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Introduction to Oracle Fusion Accounting Hub Fundamentals
Oracle IDP
Ranjit Lamba, Mangesh Dixit and Sunil Bharwani
Sep 2013
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Identify the key concepts of Oracle Fusion Accounting Hub offering
Configure accounting transformations
Explain applications coexistence configuration
Specify ledger options
Describe consolidations using Oracle Hyperion Financial Management integration
Explain budgeting using Oracle Hyperion Planning integration
Oracle Fusion Accounting Hub (FAH) Fundamentals
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Oracle Fusion Accounting Hub Integrations
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Oracle Fusion Accounting Hub provides the following set of accounting tools: Oracle Fusion General Ledger
Provides journal entry import and creation, real time balances, accounting controls and close functionality
Contains intercompany balancing, an allocation manager for the definition of allocation rules using complex formulas, automatic generation of allocation journals, enhanced journal approval and year end process management
Oracle Fusion Financial Reporting Processes and deploys complete financial reports across the enterprise in multiple
formats
Provides embedded balances cube functionality with multi dimensional, online analytical processing (OLAP) of financial information
Slices and dices data across dimensions
Oracle Fusion Accounting Transformations Provides flexible accounting transformation of transactions
Creates journal entries and transfers reference information from diverse, nonOracle, industry applications into accurate, detailed, auditable accounting entries in Oracle Fusion General Ledger
Oracle Fusion Accounting Hub Components
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Oracle Hyperion Data Relationship Management Integration Provides the opportunity to centralize and perform charts of accounts and hierarchies
maintenance
Establishes corporate wide accounting structures, for Oracle and nonOracle ledgers and automatically updates chart of accounts and hierarchies across multiple ledgers
Requires licensing to use Oracle Hyperion Data Relationship Management
Integration with Oracle E-Business Suite and PeopleSoft General Ledgers Provides the opportunity to leverage the Oracle Fusion Accounting Hub with minimal
implementation effort
Enables continued use of E-Business suite or PeopleSoft General Ledgers and applications for transaction processing while sending accounting results to the Oracle Fusion Accounting Hub for corporate financial reporting and analysis
Slices and dices data across dimensions
Oracle Hyperion Planning and Oracle Hyperion Financial Management integration Provides the opportunity to perform planning, budgeting and consolidation functions in
an integrated accounting environment
Requires licensing of each product
Oracle Fusion Accounting Hub Components
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Scenario One – Accounting Integration: Perform accounting transformations to account for transactions from nonOracle
external applications in Oracle FAH
Scenario Two- Reporting Platform: Transfer Oracle E-Business Suite or PeopleSoft General Ledger balances to the
Oracle FAH to take advantage of the Oracle FAH multi-dimensional financial reporting tools and real-time analytics
Scenario Three- Both Accounting Integration and Reporting Platform: Perform accounting transformations to account for transactions from nonOracle
external applications in Oracle FAH
Transfer Oracle E-Business Suite or PeopleSoft General Ledger balances to the Oracle FAH to take advantage of the Oracle FAH multi-dimensional financial reporting tools and real-time analytics
Oracle Fusion Accounting Hub Solution: Scenarios
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Accounting Integration Process
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Step One – Capture Accounting Events: Configurable to satisfy all transaction capture and accounting representation
requirements
Register tables and views for multiple data sources
Scalable to accommodate high data volumes
Step Two- Create Accounting Rules: Satisfy diverse accounting and reporting requirements with configurable
accounting rules
Manage and enforce accounting policies through centralized controls and validations
Step Three- Transfer and Post: Generate, transfer and post streamlined accounting entries
Accounting entries are detailed, auditable and reconcilable
Step Four – Audit and analyze: Improve efficiency with easy integration
Drill from the Oracle FAH balances to journal details in the analysis platform
Accounting Integration Process
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Reporting Platform
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The FAH reporting features functionality includes:
Running live reports and books in various formats
Creating embedded charts and graphs
Refreshing report data using runtime parameters
Expanding or drilling down from any parent value to the next child value
Expanding or drilling down from any child value to detail balances, journal lines and subledger transactions
Building multi-dimensional reports, with multiple hierarchies, using a client based tool, Oracle Hyperion Financial Reporting Studio
Distributing reports automatically across the organization using e-mail or other distribution mechanisms
Storing reports in a repository folder structure, using various formats, including PDF, HTML and spreadsheets
Reporting Features
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The FAH analysis features functionality includes:
Account Monitor: Provides users with a tabulation of self-selected accounts and balances, with
self-defined deviances from standards for those balances
Provides efficient monitoring and tracking of key account balances in real time and is continually updated, at every level of the dimension and hierarchy
Account Inspector: Perform ad hoc multidimensional pivot table analysis
Review charts based on Account Monitor data
Use drill down from the Account Monitor from any parent value to the next parent or child value
Perform drill down from any child value to detail balances, journal lines and subledger transactions
Analysis Features
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The Fusion GL spreadsheet functionality includes Smart View which: Provides Excel interfaces designed specifically for Oracle Hyperion Enterprise
Performance Management (EPM), Oracle Business Intelligence Enterprise Edition (OBIEE) and Fusion GL
Views, imports, edits, distributes and shares data. It is a comprehensive tool for accessing and integrating EPM, BI and GL content
Includes features to create and refresh spreadsheets to access real time account balances and activity
Uses the Excel environment to interactively investigate the data contained in the sources
Spreadsheet Features
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Reporting and Analysis To Fit Your Needs
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Accounting Transformations Overview
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Oracle FAH creates detailed, auditable journal entries for source system transactions
The subledger entries are summarized and transferred to the Oracle Fusion GL
The GL journals are posted and update the GL balances
The GL balances are then used by the Financial Reporting Center for reporting and analysis
Accounting Transformations Overview
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Event Model: Definition of the subledger transaction types and lifecycle Event Class: classifies transaction types for accounting rule purposes
Event Type: For each transaction type, defines possible actions with accounting significance
Process Category: consists of specific event classes and the event types within those classes
Transaction object: Data model containing transaction information to be used in accounting
Source: Any attribute of a transaction that can be used in defining accounting rules and generating an entry
Accounting Transformations Concepts
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Accounting Event Model example
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Accounting Transformations Flowchart
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When using the accounting transformation implementation process: Start with an analysis of your current systems
Determine which source systems have transactions or activities that need to be accounted and reported via Oracle Fusion Accounting Hub
Register the source system transactions and activities which have financial impact in the Oracle Fusion Accounting Hub to make them eligible for accounting
Create accounting rules that determine how each of the accounting events should be accounted
Group these rules together and assign them to ledgers to create a complete definition of the accounting treatment for the transactions and activities for each source system
Accounting Transformations Flow
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Subledger Accounting Rules Overview
Accounting methods group subledger journal entry rule sets together to define a consistent accounting treatment across all accounting event classes and accounting event types for all source systems
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A subledger journal entry rule set is a collection of rules that will generate a complete journal entry for an accounting event
Select the option to define the subledger journal entry rule set for a particular accounting event class or accounting event type
The following are the components of a subledger journal entry rule set: Description rules – for static information stored on journal entries and entry lines
Journal line rules – to determine how each debit and credit entry will be created
Account rules – to determine the accounts for subledger journal entry lines
Supporting references – to store additional source information about a subledger journal entry either at the header or line level
Subledger Journal Entry Rule Sets
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The journal entry rule set determines: The debit and credit lines to be generated
Which accounts to use
How to determine the accounting date
The descriptions to stamp on the entries
The supporting references to capture on the entries
Journal line rules and corresponding account rules are mandatory to be able to generate an entry
Subledger Journal Entry Rule Sets
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Subledger Journal Entry Rule Set Example
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Subledger Journal Entry Rule Set Example
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How the Different Types of Rules Fit Together
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Define accounting methods in the following sequence Define accounting method
Assign a subledger journal entry rule set to each class and/or type for each source system
Select an accounting method for each ledger
Define Accounting Methods
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Create and Process Subledger Entries
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On a periodic basis, transaction and reference information from source systems is transferred to Oracle FAH
The Create Accounting Process identifies all accounting events eligible to be processed
For each of these events, the transaction objects provide the Create Accounting process with the transaction objects data (source information)
When the Create Accounting process is run, accounting transformation rules, as assigned to the subledger accounting method for the ledger, and transaction objects data are applied to the transaction object data to create subledger journal entries
These entries are summarized, transferred and posted to Oracle Fusion GL
Create and Process Subledger Entries
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Integration with E-Business Suite overview:
Applications coexistence between Oracle FAH and Oracle E-Business Suite has the following functionality: Use E-Business General Ledger for day-to-day transaction processing without
disruption for the Oracle subledgers (Oracle Payables and Receivables) being used
Use Oracle FAH, with embedded Essbase multi-dimensional analytics for corporate reporting
Allows you to use both simultaneously
Minimizes implementation cost and effort while providing the additional benefits of Oracle FAH. There is no need to migrate from the E-Business applications
Use E-Business General Ledger to store accounting from the Oracle E-Business subledgers without changing accounting treatment
Transfer balances from the E-Business General Ledger to Oracle FAH
Applications Coexistence Configuration
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Integration with E-Business Suite
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Integration with E-Business Suite
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Complete the GoldenGate installation
Register E-Business instances in the Fusion FAH
Configure the coexistence mappings
The ongoing business processes include Submitting the balance transfer program to move the E-Business balances to the
Fusion FAH
Drilling from the Oracle FAH to the E-Business General Ledger as needed to audit or review details
Relevant Setup Tasks
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Integration with PeopleSoft overview:
Applications coexistence between Oracle FAH and PeopleSoft 9.1 has the following functionality: Continue to use PeopleSoft General Ledger for day-to-day transaction
processing without disruption
Use Oracle FAH, with embedded Essbase multi-dimensional analytics for corporate reporting
Allows you to use both simultaneously
Minimizes implementation cost and effort while providing the additional benefits of Oracle FAH. There is no need to migrate from either the PeopleSoft General Ledger or from the PeopleSoft subledgers such as Payables and Receivables
Continue to use PeopleSoft General Ledger to store accounting from the PeopleSoft subledgers without changing accounting treatment
Transfer balances from the E-Business General Ledger to Oracle FAH
Applications Coexistence Configuration
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Integration with PeopleSoft
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Prerequisites:
PeopleSoft 9.1 GL is installed and PeopleSoft Financials Resolution ID 872183 or FMS Financials Bundle #16 is applied
Oracle FAH 1.0.1 is installed and all initial setup tasks are completed
Oracle Data Integrator (ODI) must be installed and configured
Relevant Setup Tasks
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Map data Send Chart of Accounts values from PeopleSoft GL to Oracle FAH (one-time
transfer). Ongoing maintenance must be done in both applications
Using PeopleSoft pages, map control data such as PeopleSoft Setid and Chartfield combinations to Oracle Fusion value set values and map corresponding ledger, calendar and accounting periods and chart of accounts segment between the PeopleSoft and Oracle FAH
Application Engine Program Transform the PeopleSoft initial ledger balances and journals
Access the mapped control data
Populate the rows in a staging table that are transferred to Oracle FAH
Oracle Data Integrator Performs the data transfer from PeopleSoft to Oracle FAH
Submits the PeopleSoft Import and Transform program in the Oracle Fusion database
Relevant Setup Tasks
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PeopleSoft Import and Transform Program within the Oracle FAH database Validates the rows in the staging table
Converts the ChartField values to Fusion chart of account values if the data passes validation
Submits the Fusion Journal Import program to create the corresponding Fusion journals
Produces an execution report describing the errors if the data fails validation. In such a case, the Import and Transform program does not launch the Fusion Journal Import program
Relevant Setup Tasks
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Chart of Accounts Synchronization with DRM
Oracle Hyperion Data Relationship Management (DRM) is used to synchronize chart of accounts values and hierarchies across multiple EBS and Fusion instances It is useful if performing a coexistence implementation where EBS GL serves as
the daily GL and FAH is used for enhanced financial reporting with embedded Essbase functionality
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Managing Suspense Accounts Use suspense accounts to post balancing amounts for out of balance journal
entries. The out of balance amount for the journal entry is automatically placed in the suspense account enabling you to post the transaction
Managing Statistical Units of Measure Associate statistical amounts with monetary amounts by using statistical units of
measure. This enables you to enter both monetary and statistical amounts in a single journal entry line
Sequencing Options Sequencing simplifies the cumbersome task of tracing your journal entries for
reporting and auditing purposes Use Document Sequences to assign unique numbers to your journal entries when
they get created
Use Accounting Sequences to assign gapless, unique numbers to your journal entries when posted
Use Reporting Sequences to assign gapless, unique numbers to your journal entries upon period close
General Ledger Options
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General Ledger Options
Journal sources Indicate where your journal entries originate
Journal categories Help you differentiate journal entries by purpose or type, such as accrual,
payments or receipts
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Managing Journal Approval Rules The Journal Approval Process obtains the necessary management approvals for
manual journal batches
Journal approval in Fusion uses Oracle Fusion Approvals Management (AMX) to merge the functionality of Oracle Approvals Management (AME) and PeopleSoft Approvals (AWE)
Oracle Business Process Execution Language (BPEL) has replaced Oracle Workflow.
Journal approval process: Validates the journal batch
Determines if approval is required
Submits the batch to approvers (if required)
Notifies appropriate individuals of the approval results
General Ledger Options
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Consolidations
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Use the Reporting Only Consolidation Method and the reporting solutions with the following scenarios All subsidiaries and your corporate ledger share the same calendar
One of your subsidiaries has a local chart of accounts and a local currency. The subsidiary uses a secondary ledger to record balances in the corporate chart of accounts and the corporate currency
One subsidiary has a local currency and uses reporting currency functionality to record balances in the corporate currency
Reporting Only Consolidation Method
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Reporting Only Consolidations
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If multiple subsidiaries and the corporate ledger do not share the same chart of accounts and calendar, use the Balance Transfer Consolidation method Translate balances to the corporate currency for ledgers not in the corporate
currency
Create a chart of accounts mapping to map subsidiaries account values to the corporate chart of accounts
Transfer balances from the subsidiaries to the corporate consolidation ledger using the Balance Transfer process
Create eliminating entries using journal entries or the Allocation Manager in the corporate consolidation ledger
Generate a report on the consolidated balances net of eliminations in the corporate consolidation ledger
Balance Transfer Consolidation Method
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Balance Transfer Consolidations
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Budgeting
Budget preparation can be done with: Oracle Hyperion Planning
Third party budgeting system
Spreadsheet entry
Oracle FAH provides budget reporting capabilities through its reporting tools
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Budgeting within Fusion Accounting Hub
If you use a third party budgeting system or do not use a budgeting system: Load budgets into the balances cube directly using Hyperion Smart View
Perform budget monitoring in the General Accounting Dashboard
Budget variance reporting can be done using the Oracle Fusion Accounting Hub
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Integration with Hyperion Planning
If you use Hyperion Planning for your budgeting system: Load your budgets from Planning to Oracle FAH using Enterprise Resource
Planning (ERP) Integrator (ERPI)
Perform budget monitoring in the General Accounting Dashboard
Hyperion Planning should be used for complex budgeting requirements
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