Steps for setting up your NACHA file:
The internal entities that are sending the distributions can be found by following these steps:
1. Click Entities on the top navigation panel.
2. Select the arrow next to the desired entity and click Edit.
3. Then select the tab for Bank Accounts.
4. Select + Add Bank Account.
5. Fill in the information at the top of the form
To generate a NACHA file you will need to input the fix fields under the ACH Information. The seven fields at the bottom of the Edit Bank Account screen: ACH Information, need to be completed with information provided by your bank.
Investors who want to receive payments via ACH should be marked as such in their Investor Profiles with correct ABA and Account numbers. Incorrect ABA numbers will result in a failed NACHA export. For information on these seven fields, please see the definitions below:
Definitions of the seven fields found under ACH Information:
The "Immediate Destination Name", the name of the ODFI (Originating Depository Financial Institution), an example could be "Federal Reserve Bank"
The "Immediate Origin Name", an example could be "My ABC Bank"
The "Company Name", this will be the entity name
ACH Entry Description
The "Company Entry Description", an example could be "Distributions"
ACH Routing Number
The "Immediate Destination", ODFI's routing number. Must be 9 digits.
ACH Company EIN
The 9-digit EIN (enter without any dashes).
ACH Immediate Origin
The "Immediate Origin", is a 9-digit number usually the company’s EIN (enter without any dashes) or A 10-digit number assigned to <the sponsor> by the ODFI once they approve them to originate ACH files through them. If 10-digit number there is typically a number assigned to be input prior to the company’s EIN (ex. 5xxxxxxxxx).
Why is an investor not showing up on the NACHA file?
In order for an investor to be included on the file:
- ACH send method - when you look at the list of investor profiles on the distribution batch details page, the send method must show as "ach" for the investor
- The investor must have a valid name. For individuals, the must have a first and last name more than 2 characters, and entities must have a legal_name greater than 2 characters
- The investor must have a value in the encrypted/decrypted aba_number field
- The investor must have a value in the encrypted/decrypted account_number field
note* - we have seen cases where the application "looks" like we have the data, but there was no data in the encrypted/decrypted fields for these
What is a "balanced" NACHA file and how do I get one?
By default, IMS generates an unbalanced ACH file.
- A balanced ACH file contains both credits and debits - the totals of which offset one another. By default, IMS will create an ACH file that contains ONLY the transactions that were specified as Send Method "ACH". However, in a balanced file, there will be an additional transaction entry line which will contain the offsetting total debit (it will add up all of the transactions and place that amount in the offset entry record).
In order for IMS to generate a balanced file, a record must be entered into the Bank Routing Numbers table, with the routing number matching the routing number for the bank being used to generate the NACHA file. When you enter the bank routing number, the name of the bank will be displayed below the routing number if it is a known bank routing number in IMS. Otherwise, you will need to provide IT support with the Bank Name and routing number so that can be entered into the system.
**Note - the "ACH Routing Number" field MUST match the known routing number that we have entered into the Bank Routing Numbers table. The system should show an indication that we recognize that routing number, and when performing the export - the menu will show "Export Custom NACHA", as opposed to the normal "Export NACHA"
Why is the EXPORT NACHA button disabled?
The status of the batch MUST be "Ready to Distribute"
1) If the batch is at "draft", then no team members will be able to pull a NACHA via import data
2) If the batch is at "ready to distribute", then only the default distributor can pull the NACHA via import data. For additional information on how to set up a team member with permissions to process distributions, please click here.
3) If the batch is "distributed", then anyone can pull NACHA via import data.
Why is the NACHA file itself not generating?
The answer is usually bad data - but you can look deeper into the actual error:
Before clicking the export NACHA button, open the dev tools inspector in your browser (right click on the page, and choose "Inspect")
Click on the "Network" tab/section of the dev tools
now click the export NACHA, and click the red "export NACHA" link in the network tab - this should give you additional details. Most likely something like this:
"****100 did not meet reg expression d\9" -
This is usually telling you that this number is less than the required (9) digits for the field length - you can then look in a tableau report to determine the investor name.
For a guide on NACHA formatting, click here.