Bank Account Model in Release 12i

Here is a summary of the new features introduced by 12i in the area of Bank Account Model:

Bank Account Model Definition:
The new bank account model allow you to define and keep track of all bank accounts in the e-Business Suite in one place and explicitly grant account access to multiple operating units/functions and users. Bank accounts for internal use in Cash Management, Payables, Receivables, Treasury and Payroll are consolidated in Release 12. If you were using internal bank accounts in prior releases, all bank accounts will be migrated into the centralized bank account model automatically during the upgrade.

UMX-based Security:
The CE UMX Security Wizard is available under the User Management (UMX) responsibility. The wizard helps you quickly define the legal entities available for a role. To launch the wizard, log in as System Administrator, then in the User Management responsibility, go to Roles & Role Inheritance.

Bank Account Model Interaction :
In previous releases, Oracle Accounts Payable owned banks, bank branches and bank accounts. Such bank accounts could also be used by Accounts Receivable. Payroll and Treasury, however, had their own bank account models. In Release 12, banks and bank branches are created as Trading Community Architecture parties. The bank accounts are associated with Bank Branches but reside within the Cash Management application. During the bank account creation, you will be able to define in which applications this bank account can be used.

Bank Account Model Benefits:
The new model reduces the number of access points to manage bank accounts by providing a centralized user interface where all internal bank accounts can be set up. Bank account access in the new model can be granted to multiple operating units, thus eliminating the redundant duplicate bank account setup under different operating units in case these operating units share the same bank account. This simplifies the reconciliation process since now one bank account is the system corresponds to one bank account at the bank.

Cash Management Security Components:
Set up security for access to Cash Management activities by using components from different applications. The specific steps required to secure access to your bank accounts depend on the type of access you want to secure, the applications that you use for your business, and your organization structure.
•Use the CE UMX Security Wizard to grant a role (responsibility) the ability to perform bank account activities in the following areas:
-Use: View bank statements, reconcile cashflow transactions, work with cash forecasting, cash positioning, and cash pools
-Maintenance: Create and update bank accounts
-Bank Account Transfers: Transfers funds from and to internal bank accounts.
•When creating bank accounts, specify the legal entity that owns the account and the organizations that the account is used for (Payables, Receivables, Treasury, Payroll).
•Create security profiles to define the list of organizations that a user can access. Set up security profiles in the following applications as needed:
-MOAC: to define the list of operating units a user can access for Payables and Receivables and be able to reconcile AP and AR bank statement lines.
-Cash Management: to define the list of organizations a user can access to reconcile cashflow transactions. This security profile also allows users to access bank accounts for cash forecasting, cash positioning, and cash pools if no other security profiles are set up.
-Treasury: to define the legal entity that the Treasury user can access and be able to reconcile Treasury bank statement lines.
-Payroll: to define the business groups a user can access and be able to reconcile payroll transactions.

Bank Account Model Setup and Process:
•Responsibility: Cash Management
•Navigation: Setup:Banks > Banks
The key setup steps are:
•Define Banks in Oracle Cash Management.
•Define Bank Branches in Oracle Cash Management.
If you intend to use this bank account in Oracle Treasury as a company bank account, switch to that application, define Bank Counterparties and link them to Bank Branches that you have created. If you do not intend to use this bank account in Oracle Treasury, skip this step and proceed straight to the Bank Account definition.
At this point the system verifies your privileges for bank account maintenance. If you are authorized to maintain bank accounts for this legal entity, you will be able to create your Bank Accounts in Oracle Cash Management.
If you do not intend to use this bank account in Payroll, then the setup process is complete for you. If you intend to use this bank account in Payroll, switch to that application and add this bank account to the organizational payment method.

Implementation Considerations:
The bank new account model has several dependencies on other applications and centralized features.
•There is a dependency on the Trading Community Architecture because this is where the banks and the bank branches are stored.
•The organizational hierarchy comes from Human Resources.
•Finally, the General Ledger accounts that are assigned to the bank accounts are defined in General Ledger.
•If you are using Payroll or Treasury, then the bank account set up depends on those applications as well.