Introduction
With the 03/15/2023 update, a new field was added for EFT compliance. This field allows you to designate a payee bank account as a commercial or a consumer account.
You must ensure the correct option is selected for existing vendors and owners, as well as new ones going forward. If you have a large number of vendors who need to be updated to the commercial setting, please start a chat with support so we can assist you.
Note: This is only applicable if you are using Bill Pay.
To designate a payee bank account as commercial or consumer
When you set up EFT for a new vendor or owner, there is a new check box-- Is Commercial Account? -- that allows you to designate the bank account as a commercial account.
Most vendors are companies, not individuals, and the Commercial Account option is appropriate. For owners, the opposite is true: most owners are individuals, and you should not select the Commercial Account option.
However, for both vendors and owners, there are exceptions -- some vendors are individuals, and do not have commercial accounts, and some owners are companies and do have commercial accounts.
Existing EFT Setup for Owners and Vendors
If you set up an owner/vendor before March, 2023, this option was not available, and by default, the payee bank account was set up as a consumer account.
To ensure that your owners and vendors are set up correctly, you need to go through your vendor/owner records and change them as needed (i.e. open the screen, select the checkbox, and save).
If you have a large number of records in your system, please start a chat with support so we can assist you.
Changing the Payment Method from Cheque to EFT
If you open a saved vendor or owner record, and change the Payment Method from Cheque to EFT, the EFT fields appear, including the Is Commercial Account checkbox. In this case, the checkbox has a default value:
For vendors, it is selected by default. You can deselect it if needed.
For owners, it is not selected by default. You can select it if needed.
The following series of screenshots gives examples.
Vendors
Here's a saved vendor record, with Payment Method set to Cheque.
When you open the record and change the Payment Method to EFT, the EFT fields appear and the Commercial Account option is selected by default.
