CASH MANAGEMENT

- CM is an enterprise cash management solution.

- CM is used to capture cash related activities of organization.
- Cash Manager Role required to be assigned for user to access and process transactions in Cash Management

Step 1:- Assign Roles to User

N: -Navigator-Tools-Security Console-Users-Query User
- Cash Manager

Step 2:- Assign Data Access for Users

- CM work at LEGAL ENTITY
N: -Setup: Financials-Users & Security-All Tasks-Manage Data Access for Users
- Security Context = LEGAL ENTITY

- Bank statements contains two levels of information

1. Header
2. Lines

Banks Statements can be created in 2 ways

1. Manual
2. Import
1. Manual Creation
- Creating bank statements manually in the Fusion application is called a manual Bank Statement Creation.
Step 1:- Create Bank Transaction Codes
- To create bank statement in CM, Transaction codes are mandatory manual or auto reconcile.
N: Navigator-Setup & Maintenance- Setup: Financials-Cash Management & Banking-Manage Bank Statement Transaction Codes
[+]
- Transaction code = P111
/ transfer funds, receiving funds, payments charges all codes we have to create here /
- Description = xxxx
- Transaction Type = Check/Charges/payments
> Save and close
/ Same code use payment and receipts also /

Step 2:- Create Bank Statement

This bank statement reflect on bank statement lines.
/ We don’t have any real statements, we will take system transaction and create new statements for that/
N: Navigator-Cash Management-Bank Statements & Reconciliation Tasks-Bank Statements-Create Bank Statement
- Bank Account = xxxx
- Period start date = xxxx
- Period End date = xxxx
- Statement ID = xxxx
> Balances (tab)
/ If you have opening and closing balance enter /
> Statement Lines (tab)
[+]
> General information
- Booking Date = xxxx / Yesterday date/
- View date = xxxx
- Reconciliation Reference = xxxx / check no /
- Transaction code = P111
- Flow indicator = xxxx
/ flow indicator - We are paying (DEBIT) or customer paying (CREDIT) decide with flow indicator /
- Amount = xxxx
> Ok
 > Save and close
/ If you want create another click CREATE ANOTHER/

/ To create statements through spreadsheet /

N: Cash Management -Bank statement and Reconciliation -Task –> Crete Bank Statement in spreadsheet
/ Or else SWIFT 9490, BI2 Formats those statement load in system, banker should be provide require format, or use ADFdi functionality.

2. Bank Statement Import

- This feature is used to import bank statements into oracle
- Following Bank Statements Format can be uploaded.
1. ISO200022 CAMT053
2. EDIFACT FINSTA
3. BA12
4. SWIFT MT940
- If above formats available you can use this function.

Error Type Description Solution

Insufficient Cash Not maintaining adequate cash reserves, Regularly review cash flow forecasts and adjust
Reserves which can lead to liquidity problems. the cash reserves accordingly.
Inaccurate Cash Errors in projecting future cash flows, Improve forecasting accuracy by considering
Flow Projections leading to budget shortfalls. historical data and current trends.
Delayed Deposits Delayed processing of customer payments Implement more efficient payment collection
and Collections or bank deposits. processes and deposit funds promptly.
Unreconciled Failure to reconcile cash transactions, Conduct regular reconciliations to match cash
Cash leading to discrepancies in financial transactions with accounting records.
Transactions records.
Inefficient Inefficient payment processes causing Streamline payment processes and consider
Payment delays and errors. adopting digital payment solutions.
Processing
Unauthorized Unauthorized or fraudulent transactions Strengthen internal controls to prevent
Transactions affecting cash balances. unauthorized transactions and regularly review
account activity.
Manual Errors Mistakes in data entry or manual Implement double-check procedures and
calculations. automated tools to reduce manual errors.

Reconciliation
-Matching either payments or receipts with Bank Statement lines is called Reconciliation
- It can be done in 2 ways.
1. Manual Reconciliation
2. Auto Reconciliation

1. Manual Reconciliation
Step 1: Reconcile Payment & Receipts
One side bank statement and other side system transaction.
N: Navigator Cash Management-Bank Statements Reconciliation- Tasks-Reconciliation- Manual Reconciliation -Unreconciled Tab- Search
Region- Bank Statement Lines and System Transactions
> Unreconciled (tab)
/ Select bank account /
BANK STATEMENT LINES and SYSTEM TRANSACTION select from same transaction click on RECONCILE

/ If you want check reconcile statements click RECONCILE /

> Reconcile (tab)
/ Search /

Step 2:- Check Payment Document status in AP and account it.

N: -Navigator- Payables- Payments- Tasks- Payments- Manage Payments.
/ search for payments/
- Payment status = Cleared /early it is NEGOTIABLE/
- Reconcile = yes

/ For accounting/
> Actions
 > Post to ledger
> View accounting
> Done

Step 3:- Check Receipt status & account it.

N: -Navigator-Receivables-Account Receivables-Tasks- Receipts-Manage Receipts
Status = Confirmed / Early/
Status = Cleared /Now/

/ For accounting/
> Actions
> Post to ledger
> View accounting
> Done

2. Auto Reconciliation
- Matching either payments or receipts with bank statement lines automatically by running "Auto Reconciliation Program" is called Auto
Reconciliation.
Step 1:- Create Bank Transaction Codes
N: Navigator-Setup & Maintenance- Setup: Financials-Cash Management & Banking-Manage Bank Statement Transaction Codes-
[+]
- Transaction code = P111
- Description = xxxx
- Transaction Type = Check/Charges/payments
> Save and close

Step 2:- Create Reconciliation Matching Rule

- You need to create rules and associate with bank account.
N: Navigator-Setup & Maintenance-Setup: Financials-Cash Management & Banking-All Tasks-Manage Bank Statement Reconciliation
Matching Rules
[+]
- Name = Matching rule
- Transaction Source = xxxx
/ From which transaction source AP, AR, PAYROLL, EXTERNAL, JOURNAL /
> Matching Type
- Matching type = one to one
> Matching Criteria
[-] Amount
[-] Reconciliation Reference
> Save and close

Step 3:- Create Bank Statement Reconciliation Rule Sets

- One rule or multiple rule still have to create rule set
N: Navigator-Setup & Maintenance-Setup: Financials-Cash Management & Banking-All Tasks-Manage Bank Statement Reconciliation
Rule Sets
[+]
- Name = Rule set
> Reconciliation Rules
[+]
- Matching Rule =Matching rule
> Ok
> Save and close

Step 4:- Assign Bank Statement Reconciliation Rule Sets to Bank Account
- Which rule set applicable to bank
N: Navigator-Setup & Maintenance-Setup: Financials-Cash Management & Banking-All Tasks- Manage Bank Accounts-Query Bank
Account
/ Select and edit /
> Controls (tab)
-Automatic Reconciliation rule set = Rules set
> Save and close

Step 5:- Create Bank Statement

N: Navigator-Cash Management-Bank Statements & Reconciliation- Tasks-Bank Statements-Create Bank Statement
- Bank Account = xxxx
- Period start date = xxxx
- Period End date = xxxx
- Statement ID = xxxx
> Balances (tab)
/ If you have opening and closing balance enter /
> Statement Lines (tab)
[+]
> General information
- Booking Date = xxxx / Yesterday date/
- View date = xxxx
- Reconciliation Reference = xxxx / check no /
 - Transaction code = P111
- Flow indicator = xxxx
- Amount = xxxx
> Ok
> Save and close
/ If you want create another click CREATE ANOTHER/

Step 6:- Run Auto Reconciliation

N: Navigator-Cash Management-Bank Statements & Reconciliation-Tasks-Reconciliation-Submit Auto reconciliation
/ If we run auto, automatically system reconcile with the bank statements/
> Basic Options
- Bank Account = xxxx
- Statement ID = xxxx
> Submit
/ To verify go to manual reconciliation, you don’t find any BANK STATEMENT LINES /

Step 7:- Check Auto Reconciliation Result

N: Navigator-Cash Management-Bank Statements & Reconciliation-Tasks-Bank Statements-Manage Bank Statements
- Statement End date = xxxx
/ expand STATEMENTS /
- Reconciliation Status = complete
> Done

Un-Reconciliation
It is nothing but a canceling the reconciliation
Step 1:- Query Bank Statement line which you want to un-reconcile
N: Navigator-Cash Management-Bank Statements & Reconciliation-Tasks-Reconciliation-Manual Reconciled
> Reconciled (tab)
> Bank statement lines
- Bank account = xxxx
- Statement Id = xxxx
/search/
> Search Results
/ select TRANSACTION SOURCE /
- Click UNRECONCILE

Step 2:- Check un-reconcile result

N: Navigator-Cash Management-Bank Statements & Reconciliation -Tasks-Bank Statements-Manage Bank Statements
- Statement End date = xxxx
/ expand STATEMENTS /
- Reconciliation Status =Un reconcile
> Done

External Cash Transaction

- We have to enter bank charges those are external cash transaction. Manual means we have to enter BANK STATEMENT and SYSTEM also.
- External cash transactions are transactions related to cash activity that haven't been recorded in the applications
E.g.: Bank fee and other charges
- External cash transactions can be created in 3 ways.
1. Manual
2. Generate Cash Transactions from Bank Statement
3. Create External Transactions in Spreadsheet
Step 1:- Create Bank Transaction Codes
N: Navigator-Setup & Maintenance- Setup: Financials-Cash Management & Banking-Manage Bank Statement Transaction Codes
[+]
- Transaction code = P111
- Description = xxxx
- Transaction Type = Check/Charges/payments
> Save and close

Step 2:- Add cash transaction line in bank statement

N: Navigator-Cash Management-Bank Statements & Reconciliation -Tasks-Bank Statement- Manage Bank Statement
/ Select BANK ACCOUT AND STATEMENT ID, select statement and edit /
> Statement Lines
[+]
- Booking Date = xxxx
- Transaction Code = xxxx
- Flow Indicator = xxxx
- Amount = xxx
> Ok
> Save and close

Step 3:- Create external cash transaction

N: Navigator-Cash Management-Bank Statements & Reconciliation -Tasks- External cash transactions -Create Transaction
- Bank Account = xxxx
- Amount = “- Ve” / no flow indicator here /
 - Date = xxxx
- Transaction Type = xxxx
>Accounting
- Offset Account = xxxx / Dummy or any account /
> save and close

Step 4:- Reconcile external transaction with Bank statement

N: Navigator-Cash Management-Bank Statements & Reconciliation -Tasks-Reconciliation- Manual Reconciliation
/ Select bank account /
> Unreconciled (tab)
BANK STATEMENT LINES and SYSTEM TRANSACTION select from same transaction click on RECONCILE

/ If you want check reconcile statements click RECONCILE /

> Reconcile (tab)
/ Search /

Generate Cash Transactions from Bank Statement

/ Additional cash transaction automatically create in system transaction, based on banks statement line/
Step 1:- Create Bank Statement Transaction Creation Rule
N: Navigator-Setup & Maintenance- Setup: Financials-Cash Management & Banking-Show All Tasks-Manage Bank Statement
Transaction Creation Rules
[+]
- Name = xxxx
- Legal Entity = xxxx
> Statement line identification criteria / Based on these fields system identifies TRNSACTION DETAILS /
- Type = FEE
- Transaction code = 1111
> Transaction Details
- Type = Fee
- Business Unit = xxxx
[-] Accounting
- Cash account = xxxx
- Offset account = xxxx
> Save and close

Step 2:- Create Cash Transaction Type Mapping

N: Navigator-Setup & Maintenance- Setup: Financials-Cash Management & Banking-Show: All Tasks- Manage Cash Transaction Type
Mapping
[+]
- Type = DISBURSEMRNT
- Transaction type = FEE / map with FEE /
- Method = Electronic
> Save and close

Step 3:- Assign Bank Statement Transaction Creation Rules to Bank Account
N: Navigator-Setup & Maintenance-Setup: Financials-Cash Management & Banking-All Tasks- Manage Bank Accounts
[EDIT]
> Controls (tab)
> Bank Statement Transaction Creation rules
[+]
- Rule = xxxx
> Save and close

Step 4:- Create external cash transaction bank Statement

N: Navigator-Cash Management-Bank Statements & Reconciliation -Tasks-Bank Statements-Manage Bank Statement
/ Select BANK ACCOUT AND STATEMENT ID, select statement and edit /
> Statement Lines
[+]
- Booking Date = xxxx
- Transaction Code = 1111 / use this further setups /
- Flow Indicator = xxxx
- Amount = xxx
> Ok
> Save and close
/ based on this system automatically create one external transaction, that we will be find in MANAGE EXTERNAL TRANSACTION /
/ Select bank account, search /

Step 5:- Run Generate Cash Transactions

N: Navigator-Cash Management-Bank Statements & Reconciliation -Tasks-Bank Statements-Generate Cash Transactions
> Basic Options
- Banks Accounts = xxxx
- Statement Id = xxxx
> Submit
 Step 6:- Check external cash transaction in system
N: Navigator-Cash Management-Bank Statements & Reconciliation -Tasks-External Cash Transactions- Manage Transaction
/You can find new tarnation. Its system created. System auto reconcile MANAGE TRANSACTION. /

/////
System Perform auto reconciliation
/ verify/
N: - Cash Management – Bank STATEMENT AND Reconciliation - Task – Manage Bank STATEMENT
/ select bank statement /
> Statement Lines
/ You can find reconcile statement /
/ This transaction stay in CM only /

Only external transaction system creates accounting entries

N: - CASH MANAGEMENT – Bank statement and Reconciliation - Task – Create Accounting
> Basic Options
- Sub ledger Application = xxxx
- Ledger = xxxx
- Report style = xxxx
> Submit
N: - GENERAL LEDGER – Journals – Task – Manage Journals
/You find journals with source as CM/
/////

Cash Forecasting
- It is used to estimate cash inflow & outflow of organization
- Inflow –> O2C - S.O -shipping AR invoice –Receipts
- Outflow –> P2P –> Receiving – AP invoices - Payments
Step: - Run Cash Forecasting
N: Navigator-Cash Management-Cash Balances-Tasks- Cash Forecasting- Click on 5day Forecast

Cash Positioning
- It is used to identify daily cash position in each bank accounts
Step: - Create & Run Cash Position Group
N: -Navigator-Cash Management-Cash Balances-Click on Show Filters

Ad HOC PAYMENT
- Instead of creating suppliers In AP, you can create party and make payment. System creates external transaction. Within the CM only.
- Application provides an option to a user’s to initiate Adhoc Payments. Using an Adhoc payment transaction, users can initiate payments
without maintaining payees. User is expected to enter the payee details manually along with the payment details to initiate a payment.
Pre-Requisites
 Transaction access is provided to corporate user.
 Approval rule set up for corporate user to perform the actions.
 Transaction working window is maintained.
 Purpose of Payments are maintained.
 Transaction limits are assigned to user to perform the transaction.

Step 1:-Create party and bank Account

N: - CASH MANAGEMENT – Cash Balances – Task – Create Payee
- Name = xxxx
> Banks Accounts
[+]
- Country = xxx
- Account = xxx
- Currency = xxx
- Account Holder = xxx
- Routing Number = xxx
> Ok
> Save and close

Step 2:-Process AdHOC payments

N: - CASH MANAGEMENT – Cash Balances – Task – Create Ad HOC Payment
- From account = xxxx
- Payee = xxxx
- Payee account = xxxx
- Payment date = xxxx
- Payment amount = xx
- Cash account = xxxx
- Offset account = xxx
[-] settle transaction through payments (AP)
/ Otherwise only in CM.If not PPR will settle/
- Business unit = xxxx
- Payment method = xxxx
- Payment profile = xxxx
> Submit

We don't find directly RECEIPTS in CM. for that we perform remittance.

HOW TO REMIT RECEIPTS?
N: - RECEIVABLES – Accounts Receivables – Task – Create Receipt Remittance Batch
> Batch Information
- Business Unit = xxxx
- Remittance Batch Currency = xxxx
- Remittance Batch date = xxxx
- Accounting date = xxxx
- Receipt Class = xxxx
- Receipt Method = xxxx
- Remittance Bank = xxxx
- Remittance bank branch = xxxx
> Receipts
[+]
/ Search Receipt Method /
/ whit this payment methods process receipts find here, select all receipts to remit, in reality submit to bank for clearing checks. Update as
remitted/
> Apply
> Save and close

N: - RECEIVABLES – Accounts Receivables – Task – Manage Receipt Remittance Batches

/ Find out Batch, select and APPROVE, Process Status is to be COMPLETED APROVAL, Now you can find receipts in Cash management /
/ Bank account functionally own by CM only, they giving permission to AP, AR/

N: - CASH MANAGEMENT – Bank statement and Reconciliation – Manual Reconciliation

Now verify how many payments and receipts reflect in CM
- Bank Account = xxxx / Search /
/ Receipts remitted those reflect in CM /
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N: - CASH MANAGEMENT – Bank statement and Reconciliation - Task – Manage external Transactions
/ select bank account you can find transaction /
/ For this account entries are CM only./
/ Accounting entries for external transactions, what we create/
/if cash account matching it will reconcile. These external transaction is additional feature. /

N: - CASH MANAGEMENT – Bank statement and Reconciliation – Create accounting

> Basic Options
- Sub ledger applications = CM
- Ledger = xxxx
- Process Category = xxxx
> Submit
/ What are external transaction we have those are reconcile, those create accounting entries /