© 2006 KBACE Technologies, Inc. 1 ORACLE R12 –Cash Management
© 2006 KBACE Technologies, Inc.1
ORACLE R12 –Cash Management
© 2006 KBACE Technologies, Inc.2
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
© 2006 KBACE Technologies, Inc.3
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
© 2006 KBACE Technologies, Inc.4
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
© 2006 KBACE Technologies, Inc.5
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
© 2006 KBACE Technologies, Inc.6
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
© 2006 KBACE Technologies, Inc.7
Subledger Accounting
© 2006 KBACE Technologies, Inc.8
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
© 2006 KBACE Technologies, Inc.9
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
© 2006 KBACE Technologies, Inc.10
TCA in R12
New trading entities• Banks & Bank Branches • Suppliers• Legal Entity
© 2006 KBACE Technologies, Inc.11
© 2006 KBACE Technologies, Inc.12
TCA in R12: Bank Account Model
Bank
Bank Branch Bank Account
Trading Community Architecture (TCA)
Cash Management
Treasury
Payables
Receivables
Payroll
© 2006 KBACE Technologies, Inc.13
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
© 2006 KBACE Technologies, Inc.14
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
© 2006 KBACE Technologies, Inc.15
© 2006 KBACE Technologies, Inc.16
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.
© 2006 KBACE Technologies, Inc.17
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.
© 2006 KBACE Technologies, Inc.18
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
© 2006 KBACE Technologies, Inc.19
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
© 2006 KBACE Technologies, Inc.20
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
© 2006 KBACE Technologies, Inc.21
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