11Cash Management and Banking Configuration

This chapter contains the following:

Banks, branches, and accounts fit together on the premise of the Bank Account model.

The model enables you to define and keep track of all bank accounts in one place and explicitly grant account access to:

  • multiple business units

  • functions

  • users

This eliminates the redundant duplicate bank account setup in different business units when these business units share the same bank account.

Banks

Creating a bank is the first step in the bank account creation. You can:

  • Search for existing banks to view and update

  • Create a new bank from an existing party

Consider the following:

  • The option to create from an existing party is implicitly implemented by the matching option.

  • The option is available only after the existing party has been found with the same bank.

  • If you select the matching option, the page repopulates the information from the matched party.

Branches

Once you have created your bank, the next step is creating a branch or branches associated to the bank. The matching option is also available when creating branches. To create a new branch without using the matching option, manually enter the required information. You can also define other branch- related attributes in the same page.

If you don't use the matching option when an existing party is found, a branch with the same party name is created.

Accounts

The four areas associated with defining an account are:

  • General information

  • Control of the account

  • Security and access to the account

  • Business unit assignment

Once the bank and branch are created, proceed to the bank account setup by doing the following:

  • Select the bank branch you want to associate to your bank account.

  • Assign the owner of the bank account.

    Note: To create a bank account for Payables or Receivables, add the Business Unit Access first for the business units to use the bank account.

Consider the following:

  • The Oracle Fusion Account Payables or Receivables accounts are identified by the business unit.

  • The Oracle Fusion Payroll accounts are identified by the legal entity.

  • The program, Inactivates Banks and Bank Branches enables you to inactivate all banks and bank branches that have no active internal and external bank accounts.

Banks, branches and accounts fit together on the premise of the Bank Account model. The Bank Account model enables you to define and keep track of all bank accounts in one place.

The Bank Account Model can explicitly grant account access to multiple business units, functions, and users. Consider the following when you set up bank accounts:

  • Assign a unique general ledger cash account to each account, and use it to record all cash transactions for the account. This facilitates book to bank reconciliation.

  • Grant bank account security. Bank account security consists of bank account use security, bank account access security, and user and role security.

Account Use

Account Use refers to accounts created for:

  • Oracle Fusion Payables

  • Oracle Fusion Receivables

  • Oracle Fusion Payroll

Select the appropriate use or uses when creating an account in one or more of these applications.

Account Access

Payables and Receivables account access is secured by business unit. Before the bank account is ready for use by Payables or Receivables, you must:

  1. Select the appropriate use for the application.

  2. Grant access to one or more business units.

Note: You can only assign access to the business units that use the same ledger as the bank accounts owning the legal entity,

User and Role Security

You can further secure the bank account so that it can only be used by certain users and roles. The default value for secure bank account by users and roles is No. For Payables and Receivables, you must have the proper business unit assigned to access a bank account even if the secure bank account by users and roles is No. If the secure bank account by users and roles is set to Yes, you must be named or carry a role assigned to the bank account to use it.

  • You must assign the security duty role Cash Management Administration to the Cash Manager job role to provide access for setting up banks, branches, and accounts. You must have the assigned Manage Bank Account Security privilege to modify the User and Role Security.

  • If you want to restrict the access to the Security tab, you must create a customized role and remove the privilege Manage Bank Account Security. For example, you would copy the Cash Management Administration duty role, rename it, and remove the privilege.

GL Cash Account Segments

Consider selecting the option to enable multiple cash account combinations for reconciliation if you want to reconcile journal lines of multiple cash account combinations matching the same natural account and other specified segment values.

For example, if you set up 01-000-1110-0000-000 as your cash account, and select Account and Sub-Account as GL Cash Account Segments, you're able to manually or automatically reconcile journal lines entered on different account code combinations matching the same natural account '1110' and sub-account '0000'.

Cash Management Profile Options

Profile options in Oracle Fusion Cash Management provide ways to improve and promote efficiency in your business practices. How you configure these profile options can affect the interaction with other applications. Enabling these profile options can streamline your processes between those applications.

The following table lists and describes the Cash Management profile options:

Profile Option Profile Display Name Applies To Default Setting

CE_DISABLE_BANK_VAL

Disable Country Specific Bank Validations

Internal Bank Accounts

External Bank Accounts

No

CE_GL_RECON_ENABLED

Journal Reconciliation Enabled

Bank Reconciliation

Yes

CE_MASK_INTERNAL_BANK_ACCT_NUM

Mask Internal Bank Account Numbers

Internal Bank Accounts

No Masking

CE_USE_EXISTING_BANK_BRANCH

Use Existing Banks and Branches

Employee Bank Accounts

Payee Bank Accounts

No

Note: Internal bank accounts are set up in Oracle Fusion Cash Management. Assign the disbursement bank account to Oracle Fusion Account Payables and the remit-to bank accounts to Oracle Fusion Account Receivables.
Note: External bank accounts are set up and used for suppliers, customers, ad hoc payees, and employees.

Enabling Profile Options: Points to Consider

The following information provides details on configuring profile options, how they influence other applications, and how they can streamline your business practices.

  1. Disable Country Specific Validations

    This profile option manages the country-specific validations for the bank code, branch number, account number, check digit, and IBAN. You can set this profile option at the site or user level. The profile option default is set to No at the site level. If the profile option is set to Yes, this eliminates the country-specific validation process for the bank code, branch number, account number, check digit, and IBAN. This profile option affects internal and external bank accounts. It doesn't affect the checks for unique banks, branches, accounts, and the mandatory requirement of the bank account number.

  2. Journal Reconciliation Enabled

    This profile option enables the manual and automatic reconciliation of bank statement lines directly from GL Journal manual entries. You can set this profile option at the site level. The profile option default is set to Yes. If the profile option is set to No, it disables the journal source transaction on the Manage Reconciliation Matching Rules, the Manual Reconciliation page, and the reconciliation processes. Note: This profile can only be set to No if there are zero Journal Entries that have been reconciled.

  3. Mask Internal Account Numbers

    This profile option allows the masking of the internal bank account number. You can set this profile option at the site or user level. The profile option default is set to No Masking at the site level. You can select Display first four or Display last four digits. For example, an internal bank account number of XXXX8012 displays the last four digits and masks all the rest. This profile option affects only the internal bank accounts.

  4. Use Existing Banks and Branches

    Enable this profile option to pre-load the bank branch data information when creating an employee or ad hoc payee bank account. You can choose to pre-load the bank branch data and have your employees select the pre-loaded data when entering their bank accounts. Alternatively, you can have your employees enter all the bank, branch, and account information related to their account. Customers can set their preference to pre-load the bank branch data through this profile. You can set this profile option at the site or user level. By default, the profile option is set to No and that means pre-loaded information can't be used. In this case, the Bank, Bank Code, Bank Branch, Branch Number, and BIC Code fields will be displayed as free text field, and a new bank and bank branch will be created for the bank account.

    If the bank name isn't entered, the default name CE_EMP_UNSPECIFIED_BANK will be used. If the branch name isn't entered, the default name CE_EMP_UNSPECIFIED_BRANCH will be used.

    If you set the profile option to Yes, the existing bank and branch information is available and displayed in the list of values when creating the employee or ad hoc payee bank account.

Oracle Fusion Cash Management supports parse rule sets to transform data during the bank statement import process. Parse rules are used to move data from one field to another. The parse rule set is associated to a bank account in the bank account setup. The parse rule set is most commonly used to parse data from the statement line addenda field into more specific statement line fields. Each parse rule within a parse rule set consists of the following fields:

  • Sequence: Determines the order in which to process the rules.

  • Transaction Code: The code used to determine the statement line type.

  • Source Field: The interface table field that contains the data to be parsed.

  • Target Field: The statement line field that the data is to be parsed to.

  • Rule: Contains the syntax for determining the data within the source field to be parsed.

  • Overwrite: Used to control whether to overwrite existing data in a target field or skip parsing the data.

The parse rule syntax is described in the following:

[LITERAL](<[MATCHING TOKEN],[START-END]>)[LITERAL]

Where

LITERAL represents a string or character value represented by an identifier that should match the source data exactly.

MATCHING TOKEN represents a token (or set of tokens) which describes the data to extract. The following table lists the valid tokens with their descriptions:

Token Description

N

Extract a valid number

.

Decimal position

X

Extract an alphanumeric

~

Extract everything in the source field from the parse position to either the end of the data or up to the next literal.

START

A position to begin extracting data, offset by the parse position. It must be a valid numeric.

END

A position to stop extracting data. END can be either a valid numeric or the ~ token.

The following table lists some examples:

Description Source Data Rule Target Data

Extract numeric rate data from a source field

EST/TRX RTE 3.76 USD/LIBOR CPTY: PRU

RTE (N.NN)

3.76

Extract value date from a source field

Dt.01/01/2011?Receipt

Dt.(1-10)?Receipt

01/01/2011

Extract check number from a source field

Account Number 1005

Account Number.(X~)

1005

Extract currency from a source field

$^EUR:Dt

$^(1-3):Dt.

EUR

Extract the counterparty of an unknown string length from the same source field

EST/TRX RTE 3.76 USD/LIBOR CPTY:PRU

CPTY: (X~)

PRU

Extract the currency from the same source field using positional matching

PRU EST/TRX RTE 3.76 USD/LIBOR CPTY: PRU

RTE(7-9)

USD

Extract Contract ID from Additional Entry Information

TXT:AR:Receipt Num:CEF-1:For:2010$^USD:Dt.01/01/2011?Receipt Method:CE-Foreign:Receipt Type:Standard:BU:Vision Operations:Customer:World of Business:Account No.1001

Account Number(NNNN)

1001

Extract Transaction ID from Customer Reference

CustRef # A.23@orlc.com

CustRef (X~).com

# A.23@orlc

The transaction type mapping enables you to associate a cash transaction type to an application transaction.

The following must be created to associate and mapped to cash transaction types:

  • Oracle Fusion Account Payables payment methods

  • Oracle Fusion Account Receivables payment methods

  • Oracle Fusion Payroll payment types

Assigning cash transaction types to application transactions result in a more efficient bank statement reconciliation process.

Bank statement lines are also associated with cash transaction types and matching rules can be created using this common attribute.

Tolerance rules enables you to specify date and amount tolerances that prevent or warn you when reconciliation would be a breach of a defined tolerance.

  • Amount tolerances are most often used when reconciling foreign currency transactions where there may be differences due to rounding or fluctuations in the conversion rate. They can also be used if a bank includes a processing fee in the bank statement line amount.

  • Date tolerances are primarily used for checks that may be issued on one day and not clear the bank until days or weeks later.

Consider the following when defining your tolerance rules:

  • Applying tolerances you can automate the reconciliation and accounting for these types of transactions.

  • If no date or amount tolerance is defined within a rule, it requires an exact match.

  • For manual reconciliation, a tolerance rule can optionally be assigned to a bank account.

  • For automatic reconciliation, a tolerance rule can be associated with a matching rule in the Rule Set setup and can be applied if the matching rule matches on date and amount or both. However, when you assign a tolerance rule that includes amount tolerances to a matching rule that isn't a one to one match type, the amount tolerance is ignored.

Date Tolerance

Reconciliation date tolerances are defined as day ranges. The date tolerances are to validate that the source transaction date or dates are within a certain number of days before and after the bank statement line date or dates.

In manual reconciliation, if a date tolerance is specified in the tolerance rule assigned to the bank account it applies to all matching scenarios. In the event of a date tolerance breach, a warning message is displayed, but the user is allowed to reconcile the statement line or lines and the transaction or transactions. If no date tolerance is assigned or specified it's required to be an exact date match and a warning message is displayed.

In automatic reconciliation, a tolerance rule that includes date tolerances can be associated with a matching rule. If the matching rule matches on the date, then the date tolerance is applied. In this scenario a date tolerance breach prevents reconciliation.

Amount Tolerance

Reconciliation amount tolerances can only be used in one to one matching scenarios for both manual and automatic reconciliation. No reconciliation amount tolerances are allowed in one to many, many to one, or many to many matching scenarios. In these scenarios the amount of the bank statement line or lines must be equal to the amount of the transaction or transactions. Reconciliation amount tolerances can be defined as percentage or amount ranges or both. If both percentages and amounts are applied, the application uses the most conservative tolerance depending upon the statement line amount.

For example, if the amount tolerance equals plus or minus $5, the percentage tolerance equals plus or minus 1%, and the statement line amount is $100, the application first calculates the percentage amount (1% of $100 dollars = $1). It then compares this to the $5 amount and uses the smaller amount. In this case it's $1 dollar, so to reconcile a transaction to this line it must be between $99 and $101.

In automatic reconciliation, a tolerance rule that includes percentage, amount, or both types of tolerance ranges can be associated with a matching rule. But the tolerance can only be applied if the matching rule is a one to one match type rule. In this scenario of a one to one type match, any amount difference within tolerance is automatically created as an external transaction in cash management.

Reconciliation Matching rules help you match bank statement lines and system transactions to minimize the need for manual intervention.

Define bank statement automatic reconciliation matching rules and assign them to bank statement automatic reconciliation rule sets. After you assign the rule sets to the bank account, the Autoreconciliation process picks up the reconciliation matching rules to achieve a higher match rate.

Specify the following for each matching rule:

  • Transaction Sources: Payables, Receivables, Payroll, Journals or External.

  • Matching Type: One to One, One to Many, Many to One, or Many to Many. The following table explains the different matching types available in Oracle Fusion Cash Management:

    Matching Type Description

    One to One

    A bank statement line is matched with a system transaction and reconciled against each other

    One to Many

    A bank statement line is reconciled against many system transactions

    Many to One

    Many bank statement lines are grouped and reconciled against a system transaction

    Many to Many

    Many statement lines are grouped and reconciled against many system transactions

  • Grouping Attributes: Used to group bank statement lines and system transactions based on the matching type you select. The combination of the attributes you select also determine what you can use as the matching criteria. You can use date, transaction type, and reconciliation reference as matching criteria only after you select these as grouping attributes. The following table displays the required grouping attributes for a selected matching type:

    Matching Type Statement Line Grouping Attributes System Transaction Grouping Attributes

    One to One

    Not applicable

    Not applicable

    One to Many

    Not applicable

    Grouping attributes required

    Many to One

    Grouping attributes required

    Not applicable

    Many to Many

    Grouping attributes required

    Grouping attributes required

    In Many to One matching the grouping attributes are used to group bank statement lines. In One to Many matching the grouping attributes are used to group system transactions.

    The following is a list of common grouping attributes that can be used to group bank statement lines:

    • Transaction date

    • Structured payment reference

    • Transaction currency

    • Transaction type

    • Reconciliation reference

    • Bank transaction code

    • Transaction code identifier

    • Counterparty bank account

    The following is a list of common grouping attributes that can be used to group system transactions:

    • Bank deposit number

    • Transaction date

    • Business unit

    • Counterparty bank account

    • Counterparty name

    • Journal batch name

    • Journal line description

    • Journal name

    • Payment file identifier

    • Payment process request name

    • Payment instruction identifier

    • Payment server order number

    • Logical group number

    • Payment method

    • Structured payment reference

    • Receipt batch number

    • Receipt class

    • Reconciliation match date

    • Reconciliation reference

    • Remittance batch number

    • Unique remittance identifier

    • Transaction currency

    • Transaction Type

    • Transaction source

  • Matching Criteria: Includes a list of commonly used matching attributes. You can simply select the attributes to include them in the matching rule you selected. The selected attributes define the matching conditions between the bank statement lines and the system transactions to be matched successfully when they're reconciled.

    Note: On the Create Reconciliation Matching Rule page the delivered setting for the matching type is One to One, and the check boxes for Reconciliation Reference, Date and Transaction Type are enabled. When you change the matching type to One to Many or Many to One or Many to Many, the check boxes are disabled.

    The matching criteria attributes are:

    • Amount

    • Date

    • Reconciliation reference

    • Transaction type

  • Advanced Matching Criteria: Enables you to specify additional matching logic or filtering conditions that must be true for the bank statement lines and system transactions to match successfully. Consider the following:

    • You have the option to enable or disable the Case Sensitive Comparison check box while creating a condition.

    • The data types on either side of the expressions, must be the same and correspond to each other when selected to match in the criteria. For example, if the attribute Statement Booking Date is selected on one side, then Transaction Date can be selected as the matching criteria. Date is the data type that's the same and corresponds to your search.

    • For literal expression type, the operand value should match the database value. For example: Statement.Transaction Type equals ACH

    The list of statement attributes available in the Create Condition page differs according to the matching type you select. The following lists some of the common statement attributes:

    • Statement.Account servicer reference

    • Statement.Additional entry information

    • Statement.Booking date

    • Statement.Check number

    • Statement.Clearing system reference

    • Statement.Contract ID

    • Statement.Counterparty bank account

    • Statement.Customer reference

    • Statement.End to End ID

    • Statement.Instruction ID

    • Statement.Instruction ID

    • Statement.Reconciliation match amount

    • Statement.Reconciliation reference

    • Statement Structured Payment reference

    • Statement.Transaction ID

    • Statement.Transaction currency

    • Statement.Transaction type

    • Statement.Value date

    The list of transaction attributes available in the Create Condition page differs according to the matching type you select. The following lists some of the common transaction attributes:

    • Transaction.Bank deposit number

    • Transaction.Business unit

    • Transaction.Counterparty name

    • Transaction.Counterparty site

    • Transaction.Journal Batch Name

    • Transaction.Journal Line Number

    • Transaction.Journal Name

    • Transaction.Payment reference

    • Transaction Payment Process Request Name

    • Transaction Payment file identifier

    • Transaction Payment instruction identifier

    • Transaction.Receipt batch number

    • Transaction.Reconciliation match amount

    • Transaction.Reconciliation match date

    • Transaction.Remittance batch number

    • Transaction Structured Payment reference

    • Transaction.Status

    • Transaction.Transaction currency

    • Transaction.Transaction date

    • Transaction.Transaction number

    • Transaction.Transaction source

    • Transaction.Transaction type

    • Transaction.Logical Group Number

    • Transaction.Payment Server Order Number

    • Transaction.Payment Reference

    • Transaction.Unique Remittance Identifier

    • Transaction.Party bank account

You can select one or multiple transaction sources in a rule. Consider the following:

  • If multiple sources are selected in a one to one or many to one matching rule, the autoreconciliation program looks for a matching transaction across the selected sources.

  • If multiple sources are selected in a one to many or many to many matching rule, the program first finds all available transactions across the selected sources and then applies grouping rule to the whole data pool. This means that the statement lines can be reconciled to a group that includes transactions across the different sources.

  • If you want transactions included in a group to be from the same transaction source then you can specify Transaction Source as a grouping attribute.

    Note

    Cash Management supports the journal reconciliation reference import using spreadsheet based tools such as, file-based data import and the Oracle Fusion ADF Desktop Integration.

    Once the required setups are completed the reconciliation reference is uploaded and stored to the journal lines.

Bank statement reconciliation rule sets are a group of matching rules and tolerance rules. They are assigned to a bank account and used to reconcile bank statement lines with transactions.

Consider the following when creating your rules:

  • Build the rule set and the rule set detail as a parent-child relationship.

  • Each rule set consists of one or more matching rules that can be prioritized or sequenced.

  • The rules should be ordered to achieve a greater reconciliation success rate. It's strongly recommended that one to one rules be sequenced ahead of rules of other types.

  • To provide an optimum reconciliation rate, you should change the sequence number depending on how accurately the given rule is likely to reconcile against the correct bank transactions.

For example, transactions from sources for which the bank provides you a reference ID are likely to have a higher reconciliation rate. These rules should be placed at the beginning with a lower sequence number. Conversely, transactions with no reference ID are likely to have duplicates or lower reconciliation rates, and you should place them at the end with a higher sequence number.

Automatically Reconciling Rejected Payments

You must enable the Opt in feature, Automatic Reconciliation of Reject Payments to automatically reconcile rejected payments reported on the imported bank statement. Follow these steps to enable the feature:

  • Select the transaction type as Reversal in the bank transaction code.

  • The application identifies the rejections on the bank statement lines with this transaction code and reversal indicator.

  • The autoreconciliation process identifies the rejection and un-reconciles the original settled payment and reconciles the original statement line with the rejected statement line.

Bank statement transaction codes are the internal codes that are used on a bank statement line to identify the type of transaction being reported. These are also referred to as:

  • Transaction codes

  • Statement codes

The following codes are examples:

  • 115- Lockbox Deposit

  • 475- Check paid

  • 698- Miscellaneous Fee

Oracle Fusion Cash Management maintains a single set of these codes and transform externally reported transaction codes from other formats into this single normalized set. You can use code map groups to map transaction codes reported on the external data file to the ones defined internally in the application. This configuration is done through Oracle Fusion Payments Code map group setup.

How You Map Configurable BAI2 Transaction Codes

When importing BAI2 bank statements, the flow indicator (DR/CR) of the bank statement line is determined by the transaction code associated to that line.

Configurable BAI2 transaction codes can be mapped to standard BAI2 codes to derive the desired statement line flow indicator when the file is imported.

Mapping Configurable BAI2 Transaction Codes

In this example, a credit code of 856 and a debit code of 868 are mapped as transaction codes using the following steps:
  1. In the Setup and Maintenance work area, go to the following:

  2. Offering: Financials

  3. Functional Area: Payments or Customer Payments

  4. Task: Manage Code Map Groups

  5. Search for the Name: BAI2 Bank Statements and click edit.

  6. In Mappings, enter a new record Field: CE_TRX_CODE.

  7. For the parent CE_TRX_CODE, add 2 rows in the Field values enter the following:

    Line Number Input and Output Values

    Line 1

    Enter Input Value: 856, Output Value: 275 (standard CREDIT BAI2 code).

    Line 2

    Enter Input Value: 868, Output Value: 575 (standard DEBIT BAI2 code).

  8. Save and Close.

  9. After loading and importing the BAI2 format bank statement, result in the following:

    Transaction Code Results

    Defined Input Value: 856

    Are imported with code 275 and the flow indicator as CREDIT.

    Defined Input Value: 868

    Are imported with code 575 and the flow indicator as DEBIT.

Bank Statement Transaction Creation Rules are used by Oracle Fusion Cash Management to identify an unreconciled bank statement line or lines and create and account for a transaction.

Configure Bank Statement Transaction Creation Rules by specifying some of the attributes and characteristics of the created transactions. Consider the following when configuring your rules:

  • Create as a separate business object.

  • Assign to a bank account in the Manage Bank Account page.

  • Arrange in order and group to be processed sequentially.

The group of sequenced rules on the bank account constitutes the bank accounts rule set that's used when running the Bank Statement Transaction Creation program.

Process the Bank Statement Transaction Creation Rules by running the Bank Statement Transaction Creation program to create transactions from unreconciled bank statement lines. The program is used to create transactions and account for first notice items such as bank charges, fees, or interest. You must perform the following prior to running the program.

  • Run autoreconciliation for the bank statement.

  • Perform any manual reconciliation on the bank statement.

This avoids creating external transaction from bank statement lines that already have transactions recorded in the application.

Create Banks, Branches, and Accounts in Spreadsheet

Use Microsoft Excel templates to rapidly implement the following setup objects:

  • Banks

  • Bank Branches

  • Bank Accounts

Functional Setup Manager Tasks

The following are the Functional Setup Manager tasks that are required to be performed to rapidly create the setup objects data. To access these tasks, create an implementation project that includes the Define Financials Configuration for Rapid Implementation task list:

  • Create Banks, Branches, and Accounts in Spreadsheet: Downloads the rapid implementation excel spreadsheet template. Enter the bank, branch, and bank account data in this spreadsheet, and generate the data file to be loaded.

  • Upload Banks, Branches, and Accounts: Launches the Upload Banks, Branches, and Accounts process with the data file to be uploaded as the parameter. You must upload the data file generated from the previous task.

Preparing Data

Prepare your bank, branch, and account information to enter into the spreadsheet template.

  • Bank information requires the country, name, and number.

  • Branch information requires name, number, BIC code, and alternate name.

  • Account information requires name, number, currency, legal entity, type, and IBAN.

After you finish preparing the data in the spreadsheet, click the Generate Banks, Branches, and Accounts File button. Save the generated XML file.

Loading Data

Use the following steps to load your data.

  • In the Setup and Maintenance work area, create an implementation project that includes the Define Financials Configuration for Rapid Implementation task list. From your implementation project, go to the Upload Banks, Branches, and Accounts task. This task launches the Upload Banks, Branches, and Accounts process.

  • Select the XML file you have saved earlier and submit the process.

  • Verify in the process monitor that the process completed successfully.

  • Review the banks, branches, and accounts created.

Best Practices

The following are recommended best practices:

  • Determine the Legal Entity for each bank account. The Legal Entity must be associated to a primary ledger.

  • Determine the use for each bank account: Payable, Receivable, or both.

  • Determine the Cash and Cash Clearing account for each bank account. Enter the entire account combination based on your chart of accounts, for example 01-000-1110-0000-000.

Setting Up Cash Positioning and Forecasting

How You Set Up Oracle Fusion Payments for Cash Management

To make ad hoc payments you must do the following:

  • Create a payee in Oracle Fusion Cash Management.

  • Review the Payment Methods in the tab; Usage Rules, for Cash Management in Oracle Fusion Payments.

  • Review the payment method defaulting rules in Oracle Fusion Payments and prioritize the Cash Management Payment Method accordingly.

Creating a payee in Cash Management is a separate task than setting up suppliers in procurement. The setup done in Cash Management is strictly used for making ad hoc payments from the application. You must also review and edit the set ups in Payments to successfully make payments.

Creating a Payee in Cash Management

  1. Create the payee in Cash Management. Enter the following payee information:

    Field Required Description

    Name

    Yes

    Name of the payee.

    Tax Registration Number

    No

    Description of the payee.

    Tax Registration Number

    No

    Unique identifier assigned to a payee by a tax authority.

    Active

    No, but recommended.

    Check box indicating if the payee is active or inactive.

  2. Create the bank account information. Enter the following bank account information:

    Field Description

    Country

    Country of the bank where the bank account belongs.

    Account Number

    Bank account number of the payee bank account.

    Currency

    Currency of the payee bank account

    Account Type

    Type of payee bank account. For example, checking or savings.

    Check Digit

    The account number validation.

    Account Name

    Name of the bank account holder.

    Secondary Account Reference

    Additional account reference such as the Building Society Role Number in the UK.

    Bank

    Name of the payee bank.

    Bank Branch

    Name of the payee bank branch.

    Routing Transit Number

    The routing transit number for electronic transfers.

    BIC Code

    The code used to SWIFT to identify the bank or bank branch.

    Active

    Check to indicate the bank account is active. The default is set to active.

  3. Click the Save and Close button to save your information.

Setting Up Usage Rules in Oracle Fusion Payments for Cash Management

  1. Navigate to Oracle Fusion Payments and the Create Payment Methods page.

  2. Enter the following required fields: Name, Code, and From Date.

  3. Select the Usage Rules tab.

  4. Select the Cash Management tab

  5. Select the check box Enable for use in Cash Management.

  6. Determine select All or Specific.

  7. Review the delivered Payment Process Transaction Types for Cash Management. Apply the appropriate payment types. The valid values are:

    • Bank Account Transfer

    • Ad Hoc Payment

  8. Review the payment method defaulting rules in Oracle Fusion Payments and prioritize the Cash Management Payment Method accordingly.

How You Set Up Cash Positioning and Forecasting

Use the following to set up your cash positioning and forecasting reporting requirements:

  • Specify Cash Positioning and Forecasting Options

  • Manage Cash Positioning and Forecasting Transaction Grouping

Specify Cash Positioning and Forecasting Options

Use the options page to define the extraction period used to transfer data to the Essbase cube. Transactions with transaction dates within that period are extracted to the cube. You can also select different GL accounting calendars to lay out the time dimension structure in the cubes.

Configure the following options:

Field Name Available Values Default Value

Extraction Duration

  • Last 3 months

  • Last 6 months

  • Last 1 year

  • Last 2 years

  • Last 3 years

Last 2 years

Reporting Currency

List of currencies defined in the application

USD - US Dollars

Balance Code

Internal Balance Codes lookups (LOV)

Closing booked

Balance Date Threshold Days

Number days defined before a missing bank statement is reported

2

Transaction Calendar

List of transaction calendars defined in the application, if not defined, everyday (7) is considered a business day.

No default

Time Periods

List of accounting calendars defined in the application

No default

Note: Once the cube is created and locked, the update is disabled in this page. You can't update the cube until you submit the Cash Position Data Deletion program to clear the details in the cube.

Manage Cash Positioning and Forecasting Transaction Grouping

You create or edit configurable dimensions for cash positioning and forecasting from this page. You must have the Manage Cash Positioning and Forecasting Transaction Grouping privilege to access the Create or Edit Cash Position Dimension page:

  • Search for the configurable dimensions defined in the application.

  • Create configurable dimensions to meet your company-specific requirements

  • Modify and edit configurable dimensions to meet reporting requirements.

  • Entering a description is optional but recommended.

The following table contains the fields to be completed:

Field Name Description

Name

Required and must be unique

Application

Required and valid values are Oracle Fusion Applications or Other.

Source

Required and the following are possible values:

  • Payables invoices

  • Payables payments

  • Receivables receipts

  • Receivables transactions

  • Bank statement

  • External cash transactions

Source Table

List of tables from the selected Application and Source

Source Column

List of the columns from the selected Source Table.

Note: Once the cube is created and locked, you can't update this page. You must submit the Cash Position Data Deletion program to clear the details in the cube to do an update.

Bank Account Validation

Bank Account Validation by Country: Albania to Guatemala

This outlines the country specific bank account validation rules performed in Oracle Fusion Cash Management.

The following countries have country specific validations:

  • Albania

  • Algeria

  • Andorra

  • Argentina

  • Australia

  • Austria

  • Azerbaijan

  • Bahrain

  • Belarus

  • Belgium

  • Bosnia and Herzegovina

  • Brazil

  • British Virgin Islands

  • Bulgaria

  • Canada

  • Columbia

  • Costa Rica

  • Croatia

  • Cyprus

  • Czech Republic

  • Denmark

  • Dominican Republic

  • Egypt

  • El Salvador

  • Estonia

  • Faroe Islands

  • Finland

  • France

  • French Guiana

  • Georgia

  • Germany

  • Gibraltar

  • Greece

  • Greenland

  • Guadeloupe

  • Guatemala

When entering bank accounts, different countries can have certain rules governing the format and content of the following related fields:

  1. Bank Code

  2. Branch Number

  3. Account Number

  4. Check Digit

  5. IBAN

Use the Disable Country Specific Bank Validations profile option to disable the country-specific validations pertaining to the bank code, branch number, account number, check digit, and IBAN. You can set this profile option at the site or user level. The profile is predefined with a default value of No at the site level. If the profile is set to Yes, these validations aren't performed. The checks for unique banks, branches, accounts, and the mandatory requirement of bank account number aren't affected by this profile.

Albania

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

Check Digit

  • Optional

IBAN

  • Optional, if entered, the following rules apply.

  • The modulus-97 rule is used to calculate the validity of the IBAN.

  • Length can't be more than 28 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Algeria

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

Check Digit

  • Optional

IBAN

  • Optional, if entered, the following rules apply.

  • The modulus-97 rule is used to calculate the validity of the IBAN.

  • Length can't be more than 26 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Andorra

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

Check Digit

  • Optional

IBAN

  • Optional, if entered, the following rules apply.

  • The modulus-97 rule is used to calculate the validity of the IBAN.

  • Length should be 24 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Argentina

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

  • Length should be a maximum of 22 characters.

  • Spaces and hyphens are allowed.

Check Digit

  • Optional

IBAN

  • Optional

Australia

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

  • If entered, the length should be either 2 or 3 numeric characters.

Branch Number

  • Mandatory

  • The combined length of the Branch Number and Bank Code should be 6 numeric characters. Hence, the valid length values (3,4,6) depend upon the Bank Code (3,2,0).

  • This field is labeled as Bank State Branch.

Account Number

  • Mandatory

  • Length should be between 5 to 10 characters.

  • If the account currency is Australian Dollar, account number should be numeric. For foreign currencies, alphanumeric values are allowed

Check Digit

  • Optional

IBAN

  • Optional, if entered, the following rules apply.

  • The modulus-97 rule is used to calculate the validity of the IBAN.

  • Length can't be more than 34 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Austria

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

  • Length should be of 5 numeric characters.

Branch Number

  • Optional

  • Length should be of 5 numeric characters.

Account Number

  • Mandatory

  • Length should be between 4 to 11 numeric characters.

Check Digit

  • Optional

IBAN

  • Mandatory

  • If the IBAN isn't entered, a warning message is displayed: IBAN hasn't been entered. This bank account is defined in a country that requires IBAN for payment processing.

  • The modulus-97 rule is used to calculate the validity of the IBAN

  • Length should be 20 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Azerbaijan

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

Check Digit

  • Optional

IBAN

  • Optional, if entered, the following rules apply.

  • The modulus-97 rule is used to calculate the validity of the IBAN.

  • Length can't be more than 28 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Bahrain

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

Check Digit

  • Optional

IBAN

  • Optional, if entered, the following rules apply.

  • The modulus-97 rule is used to calculate the validity of the IBAN.

  • Length can't be more than 22 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Belarus

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

Check Digit

  • Optional

IBAN

  • Optional, if entered, the following rules apply.

  • The modulus-97 rule is used to calculate the validity of the IBAN.

  • Length can't be more than 28 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Belgium

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

  • Length should be of 12 numeric characters.

  • It should be in the format 999-9999999-99.

  • A check algorithm is applied on the Account Number.

Check Digit

  • Optional

IBAN

  • Mandatory

  • If the IBAN isn't entered, a warning message is displayed: IBAN hasn't been entered. This bank account is defined in a country that requires IBAN for payment processing.

  • The modulus-97 rule is used to calculate the validity of the IBAN.

  • Length should be 16 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Check Algorithm for Account Number

  1. The entered check digit CD1, is the last two digits of the Account Number

  2. The calculated check digit CD2, is derived by concatenating the first two sections of the Account Number and calculating the remainder on dividing this by 97. If the remainder is equal to 0, then the calculated check digit's taken to be 97.

  3. If the entered check digit (CD1) and calculated check digit (CD2) are equal, then the Account Number is valid, else the check has failed.

  4. Additionally, if the entered check digit (that's, the last section) is '00', then the Account Number is invalid because the calculated check digit can never be 00 as per the 3rd point.

    Example using account number 123-4567890-78

    • The entered check digit (CD1) is '78'. The concatenation of the first two sections gives '1234567890'

    • Divide the result by '97'. 1234567890 / 97 = 12727504

    • Derive the remainder. 1234567890 - (12727504 * 97) = 2 Therefore CD2 = 2

    • Here CD1 <> CD2, therefore the Account Number isn't valid.

      In this case, a valid Account Number would be '123456789-02'.

Bosnia and Herzegovina

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

Check Digit

  • Optional

IBAN

  • Mandatory

  • If the IBAN isn't entered, a warning message is displayed: IBAN hasn't been entered. This bank account is defined in a country that requires IBAN for payment processing.

  • The modulus-97 rule is used to calculate the validity of the IBAN.

  • Length should be 20 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Brazil

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Mandatory

  • Length should be a maximum of 3 numeric characters.

  • If the length is less than 3, then it's converted to a 3 digit number by prefixing it with as many leading zeroes as is necessary.

Branch Number

  • Mandatory

  • Length should be a maximum of 5 numeric characters.

Account Number

  • Mandatory

Check Digit

  • Optional

Company Code

  • Optional.

  • This is entered in the Account Creation form.

  • If entered, length should be a maximum of 15 numeric characters

Secondary Account Reference

  • This field is labeled as Company Code.

IBAN

  • Optional, if entered, the following rules apply.

  • The modulus-97 rule is used to calculate the validity of the IBAN.

  • Length can't be more than 29 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

British Virgin Islands

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

Check Digit

  • Optional

IBAN

  • Optional, if entered, the following rules apply.

  • The modulus-97 rule is used to calculate the validity of the IBAN.

  • Length can’t be more than 24 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Bulgaria

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

Check Digit

  • Optional

IBAN

  • Mandatory

  • If the IBAN isn't entered, a warning message is displayed: IBAN hasn't been entered. This bank account is defined in a country that requires IBAN for payment processing.

  • The modulus-97 rule is used to calculate the validity of the IBAN.

  • Length should be 22 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Canada

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

  • This field is labeled as Routing Transit Number.

Account Number

  • Mandatory

Check Digit

  • Optional

IBAN

  • Optional, if entered, the following rules apply.

  • The modulus-97 rule is used to calculate the validity of the IBAN.

  • Length can't be more than 34 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Columbia

For Colombia, there are no validations for Bank Code, Branch Number, Account Number, or Check Digit fields as illustrated in the following table:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

Check Digit

  • Optional

Tax Payer ID

  • Optional

  • Length should be a maximum of 15 numeric characters 14 digits for Tax Payer ID plus the last digit for check digit.

  • it's unique within the country.

  • Cross Validations of Tax Payer ID in Customers, Suppliers, and Companies. If the Tax Payer ID is used by a Customer, Supplier, or a Company, then the Customer name, Supplier name, or the Company name should match with the Bank name.

  • A check digit's applied on the Tax Payer ID.

IBAN

  • Optional, if entered, the following rules apply.

  • The modulus-97 rule is used to calculate the validity of the IBAN.

  • Length can't be more than 34 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Check Algorithm for Tax Payer ID

The first 15 digits are multiplied by the associated factor, as illustrated in the following table.

Digit Factor

1st

71

2nd

67

3rd

59

4th

53

5th

47

6th

43

7th

41

8th

37

9th

29

10th

23

11th

19

12th

17

13th

13

14th

7

15th

3

  1. These 15 products are added and the sum is divided by 11.

  2. If the remainder is 1 or 0, then the Check Digit should be 1 or 0 respectively.

  3. If the remainder isn't 1 or 0, then the remainder is subtracted by 11 and that should be the Check Digit.

Costa Rica

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

Check Digit

  • Optional

IBAN

  • Optional, if entered, the following rules apply.

  • The modulus-97 rule is used to calculate the validity of the IBAN.

  • Length can't be more than 22 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Croatia

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

Check Digit

  • Optional

IBAN

  • Mandatory

  • If the IBAN isn't entered, a warning message is displayed: IBAN hasn't been entered. This bank account is defined in a country that requires IBAN for payment processing.

  • The modulus-97 rule is used to calculate the validity of the IBAN.

  • Length should be 21 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Cyprus

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

Check Digit

  • Optional

IBAN

  • Mandatory

  • If the IBAN isn't entered, a warning message is displayed: IBAN hasn't been entered. This bank account is defined in a country that requires IBAN for payment processing.

  • The modulus-97 rule is used to calculate the validity of the IBAN.

  • Length should be 28 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Czech Republic

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

Check Digit

  • Optional

IBAN

  • Mandatory

  • If the IBAN isn't entered, a warning message is displayed: IBAN hasn't been entered. This bank account is defined in a country that requires IBAN for payment processing.

  • The modulus-97 rule is used to calculate the validity of the IBAN.

  • Length should be 24 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Denmark

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Length should be a maximum of 10 numeric characters

Check Digit

  • Optional

IBAN

  • Mandatory

  • If the IBAN isn't entered, a warning message is displayed: IBAN hasn't been entered. This bank account is defined in a country that requires IBAN for payment processing.

  • The modulus-97 rule is used to calculate the validity of the IBAN.

  • Length should be 18 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Dominican Republic

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

Check Digit

  • Optional

IBAN

  • Optional, if entered, the following rules apply.

  • The modulus-97 rule is used to calculate the validity of the IBAN.

  • Length can't be more than 28 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Egypt

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

Check Digit

  • Optional

IBAN

  • Optional, if entered, the following rules apply.

  • The modulus-97 rule is used to calculate the validity of the IBAN.

  • Length can't be more than 27 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

El Salvador

.

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

Check Digit

  • Optional

IBAN

  • Optional, if entered, the following rules apply.

  • The modulus-97 rule is used to calculate the validity of the IBAN.

  • Length can't be more than 28 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Estonia

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

Check Digit

  • Optional

IBAN

  • Mandatory

  • If the IBAN isn't entered, a warning message is displayed: IBAN hasn't been entered. This bank account is defined in a country that requires IBAN for payment processing.

  • The modulus-97 rule is used to calculate the validity of the IBAN.

  • Length should be 20 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Faroe Islands

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

Check Digit

  • Optional

IBAN

  • Optional, if entered, the following rules apply.

  • The modulus-97 rule is used to calculate the validity of the IBAN.

  • Length can't be more than 18 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Finland

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

  • If entered, it should be 6 numeric characters.

Account Number

  • Mandatory

  • Length should be between 8 to 14 numeric characters.

  • A check algorithm is applied on the Account Number.

Check Digit

  • Optional

  • If entered, it should be 1 numeric digit.

IBAN

  • Mandatory

  • If the IBAN isn't entered, a warning message is displayed: IBAN hasn't been entered. This bank account is defined in a country that requires IBAN for payment processing.

  • The modulus-97 rule is used to calculate the validity of the IBAN.

  • Length should be 18 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

If 1st digit of Account Number is: Check Value Method

1

1

2

1

3

1

4

2

5

2

6

1

7

2

8

1

9

1

Method 1

The check is formed in the following two parts:

  • The first part of the check is formed from the first 6 digits of the Account Number. To illustrate, if the account number is 123456789, then the first part of check would be created as 123456.

  • The second part of check is formed as an eight digit value, comprising the 8th to 15th digits of the Account Number. If the length is less than 8, then it's converted to an 8 digit number by prefixing it with as many leading zeroes as is necessary. Using the same example, the second part of check would be created as 00000089. check is then formed by concatenating the two parts. So, in our example the check is formed as 12345600000089.

Method 2

The check is formed in the following three parts:

  • The first part of the check is formed from the first 6 digits of the Account Number. To illustrate, if the account number is 123456789, then the first part of check would be created as 123456.

  • The second part of check is formed as the 8th digit of the Account Number. Using the same example, the second part of check would be created as 8.

  • The third part of check is formed as a seven digit value, comprising the 9th to 15th digits of the Account Number. If the length is less than 7, then it's converted to a 7 digit number by prefixing it with as many leading zeroes as is necessary. Using the same example, the second part of check would be created as 0000009. The check is then formed by concatenating the three parts. So, in our example the check is formed as 12345680000009.

A computed sum is then calculated based on the value of the check. Different calculations are performed depending on the first two digits of the formed check value.

If the first two digits of the check are '88', then:

  • The Finnish government provides the following factor table. The 8th to 13th digits of the check number are multiplied by the associated factor. The computed sum is then calculated by summing the totals.

Digit Factor

8th

1

9th

3

10th

7

11th

1

12th

3

13th

7

Example using check number 88345600000089: Multiply the given digits with the given factor.

Digit Value Factor Result

8th Digit

0

1

0

9th Digit

0

3

0

10th Digit

0

7

0

11th Digit

0

7

0

12th Digit

0

3

0

13th Digit

8

7

56

Total

N/A

N/A

56

So the computed sum for this example is 56.

The test fails unless either of the following applies:

  • The 14th digit of the check should equal the value of 10 minus the last digit of the computed sum. For the check value is '88345600000089', the last digit of the computed sum is 6. So 10 - 6 = 4. So, the 14th digit of the check should equal 4. The test fails here as the 14th digit's 9.

  • Both the 14th digit of the check and the last digit of the computed sum are 0. Using the same example, the test fails here as both values aren't 0.

If the first two digits of the check aren't '88', then the computed sum is calculated for each of the first 13 digits by adding the even numbered digits to the following calculated sum for each odd numbered digit :

  • Multiply the digit by 2.

  • Divide the result by 10.

  • From the result add the integer to the remainder.

Example using account number 123456800000089:

Digit Value Multiply (a) Divide (b) Integer Remainder Result

1st

1

2

0.2

0

2

2

2nd

2

N/A

N/A

N/A

N/A

2

3rd

3

6

0.6

0

6

6

4th

4

N/A

N/A

N/A

N/A

4

5th

5

10

1

1

0

1

6th

6

N/A

N/A

N/A

N/A

6

7th

0

16

1.6

1

6

0

8th

0

N/A

N/A

N/A

N/A

0

9th

0

0

0

0

0

0

10th

0

N/A

N/A

N/A

N/A

0

11th

0

0

0

0

0

0

12th

0

N/A

N/A

N/A

N/A

0

13th

8

16

1.6

1

6

7

Total

N/A

N/A

N/A

N/A

N/A

28

The computed sum is then converted using the following process, before being used to see if the Account Number is valid:

  1. Computed sum is added to 9.

  2. The result is divided by 10.

  3. The integer result is multiplied by 10.

  4. The result is subtracted by the original computed sum.

So the computed sum '282 is converted to '2' as:

  1. 28 + 9 = 37

  2. 37/10 = 3.7. Integer result therefore = 3

  3. 3 * 10 = 30

  4. 30 - 28 = 2

This number is then compared to the 14th digit of the Account Number. If it matches, then the test is passed, else it's failed.

In our example, the test fails as the 14th digit of the account number is 9. If the 14th digit had been 2, then the test would have been passed.

France

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Mandatory

  • Length should be a maximum of 5 numeric characters.

  • If the length is less than 5, then it's converted to a 5 digit number by prefixing it with as many leading zeroes as is necessary.

Branch Number

  • Mandatory

  • Length should be a maximum of 5 numeric characters.

  • If the length is less than 5, then it's converted to a 5 digit number by prefixing it with as many leading zeroes as is necessary.

Account Number

  • Mandatory

  • Length should be a maximum of 11 numeric characters

  • Special characters and spaces aren't allowed

Check Digit

  • Optional

  • If entered, length should be a maximum of 2 numeric characters.

  • A check algorithm is applied on the check digit.

Account Type

  • This field is labeled as Deposit Type.

IBAN

  • Mandatory

  • If the IBAN isn't entered, a warning message is displayed: IBAN hasn't been entered. This bank account is defined in a country that requires IBAN for payment processing.

  • The modulus-97 rule is used to calculate the validity of the IBAN.

  • Length should be 27 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Check Algorithm for Check Digit

A check digit's calculated (CD1) from the Account Number, Bank Code, and Branch Number in the following manner. This is then used as the basis for the check digit validity test.

CDI

For the check algorithm, the digits of the Account Number entered as characters A to Z. are converted to numeric values, the French government provides the following conversion table:

Value Conversion

A, J

1

B, K, S

2

C, L, T

3

D, M, U

4

E, N, V

5

F, O, W

6

G, P, X

7

H, Q, Y

8

I, R, Z

9

Example using account number A1234567890:

The letter A is converted by applying the table to 1, so the account number becomes 11234567890.

A value for CD1 is formed by joining together the bank fields in the following way:

  • The Bank Code is concatenated with Branch Number concatenated to the converted Account Number. To illustrate with the Bank Code as 12345, the Branch Number as 67890 and the converted Account Number as 11234567890. Then CD1 is created as 123456789011234567890.

  • To this concatenated value, 00 is added as a suffix and the resulting value is divided by 97. The remainder obtained as result of this division is then subtracted from 97. The result of this subtraction is the calculated check digit.

  • In our example, suffixing 00 gives 12345678901123456789000. Dividing by 97 and deriving the remainder. Mod (12345678901123456789000, 97) = 86 Subtract from 97. 97 - 86 = 11

  • If the user entered Check Digit's equal to this calculated value, then the validation is successful.

In the given example, as the user entered check digit'sn't 11, the check isn't valid.

French Guiana

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

Check Digit

  • Optional

IBAN

  • Mandatory

  • If the IBAN isn't entered, a warning message is displayed: IBAN hasn't been entered. This bank account is defined in a country that requires IBAN for payment processing.

  • The modulus-97 rule is used to calculate the validity of the IBAN.

  • Length should be 34 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Georgia

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

Check Digit

  • Optional

IBAN

  • Optional, if entered, the following rules apply.

  • The modulus-97 rule is used to calculate the validity of the IBAN.

  • Length should be 24 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Germany

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

  • If entered, then the length should be 8 numeric characters.

Branch Number

  • Optional

  • If entered, then the length should be 8 numeric characters.

  • If the Bank Code and Branch Number are entered, then both values must match.

Account Number

  • Mandatory

  • Length should be a maximum of 10 numeric characters.

Check Digit

  • Optional

  • If a value is entered for the check digit, then it must be a single digit and must match the last digit of the Account Number.

IBAN

  • Mandatory

  • If the IBAN isn't entered, a warning message is displayed: IBAN hasn't been entered. This bank account is defined in a country that requires IBAN for payment processing.

  • The modulus-97 rule is used to calculate the validity of the IBAN.

  • Length should be 22 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Gibraltar

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

Check Digit

  • Optional

IBAN

  • Mandatory

  • If the IBAN isn't entered, a warning message is displayed: IBAN hasn't been entered. This bank account is defined in a country that requires IBAN for payment processing.

  • The modulus-97 rule is used to calculate the validity of the IBAN.

  • Length should be 23 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Greece

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

  • If entered, then the length should be of 3 numeric characters.

Branch Number

  • Optional

  • If entered, then the length should be of 4 numeric characters.

Account Number

  • Mandatory

  • Length should be between 8 to 16 alphanumeric characters.

Check Digit

  • Optional

  • If a value is entered, then it must be one numeric character.

IBAN

  • Mandatory

  • If the IBAN isn't entered, a warning message is displayed: IBAN hasn't been entered. This bank account is defined in a country that requires IBAN for payment processing.

  • The modulus-97 rule is used to calculate the validity of the IBAN.

  • Length should be 27 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Greenland

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

Check Digit

  • Optional

IBAN

  • Optional, if entered, the following rules apply.

  • The modulus-97 rule is used to calculate the validity of the IBAN.

  • Length can't be more than 18 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Guadeloupe

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

Check Digit

  • Optional

IBAN

  • Mandatory

  • If the IBAN isn't entered, a warning message is displayed: IBAN hasn't been entered. This bank account is defined in a country that requires IBAN for payment processing.

  • The modulus-97 rule is used to calculate the validity of the IBAN.

  • Length should be 34 characters. Leading and trailing spaces are ignored. There should be no spaces in the middle. .

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Guatemala

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

Check Digit

  • Optional

IBAN

  • Optional, if entered, the following rules apply.

  • The modulus-97 rule is used to calculate the validity of the IBAN.

  • Length can't be more than 28 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Bank Account Validation by Country: Hungary to Norway

This outlines the country-specific bank account validation rules performed in Oracle Fusion Cash Management.

The following countries have country-specific validations:

  • Hungary

  • Iceland

  • India

  • Ireland

  • Israel

  • Iran

  • Iraq

  • Italy

  • Ivory Coast

  • Japan

  • Jordan

  • Kazakhstan

  • Kosovo

  • Kuwait

  • Latvia

  • Lebanon

  • Liechtenstein

  • Lithuania

  • Luxembourg

  • Malta

  • Martinique

  • Mauritania

  • Mauritius

  • Mayotte

  • Mexico

  • Moldova

  • Monaco

  • Montenegro

  • Morocco

  • Netherlands

  • New Zealand

  • Norway

When entering bank accounts, different countries can have certain rules governing the format and content of the following related fields:

  1. Bank Code

  2. Branch Number

  3. Account Number

  4. Check Digit

  5. IBAN

Use the Disable Country Specific Bank Validations profile option to disable the country-specific validations pertaining to the bank code, branch number, account number, check digit, and IBAN. You can set this profile option at the site or user level. The profile is predefined with a default value of No at the site level. If the profile is set to Yes, these validations aren't performed. The checks for unique banks, branches, accounts, and the mandatory requirement of bank account number aren't affected by this profile.

Hungary

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

Check Digit

  • Optional

IBAN

  • Mandatory

  • If the IBAN isn't entered, a warning message is displayed: IBAN hasn't been entered. This bank account is defined in a country that requires IBAN for payment processing.

  • The modulus-97 rule is used to calculate the validity of the IBAN

  • Length should be 28 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Iceland

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

  • If entered, then the length should be of 4 numeric characters.

  • If the length is less than 4, then it is converted to a 4 digit number by prefixing it with as many leading zeroes as is necessary.

Branch Number

  • Optional

  • If entered, then the length should be of 4 numeric characters.

  • If the Bank Code and Branch Number are entered, then both values must match.

Account Number

  • Mandatory

  • Length should be a maximum of 18 numeric characters.

  • If the length is less than 18, then it is converted to an 18 digit number by prefixing it with as many leading zeroes as is necessary.

  • A check algorithm is applied on the Account Number.

Check Digit

  • Optional

  • If a value is entered for the check digit, then it must be a single digit and must match the seventeenth digit of the Account Number.

IBAN

  • Mandatory

  • If the IBAN isn't entered, a warning message is displayed: IBAN hasn't been entered. This bank account is defined in a country that requires IBAN for payment processing.

  • The modulus-97 rule is used to calculate the validity of the IBAN

  • Length should be 26 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Check Algorithm for Account Number

  1. Check algorithm is performed against the Account Number (from digit 9 to 16). Each of these digits is multiplied with the factors as given in the following table:

Digit Factor

9th

3

10th

2

11th

7

12th

6

13th

5

14th

4

15th

3

16th

2

These products are added and the sum is divided by 11. The remainder obtained as a result of this division is subtracted from 11 to obtain the calculated check digit. If remainder is 0, then calculated check digit is taken as 0.

This calculated check digit should match the entered check digit (seventeenth digit of the Account Number), else the Account Number isn't valid.

India

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

  • This field is labeled as the IFSC Code

Account Number

  • Mandatory

Check Digit

  • Optional

IBAN

  • Optional, if entered, the following rules apply.

  • The modulus-97 rule is used to calculate the validity of the IBAN.

  • Length can't be more than 34 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Ireland

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

  • If entered, then the length should be of 6 numeric characters.

Branch Number

  • Optional

  • If entered, then the length should be of 6 numeric characters.

  • If the Bank Code and Branch Number are entered, then both values must match.

Account Number

  • Mandatory

  • Length should be 8 numeric characters.

Check Digit

  • Optional

IBAN

  • Mandatory

  • If the IBAN isn't entered, a warning message is displayed: IBAN hasn't been entered. This bank account is defined in a country that requires IBAN for payment processing.

  • The modulus-97 rule is used to calculate the validity of the IBAN

  • Length should be 22 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Israel

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Mandatory

  • If entered, the length should be a maximum 2 numeric characters

Branch Number

  • Mandatory

  • Length should be 3 numeric characters.

Account Number

  • Mandatory

  • Length should be a maximum of 13 numeric characters.

  • Spaces aren't allowed.

Check Digit

  • Optional

IBAN

  • Optional, if entered, the following rules apply.

  • The modulus-97 rule is used to calculate the validity of the IBAN.

  • Length can't be more than 23 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Iran

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

Check Digit

  • Optional

IBAN

  • Optional, if entered, the following rules apply.

  • The modulus-97 rule is used to calculate the validity of the IBAN.

  • Length can't be more than 26 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Iraq

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

Check Digit

  • Optional

IBAN

  • Optional, if entered, the following rules apply.

  • The modulus-97 rule is used to calculate the validity of the IBAN.

  • Length can't be more than 23 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Italy

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Mandatory

  • Length should be a maximum of 5 numeric characters.

Branch Number

  • Mandatory

  • Length should be a maximum of 5 numeric characters.

Account Number

  • Mandatory

  • Length should be a maximum of 12 alphanumeric characters.

  • If the length is less than 12, then it is converted to a 12 digit number by prefixing it with as many leading zeroes as is necessary.

Check Digit

  • Optional

  • If entered, length should be a single alphabetic character and a check algorithm is applied on the Check Digit.

IBAN

  • Mandatory

  • If the IBAN isn't entered, a warning message is displayed: IBAN hasn't been entered. This bank account is defined in a country that requires IBAN for payment processing.

  • The modulus-97 rule is used to calculate the validity of the IBAN

  • Length should be 27 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Check Algorithm for Check Digit

The check digit is used to validate against the Bank Code, Branch Number, and Account Number. These are concatenated to obtain a 22 character string.

Each character is assigned a value depending upon whether the character is in an odd position or an even position in the string as given in the following table:

Even Position Values Odd Position Values

A/0 = 0

A/0 = 1

B/1 = 1

B/1 = 0

C/2 = 2

C/2 = 5

D/3 = 3

D/3 = 7

E/4 = 4

E/4 = 9

F/5 = 5

F/5 = 13

G/6 = 6

G/6 = 15

H/7 = 7

H/7 = 17

I/8 = 8

I/8 = 19

J/9 = 9

J/9 = 21

K = 10

K = 2

L = 11

L = 4

M = 12

M = 18

N = 13

N = 20

O = 14

O = 11

P = 15

P = 3

Q = 16

Q = 6

R = 17

R = 8

S = 18

S = 12

T = 19

T = 14

U = 20

U = 16

V = 21

V = 10

W = 22

W = 22

X = 23

X = 25

Y = 24

Y = 24

Z = 25

Z = 23

The first character is an odd position. The values assigned are added up and the sum is divided 26.

The remainder obtained as a result of this division is converted into an alphabet as given in the following table:

Transformation Algorithm

Calculation Calculation Calculation

0 = A

9 = J

18 = S

1 = B

10 = K

19 = T

2 = C

11 = L

20 = U

3 = D

12 = M

21 = V

4 = E

13 = N

22 = W

5 = F

14 = O

23 = X

6 = G

15 = P

24 = Y

7 = H

16 = Q

25 = Z

8 = I

17 = R

N/A

This value should be the same as the user entered check digit or else the Check Digit validation fails.

Ivory Coast

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

Check Digit

  • Optional

IBAN

  • Optional, if entered, the following rules apply.

  • The modulus-97 rule is used to calculate the validity of the IBAN.

  • Length can't be more than 28 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Japan

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Mandatory

  • Length should be 4 numeric characters

Alternate Bank Name

  • Optional

Branch Number

  • Mandatory

  • Length should be 3 numeric characters.

Alternate Branch Name

  • Optional

Account Number

  • Mandatory

Account Type

  • Mandatory

  • This field is labeled as Deposit Type.

Check Digit

  • Optional

IBAN

  • Optional, if entered, the following rules apply.

  • The modulus-97 rule is used to calculate the validity of the IBAN.

  • Length can't be more than 34 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Jordan

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

Check Digit

  • Optional

IBAN

  • Optional, if entered, the following rules apply.

  • The modulus-97 rule is used to calculate the validity of the IBAN.

  • Length can't be more than 30 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Kazakhstan

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

Check Digit

  • Optional

IBAN

  • Optional, if entered, the following rules apply.

  • The modulus-97 rule is used to calculate the validity of the IBAN.

  • Length can't be more than 20 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Kosovo

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

Check Digit

  • Optional

IBAN

  • Optional, if entered, the following rules apply.

  • The modulus-97 rule is used to calculate the validity of the IBAN.

  • Length can't be more than 20 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Kuwait

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

  • Length should be a maximum of 22 characters.

  • Spaces and hyphens are allowed.

Check Digit

  • Optional

IBAN

  • Optional, if entered, the following rules apply.

  • The modulus-97 rule is used to calculate the validity of the IBAN

  • Length can't be more than 30 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

Latvia

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

Check Digit

  • Optional

IBAN

  • Mandatory

  • If the IBAN isn't entered, a warning message is displayed: IBAN hasn't been entered. This bank account is defined in a country that requires IBAN for payment processing.

  • The modulus-97 rule is used to calculate the validity of the IBAN

  • Length should be 21 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Lebanon

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

Check Digit

  • Optional

IBAN

  • Optional, if entered, the following rules apply.

  • The modulus-97 rule is used to calculate the validity of the IBAN.

  • Length can't be more than 28 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Liechtenstein

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

Check Digit

  • Optional

IBAN

  • Mandatory

  • If the IBAN isn't entered, a warning message is displayed: IBAN hasn't been entered. This bank account is defined in a country that requires IBAN for payment processing.

  • The modulus-97 rule is used to calculate the validity of the IBAN

  • Length should be 21 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Lithuania

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

Check Digit

  • Optional

IBAN

  • Mandatory

  • If the IBAN isn't entered, a warning message is displayed: IBAN hasn't been entered. This bank account is defined in a country that requires IBAN for payment processing.

  • The modulus-97 rule is used to calculate the validity of the IBAN

  • Length should be 20 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Luxembourg

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

  • If entered, then the length should be 3 numeric characters.

Branch Number

  • Optional

  • If entered, then the length should be 3 numeric characters.

  • If the Bank Code and Branch Number are entered, then both values must match.

Account Number

  • Mandatory

  • Length should be a maximum of 13 characters.

Check Digit

  • Optional

  • If entered, then the length should be 2 numeric characters

IBAN

  • Mandatory

  • If the IBAN isn't entered, a warning message is displayed: IBAN hasn't been entered. This bank account is defined in a country that requires IBAN for payment processing.

  • The modulus-97 rule is used to calculate the validity of the IBAN

  • Length should be 20 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Malta

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

Check Digit

  • Optional

IBAN

  • Mandatory

  • If the IBAN isn't entered, a warning message is displayed: IBAN hasn't been entered. This bank account is defined in a country that requires IBAN for payment processing.

  • The modulus-97 rule is used to calculate the validity of the IBAN

  • Length should be 31 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Martinique

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

Check Digit

  • Optional

IBAN

  • Mandatory

  • If the IBAN isn't entered, a warning message is displayed: IBAN hasn't been entered. This bank account is defined in a country that requires IBAN for payment processing.

  • The modulus-97 rule is used to calculate the validity of the IBAN

  • Length should be 34 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Mauritania

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

Check Digit

  • Optional

IBAN

  • Optional, if entered, the following rules apply.

  • The modulus-97 rule is used to calculate the validity of the IBAN.

  • Length can't be more than 27 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Mauritius

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

Check Digit

  • Optional

IBAN

  • Mandatory

  • If the IBAN isn't entered, a warning message is displayed: IBAN hasn't been entered. This bank account is defined in a country that requires IBAN for payment processing.

  • The modulus-97 rule is used to calculate the validity of the IBAN

  • Length should be 30 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Mayotte

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

Check Digit

  • Optional

IBAN

  • Mandatory

  • If the IBAN isn't entered, a warning message is displayed: IBAN hasn't been entered. This bank account is defined in a country that requires IBAN for payment processing.

  • The modulus-97 rule is used to calculate the validity of the IBAN

  • Length should be 34 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Mexico

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

  • Length should be between 10 to 11 numeric characters.

  • Spaces and hyphens are allowed.

Check Digit

  • Optional

IBAN

  • Optional

Secondary Account Reference

  • Optional

  • If entered:

    • Should be of 18 digits

    • Should be numeric

Moldova

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

Check Digit

  • Optional

IBAN

  • Optional, if entered, the following rules apply.

  • The modulus-97 rule is used to calculate the validity of the IBAN.

  • Length can't be more than 24 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Monaco

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

Check Digit

  • Optional

IBAN

  • Mandatory

  • If the IBAN isn't entered, a warning message is displayed: IBAN hasn't been entered. This bank account is defined in a country that requires IBAN for payment processing.

  • The modulus-97 rule is used to calculate the validity of the IBAN

  • Length can't be more than 27 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Montenegro

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

Check Digit

  • Optional

IBAN

  • Mandatory

  • If the IBAN isn't entered, a warning message is displayed: IBAN hasn't been entered. This bank account is defined in a country that requires IBAN for payment processing.

  • The modulus-97 rule is used to calculate the validity of the IBAN

  • Length should be 22 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Morocco

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

Check Digit

  • Optional

IBAN

  • Optional, if entered, the following rules apply.

  • The modulus-97 rule is used to calculate the validity of the IBAN.

  • Length can't be more than 28 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Netherlands

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

  • Two types of account numbers are validated:

  • If the bank account number is numeric and consists of one of the following then bank account will be considered as Post or Giro Account.

    • length is 7 digits or less, or

    • prefixed with 000, or

    • prefixed with P or G

    There is no check digit validation for Post or Giro accounts.

  • For other account numbers, the length should be between 9 and 10 numeric characters. A check algorithm is applied on the Account Number.

Check Digit

  • Optional

IBAN

  • Mandatory

  • If the IBAN isn't entered, a warning message is displayed: IBAN hasn't been entered. This bank account is defined in a country that requires IBAN for payment processing.

  • The modulus-97 rule is used to calculate the validity of the IBAN

  • Length should be 18 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Check Algorithm for Non-Post or Giro Account Number

  1. If the length is less than 10, then it is converted to a 10 digit number by prefixing it with as many leading zeroes as is necessary.

  2. The Netherlands government provides the following factor table for each of the 10 digits:

Digit Factor

1st

10

2nd

9

3rd

8

4th

7

5th

6

6th

5

7th

4

8th

3

9th

2

10th

1

These are multiplied and the sum of the products is calculated 4.

If the result so obtained is perfectly divisible by 11 (that's, no remainder on division by 11), then the test is successful, otherwise the account number entered isn't valid.

New Zealand

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Mandatory

  • Length should be 2 numeric characters.

Branch Number

  • Mandatory

  • Length should be 4 numeric characters.

  • This field is labeled Bank State Branch.

Account Number

  • Mandatory

  • Length should be a maximum of 8 numeric characters.

  • Account Suffix should be between 2 to 4 numeric characters.

Check Digit

  • Optional

Description

  • This field is labeled Reference.

IBAN

  • Optional, if entered, the following rules apply.

  • The modulus-97 rule is used to calculate the validity of the IBAN.

  • Length can't be more than 34 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Norway

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

  • Length should be of 11 numeric characters.

  • A check algorithm is applied on the Account Number, if the 5th and 6th digits of the account number aren't 00.

For example, for Account Number, 1234001234, the check algorithm will not be applied but for Account Number 02056439653, the check algorithm will be applied as outlined in the Check Algorithm for Account Number, following this table.

Check Digit

  • Optional

IBAN

  • Mandatory

  • If the IBAN isn't entered, a warning message is displayed: IBAN hasn't been entered. This bank account is defined in a country that requires IBAN for payment processing.

  • The modulus-97 rule is used to calculate the validity of the IBAN

  • Length should be 15 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Check Algorithm for Account Number

1. The check digit is set as the last (that's, the 11th digit) of the Account Number. For example, if the account number is 02056439653, then the check digit is set to 3.

2. The Norwegian government provides the following factor table:

Digit Factor

1st

5

2nd

4

3rd

3

4th

2

5th

7

6th

6

7th

5

8th

4

9th

3

10th

2

The first ten digits of the account number are multiplied by the associated factor. The computed sum is then calculated by summing the totals.

3. Example using account number 02056439653:

Multiply each digit with the given factor. The following table illustrates the factors that determine validation:

Digit Value Factor Result

1st

0

5

0

2nd

2

4

8

3rd

0

3

0

4th

5

2

10

5th

6

7

42

6th

4

6

24

7th

3

5

15

8th

9

4

36

9th

6

3

18

10th

5

2

10

Total

N/A

N/A

163

So the computed sum for this example is 163.

4. The computed sum is then added to the check digit. In the example, 163 + 3 = 166.

5. Divide the result by 11. 166 / 11 = 15 6.

6. Derive the remainder. 166 - (11 * 15) = 1.

7. If the remainder is '0', then the validation is successful, else the check fails.

8. In the given example, the check fails the Account Number as the remainder is 1. If the 11th digit of the Account Number was 2 (that's, the check digit would be 2), then the remainder would be 165 - (11 * 15) = 0 and the check on the Account Number would be successful.

Bank Account Validation by Country: Pakistan to the United States

This outlines the country specific bank account validation rules performed in Oracle Fusion Cash Management.

The following countries have country specific validations:

  • Pakistan

  • Palestine

  • Poland

  • Portugal

  • Qatar

  • Reunion

  • Romania

  • Saint Barthelemy

  • Saint Lucia

  • San Marino

  • Saint Martin

  • Saint Pierre and Miquelon

  • Saudi Arabia

  • Serbia

  • Serbia and Montenegro

  • Senegal

  • Seychelles

  • Singapore

  • Slovakia

  • Slovenia

  • Spain

  • Sweden

  • Switzerland

  • The Former Yugoslav Republic of Macedonia

  • Tunisia

  • Turkey

  • Ukraine

  • United Arab Emirates

  • United Kingdom

  • United States

When entering bank accounts, different countries can have certain rules governing the format and content of the following related fields:

  1. Bank Code

  2. Branch Number

  3. Account Number

  4. Check Digit

  5. IBAN

Use the Disable Country Specific Bank Validations profile option to disable the country-specific validations pertaining to the bank code, branch number, account number, check digit, and IBAN. You can set this profile option at the site or user level. The profile is predefined with a default value of No at the site level. If the profile is set to Yes, these validations aren't performed. The checks for unique banks, branches, accounts, and the mandatory requirement of bank account number aren't affected by this profile.

Pakistan

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

Check Digit

  • Optional

IBAN

  • Optional, if entered, the following rules apply.

  • The modulus-97 rule is used to calculate the validity of the IBAN.

  • Length can't be more than 24 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed..

  • The first 2 characters are letters.

Palestine

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

Check Digit

  • Optional

IBAN

  • Optional, if entered, the following rules apply.

  • The modulus-97 rule is used to calculate the validity of the IBAN.

  • Length can't be more than 29 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

Poland

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

  • If entered, the length should be of 8 numeric characters.

Branch Number

  • Optional

  • If entered, the length should be of 8 numeric characters.

  • If the Bank Code and Branch Number are entered, then both values must match

Account Number

  • Mandatory

  • Length should be a maximum of 16 alphanumeric characters.

Check Digit

  • Optional

IBAN

  • Mandatory

  • If the IBAN isn't entered, a warning message is displayed: IBAN hasn't been entered. This bank account is defined in a country that requires IBAN for payment processing.

  • The modulus-97 rule is used to calculate the validity of the IBAN

  • Length should be 28 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Portugal

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Mandatory

  • Length should be of 4 numeric characters.

Branch Number

  • Mandatory

  • Length should be of 4 numeric characters.

Account Number

  • Mandatory

  • Length should be a maximum of 11 numeric characters.

Check Digit

  • Optional

  • Length should be of 2 numeric characters.

  • If entered, a check algorithm is applied on the Check Digit.

IBAN

  • Mandatory

  • If the IBAN isn't entered, a warning message is displayed: IBAN hasn't been entered. This bank account is defined in a country that requires IBAN for payment processing.

  • The modulus-97 rule is used to calculate the validity of the IBAN

  • Length should be 25 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Check Algorithm for Check Digit

  • A check digit's formed (CD1) from the Bank Code, Branch Number, and Account Number by concatenating the three numbers.

  • For example, using Bank Code 1234, Branch Number 5678, and Account Number 12345678901. Then CD1 is set as 1234567812345678901.

  • The Portuguese government provides the following factor table:

Digit Factor

1st

73

2nd

17

3rd

89

4th

38

5th

62

6th

45

7th

53

8th

15

9th

50

10th

5

11th

49

12th

34

13th

81

14th

76

15th

27

16th

90

17th

9

18th

30

19th

3

The nineteen digits of the created check digit (CD1) are multiplied by the associated factor. The multiple sum is then calculated by summing the totals.

Example using the value for CD1:

Digit Value Factor Result

1st

1

73

73

2nd

2

17

34

3rd

3

89

267

4th

4

38

152

5th

5

62

310

6th

6

45

270

7th

7

53

371

8th

8

15

120

9th

1

50

50

10th

2

5

10

11th

3

49

147

12th

4

34

136

13th

5

81

405

14th

6

76

456

15th

7

27

189

16th

8

90

720

17th

9

9

81

18th

0

30

0

19th

1

3

3

Total

N/A

N/A

3794

  • Divide the result by 97. 3794 / 97 = 39

  • Derive the remainder. 3794 - (39 * 97) = 11

  • CD1 is then derived by subtracting the remainder from 97. 97 - 11 = 86. So for this example CD1 = 86

  • If the calculated value for CD1 isn't the same as the user entered check digit, then the check digit fails the validation. In the given example, unless the user entered check digit's 86, the validation will fail.

Qatar

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

Check Digit

  • Optional

IBAN

  • Optional, if entered, the following rules apply.

  • The modulus-97 rule is used to calculate the validity of the IBAN.

  • Length can't be more than 29 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

Reunion

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

Check Digit

  • Optional

IBAN

  • Mandatory

  • If the IBAN isn't entered, a warning message is displayed: IBAN hasn't been entered. This bank account is defined in a country that requires IBAN for payment processing.

  • The modulus-97 rule is used to calculate the validity of the IBAN

  • Length can't be more than 34 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Romania

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

Check Digit

  • Optional

IBAN

  • Mandatory

  • If the IBAN isn't entered, a warning message is displayed: IBAN hasn't been entered. This bank account is defined in a country that requires IBAN for payment processing.

  • The modulus-97 rule is used to calculate the validity of the IBAN

  • Length should be 24 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Saint Barthelemy

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

Check Digit

  • Optional

IBAN

  • Mandatory

  • If the IBAN isn't entered, a warning message is displayed: IBAN hasn't been entered. This bank account is defined in a country that requires IBAN for payment processing.

  • The modulus-97 rule is used to calculate the validity of the IBAN

  • Length can't be more than 34 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Saint Lucia

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

Check Digit

  • Optional

IBAN

  • Optional, if entered, the following rules apply.

  • The modulus-97 rule is used to calculate the validity of the IBAN.

  • Length can't be more than 32 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

San Marino

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

Check Digit

  • Optional

IBAN

  • Mandatory

  • If the IBAN isn't entered, a warning message is displayed: IBAN hasn't been entered. This bank account is defined in a country that requires IBAN for payment processing.

  • The modulus-97 rule is used to calculate the validity of the IBAN.

  • Length can't be more than 27 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

Saint Martin (French Section)

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

Check Digit

  • Optional

IBAN

  • Mandatory

  • If the IBAN isn't entered, a warning message is displayed: IBAN hasn't been entered. This bank account is defined in a country that requires IBAN for payment processing.

  • The modulus-97 rule is used to calculate the validity of the IBAN

  • Length can't be more than 34 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Saint Pierre and Miquelon

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

Check Digit

  • Optional

IBAN

  • Mandatory

  • If the IBAN isn't entered, a warning message is displayed: IBAN hasn't been entered. This bank account is defined in a country that requires IBAN for payment processing.

  • The modulus-97 rule is used to calculate the validity of the IBAN

  • Length can't be more than 34 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Saudi Arabia

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

  • If entered, then the length should be a maximum of 4 characters

Branch Number

  • Optional

Account Number

  • Mandatory

  • Length should be a maximum of 25 characters.

Check Digit

  • Optional

IBAN

  • Optional, if entered the following rules apply.

  • The modulus-97 rule is used to calculate the validity of the IBAN

  • Length can't be more than 24 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

Senegal

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

Check Digit

  • Optional

IBAN

  • Optional, if entered, the following rules apply.

  • The modulus-97 rule is used to calculate the validity of the IBAN.

  • Length can't be more than 28 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

Serbia

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory.

Check Digit

  • Optional

IBAN

  • Optional, if entered, the following rules apply.

  • The modulus-97 rule is used to calculate the validity of the IBAN.

  • Length should be 22 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Serbia and Montenegro

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

Check Digit

  • Optional

IBAN

  • Mandatory

  • If the IBAN isn't entered, a warning message is displayed: IBAN hasn't been entered. This bank account is defined in a country that requires IBAN for payment processing.

  • The modulus-97 rule is used to calculate the validity of the IBAN

  • Length can't be more than 34 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Seychelles

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

Check Digit

  • Optional

IBAN

  • Optional, if entered, the following rules apply.

  • The modulus-97 rule is used to calculate the validity of the IBAN.

  • Length can't be more than 31 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

Singapore

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Mandatory

  • Length should be 4 numeric characters.

Branch Number

  • Mandatory

  • Length should be 3 numeric characters.

Account Number

  • Mandatory

Check Digit

  • Optional

IBAN

  • Optional, if entered, the rules following apply.

  • The modulus-97 rule is used to calculate the validity of the IBAN

  • Length can't be more than 34 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Slovakia

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

Check Digit

  • Optional

IBAN

  • Mandatory

  • If the IBAN isn't entered, a warning message is displayed: IBAN hasn't been entered. This bank account is defined in a country that requires IBAN for payment processing.

  • The modulus-97 rule is used to calculate the validity of the IBAN

  • Length can't be more than 24 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Slovenia

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

Check Digit

  • Optional

IBAN

  • Mandatory

  • If the IBAN isn't entered, a warning message is displayed: IBAN hasn't been entered. This bank account is defined in a country that requires IBAN for payment processing.

  • The modulus-97 rule is used to calculate the validity of the IBAN

  • Length can't be more than 19 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Spain

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Mandatory

  • Length should be a maximum of 4 numeric characters.

  • If the bank code is less than 4 digits, then it's converted to a 4 digit number by prefixing it with as many leading zeroes as is necessary.

Branch Number

  • Mandatory

  • Length should be a maximum of 4 numeric characters.

  • If the bank code is less than 4 digits, then it's converted to a 4 digit number by prefixing it with as many leading zeroes as is necessary.

Account Number

  • Mandatory

  • Length should be 10 numeric characters.

Check Digit

  • Optional

  • If entered, length should be a maximum of 2 numeric characters.

  • A check algorithm is applied on the Check Digit.

IBAN

  • Mandatory

  • If the IBAN isn't entered, a warning message is displayed: IBAN hasn't been entered. This bank account is defined in a country that requires IBAN for payment processing.

  • The modulus-97 rule is used to calculate the validity of the IBAN

  • Length should be 24 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Check Algorithm for Check Digit

Two check digits are calculated, CD1 from the Bank Code and Branch Number and CD2 from Account Number in the following manner; these are then used as the basis for the check digit validity test:

CD1

1. For the Bank Code, the Spanish government provides the following factor table:

Digit Factor

1st

4

2nd

8

3rd

5

4th

10

The four digits of the Bank Code are multiplied by the associated factor. The computed sum is then calculated by summing the totals.

Example using Bank Code '1234':

Multiply each digit with the given factor.

Digit Value Factor Result Digit Value Factor Result Digit Value Factor Result Digit Value Factor Result

1st

1

4

4

2nd

2

8

16

3rd

3

5

15

4th

4

10

40

Total

N/A

N/A

75

So the computed sum for this example is 75.

2. For the Branch Number, the Spanish government provides the following factor table:

Digit Factor

1st

9

2nd

7

3rd

3

4th

6

The four digits of the Branch Number are multiplied by the associated factor. The computed sum is then calculated by summing the totals.

Example using Branch Number '5678':

Multiply each digit with the given factor.

Digit Value Factor Result

1st

5

9

45

2nd

6

7

42

3rd

7

3

21

4th

8

6

48

Total

N/A

N/A

156

So the computed sum for this example is 156.

3. The computed sums from both the Bank Code and Branch Number calculations are then summed up. According to the example, it's 75 + 156 = 231.

4. Divide the result by 11.

231 / 11 = 21

5. Derive the remainder

231 - (11 * 21) = 0.

6.CD1 is then derived by subtracting the remainder from 11. If difference is 11, then CD1 is 0 and if difference is 10, then CD1 is 1 11 - 0 = 11. So for this example, CD1 = 11 = 0.

CD2

1. For the Account Number, the Spanish government provides the following factor table:

Digit Factor

1st

1

2nd

2

3rd

4

4th

8

5th

5

6th

10

7th

9

8th

7

9th

3

10th

6

The ten digits of the bank number are multiplied by the associated factor. The computed sum is then calculated by summing the totals.

Example using account number '1234567890':

Multiply each digit with the given factor.

Digit Value Factor Result

1st

1

1

1

2nd

2

2

4

3rd

3

4

12

4th

4

8

32

5th

5

5

25

6th

6

10

60

7th

7

9

63

8th

8

7

56

9th

9

3

27

10th

0

6

0

Total

N/A

N/A

280

So the computed sum for this example is 280.

2. Divide the result by 11

280 / 11 = 25

3. Derive the remainder.

280 - (11 * 25) = 5

4. CD2 is then derived by subtracting the remainder from 11. 11 - 5 = 6. So for this example CD2 = 6.

Check Digit Validity Test

The value in the user entered check digit field is compared to the calculated CD1 and CD2 using the following checks, if both of the checks are true, then the validation is unsuccessful.

Check Description

1

CD1 is compared to the first digit of the entered check digit field.

2

CD2 is compared to the second digit of the entered check digit field.

Example of the test using the previously calculated CD1 and CD2:

Where CD1 = 0 and CD2 = 6 and suppose the user entered Check Digit Value is '05'. As CD2 does not match, the check digit's invalid.

Sweden

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

  • If entered, then the length should be between 4 to 5 numeric characters.

Branch Number

  • Optional

  • If entered, then the length should be between 4 to 5 numeric characters.

  • If the Bank Code and Branch Number are entered, then both values must match.

Account Number

  • Mandatory

  • Length should be a maximum of 16 numeric characters.

Check Digit

  • Optional

  • Length should be a single numeric character.

IBAN

  • Mandatory

  • If the IBAN isn't entered, a warning message is displayed: IBAN hasn't been entered. This bank account is defined in a country that requires IBAN for payment processing.

  • The modulus-97 rule is used to calculate the validity of the IBAN

  • Length should be 24 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Switzerland

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

  • If entered, then the length should be between 3 to 5 numeric characters.

Branch Number

  • Optional

  • If entered, then the length should be between 3 to 9 numeric characters.

Account Number

  • Mandatory

  • Length should be a maximum of 17 numeric characters.

Check Digit

  • Optional

Account Type

  • Optional

IBAN

  • Mandatory

  • If the IBAN isn't entered, a warning message is displayed: IBAN hasn't been entered. This bank account is defined in a country that requires IBAN for payment processing.

  • The modulus-97 rule is used to calculate the validity of the IBAN

  • Length should be 21 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

The Former Yugoslav Republic of Macedonia

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

Check Digit

  • Optional

IBAN

  • Mandatory

  • If the IBAN isn't entered, a warning message is displayed: IBAN hasn't been entered. This bank account is defined in a country that requires IBAN for payment processing.

  • The modulus-97 rule is used to calculate the validity of the IBAN

  • Length should be 19 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Tunisia

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory.

Check Digit

  • Optional

IBAN

  • Optional, if entered, the following rules apply.

  • The modulus-97 rule is used to calculate the validity of the IBAN.

  • Length should be 22 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Turkey

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory.

Check Digit

  • Optional

IBAN

  • Mandatory

  • If the IBAN isn't entered, a warning message is displayed, IBAN hasn't been entered. This bank account is defined in a country that requires IBAN for payment processing.

  • The modulus-97 rule is used to calculate the validity of the IBAN.

  • Length should be 26 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Ukraine

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

Branch Number

  • Optional

Account Number

  • Mandatory

Check Digit

  • Optional

IBAN

  • Optional, if entered, the following rules apply.

  • The modulus-97 rule is used to calculate the validity of the IBAN.

  • Length can't be more than 29 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

United Arab Emirates

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

  • If entered, the length should be a maximum of 4 characters.

Branch Number

  • Optional

Account Number

  • Mandatory

  • Length should be a maximum of 21 characters.

Check Digit

  • Optional

IBAN

  • Optional, if entered, the following rules apply.

  • The modulus-97 rule is used to calculate the validity of the IBAN.

  • Length can't be more than 23 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

United Kingdom

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional

  • If entered, then the length should be 6 numeric characters.

Branch Number

  • Mandatory

  • it's unique within the country.

  • Length should be a maximum of 6 numeric characters.

  • If the length is less than 6, then it's converted to a 6 digit number by prefixing it with as many leading zeroes as is necessary.

  • This field is labeled as Sort Code.

Account Number

  • Mandatory

  • Length should be between 7 to 8 characters.

  • If the length is 7 characters, it's converted to 8 characters, by adding a zero as the lead or first character.

Check Digit

  • Optional

Secondary Account Reference

  • Optional

  • If entered, length should be a maximum of 18 characters.

  • This field is labeled as Building Society Roll Number.

IBAN

  • Mandatory

  • If the IBAN isn't entered, a warning message is displayed, IBAN hasn't been entered. This bank account is defined in a country that requires IBAN for payment processing.

  • The modulus-97 rule is used to calculate the validity of the IBAN.

  • Length should be 22 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

United States

Validation Rules

The fields are checked for validity by adopting the following rules:

Field Rule

Bank Code

  • Optional.

Branch Number

  • This field is labeled as Routing Transit Number.

  • Length should be a maximum of 9 numeric characters.

  • If the length is less than 9, then it's converted to a 9 digit number by prefixing it with as many leading zeroes as is necessary.

  • Note that on padding the number to 9 digits, the first 8 digits can't be all zeroes.

  • For example, 001 and 000007 are invalid Routing Transit Numbers because on padding to 9 digits, they become - 000000001, 000000007, and thus having 8 leading zeroes.

  • A check algorithm is applied on the Routing Transit Number.

Account Number

  • Mandatory

Check Digit

  • Optional

IBAN

  • Optional, if entered, the following rules apply.

  • The modulus-97 rule is used to calculate the validity of the IBAN.

  • Length can't be more than 34 characters. Spaces are removed from the left and right. Spaces in the middle aren't removed.

  • The first 2 characters are letters.

  • The third and fourth characters are numbers.

Check Algorithm for Routing Transit Number

  1. The ninth digit of the Number field is used to represent the Check Digit.

  2. A calculated Check Digit's computed from the remaining 8 digits using Modulus 10 algorithm.

  3. Multiply each digit in the Routing Transit Number by a weighting factor. The weighting factors for each digit areas given in the following table:

Digit 1st 2nd 3rd 4th 5th 6th 7th 8th

Factor

3

7

1

3

7

1

3

7

  • The digits of the Routing Transit Number are multiplied by the associated factor. The computed sum is then calculated by summing the totals.

  • Subtract the sum from the next highest multiple of 10. The result is the calculated Check Digit. This should be the same as the 9th digit of the Branch Number or Routing Transit Number; otherwise the Branch Number or Routing Transit Number is invalid.

For Example:

Routing Number 0 7 6 4 0 1 2 5 Total

Multiply by

3

7

1

3

7

1

3

7

N/A

Sum

0

49

6

12

0

1

6

35

= 109

So the Check Digit = 1 (110 minus 109).

In this example, the Routing Transit Number 076401251 passes validation.