PeopleSoft Enterprise Cash Management 9.1 PeopleBook

Managing Fees and Account Analysis

This chapter provides an overview of bank fees and account analysis and describes how to:

Set up fee structures.
Compare fee structures.
Perform account analysis.
Use the Account Analysis Manager.
Create fee entries.

Understanding Managing Fees and Account Analysis

With the Account Analysis feature, you can configure fee codes and fee structures for use in bank fee comparisons and statement analyses.

Account analysis enables you to define how bank fees are calculated for your enterprise and organizes them into fee structures. A fee structure enables you to group, in one place, all the fees that a particular bank charges. You can use fee types that match the standards documented in Treasury Management Association (TMA) Guide to Account Analysis and Service Codes, published by the Association for Financial Professionals (AFP). Examples of fee types are tiered pricing, base fee, and minimum/maximum fees.

By defining and analyzing this data, you can reduce your fee expenses in two ways:

Comparing fees for up to five banks, and determining which bank has the best fee structure for your requirements.
Catching bank charge errors by comparing an EDI 822 Account Analysis bank statement against the data.

Overview of bank account fee analysis

Common Elements in this Chapter

Analysis Start Date and Analysis End Date	Defines the calendar period that the system analyzes. When running an account analysis, the system includes all the activities between these two dates in the analysis.
Bank Code	Displays the identifier code for a specific bank.
Fee Code	Displays the identifier code for a specific fee.
Fee Structure Code	Displays the identifier code for a specific fee structure.
Period Beginning and Period Ending	Defines the beginning and ending dates for a specified time period.
Day Count Basis	Select from the following options: 30/360: Assumes that a year consists of twelve months with an equal length of 30 days. A special rule applies when dealing with the end of a month. 30E/360: Assumes that a year consists of twelve months with an equal length of 30 days. Also known as Euro 30/360. Actual/360: Assumes that a year consists of 360 days but the months are counted as actual calendar days. Actual/365: Assumes that a year consists of 365 days but the months are counted as actual calendar days. Actual/Actual: Assumes that the number of days between two dates is the actual number of calendar days.

Setting Up Fee Structures

To define fee codes, use the Fee Codes component (DEFINE_FEE_CODE_GBL).

This section discusses how to:

Create fee transaction tables.
Define fee codes.
(Optional) Enter SQL Where Criteria.
Set up fee structures.
Define fee structures.
(Optional) Edit base fee calculations.

Pages Used to Set Up Fee Structure

Page Name	Definition Name	Navigation	Usage
Fee Transaction Tables	FA_FEE_TRAN_PNL	Set Up Financials/Supply Chain, Product Related, Treasury, Fee Transaction Tables	Set up transaction tables.
Fee Code Definition	FA_FEE_CD_PNL	Set Up Financials/Supply Chain, Product Related, Treasury, Fee Codes	Set up fee codes.
SQL Where Criteria	FA_FEE_SQLWHERE_SP	Click Where Clause on the Fee Code Definition page.	Establish criteria for the fee analysis metric.
Fee Structures - Structure Accounts	FA_FEE_ACCT	Banking, Account Analysis, Fee Structures	Set up fee structures.
Fee Structures - Structure Definition	FA_FEE_STRUCT	Select the Structure Definition tab on the Structure Accounts page.	Define fee structures.
Fee Calculation Type - Fee Structure	FA_FEE_STRUCT_SEC	Click Fee Definition on the Fee Structure Definition page.	Edit the base fee calculation for certain fee calculation types.

Creating Fee Transaction Tables

Access the Fee Transaction Tables page (Set Up Financials/Supply Chain, Product Related, Treasury, Fee Transaction Tables).

Define the names of the transaction tables that you will use with your fee codes. The transaction tables contain the underlying transactions, which the system references when processing fees. After you save the transaction tables, you can reference the table when you define each fee code.

Defining Fee Codes

Access the Fee Code Definition page (Set Up Financials/Supply Chain, Product Related, Treasury, Fee Codes).

Description

Create both a description and fee code and that matches the TMA TS 822 or that matches your financial counterparty account analysis standards.

Code Seq Num (code sequence number)

Assign a fee code to determine the order in which the fee codes appear on your account analysis screens.

Fee Type

Specify whether this fee type applies to transactions involving a Letter of Credit, Deal Fee, Facility Fee, or EFT Fee. You can select multiple options.

Fee Analysis Metric SQL

Define how the fee metrics will be tracked in your system.

Fee Validation Information	If the fee can be tracked in your system, select the check box. In certain circumstances, you may not want to validate all fees. In this case, leave the check box deselect.
Transaction Table	Reference the fee validation information to a fee transaction table (defined in the prior section). After you save this value, click the Transaction Tables button to view the specific table definition.
Transaction Date Field	Select the date type field name used to determine the fee (for example, ACCOUNTING_DT = accounting date).
Aggregate Type	Select Count, Avg (average), Min (minimum), Max (maximum), or Sum. The available aggregate fields to which the aggregate parameters can be applied are prompted for you from the selected transaction table. After selecting the Aggregate Field, click the Where Clause button to select operators and describe the value that the Aggregate Field must match.

Accounting Treatment

Define how the accounting process handles bank fees.

Account for Fee	Selecting this check box determines if a fee may be expensed or amortized. If a fee is amortized, accounting templates for booking the fee and amortization of the fee are required. If a fee is expensed, it may not be amortized and only the template for booking the expense is required.
Interest Basis Override	Fees may be amortized or accrued on various day count basis. Select this check box to enable modification of the Day Count Basis type on the Fee Entry page when creating a fee. If not selected, the Day Count Basis type on the Fee Entry page automatically defaults to the fee set up information, and cannot be modified.
Override Template on Fee Panel	Select this check box to allow editing of the Template field on the Fee Entry page.
VAT Applicable Fee	If this fee code is VAT applicable, select the check box, and specify the appropriate Expense Template. All VAT transactions recorded in Treasury Management are assumed to be transactions on services, not transactions on goods. When you create a VAT-applicable fee, the Physical Nature field displays Services.
Day Count Basis	Select from the following: 30/360: Assumes that a year consists of 12 months with an equal length of 30 days. A special rule applies when dealing with the end of a month. 30E/360: Assumes that a year consists of 12 months with an equal length of 30 days. Also known as Euro 30/360. Note. The difference between the 30/360 calculation and the 30E/360 calculation occurs when a period ends on the 31st, but did not start on the 30th or 31st. In this case, the 30/360 calculation uses the 31st day as equal to 31, while the 30E/360 calculation uses the 31st day as equal to 30. For example, using the 30/360 calculation, the period starting December 1 and ending December 31 contains 30 days. However, using the 30E/360 calculation, the same December time period contains only 29 days. Actual/360: Assumes that a year consists of 360 days but the months are counted as actual calendar days. Actual/365: Assumes that a year consists of 365 days but the months are counted as actual calendar days. Actual/Actual: Assumes that the number of days between two dates is the actual number of calendar days.
Amortized	If you opt to amortize the fee over time, select both an Expense Template and Accrual Template.
Expensed	If you opt to only expense the fee, select an appropriate expense template value.

See Also

Creating Fee Transaction Tables

Validating Account Analysis Information

Creating VAT Transactions for Fees

Entering SQL Where Criteria

Access the SQL Where Criteria page (click Where Clause on the Fee Code Definition page).

Select operators and describe the Value that the Aggregate Field must match to pass the fee analysis. When you enter multiple criteria lines, a logical and is implied.

Setting Up Fee Structures

Access the Fee Structures - Structure Accounts page (Banking, Account Analysis, Fee Structures).

There two components to a fee structure:

Account information. Each structure is defined according to the bank and the account to which the fee structure will be charged.
Accounts in the fee structure, and their associated currency.

Fee Structure Accounts

Charge to Bank Account

Select a bank account to record any fees charged to this fee structure.

Accounts in Fee Structure

Enter the bank account or accounts that are associated with a particular fee structure.

Defining Fee Structures

Access the Fee Structures - Structure Definition page (Select the Structure Definition tab on the Structure Accounts page).

Fee Calculation Type

Select one of the following values:

Base Fee: Fee that is charged in addition to the unit price when one or more units of the service are provided. For example, a base fee of USD 10.00 is charged, plus USD 0.50 per unit.

Flat Fee: Fixed fee that is charged for service provided that is not directly tied to the volume of the service. For example, Balance Reporting is USD 50.00 per month, regardless of the number or reporting files created during the month.

Minimum Fee: Lowest fee that is possible for the service provided; for example, USD 1.00 per unit with a USD 5.00 minimum. The minimum fee is charged even if the unit count is less than 5.

Maximum Fee: Highest fee that is possible for the service provided; for example, USD 1.00 per unit, with a USD 50.00 maximum. The maximum fee is charged even if the unit count exceeds 50.

Rate Based Charge: This fee is calculated using a balance and an annual percentage rate. For example, an overdraft fee is calculated as the Average Negative Ledger Balance x 12% x 30/365.

Discounted Price: This fee is calculated using a price that is less than the standard price for the service provided. For example, Customer A is charged USD 0.90 per unit, instead of the standard USD 1.00 per unit.

Threshold Price: The total volume determines the unit price for the service. For example, if the volume is 1,000 or less, the price is USD 0.10 per unit; if the volume is more than 1,000, the price is USD 0.09 per unit.

Tiered Pricing: The price for the service is determined by the tiering structure and the total volume. The volume is broken down into as many tiers as necessary, and a different price is used to calculate the fee for each tier. For example, for the first 1,000 items, the price is USD .10 per unit; for more than 1,000 items, the price is USD .09 per unit.

Fee Definition

Depending on the Fee Calculation Type, you can click to further define the metrics of the fee on the Fee Structure page.

Validate Fee

Select this check box to validate the particular fee code against both the cost and volume as defined in the fee structure and the volume as defined in the fee code setup and fee transaction tables.

Editing Base Fee Calculations

Access the Fee Calculation Type − Fee Structure page (Click Fee Definition on the Fee Structure Definition page).

The fee calculation type must have an editable fee definition to access this page. Enter a new base fee, expressed as a decimal, for fee calculation.

Comparing Fee Structures

This section discusses how to compare fee structures.

Use these pages in this section to compare them with each other and to analyze the results. You can compare as few as two or as many as five fee structures at one time. You can also create multiple comparison scenarios and save them for future use. If the underlying structure changes, you can rerun the saved comparison and view the new results.

Pages Used to Compare Fee Structures

Page Name	Definition Name	Navigation	Usage
Fee Structure Comparison	FA_CHARGE_COMP	Banking, Account Analysis, Fee Structure Comparison	Compare different fee structures that are applied to the same account, and also create and save multiple comparison scenarios for future use
Fee Structure Comparison Results	FA_CHARGE_RSLTS	Click Compare Fee Structures on the Fee Structure Comparison page.	Analyze fee structures' comparison. The page also displays the optimal fee structure choice.

Comparing Fee Structures

Access the Fee Structure Comparison page (Banking, Account Analysis, Fee Structure Comparison).

To compare fee structures:

Enter up to five Fee Structure Codes for comparison in the Fee Structures group box.
Click Compare Fee Structures.
The Fee Structure Comparison Results page appears. Each fee structure you selected on the Fee Structure Comparison page is calculated and displayed. The fee structure of optimal choice, based on the comparison of fees, is identified to the right of the Guide to Account Analysis field. A Charge Difference column appears on the page only if you are comparing two fee structures.

Performing Account Analysis

This section discusses how to:

Manually create statements.
Automatically import statement information.
Validate account analysis information.

Once bank fee codes and structures have been set up, you can perform account analysis on your bank statements to verify fee charges and catch potential errors. EDI 822 statements can be entered either manually or automatically imported using PeopleSoft banking functionality. You use the Account Analysis pages to enter bank statement balance, service, and rate information, as well as balance adjustments and service adjustments, where necessary. After entering a statement, you can validate that statement to ensure correct volumes, balances, and charges. This should help decrease your research time into statement exceptions.

Common Elements in this Section

Adjustment Date	Displays the balance adjustment or service charge adjustment entry date.
Fee Code	Displays the identifier code for the specified fee.
Pay Method	If you leave the Pay Method field blank, the system applies the charge to the balance compensable service charges. F: Free (no charge) N: Non balance compensable W: Waived X: Not assessed through analysis
Service Charge or Service Charge Amount	Displays the service charges assessed to your account by the bank.

Pages Used to Perform Account Analysis

Page Name	Definition Name	Navigation	Usage
Fee Statements - Information	FA_BNK_STMT_HDR	Banking, Bank Statements, Enter Fee Statements Select the Information tab.	Enter statement and analysis date information, and select a statement method. You can also view bank contacts.
Fee Statements - Rates	FA_BNK_STMT_RATE	Banking, Bank Statements, Enter Fee Statements Select the Rates tab.	Enter rate information for statement fee codes
Fee Statements - Balance Compensation	FA_BNK_STMT_ANYL	Banking, Bank Statements, Enter Fee Statements Select the Balance Compensation tab.	Enter balances, earnings and other totals.
Fee Statements - Balance Adjustments	FA_BNK_STMT_BADJ	Banking, Bank Statements, Enter Fee Statements Select the Balance Adjustments tab.	Enter balance adjustment information.
Fee Statements - Service Charges	FA_BNK_STMT_SRVC	Banking, Bank Statements, Enter Fee Statements Select the Service Charges tab.	Enter statement service charge information.
Fee Statements - Service Adjustments	FA_BNK_STMT_SADJ	Banking, Bank Statements, Enter Fee Statements Select the Service Adjustments tab.	Enter adjustments to service charges found on the bank account analysis statement.
Import Bank Statements	BSP_IMPORT	Banking, Bank Statements, Import Bank Statements Click Import Bank Statements on the Account Analysis Manager page.	Submit an electronic request for bank statement information.
Account Analysis Validation	FA_BNK_STMT_VALID	Banking, Account Analysis, Account Analysis Validation	Validate a statement against a fee structure.

Creating Statements Manually

This section discusses how to manually create statements:

Enter general statement information.
Enter statement rate information.
Enter balance compensation information.
Enter balance adjustment information.
Enter service charge information.
Enter service adjustment information.

Entering General Statement Information

Access the Fee Statement - Information page (Banking, Bank Statements, Enter Fee Statements, Information).

Statement Date

Enter the date the statement is created or imported.

Settlement Method

Select Debit or Invoice.

Bank Contacts

This information is associated with the Bank ID and Account #. The fields display the information you entered on the Financial Contacts page.

Entering Statement Rate Information

Access the Fee Statements - Rates page (Banking, Bank Statements, Enter Fee Statements, Rates).

Rate Date

Enter the effective date for the Rate.

Rate

Enter a rate in decimal format. Rates can be any type, such as earnings rates for the current and next period, or reserve rates.

Multiplier

Specify a service multiplier, in decimal format.

Days/Period

Enter the number of days in the analysis period, generally 30 or 31.

Days/Year

Enter the number of days in the year, generally 365 or 366.

Entering Balance Compensation Information

Access the Fee Statements - Balance Compensation page (Banking, Bank Statements, Enter Fee Statements, Balance Compensation).

You enter balances, earnings allowance, and service charge summary information for a specified account on this page.

Balance Amount

Enter the final balance amount for the indicated Fee Code from the 822 Statement.

Entering Balance Adjustment Information

Access the Balance Adjustments page (Banking, Bank Statements, Enter Fee Statements, Balance Adjustments).

You can correct balance information for a specific account number.

Transaction Amount	Enter the adjustment transaction amount.
Days	Indicates the number of days the balance adjustment is outstanding. For example, $10,000 for five days.
Rate	Displays the adjustment rate expressed as a decimal.
Earnings allow Adjustment	Enter the actual dollar amount being charged or reimbursed to the account by the bank.

Entering Service Charge Information

Access the Fee Statements - Service Charges page (Banking, Bank Statements, Enter Fee Statements, Service Charges).

Enter service charges from the bank account analysis statement on this page.

Price ID	Refers to the fee calculation type. Select from the following: B (Base Fee): Fee that is charged in addition to the unit price when one or more units of the service are provided. For example, a base fee of USD 10.00 is charged, plus USD 0.50 per unit. F (Flat Fee): Fixed fee that is charged for service provided that is not directly tied to the volume of the service. For example, balance reporting is USD 50.00 per month, regardless of the number or reporting files created during the month. M (Minimum Fee): Lowest fee that is possible for the service provided; for example, USD 1.00 per unit with a USD 5.00 minimum. The minimum fee is charged even if the unit count is less than 5. X (Maximum Fee): Highest fee that is possible for the service provided; for example, USD 1.00 per unit, with a USD 50.00 maximum. The maximum fee is charged even if the unit count exceeds 50. R (Rate Based Charge): This fee is calculated using a balance and an annual percentage rate. For example, an overdraft fee is calculated as the average negative ledger balance x 12% x 30/365. D (Discounted Price ): This fee is calculated using a price that is less than the standard price for the service provided. For example, customer A is charged USD 0.90 per unit, instead of the standard USD 1.00 per unit. H (Threshold Price): The total volume determines the unit price for the service. For example, if the volume is 1,000 or less, the price is USD 0.10 per unit; if the volume is more than 1,000, the price is USD 0.09 per unit. T (Tiered Pricing): The price for the service is determined by the tiering structure and the total volume. The volume is broken down into as many tiers as necessary, and a different price is used to calculate the fee for each tier. For example, for the first 1,000 items, the price is USD .10 per unit; for more than 1,000 items, the price is USD .09 per unit.
Unit Price	Enter the unit price per fee item.
Count	Enter the number of statement items for each fee code.
Balance Equivalent	Enter the account's balance equivalent, as defined by the bank.

Note. If you use Flat Fee for the Price ID, the service charge equals the unit price. If you want the service charge to equal the unit price multiplied by the count, you must useTiered Price for the Price ID.

Entering Service Adjustment Information

Access the Fee Statements - Service Adjustments page (Banking, Bank Statements, Enter Fee Statements, Service Adjustments).

Use this page to apply any adjustments to service charges found on the bank account analysis statement.

Payment Method

Select from the following options:

B: Compensation by balance.
D: Debited hard charged.
F: Free (No charge.)
I: Invoiced Separately
N: Nonbalance compensable.
P: Previously charged.
W: Waived
X: Not assessed through analysis.

Automatically Importing Statement Information

Use PeopleSoft banking functionality to automatically import bank statement data from your financial institution to the account analysis application tables. Once the data is in the system, you can view and edit statement information on the Fee Statements - Balance Adjustment and Fee Statements - Service Adjustment pages.

See Also

Entering Service Charge Information

Setting Up Electronic Banking Using Financial Gateway

Processing Bank Statements in Financial Gateway

Validating Account Analysis Information

Access the Account Analysis Validation page (Banking, Account Analysis, Account Analysis Validation).

Fee Structure Code

Select a fee structure code and click the Validate button. All exceptions, where the system does not match your bank statement, display in the Fee Exceptions grid. The types of exceptions appear according to column heading. The grid will indicate what type of exception was encountered and the amount of the discrepancy

Count Variance

Displays the difference between the Bank Item Count and your organization's Item Count.

Using the Account Analysis Manager

This section discusses using the Account Analysis Manager. You can examine your fee activity on an ad hoc basis for particular fee structures, for historical or current information.

Page Used for the Account Analysis Manager

Page Name	Definition Name	Navigation	Usage
Account Analysis Manager	FA_STMT_INQ_PNL	Banking, Account Analysis, Account Analysis Manager	Review fee activity on an ad hoc basis and perform other bank fee and account analysis tasks from a central location.

Using the Account Analysis Manager

Access the Account Analysis Manager page (Banking, Account Analysis, Account Analysis Manager).

Your search results appear in the Account Analysis Activity grid.

Validate Statement	Click to access the Account Analysis Validation page and validate account analysis.
Compare Fees	Click to access the Fee Structure page and compare two to five fee structures.
Edit Analysis Statement	Click to access the Enter Fee Statements page and modify a specific account analysis statement.
Load Analysis Statement	Click to access the Import Bank Statement page and request electronic transmission of bank statement information.

See Also

Comparing Fee Structures

Performing Account Analysis

Validating Account Analysis Information

Automatically Importing Statement Information

Creating Fee Entries

This section discusses how to:

Create fee entries.
Create external transactions fee entries.

After establishing fee codes and structures, you can create fee entries for both delivered PeopleSoft fee sources and miscellaneous fee entries to track these expenditures. In addition, if you have enabled VAT (value added tax) processing in Treasury Management, the system automatically calculates, processes, and tracks VAT amounts for VAT−applicable fee entries.

See Also

Creating VAT Transactions for Fees

Pages Used to Create Fee Entries

Page Name	Definition Name	Navigation	Usage
Enter Fees	FEE_GENERATOR_PNL	Cash Management, Fees and Transfers, Enter Fees	Create fees for deal, facility, EFT, and letter of credit sources.

Creating Fee Entries

Access the Enter Fees page (Cash Management, Fees and Transfers, Enter Fees).

Fee Information

VAT

Click the link to access the VAT Transactions Details page. The system performs an audit, checking that the business unit of the Bank Code is VAT enabled, and the Fee Code is configured for VAT and associated with a VAT applicable accounting template. The VAT Transactions Details page displays only if these conditions are met.

Payment Information

Tran Date (transaction date)	Enter the actual transaction date of the fee entry. The system automatically populates this field with the system date.
Payment Date	Enter the specified payment date of the fee entry.
Pay Fee	Select to pay the fee. Also select a Payment Method.
Instructions (settlement instructions)	Select settlement instructions for processing the fee entry payment.
Expense Template	Select an accounting template to record this fee entry as an expense.

Accrual Details

Period Start and Period End	Enter the beginning and ending dates of the accrual period.
Accrual Template	Specify the accounting template to record the accrual amount for this fee entry.

Position Details

As the fee is processed through the system, you can view accrual details.

Cash Flow

As the fee is processed through the system, you can view approval and payment details.

See Also

Working with Settlements

Description	Create both a description and fee code and that matches the TMA TS 822 or that matches your financial counterparty account analysis standards.
Code Seq Num (code sequence number)	Assign a fee code to determine the order in which the fee codes appear on your account analysis screens.

Statement Date	Enter the date the statement is created or imported.
Settlement Method	Select Debit or Invoice.

Rate Date	Enter the effective date for the Rate.
Rate	Enter a rate in decimal format. Rates can be any type, such as earnings rates for the current and next period, or reserve rates.
Multiplier	Specify a service multiplier, in decimal format.
Days/Period	Enter the number of days in the analysis period, generally 30 or 31.
Days/Year	Enter the number of days in the year, generally 365 or 366.

Fee Structure Code	Select a fee structure code and click the Validate button. All exceptions, where the system does not match your bank statement, display in the Fee Exceptions grid. The types of exceptions appear according to column heading. The grid will indicate what type of exception was encountered and the amount of the discrepancy
Count Variance	Displays the difference between the Bank Item Count and your organization's Item Count.