NetSuite Electronic Bank Payments

Did you know that NetSuite has a native Electronic Bank Payments feature that is free and can be used for processing bill payments, invoice payments, or customer refunds? Electronic Bank Payments enable users to process bank payments of vendor bills, employee expenses, partner and employee commissions, customer refunds, as well as to receive bank payments from customers. Some of the features such as Terms, Early Payment Discounts, and Credit Memos that are not supported by EFT, are supported by Electronic Bank Payments.

NetSuite Electronic Bank Payments have become the preferred method for corporate payments due to the convenience, security, and error-free processing that they offer. Positive Pay services offered by leading banks can be used to detect and prevent check fraud automatically. With Electronic Bank Payments, companies and their subsidiaries can send or receive payments located within their country of operations. NetSuite also has a paid version called Advanced Electronic Bank Payments that comes with additional features. Advanced Electronic Bank Payments allow for payments across the different support countries.

SETTING UP ELECTRONIC BANK PAYMENTS:

1. Install Electronic Bank Payments bundle (Bundle Id 395113)
2. Set up company bank details (Payments > Set up > Bank Details)
3. Set up vendor bank details:
   • Create new Vendor
   • Enter entity bank details under the Bank Payment Details subtab
   • Click the checkbox  EFT bill payment
   • Save the record

4. Set up customer bank details:
   • Create new customer
   • Enter entity bank details under Bank Payment Details (Debit) and Bank Payment Details (Credit)
   • Click the check box Direct Debit (DD) and Customer Refund Payment
   • Save the record

PROCESSING VENDOR PAYMENTS:

1. Navigate to Payments > Payment Processing > Bill Payment Processing
2. Enter fields like Bank Account, A/P Account, EFT file Reference Note, Date, etc.
3. Scroll down and select transactions that you want to pay
4. Click Submit. On clicking the submit button, the page redirects to Payment File Administration
5. This page displays the status of the file submitted. An error code will be displayed if the file is not processed, along with the reason why.
6. Continue to click on the refresh button until the file is processed. Once the file has been processed, a file reference is available that can be downloaded and provided to the bank.
7. The reference shows that the transaction has been successfully processed with zero errors.
8. Other actions are available after the file has been processed:
   • ROLLBACK: It deletes transactions making it available for 24 hours only
   • REVERSE PAYMENTS: The payment is voided using journals to reverse the transaction
   • EMAIL NOTIFICATION: An email notification is sent to the vendor that the payment has been submitted

PROCESSING CUSTOMER PAYMENTS:

1. Payments > Payment Processing > Invoice Payment Processing
2. Enter fields like Bank Account, A/R Account, EFT Reference File, etc
3. Scroll down, select the transaction and click on Submit button.
4. The page will redirect to Payment File Administration and a file is generated under the File Reference field
5. The file reference can be downloaded and submitted to the bank.

ELECTRONIC BANK PAYMENT ENHANCEMENTS:

•   Support for multi-subsidiary customers and vendors
•   Payment file administration rollback for in-transit payments
•   Company bank and entity bank details processed using SuiteScript 2.0
•   Aggregate by payee preference update
•   Processing of vendor prepayment transactions
•   Approval routing and email alert notification for additional authorization prior to payment processing
•   Automated direct debit customer collections to settle outstanding invoices
•   Payment management options include payment batch queuing, rollbacks, reversals with notifications, and automated notifications
•   Process multiple payment batches concurrently in separate queues.

ADVANCED ELECTRONIC BANK PAYMENT FEATURES:

NOTE:  In order to use advanced features for Electronic Bank Payments in Production account, Electronic Payments License must be purchased and Netsuite SuiteApps License Client bundle ID: 116144 must be installed.

List of Advanced Features for Electronic Bank Payments :

•   Access all supported standard templates
•   Create and customize payment templates
•   Automate the processing of payments in batches using the Process Bills Automatically option

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