Oracle Cash Management

Transcription

1 Oracle Cash Management User Guide Release 11i Part No. A August 2004

2 Oracle Cash Management User Guide, Release 11i Part No. A Copyright 1995, 2004, Oracle. All rights reserved. Author: Janet Coshow Major Contributing Authors: Amrita Mehrok, Kristin Penaskovic, Carolyn Jusuf, Kay Adams, Frank Colligan, Sally Screven The Programs (which include both the software and documentation) contain proprietary information; they are provided under a license agreement containing restrictions on use and disclosure and are also protected by copyright, patent, and other intellectual and industrial property laws. Reverse engineering, disassembly, or decompilation of the Programs, except to the extent required to obtain interoperability with other independently created software or as specified by law, is prohibited. The information contained in this document is subject to change without notice. If you find any problems in the documentation, please report them to us in writing. This document is not warranted to be error free. Except as may be expressly permitted in your license agreement for these Programs, no part of these Programs may be reproduced or transmitted in any form or by any means, electronic or mechanical, for any purpose. If the Programs are delivered to the United States Government or anyone licensing or using the Programs on behalf of the United States Government, the following notice is applicable: U.S. GOVERNMENT RIGHTS Programs, software, databases, and related documentation and technical data delivered to U.S. Government customers are commercial computer software or commercial technical data pursuant to the applicable Federal Acquisition Regulation and agency specific supplemental regulations. As such, use, duplication, disclosure, modification, and adaptation of the Programs, including documentation and technical data, shall be subject to the licensing restrictions set forth in the applicable Oracle license agreement, and, to the extent applicable, the additional rights set forth in FAR , Commercial Computer Software Restricted Rights (June 1987). Oracle Corporation, 500 Oracle Parkway, Redwood City, CA The Programs are not intended for use in any nuclear, aviation, mass transit, medical, or other inherently dangerous applications. It shall be the licensee s responsibility to take all appropriate fail safe, backup, redundancy and other measures to ensure the safe use of such applications if the Programs are used for such purposes, and we disclaim liability for any damages caused by such use of the Programs. The Programs may provide links to Web sites and access to content, products, and services from third parties. Oracle is not responsible for the availability of, or any content provided on, third party Web sites. You bear all risks associated with the use of such content. If you choose to purchase any products or services from a third party, the relationship is directly between you and the third party. Oracle is not responsible for: (a) the quality of third party products or services; or (b) fulfilling any of the terms of the agreement with the third party, including delivery of products or services and warranty obligations related to purchased products or services. Oracle is not responsible for any loss or damage of any sort that you may incur from dealing with any third party. Oracle is a registered trademark of Oracle Corporation and/or its affiliates. Other names may be trademarks of their respective owners.

3 Contents Preface xi Other Information Sources xiii Guides Related to All Products xiv User Guides Related to This Product xiv Installation and System Administration xv Other Implementation Documentation xvii Training and Support xix Do Not Use Database Tools to Modify Oracle Applications Data xix About Oracle xx Your Feedback xxi Chapter 1 Overview About Oracle Cash Management About Bank Reconciliation Bank Statements Matching Bank Statement Lines with Transactions Multi Currency Handling Integration with Oracle Receivables, Payables, Payroll, and Treasury Payables Reconciliation Accounting Payables Reconciliation Examples Receivables Reconciliation Accounting Receivables Reconciliation Examples Using Cash Management with Automatic Clearing Contents iii

4 Oracle Payroll Reconciliation Oracle Treasury Reconciliation About Cash Forecasting Oracle Applications Integration with Cash Forecasting Oracle Projects Integration With Cash Forecasting External Cashflow Open Interface and Distributed Database Integration Cash Forecast Reporting and Spreadsheet Integration Chapter 2 Setting Up Setting Up Oracle Cash Management Related Product Setup Steps Cash Management Setup Checklist Setting Up Oracle Payables for Oracle Cash Management Integration Setting Up Oracle Payables or Oracle Receivables for Oracle Cash Management Integration Setting Up Oracle Receivables for Oracle Cash Management Integration Setting Up Oracle Payroll for Oracle Cash Management Integration Setting Up Oracle Treasury for Oracle Cash Management Integration System Parameters System Parameters Window Reference Bank Transaction Codes Bank Statement Open Interface Bank Statement File Formats Bank Statement Mapping Using a Custom Loader Program: Bank Statement Headers Interface Table Bank Statement Lines Interface Table Reconciliation Open Interface Program Submission Using Reconciliation Open Interface to Reconcile Treasury Settlements Using Reconciliation Open Interface to Reconcile External Transactions CE_999_INTERFACE_V Description Package CE_999_PKG Description and Modifications iv Oracle Cash Management User Guide

5 Installing External Cash Flow Open Interface Objects in Remote Databases External Cashflow Open Interface Program Submission Preparing to Use the External Cashflow Open Interface Sequential Document Numbering Chapter 3 Managing Bank Statements Entering Bank Statements Loading the Bank Statement Open Interface Tables The Bank Statement Loader Program To Run the Bank Statement Loader Program: Bank Statement Loader Program Parameters Using a Custom Loader Program: Automatic Bank Transmission Feature Retrieving Bank Statements and Payment Exceptions Intra Day Bank Statement Loader Program Submitting the Intra Day Bank Statement Loader Program Receiving XML Bank Statements Setting Up Your System to Receive XML Bank Statements Processing XML Bank Statements Importing Bank Statements About Bank Statement Validation Reviewing Bank Statement Interface Errors Statement Interface Window Reference Reviewing Interface Errors Online for a Specific Statement Line Bank Statement Line Interface Window Reference Correcting Bank Statement Interface Errors Entering Bank Statements Manually Bank Statement Window Reference Entering Bank Statement Lines Bank Statement Interface Lines Window Reference Updating Bank Statements Chapter 4 Reconciling Bank Statements Reconciling Bank Statements Automatically Submit Automatic Reconciliation Window Reference Contents v

6 Reconciliation Tolerances Multi Currency Matching Multi Currency Clearing About Value Dates Reviewing Reconciliation Errors Reconciling Bank Statements Manually Creating Reconciled Bank Statement Lines Finding Available Detail and Batch Transactions for Reconciliation Reconciling Available Transactions and Batches Available Transactions Window Reference Reconciling an Available Remittance or Payment Batch Available Batches Window Reference Reviewing Reconciled Transactions Reconciled Transactions Window Reference Changing the Reconciliation Status Using Attachments Creating Payments and Receipts Transactions Creating Miscellaneous Transactions Miscellaneous Receipts Window Reference Recording Exceptions Entering Reversals Reversals Window Reference Reconciling Corrections and Adjustments to Bank Errors Manually Clearing and Unclearing Clear Transactions Window Reference Default Dates Window Reference Unclearing Payments and Receipts Unclear Transactions Window Reference Marking a Bank Statement as Complete Transferring Bank Reconciliation Transactions to Your General Ledger How Using Cash Management Affects Your Closing Process Archiving and Purging Imported Bank Statements Chapter 5 Cash Forecasting Cash Forecasting Creating Cash Forecast Templates Cash Forecasting Source Transaction Dates Forecasting Overdue Transactions vi Oracle Cash Management User Guide

7 Forecast Template Rows Page Reference Generating Cash Forecasts from Templates Submission Parameters Cash Forecast Results Calculation of Opening and Closing Bank Account Balances and GL Cash Position in Cash Forecasting Source Transaction Details Page Reference Modifying Cash Forecast Templates and Cash Forecasts Modifying Forecast Amounts on an Existing Cas h Forecast Add Rows or Columns Page Reference Purging Cash Forecasts Exporting Cash Forecasts to Your Spreadsheet Application Viewing Cash Forecasts in Discoverer Security in Cash Forecasting Chapter 6 Cash Positioning Cash Positioning Creating Cash Position Worksheets Cash Positioning Source Transaction Dates Overdue Transactions In Cash Positioning Cash Position Prior Day Cash Flow and Overdue Transactions Program Cash Position Worksheet Page Reference Generating Cash Positions From Worksheets Calculation Of Opening and Closing Bank Account Balances in Cash Positioning Balance Gapping in Cash Positioning Viewing Cash Position Results Cash Position Results Page: Currency View and Ban k Account View Reference Source Transaction Details Page Reference Intra Day Activities and Net Cash Flow Detail Page Reference Available Liquidity Section Details Modifying Cash Position Worksheets and Cash Position Results Exporting Cash Position Results to Your Spreadsheet Application Viewing Cash Positions in Discoverer Security in Cash Positioning Contents vii

8 Chapter 7 Inquiry and Reports Inquiry Viewing Bank Statement Reconciliation Viewing Available Transactions Viewing Payments and Receipts Cash Management Reports Cash Forecasting Reports Cash Forecast Report Cash Forecast Execution Report Purge Cash Forecasts Report Statements Reports Archive/Purge Bank Statements Report AutoReconciliation Execution Report Bank Statement Detail Report Bank Statement Loader Execution Report Bank Statement Summary Report Bank Statements by Document Number Report GL Reconciliation Report Transactions Reports Cash in Transit Report Cleared Transactions Report Transactions Available for Reconciliation Report Batches Available for Reconciliation Report Bank Purging Execution Report Payment Exceptions Report Cash Management Listings Bank Transaction Codes Listing Cash Forecast Template Listing Cash Management Programs Appendix A Navigation Paths A 1 Cash Management Window Navigation Paths A 2 Appendix B Profile Options B 1 Setting Profile Options for Cash Management B 2 Profile Options Summary B 2 Profile Options in Cash Management B 3 Profile Options Affecting, But Not Owned By, Cash Management B 3 viii Oracle Cash Management User Guide

9 Appendix C Function Security in Oracle Cash Management C 1 Function Security in Cash Management C 2 Appendix D Bank Statement Mapping Templates D 1 BAI2 Mapping Template D 2 SWIFT940 Mapping Template D 6 EDIFACT France Mapping Template D 11 Appendix E XML Mapping Rules E 1 XML Mapping Rules for Statement Header Information E 2 XML Mapping Rules for Statement Line Information E 5 Glossary Index Contents ix

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11 Preface Welcome to Release 11i of the Oracle Cash Management User Guide. This guide contains the information you need to work with Oracle Cash Management effectively. Overview and reference information Oracle Cash Management implementation suggestions Oracle Cash Management system setup Specific tasks you can accomplish using Oracle Cash Management How to use Oracle Cash Management windows Oracle Cash Management programs, reports, and listings Oracle Cash Management functions and features This preface explains how this user guide is organized and introduces other sources of information that can help you. Preface xi

12 Audience for This Guide This guide assumes you have a working knowledge of the following: The principles and customary practices of your enterprise area. Oracle Cash Management If you have never used Cash Management, we suggest you attend one or more of the Cash Management training classes available through Oracle University. The Oracle Applications graphical user interface. To learn more about the Oracle Applications graphical user interface, read the Oracle Applications User Guide. See: Other Information Sources for more information about Oracle Applications product information. How To Use This Guide This guide contains the information you need to understand and use Cash Management. This preface explains how this user guide is organized and introduces other sources of information that can help you. This guide contains the following chapters: Chapter 1 contains an overview of the Oracle Cash Management. process. Chapter 2 describes how to set up Cash Management after you have installed it. Chapter 3 describes how to manage bank statements. Chapter 4 describes how to reconcile bank statements automatically or manually, and how to perform related tasks. Chapter 5 explains how to create cash forecast templates and generate cash forecasts. Chapter 6 explains how to create cash positioning worksheets and how to generate cash positions. Chapter 7 describes how to review your cash management activities. Finally, the appendices include information about menu paths, profile options, function security, and bank statement mapping. xii Oracle Cash Management User Guide

13 Documentation Accessibility Our goal is to make Oracle products, services, and supporting documentation accessible, with good usability, to the disabled community. To that end, our documentation includes features that make information available to users of assistive technology. This documentation is available in HTML format, and contains markup to facilitate access by the disabled community. Standards will continue to evolve over time, and Oracle is actively engaged with other market leading technology vendors to address technical obstacles so that our documentation can be accessible to all of our customers. For additional information, visit the Oracle Accessibility Program Web site at Accessibility of Code Examples in Documentation JAWS, a Windows screen reader, may not always correctly read the code examples in this document. The conventions for writing code require that closing braces should appear on an otherwise empty line; however, JAWS may not always read a line of text that consists solely of a bracket or brace. Accessibility of Links to External Web Sites in Documentation This documentation may contain links to Web sites of other companies or organizations that Oracle does not own or control. Oracle neither evaluates nor makes any representations regarding the accessibility of these Web sites. Other Information Sources You can choose from many sources of information, including online documentation, training, and support services, to increase your knowledge and understanding of Oracle Cash Management. If this guide refers you to other Oracle Applications documentation, use only the Release 11i versions of those guides. Online Documentation All Oracle Applications documentation is available online (HTML or PDF). Preface xiii

14 Online Help Online help patches (HTML) are available on OracleMetaLink. About Documents Refer to the About Document for the mini pack or family pack that you have installed to learn about new documentation or documentation patches that you can download. About Documents are available on OracleMetaLink. Guides Related to All Products Oracle Applications User s Guide This guide explains how to enter data, query, run reports, and navigate using the graphical user interface (GUI) available with this release of Oracle Cash Management (and any other Oracle Applications products). This guide also includes information on setting user profiles, as well as running and reviewing reports and concurrent processes. You can access this user s guide online by choosing Getting Started with Oracle Applications from any Oracle Applications help file. User Guides Related to This Product Oracle Assets User Guide If you install Oracle Assets, you can use this manual to add assets and cost adjustments directly into Oracle Assets from invoice information in Payables. Oracle General Ledger User Guide Use this manual when you plan and define your chart of accounts, accounting period types and accounting calendar, functional currency, and set of books. The manual also describes how to define journal entry sources and categories so you can create journal entries for your general ledger. If you use multiple currencies, use this manual when you define additional rate types, and enter daily rates, Oracle Payables User Guide Refer to this manual to learn how to use Invoice Import to create invoices in Oracle Payables from Oracle Cash Management expense reports data in the Oracle Payables interface tables. This manual also xiv Oracle Cash Management User Guide

15 explains how to define suppliers, and how to specify supplier and employee numbering schemes for invoices created using Oracle Cash Management. Oracle Purchasing User Guide If you install Oracle Purchasing, refer to this user guide to read about entering and managing the requisitions and purchase orders that relate to your projects. This manual also explains how to create purchase orders from project related requisitions in the AutoCreate Documents window. Oracle Receivables User Guide Use this manual to learn more about Oracle Receivables invoice processing and invoice formatting, defining customers, importing transactions using AutoInvoice, and Defining Automatic Accounting. Oracle Business Intelligence System Implementation Guide This guide provides information about implementing Oracle Business Intelligence (BIS) in your environment. BIS 11i User Guide Online Help This guide is provided as online help only from the BIS application and includes information about intelligence reports, Discoverer workbooks, and the Performance Management Framework. Using Oracle Time Management This guide provides information about capturing work patterns such as shift hours so that this information can be used by other applications such as General Ledger. Installation and System Administration Oracle Applications Concepts This guide provides an introduction to the concepts, features, technology stack, architecture, and terminology for Oracle Applications Release 11i. It provides a useful first book to read before installing Oracle Applications. Preface xv

16 Installing Oracle Applications This guide provides instructions for managing the installation of Oracle Applications products. In Release 11i, much of the installation process is handled using Oracle Rapid Install, which minimizes the time to install Oracle Applications and the technology stack by automating many of the required steps. This guide contains instructions for using Oracle Rapid Install and lists the tasks you need to perform to finish your installation. You should use this guide in conjunction with individual product user s guides and implementation guides. Upgrading Oracle Applications Refer to this guide if you are upgrading your Oracle Applications Release 10.7 or Release 11.0 products to Release 11i. This guide describes the upgrade process and lists database and product specific upgrade tasks. You must be either at Release 10.7 (NCA, SmartClient, or character mode) or Release 11.0, to upgrade to Release 11i. You cannot upgrade to Release 11i directly from releases prior to Maintaining Oracle Applications Use this guide to help you run the various AD utilities, such as AutoUpgrade, AutoPatch, AD Administration, AD Controller, AD Relink, License Manager, and others. It contains how to steps, screenshots, and other information that you need to run the AD utilities. This guide also provides information on maintaining the Oracle Applications file system and database. Oracle Applications System Administrator s Guide This guide provides planning and reference information for the Oracle Applications System Administrator. It contains information on how to define security, customize menus and online help, and manage concurrent processing. Oracle Alert User s Guide This guide explains how to define periodic and event alerts to monitor the status of your Oracle Applications data. Oracle Applications Developer s Guide This guide contains the coding standards followed by the Oracle Applications development staff. It describes the Oracle Application xvi Oracle Cash Management User Guide

17 Object Library components needed to implement the Oracle Applications user interface described in the Oracle Applications User Interface Standards for Forms Based Products. It also provides information to help you build your custom Oracle Forms Developer forms so that they integrate with Oracle Applications. Implementation Documentation Oracle Applications Product Update Notes Use this guide as a reference for upgrading an installation of Oracle Applications. It provides a history of the changes to individual Oracle Applications products between Release 11.0 and Release 11i. It includes new features, enhancements, and changes made to database objects, profile options, and seed data for this interval. Multiple Organizations in Oracle Applications This guide describes how to set up and use Oracle Cash Management with Oracle Applications Multiple Organization support feature, so you can define and support different organization structures when running a single installation of Oracle Cash Management. Oracle Workflow Administrator s Guide This guide explains how to complete the setup steps necessary for any Oracle Applications product that includes workflow enabled processes, as well as how to monitor the progress of runtime workflow processes. Oracle Workflow Developer s Guide This guide explains how to define new workflow business processes and customize existing Oracle Applications embedded workflow processes. It also describes how to define and customize business events and event subscriptions. Oracle Workflow User s Guide This guide describes how Oracle Applications users can view and respond to workflow notifications and monitor the progress of their workflow processes. Preface xvii

18 Oracle Workflow API Reference This guide describes the APIs provided for developers and administrators to access Oracle Workflow. Oracle Applications Flexfields Guide This guide provides flexfields planning, setup and reference information for the Oracle Cash Management implementation team, as well as for users responsible for the ongoing maintenance of Oracle Applications product data. This manual also provides information on creating custom reports on flexfields data. Oracle etechnical Reference Manuals Each etechnical Reference Manual (etrm) contains database diagrams and a detailed description of database tables, forms, reports, and programs for a specific Oracle Applications product. This information helps you convert data from your existing applications and integrate Oracle Applications data with non Oracle applications, and write custom reports for Oracle Applications products. Oracle etrm is available on OracleMetaLink. Oracle Applications User Interface Standards for Forms Based Products This guide contains the user interface (UI) standards followed by the Oracle Applications development staff. It describes the UI for the Oracle Applications products and tells you how to apply this UI to the design of an application built by using Oracle Forms. Oracle Manufacturing APIs and Open Interfaces Manual This manual contains up to date information about integrating with other Oracle Manufacturing applications and with your other systems. This documentation includes APIs and open interfaces found in Oracle Manufacturing. Oracle Order Management Suite APIs and Open Interfaces Manual This manual contains up to date information about integrating with other Oracle Manufacturing applications and with your other systems. This documentation includes APIs and open interfaces found in Oracle Order Management Suite. xviii Oracle Cash Management User Guide

19 Oracle Applications Message Reference Manual This manual describes all Oracle Applications messages. This manual is available in HTML format on the documentation CD ROM for Release 11i. Training and Support Training Oracle offers a complete set of training courses to help you and your staff master Oracle Cash Management and reach full productivity quickly. These courses are organized into functional learning paths, so you take only those courses appropriate to your job or area of responsibility. You have a choice of educational environments. You can attend courses offered by Oracle University at any of our many Education Centers, you can arrange for our trainers to teach at your facility, or you can use Oracle Learning Network (OLN), Oracle University s online education utility. In addition, Oracle training professionals can tailor standard courses or develop custom courses to meet your needs. For example, you may want to use your organization structure, terminology, and data as examples in a customized training session delivered at your own facility. Support From on site support to central support, our team of experienced professionals provides the help and information you need to keep Oracle Cash Management working for you. This team includes your Technical Representative, Account Manager, and Oracle s large staff of consultants and support specialists with expertise in your business area, managing an Oracle Database, and your hardware and software environment. Do Not Use Database Tools to Modify Oracle Applications Data Oracle STRONGLY RECOMMENDS that you never use SQL*Plus, database triggers, or any other tool to modify Oracle Applications data unless otherwise instructed. Oracle provides powerful tools you can use to create, store, change, retrieve, and maintain information in an Oracle database. But if you Preface xix

20 use Oracle tools such as SQL*Plus to modify Oracle Applications data, you risk destroying the integrity of your data and you lose the ability to audit changes to your data. Because Oracle Applications tables are interrelated, any change you make using Oracle Applications can update many tables at once. But when you modify Oracle Applications data using anything other than Oracle Applications, you may change a row in one table without making corresponding changes in related tables. If your tables get out of synchronization with each other, you risk retrieving erroneous information and you risk unpredictable results throughout Oracle Applications. When you use Oracle Applications to modify your data, Oracle Applications automatically checks that your changes are valid. Oracle Applications also keeps track of who changes information. If you enter information into database tables using database tools, you may store invalid information. You also lose the ability to track who has changed your information because SQL*Plus and other database tools do not keep a record of changes. About Oracle Oracle provides an integrated line of software products for database management, applications development, decision support, and office automation, as well as Oracle Applications, an integrated suite of software modules for financial management, supply chain management, manufacturing, project systems, human resources management and customer relationship management. Oracle products are available for mainframes, minicomputers, personal computers, network computers and personal digital assistants, allowing organizations to integrate different computers, different operating systems, different networks, and even different database management systems, into a single, unified computing and information resource. Oracle is the world s leading supplier of software for information management, and the world s second largest software company. Oracle offers its database, tools, and applications products, along with related consulting, education, and support services, in over 145 countries around the world. xx Oracle Cash Management User Guide

21 Your Feedback Thank you for using Oracle Cash Management and this user guide. Oracle values your comments and feedback. At the end of this guide is a Reader s Comment Form you can use to explain what you like or dislike about Oracle Cash Management or this user guide. Mail your comments to the following address or contact your Support representative. Oracle Applications Documentation Manager Oracle Corporation 500 Oracle Parkway Redwood Shores, CA U.S.A. Preface xxi

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23 C H A P T E R 1 Overview T his chapter gives an overview of Cash Management. Overview 1 1

24 About Oracle Cash Management Oracle Cash Management is an enterprise cash management solution that helps you effectively manage and control your cash cycle. It provides comprehensive bank reconciliation and flexible cash forecasting. See Also About Bank Reconciliation: page 1 2 About Bank Statements: page 1 6 Matching Bank Statement Lines with Transactions: page 1 7 Multi Currency Handling: page 1 11 Oracle Payables Reconciliation Accounting: page 1 15 Oracle Receivables Reconciliation Accounting: page 1 21 Oracle Payroll Reconciliation: page 1 27 Using Cash Management with Automatic Clearing: page 1 24 About Cash Forecasting: page 1 31 About Bank Reconciliation The diagram in this section provides an overview of the Cash Management process, from entering bank statements to posting accounting entries to your general ledger. There are two major process steps you need to follow when reconciling bank statements: 1. Load Bank Statements: You need to enter the detailed information from each bank statement, including bank account information, deposits received by the bank, and payments cleared. You can enter bank statements manually or load electronic statements that you receive directly from your bank. (See: Entering Bank Statements Manually: page 3 32 and Loading Bank Statement Open Interface: page 3 2) 2. Reconcile Bank Statements: Once you have entered detailed bank statement information into Cash Management, you must reconcile that information with your system transactions. Cash Management provides two methods of reconciliation: 1 2 Oracle Cash Management User Guide

25 Automatic Bank statement details are automatically matched and reconciled with system transactions. This method is ideally suited for bank accounts that have a high volume of transactions. (See: Reconciling Bank Statements Automatically: page 4 2). Manual This method requires you to manually match bank statement details with system transactions. The method is ideally suited to reconciling bank accounts that have a small volume of monthly transactions. You can also use the manual reconciliation method to reconcile any bank statement details that could not be reconciled automatically. (See: Reconciling Bank Statements Manually: page 4 20) Miscellaneous Transactions During the reconciliation process, you can create miscellaneous transactions for bank originated entries, such as bank charges and interest. You can also manually enter Payables payments or Receivables receipts. The automatic reconciliation process can be set up to create miscellaneous transactions automatically. Clearing When you reconcile a transaction, the transaction is first matched to bank statement details and then cleared (if uncleared). Alternatively, you can manually clear Payables payments, Receivables receipts, miscellaneous transactions, and open interface transactions in Cash Management prior to reconciliation to maintain more up to date cash account balances. You can also use Automatic Clearing to clear receipts in Oracle Receivables. When you clear a transaction, Cash Management assigns a cleared date, cleared amount, and status to the transaction. Accounting for the cleared transaction varies by the source. If the transaction is a payment, Payables records the accounting information but you create the accounting entries in Payables. If the transaction is a receipt or a miscellaneous transaction, Receivables automatically generates the accounting entries. If the transaction is an open interface transaction, you must customize the CE_999_PKG package to implement reconciliation accounting. You cannot clear Payroll payments, General Ledger journal entries, or Treasury settlements. Review and Summarize Results Once you have completed the reconciliation process, we recommend that you review your reconciliation results. You can review the reports Overview 1 3

26 that are printed automatically from the AutoReconciliation program. You can also use the following reports: Bank Statement Detail Report Bank Statement Summary Report Bank Statements by Number Report Create Accounting Entries in Payables After you clear or reconcile Payables payments in Cash Management, you create accounting entries for the payments in Payables. These entries are then ready to be transferred to the General Ledger Interface tables. Transfer Accounting Entries to Your General Ledger Once you are satisfied that your reconciliation was completed correctly, you can post the accounting entries to your general ledger. In Payables, you create accounting entries, and then submit Transfer to General Ledger program to transfer the accounting entries to the General Ledger Interface. In Receivables, you submit the General Ledger Interface program to transfer accounting entries to the General Ledger Interface. If you have installed Oracle General Ledger, you can then submit Journal Import for either Payables or Receivables to transfer the accounting entries from the General Ledger Interface tables into Oracle General Ledger. You can reconcile your GL cash account balance to your bank account balance in Cash Management by printing the GL Reconciliation Report. 1 4 Oracle Cash Management User Guide

27 Overview 1 5

28 Bank Statements Cash Management maintains information for each bank statement you want to reconcile. You can use the Cash Management Bank Statement Open Interface to load bank statement information supplied by your bank, or you can enter and update bank statements manually. The system retains all bank statement information for audit and reference purposes, until you purge it. Each Cash Management bank statement is composed of one bank statement header and multiple bank statement lines. The bank statement header identifies the statement number, bank account number, and statement date. It also contains optional information including the bank and branch names, bank account currency, and control amounts. If a bank gives you multiple account information on a single bank statement, you must enter a separate Cash Management bank statement for each bank account, for the specific statement date. Bank Statement Lines A bank statement line can refer to one or more payments, receipts, miscellaneous transactions, open interface transactions, or journal entry lines. Each line has a line number, transaction type, date cleared (bank transaction date), and amount. Optional line information includes the bank transaction code, number, bank transaction identifier (such as the payment or deposit number), currency information (currency code, original amount in transaction currency, exchange rate), value date, agent (customer or supplier), agent bank account, a comment, and a descriptive flexfield for user defined additional information. A bank statement line s status can be one of the following: Reconciled: Some transactions have been matched against this line. The statement line may not be fully reconciled. Unreconciled: No transactions have been matched. Error: This status is a warning that the line cannot be reconciled because of a bank error in the statement that cannot be resolved. You must manually mark the statement line as Error. The transaction remains unreconciled because there is no corresponding transaction to which the line can be reconciled. External: The line does not correspond to any transaction in General Ledger, Payables, Receivables, Payroll, or the 1 6 Oracle Cash Management User Guide

29 Reconciliation Open Interface, but corresponds to a transaction in another system. You then manually mark the statement line as External. Cash Management treats it as reconciled. Bank Statement Error Reconciliation You can efficiently manage bank errors. You can automatically or manually reconcile correcting statement lines against error statement lines, thereby providing an audit trail you can use to verify correction of bank errors. For example, if your bank erroneously records a $50 payment as $500, your bank statement may show three statement lines for $500, <$500>, and $50. You can reconcile the <$500> correction against the $500 error statement line, and the $50 statement line against the original payment. Bank Statement Transaction Codes Bank statement lines are coded to identify the type of transaction the line represents. Since each bank might use a different set of transaction codes, you need to map each code a your bank uses. See Also Oracle Payables Reconciliation Accounting: page 1 15 Oracle Receivables Reconciliation Accounting: page 1 21 Reconciling Corrections and Adjustments to Bank Errors: page 4 57 Bank Transaction Codes: page 2 23 Matching Bank Statement Lines with Transactions Reconciling bank statements in Cash Management has two major steps: matching and clearing. Matching: Match a bank statement line against a Payables payment, Receivables receipt, Payroll payment, miscellaneous transaction, or open interface transaction using a transaction number (such as the payment or deposit number), bank account, amount, and currency. You can match a statement line against a Treasury settlement using date and amount. You can also match a statement line against a General Ledger journal entry. You can Overview 1 7

30 match a bank statement against a Payroll EFT payment by using transaction number and date. If matching criteria are not met, the statement line remains unmatched. For manual reconciliation, there are no restrictions for matching statement lines and transactions. Clearing: Clear the transactions that are matched to the bank statement line, if the transactions have not been cleared previously. Only Payables payments, Receivables receipts, miscellaneous transactions, and open interface transactions can be cleared. Reconciled Payroll payments and General Ledger journal entries are matched but not cleared. You can report on reconciliation exceptions, variances, and items that have been matched. Matching Criteria for Payables Transactions The Cash Management AutoReconciliation program fully matches Payables transactions against bank statement lines if the transactions meet the following criteria: For payment batches (such as EFT batches), the Reference or Payment Batch Name matches the statement line Transaction Number, and the transaction amount is within the reconciliation tolerance. For the detail payment transactions and stopped transactions, the matching sequence searches in the following order: 1. payment number 2. invoice number and supplier bank account 3. invoice number and supplier name Also, the transaction amount is within the reconciliation tolerance. If the bank statement does not provide a check number for a payment, then matching to the invoice number and supplier bank account number is particularly useful. For stopped transactions the payment must first be stopped or voided in Payables. 1 8 Oracle Cash Management User Guide

31 Matching Criteria for Receivables Transactions The Cash Management AutoReconciliation program fully matches Receivables transactions against bank statement lines if the transactions meet the following criteria: For remittance batches (such as Direct Debit batches), the Remittance Batch Deposit Number or Receipt Batch Name matches the statement line Transaction Number and the transaction amount is within the reconciliation tolerance. For detail remittance transactions, NSF (Non Sufficient Funds), and Rejected transactions, the matching sequence searches in the following order: 1. receipt number 2. invoice number and customer bank account number 3. invoice number and customer name Also, the transaction amount is within the reconciliation tolerance. If the bank statement does not provide a receipt number for a receipt, then matching to the invoice number and customer bank account number is particularly useful. For NSF (Non Sufficient Funds) or Rejected transactions the receipt must first be reversed in Oracle Receivables. Matching Criteria for Oracle Payroll Transactions The Cash Management AutoReconciliation program matches Oracle Payroll manual transactions against bank statement lines if the transactions meet the following criteria: For manual Payroll payments, the payment number matches the statement line transactions number and the payment amount, and the payment amount matches the statement line amount. For Oracle Payroll EFT transactions, the matching sequence searches in the following order 1. transaction number and transaction date 2. transaction number, batch amount, and transaction date Reconciliation tolerances do not apply to Payroll payments. Overview 1 9

32 Matching Criteria for Miscellaneous Transactions The Cash Management AutoReconciliation program matches miscellaneous transactions if the transactions meet the following criteria: If the transaction type matches to regular miscellaneous transactions: The transaction amount is within the reconciliation tolerance. The Receipt Number matches the statement line Transaction Number. If the transaction type matches to correction statement lines: For reversal corrections, the statement line has the same transaction number, same amount, and opposite transaction type (for example, Miscellaneous Receipt and Miscellaneous Payment). For adjustment corrections, the statement line has the same transaction number, and has a transaction type of payment, receipt, miscellaneous payment, or miscellaneous receipt, and the net amount is within the reconciliation tolerance. Matching Criteria for Open Interface Transactions The Cash Management AutoReconciliation program matches open interface transactions if the transactions meet one of the following criteria: The Transaction Number matches the statement line Transaction Number, and the transaction amount is within the reconciliation tolerance. The transaction date and amount are the same as the bank statement line date and amount. If you use the Reconciliation Open Interface to reconcile Treasury settlements, however, you must choose date and amount as the matching criteria. Matching Criteria for General Ledger Journals The Cash Management AutoReconciliation program matches General Ledger journal transactions if the transactions meet the following criteria: The journal line is posted Oracle Cash Management User Guide

33 The journal line Accounting Flexfield matches the bank account s cash Accounting Flexfield. The journal line Description matches the statement line Transaction Number. See Also About Bank Statement Validation: page 3 20 Multi Currency Handling Cash Management handles foreign currency transactions during both automatic and manual bank reconciliation. The following table illustrates the way that Cash Management handles different multi currency situations. In these examples, the functional currency is euro. In this scenario... if the transaction currency is... and bank account currency is... then the exchange rate is... Domestic EUR EUR Not needed. International USD EUR Calculated by Cash Management if you do not provide it. Foreign USD USD Required. Foreign Translated USD JPY Not supported in Payables or Receivables. In order to calculate the exchange rate gains and losses resulting from foreign currency transactions in both the International and Foreign scenarios, the bank statement transaction line must include, in addition to Currency, at least one of the following types of exchange rate information: Original Amount Exchange Rate Exchange Rate Type and Exchange Rate Date Additionally, Cash Management uses the exchange rate information to match foreign currency transactions in a multi currency bank account. Overview 1 11