PeopleSoft Financial Gateway: Duke Energy’s Story Presented by: Wes Huffman, IT Architecture and...

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

Future Integration Plans

Questions

Agenda

Company Profile

PeopleSoft at Duke Energy

Payment Processing Past and Present

Implementing Financial Gateway

Future Integration Plans

Questions

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 Profile

PeopleSoft at Duke Energy

Payment Processing Past and Present

Implementing Financial Gateway

Future Integration Plans

Questions

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 TypeVolume

(Approximate)

General Ledger

Journals 19K/Month

Journal Lines 1.6M/Month

Accounts Payable

Vendors 16K (2010)

Payments 13K/Month

Electronic Payments (via Financial Gateway) 7400/Month

Accounts Receivable

Items 1300/Month

Billing Bills 1300/Month

Project Costing

Projects 19K/Month

Travel and Expenses

Expense Reports 9100/Month

PeopleSoft at Duke Energy (Cont.)

Agenda

Company Profile

PeopleSoft at Duke Energy

Payment Processing Past and Present

Implementing Financial Gateway

Future Integration Plans

Questions

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 Profile

PeopleSoft at Duke Energy

Payment Processing Past & Present

Implementing Financial Gateway

Future Integration Plans

Questions

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 Profile

PeopleSoft at Duke Energy

Payment Processing Past and Present

Implementing Financial Gateway

Future Integration Plans

Questions

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 Profile

PeopleSoft at Duke Energy

Payment Processing Past and Present

Implementing Financial Gateway

Future Integration Plans

Questions

Questions?

Thank You

Contact Information

Wes Huffman

Wes.Huffman@duke-energy.com

Brian Buzzard

Brian.Buzzard@duke-energy.com

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