Prepared by: Mohammed Salah MahmoudCE-Payroll Integration Cycle

Oracle Payroll integrates with Cash Management so that you can verify that payments that were made by check have been cashed.Cash Management will view the generated payments and compare it against what was loaded from the bank.Cash Management will view the generated payments and compare it against what was loaded from the bank. Note: loading the bank file is a custom solution.Integration with Payroll- Cash Management integrates with Oracle Payroll. Using Cash Management, you can do the following: - Reconcile your payroll account with your bank statement.- Undo the reconciled status of a reconciled payroll payment.Matching Criteria for Oracle Payroll Transactions: The Cash Management Auto Reconciliation program matches Oracle Payroll manual transactions against bank statement lines if the transactions meet the following criteria:- 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. -----------------------------------------------------------------------------------------------------------First Problem:

Problem Statement:1. In 11i, find that the 'Reconciliation Tab' in the Organizational Payment Method form is disabled.2. In R12, find that the 'Cash Management' in the Organizational Payment Method form is disabled.3. Login to HRMS Manager Responsibility.4. Navigate to PayrollPayment MethodsQuery the Payment Method defined for the organization.Find that the 'Cash Management' or 'Reconciliation' tab is disabled.Solution this issue:1. Login to a HRMS Manager Responsibility2. Navigate to Other Definitions --> Application Utility Lookups.3. Query the following lookup types, and add a 'Code' and a 'Meaning' for your legislation The following are the detailed instructions for doing this:1. The following are the lookup types which you need to query and update:1. BANK_ACCOUNT_NAME1. BANK_ACCOUNT_NUMBER1. BANK_BRANCH1. BANK_NAME1. TheLookup Codewould be the legislation code.1. TheMeaningwill contain the segment name that contains the value for the given lookup type.1. For example, for BANK_NAME lookup type, the meaning would be 'SEGMENT1', if segment1 in your Bank Flex field stores the Bank Name.1. If you do not have any segments for any of the lookup types, then you can use the segment of the existing ones. For example, if the Bank Name is the only one segment available for your legislation (uses SEGMENT1), then while defining lookup codes for other lookups (like BANK_BRANCH etc.), you can point to the same SEGMENT1.1. After doing the above setup, navigate to the Payroll --> Payment Methods form --> Query the payment method you have defined.1. Confirm that the 'Cash Management' tab is now enabled.

Setup Steps to Reconcile Payroll Transactions in Cash Management:1). Define the Legal Entity using Legal Entity Manager under Financials.

2). Attach this Legal Entity to the Primary Ledger.

3). The Business Group should have additional classifications of HR Organization.

4). Attach the Primary Ledger to this Operating Unit (Others > Operating Unit Information).

5). Set the 'HR: Business Group' and 'HR: Security Profile' profiles to the Payroll Responsibility for Standard Security.

6). Set the 'MO: Operating Unit' (Business Group organization), 'GL: Ledger Name' (Primary Ledger), CE: Bank Account Security Access' (Payroll) profiles to the Cash Management Responsibility.

7). Define a Bank Account under Cash Management under the ownership of this Legal Entity.

8). Create the Payment Method under Payroll with the same bank details and mapping to the Cash Management bank.

Bank Name: If this already exists, enter the name exactly as it appears in Accounts Payable.Branch: If this already exists, enter the name exactly as it appears in Accounts Payable.Confirm that your source bank account in Oracle Payroll is the same bank account that Oracle Cash Management uses to clear Your payments. This confirmation assures you that you are operating with a single consistent bank account rather than with Duplicate accounts that introduce accounting errors. payable payment method flex field payroll responsibility Bank-name, bank-branch, bank-account

For example: GL-FLEXFIELD-VALUES (BANKS PAYROLL) search AS your setup

Cost Payment: Check this box to specify that you want to cost only un-cleared payments for this payment method. Cost Cleared Payment: Check this box to specify that you want to cost only cleared payments for this payment method. If you check this box, the Cost Payment box is also checked by default. Cost Cleared Voided Payment only: Check this box to specify that you want to cost any voided payments that have also been cleared by Oracle Cash Management. If you check this box, the Cost Payment and Cost Cleared Payment boxes are also checked by default. Exclude External/Manual Payment: Check this box to exclude any external/manual payments from costing. This exclusion is useful if you are using this payment method as a dummy payment method to cancel a previous payment, or if you are making a payment by cash. If you check this box, the Cost Payment box is also checked by default. Transfer to GL: Check this box to specify that costed payments should transfer to General Ledger. If you check this box, the Cost Payment box is also checked by default.

General ledger TAB:

Navigate to the General Ledger tab. Select Ledger to indicate the ledger to use if you intend to reconcile payments using Oracle Cash Management Select the GL Control Account. Select GL Cash Account to indicate which cash account to use for the reconciliation of paymentsThe entry for Description appears automatically by default, depending on what you enter in the GL Cash Account details. Select the Cash Clearing Account. Select the Error Account.When you first specify the GL accounts for a bank account, these then become the default GL accounts for any other payment methods that use the same bank account. The defaults apply for all new payment methods using the bank account. They also apply retrospectively for any existing payment methods that were already using the same account. However, you can override these defaults by entering your preferred GL accounts on the General Ledger tab.At this point, check that your Payroll setup and Cash Management setup are fully integrated.

Costing of Payment process results in Control Account Cash Account Bank Account this account must match with cash account setup in bank account payable.Cash Management TAB:

Confirm that you can reconcile payments in Cash ManagementNavigate to the Cash Management tab. You cannot change the information on this tab, but you can confirm that your GL accounts are correct.To confirm that Oracle Cash Management is operating with the same source bank account that you are using in Oracle Payroll, view the check box. If the box is checked, then Oracle Cash Management holds the bank account for this payment method, and you can reconcile payments knowing that you are using an identical account in Payroll, and in Cash Management.However, if the box is not checked, this indicates that Oracle Cash Management does not hold the details for your Payroll account. This may indicate that duplicate accounts exist and you should exercise caution when you reconcile your payments.

Go to Payroll: Description to assign this payment method to your Payroll

9). Process a Payroll Payment using Cheque Writer or External/Manual Payment

: Run Payroll Process: 1-Payroll Run which assigned to our payment method2-Run Prepayment3-Run Costing4-Run Cost Breakdown5-Run Transfer to SLA6-Run Create Accounting

10). Navigate to Cash Management Responsibility > View: Available Transactions and find the Payroll transaction there to confirm that the Payroll

Search by Bank assigned to Payment Method

After Press Find:

3. Does payroll use the GL date entered on the bank reconciliation? If so how is it used? Is this the date that is used to create accounting of payroll payments? ->Payroll does not use any data from GL end. Link from payroll to GL is one way where costing data from payroll side is moved to GL using transfer to GL process.For Inquiry:you can run request CE Responsibility: Transactions Available to reconciliation ReportCash Management Responsibility Reconciliation Process

. :

Un-reconciledPress Available:

Choose Payroll Check Box: and match or reconcile each line in bank statement with each line in cash managementBy Check number and amount:

Make reconcile:

After Reconcile checks status become Reconciled and so on with all checks

Now Return to Payroll Responsibility and run:1- Costing Request2- Transfer to GL Request

Accounting EntriesWhen "Cost Payment" box ONLY is checked: Page (6)

Costing of Payment process results in

Debit Payroll Control Credit Cash Account

This approach will clear the Payroll Control account that was credited during the Costing process. There are no other accounting lines produced after the payment has been reconciled in Cash Management

"Cost Payment" box AND "Cost Cleared Payment" box is checked: Page (6)

Costing of Payment run BEFORE clearing in Cash Management results in

Debit Payroll Control Credit Cash Clearing

Costing of Payment run AFTER clearing in Cash Management results in

Debit Cash Clearing Credit Cash Account

This approach will clear the Payroll Control account that was credited during the Costing process, and will create the credit to Cash Clearing. After reconciliation and running the Costing of Payments again, the amount of cleared payments will move from Cash Clearing to the Cash Account. .Questions && Answers:Q1: The Payroll Checks are not available in Cash Management for Reconciliation mostly due to integration issues, rarely due to incorrect view definitions.A1:1). Check the Following set up details at Payroll Responsibility.2). Check the Payroll Payment method used to run the Payroll is attached with proper Cash management account. Check the Cash Management tab.3). Check the effective date value at Payroll Payment. The Transaction date should fall between effective start dentate and end date of the Payment method.4). The Business Group assigned to payroll responsibility must be classified as Operating Unit with proper Ledger Details.5). check the business group is assigned to the HR: Security profile and HR: Business Group option for Payroll responsibility

Check the following set up details at Cash Management.1). The Bank Account Must is Payroll Enabled.2). Check the Access Account Page at Bank Accounts Page the Organization must be Business Group As well as Operating Unit.3). the profile CE: Bank Account Security Access must be set to All or Payroll to view Payroll Data in CE.4). The MO: Operating Unit must be set to the same value as the HR: Business Group and that value must represent the Business Group associated with the Payroll.

2. If the payroll payments are accounted both at the time of creation and clearing, how the clearing account is derived and how the entries are passed for journal entries for payroll payments are passed? A2. Payments are costed once they are paid from payroll end. These costing details for payments are passed from payroll for reconciliation. Costing is done against clearing account during this costing process. Once payment is reconciled, costing of payments is run for cleared payments and costing is reversed from clearing account and costed against bank/cleared account.3. Does payroll use the GL date entered on the bank reconciliation? If so how is it used? Is this the date that is used to create accounting of payroll payments? A3 .Payroll does not use any data from GL end. Link from payroll to GL is one way where costing data from payroll side is moved to GL using transfer to GL process.4. Does payroll have periods like AP/AR? A4.Payroll does have periods. Payments are made in payroll for a specific period and so are applicable to accounting. 5. Is there any impact if the GL date is allowed to be modified during the reconciliation of payroll payments?A5. Payroll shouldn't have any impact to changes in GL side as payroll does not use data from GL end for any process. .