Bank Transfer in R12

[kishorebhupati]

Hi,

We have a problem in R12 i.e. whenever we do bank transfer from one bank to other bank in CM Module, Accounting effect is not reflected in perfect. i.e.

A bank A/c Dr.
Inter Entity Receivable Cr

Inter Entity Payable A/c Dr.
B Bank Cr.

There is inflow into A bank and outflow from B Bank. But inter entity receivable and payable are standing amounts without knock off. To knock off them and get the corrected entry what changes are to be done.
A Bank A/c Dr
B Bank A/c Cr

[Erikson]

This is an intended functionality!!

Strictly speaking, Bank Account Transfer consists of 2 transactions: Cash Inflow - Receipt & Cash outflow - Payment.

Assume that we don't have the 2 offset Accounts:
When you transfer the Cash Inflow and Cash Outflow to GL as a single entry, Journal Entry will be balanced.
Suppose, if you transfer the entries separately (Inflow and Outflow separately), Journal will be unbalanced, which is the reason we have the Offset Entries.

There is no need to knock off the entries. They are already knocked off. Once you transfer the entries to GL (Asset Account Balance and Liability Account Balance are going to be equal).

I hope this clarifies the issue.

Navaneeth

[kishorebhupati]

Hi Navaneeth,

I am not transferring the entries separately. Once i do Bank Transfer i.e. Intra Company Transafer. I run create Accounting from Cash Management and in GL I see the two accounts inter entity Receivable and Inter Entity Payable which does n't gets knock off.
Please let me know in detail what is the correct procedure and needed changes in setups to make to get the correct entry.

Kishore

[Erikson]

Hi Kishore

I am just trying to explain the Logic behind the functionality. Your setup is perfect. I know you will not transfer the Entries separately but still if you transfer, it should be balanced (from Oracle perspective). Since the IntraCompany Payable Account and Intracompany Receivable Account are equal, they are knocked off.

This is explained in Metalink Doc Id: 463866.1 with respect to SLA ADR.

I believe you haven't done Bank Account Transfer in Foreign Currency. Do it and you will have more surprises!!

Navaneeth

[niletra]

HI

ACTUALLY

bank a/c cr (From which you transfer a money)

Intra compnay a/c dr.

Intra compny a/c cr.

bank from which u received money dr.

so ultimately bank a/c cr
and your bank a/c dr.

entire transcation take place in CM
so NO AP AND AR comes into the picture

this two account is contra account...........

correct me i am wrong..........

THANKS
NILETRA

[kishorebhupati]

Dear Erickson/Niletra,

I have refered to the link it states that "the CR line for outflow and DR line for inflow will have the same ccid but they are not intracompany lines".
Problem is when i run Trial Balance the Receivable and Payable balances will exist.
Is there is any way to take similar accouts.

[Erikson]

Hi Kishore

As far as i know, we cannot use the same Account. To verify that Metalink Note, we have to check SLA ADR for Cash Management. But I dont find SLA Menu in Cash Management. I will check and let you know. If possible, you can also verify the SLA ADR.

Navaneeth

[abhyankarnarayan]

Hi,

Just a question?
In case I dont have AR, can I handle this just by a JV in GL?
Dr. the receiving bank account.
Cr. the paying bank account.
Will it create problems in Cash Management? Can I reconcile through GL?

Thanks,
Narayan

[Erikson]

Hi Narayan

I believe the Bank needs to have Receivables enabled for the Bank Account Transfer Functionality.

So, when you don't have AR, you cannot enable Receivables for the Bank which means you cannot use Bank Account Transfer Functionality.

Navaneeth

[abhyankarnarayan]

Hi Navneeth,

Thanks. But in that case, I dont want to use the bank transfer functionality. Can I handle this in GL with a JV?

Thanks,
Narayan

[kishorebhupati]

Hi All,
Please let me know how i can handle bank transfer though Cash Management with knock off between Inter Company Accounts.

[Murali]

Hi,

You can use the GL JV to have the interbank transfer and the same can be reconciled at CM also, by referring the Cheque Number at the Line level of the JV.

Debit the receiveing bank
Credit the paying bank

This is the best method.

Hope it clarifies.

Regards,
Murali

[Erikson]

Hi Narayan

You can very well handle this in GL with a simple manual Journal as you say you dont have Receivables.
Debit the Receiving Bank Account
Credit Paying Bank Account. No Issues with that.

Hi Murali

I wonder what you mean by "interbank transfer and the same can be reconciled at CM also, by referring the Cheque Number".
I don't know how you get a Cheque Number which you can be reconciled in CM, when there is no transaction at the Subledger Level.

Pls let us know if there is any such functionality.

Navaneeth

[kishorebhupati]

Dear Admn,

There are lot of contibutoy opinions but not to perfect, Hope you can help in resolving this issue.

[Erikson]

Hi Kishore

First of all, you have to understand that there is no need to knock off these entries. If you still want to knock off these entries, you can create a recurring journal at the period end and nullify these 2 Accounts.

You can very well check the Metalink ID: 463866.1 and check the SLA ADR for Cash Management.

Navaneeth