For Cash Management to work with Oracle Receivables, we need to establish the following in Cash Management:
· Set of Books
· Receipt sources
· Receipt class (optional)
· Receivable activities (optional)
Set of Books must be assigned as system options in Oracle Receivables for each operating unit. We must also select these Sets of Books as the Sets of Books in the Oracle Cash Management System Parameters form.
We must configure bank accounts for banks that will be reconciled using Oracle Cash Management. We must mark the bank accounts with an account use of Internal—but not Customer or Supplier. We must also have the cash clearing, bank charges, and bank errors accounts set up in the GL Accounts alternative region of Bank Accounts. For remittance bank accounts, we need to assign the cash account and remittance account.
We need to define at least one receipt source that will be used for assigning numbers to receipt batches.
If we are planning to create miscellaneous receipts or payments from Oracle Cash Management, we need to set up a receipt class for them. Miscellaneous payments are negative receipts, and are generated in Oracle Receivables, not Oracle Payables. The receipts class setup for this purpose utilizes a manual creation method and is set to not require remittance.
To create miscellaneous receipts or payments from Oracle Cash Management, we must set up a receivable activity.
A receivable activity set up for this purpose requires an account type of either bank or miscellaneous cash. For the miscellaneous cash type, we must either enter an account or select a distribution set.