Setting Up Banks
This chapter provides an overview of PeopleSoft bank setup and discusseshow to:
Define general bank setup.
Define bank information.
Understanding Bank Setup
Before you can move funds in and out of PeopleSoft Financials, you mustdefine banks and bank accounts in the system. You define as many banks andbank accounts as you need to manage your funds. For each bank, you can alsodefine various processing defaults.
In PeopleSoft, a bank is any financial institution with which your organizationmaintains a banking relationship. A counterparty is a bank that has a tradingrelationship with your organization. You must set up bank information beforeyou can define counterparty information.
When you define bank information, you define a hierarchy of information:first, the general bank setup; second, the bank detail information (generalinformation such as bank and branch information, and processing informationsuch as payment methods for bank accounts). Once you have established thiscore banking data, you can then define settlement instructions (predefinedbank account specifics for handling cash inflows and outflows), account types(external, internal, or netting) and additional banking functionality. Finally,you define your counterparty information.
PeopleSoft bank functionality is available to PeopleSoft Cash Management,Deal Management, Risk Management, Expenses, Payables, Receivables, and GeneralLedger. Establishing your banks, bank accounts, and counterparties involvesseveral steps that vary depending on which applications you have installed.Your banks supply information such as account, bank ID, branch ID, and otherDepository Financial Institution (DFI) numbers. Other information dependson how you and your customers, vendors, and counterparties agree to set uppayment, receipt, and settlement procedures.
See Also
Setting Up Counterparties
Understanding IBAN
The International Bank Account Number (IBAN) format was developed byEuropean Committee for Banking Standards (ECBS) and the International Organizationfor Standardization (ISO) to streamline the straight-through processing—theautomatic debiting of the ordering customer and crediting the beneficiaryaccount—of cross-border payments. SEPA Usage rules require the use ofBIC and IBAN codes to uniquely identify the banks and bank accounts of thecreditor and debtor in all Euro cross-border payments. Besides improvingthe efficiency of processing cross-border payments, IBAN also makes it easierto validate foreign account numbers. The IBAN format is an internationallyagreed upon standard that is defined in ISO 13616.
The IBAN varies in length depending on the country, but no IBAN is greaterin length than 34 alphanumeric characters. The IBAN is composed of:
Country code
The first two characters of the IBAN are the letters that identify thecountry as specified in ISO 3166.
IBAN check digits
Two numeric digits that are used in the algorithm designed to formallyvalidate the IBAN.
Basic Bank Account Number (BBAN)
The identifier used by financial institutions in individual countriesas part of National Account Numbering Schemes that uniquely identifies anaccount of a customer at a financial institution. Also known as the DomesticBank Account Number. Included in the BBAN are the:
BIC/SWIFT code. (bank identifier code/society for worldinternational financial telecommunication)
BIC, also know as the SWIFT code, identifies the bank and possibly thebank branch. To enable bank compliance, you must enter a BIC code for yourbank. The system validates the formatting of the code, but not the valueof the BIC.
Account number.
The customer's bank account number.
Bank check digit.
The one or two digits that are used in the formal validation of thedomestic bank account.
PeopleSoft IBAN Processing
PeopleSoft provides sample IBAN formats for 38 countries. These formatscan be viewed on the IBAN Formats page. The IBAN can be displayed on variousPeopleSoft Financial application pages. These pages afford the user the abilityto enter the IBAN manually or have the application generate it after the userenters the IBAN check digit. The method used can be done on a country-by-countrybasis that is determined by the IBAN Enterable field located on the IBAN Formatspage.
Defining General Bank Setup
To define rating agencies and credit ratings, use the Credit Ratings/RatingAgency component (CREDIT_RTG_TBL_GBL).
To define bank identification qualifiers, use the Bank ID Qualifierscomponent (BANK_ID_QUALS_GBL).
To define payment forms, use the Payment Forms component (PYMNT_FORM_PYMNT_GBL).
To define IBAN formats, use the IBAN Formats component (IBAN_FORMAT_GBL).
Before you begin to define your banks, you must define the supportingdata.
This section discusses how to establish:
Credit ratings.
Bank ID qualifiers.
IBAN formats.
Payment forms.
Payment sort fields.
Pages Used to Define General Bank Setup
Page Name | Definition Name | Navigation | Usage |
Credit Ratings/Rating Agency | CREDIT_RTG_TBL | Setup Financials/Supply Chain, Product Related, Treasury,Credit Ratings/Rating Agency | Define rating agencies and their associated credit ratings. |
Bank ID Qualifiers | BNK_ID_QUAL_PNL | Banking, Banks and Branches, Bank ID Qualifiers | View the ID qualifiers that the system uses to edit bank values. |
IBAN Formats | IBAN_FORMAT_TBL | Banking, Banks and Branches, IBAN Formats | View IBAN formats and generate sample IBANs. |
Form Information | PYMNT_FORM | Banking, Banks and Branches, Payment Forms, Form Information | Enter attributes related to your forms of payment. |
Sort Fields | PYMNT_FORM_SORT | Banking, Banks and Branches, Payment Forms, Sort Fields | Select the grouping of fields used to sort your forms of payment. |
Establishing Credit Ratings
Access the Credit Ratings/Rating Agency page (Setup Financials/SupplyChain, Product Related, Treasury, Credit Ratings/Rating Agency).
Value | Displays the value by which to rank the ratings in ascending order. 1 isthe highest rating. This value assigns a numeric equivalent to an alphanumericrating so that you can implement any processes or credit reports needed foryour organization. |
Rating | Displays the actual alphanumeric rating that the rating agency assigns. |
Establishing Bank ID Qualifiers
Access the Bank ID Qualifiers page (Banking, Banks and Branches,Bank ID Qualifiers).
PeopleSoft delivers predefined bank ID qualifiers, which you shouldtypically not modify.
Bank ID Qualifier | Displays the country-specific numeric value for a bank. This value controlshow the bank and counterparty pages edit and display bank information. Thisinformation drives bank account edits, which can vary by country for eachbank type. In some cases, a country may have more than one ID. Each bank ID qualifier indicates a specific type of bank with specificidentifying information. For example, when the system encounters a bank IDqualifier of 001 (indicating a U.S. bank), thesystem validates that you entered a valid check digit for an ABA transit routingnumber for the bank qualifier. Note. If you add a new bank ID qualifier, you must writePeopleCode to match the new value. This code appears in the record PeopleCodefor FUNCLIB_LCINTFC.BANK_ID_QUAL in the FieldFormula event. We suggest thatyou make this page a display-only page or use PeopleTools security to limitaccess to system administrators only. |
This table describes the system-delivered data.
Note. Qualifiers marked with (no field validation) haveno rule validation. If you want the system to automatically perform rule validationroutines, you must write the appropriate PeopleCode. For more information,refer to the European Committee for Banking Standards website at http://www.ecbs.org.You can access various countries' bank account numbering conventions and specificationsat http://www.ecbs.org/tr201country.htm.
Bank ID Qualifier | Bank ID (Defining Banks) | Bank Account Number (Bank Accounts) | Branch | Check Digit |
001 U.S. Bank | 9-digit transit routing number. Exactly 9 numerics with check digitcalculation. | NA | NA | NA |
002 Canadian Bank | Exactly 4 numerics. | Between 7 and 12 numerics. | Branch routing number Exactly 5 numerics. | NA |
003 Australian Bank | Exactly 3 numerics. | Max 9 numerics. | Exactly 3 numerics. | NA |
005 Great Britain Bank | Exactly 6 numerics. (Sort Code) | Max 10 numerics. | NA | NA |
006 Spanish Bank | Exactly 4 numerics. | Exactly 10 numerics. | Exactly 4 numerics. | Exactly 2 digits with check digit algorithm. |
007 Netherlands Bank | NA* | Exactly 10 numerics with modulus 11 check. | NA | NA |
008 Netherlands Giro | NA* | Max 7 numerics. | NA | NA |
009 French bank | Exactly 5 numerics. | Max 11 characters. | Exactly 5 numerics. | Check digit algorithm. |
010 German Bank | Exactly 8 numerics. | Max 10 numerics. | NA | NA |
011 Great Britain Building Society | Exactly 6 numerics. (Sort Code) | Max 10 numerics. | NA | NA |
012 Swiss Bank | Between 3 and 5 digits. | Max 16 characters. | NA | NA |
013 Belgian Bank | Exactly 3 numerics. | Max 7 numerics. | NA | 2 numerics with 97 modulus check. |
014 Japan Bank | Exactly 4 numerics. | Max 7 numerics. | Exactly 3 numerics. | NA |
015 Norwegian Bank (no field validation) | NA | NA | NA | NA |
016 Italian Bank | Exactly 5 numerics. | Max 12 alphanumerics. | Exactly 5 numerics. | 1 alpha with check digit algorithm. |
020 Swiss PPT(no field validation) | NA | NA | NA | NA |
See Also
PeopleTools PeopleBook: Security Administration, "Workingwith Permission Lists"
Defining IBAN Formats
Access the IBAN Formats page (Banking, Banks and Branches,IBAN Formats).
This page displays the formatted components of the International BankAccount Number (IBAN) based on the three-character, European country codeselected in the first column. The IBAN is composed of a country code, IBANcheck digits, and the Basic Bank Account Number (BBAN)—all the informationneeded to route a payment through any national clearinghouse. PeopleSoft supportsand provides sample data for 38 countries.
Note. Because the two-character, country code and IBAN checkdigits are always the first four characters of an IBAN, it is not necessaryto include columns defining their position and length on this page.
Country | Select the three-letter country code for a specific European country. |
IBAN Enterable | This box determines how the IBAN is entered on various PeopleSoft Financialsapplication pages. If Selected, the user enters the IBAN manually. If leftunchecked, the user enters a two-character, IBAN, check digit and clicks aView IBAN button to have the system generate it. Note. Previous to PeopleSoft Enterprise 9 Financials, IBANwas supported only for Belgium, France, Germany, Ireland, Italy, Netherlands,Spain, Switzerland, and the United Kingdom, and only by using the check-digitentry method. For those nine countries, the default setting for the IBAN Enterablefield is unchecked. Any of these countries can be configured to support enteringthe IBAN manually by selecting this box. |
Bank ID Pad, DFIID Pad, Branch ID Pad, and Account Pad | If checked, leading zeroes will be prefixed to the ID value to extendit to its maximum length. |
Bank ID Start | Enter where the first alphanumeric character of the bank identificationvalue will appear in the IBAN. |
Bank ID Length | Enter the number of characters making up the bank identification value. |
DFI Start | Enter where the first alphanumeric character of the DFI code will appearin the IBAN. The DFI is a bank identifier that may be included in the IBANID when the DFI Qualifier is set to SWIFT on bank-account related pages. Forexample, the Beneficiary Bank page. |
DFI Length | Enter the number of characters making up the DFI code. |
Branch ID Start | Enter where the first alphanumeric character of the branch ID code willappear in the IBAN. |
Branch ID Length | Enter the number of characters making up the branch ID code. |
Account Start | Enter where the first alphanumeric character of the bank account willappear in the IBAN. |
Account Length | Enter the number of characters making up the bank account. |
Check Digit Start | Enter where the first alphanumeric character of the bank check digitwill appear in the IBAN. Note. This is the check digit used in the formal validationof the domestic bank account, not the IBAN check digit. |
Check Digit Length | Enter the number of characters making up the bank check digit. |
IBAN Format Tester
Select a country code and click Format to generate a sample IBAN forany of the 38 PeopleSoft-supported countries.
Note. PeopleSoft is not responsible for the validity ofIBANs manually keyed in any of the bank-account related pages. The IBAN shouldbe provided by a financial institution.
See Defining External Accounts Information.
See Defining Settlement Instructions.
See Specifying Destination Information.
See Maintaining General Customer Information.
See Defining Accounting Data for PeopleSoft Expenses.
Establishing Payment Forms
Access the Form Information page (Banking, Banks and Branches,Payment Forms, Form Information).
For the form ID that you select, the system displays a payment formimage in the Preview group box.
Form Type | Indicates whether the payment prints on check stock or is an electronicfile. Select one of these options: System numbered form: The system generatescheck numbers to print on the payment forms. Pre-numbered form: The check stock has preprintedcheck numbers. The system does not generate check numbers, but keeps trackof the payment references and can warn you of any discontinuity in referencenumbers. ASCII file: EFT or positive payment files. Remittance Advice only: Wire transfers (throughPay Cycle Manager) and letters of credit. |
Form Alignment Count | Aligns the printer head with the first row of the form so that checksand advices print correctly. You use this field only with system-numberedforms. |
Advice Location | Select where the payment advice prints. Options are: Same report as check: Below or above thecheck on the same form. Separate advice report: Separate job fromthe check. You must load two different forms: one for the checks and one forthe advices. No advice: No advice lines. |
Overflow Location | Select where information prints, if it does not fit on one page. Optionsare: Same report as check: If more advice linesare required than the number of lines on the check form, the system uses asecond check form for advice lines and voids the check. Separate advice report: The system usesa separate advice form for overflow. You must load two different forms: onefor the checks and one for the advices. The system creates two separate reports. No advice report: No advice lines. |
Advice Lines | Displays the total number of lines that print on your advice. Enterthe number of lines available for the advice. This differs depending on whetherthe advice is on the same report as the check or on a separate report. Theinformation that you assign must fit on the Crystal check space. |
Advice Layout | Displays where the check and advice are positioned on the printed page.The Crystal report determines the layout, so this field is only informational.Match the description to how you define the Crystal report. Options are: Check over stub: Positions the check overthe advice. Stub over check: Positions the advice overthe check. Full page: Sends the advice lines to a separatepage from the check and a separate file. |
Establishing Payment Sort Fields
Access the Sort Fields page (Banking, Banks and Branches,Payment Forms, Sort Fields).
Select the fields that you want to use to sort your check output. Entersequence numbers for sorting priority.
Defining Bank Information
To define bank information, use the following components:
Bank Branch Information component (BANK_BRANCHPNL_GBL).
Use the TR_BANK_BRANCH_CI component interface to load data into theBank Branch Information tables.
Contact Information component (CONTACT_INFO_GBL).
Use the CONTACT component interface to load data into the Contact Informationtables.
Settlement Instruction component (SETTLEMENT_INSTRUC_GBL).
Use the TR_SETTLEMENT_INSTRUCTIONS_CI component interface to load datainto the Settlement Instruction tables.
This section discusses how to:
Define bank information.
Define bank addresses.
Set up electronic statements.
Define bank branches.
(Optional) Define bank branch addresses.
(Optional) Define branch contacts.
Define beneficiary bank information.
(Optional) Define beneficiary bank EFT options.
Define beneficiary bank addresses.
Define financial contacts.
(Optional) Define financial contact addresses.
See Also
Working with VAT
Pages Used to Define Bank Information
Page Name | Definition Name | Navigation | Usage |
Bank Information | BANK_PNL1 | Banking, Banks and Branches, Bank Information | Define each bank and its general characteristics. |
Address Information | BANK_ADDR_PNL | Click Address Information on the BankInformation page. | Capture the address and phone information for the bank. |
Bank Contact Notes | BANK_NOTES_SP | Click Notes on the Bank Informationpage. | Enter miscellaneous notes for the bank. |
VAT Defaults Setup (value-added tax defaultssetup) | VAT_DEFAULTS_DTL | Click VAT Defaults on the Bank Informationpage. | Specify default VAT information for a bank. See Working with VAT. |
Bank Branch Information | BANK_BRNCHPNL | Banking, Banks and Branches, Bank Branch Information | Define bank branch information. |
Address | BRANCH_ADDRESS_SEC | Click Address Information on the BankBranch Information page. | Set up the bank branch address. |
Bank Contacts | BRANCH_PNLCNTCT | Click Contact Information on the BankBranch Information page. | Set up contact information for a specified branch. |
VAT Defaults Setup (value-added tax defaultssetup) | VAT_DEFAULTS_DTL | Click VAT Defaults on the Bank BranchInformation page. | Specify default VAT information for a bank branch. |
Contact Information | TR_CONTACT_PNL | Banking, Banks and Branches, Contact Information | Enter information about how to contact the people with whom you do business. |
Contact Address Information | TR_CONTACT_ADDRSEC | Click Address Information on the ContactInformation page. | Enter address information for your financial contacts. Note. You must enter branch address information correctlyfor this information to be available for use in Billing. |
Defining Bank Information
Access the Bank Information page (Banking, Banks and Branches,Bank Information).
Type | Select a bank type. Options are: External: A bank or counterparty that existsseparately from your organization. Most banks and brokerage firms are in thiscategory. External banks are those you conduct business with outside of yourorganization, such as banking partners, brokers, issuers, and guarantors.You can associate external banks with a reconciliation method, cutoff times,settlement instructions, vendor banks, customer banks, and employee banks. Internal: A bank or counterparty that ispart of your organization (for example, a central treasury, a subsidiary company,or an operating division). Netting: A Receivables or Payables counterpartywith whom you have established a netting contract to roll up transactionsand thus decrease the overall number of transactions between parties. Origin: A Receivables or Billing entitythat holds funds until they are transferred to a bank. Typically, this isan organization with which you have a lock-box banking arrangement. |
(USF) Agency Location Code (United States federal agency location code) | To reconcile U.S. federal government schedule ID payments, select theU.S. Treasury Disbursing Office that is disbursing payments for Treasury Schedules(known as SF-1166 Voucher and Schedule of Payments). This option applies onlyto banks with a default currency of USD. The General Ledger report GLSF224P uses the Agency Location Code (ALC)when reporting General Ledger, Receivables, and Payables cash activity tothe federal government. See General Ledger Reports: A to Z. |
Bank ID Qualifier | Select a bank qualifier, if one is defined for the bank's country. Thesystem uses the bank qualifier to validate values when you create accountsfor the bank. |
Bank ID | Enter a bank ID, to use electronic banking. This is the code by whichthe bank identifies itself. The code is contained in the electronic statementand edited according to rules driven by the bank ID qualifier. This fieldis accessible only for external and origin bank types. |
Immediate Origin and Immediate Destination | Enter origin and destination routing codes for electronic transfers.Obtain the codes from your bank. |
Important! You can define the same bank ID for differentsetIDs; however, you can define a specified bank account number only onceper bank ID.
Bank Options
The bank type determines the options that are available in the BankOptions group box.
Internal BU (internalbusiness unit) | Denotes a bank or counterparty that is an internal business unit. Thisoption applies only to internal bank types. If you select this check box,then also specify the General Ledger unit with which it is associated. |
Treasury Counterparty | Denotes a bank or counterparty with which you transact deals. Selectto use a counterparty for transactions in Deal Management. This option appliesto both internal and external bank or counterparty types. |
Banking Counterparty | Denotes a bank or counterparty with which you maintain a banking relationship.Most commercial banks fall within this category. This option applies onlyto external bank or counterparty types and enables you to associate externalaccounts with this entity. |
Financial Sanction Validation | This field appears only if Enable in Treasury Settlements orPayables Enabled at Bank is selected on the FinancialSanctions Option page. Selecting this field in conjunction with Enable in TreasurySettlements on the Financial Sanctions Option page, will initiatea financial sanctions search and validation of the payee before dispatchingsettlements originating from this bank in Cash Management. For Payables and eSettlement, selecting this field in conjunction withPayables Enabled at Bank on the Financial SanctionsOption page will initiate a search and validation of vendors at payment time. See Setting Financial Sanctions Options. |
Notes | Click to enter miscellaneous notes about the bank. |
VAT Default (value-addedtax default) | Click to access the VAT Defaults Setup page. The VAT Defaults Setuppage is a common page used to set up VAT default settings for all PeopleSoftapplications processing VAT transactions. On this page, you can define bankinformation defaults as applicable. |
Note. The VAT Defaults link appears on all Bank Informationpages; however, it is available only if the country for the bank is set upfor VAT.
See Also
Reconciling Federal Schedule ID Payments
Working with VAT
Defining Bank Branches
Access the Bank Branch Information page (Banking, Banks andBranches, Bank Branch Information).
Bank ID Qualifier | Select a bank qualifier, if one is defined for the branch's country.The system uses the bank qualifier to validate values when you create accountsfor the branch. |
Branch ID | Enter a numeric branch ID, if one is defined for this bank branch. |
VAT Registration Options
Bank branches represent physical bank locations. In order for the systemto determine the appropriate VAT treatment for transactions generated througheach branch, you must define the VAT registration information, as well asthe VAT default parameters to use in VAT accounting.
Register Branch for VAT (register branch for value-added tax) | Select the check box and enter the VAT Registration ID, whichthe system automatically validates. |
Use VAT Suspension (use value-added tax suspension) | Select if bank has been selected as a supplier that suspends chargingVAT. Note. You must first set two other VAT suspension settingsin PeopleSoft to enable the VAT suspension functionality: you must selectthe Use VAT Suspension check box on the VAT Countrytable and set the VAT Exception Type for theVAT entity to Suspension. In order for a VAT applicabletransaction to be marked as suspended, these three settings (VAT Country,VAT Exception Type for VAT entity, and the bank branch set as a VAT suspendedsupplier) must be in place. |
VAT Defaults (value-addedtax defaults) | Click to access the VAT Defaults Setup page. The VAT Defaults Setuppage is a common page used to set up VAT defaulting for all PeopleSoft applicationsprocessing VAT transactions. On this page, you can define bank branch informationdefaults as applicable. Note. The VAT Defaults link appears on all Bank Branch Informationpages; however, it is available only if the country for the bank is set upfor VAT and the Register Branch for VAT checkbox is selected. |
See Also
Working with VAT
Defining Branch Contacts
Access the Bank Contacts page (click Contact Information onthe Bank Branch Information page).
Contact ID | Select a contact ID to automatically populate the Name, ContactTitle, and Telephone fields. |
| Click to access the Financial Contact Information page and edit contactinformation. |
Edit Contact Information Defining Financial Contacts
Access the Contact Information page (Banking, Banks and Branches,Contact Information).
Contact Type | Select the contact type. Options are: Accounts Payable, BillingContract, Broker, CommercialPaper Contact, Contract Collaborator, ExecutiveManagement, External Contact, General, InternalCorporate Contact, Investment Pool Contact, Lineof Credit Facility, Sales Contact, ServiceContact, or Warehouse/Shipping Contact. |
Bank Code | Displays the code of the banks with which the contact is associated. |
