The document describes a vault management system for central banks that manages physical and non-physical inventories of assets like cash, precious metals, and securities. It integrates with Oracle applications and provides features for inventory, purchasing, order processing, and accounting integration. The system tracks items by organization, location, sub-inventory and includes security, reporting, and auditing capabilities.

1. Financial Services
Vault
Management
System
for
Central Banks
Jean-Marc Lepain
Central Bank Specialist

2. 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

3. 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

4. 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

5. System Modules
Vault Management System
Payables
Optional Order Processing
Inventory

6. System Integration
Banking System
(Cash Management System)
General Vault
Ledger Management
System
(Oracle Financials ?)

7. 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
Commercial
Counting/sorting Banks
of old notes
Monetary
Precious
Exhibits
Metals Securities, etc.

8. VMS and Oracle Financials
• Full integration using one technology
platform
• Implementation Wizard
• Use of common components
– Oracle Financial Analyser
– Oracle Business Intelligence
– Workflow
– Alert

9. Inventory Structure (1)
Inventory Structure
Physical Non Physical
Notes in circulation
Gold / Precious Metal
Destroyed notes
Coins
Bank-notes Logical location
Monetary Exhibits
Securities
Other valuables

10. Inventory Structure (2)
The inventory structure reflect:
• The organization (Vault, Mint, Printing House, HQ,
Branches, Office, Business Units, etc.)
• Locations (Central Vault, Store-room, Branch Vault)
• Locators (Box, Bin, safe, etc.)
• Items an Item types
• Sub-inventory

11. Organization
Organization is associated to activities and entities such as:
• Printing • Employees
• Storing • Set of books
• Sorting • Calendar
• Dispatching • Cost Centers
• Control process
• Movement
parameters

12. Location
Locations are associated to functions such as:
• Delivery • Sub-inventories
• Sorting • accounts
• Storage • employees
• etc.

13. Sub-Inventory
• by item and item types
• by location, physical or logical
• by locators
• by time period
• Cash In-transit Sub-Inventory (for shipping)

14. 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

15. 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)

16. Transaction Set-Up
Transactions 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

17. 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
•Adjustment
Transaction types:
Items received from Mint / Printing House, etc
Items received from Branches, Commercial Banks, etc.
Items sent to Branches, Commercial Banks, etc.

18. 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

19. 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.

20. 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

21. 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

22. Reporting Tools
The Central Bank can choose from a variety
of reporting tools such as:
• Application Standard Reports
• Oracle Financial Analyzer
• Oracle Business Intelligence
• Oracle Sale Analyzer

23. 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

24. Security Features
• Audit trails
• Access control and Access Profiles
• Limits for locations, locators, organizations,
transport, employee, etc.
• Approval procedures for adjustment
• Alert

25. Auditing
The 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