Accounts Payable Q&A: Electronic Payments in AP

November 2023    Tags: Accounts Payable, EFTs, Invoices

What’s the best way to record a payment made via direct bank transfer rather than a check?

Payments made electronically that don’t involve a physical check can be recorded as an Electronic Funds Transfer (EFT) in AP. The EFT option can be used to add new invoice records or to update an existing unpaid invoice record. EFTs behave similarly to manual checks in AP and are posted when you run the Post Checks/EFTs utility.

To create a new EFT transaction

1. In the AP Quick Launch, search for and select “Invoice/Manual Check Entry.”
2. Select the desired Vendor.
3. Select EFT as the transaction type (to the right of the Memo field).
4. Enter the remaining information for the payment.
5. Press Ctrl+S.

To change an unpaid invoice to an EFT

1. In the AP Quick Launch, search for and select “Invoice/Manual Check Entry.”
2. Select the desired Vendor.
3. Select the unpaid invoice from the Reference field or double-click it in the Invoice/Manual Check Entry List.
4. Change the transaction type (to the right of the Memo field) from Unpaid Invoice to EFT.
5. Press Ctrl+S.