By Deepa Saoji on May 21, 2012
To comply with the new Euro zone payments requirements and allow customers to leverage the value of a singular payments platform, PeopleSoft Global Payroll leverages the Financial Gateway, which is part of the Cash Management product within the PeopleSoft Financials suite.
The Financial Gateway is a robust and flexible payment hub that manages large volumes of payments, in several formats. One of the supported formats is the SEPA Credit Transfer. This solution will make SEPA implementation, compliance and maintenance easier over time, as more Euro zone payments will transition to SEPA rules in the future.
The SEPA (Single European Payment Area) project is an additional step in the construction of a unified European market, following the creation of the Euro Zone in 1999.The goal is to standardize the payment format used in cross border payments. This provides flexibility, security and reduced costs as well as enabling increased trade and investments in the SEPA area. The SEPA format was introduced in 2008 and will become mandatory for any Euro credit transfer from 2012 onwards. Direct Debit payment messages have also been introduced and will become mandatory in the coming years.
In order to reduce current and future SEPA changes impact on payroll processing, Oracle has fully leveraged the existing Financial Gateway capabilities to generate payment files and manage interactions with banks, while minimal changes have been implemented in the PeopleSoft Global Payroll product to prepare those payments.
The first SEPA update delivered by Oracle enables customers to manage:
- Credit Transfers
- in Euros
- complying with general SEPA formatting and rules
The PeopleSoft Global Payroll product has been integrated with the Cash Management module from the PeopleSoft Financials Suite through PeopleTools Integration Broker 8.51.The PeopleSoft Global Payroll Core banking process prepares all the payment data, while the Financial Gateway feature from the Cash Management product will:
- Format the payment data based on country Setup
- Produce the SEPA payment file
- Interact with the banks to provide for bi-directional, real time communication (send the payment file and receive the response from banks)
- Send acknowledgements back to Global Payroll
It is critical to provide audit support in any payment process. To support that effort, the integration between Global Payroll and the Financial Gateway provides the following:
- A delivered report can be run from PeopleSoft Global Payroll for data validation before publishing data to Financial Gateway.
- Payment statuses and errors are sent back from Financial Gateway to PeopleSoft Global Payroll, and can be viewed through a new page in a Global Payroll component.