The Bank Account model allows users to define and keep track of all bank accounts in the e-Business Suite in one place and explicitly grant account access to multiple operating units/functions and users. Bank accounts for internal use are consolidated in:
Payables
Receivables
Treasury
Global Financials
CRM
The Bank Account model reduces the number of access points to manage bank accounts by providing a centralized user interface where all internal bank accounts can be set up.
Bank account access in this model can be granted to multiple operating units, thus eliminating the redundant duplicate bank account setup under different operating units in case these operating units share the same bank account. This will also simplify the reconciliation process since now one bank account is the system corresponds to one bank account at the bank.
To set up Bank Account model:
Define Banks in Oracle Cash Management.
Define Bank Branches in Oracle Cash Management.
If you intend to use this bank account in Oracle Treasury as a company bank account, switch to that application, define Bank Counterparties and link them to Bank Branches that you have created. If you do not intend to use this bank account in Oracle Treasury, skip this step and proceed straight to the Bank Account definition.
Then, create your Bank Accounts in Oracle Cash Management.
If you do not intend to use this bank account in Payroll, then the setup process is complete for you. If you intend to use this bank account in Payroll, switch to that application and add Payroll properties.
When you access the bank setup, the first page shows you all the banks, bank branches and accounts that have already been created. You can navigate the hierarchy at the country, bank, branch and bank account level.
Related Topics
The first step in the bank account creation is the bank definition. The bank definition page allows you to search for existing banks, view and update them or create new banks.
You can search using the following parameters and clicking Go: Bank Name, Short Bank Name, Country, Alternate Bank Name, and Bank Number.
Navigate to the Manage Banks and Branches page, select the Banks tab, and click Create.
Select whether you want to create a new bank or enable an existing party defined in the Trading Community to be used as a bank.
Select or enter a country of origin for the bank.
Enter the Bank Name.
Optionally, you can enter an Alternative Bank Name, Short Bank Name, Bank Number, Description, Taxpayer ID, Tax Registration Number, XML Messages Email, and Inactive Date.
Click Finish to save your bank or click Save and Next to enter Bank Address information.
You can maintain several addresses for the bank in case, for example, when the bank has different mailing and physical locations. One of the addresses has to be marked as a primary or identifying.
On the Create Bank: Bank Address page and click Create.
Enter a site number for the address.
Select or enter a country
Enter the Address Line 1.
Optionally, you can enter Address Line 2, Address Line 3, Address Line 4, City, County, State, Province (Some countries only), Postal Code, Global Location Number, Addressee, Status, and Geography Code Override (Some countries only).
Note: The Status can be set as an Active or Inactive address and you can check the box to list the address as an Identifying primary address for the bank.
Click Apply to save the address.
Click Finish to complete the bank creation or click Save and Next to enter Bank Contact Information.
You can update and remove any existing addresses by selecting an address and clicking Update or Remove.
Note: You can also view and then restore any addresses that you had removed for the bank by clicking View Removed.
Similar to multiple addresses, you can maintain multiple contacts at the bank.
On the Create Bank: Bank Contact page and click Create Contact.
Enter Contact Information. You need only enter a First or Last (Family) Name, Start Date, and Email.
Optionally, you can enter Prefix, Middle Name, Suffix, Job Title Code, Job Title, Name Initials, Previous Last Name, Alias, Full Name Pronunciation, Contact Number, Department, Department Code, End Date and Comments regarding the contact.
You can also optionally add email details such as Purpose, Format, and Status. You can also indicate if the email address is the primary email for the contact by selecting the box.
You can optionally click Add Another Row to enter phone details of the contact such as Purpose, Type, Country Code, Area Code, Number, Extension, Status, and Time Zone.
Click Apply to save the contact.
You can update any existing contact by selecting an address and clicking Update.
Click Finish to complete the bank creation.
Bank branch creation is the next step after the bank creation. The bank branch definition page allows you to search for existing bank branches, view and update them or create new bank branches.
You can search using the following parameters and clicking Go: Branch Name, Branch Number, EDI Location, Alternate Branch Name, Country, or Bank Name.
Navigate to the Manage Banks and Branches page. select the Bank Branches tab, and click Create.
Select or enter the Country and Bank Name for which you are creating the branch and click Continue.
Select whether you want to create a new bank branch or enable an existing party defined in the Trading Community to be used as a branch.
Enter the Branch Name.
Select a Branch Type. The options are:
ABA: American Bankers Association
CHIPS: Clearing House Interbank Payment System
SWIFT: Society for Worldwide Interbank Financial Telecommunication
OTHERS
Optionally, you can enter an Alternate Branch Name, Branch Number, BIC, EDI Location, EFT Number, Description, RFC Identifier, and Inactive Date.
Payables uses the Bank Branch Number to identify the bank branch in payment formats that use electronic payment methods, in creating positive pay files, and when printing the MICR line on checks.
Note: For banks based in the United States, enter the American Banking Association nine-digit transit routing number as the Bank Branch Number. Also, if you use the National Automated Clearing House Association (NACHA) electronic payment format, then include the bank branch number on both internal and supplier banks. The combination of Branch Number, Bank Account Number, and Country must be unique within a bank.
Click Finish to save your branch or click Save and Next to enter Branch Address and/or Branch Contact information.
You can maintain several addresses for the bank branch in case, for example, when the branch has different mailing and physical locations. One of the addresses has to be marked as a primary or identifying.
Caution: Giving the branch address is entirely optional, therefore it may not allow you to complete the bank account creation process. You will have to provide the bank branch address and city minimum before creating a bank account.
On the Create Bank Branch: Branch Address page and click Create.
Enter a site number for the address.
Select or enter a country
Enter the Address Line 1.
Optionally, you can enter Address Line 2, Address Line 3, Address Line 4, City, County, State, Province (Some countries only), Postal Code, Global Location Number, Addressee, and Status.
Note: The Status can be set as an Active or Inactive address and you can check the box to list the address as an Identifying primary address for the bank.
Click Apply to save the address.
Click Finish to complete the bank creation or click Save and Next to enter Bank Branch Contact Information.
You can update and remove any existing addresses by selecting an address and clicking Update or Remove.
Note: You can also view and then restore any addresses that you had removed for the bank by clicking View Removed.
Similar to multiple addresses, you can maintain multiple contacts at the bank branch.
On the Create Bank: Branch Contact page and click Create Contact.
Enter Contact Information. You need only enter a First or Last (Family) Name, Start Date, and Email.
Optionally, you can enter Prefix, Middle Name, Suffix, Job Title Code, Job Title, Name Initials, Previous Last Name, Alias, Full Name Pronunciation, Contact Number, Department, Department Code, End Date and any comments regarding the contact.
You can also optionally add email details such as Purpose, Format, and Status. You can also indicate if the email address is the primary address for the contact by selecting the box.
You can optionally click Add Another Row to enter phone details of the contact such as Purpose, Type, Country Code, Area Code, Number, Extension, Status, and Time Zone.
Click Apply to save the contact.
You can update any existing contact by selecting an address and clicking Update.
Click Finish to complete the bank branch creation.
If you intend to create an internal bank account for use in Treasury, before proceeding to the bank account setup, you have to link the bank branch you have just created to the counterparty in Treasury. You can create a new or update an existing counterparty. In order to establish the link, you, first of all, need to check the Bank Branch check box. After you do that, a list of values will be enabled in the Full Name field. All the available bank branches will be shown there. You navigate to Setup, Parties, then the Counterparty Profiles window.
The Manage Bank Accounts page allows you to search for existing bank accounts, view and update them or create new bank accounts.
You can search using the following parameters and clicking Go: Account Name, Account Short Name, Account Owner, Bank Name, Alternate Account Name, Account Number, Currency, or Branch Name.
Select the bank branch to which your bank account belongs and proceed to the bank account setup. In the first step, you will have to select the owner of the bank account; the legal entity that opened this account at the bank. In the following steps, you will be able to define which organizations within your company will be able to use this bank account:
Navigate to the Manage Bank Accounts page and click Create.
Enter the Country, Bank Name and Branch Name.
Click Continue.
Enter the Bank Account Owner; the legal entity that owns the account.
Select the types of functions that this bank account is going to be used for: Payables, Payroll, Receivables, Treasury, or all. If the Treasury option is disabled, you have not linked this bank branch to the counterparty in Treasury.
Click Next.
Enter the Account Name.
Enter the Account Number.
Select to enter the Currency.
Optionally, you can enter an Alternate Account Name, Legal Account Name, Check Digit, IBAN, Account Type, Account Suffix, EFT Number, Secondary Account Reference, Account Holder, Alternate Account Holder, Description, Start Date, and End Date.
Click Save and Next.
Enter the cash account number.
Optionally, you can enter the Bank Charges Account Number, Realized Gains Account Number, Foreign Exchange Charges Account Number, Cash Clearing Account Number, Bank Errors Account Number, Realized Loss Account Number, and Agency Location Code.
If your enterprise is a United States federal agency, then you could enter an Agency Location Code. This code is assigned by the United States Department of the Treasury to identify the source of financial transactions.
Optionally, you can also select Yes if you want the Netting Account in the same currency.
Cash Management Controls
Optionally, you can enter Minimum Target Balance, Minimum Payment Amount, Rounding Factor, Cash Flow Display Order, Maximum Target Balance, Minimum Receipt Amount, and Rounding Rule.
Payables Controls
Optionally, you can select Multiple Currency Payments, Allow Zero Payments, and Pooled Account.
Optionally, you can enter Minimum Payment, Maximum Payment, and Maximum Outlay.
Receivables Controls
Optionally, you can select Multiple Currency Receipts.
Reconciliation Controls
Optionally, you can select Payables Matching Order 1, Payables Matching Order 2, Float Handling, and Receivables Matching Order.
Foreign Currency Bank
Optionally, you can select Exchange Rate Type and Exchange Rate Date.
Open Interface Controls
Optionally, you can select Use Reconciliation Open Interfaces and Open Interface Matching Criteria.
Optionally, you can enter Float Status and Clear Status.
Manual Reconciliation Tolerances
Optionally, you can enter Tolerance Amount and Tolerance Percentage.
Auto Reconciliation Tolerances
Payments
Optionally, you can enter Tolerance Amount, Tolerance Percentage, Foreign Tolerance Differences, and Tolerance Differences.
Receipts
Optionally, you can enter Tolerance Amount, Tolerance Percentage, and Foreign Tolerance Differences.
Cashflows
Optionally, you can enter Tolerance Amount, Tolerance Percentage, Foreign Tolerance Differences, and Tolerance Differences.
Open Interface
Optionally, you can enter Tolerance Amount and Tolerance Percentage, Foreign Tolerance Differences, and Tolerance Differences.
Click Save and Next.
Click Add Organization Access to define for which organizations and in which functional areas – Payables, Payroll, Receivables, Treasury, or all for which this bank account can be used.
For example, you can let Operating Unit # 1 use this bank account in Payables and Receivables, but limit Operating Unit # 2 to use this bank account only in Payables. If you choose a particular functional area for you bank account, you will be taken to the page where you may be required to enter certain bank account attributes that are unique for this particular functional area. It is also important to note that if you grant Operating Unit # 1 access to this bank account in Payables and Receivables, then all users who have been granted access to Operating Unit #1 will be able to use this bank account in Payables and Receivables (provided that the functional access has been granted to these uses as well).
Select the types of functions that this bank account is going to be used for: Payables, Payroll, Receivables, Treasury, or all. If the Treasury option is disabled, you have not linked this bank branch to the counterparty in Treasury.
Select the business group as the Organization.
Click Apply.
Click Save and Next.
You can maintain multiple contacts at the bank branch.
On the Create Bank Account: Account Contact page and click Create Contact.
Enter Contact Information. You need only enter a First or Last (Family) Name, Start Date, and Email.
Optionally, you can enter Prefix, Middle Name, Suffix, Job Title Code, Job Title, Name Initials, Previous Last Name, Alias, Full Name Pronunciation, Contact Number, Department, Department Code, End Date and any comments regarding the contact.
You can also optionally add email details such as Purpose, Format, and Status. You can also indicate if the email address is the primary address for the contact by selecting the box.
You can optionally click Add Another Row to enter phone details of the contact such as Purpose, Type, Country Code, Area Code, Number, Extension, Status, and Time Zone.
Click Apply to save the contact.
Click Finish to save your bank account.
The Bank Identification Code (BIC) (formerly called SWIFT Code) is entered at bank branch level.
BIC consists of either 8 or 11 characters. The BIC consists of the following elements:
4 characters for the bank code
2 characters for the country code (ISO3166-1)
2 characters for the location code
3 characters for the branch code (optional)
The length of the BIC will be validated at entry time. If the bank branch is used for SEPA payments, BIC is mandatory.
Related Topics
Overview of Single European Payments Area (SEPA)
International Bank Account Number
The International Bank Account Number (IBAN) is an international standard that uniquely identifies a bank account number.
IBAN consists of up to 34 contiguous alphanumeric characters containing the following consecutive components:
Country code: 2 letter country code, as specified in ISO 3166, of the country in which the bank or branch servicing the IBAN resides
Check digits: 2 digits calculated (calculated from a modulus algorithm)
Some countries also add the first 4 characters of the BIC code (between the check digits and the basic bank account number).
Basic Bank Account Number (BBAN): up to 30 alphanumeric characters, 0-9, A-Z (only uppercase), and no separators
The BBAN has a fixed length for each country. The BBAN includes an explicit identification code of the bank/branch servicing.
The IBAN is validated upon entry. If the bank account is used for SEPA payments, IBAN is mandatory.
Related Topics
Overview of Single European Payments Area (SEPA)
In this release, the Single European Payments Area (SEPA) feature is incorporated making it possible for consumers, businesses, and governments to make cashless payments from a single payment account using a single set of payment instruments throughout the 27 member states of the European Union and also in Liechtenstein, Iceland, Norway, and Switzerland. The goal is for these payments to be as inexpensive, efficient, and safe as domestic payments are today. Standardized payments are scheduled for January 1, 2008.
The SEPA payment schemes will operate alongside existing domestic payment schemes during the transition period (from 2008 till 2010) where customers can decide whether to use SEPA formats or not.
The SEPA enhancements in Oracle Cash Management through Oracle Payments are designed to improve straight-through processing and allow increased transparency into payment flows. Support is provided for the new ISO 20022 payment schemes as defined in the SEPA rule books enabling users to generate messages directly from their ERP system without having to implement additional middleware for data conversion.
In order to be able to make SEPA payments the following information (amongst others) is mandatory:
Bank Identification Code (BIC) for the suppliers bank branch.
International Bank Account Number (IBAN) for the suppliers bank account.
Related Topics
Bank Identification Code (BIC)
International Bank Account Number (IBAN)
Oracle Payments in this release cover the SEPA Credit Transfer (SCT) feature, which means enabling the Payment originator or payer to transfer money through their bank to the account of the beneficiary or supplier.
The SEPA Credit Transfer scheme is defined by the European Payment Council (EPC) as a set of rules, practices, and standards to support the creation and implementation of a core and basic credit transfer process whether for single, bulk or repetitive payments. The SCT will be governed by the EPC Rulebook and Implementation Guidelines Version 2.2 that were approved by the EPC in December 2006.
The SEPA Credit Transfer supports the ISO20022 message with the SEPA implementation: customer credit transfer initiation. This XML message contains all the relevant information related to the payment instruction and is sent by the Payment originator to the bank.
Related Topics
Overview of Single European Payments Area (SEPA)
International Bank Account Number
Advanced Global Intercompany System (AGIS) enables you to create, settle and reconcile intercompany transactions. Intercompany transactions are transactions that occur between two related legal entities in an enterprise or between groups in the same legal entity. Transactions that occur between two legal entities are called intercompany transactions and transactions that occur between two groups within one legal entity are called intracompany transactions.
Intercompany transactions must be processed in a consistent, systematic way across the enterprise. Use the Intercompany Setup tab to define the processing rules at the enterprise level.
AGIS setup is required to use the Bank Account Transfers feature. Use the Intracompany Balancing rule in AGIS if the bank account transfers are between the same ledgers; whereas, you use the Intercompany Accounts rule if the transfers are between different ledgers.
This section describes the Intercompany Accounting page.
This section describes key Intercompany accounting setup pages.
This section describes some of the common fields used in the Intercompany accounts setup pages.
The legal entity with the transacting (from) perspective in the intercompany trading relationship. The legal entity from which the intercompany transaction is initiated. Choose the transacting legal entity from the list of values.
The ledger with the transacting (from) perspective in the intercompany trading relationship. You can choose any ledger that is mapped to the transacting legal entity, including both primary and secondary ledgers, since intercompany accounts can be defined for both primary and secondary ledgers.
The balancing segment value for the transacting (from) perspective for which intercompany accounts are defined. The list of values displays all the balancing segment values in the transacting ledger to which the transacting legal entity is mapped.
The legal entity with the trading partner (to) perspective in the intercompany trading relationship. Choose the trading partner legal entity from the list of values. The list of values shows all legal entities to which you have access to and the value All Other.
The ledger with the trading partner (to) perspective in the intercompany trading relationship.
The balancing segment value for the trading partner (to) perspective for which intercompany accounts are defined. The list of values displays all the balancing segment values in the trading partner ledger to which the trading partner legal entity is mapped.
Use this page to query, create, and update intercompany accounts. To update intercompany accounts, query the trading legal entity and transacting ledger and click Update, or choose Create Accounts to create a new Intercompany account.
This page is the first step in creating a new intercompany account. To access the Define Accounts page, click Define Accounts.
Use this page to define Intercompany Receivables and Payables accounts. For each of these account types you must define at least one account.
Use this field to select an account to be used as the balancing account in subledgers and intercompany General Ledger journals.
This page is similar to the Create Intercompany Accounts page and allows you to update existing intercompany accounts.
Clicking View Reciprocal Accounts displays the accounts used by the Trading Partner (to) Legal Entity and Trading Partner (to) Balancing Segment Value to book intercompany transactions with the Transacting (from) Legal Entity and Transacting (from) Balancing Segment Value. View Reciprocal Accounts is inactive if the Trading Partner Legal Entity or Balancing Segment Value does not have reciprocal intercompany accounts defined, or if the Trading Partner Legal Entity resides on another applications instance, or if the value is All Other.
Use this page to query, create, or update intracompany balancing rules. To update a balancing rule, query the rule and select the rule from the results table. Choose Create Rule to create a new intracompany balancing rule.
Use this page to create new balancing rules. Before creating a new rule, you should query the rule on this page to ensure the rule does not already exist.
Ledger: Enter the ledger for which to define balancing rules. The list of values displays all the ledgers to which you have access and indicates whether the ledger is primary or secondary. The ledgers available here come from the Data Access Set assigned to your responsibility. The list of values displays only ledgers that are assigned to complete configurations in Accounting Setup Manager and that have the Enable Intracompany Balancing Journals check box checked on the Update Ledger: Ledger Options page.
Status: This field indicates whether the rule is enabled or disabled.
Additional Information Context: This field allows you to enter the context for the Intracompany Rule Descriptive flexfield. The information entered is only for your reference.
Credit Balancing Segment: This field represents the credit (party recording payable) balancing segment value. The list of values shows all of the balancing segment values allowed by your security profile. For each ledger-legal entity-source-category combination, there must be the default rule All Other-All Other.
Debit Account: This is the balancing account that the debit balancing segment value uses to balance when trading with the credit balancing segment value.
For balancing segment value - balancing segment value rules where values are explicitly chosen, the balancing account you choose is used exactly. However, when you select the value All Other, the Balancing API determines and substitutes the correct balancing and intercompany segment values at the time of balancing. For example, if you enter an account code combination 01.4000.02, it actually means xx.4000.yy, where xx is the balancing segment value of the debit balancing segment value on the journal and yy is the balancing segment value of the credit balancing segment value on the journal. The Balancing API substitutes these values during balancing.
Credit Account: This is the balancing account that the credit balancing segment value uses to balance when trading with the debit balancing segment value.
For balancing segment value - balancing segment value rules where values are explicitly chosen, the balancing account you choose is used exactly. However, when you select the value All Other, the Balancing API determines and substitutes the correct balancing segment value at the time of balancing. For example, if you enter and account code combination 02.2000.01, it actually means xx.2000.yy, where xx is the balancing segment value of the credit balancing segment value on the journal and yy is the balancing segment value of the debit balancing segment value on the journal. The Balancing API substitutes these values during balancing.
Level of Summarization:
Summary Net: If you select Summary Net, the Balancing API summarizes the debits and credits for each balancing segment value on the journal, determines the overall net debit or net credit for each balancing segment value, balances using the net amounts for each balancing segment value, and produces a summary balancing line for each balancing segment value. When processing in Summary Net mode, the Balancing API retains the differences in exchange rates for lines with the same balancing segment value. Negative debits are interpreted as positive credits and negative credits as positive debits, because each balancing segment value is summarized.
Summary Net is the default.
Detail: If you select Detail, each line on the journal is balanced individually and a balancing line is generated for each line on the journal. For lines with negative amounts (debits or credits), the sign of each original line is retained in the balancing line.
Clearing Balancing Segment Value Usage:
Use for All Journals: This option specifies that a clearing balancing segment value will be used for all types of journals. You can enter a clearing balancing segment value at the journal header level (in General Ledger only), or the default clearing balancing segment value will be used if no value is manually entered. This option is the default.
Use for Many-to-Many Journals Only: This option specifies that a clearing balancing segment value should be used only to clear many-to-many journals. You can enter a clearing balancing segment value at the journal header level (in General Ledger only), or the default clearing balancing segment value will be used if no value is manually entered.
Default Options:
Default options include specifying clearing options in case a clearing company should be used but none can be determined for the journal.
Default Clearing Balancing Segment Value: If no clearing company is specified for the journal, use the default clearing company. The list of values for the Default Clearing Balancing Segment Value is restricted to those that are mapped to the legal entity. If you choose the Default Clearing Balancing Segment Value, you need to enter a clearing balancing segment value.
Manually Entered Clearing Balancing Segment Value: If no clearing company is specified for the journal then an error occurs. This option should not be used with journals coming from subledgers because the clearing company cannot be specified in Subledger Accounting.
Default Rule: This option can be used with either Detail or Summary Net level balancing. The Default Rule is the rule defined for All Other-All Other. When this option is specified, balancing lines are built using the All Other-All Other rule, ignoring all the other rules defined in the Balancing Rules subtab.
Note: This option is not available if you set the Clearing Balancing Segment Value Usage to Use for All Journals. This option is available only if you set the Clearing Balancing Segment Value Usage to Use for Many-to-Many Journals.
Oracle Payments setup is required if you want to settle Bank Account Transfers through the Oracle Payments system.
On the funds capture side, the first party payee is the deploying company, or organizations within the deploying company, that receives funds from its customers, the payers, by credit card payments, debit card payments, direct debits to bank accounts, and bills receivable transactions sent to banks.
Before you can set up first party payees, you must perform the following setup steps:
payment systems
payment system accounts
payment methods
funds capture process profiles
The purpose of setting up first party payees is to tie the payment processing rules of the funds capture process profile to the business entities that need to use them.
In the Code field of the Create Payee page, enter a shortname for the payee. This value is not updateable in the Update Payee page.
In the Merchant Category Code field of the Create Payee page, enter a four-digit code that is usually supplied by the payment system, which identifies the industry in which the deploying company operates.
In the Payment System Accounts region of the Create Payee page, you select payment systems from the Payment System list of values that are used by the deploying company or its organizations. Additionally, you select payment system accounts from the Payment System Account list of values.
Each payment system is associated with one or more payment system accounts. The payment system account is an account identifier used by the deploying company's payment system, which is stored in Oracle Payments.
Note: If you do not select a payment system from the Payment System list of values, then all the payment system accounts are displayed in the Payment System Account list of values and the Payment System field is populated with the option that corresponds to the selected payment system account.
In the Assign Operating Units region of the Create Payee page, you can assign one or more operating units to the payee. The assignment of one or more operating units to a first party payee occurs because source products attribute each funds capture transaction to an operating unit. This setup allows Oracle Payments to map a transaction from an operating unit to a payee. Each operating unit may only be assigned to one payee.
Default payment systems are used by Oracle Payments to process transactions only if the routing rules do not specify a payment system account or none of the conditions in the routing rules are met for the transaction in question.
You can specify the level of transaction detail that is sent to the payment system for purchase card processing, along with the settlement. Level II of purchase card processing transaction detail includes the amount to be captured plus additional information, such as tax and shipping charges. Level III of purchase card processing transaction detail includes the amount to be captured plus tax and shipping charges, as well as itemization of the products or services purchased, such as one sweater, two pairs of slacks, and three pairs of shoes.
A risk formula is a group of risk factors plus weights, which tells Oracle Payments how to calculate the risk score of credit card transactions. A risk factor is any information, which a first party payee uses to evaluate the risk of a customer who wishes to buy products or services from the payee. Examples of risk factors are address verification, payment history, and transaction amount.
One or more risk formulas, comprised of risk factors, can be configured for each first party payee. First party payees can associate each risk factor with different weights that must total 100. Based on their business model, deploying companies can use any number of the seeded risk factors for their organizations.
The majority of the risk factors have associated updatable fields for which you enter information or select options. For some risk factors, such as address verification code or risk scores, your payment system provides values for you to enter.
A risk threshold is a number value, or score, between 0 and 100, above which, the deploying company may want to review or reject a credit card or a purchase card as payment for products or services. A zero risk threshold represents no risk and 100 represents the highest possible risk. The risk threshold value is determined and entered after reviewing all the risk factors for the particular payee and their associated weights.
Oracle Payments routes settlement requests to the appropriate payment systems. Each first party payee may have one or more routing rules with corresponding priorities. Routing rules determine which payment system account and which funds capture process profile are used to process funds capture transactions for specific payment methods.
Routing rules are comprised of destination information and one or more conditions that must be met if the funds capture transaction is to be routed using that rule's destination information. Destination information specifies the payment system account to which the transaction is routed. A condition is comprised of a criterion, (such as Amount, Currency, Organization, Card Type, or Bank Routing Number) an operator related to the criterion, and the value of the criterion. An example of a condition is Amount (criterion) Greater Than (operator) $1,000 (value).
Routing rule are prioritized and the one with the highest priority is evaluated by Oracle Payments first. If the values in the requested funds capture transaction match the conditions in the routing rules, the settlement request is routed to the applicable payment system account for processing.
A payment system is an organization that provides financial settlement services. Companies that deploy Payments typically choose payment systems to process their funds captures and, sometimes, their electronic funds disbursements payment instructions. A payment system can be the bank at which the deploying company has its bank accounts or it can be a third party processor that connects deploying companies with financial institutions. The latter is commonly the case for credit card processing. Payment systems are not required for printed funds disbursement payments, but may be required for related services, such as positive pay or other reporting.
Before you can set up payment systems, you must perform the following setup steps:
formats
transmission configurations
The purpose of setting up payment systems is to:
define the external organizations that Oracle Payments collaborates with to process your funds capture and funds disbursement transactions
define the deploying company's relationships with its payment systems
When creating a payment system on the Create Payment System setup page, you:
specify payment instruments the payment system will support on the funds capture side and/or the funds disbursement side
assign payment instruction formats to the payment system
assign transmission protocols to the payment
In this region, you can define parameters that the payment system requires for each transaction or settlement batch. When you define payment system accounts, you provide the actual payment system-provided values for these parameters.
On the funds capture side, payment systems play a central role in the creation of funds capture process profiles, since the creation of a funds capture process profile is payment system-specific. Funds capture process profiles specify how Payments processes settlements, including how the settlement is to be formatted and how it is to be transmitted.
On the funds disbursement side, the payment system plays a smaller role in the creation of payment process profiles, which are blueprints for payments that contain payment instruction formatting and transmission information, as well as payment grouping, payment limits, and payment sorting details.
A transmission configuration implements a specific transmission protocol, which allows the delivery of a transaction to a specific payment system or financial institution.
Each transmission protocol has parameters that require values. The values defined for the parameters comprise the transmission configuration for that transmission protocol. For example, the payment system, PaymentTech, may require a Socket IP Address of X and a Socket Port Number of Y. Together, X and Y represent Transmission Configuration A for a given transmission protocol.
The purpose of setting up transmission configurations in the Create Transmission Configuration setup page is to enable electronic connectivity with payment systems by specifying parameter values.
Oracle Payments supports funds capture bank account transfers for both business-to-consumer and business-to-business models. The funds capture bank transfer functionality facilitates electronic transfer of payment amounts from a customer's bank account to the payee's bank account. Online validations are online and real-time, while actual funds transfer transactions are offline. In addition to standard direct debits, Oracle Payments supports remittance of bills receivable instruments. Source products use Oracle Payments as their interface to payment systems that provide connectivity to appropriate clearing house networks.
A funds capture payment method is a payment medium by which a third party payer, such as a customer, chooses to remit payment to the first party payee, which is the deploying company. Oracle Payments supports three funds capture payment methods for automated funds capture processing: credit cards, PINless debit cards, and bank account transfers.
Oracle Payments seeds three updateable funds capture payment methods for credit card, PINless debit card, and bank account transfer instrument types and also seeds five updateable payer-initiated instrument types, such as check or wire transfer. For payer-initiated instrument types, Oracle Payments records the transaction, but does not perform any processing for these payment methods.
From the Funds Capture Payment Methods page, you can view and update the seeded funds capture payment methods or define new funds capture payment methods for bank account transfers only.
Once the funds capture payment methods are set up, they are available for selection by the source product user while creating or updating external payers. Additionally, source product users select one of the following seeded funds capture payment methods before submitting a payment transaction to Oracle Payments:
ACH (Automated Clearing House) Transfer
EFT (Electronic Funds Transfer) Bank Transfer
Credit Card
PINless Debit Card
Check
Cash Payment
Wire Transfer
Invoice
Offline Manual Payment
Note: Of those in the preceding list, the first two are bank account transfer methods and the last five are payer-initiated methods.
The purpose of setting up funds capture payment methods is to assign validation sets to seeded funds capture payment methods and to assign validation sets and define details of bank account transfers.
When you create a funds capture payment method for the processing type of bank account transfer, you enter user-defined values in the Code field, which is an identifier, or shortname, for the funds capture payment method you are creating.
In the Assign Validation Sets region, you assign applicable validation sets to the funds capture payment methods of processing type Bank Account Transfer that you are creating.
Note: The Assign Validation Sets and Descriptive Flexfields regions only display for non payer-initiated payment instrument types.
A funds capture process profile is a setup entity that acts as a blueprint for funds capture processing. It is equivalent to the payment process profile for funds disbursement processing. When you create a funds capture process profile, you specify funds capture processing rules for a specific payment system. These funds capture process profile rules include how:
online messages, such as authorizations, for bank account transfers, credit cards, and debit cards are formatted and transmitted
settlements are aggregated into a settlement batch
settlement batches are formatted and transmitted
acknowledgments received from the payment system are received and parsed
payment system account information is linked into the payment process
Before you can set up funds capture process profiles, you must perform the following set up steps:
formats
transmission configurations
payment systems
funds capture payment methods
The purpose of setting up funds capture process profiles is to specify funds capture processing rules for a specific payment system. The funds capture process profiles contain all the rules necessary for the execution of funds capture orders for specific payment systems.
The region name that you see in the Create Funds Capture Process Profiles page is dependent upon the option selected in the Processing Type drop-down list.
If you select Bank Account Transfer from the Processing Type drop-down list in the Create Funds Capture Process Profile page, the Online Payer Verification region displays. By selecting outbound and inbound payment system formats, as well as a transmission protocol, the deploying company ensures that it can:
send an online message to the payment system, asking it to verify that the transmission configuration is set up correctly to capture funds from customer bank accounts
receive an online response message from the payment system
Note: Online Payer Verification is an optional feature and is not offered by all payment systems.
If you select Credit Card from the Processing Type drop-down list in the Create Funds Capture Process Profile page, the Online Authorization region displays. By selecting outbound and inbound payment system formats, as well as the transmission protocol, the deploying company ensures that it can:
send an online message to the payment system, asking it to authorize an online credit card payment from the customer's credit card account with the issuing bank
receive an online response message from the payment system
If you select Debit Card from the Processing Type drop-down list in the Create Funds Capture Process Profile page, the Online Debit region displays. By selecting outbound and inbound payment system formats, as well as the transmission protocol, the deploying company ensures that it can:
send an online message to the payment system, asking it to debit a customer's checking account for payment through the customer's debit card
receive an online response message from the payment system
By selecting outbound and inbound payment system formats, as well as the transmission protocol, the deploying company ensures that it can:
send a settlement request to the payment system, which includes individual online settlements for gateway-model payment systems and settlement batches for processor-model payment systems
receive an online response message from gateway-model payment systems
Payer notification is a message sent by the deploying company to each of its customers after the settlement or settlement batch is transmitted, notifying them of a funds capture transaction. This notification is formatted according to the option selected in the Format field of the Payer Notification region and delivered to the payer, that is, the deploying company's customer, by e-mail, fax, or United States mail.
Note: If the payment system is a processor, then the Automatically Submit at Settlement Completion check box appears in the Payer Notification region of the Create Funds Capture Process Profile page. If the payment system is a gateway, then the Automatically Submit at Settlement Completion check box disappears from the Payer Notification region of the Create Funds Capture Process Profile page.
By selecting outbound and inbound payment system formats, as well as the transmission protocol, the deploying company ensures that it can:
Actively retrieve a response from the payment system, acknowledging that a settlement or batch settlement was received or not received from the deploying company.
Parse the acknowledgment message.
Acknowledgments are sent from the payment system to the deploying company, indicating whether credit card or bank account transfer settlements were made. Acknowledgments can be pushed by the payment system onto the deploying company's system, or the deploying company may need to actively retrieve acknowledgments from the payment system. Acknowledgments can also indicate whether the settlement batch was processed and had successes or failures.
A payment system can reject a settlement batch when the batch is incomplete or missing information.
Settlement grouping begins when you select check boxes in the Settlement Grouping region of the Create Funds Capture Process Profile page. Selection of settlement grouping attributes specifies that settlements with the same settlement grouping attributes will be included in a unique settlement batch when that Funds Capture Process Profile is used.
The grouping example in the table below illustrates how settlements A to D are grouped into settlement batches, given the three settlement grouping attributes selected for Funds Capture Process Profile Y. The following settlement grouping attributes are used in the example:
First Party Organization
First Party Legal Entity
Settlement Date
| Settlement | Settlement Attributes on Settlement | Unique Settlement Batches Contains... |
|---|---|---|
| A |
|
Settlement Batch I contains:
|
| B |
|
|
| C |
|
Settlement Batch II contains:
|
| D |
|
Settlement Batch III contains:
|
You can specify limits that apply to each settlement batch, including the maximum number of settlements in a batch.
The Exchange Rate Type drop-down list has the following options:
Corporate: An exchange rate you define to standardize rates for your company. This rate is generally a standard market rate determined by senior financial management for use throughout the organization.
Spot: An exchange rate which you enter to perform conversion based on the rate on a specific date. It applies to the immediate delivery of a currency.
User: An exchange rate you specify when you enter a foreign currency journal entry.
When you specify payment system accounts to be used with the funds capture process profile, you are effectively creating separate profiles at the account-level. By default, these account-level profiles are named by concatenating the funds capture process profile name and the payment system account name, but you can change it.
Once the identifier is entered, you can select the applicable transmission configuration that corresponds to each selected transmission protocol.
The transmission configuration options available in the Payment System Accounts region are dependent on the options selected in the Transmission Protocol fields.
Note: When you change options in the Transmission Protocols fields, you must clear the transmission configuration selections and reselect.
The following conditions apply to the selection of transmission configurations:
When you select a transmission protocol, the corresponding transmission configuration list of values only displays the transmission configurations for the selected transmission protocol.
If you do not initially select a transmission protocol and then select a transmission configuration, the corresponding transmission protocol field is populated.
You can add, delete, and modify signing authority information for your internal bank accounts in the Maintain Bank Account Signing Authority window. You can also update, track, and obtain approval for any exceptions or changes in signing authority records.
You can use existing individual profiles from Oracle Human Resources or create profiles for individuals that will be granted signing authority for an internal bank account. You can indicate single and joint limits, signer groups, effective dates, and approval status.
You can use Discoverer Views on the bank account signing authority information to view historical audit trails for changes made to the signatory information.
You can configure Oracle Approvals Manager and Oracle Workflow to set up rules to determine the required approvals and send workflow notifications when adding and updating signing authority information.
Enter the potential signing authorities in Oracle HRMS. Non-Oracle HRMS users can enter people in the Oracle HR Foundation Responsibility.
Set up internal bank accounts in Oracle Cash Management.
In the System Parameters window, select the appropriate option for the system parameter, Signing Authority Approval. The default is Workflow Enabled. Workflow will change the status of all new signing authorities from Pending to Approved when saved. To configure Workflow and manually control the approval status, you must select Manually Controlled.
Link your FND user ID or applications ID to a valid Person ID in Oracle HR to access the Bank Account Signing Authority window in the maintain mode.
(Optional) Modify or update the Lookup for Signing Group.
(Optional) Set up descriptive flexfields.
To enter bank account signing authority:
Navigate to the Maintain Bank Account Signing Authority window.
In the Find Bank Account window, select the bank account number for which you want to enter signing authorities.
Select the person name for whom the signing authority information is being entered. The Person Type, HR Organization, Job, Location, and Email information default in, if previously entered in Oracle HRMS.
Enter a single and/or joint signing limit.
Enter the Effective Start Date for this signing authority.
Enter or update the Group, Other Limitations, and Effective End Date.
(Optional) Add attachments to the new signing authority record.
Save your work.
You can update the Group, Other Limitations, Effective End Date, and Status information on an existing signing authority.
If a signer's limits change, you should update the existing signing authority record with an effective end date and enter another record with the new limits.
Similarly, if a signer's authority is revoked, you should update the end date on the record.
If you make an error when entering a signer's limits or effective start date, you should delete the record.
You may enter a signer multiple times on the same account, but you cannot overlap the effective date ranges.
If the start date of a new entry for the same signer and bank account is before the earliest start date of the existing entries, the end date should be prior to the earliest start date of the existing entries.
Example: The following records exists:
Signer A, Single Limit 50,000, Start Date 01-Jan-05, End Date 30-Jun-05
Signer A, Single Limit 70,000, Start 01-Jul-05, End Date <null>
If you want to add Signer A's limit for 2004, the start date and end date should be before 01-Jan-05.
If the start date of a new entry for the same signer and bank account is between the start dates of the existing entries, the end date should not fall on or between the effective date ranges of any existing entries.
Example: The following records exists:
Signer A, Single Limit 50,000, Start Date 01-Jan-05, End Date 31-Mar-05
Signer A, Single Limit 70,000, Start Date 01-Jul-05, End Date <null>
If you want to add Signer A's limit for April through June 2005, the start date and end date should be before 01-Apr-05.
You can view signing authority information by navigating to the View Bank Account Signing Authority window.
Account Number: Bank account number.
Account Name: Name of the bank account.
Bank Name: Name of the bank.
Bank Branch: Name of the bank branch.
Currency: Bank account currency.
Name: Name of the bank signatory.
Single Limit: The amount of the single signing limit. If the Single Limit is zero, then the Joint Limit should not be zero.
Joint Limit: The amount of the joint signing limit. If the Joint Limit is zero, the Single Limit should not be zero. If the Single Limit is greater than zero, including null, the Joint Limit should not be between zero and the Single Limit. The Joint Limit can be equal to or greater than zero or the Single Limit, including null.
Group: (Optional) User-defined lookup for bank signing authorities. Available values are Null, GROUP A, GROUP B, and GROUP C.
You can use this field to do the following:
Record bank requirements that signers be grouped in schedules, such as A, B, and C, according to their limitations.
Group signers according to a certain characteristic like location, and create groups with names like CORPORATE or LOCAL.
Record organization restrictions of joint signing authority by having signers in one group sign with a signer in a different group.
Other Limitations: (Optional) Any limitation information not conveyed in other fields, such as the rule of who can sign with whom.
Effective Start Date: The date the signing authority begins.
Effective End Date: The date the signing authority ends.
Status: The status of the signing authority. The status can be Approved, Pending, or Rejected.
Name: Name of the bank signatory.
Person Type: The classification of the bank signatory in Oracle HRMS.
HR Organization: The group or department the bank signatory belongs to.
Job: The job function of the bank signatory.
Location: The physical location of the bank signatory in the organization.
Email: The email address of the bank signatory.
The Discoverer view for Bank Account Signing Authority provides details and a historical audit trail of the changes made to the signing authority record. The Discoverer view of the Bank Signing Authority can be used to report on the bank account signing authority information.
The following table contains bank account signing authority messages and explanation of those messages.
| Error Message | Explanation |
|---|---|
| In order to maintain bank account signing authority, your FND user ID must be mapped to a valid person-id in HR. Please contact your system administrator. [OK] | FND user ID is not mapped to HR Person ID. |
| Do you want to save the changes you have made? [YES] [NO] [CANCEL] | Standard save changes message |
| Delete Message [text] | Standard confirm deletion message |
| The limit amount can not be negative. Please enter a new limit. [OK] | Negative limit amount |
| Please enter a limit amount. [OK] | Enter a signing limit amount. |
| The joint signing limit must be zero or greater than or equal to the single signing limit. Please enter a new amount. [OK] | Joint signing limit amount |
| The effective start date must equal or precede the effective end date. Please enter a new date. [OK] | Effective dates |
| The effective date ranges, of the records for a signer's limits, may not overlap. Please correct the effective dates. [OK] | Overlapping effective date ranges |
Cash pooling is a cash management technique aimed at optimizing the balances of the internal bank accounts held at one or several banks. It is usually performed on a daily basis.
To perform cash pooling, you need to define a cash pool and assign internal bank accounts to the cash pool.
Navigate to the Cash Pools Search and Results page.
Select the search parameters and click Go.
A cash pool is a group of bank accounts with one or more concentration accounts and multiple sub accounts. You can create the following two types of cash pools:
Notional Cash Pool: A cash pool consisting of one concentration account and multiple sub accounts. This type of cash pool is used for cash leveling similar to zero balancing without the actual funds movement. The cash pool's closing balance for a day is calculated as a notional sum of the individual balances of the bank accounts included in the pool. The interest is calculated on the notional net balance of all accounts included in the pool and then paid out or charged to the concentration or lead account. See: To Create a Notional Cash Pool.
Physical Cash Pool: A cash pool consisting of one or two concentration accounts and multiple sub-accounts with funds transfer rules specified for each combination of concentration accounts and sub accounts. This type of cash pool is used for cash leveling wherein the user can initiate fund transfers or mirror cash transfers performed by the bank. See: To Create a Physical Cash Pool.
Before creating Physical Cash Pools, you have to decide how the physical fund transfers will be recorded in the system. If you are using Oracle Treasury, you can choose to create fund transfers in Oracle Treasury or Oracle Cash Management by choosing one or the other in the site-level system CE: Bank Account Transfers profile option. If you are using Oracle Cash Management only, you will only be able to create fund transfers in Oracle Cash Management.
Navigate to the Cash Pools Search and Results page.
Select Notional Cash Pool.
Select Go.
In the Create Notional Cash Pool: Header Information page, enter a unique Cash Pool name.
Select a concentration account for your cash pool. The Account Number, Bank Name, Legal Entity, and Cash Pool Currency default in based on the selected bank account.
Note: You can only select bank accounts that you have access to, that have not been assigned to other cash pools, and for which the Interest Rounding and Interest Includes options have been assigned as a part of the Interest Rate Schedule.
In the Effective Date From field, enter the first date that the notional cash pool is active, such as the first date the consolidated bank account balances will be displayed on the Bank Balances page or the first date the interest will be calculated on the consolidated balance. If this value is left null, all available balances prior to the Effective Date To will be consolidated.
In the Effective Date To field, enter the last date that the notional cash pool is active, such as the last date of the consolidated bank account balances will be displayed in the Bank Balances page and the last date the interest will be calculated on the consolidated balance. If this value is left null, all available balances after the Effective Date From will be consolidated.
Click Next to assign sub accounts.
In the Create Notional Cash Pool: Sub Accounts page, select bank accounts to include as sub accounts for your cash pool.
In the Create Notional Cash Pool: Review page, review the information you have entered.
Click Finish to save the cash pool.
Navigate to the Cash Pools Search and Results page.
Select Physical Cash Pool.
Select Go.
In the Create Physical Cash Pool Header Information page, enter a unique name for your cash pool.
In the Concentration Type field, select either One Account or Two Accounts to indicate if the cash pool will have one or two concentration accounts.
If you select the One Account option, the Concentration Account field is displayed.
Select a Concentration Account. The Account Number, Bank Name, Company, and Cash Pool Currency default in.
If you select the Two Accounts option, the Investment Concentration Account field and the Funding Concentration Account field is displayed.
Select an Investment Concentration Account and a Funding Concentration Account for the cash pool. The Account Number, Bank Name, Legal Entity, and Cash Pool Currency default is based on the selected bank accounts. Both the investment and funding concentration accounts should belong to the same legal entity.
In the Effective Date From field, enter the first date that the physical cash pool is active, such as the first date the cash leveling or ZBA transactions can be created.
In the Effective Date To field, enter the last date that the physical cash` pool is active, such as the last date the cash leveling or ZBA transactions can be created.
In the Bank Initiated Sweeps field, select Yes if your bank initiates the cash leveling transactions. Select No if you want to use this cash pool to create transactions in the system and send payment instructions to the bank.
Select Next to assign sub accounts.
In the Create Physical Cash Pool: Sub Accounts page, select bank accounts to include as sub-accounts in the cash pool.
Select Next.
In the Create Physical Cash Pool: Target Balances page, define target balances and transfer amount calculation rules for each sub account . If target balances for sub accounts included in the cash pool have already been defined in the bank account setup, they will default here.
Select Next.
If your system profile option CE: Bank Account Transfers is set to Treasury, in the Create Physical Cash Pool: Treasury Deal Attributes page, select the attributes that are required for creating transactions in Oracle Treasury during cash leveling for company-initiated transfers, or during sweep transaction generation for bank initiated sweeps. See: Reconciling Sweep Transactions.
If your system CE: Bank Account Transfers profile option is set to Cash Management, in the Create Physical Cash Pool: Bank Account Transfer Attributes page, select that attributes that are required for creating transactions in Oracle Cash Management during cash leveling for company-initiated transfers, or during sweep transaction generation for bank initiated sweeps. See: Reconciling Sweep Transactions
Select Next.
In the Create Physical Cash Pool: Review page, review the information you have entered.
Click Finish to save the cash pool.
Search for the cash pool the Search and Results page. Click the cash pool name you want to update.
Note: You can update the cash pool only if you have appropriate user security allocated to you.