Direct Deposit Configuration
Direct deposit refers to the electronic transfer of an employee's net pay directly into the accounts designated by the employee. For employees who have requested direct deposit payments, the application generates a direct deposit file for Canada.
The direct deposit file contains the details of the net pay distribution for each employee deposit. Financial institutions use the details in the file for processing and distributing the payments.
The CPA Standard 005 electronic file format is the format that's used for direct deposit transactions.
Before you generate the direct deposit file, complete these tasks:
-
Set up the financial institutions
-
Set up employer account information and organization payment methods
-
Set up employee account information
Direct Deposit Encoding Option
Generate the direct deposit interface file using one of these encoding formats. This allows the customer to select the encoding format for the generated file as required by the bank.
-
UTF-8 (Default value)
-
ANSI
The ANSI format is required to correctly convert names containing accents. If you don't have employee names created with accents, use the default format of UTF-8. This encoding isn't required for international payment transfers.e
You can generate the direct deposit interface file using a custom delivery option where you can define your own report category and delivery option. For example, use this option if you want to send the direct deposit interface file directly to the bank using SFTP (Secure File Transmission Protocol).
-
Add a Custom Report Category
-
Create Custom Folder and Templatee
-
Add Report Category to the Parameter Lookup
To Add a Custom Report Category
-
Search and select the Extract Definitions task under Data Exchange in My Client Groups on the Home page.
-
Click Show Filters.
-
Enter the following to search:
-
Name: Paymemts
-
Legislative Data Group: Enter a Canadian LDG.
-
-
Click Search.
-
Click Advanced Edit.
-
In the Hierarchy section, select Extract Delivery Options.
-
Under Extract Delivery Options, click Add.
-
Enter a Delivery Option Name, Report, select Output Type, (for example /Custom/Human Capital Management/Payroll/Payment Distribution/EFT Report), Template Name, Output Name, and Delivery Type.
-
Click Save.
-
Under the Report Categories section, click Add.
-
Enter the Short Name and Category Name.
-
Click Save.
-
Under the Additional Details section, click Add.
-
Search for and select the newly created custom Extract Delivery Mode.
-
Click Save and Close.
Create Custom Folder and Template
-
Create a new folder in this location, /Custom/Human Capital Management/Payroll/Payment Distribution/EFT Report, with the same Short Name you defined in the step above.
-
Add a new template under /Custom/Human Capital Management/Payroll/Payment Distribution/EFT Report.xdo.
-
Under the folder, /Custom/Human Capital Management/Payroll/Payment Distribution/, select EFT Report.
-
Click Edit>Add New Layout>Upload or Generate Layout>Upload.
Note: The layout name should be the newly created template and noted in extract definitions.
Add Report Category to the Parameter Lookup
To add the report category to the Encoding Format parameter for the Generate Direct Deposit Payments process:
-
Navigate to Setup and Maintenance.
-
Search for and access Manage Common Lookups.
-
Search for Lookup Type, ORA_HRX_CA_DIRECT_DEPOSIT_RC.
-
Under the Lookup Codes section, click Add.
-
Add the lookup code.
Note: The lookup code should be the newly added report category in previous step (for example, RLH_STD_EFT). The meaning entered here is displayed in the Encoding Format parameter. -
Click Save and Close.
Setting Up Financial Institutions
Use the Manage Banks task in FSM to set up the financial institutions, branches, and account information for the organization. Before you enter the employees direct deposit account information, you must set up the financial institutions and branches that your employees use.
When defining the bank account information, Oracle recommends that you enter the transit number in the Account Name field. The transit number is required for recalls and it appears on the Core Payment Register Report.
Set Up Employer Account Information and Organization Payment Method
Use the Organization Payment Methods task to set up employer account information and organization payment methods. On the Create Organization Payment Method page, enter this information pertaining to your financial institution.
Field |
Description |
---|---|
Payment Type |
Select Direct Deposit, the name for electronic transfer of funds directly into employee designated accounts. |
Financial Institution |
Name of financial institution sending or receiving the direct deposit orders. |
Destination Data Centre Code |
A unique six-digit code issued by the financial institution for identifying the destination data institution to which the file is delivered. |
Originator ID |
Ten-digit code issued by the financial institution. It identifies the originator of the transaction. |
Originator Long Name |
The long name of the originator of the transaction. It is a name agreed upon with your financial institution. |
Originator Sundry Information |
Used by the originator to further identify the transaction to the payee or payer. |
Originator Short Name |
Short name of the originator of the transaction. It is a name agreed upon with your financial institution. |
Balancing entries |
If you select Yes, the balance debits offset the credits in the direct deposit. |
Transaction Limit |
Maximum amount of money allowed on a single direct deposit transaction. |
Payment Limit |
Maximum amount of money allowed on a single direct deposit file. |
Transaction Type |
Used by the originator to identify the type of payment, and it enables the processing Direct Clearer to further identify the payment to the customer. The CPA value defaults to '200', which identifies the transaction as a payroll deposit as outlined in the CPA Standard 005 direct deposit specifications. However, you can override this value at runtime by entering a different value in the Override Transaction Type parameter of the Generate Direct Deposit flow. |
Return Institution ID |
Routing information of the institution branch or office to which
items are returned. It is a nine-digit number agreed upon with
your financial institution. The format is |
Return Account Number |
Account number for returns. |
Set Up Employee Account Information
You must create a payroll definition that uses the Direct Deposit payment method and assign all employees to this payroll. Set up the direct deposit account information for each participating employee:
-
If you haven't enabled employee self-service, use the Personal Payment Methods task in Person Management area to enter employee's direct deposit information.
-
If you have enabled employee self-service, individual employees can provide their direct deposit account information using the Personal Payment Methods task.
The first account you enter should be the default account. If you define a second personal payment method account, you can specify the deposit amount as percent of the total amount or a flat amount.
After you have set up the employer's account information and the employee's personal payment methods, the processing of direct deposits can occur. Prior to running the direct deposit process, you must complete the following three tasks:
-
Calculate Payroll
-
Calculate Prepayments
-
Archive Periodic Payroll Results
International Payments
When you run the Generate Direct Deposit Payment process for an international payment transfer, an XML file is automatically generated that contains the account and payment details of the international transfer. Customers can access the XML file on the BI server and use the XML to create an user-defined interface to pay Canadian employees to a bank outside of Canada. The employees are paid in a currency other than Canadian Dollars. The Generate Direct Deposit Payment process doesn't create any other output for this type of payment method.
The International Transfer payment type enables you to create an organization payment method for an international transfer and configure personal payment methods for bank accounts outside of Canada.
The following contain international transfer payment details:
-
Payment archive
-
Statement of Earnings (SOE)
-
Prepayments
-
Payslip
-
Payment Register