Redwood: Validate Supplier Bank Accounts

Accurate bank account information is critical to successful procurement operations. Fraudulent bank accounts lead to payment fraud with monetary losses and increased costs to correct, track, and attempt funds recovery. Even legitimate suppliers that incorrectly enter bank account information can cause expensive transaction errors. 

You can now validate supplier bank accounts in supplier registration with a third-party service to ensure the bank account is valid and that the owner of the bank account matches the supplier. Validating the supplier bank accounts in supplier registration will reduce the risk of payment fraud, improve transaction efficiency, reduce approval cycle time, and lower operational costs associated with invalid or incorrect bank account information.

In this feature, supplier bank accounts are validated through a seamless integration to JP Morgan's Bank Account Validation Service (AVS) after the supplier registration is submitted with the results presented in the registration approval notification. The AVS service checks the following:

• Bank account validity to ensure it exists and is valid, and
• Bank account owner validity to confirm that the bank account belongs to the supplier being registered.

The validation status includes the validation outcome of both the bank account and the bank account owner. Based on both outcomes, a final status and supporting message is displayed to the approvers. The bank account validation status is saved and shown on the supplier profile after the registration request is approved. 

The bank account validation statuses include:

• Verified: Confirms that the bank account is open, valid, and the supplier is the account owner.
• Failed: Confirms either the bank account is invalid or closed for payment transactions, or the bank account is open and valid, but supplier isn't the account owner.
• Inconclusive: Indicates the bank account isn't found and can't be validated, or the account owner can't be validated.

Bank Account Validation Status Displayed on Supplier Registration Approval Notification

Here's the demo of these capabilities:

Steps to Enable

Use the Opt In UI to enable this feature. For instructions, refer to the Optional Uptake of New Features section of this document.

Offering: Procurement

This feature is available through a paid subscription with JPMorgan. It requires a JPMorgan bank account for billing purposes. The account must have been opened with any JPMorgan branch in United States. You can either use your current account or open a new bank account with JPMorgan.

1. Enable the embedded banking account validation service in FSM.
   1. Log a service request through My Oracle Support to request the promo code.
   2. Enable the embedded banking promo code, refer to this document for more details: Use Promotion Codes.
   3. In the Manage Embedded Banking Configurations setup task. enable the Bank Account Validation Service option. This step will kick off the process to setup the link between JPM and Oracle.
2. Opt in to the Procurement feature: Redwood: Next Generation User Experience for Supplier Registration. Bank account validation isn't available in classic supplier registration.
3. Opt in to the Procurement feature: Redwood: Configure Supplier Registration Approval Notification Using Oracle Analytics Publisher as the bank account validation outcome is shown to approvers on the Redwood supplier registration approval notification. If the feature is already enabled, but you've personalized the notification by modifying the RTF template, then you need to download the latest RTF template, supplier registration approval notification report, and redo the changes.
4. Opt in to the Procurement feature: Redwood: Validate Supplier Bank Accounts. The feature works for external as well as internal supplier registrations.

Tips And Considerations

• The bank accounts are revalidated when requesters resubmit registration requests returned by approvers, ensuring approvers have the latest validation status in case the bank accounts are changed.
• The bank account validation status is informational only and doesn't prevent payment processing to the supplier bank account. Approvers should take appropriate actions when reviewing bank accounts that didn't pass verification in supplier registration.
• The bank account validation service is planned for supplier profile change requests in a future update.
• JPMorgan's AVS supports validation of:
  • Supplier bank accounts based in the United States. When the bank account validation is requested for any other country, a message is displayed indicating that the validation wasn't performed.
  • Supplier bank acconts with JPMorgan as well as banks other than JPMorgan.

Key Resources

• To know more on the Redwood supplier registration approval notification, refer to the Redwood: Configure Supplier Registration Approval Notification Using Oracle Analytics Publisher topic.
• To know more on the Embedded Banking, refer to the Getting Started with Your Financials Implementation (Embedded Banking Services with J.P. Morgan).
• To know more on the supplier bank account setup, refer to the Implementing Payables Invoice to Pay (Set Up a Supplier's Bank Account).
• This feature is based on the Idea 622962 from the Idea Labs on Oracle Cloud Customer Connect.

Access Requirements

Users who are assigned a configured job role that contains these privileges can view the bank accounts along with their validation statuses on registration request from the notification:

• View Supplier Registration Request Privilege (POZ_VIEW_SUPPLIER_REGISTRATION_REQUEST_PRIV)
• View Supplier Registration Bank Account Privilege (POZ_VIEW_SUPPLIER_REGISTRATION_BANK_ACCOUNT_PRIV)

Users who are assigned a configured job role that contains this duty role can configure the Redwood supplier registration approval notification with Oracle Analytics Publisher:

• BI Author Role (BIAuthor)

Above privileges and duty role were available prior to this update.