The bank statement reconciliation involves reconciling the statement lines with the source transactions. The bank statement line
amount can differ from the source transaction amount due to the following reasons:
 Charges: The transaction processing involves charges. The charges can be processing fee, transaction fee, commission,
discounting, or collection charges. These charges are part of the statement line amount.
 Currency exchange differences: This occurs for foreign currency transactions where the conversion rate is different from
the date the transaction was created and cleared in bank, due to fluctuations in the conversion rate.
During the reconciliation, Tolerance rules are defined to identify the amount difference between statement line and system
transactions. Any amount difference within the amount tolerance is automatically created as an external transaction, with the
origin: Reconciliation Difference.
From 18C onwards, when tolerance amounts are applied, the reconciliation differences generated during 1-1 matching of Payment/
Receipt reconciliation, can now be created for specific foreign exchange gain/loss and bank charges accounts.
The foreign Exchange Gain, Foreign Exchange Loss, and Bank Charges accounts are defined at Bank Account - Business Unit access
Business Rules
1. The foreign exchange gain/loss or bank charge accounts will be used only for 1-1 matching of payments and receipts.
For foreign exchange gain/loss - If the foreign exchange gain/loss account is setup for the payment/receipt business
unit, then this account will be defaulted. Else, the reconciliation difference account will be used to create the external
transaction.
For Bank charges/Forex charges - If the bank charges account is setup for the payment/receipt business unit, then this
account will be defaulted, else the reconciliation difference account will be used to create the external transaction.
2. For all other matching scenarios (1-M, M-1, M-M) and reconciliation of other source transactions (payroll/external transactions),
the reconciliation difference account will be used to create the external transaction:
Domestic currency bank account - Multi-currency disabled
For domestic bank accounts, non-multicurrency account (transaction currency = bank account currency = ledger currency): -
Any amount difference (under the tolerance rule) between the bank statement line amount and the transaction amount,
will be considered as bank charges.
Domestic currency bank account - Multi-currency enabled
For foreign currency transactions, the exchange difference calculation will use the Original Amount and exchange rate provided on
the bank statement line (Foreign Currency Information):
The original currency, amount, and exchange rate will generate the Cleared amount, and it will be compared with the bank
statement line amount, and transaction amount, resulting in:
 Foreign Bank Charges - The difference between the cleared amount in base currency (original currency amount *
exchange rate) and the bank statement line amount will be treated as bank charges. An external transaction will be
created using the bank charges account.
 Exchange difference - The difference between the cleared amount in base currency (original currency amount *
exchange rate) and the payment/receipt amount will be treated as foreign exchange difference. An external
transaction will be created using the foreign exchange gain/loss account.
see below the necessary roles which need to be assigned to an user in order to have successful bank account transfer transactions and a successful integration between payments and cash management:
Job Role / Duty Role
Cash Manager (Application role)
ORA_CE_CASH_MANAGER_JOB
Cash Positioning and Forecasting Management
ORA_CE_CASH_POSITION_AND_FORECAST_MANAGEMENT_DUTY
IBY Role
Payments Disbursement Administration
(ORA_IBY_PAYMENTS_DISBURSEMENT_ADMINISTRATION_DUTY)
Disbursement Data Management
(ORA_IBY_DISBURSEMENT_DATA_MANAGEMENT_DUTY)
Disbursement Process Management
(ORA_IBY_DISBURSEMENT_PROCESS_MANAGEMENT_DUTY)