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(1). Matching Bank Statement Lines with TransactionsReconciling bank statements in Cash Management has two major steps: matching andclearing.- Matching: Match a bank statement line against a Payables payment, Receivablesreceipt, Cash Management cashflow, Payroll payment, miscellaneous transaction, or open interface transaction using a transaction number (such as the payment ordeposit number), bank account, amount, and currency. You can match a statement line against a Treasury settlement using date and amount. You can also match a statement line against a General Ledger journal entry. Whenever localizations hasreconciliation function enabled in payments, you can match a bank statement against a Payroll EFT payment by using transaction number and date. If matching criteria are not met, the statement line remains unmatched. For manual reconciliation, there are no restrictions for matching statement lines and transactions.- Clearing: Clear the transactions that are matched to the bank statement line,if the transactions have not been cleared previously. Only Payables payments, Receivables receipts, Cash Management cashflows, miscellaneous transactions, and open interface transactions can be cleared. Reconciled Payroll payments and General Ledger journal entries are matched but not cleared. You can report on reconciliation exceptions, variances, and items that have been matched.

1). Matching Criteria for Payables TransactionsThe Cash Management AutoReconciliation program fully matches Payablestransactions against bank statement lines if the transactions meet the followingcriteria:

- For payment batches (such as EFT batches), the Payment Instruction ID matchesthe statement line Transaction Number, and the transaction amount is within thereconciliation tolerance, and- For the detail payment transactions stopped transactions, the matching sequence searches in the following order:1. Payment Number2. Invoice Number and Supplier Bank Account3. Invoice Number and Supplier NameAlso, the transaction amount is within the reconciliation tolerance.

Note: If the bank statement does not provide a check number for a payment, thenmatching to the invoice number and supplier bank account number is particularlyuseful.

- For stopped transactions, the payment must first be stopped or voided in Payables.

2). Matching Criteria for Receivables TransactionsThe Cash Management AutoReconciliation program fully matches Receivablestransactions against bank statement lines if the transactions meet the followingcriteria:- For remittance batches (such as Direct Debit batches), the Remittance Batch Deposit Number or Receipt Batch Name matches the statement line Transaction Numberand the transaction amount is within the reconciliation tolerance.- For detail remittance transactions, NSF (Non-Sufficient Funds), and Rejected transactions, the matching sequence searches in the following order:1. Receipt Number

2. Invoice Number and Customer Bank Account Number3. Invoice Number and Customer NameNote: Also, the transaction amount is within the reconciliation tolerance.If the bank statement does not provide a receipt number for a receipt, then matching to the invoice number and customer bank account number is particularly useful.- For NSF (Non-Sufficient Funds) or Rejected transactions the receipt must firstbe reversed in Receivables.

3). Matching Criteria for Oracle Payroll Transactions

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The Cash Management AutoReconciliation program matches Oracle Payroll manualtransactions against bank statement lines if the transactions meet the followingcriteria:- For manual Payroll payments, the payment number matches the statement line transactions number and the payment amount, and the payment amount matches the statement line amount.- For Oracle Payroll EFT transactions, the matching sequence searches in the following order:1. Transaction Number and Transaction Date2. Transaction Number, Batch Amount, and Transaction Date- Reconciliation tolerances do not apply to Payroll payments.

4). Matching Criteria for Miscellaneous TransactionsThe Cash Management AutoReconciliation program matches miscellaneous transactions if the transactions meet the following criteria:- If the transaction type matches to regular miscellaneous transactions:- The transaction amount is within the reconciliation tolerance.- The Receipt Number matches the statement line Transaction Number.- If the transaction type matches to correction statement lines:- For reversal corrections, the statement line has the same transaction number,same amount, and opposite transaction type (for example, Miscellaneous Receipt and Miscellaneous Payment), or- For adjustment corrections, the statement line has the same transaction number, and has a transaction type of payment, receipt, miscellaneous payment, or misc

ellaneous receipt, and the net amount is within the reconciliation tolerance.

5). Matching Criteria for Open Interface TransactionsThe Cash Management AutoReconciliation program matches open interfacetransactions if the transactions meet one of the following criteria:- The Transaction Number matches the statement line Transaction Number, and thetransaction amount is within the reconciliation tolerance.- The transaction date and amount are the same as the bank statement line date and amount. If you use the Reconciliation Open Interface to reconcile Treasury settlements, then you must choose date and amount as the matching criteria.

6). Matching Criteria for General Ledger JournalsThe Cash Management AutoReconciliation program matches General Ledger journal tr

ansactions if the transactions meet the following criteria:- The journal line is posted.- The journal line Accounting Flexfield matches the bank account's Cash Accounting Flexfield.- The journal line Description matches the statement line Transaction Number.

7). Matching Criteria for Cash Management CashflowsThe Cash Management AutoReconciliation program fully matches Cash Management cashflow transactions in the following sequence:1. Statement Line ID (for transfers created through the sweep transactions program ortransactions created from bank statement lines)2. Bank Reference Number, Date, and Amount

3. Agent Bank Account, Date, and AmountNote: The transaction amount must be within the reconciliation tolerance.

(2). Reconciliation Controls1. Optionally, you can select Payables Matching Order 1, Payables Matching Order2, Float Handling, and Receivables Matching Order.

Foreign Currency Bank1. Optionally, you can select Exchange Rate Type and Exchange Rate Date.

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Open Interface Controls1. Optionally, you can select Use Reconciliation Open Interfaces and Open Interface

Matching Criteria.2. Optionally, you can enter Float Status and Clear Status.

Manual Reconciliation Tolerances1. Optionally, you can enter Tolerance Amount and Tolerance Percentage.

Auto Reconciliation TolerancesPayments1. Optionally, you can enter Tolerance Amount, Tolerance Percentage, Foreign Tolerance Differences, and Tolerance Differences.Receipts1. Optionally, you can enter Tolerance Amount, Tolerance Percentage, and ForeignTolerance Differences.Cashflows1. Optionally, you can enter Tolerance Amount, Tolerance Percentage, Foreign Tolerance Differences, and Tolerance Differences.Open Interface1. Optionally, you can enter Tolerance Amount and Tolerance Percentage, ForeignTolerance Differences, and Tolerance Differences.2. Click Save and Next.