What does utopia look like? For some, it’s a quiet beach somewhere in the South Pacific. For others, utopia looks like the seamless integration of your Oracle environment with your commercial bank accounts.


Imagine: All approved supplier invoices in your ERP system are paid automatically, taking the most favorable terms offered by a supplier and using the currency and instrument of your choice. Bank statements periodically appear in a screen reconciling debits with payments. On the receivables side, remittance requests are sent to customers and each payment is applied to its corresponding invoice. Credits are reconciled – and all of this happens, as if by magic!


In less-utopic times, in order to get these functions, users had to implement (and maintain) elaborate and occasionally complex integrations into their Oracle systems – but no longer. Oracle Cloud Financials makes all this possible with out-of-box functionality. No need for additional time and money just to get set up, and no need to worry about maintaining integrations. Simply utilize plug-and-play features included in the Cloud Financials application.


Cloud Financials’ standard integrations are configured for making payments to third parties, capturing funds for customer receivables, bank statement reconciliation, and credit card transaction support. Oracle Cloud Financials provides an easy interface to meet all of an organization’s banking requirements. It also helps automate the processes required for monetary transactions and facilitates quick reconciliation with your bank accounts –  all so that you have better control over your funds.



Making Payments to Third Parties


The following diagram shows the process flow for making payments to third parties:


You can leverage scheduled payment process requests to automate all of the different payment methods that may be used. These are reconciled in Cash Management using the process described below.



Funds Capture for Customer Receivables


The customer payments process involves initiating payment requests and then clearing them when the funds are transferred.


Use the automatic receipt process to create a batch of receipts from selected transactions for payment by credit card or bank account transfer. You use automatic receipts for customers with whom you have predefined agreements. These agreements let you collect payments on time for open debit items by transferring funds from the customer bank account or credit card to your bank account on the receipt maturity date. You can use Lockbox to import and apply receipts when the currencies of the receipt and the transaction are different. If necessary, the customer can confirm the automatic receipt batch before transferring funds.


You can create one remittance batch per remittance bank account or clearing institution. Automatic receipts remit to your bank so the bank can transfer funds from customer bank accounts to your account on the receipt maturity date. You remit manual receipts so that the bank credits your account when the customer check clears.


Settlement batches are generally used with a processor payment system – a service provider that interacts with banks and card institutions (e.g. Visa, MasterCard, American Express, etc) to process financial transactions. A settlement batch is a group of settlements and credits that are sent to the payment system together in a file.



Bank Statement Reconciliation


The electronic bank statement process transfers bank statements and imports them into Oracle Fusion Cash Management. Cash Management supports the following four statement file formats:


  • BAI2
  • SWIFT MT940
  • ISO20022 CAMT053


For customers who access Oracle Fusion applications through Oracle’s public cloud, the document repository of Oracle WebCenter Content Management is used to transfer the bank statement files.


Once the files are loaded, manual bank statement reconciliation involves selecting bank statement lines and system transactions to be reconciled together. During reconciliation, if a system transaction has not been cleared, the reconciliation process clears the transaction first and then reconciles it. Oracle Fusion Cash Management supports manual reconciliation for all matching scenarios – one to one, one to many, many to one, and many to many. You are allowed to reconcile across bank statements from the same bank account.


Automatic Reconciliation – or, auto-reconciliation – is the most common process used for reconciling system transactions with bank statement lines. The auto-reconciliation program uses the reconciliation rule set assigned to the bank account to reconcile bank statement lines and system transactions. Exceptions are presented in the bank statement line so that the appropriate matching system transaction can be selected and reconciled.


Credit Card Transactions Support


Oracle Fusion payments processes authorize requests that are received from source products. An authorization is a real-time process that involves the following actions:


  • Credit cards: The authorization process validates the credit card information and reserves funds through the payment processor and issuing bank.


  • Debit cards: The authorization process validates the debit card information and debits the third-party payer’s bank account immediately. The first party payee may receive the funds at this time. Some payment systems require a separate settlement step to move funds to the first party payee.



In sum, Cloud Financials comes standard with integrations configured for making payments to third parties, capturing funds for customer receivables, bank statement reconciliation, and credit card transaction support. Its easy interface is designed to meet all of your organization’s banking requirements, automatically and seamlessly, giving you more time to focus on business at hand.