Many of you might have known it earlier, but people who don’t know, setup of Banks are moved into the Cash Management Module. The short name for Cash Management is CE.  In this Article, we will discuss how to Create Banks / Bank Branches , step by step.
Responsibility – Cash Management Super User
Navigation – Setup – Banks – Banks
Clicking on this opens an OAF page
Click on Create – opens the following.
Enter the necessary details required and click Save and Next.
Update the Bank Addresses by clicking on Create
Enter the information and click on Finish
Click on Save and Next
Click on Create Contact .
Enter the necessary information required.
Click Apply once the details are entered.
Click on Finish.  The bank details are here in this screen.
Bank is Created Successfully. Now we will see how to create a Branch underneath the Bank which we just Created.
Click on Create Branch icon
Click on Continue from the below screen
In the below screen enter the Branch Details as shown
Click Save and Next.
Click on Create button in the above screen to add the Branch’s address
Enter the address and then click Apply.
Click Save and Next
Click on Create Contact button to add the Contact Details
Click on Apply
Click on Finish.
To Create Account – click on the Icon below…
Click on Create button from the below screen
Enter the details in the screen below
Click on Continue
Enter the necessary details in the screen above
Click on Next
Click on Save and Next
In R12, banks are moved into Trading Community Architecture(TCA). Now Cash Management owns the internal bank setup definition.

Benefits of new Bank Account model:
  • There is a central place to define internal bank accounts. So with centralized user interface, users can reduce the number of access points to manage bank accounts
  • With the help of Multi-Org Access Control, we can explicitly grant account access to multiple operating units/functions and users, which improves the visibility and control of bank accounts
  • A single Legal Entity is granted ownership of each internal bank account and One or more Organizations are granted usage rights. So, a single bank statement can be reconciled across multiple Operating Units, which helps to simplify reconciliation process.
  • Reconciliation options can now be defined at the bank account level, which provides more flexibility and control to the reconciliation process.
Bank structure in 11i:

Bank structure in R12:
In R12, Banks are part of TCA and the same bank accounts can be used in Payables, Receivables, Payroll and Treasury.

Impact of Upgrade:
All the internal bank accounts of 11.5.10, will be migrated into Centralized Bank model automatically during the upgrade.

Tables to store the bank information in R12:

The new tables that store bank information are now under Cash Management as follows:

CE_BANK_ACCOUNTS    
                 Contains Legal Entity Level bank account information. Each bank
                                                              account must be affiliated with one bank branch.

CE_BANK_ACCT_USES_ALL           Stores Operating Unit level bank account use information.

CE_PAYMENT_DOCUMENTS  
         Stores payment Documents to be used for Printed type Payments

CE_BANK_BRANCHES_V      
           View: Bank/Branches Info

CE_BANK_ACCT_USES_OU_V 
       View: Internal Bank Account Uses Info

The following tables were obsoleted in R12, in which Bank Data was stored in R11i:

AP_BANK_BRANCHES
AP_BANK_ACCOUNTS_ALL
AP_BANK_ACCOUNTS_USES_ALL


In R12, Internal bank accounts can be created in Cash Management (Setup -> Banks). Where can we define Supplier (or External) bank accounts?

Supplier (or External) bank accounts can be created in Payables, by using Supplier Entry forms.  In the Payables Manager responsibility:

1. Navigate to Suppliers -> Entry.
2. Query or create your supplier.
3. Click on Banking Details and then choose Create.

After creating the bank account, we can assign the bank account to the supplier site.

Cash Pooling Techniques are used by the Organizations to optimize the funds by consolidating bank balances across multiple bank accounts.

Benefits of Cash Pooling Techniques:

– Minimizes the idle funds by consolidating balances
– Helps to decrease external borrowing costs and increase investment returns
– Allows users to group bank accounts into pooling structures to manage funds effectively

Oracle supports following types of cash pools:

1. Self-Initiated Physical Cash Pools:

When Organizations want to monitor individual bank account balances manually and then physically move cash to or from their accounts based on their preferences, Self-Initiated Physical Cash Pools structure can be used.

We can define the rules in pool definitions, to automatically determine when bank account transfers should be made and for what amounts.

2. Bank-Initiated Physical Cash Pools, or Zero Balance Accounts(ZBA’s):

Bank-Initiated Physical Cash Pools are used When Organizations want to sweep all end-of-day balances automatically to or from the main accounts.

This kind of services will leave zero balances at the end of way. That is the reason, Bank-Initiated Physical Cash Pools are often called as Zero Balance Accounts.

3. Notional Cash Pools:

If Organizations want to track the net balances across all accounts along with individual accounts, then Notional Cash Pools will be used.

In 11i, this functionality was available to Oracle Treasury users, but now it is supported by Oracle Cash Management in R12.