USER TRAINING MANUAL

SANG LIN TACKLE SDN BHD

Oracle Cash Management

Author: Sudhakara Reddy Pingala

Creation Date: June 20, 2012

Last Updated Date: Aug 13, 2012

Version : 1.1

Change Record:

Date Author Version Change Reference

20/06/12 Sudhakar Reddy Pingala 1.0 No Previous Document

11/08/12 Srinivas Girnala 1.1 1.0

Reviewers

Name Position

Senthil Kumar Krishnan Project Manager

Distribution

Copy No Name Location

1 YGL Convergence Library2 Sanglin Tackle Penang, Malaysia

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Contents .

Overview of Cash Management..................................................................................4

Benefits..................................................................................4

Banks.......................................................................................................................... 4

a. Bank Creation....................................................................4

b. Bank Branch Creation.........................................................6

C. Bank Account Creation.......................................................8

Creating Bank Reconciliation Statements................................................................14

a. Receipts Reconciliation.....................................................14

B. Payment Reconciliation....................................................20

Cash Forecasting......................................................................................................26

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Introduction:

Standard Operating Procedures is a handy document which helps in using Oracle Payables efficiently as a tool for transaction processing and information retrieval for meaningful analysis of data.

Various process flows have already been discussed in the ‘To-Be Flows’ document, right from inception to conclusion of each process, highlighting the control aspects at each stage of the process. This document has to be read in conjunction with ‘To-Be-Flows’ document where all the processes are discussed in detail.

This document covers:

Navigation paths. Explanation to various functions. Important fields in each form while entering/querying transactions. Various Defaults at each level of transaction entry. Do’s and Don’ts. Reports to be run. Reconciliation Aspects.

Additional Information can be obtained from the ‘User Guide’ provided by Oracle.

To Log on:

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Use Internet Explorer to connect to ERP system using the URL ………………………………………and open the following screen:

Enter the user name and password and click on “Connect” button to log into Oracle Applications and select the appropriate responsibility. To switch your responsibilityClick in the Navigate window or choose Navigator from the Window menu to make the Navigate window active.Choose Switch Responsibility from the File menu.

To change password:

Click in the Navigate window or choose Navigator from the Window menu to make the Navigate window active.Choose Change Password... from the Edit, Preferences menu, to display the Password Update window. Enter your old password in the Old Password field. Enter your new password in the New Password field. Enter your new password again in the Re-enter New Password field. Choose OK.

To sign on as a different user:

Click in the Navigate window or choose Navigator from the Window menu to make the Navigate window active.

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User Name

Password

Choose Log on as a Different User from the File menu, to display the Oracle Applications sign-on window.Enter the username and password for your other sign-on and choose Connect.Navigation to FormsThe forms that you can navigate to are displayed in a navigation list on the left-hand side of the Navigate window. The navigation list is organized much like the hierarchy of a file system, where you can expand items that begin with a plus sign (+) to further sub-levels until you find your form of interest. Sub-levels appear indented below the items from which they are expanded. Items that are expanded are preceded by a minus sign (-). You can expand no further when an item displays neither a plus or minus sign1) Choose one of the following methods to expand an expandable item to its next sub-levelDouble-click on the item.Select the item and choose File - Open.Select the item and choose the Tools - Expand button.2) Choose one of the following methods to collapse an expanded itemDouble-click on the item.Select the item and choose the Collapse button.3) To expand or collapse several items at once, choose one of the following buttons

Expand All Children--expand all the sub-levels of the currently selected item

Expand All--expand all the sub-levels of all expandable items in the navigation list

Collapse All--collapses all currently expanded items in the navigation list4) To open a form from the navigation listSelect your form of interest.Choose Open.

Alternatively you can double click on the Form Name (i.e. Menu) to Open5) To open a form using an LOV windowUse the keyboard shortcut (usually Ctrl L) to open the LOV (List of Values) window. Select the form from the list and choose OK or first reduce the list by entering a partial form title.

Tool Bars:

The toolbar is a collection of iconic buttons, where each button performs a specific action when you choose it. Each toolbar button replicates a commonly used menu item. Depending on the context of the current field or window, a toolbar button can be enabled or disabled. You can display help for an enabled toolbar button by holding your mouse over the button.The toolbar buttons which are commonly used are as follows

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Overview of Cash Management

Oracle Cash Management is an enterprise wide solution for managing liquidity and controlling cash. Cash Management gives you direct access to expected cash flows from your operational systems. You can quickly analyze enterprise wide cash management cash requirements and currency exposures, ensuring liquidity and optimal use of cash resources.

Benefits Forecast cash flows in any currency and in multiple time periods Streamline

the reconciliation process Monitor for exceptions and fraud Forecast based on historical or future transactions Manage the cash cycle efficiently and with control

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Banks:

a. Bank Creation: Steps: 1. N: Setup-> Banks -> Banks

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2. Click on Create button

3. Enter the Country as Malaysia and Bank Name then Click on Save and Next Button

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4. Click on Create button for bank address if required or click on Save and Next button.

5. Click on Create contract button for bank contract concern person if required or click on Finish button.

b. Bank Branch Creation

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1. Click on Create Branch icon

2. Enter Country name as Malaysia and Bank Name then Click on Continue button.

3. Enter the Bank Branch Name and required data then Click on Save and Next button.

4. Click on Create button for bank branch address information or click on Save and Next button.

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5. Click on Create Contact button for bank branch Contact information if required or click on Finish button.

C. Bank Account Creation

1. Click on Create Account icon.

2. Enter the Required data and Click on Continue button.

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3. Select the Bank Account Owner i.e. Legal entity name as ‘Sanglin_LE',Enable Account use Payables and ReceivablesClick on Next button.

4. Enter the Account name, Account Number and Currency then Click on Save and Next button.

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Enter the required accounts and fill the followings.

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5. Enter the auto reconciliation tolerances for the payments ,Receipts and Cash Flow Interfaces. Click on Save and next button

6. Click on Add Organization Access button.

7. Enable Account Use as Payables and ReceivablesAnd Select the organization as Sanglin Tackle unit Click on Continue button.

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8. Enter the required data and click on Apply button.

9. Click on save and next button.

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10. Click on Finish button.

11. Select May Bank Account and Click on Manage Payment Documents

12. Then click on Create button.

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13. Enter the required data and Apply.

Creating Bank Reconciliation Statements:Cash Management lets you create new bank statement lines when reconciling available transactions. This is useful if you want to reconcile without entering statement line information first.

Reconcile Bank Statements: Once you have entered detailed bank statementinformation into Cash Management, you must reconcile that information with yoursystem transactions. Cash Management provides two methods of reconciliation:

• Automatic-Bank statement details are automatically matched and reconciledwith system transactions. This method is ideally suited for bank accounts thathave a high volume of transactions.

• Manual-This method requires you to manually match bank statement detailswith system transactions. The method is ideally suited to reconciling bankaccounts that have a small volume of monthly transactions. You can also usethe manual reconciliation method to reconcile any bank statement details thatcould not be reconciled automatically.

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Miscellaneous TransactionsDuring the reconciliation process, you can create miscellaneous transactions forbank-originated entries, such as bank charges and interest. You can also manually enterPayables payments or Receivables receipts. The automatic reconciliation process can beset up to create miscellaneous transactions automatically.

ClearingWhen you reconcile a transaction, the transaction is first matched to bank state-mentdetails and then cleared (if uncleared). Alternatively, you can manually clear Payablespayments, Receivables receipts, miscellaneous transactions, open interface transac-tions,and Cash Management cashflows (except for those created from bank statement lines)in Cash Management prior to reconciliation to maintain more up-to-date cash ac-countbalances. You can also use Automatic Clearing to clear receipts in Oracle Receiv-ables.When you clear a transaction, Cash Management assigns a cleared date, clearedamount, and status to the transaction. Accounting for the cleared transaction varies bythe source. If the transaction is a payment, Payables records the accounting infor-mation

but you create the accounting entries in Payables. If the transaction is a receipt or amiscellaneous transaction, Receivables automatically generates the accounting en-tries.If the transaction is an open interface transaction, you must customize the CE_999_PKGpackage to implement reconciliation accounting. You cannot clear Payroll payments,General Ledger journal entries, or Treasury settlements.

Review and Summarize Results

Once you have completed the reconciliation process, we recommend that you re-viewyour reconciliation results. You can review the reports that are printed automaticallyfrom the AutoReconciliation program. You can also use the following reports:• Bank Statement Detail Report• Bank Statement Summary Report• Bank Statements by Number Report

a. Receipts Reconciliation:

Matching Criteria for Receivables Transactions

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b. The Cash Management Auto Reconciliation program fully matches Receiv-ables

c. transactions against bank statement lines if the transactions meet the follow-ing criteria:

d. • For remittance batches (such as Direct Debit batches), the Remittance Batch Deposit

e. Number or Receipt Batch Name matches the statement line Transaction Number

f. and the transaction amount is within the reconciliation tolerance.g. • For detail remittance transactions, NSF (Non-Sufficient Funds), and Rejectedh. transactions, the matching sequence searches in the following order:i. • 1. receipt numberj. • 2. invoice number and customer bank account numberk. • 3. invoice number and customer name

l. Note: Also, the transaction amount is within the reconciliation

m. tolerance.n. If the bank statement does not provide a receipt number for ao. receipt, then matching to the invoice number and customerp. bank account number is particularly useful.q. • For NSF (Non-Sufficient Funds) or Rejected transactions the receipt must

first ber. reversed in Oracle Receivables.

N: - Bank Statements-> Bank Statements and Reconciliation

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To create a new bank statement line from reconciled transactions: 1. Navigate to the Find Bank Statements window.

2. Enter the query criteria for the statement you want to reconcile, or leave the criteria blank to query all existing statements.

3. Choose Find to see the Reconcile Bank Statements window containing the statements that meet your query criteria.

4. Select the statement you want to reconcile, and choose Review. Optionally, choose New to enter a new bank statement.

5. If you are entering a new bank statement, enter the bank statement header information. If you select an existing bank statement, Cash Management displays the corresponding bank information.

6. Choose Available to search for detail or batch transactions that are available for reconciliation.

7. Enter your search criteria in the Find Transactions window, or leave the criteria blank to search for all available transactions.

8. Choose Find.

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9. Select the detail or batch transactions that apply to the bank statement line you want to create. 10. Choose reconcile. Cash Management creates a new bank statement line with an Amount and Type that match the reconciled transaction(s) for that line.

Click on Find button.

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Click on Lines button

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Bank Statement Lines

A bank statement line can refer to one or more payments, receipts, cashflows,miscellaneous transactions, open interface transactions, or journal entry lines. Each linehas a line number, transaction type, date cleared (bank transaction date), and amount.Optional line information includes the bank transaction code, number, bank transac-tionidentifier (such as the payment or deposit number), currency information (currencyOverview 1-5code, original amount in transaction currency, exchange rate), value date, agent(customer or supplier), agent bank account, a comment, and a descriptive flexfield foruser-defined additional information.A bank statement line's status can be one of the following:

• Reconciled: Some transactions have been matched against this line. The state-mentline may not be fully reconciled.

• Unreconciled: No transactions have been matched.

• Error: This status is a warning that the linecannot be reconciled because of a bankerror in the statement that cannot be resolved. You must manually mark thestatement line as Error. The transaction remains unreconciled because there is nocorresponding transaction to which the line can be reconciled.

• External: The line does not correspond to any transaction in General Ledger,Payables, Receivables, Payroll, Cash Management, or the Reconciliation OpenInterface, but corresponds to a transaction in another system. You then manuallymark the statement line as External. Cash Management treats it as reconciled.

Bank Statement Error ReconciliationYou can efficiently manage bank errors. You can automatically or manually recon-cilecorrecting statement lines against error statement lines, thereby providing an audit trailyou can use to verify correction of bank errors.For example, if your bank erroneously records a $50 payment as $500, your bankstatement may show three statement lines for $500, <$500>, and $50. You can reconcilethe <$500> correction against the $500 error statement line, and the $50 state-ment lineagainst the original payment.

The above screen shows the reconciled transactions.Click on Available button.

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Enable AR Receipts and click on find button. it will gives the following screen.

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This Screen Contains three receipts ready for reconciliation. choose the first one. click on any transaction and click on Reconcile button.

the first receipt is reconciled.

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B. Payment Reconciliation

N: - Bank Statements-> Bank Statements and Reconciliation

To create a new bank statement line from reconciled transactions:

1. Navigate to the Find Bank Statements window.

2. Enter the query criteria for the statement you want to reconcile, or leave the criteria blank to query all existing statements.

3. Choose Find to see the Reconcile Bank Statements window containing the statements that meet your query criteria.

4. Select the statement you want to reconcile, and choose Review. Optionally, choose New to enter a new bank statement.

5. If you are entering a new bank statement, enter the bank statement header information. If you select an existing bank statement, Cash Management displays the corresponding bank information.

6. Choose Available to search for detail or batch transactions that are available for reconciliation.

7. Enter your search criteria in the Find Transactions window, or leave the criteria blank to search for all available transactions.

8. Choose Find.

9. Select the detail or batch transactions that apply to the bank statement line you want to create.

10. Choose reconcile. Cash Management creates a new bank statement line with an Amount and Type that match the reconciled transaction(s) for that line.

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Click on find button.

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click on available transactions.

Choose AP payments and click on find button.

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Check the status is negotiable and click on the Reconcile Button.after that close the window.

This screen show the reconciled amount.click on Reconciled Button..

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the above Payment stating that Reconcile unaccounted.. go to the payment work bench, do the final accounting from actions tab.

Cash Forecasting:

Cash forecasting is a planning tool that helps you anticipate the flow of cash in and outof your business, allowing you to project your cash needs and evaluate your com-pany'sliquidity position.

Cash inflow information is immediately accessible to the cash forecast process in OracleCash Management from Oracle Receivables, Oracle Order Management, Oracle Sales,Oracle General Ledger, and Oracle Treasury. Cash outflow information comes fromOracle Payables, Oracle Purchasing, Oracle Payroll, Oracle General Ledger, and OracleTreasury. In addition, cash flow information from Oracle Projects and other OracleApplications that store Projects-related information is also immediately accessible to thecash forecast process, enabling you to generate a forecast for a project. Using theExternal Cashflow Open Interface, you can also include cash flows from externalsystems.

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click on this , it will get the following window.

Go to forecast Template Tab, Click on Create Template..

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Enter the forecast name , Description and forecast type. Click on Next.

Add Rows as Supplier invoices,

Give the required data , click on apply.

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Add Supplier Payments as row, click on Go button.

Similarly add Customer Invoices and Customer receipts as row number 3 and 4.

Click on next button..

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Enter the columns numbers and click on Finish.

Enter the forecast template name and click on go.Next Run Forecast button.

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Fill the required information, Click on Submit button..

Click on View Forecasts, it will display the Cash Forecast.

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Cash Forecast displays the cash Inflows and Outflows and Net cash flows.

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