Cash Management & Bank Reconciliation Design

Objective

Build a cash and bank reconciliation design that gives daily cash clarity and a controlled month-end bank-to-book close.

Context

Finance teams often lose time to unmatched statements, unclear bank account ownership, and cash positions that do not agree to GL.

Scope

Bank account model, statement intake, auto-match vs manual match, outstanding item aging, and cash position reporting. Out of scope: treasury deal management.

Approach

Map legal entities to bank accounts → define GL cash accounts → design statement import cadence → set matching tolerance → build exception queues → publish daily cash view.

1. 01
   Account & ownership mapEntity, bank, GL account, and owner.
2. 02
   Statement designFormats, cadence, and import validation.
3. 03
   Matching rulesAuto vs manual, tolerances, references.
4. 04
   Exception workflowAging, escalation, and clearance.
5. 05
   Cash reportingDaily position + month-end pack.

Key design decisions

One GL cash account per bank account where possible

Simplifies reconciliation ownership.

Match on reference + amount first

Reduce false positives from amount-only matching.

Separate operational cash view from period lock

Daily ops can move while close remains controlled.

Walkthrough

Import a sample statement → auto-match receipts/payments → age unmatched items → clear a manual match → lock period bank rec → extract cash by entity.

Controls

Every bank account has an owner; unmatched items older than SLA escalate; no period close with material unmatched balance without sign-off.

Oracle modules in focus

Deliverables

Outcomes

Demonstrates practical Cash Management design that connects operations, GL, and controller reporting.