PeopleSoft Banks Setup and Processing 9.1 PeopleBook

Setting Up Banks

This chapter provides an overview of PeopleSoft bank setup and discusses how to:

Define general bank setup.
Define bank information.

Understanding Bank Setup

Before you can move funds in and out of PeopleSoft Financials, you must define banks and bank accounts in the system. You define as many banks and bank accounts as you need to manage your funds. For each bank, you can also define various processing defaults.

In PeopleSoft, a bank is any financial institution with which your organization maintains a banking relationship. A counterparty is a bank that has a trading relationship with your organization. You must set up bank information before you can define counterparty information.

When you define bank information, you define a hierarchy of information: first, the general bank setup; second, the bank detail information (general information such as bank and branch information, and processing information such as payment methods for bank accounts). Once you have established this core banking data, you can then define settlement instructions (predefined bank account specifics for handling cash inflows and outflows), account types (external, internal, or netting) and additional banking functionality. Finally, you define your counterparty information.

PeopleSoft bank functionality is available to PeopleSoft Cash Management, Deal Management, Risk Management, Expenses, Payables, Receivables, and General Ledger. Establishing your banks, bank accounts, and counterparties involves several steps that vary depending on which applications you have installed. Your banks supply information such as account, bank ID, branch ID, and other Depository Financial Institution (DFI) numbers. Other information depends on how you and your customers, vendors, and counterparties agree to set up payment, receipt, and settlement procedures.

See Also

Setting Up Counterparties

Understanding IBAN

The International Bank Account Number (IBAN) format was developed by European Committee for Banking Standards (ECBS) and the International Organization for Standardization (ISO) to streamline the straight-through processing—the automatic debiting of the ordering customer and crediting the beneficiary account—of cross-border payments. SEPA usage rules require the use of BIC and IBAN codes to uniquely identify the banks and bank accounts of the creditor and debtor in all Euro cross-border payments. Besides improving the efficiency of processing cross-border payments, IBAN also makes it easier to validate foreign account numbers. The IBAN format is an internationally agreed upon standard that is defined in ISO 13616.

The IBAN varies in length depending on the country, but no IBAN is greater in length than 34 alphanumeric characters. The IBAN is composed of:

Country code

The first two characters of the IBAN are the letters that identify the country as specified in ISO 3166.
IBAN check digits

Two numeric digits that are used in the algorithm designed to formally validate the IBAN.
Basic Bank Account Number (BBAN)

The identifier used by financial institutions in individual countries as part of National Account Numbering Schemes that uniquely identifies an account of a customer at a financial institution. Also known as the Domestic Bank Account Number. Included in the BBAN are the:
- BIC/SWIFT code. (bank identifier code/society for world international financial telecommunication)
  
  BIC, also know as the SWIFT code, identifies the bank and possibly the bank branch. To enable bank compliance, you must enter a BIC code for your bank. The system validates the formatting of the code, but not the value of the BIC.
- Account number.
  
  The customer's bank account number.
- Bank check digit.
  
  The one or two digits that are used in the formal validation of the domestic bank account.

PeopleSoft IBAN Processing

PeopleSoft provides sample IBAN formats for 38 countries. These formats can be viewed on the IBAN Formats page. The IBAN can be displayed on various PeopleSoft Financial application pages. These pages afford the user the ability to enter the IBAN manually or have the application generate it after the user enters the IBAN check digit. The method used can be done on a country-by-country basis that is determined by the IBAN Enterable field located on the IBAN Formats page.

Defining General Bank Setup

To define rating agencies and credit ratings, use the Credit Ratings/Rating Agency component (CREDIT_RTG_TBL_GBL).

To define bank identification qualifiers, use the Bank ID Qualifiers component (BANK_ID_QUALS_GBL).

To define payment forms, use the Payment Forms component (PYMNT_FORM_PYMNT_GBL).

To define IBAN formats, use the IBAN Formats component (IBAN_FORMAT_GBL).

Before you begin to define your banks, you must define the supporting data.

This section discusses how to establish:

Credit ratings.
Bank ID qualifiers.
IBAN formats.
Payment forms.
Payment sort fields.

Pages Used to Define General Bank Setup

Page Name	Definition Name	Navigation	Usage
Credit Ratings/Rating Agency	CREDIT_RTG_TBL	Set Up Financials/Supply Chain, Product Related, Treasury, Credit Ratings/Rating Agency	Define rating agencies and their associated credit ratings.
Bank ID Qualifiers	BNK_ID_QUAL_PNL	Banking, Banks and Branches, Bank ID Qualifiers	View the ID qualifiers that the system uses to edit bank values.
IBAN Formats	IBAN_FORMAT_TBL	Banking, Banks and Branches, IBAN Formats	View IBAN formats and generate sample IBANs.
Form Information	PYMNT_FORM	Banking, Banks and Branches, Payment Forms, Form Information	Enter attributes related to your forms of payment.
Sort Fields	PYMNT_FORM_SORT	Banking, Banks and Branches, Payment Forms, Sort Fields	Select the grouping of fields used to sort your forms of payment.

Establishing Credit Ratings

Access the Credit Ratings/Rating Agency page (Set Up Financials/Supply Chain, Product Related, Treasury, Credit Ratings/Rating Agency).

Value

Displays the value by which to rank the ratings in ascending order. 1 is the highest rating. This value assigns a numeric equivalent to an alphanumeric rating so that you can implement any processes or credit reports needed for your organization.

Rating

Displays the actual alphanumeric rating that the rating agency assigns.

Establishing Bank ID Qualifiers

Access the Bank ID Qualifiers page (Banking, Banks and Branches, Bank ID Qualifiers).

PeopleSoft delivers predefined bank ID qualifiers, which you should typically not modify.

Bank ID Qualifier

Displays the country-specific numeric value for a bank. This value controls how the bank and counterparty pages edit and display bank information. This information drives bank account edits, which can vary by country for each bank type. In some cases, a country may have more than one ID.

Each bank ID qualifier indicates a specific type of bank with specific identifying information. For example, when the system encounters a bank ID qualifier of 001 (indicating a U.S. bank), the system validates that you entered a valid check digit for an ABA transit routing number for the bank qualifier.

Note. If you add a new bank ID qualifier, you must write PeopleCode to match the new value. This code appears in the record PeopleCode for FUNCLIB_LCINTFC.BANK_ID_QUAL in the FieldFormula event. We suggest that you make this page a display-only page or use PeopleTools security to limit access to system administrators only.

This table describes the system-delivered data.

Note. Qualifiers marked with (no field validation) have no rule validation. If you want the system to automatically perform rule validation routines, you must write the appropriate PeopleCode. For more information, refer to the European Committee for Banking Standards website at http://www.ecbs.org. You can access various countries' bank account numbering conventions and specifications at http://www.ecbs.org/tr201country.htm.

Bank ID Qualifier	Bank ID (Defining Banks)	Bank Account Number (Bank Accounts)	Branch	Check Digit
001 U.S. Bank	9-digit transit routing number. Exactly 9 numerics with check digit calculation.	NA	NA	NA
002 Canadian Bank	Exactly 4 numerics.	Between 7 and 12 numerics.	Branch routing number Exactly 5 numerics.	NA
003 Australian Bank	Exactly 3 numerics.	Max 9 numerics.	Exactly 3 numerics.	NA
005 Great Britain Bank	Exactly 6 numerics. (Sort Code)	Max 10 numerics.	NA	NA
006 Spanish Bank	Exactly 4 numerics.	Exactly 10 numerics.	Exactly 4 numerics.	Exactly 2 digits with check digit algorithm.
007 Netherlands Bank	NA*	Exactly 10 numerics with modulus 11 check.	NA	NA
008 Netherlands Giro	NA*	Max 7 numerics.	NA	NA
009 French bank	Exactly 5 numerics.	Max 11 characters.	Exactly 5 numerics.	Check digit algorithm.
010 German Bank	Exactly 8 numerics.	Max 10 numerics.	NA	NA
011 Great Britain Building Society	Exactly 6 numerics. (Sort Code)	Max 10 numerics.	NA	NA
012 Swiss Bank	Between 3 and 5 digits.	Max 16 characters.	NA	NA
013 Belgian Bank	Exactly 3 numerics.	Max 7 numerics.	NA	2 numerics with 97 modulus check.
014 Japan Bank	Exactly 4 numerics.	Max 7 numerics.	Exactly 3 numerics.	NA
015 Norwegian Bank (no field validation)	NA	NA	NA	NA
016 Italian Bank	Exactly 5 numerics.	Max 12 alphanumerics.	Exactly 5 numerics.	1 alpha with check digit algorithm.
020 Swiss PPT(no field validation)	NA	NA	NA	NA

See Also

PeopleTools PeopleBook: Security Administration, "Working with Permission Lists"

Defining IBAN Formats

Access the IBAN Formats page (Banking, Banks and Branches, IBAN Formats).

This page displays the formatted components of the International Bank Account Number (IBAN) based on the three-character, European country code selected in the first column. The IBAN is composed of a country code, IBAN check digits, and the Basic Bank Account Number (BBAN)—all the information needed to route a payment through any national clearing house. PeopleSoft supports and provides sample data for 38 countries.

Note. Because the two-character, country code and IBAN check digits are always the first four characters of an IBAN, it is not necessary to include columns defining their position and length on this page.

Country	Select the three-letter country code for a specific European country.
IBAN Enterable	This box determines how the IBAN is entered on various PeopleSoft Financials application pages. If Selected, the user enters the IBAN manually. If left unchecked, the user enters a two-character, IBAN, check digit and clicks a View IBAN button to have the system generate it. Note. Previous to PeopleSoft Enterprise 9 Financials, IBAN was supported only for Belgium, France, Germany, Ireland, Italy, Netherlands, Spain, Switzerland, and the United Kingdom, and only by using the check-digit entry method. For those nine countries, the default setting for the IBAN Enterable field is unchecked. Any of these countries can be configured to support entering the IBAN manually by selecting this box.
Bank ID Pad, DFI ID Pad, Branch ID Pad, and Account Pad	If selected, leading zeroes will be prefixed to the ID value to extend it to its maximum length.
Bank ID Start	Enter where the first alphanumeric character of the bank identification value will appear in the IBAN.
Bank ID Length	Enter the number of characters making up the bank identification value.
DFI Start	Enter where the first alphanumeric character of the DFI code will appear in the IBAN. The DFI is a bank identifier that may be included in the IBAN ID when the DFI Qualifier is set to SWIFT on bank-account related pages (for example, the Beneficiary Bank page).
DFI Length	Enter the number of characters making up the DFI code.
Branch ID Start	Enter where the first alphanumeric character of the branch ID code will appear in the IBAN.
Branch ID Length	Enter the number of characters making up the branch ID code.
Account Start	Enter where the first alphanumeric character of the bank account will appear in the IBAN.
Account Length	Enter the number of characters making up the bank account.
Check Digit Start	Enter where the first alphanumeric character of the bank check digit will appear in the IBAN. Note. This is the check digit used in the formal validation of the domestic bank account, not the IBAN check digit.
Check Digit Length	Enter the number of characters making up the bank check digit.

IBAN Format Tester

Select a country code and click Format to generate a sample IBAN for any of the PeopleSoft-supported countries.

Note. PeopleSoft is not responsible for the validity of IBANs manually keyed in any of the bank-account related pages. The IBAN should be provided by a financial institution.

See Defining External Accounts Information.

See Defining Settlement Instructions.

See Specifying Destination Information.

See Maintaining General Customer Information.

See Defining Accounting Data for PeopleSoft Expenses.

Establishing Payment Forms

Access the Form Information page (Banking, Banks and Branches, Payment Forms, Form Information).

For the form ID that you select, the system displays a payment form image in the Preview group box.

Form Attributes

Form Type

Indicates whether the payment prints on check stock or is an electronic file. Select one of these options:

System numbered form: The system generates check numbers to print on the payment forms.

Pre-numbered form: The check stock has preprinted check numbers. The system does not generate check numbers, but keeps track of the payment references and can warn you of any discontinuity in reference numbers.

ASCII file: EFT or positive payment files.

Remittance Advice only: Wire transfers (through Pay Cycle Manager) and letters of credit.

Form Alignment Count

Aligns the printer head with the first row of the form so that checks and advice print correctly. You use this field only with system-numbered forms.

Advice Attributes

Advice Location	Select where the payment advice prints. Options are: Same report as check: Below or above the check on the same form. Separate advice report: Separate job from the check. You must load two different forms: one for the checks and one for the advice. No advice: No advice lines.
Overflow Location	Select where information prints, if it does not fit on one page. Options are: Same report as check: If more advice lines are required than the number of lines on the check form, the system uses a second check form for advice lines and voids the check. Separate advice report: The system uses a separate advice form for overflow. You must load two different forms: one for the checks and one for the advice. The system creates two separate reports. No advice report: No advice lines.
Advice Lines	Displays the total number of lines that print on your advice. Enter the number of lines available for the advice. This differs depending on whether the advice is on the same report as the check or on a separate report. The information that you assign must fit on the check space.
Advice Layout	Displays where the check and advice are positioned on the printed page. The report determines the layout, so this field is only informational. Match the description to how you define the report. Options are: Check over stub: Positions the check over the advice. Full page: Sends the advice lines to a separate page from the check and a separate file. Giro layout: Sends the advice lines in a Giro-EFT file. Stub over check: Positions the advice over the check.

Establishing Payment Sort Fields

Access the Sort Fields page (Banking, Banks and Branches, Payment Forms, Sort Fields).

Select the fields that you want to use to sort your check output. Enter sequence numbers for sorting priority.

Defining Bank Information

To define bank information, use the following components:

Bank Information component (COUNTERPARTY_DEFN_GBL).
Bank Branch Information component (BANK_BRANCHPNL_GBL).

Use the TR_BANK_BRANCH_CI component interface to load data into the Bank Branch Information tables.
Contact Information component (CONTACT_INFO_GBL).

Use the CONTACT component interface to load data into the Contact Information tables.
Settlement Instruction component (SETTLEMENT_INSTRUC_GBL).

Use the TR_SETTLEMENT_INSTRUCTIONS_CI component interface to load data into the Settlement Instruction tables.

This section discusses how to:

Define bank information.
Define bank addresses.
Set up electronic statements.
Define bank branches.
(Optional) Define bank branch addresses.
(Optional) Define branch contacts.
Define beneficiary bank information.
(Optional) Define beneficiary bank EFT options.
Define beneficiary bank addresses.
Define financial contacts.
(Optional) Define financial contact addresses.

See Also

Working with VAT

Pages Used to Define Bank Information

Page Name	Definition Name	Navigation	Usage
Bank Information	BANK_PNL1	Banking, Banks and Branches, Bank Information	Define each bank and its general characteristics.
Address Information	BANK_ADDR_PNL	Click Address Information on the Bank Information page.	Capture the address and phone information for the bank.
Bank Contact Notes	BANK_NOTES_SP	Click Notes on the Bank Information page.	Enter miscellaneous notes for the bank.
VAT Defaults Setup (value-added tax defaults setup)	VAT_DEFAULTS_DTL	Click VAT Defaults on the Bank Information page.	Specify default VAT information for a bank. See Working with VAT.
Bank Branch Information	BANK_BRNCHPNL	Banking, Banks and Branches, Bank Branch Information	Define bank branch information.
Address	BRANCH_ADDRESS_SEC	Click Address Information on the Bank Branch Information page.	Set up the bank branch address.
Bank Contacts	BRANCH_PNLCNTCT	Click Contact Information on the Bank Branch Information page.	Set up contact information for a specified branch.
VAT Defaults Setup (value-added tax defaults setup)	VAT_DEFAULTS_DTL	Click VAT Defaults on the Bank Branch Information page.	Specify default VAT information for a bank branch.
Contact Information	TR_CONTACT_PNL	Banking, Banks and Branches, Contact Information	Enter information about how to contact the people with whom you do business.
Contact Address Information	TR_CONTACT_ADDRSEC	Click Address Information on the Contact Information page.	Enter address information for your financial contacts. Note. You must enter branch address information correctly for this information to be available for use in Billing.

Defining Bank Information

Access the Bank Information page (Banking, Banks and Branches, Bank Information).

Type

Select a bank type. Options are:

External: A bank or counterparty that exists separately from your organization. Most banks and brokerage firms are in this category. External banks are those you conduct business with outside of your organization, such as banking partners, brokers, issuers, and guarantors. You can associate external banks with a reconciliation method, cutoff times, settlement instructions, vendor banks, customer banks, and employee banks.

Internal: A bank or counterparty that is part of your organization (for example, a central treasury, a subsidiary company, or an operating division).

Netting: A Receivables or Payables counterparty with whom you have established a netting contract to roll up transactions and thus decrease the overall number of transactions between parties.

Origin: A Receivables or Billing entity that holds funds until they are transferred to a bank. Typically, this is an organization with which you have a lock-box banking arrangement.

(USF) Agency Location Code (United States federal agency location code)

To reconcile U.S. federal government schedule ID payments, select the U.S. Treasury Disbursing Office that is disbursing payments for Treasury Schedules (known as SF-1166 Voucher and Schedule of Payments). This option applies only to banks with a default currency of USD.

The General Ledger report GLSF224P uses the Agency Location Code (ALC) when reporting General Ledger, Receivables, and Payables cash activity to the federal government.

See General Ledger Reports: A to Z.

Bank ID Qualifier

Select a bank qualifier, if one is defined for the bank's country. The system uses the bank qualifier to validate values when you create accounts for the bank.

Bank ID

Enter a bank ID, to use electronic banking. This is the code by which the bank identifies itself. The code is contained in the electronic statement and edited according to rules driven by the bank ID qualifier. This field is accessible only for external and origin bank types.

Immediate Origin and Immediate Destination

Enter origin and destination routing codes for electronic transfers. Obtain the codes from your bank.

Important! You can define the same bank ID for different setIDs; however, you can define a specified bank account number only once per bank ID.

Bank Options

The bank type determines the options that are available in the Bank Options group box.

Internal BU (internal business unit)	Denotes a bank or counterparty that is an internal business unit. This option applies only to internal bank types. If you select this check box, then also specify the General Ledger unit with which it is associated.
Treasury Counterparty	Denotes a bank or counterparty with which you transact deals. Select to use a counterparty for transactions in Deal Management. This option applies to both internal and external bank or counterparty types.
Banking Counterparty	Denotes a bank or counterparty with which you maintain a banking relationship. Most commercial banks fall within this category. This option applies only to external bank or counterparty types and enables you to associate external accounts with this entity.
Financial Sanction Validation	This field appears only if Enable in Treasury Settlements or Payables Enabled at Bank is selected on the Financial Sanctions Option page. Selecting this field in conjunction with Enable in Treasury Settlements on the Financial Sanctions Option page, will initiate a financial sanctions search and validation of the payee before dispatching settlements originating from this bank in Cash Management. For Payables and eSettlement, selecting this field in conjunction with Payables Enabled at Bank on the Financial Sanctions Option page will initiate a search and validation of vendors at payment time. See Setting Financial Sanctions Options.
Notes	Click to enter miscellaneous notes about the bank.
VAT Default (value-added tax default)	Click to access the VAT Defaults Setup page. The VAT Defaults Setup page is a common page used to set up VAT default settings for all PeopleSoft applications processing VAT transactions. On this page, you can define bank information defaults as applicable.

Note. The VAT Defaults link appears on all Bank Information pages; however, it is available only if the country for the bank is set up for VAT.

Working with VAT

Defining Bank Branches

Access the Bank Branch Information page (Banking, Banks and Branches, Bank Branch Information).

Bank ID Qualifier

Select a bank qualifier, if one is defined for the branch's country. The system uses the bank qualifier to validate values when you create accounts for the branch.

Branch ID

Enter a numeric branch ID, if one is defined for this bank branch.

VAT Registration Options

Bank branches represent physical bank locations. In order for the system to determine the appropriate VAT treatment for transactions generated through each branch, you must define the VAT registration information, as well as the VAT default parameters to use in VAT accounting.

Register Branch for VAT (register branch for value-added tax)

Select the check box and enter the VAT Registration ID, which the system automatically validates.

Use VAT Suspension (use value-added tax suspension)

Select if bank has been selected as a supplier that suspends charging VAT.

Note. You must first set two other VAT suspension settings in PeopleSoft to enable the VAT suspension functionality: you must select the Use VAT Suspension check box on the VAT Country table and set the VAT Exception Type for the VAT entity to Suspension. In order for a VAT applicable transaction to be marked as suspended, these three settings (VAT Country, VAT Exception Type for VAT entity, and the bank branch set as a VAT suspended supplier) must be in place.

VAT Defaults (value-added tax defaults)

Click to access the VAT Defaults Setup page. The VAT Defaults Setup page is a common page used to set up VAT defaulting for all PeopleSoft applications processing VAT transactions. On this page, you can define bank branch information defaults as applicable.

Note. The VAT Defaults link appears on all Bank Branch Information pages; however, it is available only if the country for the bank is set up for VAT and the Register Branch for VAT check box is selected.

See Also

Working with VAT

Defining Branch Contacts

Access the Bank Contacts page (click Contact Information on the Bank Branch Information page).

Contact ID	Select a contact ID to automatically populate the Name, Contact Title, and Telephone fields.
Edit Contact Information	Click to access the Financial Contact Information page and edit contact information.

Defining Financial Contacts

Access the Contact Information page (Banking, Banks and Branches, Contact Information).

Contact Type	Select the contact type. Options are: Accounts Payable, Billing Contract, Broker, Commercial Paper Contact, Contract Collaborator, Executive Management, External Contact, General, Internal Corporate Contact, Investment Pool Contact, Line of Credit Facility, Sales Contact, Service Contact, or Warehouse/Shipping Contact.
Bank Code	Displays the code of the banks with which the contact is associated.

Value	Displays the value by which to rank the ratings in ascending order. 1 is the highest rating. This value assigns a numeric equivalent to an alphanumeric rating so that you can implement any processes or credit reports needed for your organization.
Rating	Displays the actual alphanumeric rating that the rating agency assigns.

Type	Select a bank type. Options are: External: A bank or counterparty that exists separately from your organization. Most banks and brokerage firms are in this category. External banks are those you conduct business with outside of your organization, such as banking partners, brokers, issuers, and guarantors. You can associate external banks with a reconciliation method, cutoff times, settlement instructions, vendor banks, customer banks, and employee banks. Internal: A bank or counterparty that is part of your organization (for example, a central treasury, a subsidiary company, or an operating division). Netting: A Receivables or Payables counterparty with whom you have established a netting contract to roll up transactions and thus decrease the overall number of transactions between parties. Origin: A Receivables or Billing entity that holds funds until they are transferred to a bank. Typically, this is an organization with which you have a lock-box banking arrangement.
(USF) Agency Location Code (United States federal agency location code)	To reconcile U.S. federal government schedule ID payments, select the U.S. Treasury Disbursing Office that is disbursing payments for Treasury Schedules (known as SF-1166 Voucher and Schedule of Payments). This option applies only to banks with a default currency of USD. The General Ledger report GLSF224P uses the Agency Location Code (ALC) when reporting General Ledger, Receivables, and Payables cash activity to the federal government. See General Ledger Reports: A to Z.
Bank ID Qualifier	Select a bank qualifier, if one is defined for the bank's country. The system uses the bank qualifier to validate values when you create accounts for the bank.
Bank ID	Enter a bank ID, to use electronic banking. This is the code by which the bank identifies itself. The code is contained in the electronic statement and edited according to rules driven by the bank ID qualifier. This field is accessible only for external and origin bank types.
Immediate Origin and Immediate Destination	Enter origin and destination routing codes for electronic transfers. Obtain the codes from your bank.

Bank ID Qualifier	Select a bank qualifier, if one is defined for the branch's country. The system uses the bank qualifier to validate values when you create accounts for the branch.
Branch ID	Enter a numeric branch ID, if one is defined for this bank branch.