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  • Cash Management Reconciliations: Foreign Currencies, AP, GL, and Bank Statements</TITLE

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    Cash management includes clearing uncleared transactions, reconciling payments and receipts, entering bank statements manually or automatically, preparing cash forecasts, and handling multi-currency bank statements and reconciliations. It treats payments as cash outflows and stopped payments as cash inflows. Setting it up involves creating bank transaction codes for accounts payable, general ledger, and receipts/payments with matching criteria. Reconciling accounts payable to cash equivalents involves assigning payments to banks, defining suppliers, creating invoices and payments, entering bank statements, and reconciling manually or automatically, including reconciling stopped payment lines with voided payments.

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    cash management

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    Foreign Currency Banks Reconciliations

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    Cash management includes clearing uncleared transactions, reconciling payments and receipts, entering bank statements manually or automatically, preparing cash forecasts, and handling multi-currency bank statements and reconciliations. It treats payments as cash outflows and stopped payments as cash inflows. Setting it up involves creating bank transaction codes for accounts payable, general ledger, and receipts/payments with matching criteria. Reconciling accounts payable to cash equivalents involves assigning payments to banks, defining suppliers, creating invoices and payments, entering bank statements, and reconciling manually or automatically, including reconciling stopped payment lines with voided payments.

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    Attribution Non-Commercial (BY-NC)
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    29 views6 pages

    Cash Management Reconciliations: Foreign Currencies, AP, GL, and Bank Statements</TITLE

    Uploaded by

    prairna
    Cash management includes clearing uncleared transactions, reconciling payments and receipts, entering bank statements manually or automatically, preparing cash forecasts, and handling multi-currency bank statements and reconciliations. It treats payments as cash outflows and stopped payments as cash inflows. Setting it up involves creating bank transaction codes for accounts payable, general ledger, and receipts/payments with matching criteria. Reconciling accounts payable to cash equivalents involves assigning payments to banks, defining suppliers, creating invoices and payments, entering bank statements, and reconciling manually or automatically, including reconciling stopped payment lines with voided payments.

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    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 6

    Cash Management includes: a) Clearing manually or automatically your uncleared transactions lying in Accounts Receivables, Accounts payables, Oracle

    Payroll & General Ledger modules. b) It helps the user to reconcile manually or automatically the payments and receipts and then review and correct the unreconciled transactions. c) Enter Bank Statements manually or automatically by importing from Open Interface tables. d) Prepare Cash forecast. e) Cash management also handles Multi Currency Bank Statements and its reconcilation.

    Foreign Currency Banks Reconciliations Foreign Currency Transactions

    Receipt is in Foreign Currency / Bank is Functional Currency In this case the tolerance amount will be the difference in Converted Amount of Receipt and Statement amount.

    Both Receipt and Bank is in foreign Currency In this case the Tolerance amount will first be converted into foreign currency using Rate type and Rate date as specified in System Parameters form.

    Note : Rest will remain same as covered till now.

    Set ups for Reconciliation with Oracle General Ledger and Oracle Payables

    i. Create a Bank Transaction Code for AP and Gl Source Create a Receipt or Payment Type in Bank transaction code screen with Source as Journals Matching Criteria 1 CCID of Bank Account in Journal Line must be same as Cash Account in the Bank Definition 2 Journal Line must be Posted 3 Description field and the Number Field is the Matching Criteria used

    Reconciliation of AP to CE

    Steps 1 Assign a Payables Document to the bank 2 Define one Supplier 3 Create one Invoice and make payment in full 4 Create Bank Transaction Code with Source as Payables 5 Enter one Bank statement line of Type Payment in Bank Statement. 6 Either Manually Reconcile or Auto 7 For any Stopped Payment line in Bank Statement define bank transaction code for Stopped as type and source payables and then use this code in statement line.

    Description Figure 10 Shows Payment created in AP. Navigation Payables- Payments-Payment

    Description Figure 11 Shows Payment created in AP. Navigation Payables- Payments-Payment

    Cash Management treats Payments as a source of Cash Outflow and Stopped Payments as a source of Cash Inflows. Since the Bank Statement Header has one field for Cash Inflow Sources (Receipts) and one for Outflow sources (Payments), Stopped Payments show up in the Receipts Field. There could be two scenarios, which would affect the Bank Statement Balance: Case 1 The bank records both the original payment and the stopped payment on the same statement. In this case, the two transactions would null out and have no effect on the closing balance. This is the basis for the treatment of stopped payments by the method described above.

    Description Figure 12 Shows Reconciliation of Stopped line with AP void payment Navigation : Cash Management Bank Reconciliations-Bank Statements Case 2 The bank records the original payment and the stopped payment on two different statements or just records the stopped payment and not the original payment. In this case, the closing balance would be impacted.

    Description Figure 13 Shows bank transaction code for Journal as Source . Navigation : Cash Management Set up- Bank transaction Code

    Description Figure 14 Shows the Lines in Cash Management reconciliation with Journals in Oracle General Ledger. Navigation : Cash Management Bank Reconciliations-Bank Statements

    Description Figure 15 Shows the Journal Created in oracle general Ledger with Description field populated . Navigation Oracle General Ledger Journals-Enter

    Conclusions It is our hope that this paper has helped you understand what Cash Management Reconciliations is , and how to set it up.

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