Setting Up Banking

This chapter provides an overview of banking setup and discusses how to set up banking.

Understanding Banking Setup

To use the banking feature that Global Payroll for the Netherlands offers, you first need to enter standard banking-related information in the Global Payroll core application. You can then run the core banking process. To continue with the processing in Global Payroll for the Netherlands, however, you have to set up additional information for the system to use when creating the Instruction letter for business payments and the electronic fund transfer file (EFT) CLIEOP-03.

Note. Global Payroll for the Netherlands delivers the bank information for the 'Bank Giro Centrale' as system data under data Bank ID 'BGC'.

After you have set up additional banking information for the Netherlands, you can run banking processes. Banking processes for the Netherlands are discussed later in this PeopleBook.

Setting Up Alternative Giro Accounts for Pay Entities

Source banks accounts for pay entities are defined on the Pay Entity — Source Bank Link page. However, for the Netherlands you can specify an alternative giro account for each source bank account. The giro accounts are used for payments made to other giro accounts only; payments to other types of accounts are deducted from the normal source bank account. Typically organizations have both bank and giro accounts because transfers between a bank account and a giro account are slower than transfers between accounts of the same type.

Use the Pay Entities NLD page for the Netherlands to define the alternative giro accounts for pay entities.

Note. Setting up alternative giro accounts is optional.

To illustrate how the alternative giro accounts work, consider a pay entity with source bank accounts defined at the company level (on the Pay Entity — Source Bank Link page) as follows:

On the Pay Entities NLD page, these alternative giro accounts are defined for the pay entity:

The banking processes use the information on the Specify Net Pay Election page to determine how employees are paid. For this example, suppose that there are four employees whose net pay is transferred to the following accounts:

When you run the core banking process, the payments are linked to bank accounts defined on the Pay Entity — Source Bank Link page:

However, when you run the Dutch Payment Preparation process (GPNL_PAYMENT), this process overrides the source bank account for the pay entity for payments into giro accounts as follows:

See Also

Setting Up Banks and Bank Branches

Defining Banking Instructions

Running Banking Processes

Setting Up Banking

All the additional information required by the system is at the pay entity level. To define banking information for pay entities, use the Pay Entities NLD component (GPNL_PYENT). This section discusses how to enter additional pay entity information for the banking process.

Prerequisites

Before you can define banking information for pay entities, set up the pay entities using the Pay Entity component (GP_PYENT).

See Also

Defining Pay Entities

Page Used to Set Up Banking for the Netherlands

Entering Additional Pay Entity Information for the Banking Process

Access the Pay Entities NLD page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Framework, Organizational, Pay Entities NLD, Pay Entities NLD).

Contact Name	Enter the employee ID of the person in your organization responsible for making the payment to the bank. It is optional to have the contact person's name appear on the Instruction letter business payment. If used on the letter, the contact person's department and business telephone number can be included on the letter.
File Directory	This is where the payment file is placed in the system.
File Name	This is the basic name for the file. During the payment process, the system adds an extension so that the files in the directory are not overwritten. For example, if you set the filename to CLIEOP03 on this page, the system names each payment file CLIEOP03.01, CLIEOP03.02, and so forth.
Last Extension	Displays the number of executions of the banking process. The system initializes this field automatically.
Batch Medium	Select from Cartridge, Datacom, Diskette, or Tape.

Alternative Giro Banks

Use this scroll area to define giro bank accounts that are used to make payments to other giro accounts. When you run the Dutch Payment Preparation process, the process uses the bank account in the Alternative Source Bank ID field if the payment is transferring to a bank account of type Giro Account.

See Setting Up Alternative Giro Accounts for Pay Entities.