1. Reconciling Bank Statements

2. After completing this lesson, you should be able to do the following: Explain how to automatically and manually reconcile transactions Describe sweep transactions, reconciliation tolerances, multicurrency matching and clearing, value date, AutoReconciliation, and manual matching Describe creating bank statement cash flows from bank file, payments, receipts, and miscellaneous transactions Explain how to record exceptions and reversals Objectives

3. Describe how to reconcile corrections and adjustments to bank errors Describe reconciled and unreconciled transactions Explain how to clear and unclear transactions Describe transferring bank reconciliation transactions to your general ledger Explain archiving and purging Objectives

4. Overview –Linking to multiple sources –Across operating units Reconciling Bank Statements Automatically –Reconciling Sweep Transactions –Defining Reconciliation Tolerances –Multicurrency Matching and Clearing –Value Date Support –Reviewing Reconciliation Errors Reconciling Bank Statements Manually –Defining Reconciliation Tolerances Agenda

5. Creating Bank Statement Cashflow from Bank Statement Reviewing Reconciled Transactions Unreconciling Transactions Creating Payments, Receipts, and Miscellaneous Transactions Recording Exceptions Entering Reversals Reconciling Corrections and Adjustments to Bank Errors Agenda

6. AutoReconciliation and Manual Matching Manually Clearing and Unclearing Transferring Bank Reconciliation Transactions to Your General Ledger Archiving and Purging Agenda

7. Overview Receive bank statement Load and verify bank statement Perform reconciliation Review resultsCreate journal entries and post to general ledger

8. Overview (continued) Use the AutoReconciliation program to reconcile any bank statement in Oracle Cash Management automatically. AutoReconciliation Bank Statement Import Bank Statement Import and AutoReconciliaton

9. Reconciling to multiple sources Overview (continued)

10. Reconciling across different operating units AP-USAP-GLOBAL AP-APAC Overview (continued)

11. Reconciling Bank Statements Automatically Run AutoReconciliation program Review AutoReconciliation Execution report Identify reconciliation errors Reconcile manually (if necessary) Correct errors and run AutoReconciliation program

12. Reconciling Sweep Transactions Load, import, and reconcile bank statements with bank-initiated sweep lines for bank accounts shared between Oracle Payables and Oracle Treasury. Set up cash pools Enter bank transaction codes for sweep transactions Create bank statement mappings for sweep transactions Run Bank Statement Loader/ Import programs Run Sweep Transactions Generation program Run Auto- Reconciliation program Manually reconcile a sweep bank statement line Run the Unreconcile Bank Statement program

13. Reconciling Sweep Transactions (continued) Sweep Transactions Generation Execution Report lists sweep transactions generation exceptions

14. Defining Reconciliation Tolerances Enter reconciliation tolerances as percentages and/or amounts Auto Reconciliation computes the tolerance percentage amounts Program selects the smaller of the computed amount or the defined tolerance amount Program attempts to match the statement line against a transaction range

15. Multicurrency Matching and Clearing Oracle Cash Management clears transaction differences AutoReconciliation matches multicurrency transactions

16. Value Date Support Receipt Value Date Date when cash is realized in a bank account Payment Value Date Date when cash is withdrawn in a bank account This information is critical when calculating interest on bank accounts.

17. Reviewing Reconciliation Errors Review reconciliation errors online Review all statement reconciliation errors Review errors for a specific line

18. Reconciling Bank Statements Manually Reconcile any bank statement you imported or entered Create new bank statement lines as you reconcile Update the reconciliation for a previously manually- or automatically- reconciled statement

19. Creating Bank Statement Cash Flows from Bank File Define mapping rules in the Bank Statement Cash flow Mapping window Use the Bank Statement Cash Flow Creation program to create Cash flows automatically. Journal entries will be created automatically in GL from the Cash flows created. Review the Journal Entry Creation and Execution Report

20. Reviewing Reconciled Transactions The Reconciled Transactions Window shows the transaction type (receipt, payment or miscellaneous), number, status, date, and maturity date for each reconciled transaction.

21. Unreconciling Transactions  Unreconcile any reconciled transaction  Unreconcile a specific transaction that applies to a bank statement line  Unreconcile all transactions that you have reconciled against a statement

22. Creating Payments and Receipts Create Payables payments or Receivables receipts while manually reconciling a bank statement, to add new payments or receipts that were not entered previously in Payables or Receivables, but which have cleared the bank and show up in bank statement.

23. Creating Miscellaneous Transactions Create miscellaneous transactions to reflect banking activity, such as bank charges.

24. Recording Exceptions A bank statement can contain data about NSF (non-sufficient funds) and rejected receipts, stopped payments, direct deposits or debits, transactions created outside Oracle Applications, and/or irreconcilable errors against any transactions.

25. Entering Reversals You can reverse receipt transactions to account for NSF and rejected receipts. You can create a Standard reversal. You can create a debit memo reversal for the full amount of the receipt.

26. Reconciling Corrections and Adjustments to Bank Errors: Reversal The bank enters error corrections and adjustments as miscellaneous transactions. Reversal Adjustment The bank uses the same bank transaction codes you set up for miscellaneous receipts/payments to identify the statement lines generated for error corrections.

27. Reconciling Corrections and Adjustments to Bank Errors: Adjustment The bank enters error corrections and adjustments as miscellaneous transactions. Reversal Adjustment The bank uses the same bank transaction codes you set up for miscellaneous receipts/payments to identify the statement lines generated for error corrections.

28. AutoReconciliation Matching Reversal Method Tries to match the reversal entry to a statement line containing the same transaction number and opposite transaction type. Adjustment Method Tries to find both a transaction and a statement line to match to the adjustment entry. The statement line must contain the same transaction number as the adjustment line.

29. Manual Reconciliation Matching Reversal Method Reconcile the reversal entry with the error. Adjustment Method Reconcile the first correction entry with the original transaction and the error.

30. Manually Clearing and Unclearing You can also undo the cleared status of a cleared payment, cleared receipt, or open interface transaction. You can choose to manually clear receipts, payments, miscellaneous transactions, cash management cash flows, and open interface transaction without first reconciling them.

31. Transferring Bank Reconciliation Transactions to Your General Ledger In Payables, you create accounting entries, and then submit the Payables Transfer to General Ledger program to transfer the accounting entries to the General Ledger interface. In Receivables, you submit the General Ledger Interface program transfer accounting entries to the General Ledger interface.

32. Archiving and Purging After importing a bank statement into Oracle Cash Management, you can archive and purge the data from the bank statement open interface tables. Archiving saves copies of the bank statements information to archive tables Purging deletes all headers and statement lines from either the open interface, bank statement, or both tables

33. Archiving and Purging: Archiving and Purging Automatically Automatic archive and purge applies only to the open interface tables, not to the bank statement tables. Before any automatic reconciliation, archiving and purging occurs after the successful transfer of the bank statement information from the open interface tables to the bank statement tables.

34. In this lesson, you should have learned how to: Explain how to automatically and manually reconcile transactions Describe sweep transactions, reconciliation tolerances, multicurrency matching and clearing, value date, AutoReconciliation, and manual matching Describe creating bank statement cash flows from bank file, payments, receipts, and miscellaneous transactions Explain how to record exceptions and reversals Summary

35. Describe how to reconcile corrections and adjustments to bank errors Describe reconciled and unreconciled transactions Explain how to clear and unclear transactions Describe transferring bank reconciliation transactions to your general ledger Explain archiving and purging Summary