Pre-notes

What is a "Pre-note"?

A Pre-note is an electronic file created for the purpose of being transmitted to your bank. While it contains all of the direct deposit information for your payroll, the monetary amounts in the file will all be zero.

Essentially, it is a test file that your bank will use to test the validity of the file information that you will be transmitting to them for each direct deposit payroll in the future.

What causes a pre-note after the original pre-note has been done?

Specifically, the following changes made to an employee's direct deposit tab (in Maintain>Payroll>Employee Information) will trigger a new pre-note:

  • Editing the routing number
  • Editing the account number
  • Editing the account type
  • Adding a new account

Changes can be made to the amount or percentage fields without causing a pre-note to occur.

Note: The pre-note function is based on the last changed setting in either the Maintain>Payroll>Employee Information - Direct Deposit Tab or Organization>Set Up Modules>Electronic Funds Transfer - Bank Information Tab.
In order for the pre-note control to work at the Employee level, the employee record must be updated after any updates occur at the Bank Account level.

How can I get a check for a direct deposit employee?

Turn off direct deposit for an individual employee by clearing the Direct Deposit check box on the Job and Pay tab. Print the check, and then turn on direct deposit again for the next payroll.

However, you can also print checks for all employees (even if they usually receive Direct Deposit) by selecting the "Override Direct Deposit and Print Checks for All Employees" check box (Activities>Payroll>Print/Email Checks and Vouchers).

Is the three-day limit on the pre-note for direct deposit a program requirement?

No. This comes from banking regulations.

How can I avoid printing checks for employees for the first time?

Clear the "Disable Pre-note" check box , with Administrative user rights using the Organization>Set Up Modules>Electronic Funds Transfer>Bank Information tab. By doing so, pre notes will not be created for all your employees.

However, to specify a pre-note for a particular employee, clear the "Disable Pre-note" check box on the Maintain>Payroll>Employee Information>Direct Deposit tab.

How do I disable Direct Deposit pre-notes for the entire system?

To disable pre-notes for the entire system, with Administrative user rights, open Organization>Set Up Modules/Electronic Funds Transfer>Bank Information Tab. Select the Disable Pre-note for Direct Deposit check box for each Bank Accounting Number listed. This will prevent the pre-note from being creating and sent to the financial institution for each G/L cash account.

How do I disable a Direct Deposit pre-note for a single Payroll run?

To disable pre-notes for a single Payroll run, with Administrative user rights, open Organization>Set Up Modules/Electronic Funds Transfer>Bank Information Tab. Select the Disable Pre-note for Direct Deposit check box for each Bank Accounting Number listed. This will prevent the pre-note from being creating and sent to the financial institution for each G/L cash account.

After the Payroll run has been completed, you must go back into Organization>Set Up Modules/Electronic Funds Transfer>Bank Information Tab and uncheck is box.

How do I disable a pre-note for a single employee?

For Direct Deposit, sending a pre-note is the default for all employees unless you have chosen not to send a pre-note for a particular employee on the Maintain>Payroll>Employee Information, select the employee and then click the Direct Deposit tab. To disable the pre-note, check the Disable Pre-note check box.