EFT Module in Sage X3

EFT(Electronic Funds Transfer) is the digital movement of money from one bank account to another without the use of paper documents, checks, or cash. It’s a fast, secure, and efficient way to send or receive funds.

Electronic Funds Transfer with ERP means integrating digital payment capabilities into your Enterprise Resource Planning (ERP) system so that you can automate and manage financial transactions (like supplier payments, payroll, refunds, etc.) directly from your ERP.

In Sage X3, we have developed a new module “EFT Engine” to fulfill client’s requirement of managing financial transactions using Sage X3. Refer below screenshot Fig. 1.

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[Fig 1. EFT Engine Module in Sage X3]

We will now check the functionality of each screen in the EFT Engine, one by one.

The screens are divided into three main parts, based on functionality requirements:

1. EFT Setup
2. EFT Process
3. Bank Statements

1. EFT SETUP: The EFT Setup section includes all necessary configurations required before initiating any electronic fund transfers. This ensures that the system is aligned with bank requirements and organizational policies.

a. SFTP Configuration: SFTP (Secure File Transfer Protocol) is used to securely transmit EFT payment files from the ERP system to the bank’s server. Proper SFTP configuration ensures encrypted, reliable, and automated transfer of sensitive financial data.

[Fig 2. SFTP Configuration screen]

User has to set following details for SFTP configuration using this screen:

Component	Description
SFTP HOST Name	The host address (IP or domain) of the bank’s SFTP server.
Port Number	Typically port 22 (default for SFTP), unless the bank specifies another.
Authentication Method	Usually done via username/password or more securely with SSH key-based authentication.
Folder Path	The directory on the bank’s server where EFT files should be uploaded. The bank might also provide a path for downloading confirmation or status file

b. Bank File Definitions screen: Bank file definitions refer to the structure, format, and rules used to generate electronic payment files that are sent to the bank for processing via EFT (Electronic Funds Transfer). These files must comply with the bank’s specific formatting requirements to ensure successful transmission and processing of payments.

What is a Bank File?

A bank file is an output file generated by your ERP or payment system that contains all the payment instructions — such as account numbers, amounts, payment dates, etc. — formatted according to the bank’s accepted standards. These files are usually sent to the bank via SFTP or API.

[Fig 3. Bank Definitions screen]

Elements in Bank File Definitions:

Element	Description
File Format Type	Examples: NACHA (US), SEPA XML (EU), MT101 (SWIFT), ABA (Australia), or custom CSV/TXT/XML.
File Header	Contains meta info like company name, creation date, batch number.
Payment Details	Each row or segment includes: payee bank details, account number, amount, payment date, reference.
Footer or Control Record	Contains total payment count, total amount, or checksum values for validation.
File Naming Convention	Often defined by the bank, e.g., COMPANYCODE_DATE_SEQ.txt.
Encoding Format	UTF-8 or ANSI encoding is usually required, depending on the bank.

2. EFT Process: The EFT Process refers to the end-to-end workflow of generating, validating, and transmitting electronic payment instructions from the ERP system to the bank. It typically starts after the initial setup (e.g., vendor bank details, payment methods, file formats) has been completed.

a. Payment/ Receipt entry screen: Invoices are entered into the ERP (manually or automatically via integrations). Approval workflows ensure invoices are authorized for payment before proceeding. Standard payment/receipt screen is added in this module to create payment entries.

b. Manual Remittance Entry: This screen is used to post payment/receipt entries in bulk and to create bank files. Generated bank file name and path is displayed on this screen after bank file generation.

[Fig 4. Manual Remittance Entry screen]

3. Bank Statements: Bank Statements are electronic records provided by banks that detail all financial transactions (credits, debits, balances) for a company’s bank account over a specific period. In the context of EFT and ERP, bank statements are crucial for reconciliation, ensuring that payments made from the ERP system match what the bank has processed.

a. Voucher Generation Screen: This screen displays Credit/Debit statement entries. Users can create payment or receipt entries directly from here and also post them once they are generated. After entering required data, select entries and click on “Generate Entry” button. After that, select the same entries and click on “Post Entry” button.

[Fig 5. Voucher Generation screen]

After posting entries, log will be generated in which newly generated journal entry numbers against those payment or receipt entries will be displayed.

b. Statement Inquiry Screen: Credit/Debit statement entries will be displayed on this screen. Entries for which a payment entry has been created will be highlighted in blue.

[Fig 6. Statement Inquiry screen]/center>

c. Day End Statement – CAMT53: CAMT53 is a bank-to-customer account statement that provides end-of-day details of all transactions posted to a bank account. So, all the day end statements will be displayed here in this Day End Statement screen.

[Fig 7. Day End Statement screen]