Bank statement reconciliation in oracle apps

Bank statement reconciliation in oracle apps

Oracle Application provides the feature for the Bank reconciliation. Bank Reconciliation is the Process through which we do reconcile the Oracle Payments and receipts with the Bank Generates Bank Statements. Bank Statement is the list of Actual Payment and the Receipts which were actually happened in the Bank and according to that statement , We are actually clearing our Payments and Receipts in the Oracle System otherwise these Payments and Receipts remain in the status of 'Negotiable" in the Oracle apps. Here I will explain step by step process of Bank Statement reconciliation in Oracle.

 

What is Bank Statement reconciliation

Bank Statement is the list of Actual Payment and the Receipts which were actually happened in the Bank. For Example , You have done the Two Payments in Oracle System for your supplier. But in the Bank Site , Bank has only cleared the First Payment to your supplier and Second Payment is Still in Process. SO when bank will share the statement , Then it will list only the First Payment , Which is Cleared. So according to that statement , We will also clear that Payment in the Oracle System and Other Payment will still remain in the "Negotiable" Status.

 

Step by Step to do the Bank statement reconciliation in oracle apps

Step1:- Oracle apps supported the Bank Statement in three Format.

1.Swift940

2.BAI2

 

Most of the Banks provides the Bank Statement in Swift940 format. We need to use these Existing Formats for Bank statement reconciliation if we want to use the standard Oracle Provided Formats.

 

The Reason , Why we need to use the Oracle Apps Standard formats because oracle apps has designed the mappings of these Files formats with the Bank Statement Interface Tables.

 

As below this is the Bank statement Mapping Navigation.

 

 

 

 

 

 Step2:- As below this is the standard Mapping of the Swift940.

 

 

 Step3:- Now We need to get the Sample File from Bank to Create the Transactions Code. These Transaction code identifies that whether the Transactions in the Bank Statement Would be treat as a Payment or Receipt in oracle Apps.

 

Setup ==> Banks ==> Bank Transactions code

 

 

 

Step4:-  Bank Transactions Code

 

 

 

Step5:- These are the Transactions code we have created as below. But its recommendable to ask from bank about these Transactions code and the same should be created in the System.

 

 

Step6:- We Need to create the Bank , Branch and Bank Account setup also for the Bank statement  Reconciliation.

 

Oracle has provided the Three Standard Programs for Bank statement reconciliation.

1. Bank Statement Loader

 

2. Bank Statement Import

 

3. AutoReconciliation

Bank Statement Loader :- This Program Helps to Load the Bank Statement from File to the Bank Statement Interface Tables.

 

Enter the Data File Name and the Directory Path in which this File Placed.

 

 

Bank Statement Import :-

 

Bank Statement Import program helps to Import the Bank Statement from Bank Statement Interface Tables to the Bank Statement Base Tables.

 

Enter the Statement Number if you know or run it open without Parameters.

 

 

 

 

AutoReconciliation :-

 

Once the Bank Statement Imports in the Oracle Base Tables then we have two options to reconcile this statement with Our Oracle System payments and the Receipts.

 

1. We can reconcile the Bank Statement Manually.

2. We have the Standard Program "AutoReconciliation" to reconcile the all the Bank Statement automatically.