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We just implement one company using Oracle cloud (small amount of transactions) and user reported that the bank reconciliation is not very efficient base the condition for matching is not flexible enough so she did not use auto-reconciliation instead of manual reconciliation.
Can anyone share with me how to use or setup in order to increase the percentage of auto-reconciliation?
Thanks.
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Hi Glen,
No matter the supplier and customer name are different between in Oracle and Bank statement.
Now for AR and AP we use one to one matching and by date and amount. Actually we capture another vendor or customer name in DFF field at master level, if this is the case, how to setup the matching criteria for this?
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Hi Amy,
Sorry, got very busy there. But are you getting transaction identifiers back on your bank statement lines? If you're originating payments from Oracle AP, there should be a check number (or ACH number) coming back to you on the bank statement that you should seek to reconcile on first (one-to-one). If not, I'd work with your bank to make sure you get that as better matching criteria than the vendor name.
And similar question for AR - could (or does) your bank provide you with the customer check number that you could have populated on the Oracle AR receipt?
Glen
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Thanks Glen. I will try your suggestions but not sure bank can add this in our bank statement.
Let me try.
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Hi Amy,
To be clear, I'd expect you're passing up the AP payment numbers and the bank is only sending them back on the bank statements. Are you initiating payments from Oracle AP that you send to the bank via a file (like NACHA for ACH or MT103 for wire) or that you print from Oracle (for physical checks)?
Glen
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Hi Glen,
Most of the payment from Oracle we EFT (ACH) and directly print physical checks.
Thanks.
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Hi Amy,
So do you receive those Oracle payment numbers back from your bank in your bank statement file? Most banks will provide the check numbers automatically, you'd then just need an Oracle Parse Rule to move the field (probably 'Customer Reference Number') into the Reconciliation Reference FIeld. That should give you a 1:1 match on printed check numbers.
For ACH, is the bank able to give you details (i.e., one bank statement line per ACH originated item)? If so, you can do 1:1 matching there as well. Or if they (like most banks I've encountered) can only give you a single bank statement line for the ACH batch originated, then you'd be looking at a 1:M match. Are you able to do either of those approaches for your EFTs?
Glen
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Hi Glen,
For check payment, I have made some changes, please see attached file.
For EFT ACH, the bank can only give me a single bank statement line for ACH batch originated, so that case is 1:M.
How to combine these two criteria (check and EFT ACH) into one rule?
Really appreciate your time to support.
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Hi Amy,
Now you're getting down to the details that you need to, where you have to look at the data your getting from the bank. But in short, you build a reconciliation rule set that applies reconciliation rules in a ranked order. You first rule for AP will generally be like the one you have in your screenshot, trying to make a 1:1 match on reconciliation reference (which should cover all your printed checks). After that, the next rule could be a 1:M rule based on reconciliation reference (if you can get your bank to give you back your Oracle file_id as your EFT batch number) or just date and amount (if you don't have a batch reference). In the latter case, you group system transactions by their PPR - so that tell Oracle what system transactions fall under the 'many' in your 1:M rule.
That's high level, but your implementation team should have started this CM setup for you. Did they not set you up with at least a basic reconciliation rule set along those lines? Or is it that what they set up just doesn't match the bank statement data your getting? If they're new bank accounts, sometimes you don't have the benefit of seeing real statement data until after go-live. So this type of AutoReconciliation tuning is something you should expect to tackle after stabilization.
Does that help?
Glen
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