Automated Clearing House is the name of an electronic network for financial transactions in the United States. ACH processes large volumes of both credit and debit transactions which are originated in batches. Rules and regulations governing the ACH network are established by NACHA-The Electronic Payment Association and the Federal Reserve (Fed).

ACH credits are when an originator initiates a transfer to move funds into a receiver’s account. Payments will originate from the FACTS AP system and be deposited into your vendor’s account.

•CCD: Corporate Credit or Debit (with no addenda records) – This would be used for corporate trade payments. •CCD+: Corporate Credit or Debit (with one addenda record using payment related ANSI ASC X12 data segments or any NACHA endorsed banking convention) - This would be used for corporate trade payments with remittance information. •CCD+ TXP: Corporate Credit or Debit+ Tax Payment (one addenda record using NACHA’s TXP tax payment convention) - This would be used for corporate federal tax payments (940/941). •CTX: Corporate Trade Exchange (up to 9999 addenda records using ASC X12 Interchange Control Structure, Application Control Structure, ANSI ASC X12 transaction sets containing a BPR or BPS data segment or payment related UN/EDIFACT syntax) - This would be used for corporate trade payments with remittance information. •PPD: Prearranged Payment and Deposit Entry (one addenda record using payment related ANSI ASC X12 data segments or NACHA endorsed banking conventions) – This would be used for employee expense reimbursements with optional information. This is a consumer type transaction.

Branch number is used throughout the FACTS system. Branches may be referred to as stores or profit centers, divisions within an organization. The system will default various branch prompts to the branch set up in System Management Terminal F/M for each user. The posting tables for each module may be set up so that the branch number is automatically inserted into the General Ledger Account number when the system creates its journal entries. Inquiries and reports may be run by branch.

GL departments are used to track revenues and expenses by division. The GL department is imbedded in the G/L number for posting purposes. General Ledger financial reports may be printed by department.

Optionally, vendors may be assigned a document group. The most common use of the document group is to flag vendors receiving 1099’s with a specific group number for printing 1099’s. Various AP reports allow the user to print the report for selected document groups.

Electronic Funds Transfer refers to the computer-based systems used to perform financial transactions electronically.

This is the NACHA standard formatted flat file that will be transmitted to the bank.

This is a code that indicates where in the electronic payments process a payment is. Status codes are: • Entered • Submitted • Approved • Rejected • Transmitted • Accepted

G/L numbers are set up through the GL Account F/M program. GL account numbers are user-defined and are used throughout the FACTS system for posting purposes to GL.

Journal numbers are used for separating journal entries in GL by type of entry (example: sales, payroll, receivables, etc.). Each module determines the journal number to post the transactions of that module to in general ledger.

Vendor ledgercards provide a detail history of every transaction for a vendor (i.e., any invoices entered, checks written). Each vendor in the vendor file has a choice of whether to store ledgercards. Ledgercards include information for each transaction such as the date, transaction type and debit or credit amount. Ledgercard information is available for display through the Vendor Inquiry and may be printed through the Vendor Ledgercards print. Ledgercards may be removed through the Vendor Ledgercard Removal program.

The AP Manual Check entry program allows the user to enter and record manual checks that have been written against a payable that is currently in the open payables file.

The AP Noninvoice Check entry program allows the user to pay a document that is not in the open payables file. This entry program allows for the document to be entered, expensed and the payment recorded in one process. Recording COD payments are the most common use of this program.

The system allows flagging each vendor as permanent or temporary so that the AP Vendor file can be routinely purged of unnecessary records. At the end of the period, if the vendor has a zero balance and has been flagged Temporary, the vendor will be removed from the system.

This is a FACTS data file where FACTS stores a copy of the EFT Payment Batch File.

Documents that are paid repetitively such as rent or loan payments can be set up once in the Recurring Document system specifying the amount of the payable, the dates to post the associated invoice and a predetermined cutoff date.

Sequence number is the numbering scheme (from 01 to 99) used on recurring AP documents. The use of sequence numbers allows multiple recurring payable documents to be entered for each vendor

Lead time is the number of days from the date a purchase order is placed for an item until the date the item is received. Lead time data for stocked items is maintained by the system; the temporary lead time prompt provides the capability of manually providing lead time information for temporary items used in Blanket Sales Order entry.

Terms codes are created and maintained through Account Payable Terms Code F/M and Accounts Receivable Terms Code F/M. Terms codes are used in calculating invoice due dates, and discount information.

Vendor classes are used as a way of categorizing groups of vendors. A GL table is associated with each class. This GL table will be used as a default entry when using Vendor F/M.