Understanding Banking
This topic discusses:
Banking in the United States.
Banking setup.
The CI_BANK_EC component interface.
Banking preparation process.
In the United States, employees can choose to be paid by check, direct deposit, or a combination of the two. If an employee chooses to be paid by direct deposit, the funds are transferred electronically to the employee's bank account. A prenote may be required before the first electronic transfer. You can create a prenote and generate a check while waiting for the prenote to be processed.
You can use the banking process in PeopleSoft Global Payroll for United States to complete paycheck processing. During source bank setup, you define and assign payment IDs to any type of payment. Because organizations offer their employees several different payment methods, such as checks and bank transfers, assigning unique payment IDs to payment types is important. During bank processing, the system determines the type of payment and the appropriate payment number to assign to each paycheck.
In the United States, direct deposits are distributed to banks through the National Automated Clearing House Association (NACHA). For NACHA to electronically transfer money, companies must send direct deposit files, using the formats required by NACHA. PeopleSoft Global Payroll for United States supports the PPD file format used for payee net pay distribution.
Garnishments can be submitted electronically as part of payment processing. PeopleSoft Global Payroll for United States supports the CTX file format used for garnishments.
With PeopleSoft Global Payroll for United States, you can generate the Net Payment report, the Net Distribution Exception report, and the transmittal report for child support garnishments.
For PeopleSoft Global Payroll country extensions, banking setup starts in the core application and continues in PeopleSoft Global Payroll for United States. Oracle strongly recommends that before reading this topic, you read the banking feature in the PeopleSoft Global Payroll core documentation.
These steps summarize the banking setup in PeopleSoft Global Payroll for United States:
Define bank information, such as bank name and ID.
Note: In Global Payroll, bank information must be defined for all banks, including those that are to be used as source banks and those that are used by payees. Because you may need to set up a large volume of bank information, you can simplify the process by importing bank information from a Microsoft Excel spreadsheet into the bank setup tables with the use of the CI_BANK_EC component interface that PeopleSoft Global Payroll provides.
Define and assign district information for banks in the United States.
Define funding such as the electronic funds transfer (EFT) formats and source bank account information.
Define additional source bank information for the United States.
Define a deposit schedule.
Define recipients.
A recipient can be general (for example, a government agency) or individual.
Define a payee's bank account information and net pay distribution details.
On the Maintain Bank Accounts page, you also define prenote information for U.S. payees.
Note: Bank information setup and general source bank setup are discussed in the PeopleSoft HCM Application Fundamentals product documentation. All other aspects of banking setup, such as deposit schedules, recipients, and payee bank account information, are discussed in the Global Payroll core documentation, with the exception of bank district setup, additional U.S. source bank setup, and prenote information, which are discussed in this topic.
See Understanding Bank and Bank Branch Setup.
Bank information can change frequently due to mergers and changes in bank locations or bank IDs (also known as routing numbers).
Because a large volume of bank information may need to be set up, you can simplify the process by importing bank information from a Microsoft Excel spreadsheet into the bank setup tables using the banking component interface that PeopleSoft Global Payroll provides.
These steps summarize the setup and use of the CI_BANK_EC component interface:
You download bank information from a website or service that provides bank information to a Microsoft Excel spreadsheet.
You import the bank information from the Microsoft Excel spreadsheet to the CI_BANK_EC component interface using the Excel to Component Interface utility.
The CI_BANK_EC component interface loads bank information into the BANK_EC table and BANK_BRANCH_TBL in HCM.
Note: You are responsible for determining which rows to update and which rows to add to the HCM database when using the Excel to Component Interface utility.
See PeopleTools: Component Interfaces
Once you've set up banking and assigned recipients to deductions, you can run the PeopleSoft Global Payroll for United States banking preparation process.
The PeopleSoft Global Payroll for United States banking preparation process includes:
The core banking preparation process.
U.S.-specific payment processes.
Combine payments process.
Payment ID and number assignment process.