What is ABA file?

Where the ABA format comes from

An ABA file is the standard format for telling an Australian bank which payments to make through the direct entry system, also called the Bulk Electronic Clearing System (BECS). BECS is administered by the Australian Payments Network (AusPayNet). Businesses and government use it for regular payments such as salaries, supplier payments and direct debits.

Instead of keying each payment into internet banking, you upload one file and authorise the whole batch at once.

What is inside an ABA file

An ABA file is plain text with fixed-width lines. It has three kinds of line:

• a header line identifying your bank, your business and your direct entry user ID
• one detail line per payment, with the payee’s BSB, account number, account name, amount and a lodgement reference
• a total line with the number of payments and the total amount

The bank checks the total line against the detail lines and rejects a file that does not add up. Because the format is fixed-width, a stray character or wrong field length can also stop the upload.

Using ABA files in NDIS and aged care

• Plan managers pay many provider invoices in one batch.
• Providers pay staff wages and contractor invoices.

The lodgement reference appears on the payee’s bank statement, so put the invoice number or pay period in it. That one habit removes most “what is this payment for?” calls.

Checks before you upload

• Every BSB and account number matches the payee’s written bank details.
• The number of payments and the total match the batch that was approved.
• Every line has a lodgement reference the payee will recognise.
• A second person authorises the batch in the bank, where your controls require it.

How Rostery helps

Rostery creates ABA files for contractor payments and provides a payroll export for your payroll system.