ORACLE DATA SHEET

ORACLE FINANCIALS ACCOUNTING HUB

MODERNIZATION SERVICE

ACHIEVE THE HIGHEST FINANCIAL

TRANSPARENCY AND REDUCTION IN

FINANCIAL SYSTEM ARCHITECTURE

COMPLEXITY

BUSINESS BENEFITS

• Create foundation framework for IFRS

changes

• Accelerate deployment of updated

accounting rules to meet new

requirements

• Accelerate the monthly close

• Detailed financial transparency

• Robust and flexible accounting engine

• Eliminate changes to the chart of

accounts

• Improve financial accuracy

• Leverage E-Business Suite R12 or

Fusion capabilities

Faced with the challenges of aging finance product system platforms, constant

accounting rule changes, continued increases in regulation and associated

financial disclosures, and support additional granularity of data for risk

computations, Financial Services companies need to modernize their finance

and accounting systems. These challenges in conjunction with reduced margins

and the need to drive lower costs make it difficult for companies to operate and

compete effectively in today’s market.

Oracle Financials Accounting Hub Modernization Service delivers a foundation

solution to enable financial services organization to keep up with regulatory

demands, support cost pressures, and satisfy the need for growth.

IFRS and Regulatory Reporting Requirements

The major changes related to supporting regulatory and IFRS accounting changes require:

• Changing the accounting rules for different instruments.

• Providing additional details for disclosure at contract level which is not available in the

General Ledger platform.

• Supporting dual accounting standards until convergence to IFRS occurs.

The table below shows how these changes are currently undertaken by companies today. All

of the solutions or workarounds listed below require companies to undertake costly projects to

modernize old systems, increase the level of risk in controls, increase reconciliation overheads

and still not be able to provide a framework that is flexible to meet future demands of the ever

changing regulation space.

Figure 1 – Common approaches and issues related to changing IFRS and regulatory

requirements

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KEY FEATURES

Ledger and Subledger Configuration

• Accounting Events Setup

• Ledger Setup (GAAP and Statutory)

• Pass-through and Event type Event

Model

• Journal Line Setups

• Chart of Accounts Segment Derivation

Setup

• Foreign Transactions Using FX

Currency Rate

Event Processing and Reporting

• Predefined Double-sided Data Model

• Adapt one-sided Product Event-based

Data Model to Event-based Use Case

• Transaction Flat File and Spreadsheet

Load with Control Validations

• Processing Steps

• Draft and Final Accounting Processing

• Error Processing – Operations Error

Report

• Show Balance Inquiry

• Show Accounting Inquiry

• Batch Journal Reversal – Automatically

Reverse entire Input Batch

Deployment

• Integrate Pass-through Data and Event

Accounting Transactions

• Desktop Integrator (DI) Interface for

Manual Adjustments

• Integrate Chart of Accounts Segment

Values

• Integrate Foreign Exchange Rates

• Fixed Timeline, Activities, and Staff Plan

Oracle Consulting’s Modernization Solution

Oracle Consulting provides a tested and highly proven scalable and flexible accounting rules

framework solution to implement a foundation to address the challenges related to IFRS and

regulatory reporting requirements. Our solution provides a basic framework for a pre-defined

scope that allows companies to create a strong solution framework which can then be

extended for future requirements. Our solution encompasses best practices that have been

developed by working with the most complex financial services requirements.

Figure 2: Comprehensive Accounting Sub ledger with Full Lifecycle of Accounting

This solution can be deployed into production in about 16 weeks. Oracle Consulting’s pre-

built templates and agile project execution enable the acceleration for the solution deployment

at reduced cost and risk.

Key highlights and business capabilities:

• Complete deployment of the solution in about 16 weeks at a fixed cost

• Integration with two Financials products/instruments and up to 15 source systems

• Support for full life cycle accounting for two product/instruments

• Generate detailed accounting at contract level

• Generate dual accounting representations of your choice (e.g. LOCAL GAAP/Corp

GAAP/IFRS)

• Integrate summarized journals with a ledger of your choice

• Support for FX conversions at contract level

• Support for entering adjustments at the contract level using user friendly spreadsheet

interface

• Support for event based accounting and pass thru accounting (pre-accounted source system

integration)

Service Benefits

Oracle Financials Accounting Hub Modernization Service provides the following key

benefits:

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WHY ORACLE CONSULTING

• Leading Expertise: Oracle's own

experts providing thought leadership for

every Oracle solution.

• Broad Coverage: “End-to-end” lifecycle

services across the entire Oracle

product footprint.

• Global Scale: 13,000 Oracle experts in

145 countries, serving over 20 million

users.

• Unified Methodology: Based on

industry standards, high quality results

across complex projects.

• Flexible Delivery: Onsite, offsite, and

offshore, along with innovative

solutions such as Expert Services and

Architecture Services.

RELATED PRODUCTS

Oracle Consulting offers similar Financial

Management Services for the following

Business Intelligence Modules:

• Essbase for Financial Reporting

• FCM Close Management Module

• Financial Analytics

• Oracle Financial Management

Analytics

• Procurement and Spend Analytics

• Oracle Policy Automation

• OBIEE for Reporting

• Create foundation framework for IFRS changes – IFRS accounting changes require

companies to change accounting from GAAP to IFRS. The most accurate way of making

these changes is to make the accounting fixes at the contract level to drive the highest

accuracy and transparency which this solution enables.

• Accelerate deployment of updated accounting rules – changes in accounting regulations

or corporate structures are quickly accommodated with effective dating of rules in a

configurable business user facing solution that reduces the lead time needed for IT changes.

• Accelerate the monthly close – with sophisticated error and exception handling, users can

quickly isolate, research, and resolve exceptions with business-oriented exception

management and online inquiries eliminating the need for adjustments and corrections.

Solution also enables keeping the ledger thin and facilitates a faster close due to lower

General Ledger volumes needed for processing.

• Detailed financial transparency – the ability to drill through summary financials of parent

systems down to the acquired system provides detailed transparency to the underlying

financial numbers and trends needed for regulatory reporting.

• Robust and flexible accounting engine - allows organizations to change accounting

treatments in the future independently of the source systems, which offers a foundation

capability that enables the organization to comply with changes in evolving area of

accounting treatments around IFRS and complex financial instruments (HTM vs. Trading).

• Create a thick Chart of Accounts without re-implementing General Ledger – to provide

access to contract level details for different instruments and enable management reporting

without having to burden the Chart of Accounts to store additional non required sparse

dimensions.

• Improve financial accuracy – by capturing financial details at the contract or instrument

level and seamlessly communicating changes to source systems keeps them updated,

eliminates the need for top side adjustments, and enables a seamless financial close.

• Leverage E-Business Suite R12 or Fusion capabilities – our solution is based on the sub-

ledger accounting capability which is available as a standard functionality in Oracle E-

Business Suite R12 or in Fusion thus enabling transition strategy for organizations

considering embarking on a Fusion roadmap.

• Lower implementation cost as compared to traditional implementation approaches – the

rapid start approach is designed to reduce time and effort needed to deploy your Financial

Accounting Hub solution. This rapid project approach reduces implementation costs and can

dramatically improve your ROI by lowering ongoing business cost in areas of accounting

research and financial close activities

• Proven methodology for rapid application implementation – Oracle Consulting has strong

skills and long experience in integrating ERP and EPM solutions. We have combined that

experience with our knowledge of the Oracle OUM solution into this program.

• Accelerate time to value – rapidly integrate new systems into FAH by leveraging the rules

engine to separately define and reuse setups for each component of a journal entry such as

the journal lines, descriptions, and summarization criteria.

• Reduced implementation risk – this service brings structure to not only the approach but

to the underlying solution itself. This structure allows us to deploy quickly and with better

accuracy.

Scope of Offering

• Product 1 Event-Based (one sided entries) – Load accounting events into the staging area

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from a flat file. Run control checks and data validations. Transform and post validated

transactions into FAH Insurance transaction object.

• Configuration of up to 15 accounting event types

• Configuration of up to five product attributes for use in Accounting rules

• Single Desktop Integrator template enhanced Spreadsheet for Manual adjustments

• Pass-through and Manual Adjustments - Load pre-accounted Journals (double sided

entries). Run control checks and data validations. Post validated transactions into FAH

Pass-through transaction object

• Create the Application Program Interface (API) program to invoke event creation. This

program will process data posted in the transaction object

• 2 Ledgers – GAAP and Statutory

• Integrate Foreign Exchange Rates

• Integrate Chart of Accounts segment values

• Share product-based Event and Data modeling best practices

• Provide solution configuration documentation

• Provide future process flow documentation

• Provide step by step FAH system execution documentation

• Agile Project Plan using Oracle’s proven OUM Methodology

How We Are Different

The Oracle Consulting team is focused exclusively on Oracle Technologies, and we have the

experts that others turn to for leading practices in Oracle hardware and software

implementations. We know how to best optimize your investment in Oracle products and can

provide your business with tightly integrated, comprehensive, superior services throughout

your ownership experience.

Getting Started

Leverage Oracle’s methods, tools, and extensive experience with customer implementations

across diverse industries and geographies. Tight integration across Consulting, Development,

Support, Education, and Global Delivery puts the entire Oracle team behind your success. To

learn more, contact your local Oracle Consulting representative, or visit

www.oracle.com/consulting.

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