Cash Management - Financial-Gateway

Financial Gateway: How to configure,
administer and deploy for all your EFT's

A deep dive session, demonstrating Financial Gateway
functionality and configuration.
Session ID#: 100450

Presented on Thursday, April 14, 2015
2014 Grant Thornton LLP | All rights reserved | U.S. member firm of Grant Thornton International Ltd
About your presenter
Matt Peterman
Senior Solution Architect
Business Advisory Services practice
Executive summary
Matt Peterman is a Senior Solution Architect with Grant Thornton in the Technology Solutions
practice. Matts focus for the past 15 years has been on PeopleSoft applications. He has served
clients through the development and implementation of financial strategies and Enterprise
Resource Planning software solutions, as well as PeopleSoft upgrades and re-implementations. He
has extensive knowledge in business process re-engineering, process improvement, software
assessment, system design, and implementation of financial systems. Matts work history includes
both Big 5 consulting and industry experience with positions at MarketSphere Consulting, Strong
Funds, and Arthur Andersen Business Consulting.
Industries
Energy Insurance Distribution
Financial Services Healthcare Grocery
Banking Hospitality Retail
Broker-Dealers Technology
Education
MBA-University of Kansas
BS-Kansas State University
2015 Grant Thornton LLP | All rights reserved | U.S. member firm of Grant Thornton International Ltd 2
About Grant Thornton
One of the world's leading organizations of independent audit, tax
and advisory firms
65% of
Grant Thornton
International Ltd1
38,000 Forbes Global US $4.7 billion revenues
people in over 100 companies 40,197 personnel3
100 countries
served by Grant Thornton
International member firms
2,975 partners
725 offices
Statistics as of Sept. 30, 2014
58% Grant Thornton LLP2 (U.S.)

5th largest of 2013
$1.4 billion revenues
global Fortune 100
accounting and 6,456 personnel3
consulting firm 529 partners
57 offices
Statistics as of Dec. 31, 2014
Specialized Partner of the Year
Oracle Excellence Award recipient
Grant Thornton is the 2014 recipient of the Oracle Excellence Award for
Specialized Partner of the Year: EPM North America
What are the Oracle Excellence Awards? Grant Thornton has demonstrated an outstanding level of
The Oracle Excellence Award program honors a small segment innovation in delivering proven, Oracle-based solutions that
of partners who have excelled at driving business value and solve our joint customers most critical business challenges,
innovation with Oracle technology. said Tom LaRocca, senior vice president, North America
Sales, Alliances and Channels, Oracle. We congratulate
How did Grant Thornton excel at delivering Grant Thornton in achieving the 2014 Oracle Excellence
Award for Specialized Partner of the Year North America
value and innovation? in EPM. This achievement is a testament to their dedication
Through the successful solution implemented at Ameren a to excellence and to providing customers solutions and
$7.5B, long-time St. Louis utilities client. The winning solution services that drive real business value and results.
integrated ERP, Hyperion and BI Applications, leveraging our
innovative use of Data Relationship Management as the center
point, creating true Business Harmony at Ameren.
How were the award nominees evaluated?

Grant Thorntons submission was chosen by a panel that included Oracle
Development, Marketing and Sales. Judging criteria included:
Grant Thornton's role in helping the customer adopt Oracle technology

The solutions innovative use of Oracle technology
Grant Thornton's expertise in developing and deploying the solution
Tom LaRocca, Oracle; Je Henley, Oracle; Ramke
Customer satisfaction or return on investment Ramakrishnan, Grant Thornton; John S;lwell, Grant Thornton;
Mark Sims, Grant Thornton
2014 Grant Thornton LLP | All rights reserved | U.S. member rm of Grant Thornton InternaBonal Ltd 4
Agenda
1. What is Financial Gateway?
2. Benefit of Financial Gateway
3. Payment Processing Features
4. Using Financial Gateway with CM and AP
5. Configuring Financial Gateway for CM and AP
6. Case Study 1: Centralized Payment Processing
7. Case Study 2: Direct Debits
8. Case Study 3: Fed Wires
What is financial gateway?
Financial Gateway is a component of Cash Management, but does NOT
require you to use Cash Management Functionality.
Provides functionality for the creation and approval of electronic payments
in a variety of formats.
Bank statement import processing, with mapping of BAI2 values to Psoft
transaction codes (e.g. CHK)
Optional coordination with Integration Broker to transmit and receive files
Able to import payments from outside sources / other systems
Does NOT create accounting entries
Benefits of financial gateway
Single place where Treasury professionals can observe and approve
payment transactions before they are sent to the bank
Delivered payment formats that meet established banking

standards.works out of the box for many payment formats
Its an alternative to the FIN2025.sqr EFT payment file creation process

executed by the AP Pay Cycle Manager
Integrates with PeopleSoft Financials modules with minimal additional

setup. Also includes delivered hooks to pull Payroll payments (and
security on who can view and approve each payment source)
Financial gateway payment processing
features
Delivered NACHA Payment formats (CCD+ and CCD, PPD, CTX)

Supports ACH Debit transactions (aka drawdowns, or direct debits)
NO Delivered format for Fed Wires, because banks have diverse platforms.
However, some banks will accept a delivered Psoft payment format
Can be setup to either place payment files at a network location, or transmit
them to the bank using Integration Broker.
Ability to encrypt payments
Supports multiple layers of security on both viewing and processing
information.
Provides optional additional approvals before dispatching payments to
banks.
Payment processing features
Using gateway with cash management
and payables
You must own, and turn on Cash Management in your Installation Options.
and payables
The External Bank Account is where you specify whether you will use the
Financial Gateway to process payments.
Specify the TR module in the Account Use
and payables
Specify a Payment Method with a Settle By of Financial Gateway instead of
Pay Cycle.
and payables
In Cash Management, when you Approve EFT Requests or Bank Account
transfers that use an External Bank Account / Payment method that is set to
settle through Financial Gateway, the system will automatically load the
Financial Gateway payment tables and will provide the user with a message
stating that the transactions were loaded.
and payables
In AP, you must continue to run the Pay Cycle, to Select, and Create the
payments. You will then be prompted with an option to send the payments
to the Financial Gatewaysimilar to the Electronic Payments option for
the FIN2025.sqr process.
and payables
Two options for Dispatching payments from Financial Gateway to the Bank:
- Scheduled Payment Dispatch (aka Batch)
Allows a user to launch the dispatch process to process all payments that meet the selected
criteria.
Best used when payment need minimal or no additional review before being sent to banks.
Manual Dispatch
- Provides a dashboard for users to select payments one-by-one or in mass to send to
the banks
- Optional additional approval available
and payables
The Schedule Payment Dispatch can be used to send all payments to the bank.
Users can specify a payment source, payment method, and many other criteria.
and payables
The Manual Payment
Dispatch page provides a
user dashboard.
Users can specify a payment

source, payment method,
and many other criteria to
view available payments to
dispatch
Individual payments can be

selected and sent to the
bank.
and payables
After payments are processed, users can review the payment status, and details.
Click on the links below can provide users with the ability to see the detail (literally
the NACHA formatted payment data from the file). Be careful to only give access
to those pages where necessary.
Configuring financial gateway
Configure the Code Mappings to populate the Demand Credit (22) or Demand
Debit (27) values for each bank account type (e.g. Bus Acct vs Savings)
Base values exist in the DEMO environment, and will likely work for basic
installs.
Update the Layout Catalog for the payment methods that you would like to use.
This is where the Code Map group is linked with the payment method.
Determine the level at which you want to specify the Company ID for the
account.
The Bank Integration Layout is where you link a payment method with a bank,
and then the accounts that roll up to the bank are eligible to use the payment
method on the external bank account setup.
The file output type is where you specify if you will drop a file to the network or
use IB to transmit the file. If dropping a file, create an External Command to call
your SFTP (etc.) and transmit the file to the bank
On the External Bank Account, specify the payment layout, and choose a Settle
By method of Financial Gateway.
Set your Company ID using the Define Layout Properties option.
Case studies
Case Study 1:
Centralized Payment Dispatch
Challenge:
We needed a way for the Treasury team to be able to observe all electronic
payment transactions BEFORE they went to the bank, in order to ensure that they
were aware of all funding requirements. They did not need to provide fiscal
approval, but they did want to hold payments until they were ready for them to be
sent to the bank.
Solution:
We loaded all payments to Financial Gateway, from both delivered PeopleSoft CM
and AP transactions, and outside payments, to the Financial Gateway. We then
used Gateways delivered approval and security framework to provide way for the
Treasury team to review payment totals and execute payment dispatch to the
banks.
Case Study 1:
Centralized Payment Dispatch
We evaluated, but ruled out the delivered flat file upload process for outside
payments, in favor of a more automated direct table load approach.
We created a new Financial Gateway source on the Source Registration

page. We then built a process that inserted the payment rows into the primary
Gateway payment table (PMT_DETAILT_TBL) and other transaction tables in
Gateway, and updated all counter values in the Counter table for our new
source, and the transaction counter on the Installation options table.
Case Study 2:
Direct Debits
Challenge:
In order to reduce ongoing technical maintenance and Bank fees, we wanted to
send ACH files to just one Bank, and instruct a single Bank to both send and pull
funds to/from other Banks. PeopleSoft Paycycle Manager does NOT support direct
debit transactions from Cash Managementthey are negative payments from the
Pay Cycle Manager perspective, and cannot be processed unless netted with
positive payments.
Solution:
We used Financial Gateways Drawdown functionality to allow PeopleSoft Cash
Management to send ACH files to a single Bank. EFT Requests with a payment
method of Wire in Cash Management support drawdowns, but Bank Transfers
with a payment method of ACH do not. We modified the Bank Transfer process to
accept Drawdowns.
Case Study 2:
Direct Debits
Cash Management Bank Account Transfer Processing
Models
Distributed Each Account Sends

Remote Bank 1 1 Main Bank 2 Remote Bank 2
Connection Connection Connection
Services Required Services Required Services Required
3 4
3 4
1 2
PeopleSoft
Consolidated One Account
1 2
1 Main Bank 2
Remote Bank 1 Remote Bank 2
Connection
NO Connectivity NO Connectivity
Services Required
3 4
Sends
1 2 3 4
PeopleSoft
Case Study 2:
Direct Debits
Distributed Model - Explanation of Transactions:

1: Movement of funds from Remote Bank 1 to Main Bank: To do this, PeopleSoft
sends a file to Remote Bank 1, in Remote Bank 1's format, using bank integration
services provided by Remote Bank 1. Remote Bank 1 then transmits a Demand
Credit (standard ACH payment) to the Main Bank.
2: Movement of Funds from Remote Bank 2 to Main Bank: Similar to the
transaction 1 above, PeopleSoft sends a file to Remote Bank 2, and Remote Bank 2
transmits a Demand Credit (standard ACH payment) to the Main Bank. Relies upon
integration services provided by Remote Bank 2.
3 and 4: Movement of Funds from Main Bank to Remote Banks: Similar to the
transaction 1 above, PeopleSoft sends files to the Main Bank, and the Main Bank
transmits a Demand Credit (standard ACH payment) to the Remote Banks. Relies
upon integration services provided by the Main Bank.
Case Study 2:
Direct Debits
Consolidated Model - Explanation of Transactions:

1 and 2: Movement of funds from Remote Banks to Main Bank: To do this,
PeopleSoft sends file to Main Bank, in Main Banks format, using bank integration
services provided by the Main Bank. The Main Bank then transmits a Demand
Debit (Direct Debit ACH) to the Remote Banks, which pulls the funds from the
Remote Banks into the Main Bank.
3 and 4: Movement of Funds from Main Bank to Remote Banks: PeopleSoft sends
files to the Main Bank, and the Main Bank transmits a Demand Credit (standard
ACH payment) to the Remote Banks. Relies upon integration services provided by
the Main Bank.
Case Study 2:
Direct Debits
Overview of Modifications
Updated the delivered PeopleCode on Bank Account Transfer pages to allow
drawdown processing for the ACH payment method, so that we could enter, and
save drawdown transactions and receive the proper accounting entries.
Updated the delivered PeopleSoft Financial Gateway Application Package for ACH
payments, to make the ACH CCD+ payments adhere to NACHA specifications for
drawdown processing (debit transactions with a Demand Debit code in the
resulting payment file). As delivered, the Application Package hard codes a
Demand Credit value, so this must be updated to be dynamic based on the
transaction data.
Case Study 3:
Fed Wires
Challenge:
We need to be able to transmit Fed Wire transactions, but PeopleSoft does not
deliver a Fed Wire payment format in either the FIN2025.sqr or Financial Gateway.
Solution:
We created a Fed Wire payment method for Financial Gateway. We cloned the
delivered PeopleSoft TR_FORMAT application package, the delivered ACH Base
Formatter, and the CCD Plus formatter, along with all related objects used by those,
and then modified them to fit the Fed Wire payment file format requirements.
Case Study 3:
Fed Wires
Clone the TR_FORMAT application package and all related objects.
Create a new layout code in the Layout Catalog, and specify the new
Application Package.
then add the Layout in a Bank Integration Layout, and select the payment
method on your external bank account.
Case Study 3:
Fed Wires
Thank you

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Financial Gateway: How to configure,

administer and deploy for all your EFT's

Session ID#: 100450

Statistics as of Sept. 30, 2014

58% Grant Thornton LLP2 (U.S.)

Statistics as of Dec. 31, 2014

How were the award nominees evaluated?

Grant Thornton's role in helping the customer adopt Oracle technology

Delivered payment formats that meet established banking

Its an alternative to the FIN2025.sqr EFT payment file creation process

Integrates with PeopleSoft Financials modules with minimal additional

Delivered NACHA Payment formats (CCD+ and CCD, PPD, CTX)

Specify the TR module in the Account Use

Users can specify a payment

Individual payments can be

Set your Company ID using the Define Layout Properties option.

We created a new Financial Gateway source on the Source Registration

Distributed Each Account Sends

Distributed Model - Explanation of Transactions:

Consolidated Model - Explanation of Transactions:

Clone the TR_FORMAT application package and all related objects.

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