Setups and Transactions for Cash Management Module

By Rohit Daswani

Contents

1) Cash Management Setups

2) Manual Reconciliation Transactions for Check Transfer

3) Auto Reconciliation Transaction

4) Cash Management Manual Transactions for Non-Check Transfer

5) Interbank Transfer Setup

6) Interbank Transfer Transaction

 Cash Management Setups

1) Assign Legal Entities to the Cash Management responsibility

Log in as Sysadmin user.

Go to the User Management Responsibility->Roles & Role Inheritance.

In the Type field select Roles and Responsibilities.

After this a new field appears and the user can see the category field, please select Miscellaneous.

In the Application select Cash Management and click on GO button.

In the new webpage that appears, search your Cash Management responsibility or role that you are using to create
your bank account. Then click on the Update icon.

A new window will be displayed as below:

Please click in the Security wizard button.

In this new Page for CE UMX Security wizard click on Run Wizard.

This takes us to a new web page where you should add the legal entities that you want to have access to. This will
grant access to all the bank accounts within the legal entity. Choose the privileges that you want to assign to this role
on the bank accounts: USE, MAINTENANCE and BANK ACCOUNT TRANSFERS.
Then Save and Apply the changes.

2)System Setups

Navigate to Cash Management-> Setup-> System->System Parameters.

Press CTRL+F11, then press the down arrow key or PG down till we get the desired Operating Unit:
Then, Enter the following:

Legal Entity as Vision Operations

Ledger as Vision Operation (USA)

Enable Show Cleared Transactions

Show Void Payments

Allow Adding Lines to Imported Statements

Purge

Choose Signing Authority Approval as Workflow Enabled and switch to Cash Management Transactions tab

This is shown in the below image:

Once Done Click on Cash Management Transactions Tab. Enter the Following:

Choose

Exchange Rate Type as Corporate

Bank Statement Cashflow Rate Date as CashFlow Date

Bank Transfer Rate Date as Transfer Date

Choose Authorisation as Not Required and save the Java Form.

This is shown below:

Once done click on Save.

3) Bank Setup

Navigate to Cash Management ->Setup-> Banks-> Banks

The below web page is displayed:

From the above screen click on Create button. This takes us to the a new Bank Information page.

Now enter the details as follows:

Country: United States

Bank Name: My Vision Bank

Alternate Bank Name: MVB

Bank Number: RSD073

This is show in the image below:

Then Click Save and Next.

Give the bank address details as below:

Country: ..

Address Line1:

State: .

Status: Active

This is shown below:

Click on Apply.

On the next page that appears below, click Save and Next.
Once we save the bank details, Oracle takes us to a page where we have to create a contact. For this give the details as
below:

Prefix:

First Name: .

Middle Name:

Last Name: .

Name Initials: ..

Start Date: .

Select the appropriate Job Title and Job Title Code

This is shown below:

Once done click on Finish.

On the next web page select the contact name and click on Finish.
Next we need to create a bank branch.

For this click on Create Branch in the above confirmation page.

(or Navigate to Cash Management-> Setup->Banks. Search for the appropriate bank and click on Create Branch )

Give the below details:

Country and Bank Name and click on continue.

Select Create new Branch, Give the Branch Name and Branch Type

Click on Save and Next which takes us to the below confirmation page.

3) Create Bank Account.

Click on Create Account to create bank account from the above webpage if required.

Alternatively, user can also create a bank account later as shown below:

Navigate to Cash Management -> Banks->Bank Accounts

Enter the

Country, Bank Name and Branch Name as below. Then click on Continue.

In the next web page give thefollowing details:

Bank Account Owner: (Name of the Legal Entity). For Account Use checkmark Payables and Receivables.
Click Next.

In the page that opens as shown below enter the following details

Account Name as Vision_MVB_Malay

Account Number as 149097899

Currency as USD

Enable Multiple Currencies Allowed

This is shown below.

Again click on Save and Next. In the Account Controls page that opens give the below details:

Enter:

Cash Account as

Bank Charges Account as ..

Cash Clearing Account as .

Foreign Exchange charge Accounts as .

This is shown below:

Scroll down and check mark Allow Zero Payments click on save and next.

Then again in the below confirmation page that appears click on Save and Next.
Click on Add Organization Access and in the next page enter as below:

Check mark Payables and Receivables and for Organizarion enter Vision Operations.

Once done click continue.

We are again directed to a confirmation page wherein we click on Save and Next.
In the next page we get a confirmation that anew bank account has been created.

4) Setup Payment Documents

Navigate to Cash Management-> Setup -> Bank Accounts

Query for the bank account created by giving the Account Name Branch Name. Then click on Search.

In the page that appears select the account and click on Manage Payment Documents.

Click on Create.

Enter the following details

Name as Vision Operations Malaysia Practice Document

Paper Stock Type as Prenumbered Stock

 Format as Standard Check Format

First Available Document No as 1

Last Available Document No. as 9999999999999

and click on Apply. This is given below:

This payment document is used to pay the invoice through the banks. Here we define what kind of paper stock type to
use for check leaves and the no of leaves (like in a checkbook), If u go to payable workbench if u try to pay for that
invoice payables reserve one document .We will define this payment documents when we are defining Banks.

Use this window to define payment documents for your Internal bank accounts in Oracle Payables. Note that you do
not need to define payment documents for refunds because refunds do not use payment documents. ult

A popular default Payment Document is Check Positive Pay.

Confirmation page appears.

5) Bank Transaction Codes

To setup the bank transaction codes navigate to Cash Management->Banks->Bank Transactions Codes
Select the appropriate bank account as shown above.

In the page that appears give the details as in the below image. Note that the Trans Source for any of them is either
AP Payments or AP Receipts.
Give the Details for the same as above.

Cash Management Transactions for Check Transfer

Cash Management Statement and Reconciliation Transaction for Payables Invoice.

1) First Create a Payables Invoice

Navigate to Payables Manager-> Invoices-> Invoices

Enter the Following:

Operating Unit: Vision Operations

Type: Standard

Trading Partner: Agile Electronics

Supplier No. and Supplier Site: Choose Default

Invoice Date: Since it is a practice transaction we input an earlier date 05-Mar-2017 Invoice Number
:INV050320171, Invoice amount: 20,000

Gl Date: Same as Invoice Date, 05/Mar/2017, Distribution Set : Equipment Expenses (Full)
Terms Date: same as above, Terms: Immediate

Payment Method: Check

Once done enter the same details at the line level of the invoice.
Give thee

Type as Item,

Amount same as header level,

GL Date in the line should be same as the transaction date at the header level i.e 05-MAR-2017.

In the same line level tab, click on Distribution. This takes us to the below form.

We can see that the 25000 is split as per the distribution set. This is because of the distribution set selected earlier.

Close the above form and return to the invoices form.

Then click on Actions tab once again and click on Create Accounting (Final) for the invoice and then click on
OK.

2) Next we create a payment for the invoice.

For this go to Actions tab and click on Pay in full and click on OK.

In the page that appears enter the details as below:

Payment type can be anything. The Trading Partner is defaulted so is Supplier number, Supplier Site

Enter the following

Payment Date as 5 Mar 2017,

Bank Account as Vision_MVB_Malay,

Payment Method: Check ults and Payment Document as Malaysia Payment Document.

The Payment Process Profile should be Standard Check Format. Enter the document number as 1. Save the
same. Note the accounting is Unprocessed.

The document number is the check number through which we are making the payment in standard check format.

In the same form click on Action tab and then click on Create Accounting (Final) for the payment.
Now the accounting changes to Processed. Also note that the Status remains Negotiable before accounting as well
as after accounting.

Query for the same invoice in the invoices work bench to verify accounting status and amount paid.

This is shown below:

Note that the amount is paid for this invoice.

3) Creating a bank statement

Create a bank statement for the above transaction and perform reconciliation.

Navigate to Cash Management-> Bank Statements-> Bank Statements and Reconciliation

In the Find Bank Statements form click on New. A bank statement form opens.
In this new form enter the Account Number as 149097899, Account name as Vision_MVB_Malay. Enter the
Statement Number as 08-MAR-2017_1.

Note that the Invoice Date must be lesser than Bank Statement Date.

Once done click on Lines tab in the same form.

(Important: Please note that the statement date must be before todays date. If we enter a greater date systems
shows an error.)

That is the reason why when we entered the invoice in the previous step we entered it for a date before today.

In this new Lines form enter the Line Number as 1, Code as 100 since that is the bank code defined earlier for
AP payments, Number(Which is nothing but the check number or document number) as 1 and the amount of the
invoice 26,725. The Status should remain Unreconciled.
Click on the Available tab in the bottom of the page. In the new Find Transaction form select Detail and AP
Payment and in the Transaction tab enter the Invoice Numbers.

Then click on Find.

This leads us to the below Available Transactions form:

It can be seen that the Status is Negotiable.

Check the line and click on Reconcile at the bottom of the page.

Once done we can see that the we go back to the Bank Statement Lines form .
We can see that the Amount reconciled is 26743.75 and the Status is Reconciled.

We can verify the same whenever we want by navigating to Banks Statements and Reconciliation form again and
then give the Statement Number and click on Find.

In the new Bank Statement form click on Review tab and then click on Lines tab. This is seen as below.
Thus the Bank statement has been reconciled.

The same can be verified by going to Payables Manager-> Payments->Entry->Payments.

Query with trading partner and the document number. The status is Reconciled Unaccounted.

Click on Actions and this time select Create Accounting (Final Post).
It can be seen that the Status of the payment changes to Reconciled. The status for Accounting changes to
Partial. By Creating Accounting for the same the Status will change to Reconciled
 Auto Reconciliation Transaction

Step1) Create an Invoice and make the payment

For Auto-Reconciliation first start with creating a payables invoice. For this follow the same steps as above for
creating an invoice. Note that the method of payment is Check. Enter the details for the details at the line level and
header level as in the previous steps. Save the invoice, validate it and, Create Accounting (Final) for the same.

Note that the invoice number is INV_INV050320173

Next again create the payment in the same manner as above. Note that the bank account is Vision_MVB_Malay, the
Payment Method is Check, Payment Document is Malaysia Payment Document, Payment Process Profile
is Standard Check Format and Document Number is 4.
Save the invoice and Create Accounting (Final) for the same.

Step 2) Create a Bank Statement

Now enter bank statement and perform reconciliation. Navigate to Cash Management->Bank Statements->Bank
statement and reconciliation.

Create the bank statement as in the above steps. Note that the bank statement date must be lesser than today but
greater than the AP invoice date. Statement number is 12-MAR-2017_1.

We follow the same steps for entering the bank statement line.

However after entering and saving the bank statement line we do not go for manual reconciliation by clicking on
Available tab.

Instead we submit the AutoReconciliation Program.

Step 3) Reconcile through AutoReconciliation Program

Instead follow the below steps:

Note that the status of the line above is unreconciled.

Close the forms and navigate to Program->Request. Choose Single Request and enter AutoReconciliation.

Enter the Parameters as below: (This is geiven in the image above).

Bank Branch name: Malay_Branch

Bank Account Number: 149097899

Statement Number From and To: 12-Mar-2017_1

Statement Date From and To: 12 Mar 2017

GL Date: 12-Mar-2017

Submit the request.

The AutoReconciliation program triggers the AutoReconciliation Execution Report program. (As seen below)
Wait for the programs to be completed

Now navigate to the Bank Statement and Reconciliation Form again.

In the Find Bank Statements Form click enter the statement number and click on find.

Click on Find. Then in the new form click on Review tab. In the Bank Statement form click on Lines. As can
be seen below the line is Reconciled. This can be seen from the Status.

Now navigate to Payables Manager->Payments->Payments. Query for the payment document. It can be seen that the
status is Reconciled Unaccounted and the Accounting is Partial. Just like in manual reconciliation.
As in manual reconciliation, Create Accounting Final Post.

The status changes to Reconciled and the accounting changes to Processed.

 Cash Management Transactions for Non-Check Transfer

Bank Statement Reconciliation when Payment Method is Wire Transfer

Step 1) Create an AP Invoice

Create an AP Invoice Using the details as above except for Payment Method which should be Wire. This is shown
below

Validate and Create Accounting (Final) for the same.

Next click on Actions and Select Pay in Full and Click on OK.
A new Payments Form opens wherein we fill in the details for the following particulars just as it was done below:

Enter the following

Payment Date as

Bank Account as

Payment Method: Wireand Payment Document as Malaysia Payment Document.

The Payment Process Profile should be Standard Check Format. Enter the document number as 5. Save the
same. Note the accounting is Unprocessed.

The document number is the wire number.

This is shown below:

Step 2) Create a Bank Statement

Now navigate to Casch Management-> ->Bank Statements and Reconciliation.

Click on New in the the Find Bank Statements Form.

In the new Bank Statement form give the date and GL date and give the statement number as 13-MAR-2017_1.

Click on Lines. Give the details for the lines as below:

Type as Payment, Code as 100, Number as 5, Transaction Date and Value Date as 13-Mar-2017 and the
Amount as 21380. Note that the Status is Unreconciled.

Step 3) Reconciliation

In the Bank Statements Lines Form click on Available and query for AP Payments.
Just as before Check mark the Line in this form which is associated with the invoice created and click on Reconcile.

Once done we can see that the status changes to Reconciled. This is shown below.

Now, navigate back to Payables Manager and check the payment status as well as create final accounting and post it.

Bank Statement Reconciliation when Payment Method is Electronic.

Step 1) Create an Invoice

Create an Invoice in Accounts Payable where in the Payment Method chosen is Electronic. All the other details
should be the same as before.
Note the Invoice number is INV_15032017.

Note that once the Payment Method is chosen as Electronic, the Remit-to Bank Account Name and the Remit-to Bank
Account Number fields are automatically populated. This is the bank account details of the suppliers bank.

Save the invoice, validate and create accounting for the same.

Once that is done click on Actions tab-> Pay in full. Now once again enter the details as before except for the
Payment Method which should be Electronic, and select the Payment Process Profile as SWIFT MT103 .

This is can be seen below:

Note that the Document Number is automatically populated. Also Note that the Remit to Account number is also
given.

Note the document number as 19342.

Save the document and create accounting for the same.

Step 2) Create a Bank Statement

Now navigate to Casch Management-> ->Bank Statements and Reconciliation.

Click on New in the the Find Bank Statements Form.

In the new Bank Statement form give the date and GL date and give the statement number as 14-MAR-2017_1.

Click on Lines. Give the details for the lines as below:

Note that the Number field should be the electronic payment document number that is 19342, and the transaction and
value date are same as invoice number i.e 10-Mar-2017.

3) Perform Reconciliation.

Now in order to perform reconciliation click on Available tab in the bottom of the page.

In the Bank Statements Lines Form click on Available and query for AP Payments.

Just as before Check mark the Line in this form which is associated with the invoice created and click on Reconcile.

Once done we can see that the status changes to Reconciled. This is shown below.
Now, navigate back to Payables Manager and check the payment status as well as create final accounting and post it.

Note that the status of the payment after accounting should be reconciled as below:
 Interbank Transfer Setup

Step 1) Setup System Options

Navigate to Intercompany Super User-> Setup-> System Options

In the webpage that opens, navigate to Setup-> Accounting Tab.

In the left hand tab click on Intercompany Accounts.

We get the below web page:

In the above page query for the Transacting Legel Entity as Vision Operations and the Transacting Ledger as
Vision Operations (USA). Click on Go.
We get the following results.

For the row Transacting Balancing Segment Value All Other, click on Update. This takes us to the below Update
Intercompany Accounts Page.

Click on Define Accounts for the All Other row. This takes us to the below page.

In the new page that appears enter the Intercompany Receivables accounts and the Intercompany Payables Accounts,
if not entered already.

Give a start date for both.

Click on Apply for the same.

Now click on Intracompany Balancing Rules tab on the left in the home page. Query up with the ledger and click on
Go.
Click on Create in the above page to create a new row for row Cash Management-Bank Transfers.

In the page that appears we can create rules in the Create Intracompany Balancing Rules region.

Give the name of the ledger as Vision Operations (USA), the Source as Cash Management, the Category as Bank
Transfers(1) . Below in the Balancing Deatils tab give the Debit Balancing Segment Value and the Credit
Balancing Value as All Other.

Give the Debit Account as 01-000-1810-0000-000 and the Credit Account as 01-000-2370-0000-000.

Click on the Options Tab.

For Level of Summarization: Summary Net

For Clearing Balancing Segment Value: Use for Many-to-Many Journals Only
And Default Options: Manually Entered Clearing Balancing Segment Value

This is shown below:

Click on apply.

We can see that a new set of intracompany balancing rules called Cash Management-Bank Transfers(1) has been
created.

Now click on Organizations tab. Query for the organization Vision Operations. Make sure that it is active and enabled.
2) Payment Template Setup

Now navigate to Cash Management-> Setup-.> System-> Payment Template. This takes us to the below page:

Click on Create to create a new template.

In the Update Payment Template code enter the following:

Template Code: I/C TransCode

Currency: USD

The Bank Account Numbers for source: 149097899

The Bank Account Numbers for Destination: 839749280014

Make sure that the Authorize Transaction and Settle Transaction Options are set to No.

The rest of the details as below:

Save the same. Click on Payment Details.

Do not enter any details on this page. Make sure that the Payment Method is Null.
 Interbank Transfer Transaction

Now Navigate to Cash management-> Bank Account Transfers

In the new Bank Account Transfers Page click on Create.

This takes to the Create Bank Account Transfer Page:

In this page select the payment Template as I/c TransCode, Bank Reference Number as Manual-12345

The Transfer date as 16-Mar 2017 Currency as USD Transfer Amount as 1000.
In the above make sure that the settlemen thru oracle payments is no and transfer date is = or > todays date.

Click on Apply.

We are again taken back to the main page where we can query the transaction with the Bank Reference number ad
click on go.

The search result is displayed as below:

We can see from the image above that the system has allocated a transfer Number to the transaction which is 1.
Transaction has a status of new.

Click on Validate to validate and complete the transfer. The bank account transfer is successful and this can be seen
below:

In the above page by clicking on the transaction number 1 takes us to a new page.
This new page above has the details of the transaction for our confirmation. We can also click on View Cashflows
tab to understand the movement of cash between the payee organization and the payer organization. This is shown
below:

Click on the home page to go back to the menu.

Next Navigate to Cash Management-> Bank Statement-> Manual Clearing-> Clear Transactions.
In the above Find Transaction Form that opens Query with the Account Number.

A new Clear Transactions form appears. This form has the details of the interbank transfer done from Vision
Operations Bank MyVisionBank.

Check and verify the details. Once done checkmark the transaction and click on Clear Transaction tab at the bottom of
the page.

Now once again navigate bank to find the account for the receiving bank.

Navigate to Cash Management-> Bank Statement-> Manual Clearing-> Clear Transactions.

In the above Find Transaction Form that opens Query with the Account Number.

A new Clear Transactions form appears. This form has the details of the interbank transfer for Bank of America bank
account.

This is shown below:

Check and verify the details. Once done checkmark the transaction and click on Clear Transaction tab at the bottom of
the page. Now once again done run the Create Accounting concurrent program to create accounting for the above
reconciliations.
Terms and Terminology in Oracle Cash management:

Document Payable. A document to be paid by the deploying company (Payer) and it may represent,

for example, a Payables invoice or scheduled payment.

Pay Run/Payment Process Request. A pay run is a broad term, which describes the process by

which a group of invoices is selected and processed for payment. It is roughly equivalent to the Release

11i concept of a payment batch. The term Pay Run is often used interchangeably with the term

Payment Process Request. A payment process request is technically a request created by a source

product for Oracle Payments payment services. The payment process request, which originates in the

source product during the invoice selection process, contains one or more documents payable to be

paid. During the payment process, the documents payable in the payment process request are built

into payments.

Payee. The person or organization that is being paid, for example, the supplier, employee, or customer

to whom the payment is made.

Payment Instruction. A payment instruction is a collection of payments, along with aggregate

payment information, that is formatted. Depending on the setup, a payment instruction may be

converted into a file to be printed onto checks or into a payment file that is transmitted to a payment

system for further processing and disbursement.

Payment Process Profile. A payment process profile is a payment attribute assigned to documents

payable, which specifies handling of the documents payable, payments, and payment instructions.

Payment process profiles including specifications for payment instruction formatting and transmission.

Payment process profiles contain the following information:

* payment instruction formatting information

* transmission information

* payment grouping

* payment limits
* payment sorting details