Running the Banking Processes

Use Global Payroll for the U.K. to facilitate your organization's banking process. The banking feature in Global Payroll is optional.

This chapter lists prerequisites and discusses how to:

• Set up deduction recipients.

• Run the U.K. banking processes.

• Run banking reports.

See Also

(GBR) Bank and Building Society Setup in the UK

Defining Banking Instructions

Prerequisites

Before you define deduction recipients or run banking, you need to:

• Set up bank account information.

• Set up funding (source banks) for pay entities.

• Define payee bank account information.

• Define payee net pay elections.

See Also

Defining Banking Instructions

Setting Up Banks and Bank Branches

Entering Bank Account Information

Setting Up Deduction Recipients

This section provides an overview of deduction recipient setup and discusses how to:

• Define deduction recipients for tax, NI, and student loans.

• Define deduction recipients for court orders.

• Define deduction recipients for loans.

• Define deduction recipients for share schemes.

Understanding Deduction Recipient Setup

To set up deduction recipients:

1. Define the recipient's bank account information.

2. Define recipient ID

   Use the Define Deduction Recipients component to set up the recipient ID and payment information. Link the recipient ID to the recipient's bank account .

3. Assign recipients to deductions or payees.

   Deduction recipients are attached to deductions (on the Recipient page of the Deduction component) if the same recipient is used for all payees. If a deduction recipient varies by payee, assign the deduction and deduction recipient to payees using the Add Deduction Recipients page.

The pages used to define deduction recipients are discussed in the PeopleSoft Enterprise Global Payroll 9.1 PeopleBook.

See Also

Defining Banking Instructions

Pages Used to Define and Assign Deduction Recipients

See Also

Setting Up Banks and Bank Branches

Selecting a General Recipient for a Deduction

Defining Recipients

Assigning Recipients to Deductions and Payees

Defining Deduction Recipients for Tax, NI, and Student Loans

For statutory deductions for PAYE tax, NI, and student loans, the deduction recipient is a General recipient because the deductions are paid to the same recipient for all employees. Attach the recipient to the deduction using the Recipient page in the Deduction component (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Elements, Payroll Elements, Deductions, Recipient).

This table lists the deduction recipient IDs that you must set up for statutory deductions:

Important! You must use the recipient IDs listed above. The U.K. banking process will not work correctly if you set up different recipient IDs for tax, NI, and student loans.

Defining Deduction Recipients for Court Orders

The recipients for court orders are either general or individual, depending on the court order type. For example, council tax payments are paid to the appropriate council and this varies by payee, but child support payments are paid to the same recipient.

Assign general recipients to the court order deduction using the Recipient page in the Deduction component. For court orders that vary by payee, define the deduction recipient and assign it at the payee level as follows:

1. Define the deduction recipients for the payee's court order on the Define Deduction Recipients page.

   Select Individual in the Recipient Category, select the deduction recipient's bank account.

2. Assign the deduction and the deduction recipient to the payee on the Add Deduction Recipients page (Global Payroll & Absence Mgmt, Payee Data, Net Pay/Recipient Elections, Add Deduction Recipients)

   Select the court order deduction in the Element Name field and select the deduction recipient in the Recipient ID field.

See Also

Defining Recipients

Assigning Recipients to Deductions and Payees

Defining Deduction Recipients for Loans

Loan processing uses one deduction, LOA DD LOAN, that is resolved once for each loan ID. If you want to set up a different deduction recipient for each loan type, you need to use a formula to identify the deduction recipient based on loan type and attach this formula to the deduction LOA DD LOAN.

PeopleSoft delivers the formula LOA FM DED RECIPNT for this purpose. Modify the delivered formula for your loan types and deduction recipients.

LOA FM DED RECIPNT identifies the loan type based on the value of the variable LN VR LOAN TYPE, which is a user field for the driver accumulator LOA AC LOAN DRV. Here is the formula as delivered by PeopleSoft:

If LN VR LOAN TYPE = 'ENTER LOAN TYPE 1' Then
    'ENTER RECIPIENT ID'   >>  LOA FM DED RECIPNT
    Exit
Endif
If LN VR LOAN TYPE = 'ENTER LOAN TYPE 2' Then
    'ENTER RECIPIENT ID'   >>  LOA FM DED RECIPNT
    Exit
Endif
If LN VR LOAN TYPE = 'ENTER LOAN TYPE 3' Then
    'ENTER RECIPIENT ID'   >>  LOA FM DED RECIPNT
    Exit
Endif

To modify this formula, for each loan type:

1. Replace the text ENTER LOAN TYPE1 with your loan type.

2. Replace the text ENTER RECIPIENT ID with the recipient ID.

For example, suppose that these are the loan types and deduction recipients:

The formula would look like this:

If LN VR LOAN TYPE = 'MORT' Then
    'MORTREC'   >>  LOA FM DED RECIPNT
    Exit
Endif
If LN VR LOAN TYPE = 'CAR' Then
    'CARREC'   >>  LOA FM DED RECIPNT
    Exit
Endif

To set up deduction recipients for loans:

1. Define deduction recipients for each loan type on the Define Deduction Recipients page.

   Define the deduction recipient for each loan type as a General recipient and select the bank account into which loan deductions for that loan type are transferred.

2. Modify the formula LOA FM DED RECIPNT to include your loan types and recipients.

3. Check that the formula LOA FM DED RECIPNT is attached to the loan deduction LOA DD LOAN.

   On the Recipient page of the Deduction component, check that the Recipient Type field is set to Recipient and LOA FM DED RECIPNT appears in the Recipient field.

When you view the payroll results, using the Results by Calendar Group component, the loan type is displayed in the User Field 2 column on the Earnings and Deductions page.

Defining Deduction Recipients for Share Schemes

When you define share save and share buy schemes, you specify the deduction elements used for each scheme. This enables you to use one deduction per scheme ID or the same deduction for multiple schemes. Using one or multiple deductions has implications for setting up the deduction recipients for those schemes.

To illustrate how this affects payment processing, suppose that your share schemes are associated with deductions as listed in this table:

If you enrol an employee in all these schemes, the system automatically assigns deductions to the payee as follows:

For schemes SS001 and SS002, the deduction is unique to the scheme, which means that you can define one recipient for that deduction. However, schemes SS003 and SS004 use the same deduction. If you want different recipients for SS003 and SS004 you can't define one recipient for the deduction; the recipients must be defined at the payee level.

If you define a different deduction for each scheme ID, set up deduction recipients as follows:

1. Define each deduction recipient as a General recipient.

2. Attach the deduction recipient to the deduction on the Recipient page in the Deduction component.

However, if you have one deduction linked to multiple scheme IDs and you have different recipients for each scheme ID, the deduction recipients must be defined at the payee level:

1. Define each deduction recipient as an Individual recipient.

2. Assign the deduction recipients to employees enrolled in the schemes on the Add Deduction Recipients page (Global Payroll & Absence Mgmt, Payee Data, Net Pay/Recipient Elections, Add Deduction Recipients).

   If an employee is enrolled in multiple schemes with the same deduction, use the Recipient Tag field to distinguish instances of the same deduction. For example, if an employee is enrolled in two share schemes that have the same deduction, on the Add Deduction Recipients page you add that deduction twice, select the respective recipients in the Recipient ID field, and enter unique values in the Recipient Tag field.

3. If an employee is enrolled in multiple schemes with the same deduction, update the Element Assignment by Payee page to assign the recipient tag to the relevant deduction instance.

You can view payee assignments on the Element Assignment By Payee page (Global Payroll & Absence Mgmt, Payee Data, Assign Earnings and Deductions, Element Assignment By Payee).

After running the GP UK Banking process, the results show multiple payments for the share scheme deduction. The View Deductions page of the Review Payments by Cal Group component shows the deduction, the recipient tag, and the recipient ID.

Example: Defining Deduction Recipients for Share Schemes at Payee Level

In this example, there are two share save schemes. This table lists the scheme IDs, the deduction for each scheme, and the corresponding deduction recipients:

If an employee is enrolled in both the SS00 and SS01 scheme, you add the following rows on the Add Deduction Recipients page:

On the Element Assignment by Payee page, you add the recipient tag as follows:

Note. When you enrol an employee in a share scheme, the system automatically creates the element assignments and instance values.

When you run the banking processes, instance 1 of deduction SS DD SVE is associated with the recipient tag 10, which means that the deduction is paid to recipient RCP2000. Similarly, instance 2 is associated with recipient tag 20 and hence recipient RCP2001.

Here is an example showing a payee with two recipients for the deduction SS DD SVE AA:

Here is an example showing how the recipient tag is assigned to each instance of the deduction SS DD SVE AA:

See Also

Assigning Recipients to Deductions and Payees

Reviewing Banking Results by Calendar Group

Defining Payee Overrides

Running the U.K. Banking Processes

This section provides an overview of the U.K. banking processes and discusses how to create a file for BACS transmission.

Understanding the U.K. Banking Processes

When you have finalized a pay run, run the Global Payroll core banking process. This banking process has two steps: calculate and finalize. Run the calculate step any number of times, but the finalize step only once. You can use the Review Payment by Calendar Group page to view net pay and deduction recipient banking transactions before you run the U.K. banking process.

When you have run the core banking process, run these processes provided in Global Payroll for the U.K.:

1. Banking process GBR.

   This process populates a U.K.-specific table, GPGB_PAYMENT, that contains basic calendar run information and the transaction and bank data necessary to create a file for BACS-processing software. View the results of this process using the Review Payments by Cal Group component (Global Payroll & Absence Mgmt, Payment Processing, Review Payments by Cal Group).

2. Create BACS File process.

   This process transfers the data from GPGB_PAYMENT, for a given calendar run ID, into a fixed-length file on disk suitable for BACS transmission.

   Note. The process does not write negative values to the BACS file. It reports any negative values in the process log file.

Prerequisites

Before you can run the U.K. banking process, you must run the core Global Payroll Application Engine process (GP_PMT_PREP).

See Also

Defining Banking Instructions

Pages Used to Run the U.K. Banking Processes

Creating a File for BACS Transmission

Access the Create BACS File GBR page (Global Payroll & Absence Mgmt, Payment Processing, Create BACS File GBR, Create BACS File GBR).

EFT File Path and Name (electronic file transfer file path and name)

Enter the path and file name for location of the EFT file that you want to create.

See Also

Defining Banking Instructions

Running Banking Reports

This section lists the page used to run the banking reports.

Page Used to Run the Banking Reports