Using Penny Tests instead of Pre-Notes is a more secure process to verify vendor bank accounts. In addition to verifying the bank account, it confirms with the vendor that they provided the correct information to receive ACH payments.

This can be achieved by adding an option in Accounts Payable Setup to select whether or not you want to use Pre-Notes or Penny Tests to verify ACH payments.

A field would need to be added to the Electronic Payment screen (or in AP Setup) to enter an amount to be used for the Penny Test. It will require a restriction to only allow amounts under one dollar.

The change would rename everything labeled as Pre-Note to Penny Test. The current columns and processes for Pre-Notes can still be used for the Penny Tests.

There would need to be a different format for the Penny Test ACH file, which would mirror the regular ACH format.

When the Penny Test is sent to the bank, it would create a "Penny Test" Invoice for each vendor in the amount sent to the bank in the ACH file.

by: Kemp O. | over a year ago | Financial Management