Add Direct Deposit Information to a Bank Account

For direct deposit, you need to enter information about the company checking account that will be used in the direct deposit process. In Setup > Accounts > Accounts, for the account that will be used for direct deposit, enter the bank routing number, the bank account number, and a descriptive name. The name of the account will be used in the direct deposit file as the Immediate Destination Name, so you will want to clearly indicate what the account name is. For example, it would be more descriptive to call the account "1st National Checking" rather than "Checking."

On the Setup menu, point to Accounts, and then click Accounts.
Click New or select the bank account and then click Edit.
On the General tab, enter general information about the bank account. Be as descriptive as possible in the Name box, as this name will be used in the direct deposit file as the Immediate Destination Name.
Click the Detail tab, in theBank Routing Number box, enter the bank’s transit/routing number as assigned by the American Banking Association. This number is 8-digits plus a ninth “check” digit. A typical ABA number would be 091900494..
In the Bank Account Number box, enter the account number for the bank account that will be used with direct deposit.
Click the Direct Deposit tab. The Direct Deposit tab will only display for accounts in the Cash account category.
Under Destination (Your Bank's Federal Reserve Bank), in the Bank Name box, enter the name of your bank's Federal Reserve bank. This is used in conjunction with the Use Federal Id (EIN) in ODFI check box (see Step 21).
Under Processing Bank, in the Routing Number box, This field is empty by default, but if populated, the entered value will be used when generating the Direct Deposit file. If left empty, the Bank Routing Number (found on the Detail tab of Account Maintenance) for the Cash Account will be used instead. This field is used if your company pays multiple companies and you need to reference your bank and your customer's bank. See the How are Routing Numbers Used in the Output of a Direct Deposit File (NACHA Format) topic for more information about routing numbers.
Select the Include Header Record If your bank indicates that a header record is required on the file that is sent for direct deposit.
If the Include Header Record box is selected, the Header Text box will be enabled. Enter the header text for the direct deposit file as provided by your bank.
In the Modifier box, enter a modifier as indicated by your bank.
In the Reference Code box, enter an optional code (up to 8 characters) that will appear on the file control record of the transaction file. Use it to track information useful to the employer. For example, RWACHPR tells you this is the Red Wing ACH Payroll.
In the Discretionary Data box, if desired, enter any significant data useful to your business, up to 30 characters. It will appear in the batch header of the ACH file. For example, enter BIWEEKLY or 10TH OF MONTH.
In the Transaction Description box, if desired, enter a description for the transaction (up to 20 characters) that will appear on the employer’s bank statement.
Select theSuppress First 5 digits of Social Security Number check box if you want to suppress the first 5 digits of the employee's social security number for the privacy and security of your employees. Some places may require this by law.
Select the Include Trailing Record check box if your bank requires you to include a trailing record.
The Trailing Text box will be enabled if it is indicated to include a trailing record. Enter in the text for this record.
In the File Path and Name box, enter in the path where the output file name will be sent to and the name of the file. The ellipse button at the end of the field allows you to browse for this location. There is no default location. The path and file name will display the first time (and all other times you create direct deposit or prenote files if you do not change it) you use the Create Direct Deposit Files screen. If you change the File Path or Name (you can click the Ellipse button to change this information) it will display automatically on the Create Direct Deposit Files screen the next time you create direct deposit files.
In the File Type box, this is the file type required by your banking institution. The file types available are:

NACHA: The file format specified by NACHA (National Automated Clearing House Association) using FEDLINE from the federal reserve for personal computers. These records are 94 characters long with 10 records per 940 character block.

ASCII: The file format required by many main-frame computer systems. These records are 94 characters long with an additional carriage return/line feed (CR/LF) at the end of each record.

NACHA Modified: This is a modified version of the NACHA file as required by some institutions.

Select the Create Offsetting Debit check box to have CenterPoint Payroll automatically create the dollar amount that will be deducted from your company’s checking account. Do NOT remove this checkmark unless your lender has instructed you to do so.

Select the value that should be used to fill the Immediate Origin field in the direct deposit file:
- Use Bank Routing Number - The Immediate Origin field will be filled with the account's routing number from the Detail tab prefixed with a space, i.e. “ 999999999”.
- Use Federal EIN Number - The Immediate Origin field will be filled with the company’s Federal Tax ID prefixed with a “1”, i.e. “1999999999”.
- Use Custom Number - The Immediate Origin field is filled with the user-defined value entered into the Custom field. The value is prefixed with Zeros to a maximum of 10 characters, i.e. “09999999999”.
If you select Use Custom Number in Step 21, enter the Custom number to fill the Immediate Origin field with.

Click Save.