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1.  Direct Deposits

Posted 12 days ago
We recently had a situation where a new vendor was created with EFT banking information from an existing vendor.  A payment was sent to the wrong vendor because of this.  We thought a prenote was required for any new set up but apparently that is not the case because a prenote was not sent for the new vendor.

We are concerned our auditors will have a problem with this apparent lack of control.  Is there a setting to make prenotes required for additions/changes to EFT banking information?  Has anyone developed a process to address such a concern?

I am sure we can create a report where banking information is on a vendor record without a prenote date but what about if the banking information is changed?

Suggestions are welcome!  Thanks, Tracy

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Tracy Yaklyvich, MBA
Controller
American Society of Health-System Pharmacists
Bethesda MD
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2.  RE: Direct Deposits

Posted 11 days ago
Edited by Brian Heiple 11 days ago
  |   view attached
I had the same exact situation occur in the past week.

A this point my theory is:
 A vendor was created in the past including EFT banking information.
The vendor was then deleted.
When the vendor was deleted the EFT setup was not deleted leaving an orphan record record in the SY06000 table.
Later a new vendor was created using the same vendorid as the on previously set up.
     Our vendorID's are made up of  the 1st few letters of the vendors name followed by a 4 digit number, for example GPUG0001. Very easy to duplicate.
Because the new vendor shares the same vendorID as the deleted one, the orphaned EFT information is now associated with the new vendor.  This would also include prenote date.

I have provided our accounting team a report listing all vendors with an EFT setup to see how many have been impacted by this.

The report includes:

VENDORID  – Vendors  GP ID

VENDNAME – Vendor Name as displayed on the Vendor Maintenance window. If the vendor has an orphan record in the SY0600 table its name will indicate this.

VENDSTATUS – Vendor Status as displayed on the Vendor Maintenance window.

EFTTransitRoutingNo – Routing Number as shown on the EFT address window

EFTBankAcct – Bank Account as shown on the EFT address window

EFTSTATUS – EFT status as shown on the EFT address window

Times Used – This is the number vendors using the combination of the routing number and bank account.

The attached file is the SQL script used to generate the report.

I hope this helps. Since I am still trying to figure this out,  I will post further information as it develops.

 



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Brian Heiple
Sr Application Analyst
Lutheran Social Service of Minnesota
Saint Paul MN
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Attachment(s)

txt
eftAnalysis.txt   1K 1 version


3.  RE: Direct Deposits

Posted 10 days ago
​thanks for the info Brian.  In our case, the prenote sent field for the vendor was blank.  The same banking information on another vendor had been prenoted, but not for this vendor, hence our concern.

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Tracy Yaklyvich, MBA
Controller
American Society of Health-System Pharmacists
Bethesda MD
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4.  RE: Direct Deposits

Posted 4 days ago
Tracy,

The only setting for requiring EFT prenotes that I know of is on the Checkbook EFT Payables Options window.

To get there, use:

Cards-Financial-Checkbook
Select your checkbook, then select EFT Bank button in lower right corner
From the Checkbook EFT Bank Maintenance window, select Payables Options.

I'm curious...did you "copy" and existing Vendor record somehow to create the new one, or was the new one set up completely from scratch?





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Richard Ward
Vice President - Controller IPD
Storm Industries, Inc.
Torrance CA
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5.  RE: Direct Deposits

Posted 3 days ago
​Richard, we do have prenote required checked.  Thanks for telling me about that.  I did not even know that was there!  I am told the vendor set up was from scratch.  How do you "copy" a vendor set up?

Thanks, Tracy

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Tracy Yaklyvich, MBA
Controller
American Society of Health-System Pharmacists
Bethesda MD
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6.  RE: Direct Deposits

Posted 3 days ago
I don't think a pre-note will actually solve the issue however.

When a bank runs a pre-note it just checks if the routing number and bank account number exists it does not have a way to check if you are sending money to the right person or company as that information is not in the standard ACH file....

Wells Fargo and some other banks do have expanded services to do this, it requires a custom file however.

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Mike Zerr
Application Consultant
DFC Consultants, Ltd.
Fargo ND
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