The first time EFT is installed and setup, users can be asked by their financial institution to send a test file to check if EFT direct payment will be processed on a timely manner when the time comes to transfer funds. This blog post will focus on processes needed to send a valid EFT test or a direct payment file to the bank.

EFT Direct is an add-on program for Sage 50 Canada. It will allow subscribed users to generate a file that is compatible with Canadian Payments Association (CPA 005) standard. The file generated has a DAT extension. After the file generation the user needs to log on the financial institution website then upload it. There should be a confirmation from the bank site saying the upload is successful.

Before using EFT for the first time, it needs to be setup. So when a user subscribe with Sage to send direct payment trough EFT, we will send a link to download EFT program. After installation EFT needs a company profile setup so that it can generate the direct payment file. But the user needs to get in touch with the bank to have the originator or identification number which is used during the company profile setup process. To setup a company profile in EFT, we have instructions on article 10083.

After the company profile has been setup, EFT should be ready and it can generate a file that can be sent to the bank as test file. EFT does not have a test feature so the test generated file will be like any other future generation. Because the bank knows that the generated file is for testing purpose it will not transfer any funds. The bank just checks the file validity. The test file is generated in three steps:

-          First the transactions (supplier’s payments, employee’s payroll, and customer’s receipts) are posted in Sage 50 Accounting Canada as usual,

-       Second, EFT program retrieve the transaction’s information from Sage 50 and generates a file,

-       And third the file generated can be uploaded to the bank website.

In order for the process to be smooth, in Sage 50 you can enter the banking information for suppliers, customers and employees (keep in mind to enter the same banking information into EFT before generation, see company profile setup article above). So when the banking information is recorded in Sage 50 it allows the direct payment transactions with a different tracking:

-          Employee’s cheque number becomes DD (for Direct Deposit number),

-          vendor’s cheque number becomes VP (for Vendor Payment number) and

-          Customer’s cheque number becomes CP (for Customer Payment number).

For customers and vendors the payment method (pre-authorized debit and direct deposit) needs to be selected manually in the transaction windows (Invoices, Receipts or Payments). For employees the payment method is automatically (in Paycheques window) on direct deposit if the employee banking information has been saved.

When the direct payment transaction has been processed in Sage 50, EFT can generate the direct payment file. To start the generation process in EFT, click on File Generation then choose the generation type. EFT will look into Sage 50 database for the transaction posted. It will search into the Sage 50 based on:

-          The transaction date for vendors and customers;

-          The pay period end date for payroll (not the payroll direct deposit date).

After pressing Continue, EFT will show transactions posted into Sage 50 based on the dates provided, you can choose to generate a file for all or some transactions . EFT will automatically print a summary of the transactions generated and will give the location it generated the file. Sometimes depending on Microsoft Windows security the generated file can be hidden. We have article 10577 to help find it. You can now log on the bank website to upload the generated file.

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