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Defining Bank Transaction Codes. Transaction codes represent the various bank transactions you will use in the Accounts Payable and Accounts Receivable applications. You define transaction codes for types of payments, such as checks or bills of exchange, or for bank services, such as deposits or service charges.
A. Deduction Code: Set up Deduction Codes as required. Company 99 has two such Codes already established: 901 and 902. Code 902 is the Code that is set up to send an employee's net pay to a specific bank, so let's examine it in some detail: The Category for Direct Deposit will always be Z (ZERO OUT--DIRECT DEPOSIT).