Chasing down paper checks and waiting outside the bank in long lines is a thing of the past now. The current reality is that businesses have adopted the electronic bank payment system as fast as an eagle grasps its hunt. It’s safe to say that the electronic payment system has taken center stage, and there is no going back now. Why? Because digital transactions are more secure and streamlined.
Electronic bank payments, or electronic funds transfers (EFTs), are the digital exchange of money between bank accounts. They can be done in many ways, including automated clearing house (ACH) or wire transfers without using checks. NetSuite seamlessly integrates with this system because NetSuite Electronic Bank Payments automate businesses’ financial systems and keep track of real-time cash flow.
In addition, the NetSuite Electronic Bank Payment system automates the creation of bank payment files and improves the payment and collection process. It helps businesses keep track of vendor payments, employee salary disbursements, and other financial transactions. In essence, it saves time and money and effectively improves cash flow.
What is NetSuite Electronic Bank Payments?
NetSuite Electronic Bank Payments is a powerful SuiteApp that bridges the NetSuite account and the bank and streamlines electronic financial transactions. Let’s say that you have to generate payments for your vendors and process the customer refunds. What if we told you you could do just that with a few clicks from anywhere and on any device? Yes, it is possible because when you integrate NetSuite into your business, it gathers the necessary payment information for the transactions made and makes a readable format for the bank.
NetSuite Electronic Bank Payments is not just about automating payment information. It’s a comprehensive tool that makes managing your funds easier and more efficient. You can customize payment templates to match your bank’s requirements, set up automatic approval workflows for enhanced security, and receive real-time notifications when payments are approved. These features not only streamline your financial operations but also give you greater control and visibility over your cash flow.
NetSuite Advanced Electronic Bank Payments gives you comprehensive control over your cash flow, ensuring vendor payments are made on schedule and customer invoices are collected smoothly. It’s a win-win for businesses of all sizes, allowing them to operate more efficiently while focusing on strategic growth initiatives. It also offers many payment options, including payment batch queuing, rollbacks, and reversals with notations and automatic notifications.
NetSuite Electronic Bank Payments has two categories of bundles for your business needs:
Basic Bundle:
The Basic Bundle is an excellent starting point for organizations who want to automate domestic bill payments. It’s like having a digital checkbook within NetSuite. You can easily create payment files in a format that is compatible with some local banks, avoiding the need for manual check printing and mailing. This bundle simplifies the process by allowing you to construct payment batches for accepted bills, schedule automated approvals, and execute numerous batches simultaneously. Setting it up is simple; all you have to do is establish your company’s bank details and configure vendor bank information, and you’re ready to produce payment files with a few clicks.
Setting Up Basic Bundle:
- Set up company bank details by defining G/L accounts for payments.
- Select the correct payment template.
- Associate the bank account no, routing no., and unique bank identifier.
- Set up vendor bank details.
- Check the EFT Bill Payment box.
- Save the record.
- Click new bank details.
- Generate payment files.
- Navigate to payments > payment processing > bill payment processing.
- Select the company bank account and A/P account.
- Select the bills to pay.
Advanced Bundle:
The Advanced Bundle uses the maximum potential of electronic bank payments for global organizations. It’s similar to having a universal translator for your funds. This bundle provides access to over 50 supported bank formats worldwide, allowing you to pay vendors and partners in multiple regions. You can also develop and alter payment templates to ensure they meet your bank’s unique standards. With its features, you may completely automate payment processing, receive fast payment files for complex transactions, and even use Electronic Payments APIs for additional customization.
Setting Up Advanced Bundle:
The Advanced Bundle requires an additional license, although the first setup process is the same as the Basic Bundle. With a license, you will have access to advanced features.
Benefits of NetSuite Electronic Bank Payments
Cash Management:
NetSuite helps you keep your money for longer. Instead of rushing payments before invoices are due, you can plan them for when they need to be paid. This frees up critical resources and gives you greater control over your budget.
Low Risk:
Fraud is no joke. NetSuite’s integrated review and approval workflows ensure that only authorized staff can approve payments. This extra layer of security provides peace of mind while reducing the chance of financial loss.
Better Communications:
Communication is essential in any business partnership. NetSuite allows you to automatically notify vendors when their invoices are paid. This fast notification demonstrates that you respect their company and promotes better, more trusted connections.
More Visibility:
Ever wonder where your money goes? NetSuite offers comprehensive transparency throughout the payment process. You can track the progress of each payment, from start to distribution, providing you a comprehensive picture of your available cash flow and allowing you to make better financial decisions.
Payment Processing:
The NetSuite Advanced Electronic Bank Payments module automates the production of several payment batches and allows you to specify batch criteria, controls, and payment dates. Approval routing and email alert alerts are offered to request extra payment authorization before payments are processed, and outbound and inbound invoicing options facilitate payment tracking.
Secure Information Sharing:
Enhanced EFT capabilities with filtering options simplify billing management by allowing your team to view bills, make partial payments, and manage them. NetSuite Electronic Bank Payments also features permissions and access levels, allowing you to get individuals the necessary information without mistakenly disclosing sensitive information.
Features of NetSuite Electronic Bank Payments
Checks and inefficient processes are out, and NetSuite Electronic Bank Payments is in because:
Electronic Bank Files:
NetSuite Electronic Bank Payments automates the development of bank files for ACH, direct deposit, customer refunds, and other electronic payment methods. Payment management tools enable finance teams to generate several payment batches with varying criteria, procedures, and due dates. Flexible, rules-based payment aggregation lowers the risk of fraud by imposing payment limits, such as limiting the amount of payments made to a single vendor or employee each day. Electronic Bank Payments also allow automatic collections to clear overdue invoices by withdrawing funds directly from the customer’s bank account.
Payment Approvals:
Automated approval routing adds another layer of control, lowering the chance of payment errors or fraud. System-generated notifications remind approvers to examine payment files for accuracy and appropriateness before proceeding.
Email Notifications:
NetSuite Electronic Bank Payments’ user-defined payment alerts enhance communication with trading partners by automatically alerting suppliers when a payment is received.
Global Payments:
Advanced payment features support over 50 foreign bank formats and multicurrency and multilingual capabilities.
Fraud Prevention:
NetSuite Electronic Bank Payments’ Positive Pay function protects against fraud by notifying your bank of the amount and payee for each check issued. Providing this information to your bank before presenting checks for payment assists the bank in ensuring that the check details have not been altered. With a voided check notice, you may be certain that the bank has blocked these checks.
NetSuite Advanced Electronic Bank Payments FAQs
Q1. Is an additional setup required for the Advanced Bundle compared to the Basic Bundle?
Yes. The initial setup is similar, but the Advanced Bundle requires an additional license. With the license, you can access the advanced features of the NetSuite Electronic Bank Payments SuiteApp.
Q2. Does NetSuite ensure the security of financial data?
Yes, NetSuite prioritizes the security of financial data. It has encryption protocols and access controls to keep your financial information safe. The advanced approval workflows also provide an extra layer of protection by approving the payments from authorized personnel.
Q3. Does NetSuite track the status of international payments?
NetSuite has a real-time tracking system for all payments made anywhere. It allows you to monitor international payments with complete transparency.
Q4. Does NetSuite integrate with an existing bank for electronic payments?
NetSuite supports multiple banks worldwide and can generate payment files that are readable by banks. It makes the uploading process easier.
