peoplesoft financial gateway: duke energy’s story
DESCRIPTION
PeopleSoft Financial Gateway: Duke Energy’s Story. Presented by: Wes Huffman, IT Architecture and Project Management Brian Buzzard, PeopleSoft Application Support. Agenda. Company Profile PeopleSoft at Duke Energy Payment Processing Past and Present Implementing Financial Gateway - PowerPoint PPT PresentationTRANSCRIPT
PeopleSoft Financial Gateway: Duke Energy’s Story
Presented by: Wes Huffman, IT Architecture and Project ManagementBrian Buzzard, PeopleSoft Application Support
Agenda
Company ProfilePeopleSoft at Duke EnergyPayment Processing Past and PresentImplementing Financial GatewayFuture Integration PlansQuestions
Agenda
Company ProfilePeopleSoft at Duke EnergyPayment Processing Past and PresentImplementing Financial GatewayFuture Integration PlansQuestions
Company Profile• Over 150 years of service• Approximately 4 million
customers• Fortune 500• $59 billion in assets
(as of 12.31.2010)• Stock dividends for over 80
years• Traded on NYSE as DUK• Dow Jones Sustainability
Index
Company Profile (Cont.)
• Total U.S. Generating Capacity: • Approximately 35,400 megawatts
(owned capacity)• Size of Service Territory:
• Approximately 50,000 square miles• Utility Customers (as of 12.31.10):
• Total Electric – Approximately 4M• 500,000 retail gas customers
• Generation facilities in North, Central and South America
Company Profile (Cont.)North American Generation Facilities
Company Profile (Cont.)Duke Energy International Facilities
Agenda
Company ProfilePeopleSoft at Duke EnergyPayment Processing Past and PresentImplementing Financial GatewayFuture Integration PlansQuestions
PeopleSoft at Duke Energy
1997•HR Version 5.0
1998•Financials 6.0•HR 6.0
2000•Financials 7.5•HR 7.5 •Expenses 7.5
2002•Financials 8.0•HR 8.0•Expenses 8.0
2003•Supply Chain 8.0
2007•Financials 8.9•Supply Chain 8.9
2009•Expenses 8.9
2010•Financial Gateway Integration with all banking institutions
2011• Implement With-holding and 1099 Reporting
PeopleSoft at Duke Energy (Cont.)
Current State:• Release: Version 8.9 (Through Bundle 36)• PeopleTools 8.50• Database Platform: Oracle 11g on AIX 6.1• Web, Application, Process Scheduler
(nVision/Crystals)• Windows 2008
• Process Scheduler for Batch (SQR, COBOL, AE)• AIX 6.1• Cybermation ESP Scheduling Agent
Module Transaction Type Volume (Approximate)
General Ledger
Journals 19K/MonthJournal Lines 1.6M/Month
Accounts Payable
Vendors 16K (2010)Payments 13K/MonthElectronic Payments (via Financial Gateway) 7400/Month
Accounts Receivable Items 1300/Month
Billing Bills 1300/MonthProject Costing Projects 19K/Month
Travel and Expenses Expense Reports 9100/Month
PeopleSoft at Duke Energy (Cont.)
Agenda
Company ProfilePeopleSoft at Duke EnergyPayment Processing Past and PresentImplementing Financial GatewayFuture Integration PlansQuestions
Payment Processing Past and Present
Duke Energy’s payment process has evolved from a very customized, manual and deeply integrated process to one that exclusively uses Financial Gateway for electronic payments.
• When PeopleSoft 8.9 was implemented, Duke Energy used a highly customized set of processes to integrate with the existing Mainframe architecture:• EFT payments produced by a customized version
of the FIN2025 SQR to meet bank requirements• Check payment data extracted via custom process
and sent to the Mainframe• Wire payment information produced using a
custom Cobol process
Payment Processing Past and Present (Cont.)
Payment Processing Past and Present (Cont.)
Payment Processing Past and Present (Cont.)
• Following the merger with Cinergy, Duke Energy implemented Financial Gateway in conjunction with the previous process to:• Deliver a mechanism for sending ACH payment,
Wire payment, and Positive Pay information to PNC Bank
• Use delivered functionality for processing payment acknowledgement files
• Provide a cost-effective solution for integration understanding the long-term goal of deactivating the Mainframe and PeopleSoft 8.0 applications
Payment Processing Past and Present (Cont.)
Payment Processing Past and Present (Cont.)
• When transaction activity moved from legacy applications in 2010, a project was chartered in conjunction to:• Setup new integrations using Financial Gateway
functionality with new and existing banks not yet integrated for ACH payment, Wire payment, Positive Pay file, and Payment Acknowledgement file processing
• Create a new process for capturing check information in an EDI formatted file and transmitting to the third-party check vendor
Payment Processing Past and Present (Cont.)
Agenda
Company ProfilePeopleSoft at Duke EnergyPayment Processing Past & PresentImplementing Financial GatewayFuture Integration PlansQuestions
Implementing Financial Gateway
• Expected Benefits with Financial Gateway:• Reduction in maintenance and support costs by
removing customized processes• Improvements in process efficiency by eliminating
the need for manual intervention• Decrease in cost to implement by using standard
file layouts and configuration• Lowered administration costs with user-friendly
interfaces for managing payment information
Implementing Financial Gateway (Cont.)
• Duke’s implementations included:• An approach to use delivered file layouts for
payment and acknowledgement files• Adding new and updating existing bank accounts
for Financial Gateway settlement• Security for the Financial Gateway components for
managing payment and acknowledgement information
• An approach for file transmission that included Secured VPN connections and/or Secure File Transfer Protocol (SFTP)
Implementing Financial Gateway (Cont.)
• The following challenges were encountered:• Bank layout requirements differed from the
delivered layouts, but met NACHA standards• Bank requirements for processing electronic
payments are different between institutions• Lack of delivered layout and functionality to
support Positive Payment file processing• Third-party batch scheduling tool required custom
processes to invoke delivered ones• Internal and bank requirements for file transfer
were not supported by Integration Broker
Implementing Financial Gateway (Cont.)
• Benefits realized include:• All regular payment processing is executed in the
batch schedule without manual intervention• Payment administration boasts new simplified
business processes for resolving payment errors and creating payment reissues
• The ability to make payments through intermediary banks
• Reduction in batch timings of over 17 percent• No post-implementation issues or defects relating
to Financial Gateway
Implementing Financial Gateway (Cont.)
• Lessons learned from implementation:• Initial account setup is critical for configuring the
bank account integration• Integrated testing requires the majority of the time
from the total project lifecycle• Bank layouts need to be reviewed early in the
project to verify alignment with delivered layouts• The Payment Administration business process will
change, but should be more efficient
Implementing Financial Gateway (Cont.)
• Lessons learned from implementation:• Each of the banking institutions where Duke
Energy has checking accounts requested Positive Pay information be delivered with the ACH and Wire payment files in the NACHA 828 format
• Some banking institutions EDI file processors are setup and configured to produce different acknowledgement data
• Creating new file layouts does not negatively impact delivered functionality and is easy to implement
Agenda
Company ProfilePeopleSoft at Duke EnergyPayment Processing Past and PresentImplementing Financial GatewayFuture Integration PlansQuestions
Future Integration Plans
Even though there are no immediate plans for integrating with new banking institutions, Financial Gateway gives Duke Energy the ability to do so quickly and cost-effectively.
Agenda
Company ProfilePeopleSoft at Duke EnergyPayment Processing Past and PresentImplementing Financial GatewayFuture Integration PlansQuestions
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