Oracle Exam 1z0-1107-2 Topic 1 Question 4 Discussion

The two processes that help organizations in estimating bank account balances daily and over a period of time are cash positioning and cash forecasting. Cash positioning is a process that involves calculating the current cash position of each bank account by adding or subtracting the cleared and uncleared transactions from the opening balance. Cash forecasting is a process that involves projecting the future cash position of each bank account by adding or subtracting the expected inflows and outflows from the current balance. Reconciliation and bank account transfer are not processes that help organizations in estimating bank account balances daily and over a period of time, but rather processes that have different purposes and functionalities. Reconciliation is a process that involves matching the transactions recorded in the bank statement with the transactions recorded in the general ledger. Bank account transfer is a process that involves transferring funds between bank accounts within or across legal entities. Reference: Oracle Cash Management Cloud User Guide, Oracle Cash Management Cloud User Guide, Oracle Cash Management Cloud User Guide, Oracle Cash Management Cloud User Guide