Professional Documents
Culture Documents
Training Guide
Cash and Treasury Training Exercises
Table of Contents
Oracle AGSS Contacts...................................................................................................... 1
Required Set Up.................................................................................................................4
Cash (Liquidity) Management........................................................................................20
Common Transaction Types...........................................................................................56
Process Transactions....................................................................................................... 97
Reporting........................................................................................................................ 119
Page iii
Training Guide
Cash and Treasury Training Exercises
Procedure
John Killen
Global Solution Architect
Oracle Cash Management and Treasury
Northern California Office
+1-415-290-6960 (cell)
+1-530-587-3377 (home office)
john.killen@oracle.com
John joined Oracle in 1999 and specializes in the Cash Management and Treasury areas. He
previously led both Oracle Product Management and Product Strategy teams focusing in this
area. Prior to Oracle, John worked at Sungard Treasury Systems as a lead implementation
consultant during engagements in a variety of industries. He also has practical experience in cash
management and treasury, having performed that role for over 5 years at the University of
Colorado.
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Training Guide
Cash and Treasury Training Exercises
Step
1.
2.
Action
Press [Enter].
End of Procedure.
Randy Pollak
Procedure
Randy Pollak
Global Solution Architect
Oracle Cash Management and Treasury
Page 2
Training Guide
Cash and Treasury Training Exercises
Northern California Office
+1-415-515-0203 (cell)
randy.pollak@oracle.com
Randy joined Oracle in 2004 and specializes in the Cash Management and Treasury areas.
Previously, Randy was a stock and bond broker with Prudential Bache and Dean Witter prior to
working 10 years at Sungard Treasury Systems. He also worked a shorter time at yet another
specialized treasury vendor called Reval. Randy has extensive cash management and treasury
industry knowledge and is very familiar with a wide variety of competitor products in this space.
Step
1.
2.
Action
Press [Enter].
End of Procedure.
Page 3
Training Guide
Cash and Treasury Training Exercises
Required Set Up
Create New User and Assign Responsibility
Procedure
In this exercise, we will create a new Oracle Applications user and assign responsibilities to begin
using the product.
Step
1.
Page 4
Action
From the System Administrator Responsibility, open the Security -> User menu
Training Guide
Cash and Treasury Training Exercises
Step
Action
navigator item.
Double-click the Define list item.
2.
Enter the desired information into the User Name field. Enter "XXUSER".
"XX" represents your Terminal number in the classroom. E.g. 01USER, 02USER,
03USER...
3.
4.
5.
6.
7.
Press [Tab].
Enter the desired information into the Password field. Enter "ORACLE".
Press [Tab].
Confirm your password.
Enter the desired information into the Password field. Enter "ORACLE".
Press [Tab].
8.
Make the bottom half of the screen active and in entry mode.
Click in the Responsibility field.
9.
Enter the desired information into the Responsibility field. Enter "Treasury, Cash
and Risk Management Superuser".
10.
Press [Tab].
11.
12.
Enter the desired information into the Responsibility field. Enter "System
Administrator".
13.
14.
15.
16.
Press [Tab].
Click the Save button.
Click the Close Window button.
End of Procedure.
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Training Guide
Cash and Treasury Training Exercises
Procedure
In this exercise, we will map an Oracle Applications user to a new Treasury user and assign
company and deal level access controls.
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Training Guide
Cash and Treasury Training Exercises
Step
1.
2.
3.
Action
From the Treasury, Cash and Risk Management Superuser Responsibility, open the
Setup -> System -> User Access Levels menu navigator item.
Double-click the User Access Levels list item.
Click the New button.
Enter the desired information into the Treasury User field. Enter "XXJOHN".
"XX" represents your terminal number. E.g. 01, 02, 03...
4.
5.
6.
7.
8.
9.
Press [Tab].
Enter the desired information into the Description field. Enter "John Killen".
Press [Tab].
Map the Treasury User back to the Oracle Applications User ID.
Enter the desired information into the Application User field. Enter "XXUSER".
Press [Tab].
Click in the Company field.
Grant this user access to the appropriate companies (or Legal Entities). In our case, we
will only grant access to one company for now.
10.
11.
12.
13.
14.
15.
As you can see on the right side of the screen, you can control both input access as
well as the ability to validate whether deals have been entered accurately. Accept the
defaults for now.
Click the Save button.
Press the left mouse button on the Close Window object.
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Training Guide
Cash and Treasury Training Exercises
Step
16.
Action
End of Procedure.
Procedure
In this exercise, we will create two counterparties, a bank and a broker, and their bank accounts.
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Training Guide
Cash and Treasury Training Exercises
Step
1.
2.
Action
From the Treasury, Cash and Risk Management Superuser Responsibility, open the
Setup -> Parties -> Counterparty Profiles menu navigator item.
Double-click the Counterparty Profiles list item.
First, let's create one of our banks. Ultimately, this bank can be a counterparty for
some of the deals we make. It may also be a bank where we hold some of our own
bank accounts.
Remember, "XX" represents your terminal number. E.g. 01BANK, 02BANK,
03BANK...
Enter the desired information into the Party Code field. Enter "XXBANK".
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
Press [Tab].
Enter the desired information into the Full Name field. Enter "XX Bank Name".
Press [Tab].
Press [Tab].
(again)
Enter the desired information into the Short Name field. Enter "XXBANK".
Press [Tab].
Enter the desired information into the Country field. Enter "United States".
Press [Tab].
In order to make this particular counterparty available for trading foreign exchange
transactions...
Click the FX option.
Similarly, in order to make this particular counterparty available for trading money
market, or interest bearing, transactions...
Click the MM option.
If you intended to issue or buy stock through this counterparty, you would continue by
checking Equity Market. You could also identify it for other purposes as shown.
Click the Save button.
Now, let's define some bank accounts for this bank. In this case, we are setting up
XXBank's own bank accounts, not our own company's accounts help at XXBank.
Setting up our own company's bank accounts will be covered in a different exercise.
Click the Settle Account Detail button.
Enter the desired information into the Account Number field. Enter "XX100-123456".
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Training Guide
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Step
Action
"XX" represents your terminal number.
17.
18.
19.
20.
21.
Press [Tab].
Enter the desired information into the Currency field. Enter "USD".
Press [Tab].
Let's make this the default USD bank account for XXBANK.
Click the Default Account option.
Press [Tab].
22.
Press [Tab].
(again)
23.
Enter the desired information into the Account Name field. Enter "XX Bank's USD
A/C".
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
Page 10
Press [Tab].
Press [Tab].
(again)
Enter the desired information into the Bank Code field. Enter "XXBANK".
Press [Tab].
Enter the desired information into the Address field. Enter "100 Wallstreet".
Press [Tab].
Enter the desired information into the Location field. Enter "New York City, NY".
Click the Save button.
Click the Close Window button.
Now, let's create another Counterparty. This time, we will create a broker that you
might use for buying investments or issuing debt, for instance.
Click the New button.
Enter the desired information into the Party Code field. Enter "XXBROK".
Press [Tab].
Enter the desired information into the Full Name field. Enter "XX Broker Name".
To complete this training exercise, you should continue setting up XX Broker, again
making it available for FX and MM transactions. Also, for both XX Bank and XX
Training Guide
Cash and Treasury Training Exercises
Step
Action
Broker, you should define at least one bank account in each of the following
currencies: USD, CAD, EUR, GBP.
38.
End of Procedure.
Procedure
In this exercise, we will create a new company and your own bank accounts.
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Training Guide
Cash and Treasury Training Exercises
Step
1.
2.
3.
Action
From the Treasury, Cash and Risk Management Superuser Responsibility, open the
Setup -> Parties -> Company Profiles menu navigator item.
Double-click the Company Profiles list item.
Let's create our own company.
Click the New button.
Enter the desired information into the Company field. Enter "XXCOMP".
"XX" represents your terminal number.
4.
5.
6.
7.
8.
9.
Page 12
Press [Tab].
Press [Tab].
(again)
We need to link Oracle Treasury's company to the appropriate Legal Entity, which is
already defined as part of the broader Oracle Applications implementation.
Enter the desired information into the Legal Entity field. Enter "XX Legal Entity".
Press [Tab].
Enter the desired information into the Short Name field. Enter "XX COMPANY".
Press [Tab].
Training Guide
Cash and Treasury Training Exercises
Step
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
Action
Enter the desired information into the Full Name field. Enter "XX COMPANY,
INC".
Click the Company Parameters tab.
Click in the FX Tolerance field.
Enter the desired information into the Journal Transfer in Closed Period field. Enter
"Next".
Press [Tab].
Enter the desired information into the Interest Includes field. Enter "Corporate".
Press [Tab].
Enter the desired information into the Interest Rounding field. Enter "Detail".
Press [Tab].
Click the Suspense Account List of Values button.
Click the OK button.
or
Press [O].
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
Enter the desired information into the Department List Values field. Enter "000".
Enter the desired information into the Account List Values field. Enter "2990".
Click the OK button.
Press [Tab].
Enter the desired information into the Allow Unbalanced Journal Transfer field.
Enter "No".
Press [Tab].
Press [Tab].
(again)
Enter the desired information into the FX Tolerance field. Enter "2".
Press [Tab].
Enter the desired information into the Interest Includes field. Enter "Last".
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Training Guide
Cash and Treasury Training Exercises
Step
31.
32.
Step
33.
Page 14
Action
Press [Tab].
Enter the desired information into the Interest Rounding field. Enter "Nearest".
Action
Press [Tab].
Training Guide
Cash and Treasury Training Exercises
Step
Action
34.
35.
36.
37.
38.
Enter the desired information into the Account Currency field. Enter "USD".
Press [Tab].
Enter the desired information into the Account Number field. Enter "XX100-555555".
"XX" represents your terminal number.
39.
40.
41.
Press [Tab].
Enter the desired information into the Account Name field. Enter "XX USD Conc
A/C".
Press [Tab].
42.
Press [Tab].
(again)
43.
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Training Guide
Cash and Treasury Training Exercises
Step
44.
45.
46.
47.
48.
49.
50.
51.
52.
Action
Press [Tab].
Enter the desired information into the Street Name field. Enter "100 Wallstreet".
Press [Tab].
Let's make this our company's default bank account for USD.
Click the Default Account option.
Press [Tab].
Enter the desired information into the Bank Location field. Enter "New York City,
NY".
Click the Save button.
Continue with this training exercise. You should create a total of 3 USD bank accounts
for your company. The next two accounts should be your USD Deposit A/C and your
USD Disbursement A/C. Also, create at least one new company bank account for each
of the following currencies: CAD, EUR, and GBP.
End of Procedure.
Procedure
In this exercise, we will create new company portfolios that will be used to categorize your
transactions.
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Training Guide
Cash and Treasury Training Exercises
Step
1.
2.
3.
4.
5.
6.
7.
8.
Action
From the Treasury, Cash and Risk Management Superuser Responsibility, open the
Setup -> System -> Portfolio Codes menu navigator item.
Double-click the Portfolio Codes list item.
Let's query for our existing company. You can search for existing records in Oracle
Applications by using the View menu item at the top of the screen or by using a short
code as we will do in this exercise.
Press [F11].
Now that we are in "query mode", we can enter what we are looking for. % is the
wildcard key, if needed.
Enter the desired information into the Company field. Enter "XXCOMP".
To execute the query, we will use a short code. You could also once again use the
View menu item above.
Press [Ctrl+F11].
Let's create a couple new Portfolios for our Company.
Click in the Code field.
Enter the desired information into the Code field. Enter "CASH".
Press [Tab].
Enter the desired information into the Name field. Enter "Cash Portfolio".
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Training Guide
Cash and Treasury Training Exercises
Step
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
Page 18
Action
Click the Default Internal Portfolio option.
Press [Tab].
Enter the desired information into the Code field. Enter "HEDGE".
Press [Tab].
Enter the desired information into the Name field. Enter "Hedging Portfolio".
Click the Save button.
Click the Close Window button.
From the Treasury, Cash and Risk Management Superuser Responsibility, open the
Banking Activities -> Current Account Balances menu navigator item.
Double-click the Current Account Balances list item.
Enter the desired information into the Company field. Enter "XXCOMP".
Click the Find button.
You now see the list of all the bank accounts defined for your company.
Click the scrollbar.
Click in the Portfolio field.
Enter the desired information into the Portfolio field. Enter "CASH".
Click in the Portfolio field.
Enter the desired information into the Portfolio field. Enter "CASH".
Click in the Portfolio field.
Enter the desired information into the Portfolio field. Enter "CASH".
Click in the Portfolio field.
Enter the desired information into the Portfolio field. Enter "CASH".
Click in the Portfolio field.
Enter the desired information into the Portfolio field. Enter "CASH".
Training Guide
Cash and Treasury Training Exercises
Step
30.
31.
32.
33.
34.
Action
Click in the Portfolio field.
Enter the desired information into the Portfolio field. Enter "CASH".
Click the Save button.
Click the Close Window button.
End of Procedure.
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Training Guide
Cash and Treasury Training Exercises
Procedure
In this exercise, we will enter new closing bank balances for your company's accounts.
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Training Guide
Cash and Treasury Training Exercises
Step
1.
2.
3.
Action
From the Treasury, Cash and Risk Management Superuser Responsibility, open the
Banking Activities -> Current Account Balances menu navigator item.
Double-click the Current Account Balances list item.
Enter the desired information into the Company field. Enter "XXCOMP".
Click the Find button.
or
Press [i].
4.
5.
Step
6.
Action
Press [Tab].
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Training Guide
Cash and Treasury Training Exercises
Step
Action
7.
Press [Tab].
(again)
8.
Press [Tab].
(again)
9.
10.
11.
12.
13.
14.
15.
16.
Page 22
Similarly, Oracle Treasury supports amount short codes like "K" or "T" for thousands,
"M" for millions, and "B" for billions.
Enter the desired information into the Statement Balance field. Enter "150K".
Press [Tab].
Click the Save button.
Click the Close Window button.
Highlight the second bank account in your list.
Click in the Company field.
Click the Maintain Balances button.
Enter the desired information into the Date field. Enter "-1".
Press [Tab].
Training Guide
Cash and Treasury Training Exercises
Step
17.
18.
19.
20.
21.
22.
23.
24.
Action
Press [Tab].
(again)
Enter the desired information into the Statement Balance field. Enter "5K".
Press [Tab].
Click the Save button.
Click the Close Window button.
Continue with this exercise until you have entered closing balances for yesterday for
all your bank accounts. Some sample balances are shown to the right where
concentration accounts might typically close with ~100K to 200K and sub accounts for
each currency might be ~0 to 20K depending on their purposes and how accurately
cash is being positioned.
Click in the Company field.
When you have finished with all your accounts, you can review the latest available
balances by using the Find Window.
Click the Find button.
Click the Find button.
or
Press [i].
25.
26.
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Training Guide
Cash and Treasury Training Exercises
Procedure
In this exercise, we will enter an inter-account transfer, moving money from one of your
company's bank accounts to another.
Step
1.
2.
3.
4.
5.
6.
Page 24
Action
From the Treasury, Cash and Risk Management Superuser Responsibility, open the
Other Deal Items -> Inter-Account Transfers menu navigator item.
Double-click the Inter-Account Transfers list item.
Click in the Company field.
Enter the desired information into the Company field. Enter "XXCOMP".
Press [Tab].
To review the last closing balances reported by your bank(s)...
Click in the Currency field.
Let's manually transfer the total closing balance from your USD Disbursement A/C
into your USD Concentration A/C.
Click in the From Bank Code field.
Training Guide
Cash and Treasury Training Exercises
Step
7.
8.
9.
10.
Action
Enter the desired information into the From Bank Code field. Enter "XXBANK".
Press [Tab].
Click the XX USD Disbursement A/C list item.
Click the OK button.
or
Press [O].
11.
12.
13.
14.
15.
16.
Press [Tab].
Enter the desired information into the Pay Amount field. Enter "5K".
Press [Tab].
Press [Tab].
(again)
Enter the desired information into the Portfolio field. Enter "CASH".
Press [Tab].
17.
Press [Tab].
(again)
18.
Enter the desired information into the Comments field. Enter "Manual Balance
Transfer".
19.
20.
21.
22.
Press [Tab].
Enter the desired information into the To Bank Code field. Enter "XXBANK".
Press [Tab].
Click the OK button.
Since the USD Concentration A/C is already highlighted.
or
Press [O].
23.
24.
25.
Page 25
Training Guide
Cash and Treasury Training Exercises
Step
Action
or
Press [R].
26.
27.
28.
29.
Procedure
In this exercise, we will create and view a new cash position worksheet for your company.
Page 26
Training Guide
Cash and Treasury Training Exercises
Step
1.
Action
From the Treasury, Cash and Risk Management Superuser Responsibility, open the
Cash Positioning menu navigator item.
Double-click the Cash Positioning list item.
Page 27
Training Guide
Cash and Treasury Training Exercises
Step
2.
3.
Action
Click the Create Worksheet button.
Click in the Worksheet Name field.
4.
Enter the desired information into the Worksheet Name field. Enter "XX Daily Cash
Position".
5.
Click the Use Calculated Prior Day Cash Flow and Overdue Transactions
Balances list.
6.
7.
8.
9.
10.
11.
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Training Guide
Cash and Treasury Training Exercises
Step
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
Action
Click the Include Treasury Inflows option.
Click the Include Treasury Outflows option.
Click the scrollbar.
Now, let's save our Cash Position Worksheet template.
Click the Apply button.
Click the Generate Cash Position button.
Click the View By list.
Click the Bank Account list item.
Click the Apply button.
Since this is the first time that we have run the cash position worksheet for today, the
Oracle Treasury will first retrieve the latest available closing balances and perform
some offline calculations related to any overdue items. Typically, this program will be
scheduled to run overnight immediately after downloading prior day bank statements.
Click the Yes button.
After waiting for the offline program to complete, let's run our cash position again for
today.
Click the Apply button.
Click the scrollbar.
First, notice that all of the bank accounts set up for XX Company are displayed in the
results, along with their opening balances and current day's activity. You can easily
refine which bank accounts are displayed by adjusting the cash position set up,
including viewing bank accounts for specific banks or across multiple Legal Entities.
You can also define the display order for the bank accounts from the Current Account
Balances screen.
Click the 5,000.00 link.
You can drill down into multiple levels of detail from the cash position results. In this
case, you can review the Inter-Account Transfer. You can also drill down into AP, AR,
Payroll, and Bank item details if those sources are included in your worksheet set up.
Click the Show link.
Click the Cancel button.
to return to the main cash position results screen.
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Training Guide
Cash and Treasury Training Exercises
Step
26.
27.
28.
29.
30.
Action
Click the View By list.
Click the Currency list item.
Click the Refresh Data button.
In the Currency View, balances and cash flows for all the worksheet's bank accounts
are aggregated by currency for easy reference of your global cash position.
End of Procedure.
Procedure
In this exercise, we will create a new physical cash pool, add it to your company's cash position
worksheet, and automate cash transfers based on rules defined in the cash pool.
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Training Guide
Cash and Treasury Training Exercises
Step
1.
Action
From the Treasury, Cash and Risk Management Superuser Responsibility, open the
Setup -> Parties -> Cash Pools menu navigator item.
Double-click the Cash Pools list item.
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Training Guide
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Step
2.
3.
4.
5.
6.
7.
Action
Click the Physical Cash Pool list.
Click the Physical Cash Pool list item.
Click the Go button.
Click in the Cash Pool Name field.
Enter the desired information into the Cash Pool Name field. Enter "XX USD Cash
Pool".
Press [Tab].
8.
Press [Tab].
(again)
9.
Enter the desired information into the Column Number field. Enter "XX USD Conc
A/C".
10.
Page 32
Press [Tab].
Training Guide
Cash and Treasury Training Exercises
Step
11.
Action
Click the Bank Initiated Sweeps list.
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Training Guide
Cash and Treasury Training Exercises
Step
12.
13.
14.
Page 34
Action
If you were tracking a bank initiated ZBA structure, you would select 'Yes' from this
list. Accounting entries and reconciliation would be automated from priorday bank
statements. In our exercise, let's proactively manage the bank account balances
ourselves.
Click the No list item.
Click the Next (1 of 5) button.
Click the Add Sub Accounts button.
Training Guide
Cash and Treasury Training Exercises
Step
15.
Action
Click the Rounding Factor object.
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Training Guide
Cash and Treasury Training Exercises
Step
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
Page 36
Action
Click the Company or Subsidiary list item.
Enter the desired information into the Search By field. Enter "XX%".
Click the Go button.
Click the Select All link.
In our exercise, we will only use bank accounts owned by the same Company.
However, it is possible to define cash pools spanning multiple companies, and Oracle
Treasury will manage the cash transfers as well as associated in-house banking
balances and interest, as needed.
Click the Select button.
Click the Next (2 of 5) button.
Enter the desired information into the Minimum Target Balance field. Enter "25000".
Press [Tab].
Enter the desired information into the Maximum Target Balance field. Enter
"40000".
Press [Tab].
Training Guide
Cash and Treasury Training Exercises
Step
26.
27.
28.
29.
Step
30.
31.
Action
Enter the desired information into the Minimum Payment Amount field. Enter
"5000".
Press [Tab].
Enter the desired information into the Exchange Type field. Enter "5000".
Press [Tab].
Action
Click the Rounding Factor list.
Click the 1000 list item.
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Training Guide
Cash and Treasury Training Exercises
Step
32.
33.
34.
35.
Page 38
Action
Click in the Minimum Target Balance field.
Enter the desired information into the Minimum Target Balance field. Enter "0".
Press [Tab].
Enter the desired information into the Maximum Target Balance field. Enter "0".
Training Guide
Cash and Treasury Training Exercises
Step
36.
Action
Click the Rounding Factor list.
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Training Guide
Cash and Treasury Training Exercises
Step
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.
Action
Click the 1000 list item.
Click the Next (3 of 5) button.
Click in the Portfolio field.
Enter the desired information into the Portfolio field. Enter "CASH".
Press [Tab].
Enter the desired information into the Product Type field. Enter "N/A".
Click the Next (4 of 5) button.
Review the cash pool set up before saving by clicking the Finish Button.
Click the Finish button.
Click in the Search By Cash Pool Name field.
Enter the desired information into the Search By Cash Pool Name field. Enter "XX
%".
(% is a wildcard character)
Page 40
Training Guide
Cash and Treasury Training Exercises
Step
47.
Step
48.
Action
Click the Go button.
Action
Your cash pool has been saved and can be updated later as needed to add or delete sub
accounts or make other modifications.
Click the Close Window button.
Page 41
Training Guide
Cash and Treasury Training Exercises
Step
49.
Page 42
Action
Let's see how this new cash pool can be used in our cash positioning worksheet.
Double-click the Cash Positioning list item.
Training Guide
Cash and Treasury Training Exercises
Step
50.
Action
Enter the desired information into the Search for Worksheet Name field. Enter "XX
%".
(Again, % is a wildcard character.)
51.
52.
53.
54.
55.
Enter the desired information into the Cash Pool Name field. Enter "XX USD Cash
Pool".
56.
Let's save our changes and review the new cash position results.
Click the Apply button.
57.
58.
Page 43
Training Guide
Cash and Treasury Training Exercises
Step
59.
60.
Step
61.
Page 44
Action
Click the Cash Pool list item.
Click the Apply button.
Action
Notice that the representation of 3 USD bank accounts has changed. The total balance
and net cash flow in all the accounts is displayed in a single column for the entire Cash
Pool. Let's compare this view to individual bank account information.
Click the View By list.
Training Guide
Cash and Treasury Training Exercises
Step
62.
Action
Click the Bank Account list item.
Page 45
Training Guide
Cash and Treasury Training Exercises
Step
63.
Step
64.
65.
66.
67.
Page 46
Action
Click the Refresh Data button.
Action
Notice the ending projected surpluses and deficits in the USD Deposit and
Disbursement bank accounts based on your new target balances. Oracle Treasury can
automatically create transactions to move funds based on your cash pool rules.
Click the Generate Cash Leveling Proposal button.
The proposal is made automatically by the system. You can review and make changes
as needed or simply accept the suggestion. Notice that both transfers will be rounded to
the nearest 1,000 and the Disbursement Account is projected to close at its minimum
target balance of 25,000.
Click the Apply button.
Click the Generate button.
An offline program is initiated to create the new transactions. Refresh your cash
position data after that program completes to see the updated cash flows and
projections.
Click the Refresh Data button.
Training Guide
Cash and Treasury Training Exercises
Step
Action
Step
Action
68.
69.
The worksheet results for your USD accounts are updated now that your cash has been
concentrated based on your rules.
Click the Close Window button.
End of Procedure.
Page 47
Training Guide
Cash and Treasury Training Exercises
Cash Forecasting
Procedure
In this exercise, we will create a new cash forecast and view results for your company's treasury
activity over the next year.
Step
1.
Page 48
Action
From the Treasury, Cash and Risk Management Superuser Responsibility, open the
Cash Forecasting menu navigator item.
Double-click the Cash Forecasting list item.
Training Guide
Cash and Treasury Training Exercises
Step
2.
3.
4.
5.
Action
Click the Forecast Templates button.
First, let's create a new Cash Forecast Template for our company's treasury cash flows.
Click the Create Template button.
Click in the Template Name field.
Enter the desired information into the Template Name field. Enter "XX Company
Forecast".
("XX" represents your terminal number)
6.
7.
8.
9.
10.
Press [Tab].
Enter the desired information into the Description field. Enter "Global Treasury
Cash Flows".
Click the Next button.
Click the Add Row of Source Type list.
Click the Treasury Inflow list item.
Page 49
Training Guide
Cash and Treasury Training Exercises
Step
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
Page 50
Action
Click the Go button.
Click in the Row Number field.
Enter the desired information into the Row Number field. Enter "10".
Press [Tab].
Enter the desired information into the Description field. Enter "Inflows".
Press [Tab].
Enter the desired information into the Search for Company field. Enter "XX
Company".
Press [Tab].
This forecast will now include all Treasury Inflows for XX Company. We could
further restrict the results by Transaction Type, if needed. Now, let's save and include
Treasury Outflows.
Click the Apply button.
Click the Add Row of Source Type list.
Click the Treasury Outflow list item.
Click the Go button.
Click in the Row Number field.
Enter the desired information into the Row Number field. Enter "20".
Press [Tab].
Enter the desired information into the Description field. Enter "Outflows".
Press [Tab].
Enter the desired information into the Search for Company field. Enter "XX
Company".
Press [Tab].
Click the Apply button.
For this exercise, let's just include Treasury cash flows. It is also possible to add other
sources like AP, AR, Expense, Payroll as well as 3rd party data. Now, let's define the
time horizon (or time buckets) that we want to include for this forecast template.
Training Guide
Cash and Treasury Training Exercises
Step
Action
Click the Next button.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.
47.
48.
49.
50.
51.
52.
53.
Let's start by defining a couple 7 day periods or time buckets. Then, as we get further
out, we will increase the number of days in each period to 14, 30, and 180. Ultimately,
we will set up this forecast out to 360 days.
Click in the Column Number field.
Enter the desired information into the Column Number field. Enter "10".
Press [Tab].
Enter the desired information into the From field. Enter "1".
Press [Tab].
Enter the desired information into the To field. Enter "7".
Click in the Column Number field.
Enter the desired information into the Column Number field. Enter "20".
Press [Tab].
Enter the desired information into the From field. Enter "8".
Press [Tab].
Enter the desired information into the To field. Enter "14".
Click in the Column Number field.
Enter the desired information into the Column Number field. Enter "30".
Press [Tab].
Enter the desired information into the From field. Enter "15".
Press [Tab].
Enter the desired information into the To field. Enter "30".
Click the Column Number list.
Enter the desired information into the Column Number field. Enter "40".
Press [Tab].
Enter the desired information into the From field. Enter "31".
Page 51
Training Guide
Cash and Treasury Training Exercises
Step
54.
55.
56.
57.
58.
59.
60.
61.
62.
63.
64.
65.
66.
67.
68.
69.
70.
71.
72.
73.
74.
75.
76.
Page 52
Action
Press [Tab].
Enter the desired information into the To field. Enter "60".
Click in the Column Number field.
Enter the desired information into the Column Number field. Enter "50".
Press [Tab].
Enter the desired information into the From field. Enter "61".
Press [Tab].
Enter the desired information into the To field. Enter "90".
Click in the Column Number field.
Enter the desired information into the Column Number field. Enter "60".
Press [Tab].
Enter the desired information into the From field. Enter "91".
Press [Tab].
Enter the desired information into the To field. Enter "180".
Click in the Column Number field.
Enter the desired information into the Column Number field. Enter "70".
Press [Tab].
Enter the desired information into the From field. Enter "181".
Press [Tab].
Enter the desired information into the To field. Enter "360".
That completes the set up for this Forecast Template. You can define as many
templates as you would like.
Click the Finish button.
Click in the Search for Template Name field.
Enter the desired information into the Search for Template Name field. Enter "XX
Company Forecast".
Training Guide
Cash and Treasury Training Exercises
Step
77.
78.
79.
80.
81.
82.
83.
84.
85.
86.
87.
88.
89.
90.
91.
92.
93.
Action
Click the Go button.
Now, let's run the report to view our results.
Click the Run Forecast button.
We can either run the forecast on an ad hoc basis or define this set of parameters and
schedule the forecast to run overnight with other reports and programs.
Click in the Forecast Name field.
First, we can name the results. If you leave this field blank, the results will be named
automatically using the forecast template name along with a date and time stamp.
Enter the desired information into the Forecast Name field. Enter "XX July 2006
Results".
The results will be summarized into a common currency.
Click in the Forecast Currency field.
Enter the desired information into the Forecast Currency field. Enter "USD".
Click in the Exchange Type field.
Enter the desired information into the Exchange Type field. Enter "Corporate".
Click in the Start Date field.
Enter the desired information into the Start Date field. Enter "1-Jul-2006".
Click in the Exchange Date field.
Enter the desired information into the Exchange Date field. Enter "1-Jul-2006".
Click the Opening Balance By Bank Account option.
Click the Submit button.
Click the View Forecasts button.
Click Go periodically until the Processing Status is Complete. Let's review the results.
Click the XX July 2006 Results link.
The results for each source and time period are summarized in the first screen. Let's
drill down into the details using the hyperlinks provided.
Click the 29,253,163.59 link.
Page 53
Training Guide
Cash and Treasury Training Exercises
Step
94.
95.
96.
97.
Step
98.
Page 54
Action
Here, you can see the 5 transactions that make up the total $29.2 million inflow during
this period. You can drill down further for more information. This is also true for other
sources besides Treasury, if you had included cashflows originating in AP, AR, etc.
Click the Show link.
Click the Forecast Results link.
Instead of reviewing the cash forecast results by Transaction Source, let's look at this
same information displayed by Bank Account.
Click the View Forecast Results By Bank Account option.
The information is summarized across all bank accounts or we can drill down into
single accounts for more information.
Click the XX EUR Main A/C link.
Action
As you can see, you still have the ability to drill down to the individual transactions.
You can also see the running balances and the impacts of the net cashflows in each
period.
Click the Close Window button.
Training Guide
Cash and Treasury Training Exercises
Step
99.
Action
End of Procedure.
Page 55
Training Guide
Cash and Treasury Training Exercises
Procedure
In this exercise, we will invest extra cash in a short term money instrument like an overnight
money market fund.
Page 56
Training Guide
Cash and Treasury Training Exercises
Step
1.
2.
Action
From the Treasury, Cash and Risk Management Superuser Responsibility, open the
Money Market Transactions -> Short Term Money menu navigator item.
Double-click the Short Term Money list item.
Enter the desired information into the Company field. Enter "XXCOMP".
("XX" represents your terminal number)
3.
4.
Press [Tab].
Enter the desired information into the Cparty field. Enter "XXBANK".
("XX" represents your terminal number)
5.
6.
7.
8.
9.
10.
11.
12.
13.
Press [Tab].
Press [Tab].
(again)
Depending on whether you have a cash surplus or deficit position, you will either
invest or fund (borrow). In our example, let's assume we have excess cash. It is also
possible to set up multiple Short Term Money arrangements in different currencies,
with different counterparties, and for either investing or borrowing depending on your
daily needs.
Enter the desired information into the Deal Subtype field. Enter "INVEST".
Press [Tab].
Enter the desired information into the Currency field. Enter "GBP".
Press [Tab].
Let's also review some of the other "common" details that may be defined for this
arrangement.
Click the scrollbar.
Other parameters for interest calculations, currency revaluation, and which bank
accounts are used for settlement are defaulted in but may be changed, if needed.
Click the Save button.
Now, let's use this Short Term Money vehicle to invest some extra cash we might have
on hand (to earn a better interest rate than we would otherwise in a bank account).
Click the Transactions button.
or
Press [n].
14.
Many of the details are defaulted already. Let's first choose a user-defined Product
Type that may be set up separately as part of the system implementation. Product
Types, along with Portfolios, are useful for reporting purposes and also drive flexible
accounting rules.
Page 57
Training Guide
Cash and Treasury Training Exercises
Step
Action
Click in the Product Type field.
15.
16.
17.
We already have some Product Types defined. Let's use one named "Call", which
refers to the fact that there is no set maturity for these funds and we may renegotiate
(or call) the funds back on any day before the cutoff time.
Enter the desired information into the Product Type field. Enter "CALL".
Press [Tab].
Enter the desired information into the Settlement Date field. Enter "0".
(Remember, we can either type in dates and amounts explicitly or use short codes.
Oracle Treasury knows "0" means today.)
18.
19.
Press [Tab].
Press [Tab].
(today's date is 7-Jul-06)
20.
If this transaction had a set Maturity Date, you would enter it here.
Press [Tab].
21.
Press [Tab].
(again)
22.
23.
Let's assume we already reviewed our Cash Position and we know that we have
4,750,000 GBP to invest for the day.
Enter the desired information into the Principal Amt field. Enter "4.75M".
Press [Tab].
24.
Press [Tab].
(again)
25.
Press [Tab].
(again)
26.
27.
28.
Page 58
Enter the desired information into the Interest Rate field. Enter "4.678".
Once we save the transaction, this Short Term Money investment is stored in the
system. All related cash flows and positions will be updated automatically. For
instance, if you review your Cash Position worksheet again (remember we assumed
that we had some 4,750,000 GBP in excess cash), the position will be updated to
reflect the outgoing payment due for that amount and our projected closing bank
balance will be updated.
Click the Save button.
End of Procedure.
Training Guide
Cash and Treasury Training Exercises
Procedure
In this exercise, we will renegotiate the terms of our original short term money investment,
increasing the outstanding balance and changing the interest rate.
Step
1.
Action
From the Treasury, Cash and Risk Management Superuser Responsibility, open the
Money Market Transactions -> Short Term Money menu navigator item.
Double-click the Short Term Money list item.
Page 59
Training Guide
Cash and Treasury Training Exercises
Step
2.
3.
4.
5.
Action
Let's search for existing "deals" (a.k.a. investment or borrowing agreements we have
outstanding with our counterparties)
Press [F11].
Press [Tab].
Enter the desired information into the Company field. Enter "XXCOMP".
Press [Ctrl+F11].
To execute the query using short codes. You can also use the View -> Query By
Example option from the top menu if you are more comfortable with that navigation.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
Page 60
Press [Tab].
Notice the interest amount of GBP 2,468.94 will change once the new renegotiated
date (or the original transaction's maturity) takes affect.
Press [Tab].
Click the scrollbar.
If needed, we can settle or compound calculated interest (net or gross of any tax that
was included)...
Click the Interest Action button.
... in this case, we will just continue to accrue the existing interest until the end of
month.
Click the Cancel button.
We can also renegotiate the principal amount, if needed.
Click the Principal Action list.
Training Guide
Cash and Treasury Training Exercises
Step
17.
18.
19.
Action
In this case, let's assume we want to increase our original investment position by GBP
1.75 million.
Click the Increase list item.
Enter the desired information into the Principal Adjustment field. Enter "1.75M".
Press [Tab].
20.
Press [Tab].
(again)
21.
22.
23.
24.
25.
Once again, we could have a pre-defined Maturity Date, if needed. In this case, let's
leave the maturity open.
Click in the Maturity Date field.
Click the Save button.
A new cash outflow has been entered into the system due on 13-Jul-06 and the
invested balance with XXBANK is increased to GBP 6.5 million as of that date.
Click the Close Window button.
End of Procedure.
Procedure
Page 61
Training Guide
Cash and Treasury Training Exercises
In this exercise, we will invest extra cash in a discounted type security like a commercial paper
transaction.
Step
1.
2.
3.
4.
Action
From the Treasury, Cash and Risk Management Superuser Responsibility, open the
Money Market Transactions -> Negotiable Instruments -> Discounted Securities menu
navigator item.
Double-click the Discounted Securities list item.
Press [Tab].
Press [Tab].
(again)
Enter the desired information into the Company field. Enter "XXCOMP".
("XX" represents your terminal number)
5.
6.
Press [Tab].
Enter the desired information into the Counterparty field. Enter "XXBROK".
("XX" represents your terminal number)
7.
Page 62
Press [Tab].
Training Guide
Cash and Treasury Training Exercises
Step
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
Action
Press [Tab].
(again)
Press [Tab].
(... note, in the live application, some users may prefer to point and click the mouse
rather than tabbing.)
Press [Tab].
(again)
Let's assume we have excess cash to invest short term. If we were instead in a
borrowing position, we would chose another Deal Subtype to "Issue" debt to fund our
operations.
Enter the desired information into the Deal Subtype field. Enter "BUY".
Press [Tab].
As you may remember, Product Types (along with Portfolios) are user defined. In this
case, we will select one called "COMP" for Commercial Paper, a type of discounted
security. You might also choose to set up Product Types for other categories like
Bankers Acceptance or Certificates of Deposit for this Deal Type.
Enter the desired information into the Product Type field. Enter "COMP".
Press [Tab].
In this case, let's invest excess Canadian dollars.
Enter the desired information into the Currency field. Enter "CAD".
Press [Tab].
For now, let's accept the default Day Count Basis of 30/360. Other standard
conventions like Actual/365, Actual/Actual, etc are also supported by the system for
calculation of interest.
Press [Tab].
Enter the desired information into the Start Date field. Enter "0".
This short code will translate to Today's date. In this example, 11-July-2006.
19.
Press [Tab].
20.
Press [Tab].
(again)
21.
Use "W" as the short code for weeks, or in our case October 3rd.
Enter the desired information into the Maturity Date field. Enter "12W".
22.
Press [Tab].
23.
Press [Tab].
(again)
24.
25.
Enter the desired information into the Trans Rate field. Enter "4.5".
Page 63
Training Guide
Cash and Treasury Training Exercises
Step
26.
Action
Press [Tab].
27.
Press [Tab].
(again)
28.
Press [Tab].
(again)
29.
30.
31.
32.
33.
34.
35.
36.
In our example, let's buy 5 "parcels" at $2.5 million each. You can just as easily buy 1
parcel for the full amount of $12.5 million. If you are not using a buy and hold
investment strategy, the parcel sizes will become important at the time of resale.
Enter the desired information into the Size field. Enter "5".
Press [Tab].
Enter the desired information into the Face Value field. Enter "2.5M".
Press [Tab].
Click the Done button.
Notice that your default settlement bank accounts for your company and your
counterparty populated automatically.
Click the Save button.
Click the Close Window button.
End of Procedure.
Procedure
In this exercise, we will resell a portion of our original investment in commerical paper.
Page 64
Training Guide
Cash and Treasury Training Exercises
Step
1.
2.
3.
4.
5.
6.
7.
8.
Action
From the Treasury, Cash and Risk Management Superuser Responsibility, open the
Money Market Transactions -> Negotiable Instruments -> Discounted Security Resales
menu navigator item.
Double-click the Discounted Security Resales list item.
Enter the desired information into the Company field. Enter "XXCOMP".
Click the Find button.
Click the Scrollbar object.
This is our original purchase that we now want to resell.
Click the Parcel Details button.
Enter the desired information into the Sell field. Enter "4".
Press [Tab].
Click the Done button.
Page 65
Training Guide
Cash and Treasury Training Exercises
Step
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
Action
Click the Create Resale Deal button.
Enter the desired information into the Counterparty field. Enter "XXBROK".
Click in the Start Date field.
Enter the desired information into the Start Date field. Enter "2".
Press [Tab].
Click the Interest Details tab.
Press [Tab].
Enter the desired information into the Trans Rate field. Enter "4.45".
Press [Tab].
Click the Save button.
19.
The F4 function key is the short cut to close your active window.
Press [F4].
20.
21.
22.
The F11 function key allows you to search for existing records based on some criteria
you enter during the query mode.
Press [F11].
Enter the desired information into the Company field. Enter "XXCOMP".
(% can be a useful wildcard character)
23.
24.
25.
26.
27.
Page 66
Training Guide
Cash and Treasury Training Exercises
Step
Action
realized gain, of 121.04.
Click the Close Window button.
28.
End of Procedure.
Procedure
In this exercise, we will set up and enter new miscellaneous cash flows or exposures like Ad Hoc
wire payments.
Page 67
Training Guide
Cash and Treasury Training Exercises
Step
1.
2.
3.
4.
5.
Action
From the Treasury, Cash and Risk Management Superuser Responsibility, open the
Setup -> Policies -> Deal Types / Product Types menu navigator item.
Double-click the Deal Types / Product Types list item.
First, let's set up your own "Product Type", or type of wire / miscellaneous cash flow.
Note: During your system configuration, it is also possible to change any of these
codes or abbreviations to be more consistent with your own terminology. For instance,
it is possible to change "Exposures" to "Wires / Misc Cash Flows".
Click in the EXP Code field.
Click the Product Types tab.
Click the New button.
Enter the desired information into the Type field. Enter "XXWIRE".
("XX" represents your terminal number)
6.
7.
8.
Page 68
Enter the desired information into the Description field. Enter "XX Misc Wire".
Click the Save button.
Click the Close Window button.
Training Guide
Cash and Treasury Training Exercises
Step
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
Action
From the Treasury, Cash and Risk Management Superuser Responsibility, open the
Setup -> System -> Journal Entry Actions menu navigator item.
Double-click the Journal Entry Actions list item.
We will cover the full accounting setup as another topic. However, to be able to use
Exposures, or wires / miscellaneous cash flows, you must have a basic journal
structure defined.
Click in the GL Account field.
First, let's just identify a specific GL Account that we will use within Oracle Treasury.
Enter the desired information into the GL Account field. Enter "01-000-7740-0000000".
Press [Tab].
You can accept the default GL description or give a shorter reference used within
Treasury.
Enter the desired information into the Treasury Reference field. Enter
"Miscellaneous".
Click the Save button.
Click the Close Window button.
From the Treasury, Cash and Risk Management Superuser Responsibility, open the
Other Deal Items -> Exposure Transactions menu navigator item.
Double-click the Exposure Transactions list item.
Almost there... The last step before entering these types of payments or receipts is to
make the various "Product Types" or "Exposure Types" available to your individual
Company and to associate the GL Account to use for automatic journal generation
later.
Click the Setup Exposure Types button.
Enter the desired information into the Company field. Enter "XXCOMP".
Press [Tab].
Enter the desired information into the Name field. Enter "XXWIRE".
Press [Tab].
Click in the GL Account field.
Since we only defined one GL Account to use at this time, clicking on the List of
Values will automatically populate our account.
Click the GL Account button.
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Training Guide
Cash and Treasury Training Exercises
Step
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
43.
Action
Enter the desired information into the Company field. Enter "XXCOMP".
Press [Tab].
Let's enter a couple other Exposure Types that were defined earlier.
Enter the desired information into the Name field. Enter "ADHOC".
Press [Tab].
Click the GL Account object.
Enter the desired information into the Company field. Enter "XXCOMP".
Press [Tab].
Enter the desired information into the Name field. Enter "REPEAT".
Press [Tab].
Click the GL Account button.
Click the Save button.
Click the Close Window button.
Now, we're finished with the set up. Let's enter a new wire / miscellaneous cash flow.
Enter the desired information into the Company field. Enter "XXCOMP".
Press [Tab].
Enter the desired information into the Exposure Type field. Enter "XXWIRE".
Press [Tab].
Exposures can be Firm or Indicative. You might use Indicative if you are not sure
about the actual date or amount but still want to record the cash flow for reporting
purposes. You can always adjust the record later with the exact dates or amounts when
you know them.
Enter the desired information into the Firm/Indicative field. Enter "FIRM".
Press [Tab].
Press [Tab].
(again)
Enter the desired information into the Action field. Enter "PAY".
(You could also record "REC" or cash receipts.)
Page 70
Training Guide
Cash and Treasury Training Exercises
Step
44.
45.
46.
47.
48.
Action
Enter the desired information into the Currency field. Enter "EUR".
Press [Tab].
Press [Tab].
(again)
Enter the desired information into the Estimate Amount field. Enter "500K".
Press [Tab].
49.
Press [Tab].
(again)
50.
Press [Tab].
(again)
51.
52.
53.
54.
55.
56.
57.
58.
59.
60.
61.
In this case, let's assume the actual payment amount is slightly less than we originally
anticipated.
Enter the desired information into the Actual Amount field. Enter "498500".
Press [Tab].
You may record this payment / receipt simply for positioning or forecasting purposes.
Or, if you select "Treasury to Settle", this cash flow will appear in Oracle Treasury's
settlement queue for processing the actual payment with your bank.
Click the Treasury to Settle option.
Click in the Counterparty field.
Enter the desired information into the Counterparty field. Enter "DB".
Press [Tab].
[ ] represents up to 15 user defined fields, including the ability to enforce validations
and dependencies. The user defined fields are only set up to be active under certain
circumstances right now, which is not the case for XXWIRE's. That's why nothing
happens when clicking this field right now.
Click in the [ ] field.
Let's change the Exposure Type a couple times to REPEAT and ADHOC in order to
see the impact on the user defined fields.
Click in the Exposure Type field.
Enter the desired information into the Exposure Type field. Enter "REPEAT".
Click in the [ ] field.
Now, we see a list of values since the user defined fields were set up to be dependent
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Training Guide
Cash and Treasury Training Exercises
Step
Action
on the Exposure Type field.
Click the button.
62.
63.
64.
65.
66.
67.
68.
69.
70.
71.
72.
Page 72
End of Procedure.
Training Guide
Cash and Treasury Training Exercises
Procedure
In this exercise, we will issue new long term debt in the form of Fixed Income securities or
Bonds.
Step
1.
Action
From the Treasury, Cash and Risk Management Superuser Responsibility, open the
Setup -> Deals -> Bond Issues menu navigator item.
Double-click the Bond Issues list item.
Page 73
Training Guide
Cash and Treasury Training Exercises
Step
2.
Action
Enter the desired information into the Issue Code field. Enter "XXBOND".
("XX" represents your terminal number)
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
Press [Tab].
Enter the desired information into the Bond Description field. Enter "XX Bond July
2011 at 7%".
Press [Tab].
Click the Authorized option.
Press [Tab].
Since you are issuing this bond as debt (to raise funds for your operations or for a
project, building, etc), your company should be selected as the Issuer. If you were
creating a bond to purchase as an investment, an external counterparty would be
selected here.
Enter the desired information into the Issuer Code field. Enter "XXCOMP".
Press [Tab].
Press [Tab].
(again)
Enter the desired information into the Currency field. Enter "USD".
Press [Tab].
Let's use a Product Type that has already been defined. Typical configurations might
include Product Types for Corporate or Government Bonds, Agencies, etc. Remember
Product Types allow you to filter or aggregate information for reporting as well as to
define unique accounting rules.
Enter the desired information into the Product Type field. Enter "CORP".
Press [Tab].
Enter the desired information into the Start Date field. Enter "0".
The system will interpret "0" as Today's date.
16.
Press [Tab].
17.
Press [Tab].
(again)
18.
19.
20.
Page 74
Press [Tab].
This parameter defines how many significant digits are used during calculations of
price and yield, which can have an impact on the final results (and sometimes your
Training Guide
Cash and Treasury Training Exercises
Step
Action
ability to exactly match your broker's calculations).
Click in the Calculation Precision field.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
Enter the desired information into the Calculation Precision field. Enter "11".
Press [Tab].
Enter the desired information into the Price Display Accuracy field. Enter "6".
Click in the Yield Display Accuracy field.
Enter the desired information into the Yield Display Accuracy field. Enter "6".
Click the Coupon Details tab.
Standard bond coupon types are supported by Oracle Treasury.
Click the Coupon Type button.
Compound and Zero coupons as well as Fixed and Floating interest are supported.
"Regular" simply means you are dividing the annual interest by the number of coupons
whereas "Irregular" is typically used in combination with an Actual Day Count Basis
and will count the number of days in each coupon period for the allocation (Eg, 181 vs
184).
Click the Fixed-Regular list item.
Press [Tab].
Click the Coupon Frequency button.
Let's assume that we are paying interest every 6 months.
Click the Semi Annual list item.
Press [Tab].
Press [Tab].
(again)
Click the Payment Due Dates Business Day Convention button.
Standard Business Day Conventions are also supported and determine how the system
handles interest payment dates that might fall on a weekend or holiday. In this case, we
will assume the actual interest payments are deferred to the next good business day.
Click the Following list item.
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Cash and Treasury Training Exercises
Step
36.
37.
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Page 76
Action
Press [Tab].
First and Last Coupon Dates will be defaulted by the system, but they allow you to
create long or "stub" coupon periods at the beginning or end of your bond, if needed.
Press [Tab].
Press [Tab].
Enter the desired information into the Rate field. Enter "7".
Click the Additional Details tab.
Bonds can be tied to market rate references defined in the system for revaluation
purposes.
Enter the desired information into the Rate Reference field. Enter "2011 BOND".
Press [Tab].
Press [Tab].
(again)
Click the Pricing Model button.
Click the Market list item.
For revaluation purposes.
Press [Tab].
Enter the desired information into the Market Data Set field. Enter "DEFAULT".
Let's assume that our bond issue may be "called" in 4 years before the final maturity.
This feature might be used if interest rates trend downward between now and then or
we otherwise have cash on hand to pay off the debt.
Click the Callable Bond option.
Click the OK button.
Click the Save button.
Click the Call Details tab.
Click in the Call Date field.
Enter the desired information into the Call Date field. Enter "4Y".
Click in the Price field.
Training Guide
Cash and Treasury Training Exercises
Step
55.
56.
57.
58.
Action
Enter the desired information into the Price field. Enter "101".
Click the Save button.
Click the Close Window button.
Now, let's complete the transaction by capturing the remaining details.
From the Treasury, Cash and Risk Management Superuser Responsibility, open the
Money Market Transactions -> Negotiable Instruments -> Fixed Income Securities
menu navigator item.
Double-click the Fixed Income Securities list item.
59.
60.
61.
Press [Tab].
Press [Tab].
(again)
Enter the desired information into the Company field. Enter "XXCOMP".
("XX" represents your terminal number)
62.
63.
64.
65.
66.
67.
68.
69.
70.
71.
72.
73.
Press [Tab].
Enter the desired information into the Counterparty field. Enter "XXBROK".
Click in the Deal Subtype field.
Remember, we are issuing debt to raise funds in this exercise...
Enter the desired information into the Deal Subtype field. Enter "ISSUE".
Press [Tab].
Enter the desired information into the Issue Code field. Enter "XXBOND".
Press [Tab].
Click in the Face Value field.
Enter the desired information into the Face Value field. Enter "20M".
Press [Tab].
Press [Tab].
(again)
Let's enter price. The system will calculate the yield accordingly. It is also possible to
enter yield and have the system calculate price, if that is how your brokers quote bonds
to you.
Enter the desired information into the Clean Price field. Enter "99.75".
Page 77
Training Guide
Cash and Treasury Training Exercises
Step
74.
75.
76.
77.
78.
79.
80.
Action
Press [Tab].
Click the Interest Details tab.
Click the Save button.
Click the Coupon Summary tab.
All the future coupon payments are now stored in the system for settlement, accrual,
journal, and reporting purposes. Notice how some of the coupon maturity dates fall on
weekends...
Click the scrollbar.
...based on the Business Day Convention, the Due Date for those cash flows are
adjusted to be paid on the Following good business day.
Click the Close Window button.
End of Procedure.
Procedure
In this exercise, we will invest extra cash using wholesale term money. The investment will be
floating rate and will have a structured repayment schedule.
Page 78
Training Guide
Cash and Treasury Training Exercises
Step
1.
2.
3.
4.
5.
6.
Action
From the Treasury, Cash and Risk Management Superuser Responsibility, open the
Money Market Transactions -> Wholesale Term Money menu navigator item.
Double-click the Wholesale Term Money list item.
Press [Tab].
Enter the desired information into the Deal Date field. Enter "-6M".
Let's back date this deal as if it started 6 months ago...
Press [Tab].
Press [Tab].
(again)
Enter the desired information into the Company field. Enter "XXCOMP".
("XX" represents your terminal number)
7.
8.
9.
Enter the desired information into the Counterparty field. Enter "XXBANK".
Click in the Deal Subtype field.
We are assuming that we had extra cash to invest when we made this deal 6 months
ago. If we needed cash, we would have borrowed money from XXBANK and the
Subtype would be "FUND".
Enter the desired information into the Deal Subtype field. Enter "INVEST".
Page 79
Training Guide
Cash and Treasury Training Exercises
Step
10.
11.
12.
13.
14.
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23.
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Page 80
Action
Press [Tab].
Let's use one of the Product Types already set up in the system, STRL or Structured
Loan / Investment.
Enter the desired information into the Product Type field. Enter "STRL".
Press [Tab].
Enter the desired information into the Currency field. Enter "EUR".
Press [Tab].
Enter the desired information into the Principal Amount field. Enter "10M".
Press [Tab].
Press [Tab].
(again)
Click the Day Count Basis button.
Click the Actual / 365 list item.
Enter the desired information into the Start Date field. Enter "-6M".
Press [Tab].
Let's assume this was a 5 year investment, so the maturity date would be an additional
54 months from today, or 11-Jan-2011.
Enter the desired information into the Maturity Date field. Enter "54M".
Press [Tab].
Press [Tab].
(again)
This is a floating rate investment, so we'll tie it to a reference benchmark rate in the
market.
Press [Tab].
This interest rate is just the initial rate. As the benchmark floats up or down and any
time a new coupon is reset, the system will assign a new interest rate and recalculate
the interest amount accordingly.
Enter the desired information into the Interest Rate field. Enter "6.5".
Click in the Benchmark Rate field.
Let's tie this floating rate investment to the 3 Month Libor rate plus a margin of 50
basis points, or .5%.
Enter the desired information into the Benchmark Rate field. Enter "3M LIBOR".
Training Guide
Cash and Treasury Training Exercises
Step
29.
30.
31.
32.
33.
34.
Action
Press [Tab].
Enter the desired information into the Margin field. Enter "50".
Click the Interest Due On Dates button.
Click the Following list item.
Click the Save button.
In this example, the system is set up to track certain investment limits. We can accept
these warnings even though there are some violations. Oracle Workflow Alerts are
embedded and may automatically notifiy our manager(s) of the breach.
Click the Accept button.
or
Press [A].
35.
36.
37.
38.
39.
40.
41.
42.
The outstanding balance and all the various coupon dates, rates, and amounts are
displayed for your reference.
Click the scrollbar.
Future coupon amounts are estimated using the initial 6.5% and will show up in cash
positions and forecasts as well as other reports. Take note of the interest amount for the
July - Aug 2006 coupon, which is 55,205. In a moment, we will reset that rate and the
interest amount will be recalculated automatically.
Click the Close Window object.
Click the Close Window object.
From the Treasury, Cash and Risk Management Superuser Responsibility, open the
Rates -> Current System Rates menu navigator item.
Double-click the Current System Rates list item.
Market Data like interest rates, FX rates, bond and stock prices, and volatilities may be
loaded into Oracle Treasury automatically from rate providers like Reuters or
Bloomberg. In this case, let's manually update the 3 Month Libor rate for today (11Jul-06) and see how that can be used to adjust the floating rate investment we just
entered. First, let's search for the 3M LIBOR rate code using the F11 function key.
Press [F11].
Enter the desired information into the Ref Code field. Enter "3M LIBOR".
Press [Ctrl+F11].
Click the scrollbar.
Page 81
Training Guide
Cash and Treasury Training Exercises
Step
43.
44.
45.
46.
47.
48.
Action
Let's update the 3M LIBOR rate with a significant increase, say from 4.46 to 8%.
Enter the desired information into the Bid Price field. Enter "8".
Enter the desired information into the Ask Price field. Enter "8".
Click the Save button.
Click the scrollbar.
Notice the new 3M LIBOR rate is set at 8% for 11-Jul-2006.
Click the Close Window button.
Click the View menu.
or
Press [V].
49.
50.
51.
52.
53.
54.
55.
56.
57.
Page 82
Training Guide
Cash and Treasury Training Exercises
Step
Action
program will find all floating rate deals for XXCOMP that have a reset date as of
today, reset those interest rates, and recalculate the associated interest amounts.
Click the Submit button.
58.
59.
60.
61.
62.
63.
64.
65.
66.
67.
68.
69.
70.
71.
72.
From the Treasury, Cash and Risk Management Superuser Responsibility, open the
Money Market Transactions -> Wholesale Term Money menu navigator item once
again.
Double-click the Wholesale Term Money list item.
Press [Ctrl+F11].
Click the Transaction Details button.
Click in the Rate Fixing Date field.
For the coupon period starting on 11-Jul-2006.
Click the scrollbar.
Notice that the interest rate is now updated to 8.5% (the 3M LIBOR rate of 8% plus the
50 basis point spread). Similarly, the interest amounts are updated going forward, too.
Click in the Interest Rate field.
Click the Close Window button.
In this exercise, we will cover one last feature within the Wholesale Term Money deal
type. Rather than having a balloon maturity where all the principal is repaid at
maturity, let's review how we can adjust the outstanding principal annually throughout
the 5 year period.
Click the Principal Adjustment button.
Enter the desired information into the Adjustment Amount field. Enter "1M".
Press [Tab].
Click the Multiple option.
Press [Tab].
Enter the desired information into the Effective field. Enter "0".
Press [Tab].
Click the Frequency button.
Page 83
Training Guide
Cash and Treasury Training Exercises
Step
73.
74.
75.
Action
Click the Semi Annual list item.
Click the Review Schedule button.
In this example, we made multiple principal adjustments based on a scheduled
frequency. We could even modify the adjustments in this window before saving the
records to the deal -- changing amounts, making some increases instead of decreases,
etc. It is also possible to make single principal adjustments on an ad hoc basis during
the life of the deal.
Click the Save button.
or
Press [S].
76.
77.
78.
79.
80.
Page 84
Notice now, the deal has semi-annual principal reductions (DECRSE) that will affect
the running outstanding balance of the deal as well as the calculated interest amounts
for those adjusted coupon periods.
Click the scrollbar.
Click the Close Window button.
Click the Close Window button.
End of Procedure.
Training Guide
Cash and Treasury Training Exercises
Procedure
In this exercise, we will set up an internal counterparty, or subsidiary, and enter intercompany
funding transactions often called in house banking.
Step
1.
Action
From the Treasury, Cash and Risk Management Superuser Responsibility,
open the Setup -> System -> Counterparty Profiles menu navigator item.
Page 85
Training Guide
Cash and Treasury Training Exercises
Step
Action
Double-click the Counterparty Profiles list item.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
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17.
Page 86
Press [Tab].
Enter the desired information into the Currency field. Enter "USD".
Press [Tab].
Training Guide
Cash and Treasury Training Exercises
Step
18.
19.
Action
Click the Default Account option.
Press [Tab].
20.
Press [Tab].
(again)
21.
Enter the desired information into the Account Name field. Enter "XX Sub
USD A/C".
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
Training Guide
Cash and Treasury Training Exercises
Step
Action
System will interpret -2W as two weeks before today's date, in this case 28Jun-2006.
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.
47.
Press [Tab].
(again)
48.
Enter the desired information into the Account Balance Low field. Enter "999999999".
Make sure you enter a <negative> balance amount.
49.
50.
51.
52.
Page 88
Press [Tab].
Enter the desired information into the Account Balance High field. Enter "0".
Press [Tab].
The parent will pay this subsidiary 3.5% on the sub's invested balances.
Training Guide
Cash and Treasury Training Exercises
Step
Action
Enter the desired information into the Interest Rate field. Enter "3.5".
53.
54.
55.
Press [Tab].
Enter the desired information into the Effective Date field. Enter "-1Y".
Press [Tab].
56.
Press [Tab].
(again)
57.
Enter the desired information into the Account Balance Low field. Enter
"0.01".
58.
59.
60.
61.
62.
63.
64.
65.
66.
67.
68.
69.
70.
Press [Tab].
Enter the desired information into the Account Balance High field. Enter
"999999999".
Press [Tab].
...and the parent will charge the sub 5% for any outstanding loan balances. It is
also possible to create multiple tiers with different interest rates in each range.
Enter the desired information into the Interest Rate field. Enter "5".
Click the Save button.
Click the Close Window button.
Click in the Principal Adjust field.
Re-enter the Principal Adjustment amount now that an Interest Rate structure
is defined.
Enter the desired information into the Principal Adjust field. Enter "500000".
Press [Tab].
Notice that 3.5% defaulted based on the running balance. Now, let's finish
entering this particular transaction.
Click the Company Details tab.
Press [Tab].
Press [Tab].
(again)
Once you save the very first intercompany funding transaction, these required
values for Portfolio, Product Type, and Pricing Model will default going
forward.
Enter the desired information into the Product Type field. Enter "N/A".
Page 89
Training Guide
Cash and Treasury Training Exercises
Step
71.
72.
73.
Action
Press [Tab].
Click the Save button.
If you set up your system to track Limits and if this deal breaches any of them,
you will see this type of message.
Click the Accept button.
or
Press [A].
74.
75.
76.
77.
78.
79.
80.
81.
82.
83.
84.
85.
86.
87.
88.
Page 90
Let's enter a couple more transactions in this exercise: one for this same
relationship and another between XXCOMP and VISION Companies.
Click the New button.
Enter the desired information into the Company field. Enter "XXCOMP".
Press [Tab].
Enter the desired information into the Intercompany Party field. Enter
"XXSUB1".
Press [Tab].
Press [Tab].
(again)
Enter the desired information into the Transfer Date field. Enter "-7".
Press [Tab].
Click in the Action field.
Enter the desired information into the Action field. Enter "PAY".
Press [Tab].
Enter the desired information into the Principal Adjust field. Enter "2M".
Press [Tab].
Press [Tab].
(again)
Notice that the interest rate defaulting based on your structure and the running
balance. Let's change the Action to REC and see how that affects the balance
and interest rate.
Click in the Action field.
Training Guide
Cash and Treasury Training Exercises
Step
89.
90.
91.
92.
Action
Enter the desired information into the Action field. Enter "REC".
Press [Tab].
Click the Save button.
Click the Accept button.
or
Press [A].
93.
94.
95.
96.
97.
98.
99.
100.
101.
102.
103.
104.
105.
106.
107.
108.
...and, one more transaction to highlight the difference when the second party
is set up as a full Company in Oracle Treasury.
Click the New button.
Enter the desired information into the Company field. Enter "XXCOMP".
Press [Tab].
Enter the desired information into the Intercompany Party field. Enter
"VISION".
Press [Tab].
Notice that the third tab called "Intercompany Party Details" is enabled when
both parties are Companies in the system. A mirror deal will be created in this
case.
Press [Tab].
Enter the desired information into the Transfer Date field. Enter "-7".
Press [Tab].
Click in the Action field.
Enter the desired information into the Action field. Enter "PAY".
Press [Tab].
Enter the desired information into the Principal Adjust field. Enter "3.25M".
Press [Tab].
Press [Tab].
(again)
Click the Company Details tab.
All of these required fields default now for XXCOMP.
Page 91
Training Guide
Cash and Treasury Training Exercises
Step
Action
Click the Intercompany Party Details tab.
109.
110.
111.
112.
113.
114.
115.
116.
117.
118.
119.
These required fields are from VISION's perspective and will need to be
entered the first time only.
Press [Tab].
Enter the desired information into the Portfolio field. Enter "CASH".
Press [Tab].
Enter the desired information into the Product Type field. Enter "N/A".
Press [Tab].
Click the Save button.
Notice the mirrored deal numbers: 28442 and 28443, one being an investment
and the other debt.
Click the Main Details tab.
From XX Company's perspective, there is an outstanding investment of $3.25
million earning 3.5%. Let's look at the other side of the transaction.
Press [F11].
Enter the desired information into the Deal Num field. Enter "28443".
Press [Ctrl+F11].
From Vision's perspective, this represents debt of $3.25 million. Now, let's
take a look at another aspect of intercompany funding, managing the
outstanding balances and interest.
Click the Deal Management button.
or
Press [D].
120.
121.
122.
Using this Deal Management Find Window, we can look at the outstanding
balances and any interest that has accrued to date. Typically, this is used at
month end or quarter end to settle or compound the outstanding interest
accruals.
Press [Tab].
Enter the desired information into the Company field. Enter "XXCOMP".
Click the Find button.
or
Press [i].
Page 92
Training Guide
Cash and Treasury Training Exercises
Step
123.
124.
125.
126.
Action
Currently, we only have two in house banking relationships for XXCOMP, but
you can manage many relationship within this screen.
Click the Interest Management tab.
You can Settle or Compound interest for each relationship. Since this is often
repetitive in nature, whatever Action you used last time will default for each
relationship.
Click the Interest Action button.
Click the Settle list item.
Click the Apply Interest Actions button.
or
Press [A].
127.
128.
Notice that new transactions are created automatically to track and account for
the interest settlements, in this case $2,181.51 is settled.
Click the Close Window button.
End of Procedure.
Procedure
In this exercise, we will enter a new foreign exchange forward transaction, buying US dollars and
selling Canadian dollars in 12 weeks.
Page 93
Training Guide
Cash and Treasury Training Exercises
Step
1.
2.
3.
4.
Action
From the Treasury, Cash and Risk Management Superuser Responsibility, open the
Foreign Exchange Transactions -> Spot / Forwards menu navigator item.
Double-click the Spot / Forwards list item.
Press [Tab].
Press [Tab].
(again)
Enter the desired information into the Company field. Enter "XXCOMP".
("XX" represents your terminal number)
5.
6.
7.
8.
9.
10.
Page 94
Press [Tab].
Enter the desired information into the Counterparty field. Enter "XXBANK".
Press [Tab].
Press [Tab].
(again)
Let's categorize this particular deal by putting it in our Hedging Portfolio, perhaps
along with other derivatives like FX Options, Interest Rate Swaps, etc.
Enter the desired information into the Portfolio field. Enter "HEDGE".
Press [Tab].
Training Guide
Cash and Treasury Training Exercises
Step
11.
12.
Action
Press [Tab].
(again)
Enter the desired information into the Deal Subtype field. Enter "FORWARD".
(Spot trades may be indicated here as well.)
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
Press [Tab].
Let's just used the default Product Type that has been set up in the system. If needed,
we could define and use other Product Types for reporting and accounting purposes.
Press [Tab].
Let's enter a value date of 12 weeks from today's date. Perhaps we have identified a
financial exposure at that time. For example, let's assume that we have a large sale in
Canadian dollars and expect the customer(s) to pay in 12 weeks. By locking in the
USD/CAD exchange rate today, we are able to protect our US Based Company from
adverse rate movements, protecting our bottom line and EPS.
Enter the desired information into the Value Date field. Enter "12W".
Press [Tab].
Press [Tab].
(again)
Enter the desired information into the Buy Currency field. Enter "USD".
Press [Tab].
Press [Tab].
(again)
Enter the desired information into the Sell Currency field. Enter "CAD".
Press [Tab].
Notice that once you enter the currency pair, the system defaults a Reference Spot Rate
of 1.1385 from the current system rates data (which might be loaded automatically
from a rate provider like Reuters or Bloomberg).
Enter the desired information into the Sell Amount field. Enter "15M".
Press [Tab].
You can either enter the Forward Points or the Transaction Rate itself. The system will
triangulate the other values and also calculate the Buy (or Sell) Amount.
Enter the desired information into the Forward Points field. Enter "3.25".
Press [Tab].
Let's overwrite the Transaction Rate and see how the Forward Points and Buy Amount
will be adjusted accordingly...
Enter the desired information into the Transaction Rate field. Enter "1.139".
Page 95
Training Guide
Cash and Treasury Training Exercises
Step
29.
30.
31.
32.
Page 96
Action
Click the Additional Details tab.
Click the Save button.
Click the Close Window button.
End of Procedure.
Training Guide
Cash and Treasury Training Exercises
Process Transactions
Process Settlements
Procedure
In this exercise, we will configure settlement requirements, enter a new payment, authorize it, and
generate a payment file to be transmitted to your paying bank.
Step
1.
Action
From the Treasury, Cash and Risk Management Superuser Responsibility, open the
Setup -> Parties -> Company Profiles menu navigator item.
Page 97
Training Guide
Cash and Treasury Training Exercises
Step
Action
Double-click the Company Profiles list item.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
Page 98
Training Guide
Cash and Treasury Training Exercises
Step
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
Action
Click the Save button.
Click the Close Window button.
From the Treasury, Cash and Risk Management Superuser Responsibility, open the
Setup -> Parties -> Counterparty Profiles menu navigator item.
Double-click the Counterparty Profiles list item.
The SWIFT 100 format requires payee address information in the file. So, in order to
successfully create a payment, we need to first update our counterparty with address
information as a preliminary set up step.
Press [F11].
Enter the desired information into the Party Code field. Enter "XXBROK".
Press [Ctrl+F11].
Click in the Swift ID field.
Enter the desired information into the Swift ID field. Enter "XXBKRID".
Click the Save button.
Click the Address Detail button.
Press [Tab].
Enter the desired information into the Address Name field. Enter "Main Office".
Press [Tab].
Enter the desired information into the Mailing Address 1 field. Enter "200
Wallstreet".
Press [Tab].
Enter the desired information into the 2 field. Enter "New York City, NY".
Click in the Physical Address 1 field.
Enter the desired information into the Physical Address 1 field. Enter "200
Wallstreet".
Press [Tab].
Enter the desired information into the 2 field. Enter "New York City, NY".
Click the Save button.
Page 99
Training Guide
Cash and Treasury Training Exercises
Step
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.
47.
48.
49.
50.
51.
Action
Click the Close Window button.
Click the Close Window button.
From the Treasury, Cash and Risk Management Superuser Responsibility, open the
Other Deal Items -> Exposure Transactions menu navigator item.
Double-click the Exposure Transactions list item.
Now, let's create an Exposure Transaction (wire payment) from XXCOMP to
XXBROK. Then, we will process the Settlement and create our SWIFT message.
Enter the desired information into the Company field. Enter "XXCOMP".
Press [Tab].
Enter the desired information into the Exposure Type field. Enter "XXWIRE".
Press [Tab].
Enter the desired information into the Firm/Indicative field. Enter "FIRM".
Press [Tab].
Press [Tab].
(again)
Enter the desired information into the Action field. Enter "PAY".
Press [Tab].
Enter the desired information into the Currency field. Enter "USD".
Press [Tab].
Press [Tab].
...using our Default USD account, which includes the XXSWIFT Settlement Script.
52.
53.
54.
55.
Enter the desired information into the Estimate Amount field. Enter "425000".
Press [Tab].
Enter the desired information into the Estimate Date field. Enter "0".
Press [Tab].
56.
Press [Tab].
(again)
57.
Since we want to process this payment from Oracle Treasury, click this option.
Otherwise, this Exposure Transaction would be used for cash forecasting, positioning,
Page 100
Training Guide
Cash and Treasury Training Exercises
Step
Action
and reporting only.
Click the Treasury to Settle option.
58.
59.
60.
61.
62.
63.
64.
65.
66.
67.
68.
69.
70.
71.
Page 101
Training Guide
Cash and Treasury Training Exercises
Step
72.
Action
Click in the Deal Type field.
(Highlighting the upper and lower regions of this window will refresh the information
with the latest updates and/or allow you to change your query.)
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Training Guide
Cash and Treasury Training Exercises
Step
83.
84.
Action
This payment instruction is created by the system and may be transmitted to your bank
for payment processing.
Click the Close Window button.
End of Procedure.
Procedure
Page 103
Training Guide
Cash and Treasury Training Exercises
In this exercise, we will run mark to market deal revaluations and interest accruals for your
company's deals.
Step
1.
2.
Action
From the Treasury, Cash and Risk Management Superuser Responsibility, open the
Accounting -> Revaluations menu navigator item.
Double-click the Revaluations list item.
Enter the desired information into the Company field. Enter "XXCOMP".
("XX" represents your terminal number)
3.
4.
5.
6.
Page 104
Press [Tab].
Click the Batch ID button.
Since this is the very first time you have processed Revaluations (and your month end
accounting), there are no Batch ID's currently defined. Let's back date the Period From
Date to the beginning of last month. For the purposes of this recorded exercise, that is
1-JUN-2006.
Click in the Period From field.
Enter the desired information into the Period From field. Enter "1-JUN-06".
Training Guide
Cash and Treasury Training Exercises
Step
7.
8.
9.
Action
Press [Tab].
Enter the desired information into the To field. Enter "30-JUN-06".
"Capturing Rates" takes a snapshot of the current market data like FX rates, Interest
rates, stock and bond prices, and volatilities. This snapshot will be used by the system
to perform the actual mark to market revaluation calculations.
Click the Capture Rates button.
or
Press [C].
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Training Guide
Cash and Treasury Training Exercises
Step
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Page 106
Action
The new Period Start will always default to 1 day after the previous end date. The
Period End will default based on your accounting calendar (in this case we are in the
middle of the period), but it can be overwritten if needed.
Click the OK button.
Let's take another snapshot of the latest market data as of 14-JUL-2006 and calculate
the latest Revaluation results.
Click the Revaluation Details button.
Click the Calculate Revaluations button.
Click the Calculate Revaluations button.
Click in the Deal Type field.
Press [Ctrl+F11].
Most of the deals entered during this training started in this July 2006 period, so
obviously the number of transactions included in the revaluation results is much
higher.
Click the scrollbar.
Notice the calculations for new Fair Values based on the latest market data in the
system...
Click the scrollbar.
...as well as the associated realized and unrealized gains/losses. In terms of our
Company's functional currency, we have a total unrealized gain of $249,531. These
realized and unrealized results are available for automatic accounting entries to Oracle
GL.
Click the Close Window button.
From the Treasury, Cash and Risk Management Superuser Responsibility, open the
Accounting -> Accruals menu navigator item.
Double-click the Accruals list item.
The next step in our month end accounting process is to calculate interest accruals and
premium/discount amortizations or accretions.
Enter the desired information into the Company field. Enter "XXCOMP".
Click in the Batch ID field.
Training Guide
Cash and Treasury Training Exercises
Step
32.
33.
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39.
Action
Remember, we only authorized the first Revaluation Batch ID, so there is only Batch
available to perform Accruals at this point.
Click the Batch ID button.
Click the Calculate button.
After the program to calculate accruals is completed, let's look at the results by
activating the region and using the Ctrl+F11 function key combination.
Click the First Accrual cell.
Press [Ctrl+F11].
The system calculated accrued interest on several of our deals. These "Interest
Adjustments" represent earnings or expenses that are available for automatic
accounting to be generated and passed to Oracle GL.
Click the scrollbar.
By Authorizing this batch, we again lock down the results and make them available for
the final step in the month end accounting process -- Journals.
Click the Authorize button.
Click the Close Window button.
We just completed Revaluations and Accruals by initiating these processes manually
within the screens. It is also possible to run the entire month end accounting cycle via a
program.
Click the View menu.
or
Press [V].
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Training Guide
Cash and Treasury Training Exercises
Step
Action
security.
Click in the Start Process From field.
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Procedure
In this exercise, we will set up and generate accounting entries for your company's deals.
Page 108
Training Guide
Cash and Treasury Training Exercises
Step
1.
2.
3.
4.
Action
From the Treasury, Cash and Risk Management Superuser Responsibility,
open the Setup -> System -> Journal Entry Actions menu navigator item.
Double-click the Journal Entry Actions list item.
First, let's identify a few more GL Accounts that will be used in our accounting
structures.
Click in the GL Account field.
Click the GL Account button.
Click the OK button.
5.
Enter the desired information into the Department List Values field. Enter
"000".
6.
Enter the desired information into the Account List Values field. Enter
"1110".
7.
8.
Training Guide
Cash and Treasury Training Exercises
Step
9.
10.
11.
Action
Press [Tab].
Click the GL Account button.
Click the OK button.
12.
Enter the desired information into the Department List Values field. Enter
"000".
13.
Enter the desired information into the Account List Values field. Enter
"1130".
14.
15.
16.
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18.
19.
Enter the desired information into the Department List Values field. Enter
"000".
20.
Enter the desired information into the Account List Values field. Enter
"7810".
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23.
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25.
26.
Enter the desired information into the Department List Values field. Enter
"000".
27.
Enter the desired information into the Account List Values field. Enter
"1310".
28.
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Training Guide
Cash and Treasury Training Exercises
Step
29.
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Action
Enter the desired information into the Treasury Reference field. Enter
"Interest Receivable".
Click the Save button.
Now that we have a few more GL Accounts available, let's define a Journal
Structure for one of the deal types we entered earlier.
Click the Journal Structures tab.
Using the F11 function key, let's search for our Short Term Money (ONC)
Investment.
Press [F11].
Enter the desired information into the Deal Type field. Enter "ONC".
Press [Tab].
Enter the desired information into the Deal Subtype field. Enter "INVEST".
Press [Tab].
Enter the desired information into the Prod Type field. Enter "CALL".
Press [Tab].
Enter the desired information into the Portfolio field. Enter "CASH".
Press [Ctrl+F11].
Click in the Date Type field.
Click the Date Type button.
Each Deal Type will have a different set of relevant Dates and Amounts that
may be combined to form journal structures. Once your journal structures are
created, all of your Treasury accounting will be totally automated going
forward. Also, to make setting up and managing these rules as easy as
possible, it is possilbe to copy existing accounting structures.
Click the COMENCE - Start Date list item.
Click the OK button.
Click the Amount Type button.
Page 111
Training Guide
Cash and Treasury Training Exercises
Step
46.
47.
48.
49.
50.
Action
Click the PRINFLW - Principal Amount list item.
Click the OK button.
Click the Action Code button.
Click the INCRSE - Increase Principal list item.
Click the OK button.
or
Press [O].
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Page 112
Training Guide
Cash and Treasury Training Exercises
Step
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Action
Click the Debit/ Credit button.
Click the Credit list item.
Click the New button.
Enter the desired information into the Date Type field. Enter "ACCRUAL".
Press [Tab].
Enter the desired information into the Amount Type field. Enter "INTADJ".
Press [Tab].
Enter the desired information into the Action Code field. Enter "POS".
Click the Debit/ Credit list.
Click the Debit list item.
Press [Tab].
Click the GL Account button.
Click the Interest Receivable list item.
Click the OK button.
Click the New button.
Enter the desired information into the Date Type field. Enter "ACCRUAL".
Press [Tab].
Enter the desired information into the Amount Type field. Enter "INTADJ".
Press [Tab].
Enter the desired information into the Action Code field. Enter "POS".
Click the Debit/ Credit button.
Click the Credit list item.
Page 113
Training Guide
Cash and Treasury Training Exercises
Step
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Page 114
Action
Press [Tab].
Click the GL Account button.
Click the Interest Income list item.
Click the OK button.
Click the New button.
Enter the desired information into the Date Type field. Enter "SETTLE".
Press [Tab].
Enter the desired information into the Amount Type field. Enter "INTSET".
Press [Tab].
Enter the desired information into the Action Code field. Enter "SETTLE".
Click the Debit/ Credit button.
Click the Debit list item.
Click the Bank GL option.
Click the New button.
Enter the desired information into the Date Type field. Enter "SETTLE".
Press [Tab].
Enter the desired information into the Amount Type field. Enter "INTSET".
Press [Tab].
Enter the desired information into the Action Code field. Enter "SETTLE".
Click the Debit/ Credit button.
Click the Credit list item.
Press [Tab].
Training Guide
Cash and Treasury Training Exercises
Step
107.
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Action
Click the GL Account button.
Click the Interest Receivable list item.
Click the OK button.
Click the Save button.
Click the Close Window button.
From the Treasury, Cash and Risk Management Superuser Responsibility,
open the Setup -> Parties -> Company Profiles menu navigator item.
Double-click the Company Profiles list item.
Click the Bank Account Details tab.
Let's assign the Bank GL Account used in our Journal Structure (or, Company
GL Acct) to the bank account that settled our short term money investment in a
previous exercise. You may remember that the short term money transaction
we entered was settled in our main GBP bank account.
Press [F11].
Enter the desired information into the Account Currency field. Enter "GBP".
Press [Ctrl+F11].
Click in the Company GL Acct field.
Click the Company GL Acct button.
Assign the Cash GL Account.
Click the OK button.
Click the Save button.
Click the Close Window button.
From the Treasury, Cash and Risk Management Superuser Responsibility,
open the Accounting -> Revaluations menu navigator item.
Double-click the Revaluations list item.
Let's review one of our accounting Batches.
Page 115
Training Guide
Cash and Treasury Training Exercises
Step
Action
Enter the desired information into the Company field. Enter "XXCOMP".
124.
125.
126.
127.
Press [Tab].
Click the Batch ID button.
Remember that we started to create a new batch through 14-JUL-06, but we
did not authorize the Revaluation details or move forward into Accruals or
Journals.
Click the OK button.
Instead of running each process individually, let's use the Streamline
Accounting program to automate the entire flow to see how journal entries are
created based on the rules we just defined.
Click the View menu.
or
Press [V].
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Page 116
Training Guide
Cash and Treasury Training Exercises
Step
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Action
...ending the process at the generation of journal entries.
Click the Daily Journals - Generation list item.
Click the OK button.
Click the OK button.
Click the Submit button.
Click the Find button.
Click the View Log... button.
The log file can be helpful, particularly when running accounting for multiple
companies or across multiple periods.
Click the Close Window button.
From the Treasury, Cash and Risk Management Superuser Responsibility,
open the Accounting -> Daily Journals menu navigator item.
Double-click the Daily Journals list item.
Click the Find button.
Let's see what accounting entries were created.
Enter the desired information into the Company field. Enter "XXCOMP".
Click the Find button.
or
Press [i].
148.
149.
150.
Notice that most of the entries are for your Short Term Money investment.
However, the wire transaction that settled during this period is also included
since the accounting structure is based on the GL Account assigned to the
Product Type (or Exposure Type).
Click the scrollbar.
Let's drill down into one of these entries.
Click in the Journal Amount field.
Click the Maintain / Review Journal Details button.
Page 117
Training Guide
Cash and Treasury Training Exercises
Step
151.
152.
Page 118
Action
Review the details for this entry. It was generated for a principal increase of a
short term money "call" investment in the cash portfolio. Now, use the F4
function key to close the window and end this exercise.
Press [F4].
End of Procedure.
Training Guide
Cash and Treasury Training Exercises
Reporting
Review Average Rates
Procedure
In this exercise, we will review the average investment rates for your company's deals.
Page 119
Training Guide
Cash and Treasury Training Exercises
Step
1.
2.
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Page 120
Action
From the Treasury, Cash and Risk Management Superuser Responsibility, open the
View -> Positions -> Average Rates menu navigator item.
Double-click the Average Rates list item.
Click the Group Type button.
Let's start by reviewing the average investment balance and rate of return over the last
month. You can also select borrowing or FX rates.
Click the Investment list item.
Click in the Date field.
Enter the desired information into the Date field. Enter "-1M".
Press [Tab].
Click in the Company field.
Let's also narrow our search so we see only investments with XXCOMP, and let's
group the results by Deal Type.
Enter the desired information into the Company field. Enter "XXCOMP".
Click the Group By : Deal Type option.
Click the Find button.
Notice the day weighted balances in each investment category, the interest earned
during the period, and the cumulative average investment rate over the last month of
6.2835%. By scrolling to the right, you can also review average rates for each
investment category.
Click the scrollbar.
Let's change our search parameters.
Click the Find button.
This time, we'll review the last 6 months and also view investments across all the
companies that we have authority to access.
Enter the desired information into the Date field. Enter "-6M".
Press [Tab].
Click in the Company field.
Press [Backspace].
Training Guide
Cash and Treasury Training Exercises
Step
17.
18.
19.
Action
Click the Group By : Deal Type option.
Finally, let's view the rates by our Counterparties rather than by Deal Type.
Click the Group By : Cparty option.
Click the Find button.
or
Press [i].
20.
21.
22.
23.
24.
We'll use the F4 function key to close the window. In the live application, feel free to
query using different parameters and combinations.
Press [F4].
End of Procedure.
Procedure
Page 121
Training Guide
Cash and Treasury Training Exercises
In this exercise, we will create and run a new risk management position report for your company's
investments.
Step
1.
Page 122
Action
From the Treasury, Cash and Risk Management Superuser Responsibility, open the
Setup -> Risk Management -> Filters menu navigator item.
Double-click the Filters list item.
Training Guide
Cash and Treasury Training Exercises
Step
2.
3.
4.
Action
First, let's set up a filter so only XX Company's Investments will be included in this
report. Filters can be reused in multiple Risk Management reports, or analyses.
Click the Create Filter button.
Click in the From field.
Enter the desired information into the From field. Enter "XXCOMP".
("XX" represents your terminal number)
5.
6.
7.
8.
9.
10.
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Page 123
Training Guide
Cash and Treasury Training Exercises
Step
12.
13.
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Page 124
Action
Click the Add Condition button.
Click in the Start Date field.
Click the Invest list item.
Click the Apply button.
Click the Analyses tab.
Click the Create Analysis button.
You can create different styles of reports. Let's just use a simple Table output in this
exercise.
Click the Continue button.
Click in the Analysis Name field.
Enter the desired information into the Analysis Name field. Enter "XX Company
Invest".
Click in the Calculation Threshold field.
The system will only calculate new risk management measures for deals that have no
results or results dated more than 1 day ago. If you are getting market data more
frequently than once per day, you may want this threshold set lower.
Enter the desired information into the Calculation Threshold field. Enter "1".
Click the Next button.
Click in the Search for Filter field.
Enter the desired information into the Search for Filter field. Enter "XXCOMP".
Click the Next button.
Now, let's identify which deal attributes or Risk Management measures we want to
include in this report output.
Click the scrollbar.
Click the Deal Number list item.
Click the Move selected items to other list button.
Click the Deal Type list item.
Training Guide
Cash and Treasury Training Exercises
Step
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
Action
Click the Move selected items to other list button.
Click the Counterparty list item.
Click the Move selected items to other list button.
Click the scrollbar.
Click the Fair Value list item.
Click the Move selected items to other list button.
Click the Duration list item.
Click the Move selected items to other list button.
Click the scrollbar.
Click the scrollbar.
(again)
Click the Maturity Date list item.
Click the Move selected items to other list button.
Page 125
Training Guide
Cash and Treasury Training Exercises
Step
43.
Page 126
Action
Click the scrollbar.
Training Guide
Cash and Treasury Training Exercises
Step
44.
45.
46.
Action
Click the Outstanding Amount list item.
Click the Move selected items to other list button.
Click the scrollbar.
47.
48.
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51.
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54.
55.
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57.
58.
Our report is Processing. Click Go periodically until the Status changes to Completed.
Click the Go button.
59.
Page 127
Training Guide
Cash and Treasury Training Exercises
Step
60.
61.
Page 128
Action
Take a moment to review your new report and some of the key calculations it
produced. You can run this on an ad hoc basis like we just did or have it scheduled to
run overnight along with other reports or processing. The results of this report will be
updated based on the latest deals in Oracle Treasury as well as any new Market Data in
the system.
Click the Close Window button.
End of Procedure.
Training Guide
Cash and Treasury Training Exercises
Other Product Extensions
Page 129