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.