Oracle E-Business Suite: Creating Bank Accounts and Cash Forecasts

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Oracle E-Business Suite 12 Financials Cookbook

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Take the hard work out of your daily interactions with Oracle E-Business Suite financials by using the 50+ recipes from this book and eBook

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by Yemi Onigbode | August 2011 | Enterprise Articles Oracle

Oracle E-Business Suite 12 Financials is a solution that provides out-of-the-box features to meet global financial reporting and tax requirements with one accounting, tax, banking, and payments model, and makes it easy to operate shared services across businesses and regions.

In this article by Yemi Onigbode, author of Oracle E-Business Suite 12 Financials Cookbook, we will cover:

  • Creating bank accounts
  • Creating cash forecasts

 

Oracle E-Business Suite 12 Financials Cookbook

Oracle E-Business Suite 12 Financials Cookbook

Take the hard work out of your daily interactions with E-Business Suite financials by using the 50+ recipes from this cookbook

        Read more about this book      

(For more resources on Oracle, see here.)

Introduction

The liquidity of an organization is managed in Oracle Cash Management; this includes the reconciliation of the cashbook to the bank statements, and forecasting future cash requirements. In this article, we will look at how to create bank accounts and cash forecasts. Cash management integrates with Payables, Receivables, Payroll, Treasury, and General Ledger.

Let's start by looking at the cash management process:

  1. The Bank generates statements.
  2. The statements are sent to the organization electronically or by post.
  3. The Treasury Administrator loads and verifies the bank statement into cash management. The statements can also be manually entered into cash management.
  4. The loaded statements are reconciled to the cash book transactions.
  5. The results are reviewed, and amended if required.
  6. The Treasury Administrator creates the journals for transactions in the General Ledger.

Creating bank accounts

Oracle Cash Management provides us with the functionality to create bank accounts. In this recipe, we will create a bank account for a bank called Shepherd Bank, for one of their branches called Kings Cross branch.

Getting ready

Log in to Oracle E-Business Suite R12 with the username and password assigned to you by the system administrator. If you are working on the Vision demonstration database, you can use OPERATIONS/WELCOME as the USERNAME/PASSWORD.

We also need to create a bank before we can create the bank account. Let's look at how to create a bank and the branch:

  1. Select the Cash Management responsibility.
  2. Navigate to Setup | Banks | Banks.

    (Move the mouse over the image to enlarge it.)

  3. In the Banks tab, click on the Create button.
  4. Select the Create new bank option.
  5. In the Country field, enter United States.
  6. In the Bank Name field, enter Shepherds Bank.
  7. In the Bank Number field, enter JN316.
  8. Click on the Finish button.

Let's create the branch and the address:

(Move the mouse over the image to enlarge it.)

  1. Click the Create Branch icon: The Country and the Bank Name are automatically entered.
  2. Click on the Continue button.

    (Move the mouse over the image to enlarge it.)

  3. In the Branch Name field, enter Kings Cross.
  4. Select ABA as the Branch Type.
  5. Click on the Save and Next button to create the Branch address.

    (Move the mouse over the image to enlarge it.)

  6. In the Branch Address form, click on the create button.
  7. In the Country field, enter United States.
  8. In the Address Line 1 field, enter 4234 Red Eagle Road.
  9. In the City field, enter Sacred Heart.
  10. In the County field, enter Renville.
  11. In the State field, enter MN.
  12. In the Postal Code field, enter 56285.
  13. Ensure that the Status field is Active.
  14. Click on the Apply button.
  15. Click on the Finish button.
Oracle E-Business Suite 12 Financials Cookbook Take the hard work out of your daily interactions with Oracle E-Business Suite financials by using the 50+ recipes from this book and eBook
Published: August 2011
eBook Price: $41.99
Book Price: $69.99
See more
Select your format and quantity:
        Read more about this book      

(For more resources on Oracle, see here.)

How to do it...

Let's create the bank account:

  1. Select the Cash Management responsibility.
  2. Navigate to Setup | Bank Accounts

    (Move the mouse over the image to enlarge it.)

  3. In the Manage Bank Accounts tab, click on the Create button.
  4. In the Country field, enter United States.
  5. In the Bank Name field, enter Shepherds bank.
  6. In the Branch Name field, enter Kings Cross.
  7. Click on the Continue button.
  8. Select Vision Operations for the Bank Account Owner field.
  9. Select Payables and Receivables for the Account Use field and click on the Next button.
  10. In the Account Information form, enter the following information:

    • In the Account Name field, enter Shepherd Account
    • In the Account Number field, enter 95-6891-3074
    • In the Currency field, enter USD
    • Select the Multiple Currencies Allowed option
    • Click on the Save and Next button
  11. In the General Controls form, enter the following information:

    (Move the mouse over the image to enlarge it.)

    • In the Cash and the Cash Clearing fields, enter 01-000-1110-0000-000
    • In the Bank Charges and the Bank Errors fields, enter 01-740-7870-0000-000
    • In the Payables Controls region, select Multiple Currency Payments, Allow Zero Payments, and Pooled Account
    • Enter 10.00 in the Minimum Payment field
    • Enter 1,000,000.00 in the Minimum Outlay field
    • Enter 500,000.00 in the Maximum Payment field
    • Click on the Save and Next button
  12. In the Account Access form, click on the Add Organization Access button.

    (Move the mouse over the image to enlarge it.)

  13. Select Payables and Receivables for the Account Use field.
  14. Select Vision Operations for the Organization field and click on the Continue button.
  15. Click on the Apply button.
  16. Click on the Save and Next button.
  17. Click on the Finish button, we should receive a confirmation that the account has been created.

There's more...

Loading bank statements electronically from the bank will enable us to automate the bank reconciliation process. We need to define the transaction codes that the bank will use to identify the different types of transactions on the statements.

Creating transaction codes

Let's create transaction codes that will be used by the bank:

  1. Select the Cash Management responsibility.
  2. Navigate to Setup | Bank | Bank Transaction Codes.

  3. In the Bank Transaction Codes window, select the 95-6891-3074, Shepherd Account bank account.
  4. In the Type field select Payment.
  5. Enter 100 in the Code field.
  6. Enter Regular Payment in the Description field. The Trans Source of AP Payments is automatically entered.
  7. Select the next line.
  8. In the Type field, select Misc Payment.
  9. Enter 110 in the Code field.
  10. Enter Miscellaneous Payment in the Description field.
  11. Select the next line.
  12. In the Type field select Receipt.
  13. Enter 200 in the Code field.
  14. Enter Regular Receipt in the Description field. The Trans Source of AR Payments is automatically entered.
  15. Select the next line.
  16. In the Type field select Misc Receipt.
  17. Enter 210 in the Code field.
  18. Enter Miscellaneous Receipt in the Description field.
  19. Select the next line.
  20. In the Type field select Rejected.
  21. Enter 300 in the Code field.
  22. Enter Rejected in the Description field.
  23. Select the next line.
  24. In the Type field select Stopped.
  25. Enter 400 in the Code field.
  26. Enter Stopped in the Description field. The Transactions Source of AP Payments is automatically entered.
  27. Select the next line.
  28. In the Type field select NSF.
  29. Enter 500 in the Code field.
  30. Enter Insufficient Funds in the Description field.
  31. Click on the Save icon, to save your work.

Creating cash forecasting

Cash forecasting is a tool that can be used to forecast the inflow and outflow of cash within the organization:

  • Inflows sources: General Ledger, Sales, Order Management, Receivables, Treasury, Projects, and External Sources
  • Outflows sources: General Ledger, Purchases, Payables, Payroll, Projects, Treasury, and External Sources

This can help the organization to plan liquidity requirements, and plan adequately. In this recipe, we will look at how to run cash forecast.

Getting ready

A cash forecast template is required. Let's look at a six month forecast template:

  1. Select the Cash Management responsibility.
  2. Navigate to Cash Forecasting.

    (Move the mouse over the image to enlarge it.)

  3. Select the Forecast Templates tab.
  4. In the Template Name filed, enter Six Month Forecast – VisionOps.
  5. Click on the Go button.
  6. The Forecast Template is displayed, click on the Six Month Forecast – VisionOps link.
  7. The forecast is by GL Periods and Overdue transactions are excluded.
  8. The row definitions are displayed, and this includes rows for AP Invoices, AR Invoices, Purchase Orders, Purchase Requisitions, and Sales Orders.
  9. The columns are also displayed for the six months.

How to do it...

Let's run a cash forecast:

  1. Select the Cash Management responsibility.
  2. Navigate to Cash Forecasting.
  3. Select the Forecast Templates tab.

    (Move the mouse over the image to enlarge it.)

  4. In the Template Name field enter Six Month Forecast – VisionOps.
  5. Click on the Go button.
  6. The Forecast Template is displayed, click on the Run Forecast icon.
  7. In the Forecast Name field, enter YO Six Months Forecast – Nov-10.
  8. In the Calendar Name field, enter Accounting.
  9. In the Forecast Currency and the Source Currency fields enter USD.
  10. In the Start Period field, enter Nov-10.
  11. Select Entered in the Source Currency Type.
  12. Click on the Submit button.
  13. Review the forecast by selecting the link.
  14. The forecast is displayed.

Summary

In this article we took a look at creating bank accounts and cash forecasts.

In the next article we will take a look at entering and reconciling bank statements.


Further resources on this subject:


Oracle E-Business Suite 12 Financials Cookbook Take the hard work out of your daily interactions with Oracle E-Business Suite financials by using the 50+ recipes from this book and eBook
Published: August 2011
eBook Price: $41.99
Book Price: $69.99
See more
Select your format and quantity:

About the Author :


Yemi Onigbode

Yemi has over a decade of experience in ERP systems development and maintenance. He has progressed from the early days of the IBM mainframe-based systems to the present day of web-based distributed systems. He has worked with large multinational consulting firms including Oracle Corporation, Accenture, Deloitte, Fujitsu Consulting, IBM, Sun Microsystems, and CSC.

Yemi is a hybrid techno-functional expert. He is a hands-on Project Manager, Business Architect and Instructor, specialized mainly in Financials, Human Resources, and Supply Chain models. He has assisted a number of businesses to find solutions to complex business issues using various technologies.

Yemi is also a keen believer in self-development and research; he is at par with the current developments in the IT and communications industry. He is currently developing and implementing e-business solutions for large and medium sized companies, fully integrating their business applications with the Internet and providing a totally integrated solution. He has been developing in Java since 1996 and implementing Oracle Applications since 1997.

Yemi is an Oracle Financials Certified Trainer, Sun Certified Instructor, and a Fellow of the Association of Chartered Certified Accountants. He has a Bachelor of Science (Honors) degree in Pure and Applied Mathematics. Yemi is also a technical writer on Accountancy and IT issues, and presents at Accounting and IT seminars. He also motivates and mentors young adults on career management and planning. In his spare time Yemi loves to write and play musical instruments.

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