How to Setup Electronic Funds Transfers (EFT) in Sage 50 CA

If you are searching for an accounting software to manage the day-to-day accounting and bookkeeping functions of your business, you should look no further than Sage 50. Sage 50 has also launched a new version named Sage 50 Canada for the residents in Canada. It comes with a highly user-friendly interface & improved features, to save you a lot of time & effort. However, as per the feedback received from a section of Sage 50 Canada users, there are some accounts-related features they often find difficult to use. Some of them have informed that they are not quite aware of how to enable direct EFT (Electronic Fund Transfer) in Sage 50 Canada. In this blog, we will look at a simple and step-by-step procedure to Setup Electronic Funds Transfers in Sage 50 CA. Please go through the blog till the end and implement the steps sequentially.

Here we go!

Procedure to Setup and use EFT Direct in Sage 50 Canada

Please implement the steps mentioned below.

• In Windows, go to Start >> Programs >> Sage 50 EFT Direct.
• In case you are using the EFT Direct for the first time, the New Company window will be displayed automatically. Click on the Enter Details about Your Company tab and provide the information such as:
  • Identification Number: The 10-digit EFT transaction number of your bank
  • Working Directory: The location of your EFT data files.
  • Sage 50 Directory: The location where your Sage 50 data files are stored
  • Sage 50 File Name: Choose the file that includes your Sage 50 data.
  • Payroll, A/R, A/P Generation File: The file you want EFT Direct to use to include data that needs to be sent to your bank

Read More : How to Use Sage 50 EFT Direct

• Add your bank information in the next section 
• Click on the EFT tab and provide the information such as:
  • Institution No. for Returns: the institution number provided by your bank
  • Account No. for Returns: the account number where you wish the funds to be returned if they can’t be transferred due to some issue
  • Reserved Fields for Organization: as provided by your bank
  • Data Center Number: as provided by your bank.
  • Element Identification: used only by the CPA standard
  • Settlement Code: this is not mandatory for some banks
  • Transaction Code (Accounts Receivable and Payable): you may either accept the code displayed on the screen or enter a standard CPA transaction code
• After entering all the information above, click Close. You will be returned to the New Company window.
• Click on Add to save your inputs
• Next, Sage 50 EFT Direct will import your employee, customer and vendor information automatically.
• Now go to the employee/customer /vendor tab ( as necessary) and add the requisite information.
• Click on Employee Maintenance.
• Now choose an employee 
• Click on Modify 
• Provide the details of the bank and accounts where you wish to deposit paychecks.
• Now checkmark the box to set the status of the employee’s Direct Deposit to Active.
• Checkmark the Active box in order to add the amount in this line to the file you will send to the bank.
• Click Save
• After all the details are entered, click on the next section named Using sage 50 EFT Direct. Here, you will need to create a file to send to the bank.
  • Go to the file generation menu and choose EFT Direct Payroll Generation.
  • Type in the information related to pay periods and dates.
  • Choose Use employee check dates / Use default funds available date to specify when the funds need to be deposited into the accounts of your employees
  • Click Continue. It will start extracting payroll information from Sage 50
  • Now open the Payroll Selection window and provide the required information. You can select the employees by double-clicking on the Select field. Alternatively, you can check the Select All box to include all the employees.
  • Click on the Generation button, in order to create the direct-deposit file and also to print the report.
  • Click Yes to create the payroll file

Also Read : How to Setup Sage 50 NACH/ACH Payment to the Bank

Final Words

In the discussion above, we have shown you how to enable direct EFT in Sage 50 Canada. Hope this will be of great help to you. Simply follow the steps sequentially and enjoy the enhanced benefits provided by the direct EFT facility in Sage 50 Canada.

Frequently Asked Questions(FAQs)