Cash Management
Introduction
1. Oracle Cash Management is an enterprise wide
solution for managing liquidity and controlling cash.
2. Cash Management gives you direct access to
expected cash flows from your operational systems.
3. You can quickly analyze enterprise wide cash management
cash requirements and currency exposures, ensuring liquidity and optimal use of
cash resources.
Benefits of Cash
Management
ü Forecast cash flows in any currency and in
multiple time periods
ü streamline the reconciliation process
ü Monitor for exceptions and fraud
ü Forecast based on historical or future
transactions
ü Manage the cash cycle efficiently and with
control
Cash Management
Integration
v Cash Management is integrated with Payables,
Receivables and General Ledger.
v Payables: Payments information automatically
transfers to CM without any process.
v Receivables: to transfer Receipts information
to CM remittance process is required.
v From AR only remitted eligibility transactions
will transfer to CM.
v GL: If we have entered any journal in GL with
cash account, that data will flow to CM.
Cash Management is
used mainly for 2 purposes
1. Reconciliation
2. Forecasting
Forecasting is used to
identify the future cash inflows and outflows of an Organization.
Reconciliation:
o Normally at the end of every period, the
entries in the cash book are compared with entries in the pass book.
o The exact causes of differences are
scrutinized and then bank reconciliation statement is prepared.
o Necessary suitable entries will passed in the
cash book.
Reconciliation process
is 3 types:
1. Manual Clearing Process
2. Manual Reconciliation
3. Automatic Reconciliation
Manual Clearing
Process:
In this process we
will manually clear the transactions without entering the bank statement into
Oracle.
Manual Reconciliation:
In this process we
will manually enter the bank statement into Oracle. We will take the
transactions one by one and search for the bank transactions manually and mark
the transactions as reconciled.
Automatic
Reconciliation Process
Automatic
Reconciliation process can be done in 2 ways:
We will enter bank
statement into Oracle and run a program, so that system will search the
transactions and will reconcile automatically.
In another way, in the
case where bank statement transactions are more and not possible to enter
manually into oracle, in that case, we will upload the bank statement into
Oracle through specific formats:
BAI 2& SWIFT 940
These formats are used
to upload bank statements into Oracle.
Once we received bank
statements in the above formats from the bank, we will place these files in a
directory where cash management application is stored.
We have to run “Bank statement load” program.
We have to define Bank codes for transaction identification
purpose.
CASH MANAGEMENT
REPORTS
1.
AUTO RECONSILIATION
2.
BANK STATEMENT DETAIL REPORT
3.
BANK STATEMENT IMPORT EXECUTION REPORT
4.
BANK STATEMENT SUMMARY REPORT
5.
BATCHES AVAILABLE FOR RECONSILIATION
6.
CASH FORECAST REPORT
7.
CASH IN TRANSIT REPORT
8.
CLEARED THE TRANSACTION REPORT
9.
GL RECONSILIATION REPORT
10.
TRANSACTION AVAILABLE FOR RECONSILATION REPORT
11.
UNRECONSILED BANK STATEMENT
Cash Management period
closing procedures
Ensure the
following before closing the Payables & Receivables.
Ø Any reconciliation transactions created by
Cash Management are properly entered.
Ø Account balances are updated.
Ø Reports include accurate information.
Specifically the
following steps are recommended.
1.
Reconcile all your bank statements.
2.
Transfer all transactions from Payables to your General Ledger interface
tables.
3.
Run Journal Import in General Ledger.
4.
Post journals in General Ledger.
5.
Run the GL Reconciliation Report from Cash Management for each bank account.
This report compares the statement balance you specify to the General Ledger
ending balances.
6.
Review the report for errors.
7. If there are errors in
the report, correct them in Cash Management, as needed. Repeat the above steps
until there are no more errors.
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