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 payment information for your vendor, 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 electronic payment in the future.

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

Specifically, the following changes made to a vendor's payment information (Maintain>Accounts Payable>Vendors) will trigger a new pre note:

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

Note: The pre-note function is based on the last changed setting in either the Maintain>Accounts Payable>Vendors - Payment and Terms Tab or Organization>Set Up Modules>Electronic Funds Transfer - Bank Information Tab.
In order for the Pre-note control to work at the Vendor level, the vendor record must be updated after any updates occur at the Bank Account level.

How can I get a check for a vendor that is paid electronically?

Turn off electronic payments by clearing the Electronic Payments check box on the Maintain>Accounts Payable>Vendors>Payment and Terms tab. Print the check, and then turn on electronic payments again for the next payment.

However, you can also print checks for all vendors (even if they usually receive electronic payments) by selecting the "Override Electronic Payments and Print Checks for all Vendors" check box (Activities>Accounts Payable>Pay Selected A/P Invoices).

Is the three-day limit on the pre note for electronic payment a program requirement?

No. This comes from banking regulations.

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

Check the "Disable Pre-note" check box on the Organization>Set Up Modules>Electronic Funds Transfer>Bank Information tab. By doing so, pre-notes will not be created for all your vendors.

However, to specify a pre note for a particular vendor, select Yes in the "Send Pre-note" box on the Maintain>Accounts Payable>Vendors>Payment and Terms tab.