Prepared by: Session ID: Improve Banking operational efficiency by Implementing Financial Gateway and Cash Management Name Khalid Mohammed / Dan Kanner Title Senior Consultant / Company Financial Gateway advice on helping process payments and bank reconciliation

Financial Gateway Overview Business processes provided by Financial Gateway Payment Processing Bank Statement Processing Payment Acknowledgement

Financial Gateway Overview Financial Gateway enables you to process large volumes of payment formats including SEPA (Single European Payment Area) used in European union. Financial Gateway provides functionality to process electronic payments and load electronic bank statements and payment acknowledgements Steps to process payments through Gateway Load payments from Accounts Payables Formats the payment data (localization as necessary) Authentication Creation of Payment file and Dispatch to Bank Payment Acknowledgement from the bank

Straight through processing Enables the transaction to be processed electronically without manual intervention Unique reference created for all Accounts Payable transactions (AP000000XX) Payments sent to Financial Gateway Option can be sent on Financial Gateway source to "Dispatch on Load" File is transmitted to the bank by batch process Bank Statement is loaded with reference (AP000000XX) Reconciliation process will reconcile the payment automatically against bank statement line if the reference, value date and amount matches

IMPLEMENT OUT-OF-THE-BOX FINANCIAL GATEWAY IN 7 EASY STEPS

Step1 – Choose a payment Layout and create Bank Integration Layout Select a Payment Layout Select a payment layout accepted by all your banks Update Code Mappings

Bank Integration Layout Bank Integration Layouts -Define bank integration layouts for each layout used -Select if using Integration broker or File or EBICS -Define Layout properties

Step2 – Update external bank account and configuration Update the Bank Account - Currencies - Rate types - Treasury flag - Statement Accounting - GL accounts/Chartfields Select Reconciliation method - Automatic /Manual/ Semi Manual Electronic Layouts - Select the payment Layouts On the payment tab

Step3 – Adding an Invoice with the new layout Adding a new Invoice should default the EFT layout on payment tab to settle by Financial Gateway

Step4 – Update and run PayCycle and Load the payment into Financial Gateway Select the payment in PayCycle and Send the payment to Financial Gateway

Step5 – Dispatch payment from Financial Gateway to produce a delivered file format Dispatch the payment from Financial Gateway to create a payment file with delivered setup

Step6 – GAP analysis- Compare delivered file with Bank specification and find the GAPS Performa GAP analysis of the delivered payment file with the specification from the bank

Step7- Apply adjustments to the application package, classes Update the delivered application Package TR_FORMAT and update the payment layout and make any adjustments

Reconciliation – types of reconciliation Manual Reconciliation ​ Manual reconciliation is when the customer receives a printed bank statement at regular intervals, and physically checks the statement entries against the online system transactions and reconciles them. The bank statement was not loaded into the system. Automatic Reconciliation ​ Automatic Reconciliation will automatically do a comparison of bank transactions with system transactions. Electronic Bank Statement files can be formatted and loaded into Peoplesoft bank reconciliation tables, after which the automatic comparison process can run. Any reconciliation exceptions or errors from this process can be reviewed and addressed. Loaded bank statements can be reprocessed again until all exceptions are reconciled or resolved. Semi-Manual Reconciliation ​ Semi-Manual Reconciliation provides a simultaneous display of system and bank transactions to scroll the page and match transactions. Use the Semi-Manual Reconciliation page when:​ - There isn’t a one-to-one match between your bank and system transactions​ - After you’ve run automated reconciliation and have exceptions to reconcile​ - Or after entering a hardcopy bank statement online.

Reconciliation Automatic reconciliation one-one match Automatic reconciliation disbursement tolerance for foreign currencies

Reconciliation Disbursement Tolerance External transaction created automatically

Reconciliation Semi Manual Reconciliation

Bank Statement - System and Non System transactions System Transactions – The bank transaction can be reconciled against the transaction in the system AP disbursements Treasury Wires Checks etc These transactions will be reconciled automatically or semi-manually Non System Transactions – These transactions don't have a match on the system. Bank Interest Fees & Charges etc Treasury accounting will create an external transaction matching a template assigned on the Statement activity type

Bank Statement - exceptions After running auto reconciliation process, there may be transactions which may not match the criteria for auto recon with System transactions. In such cases, the transactions will be analyzed and corrected.

Handling exceptions External transactions can be created for the exceptions.

Bank Statement - Statement Code and Statement activity type External transactions are created by Treasury accounting process which assigns an appropriate template linked to Statement activity type

Bank Statement - Statement Code and Statement activity type External transactions are created by Treasury accounting process which assigns an appropriate template linked to Statement activity type

Statement activity type and Treasury Templates Statement Activity Type – Drives the accounting template to be used by treasury accounting Treasury Accounting Template – defines how the bank line are posted

Treasury accounting entries Treasury accounting entries – Can be reviewed before they can be posted to General Ledger

Book to Bank Reconciliation Book-to-bank reconciliation compares bank-reported balances in the bank statement against the system's general ledger bank balance for a specified fiscal period. The Book to Bank Reconciliation process (TR_BTB_CALC) is normally performed as part of the periodic PeopleSoft General Ledger Close process after you run bank reconciliation and have posted all subsystem transactions

Book to Bank Reconciliation

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