Cash Management

[anu_uma]

<font color="blue">Cash Management provides three responsibilities: Cash Management, Bank Reconciliation, and Cash Forecasting.

Cash Management uses information from General Ledger, Payables, and Receivables for bank statements reconciliation; and from GL,OM, AP, Payroll, Purchasing, and AR for cash forecasting. Need to perform certain setup steps in these applications before Using the Cash Management with these modules.

The below given details are need to be performed in order to integrate cash management with other modules.
<b>GL SET UP's</b>Define your chart of accounts.
Define your accounting period types and accounting calendar periods.
Enable currencies that you plan to use.
Define a set of books. Specify a set of books name and assign it a calendar, functional currency, and a chart of accounts structure.
Define a transaction calendar to determine which days are business days to be used in cash forecasting.

Payables Setup Steps

Step

Choose a primary set of books for Oracle Payables.
Set the Payables Option: Account for Payment.
Open your Payables accounting periods.
Define your bank accounts, and assign GL accounts.

The Account for <b>Payment option </b> and the account for <b>Gain/Loss option</b> in the <b>Payables Options </b> window has the following two check boxes:
? When Payment is Issued
? When Payment Clears

You can select one or both options. To account for payments that you reconcile in Cash Management, you must select at least When Payment Clears. If you select both options then this also allows you to use a cash clearing account and create accounting entries for bank charges, errors, and gains/losses. If you do not enable this option, you can still reconcile payments in Cash Management, but you cannot create reconciliation accounting entries

<b>Receivables Setup Steps</b>

Choose a set of books for Oracle Receivables.
Open your Receivables accounting periods.
Define a receipt class for miscellaneous receipts. This receipt class is optional, but is required if you plan to create miscellaneous receipts (or payments) from Cash Management
Define receivables activities for miscellaneous transactions. For example, define receivables activities with a type of Miscellaneous Cash or Bank Error
Set up receipt sources. When you define a receipt source, you can enter a default receipt class and payment method. Receipt sources assign numbers to batches and determine where deposits get remitted.

Define your bank accounts, and assign GL accounts.
Cash Management Setup Checklist

To implement Cash Management includes setup steps for data that may be shared with other Oracle Applications, which Cash Management requires. If you have already defined this information when setting up other Oracle Applications, you can skip those steps. This shared data includes:
? Currencies
? Exchange Rates
? Organizations
? Sets of Books
? Bank Accounts

Since some setup steps build upon information you define in other steps, you should perform them in the order listed.

<b>To set Cash Management system parameters:</b>1. Navigate to the System Parameters window.
2. Select your basic system parameters. For details on any field, see: System Parameters *****All options are updatable except for Set of Books,
3. Select the General tabbed region, then choose your general system parameters.
4. Select the AutoReconciliation tabbed region, then choose your automatic reconciliation parameters.
5. Save your work.

<b>To Set up AP or AR integration in Cash Management</b>

1. In the Banks and Bank Accounts windows, define each bank account that you will be reconciling. In the Account Use field select Internal.
2. For each bank account, in the GL Accounts tabbed region of the Bank Accounts window, enter the GL accounts you want to use to account for transactions that you reconcile.
3. Cash 4. Cash Clearing 5. Bank Charges 6. Bank Errors (Payables only) 7. Confirmed Receipts (Receivables only)
8. The accounts you defined for the bank account default to any Payables payment documents and Receivables payment methods you define. You can override these
default accounts in the Payment Documents window when you define payment
documents for the bank account.
9. For each remittance bank account, assign a Remittance Account.
Creating Payments and Receipts Transactions
You can create payments or receipts while you are manually reconciling a bank statement in Cash Management. This makes it easy to add new payments or receipts that were not entered previously in Payables or Receivables, but which have cleared the bank. You can then reconcile the transactions immediately after you create them.</font id="blue">

[SRIDHAR]

Hi all,

I just want to add some more to the concept.
Cash management in 11.5.10 has another most important workbench i.e. Cash Positioning
Its a powerful tool to know the position of Cash on particular days and also has a great feature called Balance Mapping, where the Cash forecasting is Mapped with Cash Position to get Balances
Try to explore that also.

Regards,
CA Sridhar.K

[yemfola]

Srindhar
Please give steps on How to perform the cash positioning as you have done it before and know the concept

Regards