Cash is any company’s most important asset.
Controlling and overseeing money is one of the most significant regions that an organization needs to concentrate on.
Cash Management coordinates money exchanges from different sources like receivable, Payables, treasury, and creates reconciliation accounting entries after coordinating with transactions from bank statements.
It provides the ability to match transactions automatically to bank statements lines (recoiled), left out (unreconciled). Reconciliation includes following steps:
- Receiving bank statements
- Loading and verifying bank statements
- Perform reconciliation
- Reviewing of results
- Creating journal entries and post to the general ledger.
The cash flow timeline is the total span of time right from the beginning of the first phase of the operating cycle when the resource is purchased until the last step when receipt is collected.
Cash management ensures liquidity and efficient use of cash resources by having sufficient cash on hand at the right time in order to invest in core business operations and upgrade the working capital positions. It also helps you to implement explicit segregation of duties.
Now coming to the main topic, what is Oracle Cash Management?
Oracle cash management is an organization cash management solution that provides you with an arrangement for effectively manage and control of one’s cash cycle. It provides an exhaustive bank reconciliation and adaptable money estimating. It provides various facilities like creating, viewing, and updating cash pools, generate cash positions and forecasts cash in order to effectively manage cash cycles.
Oracle cash management has the following components:
- Oracle payables
- Oracle payroll
- Oracle receivables
- Oracle treasury
- External systems
- Oracle general ledger
Oracle provides different forms of invoices according to the customer’s convenience such as standard, prepayment, expense report, mixed invoice, credit invoice, debit invoice.
There are two types of bank statement reconciliation provides the oracle cash management system.
Automatic – In these Bank details are automatically matched and reconciled with system transactions. There is no need for manual input/work in this and is more efficient as well as time-saving.
Manual – In this method manual matching of bank statements is required. In this one has to match every bank statement with the system transaction and this can be very tedious at times.
How to set up oracle cash management?
One has to first select create a bank option from the bank account creation.
In order to set up one should follow the following steps:
Navigation Setup Banks
A web page is popped up where the customer has to fill the required details and then click on create option. Then the customer has to enter bank address and bank contact details and then click on the finish option.
An account can be created by clicking on create accounts and then fill the bank account owner name and then fill the required details like account name, account number, account type, currency, etc. and then click on continue to fill all the details which are mandatory and then click on the finish after filling in all the details.
In order to clear unclear transactions
Bank statements Manual clearing clear transactions. Select the transactions to be cleared and then press clear transactions.
The work area identifies the current cash balance, unexpected variations or issues with accounts that don’t have statements. The work areas are available in several offerings besides having cash management which includes payables, receivables, billing, fixed assets, suppliers, and expenses.
It has a Task menu that allows one to execute related tasks within one’s functional works area.In brief, Oracle cash management provides an efficient system of collection and payment and enables efficient funds planning by optimum use of resources at the same time-saving cost, time, and effort. There is no prerequisite for using the oracle cash management system except for the fact that one should have its own bank account in an actual bank. The bank and the branch information will be stored in the trading community model (TTM) tables and the account details will be stored in the cash management table.