Chapter. Chapter 4: Banking

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Clemence Chapman
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1 Chapter 4 Chapter 4: Banking

2 Chapter Banking Methods

3 Banking Methods This chapter of the WinFlexOne Administrative Guide discusses the following: Two types of banking methods: 1. plan service provider account and 2. client bank account, with a discussion of each method. WinFlexOne setup for PSP account and Client bank account WinFlexOne setup for ACH disbursements Customization of printed check format and contents Banking Methods Defined PSP Banking To best explain PSP Banking let s first define the term PSP. PSP stands for Plan Service Provider. A Plan Service Provider (PSP) is the term that we use for the plan administrator. MHM Resources is a PSP. So when you see the term PSP in WinFlexOne it can be assumed that this is a process involving the administrator of the plan. In PSP Banking the monies used to cover plan participant disbursements are taken from a bank account(s) controlled by the PSP. The PSP may specify as many as 4 separate accounts in WinFlexOne for the purposes of Account Funding, Check Disbursements, ACH Disbursements and Debit Card settlement. Critical to the PSP Banking process is the way the PSP bank account is funded. Typically this funding is associated to an event that occurs in plan administration such as Contributions or Disbursements processing. WinFlexOne provides automation to account funding if PSP account funding is triggered by Contributions processing. This is done in the form of an ACH file that is created to pull money from the Plan Sponsors bank account into the PSP s account. In this banking method account reconciliation becomes the responsibility of the PSP. WinFlexOne provides account reconciliation aids for both the funding side and the disbursement side. Why use PSP Banking? While it is true the PSP Banking is more complicated it allows the PSP to have more control over the Disbursement process and accounts payable. Taking full advantage of this, MHM Resources provides daily disbursements processing for those clients that take advantage of the PSP Banking method. MHM Resources calls this Rapid Claims Processing and because of the daily disbursements process it is not uncommon for claims to be processed and disbursements created within 24 hours of receipt. Client Banking In Client Banking the monies used to cover plan participant disbursements are taken from a bank account(s) controlled by the Client or Plan Sponsor. The Client may specify as many as 2 separate accounts in WinFlexOne for the purposes of Check Disbursements and ACH Disbursements. Because the PSP doesn t control the disbursement account, the PSP is not involved in the funding of the disbursement account(s). As a result the PSP should have none of the reconciliation responsibilities that exist in the PSP Banking method. This can be a much less complicated banking method for the PSP. MHM Resources calls its Client Banking method WAS (Weekly Accounting Service). Because the WAS accounts must be reconciled and funded by the client, disbursements occur only once a week for these clients. There are two methods of disbursing funds from either the PSP or Client bank account. The WinFlexOne system will print checks on blank check stock, or create electronic files that transfer money from one account to another. Printing checks and electronic files may be used together for any single company CONFIDENTIAL 2005 MHM Resources Inc.

4 Chapter PSP Banking Setup

5 Bank Account Setup PSP Banking Setup Trust Document Keeps bank account assets out of TPA s general assets. Protects the employer s general funds. Cash Receipts Checks from clients. Inbound cash wires from clients. ACH from client bank account on payroll date. All bank accounts, including the PSP accounts, are set up in the procedures described in this section. PSP Banking Setup PSP Banking is established in three locations. PSP Bank Accounts are loaded at Edit Bank Account. PSP Bank Accounts must be linked to four separate banking functions. o Contributions o Check Disbursements o ACH Disbursements, and o Debit Card Funding. The PSP Banking Method is designated in Company Information, CONFIDENTIAL 2005 MHM Resources Inc.

6 Select the button from the main menu CONFIDENTIAL 2005 MHM Resources Inc.

7 PSP Banking Setup (cont.) Select the button from the Administrative Options menu CONFIDENTIAL 2005 MHM Resources Inc.

8 PSP Banking Setup (cont.) Select the CASH MANAGEMENT tab. These are global settings that will effect all companies entered in the WinFlexOne system CONFIDENTIAL 2005 MHM Resources Inc.

9 PSP Banking Setup (cont.) Admin Bank Accounts Setting: o Account Use For: There are 4 banking processes that can be linked to specific bank accounts. 1 - Contribution Acct 2 - Check Disbursement 3 - ACH Disbursement 4 - Debit Card Funding Use the dropdown list at the end of the field to select the account type. o Account Number: Select the account number that will be used for the banking process identified in the Account Use For field. Click on the dropdown list arrow at the end of the field and select a bank account loaded previously in Banking>Bank Account Setup CONFIDENTIAL 2005 MHM Resources Inc.

10 PSP Banking Setup Company Setup Select the button from the main menu CONFIDENTIAL 2005 MHM Resources Inc.

11 PSP Banking Setup Company Setup (cont.) Select the button from the Accounts Setup menu CONFIDENTIAL 2005 MHM Resources Inc.

12 PSP Banking Setup Company Setup (cont.) Click the button to add a new company. Company Name*: Can be up to 64 characters, Alpha Numeric. o The company name in WinFlexOne should match the name on the companies plan document. The name will appear on reports and checks depending on the company banking setup. To determine if the company name will appear on the checks, see Banking Information setup. Company Code*: Can be up to 8 Characters, Alpha Numeric. o The company code is used by the employer to access the employer website, ef:exonline.com. This code will also appear on reports. Once company name and code are complete, click on the button CONFIDENTIAL 2005 MHM Resources Inc.

13 PSP Banking Setup Company Setup (cont.) Select the button from the Company Information screen CONFIDENTIAL 2005 MHM Resources Inc.

14 PSP Banking Setup Company Setup (cont.) Select the Use Service Provider s Account for Processing. Funds Transfer Method o Pull: Money is pulled via ACH from the Plan Sponsor s bank account to the PSP s account. If this option is selected the following must be identified: Company Funding Account: This is the Plan Sponsor s bank account that funds are pulled from. Use the dropdown list to select from accounts entered in Banking>Bank Account Setup. o ACH TransCode: This is the transaction code that will be applied to the ACH file that is created. 27: Pulls money from the Plan Sponsors account to the PSP s account. PSP Consolidated Account: This is the PSP s bank account that funds are deposited into. Use the dropdown list to select from the accounts entered in Banking>Bank Account Setup. o ACH TransCode: This is the transaction code that will be applied to the ACH file that is created. 22: Deposits money into the PSP s Consolidated Account CONFIDENTIAL 2005 MHM Resources Inc.

15 PSP Banking Setup Company Setup (cont.) Funds Transfer Method: o o o o Pull: Funds pulled via ACH from the Plan Sponsors bank account to the PSP s account. Check: Funds will be pushed to the PSP s account via Check by the Plan Sponsor. Wire: Funds will be pushed to the PSP s account via wire transfer by the Plan Sponsor. ACH: Funds will be pushed to the PSP s account via ACH transfer by the Plan Sponsor CONFIDENTIAL 2005 MHM Resources Inc.

16 PSP Banking Setup Company Setup (cont.) Additional Bank Settings o Company ID: The Company Identification is an alphanumeric code used to identify the Plan Sponsor. The Company ID should begin with the ANSI one-digit Identification Code Designators (IC), followed by the identification number. The ANSI Identification Numbers and related Identification Code Designators (ICD) are: 1 + the IRS Employer Identification Number (EIN). 3 + the Data Universal Numbering System (DUNS). 9 + User Assigned Number CONFIDENTIAL 2005 MHM Resources Inc.

17 PSP Banking Setup Company Setup (cont.) Additional Bank Settings (cont.) o o o Entry description: This is the entry description that participants will see on their bank statement required for all Banking Methods. Minimum Check Amount: Applies to Checks, ACH Disbursements and Disbursement Registers. Establishes a point below which pending accumulated disbursement amounts per participant will not be processed for payment. Print signature on check: Activates the option to print scanned signatures on checks. The path to the signature scan is recorded at Banking>Bank Account Setup CONFIDENTIAL 2005 MHM Resources Inc.

18 PSP Banking Setup Company Setup (cont.) Info on check: o o C: Displays Companies name, address, city, state, and zip on the check. A: Displays the Administrators name (Licensee Name) and address (Administrator s Address) on the check. The Licensee Name is loaded at Administrative Options>Administrative Tools>SYSTEM. The Address lines are loaded at Administrative Options>Administrative Tools>ADMIN CONTACT CONFIDENTIAL 2005 MHM Resources Inc.

19 PSP Banking Setup Company Setup (cont.) Additional Bank Settings (cont.) o o Create detail (record type 6) offset record: Only used in the PSP Method if the Immediate Destination requires a balanced file. Use Company s Company ID instead of the PSP s for (Record Type 5/8) Batch Header/Control: Select this option to use the Company ID entered on this screen instead of the PSP ID (entered at Administrative Options>Administrative Tools>CASH MANAGEMENT) because of Immediate Destination preference CONFIDENTIAL 2005 MHM Resources Inc.

20 Select the button from the main menu CONFIDENTIAL 2005 MHM Resources Inc.

21 PSP Banking Setup (cont.) Select the button from the Banking Options menu CONFIDENTIAL 2005 MHM Resources Inc.

22 PSP Banking Setup (cont.) All bank accounts on this screen are ordered by Transit Number. The names of the banks are displayed to the right of the fractional transit numbers. The bank account is a sub set of each Transit Number. Adding a new bank account to WinFlexOne will take one of two forms. The bank Transit Number is not on the list and the user will need to add it and then the account. Or the bank transit number has been previously entered so the user will need only to add a new account. Adding a new Bank Account for a Transit Number that is not listed. o Click the button to add a new bank transit number and account number. You will notice there is no Delete function on this screen. Once a bank account is established and transactions attached to that account, all bank accounts utilized must be maintained by the system CONFIDENTIAL 2005 MHM Resources Inc.

23 PSP Banking Setup (cont.) Transit Number: The transit number for the Bank. WinFlexOne will validate. Bank Name: The name of the bank. Address 1: The first address line for the bank. Address 2: The second address line for the bank. City: The city the bank is located in. State: The state the bank is located in. Zip Code: The bank s zip code. Phone: The bank s phone number. Fax: The bank s FAX number. Fractional Transit 1: The fractional transit number above the line or in front of the slash. Fractional Transit 2: The fractional transit number below the line or behind the slash. Click the button to save the transit number CONFIDENTIAL 2005 MHM Resources Inc.

24 PSP Banking Setup (cont.) The new bank account and transit number are on the list. To add an account to this transit number, click the checkbox in the SEL (SELect) column in front of the transit number. Click the + in the E (expand) column to see the list of accounts CONFIDENTIAL 2005 MHM Resources Inc.

25 PSPBanking Setup (cont.) Click the button CONFIDENTIAL 2005 MHM Resources Inc.

26 PSP Banking Setup (cont.) Account Number: The account number of this bank account. First Check Number: The beginning check number for this account. This is a required entry even if the account is to be used as a PSP Contributions Funding account. Next Check Number: The next check number that will be used in the disbursement process. If this is a new account then the First Check Number and the Next Check Number will be the same. Incremental Factor: The rate at which the check number will increase. The number one is typically used. Signature File: This is the Path and Name of the signature that is to be used on checks written from this account. Click the button to add this account to the Transit number selected CONFIDENTIAL 2005 MHM Resources Inc.

27 PSP Banking Setup (cont.) Adding a new Bank Account for a Transit Number that is already listed o o Click on the checkbox in the SEL column in front of the appropriate Transit Number. Click on the + in the E column to expand a list of accounts associated to the Transit Number selected CONFIDENTIAL 2005 MHM Resources Inc.

28 PSP Banking Setup Adding a New Account (cont.) In the view above is list accounts associated to the Transit Number selected. Click the button CONFIDENTIAL 2005 MHM Resources Inc.

29 PSP Banking Setup Adding a New Account (cont.) Account Number: The account number of this bank account, six to eleven digits. First Check Number: The beginning check number for the bank account selected. This is a required entry even if the account is to be used as a PSP Contributions Funding account. Next Check Number: The next check number that will be used in the disbursement process. If this is a new account then the First Check Number and the Next Check Number will be the same. Incremental Factor: The rate at which the check number will increase. The number one is typically used. Signature File: This is the Path and Name of the signature that is to be used on checks written from this account. A signature file is a scanned image of the signature for this account. You may assign more than one bank account to a single signature file. Click the button CONFIDENTIAL 2005 MHM Resources Inc.

30 PSP Banking Setup Editing an Existing Account To modify an existing Transit Number click in the SEL checkbox. Click the button CONFIDENTIAL 2005 MHM Resources Inc.

31 PSP Banking Setup Editing an Existing Account (cont.) Changes to the name of the bank, bank address, phone, fax, and Fractional Transit numbers can be made. The Transit Number is locked and cannot be edited. Click the button to retain changes CONFIDENTIAL 2005 MHM Resources Inc.

32 PSP Banking Setup Editing an Existing Account (cont.) To modify an existing account click in the SEL checkbox in front of the desired Transit Number. Click the + to expand the list of accounts. Highlight the account to be modified. Click the button CONFIDENTIAL 2005 MHM Resources Inc.

33 PSP Banking Setup Editing an Existing Account (cont.) Note: Changes can now be made to the bank account. Note that the Transit Number and the Account Number are locked and cannot be edited. Click the button to retain changes. WARNING: WinFlexOne does not tolerate the duplication of check numbers in a Bank Account. Do not reduce the number in the Next Check Number field to a value that is less than the highest check number used to date. Ignoring this warning can cause the Disbursement Post processes to fail CONFIDENTIAL 2005 MHM Resources Inc.

34 Chapter Client Banking Setup

35 Client Banking Setup Client Banking assumes that the PSP will be writing checks and ACH disbursements against the Client s (Plan Sponsor s) bank account(s). Client Banking is established in two areas: Client Bank Accounts are loaded at Banking. The Client Banking Method is designated in Company Information. Select the button from the main menu CONFIDENTIAL 2005 MHM Resources Inc.

36 Client Banking Setup (cont.) Select the button from the Banking Options menu CONFIDENTIAL 2005 MHM Resources Inc.

37 Client Banking Setup (cont.) All bank accounts on this screen are ordered by Transit Number. The names of the banks are displayed to the right of the fractional transit numbers. The bank account is a sub set of each Transit Number. Adding a new bank account to WinFlexOne will take one of two forms. The bank Transit Number is not on the list and the user will need to add it and then the account. Or the bank transit number has been previously entered so the user will need only to add a new account. Adding a new Bank Account for a Transit Number that is not listed. o Click the button to add a new bank transit number and account number. You will notice there is no Delete function on this screen. Once a bank account is established and transactions attached to that account, all bank accounts utilized must be maintained by the system CONFIDENTIAL 2005 MHM Resources Inc.

Client Banking Setup (cont.) Transit Number: The transit number for the Bank. WinFlexOne will validate. Bank Name: The name of the bank. Address 1: The first address line for the bank.

38 Client Banking Setup (cont.) Transit Number: The transit number for the Bank. WinFlexOne will validate. Bank Name: The name of the bank. Address 1: The first address line for the bank. Address 2: The second address line for the bank. City: The city the bank is located in. State: The state the bank is located in. Zip Code: The bank s zip code. Phone: The bank s phone number. Fax: The bank s FAX number. Fractional Transit 1: The fractional transit number above the line or in front of the slash. Fractional Transit 2: The fractional transit number below the line or behind the slash. Click the button to save the transit number CONFIDENTIAL 2005 MHM Resources Inc.

39 Client Banking Setup (cont.) The new bank account and transit number are on the list. To add an account to this transit number, click the checkbox in the SEL (SELect) column in front of the transit number. Click the + in the E (expand) column to see the list of accounts CONFIDENTIAL 2005 MHM Resources Inc.

40 Client Banking Setup (cont.) Click the button CONFIDENTIAL 2005 MHM Resources Inc.

41 Client Banking Setup (cont.) Account Number: The account number of this bank account, six to eleven digits. First Check Number: The beginning check number for this account. This is a required entry even if the account is to be used as a PSP Contributions Funding account. You may enter the first check number that the PSP will utilize, or the first check number authorized for this account. This field is locked after first check is written from WinFlexOne. Next Check Number: The next check number that will be used in the disbursement process. If this is a new account then the First Check Number and the Next Check Number will be the same. This field is locked after first check is written from WinFlexOne. Incremental Factor: The rate at which the check number will increase. The number one is typically used. Signature File: This is the Path and Name of the signature that is to be used on checks written from this account. A signature file is a.bmp file that contains the scanned image of the signature for this account. You may assign more than one bank account to one signature file. Click the button to add this account to the Transit number selected CONFIDENTIAL 2005 MHM Resources Inc.

42 Client Banking Setup (cont.) Adding a new Bank Account for a Transit Number that is already listed o o Click on the checkbox in the SEL column in front of the appropriate Transit Number. Click on the + in the E column to expand a list of accounts associated to the Transit Number selected CONFIDENTIAL 2005 MHM Resources Inc.

43 Client Banking Setup Adding a New Account (cont.) In the view above is list accounts associated to the Transit Number selected. Click the button CONFIDENTIAL 2005 MHM Resources Inc.

44 Client Banking Setup (cont.) Account Number: The account number of this bank account, six to eleven digits. First Check Number: The beginning check number for the bank account selected. This is a required entry even if the account is to be used as a PSP Contributions Funding account. Next Check Number: The next check number that will be used in the disbursement process. If this is a new account then the First Check Number and the Next Check Number will be the same. Incremental Factor: The rate at which the check number will increase. The number one is typically used. Signature File: This is the Path and Name of the signature that is to be used on checks written from this account. A signature file is a.bmp file that contains the scanned image of the signature for this account. You may assign more than one bank account to one signature file. Click the button CONFIDENTIAL 2005 MHM Resources Inc.

45 Client Banking Setup Editing an Existing Account To modify an existing Transit Number click in the SEL checkbox. Click the button CONFIDENTIAL 2005 MHM Resources Inc.

46 Client Banking Setup Editing an Existing Account (cont.) Changes to the name of the bank, bank address, phone, fax, and Fractional Transit numbers can be made. The Transit Number is locked and cannot be edited. Click the button to retain changes CONFIDENTIAL 2005 MHM Resources Inc.

47 Client Banking Setup Editing an Existing Account (cont.) To modify an existing account click in the SEL checkbox in front of the desired Transit Number. Click the + to expand the list of accounts. Highlight the account to be modified. Click the button CONFIDENTIAL 2005 MHM Resources Inc.

Client Banking Setup Editing an Existing Account (cont.) Note: Changes can now be made to the bank account. Note that the Transit Number and the Account Number are locked and cannot be edited.

48 Client Banking Setup Editing an Existing Account (cont.) Note: Changes can now be made to the bank account. Note that the Transit Number and the Account Number are locked and cannot be edited. Click the button to retain changes. WARNING: WinFlexOne does not tolerate the duplication of check numbers in a Bank Account. Do not reduce the number in the Next Check Number field to a value that is less than the highest check number used to date. Ignoring this warning can cause the Disbursement Post processes to fail CONFIDENTIAL 2005 MHM Resources Inc.

49 Client Banking Setup Editing an Existing Account (cont.) Select the button from the main menu CONFIDENTIAL 2005 MHM Resources Inc.

50 Client Banking Setup (cont.) Select the button from the Accounts Setup menu CONFIDENTIAL 2005 MHM Resources Inc.

51 Client Banking Setup (cont.) Select a company from the list and click [A COMPANY] or double click on the Company line CONFIDENTIAL 2005 MHM Resources Inc.

52 Client Banking Setup (cont.) Select the button from the Company Information screen CONFIDENTIAL 2005 MHM Resources Inc.

53 Client Banking Setup (cont.) Use Company s Bank Account for Processing: is selected. o Account to write checks from: Click on the dropdown list to select a Bank routing number and account from the list created at Banking>Bank Account Setup. This will be the account that disbursement checks to Plan Participants will draw from. Account to ACH payments from: Click on the dropdown list to select a Bank routing number and account from the list created at Banking>Bank Account Setup. This will be the account that disbursement ACH files intended to pay Plan Participants will draw from. This can be the same account selected for the check writing account; o ACH Transcode: 27. Account for debit card: Click on the dropdown list to select a Bank routing number and account from the list created at Banking>Bank Account Setup. This can be the same account as selected for the check writing account and ACH account. o ACH Transcode: CONFIDENTIAL 2005 MHM Resources Inc.

54 Client Banking Setup (cont.) Additional Bank Settings o Company ID: The Company Identification is an alphanumeric code used to identify the Plan Sponsor. The Company ID should begin with the ANSI one-digit Identification Code Designators (IC), followed by the identification number. The ANSI Identification Numbers and related Identification Code Designators (ICD) are: 1 + the IRS Employer Identification Number (EIN). 3 + the Data Universal Numbering System (DUNS). 9 + User Assigned Number. Entry description: This is the entry description that participants will see on their bank statement required for all Banking Methods. Minimum Check Amount: Applies to Checks, ACH Disbursements, and Disbursement Registers. Establishes a point below which pending accumulated disbursement amounts per participant will not be processed for payment CONFIDENTIAL 2005 MHM Resources Inc.

55 Client Banking Setup (cont.) Additional Bank Settings (cont.) o Print signature on check: Activates the option to print scanned signatures on checks. The path to the signature scan is recorded at Banking>Bank Account Setup. Info on check o C: Displays Companies name, address, city, state, and zip on the check. o A: Displays the Administrators name (Licensee Name) and address (Administrator s Address) on the check. The Licensee Name is loaded at Administrative Options>Administrative Tools>SYSTEM. The Address lines are loaded at Administrative Options>Administrative Tools>ADMIN CONTACT. Create detail (record type 6) offset record: Used to communicate the bank account that is to be debited in a pass through ACH file. May also be used if the Immediate Destination requires a balanced file. Use Company s Company ID instead of the PSP s for (Record Type 5/8) Batch Header/Control: Defaulted to be active. Select this option to use the Company ID entered on this screen instead of the PSP ID (entered at Administrative Options>Administrative Tools>CASH MANAGEMENT) because of Immediate Destination preference CONFIDENTIAL 2005 MHM Resources Inc.

56 4.4 ACH Disbursement Setup Chapter 4

57 ACH Disbursement Setup The Automatic Clearing House (ACH) process is based on two principles. The first is that the PSP will establish a relationship with a Financial Institution (Bank) for the purposes of ACH file processing. The second is that PSP will use this ACH relationship to process ACH files that draw funds from both the PSP s Bank Account and the Client s Bank Account as necessary. Generally, the PSP will create certain electronic files. These files contain: 1.Who sent the file. 2. Who receives the file and 3. Who gets paid and how much. The file also contains the total transaction for that particular file. When sent to the PSP Bank, these files contain all the information the bank needs in order to 1) remove the needed funds from the correct bank and 2) move these funds to anther account(s). WinFlexOne utilizes NACHA (Automated Clearing House Network) standards for electronic files. The ACH Setup instructions contained in this section are representative of our best recommendations for the setup of this disbursement process. It is possible that the financial institution (Immediate Destination) that is used by the PSP for ACH processing may have requirements that alter the way the ACH fields are populated. Select the button from the main menu CONFIDENTIAL 2005 MHM Resources Inc.

58 ACH Disbursement Setup (cont.) Select the button from the Administrative Options menu CONFIDENTIAL 2005 MHM Resources Inc.

59 ACH Disbursement Setup (cont.) Select the CASH MANAGEMENT tab CONFIDENTIAL 2005 MHM Resources Inc.

60 ACH Disbursement Setup (cont.) Admin ACH Setting: o Company ID The PSP Identification is an alphanumeric code used to identify the PSP. The Company ID should begin with the ANSI one-digit Identification Code Designators (IC), followed by the identification number. The ANSI Identification Numbers and related Identification Code Designators (ICD) are: 1 + the IRS Employer Identification Number (EIN). 3 + the Data Universal Numbering System (DUNS). 9 + User Assigned Number o ACH Originating Number: This field contains the Routing Number of the ACH Operator or sending point that is sending the file. The 10-character field begins with a blank in the first position, followed by the four digit Federal Reserve Routing Symbol, the four digit ABA Institution Identifier, and the Check Digit (BTTTTAAAAC). This information can be obtained from the financial institution Account CONFIDENTIAL 2005 MHM Resources Inc.

61 ACH Disbursement Setup (cont.) ACH Originating Name: This field contains the name of the ACH Operator or the bank sending point from which the file is being sent. This will be the name of the bank that holds the PSP s ACH Disbursement account. ACH Destination Number: This field contains the Routing Number of the ACH Operator or receiving point to which the file is being sent. The 10-character field begins with a blank in the first position, followed by the four digit Federal Reserve Routing Symbol, the four digit ABA Institution Identifier, and the Check Digit (BTTTTAAAAC). This information can be obtained from the financial institution receiving the ACH file. ACH Destination Name: This field contains the name of the ACH or receiving point for which the file is destined. Include ACH Offset: This option creates an Off Set record on the PSP ACH file. This would be set if required by ACH Destination for the purposes of creating a balanced file CONFIDENTIAL 2005 MHM Resources Inc.

62 ACH Disbursement Setup Company Info Select the button from the main menu CONFIDENTIAL 2005 MHM Resources Inc.

63 ACH Disbursement Setup Company Info (cont.) Select the button from the Accounts Setup menu CONFIDENTIAL 2005 MHM Resources Inc.

64 ACH Disbursement Setup Company Info (cont.) Select a company from the list and click [A COMPANY] or double click on the Company line CONFIDENTIAL 2005 MHM Resources Inc.

65 ACH Disbursement Setup Company Info (cont.) Select the button from the company information screen CONFIDENTIAL 2005 MHM Resources Inc.

66 ACH Disbursement Setup Company Info PSP Use PSP s Bank Account for Processing: This banking method is selected. o Funds Transfer Method: Not relative to the ACH Disbursements settings. o Company Funding Account: Not relative to the ACH Disbursement settings. o PSP Consolidated Account: Not relative to the ACH Disbursement settings CONFIDENTIAL 2005 MHM Resources Inc.

67 ACH Disbursement Setup Company Info-PSP (cont.) Additional Bank Settings o Company ID: Typically not used in the PSP Banking Method. If required by the Immediate Destination this field should be populated in accordance to NACHA standards. The PSP Identification is an alphanumeric code used to identify the PSP. The Company ID should begin with the ANSI one-digit Identification Code Designators (IC), followed by the identification number. The ANSI Identification Numbers and related Identification Code Designators (ICD) are: 1 + the IRS Employer Identification Number (EIN). 3 + the Data Universal Numbering System (DUNS). 9 + User Assigned Number Entry description: This is the entry description that participants will see on their bank statement required for all Banking Methods CONFIDENTIAL 2005 MHM Resources Inc.

68 ACH Disbursement Setup Company Info PSP Additional Bank Settings (cont.) o o o Minimum Check Amount: Applies to Checks, ACH Disbursements and Disbursement Registers. Establishes a point below which pending accumulated disbursement amounts per participant will not be processed for payment. Print signature on check: Not relevant to ACH Setup. Info on check C: Displays Companies name, address, city, state, and zip on the ACH Stub. A: Displays the Administrators name (Licensee Name) and address (Administrator's Address) on the ACH Stub. The Licensee Name is loaded at Administrative Options>Administrative Tools>SYSTEM. The Address lines are loaded at Administrative Options>Administrative Tools>ADMIN CONTACT. o o Create detail (record type 6) offset record: Not used with PSP banking method. Use Company s Company ID instead of PSP s (record5/8) Batch Header/Control: Check this box to use the Company ID specified on this screen CONFIDENTIAL 2005 MHM Resources Inc.

69 ACH Disbursement Setup Company Info Client Banking Use Employer s Account for Processing: This banking method is selected. This will overwrite global settings. Funds are held in the Plan Sponsors account not the Plan Service Provider. No account reconciliation is completed by the Plan Service Provider. Disbursements Funds Handling o o Account to write checks from: Click on the dropdown list to select a Bank routing number and account for the list created at Utilities>Edit Bank. This will be the account that disbursement checks to Plan Participants will draw from. Account to ACH payments from: Click on the dropdown list to select a Bank routing number and account for the list created at Utilities>Edit Bank. This will be the account that disbursement ACH files intended to pay Plan Participants will draw from. This can be the same account selected for the check writing account CONFIDENTIAL 2005 MHM Resources Inc.

70 ACH Disbursement Setup Company Info Client Banking (cont.) Additional Bank Settings o Company ID: If required by the Immediate Destination this field should be populated in accordance to NACHA standards. The PSP Identification is an alphanumeric code used to identify the PSP. The Company ID should begin with the ANSI one-digit Identification Code Designators (IC), followed by the identification number. The ANSI Identification Numbers and related Identification Code Designators (ICD) are: 1 + the IRS Employer Identification Number (EIN). 3 + the Data Universal Numbering System (DUNS). 9 + User Assigned Number CONFIDENTIAL 2005 MHM Resources Inc.

71 ACH Disbursement Setup Company Info Client Banking (cont.) Additional Bank Settings (cont.) o o o Entry description: This is the entry description that participants will see on their bank statement required for all Banking Methods. Minimum Check Amount: Applies to Checks, ACH Disbursements and Disbursement Registers. Establishes a point below which pending accumulated disbursement amounts per participant will not be processed for payment. Print signature on check: Not relevant to ACH Setup CONFIDENTIAL 2005 MHM Resources Inc.

72 ACH Disbursement Setup Company Info Client Banking (cont.) o Info on check C: Displays Companies name, address, city, state, and zip on the ACH Stub A: Displays the Administrators name (Licensee Name) and address (Administrator's Address) on the ACH Stub. The Licensee Name is loaded at Administrative Options>Administrative Tools>SYSTEM. The Address lines are loaded at Administrative Options>Administrative Tools>ADMIN CONTACT CONFIDENTIAL 2005 MHM Resources Inc.

73 ACH Disbursement Setup Company Info Client Banking (cont.) Create detail (record type 6) offset record: This will typically be used with the Client Banking method. Use Company s Company ID instead of PSP s (record5/8) Batch Header/Control: Check this box to use the Company ID specified on this screen CONFIDENTIAL 2005 MHM Resources Inc.

74 Chapter Check Format

75 Check Format Select the button from the main menu CONFIDENTIAL 2005 MHM Resources Inc.

76 Check Format (cont.) Select the button from the Banking Options menu CONFIDENTIAL 2005 MHM Resources Inc.

77 Check Format (cont.) WinFlexOne allows users to customize the placement and content of items appearing on printed checks. Users may modify items that are within a predefined list of available check items. Available items are assigned item ID s based on the type of item. Items with ID numbers from are values that vary depending on the check being written, such as Company Name or Check Amount. Items do not use default values. Items with ID numbers from are text items; the default values may be edited on these items. Items with ID numbers from are lines; the default values must be two dashes ( ). List Headers o ID: Unique, identifying ID number for the check item. o Description: Brief description of the check item. o Default Value: Text that will be printed on this check item. o Enabled: Designates that this item will appear on printed checks. ACH Enabled: Designates that this item will appear on printed ACH stubs CONFIDENTIAL 2005 MHM Resources Inc.

78 Check Format (cont.) Buttons and Functional Fields o Check Position: Select from the dropdown list one of the three options: Check on top Check in the middle Check on the bottom Click the button to change the item selected. Click the button to print a sample of the check to screen or to a hard copy. Click the button to return to the Banking Options menu CONFIDENTIAL 2005 MHM Resources Inc.

79 Check Format (cont.) Select an item ID. Click the button CONFIDENTIAL 2005 MHM Resources Inc.

80 Check Format (cont.) Enabled o ON: places this item on a printed check. o OFF: this item will not appear on a printed check. ACH Enabled o ON: places this item on a printed ACH stub. o OFF: this item will not appear on a printed ACH stub. Values o Default Value: Text will be printed on the check.. Note: The field for Check Number is unavailable and cannot be edited. The check number is supplied by the System Check value or the next check number associated to a specific bank account. o Beginning Characters: Characters that will be added to the item s text at the beginning. A value of *** in the Beginning Characters field will print three asterisks before the text of the check item. o Ending Characters: Characters that will be added to the item s text at the end. A value of *** in the Ending Characters field will print three asterisks after the text of the check item CONFIDENTIAL 2005 MHM Resources Inc.

81 Check Format (cont.) Font o o o o Position o o o Name: The name of the font in use. Click on the dropdown list to see the available font choices. Size: The size of the font used for this check item. Bold/Italic/Underline: Designates formatting for the check item. Left/Center/Right: Designates which side of the starting point the text will be printed. For example, if Center is selected, the text will be centered on the starting point. The starting point is determined by the X and Y values under Position. X: Designates the item s horizontal placement on the check in inches. Y: Designates the item s vertical placement on the check in inches. Width: Designates the item s width in inches. A zero will size the item according to the text it contains CONFIDENTIAL 2005 MHM Resources Inc.

82 Check Format (cont.) To view a sample check select the button from the Check Item List CONFIDENTIAL 2005 MHM Resources Inc.

83 Check Format (cont.) Select the button to preview the check format CONFIDENTIAL 2005 MHM Resources Inc.

Client-Account Receivable

Nexsure Training Manual - Accounting Client-Account Receivable In This Chapter Client Accounts Receivable Entity Definition Receive Payments from Clients Relating to Policies Allocation of Payment Leave