Automated Clearing House (ACH) - Direct Deposits
All NDSU Accounts Payable checks and ACHs are generated by the Accounting Office each morning based on Accounts Payable Vouchers and Travel Expense Vouchers that are successfully processed the previous day.
Checks, along with any remittance materials, are mailed by the Accounting Office directly to the vendor or employee the day the check is generated. The Accounting Office also mails a remit advice, with appropriate remittance materials, to the customers paid via ACH.
ACHs will be in the customer’s bank account the second business morning after the AP Vouchers are successfully processed. For example: If an AP Voucher or Travel Expense Voucher is successfully entered on Monday, the money should be in the customer’s bank account by no later than 9:00 am, Wednesday.
Question: What happens when the bank account is closed?
Answer: What happens mostly depends upon the bank. In some cases, the bank will reopen the account and deposit the money. In most cases, the bank will electronically return the money to NDSU's bank account and notify the NDSU Accounting Office. This will take from one to five days, depending on the bank. When the Accounting Office receives notification that money is returned they will follow-up and get payment to the customer by check, as soon as possible. If the Accounting Office shows a direct deposit was made and the funds have not been returned to NDSU, customers can contact their bank to follow-up on what the bank did with the money.
When a payment is processed through the Accounting Office, on a receiving report, accounts payable voucher, or travel voucher, the goal in the Accounting Office is for an NDSU payment to be mailed from one to three working days following receipt of the proper form in the Accounting Office.
While this goal is adhered to as often as possible, periods of heavy volume, holidays, etc., as well as other circumstances, could delay payments to vendors. The originating department should consider such factors when requesting payments to vendors or individuals.
Emergency payments that are to be expedited should be so noted on the form and must be received in the Accounting Office by 12:00 (noon) to be eligible or the next morning check printing run.
Vendors are signed up for the ACH payment method through Vendor Registry in Bismarck. If employees want to be signed up for ACH for travel or other reimbursements, they should complete the ACH Direct Deposit Authorization Agreement on the HR/Payroll Office web site. (Make sure to check the applicable boxes on this form.)
Once the direct deposit authorization is in effect, all payments will automatically be deposited into the bank account designated on the form. At least ten days are needed between the receipt of this form and the effective payment date for this authorization. Once the employee or vendor is set-up for ACH deposits, there is no need to complete a new form; unless the bank account information changes, the account is closed, or the financial institution is changed.