© 2006 KBACE Technologies, Inc. 1 ORACLE R12 –Cash Management

© 2006 KBACE Technologies, Inc. 2  Bank Account Model  Bank Account Balances and Interest Calculations  Bank Account Transfers  Subledger Accounting  Bank Statement Reconciliation  Multi-org Access Control and Security New Features - Oracle Cash Management

© 2006 KBACE Technologies, Inc. 3  Setup, maintenance, and control of all internal bank account information is much easier  a single access point for defining and managing internal bank accounts for Oracle Payables, Oracle Receivables, Oracle Payroll,Oracle Cash Management, and Oracle Treasury.  Bank account access for each application is explicit for internal security and control purposes. Bank Account Model

© 2006 KBACE Technologies, Inc. 4  Each account is associated with a Bank and Bank Branch defined in Oracle’s common Trading Community Architecture (TCA).  A single Legal Entity is granted ownership of each internal bank account.  One or more Organizations are granted usage rights, which provides significant benefits in key areas like reconciliation.  Reconciliation options can now be defined at the bank account level, providing even more flexibility and control of that process. Bank Account Model

© 2006 KBACE Technologies, Inc. 5  Many new bank account balance types are supported for all internal bank accounts including ledger, available, value dated, 1-day float, 2-day float, and projected balances.  Users are able to track closing ledger and available balances as well as month-to-date and year-to-date averages. Bank Account Balances & Interest Calculations

© 2006 KBACE Technologies, Inc. 6  Bank Account Transfer functionality was previously supported only through Oracle Treasury. Now, directly in Oracle Cash Management.  This feature allows users to create these types of cash transfers between internal bank accounts manually or automatically through physical cash pools.  Payment processing and accounting is managed via Oracle Payments and Oracle Subledger Accounting Bank Account Transfers

© 2006 KBACE Technologies, Inc. 7 Subledger Accounting

© 2006 KBACE Technologies, Inc. 8  Bank Transaction Codes can be linked to multiple sources.  Previously each bank transaction code had to be linked to a single source, such as AP. This could create an issue if the bank was using the same transaction code to report back a payment that was initiated from an application other than AP. Bank Statement Reconciliation

© 2006 KBACE Technologies, Inc. 9  Multi-Org Access Control enables companies that have implemented a Shared Services operating model to efficiently process business transactions by allowing them to access, process, and report on data for an unlimited number of operating units within a single applications responsibility. Multi-org Access Control & Security

© 2006 KBACE Technologies, Inc. 10 TCA in R12  New trading entities Banks & Bank Branches Suppliers Legal Entity

© 2006 KBACE Technologies, Inc. 11

© 2006 KBACE Technologies, Inc. 12 TCA in R12: Bank Account Model Bank Bank BranchBank Account Trading Community Architecture (TCA) Cash Management Treasury Payables Receivables Payroll

© 2006 KBACE Technologies, Inc. 13 TCA in R12: Bank Account Model OU A OU B OU C Bank Single Payment Instruction Invoices Payments Sub Ledger Accounting New Payments Module New Bank Module New Bank & Credit Card Features Pay invoices from different OUs with 1 instruction

© 2006 KBACE Technologies, Inc. 14 TCA in R12: Bank Account Model Benefits  Reduce number of access points to manage bank accounts Centralized user interface  Improve visibility and control of bank accounts Multi-org access control  Simplify bank reconciliation Single bank statement can be reconciled across multiple Operating Units  Increase percentage of automatically reconciled transactions Bank account level reconciliation parameters add flexibility

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© 2006 KBACE Technologies, Inc. 16 Internal Bank Accounts In 11i : Internal Banks defined in AP and that is shared by AP/AR/CE, Payroll and Treasury and they are bank accounts often replicated in multiple OU’s In R12: Bank and Branch become part of TCA Parties. Internal Bank Account in Cash Management which is owned by a Legal Entity. Here the Operating units have granted usage rights. Note: Banks and Bank Branches: ce_bank_branches_v or cebv_bank_branches T hese banks and bank branches are shared across internal and external bank accounts Internal bank accounts: ce_bank_accounts Internal Bank accounts uses: ce_bank_account_uses_all AP/AR/Payroll banks are specified by, ap_use_enable_flag, ar_use_enable_flag and pay_use_enable_flag.

© 2006 KBACE Technologies, Inc. 17 Three key CE tables now as: 1.CE_BANK_ACCOUNTS for bank accounts 2.CE_BANK_ACCT_USES_ALL for account uses by OU& LE 3.CE_GL_ACCOUNTS_CCID for bank account use accounting data 1.CE_BANK_ACCOUNT stores bank account attributes 2.CE_BANK_ACCT_USES_ALL table stores the bank account use attributes specific to Operating Unit (AR, AP) and Legal Entity (Treasury) 3.CE_GL_ACCOUNTS_CCID stores accounting data pertaining to the bank account use Bank, Branch and Bank account attributes in AP_BANK_BRANCHES and AP_BANK_ACCOUNTS_ALL tables are upgraded to to HZ_PARTIES and the new tables in Cash Management.

© 2006 KBACE Technologies, Inc. 18 The TCA tables used by Cash Management for modeling Banks and Bank Branches are listed below: 1.HZ_PARTIES 2.HZ_RELATIONSHIPS 3.HZ_RELATIONSHIP_TYPES 4.HZ_ORG_CONTACTS 5.HZ_ORG_CONTACT_ROLES 6.HZ_CONTACT_POINTS 7.HZ_PARTY_SITES 8.HZ_LOCATIONS 9.HZ_ORGANIZATION_PROFILES

© 2006 KBACE Technologies, Inc. 19 HZ_ORGANIZATION_PROFILES - stores additional attributes of banks and bank branches along with the history of changes made to Banks and Bank Branches. HZ_PARTIES - stores the contact person at the bank, bank branch and bank account HZ_CONTACT_POINTS - stores contact methods, details HZ_ORG_CONTACTS - stores the contact’s title HZ_ORG_CONTACT_ROLES - stores the contact’s purpose or role). T HZ_LOCATIONS - Stores address details of Banks and Bank Branches HZ_PARTY_SITES - stores party sites

© 2006 KBACE Technologies, Inc. 20 Impact of Upgrade 1. With Upgrade banks and branches migrated to TCA parties 2. Banks merged if the following attributes are all the same: a. Bank Number b. Institution type c. Country d. Bank admin e. Bank name alt f. Tax payer ID g. Tax reference number h. Description, Effective dates 3. Bank accounts, bank account uses are migrated into cash management. 4. Transactions are stamped with the bank account uses identifiers as part of the upgrade

© 2006 KBACE Technologies, Inc. 21 Suppliers Bank Accounts In 11i: Banks/Branches defined in AP Bank accounts often replicated in multiple OUs Before R12 : Suppliers, Banks and Branches are defined as Parties in TCA Supplier (party's) payment information and all payment instruments (Bank Accounts, Credit Cards) moved into Oracle Payments. Note: Banks and Bank Branches: ce_bank_branches_v (it's a view) These banks and bank branches are shared across internal and external bank account External bank accounts: iby_ext_bank_accounts