A company is a party that initiates deals and that can run an in-house bank. You must create at least one company profile before you can begin using Treasury.
You can set up as many company profiles as you want. For example, if your company has a subsidiary and you want to track the treasury positions of that subsidiary, you can also set up that subsidiary as a company.
A company profile associates your treasury department with a ledger. It also defines your company bank accounts, the companies or counterparties who you grant debit authority on your bank accounts, and your principle contacts.
Use the Company Profiles window to set up your company treasury department. You can also use this window to set up any of your subsidiaries of whose positions you want to track.
Set up Legal Entities. For more information, see: Setting Up a Multiple Organization Enterprise.
Set up Banks. For more information, see: Bank Account Setup.
Set up Bank Branches. For more information, see: Bank Account Setup.
Set up the banks that hold the accounts of your company as parties in the Counterparty Profile window and link them to bank branches created in Cash Management. See: Counterparty Profiles.
Set up the currencies of your bank account. See: Currency Details.
In the Company field of the Company Profiles window, enter a unique code for the company.
If you want the company to be the default company in Treasury, enable the Default check box.
In the Legal Entity field, select the legal entity that the company belongs to. You can associate only one legal entity with each company.
A legal entity is associated with a ledger. The journal entries for the company are created using the accounts that are assigned to the ledger that are associated with the legal entity. For more information, see: Setting Up a Multiple Organization Enterprise.
The Ledger field is automatically populated based on which legal entity you select. The Currency field is also automatically populated.
In the Short Name field, enter a short name for the company. This short name is used in lists of values and reports throughout Treasury.
In the Full Name field, enter the full legal name of the company.
Save your work.
Use the Address tab region of the Company Profiles window to set up the address information for your company. The company's address information appears in EFT payment output files. For more information, see: EFT Payment Files.
In the Address tab region, enter the contact information for the company contact person. The contact information can include the contact person's title, name, phone number, fax number, email address, and mailing address.
Use the Bank Accounts button on the Address tab region of the Company Profiles window to access Cash Management pages to set up your company bank accounts. You can set up multiple bank accounts for each currency that the company uses. The owner of the bank account in Cash Management must be the legal entity that is linked to your Treasury company. For more details on bank account set up, see: Bank Account Setup.
Note: Before you can set up a company bank account, the bank that holds the bank account must be set up in Cash Management, a bank branch must be defined for this bank in Cash Management, and a counterparty must be set up in Treasury and linked to a bank branch in Cash Management. Otherwise, Treasury use check box will be disabled when you start creating a bank account in Cash Management.
Use the Settlement Contact tab region of the Company Profiles window to set up the contacts that your company uses to perform settlements. You can set up a settlement contact for each currency or for each settlement account.
In the Contact Name field, enter the name of the contact.
In the Currency field, choose the currency that the contact is responsible for settling.
In the Title field of the Settlement Contact tab region, enter the title of the person that performs settlements.
In the Account Num field, enter the name of the settlement account that the contact is responsible for settling.
In the remaining fields, enter the phone number, fax number, telex number, and email address for the settlement contact.
Save your work.
Use the Deal Contacts tab region of the Company Profiles window to set up the contacts that your company uses for each deal type. You can set up a deal contact for each deal type, deal subtype, product type, and currency combination.
In the Deal Type field of the Deal Contacts tab region, choose the deal type that the contact manages.
In the Deal Subtype field, choose the deal subtype that the contact manages.
In the Product Type field, choose the product type that the contact manages.
In the Currency field, choose the currency that the contact manages.
In the Name field, enter the name of the contact.
In the other fields, enter the title, phone number, telex number, fax number, and email address for the contact.
Save your work.
Use the Debit Authorities tab region of the Company Profiles window to set up the parties that have debit authority on your company bank accounts. For example, if you want to set up automatic payments between your company and your bank, you can select your bank as a counterparty with debit authorities on a specific company bank account.
In the Company Account field of the Debit Authorities tab region, choose the bank account for which you want to give debit authority.
In the Counterparty field, choose the counterparty who you want to allow debit authority on the bank account. The Counterparty Name field is automatically populated.
Save your work.
Use the Parameters tab region of the Company Profiles window to set up the parameters for revaluation and accounting rules that apply to your company. The following table lists the company parameters, describes the available values, and indicates the default values, if any.
| Parameter | Value | Description |
|---|---|---|
| Accounting - Perform Deal Revaluation | Yes (default) or No. | Determines whether or not your company must perform Revaluations as part of the accounting process. Choose Yes if you want the company to perform revaluations. Choose No if you do not want the company to perform revaluations. |
| Accounting - Perform Hedge Effectiveness Testing | Yes or No (default). | Determines whether or not your company must perform hedge effectiveness testing, after performing Revaluation. Choose Yes if you want the company to perform effectiveness testing. Choose No if you do not want the company to perform effectiveness testing. |
| Accounting - Exchange Rate Type | Spot, Corporate, or custom defined rate type. | Sets the default General Ledger daily exchange rate used by the company. |
| Accounting - Journal Transfer Method | Summary (default) or Detail | Sets the default method the company uses to transfer their journal entries to General Ledger. If you choose Detail, the transaction details are transferred to General Ledger. If you choose Summary, summary amounts are calculated and transferred to General Ledger. |
| Accounting - Journal Transfer in Closed Period | No Change (default) or Next Open | Sets the default method the company uses to handle journal entries that fall into a closed period. If you choose No Change, the transaction details are left as is and are transferred to General Ledger. You must resolve any errors that occur in General Ledger. If you choose Next Open, the journal entries are placed in the next open period and then transferred to General Ledger. |
| Accounting - Allow Unbalanced Journal Transfer | Yes (default) or No | Determines whether or not the company wants to allow users to transfer unbalanced journals to General Ledger. If you choose Yes, the Treasury Journal Transfer process leaves the Treasury journals date unchanged, but transfers to the GL Interface Table the start date of the next open GL period. |
| Accounting - Suspense Account | Custom defined suspense account | Sets the default suspense account used the company uses for suspense journals. |
| Accounting - Trade/Settlement Date Method | Settlement Date Accounting (default) or Trade Date Accounting | Determines which deals are eligible to be selected for revaluation and accrual processes. For example, if the parameter is set to Settlement Date Accounting, a deal whose settlement date falls after the revaluation batch end-date is not revalued. If the parameter is set to Trade Date Accounting, the trade (deal) date of your deals is compared against the batch end-date when determining if they are to be included in the batch or not. |
| External - Subscriber FX Match ID | Unique, user-entered, subscriber ID | If the company uses a service provider to reconcile foreign exchange settlements between the company and its counterparties, use this parameter to enter the company's FX Match ID. For example, FXAB-12345. |
| Interest - Interest Includes | Both Days, First Day, or Last Day | Determines the number of days to be used in the interest calculation. The default Interest Includes parameter for your company's deals is populated based on your selection here. Day counting options include:
Note: First Day and Last Day produces the same interest amount at the time of deal entry; however, with accruals, they may provide different accrual amounts depending on the accrual batch period selection. |
| Interest - Interest Rounding | Nearest, Round Down, or Round Up | Determines the rounding method to be used in interest calculation. The default Interest Rounding parameter for your company's deals are populated based on your selection here. |
| Revaluation - Default Market Data Set | Default Set (default) or custom defined set | Sets the default market data set that the company wants to use for revaluation purposes. |
| Revaluation - Future Dated NI Deal Revaluation | Exclude (default) | This parameter is dependent on the Accounting - Trade/Settlement Date Method parameter. It determines the method the company wants to use to discount negotiable instrument deals with future dated settlement transactions (deals that have a settlement date after the current system date or revaluation date). If the Trade parameter is set to Settlement, then this parameter should be set to No Revaluation before Settlement Date. If the Trade parameter is set to Trade, then this parameter should be set to either Yes Revaluation before Settlement Date to Settlement Date, or to Yes Revaluation before Settlement Date to Revaluation Date. |
| Revaluation - FRA Discount Method | Physical Start Date or Revaluation Date | Determines which date the company wants to use to discount Forward Rate Agreement deals to calculate gain or loss. You can choose to discount to the deal's physical start date, or to the deal's revaluation date. |
| Revaluation - FX Discount Method | Settlement Date or Revaluation Date (default) | Determines which date the company wants to use to discount foreign exchange deals to calculate fair value. You can choose to discount to the deal's settlement date or to the revaluation date. |
If you use settlement scripts to provide payment instructions to your bank either in a report or an EFT output file, use the Settlement Scripts tab region of the Company Profiles window to authorize the scripts. You can set up settlement scripts for an individual currency or all currencies that the company settles.
Navigate to the Settlement Scripts tab region.
In the Script Name field, enter a name for the script.
In the Currency field, choose the currency that you want to use for the settlement script, or leave blank to use with all currencies.
In the Script Type field, choose the type of script: Report or EFT Script. Choose Report if you want to use a printed report that can be sent to banks to settle deals. Choose EFT Script if you want to use standard payment formats or a custom developed script for electronic funds transfer. For more information, see: EFT Payment Formats.
In the Procedure Name field, select the procedure to determine the payment format method for your settlement script.
If you selected EFT Script and if you are going to use the payment transmission process in Oracle Payments, select a value in the Payment Transmission Name field.
To authorize the script for use, check the Auth check box. If you do not authorize the script you cannot access the script.
Save your work.
If you want to generate reports or payment output files for your settled deals, you must set up company settlement scripts and then assign the scripts to a bank account.
In the Settlement Scripts tab region, define the scripts to be associated with a currency. For more information, see: Setting Up Settlement Scripts.
On the Cash Management Bank Account page, create or query an existing bank account. For more information, see: Setting Up Company Bank Accounts.
Navigate to the Account Access page and choose Treasury Access Options.
Select the settlement script name in the Settlement Script field. The list of values provides the settlement scripts that have the same currency as the bank account.
The settlement script that you select is used to generate payments for any settlement associated with this bank account.
Note: Settlement scripts without a currency specified can be associated with any bank account.