Vault Management

Systemfor

Central Banks

Financial Services

Jean-Marc LepainCentral Bank Specialist

Vault Management System

• An Oracle Consulting Product

• A product build around Oracle Inventory

• Stand Alone Application/Integration to

Oracle E-Business Suite

• The VMS can be customized to meet all

Central Banks requirements

Scope of the System

• Physical inventory of coins, notes, ingots, etc.• Non physical inventories• Direct posting to the GL• Reconciliation between stocks and accounting

values• Purchasing and invoicing• Order processing• Interface with the banking system/Cash

Management

Vault Management vs. Inventory• Physical inventory is permanent• Items remain in circulation• Reconciliation of physical stock with GL

values• Necessity to keep track of serial numbers• Limited adjustment• High security features

70 to 80% standard functionalities20 to 30% customization

System Modules

Inventory

Order Processing

Payables

Vault Management System

Optional

System Integration

Banking System(Cash Management System)

GeneralLedger

VaultManagement

System

(Oracle Financials ?)

Events

Cash Issuanceand

Central VaultManagement

System

Branches

CommercialBanks

Banking SystemCash Management

Financials

PreciousMetals

MonetaryExhibits

Securities, etc.

Issuance ofnew notes

Counting/sortingof old notes

Cash Issuance and Vault Management Process Flows

VMS and Oracle Financials

• Full integration using one technology platform

• Implementation Wizard• Use of common components

– Oracle Financial Analyser– Oracle Business Intelligence– Workflow– Alert

Inventory Structure (1)Inventory Structure

Non PhysicalPhysical

Gold / Precious MetalCoinsBank-notesMonetary ExhibitsSecuritiesOther valuables

Notes in circulationDestroyed notesLogical location

Inventory Structure (2)

The inventory structure reflect:

• The organization (Vault, Mint, Printing House, HQ,

Branches, Office, Business Units, etc.)

• Locations (Central Vault, Store-room, Branch Vault)

• Locators (Box, Bin, safe, etc.)

• Items an Item types

• Sub-inventory

Organization

• Printing• Storing• Sorting• Dispatching

• Employees• Set of books• Calendar• Cost Centers• Control process• Movement

parameters

Organization is associated to activities and entities such as:

Location

• Delivery• Sorting• Storage• etc.

• Sub-inventories• accounts• employees

Locations are associated to functions such as:

Sub-Inventory

• by item and item types• by location, physical or logical• by locators• by time period• Cash In-transit Sub-Inventory (for shipping)

Bank-Notes Sub-Inventories

• Denomination / Serial numbers• Non Audited / Waiting audit / Audited• Sorted clean / Sorted dirty• Counted audited clean / Counted audited dirty• Mint notes• Time expired• Mutilated notes• Forged notes and counterfeit

Non Monetary Deposits

• In the name of the Central Bank

• In the name of the State or any Institution

(Ex: IMF)

• In the name of customers

(see scope of the system)

Transaction Set-Up

Transactions are managed by the Transaction Manager in which are defined:

• Transaction types• Transaction profile options (material transactions,

reservation, move transaction [work in process, importation of portable

bar code reader, etc.], resource cost transaction, etc.)

• Transaction reasons• Control options• Default locator and sub-inventory

Transaction Types• A Transaction Type is the combination of

Transaction Source Types (Tags; Receipts; Orders) and a Transaction Action.

Transaction Actions: • Receipt into store• Issue from store• Adjustment

• Sub-inventory transfer• Cost update

Transaction types:Items received from Mint / Printing House, etcItems received from Branches, Commercial Banks, etc.Items sent to Branches, Commercial Banks, etc.

Tags and Tag Numbers

• Tags are associated with any group of items entering the vault such as bulk of notes, boxes of coins, etc.

• Tags numbers can be use to track any combination of items such as:– Serial numbers / lots– Location / locators– Item /Locator, etc.

• Tag reports, report control features

Inter-Organization Shipping Network (1)

The Inter-organization Shipping Network Windows is used to define accounting information and the relationship that exists between shipping and organization such are transporters, CB branches and commercial banks.

Inter-Organization Shipping Network (1)

• Inter-company Relation Profiles• Movement zones• Movement statistic parameters • Inter-Organization Transfer Account• Shipping Sub-Inventory for Cash in Transit• Shipping cost management

Interface with the General Ledger• Intermediary set of books or account can be

defined in the GL• The VMS can use common flexfield with the GL• Transactions can be posted directly in the GL

using Journal Import and Post Journal Process • Reconciliation of physical value with accounting

value • Settlement Accounts of commercial banks are

debited and credited directly• Invoice from the Mint and the Printing House are

automatically processed and debited

Reporting Tools

The Central Bank can choose from a variety of reporting tools such as:

• Application Standard Reports • Oracle Financial Analyzer• Oracle Business Intelligence• Oracle Sale Analyzer

Reporting• Transaction Register • Transaction Historical Summary• Shipping Register• Receipt / Inspection Delivery Reports• Serial Number Transaction Register• Bank Note Reservation Report• Counterfeit Note Report• Adjustment Journal• Statistical Reports for coins/note demand• General Ledger Transfer History

Security Features

• Audit trails• Access control and Access Profiles• Limits for locations, locators, organizations,

transport, employee, etc.• Approval procedures for adjustment• Alert

Auditing

The system can be audited by:• Organizations / Business Units• Set of books• Locations• Employees• Time intervals / Range of dates• Range of serial numbers• Range of Items types and sub-inventories