The diagram below provides an overview of the Cash Management process, from entering bank statements to posting transactions to your Oracle 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 checks cleared. You can enter bank statements manually or load electronic statements that you receive directly from your bank. (See: Entering Bank Statements Manually and Loading Bank Statement Open Interface)

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 to do your reconciliations:

• 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)

• Manual--This method requires you to manually match bank statement details with accounting 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)

During the reconciliation process you can create miscellaneous transactions for bank-originated entries, such as bank charges and interest. You can also manually create Oracle Payables payments or Oracle Receivables receipts.

Note: The automatic reconciliation process can be set up to create miscellaneous transactions automatically.

Clearing

You can clear payments in Oracle Payables and receipts in Oracle Receivables prior to reconciliation to maintain more up-to-date cash account balances. When you clear a transaction, you assign a cleared date and status to the transaction, and accounting entries for cash clearing are created. When you reconcile a transaction, the transaction is first cleared (if uncleared) and then matched to bank statements.

Review and Summarize Results

Once you have completed the reconciliation process, we recommend that you review your reconciliation results. You can do this by reviewing the reports that are printed automatically from the AutoReconciliation program. You can also print various other standard summary and reconciliation reports.

Post to Your General Ledger

Once you are satisfied that your reconciliation was completed correctly, you need to post any accounting transactions that were created during the reconciliation process. Reconciliation accounting entries are transferred from Oracle Payables and Oracle Receivables to your general ledger for posting.

---