introduction - fusion accounting hub fundamentals

Oracle IDP© 2004 Capgemini - All rights reservedXxx/yymmdd - Title of the presentation, Author / 1

Introduction to Oracle Fusion Accounting Hub Fundamentals

Oracle IDP

Ranjit Lamba, Mangesh Dixit and Sunil Bharwani

Sep 2013


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


Oracle Fusion Accounting Hub Integrations


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


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


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


Accounting Integration Process


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


Reporting Platform


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


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


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


Reporting and Analysis To Fit Your Needs


Accounting Transformations Overview


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


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


Accounting Event Model example


Accounting Transformations Flowchart


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


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


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


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


Subledger Journal Entry Rule Set Example


How the Different Types of Rules Fit Together


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


Create and Process Subledger Entries


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


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


Integration with E-Business Suite


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


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


Integration with PeopleSoft


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



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



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



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


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



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


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



Consolidations


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


Reporting Only Consolidations


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


Balance Transfer Consolidations


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


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


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


THANK YOU

introduction - fusion accounting hub fundamentals

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