Understanding Banking

Before you run banking recipient processes, you must define and set up:

  • Source (company) bank (China Construction Bank, Shanghai branch (CCBS)).

  • Source bank table data.

  • Payees' banks (beneficiary bank).

  • Payee's bank account table.

  • Net distribution table specifying the distribution details for each payee.

This topic discusses:

  • Banking in China.

  • Banking setup.

  • Banking preparation process.

In China, salary payments are made by direct deposit, in cash, or by check. In cases in which direct deposit is selected, the company chooses any commercial bank as the payment bank. Global Payroll for China takes advantage of Global Payroll core application functionality to process direct deposits.

In Global Payroll, banking setup starts in the core application and continues in Global Payroll for China. Oracle strongly recommends that before reading this topic, you read about the banking feature in the Global Payroll core documentation.

These steps summarize the banking setup in Global Payroll for China:

  1. Define bank information, such as bank name and ID.

    Though some countries have their own validation rule for branch ID, China does not have a standard for bank branch code at the country level. Thus, Global Payroll for China uses the core PeopleSoft Global Payroll banks and branches feature without any enhancement.

    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.

  2. Define source bank account information.

  3. Define a deposit schedule.

  4. Define a payee's bank account information and net pay distribution details.

China does not have its own account-numbering standard and validation rule for bank account numbers at the country level. Thus, Global Payroll for China uses the core PeopleSoft Global Payroll source bank accounts feature without any enhancement. In China, companies generally allow their employees to have only one bank account for salary payments and, therefore, only one net distribution per payee.

Note: Even if only one net pay distribution exists per payee, you have to define the distribution for each payee.

Accepted Chinese payment methods are:

  • Cash

  • Direct Deposit (bank transfer)

  • Check

Note: Bank information setup and general source bank setup are discussed in the PeopleSoft HCM Applications Fundamentals documentation. All other aspects of banking setup, such as deposit schedules and payee bank account information, are discussed in the Global Payroll core documentation.

After you've set up banking and assigned recipients to deductions, you can run the Global Payroll for China banking preparation process.

The Global Payroll for China banking preparation process includes:

  • The core banking preparation process.

  • China-specific payment processes.

  • Combine payments process.

  • Payment ID and number assignment process.