r12 reconciling bank statements

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Reconciling Bank Statements

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Overview

Reconciling Bank Statements Automatically

Reconciling Bank Statements Manually

AutoReconciliation Matching

Manual Reconciliation Matching

Manually Clearing and Unclearing

Transferring Bank Reconciliation Transactions to Your General Ledger

Archiving and Purging

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Section 1Overview


Section 2Reconciling Bank

Statements Automatically


The AutoReconciliation Execution Report is automatically produced by Oracle Cash Management during the AutoReconciliation process.

It shows import and reconciliation errors that occurred during the AutoReconciliation process.

It lists receipts created in Receivables during AutoReconciliation.

It includes either statement import errors or your reconciliation exceptions found during AutoReconciliation.

Reconciling Bank Statements Automatically


Before AutoReconciliation, you can automatically create and settle transactions in Oracle Treasury corresponding to the sweep statement lines if a match is not found.

You run the Sweep Transactions Generation program, which searches for treasury transactions that match the sweep statement lines details and corresponding cash pool.

You can then run the AutoReconciliation program to reconcile the bank-initiated Sweep statement lines.

Reconciling Sweep Transactions


You can define reconciliation tolerances for the AutoReconciliation program, which reconciles Payables payments and Receivables receipts within tolerances and automatically posts any amount differences.

General Ledger journal entries are automatically reconciled in Cash Management only if the journal line amount and the bank statement line amount are the same.

If the payment amount and the statement line amount difference is within defined tolerances, AutoReconciliation posts the difference to either the Payables Bank Charges account or the Bank Errors account, depending on how you defined the Cash Management AP Tolerance Differences system parameter

If the receipt amount and the statement line amount difference is within defined tolerances, the program posts the difference to the Receivables Bank Charges account.

Defining Reconciliation Tolerances


The AutoReconciliation program handles statement line matching to transactions differently, depending on the bank account currency.

The transaction amount is the amount recorded in the system.

The tolerance amount in the bank account definition is always in the bank account currency.

The minimum of the percent and amount tolerance is used as the actual tolerance.

Reconciliation supports the following currency scenarios: Domestic: Functional, bank account and transaction currencies are same. Foreign: Bank account (USD) and transaction (USD) currencies are same but functional currency

(EUR) is different. International: Functional (USD) and bank account (USD) currencies are same but transaction

currency (EUR) is different.

Clearing takes place after matching, so any difference between the statement line amount and the original transaction amount is already verified to be within the specified tolerance limit.

Cash Management determines clearing amounts for the charges, errors, and foreign gain/loss accounts as necessary to clear the transaction.

Multicurrency Matching and Clearing


After running AutoReconciliation, you can review any reconciliation error from the Bank Statement or Bank Statement Line window.

The Bank Statement window shows errors for both statements and individual lines. To review import validation errors, use the Bank Statement Interface window.

The Bank Statement Summary Report shows summary bank statement information for a bank account.

The Bank Statements by Document Number Report lists bank statements in document number order, to help you identify missing and deleted statements. If you or your System Administrator sets up the Document Sequences feature for Cash Management, then you can print a report to list all bank statements in document number order.

Reviewing Reconciliation Errors


Section 3Reconciling Bank

Statements Manually


When you use manual reconciliation, you can search for the following:

Payroll or Payables payments, Receivables receipts, miscellaneous transactions, GL journal entries, open interface transactions, and specific statement lines

Treasury settlements by using the Reconciliation Open Interface Customer or supplier transactions, batch name, or remittance number,

ranges for transaction numbers, transaction date, transaction amount, and maturity date

Journal entries on period name, journal entry name, document number, or line number

As you reconcile a statement manually, you may need to create transactions to account for differences between the sum of the reconciled transaction and the line amount.

Reconciling Bank Statements Manually


If you implement the automatic bank transmission feature, use the Payment Exceptions Report to view payment exceptions generated by the bank and transmitted to your local directory.

You can view the transmission history and the actual report in the Transmissions window.

In the Find Transmissions window, choose the file type of EXCEPTION to query exceptions reports.

Select the File Text field of the file you want to view and choose Edit Field from the Edit menu. The Editor window displays the content of the file you selected.

To resolve the payment exceptions, you need to manually unreconcile the transactions in Cash Management and void the payment in Payables.

Recording Exceptions


Section 4AutoReconciliation

Matching


The AutoReconciliation program can match to a payment, receipt, miscellaneous payment, or miscellaneous receipt line.

The program handles both reversal and adjustment methods. If you don’t have the transaction number, Cash Management will use the invoice and the agent bank account number to match.

Reversal Method: For example, if the reversal entry is a miscellaneous receipt, then the program matches to a payment or miscellaneous payment. If the amounts net out to zero, then the program assumes there is a match and reconciles the statement lines.

Adjustment Method: The statement line can be a payment, receipt, miscellaneous payment, or miscellaneous receipt, as long as the amount netted out is within the tolerance of the original transaction.

If the error statement line is already reconciled to a transaction due to the amount difference between the transaction and statement line falling within the tolerance amount, you must first unreconcile the error statement line before the AutoReconciliation program will reconcile it with the correction statement line.

AutoReconciliation Matching


Section 5Manual

Reconciliation Matching


If you are reconciling bank statements manually, the Reconcile Bank Statements window retrieves all available statement lines and transactions that match your selection criteria. Then you can decide how you want to reconcile the correction entry.

If you have already reconciled the error statement line to a transaction, you must first unreconcile the error statement line before attempting to reconcile it with the correction entry.

Sometimes, a bank uses one correction entry to correct multiple error statement lines. You can manually reconcile between multiple statement lines.

Manual Reconciliation Matching


Section 6Manually Clearing

and Unclearing


Clearing and Reconciling Transactions in Oracle Payables

Clear payments in Oracle Cash Management. Reconciliation accounting entries for the payments are created in Oracle Payables

and are then ready to be transferred to the General Ledger Interface tables. The Cleared Transactions Report shows transactions that were cleared or

reconciled both manually and automatically and can be submitted for Payables payments only, receipts only, payroll payments, or all three.

Clearing and Reconciling Transactions in Oracle Receivables You can clear receipts in Oracle Receivables prior to reconciliation to maintain

current cash account balances. When you clear a transaction, you assign a cleared date and status to the

transaction, and data used to create accounting entries is recorded in Receivables.

When you reconcile a transaction, the uncleared transaction is first cleared and then matched to bank statements.

Manually Clearing and Unclearing


Section 7Transferring Bank

Reconciliation Transactions to Your

General Ledger


When you reconcile bank statement lines to journal entries in General Ledger, no reconciliation accounting entries are created.

Transferring to General Ledger is only required for entries created in Payables and Receivables.

Cash Management does not provide reconciliation accounting data to Payroll.

If you use General Ledger, you need to run the Journal Import program after transferring your reconciliation accounting transactions from Payables or Receivables to create journal entries based on the reconciliation transactions.

Once you run Journal Import, you need to post your journals in General Ledger.

Transferring Bank Reconciliation Transactions to Your General Ledger


Use the GL Reconciliation Report to reconcile the General Ledger cash account balance to the bank statement closing balance and to identify any discrepancies in your cash position.

The General Ledger cash account should pertain to only one bank account.

The summary report lists the General Ledger cash account balance, an adjusted balance for the bank statement, a separate adjustment amount for unreconciled receipts, payments, journal entries which have been recorded in the General Ledger cash account, and bank errors.

The detail report provides details for the unreconciled items as well as the information contained in the Summary report.

Transferring Bank Reconciliation Transactions to Your General Ledger….


Section 8Archiving and Purging


After you import a bank statement into Oracle Cash Management, you can purge its data from the Bank Statement Open Interface tables.

After you reconcile it, you can purge its data from the Bank Statement tables.

To save a copy of your bank statement, you can archive the data before you purge it.

You can also archive or purge intra-day bank statement data from the Bank Statement Open Interface and the Intra-Day Bank Statement tables.

You can run the Archive/Purge Bank Statements program to archive and purge.

When the program completes, it automatically prints the Archive/Purge Bank Statements Report to display the number of headers and lines that were archived or purged

Archiving and Purging

r12 reconciling bank statements

Documents

error statement

reconciliation

document number

oracle cash

bank account

journal entries

statement

cash management