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Copyright © 2010, Oracle. All rights reserved.

Disclaimer

This document contains proprietary information and is protected by copyright and other intellectual property laws. You may copy andprint this document solely for your own use in an Oracle training course. The document may not be modified or altered in any way.Except where your use constitutes "fair use" under copyright law, you may not use, share, download, upload, copy, print, display,perform, reproduce, publish, license, post, transmit, or distribute this document in whole or in part without the express authorizationof Oracle.

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Oracle is a registered trademark of Oracle Corporation and/or its affiliates. Other names may be trademarks of their respective

owners.

Author

Mathew Daniel, Melanie Heisler

Technical Contributors and Reviewers

David Barnacle, Byung-Hyun Chung, Ivy Farren, Suzanne Miller, Parthasawarthy Ramaratnam,

Lata Sundar, Kathryn Wohnoutka

This book was published using: Oracle Tutor



Copyright © Oracle 2010. All rights reserved.

R12.x Oracle Cash Management Fundamentals Table of Contentsi

Table of Contents

Oracle Cash Management Overview .............................................................................................................1-1 Oracle Cash Management Overview........... .......... ........... ........... ........... .......... ........... ........... ........... .......... ..1-3 Objectives......................................................................................................................................................1-4

Agenda...........................................................................................................................................................1-5 Overview .......................................................................................................................................................1-6 Cash Management Integration.......................................................................................................................1-7 Overview of Bank Account Model................................................................................................................1-8 Setting Up for Reconciliation .......... ........... ........... ........... .......... ........... ........... ........... ........... ........... .......... ..1-9 Reconciliation................................................................................................................................................1-10 Reconciliation: Bank Statement Information.................................................................................................1-11 Reconciliation: Integration ............................................................................................................................1-12 Reconciliation: Oracle Receivables and Payables ........... ........... ........... .......... ........... ........... ........... .......... ...1-13 Reconciliation: Oracle Payroll, Oracle Treasury, and Oracle General Ledger..............................................1-14 Reconciliation: Oracle Payments...................................................................................................................1-16 Cash Forecasting ...........................................................................................................................................1-17 Cash Forecasting (Continued) .......................................................................................................................1-18 Cash Positioning............................................................................................................................................1-19 Cash Pools .....................................................................................................................................................1-20 Oracle Cash Management Reports and Programs .........................................................................................1-21 Quiz ...............................................................................................................................................................1-22 Summary........................................................................................................................................................1-26

Cash Management Security ............................................................................................................................2-1 Cash Management Security ...........................................................................................................................2-3 Objectives......................................................................................................................................................2-4 Agenda...........................................................................................................................................................2-5 MOAC and Cash Management......................................................................................................................2-6 Multiple Organizations Access Control Setup – Set Profile Options .......... ........... ........... ........... ........... ......2-7 Cash Management Security Model................................................................................................................2-9 Bank Account Maintenance Security ............................................................................................................2-10

Bank Account Access Security......................................................................................................................2-12 Cash Management Security Profiles and Reconciling Bank Statements ........... ........... ........... ........... ...........2-13 Cash Management Security Components ........... ........... .......... ........... ........... ........... ........... .......... ........... .....2-14 Setting Up Security........................................................................................................................................2-16 Creating Bank Account Security Grants........................................................................................................2-18 Quiz ...............................................................................................................................................................2-19 Summary........................................................................................................................................................2-23

Setting Up Oracle Cash Management............................................................................................................3-1 Setting Up Oracle Cash Management............................................................................................................3-3 Objectives......................................................................................................................................................3-4 Agenda...........................................................................................................................................................3-5 Overview .......................................................................................................................................................3-6 Setting Up Oracle General Ledger.................................................................................................................3-7

Setting Up Oracle Payables ...........................................................................................................................3-8 Setting Up Oracle Receivables ........... ........... ........... ........... .......... ........... ........... ........... ........... .......... ..........3-10 Setting Up Oracle Payroll..............................................................................................................................3-11 Setting Up Oracle Treasury ...........................................................................................................................3-12 Setting Up Oracle Cash Management: System Parameters .......... ........... ........... ........... ........... .......... ...........3-13 Setting up Oracle Cash Management: Bank Transaction Codes ...................................................................3-15 Setting Up Oracle Cash Management: Bank Statement Open Interface........................................................3-16 Setting Up Oracle Cash Management: Reconciliation Open Interface..........................................................3-17 Setting Up Oracle Cash Management: External Cashflow Open Interface ........... ........... ........... ........... .......3-19




R12.x Oracle Cash Management Fundamentals Table of Contentsii

Setting Up Oracle Cash Management: Sequential Document Numbering .......... ........... ........... ........... .........3-20 Quiz ...............................................................................................................................................................3-21 Summary........................................................................................................................................................3-25

Creating Bank Accounts .................................................................................................................................4-1 Creating Bank Accounts................................................................................................................................4-3 Objectives......................................................................................................................................................4-4 Agenda...........................................................................................................................................................4-5

Overview of Bank Account Model................................................................................................................4-6 Overview of Bank Account Model (Continued)............................................................................................4-7 Defining Banks..............................................................................................................................................4-9 Defining Bank Branches................................................................................................................................4-11 Linking Bank and Branches in Oracle Treasury............................................................................................4-12 Creating Bank Accounts: Selecting Branch, Legal Entities, and Functions .......... ........... ........... .......... ........4-13 Creating Bank Accounts: Adding Account Attributes...................................................................................4-14 Creating Bank Accounts: Adding Account Controls.....................................................................................4-15 Creating Bank Accounts: Adding Account Access .......... ........... ........... .......... ........... ........... ........... .......... ..4-17 Creating Bank Accounts: Adding Account Contacts.....................................................................................4-18 Adding Bank Account to Organization Payment Method in Oracle Payroll .......... ........... ........... ........... ......4-19 Defining Bank Transaction Codes.................................................................................................................4-21 Maintaining Bank Account Signing Authorities............................................................................................4-23 Bank Account Signing Authorities: Setting Up Prerequisites ........... ........... .......... ........... ........... .......... .......4-24 Bank Account Signing Authorities: Entering Signing Authority ..................................................................4-25 Bank Account Signing Authorities: Updating Signing Authority ........... ........... ........... ........... ........... ..........4-27 Bank Account Signing Authorities: Viewing Signing Authority ..................................................................4-28 Quiz ...............................................................................................................................................................4-29 Summary........................................................................................................................................................4-33

Bank Transfers ................................................................................................................................................5-1 Cash Transactions..........................................................................................................................................5-3 Objectives......................................................................................................................................................5-4 Agenda...........................................................................................................................................................5-5 Overview .......................................................................................................................................................5-6 Setting Up Bank Transfers.............................................................................................................................5-8 Bank Transfers Process Flow ........................................................................................................................5-9

Creating a Bank Transfer...............................................................................................................................5-10 Authorizing a Bank Transfer .........................................................................................................................5-11 Integrating with Payments ........... ........... .......... ........... ........... .......... ........... .......... ........... .......... .......... .........5-12 Creating Journal Entry Rules.........................................................................................................................5-13 Setting Up Transaction Subtypes...................................................................................................................5-14 Setting Up Payment Templates .....................................................................................................................5-15 Cashflows ......................................................................................................................................................5-16 Creating Bank Statement Cashflows from Bank File ........... ........... .......... ........... ........... .......... ........... .........5-17 Creating Bank Statement Cashflows from Bank File (continued).................................................................5-19 Quiz ...............................................................................................................................................................5-21 Summary........................................................................................................................................................5-25

Managing Bank Statements............................................................................................................................6-1 Managing Bank Statements ........... .......... ........... ........... .......... ........... ........... .......... ........... .......... .......... .......6-3

Objectives......................................................................................................................................................6-4 Agenda...........................................................................................................................................................6-5 Overview .......................................................................................................................................................6-6 Entering Bank Information.......... ........... ........... .......... ........... ........... .......... ........... ........... ........... .......... .......6-7 Loading the Bank Statement Open Interface.................................................................................................6-8 Loading Bank Statement Open Interface: Using the Bank Statement Loader Program ........... ........... ..........6-9 Loading Bank Statement Open Interface: Using a Custom Loader Program........... ........... ........... ........... ....6-10 Loading Bank Statement Open Interface: Intra-Day Bank Statement Loader Program........... ........... ..........6-11 Loading Bank Statement Open Interface: XML Bank Statements .......... ........... .......... ........... ........... ...........6-12




R12.x Oracle Cash Management Fundamentals Table of Contentsiii

Importing Bank Statements ...........................................................................................................................6-13 Importing Bank Statements: Bank Statement Validation .......... ........... ........... ........... ........... .......... ........... ...6-14 Reviewing and Correcting Bank Statement Interface Errors.........................................................................6-15 Entering Bank Statements Manually .......... ........... ........... ........... ........... .......... ........... ........... ........... .......... ..6-16 Entering Bank Statements Manually (Continued) .......... ........... .......... ........... .......... ........... ........... .......... .....6-17 Quiz ...............................................................................................................................................................6-18 Summary........................................................................................................................................................6-22

Reconciling Bank Statements .........................................................................................................................7-1 Reconciling Bank Statements.......... .......... ........... ........... ........... ........... .......... ........... ........... .......... ........... ...7-3 Objectives......................................................................................................................................................7-4 Agenda...........................................................................................................................................................7-6 Overview .......................................................................................................................................................7-9 Overview (Continued) ...................................................................................................................................7-11 Single European Payments Area (SEPA) Credit Transfer.............................................................................7-14 SEPA Credit Transfer: Bank Identifier Code (BIC) Validation ........... ........... .......... ........... ........... ........... ...7-15 SEPA Credit Transfer: International Bank Account Number (IBAN) Validation.........................................7-17 SEPA Credit Transfer: Enable Reconciliation at Payment Group Level.......................................................7-18 SEPA Credit Transfer: Reconciliation logic for Manual Reconciliation.......................................................7-19 SEPA Credit Transfer: Reconciliation logic for Automatic Reconciliation .......... ........... ........... ........... .......7-20 Reconciling Bank Statements Automatically ................................................................................................7-21 Reconciling Sweep Transactions...................................................................................................................7-22 Reconciling Sweep Transactions (Continued)...............................................................................................7-23 Defining Reconciliation Tolerances .......... ........... ........... .......... ........... ........... .......... ........... ........... ........... ...7-24 Multicurrency Matching and Clearing...........................................................................................................7-25 Value Date Support .......................................................................................................................................7-26 Reviewing Reconciliation Errors...................................................................................................................7-27 Reconciling Bank Statements Manually........................................................................................................7-28 Reviewing Reconciled Transactions..............................................................................................................7-29 Unreconciling Transactions...........................................................................................................................7-30 Creating Payments and Receipts ...................................................................................................................7-31 Creating Miscellaneous Transactions .......... ........... ........... .......... ........... .......... ........... ........... ........... .......... ..7-32 Recording Exceptions....................................................................................................................................7-33 Entering Reversals.........................................................................................................................................7-34 Reconciling Corrections and Adjustments to Bank Errors: Reversal ........... ........... ........... ........... .......... ......7-35 Reconciling Corrections and Adjustments to Bank Errors: Adjustment........................................................7-36 AutoReconciliation Matching........................................................................................................................7-37 Manual Reconciliation Matching ..................................................................................................................7-38 Manually Clearing and Unclearing................................................................................................................7-39 Transferring Bank Reconciliation Transactions to Your General Ledger .....................................................7-40 Archiving and Purging...................................................................................................................................7-41 Archiving and Purging: Archiving and Purging Automatically ....................................................................7-42 Summary........................................................................................................................................................7-43 Quiz ...............................................................................................................................................................7-44 Summary........................................................................................................................................................7-48

Cash Pools ........................................................................................................................................................8-1 Cash Pools .....................................................................................................................................................8-3 Objectives......................................................................................................................................................8-4 Agenda...........................................................................................................................................................8-5 Overview .......................................................................................................................................................8-6 Creating Cash Pools.......................................................................................................................................8-7 Viewing and Updating Cash Pools .......... .......... ........... ........... ........... ........... .......... ........... ............ .......... .....8-8 Quiz ...............................................................................................................................................................8-9 Summary........................................................................................................................................................8-13

Cash Positioning ..............................................................................................................................................9-1 Cash Positioning............................................................................................................................................9-3




R12.x Oracle Cash Management Fundamentals Table of Contentsiv

Objectives......................................................................................................................................................9-4 Agenda...........................................................................................................................................................9-5 Overview .......................................................................................................................................................9-6 Creating Cash Position Worksheets...............................................................................................................9-7 Creating Cash Position Worksheets: Source Transaction Dates....................................................................9-8 Creating Cash Position Worksheets: Overdue Transactions..........................................................................9-9 Generating Cash Positions From Worksheets................................................................................................9-10 Generating Cash Positions From Worksheets (Continued) ...........................................................................9-11 Generating a Cash Leveling Proposal............................................................................................................9-14 Generating a Cash Leveling Proposal (Continued) .......................................................................................9-15 Viewing Cash Position Results......................................................................................................................9-16 Viewing Cash Position Results (Continued) .................................................................................................9-18 Exporting Cash Position Results to Your Spreadsheet Application ..............................................................9-19 Viewing Cash Positions in Discoverer .......... ........... .......... ........... .......... ........... ........... .......... ............ ..........9-20 Quiz ...............................................................................................................................................................9-21 Summary........................................................................................................................................................9-25

Cash Forecasting..............................................................................................................................................10-1 Cash Forecasting ...........................................................................................................................................10-3 Objectives......................................................................................................................................................10-4 Agenda...........................................................................................................................................................10-5 Overview of Cash Forecasting.......................................................................................................................10-6 Sources for Cash Forecasting ........................................................................................................................10-7 Cash Forecasting and Cash Positioning.........................................................................................................10-9 Defining a Cash Forecast Template...............................................................................................................10-10 Generating a Cash Forecast ...........................................................................................................................10-11 Generating a Cash Forecast: Multicurrency Forecasts ..................................................................................10-12 Modifying a Cash Forecast............................................................................................................................10-13 Exporting Cash Forecasts to Your Spreadsheet Application.......... .......... ........... .......... ........... ........... ..........10-14 Implementation Considerations.......... ........... ........... .......... ........... .......... ........... ........... .......... ............ ..........10-15 Using Cash Forecasting Reports....................................................................................................................10-16 Quiz ...............................................................................................................................................................10-18 Summary........................................................................................................................................................10-22

Accounting Events ...........................................................................................................................................11-1

Accounting Events.........................................................................................................................................11-3 Objectives......................................................................................................................................................11-4 Agenda...........................................................................................................................................................11-5 Overview of Accounting and Cash Management ........... ........... ........... .......... ........... ........... ........... ........... ...11-6 Oracle Subledger Accounting........................................................................................................................11-7 Oracle Subledger Accounting Integration .....................................................................................................11-8 Subledger Accounting: Key Concepts...........................................................................................................11-10 Subledger Accounting: Key Concepts in Cash Management ........... .......... ........... .......... ........... ........... ........11-11 Subledger Accounting: Setup and Process ....................................................................................................11-13 Subledger Accounting Process for Cash Management........... ........... ........... ........... .......... ........... ........... .....11-14 Creating Manual Journal Entries ........... .......... ........... ........... ........... ........... .......... ........... .......... ........... ........11-16 Quiz ...............................................................................................................................................................11-17 Summary........................................................................................................................................................11-21

Balances and Interest ......................................................................................................................................12-1 Balances and Interest.....................................................................................................................................12-3 Objectives......................................................................................................................................................12-4 Agenda...........................................................................................................................................................12-5 Agenda (Continued) ......................................................................................................................................12-6 Overview .......................................................................................................................................................12-7 Overview (Continued) ...................................................................................................................................12-8 Tracking Bank Balances by Account.............................................................................................................12-9 Tracking Bank Balances for Multiple Accounts............................................................................................12-10




R12.x Oracle Cash Management Fundamentals Table of Contentsv

Bank Balance Types......................................................................................................................................12-11 Viewing Actual, Historic, and Projected Balances........................................................................................12-12 Entering Account Balances Manually or Uploading Automatically..............................................................12-13 Creating and Assigning Interest Rate Schedules to Bank Accounts..............................................................12-14 Reusing Interest Rate Schedules....................................................................................................................12-16 Calculating Interest on Bank Accounts .........................................................................................................12-17 Creating Reports for Account Balances and Interest Calculations .......... .......... ........... ........... ........... ...........12-18 Creating Reports for Account Balances and Interest Calculations (Continued)............................................12-20 Quiz ...............................................................................................................................................................12-21 Summary........................................................................................................................................................12-25




R12.x Oracle Cash Management Fundamentals Table of Contentsvii

Preface

Profile

Before You Begin This Course

• Thorough knowledge of Oracle Applications.

• Working experience with Cash Management.

Prerequisites

• There are no prerequisites for this course.

How This Course Is Organized

R12.x Oracle Cash Management Fundamentals is an instructor-led course featuring lecture and

hands-on exercises. Online demonstrations and written practice sessions reinforce the conceptsand skills introduced.




R12.x Oracle Cash Management Fundamentals Table of Contentsviii

Related Publications

Oracle Publications

Title Part Number

Oracle Cash Management User Guide E13483-03

Additional Publications

• System release bulletins

• Installation and user’s guides

• Read-me files

• International Oracle User’s Group (IOUG) articles

• Oracle Magazine




R12.x Oracle Cash Management Fundamentals Table of Contentsix

Typographic Conventions

Typographic Conventions in Text

Convention Element Example

Bold italic Glossary term (ifthere is a glossary)

The algorithm inserts the new key.

Caps and

lowercase

Buttons,

check boxes,

triggers,

windows

Click the Executable button.

Select the Can’t Delete Card check box.

Assign a When-Validate-Item trigger to the ORD block.

Open the Master Schedule window.

Courier new,

case sensitive

(default is

lowercase)

Code output,

directory names,

filenames,

passwords,

pathnames,

URLs,

user input,usernames

Code output: debug.set (‘I”, 300);

Directory: bin (DOS), $FMHOME (UNIX)

Filename: Locate the init.ora file.

Password: User tiger as your password.

Pathname: Open c:\my_docs\projects

URL: Go to http://www.oracle.com

User input: Enter 300

Username: Log on as scott

Initial cap Graphics labels

(unless the term is a

proper noun)

Customer address (but Oracle Payables)

Italic Emphasized words

and phrases,

titles of books and

courses,

variables

Do not save changes to the database.

For further information, see Oracle7 Server SQL Language

Reference Manual.

Enter [email protected], where user_id is the

name of the user.

Quotation

marks

Interface elements

with long namesthat have only

initial caps;lesson and chapter

titles in cross-

references

Select “Include a reusable module component” and click Finish.

This subject is covered in Unit II, Lesson 3, “Working with

Objects.”

Uppercase SQL column

names, commands,

functions, schemas,

table names

Use the SELECT command to view information stored in the

LAST_NAME

column of the EMP table.

Arrow Menu paths Select File > Save.

Brackets Key names Press [Enter].

Commas Key sequences Press and release keys one at a time:[Alternate], [F], [D]

Plus signs Key combinations Press and hold these keys simultaneously: [Ctrl]+[Alt]+[Del]




R12.x Oracle Cash Management Fundamentals Table of Contentsx

Typographic Conventions in Code

Convention Element Example

Caps and

lowercase

Oracle Forms

triggers

When-Validate-Item

Lowercase Column names,

table names

SELECT last_nameFROM s_emp;

Passwords DROP USER scottIDENTIFIED BY tiger;

PL/SQL objects OG_ACTIVATE_LAYER(OG_GET_LAYER (‘prod_pie_layer’))

Lowercase

italic

Syntax variables CREATE ROLE role

Uppercase SQL commands and

functions

SELECT useridFROM emp;

Typographic Conventions in Oracle Application Navigation Paths

This course uses simplified navigation paths, such as the following example, to direct you

through Oracle Applications.

(N) Invoice > Entry > Invoice Batches Summary (M) Query > Find (B) Approve

This simplified path translates to the following:

1. (N) From the Navigator window, select Invoice then Entry then Invoice Batches

Summary.

2. (M) From the menu, select Query then Find.

3. (B) Click the Approve button.

Notations:

(N) = Navigator

(M) = Menu

(T) = Tab

(B) = Button

(I) = Icon

(H) = Hyperlink

(ST) = Sub Tab




R12.x Oracle Cash Management Fundamentals Table of Contentsxi

Typographical Conventions in Oracle Application Help System Paths

This course uses a “navigation path” convention to represent actions you perform to find

pertinent information in the Oracle Applications Help System.

The following help navigation path, for example—

(Help) General Ledger > Journals > Enter Journals

—represents the following sequence of actions:

1. In the navigation frame of the help system window, expand the General Ledger entry.

2. Under the General Ledger entry, expand Journals.

3. Under Journals, select Enter Journals.

4. Review the Enter Journals topic that appears in the document frame of the help system

window.




R12.x Oracle Cash Management Fundamentals Table of Contentsxii



Copyright © Oracle, 2010. All rights reserved.

Oracle Cash Management OverviewChapter 1 - Page 1

Oracle Cash ManagementOverview

Chapter 1





Oracle Cash Management Overview





Objectives





Agenda





Overview

Overview

Oracle Cash Management is an enterprise cash management solution that helps you manageyour liquidity and cash position.

• Manage and control your cash cycle: track closing ledger and available balances as wellas month-to-date and year-to-date averages.

• Create all bank accounts centrally

• Transfer funds between bank accounts manually or automatically.

• Reconcile bank accounts

• Use cash pools to optimize funds

• Forecast your cash needs





Cash Management Integration

Cash Management Integration

Cash Management integrates with:

• Banks

• Receivables: Receipts are available to Cash Management for reconciliation and clearing.Miscellaneous receipts can be created in Receivables from Cash Management to recordbank charges or interest.

• Payables: Payments are available to Cash Management for reconciliation and clearing.

• General Ledger: Journal entries and cash account balances are available to CashManagement for reconciliation. Journal entries are created for bank account transfersand bank statement cashflows using Subledger Accounting and transferred to General

Ledger.• Payroll

• Treasury

• Payments covering the SEPA Credit Transfer and Cash Management Cashflows forclearing and reconciliation, which are generated from Bank Account Transfers and BankStatement Cashflow programs, are also available.

• Open Interfaces





Overview of Bank Account Model


In previous releases, Payables owned banks, bank branches, and bank accounts. Such bankaccounts could also be used by Receivables. Payroll, and Treasury, but they had their ownbank account models.

In the new model shown on your screen, Banks and Bank Branches are created as TradingCommunity Architecture parties. The bank accounts are associated with Bank Branches butreside within the Cash Management application. During the bank account creation, you areable to define in which applications this bank account can be used.





Setting Up for Reconciliation

Setting Up for Reconciliation

Before you set up Cash Management, you should set up Oracle Application responsibilitiesand users for the implementation.

Cash Management provides three responsibilities: Cash Management, Bank Reconciliation,and Cash Forecasting.

• It uses data from General Ledger, Payables, Payroll, Receivables, and Treasury forbank statements reconciliation;

• It uses Payments for SEPA Credit Transfer;

• It uses information from General Ledger, Order Management, Payables, Payroll,Purchasing, Projects, Sales, Treasury, and Receivables for cash forecasting.

You must perform certain setup steps in these applications before you can use CashManagement with them.





Reconciliation

Reconciliation

This graphic depicts the Reconciliation lifecycle flow.

Enter the detailed bank information manually or electronically.

Reconcile these information with your system transactions manually or automatically.

While reconciling, you can create miscellaneous transactions for bank-originated entries andmanually enter payments and receipts.

You can manually or automatically clear payments, receipts, open interface andmiscellaneous transactions before reconciliation to maintain current cash account balances.

After reconciliation, review the Bank Statement Detail, Bank Statement Summary, and BankStatement by Number Reports.

You can post the accounting entries to your general ledger. You can reconcile your generalledger cash account balance to your bank account balance in Cash Management by printingthe General Ledger Reconciliation Report.





Reconciliation: Bank Statement Information

Reconciliation: Bank Statements

Managing Bank Statement Information

Oracle Cash Management maintains bank statement data that you want to reconcile. You usethe Cash Management Bank Statement Open Interface to load bank statement data or enterand update them manually.

Each bank statement consists of one bank statement header and multiple bank statementlines. Each bank statement line can refer to one or more payments, receipts, open interfaceand miscellaneous transactions, or journal entry. A bank statement line’s status can beReconciled, Unreconciled, Error, and External. The Batch Booking concept is introduced tohandle multiple statements, a statement line can be matched to a Batch, a Group, or aTransaction.

You can manage bank errors by manually or automatically reconciling them. You canreconcile by matching a bank statement line with a Payables or Payroll payment, Receivablesreceipt, miscellaneous transaction, open interface transaction, Treasury settlement, or GL journal entry. You can also clear the matched transactions. Bank statement lines are coded toidentify the transaction type represented by the line. You need to map each code used.





Reconciliation: Integration

Reconciliation: Integration

Oracle Cash Management shares functionality with Receivables, Payables, Payroll,Payments, Treasury, General Ledger, and other external systems.





Reconciliation: Oracle Receivables and Payables

Reconciliation: Oracle Receivables and Payables

You can reconcile payments you created in Payables and receipts you entered in Receivablesagainst your bank statements.

When you reconcile Payables payments in Cash Management, the payments are firstmatched to bank statement lines and then cleared. You can also manually clear the paymentsprior to reconciliation. After clearing or reconciling your payments, you can create accountingentries for the Cash, Cash Clearing, Bank Charges, Bank Errors, Realized Gain and RealizedLoss accounts that you specified in the Payables Bank Accounts window and the PaymentDocuments window. You then transfer the accounting entries to your general ledger.

When you reconcile receipts with Cash Management, accounting entries are automaticallycreated in the Cash, Remittance, Short-term Debts, and Interest Earned accounts, as

applicable to the reconciliation transaction. Cash Management uses the accounts you definedin the Banks window and the Receipt Classes window (Payment Methods region) inReceivables. You post the accounting entries resulting from Cash Management receiptreconciliation to General Ledger from Receivables.





Reconciliation: Oracle Payroll, Oracle Treasury, and OracleGeneral Ledger

Reconciliation: Oracle Payroll, Oracle Treasury, and Oracle General Ledger

You can reconcile manual and EFT payments from Payroll and journal entries from GeneralLedger against your bank statements.

• Using the Bank Account Security Access profile option, you can grant access to thebank account information at three levels: All, Internal, and Payroll.

• You can reconcile third party payments such as child support payments using the samematching criteria as payroll payments.

• Voided payments on the bank statement lines will be marked with an error message thatidentifies the payments as voided.

• Payment discrepancies are not automatically reconciled, but marked with an errormessage showing that the transaction amount is different from the payment amount.

You can also reconcile the following from Treasury: Settlements from Treasury as openinterface transactions, shared bank accounts, and bank account balances..

• You can load, import, and reconcile bank statements from bank accounts shared byTreasury and Cash Management.





• When you import bank statements from a shared bank account, Cash Management usesthe balance provided by your bank to update the bank account balances in Treasury.





Reconciliation: Oracle Payments

Reconciliation: Oracle Payments

SEPA Credit Transfer

Oracle Cash Management through Oracle Payments covers the SEPA Credit Transfer (SCT)feature, which is a payment instrument for the execution of credit transfers in Euro betweentwo parties located in the SEPA (Single European Payment Area) zone. This enables thePayment originator or payer to transfer money through their bank to the account of thebeneficiary or supplier.

The SEPA Credit Transfer scheme is defined by the European Payment Council (EPC) as aset of rules, practices, and standards to support the creation and implementation of a core andbasic credit transfer process whether for single, bulk or repetitive payments.

The SCT is governed by the EPC Rulebook and Implementation Guidelines Version 2.2 thatwere approved by the EPC in December 2006. The SEPA Credit Transfer supports theISO20022 message with the SEPA implementation: customer credit transfer initiation. ThisXML message contains all the relevant information related to the payment instruction and issent by the Payment originator to the bank.





Cash Forecasting

Cash Forecasting

This graphic depicts the Cash Forecasting process flow.

Cash Forecasting is a planning tool for anticipating business cash inflow and outflow so thatyou can protect your cash needs and evaluate your liquidity position.





Cash Forecasting (Continued)

Cash Forecasting (continued)

This graphic depicts the cash outflow and inflow sources for Cash Forecasting.

Cash inflow data is accessible for forecasting in Oracle Cash Management from Receivables,Order Management, Sales, General Ledger, and Treasury.

Cash outflow data comes from Payables, Purchasing, Payroll, General Ledger, and Treasury.

Cash flow information also comes from Projects and other Oracle Applications. You caninclude cash flows from external systems using the External Cashflow Open Interface.





Cash Positioning

Cash Positioning

Cash Positioning is a planning tool for viewing your daily cash position by currency or bankaccount to protect your cash needs and evaluate your liquidity position. The daily cashpositions are based on actual cash flows from various Oracle applications. You can generatea daily cash position from a single or multiple currencies, bank accounts, and legal entities.





Cash Pools

Cash Pools

Cash pooling is a Cash Management technique for optimizing bank account balances at oneor several banks. It is usually performed daily, by transaction, or by total net end-of-daybalances.

If your cash position includes cash pools, generate a cash leveling proposal. The cashleveling proposal is calculated online based on the sub account target balances and transferamount calculation rules.

For notional cash pools and physical cash pools with bank initiated sweeps, use the cashleveling proposal to approximate the projected closing balance of the concentration account,so that the investment or funding decisions could be made from the concentration accountbased on the projection.

For physical cash pools that do not have bank initiated sweeps, generate IntercompanyFunding Transactions and/or Inter-Account transfers from the cash leveling proposal. Thesetransfers can then be included in the payment file and sent to the bank through OracleTreasury.





Oracle Cash Management Reports and Programs





Quiz

Answers: 1

Quiz Specifications

• The correct answer is “You can use Oracle Cash Management to manage your bankand bank account information”.





Quiz

Answers: 4

Quiz Specifications

• The correct answer is “In Batch Booking, a statement line can be matched to a Batch, aGroup, or a Transaction”.





Quiz

Answers: 2

Quiz Specifications

• The correct answer is “Oracle Cash Management through Oracle Payments covers theSEPA Credit Transfer (SCT) feature, which is a payment instrument for the execution ofcredit transfers in Euro between two parties located in the SEPA (Single EuropeanPayment Area) zone”.





Quiz

Answers: 2, 4

Quiz Specifications

• The correct answer is “Cash inflow data is accessible for forecasting from OracleReceivables and Oracle Projects”.





Summary




Cash Management SecurityChapter 2 - Page 1

Cash Management Security

Chapter 2





Cash Management Security





Objectives





Agenda





MOAC and Cash Management

MOAC and Cash Management

Cash Management leverages Oracle Applications' multiple organization access control(MOAC) feature. MOAC lets you define multiple organizations and the relationships amongthem in a single installation of Oracle Applications. These organizations can be ledgers,business groups, legal entities, operating units, or inventory organizations.

If you implement MOAC, then in Cash Management you can:

• Determine who can access a bank account by defining which legal entity ‘owns’ theaccount and which users have access to that legal entity.

• Reconcile bank statements across multiple OUs from a single responsibility.

MOAC uses the following profile options:

• MO: Security Profile• MO: Default Operating Unit

• MO: Operating Unit





Multiple Organizations Access Control Setup – Set Profile Options

Multiple Organizations Access Control Setup – Set Profile Options

This table describes the profile values to setup MOAC.

(N) System Administrator > Profile > System

• MO: Security Profile controls the list of operating units that a responsibility or user canaccess. You must create a security profile in Oracle HRMS that lists the operating unitsyou want to grant access to. Then you assign that security profile to the MO: SecurityProfile option.

• If you set this profile option at the responsibility level, then all users using thatresponsibility will have access to only the operating units listed in the security profile. Ifyou set this profile option at the user level, then the user will have access to only theoperating units in this security profile no matter what responsibility they use.

• MO: Default Operating Unit is an optional profile option and allows you to specify thedefault operating unit to be shown when you open different subledger application pages.Because users can access multiple operating units, you may want to set up a defaultone instead of forcing users to constantly have to choose one. Use this profile option toset the operating unit context for your users. With User Preferences, you can alsospecify a default operating unit at the user level.





• MO: Operating Unit profile option provides backwards compatibility and supportsproducts that do not use MOAC. If you specify a security profile for the MO: SecurityProfile, then those products that use MOAC will ignore the MO: Operating Unit profileoption.

For more information on multiple organization setup, see: Oracle Applications MultipleOrganizations Implementation Guide.





Cash Management Security Model

Cash Management Security Model

In Cash Management, you can control which users have access to your bank accounts andcash management activities by creating security rules. Security rules prevent unauthorizedusers from creating or updating bank accounts, viewing bank statements, reconciling bankstatements, and transferring funds. The three different types of security rules are:

• Bank Account Maintenance Security rules determine who can create and update bankaccounts based on the legal entities the user can access.

• Bank Account Access Security rules use a combination of information from BankAccount Access Setup and Cash Management Security Profiles to determine who canaccess bank accounts and the type of activities they can perform for the bank account.

• Bank Account Transfer Security rules determine who can create, update, and view bankaccount transfers based on the legal entities that the user can access.





Bank Account Maintenance Security

Bank Account Maintenance Security

Bank Account Maintenance Security rules grant the privilege to create and update bankaccounts. By identifying the legal entities available for a role (responsibility), granting the roleaccess to maintain bank accounts, and assigning roles to users, you can control which userscan perform bank account maintenance.

For example, Pat Stock is a cash manager in your company and can access the CashManager responsibility. The Cash Manager responsibility has access to the LE1, LE2, andLE3 legal entities. Access to maintain bank accounts has been granted to this responsibilityonly for LE2. Therefore Pat can create a bank account for only LE2. If you want Pat Stock tobe able to create bank accounts for the LE1 and LE3 legal entities, then you must grantaccess for maintenance to the Cash Manager responsibility for LE1 and LE3.

To update a bank account, Pat can only query and find bank accounts whose owner (legalentity) is registered for the Cash Manager responsibility. Pat can update banks accounts forLE1, LE2, and LE3.

To set up maintenance security, use the CE UMX Security Wizard available under the UserManagement (UMX) responsibility. The wizard helps you quickly define the legal entitiesavailable for a role. To launch the wizard, log in as System Administrator, then in the UserManagement responsibility, go to Roles & Role Inheritance.





Note: If a user is assigned to multiple roles and those roles have bank account maintenancegrants to multiple legal entities, then the user will view all legal entities in Cash Managementregardless of which responsibility he or she uses to access the application.





Bank Account Access Security

Bank Account Access Security

Bank account access security rules are created by combining bank account accessinformation with security profiles created for Cash Management users.

• Bank account access setup defines which organizations can use a bank account.

• Security profiles provide a list of organizations that a user can access.

Access is granted to a user when an organization is defined in both areas. A user must haveaccess to the organization that uses the bank account in order to be able to access that bankaccount.

In this example, user Pat Stock has access to Bank Account 555 because LE 1 is common toboth the account use access and the security profiles. Pat can perform cash positioning, cash

forecasting, and cash pool activities; and reconcile cashflow lines for the bank statement. Patcan also reconcile Payables transaction lines for the bank statement because OU 1 isidentified as an organization that uses this bank account for Payables activities and becausePat has MOAC security rights to OU 1. She cannot however reconcile any bank statementlines for Payroll, Receivables, or Treasury.





Cash Management Security Profiles and Reconciling BankStatements

Cash Management Security Profiles and Reconciling Bank Statements

Cash Management Security Profiles identify the organizations (operating units, legal entities,and business groups) that a user can access. These security profiles provide transaction levelsecurity and determine which transactions a user can reconcile against bank statement lines.To be able to reconcile transactions, a user must have the organization that owns thetransaction defined in the related security profile

• MOAC security: Payables and Receivables transactions

• CE Bank Account Use security: Cashflow transactions from Cash Management

• Payroll security: Payroll transactions for business group defined in HR: Business Group

profile option• Treasury security: Treasury transactions for default legal entity





Cash Management Security Components

Cash Management Security Components

Set up security for access to Cash Management activities by using components from differentapplications. The specific steps required to secure access to your bank accounts depend onthe type of access you want to secure, the applications that you use for your business, andyour organization structure.

• Use the CE UMX Security Wizard to grant a role (responsibility) the ability to performbank account activities in the following areas:

- Use: View bank statements, reconcile cashflow transactions, work with cashforecasting, cash positioning, and cash pools

- Maintenance: Create and update bank accounts

- Bank Account Transfers: Transfers funds from and to internal bank accounts.• When creating bank accounts, specify the legal entity that owns the account and the

organizations that the account is used for (Payables, Receivables, Treasury, Payroll).

• Create security profiles to define the list of organizations that a user can access. Set upsecurity profiles in the following applications as needed:

- MOAC: To define the list of operating units a user can access for Payables andReceivables and be able to reconcile Payables and Receivables bank statementlines.





- Cash Management: To define the list of organizations a user can access toreconcile cashflow transactions. This security profile also allows users to accessbank accounts for cash forecasting, cash positioning, and cash pools if no othersecurity profiles are set up.

- Treasury: To define the legal entity that the Treasury user can access and be ableto reconcile Treasury bank statement lines.

- Payroll: To define the business groups a user can access and be able to reconcilepayroll transactions.





Setting Up Security

Setting Up Security

To set up security to control access to your bank accounts, you need to complete the followingsteps. These steps are a general guideline to the components that affect bank accountsecurity but may be performed at various stages during implementation of your system. Oncethe setup is in place, it will be referenced to verify access every time a user attempts to createa bank account, reconcile a bank statement or perform any other actions in CashManagement.

• Define business groups.

• Create users, assign responsibilities, and set HR profile options including HR: BusinessGroup.

• Define legal entities and accounting setups.

• Define operating units and run replicate seed program.

• Define security profiles: For Multi-Org access, select operating units for your securityprofile. The security profile is then assigned to the responsibility or user which will givethe responsibility or user access to these operating units.

• Set Cash Management profile options: MO: Security Profile, MO: Default Operating Unit,and MO: Operating Unit (if needed).





• Set up UMX security: Use the CE UMX Security Wizard and create security grants forlegal entities for specific roles (responsibilities).

• Set up system parameters for Cash Management, Treasury (if using), Payroll (if using)and other applications as needed.

• Create bank accounts





Creating Bank Account Security Grants

Creating Bank Account Security Grants

(N) User Management > Roles & Role Inheritance > Search > (I) Update > Security Wizards >CE UMX Security Wizard > (I) Run Wizard

CE UMX Security Wizard

Use the CE UMX Security Wizard to grant users access to bank accounts. In the wizard, youidentify which legal entities a role (responsibility) can access. Then a Cash Management userwith that role will have access to all bank accounts for the legal entities belonging to the role.You can further limit access to only perform certain activities for the bank accounts associatedwith each legal entity.

• Use: Users can view bank accounts to perform activities related to Cash Positioning,Cash Forecasting, and Cash Pools. They can also reconcile bank statement lines forcashflow transactions.

• Maintenance: Users can create and update bank accounts

• Bank Account Transfers: Users can transfer funds to and from bank accounts.

In this example, any user with the Cash Manager role has the security grants to use, maintain,and transfer funds for all bank accounts that belong to the Vision Operations legal entity. ForVision Corporation legal entity, users can only use the bank accounts in Cash Managementfunctions.





Quiz

Answers: 1

Quiz Specifications

• The correct answer is “Multiple Organization Access Control (MOAC) lets you definemultiple organizations and the relationships among them in a single installation of OracleApplications”.





Quiz

Answers: 1, 2, 4

Quiz Specifications

• The correct answer is “The three different types of security used by Cash Managementare Bank Account Maintenance, Bank Account Access, and Bank Account Transfer ”.





Quiz

Answers: 2

Quiz Specifications

• The correct answer is “Users can transfer funds if their assigned Legal Entity has beengiven Bank Account Transfer right”.





Quiz

Answers: 2

Quiz Specifications

• The correct answer is “MOAC uses three profile options: MO: Security Profile, MO:Default Operating Unit, and MO: Operating Unit”.





Summary




Setting Up Oracle Cash ManagementChapter 3 - Page 1

Setting Up Oracle CashManagement

Chapter 3





Setting Up Oracle Cash Management





Objectives





Agenda





Overview

Overview

Setting Up Oracle Cash Management

Before setting up Cash Management, you should set up Oracle Application responsibilitiesand users for the implementation. You must also set up underlying Oracle ApplicationsTechnology.

Through Oracle Applications Multiple Organization Support, you can use multiple sets ofbooks for one Cash Management installation and assign a ledger (with its unique calendar,chart of accounts, and functional currency) to each operating unit you define. You cansegregate transactions by operating unit while sharing certain data:

• Currencies

• Exchange Rates• Organizations

• Ledgers

• Bank Accounts





Setting Up Oracle General Ledger

Setting Up Oracle General Ledger

Use the General Ledger Setup section in the Oracle General Ledger Implementation Guide forhelp in completing the setup steps.





Setting Up Oracle Payables

Setting Up Oracle Payables

Complete the setup steps to enable Oracle Cash Management to integrate with OraclePayables.

• Primary ledger: Select a primary ledger for each responsibility in the Choose Ledgerwindow in Oracle Payables.

• Account for Payment options:

- When Payment is Issued – If you use a cash clearing account, select this option tocreate accounting entries for bank charges, errors, and gains/losses. If you do notenable this option, you can still reconcile payments in Cash Management, but youcannot create reconciliation accounting entries.

- When Payment Clears - You must select this option.• Account for Gain/Loss options: Set this option to account for gain or loss between the

estimated functional currency payment amount and the actual functional currencypayment amount.

- When Payment is Issued

- When Payment Clears – Set automatically when you select Account for PaymentWhen Payment Clears option.

• Payables accounting periods: see Controlling the Status of Payables Periods.





• Use the Payables Setup section in the Oracle Payables Implementation Guide for help incompleting the setup steps.





Setting Up Oracle Receivables

Setting Up Oracle Receivables

To define receivable activities and payment methods for miscellaneous transactions:

• In Receivables Activities window, enter the values for asset tax code and liability taxcode, if required.

• Set the AR: Allow Tax Code Override profile option to control whether you can overridethe default value for the Tax Code field.

• Perform any additional setup required to handle miscellaneous receipts, includingdefining receipt sources and distribution sets.

• Optionally, set up sequential numbering.

Use the Setting Up Oracle Receivables section in the Oracle Receivables Implementation

Guide for help in completing the setup steps.





Setting Up Oracle Payroll

Setting Up Oracle Payroll

Perform these setup steps before implementing Oracle Cash Management..

• Define an organization and classify it as a business group, legal entity, HR organization,and operating unit.

• Assign the business group to the HR: Security profile option for your Payrollresponsibility. Do this only if the assignment has not already been made in the initialsetup.

• In Cash Management, be sure to select Payroll Use for correct business groups whendefining bank accounts to be used for payroll reconciliation.

• Create payment methods.

• Specify a cash account and a ledger in order to use the Journal Entry Line reconciliationfeature from your payroll bank accounts in Cash Management. The ledger you specifymust be the same ledger you assign to the GL Ledger Name profile option. In CashManagement, set up the Payments and Stopped Payments bank transaction codes forthe bank account.

• Use the Setting Up Oracle Payroll for Oracle Cash Management Integration section inthe Oracle Cash Management User Guide for help in completing the setup steps.





Setting Up Oracle Treasury

Setting Up Oracle Treasury

Use the Setting Up Oracle Treasury for Oracle Cash Management Integration section in theOracle Cash Management User Guide for help in completing the setup steps.





Setting Up Oracle Cash Management: System Parameters

Setting Up Oracle Cash Management: System Parameters

(N) Setup: System > System Parameters

Use the System Parameters window to configure your Cash Management system to meetyour business needs. System parameters determine, for example, the default options formanual reconciliation windows, and the control settings for the AutoReconciliation program.

Basic System Parameters:

• Legal Entity: The name of the legal entity that the system parameters are applied to.

• Ledger: The name of the ledger for Cash Management accounting transactions. Thisvalue defaults from the GL Ledger Name profile option. Cash Management supportsmultiple ledgers. Each legal entity is tied to a ledger. If you deal with multiple legal

entities,t hen you must set up system parameters for each legal entity.• Begin Date: Cash Management will not display transactions dated earlier than this date.

Reconciliation Controls:

• Show Cleared Transactions: If you check this check box, cleared transactions remainavailable for reconciliation. Otherwise, only uncleared transactions will appear forreconciliation.

• Allow Adding Lines to Imported Statements





• Show Void Payments: You must check this check box if you want voided paymentsavailable for reconciliation.

Signing Authority Approval:

• Workflow Enabled

• Manually Controlled

Cash Management Transactions:

• Accounting: Exchange Rate Type, Bank Statement Cashflow Rate Date, Bank TransferRate Date

• Bank Account Transfers: Authorization

Note: Set up bank reconciliation controls such as matching order and float status for eachbank account when you create or update a bank account.





Setting up Oracle Cash Management: Bank Transaction Codes

Setting Up for Reconciliation: Bank Transaction Codes

Defining Bank Transaction Codes

If you want to load electronic bank statements or use Cash Management's AutoReconciliationfeature, you must define, for each bank account, the transaction codes that each bank uses toidentify different types of transactions on its statements.

Because each bank might use a different set of transaction codes, you must define a banktransaction code for each code that you expect to receive from each bank that you use.

Transaction types include: Payment, Receipt, Miscellaneous Payment, MiscellaneousReceipt, Stopped, Rejected, NSF, Sweep In, and Sweep Out.





Setting Up Oracle Cash Management: Bank Statement OpenInterface

Setting Up Oracle Cash Management: Bank Statement Open Interface

This graphic describes the Bank Statement Open Interface process flow.

Using the Bank Statement Open Interface

Before you can reconcile transactions with a bank statement, you need to enter the bankstatement information into Oracle Cash Management.

If your bank provides bank statements in a flat file, you can use the bank statement openinterface to load this information into Oracle Cash Management using the Bank StatementLoader program or a custom loader program.

The Bank Statement Open Interface consists of two bank statement open interface tables:

• Bank Statement Headers Interface Table CE_STATEMENT_HEADERS_INT_ALL

• Bank Statement Lines Interface Table CE_STATEMENT_LINES_INTERFACE





Setting Up Oracle Cash Management: Reconciliation OpenInterface

Setting Up Oracle Cash Management: Reconciliation Open Interface

Through the Cash Management Reconciliation Open Interface, you can:

• Find Treasury settlements that are available for reconciliation

• Automatically or manually reconcile Treasury settlements to bank statement lines

• Find reconciled Treasury settlements

• Find external transactions available for clearing and reconciliation

• Manually clear external transactions

• Automatically or manually reconcile external transactions to bank statement lines

• Find cleared and reconciled external transactionsAfter setup, you can run AutoReconciliation or clear or reconcile open interface transactionsmanually. You do not run the Reconciliation Open Interface as a separate program. CashManagement automatically retrieves the necessary data from the open interface view(CE_999_INTERFACE_ V) for matching bank statement lines to external transactions.

You can automatically or manually reconcile Treasury settlements and unreconcile them afterreconciliation. However, you cannot clear or unclear Treasury settlements. Refer to Using





Reconciliation Open Interface to Reconcile Treasury Settlements in the Oracle CashManagement User Guide for more information.





Setting Up Oracle Cash Management: External Cashflow OpenInterface

Setting Up Oracle Cash Management: External Cashflow Open Interface

Through two source transaction types, Open Interface Inflow and Open Interface Outflow, youcan include external application transaction sources for cash forecasting and cash positioning.With two separate source transaction types for external source transactions, you can easilyindicate whether the transaction source consists of cash inflow or outflow.

The External Cashflow Open Interface collects cash flow amounts from your external systems,and the Cash Forecasting and Cash Positioning modules summarize and calculate the data toinclude in your cash forecasts and positions with other Oracle Applications data.

You can include transactions located on a remote database in your cash forecasts and cash

positions. For each Oracle Application or non-Oracle application source type on a distributeddatabase, you need to specify a database link.

After the setup, you can generate a cash forecast and cash position, and automaticallyretrieve data available from the defined external sources. You do not run the ExternalCashflow Open Interface as a separate program.

To use the External Cashflow Open Interface effectively, refer to Preparing to Use theExternal Cashflow Open Interface in the Oracle Cash Management User Guide.





Setting Up Oracle Cash Management: Sequential DocumentNumbering

Setting Up Oracle Cash Management: Sequential Document Numbering

This graphic describes the sequential document numbering process flow.

Through the Document Sequences feature in Oracle Application, Cash Management canassign sequential document numbers to your bank statements. Use the System Administratorresponsibility when setting up sequential numbering.





Quiz

Answers: 2

Quiz Specifications

• The correct answer is “Set the AR: Allow Tax Code Override profile option to Yes tooverride the default value for the Tax Code field”.





Quiz

Answers: 3

Quiz Specifications

• The correct answer is “Assign the business group to the HR security profile is part of thesetup for Oracle Payroll”.





Quiz

Answers: 2

Quiz Specifications

• The correct answer is “You can also use a custom loader program to load the bankstatement information into Oracle Cash Management”.





Quiz

Answers: 4

Quiz Specifications

• The correct answer is “Show Void Payments”.





Summary




Creating Bank AccountsChapter 4 - Page 1

Creating Bank Accounts

Chapter 4





Creating Bank Accounts





Objectives





Agenda







The Bank Account Model feature allows you to define and keep track of all bank accounts inthe E-Business Suite in one place and explicitly grant account access to multiple operatingunits/functions and users.

Bank accounts for internal use in Cash Management, Payables, Receivables, Treasury, andPayroll are consolidated.





Overview of Bank Account Model (Continued)

Overview of Bank Account Model (continued)

In previous releases, Payables owned banks, bank branches, and bank accounts. Such bankaccounts could also be used by Receivables. Payroll, and Treasury, but they had their ownbank account models.

In the new model shown on your screen, Banks and Bank Branches are created as TradingCommunity Architecture parties. The bank accounts are associated with Bank Branches butreside within the Cash Management application. During the bank account creation, you areable to define in which applications this bank account can be used.





Overview of Bank Account Model (Continued)

Overview of Bank Account Model (continued)

Use the Bank Account Model Setup section in the Oracle Cash Management User Guide forhelp in completing the setup steps.





Defining Banks

Defining Banks

(N) Cash Management, Vision Operations (USA) > Setup > Banks (T) Bank

To define a bank, complete these setup steps:

Bank Information

• Select Create.

• Select one of the two radio buttons in the Bank Options region. When creating a newbank, you can either create a new bank or add bank details to an existing party definedin your Trading Community.

• Enter a country name or select a country from the list of values. This is a mandatoryfield.

• Enter the Bank Name. This is a mandatory field.• Optionally, enter an Alternative Bank Name, Short Bank Name, Bank Number,

Description, Taxpayer ID, Tax Registration Number, XML Messages Email, InactiveDate, and Context Value.

• Select Finish to save your bank or select Save and Next to enter Bank Addressinformation

Bank Address Information





• In the Create Bank Address page, select Create.

• Enter a site number.

• Enter a country, or select one from the list of values.

• Enter the remaining country specific address details.

• Select Apply to save the address.

• Select Finish to complete the bank creation or select Save and Next to enter Bank

Contact Information.Bank Contact Information

• In the Create Bank Contact page, select Create.

• Enter Contact Information. You need only enter a first or last (Family) name, Start Date,and Email.

• Optionally, enter Phone and Address information for the contact.

• Select Apply to save the contact information.

• Select Finish to complete the bank creation.





Defining Bank Branches

Defining Bank Branches

(N) Cash Management, Vision Operations (USA) > Setup > Banks > (T) Bank Branches

To define a bank branch, complete these setup steps:

• Select Create.

• Enter the Country and Bank Name for which you are creating the branch or select fromthe list of values and select Continue.

• Select one of the two radio buttons in the Branch Options page to indicate if you arecreating a new branch or adding branch details to an existing party defined in yourTrading Community.

• Enter the Branch Name. This is a mandatory field.

• Select Branch Type. This is a mandatory field.• Optionally, enter the remaining branch information, such as Alternate Branch Name,

Branch Number, BIC, EDI Location, EFT Number, Description, RFC Identifier, InactiveDate, and Context Value.

• Select Finish to save your branch or select Save and Next to enter Branch Addressand/or Branch Contact information. This is similar to creation of the Bank Address andBank Contact information.





Linking Bank and Branches in Oracle Treasury

Linking Bank and Branches in Oracle Treasury

(N) Treasury, Vision Operations (USA) > Setup > Parties > Counterparty Profiles

If you intend to create an internal bank account for use in Treasury, before proceeding to thebank account setup, you have to link the bank branch you have just created to thecounterparty in Treasury.

You can create a new or update an existing counterparty. In order to establish the link, use thefollowing steps:

• Check Bank Branch.

• Select the Full Name. All the available bank branches is displayed.

Use the Setting Up Oracle Treasury for Oracle Cash Management Integration section in the

Oracle Cash Management User Guide for help in completing the setup steps.





Creating Bank Accounts: Selecting Branch, Legal Entities, andFunctions

Creating Bank Accounts: Selecting Branch, Legal Entities, and Functions

(N) Cash Management, Vision Operations (USA) > Setup > Banks > Manage Bank Accounts

Perform these setup steps to start the Bank Account creation process:

• Navigate to the Manage Banks Accounts page using the Setup: Banks menu under theCash Management, Vision Operations (USA) responsibility.

• Select Create.

• Enter the Country, Bank Name, and Branch Name for which you are creating thisaccount and select Continue.

• Enter the Bank Account Owner - the legal entity that owns the account.

• Select the types of functions that this bank account is going to be used for: Payables,Payroll, Receivables, and/or Treasury. If the Treasury option is disabled, you have notlinked this bank branch to the counterparty in Treasury.

• Select Next to enter the Account Information details.

Use the Bank and Account Administration: Define Bank Accounts section in the Oracle CashManagement User Guide for help in completing the setup steps.





Creating Bank Accounts: Adding Account Attributes

Creating Bank Accounts: Adding Account Attributes

(N) Cash Management, Vision Operations (USA) > Setup > Banks > Manage Bank Accounts> (T) Account Information

Perform these setup steps:

• Enter or select the Account Name, Account Number, and Currency. These aremandatory fields.

• Optionally, enter or select the Alternate Account Name, Short Account Name, CheckDigit, Multiple Currencies Allowed, International Bank Account Number (IBAN), AccountType, Account Suffix, EFT Number, Secondary Account Reference, Account Holder,Alternate Account Holder, Description, Start Date, and End Date.

• Select Save and Next to enter Account Controls details.Use the Bank and Account Administration: Define Bank Accounts section in the Oracle CashManagement User Guide for help in completing the setup steps.





Creating Bank Accounts: Adding Account Controls

Creating Bank Accounts: Adding Account Controls

(N) Cash Management, Vision Operations (USA) > Setup > Banks > Manage Bank Accounts> (T) Account Controls


• General Controls Region

- Enter or select the Cash Account Number. This is a mandatory field.

- Optionally, enter or select the Cash Clearing Account Number, Bank ChargesAccount Number, Bank Errors Account Number, Foreign Exchange ChargesAccount Number, and Agency Location Code.

- Select the Netting Account.

• Cash Management Controls Region (Optional)- Enter the Minimum Target Balance and Maximum Target Balance.

- Enter the Minimum Payment Amount and Minimum Receipt Amount.

- Select the Rounding Factor, Rounding Rule, and enter the Cash Flow DisplayOrder.

• Payables Controls Region (Optional)





- Enable the Multiple Currency Payments, Allow Zero Payments, and PooledAccount options, if required.

- Enter the Maximum Outlay, Minimum Payment, and Maximum Payment.

• Reconciliation Controls Region

- Select the Payables Matching Order 1 and Matching Order 2, ReceivablesMatching Order, and Float Handling.

• Foreign Currency Bank Region- Select the Exchange Rate Type and Exchange Rate Date.

• Open Interface Controls Region

- Select the Use Reconciliation Open Interfaces, if required, and Open InterfaceMatching Criteria.

- Enter the Float Status and Clear Status.

• Manual Reconciliation Tolerances Region

- Enter the Tolerance Amount and Tolerance Percentage.

• Auto Reconciliation Tolerances Region - Payments

- Enter the Tolerance Amount and Tolerance Percentage.

- Select the Foreign Tolerance Differences and Tolerance Differences.• Auto Reconciliation Tolerances Region - Cashflows

Enter the Tolerance Amount and Tolerance Percentage.

Select the Foreign Tolerance Differences and Tolerance Differences.

• Auto Reconciliation Tolerances Region – Open Interface

Enter the Tolerance Amount and Tolerance Percentage.

• Select Save and Next to enter Account Access details






Creating Bank Accounts: Adding Account Access

Creating Bank Accounts: Adding Account Access

(N) Cash Management, Vision Operations (USA) > Setup > Banks > Manage Bank Accounts> (T) Account Access


• Select Add Organization Access.

• Select the types of functions that this bank account is going to be used for: Payables,Payroll, Receivables, and/or Treasury.

• Enter or select the Organization.

• Optionally, enter or select the End Date.

• Select Continue to add Access options.

• Select Finish to save your branch or select Save and Next to enter Account Contactinformation.

Use the Bank and Account Administration: Define Bank Accounts section the Oracle CashManagement User Guide for help in completing the setup steps.





Creating Bank Accounts: Adding Account Contacts

Creating Bank Accounts: Adding Account Contacts

(N) Cash Management, Vision Operations (USA) > Setup > Banks > Manage Bank Accounts> (T) Account Contacts


• Select Create Contact.

• Enter Contact Information. You need only enter a first or last (Family) name, Start Date,and Email.

• Optionally, enter Phone and Address information for the contact.

• Select Apply to save the contact information.

• Select Finish to complete the bank account creation.






Adding Bank Account to Organization Payment Method in OraclePayroll

Adding Bank Account to Organization Payment Method in Oracle Payroll

(N) Human Resource, Vision Enterprise (USA) > Payroll > Payment Method

If you intend to add a bank account to the organization payment method in Payroll, performthese setup steps:

• In the Define Organization window, define an organization and classify it as all of thefollowing: business group, legal entity, HR organization, or operating unit.

• Assign the business group to the HR: Security profile option for your Payrollresponsibility, if it was not done during the initial setup.

- (Note: The organization defined in step 1 creates the same unique identity for all

the four classifications)- (Important: If you are using Oracle Payroll, the Organization should have already

been classified as a Business Group & HR Organization. You need to classify thesame Organization as a Legal Entity and Operating Unit also.)

• In Cash Management, ensure that bank accounts you like to use for Payrollreconciliation have Payroll Use defined with correct business groups.

• In the Organizational Payment Method window, create payment methods.





- Bank accounts you assign to your payment methods are used for Payrollreconciliation in your Cash Management responsibility. To use the bank accountsin Cash Management, provide the following information:

·Name

·Type

·Currency

·Source Bank·Bank Details

·Ledger (optional)

·GL Cash Account (optional)

• To use the Journal Entry Line reconciliation feature from your Payroll bank accounts inCash Management, specify a cash account and ledger. The ledger you specify hereshould be the same ledger you assign to the GL: Ledger profile option for your CashManagement responsibility.

• In Cash Management, you can view reconcile Payroll transactions whose bank accountsare set up with Payroll Use and the business group assigned in the Bank Account Use isthe one you have in HR: Security profile option.

• Set up the bank transactions codes in Cash Management for the bank account definedin Payroll: Payments and Stopped Payments.

Use the Setting Up Oracle Payroll for Oracle Cash Management Integration section in theOracle Cash Management User Guide for help in completing the setup steps.







(N) Cash Management, Vision Operations (USA) > Setup > Banks > Bank Transaction Codes


• In the Find Bank Account window, query and select the bank account, whose codes youare defining. The system displays the Bank Transaction Codes window, which includesbank account, bank information, and a region for entering transaction codes.

• Select the Type of bank transaction.

• Enter the Code of the bank.

• Optionally, enter the Description, Start Date, End Date, and Float Days.

• Enter a Transaction Source for payment and receipt transactions.

• Enter the Reconciliation Sequence number.

• Optionally, select the Payroll Payment Format based on which the Payroll MatchingOrder is also selected.

• Optionally, if the Transaction Type is Miscellaneous Receipt or Miscellaneous Payment,select the Matching Against to determine the order of matching and the type oftransactions to match.

• Optionally, select the Correction Method.





• Optionally, select whether to create transactions for any miscellaneous payments andmiscellaneous receipts reported on the bank statement when no transaction number isprovided. If you selected Create option, specify the Receivables Activity type andReceipt Method.

• Click Save to record the bank transaction code. Similarly, you can define othertransaction codes for the bank account.

Use the Bank Transaction Codes section in the Oracle Cash Management User Guide forhelp in completing the setup steps.





Maintaining Bank Account Signing Authorities

Maintaining Bank Account Signing Authorities

Update, track, and obtain approval for any exceptions or changes in signing authority records.





Bank Account Signing Authorities: Setting Up Prerequisites

Bank Account Signing Authorities: Setting Up Prerequisites

Perform these setup steps to set up the prerequisites to set up a bank account signingauthority:

• Enter the potential signing authorities in Oracle HRMS. Non-Oracle HRMS users canenter people in the Oracle HR Foundation responsibility.

• Set up bank accounts in Oracle Cash Management.

• In the System Parameters window, select the appropriate option for the SigningAuthority Approval system parameter. The default is Workflow Enabled.

• Oracle Workflow will change the status of all new signing authorities from Pending toApproved when saved. To configure Oracle Workflow and manually control the approval

status, you must select Manually Controlled.• Link the FND user ID or applications ID to a valid Person ID in Oracle HRMS to access

the Bank Account Signing Authority window in the maintain mode.

• Optionally, update the Signing Group and set up descriptive flexfields.

Use the Maintaining Bank Account Signing Authorities section in the Oracle CashManagement User Guide for help in completing the setup steps.





Bank Account Signing Authorities: Entering Signing Authority

Bank Account Signing Authorities: Entering Signing Authority

(N) Cash Management, Vision Operations (USA) > Setup > Banks > Bank Account SigningAuthority

Perform these setup steps to set up the prerequisites to set up a bank account signingauthority:

• In the Find Bank Account window, query and select the bank account, for which youwant to define the signing authority. The system displays the Bank Account SigningAuthority window, which includes bank account, bank information, and two regions fordefining the signing authority.

• In the Main Details tab, enter or select the Name and the Start Date.

• Optionally, enter or select the Single Limit, Joint Limit, Signer Group, Other Limitations,End Date, and Status.

• Optionally in the Additional Details tab, enter the Person Type, HR Organization, Job,Location, and Email.

• Click Save to record the bank account signing authority.

Similarly, you can define other signing authorities for the bank account. You may enter asigner multiple times on the same account, but you cannot overlap the effective date ranges.





If the start date of a new entry for the same signer and bank account is before the earlieststart date of the existing entries, the end date should be prior to the earliest start date of theexisting entries.

Enter a Signing Authority Multiple Times

You may enter a signer multiple times on the same account, but you cannot overlap theeffective date ranges.

If the start date of a new entry for the same signer and bank account is before the earlieststart date of the existing entries, the end date should be before the earliest start date of theexisting entries.

Example To add signer A’s limit for April through June 2005, enter the start and end dates tobe before 01-APR-05.

• Signer A, Single Limit 50,000, Start Date 01-JAN-07, End Date 31-MAR-07

• Signer A, Single Limit 70,000, Start Date 01-JUL-07, End Date <NULL>

Use the Maintaining Bank Account Signing Authorities section in the Oracle CashManagement User Guide for help in completing the setup steps.





Bank Account Signing Authorities: Updating Signing Authority

Bank Account Signing Authorities: Updating a Signing Authority

You can update the group, limitations, effective end date, and status on an existing signingauthority.

• Update the existing signing authority record with an effective end date and enter anotherrecord with the new limits if a signer’s limits change or authority revoked.

• Delete the record if you make an error entering a signer’s limits or effective start date.





Bank Account Signing Authorities: Viewing Signing Authority

Bank Account Signing Authorities: Viewing Signing Authority

(N) Cash Management, Vision Operations (USA) > View > Bank Account Signing Authority





Quiz

Answers: 2

Quiz Specifications

• The correct answer is “Entering the Tax Registration Number while creating a bank isoptional”.





Quiz

Answers: 2

Quiz Specifications

• The correct answer is “The Branch Type field is mandatory while creating a bankbranch”.





Quiz

Answers: 2

Quiz Specifications

• The correct answer is “In Reconciliation Controls, we have two Payables Matching orderand one Receivables Matching order”.





Quiz

Answers: 3, 4

Quiz Specifications

• The correct answers are “Ledger and GL Cash Account”.





Summary




Bank TransfersChapter 5 - Page 1

Bank Transfers

Chapter 5





Cash Transactions





Objectives





Agenda





Overview

Overview

Bank account transfers represent fund transfers between internal bank accounts.

Bank account transfers can be done either manually or automatically. The access to bankaccount transfer creation for a particular legal entity is subject to bank account use security.

The bank account transfers are reflected in Cash Position automatically. Payment processingfor bank account transfers is managed using Oracle Payments. Journal entries are createdthrough a centralized subledger accounting engine.

From the point of view of bank account ownership, you can either do a Intra-Company banktransfer or a Inter-Company bank transfer. Intra-company transfers represent cash transfersbetween two internal bank accounts that belong to the same legal entity, while Inter-companytransfers represent cash transfers between two internal bank accounts that belong to twodifferent legal entities. In case of such transfers, the system can produce balanced journalentries for both legal entities.

And from the point of view of transfer currency, you can either do a Domestic bank transfer oran International bank transfer. In Domestic bank transfer, the currency of both bank accountsand the transfer amount is the same. For example, you are transferring USD between twobank accounts that are denominated in USD. In International bank transfer, The currency ofone bank account is the same as the currency of the transfer amount but the currency of the





other bank account is different. For example, you are transferring USD from a bank accountdenominated in USD to the bank account denominated in EUR.





Setting Up Bank Transfers

Setting Up Bank Transfers

Before creating a bank transfer, complete the following steps:

• Navigate to the Profile Options page using Other: Profile menu.

• Search for CE: Bank Account Transfers profile.

• Select Cash Management and select OK.

• Set up transaction subtypes.

• Set up payment templates.





Bank Transfers Process Flow





Creating a Bank Transfer

Creating a Bank Transfer

To create a bank transfer, complete the following setup steps:

• Navigate to the Bank Account Transfers page under the Cash Management, VisionOperations (USA) responsibility.

• Click Create.

• Enter the bank account transfer information.

- Note: If you select a payment template, the bank account transfer attributesdefined at the template level will default in automatically.

• Click Apply.

Note: If you would like to validate the bank account transfer at the same time as saving it, click

Apply and Validate. The bank account transfer will be available for further processing such asmanual authorization, payment and journal creation only after it has been validated.





Authorizing a Bank Transfer

Authorizing a Bank Transfer

To authorize a bank transfer, complete the following setup steps:

• Navigate to the Bank Account Transfer Authorization page under the CashManagement, Vision Operations (USA) responsibility.

• Select the bank transfers from the displayed list and click Authorize Transfers.

Note: If the transfers requires payment processing, they will now be automatically sent toOracle Payments. If they do not require payment processing, they will now be available for journal creation.





Integrating with Payments

Integrating with Payments

Note: If the payment is successfully processed in Oracle Payments, the status of the bankaccount transfer will be automatically set to Settled. If the payment is not successfullyprocessed, the status of the bank account transfer will be automatically set to Failed and mayrequire the user's intervention to recreate the transfer.





Creating Journal Entry Rules

Creating Journal Entry Rules

Create journal entries for eligible accounting events generated by Bank Account Transfersand Bank Statement Cashflows by submitting Create Accounting concurrent program. Theprogram creates and, optionally, transfers and posts journal entries to General Ledger. If youdo not transfer the journals to General Ledger immediately, you can later submit TransferJournal Entries to GL concurrent program.

In addition to creating final accounting entries, the program can be run in a draft mode, inwhich case draft journal entries will be created. Such journals cannot be transferred or postedto General Ledger.

You can transfer automatically created journal entries to General Ledger at the same time asyou execute Create Accounting concurrent program. However, if have not done so or if you

have created manual journals, you can submit Transfer Journal Entries to GL concurrentprogram.

Once the journals are created, you can view them in the transaction windows in Oracle CashManagement. Similarly, you can drill down from the journal entry in Oracle General Ledger tothe source transaction in Oracle Cash Management.





Setting Up Transaction Subtypes

Setting Up Transaction Subtypes

To set up a transaction subtype, complete the following setup steps:

• Navigate to the Cash Management Subtypes page under the Cash Management, VisionOperations (USA) responsibility.

• Click Create.

• Enter a Subtype Name.

• Click Apply.





Setting Up Payment Templates

Setting Up Payment Templates

To set up a payment template, complete the following setup steps:

• Navigate to the Payment Templates page under the Cash Management, VisionOperations (USA) responsibility.

• Click Create.

• Enter payment template attributes on General Details and Payment Details tabs.

• Click Apply.





Cashflows

Cashflows

Cashflows can be created from the following programs:

• Manual Entry of Bank Account Transfers.

• Generate Sweep Transactions

• Cash Leveling

• Bank Statement Cashflows

Each cashflow is designed to produce a balanced journal, with a debit and credit journal entry.Cashflows are also used in clearing and reconciliation. Cashflows can be included in CashPositioning as inflow and outflow sources.





Creating Bank Statement Cashflows from Bank File

Creating Bank Statement Cashflows from Bank File

You can define mapping rules for your bank accounts in the Bank Statement CashflowMapping window in Oracle Cash Management to map your bank transaction codes to generalledger accounts and optional search strings, used for pattern matches with the data in thedescription field of the bank statement line.

Optionally provide a reference to add to the bank statement line when the combination of banktransaction code and search string is found in the bank statement line, to be used for creatingreports in Oracle Discoverer.

To create Bank Statement Cashflow Mappings, complete the following setup steps:

• Navigate to the Bank Statement Cashflow Mappings window and select the bankaccount for which you wish to define cashflow mapping rules.

• Enter the bank transaction code or select from the list of values.

- Note: You will only be able to set up rules for codes which have been previouslydefined in the Bank Statement Transaction Codes window.

• Optionally, enter a search string. The search strings are used for pattern matches withthe information in the description field of the bank statement line.





• Enter the GL Account Number which will be used to record the receipt or expense. Thecash GL Account Number will be derived from the bank accounts cash GL accountdefined in the General Controls.

• Optionally, enter the Reference information. This can be used for reporting purposes andwill be included in the journal entry associated with the created cashflow.

• Optionally, Select a Transaction Subtype.





Creating Bank Statement Cashflows from Bank File (continued)


The Bank Statement Cashflow Creation concurrent program creates cashflows and raises journal entries for accounting. Created cashflows can be automatically or manually reconciledto bank statement lines that the cashflows are generated from.

To create Cashflows from Bank Statement Files, complete the following setup steps:

• Load and import the bank statement.

• Run the AutoReconciliation program for the bank statement.

- Note: To avoid creating cashflows for transactions already recorded in yoursystems, it is recommended that you run the AutoReconciliation program ormanually reconcile for the bank statement prior to running the Bank Statement

Cashflow Creation program.• Run the Bank Statement Cashflow Creation program for the bank statement to create

cash management cashflows.

Note: The program does not apply the mapping rules to reconciled bank statement lines orbank statement lines for which cashflows have been created in the past unless the cashflowhas been cancelled.

You can run Create Accounting concurrent program to process raised accounting events andcreate journal entries.







A cashflow will be created and an accounting event raised if a match as specified in the BankStatement Cashflow Mappings window for the bank account is found. The programautomatically generates the Bank Statement Cashflow Creation & Execution Report, whichlists all of the details of the created cashflows.

• You can account for these cashflows in your subledger by running the create accountingprogram.

- Note: Cashflows created from bank statements are created in a cleared statusbecause by nature they have already cleared the bank. These cashflows can notbe uncleared, but if they have not been reconciled they can be canceled.

• Run the AutoReconciliation program for the bank statement to reconcile the cashflowsthat were created.





Quiz

Answers: 1

Quiz Specifications

• The correct answer is “A bank account transfer is available for journal creation only afterit is validated”.





Quiz

Answers: 1, 3

Quiz Specifications

• The correct answer is “Cashflows can be generated using the Generate SweepTransactions and Cash Leveling programs among others”.





Quiz

Answers: 2

Quiz Specifications

• The correct answer is “Cash Management supports both automatic and manual creationof journal entries”.





Quiz

Answers: 3

Quiz Specifications

• The correct answer is “Payment Process Request”.





Summary




Managing Bank StatementsChapter 6 - Page 1

Managing Bank Statements

Chapter 6





Managing Bank Statements





Objectives





Agenda





Overview

Overview

This graphic depicts the Bank Statement process flow from receiving and loading bankstatement to performing reconciliation to creating journal entries and posting to GeneralLedger.





Entering Bank Information

Entering Bank Information

Prior to reconciliation, you must enter the bank statement data into Oracle Cash Managementmanually or using a Bank Statement Loader program, custom loader program, or automaticbank transmission feature.





Loading the Bank Statement Open Interface

Loading the Bank Statement Open Interface

This graphic depicts the process flow of loading the bank statements.

Using the Bank Statement Open Interface

Before you can reconcile transactions with a bank statement, you need to enter the bankstatement information into Oracle Cash Management.

If your bank provides bank statements in a flat file, you can use the bank statement openinterface to load this information into Oracle Cash Management.

The Bank Statement Open Interface consists of two bank statement open interface tables:

• Bank Statement Headers Interface Table CE_STATEMENT_HEADERS_INT_ALL

• Bank Statement Lines Interface Table CE_STATEMENT_LINES_INTERFACE





Loading Bank Statement Open Interface: Using the BankStatement Loader Program

Loading Bank Statement Open Interface: Using the Bank Statement LoaderProgram

This graphic depicts the process flow of loading bank statements using the loader program.

Use the Bank Statement Loader program to map and transfer bank statement data from anelectronic bank statement into the open interface tables in Oracle Cash Management.

You can execute the Bank Statement Loader program in one of the following modes:

• Load

• Load and Import: Bank Statement Import program starts after the Bank StatementLoader program completes successfully.

• Load, Import, and AutoReconciliation: Bank Statement Import and AutoReconciliationprograms launch after successful completion of the Bank Statement Loader program.

In either case, if the Bank Statement Loader program completes with errors or warnings, theconcurrent request terminates. You can review the exceptions encountered by the BankStatement Loader program using the Bank Statement Loader Execution Report.





Loading Bank Statement Open Interface: Using a Custom LoaderProgram

Loading Bank Statement Open Interface: Using a Custom Loader Program

First, define own bank statement mapping rule if necessary. Then, run the custom loaderprogram against the bank statement file to populate the Bank Statement Open Interfacetables. Verify that the bank statement data was loaded into the open interface tables correctly.

You can use the Bank Statement Interface window to ensure that bank statement headerinformation is correctly inserted into the CE_STATEMENT_HEADERS_INT_ALL table.

You can use the Bank Statement Interface Lines window to ensure that bank statementtransaction lines are correctly inserted into the CE_STATEMENT_LINES_INTERFACE table.

The Bank Statement Interface and Bank Statement Interface Lines windows show you the

statement header and lines information in the open interface tables. You can correct the datausing these windows or you can correct the original bank statement file and reload it usingyour custom loader program.





Loading Bank Statement Open Interface: Intra-Day BankStatement Loader Program

Loading Bank Statement Open Interface: Intra-Day Bank Statement LoaderProgram

Use the Intra-Day Bank Statement Loader program to load updated bank statements.

• The Load option loads the bank statement data into the Bank Statement Open Interfacetables, where you can make corrections prior to import.

• The Load and Import option automatically starts the Intra-Day Bank Statement Importprogram after the Intra-Day Bank Statement Loader program completes.

When submitting the intra-day bank statement loader program, you must:

• Use the Bank Statement Loader Execution Report to review any exceptions.

• Set up Oracle Treasury for integration with Oracle Cash Management.

• Create a SQL*Loader script for the format of your bank statement, if it is neither BAI2nor SWIFT940.

• Define a mapping template for the format of your bank statement file.





Loading Bank Statement Open Interface: XML Bank Statements

Loading Bank Statement Open Interface: XML Bank Statements

You can set up the XML Gateway to receive XML bank statements automatically from yourbank. The bank delivers the prescheduled bank statements to the XML Gateway, whichvalidates the message, populates the Bank Statement Open Interface tables, and launchesthe Bank Statement Import program to transfer bank statement data to Cash Management. Ifthe validation fails, the XML Gateway sends e-mail notifications to the administrator and bankcontact.

When setting up your system to receive XML bank statements, ensure that Oracle XMLGateway, Oracle Advanced Queuing, and Oracle Workflow Business Event System areinstalled and both the bank and your system should use Oracle Transport Agent. If the bank isnot using Oracle Transport Agent, the bank needs to integrate its communication software to

conform to the Oracle Transport Agent message protocol.





Importing Bank Statements

Importing Bank Statements

You must import the bank statement data into the Cash Management Bank Statement tables ifyou load them into the Bank Statement Open Interface tables and if you are to reconcile.





Importing Bank Statements: Bank Statement Validation

Importing Bank Statements: Bank Statement Validation

Use the AutoReconciliation Execution Report or the View Reconciliation Errors window toreview any import validation errors.

• Use the concurrent request log file to review any errors or warnings related to Treasury.

• Use the Bank Statement Interface window to correct any import validation errors.





Reviewing and Correcting Bank Statement Interface Errors

Reviewing and Correcting Bank Statement Interface Errors

Bank Statement Interface Errors

Use the Bank Statement Interface window to review import validation errors from the BankStatement Open Interface tables.

Review the AutoReconciliation Execution Report.

Review all import and validation errors for a statement.





Entering Bank Statements Manually

Entering Bank Statements Manually

Prerequisites in Entering Bank Statements

• Define your banks.

• Define bank transaction codes for the bank account.

• Set up receivables activities and payment methods for miscellaneous transactions.

• Set up sequential document numbering for Cash Management.





Entering Bank Statements Manually (Continued)





Quiz

Answers: 1

Quiz Specifications

• The correct answer is “If the validation of bank statements fails, the XML Gateway sendse-mail notifications to the administrator and bank contact”.





Quiz

Answers: 2, 4

Quiz Specifications

• The correct answer is “When you load bank statement information into the BankStatement Open Interface tables, the Bank Statement Import program performs thefollowing validations: Bank statement header, Control total, Statement line, andMulticurrency”.





Quiz

Answers: 1

Quiz Specifications

• The correct answer is “You can correct the data using the Bank Statement Interface andBank Statement Interface Lines windows”.





Quiz

Answers: 1, 2, 4

Quiz Specifications

• The correct answer is “Load, Load and Import, and Load, Import, and AutoReconciliationare the valid modes for execution of the Bank Statement Loader program”.





Summary




Reconciling Bank StatementsChapter 7 - Page 1

Reconciling Bank Statements

Chapter 7





Reconciling Bank Statements





Objectives





Agenda





Overview

Overview

This graphic depicts the Bank Statement process flow from receiving and loading bankstatement to performing reconciliation to creating journal entries and posting to GeneralLedger.

You can use the AutoReconciliation program to automatically reconcile any bank statement inOracle Cash Management.

After you run the program, you can review the AutoReconciliation Execution Report to identifyany reconciliation errors that need to be corrected. You can run this report automatically or asneeded, and also review reconciliation errors online.

After automatically reconciling a bank statement and correcting any reconciliation errors, youcan run the Bank Statement Detail Report, which shows statement and transaction data for aspecific bank account statement, any unreconciled transactions separately with their currentstatus, and the statement totals for each transaction type. Or you can use the View BankStatements window to review reconciled and unreconciled statement lines. If lines remainedunreconciled, you can update the bank statement and rerun the AutoReconciliation programand reconcile the statement lines manually.

Once you have reviewed your reconciliation results, you can transfer the accounting entries toyour general ledger from Oracle Payables and Oracle Receivables. If you use Oracle General





Ledger, you can reconcile you General Ledger cash account balance to your bank accountbalance by running the GL Reconciliation Report.





Overview (Continued)

Overview (continued)

You can run the following programs from the Submit Request, Reconcile Bank Statements, orthe Bank Statement Interface windows. You can also import and automatically reconcile abank statement from the Bank Statement Loader program by selecting the Load, Import, andAutoReconciliation option.

• AutoReconciliation: Used to reconcile any bank statement entered in CashManagement.

• Bank Statement Import: Used to import an electronic bank statement after loading thebank statement file into the Bank Statement Open Interface tables

• Bank Statement Import and AutoReconciliation: Used to import and reconcile a bankstatement in the same run.







Bank reconciliation features linking to multiple sources such as Oracle Payables, OracleReceivables, Oracle Payroll, Oracle Treasury, and Oracle General Ledger from Oracle CashManagement.







Bank reconciliation features reconciling bank accounts across different operating units.





Single European Payments Area (SEPA) Credit Transfer

Single European Payments Area (SEPA) Credit Transfer

Oracle Cash Management is an enterprise-wide solution for managing liquidity and controllingcash. In this release, Cash Management provides new features to support the SingleEuropean Payments Area (SEPA) framework. SEPA has been adopted by 27 EU memberstates plus Iceland, Liechtenstein, Norway and Switzerland.

In order to be able to make SEPA payments, the following information (amongst others) ismandatory:

• BIC (Bank Identifier Code) for the Supplier Bank Branch

• IBAN (International Bank Account Number) for the Payer and Supplier Bank Accounts





SEPA Credit Transfer: Bank Identifier Code (BIC) Validation

SEPA Credit Transfer: Bank Identifier Code (BIC) Validation

The BIC is mandatory in the SEPA messaging as the beneficiary bank branch is identified withthe BIC code.

The BIC consists of the following elements:

• 4 characters for the bank code

• 2 characters for the country code (ISO3166-1)

• 2 characters for the location code

• 3 characters for the branch code (optional)

An example of BIC-8 is DEUTDEFF, the BIC for Deutsche Bank, country=DE (Germany),location=Frankfurt. The BIC-11 DEUTDEFF500 would direct a payment to a specific branch of

Deutsche Bank.This BIC structure will be validated when BICs are entered in the system. Followingvalidations are applied:

• While entering the BIC, the special characters are not be allowed.

• If the numbers of characters entered are not equal to 8 or 11, "The number of charactersentered is not equal to 8 or 11. Please correct the BIC code." error message pops upwhen the form is form is tabbed or the form is saved.





Note: The BIC validation will be done in the Supplier Bank Branch screens. It will also bevalidated when the BIC code is entered from the supplier's screen during defining an externalbank account.





SEPA Credit Transfer: International Bank Account Number (IBAN)Validation

SEPA Credit Transfer: International Bank Account Number (IBAN) Validation

The IBAN consists of up to 34 contiguous alphanumeric characters containing the followingconsecutive components:

• Country code: 2 letter country code, as specified in ISO 3166, of the country in which thebank or branch servicing the IBAN resides.

• Check digits: 2 digits (which is calculated from a modulus algorithm).

• Basic Bank Account Number (BBAN): up to 30 alphanumeric characters, 0-9, A-Z (onlyuppercase), no separators. The BBAN has a fixed length per country. The BBANincludes an explicit identification code of the bank/branch servicing.

• Some countries also add the first 4 characters of the BIC code (between the check digitsand the basic bank account number).

The IBAN is validated using MOD97 check.





SEPA Credit Transfer: Enable Reconciliation at Payment GroupLevel

SEPA Credit Transfer: Enable Reconciliation at Payment Group Level

If the batch booking flag is enabled for the payments, then banks make a batch entry for thesum of the all the payments within a group. As a result, the bank statements sent by the bankwill contain the payment group number and payment amount.

The reconciliation and clearing logic in Oracle Cash Management has been enhanced to allowManual and Automatic Reconciliation of bank statements with Payment Group number.

Note: For a payment batch created in Oracle Payments to appear in Oracle CashManagement ( for Reconciliation), it is mandatory that the minimum grouping parameters usedin payment instruction are as follows:

• Internal bank account• Payment currency

• First Party Organization (Operating Unit)





SEPA Credit Transfer: Reconciliation logic for ManualReconciliation

SEPA Credit Transfer: Reconciliation logic for Manual Reconciliation

In batch booking, a flag identifies whether a single entry per individual transaction or a batchentry for the sum of the amounts of all transactions in the message is requested.

• So, if a payment instruction contains 4 payments valuing EUR 10,000, EUR 20,000,EUR 30,000, and EUR 40,000 in 1 group and the batch booking flag is checked, thenthe bank statement will have one debit transaction line for the entire group totaling EUR100,000.

• If the batch booking flag is not checked, there will be 4 debit lines for each of thepayment line with the respective amounts in the bank statement.

In the Bank Statement window, earlier the reference number field contained the logic to pickthe available transactions based on the 'payment reference number' and 'batch name', whichhas been enhanced to capture the 'payment group number' also.

In the available transactions window, a radio button for 'Group' has been added after the'Batch'. The transactions available for selection will be of 'Payments' category.

A new 'Group Numbers' field with From and To values has been added in the availabletransactions window. This Group Numbers field is disabled when 'Detail', 'Batch', or 'OpenInterface' is selected.





SEPA Credit Transfer: Reconciliation logic for AutomaticReconciliation

SEPA Credit Transfer: Reconciliation logic for Automatic Reconciliation

In the Bank Setup window, a new 'Group' parameter has been added in the PaymentMatching Order. The payment can be matched earlier per batch or transaction.

The matching order is enhanced to specify the priority of matching. Since there will be nowthree values for matching the values, a new matching order has been added for OraclePayables. The matching order fields are provided as 'Payables Matching Order 1' and'Payables Matching Order 2'.

The system will first match the value entered in the 'Reference Number' field with the selectionin 'Payables Matching Order 1'. If the value is matched, then the transactions that fall in this

matching order are reconciled. If the value does not match with the 'Payables Matching Order1', then the system checks the value with the selection in 'Payables Matching Order 2'. If thevalue is matched, then the transactions that fall in this matching order are reconciled. Else, thesystem updates the transactions based on the parameter that is not selected in the matchingorder.

The Automatic reconciliation report has been enhanced to give a message when notransactions are found for a Group similar to what it gives now when there are no matchingtransactions for a Batch or a Payment.





Reconciling Bank Statements Automatically

Reconciling Bank Statements Automatically

This graphic depicts the AutoReconciliation lifecycle flow.

The AutoReconciliation Execution Report is automatically produced by Oracle CashManagement during the AutoReconciliation process.

• It shows import and reconciliation errors that occurred during the AutoReconciliationprocess.

• It lists receipts created in Receivables during AutoReconciliation.

• It includes either statement import errors or your reconciliation exceptions found duringAutoReconciliation.





Reconciling Sweep Transactions

Reconciling Sweep Transactions

Before AutoReconciliation, you can automatically create and settle transactions in OracleTreasury corresponding to the sweep statement lines if a match is not found. You run theSweep Transactions Generation program, which searches for treasury transactions that matchthe sweep statement lines details and corresponding cash pool. You can then run theAutoReconciliation program to reconcile the bank-initiated Sweep statement lines.

Sample BAI2 Bank File with Sweep Transactions

01,121000248,0060981,991105,0727,0727,80,1,2/

02,0060981,121000248,1,991104,0000,USD,/

03,4510001011,,,015,5000000,,,045,5000000,,,040,5000000,, 400,35789779,3,/

88,100,35789779,1,,072,0,,,050,5000000,,/16,275,45592306,0,,,ZBA TRANSFER FROM: 4522020841

16,575,547940,,,ZBA TRANSFER TO: 4091214650

16,575,9432205,,,ZBA TRANSFER TO: 4091214668 49,163159116,8/

98,23032892911,21,161/

99,23032892911,1,163/





Reconciling Sweep Transactions (Continued)

Reconciling Sweep Transactions (continued)

During automatic deal generation, the following error messages are shown in the output file:

• Transaction generation failure, incomplete cash pool setup

• Transaction generation failure, mandatory fields missing

• Transaction generation failure, bank account number is missing

• Transaction generation successful, with a limit warning

• A duplicate transfer already exists





Defining Reconciliation Tolerances

Defining Reconciliation Tolerances

You can define reconciliation tolerances for the AutoReconciliation program, which reconcilesPayables payments and Receivables receipts within tolerances and automatically posts anyamount differences. General Ledger journal entries are automatically reconciled in CashManagement only if the journal line amount and the bank statement line amount are the same.For Treasury settlements and external transactions in the Reconciliation Open Interface,tolerances are ignored when you use the matching criteria of date and amount. If you chooseto match by transaction number, tolerances are verified but amount differences are notautomatically accounted. For security, tolerances are not allowed on payments and voidedpayments that are generated by Payroll.

If the payment amount and the statement line amount difference is within defined tolerances,

AutoReconciliation posts the difference to either the Payables Bank Charges account or theBank Errors account, depending on how you defined the Cash Management PayablesTolerance Differences system parameter. If the receipt amount and the statement line amountdifference is within defined tolerances, the program posts the difference to the ReceivablesBank Charges account. For matching remittance batches using reconciliation tolerances, youcreate a miscellaneous transaction for the the remittance batch amount and the bankstatement line difference by an entry in the Cash Management Receivables Activity systemparameter.





Multicurrency Matching and Clearing

Multicurrency Matching and Clearing

The AutoReconciliation program handles statement line matching to transactions differently,depending on the bank account currency.

• The transaction amount is the amount recorded in the system.

• The tolerance amount in the bank account definition is always in the bank accountcurrency.

• The minimum of the percent and amount tolerance is used as the actual tolerance.

• Reconciliation supports the following currency scenarios:

- Domestic: Functional, bank account and transaction currencies are same.

- Foreign: Bank account (USD) and transaction (USD) currencies are same but

functional currency (EUR) is different.- International: Functional (USD) and bank account (USD) currencies are same but

transaction currency (EUR) is different.

Clearing takes place after matching, so any difference between the statement line amount andthe original transaction amount is already verified to be within the specified tolerance limit.

Cash Management determines clearing amounts for the charges, errors, and foreign gain/lossaccounts as necessary to clear the transaction.





Value Date Support

Value Date Support

Value Date Support in Oracle Payables and Oracle Receivables

Postpone reconciliation in the System Parameters window if the value date on the statementline is greater than the current date. Enter the payment’s anticipated value date in Payables atcreation time. Update the actual value date for each payment during reconciliation. Value DateDerivation in Applications are as follows:

Oracle Payables: Anticipated Value Date, Actual Value Date

Oracle Cash Management: Bank Statement, Miscellaneous Transactions, Manual Clearing

Oracle Receivables: Anticipated Value Date, Actual Value Date

In the Forecast process, selection hierarchy for future Receipts and Payments are:

Receipts: Value Date (actual then anticipated), Maturity Date, and Latest Transaction DatePayments: Value Date (actual then anticipated), Maturity Date, and Payment Date

With value date support, you can calculate a more accurate short-term cash forecast basedon value date, track actual value dates and derive more accurate lead times, and calculate amore accurate interest on interest-bearing accounts.





Reviewing Reconciliation Errors

Reviewing Reconciliation Errors

After running AutoReconciliation, you can review any reconciliation error from the BankStatement or Bank Statement Line window. The Bank Statement window shows errors forboth statements and individual lines. To review import validation errors, use the BankStatement Interface window.

The Bank Statement Summary Report shows summary bank statement information for a bankaccount.

The Bank Statements by Document Number Report lists bank statements in documentnumber order, to help you identify missing and deleted statements. If you or your SystemAdministrator sets up the Document Sequences feature for Cash Management, then you canprint a report to list all bank statements in document number order.





Reconciling Bank Statements Manually

Reconciling Bank Statements Manually

When you use manual reconciliation, you can search for the following:

• Payroll or Payables payments, Receivables receipts, miscellaneous transactions, GL journal entries, open interface transactions, and specific statement lines

• Treasury settlements by using the Reconciliation Open Interface

• Customer or supplier transactions, batch name, or remittance number, ranges fortransaction numbers, transaction date, transaction amount, and maturity date

• Journal entries on period name, journal entry name, document number, or line number

As you reconcile a statement manually, you may need to create transactions to account fordifferences between the sum of the reconciled transaction and the line amount.





Reviewing Reconciled Transactions





Creating Payments and Receipts

Creating Payments and Receipts

The Cash in Transit Report lists, for a specific bank account, all transactions that have beenremitted to the bank but have not been cleared. It excludes all voided transactions and allreversed transactions which have a reversal date on or prior to the As of Date.





Creating Miscellaneous Transactions

Creating Miscellaneous Transactions

When you create a miscellaneous payment, it is actually recorded as a negative receipt.When you reconcile that miscellaneous payment, which is actually a negative receipt, it isreconciled to a payment bank statement line with a positive amount.

• Define receivables activities and payment methods for miscellaneous transactions.When you define a receivables activity with the type Miscellaneous Cash, you must alsoassign either an account or a distribution set to use for the miscellaneous transactionaccounting entries.

• In the Receivables Activities window in Receivables, enter values for asset tax code andliability tax code, if required.

• Set the AR: Allow Override Of Tax Code profile option. This, with your accountingmethod, controls whether you can override the default for the Tax Code field.

• Perform any additional setup required by Receivables to handle miscellaneous receipts,including defining receipt sources and distribution sets.

• Set up Sequential Numbering.





Recording Exceptions

Recording Exceptions

If you implement the automatic bank transmission feature, use the Payment ExceptionsReport to view payment exceptions generated by the bank and transmitted to your localdirectory. You can view the transmission history and the actual report in the Transmissionswindow. In the Find Transmissions window, choose the file type of EXCEPTION to queryexceptions reports. Select the File Text field of the file you want to view and choose Edit Fieldfrom the Edit menu. The Editor window displays the content of the file you selected.

To resolve the payment exceptions, you need to manually unreconcile the transactions inCash Management and void the payment in Payables.





Entering Reversals





Reconciling Corrections and Adjustments to Bank Errors:Reversal

Reconciling Corrections and Adjustments to Bank Errors: Reversal

A $100.00 check was recorded and shown on your bank statement as $10.00. The followingtable contains an example of a bank error:

Trx Number Line Number Amount Remarks

27 10 $10.00 Error (should be $100.00)

Reversal Method: The bank reverses the whole error transaction amount for the error andthe reversal entries to net out to zero. Then, the bank makes another transaction entry for thecorrect transaction amount. In this example, a reversal entry of $10.00- is created to offset theoriginal error entry, and a new correction entry is created of $100.00, as follows:

Trx Number Line Number Amount Remarks27 10 $10.00 Error

27 20 $10.00- Reversal Entry

27 30 $100.00 New Correction Entry

With the reversal method, the error and correction statement lines are match to one another.The correct transaction entry (line 30 above) is then matched to the actual transaction.





Reconciling Corrections and Adjustments to Bank Errors:Adjustment

Reconciling Corrections and Adjustments to Bank Errors: Adjustment

A $100.00 check was recorded and shown on your bank statement as $10.00. The followingtable contains an example of a bank error:

Trx Number Line Number Amount Remarks

27 10 $10.00 Error (should be $100.00)

Adjustment Method: The bank simply creates a new transaction entry to make up for thedifference between the original transaction amount and the error entry. In this example, thebank generates a new adjustment entry of $90.00, which is the difference between the originalerror amount of $10.00 and the correct amount of $100.00, as follows:

Trx Number Line Number Amount Remarks27 10 $10.00 Error

27 20 $90.00 Adjustment Entry

Regardless of which method the bank and you choose to use, and of whether you reconcileautomatically or manually, Cash Management allows you to match these statement linescorrectly and to provide the information on how the statement lines are reconciled to give youa good audit trail.





AutoReconciliation Matching

AutoReconciliation Matching

The AutoReconciliation program can match to a payment, receipt, miscellaneous payment, ormiscellaneous receipt line. The program handles both reversal and adjustment methods. Ifyou don’t have the transaction number, Cash Management will use the invoice and the agentbank account number to match.

Reversal Method: For example, if the reversal entry is a miscellaneous receipt, then theprogram matches to a payment or miscellaneous payment. If the amounts net out to zero,then the program assumes there is a match and reconciles the statement lines.

Adjustment Method: The statement line can be a payment, receipt, miscellaneous payment,or miscellaneous receipt, as long as the amount netted out is within the tolerance of theoriginal transaction.

If the error statement line is already reconciled to a transaction due to the amount differencebetween the transaction and statement line falling within the tolerance amount, you must firstunreconcile the error statement line before the AutoReconciliation program will reconcile itwith the correction statement line.





Manual Reconciliation Matching

Manual Reconciliation Matching

If you are reconciling bank statements manually, the Reconcile Bank Statements windowretrieves all available statement lines and transactions that match your selection criteria. Thenyou can decide how you want to reconcile the correction entry.

If you have already reconciled the error statement line to a transaction, you must firstunreconcile the error statement line before attempting to reconcile it with the correction entry.

Sometimes, a bank uses one correction entry to correct multiple error statement lines. Youcan manually reconcile between multiple statement lines.





Manually Clearing and Unclearing

Manually Clearing and Unclearing

Clearing and Reconciling Transactions in Oracle Payables

Clear payments in Oracle Cash Management. Reconciliation accounting entries for thepayments are created in Oracle Payables and are then ready to be transferred to the GeneralLedger Interface tables. The Cleared Transactions Report shows transactions that werecleared or reconciled both manually and automatically and can be submitted for Payablespayments only, receipts only, payroll payments, or all three.

Clearing and Reconciling Transactions in Oracle Receivables

You can clear receipts in Oracle Receivables prior to reconciliation to maintain current cashaccount balances. When you clear a transaction, you assign a cleared date and status to thetransaction, and data used to create accounting entries is recorded in Receivables. When youreconcile a transaction, the uncleared transaction is first cleared and then matched to bankstatements.





Transferring Bank Reconciliation Transactions to Your GeneralLedger

Transferring Bank Reconciliation Transactions to Your General Ledger

When you reconcile bank statement lines to journal entries in General Ledger, noreconciliation accounting entries are created. Transferring to General Ledger is only requiredfor entries created in Payables and Receivables. Cash Management does not providereconciliation accounting data to Payroll.

If you use General Ledger, you need to run the Journal Import program after transferring yourreconciliation accounting transactions from Payables or Receivables to create journal entriesbased on the reconciliation transactions. Once you run Journal Import, you need to post your journals in General Ledger.

Use the GL Reconciliation Report to reconcile the General Ledger cash account balance tothe bank statement closing balance and to identify any discrepancies in your cash position.The General Ledger cash account should pertain to only one bank account. The summaryreport lists the General Ledger cash account balance, an adjusted balance for the bankstatement, a separate adjustment amount for unreconciled receipts, payments, journal entrieswhich have been recorded in the General Ledger cash account, and bank errors. The detailreport provides details for the unreconciled items as well as the information contained in theSummary report.





Archiving and Purging

Archiving and Purging

After you import a bank statement into Oracle Cash Management, you can purge its data fromthe Bank Statement Open Interface tables. After you reconcile it, you can purge its data fromthe Bank Statement tables. To save a copy of your bank statement, you can archive the databefore you purge it. You can also archive or purge intra-day bank statement data from theBank Statement Open Interface and the Intra-Day Bank Statement tables.

You can run the Archive/Purge Bank Statements program to archive and purge. When theprogram completes, it automatically prints the Archive/Purge Bank Statements Report todisplay the number of headers and lines that were archived or purged.

When you purge a bank statement, you must also purge any system transactions reconciledto it. You periodically archive and purge your bank statement interface and bank statement

tables, or the retained information will continue to occupy valuable disk space. If you use CashManagement to reconcile journal entries in General Ledger, you should run the CashManagement Purge program before you purge journals in General Ledger.

To save your archived data to a file, use the ORACLE RDBMS Export utility. To restore datafrom a saved archive file, use first the ORACLE RDBMS Import utility to populate the specialarchive tables. Then, run a custom SQL* Loader script to transfer the data.





Archiving and Purging: Archiving and Purging Automatically

Archiving and Purging: Archiving and Purging Automatically

Archive tables to the bank statement or open interface tables

The Archive/Purge Bank Statements Report lists the number of bank statements (headers andlines) that were archived or purged from Oracle Cash Management.

The Bank Purging Execution Report displays the Oracle Payables and Oracle Payroll banks,bank branches, internal bank accounts and employee bank accounts that are processed bythe Bank Purging program.

Archiving and Purging Automatically

If you set the Archive and Purge options in the System Parameters window, you canautomatically archive or purge bank statement data from the Bank Statement Open Interface

tables after bank statements have been imported into Oracle Cash Management. You canalso automatically archive or purge imported intra-day bank statement data from the BankStatement Open Interface tables. To archive or purge data from the Bank Statement or Intra-Day Bank Statement tables, run the Archive/Purge Bank Statements program.





Summary





Quiz

Answers: 2

Quiz Specifications

• The correct answer is “A SEPA Credit Transfer (SCT) is a payment instrument for theexecution of credit transfers in Euro between two parties located in the SEPA (SingleEuropean Payment Area) zone”.





Quiz

Answers: 1, 2, 3

Quiz Specifications

• The correct answer is “During automatic sweep generation, the following error messagesare shown in the output file: Transaction generation failure, incomplete cash pool setup,Transaction generation failure, bank account number is missing, and Transactiongeneration successful, with a limit warning”.





Quiz

Answers: 2

Quiz Specifications

• The correct answer is “The three character for branch code element is optional in theBank Identifier Code”.





Quiz

Answers: 2, 4

Quiz Specifications

• The correct answer is “If the payment amount and the statement line amount differenceis within defined tolerances, AutoReconciliation posts the difference to either thePayables Bank Charges account or the Bank Errors account, depending on how youdefined the Cash Management Payables Tolerance Differences system parameter”.





Summary




Cash PoolsChapter 8 - Page 1

Cash Pools

Chapter 8





Cash Pools





Objectives





Agenda





Overview

Overview

Cash leveling or Cash Pooling is a cash management technique aimed at optimizing thebalances of the internal bank accounts held at one or several banks. It is usually performed ona daily basis and can be done by transaction or by total net end-of-day balances.

To perform cash leveling, you need to define a cash pool and assign internal bank accountsset up in Oracle Treasury to the cash pool.





Creating Cash Pools

Creating Cash Pools

A cash pool is a group of bank accounts with one or more concentration accounts and multiplesub accounts. You can create the following two types of cash pools: notional cash pools andphysical cash pools.





Viewing and Updating Cash Pools

Viewing and Updating Cash Pools

Note: If you have the appropriate user security, you can update the cash pool.





Quiz

Answers: 1

Quiz Specifications

• The correct answer is “Cash leveling can be done by transaction or by total net end-of-day balances”.





Quiz

Answers: 1

Quiz Specifications

• The correct answer is “To perform cash leveling, you need to define a cash pool andassign internal bank accounts set up in Oracle Treasury to the cash pool”.





Quiz

Answers: 2

Quiz Specifications

• The correct answer is “Physical Cash Pools consist of one or two concentrationaccounts and multiple sub-accounts”.





Quiz

Answers: 2

Quiz Specifications

• The correct answer is “Cash leveling can only be performed daily”.





Summary




Cash PositioningChapter 9 - Page 1

Cash Positioning

Chapter 9





Cash Positioning





Objectives





Agenda





Overview

Overview

The daily cash positions are based on actual cash flows from various Oracle Applications. Youcan generate a daily cash position for single or multiple currencies, bank accounts, and legalentities.





Creating Cash Position Worksheets

Creating Cash Position Worksheets

A worksheet contains cash position specifications to determine the presentation of sources(rows) and bank accounts (columns) for your cash position. You can customize your cashposition worksheets by specifying the sources and transaction source defaults or you canchoose to manually set the parameters for the transaction source. Then, you can save yourworksheet and use it to generate your daily cash positions. This process gathers currentsource data from the selected Oracle Applications.

You can specify the sources you want to include in the cash position to create custom cashposition worksheets. You can include transaction source defaults or you can choose tomanually set the parameters for the transaction source. For more information on source typespecifications, refer to Cash Position Worksheet Page Reference.





Creating Cash Position Worksheets: Source Transaction Dates

Creating Cash Position Worksheets: Source Transaction Dates

This table lists the source transaction dates.

When Cash Management collects the source data for a cash position, it includes sourcetransactions whose cash activity date is the As Of Date for the cash position. CashManagement searches for a valid date in the sequence indicated, using the first date it finds.The table on the slide explains which date is used as the expected cash activity date.





Creating Cash Position Worksheets: Overdue Transactions

Creating Cash Position Worksheets: Overdue Transactions

This table lists the overdue transactions.

The table on the slide contains cash forecasting overdue transaction sources. Overduetransactions are open transactions with a cash activity date before the cash position As ofDate.

You can include or exclude overdue transactions for all appropriate source transaction typesin your cash positions. Including overdue transactions gives you an accurate representation ofpotential cash inflows and outflows.





Generating Cash Positions From Worksheets

Generating Cash Positions From Worksheets

You can define reusable worksheets for generating cash positions. When you submit a cashposition, Cash Management collects the necessary source data and summarizes them ascash position amounts, based on the cash position worksheet specifications. The cashposition data is then available for update, inquiry, viewing in a Discoverer Workbook, or forexport to a spreadsheet application.

You can generate a new cash position because you have created a new worksheet orbecause you want to recalculate a cash position with different submission parameters.





Generating Cash Positions From Worksheets (Continued)

Generating Cash Positions From Worksheets (continued)

Calculation of Opening and Closing Bank Account Balances in Cash Positioning

In calculating the opening balance, you determine the balance type and float type used byyour selections in the cash position worksheet.

If the previous day’s closing balance is not available, the latest available bank accountbalances are displayed instead. The cash position results also show a Prior Day Cashflowsrow that includes transactions between the latest available balance date and the CashPosition As of Date.

For cash pools in the cash position, the opening balance is the sum of the previous day’sbalances or the last available balance for all the bank accounts included in the cash pool.







Calculation Of Opening and Closing Bank Account Balances in Cash Positioning

You can also define target balances for bank accounts defined in the Company Profileswindow in Oracle Treasury. These target balances are displayed in the cash position and helpyou determine the surplus or deficit balance for bank accounts that you include in your cashposition.







Balance Gapping in Cash Positioning

A balance gap arises when you have gaps in your cash flows between the current systemdate and your defined until date. This gap can occur under the circumstances mentioned onthe above slide.





Generating a Cash Leveling Proposal

Generating a Cash Leveling Proposal

If your cash position includes cash pools, you can generate a cash leveling proposal from theCash Position Results Page, in the Bank Account View Page, or Cash Pool View Page, basedon the Sub Account target balances and transfer amount calculation rules.

Subsidiary bank accounts of the cash pool are included in the cash leveling proposal, but theprojected closing balance is not calculated for them. Instead, the opening balance is used incalculations. You can update the transfer amount calculated and click Recalculate NewClosing Balance to recalculate the closing balances.





Generating a Cash Leveling Proposal (Continued)

Generating a Cash Leveling Proposal (continued)

For two concentration accounts, the calculation of the transfer amount is the same as withonly one concentration account, but differing in the transfer amount destination. The subaccount payments goes to the investment concentration account and the receipts to the subaccount originates from the funding concentration account. For sub accounts of subsidiaries,the opening balance is used.





Viewing Cash Position Results

Viewing Cash Position Results

Your cash position results are displayed by currency, bank account, or cash pools, dependingon your selection in the View By field in the Generate Cash Position page. You can switchamong the three views by selecting the appropriate value in the View By field and clickingRefresh Data. Cash Management displays the cash position results in a spreadsheet formatwith the rows representing the cash flows and the balances and the columns representingeither bank accounts, currencies, or cash pools.

In the Cash Position Results: Currency View page, your cash position results are displayed bycurrency with each column representing a currency included in your position. If you includedsubsidiary bank account balances in your cash position, they are added to the openingbalance for the currency corresponding to the subsidiary bank account’s currency. This page

also displays the available liquidity for Oracle Treasury users. You can:• Export the cash position results to an external application like Microsoft Excel by clicking

Export.

• Access the Inter-Account Transfers window in Oracle Treasury by selecting Initiate FundsTransfer, only available to Oracle Treasury users.

• View cash position details in a Discoverer workbook.





• Drill down to transaction details corresponding to the deal types of short term money,discounted and fixed income securities in the Available Liquidity section.





Viewing Cash Position Results (Continued)

Viewing Cash Position Results (continued)

In the Cash Position Results: Bank Account page, the results of your cash position aredisplayed by bank account with each column representing a bank account included in yourposition. If you included subsidiary bank account balances in your cash position, they aresummarized by currency and displayed in a separate section below the cash position results.In this page, you can:

• Generate balance gapping by clicking View Balance Gapping.

• Export the cash position results to an external application like Microsoft Excel by clickingExport.

• Access the Inter-Account Transfers window in Oracle Treasury by selecting Initiate FundsTransfer, only available to Oracle Treasury users.

• View the details of the cash position in a Discoverer workbook by selecting View inDiscoverer Workbook, available only if Oracle Discoverer is installed.

• Drill down to the details of the transaction corresponding to the deal types of short termmoney, discounted securities and fixed income securities in the Available Liquiditysection by clicking on an amount.





Exporting Cash Position Results to Your Spreadsheet Application

Exporting Cash Position Results to Your Spreadsheet Application

You can transfer cash position results to your spreadsheet application. Microsoft Excel can beused to manipulate information for analysis and graphical representation. Use the Exportbutton in the Cash Position Results page to export cash positions from Cash Management toMicrosoft Excel. This option is available only on the Windows platform, and only if MicrosoftExcel is installed.





Viewing Cash Positions in Discoverer

Viewing Cash Positions in Discoverer

This table depicts how you can view the cash positions in Oracle Discoverer workbooks.

You can view cash position results in a Discoverer Workbook. Through Oracle Discoverer,you can manipulate data for analysis and graphical representation. Click View in Discoverer inthe Cash Position Results page, an option only available if you have Oracle Discovererinstalled.





Quiz

Answers: 2

Quiz Specifications

• The correct answer is “The expected activity dates for Customer Receipts type in theCash Position Worksheet are Value Date (Actual then Anticipated), Maturity Date, orLatest Receipt Transaction Date”.





Quiz

Answers: 1

Quiz Specifications

• The correct answer is “You cannot create cashflows from cash positions”.





Quiz

Answers: 2

Quiz Specifications

• The correct answer is “Closing Balance = Opening Balance + Prior Day Cash Flows +Net Cash Flow”.





Quiz

Answers: 2, 3, 4

Quiz Specifications

• The correct answer is “Supplier Payments, Customer Receipts, Treasury Inflow, andTreasury Outflow”.





Summary




Cash ForecastingChapter 10 - Page 1

Cash Forecasting

Chapter 10





Cash Forecasting





Objectives





Agenda





Sources for Cash Forecasting

Sources for Cash Forecasting

Cash Inflow Sources

• Receivables: unpaid customer invoices and cleared customer receipts (historical) anduncleared cash receipts (future), excluding reversed receipts

• General Ledger: revenue account budget amounts

• Treasury: money market, foreign exchange, exposure transactions, investment income

• Projects: billing events, budget inflows

• Sales: sales opportunities that have not been ordered or invoiced

• Order Management: uninvoiced sales orders projected to be paid by customer,excluding commitments

• External sources: external inflow transactions from open interfaces

• User defined: Manually entered amounts

Cash Outflow Sources

• Payables: supplier invoices, supplier payments (historical and future), expense reports

• General Ledger: GL encumbrances and GL budget outflows

• Treasury: outflow transactions





• Projects: project transactions, outflow budgets, expense reports

• Payroll: historical payroll expenses

• Purchasing: purchase orders, purchase requisitions

• External sources: outflow transactions from external sources

• User defined: Manually entered amounts





Cash Forecasting and Cash Positioning

Cash Forecasting and Cash Positioning

This table depicts the differences between Cash Forecasting and Cash Positioning.





Defining a Cash Forecast Template

Defining a Cash Forecast Template

A template contains cash forecast specifications. When creating a template, you specify thenumber and type of rows and columns. Templates determine the presentation of sources(rows) and forecast periods (columns) for your cash forecasts. Templates also include thename, description, and forecast period types ( GL periods or days). Each row contains asource type, such as supplier invoices, and selection criteria, such as set of books, pay group,and bank account.

You can specify how to organize cash forecast data, including which sources supply forecastdata (rows), and for which forecast periods (columns) you are generating data. Once atemplate definition is complete, you can submit a request to produce timely cash forecasts bygathering current source information from the selected Oracle Applications.

Forecasting Overdue Transactions

You can include or exclude overdue transactions for all appropriate source transaction typesin cash forecasts. Including overdue transactions gives you an accurate representation ofpotential cash inflows and outflows.

Overdue transactions are collected into one forecast period and displayed in the OverdueColumn in the Cash Forecast Amounts window and the Cash Forecast Report.





Generating a Cash Forecast: Multicurrency Forecasts

Generating a Cash Forecast: Multicurrency Forecasts

By using currency related submission parameters, convert all transaction amounts to adesired currency to display in the result. Set the program to pick only the transactions incertain transaction currency or functional currency, if required.





Modifying a Cash Forecast

Modifying a Cash Forecast

This table describes the modification options for a cash forecast.

You can modify cash forecast templates and forecasts, with some limitations. The table on theslide addresses what you can change on cash forecast templates and cash forecasts.





Exporting Cash Forecasts to Your Spreadsheet Application

Exporting Cash Forecasts to Your Spreadsheet Application

This graphic depicts the process flow to export cash forecasts to a spreadsheet.

You can transfer cash forecast results to your spreadsheet application. Microsoft Excel can bevery useful to manipulate information for analysis and graphical representation.

Use the Export button in the Cash Forecast Results page to export cash forecasts from CashManagement to Microsoft Excel.





Implementation Considerations





Using Cash Forecasting Reports

Using Cash Forecasting Reports

You can also run:

• Cash Forecast Template Listing Report: shows details of a cash forecast template

• Purge Cash Forecasts Report: purges old cash forecasting results

Cash Forecast Template Listing Report

• Use this report to see details for a cash forecast template.

• Run this report from the Submit Request window.

Cash Forecast Execution Report

• Includes data errors produced by the Submit Forecasts programs when you generate acash forecast.

• Automatically generated when you generate a cash forecast.

• Can be printed later using Submit Requests.

Cash Forecast Report

• Automatically generated when you successfully run a cash forecast template.

• Can be printed later using Submit Requests.





• If you submit this report using Oracle Report eXchange, then you can export the data toyour spreadsheet application.

• You can also view cash forecast amounts online.

Purge Cash Forecasts Report

• Automatically generated when you run the Purge Cash Forecasts program.

• Lists cash forecasts that have been successfully purged.





Quiz

Answers: 2

Quiz Specifications

• The correct answer is “GL encumbrances and GL budget outflows are outflow sourcesand revenue account budget amounts are inflow sources for Cash Forecasting. ”.





Quiz

Answers: 4

Quiz Specifications

• The correct answer is “You cannot generate cash forecast data online as in CashPositioning but through concurrent programs and manually.”.





Quiz

Answers: 1

Quiz Specifications

• The correct answer is “It is possible to have user defined inflow and outflow sources forCash Forecasting”.





Quiz

Answers: 1

Quiz Specifications

• The correct answer is “You can delete rows and columns for new templates whilemodifying a Cash Forecast”.





Summary




Accounting EventsChapter 11 - Page 1

Accounting Events

Chapter 11





Accounting Events





Objectives





Overview of Accounting and Cash Management

Overview of Accounting and Cash Management

This graphic depicts the relationship of Cash Management, Subledger Accounting, and GL.

You can automatically create accounting entries for bank account transfers and bankstatement cashflows using Oracle Subledger Accounting (SLA). You can also create manual journal entries if you need to account for any business events not related to bank accounttransfers and cashflows.

Oracle Subledger Accounting is a rule-based accounting engine that centralizes journal entrycreation for E-Business Suite products. SLA creates journal entries for subledgers andtransfers them to Oracle General Ledger.

Cash Management provides predefined rules that SLA uses to create journal entries for eachaccounting event. You can also define your own accounting rules.

SLA allows multiple accounting representations for a single business event, resolvingdifferences between corporate and local fiscal accounting requirements. The most granularlevel of journal entry detail is retained in the subledgers and summarized in General Ledger.

You can view all journal entries produced by Cash Management accounting events in theTransactions pages in Cash Management. You can also drill down from the journal entry inGeneral Ledger to view its source transaction in Cash Management.





Oracle Subledger Accounting

Oracle Subledger Accounting

Oracle Subledger Accounting (SLA) is primarily a rule-based accounting engine thatcentralizes accounting for Oracle E-Business Suite products as well as providing anaccounting toolset and repository. It is not a separate product in itself, but it is Oracle ’s enginecatering to the accounting needs of both Oracle and external modules.

Together with the ledger support, it enables support of multiple accounting requirementsconcurrently in a single instance. Different accounting regulations can be satisfied bymaintaining and applying different sets of rules to different sets of transactions. It can alsoprovide accounting for the same transaction with multiple methods.

By maintaining a full link between the transaction and accounting data, it allows powerfulreconciliation and auditing capabilities.

SLA provides the setup user interface (UI), inquiry UI, and data model for accounting acrossOracle E-Business Suite modules. This common UI provides consistency in reporting,analysis, and user experience.





Oracle Subledger Accounting Integration

Oracle Subledger Accounting Integration

This graphic depicts the Subledger Accounting Integration.

Oracle Subledger Accounting integrates with the following E-Business Suite applications:

• Payables

• Receivables

• Projects

• Assets

• Costing

• OPM

• Public Sector/Federal• Payroll

• Property Manager

• Loans

• Lease Management

• Intercompany

• Cash Management





• Globalizations

For complete details regarding Subledger Accounting, see: Oracle Subledger AccountingImplementation Guide.





Subledger Accounting: Key Concepts

Subledger Accounting Key Concepts

The event model defined in SLA for each subledger represents the transaction or documenttypes and the lifecycle of each transaction:

• Event class classifies transaction types

• Event type defines possible actions on each event class with possible accountingsignificance.

The journal creation rules are defined per event class and event type.

Transaction object and sources are the data model for each subledger that contains thetransaction attributes and information made available to be used during journal rule setup and journal entry generation.





Subledger Accounting: Key Concepts in Cash Management

Subledger Accounting Key Concepts in Cash Management

In Cash Management, there are two event classes: Bank Account Transfer and BankStatement Cashflows. SLA uses seeded accounting rules to create journal entries for eachevent type.

Bank Account Transfer: An accounting event is raised when a bank account transfer iscreated, canceled, cleared or uncleared.

If you run the Create Accounting Program to create accounting for these event types, noaccounting is created. Additionally, once the Bank Account Transfer is cleared and the CreateAccounting Program is successfully run, the status of the accounting events is set to ‘PartiallyAccounted’ rather than ‘Accounted’, even though the accounting entries have been created.This is intended. This is because there are no Journal Line Definitions seeded for the event

type ‘Bank Account Transfer Created’ If you create journal entries for the Bank Account Transfer Create event and then cancel thebank account transfer, the Bank Account Transfer Canceled event will produce reversing journal entries. If you cancel a bank account transfer before creating journal entries, then no journal entries are created at all.

Each bank account transfer produces two cashflows: an outflow for the source bank accountand an inflow for the destination bank account. Since you clear bank account transfers bybank account, the clearing status of cashflows can be different.





Bank Statement Cashflows: An accounting event is raised when a bank statement cashflow isrecorded or canceled.

If you create journal entries for the Bank Statement Cashflow Recorded event and then cancelthe bank statement cashflow, the Bank Statement Cashflow Canceled event will producereversing journal entries. If you cancel a bank statement cashflow before creating journalentries, then no journal entries are created at all.





Subledger Accounting: Setup and Process

Subledger Accounting Setup and Process

You can define your own accounting rules in addition to the accounting rules seeded for CashManagement, The setup for subledger accounting is common for all subledger applicationsand involves setting up journal entries, defining a subledger accounting method and assigningthe subledger accounting method to the ledger. The setup steps are described in detail in theOracle Subledger Accounting Implementation Guide.





Subledger Accounting Process for Cash Management

Subledger Accounting Process for Cash Management

(N) Other: Programs > Run

Accounting Process in Cash Management

To create journal entries, run the Create Accounting program. This program retrieves alleligible accounting events, creates journal entries, and transfers them to GL. You canschedule this program to run at specific times if you want.

Run this program in Draft mode if you want to review the journal entries before they arecreated in the system. You can also specify other parameters to determine whether toautomatically transfer and post journal entries to General Ledger when the program runs or tospecify which accounting events to capture.

Parameters• Process Category: Bank Account Transfers Cashflows, Bank Statement Cashflows,

Manual, Third Party Merge or leave blank to create journal entries for all availableaccounting events.

• End Date: Specify the last date

• Mode: Draft or Final

• Errors Only: Yes, No





• Report: Summary, Detail, or No Report

• Transfer to General Ledger: Yes, No

• Post in General Ledger: Yes, No

• Include User Transaction Identifiers: Yes, No





Creating Manual Journal Entries

Creating Manual Journal Entries

To create journal entries manually:

• Navigate to the Subledger Journal Entries page.

• Click Create Journal Entry

• Enter Balance Type, GL Date, Ledger, Category, Description and and other attributes.

• Select GL accounts and enter debit and credit amounts.

• Click Save as Incomplete if you plan to finalize later, or click Continue.

• Click Finish to validate and finalize the journal entry.

• Run the Transfer Journal Entries to GL concurrent program.





Quiz

Answers: 1

Quiz Specifications

• The correct answer is “You can define your own accounting rules to create journalentries for accounting events”.





Quiz

Answers: 2, 4

Quiz Specifications

• The correct answer is “The two event classes for Cash Management are Bank AccountTransfer and Bank Statement Cashflows”.





Quiz

Answers: 2

Quiz Specifications

• The correct answer is “Oracle Subledger Accounting (SLA) is not a separate product initself, but it is Oracle’s engine catering to the accounting needs of both Oracle andexternal modules”.





Summary




Balances and InterestChapter 12 - Page 1

Balances and Interest

Chapter 12





Objectives





Agenda





Overview

Overview

Bank account balance maintenance and reporting is supported for all internal bank accountsin the system that are defined in Oracle Cash Management.

For each bank account, you can keep track of multiple bank account balance types including:ledger, available, value dated, 1-day float, 2-day float, projected month-to-date average, andyear-to-date average.

Reporting tools are available to view all this centrally stored balance history for trend analysisas well as to compare actual versus projected balances.







You can also verify interest amounts charged or credited by banks based on balance historyand user-defined interest rate schedules.





Tracking Bank Balances by Account

Tracking Bank Balances by Account

(N) Cash Management, Vision Operations (USA) > Bank Account Balances > MaintenanceTracking Bank Balances by Account

To maintain bank balance by account, complete the following steps:

• Enter or select Legal Entity, Bank Name, Currency, Account Name, and/or AccountNumber as search criteria.

• Click Go.

• Select the account you want to update and click the Update icon for either HistoricalBalances or Projected Balances.

• Enter the appropriate date range, if the desired balance dates are not displayed

automatically, and click Go.• Enter or update the account balance using Export.

• Click Apply.

Note: The Notional Cash Pool balance cannot be entered or updated directly as it isautomatically calculated as a sum of balances of the pool participants. If the Notional CashPool balance is incorrect, the balances of pool participating accounts should be updated.Before you can maintain balances of bank accounts that are used in Oracle Treasury, youneed to assign an interest rate schedule to such accounts.





Tracking Bank Balances for Multiple Accounts

Tracking Bank Balances for Multiple Accounts

(N) Cash Management, Vision Operations (USA) > View > Bank Balances > Bank AccountBalances

To maintain bank balances for multiple accounts, complete the following steps:

• Enter or select Legal Entity, Bank Name, Currency, Account Name, and/or AccountNumber as search criteria.

• Click Go.

• Select the accounts you want to update and click Update as Group.

• Enter the desired balance rate.

• Enter or update the account balances.

• Click Apply.





Viewing Actual, Historic, and Projected Balances

Viewing Actual, Historic, and Projected Balances

(N) Cash Management, Vision Operations (USA) > View > Bank Balances > Bank AccountBalances

You can view the actual, Historic, and Projected Balances using the following steps:

• Enter Legal Entity, Bank Name, Currency, Account Name, or Account Number as searchcriteria.

• Click Go.

• Select the account you want to update and click Update icon for either HistoricalBalances or Projected Balances.

• Enter the appropriate date range, if the desired balance dates are not displayed

automatically, and click Go.• Enter or update the account balance.

• Click Apply.





Entering Account Balances Manually or Uploading Automatically

Entering Account Balances Manually or Uploading Automatically

Enter any bank account balance values manually either for one bank account for multipledates or multiple bank accounts for one date.

You can also automatically upload bank statement to reflect in the bank balances using theBank Statement Loader program.

The following balances reported on the bank statement are populated as new balance valuesfor the following balance types:

• Ledger Balance

• Available Balance

• Interest Calculated Balance

• 1 Day Float and 2 Day Float• Average Closing Ledger MTD

• Average Closing Ledger YTD

• Average Closing Available MTD

• Average Closing Available YTD





Creating and Assigning Interest Rate Schedules to BankAccounts

Creating and Assigning Interest Rate Schedules to Bank Accounts

(N) Cash Management, Vision Operations (USA) > Interest Rate Schedules

To create interest rate schedules and assign them to bank accounts, complete the followingsetup steps:

• Click Create Schedule.

• Enter or select Name and Currency.

• Select Basis, Interest Rounding, and Day Count Basis. The default values are Flat,Nearest, and Actual / 365 respectively.

• Click Next.

• Enter the balance ranges (from lowest to highest) to which different rates will apply andclick Next.

• Enter the interest rates that will apply to the balance amount ranges you have defined inthe previous step and click Next.

• Click Assign Accounts and select bank accounts to which this interest rate schedule willapply.

• Click Finish.





Note: If you have bank accounts authorized for use in Oracle Treasury, you have to assign aninterest rate schedule to such accounts before you can maintain their bank account balances.





Reusing Interest Rate Schedules





Calculating Interest on Bank Accounts

Calculating Interest on Bank Accounts

To calculate interest on bank accounts, complete the following setup steps:

• Navigate to the Bank Account Interest page.

• Enter search criteria and click Go.

• Select one or more bank accounts and click Calculate Interest.

• Enter the date range, for which you want the interest to be calculated, and click Go.

• Click the calculated Interest Amount to see the interest rates and balance amounts usedin the calculation.





Creating Reports for Account Balances and Interest Calculations

Creating Reports for Account Balances and Interest Calculations

To view bank account balances online, complete the following steps:

• Navigate to the Report Bank Account Balance page.

• If you do not have any personalized views created, you will be taken to the AdvancedSearch page. In this case, enter the search criteria and click Go. The bank accountbalances will be displayed using the system default layout.

• If you already have at least one view created, you will be taken to the Views page. In thiscase, select a view name from the list and click Go. The bank account balances will bedisplayed using your personal layout.

To create a personalized view layout, complete the following steps:

• Navigate to the Report Bank Account Balance page.• If you do not have any personalized views created, you will be taken to the Advanced

Search page. In this case, click Save Search. If you already have at least one viewcreated, you will be taken to the Views page. In this case, click Personalize and thenCreate View.

• On the Create View page, configure a personalized bank balance view layout.

• In the General Properties region, enter the name, number of rows displayed per page,default view flag and description.





• In the Column Properties region, select the columns you would like to display, arrangethem in the desired order, rename, if needed, and add totals where appropriate. You canalso specify which columns should be used for sorting the bank account balance data.

• In the search query to filter data in your table, enter the search criteria to fetch the bankaccount balance data. Please note that you must select at least either a Name orAccount Number.

• Click Apply.





Creating Reports for Account Balances and Interest Calculations(Continued)

Creating Reports for Account Balances and Interest Calculations (continued)

Bank Account Balances Single Date Report and Bank Account Balances Date Range Reportcan show all the bank account balances converted into a single currency, if you specify areporting currency and select an exchange rate type.





Quiz

Answers: 1

Quiz Specifications

• The correct answer is “Projected month-to-date average is a type of bank accountbalance”.





Quiz

Answers: 4

Quiz Specifications

• The correct answer is “For each bank account, you can keep track of multiple bankaccount balance types including: ledger, available, value dated, 1-day float, 2-day float,projected month-to-date average, and year-to-date average”.





Quiz

Answers: 2

Quiz Specifications

• The correct answer is “In the Create Schedule page, the default value of InterestRounding is Nearest”.





Quiz

Answers: 1

Quiz Specifications

• The correct answer is “The following XML Publisher reports for Account Balances andInterest Calculations are available: Bank Account Balances Single Date Report, BankAccount Balances Date Range Report, and Bank Account Balances Actual versusProjected”.





Summary