Electronic Payment batches

Electronic Payment batches – Introduction 

The Advanced Electronic Bank Payments license allows you to automatically group transactions into payment batches, process payment batches, and schedule when to create and approve payment batches. 

Prerequisites: 

1. NetSuite SuiteApps Licensed Client SuiteApp 
2. Active Advanced Electronic Bank Payments license 
3. Process bills automatically checkbox enabled – in Company bank detail record 
4. Select an accounts payable account in the company bank detail record 
5. EFT Bill Payment checkbox enabled – in vendor and employee records 
6. Bank details of the vendor 

After completing the necessary requirements, NetSuite can automatically collect all relevant transactions, like bills and expenses, into a payment batch. NetSuite will include transactions that have the same subsidiary and AP account as defined in the company bank details record. 

A payment batch can include up to 5,000 transactions, depending on the payment file format of our company bank details. Each batch is labeled using the name entered on our company bank details record with a batch ID appended to the name. For example, if the name entered is Main, the first batch will be labeled as Main 1. The next batch will be Main 2 and so on. 

If the total amount of a payment batch exceeds the payment limit per transaction set on the company bank details record, NetSuite automatically routes the payment batch for approval. We can set batch approvers and approval limits on the company bank details record. 

After approving a payment batch, the system generates a payment file administration record that stores details and a list of included in NetSuite bill payment records. It also includes a download link for the payment file, which contains payment instructions, such as our company bank details, the payee’s bank details, and transaction amounts. 

Finally, upload the payment file to our bank portal for processing. Our bank will debit the payment amount from our company bank account and deposit the amounts into the payee’s primary bank account. Note that NetSuite does not automatically send the payment file to the bank. The bank completes the funds transfer using their system, not through NetSuite. 

To customize which transactions are grouped into a batch, we can create a Saved Search and assign it to an existing batch. For example, create a Saved Search to group bills from specific vendors. Then only those bills are collected for the batch.  

Processing Payment batches 

• Navigate to Payments -> Payment Processing ->Payment Batch List 
• Select a company bank account 
• On Open subtab, select payment batch and click Submit button. Click on Batch ID to view or modify the payment batch details 
• On Bill payment batch page, select Edit button. 
• Enter EFT file reference note 
• Under the Select transactions sublist, select the Pay option beside the transactions to be included. Transactions not selected will be included in the next batch that NetSuite creates.  
• If the amount is within our limit, click Save and Submit to save all changes and generate a payment file for this payment batch. We will be redirected to payment file administration record for this payment. [If the amount exceeds the limit, the batch will be routed to an approver with higher limit.] 
• On the payment file administration record, the File Processed field displays as queued. Click refresh until it displays processed. Click download to save a copy of the payment file to your local drive. 
• Upload this payment file to bank’s electronic portal where the payment will be processed. NetSuite does not automatically upload the file. 

Payment batch approval 

• Navigate to Payments -> Payment processing -> Bill payment batches 
• Click view next to the payment batch to approve and verify the batch information 
• Ensure that the EFT file reference node is entered 
• Ensure that the total payment amount and payment amount for approval are correct 
• Verify the transactions to approve under select transactions sublist. 
• Click Either approve or reject. 
• If the batch is rejected, NetSuite includes the transaction in the next batch and notifies the user who created the batch. 
• If the batch is approved and is withing our limit, then we will be redirected to payment file administration record for this payment batch. If it exceeds our limit, it will be redirected to the next approver with higher approval limit.