Al-Khorayef

Al-Khorayef SaaS Implementation

Global Design Templet – Oracle Fusion Cash Management

JUN 2020 Version 1.1
Table of Contents
Introduction...........................................................................................................................................4
ERP Cloud: Bank Transaction to Cash Position.......................................................................................5
Standard Business Process Flow........................................................................................................5
Introduction...................................................................................................................................5
Cash Management Roles...............................................................................................................6
Cash Management.........................................................................................................................6
Business Process: Manage Liquidity..............................................................................................7
Manage Cash Positioning & Forecasting....................................................................................7
Manage Cash Positioning and Forecasting Data............................................................................9
Extract Cash Positioning and Forecasting Data..............................................................................9
Transfer Cash Positioning and Forecasting Data............................................................................9
Update Existing Data.....................................................................................................................9
Manage Cash Positioning and Forecasting Reports.......................................................................9
Business Processes: Manage Cash Transactions............................................................................9
Maintain Cash Transactions.......................................................................................................9
Business Processes: Manage Banking..........................................................................................12
Manage Bank Statement.........................................................................................................12
Manage Bank Statements............................................................................................................14
Process Electronic Bank Statements............................................................................................14
Manage Inbound Communications..............................................................................................14
Import Bank Statement and correct the import errors................................................................14
Create and Maintain Manual Bank Statement.............................................................................14
Create Bank Statement................................................................................................................14
Edit Bank Statement....................................................................................................................14
View Bank Statement..................................................................................................................14
Reconcile Bank Statement...........................................................................................................14
Auto reconcile Bank Statement...................................................................................................14
Submit Auto reconciliation process.............................................................................................14
Manage External Cash Transactions............................................................................................14
Manual Reconciliation.................................................................................................................14
Search Available Statement Lines and the Available System Transactions..................................14
Match Statement Lines and System Transactions.......................................................................14
Reconcile Bank Statement Manually...........................................................................................14
Mark Bank Statement Complete..................................................................................................14
Mark Bank Statement Reconciliation Reviewed..........................................................................14
 Submit Bank Statement Report...................................................................................................14
Submit Cash to General Ledger Reconciliation Report................................................................14
Al Khorayef Analysis: Business Impacts...........................................................................................15
Current State overview................................................................................................................15
Future Needs overview................................................................................................................15
Current Business Impacts and ERP Cloud Assessment.................................................................15
Key Future Needs and ERP Cloud Assessment.............................................................................16
Key Design Considerations...............................................................................................................17
Bank Accounts.............................................................................................................................17
Bank Statement Import...............................................................................................................17
Bank Statement Reconciliation Matching Rules..........................................................................17
Cash Positioning & Forecasting Options......................................................................................17
Title of key design consideration.................................................................................................18
Integration Points............................................................................................................................18
Supported integrations................................................................................................................18
Al Khorayef Analysis: Integration Points......................................................................................18
Cloud ERP Cash Management Reporting.........................................................................................19
Open Questions...............................................................................................................................20
 Introduction
The purpose of this document is to:

 Describe the high level features available in Oracle ERP Cloud Financials to support the Bank
Transaction to Cash Position process, as available in ERP Cloud Release 13;

 Provide an overview of the standard ERP Cloud business flows associated with manage cash
positioning and forecasting, manage cash transactions, and manage bank statements.

 Highlight any key design considerations that Al Khorayef should be prepared to assess in
preparation for implementation of ERP Cloud Financials for Cash Management;

 Highlight any material areas where current Al Khorayef operating processes may need to be
challenged in order to align with standard ERP Cloud processes.

The content of this document is based on the standard flows and embedded business processes
within Oracle ERP Cloud Cash Management, as validated in a workshop conducted by Oracle
Consulting Services for Al Khorayef March-2020.

Oracle ERP Cloud is delivered via the underlying Oracle Fusion Applications suite. Oracle Fusion
Applications have been designed around business process best practices and are open-standards-
based business applications. Oracle Fusion Applications have been designed and developed since
2005 and were launched in 2010, providing the added confidence that comes with mature software
applications.

Oracle Fusion Financials Cloud (to support the Bank Transaction to Cash Position) forms part of the
Oracle ERP Cloud solution.
ERP Cloud: Bank Transaction to
Cash Position
Standard Business Process Flow
Introduction
This document covers the Cash Management processes that will be required to be completed by a
user in order to manage liquidity, manage cash transactions and manage banking.

The overall “Bank Transaction to Cash Position” business process flow, represented below, covers
the activities that will be explored within this document.
 Perform cash forecast, a review of automated aggregation of cash flow activities
(disbursements, payroll, collections, investments and borrowing),
 Bank activity validation though periodic interfaces from banks and automatic comparison of
records, automatic adjustment of fees and minor differences,
 Initiate interbank activities for optimizing balances across bank accounts, real-time review of
cash positioning,
 Enable efficient period end processes by Reconciliations reports and automatic updations to
forecast and plans

Diagram Key:
The following standard ERP Cloud business processes pertain to (1) Maintaining Liquidity through
cash forecasting, positioning and triggering adjustments to maintain liquidly levels (2) Manage Cash
transactions through performing automated or manual adjustments, transfers, payments (3)
Manage Banking through enabling bank statement interfacing with banks and performing
automated and manual bank reconciliations, reconciliation with ledger etc .

Cash Management Roles

The table below provides brief description of the system roles in Fusion Cash Management.
Role Description

Perform the cash management transaction

Bank transfer, Ad hoc Payment, Manage Cash
Positioning and Forecasting and Manage Bank
Cash Manager
Statement. Protects and develops the
company's liquid assets maximizing their use
and return to the organization.

Cash Management
Al Khorayef Cash Management Process involves Cash Manager and Treasury Accountant Roles.
Fusion Cash Management has been built on a model of role based dash boards where Role Based
Access Control has been made broadened when security of Fusion Apps is concerned with a clear
distinction on "Who" does "What". A user will be able to perform transactions only as per the job
roles assigned to him.

The generic Treasury & Cash Management process flow is set out below:

Your cash Management processes - Manage liquidity, Manage Cash transactions and manage
banking are elaborated in below sections.
Business Process: Manage Liquidity
The generic Manage Liquidity process flow is set out below:

Manage Cash Positioning & Forecasting

The generic Manage Cash Positioning and Forecasting process flow is set out below:
 NARRATIVE

The Manage Liquidity process starts with Cash Manager performing following actions
- Extracting Cash Positioning and Forecasting Data
- Updating the Existing Cash Positioning and Forecasting Data
- Reviewing the Cash Position and Forecast
- Reviewing Cash Balances
 Cash positioning and forecasting are based upon multidimensional cubes that are specifically
designed to analyze cash projections and other cash management activities.
 The cubes allow the users to align the analysis to the business days and periods defined in
existing accounting and transaction calendars, eliminating unneeded setup.
 The user can easily extend the cubes to include additional dimensions to support any specialized
analysis of cash balances and transactions that company may require.
 Users can also perform on-demand cube updates to ensure the reliability and relevance of cash
information used for inquiry and reporting.
 Smart View reports provide an intuitive, spreadsheet-based view of your cash position and cash
forecast.
 The solution assesses the cash forecast for your legal entities based on bank statement balances
and transactions from Fusion Cash Management, Fusion Payables, Fusion Payroll and Fusion
Receivables.
 The users can also adjust cash projections by creating simple manual inflows or outflows
(Transfer Funds, Ad Hoc Payments) for transactions that are not available in the aforementioned
sources.
 This increased insight into projected excesses or shortfalls in cash holdings leads to improved
planning and balancing of position by triggering cash transfers or payments to maintain liquidity.

PROCESS STEPS

ID Description Role Note

CE.1 Manage Cash Positioning and Forecasting Data Cash Manager
CE.1.1 Extract Cash Positioning and Forecasting Data Cash Manager
CE.1.1.1 Transfer Cash Positioning and Forecasting Data Cash Manager
CE.1.1.2 Update Existing Data Cash Manager
Delete Cash Positioning and Forecasting Data
CE.1.2 Manage Cash Positioning and Forecasting Reports Cash Manager
CE.1.2.1 Review Cash Position and Forecast Cash Manager
- Review Cash Position by Bank Accounts Report
- Review Cash Position by Legal Entities Report
- Review Short Term Cash Forecast Report
CE.1.2.2 Manage Cash Positioning and Forecasting Transactions Cash Manager
Review Transaction Details
CE.1.2.3 Manage Bank Account Transfers Cash Manager
Transfer Funds
CE.1.3 Review Cash Balances Cash Manager
Transfer Funds
Make Ad Hoc Payments
Business Processes: Manage Cash Transactions
The generic Manage Cash Transactions process flow is set out below:

Maintain Cash Transactions

The generic Maintain Cash Transactions process flow is set out below:

NARRATIVE

Cash Manager can perform the following tasks as part of the Maintain Cash Transactions process to
as per the liquidity balancing decision taken in previous process.
The Manage Cash Transactions process involved following actions

- Manage Cash Transactions

 (Bank Account Transfers; Ad Hoc Payments; External Cash Transactions)
- Review Cash Transactions

Bank Account Transfers

 Bank account transfers represent fund transfers between internal bank accounts.
The user can initiate bank account transfers from the Bank Account Transfers page.
 Bank account transfers can be setup through an approval process prior to the processing. It
can be either processed as a payment in fusion payables or as a journal set to Fusion General
Ledger.

Ad Hoc Payments

 Ad hoc Payments represent a payment done to an Ad hoc payee with respect to any
investments decisions. You can initiate bank account transfers from the Ad Hoc Payments
page.
 Ad hoc Payments can be setup through an approval process prior to the processing. It can be
either processed as a payment in fusion payables or as a journal set to Fusion General
Ledger.

External Cash Transactions

These are any other cash inflows and outflows from the bank accounts which are reflecting in bank
statement but not captured in source modules like Fusion payables, Receivables etc.

PROCESS STEPS

ID Description Role Note

CE.2 Manage or Review Cash Transaction Cash Manager
CE.2.1 Create Bank Account Transfer Cash Manager
CE.2.2 Create Ad Hoc Payment Cash Manager
CE.2.3 Approve Payment Request Cash Manager
Approval of payments is based on set approval rules or
approval given by a Cash Manager.
CE.2.3.1 The approver person can perform the below actions for the Cash Manager
Cash Transaction
- Reject
- Approve
- Additional Information Request
CE.2.3.1 Review Cash Transaction the Bank Account Transfers Cash Manager
Or Ad Hoc Payments

Maintain Bank Transfer with Foreign Currency

 NARRATIVE

Cash Manager can perform the following tasks as part of the Maintain Cash Transactions process to
as per the liquidity balancing decision taken in previous process.
The Manage Cash Transactions process involved following actions
Manage Cash Transactions with Foreign Currency different than the ledger currency:

 Bank account transfers represent fund transfers between internal bank accounts.
The user can initiate bank account transfers from the Bank Account Transfers page.
 In order to perform the bank transfer Al Khorayef will use a dummy bank account called
adjustment bank account and the bank currency will be the ledger function currency
 The first step is create a bank transfer transaction from the source bank account to the
adjustment bank account with the foreign currency rate.
 Create bank transfer transaction from the adjustment bank account to the target bank
account with the foreign currency and currency rate.

PROCESS STEPS

ID Description Role Note

CE.3 Manage or Review Cash Transaction Cash Manager
CE.3.1 Create Bank Account Transfer from the source bank account Cash Manager
to the adjustment bank account
CE.3.2 Create Bank Account Transfer from the adjustment bank Cash Manager
account to the target bank account
CE.3.3 Record accounting for cash transaction Cash Manager
Business Processes: Manage Banking
The generic Manage Banking process flow is set out below:

Manage Bank Statement

The generic Manage Bank Statements process flow is set out below:
 NARRATIVE

Cash Manager can perform the Manage Bank Statements process flow which includes below
processes
 Processing Electronic Bank Statements
 Enter Bank Statements
 Auto-Reconciliation
 Manual Reconciliation

Processing Electronic Bank Statements

When Banks send the statements in electronic format (following cloud provisioned formats - BAI2/
SWIFT MT940/ EDIFACT FINSTA/ ISO200022 CAMT053), Cash manager loads the files to cloud and
imports the bank statements for further reconciliation purposes. The files can be pushed to an SFTP
server by Banks so that the banks statement import can be triggered to pick these files for import.

Process consists of the following three phases:

 Fetch phase: The program fetches the bank statement zip file from the SFTP server, unzips it,
and stores the statement file in the database.
 Load phase: The program processes the fetched electronic bank statement and populates
the bank statement interface tables, also known as the staging area.
 Import phase: The loaded bank statement data from the staging area is processed against
functional validations before the data is populated into the bank statements tables.

If the process fails with import errors, correct the errors and rerun the process

Enter Electronic Bank Statements

When Banks send the statements in a paper or in a format not supported, Cash Manager would
manually enter the statement in Bank Statements’ page and takes it through reconciliation process.

Bank Statement Auto-Reconciliation

 Once the bank statements are available in Cash Management, payables and receivables
transactions can be reconciled with the bank statement lines.

 User can use Automatic Reconciliation process to reconcile system transactions with bank
statement lines. Use auto-reconciliation when processing a large volume of bank statements
or wanting to automate the reconciliation process. An exception occurs when the
reconciliation program cannot find a system transaction to match with a particular bank
statement line.

 The exceptions are presented to you in the context of the bank statement line so the
appropriate matching system transaction can be selected and reconciled.

Bank Statement Manual Reconciliation

 Manual bank statement reconciliation involves selecting bank statement lines and system
transactions to be reconciled together.

 During reconciliation if a system transaction has not been cleared the reconciliation process
clears the transaction first, and then reconciles it.
  Oracle Fusion Cash Management supports manual reconciliation for all matching scenarios
(one to one, one to many, many to one, and many to many) and allows you to reconcile
across bank statements from the same bank account.

 Review the Bank Statement Report to verify the balance and transaction information for
bank statements. Review the Cash to General Ledger Reconciliation Report to reconcile bank
balances to general ledger cash balances.

PROCESS STEPS

ID Description Role Note

CE.4 Manage Bank Statements Cash Manager
CE.4.1 Process Electronic Bank Statements Cash Manager
CE.4.1.1 Manage Inbound Communications Cash Manager
CE.4.1.2 Import Bank Statement and correct the import errors Cash Manager
CE.4.2 Create and Maintain Manual Bank Statement Cash Manager
CE.4.2.1 Create Bank Statement Cash Manager
CE.4.2.2 Edit Bank Statement Cash Manager
CE.4.2.3 View Bank Statement Cash Manager
CE.4.3 Reconcile Bank Statement Cash Manager
CE.4.3.1 Auto reconcile Bank Statement Cash Manager
CE.4.3.1.1 Submit Auto reconciliation process Cash Manager
CE.4.3.1.2 Manage External Cash Transactions Cash Manager
CE.4.3.2 Manual Reconciliation Cash Manager
CE.4.3.2.1 Search Available Statement Lines and the Available System Cash Manager
Transactions
CE.4.3.2.2 Match Statement Lines and System Transactions Cash Manager
CE.4.3.2.3 Reconcile Bank Statement Manually Cash Manager
CE.4.3.2.4 Mark Bank Statement Complete Cash Manager
CE.4.3.2.5 Mark Bank Statement Reconciliation Reviewed Cash Manager
CE.4.3.2.6 Submit Bank Statement Report Cash Manager
CE.4.3.2.7 Submit Cash to General Ledger Reconciliation Report Cash Manager
Al Khorayef Analysis: Business Impacts
Al Khorayef have considered the current state of their period close processes and the underlying
systems/IT capabilities that support these processes. During the Period Close workshop, the key
business impacts associated with current processes were reviewed and expanded in the context of
the standard Oracle ERP Cloud Period Close processes and functionality.

Current State overview

Al Khorayef running there day to day business transactions with oracle EBS application infrastructure
enabling them to adapt standard based workflow processes.

Future Needs overview

Al Khorayef currently seeks to adapt standardized business flow enabling them to unify the
processing of all Cash Management business transactions.

Current Business Impacts and ERP Cloud Assessment

Current Issue Business Impact ERP Cloud Assessment

Key Future Needs and ERP Cloud Assessment

Future Need ERP Cloud Assessment

Key Design Considerations
As part of the review of ERP Cloud Cash Management, a number of key design considerations were
highlighted, which should be reviewed in preparation for and as part of the initial stage of an ERP
Cloud Financials (Cash Management) implementation for Al Khorayef .These are outlined below:

Bank Accounts
Bank Accounts belong to a Legal Entity. Bank accounts can be granted access to Receivables,
Payables and payroll based on the bank account usage. Bank Model (Bank, Branch, Bank Accounts)
gives flexibility to process transactions and statements from multiple functional organizations.

Bank Account attributes that need to be associated with Bank accounts – Cash Account, Tolerance
levels, EFT numbers, Account Number Validations etc need to be decided before loading bank
account information.

Bank Statement Import

Bank Statement Import into Cloud is possible when the bank statement is in one of the format -
BAI2/ SWIFT MT940/ EDIFACT FINSTA/ ISO200022 CAMT053. If the statements are not provisioned
in this format, possibility of custom format or manual statement entry needs to be decided based on
the volume of bank statements.

Bank Statement Reconciliation Matching Rules

Automatic Reconciliation Matching rules allow you to determine how to match bank statement
lines and application transactions. Specify the following for each rule:
 Transaction source or sources
 Match type: one to one, one to many, many to one, or many to many
 Group by attributes for bank statement lines or system transactions, depending upon match
type
 Matching Criteria: Includes a list of commonly used matching attributes. You can simply
check the attributes to include in their matching rule.
 Advanced Matching Criteria: Allows you to specify additional matching logic or filtering
conditions that must be true for the bank statement line or lines and transaction or
transactions to be matched successfully.
o Only group by and amount fields should be used for matching if grouping is used.

Cash Positioning & Forecasting Options

Cash positioning is the planning tool to view your daily cash position. Project your cash needs and
evaluate your company liquidity position. The daily cash positions are based on actual cash flows
from data sources such as bank statements and external transactions. The goal of the cash position
is to estimate with an acceptable degree of confidence the projected closing bank account balances.
In doing so, cash forecasting decisions such as investing and borrowing, can be made in a timely
manner.
Title of key design consideration
Please provide a description of the key Solution Design considerations that the customer has flagged
during the workshops.

Integration Points
The following sub-sections consider the integration points (which may be system-to-system
integration points or file-based loads) that are supported by Oracle ERP Cloud Cash Management,
plus any specific integration points relevant to Al Khorayef’s expected operating model.

Supported integrations
Standard integration points are available as File-Based Data Loads (data imports) to enable the
inbound load of cash management-related data into ERP Cloud; these are available as data import
facilities for the following objects:
 Bank Statements
 External (Cash) Transactions

Al Khorayef Analysis: Integration Points

As part of the Cash Management workshop, the following integration points were considered to be
specifically relevant to Al Khorayef’s expected operating model:

 List of key integration points.

Cloud ERP Cash Management Reporting
The following standard reports are provided as part of Oracle ERP Cloud to support Cash
Management processes, delivered via the Oracle Transactional Business Intelligence (OTBI) or
Business Intelligence Publisher (B.I. Publisher) tools.

Report Name Report Description Module

Bank Statement Analysis Displays bank statements used to analyze balances and Cash
Report transaction details. Management

Template used by the Bank Statement Processing program for Cash

Bank Statement ISO
processing ISO20022 formatted bank statements. It cannot be Management
Processing Report
submitted as a standalone report.

Displays balance and transaction information for specific bank Cash

Bank Statement Report
statements. Management

Bank Statement Report Data Data model for the Bank Statement Report. The data model Cash
Model extracts bank statement details. Management

Displays bank statement transactions and general ledger Cash

Cash to General Ledger accounting entries that have not been reconciled and can cause Management
Reconciliation Report discrepancies. Used to reconcile bank balances to general ledger
cash balances.

Data model for the Cash to General Ledger Reconciliation Cash

Cash to General Ledger
Report. The data model extracts bank balance, general ledger Management
Reconciliation Report Data
cash balance, unreconciled bank transactions, and general
Model
ledger accounting entries.

Cash in Transit Report
This report lists, for a specific bank account, all transactions that Cash
have been remitted to the bank but have not been cleared. This Management
report excludes all voided transactions. It also excludes all
reversed transactions which have a reversal date on or prior to
the As of Date.

Description: Lists for a specific bank account, all transactions Cash

Cash in Transit Report Data
Model
that have been remitted to the bank but have not been cleared. Management
This report excludes:
- All voided transactions.
- All reversed transactions which have a reversal date on or
prior to the As of Date.
Open Questions
This section is used to summarise any open questions relating to Cash Management and responses
to these questions when known.

ID Topic Question Status Response

CM-001 Integration Online banking integration In process Pending Al Khorayef decision

solution needed to be
addressed.

CM-002 Bank Charges Calculate Tax in the bank Hold We will arrange meeting with
charge transaction Mr. M.Ammar for this issue

CM-003 Bank Charges Calculate Tax in the bank Hold We will arrange meeting with
charge transaction for point of Mr. M.Ammar for this issue
sales

CM-004 Bank transfer Different Currencies on bank Open IT will check for the
transfer workaround, also open SR
with oracle

CM-005 Loans and The methods for how to Open We will arrange meeting with
interest calculate the interest for loan Mr. Abdelaziz for this issue