OUM

Business Process Design

Cash Management

Author: Muhammad Zubair Jamil

Creation Date: 07 March 2021
Last Updated: 07 March 2021
Version: 1.0
Status: Draft

Approvals:

Client Project Manager

APPSLINK Project Manager

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Document Control

Change Record

Date Author Version Change Reference

07-Mar-2021 Muhammad Zubair Jamil Draft 1.0

Reviewers

Name Position

Tasweer ur Rehman

Distribution

Name Position Location

1 Library Master
2 PMO
3 Financial Team

Note to Holders:
If you receive an electronic copy of this document and print it out, please write your name
on the equivalent of the cover page, for document control purposes.
If you receive a hard copy of this document, please write your name on the front cover, for
document control purposes.

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Contents

PURPOSE ......................................................................................................................... 4
GENERAL ......................................................................................................................... 5
OVERVIEW ........................................................................................................................... 5
BANK / BRANCH/ ACCOUNT MANAGEMENT ................................................................... 5
BANKS MASTER..................................................................................................................... 5
SECURITY AND CONTROLS........................................................................................................ 6
BANK MASTER MANAGEMENT IN ORACLE ...................................................................... 7
BANK MASTER MANAGEMENT – ORACLE PROCESS OVERVIEW....................................................... 8
TRANSACTIONS PROCESSING .......................................................................................... 9
BANK TRANSFERS .................................................................................................................. 9
BANK TRANSFERS IN ORACLE CASH MANAGEMENT ...................................................... 10
BANK TRANSFERS – ORACLE PROCESS OVERVIEW ...................................................................... 11
BANK CHARGES ................................................................................................................... 12
BANK CHARGES/ OTHER INCOME THROUGH EXTERNAL TRANSACTIONS ...................... 13
BANK CHARGES / INCOME PROCESS – ORACLE PROCESS FLOW .................................................... 14
BANK BALANCES AND RECONCILIATIONS ...................................................................... 15
BANK BALANCES .................................................................................................................. 15
BANK STATEMENT RECONCILIATION ........................................................................................ 15
MANAGE BANK STATEMENTS & RECONCILIATION IN ORACLE CASH MANAGEMENT .... 17
BANK STATEMENT UPLOADING – ORACLE PROCESS OVERVIEW .................................................... 18
BANK STATEMENT RECONCILIATION – ORACLE PROCESS OVERVIEW .............................................. 19
REPORTING REQUIREMENTS ......................................................................................... 20
REPORTS AND RELATED FORMATS ........................................................................................... 20
MISCELLANEOUS ........................................................................................................... 20
APPLICATION CONFIGURATION QUESTIONNAIRES ....................................................... 21
OPEN AND CLOSED ISSUES ............................................................................................ 22
OPEN POINTS ..................................................................................................................... 22
CLOSED POINTS ................................................................................................................... 22
GAP LOG............................................................................................................................ 22
DESIGN FEEDBACK ............................................................................................................... 22

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Purpose
The purpose of this document is to present process flows that will be applicable to the Clients' business process in Oracle Fusion Applications.
Information gathered during the user's sessions are also made part of this design document and presented together with the Oracle Standard
Process Flows based on Modern Best Practices as applicable to the Client. The structure of the document ensures that information gathered
from the Key Users is followed by the relevant Oracle Process Flow so that the users are able to relate to the Process as per standard features
available in Oracle.

This document will become standard baseline for the configuration of all Legal Entities in scope and for the training sessions. Detailed training
material will be shared on the basis of approved design.

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No. Questions Answers Gap

1 General
1.1 Overview
Briefly describe your Bank balances management and related Bank Reconciliations are prepared manually based on
1.1.1 reconciliation process. bank statements obtained from the bank. Some of the
reconciling items include Payment issue but not yet
cleared from the bank. Further cash flow forecast is also
required.

Cash flow forecast can be generated from front end/

smart view, projecting payments and deposits
scheduled in the ERP.

2 Bank / Branch/ Account Management

2.1 Banks Master
2.1.1 What types of bank accounts you have (e.g. Saving, Current / We have following types of bank accounts;
checking)?
• Saving
• Current
• Checking
• Credit Card
• Petty Cash

2.1.2 Is there any minimum / maximum payment amount limit for Currently it is not maintained but would like to maintain
the bank accounts? it in the Fusion system.

As per provided master data, minimum and maximum

payment amounts can be mentioned for Bank Accounts.

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No. Questions Answers Gap

2.2 Security and Controls

2.2.1 What type of payment document (check/Wire) and related We have following types of payments
sequence (preprinted / blank) you use?
− Cheques,
− Wire transfers (Online banking portal)

Yes, we want to print cheques from system.

Preprinted check formats will be shared.

2.2.2 Do you maintain minimum balance for the bank accounts? Currently it is not maintained but would like to maintain
it in Fusion system. We do it manually currently to
ensure minimum balance is maintained.

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Bank Master Management in Oracle
Oracle Fusion Cash Management maintains bank account information to be used for payment and receipt processing in other modules. Banks,
Branches and Accounts fit together on the premise of the Bank Account model.

The model enables you to define and keep track of all bank accounts in one place and explicitly grant account access to:

• Multiple Business Units

• Functions
• Users

This eliminates the redundant duplicate bank account setup in different business units when these business units share the same bank account.

In order to enable a bank account for payment or receipt processing users have to create Bank, Bank Branch and Bank Account. Once the bank
is defined in the system it can have as many branches and each branch can have as many bank accounts as required.

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Bank Master Management – Oracle Process Overview
Legend:
Process owner(s) Accounts Department

Manual process Data Manual Document

Oracle Fusion Cash Management, Oracle Fusion Accounts
System
Receivables and Oracle Fusion Payables
Decision Start / End Database

Process Bank Master Management Document System Process Validation

Title: Bank Master Management

Receive New /
Update Bank Create Bank
Start Bank Exist? No
Account with details
Information
Yes
Cash Management

New / Update
Bank A/c Create Bank
Bank Branch End
No Branch with
Exist?
details

Yes No

Create Bank Create /update

Bank Account Pay Doc Update required
No Account with Yes Payment
Exist? Update? information
Details Document

Yes

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No. Questions Answers Gap

3 Transactions Processing
3.1 Bank Transfers
3.1.1 Do you transfer money from one account to another account? Yes. This should cover transaction reference,
accounting information etc.

3.1.2 Do you issue or prepare a check for bank accounts transfer? No.

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Bank Transfers in Oracle Cash Management
Bank account transfer functionality is used to transfer funds between Internal Bank Accounts. Accounting Entries will be generated after
reconciling the transaction with the bank statement. Create Accounting program will be used to transfer Cash Management Accounting
information to General Ledger. This functionality will be used for bank transfers that will be originated by individual entities.

Ad Hoc Payments in Oracle Cash Management

Ad hoc Payments represent a payment done to an Ad hoc payee with respect to any investment’s decisions. You can initiate bank account
transfers from the Ad Hoc Payments page. Ad hoc Payments can be setup through an approval process prior to the processing. It can be either
processed as a payment in fusion payables or as a journal set to Fusion General Ledger.

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Bank Transfers – Oracle Process Overview
Legend:
Process owner(s) Accounts Department
Manual process Data Manual Document
Oracle Fusion Cash Management, Oracle Fusion Accounts
System
Receivables and Oracle Fusion Payables Decision Start / End Database

Process Bank Transfers Document System Process Validation

Title: Bank Transfers

Note: Bank with currency same as ledger currency can transfer in any currency but other can transfer in their related currency account only
Authorize Users will
Be able to perform
Transactions

Prepare Bank Printed Cheque

Start
Account Transfer Required?
Cash Management

Yes No

Process Bank Process Bank

Transfer with Transfer with
settlement settlement
through Payables without Payables

Authorize Bank
End
Transfer Designated User will Only
Authorize Bank Account
Transfers

Cheque
Accounts
Payables

Generate
Information
Printed Cheque
generated from
Cash Management

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No. Questions Answers Gap

3.2 Bank Charges

3.2.1 How do you record the bank charges? Currently it is recorded in GL. Currently recorded while
doing bank reconciliation. Would like to automate.

Note: In Oracle Fusion Cash Management, External

Transactions for Bank Charges will be auto-created
from Bank Statements based on Bank transaction codes
for Bank Charges identified by Business Users.

3.2.3 How do you record the foreign currency rate difference? Currently it is recorded in GL. Currently recorded while
doing bank reconciliation and transaction as well.

Note: In Oracle Fusion Cash Management, Foreign

Currency Rate differences will be parked to
Reconciliation difference account if it falls within
tolerance limit. At quarter/ year end, amount can be
cleared from Reconciliation Difference Account by
parking it to relevant expense account.

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Record Bank Charges/ Other Income through external Transactions
Create External Cash Transaction functionality will be used at Visioneers to record the transactions appearing in the bank statement but not in
the system. Following are examples of such transactions which will be identified based on the reconciliation process:

• Bank Charges
• Sweep Transfers
• Miscellaneous Receipt
• Miscellaneous Payments

Upon running the External Cash Transaction program, the system can automatically create transactions based on rules defined from
unreconciled statement lines to record items such as bank charges, interest or other miscellaneous.

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Bank Charges / Income Process – Oracle Process Flow
Legend:
Process owner(s) Accounts Department

Manual process Data Manual Document

Oracle Fusion Cash Management, Oracle Fusion Accounts Receivables and
System Oracle Fusion Payables
Decision Start / End Database

Process Bank Charges / Income Adjustment Document System Process Validation

Title: Bank Charges/ Other Income

Create Bank Statement of Charges / Income

Start No Perform Reconciliation End
related Bank Adjustment?
Cash Management

Yes
Bank
Statement in
specified
format (MT Transaction Code
940, Bai 2 etc.) Run Transactions Auto
setup for Auto Yes
Creation Process
Creation

No

Create/ Upload
External Transactions

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No. Questions Answers Gap

4 Bank Balances and Reconciliations

4.1 Bank Balances
4.1.1 Do you prepare your cash balance position /forecasts? No, but would like to do it in Fusion system.

Currently preparing cash balance position manually in

excel.

Note: In Oracle Fusion Cash Management, Cash flow

position/forecast can be generated from front end/
smart view, projecting payments and deposits details
in the ERP.

4.2 Bank Statement Reconciliation

4.2.1 How do you perform the bank balance reconciliation? It is manual currently but would like to do it in Fusion
system as automated exercise.

4.2.2 Do you use Bank Clearing for Payments and receipt i.e. initially
the transaction is parked in the clearing account and once
reconciled with bank statement it effects the bank account code
in General Ledger?
In quick book there is no clearing but in oracle we will
you clearing for both receipts and payments.
Note: In Oracle if clearing is used, on deposit/
payments, relevant amount would be parked to Cash
Clearing Reconciliation account. Upon reconciliation,
amount would be debited/ credited to relevant Bank
Account.

4.2.3 What is normal cycle of your bank statement reconciliation Monthly for now, but we may need to do it more
frequently in the future once this process is automated.

4.2.4 How do you get bank statement? Email/ Bank Portal/ Swift/MT940

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No. Questions Answers Gap

4.2.5 Do you need automatic bank statement reconciliation? Yes.

Outflow ➔ Cheque Book / wire transfer reference

Inflow ➔ Wire transfer/ Customer name, amount,

unique reference, Online NI payment gateway
(Payment reference)

4.2.6 Can you get bank statement in MT940 Format to enable We can download MT940 format from bank portal.
automatic bank statement reconciliation Please provide us sample MT940 bank format for all the
applicable bank accounts.

4.2.7 Are tolerances required for Auto Reconciliation? If yes, please No Tolerance.
provide value for Days, Amount and Amount % tolerance.

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Manage Bank Statements & Reconciliation in Oracle Cash Management
Cash Manager can perform the Manage Bank Statements process flow which includes below processes

• Processing Electronic Bank Statements

• Enter Bank Statements
• Auto-Reconciliation
• Manual Reconciliation

Processing Electronic Bank Statements

When Banks send the statements in electronic format (following cloud provisioned formats - BAI2/ SWIFT MT940/ EDIFACT FINSTA/ ISO200022
CAMT053), Cash manager loads the files to cloud and imports the bank statements for further reconciliation purposes. The files can be pushed
to an SFTP server by Banks so that the banks statement import can be triggered to pick these files for import.

Enter Bank Statements Manually

If Banks send the statements in a paper or in a format not supported, Cash Manager would manually enter the statement in Bank Statements’
page or using excel based upload and takes it through reconciliation process.

Bank Statement Auto-Reconciliation

Automatic Reconciliation uses the reconciliation rule set assigned to the bank account to reconcile bank statement lines and system transactions.
Use auto reconciliation to process a large volume of bank statements or to automate the reconciliation process. An exception occurs when the
reconciliation program cannot find a system transaction to match with a particular bank statement line. The exceptions are presented to you in
the context of the bank statement line so the appropriate matching system transaction can be selected and reconciled.

Bank Statements Manual Reconciliation

Manual bank statement reconciliation involves selecting bank statement lines and system transactions to be reconciled together. During
reconciliation if a system transaction has not been cleared the reconciliation process clears the transaction first, and then reconciles it. Oracle
Fusion Cash Management supports manual reconciliation for all matching scenarios (one to one, one to many, many to one, and many to many)
and allows you to reconcile across bank statements from the same bank account. Review the Bank Statement Report to verify the balance and
transaction information for bank statements. Review the Cash to General Ledger Reconciliation Report to reconcile bank balances to general
ledger cash balances.

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Bank Statement Uploading – Oracle Process Overview
Legend:
Process owner(s) Accounts Department
Manual process Data Manual Document
Oracle Fusion Cash Management, Oracle Fusion Accounts
System Receivables and Oracle Fusion Payables Decision Start / End Database

Process Bank Statement Uploading Document System Process Validation

Title: Bank Statement Uploading

Start

Receive Bank
Statments

MT 940 / BAI 2
No Yes
Format?
Cash Management

Manually Create /
Upload Bank
Upload Using Excel
Statement
Spreadsheet

End Fetch Load and

Bank Import
Statments

Manage Fetch and

Errors? Yes
Load Errors

No

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Bank Statement Reconciliation – Oracle Process Overview
Legend:
Process owner(s) Accounts Department
Manual process Data Manual Document
Oracle Fusion Cash Management, Oracle Fusion Accounts
System
Receivables and Oracle Fusion Payables Decision Start / End Database

Process Bank Statement Reconciliation Process Document System Process Validation

Title: Bank Statement Reconciliation Process

Bank
Statements
Upload Bank
Start
Statements

Run Auto Bank

Reconciliation Statments
Program
Cash Management

Manually
Are All Lines
No Reconciled Pending
Reconciled?
Lines

Yes

Create Charges /
Review Results Income
Transactions

End

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5 Reporting Requirements
5.1 Reports and Related Formats
5.1.1 Please enclose a list of all reports used in Cash Management Will check and share. However, we need following
area Please annotate the report list with each report's reports;
name/number, description, the type of users, frequency on
which these reports are generated. − Bank Reconciliation Statement
− Cash Flow report

Format for above reports will be shared.

6 Miscellaneous
6.1 What else needs to be discussed?

Petty cash is of two types:

6.1.1 Please explain your petty cash Process?
1. Fixed Float Petty cash: to handle office related
small expenses as per petty cash policy.
2. Media Production related to Petty cash: this is
agreed and processed on project basis,
amounts can be material in this case, this part
has to be managed in the project
management module.

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Application Configuration Questionnaires

Application Configuration Questionnaires

Note: This section to be filled by the consultant in coordination with the client.

S.NO Internal Question Answer Status

Reference

AC:1 CE: 1.1 How many Banks do you have? Please Refer to Master Data Templates
provide your bank count considering
your customer and supplier data as
well?

AC:2 CE: 1.2 How many Bank branches do have? Refer to Master Data Templates
Please provide the bank branches
count considering your customer and
supplier data as well?

Note: Supplier and customer bank

and bank branches are required to be
created in oracle so that they can be
assigned to them.

AC:3 CE: 1.3 Please provide bank account(s) Refer to Master Data Templates
related to each business unit and
legal entity.

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Open and Closed Issues

Open Points
ID Issue Description Status Responsibility Target Date Impact Date

5.1.1 Reporting Pack to be shared Open Mr. Farid

Closed Points
ID Issue Resolution Responsibility Target Date Closed Date

Gap Log
ID Gap Description Provided Solution Response Status

Design Feedback
ID Feedback/Comments Received From Appslink Response Status Received Closed
Date Date

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