BACS flat file processing

Note: BACS flat file processing is not available for CloudSuite Distribution. Instead, use Electronic AP payment remittance.

BACS (Bankers' Automated Clearing Services) is a scheme for the electronic processing of financial transactions in the United Kingdom (UK). You can pay for goods by transferring money directly into the vendor's bank account. These transactions are known as BACS payments. In Distribution SX.e, you can use this functionality to pay UK vendors electronically. You can specify which vendors are to be paid by BACS, and generate the payments as part of your current accounts payable (Vendor) processes.

Note: As an alternative to flat files, with appropriate setup, you can send BACS transactions that use BOD-based electronic AP payment remittance. This alternative provides additional functionality.

See Electronic AP payment remittance.

BACS format

The BACS format is an agreed standard that enables your data to be processed by your bank. There are two formats, BACSTEL and LloydsLink. Your bank specifies which format to use. The BACS format is set in CR Bank Setup. When a BACS payment is made by Distribution SX.e, the transaction information is output to a flat file that meets the selected BACS format requirements. After the flat file has been created, Distribution SX.e has completed its involvement the BACS payment process. Your bank specifies a process for sending the flat file to them.

BACS flat file

When you use Vendor Entry Check Print Report to generate a BACS payment run, a payment file is created for each bank. The file name is based on the BACS format you specified in CR Bank Setup.

If the BACS format is BACSTEL, the name of the output file is BACSTEL_<bankno>.TX. For example, for Bank 5 the file name is BACSTEL_005.TX.
If the BACS format is LloydsLink, the name of the output file is LLOYDSL_<bankno>.TX. For example, for Bank 5 the file is LloydsLink_005.TX.

Every time you generate BACS payments with Vendor Entry Check Print Report, the <BACS format>_<bankno>.TX file is appended with the new information. If you generate BACS payments at 9:00 AM and again at 5:00 PM, the file at 5:00 PM contains the details of both payment runs. To prevent a file from being appended, move it from its output location on the server to another location.

This file is output by Distribution SX.e to the EDI flat file directory you specify on the Vendor Entry Check Print Report. If you do not specify a directory on the report, the file is saved to the Outbound EDI directory that is specified in SA Company Setup.

A BACS_ERR_<bankno>.TX file may be created if settings are not correct. For example, you select Yes for the BACS Processing option on the report. If the bank that is specified on the report does not have its format specified in CR Bank Setup an error file is created. This file is also created if the bank on the report does not match any of the AP transactions for the journal entered. This results in no transactions being processed.

BACS payments and Checks or EDI payments cannot be generated in the same run. If you select Yes for BACS Processing, only vendors with Remittance/BACS selected in the Payment Method field on their vendor record are processed. Run the report a second time to process the vendors that use the standard process payment method.

Optionally, you may often print multiple copies of the file. If so, use the Printer for Separate Remittance option on the report to set up a separate remittance sent to a file name instead of a printer.

BACS setup and operational flow

Before you make BACS payments, you must specify a BACS Format on CR Bank Setup records. Data must be output in an agreed format so that it can be read at its destination. The BACS format represents these standards.

To set up a vendor so that is paid using BACS, specify this information in Vendor Setup:

In the General view, specify BACS as the payment method.
In the eCommerce view, specify the bank account information

After you have completed the setups, follow this recommended operational flow for processing checks and paying vendors:

Use the Vendor Cash Requirements Report to determine which invoices are scheduled for payment. Run this as a stored report.
Optionally, use Vendor Edit Payment Selection Entry to determine which invoices are to paid, or use it to make any changes on particular invoices.
Use Vendor Entry Pay Invoices Due Report to pay all of the invoice payment records that are scheduled and qualified to be paid. This step updates Accounts Payable and General Ledger, and provides the journal number needed to run Vendor Entry Check Print Report.
Use the Vendor Entry Check Print Report to generate BACS payments or print checks based on the options set on the report, including the journal number assigned in Vendor Entry Pay Invoices Due Report. The process for paying vendors by BACS is similar to that of generating checks for payment.

Note: Options in the Vendor Entry Check Print Report enable you to generate BACS payments and checks. However, you cannot generate checks and BACS payments in the same payment run. If you pay some vendors with checks and other vendors using BACS, you must run Vendor Entry Check Print Report separately for each payment type.