1. Oracle Cash Management
Oracle Cash Management is an enterprise cash management solution that helps you
effectively manage and control your cash cycle. It provides comprehensive bank
reconciliation and flexible cash forecasting.
Oracle CM –Business Process
Bank Reconciliation
There are two major process steps you need to follow when reconciling bank
statements:
1. Load Bank Statements: Enter the detailed information from each bank
statement, including bank account information, deposits received by the bank, and
payments cleared.
i. Manual Entry
ii. Load electronic statements that you receive directly from your bank (via Bank Statement Open Interface)
2. Reconcile Bank Statements: Once you have entered detailed bank statement
information into Cash Management, you must reconcile that information with your
system transactions. Cash Management provides two methods of reconciliation:
• Automatic - Bank statement details are automatically matched and reconciled

2. with system transactions by running AutoReconciliation program. This method is ideally suited for bank accounts that
have a high volume of transactions.
• Manual - Manually match bank statement details with system transactions. The method is ideally suited to reconciling
bank accounts that have a small volume of monthly transactions. This method can be used to reconcile any bank
statement details that
could not be reconciled automatically.
Cash Management Setup Checklist
• Currencies
• Exchange Rates
• Organizations
• Sets of Books
• Define your bank accounts, and assign GL accounts.
• Transaction calendar (for cash forecasting)
• Set the Payables Option: Account for Payment. (The options are When Payment is Issued, and When Payment Clears. Select
at least the When Payment Clears option)
• Define system parameters
• Define bank transaction codes.
• Set up the Bank Statement Open Interface.
• Set up the Reconciliation Open Interface.
• Other optional Interfaces, if required.
To set up Oracle Payables or Oracle Receivables for Cash Management Integration:
1. In the Banks and Bank Accounts windows, define each bank account that you will
be reconciling. In the Account Use field, select Internal.
2. In the GL Accounts tab of the Bank Accounts window, enter, for each bank account,
the GL accounts you want to use to account for transactions that you reconcile.
3. Cash
4. Cash Clearing
5. Bank Charges
6. Bank Errors (Payables only)
7. Confirmed Receipts (Receivables only)
8. The accounts you defined for the bank account default to any Payables payment
documents and Receivables payment methods you define. You can override these
default accounts in the Payment Documents window when you define payment
documents for the bank account.
9. For each remittance bank account, assign a remittance account.
To set Cash Management system parameters:
Cash Management Responsibility > Setup > System > System Parameters

3. System Controls TAB has Reconciliation Controls, Signing Authority Approval and Archive/Purge Options
Cash Management Transactions TAB has Exchange rate type options, Bank Account Transfer Authorisation type.
Following setups are done as a part of Bank Account setup:
1) Receivable Activity
2) Float Handling
3) Matching Order option for Payables and Receivables
4) Tolerances Details
5) Interface Code and Interface Matching Criteria
6) Check box for Using Reconciliation Open Interface

4. Bank Setup Overview
Create Bank – Information
This page allows you to search for existing banks, view and update them or create new banks.
Create Bank –Address
You can maintain several addresses for the bank in case, for example, when the bank
has different mailing and physical locations. One of the addresses has to be marked as a
primary or identifying.

5. Create Bank –Contact
You can maintain multiple contacts at the bank.
Create Branch –Information
This page allows you to search for existing bank branches, view and update them or create new bank branches.

6. Create Branch –Address
Create Branch –Contact

7. Create Account –Owner & Use
Select the bank branch to which your bank account belongs and proceed to the bank
account setup.
Create Account –Information

8. Create Account –Controls
Reconciliation Controls. The reconciliation parameters have been moved from
the system level to the bank account level. Now you can have unique reconciliation
parameters for each bank account.
Create Account –Access
In this step you will define in which functional areas – Payables, Payroll, Receivables, and/or Treasury – this bank account
can be used and by which organizations.

9. Create Account –Contact
Reconciling a Functional Currency Payment
You install General Ledger and Payables, and define US dollars (USD) as the functional
currency for your ledger. You use Accrual Basis as your accounting method. You record
gains and losses both at payment issue and at payment clearing. You enter an invoice
for 100 USD, approve, pay, reconcile, and create accounting entries for the invoice and
payment. Payables records the accounting entries in the functional currency.
The following table shows the accounting entries for the functional currency payment.
This example assumes that you create accounting entries in Payables after each activity:
Activity Accounting Entries
Enter invoice for 100 :
USD DR Expense 100 USD
CR AP Liability 100 USD
Pay invoice, taking 5 USD discount DR AP Liability 100 USD:
CR Discount 5 USD
CR Cash Clearing 95 USD
Reconcile payment with bank statement, including bank charges of 2 USD:
DR Cash Clearing 95 USD
DR Bank Charges 2 USD
CR Cash 97 USD

10. Reconciling a Functional Currency Receipt
You install Oracle General Ledger and Oracle Receivables, and define US Dollars as the
functional currency for your ledger. You enter Accrual Basis as your accounting
method. You enter an invoice for 100 US Dollars (USD) and receive a payment from
your customer for 100 USD. You create a receipt for that amount, with a Receipt Class
that has the following options:
Creation Method: Manual
Require Confirmation: No
Remittance Method: No Remittance
Clearance Method: By Matching
When you post the invoice and receipt, Oracle Receivables transfers the accounting
entries to Oracle General Ledger, and the Journal Import function creates a journal
entry in your functional currency.
The following shows the reconciling of a functional currency receipt:
Enter invoice for 100 USD:
DR Accounts Receivable 100 USD
CR Revenue 100 USD
Enter receipt for 100 USD:
DR Remittance account 100 USD
CR Accounts Receivable 100 USD
Reconcile receipt with bank statement, including bank charges of 2 USD:
DR Cash 98 USD
DR Bank Charges 2 USD
CR Remittance account 100 USD
Bank Statement Open Interface
You can load bank statement information into the Bank Statement Open Interface tables
using the Bank Statement Loader program or a custom loader program.
Once you populate the open interface tables, you can run the Bank Statement Import program to
validate and transfer the bank statement information into the Cash Management Bank
Statement tables.
Bank Statement Mapping
Use the Bank Statement Mappings window to map the structure of your bank statement
file to the Bank Statement Open Interface tables. You need to define the mapping for
each unique file structure. The default mapping templates for BAI2, SWIFT940, and
French EDIFACT are provided by Cash Management and cannot be changed.
Reconciliation Open Interface
Using the Reconciliation Open Interface, you can reconcile settlements created in Oracle
Treasury with your bank statements. You can also clear and reconcile payments and
receipts that originate in applications other than Oracle Applications.
Entering Bank Statements
Before you can reconcile transactions against a bank statement, you need to enter the
bank statement information into Oracle Cash Management. You can accomplish this

11. task by doing one of the following:
• Using the Bank Statement Loader program - If your bank provides account statements in a flat file using a defined format
like BAI2 or SWIFT940, you can use the Bank Statement Open Interface
• Using a custom loader program
• Using the automatic bank transmission feature
• Using the XML Gateway
• Manually entering the information
Reviewing Bank Statement Interface Errors
You can use the Bank Statement Interface window to review import validation errors
that resulted when you imported bank statement information from the Bank Statement
Open Interface tables. In addition, you can review the AutoReconciliation Execution
Report that is printed automatically by the Bank Statement Import program.
You can review all import and validation errors for a statement, or you can review only
those errors that occurred for a specific statement line.
If you encounter import errors, you can correct the data one of three ways:
• Use the Bank Statement Interface and Bank Statement Interface Lines window.
• Repair the Bank Statement Open Interface tables manually.
• Repair, reload, and re-import the original bank statement file.
Updating Bank Statements
You can update any bank statement, whether imported or entered manually in Cash
Management.
(In Find Bank Statements window)
Reconciling Bank Statements
Reconciling Bank Statements Automatically
You can use the AutoReconciliation program to automatically reconcile any bank
statement in Oracle Cash Management. There are three versions of the program:
• AutoReconciliation: Use this program to reconcile any bank statement that has
already been entered in Cash Management.
• Bank Statement Import: Use this program to import an electronic bank statement
after loading the bank statement file into the Bank Statement Open Interface tables.
• Bank Statement Import and AutoReconciliation: Use this program to import and
reconcile a bank statement in the same run.
You can run these programs from the Submit Request window, the Reconcile Bank
Statements window, or the Bank Statement Interface window.
You can also import and automatically reconcile a bank statement from the Bank Statement Loader program, by using the
option of Load, Import and AutoReconciliation.
After you run the program, you can review the AutoReconciliation Execution Report to
identify any reconciliation errors that need to be corrected.
After you automatically reconcile a bank statement and correct any reconciliation
errors, you can run the Bank Statement Detail Report or use the View Bank Statements
window to review reconciled and unreconciled statement lines. If lines remained

12. unreconciled, you can:
• Update the bank statement and rerun the AutoReconciliation program.
• Reconcile the statement lines manually.
Once you have reviewed your reconciliation results, you can transfer the accounting
entries to your general ledger from Oracle Payables, Oracle Receivables, and Oracle
Cash Management.
Reconciling Bank Statements Manually
You can use the manual method to reconcile any bank statement,
whether imported or entered manually. In addition, you can create new bank statement
lines as you reconcile transactions, as well as update the reconciliation information for a
previously manually-or automatically-reconciled statement.
When you use manual reconciliation, you reconcile each bank statement line with
available transactions. You can search for Payroll payments, Receivables receipts,
Payables payments, miscellaneous transactions, GL journal entries, open interface
transactions, and statement lines that meet specific criteria, and reconcile the statement
line against them.
As you reconcile a statement manually, you may need to create transactions to account
for differences between the sum of the reconciled transaction and the line amount. For
example, you can create a miscellaneous transaction to account for bank charges or
interest. You can also create Payables payments and Receivables receipts from Cash
Management.
Transferring Bank Reconciliation Transactions to Your General Ledger
You need to transfer the accounting transactions you created during reconciliation for
Payables and Receivables to your general ledger interface tables. You cannot transfer
these transactions directly from Cash Management. Instead, transfer them from
Payables and/or Receivables, depending on the transaction type. For example, use
Receivables to transfer any miscellaneous receipts entries generated during your Cash
Management reconciliation. Then, follow your normal posting procedure.