Bank Transfers

Objectives After completing this lesson, you should be able to do the following: Set up bank transfers Create a bank transfer Settle a bank transfer Create a bank account transfer template

Agenda Overview Setting up bank transfers Bank transfers process flow Creating a bank transfer Authorizing a bank transfer Integrating with Payments Creating journal entry rules Setting up transaction subtypes Setting up payment templates

Overview Bank Transfers Bank 2 Bank 1 Overview Bank account transfers represent fund transfers between internal bank accounts. Bank account transfers can be done either manually or automatically. The access to bank account transfer creation for a particular legal entity is subject to bank account use security. The bank account transfers are reflected in Cash Position automatically. Payment processing for bank account transfers is managed using Oracle Payments. Journal entries are created through a centralized subledger accounting engine. From the point of view of bank account ownership, you can either do a Intra-Company bank transfer or a Inter-Company bank transfer. Intra-company transfers represent cash transfers between two internal bank accounts that belong to the same legal entity, while Inter-company transfers represent cash transfers between two internal bank accounts that belong to two different legal entities. In case of such transfers, the system can produce balanced journal entries for both legal entities. And from the point of view of transfer currency, you can either do a Domestic bank transfer or an International bank transfer. In Domestic bank transfer, the currency of both bank accounts and the transfer amount is the same. For example, you are transferring USD between two bank accounts that are denominated in USD. In International bank transfer, The currency of one bank account is the same as the currency of the transfer amount but the currency of the other bank account is different. For example, you are transferring USD from a bank account denominated in USD to the bank account denominated in EUR. Bank Transfers

Setting Up Bank Transfers Before creating a bank transfer, set up the following options: Set CE: Bank Account Transfers profile option Set up transaction subtypes Set up payment templates Setting Up Bank Transfers Before creating a bank transfer, complete the following steps: 1. Navigate to the Profile Options page using Other: Profile menu. 2. Search for CE: Bank Account Transfers profile. 3. Select Cash Management and select OK. 4. Set up transaction subtypes. 5. Set up payment templates.

Bank Transfers Process Flow A Bank Transfer process flow would include the following: For cash leveling, zero balance accounts are required. Creating, approving, settling, and accounting for bank transfers are done in order. Transfers are possible within or between LEs Transfers can be done manually or automatically.

Creating a Bank Transfer You can create bank account transfers manually or automatically through Cash Leveling process and/or Sweep Transactions Generation concurrent program. Creating a Bank Transfer To create a bank transfer, complete the following setup steps: 1. Navigate to the Bank Account Transfers page under the Cash Management, Vision Operations (USA) responsibility. 2. Click Create. 3. Enter the bank account transfer information. Note: If you select a payment template, the bank account transfer attributes defined at the template level will default in automatically. 4. Click Apply. Note: If you would like to validate the bank account transfer at the same time as saving it, click Apply and Validate. The bank account transfer will be available for further processing such as manual authorization, payment and journal creation only after it has been validated. Refer to Practice – Create a Bank Transfer [LAB3F6DY]

Authorizing a Bank Transfer If you would like another user to approve the bank account transfer before it is processed for payment and/or journalized, you can set up the manual bank account transfer authorization parameter.. Authorizing a Bank Transfer To authorize a bank transfer, complete the following setup steps: 1. Navigate to the Bank Account Transfer Authorization page under the Cash Management, Vision Operations (USA) responsibility. 2. Select the bank transfers from the displayed list and click Authorize Transfers. Note: If the transfers requires payment processing, they will now be automatically sent to Oracle Payments. If they do not require payment processing, they will now be available for journal creation.

Integrating with Payments Bank account transfer payment instructions can be communicated to the bank electronically through Oracle Payments. When a bank account transfer that requires settlement is authorized in Oracle Cash Management, a payment process request is automatically created in Oracle Payments. Integrating with Payments Note: If the payment is successfully processed in Oracle Payments, the status of the bank account transfer will be automatically set to Settled. If the payment is not successfully processed, the status of the bank account transfer will be automatically set to Failed and may require the user's intervention to recreate the transfer.

Creating Journal Entry Rules Cash Management supports both automatic and manual creation of journal entries, as well as maintenance of those journal entries using the Oracle Subledger Accounting. Creating Journal Entry Rules Create journal entries for eligible accounting events generated by Bank Account Transfers and Bank Statement Cash Flows by submitting Create Accounting concurrent program. The program creates and, optionally, transfers and posts journal entries to General Ledger. If you do not transfer the journals to General Ledger immediately, you can later submit Transfer Journal Entries to GL concurrent program. In addition to creating final accounting entries, the program can be run in a draft mode, in which case draft journal entries will be created. Such journals cannot be transferred or posted to General Ledger. You can transfer automatically created journal entries to General Ledger at the same time as you execute Create Accounting concurrent program. However, if have not done so or if you have created manual journals, you can submit Transfer Journal Entries to GL concurrent program. Once the journals are created, you can view them in the transaction windows in Oracle Cash Management. Similarly, you can drill down from the journal entry in Oracle General Ledger to the source transaction in Oracle Cash Management.

Setting Up Transaction Subtypes Cash Transaction Subtypes allows you to categorize cash flows for reporting purposes: Assign transaction subtypes to either Bank Account Transfers or Bank Statement Cashflows. You can also build a hierarchy between the subtypes by entering a subtype parent name. Setting Up Transaction Subtypes To set up a transaction subtype, complete the following setup steps: 1. Navigate to the Cash Management Subtypes page under the Cash Management, Vision Operations (USA) responsibility. 2. Click Create. 3. Enter a Subtype Name. 4. Click Apply. Refer to Practice – Set Up a Transaction Subtype [LAB3F6EY]

Setting Up Payment Templates Payment templates allow defining reusable sets of bank account transfer attributes and payment processing options: During bank account transfer creation. you have an option to select a payment template, which defaults all the attributes of the payment template into the bank account transfer. If you are using repetitive payment codes or repetitive wire codes, you can define those as payment templates. Setting Up Payment Templates To set up a payment template, complete the following setup steps: 1. Navigate to the Payment Templates page under the Cash Management, Vision Operations (USA) responsibility. 2. Click Create. 3. Enter payment template attributes on General Details and Payment Details tabs. 4. Click Apply. Refer to Practice – Set Up a Payment Template [LAB3F6FY]

Summary In this lesson, you should have learned how to: Set up bank transfers Create a bank transfer Settle a bank transfer Create a bank account transfer template