© 2006 kbace technologies, inc. 1 oracle r12 –cash management

© 2006 KBACE Technologies, Inc.1

ORACLE R12 –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

New Features - Oracle Cash Management


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.

Bank Account Model


Each account is associated with a Bank and Bank Branch defined in Oracle’s 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.

Bank Account Model


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.

Bank Account Balances & Interest Calculations


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

Bank Account Transfers


Subledger Accounting


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.

Bank Statement Reconciliation


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.

Multi-org Access Control & Security


TCA in R12

New trading entities• Banks & Bank Branches • Suppliers• Legal Entity


TCA in R12: Bank Account Model

Bank

Bank Branch Bank Account

Trading Community Architecture (TCA)

Cash Management

Treasury

Payables

Receivables

Payroll


TCA in R12: Bank Account Model

OU A

OU B

OU C BankSingle Payment

Instruction

Invoices

Payments

Sub Ledger Sub Ledger AccountingAccountingSub Ledger Sub Ledger AccountingAccounting

• New Payments Module

• New Bank Module

• New Bank & Credit Card Features

Pay invoices from different OUs with 1 instruction


TCA in R12: Bank AccountModel 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 • Bank account level reconciliation parameters add flexibility


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 OU’s

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_accountsInternal 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.


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

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.


The TCA tables used by Cash Management for modeling Banks and Bank Branches are listed below:

1. HZ_PARTIES 2. HZ_RELATIONSHIPS 3. HZ_RELATIONSHIP_TYPES 4. HZ_ORG_CONTACTS 5. HZ_ORG_CONTACT_ROLES 6. HZ_CONTACT_POINTS 7. HZ_PARTY_SITES 8. HZ_LOCATIONS 9. HZ_ORGANIZATION_PROFILES


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 contact’s title

HZ_ORG_CONTACT_ROLES - stores the contact’s purpose or role). T

HZ_LOCATIONS - Stores address details of Banks and Bank Branches

HZ_PARTY_SITES - stores party sites


Impact of Upgrade1. With Upgrade banks and branches migrated to TCA parties2. Banks merged if the following attributes are all the same:

a. Bank Numberb. Institution typec. Countryd. Bank admin emaile. Bank name altf. Tax payer IDg. Tax reference numberh. 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


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

© 2006 kbace technologies, inc. 1 oracle r12 –cash management

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