Unlock the Benefits of Traveling Format Billing for Banking

Traveling format billing for Banking

foreign [Music] was I talking on mute until now I mean I wonder did you hear me talking about the payment uh no no okay sorry I was talking on you okay so yesterday I mentioned that uh you know today I will uh we will take up a prepayment invoice as a process but then in order to complete the entire free payment cycle the payment activity has also to be done okay now in order to do the payment activity there are certain setups required so that is what first we will uh have a look at all the remaining setups related to the payments and the payable and then we will come back to the payment uh you know payment process and then finally the prepayment process okay so also we understand from Kumar you are going to create a user for us correct yeah yes uh that also I was actually speaking on book uh so I will be assigning that employee records because I can't proceed anything immediately after our session thank you so much yeah so okay so uh from the payment uh you know configuration process we have already seen few of the items that are actually applicable for both invoicing and payment that is payment method you have uh you know seen similarly uh you know we have seen the payment options and the disbursement system options uh these are some things again that is uh crucial for payment uh that those are uh you know the part of the payment setups as well okay but then there are certain other setups that are the remaining setups as you can say that are required okay for the payment uh uh payment setups now what are those let me go to the curriculum and show you them or show those to you Okay so this one okay payment methods we have seen right and then uh payment formats okay additionally what we need to define the payment formats we need to Define okay and then after the payment formats are defined then we will do the bank setup okay setup of the bank accounts okay Bank creation of the bank creation of the bank branches and uh you know bank accounts and then the resulting payment uh document okay so let me do one thing just move this uh setup tasks okay so that is our next item so create payment method I hope you had already seen that right payment method configuration if not let me quickly show you again going to setup anime maintenance going into financials and then we will define what manage payment methods so these are the same payment method that you saw at the supplier you know payment attributes level okay so you had seen certain payment method we had defaulted so this is the setup where basically all those payment methods are coming from okay so if at all your business okay you're the client for which you are uh you know doing the implementation they have certain specific methods in that case you will have to Define them first here and then once the supplier data has been loaded you will have to manually assign okay or you know assign all the particular records okay there are two ways either you can manually assign it or automatically system will assign it now what are the conditions for that we will understand okay so let me uh first of all uh search for one of the method that is checked okay which this is a seeded or a system defined method check method okay so the second book so you see here uh the in when I edited it there is a name there is a code okay then from date okay from when this particular payment method is active Okay and then you have certain usage rules okay now this usage rules basically uh Define the access okay uh the access that this particular payment method has or it controls the access with respect to this payment method okay now you will see here uh under the usage rules you have payable you have receivable and then you have cash management okay so if you want this payment method to be uh applicable for payable application okay in order to carry out or in order to you know tag it against the invoices and uh for the payments as well then you will have to enable this for a payments okay enable for use and payables and then if you want to restrict it to any business unit or legal entity or you know payment process transaction types then in that case you will have to specifically select them okay similarly uh if they if you want to use it for a customer refund activity and in receivables so whenever in receivables uh you know a customer refund uh is created uh that gets actually created as an invoice in payable okay first that transaction is created in receivables and then automatically there is an integration between receivable module and the payable module and in payable module the invoice is getting created for that customer which in turn you will make a payment against okay so that we will understand at that point of time when we cover that run actually receivable but then since that method okay since the method is required for such a kind of payment also that is why this this place is available in the payment method configuration okay that is enable for using receivables and then if you want to use it for cache management then again that payment method has to be enabled for cash management as well okay now this checkbox that you see uh straight away under the usage rules but before the tabs automatically assign payment method to all pages so whenever you create a payment method uh there is an option for you to automatically assign okay automatically use this method on all supplier records use as in uh you know add it under that list automatically so if you check if you enable this checkbox then for all supplier records this payment method gets added in the list okay if if you do not enable this then what will happen is this will not get added and you will have to manually go there in that particular supplier uh you know site level or you know profile or address level payment Tab and add it manually okay if you want in future to use that particular method for any invoice related to that supplier okay so that that becomes a tedious task so let's say for example if there are hundreds of suppliers for whom that method is applicable that payment method is applicable then it becomes quite a cumbersome cumbersome task okay to go into each of the supplier and add them one by one manually and that is the reason Oracle has given you with this particular uh feature whereby enabling that automatically assign all the of that particular payment method that you are creating becomes applicable for all the suppliers in the supplier master okay so this is one thing that you need to understand remaining things as in when we cover it we will come back to this section and understand it okay now let me show you one case okay let's say if if the supplier is located in India then he then you know probably they will want a certain uh payments to be done or quick payments to be done okay then neft or rtgs okay or imps is kind of a payment method okay then in that case that particular payment method has to be created okay so let me say imps is one of the payment method that I want to create so I will say imps inps and again description you will provide us the entire description for imps okay then the from date okay so from date generally needs to be an older date from when basically this this method okay or this configuration becomes applicable okay so let me enter the older date okay and then under the usage rules automatically this will be enabled that means so that you know you don't miss on this aspect if you miss then manually you will have to keep on adding to all suppliers okay then under payables you see automatically this is enabled for use in payable but then if you want to restrict it as I mentioned you can restrict it for specific views and legal entities by clicking on specific and adding that views and legal entities then it will be only applicable for those views or legal entities that you have restricted okay right now I'm keeping a task all similarly the others for a stable also this will be enabled for cash management also this will be enabled but if you want to restrict it so that you know this only needs to be utilized in payable process only then you will for the remaining two you will have to uncheck this okay right now let us keep it uh same for all okay and then I will say save and close so now this check method has been created and automatically if you go and look for your supplier record under that maybe at the site or profile level if you go under the payment Tab and see a search for imps you will be able to find imps okay because it is automatically assigned to all supplier reports this result the payment method creation is done okay then the next thing is defining the payment formats okay so for each type of uh payment okay there is a format Associated to it so when you send an instruction to the bank okay so Bank actually requires uh the payment information okay in a specific format okay so generally you know all kinds of international payments like ACH and uh which is using usually in U.S that is followed similarly separ payments in a European region okay cross-border currency payments in the European region okay similarly we have in our case rtgs okay so all of these has a specific format associated okay so if you go to a bank and you say that you know we we want to do the rtjs transfer then they actually give you a form okay which is a which is nothing but the format okay so similarly even in case of digital transfers okay when uh from Oracle since Oracle is the Erp okay and then whenever payment instructions are to be sent to bank okay it is uh directly from the Erp itself it can be sent to the bank server okay so in such a case a specific format is what is in uh you know required by the bank you need to send the payment instructions in a specific format just like we have in case of check right check what check template is what it is a format okay the same way for any kind of wire transfers or or any kind of electronic transfers also there are specific formats that are followed by each of the banks okay and then that format okay at the time of implementation okay that format has to be received from the bank okay and that format has to be configured okay or that layout has to be configured in the bi publisher tool and that activity generally is done by uh the technical people who are you know well versed with the SQL and pl SQL and all and who know the vi publisher tools okay so in that the template is created okay and stored in a stored in a place in the Oracle uh you know uh directories Cloud directory okay now after that comes our part where we need to do a setup okay such in order to link that particular layout okay and that is called manage payment format okay that is the task for defining the payment format okay foreign okay so let us search for this task called manage payment format it is not manage payment format rather it is manage format so manage format for payments okay this is what you need to select and then click on this and in here you will have to add the layout that has been designed okay by the technical team API publisher tool okay in here you are basically linking that particular uh format or linking that particular layout okay this task is done by us as functional Consultants this task is done by us so how to create it so here what you will have to do is you will have to select okay the type type of the document and what is that it is called disbursement payment file formats this is what you need to select your type as okay and then click on create okay and in here you will give the name of the format okay so let me say uh Barclays wire transfer for matter okay and then the same code I will have to give okay we are see w wire okay so this is the code that I am providing and then the lead from which it needs to be applicable so an older date and this is where use actually link the template okay the template or the layout basically that is designed based on the format that bank has provided you based on that format you design the template okay so search for the template so once they have placed once once the technical people have placed that particular layout file in the Oracle uh uh you know directory there is a designated place okay where they will place that and then it will appear to us here under this list okay and then we will have to search it so with with whatever particular name you know they will place it that we will have to search it okay right now it will not be available with the name as Barclays because we are just taking a hypothetical scenario okay so that is where I will attach the template called standard foreign but just for your understanding you can add it okay let me try to see if there is a wire format available or what okay so these are all you know localization based Portuguese wire Italian wire and German wire these are the respective countries wire transfer formats okay so right now I will just select standard as the format standard check standard check stub after clean bit okay let us just select this but in your in the real life business it will be the respective bank account the template also will pair the respective Bank uh you know Bank name okay and the word mode of payment uh format okay it will it will bear that name and then ingly you will have to attach it okay and then you save and close only this much is to be done okay rest of the things are kind of you know Advanced validations that you can place on the format so this is how you create the format okay now our next item okay what is the next item basically creation of the payment process profile okay or let's say or we can go ahead with this create Bank okay let's go with creation of the bank bank branches and you know bank account uh uh these three let us have a look at okay create Banks create branches and then create bank accounts okay so for that what is the navigation just a second okay so what is the task name it is called manage Banks okay so this one manage bank which is part of cash management but then it is a required setup or it is kind of a shared setup okay between payables receivables and cash management okay and that is the reason we have to Define it so manage bank accounts okay so manage Banks basically click on that and you will have to create first of all the bank name okay and provide the bank code and Associate the country in which the bank is located Okay so simply you will click on ADD provide the name okay so let's say United States and then give the name of the bank okay so let me save Barclays Bank U.S okay then the bank code you can provide okay and provide the taxpayer and the tax registration number IDs and additionally you can provide the address and the contacts so this is the bank that we are creating okay so this is part of the master data okay once the bank has been created you will create the branches that are applicable or with whom we have our you know uh what do you say our bank accounts internal bank accounts as it is called okay where all our internal bank accounts are for that we need to create the branches similarly even we will have to create branches that will accommodate the supplier Banks also so we have seen right in the supplier setup we have seen to how to create a bank account that is called an external bank account for the supplier records and in that we saw right we need the bank and the bank branch so that is where uh if before the banks can be created in the supplier okay this you need to make sure that the bank and Bank branches uh Master data is available in this particular setting so bank is now created okay then let us create the branches so select that particular Bank that we have created click on view branches right now there will be no branches under that bank because this is a new bank we have created then click on ADD okay select the bank so Barclays Bank us right this is what we had selected and then give the name of the branch New York branch okay and then routing number so there are certain routing numbers which are unique numbers uh for each of the branches based on which you know the banks identify how the or to which bank a bank branch the transfer of funds need to be done okay so that is what the routing number is then similarly there is a big code which is called a branch number as well okay that has that has to be also sometimes required so it all depends population of all these fields okay depend based on the uh formats that are required by the blank so many of the banks in the format they would want okay certain information to be mandatory available like the branch code okay the branch number or the routing number or for that matter you know some other specific numbers would be required so in in for that to be done these Bank Masters need to be populated correctly okay only then you know system will be able to pick up those information during the payment process while and then be able to format the payments okay so input the routing number because that is mandatory we will input it rest all you know since we are not having an actual bank format so it's fine if you don't populate it as at this uh practice time but in real life implementation all these things will be required okay and then I will save so this branch has been created there is a validation some some validation is there let me see if this works just ice let me see other bank account try to find it it is based on the you know country that is fetching up that aspect let me see if there is a routing code to come then give bunches this is UK okay so somewhat like this let me copied there is a number specification probably that is why it is that validation issue is coming up okay let me go to new branches I will add now enter the bank name enter the branch name give the routing number maybe 38 then let's try to save it give me a minute let me check this one moment foreign um foreign so in this scenario if at all you know you are entering a specific case then from Google try to find out you know some number so as I tried out you know doing it for Barclays Bank U.S I just entered what would be the routing number so they it displayed a certain number okay and that is what uh you know I have this input now at the routing number field let's see it is not based on the actual number that the validation is being done there is some you know a country-wise code and uh you know Branch voice of uh you know numbering is there click for required okay specific code is actually getting validated by System okay so that would be an inbuilt uh setups that are there in Oracle okay so that based on that it is checking up and then I entered that number by simply uh searching out in Google and then enter it because it is a mandatory field showing as a mandatory field okay and then save it Okay click on Save and close so the branch basically the branch record is also created now comes the next part so this this is required by a bank and Branch uh Bank branches are required for the supplier external bank accounts as well and as well as for the internal benefits and now we will see creation of the internal bank accounts that is our businesses bank accounts okay as the next step so that is where under this uh you know Branch we will create the bank account so click on create bank account from and then you give the name of the account okay so what is the name of the account that you want to provide so generally it will be some name that will be identifiable or you know understandable for the payable uh people or you know who are working on the payments and all they need to identify which bank account is this is so that you know they can make or you know disburse the funds from those Banks bank accounts correctly to the suppliers okay similarly in case of receivables uh when they are recording the customer receipts okay then the appropriately the bank account can be selected and hence the name should be entered in such a manner which will be easy for the users or the accountants to identify the bank account okay so generally how it will be done is uh you know you will provide some name like in this case I will say ABC core and then not the whole number I will do I will input rather I will put uh asterisk asterisk and then I will probably put the last photos okay two five six four let's see so just by looking at the last four digits and the starting prefix uh accountants they would understand because they are working day in and day out on these aspects so they will be able to identify and then here you need to provide the actual bank account number okay the actual bank account number why because this is something that will be used during the time of payment formatting to be populated in the payment format and sent to bank therefore this should should be the correct bank account number okay so let me just put some some you know numbering this is dummy number okay just for your information or for our practice we are doing it now this belongs to US dollar okay all their funding all the balances bank balance is maintained in U.S dollars okay then legal entity so now bank accounts are controlled based on the legal age so generally in real life business also it is the same way right uh it is for each company okay or which has basically an individual identity okay it is for that basically the bank accounts are open now from a business perspective it is for each of the company that the bank account gets opened okay and that is why you will enter the legal entity or associate the legal entity to this internal bank account so in our case we will associate it to ABC called Financial Services legal entity so Banks and Bank branches are bu level or no it is kind of a common record yeah it at the environment level yes but then the account bank account that you create this is called internal bank account so our bank account or our businesses bank account those are internal bank accounts and the supplier bank accounts or the external bank accounts so the bank account that we create from here is the internal bank account okay and uh legal entity is uh enabled and then account type if you want to tag you can tag it whether it is a savings account or you know uh uh checking account or other account okay so like that you can have the value associated with it or current account in our case in India we call something called current account and so those values can be created under the list this is a lookup which you can search and then under that lookup you can add the values and then you will be able to tag it to the bank account that you are creating okay then description you can provide then iPad Ivan as I mentioned it is what it is kind of an international uh bank account number for Unique identification International okay then check digits you can enter Then This is main this particular internal bank account in which where do you want to use it you want to use it for payable activity receivable activity or for payroll activity so in uh HCM there is a payroll module so if this account is something that you want to use for payroll processes then you will have to enable that right now we will be looking at doing it for tables and receivables okay because we might want to use it for both payable as well as the receivable process some of the businesses they have a process where for payable they keep a separate bank account for receivable they keep a separate bank account because they want to you know keep the records segregated okay so for their easy management data management perspective they actually have different accounts okay so anyways whatever the business scenario is ing to that you can enable now we come to the general section so in the general section first thing is the GL accounts so what is the account combination that you want to to associate with this particular bank account internal bank account so again there are two different approaches which businesses have okay either they have a common uh you know natural account for uh you know all the banks together uh or else they have a separate natural account for each of the bank accounts that they are operating okay in their chart of accounts I'm talking about okay for each of the bank accounts some of the companies some of the clients they actually maintain separate natural account values for each of the bank accounts but some of the uh you know uh claims they wish to go with us in one one particular account such that all the fund balances all the bank balances are shown under one uh account itself one natural account itself okay so depending upon whatever the scenario is ing to that you will associate the cash account combination with this internal bank account such that in the during the process of payment uh you know uh the payment uh windows or the payment uh application module can basically do the accounting based on the accounts that you have provided so this is the place just like in case of invoice the supplier liability is being picked from uh invoice option or the supplier site level right the same way in case of payments the cash and the cash clearing account will be picked up uh from the bank account okay in the bank account what you have provided from there so under the general tab you need to provide both these accounts okay cash account and clearing account so let us provide that company to which companies this to be Associated to cost center default line of business you want you can provide it or else you keep it as default then account okay here we will say cash let's take it for time being okay as cash thanks this in this case it will be you know in our real life scenario it will be either the specific value that is created for the bank or a normal Bank uh you know bank balance account or a bank cash bank account okay and then select the inter company as default and future as default so this is the cash account and cash clearing has also to be provided in what circumstances when in the payment option you have selected the method as account uh you know payment and issue accounting to be done at payment uh and declaring okay issue and clearing then in that case you will have to provide the clearing account here only then then you know the accounting will get completed otherwise it will Arrow so selecting the values a different account click on OK all right so then additional information if you want to provide any additional information under that there is this active icon so by default this will be active okay when you create but then if there is certain bank account that you want to disable on a later date okay since you have you no longer have that account okay or you have uh liquidated that account then in that case you will deactivate it so this is from where you deactivate or activate a particular bank account okay then multi-currency account so if for this particular bank account you want to make uh multi-currency payments or multi multi-currency receipts okay uh so even though the currency Associated to this account is US dollar but if you want to be able to uh do the payments uh in Euro using this particular bank account similarly you want to make any receipts uh okay of Euro or any other currency other than US dollars in this particular account then you will have to enable multi-currency okay payment documents will come uh let us uh okay that we will come back to that later once we have done with the bank account creation we'll come back to payment document later okay then controls so this controls we will understand when we do the cash management module okay this is again a shared setup shared between multiple modules okay so there are certain cash management activities for which the controls are to be you know defined at that point of time we will come back to this particular setup now security if this bank account access is to be secured okay secured by user and role then you will have to enable this and just and once you enable it uh you will have to provide the user roles and usernames who can access these bank accounts okay if you don't provide it then the access for all will be restricted if this is enabled okay right now I'm just keeping this as disabled so that you know we can have access across then business unit tests now this is where each and first first level of security is the legal entity but then the second level is each business unit wise so if you want to use it in the payable process or receivable process it is by business unit that we do the payment or the receiving activity okay so in such a scenario you will have to associate those business units uh under which you want to use this particular bank account during the transaction okay so let us add the business unit access okay it is ABC for insurance [Music] View okay and then cash and cash clearing account will be picked up on this okay from the general setup or from the general tab where we have given that from there it will pick up okay now foreign exchange gain and loss is something that you will have to provide additionally so that in case of any exchange rate differences the gain loss can be recorded properly and there is an account available to record the gain loss if it is not there and this gain loss situation arises then the accounting will fail in the absence of uh the value under this or the in the absence of account combination under this section okay so let us select the gain loss accounts as well so I'll click on search and I'll say Exchange okay let us say say realize gain loss on Exchange gain and exchange currency okay so we can take this okay generally there will be a separate account that has to be created for in the natural account list for this scenario as well before time being we can take whatever expense account we can get our ads on the same account we will take for loss as well okay now payment document categories why payment method so for let's say this is required when is it required when you enable the document sequence okay so if the document sequence or the voucher numbering facility is to be utilized okay for uh the payment documents or the payments that are created then in that case this will be required okay so the first step would be to define the document sequences and the second step for each of the payment method you might want to associate a document category okay so earlier in case of invoice we did not have to do this activity it was automatically what Oracle has Associated or linked it used to come up but for payments we will have to do this okay linkage establish a link between the payment method and the document category okay so here we have click on add the payment method what is the payment method that you would be using okay for this particular bank account so let's say imps is there we will use that let's say in the document category that I will associate is wire okay wire as in you know wire transfer so that wire will be available wire payments will be available as a method here or a category document category here okay so let's select that similarly let me say if I am going to use check method then I'll have to select the method as check okay and I will say check check payments as the document category and let's say if I want to use EFT then and the payment document category that I will associate is electronic payments okay so all the payment methods that I want to utilize okay or based on which I will want to you know create the payment from this particular bank account all those payment methods I will have to associate here under the bu access and then click on okay so now the access is created and then you can save so the bank account is now created okay in the bank account there is something called a payment document so whenever a payment is created a certain numbering is to be followed okay let's say for example this will be more valid from a checks uh check payment perspective so okay in the in real life whenever there is a check payment okay there is actually a standard leaflet okay or a certain numbered leaflet that is uh you know available to you from bank that bank has provided you so that is where you need to maintain that you know numbering and all okay on the on the payment that is Created from Oracle that check numbering and everything needs to be maintained ing to what you have on your hand okay so that is where payment documents uh as a setup comes up at the bank account level okay so let us add it click on ADD when you want to create a payment document the payment document that you are creating okay will be the naming you will have to provide okay check let's say it is for the check that you are creating the payment document and then Paper Stock type okay what is the Paper Stock is is it a pre-numbered stock or is it a blank stock so generally checks are pre-numbered right so the checkbooks that you get they are pre-numbered checkbooks so that is where whenever you want to create a payment document for check you will have to select the num uh type paper talk stock type as numbered stop okay you will have to then associate the payment format okay so this is where you actually associate the format which you have created earlier so with respect to check if there is a check format that you have created then you will have to assign that okay with respect to imps or with respect to wire transfers if there is a format that will be available then you will have to associate that okay so this is a check object we will first of all select the payment format let's say this is uh the payment format that we want to associate okay and then the payment document category type also you will have to associate here which is check payment two places you will have to associate the document category okay and then the document numbers so since this is a check and it is a pre-numbered stock So based on the number of checkbooks that you have okay you need to input the first um first document number and the last documentary and system will then follow the series okay as in when you create new payments it will follow the series using this particular payment method okay when you create a payment from Oracle it will use the series in the sequence of the numbers that you have entered okay so let's say for example at present we have uh our client has checkbooks from uh one till thousand okay with these many leaves okay with these of these many numbers from one document from check number one till check number thousand is the uh you know document that are available with the client and and if there are multiple checkbooks which constitute this entire uh you know check number then that you will have to enter so here I will say checkbook you know chk BK one two hundred for 100 uh leaves there will be one checkbook okay and then I will provide one to 100. for second checkbook okay chk let me just divide it into two okay five zero one till thousand and start number I will say five zero one two thousand okay and the second line the first line I will change it make it till 500. So based on whatever the cases in your physical in your uh in your the based on the physical book that you have at hand ing to that you will have to enter the information because this will be uh something that will be taken up during the audit process to you know audit the checkbooks and you know to see if uh you know if the numberings have been properly maintained what is the checkbook that was issued from the system and uh you know what is the records that you have the physical records that you have everything will be uh you know audited okay based on this these things as well okay so you have to input that okay then numbering but will be taken up based on this okay when you create a payment document using this particular check method and uh you know payment document then in that case this is the number of C or this is the sequence that will be followed from one up till thousand later on if there is a checkbook which starts from Thousand and One till two thousand then you will have to create another payment document altogether okay so that many number of payment documents will keep on getting created during the life of the uh business so that is one though so for check you can create the document now for wire also if you want to create a document such that a sequence is followed okay on the payment document then in that case for wire also you can create wire okay the format will be the wire transfer format okay let's say Barclays wire transfer format the payment document category that you will have to associate will be the one that you have associated with the wire pivots okay five payment okay and then the first available document so in this case wire document is not something like a pre-numbered stock okay so that is where you will select the type as blank stock and you just need to provide the first available number so in the series so that that particular series can be followed so let me say this is the series that I want to start the numbering for wire transfers okay then this is what it will be followed and there is no ending document so it will keep on following in as Infinity that is the difference between a numbered stock and a blind stock okay so that way we have created the uh you know payment documents and then you will finally save in close okay that's it for today guys uh we will continue with the payment setup the remaining uh one more setup is required before we can start with the actual payment process okay so that we will take up tomorrow do you have any questions now we need a help on that creating the user yeah I'll do it just uh let me do it right away in front of you so that foreign