(USA) Set up IAT ACH file parameters

Important

This content is archived and is not being updated. For the latest documentation, see Microsoft Dynamics 365 product documentation. For the latest release plans, see Dynamics 365 and Microsoft Power Platform release plans.

Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2, Microsoft Dynamics AX 2012 Feature Pack, Microsoft Dynamics AX 2012

The National Automated Clearing House Association (NACHA) and Office of Foreign Assets Control (OFAC) of the U.S Department of the Treasury have introduced a standard entry class code for International ACH Transactions (IAT). When you make payments to a vendor or refund a payment to a customer who is outside the United States, you must use this code in the transaction to denote the origin of the payment.

Complete the following tasks before you generate an IAT EFT file:

  • Set up information for your company in the Legal entities form. These details are used as the originator information when the IAT Electronic File Transmission (EFT) file is generated. For more information, see Legal entities (form).

  • Set up bank account details, such as Bank account, Routing number type, Routing number, and SWIFT code, for your company in the Bank accounts form. For more information, see Bank accounts (form) and .

  • Set up details for the vendor who receives the payment in the Vendors form. These details are used as the receiver or beneficiary information in the IAT EFT file. For more information, see Create a vendor account.

  • Set up bank account details for the vendor in the Vendor bank accounts form. These details are used as the receiver Depository Financial Institution (DFI) information in the IAT EFT file. For more information, see Vendor bank accounts (form).

  • Set up details for the customer who receives a refund in the Customers form. These details are used as the originator information in the IAT EFT file. For more information, see Create a customer record.

  • Set up bank account details for the customer in the Customer bank accounts form. These details are used as the originator DFI information in the IAT EFT files. For more information, see Customer bank accounts (form).

Set up a method of payment

Set up and assign a method of payment for a vendor or customer and select the NACHA IAT (US) file format as the export file format for the payment.

  1. Click Accounts payable > Setup > Payment > Methods of payment.

    –or–

    Click Accounts receivable > Setup > Payment > Methods of payment.

  2. Press CTRL+N to create a new payment method. For more information, see Set up a file format for a method of payment for vendors and Set up a file format for a method of payment for customers.

  3. In the Method of payment field, enter an appropriate identifier, such as NACHA IAT.

  4. Click the File formats FastTab and in the Export format field, select NACHA IAT (US).

    Note

    If the field list is empty, click Setup, and select NACHA IAT (US) from the available formats.

  5. Close the form to save your changes.

See also

(USA) Create a payment journal and generate the IAT transmission file