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In prior releases, bank account balances were only available as a part of the
bank account statement. The bank account interest calculation was only
available for bank accounts set up in Treasury. In Release 12, the functionality
to keep track of the multiple bank account balance types and calculate
accrued interest is available to all internal bank accounts set up in the
centralized bank account model.
Not only can you enter the balances manually, but also you can import them
automatically at the same time when the bank statement is imported. In
addition to the actual historic balances, you can keep track of the projected
balances. Such balances can be entered manually or copied over from the Cash
Position. You can then create reports that will compare the actual balances
versus projected, and you can accomplish it in either an onscreen report or via
XML Publisher. Finally, to simplify the bank account interest calculation, you
can create reusable interest rate schedules that will contain the interest rates
and other interest calculation parameters. Interest calculation features will
work not only for stand-alone bank accounts but also for the notional cash
pools as well.
In Release 12, you are able to create bank account transfers in Cash
Management. The transfers can be initiated, approved, settled and accounted
for. The settlement is done through the Payments application, while the
accounting is done though the Subledger Accounting engine.
With manual transfers, you have the option of creating and using a payment
template. The template will default the transfer information, such as the
source and destination bank accounts, currency, and payment method, and can
be used in the same fashion as a repetitive or semi-repetitive wire template
created by your bank.
In cases when the settlement of the bank account transfer does not have to be
initiated by the system (for example, for ZBA bank account transfers that the
bank processes on its own), there is an option to exclude such a transfer from
the settlement process and only create the accounting entries.
Finally, the UMX security model lets you define who can create bank account
transfers for which legal entities. The settlement authorization function is also
separate from the transfer creation, so you can implement the separation of
duties for bank account transfer management.
The Payments application formats your payment request and sends it to the
bank. Any exceptions in the payment process are communicated back in the
form of an error status. If settlement of the bank account transfer errors out,
you can see the reason so that the cause of the error can be rectified and the
bank account transfer recreated. If the payment is processed without any
exception, you see a successful payment status returned.
The journal creation rules are defined per event class/event type. In Cash
Management, there are two event classes: Bank Account Transfer and Bank
Statement Cash Flow. An accounting event for a Bank Account Transfer, for
example, would be the creation or cancellation of a bank account transfer. So,
any time a bank account transfer is created, an accounting event is created as
well. Based on the rule setup, there may or may not be a resulting journal
entry. You may set up rules to generate journal entries for some events, but
not for others.
Transaction object and sources are the data model for each subledger that
contains the transaction attributes/information made available to be used
during journal rule setup and journal entry generation.