R12 - Bank Account Transfer Ver 1.0

Bank Account Transfer in Cash Management - Release 12

Version 1.0

Oracle Financials - Release 12 Cash Management Module Bank Account Transfer Version 1.0

Date August 2013 Author Ivruksha Email [email protected]

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Greetings fellow professionals, Welcome you all for another presentation on the feature Bank Account Transfer (BAT) from Cash Management Module. I never really thought this feature is difficult to work with, considering the reference materials that were provided by oracle in the form of white papers and user guides, however many questions began to arose when I started hands on activity on this feature in detailed manner. I decided to share the knowledge I have gained by working on this feature to others. Take your time in going through the presentation and please point out mistakes that are available in the document, so that one can have better and correct understanding of this feature and no one gets misguided. Honestly I never thought exploring a simple feature like BAT would take this many pages ….. during my earlier presentations I used to struggle in order to fill pages, whereas now I am finding it extremely difficult to cut down on the number of pages, looks like all are relevant in one way or another …However I am very much sure that I would have left many areas unexplored as well. Please fire your feedback to the Author and the Site Administrator at [email protected]

Regards, Ivruksha

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Table of Contents INTRODUCTION ........................................................................................................................................... 5 WHAT IS BANK ACCOUNT TRANSFER? .................................................................................................... 5 HOW BANK ACCOUNT TRANSFER WAS DONE IN 11I? ........................................................................... 5 MODULES INVOLVED IN BANK ACCOUNT TRANSFER ........................................................................ 6 TYPES OF BANK ACCOUNTS ....................................................................................................................... 6 TYPES OF BANK ACCOUNT TRANSFER .................................................................................................... 6 MY VIEW – WHY THERE IS NO NEED FOR BANK ACCOUNT TRANSFER IN ORACLE E BUSINESS SUITE............................................................................................................................................................... 7 BANK ACCOUNT TRANSFER PROCESS ..................................................................................................... 8 DIFFERENT STATUSES AVAILABLE FOR A BANK ACCOUNT TRANSFER.......................................... 9 HOW TO CREATE A BANK ACCOUNT TRANSFER .................................................................................. 9 USING PAYMENT TEMPLATE FOR CREATING BANK ACCOUNT TRANSFER ................................. 10 AUTHORIZATION OF BANK ACCOUNT TRANSFER.............................................................................. 11 HOW TO CANCEL A BANK ACCOUNT TRANSFER ................................................................................. 11 CASH TRANSACTION SUBTYPE ................................................................................................................ 11 POSSIBLE BUSINESS SCENARIOS RELATED TO MULTI ORG ENVIRONMENT .............................. 12 POSSIBLE BUSINESS SCENARIOS RELATED TO CURRENCIES .......................................................... 13 ACCOUNTING IMPACT ON BANK ACCOUNT TRANSFER .................................................................... 13 SETUP CHECKLIST FOR BANK ACCOUNT TRANSFER ......................................................................... 14 DESCRIPTIVE FLEXFIELDS AVAILABLE IN BANK ACCOUNT TRANSFER ....................................... 15 PROFILE OPTIONS AVAILABLE FOR BANK ACCOUNT TRANSFER ................................................... 15 STANDARD REPORTS AVAILABLE FOR BANK ACCOUNT TRANSFER ............................................... 15 EXPLANATION OF FIELDS AVAILABLE IN BANK ACCOUNT TRANSFER CREATION SCREEN ...16 EXPLANATION OF FIELDS IN PAYMENT TEMPLATE ......................................................................... 21 EXPLANATION OF FIELDS IN TRANSACTION SUBTYPE .................................................................... 22 EXPLANATION OF FIELDS RELEVANT TO BANK ACCOUNT TRANSFER IN SYSTEM PARAMETER CONFIGURATION................................................................................................................ 23 TABLE NAMES INVOLVED IN BANK ACCOUNT TRANSFER ............................................................... 24 TROUBLESHOOTING .................................................................................................................................. 27

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REFERENCES FROM ORACLE DOCUMENTATION RELATED TO BANK ACCOUNT TRANSFER FEATURE THAT I AM UNABLE TO UNDERSTAND! .............................................................................. 28 QUESTIONS THAT MIGHT ARISE ............................................................................................................. 30 AREAS NOT COVERED IN THIS DOCUMENT ........................................................................................ 36 SOURCES OF INFORMATION .................................................................................................................... 36

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Introduction Bank Account Transfer (BAT) is a new feature in Cash Management module in Release 12 version and a welcoming one too. Bank Account Transfer is a very genuine business scenario in any organization that owns more than one internal bank account; however there was no direct solution provided by oracle in the standard set of financial modules in previous versions i.e. 11i. Since this was a new feature, the understanding was not there to begin with many consultants and clients. This document is to share my understanding of this feature to everyone.

What is Bank Account Transfer? It is a process of transferring funds from one bank account to another owned by the same Organization. (Same Organization does not mean Same Legal entity; here I referred the Organization in the context of Company as a whole) The importance of this business scenario is far less as it is not a transaction with third party entities like Suppliers or Customers; it is a transaction that would be recorded in the company’s books of accounts and bank’s books of accounts / Pass book. Since this is an internal transaction between banks owned by the same organization, the level of attention which it gets is far less when compared to other transactions.

How Bank Account Transfer was done in 11i? In 11i, the cash management module did not have the capability of recording any transactions; hence the bank account transfer was recorded in other modules. The most common way was to use Receivables module, where two miscellaneous receipts were created, one with negative amount and another with positive amount and recorded using appropriate receivable activities. Also, if every bank is represented by unique account code combination Manual Journal entry in General Ledger was the other workaround which was followed….. There have been extreme cases where Banks are created as suppliers and customers, followed by invoices getting created and payments/receipts getting recorded against those invoices to complete the cycle were also followed. (Note: In 11i, Inter Account Transfer feature from Oracle Treasury Module was able to meet the requirement, however considering the license cost of the Module for a feature, this remain unused/unexplored in 11i)

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Modules involved in Bank Account Transfer Following are the modules that are involved in bank account transfer at various stages, • • • • • •

Oracle Payments – Payment processing is taken care by Oracle Payments Module Subledger Accounting – Journal entries are created by SLA Cash Management – Internal Bank Accounts are created in Cash Management User Management – Security Roles are provided to the Legal Entity System Administrator – Responsibilities, Profile Option, User Name Creation… Oracle General Ledger – Entries transferred to General ledger as a whole.

Types of Bank Accounts From Oracle e business suite perspective, bank accounts are basically classified in two categories, i.e. Internal and External whereas External Bank Accounts are further classified in to Supplier Bank Accounts and Customer Bank Accounts. 1. Internal Bank Accounts refer to the bank account that is owned by the Client/organization 2. External Bank Account i. Supplier Bank Account refers to the bank account that is owned by the supplier/vendor who is transacting with the Client/Organization ii. Customer Bank Account refers to the bank account that is owned by the customers who is transacting with the Client/Organization In this presentation we are speaking about funds that are getting transferred between Internal Bank Accounts only, that are owned by our Organization

Types of Bank Account Transfer The Bank account transfer can be classified on various basis, A) On the basis of Legal Entity, 1. Intra Company Transfers – It refers to transfer between two internal bank accounts within the same Legal Entity 2. Inter Company Transfers – It refers to transfer between two internal bank accounts between two different legal entities

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B) On the basis of Currencies, 1. Domestic Transfers – It refers to transfer where currency of both the bank accounts and transaction currency is same. 2. International Transfers – It refers to transfer where currency of one bank account is same as the transaction currency, but the currency of other bank account is different. C) On the basis of Settlement, 1. Settlement in Cash Management – It refers to transfer which is settled in Cash Management Module 2. Settlement in Oracle Payments – It refers to transfer which is settled through Oracle Payments Module.

My View – Why there is no Need for Bank Account Transfer in Oracle E Business Suite Even though Bank Account Transfer feature was not available in earlier release (11i and earlier) on the Cash management module, I never really saw many clients making a big fuss about its nonavailability, which tell us that this type of transaction is not a bigger deal in most of the organizations who were using the financial modules. (Needless to say, there would be exceptions) I was thinking from business perspective as to why at all one would need to perform a bank account transfer in first place, what is wrong if they did not do so …? The most common reason for performing a bank account transfer in to facilitate the organization in making payments by making sure sufficient balance is available in the bank accounts that are often used for payments. Now the next question is what is wrong if one failed to do the above task? If the bank account used for making payments does not have sufficient balance, one cannot make payments in the system (Not referring to system used by bank) as from any (logical) internal system used for making payment the basic expectation is that a restriction should be placed which would prevent the user from continuing further when there are no funds available for making payment. Few systems even have the capability to prompt the user to make use of an Overdraft account instead of the regular bank account, when the balance is insufficient for making a payment. The above consequences may not happen in Oracle E Business suite during payment, since oracle payables does not check for the available balance for a bank account while making a payment. So when such a restriction is not built in oracle payments there is no compulsion for one to record such a transaction in the system. Hence Bank Account Transfer is not required at all for the above chain of thought.

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Bank Account Transfer Process The process followed for Bank Account Transfer is not a fixed one for all scenarios; it varies based on the values used while creating the bank account transfer. I have considered the various possibilities which could cause a change in the process based on the input that can be provided and classified in to the four categories below: Category 1 - Bank Account Transfer Process – When Settlement is done in Oracle Cash Management and does not require Authorization In this category below process is being followed by the system, BAT status is New >> Data entry is done for Bank Account Transfer and Saved >> BAT Status is New >> Validate the BAT >> BAT Status is Settled Category 2 - Bank Account Transfer Process – When Settlement is done in Oracle Cash Management and requires Authorization In this category below process is being followed by the system, BAT status is New >> Data entry is done for Bank Account Transfer and Saved >> BAT Status is New >> Validate the BAT >> BAT Status is Validated >> Authorize the BAT >> BAT Status is Settled Category 3 - Bank Account Transfer Process – When Settlement is done in Oracle Payments and does not require Authorization In this category below process is being followed by the system, BAT status is New >> Data entry is done for Bank Account Transfer and Saved >> BAT Status is New >> Validate the BAT >> BAT Status is Settlement in Process >> Complete the Payment Process Request >> Generate Payment Instructions >> BAT Status is Settled

Category 4 - Bank Account Transfer Process – When Settlement is done in Oracle Payments and requires Authorization In this category below process is being followed by the system, BAT status is New >> Data entry is done for Bank Account Transfer and Saved >> BAT Status is New >> Validate the BAT >> BAT status is Validated >> Authorize the BAT >> BAT Status is Settlement in Process >> Complete the Payment Process Request >> Generate Payment Instructions >> BAT Status is Settled www.ivruksha.com

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Different Statuses available for a Bank Account Transfer Continuing from the above section, the status of Bank account transfer gets changed based on the actions that are taken on them, below is the list of available status for a bank account transfer, STATUS New Validated Settlement In Process

Settled

Canceled Invalid Rejected Failed

EXPLANATION This is the very first and default status for every Bank Account transfer. Until a BAT is validated, it would stay in New Status. When Authorization is required for BAT, Validating the BAT would change the status from New to Validated. When settlement is done in Oracle Payments, till the steps required to be completed in Funds Disbursement Process Manager is due, the status of the BAT would be in this status. When there is no Authorization required for BAT and settlement happens in Cash Management, validating a BAT would change the status to this status. For BAT with Authorization and settlement happens in Cash Management, performing Authorization would change the status from Validated to Settled. For BAT with Authorization and settlement happens in Oracle Payments, printing the payment instruction in Funds Disbursement manager would result in this status. BAT has been canceled BAT did not pass through the validations stated by the system, as a result the status is Invalid, and one can update the BAT with necessary corrections and revalidate it. When the Authorization of BAT is rejected. When the BAT is settled through Oracle Payments, the data is transmitted from Cash Management to Oracle Payments automatically, if there is any issue during such process the status would display as Failed.

How to Create a Bank Account Transfer Assuming you have completed all the pre-requisite setups required for performing the bank account transfer, we would see the steps that are involved in creating a Bank Account Transfer in Cash Management, Step 1 – Decide whether you want to settle your Bank Account Transfer through Oracle Payments or not, based on that provide the Value for the field Settle transactions through Oracle Payments Step 2 – Enter the date of performing the transfer, this should be the date that is open in the GL calendar for your ledger. Step 3 – Enter the amount that is going to be transferred www.ivruksha.com

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Step 4 – Select the Source Bank and Destination Bank Step 5 – If the settlement is done through Oracle Payments, provide value for Payment method Step 6 – Validate your Bank Account Transfer Step 7 – If Authorization is required for the Bank Account Transfer, perform Authorization, else skip this step. Step 8 – If settlement is done through Oracle payments, complete the Payment Process Request and generate the Payment Instructions. If settlement is done in Cash Management, skip this step. Step 9 – Bank Account Transfer would now be in settled status. Step 10 – Clear/Reconcile the cash flows created by Bank Account Transfer Step 11 – Create Accounting for the Cash Flows and Transfer to General Ledger

Using Payment Template for creating Bank Account Transfer Payment template provides you with an option of entering all (excluding Transfer Date) the details required for performing a bank account transfer and save it as a template, which can be used at the time of creating a bank account transfer saving considerable amount of data entry work and avoid mistakes during data entry. If an organization has multiple internal banks and the frequency of bank account transfers are relatively high, one can create multiple payment templates with all possible combination of internal bank accounts. The Payment Template screen looks very much similar to the bank account transfer screen; hence most of the fields that require data entry are selfexplanatory. Payment templates are an optional configuration and not mandatory. Payment Templates can be classified in two based on the value entered in the field Repetitive Code, • When Repetitive Code is YES for a Payment Template If the value is selected as Yes, you cannot change the Source Bank and Destination Bank details at the time of creating the actual bank account transfer transaction. This would prevent the users from making modification to the bank details. • When Repetitive Code is NO for a Payment Template If the value is selected as No, you can change the Source Bank and Destination Bank details at the time of creating the actual bank account transfer transaction. Users are allowed to change the bank details before submitting the Bank Account Transfer. I was thinking, what is the purpose of having a payment template with Repetitive Code as NO, since if you are going to change the Source and Destination bank account for your transfer all the time, it is much better to create the transaction directly than using payment template. Also creating a payment template for bank account transfers which are of one time in nature and does not recur in future may not result in any benefits.

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Authorization of Bank Account Transfer Authorization process in Bank Account Transfer does not involve any workflow design or hierarchical chain for approvers; it is a simple manual process which any user can do, if access to that Function is available in the responsibility accessed by the users. Whether to perform Authorization for all the Bank Account Transfers or not depends on the base configuration done for the Cash Management Module i.e. in the System Parameters screen. In the System parameters form, under the Cash Management Transactions tab and Bank Account Transfers region, you would see a field called Authorization, if the value is set as ‘required’ all the bank account transfers would go through the process of authorization, if the value is set as ‘not required’ authorization would not be required. However there is another configuration at the Cash management that overrides the values stated in the System parameter screen, which is the Payment Template Configuration. Irrespective of the value you state in the System Parameter screen, the bank account transfer would look for values stated in the payment template for authorization field, when the bank account transfer is done with the use of Payment Template. I.e. even at the system parameter level your configuration may require authorization, however if your payment template says No for authorization, the bank account transfer transaction will not require authorization. Authorization is an optional configuration and not mandatory.

How to Cancel a Bank Account Transfer The condition for cancelling a bank account transfer depends on the status of its related Cash flows. One can cancel the bank account transfer as long as the Cash flows are in Created status, which means they are not cleared or they have been cleared already and later uncleared. Unless the status of both the cash flows turns to Created status, the cancel option will not be enabled in the screen. A Bank Account Transfer which is Settled, Invalid, New, and Validated can be canceled provided if the cash flows are not cleared. Similarly, you cannot cancel the BAT which is in the status of Settlement in Process, Rejected, and Canceled. Cancelling a bank account transfer would remove the associated cash flows from the bank account transfer transaction. If Bank Account transfer settlement is done through Oracle payments, cancelling the bank account transfer will not cancel the Payment process in oracle Payments. This has to be take care separately. I.e. Users should switch to Oracle Payments and manually make sure the payment process is voided or cancelled from continuing further.

Cash Transaction Subtype This is an optional configuration. I haven’t really seen the purpose and usage of this setup during my simulations, hence not sure on its impact on the bank account transfer. From what I understand, there seems to be no validation related to this configuration, if you define and use a cash transaction www.ivruksha.com

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subtype in your bank transfer, there is no additional process or steps that is required to be performed. Oracle says, it helps in categorizing cash flows for reporting purposes.

Possible Business Scenarios related to Multi org environment The design of the Bank Account transfer is purely dependent on the Legal Entity ownership of every bank account. Oracle has said bank account transfer can be done for bank accounts within Legal Entity and between Legal Entities, now the question which arises is that how about the Ledgers, Business Groups pertaining to those Legal entities, can they vary as well or should they remain the same for Source and Destination bank account. There is no documentation available to my knowledge to get this clarified, hence I decided to find it myself by performing the transactions with all possible combinations, the results confirm that one can perform transfer between Legal Entities irrespective of the Business Group and Ledger it belongs to, there is no restriction being imposed by the system. Following scenarios were tried and were completed successfully in the system, One Business Group > One Ledger > One Legal Entity Transfer between two bank accounts that belong to the same legal entity is performed. One Business Group > One Ledger > Two Legal Entities Transfer between two bank accounts, each belong to different legal entity is performed One Business Group > Two Ledgers > Two Legal Entities Transfer between two bank accounts, each belong to two different legal entity and two different ledgers is performed Two Business Group > Two Ledgers > Two Legal Entities Transfer between two bank accounts, each belong to two different legal entity, two different ledgers and two different business group is performed

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Possible Business Scenarios related to Currencies There are seeded validations available in the system that would prevent the Bank Account Transfer if the currency used for the Transfer, Source Bank Account and Destination bank account combination is not acceptable. I have done few simulations and captured the results in below table for your reference …. Source Banks Source Bank Destination Destination Transaction Result Ledger Currency Currency Ledger Currency Bank Currency Currency USD USD NA (Transfer USD USD Allowed within Ledger) USD USD NA (Transfer USD INR Not Allowed within Ledger) USD USD NA (Transfer GBP USD Not Allowed within Ledger) USD GBP NA (Transfer AED USD Not Allowed within Ledger) USD USD NA (Transfer GBP GBP Allowed within Ledger) USD USD INR INR USD Allowed USD GBP INR INR GBP Allowed I could extend my simulations to multiple permutations and combinations, however all of it would get covered under the below thumb rules, 1) Transfer Currency should be either in the Source Bank Accounts Currency or Destination Bank Account Currency. 2) At least One Currency of the Bank Account (Source Bank or Destination Bank) should match with the Ledger Currency and the remaining bank accounts currency should match with Transfer Currency. 3) If the functional currency is USD, a bank account transfer cannot take place between accounts which are denominated in EUR and JPY. 4) You cannot create any transfer between two non-functional (ledger) currency bank accounts.

Accounting impact on Bank Account Transfer In earlier version (11i), Oracle Cash Management module does not generate any accounting entries by itself, clearing and reconciliation happens in Cash management which results in accounting

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entries in payables or Receivables but not in cash management module. Cash management was not seen as a transaction recording and processing module earlier. However in Release 12, due to introduction of bank account transfer, accounting is now possible in Oracle Cash Management as well. For every bank transfer transaction, there would be two set of accounting entries that would be generated by Oracle Cash management, 1) Accounting entry for Cash Outflow in the Source Bank 2) Accounting entry for Cash Inflow in the Destination Bank Accounting entries are created only when the bank account transfer cash flows are cleared and uncleared. There are no accounting entries generated by the system when the BAT is created and cancelled. The account codes that are used by the system for the Bank account transfer are picked up from the Intercompany, Intracompany and Bank Account configuration automatically; users cannot provide or key in the account codes manually during run time. Since the account codes are picked up from the configuration directly, there is no user intervention happening in between, what if one would want to change the code combination … not all the time, but say for a specific transaction … You should either depend on creating an ADR for such a scenario or pass a manual Subledger journal entry in cash management. Apart from Bank Account Transfer, Subledger Accounting feature in Release 12 made the possibility of creating a manual Subledger journal entry in Cash Management Module, which was not possible in the earlier version (11i). I.e. one can create a manual journal entry similar to that of general ledger journal in Cash management module and transfer that entry to the General ledger, this way the adjustments performed at the Subledger have a clear visibility. For Example, Due to an incorrect configuration Bank account transfer might have resulted in an incorrect accounting entry, to fix this you can either cancel the transaction and redo it, or pass a manual journal entry which would nullify the effect of incorrect entry and pass the values correctly.

Setup Checklist for Bank Account Transfer 1) Access to Cash Management, User Management, Oracle Payables, Funds Disbursement Process Manager, system administrator and General ledger responsibilities are required 2) Login credentials of SYSADMIN is required for performing configuration in User Management responsibility (adding this responsibility to your login will not help, either you need to have access or System administrator should grant this role to your user name) 3) Create Multi Org setup(BG, Ledger, Legal Entity and Operating unit) 4) Setup Intracompany Balancing rules for your Ledger and Legal Entities www.ivruksha.com

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5) 6) 7) 8)

Setup Intercompany Accounts for your Ledger and Legal Entities Configure Cash Management Module for the Legal Entity Grant Legal entity access to Cash Management using User Management Security. Create Banks, Bank Branches Bank Accounts and Payment Documents in Cash management 9) Setup a Payment Process profile (printed or electronic type as required) in Oracle Payments (Required only if settlement is done using Oracle Payments) 10) Define Transaction Subtype in Cash Management (Optional) 11) Define Payment Template in Cash Management (Optional)

Descriptive Flexfields available in Bank Account Transfer There is a single Descriptive flexfield that is available for Bank Account Transfer and it is displayed in the bank account transfer creation screen. There is nothing special about this DFF, it does the same role as any other DFF in the application, which is to capture additional information required by business and does not perform any validation. However during my testing, I found that the payment template screen does not display the DFF, hence if you want to create a payment template for your Bank account transfer with DFF values it is not possible. You have to provide value for the DFF always at the Run time i.e. when creating the actual bank account transfer transaction. The behavior is very similar to the Transfer Date field.

Profile Options available for Bank Account Transfer There is a single profile option available in relation to bank account transfer which is "CE: Bank Account Transfers". This profile option has two seeded values available for selection i.e. Cash management and Treasury. This profile option defines where the cash transfers will be created as a result of the cash pool activity. If you choose Cash Management, then the cash transfers created by the cash leveling or ZBA sweep activity will be created in Cash Management using the Bank Account Transfer framework. If you choose Treasury, then these cash transfers will be created in Treasury using InterAccount Transfers (if both bank accounts belong to the same legal entity) or Intercompany Funding transactions (if bank accounts belong to different legal entities)

Standard Reports available for Bank Account Transfer There is no dedicated report made available for Bank Account Transfer in Cash management, considering this is a new feature provided in release 12; I strongly feel few reports should have been

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made available as a standard fit. May be in future releases we may expect, till such time the implementation partners can continue to charge the clients for creating one more custom report! Few reports which can be related to other areas of Bank Account transfer are tried in the Demo section available for your reference. I did not see any concurrent programs available specifically for performing bank account transfer.

Explanation of fields available in Bank Account Transfer Creation Screen Field 1 - Settle Transactions through Oracle Payments The value stated in this field decides whether Bank Account Transfer needs to be processed in Oracle Payments module or not. We need to understand why at all such an option was given to users first, why oracle can’t decide on a best business practice and make it as a seeded process. By involving Oracle Payments module, • The money paid out of the Bank is considered as just another payment transaction and recorded. • Payment Instruction generated by Oracle payments could be sent to bank electronically or manually. • Beneficial to clients where volume of Bank account transfers are considerably less • Number of steps that require user intervention is more • Processing time is on the higher side By NOT involving Oracle Payments module, • User intervention is minimized • When client has huge volume of such transactions, processing each and every transaction might prove to be a massive task, in which case Client can opt out of Oracle Payments Module for completing the transfer process. • If Client has not purchased Oracle Payments module for usage. • The payment instruction or intimation to bank happens outside oracle, in which oracle has no control or integration. Field 2 - Transaction Subtype This field is used for reporting purposes; it does not perform any validation on the transaction. Any value that is defined under the Transaction Subtype in cash management would get displayed in the list of values and available for user selection. Field 3 – Payment Template This field is used for defaulting entire data that is required to perform a bank account transfer. One can create a payment template for transactions that are recurring in nature, so that it saves time in www.ivruksha.com

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creating such transfers. A Payment template is a replica of bank account transfer screen along with few additional fields which will capture all required information for performing the transfer and store it for future usage any number of times. Field 4 – Status This field displays the current state of the Bank Account Transfer transaction. There are various statuses through which bank account transfer passes through in order to get completed; this field helps us in identifying the current status of the transaction. Field 5 – Transfer Date This is the date on which Bank Account Transfer would happen. Since Cash Management module does not have a period open and close concept on its own, this date refers to the GL Period. Field 6 - Currency This is the transaction currency on which bank account transfer is performed. Field 7 - Transfer Amount This is the amount that is being transferred between bank accounts. Field 8 – Comments This is a free text field, one can type any data; can be used for identifying the purpose of transfer etc. Field 9 - Bank Account Number It represents the Bank account Number of Destination and Source Bank Field 10 - Bank Account Name It represents the Bank account Name of Destination and Source Bank Field 11 - Branch Name It represents the Bank branch Name of Destination and Source Bank Field 12 - Bank Name It represents the Bank Name of Destination and Source Bank Field 13 - Legal Entity It represents the Bank account owner of the Bank Account related to Destination and Source Bank Field 14 - Payment Method When settlement happens in Oracle Payments, one needs to provide the payment method to determine whether the payment would be made electronically or in printed manner. www.ivruksha.com

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Field 15 - Payment Reason This represents the Payment reason that is defined in the Payment Administrator. From purpose perspective, I did not see any validations being performed around this during transaction processing. Field 16 - Payment Reason Comments It is another free text field, where you can type any data. Field 17 - Anticipated Value Date This field indicates the anticipated date when the funds will reach the destination bank account Field 18 - Bank Charge Bearer The available options for this field are Payee, Payer, Pays Express Charges and Shared. In the event of bank charging the Source or Destination bank for the transfer or settlement, selecting the above option would determine who would bear such charges. Field 19 - Remittance Message 1 This is another free text field, which may be used to send any message or instruction to the bank Field 20 - Remittance Message 2 This is another free text field, which may be used to send any message or instruction to the bank Field 21 - Remittance Message 3 This is another free text field, which may be used to send any message or instruction to the bank Field 22 - Context Value This field would open up the descriptive flexfield configured for the Bank Account Transfer.

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Characteristics of the Fields involved in creating a Bank Account Transfer transaction S No 1

Field Name

Settle Transactions through Oracle Payments

Field Type

Seeded or User Defined

Drop Down Box

Seeded Values Only

Transaction Subtype

List of Values

User Defined Values Only

3

Payment Template

List of Values


4

Status

Seeded Values Only

5 6

Transfer Date Currency

Not Updateable, View only List of Values List of Values

7 8 9 10

Transfer Amount Comments Bank Account Number Bank Account Name

11

Branch Name

12

Bank Name

13

Legal Entity

14

Payment Method

Not Updateable, View only Not Updateable, View only Not Updateable, View only Not Updateable, View only List of Values

15

Payment Reason

List of Values

16

Payment Reason Comments

Free Text Field

2

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Free Text Field Free Text Field

Seeded Values Only Seeded Values and User Defined Values Free Text Field Free Text Field

List of Values


Values available for the field 1) Yes 2) No All values setup under the Transaction Subtype (Navigation: Setup > System > Transaction Subtype) All values setup under the Payment Template (Navigation: Setup > System > Payment Template) New, Validated, Settled, Settlement in Progress, canceled, Invalid, Rejected and Failed Calendar Days in DD-MON-YYYY format All currencies defined and enabled

Seeded Values and User Defined Values

Free Text Field Free Text Field All values setup under the bank accounts (Navigation: Setup > Payment > Bank Accounts) All values setup under the bank accounts (Navigation: Setup > Payment > Bank Accounts) All values setup under the bank accounts (Navigation: Setup > Payment > Banks and Bank Branches) All values setup under the banks (Navigation: Setup > Payment > Banks and Bank Branches) Legal Entities linked with the above Bank Account (Navigation: Setup > Payment > Bank Accounts) All values setup as Payment Method (Navigation: Setup > Payment > Payment Methods)

Seeded Values and User Defined Values

All values setup as Payment Reason Codes (Navigation: Setup > Payment > Payment Administrator)

Free Text Field

Free Text Field

User Defined Values Only User Defined Values Only User Defined Values Only User Defined Values Only

Mandatory or Optional Mandatory Optional Optional Mandatory Mandatory Mandatory Mandatory Optional Mandatory Mandatory Mandatory Mandatory Mandatory Optional when Settlement is not done through Payments Optional Optional Page 19

Bank Account Transfer in Cash Management - Release 12 17 18 19 20 21 22

Anticipated Value Date Bank Charge Bearer Remittance Message 1 Remittance Message 2 Remittance Message 3 Context Value

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List of Values Drop Down Box Free Text Field Free Text Field Free Text Field Descriptive Flexfield

Seeded Values Only Free Text Field Free Text Field Free Text Field

Version 1.0 Calendar Days in DD-MON-YYYY format Free Text Field Free Text Field Free Text Field

Optional Optional Optional Optional Optional Depends on DFF setup

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Explanation of fields in Payment Template This is very similar to the Bank account transfer screen; hence to avoid duplication I have taken up fields that were not available in the Bank Account transfer transaction screen. Field 1 – Template Code This is the name of the Payment Template that is going to be created. Field 2 – Repetitive Code If the value is yes, the source and destination bank is mandatory and once created, the same cannot be modified at the time of creating the bank account transfer. If the value is No, one would be able to modify all the attributes stated in the payment template while creating bank account transfer. Field 3 – Authorize Transaction If the value is yes, the bank account transfer would require to be authorized manually before settlement. If the value is No, the bank account transfer does not require authorization or we can say that it is automatically authorized. Field 4 – Settle Transaction If the value is Yes, Oracle payments would be used for processing the payment for settling the transaction If the value is No, settlement happens directly in Oracle Cash management. Field 5 – Description This is a free text field, does not have any validation built in.

Characteristics of the Fields involved in creating a Payment Template S No 1 2 3 4 5

Field Name

Template Code

Repetitive Code Authorize Transaction Settle Transaction Description

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Field Type Free Test Field Drop Down Box Drop Down Box Drop Down Box Free Test Field

Seeded or User Defined User Defined Values Only Seeded Values Only Seeded Values Only Seeded Values Only User Defined Values Only

Values available for the field Free Test Field Yes , No Null, Yes , No Null, Yes , No Free Test Field

Mandatory or Optional Mandatory Mandatory Optional Optional Optional

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Explanation of fields in Transaction Subtype Field 1 – Subtype Name This would be the name of the Transaction Subtype that would be created Field 2 – Short Name If required, a short name can be created for identifying the above Subtype Field 3 – Subtype Parent Name If the subtype is going to be a child under a parent subtype, then select the parent subtype in this field. Field 4 – Description This is a free text field where one can enter the purpose of the Transaction Subtype. Characteristics of the Fields involved in creating a Transaction Sub Type S No 1 2 3 4

Field Name

Subtype Name Short Name Subtype Parent Name Description

Field Type


Values available for the field


Free Text Field

Free Text Field List of Values

User Defined Values Only User Defined Values Only

Free Text Field


Free Text Field All values setup under the Transaction Subtype earlier Free Text Field

Free Text Field

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Mandatory or Optional Mandatory Optional Optional Optional

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Explanation of fields relevant to Bank Account Transfer in System Parameter Configuration Field 1 - Exchange Rate Type Bank Statement Cashflows and Bank Account Transfers programs select the exchange rates for the transaction currency using the exchange rate type you specify. You can choose any exchange rate type defined in Oracle General Ledger Field 2 - Bank Transfer Rate Date Bank Account Transfers program selects the exchange rates for the transaction currency using the date source you specify. You can choose any of the following exchange rate dates: Transfer Date: The date the bank account transfer occurred. Statement Line Date: The bank statement line date. Bank Statement Date: The closing date of the statement. GL Date: The accounting date used to clear the statement. Cleared Date: The date the transaction cleared the bank Actual Value Date: The statement line value date. Cashflow Date: The date the Cashflow is created from the bank account transfer. Field 3 - Bank Account Transfers Authorization If the value is Not Required, no authorization is required for completing the bank account transfer. If the value is Required, authorization is required for completing the bank account transfer. Characteristics of the Fields involved in System Parameter Configuration S No 1 2

3

Field Name

Exchange Rate Type

Bank Transfer Rate Date

Authorization

Field Type


Drop down box

Seeded and User Defined Values

Drop down box

Seeded Values Only

Drop down box

Seeded Values Only

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Values available for the field Free Text Field The dates available are: Actual Value Date, Bank Statement Date, Cash Flow Date, Cleared Date, GL Date, Statement Line Date and Transfer Date The values available are required and not required

Mandatory or Optional Mandatory Mandatory

Mandatory

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Table Names involved in Bank Account Transfer Tables in Cash Management CE_SYSTEM_PARAMETERS

This table stores the information configured in the System parameters screen available in Cash Management Module. There are configurations related to Bank account transfer such as Authorization required or not are mentioned in this screen, which gets stored in the above mentioned table.

CE_BANKS_V

This table (view) displays the information that is captured while creating the Banks.

CE_BANK_BRANCHES_V

This table (view) displays the information that is captured while creating the Bank Branches.

CE_BANK_ACCOUNTS

This table stores the information configured while defining the bank accounts. It also stores the legal entity information that is linked to the Bank Account.

CE_BANK_ACCT_USES_ALL

This table stores the information configured while defining the bank accounts. It stores the operating unit level information that is linked to the Bank Account.

CE_BANK_ACCT_USES_OU_V

This table (view) displays information about the Operating units and its subledgers which can access this bank account.

CE_PAYMENT_DOCUMENTS

This table stores the payment document that is configured for your bank account.

CE_PAYMENT_TRANSACTIONS

This table stores the actual bank account transfer transactions.

CE_PAYMENT_TEMPLATES

The payment templates created for Bank Account Transfer are stored in this table

CE_CASH FLOWS

All Cashflow details are stored in this table.

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CE_CASH FLOW_ACCT_H

This table stores the history details of the cash flows

CE_TRXNS_SUBTYPE_CODES

This table stores the details of the Cash Transaction Subtypes configured

Tables in Oracle Payments IBY_PAY_SERVICE_REQUESTS

This table stores the payment process request details of the Bank Account Transfer when the settlement is done in Oracle Payments module.

IBY_DOCS_PAYABLE_ALL

This table stores the bank account transfer transaction details that need to be paid.

IBY_PAYMENTS_ALL

This table stores the information about the payment that has been made in Oracle Payments.

IBY_PAY_INSTRUCTIONS_ALL

This table stores the information related to Payment instructions created for the Payment Process requests in Oracle Payments or Funds Disbursement Process Manager.

Tables in Oracle Subledger Accounting XLA_EVENTS

This table stores the accounting events created for the transaction

XLA_AE_HEADERS

This table stores the accounting header information for the above accounting event

XLA_AE_LINES

This table stores the accounting line level information for the above accounting header

XLA_DISTRIBUTION_LINKS

This table stores the drill down connection between Transaction table and accounting tables.

XLA_ACCOUNTING_ERRORS

This table stores the errors generated by the system while performing accounting for the bank account transfer transaction

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XLA_GL_TRANSFER_BATCHES

This table stores the information about the accounted bank account transfer transactions that were transferred to General Ledger module.

Tables in General Ledger GL_JE_BATCHES

This table stores the Batch level information of the bank account transfer accounting entries transferred to General ledger.

GL_JE_HEADERS

This table stores the Header level information of the transferred accounting entry under the above mentioned journal batch

GL_JE_LINES

This table stores the Line level information of the transferred accounting entry under the above mentioned journal Header

GL_LEDGERS

This table stores the ledger details that were configured using Accounting setup Manager.

GL_LEDGER_CONFIGURATIONS

This table stores the Primary ledger information along with its completion status

GL_LEDGER_CONFIG_DETAILS

This table stores the complete ledger configuration details for your ledger. Ledger includes Primary as well as Secondary Ledger details.

GL_LEGAL_ENTITIES_BSVS

This table stores the balancing segment value assignments made to the Legal entity in the ledger.

Other related Tables XLE_ENTITY_PROFILES

This table stores information about the legal entities configured using Accounting Setup Manager.

FUN_BALANCE_OPTIONS

This table stores the Intracompany balancing rules that have been configured for your Ledger.

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This table stores the Intercompany Accounts configuration performed for your ledger using Accounting setup Manager.

FUN_INTER_ACCOUNTS

This table stores the intercompany receivables and payables accounts performed for your ledger using Accounting setup Manager

Troubleshooting One of the major reasons why people regret opting for oracle application is the time that is being spent on troubleshooting an issue towards its resolution. I am not getting in to further details on this, however before you reach out to oracle support for help do make sure you ask these questions to yourself: 1) Have you encountered this error for the very first time? 2) If it is for the first time, what got changed from last time, was there any new configuration, update to existing configuration, application of patch etc ..? 3) Does the error encountered all the time or only for selected cases? 4) Were you able to find the difference between the transaction which gets completed successfully and the selected cases which is resulting in error? 5) If there are multiple environments like Development, CRP, Training, Testing etc, does the error happens in all environments or is it specific to any particular environment? 6) Have you followed the steps stated in the user manual for recording the transaction? 7) Have you checked Oracle support repository to confirm whether the issue you faced has been already reported to some other customer or not, or could it be a known issue for which fix may be readily available? Once you decided to approach oracle support make sure you have all this information on hand before creating a service request: 1) 2) 3) 4) 5)

Diagnostics output of Apps Check OR Diagnostics output of RDA Diagnostics output of BAT and Cashflow Data Screen Shot of the Error Message Screen Shots of the steps performed to arrive at the Error Message Detailed description of the error message

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References from Oracle Documentation related to Bank Account Transfer feature that I am unable to understand! Reference 1

Document Reference - R12 White Paper on Bank Account Transfer for Oracle Cash Management (Doc ID 1276861.1) Explanation provided by Oracle, For the field Authorize Transaction in the payment template screen, oracle states that “Authorize Transaction: Indicates whether this specific funds transfer requires approval in Oracle Applications. This value can be overridden when you create the actual bank account transfer.” What I am unable to understand is, How can I override the value for this field at the time of creating the actual bank account transfer, since when you actually create the bank account transfer, the screen does not have a field available or displayed for Authorization. From the knowledge I have gathered, Authorization is based either on the System Parameter configuration or on the Payment Template configuration, one cannot change this value at the run time. May be I am having an older interface or screen, may be it is available in the new version of oracle…not sure! Reference 2 Document Reference - Bank Transfer Between Two Non Functional Currency Bank Account (Doc ID 782819.1) and User Guide. Explanation provided by Oracle, As per the above document reference (Doc ID 782819.1), However we don't allow right now as in the Bank Transfer screen we don't ask for Exchange rates anywhere. As such we will not know the amount in functional currency for which the debit and credit needs to be made. This is the main reason why we don't allow transfers if one of the currency is not functional currency. If we need to allow the transfer of currencies other than functional currencies we will need to make changes in the UI and also ask for Exchange Date, Exchange rate type and the Exchange Rate. Once we have this we need to make changes in the code to make sure that if different currencies are involved then we multiply by this exchange rate to arrive at the amounts in functional currency. As per the Oracle User Guide, explanation to the System Parameter configuration section, Exchange Rate Type: Bank Statement Cashflows and Bank Account Transfers programs select the exchange rates for the transaction currency using the exchange rate type you specify. You can choose any exchange rate type defined in Oracle General Ledger What I am unable to understand is, User Guide states, System Parameter has a place where one could set the Exchange rate type and which would be considered by Bank account transfer performed in Cash Management, whereas www.ivruksha.com

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Oracle Support documentation states, since we don’t ask exchange rates anywhere, we are not allowing transfer between two non-functional currencies. Can you see the contradiction in both the statements ….? Why cannot BAT make use of the Exchange Rate type configuration and pick the values accordingly so that we can perform bank account transfer between any banks irrespective of currencies limitation without any need to modify the User Interface of bank account transfer. (The above may hold good for Corporate exchange rate, however if users wants to enter his own rate in the screen like a spot rate, then User Interface needs to be modified for capturing such information) Reference 3 When you define a payment template, you can see a labeled text stating “If used as a repetitive code enter the code provided by the bank here”. What does oracle mean by “Code provided by Bank”? I am not sure about its relevance, still researching on it.

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Questions that might arise I am unable to select the bank accounts in the Bank Account Transfer screen? One needs to setup the UMX Security for the Legal entity to allow Bank Account Transfer transaction. This needs to be done from the User Management Responsibility.

I have cancelled my Bank Account Transfer by mistake … can this be undone? No you cannot undo a cancel action. The only workaround which you can follow is to Duplicate the cancelled BAT and make modifications as required.

Can I validate a Bank Account Transfer that has been already validated? Validate icon is not enabled for a BAT all the time; it is enabled only when the bank account transfers is in the status of New or Invalid

Can I Update a Bank Account Transfer at any point of time? Update icon is not enabled for a BAT all the time; it is enabled only when the bank account transfer is in the status of New, Validated, Invalid, or Rejected.

New Bank account created under a different legal entity is not available under the Source or Destination bank account fields LOV in the bank account transfer screen. What could be wrong? If you have not configured Cash Management for your Legal entity, oracle would prevent displaying such bank accounts belonging to that legal entity.

Why is that I am able to select the same bank account at the Source bank field and also at the destination bank account field as well, it does not make sense why system allows such a possibility I agree as well, this might have been fixed in the recent versions, I haven’t had chance to work on the most updated file versions to comment on this.

Which is the better option to choose from, i.e. settlement using Cash management or oracle payments?

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Select Settlement using Cash management, when the bank account transfer is made by the bank already and you are going to simply capture it in the system for record purposes. Select Settlement using Oracle payments, when a check needs to be issued from one bank account and deposited in another bank account

Should one go through all these pain, if source and destination bank share the same chart of account value for account segment for cash account … since from accounting perspective there is actually no difference. It purely depends on the company and its operational convenience, there is no mandate that one has to record the bank account transaction details in order to generate accounting entries. You can directly create a manual Subledger accounting entry in cash management or in General ledger, if transaction details are not required. Having transaction details would help you keep track of transfers and trace back in case of any issue.

What is the point in authorizing the transaction, when it exists in the same responsibility… it just looks like an additional step… If you have a super user access, i.e. all menus, submenus and functions are available to you, in which case performing Authorization as a separate step may not be any use. If you have Authorization required for your Bank Account Transfer, then you must make sure separate responsibilities are created to differentiate between the prepares of bank account transfer and the approvers of bank account transfers.

When settling a bank account transfer through oracle payments, one need to manually enter the Payment process profile in the Funds disbursement process manager responsibility, is there way to automate this action? As of now, it cannot be automated. It is the intended design. I agree it would be really helpful to have additional field at the Payment Template or the Bank Account Transfer screen where the input can be provided … so that all further steps purely depend on system processing activity and not for user inputs. I would expect oracle to provide a link between the Payment Method and payment process profile with reference to bank account transfer. Since for a BAT which settles through oracle payments we are forced to provide a payment method, similarly they can provide an additional field for payment process profile and make it mandatory OR, while defining the payment process profile we should have an option to link it with the payment method and state this profile is used for BAT purposes only, therefore upon selection of payment method, system should pick the relevant ppp automatically …. It’s just my theory… we might not know... How many millions lines of codes need to be written to achieve it … www.ivruksha.com

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What happens when I cancel my Bank account transfer before the cash flows are cleared …the accounting entries of creation and cancellation event are not enabled for accounting, in that case would there be any journal entries created? No, there won’t be any journal entries created in the system when a transaction is cancelled even before creation of journal entries for bank account transfer transaction.

I have uncleared the Cash Inflow related to the Bank Account Transfer, now the status of the Cash Inflow is changed to Created status, however I am unable to Cancel the Bank Account Transfer since the icon is not in enabled status You have to unclear both Cash Inflow and Cash Outflow in order to cancel a Bank Account Transfer. The cancel icon would get enabled only when the status of both the flows are in Created status.

I have cleared the Cash flows (both inflow and outflow) mistakenly, hence I have uncleared it, because of which system has generated accounting entries which reversed the original entry created at the time of clearing the bank account transfer cash flows. What needs to be done now? Accounting entries for bank account transfer gets created whenever the Cashflows are cleared or uncleared, and not at the time of creation or cancellation, which is the intended design. Hence the ideal step which you need to perform is to clear the Cash flows which would re-generate the original accounting entries.

Till what point one can unclear the cash flows related to the Bank Account Transfer, is there a restriction in place? From my test cases, what I have seen is system allows one to unclear the Cashflows even when the accounting entries are generated and transferred to general ledger and also the period was closed. Hence I would say there is no restriction; you can do it any time… which sounds like a flaw to me.

Why is that even after create accounting program is run, some of my cash flow status are displaying as partially accounted. Is this an issue with the accounting entries generated? This is not an issue or bug; it is an intended design of the product. Since creation and cancellation of bank account transfer is not eligible for accounting, system displays such a status in your front end screens but it is nothing to worry about.

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No, entries are created only at the time of clearing and unclearing and not during reconciliation .If reconciliation happens for an uncleared Cashflow, yes it would generate entries, else for a cleared transaction no entries are created upon reconciliation

Is there a concept of online accounting available in Cash management module? Not to my knowledge

How to modify or configure the sequence numbers that is getting generated for Bank Account Transfer number field? It is a system generated number based on cache size, which is also used by Oracle Payments; hence this cannot be changed or defined by users.

Can one cancel the BAT which is Cleared and Reconciled with the Bank Statement? You cannot, you have to first Unreconcile the transaction this will turn the status of the cash flow status from Reconciled to Created (not cleared), and once the status becomes created the cancel icon would be highlighted in the bank account transfer for you to cancel the BAT if required.

Is there a workflow that is available for configuration for the Authorizing the bank account transfer? No, there is no workflow, no hierarchical relationship when it comes to authorizing bank account transfer. Any person who has access to the function “Authorize Bank account transfers” can perform this activity.

Is it necessary that I need to complete all basic setups required for Payables Modules as well, if I am making BAT settlement through Oracle Payments? No, it is not necessary, components required for BAT settlement are payment process profile, payment format (XML publisher template), which can be configured even without implementing Oracle Payables.

On what basis one must decide which program to be run i.e. Create printed payment instruction or Create electronic payment instruction in the Funds disbursement process manager responsibility?

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Based on the Payment Process Profile configuration, selection of the payment instruction is done.

Should I clear my Cashflows first before reconciling it with my bank statement, or I can clear the Cashflow after reconciliation, what is the sequence one should follow? Even though Clearing and Reconciling are two different activities, reconciling a transaction would also perform the clearing activity but not the vice versa. You cannot clear your Cashflows after reconciliation, since reconciliation step would have taken care of your reconciliation activity. If reconciliation is done later, and you want system to generate accounting entries for the bank account transfer in which case you have to perform the clearing of cash flows in cash management.

Can the person who authorizes the bank account transfer also make modifications to the bank account transfer transaction? A Bank account transfer authorization is a completely separate function from bank account transfer update, hence even though you may have authorizing level access, but you are not allowed to make any update to the transaction.

When the settlement is through Oracle Payments, should I wait till the status of the BAT changes from Settlement in Process to Settled, since the payment department might take a day or so to complete their payment related activities from Funds Disbursement perspective, which is delaying the accounting aspect of BAT thereby resulting in incorrect view of books of accounts? You need not wait; BAT can be accounted even when the status is Settlement in Process. Only for BAT that are settled in cash management the status needs to be changed to Settled prior to creating journal entries.

Why there is a limitation from oracle whenever we do Bank Transfer Between two Non Functional Currency Bank Account? Oracle says, functionally there is no reason why the bank transfer should not be allowed to be made from one account to another account if the bank accounts have the same currency (different than the functional currency). However we don't allow right now as in the Bank Transfer screen we don't ask for Exchange rates anywhere. As such we will not know the amount in functional currency for which the debit and credit needs to be made. This is the main reason why we don't allow transfers if one of the currency is not functional currency. If we need to allow the transfer of currencies other than functional currencies we will need to make changes in the UI and also ask for Exchange Date, Exchange rate type and the Exchange Rate. Once we have this we need to make changes in the code to make sure that if different currencies are involved then we multiply by this exchange rate to arrive www.ivruksha.com

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at the amounts in functional currency.

Are there any Config urations related to Bank Account Transfer that cannot be deleted? Cash transaction sub types once created cannot be deleted or end dated. It can be Inactivated. Payment template once created cannot be deleted or end dated. It can be Inactivated.

Can you delete a Manual Journal entry created in Cash Management? Irrespective of the Module, you can delete the Manual Journal entry when it is in the status of Draft, Incomplete or Error.

Does the bank account transfer has any impact on oracle payables and oracle receivables modules?

No it does not; in fact you need not implement Oracle payables or Oracle Receivables in order to make use of the Bank Account Transfer functionality in cash management.

Why do we have a Subledger period close exceptions report available in cash management when cash management does not have any dedicated periods to open or close? Earlier in 11i, cash management module does not used to record any transactions on its own or create accounting entries, hence having a dedicated period open and close feature like all other Subledgers was redundant. However in release 12, introduction of bank account transfer has enhanced the scope of cash management module, now it is recording transactions and creating accounting entries as well, oracle should have considered to have dedicated period open and close logic for cash management now. Even though such logic does not exist at present, you can still run this report to identify transactions that are in Invalid status. I tried closing a period in GL for which in cash management I had an Invalid item, GL period was closed with Warning status, however period close program automatically fired Subledger period close exceptions report which displayed open items in cash management resulting out of bank account transfer. There is an indirect impact of having invalid or error or items with exceptions in Cash management, in order to finding out such transactions and fixing them, we can make use of this report.

Is there a way one can fix the ceiling on the amount that can be transferred, say maximum limit per bank account transfer? No, one cannot perform this through bank account transfer screens. I highly doubt maximum outlay and Maximum payment options from Bank account configuration can be of any help in our case, need to test this possibility. www.ivruksha.com

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Areas not covered in this Document I have not covered on below areas related to bank account transfer, Automatic creation of bank account transfers through Cash Leveling process Bank account transfer using bank charge bearer scenario

Sources of Information Oracle Cash Management User Guide Bank Account Transfer White Paper by Oracle Support - Doc ID 1276861.1

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INDEX for DEMONSTRATION DEMO 1

Basic Setup - Creation of Responsibilities

DEMO 2

Basic Setup - Creation of User Name and Assign Responsibilities

DEMO 3

Basic Setup - Creation of Multi Org Environment

DEMO 4

Basic Setup - Enable Currencies

DEMO 5

Basic Setup - Configure Currency Conversion Rates for Currencies

DEMO 6

Basic Setup - Configure Cash Management Module

DEMO 7

Basic Setup - Include Cash Management Application to Subledger Accounting Method

DEMO 8

Pre-requisite Setup - Enable Legal Entities for Bank Account Transfer

DEMO 9

Pre-requisite Setup - Create Banks, Bank Branches and Bank Accounts

DEMO 10 Pre-requisite Setup - Setup Payment document for the Bank Accounts

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DEMO 11

Pre-requisite Setup - Setup a Payment Process Profile for BAT (Printed Type – Check)

DEMO 12

Pre-requisite Setup - Setup a Payment Process Profile for BAT (Electronic Type – Wire)

DEMO 13

Pre-requisite Setup - Define Intracompany Balancing Rules

DEMO 14

Pre-requisite Setup - Define Inter company Accounts

DEMO 15

Pre-requisite Setup - Define Transaction Sub Type

DEMO 16

Pre-requisite Setup - Duplicate Transaction Sub Type

DEMO 17

Pre-requisite Setup - Update Transaction Sub Type

DEMO 18

Pre-requisite Setup - Define Payment Template for Bank Account Transfer (With Repetitive Code as YES)

DEMO 19

Pre-requisite Setup - Define Payment Template for Bank Account Transfer (With Repetitive Code as NO)

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DEMO 20

Pre-requisite Setup - Attach Funds Disbursement Process Manager responsibility and assign profile option

DEMO 21

Business Scenario - Bank Account Transfer from One Bank to another Bank within the same Legal Entity (Not settling through Oracle Payment and Without Authorization)

DEMO 22

Business Scenario – Bank Account Transfer from one Bank to another Bank within the same Legal Entity with Authorization (Not Settling through Oracle Payment)

DEMO 23

Business Scenario – Clear Bank Account Transfer Transactions

DEMO 24

Business Scenario – Bank Statement Reconciliation of Source Bank

DEMO 25

Business Scenario – Bank Statement Reconciliation of Destination Bank

DEMO 26

Business Scenario – Create Accounting for Bank Account Transfer

DEMO 27

Business Scenario – Bank Account Transfer from One Bank to Another Bank between two Legal Entities within the same Ledger

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DEMO 28

Business Scenario – Bank Account Transfer from One Bank to Another Bank between two Legal Entities pertaining to two different Ledgers

DEMO 29

Business Scenario – Bank Account Transfer from One Bank to Another Bank between two Legal Entities pertaining to two different Ledgers which belongs to two different Business Groups

DEMO 30

Business Scenario – Bank Account Transfer using Cash Transaction Subtype

DEMO 31

Business Scenario – Bank Account Transfer within Legal Entity using Payment Module – Payment Process Profile is of Printed Type

DEMO 32

Business Scenario – Bank Account Transfer within Legal Entity using Payment Module – Payment Process Profile is of Electronic Type

DEMO 33

Business Scenario – What happens to BAT when the Payment Instruction is Cancelled ...?

DEMO 34

Business Scenario – BAT using Payment Template with Repetitive Code as YES

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DEMO 35

Business Scenario – BAT using Payment Template with Repetitive Code as NO

DEMO 36

Business Scenario – Can you Cancel an BAT that is cleared, accounted, transferred to General Ledger ?

DEMO 37

Accounting Impact – Journal Entry for BAT within Legal Entity

DEMO 38

Accounting Impact – Journal Entry for BAT between Legal Entity Same Ledger

DEMO 39

Accounting Impact – Journal Entry for BAT between Legal Entity between Ledgers same Business Group

DEMO 40

Accounting Impact – Journal Entry for BAT between Legal Entity between Ledgers and between Business Groups

DEMO 41

Accounting Impact – Journal Entry at the time of Unclearing of BAT

DEMO 42

Accounting Impact – Why no Accounting entries at the time of BAT Creation and Cancellation

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DEMO 43

How to view the Bank Account Transfers created and prevent them from making any modifications

DEMO 44

Others - How to query/search an existing BAT

DEMO 45

Others - How to Cancel an BAT

DEMO 46

Others - How to Duplicate BAT transaction

DEMO 47

Others - How to Update BAT transaction

DEMO 48

Others - Manual Subledger Journal Entry in Cash Management

DEMO 49

Others – What happens when the Payment Template does not want Authorization, but the Cash Management Configuration is enabled for Authorization ?

DEMO 50

Others – What happens when the Payment Template wants Authorization, but the Cash Management Configuration is not enabled for Authorization

DEMO 51

Others - Errors and Mistakes committed during this presentation

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DEMO 52

Others - BUGS/Known Issues related to BAT for which Oracle has provided Fixes

DEMO 53

Business Scenario – Possible scenarios with currency combination

DEMO 54

Others – Setting up Descriptive Flexfields and making use of it in BAT

DEMO 55

Others – Define Payment Reason Codes

DEMO 56

Others – Reports

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Demo 1

Basic Setup - Creation of Responsibilities

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Switch Responsibility to System Administrator

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Navigate to Security > Responsibility > Define

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Create your own Cash Management responsibility with below details …

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Create your own General Ledger responsibility with below details …

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Create your own Accounts Payable responsibility with below details …

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Demo 2

Basic Setup - Creation of User Name and Assign Responsibilities

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Navigate to Security > User > Define

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Create a User Name and assign the responsibilities created earlier …

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Demo 3

Basic Setup – Creation of Multi Org Environment

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Create a Multi Org environment as depicted below for trying various business scenarios that can be possible in real time. BG 1

LEDGER 1 (USD)

BG 2

LEDGER 2 (INR)

LEDGER 3 (AUD)

LE 4

LE 1

LE 2

LE 3

OU 1

OU 2

OU 3

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OU 4

OU 5

Below is the Screen shot for the Structure. … BG 1 > Ledger 1 > LE 1 and LE 2 > OU 1 and OU 2

Below is the Screen shot for the Structure. … BG 1 > Ledger 2 > LE 3 > OU 3

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Below is the Screen shot for the Structure. … BG 2 > Ledger 3 > LE 4 > OU 4 and OU 5

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Demo 4

Basic Setup - Enable Currencies

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Switch responsibility to General Ledger

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Navigate to Setup > Currencies > Define

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Query your Currency and make sure the Enabled Checkbox is selected or not. For Demonstration purposes I have displayed only a single currency, however one must enable currencies as required by the Ledger, Bank Account and the Transaction requirements.

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Demo 5

Basic Setup - Configure Currency Conversion Rates for Currencies

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Navigate to Setup > Currencies > Rates > Daily

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Query for your currency combination and define exchange rate as required ….For Demonstration purposes I have selected a single combination between USD and INR.

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Demo 6

Basic Setup - Configure Cash Management Module

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Switch responsibility to your Cash Management Module … (For Operational Convenience I have created different responsibilities for each Legal Entity, whereas it is not required at all, you can have a single one.

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Navigate to Setup > System > System Parameters

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Select your Legal Entity and provide other details as shown below ….

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Demo 7

Basic Setup - Include Cash Management to your Subledger Accounting Method

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Switch Responsibility to Payables

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Navigate to Setup > Subledger Accounting Setup > Accounting Methods Builder > Methods and Definitions > Subledger Accounting Methods

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Find window appears….

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Select your Accounting method and click FIND button…

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Cash Management application is not found in the current SLAM, hence system cannot create accounting entries for the BAT transactions.

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Insert new record …

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Add the Cash Management application with a Start date which is earlier than your Bank Account Transfer transaction date.

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Run the concurrent program “Validate Application Accounting Definitions” for our Ledger…..

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Wait for completion of the concurrent program…

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Review the status of the Event Class, whether it is in VALID status or not …

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Demo 8

Pre-requisite Setup - Enable Legal Entities for Bank Account Transfer

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Login to the application as SYSADMIN

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Switch responsibility to User Management

Navigate to Roles & Role Inheritance

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Search for your responsibility “BAT – Cash Management” and click GO button

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Click “Security Wizards” button

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Click “Run Wizard” icon next to CE UMX Security Wizard

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Click Add Legal Entities button …

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Select Legal Entities as required …. and click Select button

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Check Use, Maintenance and Bank Account Transfers options and click Apply button

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Click Save / Apply button

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Demo 9

Pre-requisite Setup - Create Banks, Bank Branches and Bank Accounts

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Create Banks

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Create Bank Branches

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Create Bank Accounts

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Demo 10

Pre-requisite Setup - Setup Payment document for the Bank Accounts

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Switch responsibility to Cash Management

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Navigate to Setup > Banks > Bank Accounts

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Query for your Bank Account and click GO button

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Select your Bank Account and click on the Manage Payment Documents button

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Click Create button

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Create your Payment Document and click Apply button..

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Payment Document is created successfully…

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Demo 11

Pre-requisite Setup - Setup a Payment Process Profile for BAT (Printed Type – Check)

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Switch responsibility to Payables

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Navigate to Setup > Payment > Payment Administrator

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Payment Administrator home page appears …. Select Go To Task button for Payment Process Profile Task Name…

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Click Create button

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Enter required details and keep the processing Type as Printed. For the Payment Instruction Format I have used the seeded format provided by Oracle. Click Apply button

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Payment Process Profile for Check (Printed) type is created.

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Demo 12

Pre-requisite Setup - Setup a Payment Process Profile for BAT (Electronic Type – Wire)

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Click the Go To Task button next to Payment Process Profiles

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Click Create button

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Enter required details and keep the processing Type as Electronic. For the Payment Instruction format, I have used the seeded format provided by oracle. Click Apply button

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Payment Process Profile for Wire (Electronic) type is created.

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Demo 13

Pre-requisite Setup - Define Intracompany Balancing Rules

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Switch responsibility to “BAT – General Ledger”

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Navigate to Setup > Accounting Setup Manager > Accounting Setups

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Query for your Ledger and click “Update Accounting Options” icon

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Click Update icon next to “Intracompany Balancing Rules”

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Click update icon under Define Rules for your Legal Entity

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Below is the screen for performing the configuration….

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Enter the Source as OTHER, Category as OTHER

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Enter ALL OTHER for Debit and Credit Balancing Segment Value..

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Select your Debit Account and Credit Account as required…. And click Options tab

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Enter other configuration as below…. and click Apply button

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Enter other configuration as below…. and click Apply button

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Demo 14

Pre-requisite Setup – Define Inter company Accounts

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Navigate to Setup > Financials > Accounting Setup Manager > Accounting Setups

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Query your Ledger and click on the Update Accounting Options icon

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Click on the update icon for the Ledger options

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Click on the Define Relationships icon for LE 1 Legal Entity

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Click on Add Another Row button

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Enter All Other in all the fields and click on the Define Accounts icon

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Click Add Another Row button for Intercompany Receivables and Payables Accounts

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Enter the Account Code combination with Start date and Click Apply button

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Again, select Define Relationships icon for LE 2 Legal Entity

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Click Add Another Row button

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Enter All Other in all the fields and click on the Define Accounts icon

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Click Add Another Row button for Intercompany Receivables and Payables Accounts

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Enter the Account Code combination and Start Date. Click Apply button

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Click Done button

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Demo 15

Pre-requisite Setup - Define Transaction Sub Type

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Navigate to Setup > System > Transaction Subtype

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Click on the Create button

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Cash transaction subtype define page appears

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Enter the details on appropriate fields and click Apply button

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Transaction Subtype has been Created

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Demo 16

Pre-requisite Setup - Duplicate Transaction Sub Type

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Query for a Transaction Type and click GO button

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Click Duplicate button

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Change the details defaulted by the system to the ones you require and click Apply button

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New Transaction Subtype has been created by way of Duplication.

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Demo 17

Pre-requisite Setup - Update Transaction Sub Type

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Query for the newly created (from Duplication) transaction type and click GO button.

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Click Update icon

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Select a transaction subtype under the field Subtype Parent Name

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After selection, click Apply button.

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The changes have been updated/Saved ..

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Demo 18

Pre-requisite Setup - Define Payment Template for Bank Account Transfer (With Repetitive Code as YES)

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Navigate to Setup > System > Payment Template

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Click Create button

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This screen looks very similar to the BAT creation screen ……

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Enter the details as required with Repetitive Code as YES… and click the Payment Details Tab.

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I am leaving this tab as blank … Click Apply button

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Payment Template is created successfully.

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Demo 19

Pre-requisite Setup - Define Payment Template for Bank Account Transfer (With Repetitive Code as NO)

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Navigate to Setup > System > Payment Template

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Click Create button

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Enter the details as required with Repetitive Code as NO….. and click the Payment Details Tab.

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I am leaving this tab as blank … Click Apply button

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Payment Template is Created successfully..

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Demo 20

Pre-requisite Setup - Attach Funds Disbursement Process Manager responsibility and assign profile option

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Switch responsibility to System Administrator

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Navigate to Security > User > Define

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Query for your User Name …

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Add a new record

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Select the seeded responsibility “ Funds Disbursement Process Manager”

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Save the changes

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Navigate to Profile > System

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Select the responsibility as Funds Disbursement Process Manager and the Profile as MO: Operating Unit and click FIND button.

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Set your Operating unit at the Responsibility Level…

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Save the Changes made …

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Demo 21

Business Scenario – Bank Account Transfer from One Bank to another Bank within the same Legal Entity (Not settling through Oracle Payment and without Authorization)

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Data used for the Scenario…. BG 1 (Business Group)

LEDGER 1 (Ledger)

LE 1 (Legal Entity)

LE 1 - ABC Bank (Source Bank)

LE 1 - XYZ Bank (Destination Bank)

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Navigate to Bank Account Transfers

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Click Create button

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Change the default value of “Settle Transactions Through Oracle Payments” to NO

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You can see a new field called Bank Reference Number appear …

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Enter the details of Transfer Date, Currency, Transfer Amount and Comments Click the LOV button for the Source Bank Account

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Select the Source Bank from which the funds is going to be transferred

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Selected Source Bank appears in the screen..

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Similarly select the Destination bank account to which funds are to be transferred.

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Click Apply button

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Click Validate icon, status now appears as NEW

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The transaction is validated and the status is changed to SETTLED

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Click the Transfer Number i.e. 88

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Click View Cashflows button

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Click Show button on both the cash flow numbers

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You can see the Source Bank has the direction stated as OUTFLOW and the Destination Bank has the direction stated as INFLOW

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Detailed view of the Cash flow for the Direction Inflow is shown below

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Detailed view of the Cash flow for the Direction Outflow is shown below.

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Demo 22

Bank Account Transfer from one Bank to another Bank within the same Legal Entity with Bank Authorization (Not Settling through Oracle Payment)

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Navigate to Setup > System > System Parameters

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Select Cash Management Transactions Tab….

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Currently the configuration is set for Not Required …

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Change the configuration for Authorization field to Required ..

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Click Create button

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Enter details for Bank Account Transfer and click on the Apply button..

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Current status of the BAT is New, click on the Validate button….

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The status is now changed to Validated. Earlier i.e. when authorization was not required, the status would directly get changed to Settled, since authorization is now required …the status is not changed to Settled at the validation stage.

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Navigate to Authorize Bank Account Transfers

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The Bank account transfer we created automatically appears in the screen ……

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Select the Checkbox and click Authorize Transfers button….

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System would seek your confirmation in proceeding further … Click YES button

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Bank Account transfer has been authorized ..

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If you re-query your BAT, you can see the status is now changed to Settled from Validated

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Demo 23

Business Scenario - Clear Bank Account Transfer Transactions

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Navigate to Bank Statements > Manual Clearing > Clear Transactions

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Uncheck AR Receipt, AP Payment and Miscellaneous options

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Click on the Account Number LOV button.

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Select the Source Bank Account first and click OK

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Click FIND button

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Now there are so many transactions, finding the one relevant to our transaction is difficult, hence to find the record related to our transaction click on the REFERENCE tab….

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The Reference Tab contains the Cash Flow reference number, out cash flow reference number is 65.

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Select the Checkbox for that record and Click on the Clear Transaction button

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The transaction is now in cleared status.

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Similarly select the Destination bank account details and click FIND button

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Click on the Reference tab to identify our transaction

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Our Cash flow reference for the destination bank is 66.

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Select that record and click Clear Transaction button

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Transaction is now in cleared status.

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If you re-query your Bank Account transfer you can see the Status of the Cash Flow is changed to Cleared … earlier this was in Created Status

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Demo 24

Business Scenario - Bank Statement Reconciliation of Source Bank

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Switch Responsibility to Cash Management

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Navigate to Bank Statements > Bank Statements and Reconciliation

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Click New button to create a new bank statement

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Click on the LOV button next to Account Number in order to select your Bank …

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I am selecting the Source bank account …

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Enter all other required fields and click on the Available button.

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Uncheck all other options and keep only Cash Management Cashflow alone

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Click Find button…

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All transactions that are available for reconciliation are displayed here.

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Select the transaction which you wanted to reconcile and click on the Reconcile button.

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Click on the Available button

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You can see the transaction reconciled earlier now appears in this section and the status is updated as Reconciled.

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Demo 25

Business Scenario - Bank Statement Reconciliation of Destination Bank

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Navigate to Bank Statements > Bank Statements and Reconciliation

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Click New button in order to create a new bank statement

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Click on the LOV button to select the Bank Account

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Select your Destination bank account

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Enter the required details and click on the Available button

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Uncheck all other options and keep Cash Management Cashflow option alone checked and click on the Find button.

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Transactions available for reconciliation are displayed below ….

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Select the Transaction that needs to be reconciled and click on the Reconcile button.

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Click on the Available button..

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The transaction reconciled now appears in this section and the status is updated as Reconciled.

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Query your Bank Account Transfer for which the reconciliation of Cash flows were made earlier …. The status of BAT remains as Settled …. Click on the Transfer Number link..

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Click on the View Cashflows button

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The status of the Cash flow is now in Reconciled Status. Click on the Cashflow Number

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The Cashflow (Inflow) status is Reconciled, and the Accounting Status appear as Partially Accounted.

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The Cashflow (Outflow) status is Reconciled, and the Accounting Status appear as Partially Accounted.

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Demo 26

Business Scenario – Create Accounting for Bank Account Transfer

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Navigate to Other > Concurrent

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Click Submit a New Request button

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Select Single Request option and click OK button

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Select Create Accounting program and click OK button

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Enter parameters as show below…

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Click Submit button

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Wait till the program gets completed ..

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Output of Create Accounting program is given below ….One Bank Account Transfer would generate two sets of accounting entries one for the Source Bank and another for the Destination Bank.

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Navigate to Journals > Enter

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Select your Ledger, Source and Period and Click FIND button

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The entry created in Cash Management is transferred to General Ledger in UNPOSTED status. Click Review Journal button…

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Click POST button..

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Concurrent request is submitted for completing the posting process….

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The Journal entry is now in Posted Status

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Demo 27

Business Scenario – Bank Account Transfer from One Bank to Another Bank between two Legal Entities within the same Ledger

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LEDGER 1 (Ledger)

LE 1 (Legal Entity)

LE 2 (Legal Entity)


LE 2 – DEF Bank (Destination Bank)

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Click Create button

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Enter the required details. The Source bank and Destination bank belong to two different Legal entities but they belong to the same Ledger…. Click on the Apply button.

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Bank Account Transfer is created .. Click on the Validate icon

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Bank Account Transfer is validated and the status is changed to Settled

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Clear Cash flow for the Source bank

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Clear Cashflow for the Destination bank

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The Cash flow status of the bank account transfer is now changed to Cleared

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Demo 28

Business Scenario – Bank Account Transfer from One Bank to Another Bank between two Legal Entities pertaining to two different Ledgers

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LEDGER 1 (Ledger)

LEDGER 2 (Ledger)

LE 1 (Legal Entity)

LE 3 (Legal Entity)


LE 3 – Bank (Destination Bank)

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Click Create button

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Enter the required details. Source bank account belongs to LE 1 and Ledger 1 The Destination bank account belongs to LE 3 and Ledger 2. Click Apply button

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Bank Account Transfer is created. Click on the Validate icon

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Bank Account Transfer is validated, now the status is changed to Settled

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Clear cash flow for the Source bank

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Clear cash flow for the Destination bank

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Cash flows for the bank account transfer is now changed to Cleared status

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Create Accounting for the Source bank accounts Ledger

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Accounting entry generated for the Source ledger

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Create Accounting for the Destination bank accounts Ledger

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Accounting entry generated by the system

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Demo 29

Business Scenario – Bank Account Transfer from One Bank to Another Bank between two Legal Entities pertaining to two different Ledgers which belongs to two different Business Groups

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BG 2 (Business Group)

LEDGER 1 (Ledger)

LEDGER 3 (Ledger)

LE 1 (Legal Entity)

LE 4 (Legal Entity)


LE 4 – Bank (Destination Bank)

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Click Create button

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Enter all required details. The source bank belongs to BG 1, LE 1 and Ledger 1 The Destination bank belongs to BG 2, LE 4 and Ledger 3 Click Apply button

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Bank Account Transfer is created. Click on the Validate button

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Bank Account Transfer is validated and the status is changed to Settled.

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The Cashflows pertaining to the Bank account transfer is in the status of created

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Select the Source bank account and Cash Management Cashflow option and click FIND button

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Select the Cash flow and click Clear Transaction button

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Switch responsibility to Cash Management responsibility of BG 2

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Select your Bank Account and Cash Management Cashflow option and click FIND button

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Select your Cashflow and Click on the Clear Transaction button

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Cash flow status is changed to Cleared

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Create Accounting for the Source Bank Accounts Ledger

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Accounting entry created for the source ledger

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Create Accounting for the Destination bank accounts ledger

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Accounting entry created for the destination bank accounts ledger

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Demo 30

Business Scenario – Bank Account

Transfer using Cash Transaction Subtype

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Click Create button

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Select a Transaction Subtype from the List of Values

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Enter all other necessary information required for BAT and click Apply button

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Click Validate icon

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The status is now changed to Validated

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Select the Bank Account Transfer and click on the Authorize Transfers button

Click YES button

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Bank Account Transfer has been Authorization

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Status of the BAT is now changed to Settled

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Demo 31 Business Scenario – Bank Account Transfer

within Legal Entity using Payment Module – Payment Profile is of Printed Type

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Click Create button

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Select Settle Transaction Through Oracle Payments option as YES, and enter all other required information and click Payment Details TAB

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Select the Payment Method as Check and click Apply button.

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Bank Account Transfer is created … Click on the Validate icon

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Bank Account Transfer is now Validated

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Select your Bank Account Transfer and click Authorize Transfers

Click YES button

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Bank Account Transfer is Authorized

At this point of time, system submits a concurrent program called Build Payments

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The current status of your Bank Account Transfer would change from Validated to Settlement in Process

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Switch responsibility to Funds Disbursement Process Manager

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Click on the “0” link next to Payment Process Requests Awaiting User Action

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You can see there is a payment process request pending action …. Click Take Action icon

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System needs the Payment Process Profile Information to proceed further

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Select the Payment Process Profile information from the List of Values…

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Now there is no pending action remaining to be completed, hence the transaction does not appear.

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Click on the Create Printed Payment Instructions link…

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Provide a name for your Request and click Next button…

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Select your values for Payment Process Profile, Internal Bank Account and Payment Document Parameters and click Next button

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Keep the defaults, click on the Next button

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Keep the defaults, Click on the Next button

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Keep the defaults, Click on the Next button

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Click on the Submit button

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System submits a concurrent program….. Click OK button

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Below requests were submitted and completed successfully (The parameter value of 52559 indicates your Payment Instruction Reference number)

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Click on the “0” link next to Payment Instructions Awaiting User Action

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Current status of the Payment Instruction is , it awaits printing…. Click on the Take Action icon..

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Click on the Print button.

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Payment Instruction is now sent for Printing ….

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Now again, click on the Take Action icon….

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If you are satisfied with the printed output, you can Record Print Status, else if you want to print it again, select Reprint . I am selecting Record Print Status in this case..

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Click Continue button…

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Click Apply button.

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The print status of the payment Instruction is now confirmed

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Query the Payment Instruction 52559 in the Payment Instructions tab, you can see the status is now changed to Printed and no further action is required to be taken at this point of time…

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If you query your Bank Account Transfer now in Cash management the status would be changed to Settled.

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This is purely optional, if you wanted to print the Payment Instruction Register you can do so for your Payment Instruction. Click on the Submit Payment Instruction Register icon next to your Payment Instruction..

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Enter a Request Name and click on the Next button..

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Select your Payment Instruction reference and the Payment register format from the List of Values. Click Next button

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Keep the defaults, click on Next button

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Click on Submit button

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System submits a concurrent program….. Click OK button

Once the program gets completed successfully, click the view output button….

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Below is the output generated by system for the Payment Instruction Register …..

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within Legal Entity using Payment Module – Payment Profile is of Electronic Type

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Click on Create button

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Enter all required details and click on the Payment Details Tab

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Select the Payment Method as Electronic and Click Apply button

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Bank Account Transfer is Created ….. Click on the Validate icon…

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Bank Account Transfer is Validated …

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Select your Bank Account Transfer and click Authorize Transfers button..

Click YES button…..

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Bank Account Transfer is authorized ….

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The status of the Bank Account Transfer is now in “Settlement in Process”

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Click “0” next to Payment Process Requests Awaiting User Action ….

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Click Take Action icon on the Payment Process Request that awaits action….

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Select a Payment Process Profile of Wire / Electronic type from the List of Values .. and click GO button..

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Concurrent request gets submitted ….

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Click on the Create Electronic Payment Instructions link….

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Enter a request name .. and click on the Next button

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Select your Payment Process Profile used earlier and click Next button

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Keep the defaults, click on the Next button

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Keep the defaults, and Click on the Next button

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Keep the defaults and click on the Next button

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Click Submit button…

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System has initiated a concurrent program … click OK button..

Concurrent program has been completed successfully … the parameter value is the Payment Instruction Reference ….

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Query the Payment Instruction created by the system, as you can see the Status is changed to Formatted and there is no further action required …( Had it been a Printed payment instruction, we should submit it for printing and then record the print status, since this is electronic, such additional steps were not required..)

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Bank Account Transfer status is now changed to Settled …

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Demo 33

Business Scenario – What happens to

BAT when the Payment Instruction is Cancelled ...?

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Click on the Payment Instructions Tab …

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Query for your Payment Instruction .. and click on the Void All Payments icon

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Click Apply button…

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Click Yes button

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Payment Instruction voided the payment

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Now query the Payment Instruction again , the status is now changed from Printed to Terminated .. Click on the Payment Reference Number link…

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Click on the Amount link …

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Click on the Reference Number link..

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The status is now displayed as Removed – Payment Voided , and the bank account transfer number is 120…

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Query for the Bank Account Transfer transaction, the status is now changed to Canceled. Click on the Transfer Number link …

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The Cashflow details does not appear in the screen, as a result.

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using Payment Template with Repetitive Code as YES

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Click Create button

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Click on the LOV button next to Payment Template field

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Select the Template which has Repetitive enabled as Yes.

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As you can see all the values are defaulted as defined in the payment Template. Since the Payment template is of repetitive type, you cannot modify the Source / Destination Bank Account details, they are disabled for any updates.

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Enter the Transfer Date and Click on the Apply button

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BAT has been Created ….. Currently the status is NEW Click the Validate icon

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Status is now changed to Validated

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Select your Bank Account Transfer and click on Authorize Transfers

Click YES

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Bank Account Transfer has been Authorized….

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The status of the BAT is now changed to Settled

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using Payment Template with Repetitive Code as NO

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Click Create button

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Click on the LOV button next to the Payment Template field

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Select the Template which has Repetitive option not enabled

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All the details are defaulted as defined in the Payment Template, since the Repetitive option is NO for this template, you are allowed to change the Bank Account details before completing it.

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Enter the Transfer Date and click on the Apply button

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BAT is created … The initial status of the BAT is NEW Click on the Validate icon

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The status is now changed to Validated

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Select your BAT transaction and click on the Authorize Transfers

Click YES button

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Bank Account Transfer has been Authorized

The BAT status has now been changed to Settled.

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Demo 36 Business Scenario – Can you Cancel a Bank

Account Transfer that is cleared, accounted, transferred to General Ledger ?

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Create a Bank Account Transfer and click Apply button

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Click Validate icon

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The status of the BAT is now in Settlement in Process

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Switch responsibility to Funds Disbursement Process Manager and select your Payment process request and click on the Take Action button

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Enter the Payment Process Profile and Click Go button

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Run the Create Electronic Payment Instruction program …

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Payment Instruction Creation is completed …

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The Bank Account Transfer status is now Settled

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Clear the Cash flow transaction of Source Bank…

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Clear the cash flow transaction of Destination bank

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Reconcile the cleared Transaction for Source Bank

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Reconcile the Cleared transaction for Destination bank

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Cash flows now appear as Reconciled

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Create Accounting for the BAT transaction

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System Generated Accounting entries

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Accounting entry is transferred to general ledger and it appears in posted status

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Unreconcile the cash flow for the Source bank

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Unreconcile the cash flow for the destination bank

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Click on the Transfer Number link…

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The cash flow status have been changed from Reconciled to Created, now the bank Account transfer can be cancelled

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Click on the Cancel icon

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System displays the warning message ….Click Yes button

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Bank Account transfer is canceled now.

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Accounting entry is generated by the system for Unreconciling the cash flows

Hence to sum up, YES we can cancel a BAT, even it if accounted and transferred to General Ledger module in a step by step manner

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Demo 37

Accounting Impact – Journal Entry for BAT within Legal Entity

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Below is the Bank Account Transfer transaction, between two banks that belong to same Legal Entity.

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After running Create Accounting, system generated two sets of accounting entries for the Transaction, one for the Source Bank and another is for the Destination Bank.

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The Account codes used at the Intracompany Balancing Rules are show below

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Account Codes used by ABC Bank i.e. Source Bank is show below

Account Codes used by XYZ Bank i.e. Destination Bank is show below

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Accounting entry generated by the system for the Source Bank Accounting Class

Account

Debit

Miscellaneous Expense

01-000-1214-0000-000

90,000

Cash

01-000-1150-0000-000

Credit

Source of the Account Code Combination Intracompany Balancing Rules

90,000

Source Bank Cash Account

Miscellaneous Expense Account is more of a Clearing account which means it is temporary account which does not carry balance all the time. All clearing accounts are normally of expense type, hence they are treated as Nominal Account, as per the accounting rule …. DEBIT all expenses and losses and CREDIT all incomes and Gains … since this is an expense for the Source bank this account is Debited …. Cash is the real account, as per the accounting rule… DEBIT what comes in and CREDIT what goes out …. Since for the Source Bank Cash is going out, the account is being credited …

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Accounting entry generated by the system for the Destination Bank Accounting Class

Account

Debit

Cash

01-000-1110-0000-000

90,000


01-000-1214-0000-000

Credit

Source of the Account Code Combination Destination Bank Cash Account

90,000

Intracompany Balancing Rules

Miscellaneous Expense Account is credited as a result this clearing account is nullified and does not carry any balance. Cash is the real account, as per the accounting rule… DEBIT what comes in and CREDIT what goes out …. Since for the Destination Bank Cash is coming in, hence the account is being debited.

Resulting Net entry is… Accounting Class

Account

Debit

Cash

01-000-1110-0000-000

90,000

Cash

01-000-1150-0000-000

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Credit


90,000


Demo 38

Accounting Impact – Journal Entry for BAT between Legal Entity Same Ledger

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Below is the Bank Account Transfer transaction, between two banks that belong to different Legal Entities but share the same Ledger

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After running Create Accounting, system generated two sets of accounting entries for the Transaction, one for the Source Bank and another is for the Destination Bank.

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The Account codes used at the Inter company Accounts for LE 1 and Ledger 1 are show below

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Account Codes used by DEF Bank i.e. Destination Bank is show below

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Accounting entry generated by the system for the Source Bank is Accounting Class

Account

Debit


01-000-1310-0000-000

1,12,233

Cash

01-000-1150-0000-000

Credit

Source of the Account Code Combination Refer Intercompany Receivable Account code combination

1,12,233


Accounting entry generated by the system for the Destination Bank is Accounting Class

Account

Debit

Cash

02-000-1110-0000-000

1,12,233


02-410-7650-0000-000

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Credit


1,12,233

Refer Intercompany Payable Account code combination

Demo 39

Accounting Impact – Journal Entry for BAT between Legal Entity between Ledger Same Business Group

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Below is the Bank Account Transfer transaction, between two banks that belong to different Legal Entities and two different Ledger

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Accounting entry generated by the system for the Source Bank and Ledger is

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Accounting entry generated by the system for the Destination Bank and Ledger is

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The Account codes used for the Currency Balancing Account at the Source Bank Accounts Ledger is shown below

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Account Codes used by LE 3 Bank i.e. Destination Bank is show below

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Accounting entry generated by the system for the Source Bank in Ledger 1 (USD) is Accounting Class

Account

Currency

Debit

Credit

Source of the Account Code Combination


01-000-1310-0000-000

INR

1,00,000

Cash

01-000-1150-0000-000

USD

1,666.67


Balance

01-000-5280-0000-000

INR

1,00,000

Entered Currency Balancing Account

Balance

01-000-5280-0000-000

USD

Refer Intercompany Receivable Account code combination

1,666.67


Accounting entry generated by the system for the Destination Bank in Ledger 2 (INR) is Accounting Class

Account

Currency

Debit

Cash

03-000-1620-0000-000

INR

1,00,000


03-000-4140-0000-000

INR

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Credit


1,00,000


Demo 40

Accounting Impact – Journal Entry for BAT between Legal Entity between Ledgers and between Business Groups

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Below is the Bank Account Transfer transaction, between two banks that belong to different Legal Entities , two different Ledgers and two different business groups

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The Account codes used for the Currency Balancing Account at the Source Bank Accounts Ledger is shown below

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Account Codes used by LE 4 Bank i.e. Destination Bank is show below

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Accounting entry created by the system for the source bank accounts ledger is

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Accounting entry created by the system for the destination bank accounts ledger

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Accounting entry generated by the system for the Source Bank in Ledger 1 (USD) is Accounting Class

Account

Currency

Debit

Credit

Source of the Account Code Combination


01-000-1310-0000-000

AUD

5,000

Cash

01-000-1150-0000-000

USD

500


Balance

01-000-5280-0000-000

AUD

5,000


Balance

01-000-5280-0000-000

USD

Refer Intercompany Receivable Account code combination

500


Accounting entry generated by the system for the Destination Bank in Ledger 3 (AUD) is Accounting Class

Account

Currency

Debit

Cash

05-000-1110-0000-000

AUD

5,000


05-000-6160-0000-000

AUD

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Credit


5,000


Demo 41

Accounting Impact – Journal Entry created at the time of Unclearing of Bank Account Transfer

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Below is the Bank Account Transfer transaction, between two banks that belong to the same legal entity, which is in canceled status.

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The Cash flows for the Bank Account Transfer are currently in Cleared status ..

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Below is the accounting entry generated by the system for Cash flows in Cleared status

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Now the cash flows are uncleared as a result the status is changed to Created

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Below is the accounting entry created when the cash flows are uncleared

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Accounting entry generated by the system when the Cash flows were Cleared (i.e. Original entry) Bank Account

For Source Bank Account For Destination Bank Account

Accounting Class

Account

Debit


01-000-1214-0000-000

10,000

Cash

01-000-1150-0000-000

Cash

01-000-1110-0000-000


01-000-1214-0000-000

Credit

10,000 10,000 10,000

Accounting entry generated by the system when the Cash flows were Cleared (i.e. Reversal entry) Bank Account

For Source Bank Account For Destination Bank Account

Accounting Class

Account


01-000-1214-0000-000

Cash

01-000-1150-0000-000

Cash

01-000-1110-0000-000


01-000-1214-0000-000

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Debit

Credit 10,000

10,000 10,000 10,000

Demo 42

Accounting Impact – Why no Accounting entries at the time of BAT Creation and Cancellation

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Oracle Seeded Accounting method does not have Journal Lines defined for Bank Account Transfer Cancelled and Created event type as a result Create Accounting option is unchecked . For those, hence it is intended design that no accounting entry is created for BAT Creation and Cancellation

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Demo 43

Others - How to view the Bank Account Transfers created and prevent them from making any modifications

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Navigate to View > Bank Account Transfers

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Bank Account Transfer query page appears ..

Enter your search criteria and click GO button..

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Results are fetched with status details. However users cannot take any further action on any of the available transactions Click on any Transfer Number to view the details of the complete BAT

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Details of the BAT is shown..

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Demo 44

Others - How to query/search an existing BAT

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You can see a query/search section in this page, which is to be used for searching existing BAT’s created

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Select the Drop down list to view the list of Criteria’s provided by Oracle for performing the searches.

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I have selected Transfer Number as the criteria and entered the value for such field and click GO button

System retrieved the Bank Account transfer …..

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I have made another search by Transfer Date and entered the value .. After which click the GO button

System retrieved the Bank Account transfer transactions matching the criteria ..

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In order to find the list of search criteria options provided by the system, you can Navigate to Lookups

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Query for CE_BAT_SEARCH_FIELDS lookup type, where the lookup values are stored

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You can see all the values that appear as the Search criteria are listed here….

Since the lookup is of Access Level “System”, it cannot be modified by us/users i.e. we Cannot create new codes and modify existing seeded ones provided by Oracle….

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Demo 45

Others - How to Cancel an BAT

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I have queried for all existing Bank Account Transfers ……. You can see that one cannot Cancel all BAT transactions, there are few which has the Cancel option disabled … With this we understand that, a Bank Account Transfer cannot be cancelled at any point of time..

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Transfer Number 88 and 103 is Cleared and Accounted in Cash Management Transfer Number 100 is only Cleared in Cash Management and NOT accounted. Hence from the above it is clear that if the cash flows are cleared, then one cannot Cancel the BAT, therefore one has to cancel the BAT prior to clearing of cash flows.

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Select a Bank Account Transfer, and click on the Cancel icon…

System provides the confirmation, that BAT is cancelled …

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The Cash flows does not appear when the BAT is in canceled status

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Demo 46

Others - How to Duplicate BAT transaction

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Queried for all existing bank account transfers, as you can see Duplicate option is enabled for all transactions irrespective of the Status of the Bank account Transfer….

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Select a Bank Account Transfer and click on the Duplicate button…

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System duplicates all information from the original bank account transfer transaction, if required the defaulted details can be modified, else one can continue to proceed with the defaulted status. Click Apply button..

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New Bank account transfer is created successfully based on the duplicated information.

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Demo 47

Others - How to Update BAT transaction

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Queried for all existing bank account transfers, as you can see Update Icon is enabled only for few selected transfers and not for all … One can update BAT that are in status of Invalid and New only .. One cannot update BAT that has been settled or canceled

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Click on the Update icon

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Click Apply and Validate button…

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Now the Status is changed to Settled, hence the update icon is no more enabled…

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Demo 48

Others - Manual Subledger Journal Entry in Cash Management

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Navigate to Setup > Subledger Accounting > Inquiries > Journal Entries

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Click Create Journal Entry

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This is the Manual Journal Entry Creation screen in Cash Management ….

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Enter the Header level information …..

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Enter Line level information… and click Calculate Totals button

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Now the totals appear in the screen …. Click Continue button to proceed further …

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Click Finish button…

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Journal Entry is created …. (But not transferred to General Ledger)

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Navigate to Other > Concurrent

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Click Submit a New Request button…

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Select Single Request and click OK button..

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Select the Concurrent program “Transfer Journal Entries to GL”

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Below are the required parameters that needs to be provided ….

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Click Submit button..

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Wait till the program gets completed …. Keep hitting the Refresh Data to see the change in status of the program

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Click View Output once the program is completed …

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Created Journal entry has been transferred to General Ledger successfully..

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Navigate to Journals > Enter

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Select the Source and Category for the Manual journal and click FIND button

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The Journal entry is not yet posted …. Click Post button

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Concurrent program is submitted by the system…

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Journal Entry is now in Posted Status

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Demo 49

Others - What happens when the Payment Template does not want Authorization, but the Cash Management Configuration is enabled for Authorization ?

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Cash Management Module is configured to have Authorization as mandatory for all Bank Account Transfers …

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Payment Template created for Bank Account Transfer asks for Authorization Preference, where it is stated as NO …

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Select your payment Template which defaults all information as required .. Click Apply button..

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Bank Account Transfer is Created … Click Validate button …

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Status of the BAT is changed to Settled. The BAT has not been sent for authorization, even though at the Module level, authorization was enabled.

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Demo 50

Others - What happens when the Payment Template wants Authorization, but the Cash Management Configuration is not enabled for Authorization ?

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Cash Management Module is configured NOT to have Authorization for all Bank Account Transfers …

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Payment Template created for Bank Account Transfer asks for Authorization Preference, where it is stated as YES …

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Select your payment Template which defaults all information as required .. Click Apply button..

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Bank Account Transfer is Created … Click Validate button …

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Status of the BAT is changed to Validated. Irrespective of the configuration done at the Module level, Authorization functionality depends on the Payment Template data only

Select your Bank Account Transfer and Click Authorize Transfers button

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BAT is now Authorized

Status of BAT is now changed to Settled.

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Demo 51

Others - Errors and Mistakes committed during this presentation

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Error 1 While making the Bank Account Transfer I have used a date which was not open in the General Ledger Module, hence system displayed the below error message.

Fix for the above Error Always make sure you use a date from an open Period in General Ledger module for performing bank account transfer. If the period is not open, please open the period first before making the transfer.

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Error 2 I tried to make a Bank Account Transfer for two banks within a single Legal entity, and received the below error message, since I have not defined the Intercompany Rules configuration

Fix for the above Error Make sure you perform Inter company balancing rules for the Legal Entity in your ledger configuration under the Accounting Setup Manager.

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Error 3 I have created another Bank Account under LE 2, which did not appear in the LOV for selection….

Fix for the above Error You have to configure the Cash Management Module for LE 2, only then Bank Accounts defined under LE 2 will be available for selection in the LOV window.

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Error 4 While creating a bank account transfer for Bank Accounts between two Legal Entities, received the below error.

Fix for the above Error You have to configure Intercompany Accounts which is mandatory for transactions between Legal Entities, in order to resolve the above error message.

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Error 5 While performing Create Accounting for the BAT, received the following error message and accounting did not happen.

Fix for the above Error The SLAM used for the Ledger did not have Cash Management Application included in it, hence make sure your Accounting method used in the Ledger has Cash Management

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Error 6 If you are creating a BAT where settlement is done through payables module, the Transfer date should be the date after the current date.

Fix for the above Error Change the Transfer date to a future date. ( Also make sure such future dates are open in the General Ledger Module) www.ivruksha.com

Error 7 When I tried to run the Create Payment Instruction program, system did not display the Internal Bank Account name in the List of Values which is the mandatory parameter value when your Payment Process Profile is of Printed Type.

Fix for the above Error The responsibility “Funds disbursement Process Manager” is a seeded responsibility which did not have MO: Operating unit profile option set for my Operating unit, later once set the Internal Bank Accounts were displayed in the List of Values.

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Error 8 When bank account transfers are settled with Oracle Payments, Payment Method data is mandatory (even though it is not indicated with an * mark …)

Fix for the above Error Provide the Payment method data in the field

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Error 9 When you try to use the same Bank Account as Source and Destination Bank… when Apply button is clicked, system displays the error message .

Fix for the above Error Do not use the same bank account as Source and Destination as it is totally redundant

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Error 10 While performing Create Accounting for an BAT transaction happened between two Legal Entities below error message appears

Fix for the above Error I have used Intercompany Account as a Parent Account, which is incorrect. The Intercompany account was corrected with a child account, which fixed the issue.

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Error 11 I tried to create a transfer in a currency that is not related to the Source Bank and Destination Bank Accounts Currency

Fix for the above Error Use either Source Bank Accounts currency or Destination Bank Accounts Currency

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Error 12 When created accounting for the bank account transfer between two different ledgers whose functional currencies are different, system displayed the below error message

Fix for the above Error This is an Setup Issue. For a cross currency transaction, rounding account and entered currency balancing account needs to be defined, which was not done. Hence to fix the setup both the accounts for your ledger from the Accounting Setup Manager

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Error 13 When created accounting for the bank account transfer between two different ledgers whose functional currencies are different, the exchange rate was not defined for the date of Transfer.

Fix for the above Error This is an Setup Issue. Currency Exchange rate for the Transfer date is defined to fix the issue.

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Demo 52

Others - BUGS/Known Issues related to BAT for which Oracle has provided Fixes

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Issue is, if you look at the below highlighted part on the screen i.e. “0” , it means that there are nothing awaiting user action, whereas if you click on that “0”, you would see the list of requests that are awaiting your action …. This is an Bug in the Product

Refer Doc ID 1304348.1 - Funds Disbursement Process Home Page Not Showing Payment Process Requests (PPRs) Awaiting User Action which suggests Patch application

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By default the value for Settle Transactions Through Oracle Payments is YES, however predominantly users would select option as NO for performing BAT, this is causing inconvenience for the users to change the value…Hence the default value should be NO instead of YES

Refer Doc ID 1437895.1 - R12: Bank Account Transfer: Settle Transactions Through Oracle Payments Default Value Should Be "No" which suggests Patch application

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Even when you end date your Bank Account, the bank names still appear in the Source Bank and Destination Bank LOV button ….

Refer Doc ID 1308427.1 - Bank Account Transfer Is Being Allowed Even After Bank Account Has Been End Dated which suggests Patch application

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Demo 53

Business Scenario – Possible scenarios with currency combination

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Source Ledger = USD, Source Bank Currency = USD, Destination Ledger = NA, Destination Bank Currency = USD, Transaction Currency = USD

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Source Ledger = USD, Source Bank Currency = USD, Destination Ledger = NA, Destination Bank Currency = USD, Transaction Currency = INR

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Source Ledger = USD, Source Bank Currency = USD, Destination Ledger = NA, Destination Bank Currency = GBP, Transaction Currency = INR

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Source Ledger = USD, Source Bank Currency = GBP, Destination Ledger = NA, Destination Bank Currency = AED, Transaction Currency = USD

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Source Ledger = USD, Source Bank Currency = USD, Destination Ledger = NA, Destination Bank Currency = GBP, Transaction Currency = GBP

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Source Ledger = USD, Source Bank Currency = USD, Destination Ledger = INR, Destination Bank Currency = INR, Transaction Currency = USD

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Source Ledger = USD, Source Bank Currency = USD, Destination Ledger = INR, Destination Bank Currency = INR, Transaction Currency = INR

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Source Ledger = USD, Source Bank Currency = GBP, Destination Ledger = INR, Destination Bank Currency = INR, Transaction Currency = GBP

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Demo 54

Others – Setting up Descriptive Flexfields and making use of it in BAT

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If you view the Create Bank Account Transfer, under Payment Details TAB, you can Locate the Descriptive flexfield available for Bank Account Transfer. To know the Name Of the DFF, click on the ‘About this Page’ link

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You can see the Flexfield Name and the Application details of that DFF

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Navigate to Setup > Miscellaneous > Flexfields > Descriptive > Segments

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Click the FIND icon from toolbar

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Select the Flefield title as shown below and click OK button

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I am creating a dummy segment in the DFF

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Freeze the flexfield and Compile the Flexfield

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Now you can see the dummy field I have created in DFF appears in the Bank Account Transfer creation screen.

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Enter all basic details required for a bank account transfer and click on the Payment Details TAB

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Enter any value for the DFF field we have defined and click Apply button

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Bank Account Transfer is Validated and Settled. Click on the Transfer Number

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You can see the Value is saved against the BAT and it is available all the time..

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If you navigate to the Payment Template creation screen, you can see that there is no DFF region available, hence you cannot use DFF values at the template stage, it needs to be entered during run time only.

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Demo 55

Others – Define Payment Reason Codes

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Select the Go To Task icon next to Payment Reason Codes

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Click Create button

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Enter required details and click on Apply button

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Payment Reason Code is created successfully

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If you navigate to the Bank Account Transfer creation screen and select the LOV button available next to Payment Reason field, you would now see your Payment Reason code.

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You can select the Payment Reason code during your Bank account transfer creation

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The data continue to appear even after the Bank Account Transfer is settled.

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Demo 56

Others – Reports

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Select the “Cleared Transactions Report” with below mentioned parameters

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Below is the report output, that only displays the details of the Cleared Transactions

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Select the “Transactions Available for Reconciliation Report” with below mentioned parameters

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Below is the report output, that only displays the unreconciled items

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Select the “Subledger Period Close Exceptions Report” with below mentioned parameters

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Below is the report output, that only displays the transactions that are having Exceptions

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Thank You for your Time and Patience …. !!

Send your Feedback to [email protected] www.ivruksha.com

R12 - Bank Account Transfer Ver 1.0

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