1. Cash Positioning

2. Objectives After completing this lesson, you should be able to do the following: Create cash position worksheets Generate cash positions from worksheets Generate a cash leveling proposal View cash position results Export cash position results to your spreadsheet application View cash positions in Discoverer

3. Agenda Overview Creating Cash Position Worksheets Generating Cash Positions from Worksheets Generating a Cash Leveling Proposal Viewing Cash Position Results Exporting Cash Position Results to Your Spreadsheet Application Viewing Cash Positions in Discoverer

4. Overview Cash Positioning is a planning tool that helps you: Project your cash needs View your daily cash position by currency or bank account Evaluate your company’s liquidity position

5. Creating Cash Position Worksheets Default Cash Position Worksheet includes the default values for the Bank Account Balance, Intra-Day Activities, and all transaction sources except for the User- Defined and Open Interface sources Default Treasury Cash Position Worksheet includes the default values for the Bank Account Balance, Intra-Day Activities, Treasury Inflow, and Treasury Outflow sources

6. Creating Cash Position Worksheets: Source Transaction Dates TypeExpected Cash Activity Date or Time Supplier Payments Value Date (Actual then Anticipated), Maturity Date, or Payment Date Payroll ExpensesPayment Date Customer Receipts Value Date (Actual then Anticipated), Maturity Date, or Latest Receipt Transaction Date Treasury InflowSettlement Date Treasury OutflowSettlement Date Intra-Day Activities Value Date, or Statement Date

7. Creating Cash Position Worksheets: Overdue Transactions TypeDenition Supplier PaymentsPayments scheduled to clear before the position date, but still uncleared Customer ReceiptsReceipts scheduled to clear before the position date, but still uncleared Treasury InflowTreasury transactions scheduled to clear before the position date, but still uncleared Treasury OutflowTreasury transactions scheduled clear before the position date, but still uncleared

8. Generating Cash Positions From Worksheets contains rows that define transaction sources and columns that display either currencies or bank accounts included in the cash position Cash Position Worksheet

9. Generating Cash Positions From Worksheets (continued) Calculation Of Opening and Closing Bank Account Balances in Cash Positioning Opening bank account balance = Previous day’s closing bank account balance for that bank account Closing balance = Opening Balance + Prior Day Cash Flows + Net Cash Flow

10. Generating Cash Positions From Worksheets (continued) Bank Account Definition Location Bank Account Balance Source Banks window in Oracle Payables Latest bank statement closing balance (Cash Management Bank Statement tables) Company Profiles window in Oracle Treasury Oracle Treasury’s Bank Account Balance tables Shared between Oracle Payables and Oracle Treasury Latest available balance (Cash Management Bank Statement tables/Oracle Treasury Bank Account Balance tables

11. Generating Cash Positions From Worksheets (continued) Balance Gapping in Cash Positioning Negative balance Not knowing when you will receive sufficient funds to pay off part or all of the loan Positive balance Invest the money Not knowing when you will need part or all of the money to cover future obligations

12. Generating a Cash Leveling Proposal For notional cash pools and physical cash pools with bank initiated sweeps: approximates the projected closing balance of the concentration account, the basis of investment or funding decisions For physical cash pools without bank initiated sweeps: used to generate Intercompany Funding Transactions and/or Inter-Account transfers to be included in the payment file and sent to the bank through Oracle Treasury. Advantages For physical cash pools without bank initiated sweeps: used to generate Intercompany Funding Transactions and/or Inter-Account transfers to be included in the payment file and sent to the bank through Oracle Treasury.

13. Generating a Cash Leveling Proposal (continued) transfer amount = difference between the closing balances on the sub accounts cash position and the nearest target balance [if the projected balance is outside of the target range, adjusted for the rounding factor, rounding rule, and minimum receipt/ payment amount] transfer amount = difference between zero and closing balances on the sub accounts cash position Notional Cash Pools Physical Cash Pools

14. Viewing Cash Position Results View balances, (net) cash flows, and the difference between the projected closing and target balances by currency. Modify CP results by modifying parameter values. Drill down to source transaction details by clicking on an amount. Drill down to intra-day activities details by clicking on the intra-day activities amount. Cash Position Results: Currency View Page

15. Viewing Cash Position Results (continued) View balances, (net) cash flows, and the difference between the projected closing and target balances by bank account. Modify CP results by modifying parameter values. Cash Position Results: Bank Account View Page Drill down to source transaction details by clicking on an amount. Drill down to intra- day activities details by clicking on the intra-day activities amount.

16. Exporting Cash Position Results to Your Spreadsheet Application Excel spreadsheet Export button

17. Viewing Cash Positions in Discoverer Cash Position with Surplus/ Deficit Customer Receipts Worksheet Cash Position with Closing Balance Payroll Expenses Worksheet Cash Position with Surplus/ Deficit using Calculated Prior Day Cash Flow and Overdue Transactions Cash Position with Closing Balance using Calculated Prior Day Cash Flow and Overdue Transactions Gapping Details WorksheetTreasury Transactions Worksheet Supplier Payments WorksheetIntra-Day Activities Worksheet Worksheets in One Predefined Workbook

18. Summary In this lesson, you should have learned how to: Create cash position worksheets Generate cash positions from worksheets Generate a cash leveling proposal View cash position results Export cash position results to your spreadsheet application View cash positions in Discoverer