75 Set Up Customer Bank Information

This chapter contains these topics:

75.1 Setting Up Customer Bank Information

Navigation

From Accounts Receivable (G03), enter 29

From Accounts Receivable Setup (G0341), choose a bank account option under the System Controls heading

To transfer funds electronically, you must set up address book bank account information for your customers and suppliers external bank accounts. This information is necessary for processes such as Accounts Receivable automatic receipts (lockbox), drafts and automatic debits as well as Accounts Payable EDI and EFT payment processes.

You set up customer bank account information by accessing either Bank Codes from Customer Master Information, or by setting up Bank Account Cross References. The program (P0030) is the same regardless of which method is used to set up the information. This program will allow you to do the following:

  • Define and use more than one bank account per customer/ supplier.

  • Provide a Pre-Note status for each bank account, rather than one per customer/supplier.

  • Provide a mechanism to 'retire' one bank account using an expiration date while keeping it in the file as an audit trail.

75.1.1 Bank Type Code

The bank type code associated with a bank account is used to:

  • Distinguish external bank accounts from internal bank accounts.

  • Define the type of external bank account, for example a customer or a supplier bank account.

75.1.2 Bank Type Code User Defined Table

Suppliers and customers must have valid supplier bank type (V) and customer bank type (D) accounts in order to process drafts, EFT payments and other receipt and payment functions. You may only have one bank account per bank type however; your customers and suppliers may use multiple bank accounts for different processes, locations or specific to a currency denomination.

To accommodate multiple bank accounts per bank type you can set up additional bank type codes to be used as alternative customer/supplier bank accounts. The Bank Type Code field is two characters, so an example of an alternative customer bank type code could be D1. Bank type codes are set up and defined in User Defined Codes (UDC) table 00/BT. The special handling code for the bank type is used to determine if the bank type code will be associated with A/R processes or A/P processes.

To add a bank type code

From UDC table 00/BT, inquire on your existing values for bank type codes. To add a new value:

  1. Complete the following fields:

    • Bank Type Code

    • Description

  2. Access the Detail (F4)

  3. Enter the appropriate value in the Special Handling Code field

    • For A/R bank types, enter '1'

    • For A/P bank types, enter '2'

For example, you may have a customer that uses two bank accounts, each for a different location. Bank type D is set up in the UDC table but you need to add an alternative bank code to accommodate the second bank account. As shown below, bank type D1 has been set up for the second supplier bank account.

Figure 75-1 General User Defined Codes (Bank Type) screen

Description of Figure 75-1 follows
Description of "Figure 75-1 General User Defined Codes (Bank Type) screen"

75.1.3 What You Should Know About

Topic Description
Customer Master Information (P01054) You may assign a default bank type to your customer.
Standard Invoice Entry (P03105) You may assign a bank type to individual transactions at the time of invoice entry.

75.1.4 Bank Account by Currency

You may identify a bank type with a specific currency code. The bank type code and the currency code make a unique combination allowing you to set up multiple customer or supplier bank accounts that are specific to currency transactions.

For example, your customer may want drafts made in Euro currency to be sent to a bank located in a Germany whereas drafts made in Japanese yen (JYP) are to be sent to a bank located in Tokyo. In this instance, you would set up two customer bank accounts, bank type code D, with the currency code EUR assigned to the German bank and the currency code JYP assigned to the Tokyo bank. When drafts are collected for the customer, the draft transaction currency will determine which customer bank account to use.

Note:

The Currency Code field is displayed only if currency processing is activated.

75.1.5 Effective Date/Expiration Date

There may be instances where your supplier opens a new bank account and closes an existing account. You may retire a current bank account and designate an effective date for new accounts. Enter the appropriate date to start using a bank account in the Effective Date field for the bank account. To retire an account but keep the account information in the bank file for audit purposes, set the Expiration Date for the bank account that will be retired.

75.1.6 What You Should Know About

Topic Description
Expiration Reason Code When entering an Expiration Date, you must enter a valid reason code for the expiration. Expiration Reason Code values are set up and maintained in User Defined Table (UDC) 00/XC.

If you do not want to designate specific reasons for retiring an account, you must set up blank as a valid value.


75.2 Adding Customer Bank Account Information

From Supplier Master Information (P01053), choose the Bank Codes function (F8)

Figure 75-2 Bank Accounts by Address screen

Description of Figure 75-2 follows
Description of "Figure 75-2 Bank Accounts by Address screen"

  1. Complete the following fields:

    • Bank Routing/Transit Number

    • Bank Account Number

    • Bank Type Code

  2. Complete the following optional fields:

    • Control Digit

    • Currency Code - this field will only be displayed if currency processing is activated.

  3. Press F4 to access the detail area.

    Figure 75-3 Bank Accounts by Address (Detail) screen

    Description of Figure 75-3 follows
    Description of "Figure 75-3 Bank Accounts by Address (Detail) screen"

  4. Complete the following optional fields:

    • Checking/Savings account

    • Effective Date

    • Expiration Date/Expiration Reason Code

    • Reference/Roll Number

    • SWIFT Code

    • Pre-Note Code

    • IBAN

    • Secondary Business Unit

Field Explanation
Checking or Savings A flag that indicates whether the account is a checking or savings account. This indicator is only meaningful on the G type bank account records and is used during bank tape processing for automatic payments.

Valid values:

blank – checking account

0 – checking account

1 – savings account

Effective Date The date a bank account becomes available for use.
Expiration Date The date the bank account is no longer active and available for use.
Expiration Reason Code Reason code for the expiration of a bank account. Valid reason codes must be set up in UDC table 00/XC.
SWIFT Code The Society for Worldwide Interbank Financial Telecommunications (SWIFT) code is an international banking identification code used to identify the origin and destination of electronic (or wire) financial transfers.
IBAN The International Bank Account Number or IBAN as it is commonly called, is a series of alphanumeric characters that uniquely identifies a customer's account held at a bank anywhere in the world.

The IBAN has a maximum of 34 alphanumeric characters:

The first two alphabetic characters identify the country in which the account is held. The next two digits are the check digits. They validate the complete IBAN. The final part of the IBAN is the domestic account number, which in most cases consists of the account number itself, the number that identifies the bank and the branch, and one or more check digits. For some countries an extra bank identifier is included.

Reference/Roll Number The recipient's reference number.

For French Electronic Funds Transfer, the six positions of this field are used to indicate the Banque de France sender's number.

Secondary Business Unit A business unit may be assigned to bank accounts so that Business Unit Security may be set up to prevent unauthorized users from accessing or changing bank account information.

The Business Unit must be set up in the Business Unit Master (F0006)


75.2.1 What You Should Know About

There are options for additional information relating to each bank account record:

Topic Description
Audit Information (Opt 1) Provides audit information in regard to updating a bank account record.
Additional Information (Opt 2) This option allows you to enter Beneficiary and Corresponding bank account information for each bank account.

75.3 Setting Up Bank Account Cross-References for A/R

You must set up bank account cross-references for your customers who use electronic remittances.

Setting up bank account cross-references consists of:

  • Adding A/R cross-references

  • Verifying A/R cross-references

Bank account cross-references link customer addresses in the Address Book Master table (F0101) to their bank account information in the Bank Transit Number Master table (F0030).

75.3.1 Adding A/R Cross-References

To establish a relationship between your customer and their bank account, add a bank account cross-reference. This lets you process their receipts quickly with limited information, such as the bank transit number and bank account number.

To add A/R cross-references

On Bank Account Cross-Reference

Figure 75-4 Bank Account Cross-Reference screen

Description of Figure 75-4 follows
Description of "Figure 75-4 Bank Account Cross-Reference screen"

  1. Complete the following fields:

    • Address Number

    • Routing/Transit

    • Account Number

    • Control Digit (optional)

    • Description (optional)

    • Type

  2. Press Enter.

Field Explanation
Routing/Transit The routing and transit number for a particular bank account.

The combination of account number and transit number must be unique.

Form-specific information

The combination of account number and transit number must be unique.

Control Digit This is an optional field that allows you to enter a check digit for a bank account number. The check digit is not part of the key to the Bank Account table (F0030).
Type A code used to distinguish external bank accounts from internal bank accounts.

Valid values are:

C – Customer Bank Accounts

G – Internal G/L Bank Accounts

V – Supplier Bank Account for payment via bank tape

D – Default Bank Account for A/R Drafts and Auto Debits

B – Valid Bank Transit Numbers

M – G/L Bank Account/Business Unit used to define print information in A/P payments

Note: When using bank type B, no other bank types are allowed. When using bank type V, no other V bank types are allowed. When using bank type D, no other D bank types are allowed.


75.3.2 What You Should Know About

Topic Description
Deleting bank account cross-references When a customer has more than one bank account cross-reference, you can delete one by clearing the information in the bank account information fields.

The Delete action deletes the entire list of cross-references.


75.3.3 Verifying Cross-References for A/R

After you set up bank account cross-references, run two exception reports to verify the information before you produce your first batch of automatic receipts.

Verifying cross-references consists of:

  • Reviewing the Bank Account Exception Report

  • Reviewing the Address Book Exception Report

These reports compare information in the Address Book Master (F0101) and the Bank Transit Number Master (F0030) tables.

75.3.3.1 Reviewing the Bank Account Exception Report

The Bank Account Exception report edits all the addresses for each bank account cross-reference. This report lists any record that does not exist in the Address Book Master table, and bypasses bank account records that have a blank address number.

This report does not update any information. You must either enter missing address records or remove them from Bank Account Cross Reference.

Figure 75-5 Bank Account/Address Book Exception Report

Description of Figure 75-5 follows
Description of "Figure 75-5 Bank Account/Address Book Exception Report"

75.3.3.2 Reviewing the Address Book Exception Report

The Address Book Exceptions Report lists any customers in the Address Book Master table that do not have a corresponding bank account record on Bank Account Cross Reference. The system only edits customers with a method of payment that requires a bank account record. For example, A/R bank tape processing requires bank account records.

This report does not update any information. You must either enter missing bank account records or change the payment instrument code for the customer in the customer master record.

Figure 75-6 Address Book/Bank Account Exception - Suppliers report

Description of Figure 75-6 follows
Description of "Figure 75-6 Address Book/Bank Account Exception - Suppliers report"

75.4 Setting Up Bank Account Addresses

To assign address book information to a customer's bank account, set up a bank account address. This lets you update a customer's bank transit code, as well as locate other customer address numbers with an associated bank transit type of B (valid bank transit number).

To set up bank account addresses

On Bank Account Addresses

Figure 75-7 Bank Account Addresses screen

Description of Figure 75-7 follows
Description of "Figure 75-7 Bank Account Addresses screen"

  1. Complete the following fields:

    • Bank Transit

    • Address Number (optional)

  2. Press Enter or click Add to access Address Book Addition

  3. Complete the necessary address information.

75.4.1 What You Should Know About

Topic Description
Changing bank account addresses You can only change the address book information for a customer's bank account address. You cannot change the bank transit number.

75.5 Setting Up Bank Account Information for A/R

To create an electronic funds transfer (EFT) for the automatic debiting of a customer's account, you must set up bank account information for your internal bank account.

This information is stored in the Bank Transit Number Master table (F0030).

75.5.1 Before You Begin

  • Set up the G/L account information for each bank account

To set up A/R bank account information

On Bank Account Information

Figure 75-8 Bank Account Information screen

Description of Figure 75-8 follows
Description of "Figure 75-8 Bank Account Information screen"

  1. Complete the following required fields:

    • G/L Bank Account Number

    • Description

  2. Complete the following optional fields:

    • Address Number

    • Control Digit

    • Bank Transit

    • Pre-Note Option Code

    • Bank Account Number

    • Float Days - Receivables

    • Checking or Savings Account

    • SWIFT Code

    • Bank User Number

    • Reference/Roll Number

    • Bank Reference Name

Field Explanation
Pre-Note Option Code The code used to override the Pre-Note processing for electronic funds transfers. Valid values are:

blank – Use the Pre-Note code assigned to the supplier.

1 – Override the Pre-Note code assigned to the supplier and produce a bank tape with no check output even if the Pre-Note code is set to P.

Float Days-Receivables The number of days the check floated. This is defined by subtracting the check date from the bank deposit date.
Checking or Savings Account A flag that indicates whether the account is a checking or savings account. This indicator is only meaningful on the G type bank account records and is used during bank tape processing for automatic payments.

Valid values:

blank – checking account

0 – checking account

1 – savings account

SWIFT Code The Society for Worldwide Interbank Financial Telecommunications (SWIFT) code is an international banking identification code used to identify the origin and destination of electronic (or wire) financial transfers.
Bank User Number The number assigned by the sponsor in the particular bank system (for example, the UK BACS system). This number will be included on all files submitted by the user.
Reference/Roll Number The recipient's reference number.

For French Electronic Funds Transfer, the six positions of this field are used to indicate the Banque de France sender's number.

Bank Reference Name The name of the account associated with the user number (within the particular bank system).