Setting Up Files for Electronic Funds Transfers

This chapter discusses how to:

• Set up electronic funds transfer (EFT) processing.

• Define EFT payment format codes.

• Manage bank and branch files for EFT payments.

• Define Automatic Clearing House (ACH) layouts.

Note. The processes and procedures described here pertain to the FIN2025 electronic payment file formatting process used by Receivables and by the Pay Cycle Manager in PeopleSoft Enterprise Payables. Cash Management provides enhanced EFT functionality through its Financial Gateway functionality. To set up payment file formatting for Financial Gateway, refer to the PeopleSoft Enterprise Financial Gateway PeopleBook.

See Also

Setting Up Electronic Banking Using Financial Gateway

Setting Up EFT Processing

To define EFT layouts, use the EFT File Layout component (EFT_LAYOUT_GBL)

To define ACH layouts, use the ACH Layout component (ACH_LAYOUT_GBL)

PeopleSoft provides several EFT layouts that you can use as delivered or modify. In addition, you must specify EFT payment format codes. These codes define the number of extra settlement days to consider when the system calculates payment schedules for EFTs.

In the event that you need to use an EFT file layout that PeopleSoft does not deliver with this release, you can add a new layout to the EFT processing package.

This section discusses how to:

• Add a new layout to the EFT File Layouts page.

• (Optional) Modify these existing layouts:

  • (GBR) BACS

  • (NLD) BTL91

  • (CAN) CPA005

  • (CHE) DTALSV

  • (DEU) DTAZV

  • (FRA) ETEBAC

  • (SGP) FEDI

• Create the Structured Query Copybook (SQC) module that formats the payment details into your layout.

  PeopleSoft delivers a template to help you do this.

Important! After you create the SQC module, you must tie it to the main EFT routing SQC to enable the EFT layout.

If you are adding additional EFT layouts, you should be familiar with coding in Structured Query Report-writer (SQR).

Delivered ACH and EFT Layouts

PeopleSoft delivers two types of file layouts: those intended for nongovernmental business use, and those intended for US federal government payments.

The "+" suffix of a PPD or CCD file layout indicates the file includes an 80 character addendum section. Addenda records are used by the Originator (originating financial institution) to supply additional information about the detail records that are transferred from the ODFI (Originating Depository Financial Institution) through the ACH Operator to the RDFI (Receiving Depository Financial Institution). The addenda transactions serve as an "envelope" to contain ANSI x.812 EDI 820 transactions.

In PeopleSoft, the CCD+ layout has certain restrictions. The RMR (Remittance Advice Accounts Receivables Open Item Reference) segment is the only transaction (out of many ANSI x.812 EDI 820 transactions) that is supported by PeopleSoft. In addition, the implementation of RMR segment is limited to certain remittance information such as invoice number.

The following table lists the delivered ACH and EFT layout formats that are generally used for nongovernmental payments and their country of use. For file formats that are required by the US Federal Government, see the section entitled US Federal ACH and EFT Layouts.

(USF) US Federal ACH and EFT Layouts

The United States Federal Government (through the US Treasury) has certain requirements for check, ACH, and EFT payments. Setting up this information (that is, defining that the file layout is for employee vendors, other vendors, or both) enables edits that are associated with the voucher creation process to work correctly. The edits check that the bank account and the file layout for the vendor payment are correct as per US Treasury specifications.

These specifications include the following:

• That employee payments are on a PPD or PPD+ file format.

• That vendors' (non-employee vendors) payments are on a CCD, CCD+, or CTX file format.

• That payments, including both employee and non-employee vendors, are on the SF1166SCHK, ECSCHK, or SDPR file format.

  Note. You must use the SF1166SCHK, ECSCHK, or SDPR file format for payments that are created for both employee and non-employee vendors. These file formats are check requests to the US Treasury, and designed to bypass the system edit for federal ACH or EFT payments.

These EFT and ACH layouts that are delivered by PeopleSoft are specific for use when conducting business with the United States Federal government:

You can also add file formats. You should refer to the United States Federal Treasury web site (http://www.ustreas.gov/) regarding file payment requirements before creating and adding file payment formats.

(USF) IPAC Transactions

Another delivered federal EFT layout (that is listed in the table entitled Delivered ACH and EFT layouts) is the IPAC layout. The Intragovernmental Payment and Collection System (IPAC) is an interagency funds transfer mechanism for US federal agencies. The IPAC EFT layout is used in conjunction with Payables to process three types of IPAC transactions: payments, adjustments, and zero-dollar transactions.

If you are processing IPAC transactions in Payables, the following two items must be defined in PeopleSoft banks functionality:

1. The delivered IPAC EFT layout is enabled for system use (select the pertinent options next to the EFT Layout Code field).

2. The bank accounts that process IPAC transactions are configured with the IPAC EFT layout on the External Accounts - Payment Methods page.

See Also

Defining Payment Methods

Setting Up EFT and ACH Payment Formats

Prerequisite

If you are setting up PeopleSoft EFT functionality to conduct business with United States Federal or government agencies, you must first complete the Enable Federal Payment region on the Installation Options - Payables page. Completing this region ensures that certain federal-specific fields display in this component.

See Also

Setting Up Payables Installation Options

Common Elements Used in This Section

Pages Used to Set Up EFT Processing

Managing EFT File Layouts

Access the EFT File Layouts page (Set Up Financials/Supply Chain, Common Definitions, EFT, EFT File Layouts).

The options next to the EFT Layout Code field determine the purpose of the EFT file, where applicable.

The remaining fields are:

(GBR) Specifying BACS Options

Access the BACS Options page (click Detail for the BACS EFT file layout on the EFT File Layouts page).

(NLD) Specifying BTL91 Options

Access the BTL91 Options page (click Detail for the BTL91 EFT file layout on the EFT File Layouts page).

(CAN) Specifying CPA005 Options

Access the CPA005 Options page (click Detail for the CPA005 file layout on the EFT File Layouts page).

(CHE) Specifying DTALSV Options

Access the DTALSV Options page (click Detail for the DTALSV file layout on the EFT File Layouts page).

(DEU) Specifying DTAZV Options

Access the DTAZV Options page (click Detail for the DTAZV file layout on the EFT File Layouts page).

File Options

The EFT payment process automatically increments the file sequence number (Daily Num) by the file Creation Date according to the requirements of the DTAZV layout. You can reset the file creation date and number if there is a processing error.

Payer Options

(FRA) Specifying ETEBAC Options

Access the ETEBAC Options page (click Detail for the ETEBAC EFT file layout on the EFT File Layouts page).

(SGP) Specifying FEDI Options

Access the FEDI Options page (click Detail for the FEDI EFT file layout on the EFT File Layouts page).

Creating an SQR Module for the EFT File Layout

If you do not use any of the delivered EFT layouts in your country, you can develop your own EFT layout. To do this, you must first add the new EFT layout and its options to the list of available EFT layouts using the EFT File Layouts page (EFT_LAYOUT). After you add a new EFT layout, you need to create an SQR module for the file layout that you added. The module that you create will be an SQR Copybook, which has a file extension of SQC.

The files that you require are provided on the system for modification. The FINEFTxx.SQC script, which is shipped with Payables, Receivables, Expenses, and Cash Management, is a template that you can configure to meet your current requirements. In addition, you also need to make changes to the FINEFT.SQC file.This file acts as a router that directs the Pay Cycle process to the appropriate SQC based on the current EFT file layout requirement.

The FINEFTxx.SQC template assumes that one output file is created for each bank account.

File Naming Conventions for EFT Files

The payment process uses these conventions to name the EFT output files: xxxxxnnn.ttt (for example BACS002.txt).

You define these values on the EFT File Layouts page.

Defining EFT Payment Format Codes

To define EFT payment format codes, use the EFT Payment Format Codes component (PYMNT_FMT_CD_PNL_GBL)

To make EFT payments, you must specify EFT payment format codes. These codes define the number of extra settlement days to consider when the system calculates payment schedules for EFTs. The system uses the EFT payment format code in conjunction with the EFT payment calendar to build a detailed adjustment table. The system references this table during voucher processing to calculate the scheduled payment date.

The system also uses the table during payment creation to calculate the settlement date for EFTs. The payment creation process adjusts the scheduled payment date to reflect both the number of settlement days you specify with the EFT payment format code and any business holidays that are recorded in the business calendar. This process ensures that the system selects a voucher for payment on a valid processing date and gives the bank enough time to process the EFT to make the payment due date.

Page Used to Define EFT Payment Format Codes

Defining EFT Payment Format Codes

Access the Payment Format Codes page (Set Up Financials/Supply Chain, Common Definitions, EFT, EFT Payment Format Codes).

Note. For the Spanish EFT layout CSB34, if you select certain format codes, the system automatically populates the EFT file with predefined values. If you select the Wire format code, the system populates the Payment Type field with a value of 56. If you select the Check Std format code, the system populates the Payment Type field with a value of 57.

Managing Bank/Branch Files for EFT Payments

Bankers' associations in some countries keep bank and branch data for the purpose of providing efficient interbank settlement. You can use the bank information that is provided by the association in PeopleSoft applications by loading the bank/branch file electronically. You can also enter bank/branch data online and store it in PeopleSoft applications. This way, you can reuse the bank/branch data when creating vendor and employee data instead of entering bank information each time.

In countries where EFT is used for payment, the EFT payment may require that bank information be written in alternate characters.In Japan, for example, EFT payments must be written in Katakana. For this reason, the bank and branch information that is stored in PeopleSoft might include alternate characters in addition to the rest of the information in the file.

Although the bank and branch file functionality is designed to reflect Japanese requirements, you can use it in any country that receives bank/branch information in a text file format. The examples that follow use Japan as the example.

Note. This functionality is not designed to maintain external banks in the Treasury module. PeopleSoft developed the bank load process to minimize time and effort in maintaining pay to bank information and employee bank information.

This section discusses how to:

• Load the bank/branch file by running the External Bank / Branch Load Application Engine process (EBK_BANKLOAD).

• Maintain external bank/branch information.

Prerequisites

Before you load the branch file, you must:

• Obtain a text file that includes all member bank information from the bankers association.

• Define bank ID qualifiers.

See Also

Establishing Bank ID Qualifiers

Pages Used to Manage the Bank/Branch File

Loading the Bank/Branch File

Access the Bank/Branch File page (Set Up Financials/Supply Chain, Common Definitions, Bank Branch File, Load Bank / Branch File).

File Type	Select either Fixed or CSV.
File Name	Enter the full file path and file name of the bank file.
Reload	Select to reload the entire bank file. In this case, the system deletes the existing bank/branch information and replaces it with a new set of information.

In Japan, the file has the following format (CSV):

Note. All of the fields except Additional Code are required.

The process reads the input file and inserts records into PeopleSoft Applications by country. Depending on the specified runtime parameters, the process either reloads the entire file, or inserts bank/branches that are not already in the PeopleSoft database.

Maintaining External Bank-Branch Information

Access the External Bank-Branch Information page (Set Up Financials/Supply Chain, Common Definitions, Bank Branch File, Bank-Branch File).

Defining ACH Layouts

ACH information is similar to EFT information in that all information that you enter in the ACH Layout page (or EFT Layout page) is used by FIN2025.SQR to produce the actual output file.

Pages Used to Define ACH Layouts