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Sew User Guide-Transfer Of Funds

Transfer Of Funds

User Guide

Release 12.1.3

Author: Simhadri Kommineni

Reviewers: Sridhar Chalasani, Mahesh Valem


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Transfer Of Funds

Overview of the Bank Account Transfer Feature:

The transfer of funds between internal bank accounts is a common business practice. This type of transfer allowsfunds to be available to the proper internal bank accounts, which ensures business operations can run smoothly.

Mandatory Terms:

Payment Template: A payment template is used if a specific bank account transfer is performed frequently. The

payment template provides default values to the bank account transfer. This is an optional.

*Source Bank Account: Bank account from which funds are disbursed.

*Destination Bank Account: Bank account that receives the funds.

Funds transfer basically can be done in 2 ways:

1. When a payment document is required. 2.When you do not require payment document to be generated.

1. When a payment document is required:

This is used when for example you draw a check to make the bank transfer or any other payment document. For this purpose, selectthe option "Settle through Oracle payments" as "Yes". Fill in the rest of the fields and validate the the transfer.

This will create a transfer transaction with the status as "Settlement in Process".

After this you need to go to the funds disbursement process manager and issue the payment document. Process similar to the batch

payment in AP.

The bank account transfer can also be initiated through cash positioning by using Physical Cash pool.

Please note that this require the intercompany or intracompany rule to be set in the ledger depending on the type of transfer you aremaking.

Business Scenario:

To demonstrate the Bank Account Transfer feature, the following example of a fund transfer is provided:

1.Transfer Rs:50,000/- from Bank Account Number SBI-Cag-1351 To Bank Account Number SBI-Champa-MBP.

Setup Level:Define Payment Template(Optional):

Navigation: Cash Management Responsibility > Setup > System > PaymentTemplate > Create


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General Details tab

Template Code: Identifies a specific template. The template code entered for the bank account transferfrom bank account number SBI-CAG_Somajiguda_10283931351 to SBI-Champa-31922606231.

Authorize Transaction: Indicates whether this specific funds transfer requires approval in OracleApplications. This value can be overridden when you create the actual bank account transfer. In this

example, the value is No.

Settle Transaction: Indicates if you want to settle the transaction using Oracle Payments. In thisexample, you want to generate the payment instructions using Oracle Applications.Therefore, the value

of this field is set to Yes.

Source Bank Account: Details of the bank account from which funds are disbursed.

Destination Bank Account: Details of the bank account to which funds are transferred.

Payment Details tab

Payment Method: This value indicates the payment method by which the funds will be disbursed. Any

valid payment method for funds disbursement can be selected. Before selecting a specific paymentmethod, you should ensure that the funds disbursement is properly configured. This includes creating avalid Payment Process Profile (PPP). Payment Method is a mandatory field only if the value of Settle

Transaction is set to Yes in the General Details tab. In this example, we will select an electronic or wirepayment method.

User Action Level:

1.Create a Bank Account Transfer:

Navigation: Cash Management Responsibility > Bank Account Transfer


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2.The bank account transfer transaction can be created using one of the following two methods:

A.Entering all of the required details, such as the bank account number, for the bank account transfer.

B.Obtaining the field values from a defined payment template.

In this example, you have defined a payment template for the transfer from bank account number SBI-Cag-HO to bankaccount numberSBI-Champa-MBP ; therefore, the field values will default to the values listed in the payment template, SBI-Cag-HO To SBI-Champa-MBP.

a. Select the payment template from the list of values.


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b. When the payment template is selected, the field values will default to the values in the template.

c.Enter the values for the remaining fields, such as the Transfer Date field.

d. Edit the default values, if necessary. Click on the Apply and Validate button.

e. This will create the bank account transfer transaction.

f. Observe the following attributes of the bank account transfer transaction:

Transfer number: This is the bank account transfer number. In this example, the transfer number is 26.

Transfer Date: This is the date of the bank account transfer transaction.

Status: This is the status of the bank account transfer.


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3.Settlement Of a Bank Account Transfer:

Payment Creation:

Navigation: Fund Disbursement Process Manager Responsibility > Home

a. Click on the Take Action icon for the corresponding payment request. In this example, this is PPR 27.


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Internal Bank Account: This is the account from which funds are disbursed. The value defaults to the source bank

account designated in the bank account transfer transaction.

Payment Process Profile (PPP): PPP is used by Oracle Payments to process the payment request. In this example,the submitted PPR is awaiting user input from the PPP.

b. Provide a value for the PPP. Click on the Go button to run the PPR.

c. Check the status of the PPR.

Status: This field displays the status of the PPR.


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4.Payment Instructions Generation:


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This request will create the payment instructions for all of the PPRs with the following attributes:

1. Status of Payment Initiated

2. PPP value of Wire Payment

a. Check the status of the PPR.

b. Check the status of the bank account transfer.


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c. Check the details of the bank account transfer by clicking on the Transfer Number link.

d. Check the generated cash flows by clicking on the View Cashflows button.

Bank Account Transfer has created the following two cash flows:

1. The outgoing cash flow for the source bank account. In this example, this is Cashflow Number 7.

2. The incoming cash flow for the destination bank account. In this example, this is Cashflow Number 8.

This completes the creation and settlement of the bank account transfer.

If the PPP type is Printed, then record the print status. However, if the PPP type is Wire Payment, continue to the next

section.


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5.Reconciliation and Accounting:

5.1 Reconciliation and Accounting for the Source Bank AccountNavigation: Cash Management Responsibility > Bank Statement > Bank Statement and Reconciliation

The creation of the bank statement for the source bank account 10283931351 is displayed below.

The value of Status is Unreconciled.

The value of Type is Payment. From the bank statement, you can see that the payment has been disbursed from the sourcebank account.

a. Click on the Available button.


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b. Reconcile the cashflow using Cashflow Number 7.


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The value of Status is Reconciled.

c. Run the Create Accounting request to begin the accounting of the reconciled bank account transfer from the

source bank account.

d. Submit Create Accounting programming and see the output.

5.2 Reconciliation and Accounting for the Destination Bank Account:Navigation: Cash Management Responsibility > Bank Statement > Bank Statement and Reconciliation


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The value of Type is Receipt. From the bank statement, you can see that the destination bank account shows that it has

received the transfer.



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c. Click on the Reconcile button.

d. Run the Create Accounting request to begin the accounting of the reconciled bank account transfer from the destination

bank account.

e. Create an accounting output file.


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2.When you do not require payment document to be generated:

This is used when the transfer has been made by the bank and you just have to record the same into the system. For this purpose, you

can go to the bank account transfer window and select the option "Settle through Oracle payments" as "No". Fill in the rest of thefields and validate the the transfer. This will create a transfer transaction with the status as "Settled".

You can also provide a standing instruction to the bank to make the bank transfer and would be know about the transfer through thebank statement. You can create the bank statement line as a sweep in or sweep out line and record the bank account transfer.

Business Scenario:

To demonstrate the Bank Account Transfer feature, the following example of a fund transfer is provided:

Transfer Rs:1,00,000/- from Souece Bank Account Number SBI-Cag-1351 To Destination Bank Account Number Axis-Begumpet-6935.

User Action Level:

1.Create a Bank Account Transfer:


General Information tab:

Entering all of the required details, such as the bank account number, for the bank account transfer, transfer

date, currency and transfer amount.

Authorize Transaction: Indicates whether this specific funds transfer requires approval in Oracle

Applications. This value can be overridden when you create the actual bank account transfer. In thisexample, the value is No.


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Settle Transaction: Indicates if you want to settle the transaction using Oracle Payments. In thisexample, you want to generate the payment instructions using Oracle Applications.Therefore, the value

of this field is set to Yes. If no need to settle the transaction using Oracle Payments the value of the field is set toNo.

Source Bank Account: Details of the bank account from which funds are disbursed.

Destination Bank Account: Details of the bank account to which funds are transferred.

Payment Details tab

Payment Method: This value indicates the payment method by which the funds will be disbursed. Anyvalid payment method for funds disbursement and bank charge bearer can be selected. Before selecting a specificpayment method, you should ensure that the funds disbursement is properly configured. In this example, we will

select an electronic or wire payment method.

After above information are filled select apply and validate.

Check the details of the bank account transfer by clicking on the Transfer Number link 41.


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Check the generated cash flows by clicking on the View Cashflows button..

Bank Account Transfer has created the following two cash flows:

1. The outgoing cash flow for the source bank account. In this example, this is Cashflow Number 21.

2. The incoming cash flow for the destination bank account. In this example, this is Cashflow Number 22.

This completes the creation and settlement of the bank account transfer.


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2.Reconciliation and Accounting:Reconciliation and Accounting for the Source Bank AccountNavigation: Cash Management Responsibility > Bank Statement > Bank Statement and Reconciliation

The creation of the bank statement for the source bank account 10283931351 is displayed below.


The value of Type is Payment. From the bank statement, you can see that the payment has been disbursed from the source

bank account.



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The value of Status is Reconciled.

ci. Run the Create Accounting request to begin the accounting of the reconciled bank account transfer from the

source bank account.

d. Submit Create Accounting programming and see the output.

5.3 Reconciliation and Accounting for the Destination Bank Account:

Navigation: Cash Management Responsibility > Bank Statement > Bank Statement and Reconciliation


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The value of Type is Receipt. From the bank statement, you can see that the destination bank account shows that it hasreceived the transfer.



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c. Click on the Reconcile button.

d. Run the Create Accounting request to begin the accounting of the reconciled bank account transfer from the destinationbank account.

e. Create an accounting output file.

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