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In this Document Goal Fix References

Applies to:
Oracle Cash Management - Version 12.0.0 to 12.2 [Release 12 to 12.2] Information in this document applies to any platform.

Goal
Concepts. (1). What is the Bank Account Model in R12? (2). You need to decide how to proceed with Bank Account setup in following example scenario: You have 4 main banks (ABN, AIB, Wells Fargo and HSBC). The ABN bank has about 20 different accounts in about 7 different countries. Do you need to set up 7 different banks for ABN? you would like to just set the bank once, and set up branches for the countries, is that best practice? Therefore the questions you need to address are: Q1: Why Country Tied to Bank? Q2: What is the significance of Bank Account granted to multiple operating units? Q3. How to use above criteria to decide how you plan to proceed on the situation?

Fix
Concepts: A. Legal Entity. An organization that represents a legal company for which you prepare fiscal or tax reports. Tax identifiers and other relevant information are assigned to this entity. B. Organization. A business unit such as a company, division, or department. Organization can refer to a complete company, or to divisions within a company. C. Bank Account Model Overview: The Bank Account model allows users to define and keep track of all bank accounts in the eBusiness Suite in one place and explicitly grant account access to multiple operating units/functions and users. Bank accounts for internal use are consolidated in:

 Payables Receivables Treasury Global Financials CRM The Bank Account model reduces the number of access points to manage bank accounts by providing a centralized user interface where all internal bank accounts can be set up. Bank account access in this model can be granted to multiple operating units, thus eliminating the redundant duplicate bank account setup under different operating units in case these operating units share the same bank account. This will also simplify the reconciliation process since now one bank account is the system corresponds to one bank account at the bank. D. Bank Account Access Security: The Bank Account Access security rule feature is built on top of Bank Account Access Setup and Cash Management Security Profiles. Bank Account Access setup provides a list of organizations that have access to a given bank account; whereas Cash Management Security Profiles provides a list of organizations an application user has access to. If there is at least one common organization between Bank Account Access setup and Cash Management Security Profile then users will be granted access to the bank account. For example, if bank account 101 has account access setup with operating unit OU1, and if user OPERATIONS has access to OU1 in the profile, then the user can view and use bank account 101. E. Bank Account Access Setup: Bank Account Access setup defines the uses (Payables, Receivables, Payroll, and Treasury) of bank accounts and organizations that have access for each use. One or more operating units can be assigned to Payables or Receivables Use. Only one legal entity can be assigned for Treasury Use. The legal entity that is assigned to Treasury use is always the same as bank account owner. Lastly, one or more business groups can be assigned for Payroll Use. F. Cash Management Security Profile: Cash Management Security Profiles provides a list of organizations (OU/LE/BG) that the user has access to based on following four security rules: Bank Account Use security, Treasury security, MOAC security and Payroll security. - Bank Account Use security grants users the access to one or more legal entities. Bank Account Use security setup is required to reconcile cashflows in bank statement reconciliation. Bank statement line can be reconciled to a cashflow only if access to the cashflow LE is granted when setting up Bank Account Use security. - Bank Account Use security setup is also required if the user does not have MOAC, Payroll or Treasury security set up, but wants to include bank accounts in Cash Forecasting, Cash Positioning, and Cash Pools. Only those bank accounts whose owner LE is registered in Bank Account Use security will be able to access these features. - Bank Account Use security is implemented using the UMX data security model. A setup wizard called Cash Management Security Wizard facilitates the setup procedure. - Treasury security defined in Oracle Treasury provides a list of legal entities that Treasury users

have access to. - MOAC security provides a list of operating units that a given user has access to. - Payroll security returns a business groups that a given user has access to based on the PER_BUSINESS_GROUP_ID profile option. To Define: 1. Define the bank account at the legal entity level. Legal Entity Manager > Legal Entities > Create Legal Entity 2. To associate Operating unit to the Legal entity, please execute the following steps:: 1). 2). 3). 4). 5). Go into the responsibility: Inventory Supper user Navigate to MENUPATH >Setup / Organizations Query the Operating unit and assign the Legal entity Retest the issue. Migrate the solution as appropriate to other environments.

3. System Parameters Window Reference: You can set the following Cash Management options from the System Parameters window. Legal Entity: The name of legal entity that system parameters are applied to. Ledger: The name of the Ledger for Cash Management accounting transactions. This value defaults from the GL Data Access Sets profile option. Cash Management supports multiple ledgers. Each legal entity is tied to a ledger. If you deal with multiple legal entities, you set up System Parameters for each legal entity. Begin Date: Cash Management will not display transactions dated earlier than this date. 4. Create Bank Account: Account Owner and Use: 1). Enter the Bank Account Owner; the legal entity that owns the account. 2). Select the types of functions that this bank account is going to be used for: Payables, Payroll, Receivables, Treasury, or all. If the Treasury option is disabled, you have not linked this bank branch to the counterparty in Treasury. 3). Click Next. | 5. Create Bank Account: Account Access: 1). Click Add Organization Access to define for which organizations and in which functional areas Payables, Payroll, Receivables, Treasury, or all for which this bank account can be used. For example, you can let Operating Unit # 1 use this bank account in Payables and Receivables, but limit Operating Unit # 2 to use this bank account only in Payables. If you choose a particular functional area for you bank account, you will be taken to the page where you may be required to enter certain bank account attributes that are unique for this particular functional area. It is also important to note that if you

grant Operating Unit # 1 access to this bank account in Payables and Receivables, then all users who have been granted access to Operating Unit #1 will be able to use this bank account in Payables and Receivables (provided that the functional access has been granted to these uses as well). 2). Select the types of functions that this bank account is going to be used for: Payables, Payroll, Receivables, Treasury, or all. If the Treasury option is disabled, you have not linked this bank branch to the counterparty in Treasury. 3). Select the business group as the Organization. 4). Click Apply. 5). Click Save and Next.

To answer this please evaluate following: (1). 1. Central place to define internal bank accounts This feature will allow 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 Payables, Receivables, Treasury and Global Financials are consolidated in Release 12. 2. The new model will reduce the number of access points to manage bank accounts by providing a centralized user interface where all internal bank accounts can be set up. Bank account access in the new model can be granted to multiple operating units, thus eliminating the redundant duplicate bank account setup under different operating units in case these operating units share the same bank account. This will also simplify the reconciliation process since now one bank account is the system corresponds to one bank account at the bank. 3. The key setup steps are: 1). Define Banks in Oracle Cash Management. 2). Define Bank Branches in Oracle Cash Management. If you intend to use this bank account in Oracle Treasury as a company bank account, switch to that application, define Bank Counterparties and link them to Bank Branches that you have created. If you do not intend to use this bank account in Oracle Treasury, skip this step and proceed straight to the Bank Account definition. 3). Then, create your Bank Accounts in Oracle Cash Management. If you do not intend to use this bank account in Payroll, then the setup process is complete for you. If you intend to use this bank account in Payroll, switch to that application and add Payroll properties. 4. Navigation: Bank and Account Administration: Banks and Bank Branches When you access the bank setup, the first page shows you all the banks, bank branches and accounts that have already been created. You can navigate the hierarchy at the country, bank, branch and bank account level. The fact that the accounts are grouped by country is no accident. In Release 12, the system supports country specific validations for the bank account and address format. When entering new bank accounts, the format and content of the Bank Number, Branch Number, Account Number and Check Digit will vary according to the country specific rules. The countries that are supported

in Release 12 are Austria, Belgium, Denmark, Finland, France, Netherlands, Norway, Portugal, Spain, Brazil, Colombia, Germany, Greece, Iceland, Ireland, Italy, Luxembourg, Poland, Sweden, Switzerland, United Kingdom, and United States. 5. Navigation: Bank and Account Administration: Banks and Bank Branches: Banks: Create The first step in the bank account creation is the bank definition. This page allows you to search for existing banks, view and update them or create new banks. 6. Navigation: Bank and Account Administration: Banks and Bank Branches: Banks: Create When creating a new bank, you can either create a bank from scratch or add bank details to an existing party defined in your Trading Community. You can also create a Clearing House entity by choosing the appropriate institution type. 7. Navigation: Bank and Account Administration: Banks and Bank Branches: Banks: Create You can maintain several addresses for the bank in case, for example, when the bank has different mailing and physical locations. One of the addresses has to be marked as a primary or identifying. 8. Navigation: Bank and Account Administration: Banks and Bank Branches: Banks: Create Similar to multiple addresses, you can maintain multiple contacts at the bank. 9. Navigation: Bank and Account Administration: Banks and Bank Branches: Bank Branches Bank branch creation is the next step after the bank creation. This page allows you to search for existing bank branches, view and update them or create new bank branches. 10. Navigation: Bank and Account Administration: Banks and Bank Branches: Bank Branches: Create Similar to the bank creation process, bank branch creation will take you through several steps. 11.Navigation: Bank and Account Administration: Banks and Bank Branches: Bank Branches: Create 12. Navigation: 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, you, first of all, need to check the Bank Branch check box. After you do that, a list of values will be enabled in the Full Name field. All the available bank branches will be shown there. 13. Navigation: Bank and Account Administration: Bank Accounts Once you are done with the bank branch creation, you can proceed to the bank account setup. This page allows you to search for existing bank accounts, view and update them or create new bank account. 14. Navigation: Bank and Account Administration: Bank Accounts: Create Select the bank branch to which your bank account belongs and proceed to the bank account setup. In the first step you will have to select the owner of the bank account the legal entity that opened this account at the bank. In the following steps you will be able to define which organizations within your company will be able to use this bank account.

On the same page please 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. 15. Navigation: Bank and Account Administration: Bank Accounts: Create 16. Navigation: Bank and Account Administration: Bank Accounts: Create It should be noted that in Release 12 the reconciliation parameters have been moved from the system level to the bank account level. Now you can have unique reconciliation parameters for each bank account. 17. Navigation: Bank and Account Administration: Bank Accounts: Create In this step you will define in which functional areas Payables, Payroll, Receivables, and/or Treasury this bank account can be used and by which organizations. For example, you can let Operating Unit #1 use this bank account in Payables and Receivables, but limit Operating Unit #2 to use this bank account only in Payables. If you choose a particular functional area for you bank account, you will be taken to the page where you may be required to enter certain bank account attributes that are unique for this particular functional area. It is also important to note that if you grant Operating Unit #1 access to this bank account in Payables and Receivables, then all users who have been granted access to Operating Unit #1 will be able to use this bank account in Payables and Receivables (provided that the functional access has been granted to these uses as well). (2) A1: Why Country Tied to Bank? The fact that the accounts are grouped by country is no accident. In Release 12, the system supports country specific validations for the bank account and address format. When entering new bank accounts, the format and content of the Bank Number, Branch Number, Account Number and Check Digit will vary according to the country specific rules. The countries that are supported in Release 12 are Austria, Belgium, Denmark, Finland, France, Netherlands, Norway, Portugal, Spain, Brazil, Colombia, Germany, Greece, Iceland, Ireland, Italy, Luxembourg, Poland, Sweden, Switzerland, United Kingdom, and United States. Bank Account: The bank account identification number. The combination of Bank Account Number, Bank Branch Number, Account Use, and Currency must be unique for each bank. Refer to your countryspecific documentation on validation that the system performs on the bank account number for specific countries. Please note: The current bank account and branch validations are with respect to the bank defined for a country. If the accounts are defined, then they are validated with respect to the bank defined at the country level. Example: If a Bank defined in country USA then you have to have Branch and Account Defined within USA. A2: What is the significance of Bank Account granted to multiple operating units?

Bank accounts for internal use in Payables, Receivables, Treasury and Global Financials are consolidated in Release 12. Bank account access in the new model can be granted to multiple operating units, thus eliminating the redundant duplicate bank account setup under different operating units in case these operating units share the same bank account. This will also simplify the reconciliation process since now one bank account is the system corresponds to one bank account at the bank. To summarize: Single bank account definition can be used across different organizations and functions - Centralized maintenance - Explicit usage permission - Simplified reconciliation - Cross-unit reconciliation - Bank account level reconciliation parameters A3: How to use above criteria to decide how you plan to proceed on the situation? - Country specific definition required - Which account can be used by enabling them for at LE/OU - Within Country for an account use of Branch can be done.

References
NOTE:559181.1 - R12 Bank Account Validation Rule Failed for Netherlands

Related
Products

Oracle E-Business Suite > Financial Management > Cash and Treasury > Oracle Cash Management > Bank > Bank Account Issues

Keywords
ACCOUNT NUMBER; ASSOCIATE; BANK ACCOUNT; BUSINESS GROUPS; BUSINESS UNIT; CASH MANAGEMENT; LEDGER; LEGAL ENTITY; MANAGE BANK ACCOUNTS; MODEL; OPERATING UNIT; ORGANIZATION; RECONCILIATION
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