A pre-note (prenote) is a test case to process before actual electronic funds' transfers begin. From a process perspective, sending a pre-note is a test of employee direct deposit information. Physically, a pre-note is a record within an ACH file that has zero dollars and a transaction code indicating that it is a pre-note and whether it is defined as a checking or savings account.
Typically, the Net Pay Codes for direct deposits are defined to allow a pre-note.
The Employee Net Pay Detail has a field for the Pre-Note Expiration date. A pre-note expiration date is the last date for this test case to process for an employee's direct deposit. Without a pre-note expiration date that is before the check date, the direct deposit automatically is treated as live direct deposit information.
A pre-note processes before it expires.
To determine if a pre-note or a live direct deposit will process, compare the Pre-Note Expiration date to the check date.
Pre-Note Expiration Date | Pre-Note Expiration Date |
---|---|
No Pre-Note Expiration date |
The direct deposit net pay is live. |
Expires BEFORE the check date |
The direct deposit net pay is live. |
Expires ON the check date |
No pre-note processes, and the direct deposit does not process. |
Expires AFTER the check date |
Pre-notes the direct deposit based on the Net Pay Code's setup to pre-note. |
For most banking institutions, sending a pre-note is optional.
Entering an appropriate Pre-Note Expiration Date on employee net pay details for direct deposit to cause a pre-note is recommended, but it is possible to skip the pre-note and begin processing live without a pre-note.
It is possible to pre-note a second payroll run. A pre-note will be created for every payment that has a pre-note expiration date after the check date for the payment.
To pre-note a net pay for direct deposit, on the Employee Net Pay Detail record that you want to pre-note again, define the Pre-Note Expiration date after the check date that you want to pre-note.