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

This chapter covers the following topics:

Bank Account Transfers

Bank account transfers represent fund transfers between internal bank accounts. You can create bank account transfers manually or automatically through Cash Leveling process (see Cash Positioning section for more details) and/or Sweep Transactions Generation concurrent program. The access to bank account transfer creation for a particular legal entity is subject to bank account use security. The bank account transfers are reflected in Cash Position automatically. Payment processing for bank account transfers is managed using Oracle Payments. Journal entries are created through a centralized subledger accounting engine.

The following bank account transfers are supported from the point of view of bank account ownership:

  1. Intra-Company Transfers

    Intra-company transfers represent cash transfers between two internal bank accounts that belong to the same legal entity.

  2. Inter-Company Transfers

    Inter-company transfers represent cash transfers between two internal bank accounts that belong to two different legal entities. In case of such transfers, the system can produce balanced journal entries for both legal entities.

The following bank account transfers are supported from the point of view of transfer currency:

  1. Domestic

    The currency of both bank accounts and the transfer amount is the same. For example, you are transferring USD between two bank accounts that are denominated in USD.

  2. International

    The currency of one bank account is the same as the currency of the transfer amount but the currency of the other bank account is different. For example, you are transferring USD from a bank account denominated in USD to the bank account denominated in EUR.

The following scenarios are not supported in Cash Management for Bank Account Transfers:

Scenario Functional Currency Bank Account Currency Transaction Currency
1 USD CAD EUR
2 USD CAD USD

Define Cash-in-Transit Account

You can define Cash-In-Transit account by defining Intracompany Rule for same Debit And Credit BSV with same Debit and Credit account, for clearing of Bank Account Transfers within the same BSV.

A Sample Cash-In-Transit account for BSV 001 would be as below:

Debit BSV Credit BSV Debit Account Credit Account
001 001 001.100.200.000 001.100.200.000

Similarly you can define cash-in-transit account for all the BSV's.

Note: You can create a cash-in-transit account only under the 'Cash Management' source and 'Bank Transfers(1)' category.

Payment Templates

Payment templates allow defining reusable sets of bank account transfer attributes and payment processing options. During bank account transfer creation you have an option to select a payment template. If you do so, all the attributes of the payment template will default into the bank account transfer.

If you are using repetitive payment codes or repetitive wire codes, you can define those as payment templates.

To Create a Payment Template:

  1. Navigate to the Payment Templates page.

  2. Click Create.

  3. Enter payment template attributes on General Details and Payment Details tabs. Select attributes are explained below.

  4. Click Apply.

To Update a Payment Template:

  1. Navigate to the Payment Templates page.

  2. Enter search parameters and click Go.

  3. Select the payment template and click Update.

  4. Update payment template attributes as necessary. If you want to disable the payment template and prevent the users from using it in the future, set the Status to Inactive.

  5. Click Apply.

Creating Bank Account Transfers Manually

To Create a Bank Account Transfer

  1. Navigate to the Bank Account Transfers page.

  2. Click Create.

  3. Enter bank account transfer properties. Please note that if you select a payment template, the bank account transfer attributes defined at the template level will default in automatically. Select attributes are explained below.

  4. Click Apply. The bank account transfer is saved with status New. If you would like to validate the bank account transfer at the same time as saving it, click Apply and Validate instead of Apply. Please note that the bank account transfer will be available for further processing (manual authorization, payment and journal creation) only after it has been validated.

Manual Authorization Required? Settlement through Oracle Payments Required? Bank Account Transfer Status after Successful Validation Bank Account Transfer Status after Manual Authorization Settlement in Process Settled
Yes Yes Validated Settlement in process
Yes No Validated Settled
No Yes Settlement in process  
No No Settled  

To Validate a Bank Account Transfer

  1. Navigate to the Bank Account Transfers page.

  2. Enter search criteria and click Go.

  3. Select a bank account transfer and click Validate. Please note that the Validate icon is enabled only for bank account transfers in status New or Invalid.

Viewing, Updating, and Canceling Bank Account Transfers

To View a Bank Account Transfer

  1. Navigate to the Bank Account Transfers page.

  2. Enter search criteria and click Go.

  3. The bank account transfer status can be one of the following:

To Update a Bank Account Transfer

  1. Navigate to the Bank Account Transfers page.

  2. Enter search criteria and click Go.

  3. Select bank account transfer and click Update.

    Note: The Update icon is enabled only for bank account transfers in status New, Validated, Invalid, or Rejected.

  4. Modify bank account transfer attributes.

  5. Click Apply. The changes saved. If you would like to validate the bank account transfer at the same time as saving the changes, click Apply and Validate instead of Apply. If the validation is successful, the bank account transfer is saved with Validated status.

To Cancel a Bank Account Transfers

  1. Navigate to the Bank Account Transfers page.

  2. Enter search criteria and click Go.

  3. Select bank account transfer and click Cancel. The Cancel icon is disabled for bank account transfers in status Settled if at least one underlying cash flow is cleared or reconciled

If a bank account transfer requires settlement through Oracle Payments and the status of the transfer is Settlement in Process or Settled, canceling the bank account transfer will not stop or reverse payment processing in Oracle Payments. The user will have to switch to Oracle Payments and manually stop the payment process or cancel the payment.

Authorizing Bank Account Transfers

Authorization

If you would like another user to approve the bank account transfer before it is processed for payment and/or journalized, you can set up the system parameter to required manual bank account transfer authorization. Bank account transfer authorization is a completely separate function from bank account transfer update.

To Authorize a Bank Account Transfer

  1. Navigate to the Bank Account Transfer Authorization page.

  2. The list of bank account transfers awaiting your authorization is displayed. This list is subject to bank account use security.

  3. Select transfers and click Authorize Transfers. If it requires payment processing, it will now be automatically sent to Oracle Payments. If it does not require payment processing, it will now be available for journal creation.

  4. If you would like to reject the transfer, click on Reject Transfers instead.

Processing Payments

Bank Account Transfer Payments

Bank account transfer payment instructions can be communicated to the bank electronically through Oracle Payments. When a bank account transfer that requires settlement is authorized in Oracle Cash Management, a payment process request is automatically created in Oracle Payments. For more details on payment instruction creation and bank communication, see: Understanding Funds Capture Bank Account Transfers, Oracle Payments User Guide.

If the payment is successfully processed in Oracle Payments, the status of the bank account transfer will be automatically set to Settled. If the payment is not successfully processed, the status of the bank account transfer will be automatically set to Failed and may require the user's intervention to recreate the transfer.

Generating Accounting Entries

Create Accounting

Bank account transfers can be posted to Oracle General Ledger through the centralized subledger accounting engine by running Create Accounting concurrent program. See the program description and Subledger Accounting section for more details.

Bank account transfers that require settlement in Oracle Payments are available for journal creation when their status is set to Settlement in Process. Bank account transfers that do not require settlement in Oracle Payments are available for journal creation when their status is set to Settled. This corresponds to Bank Account Transfer Created accounting event type in the Bank Account Transfers event class. Additional event types are created in the system when the bank account transfer is canceled or when the related cash flows are cleared or un-cleared.

Cashflows

Cashflows

You can use Cashflows window to view the detail of existing cashflows or to cancel the cashflows. Cashflows are available for clearing and reconciliation. Clearing cashflows will generate accounting entries through Subledger Accounting. See Subledger Accounting chapter in this document for more information. Cashflows also can be included in Cash Positioning as a positioning source.

Cashflows can be created from the following programs:

Each cashflow is designed to produce a balanced journal, with a debit and credit journal entry. Cashflows are also used in clearing and reconciliation. Cashflows can be included in Cash Positioning as inflow and outflow sources.

To Query Cashflows:

  1. Navigate to Cashflows window. From the navigator, choose Cash Transactions > Cashflows.

  2. Enter the criteria for the cashflows you want to query and click Go

Cashflows Window Reference

Result Table Region

For the cashflows with Bank Account Transfer transaction type, inflow means that the counterparty bank account is funding bank account whereas the cashflow bank account is beneficiary bank account. On the other hand, outflow means that the cashflow bank account is funding bank account whereas the counterparty bank account is beneficiary bank account. For the cashflows with Statement Line transaction type, inflow means that the cashflow bank account is beneficiary bank account that receives fund from the GL account specified in Bank Statement Cashflow Mapping. On the other hand, outflow means that the cashflow bank account is funding bank account that sends fund to the GL account specified in Bank Statement Cashflow Mapping.

Cashflow Detail Region

Header Section:

General Information Section:

Bank Account Section:

Counterparty Bank Account Section:

Clearing Information Section:

Accounting Information Section:

Accounting Status

View Accounting Details:

This opens up accounting detail page.

Bank Statement Cashflows Mapping

You can define mapping rules for the creation of cashflows from your bank account files in the Bank Statement Cashflow Mappings window, and these cashflows can be accounted for and reconciled in Oracle Cash Management.

To Create Bank Statement Cashflow Mappings:

  1. Navigate to the Bank Statement Cashflow Mappings window and select the bank account for which you wish to define cashflow mapping rules.

  2. Enter the bank transaction code or select from the list of values. Note: You will only be able to set up rules for codes which have been previously defined in the Bank Statement Transaction Codes window. For more information, see: Bank Statement Transaction Codes.

  3. (Optional) Enter a search string. The search strings are used for pattern matches with the information in the description field of the bank statement line.

  4. Enter the GL Account Number which will be used to record the receipt or expense. The cash GL Account Number will be derived from the bank accounts cash GL Account defined in the General Controls.

  5. (Optional) Enter the Reference information. This can be used for reporting purposes and will be included in the journal entry associated with the created cashflow.

  6. (Optional) Select a Transaction Subtype. For more information, see: Transaction Subtypes.

Proceed to Creating Cashflows from a bank statement file.

To Create Cashflows from Bank Statement Files:

  1. Load and import the bank statement. For more information, see: Importing Bank Statements.

  2. Run the AutoReconciliation program for the bank statement. For more information, see: Reconciling Bank Statements Automatically.

    Note: To avoid creating cashflows for transactions already recorded in your systems, it is recommended that you run the AutoReconciliation program or manually reconcile for the bank statement prior to running the Bank Statement Cashflow Creation program.

  3. Run the Bank Statement Cashflow Creation program for the bank statement to create cash management cashflows.

    Note: The program does not apply the mapping rules to reconciled bank statement lines or bank statement lines for which cashflows have been created in the past unless the cashflow has been cancelled.

    A cashflow will be created and an accounting event raised if a match as specified in the Bank Statement Cashflow Mappings window for the bank account is found.

    The program automatically generates the Bank Statement Cashflow Creation Execution Report, which lists all of the details of the created cashflows. For more information, see: Bank Statement Cashflow Creation Execution Report.

  4. You can account for these cashflows in your subledger by running the create accounting program. For more information, see: Subledger Accounting (SLA) IntroductionSubledger Accounting section.

    Note: Cashflows created from bank statements are created in a cleared status because by nature they have already cleared the bank. These cashflows can not be uncleared, but if they have not been reconciled they can be canceled.

  5. Run the AutoReconciliation program for the bank statement to reconcile the cashflows that were created.

Bank Statement Cashflow Mappings Window Reference

Bank Account Region