Defining Settlement Instructions

This topic discusses how to define beneficiary bank accounts and EFT options for settlements.

Page Name

Definition Name

Usage

Beneficiary Bank Page

STL_INSTRUCTION

Create settlement instructions for use by Treasury Management. Associate the instructions with appropriate accounts or counterparties.

Beneficiary Address Page

STL_ADDRESS

Capture bank address information on your settlement instructions.

EFT Options Page

TR_EFT_OPT_SEC

Define specifics for EFT transmissions when using these settlement instructions.

Identification Information Page

TR_OTHID_SP

Provide other identification for Name1, Bank, and/or Bank Account values, respectively. Available only for a Partner Instructions/Pay Into settlement type.

See the Beneficiary Bank Page for more information.

Use the Beneficiary Bank page (STL_INSTRUCTION) to create settlement instructions for use by Treasury Management.

Associate the instructions with appropriate accounts or counterparties.

Navigation:

Banking > Bank Accounts > Define Settlement Instructions > Beneficiary Bank

This example illustrates the fields and controls on the Beneficiary Bank page. You can find definitions for the fields and controls later on this page.

 Beneficiary Bank Page

Field or Control

Description

Our Instructions/Receive Into

Select if these instructions dictate receipt of funds from a counterparty. Generally, information entered here matches external bank account information already defined in the PeopleSoft system (on the External Accounts page).

Partner Instructions/Pay Into

Select if these instructions dictate payment of funds to a counterparty. Generally, information entered here enables electronic payment to an account not defined in the PeopleSoft system.

Identification icon

Click the Identification icon next to the Name1, Bank, or Bank Account fields to access the Identification Information page (TR_OTHID_SP), where you can where you can provide other identification for Name1, Bank, and/or Bank Account values, respectively.

This icon appears only on Beneficiary Bank pages for a Partner Instructions/Pay Into settlement type.

Account #

Enter bank account number.

If you set up bank account encryption, account numbers are masked when you save the page.

For more information about bank account number encryption and the National Automated Clearing House Association (NACHA) data security requirements, see Understanding Bank Account Encryption and Setting Up Bank Account Encryption.

Unmask

Select to unmask the bank account number and IBAN.

Account Information

Complete the fields to identify the bank that receives funds when using these settlement instructions:

  • If the Partner Instructions/Pay Into radio button is selected, the bank account that you describe here is the counterparty's bank account into which you're transferring funds.

    Because bank accounts are defined by currency, you must insert additional rows for each currency used for fund settlement.

  • If the Our Instructions/Receive Into radio button is selected, the bank account that you describe here is your bank account for receiving funds in the referenced currency.

Field or Control

Description

Currency

Select the currency. Oracle recommends that you set up settlement instructions for each currency defined for the bank account.

Name 1 and Name 2

Enter the beneficiary names, if required.

Bank ID Qualifier

Select an ID to enable the bank information to be edited online. For certain bank ID qualifiers, you must specify a check digit.

IBAN Digit

Enter the check digit and click View IBAN. If the system validates the check digit, the IBAN (international bank account number) for this account appears next to the View IBAN button, and the system stores it on a record.

This field and the View IBAN button appear only if the IBAN Enterable field is not selected on the IBAN Formats page. For the specified settlement instructions, define the account's IBAN for transmittal with other settlement information.

IBAN

Enter the IBAN (international bank account number). This field appears only if the IBAN Enterable field is selected on the IBAN Formats page.

DFI Qualifier and DFI ID

Select the DFI qualifier (depository financial institution qualifier) and enter the associated DFI ID to identify the bank using its DFI ID. If you use intermediary routings, this bank represents the final bank into which funds are transferred. The DFI qualifier indicates the format—the number of characters and numerics—that is used in the bank's DFI ID. Each type has a specific number of digits that you can enter:

Transit Number: Enter exactly nine numerics, plus check digit calculation.

Swift ID: Enter 8 or 11 characters; positions 5 and 6 must be a valid two-character country code.

CHIPS ID: Enter three or four numerics for a CHIPS ID (CHIPS Participant ID).

CHIPS UID (CHIPS universal identification number): Enter six numerics for a CHIPS UID.

Canadian Bank Branch/Institute: No validation.

Mutually Defined: No validation.

Mandate Details

The Mandate Details options only apply if a SEPA direct debit is being performed for the payment.

See Entering and Managing Direct Debit Mandates.

Routings

Use the Routings page (TR_INTR_TBL_SEC) to set up the payment routing information for this beneficiary bank.

Navigation:

Click the Routings link on the Beneficiary Bank page.

See Enter Transfer Templates - Bank Routings Page.

Remittance Advice Attributes

Use the Remittance Advice Attributes page (PMT_ADVISE_ATTR) to identify remittance advice information related to these settlement instructions.

Navigation:

Click the Remittance Advice Attributes link on the Beneficiary Bank page.

See Using Remittance Advice in Financial Gateway.

Use the Beneficiary Address page (STL_ADDRESS) to capture bank address information on your settlement instructions.

Navigation:

Banking > Bank Accounts > Define Settlement Instructions > Beneficiary Address

Use the EFT Options page (TR_EFT_OPT_SEC) to define specifics for EFT transmissions when using these settlement instructions.

Navigation:

Click the EFT Options link on the Beneficiary Bank page.

This example illustrates the fields and controls on the EFT Options page. You can find definitions for the fields and controls later on this page.

 EFT Options page

Field or Control

Description

Payment Format

Select a payment format for this settlement instruction's EFT option. You can create your own payment formats or modify the delivered formats, such as Check Std, Pay & Dep, and Wire.

Transaction Handling

Select an option that determines the parts of the payment that are included in the EFT file when you send it to the bank. Options are:

(Blank): No information is sent.

Pay+Advice: Both the actual payment and the advice are transmitted.

Prenote: Test run to verify that all EFT information is correct before sending out an actual payment and advice.

Pymnt Only: Only the payment is sent with the EFT file.

Domestic Costs and Correspondent's Costs

Depending on the country in which an EFT takes place, there may be costs involved in executing such transactions, especially if there is a transfer between two different countries. The Domestic Costs field designates who pays for the bank costs of the EFT.

If there are any other third parties to the transfer, the correspondent's costs are also assessed.

When there are domestic costs or correspondent's costs tied to an EFT transaction, select the source from which these costs are paid. Options are:

  • (Blank): No costs are incurred.

  • Payee Acct: The payee's account is assessed for the charges.

  • Payr/Payee: The payee and the payer share costs equally. This option is available only for domestic costs.

  • Pyr D Acct: Costs are assessed to the payer's domestic account.

  • Pyr F Acct: Costs are assessed to the payer's foreign account.

Bank Check Drawn On

Select where a check comes from, if it is necessary to generate a check for this EFT transaction. Options are: (None), Payee Bank, or Payer Bank.

Check Forwarding

Select where the check should go. Options are: (None), Payee Bank, Payee, Payer, or Pyr Bank.

Crossed Check

Select if the EFT involves a check that cannot be signed over to a third party.

Payment Instruction 1, Payment Instruction 2, Payment Instruction 3, and Payment Instruction 4

Select additional payment instructions for the employee's EFTs. These fields contain standard EFT instruction codes that are delivered with your system.

Payment Instruction Ref 1 and Payment Instruction Ref 2

Enter any additional comments regarding EFT transactions.