ACH Generation in Microsoft Dynamics 365 Business Central
- Abhisar Sharma
- Nov 24, 2025
- 6 min read
At Evolve Strategy & Capital Inc., we help professional-services organizations streamline financial operations and harness the full capability of Microsoft Dynamics 365 Business Central. One process we frequently implement for clients-yet often see misconfigured - is ACH (Automated Clearing House) payment automation. While Business Central offers robust ACH/EFT capabilities, the system requires precise setup, correct banking metadata, and a strict workflow sequence before it will generate compliant files.
This guide reflects Evolve’s hands-on implementation expertise across US NACHA formats and Canadian EFT structures, and is designed to help finance teams, controllers, and BC admins build a reliable, bank-approved ACH process end-to-end.
Company Information: The Required Foundation
For ACH/NACHA file generation, Business Central requires the Federal ID Number to be populated on the Company Information page.
Modern versions of BC will display a warning if this value is missing when attempting to generate the ACH export. However, at Evolve, we treat this as a mandatory first-step configuration to avoid export interruptions and ensure compliance.
Vendor Bank Accounts: The Most Critical Data Entry Area
Vendor bank account setup is the most common source of ACH failures. Business Central intentionally keeps these fields flexible to support multiple countries, but ACH/EFT generation depends on several fields being populated correctly.
Required Fields (for all regions)
To generate ACH/EFT files, the following fields must always be completed:
Code – Identifier for the bank account
Use “Bank” when a vendor has only one bank account
For multiple accounts, use a short, clear code (e.g., BMO, WF, CITI)
Name – The bank name
Country/Region Code
Routing Number (US) or Transit Number (Canada)
Bank Account Number
United States Requirements
Routing Number
Account Number
Country/Region Code
Code
Name
Canadian Requirements
Bank Code (3-digit institution number)
Transit Number (5-digit branch routing)
Account Number
Country/Region Code
Code
Name
On some occasions, based on the data exchange definition, Bank Branch No. is also required.
Required Toggle: “Use for Electronic Payments” under Transfer Fasttab.
Enable Use for Electronic Payments.This toggle is mandatory-if it is off, Business Central will not allow ACH/EFT exports for this bank account, even if all other fields are configured.
Evolve Expert Note: This is one of the most frequently overlooked configuration steps. Leaving it disabled causes the bank to disappear from ACH processing options.
Preferred Bank Account (Vendor Card → Payments fasttab)
After creating the vendor’s bank account, set the Preferred Bank Account Code under the Payments fasttab on the Vendor card.
This ensures:
Business Central automatically fills the Recipient Bank Account on Payment Journal lines
ACH generation does not fail due to missing recipient information
Your payment process remains consistent and efficient
Evolve Tip: Add “Preferred Bank Account validation” to your vendor onboarding checklist to prevent downstream errors.
Data Exchange Definitions: The Core of ACH/EFT Output
The Data Exchange Definition determines how Business Central structures the ACH/NACHA or EFT file. This is one of the most important components of ACH setup.
Out-of-the-Box Options
US EFT Default – Works for most NACHA-compliant US banks.
CA EFT Default – A starting point, but typically requires modifications.
Payment Transaction Code / Entry Class Code
ACH files must include an Entry Class Code at the Header level of the data exchange definition that identifies the transaction type. Common codes:
CCD – Corporate payments
PPD – Consumer payments
CTX – Corporate with addenda
Your bank will specify the required code. If your BC file uses the wrong value, the ACH upload will be rejected even if everything else is correct.
Where to Update It
Data Exchange Definitions → [Your EFT Definition] → Line Definitions → Header B → Column Definitions → Entry Class Code mapping
Evolve Expert Note: This is one of the most common edits we make during US ACH implementations.
Canadian EFT Complexity
Canada does not follow a unified ACH standard. Each bank has its own:
Header structure
Field lengths
Client number requirements
File naming rules
Addenda formats
Canadian EFT often requires:
Customized mapping
Additional client identifiers
Header refinements
Occasional developer extensions
Evolve Tip: If migrating from GP or SL, provide your existing EFT file. We can replicate the exact format inside Business Central.
Bank Account Configuration in Business Central
Configuring the Bank Account Card correctly is essential for ACH/EFT processing. Business Central uses fields under both the Transfer and Posting fasttabs to determine export eligibility and sequencing.
Transfer Fasttab (Required for ACH/EFT)
On the Bank Account Card → Transfer fasttab, complete:
Payment Export Format – Select your ACH/EFT Data Exchange Definition
Country Export Format
E-Pay Export File Name
Last E-Pay File Creation No.
Client No. (Canada only)
Client Name (Canada only)
Transit No.
Posting Fasttab (Remittance Tracking)
Under the Posting fasttab, fill: Last Remittance Advice No. This ensures BC generates remittances with proper sequencing and audit integrity.
Payment Journal Processing: ACH Processing
ACH payment processing in Business Central requires the Payment Journal to be configured and handled in a specific sequence.
Dedicated ACH Batch
Create a separate Payment Journal batch with:
Bal. Account Type = Bank Account
Bal. Account No. = Your ACH bank account code
A separate batch keeps ACH cleanly separated from check payments and manual transfers.
Processing Vendor Payments Through the Payment Journal
Once your vendor and bank configurations are complete, you can move on to processing payments through the Payment Journal. The overall workflow is similar to processing check payments or any standard vendor payment, but a few ACH-specific considerations apply. Below is the complete, end-to-end process as we use it at Evolve.
1. Create an ACH-specific Payment Journal batch
Navigate to the Payment Journal and create a new batch dedicated to ACH payments. For clean separation between payment types, we recommend maintaining distinct batches for ACH, checks, wires, and manual payments.
In the batch setup:
Set Bal. Account Type = Bank Account
Set Bal. Account No. = the bank account you intend to use for ACH
2. Generate payment lines
Inside the batch, go to Prepare → Suggest Vendor Payments. Enter the required parameters- such as due dates, available discounts, and vendor filters, and select Ok. Business Central will automatically populate the journal with the payable invoices that meet your criteria. If you only have a small number of payments, you can also enter the lines manually.
3. Confirm the Recipient Bank Account
Every ACH payment line must contain a valid Recipient Bank Account. This value comes from the Vendor Bank Account you configured earlier. If you set the Preferred Bank Account Code on the Vendor Card, Business Central will automatically default this value onto the payment line.
4. Set the Bank Payment Type to Electronic Payment
On each payment line, ensure that Bank Payment Type = Electronic Payment. This is mandatory-without it, Business Central will not treat the line as an ACH transaction and the export will fail.
Step 1 - Generating Remittance Advice (Mandatory)
Business Central requires remittance advice to be printed or emailed before allowing ACH export.
Required Steps
1. Open the Payment Journal
2. Go to Bank → Export
3. BC prompts for the Vendor Remittance report
4. Choose Print or Email
o Print: generates a PDF for your records
o Email: sends directly to vendors
5. Preview does NOT count and ACH export will remain blocked
This step internally flags the payment lines as “ready for export.”
Step 2 - Generating the ACH / EFT File
After generating remittances:
1. Select More Options → Actions → Functions → Generate EFT File
2. Review the Generate EFT Files window
3. Select payment lines
4. Click Generate EFT Files
Evolve Tip: Generate one consolidated file to minimize bank upload fees and processing delays.
Troubleshooting & Error Handling
BC’s pop-up messages are often vague. The Payment File Errors factbox (on the Payment Journal) provides the true, detailed error descriptions.
Common causes:
Missing Country/Region Code
Incorrect routing/transit formatting
Missing Payment Export Format
Wrong Entry Class Code
Remittance not generated
Incomplete vendor bank details
This factbox is the first place Evolve technicians look when diagnosing ACH issues.
Bank Coordination & Testing
Many banks require configuration steps before accepting ACH files:
ACH upload permissions
Enhanced business account tier
Test file validation
Evolve Recommended Testing Process
Use:
A real internal or employee bank account
A $1 live test payment
A real ACH/EFT file generated from BC
Banks validate routing/account formats using real data - not sample placeholders.
Email Remittances Setup
To enable email remittance notifications:
Configure outgoing email under Business Central
Assign the Vendor Remittance email scenario
Without the correct email scenario assignment, remittances will not send.
Final Thoughts from Evolve
ACH processing in Business Central is extremely reliable once the configuration is completed correctly. While BC does provide some warnings-such as missing Federal ID - many other requirements rely on precise implementer knowledge.
At Evolve Strategy & Capital Inc., we design fully compliant, bank-approved ACH/EFT processes tailored for both US and Canadian organizations. With structured vendor data, accurate bank configuration, and disciplined journal processing, ACH becomes one of Business Central’s most efficient payment methods.
Ready to Streamline ACH in Microsoft Dynamics 365 Business Central?
Evolve Strategy & Capital Inc. delivers complete ACH/EFT implementation and optimization services, including:
ACH/EFT setup & testing
Canadian EFT definition customization
Data Exchange mapping corrections
Payment automation architecture
GP/SL → BC migration for ACH processes
Comprehensive finance operations tuning
📩 Email: connect@evolvegroup.ai
🌐 Website: www.evolvegroup.ai