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

Bank Account Model Overview

The Bank Account model allows users to define and keep track of all bank accounts in the e-Business Suite in one place and explicitly grant account access to multiple operating units/functions and users. Bank accounts for internal use are consolidated in:

The Bank Account model reduces the number of access points to manage bank accounts by providing a centralized user interface where all internal bank accounts can be set up.

Bank account access in this model can be granted to multiple operating units, thus eliminating the redundant duplicate bank account setup under different operating units in case these operating units share the same bank account. This will also simplify the reconciliation process since now one bank account is the system corresponds to one bank account at the bank.

Bank Account Model Setup

To set up Bank Account model:

  1. Define Banks in Oracle Cash Management.

  2. Define Bank Branches in Oracle Cash Management.

  3. If you intend to use this bank account in Oracle Treasury as a company bank account, switch to that application, define Bank Counterparties and link them to Bank Branches that you have created. If you do not intend to use this bank account in Oracle Treasury, skip this step and proceed straight to the Bank Account definition.

  4. Then, create your Bank Accounts in Oracle Cash Management.

  5. If you do not intend to use this bank account in Payroll, then the setup process is complete for you. If you intend to use this bank account in Payroll, switch to that application and add Payroll properties.

Overview of Bank Accounts

When you access the bank setup, the first page shows you all the banks, bank branches and accounts that have already been created. You can navigate the hierarchy at the country, bank, branch and bank account level.

Create Banks

The first step in the bank account creation is the bank definition. This page allows you to search for existing banks, view and update them or create new banks.

Create Bank: Bank Information

  1. Navigate to the Manage Banks and Branches window, select the Banks tab, and select the Create button.

  2. Select one of the two radio buttons in the Bank Options region. When creating a new bank, you can either create a new bank or add bank details to an existing party defined in your Trading Community.

  3. Enter a country name or select a country from the list of values. This is a mandatory field.

  4. Enter the Bank Name.

  5. (Optional) Enter an Alternative Bank name, Short Bank Name, Bank Number, Description, Taxpayer ID, Tax Registration Number, Inactive Date.

  6. Select Finish to save your bank or select Save and Next to enter Bank Address information.

Create Bank: Bank Address

You can maintain several addresses for the bank in case, for example, when the bank has different mailing and physical locations. One of the addresses has to be marked as a primary or identifying.

  1. Navigate to the Create Bank Address window and select the Create button.

  2. Enter a country, or select one from the list of values.

  3. Enter the remaining country specific address details.

  4. Select Apply to save the address.

  5. Select Finish to complete the bank creation or select Save and Next to enter Bank Contact Information.

Create Bank: Contact Information

Similar to multiple addresses, you can maintain multiple contacts at the bank.

  1. Navigate to the Create Bank Contact window and select the Create button.

  2. Enter Contact Information. You need only enter a first or last (Family) name, a Registry ID, and Start Date.

  3. Optionally enter Email, Phone, and Address information for the contact.

  4. Select Apply to save the contact.

  5. Select Finish to complete the bank creation.

Define Bank Branches

Navigate to the Manage Banks and Branches window, then select the Bank Branches tab. Bank branch creation is the next step after the bank creation. This page allows you to search for existing bank branches, view and update them or create new bank branches. You may conduct a Simple Search by filling in information in one of the following fields, and then clicking the search icon: Branch Name, Branch Number, EDI Location, Alternate Branch Name, Country, or Bank Name.

Create Bank Branch: Bank Branch Information

  1. Navigate to the Manage Banks and Branches window, select the Bank Branches tab, and select the Create button.

  2. Enter the Country and Bank Name for which you are creating the branch or select from the list of values and select the Continue button.

  3. Select one of the two radio buttons in the Branch Options region to indicate if you are creating a new branch or adding branch details to an existing party defined in your Trading Community.

  4. Enter the Branch Name (required).

  5. Select a Branch Type. The options are:

  6. Optionally, enter the remaining branch information, such as Alternate Branch Name, Branch Number, BIC, Bank Code.

  7. Select Finish to save your branch or select Save and Next to enter Branch Address and/or Branch Contact information.

Entering Branch Address Details, and supplying Contact Information are the same processes as described when entering this information for banks.

Link Bank Branches in Treasury

If you intend to create an internal bank account for use in Treasury, before proceeding to the bank account setup, you have to link the bank branch you have just created to the counterparty in Treasury. You can create a new or update an existing counterparty. In order to establish the link, you, first of all, need to check the Bank Branch check box. After you do that, a list of values will be enabled in the Full Name field. All the available bank branches will be shown there. You navigate to Setup, Parties, then the Counterparty Profiles window.

Bank and Account Administration: Define Bank Accounts

Once you are done with the bank branch creation, you can proceed to the bank account setup. This page allows you to search for existing bank accounts, view and update them or create new bank account.

Select the bank branch to which your bank account belongs and proceed to the bank account setup. In the first step you will have to select the owner of the bank account; the legal entity that opened this account at the bank. In the following steps you will be able to define which organizations within your company will be able to use this bank account:

  1. Navigate to the Manage Bank Accounts window and select Create.

  2. Enter the Country, Bank Name and Branch Name for which you are creating this account and select Continue.

  3. Enter the Bank Account Owner; the legal entity that owns the account.

  4. Select the types of functions that this bank account is going to be used for: Payables, Payroll, Receivables, or Treasury or all. If the Treasury option is disabled, you have not linked this bank branch to the counterparty in Treasury.

  5. Select Next and enter information in the Account Information tab. For details of the fields, see Bank Account Window reference.

  6. Select Save and Next and enter information in the Account Controls tab.

  7. Select Save and Next and enter information in the Account Access tab. In this step you will define for which organizations and in which functional areas such as Payables, Payroll, Receivables, or Treasury, or all, that this bank account can be used.

    For example, you can let Operating Unit # 1 use this bank account in Payables and Receivables, but limit Operating Unit # 2 to use this bank account only in Payables. If you choose a particular functional area for you bank account, you will be taken to the page where you may be required to enter certain bank account attributes that are unique for this particular functional area. It is also important to note that if you grant Operating Unit # 1 access to this bank account in Payables and Receivables, then all users who have been granted access to Operating Unit #1 will be able to use this bank account in Payables and Receivables (provided that the functional access has been granted to these uses as well).

  8. Select Save and Next and enter information in the Account Contact tab.

    Note: This is the same process as described in Bank Contacts.

  9. Select Finish to save your bank account.

Banks, Bank Branch, and Bank Accounts Window References

Banks Window References

Bank Information Region

Bank Addresses Region

Bank Contact Region

Bank Branch Window References

Bank Branch Information Region

Bank Branch Addresses Region

Bank Branch Contact Region

Bank Accounts Window References

Account Owner and Use Region

Account Information Region

Account Controls Window References

General Controls Region

Cash Management Controls Region

Payables Controls Region

Receipt Controls Region

Reconciliation Controls Region

Foreign Currency Bank Region

Open Interface Controls Region

Manual Reconciliation Tolerances Region

Auto Reconciliation Tolerances Region

Payments Region

Receipts Region

Cashflows Region

Open Interface Region

Oracle Intercompany Setup Steps

Advanced Global Intercompany System (AGIS) enables you to create, settle and reconcile intercompany transactions. Intercompany transactions are transactions that occur between two related legal entities in an enterprise or between groups in the same legal entity. Transactions that occur between two legal entities are called intercompany transactions and transactions that occur between two groups within one legal entity are called intracompany transactions.

Intercompany transactions must be processed in a consistent, systematic way across the enterprise. Use the Intercompany Setup tab to define the processing rules at the enterprise level.

AGIS setup is required to use the Bank Account Transfers feature. Use the Intracompany Balancing rule in AGIS if the bank account transfers are between the same ledgers; whereas, you use the Intercompany Accounts rule if the transfers are between different ledgers.

Intercompany Accounting Pages

This section describes the Intercompany Accounting page.

This section describes key Intercompany accounting setup pages.

Common Intercompany Accounts Fields

This section describes some of the common fields used in the Intercompany accounts setup pages.

Transacting Legal Entity

The legal entity with the transacting (from) perspective in the intercompany trading relationship. The legal entity from which the intercompany transaction is initiated. Choose the transacting legal entity from the list of values.

Transacting Ledger

The ledger with the transacting (from) perspective in the intercompany trading relationship. You can choose any ledger that is mapped to the transacting legal entity, including both primary and secondary ledgers, since intercompany accounts can be defined for both primary and secondary ledgers.

Transacting Balancing Segment Value

The balancing segment value for the transacting (from) perspective for which intercompany accounts are defined. The list of values displays all the balancing segment values in the transacting ledger to which the transacting legal entity is mapped.

Trading Partner Legal Entity

The legal entity with the trading partner (to) perspective in the intercompany trading relationship. Choose the trading partner legal entity from the list of values. The list of values shows all legal entities to which you have access to and the value All Other.

Trading Partner Ledger

The ledger with the trading partner (to) perspective in the intercompany trading relationship.

Trading Partner Balancing Segment Value

The balancing segment value for the trading partner (to) perspective for which intercompany accounts are defined. The list of values displays all the balancing segment values in the trading partner ledger to which the trading partner legal entity is mapped.

Intercompany Accounts Search Page

Use this page to query, create, and update intercompany accounts. To update intercompany accounts, query the trading legal entity and transacting ledger and click Update, or choose Create Accounts to create a new Intercompany account.

Create Intercompany Accounts Pages

This page is the first step in creating a new intercompany account. To access the Define Accounts page, click the Define Accounts icon.

Define Accounts Page

Use this page to define Intercompany Receivables and Payables accounts. For each of these account types you must define at least one account.

Use for Balancing

Use this field to select an account to be used as the balancing account in subledgers and intercompany General Ledger journals.

Update Intercompany Accounts

This page is similar to the Create Intercompany Accounts page and allows you to update existing intercompany accounts.

View Reciprocal Accounts

Clicking this button displays the accounts used by the Trading Partner (to) Legal Entity and Trading Partner (to) Balancing Segment Value to book intercompany transactions with the Transacting (from) Legal Entity and Transacting (from) Balancing Segment Value. This button is inactive if the Trading Partner Legal Entity or Balancing Segment Value does not have reciprocal intercompany accounts defined, or if the Trading Partner Legal Entity resides on another applications instance, or if the value is All Other.

Balancing Accounts Search Page

Use this page to query, create, or update intracompany balancing rules. To update a balancing rule, query the rule and select the rule from the results table. Choose the Create Rule button to create a new intracompany balancing rule.

Create Intracompany Balancing Rules Page

Use this page to create new balancing rules. Before creating a new rule, you should query the rule on this page to ensure the rule does not already exist.

Selected Fields

Ledger: Enter the ledger for which to define balancing rules. The list of values displays all the ledgers to which you have access and indicates whether the ledger is primary or secondary. The ledgers available here come from the Data Access Set assigned to your responsibility. The list of values displays only ledgers that are assigned to complete configurations in Accounting Setup Manager and that have the Enable Intracompany Balancing Journals check box checked on the Update Ledger: Ledger Options page.

Status: This field indicates whether the rule is enabled or disabled.

Additional Information Context: This field allows you to enter the context for the Intracompany Rule Descriptive flexfield. The information entered is only for your reference.

Balancing Details Tab

Credit Balancing Segment: This field represents the credit (party recording payable) balancing segment value. The list of values shows all of the balancing segment values allowed by your security profile. For each ledger-legal entity-source-category combination, there must be the default rule All Other-All Other.

Debit Account: This is the balancing account that the debit balancing segment value uses to balance when trading with the credit balancing segment value.

For balancing segment value - balancing segment value rules where values are explicitly chosen, the balancing account you choose is used exactly. However, when you select the value All Other, the Balancing API determines and substitutes the correct balancing and intercompany segment values at the time of balancing. For example, if you enter an account code combination 01.4000.02, it actually means xx.4000.yy, where xx is the balancing segment value of the debit balancing segment value on the journal and yy is the balancing segment value of the credit balancing segment value on the journal. The Balancing API substitutes these values during balancing.

Credit Account: This is the balancing account that the credit balancing segment value uses to balance when trading with the debit balancing segment value.

For balancing segment value - balancing segment value rules where values are explicitly chosen, the balancing account you choose is used exactly. However, when you select the value All Other, the Balancing API determines and substitutes the correct balancing segment value at the time of balancing. For example, if you enter and account code combination 02.2000.01, it actually means xx.2000.yy, where xx is the balancing segment value of the credit balancing segment value on the journal and yy is the balancing segment value of the debit balancing segment value on the journal. The Balancing API substitutes these values during balancing.

Options Tab

Level of Summarization:

Clearing Balancing Segment Value Usage:

Default Options:

Default options include specifying clearing options in case a clearing company should be used but none can be determined for the journal.

Oracle Payments Setup Steps

Oracle Payments setup is required if you want to settle Bank Account Transfers through the Oracle Payments system.

Setting Up First Party Payees

On the funds capture side, the first party payee is the deploying company, or organizations within the deploying company, that receives funds from its customers, the payers, by credit card payments, debit card payments, direct debits to bank accounts, and bills receivable transactions sent to banks.

Prerequisites

Before you can set up first party payees, you must perform the following setup steps:

Purpose

The purpose of setting up first party payees is to tie the payment processing rules of the funds capture process profile to the business entities that need to use them.

Completing the Header

In the Code field of the Create Payee page, enter a shortname for the payee. This value is not updateable in the Update Payee page.

In the Merchant Category Code field of the Create Payee page, enter a four-digit code that is usually supplied by the payment system, which identifies the industry in which the deploying company operates.

Selecting Payment Systems and Payment System Accounts

In the Payment System Accounts region of the Create Payee page, you select payment systems from the Payment System list of values that are used by the deploying company or its organizations. Additionally, you select payment system accounts from the Payment System Account list of values.

Each payment system is associated with one or more payment system accounts. The payment system account is an account identifier used by the deploying company's payment system, which is stored in Oracle Payments.

Note: If you do not select a payment system from the Payment System list of values, then all the payment system accounts are displayed in the Payment System Account list of values and the Payment System field is populated with the option that corresponds to the selected payment system account.

Assigning Operating Units

In the Assign Operating Units region of the Create Payee page, you can assign one or more operating units to the payee. The assignment of one or more operating units to a first party payee occurs because source products attribute each funds capture transaction to an operating unit. This setup allows Oracle Payments to map a transaction from an operating unit to a payee. Each operating unit may only be assigned to one payee.

Selecting Default Payment Systems

Default payment systems are used by Oracle Payments to process transactions only if the routing rules do not specify a payment system account or none of the conditions in the routing rules are met for the transaction in question.

Selecting Purchase Card Processing Transaction Detail

You can specify the level of transaction detail that is sent to the payment system for purchase card processing, along with the settlement. Level II of purchase card processing transaction detail includes the amount to be captured plus additional information, such as tax and shipping charges. Level III of purchase card processing transaction detail includes the amount to be captured plus tax and shipping charges, as well as itemization of the products or services purchased, such as one sweater, two pairs of slacks, and three pairs of shoes.

Creating a Risk Formula

A risk formula is a group of risk factors plus weights, which tells Oracle Payments how to calculate the risk score of credit card transactions. A risk factor is any information, which a first party payee uses to evaluate the risk of a customer who wishes to buy products or services from the payee. Examples of risk factors are address verification, payment history, and transaction amount.

One or more risk formulas, comprised of risk factors, can be configured for each first party payee. First party payees can associate each risk factor with different weights that must total 100. Based on their business model, deploying companies can use any number of the seeded risk factors for their organizations.

The majority of the risk factors have associated updatable fields for which you enter information or select options. For some risk factors, such as address verification code or risk scores, your payment system provides values for you to enter.

Specifying a Risk Threshold

A risk threshold is a number value, or score, between 0 and 100, above which, the deploying company may want to review or reject a credit card or a purchase card as payment for products or services. A zero risk threshold represents no risk and 100 represents the highest possible risk. The risk threshold value is determined and entered after reviewing all the risk factors for the particular payee and their associated weights.

Creating Routing Rules

Oracle Payments routes settlement requests to the appropriate payment systems. Each first party payee may have one or more routing rules with corresponding priorities. Routing rules determine which payment system account and which funds capture process profile are used to process funds capture transactions for specific payment methods.

Routing rules are comprised of destination information and one or more conditions that must be met if the funds capture transaction is to be routed using that rule's destination information. Destination information specifies the payment system account to which the transaction is routed. A condition is comprised of a criterion, (such as Amount, Currency, Organization, Card Type, or Bank Routing Number) an operator related to the criterion, and the value of the criterion. An example of a condition is Amount (criterion) Greater Than (operator) $1,000 (value).

Routing rule are prioritized and the one with the highest priority is evaluated by Oracle Payments first. If the values in the requested funds capture transaction match the conditions in the routing rules, the settlement request is routed to the applicable payment system account for processing.

Setting Up Payments Systems

A payment system is an organization that provides financial settlement services. Companies that deploy Payments typically choose payment systems to process their funds captures and, sometimes, their electronic funds disbursements payment instructions. A payment system can be the bank at which the deploying company has its bank accounts or it can be a third party processor that connects deploying companies with financial institutions. The latter is commonly the case for credit card processing. Payment systems are not required for printed funds disbursement payments, but may be required for related services, such as positive pay or other reporting.

Prerequisites

Before you can set up payment systems, you must perform the following setup steps:

Purpose

The purpose of setting up payment systems is to:

Specifying Supported Capabilities

When creating a payment system on the Create Payment System setup page, you:

Settings Required by Payment System

In this region, you can define parameters that the payment system requires for each transaction or settlement batch. When you define payment system accounts, you provide the actual payment system-provided values for these parameters.

Payment Systems on the Funds Capture Side

On the funds capture side, payment systems play a central role in the creation of funds capture process profiles, since the creation of a funds capture process profile is payment system-specific. Funds capture process profiles specify how Payments processes settlements, including how the settlement is to be formatted and how it is to be transmitted.

Payment Systems on the Funds Disbursement Side

On the funds disbursement side, the payment system plays a smaller role in the creation of payment process profiles, which are blueprints for payments that contain payment instruction formatting and transmission information, as well as payment grouping, payment limits, and payment sorting details.

Setting Up Transmission Configurations

A transmission configuration implements a specific transmission protocol, which allows the delivery of a transaction to a specific payment system or financial institution.

Each transmission protocol has parameters that require values. The values defined for the parameters comprise the transmission configuration for that transmission protocol. For example, the payment system, PaymentTech, may require a Socket IP Address of X and a Socket Port Number of Y. Together, X and Y represent Transmission Configuration A for a given transmission protocol.

Purpose

The purpose of setting up transmission configurations in the Create Transmission Configuration setup page is to enable electronic connectivity with payment systems by specifying parameter values.

Understanding Funds Capture Bank Account Transfers

Oracle Payments supports funds capture bank account transfers for both business-to-consumer and business-to-business models. The funds capture bank transfer functionality facilitates electronic transfer of payment amounts from a customer's bank account to the payee's bank account. Online validations are online and real-time, while actual funds transfer transactions are offline. In addition to standard direct debits, Oracle Payments supports remittance of bills receivable instruments. Source products use Oracle Payments as their interface to payment systems that provide connectivity to appropriate clearing house networks.

Setting Up Funds Capture Payment Methods

A funds capture payment method is a payment medium by which a third party payer, such as a customer, chooses to remit payment to the first party payee, which is the deploying company. Oracle Payments supports three funds capture payment methods for automated funds capture processing: credit cards, PINless debit cards, and bank account transfers.

Oracle Payments seeds three updateable funds capture payment methods for credit card, PINless debit card, and bank account transfer instrument types and also seeds five updateable payer-initiated instrument types, such as check or wire transfer. For payer-initiated instrument types, Oracle Payments records the transaction, but does not perform any processing for these payment methods.

From the Funds Capture Payment Methods page, you can view and update the seeded funds capture payment methods or define new funds capture payment methods for bank account transfers only.

How Source Product Users Employ Funds Capture Payment Methods

Once the funds capture payment methods are set up, they are available for selection by the source product user while creating or updating external payers. Additionally, source product users select one of the following seeded funds capture payment methods before submitting a payment transaction to Oracle Payments:

  1. ACH (Automated Clearing House) Transfer

  2. EFT (Electronic Funds Transfer) Bank Transfer

  3. Credit Card

  4. PINless Debit Card

  5. Check

  6. Cash Payment

  7. Wire Transfer

  8. Invoice

  9. Offline Manual Payment

Note: Of those in the preceding list, the first two are bank account transfer methods and the last five are payer-initiated methods.

Purpose

The purpose of setting up funds capture payment methods is to assign validation sets to seeded funds capture payment methods and to assign validation sets and define details of bank account transfers.

Creating Payment Methods

When you create a funds capture payment method for the processing type of bank account transfer, you enter user-defined values in the Code field, which is an identifier, or shortname, for the funds capture payment method you are creating.

Assigning Validations

In the Assign Validation Sets region, you assign applicable validation sets to the funds capture payment methods of processing type Bank Account Transfer that you are creating.

Note: The Assign Validation Sets and Descriptive Flexfields regions only display for non payer-initiated payment instrument types.

Setting Up Funds Capture Process Profiles

A funds capture process profile is a setup entity that acts as a blueprint for funds capture processing. It is equivalent to the payment process profile for funds disbursement processing. When you create a funds capture process profile, you specify funds capture processing rules for a specific payment system. These funds capture process profile rules include how:

Prerequisites

Before you can set up funds capture process profiles, you must perform the following set up steps:

Purpose

The purpose of setting up funds capture process profiles is to specify funds capture processing rules for a specific payment system. The funds capture process profiles contain all the rules necessary for the execution of funds capture orders for specific payment systems.

Sending and Receiving Online Payer Verifications, Authorizations, and Debits

The region name that you see in the Create Funds Capture Process Profiles page is dependent upon the option selected in the Processing Type drop-down list.

Sending and Receiving Online Payer Verifications

If you select Bank Account Transfer from the Processing Type drop-down list in the Create Funds Capture Process Profile page, the Online Payer Verification region displays. By selecting outbound and inbound payment system formats, as well as a transmission protocol, the deploying company ensures that it can:

Note: Online Payer Verification is an optional feature and is not offered by all payment systems.

Sending and Receiving Online Authorization

If you select Credit Card from the Processing Type drop-down list in the Create Funds Capture Process Profile page, the Online Authorization region displays. By selecting outbound and inbound payment system formats, as well as the transmission protocol, the deploying company ensures that it can:

Sending and Receiving Online Debits

If you select Debit Card from the Processing Type drop-down list in the Create Funds Capture Process Profile page, the Online Debit region displays. By selecting outbound and inbound payment system formats, as well as the transmission protocol, the deploying company ensures that it can:

Sending and Receiving Settlements

By selecting outbound and inbound payment system formats, as well as the transmission protocol, the deploying company ensures that it can:

Sending Payer Notifications to Payers

Payer notification is a message sent by the deploying company to each of its customers after the settlement or settlement batch is transmitted, notifying them of a funds capture transaction. This notification is formatted according to the option selected in the Format field of the Payer Notification region and delivered to the payer, that is, the deploying company's customer, by e-mail, fax, or United States mail.

Note: If the payment system is a processor, then the Automatically Submit at Settlement Completion check box appears in the Payer Notification region of the Create Funds Capture Process Profile page. If the payment system is a gateway, then the Automatically Submit at Settlement Completion check box disappears from the Payer Notification region of the Create Funds Capture Process Profile page.

Receiving Acknowledgements from Payment Systems

By selecting outbound and inbound payment system formats, as well as the transmission protocol, the deploying company ensures that it can:

Acknowledgements are sent from the payment system to the deploying company, indicating whether credit card or bank account transfer settlements were made. Acknowledgements can be pushed by the payment system onto the deploying company's system, or the deploying company may need to actively retrieve acknowledgements from the payment system. Acknowledgements can also indicate whether the settlement batch was processed and had successes or failures.

A payment system can reject a settlement batch when the batch is incomplete or missing information.

Specifying Settlement Grouping

Settlement grouping begins when you select check boxes in the Settlement Grouping region of the Create Funds Capture Process Profile page. Selection of settlement grouping attributes specifies that settlements with the same settlement grouping attributes will be included in a unique settlement batch when that Funds Capture Process Profile is used.

The grouping example in the table below illustrates how settlements A to D are grouped into settlement batches, given the three settlement grouping attributes selected for Funds Capture Process Profile Y. The following settlement grouping attributes are used in the example:

Example of Settlement Grouping into Settlement Batches for the Funds Capture Process Profile Y
Settlement Settlement Attributes on Settlement Unique Settlement Batches Contains...
A
  • First Party Organization = Organization Unit 1

  • First Party Legal Entity = Oracle North America

  • Settlement Date = January 1, 2006

Settlement Batch I contains:
  • Settlement A

  • Settlement B

B
  • First Party Organization = Organization Unit 1

  • First Party Legal Entity = Oracle North America

  • Settlement Date = January 1, 2006

 
C
  • First Party Organization = Organization Unit 2

  • First Party Legal Entity = Oracle North America

  • Settlement Date = January 1, 2006

Settlement Batch II contains:
  • Settlement C

D
  • First Party Organization = Organization Unit 1

  • First Party Legal Entity = Oracle North America

  • Settlement Date = January 2, 2006

Settlement Batch III contains:
  • Settlement D

Specifying Settlement Limits

You can specify limits that apply to each settlement batch, including the maximum number of settlements in a batch.

The Exchange Rate Type drop-down list has the following options:

Specifying Payment System Accounts

When you specify payment system accounts to be used with the funds capture process profile, you are effectively creating separate profiles at the account-level. By default, these account-level profiles are named by concatenating the funds capture process profile name and the payment system account name, but you can change it.

Once the identifier is entered, you can select the applicable transmission configuration that corresponds to each selected transmission protocol.

The transmission configuration options available in the Payment System Accounts region are dependent on the options selected in the Transmission Protocol fields.

Note: When you change options in the Transmission Protocols fields, you must clear the transmission configuration selections and reselect.

The following conditions apply to the selection of transmission configurations:

Maintaining Bank Account Signing Authorities

You can add, delete, and modify signing authority information for your internal bank accounts in the Maintain Bank Account Signing Authority window. You can also update, track, and obtain approval for any exceptions or changes in signing authority records.

You can use existing individual profiles from Oracle Human Resources or create profiles for individuals that will be granted signing authority for an internal bank account. You can indicate single and joint limits, signer groups, effective dates, and approval status.

You can use Discoverer Views on the bank account signing authority information to view historical audit trails for changes made to the signatory information.

You can configure Oracle Approvals Manager and Oracle Workflow to set up rules to determine the required approvals and send workflow notifications when adding and updating signing authority information.

Setup Prerequisites

  1. Enter the potential signing authorities in Oracle HRMS. Non-Oracle HRMS users can enter people in the Oracle HR Foundation Responsibility.

  2. Set up internal bank accounts in Oracle Cash Management.

  3. In the System Parameters window, select the appropriate option for the system parameter, Signing Authority Approval. The default is Workflow Enabled. Workflow will change the status of all new signing authorities from Pending to Approved when saved. To configure Workflow and manually control the approval status, you must select Manually Controlled.

  4. Link your FND user ID or applications ID to a valid Person ID in Oracle HR to access the Bank Account Signing Authority window in the maintain mode.

  5. (Optional) Modify or update the Lookup for Signing Group.

  6. (Optional) Set up descriptive flexfields.

Enter Signing Authority

To enter bank account signing authority:

  1. Navigate to the Maintain Bank Account Signing Authority window.

  2. In the Find Bank Account window, select the bank account number for which you want to enter signing authorities.

  3. Select the person name for whom the signing authority information is being entered. The Person Type, HR Organization, Job, Location, and Email information default in, if previously entered in Oracle HRMS.

  4. Enter a single and/or joint signing limit.

  5. Enter the Effective Start Date for this signing authority.

  6. Enter or update the Group, Other Limitations, and Effective End Date.

  7. (Optional) Add attachments to the new signing authority record.

  8. Save your work.

Update Signing Authority

You can update the Group, Other Limitations, Effective End Date, and Status information on an existing signing authority.

If a signer's limits change, you should update the existing signing authority record with an effective end date and enter another record with the new limits.

Similarly, if a signer's authority is revoked, you should update the end date on the record.

If you make an error when entering a signer's limits or effective start date, you should delete the record.

Enter a Signing Authority Multiple Times

You may enter a signer multiple times on the same account, but you cannot overlap the effective date ranges.

If the start date of a new entry for the same signer and bank account is before the earliest start date of the existing entries, the end date should be prior to the earliest start date of the existing entries.

Example: The following records exists:

Signer A, Single Limit 50,000, Start Date 01-Jan-05, End Date 30-Jun-05

Signer A, Single Limit 70,000, Start 01-Jul-05, End Date <null>

If you want to add Signer A's limit for 2004, the start date and end date should be before 01-Jan-05.

If the start date of a new entry for the same signer and bank account is between the start dates of the existing entries, the end date should not fall on or between the effective date ranges of any existing entries.

Example: The following records exists:

Signer A, Single Limit 50,000, Start Date 01-Jan-05, End Date 31-Mar-05

Signer A, Single Limit 70,000, Start Date 01-Jul-05, End Date <null>

If you want to add Signer A's limit for April through June 2005, the start date and end date should be before 01-Apr-05.

View Signing Authority

You can view signing authority information by navigating to the View Bank Account Signing Authority window.

Maintain Bank Account Signing Authority Window Reference

Bank Account Region

Account Number: Bank account number.

Account Name: Name of the bank account.

Bank Name: Name of the bank.

Bank Branch: Name of the bank branch.

Currency: Bank account currency.

Main Details Tabbed Region

Name: Name of the bank signatory.

Single Limit: The amount of the single signing limit. If the Single Limit is zero, then the Joint Limit should not be zero.

Joint Limit: The amount of the joint signing limit. If the Joint Limit is zero, the Single Limit should not be zero. If the Single Limit is greater than zero, including null, the Joint Limit should not be between zero and the Single Limit. The Joint Limit can be equal to or greater than zero or the Single Limit, including null.

Group: (Optional) User-defined lookup for bank signing authorities. Available values are Null, GROUP A, GROUP B, and GROUP C.

You can use this field to do the following:

Other Limitations: (Optional) Any limitation information not conveyed in other fields, such as the rule of who can sign with whom.

Effective Start Date: The date the signing authority begins.

Effective End Date: The date the signing authority ends.

Status: The status of the signing authority. The status can be Approved, Pending, or Rejected.

Additional Details Tabbed Region

Name: Name of the bank signatory.

Person Type: The classification of the bank signatory in Oracle HRMS.

HR Organization: The group or department the bank signatory belongs to.

Job: The job function of the bank signatory.

Location: The physical location of the bank signatory in the organization.

Email: The email address of the bank signatory.

Discoverer View

The Discoverer view for Bank Account Signing Authority provides details and a historical audit trail of the changes made to the signing authority record. The Discoverer view of the Bank Signing Authority can be used to report on the bank account signing authority information.

Bank Account Signing Authority Messages

The following table contains bank account signing authority messages and explanation of those messages.

Error Message Explanation
In order to maintain bank account signing authority, your FND user ID must be mapped to a valid person-id in HR. Please contact your system administrator. [OK] FND user ID is not mapped to HR Person ID.
Do you want to save the changes you have made? [YES] [NO] [CANCEL] Standard save changes message
Delete Message [text] Standard confirm deletion message
The limit amount can not be negative. Please enter a new limit. [OK] Negative limit amount
Please enter a limit amount. [OK] Enter a signing limit amount.
The joint signing limit must be zero or greater than or equal to the single signing limit. Please enter a new amount. [OK] Joint signing limit amount
The effective start date must equal or precede the effective end date. Please enter a new date. [OK] Effective dates
The effective date ranges, of the records for a signer's limits, may not overlap. Please correct the effective dates. [OK] Overlapping effective date ranges

Cash Pools

Cash pooling is a cash management technique aimed at optimizing the balances of the internal bank accounts held at one or several banks. It is usually performed on a daily basis.

To perform cash pooling, you need to define a cash pool and assign internal bank accounts to the cash pool.

Creating Cash Pools

A cash pool is a group of bank accounts with one or more concentration accounts and multiple sub accounts. You can create the following two types of cash pools:

To create a notional cash pool:

  1. Navigate to the Cash Pools Search and Results page.

  2. Select Notional Cash Pool.

  3. Select Go.

  4. In the Create Notional Cash Pool: Header Information page, enter a unique Cash Pool name.

  5. Select a concentration account for your cash pool. The Account Number, Bank Name, Legal Entity, and Cash Pool Currency default in based on the selected bank account.

    Note: You can only select bank accounts that you have access to, that have not been assigned to other cash pools, and for which the Interest Rounding and Interest Includes options have been assigned as a part of the Interest Rate Schedule.

  6. In the Effective Date From field, enter the first date that the notional cash pool is active, such as the first date the consolidated bank account balances will be displayed on the Bank Balances page or the first date the interest will be calculated on the consolidated balance.

  7. In the Effective Date To field, enter the last date that the notional cash pool is active.

  8. Click Next to assign sub accounts.

  9. In the Create Notional Cash Pool: Sub Accounts page, select bank accounts to include as sub accounts for your cash pool.

  10. In the Create Notional Cash Pool: Review page, review the information you have entered.

  11. Click Finish to save the cash pool.

To create a physical cash pool:

  1. Navigate to the Cash Pools Search and Results page.

  2. Select Physical Cash Pool.

  3. Select Go.

  4. In the Create Physical Cash Pool Header Information page, enter a unique name for your cash pool.

  5. In the Concentration Type field, select either One Account or Two Accounts to indicate if the cash pool will have one or two concentration accounts.

    If you select the One Account option, the Concentration Account field is displayed.

    Select a Concentration Account. The Account Number, Bank Name, Company, and Cash Pool Currency default in.

    If you select the Two Accounts option, the Investment Concentration Account field and the Funding Concentration Account field is displayed.

    Select an Investment Concentration Account and a Funding Concentration Account for the cash pool. The Account Number, Bank Name, Legal Entity, and Cash Pool Currency default is based on the selected bank accounts. Both the investment and funding concentration accounts should belong to the same legal entity.

  6. In the Effective Date From field, enter the first date that the physical cash pool is active, such as the first date the cash leveling transactions can be created.

  7. In the Effective Date To field, enter the last date that the physical cash` pool is active.

  8. In the Bank Initiated Sweeps field, select Yes if your bank initiates the cash leveling transactions. Select No if you want to use this cash pool to create transactions in the system and send payment instructions to the bank.

  9. Select Next to assign sub accounts.

  10. In the Create Physical Cash Pool: Sub Accounts page, select bank accounts to include as sub-accounts in the cash pool.

  11. Select Next.

  12. In the Create Physical Cash Pool: Target Balances page, define target balances and transfer amount calculation rules for each sub account . If target balances for sub accounts included in the cash pool have already been defined in the bank account setup, they will default here.

  13. Select Next.

  14. If your system profile option CE: Bank Account Transfers is set to Treasury, in the Create Physical Cash Pool: Treasury Deal Attributes page, select the attributes that are required for creating transactions in Oracle Treasury during cash leveling for company-initiated transfers, or during sweep transaction generation for bank initiated sweeps. See: Reconciling Sweep Transactions.

    If your system CE: Bank Account Transfers profile option is set to Cash Management, in the Create Physical Cash Pool: Bank Account Transfer Attributes page, select that attributes that are required for creating transactions in Oracle Cash Management during cash leveling for company-initiated transfers, or during sweep transaction generation for bank initiated sweeps. See: Reconciling Sweep Transactions

  15. Select Next.

  16. In the Create Physical Cash Pool: Review page, review the information you have entered.

  17. Click Finish to save the cash pool.

Create (Notional/Physical) Cash Pool: Header Information Page Reference

Cash Pool Name: The name of the cash pool.

Concentration Type: (Physical Cash Pool only) The concentration type that determines whether the cash pool will have one or two concentration accounts. The following two options are available: One Account or Two Accounts.

Concentration Account: The concentration bank account for the cash pool.

Investment Concentration Account: (Physical Cash Pool only) The concentration account used for transferring surplus funds from sub-accounts.

Funding Concentration Account: (Physical Cash Pool only) The concentration account used for transferring funds to sub-accounts to cover the deficit.

Account Number: The account number corresponding to the selected concentration accounts.

Bank Name: The bank name corresponding to the selected concentration account.

Legal Entity: The name of the legal entity corresponding to the concentration accounts.

Cash Pool Currency: The currency of the selected concentration account. In case the physical cash pool has two concentration accounts, then both the concentration accounts must have the same currency.

Effective Date From: The first date that the cash pool is active.

Effective Date To: The last date that the cash pool is active.

Bank Initiated Sweeps: (Physical Cash Pool only) This choice list indicates whether the cash leveling transfers are initiated by the bank or not.

Create (Notional/Physical) Cash Pool: Sub Accounts Page Reference

Cash Pool Currency: The currency of the concentration account of the cash pool.

Concentration Account: The concentration bank account for the cash pool.

Name: The bank account name.

Type: The type of the sub account. The type can be Account.

Account Number: The account number for the bank account.

Bank: The bank corresponding to the bank account number(s) shown in the Account Number column.

Legal Entity/Subsidiary: The legal entity or subsidiary corresponding to the account number(s) displayed in the Account Number column.

Create Physical Cash Pool: Target Balances Page Reference

Cash Pool Currency: The currency of the concentration account of the cash pool.

Concentration Account: The cash pool concentration account.

Name: The bank account name.

Minimum Target Balance: The minimum target balance of the bank account used to determine the projected fund deficit during cash positioning. If the minimum target balance has been entered for the bank account in Oracle Treasury it is displayed in this field. You can overwrite the default value.

Maximum Target Balance: The maximum target balance of the bank account used to determine the projected fund surplus during cash positioning. If the maximum target balance has been entered for the bank account in the bank account setup is displayed in this field. You can overwrite the default value.

Minimum Payment Amount: The minimum payment amount used to determine if and how much of the projected fund surplus is transferred to the concentration account during cash leveling.

Minimum Receipt Amount: The minimum receipt amount used to determine if and how much of the projected fund deficit is transferred from the concentration account during cash leveling.

Rounding Factor: A funds transfer rule used to determine how to round amounts when calculating the projected fund surplus or deficit for transfer to or from the concentration account during cash leveling. The default is Unit.

Rounding Rule: A funds transfer rule used to determine how to round amounts when calculating the projected fund surplus or deficit for transfer to or from the concentration account during cash leveling. The options are: Nearest, Round Down and Round Up. The default is Nearest.

Create Physical Cash Pool: Bank Account Transfer Deal Attributes

General Details Region

Payment Details Region

Create Physical Cash Pool: Treasury Deal Attributes

Inter-Account Transfers Region

Intercompany Funding Region: Company Attributes

Intercompany Attributes

Viewing and Updating Cash Pools

You can view cash pool information by searching for the cash pool name and clicking on the cash pool name in the Search and Results page. If you have the appropriate user security, you can update the cash pool.

Overview of Single European Payments Area (SEPA)

In this release, the Single European Payments Area (SEPA) feature is incorporated making it possible for consumers, businesses, and governments to make cashless payments from a single payment account using a single set of payment instruments throughout the 27 member states of the European Union and also in Liechtenstein, Iceland, Norway, and Switzerland. The goal is for these payments to be as inexpensive, efficient, and safe as domestic payments are today. Standardized payments are scheduled for January 1, 2008.

The SEPA payment schemes will operate alongside existing domestic payment schemes during the transition period (from 2008 till 2010) where customers can decide whether to use SEPA formats or not.

The SEPA enhancements in Oracle Cash Management through Oracle Payments are designed to improve straight-through processing and allow increased transparency into payment flows. Support is provided for the new ISO 20022 payment schemes as defined in the SEPA rule books enabling users to generate messages directly from their ERP system without having to implement additional middleware for data conversion.

In order to be able to make SEPA payments the following information (amongst others) is mandatory:

Related Topics

Bank Identification Code (BIC)

International Bank Account Number (IBAN)

SEPA Credit Transfer

Bank Identification Code (BIC)

The Bank Identification Code (BIC) (formerly called SWIFT Code) is entered at bank branch level.

BIC consists of either 8 or 11 characters. The BIC consists of the following elements:

The length of the BIC will be validated at entry time. If the bank branch is used for SEPA payments, BIC is mandatory.

Related Topics

Overview of Single European Payments Area (SEPA)

International Bank Account Number

SEPA Credit Transfer

International Bank Account Number (IBAN)

The International Bank Account Number (IBAN) is an international standard that uniquely identifies a bank account number.

IBAN consists of up to 34 contiguous alphanumeric characters containing the following consecutive components:

The IBAN is validated upon entry. If the bank account is used for SEPA payments, IBAN is mandatory.

Related Topics

Overview of Single European Payments Area (SEPA)

Bank Identification Code

SEPA Credit Transfer

SEPA Credit Transfer

Oracle Payments in this release cover the SEPA Credit Transfer (SCT) feature, which means enabling the Payment originator or payer to transfer money through their bank to the account of the beneficiary or supplier.

The SEPA Credit Transfer scheme is defined by the European Payment Council (EPC) as a set of rules, practices, and standards to support the creation and implementation of a core and basic credit transfer process whether for single, bulk or repetitive payments. The SCT will be governed by the EPC Rulebook and Implementation Guidelines Version 2.2 that were approved by the EPC in December 2006.

The SEPA Credit Transfer supports the ISO20022 message with the SEPA implementation: customer credit transfer initiation. This XML message contains all the relevant information related to the payment instruction and is sent by the Payment originator to the bank.

Related Topics

Overview of Single European Payments Area (SEPA)

Bank Identification Code

International Bank Account Number