Use the Banks window to enter bank information for bank branches with which you do business. Some Oracle Financial Applications, including Receivables and Payables, share bank definitions, although not every application uses all available bank information. Each bank branch can have multiple bank accounts, and each bank account you define can be associated with Payables payment documents and/or Receivables payment methods.

If you use Receivables, use the Banks window to define your internal banks, which you use for receipts, and external banks, which are your customers’ banks with which you do business. If you use Receivables only, you do not need to define Payables payment documents. If you use Payables, use the Banks window to define your internal bank accounts from which you disburse payments. For each internal bank account, you can define payment documents for checks, electronic payments (EFT and EDI), wire transfers, and other payment methods.

You can also enter supplier bank information for your suppliers to which you send electronic payments. If you use Payables only, you do not need to define clearing houses. If you are using Oracle Cash Management, you need to define a Bank Errors Account, a Bank Charges Account, and a Cash Clearing Account for each bank account you plan on reconciling by using Cash Management. If you use Payables, you can override these accounts for each payment document you define.

Define clearing houses to record banks that process electronic versions of your receipt information which you send to them. These clearing institutions then create copies of your customer receipt information which they forward to each of your remittance banks.