R12.x Oracle Cash Management Fundamental PDF

R12.
x Oracle Cash
Management Fundamentals
Student Guide
D60083GC10
Edition 1.0
March 2010
D66101
Copyright © 2010, Oracle. All rights reserved.
Disclaimer
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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

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
Copyright © Oracle 2010. All rights reserved.
R12.x Oracle Cash Management Fundamentals Table of Contents

i
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

ii
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

iii
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

iv
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

v
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 concepts
and skills introduced.

vii
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

viii
Typographic Conventions
Typographic Conventions in Text
Convention Element Example
Bold italic Glossary term (if The algorithm inserts the new key.
there is a glossary)
Caps and Buttons, Click the Executable button.
lowercase check boxes, Select the Can’t Delete Card check box.
triggers, Assign a When-Validate-Item trigger to the ORD block.
windows Open the Master Schedule window.
Courier new, Code output, Code output: debug.set (‘I”, 300);
case sensitive directory names, Directory: bin (DOS), $FMHOME (UNIX)
(default is filenames, Filename: Locate the init.ora file.
lowercase) passwords, Password: User tiger as your password.
pathnames, Pathname: Open c:\my_docs\projects
URLs, URL: Go to http://www.oracle.com
user input,
User input: Enter 300
usernames
Username: Log on as scott
Initial cap Graphics labels Customer address (but Oracle Payables)
(unless the term is a
proper noun)
Italic Emphasized words Do not save changes to the database.
and phrases, For further information, see Oracle7 Server SQL Language
titles of books and Reference Manual.
courses, Enter [email protected], where user_id is the
variables name of the user.
Quotation Interface elements Select “Include a reusable module component” and click Finish.
marks with long names
that have only This subject is covered in Unit II, Lesson 3, “Working with
initial caps; Objects.”
lesson and chapter
titles in cross-
references
Uppercase SQL column Use the SELECT command to view information stored in the
names, commands, LAST_NAME
functions, schemas, column of the EMP table.
table names
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]

ix
Typographic Conventions in Code
Convention Element Example
Caps and Oracle Forms When-Validate-Item
lowercase triggers
Lowercase Column names, SELECT last_name
table names FROM s_emp;
Passwords DROP USER scott

IDENTIFIED BY tiger;
PL/SQL objects OG_ACTIVATE_LAYER
(OG_GET_LAYER (‘prod_pie_layer’))
Lowercase Syntax variables CREATE ROLE role

italic
Uppercase SQL commands and SELECT userid
functions FROM 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

x
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.

xi

xii
Oracle Cash Management
Overview
Chapter 1
Copyright © Oracle, 2010. All rights reserved.
Oracle Cash Management Overview

Chapter 1 - Page 1

Chapter 1 - Page 2

Chapter 1 - Page 3
Objectives

Chapter 1 - Page 4
Agenda

Chapter 1 - Page 5
Overview
Overview
Oracle Cash Management is an enterprise cash management solution that helps you manage
your liquidity and cash position.
• Manage and control your cash cycle: track closing ledger and available balances as well
as 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

Chapter 1 - Page 6
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 record
bank 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 Cash
Management for reconciliation. Journal entries are created for bank account transfers
and bank statement cashflows using Subledger Accounting and transferred to General
Ledger.
• Payroll
• Treasury
• Payments covering the SEPA Credit Transfer and Cash Management Cashflows for
clearing and reconciliation, which are generated from Bank Account Transfers and Bank
Statement Cashflow programs, are also available.
• Open Interfaces

Chapter 1 - Page 7
Overview of Bank Account Model

In previous releases, Payables owned banks, bank branches, and bank accounts. Such bank
accounts could also be used by Receivables. Payroll, and Treasury, but they had their own
bank account models.
In the new model shown on your screen, Banks and Bank Branches are created as Trading
Community Architecture parties. The bank accounts are associated with Bank Branches but
reside within the Cash Management application. During the bank account creation, you are
able to define in which applications this bank account can be used.

Chapter 1 - Page 8
Setting Up for Reconciliation
Setting Up for Reconciliation

Before you set up Cash Management, you should set up Oracle Application responsibilities
and 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 for
bank 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 Cash
Management with them.

Chapter 1 - Page 9
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 and
manually enter payments and receipts.
You can manually or automatically clear payments, receipts, open interface and
miscellaneous transactions before reconciliation to maintain current cash account balances.
After reconciliation, review the Bank Statement Detail, Bank Statement Summary, and Bank
Statement by Number Reports.
You can post the accounting entries to your general ledger. You can reconcile your general
ledger cash account balance to your bank account balance in Cash Management by printing
the General Ledger Reconciliation Report.

Chapter 1 - Page 10
Reconciliation: Bank Statement Information
Reconciliation: Bank Statements

Managing Bank Statement Information
Oracle Cash Management maintains bank statement data that you want to reconcile. You use
the Cash Management Bank Statement Open Interface to load bank statement data or enter
and update them manually.
Each bank statement consists of one bank statement header and multiple bank statement
lines. Each bank statement line can refer to one or more payments, receipts, open interface
and miscellaneous transactions, or journal entry. A bank statement line’s status can be
Reconciled, Unreconciled, Error, and External. The Batch Booking concept is introduced to
handle multiple statements, a statement line can be matched to a Batch, a Group, or a
Transaction.
You can manage bank errors by manually or automatically reconciling them. You can
reconcile by matching a bank statement line with a Payables or Payroll payment, Receivables
receipt, miscellaneous transaction, open interface transaction, Treasury settlement, or GL
journal entry. You can also clear the matched transactions. Bank statement lines are coded to
identify the transaction type represented by the line. You need to map each code used.

Chapter 1 - Page 11
Reconciliation: Integration
Reconciliation: Integration
Oracle Cash Management shares functionality with Receivables, Payables, Payroll,
Payments, Treasury, General Ledger, and other external systems.

Chapter 1 - Page 12
Reconciliation: Oracle Receivables and Payables
Reconciliation: Oracle Receivables and Payables

You can reconcile payments you created in Payables and receipts you entered in Receivables
against your bank statements.
When you reconcile Payables payments in Cash Management, the payments are first
matched to bank statement lines and then cleared. You can also manually clear the payments
prior to reconciliation. After clearing or reconciling your payments, you can create accounting
entries for the Cash, Cash Clearing, Bank Charges, Bank Errors, Realized Gain and Realized
Loss accounts that you specified in the Payables Bank Accounts window and the Payment
Documents window. You then transfer the accounting entries to your general ledger.
When you reconcile receipts with Cash Management, accounting entries are automatically
created in the Cash, Remittance, Short-term Debts, and Interest Earned accounts, as
applicable to the reconciliation transaction. Cash Management uses the accounts you defined
in the Banks window and the Receipt Classes window (Payment Methods region) in
Receivables. You post the accounting entries resulting from Cash Management receipt
reconciliation to General Ledger from Receivables.

Chapter 1 - Page 13
Reconciliation: Oracle Payroll, Oracle Treasury, and Oracle
General Ledger
Reconciliation: Oracle Payroll, Oracle Treasury, and Oracle General Ledger

You can reconcile manual and EFT payments from Payroll and journal entries from General
Ledger against your bank statements.
• Using the Bank Account Security Access profile option, you can grant access to the
bank account information at three levels: All, Internal, and Payroll.
• You can reconcile third party payments such as child support payments using the same
matching criteria as payroll payments.
• Voided payments on the bank statement lines will be marked with an error message that
identifies the payments as voided.
• Payment discrepancies are not automatically reconciled, but marked with an error
message showing that the transaction amount is different from the payment amount.
You can also reconcile the following from Treasury: Settlements from Treasury as open
interface transactions, shared bank accounts, and bank account balances..
• You can load, import, and reconcile bank statements from bank accounts shared by
Treasury and Cash Management.

Chapter 1 - Page 14
• When you import bank statements from a shared bank account, Cash Management uses
the balance provided by your bank to update the bank account balances in Treasury.

Chapter 1 - Page 15
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 between
two parties located in the SEPA (Single European Payment Area) zone. This enables the
Payment originator or payer to transfer money through their bank to the account of the
beneficiary or supplier.
The SEPA Credit Transfer scheme is defined by the European Payment Council (EPC) as a
set of rules, practices, and standards to support the creation and implementation of a core and
basic credit transfer process whether for single, bulk or repetitive payments.
The SCT is governed by the EPC Rulebook and Implementation Guidelines Version 2.2 that
were approved by the EPC in December 2006. The SEPA Credit Transfer supports the
ISO20022 message with the SEPA implementation: customer credit transfer initiation. This
XML message contains all the relevant information related to the payment instruction and is
sent by the Payment originator to the bank.

Chapter 1 - Page 16
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 that
you can protect your cash needs and evaluate your liquidity position.

Chapter 1 - Page 17
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 can
include cash flows from external systems using the External Cashflow Open Interface.

Chapter 1 - Page 18
Cash Positioning
Cash Positioning
Cash Positioning is a planning tool for viewing your daily cash position by currency or bank
account to protect your cash needs and evaluate your liquidity position. The daily cash
positions are based on actual cash flows from various Oracle applications. You can generate
a daily cash position from a single or multiple currencies, bank accounts, and legal entities.

Chapter 1 - Page 19
Cash Pools
Cash Pools
Cash pooling is a Cash Management technique for optimizing bank account balances at one
or several banks. It is usually performed daily, by transaction, or by total net end-of-day
balances.
If your cash position includes cash pools, generate a cash leveling proposal. The cash
leveling proposal is calculated online based on the sub account target balances and transfer
amount calculation rules.
For notional cash pools and physical cash pools with bank initiated sweeps, use the cash
leveling proposal to approximate the projected closing balance of the concentration account,
so that the investment or funding decisions could be made from the concentration account
based on the projection.
For physical cash pools that do not have bank initiated sweeps, generate Intercompany
Funding Transactions and/or Inter-Account transfers from the cash leveling proposal. These
transfers can then be included in the payment file and sent to the bank through Oracle
Treasury.

Chapter 1 - Page 20
Oracle Cash Management Reports and Programs

Chapter 1 - Page 21
Quiz
Answers: 1
Quiz Specifications
• The correct answer is “You can use Oracle Cash Management to manage your bank
and bank account information”.

Chapter 1 - Page 22
Quiz
Answers: 4
Quiz Specifications
• The correct answer is “In Batch Booking, a statement line can be matched to a Batch, a
Group, or a Transaction”.

Chapter 1 - Page 23
Quiz
Answers: 2
Quiz Specifications
• The correct answer is “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 between two parties located in the SEPA (Single European
Payment Area) zone”.

Chapter 1 - Page 24
Quiz
Answers: 2, 4
Quiz Specifications
• The correct answer is “Cash inflow data is accessible for forecasting from Oracle
Receivables and Oracle Projects”.

Chapter 1 - Page 25
Summary

Chapter 1 - Page 26
Cash Management Security
Chapter 2

Chapter 2 - Page 1

Chapter 2 - Page 2

Chapter 2 - Page 3
Objectives

Chapter 2 - Page 4
Agenda

Chapter 2 - Page 5
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 among
them 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’ the
account 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

Chapter 2 - Page 6
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 can
access. You must create a security profile in Oracle HRMS that lists the operating units
you want to grant access to. Then you assign that security profile to the MO: Security
Profile option.
• If you set this profile option at the responsibility level, then all users using that
responsibility will have access to only the operating units listed in the security profile. If
you set this profile option at the user level, then the user will have access to only the
operating 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 the
default 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 default
one instead of forcing users to constantly have to choose one. Use this profile option to
set the operating unit context for your users. With User Preferences, you can also
specify a default operating unit at the user level.

Chapter 2 - Page 7
• MO: Operating Unit profile option provides backwards compatibility and supports
products that do not use MOAC. If you specify a security profile for the MO: Security
Profile, then those products that use MOAC will ignore the MO: Operating Unit profile
option.
For more information on multiple organization setup, see: Oracle Applications Multiple
Organizations Implementation Guide.

Chapter 2 - Page 8
Cash Management Security Model
Cash Management Security Model

In Cash Management, you can control which users have access to your bank accounts and
cash management activities by creating security rules. Security rules prevent unauthorized
users from creating or updating bank accounts, viewing bank statements, reconciling bank
statements, and transferring funds. The three different types of security rules are:
• Bank Account Maintenance Security rules determine who can create and update bank
accounts based on the legal entities the user can access.
• Bank Account Access Security rules use a combination of information from Bank
Account Access Setup and Cash Management Security Profiles to determine who can
access 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 bank
account transfers based on the legal entities that the user can access.

Chapter 2 - Page 9
Bank Account Maintenance Security
Bank Account Maintenance Security

Bank Account Maintenance Security rules grant the privilege to create and update bank
accounts. By identifying the legal entities available for a role (responsibility), granting the role
access to maintain bank accounts, and assigning roles to users, you can control which users
can perform bank account maintenance.
For example, Pat Stock is a cash manager in your company and can access the Cash
Manager responsibility. The Cash Manager responsibility has access to the LE1, LE2, and
LE3 legal entities. Access to maintain bank accounts has been granted to this responsibility
only for LE2. Therefore Pat can create a bank account for only LE2. If you want Pat Stock to
be able to create bank accounts for the LE1 and LE3 legal entities, then you must grant
access 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 (legal
entity) is registered for the Cash Manager responsibility. Pat can update banks accounts for
LE1, LE2, and LE3.
To set up maintenance security, use the CE UMX Security Wizard available under the User
Management (UMX) responsibility. The wizard helps you quickly define the legal entities
available for a role. To launch the wizard, log in as System Administrator, then in the User
Management responsibility, go to Roles & Role Inheritance.

Chapter 2 - Page 10
Note: If a user is assigned to multiple roles and those roles have bank account maintenance
grants to multiple legal entities, then the user will view all legal entities in Cash Management
regardless of which responsibility he or she uses to access the application.

Chapter 2 - Page 11
Bank Account Access Security
Bank Account Access Security

Bank account access security rules are created by combining bank account access
information 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 have
access to the organization that uses the bank account in order to be able to access that bank
account.
In this example, user Pat Stock has access to Bank Account 555 because LE 1 is common to
both 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. Pat
can also reconcile Payables transaction lines for the bank statement because OU 1 is
identified as an organization that uses this bank account for Payables activities and because
Pat has MOAC security rights to OU 1. She cannot however reconcile any bank statement
lines for Payroll, Receivables, or Treasury.

Chapter 2 - Page 12
Cash Management Security Profiles and Reconciling Bank
Statements
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 level
security 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 the
transaction 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

Chapter 2 - Page 13
Cash Management Security Components
Cash Management Security Components

Set up security for access to Cash Management activities by using components from different
applications. The specific steps required to secure access to your bank accounts depend on
the type of access you want to secure, the applications that you use for your business, and
your organization structure.
• Use the CE UMX Security Wizard to grant a role (responsibility) the ability to perform
bank account activities in the following areas:
- Use: View bank statements, reconcile cashflow transactions, work with cash
forecasting, 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 up
security profiles in the following applications as needed:
- MOAC: To define the list of operating units a user can access for Payables and
Receivables and be able to reconcile Payables and Receivables bank statement
lines.

Chapter 2 - Page 14
- Cash Management: To define the list of organizations a user can access to
reconcile cashflow transactions. This security profile also allows users to access
bank accounts for cash forecasting, cash positioning, and cash pools if no other
security profiles are set up.
- Treasury: To define the legal entity that the Treasury user can access and be able
to reconcile Treasury bank statement lines.
- Payroll: To define the business groups a user can access and be able to reconcile
payroll transactions.

Chapter 2 - Page 15
Setting Up Security
Setting Up Security
To set up security to control access to your bank accounts, you need to complete the following
steps. These steps are a general guideline to the components that affect bank account
security but may be performed at various stages during implementation of your system. Once
the setup is in place, it will be referenced to verify access every time a user attempts to create
a bank account, reconcile a bank statement or perform any other actions in Cash
Management.
• Define business groups.
• Create users, assign responsibilities, and set HR profile options including HR: Business
Group.
• 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 security
profile. The security profile is then assigned to the responsibility or user which will give
the 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).

Chapter 2 - Page 16
• Set up UMX security: Use the CE UMX Security Wizard and create security grants for
legal 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

Chapter 2 - Page 17
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, you
identify which legal entities a role (responsibility) can access. Then a Cash Management user
with 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 associated
with 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 for
cashflow 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. For
Vision Corporation legal entity, users can only use the bank accounts in Cash Management
functions.

Chapter 2 - Page 18
Quiz
Answers: 1
Quiz Specifications
• The correct answer is “Multiple Organization Access Control (MOAC) lets you define
multiple organizations and the relationships among them in a single installation of Oracle
Applications”.

Chapter 2 - Page 19
Quiz
Answers: 1, 2, 4
Quiz Specifications
• The correct answer is “The three different types of security used by Cash Management
are Bank Account Maintenance, Bank Account Access, and Bank Account Transfer ”.

Chapter 2 - Page 20
Quiz
Answers: 2
Quiz Specifications
• The correct answer is “Users can transfer funds if their assigned Legal Entity has been
given Bank Account Transfer right”.

Chapter 2 - Page 21
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”.

Chapter 2 - Page 22
Summary

Chapter 2 - Page 23

Chapter 2 - Page 24
Setting Up Oracle Cash
Management
Chapter 3
Setting Up Oracle Cash Management

Chapter 3 - Page 1

Chapter 3 - Page 2

Chapter 3 - Page 3
Objectives

Chapter 3 - Page 4
Agenda

Chapter 3 - Page 5
Overview
Overview
Before setting up Cash Management, you should set up Oracle Application responsibilities
and users for the implementation. You must also set up underlying Oracle Applications
Technology.
Through Oracle Applications Multiple Organization Support, you can use multiple sets of
books 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 can
segregate transactions by operating unit while sharing certain data:
• Currencies
• Exchange Rates
• Organizations
• Ledgers
• Bank Accounts

Chapter 3 - Page 6
Setting Up Oracle General Ledger
Setting Up Oracle General Ledger

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

Chapter 3 - Page 7
Setting Up Oracle Payables
Setting Up Oracle Payables

Complete the setup steps to enable Oracle Cash Management to integrate with Oracle
Payables.
• Primary ledger: Select a primary ledger for each responsibility in the Choose Ledger
window in Oracle Payables.
• Account for Payment options:
- When Payment is Issued – If you use a cash clearing account, select this option to
create accounting entries for bank charges, errors, and gains/losses. If you do not
enable this option, you can still reconcile payments in Cash Management, but you
cannot 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 currency
payment amount.
- When Payment is Issued
- When Payment Clears – Set automatically when you select Account for Payment
When Payment Clears option.
• Payables accounting periods: see Controlling the Status of Payables Periods.

Chapter 3 - Page 8
• Use the Payables Setup section in the Oracle Payables Implementation Guide for help in
completing the setup steps.

Chapter 3 - Page 9
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 tax
code, if required.
• Set the AR: Allow Tax Code Override profile option to control whether you can override
the default value for the Tax Code field.
• Perform any additional setup required to handle miscellaneous receipts, including
defining 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.

Chapter 3 - Page 10
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 Payroll
responsibility. Do this only if the assignment has not already been made in the initial
setup.
• In Cash Management, be sure to select Payroll Use for correct business groups when
defining 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 reconciliation
feature from your payroll bank accounts in Cash Management. The ledger you specify
must be the same ledger you assign to the GL Ledger Name profile option. In Cash
Management, set up the Payments and Stopped Payments bank transaction codes for
the bank account.
• Use the Setting Up Oracle Payroll for Oracle Cash Management Integration section in
the Oracle Cash Management User Guide for help in completing the setup steps.

Chapter 3 - Page 11
Setting Up Oracle Treasury
Setting Up Oracle Treasury

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.

Chapter 3 - Page 12
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 meet
your business needs. System parameters determine, for example, the default options for
manual 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. This
value defaults from the GL Ledger Name profile option. Cash Management supports
multiple 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 remain
available for reconciliation. Otherwise, only uncleared transactions will appear for
reconciliation.
• Allow Adding Lines to Imported Statements

Chapter 3 - Page 13
• Show Void Payments: You must check this check box if you want voided payments
available for reconciliation.
Signing Authority Approval:
• Workflow Enabled
• Manually Controlled
Cash Management Transactions:
• Accounting: Exchange Rate Type, Bank Statement Cashflow Rate Date, Bank Transfer
Rate Date
• Bank Account Transfers: Authorization
Note: Set up bank reconciliation controls such as matching order and float status for each
bank account when you create or update a bank account.

Chapter 3 - Page 14
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 AutoReconciliation
feature, you must define, for each bank account, the transaction codes that each bank uses to
identify different types of transactions on its statements.
Because each bank might use a different set of transaction codes, you must define a bank
transaction code for each code that you expect to receive from each bank that you use.
Transaction types include: Payment, Receipt, Miscellaneous Payment, Miscellaneous
Receipt, Stopped, Rejected, NSF, Sweep In, and Sweep Out.

Chapter 3 - Page 15
Setting Up Oracle Cash Management: Bank Statement Open
Interface
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 bank
statement information into Oracle Cash Management.
If your bank provides bank statements in a flat file, you can use the bank statement open
interface to load this information into Oracle Cash Management using the Bank Statement
Loader 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

Chapter 3 - Page 16
Setting Up Oracle Cash Management: Reconciliation Open
Interface
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 transactions
After setup, you can run AutoReconciliation or clear or reconcile open interface transactions
manually. You do not run the Reconciliation Open Interface as a separate program. Cash
Management 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 after
reconciliation. However, you cannot clear or unclear Treasury settlements. Refer to Using

Chapter 3 - Page 17
Reconciliation Open Interface to Reconcile Treasury Settlements in the Oracle Cash
Management User Guide for more information.

Chapter 3 - Page 18
Setting Up Oracle Cash Management: External Cashflow Open
Interface
Setting Up Oracle Cash Management: External Cashflow Open Interface

Through two source transaction types, Open Interface Inflow and Open Interface Outflow, you
can include external application transaction sources for cash forecasting and cash positioning.
With two separate source transaction types for external source transactions, you can easily
indicate 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 to
include 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 distributed
database, you need to specify a database link.
After the setup, you can generate a cash forecast and cash position, and automatically
retrieve data available from the defined external sources. You do not run the External
Cashflow Open Interface as a separate program.
To use the External Cashflow Open Interface effectively, refer to Preparing to Use the
External Cashflow Open Interface in the Oracle Cash Management User Guide.

Chapter 3 - Page 19
Setting Up Oracle Cash Management: Sequential Document
Numbering
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 can
assign sequential document numbers to your bank statements. Use the System Administrator
responsibility when setting up sequential numbering.

Chapter 3 - Page 20
Quiz
Answers: 2
Quiz Specifications
• The correct answer is “Set the AR: Allow Tax Code Override profile option to Yes to
override the default value for the Tax Code field”.

Chapter 3 - Page 21
Quiz
Answers: 3
Quiz Specifications
• The correct answer is “Assign the business group to the HR security profile is part of the
setup for Oracle Payroll”.

Chapter 3 - Page 22
Quiz
Answers: 2
Quiz Specifications
• The correct answer is “You can also use a custom loader program to load the bank
statement information into Oracle Cash Management”.

Chapter 3 - Page 23
Quiz
Answers: 4
Quiz Specifications
• The correct answer is “Show Void Payments”.

Chapter 3 - Page 24
Summary

Chapter 3 - Page 25

Chapter 3 - Page 26
Creating Bank Accounts
Chapter 4

Chapter 4 - Page 1

Chapter 4 - Page 2

Chapter 4 - Page 3
Objectives

Chapter 4 - Page 4
Agenda

Chapter 4 - Page 5

The Bank Account Model feature allows you to define and keep track of all bank accounts in
the E-Business Suite in one place and explicitly grant account access to multiple operating
units/functions and users.
Bank accounts for internal use in Cash Management, Payables, Receivables, Treasury, and
Payroll are consolidated.

Chapter 4 - Page 6
Overview of Bank Account Model (Continued)
Overview of Bank Account Model (continued)

In previous releases, Payables owned banks, bank branches, and bank accounts. Such bank
accounts could also be used by Receivables. Payroll, and Treasury, but they had their own
bank account models.
In the new model shown on your screen, Banks and Bank Branches are created as Trading
Community Architecture parties. The bank accounts are associated with Bank Branches but
reside within the Cash Management application. During the bank account creation, you are
able to define in which applications this bank account can be used.

Chapter 4 - Page 7
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 for

Chapter 4 - Page 8
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 new
bank, you can either create a new bank or add bank details to an existing party defined
in your Trading Community.
• Enter a country name or select a country from the list of values. This is a mandatory
field.
• 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, Inactive
Date, and Context Value.
• Select Finish to save your bank or select Save and Next to enter Bank Address
information
Bank Address Information

Chapter 4 - Page 9
• 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.

Chapter 4 - Page 10
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 from
the list of values and select Continue.
• Select one of the two radio buttons in the Branch Options page to indicate if you are
creating a new branch or adding branch details to an existing party defined in your
Trading 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, Inactive
Date, and Context Value.
• Select Finish to save your branch or select Save and Next to enter Branch Address
and/or Branch Contact information. This is similar to creation of the Bank Address and
Bank Contact information.

Chapter 4 - Page 11
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 the
bank account setup, you have to link the bank branch you have just created to the
counterparty in Treasury.
You can create a new or update an existing counterparty. In order to establish the link, use the
following 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

Chapter 4 - Page 12
Creating Bank Accounts: Selecting Branch, Legal Entities, and
Functions
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 the
Cash Management, Vision Operations (USA) responsibility.
• Select Create.
• Enter the Country, Bank Name, and Branch Name for which you are creating this
account 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 not
linked 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 Cash
Management User Guide for help in completing the setup steps.

Chapter 4 - Page 13
Creating Bank Accounts: Adding Account Attributes
Creating Bank Accounts: Adding Account Attributes

> (T) Account Information
Perform these setup steps:
• Enter or select the Account Name, Account Number, and Currency. These are
mandatory fields.
• Optionally, enter or select the Alternate Account Name, Short Account Name, Check
Digit, Multiple Currencies Allowed, International Bank Account Number (IBAN), Account
Type, 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.

Chapter 4 - Page 14
Creating Bank Accounts: Adding Account Controls
Creating Bank Accounts: Adding Account Controls

> (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 Charges
Account Number, Bank Errors Account Number, Foreign Exchange Charges
Account 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 Display
Order.
• Payables Controls Region (Optional)

Chapter 4 - Page 15
- Enable the Multiple Currency Payments, Allow Zero Payments, and Pooled
Account 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, Receivables
Matching 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 Interface
Matching 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

Chapter 4 - Page 16
Creating Bank Accounts: Adding Account Access
Creating Bank Accounts: Adding Account Access

> (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 Contact
information.
Use the Bank and Account Administration: Define Bank Accounts section the Oracle Cash

Chapter 4 - Page 17
Creating Bank Accounts: Adding Account Contacts
Creating Bank Accounts: Adding Account Contacts

> (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.

Chapter 4 - Page 18
Adding Bank Account to Organization Payment Method in Oracle
Payroll
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, perform
these setup steps:
• In the Define Organization window, define an organization and classify it as all of the
following: business group, legal entity, HR organization, or operating unit.
• Assign the business group to the HR: Security profile option for your Payroll
responsibility, 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 the
same Organization as a Legal Entity and Operating Unit also.)
• In Cash Management, ensure that bank accounts you like to use for Payroll
reconciliation have Payroll Use defined with correct business groups.
• In the Organizational Payment Method window, create payment methods.

Chapter 4 - Page 19
- Bank accounts you assign to your payment methods are used for Payroll
reconciliation in your Cash Management responsibility. To use the bank accounts
in 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 in
Cash Management, specify a cash account and ledger. The ledger you specify here
should be the same ledger you assign to the GL: Ledger profile option for your Cash
Management responsibility.
• In Cash Management, you can view reconcile Payroll transactions whose bank accounts
are set up with Payroll Use and the business group assigned in the Bank Account Use is
the one you have in HR: Security profile option.
• Set up the bank transactions codes in Cash Management for the bank account defined
in Payroll: Payments and Stopped Payments.
Use the Setting Up Oracle Payroll for Oracle Cash Management Integration section in the

Chapter 4 - Page 20

(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 you
are defining. The system displays the Bank Transaction Codes window, which includes
bank 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 Matching
Order 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 of
transactions to match.
• Optionally, select the Correction Method.

Chapter 4 - Page 21
• Optionally, select whether to create transactions for any miscellaneous payments and
miscellaneous receipts reported on the bank statement when no transaction number is
provided. If you selected Create option, specify the Receivables Activity type and
Receipt Method.
• Click Save to record the bank transaction code. Similarly, you can define other
transaction codes for the bank account.
Use the Bank Transaction Codes section in the Oracle Cash Management User Guide for

Chapter 4 - Page 22
Maintaining Bank Account Signing Authorities
Maintaining Bank Account Signing Authorities

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

Chapter 4 - Page 23
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 signing
authority:
• Enter the potential signing authorities in Oracle HRMS. Non-Oracle HRMS users can
enter 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 Signing
Authority Approval system parameter. The default is Workflow Enabled.
• Oracle Workflow will change the status of all new signing authorities from Pending to
Approved 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 Cash

Chapter 4 - Page 24
Bank Account Signing Authorities: Entering Signing Authority
Bank Account Signing Authorities: Entering Signing Authority

(N) Cash Management, Vision Operations (USA) > Setup > Banks > Bank Account Signing
Authority
Perform these setup steps to set up the prerequisites to set up a bank account signing
authority:
• In the Find Bank Account window, query and select the bank account, for which you
want to define the signing authority. The system displays the Bank Account Signing
Authority window, which includes bank account, bank information, and two regions for
defining 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 a
signer multiple times on the same account, but you cannot overlap the effective date ranges.

Chapter 4 - Page 25
If the start date of a new entry for the same signer and bank account is before the earliest
start date of the existing entries, the end date should be prior to the earliest start date of the
existing entries.
Enter a Signing Authority Multiple Times
You may enter a signer 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 earliest
start date of the existing entries, the end date should be before the earliest start date of the
existing entries.
Example To add signer A’s limit for April through June 2005, enter the start and end dates to
be 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 Cash

Chapter 4 - Page 26
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 signing
authority.
• Update the existing signing authority record with an effective end date and enter another
record 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.

Chapter 4 - Page 27
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

Chapter 4 - Page 28
Quiz
Answers: 2
Quiz Specifications
• The correct answer is “Entering the Tax Registration Number while creating a bank is
optional”.

Chapter 4 - Page 29
Quiz
Answers: 2
Quiz Specifications
• The correct answer is “The Branch Type field is mandatory while creating a bank
branch”.

Chapter 4 - Page 30
Quiz
Answers: 2
Quiz Specifications
• The correct answer is “In Reconciliation Controls, we have two Payables Matching order
and one Receivables Matching order”.

Chapter 4 - Page 31
Quiz
Answers: 3, 4
Quiz Specifications
• The correct answers are “Ledger and GL Cash Account”.

Chapter 4 - Page 32
Summary

Chapter 4 - Page 33

Chapter 4 - Page 34
Bank Transfers
Chapter 5
Bank Transfers
Chapter 5 - Page 1
Bank Transfers
Chapter 5 - Page 2
Cash Transactions
Bank Transfers
Chapter 5 - Page 3
Objectives
Bank Transfers
Chapter 5 - Page 4
Agenda
Bank Transfers
Chapter 5 - Page 5
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 bank
account 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 processing
for bank account transfers is managed using Oracle Payments. Journal entries are created
through a centralized subledger accounting engine.
From the point of view of bank account ownership, you can either do a Intra-Company bank
transfer or a Inter-Company bank transfer. Intra-company transfers represent cash transfers
between two internal bank accounts that belong to the same legal entity, while Inter-company
transfers represent cash transfers between two internal bank accounts that belong to two
different legal entities. In case of such transfers, the system can produce balanced journal
entries for both legal entities.
And from the point of view of transfer currency, you can either do a Domestic bank transfer or
an International bank transfer. In Domestic bank transfer, the currency of both bank accounts
and the transfer amount is the same. For example, you are transferring USD between two
bank accounts that are denominated in USD. In International bank transfer, The currency of
one bank account is the same as the currency of the transfer amount but the currency of the
Bank Transfers
Chapter 5 - Page 6
other bank account is different. For example, you are transferring USD from a bank account
denominated in USD to the bank account denominated in EUR.
Bank Transfers
Chapter 5 - Page 7
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
Chapter 5 - Page 8
Bank Transfers Process Flow
Bank Transfers
Chapter 5 - Page 9
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, Vision
Operations (USA) responsibility.
• Click Create.
• Enter the bank account transfer information.
- Note: If you select a payment template, the bank account transfer attributes
defined 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 as
manual authorization, payment and journal creation only after it has been validated.
Bank Transfers
Chapter 5 - Page 10
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 Cash
Management, 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 to
Oracle Payments. If they do not require payment processing, they will now be available for
journal creation.
Bank Transfers
Chapter 5 - Page 11
Integrating with Payments
Integrating with Payments

Note: If the payment is successfully processed in Oracle Payments, the status of the bank
account transfer will be automatically set to Settled. If the payment is not successfully
processed, the status of the bank account transfer will be automatically set to Failed and may
require the user's intervention to recreate the transfer.
Bank Transfers
Chapter 5 - Page 12
Creating Journal Entry Rules
Creating Journal Entry Rules

Create journal entries for eligible accounting events generated by Bank Account Transfers
and Bank Statement Cashflows by submitting Create Accounting concurrent program. The
program creates and, optionally, transfers and posts journal entries to General Ledger. If you
do not transfer the journals to General Ledger immediately, you can later submit Transfer
Journal Entries to GL concurrent program.
In addition to creating final accounting entries, the program can be run in a draft mode, in
which case draft journal entries will be created. Such journals cannot be transferred or posted
to General Ledger.
You can transfer automatically created journal entries to General Ledger at the same time as
you 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 concurrent
program.
Once the journals are created, you can view them in the transaction windows in Oracle Cash
Management. Similarly, you can drill down from the journal entry in Oracle General Ledger to
the source transaction in Oracle Cash Management.
Bank Transfers
Chapter 5 - Page 13
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, Vision
• Click Create.
• Enter a Subtype Name.
• Click Apply.
Bank Transfers
Chapter 5 - Page 14
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, Vision
• Click Create.
• Enter payment template attributes on General Details and Payment Details tabs.
• Click Apply.
Bank Transfers
Chapter 5 - Page 15
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 Cash
Positioning as inflow and outflow sources.
Bank Transfers
Chapter 5 - Page 16
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 Cashflow
Mapping window in Oracle Cash Management to map your bank transaction codes to general
ledger accounts and optional search strings, used for pattern matches with the data in the
description field of the bank statement line.
Optionally provide a reference to add to the bank statement line when the combination of bank
transaction code and search string is found in the bank statement line, to be used for creating
reports 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 bank
account 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 previously
defined in the Bank Statement Transaction Codes window.
• Optionally, enter a search string. The search strings are used for pattern matches with
the information in the description field of the bank statement line.
Bank Transfers
Chapter 5 - Page 17
• Enter the GL Account Number which will be used to record the receipt or expense. The
cash GL Account Number will be derived from the bank accounts cash GL account
defined in the General Controls.
• Optionally, enter the Reference information. This can be used for reporting purposes and
will be included in the journal entry associated with the created cashflow.
• Optionally, Select a Transaction Subtype.
Bank Transfers
Chapter 5 - Page 18
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 reconciled
to 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 your
systems, it is recommended that you run the AutoReconciliation program or
manually 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 or
bank statement lines for which cashflows have been created in the past unless the cashflow
has been cancelled.
You can run Create Accounting concurrent program to process raised accounting events and
create journal entries.
Bank Transfers
Chapter 5 - Page 19

A cashflow will be created and an accounting event raised if a match as specified in the Bank
Statement Cashflow Mappings window for the bank account is found. The program
automatically generates the Bank Statement Cashflow Creation & Execution Report, which
lists all of the details of the created cashflows.
• You can account for these cashflows in your subledger by running the create accounting
program.
- Note: Cashflows created from bank statements are created in a cleared status
because by nature they have already cleared the bank. These cashflows can not
be uncleared, but if they have not been reconciled they can be canceled.
• Run the AutoReconciliation program for the bank statement to reconcile the cashflows
that were created.
Bank Transfers
Chapter 5 - Page 20
Quiz
Answers: 1
Quiz Specifications
• The correct answer is “A bank account transfer is available for journal creation only after
it is validated”.
Bank Transfers
Chapter 5 - Page 21
Quiz
Answers: 1, 3
Quiz Specifications
• The correct answer is “Cashflows can be generated using the Generate Sweep
Transactions and Cash Leveling programs among others”.
Bank Transfers
Chapter 5 - Page 22
Quiz
Answers: 2
Quiz Specifications
• The correct answer is “Cash Management supports both automatic and manual creation
of journal entries”.
Bank Transfers
Chapter 5 - Page 23
Quiz
Answers: 3
Quiz Specifications
• The correct answer is “Payment Process Request”.
Bank Transfers
Chapter 5 - Page 24
Summary
Bank Transfers
Chapter 5 - Page 25
Bank Transfers
Chapter 5 - Page 26
Managing Bank Statements
Chapter 6

Chapter 6 - Page 1

Chapter 6 - Page 2

Chapter 6 - Page 3
Objectives

Chapter 6 - Page 4
Agenda

Chapter 6 - Page 5
Overview
Overview
This graphic depicts the Bank Statement process flow from receiving and loading bank
statement to performing reconciliation to creating journal entries and posting to General
Ledger.

Chapter 6 - Page 6
Entering Bank Information
Entering Bank Information

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

Chapter 6 - Page 7
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 bank
statement information into Oracle Cash Management.
If your bank provides bank statements in a flat file, you can use the bank statement open
interface 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

Chapter 6 - Page 8
Loading Bank Statement Open Interface: Using the Bank
Statement Loader Program
Loading Bank Statement Open Interface: Using the Bank Statement Loader
Program
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 an
electronic 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 Statement
Loader program completes successfully.
• Load, Import, and AutoReconciliation: Bank Statement Import and AutoReconciliation
programs launch after successful completion of the Bank Statement Loader program.
In either case, if the Bank Statement Loader program completes with errors or warnings, the
concurrent request terminates. You can review the exceptions encountered by the Bank
Statement Loader program using the Bank Statement Loader Execution Report.

Chapter 6 - Page 9
Loading Bank Statement Open Interface: Using a Custom Loader
Program
Loading Bank Statement Open Interface: Using a Custom Loader Program

First, define own bank statement mapping rule if necessary. Then, run the custom loader
program against the bank statement file to populate the Bank Statement Open Interface
tables. 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 header
information is correctly inserted into the CE_STATEMENT_HEADERS_INT_ALL table.
You can use the Bank Statement Interface Lines window to ensure that bank statement
transaction 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 data
using these windows or you can correct the original bank statement file and reload it using
your custom loader program.

Chapter 6 - Page 10
Loading Bank Statement Open Interface: Intra-Day Bank
Statement Loader Program
Loading Bank Statement Open Interface: Intra-Day Bank Statement Loader

Program
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 Interface
tables, where you can make corrections prior to import.
• The Load and Import option automatically starts the Intra-Day Bank Statement Import
program 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 BAI2
nor SWIFT940.
• Define a mapping template for the format of your bank statement file.

Chapter 6 - Page 11
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 your
bank. The bank delivers the prescheduled bank statements to the XML Gateway, which
validates the message, populates the Bank Statement Open Interface tables, and launches
the Bank Statement Import program to transfer bank statement data to Cash Management. If
the validation fails, the XML Gateway sends e-mail notifications to the administrator and bank
contact.
When setting up your system to receive XML bank statements, ensure that Oracle XML
Gateway, Oracle Advanced Queuing, and Oracle Workflow Business Event System are
installed and both the bank and your system should use Oracle Transport Agent. If the bank is
not using Oracle Transport Agent, the bank needs to integrate its communication software to
conform to the Oracle Transport Agent message protocol.

Chapter 6 - Page 12
Importing Bank Statements
Importing Bank Statements

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

Chapter 6 - Page 13
Importing Bank Statements: Bank Statement Validation
Importing Bank Statements: Bank Statement Validation

Use the AutoReconciliation Execution Report or the View Reconciliation Errors window to
review 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.

Chapter 6 - Page 14
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 Bank
Statement Open Interface tables.
Review the AutoReconciliation Execution Report.
Review all import and validation errors for a statement.

Chapter 6 - Page 15
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.

Chapter 6 - Page 16
Entering Bank Statements Manually (Continued)

Chapter 6 - Page 17
Quiz
Answers: 1
Quiz Specifications
• The correct answer is “If the validation of bank statements fails, the XML Gateway sends
e-mail notifications to the administrator and bank contact”.

Chapter 6 - Page 18
Quiz
Answers: 2, 4
Quiz Specifications
• The correct answer is “When you load bank statement information into the Bank
Statement Open Interface tables, the Bank Statement Import program performs the
following validations: Bank statement header, Control total, Statement line, and
Multicurrency”.

Chapter 6 - Page 19
Quiz
Answers: 1
Quiz Specifications
• The correct answer is “You can correct the data using the Bank Statement Interface and
Bank Statement Interface Lines windows”.

Chapter 6 - Page 20
Quiz
Answers: 1, 2, 4
Quiz Specifications
• The correct answer is “Load, Load and Import, and Load, Import, and AutoReconciliation
are the valid modes for execution of the Bank Statement Loader program”.

Chapter 6 - Page 21
Summary

Chapter 6 - Page 22
Reconciling Bank Statements
Chapter 7

Chapter 7 - Page 1

Chapter 7 - Page 2

Chapter 7 - Page 3
Objectives

Chapter 7 - Page 4
Objectives

Chapter 7 - Page 5
Agenda

Chapter 7 - Page 6
Agenda

Chapter 7 - Page 7
Agenda

Chapter 7 - Page 8
Overview
Overview
This graphic depicts the Bank Statement process flow from receiving and loading bank
statement to performing reconciliation to creating journal entries and posting to General
Ledger.
You can use the AutoReconciliation program to automatically reconcile any bank statement in
Oracle Cash Management.
After you run the program, you can review the AutoReconciliation Execution Report to identify
any reconciliation errors that need to be corrected. You can run this report automatically or as
needed, and also review reconciliation errors online.
After automatically reconciling a bank statement and correcting any reconciliation errors, you
can run the Bank Statement Detail Report, which shows statement and transaction data for a
specific bank account statement, any unreconciled transactions separately with their current
status, and the statement totals for each transaction type. Or you can use the View Bank
Statements window to review reconciled and unreconciled statement lines. If lines remained
unreconciled, you can update the bank statement and rerun the AutoReconciliation program
and reconcile the statement lines manually.
Once you have reviewed your reconciliation results, you can transfer the accounting entries to
your general ledger from Oracle Payables and Oracle Receivables. If you use Oracle General

Chapter 7 - Page 9
Ledger, you can reconcile you General Ledger cash account balance to your bank account
balance by running the GL Reconciliation Report.

Chapter 7 - Page 10
Overview (Continued)
Overview (continued)
You can run the following programs from the Submit Request, Reconcile Bank Statements, or
the Bank Statement Interface windows. You can also import and automatically reconcile a
bank statement from the Bank Statement Loader program by selecting the Load, Import, and
AutoReconciliation option.
• AutoReconciliation: Used to reconcile any bank statement entered in Cash
Management.
• Bank Statement Import: Used to import an electronic bank statement after loading the
bank statement file into the Bank Statement Open Interface tables
• Bank Statement Import and AutoReconciliation: Used to import and reconcile a bank
statement in the same run.

Chapter 7 - Page 11
Bank reconciliation features linking to multiple sources such as Oracle Payables, Oracle
Receivables, Oracle Payroll, Oracle Treasury, and Oracle General Ledger from Oracle Cash
Management.

Chapter 7 - Page 12
Bank reconciliation features reconciling bank accounts across different operating units.

Chapter 7 - Page 13
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 controlling
cash. In this release, Cash Management provides new features to support the Single
European Payments Area (SEPA) framework. SEPA has been adopted by 27 EU member
states plus Iceland, Liechtenstein, Norway and Switzerland.
In order to be able to make SEPA payments, the following information (amongst others) is
mandatory:
• BIC (Bank Identifier Code) for the Supplier Bank Branch
• IBAN (International Bank Account Number) for the Payer and Supplier Bank Accounts

Chapter 7 - Page 14
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 with
the 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. Following
validations 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 characters
entered is not equal to 8 or 11. Please correct the BIC code." error message pops up
when the form is form is tabbed or the form is saved.

Chapter 7 - Page 15
Note: The BIC validation will be done in the Supplier Bank Branch screens. It will also be
validated when the BIC code is entered from the supplier's screen during defining an external
bank account.

Chapter 7 - Page 16
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 following
consecutive components:
• Country code: 2 letter country code, as specified in ISO 3166, of the country in which the
bank 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 (only
uppercase), no separators. The BBAN has a fixed length per country. The BBAN
includes an explicit identification code of the bank/branch servicing.
• Some countries also add the first 4 characters of the BIC code (between the check digits
and the basic bank account number).
The IBAN is validated using MOD97 check.

Chapter 7 - Page 17
SEPA Credit Transfer: Enable Reconciliation at Payment Group
Level
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 the
sum of the all the payments within a group. As a result, the bank statements sent by the bank
will contain the payment group number and payment amount.
The reconciliation and clearing logic in Oracle Cash Management has been enhanced to allow
Manual and Automatic Reconciliation of bank statements with Payment Group number.
Note: For a payment batch created in Oracle Payments to appear in Oracle Cash
Management ( for Reconciliation), it is mandatory that the minimum grouping parameters used
in payment instruction are as follows:
• Internal bank account
• Payment currency
• First Party Organization (Operating Unit)

Chapter 7 - Page 18
SEPA Credit Transfer: Reconciliation logic for Manual
Reconciliation
SEPA Credit Transfer: Reconciliation logic for Manual Reconciliation

In batch booking, a flag identifies whether a single entry per individual transaction or a batch
entry 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, then
the bank statement will have one debit transaction line for the entire group totaling EUR
100,000.
• If the batch booking flag is not checked, there will be 4 debit lines for each of the
payment line with the respective amounts in the bank statement.
In the Bank Statement window, earlier the reference number field contained the logic to pick
the available transactions based on the 'payment reference number' and 'batch name', which
has 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 available
transactions window. This Group Numbers field is disabled when 'Detail', 'Batch', or 'Open
Interface' is selected.

Chapter 7 - Page 19
SEPA Credit Transfer: Reconciliation logic for Automatic
Reconciliation
SEPA Credit Transfer: Reconciliation logic for Automatic Reconciliation

In the Bank Setup window, a new 'Group' parameter has been added in the Payment
Matching 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 now
three values for matching the values, a new matching order has been added for Oracle
Payables. 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 selection
in '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 Order
1', then the system checks the value with the selection in 'Payables Matching Order 2'. If the
value is matched, then the transactions that fall in this matching order are reconciled. Else, the
system updates the transactions based on the parameter that is not selected in the matching
order.
The Automatic reconciliation report has been enhanced to give a message when no
transactions are found for a Group similar to what it gives now when there are no matching
transactions for a Batch or a Payment.

Chapter 7 - Page 20
Reconciling Bank Statements Automatically
Reconciling Bank Statements Automatically

This graphic depicts the AutoReconciliation lifecycle flow.
The AutoReconciliation Execution Report is automatically produced by Oracle Cash
Management during the AutoReconciliation process.
• It shows import and reconciliation errors that occurred during the AutoReconciliation
process.
• It lists receipts created in Receivables during AutoReconciliation.
• It includes either statement import errors or your reconciliation exceptions found during
AutoReconciliation.

Chapter 7 - Page 21
Reconciling Sweep Transactions
Reconciling Sweep Transactions

Before AutoReconciliation, you can automatically create and settle transactions in Oracle
Treasury corresponding to the sweep statement lines if a match is not found. You run the
Sweep Transactions Generation program, which searches for treasury transactions that match
the sweep statement lines details and corresponding cash pool. You can then run the
AutoReconciliation 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/

Chapter 7 - Page 22
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

Chapter 7 - Page 23
Defining Reconciliation Tolerances
Defining Reconciliation Tolerances

You can define reconciliation tolerances for the AutoReconciliation program, which reconciles
Payables payments and Receivables receipts within tolerances and automatically posts any
amount differences. General Ledger journal entries are automatically reconciled in Cash
Management 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 choose
to match by transaction number, tolerances are verified but amount differences are not
automatically accounted. For security, tolerances are not allowed on payments and voided
payments 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 the
Bank Errors account, depending on how you defined the Cash Management Payables
Tolerance Differences system parameter. If the receipt amount and the statement line amount
difference is within defined tolerances, the program posts the difference to the Receivables
Bank Charges account. For matching remittance batches using reconciliation tolerances, you
create a miscellaneous transaction for the the remittance batch amount and the bank
statement line difference by an entry in the Cash Management Receivables Activity system
parameter.

Chapter 7 - Page 24
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 account
currency.
• 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 and
the 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/loss
accounts as necessary to clear the transaction.

Chapter 7 - Page 25
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 statement
line is greater than the current date. Enter the payment’s anticipated value date in Payables at
creation time. Update the actual value date for each payment during reconciliation. Value Date
Derivation 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 Date
Payments: Value Date (actual then anticipated), Maturity Date, and Payment Date
With value date support, you can calculate a more accurate short-term cash forecast based
on value date, track actual value dates and derive more accurate lead times, and calculate a
more accurate interest on interest-bearing accounts.

Chapter 7 - Page 26
Reviewing Reconciliation Errors
Reviewing Reconciliation Errors

After running AutoReconciliation, you can review any reconciliation error from the Bank
Statement or Bank Statement Line window. The Bank Statement window shows errors for
both statements and individual lines. To review import validation errors, use the Bank
Statement Interface window.
The Bank Statement Summary Report shows summary bank statement information for a bank
account.
The Bank Statements by Document Number Report lists bank statements in document
number order, to help you identify missing and deleted statements. If you or your System
Administrator sets up the Document Sequences feature for Cash Management, then you can
print a report to list all bank statements in document number order.

Chapter 7 - Page 27
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 for
transaction 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 for
differences between the sum of the reconciled transaction and the line amount.

Chapter 7 - Page 28
Reviewing Reconciled Transactions

Chapter 7 - Page 29
Unreconciling Transactions
Unreconciling Transactions
When you unreconcile transactions, Cash Management changes the Reconciled Status of the
statement line. The unreconciled transactions are once again available for reconciliation.
Unreconciliation can be done for each reconciled statement line manually or for whole bank
statement by submitting the Unreconcile Bank Statement Program in the Submit Request
window. The program has three parameters: Bank Account, Statement Number, and Line
Number. To view the results of the Unreconcile Bank Statement program, navigate to the
Bank Statement Lines window.

Chapter 7 - Page 30
Creating Payments and Receipts
Creating Payments and Receipts

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

Chapter 7 - Page 31
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 is
reconciled 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 also
assign either an account or a distribution set to use for the miscellaneous transaction
accounting entries.
• In the Receivables Activities window in Receivables, enter values for asset tax code and
liability tax code, if required.
• Set the AR: Allow Override Of Tax Code profile option. This, with your accounting
method, 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.

Chapter 7 - Page 32
Recording Exceptions
Recording Exceptions
If you implement the automatic bank transmission feature, use the Payment Exceptions
Report to view payment exceptions generated by the bank and transmitted to your local
directory. You can view the transmission history and the actual report in the Transmissions
window. In the Find Transmissions window, choose the file type of EXCEPTION to query
exceptions reports. Select the File Text field of the file you want to view and choose Edit Field
from 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 in
Cash Management and void the payment in Payables.

Chapter 7 - Page 33
Entering Reversals

Chapter 7 - Page 34
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 following
table 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 and
the reversal entries to net out to zero. Then, the bank makes another transaction entry for the
correct transaction amount. In this example, a reversal entry of $10.00- is created to offset the
original error entry, and a new correction entry is created of $100.00, as follows:
27 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.

Chapter 7 - Page 35
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 following
table contains an example of a bank error:
27 10 $10.00 Error (should be $100.00)
Adjustment Method: The bank simply creates a new transaction entry to make up for the
difference between the original transaction amount and the error entry. In this example, the
bank generates a new adjustment entry of $90.00, which is the difference between the original
error amount of $10.00 and the correct amount of $100.00, as follows:
27 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 reconcile
automatically or manually, Cash Management allows you to match these statement lines
correctly and to provide the information on how the statement lines are reconciled to give you
a good audit trail.

Chapter 7 - Page 36
AutoReconciliation Matching
AutoReconciliation Matching
The AutoReconciliation program can match to a payment, receipt, miscellaneous payment, or
miscellaneous receipt line. The program handles both reversal and adjustment methods. If
you don’t have the transaction number, Cash Management will use the invoice and the agent
bank account number to match.
Reversal Method: For example, if the reversal entry is a miscellaneous receipt, then the
program 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 the
original transaction.
If the error statement line is already reconciled to a transaction due to the amount difference
between the transaction and statement line falling within the tolerance amount, you must first
unreconcile the error statement line before the AutoReconciliation program will reconcile it
with the correction statement line.

Chapter 7 - Page 37
Manual Reconciliation Matching
Manual Reconciliation Matching

If you are reconciling bank statements manually, the Reconcile Bank Statements window
retrieves all available statement lines and transactions that match your selection criteria. Then
you can decide how you want to reconcile the correction entry.
If you have already reconciled the error statement line to a transaction, you must first
unreconcile 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. You
can manually reconcile between multiple statement lines.

Chapter 7 - Page 38
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 the
payments are created in Oracle Payables and are then ready to be transferred to the General
Ledger Interface tables. The Cleared Transactions Report shows transactions that were
cleared or reconciled both manually and automatically and can be submitted for Payables
payments 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 cash
account balances. When you clear a transaction, you assign a cleared date and status to the
transaction, and data used to create accounting entries is recorded in Receivables. When you
reconcile a transaction, the uncleared transaction is first cleared and then matched to bank
statements.

Chapter 7 - Page 39
Transferring Bank Reconciliation Transactions to Your General
Ledger
Transferring Bank Reconciliation Transactions to Your General Ledger

When you reconcile bank statement lines to journal entries in General Ledger, no
reconciliation accounting entries are created. Transferring to General Ledger is only required
for entries created in Payables and Receivables. Cash Management does not provide
reconciliation accounting data to Payroll.
If you use General Ledger, you need to run the Journal Import program after transferring your
reconciliation accounting transactions from Payables or Receivables to create journal entries
based 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 to
the 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 summary
report lists the General Ledger cash account balance, an adjusted balance for the bank
statement, a separate adjustment amount for unreconciled receipts, payments, journal entries
which have been recorded in the General Ledger cash account, and bank errors. The detail
report provides details for the unreconciled items as well as the information contained in the
Summary report.

Chapter 7 - Page 40
Archiving and Purging
Archiving and Purging

After you import a bank statement into Oracle Cash Management, you can purge its data from
the Bank Statement Open Interface tables. After you reconcile it, you can purge its data from
the Bank Statement tables. To save a copy of your bank statement, you can archive the data
before you purge it. You can also archive or purge intra-day bank statement data from the
Bank Statement Open Interface and the Intra-Day Bank Statement tables.
You can run the Archive/Purge Bank Statements program to archive and purge. When the
program completes, it automatically prints the Archive/Purge Bank Statements Report to
display the number of headers and lines that were archived or purged.
When you purge a bank statement, you must also purge any system transactions reconciled
to 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 Cash
Management to reconcile journal entries in General Ledger, you should run the Cash
Management 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 data
from a saved archive file, use first the ORACLE RDBMS Import utility to populate the special
archive tables. Then, run a custom SQL* Loader script to transfer the data.

Chapter 7 - Page 41
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 and
lines) 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 by
the Bank Purging program.
Archiving and Purging Automatically
If you set the Archive and Purge options in the System Parameters window, you can
automatically archive or purge bank statement data from the Bank Statement Open Interface
tables after bank statements have been imported into Oracle Cash Management. You can
also automatically archive or purge imported intra-day bank statement data from the Bank
Statement 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.

Chapter 7 - Page 42
Summary

Chapter 7 - Page 43
Quiz
Answers: 2
Quiz Specifications
• The correct answer is “A SEPA Credit Transfer (SCT) is a payment instrument for the
execution of credit transfers in Euro between two parties located in the SEPA (Single
European Payment Area) zone”.

Chapter 7 - Page 44
Quiz
Answers: 1, 2, 3
Quiz Specifications
• The correct answer is “During automatic sweep generation, the following error messages
are shown in the output file: Transaction generation failure, incomplete cash pool setup,
Transaction generation failure, bank account number is missing, and Transaction
generation successful, with a limit warning”.

Chapter 7 - Page 45
Quiz
Answers: 2
Quiz Specifications
• The correct answer is “The three character for branch code element is optional in the
Bank Identifier Code”.

Chapter 7 - Page 46
Quiz
Answers: 2, 4
Quiz Specifications
• The correct answer is “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 the Bank Errors account, depending on how you
defined the Cash Management Payables Tolerance Differences system parameter”.

Chapter 7 - Page 47
Summary

Chapter 7 - Page 48
Cash Pools
Chapter 8
Cash Pools
Chapter 8 - Page 1
Cash Pools
Chapter 8 - Page 2
Cash Pools
Cash Pools
Chapter 8 - Page 3
Objectives
Cash Pools
Chapter 8 - Page 4
Agenda
Cash Pools
Chapter 8 - Page 5
Overview
Overview
Cash leveling or Cash Pooling is a cash management technique aimed at optimizing the
balances of the internal bank accounts held at one or several banks. It is usually performed on
a 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 accounts
set up in Oracle Treasury to the cash pool.
Cash Pools
Chapter 8 - Page 6
Creating Cash Pools
Creating Cash Pools

A cash pool is a group of bank accounts with one or more concentration accounts and multiple
sub accounts. You can create the following two types of cash pools: notional cash pools and
physical cash pools.
Cash Pools
Chapter 8 - Page 7
Viewing and Updating Cash Pools
Viewing and Updating Cash Pools

Note: If you have the appropriate user security, you can update the cash pool.
Cash Pools
Chapter 8 - Page 8
Quiz
Answers: 1
Quiz Specifications
• The correct answer is “Cash leveling can be done by transaction or by total net end-of-
day balances”.
Cash Pools
Chapter 8 - Page 9
Quiz
Answers: 1
Quiz Specifications
• The correct answer is “To perform cash leveling, you need to define a cash pool and
assign internal bank accounts set up in Oracle Treasury to the cash pool”.
Cash Pools
Chapter 8 - Page 10
Quiz
Answers: 2
Quiz Specifications
• The correct answer is “Physical Cash Pools consist of one or two concentration
accounts and multiple sub-accounts”.
Cash Pools
Chapter 8 - Page 11
Quiz
Answers: 2
Quiz Specifications
• The correct answer is “Cash leveling can only be performed daily”.
Cash Pools
Chapter 8 - Page 12
Summary
Cash Pools
Chapter 8 - Page 13
Cash Pools
Chapter 8 - Page 14
Cash Positioning
Chapter 9
Cash Positioning
Chapter 9 - Page 1
Cash Positioning
Chapter 9 - Page 2
Cash Positioning
Cash Positioning
Chapter 9 - Page 3
Objectives
Cash Positioning
Chapter 9 - Page 4
Agenda
Cash Positioning
Chapter 9 - Page 5
Overview
Overview
The daily cash positions are based on actual cash flows from various Oracle Applications. You
can generate a daily cash position for single or multiple currencies, bank accounts, and legal
entities.
Cash Positioning
Chapter 9 - Page 6
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 cash
position worksheets by specifying the sources and transaction source defaults or you can
choose to manually set the parameters for the transaction source. Then, you can save your
worksheet and use it to generate your daily cash positions. This process gathers current
source data from the selected Oracle Applications.
You can specify the sources you want to include in the cash position to create custom cash
position worksheets. You can include transaction source defaults or you can choose to
manually set the parameters for the transaction source. For more information on source type
specifications, refer to Cash Position Worksheet Page Reference.
Cash Positioning
Chapter 9 - Page 7
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 source
transactions whose cash activity date is the As Of Date for the cash position. Cash
Management 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.
Cash Positioning
Chapter 9 - Page 8
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. Overdue
transactions are open transactions with a cash activity date before the cash position As of
Date.
You can include or exclude overdue transactions for all appropriate source transaction types
in your cash positions. Including overdue transactions gives you an accurate representation of
potential cash inflows and outflows.
Cash Positioning
Chapter 9 - Page 9
Generating Cash Positions From Worksheets
Generating Cash Positions From Worksheets

You can define reusable worksheets for generating cash positions. When you submit a cash
position, Cash Management collects the necessary source data and summarizes them as
cash position amounts, based on the cash position worksheet specifications. The cash
position data is then available for update, inquiry, viewing in a Discoverer Workbook, or for
export to a spreadsheet application.
You can generate a new cash position because you have created a new worksheet or
because you want to recalculate a cash position with different submission parameters.
Cash Positioning
Chapter 9 - Page 10
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 by
your selections in the cash position worksheet.
If the previous day’s closing balance is not available, the latest available bank account
balances are displayed instead. The cash position results also show a Prior Day Cashflows
row that includes transactions between the latest available balance date and the Cash
Position As of Date.
For cash pools in the cash position, the opening balance is the sum of the previous day’s
balances or the last available balance for all the bank accounts included in the cash pool.
Cash Positioning
Chapter 9 - Page 11

Calculation Of Opening and Closing Bank Account Balances in Cash Positioning
You can also define target balances for bank accounts defined in the Company Profiles
window in Oracle Treasury. These target balances are displayed in the cash position and help
you determine the surplus or deficit balance for bank accounts that you include in your cash
position.
Cash Positioning
Chapter 9 - Page 12

Balance Gapping in Cash Positioning
A balance gap arises when you have gaps in your cash flows between the current system
date and your defined until date. This gap can occur under the circumstances mentioned on
the above slide.
Cash Positioning
Chapter 9 - Page 13
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 the
Cash Position Results Page, in the Bank Account View Page, or Cash Pool View Page, based
on 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 the
projected closing balance is not calculated for them. Instead, the opening balance is used in
calculations. You can update the transfer amount calculated and click Recalculate New
Closing Balance to recalculate the closing balances.
Cash Positioning
Chapter 9 - Page 14
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 with
only one concentration account, but differing in the transfer amount destination. The sub
account payments goes to the investment concentration account and the receipts to the sub
account originates from the funding concentration account. For sub accounts of subsidiaries,
the opening balance is used.
Cash Positioning
Chapter 9 - Page 15
Viewing Cash Position Results
Viewing Cash Position Results

Your cash position results are displayed by currency, bank account, or cash pools, depending
on your selection in the View By field in the Generate Cash Position page. You can switch
among the three views by selecting the appropriate value in the View By field and clicking
Refresh Data. Cash Management displays the cash position results in a spreadsheet format
with the rows representing the cash flows and the balances and the columns representing
either bank accounts, currencies, or cash pools.
In the Cash Position Results: Currency View page, your cash position results are displayed by
currency with each column representing a currency included in your position. If you included
subsidiary bank account balances in your cash position, they are added to the opening
balance 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 Funds
Transfer, only available to Oracle Treasury users.
• View cash position details in a Discoverer workbook.
Cash Positioning
Chapter 9 - Page 16
• Drill down to transaction details corresponding to the deal types of short term money,
discounted and fixed income securities in the Available Liquidity section.
Cash Positioning
Chapter 9 - Page 17
Viewing Cash Position Results (Continued)
Viewing Cash Position Results (continued)

In the Cash Position Results: Bank Account page, the results of your cash position are
displayed by bank account with each column representing a bank account included in your
position. If you included subsidiary bank account balances in your cash position, they are
summarized 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 clicking
Export.
• Access the Inter-Account Transfers window in Oracle Treasury by selecting Initiate Funds
Transfer, only available to Oracle Treasury users.
• View the details of the cash position in a Discoverer workbook by selecting View in
Discoverer Workbook, available only if Oracle Discoverer is installed.
• Drill down to the details of the transaction corresponding to the deal types of short term
money, discounted securities and fixed income securities in the Available Liquidity
section by clicking on an amount.
Cash Positioning
Chapter 9 - Page 18
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 be
used to manipulate information for analysis and graphical representation. Use the Export
button in the Cash Position Results page to export cash positions from Cash Management to
Microsoft Excel. This option is available only on the Windows platform, and only if Microsoft
Excel is installed.
Cash Positioning
Chapter 9 - Page 19
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 in
the Cash Position Results page, an option only available if you have Oracle Discoverer
installed.
Cash Positioning
Chapter 9 - Page 20
Quiz
Answers: 2
Quiz Specifications
• The correct answer is “The expected activity dates for Customer Receipts type in the
Cash Position Worksheet are Value Date (Actual then Anticipated), Maturity Date, or
Latest Receipt Transaction Date”.
Cash Positioning
Chapter 9 - Page 21
Quiz
Answers: 1
Quiz Specifications
• The correct answer is “You cannot create cashflows from cash positions”.
Cash Positioning
Chapter 9 - Page 22
Quiz
Answers: 2
Quiz Specifications
• The correct answer is “Closing Balance = Opening Balance + Prior Day Cash Flows +
Net Cash Flow”.
Cash Positioning
Chapter 9 - Page 23
Quiz
Answers: 2, 3, 4
Quiz Specifications
• The correct answer is “Supplier Payments, Customer Receipts, Treasury Inflow, and
Treasury Outflow”.
Cash Positioning
Chapter 9 - Page 24
Summary
Cash Positioning
Chapter 9 - Page 25
Cash Positioning
Chapter 9 - Page 26
Cash Forecasting
Chapter 10
Cash Forecasting
Chapter 10 - Page 1
Cash Forecasting
Chapter 10 - Page 2
Cash Forecasting
Cash Forecasting
Chapter 10 - Page 3
Objectives
Cash Forecasting
Chapter 10 - Page 4
Agenda
Cash Forecasting
Chapter 10 - Page 5
Overview of Cash Forecasting
Overview of Cash Forecasting

Cash forecasting is a planning tool to help you anticipate the flow of cash in and out of your
business. Use cash forecasting to:
• Anticipate the cash inflows and outflows in your business
• Project your cash needs more accurately
• Evaluate your liquidity and currency exposure to better manage your cash resources
• Earn more income through better cash investments
• Minimize borrowing costs
• Reduce bankruptcy risks
Cash Forecasting
Chapter 10 - Page 6
Sources for Cash Forecasting
Sources for Cash Forecasting

Cash Inflow Sources
• Receivables: unpaid customer invoices and cleared customer receipts (historical) and
uncleared 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
Cash Forecasting
Chapter 10 - Page 7
• 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
Chapter 10 - Page 8
Cash Forecasting and Cash Positioning
Cash Forecasting and Cash Positioning

This table depicts the differences between Cash Forecasting and Cash Positioning.
Cash Forecasting
Chapter 10 - Page 9
Defining a Cash Forecast Template
Defining a Cash Forecast Template

A template contains cash forecast specifications. When creating a template, you specify the
number and type of rows and columns. Templates determine the presentation of sources
(rows) and forecast periods (columns) for your cash forecasts. Templates also include the
name, description, and forecast period types ( GL periods or days). Each row contains a
source 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 forecast
data (rows), and for which forecast periods (columns) you are generating data. Once a
template definition is complete, you can submit a request to produce timely cash forecasts by
gathering current source information from the selected Oracle Applications.
Forecasting Overdue Transactions
You can include or exclude overdue transactions for all appropriate source transaction types
in cash forecasts. Including overdue transactions gives you an accurate representation of
potential cash inflows and outflows.
Overdue transactions are collected into one forecast period and displayed in the Overdue
Column in the Cash Forecast Amounts window and the Cash Forecast Report.
Cash Forecasting
Chapter 10 - Page 10
Generating a Cash Forecast
Generating a Cash Forecast

You can define reusable cash forecast templates to generate cash forecasts. A cash forecast
template is a matrix with each row defining the cash flow source and each column defining the
forecast period in GL periods or days. When you submit a forecast, you generate exactly the
forecast that you need by entering submission parameters. When you submit a cash forecast,
Cash Management collects the necessary source data and summarizes them as cash
forecast amounts, based on the forecast period specifications. The forecast data is then
available for update, inquiry, reporting, or export to any spreadsheet application.
Cash Management determines projected cash activity dates based on your specifications. If
you have created a forecast template with a user-defined source type, Cash Management
creates a row with zeroes when you generate a cash forecast. If you want to enter amounts
manually in the forecast amount cells for these types, click on the zero in the forecast cell and
add transactions in the Source Transactions Details page.
You can generate a new cash forecast from a template, with forecast amounts calculated
automatically. You query the template or a previously run forecast in the Forecast Templates
Search and Results page and select the Run Forecast icon or use the Submit Request
window. You can also quickly create a manually entered cash forecast.
Cash Forecasting
Generating a Cash Forecast: Multicurrency Forecasts
Generating a Cash Forecast: Multicurrency Forecasts

By using currency related submission parameters, convert all transaction amounts to a
desired currency to display in the result. Set the program to pick only the transactions in
certain transaction currency or functional currency, if required.
Cash Forecasting
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 the
slide addresses what you can change on cash forecast templates and cash forecasts.
Cash Forecasting
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 be
very useful to manipulate information for analysis and graphical representation.
Use the Export button in the Cash Forecast Results page to export cash forecasts from Cash
Management to Microsoft Excel.
Cash Forecasting
Implementation Considerations
Cash Forecasting
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 a
cash 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.
Cash Forecasting
• If you submit this report using Oracle Report eXchange, then you can export the data to
your 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.
Cash Forecasting
Quiz
Answers: 2
Quiz Specifications
• The correct answer is “GL encumbrances and GL budget outflows are outflow sources
and revenue account budget amounts are inflow sources for Cash Forecasting. ”.
Cash Forecasting
Quiz
Answers: 4
Quiz Specifications
• The correct answer is “You cannot generate cash forecast data online as in Cash
Positioning but through concurrent programs and manually.”.
Cash Forecasting
Quiz
Answers: 1
Quiz Specifications
• The correct answer is “It is possible to have user defined inflow and outflow sources for
Cash Forecasting”.
Cash Forecasting
Quiz
Answers: 1
Quiz Specifications
• The correct answer is “You can delete rows and columns for new templates while
modifying a Cash Forecast”.
Cash Forecasting
Summary
Cash Forecasting
Accounting Events
Chapter 11
Accounting Events
Chapter 11 - Page 1
Accounting Events
Chapter 11 - Page 2
Accounting Events
Accounting Events
Chapter 11 - Page 3
Objectives
Accounting Events
Chapter 11 - Page 4
Agenda
Accounting Events
Chapter 11 - Page 5
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 bank
statement 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 account
transfers and cashflows.
Oracle Subledger Accounting is a rule-based accounting engine that centralizes journal entry
creation for E-Business Suite products. SLA creates journal entries for subledgers and
transfers them to Oracle General Ledger.
Cash Management provides predefined rules that SLA uses to create journal entries for each
accounting event. You can also define your own accounting rules.
SLA allows multiple accounting representations for a single business event, resolving
differences between corporate and local fiscal accounting requirements. The most granular
level 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 the
Transactions pages in Cash Management. You can also drill down from the journal entry in
General Ledger to view its source transaction in Cash Management.
Accounting Events
Chapter 11 - Page 6
Oracle Subledger Accounting
Oracle Subledger Accounting

Oracle Subledger Accounting (SLA) is primarily a rule-based accounting engine that
centralizes accounting for Oracle E-Business Suite products as well as providing an
accounting toolset and repository. It is not a separate product in itself, but it is Oracle’s engine
catering to the accounting needs of both Oracle and external modules.
Together with the ledger support, it enables support of multiple accounting requirements
concurrently in a single instance. Different accounting regulations can be satisfied by
maintaining and applying different sets of rules to different sets of transactions. It can also
provide accounting for the same transaction with multiple methods.
By maintaining a full link between the transaction and accounting data, it allows powerful
reconciliation and auditing capabilities.
SLA provides the setup user interface (UI), inquiry UI, and data model for accounting across
Oracle E-Business Suite modules. This common UI provides consistency in reporting,
analysis, and user experience.
Accounting Events
Chapter 11 - Page 7
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
Accounting Events
Chapter 11 - Page 8
• Globalizations
For complete details regarding Subledger Accounting, see: Oracle Subledger Accounting
Implementation Guide.
Accounting Events
Chapter 11 - Page 9
Subledger Accounting: Key Concepts
Subledger Accounting Key Concepts

The event model defined in SLA for each subledger represents the transaction or document
types and the lifecycle of each transaction:
• Event class classifies transaction types
• Event type defines possible actions on each event class with possible accounting
significance.
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 the
transaction attributes and information made available to be used during journal rule setup and
journal entry generation.
Accounting Events
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 Bank
Statement Cashflows. SLA uses seeded accounting rules to create journal entries for each
event type.
Bank Account Transfer: An accounting event is raised when a bank account transfer is
created, canceled, cleared or uncleared.
If you run the Create Accounting Program to create accounting for these event types, no
accounting is created. Additionally, once the Bank Account Transfer is cleared and the Create
Accounting Program is successfully run, the status of the accounting events is set to ‘Partially
Accounted’ 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 the
bank 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 account
and an inflow for the destination bank account. Since you clear bank account transfers by
bank account, the clearing status of cashflows can be different.
Accounting Events
Bank Statement Cashflows: An accounting event is raised when a bank statement cashflow is
recorded or canceled.
If you create journal entries for the Bank Statement Cashflow Recorded event and then cancel
the bank statement cashflow, the Bank Statement Cashflow Canceled event will produce
reversing journal entries. If you cancel a bank statement cashflow before creating journal
entries, then no journal entries are created at all.
Accounting Events
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 Cash
Management, The setup for subledger accounting is common for all subledger applications
and involves setting up journal entries, defining a subledger accounting method and assigning
the subledger accounting method to the ledger. The setup steps are described in detail in the
Oracle Subledger Accounting Implementation Guide.
Accounting Events
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 all
eligible accounting events, creates journal entries, and transfers them to GL. You can
schedule 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 are
created in the system. You can also specify other parameters to determine whether to
automatically transfer and post journal entries to General Ledger when the program runs or to
specify 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 available
accounting events.
• End Date: Specify the last date
• Mode: Draft or Final
• Errors Only: Yes, No
Accounting Events
• Report: Summary, Detail, or No Report
• Transfer to General Ledger: Yes, No
• Post in General Ledger: Yes, No
• Include User Transaction Identifiers: Yes, No
Accounting Events
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.
Accounting Events
Quiz
Answers: 1
Quiz Specifications
• The correct answer is “You can define your own accounting rules to create journal
entries for accounting events”.
Accounting Events
Quiz
Answers: 2, 4
Quiz Specifications
• The correct answer is “The two event classes for Cash Management are Bank Account
Transfer and Bank Statement Cashflows”.
Accounting Events
Quiz
Answers: 2
Quiz Specifications
• The correct answer is “Oracle Subledger Accounting (SLA) is not a separate product in
itself, but it is Oracle’s engine catering to the accounting needs of both Oracle and
external modules”.
Accounting Events
Quiz
Answers: 2
Quiz Specifications
• The correct answer is “You can automatically transfer and post journals to General
Ledger”.
Accounting Events
Summary
Accounting Events
Accounting Events
Balances and Interest
Chapter 12

Chapter 12 - Page 1

Chapter 12 - Page 2

Chapter 12 - Page 3
Objectives

Chapter 12 - Page 4
Agenda

Chapter 12 - Page 5
Agenda (Continued)

Chapter 12 - Page 6
Overview
Overview
Bank account balance maintenance and reporting is supported for all internal bank accounts
in 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, and
year-to-date average.
Reporting tools are available to view all this centrally stored balance history for trend analysis
as well as to compare actual versus projected balances.

Chapter 12 - Page 7
You can also verify interest amounts charged or credited by banks based on balance history
and user-defined interest rate schedules.

Chapter 12 - Page 8
Tracking Bank Balances by Account

(N) Cash Management, Vision Operations (USA) > Bank Account Balances > Maintenance
To maintain bank balance by account, complete the following steps:
• Enter or select Legal Entity, Bank Name, Currency, Account Name, and/or Account
Number as search criteria.
• Click Go.
• Select the account you want to update and click the Update icon for either Historical
Balances 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 is
automatically calculated as a sum of balances of the pool participants. If the Notional Cash
Pool 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, you
need to assign an interest rate schedule to such accounts.

Chapter 12 - Page 9
Tracking Bank Balances for Multiple Accounts
Tracking Bank Balances for Multiple Accounts

(N) Cash Management, Vision Operations (USA) > View > Bank Balances > Bank Account
Balances
To maintain bank balances for multiple accounts, complete the following steps:
• Enter or select Legal Entity, Bank Name, Currency, Account Name, and/or Account
Number 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.

Bank Balance Types

Viewing Actual, Historic, and Projected Balances
Viewing Actual, Historic, and Projected Balances

(N) Cash Management, Vision Operations (USA) > View > Bank Balances > Bank Account
Balances
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 search
criteria.
• Click Go.
• Select the account you want to update and click Update icon for either Historical
Balances 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 multiple
dates or multiple bank accounts for one date.
You can also automatically upload bank statement to reflect in the bank balances using the
Bank Statement Loader program.
The following balances reported on the bank statement are populated as new balance values
for 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 Bank
Accounts
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 following
setup 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 and
click Next.
• Enter the interest rates that will apply to the balance amount ranges you have defined in
the previous step and click Next.
• Click Assign Accounts and select bank accounts to which this interest rate schedule will
apply.
• Click Finish.

Note: If you have bank accounts authorized for use in Oracle Treasury, you have to assign an
interest 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 used
in the calculation.

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 Advanced
Search page. In this case, enter the search criteria and click Go. The bank account
balances 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 this
case, select a view name from the list and click Go. The bank account balances will be
displayed 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 view
created, you will be taken to the Views page. In this case, click Personalize and then
Create 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, arrange
them in the desired order, rename, if needed, and add totals where appropriate. You can
also 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 bank
account balance data. Please note that you must select at least either a Name or
Account Number.
• Click Apply.

(Continued)
Creating Reports for Account Balances and Interest Calculations (continued)

Bank Account Balances Single Date Report and Bank Account Balances Date Range Report
can show all the bank account balances converted into a single currency, if you specify a
reporting 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 account
balance”.

Quiz
Answers: 4
Quiz Specifications
• The correct answer is “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, and year-to-date average”.

Quiz
Answers: 2
Quiz Specifications
• The correct answer is “In the Create Schedule page, the default value of Interest
Rounding is Nearest”.

Quiz
Answers: 1
Quiz Specifications
• The correct answer is “The following XML Publisher reports for Account Balances and
Interest Calculations are available: Bank Account Balances Single Date Report, Bank
Account Balances Date Range Report, and Bank Account Balances Actual versus
Projected”.

Summary



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U.S. GOVERNMENT RIGHTS

Mathew Daniel, Melanie Heisler

Technical Contributors and Reviewers

Lata Sundar, Kathryn Wohnoutka

This book was published using: Oracle Tutor

Oracle Cash Management Overview .............................................................................................................1-1

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R12.x Oracle Cash Management Fundamentals Table of Contents

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R12.x Oracle Cash Management Fundamentals Table of Contents

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R12.x Oracle Cash Management Fundamentals Table of Contents

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R12.x Oracle Cash Management Fundamentals Table of Contents

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R12.x Oracle Cash Management Fundamentals Table of Contents

• Thorough knowledge of Oracle Applications.

• Working experience with Cash Management.

• There are no prerequisites for this course.

How This Course Is Organized

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R12.x Oracle Cash Management Fundamentals Table of Contents

• System release bulletins

• Installation and user’s guides

• International Oracle User’s Group (IOUG) articles

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R12.x Oracle Cash Management Fundamentals Table of Contents

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R12.x Oracle Cash Management Fundamentals Table of Contents

Passwords DROP USER scott

Lowercase Syntax variables CREATE ROLE role

Typographic Conventions in Oracle Application Navigation Paths

This simplified path translates to the following:

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

3. (B) Click the Approve button.

(ST) = Sub Tab

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R12.x Oracle Cash Management Fundamentals Table of Contents

The following help navigation path, for example—

(Help) General Ledger > Journals > Enter Journals

—represents the following sequence of actions:

2. Under the General Ledger entry, expand Journals.

3. Under Journals, select Enter Journals.

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R12.x Oracle Cash Management Fundamentals Table of Contents

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Oracle Cash Management Overview

Oracle Cash Management Overview

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Oracle Cash Management Overview

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Oracle Cash Management Overview

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Oracle Cash Management Overview

Copyright © Oracle, 2010. All rights reserved.

Oracle Cash Management Overview