Financial Services Vault Management System for Central BanksJean-Marc LepainCentral Bank Specialist
Vault Management System• An Oracle Consulting Product• A product build around Oracle Inventory• Stand Alone Application/Integration to Oracle E-Business Suite• The VMS can be customized to meet all Central Banks requirements
Scope of the System• Physical inventory of coins, notes, ingots, etc.• Non physical inventories• Direct posting to the GL• Reconciliation between stocks and accounting values• Purchasing and invoicing• Order processing• Interface with the banking system/Cash Management
Vault Management vs. Inventory• Physical inventory is permanent• Items remain in circulation• Reconciliation of physical stock with GL values• Necessity to keep track of serial numbers• Limited adjustment• High security features 70 to 80% standard functionalities 20 to 30% customization
System Modules Vault Management System PayablesOptional Order Processing Inventory
System Integration Banking System (Cash Management System)General VaultLedger Management System (Oracle Financials ?)
Cash Issuance and Vault Management Process Flows Events Financials Banking System Cash Management Issuance of new notes Cash Issuance Branches and Central Vault Management System CommercialCounting/sorting Banks of old notes Monetary Precious Exhibits Metals Securities, etc.
VMS and Oracle Financials• Full integration using one technology platform• Implementation Wizard• Use of common components – Oracle Financial Analyser – Oracle Business Intelligence – Workflow – Alert
Inventory Structure (1) Inventory Structure Physical Non Physical Notes in circulationGold / Precious Metal Destroyed notesCoinsBank-notes Logical locationMonetary ExhibitsSecuritiesOther valuables
OrganizationOrganization is associated to activities and entities such as: • Printing • Employees • Storing • Set of books • Sorting • Calendar • Dispatching • Cost Centers • Control process • Movement parameters
LocationLocations are associated to functions such as:• Delivery • Sub-inventories• Sorting • accounts• Storage • employees• etc.
Sub-Inventory• by item and item types• by location, physical or logical• by locators• by time period• Cash In-transit Sub-Inventory (for shipping)
Bank-Notes Sub-Inventories• Denomination / Serial numbers• Non Audited / Waiting audit / Audited• Sorted clean / Sorted dirty• Counted audited clean / Counted audited dirty• Mint notes• Time expired• Mutilated notes• Forged notes and counterfeit
Non Monetary Deposits• In the name of the Central Bank• In the name of the State or any Institution (Ex: IMF)• In the name of customers (see scope of the system)
Transaction Set-UpTransactions are managed by the Transaction Manager in which are defined:• Transaction types• Transaction profile options (material transactions, reservation, move transaction [work in process, importation of portable bar code reader, etc.], resource cost transaction, etc.)• Transaction reasons• Control options• Default locator and sub-inventory
Transaction Types• A Transaction Type is the combination of Transaction Source Types (Tags; Receipts; Orders) and a Transaction Action.Transaction Actions: •Receipt into store •Sub-inventory transfer •Issue from store •Cost update •AdjustmentTransaction types:Items received from Mint / Printing House, etcItems received from Branches, Commercial Banks, etc.Items sent to Branches, Commercial Banks, etc.
Tags and Tag Numbers• Tags are associated with any group of items entering the vault such as bulk of notes, boxes of coins, etc.• Tags numbers can be use to track any combination of items such as: – Serial numbers / lots – Location / locators – Item /Locator, etc.• Tag reports, report control features
Inter-Organization Shipping Network (1)The Inter-organization Shipping Network Windows is used to define accounting information and the relationship that exists between shipping and organization such are transporters, CB branches and commercial banks.
Inter-Organization Shipping Network (1)• Inter-company Relation Profiles• Movement zones• Movement statistic parameters• Inter-Organization Transfer Account• Shipping Sub-Inventory for Cash in Transit• Shipping cost management
Interface with the General Ledger• Intermediary set of books or account can be defined in the GL• The VMS can use common flexfield with the GL• Transactions can be posted directly in the GL using Journal Import and Post Journal Process• Reconciliation of physical value with accounting value• Settlement Accounts of commercial banks are debited and credited directly• Invoice from the Mint and the Printing House are automatically processed and debited
Reporting ToolsThe Central Bank can choose from a variety of reporting tools such as:• Application Standard Reports• Oracle Financial Analyzer• Oracle Business Intelligence• Oracle Sale Analyzer
Reporting• Transaction Register• Transaction Historical Summary• Shipping Register• Receipt / Inspection Delivery Reports• Serial Number Transaction Register• Bank Note Reservation Report• Counterfeit Note Report• Adjustment Journal• Statistical Reports for coins/note demand• General Ledger Transfer History
Security Features• Audit trails• Access control and Access Profiles• Limits for locations, locators, organizations, transport, employee, etc.• Approval procedures for adjustment• Alert
AuditingThe system can be audited by: • Organizations / Business Units • Set of books • Locations • Employees • Time intervals / Range of dates • Range of serial numbers • Range of Items types and sub-inventories