Oracle Cash Management module helps you to streamline the reconciliation process and manage the cash cycle effectively.
Below are the basic functionalities and the setups to start with Cash Management module.
Step 1. Create Cash Management Responsibility
Responsibility: System Administrator
Navigation: Security > Responsibility > Define
Exclude Menus/Functions which are not required.
Step 2: Define Profile Option Values for Cash Management responsibility
Navigation: System Administrator > Profile > System
1. MO: Operating Unit
2. MO: Security Profile
3. GL Ledger Name
4. GL: Data Access Set
5. SLA: Additional Data Access Set
Step 3: Assign Cash Management Responsibility to Users
Security > User > Define
Query the user and assign Cash Management responsibility created in Step 1.
Step 4: Assign Legal Entity to the Cash Management Responsibility
Assigning the Legal Entity to Cash Management responsibility gives the access to legal entity for cash management setups.
This is very important setup and with out this setup, you can not access the legal entity details to setup CM system parameters.
Responsibility: User Management
Navigation: Roles & Role Inheritance
Click on Run Wizard icon for CE UMX Security wizard. Add the Legal Entity ‘XX India Private Limited’ and select Use, Bank Account Grants Maintenance and Bank Account Transfers check boxes.
Step 5: Define Cash Management System Parameters
Setup the System Parameters to configure your Cash Management system according to your business requirements.
Navigation: Cash Management Superuser > Setup > System > System Parameters
Legal Entity: The Legal Entity name.
Ledger: The ledger name for Cash Management accounting transactions. If there are multiple ledgers assigned to your Legal Entity, System Parameters should be setup for each ledger.
Begin Date: Cash Management shows payment, receipts, journals, and open interface transactions details from the Begin Date.
Show Cleared Transactions: If you check this check box, cleared transactions will be available for reconciliation along with uncleared transactions.
Add Lines to Automatic Statements: If you check this check box, users can add lines to existing automatically loaded bank statements.
Archive/Purge: Use the Archive and Purge check boxes to allow Autoreconciliation program to automatically purge/archive the data from Bank Statement Interface tables once the information has been successfully transferred to the bank statement tables.
Exchange Rate Type: Cash Flows and Bank Account Transfer transactions use the exchange rate specified here.
Bank Statement Cash flow Rate Date: The cash flow program uses the date specified here to get the exchange rate details.
Bank Transfer Rate Date: The Bank Account Transfers use the date specified here to get the exchange rate details.
Bank Account Transfers Authorization: Specify whether the authorization is required to settle bank account transfers.
Step 6: Define Bank Transaction Codes
Define the bank transaction codes that your bank uses to identify different types of transactions on its statements. Bank Statement Loading will fail if the bank transaction codes are not defined in the system which are there in the bank statement files.
Cash Management Superuser > Setup > Banks > Bank Transaction Codes
Step 7: Define Bank Statement Mappings
Bank Statement Loader program uses this Bank Statement mappings template to map the Bank statement fields. For Example, the first lines in below image means, the 5th position on second records represents the Statement number.
Cash Management Superuser > Setup > Banks > Bank Statement Mappings
Step 8: Define Cash Flow Mappings
Cash Management module provide the feature of Cashflows to generate the cash flow transactions and generate the Journal entries in the system.
This feature is mainly used when there is no payment/receipt/journal to reconcile against a bank statement line. Instead of creating a manual journal entry, you can use this feature to create cashflow transactions you can reconcile with bank statement lines and subsequently the journal entries get created.
Cash Management Superuser > Setup > Banks > Bank Statement Cashflow Mappings
As a prerequisite, there should be transaction codes exist in the system, for which the GL accounts are assigned in cash flow mappings. The journal entries will get created by using this account.
Once the transaction codes and cashflow mappings present in the system, users need to run Bank Statement Cashflow creation program to generate the cash flows for a particular bank account for which the statement lines exist with Cash Flow transaction codes.
Step 9: Setup Autoreconciliation Tolerances
Query Bank Account name and select Update Account option. Navigate to Account Controls.
Under Auto Reconciliation Tolerances > Payments section, Setup Tolerance amount, Tolerance Percentage, Foreign Tolerance Differences and Tolerance Differences.
Step 10: Setup Cash Clearing Account
Cash Management Superuser > Setup > Bank Accounts
Query Bank Account name and select Update Account option. Navigate to Account Access > Options.
Step 11: Setup Entered Currency Balancing Account
Query the Ledger. Click on Update Accounting options.
Below are the basic functionalities and the setups to start with Cash Management module.
Step 1. Create Cash Management Responsibility
Responsibility: System Administrator
Navigation: Security > Responsibility > Define
Step 2: Define Profile Option Values for Cash Management responsibility
Navigation: System Administrator > Profile > System
1. MO: Operating Unit
2. MO: Security Profile
3. GL Ledger Name
4. GL: Data Access Set
5. SLA: Additional Data Access Set
Step 3: Assign Cash Management Responsibility to Users
Security > User > Define
Query the user and assign Cash Management responsibility created in Step 1.
Step 4: Assign Legal Entity to the Cash Management Responsibility
Assigning the Legal Entity to Cash Management responsibility gives the access to legal entity for cash management setups.
This is very important setup and with out this setup, you can not access the legal entity details to setup CM system parameters.
Responsibility: User Management
Navigation: Roles & Role Inheritance
Search the page with below values:
Type: Roles & Responsibilities
Category: Miscellaneous
Name: Cash Management Super User (The CM responsibility Name)
Application: Cash Management
Click on Update icon against Cash Management Super User responsibility.
Click on Security Wizards.
Click on Run Wizard icon for CE UMX Security wizard. Add the Legal Entity ‘XX India Private Limited’ and select Use, Bank Account Grants Maintenance and Bank Account Transfers check boxes.
Click on Apply to save the changes.
Step 5: Define Cash Management System Parameters
Setup the System Parameters to configure your Cash Management system according to your business requirements.
Navigation: Cash Management Superuser > Setup > System > System Parameters
Ledger: The ledger name for Cash Management accounting transactions. If there are multiple ledgers assigned to your Legal Entity, System Parameters should be setup for each ledger.
Begin Date: Cash Management shows payment, receipts, journals, and open interface transactions details from the Begin Date.
Show Cleared Transactions: If you check this check box, cleared transactions will be available for reconciliation along with uncleared transactions.
Add Lines to Automatic Statements: If you check this check box, users can add lines to existing automatically loaded bank statements.
Archive/Purge: Use the Archive and Purge check boxes to allow Autoreconciliation program to automatically purge/archive the data from Bank Statement Interface tables once the information has been successfully transferred to the bank statement tables.
Exchange Rate Type: Cash Flows and Bank Account Transfer transactions use the exchange rate specified here.
Bank Statement Cash flow Rate Date: The cash flow program uses the date specified here to get the exchange rate details.
Bank Transfer Rate Date: The Bank Account Transfers use the date specified here to get the exchange rate details.
Bank Account Transfers Authorization: Specify whether the authorization is required to settle bank account transfers.
Step 6: Define Bank Transaction Codes
Define the bank transaction codes that your bank uses to identify different types of transactions on its statements. Bank Statement Loading will fail if the bank transaction codes are not defined in the system which are there in the bank statement files.
Cash Management Superuser > Setup > Banks > Bank Transaction Codes
Step 7: Define Bank Statement Mappings
Bank Statement Loader program uses this Bank Statement mappings template to map the Bank statement fields. For Example, the first lines in below image means, the 5th position on second records represents the Statement number.
Cash Management Superuser > Setup > Banks > Bank Statement Mappings
Step 8: Define Cash Flow Mappings
Cash Management module provide the feature of Cashflows to generate the cash flow transactions and generate the Journal entries in the system.
This feature is mainly used when there is no payment/receipt/journal to reconcile against a bank statement line. Instead of creating a manual journal entry, you can use this feature to create cashflow transactions you can reconcile with bank statement lines and subsequently the journal entries get created.
Cash Management Superuser > Setup > Banks > Bank Statement Cashflow Mappings
As a prerequisite, there should be transaction codes exist in the system, for which the GL accounts are assigned in cash flow mappings. The journal entries will get created by using this account.
Once the transaction codes and cashflow mappings present in the system, users need to run Bank Statement Cashflow creation program to generate the cash flows for a particular bank account for which the statement lines exist with Cash Flow transaction codes.
Step 9: Setup Autoreconciliation Tolerances
Cash Management Superuser > Setup > Bank Accounts
Query Bank Account name and select Update Account option. Navigate to Account Controls.
Step 10: Setup Cash Clearing Account
Cash Management Superuser > Setup > Bank Accounts
Query Bank Account name and select Update Account option. Navigate to Account Access > Options.
Step 11: Setup Entered Currency Balancing Account
The Entered Currency Balancing Account is used by Subledger Accounting to balance foreign currency subledger journals by the entered currency and balancing segment value. Without this account defined, system can not derive the CCID for foreign currency transactions.
Navigation: General Ledger Super User > Setup > Financials >Accounting Setup Manager > Accounting Setups
Query the Ledger. Click on Update Accounting options.
Click on Update Ledger Options. Under Subledger Accounting section, add Entered Currency Balancing Account.
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