How You Set Up Bank Charges

Bank charges are the fees that a bank charges you for transferring funds from your disbursement bank account to the bank accounts of your suppliers.

You negotiate with your supplier whether to deduct the bank charges from an invoice payment and you pay the bank at one of these rates:

• Standard

• Negotiated

If you set up bank charges, you can't take a discount on a payment or deduct bank charges from payments that you create using either:

• Create Payment page

• Pay in Full action on the Create and Edit Invoice pages

Setting up bank charges includes defining bank charges and setting the bank deduction type for payment options or a supplier site.

Define Bank Charges

In the Setup and Maintenance work area:

1. Go to the following:

   • Offering: Financials

   • Functional Area: Payables

   • Task: Manage Bank Charges

2. Define the bank charges on the Create and Edit Bank Charge pages.

Set the Bank Deduction Type for Payment Options

In the Setup and Maintenance work area:

1. Go to the following:

   • Offering: Financials

   • Functional Area: Payables

   • Task: Manage Payment Options

2. Set the business unit scope for the Manage Payment Options task to open the Manage Payment Options page.

3. Select the Bank Charge Deduction Type option to use when the deduction type for a supplier site is set to Default from Payables Options.

Set the Bank Deduction Type for a Supplier Site

In the Suppliers work area:

1. Click Manage Suppliers.

2. Search for the supplier and open the Edit Supplier Site page.

3. Set the Bank Charge Deduction Type option on the Invoicing tab.