Configuring the Oracle Cash Management System

Defining Bank Transaction Codes

1. Click on Setup->Bank Transaction Codes. The Bank Transactions Codes window opens, as shown below-

The Bank Transaction Codes Window

2. In the Bank Transaction Codes window, select View->Find. The Find Bank Account Window appears.
3. Enter the bank account number for which you want to define transaction codes.
4. Select Setup->Bank Transaction Codes on the main menu of the Find Bank Account Window.

• Type: Allows you to specify the type of transaction. You can select from the following transaction types:
  • Payment: Generated or recorded checks, payment batches, wire transfers, electronic funds transfer, and payroll checks.
  • Receipt: Received checks, remittance batches, direct debits, and bills of exchange.
  • Miscellaneous Payment: Payments that is not associated with any supplier's invoice.
  • Miscellaneous Receipts: Receipts that is not associated with any customer's invoice.
  • Stopped: Stopped payments that have been entered, generated, or cleared earlier.
  • Rejected: Receipts rejected for reasons other than insufficient funds.
  • Non Sufficient Fund (NSF): Receipts rejected by the bank because the relevant account had insufficient funds.

• Code: Allows you to specify the code that your bank uses for the selected transaction type.
• Description: Allows you to specify the description of the transaction.
• Effective Dates Start and End: Allows you to specify a date range during which the transaction code will remain active and usable. After the end date, the transaction code becomes ineffective.
• Transaction Source: Allows you to specify a receipt or a payment source for the transaction. From the list of values, you can choose Journal in order to reconcile statement items with the transaction code assigned to General Ledger (GL) journals. Alternatively, you can choose Payments or Receivables Receipts to reconcile statement items with transactions in Oracle Payables or Receivables.
• Matching Against: Allows you to specify the value that matches the Miscellaneous Receipt or Miscellaneous Payment transaction type. You can enter one of the following values:
  • Misc: Matches against miscellaneous transactions only.
  • Stmt: Identifies the Statement Line as a correcting entry.
  • Misc, Stmt: Matches against miscellaneous transactions. If no match is found, matches against statement lines.
  • Stmt, Misc: Matches against statement lines. If no match is found, matches against miscellaneous transactions.

• Correction Method: Allows you to specify the correction method that your bank uses. You can choose between Reversal and Adjustment or both. This field is applicable only if the Miscellaneous Receipts or Miscellaneous Payment transaction codes match against correction statement lines.
• Create check box: Allows you to create transactions for miscellaneous payments or receipts appearing in the bank statement when no transaction number is provided. If the Create option has been enabled, you need to specify the Receivables Activity type and the Payment Method for Miscellaneous Transactions created through Cash Management.

Defining System Parameters

1. Define the set of Books using Oracle GL.
2. Check whether the GL Set of Books Name profile option has been assigned the correct value.

The System Parameters Dialog Box

• Set of Books: Displays the value that represents the set of books in which cash management accounting transactions are recorded.
• Begin Date: Allows you to enter the date when the cash management transactions will begin. The cash management system will not display any transactions prior to this date.
• Show Cleared Transactions: Enables you to use cleared transactions for reconciliation. If you do not enable this option, only uncleared transactions will be available for reconciliation.
• Add Lines to Automatic Statements: Enables you to add lines manually to automatically loaded bank statements.
• Use Reconciliation Open Interface: Enables you to reconcile bank statement lines with transactions originating from external to Oracle Applications.
• Show Void Payments: Enables you to select voided payments for reconciliation.

• Matching Order: Allows you to define the Receivables and Payables options to determine how the AutoReconciliation program searches for transactions to match lines from the bank statement.
• Clear Status: Displays the status of the open interface transactions that have been cleared.
• Float Status: Displays the status of the open interface transactions that are available for reconciliation.
• Receivable Activity: Displays the difference between the amount cleared and the original amount for remittance batches. The value you define here also appears as the default value in the Miscellaneous Receipts window.
• Float Handling: The two options available are Ignore and Error. Your selection will specify how the system will handle the reconciliation of bank statement lines where the value date is later than the current date.
• AutoReconciliation Parameters (AP): The options on the AutoReconciliation tab enable you to set the parameters to control the working of the AutoReconciliation program.

• Tolerances: Enables you to enter tolerances for the AutoReconciliation program. For example, if you have entered the tolerance amount as $10 and the bank statement line amounts to $100, the AutoReconciliation program matches this bank statement line with a transaction of an amount ranging from $90 to $110. You can enter the tolerance in percentage and amount.
• Tolerance Differences: Allows you to configure the difference between the amount cleared by the bank and the actual transaction amount. The two tolerance differences that you can configure are AP and Foreign. AutoReconciliation Parameters option determines whether any difference between the amount cleared by the bank and the transaction amount is charged by Cash Management to the Bank Charges or Bank Errors account. The Foreign option controls how Cash Management handles inconsistencies resulting from exchange rate fluctuations.
• Archive/Purge: Allows you to purge the AutoReconciliation program of all information from bank statement interface tables after it has successfully transferred the information to bank statement tables. You can also set this option to Archive if you want the AutoReconciliation program to archive all the information in bank interface tables after it has successfully transferred the information to bank statement tables.
• Lines per Commit: Allows you to set the number of lines that AutoReconciliation will save at a time. You can also set the number of transaction rows the AutoReconciliation program locks at a given time.

Setting Up Oracle Payables and Oracle Receivables for Oracle Cash Management Integration

Integrating Cash Management with Oracle Payables

1. Define Set of Books from the Oracle General Ledger. You need to define the chart of accounts, functional currency, and the accounting calendar to create a Set of Books.
2. Choose a Primary Set of Books for your operating unit in a large company setup or for your installation in a single company environment.
3. Select Setup->Options->Payables in the Payment Option window to navigate to the Payment Accounting tab. To account for payments that you want to reconcile in cash management, enable either the When Payment is Issued or the When Payment Clears option.
4. Select the When Payment Clears option in the Account for Payment Region of the Payment Accounting tab.

Note

When you select the When Payment Clears option, Payables automatically selects the When Payment Clears option in the Account for Gain/Loss region of this tab. As a result, the Oracle Cash Management system accounts for the difference between the estimated functional currency payment amount and the actual amount recorded when the bank disbursed funds for payment.

5. To open your Payables accounting periods, select Accounting->Control Payables Periods. Configuring Oracle Receivables

1. Choose a Primary Set of Books when you set up Oracle Receivables.
2. Select Setup->Receipts->Receipt Classes in Oracle Receivables. Use the Receipt Classes window to define a Receipt Class for Miscellaneous Transactions with Creation Method = Manual and Remittance Method = No Remittance.
3. Select Setup->Receipts->Receivable Activities. In the Receivables Activities window that appears, define a Receivable Activity for Miscellaneous Transactions.
4. Define Receipt Sources to be assigned to receipts.

Integrating Oracle Cash Management with Oracle Payables and Oracle Receivables

1. Select Setup -> Banks on the main menu.Screenshot displays the Banks window:

The Banks Window

2. Select View->Find.
3. Select the bank and click OK.
4. Click the Bank Accounts button. The Bank Accounts window appears, as shown below-

The Bank Accounts Window

5. On the Bank Accounts tab, enter the Bank Account name.
6. Select Internal in the Account Use field.
7. On the GL Account Tab Enter the GL Account you want the system to use to account for the transactions reconciled in the GL Accounts tab.

Oracle Cash Management Functions

Bank Reconciliation

Bank Reconciliation Process

Note

You need to load the bank statement before you reconcile it. If your bank provides the statement in flat file format, you can use the Bank Statement Open Interface table to load the file into Oracle Cash Management. The Bank Statement Open Interface table allows Oracle Cash Management to communicate with an external system.

• The Bank Statement Headers Interface Table: Contains header-level information. The name of the table is CE_STATEMENT_HEADERS_INT_ALL. This table must contain exactly one record for each bank account within a bank statement.
• The Bank Statement Lines Interface Table: Contains transaction-level information from the bank statement. This table is named CE_STATEMENT_LINES_INTERFACE.

Automatic Reconciliation

1. AutoReconciliation: Reconciles any bank statement that has already been imported into Oracle Cash Management.
2. Bank Statement Import: Imports an electronic bank statement subsequent to loading the bank file using a SQL* Loader script.
3. Bank Statement Import and AutoReconciliation: Imports a bank statement file and reconciles it with bank accounts, consecutively.

1. Define the AutoReconciliation options by selecting Setup->System Parameters.

2. Submit the AutoReconciliation program by selecting Others->Programs->Run.Screenshot below shows the Submit a New Request Window:

Submit a New Request Window

3. Select the Single Request option and click OK.Screenshot shows the Submit Request window:

The Submit Request Window

4. Select the AutoReconciliation program in the Name field. The Parameters window appears.
5. In the Bank Branch Name field, type the name of the bank branch for the statements that you want to reconcile.
6. In the Bank Account Number field, type the account number for the statement that you want to reconcile.
7. To define the range of statements that you want to reconcile, type the start and end statement numbers in the Statement Number From and To fields.
8. To define the range of bank statement period, type the opening and closing dates of the bank statement in the Statement Date From and To fields.
9. In the GL Date field, type the default date for all GL entries generated by the AutoReconciliation program.
10. Select a Receivable Activity in the Receivable Activity field.
11. Select a Payment Method in the Payment Method field.
12. Specify how you want the AutoReconciliation program to handle any NSF or rejected receipts that are present in the bank statement in the NSF Handling field.
13. Click the OK button. The Submit Request window reappears.
14. Execute the program by selecting Submit. The Decision window appears.
15. Click No if you do not want to submit another request or select Yes to submit another concurrent request.
16. Select View->Requests from the top menu. The Find Requests window appears. Screenshot below shows the Find Requests window:

The Find Requests Window

17. Click the Find button. If concurrent requests have been executed, review the AutoReconciliation Execution Report for reconciliation errors. This report enables you to identify errors and take corrective action.
18. Review the Bank Statement Detail Report for reconciled and unreconciled statement lines.
19. Manually reconcile any unreconciled lines in the Reconcile Bank Statement Lines Window by selecting Bank Reconciliation->Bank Statements.
20. After manually reconciling the lines, run the AutoReconciliation program by selecting Tools->AutoReconciliation from the Top menu.

Manual Reconciliation

1. Import or manually enter the bank statement. If you do not use the Oracle Receivables Automatic Lockbox, and your bank statement includes direct deposits or bank transfers, create the related receipts manually in Receivables before you reconcile them in Cash Management.
2. Select Bank Reconciliation->Bank Statements from the main menu. The Find Bank Statements window appears.Screenshot shows the Find Bank Statements window:

The Find Bank Statements Window

3. Execute the query by selecting the Find button. The Reconcile Bank Statements window appearsScreenshot shows the Reconcile Bank Statements window:

The Reconcile Bank Statements Window

4. Select the bank statement you want to reconcile. To view the bank statement data, select the Review button. The Bank Statement window appears. Screenshot shows the Bank Statement window:

The Bank Statement Window

5. View the bank statement lines by selecting the Lines button.Screenshot shows the Bank Statement Lines window:

The Bank Statement Lines Window

6. Select the statement line that you want to reconcile and then click the Available button to search for the data or batch transactions that are available for reconciliation. The Find Transactions window appears. Screenshot shows the Find Transactions window:

The Find Transactions Window

7. Specify the search criteria and click the Find button.
8. Reconcile the available transactions that apply to the selected bank statement line. Similarly, reconcile the rest of the bank statement lines, one at a time.
9. Create miscellaneous transactions for bank statement transactions with no matching Payables, Receivables, or GL activity.
10. Create payments or receipts for bank statement transactions with no matching Payables or Receivables activity.
11. Reverse any NSF or rejected bank transactions.

Reviewing Reconciled Transactions

1. Open the Reconcile Bank Statements window. Navigation: Bank Reconciliation->Bank Statements. The Find Bank Statements window opens.
2. Click the Find button of Find Bank Statement window. The Reconcile Bank Statements window appears.
3. Select the appropriate bank statement and click the Review button. The Bank Statement window appears.
4. Select the Reconciled button. The Reconciled Transactions window appears.Screenshot shows the Reconciled Transaction window:

The Reconciled Transactions Window

5. Click the Next button to review the reconciled transactions for the second statement line.
6. Using the Transaction tab, review Original Currency, Amount, Bank Account Currency Amount, Amount Cleared, and the GL Date.
7. Using the Reference tab, review additional descriptive information including the remittance or payment Batch Name, Agent Name, and Deposit Number. For Miscellaneous Transactions, you can review the Reference Type, such as receipt, payment, remittance batch, or payment batch and number.
8. Select Previous or Next to review reconciled transactions for other statement lines.

Cash Forecasting

Creating Cash Forecast Templates

1. Open the Forecast Template window by selecting Cash Forecasting->Forecast Templates. Screenshot shows the Find Forecast Templates window:

The Find Forecast Templates Window

2. Click the New button to navigate to the Forecast Templates window. Screenshot shows the Forecast Templates window:

The Forecast Templates Window

3. In the Name field, type a name for your template.
4. In the Forecast By field, select the Days or the GL Periods option.
5. In the Overdue Transactions field, select Exclude to specify that you want to exclude open transactions that have a cash activity date before the forecast date. Alternatively, if you want to include the open transactions, select Include.

Note

Overdue transactions are collected into one forecast period and displayed in the Overdue column in the Cash Forecast amounts window and the Cash Forecast Report. If you select Include in the Overdue Transactions field, the Cutoff Period field is activated and you must enter a value in this field to determine the period for which you want to include the overdue transactions.

6. Select a transaction calendar in the Business Calendar field. A transaction calendar specifies your company's working days.

Note

If you are preparing a Cash Forecast for a project, enter a Start and an End date in the Projects Start and End fields. This will enable Oracle Cash Management to prepare a cash forecast for each project in that date range.

7. Click the Columns button. The Forecast Template Columns window opens, as shown below

The Forecast Template Columns Window

8. Type a number in the Column Number field. This must be an integer between 1 and 999. Define as many columns as your forecast needs. Save and close window.

Note

You can define up to 80 columns in a forecast template.

9. Click the Rows button. The Forecast template Rows window opens, as shown below

The Forecast Template Rows Window

10. Type a Row Number to specify the sequence of the Source Types. The values you enter here should range between 1 and 999.
11. Select a source type in the Source field. The source type specifies the source of cash outflow and cash inflow. Type the relevant selection criteria for the source type chosen.
12. Save and close the form.

Creating Cash Forecasts

1. Select Other –> Concurrent. The Find Requests window opens, as shown below-
   The Find Requests Window

2. Click the Submit a New Request button. The Submit a New Request window opens, as shown below-
   The Submit a New Request Window

3. Select Cash Forecasting by GL Periods or Cash Forecasting by Days in the Name field, depending on the template you want to use. The Parameters window appears, as shown below-

The Parameters Window

1. In the Parameters window:
   1. In the Template Name field, select the name of the template you created or any other template that you need to use to create the cash forecast.
   2. Type a name for the forecast in the Forecast Name field. The forecast will be created after the concurrent request is executed.
   3. Type the name of the GL Calendar in the Calendar Name field. You type the name of the GL calendar only when you submit a forecast by GL Period.
   4. Type a value in the Start period field. This date reflects the accounting period or the day to begin the forecast.
   5. Type the start and end numbers for the range of projects that you want to include in the forecast in the Start and End Project fields.
   6. Select the currency in which you want the forecast amounts to be displayed in the Forecast Currency field.
   7. Type the currency type for the sources in the forecast in the Source Currency Type field.
   8. Type the currency for source transactions in the Source Currency field.
   9. Type the exchange rate date and exchange rate type as defined in the Oracle GL in the Exchange Date and Exchange Type fields. You need to define these fields if the Forecast Currency and the Source Currency are different.
   10. In the Exchange Rate field, type user-defined when the exchange type is User.
   11. Type the minimum value of individual transactions to be included in the forecast in the Amount Threshold field.
   12. Select a value in the Row Number From/To field. This field provides a list of values to run a partial forecast for the sequential rows of the template that you are using.
   13. Select Yes in the Request by Row field if you want to submit a separate concurrent request for each row. This will result in the rows for the forecast being generated concurrently and is useful in cases where the forecast includes a large amount of data. Alternatively, select No.
   14. Click the OK button. The Parameters window closes and the Submit Request window reappears.

2. Click the Submit button to execute the concurrent request. The Decision window appears.
3. Record the Request ID number and click the No button. The Submit Request window closes and the Find Requests window appears.
4. Click the Find button. The Requests window appears.
5. Locate your request with the help of the Request ID number you noted in Step 5.
6. Review the Cash Forecast and Cash Forecast Execution reports. Then, select the appropriate report and click the View Output button to review the report online.