ORACLE R12 Cash Management

2006 KBACE Technologies, Inc.

New Features - Oracle Cash

Management
Bank Account Model
Bank Account Balances and Interest Calculations
Bank Account Transfers
Subledger Accounting
Bank Statement Reconciliation
Multi-org Access Control and Security

2006 KBACE Technologies, Inc.

Bank Account Model

Setup , maintenance, and control of all internal bank
account information is much easier

a single access point for defining and managing internal

bank accounts for Oracle Payables, Oracle Receivables,
Oracle Payroll,Oracle Cash Management, and Oracle
Treasury.

Bank account access for each application is explicit for

internal security and control purposes.

2006 KBACE Technologies, Inc.

Bank Account Model

Each account is associated with a Bank and Bank Branch
defined in Oracles common Trading Community
Architecture (TCA).

A single Legal Entity is granted ownership of each

internal bank account.

One or more Organizations are granted usage rights,

which provides significant benefits in key areas like
reconciliation.

Reconciliation options can now be defined at the bank

account level, providing even more flexibility and control

of that process.

2006 KBACE Technologies, Inc.

Bank Account Balances & Interest

Calculations
Many new bank account balance types are supported for
all internal bank accounts including ledger, available,
value dated, 1-day float, 2-day float, and projected
balances.

Users are able to track closing ledger and available

balances as well as month-to-date and year-to-date

averages.

2006 KBACE Technologies, Inc.

Bank Account Transfers

Bank Account Transfer functionality was previously

supported only through Oracle Treasury. Now, directly in

Oracle Cash Management.

This feature allows users to create these types of cash

transfers between internal bank accounts manually or
automatically through physical cash pools.

Payment processing and accounting is managed via

Oracle Payments and Oracle Subledger Accounting

2006 KBACE Technologies, Inc.

Subledger Accounting

2006 KBACE Technologies, Inc.

Bank Statement Reconciliation

Bank Transaction Codes can be linked to multiple
sources.

Previously each bank transaction code had to be linked

to a single source, such as AP. This could create an issue

if the bank was using the same transaction code to
report back a payment that was initiated from an
application other than AP.

2006 KBACE Technologies, Inc.

Multi-org Access Control & Security

Multi-Org Access Control enables companies that have
implemented a Shared Services operating model to
efficiently process business transactions by allowing
them to access, process, and report on data for an
unlimited number of operating units within a single
applications responsibility.

2006 KBACE Technologies, Inc.

TCA in R12

New trading entities

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Banks & Bank Branches

Suppliers

Legal Entity

2006 KBACE Technologies, Inc.

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2006 KBACE Technologies, Inc.

TCA in R12: Bank Account

Model
Trading Community
Architecture (TCA)

Cash Management

Payables

Bank

Bank Branch

Bank Account

Receivables

Payroll
Treasury

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2006 KBACE Technologies, Inc.

TCA in R12: Bank Account Model

Pay invoices from different OUs with 1 instruction

New Payments Module

New Bank Module
New Bank & Credit Card Features

OU A

OU B

Payments
OU C

Single
Payment
Instruction

Invoices

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Bank

Sub Ledger
Accounting

2006 KBACE Technologies, Inc.

TCA in R12: Bank Account

Model Benefits
Reduce number of access points to manage bank accounts

Centralized user interface

Improve visibility and control of bank accounts

Multi-org access control

Simplify bank reconciliation

Single bank statement can be reconciled across multiple

Operating Units

Increase percentage of automatically reconciled transactions

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Bank account level reconciliation parameters add flexibility

2006 KBACE Technologies, Inc.

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2006 KBACE Technologies, Inc.

Internal Bank Accounts

In 11i :
Internal Banks defined in AP and that is shared by AP/AR/CE, Payroll and
Treasury and they are bank accounts often replicated in multiple OUs
In R12:
Bank and Branch become part of TCA Parties.
Internal Bank Account in Cash Management which is owned by a Legal Entity.
Here the Operating units have granted usage rights.
Note:
Banks and Bank Branches: ce_bank_branches_v or cebv_bank_branches
These banks and bank branches are shared across internal and external bank
accounts

Internal bank accounts: ce_bank_accounts

Internal Bank accounts uses: ce_bank_account_uses_all
AP/AR/Payroll banks are specified by, ap_use_enable_flag, ar_use_enable_flag and
pay_use_enable_flag.
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2006 KBACE Technologies, Inc.

Bank, Branch and Bank account attributes in AP_BANK_BRANCHES and

AP_BANK_ACCOUNTS_ALL tables are upgraded to to HZ_PARTIES and
the new tables in Cash Management.
Three key CE tables now as:
1.CE_BANK_ACCOUNTS for bank accounts
2.CE_BANK_ACCT_USES_ALL for account uses by OU& LE
3.CE_GL_ACCOUNTS_CCID for bank account use accounting data

1. CE_BANK_ACCOUNT stores bank account attributes

2. CE_BANK_ACCT_USES_ALL table stores the bank account use
attributes specific to Operating Unit (AR, AP) and Legal Entity
(Treasury)

3. CE_GL_ACCOUNTS_CCID stores accounting data pertaining to the

bank account use

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2006 KBACE Technologies, Inc.

The TCA tables used by Cash Management for modeling Banks and Bank
Branches are listed below:
1.
2.
3.
4.
5.
6.
7.
8.
9.

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HZ_PARTIES
HZ_RELATIONSHIPS
HZ_RELATIONSHIP_TYPES
HZ_ORG_CONTACTS
HZ_ORG_CONTACT_ROLES
HZ_CONTACT_POINTS
HZ_PARTY_SITES
HZ_LOCATIONS
HZ_ORGANIZATION_PROFILES

2006 KBACE Technologies, Inc.

HZ_ORGANIZATION_PROFILES - stores additional attributes of banks and bank

branches along with the history of changes made to Banks and Bank Branches.
HZ_PARTIES - stores the contact person at the bank, bank branch and bank
account
HZ_CONTACT_POINTS - stores contact methods, details
HZ_ORG_CONTACTS - stores the contacts title
HZ_ORG_CONTACT_ROLES - stores the contacts purpose or role). T
HZ_LOCATIONS - Stores address details of Banks and Bank Branches
HZ_PARTY_SITES - stores party sites

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2006 KBACE Technologies, Inc.

Impact of Upgrade
1. With Upgrade banks and branches migrated to TCA parties
2. Banks merged if the following attributes are all the same:
a. Bank Number
b. Institution type
c. Country
d. Bank admin email
e. Bank name alt
f. Tax payer ID
g. Tax reference number
h. Description, Effective dates
3. Bank accounts, bank account uses are migrated into cash management.
4. Transactions are stamped with the bank account uses identifiers as part of the
upgrade

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2006 KBACE Technologies, Inc.

Suppliers Bank Accounts

In 11i:
Banks/Branches defined in AP
Bank accounts often replicated in multiple OUs Before
R12 :
Suppliers, Banks and Branches are defined as Parties in TCA
Supplier (party's) payment information and all payment instruments (Bank
Accounts, Credit Cards) moved into Oracle Payments.
Note:
Banks and Bank Branches: ce_bank_branches_v (it's a view)
These banks and bank branches are shared across internal and external bank
account

External bank accounts: iby_ext_bank_accounts

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2006 KBACE Technologies, Inc.