Setting Up Oracle Cash Management

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Setting Up Oracle Cash Management

Objectives

Describe Oracle General Ledger setup for Oracle Cash Management Describe related setup for Payables, Receivables, Payroll, and Treasury Describe Oracle Cash Management setup

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Overview

Set up Oracle Cash Management and related products

General Ledger setup Payables setup Common Payables and Receivables setup Receivables setup
Setting Up Oracle Cash Management

Cash Management system parameters setup Transaction codes setup for each bank account

Before setting up Cash Management, you should set up Oracle Application responsibilities and users for the implementation. You must also set up underlying Oracle Applications Technology. Through Oracle Applications Multiple Organization Support, you can use multiple sets of books for one Cash Management installation and assign a ledger (with its unique calendar, chart of accounts, and functional currency) to each operating unit you define. You can segregate transactions by operating unit while sharing certain data:

Currencies Exchange Rates Organizations Ledgers Bank Accounts

Setting Up Oracle General Ledger

Complete the following setup in Oracle General Ledger: Define your chart of accounts Define your accounting period types and calendar periods Enable currencies that you plan to use Define a ledger Define a transaction calendar
Use the General Ledger Setup section in the Oracle General Ledger Implementation Guide for help in completing the setup steps.

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Setting Up Oracle Payables

Do the following setup for Payables: Choose a primary ledger for Payables Set the Account for Payment options Set the Account for Gain/Loss options Open your Payables accounting periods
Complete the setup steps to enable Oracle Cash Management to integrate with Oracle Payables.

Primary ledger: Select a primary ledger for each responsibility in the Choose Ledger window in Oracle Payables. Account for Payment options:

When Payment is Issued If you use a cash clearing account, select this option to create accounting entries for bank charges, errors, and gains/losses. If you do not enable this option, you can still reconcile payments in Cash Management, but you cannot create reconciliation accounting entries. When Payment Clears - You must select this option.

Account for Gain/Loss options: Set this option to account for gain or loss between the estimated functional currency payment amount and the actual functional currency payment amount.

When Payment is Issued When Payment Clears Set automatically when you select Account for Payment When Payment Clears option.

Payables accounting periods: see Controlling the Status of Payables Periods. Use the Payables Setup section in the Oracle Payables Implementation Guide for help in completing the setup steps.

Setting Up Oracle Receivables

Set up the following: Select a ledger for each responsibility. Define a receipt class for miscellaneous transactions. Define receivable activities for miscellaneous transactions. Define receipt sources.
To define receivable activities and payment methods for miscellaneous transactions:

In Receivables Activities window, enter the values for asset tax code and liability tax code, if required. Set the AR: Allow Tax Code Override profile option to control whether you can override the default for the Tax Code field.

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Perform any additional setup required to handle miscellaneous receipts, including defining receipt sources and distribution sets. Optionally, set up sequential numbering.

Use the Setting Up Oracle Receivables section in the Oracle Receivables Implementation Guide for help in completing the setup steps.

Setting Up Oracle Payroll

Define an organization Assign the business group to the HR security profile Create payment methods Specify cash account and ledger Set up bank transaction codes

Perform these setup steps before implementing Oracle Cash Management..

Define an organization and classify it as a business group, legal entity, HR organization, and operating unit. Assign the business group to the HR: Security profile option for your Payroll responsibility. Do this only if the assignment has not already been made in the initial setup. In Cash Management, be sure to select Payroll Use for correct business groups when defining bank accounts to be used for payroll reconciliation. Create payment methods. Specify a cash account and a ledger in order to use the Journal Entry Line reconciliation feature from your payroll bank accounts in Cash Management. The ledger you specify must be the same ledger you assign to the GL Ledger Name profile option. In Cash Management, set up the Payments and Stopped Payments bank transaction codes for the bank account. Use the Setting Up Oracle Payroll for Oracle Cash Management Integration section in the Oracle Cash Management User Guide for help in completing the setup steps.

Setting Up Oracle Treasury

Define legal entities for your companies. Define your company information. Assign companies to your users. Define your counterparties and link to the bank branches defined in Cash Management. Define bank accounts for Treasury use in Cash Management.
Use the Setting Up Oracle Treasury for Oracle Cash Management Integration section in the Oracle Cash Management User Guide for help in completing the setup steps.

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Setting Up Oracle Cash Management: System Parameters

Use the System Parameters window to configure your Oracle Cash Management system. Basic: Legal Entity, Ledger, Begin Date System: Reconciliation Controls and Signing Authority Approval Cash Management Transactions
Accounting Bank Account Transfers

(N) Setup: System > System Parameters Use the System Parameters window to configure your Cash Management system to meet your business needs. System parameters determine, for example, the default options for manual reconciliation windows, and the control settings for the AutoReconciliation program. Basic System Parameters

Legal Entity: The name of the legal entity that the system parameters are applied to. Ledger: The name of the ledger for Cash Management accounting transactions. This value defaults from the GL Ledger Name profile option. Cash Management supports multiple ledgers. Each legal entity is tied to a ledger. If you deal with multiple legal entities,t hen you must set up system parameters for each legal entity. Begin Date: Cash Management will not display transactions dated earlier than this date.

Reconciliation Controls Show Cleared Transactions: If you check this check box, cleared transactions remain available for reconciliation. Otherwise, only uncleared transactions will appear for reconciliation. Allow Adding Lines to Imported Statements Show Void Payments: You must check this check box if you want voided payments available for reconciliation.

Signing Authority Approval

Workflow Enabled Manually Controlled

Cash Management Transactions Accounting: Exchange Rate Type, Bank Statement Cashflow Rate Date, Bank Transfer Rate Date Bank Account Transfers: Authorization

Note: Set up bank reconciliation controls such as matching order and float status for each bank account when you create or update a bank account.

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Setting up Oracle Cash Management: Bank Transaction Codes

For each bank account, define the transaction codes that each bank uses to identify different transaction types on its statements. Define a bank transaction code for each code that you expect to receive from each bank that you use.
Defining Bank Transaction Codes If you want to load electronic bank statements or use Cash Management's AutoReconciliation feature, you must define, for each bank account, the transaction codes that each bank uses to identify different types of transactions on its statements. Because each bank might use a different set of transaction codes, you must define a bank transaction code for each code that you expect to receive from each bank that you use. Transaction types include: Payment, Receipt, Miscellaneous Payment, Miscellaneous Receipt, Stopped, Rejected, NSF, Sweep In, and Sweep Out.

Setting Up Oracle Cash Management: Bank Statement Open Interface

Bank file

Import program

Bank Statement Open Interface tables

Header

Lines

Using the Bank Statement Open Interface Before you can reconcile transactions with a bank statement, you need to enter the bank statement information into Oracle Cash Management. If your bank provides bank statements in a flat file, you can use the bank statement open interface to load this information into Oracle Cash Management using the Bank Statement Loader program or a custom loader program. The Bank Statement Open Interface consists of two bank statement open interface tables:

Bank Statement Headers Interface Table CE_STATEMENT_HEADERS_INT_ALL Bank Statement Lines Interface Table CE_STATEMENT_LINES_INTERFACE

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Setting Up Oracle Cash Management: Reconciliation Open Interface

Reconcile settlements created in Oracle Treasury with your bank statements

Clear and reconcile payments and receipts originating in applications other than Oracle Applications

Through the Cash Management Reconciliation Open Interface, you can:

Find Treasury settlements that are available for reconciliation Automatically or manually reconcile Treasury settlements to bank statement lines Find reconciled Treasury settlements Find external transactions available for clearing and reconciliation Manually clear external transactions Automatically or manually reconcile external transactions to bank statement lines Find cleared and reconciled external transactions

After setup, you can run AutoReconciliation or clear or reconcile open interface transactions manually. You do not run the Reconciliation Open Interface as a separate program. Cash Management automatically retrieves the necessary data from the open interface view (CE_999_INTERFACE_ V) for matching bank statement lines to external transactions. You can automatically or manually reconcile Treasury settlements and unreconcile them after reconciliation. However, you cannot clear or unclear Treasury settlements. Refer to Using Reconciliation Open Interface to Reconcile Treasury Settlements in the Oracle Cash Management User Guide for more information.

Setting Up Oracle Cash Management: External Cashflow Open Interface

Set up the External Cashflow Open Interface to collect cash flow amounts from external systems. Local database Remote database Utilize external data sources for cash forecasting and cash positioning.
Through two source transaction types, Open Interface Inflow and Open Interface Outflow, you can include external application transaction sources for cash forecasting and cash positioning. With two separate source transaction types for external source transactions, you can easily indicate whether the transaction source consists of cash inflow or outflow.

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The External Cashflow Open Interface collects cash flow amounts from your external systems, and the Cash Forecasting and Cash Positioning modules summarize and calculate the data to include in your cash forecasts and positions with other Oracle Applications data. You can include transactions located on a remote database in your cash forecasts and cash positions. For each Oracle Application or non-Oracle application source type on a distributed database, you need to specify a database link. After the setup, you can generate a cash forecast and cash position, and automatically retrieve data available from the defined external sources. You do not run the External Cashflow Open Interface as a separate program. To use the External Cashflow Open Interface effectively, refer to Preparing to Use the External Cash ow Open Interface in the Oracle Cash Management User Guide.

Setting Up Oracle Cash Management: Sequential Document Numbering

Define document flexfield

Define document sequences

Define document categories

Set sequential numbering system profile option

Assign document sequences to documents

Through the Document Sequences feature in Oracle Application, Cash Management can assign sequential document numbers to your bank statements. Use the System Administrator responsibility when setting up sequential numbering.