OLE may be configured to allow bank codes to be configured on individual documents. The system also allows an institution to post offset entries to a bank-specific account and object code (defined on the Bank Maintenance document.)
When this type of configuration is used, it changes the way the PDP interacts with payments related to the documents that make disbursements (specifically, the payment request and disbursement voucher).
Customers may also choose to specify a bank code in their XML payment files.
Several different parameters control flexible bank specification functionality in OLE.
The functionality itself may be turned on or off using the FLEXIBLE_BANK_SPECIFICATION_IND parameter. If this parameter is set to Y, the functionality is turned on. In this case, documents defined in the parameter BANK_CODE_DOCUMENT_TYPES display a Bank Code field. A third parameter—DEFAULT_BANK_BY_DOCUMENT_TYPE—is then used to define the default Bank Code for each document type for which your institution is using this functionality.
The Bank Code value is set at the document level and applies to all accounting lines on a document.
In the default configuration, only users who are members of the OLE-SYS Operations role may modify the Bank Code field on an OLE document.
When uploading a payment file to the PDP, Bank Code is optional. If payments do not specify a bank code, the PDP assigns the code based on the default values found on the associated Customer Profile for ACH and check disbursements. If an uploaded payment file contains bank codes, these codes must be valid or the system will reject the file during the upload process. Corrections must be made before the file can be successfully uploaded for processing.
When payments are formatted, the PDP attempts to use the bank code specified on the payment unless it is deemed to be inappropriate for this specific disbursement.
An example of an inappropriate bank code might be when an ACH bank was specified on the payment but the PDP determines that the disbursement will be made via check because the payment has been flagged as an immediate print, requiring an attachment, or requiring special handling. In these cases, the PDP must generate a check. Another example is when an ACH bank was specified but there is no payee ACH Account record for the payee.
In the event that an ACH bank code is used but the PDP has no ACH information for the payee, the system uses the default CHK bank code instead. However, if the PDP contains ACH information for that payee, the system still disburses a payment with a CHK bank code.
For payments for which no bank code is supplied, the PDP will use the bank code associated with the appropriate disbursement type (ACH or check) on the Customer Profile.
Bank code is also considered when the PDP attempts to combine payments. Only payments being disbursed from the same bank are eligible to be combined.
Bank codes may be deactivated, indicating they are no longer to be used. If a specified bank code is inactive, the PDP uses a continuation bank code defined on the Bank Maintenance table. This situation might occur if the bank code specified on the payment at the time of formatting was inactive or if the bank code in the Customer Profile was inactive.
When this functionality is enabled, cancelling and re-issuing a payment in the PDP clears the payee bank routing number and the payee bank account number but does not clear the disbursement bank code.
If the disbursement bank code is inactive, the bank code is re-assigned during the format process using the appropriate continuation bank code. To identify situations like this, use the Payment Bank History Lookup.
If your institution is not using this functionality, then cancelling and re-issuing a payment in the PDP clears the payee bank routing number, the payee bank account number and the disbursement bank code.
When the PDP generates ledger entries for formatted, cancelled or cancelled and re-issued payments, it generates extra entries to redistribute the offsets to the account and object code specified on the bank code associated with this disbursement.
