19 Common HCM Configuration: Set Up Banks, Branches, and Accounts

This chapter contains the following:

Entering Bank Information for Personal Payment Methods: Critical Choices

Payroll Setup Tasks for Banks and Cash Management: Explained

Entering Bank Information for Personal Payment Methods: Critical Choices

Bank, branch, and bank account information is shared across multiple applications. For example, if you add an employee's bank details for expense payment, the same bank details are available for managing electronic funds transfer payment details for that employee. Who enters bank information depends on how security is configured at your site.

The configuration choices are:

Enter bank information centrally
Enter bank information on the Manage Personal Payment Methods page

Entering Bank Information Centrally

By default, only cash managers can enter banks and branches. They use the Set Up Bank, Branches, and Accounts task list in the Setup and Maintenance work area.

A web service is also available to migrate personal payment method information, including employee bank account details, from external sources.

Entering Bank Information on the Manage Personal Payment Methods Page

By default, on the Manage Personal Payment Methods page, employees can enter their own bank account details for existing banks and branches, but they cannot create new banks and branches. Similarly payroll managers, payroll administrators, and payroll coordinators can enter account details for the employees they handle, but they cannot create new banks and branches. If you want to enable the create option for any of these roles, you must add the Bank and Branch Management duty role to the relevant role.

It is not possible to edit bank and branch details on the Manage Personal Payment Methods page. You must use the Set Up Bank, Branches, and Accounts task list to edit existing banks and branches.

Important

If you enable employees or other roles to create banks and branches, provide guidance to use unique names and follow appropriate naming conventions. If enabled, employees can create bank and branches using the Manage Personal Payment Methods task from their portrait.

Payroll Setup Tasks for Banks and Cash Management: Explained

Oracle Fusion Global Payroll integrates with Oracle Fusion Cash Management, which facilitates the setup of banks, branches, and bank accounts, and the reconciliation of bank statements with payment transactions.

A manager with the appropriate duty role, usually a Cash Management cash manager, creates the following information in the Setup and Maintenance work area.

Banks, bank branches, and bank accounts for the payment sources used to issue payments
Transaction codes used in bank statements that you map to transaction codes that you set up for payment methods
Reconciliation Differences account and reconciliation rules, to support reconciliation of your payments with bank statements

Set Up Banks

Before you can set up banks, you must complete the tasks for Global Payroll and Financials to set up a chart of accounts and ledger. This information is then used to set up banks. For example, when creating a bank for a payment source, you select a legal entity assigned to a ledger for the associated legislative data group.

Complete the following tasks to create banks for your payment sources.

Task	Action
Manage Banks	Create the bank information required for the payment sources used in your payroll transactions.
Manage Bank Branches	Create the bank branch information required for the payment sources used in your payroll transactions.
Manage Bank Accounts	Create the bank account information required for the payment sources used in your payroll transactions.

Set Up Payroll Transactions Codes

If you cost your payments, complete the following tasks to set up and map transaction codes in Cash Management for the organization payment methods.

Task	Action
Manage Bank Statement Transaction Codes	Create transaction codes for the transaction types that support your organization payment methods. When creating the codes, refer to the transaction and statement codes that your enterprise currently uses.
Manage Cash Transaction Type Mapping	Map transaction types to payment types used for the organization payment methods that support costing of payments. Identify the organization payment methods for payroll accounts, such as payroll liability, cash, and cash clearing accounts.

Set Up Accounts and Rules for Reconciliation

Payroll processes transfer your payment entries to Cash Management for manual or automatic reconciliation with bank statements, and cost the unreconciled and reconciled payments to the appropriate account, such as the cash clearing and cash accounts. A reconciliation difference account records discrepancies, such as over or under payments.

If you automatically reconcile payment transactions, complete the following tasks to set up tolerance and reconciliation rules in Cash Management. For manual reconciliation, you make decisions during the reconciliation process when matching bank statement lines and system transactions.

Task	Action
Manage Bank Statement Reconciliation Tolerance Rules	Create tolerance rules based on date, amount, or percentage that prevent or warn you when reconciliation exceeds a defined tolerance.
Manage Bank Statement Reconciliation Matching Rules	Define bank statement automatic reconciliation matching rules.
Manage Bank Statement Reconciliation Rule Sets	Assign a group of matching rules and tolerance rules to a bank account for reconciling bank statement lines with transactions.
Manage Bank Accounts	Specify the Reconciliation Differences account you set up in Oracle Fusion General Ledger to use for storing discrepancies that exceed the tolerance rules in the payment amounts reported in the bank statements.