Payables & Cash Management

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Topic

    Pam Clark
    Cash Management and Ad-Hoc Payments
    Topic posted August 28, 2019 by Pam Clark, tagged Cash Management 
    47 Views, 9 Comments
    Title:
    Cash Management and Ad-Hoc Payments
    Summary:
    Who is using cash management to originate transactions?
    Content:

    Hi, I'm trying to determine how common it is to use cash management to originate bank transactions instead of going directly into bank system to initiate them. For example, ad-hoc wire transfers, or transfers between bank accounts. Do you use the cash management system to initiate these, or do you enter them directly into your bank system and record them after the fact? Thanks.

    Comment

     

    • Logan Wacker

      Many of our clients are using cash management to originate payments. Telling a client to go to the bank portal after you’ve established  bank integration isn’t a best practice. Plus this helps facilitate bank recon.

    • Kevin McCulley

      Our AP dept do not initiate ad-hoc payments in Cash Management, and instead use bank portal. This causes us some significant trouble with AP clerks not recording the payments in Oracle before the bank statement is loaded and significant delays in GL accounting.

      • Pam Clark

        Thanks, Kevin. That's exactly the kind of issue I would expect and hope to avoid!

        • Logan Wacker

          This is a perfect example of why we want to implement CM payments, but the biggest downfall is the fact that payment acknowledgements are not supported. Making a payment from Oracle and not having a bank acknowledgement to affirm a payment was processed successfully is a significant gap. Where as at least a bank portal will provide this.

          Thanks.

          Logan

    • Glen Ryen

      Hi Pam,

      My experience is closer to Kevin's than Logan's, actually.  As efficient as CM-originate transfers and ad hoc payments might be, my heaviest CM users haven't chosen to use those features yet.  They'll generally chose to originate their inter-account transfers on the bank's portal, where they have the most up-to-date balances....but that's also due to the fact that they're loading only end of day and not intra-day bank statements to Oracle.  They used to key the transfer into Oracle manually to reflect the bank portal activity, but we've eliminated that step by setting up bank statement transaction creation rules (so the bank statement lines create the CM activity and generate the accounting).

      Kevin - If there aren't AP invoices for those payments that your AP clerks are making, then I'm in agreement with Logan - that's the classic case for ad hoc CM payments.  Are you making any AP payments via automated file transmission from Oracle?  Is something preventing you from creating AP invoices for that spend?

      Glen

      • Kevin McCulley

        Hi Glen

        Our problems with getting the information into Oracle are not technical, but operational frown Often once the cash transfer is made the process of creating the payment, or sometimes even the invoice and the payment, in Oracle can be many days after the cash was transferred. It causes some significant friction between the AP team and the Cash Rec team!

    • Manuel Mertens

      We are using ad hoc payments and bank account transfers.  The system creates the payment files automatically and you can upload in your banking portal (might even be automated). 

      Only issue is how to select the correct payment reference in the SEPA payment file so the bank statement line for the payment can be autoreconciled without manual intervention.

      Did anyone create / customize the standard Oracle xsl template

      'ISO20020 Single Euro Payments Areas' to include the Reference / Transaction Number of the external cash transaction that is created when the ad hoc payment/bank account transfer is approved ?

      thx for your help

      Manu

       

    • Glen Ryen

      Hi Manu,

      We customize the ISO XML almost every time to meet each bank's specific requirements, though usually not much.  That said, do you have any examples of the inbound bank statement lines for these transfers?  Often the identifier you need is in the 'Additional Entry Information' text string, or you bank could put it there for you.  If so, you could then use a CM Parsing Rule to put that Oracle ID into the Reconciliation Reference field and the statement line could then AutoReconcile based on the transaction number.  Does that make sense?

      Glen