About Bank Reconciliation

There are two major process steps you need to follow when reconciling bank statements: 1. Load Bank Statements: You need to enter the detailed information from each bank statement, including bank account information, deposits received by the bank, and payments cleared. You can enter bank statements manually or load electronic statements that you receive directly from your bank. See: ntering !ank Statements "anually and #oading !ank Statement $pen %nterface. &. Reconcile Bank Statements: $nce you have entered detailed bank statement information into 'ash "anagement, you must reconcile that information with your system transactions. 'ash "anagement provides two methods of reconciliation:
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(utomatic) !ank statement details are automatically matched and reconciled with system transactions. This method is ideally suited for bank accounts that have a high volume of transactions. See: *econciling !ank Statements (utomatically. "anual) This method re+uires you to manually match bank statement details with system transactions. The method is ideally suited to reconciling bank accounts that have a small volume of monthly transactions. You can also use the manual reconciliation method to reconcile any bank statement details that could not be reconciled automatically. See: *econciling !ank Statements "anually.

Miscellaneous Transactions
,uring the reconciliation process, you can create miscellaneous transactions for bank)originated entries, such as bank charges and interest. You can also manually enter -ayables payments or *eceivables receipts. The automatic reconciliation process can be set up to create miscellaneous transactions automatically.

Clearing
.hen you reconcile a transaction, the transaction is first matched to bank statement details and then cleared /if uncleared0. (lternatively, you can manually clear -ayables payments, *eceivables receipts, miscellaneous transactions, open interface transactions, and 'ash "anagement cashflows /e1cept for those created from bank statement lines0 in 'ash "anagement prior to reconciliation to maintain more up)to)date cash account balances. You can also use (utomatic 'learing to clear receipts in $racle *eceivables.

.hen you clear a transaction, 'ash "anagement assigns a cleared date, cleared amount, and status to the transaction. (ccounting for the cleared transaction varies by the source. %f the transaction is a payment, -ayables records the accounting information but you create the accounting entries in -ayables. %f the transaction is a receipt or a miscellaneous transaction, *eceivables automatically generates the accounting entries. %f the transaction is an open interface transaction, you must customi2e the ' 34443-56 package to implement reconciliation accounting. You cannot clear -ayroll payments, 6eneral #edger journal entries, or Treasury settlements.

Review and Summarize Results

$nce you have completed the reconciliation process, we recommend that you review your reconciliation results. You can review the reports that are printed automatically from the (uto*econciliation program. You can also use the following reports:

!ank Statement ,etail *eport !ank Statement Summary *eport !ank Statements by 7umber *eport

Create Accounting Entries in Pa ables

You can create accounting entries for -ayables accounting events in two ways:

Submit the -ayables (ccounting -rocess. 'reate accounting entries for a single transaction or batch.

(fter the process completes, -ayables produces the (ccounting ntries (udit *eport and (ccounting ntries 1ception *eport. The e1ception report lists transactions that could not be accounted because of invalid or missing information. Prere!uisites

,efine -ayables options for accounting information. $pen the period in -ayables. %f you use "ultiple currencies, then all foreign currency transactions re+uire e1change rates. You can enter e1change rates manually, or submit (uto*ate to automatically enter e1change rates for invoices and payments without e1change rates.

%f you use future dated payments, update the status of matured future dated payments to 7egotiable. To account for invoices, they must be validated. To account for payments, the invoices must already be accounted, or you must choose the (ll parameter to account for invoices, and then payments. Submit and review the 8naccounted Transactions *eport to identify and resolve issues with your transactions that will prevent accounting.

Trans"er Accounting Entries to #our $eneral Ledger

(fter you create accounting entries in -ayables, submit the -ayables Transfer to 6eneral #edger program to send invoice and payment accounting entries to the general ledger interface. %f you use $racle 6eneral #edger, then you can submit 9ournal %mport, which uses the data in the 6# interface to create unposted journal entry batches, headers, and lines. You can then post these journal entry batches, headers, and lines within 6eneral #edger to update your 6eneral #edger account balances. You can submit 9ournal %mport either when you submit the transfer program, or separately, after the transfer process completes. See: %mporting 9ournals. %f you do not use 6eneral #edger, you can use the data in the 6# interface to create and post journal entries in your general ledger. -ayables retains the accounting entries, so you can continue to review them in -ayables. (lso, after you post journal entries in $racle 6eneral #edger, you can drill down to the related accounting entries or transactions in -ayables.

Entering Bank Statements Manuall

%n addition to loading bank statement information automatically with the !ank Statement $pen %nterface, you can enter bank statement information manually. You can enable users to update information on a statement that was previously entered manually or loaded automatically, even if the statement is already reconciled. .hen you enter a bank statement manually, you enter the bank statement header and the transaction lines. You can reconcile transaction lines as you enter them, or you can reconcile the bank statement /manually or automatically0 after you enter all the transaction lines and save your work.

%ote: 'ash "anagement assumes that you enter statements in chronological order, and uses this order to calculate cumulative bank account balances.

Prere!uisites

,efine your banks. %f you plan to use the !ank Statement %mport program, you need to define bank transaction codes for the bank account. Set up *eceivables activities and payment methods for miscellaneous transactions. %f you want to use document se+uences, you or your System (dministrator must set up se+uential document numbering for 'ash "anagement. %ote: :or document se+uencing, the effective date is the statement date.

%f you have enabled the (llow (dding #ines to %mported Statements feature in the System -arameters window, you can add lines to automatically)loaded statements.

To enter a bank statement manuall :

1. 7avigate to the :ind !ank Statements window. 'hoose 7ew. &. 'hoose the 7ew button to display the !ank Statement window. ;. <. nter the following bank header information: (ccount 7umber, (ccount 7ame, !ank 7ame, !ank !ranch, and 'urrency. nter the Statement ,ate.

=. %f you use manual document se+uence numbers, enter the Statement ,ocument 7umber. Additional &n"ormation: %f you use automatic document se+uence numbers, 'ash "anagement creates the ,ocument 7umber for the statement automatically. You cannot edit an automatically assigned ,ocument 7umber. >. ?. nter the Statement 7umber. nter the 6# ,ate ) the default is the Statement ,ate. The 6# ,ate must be in an open or a future)enterable period in *eceivables or -ayables.

@. $ptionally, enter !ank Statement 'ontrol Totals:

nter the opening and closing balances as needed. nter control totals for *eceipts and -ayments, as well as the number of statement lines for each. Additional &n"ormation: You can compare the 'ontrol Total amounts to those displayed by 'ash "anagement in the #ine Totals tabbed region of the Statements window, to ensure the completeness and correctness of your entered bank statement. 4. 'hoose #ines to begin entering your statement lines. $ptionally, you can save the header information now and enter the statement lines later. 1A. Save your work.

Reconciling Bank Statements Manuall

%n 'ash "anagement you can reconcile a bank statement manually as well as automatically. You can use the manual method to reconcile any bank statement, whether imported or entered manually. %n addition, you can create new bank statement lines as you reconcile transactions, as well as update the reconciliation information for a previously manually or automatically reconciled statement. .hen you use manual reconciliation, you reconcile each bank statement line with available transactions. You can search for -ayroll payments, *eceivables receipts, -ayables payments, 'ash "anagement 'ashflows, miscellaneous transactions, 6# journal entries, open interface transactions, and statement lines that meet specific criteria, and reconcile the statement line against them. %f the bank statement belongs to a bank account shared by $racle Treasury and $racle 'ash "anagement, you can search for Treasury settlements using the *econciliation $pen %nterface. You can search for transactions based on customer or supplier, batch name, or remittance number, as well as ranges for transaction numbers, transaction date, transaction amount, and maturity date. You can search for journal entries based on -eriod 7ame, 9ournal ntry 7ame, ,ocument 7umber, or #ine 7umber. (s you reconcile a statement manually, you may need to create transactions to account for differences between the sum of the reconciled transaction and the line amount. :or e1ample, you can create a miscellaneous transaction to account for bank charges or interest. You can also create -ayables payments and *eceivables receipts from 'ash "anagement. To account for amount differences for Treasury settlements, you need to create e1posure transactions in $racle Treasury.

Recalculating Amount 'i""erences

.hen manually reconciling, you can automatically default the amount difference between the statement line amount and the transaction amount to the 'harges and rrors field based on how the Tolerance ,ifferences parameters are set. :or -ayables payments or payment batches, and 'ash "anagement 'ashflows:

.hen the Tolerance ,ifferences parameter is set to rrors, the statement line charges amount defaults to the 'harges field. The remaining amount difference between the statement line amount and the transaction amount defaults to the rrors field. .hen the Tolerance ,ifferences parameter is set to 'harges or is not defined the amount difference between the statement line amount and the transaction amount defaults to the 'harges field.

:or *eceivables receipts or remittance batches:

The amount differences between the statement line amount and the transaction amount defaults to the 'harges field.

To manuall reconcile a (reviousl )entered bank statement:

1. %mport or manually enter the statement information. %ote: %f you donBt use $racle *eceivables (utomatic #ockbo1, and your bank statement includes direct deposits or bank transfers, you must create the related receipts manually in *eceivables before you can reconcile them in 'ash "anagement. See: 8sing (uto#ockbo1 and *unning (uto#ockbo1. &. 7avigate to the :ind !ank Statements window. ;. nter the +uery criteria for the statement you want to reconcile, or leave the criteria blank to +uery all e1isting statements. <. 'hoose :ind to see the *econcile !ank Statements window containing the statements that meet your +uery criteria. %ote: You can open custom folders that display statement information in a custom format if you or your organi2ation has defined any. See: 'ustomi2ing the -resentation of ,ata. =. Select the statement you want to reconcile, and choose *eview. 'ash "anagement displays the !ank Statement window, with the header information for the account you +ueried, including !ank 7ame, !ank !ranch, statement ,ate, bank 'urrency, ,ocument 7umber, and Statement 7umber. You can update any of the header information e1cept

for the bank information and the 'urrency. %f you use automatic document se+uence numbers, you cannot change the ,ocument 7umber either. The 6# date defaults to the bank statement date. You can update it, or override it on the individual payment or receipt transaction. >. 'hoose #ines to see the !ank Statement #ines window. ?. Select the statement line that you want to reconcile. @. 'hoose (vailable to search for detail or batch transactions that are available for reconciliation. 4. nter your search criteria in the :ind Transactions window.

1A. Select the available detail and batch transactions that apply to the current bank statement line. 11. /$ptional0 'hoose the *ecalculate button. 1&. *econcile the available detail or batch transactions. 1;. *econcile other statement lines. 1<. /$ptional0 'reate miscellaneous transactions for bank statement transactions with no matching -ayables, *eceivables, or 6eneral #edger activity. %ote: "iscellaneous payments are actually handled as negative receipts by 'ash "anagement. So, to create miscellaneous payments, you must have $racle *eceivables installed and set up. 1=. /$ptional0 'reate payments or receipts for bank statement transactions with no matching -ayables or *eceivables activity. 1>. *everse any 7S: or rejected bank transactions. 1?. $ptionally, when you have reconciled all the bank statement lines, mark your bank statement as complete. 1@. Save your work. 14. You can review the results of reconciliation in the following reports:
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!ank Statement ,etail *eport