Oracle EBS - Cash Management : Creating Bank Charges

During the times I sharing views on Oracle EBS R12 with clients, I have seen that most of them are not using the full functionality of the App. Ultimately they have to continue with lots of manual work where they can use Oracle instead of them. 

Bank Charges Generation is one simple area which I observed in Oracle Cash Management. 

Prerequisites

• Completes with the Bank Statement Mappings

Navigation - Cash Management Super User > Setup > Banks > Bank Statement Mappings

• Creation of Transaction Code for Bank Charges (This is only need if the MT940 bank statement format not providing a specific transaction code for bank charges)

Navigation - Cash Management Super User > Setup > Banks > Bank Transaction Codes

• Bank Statement Cashflow Mapping Creation

Navigation - Cash Management Super User > Setup > Banks > Bank Statement Cashflow Mappings

Use the Bank Statement Cashflow Mappings window to link the relevant transaction code which define for bank charges and the specific GL account code combination for Bank Charges. At the end of the create accounting program this will be the account which get Debited from the Bank Charges. So the double entry will be,

Cr - Bank Account (Bank Statement Account which contains bank charges)

Dr - Bank Charges Account (Which defined in Bank Statement Cashflow Mappings window )

Once the users have completed all the above prerequisites they have to load and import the bank statement to the Bank Statement Lines widow. 

1.Bank Charges Creation

After identifying the bank charges users can update the “Code” field relevantly with the transaction code associate with bank charges. EX 110 – Bank Charges.

After the changes the bank charges line will look like following.

2.Bank Statement Cashflow Creation

By processing the Bank Statement Cashflow Creation program the Cash Management module will create a cashflow for those bank charges. Process the program accordingly with the bank details where we did the above process.

Upon completion of the above process Oracle will automatically process with the bank statement cash-flow creation execution report and it will have all the data relate to bank charges.

Using the above generated Cashflow Number users can query the transaction in Cash Management, Casshflow form as well. In the above example it is "1385"

 3.Process the Create Accounting Program from CM module

Users will have to process the “create accounting program” from cash management module with the process category of “Bank Statement cashflows”. This will generate double entries for the bank charges in GL.

Create Accounting program will give the following out put. It is containing the relevant double entry details as I explained in the very beginning of the blog.

4. Post the entry in GL

The “Create accounting program” will create the following double entries in GL related to the Bank Charges.

Dr – Bank Charges Account

Cr – Bank Account

These lines will also have the description in the bank statement line as the journal description as well.