ACH Setup

To use Portico's ACH features, users must be assigned to security groups with the appropriate permissions and various processing rules must be set up.

• ACH Security Groups
• Define the Credit Union-Level ACH/Payroll Processing Rules

To begin receiving and posting transactions through the ACH network, complete the following steps:

1. Determine if your sponsor or agent is currently using the ACH network and can provide Portico with ACH formatted transactions. If yes, continue to step #2. If no, ask your sponsor company to contact their bank to originate on the sponsor company's behalf. After the sponsor company receives your request, the sponsor contacts their bank to begin delivering an electronic transmission. The bank assigns the sponsor's company ID. Only financial institutions can have a routing and transit number. The OFI originates the ACH items for the sponsor company and sends them to the Federal Reserve.
2. Contact your local Federal Reserve to complete a Basic ACH Agreement and begin implementing setup procedures. The routing and transit number for Portico is 7110-6002-5.
3. Notify Portico in writing that you will be using the ACH network and that you will authorize postings on a continuing basis. Request an ACH Questionnaire. The ACH Questionnaire notifies Portico that you authorize continued postings.
4. Complete the ACH Questionnaire and return it to Portico. Portico suggests that you select the ACH default table (ACH Processing Options window/ACH Processing Rules window) on the ACH Questionnaire.
5. Request that the sponsor or agent transmit a prenotification containing zero balance test items to Portico prior to beginning the first entries to insure proper processing. The Federal Reserve does not require a prenotification. It is a Portico request to ensure proper future ACH processing. You may need to ask your sponsor companies to transmit a prenotification.

General Ledgers

The Federal Reserve Bank electronically transmits the ACH batches to Portico, and the system automatically posts the ACH items to the clearing general ledgers. The purpose of the ACH clearing general ledger account is to offset ACH postings. The ACH clearing general ledger account is used for ACH debits (withdrawals) and credits (deposits).

The actual ACH funds are deposited or withdrawn on the credit union's corporate central account or at the financial institution where the credit union has its settlement general ledger account.

Using the same general ledger account for ACH items processed through the Federal Reserve Bank will make balancing ACH items to the FedACH Advice from the Federal Reserve Bank much easier. The following ACH items should have a different general ledger number:

• Items that process through File Exchange (XROADS), such as offline ATMs. You will receive a separate report for ATMs from the ATM network.
• Items such as check charges via File Exchange (XROADS).

When Portico receives notice that a debit entry contains incorrect posting information and the member cannot be found, the system automatically debits the amount to the ACH suspense general ledger account. The ACH suspense general ledger account is used to offset the ACH exceptions. The ACH suspense general ledger account contains rejected deposit items and rejected withdrawal items. The ending balance in this account can be either a debit or a credit. Be sure to clear the account balance every day.

The ACH general ledger appears on the ACH Processing Options window. The ACH Payroll general ledger appears on the Payroll Posting Summary window and can be different than the ACH general ledger on the ACH Processing Rules window.