2.3 Bank Account Master Data: Banks, Branches, Internal Accounts and Security

Payables can't pay anyone until an internal bank account exists, is enabled for Payables, is accessible to the paying business unit, and (for checks) has check stock defined. The published objective Manage Bank Account Master Data covers this setup, which lives in Cash Management and Banking. Supplier (external) bank accounts are maintained on the supplier's Payments tab and covered in sections 2.1 and 6.1.

The bank account model

Oracle builds internal bank accounts on a three-part bank account model:

The point of the model is to define each bank account once and then grant access to several business units, functions and users. You don't copy the account into every business unit. The Inactivates Banks and Bank Branches program inactivates banks and branches that no longer have any active internal or external accounts.

Ownership, use and business unit access

• Owner. Every internal bank account is owned by a legal entity. A business unit can't own one.
• Account use. Mark the account for Payables, Receivables and/or Payroll. Payroll accounts are identified by legal entity. Payables and Receivables accounts are identified by business unit.
• Business unit access. Before Payables or Receivables can use the account, you select the right use and grant access to one or more business units. Oracle's rule: you can only assign access to the business units that use the same ledger as the bank account's owning legal entity. Add business unit access first when you create an account for Payables or Receivables.

So one account owned by US Corp can be shared by every US business unit on the US ledger. A UK business unit on a GBP ledger can't be granted access to it.

Control settings and general ledger accounts

Control settings on the account include the account currency, and whether multiple currencies are allowed for payments. The account also holds its general ledger accounts:

The GL Cash Account Segments option lets reconciliation match journal lines posted to several cash account combinations that share the same natural account and other selected segments. For example, choose Account and Subaccount so lines on different cost centers but natural account 1110 can be reconciled.

When payments are accounted (at issue, at clearing, or both) isn't set on the bank account. It is the payment accounting option on Manage Payment Options for the business unit (sections 6.1 and 7.4).

Payment documents for printed payments

To print checks, you first create a payment document (check stock) on the disbursement bank account. Oracle's check-payments walkthrough lists these fields:

• Payment Document name, for example Payments Numbered Check Stock.
• Paper Stock Type: Numbered Stock or Blank Stock.
• Format, for example Standard Check Format (Stub after Payment). Use the same format as the printed payment process profile.
• First Available Document Number and Last Available Document Number.
• An optional Checkbooks section for internal tracking of checkbooks received from the bank. These details don't print on the checks.

Electronic payments work differently. They are produced by a payment process profile with processing type Electronic and sent through a payment system and transmission configuration. Electronic payments don't need a payment document. If an EFT run fails, look at the profile, payment system and transmission setup, not check stock.

The three layers of bank account security

Oracle describes bank account security as account use security, account access security and user and role security:

1. Account use. Is the account enabled for Payables at all?
2. Account access. Does the transaction's business unit have access to the account?
3. User and role security. The Secure by users and roles setting defaults to No. When it's No, any Payables user whose business unit has access can use the account. When it's Yes, the user must be named on the account or carry a role assigned to it, as well as having business unit access.

Two related function-security points:

• Setting up banks, branches and accounts needs the Cash Management Administration duty role.
• Changing the user and role security needs Manage Bank Account Security (CE_MANAGE_BANK_ACCOUNT_SECURITY_PRIV). To keep most administrators off the Security tab, copy the duty role and remove that privilege.

Optionally, the opt-in Legal Entity-Based Data Access for Bank Account Setup limits who can create and maintain bank accounts. It uses the user's legal entity security context on Manage Data Access for Users, for example the Cash Manager role with Legal Entity = Vision Operations. This controls account maintenance. It doesn't decide which business units can pay from the account.

Troubleshooting: "the bank account isn't in my list"

Check in this order:

1. Is the account enabled for Payables use?
2. Does the paying business unit have business unit access? Is it on the same ledger as the owner?
3. If Secure by users and roles is Yes, is the user or one of the user's roles listed on the account?
4. For checks, is there an active payment document with available numbers, and is it not locked by another payment file?
5. Do the usage rules of the payment process profile allow this bank account (section 6.2)?