Getting Started with Oracle ARCS

Account reconciliation is the process of comparing internal financial records against monthly statements from external sources—such as a bank, credit card company, or other financial institution—to make sure they match up.

Bank Reconciliation:

A bank reconciliation is the process of matching the balances in an entity’s accounting records for a cash account to the corresponding information on a bank statement. The goal of this process is to ascertain the differences between the two, and to book changes to the accounting records as appropriate.

Unapplied Receipts:

Unapplied cash/receipts is a remittance received from a customer which cannot be identified or associated with a specific outstanding invoice that is due.

Accounts Receivables:

The reconciliation of accounts receivable is the process of matching the detailed amounts of unpaid customer billings to the accounts receivable total stated in the general ledger. This matching process is important because it proves that the general ledger figure for receivables is justified.

Account Receivable Reconciliation:

The reconciliation of accounts is receivable is the process of matching the detailed amounts of unpaid customer billings to the accounts receivable total stated in the general ledger. It is the matching and validating of balance in the general ledger (GL) to external and internal sources or other independent calculations to ensure that month-ends and year-ends are closed accurately.
If a monthly reconciliation is done, the proper documentation will be available if an audit is performed, and any differences that exist between the two modules can be caught and corrected before the period is closed.

 

Factored Receipts:

Invoice factoring is a financial transaction in which a business sells its accounts receivables (invoices) at a discount to an external financing company, known as a factor or factoring company.
Factoring companies typically advance 70-90 percent of the invoice value upfront. The remaining balance is remitted when the invoice is paid minus a fee.

 

 

Short Term Investment Reconciliation:

A Short-term investment is an investment that will mature to cash within a one-year time period and is considered liquid. When someone invests in short-term stock and bounds, the thinking is that these assets can be cashed in quickly.
Money market accounts are ideal places for corporation and investors to park their cash for a short time while they wait for an opportunity to deploy it.

 

Unidentified receipts:

Unidentified receipts are normally a temporary holding (suspense) account in which funds received but not yet identified as to which account receivable the amount should be properly assigned to are posted.
Unclaimed funds are credited to an ‘unidentified receipts’ account, where they will remain until claimed.

 

Cash Clearing Account Reconciliation:

Clearing accounts are used on a temporary basis to record transactions until there comes a time to post them to a permanent account. Clearing accounts are more simple accounts where you easily enter cash received as a clearing amount until the money is acknowledged, verified, and then deposited in your bank.

 

Remittances Reconciliation:

Remit bills receivable to your remittance bank or other financial institution to initiate the collection process from your customers. Entity remit bills receivable to your bank, and the bank manages the collection process.
On the bill receivable maturity date, the bank collects payment in full from your customers and transfers the funds directly to your bank account, less any fees or other charges.

 

AutoInvoice clearing:

Auto invoice is a powerful tool to import and validate transactions data from other financial system and create invoices, debit memos, credit memos & On-account credits in Oracle receivables.
Auto Invoice Clearing is a suspense account that is created if the revenue amounts do not match the price x quantity amounts.
The difference between both is transferred to this account. Which is justified/validated and transferred to respective accounts on reconciliation.

 

Notes Receivables Reconciliation:

Notes receivable is a balance sheet item, that records the value of promissory notes that a business is owed and should receive payments for. A written promissory note gave the holder, or bearer, the right to receive the amount outlined in the legal agreement. Promissory notes are a written promise to pay cash to another party on or before a specified future date.

Short Term Debts Reconciliation:

Operating debt arising from the primary activities that are required to run a business, such as accounts payable, and is expected to be resolved within 12 months, or within the current operating cycle of its accrual. This is known as Short-Term Debts. Common types of short-term debt include short-term bank loans, wages, lease payments, and income taxes payable.

Intercompany Transactions Matching:

Intercompany reconciliation is when two branches of a parent company reconcile figures as a result of engaging in a transaction. The process often takes place monthly or quarterly and involves various general ledgers of child companies eliminating intercompany transactions.

AP to PO Reconciliation:

Reconciling purchase orders with purchase orders ensure everything is accurate between what the vendor charges you and what you received. Reconciliation is required matching the line items on the PO to the line items on the invoice.

POS to BANK Reconciliation:

POS reconciliation is the accounting task of comparing two sets of records to see if the figures all match up. It helps ensure that your financial activity is properly recorded and the amounts are all accounted for.

PoS to Cash Card Transaction Matching:

POS reconciliation is an accounting process that proves and documents that the account balance is in agreement. It’s a fundamental account process that ensures that the actual money spent matches the money leaving an account at the end of a fiscal period.

Cash Clearing Matching:

A clearing account is an account that business use to move money from one account to another account when it cannot move the money directly. This account normally has a balance of $0.00 because you always take out the same amount that you put in. It may also be called a wash account.

 

Transaction Matching:

Transaction matching is a cloud-based reconciliation platform with pre-built configurations and adherence to industry best practices.

Transaction matching is a module within ARCS that inherits the features that facilitate preparation and review of reconciliations.

For Oracle ARCS training, implementation & support contact at support@bispsolutions.com