Overview

Oracle Cash Management is an enterprise-wide solution for managing liquidity and controlling cash.

Features

Bank Account Model

Shared Service approaches to disbursement and collections are enhanced by the deployment of Oracle Cash Management’s new Bank Account model. Overall, the set up, maintenance, and control of all internal bank account information is much easier and more reliable with this new feature. It provides a single access point for defining and managing internal bank accounts for Oracle Payables, Oracle Receivables, Oracle Payroll, Oracle Cash Management, and Oracle Treasury. Bank account access for each application is explicit for internal security and control purposes. Each account is associated with a Bank and Bank

Branch defined in Oracle’s common Trading Community Architecture (TCA). A single Legal Entity is granted ownership of each internal bank account. One or more Organizations are granted usage rights, which provides significant benefits in key areas like reconciliation that previously required managing multiple account records for these types of purposes. Additionally, reconciliation options can now be defined at the bank account level, providing even more flexibility and control of that process.

Multi-Org Access Control

Multi-Org Access Control enables companies that have implemented a Shared Services operating model to efficiently process business transactions by allowing them to access, process, and report on data for an unlimited number of operating units within a single applications responsibility. This increases the productivity of Shared Service Centers for users no longer have to switch applications responsibilities when processing transactions for multiple operating units at a time. Data security is still maintained using security profiles that are defined for a list of operating units and determine the data access privileges for a user.

Support for Shared Services, and related Multi-Org Access Control features, is available in Oracle Cash Management. This set of features greatly enhances processing and reporting efficiency for Oracle Cash Management users. Please, refer to the full feature descriptions in the Multi-Org Access section of this document for more details.

Sub ledger Accounting

Oracle Sub ledger Accounting provides tools that allow users to meet External Reporting (IAS.IFRs, US GAAP, etc.), corporate management, and national fiscal accounting requirements. With a flexible tool called Accounting Methods Builder, users can determine the accounts, lines, descriptions, summarization, and dates of their journal entries. Users can also add detailed transaction information to journal headers and lines. Detailed sub ledger accounting journals are available for analytics, auditing, and reporting. They are summarized, transferred, imported and posted to Oracle General Ledger. For more details, please see the Oracle Sub ledger accounting section of this document. Oracle Cash Management utilizes Oracle Sub ledger accounting for setting up accounting rules and for generating journal entries related to Cash Management transactions.

Bank Account Balances and Interest Calculation

Many new bank account balance types are supported for all internal bank accounts including ledger, available, value dated, 1-day float, 2-day float, and projected balances. Users are able to track closing ledger and available balances as well as month-to-date and year-to-date averages. Flexible reporting tools are available to view all this centrally stored balance history for trend analysis as well as to compare actual versus expected balances based on daily cash position projections. Additionally, the system allows the user to verify interest amounts charged or credited by their banks based on balance history and user-defined interest rate schedules.

Bank Account Transfers

Bank Account Transfer functionality was previously supported only through Oracle Treasury. Now, bank account transfers are supported directly in Oracle Cash Management. This feature allows users to create these types of cash transfers between internal bank accounts manually or automatically through physical cash pools. The related cash flows are stored in Oracle Cash

Management for reporting purposes and are reflected in positioning. Payment processing and accounting is managed via Oracle Payments and Oracle Sub ledger Accounting.

Cash Pooling

Organizations frequently use cash pooling techniques to optimize funds by consolidating bank balances from across multiple bank accounts. By consolidating balances and minimizing idle funds, organizations may decrease external borrowing costs and increase overall investment returns. Oracle Cash Management supports common cash pooling techniques by allowing users to group bank accounts into different types of pooling structures and by managing the associated activity for either centralized or decentralized business environments. This functionality was originally made available to Oracle Treasury users in Oracle Financials Family Pack G and will now be supported via Oracle Cash Management. The following types of cash pools are supported.

Self-Initiated Physical Cash Pools

Organizations may choose to monitor individual bank account balances manually and then physically move cash to or from their accounts only as needed based on their particular preferences or objectives. Oracle Cash Management allows users to define and manage these types of bank account structures called Self-Initiated Physical Cash Pools. These pool definitions include rules to automatically determine when bank account transfers should be made and for what amounts. Users are able to review transfer proposals from their Cash Positions based on daily activity as well as target balances, minimum transfer amounts, and rounding rules. Users are able to accept or overwrite system proposed transfers, and Oracle Cash Management then generates all their bank account transfers automatically. Note: Cash Pools spanning multiple legal entities often require tracking internal loans and interest, or In House Banking. Related functionality is available for Oracle Treasury users and is described in the Oracle Treasury section of this document.

Bank-Initiated Physical Cash Pools or Zero Balance Accounts

(ZBA’s)

Organizations may choose to utilize a bank service that automatically sweeps all end-of-day balances to or from main concentration accounts. Since this type of physical cash pool arrangement typically leaves no cash in the sub accounts overnight, it is often referred to as a Zero Balance Account or ZBA relationship.

Oracle Cash Management allows users to define and manage these types of bank account structures called Bank-Initiated Physical Cash Pools. Oracle Cash Management automatically creates and reconciles all the related sweep transactions based on reported prior-day bank statement activity. Note: Cash Pools spanning multiple legal entities often require tracking internal loans and interest, or In House Banking. Related functionality will be available for Oracle Treasury users and is described in the Oracle Treasury section of this document.

Notional Cash Pools

Organizations may choose to utilize notional cash pool arrangements offered by banks that track not only individual account balances but also the net balance across all accounts. This technique is common in some countries and does not require physical cash transfers to be made between accounts for concentration purposes.

Oracle Cash Management allows users to define and manage these types of bank account structures called Notional Cash Pools. The consolidated notional account balance is calculated, and users are able to manage the net notional balance along with individual bank accounts in Oracle Cash Management.

Bank Statement Accounting

This feature allows users to define mapping rules that can automatically create and reconcile transactions in Oracle Cash Management based on reported prior day bank statement lines. Users are able to define flexible matching rules based on bank accounts, transaction codes, and text search strings. This feature significantly reduces reconciliation issues associated with repetitive first notice items like bank fees or bank account interest. The transactions generated and stored in Oracle Cash Management are available for reporting as well as for automatic reconciliation. Accounting for these transactions is managed via Oracle Sub ledger Accounting.

This feature was first released in Oracle Financials Family Pack G.

Bank Account Signing Authorities

This feature allows Oracle Cash Management users to enter, maintain, and report on those people in their organizations with bank account signing authority. Users are able to indicate single and joint signing limits for each bank account as well as signer group categories, effective dates, approval status, and other relevant information. Users are also allowed to attach electronic copies of documents like passport photos, signature files, or bank documents directly to the signing authority records. It is possible to use Oracle Workflow to route approval requests for signing authority, or users can set statuses manually. Reporting used for internal control and audit purposes is available via an Oracle Discoverer view. People with signing authority need to be defined in Oracle HRMS or via HR Foundation, if Oracle HRMS is not installed. This feature was first released in Oracle Financials Family Pack G.

Cash Positioning Intra-day Activities

This feature provides additional flexibility in how users view intra-day bank statement activity in their cash positions. It is possible to include all or portions of intra-day bank statement activity in the cash position, and these cash flows are used when calculating projected closing balances. Alternatively, the set up for cash positions still allows users to exclude the intra-day bank statement activity entirely or to include it for reference purposes against expected activity from other sources (but not include intra-day bank statement activity in the calculation of closing projected balances).