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Oracle Cash Management User Guide
Release 12.1
Part Number E13483-04
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Reconciliation Setup

This chapter covers the following topics:

Reconciling Bank Statements Automatically

You can use the AutoReconciliation program to automatically reconcile any bank statement in Oracle Cash Management. There are three versions of the program:

You can run these programs from the Submit Request window, the Reconcile Bank Statements window, or the Bank Statement Interface window. You can also import and automatically reconcile a bank statement from the Bank Statement Loader program, by using the option of Load, Import and AutoReconciliation. See: Loading the Bank Statement Open Interface Tables

After you run the program, you can review the AutoReconciliation Execution Report to identify any reconciliation errors that need to be corrected. This report is produced automatically, or you can run it whenever needed. You can also review reconciliation errors online.

After you automatically reconcile a bank statement and correct any reconciliation errors, you can run the Bank Statement Detail Report or use the View Bank Statements window to review reconciled and unreconciled statement lines. If lines remained unreconciled, you can:

Once you have reviewed your reconciliation results, you can transfer the accounting entries to your general ledger from Oracle Payables, Oracle Receivables, and Oracle Cash Management. If you use Oracle General Ledger, you can reconcile you General Ledger cash account balance to your bank account balance by running the GL Reconciliation Report.

To reconcile a bank statement automatically:

  1. Define your Reconciliation options. See: About Bank Reconciliation and System Parameters.

    Note: If you do not use Oracle Receivables AutoLockbox, and your bank statement includes direct deposits or bank transfers, you must create the related receipts manually in Receivables before you can reconcile them automatically in Cash Management. See: Using AutoLockbox, Oracle Receivables User Guide and Running AutoLockbox, Oracle Receivables User Guide.

  2. Navigate to the Submit Request window.

    Note: Alternatively, you may submit the request directly from the Reconcile Bank Statements or Bank Statement Interface windows by selecting AutoReconciliation from the Oracle Applications Tools menu.

  3. Select the AutoReconciliation program.

  4. Enter the Bank Branch for the statements that you want to reconcile. This field is required.

  5. Enter the Bank Account Number for the statement that you want to reconcile. If you do not enter a bank account number, you reconcile statements for the entire bank branch.

  6. In the following fields, enter a statement number or select one from the list of values:

  7. Enter dates in the following fields:

  8. Select an Organization or leave blank to reconcile transactions from all organizations.

  9. Select a Receivable Activity and Payment Method to create Miscellaneous Receipts for differences that AutoReconciliation encounters when matching remittance batches or NSF transactions within tolerances.

  10. Specify how to handle any NSF or rejected receipts that are in your bank statement. Choose one of the following actions:

  11. Submit your request.

  12. When the concurrent request is finished, review the AutoReconciliation Execution Report for reconciliation errors. Also review the Bank Statement Detail Report, which shows reconciled and unreconciled statement lines.

  13. If any statement lines remained unreconciled, or you need to correct a reconciled line, use the Reconcile Bank Statement Lines window to manually reconcile those lines.

  14. Transfer the accounting transactions you created during reconciliation for Payables and Receivables to your General Ledger.

  15. Review the GL Reconciliation Report.

To submit the programs from the Reconcile Bank Statements window or the Bank Statement Interface window:

  1. Select AutoReconciliation from the Oracle Applications Tools menu. The Submit Automatic Reconciliation window appears.

  2. Select your Options. You may choose to Import, Reconcile Only, or Import and Reconcile.

  3. Optionally, change the default entries for Bank Account Number, Statement Number From, Statement Number To, Statement Date From, and Statement Date To fields.

  4. Select the GL Date, Organization (optional), Receivable Activity, Payment Method, and NSF Handling.

  5. Submit your request.

  6. When the concurrent request is finished, review the AutoReconciliation Execution Report for reconciliation errors. Also review the Bank Statement Detail Report, which shows reconciled and unreconciled statement lines.

  7. If any statement lines remained unreconciled, or you need to correct a reconciled line, use the Bank Statement Lines window to manually reconcile those lines.

Submit Automatic Reconciliation Window Reference

Options: When you access this window from the Reconcile Bank Statements window, the only available option is Reconcile Only. If you access this window from the Bank Statement Interface window, the only available options are: Import, and Import and Reconcile.

GL Date: The date that the transaction is posted to General Ledger. The default is the date that you run reconciliation.

Organization: The organization from which you would like to select transactions for reconciliation. You may leave this blank to reconcile transactions from all organizations to which you have access.

Receivable Activity: The Receivables activity type for any miscellaneous transactions that you created. It accounts for differences encountered when matching remittance batches or NSF transactions within tolerances.

Payment Method: The payment method for any miscellaneous transactions that you created. It accounts for differences encountered when matching remittance batches or NSF transactions within tolerances.

NSF Handling: Indicates how to handle any NSF or rejected receipts that are on your bank statement:

Related Topics

Submitting a Request

Reviewing Reconciliation Errors

Reviewing Reconciled Transactions

Reconciling Bank Statements Manually

About Bank Statement Validation

Multi-Currency Handling

Multi-Currency Matching

Importing Bank Statements

Recording Exceptions

Entering Reversals

Cash Management Reports

Setting Up Oracle Cash Management

Defining System Parameters

Matching Bank Statement Lines with Transactions

Entering Bank Statements Manually

Reconciling Sweep Transactions

You can load, import, and reconcile bank statements containing bank-initiated sweep lines.

Prior to running the AutoReconciliation program, you can automatically create and settle transactions in Oracle Treasury or Oracle Cash Management corresponding to the sweep statement lines by running the Sweep Transactions Generation program. This program searches for treasury or cash management bank account transfer transactions that match the details in the sweep statement lines and the corresponding cash pool. If a match is not found, the program creates and settles a transaction in Oracle Treasury or Oracle Cash Management. For more information, see: Cash Management Programs.

You can then run the AutoReconciliation program to reconcile the bank-initiated Sweep statement lines.

To reconcile sweep transactions automatically:

  1. Set up cash pools. For more information, see Creating Cash Pools in Cash Leveling.

  2. Enter bank transaction codes corresponding to the sweep transactions. For more information, see: Bank Transaction Codes.

  3. Create a bank statement mapping for sweep transactions by defining the BANK_ACCOUNT_TEXT field to match the free text field on your bank statement lines.

    Example: In the BAI2 bank file example below, a bank account sweep in transaction is identified by the text ZBA TRANSFER FROM: and a bank account sweep out transaction is identified by the text ZBA TRANSFER TO:.

    You can create a bank statement mapping in the Lines tab of the Bank Statement Mappings window, defining the BANK_ACCOUNT_TEXT field to match the free text field (Rec ID: 16, Position: -1). In this example, the format will be ZBA TRANSFER FROM: (~), ZBA TRANSFER TO: (~). The (~) designates the characters to pick up following the ZBA TRANSFER FROM: or ZBA TRANSFER TO: and store in the BANK_ACCOUNT_TEXT field.

    This bank account information is then used by the Sweep Transaction Generation program to search for transactions or to create new transactions in Oracle Treasury or Oracle Cash Management.

    Sample BAI2 Bank File with Sweep Transactions

    01,121000248,0060981,991105,0727,0727,80,1,2/

    02,0060981,121000248,1,991104,0000,USD,/

    03,4510001011,,,015,5000000,,,045,5000000,,,040,5000000,, 400,35789779,3,/

    88,100,35789779,1,,072,0,,,050,5000000,,/

    16,275,45592306,0,,,ZBA TRANSFER FROM: 4522020841

    16,575,547940,,,ZBA TRANSFER TO: 4091214650

    16,575,9432205,,,ZBA TRANSFER TO: 4091214668 49,163159116,8/

    98,23032892911,21,161/

    99,23032892911,1,163/

  4. Run the Bank Statement Loader program to populate the interface tables with the bank statement file. For more information, see: Importing Bank Statements.

  5. Run the Bank Statement Import program to transfer information from the interface tables to the bank statement tables. For more information, see: Importing Bank Statements.

  6. Run the Sweep Transactions Generation concurrent program.

  7. Run the AutoReconciliation program to reconcile the bank statement. For more information, see: Reconciling Bank Statements Automatically.

  8. You can manually reconcile a sweep bank statement line if the corresponding transaction is available in Oracle Treasury or Oracle Cash Management. For more information, see: Reconciling Bank Statements Manually.

  9. You can run the Unreconcile Bank Statement program to automatically unreconcile bank statement lines, including sweep in and sweep out transactions. The unreconciliation process will not delete any transactions that were generated by the Sweep Transactions Generation concurrent program.

To submit the Sweep Transactions Generation concurrent program:

  1. Select Sweep Transactions Generation program from the Submit Request window.

  2. Enter the following parameters:

  3. Submit your request.

  4. The concurrent program generates the Sweep Transactions Generation Execution Report, which lists the exceptions found during Sweep Transactions Generation program.

Reconciliation Tolerances

You can define reconciliation tolerances for the AutoReconciliation program. The program reconciles Payables payments, Receivables receipts, and Cash Management cashflows if they are within tolerances and automatically posts any amount differences. General Ledger journal entries are automatically reconciled in Cash Management only if the journal line amount and the bank statement line amount are the same. For Treasury settlements and external transactions in the Reconciliation Open Interface, tolerances are verified, but amount differences are not automatically accounted. As a security feature, tolerances are not allowed on payments and voided payments that are generated by Oracle Payroll.

You enter reconciliation tolerances as percentages and/or amounts. Such as, if you assume you havee defined the following tolerances:

Now assume the program encounters a statement line with an amount of $1,000. It first computes the tolerance percentage amount (10% of $1,000 = $100). The program then selects the smaller of the computed amount or the defined tolerance amount - here, the program selects $70. The program then attempts to match the statement line against a transaction in the range $930 to $1,070 ($1,000, plus or minus $70).

Posting Amount Differences Within Tolerances

If the difference between a Payables payment or Cash Management cashflow amount and the statement line amount is within defined tolerances, the AutoReconciliation program posts the difference to either the Bank Charges account or the Bank Errors account, depending on how you defined the Cash Management Tolerance Differences parameters.

If the difference between a receipt amount and the statement line amount is within defined tolerances, the program posts the difference to the Receivables Bank Charges account.

For matching remittance batches using reconciliation tolerances, you can choose to create a miscellaneous transaction for the difference between the remittance batch amount and the bank statement line. To select this option, you make an entry in the Receivables Activity parameter found on the Bank Account's Receivables Access Options.

The following table contains posting differences for payments and receipts:

Document Matched against: If within Tolerances:
Payment Batch 1. Reference
2. Payment Batch Name
Difference posted to Bank Charges or Bank Errors account
Payment 1. Payment Number
2. Invoice Number and Agent Bank Account
3. Invoice Number and Agent Name
Difference posted to Bank Charges or Bank Errors account.
Remittance Batch 1. Remittance Batch Deposit Number
2. Remittance Batch Name
Miscellaneous transaction created for amount of difference.
Receipt 1. Receipt Number
2. Invoice Number and Agent Bank Account
3. Invoice Number
Difference posted to Bank Charges account.

Related Topics

Setting Up Oracle Cash Management

Matching Bank Statement Lines with Transactions

System Parameters

Multi-Currency Matching

The AutoReconciliation program handles statement line matching to transactions differently, depending on the bank account currency.

Bank Account Currency is Ledger (International Scenario)

Cash Management compares the transaction ledger amount to the bank statement line amount. They must be equal or within the tolerance range.

The following table shows how Cash Management validates tolerances in the international scenario. The bank account currency is US dollars.

Receipt in Oracle System In Bank Statement
Receipt in Oracle System
Ledger currency = USD
Transaction amount = CAD 200
Transaction exchange rate = 0.75
Transaction in ledger currency amount = USD 150
Tolerance = USD 10
In Bank Statement
Statement line amount = USD 145
Is this a match?
Tolerance amount = USD 10
Statement line amount = USD 145
Yes, since |(145-150)| < 10
 

Bank Account Currency is Foreign (Foreign Scenario)

For foreign currency bank accounts:

If you complete the Foreign Currency Bank system parameters setup, Cash Management automatically selects exchange rates for foreign currency bank statement lines during automatic reconciliation. However, Cash Management does not select exchange rates for bank statement lines that have partial or complete exchange rate information.

The AutoReconciliation program does not update bank statement lines with the exchange rate it selects. To view the exchange rate information used to automatically reconcile a bank statement line, select the statement line in the Bank Statement Lines window and choose the Reconciled button. If matching fails, you need to manually reconcile the bank statement line using the Reconcile Bank Statements window.

Multi-Currency Clearing

Clearing takes place after matching, so any difference between the statement line amount and the original transaction amount is already verified to be within the specified tolerance limit.

Cash Management determines clearing amounts for the charges, errors, and foreign gain/loss accounts as necessary to clear the transaction.

Bank Account Currency is Ledger (International Scenario)

Cash Management checks the Foreign Tolerance Differences parameters (in the Bank Account Controls region of the Bank Account) to determine what to do with the difference between the cleared amount and the transaction amount. The options for Payables and Receivables transactions are as follows:

The options for Cash Management Cashflows are as follows:

Bank Account Currency is Foreign (Foreign Scenario)

Cash Management checks the Tolerance Differences parameter (in the Bank Account controls region of the Bank Account) to determine whether the difference is due to charges or errors.

How differences are handled in this case depends on the transaction source:

Example of Multi-Currency Clearing for International Scenario

These tables show how Cash Management clears discrepancies. In these examples the ledger currency is US dollars. The AP Tolerance Differences are Errors and the Tolerance Percent is 50.

The following table contains the bank account transaction information in Oracle Receivables and Oracle Payables:

Date Source Ref Description Expenditure Deposit
22-Jan A/R bid2002 Halifax Printworks
CAD 10,000 (Rate = 0.5)
  5,000.00
25-Jan A/P bid1015 Sutcliff International, Ltd.
GBP 10,000 (Rate = 1.5)
15,000.00  

The following table contains the bank statement received from the Bank and sorted by the User:

Date Type Ref Description Expenditure Deposit
26-Jan Receipt bid2002 Halifax Printworks
CAD 10,000 (Rate = 0.4)
Charge USD 40
  3,960.00
28-Jan Payment bid1015 Sutcliff International, Ltd.
GBP 10,000 (Rate = 1.6)
Charge USD 40
16,040.00  

After Reconciliation

The following table displays how Cash Management resolves the transaction and bank statement line differences for the above example (International Scenario):

System Parameter: Foreign Difference Handling Ref Amount Reconciled Charges Errors Curr Rate
Gain/Loss bid1015 16,040.00 40.00 0.00 GBP 1.6
Charges/Errors bid1015 16,040.00 40.00 1,000.00 GBP 1.5
No Action (unreconciled)            
Gain/Loss bid2002 3,960.00 40.00   CAD 0.6
Charges/Errors bid2002 3,960.00 1,040.00   CAD 0.5
No Action (unreconciled)            

About Value Dates

The value date of a payment or receipt is the date when the cash activity is realized in a bank account. Oracle Payables and Oracle Receivables maintain an Anticipated Value Date and an Actual Value Date. The Anticipated Value Date can be entered when the subledger transaction is created. The Actual Value Date is populated from the bank statement line value date during the reconciliation or clearing processes. The bank statement line value date is provided by the bank or entered manually.

The following example illustrates the difference between the transaction date and the value date on a bank statement line: A receipt is deposited into your account on December 1. The receipt clears (funds become available) on December 3. The transaction date is December 1 and the value date is December 3.

The relationship between certain bank statement and subledger dates is as follows:

Reviewing Reconciliation Errors

After you run the AutoReconciliation program, you can review any reconciliation errors online from the Bank Statement or Bank Statement Line window. You can review all reconciliation errors for a statement, or just those errors that occurred for a specific statement line.

Note: The Bank Statement window shows errors for both statements and individual lines. To review import validation errors, use the Bank Statement Interface window.

Prerequisite

To review reconciliation and validation errors:

  1. Navigate to the Find Bank Statements window.

  2. Enter your query criteria, or leave the criteria blank to query all existing statements.

  3. Choose Find to see the Reconcile Bank Statements folder window containing the statements that meet your query criteria.

  4. Select the statement whose errors you want to review, and choose Review.

  5. If you want to review statement line errors, choose Lines.

  6. Choose Errors. You see the Reconciliation Errors window, showing a list of all reconciliation errors for all statement lines, or the selected statement line if you are reviewing statement line errors. See the following chart for further explanation of any error.

You can correct any reconciliation errors in the bank statement and rerun AutoReconciliation, or reconcile the statement lines manually.

Bank Reconciliation Errors

The following table contains bank reconciliation error codes and explanations of those error codes.

Error Code Explanation
AP period not open or future The GL date is not in an open or future period in Oracle Payables.
AR period not open or future The GL date is not in an open or future period in Oracle Receivables.
Cannot find transactions to lock  
Charge amount exceeds tolerance The charge amount cannot be greater than the tolerance amount.
Currencies don't match The statement line currency is not the same as the Foreign currency bank account. Reconciliation is not allowed.
Duplicate BACS payment batches Duplicate BACS payment batches
Duplicate journal entries Oracle General Ledger has more than one matching journal entry line.
Duplicate NACHA payment batches Duplicate NACHA payment batches
Duplicate Open Interface transactions More than one Open Interface transaction number matches the bank statement transaction number.
Duplicate payment batches Oracle Payables has more than one matching payment batch.
Duplicate payments There is more than one matching payment in Oracle Payables. Please reconcile manually.
Duplicate payroll payments There is more than one matching payroll payment in Oracle Payroll.
Duplicate receipts Oracle Receivables has more than one matching receipt.
Duplicate remittance batches Oracle Receivables has more than one matching remittance batch in.
Duplicate statement lines There is more than one matching statement line.
EFT payment amount does not match The payment amount does not match the amount on the line.
Exchange rate date missing The statement line does not have an exchange rate date.
Exchange rate type missing The statement line does not have an exchange rate type.
Future payment not yet negotiable This future dated payment's status is "Issued". You can reconcile future dated payments only if the payment status is "Negotiable". The payment status can be updated to "Negotiable" in Payables after the maturity date.
Future value date You cannot reconcile a statement line that has a future value date.
Inconsistent currencies The statement line and the transaction currency are different.
Inconsistent exchange rates The statement line exchange rate and the GL daily rate for the exchange type and exchange rate date do not match.
Inconsistent transaction currencies within batch All transactions within a batch must be in same currency.
Line amount ledger currency not within the tolerance range The statement line amount in the ledger currency is not within the tolerance range.
Miscellaneous receipt currency doesn't match bank currency Miscellaneous receipts must have the same currency as the foreign bank account currency.
Missing exchange rate information This message appears for one of the following reasons: 1) The exchange type is User, and you have not provided both the exchange rate and the exchange rate date; 2) The bank currency differs from your ledger currency and you are creating a miscellaneous receipt; 3) You are creating a foreign currency miscellaneous receipt.
Missing matching criteria The statement line needs at least one of the following criteria to match, and all are missing: 1) transaction number; 2) invoice number and agent name; 3) invoice number and agent bank account.
No document sequence defined Document sequence is not set up for the receipt/payment method.
No matching BACS payment batches No matching BACS payment batches
No matching journal entries Oracle General Ledger has no journal entry line that matches the bank statement transaction number.
No matching NACHA payment batches No matching NACHA payment batches
No matching Open Interface transactions The Open Interface has no transaction number that matches the bank statement transaction number.
No matching payment Oracle Payables has no payment number that matches the bank transaction number.
No matching payment batch Oracle Payables has no payment batch number that matches the bank statement transaction number.
No matching payment for the invoice number and the agent bank account Oracle Payables has no matching payment for the invoice number and the agent bank account.
No matching payment for the invoice number and the agent name Oracle Payables has no matching payment for the invoice number and the agent name.
No matching payroll payments Oracle payroll has no payroll payment number that matches the bank statement transaction number and amount.
No matching receipt Oracle Receivables has no receipt number that matches the bank transaction number.
No matching receipt for the invoice number and the agent bank account Oracle Receivables has no receipts that match the invoice number and the agent bank account number.
No matching receipt for the invoice number and the agent name Oracles Receivables has no receipts that match the invoice number and the agent name.
No matching remittance batch Oracle Receivables has no remittance batch number that matches the bank statement transaction number.
No matching statement line A matching statement line cannot be found.
No partial reconciliation for EFT payments. You must unreconcile all Payroll transactions that are reconciled to the statement line.
No receivables activity or payment method for tolerance receipt Autoreconciliation could not create a miscellaneous receipt for the tolerance amount for this NSF line because at least one of the following parameters were not entered at program submission: receivables activity, payment method.
Note: AP reconciliation accounting not enabled You can reconcile this payment, and Payables will update the payment status to Reconciled but Unaccounted. However, note that the Oracle Payables option "Account for Payment When Payment Clears" is not enabled. Therefore Payables accounts for the payments and gain/loss only at payment issue time, and does not account for bank charges, bank errors, or gain/loss at payment clearing time.
Payment method for the bank account is invalid The payment method for the bank account is invalid.
Receipt already reconciled The receipt has already been reconciled to statement line.
Receipt is not reversed The receipt history shows that this receipt has not been reversed. The statement line has a transaction code identifying it as NSF.
Receipt not remitted The receipt history shows that this receipt has not been remitted to the bank.
Receipt reversed The receipt history shows that this receipt has been reversed. The statement line has a transaction code identifying it as a receipt.
Reconciliation Open Interface not enabled Please enable "Use Reconciliation Open Interface" in the Bank Account Controls region of the Bank Account.
Statement line amount is not within the tolerance range The statement line amount is not within the tolerance range.
Stop initiated You have initiated a stop on the payment in Oracle Payables. You can match to a stop initiated payment only if the transaction code is "Stopped". However, this transaction line code is "Payment".
Stopped statement line The payment has not been voided or stop initiated. However, the statement line is "Stopped". The statement line can be matched to a payment only if the payment has been voided or stop initiated.
The statement line is currently in use. Please try again later. The statement line is currently in use. Please try again later.
The Cleared Date for this payment is earlier than the Transaction Date. This is a warning to let you know the Cleared Date for this payment is earlier than the Transaction Date.
The transaction is currently in use. Please try again later. The transaction is currently in use. Please try again later.
Undefined exchange rate No exchange rate is defined in General Ledger for this combination of exchange date and exchange type.
Voided The payment is voided in Oracle Payables. You can match to a voided payment only if the transaction code is "Stopped". However, this transaction line code is "Payment".
Voided (Payroll) The payroll payment is voided in Oracle Payroll. You can match a statement line to this payment only if the transactions code is "Stopped". However, the transaction code is "Payment".

Reconciling Bank Statements Manually

In Cash Management you can reconcile a bank statement manually as well as automatically. You can use the manual method to reconcile any bank statement, whether imported or entered manually. In addition, you can create new bank statement lines as you reconcile transactions, as well as update the reconciliation information for a previously manually or automatically reconciled statement.

When you use manual reconciliation, you reconcile each bank statement line with available transactions. You can search for Payroll payments, Receivables receipts, Payables payments, Cash Management Cashflows, miscellaneous transactions, GL journal entries, open interface transactions, and statement lines that meet specific criteria, and reconcile the statement line against them. If the bank statement belongs to a bank account shared by Oracle Treasury and Oracle Cash Management, you can search for Treasury settlements using the Reconciliation Open Interface. You can search for transactions based on customer or supplier, batch name, or remittance number, as well as ranges for transaction numbers, transaction date, transaction amount, and maturity date. You can search for journal entries based on Period Name, Journal Entry Name, Document Number, or Line Number.

As you reconcile a statement manually, you may need to create transactions to account for differences between the sum of the reconciled transaction and the line amount. For example, you can create a miscellaneous transaction to account for bank charges or interest. You can also create Payables payments and Receivables receipts from Cash Management. To account for amount differences for Treasury settlements, you need to create exposure transactions in Oracle Treasury.

Recalculating Amount Differences

When manually reconciling, you can automatically default the amount difference between the statement line amount and the transaction amount to the Charges and Errors field based on how the Tolerance Differences parameters are set.

For Payables payments or payment batches, and Cash Management Cashflows:

For Receivables receipts or remittance batches:

To manually reconcile a previously-entered bank statement:

  1. Import or manually enter the statement information.

    Note: If you don't use Oracle Receivables Automatic Lockbox, and your bank statement includes direct deposits or bank transfers, you must create the related receipts manually in Receivables before you can reconcile them in Cash Management. See: Using AutoLockbox, Oracle Receivables User Guide and Running AutoLockbox, Oracle Receivables User Guide.

  2. Navigate to the Find Bank Statements window.

  3. Enter the query criteria for the statement you want to reconcile, or leave the criteria blank to query all existing statements.

  4. Choose Find to see the Reconcile Bank Statements window containing the statements that meet your query criteria.

    Note: You can open custom folders that display statement information in a custom format if you or your organization has defined any. See: Customizing the Presentation of Data, Oracle Applications User's Guide.

  5. Select the statement you want to reconcile, and choose Review. Cash Management displays the Bank Statement window, with the header information for the account you queried, including Bank Name, Bank Branch, statement Date, bank Currency, Document Number, and Statement Number. You can update any of the header information except for the bank information and the Currency. If you use automatic document sequence numbers, you cannot change the Document Number either.

    The GL date defaults to the bank statement date. You can update it, or override it on the individual payment or receipt transaction.

  6. Choose Lines to see the Bank Statement Lines window.

  7. Select the statement line that you want to reconcile.

  8. Choose Available to search for detail or batch transactions that are available for reconciliation.

  9. Enter your search criteria in the Find Transactions window.

  10. Select the available detail and batch transactions that apply to the current bank statement line.

  11. (Optional) Choose the Recalculate button.

  12. Reconcile the available detail or batch transactions.

  13. Reconcile other statement lines.

  14. (Optional) Create miscellaneous transactions for bank statement transactions with no matching Payables, Receivables, or General Ledger activity.

    Note: Miscellaneous payments are actually handled as negative receipts by Cash Management. So, to create miscellaneous payments, you must have Oracle Receivables installed and set up.

  15. (Optional) Create payments or receipts for bank statement transactions with no matching Payables or Receivables activity.

  16. Reverse any NSF or rejected bank transactions.

  17. Optionally, when you have reconciled all the bank statement lines, mark your bank statement as complete.

  18. Save your work.

  19. You can review the results of reconciliation in the following reports:

  20. Transfer the accounting transactions you created during reconciliation for Payables, Receivables, and Cash Management to your General Ledger.

  21. Review the GL Reconciliation Report.

Related Topics

Creating Reconciled Bank Statement Lines

Finding Available Detail and Batch Transactions for Reconciliation

Reconciling Available Transactions and Batches

Changing the Reconciliation Status

Using Attachments

Creating Payments and Receipts Transactions

Creating Miscellaneous Transactions

Recording Exceptions

Entering Reversals

Manually Clearing and Unclearing Receipts and Payments

Marking a Bank Statement as Complete

Entering Bank Statements Manually

Overview of Setting Up

About Value Dates

Customizing the Presentation of Data, Oracle Applications User's Guide

Creating Reconciled Bank Statement Lines

Cash Management lets you create new bank statement lines when reconciling available transactions. This is useful if you want to reconcile without entering statement line information first.

Note: For imported statements, this feature is only available if the Allow Adding Lines to Imported Bank Statements option has been set in the System Parameters window.

Prerequisites

To create a new bank statement line from reconciled transactions:

  1. Navigate to the Find Bank Statements window.

  2. Enter the query criteria for the statement you want to reconcile, or leave the criteria blank to query all existing statements.

  3. Choose Find to see the Reconcile Bank Statements window containing the statements that meet your query criteria.

    Note: You can open custom folders that display statement information in a custom format if you or your organization has defined any. See: Customizing the Presentation of Data, Oracle Applications User's Guide.

  4. Select the statement you want to reconcile, and choose Review. Optionally, choose New to enter a new bank statement.

  5. If you are entering a new bank statement, enter the bank statement header information. If you select an existing bank statement, Cash Management displays the corresponding bank information.

  6. Choose Available to search for detail or batch transactions that are available for reconciliation.

  7. Enter your search criteria in the Find Transactions window, or leave the criteria blank to search for all available transactions.

  8. Choose Find.

  9. Select the detail or batch transactions that apply to the bank statement line you want to create.

  10. Choose reconcile. Cash Management creates a new bank statement line with an Amount and Type that match the reconciled transaction(s) for that line.

Related Topics

Reconciling Bank Statements Manually

Finding Available Detail and Batch Transactions for Reconciliation

Reconciling Available Transactions and Batches

Using Attachments

Creating Payments and Receipts Transactions

Creating Miscellaneous Transactions

Recording Exceptions

Entering Reversals

Manually Clearing and Unclearing Receipts and Payments

Entering Bank Statements Manually

Setting Up Oracle Cash Management

Customizing the Presentation of Data, Oracle Applications User's Guide

Finding Available Detail and Batch Transactions for Reconciliation

Use the Find Transactions window to locate detail or batch transactions that are available for reconciliation. If you have General Ledger installed, you can also search for journal entries.

For foreign currency bank accounts, only transactions in the bank account currency are available for reconciliation.

Note: From the Find Transactions window, you can use Clear to erase the current search criteria, or Cancel to exit the window.

To find available detail transactions:

  1. Navigate to the Find Bank Statements window.

  2. Select a bank statement, then choose Review. Optionally, choose New and enter a new bank statement header.

  3. Choose Available from the Bank Statement window, or from the Bank Statement Lines window. The Find Transactions window appears.

  4. Choose Detail from the Detail/Batch/Open region, then select one or more types to find detail transactions that match your criteria. You may select to view Payroll or Payroll EFT, AR Receipt, AP Payment, Cash Management Cashflow, Miscellaneous transactions, Journal, and Statement Line. The Statement Line option is applicable only to statement lines with Miscellaneous Payment or Miscellaneous Receipt transaction types that can match against statement lines.

  5. (Optional) Refine or focus your search further by selecting one of the following tabbed regions:

  6. Choose Find to find all transactions that match your search criteria, or choose Find and Mark to find and automatically mark any matching transactions for reconciliation.

To find available batches:

  1. Navigate to the Find Bank Statements window.

  2. Select a bank statement, then choose Review. Optionally, choose New and enter a new bank statement header.

  3. Choose Available from the Bank Statement window, or from the Bank Statement Lines window. The Find Transactions window appears.

  4. Choose Batch from the Detail/Batch/Open region, then select Remittance and/or Payment to find batches that match your criteria.

  5. (Optional) Refine or focus your search further by selecting the Transaction tabbed region. You can enter transaction Dates, Amounts, Batch Names, Remittance Numbers, or the Currency Code to search for. You can also enter sort criteria, which determines how the resulting transactions are displayed in the Available Transactions window.

    Note: You cannot enter search criteria for the Agent, Receipt, or Journal tabbed regions.

  6. Choose Find to find all batches that match your search criteria, or choose Find and Mark to find and automatically mark, for reconciliation, the transactions within any matching batches.

To find available Treasury settlements or external transactions in the Reconciliation Open Interface:

  1. Navigate to the Find Bank Statements window.

  2. Select a bank statement, then choose Review. Optionally, choose New and enter a new bank statement header.

  3. Choose Available from the Bank Statement window, or from the Bank Statement Lines window. The Find Transactions window appears.

  4. Choose Open Interface from the Detail/Batch/Open region, then select Receipts and/or Payments to find open interface transactions that match your criteria.

    The Open Interface option appears only if you have checked the Use Reconciliation Open Interface check box in the System Parameters window.

  5. (Optional) Refine or focus your search further by selecting the Transaction tabbed region. You can enter Transaction Dates, Amounts, Batch Names, Remittance Numbers, or the Currency Code to search for. You can also enter sort criteria, which determines how the resulting transactions are displayed in the Available Transactions window.

    Note: You cannot enter search criteria for the Miscellaneous or Journal tabbed regions.

  6. Choose Find to find all open interface transactions that match your search criteria, or choose Find and Mark to find and automatically mark matching transactions for reconciliation.

Related Topics

Reconciling Available Transactions and Batches

Entering Bank Statements Manually

Reconciling Bank Statements Manually

Creating Reconciled Bank Statement Lines

Reviewing Reconciled Transactions

Changing the Reconciliation Status

Using Attachments

Creating Payments and Receipts Transactions

Creating Miscellaneous Transactions

Recording Exceptions

Entering Reversals

Reconciling Corrections and Adjustments to Bank Errors

Manually Clearing and Unclearing Receipts and Payments

Reconciling Available Transactions and Batches

After you locate detail or batch transactions that are available for reconciliation, you must mark the specific items you want to reconcile.

To reconcile an available detail transaction:

  1. Find the available detail transaction you want to reconcile.

    See: Finding Available Detail and Batch Transactions for Reconciliation.

  2. Review the transaction information shown on the Available Transactions window:

  3. Mark the transaction or journal entry you want to reconcile by checking the box to the left of the item's information.

  4. (Optional) Choose the Recalculate button.

    Note: If you navigated to the Find Transactions window from the Bank Statement window, and did not select a statement line, you will not see the Recalculate button.

  5. Choose Reconcile to reconcile the selected items against the current statement line.

    Note: If you navigated to the Find Transactions window from the Bank Statement window, and did not select a statement line, choosing Reconcile creates a new, reconciled bank statement line.

    Cash Management shows the Amount Reconciled and the Amount Remaining to be reconciled for the current bank statement line.

  6. Choose Previous or Next to move to another statement line without returning to the Bank Statement Lines window. Cash Management updates the Amount Reconciled and the Amount Remaining as you change statement lines.

  7. When you are finished, navigate to the Bank Statement Lines window to review the bank statement lines with the reconciliation information.

    After reconciliation, the amount reconciled for the bank statement line should be the same as the entered amount, and the line Amount Reconciled Status will be Reconciled.

Available Transactions Window Reference

Account: Bank account associated with the batch.

Type: The type of transaction, such as a payment or receipt.

Number: The transaction number.

Status: The status of the transaction.

Maturity Date: The maturity or due date of the transaction.

Transaction Region

Original - Currency: The transaction currency.

Original Currency - Amount: The amount of the transaction, in the entered currency.

Account Currency - Amount: The amount of the transaction, in the bank account currency.

Account Currency - Amount Cleared: The amount cleared, in the bank account currency.

Cleared Date: The date the transaction cleared the bank.

GL Date: The date that the transaction posts to the General Ledger. The default is the statement date.

Date: The transaction date.

Exchange Region

Date: The date associated with the exchange rate that was used.

Type: The exchange rate type (as defined in Oracle General Ledger) used for this transaction. If the exchange rate type is User, then you can update the exchange rate.

Rate: The exchange rate specified by the bank for this transaction. If the bank account currency and the transaction currency are related fixed-rate currencies (such as euro and a National Currency Unit), then the system will display EMU Fixed, and you cannot update this value. You can enter a value here only if the rate type is User.

Account Currency - Charges: The amount of any bank charges associated with the transaction, in the bank account currency.

Account Currency - Errors: The amount of any bank errors associated with the transaction, in the bank account currency.

Reference Region

Batch Name: The name of the batch for the transaction.

Agent Name: The customer or supplier associated with the transaction.

Cashflow/Deposit Number: The cashflow, bank deposit or remittance number.

Type: For miscellaneous transactions only, the reference type (receipt, payment, remittance batch, or payment batch).

Number: For miscellaneous transactions only, the reference number.

Buttons

Recalculate: Recalculates the Charges, Errors and Amount Cleared fields. Cash Management defaults the amount differences between the statement line amount and the transaction amount based on the system parameters setup.

Reconcile: Reconciles the transactions.

Reconciling an Available Remittance or Payment Batch

  1. Find the available remittance or payment batch you want to reconcile.

    See: Finding Available Detail and Batch Transactions for Reconciliation.

    Note: For remittance batches, excludes reversed receipts from the batch total, and these receipts are not reconciled when you reconcile the batch.

  2. Review the batch information.

  3. Mark the batch you want to reconcile by checking the box to the left of the batch information.

  4. (Optional) Choose the Recalculate button.

    Note: If you navigated to the Find Transactions window from the Bank Statement window, and did not select a statement line, you will not see the Recalculate button.

  5. Choose Reconcile to reconcile the selected batches against the current statement line.

    Note: If you navigated to the Find Transactions window from the Bank Statement window, and did not select a statement line, choosing Reconcile creates a new, reconciled bank statement line.

    Cash Management shows the Amount Reconciled and the Amount Remaining to be reconciled for the current bank statement line.

  6. Choose Previous or Next to move to another statement line without returning to the Bank Statement Lines window. Cash Management updates the Amount Reconciled and the Amount Remaining as you change statement lines.

  7. When you are finished, navigate to the Bank Statement Lines window to review the bank statement lines with the reconciliation information.

    After reconciliation, the amount reconciled for the bank statement line should be the same as the entered amount, and the line Amount Reconciled Status is updated to Reconciled.

    Note: Cash Management handles differences in batch amounts in the following manner:

    Receivables: A miscellaneous receipt is created for the batch amount difference and booked using the account defined in the Receivable Activity field of the System Parameters window. You will be prompted to enter a payment method.

    Payables: The batch amount difference is included with the first payment in a batch.

Available Batches Window Reference

Account: The bank account associated with the payment/remittance batch.

Batch Name: The name of the payment/remittance batch.

Transaction Region

Original - Currency: The transaction currency.

Original - Total: The total amount, in the original currency of the transaction.

Account Currency - Total: The total amount, in the bank account currency.

Account Currency - Amount Cleared: The amount cleared, in the currency of the bank account.

Cleared Date: The date that the transaction cleared the bank. The default is the statement line date / statement date.

GL Date: The date that the transaction posts to the General Ledger. The default is the statement date.

Exchange Region

Date: The date associated with the exchange rate that was used.

Type: The exchange rate type (as defined in Oracle General Ledger) used for this transaction.

Rate: The exchange rate specified by the bank for this transaction. If the bank account currency and the transaction currency are related fixed-rate currencies (such as euro and a National Currency Unit), then the system will display EMU Fixed.

Account Currency - Charges: The amount of any bank charges associated with the transaction, in the bank account currency.

Account Currency - Errors: The amount of any bank errors associated with the transaction, in the bank account currency.

Type: The type of transactions in the batch, either payments or remittances.

Date: The date of the payment/remittance batch.

Cashflow/Deposit Number: The cashflow number, bank deposit, or remittance number.

Buttons

Recalculate: Recalculates the Charges, Errors and Amount Cleared fields. Cash Management defaults the amount differences between the statement line amount and the transaction amount based on the system parameters setup.

Reconcile: Reconciles the transactions.

Related Topics

Finding Available Detail and Batch Transactions for Reconciliation

Reconciling Bank Statements Manually

Creating Reconciled Bank Statement Lines

Reviewing Reconciled Transactions

Changing the Reconciliation Status

Using Attachments

Creating Payments and Receipts Transactions

Creating Miscellaneous Transactions

Recording Exceptions

Entering Reversals

Manually Clearing and Unclearing Receipts and Payments

Reviewing Reconciled Transactions

After reconciling transactions, you can review your work in the Reconciled Transactions window. For each transaction you see information about the transaction Type (receipt, payment or miscellaneous), Number, Status, Date, and Maturity Date.

To review reconciled transactions for a bank statement:

  1. Navigate to the Reconcile Bank Statements folder window.

    Note: You can open custom folders that display statement information in a custom format if you or your organization has defined any. See: Customizing the Presentation of Data, Oracle Applications User's Guide.

  2. Select a bank statement, then choose Review.

  3. Choose Reconciled.

    You see the Reconciled Transactions window with the reconciled transactions for the first statement line.

  4. In the Transaction tabbed region, review the Original Currency and Amount, the bank Account Currency Amount and Amount cleared, and the GL Date.

  5. In the Exchange tabbed region, review the Exchange Date, Type, and Rate. The window also shows the bank Account Currency Charges and Errors amounts.

  6. In the Reference tabbed region, review additional descriptive information, including the remittance or payment Batch Name, Agent Name (customer or supplier), Deposit Number (receipts), Cashflow Number, and, for miscellaneous transactions, the Reference Type (receipt, payment, remittance batch, payment batch) and Number.

  7. Choose Previous or Next to review reconciled transactions for other statement lines.

To review reconciled transactions for a specific line:

  1. Navigate to the Reconcile Bank Statements window.

  2. Select a bank statement, then choose Review.

  3. Choose Lines.

  4. Select the statement line that you want to review.

  5. Choose Reconciled.

    You see the Reconciled Transactions window with the reconciled transactions for the selected statement line.

  6. Choose Previous or Next to review reconciled transactions for other statement lines.

Reconciliation Status, Receipt Status, and Payment Status

Cash Management maintains a Reconciled or Unreconciled status for each bank statement line. This status is displayed in Cash Management windows and reports, such as the Bank Statement Lines window. This status does not indicate the status of the system transaction.

In addition to the status of the bank statement line, Cash Management also displays the status of the system transaction. The status of a transaction is assigned by the source application.

Reconciled Transactions Window Reference

Account: The account number.

Type: The type of transaction.

Number: The transaction number.

Status: The status of the transaction.

Maturity Date: The maturity date for future-dated transactions.

Transaction Region

Original - Currency: The transaction currency.

Original - Amount: The transaction amount, in the transaction currency.

Account Currency - Amount: The transaction amount, in the bank account currency.

Account Currency - Amount Cleared: The amount cleared, in the bank account currency.

Cleared Date: The date the transaction cleared the bank.

GL Date: The date that the transaction is posted to the General Ledger. The default is the bank statement date.

Date: The transaction date.

Exchange Region

Exchange Date: The date associated with the exchange rate that was used.

Type: The exchange rate type (as defined in Oracle General Ledger) that was used for the transaction.

Rate: The exchange rate specified by the bank for this transaction.

Account Currency - Charges: The amount of any bank charges associated with the transaction.

Account Currency - Errors: The amount of any bank errors associated with the transaction.

Reference Region

Batch Name: The remittance or payment batch name.

Agent Name: The customer or supplier name.

Cashflow/Deposit Number: The cashflow, bank deposit, or remittance number.

Reference Type: For miscellaneous transactions only, the reference type (receipt, payment, remittance batch, or payment batch).

Number: For miscellaneous transactions only, the reference number.

Related Topics

Reconciling Bank Statements Manually

Changing the Reconciliation Status

Using Attachments

Creating Payments and Receipts Transactions

Creating Miscellaneous Transactions

Recording Exceptions

Entering Reversals

Manually Clearing and Unclearing Receipts and Payments

Reviewing Reconciliation Errors

Customizing the Presentation of Data, Oracle Applications User's Guide

Changing the Reconciliation Status

You can unreconcile any transaction that you have previously reconciled. You can unreconcile a specific transaction that applies to a bank statement line, or you can unreconcile all transactions that you have reconciled against a statement.

When you unreconcile transactions, Cash Management changes the Reconciled Status of the statement line. The unreconciled transactions are once again available for reconciliation.

Prerequisites

To unreconcile transactions for statement lines:

  1. Navigate to the Reconcile Bank Statements window.

  2. Select a bank statement, then choose Review.

  3. Choose Lines.

  4. Select the statement line whose transactions you want to unreconcile, then choose Reconciled.

  5. Select the transactions you want to unreconcile, by checking the box to the left of each transaction.

  6. Choose Unreconcile.

    When unreconciling EFT payment statement lines, all transactions reconciled to a statement line need to be unreconciled. You cannot partially unreconcile a Payroll EFT payment statement line.

To unreconcile transactions for a statement:

  1. Navigate to the Reconcile Bank Statements window.

  2. Select a bank statement, then choose Review.

  3. Choose Reconcile.

  4. Select the transactions you want to unreconcile.

  5. Choose Unreconcile.

    When unreconciling EFT payment statement lines, all transactions reconciled to a statement line need to be unreconciled. You cannot partially unreconcile a Payroll EFT payment statement line.

To unreconcile all transactions for a bank statement:

  1. Navigate to the Reconcile Bank Statements window.

  2. Select Unreconcile All from the Tools menu.

  3. Choose the Submit button in the window that opens.

To submit the Unreconcile Bank Statement program:

Submit the Unreconcile Bank Statement Program in the Submit Request window. The program has three parameters: Bank Account, Statement Number, and Line Number. To view the results of the Unreconcile Bank Statement program, navigate to the Bank Statement Lines window. See: Submitting Requests.

Related Topics

Manually Clearing and Unclearing Receipts and Payments

Reconciling Bank Statements Manually

Reviewing Reconciled Transactions

Recording Exceptions

Entering Reversals

Using Attachments

You can attach text, images, or OLE objects, such as spreadsheets and word-processing documents, to your bank statements and statement lines. This feature is useful for illustrating or clarifying information about your bank statements and the related reconciliations.

You can attach, delete, modify, or review attachments for:

Bank Statements from the Bank Statement window. From the View Bank Statements window you can only review bank statement attachments.

Bank Statement Lines from the Bank Statement Lines window. From the View Statement Lines window, you can only review bank statement line attachments.

Note: There is a Indicate Attachments system profile option, which must be set to Yes to view the attachments indicator. See: Profile Options in Oracle Application Object Library, Oracle Applications System Administrator's Guide - Maintenance

Creating Payments and Receipts Transactions

You can create Payables payments or Receivables receipts while you are manually reconciling a bank statement in Cash Management. This feature makes it easy to add new payments or receipts that were not entered previously in Payables or Receivables, but which have cleared the bank. You can then reconcile the transactions immediately after you create them.

Prerequisites

To create payments or receipts:

  1. Navigate to the Bank Statement Lines window.

  2. Select the statement line for which you want to create a payment or receipt.

  3. Choose Create.

  4. From the list of values, choose:

  5. Reconcile the transaction you have just created.

Related Topics

Reconciling Bank Statements Manually

Creating Miscellaneous Transactions

Finding Available Transactions, Batches, and Journal Entries for Reconciliation

Reconciling Available Transactions, Batches, and Journal Entries

Creating Miscellaneous Transactions

Create miscellaneous transactions to reflect banking activity, such as bank charges.

When you create a miscellaneous payment, it is actually recorded as a negative receipt. When you reconcile that miscellaneous payment, which is actually a negative receipt, it is reconciled to a payment bank statement line with a positive amount.

Prerequisites

To create a miscellaneous transaction for a previously-entered line:

  1. Navigate to the Find Bank Statements window.

  2. Enter the query criteria, or leave the criteria blank to query all existing statements.

  3. Choose Find to see the Reconcile Bank Statements folder window containing the statements that meet your query criteria.

    Note: You can modify the Reconcile Bank Statements folder window to customize your query capabilities on statements you have entered. Refer to the Oracle Applications User's Guide for more information on modifying and saving folders.

  4. Select the statement you want to update, then choose Review.

  5. Choose Lines.

  6. Select the bank statement line to which the miscellaneous transaction applies.

  7. Choose Create.

  8. Choose Miscellaneous for the transaction you want to create. The Miscellaneous window appears.

  9. Choose the Receivables Activity that describes the transaction you are creating.

  10. Enter the Receipt Number and Date, Currency, and payment Method. The default value for Activity is specified in the System Parameters window. The default value for the date is the bank statement date. The default currency is the bank account statement currency. The default for the receipt number is the bank statement line transaction number. If the bank statement line transaction number isn't available, then the default for the receipt number will be a combination of the statement number and the line number.

  11. Enter the transaction Amount. The amount defaults to the statement line's remaining amount.

    Note: For a receipt, enter a positive amount. For a payment enter a negative amount. If your receipt includes tax, enter the pretax amount.

  12. Enter the GL Date. The default date is the bank statement date.

  13. The value for Tax Code defaults from the Receivable Activities window. Your accounting method and the AR:Allow Tax Code Override profile option control whether or not you can update the defaulted tax code.

  14. Choose Reference from the poplist and enter the reference Type and Deposit Date. You can also enter a reference Number.

  15. Choose Comment from the tabbed region to enter optional Paid From information and Comment text.

    The miscellaneous transaction's Actual Value Date is populated from the bank statement line Value Date. You can override this date.

    Note: If you post this transaction to General Ledger, the Comment is the default journal line description.

  16. If the statement line is a foreign currency transaction, choose Exchange from the poplist to enter the Exchange Date, Type, and Rate. The Bank Currency Amount is calculated from the rate and amount.

  17. Choose Create to create the miscellaneous transaction. Cash Management will ask you if you want the receipt to be automatically reconciled against the current statement line. Select Yes to do so.

    Note: If you select No, you will need to reconcile the new transaction to a bank statement line later. See Reconciling Bank Statements Manually.

Miscellaneous Receipts Window Reference

Account: The name of the account associated with the receipt.

Bank Name: The name of the bank.

Currency: The currency of the bank account.

Statement Date: The date on the bank statement.

Activity: The Oracle Receivables activity that describes the transaction that you are creating. The default is specified on the System Parameters window.

Receipt Number: The receipt number.

Transaction Tabbed Region

Date: The date of the receipt. The default is the bank statement line date.

Curr: The currency of the receipt. The default is the bank account currency.

Method: The payment method.

Amount: The amount of the receipt. The default is the remaining amount of the statement line. For a receipt, enter a positive amount. For a payment, enter a negative amount. If your receipt includes tax, enter the pretax amount.

GL Date: The date that the receipt posts to General Ledger. The default is the bank statement date.

Tax Code: The value for Tax Code defaults from the Receivable Activities window. Your accounting method and the AR:Allow Tax Code Override profile option control whether or not you can update the defaulted tax code.

Exchange Tabbed Region

Date: The date associated with the exchange rate that was used.

Type: The exchange rate type (as defined in Oracle general Ledger) that was used for the transaction.

Rate: The exchange rate specified by the bank for this transaction.

Bank Currency Amount: The amount of the receipt in the currency of the bank account.

Reference Tabbed Region

Type: For miscellaneous transactions only, the reference type (receipt, payment, remittance batch, or payment batch).

Number: For miscellaneous transactions only, the reference number.

Document Number: The document number used for sequential numbering.

Deposit Date: User-defined date.

Comment Tabbed Region

Value Date: The value date.

Paid From: The source of miscellaneous transactions.

Comments: Enter any comments for your reference.

Related Topics

Reconciling Bank Statements Automatically

Reconciling Bank Statements Manually

Finding Available Transactions and Batches for Reconciliation

Reconciling Available Transactions and Batches

Oracle Receivables Reconciliation Accounting

Creating Payments and Receipts Transactions

Customizing the Presentation of Data in a Folder, Oracle Applications User Guide

Setting Up Oracle Cash Management

System Parameters

Recording Exceptions

A bank statement can contain information about NSF (non-sufficient funds) and rejected receipts, stopped payments, direct deposits or debits, and transactions created outside Oracle Applications. The bank statement may also contain errors that cannot be reconciled against any transactions.

To record NSF or rejected receipts when using AutoReconciliation:

When you run the AutoReconciliation program, you define the NSF Handling method:

To handle NSF or rejected receipts manually:

Note: Receipts that have been reversed in Receivables with a Reversal Category of Reverse Payment are not considered transactions available for reconciliation. Receipts reversed with this Reversal Category are due to User Error and should not be available for reconciliation.

  1. Reverse the receipt manually. See: Entering Reversals.

  2. Reconcile the reversed receipt to the NSF or rejected receipt statement line.

    Note: If you have two statement lines for an NSF or rejected receipt (one for the original receipt and one for the reversal), you can reconcile the original receipt and the reversal in the order that you prefer.

To record a stopped payment:

  1. Void the payment in Payables or Oracle Payroll.

  2. Reconcile the "stopped" payment statement line to the voided payment.

To record a direct debit from a supplier:

If the bank statement contains information about a direct debit that you have not entered:

  1. Create a payment in Payables for the appropriate invoices.

  2. Match the payment against the bank statement line.

To record a direct deposit or wire transfer:

If you enter your bank statements into Cash Management manually, enter the receipts for direct deposits and wire transfers in Receivables manually. After saving the receipt, you can then match it against the related Cash Management statement line.

If you import your bank statement information to Cash Management from an electronic bank file, you can use the same bank file with the Receivables AutoLockbox program to automatically create receipts for direct deposits and wire transfers. See your Oracle Receivables User's Guide for more information about using AutoLockbox.

To record a bank error:

  1. Navigate to the Find Bank Statements window.

  2. Enter the query criteria, or leave the criteria blank to query all existing statements.

  3. Choose Find to see the Reconcile Bank Statements folder window containing the statements that meet your query criteria.

  4. Select a statement and choose Review.

  5. Choose Lines.

  6. Select the bank error line.

  7. Choose Mark.

  8. Select Error to mark the line as a bank error.

    You do not need to reconcile lines marked as Error, and you can continue to reconcile payments or receipts for the remaining lines. To reconcile error lines to correcting statement lines, see Reconciling Corrections and Adjustments to Bank Errors.

To record transactions from external documents:

  1. Navigate to the Find Bank Statements window.

  2. Enter the query criteria, or leave the criteria blank to query all existing statements.

  3. Choose Find to see the Reconcile Bank Statements folder window containing the statements that meet your query criteria.

  4. Select a statement and choose Review.

  5. Choose Lines.

  6. Select the external document line.

  7. Choose Mark.

  8. Select External to mark the line as originating outside Oracle Applications. A line marked as External is considered reconciled. To reconcile lines with external sources, see Reconciliation Open Interface.

Related Topics

Reconciling Bank Statements Manually

Reviewing Reconciled Transactions

Creating Payments and Receipts Transactions

Creating Miscellaneous Transactions

Entering Reversals

Reconciling Corrections and Adjustments to Bank Errors

Manually Clearing and Unclearing Receipts and Payments

Cash Management Reports

Setting Up Oracle Cash Management

Bank Statements

Oracle Payables Reconciliation Accounting

Oracle Receivables Reconciliation Accounting

Reconciliation Open Interface

Using AutoLockbox, Oracle Receivables User Guide

Entering Reversals

In Cash Management you can reverse receipt transactions to account for NSF and rejected receipts. There are two ways to reverse receipts. You can create a Standard reversal or you can create a debit memo reversal for the full amount of the receipt.

For detailed information on receipt reversals see: Reversing Receipts, Oracle Receivables User Guide.

To reverse a receipt:

  1. Navigate to the Bank Statement window.

  2. Choose Reversals. The Find Reversals window appears.

  3. Select Receipt from the Transaction Type region.

  4. Query a receipt or leave the window blank to query all receipts. The Find Reversals window contains many options for querying a receipt. You can enter values for receipt Number, Amount, Currency, and Date. You can also search for receipts based on the Payment Method, Status, Account Number, and Account Currency Amount. Finally, you can also enter Agent information to further narrow your search for a specific customer Name and Number.

    Tip: Many of the query fields also have associated lists from which you can select a value. Choose the List of Values button from the Oracle Applications toolbar to see the list.

  5. Choose Find. The Reversals window appears.

  6. Review the transaction information shown in the window.

  7. Mark the receipt to be reversed, by checking the box to the left of the receipt information.

  8. In the Comment tabbed region, you can:

  9. Choose Reverse Receipt to generate the reversing transaction.

  10. Reconcile the reversed receipt to the NSF or rejected receipt statement line.

To create a debit memo reversal:

  1. Navigate to the Reversals window.

  2. In the Debit Memo tabbed region, select the check box to the left of the receipt you want to reverse.

  3. Select the Debit Memo check box.

  4. Choose the transaction type from the list of values. Cash Management automatically enters the account number after you select the transaction type.

  5. If you are using manual document numbering, enter a unique Document Number for this reversal, else the system assigns a number when you choose the Reverse Receipt button.

  6. Choose the Reverse Receipt button.

Reversals Window Reference

Type: The type of transaction.

Number: The transaction number.

Maturity Date: The maturity date for future-dated transactions.

Status: The status of the receipt.

Transaction Region

Original - Currency: The transaction currency.

Original - Amount: The transaction amount, in the transaction currency.

Account Currency - Amount: The transaction amount, in the bank account currency.

Account Currency - Amount Cleared: The amount cleared, in the bank account currency.

Transaction Date: The transaction date.

Value Date: The date when the cash activity is recognized in the bank account.

GL Date: The date that the receipt was posted to General Ledger. The default is the bank statement date.

Date: The transaction date.

Reference Region

Batch Name: The name of the batch associated with the transaction.

Agent Name: The name of the customer or supplier associated with the transaction.

Deposit Number: The bank deposit or remittance number.

Payment Method: The method of payment.

Comment Region

Category: The reversal category.

Reason: The reason for the reversal.

Comments: Comments.

Bank Region

Account Number: The number of the bank account that is associated with the transaction.

Currency: The currency of the bank account that is associated with the transaction.

Name: The bank branch name.

Statement Number: The statement number.

Debit Memo

Type: The type is always receipt. You cannot reverse miscellaneous receipts.

Number: Receipt number.

Debit Memo Reversal: Select when you want to create a debit memo reversal.

Type: Debit transaction type for this reversal. You can only enter a debit memo transaction type for which the Tax Calculation is set to No.

Account: Account associated with debit memo transaction type.

Document Number: Document number assigned when you choose Reverse, unless you are using manual numbering. If you are using manual numbering, then enter a unique number, else the system assigns a number.

Related Topics

Manually Clearing and Unclearing Receipts and Payments

Reconciling Bank Statements Manually

Reviewing Reconciled Transactions

Recording Exceptions

Oracle Payables Reconciliation Accounting

Oracle Receivables Reconciliation Accounting

Reconciling Corrections and Adjustments to Bank Errors

Banks sometimes make mistakes by depositing or withdrawing incorrect amounts to bank accounts. These bank errors show up on bank statements, along with the corrections and adjustments to those errors. The errors, corrections, and adjustments need to be reconciled correctly to give you an audit trail of reconciliation steps, and to effectively support the Oracle Payables' Positive Pay feature by allowing reconciliation of the error and correction statement lines.

Banks resolve errors using two methods: Reversal and Adjustment. Typically, the bank enters error corrections and adjustments as miscellaneous transactions, and often, they use the same bank transaction codes you set up for miscellaneous receipts or payments to identify the statement lines that are generated for error corrections. These two cases are described in this section, using the following example:

A check was generated for $100.00, but the bank recorded this payment as $10.00 by mistake. On your bank statement, you will see an entry of $10.00 payment.

The following table contains an example of a bank error:

Trx Number Line Number Amount Remarks
27 10 $10.00 Error (should be $100.00)

Reversal Method: The bank reverses the whole error transaction amount so that the error entry and the reversal entry net out to zero. Then, the bank makes another transaction entry for the correct transaction amount. In this example, a reversal entry of $10.00- is created to offset the original error entry, and a new correction entry is created of $100.00.

The following table contains an example of the reversal method:

Trx Number Line Number Amount Remarks
27 10 $10.00 Error
27 20 $10.00- Reversal Entry
27 30 $100.00 New Correction Entry

With the reversal method, the error and correction statement lines are match to one another. The correct transaction entry (line 30 above) is then matched to the actual transaction.

Adjustment Method: The bank simply creates a new transaction entry to make up for the difference between the original transaction amount and the error entry. In this example, the bank generates a new adjustment entry of $90.00, which is the difference between the original error amount of $10.00 and the correct amount of $100.00.

The following table contains an example of the adjustment method:

Trx Number Line Number Amount Remarks
27 10 $10.00 Error
27 20 $90.00 Adjustment Entry

Regardless of which method the bank and you choose to use, and of whether you reconcile automatically or manually, Cash Management allows you to match these statement lines correctly and to provide the information on how the statement lines are reconciled to give you a good audit trail.

AutoReconciliation Matching

The AutoReconciliation program can match to a payment, receipt, miscellaneous payment, or miscellaneous receipt line. The program handles both reversal and adjustment methods in the following ways:

Note: If you don't have the transaction number, then Cash Management will use the invoice and the agent bank account number to match.

If the error statement line is already reconciled to a transaction due to the amount difference between the transaction and statement line falling within the tolerance amount, you must first unreconcile the error statement line before the AutoReconciliation program will reconcile it with the correction statement line.

Manual Reconciliation Matching

If you are reconciling bank statements manually, the Reconcile Bank Statements window retrieves all available statement lines and transactions that match your selection criteria. Then you can decide how you want to reconcile the correction entry.

In the reversal method example above, you reconcile line 20 with line 10. In the adjustment method example, you reconcile line 20 with the original transaction and line 10.

If you have already reconciled the error statement line to a transaction, you must first unreconcile the error statement line before attempting to reconcile it with the correction entry.

Sometimes, a bank uses one correction entry to correct multiple error statement lines. You can manually reconcile between multiple statement lines.

The following table contains an example of the reversal method:

Trx Number Line Number Transaction Type Amount Remarks
27 10 Payment $100.00 Error
27 20 Misc. Receipt $10.00 First Correction Entry (Error)
27 30 Misc. Receipt $90.00 Second Correction Entry

In this example, line 30 uses the reversal method to correct errors made in lines 10 and 20. It may be that line 20 was supposed to correct line 10, but it turns out to be another error. In this case, you should go to either line 20 or line 30 and reconcile the other two statement lines to the miscellaneous receipt line selected.

Related Topics

Reconciling Bank Statements Automatically

Reconciliation Tolerances

Reconciling Bank Statements Manually

Overview of Setting Up

Bank Transaction Codes

Manually Clearing and Unclearing

You can choose to manually clear payments, receipts, miscellaneous transactions, open interface transactions, and cash management cashflows associated with Bank Account Transfers without first reconciling them. You can also undo the cleared status of a cleared payment, receipt, or open interface transaction.

Note: You cannot clear the status of a payment from Oracle Payroll, a journal entry in Oracle General Ledger, or a settlement from Oracle Treasury.

To manually clear detail transactions:

  1. Navigate to the Find Transactions window.

  2. Choose Detail from the Detail/Open Interface region.

  3. Select one or more of the following types of detail transactions that are available for clearing:

  4. Select a bank account.

  5. (Optional) Enter any additional search criteria for finding available transactions.

  6. Choose Find. The Clear Transactions window appears.

  7. Review the available transactions.

  8. (Optional) Choose the Default Dates button to select a date of your choice to be used as a default date for the Cleared Date, Value Date, and GL Date.

  9. Mark each transaction that you want to clear by checking the box to the left of the transaction.

  10. (Optional) Update the Amount Cleared, Cleared Date, Value Date, and GL Date. Enter any additional information, such as charges.

  11. Choose the Clear Transaction button to clear the selected transactions.

To manually clear open interface transactions:

  1. Navigate to the Find Transactions window.

  2. Choose Open Interface from the Detail/Open Interface region.

  3. Select one or more of the following types of open interface transactions that are available for clearing:

  4. Select a bank account.

  5. (Optional) Enter any additional search criteria for finding available transactions.

  6. Choose Find. The Clear Transactions window appears.

  7. Review the available transactions.

  8. (Optional) Choose the Default Dates button to select a date of your choice to be used as a default date for the Cleared Date, Value Date, and GL Date.

  9. Mark each transaction that you want to clear by checking the box to the left of the transaction.

  10. (Optional) Update the Amount Cleared, Cleared Date, Value Date, and GL Date. Enter any additional information, such as charges.

  11. Choose the Clear Transaction button to clear the selected transactions.

Clear Transactions Window Reference

Account Name: The name of the bank account.

Account Number: The bank account number.

Currency Code: The currency of the bank account.

Bank Name: The name of the bank.

Branch Name: The name of the bank branch.

Total Count: The total count of transactions selected for clearing.

Total Amount Cleared: The total amount of the transactions selected for clearing.

Type: The type of the transaction, such as payment or receipt.

Number: The transaction number.

Status: The status of the transaction.

Maturity Date: The maturity date for future-dated transactions.

Transaction Region

Original - Currency: The transaction currency.

Original - Amount: The transaction amount, in the transaction currency.

Account Currency - Amount: The transaction amount, in the bank account currency.

Account Currency - Amount Cleared: The amount cleared, in the bank account currency.

Cleared Date: The date the transaction cleared the bank.

Value Date: The date when the cash activity date is recognized in the bank account. This date is important for interest calculations on the bank account. The statement line value date can be provided by the bank or entered manually. This date is used to populate the Actual Value Date in Oracle Payables and Oracle Receivables.

GL Date: The date that the payment or receipt posts to the general ledger. If you do not choose the Default Dates button, the default is the system date, if the Payables/Receivables period is open. If the period is closed and in the future, the date defaults to the first date of the latest open period. If the period is closed and not in the future, it defaults to the last date of the latest open period.

Date: The date used to determine the currency exchange rate.

Exchange Region

Type: The exchange rate type (as defined in Oracle General Ledger) used for this transaction.

Rate: The exchange rate specified by the bank for this transaction.

Account Currency - Charges: The amount of any bank charges associated with the transaction.

Account Currency - Errors: The amount of any bank errors associated with the transaction.

Reference Region

Batch Name: The name of the batch.

Agent Name: The customer or supplier associated with the transaction.

Cashflow/Deposit Number: The cashflow, bank deposit, or remittance number.

Type: For miscellaneous transactions only, the reference type (receipt, payment, remittance batch, or payment batch).

Number: For miscellaneous transactions only, the reference number.

Default Dates Window Reference

Cleared Date: The date that the transaction clears the bank. The default is the system date.

Value Date: The date when the cash activity is recognized in the bank account. The default is the system date.

GL Date: The date that the payment or receipt posts to the general ledger. The default is the system date, if the Payables/Receivables period is open. If the period is closed and in the future, the date defaults to the first date of the latest open period. If the period is closed and not in the future, it defaults to the last date of the latest open period.

Unclearing Payments and Receipts

To undo clearing on a payment, receipt, cashflow or open interface transaction:

  1. Navigate to the Find Transactions window.

  2. Select Detail or Open Interface from the Detail/Open Interface region.

  3. Select AR Receipt, AP Payment, or Cash Management Cashflow depending on the transaction whose cleared status you want to undo.

  4. (Optional) Enter any search criteria for receipt or payment Organization, Number, Amount, Currency, and Date. You can also search for receipts and payments based on the Payment Method, Account Number, Batch Name, Status, and Account Currency Amount. Additionally, for detail transactions, you can enter Agent Name or Number to further narrow your search for a specific customer or supplier, and for cash management cashflows you can enter the Agent Bank Account. .

  5. Choose Find. The Unclear Transactions window appears, displaying a list of all transactions that match your search criteria.

  6. Review the transaction information.

  7. Mark each transaction you want to unclear by checking the box to the left of the transaction.

  8. Choose the Unclear Transaction button to unclear the selected transactions.

Unclear Transactions Window Reference

Type: The transaction type.

Number: The transaction number.

Status: The status of the transaction.

Maturity Date: The maturity date for future-dated transactions.

Transaction Region

Original - Currency: The transaction currency.

Original - Amount: The transaction amount, in the transaction currency.

Account Currency - Amount: The transaction amount, in the bank account currency.

Account Currency - Amount Cleared: The amount cleared, in the bank account currency.

Cleared Date: The date the transaction cleared the bank.

Value Date: The date when the cash activity is recognized in the bank account.

GL Date: The date that the payment or receipt posts to the general ledger. The default is the system date, if the Payables/Receivables period is open. If the period is closed and in the future, the date defaults to the first date of the latest open period. If the period is closed and not in the future, it defaults to the last date of the latest open period.

Date: The transaction date.

Reference Tabbed Region

Batch Name: The name of the batch.

Agent Name: The name of the customer or supplier associated with the transaction.

Cashflow/Deposit Number: The cashflow, bank deposit, or remittance number.

Payment Method: The payment method.

Bank Tabbed Region

Account Number: The number of the bank account.

Currency: The currency of the bank account.

Name: The bank branch name.

Statement Number: The statement number.

Related Topics

Entering Reversals

Reconciling Bank Statements Manually

Reviewing Reconciled Transactions

Recording Exceptions

Oracle Payables Reconciliation Accounting

Oracle Receivables Reconciliation Accounting

Marking a Bank Statement as Complete

You can freeze a bank statement in Cash Management by marking it as complete. Marking a bank statement as complete disables certain Cash Management features and prevents you from making any changes to the statement or statement lines until you specifically unmark the completed bank statement.

You can view a statement from the View Bank Statements window to see that the statement is complete.

Tip: You might want to freeze a bank statement after completing the reconciliation process. However, you can mark or unmark the statement as complete at any time.

To mark a bank statement as complete:

  1. Navigate to the Find Bank Statements window.

  2. Enter the query criteria for the statement you want to mark as complete, or leave the criteria blank to query all existing statements.

  3. Choose Find to see the Reconcile Bank Statements folder window.

  4. Select the statement you want to complete, then choose Review.

  5. In the Bank Statement window, check the Complete check box.

To unmark a completed bank statement:

  1. Navigate to the Bank Statement window, as above.

  2. Uncheck the Complete check box.

Related Topics

Reconciling Bank Statements Manually

Entering Bank Statements Manually

Reconciling Bank Statements Automatically

Viewing Bank Statements

Viewing Available Transactions

Transferring Bank Reconciliation Transactions to Your General Ledger

You need to transfer the accounting transactions you created during reconciliation for Payables and Receivables to your general ledger interface tables. You cannot transfer these transactions directly from Cash Management. Instead, transfer them from Payables and/or Receivables, depending on the transaction type. For example, use Receivables to transfer any miscellaneous receipts entries generated during your Cash Management reconciliation. Then, follow your normal posting procedure.

Note: When you reconcile bank statement lines to journal entries in General Ledger, no reconciliation accounting entries are created. Transferring to General Ledger is only required for entries created in Payables and Receivables.

Note: Cash Management does not provide reconciliation accounting information to Payroll.

Oracle General Ledger

If you use General Ledger, you need to submit the Journal Import program after you transfer your reconciliation accounting transactions from Payables or Receivables. This creates journal entries based on the reconciliation transactions. Once you run Journal Import, you need to post your journals in General Ledger.

Related Topics

Oracle Payables Reconciliation Accounting

Oracle Receivables Reconciliation Accounting

Cash Management Reports

Setting Up Oracle Cash Management

Posting Journals Batches, Oracle General Ledger User Guide

How Using Cash Management Affects Your Closing Process

If you use Cash Management with your other Oracle applications, you should consider changing your closing processes to ensure that:

Specifically, we recommend the following steps.

If you use Oracle General Ledger:

  1. Reconcile all your bank statements.

  2. Transfer all transactions from Payables and Receivables to your General Ledger interface tables.

  3. Run Journal Import in General Ledger.

  4. Post journals in General Ledger.

  5. Run the GL Reconciliation Report from Cash Management for each bank account. This report compares the statement balance you specify to the General Ledger ending balances.

  6. Review the report for errors.

  7. If there are errors in the report, correct them in Cash Management, as needed. Repeat the above steps until there are no more errors.

If you do not use Oracle General Ledger:

  1. Reconcile all your bank statements.

  2. Transfer all transactions from Payables and Receivables to your general ledger interface tables.

  3. Post journals in your general ledger.

  4. Complete your closing process as you would normally.

Related Topics

GL Reconciliation Report

Posting Journal Batches

Unaccounted Transactions Sweep Program, Oracle Payables User Guide

Archiving and Purging Imported Bank Statements

After you import a bank statement into Oracle Cash Management, you can purge its information from the Bank Statement Open Interface tables. After you reconcile the bank statement, you can purge its information from the Bank Statement tables. To save a copy of your bank statement, you can archive the information before you purge it. You can also archive or purge intra-day bank statement information from the Bank Statement Open Interface tables and the Intra-Day Bank Statement tables.

You can run the Archive/Purge Bank Statements program to archive and purge. When the program completes, it automatically prints the Archive/Purge Bank Statements Report to display the number of headers and lines that were archived or purged.

Purging

The purge process deletes all statement header and line information from the open interface tables or the bank statement tables, or both, nothing is retained. When you purge a bank statement, you must also purge any system transactions reconciled to the bank statement.

We recommend that you periodically archive and purge your bank statement interface and bank statement tables. If you do not periodically purge your bank statement interface and bank statement tables, the retained information will continue to occupy valuable disk space.

Warning: If you use Cash Management to reconcile journal entries in General Ledger, you should run the Cash Management Purge program before you purge journals in General Ledger. See: Archiving and Purging, Oracle General Ledger User Guide.

Archiving

With archiving, you can save copies of your bank statement information.

Automatic Archive and Purge

If you set the Archive and Purge options in the System Parameters window, you can automatically archive or purge bank statement information from the Bank Statement Open Interface tables after the bank statements have been successfully imported into Oracle Cash Management. You can also automatically archive or purge imported intra-day bank statement information from the Bank Statement Open Interface tables. To archive or purge information from the Bank Statement tables or Intra-Day Bank Statement tables, however, you must run the Archive/Purge Bank Statements program. See: System Parameters.

Prerequisites

To archive and/or purge imported bank statements:

  1. Navigate to the Submit Request window.

  2. Select the List of Values button to see a list of available programs and reports.

  3. Select Archive/Purge Bank Statements program. The Parameters window appears.

  4. Select the Archive/Purge Objects. You can choose Statement tables, Interface tables, or Both.

  5. Select the Archive/Purge Option. You can choose Archive/Purge or Purge.

  6. Select the Archive Option that you want the program to perform:

  7. Select the Statement Type that you want to archive or purge. You can choose Previous-Day, Intra-Day, or both.

  8. Choose the Bank Branch Name whose statements tables will be archived and/or purged.

  9. Optionally, choose a Bank Account Number. If you do not choose a bank account number, all statements for the bank branch name are processed.

  10. Choose a Statement Date. All statements with this date or an earlier date will be archived and/or purged.

  11. Choose OK to save your work. The Submit Request window appears again.

  12. Complete the Print Options and Run Options regions of the window, then choose Submit to begin running the program.

  13. Review the Archive/Purge Bank Statements Execution Report. If there were errors, investigate and correct them, then rerun the Archive/Purge Bank Statements program.

To archive and/or purge imported bank statements automatically:

  1. Set the Archive and Purge options on the System Parameters window.

  2. Import the bank statement information into Oracle Cash Management.

Related Topics

System Parameters

Importing Bank Statements

Reconciling Bank Statements Automatically

Overview of Setting Up

About Bank Statement Open Interface

Archiving and Purging, Oracle General Ledger User Guide

Archiving Account Balances and Journal Detail, Oracle General Ledger User Guide

ORACLE RDBMS Utilities User's Guide