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 has a trading relationship with your organization.
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.
PeopleSoft bank functionality is available to PeopleSoft Cash Management, Deal Management, Risk Management, Expenses, Payables, Receivables, General Ledger, and Global Payroll. 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, suppliers, and counterparties agree to set up payment, receipt, and settlement procedures.
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.