Direct deposit

Direct deposit is the process of automatically depositing employee wages into an employee's bank account. The employee does not receive a paycheck and may or may not receive a printed pay stub, depending on your organization's policies. In the United States, direct deposit is sometimes referred to as an automatic clearing house (ACH) deposit.

Note: Standard U.S. ACH transactions conform to the NACHA PPD format. The International ACH Transaction (IAT) format should only be selected for use when the payment crosses national borders and some part of the payment process involves the U.S. ACH Network. For more information about payment processing, see the Infor Payroll User Guide.

To use direct deposit, employees can choose to have their pay directly distributed to as many as 99 bank accounts. Employees can specify a partial distribution or 100 percent of their net pay.

There are 99 available accounts to allow for historical tracking. For example, if an employee closes one account and opens another, you can inactivate the previous account and assign the next available number to the new account.

The employee must have one default bank account. The default bank account is the account where any remaining balance is deposited after distribution to all other accounts. The bank account you select as the default is always processed last. You must define the default account as 100 percent to allow the Payroll application to distribute the total remaining balance of net pay to this account after all other distributions have been processed.

Before you authorize direct deposits for an employee, you can verify that the direct deposit option is valid for the bank account and the employee record.

The direct deposit record must be accepted before the Payroll application can automatically deposit a distribution. A direct deposit record is activated when the value in the Pre-notify Status field on Direct Deposit Distributions (PR12.1) is Accepted.