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Oracle Cash Management User Guide
Release 12.1
Part Number E13483-04
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Bank Account Balances and Interest Calculations

This chapter covers the following topics:

Bank Account Balances

Bank account balance maintenance and reporting is supported for all internal bank accounts in the system that are defined in Oracle Cash Management. For each bank account, you can keep track of multiple bank account balance types including: ledger, available, value dated, 1-day float, 2-day float, projected month-to-date average, and year-to-date average. Reporting tools are available to view all this centrally stored balance history for trend analysis as well as to compare actual versus projected balances. Additionally, the system enables you to verify interest amounts charged or credited by banks based on balance history and user-defined interest rate schedules

Input Bank Account Balances Data Manually

You can enter any bank account balance values manually and you can enter the balances for one bank account for multiple dates or multiple bank accounts for one date.

Load Bank Account Balances From Bank Statements

The Bank Statement Loader program recognizes the following balances reported on the bank statement and populates any new balance values accordingly:

Store Projected Bank Account Balance

Projected bank account balance can be entered manually or populated automatically during cash positioning. In order to capture the projected closing balances automatically, when viewing the cash position results by bank account, select Save Projected Balances button.

Store User Defined Balance Types

You can setup custom defined balance types and assign a name to the balance type field. The name then becomes part of the bank account balance type LOV so that it can be used in other parts of the application such as cash positioning, interest calculations, and balance reporting. Due to limitations on the bank statement loader, it does not support user-defined balance types. These new balances types can be manually input.

Maintaining Balances By Account

You can select a single bank account and manage all its balance types for multiple dates on one page. Please note that the Notional Cash Pool balance cannot be entered or updated directly as it is automatically calculated as a sum of balances of the pool participants. If the Notional Cash Pool balance is incorrect, the balances of pool participating accounts should be updated.

Note: Before you can maintain balances of bank accounts that are used in Oracle Treasury, you need to assign an interest rate schedule to such accounts. Please see Interest Rate Schedules section for more details.

To maintain balances by account:

  1. Navigate to the Maintain Bank Account Balances Page.

  2. Enter Legal Entity, Bank Name, Currency, Account Name, or Account Number as search criteria.

  3. Click Go.

  4. Select the account you want to update and click the Update icon for either Historical Balances or Projected Balances.

  5. Enter the appropriate date range, if the desired balance dates are not displayed automatically, and click Go.

  6. Enter or update the account balance.

  7. Click Apply.

Maintaining Balances For Multiple Accounts

You can select multiple bank accounts and manage all their balance types for a single date on one page.

To maintain balances for multiple accounts:

  1. Navigate to the Maintain Bank Account Balances Page.

  2. Enter Legal Entity, Bank Name, Currency, Account Name, or Account Number as search criteria.

  3. Click Go.

  4. Select the accounts you want to update and click Update as Group.

  5. Enter the desired balance rate.

  6. Enter or update the account balances.

  7. Click Apply.

Balance Reporting

There are several ways to view and report on balances in Oracle Cash Management.

The following concurrent requests are available to produce XML Publisher reports:

Bank Account Balances Single Date Report and Bank Account Balances Date Range Report can show all the bank account balances converted into a single currency, if you specify a reporting currency and select an exchange rate type.

In addition to the XML reports, the bank account balances can be viewed online on the Report Bank Account Balances page.

To create a personalized view layout:

  1. Navigate to the Report Bank Account Balance Page.

  2. If you do not have any personalized views created, you will be taken to the Advanced Search page. In this case, click Save Search. If you already have at least one view created, you will be taken to the Views page. In this case, click Personalize and then Create View.

  3. On the Create View page, configure a personalized bank balance view layout In the General Properties region, enter the View name, number of rows displayed per page, default view flag and View description.

    In the Column Properties region, select the columns you would like to display, arrange them in the desired order, rename if needed and add totals where appropriate. You can also specify which columns should be used for sorting the bank account balance data.

    In the Search Query to Filter Data in your Table, enter the search criteria to fetch the bank account balance data. Please note that you must select at least either a Name or Account Number.

  4. Click Apply.

To view bank account balances online:

  1. Navigate to the Report Bank Account Balance Page.

  2. If you do not have any personalized views created, you will be taken to the Advanced Search page. In this case, enter the search criteria and click Go. The bank account balances will be displayed using the system default layout.

    If you already have at least one view created, you will be taken to the Views page. In this case, select a view name from the list and click Go. The bank account balances will be displayed using your personal layout.

Interest Rate Schedule

You can maintain interest rate schedules in Oracle Cash Management, if you have bank account balances that can earn interest rate or where the interest rate can be charged. Please note that, if you have bank accounts authorized for use in Oracle Treasury, you have to assign an interest rate schedule to such accounts before you can maintain their bank account balances.

Please also note that a separate function is available to allow the user to update only one attribute of the Interest Rate Schedule – the interest rates.

To create interest rate schedule:

  1. Navigate to the Interest Rate Schedules page.

  2. Click Create Schedule.

  3. Enter the schedule Name, select schedule Currency, Basis, Interest Rounding, and Day Count Basis. Note that you can also choose the value of the Interest Includes parameter if you choose to display it by personalizing the page. By default, the value of the Interest Includes parameter is taken as Last Day.

    Basis: This parameter defined if the same interest rate applies to the entire balance amount or of a different interest rate applies to different portions of the balance amount. The options are: Flat and Step. For example, if the selected option is Flat, the balance amount is 150,000 and you have the following rate structure.

    Rate Amount
    5% 0 to 100,000
    3% greater than 100,000

    The 3% interest rate will apply to the entire 150,000 balance amount. If the selected option is Step for the same balance amount and the same rate structure, the 5% interest rate will apply to the first 100,000 of the balance amount and the 3% interest rate will apply to the remaining 50,000 of the balance amount.

    Interest Rounding: This parameter defines how the calculated interest will be rounded to the currency precision. The options are: Nearest, Round Down, and Round Up. For example, let’s assume that the exact calculated interest amount is 100.1078 and the bank account currency precision allows only two decimals. If the selected option is Nearest, the interest amount will be rounded to 100.11. If the selected option is Round Down, the interest amount will be rounded to 100.10. If the selected option is Round Up, the interest amount will be rounded to 100.11.

    Day Count Basis: This convention defines the number of days in a year. The options are: Actual/Actual, Actual/360, and Actual/365.

    Interest Includes: This parameter defines the number of days in the calculation of the interest amount on the first available balance date. The options are: First Day, Last Day, and Both Days. For example, let’s assume that the first ever balance date for your bank account is March 1 and the next balance date is March 2. If the selected option is First Day, the number of days in the interest calculation between March 1 and March 2 will be one and it will be assumed to be accrued on March 1. If the selected option is Last Day, the number of days in the interest calculation between March 1 and March 2 will be one and it will be assumed to be accrued on March 2. If the selected option is Both Days, the number of days in the interest calculation between March 1 and March 2 will be two and it will be assumed to be accrued partially on March 1 and partially on March 2.

  4. Click Next.

  5. Enter the balance ranges (from lowest to highest) to which different rates will apply. A single range may not contain both positive and negative balances. In order to cover all possible balances:

    The number you enter in the High field increments by one (1) in the smallest precision of the schedule currency and serve as the Low value in the following row.

    The High field in your final range should not contain a value.

    By default, a balance range for negative and positive amounts is created automatically.

  6. Click Next.

  7. Enter the interest rates that will apply to the balance amount ranges you have defined in the previous step.

  8. Click Next.

  9. Click Assign Accounts and select bank accounts to which this interest rate schedule will apply.

  10. Click Finish.

To view interest rate schedule:

  1. Navigate to the Interest Rate Schedules page.

  2. Optionally, enter a part of the Interest Rate Schedule name in the Search region.

  3. Click Go.

  4. Click the name of the Interest Rate Schedule to view the details.

To maintain interest rate schedule:

  1. Navigate to the Interest Rate Schedules page.

  2. Optionally, enter a part of the Interest Rate Schedule name in the Search region.

  3. Click Go.

  4. Select the Interest Rate Schedule name and click Update icon.

  5. Modify details as necessary, including adding or removing bank accounts.

  6. Click Apply.

Interest Calculation

If you have interest rate schedules assigned to your bank accounts, you can use the online calculator to verify the interest amount the bank is charging you or paying to you. Please note that you can also calculate interest for Notional Cash Pools as well as stand-alone bank accounts.

To calculate bank account interest:

  1. Navigate to the Bank Account Interest page.

  2. Enter search criteria and click Go.

  3. Select one or more bank accounts and click Calculate Interest.

  4. Enter the date range, for which you want the interest to be calculated, and click Go.

  5. Enter the date range, for which you want the interest to be calculated, and click Go.

  6. Click the calculated Interest Amount to see the interest rates and balance amounts used in the calculation.