Oregon Health & Science University’s Implementation of Oracle Financials Accounting Hub

Colleen Roden – OHSU SR Oracle Business AnalystLeslie Marti – Impac SR Principal ConsultantJanette Lockhart – Impac Technical Manager

About OHSU

Schools of Medicine, Dentistry, Nursing and Science & Engineering

OHSU Hospital and Doernbecher Children’s Hospital

Dozens of primary and specialty care clinics

Major Research Institutes

Over 200 cash service sites that support the university, hospitals and clinics

About Impac

OHSU consulting partner for over 17 years

Oracle Platinum Partner since inception

Specializations in 7 areas including SOA and BI

Real-world expertise in E-Business Suite consulting and implementations

Project Objectives

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Project Background

• OHSU was manually reconciling cash deposits and disbursements from source systems to bank statements (Oracle AR, Payroll, Banner & Epic)

• In 2011 automated reconciliation process for AR, Banner & Payroll with Oracle Cash Management

• In June 2013 launched project to automate cash reconciliation and accounting for Epic

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Project Evolution

• Integrated Epic Hospital and Professional Billing System with Oracle Cash Management leveraging same infrastructure as Banner Interface

• Enhanced CM interface, adding in cash accounting• Developed new interface to GL to record revenue

and receivable accounting for Epic

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Solutions

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Applications

• Oracle Financial Accounting Hub as a long term strategy to integrate our 3rd party systems with Oracle GL:– Epic Hospital and Professional Billing– Banner Student System– Custom Internal Billing System

• Oracle Cash Management Interfaces & Functionality

Integration Technology

• SOA Suite predecessors implemented in 2001 – Oracle iHub and 3rd party products

• Later, Oracle B2B 10g was introduced for Trading Partner integration

• In 2012, SOA Suite 11g was implemented for Trading Partner integration

• Subsequent successful projects

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SOA Integration Flows for FAH and CM

FAH vs SLA

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AP

FA PO

E-Business Suite General Ledger

SLA

SLA

FA

H

HB External Application

PB External Application

AR

FAH Design – Source Data

• Understand the source data– Dissect the source data to understand what pieces are

available and what logic is needed to create the accounting

– Also understand what data isn’t needed. Confidential information was a important factor

• OHSU had two different patient billing structures but both using EPIC.

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FAH Design – Applications

• Two custom applications - Hospital Billing and Professional Billing – Each had different data sets – Segregation of the data was important security

requirement– Each had their own accounting groups

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FAH Design – Event Model

• Event model is the your first step in designing your custom FAH application

• Within the events model, accounting events are categorized by entity, event class and event type

• Entity = Transactions. – That was our highest level of data. Every line in EPIC is a transaction.

• Event Class = Epic had 4 types of transactions. – Patient Charges, Adjustments, Receipts and Cash Deposits.

• Each Event class had one or more event types.

FAH Design – Event Model

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Event Class Patient Charge

OHSU PB Entity

Event Class Adjustment

Event Class Receipt Posting

Event Class Receipt Deposit

Event Type Patient Charge

Event Type Charge Default

Event Type Adjustment

Event Type Adj Exceptions

Event Type Adjustment

Default

Event Type Receipt

Event Type Receipt

Exceptions

Event Type Receipt Default

Event Type Receipt Deposit

• Each Event Class had a custom transaction object table and a view.

• Each is assigned in the accounting events class options form• The view may not contain every column in the transaction

object table. • The columns in the TO tables represent the data we needed

from the EPIC transactions. We defined the view based on the data attributes we specifically needed for our Accounting.

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FAH Design – Transaction Objects

• We already had existing custom tables we used to interface external Cash transactions to Cash Mgmt Open Interface for reconciliation

• We used these tables for our Cash Mgmt(Deposit) transactions.

• Cash Deposits view it actually looked at these existing cash transactions.

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FAH Design – Transaction Objects

• User Transaction Identifiers are used to show specific data on the actual event when it is created.

• This is a view that is created and assigned to the accounting Event Class options for each event class

• This view is not used for any rule creation. • You can have 10 UTI defined

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FAH Design – User Transaction Identifiers

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FAH Design – Event Class Options

UTI View

TO View

• Journal Line Type: Defines attributes of each JE line (e.g. DR/CR, actual vs budget, transfer to GL in summary/ detail etc.)

• Account Derivation Rule: Defines type and sequence of rules that will be used to create COA string (e.g. constant value, mapping set, default values)

• Mapping Set: Map source value to COA Values

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FAH Design – Journal Entries

• Conditions: Conditions can be placed on JLT and ADR priorities to determine when the Line Type or the Rule priority is used by the transaction.

• Lookup Codes: Are used extensively to define valid values for use in conditions and mapping sets

• Journal Line Definition: Ties together all the Journal Line Types to make the full accounting entry for a transaction–

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FAH Design – Journal Entries

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FAH Design – Journal Line Type

Balance Type

DR/CR Sign

GL Transfer

Accounting Class

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FAH Design – Journal Line Type

Condition on Revenue Adjustment Line Type

Has to be a DR or CR adjustment

not a hospital procedure code

and

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FAH Design – Accounting Definition Rule

Revenue Adjustment has a different rule per segment

Object Segment Rule uses a mapping set

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FAH Design – Mapping Set

Mapping Set to Map Adjustment Type to Object

Source Value

COA Values

to

Adjustment Type Lookup (source data)

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FAH Design – Journal Line Definition

Receivable

Revenue for non-hospital procedure code

Journal Line Definition for standard adjustment

Revenue for hospital procedure code

• Application Accounting Definition: Ties together all accounting logic for the full set of transactional data for an application

• Sub-ledger Accounting Method: Ties together all the AAD for all applications assigned to a ledger.

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FAH Design – Acct Definitions & Methods

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FAH Design – App Accounting Definition

All Event Classes & Types

Application Accounting Definition for

Custom Application

Journal Definition for Each Event Type

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FAH Design – Sub-ledger Accounting Method

Assign Applications

Custom Sub-ledger Accounting Method

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FAH Design – Sub-ledger Accounting Method

Assign Sub-ledger Accounting

Method to Ledger

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FAH SOA Integration Characteristics

– OHSU Canonical Data Models• CDM not used for Transactions – rationale• CDM created for Payments

– OHSU Common Error Handling Framework– Scheduling handled through E-Business Suite– Custom and seeded Business Events leveraged– Relatively high volumes – 100,000 transactions / day

Lessons Learned

• Provide paths in setup to deal with exceptions and bad data

• Develop reports to reconcile to source data and to identify issues (events not create, no accounting)

• Created process to undo and recreate events to accommodate changes

• Check for invalid definitions in interface• Run Gather Stats on for performance improvements

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Questions?

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