Creating Bank Accounts Oracle R12 Student Guide

Creating Bank Accounts
Overview
Copyright 2007, Oracle. All rights reserved.

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System References
Distribution
Job Title*
Ownership
The Job Title [list@YourCompany.com?Subject=EDUxxxxx] is responsible for ensuring that this
document is necessary and that it reflects actual practice.

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Objectives

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Agenda

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Overview of Bank Account Model
Overview of Bank Account Model

The Bank Account Model feature allows you to define and keep track of all bank accounts in
the e-Business Suite in one place and explicitly grant account access to multiple operating
units/functions and users.
Bank accounts for internal use in Cash Management, Payables, Receivables, Treasury, and
Payroll are consolidated in Release 12. If you are using internal bank accounts in prior releases,
all bank accounts are migrated into the centralized bank account model automatically during
the upgrade.

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Overview of Bank Account Model (continued)

In previous releases, AP owned banks, bank branches, and bank accounts. Such bank accounts
could also be used by AR. Payroll, and Treasury, however, had their own bank account models.
In Release 12, in the new model shown on your screen, Banks and Bank Branches are created
as Trading Community Architecture parties. The bank accounts are associated with Bank
Branches but reside within the Cash Management application. During the bank account
creation, you are able to define in which applications this bank account can be used.

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Use the Bank Account Model Setup section in the Oracle Cash Management User Guide for
help in completing the setup steps.

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Defining Banks
Defining Banks
(N) Cash Management, Vision Operations (USA) > Setup > Banks (T) Bank
To define a bank, complete these setup steps:
Bank Information
1. Select Create.
2. Select one of the two radio buttons in the Bank Options region. When creating a new
bank, you can either create a new bank or add bank details to an existing party defined in
your Trading Community.
3. Enter a country name or select a country from the list of values. This is a mandatory field.
4. Enter the Bank Name. This is a mandatory field.
5. Optionally, enter an Alternative Bank Name, Short Bank Name, Bank Number,
Description, Taxpayer ID, Tax Registration Number, XML Messages Email, Inactive
Date, and Context Value.
6. Select Finish to save your bank or select Save and Next to enter Bank Address
information
Bank Address Information

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1.
2.
3.
4.
5.
In the Create Bank Address page, select Create.

Enter a country, or select one from the list of values.
Enter the remaining country specific address details.
Select Apply to save the address.
Select Finish to complete the bank creation or select Save and Next to enter Bank Contact
Information.
Bank Contact Information
1. In the Create Bank Contact page, select Create.
2. Enter Contact Information. You need only enter a first or last (Family) name, Start Date,
and Email.
3. Optionally, enter Phone and Address information for the contact.
4. Select Apply to save the contact information.
5. Select Finish to complete the bank creation.

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Defining Bank Branches
Defining Bank Branches

(N) Cash Management, Vision Operations (USA) > Setup > Banks > (T) Bank Branches
To define a bank branch, complete these setup steps:
1. Select Create.
2. Enter the Country and Bank Name for which you are creating the branch or select from
the list of values and select Continue.
3. Select one of the two radio buttons in the Branch Options page to indicate if you are
creating a new branch or adding branch details to an existing party defined in your
Trading Community.
4. Enter the Branch Name. This is a mandatory field.
5. Select Branch Type. This is a mandatory field.
6. Optionally, enter the remaining branch information, such as Alternate Branch Name,
Branch Number, BIC, EDI Location, EFT Number, Description, RFC Identifier, Inactive
Date, and Context Value.

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7. Select Finish to save your branch or select Save and Next to enter Branch Address and/or
Branch Contact information. This is similar to creation of the Bank Address and Bank
Contact information.

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Linking Bank and Branches in Oracle Treasury
Linking Bank and Branches in Oracle Treasury

(N) Treasury, Vision Operations (USA) > Setup > Parties > Counterparty Profiles
If you intend to create an internal bank account for use in Treasury, before proceeding to the
bank account setup, you have to link the bank branch you have just created to the counterparty
in Treasury.
You can create a new or update an existing counterparty. In order to establish the link, use the
following steps:
1. Check Bank Branch.
2. Select the Full Name. All the available bank branches is displayed.
Use the Setting Up Oracle Treasury for Oracle Cash Management Integration section in the
Oracle Cash Management User Guide for help in completing the setup steps.

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Creating Bank Accounts: Selecting Branch, Legal Entities, and

Functions
Creating Bank Accounts: Selecting Branch, Legal Entities, and Functions

(N) Cash Management, Vision Operations (USA) > Setup > Banks > Manage Bank Accounts
Perform these setup steps to start the Bank Account creation process:
1. Navigate to the Manage Banks Accounts page using the Setup: Banks menu under the
Cash Management, Vision Operations (USA) responsibility.
2. Select Create.
3. Enter the Country, Bank Name, and Branch Name for which you are creating this account
and select Continue.
4. Enter the Bank Account Owner - the legal entity that owns the account.
5. Select the types of functions that this bank account is going to be used for: Payables,
Payroll, Receivables, and/or Treasury. If the Treasury option is disabled, you have not
linked this bank branch to the counterparty in Treasury.
6. Select Next to enter the Account Information details.
Use the Bank and Account Administration: Define Bank Accounts section in the Oracle Cash
Management User Guide for help in completing the setup steps.

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Creating Bank Accounts: Adding Account Attributes
Creating Bank Accounts: Adding Account Attributes

(N) Cash Management, Vision Operations (USA) > Setup > Banks > Manage Bank Accounts >
(T) Account Information
Perform these setup steps:
1. Enter or select the Account Name, Account Number, and Currency. These are mandatory
fields.
2. Optionally, enter or select the Alternate Account Name, Short Account Name, Check
Digit, Multiple Currencies Allowed, International Bank Account Number (IBAN),
Account Type, Account Suffix, EFT Number, Secondary Account Reference, Account
Holder, Alternate Account Holder, Description, Start Date, and End Date.
3. Select Save and Next to enter Account Controls details.

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Creating Bank Accounts: Adding Account Controls
Creating Bank Accounts: Adding Account Controls

(T) Account Controls
1. General Controls Region
- Enter or select the Cash Account Number. This is a mandatory field.
- Optionally, enter or select the Cash Clearing Account Number, Bank Charges
Account Number, Bank Errors Account Number, Foreign Exchange Charges
Account Number, and Agency Location Code.
- Select the Netting Account.
2. Cash Management Controls Region (Optional)
- Enter the Minimum Target Balance and Maximum Target Balance.
- Enter the Minimum Payment Amount and Minimum Receipt Amount.
- Select the Rounding Factor, Rounding Rule, and enter the Cash Flow Display
Order.
3. Payables Controls Region (Optional)

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4.
5.
6.
7.
8.
9.
Enable the Multiple Currency Payments, Allow Zero Payments, and Pooled
Account options, if required.
- Enter the Maximum Outlay, Minimum Payment, and Maximum Payment.
Reconciliation Controls Region
- Select the Payables Matching Order, Float Handling, and Receivables Matching
Order.
Foreign Currency Bank Region
- Select the Exchange Rate Type and Exchange Rate Date.
Open Interface Controls Region
- Select the Use Reconciliation Open Interfaces, if required, and Open Interface
Matching Criteria.
- Enter the Float Status and Clear Status.
Manual Reconciliation Tolerances Region
- Enter the Tolerance Amount and Tolerance Percentage.
Auto Reconciliation Tolerances Region - Payments
- Enter the Tolerance Amount and Tolerance Percentage.
- Select the Foreign Tolerance Differences and Tolerance Differences.
Auto Reconciliation Tolerances Region - Cashflows
Enter the Tolerance Amount and Tolerance Percentage.
Select the Foreign Tolerance Differences and Tolerance
Differences.
10. Auto Reconciliation Tolerances Region Open Interface

Enter the Tolerance Amount and Tolerance Percentage.
11. Select Save and Next to enter Account Access details


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Creating Bank Accounts: Adding Account Access
Creating Bank Accounts: Adding Account Access

(T) Account Access
1. Select Add Organization Access.
2. Select the types of functions that this bank account is going to be used for: Payables,
Payroll, Receivables, and/or Treasury.
3. Enter or select the Organization.
4. Optionally, enter or select the End Date.
5. Select Continue to add Access options.
6. Select Finish to save your branch or select Save and Next to enter Account Contact
information.
Use the Bank and Account Administration: Define Bank Accounts section the Oracle Cash

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Creating Bank Accounts: Adding Account Contacts
Creating Bank Accounts: Adding Account Contacts

(T) Account Contacts
1. Select Create Contact.
2. Enter Contact Information. You need only enter a first or last (Family) name, Start Date,
and Email.
3. Optionally, enter Phone and Address information for the contact.
4. Select Apply to save the contact information.
5. Select Finish to complete the bank account creation.
Refer to Practice Create a Bank Account [LAB3F6BY]

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Adding Bank Account to Organization Payment Method in Oracle

Payroll
Adding Bank Account to Organization Payment Method in Oracle Payroll

(N) Human Resource, Vision Enterprise (USA) > Payroll > Payment Method
If you intend to add a bank account to the organization payment method in Payroll, perform
these setup steps:
1. In the Define Organization window, define an organization and classify it as all of the
following: business group, legal entity, HR organization, or operating unit.
2. Assign the business group to the HR: Security profile option for your Payroll
responsibility, if it was not done during the initial setup.
(Note: The organization defined in step 1 creates the same unique identity for all the four
classifications)
(Important: If you are using Oracle Payroll, the Organization should have already been
classified as a Business Group & HR Organization. You need to classify the same Organization
as a Legal Entity and Operating Unit also.)
3. In Cash Management, ensure that bank accounts you like to use for Payroll reconciliation
have Payroll Use defined with correct business groups.

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4. In the Organizational Payment Method window, create payment methods.

Bank accounts you assign to your payment methods are used for Payroll reconciliation in your
Cash Management responsibility. To use the bank accounts in Cash Management, provide the
following information:
- Name
- Type
- Currency
- Source Bank
- Bank Details
- Ledger (optional)
- GL Cash Account (optional)
5. To use the Journal Entry Line reconciliation feature from your Payroll bank accounts in
Cash Management, specify a cash account and ledger. The ledger you specify here should
be the same ledger you assign to the GL: Ledger profile option for your Cash
Management responsibility.
6. In Cash Management, you can view reconcile Payroll transactions whose bank accounts
are set up with Payroll Use and the business group assigned in the Bank Account Use is
the one you have in HR: Security profile option.
7. Set up the bank transactions codes in Cash Management for the bank account defined in
Payroll: Payments and Stopped Payments.
Use the Setting Up Oracle Payroll for Oracle Cash Management Integration section in the
Oracle Cash Management User Guide for help in completing the setup steps.

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Defining Bank Transaction Codes
Defining Bank Transaction Codes

(N) Cash Management, Vision Operations (USA) > Setup > Banks > Bank Transaction Codes
1. In the Find Bank Account window, query and select the bank account, whose codes you
are defining. The system displays the Bank Transaction Codes window, which includes
bank account, bank information, and a region for entering transaction codes.
2. Select the Type of bank transaction.
3. Enter the Code of the bank.
4. Optionally, enter the Description, Start Date, End Date, and Float Days.
5. Enter a Transaction Source for payment and receipt transactions.
6. Enter the Reconciliation Sequence number.
7. Optionally, select the Payroll Payment Format based on which the Payroll Matching
Order is also selected.
8. Optionally, if the Transaction Type is Miscellaneous Receipt or Miscellaneous Payment,
select the Matching Against to determine the order of matching and the type of
transactions to match.

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9. Optionally, select the Correction Method.

10. Optionally, select whether to create transactions for any miscellaneous payments and
miscellaneous receipts reported on the bank statement when no transaction number is
provided. If you selected Create option, specify the Receivables Activity type and Receipt
Method.
11. Click Save to record the bank transaction code. Similarly, you can define other
transaction codes for the bank account.
Use the Bank Transaction Codes section in the Oracle Cash Management User Guide for help
in completing the setup steps.
Refer to Practice Set up Bank Transaction Codes [LAB3F6AY]

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Maintaining Bank Account Signing Authorities

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Bank Account Signing Authorities: Setting Up Prerequisites
Bank Account Signing Authorities: Setting Up Prerequisites

Perform these setup steps to set up the prerequisites to set up a bank account signing authority:
1. Enter the potential signing authorities in Oracle HRMS. Non-Oracle HRMS users can
enter people in the Oracle HR Foundation responsibility.
2. Set up bank accounts in Oracle Cash Management.
3. In the System Parameters window, select the appropriate option for the Signing Authority
Approval system parameter. The default is Workflow Enabled.
Oracle Workflow will change the status of all new signing authorities from Pending to
Approved when saved. To configure Oracle Workflow and manually control the approval
status, you must select Manually Controlled.
4. Link the FND user ID or applications ID to a valid Person ID in Oracle HRMS to access
the Bank Account Signing Authority window in the maintain mode.
5. Optionally, update the Signing Group and set up descriptive flexfields.
Use the Maintaining Bank Account Signing Authorities section in the Oracle Cash

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Bank Account Signing Authorities: Entering Signing Authority
Bank Account Signing Authorities: Entering Signing Authority

(N) Cash Management, Vision Operations (USA) > Setup > Banks > Bank Account Signing
Authority
Perform these setup steps to set up the prerequisites to set up a bank account signing authority:
1. In the Find Bank Account window, query and select the bank account, for which you
want to define the signing authority. The system displays the Bank Account Signing
Authority window, which includes bank account, bank information, and two regions for
defining the signing authority.
2. In the Main Details tab, enter or select the Name and the Start Date.
3. Optionally, enter or select the Single Limit, Joint Limit, Signer Group, Other Limitations,
End Date, and Status Pending.
4. Optionally in the Additional Details tab, enter the Person Type, HR Organization, Job,
Location, and Email.
5. Click Save to record the bank account signing authority.
Similarly, you can define other signing authorities for the bank account. You may enter a signer
multiple times on the same account, but you cannot overlap the effective date ranges.

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If the start date of a new entry for the same signer and bank account is before the earliest start
date of the existing entries, the end date should be prior to the earliest start date of the existing
entries.
Enter a Signing Authority Multiple Times
You may enter a signer multiple times on the same account, but you cannot overlap the
effective date ranges.
If the start date of a new entry for the same signer and bank account is before the earliest start
date of the existing entries, the end date should be before the earliest start date of the existing
entries.
Example To add signer As limit for April through June 2005, enter the start and end dates to be
before 01-APR-05.
Signer A, Single Limit 50,000, Start Date 01-JAN-07, End Date 31-MAR-07
Signer A, Single Limit 70,000, Start Date 01-JUL-07, End Date <NULL>
Use the Maintaining Bank Account Signing Authorities section in the Oracle Cash

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Bank Account Signing Authorities: Updating Signing Authority
Bank Account Signing Authorities: Updating a Signing Authority

You can update the group, limitations, effective end date, and status on an existing signing
authority.
Update the existing signing authority record with an effective end date and enter another
record with the new limits if a signers limits change or authority revoked.
Delete the record if you make an error entering a signers limits or effective start date.

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Bank Account Signing Authorities: Viewing Signing Authority
Bank Account Signing Authorities: Viewing Signing Authority

(N) Cash Management, Vision Operations (USA) > View > Bank Account Signing Authority

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Summary

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Creating Bank Accounts Oracle R12 Student Guide

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Creating Bank Accounts

Copyright 2007, Oracle. All rights reserved.