Oracle Cash Management Setups - Defining Bank Transaction Codes in CM

Oracle Cash Management Setups - Defining Bank Transaction Codes in CM

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We must define bank transaction codes in Oracle Cash Management if we wish to use Oracle's electronic bank statements with the Auto Reconciliation features. The codes used by our bank identify the different types of transactions on our bank statement. We must define a bank transaction codes for each code you expect to receive from our bank. We may define different codes for different banks.

Cash Management defines the following possible types:

  

Payment: 

Payments such as generated or recorded checks, payment batches, wire transfers, electronic funds transfers, or payroll checks.

Receipt:

 Receipts such as received checks, remittance batches, direct debits, and bills of exchange.

Miscellaneous payment:

 Payments not associated with supplier invoices, such as petty cash transactions directly posted to cost accounts, or bank charges.

Miscellaneous receipt:

 Receipts not associated with customer invoices, such as petty cash transactions directly posted to revenue accounts, such as interest received.

Stopped:

 Stopped payments previously entered, generated, or cleared, such as callback of check. A stopped transaction type matches only to Voided or Stopped payments in Payables or Oracle Payroll.

Rejected:

 Receipts rejected for reasons other than non-sufficient funds, such as an invalid bank account. A rejected transaction type matches only to reversed receipts in Receivables.

NSF (Non-Sufficient Funds):

Receipts rejected by the bank because the accounts on which they were drawn had non-sufficient funds. You can reverse these receipts by creating a standard reversal. Cash Management reopens the invoices you closed with the original receipt. When you match bank statement lines with transactions, an NSF transaction type only matches to reversed receipts in Receivables.

Sweep In.

 Incoming funds transfer from an internal bank account. This bank transaction type identifies the originating bank account.

Sweep Out.

 Outgoing funds transfer from an internal bank account. This bank transaction type identifies the receiving bank account.

Navigation : ______________________________________

1. Navigate to the Bank Transaction Codes window.

2. Select the bank, whose codes you are defining, from the Find Bank window. 

Alternatively, you can query the bank Account Number. The system displays the Bank Transaction Codes window, which includes Bank Account and Bank information, as well as a region for entering transaction codes.

3. For each transaction code you are defining, select a transaction Type from the poplist. The transaction type determines how Cash Management will match and account for transactions with that code.

4. Enter the Code used by your bank.

5. Enter an optional description of the transaction.

6. Enter Start and End Dates to determine when the bank transaction code is considered active.

7. Enter the number of Float Days that you want Cash Management to add to or subtract from the statement date to create an anticipated value date for automatic lockbox receipts.

8. Enter a Transaction Source for payment and receipt transactions. Choose Journal from the list of values to reconcile statement lines with the assigned transaction code to General Ledger journals. 

9. Optionally select a value for the Payroll Payment Format field to reconcile statement lines with the assigned transaction code to Payroll EFT payments. T

10. If the transaction Type is Miscellaneous Receipt or Miscellaneous Payment, enter the Matching Against field to determine the order of matching and the type of transactions to match.

§  Misc: Only match against miscellaneous transactions.

§  Stmt: Identify the statement line as a correcting entry. The statement line will match against existing statement lines. The netted amount of these lines is used to match to subledger transactions.

§  Misc, Stmt: First try to match against miscellaneous transactions, if there is no match, then try to match against statement lines (corrections).

§  Stmt, Misc: First try to match against statement lines (corrections), if there is no match, then try to match against miscellaneous transactions.

11. Choose the Correction Method your bank uses when correcting bank errors: Reversal, Adjustment, or Both.

This field is only applicable for those Miscellaneous Receipt or Miscellaneous Payment transaction codes that may be used to match to correction statement lines.

12. Choose whether to Create transactions for any Miscellaneous Payments and Miscellaneous Receipts reported on the bank statement when no transaction number is provided.

13. If you chose the Create option in the previous field, specify the Receivables Activity type and Payment Method for any miscellaneous transactions (receipts or payments) you create from within Cash Management.

14. Define each additional bank transaction code, following the previous steps.

15. Save your work.