Test mode: validating your first payment file safely

The first EFT file you send to a bank is the one you worry about. Is the originator ID right? Will the bank accept the format? Did the vendor's transit number come through correctly? You want to find out before real money moves and before anything is recorded in your books. That is what test mode in Zefty is for. It produces a genuine EFT 1464 file, marked as a test, and leaves Zoho Books untouched. This guide explains exactly what test mode changes, and gives a checklist for validating your first file.

What test mode changes, and what it does not

Test mode is a single toggle under Zoho configuration, in the EFT 1464 File Settings section. When it is on, a Test Mode ON badge appears on the Bills screen so nobody on the team mistakes a test run for a live one.

The key point: the file itself is real. Same records, same field positions, same totals. Only the downstream effects are switched off. The bills you selected stay unpaid in both Zefty and Zoho Books, so you can run the same selection again in production once you are satisfied.

For banks that expect an explicit test marker in the file header, such as RBC, Zefty writes it. Your bank can then process the file as a validation, not a payment order.

Before you generate anything

Make sure the setup is complete. A test file is only useful if it reflects the real configuration.

1. Bank setup done. Bank selected, business name (30 characters maximum), 10-character bank emitter ID, transit, institution and account numbers entered.
2. Zoho Books connected. The first sync has finished and vendors and bills are visible.
3. Vendor banking details present. At least a few bills show account, transit and institution numbers and are not red. Red rows are blocked from export in test mode too.
4. Account Paid From chosen. Not used in test mode, but you will need it the moment you switch to production, so set it now.
5. Test mode switched on. Confirm the badge on the Bills screen.

A first-file checklist

Work through these in order. Each one catches a different class of error.

1. Pick a small, representative selection

Select two or three bills from different vendors, ideally including one vendor whose name has an accent or an ampersand, and one bill where you enter a partial amount. Small files are easier to read; varied vendors exercise the name cleaning and the per-vendor grouping.

2. Generate the file with a sensible payment date

Click Generate Payment File and accept today's date, or pick a date a few days ahead. Do not choose a date in the past; banks reject that even on test submissions.

3. Download both the file and the PDF report

On the Report screen, the new export shows its file number, type, total and creation date. Download the EFT File and the PDF Report. The PDF is a field-by-field breakdown of every record: for the A record, your originator ID, file creation number and date; for each C record, the vendor name as written in the file, the institution, transit and account numbers and the amount; for the Z record, the count and total.

4. Check five things in the PDF

• The originator ID matches your bank's EFT agreement exactly.
• Each institution number has 3 digits and each transit has 5.
• Vendor names contain only letters, digits and hyphens.
• The partial amount you entered appears in the right credit record, and the vendor with several bills shows a single summed credit.
• The Z record total equals the Selected Total you saw on the Bills screen.

5. Submit the test file to your bank

Most Canadian banks offer a way to validate a file without executing it, either a dedicated test upload or a validation step in the same portal. Ask your business banking representative which applies. Upload the file, keep the confirmation or the error message, and note the file number.

6. Read the bank's answer

If the bank accepts the file, you are done with the format. If it rejects it, the message will usually point to one of a handful of causes: originator ID, EFT origination not activated, field lengths, characters in names, or the file name. Our article on why banks reject EFT files walks through each one.

Switching to production

When the bank has validated the file:

1. Go back to EFT 1464 File Settings and switch Test mode off. The badge disappears from the Bills screen.
2. Check Last file number. Every generated file, including tests, consumes a number, so the counter has moved on. If your bank expects a specific sequence, adjust the value here before your first live run.
3. Confirm Account Paid From in Zoho Books Settings. This is the account the Vendor Payment will be recorded against.
4. Run the same selection again. This time Zefty posts one Vendor Payment per vendor to Zoho Books with payment mode "Zefty EFT 1464", marks the bills as exported, and the History screen shows the Zoho payment IDs.

When to use test mode again later

Test mode is not only for onboarding. Switch it on when you:

• change banks or bank accounts;
• add a second organization in Zefty and want to validate its setup;
• move vendor banking details from Zoho Books bank accounts to custom fields, or the other way round;
• train a new team member on the payment run without risk.

Because test files are saved on the Report screen like any other export, you keep a record of every validation you have done.

Key takeaways

• Test mode produces a complete EFT 1464 file, marked as a test. Nothing is posted to Zoho Books and bills stay unpaid.
• The Test Mode ON badge on the Bills screen makes the state obvious to the whole team.
• Use the PDF report to check the originator ID, field lengths, vendor names, partial amounts and totals before uploading.
• Ask your bank how to submit a validation file, and keep its confirmation.
• Test files consume file numbers; review Last file number before going live.

If you would like a second pair of eyes on your first file, our Canadian support team can review the PDF report with you in English or French. Reach us through the support page.