Bank Account Transfer in Cash Management - Release 12 Version 1.0
www.ivruksha.com Page 1
Oracle Financials - Release 12
Cash Management Module
Bank Account Transfer
Version 1.0
Date August 2013 Author Ivruksha
Bank Account Transfer in Cash Management - Release 12 Version 1.0
www.ivruksha.com Page 2
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 ivruksha@gmail.com
Regards, Ivruksha
Bank Account Transfer in Cash Management - Release 12 Version 1.0
www.ivruksha.com Page 3
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
Bank Account Transfer in Cash Management - Release 12 Version 1.0
www.ivruksha.com Page 4
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
Bank Account Transfer in Cash Management - Release 12 Version 1.0
www.ivruksha.com Page 5
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)
Bank Account Transfer in Cash Management - Release 12 Version 1.0
www.ivruksha.com Page 6
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 Accountsrefer 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
Bank Account Transfer in Cash Management - Release 12 Version 1.0
www.ivruksha.com Page 7
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 non-availability, 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.
Bank Account Transfer in Cash Management - Release 12 Version 1.0
www.ivruksha.com Page 8
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
Bank Account Transfer in Cash Management - Release 12 Version 1.0
www.ivruksha.com Page 9
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 EXPLANATION
New This is the very first and default status for every Bank Account transfer. Until a BAT is validated, it would stay in New Status. Validated When Authorization is required for BAT, Validating the BAT would change the status from New to Validated. Settlement In
Process
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.
Settled
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.
Canceled BAT has been canceled
Invalid 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.
Rejected When the Authorization of BAT is rejected.
Failed 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.
Bank Account Transfer in Cash Management - Release 12 Version 1.0
www.ivruksha.com Page 10
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
self-explanatory. 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.
Bank Account Transfer in Cash Management - Release 12 Version 1.0
www.ivruksha.com Page 11
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
Bank Account Transfer in Cash Management - Release 12 Version 1.0
www.ivruksha.com Page 12
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
Bank Account Transfer in Cash Management - Release 12 Version 1.0
www.ivruksha.com Page 13
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
Ledger Currency Source Bank Currency Destination Ledger Currency Destination Bank Currency
Transaction
Currency Result
USD USD NA (Transfer
within Ledger) USD USD Allowed
USD USD NA (Transfer
within Ledger) USD INR Not Allowed
USD USD NA (Transfer
within Ledger) GBP USD Not Allowed
USD GBP NA (Transfer
within Ledger) AED USD Not Allowed
USD USD NA (Transfer
within Ledger) GBP GBP Allowed
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
Bank Account Transfer in Cash Management - Release 12 Version 1.0
www.ivruksha.com Page 14
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)
Bank Account Transfer in Cash Management - Release 12 Version 1.0
www.ivruksha.com Page 15
5) Setup Intercompany Accounts for your Ledger and Legal Entities 6) Configure Cash Management Module for the Legal Entity
7) Grant Legal entity access to Cash Management using User Management Security. 8) 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 Inter-Account 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
Bank Account Transfer in Cash Management - Release 12 Version 1.0
www.ivruksha.com Page 16
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
Bank Account Transfer in Cash Management - Release 12 Version 1.0
www.ivruksha.com Page 17
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.
Bank Account Transfer in Cash Management - Release 12 Version 1.0
www.ivruksha.com Page 18
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
Bank Account Transfer in Cash Management - Release 12 Version 1.0
www.ivruksha.com Page 19
Characteristics of the Fields involved in creating a Bank Account Transfer transaction
S No Field Name Field Type Seeded or User Defined Values available for the field Mandatory or Optional
1 Settle Transactions through Oracle
Payments Drop Down Box Seeded Values Only
1) Yes
2) No Mandatory
2 Transaction Subtype List of Values User Defined Values Only All values setup under the Transaction Subtype (Navigation:
Setup > System > Transaction Subtype) Optional 3 Payment Template List of Values User Defined Values Only All values setup under the Payment Template (Navigation:
Setup > System > Payment Template) Optional 4 Status Not Updateable,
View only Seeded Values Only New, Validated, Settled, Settlement in Progress, canceled, Invalid, Rejected and Failed Mandatory 5 Transfer Date List of Values Seeded Values Only Calendar Days in DD-MON-YYYY format Mandatory 6 Currency List of Values Seeded Values and User
Defined Values All currencies defined and enabled Mandatory 7 Transfer Amount Free Text Field Free Text Field Free Text Field Mandatory 8 Comments Free Text Field Free Text Field Free Text Field Optional 9 Bank Account
Number List of Values User Defined Values Only All values setup under the bank accounts (Navigation: Setup > Payment > Bank Accounts) Mandatory 10 Bank Account Name Not Updateable,
View only User Defined Values Only All values setup under the bank accounts (Navigation: Setup > Payment > Bank Accounts) Mandatory 11 Branch Name Not Updateable,
View only User Defined Values Only All values setup under the bank accounts (Navigation: Setup > Payment > Banks and Bank Branches) Mandatory 12 Bank Name Not Updateable,
View only User Defined Values Only All values setup under the banks (Navigation: Setup > Payment > Banks and Bank Branches) Mandatory 13 Legal Entity Not Updateable,
View only User Defined Values Only Legal Entities linked with the above Bank Account (Navigation: Setup > Payment > Bank Accounts) Mandatory 14 Payment Method List of Values Seeded Values and User
Defined Values All values setup as Payment Method (Navigation: Setup > Payment > Payment Methods) Optional when Settlement is not done through Payments 15 Payment Reason List of Values Seeded Values and User
Defined Values All values setup as Payment Reason Codes (Navigation: Setup > Payment > Payment Administrator) Optional 16 Payment Reason
Bank Account Transfer in Cash Management - Release 12 Version 1.0
www.ivruksha.com Page 20
17 Anticipated Value
Date List of Values Seeded Values Only Calendar Days in DD-MON-YYYY format Optional
18 Bank Charge Bearer Drop Down Box Optional
19 Remittance Message 1 Free Text Field Free Text Field Free Text Field Optional 20 Remittance Message 2 Free Text Field Free Text Field Free Text Field Optional 21 Remittance Message 3 Free Text Field Free Text Field Free Text Field Optional
22 Context Value Descriptive Flexfield Depends on
Bank Account Transfer in Cash Management - Release 12 Version 1.0
www.ivruksha.com Page 21
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 Field Name Field Type Seeded or User Defined Values available for the field or Optional Mandatory
1 Template Code Free Test Field User Defined Values Only Free Test Field Mandatory 2 Repetitive Code Drop Down Box Seeded Values Only Yes , No Mandatory 3 Authorize Transaction Drop Down Box Seeded Values Only Null, Yes , No Optional 4 Settle Transaction Drop Down Box Seeded Values Only Null, Yes , No Optional 5 Description Free Test Field User Defined Values Only Free Test Field Optional
Bank Account Transfer in Cash Management - Release 12 Version 1.0
www.ivruksha.com Page 22
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 Field Name Field Type Seeded or User Defined Values available for the field Mandatory or Optional
1 Subtype Name Free Text Field User Defined Values Only Free Text Field Mandatory 2 Short Name Free Text Field User Defined Values Only Free Text Field Optional 3 Subtype Parent
Name List of Values User Defined Values Only All values setup under the Transaction Subtype earlier Optional 4 Description Free Text Field User Defined Values Only Free Text Field Optional
Bank Account Transfer in Cash Management - Release 12 Version 1.0
www.ivruksha.com Page 23
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 Field Name Field Type Seeded or User Defined Values available for the field Mandatory or Optional
1 Exchange Rate Type Drop down box Seeded and User Defined Values Free Text Field Mandatory 2 Bank Transfer
Rate Date
Drop down box Seeded Values Only
The dates available are:
Actual Value Date, Bank Statement Date, Cash Flow Date, Cleared Date, GL Date, Statement Line Date and Transfer Date
Mandatory
3 Authorization Drop down box Seeded Values Only The values available are required
and not required Mandatory
Bank Account Transfer in Cash Management - Release 12 Version 1.0
www.ivruksha.com Page 24
Table Names involved in Bank Account Transfer
Tables in Cash ManagementCE_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_CASHFLOWS
Bank Account Transfer in Cash Management - Release 12 Version 1.0
www.ivruksha.com Page 25
CE_CASHFLOW_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
Bank Account Transfer in Cash Management - Release 12 Version 1.0
www.ivruksha.com Page 26
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. FUN_BALANCE_ACCOUNTS
Bank Account Transfer in Cash Management - Release 12 Version 1.0
www.ivruksha.com Page 27
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) Diagnostics output of Apps Check OR Diagnostics output of RDA 2) Diagnostics output of BAT and Cashflow Data
3) Screen Shot of the Error Message
4) Screen Shots of the steps performed to arrive at the Error Message 5) Detailed description of the error message
Bank Account Transfer in Cash Management - Release 12 Version 1.0
www.ivruksha.com Page 28
References from Oracle Documentation related to Bank Account
Transfer feature that I am unable to understand!
Refer
Document Reference - R12 White Paper on Bank Account Transfer for Oracle Cash Management (Doc ID 1276861.1)
ence 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!
Refer
Document Reference - Bank Transfer Between Two Non Functional Currency Bank Account (Doc ID 782819.1) and User Guide.
ence 2
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
Bank Account Transfer in Cash Management - Release 12 Version 1.0
www.ivruksha.com Page 29
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)
Refer
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”.
ence 3
What does oracle mean by “Code provided by Bank”? I am not sure about its relevance, still researching on it.
Bank Account Transfer in Cash Management - Release 12 Version 1.0
www.ivruksha.com Page 30
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?
Bank Account Transfer in Cash Management - Release 12 Version 1.0
www.ivruksha.com Page 31
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 …
Bank Account Transfer in Cash Management - Release 12 Version 1.0
www.ivruksha.com Page 32
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.
Bank Account Transfer in Cash Management - Release 12 Version 1.0
www.ivruksha.com Page 33
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?
Bank Account Transfer in Cash Management - Release 12 Version 1.0
www.ivruksha.com Page 34
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
Bank Account Transfer in Cash Management - Release 12 Version 1.0
www.ivruksha.com Page 35
at the amounts in functional currency.
Are there any Configurations 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.
