ACH Transaction Files #
Overview #
Pro-Pay offers the capability to create both Balanced and Unbalanced (Single entry) ACH Transaction files. This article explains the differences between these file types and provides guidance on when to use each format.
Key Concepts #
Balanced ACH Transaction Files #
Balanced ACH Transaction files include both debit and credit entries, with the total debits equaling the total credits. These files provide a complete picture of all transactions, including the Payroll Processor’s account activity.
Unbalanced ACH Transaction Files #
Unbalanced ACH Transaction files do not include the Payroll Processor’s debit and credit entries. They may contain only debits or only credits, and the totals may not balance within a single file.
File Format Selection #
Before submitting a file to your Bank or 3rd Party ACH Processor, verify which format they accept. Some institutions may require balanced files, while others may accept unbalanced files.
Examples #
Balanced ACH Transaction File Example #
Settlement Date | Trans Type | Explanation | Debit | Credit |
---|---|---|---|---|
01/01/09 | DRAFT | Employer’s account is debited | 6,000.00 | |
01/01/09 | Processor Credit | Payroll Processor’s Bank account is credited | 6,000.00 | |
01/07/09 | PROC_DEBIT | Payroll Processor’s Bank account is debited | 3,000.00 | |
01/07/09 | 941 _Tax Payment | IRS’s Bank account is credited | 3,000.00 | |
02/15/09 | PROC_DEBIT | Payroll Processor’s Bank account is debited | 2,000.00 | |
02/15/09 | STWT _Tax Payment | State’s Bank account is credited | 2,000.00 | |
03/31/09 | PROC_DEBIT | Payroll Processor’s Bank account is debited | 1,000.00 | |
03/31/09 | SUI _Tax Payment | STATE’s Bank account is credited | 1,000.00 | |
TOTALS | 11,000.00 | 11,000.00 |
Unbalanced ACH Transaction File Examples #
Example 1: #
Settlement Date | Trans Type | Explanation | Debit | Credit |
---|---|---|---|---|
01/01/09 | DRAFT | Employer’s account is debited | 6,000.00 | |
01/07/09 | 941 _Tax Payment | IRS’s Bank account is credited | 3,000.00 | |
TOTALS | 6,000.00 | 3,000.00 |
Example 2: #
Settlement Date | Trans Type | Explanation | Debit | Credit |
---|---|---|---|---|
02/15/09 | STWT _Tax Payment | State’s Bank account is credited | 2,000.00 | |
03/31/09 | SUI _Tax Payment | STATE’s Bank account is credited | 1,000.00 | |
TOTALS | 0.00 | 3,000.00 |
When to Use Unbalanced Files #
Unbalanced ACH files are useful when:
- The debit to the employer has a different settlement date than the credits to the beneficiaries.
- Transactions need to be split into different files due to timing or other requirements.
Troubleshooting #
If you encounter issues with your ACH transaction files, try the following:
- Verify that you’re using the correct file format (balanced or unbalanced) as required by your bank or ACH processor.
- Double-check all dates, amounts, and account numbers for accuracy.
- Ensure that balanced files have matching total debits and credits.
- For unbalanced files, confirm that all necessary transactions are included, even if split across multiple files.
Additional Help #
For further assistance with Pro-Pay ACH transaction files:
- Access the help menu within the ProPay payroll software.
- Visit our website at https://www.Paysoft.com for additional resources and support.
Feedback #
We value your input! If you have suggestions for improving this knowledge base article or need clarification on any points, please contact our support team through the ProPay software or website.