NACHA

Do you need to create a NACHA file to send to the bank?  NetSuite’s Electronic Payment module can handle that.  Your bank will typically provide a requirements file.  NACHA files do offer some flexibility in formatting, and it is important to check with your banking institution.  Here are a few terms and concepts to know:

• “CCD” is “Cash Concentration or Disbursement” and is the standard template for B2B payments out of NetSuite.
• “PPD” is “Prearranged Payment and Deposit Entry” and is the standard template for employee payments outside of NetSuite.
• “Pad Blocks” refers to a requirement that the file be created in blocks of 10 rows.  All unused rows will print “9999…”.
• “Balanced Files” refers to a requirement that the offset (settlement) account be carried in the ACH file.
• “Immediate Origin” is typically the number “1” followed by the company tax ID.
• “Trace Number” is a unique 15-digit identifier that can be used to monitor payments and communicate with the bank.  (NetSuite will prepopulate a trace number in the prepared  NACHA file, but to my understanding, is re-assigned by the bank so that it is unique.)
• “ODFI” is “Originating Depository Financial Institution” and is the bank initiating the transaction.  If you are generating the NACHA file in NetSuite, then this is your bank.