The Cash Management feature in Oracle Payables 11i enables a user to reconcile payments created in Oracle Payables with bank statements. One of the excellent features of Oracle Payables is that it automatically creates accounting entries to the Cash, Cash Clearing, realized Gains and Losses, Bank Charges, and Bank Errors accounts as have been configured in the Oracle Bank setup.

The two main steps in reconciling bank statements in Oracle Payables 11i are as under:

Loading Bank Statements in Oracle - Information from each bank statement i.e. bank account information, deposits received and checks cleared have to be entered in Oracle Payables either manually or through electronic statements directly from the bank.

Reconciling Bank Statements - Once bank statements are loaded in Oracle Cash Management, Oracle starts reconciliation either automatically or manually as configured. In case of automatic reconcilations, bank statements are automatically matched with oracle transactions. This is generally recommended for banks with high volume transactions. On the other hand manual reconciliation requires one to manually match the oracle transactions with bank statements. This is ideal for banks with limited number of transactions.

Note that you can also use manual bank reconciliation facility for transactions which have not been reconciled using automatic bank reconcilaitions in Oracle Cash Management.

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