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Streamlining Payments: Your Guide to ACH Payments in ProLaw

Efficient payment processing is key. For ProLaw users, the ability to generate NACHA (National Automated Clearing House Association) files directly within the system offers a powerful way to streamline electronic payments, saving time and reducing manual effort. This guide will walk you through the essential steps for configuring and using NACHA files in ProLaw, ensuring your firm can take full advantage of this robust functionality.

What are NACHA Files?

Essentially, NACHA files are a standardized format for electronic funds transfers (EFTs) through the Automated Clearing House (ACH) network. This network facilitates a wide range of electronic payments, including direct deposits, bill payments, and, in this case, payments to your vendors. By generating these files directly from ProLaw, you can automate your payment processes and enhance financial efficiency.

Prerequisites: Getting ProLaw Ready for NACHA

Before you can start creating NACHA files, there are a few crucial setup steps within ProLaw to ensure everything runs smoothly.

  1. Security Permissions: First things first, the professional logged into ProLaw needs the right permissions. Make sure the “Create ACH” checkbox is selected on the Journals tab of their Security class window. This grants them the necessary access to generate ACH files.
  2. Vendor ACH Enablement: For each vendor you plan to pay via ACH, you’ll need to enable the feature on their contact record. Navigate to the Vendors tab for the contact, select the “ACH” checkbox, and then enter the following vital information:
    • Routing Number: The vendor’s bank routing number.
    • Account Number: The vendor’s bank account number.
    • Company Code: A unique code for the vendor.
    • Company Id: Your law firm’s company ID or tax ID.
    • Email Id: The vendor’s email address.

Pro-Tip: If you want to send a remittance email to the vendor detailing their payment, ensure the “Create Remittance” checkbox is also selected on their Vendors tab.

  1. Account Setup: Your firm’s bank account details are crucial for generating accurate NACHA files. Go to Tools > Setup > Accounts and open the relevant Account record. You’ll need to fill in these mandatory fields:
    • Bank Name: The name of your bank.
    • Account No: Your bank account number.
    • Routing No: Your bank’s routing number.
    • New Ach No: Enter an initial ACH number. ProLaw will automatically update this field as you create NACHA files.
    • Check Format: This has to be changed to the custom NACHA report.
  2. NACHA File Download Location: Finally, designate where your generated NACHA files will be stored. From the Journals section, select Tools > Preferences, then go to the Export tab. In the “ACH Files Stored in” field, enter a valid path and click Save.

Creating Your ACH File in ProLaw

With the prerequisites handled, you’re ready to start generating ACH files for your vendor payments.

  1. Initiate a Journal Entry: Begin by creating a new Journal Entry. When you select a contact for whom ACH is enabled, the “ACH” checkbox will automatically be selected.
  2. Save the Entry: Enter the payment amount in the “Check (Cr)” field and click the Save button twice to finalize the entry.
  3. Generate the ACH File: From either the Tools menu or the shortcut icon on the left-side Tools menu, click “Create ACH file.”

The “Creating ACH” window will appear. A handy feature here is that if you have multiple entries for the same contact, ProLaw will merge them into a single entry within this window, simplifying your process.

  1. Select Entries for File Creation: In the “Creating ACH” window, simply select the rows for which you want to create the ACH file by checking the “Create?” checkbox.
  2. Create the File: From the left-side Action menu, click “Create File.” Once the process is complete, you’ll see the file path displayed in the status bar, confirming your NACHA file has been successfully generated. If you opted for it during setup, a remittance email will also be sent to the vendor.

What Happens After?

Once the ACH file is created and the “Create ACH” window is closed, the generated ACH number will be displayed in your Journal entries. A key point to remember: Contact details are not editable once the ACH number has been generated.

Depending on your version of ProLaw, the file may not automatically generate. It may give you a preview of a report. Which you will have to export to Word, make any necessary changes, and then save as a plain file txt file.

For auditing purposes, all ACH-related data is captured in the Audit Log, providing a clear trail of your electronic payment activities. You’ll also find new ACH-related columns, “Is ACH” and “ACH Number,” in the Query window, making it easy to track and report on your ACH payments.

This audit trail can be automatically deleted. Talk to us about how you can implement ForeverAudit and never lose this or any other audit records.

One Invoice Check Functionality

If a vendor has the “One Invoice check” option enabled, ProLaw will create individual ACH entries for them, mirroring the behavior of the “Print Check” functionality. This ensures that payments are processed according to the specific invoice requirements.

How NextPro Can Help

Your ProLaw may not be configured properly to generate the ACH files or remittance emails that are sent. Let us help you customize both of these for your banks and vendors.

Implementing NACHA file functionality in ProLaw can significantly improve your firm’s payment workflows. By following these steps, you can harness the power of electronic payments for greater efficiency and accuracy.

Do you have any specific challenges you’re looking to overcome with electronic payments in ProLaw?

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