Redwood: Validate Supplier Bank Accounts

You can now validate supplier bank accounts in supplier registration as well as profile change management with a third-party service to ensure the bank account is valid and that the owner of the bank account matches the supplier. Validating supplier bank accounts 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.

This release expands the bank account validation feature to support supplier profile change management. Supplier bank account changes submitted for approval can now be validated with the results presented in the supplier profile change request approval notification. The validation is performed for new bank accounts as well as when existing bank accounts are updated and is performed using the same seamless integration to JP Morgan's Bank Account Validation Service (AVS) that validates bank accounts submitted through supplier registration. The AVS service checks the following:

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

Bank Account Validation Status Displayed on Supplier Profile Change Request Approval Notification

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 supplier profile change 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.

In summary, AVS ensures accurate supplier bank account information which is critical for 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.

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.
   • Log a service request through My Oracle Support to request the promo code.
   • Enable the embedded banking promo code, refer to this document for more details: Use Promotion Codes.
   • 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: Use and Configure Redwood-Style Supplier Profile Change Request Approval Notifications as the bank account validation outcome is shown to approvers on this new Redwood notification which is also available as of release update 25D.
3. Opt in to the Procurement feature: Redwood: Validate Supplier Bank Accounts and feature choice Profile change request. The feature works for external as well as internal supplier profile change requests.
4. Opt in to the Procurement feature: Redwood: Enable Suppliers to Manage Company Profile. For more details, refer to this document: Redwood: Enable Suppliers to Manage Company Profile.
5. Opt in to the Procurement feature: Approve Internal Changes on Supplier Profile and feature choice Bank accounts.

Tips And Considerations

• Bank account validation is performed on profile change requests that contain new bank accounts and updated bank accounts (irrespective of the prior validation status).
• Profile change requests submitted by external supplier users (via Supplier Portal) as well as internal users are supported.
  • Recommend deploying the new Redwood Supplier Portal for suppliers to maintain their company profile, released in 25C.
• The bank account validation service considers the supplier's name on the profile change request as an owner for the bank account owner validity check.
• The bank account validation doesn't support joint ownership validations, i.e. if a bank account has more than one account owner, only the supplier is considered as an owner for validation.
• 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.
• The validation status for new or changed bank account is not displayed to the requester submitting a profile change request, it's only displayed to the approver reviewing the profile change request.
• The feature now has two opt-in choices, registration request and profile change request. If you've previously enabled this feature in update 25C, only the registration request option is enabled and you need to enable the profile change request option separately.
• JPMorgan's AVS supports validation of:
  • Supplier bank accounts held with any bank, the service is not limited to supplier bank accounts with JPMorgan.
  • 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.

Key Resources

• To know more on the bank account validation in supplier registration, refer to the Redwood: Validate Supplier Bank Accounts.
• To know more on the Redwood manage profile in Supplier Portal, refer to the Redwood: Enable Suppliers to Manage Company Profile.
• To know more on the Redwood supplier profile change request approval notification, refer to the Redwood: Use and Configure Redwood-Style Supplier Profile Change Request Approval Notifications.
• 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).

Access Requirements

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

• BI Author Role (BIAuthor)

Above duty role was available prior to this update.