Bank Transfer Charge Process

PeopleSoft Payables provides bank transfer charge processing for businesses in which suppliers are often responsible for the bank transfer charge that is deducted from the payment. The system automatically calculates and creates electric funds transfer (EFT) payments and creates reports of bank transfer charge transactions.

The bank transfer charge process calculates the actual payment amount by deducting the bank transfer charge from the payment amount in cases when the supplier pays the charge. This operation is processed only for EFT payments and takes place within the pay cycle. The system generates the EFT file using the adjusted payment amount. The applicable amount of the bank transfer charge is defined in the bank transfer charge code and identified by the combination of bank and file layout. Alternatively, the amount of the charge can be a unique specified amount at the supplier location. This process is enabled at the bank and supplier location levels.

Bank Transfer Charge Autodeduction

If you enable the bank transfer charge option, the system creates a transaction for the charge during the pay cycle, and generates the accounting entry for the charge at the payment posting.

Consider the following during autodeduction:

• Calculation basis.

• Separate payments, pay groups, and mixing with other business units.

• Canceling payments.

• Non-EFT payments.

Bank Transfer Charge Calculation Basis

When you enable the bank transfer charge option using the Bank Transfer Charge table, the system calculates the amount of the charge based on the payment amount.

Separate Payments, Pay Groups, and Mixing with Other Business Units

The bank transfer charge is calculated based on the payment. If one voucher has the Separate Payment check box selected on the Voucher component (VCHR_EXPRESS), the bank transfer charge of this payment is calculated separately from other payments.

The process is the same for calculations based on the pay group. When the payments are grouped using group IDs, the charge is calculated for each group ID.

In the same manner, if one business unit has the Do Not Mix with other Units option selected on the Payables Definition component (BUS_UNIT_TBL_AP), and if payment for this business unit is made separately, the bank transfer charge is also calculated separately based on the payment amount of the business unit.

On the other hand, if one business unit has the Do Not Mix with other Units option disabled (which means that the transactions of this business unit can be paid with the transactions of other business units), the bank transfer charge is calculated based on the payment amount that includes the transactions of other business units.

Canceling Payments

The accounting entry for a bank transfer charge suspense is created during payment posting. At this point, the gross amount is divided into two parts: the actual payment and the bank transfer charge. If this payment is canceled, reverse accounting will generate for all entries, including the bank transfer charge.

Non-EFT Payments

The bank transfer charge is processed only for EFT payments. (EFT does not include Draft EFT and Giro EFT.)

Important:

If there are any setup steps missing, the bank charge is not deducted. For instance, if supplier location is set up to use the Bank Transfer Charge table, but the table was not found during the payment process, the pay cycle completes without errors and the bank transfer charge is not deducted from the payment amount. In this case, a message is logged to the PeopleSoft Process Monitor.