Understanding Banking

In PeopleSoft Global Payroll, the majority of banking setup starts in the core application and continues with processing in PeopleSoft Global Payroll for Spain. Oracle strongly recommends that before reading this topic, you read the banking feature in the Global Payroll core documentation.

Before running the banking process for Spain, you must set up basic banking information in the core application and within the PeopleSoft Global Payroll for Spain country extension. You must:

• Define bank information, such as bank name, address, and ID.

• Define Electronic Funds Transfer (EFT) formats.

• Identify source banks and link source banks to pay entities.

• Define employee bank accounts and net pay election.

• Define deposit schedules.

• Define recipients.

• Define the banking file.

  Note: You perform this setup step within the PeopleSoft Global Payroll for Spain country extension.

  See Setting Up Banking.

After you run payroll, funds are sent to the source bank along with instructions for payments. The bank needs the following information:

• The name of each employee who is going to be paid.

• The amount that each payee is to receive.

• The name of the banking institution where the wages are to be sent.

This information is extracted from the core application based on a list of payees corresponding to those in the selected payroll run. The system creates a file with lines for each payee, containing a name, the bank account number, and the payment amount. This file is sent to the bank, which then distributes the funds.

The International Bank Account Number (IBAN) is an account number that uniquely identifies a bank account and is assigned according to International Organization for Standardization (ISO) standards so that it can be used across national borders. PeopleSoft applications can include this information at the bank account level.

As of January 1, 2004, IBAN must be used for all transfers out of Spain and for special transfers.

Part of banking setup includes IBAN definition. To set up IBAN functionality, you must select the IBAN Enabled field on the IBAN Country Setup page. When the IBAN feature is enabled, the system displays the IBAN field on the Source Bank Account page and the Edit IBAN link on the Maintain Bank Accounts page for the country that you indicated.

See Setting Up IBAN Information.

After you have set up banking information, you can run the banking process.

See Processing Banking.