A payment order (PO) is an instruction to move money to or from a customer bank account(s) as an ACH, wire, check or RTP. PO creation within Modern Treasury will enable us to communicate with the your bank to move the amount of money specified.
To initiate a payment order, you will want to click "+New Payment Order"on the top right:
The fields that are required include the action (whether you are paying or charging the counterparty), the payment type, amount, your originating account and the counterparty.
There is additional information you can utilize as well:
- Bank Statement Description - An optional description that will appear within the bank statement for you and your counterparty. If a check, this will appear as a memo. 10 character limit for ACH (15 for EFT). For check payments, this field will be used as the memo line. For EFT, the maximum length is 15 characters.
*Note that for ACH payments, the name on your bank account will be included automatically by the bank, so you can use the characters for other useful information.
*For RTP, the "Remittance Information" field will be used to place the "Bank Statement Descriptor."
- Remittance Information - Additional information you may want to include for the counterparty. If this field is left blank then an addenda record would not be created. For ACH, this will be passed through on an addenda record (80 character limit). For wires, this will be passed through as the “Originator to Beneficiary Information (OBI)” (140 character limit).
- Internal Description - Description for internal use only; the counterparty will never see this information
- Payment Date - The date the payment will occur. This is also known as the effective date.
- Non-Sufficient Funds Protection Checkbox - If selected, MT checks the available balance of the selected counterparty account for sufficient funds before debiting. If there are non-sufficient funds, the PO will not be processed and will be retried later. (Only used for ACH charges) with external accounts authenticated via Plaid)
- Payment Order Metadata - Free-form key-value pairs to make searching easier.
- Line Items - The additional information that can be included to represent a specific sub-amount. The line items will total the sum of the PO.
- Documents- This is just to include any files that are associated.
Bulk uploads are possible for the POs as well. You can download a CSV template from the Bulk Upload option in order to fill in fields to initiate multiple payment orders at once. Click here for more information on how to move forward with a bulk CSV upload.