Oracle Cash Management

Transcription

1 Oracle Cash Management User Guide Release 11i Part No. A December 2003

2 Oracle Cash Management User Guide, Release 11i Part No. A To reorder this book, use part number A80839_03. Copyright 1988, 2003, Oracle Corporation. All rights reserved. Primary Author: Janet Coshow Contributors: Amrita Mehrok, Frank Colligan, Kristin Penaskovic, Christina Ravaglia, Carolyn Jusuf, Kay Adams The Programs (which include both the software and documentation) contain proprietary information of Oracle Corporation; they are provided under a license agreement containing restrictions on use and disclosure and are also protected by copyright, patent and other intellectual property law. 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. Program Documentation is licensed for use solely to support the deployment of the Programs and not for any other purpose. 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. Oracle Corporation does not warrant that this document is 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, without the express written permission of Oracle Corporation. If the Programs are delivered to the US Government or anyone licensing or using the Programs on behalf of the US Government, the following notice is applicable: RESTRICTED RIGHTS NOTICE Programs delivered subject to the DOD FAR Supplement are commercial computer software and use, duplication and disclosure of the Programs, including documentation, shall be subject to the licensing restrictions set forth in the applicable Oracle license agreement. Otherwise, Programs delivered subject to the Federal Acquisition Regulations are restricted computer software and use, duplication, and disclosure of the Programs shall be subject to the restrictions 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 licensee s responsibility to take all appropriate fail safe, back up, redundancy and other measures to ensure the safe use of such applications if the Programs are used for such purposes, and Oracle disclaims 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 and Oracle7, Oracle8, Oracle8i, Oracle Discoverer, PL/SQL, and SQL*Plus are trademarks or registered trademarks of Oracle Corporation. Other names may be trademarks of their respective owners.

3 Contents Preface xi Accessibility of Code Examples in Documentation xiii 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 Oracle Payroll Reconciliation Oracle Treasury Reconciliation About Cash Forecasting Oracle Applications Integration with Cash Forecasting Contents iii

4 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 Installing External Cash Flow Open Interface Objects in Remote Databases External Cashflow Open Interface iv Oracle Cash Management User Guide

5 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 Contents v

6 Submit Automatic Reconciliation Window Reference 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 vi Oracle Cash Management User Guide

7 Chapter 5 Cash Forecasting Cash Forecasting Creating Cash Forecast Templates Cash Forecasting Source Transaction Dates Forecasting Overdue Transactions 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 Cash 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 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 Bank Account View Reference Source Transaction Details Page Reference Intra Day Activities and Net Cash Flow Detail Page Reference Available Liquidity Section Details Contents vii

8 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 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 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 viii Oracle Cash Management User Guide

9 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 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

10 x Oracle Cash Management User Guide

11 Preface Welcome to Release 11i of the Oracle Cash Management User Guide. This user guide includes the information you need to work with Cash Management effectively. It contains detailed information about the following: Overview and reference information Cash Management implementation suggestions Cash Management system setup Specific tasks you can accomplish using Cash Management How to use Cash Management windows Cash Management programs, reports, and listings 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 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. 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 Corporation is actively engaged with other market leader 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. Finding Out What s New From the expandable menu in the Cash Management HTML help window, choose the section that describes new features or what s new. This section includes: Information about any features that were not yet available when this user guide was printed. For example, if your system administrator has installed software from a mini pack as an upgrade, this document describes the new feature. Links to new features in the online help. This information is updated for each new version of Cash Management. In addition, you can find out about changes in this release of Cash Management by referring to About Oracle Cash Management in Financials Family Pack E, which is available on MetaLink, Oracle Support s Web Site. Preface xiii

14 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 Cash Management. If this guide refers you to other Oracle Applications documentation, use only the Release 11i versions of those guides unless we specify otherwise. Online Documentation All Oracle Applications documentation is available online (HTML and PDF). Note that the HTML documentation is translated into over twenty languages. The HTML version of this guide is optimized for onscreen reading, and you can use it to follow hypertext links for easy access to other HTML guides in the library. When you have an HTML window open, you can use the features on the left side of the window to navigate freely throughout all Oracle Applications documentation. You can use the Search feature to search by words or phrases. You can use the expandable menu to search for topics in the menu structure we provide. The Library option on the menu expands to show all Oracle Applications HTML documentation. You can view HTML help in the following ways: From an application window, use the help icon or the help menu to open a new Web browser and display help about that window. Use the documentation CD. Use a URL provided by your system administrator. The technical reference information is available as the etrm (electronic technical reference manual) on Oracle Support s Web site, MetaLink.. Refer to About Oracle Cash Management for patches that you have installed to learn about new documentation or documentation patches that you can download. The About document is available on MetaLink. xiv Oracle Cash Management User Guide

15 Related User Guides Cash Management shares data and setup information with other Oracle Applications products. Therefore, you may want to refer to other user guides when you set up and use Cash Management. You can read the guides online by choosing Library from the expandable menu on your HTML help window, by reading from the Oracle Applications Document Library CD included in your media pack, or by using a Web browser with a URL that your system administrator provides. If you require printed guides, you can purchase them from the Oracle store at User Guides Related to All Products Oracle Applications User Guide This guide explains how to navigate the system, enter data, and query information, and introduces other basic features of the GUI available with this release of Cash Management (and any other Oracle Applications product). You can also access this user guide online by choosing Getting Started and Using Oracle Applications from the Oracle Applications help system. Oracle Alert User Guide Use this guide to define periodic and event alerts that monitor the status of your Oracle Applications data. Oracle Applications Implementation Wizard User Guide If you are implementing more than one Oracle product, you can use the Oracle Applications Implementation Wizard to coordinate your setup activities. This guide describes how to use the wizard. Oracle Applications Developer s Guide This guide contains the coding standards followed by the Oracle Applications development staff. It describes the Oracle Application Object Library components needed to implement the Oracle Applications user interface described in the Oracle Applications User Interface Standards. It also provides information to help you build your Preface xv

16 custom Oracle Developer forms so that they integrate with Oracle Applications. Oracle Applications Flexfields Guide This guide provides flexfields planning, setup, and reference information for the Cash Management implementation team, as well as for users responsible for the ongoing maintenance of Oracle Applications product data. This guide also provides information on creating custom reports on flexfields data. Oracle Applications User Interface Standards 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 how to apply this UI to the design of an application built by using Oracle Forms. User Guides Related to This Product Cash Management shares data and setup information with other Oracle Applications products. Even if you have not installed them as separate products, your Cash Management application includes some forms and functionality from other Oracle Applications. Therefore, you may want to refer to other user guides when you set up and use Cash Management. 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. It 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. This manual also includes complete information on implementing Budgetary Control. Oracle Treasury User Guide This guide explains how to use Oracle Treasury to manage your financial market transactions and exposures. xvi Oracle Cash Management User Guide

17 Oracle Purchasing User Guide If you install Oracle Purchasing, refer to this user guide to read about entering and managing the purchase orders to which you match invoices. Oracle Receivables User Guide Use this manual to learn how to implement flexible address formats for different countries. You can use flexible address formats in the Suppliers, Banks, Invoices, and Payments windows. Oracle Receivables Tax Manual This manual provides everything you need to know about calculating tax within Oracle Receivables, Oracle Order Management, Oracle Sales, and Oracle Web Customers. It includes information about implementation procedures, setup forms and windows, the Oracle Receivables Tax calculation process, tax reports and listings, and open interfaces. Oracle Projects User Guide If you install Oracle Projects, use this user guide to learn how to enter expense reports in Projects that you import into Payables to create invoices. You can also use this manual to see how to create Project information in Projects which you can then record for an invoice or invoice distribution. 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. Country Specific Manuals Use these manuals to meet statutory requirements and common business practices in your country or region. They also describe additional features added to Cash Management to meet those requirements. Look for a user guide appropriate to your country; for example, see the Oracle Financials for the Czech Republic User Guide for more information about using this software in the Czech Republic. Preface xvii

18 Multiple Reporting Currencies in Oracle Applications If you use the Multiple Reporting Currencies feature to report and maintain accounting records in more than one currency, use this manual before implementing Cash Management. The manual details additional steps and setup considerations for implementing Cash Management with this feature. Multiple Organizations in Oracle Applications If you use the Oracle Applications Multiple Organization Support feature to use multiple sets of books for one Cash Management installation, use this guide to learn about setting up and using Cash Management with this feature. Web Applications Dictionary, Project Configurator, and Object Navigator User Guide Use this guide when you set up Oracle Internet Expenses or the procurement card feature. Oracle Property Manager User Guide This guide describes how Oracle Property Manager enables companies to manage their leased and owned properties. Tenants can set up scheduled payments for rent and other expenses, export payment items to Oracle Payables, and pay their suppliers. Landlords can set up scheduled billings, export billing items to Oracle Receivables, and track their customers accounts. Facilities managers can keep track of office space allocation and cost, using employee information from Oracle Human Resources. Lease administrators can abstract leases and track lease history. Tenants and landlords can abstract leases and manage payments and invoices Oracle Internet Expenses Implementation and Administration Guide This book explains in detail how to configure Oracle Internet Expenses and describes its integration with Oracle Payables and Oracle Projects. Oracle Business Intelligence System Implementation Guide This guide provides information about implementing Oracle Business Intelligence (BIS) in your environment. xviii Oracle Cash Management User Guide

19 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. Installation and System Administration Guides 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 an installation of Oracle Applications. This guide also introduces the concepts behind, and major issues, for Applications wide features such as Business Intelligence (BIS), languages and character sets, and self service applications. 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 it takes 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 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 in general and lists database upgrade and product specific upgrade tasks. You must be at either 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 Preface xix

20 Maintaining Oracle Applications Use this guide to help you run the various AD utilities, such as AutoInstall, AutoPatch, AD Administration, AD Controller, Relink, and others. It contains how to steps, screenshots, and other information that you need to run the AD utilities. Oracle Applications Product Update Notes Use this guide as a reference if you are responsible 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 and enhancements and changes made to database objects, profile options, and seed data for this interval. 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 processing. Electronic Technical Reference Manual The etrm on MetaLink, Oracle Support s Web site, contains database diagrams and a detailed description of database tables, forms, reports, and programs for Cash Management and related applications. This information helps you convert data from your existing applications, integrate Cash Management with non Oracle applications, and write custom reports for Cash Management. Oracle Workflow Guide This guide explains how to define new workflow business processes as well as customize existing Oracle Applications embedded workflow processes. You also use this guide to complete the setup steps necessary for any Oracle Applications product that includes workflow enabled processes. xx Oracle Cash Management User Guide

21 Training and Support Training We offer a complete set of training courses to help you and your staff master Oracle Applications. We can help you develop a training plan that provides thorough training for both your project team and your end users. We will work with you to organize courses appropriate to your job or area of responsibility. Training professionals can show you how to plan your training throughout the implementation process so that the right amount of information is delivered to key people when they need it the most. You can attend courses at any one of our many Educational Centers, or you can arrange for our trainers to teach at your facility. We also offer Net classes, where training is delivered over the Internet, and many multimedia based courses on CD. In addition, we can tailor standard courses or develop custom courses to meet your needs. Support From on site support to central support, our team of experienced professionals provides the help and information you need to keep 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 server, and your hardware and software environment. Do Not Use Database Tools to Modify Oracle Applications Data We STRONGLY RECOMMEND that you never use SQL*Plus, Oracle Data Browser, database triggers, or any other tool to modify Oracle Applications tables, unless we tell you to do so in our guides. Oracle provides powerful tools you can use to create, store, change, retrieve, and maintain information in an Oracle database. But if you 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 an Oracle Applications form can update many tables at once. But when you modify Oracle Applications data using anything Preface xxi

22 other than Oracle Applications forms, you might 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 forms to modify your data, Oracle Applications automatically checks that your changes are valid. Oracle Applications also keeps track of who changes information. But, 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 Corporation develops and markets an integrated line of software products for database management, applications development, decision support and office automation, as well as Oracle Applications. Oracle Applications provides the E Business Suite, a fully integrated suite of software modules for financial management, Internet procurement, business intelligence, supply chain management, manufacturing, project systems, human resources, and sales and service management. Oracle products are available for mainframes, minicomputers, personal computers, network computers, and personal digital assistants, enabling 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 application products, along with related consulting, education and support services, in over 145 countries around the world. Your Feedback Thank you for using Cash Management and this user guide. xxii Oracle Cash Management User Guide

23 We value your comments and feedback. This guide contains a Reader s Comment Form you can use to explain what you like or dislike about Cash Management or this user guide. Mail your comments to the following address or call us directly at (650) Oracle Applications Documentation Manager Oracle Corporation 500 Oracle Parkway Redwood Shores, CA U.S.A. Preface xxiii

24 xxiv Oracle Cash Management User Guide

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

26 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 33 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

27 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

28 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

29 Overview 1 5

30 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

31 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 25 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

32 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

33 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