Defining Bank Replacement Rules

Processing Order When a Bank Replacement Rule Includes Multiple Bank Replacement Options

You can define a bank replacement rule that combines more than one of these five bank replacement option types, subject to the following conditions.

1. If you select Replace All Payments to replace the original bank accounts for all payments in a pay cycle with one alternate bank account, you cannot select any of the other four bank replacement option types.

   This replacement occurs during the Payment Selection subprocess.

2. The other four—options 2 through 5 in the preceding list—are processed in order (2 through 5).

   This processing occurs during the Payment Creation subprocess.

Here's an example of processing if your bank replacement rule has definitions for options 2 through 5. Assume that you have the following bank replacement rule (the example is an unlikely one in actual practice, but it is designed to demonstrate the point simply):

Now assume that you have two vouchers with the following payment amount and bank account information:

1. 7,000.00 EUR, Bank account A.

2. 11,000.00 SEK, Bank account A.

The first voucher would be paid out of bank account E, because the replacement processing would happen in the following order:

1. Replace by bank account: bank account A replaced by bank account B.

2. Replace by currency: no action.

3. Replace by individual payment limit: 7,000.00 EUR is over the individual payment limit for bank account B, so bank account B is replaced by bank account E.

The second voucher would be paid out of bank account D, because the replacement processing would happen in the following order:

1. Replace by bank account: bank account A replaced by bank account B.

2. Replace by currency: because the payment is in SEK, bank account B is replaced by bank account C.

3. Replace by individual payment limit: 10,000.00 SEK is over the individual payment limit for bank account C, so bank account C is replaced by bank account D.

Now, if voucher 2 were one of ten vouchers in SEK in the pay cycle that together totalled over 100,000 SEK, and if it were processed by the pay cycle after the 100,000.00 SEK threshold was reached, then it would be paid out of bank account F.

Payment Method Replacement Considerations

When you replace the bank for all payments, replace a bank with another bank, or replace the bank for payments with a particular currency, you can specify the payment method for the payments drawn on the replacement bank account. If the original and replacement payment methods are one of the following, then Pay Cycle applies the replacement payment method to the payments:

• System check.

• Electronic funds transfer (EFT).

• Giro electronic funds transfer (Giro EFT).

• Automated Clearing House (ACH).

• Wire.

Scheduled payments with a payment method other than these four will not be assigned a replacement payment method, but will keep the original payment method, regardless of the replacement payment method indicated in the bank replacement rule. For example, if the payment method for a voucher is Draft-Customer EFT and the bank rule specifies a replacement payment method of EFT, the pay cycle still generates a Draft-Customer EFT payment for that voucher, even if the bank account is slated for replacement. If the replacement bank does not support the original payment method in these cases, then the payment generates a bank replacement exception.

If the replacement payment method is EFT, ACH, or Giro EFT and the original payment method on a voucher is System Check, then the Payment Selection subprocess validates that a remit-to bank account exists and routing information is set up for the remit to supplier for the voucher. If not, the payment generates a bank replacement exception.

Currency Considerations

If the default currency for an original bank account is different from that of the replacement bank account, then the Pay Cycle process converts the original currency into the replacement bank account's default currency when it is comparing payment amounts to bank account maximum amounts. The exchange rate is based on the payment date.

If a replacement bank does not have a valid payment currency, the Pay Cycle process drops the payment and generates a bank replacement exception.

Bank Replacement Exceptions

Any voucher payments that fail bank replacement processing during pay cycle processing are logged on the Bank Replacement Exceptions page. These vouchers return to their original state, with their original bank account, payment methods, and payment currency intact, waiting to be run in the next pay cycle.

When processing pay cycles through the PeopleSoft Financial Gateway functionality, the system verifies that a payment's layout code is valid for the replacement bank. If the layout code is not valid, the system logs a bank replacement exception. You can resolve or avoid exceptions in the following way:

• To resolve these exception types, add the appropriate layout code to the replacement bank external account definition (on the External Accounts – Payment Methods page). Then rerun the Pay Cycle process.

• To avoid these exception types, confirm that the origin bank and the replacement bank are defined with the appropriate layouts before processing pay cycles.

Replace All Payments

Replace Bank with Another Bank

Select to have all payments from a specified bank account (and optionally, payment method) paid from a replacement bank account (and optionally, payment method).

In the Replace row, enter the identifying information for the original bank account that you want to replace. Do the same in the With row for the replacement bank account.

The bank SetID, bank code, and bank account are required, but the payment method is optional. If you opt to replace the payment method, the same conditions apply as when you specify a replacement payment method for the Replace All Payments option.

Replace by Currency

Select to have all payments in a specified currency paid from a replacement bank account.

Enter the currency and the identifying information for the replacement bank account. Payment method is optional, and if you opt to replace the payment method, the same conditions apply as when you specify a replacement payment method for the Replace All Payments option.

Replace by Individual Payment Limit

Select to assign an alternate bank account to any individual payment that exceeds a monetary amount limit that is predefined for the original bank account.

Enter the identifying information for the original bank account in the Replace row, and enter the identifying information for the replacement bank account in the With row.

Replace by Bank Maximum Limit

Select to assign an alternate bank account to any payments that remain after the monetary total of accumulated payments from a single bank account exceeds a defined monetary limit for that bank account.

Enter the identifying information for the original bank account in the Replace row, and enter the identifying information for the replacement bank accounts in the With grid. You can enter multiple replacement bank accounts for each original bank account that you specify. The Pay Cycle process assigns payments to each replacement bank account in the order that you add them to the grid, moving on to the next replacement bank account when an earlier bank account in the order has reached its maximum payment limit.

When you save or refresh the page, the Priority field is populated with a number indicating the processing order. The first row has priority 1, the second has priority 2, and so forth.