Setups and Transactions for Cash Management Module By Rohit Daswani Contents 1) Cash Management Setups 2) Manual Reconciliation Transactions for Check Transfer ) !uto Reconciliation Transaction Transaction ") Cash Management Manual Transactions for #on$Check Transfer %) &nter'ank Transfer Setup () &nter'ank 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 Type ield select Roles and Responsibilities. !ter this a ne" ield appears and the user can see the category ield# please select $Miscellaneous%.
In the !pplication select 'ash Management( and clic) on G* button.
In the ne" "ebpage that appears# search your 'ash Management responsibility or role that you are using to create your ban) account. Then clic) on the Update icon. ! ne" "indo" "ill be displayed as belo"+
,lease clic) in the Security "iard button.
In this ne" ,age or ' UM/ Security "iard clic) on Run 0iard. 0iard. This ta)es us to a ne" "eb page "here you should add the legal entities that you "ant to ha1e access to. This "ill grant access to all the ban) accounts "ithin the legal entity. 'hoose the pri1ileges that you "ant to assign to this role on the ban) accounts+ US# M!I2T2!2' and 3!24 !''*U2T TR!2S5RS.
Then $Sa1e and !pply% the changes.
2)System Setups
2a1igate to 'ash Management-> Setup-> System->System ,arameters.
,ress 'TRL6577# then press the do"n arro" )ey or ,G do"n till "e get the desired *perating Unit+
Then# nter the ollo"ing+ Legal ntity as $8ision *perations% Ledger as $8ision *peration 9US!:% nable $Sho" 'leared Transactions% $Sho" 8oid ,ayments% $!llo" !dding Lines to Imported Statements%
$,urge%
'hoose $Signing !uthority !ppro1al% as $0or)lo" $0or)lo" nabled% and s"itch to $'ash Management Transactions% tab This is sho"n in the belo" image+
*nce ;one 'lic) on 'ash Management Transactions Tab. nter the 5ollo"ing+ 'hoose
*nce done clic) on $Sa1e%. ) Bank Setup
2a1igate to 'ash Management ->Setup-> 3an)s-> 3an)s
The belo" "eb page is displayed+
5rom the abo1e screen clic) on $'reate% button. This ta)es us to the a ne" 3an) Inormation page. 2o" enter the details as ollo"s+ 'ountry+ United States 3an) 2ame+ $My 8ision 3an)% !lternate 3an) 2ame+ $M83% 3an) 2umber+ $RS;?@A% This is sho" in the image belo"+
Then 'lic) Sa1e and 2e
'lic) on $!pply%.
*n the ne
*nce "e sa1e the ban) details# *racle ta)es us to a page "here "e ha1e to create a contact. 5or this gi1e the details as belo"+ ,rei<+ $B% 5irst 2ame+ $BB.% Middle 2ame+ $BB% Last 2ame+ $BB.% 2ame Initials+ $B..% Start ;ate+ $BB.% Select the appropriate $ob Title% and $ob Title 'ode% This is sho"n belo"+
*nce done clic) on $5inish%. *n the ne
2e
Setup->3an)s. Search or the appropriate ban) and clic) on $'reate 3ranch% : Gi1e the belo" details+ $'ountry% and $3an) 2ame% and clic) on continue.
Select $'reate ne" 3ranch%# Gi1e the $3ranch 2ame% and $3ranch Type%
'lic) on $Sa1e and 2e
) Create Bank !ccount .
'lic) on $'reate !ccount% to create ban) account rom the abo1e "ebpage i re=uired. !lternati1ely# user can also create a ban) account later as sho"n belo"+ 2a1igate to 'ash Management -> 3an)s->3an) !ccounts
nter the $'ountry%# $3an) 2ame% and $3ranch 2ame% as belo". Then clic) on $'ontinue%.
In the ne
'lic) $2e
!gain clic) on $Sa1e and 2e
Scroll do"n and chec) mar) $!llo" ero ,ayments% clic) on sa1e and ne
Then again in the belo" conirmation page that appears clic) on $Sa1e and 2e
'lic) on $!dd *rganiation !ccess% and in the ne
*nce done clic) $continue%. 0e are again directed to a conirmation page "herein "e clic) on $Sa1e and 2e
In the ne
2a1igate to 'ash Management-> Setup -> 3an) !ccounts Huery or the ban) account created by gi1ing the $!ccount 2ame% $3ranch 2ame%. Then clic) on $Search%.
In the page that appears select the account and clic) on $Manage ,ayment ;ocuments%.
'lic) on $'reate%.
nter the ollo"ing details 2ame as $8ision *perations Malaysia ,ractice ;ocument% ,aper Stoc) Type as $,renumbered Stoc)%
5ormat as $Standard 'hec) 5ormat% 5irst !1ailable ;ocument 2o as $7% Last !1ailable ;ocument 2o. as $EEEEEEEEEEEEE% and clic) on $!pply%. This is gi1en belo"+ This payment document is used to pay the in1oice through the ban)s. ere "e deine "hat )ind o paper stoc) type to use or chec) lea1es and the no o lea1es 9li)e in a chec)boo):# I u go to payable "or)bench i u try to pay or that in1oice payables reser1e one document .0e "ill deine this payment documents "hen "e are deining 3an)s. Use this "indo" to deine payment documents or your Internal ban) accounts in *racle ,ayables. 2ote that you do not need to deine payment documents or reunds because reunds do not use pa yment documents . ult ! popular deault ,ayment ;ocument is 'hec) ,ositi1e ,ay.
'onirmation page appears.
%) Bank Transaction Codes
To setup the ban) transaction codes na1igate to 'ash Management->3an)s->3an) Transactions 'odes
Select the appropriate ban) account as sho"n abo1e. In the page that appears gi1e the details as in the belo" image. 2ote that the $Trans Source% or any o them is either $!, ,ayments% or $!, Receipts%.
Gi1e the ;etails or the same as abo1e.
Cash Management Transactions for Check Transfer Cash Management Statement and Reconciliation Transaction for aya'les &n*oice+ 1) ,irst Create a aya'les &n*oice
2a1igate to ,ayables Manager-> In1oices-> In1oices nter the 5ollo"ing+ *perating Unit+ 8ision *perations Type+ Standard Trading ,artner+ !gile lectronics Supplier 2o. and Supplier Site+ 'hoose ;eault In1oice ;ate+ Since it is a practice transaction "e input an earlier date ?J-Mar-K?7@( In1oice 2umber +I28?J?AK?7@7# In1oice amount+ K?#??? Gl ;ate+ Same as In1oice ;ate# ?JMarK?7@# ;istribution Set + =uipment
Terms ;ate+ same as abo1e# Terms+ Immediate ,ayment Method+ 'hec)
*nce done enter the same details at the li ne le1el o the in1oice.
Gi1e thee $Type% as $Item%# $!mount% same as header le1el# GL ;ate in the line should be same as the transaction date at the header le1el i.e $?J-M!R-K?7@%.
In the same line le1el tab# clic) on $;istribution%. This ta)es us to the belo" orm. 0e can see that the KJ??? is split as per the distribution set. This is because o the distribution set selected earlier.
'lose the abo1e orm and return to the in1oices orm.
Then clic) on !ctions tab once again and clic) on $'reate !ccounting 95inal:% or the in1oice and then clic) on $*4%.
2) #e-t we create a payment for the in*oice+
5or this go to !ctions tab and clic) on $,ay in ull( and clic) on $*4(.
In the page that appears enter the details as belo"+
$,ayment type% can be anything. The $Trading ,artner% is deaulted so is $Supplier number%# $Supplier Site%
nter the ollo"ing $,ayment ;ate% as $J Mar K?7@%# $3an) !ccount% as $8isionCM83CMalay%# $,ayment Method%+ 'hec) ults and ,ayment ;ocument as $Malaysia ,a yment ;ocument(.
The $,ayment ,rocess ,roile% should be $Standard 'hec) 5ormat%. nter the document number as $7%. Sa1e the same. 2ote the accounting is $Unprocessed%. The document number is the chec) number through "hich "e are ma)ing the payment in standard chec) ormat.
In the same orm clic) on $!ction% tab and then clic) on $'reate !ccounting 95inal:% or the payment.
2o" the accounting changes to $,rocessed%. !lso note that the Status remains $2egotiable% beore accounting as "ell as ater accounting.
Huery or the same in1oice in the in1oices "or) bench to 1eriy accounting status and a mount paid. This is sho"n belo"+
2ote that the amount is paid or this in1oice.
) Creating a 'ank statement
'reate a ban) statement or the abo1e transaction and perorm reconciliation. 2a1igate to 'ash Management-> 3an) Statements-> 3an) Statements and Reconciliation In the 5ind 3an) Statements orm clic) on $2e"%. ! ban) statement orm opens.
In this ne" orm enter the $!ccount 2umber% as $7DE?E@FEE%# !ccount name as $8isionCM83CMalay%. nter the Statement 2umber as $?F-M!R-K?7@C7%.
2ote that the In1oice ;ate must be lesser than 3an) Statement ;ate.
*nce done clic) on Lines tab in the same orm. .&mportant/ lease note that the statement date must 'e 'efore today0s date+ &f we enter a greater date systems shows an error+)
That is the reason "hy "hen "e entered the in1oice in t he pre1ious step "e entered it or a date beore today. In this ne" Lines orm enter the $Line 2umber% as $7%# $'ode% as $7??% since that is the ban) code deined earlier or !, payments# $2umber%90hich is nothing but the chec) number or document number: as $7% and the amount o the in1oice $K#@KJ%. The Status should remain $Unreconciled%.
'lic) on the $!1ailable% tab in the bottom o the page. In the ne"% 5ind Transaction% orm select $;etail% and $!, ,ayment% and in the $Transaction% tab enter the $In1oice 2umbers%.
Then clic) on $5ind%. This leads us to the belo" !1ailable Transactions orm+
It can be seen that the $Status% is $2egotiable%. 'hec) the line and clic) on $Reconcile% at the bottom o the page.
*nce done "e can see that the "e go bac) to the% 3an) Statement Lines% orm .
0e can see that the !mount reconciled is $K@DA.@J% and the $Status% is $Reconciled%. 0e can 1eriy the same "hene1er "e "ant b y na1igating to $3an)s Statements and Reconciliation% orm again and then gi1e the $Statement 2umber% and clic) on $5ind%.
In the ne" 3an) Statement orm clic) on $Re1ie"% tab and then clic) on $Lines% tab. This is seen as belo".
Thus the 3an) statement has been reconciled. The same can be 1eriied by going to ,ayables Manager-> ,ayments->ntry->,ayments. Huery "ith trading partner and the document number. The status is $Reconciled Unaccounted%.
'lic) on $!ctions% and this time select $'reate !ccounting 95inal ,ost:%.
It can be seen that the Status o the payment changes to $Reconciled%. The status or $!ccounting% changes to $,artial%. 3y 'reating !ccounting or the same the S tatus "ill change to $Reconciled%
!uto Reconciliation Transaction Step1) Create an &n*oice and make the payment
5or !uto-Reconciliation irst start "ith creating a payables in1oice. 5or this ollo" the same steps as abo1e or creating an in1oice. 2ote that the method o payment is $'hec)%. nter the details or the details at the line le1el and header le1el as in the pre1ious steps. Sa1e the in1oice# 1alidate it and# $'reate !ccounting 95inal:% or the same. 2ote that the in1oice number is I28CI28?J?AK?7@A
2e
Sa1e the in1oice and $'reate !ccounting 95inal:% or the same. Step 2) Create a Bank Statement
2o" enter ban) statement and perorm reconciliation. 2a1igate to 'ash Management->3an) Statements->3an) statement and reconciliation. 'reate the ban) statement as in the abo1e steps. 2ote that the ban) statement date must be lesser than today but greater than the !, in1oice date. Statement number is $7K-M!R-K?7@C7%. 0e ollo" the same steps or entering the ban) statement line.
o"e1er ater entering and sa1ing the ban) statement line "e do not go or manual reconciliation by clic)ing on $!1ailable% tab. Instead "e submit the !utoReconciliation ,rogram.
Step ) Reconcile through !utoReconciliation rogram
Instead ollo" the belo" steps+ 2ote that the status o the line abo1e is unreconciled. 'lose the orms and na1igate to ,rogram->Re=uest. 'hoose $Single Re=uest% and enter $!utoReconciliation%.
nter the ,arameters as belo"+ 9This is gei1en in the image abo1e:. 3an) 3ranch name+ $MalayC3ranch% 3an) !ccount 2umber+ 7DE?E@FEE Statement 2umber 5rom and To+ $7K-Mar-K?7@C7% Statement ;ate 5rom and To+ $7K Mar K?7@% GL ;ate+ $7K-Mar-K?7@% Submit the re=uest. The $!utoReconciliation% program triggers the $!utoReconciliation
0ait or the programs to be completed 2o" na1igate to the 3an) Statement and Reconciliation 5orm again. In the $5ind 3an) Statements 5orm% clic) enter the statement nu mber and clic) on ind.
'lic) on $5ind%. Then in the ne" orm clic) on $Re1ie"% tab. In the $3an) Statement% orm clic) on $Lines%. !s can be seen belo" the line is $Reconciled%. This can be seen rom the Status.
2o" na1igate to ,ayables Manager->,ayments->,ayments. Huery or the payment document. It can be seen that the status is $Reconciled Unaccounted% and the $!ccounting% is $,artial%. ust li)e in manual reconciliation.
!s in manual reconciliation# $'reate !ccounting 5inal ,ost%. The status changes to $Reconciled% and the accounting changes to $,rocessed%.
Cash Management Transactions for #on$Check Transfer
Bank Statement Reconciliation when ayment Method is ire Transfer Step 1) Create an ! &n*oice
'reate an !, In1oice Using the details as abo1e e
$8alidate% and $'reate !ccounting 95inal:% or the same. 2e
! ne" $,ayments 5orm% opens "herein "e ill in the details or the ollo"ing particulars Nust as it "as done belo"+ nter the ollo"ing $,ayment ;ate% as $3an) !ccount% as $,ayment Method%+ $0ire%and $,ayment ;ocument% as $Mala ysia ,ayment ;ocument(. The $,ayment ,rocess ,roile% should be $Standard 'hec) 5ormat%. nter the document number as $J%. Sa1e the same. 2ote the accounting is $Unprocessed%. The document number is the "ire number. This is sho"n belo"+
Step 2) Create a Bank Statement
2o" na1igate to 'asch Management-> ->3an) Statements and Reconciliation. 'lic) on $2e"% in the the 5ind 3an) Statements 5orm. In the ne" 3an) Statement orm gi1e the date and GL date and gi1e the statement number as $7A-M!R-K?7@C7%. 'lic) on Lines. Gi1e the details or the lines as belo"+
Type as $,ayment%# 'ode as $7??%# 2umber as $J%# Transaction ;ate and 8alue ;ate as $7A-Mar-K?7@% and the !mount as $K7AF?%. 2ote that the Status is $ Unreconciled%. Step ) Reconciliation
In the 3an) Statements Lines 5orm clic) on !1ailable and =uery or !, ,ayments.
ust as beore 'hec) mar) the Line in this orm "hich is associated "ith the in1oice created and clic) on $Reconcile%. *nce done "e can see that the status changes to $Reconciled%. This is sho"n belo".
2o"# na1igate bac) to ,ayables Manager and chec) the payment status as "ell as create inal accounting and post it. Bank Statement Reconciliation when ayment Method is lectronic+ Step 1) Create an &n*oice
'reate an In1oice in $!ccounts ,ayable% "here in the $,ayment Method% chosen is $lectronic%. !ll the other details should be the same as beore.
2ote the In1oice number is I28C7J?AK?7@. 2ote that once the ,ayment Method is chosen as lectronic# the Remit-to 3an) !ccount 2ame and the Remit-to 3an) !ccount 2umber ields are automatically populated. This is the ban) account details o the suppliers ban).
Sa1e the in1oice# 1alidate and create accounting or the same. *nce that is done clic) on $!ctions tab-> ,a y in ull%. 2o" once again enter the details as beore e
2ote that the $;ocument 2umber% is automatically populated. !lso 2ote that the $Remit to !ccount% number is also gi1en. 2ote the document number as 7EADK. Sa1e the document and create accounting or the same.
Step 2) Create a Bank Statement
2o" na1igate to 'asch Management-> ->3an) Statements and Reconciliation. 'lic) on $2e"% in the the 5ind 3an) Statements 5orm. In the ne" 3an) Statement orm gi1e the date and GL date and gi1e the statement number as $7D-M!R-K?7@C7%. 'lic) on Lines. Gi1e the details or the lines as belo"+
2ote that the 2umber ield should be the electronic payment document number that is 7EADK# and the transaction and 1alue date are same as in1oice number i.e $7?-Mar-K?7@%. ) erform Reconciliation+
2o" in order to perorm reconciliation clic) on !1ailable tab in the bottom o the page. In the 3an) Statements Lines 5orm clic) on !1ailable and =uery or !, ,ayments. ust as beore 'hec) mar) the Line in this orm "hich is associated "ith the in1oice created and clic) on $Reconcile%. *nce done "e can see that the status changes to $Reconciled%. This is sho"n belo".
2o"# na1igate bac) to ,ayables Manager and chec) the payment status as "ell as create inal accounting and post it. 2ote that the status o the payment ater accounting should be reconciled as belo"+
&nter'ank Transfer Setup Step 1) Setup System 3ptions
2a1igate to Intercompany Super User-> Setup-> System *ptions
In the "ebpage that opens# na1igate to Setup-> !ccounting Tab. In the let hand tab clic) on $Intercompany !ccounts%. 0e get the belo" "eb page+
In the abo1e page =uery or the Transacting Legel ntity as $8ision *perations% and the Transacting Ledger as $8ision *perations 9US!:%. 'lic) on Go.
0e get the ollo"ing results.
5or the ro" Transacting 3alancing Segment 8alue $!ll *ther%# clic) on Update. This ta)es us to the belo" $Update Intercompany !ccounts ,age%.
'lic) on ;eine !ccounts or the $!ll *t her% ro". This ta)es us to the belo" page. In the ne" page that appears enter the Intercompany Recei1ables accounts and the Intercompany ,ayables !ccounts# i not entered already. Gi1e a start date or both.
'lic) on !pply or the same. 2o" clic) on $Intracompany 3alancing Rules% tab on the let in the home page. Huery up "ith the ledger and clic) on Go.
'lic) on 'reate in the abo1e page to create a ne" ro" or ro" 'ash Management-3an) Transers. In the page that appears "e can create rules in the $'reate Intracompany 3alancing Rules% region. Gi1e the name o the ledger as 8ision *perations 9US!:# the Source as $'ash Management%# the 'ategory as $ 3an) Transers97:% . 3elo" in the 3alancing ;eatils tab gi1e the $;ebit 3alancing Segment 8alue% and the $'redit 3alancing 8alue% as $ !ll *ther%. Gi1e the ;ebit !ccount as ?7-???-7F7?-????-??? and the 'redit !ccount as ?7-???-KA@?-????-???.
'lic) on the *ptions Tab. 5or Le1el o Summariation+ Summary 2et 5or 'learing 3alancing Segment 8alue+ Use or Many-to-Many ournals *nly
!nd ;eault *ptions+ $Manually ntered 'learing 3alancing Segment 8alue% This is sho"n belo"+
'lic) on apply. 0e can see that a ne" set o intracompany balancing rules called $'ash Management-3an) Transers97:% has been created.
2o" clic) on *rganiations tab. Huery or the organiation 8ision *perations. Ma)e sure that it is acti1e and enabled.
2) ayment Template Setup
2o" na1igate to 'ash Management-> Setup-.> System-> ,ayment Template. This ta)es us to the belo" page+
'lic) on 'reate to create a ne" template. In the Update ,a yment Template code enter the ollo"ing+ Template 'ode+ I' Trans'ode 'urrency+ US; The 3an) !ccount 2umbers or source+ 7DE?E@FEE The 3an) !ccount 2umbers or ;estination+ FAE@DEKF??7D Ma)e sure that the !uthorie Transaction and Settle Transaction *ptions are set to 2o. The rest o the details as belo"+
Sa1e the same. 'lic) on ,ayment ;etails.
;o not enter any details on this page. Ma)e sure that the ,ayment Method is 2ull.
&nter'ank Transfer Transaction 2o" 2a1igate to 'ash management-> 3an) !ccount Transers
In the ne" 3an) !ccount Transers ,age clic) on 'reate.
This ta)es to the 'reate 3an) !ccount Transer ,age+
In this page select the payment Template as Ic Trans'ode# 3an) Reerence 2umber as Manual-7KADJ The Transer date as $7-Mar K?7@% 'urrency as US; Transer !mount as 7???.
In the abo1e ma)e sure that the settlemen thru oracle payments is $no% and t ranser date is O or > todays date. 'lic) on !pply. 0e are again ta)en bac) to the main page "here "e can =uery the transaction "ith the 3an) Reerence number ad clic) on go.
The search result is displayed as belo"+ e
0e can see rom the image abo1e that the system has allocated a transer 2umber to the transaction "hich is $7%. Transaction has a status o ne". 'lic) on $8alidate% to 1alidate and complete the transer. The ban) account transer is successul and this can be seen belo"+
In the abo1e page by clic)ing on the transaction number 7 ta)es us to a ne" page.
This ne" page abo1e has the details o the transaction or our conirmation. 0e can also clic) on $8ie" 'ashlo"s% tab to understand the mo1ement o cash bet"een the payee organiation and the payer organiation. This is sho"n belo"+
'lic) on the home page to go bac) to the menu. 2e 3an) Statement-> Manual 'learing-> 'lear Transactions.
In the abo1e 5ind Transaction 5orm that opens Huery "ith the !ccount 2umber. ! ne" 'lear Transactions orm appears. This orm has the details o the interban) transer done rom 8ision *perations 3an) My8ision3an). 'hec) and 1eriy the details. *nce done chec)mar) the transaction and cli c) on 'lear Transaction tab at the bottom o the page.
2o" once again na1igate ban) to ind the account or the recei1ing ban). 2a1igate to 'ash Management-> 3an) Statement-> Manual 'learing-> 'lear Transactions.
In the abo1e 5ind Transaction 5orm that opens Huery "ith the !ccount 2umber. ! ne" 'lear Transactions orm appears. This orm has the details o the interban) transer or 3an) o !merica ban) account. This is sho"n belo"+
'hec) and 1eriy the details. *nce done chec)mar) the transaction and cli c) on 'lear Transaction tab at the bottom o the page. 2o" once again done run the $'reate !ccounting% concurrent program to create accounting or the abo1e reconciliations.
Terms and Terminology in *racle 'ash management+
Document Payable. A document to be paid by the deploying company (Payer) and it may represent, for example, a Payables inoice or scheduled payment!
Pay Run/Payment Process Request. A pay run is a broad term, "hich describes the process by "hich a group of inoices is selected and processed for payment! #t is roughly e$uialent to the %elease 11i concept of a payment batch! &he term Pay %un is often used interchangeably "ith the term Payment Process %e$uest! A payment process re$uest is technically a re$uest created by a source product for 'racle Payments payment serices! &he p ayment process re$uest, "hich originates in the source product during the inoice selection process, contains one or more documents payable to be paid! uring the payment process, the documents payable in the payment process re$uest are built into payments!
Payee. &he person or organiation that is being paid, for example, the supplier, employee, or customer to "hom the payment is made!
Payment Instruction. A payment instruction is a collection of payments, along "ith aggregate payment information, that is formatted! epending on the setup, a payment i nstruction may be conerted into a *le to be printed onto chec+s or into a payment *le that is transmitted to a payment system for further processing and disbursement!
Payment Process Profle. A payment process pro*le is a payment attribute assigned to documents payable, "hich speci*es handling of the documents payable, payments, and payment instructions! Payment process pro*les including speci*cations for payment instruction formatting and transmission!
Payment process pro*les contain the follo"ing information
- payment instruction formatting information
- transmission information
- payment grouping
- payment limits
