Period End Process In Cash Management R12:
Oracle Cash Management is an enterprise cash management solution that helps you effectively manage and control the cash cycle. It provides comprehensive bank reconciliation, bank, bank branches & internal bank accounts setup, intra-bank account transfers, cash pooling and flexible cash forecasting. The Bank Reconciliation process enables the verification of entries on the Bank Statement by reconciling that information with system transactions in Oracle Payables, Oracle Receivables and Oracle General Ledger.
During the Bank Reconciliation process miscellaneous transactions can be created for bank-originated entries, such as bank charges and interest. Cash forecasting is a planning tool that helps anticipate the flow of cash in and out of the enterprise, allowing the projection of cash needs and evaluation of the company's
liquidity position.
Procedures
The following steps are taken in performing period-end processing for Oracle Cash Management.
1. Complete Daily Cash Management Activities
Complete bank account transfers for the day, validate them, if necessary, and send payment instructions to the bank.
2. Load Bank Statements
Detailed information from each bank statement, including bank account information, deposits received by the bank, and checks cleared needs to be entered into Cash Management. Bank statements can be either manually entered or loaded electronically from information received directly from your bank. For organizations with high transaction volumes bank statements should be loaded and reconciled on a daily basis.
3. Generate Sweep Transactions
If you have target balance or zero balance accounts (ZBA) with your banks, you can automatically generate system transactions to match banking information once the bank posts the sweeps. Once the bank statements are imported, run the Sweep Transaction Generation concurrent program. The program will scan the bank statement for sweep lines and, based on the cash pool setup in the system, create sweep transactions between your internal bank accounts, which can be accounted for and subsequently reconciled.
4. Create Bank Statement Cashflows
If you have recurring items such as bank fees and interest appear on your bank statement, you can use the Bank Statement Cashflow Creation program to create system transactions (cash flows) to match banking information . Once the bank statements are imported, run the Bank Statement Creation concurrent program. This program will scan the bank statement for specific codes, as defined in the Bank Statement Cashflow Mapping, and create cashflows, which can be accounted for and subsequently reconciled.
5. Reconcile Bank Statements
Once detailed bank statement information has been entered into Cash Management, the information must be reconciled with the subledger transactions. Cash Management provides two methods to undertake reconciliations:
a) Automatic
Bank statement details are automatically matched and reconciled with subledger transactions. This method is ideally suited for bank accounts which have a high volume of transactions.
b) Manual
This method requires a manual match of bank statement details with subledger transactions. This method is ideally suited to reconciling bank accounts which have a small volume of monthly transactions. The manual reconciliation method can also be used to reconcile any bank statement details, which could not be reconciled automatically.
6. Create Miscellaneous Transactions
During the reconciliation process, miscellaneous transactions for bank-originated entries, such as bank charges and errors can be created. Oracle Payables payments or Oracle Receivables receipts can also be manually created.
Note: The automatic reconciliation process can be set up to create miscellaneous transactions automatically.
Attention: If you create transactions during the reconciliation process, you will need to re-run the ‘Create Accounting’ routine from Oracle Receivables to ensure all information is transferred to the General Ledger.
6a.Complete Bank Transfers
Complete the bank account transfer whether it is manual or automatic and record the validation if required before completing the transfer.
7. Review Auto-Reconciliation Execution Report
Once the reconciliation process has been completed, reviewing the reconciliation results is recommended.
This report shows import and reconciliation errors that occurred when running the Auto-Reconciliation program. Cash Management automatically produces this report during the automatic reconciliation process. You may also request it as needed from the Submit Request window. This report includes either statement import errors, which prevented the automatic loading of your bank statement, or your reconciliation exceptions found during the automatic reconciliation process. This report lists the details of any miscellaneous transactions that were created in Receivables during the automatic reconciliation process.
8. Resolve Exceptions on the Auto-Reconciliation Execution Report
Resolve the exceptions on the Auto-Reconciliation Execution report by either rerunning the import process or by manually reconciling the exceptions.
9. Run Bank Statement Detail Report
This report shows statement and transaction information for a specific bank account statement, including bank statement header information, statement line detail, and reconciled transaction detail. This report lists any un-reconciled transactions separately with their current status, and the statement totals for each type of transaction, including the amount entered, reconciled, un-reconciled, over-reconciled and under-reconciled, and gives you the option to select only un-reconciled statement lines.
10. Run Transactions Available for Reconciliation Report
This report shows all transactions available for reconciliation for a specific bank account. It lists detailed transaction information for your Available Receipts, Available Payment, and Available Journal Entries for reconciliation. Detailed information includes the Customer, Supplier or Batch Name, Transaction Date,
Payment Method, Transaction Number, Currency, and Amount. This report only lists void payments if the Show Void Payments option on the Systems Parameters window is checked. It does not list reversed receipts due to user error nor does it list the associated original receipts that were not reconciled. This
report groups transactions by status so that void or reversed transactions are separate from other transactions.
11. Resolve Un-reconciled Statement Lines
Resolve the un-reconciled statement lines by manually reconciling the statement lines to the available transactions.
12. Post to General Ledger
Create journal entries for eligible accounting events generated by Bank Account Transfers and Bank Statement Cash Flows by submitting "Create Accounting" concurrent program. The program creates and optionally transfers and posts journal entries to General Ledger. If you do not transfer the journals to General Ledger immediately, you can later submit the "Transfer Journal Entries to GL" concurrentprogram.
Attention: Final journal entries cannot be further modified in Cash Management. Please make sure you are satisfied with the draft journal entries before creating final accounting. In addition to creating final accounting entries, the program can be run in a draft mode, in which case draft journal entries will be created. Such journals cannot be transferred or posted to General Ledger.
13. Run the GL Reconciliation Report
Use this report to reconcile the General Ledger cash account to a bank statement balance.
This report lists a balance and an adjusted balance for the bank statement. It also lists a separate adjustment amount for un-reconciled receipts, payments, and journal entries, as well as bank errors.
Warning: To ensure that this report is accurate, you must first perform these tasks:
* Reconcile all statements in Cash Management.
* Transfer journal entry transactions from Oracle Payables and Oracle Receivables to your General Ledger.
* Post journals in General Ledger, if transfer from sub-ledgers was not in FINAL POST mode.
14. Run the Account Analysis Report for the General Ledger Cash Account
Run the Account Analysis Report from General Ledger for the General Ledger Cash Account Flexfield and sort by Source.
15. Review the Account Analysis Report
Review the Account Analysis Report to ensure that only bank account related transactions have been posted to the General Ledger Cash Account by checking the Source of the transactions. Valid sources will include Payables and Receivables. Transactions entered directly via General Ledger will have a Source of Manual or
possibly Spreadsheet if Web Applications Desktop Integrator (Web ADI) is used.
16. Correct any Invalid Entries to the General Ledger Cash Account (Optional)
Reverse or amend any journals incorrectly posted to the General Ledger Cash Account, which were highlighted during the review of the Account Analysis Report. To prevent invalid journal entries to the General Ledger Cash Account enable security rules appropriately.
Oracle Cash Management is an enterprise cash management solution that helps you effectively manage and control the cash cycle. It provides comprehensive bank reconciliation, bank, bank branches & internal bank accounts setup, intra-bank account transfers, cash pooling and flexible cash forecasting. The Bank Reconciliation process enables the verification of entries on the Bank Statement by reconciling that information with system transactions in Oracle Payables, Oracle Receivables and Oracle General Ledger.
During the Bank Reconciliation process miscellaneous transactions can be created for bank-originated entries, such as bank charges and interest. Cash forecasting is a planning tool that helps anticipate the flow of cash in and out of the enterprise, allowing the projection of cash needs and evaluation of the company's
liquidity position.
Procedures
The following steps are taken in performing period-end processing for Oracle Cash Management.
1. Complete Daily Cash Management Activities
Complete bank account transfers for the day, validate them, if necessary, and send payment instructions to the bank.
2. Load Bank Statements
Detailed information from each bank statement, including bank account information, deposits received by the bank, and checks cleared needs to be entered into Cash Management. Bank statements can be either manually entered or loaded electronically from information received directly from your bank. For organizations with high transaction volumes bank statements should be loaded and reconciled on a daily basis.
3. Generate Sweep Transactions
If you have target balance or zero balance accounts (ZBA) with your banks, you can automatically generate system transactions to match banking information once the bank posts the sweeps. Once the bank statements are imported, run the Sweep Transaction Generation concurrent program. The program will scan the bank statement for sweep lines and, based on the cash pool setup in the system, create sweep transactions between your internal bank accounts, which can be accounted for and subsequently reconciled.
4. Create Bank Statement Cashflows
If you have recurring items such as bank fees and interest appear on your bank statement, you can use the Bank Statement Cashflow Creation program to create system transactions (cash flows) to match banking information . Once the bank statements are imported, run the Bank Statement Creation concurrent program. This program will scan the bank statement for specific codes, as defined in the Bank Statement Cashflow Mapping, and create cashflows, which can be accounted for and subsequently reconciled.
5. Reconcile Bank Statements
Once detailed bank statement information has been entered into Cash Management, the information must be reconciled with the subledger transactions. Cash Management provides two methods to undertake reconciliations:
a) Automatic
Bank statement details are automatically matched and reconciled with subledger transactions. This method is ideally suited for bank accounts which have a high volume of transactions.
b) Manual
This method requires a manual match of bank statement details with subledger transactions. This method is ideally suited to reconciling bank accounts which have a small volume of monthly transactions. The manual reconciliation method can also be used to reconcile any bank statement details, which could not be reconciled automatically.
6. Create Miscellaneous Transactions
During the reconciliation process, miscellaneous transactions for bank-originated entries, such as bank charges and errors can be created. Oracle Payables payments or Oracle Receivables receipts can also be manually created.
Note: The automatic reconciliation process can be set up to create miscellaneous transactions automatically.
Attention: If you create transactions during the reconciliation process, you will need to re-run the ‘Create Accounting’ routine from Oracle Receivables to ensure all information is transferred to the General Ledger.
6a.Complete Bank Transfers
Complete the bank account transfer whether it is manual or automatic and record the validation if required before completing the transfer.
7. Review Auto-Reconciliation Execution Report
Once the reconciliation process has been completed, reviewing the reconciliation results is recommended.
This report shows import and reconciliation errors that occurred when running the Auto-Reconciliation program. Cash Management automatically produces this report during the automatic reconciliation process. You may also request it as needed from the Submit Request window. This report includes either statement import errors, which prevented the automatic loading of your bank statement, or your reconciliation exceptions found during the automatic reconciliation process. This report lists the details of any miscellaneous transactions that were created in Receivables during the automatic reconciliation process.
8. Resolve Exceptions on the Auto-Reconciliation Execution Report
Resolve the exceptions on the Auto-Reconciliation Execution report by either rerunning the import process or by manually reconciling the exceptions.
9. Run Bank Statement Detail Report
This report shows statement and transaction information for a specific bank account statement, including bank statement header information, statement line detail, and reconciled transaction detail. This report lists any un-reconciled transactions separately with their current status, and the statement totals for each type of transaction, including the amount entered, reconciled, un-reconciled, over-reconciled and under-reconciled, and gives you the option to select only un-reconciled statement lines.
10. Run Transactions Available for Reconciliation Report
This report shows all transactions available for reconciliation for a specific bank account. It lists detailed transaction information for your Available Receipts, Available Payment, and Available Journal Entries for reconciliation. Detailed information includes the Customer, Supplier or Batch Name, Transaction Date,
Payment Method, Transaction Number, Currency, and Amount. This report only lists void payments if the Show Void Payments option on the Systems Parameters window is checked. It does not list reversed receipts due to user error nor does it list the associated original receipts that were not reconciled. This
report groups transactions by status so that void or reversed transactions are separate from other transactions.
11. Resolve Un-reconciled Statement Lines
Resolve the un-reconciled statement lines by manually reconciling the statement lines to the available transactions.
12. Post to General Ledger
Create journal entries for eligible accounting events generated by Bank Account Transfers and Bank Statement Cash Flows by submitting "Create Accounting" concurrent program. The program creates and optionally transfers and posts journal entries to General Ledger. If you do not transfer the journals to General Ledger immediately, you can later submit the "Transfer Journal Entries to GL" concurrentprogram.
Attention: Final journal entries cannot be further modified in Cash Management. Please make sure you are satisfied with the draft journal entries before creating final accounting. In addition to creating final accounting entries, the program can be run in a draft mode, in which case draft journal entries will be created. Such journals cannot be transferred or posted to General Ledger.
13. Run the GL Reconciliation Report
Use this report to reconcile the General Ledger cash account to a bank statement balance.
This report lists a balance and an adjusted balance for the bank statement. It also lists a separate adjustment amount for un-reconciled receipts, payments, and journal entries, as well as bank errors.
Warning: To ensure that this report is accurate, you must first perform these tasks:
* Reconcile all statements in Cash Management.
* Transfer journal entry transactions from Oracle Payables and Oracle Receivables to your General Ledger.
* Post journals in General Ledger, if transfer from sub-ledgers was not in FINAL POST mode.
14. Run the Account Analysis Report for the General Ledger Cash Account
Run the Account Analysis Report from General Ledger for the General Ledger Cash Account Flexfield and sort by Source.
15. Review the Account Analysis Report
Review the Account Analysis Report to ensure that only bank account related transactions have been posted to the General Ledger Cash Account by checking the Source of the transactions. Valid sources will include Payables and Receivables. Transactions entered directly via General Ledger will have a Source of Manual or
possibly Spreadsheet if Web Applications Desktop Integrator (Web ADI) is used.
16. Correct any Invalid Entries to the General Ledger Cash Account (Optional)
Reverse or amend any journals incorrectly posted to the General Ledger Cash Account, which were highlighted during the review of the Account Analysis Report. To prevent invalid journal entries to the General Ledger Cash Account enable security rules appropriately.
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