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  • 1. Cash and Treasury Training Exercises Created on 2 Oct 2011
  • 2. COPYRIGHT & TRADEMARKS Copyright © 2003, 2006, Oracle. All rights reserved. Powered by OnDemand Software. Distributed by Oracle under license from Global Knowledge Software LLC. © 1998-2006. All rights reserved. The information contained in this document is subject to change without notice. If you find any problems in the documentation, please report them to us in writing. This document is not warranted to be error-free. Except as may be expressly permitted in your license agreement for these Programs, no part of these Programs may be reproduced or transmitted in any form or by any means, electronic or mechanical, for any purpose. If this documentation is delivered to the United States Government or anyone using the documentation on behalf of the United States Government, the following notice is applicable: U.S. GOVERNMENT RIGHTS The U.S. Government’s rights to use, modify, reproduce, release, perform, display, or disclose these training materials are restricted by the terms of the applicable Oracle license agreement and/or the applicable U.S. Government contract. Oracle, JD Edwards, PeopleSoft, and Siebel are registered trademarks of Oracle Corporation and/or its affiliates. Other names may be trademarks of their respective owners.
  • 3. Training Guide Cash and Treasury Training Exercises Table of Contents Oracle AGSS Contacts......................................................................................................1 Required Set Up.................................................................................................................4 Cash (Liquidity) Management........................................................................................20 Common Transaction Types...........................................................................................56 Process Transactions.......................................................................................................97 Reporting........................................................................................................................119 Page iii
  • 4. Training Guide Cash and Treasury Training Exercises Oracle AGSS Contacts John Killen Procedure John Killen Global Solution Architect Oracle Cash Management and Treasury Northern California Office +1-415-290-6960 (cell) +1-530-587-3377 (home office) john.killen@oracle.com John joined Oracle in 1999 and specializes in the Cash Management and Treasury areas. He previously led both Oracle Product Management and Product Strategy teams focusing in this area. Prior to Oracle, John worked at Sungard Treasury Systems as a lead implementation consultant during engagements in a variety of industries. He also has practical experience in cash management and treasury, having performed that role for over 5 years at the University of Colorado. Page 1
  • 5. Training Guide Cash and Treasury Training Exercises Step Action 1. Press [Enter]. 2. End of Procedure. Randy Pollak Procedure Randy Pollak Global Solution Architect Oracle Cash Management and Treasury Page 2
  • 6. Training Guide Cash and Treasury Training Exercises Northern California Office +1-415-515-0203 (cell) randy.pollak@oracle.com Randy joined Oracle in 2004 and specializes in the Cash Management and Treasury areas. Previously, Randy was a stock and bond broker with Prudential Bache and Dean Witter prior to working 10 years at Sungard Treasury Systems. He also worked a shorter time at yet another specialized treasury vendor called Reval. Randy has extensive cash management and treasury industry knowledge and is very familiar with a wide variety of competitor products in this space. Step Action 1. Press [Enter]. 2. End of Procedure. Page 3
  • 7. Training Guide Cash and Treasury Training Exercises Required Set Up Create New User and Assign Responsibility Procedure In this exercise, we will create a new Oracle Applications user and assign responsibilities to begin using the product. Step Action 1. From the System Administrator Responsibility, open the Security -> User menu Page 4
  • 8. Training Guide Cash and Treasury Training Exercises Step Action navigator item. Double-click the Define list item. 2. Enter the desired information into the User Name field. Enter "XXUSER". "XX" represents your Terminal number in the classroom. E.g. 01USER, 02USER, 03USER... 3. Press [Tab]. 4. Enter the desired information into the Password field. Enter "ORACLE". 5. Press [Tab]. 6. Confirm your password. Enter the desired information into the Password field. Enter "ORACLE". 7. Press [Tab]. 8. Make the bottom half of the screen active and in entry mode. Click in the Responsibility field. 9. Enter the desired information into the Responsibility field. Enter "Treasury, Cash and Risk Management Superuser". 10. Press [Tab]. 11. Add another responsibility by clicking on the next row. Click in the Responsibility field. 12. Enter the desired information into the Responsibility field. Enter "System Administrator". 13. Press [Tab]. 14. Click the Save button. 15. Click the Close Window button. 16. End of Procedure. Page 5
  • 9. Training Guide Cash and Treasury Training Exercises Define User Access Levels Procedure In this exercise, we will map an Oracle Applications user to a new Treasury user and assign company and deal level access controls. Page 6
  • 10. Training Guide Cash and Treasury Training Exercises Step Action 1. From the Treasury, Cash and Risk Management Superuser Responsibility, open the Setup -> System -> User Access Levels menu navigator item. Double-click the User Access Levels list item. 2. Click the New button. 3. Enter the desired information into the Treasury User field. Enter "XXJOHN". "XX" represents your terminal number. E.g. 01, 02, 03... 4. Press [Tab]. 5. Enter the desired information into the Description field. Enter "John Killen". 6. Press [Tab]. 7. Map the Treasury User back to the Oracle Applications User ID. Enter the desired information into the Application User field. Enter "XXUSER". 8. Press [Tab]. 9. Click in the Company field. Grant this user access to the appropriate companies (or Legal Entities). In our case, we will only grant access to one company for now. 10. Click the Company List of Values object. 11. Enter the desired information into the Find field. Enter "VISION". The treasury activity for many companies can be tracked in Oracle Treasury and access to view and enter data can be restricted for each user. 12. Click the Find button. 13. Click the Deal Access tab. Similarly, you can control what types of deals each user can enter. Perhaps they can only Buy some transactions and not Sell them. 14. As you can see on the right side of the screen, you can control both input access as well as the ability to validate whether deals have been entered accurately. Accept the defaults for now. Click the Save button. 15. Press the left mouse button on the Close Window object. Page 7
  • 11. Training Guide Cash and Treasury Training Exercises Step Action 16. End of Procedure. Create Counterparties and Their Bank Accounts Procedure In this exercise, we will create two counterparties, a bank and a broker, and their bank accounts. Page 8
  • 12. Training Guide Cash and Treasury Training Exercises Step Action 1. From the Treasury, Cash and Risk Management Superuser Responsibility, open the Setup -> Parties -> Counterparty Profiles menu navigator item. Double-click the Counterparty Profiles list item. 2. First, let's create one of our banks. Ultimately, this bank can be a counterparty for some of the deals we make. It may also be a bank where we hold some of our own bank accounts. Remember, "XX" represents your terminal number. E.g. 01BANK, 02BANK, 03BANK... Enter the desired information into the Party Code field. Enter "XXBANK". 3. Press [Tab]. 4. Enter the desired information into the Full Name field. Enter "XX Bank Name". 5. Press [Tab]. 6. Press [Tab]. (again) 7. Enter the desired information into the Short Name field. Enter "XXBANK". 8. Press [Tab]. 9. Enter the desired information into the Country field. Enter "United States". 10. Press [Tab]. 11. In order to make this particular counterparty available for trading foreign exchange transactions... Click the FX option. 12. Similarly, in order to make this particular counterparty available for trading money market, or interest bearing, transactions... Click the MM option. 13. If you intended to issue or buy stock through this counterparty, you would continue by checking Equity Market. You could also identify it for other purposes as shown. 14. Click the Save button. 15. Now, let's define some bank accounts for this bank. In this case, we are setting up XXBank's own bank accounts, not our own company's accounts help at XXBank. Setting up our own company's bank accounts will be covered in a different exercise. Click the Settle Account Detail button. 16. Enter the desired information into the Account Number field. Enter "XX100-123456". Page 9
  • 13. Training Guide Cash and Treasury Training Exercises Step Action "XX" represents your terminal number. 17. Press [Tab]. 18. Enter the desired information into the Currency field. Enter "USD". 19. Press [Tab]. 20. Let's make this the default USD bank account for XXBANK. Click the Default Account option. 21. Press [Tab]. 22. Press [Tab]. (again) 23. Enter the desired information into the Account Name field. Enter "XX Bank's USD A/C". 24. Press [Tab]. 25. Press [Tab]. (again) 26. Enter the desired information into the Bank Code field. Enter "XXBANK". 27. Press [Tab]. 28. Enter the desired information into the Address field. Enter "100 Wallstreet". 29. Press [Tab]. 30. Enter the desired information into the Location field. Enter "New York City, NY". 31. Click the Save button. 32. Click the Close Window button. 33. Now, let's create another Counterparty. This time, we will create a broker that you might use for buying investments or issuing debt, for instance. Click the New button. 34. Enter the desired information into the Party Code field. Enter "XXBROK". 35. Press [Tab]. 36. Enter the desired information into the Full Name field. Enter "XX Broker Name". 37. To complete this training exercise, you should continue setting up XX Broker, again making it available for FX and MM transactions. Also, for both XX Bank and XX Page 10
  • 14. Training Guide Cash and Treasury Training Exercises Step Action Broker, you should define at least one bank account in each of the following currencies: USD, CAD, EUR, GBP. 38. End of Procedure. Create Company and Your Bank Accounts Procedure In this exercise, we will create a new company and your own bank accounts. Page 11
  • 15. Training Guide Cash and Treasury Training Exercises Step Action 1. From the Treasury, Cash and Risk Management Superuser Responsibility, open the Setup -> Parties -> Company Profiles menu navigator item. Double-click the Company Profiles list item. 2. Let's create our own company. Click the New button. 3. Enter the desired information into the Company field. Enter "XXCOMP". "XX" represents your terminal number. 4. Press [Tab]. 5. Press [Tab]. (again) 6. We need to link Oracle Treasury's company to the appropriate Legal Entity, which is already defined as part of the broader Oracle Applications implementation. Enter the desired information into the Legal Entity field. Enter "XX Legal Entity". 7. Press [Tab]. 8. Enter the desired information into the Short Name field. Enter "XX COMPANY". 9. Press [Tab]. Page 12
  • 16. Training Guide Cash and Treasury Training Exercises Step Action 10. Enter the desired information into the Full Name field. Enter "XX COMPANY, INC". 11. Click the Company Parameters tab. 12. Click in the FX Tolerance field. 13. Enter the desired information into the Journal Transfer in Closed Period field. Enter "Next". 14. Press [Tab]. 15. Enter the desired information into the Interest Includes field. Enter "Corporate". 16. Press [Tab]. 17. Enter the desired information into the Interest Rounding field. Enter "Detail". 18. Press [Tab]. 19. Click the Suspense Account List of Values button. 20. Click the OK button. or Press [O]. 21. Enter the desired information into the Department List Values field. Enter "000". 22. Enter the desired information into the Account List Values field. Enter "2990". 23. Click the OK button. 24. Press [Tab]. 25. Enter the desired information into the Allow Unbalanced Journal Transfer field. Enter "No". 26. Press [Tab]. 27. Press [Tab]. (again) 28. Enter the desired information into the FX Tolerance field. Enter "2". 29. Press [Tab]. 30. Enter the desired information into the Interest Includes field. Enter "Last". Page 13
  • 17. Training Guide Cash and Treasury Training Exercises Step Action 31. Press [Tab]. 32. Enter the desired information into the Interest Rounding field. Enter "Nearest". Step Action 33. Press [Tab]. Page 14
  • 18. Training Guide Cash and Treasury Training Exercises Step Action 34. Accept the rest of the Parameter default values. Click the Save button. 35. Now, let's define our own Company's bank accounts. Click the Bank Account Details tab. 36. Enter the desired information into the Account Currency field. Enter "USD". 37. Press [Tab]. 38. Enter the desired information into the Account Number field. Enter "XX100-555555". "XX" represents your terminal number. 39. Press [Tab]. 40. Enter the desired information into the Account Name field. Enter "XX USD Conc A/C". 41. Press [Tab]. 42. Press [Tab]. (again) 43. Our own bank account is held at our main bank. Enter the desired information into the Bank Code field. Enter "XXBANK". Page 15
  • 19. Training Guide Cash and Treasury Training Exercises Step Action 44. Press [Tab]. 45. Enter the desired information into the Street Name field. Enter "100 Wallstreet". 46. Press [Tab]. 47. Let's make this our company's default bank account for USD. Click the Default Account option. 48. Press [Tab]. 49. Enter the desired information into the Bank Location field. Enter "New York City, NY". 50. Click the Save button. 51. Continue with this training exercise. You should create a total of 3 USD bank accounts for your company. The next two accounts should be your USD Deposit A/C and your USD Disbursement A/C. Also, create at least one new company bank account for each of the following currencies: CAD, EUR, and GBP. 52. End of Procedure. Create Company Portfolios Procedure In this exercise, we will create new company portfolios that will be used to categorize your transactions. Page 16
  • 20. Training Guide Cash and Treasury Training Exercises Step Action 1. From the Treasury, Cash and Risk Management Superuser Responsibility, open the Setup -> System -> Portfolio Codes menu navigator item. Double-click the Portfolio Codes list item. 2. Let's query for our existing company. You can search for existing records in Oracle Applications by using the View menu item at the top of the screen or by using a short code as we will do in this exercise. Press [F11]. 3. Now that we are in "query mode", we can enter what we are looking for. % is the wildcard key, if needed. Enter the desired information into the Company field. Enter "XXCOMP". 4. To execute the query, we will use a short code. You could also once again use the View menu item above. Press [Ctrl+F11]. 5. Let's create a couple new Portfolios for our Company. Click in the Code field. 6. Enter the desired information into the Code field. Enter "CASH". 7. Press [Tab]. 8. Enter the desired information into the Name field. Enter "Cash Portfolio". Page 17
  • 21. Training Guide Cash and Treasury Training Exercises Step Action 9. Click the Default Internal Portfolio option. 10. Press [Tab]. 11. Enter the desired information into the Code field. Enter "HEDGE". 12. Press [Tab]. 13. Enter the desired information into the Name field. Enter "Hedging Portfolio". 14. Click the Save button. 15. Click the Close Window button. 16. From the Treasury, Cash and Risk Management Superuser Responsibility, open the Banking Activities -> Current Account Balances menu navigator item. Double-click the Current Account Balances list item. 17. Enter the desired information into the Company field. Enter "XXCOMP". 18. Click the Find button. 19. You now see the list of all the bank accounts defined for your company. Click the scrollbar. 20. Click in the Portfolio field. 21. Enter the desired information into the Portfolio field. Enter "CASH". 22. Click in the Portfolio field. 23. Enter the desired information into the Portfolio field. Enter "CASH". 24. Click in the Portfolio field. 25. Enter the desired information into the Portfolio field. Enter "CASH". 26. Click in the Portfolio field. 27. Enter the desired information into the Portfolio field. Enter "CASH". 28. Click in the Portfolio field. 29. Enter the desired information into the Portfolio field. Enter "CASH". Page 18
  • 22. Training Guide Cash and Treasury Training Exercises Step Action 30. Click in the Portfolio field. 31. Enter the desired information into the Portfolio field. Enter "CASH". 32. Click the Save button. 33. Click the Close Window button. 34. End of Procedure. Page 19
  • 23. Training Guide Cash and Treasury Training Exercises Cash (Liquidity) Management Enter Bank Balances Procedure In this exercise, we will enter new closing bank balances for your company's accounts. Page 20
  • 24. Training Guide Cash and Treasury Training Exercises Step Action 1. From the Treasury, Cash and Risk Management Superuser Responsibility, open the Banking Activities -> Current Account Balances menu navigator item. Double-click the Current Account Balances list item. 2. Enter the desired information into the Company field. Enter "XXCOMP". 3. Click the Find button. or Press [i]. 4. Click the Maintain Balances button. 5. Enter a relative date for yesterday (-1 days from today). Oracle Treasury also supports date short codes like "M" for months, "Y" for years. Enter the desired information into the Date field. Enter "-1". Step Action 6. Press [Tab]. Page 21
  • 25. Training Guide Cash and Treasury Training Exercises Step Action 7. Press [Tab]. (again) 8. Press [Tab]. (again) 9. Similarly, Oracle Treasury supports amount short codes like "K" or "T" for thousands, "M" for millions, and "B" for billions. Enter the desired information into the Statement Balance field. Enter "150K". 10. Press [Tab]. 11. Click the Save button. 12. Click the Close Window button. 13. Highlight the second bank account in your list. Click in the Company field. 14. Click the Maintain Balances button. 15. Enter the desired information into the Date field. Enter "-1". 16. Press [Tab]. Page 22
  • 26. Training Guide Cash and Treasury Training Exercises Step Action 17. Press [Tab]. (again) 18. Enter the desired information into the Statement Balance field. Enter "5K". 19. Press [Tab]. 20. Click the Save button. 21. Click the Close Window button. 22. Continue with this exercise until you have entered closing balances for yesterday for all your bank accounts. Some sample balances are shown to the right where concentration accounts might typically close with ~100K to 200K and sub accounts for each currency might be ~0 to 20K depending on their purposes and how accurately cash is being positioned. Click in the Company field. 23. When you have finished with all your accounts, you can review the latest available balances by using the Find Window. Click the Find button. 24. Click the Find button. or Press [i]. 25. Click the Close Window button. 26. End of Procedure. Enter Inter-Account Cash Transfer Page 23
  • 27. Training Guide Cash and Treasury Training Exercises Procedure In this exercise, we will enter an inter-account transfer, moving money from one of your company's bank accounts to another. Step Action 1. From the Treasury, Cash and Risk Management Superuser Responsibility, open the Other Deal Items -> Inter-Account Transfers menu navigator item. Double-click the Inter-Account Transfers list item. 2. Click in the Company field. 3. Enter the desired information into the Company field. Enter "XXCOMP". 4. Press [Tab]. 5. To review the last closing balances reported by your bank(s)... Click in the Currency field. 6. Let's manually transfer the total closing balance from your USD Disbursement A/C into your USD Concentration A/C. Click in the From Bank Code field. Page 24
  • 28. Training Guide Cash and Treasury Training Exercises Step Action 7. Enter the desired information into the From Bank Code field. Enter "XXBANK". 8. Press [Tab]. 9. Click the XX USD Disbursement A/C list item. 10. Click the OK button. or Press [O]. 11. Press [Tab]. 12. Enter the desired information into the Pay Amount field. Enter "5K". 13. Press [Tab]. 14. Press [Tab]. (again) 15. Enter the desired information into the Portfolio field. Enter "CASH". 16. Press [Tab]. 17. Press [Tab]. (again) 18. Enter the desired information into the Comments field. Enter "Manual Balance Transfer". 19. Press [Tab]. 20. Enter the desired information into the To Bank Code field. Enter "XXBANK". 21. Press [Tab]. 22. Click the OK button. Since the USD Concentration A/C is already highlighted. or Press [O]. 23. Click the Save button. 24. Notice that the Closing Balances in your USD Concentration and Disbursement accounts are updated by +/- 5,000 respectively. Entering this transfer in Oracle Treasury does not yet physically move funds at your bank(s). Transfers and other payments must be approved and/or processed by your Treasury Settlements person, which will be covered in a later exercise. 25. Click the Review Transfers button. Page 25
  • 29. Training Guide Cash and Treasury Training Exercises Step Action or Press [R]. 26. Click the scrollbar. 27. Click the Close Window button. 28. Click the Close Window button. 29. End of Procedure. Create and View Cash Position Worksheet Procedure In this exercise, we will create and view a new cash position worksheet for your company. Page 26
  • 30. Training Guide Cash and Treasury Training Exercises Step Action 1. From the Treasury, Cash and Risk Management Superuser Responsibility, open the Cash Positioning menu navigator item. Double-click the Cash Positioning list item. Page 27
  • 31. Training Guide Cash and Treasury Training Exercises Step Action 2. Click the Create Worksheet button. 3. Click in the Worksheet Name field. 4. Enter the desired information into the Worksheet Name field. Enter "XX Daily Cash Position". 5. Click the Use Calculated Prior Day Cash Flow and Overdue Transactions Balances list. 6. Click the Yes list item. 7. Let's specifically identify which bank accounts should be included in this worksheet that you have access to view. Click the Set Manually button. 8. Click in the Start Date field. 9. Enter the desired information into the Start Date field. Enter "XX COMPANY, INC". 10. Press [Tab]. 11. Click the scrollbar. Page 28
  • 32. Training Guide Cash and Treasury Training Exercises Step Action 12. Click the Include Treasury Inflows option. 13. Click the Include Treasury Outflows option. 14. Click the scrollbar. 15. Now, let's save our Cash Position Worksheet template. Click the Apply button. 16. Click the Generate Cash Position button. 17. Click the View By list. 18. Click the Bank Account list item. 19. Click the Apply button. 20. Since this is the first time that we have run the cash position worksheet for today, the Oracle Treasury will first retrieve the latest available closing balances and perform some offline calculations related to any overdue items. Typically, this program will be scheduled to run overnight immediately after downloading prior day bank statements. Click the Yes button. 21. After waiting for the offline program to complete, let's run our cash position again for today. Click the Apply button. 22. Click the scrollbar. 23. First, notice that all of the bank accounts set up for XX Company are displayed in the results, along with their opening balances and current day's activity. You can easily refine which bank accounts are displayed by adjusting the cash position set up, including viewing bank accounts for specific banks or across multiple Legal Entities. You can also define the display order for the bank accounts from the Current Account Balances screen. Click the 5,000.00 link. 24. You can drill down into multiple levels of detail from the cash position results. In this case, you can review the Inter-Account Transfer. You can also drill down into AP, AR, Payroll, and Bank item details if those sources are included in your worksheet set up. Click the Show link. 25. Click the Cancel button. to return to the main cash position results screen. Page 29
  • 33. Training Guide Cash and Treasury Training Exercises Step Action 26. Click the View By list. 27. Click the Currency list item. 28. Click the Refresh Data button. 29. In the Currency View, balances and cash flows for all the worksheet's bank accounts are aggregated by currency for easy reference of your global cash position. 30. End of Procedure. Create Physical Cash Pool Procedure In this exercise, we will create a new physical cash pool, add it to your company's cash position worksheet, and automate cash transfers based on rules defined in the cash pool. Page 30
  • 34. Training Guide Cash and Treasury Training Exercises Step Action 1. From the Treasury, Cash and Risk Management Superuser Responsibility, open the Setup -> Parties -> Cash Pools menu navigator item. Double-click the Cash Pools list item. Page 31
  • 35. Training Guide Cash and Treasury Training Exercises Step Action 2. Click the Physical Cash Pool list. 3. Click the Physical Cash Pool list item. 4. Click the Go button. 5. Click in the Cash Pool Name field. 6. Enter the desired information into the Cash Pool Name field. Enter "XX USD Cash Pool". 7. Press [Tab]. 8. Press [Tab]. (again) 9. Enter the desired information into the Column Number field. Enter "XX USD Conc A/C". 10. Press [Tab]. Page 32
  • 36. Training Guide Cash and Treasury Training Exercises Step Action 11. Click the Bank Initiated Sweeps list. Page 33
  • 37. Training Guide Cash and Treasury Training Exercises Step Action 12. If you were tracking a bank initiated ZBA structure, you would select 'Yes' from this list. Accounting entries and reconciliation would be automated from priorday bank statements. In our exercise, let's proactively manage the bank account balances ourselves. Click the No list item. 13. Click the Next (1 of 5) button. 14. Click the Add Sub Accounts button. Page 34
  • 38. Training Guide Cash and Treasury Training Exercises Step Action 15. Click the Rounding Factor object. Page 35
  • 39. Training Guide Cash and Treasury Training Exercises Step Action 16. Click the Company or Subsidiary list item. 17. Enter the desired information into the Search By field. Enter "XX%". 18. Click the Go button. 19. Click the Select All link. 20. In our exercise, we will only use bank accounts owned by the same Company. However, it is possible to define cash pools spanning multiple companies, and Oracle Treasury will manage the cash transfers as well as associated in-house banking balances and interest, as needed. Click the Select button. 21. Click the Next (2 of 5) button. 22. Enter the desired information into the Minimum Target Balance field. Enter "25000". 23. Press [Tab]. 24. Enter the desired information into the Maximum Target Balance field. Enter "40000". 25. Press [Tab]. Page 36
  • 40. Training Guide Cash and Treasury Training Exercises Step Action 26. Enter the desired information into the Minimum Payment Amount field. Enter "5000". 27. Press [Tab]. 28. Enter the desired information into the Exchange Type field. Enter "5000". 29. Press [Tab]. Step Action 30. Click the Rounding Factor list. 31. Click the 1000 list item. Page 37
  • 41. Training Guide Cash and Treasury Training Exercises Step Action 32. Click in the Minimum Target Balance field. 33. Enter the desired information into the Minimum Target Balance field. Enter "0". 34. Press [Tab]. 35. Enter the desired information into the Maximum Target Balance field. Enter "0". Page 38
  • 42. Training Guide Cash and Treasury Training Exercises Step Action 36. Click the Rounding Factor list. Page 39
  • 43. Training Guide Cash and Treasury Training Exercises Step Action 37. Click the 1000 list item. 38. Click the Next (3 of 5) button. 39. Click in the Portfolio field. 40. Enter the desired information into the Portfolio field. Enter "CASH". 41. Press [Tab]. 42. Enter the desired information into the Product Type field. Enter "N/A". 43. Click the Next (4 of 5) button. 44. Review the cash pool set up before saving by clicking the Finish Button. Click the Finish button. 45. Click in the Search By Cash Pool Name field. 46. Enter the desired information into the Search By Cash Pool Name field. Enter "XX %". (% is a wildcard character) Page 40
  • 44. Training Guide Cash and Treasury Training Exercises Step Action 47. Click the Go button. Step Action 48. Your cash pool has been saved and can be updated later as needed to add or delete sub accounts or make other modifications. Click the Close Window button. Page 41
  • 45. Training Guide Cash and Treasury Training Exercises Step Action 49. Let's see how this new cash pool can be used in our cash positioning worksheet. Double-click the Cash Positioning list item. Page 42
  • 46. Training Guide Cash and Treasury Training Exercises Step Action 50. Enter the desired information into the Search for Worksheet Name field. Enter "XX %". (Again, % is a wildcard character.) 51. Click the Go button. 52. Click the Update button. 53. Let's first add our new cash pool to the worksheet set up. Click the Set Manually button. 54. Click the Include Cash Pool option. 55. Enter the desired information into the Cash Pool Name field. Enter "XX USD Cash Pool". 56. Let's save our changes and review the new cash position results. Click the Apply button. 57. Click the Generate Cash Position button. 58. Click the View By list. Page 43
  • 47. Training Guide Cash and Treasury Training Exercises Step Action 59. Click the Cash Pool list item. 60. Click the Apply button. Step Action 61. Notice that the representation of 3 USD bank accounts has changed. The total balance and net cash flow in all the accounts is displayed in a single column for the entire Cash Pool. Let's compare this view to individual bank account information. Click the View By list. Page 44
  • 48. Training Guide Cash and Treasury Training Exercises Step Action 62. Click the Bank Account list item. Page 45
  • 49. Training Guide Cash and Treasury Training Exercises Step Action 63. Click the Refresh Data button. Step Action 64. Notice the ending projected surpluses and deficits in the USD Deposit and Disbursement bank accounts based on your new target balances. Oracle Treasury can automatically create transactions to move funds based on your cash pool rules. Click the Generate Cash Leveling Proposal button. 65. The proposal is made automatically by the system. You can review and make changes as needed or simply accept the suggestion. Notice that both transfers will be rounded to the nearest 1,000 and the Disbursement Account is projected to close at its minimum target balance of 25,000. Click the Apply button. 66. Click the Generate button. 67. An offline program is initiated to create the new transactions. Refresh your cash position data after that program completes to see the updated cash flows and projections. Click the Refresh Data button. Page 46
  • 50. Training Guide Cash and Treasury Training Exercises Step Action Step Action 68. The worksheet results for your USD accounts are updated now that your cash has been concentrated based on your rules. Click the Close Window button. 69. End of Procedure. Page 47
  • 51. Training Guide Cash and Treasury Training Exercises Cash Forecasting Procedure In this exercise, we will create a new cash forecast and view results for your company's treasury activity over the next year. Step Action 1. From the Treasury, Cash and Risk Management Superuser Responsibility, open the Cash Forecasting menu navigator item. Double-click the Cash Forecasting list item. Page 48
  • 52. Training Guide Cash and Treasury Training Exercises Step Action 2. Click the Forecast Templates button. 3. First, let's create a new Cash Forecast Template for our company's treasury cash flows. Click the Create Template button. 4. Click in the Template Name field. 5. Enter the desired information into the Template Name field. Enter "XX Company Forecast". ("XX" represents your terminal number) 6. Press [Tab]. 7. Enter the desired information into the Description field. Enter "Global Treasury Cash Flows". 8. Click the Next button. 9. Click the Add Row of Source Type list. 10. Click the Treasury Inflow list item. Page 49
  • 53. Training Guide Cash and Treasury Training Exercises Step Action 11. Click the Go button. 12. Click in the Row Number field. 13. Enter the desired information into the Row Number field. Enter "10". 14. Press [Tab]. 15. Enter the desired information into the Description field. Enter "Inflows". 16. Press [Tab]. 17. Enter the desired information into the Search for Company field. Enter "XX Company". 18. Press [Tab]. 19. This forecast will now include all Treasury Inflows for XX Company. We could further restrict the results by Transaction Type, if needed. Now, let's save and include Treasury Outflows. Click the Apply button. 20. Click the Add Row of Source Type list. 21. Click the Treasury Outflow list item. 22. Click the Go button. 23. Click in the Row Number field. 24. Enter the desired information into the Row Number field. Enter "20". 25. Press [Tab]. 26. Enter the desired information into the Description field. Enter "Outflows". 27. Press [Tab]. 28. Enter the desired information into the Search for Company field. Enter "XX Company". 29. Press [Tab]. 30. Click the Apply button. 31. For this exercise, let's just include Treasury cash flows. It is also possible to add other sources like AP, AR, Expense, Payroll as well as 3rd party data. Now, let's define the time horizon (or time buckets) that we want to include for this forecast template. Page 50
  • 54. Training Guide Cash and Treasury Training Exercises Step Action Click the Next button. 32. Let's start by defining a couple 7 day periods or time buckets. Then, as we get further out, we will increase the number of days in each period to 14, 30, and 180. Ultimately, we will set up this forecast out to 360 days. Click in the Column Number field. 33. Enter the desired information into the Column Number field. Enter "10". 34. Press [Tab]. 35. Enter the desired information into the From field. Enter "1". 36. Press [Tab]. 37. Enter the desired information into the To field. Enter "7". 38. Click in the Column Number field. 39. Enter the desired information into the Column Number field. Enter "20". 40. Press [Tab]. 41. Enter the desired information into the From field. Enter "8". 42. Press [Tab]. 43. Enter the desired information into the To field. Enter "14". 44. Click in the Column Number field. 45. Enter the desired information into the Column Number field. Enter "30". 46. Press [Tab]. 47. Enter the desired information into the From field. Enter "15". 48. Press [Tab]. 49. Enter the desired information into the To field. Enter "30". 50. Click the Column Number list. 51. Enter the desired information into the Column Number field. Enter "40". 52. Press [Tab]. 53. Enter the desired information into the From field. Enter "31". Page 51
  • 55. Training Guide Cash and Treasury Training Exercises Step Action 54. Press [Tab]. 55. Enter the desired information into the To field. Enter "60". 56. Click in the Column Number field. 57. Enter the desired information into the Column Number field. Enter "50". 58. Press [Tab]. 59. Enter the desired information into the From field. Enter "61". 60. Press [Tab]. 61. Enter the desired information into the To field. Enter "90". 62. Click in the Column Number field. 63. Enter the desired information into the Column Number field. Enter "60". 64. Press [Tab]. 65. Enter the desired information into the From field. Enter "91". 66. Press [Tab]. 67. Enter the desired information into the To field. Enter "180". 68. Click in the Column Number field. 69. Enter the desired information into the Column Number field. Enter "70". 70. Press [Tab]. 71. Enter the desired information into the From field. Enter "181". 72. Press [Tab]. 73. Enter the desired information into the To field. Enter "360". 74. That completes the set up for this Forecast Template. You can define as many templates as you would like. Click the Finish button. 75. Click in the Search for Template Name field. 76. Enter the desired information into the Search for Template Name field. Enter "XX Company Forecast". Page 52
  • 56. Training Guide Cash and Treasury Training Exercises Step Action 77. Click the Go button. 78. Now, let's run the report to view our results. Click the Run Forecast button. 79. We can either run the forecast on an ad hoc basis or define this set of parameters and schedule the forecast to run overnight with other reports and programs. Click in the Forecast Name field. 80. First, we can name the results. If you leave this field blank, the results will be named automatically using the forecast template name along with a date and time stamp. Enter the desired information into the Forecast Name field. Enter "XX July 2006 Results". 81. The results will be summarized into a common currency. Click in the Forecast Currency field. 82. Enter the desired information into the Forecast Currency field. Enter "USD". 83. Click in the Exchange Type field. 84. Enter the desired information into the Exchange Type field. Enter "Corporate". 85. Click in the Start Date field. 86. Enter the desired information into the Start Date field. Enter "1-Jul-2006". 87. Click in the Exchange Date field. 88. Enter the desired information into the Exchange Date field. Enter "1-Jul-2006". 89. Click the Opening Balance By Bank Account option. 90. Click the Submit button. 91. Click the View Forecasts button. 92. Click Go periodically until the Processing Status is Complete. Let's review the results. Click the XX July 2006 Results link. 93. The results for each source and time period are summarized in the first screen. Let's drill down into the details using the hyperlinks provided. Click the 29,253,163.59 link. Page 53
  • 57. Training Guide Cash and Treasury Training Exercises Step Action 94. Here, you can see the 5 transactions that make up the total $29.2 million inflow during this period. You can drill down further for more information. This is also true for other sources besides Treasury, if you had included cashflows originating in AP, AR, etc. Click the Show link. 95. Click the Forecast Results link. 96. Instead of reviewing the cash forecast results by Transaction Source, let's look at this same information displayed by Bank Account. Click the View Forecast Results By Bank Account option. 97. The information is summarized across all bank accounts or we can drill down into single accounts for more information. Click the XX EUR Main A/C link. Step Action 98. As you can see, you still have the ability to drill down to the individual transactions. You can also see the running balances and the impacts of the net cashflows in each period. Click the Close Window button. Page 54
  • 58. Training Guide Cash and Treasury Training Exercises Step Action 99. End of Procedure. Page 55
  • 59. Training Guide Cash and Treasury Training Exercises Common Transaction Types Invest Short Term Money Procedure In this exercise, we will invest extra cash in a short term money instrument like an overnight money market fund. Page 56
  • 60. Training Guide Cash and Treasury Training Exercises Step Action 1. From the Treasury, Cash and Risk Management Superuser Responsibility, open the Money Market Transactions -> Short Term Money menu navigator item. Double-click the Short Term Money list item. 2. Enter the desired information into the Company field. Enter "XXCOMP". ("XX" represents your terminal number) 3. Press [Tab]. 4. Enter the desired information into the Cparty field. Enter "XXBANK". ("XX" represents your terminal number) 5. Press [Tab]. 6. Press [Tab]. (again) 7. Depending on whether you have a cash surplus or deficit position, you will either invest or fund (borrow). In our example, let's assume we have excess cash. It is also possible to set up multiple Short Term Money arrangements in different currencies, with different counterparties, and for either investing or borrowing depending on your daily needs. Enter the desired information into the Deal Subtype field. Enter "INVEST". 8. Press [Tab]. 9. Enter the desired information into the Currency field. Enter "GBP". 10. Press [Tab]. 11. Let's also review some of the other "common" details that may be defined for this arrangement. Click the scrollbar. 12. Other parameters for interest calculations, currency revaluation, and which bank accounts are used for settlement are defaulted in but may be changed, if needed. Click the Save button. 13. Now, let's use this Short Term Money vehicle to invest some extra cash we might have on hand (to earn a better interest rate than we would otherwise in a bank account). Click the Transactions button. or Press [n]. 14. Many of the details are defaulted already. Let's first choose a user-defined Product Type that may be set up separately as part of the system implementation. Product Types, along with Portfolios, are useful for reporting purposes and also drive flexible accounting rules. Page 57
  • 61. Training Guide Cash and Treasury Training Exercises Step Action Click in the Product Type field. 15. We already have some Product Types defined. Let's use one named "Call", which refers to the fact that there is no set maturity for these funds and we may renegotiate (or call) the funds back on any day before the cutoff time. Enter the desired information into the Product Type field. Enter "CALL". 16. Press [Tab]. 17. Enter the desired information into the Settlement Date field. Enter "0". (Remember, we can either type in dates and amounts explicitly or use short codes. Oracle Treasury knows "0" means today.) 18. Press [Tab]. 19. Press [Tab]. (today's date is 7-Jul-06) 20. If this transaction had a set Maturity Date, you would enter it here. Press [Tab]. 21. Press [Tab]. (again) 22. Let's assume we already reviewed our Cash Position and we know that we have 4,750,000 GBP to invest for the day. Enter the desired information into the Principal Amt field. Enter "4.75M". 23. Press [Tab]. 24. Press [Tab]. (again) 25. Press [Tab]. (again) 26. Enter the desired information into the Interest Rate field. Enter "4.678". 27. Once we save the transaction, this Short Term Money investment is stored in the system. All related cash flows and positions will be updated automatically. For instance, if you review your Cash Position worksheet again (remember we assumed that we had some 4,750,000 GBP in excess cash), the position will be updated to reflect the outgoing payment due for that amount and our projected closing bank balance will be updated. Click the Save button. 28. End of Procedure. Page 58
  • 62. Training Guide Cash and Treasury Training Exercises Renegotiate Short Term Money Procedure In this exercise, we will renegotiate the terms of our original short term money investment, increasing the outstanding balance and changing the interest rate. Step Action 1. From the Treasury, Cash and Risk Management Superuser Responsibility, open the Money Market Transactions -> Short Term Money menu navigator item. Double-click the Short Term Money list item. Page 59
  • 63. Training Guide Cash and Treasury Training Exercises Step Action 2. Let's search for existing "deals" (a.k.a. investment or borrowing agreements we have outstanding with our counterparties) Press [F11]. 3. Press [Tab]. 4. Enter the desired information into the Company field. Enter "XXCOMP". 5. Press [Ctrl+F11]. To execute the query using short codes. You can also use the View -> Query By Example option from the top menu if you are more comfortable with that navigation. 6. Click in the Trans Num field. Notice the existing investment outstanding that we created in the "Invest Short Term Money" training exercise for GBP 4.75 million. 7. Once we highlight the row, we can then Renegotiate the transaction. Click the Select Above Row for Reneg button. 8. Click the Reneg option. 9. Press [Tab]. 10. Enter the desired information into the Reneg Date field. Enter "2". (2 days after today's date, which will be 13-July-06 when this exercise was recorded) 11. Press [Tab]. 12. Notice the interest amount of GBP 2,468.94 will change once the new renegotiated date (or the original transaction's maturity) takes affect. Press [Tab]. 13. Click the scrollbar. 14. If needed, we can settle or compound calculated interest (net or gross of any tax that was included)... Click the Interest Action button. 15. ... in this case, we will just continue to accrue the existing interest until the end of month. Click the Cancel button. 16. We can also renegotiate the principal amount, if needed. Click the Principal Action list. Page 60
  • 64. Training Guide Cash and Treasury Training Exercises Step Action 17. In this case, let's assume we want to increase our original investment position by GBP 1.75 million. Click the Increase list item. 18. Enter the desired information into the Principal Adjustment field. Enter "1.75M". 19. Press [Tab]. 20. Press [Tab]. (again) 21. Change the interest rate from 4.678... Enter the desired information into the Rate field. Enter "4.725". 22. Once again, we could have a pre-defined Maturity Date, if needed. In this case, let's leave the maturity open. Click in the Maturity Date field. 23. Click the Save button. 24. A new cash outflow has been entered into the system due on 13-Jul-06 and the invested balance with XXBANK is increased to GBP 6.5 million as of that date. Click the Close Window button. 25. End of Procedure. Buy Discounted Securities (Commercial Paper) Procedure Page 61
  • 65. Training Guide Cash and Treasury Training Exercises In this exercise, we will invest extra cash in a discounted type security like a commercial paper transaction. Step Action 1. From the Treasury, Cash and Risk Management Superuser Responsibility, open the Money Market Transactions -> Negotiable Instruments -> Discounted Securities menu navigator item. Double-click the Discounted Securities list item. 2. Press [Tab]. 3. Press [Tab]. (again) 4. Enter the desired information into the Company field. Enter "XXCOMP". ("XX" represents your terminal number) 5. Press [Tab]. 6. Enter the desired information into the Counterparty field. Enter "XXBROK". ("XX" represents your terminal number) 7. Press [Tab]. Page 62
  • 66. Training Guide Cash and Treasury Training Exercises Step Action 8. Press [Tab]. (again) 9. Press [Tab]. (... note, in the live application, some users may prefer to point and click the mouse rather than tabbing.) 10. Press [Tab]. (again) 11. Let's assume we have excess cash to invest short term. If we were instead in a borrowing position, we would chose another Deal Subtype to "Issue" debt to fund our operations. Enter the desired information into the Deal Subtype field. Enter "BUY". 12. Press [Tab]. 13. As you may remember, Product Types (along with Portfolios) are user defined. In this case, we will select one called "COMP" for Commercial Paper, a type of discounted security. You might also choose to set up Product Types for other categories like Bankers Acceptance or Certificates of Deposit for this Deal Type. Enter the desired information into the Product Type field. Enter "COMP". 14. Press [Tab]. 15. In this case, let's invest excess Canadian dollars. Enter the desired information into the Currency field. Enter "CAD". 16. Press [Tab]. 17. For now, let's accept the default Day Count Basis of 30/360. Other standard conventions like Actual/365, Actual/Actual, etc are also supported by the system for calculation of interest. Press [Tab]. 18. Enter the desired information into the Start Date field. Enter "0". This short code will translate to Today's date. In this example, 11-July-2006. 19. Press [Tab]. 20. Press [Tab]. (again) 21. Use "W" as the short code for weeks, or in our case October 3rd. Enter the desired information into the Maturity Date field. Enter "12W". 22. Press [Tab]. 23. Press [Tab]. (again) 24. The rate can be quoted on either a Yield or a Discount Basis. Press [Tab]. 25. Enter the desired information into the Trans Rate field. Enter "4.5". Page 63
  • 67. Training Guide Cash and Treasury Training Exercises Step Action 26. Press [Tab]. 27. Press [Tab]. (again) 28. Press [Tab]. (again) 29. In our example, let's buy 5 "parcels" at $2.5 million each. You can just as easily buy 1 parcel for the full amount of $12.5 million. If you are not using a buy and hold investment strategy, the parcel sizes will become important at the time of resale. Enter the desired information into the Size field. Enter "5". 30. Press [Tab]. 31. Enter the desired information into the Face Value field. Enter "2.5M". 32. Press [Tab]. 33. Click the Done button. 34. Notice that your default settlement bank accounts for your company and your counterparty populated automatically. Click the Save button. 35. Click the Close Window button. 36. End of Procedure. Resell Discounted Securities Procedure In this exercise, we will resell a portion of our original investment in commerical paper. Page 64
  • 68. Training Guide Cash and Treasury Training Exercises Step Action 1. From the Treasury, Cash and Risk Management Superuser Responsibility, open the Money Market Transactions -> Negotiable Instruments -> Discounted Security Resales menu navigator item. Double-click the Discounted Security Resales list item. 2. Enter the desired information into the Company field. Enter "XXCOMP". 3. Click the Find button. 4. Click the Scrollbar object. 5. This is our original purchase that we now want to resell. Click the Parcel Details button. 6. Enter the desired information into the Sell field. Enter "4". 7. Press [Tab]. 8. Click the Done button. Page 65
  • 69. Training Guide Cash and Treasury Training Exercises Step Action 9. Click the Create Resale Deal button. 10. Enter the desired information into the Counterparty field. Enter "XXBROK". 11. Click in the Start Date field. 12. Enter the desired information into the Start Date field. Enter "2". 13. Press [Tab]. 14. Click the Interest Details tab. 15. Press [Tab]. 16. Enter the desired information into the Trans Rate field. Enter "4.45". 17. Press [Tab]. 18. Click the Save button. 19. The F4 function key is the short cut to close your active window. Press [F4]. 20. Let's review the details... Double-click the Discounted Securities list item. 21. The F11 function key allows you to search for existing records based on some criteria you enter during the query mode. Press [F11]. 22. Enter the desired information into the Company field. Enter "XXCOMP". (% can be a useful wildcard character) 23. Click in the Deal Date field. 24. Enter the desired information into the Deal Date field. Enter "11-JUL-06". 25. Using the Control (Ctrl) key in combination with the F11 function key executes your search. Press [Ctrl+F11]. 26. This first record is the sell transaction we just entered. Notice that you sold 10,000,000 CAD. Now, let's scroll to the next record satisfying our search criteria using the down arrow key. Press [Down]. 27. Now, you see the original purchase of 12.5 million. The remaining Face Value Balance is reduced to 2.5 million after the resale. Also, the system calculated a small profit, or Page 66
  • 70. Training Guide Cash and Treasury Training Exercises Step Action realized gain, of 121.04. Click the Close Window button. 28. End of Procedure. Enter Wires / Misc Cash Flows Procedure In this exercise, we will set up and enter new miscellaneous cash flows or exposures like Ad Hoc wire payments. Page 67
  • 71. Training Guide Cash and Treasury Training Exercises Step Action 1. From the Treasury, Cash and Risk Management Superuser Responsibility, open the Setup -> Policies -> Deal Types / Product Types menu navigator item. Double-click the Deal Types / Product Types list item. 2. First, let's set up your own "Product Type", or type of wire / miscellaneous cash flow. Note: During your system configuration, it is also possible to change any of these codes or abbreviations to be more consistent with your own terminology. For instance, it is possible to change "Exposures" to "Wires / Misc Cash Flows". Click in the EXP Code field. 3. Click the Product Types tab. 4. Click the New button. 5. Enter the desired information into the Type field. Enter "XXWIRE". ("XX" represents your terminal number) 6. Enter the desired information into the Description field. Enter "XX Misc Wire". 7. Click the Save button. 8. Click the Close Window button. Page 68
  • 72. Training Guide Cash and Treasury Training Exercises Step Action 9. From the Treasury, Cash and Risk Management Superuser Responsibility, open the Setup -> System -> Journal Entry Actions menu navigator item. Double-click the Journal Entry Actions list item. 10. We will cover the full accounting setup as another topic. However, to be able to use Exposures, or wires / miscellaneous cash flows, you must have a basic journal structure defined. Click in the GL Account field. 11. First, let's just identify a specific GL Account that we will use within Oracle Treasury. Enter the desired information into the GL Account field. Enter "01-000-7740-0000- 000". 12. Press [Tab]. 13. You can accept the default GL description or give a shorter reference used within Treasury. Enter the desired information into the Treasury Reference field. Enter "Miscellaneous". 14. Click the Save button. 15. Click the Close Window button. 16. From the Treasury, Cash and Risk Management Superuser Responsibility, open the Other Deal Items -> Exposure Transactions menu navigator item. Double-click the Exposure Transactions list item. 17. Almost there... The last step before entering these types of payments or receipts is to make the various "Product Types" or "Exposure Types" available to your individual Company and to associate the GL Account to use for automatic journal generation later. Click the Setup Exposure Types button. 18. Enter the desired information into the Company field. Enter "XXCOMP". 19. Press [Tab]. 20. Enter the desired information into the Name field. Enter "XXWIRE". 21. Press [Tab]. 22. Click in the GL Account field. 23. Since we only defined one GL Account to use at this time, clicking on the List of Values will automatically populate our account. Click the GL Account button. Page 69
  • 73. Training Guide Cash and Treasury Training Exercises Step Action 24. Enter the desired information into the Company field. Enter "XXCOMP". 25. Press [Tab]. 26. Let's enter a couple other Exposure Types that were defined earlier. Enter the desired information into the Name field. Enter "ADHOC". 27. Press [Tab]. 28. Click the GL Account object. 29. Enter the desired information into the Company field. Enter "XXCOMP". 30. Press [Tab]. 31. Enter the desired information into the Name field. Enter "REPEAT". 32. Press [Tab]. 33. Click the GL Account button. 34. Click the Save button. 35. Click the Close Window button. 36. Now, we're finished with the set up. Let's enter a new wire / miscellaneous cash flow. Enter the desired information into the Company field. Enter "XXCOMP". 37. Press [Tab]. 38. Enter the desired information into the Exposure Type field. Enter "XXWIRE". 39. Press [Tab]. 40. Exposures can be Firm or Indicative. You might use Indicative if you are not sure about the actual date or amount but still want to record the cash flow for reporting purposes. You can always adjust the record later with the exact dates or amounts when you know them. Enter the desired information into the Firm/Indicative field. Enter "FIRM". 41. Press [Tab]. 42. Press [Tab]. (again) 43. Enter the desired information into the Action field. Enter "PAY". (You could also record "REC" or cash receipts.) Page 70
  • 74. Training Guide Cash and Treasury Training Exercises Step Action 44. Enter the desired information into the Currency field. Enter "EUR". 45. Press [Tab]. 46. Press [Tab]. (again) 47. Enter the desired information into the Estimate Amount field. Enter "500K". 48. Press [Tab]. 49. Press [Tab]. (again) 50. Press [Tab]. (again) 51. In this case, let's assume the actual payment amount is slightly less than we originally anticipated. Enter the desired information into the Actual Amount field. Enter "498500". 52. Press [Tab]. 53. You may record this payment / receipt simply for positioning or forecasting purposes. Or, if you select "Treasury to Settle", this cash flow will appear in Oracle Treasury's settlement queue for processing the actual payment with your bank. Click the Treasury to Settle option. 54. Click in the Counterparty field. 55. Enter the desired information into the Counterparty field. Enter "DB". 56. Press [Tab]. 57. [ ] represents up to 15 user defined fields, including the ability to enforce validations and dependencies. The user defined fields are only set up to be active under certain circumstances right now, which is not the case for XXWIRE's. That's why nothing happens when clicking this field right now. Click in the [ ] field. 58. Let's change the Exposure Type a couple times to REPEAT and ADHOC in order to see the impact on the user defined fields. Click in the Exposure Type field. 59. Enter the desired information into the Exposure Type field. Enter "REPEAT". 60. Click in the [ ] field. 61. Now, we see a list of values since the user defined fields were set up to be dependent Page 71
  • 75. Training Guide Cash and Treasury Training Exercises Step Action on the Exposure Type field. Click the button. 62. Click the Control Disb Funding Wire list item. 63. Click the OK button. or Press [O]. 64. Click the OK button. 65. Enter the desired information into the Exposure Type field. Enter "ADHOC". 66. Click in the [ ] field. 67. Now, a totally different set of fields appear -- both required and optional, free form entry and validated against other database tables. Enter the desired information into the Payee Name REQUIRED field. Enter "John Doe". 68. This was for illustration purposes only, we will go back to the original XXWIRE entry. Click the Cancel button. 69. Enter the desired information into the Exposure Type field. Enter "XXWIRE". 70. Click the Save button. 71. Note: We just completed set up and manually entering a single wire, miscellaneous cash flow, or financial exposure. There are two other methods for entering these types of transactions that are more automated. First, there is an open interface, so you can feed transaction data into the system electronically from another source -- totally eliminating the need to key this information into Oracle Treasury. Second, the Quick Input button below allows you to enter multiple transactions at the same time. For instance, this can be helpful if you want to forecast future payroll payments every 15 days. 72. End of Procedure. Page 72
  • 76. Training Guide Cash and Treasury Training Exercises Issue Bonds as Debt Procedure In this exercise, we will issue new long term debt in the form of Fixed Income securities or Bonds. Step Action 1. From the Treasury, Cash and Risk Management Superuser Responsibility, open the Setup -> Deals -> Bond Issues menu navigator item. Double-click the Bond Issues list item. Page 73
  • 77. Training Guide Cash and Treasury Training Exercises Step Action 2. Enter the desired information into the Issue Code field. Enter "XXBOND". ("XX" represents your terminal number) 3. Press [Tab]. 4. Enter the desired information into the Bond Description field. Enter "XX Bond July 2011 at 7%". 5. Press [Tab]. 6. Click the Authorized option. 7. Press [Tab]. 8. Since you are issuing this bond as debt (to raise funds for your operations or for a project, building, etc), your company should be selected as the Issuer. If you were creating a bond to purchase as an investment, an external counterparty would be selected here. Enter the desired information into the Issuer Code field. Enter "XXCOMP". 9. Press [Tab]. 10. Press [Tab]. (again) 11. Enter the desired information into the Currency field. Enter "USD". 12. Press [Tab]. 13. Let's use a Product Type that has already been defined. Typical configurations might include Product Types for Corporate or Government Bonds, Agencies, etc. Remember Product Types allow you to filter or aggregate information for reporting as well as to define unique accounting rules. Enter the desired information into the Product Type field. Enter "CORP". 14. Press [Tab]. 15. Enter the desired information into the Start Date field. Enter "0". The system will interpret "0" as Today's date. 16. Press [Tab]. 17. Press [Tab]. (again) 18. Let's issue a five year bond with semi-annual coupon payments. Enter the desired information into the Maturity Date field. Enter "5Y". 19. Press [Tab]. 20. This parameter defines how many significant digits are used during calculations of price and yield, which can have an impact on the final results (and sometimes your Page 74
  • 78. Training Guide Cash and Treasury Training Exercises Step Action ability to exactly match your broker's calculations). Click in the Calculation Precision field. 21. Enter the desired information into the Calculation Precision field. Enter "11". 22. Press [Tab]. 23. Enter the desired information into the Price Display Accuracy field. Enter "6". 24. Click in the Yield Display Accuracy field. 25. Enter the desired information into the Yield Display Accuracy field. Enter "6". 26. Click the Coupon Details tab. 27. Standard bond coupon types are supported by Oracle Treasury. Click the Coupon Type button. 28. Compound and Zero coupons as well as Fixed and Floating interest are supported. "Regular" simply means you are dividing the annual interest by the number of coupons whereas "Irregular" is typically used in combination with an Actual Day Count Basis and will count the number of days in each coupon period for the allocation (Eg, 181 vs 184). Click the Fixed-Regular list item. 29. Press [Tab]. 30. Click the Coupon Frequency button. 31. Let's assume that we are paying interest every 6 months. Click the Semi Annual list item. 32. Press [Tab]. 33. Press [Tab]. (again) 34. Click the Payment Due Dates Business Day Convention button. 35. Standard Business Day Conventions are also supported and determine how the system handles interest payment dates that might fall on a weekend or holiday. In this case, we will assume the actual interest payments are deferred to the next good business day. Click the Following list item. Page 75
  • 79. Training Guide Cash and Treasury Training Exercises Step Action 36. Press [Tab]. 37. First and Last Coupon Dates will be defaulted by the system, but they allow you to create long or "stub" coupon periods at the beginning or end of your bond, if needed. Press [Tab]. 38. Press [Tab]. 39. Enter the desired information into the Rate field. Enter "7". 40. Click the Additional Details tab. 41. Bonds can be tied to market rate references defined in the system for revaluation purposes. Enter the desired information into the Rate Reference field. Enter "2011 BOND". 42. Press [Tab]. 43. Press [Tab]. (again) 44. Click the Pricing Model button. 45. Click the Market list item. For revaluation purposes. 46. Press [Tab]. 47. Enter the desired information into the Market Data Set field. Enter "DEFAULT". 48. Let's assume that our bond issue may be "called" in 4 years before the final maturity. This feature might be used if interest rates trend downward between now and then or we otherwise have cash on hand to pay off the debt. Click the Callable Bond option. 49. Click the OK button. 50. Click the Save button. 51. Click the Call Details tab. 52. Click in the Call Date field. 53. Enter the desired information into the Call Date field. Enter "4Y". 54. Click in the Price field. Page 76
  • 80. Training Guide Cash and Treasury Training Exercises Step Action 55. Enter the desired information into the Price field. Enter "101". 56. Click the Save button. 57. Click the Close Window button. 58. Now, let's complete the transaction by capturing the remaining details. From the Treasury, Cash and Risk Management Superuser Responsibility, open the Money Market Transactions -> Negotiable Instruments -> Fixed Income Securities menu navigator item. Double-click the Fixed Income Securities list item. 59. Press [Tab]. 60. Press [Tab]. (again) 61. Enter the desired information into the Company field. Enter "XXCOMP". ("XX" represents your terminal number) 62. Press [Tab]. 63. Enter the desired information into the Counterparty field. Enter "XXBROK". 64. Click in the Deal Subtype field. 65. Remember, we are issuing debt to raise funds in this exercise... Enter the desired information into the Deal Subtype field. Enter "ISSUE". 66. Press [Tab]. 67. Enter the desired information into the Issue Code field. Enter "XXBOND". 68. Press [Tab]. 69. Click in the Face Value field. 70. Enter the desired information into the Face Value field. Enter "20M". 71. Press [Tab]. 72. Press [Tab]. (again) 73. Let's enter price. The system will calculate the yield accordingly. It is also possible to enter yield and have the system calculate price, if that is how your brokers quote bonds to you. Enter the desired information into the Clean Price field. Enter "99.75". Page 77
  • 81. Training Guide Cash and Treasury Training Exercises Step Action 74. Press [Tab]. 75. Click the Interest Details tab. 76. Click the Save button. 77. Click the Coupon Summary tab. 78. All the future coupon payments are now stored in the system for settlement, accrual, journal, and reporting purposes. Notice how some of the coupon maturity dates fall on weekends... Click the scrollbar. 79. ...based on the Business Day Convention, the Due Date for those cash flows are adjusted to be paid on the Following good business day. Click the Close Window button. 80. End of Procedure. Invest Wholesale Term Money Procedure In this exercise, we will invest extra cash using wholesale term money. The investment will be floating rate and will have a structured repayment schedule. Page 78
  • 82. Training Guide Cash and Treasury Training Exercises Step Action 1. From the Treasury, Cash and Risk Management Superuser Responsibility, open the Money Market Transactions -> Wholesale Term Money menu navigator item. Double-click the Wholesale Term Money list item. 2. Press [Tab]. 3. Enter the desired information into the Deal Date field. Enter "-6M". Let's back date this deal as if it started 6 months ago... 4. Press [Tab]. 5. Press [Tab]. (again) 6. Enter the desired information into the Company field. Enter "XXCOMP". ("XX" represents your terminal number) 7. Enter the desired information into the Counterparty field. Enter "XXBANK". 8. Click in the Deal Subtype field. 9. We are assuming that we had extra cash to invest when we made this deal 6 months ago. If we needed cash, we would have borrowed money from XXBANK and the Subtype would be "FUND". Enter the desired information into the Deal Subtype field. Enter "INVEST". Page 79
  • 83. Training Guide Cash and Treasury Training Exercises Step Action 10. Press [Tab]. 11. Let's use one of the Product Types already set up in the system, STRL or Structured Loan / Investment. Enter the desired information into the Product Type field. Enter "STRL". 12. Press [Tab]. 13. Enter the desired information into the Currency field. Enter "EUR". 14. Press [Tab]. 15. Enter the desired information into the Principal Amount field. Enter "10M". 16. Press [Tab]. 17. Press [Tab]. (again) 18. Click the Day Count Basis button. 19. Click the Actual / 365 list item. 20. Enter the desired information into the Start Date field. Enter "-6M". 21. Press [Tab]. 22. Let's assume this was a 5 year investment, so the maturity date would be an additional 54 months from today, or 11-Jan-2011. Enter the desired information into the Maturity Date field. Enter "54M". 23. Press [Tab]. 24. Press [Tab]. (again) 25. This is a floating rate investment, so we'll tie it to a reference benchmark rate in the market. Press [Tab]. 26. This interest rate is just the initial rate. As the benchmark floats up or down and any time a new coupon is reset, the system will assign a new interest rate and recalculate the interest amount accordingly. Enter the desired information into the Interest Rate field. Enter "6.5". 27. Click in the Benchmark Rate field. 28. Let's tie this floating rate investment to the 3 Month Libor rate plus a margin of 50 basis points, or .5%. Enter the desired information into the Benchmark Rate field. Enter "3M LIBOR". Page 80
  • 84. Training Guide Cash and Treasury Training Exercises Step Action 29. Press [Tab]. 30. Enter the desired information into the Margin field. Enter "50". 31. Click the Interest Due On Dates button. 32. Click the Following list item. 33. Click the Save button. 34. In this example, the system is set up to track certain investment limits. We can accept these warnings even though there are some violations. Oracle Workflow Alerts are embedded and may automatically notifiy our manager(s) of the breach. Click the Accept button. or Press [A]. 35. The outstanding balance and all the various coupon dates, rates, and amounts are displayed for your reference. Click the scrollbar. 36. Future coupon amounts are estimated using the initial 6.5% and will show up in cash positions and forecasts as well as other reports. Take note of the interest amount for the July - Aug 2006 coupon, which is 55,205. In a moment, we will reset that rate and the interest amount will be recalculated automatically. Click the Close Window object. 37. Click the Close Window object. 38. From the Treasury, Cash and Risk Management Superuser Responsibility, open the Rates -> Current System Rates menu navigator item. Double-click the Current System Rates list item. 39. Market Data like interest rates, FX rates, bond and stock prices, and volatilities may be loaded into Oracle Treasury automatically from rate providers like Reuters or Bloomberg. In this case, let's manually update the 3 Month Libor rate for today (11- Jul-06) and see how that can be used to adjust the floating rate investment we just entered. First, let's search for the 3M LIBOR rate code using the F11 function key. Press [F11]. 40. Enter the desired information into the Ref Code field. Enter "3M LIBOR". 41. Press [Ctrl+F11]. 42. Click the scrollbar. Page 81
  • 85. Training Guide Cash and Treasury Training Exercises Step Action 43. Let's update the 3M LIBOR rate with a significant increase, say from 4.46 to 8%. Enter the desired information into the Bid Price field. Enter "8". 44. Enter the desired information into the Ask Price field. Enter "8". 45. Click the Save button. 46. Click the scrollbar. 47. Notice the new 3M LIBOR rate is set at 8% for 11-Jul-2006. Click the Close Window button. 48. Click the View menu. or Press [V]. 49. Click the Requests menu. or Press [R]. 50. Click the Submit a New Request... button. or Press [N]. 51. Click the OK button. 52. Enter the desired information into the Name field. Enter "%Bench%". 53. Press [Tab]. 54. Let's enter specific parameters for this program to run today. Keep in mind, this program (along with any others) can be scheduled to run automatically at pre-defined intervals and dates / times. Click in the Company List Values field. 55. Enter the desired information into the Company List Values field. Enter "XXCOMP". 56. Click the OK button. or Press [O]. 57. Based on the parameters we entered, this "Reset Floating (Benchmarked) Rates" Page 82
  • 86. Training Guide Cash and Treasury Training Exercises Step Action program will find all floating rate deals for XXCOMP that have a reset date as of today, reset those interest rates, and recalculate the associated interest amounts. Click the Submit button. 58. From the Treasury, Cash and Risk Management Superuser Responsibility, open the Money Market Transactions -> Wholesale Term Money menu navigator item once again. Double-click the Wholesale Term Money list item. 59. Press [Ctrl+F11]. 60. Click the Transaction Details button. 61. Click in the Rate Fixing Date field. For the coupon period starting on 11-Jul-2006. 62. Click the scrollbar. 63. Notice that the interest rate is now updated to 8.5% (the 3M LIBOR rate of 8% plus the 50 basis point spread). Similarly, the interest amounts are updated going forward, too. Click in the Interest Rate field. 64. Click the Close Window button. 65. In this exercise, we will cover one last feature within the Wholesale Term Money deal type. Rather than having a balloon maturity where all the principal is repaid at maturity, let's review how we can adjust the outstanding principal annually throughout the 5 year period. Click the Principal Adjustment button. 66. Enter the desired information into the Adjustment Amount field. Enter "1M". 67. Press [Tab]. 68. Click the Multiple option. 69. Press [Tab]. 70. Enter the desired information into the Effective field. Enter "0". 71. Press [Tab]. 72. Click the Frequency button. Page 83
  • 87. Training Guide Cash and Treasury Training Exercises Step Action 73. Click the Semi Annual list item. 74. Click the Review Schedule button. 75. In this example, we made multiple principal adjustments based on a scheduled frequency. We could even modify the adjustments in this window before saving the records to the deal -- changing amounts, making some increases instead of decreases, etc. It is also possible to make single principal adjustments on an ad hoc basis during the life of the deal. Click the Save button. or Press [S]. 76. Click the OK button. or Press [O]. 77. Notice now, the deal has semi-annual principal reductions (DECRSE) that will affect the running outstanding balance of the deal as well as the calculated interest amounts for those adjusted coupon periods. Click the scrollbar. 78. Click the Close Window button. 79. Click the Close Window button. 80. End of Procedure. Page 84
  • 88. Training Guide Cash and Treasury Training Exercises Enter Intercompany Funding Procedure In this exercise, we will set up an internal counterparty, or subsidiary, and enter intercompany funding transactions often called in house banking. Step Action 1. From the Treasury, Cash and Risk Management Superuser Responsibility, open the Setup -> System -> Counterparty Profiles menu navigator item. Page 85
  • 89. Training Guide Cash and Treasury Training Exercises Step Action Double-click the Counterparty Profiles list item. 2. Let's define a subsidiary for intercompany funding activity, or in house banking. Note: You may also track these kinds of relationships between two companies defined in Oracle Treasury, which provides the added functionality of automatically creating mirrored deals (from both companies' perspective) as well as allowing you to automatically create accounting entries onto both sets of books. Enter the desired information into the Party Code field. Enter "XXSUB1". 3. Press [Tab]. 4. Enter the desired information into the Full Name field. Enter "XX Subsidiary 1". 5. Press [Tab]. 6. Press [Tab]. (again) 7. Enter the desired information into the Short Name field. Enter "XXSUB1". 8. Press [Tab]. 9. Enter the desired information into the Country field. Enter "United States". 10. Click in the Cross Reference field. 11. To make this Counterparty an "internal counterparty" or subsidiary, you need to link it back to your Company. Enter the desired information into the Cross Reference field. Enter "XXCOMP". 12. Click the Save button. 13. Click the Settle Account Detail button. 14. Enter the desired information into the Account Number field. Enter "XX100- 359435". This can represent an actual bank account if the In House Banking activity ties to physical cash flows, or it can be a dummy (or internal) bank account only. 15. Press [Tab]. 16. Enter the desired information into the Currency field. Enter "USD". 17. Press [Tab]. Page 86
  • 90. Training Guide Cash and Treasury Training Exercises Step Action 18. Click the Default Account option. 19. Press [Tab]. 20. Press [Tab]. (again) 21. Enter the desired information into the Account Name field. Enter "XX Sub USD A/C". 22. Click in the Bank Code field. 23. Enter the desired information into the Bank Code field. Enter "XXBANK". 24. Click in the Address field. 25. Enter the desired information into the Address field. Enter "100 Wallstreet". 26. Press [Tab]. 27. Enter the desired information into the Location field. Enter "New York City, NY". 28. Click the Save button. 29. Click the Close Window button. 30. From the Treasury, Cash and Risk Management Superuser Responsibility, open the Money Market Transactions -> Intercompany Funding menu navigator item. Double-click the Intercompany Funding list item. 31. In this exercise, we will manually enter some new intercompany funding transactions. However, these transactions can be created automatically also, either through Cash Pooling functionality that sweeps funds across Companies or via one of our many Open Interfaces that allow feeding transaction data electronically from other sources. Enter the desired information into the Company field. Enter "XXCOMP". 32. Press [Tab]. 33. Enter the desired information into the Intercompany Party field. Enter "XXSUB1". 34. Press [Tab]. 35. Press [Tab]. (again) 36. Enter the desired information into the Transfer Date field. Enter "-2W". Page 87
  • 91. Training Guide Cash and Treasury Training Exercises Step Action System will interpret -2W as two weeks before today's date, in this case 28- Jun-2006. 37. Click in the Action field. 38. Remember that the Action, Principal Adjustment, and Balance are always shown from the perspective of the Company. So, to REC means the XXCOMP is receiving money from the subsidiary. To state that another way, the subsidiary is paying the parent. The parent will have a negative outstanding loan balance with the sub because the parent owes money back. Enter the desired information into the Action field. Enter "REC". 39. Press [Tab]. 40. Enter the desired information into the Principal Adjust field. Enter "500K". 41. Press [Tab]. 42. Press [Tab]. (again) 43. You can manually enter interest rates on each transaction, or more likely, you will establish an interest rate structure for your in house banking relationships. The interest rates will default if that structure is defined. Click the OK button. 44. Let's quickly define an interest rate structure for this relationship. (It is also possible to set more global structures, if needed.) Click the Specific Interest button. 45. Enter the desired information into the Effective Date field. Enter "-1Y". 46. Press [Tab]. 47. Press [Tab]. (again) 48. Enter the desired information into the Account Balance Low field. Enter "- 999999999". Make sure you enter a <negative> balance amount. 49. Press [Tab]. 50. Enter the desired information into the Account Balance High field. Enter "0". 51. Press [Tab]. 52. The parent will pay this subsidiary 3.5% on the sub's invested balances. Page 88
  • 92. Training Guide Cash and Treasury Training Exercises Step Action Enter the desired information into the Interest Rate field. Enter "3.5". 53. Press [Tab]. 54. Enter the desired information into the Effective Date field. Enter "-1Y". 55. Press [Tab]. 56. Press [Tab]. (again) 57. Enter the desired information into the Account Balance Low field. Enter "0.01". 58. Press [Tab]. 59. Enter the desired information into the Account Balance High field. Enter "999999999". 60. Press [Tab]. 61. ...and the parent will charge the sub 5% for any outstanding loan balances. It is also possible to create multiple tiers with different interest rates in each range. Enter the desired information into the Interest Rate field. Enter "5". 62. Click the Save button. 63. Click the Close Window button. 64. Click in the Principal Adjust field. 65. Re-enter the Principal Adjustment amount now that an Interest Rate structure is defined. Enter the desired information into the Principal Adjust field. Enter "500000". 66. Press [Tab]. 67. Notice that 3.5% defaulted based on the running balance. Now, let's finish entering this particular transaction. Click the Company Details tab. 68. Press [Tab]. 69. Press [Tab]. (again) 70. Once you save the very first intercompany funding transaction, these required values for Portfolio, Product Type, and Pricing Model will default going forward. Enter the desired information into the Product Type field. Enter "N/A". Page 89
  • 93. Training Guide Cash and Treasury Training Exercises Step Action 71. Press [Tab]. 72. Click the Save button. 73. If you set up your system to track Limits and if this deal breaches any of them, you will see this type of message. Click the Accept button. or Press [A]. 74. Let's enter a couple more transactions in this exercise: one for this same relationship and another between XXCOMP and VISION Companies. Click the New button. 75. Enter the desired information into the Company field. Enter "XXCOMP". 76. Press [Tab]. 77. Enter the desired information into the Intercompany Party field. Enter "XXSUB1". 78. Press [Tab]. 79. Press [Tab]. (again) 80. Enter the desired information into the Transfer Date field. Enter "-7". 81. Press [Tab]. 82. Click in the Action field. 83. Enter the desired information into the Action field. Enter "PAY". 84. Press [Tab]. 85. Enter the desired information into the Principal Adjust field. Enter "2M". 86. Press [Tab]. 87. Press [Tab]. (again) 88. Notice that the interest rate defaulting based on your structure and the running balance. Let's change the Action to REC and see how that affects the balance and interest rate. Click in the Action field. Page 90
  • 94. Training Guide Cash and Treasury Training Exercises Step Action 89. Enter the desired information into the Action field. Enter "REC". 90. Press [Tab]. 91. Click the Save button. 92. Click the Accept button. or Press [A]. 93. ...and, one more transaction to highlight the difference when the second party is set up as a full Company in Oracle Treasury. Click the New button. 94. Enter the desired information into the Company field. Enter "XXCOMP". 95. Press [Tab]. 96. Enter the desired information into the Intercompany Party field. Enter "VISION". 97. Press [Tab]. 98. Notice that the third tab called "Intercompany Party Details" is enabled when both parties are Companies in the system. A mirror deal will be created in this case. Press [Tab]. 99. Enter the desired information into the Transfer Date field. Enter "-7". 100. Press [Tab]. 101. Click in the Action field. 102. Enter the desired information into the Action field. Enter "PAY". 103. Press [Tab]. 104. Enter the desired information into the Principal Adjust field. Enter "3.25M". 105. Press [Tab]. 106. Press [Tab]. (again) 107. Click the Company Details tab. 108. All of these required fields default now for XXCOMP. Page 91
  • 95. Training Guide Cash and Treasury Training Exercises Step Action Click the Intercompany Party Details tab. 109. These required fields are from VISION's perspective and will need to be entered the first time only. Press [Tab]. 110. Enter the desired information into the Portfolio field. Enter "CASH". 111. Press [Tab]. 112. Enter the desired information into the Product Type field. Enter "N/A". 113. Press [Tab]. 114. Click the Save button. 115. Notice the mirrored deal numbers: 28442 and 28443, one being an investment and the other debt. Click the Main Details tab. 116. From XX Company's perspective, there is an outstanding investment of $3.25 million earning 3.5%. Let's look at the other side of the transaction. Press [F11]. 117. Enter the desired information into the Deal Num field. Enter "28443". 118. Press [Ctrl+F11]. 119. From Vision's perspective, this represents debt of $3.25 million. Now, let's take a look at another aspect of intercompany funding, managing the outstanding balances and interest. Click the Deal Management button. or Press [D]. 120. Using this Deal Management Find Window, we can look at the outstanding balances and any interest that has accrued to date. Typically, this is used at month end or quarter end to settle or compound the outstanding interest accruals. Press [Tab]. 121. Enter the desired information into the Company field. Enter "XXCOMP". 122. Click the Find button. or Press [i]. Page 92
  • 96. Training Guide Cash and Treasury Training Exercises Step Action 123. Currently, we only have two in house banking relationships for XXCOMP, but you can manage many relationship within this screen. Click the Interest Management tab. 124. You can Settle or Compound interest for each relationship. Since this is often repetitive in nature, whatever Action you used last time will default for each relationship. Click the Interest Action button. 125. Click the Settle list item. 126. Click the Apply Interest Actions button. or Press [A]. 127. Notice that new transactions are created automatically to track and account for the interest settlements, in this case $2,181.51 is settled. Click the Close Window button. 128. End of Procedure. Enter Foreign Exchange Transaction Procedure In this exercise, we will enter a new foreign exchange forward transaction, buying US dollars and selling Canadian dollars in 12 weeks. Page 93
  • 97. Training Guide Cash and Treasury Training Exercises Step Action 1. From the Treasury, Cash and Risk Management Superuser Responsibility, open the Foreign Exchange Transactions -> Spot / Forwards menu navigator item. Double-click the Spot / Forwards list item. 2. Press [Tab]. 3. Press [Tab]. (again) 4. Enter the desired information into the Company field. Enter "XXCOMP". ("XX" represents your terminal number) 5. Press [Tab]. 6. Enter the desired information into the Counterparty field. Enter "XXBANK". 7. Press [Tab]. 8. Press [Tab]. (again) 9. Let's categorize this particular deal by putting it in our Hedging Portfolio, perhaps along with other derivatives like FX Options, Interest Rate Swaps, etc. Enter the desired information into the Portfolio field. Enter "HEDGE". 10. Press [Tab]. Page 94
  • 98. Training Guide Cash and Treasury Training Exercises Step Action 11. Press [Tab]. (again) 12. Enter the desired information into the Deal Subtype field. Enter "FORWARD". (Spot trades may be indicated here as well.) 13. Press [Tab]. 14. Let's just used the default Product Type that has been set up in the system. If needed, we could define and use other Product Types for reporting and accounting purposes. Press [Tab]. 15. Let's enter a value date of 12 weeks from today's date. Perhaps we have identified a financial exposure at that time. For example, let's assume that we have a large sale in Canadian dollars and expect the customer(s) to pay in 12 weeks. By locking in the USD/CAD exchange rate today, we are able to protect our US Based Company from adverse rate movements, protecting our bottom line and EPS. Enter the desired information into the Value Date field. Enter "12W". 16. Press [Tab]. 17. Press [Tab]. (again) 18. Enter the desired information into the Buy Currency field. Enter "USD". 19. Press [Tab]. 20. Press [Tab]. (again) 21. Enter the desired information into the Sell Currency field. Enter "CAD". 22. Press [Tab]. 23. Notice that once you enter the currency pair, the system defaults a Reference Spot Rate of 1.1385 from the current system rates data (which might be loaded automatically from a rate provider like Reuters or Bloomberg). Enter the desired information into the Sell Amount field. Enter "15M". 24. Press [Tab]. 25. You can either enter the Forward Points or the Transaction Rate itself. The system will triangulate the other values and also calculate the Buy (or Sell) Amount. Enter the desired information into the Forward Points field. Enter "3.25". 26. Press [Tab]. 27. Let's overwrite the Transaction Rate and see how the Forward Points and Buy Amount will be adjusted accordingly... 28. Enter the desired information into the Transaction Rate field. Enter "1.139". Page 95
  • 99. Training Guide Cash and Treasury Training Exercises Step Action 29. Click the Additional Details tab. 30. Click the Save button. 31. Click the Close Window button. 32. End of Procedure. Page 96
  • 100. Training Guide Cash and Treasury Training Exercises Process Transactions Process Settlements Procedure In this exercise, we will configure settlement requirements, enter a new payment, authorize it, and generate a payment file to be transmitted to your paying bank. Step Action 1. From the Treasury, Cash and Risk Management Superuser Responsibility, open the Setup -> Parties -> Company Profiles menu navigator item. Page 97
  • 101. Training Guide Cash and Treasury Training Exercises Step Action Double-click the Company Profiles list item. 2. Click the Settlement Scripts tab. 3. First, let's identify and name the types of payment files we would like to create for this company. Not covered in this exercise, we could also tie the format to an FTP Transmission capability defined in Oracle AP. Click in the Script Name field. 4. Enter the desired information into the Script Name field. Enter "XXSWIFT". 5. Click the Script Type button. 6. The report is a user friendly output typically used as a control document if still initiating payments in another system. "Scripts" are standard industry formats like SWIFT or ANSI X12 820 that would be sent directly to your paying bank to process. Click the EFT Script list item. 7. Click in the Procedure Name field. 8. Click the Procedure Name button. 9. As part of your system implementation, you may also expand this list of out of the box formats to include another layout required by your bank(s). Click the SWT_EFT list item. 10. Click the OK button. 11. Click the scrollbar. 12. Make sure your Settlement Script is authorized for use. Also, notice the field to identify the AP Transmission Code, which would need to be set up separately. By saving this record, this XXSWIFT Settlement Code will now be available to assign to our various paying bank accounts. Click the Save button. 13. Click the Bank Account Details tab. 14. Let's use the Default USD account for our company as an example. Click in the Settlement Script field. 15. Enter the desired information into the Settlement Script field. Enter "XXSWIFT". Page 98
  • 102. Training Guide Cash and Treasury Training Exercises Step Action 16. Click the Save button. 17. Click the Close Window button. 18. From the Treasury, Cash and Risk Management Superuser Responsibility, open the Setup -> Parties -> Counterparty Profiles menu navigator item. Double-click the Counterparty Profiles list item. 19. The SWIFT 100 format requires payee address information in the file. So, in order to successfully create a payment, we need to first update our counterparty with address information as a preliminary set up step. Press [F11]. 20. Enter the desired information into the Party Code field. Enter "XXBROK". 21. Press [Ctrl+F11]. 22. Click in the Swift ID field. 23. Enter the desired information into the Swift ID field. Enter "XXBKRID". 24. Click the Save button. 25. Click the Address Detail button. 26. Press [Tab]. 27. Enter the desired information into the Address Name field. Enter "Main Office". 28. Press [Tab]. 29. Enter the desired information into the Mailing Address 1 field. Enter "200 Wallstreet". 30. Press [Tab]. 31. Enter the desired information into the 2 field. Enter "New York City, NY". 32. Click in the Physical Address 1 field. 33. Enter the desired information into the Physical Address 1 field. Enter "200 Wallstreet". 34. Press [Tab]. 35. Enter the desired information into the 2 field. Enter "New York City, NY". 36. Click the Save button. Page 99
  • 103. Training Guide Cash and Treasury Training Exercises Step Action 37. Click the Close Window button. 38. Click the Close Window button. 39. From the Treasury, Cash and Risk Management Superuser Responsibility, open the Other Deal Items -> Exposure Transactions menu navigator item. Double-click the Exposure Transactions list item. 40. Now, let's create an Exposure Transaction (wire payment) from XXCOMP to XXBROK. Then, we will process the Settlement and create our SWIFT message. Enter the desired information into the Company field. Enter "XXCOMP". 41. Press [Tab]. 42. Enter the desired information into the Exposure Type field. Enter "XXWIRE". 43. Press [Tab]. 44. Enter the desired information into the Firm/Indicative field. Enter "FIRM". 45. Press [Tab]. 46. Press [Tab]. (again) 47. Enter the desired information into the Action field. Enter "PAY". 48. Press [Tab]. 49. Enter the desired information into the Currency field. Enter "USD". 50. Press [Tab]. 51. Press [Tab]. ...using our Default USD account, which includes the XXSWIFT Settlement Script. 52. Enter the desired information into the Estimate Amount field. Enter "425000". 53. Press [Tab]. 54. Enter the desired information into the Estimate Date field. Enter "0". 55. Press [Tab]. 56. Press [Tab]. (again) 57. Since we want to process this payment from Oracle Treasury, click this option. Otherwise, this Exposure Transaction would be used for cash forecasting, positioning, Page 100
  • 104. Training Guide Cash and Treasury Training Exercises Step Action and reporting only. Click the Treasury to Settle option. 58. Click in the Counterparty field. 59. Enter the desired information into the Counterparty field. Enter "XXBROK". 60. Press [Tab]. 61. Click the Save button. 62. Click the Close Window button. 63. From the Treasury, Cash and Risk Management Superuser Responsibility, open the Settlements -> Settlements menu navigator item. Double-click the Settlements list item. 64. We are only interested in Settlements due today. Click the Unauthorized Before Settlement Date option. 65. Click the Payments Only option. 66. This is the $425,000 payment we just entered as an Exposure Transaction. Highlight that row. Click in the Deal Type field. 67. Your Settlements person will drill down into the payment details to review prior to authorizing and releasing the payment. Note, there is a step referred to as Transaction Validation. You may choose to have a system option set to require yet another person Validate (review) Transactions or Deals that are entered before they can even be authorized for payment in this screen. Click the Maintain Settlements button. 68. If your Settlements person is approving a number of transactions at once, they could use the Ctrl+F11 function key combination and toggle through and approve multiple transactions at once. Click the Authorized option. 69. Click the Save button. 70. Click the Close Window button. 71. Click the Authorized option. Page 101
  • 105. Training Guide Cash and Treasury Training Exercises Step Action 72. Click in the Deal Type field. (Highlighting the upper and lower regions of this window will refresh the information with the latest updates and/or allow you to change your query.) 73. Click the Generate Report/Script button. 74. Click in the Script Name field. 75. Enter the desired information into the Script Name field. Enter "XXSWIFT". 76. Click the Submit button. or Press [S]. 77. Click the OK button. 78. Click the Close Window button. 79. Click the View menu. or Press [V]. 80. Click the Requests menu. or Press [R]. 81. Click the Find button. 82. Click the View Output button. Page 102
  • 106. Training Guide Cash and Treasury Training Exercises Step Action 83. This payment instruction is created by the system and may be transmitted to your bank for payment processing. Click the Close Window button. 84. End of Procedure. Process Revaluations / Accruals Procedure Page 103
  • 107. Training Guide Cash and Treasury Training Exercises In this exercise, we will run mark to market deal revaluations and interest accruals for your company's deals. Step Action 1. From the Treasury, Cash and Risk Management Superuser Responsibility, open the Accounting -> Revaluations menu navigator item. Double-click the Revaluations list item. 2. Enter the desired information into the Company field. Enter "XXCOMP". ("XX" represents your terminal number) 3. Press [Tab]. 4. Click the Batch ID button. 5. Since this is the very first time you have processed Revaluations (and your month end accounting), there are no Batch ID's currently defined. Let's back date the Period From Date to the beginning of last month. For the purposes of this recorded exercise, that is 1-JUN-2006. Click in the Period From field. 6. Enter the desired information into the Period From field. Enter "1-JUN-06". Page 104
  • 108. Training Guide Cash and Treasury Training Exercises Step Action 7. Press [Tab]. 8. Enter the desired information into the To field. Enter "30-JUN-06". 9. "Capturing Rates" takes a snapshot of the current market data like FX rates, Interest rates, stock and bond prices, and volatilities. This snapshot will be used by the system to perform the actual mark to market revaluation calculations. Click the Capture Rates button. or Press [C]. 10. Click the scrollbar. 11. Click the Revaluation Details button. or Press [a]. 12. Click the Calculate Revaluations button. 13. Highlight the results regions and query for results by using the Ctrl+F11 function key combination. (Alternatively, you can re-select the Batch ID number) Depending on the number of deals for your Company, the offline program to calculate Revaluations may take a few seconds or minutes to complete. Click in the Deal Type field. 14. Press [Ctrl+F11]. 15. During June 2006, there were only these four items outstanding that required revaluation. There are 3 "current accounts", or CA, which are foreign denominated bank balances requiring currency gain/loss calculations and one wholesale term money investment. Click the scrollbar. 16. After reviewing the results, you can click the Authorize button. That will lock down the results and make this batch available to the next step in the month end accounting process -- Accruals. Click the Authorize button. or Press [A]. 17. Click the Close Window button. 18. Let's create a second Revaluation batch period for our current month. Notice how the system behaves slightly differently now that we already have an original batch defined. Click the Batch ID button. Page 105
  • 109. Training Guide Cash and Treasury Training Exercises Step Action 19. The new Period Start will always default to 1 day after the previous end date. The Period End will default based on your accounting calendar (in this case we are in the middle of the period), but it can be overwritten if needed. Click the OK button. 20. Let's take another snapshot of the latest market data as of 14-JUL-2006 and calculate the latest Revaluation results. Click the Revaluation Details button. 21. Click the Calculate Revaluations button. 22. Click the Calculate Revaluations button. 23. Click in the Deal Type field. 24. Press [Ctrl+F11]. 25. Most of the deals entered during this training started in this July 2006 period, so obviously the number of transactions included in the revaluation results is much higher. Click the scrollbar. 26. Notice the calculations for new Fair Values based on the latest market data in the system... Click the scrollbar. 27. ...as well as the associated realized and unrealized gains/losses. In terms of our Company's functional currency, we have a total unrealized gain of $249,531. These realized and unrealized results are available for automatic accounting entries to Oracle GL. 28. Click the Close Window button. 29. From the Treasury, Cash and Risk Management Superuser Responsibility, open the Accounting -> Accruals menu navigator item. Double-click the Accruals list item. 30. The next step in our month end accounting process is to calculate interest accruals and premium/discount amortizations or accretions. Enter the desired information into the Company field. Enter "XXCOMP". 31. Click in the Batch ID field. Page 106
  • 110. Training Guide Cash and Treasury Training Exercises Step Action 32. Remember, we only authorized the first Revaluation Batch ID, so there is only Batch available to perform Accruals at this point. Click the Batch ID button. 33. Click the Calculate button. 34. After the program to calculate accruals is completed, let's look at the results by activating the region and using the Ctrl+F11 function key combination. Click the First Accrual cell. 35. Press [Ctrl+F11]. 36. The system calculated accrued interest on several of our deals. These "Interest Adjustments" represent earnings or expenses that are available for automatic accounting to be generated and passed to Oracle GL. Click the scrollbar. 37. By Authorizing this batch, we again lock down the results and make them available for the final step in the month end accounting process -- Journals. Click the Authorize button. 38. Click the Close Window button. 39. We just completed Revaluations and Accruals by initiating these processes manually within the screens. It is also possible to run the entire month end accounting cycle via a program. Click the View menu. or Press [V]. 40. Click the Requests menu. 41. Click the Submit a New Request... button. 42. Click the OK button. 43. Enter the desired information into the Name field. Enter "%STREAMLINE%". 44. Press [Tab]. 45. The program is called "Accounting Streamline Processing". You can select to run accounting for one company at a time, or as in this case we'll leave the company field blank and run the program for every company that you can access based on your user Page 107
  • 111. Training Guide Cash and Treasury Training Exercises Step Action security. Click in the Start Process From field. 46. Click the Start Process From list item. 47. You can start the program from any step along the process. In this case, we'll start at the beginning -- Revaluation Rate Capture. Click the OK button. 48. Click the End Process After list item. 49. Although it is possible to run this program all the way through, and including, transferring journals to the GL, it is highly recommended to review the calculated revaluation, accrual, and journal results prior to transfer. Click the End process after journal generation list item. 50. Click the OK button. 51. Click the Cancel button. 52. End of Procedure. Set Up and Process Daily Journals Procedure In this exercise, we will set up and generate accounting entries for your company's deals. Page 108
  • 112. Training Guide Cash and Treasury Training Exercises Step Action 1. From the Treasury, Cash and Risk Management Superuser Responsibility, open the Setup -> System -> Journal Entry Actions menu navigator item. Double-click the Journal Entry Actions list item. 2. First, let's identify a few more GL Accounts that will be used in our accounting structures. Click in the GL Account field. 3. Click the GL Account button. 4. Click the OK button. 5. Enter the desired information into the Department List Values field. Enter "000". 6. Enter the desired information into the Account List Values field. Enter "1110". 7. Click the OK button. 8. Enter the desired information into the Treasury Reference field. Enter "Cash". Page 109
  • 113. Training Guide Cash and Treasury Training Exercises Step Action 9. Press [Tab]. 10. Click the GL Account button. 11. Click the OK button. 12. Enter the desired information into the Department List Values field. Enter "000". 13. Enter the desired information into the Account List Values field. Enter "1130". 14. Click the OK button. 15. Enter the desired information into the Treasury Reference field. Enter "ST Investments". 16. Press [Tab]. 17. Click the GL Account button. 18. Click the OK button. 19. Enter the desired information into the Department List Values field. Enter "000". 20. Enter the desired information into the Account List Values field. Enter "7810". 21. Click the OK button. 22. Enter the desired information into the Treasury Reference field. Enter "Interest Income". 23. Press [Tab]. 24. Click the GL Account button. 25. Click the OK button. 26. Enter the desired information into the Department List Values field. Enter "000". 27. Enter the desired information into the Account List Values field. Enter "1310". 28. Click the OK button. Page 110
  • 114. Training Guide Cash and Treasury Training Exercises Step Action 29. Enter the desired information into the Treasury Reference field. Enter "Interest Receivable". 30. Click the Save button. 31. Now that we have a few more GL Accounts available, let's define a Journal Structure for one of the deal types we entered earlier. Click the Journal Structures tab. 32. Using the F11 function key, let's search for our Short Term Money (ONC) Investment. Press [F11]. 33. Enter the desired information into the Deal Type field. Enter "ONC". 34. Press [Tab]. 35. Enter the desired information into the Deal Subtype field. Enter "INVEST". 36. Press [Tab]. 37. Enter the desired information into the Prod Type field. Enter "CALL". 38. Press [Tab]. 39. Enter the desired information into the Portfolio field. Enter "CASH". 40. Press [Ctrl+F11]. 41. Click in the Date Type field. 42. Click the Date Type button. 43. Each Deal Type will have a different set of relevant Dates and Amounts that may be combined to form journal structures. Once your journal structures are created, all of your Treasury accounting will be totally automated going forward. Also, to make setting up and managing these rules as easy as possible, it is possilbe to copy existing accounting structures. Click the COMENCE - Start Date list item. 44. Click the OK button. 45. Click the Amount Type button. Page 111
  • 115. Training Guide Cash and Treasury Training Exercises Step Action 46. Click the PRINFLW - Principal Amount list item. 47. Click the OK button. 48. Click the Action Code button. 49. Click the INCRSE - Increase Principal list item. 50. Click the OK button. or Press [O]. 51. Click the Debit list item. 52. Press [Tab]. 53. Click the GL Account button. 54. This rule will instruct the system to automatically debit the ST Investment GL Account any time there is a principal increase in a short term money investment in the Cash portfolio and with the product type of Call. Click the ST Investments list item. 55. Click the OK button. 56. Click the New button. 57. Let's create the offsetting credit as well as a few other accounting rules. Enter the desired information into the Date Type field. Enter "COMENCE". 58. Press [Tab]. 59. Enter the desired information into the Amount Type field. Enter "PRINFLW". 60. Press [Tab]. 61. Enter the desired information into the Action Code field. Enter "INCRSE". 62. Rather than identifying a specific GL Account to credit, let's tie the credit side of the entry to the Bank GL. This allows the credit to come from whatever GL Account is assigned to whichever bank account settles the cash flow. Click the Bank GL option. Page 112
  • 116. Training Guide Cash and Treasury Training Exercises Step Action 63. Click the Debit/ Credit button. 64. Click the Credit list item. 65. Click the New button. 66. Enter the desired information into the Date Type field. Enter "ACCRUAL". 67. Press [Tab]. 68. Enter the desired information into the Amount Type field. Enter "INTADJ". 69. Press [Tab]. 70. Enter the desired information into the Action Code field. Enter "POS". 71. Click the Debit/ Credit list. 72. Click the Debit list item. 73. Press [Tab]. 74. Click the GL Account button. 75. Click the Interest Receivable list item. 76. Click the OK button. 77. Click the New button. 78. Enter the desired information into the Date Type field. Enter "ACCRUAL". 79. Press [Tab]. 80. Enter the desired information into the Amount Type field. Enter "INTADJ". 81. Press [Tab]. 82. Enter the desired information into the Action Code field. Enter "POS". 83. Click the Debit/ Credit button. 84. Click the Credit list item. Page 113
  • 117. Training Guide Cash and Treasury Training Exercises Step Action 85. Press [Tab]. 86. Click the GL Account button. 87. Click the Interest Income list item. 88. Click the OK button. 89. Click the New button. 90. Enter the desired information into the Date Type field. Enter "SETTLE". 91. Press [Tab]. 92. Enter the desired information into the Amount Type field. Enter "INTSET". 93. Press [Tab]. 94. Enter the desired information into the Action Code field. Enter "SETTLE". 95. Click the Debit/ Credit button. 96. Click the Debit list item. 97. Click the Bank GL option. 98. Click the New button. 99. Enter the desired information into the Date Type field. Enter "SETTLE". 100. Press [Tab]. 101. Enter the desired information into the Amount Type field. Enter "INTSET". 102. Press [Tab]. 103. Enter the desired information into the Action Code field. Enter "SETTLE". 104. Click the Debit/ Credit button. 105. Click the Credit list item. 106. Press [Tab]. Page 114
  • 118. Training Guide Cash and Treasury Training Exercises Step Action 107. Click the GL Account button. 108. Click the Interest Receivable list item. 109. Click the OK button. 110. Click the Save button. 111. Click the Close Window button. 112. From the Treasury, Cash and Risk Management Superuser Responsibility, open the Setup -> Parties -> Company Profiles menu navigator item. Double-click the Company Profiles list item. 113. Click the Bank Account Details tab. 114. Let's assign the Bank GL Account used in our Journal Structure (or, Company GL Acct) to the bank account that settled our short term money investment in a previous exercise. You may remember that the short term money transaction we entered was settled in our main GBP bank account. Press [F11]. 115. Enter the desired information into the Account Currency field. Enter "GBP". 116. Press [Ctrl+F11]. 117. Click in the Company GL Acct field. 118. Click the Company GL Acct button. 119. Assign the Cash GL Account. Click the OK button. 120. Click the Save button. 121. Click the Close Window button. 122. From the Treasury, Cash and Risk Management Superuser Responsibility, open the Accounting -> Revaluations menu navigator item. Double-click the Revaluations list item. 123. Let's review one of our accounting Batches. Page 115
  • 119. Training Guide Cash and Treasury Training Exercises Step Action Enter the desired information into the Company field. Enter "XXCOMP". 124. Press [Tab]. 125. Click the Batch ID button. 126. Remember that we started to create a new batch through 14-JUL-06, but we did not authorize the Revaluation details or move forward into Accruals or Journals. Click the OK button. 127. Instead of running each process individually, let's use the Streamline Accounting program to automate the entire flow to see how journal entries are created based on the rules we just defined. Click the View menu. or Press [V]. 128. Click the Requests menu. or Press [V]. 129. Click the OK button. 130. Enter the desired information into the Name field. Enter "%STREAMLINE %". 131. Press [Tab]. 132. Let's run this process for your company through 14-JUL-06 (or your previous Batch End Date). Enter the desired information into the Company List Values field. Enter "XXCOMP". 133. Click in the Start Process From field. 134. Click the Start Process From button. 135. Click the OK button. 136. Click the End Process After button. Page 116
  • 120. Training Guide Cash and Treasury Training Exercises Step Action 137. ...ending the process at the generation of journal entries. Click the Daily Journals - Generation list item. 138. Click the OK button. 139. Click the OK button. 140. Click the Submit button. 141. Click the Find button. 142. Click the View Log... button. 143. The log file can be helpful, particularly when running accounting for multiple companies or across multiple periods. Click the Close Window button. 144. From the Treasury, Cash and Risk Management Superuser Responsibility, open the Accounting -> Daily Journals menu navigator item. Double-click the Daily Journals list item. 145. Click the Find button. 146. Let's see what accounting entries were created. Enter the desired information into the Company field. Enter "XXCOMP". 147. Click the Find button. or Press [i]. 148. Notice that most of the entries are for your Short Term Money investment. However, the wire transaction that settled during this period is also included since the accounting structure is based on the GL Account assigned to the Product Type (or Exposure Type). Click the scrollbar. 149. Let's drill down into one of these entries. Click in the Journal Amount field. 150. Click the Maintain / Review Journal Details button. Page 117
  • 121. Training Guide Cash and Treasury Training Exercises Step Action 151. Review the details for this entry. It was generated for a principal increase of a short term money "call" investment in the cash portfolio. Now, use the F4 function key to close the window and end this exercise. Press [F4]. 152. End of Procedure. Page 118
  • 122. Training Guide Cash and Treasury Training Exercises Reporting Review Average Rates Procedure In this exercise, we will review the average investment rates for your company's deals. Page 119
  • 123. Training Guide Cash and Treasury Training Exercises Step Action 1. From the Treasury, Cash and Risk Management Superuser Responsibility, open the View -> Positions -> Average Rates menu navigator item. Double-click the Average Rates list item. 2. Click the Group Type button. 3. Let's start by reviewing the average investment balance and rate of return over the last month. You can also select borrowing or FX rates. Click the Investment list item. 4. Click in the Date field. 5. Enter the desired information into the Date field. Enter "-1M". 6. Press [Tab]. 7. Click in the Company field. 8. Let's also narrow our search so we see only investments with XXCOMP, and let's group the results by Deal Type. Enter the desired information into the Company field. Enter "XXCOMP". 9. Click the Group By : Deal Type option. 10. Click the Find button. 11. Notice the day weighted balances in each investment category, the interest earned during the period, and the cumulative average investment rate over the last month of 6.2835%. By scrolling to the right, you can also review average rates for each investment category. Click the scrollbar. 12. Let's change our search parameters. Click the Find button. 13. This time, we'll review the last 6 months and also view investments across all the companies that we have authority to access. Enter the desired information into the Date field. Enter "-6M". 14. Press [Tab]. 15. Click in the Company field. 16. Press [Backspace]. Page 120
  • 124. Training Guide Cash and Treasury Training Exercises Step Action 17. Click the Group By : Deal Type option. 18. Finally, let's view the rates by our Counterparties rather than by Deal Type. Click the Group By : Cparty option. 19. Click the Find button. or Press [i]. 20. Click the scrollbar. 21. Besides seeing the average rates per Counterparty, you can also drill down to see the specific instruments outstanding during the period. Let's see what makes up the 32 million at Citibank. Click in the Principal field. 22. Click the Deal Details button. or Press [D]. 23. We'll use the F4 function key to close the window. In the live application, feel free to query using different parameters and combinations. Press [F4]. 24. End of Procedure. Set Up and Review Risk Management Position Procedure Page 121
  • 125. Training Guide Cash and Treasury Training Exercises In this exercise, we will create and run a new risk management position report for your company's investments. Step Action 1. From the Treasury, Cash and Risk Management Superuser Responsibility, open the Setup -> Risk Management -> Filters menu navigator item. Double-click the Filters list item. Page 122
  • 126. Training Guide Cash and Treasury Training Exercises Step Action 2. First, let's set up a filter so only XX Company's Investments will be included in this report. Filters can be reused in multiple Risk Management reports, or analyses. Click the Create Filter button. 3. Click in the From field. 4. Enter the desired information into the From field. Enter "XXCOMP". ("XX" represents your terminal number) 5. Click the Deal Attribute list. 6. Click the Company list item. 7. Click the Add Condition button. 8. Click in the Portfolio field. 9. Enter the desired information into the Portfolio field. Enter "XXCOMP". 10. Click the Deal Attribute list. 11. Click the Money Market Instrument Type list item. Page 123
  • 127. Training Guide Cash and Treasury Training Exercises Step Action 12. Click the Add Condition button. 13. Click in the Start Date field. 14. Click the Invest list item. 15. Click the Apply button. 16. Click the Analyses tab. 17. Click the Create Analysis button. 18. You can create different styles of reports. Let's just use a simple Table output in this exercise. Click the Continue button. 19. Click in the Analysis Name field. 20. Enter the desired information into the Analysis Name field. Enter "XX Company Invest". 21. Click in the Calculation Threshold field. 22. The system will only calculate new risk management measures for deals that have no results or results dated more than 1 day ago. If you are getting market data more frequently than once per day, you may want this threshold set lower. Enter the desired information into the Calculation Threshold field. Enter "1". 23. Click the Next button. 24. Click in the Search for Filter field. 25. Enter the desired information into the Search for Filter field. Enter "XXCOMP". 26. Click the Next button. 27. Now, let's identify which deal attributes or Risk Management measures we want to include in this report output. Click the scrollbar. 28. Click the Deal Number list item. 29. Click the Move selected items to other list button. 30. Click the Deal Type list item. Page 124
  • 128. Training Guide Cash and Treasury Training Exercises Step Action 31. Click the Move selected items to other list button. 32. Click the Counterparty list item. 33. Click the Move selected items to other list button. 34. Click the scrollbar. 35. Click the Fair Value list item. 36. Click the Move selected items to other list button. 37. Click the Duration list item. 38. Click the Move selected items to other list button. 39. Click the scrollbar. 40. Click the scrollbar. (again) 41. Click the Maturity Date list item. 42. Click the Move selected items to other list button. Page 125
  • 129. Training Guide Cash and Treasury Training Exercises Step Action 43. Click the scrollbar. Page 126
  • 130. Training Guide Cash and Treasury Training Exercises Step Action 44. Click the Outstanding Amount list item. 45. Click the Move selected items to other list button. 46. Click the scrollbar. 47. Click the scrollbar. (again) 48. Click the scrollbar. (once more) 49. Click the Transaction Interest Rate list item. 50. Click the Move selected items to other list button. 51. Now that we have identified what to display in the report, let's reorder the columns putting Duration and Maturity Date at the end (or ultimately the far right column on the report). Click the Duration list item. 52. Click the Move selected items to bottom of list button. 53. Click the Maturity Date list item. 54. Click the Move selected items to bottom of list button. 55. Click the Show Totals option. 56. Click the Finish button. 57. Let's run the report now and review the output. Click the Yes button. 58. Our report is Processing. Click Go periodically until the Status changes to Completed. Click the Go button. 59. Click the XX Company Invest link. Page 127
  • 131. Training Guide Cash and Treasury Training Exercises Step Action 60. Take a moment to review your new report and some of the key calculations it produced. You can run this on an ad hoc basis like we just did or have it scheduled to run overnight along with other reports or processing. The results of this report will be updated based on the latest deals in Oracle Treasury as well as any new Market Data in the system. Click the Close Window button. 61. End of Procedure. Page 128
  • 132. Training Guide Cash and Treasury Training Exercises Other Product Extensions Page 129