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External Transactions and Automatic Bank Reconciliation

Guest post by
Kiran A. Mathew, Senior Associate Consultant, Infosys

 

Lack of internal controls on reconciliation and estimation cash in your organization can lead to various issues like:

  • Lack of holistic view of cash position which impair management decisions
  • Misappropriation of Cash and other fraudulent activities.

Organizations always resort to bring in the internal controls in cash position analysis and reconciliation process to address these issues.

Un-reconciled orphan transactions from external applications, un-reconciled bank statement lines and an error prone manual reconciliation process are some of the challenges which finance department faces during cash position analysis. The process becomes even more complex and time consuming depending upon the volume of transaction.

Organizations look forward to automating the bank reconciliation process to minimizing the risk of errors and frauds. The automation process still faces limitations/hurdles with external transaction sources for payments and receipts which arising out of co-existence scenarios.

Oracle Fusion Cash Management module ensures accurate recording of cash transactions through the External Transaction Creation Feature. You can create external transaction via:

  • Manual Entry
  • Import using Create External Transaction Program
  • Balancing transactions created by the automated reconciliation process
  • Bank statement creation program to record the un-reconciled statement lines

 Kiran - 1111.jpg

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Figure 1: Oracle Fusion Cash Management Process Flow

Once external transactions are created in Oracle Fusion Cash Management, they are accounted and reconciled with the imported bank statements. In order to create transactions from unreconciled statement lines like bank charges, interest etc. the bank statement transaction creation program can be used by configuring rules to create transactions in the system.

Oracle Fusion Cash Management promises a streamlined and automated financial accounting and reconciliation model for your enterprise by reducing manual interventions and leaving no allowances for redundancies, errors and fraudulent activities.

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