Topics:• New Bank Account Model
• Multi-Org Access Control (MOAC)
• Integration with SLA
• Bank Account Transfers
• Cash Pooling
• Other Features

Cash Management model is used to manage liquidity and control cash, some techniques like Cash pooling will help organizations use idle funds and reduce external borrowing which will help organizations use cash optimally. Some enhancements like Bank Accounts transfers are very useful features for those who deal with multiple/concentration accounts.

New Bank Account Model:
Banks are now taken into Trading Community Architecture (TCA) which will give several benefits when customers are using shared services models for disbursements and collections. Benefits from the new bank account module are:
• Internal Bank Accounts are defined and managed centrally and act as a single point of access for all other modules like payroll, payables, receivables, treasury etc.
• Bank Account access for each application is made explicit for security and internal control purposes.
• Each bank account is defined for Bank & Bank Branch combination which is defined in TCA
• A single Legal Entity is granter ownership for the Bank Account and user rights are provided for organizations.
• Since the bank account is at legal entity level reconciliation made easy as it is one account against multiple in previous models, reconciliation options are defined at bank account level.

Multi-Org Access Control (MOAC): Supports MOAC and users can work on multiple organizations from a single responsibility.

Sub-Ledger Accounting (SLA): Cash management is tightly integrated with SLA and all cash management accounting is handled using SLA.

Bank Account Transfers:Balances can be transferred between internal bank accounts manually or automatically using physical cash pools, this feature earlier supported from treasury is now supported in Cash Management.
However payment processing is handled using Oracle Payments and accounting using SLA.

Cash pooling:
Oracle Supports following cash pooling techniques:
a. Self Initiated Physical Cash Pools
b. Bank Initiated Physical Cash Pools or Zero Balance Accounts (ZBA)
c. Notional Cash Pools

Note: Cash pooling techniques which are supported earlier form Treasury are now supported form Cash Management; however cash pools spanning different legal entities are still supported from Treasury only.

Self-Initiated Cash Pool:
This type of cash pool is controlled by organization users. This includes defining rules to automatically determine when bank account transfers should be made and for what amount. Users can accept or overwrite system generated “Transfer Proposals”.

Bank-Initiated Cash Pool or Zero Balance Bank Accounts (ZBA):
This is also called as Zero Balance Accounts as no balances are left in the accounts at the end of the day as they are swept to concentration accounts.
Organizations can use Bank Service to automatically sweep all end of day balances to and from main concentration account. Oracle Cash Management automatically creates and reconciles all the related sweep transactions based on reported prior-day bank statement activity.

Notional Cash Pools:Organizations may utilize notional cash pool arrangements offered by banks that track not only individual account balances but also the net balance across all accounts.

This technique is common in some countries and does not require physical cash transfers to be made between accounts for concentration purposes.

Other Features:

Bank Statement Accounting: Users can create Matching Rules which are used to automatically create and reconcile transactions in Oracle Cash Management based on reported prior day bank statement lines. Matching Rules are defined based on Bank Accounts, Transaction Codes and Text Search Strings.

Reduces reconciliation issues associated with repetitive first notice items like bank fees or bank account interest. Transactions that were created are stored in Cash Management are available for reporting as well as for automatic reconciliation.

Support for New Balance Types: New Bank Account balance types supported for internal bank accounts (Ex: Ledger, Available, Value date, I day float, 2 day float, projected to date, MTD, YTD).

Interest Calculation: System allows the users to verify interest amounts charged or credited by their banks based on balance history and user-defined interest rate schedules.

Bank Account Signing Authority: Users can indicate single and joint signing limits for each bank account as well as signer group categories, effective dates, approval statuses and other relevant information.

Electronic copies of documents like Passport Photos, Signature files or Bank documents directly to signing authority records.

Using Oracle Workflow approval requests can be routed for signing authorities, or users can set status manually.

Cash Positioning Intra-Day Activities: Intra-Day bank statement activity can be included or excluded from Cash positioning.