Create Bank Prenote

Use this option to create a file that allows banks to verify information required for setting up direct deposits of employees' pay checks. The Create Bank Prenote option enables you to perform up to two test runs for each employee account. The tape includes the same payroll data required for a direct deposit, except all dollar amounts are set to zero.

The Bank Prenote report is generated each time you run the option. The report lists employee names and ID numbers, bank names and account numbers, and prenote transaction codes.

Menu Path:  Human Resources > Entry & Processing > Payroll > Create Bank Prenote

Direct Deposit Prenote Process

The Create Bank Prenote option is a prerequisite for enabling direct deposits to employees' bank accounts. A prenote allows the bank to verify name and account information before receiving the employees' initial deposits.

In some cases, a bank may request two prenotes. To accommodate this, you have the option of running the Create Bank Prenote option once or twice for each employee. In any case, the prenotes must be run before you can process a pay run for the employees in question.

One difference between prenotes and deposits is that prenotes update the transaction codes in the Deduction records assigned to employees for processing direct deposits. Six system-defined codes are accepted in the Transaction Code field of employees' Deduction records, three for checking account deposits and three for savings account deposits:

Checking Savings
1st Prenote 24 34
2nd Prenote 23 33
Deposit 22 32

When you set up the direct deposit Deduction record for an employee whose bank requires two prenotes, 24 or 34 should be assigned as the transaction code, depending on the type of account. Running the Create Bank Prenote option the first time changes the code to the next lower level, either 23 or 33.

The next time you run the prenote option, the system changes the code to the final level, 22 or 32. This excludes the employee from future prenote runs and ensures that direct deposits will be handled properly when you process the employee's pay.

The same procedure applies to an employee whose bank requires only one prenote. The only difference is that you should assign 23 or 33 as the transaction code when you set up the employee's direct deposit Deduction record.

If you create a prenote tape and find an error, you may have to manually reset the code in the employee's Deduction record to its previous state. For example, if the prenote test did not run properly and the employee's transaction code was changed to 22, you would have to change it back to 23 to be able to run the Create Bank Prenote option again for the same employee.

Generating a Bank PreNote file

1. Select Human Resources > Entry & Processing > Payroll > Create Bank Prenote.
   The system checks employees' Deduction records for prenote codes. If one or more employees have prenote transaction codes, the Create Bank Prenote page displays.
   If no prenote codes are found, a message displays to indicate this. If you are certain prenotes should be run for direct deposits, you need to either set up Deduction records for the employees or set the records' prenote transaction codes to the proper settings.

2. In the Date Entries are to be Posted field, enter the date for posting the prenote file. The system stores this date in the file's header record.

3. In the File Creation Date field, enter the date you want to apply to the file. The field defaults today's date, which you may change as needed. The File Creation Date is also stored in the file's header record.

4. Click OK.

5. In the Confirmation dialog, click Yes.

6. In the Print window, you can change the default file name (pnbank.tpe) if needed.

7. Click OK.

8. In the second Print window, select a destination for the Bank Prenote report.
   The report's default file name is banktape.rpt. If you already have a bank tape with this name, you must change the default to avoid overwriting the existing file.

9. Click OK to create the tape and generate the report.

10. If the records processed correctly, a confirmation will display. Click OK.
    or
    If the system detected errors during processing, a Warning displays. The warning indicates the type of problem encountered.
    Click Yes to close the Warning, and then correct the problem indicated. Also, be sure to check employees' direct deposit Deduction records to see if you need to reset their transaction codes. Run the Create Bank Prenote option again after making the necessary corrections.