There are two major process steps you need to follow when reconciling bank statements:
Load Bank Statements: You need to enter the detailed information from each bank statement, including bank account information, deposits received by the bank, and payments cleared. You can enter bank statements manually or load electronic statements that you receive directly from your bank. See: Entering Bank Statements Manually and Loading Bank Statement Open Interface.
Reconcile Bank Statements: Once you have entered detailed bank statement information into Cash Management, you must reconcile that information with your system transactions. Cash Management provides two methods of reconciliation:
Automatic- Bank statement details are automatically matched and reconciled with system transactions. This method is ideally suited for bank accounts that have a high volume of transactions. See: Reconciling Bank Statements Automatically.
Manual- This method requires you to manually match bank statement details with system transactions. The method is ideally suited to reconciling bank accounts that have a small volume of monthly transactions. You can also use the manual reconciliation method to reconcile any bank statement details that could not be reconciled automatically. See: Reconciling Bank Statements Manually.
During the reconciliation process, you can create miscellaneous transactions for bank-originated entries, such as bank charges and interest. You can also manually enter Payables payments or Receivables receipts. The automatic reconciliation process can be set up to create miscellaneous transactions automatically.
When you reconcile a transaction, the transaction is first matched to bank statement details and then cleared (if uncleared). Alternatively, you can manually clear Payables payments, Receivables receipts, miscellaneous transactions, open interface transactions, and Cash Management cashflows (except for those created from bank statement lines) in Cash Management prior to reconciliation to maintain more up-to-date cash account balances. You can also use Automatic Clearing to clear receipts in Oracle Receivables.
When you clear a transaction, Cash Management assigns a cleared date, cleared amount, and status to the transaction. Accounting for the cleared transaction varies by the source. If the transaction is a payment, Payables records the accounting information but you create the accounting entries in Payables. If the transaction is a receipt or a miscellaneous transaction, Receivables automatically generates the accounting entries. If the transaction is an open interface transaction, you must customize the CE_999_PKG package to implement reconciliation accounting. You cannot clear Payroll payments, General Ledger journal entries, or Treasury settlements.
Once you have completed the reconciliation process, we recommend that you review your reconciliation results. You can review the reports that are printed automatically from the AutoReconciliation program. You can also use the following reports:
Bank Statement Detail Report
Bank Statement Summary Report
Bank Statements by Number Report
You can create accounting entries for Payables accounting events in two ways:
Submit the Payables Accounting Process.
Create accounting entries for a single transaction or batch.
After the process completes, Payables produces the Accounting Entries Audit Report and Accounting Entries Exception Report. The exception report lists transactions that could not be accounted because of invalid or missing information.
Define Payables options for accounting information.
Open the period in Payables.
If you use Multiple currencies, then all foreign currency transactions require exchange rates. You can enter exchange rates manually, or submit AutoRate to automatically enter exchange rates for invoices and payments without exchange rates.
If you use future dated payments, update the status of matured future dated payments to Negotiable.
To account for invoices, they must be validated.
To account for payments, the invoices must already be accounted, or you must choose the All parameter to account for invoices, and then payments.
Submit and review the Unaccounted Transactions Report to identify and resolve issues with your transactions that will prevent accounting.
After you create accounting entries in Payables, submit the Payables Transfer to General Ledger program to send invoice and payment accounting entries to the general ledger interface.
If you use Oracle General Ledger, then you can submit Journal Import, which uses the data in the GL interface to create unposted journal entry batches, headers, and lines. You can then post these journal entry batches, headers, and lines within General Ledger to update your General Ledger account balances. You can submit Journal Import either when you submit the transfer program, or separately, after the transfer process completes. See: Importing Journals.
If you do not use General Ledger, you can use the data in the GL interface to create and post journal entries in your general ledger.
Payables retains the accounting entries, so you can continue to review them in Payables. Also, after you post journal entries in Oracle General Ledger, you can drill down to the related accounting entries or transactions in Payables.