Virtual accounts
Definition
A virtual account is a numbered reference that can be used for cash receipts and/or payments. It has been set up so that companies can save time in their bank reconciliation. This reference is structured like a classic IBAN with a dedicated counter number; this reference is called VIBAN (Virtual International Bank Account Number).
Advantages of setting up virtual accounts
1. The implementation of virtual accounts favours the reconciliation of corporate customers. Let's detail this implementation:
- The bank generates VIBANs attached to a single real account
- The client allocates and transmits a VIBAN to each of his own clients
E.g., Customer 1 receives VIBAN 1, Customer 2 receives VIBAN 2. - The customer's client sends his payment indicating the VIBAN as the account to be credited
- The bank executes the payments which are posted to the customer's real account. The account statement is produced with the VIBAN
- The account statement is integrated into the customer's ERP system, with VIBAN used as the reconciliation key, which facilitates bank reconciliation.
2. The implementation of virtual accounts also facilitates the rationalization of the account structure of corporate customers. Let's take a closer look at this implementation
- The bank generates VIBANs attached to a single real account.
- The customer allocates a VIBAN per entity (e.g., Entity 1 in Paris receives VIBAN 1, entity 2 in Marseille receives VIBAN 2). There are thus fewer real accounts since each entity (Paris and Marseille) no longer has a real account, but a VIBAN, itself attached to a real account.
- The client sends a VIBAN to each of his own clients.
- The customer's customers send their payments indicating the VIBAN as the account to be credited.
- The bank executes the payments which are posted to the customer's real account. The account statement is produced with the VIBAN
- The account statement is integrated into the customer's ERP system, with VIBAN used as the reconciliation key.