12i Cash Management new features - PART 2

IV. Bank Statement Reconciliation – Description:

In Release 12, Bank Transaction Codes can be linked to multiple sources. Previously each bank transaction code had to be linked to a single source, such as Accounts Payable. 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 Accounts Payable. In Release 12, you can link bank transaction code to as many sources as you would like and also assign a priority number used in the auto reconciliation for sequencing.

Reconciliation tolerances in Release 12 are moved from the system level to the bank account level. This means that each bank account can have a unique set or reconciliation tolerances. Moreover, there is now a distinction between tolerances for manual and auto reconciliation. Furthermore, auto reconciliation tolerances can be unique for each source – Accounts Payable, Accounts Receivable, Cash Management and Open Interface.

Finally, since now it is possible to use the same bank account, created in the centralized model, in multiple organizations, the bank statement reconciliation is also done across Operating Units.

Bank Statement Reconciliation - Benefits:
The enhancements for the Bank Statement Reconciliation process allows you to improve efficiency. By having granular level reconciliation tolerances and the ability to cross operating units, you will increate straight-through processing success rate of the auto reconciliation.

Setup:
•Now part of bank setup
•Transaction Codes
–Assign a transaction code to multiple transaction sources
•Account Controls
–Reconciliation control parameters

V. Multi-Org Access Control and Security:

•Provides bank account maintenance security.
–Privilege to create and update bank accounts that belong to the legal entities that the user can access
•Provides bank account access security.
–Bank Account Access Cash Management Security Profile: Which organizations the user can access. Sets:
—Bank Account use
—Treasury security
—MOAC security
—Payroll security

Benefits:
•Reduced Costs: Enable shared services centers and cut down processing time.
•Improved Efficiency: Easily access data from different operating units.
•Improved Security Control: Explicitly grant access to specific users for specific purposes.

VI. Cash Pooling:

Cash leveling or Cash Pooling is a cash management technique aimed at optimizing the balances of the internal bank accounts held at one or several banks. It is usually performed on a daily basis and can be done by transaction or by total net end-of-day balances. To perform cash leveling, you need to define a cash pool and assign internal bank accounts setup in Oracle Treasury to the cash pool.

Creating Cash Pools:
•Notional Cash Pools:
–Consist of one concentration account and multiple sub accounts
–Are used for cash leveling similar to zero balancing without the actual funds movement
•Physical Cash Pools:
–Consist of one or two concentration accounts and multiple sub-accounts with funds transfer rules specified
–Are used for cash leveling wherein you can initiate fund transfers or mirror outsourced cash pools

Viewing and Updating Cash Pools:

•You can view cash pool information as follows:
–Search for the cash pool name
–Click on the cash pool name in the Search and Results page
•If you have the appropriate user security, you can update the cash pool