Setting Up Counterparties

This chapter discusses how to set up counterparties.

Click to jump to parent topicDefining Counterparty Information

To define treasury counterparties, use the Treasury Counterparties component (BANK_PNL_TR_GBL).

A counterparty is a bank that has a trading relationship. You must set up the bank before you can define counterparty information.

This section discusses how to:

  1. Define counterparties.

  2. (Optional) Define counterparty address information.

  3. Define settlement instructions for counterparty deals.

Click to jump to top of pageClick to jump to parent topicPages Used to Define Counterparty Information

Page Name

Definition Name



Treasury Counterparties


Banking, Banks and Branches, Treasury Counterparties

Establish counterparties.

Address Information


Click Address Information on the Counterparty Information page.

Enter your counterparty's address.

Settlement Instructions


Click Settlement Instructions on the Counterparty Information page.

Specify, by currency, the counterparty's account into which your payments will be directed as a result of deals transacted with this counterparty.

Click to jump to top of pageClick to jump to parent topicDefining Counterparties

Access the Treasury Counterparties page (Banking, Banks and Branches, Treasury Counterparties).

Most of the fields on this page are the same as the fields on the Bank Information page. We describe only the fields that are unique to this page.

Counterparty Options

Corporate Treasury

Select if a bank is a regional or corporate treasury. This option applies only to internal bank types. Corporate treasury entities have special rights within PeopleSoft Treasury, such as servicing internal accounts. You can designate multiple internal counterparties as a corporate treasury. If you select this check box, you should also specify the general ledger unit with which it is associated. When you select this check box, the system automatically selects the Internal BU check box.

Counterparty Roles

Select the check boxes that reflect the activities in which this counterparty is involved. Options are: Deal Counterparty, Issuer, or Broker.

See Also

Defining Bank Information

Click to jump to top of pageClick to jump to parent topicDefining Settlement Instructions for Counterparty Deals

Access the Settlement Instructions page (click Settlement Instructions on the Counterparty Information page).

You can specify netting options and payment instructions for deals associated with a specified counterparty.

Note. Netting options specified here are used only in the deal settlement netting process; these options are not used in the bilateral account netting process.

See Specifying Instructions for Settling Deals.

Settlement Netting Options

Select a netting option for this counterparty.

Do Not Net

Select if no netting takes place for transactions with this counterparty.


Select if both positive and negative cash flows for each currency are netted, resulting in one net cash flow per currency.

Net Bulk

Select if positive and negative cash flows for each currency are netted separately, resulting in one positive cash flow amount and one negative cash flow amount per currency.

Contractual Netting

If you select either Net or Net Bulk, select this check box to indicate that there is a netting contract in place with this counterparty.

Payment Instructions


Select a settlement instruction.


Select to indicate which instructions are the default instructions in Deal Management.

Settle Thru Internal Account

Select to enable settlements to go through an internal account as opposed to an account in another bank. This check box is available only if the bank type is Internal.

Settle Thru Bank and Settle Thru Account

Select the appropriate bank code and account code.

Payment Method

Payment methods available to you are determined by the selected Settle Thru Bank and Settle Thru Account.

See Defining Payment Methods.

See Setting Up Payment Processing.

Options include:

Automated Clearing House

Direct Debit

Draft - Customer EFT

Draft - Customer Initiated

Draft - Vendor Initiated

Electronic Funds Transfer



Letter of Credit

Manual Check

System Check

Wire Transfer

Edit Settlement Instructions

Click to access the Beneficiary Bank page and edit settlement instructions.