Overview of Cash Positioning and Forecasting

The Oracle Cash Management Cash Positioning and Forecasting provide solutions to accurately report cash balances and position. This enables managers to make cash flows decisions such as investing and borrowing in a timely manner. It also effectively reports cash forecast information from different sources to help manage the cash requirements of the organization.

You have the flexibility to create detailed cash position and forecast reports by using SMART View and financial reports to meet reporting requirements. Use the setups in Oracle Functional Setup Manager to specify the requirements.

Sources and Scheduled Processes

You have visibility to a variety of sources available in the Essbase, such as invoices, receipts, and payment. Scheduled processes are designed to streamline the extraction and import of cash flow data from multiple applications such as:

• Oracle Accounts Payable (AP)

• Oracle Accounts Receivables (AR)

• Oracle Payroll

• Oracle Cash Management External Cash Transactions

• Cash Management Bank Statements

The following ESS programs are used to create your cash position:

• Cash Position Data Extraction: This program streamlines the extraction of data from all relevant sources. The Extraction Duration defined in the Specify Cash Positioning and Forecasting Options is used to get historical data. Submitting the program locks the following setup pages for Cash Positioning and Forecasting::

  • Specify Cash Positioning and Forecasting Options

  • Manage Cash Positioning and Forecasting Transaction Grouping

  All future system transactions will be stored in the cube.

• Cash Position Data Transfer: This program automatically runs after a successful extraction takes place. It maintains the Essbase cubes, keeping the data in sync with the transaction data from different applications. The following results in successful extraction:

  • It maintains the Essbase cubes, keeping the data in sync with the transaction data from different applications.

  • Converts amounts in all four currencies stored in the cubes:

  1. Transaction

  2. Ledger

  3. Bank Account

  4. Reporting

• Cash Position Data Deletion: Use this program to delete the cube prior to making changes to configure the dimensions or reporting options. The following occurs:

  • Deletes data from the interface tables.

  • Deletes the Cash Positioning cubes.

  • Unlocks the Specify Cash Positioning and Forecasting Options and the Manage Cash Positioning and Forecasting Transaction Grouping setup pages for Cash Positioning and Forecast:

Troubleshooting Conversion Rates

Warning Status:

1. Review the failed transactions reported in the ValidationErrors.txt log file.

2. Enter or correct the conversion rates for the failed transactions.

3. Resubmit the Cash Position Extraction Job process.

4. Review the status for the Cash Position Data Extraction and the Cash Position Data Transfer processes.

5. Review log files for any further warnings or errors.

Bank Statements

• If conversion rate isn't defined for a specific bank statement date or booking date, the application searches going back up to 1 year to find the closest conversion rate to use.

• For converting the bank account amount to the ledger amount, the application uses the Accounting Conversion Rate Type (GL_CUR_EXCHANGE_RATE_TYPE) defined in the bank account setup for the corresponding bank account.

• For converting the bank account amount to the reporting amount, the application uses the default conversion type defined at Currency Rates Manager.

System Transactions

• If the conversion rate isn't defined for a specific transaction date, the application searches going back, up to 1 year to find the closest conversion rate.

• For converting the transaction amount to the bank account amount the applications uses the Bank Conversion Rate Type (BANK_EXCHANGE_RATE_TYPE) from the bank account that corresponds to the transaction used.

• For converting the transaction amount to the ledger amount, the application uses the conversion rate defined for the transaction.

• For converting the transaction amount to the reporting amount, the application uses the default conversion type defined in the Currency Rates Manager.

Note:

If the rate can't be found, the default conversion type defined in the Currency Rates Manager is used.

Cash Positioning and Forecasting Solution Components

The following is used to create your cash position and forecast:

• Essbase cube: This component stores the actual transaction data sources such as AP payments, AR receipts, and Payroll payments. This multidimensional database application stores the actual application data; bank statements and transactions. The following dimensions are delivered by Cash Management: Bank, Legal Entity, Currency, Currency Type, Transaction Type, Source of the Transaction (Bank Statements, AP Invoices, AP Overdue Invoices, AP Payments, AR Invoices, AR Overdue Invoices, AR Receipts, Payroll, and External Transactions), Reconciliation Status of the transaction, Time, and Flow indicator for the bank statement line.

• SMART View and Excel: Is used to view the generated cash positioning and forecasting reports. You can drill down to view the transaction details by selecting the data cell from SMART View. The drill through is available from specified individual data cells. Cash Management delivers predefined drill through reports, but you have the ability to create your own.

  Note:

  To run Cash Position reports successfully, install a Smart View plugin later than the 11.1.2.5.500 version on the certified browsers Internet Explorer or Firefox.

• Interface tables: Are created to allow the extraction of data from the various sources before transferring them to the Essbase cube.

• ADF User Interface: The Bank Statement page enable view both intraday and prior-day bank statements.

• ESS Job: The program is created to support loading of data from different sources to the Essbase cube. Sources such as the bank statement and transactions from AP payments, AR receipts, and Payroll payments. The existing Bank statement loader and import program supports loading and importing prior and intraday bank statements.

Setups in Functional Setup Manager

Specify Cash Positioning and Forecasting Options

You define the extraction duration of the transaction data in Essbase. You can also define reporting options such as:

• the currency for cash balances.

• the balance code to use from the bank statement in cash balances.

Manage Cash Positioning and Forecasting Transaction Grouping Setup

You create transaction grouping (transaction cube dimensions). You can create configurable dimensions to the transaction cube, in addition to the core dimensions delivered by Cash Management.

• The configurable dimensions are available in Smart View for you to build configurable reports.

• Dimensions available out of the box include Bank, Legal Entity, Currency, Currency Type, Transaction Type, Source of the Transaction (Bank Statements, AP Invoices, Payroll, AP Payments, AR Invoices, AR Receipts, External Transactions), Reconciliation Status of the transaction, Time, and Flow indicator for the bank statement line.

• Design your configurable cube dimensions to meet the different reporting requirements for your organization.