Setting Up Cash Management Bank Statement Accounting Functionality

Bank Statement Accounting Automatic Reconciliation

The Cash Management Bank Statement Accounting (BSA) functionality integrates with the PeopleSoft banks reconciliation functionality. The BSA functionality reduces the number of exceptions (NTFs) that you must resolve. It works in tandem with the PeopleSoft automatic reconciliation process and provides a second layer of filtering that automatically resolves reconciliation exceptions. To enable this functionality, you must first establish the conversion (or accounting) rules that the system uses to search for reconciliation exceptions.

The BSA functionality handles transactions in the bank statement that are not yet booked in the general ledger or a general ledger subledger. These items might include such first notice items such as interest income, interest expense, or forecasted wires.

BSA functionality uses information from the imported bank statement addenda text field. You first create rules to match text strings in the addenda text by selecting Pattern (matching a specified text string), Position (searching for text between two defined numeric values), or Value (matching a defined value). When the system encounters a match, processing automatically reconciles the exception by creating a system-side transaction that is assigned to an accounting template, and changes the exception's reconciliation status flag to REC (reconciled). Note that the system does not perform any BSA processing on exceptions that do not match any BSA predefined criteria. Also, the bank statement accounting process will not create a system-side transaction if the bank statement line had previously been matched to a system-side transaction. For example, if the bank-statement accounting process matches a previously reconciled transaction that was unreconciled using the semi-manual reconciliation process, it will not create a new transaction.

After the BSA resolved exception accounting entries are complete, you run Treasury Accounting processes to complete the accounting entries prior to posting to the general ledger.

The following are some points to consider about the BSA process:

• The process is only as good as the rules and accounting templates that you establish.

  Note: The automatically generated accounting entries are only as valid as the accounting rules that you establish. If the accounting rule or specified accounting template for a rule is incorrect, the accounting entries for all of the affected matched exceptions will also be incorrect. It is very important that you test the validity of your BSA data setup and output prior to using this functionality in a production environment.

• You can only use this functionality with the automatic reconciliation process.

• The BSA process greatly streamlines the reconciliation process, but reconciliation can not be fully automated. There will always be reconciliation exceptions that you must manually research and resolve.

• This process becomes increasingly efficient as the number of bank statements that you process increases. When you first implement the process, you must develop the rule structure—researching exceptions, editing rules, and adding new rules—until this structure is sufficiently constructed to handle your organization's exceptions.