Setting Up Cash Management System Parameters

To setup system parameters in Oracle Cash Management
Navigation- Setup/System Parameters

First choose a set of books from the list of values. Then enter the begin date: This date must be backdated far enough to cover any transactions that will appear in the bank statement. It is generally safe to calculate that the date of the first statement will not contain entries earlier than its own date for instance, a check may be issued on May 20, but cashed on June 5th. If system begin begin date was dated June 1, Cash Management would recognize it. The system only recognizes the transaction date of the bank record, not our Payable or Receivable transaction date. Next, if you want to see cleared transactions that are available for reconciliation, check show cleared Transactions. If we want to reserve the ability to add lines to a statement that is loaded automatically, not manually, check Add line to Automatic Statements. If Bank statements will be loaded through the interface instead of loaded manually, check Use Open Interface. Large statements should be loaded through the interface to maximize the functionality of the program.

Next go to the General alternative region. Select the matching order for both Payables and Receivables. We have two choices : Transaction or Batch. If our system only requires reconciliation at the batch level, then select Batch otherwise select Transaction. This is how cash management will search the statement lines in order to match them up during Auto Reconciliation. Next enter the tax codes. These codes are used when there are differences in the bank statement associated with VAT. If the transactions are in dollars , select standard ; otherwise select a VAT code to represent the liability and assets for miscellaneous payments and miscellaneous receipts. When we select a Receivables activity for a transaction line, a default General Ledger account is automatically associated with the transaction line. Select an activity in the system parameters from to change the differences between the original amount and the cleared amount. This is usually a clearing account, a bank charges account, or a miscellaneous costs account. The last field in the region is Float Handling. This determines if the transaction's effective date is later than the system date and whether Oracle Cash Management should ignore the transaction or mark it as an error. We have two options Error and Ignore. Cash Management will allow reconciliation of lines with postdated transaction dates for the ignore option.

Once completed the General Alternative region, change the alternative region to Automatic Reconciliation. The settings in this region will not have any effect on manually reconciled statements, only automatic reconciliation. Choose the amount and percentage of variance with Cash Management to match statement lines to available transactions in the tolerances fields. The Amount field is a specific dollar amount of either the statement line or the transacting line. The percentage field also sets the tolerance on either the statement line or the available transactions. Next, enter the tolerance differences fields. In the AP field, select charges or errors. Charges will send the differing amount from the General Ledger to the charge account setup in payables. Errors will not send the differing amount to the General Ledger, but will cause the reconciliation to error out. In the foreign field, we can select gain/loss, charges/errors or No action. Differences will be posted to the General Ledger as a Gain/Loss, Bank Charge, or Bank Error. No action means that this item will not reconcile; it will display a status error. We may select to purge from the interface once the statement is transferred by checking purge. We may also select automatic archiving of the statements from the interface tables by checking archive. We must archive if you purge. The lines per commit field determines how many lines Oracle Cash Management should process before committing. Set the lines per commit field to a low number 5 or less. This prevents the system from stalling while processing large statements during Auto Reconciliation.