D96139GC10 Les14

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Unauthorized reproduction or distribution prohibited Copyright 2016, Oracle and/or its affiliates
Introducing Consolidations
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Objectives
After completing this lesson, you should be able to:

Discuss consolidation methods.
Explore the reporting consolidation option.

Examine the balance transfer consolidation option.
Define integration with Oracle Hyperion Financial
Management with Oracle Fusion General Ledger.
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Oracle Financials Cloud: Enterprise Structures with General Ledger Implementation 14 - 2

Consolidation Methods
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R e able
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Selecththe a n Fusion Accounting Hub consolidation solution for your enterprise:
B n- Only Consolidations: If your subsidiaries and your corporate ledger share
Reporting
n o
the same chart of accounts and calendar.
Balance Transfer Consolidations: If your subsidiaries and your corporate ledger have
either or both different charts of accounts and different calendars.
Financial Management Consolidations: If there are complex factors in your financial
consolidation requirements such as:
- Complex company structures such as joint ventures, minority interest holdings,
partially or fully owned subsidiaries.
- Multiple heterogeneous systems including non general ledger data sources that
are required to support non-financial or industry specific metrics, disclosures, and
footnote schedules.

Reporting Only Consolidation Method: Example
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All subsidiaries
fercorporate ledger share the same calendar.
ath andnsyour
Bh nsubsidiaries
One of your - tra has a local chart of accounts and local currency. This subsidiary
uses a n
o
secondary ledger to record balances in the corporate chart of accounts and the
corporate currency.
Two subsidiaries have a local currency and use reporting currency functionality to record
balances in the corporate currency.
With the Reporting Only Consolidation method, perform the following tasks:
Group the ledgers in a ledger set. This assumes the ledgers share the same chart of
accounts and calendar.
Translate balances to the corporate currency for ledgers not in the corporate currency.
Include these ledgers in the ledger set. In the example, the Reporting Currency and
Secondary Ledgers are included in the ledger set.
Create eliminating entries.
Report using the ledger set and the corporate currency as parameters to view the
consolidated balances.
Note: If each entitys ledger has a different chart of accounts or calendar from the corporate
chart of accounts and calendar, a secondary ledger would need to be maintained that
conforms to the common chart of accounts and calendar so that this could be included in the
consolidation ledger set.
Reporting Only Consolidation Method: Example
Your company, Vision You have four entities:

Corporation, needs to Vision US
consolidate across its entities Vision Canada

worldwide using the Reporting
Only Consolidation Method. Vision UK
Vision Germany
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a
Vision n uses secondary ledgers and reporting currencies to align all ledgers
Btoh thencorporate
- t r a chart of accounts, calendar, and currency.
n o
The Vision Corporate ledger is an elimination ledger to hold the elimination entries.
Financial Reporting functionally is used to create the consolidation reports.

Reporting Consolidation with Multiple Levels: Level One
Vision North America Vision EMEA Elimination

Elimination Ledger with: Ledger with:
Vision US Vision UK
Vision Canada Vision Germany
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The Vision
t r a n Consolidation can happen at two levels. For level one, both ledger
B n- created for the three ledgers to enable creation of consolidation reports in
sets have been
noReporting.
Financial
Level One creates eliminations for transactions between Vision US and Vision Canada and
then for transactions between Vision UK and Vision Germany.

Reporting Consolidation with Multiple Levels: Level Two
Vision Corporate elimination ledger is used to record

elimination entries between all four entities.
A ledger set has been created for the five ledgers to enable
creation of consolidation reports in Financial Reporting.
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Level h
two s fe
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arcreates for transactions between all four subsidiaries.
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Elimination Entries Example
The arrows represent the business transactions occurring

between the entities.
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The balances
Bhset.n-tra
ledger
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Elimination Entries Example: Transaction
Vision US pays Vision Canada 10,000 USD for copper wiring.

Company Company Debit Credit

Vision US 10,000 USD
Expense due from
Vision Canada
Vision US I/C 10,000 USD
Payable due from
Vision Canada
s a
Vision Canada I/C 10,000 USD h
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Receivable from o m
Vision US p e c uide
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Vision Canada r
a tude 10,000 USD
Revenue received m
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Elimination Entries NA Level One Example:
Elimination Entry
The eliminations are accomplished using the Calculation
Manager by creating allocation rules.
The elimination adjustments are recorded in an elimination

ledger.
Company Company Debit Credit
Vision US I/C 10,000 USD
Payable
Vision US Expense
s 10,000 USD a
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Vision Canada 10,000 USD
p e c uide
Revenue h nt G
Vision Canada I/C r @
a tude 10,000 USD
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Receivable
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Balance Transfer Consolidation Method
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ath subsidiaries
If a
multiple
h calendar,
t r a n and the corporate ledger do not share the same chart of accounts
Band - use the Balance Transfer Consolidation method and the reporting
non listed in the graphic.
solutions
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 Run
the Transfer Ledger Balances Process which transfers between any source and target
ledger pair or the Balance Transfer process for Balance Level secondary ledgers.
Create eliminating entries using journal entries or the Calculation Manager in the
corporate consolidation ledger.
Generate a report on the consolidated balances net of eliminations in the corporate
consolidation ledger.

Transfer Ledger Balances Process Parameters
Source and Target Ledgers

Chart of Accounts Mapping
Source Ledger and Target Ledger Period

Run Journal Import
Create Summary Journals
Run AutoPost
Balancing Segment
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Practice 14-1 Overview: Creating a Chart of Accounts
Mapping
This practice covers the following topics:
Mapping chart of accounts.
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Practice 14-2 Overview: Submitting the Transfer Ledger
Balances Process
This practice covers submitting the transfer ledger balances
process.
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Reporting Only Versus Balance Transfer: Pros
Reporting Only Consolidation

No need to run additional processes to consolidate unless
ledgers have a different currency than the consolidation

currency.
View the consolidated balances anytime. This cannot be done
in the Balance Transfer Consolidation method because that
method requires a balance transfer be done to achieve
consolidation. a
Faster close. a s
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o ide
Balance Transfer Consolidation: Does not requireeacstandardized
chart of accounts and calendar. h p t Gu
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nsf that use either consolidation method, verify that the translation to
ara trabalances
Whenhreviewing
the B - currency is current.
consolidation
non

Reporting Only Versus Balance Transfer: Cons
Reporting Only Consolidation: Requires a standardized chart

of accounts and calendar for the subsidiaries and corporate
ledgers to group ledgers into ledger sets.

Balance Transfer Consolidation:
May require an additional consolidation ledger to maintain
balances or the current parent ledger can serve as the
consolidation ledger.
You need to run the balance translation process if the currency
is different from the consolidation currency, and then run a s
the a
transfer processes to view the consolidated balances. m )h
o ide
clabor
Maintaining charts of accounts mappings can
h e
be
p t Gu
intensive.
a r@ den
Outdated balance transfers have - k utombe reversed
S tu and posted,
and then a new balance transfer
e d dy process
e t his needs to be run every
r s
ath balance
time the source ledger's
a r o u changes.
e t
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Copyright 2016, Oracle and/or its affiliates. All rights reserved.
e
R ra
r t h
a nsfefor Balance Transfer Consolidation:
a
Additional Information
Bh n-tuse
Youocan
ra your parent ledger and just transfer the subsidiary balances directly into
n ledger.
that
When the source ledgers balances change may require translation to be run again if
ledger currency is different than consolidation currency. The previous transfer will need
to be reversed and the transfer run again.

Oracle Hyperion Financial Management Integration
Overview
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Financial Management Integration Option
The Oracle Fusion Accounting Hub includes integration to

Oracle Hyperion Financial Management through the
Enterprise Resource Planning (ERP) Integrator.

Use the integration to bring general ledger balances from the
Oracle Fusion Accounting Hub to Oracle Hyperion Financial
Management to perform complex consolidations.
Drill through from Oracle Hyperion Financial Management to
the Oracle Fusion Accounting Hub balances. a
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Financial Management Integration Implementation
Map chart of accounts values and hierarchies from the Oracle

Fusion Accounting Hub to the Oracle Hyperion Financial
Management dimensions.
Load data from the general ledger balances table to Oracle
Hyperion Financial Management after performing account
transformation of the Oracle Fusion Accounting Hub chart of
accounts in Oracle Hyperion Financial Management.
Perform advanced consolidation in Oracle Hyperion Financial a
Management. a s
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Drill through from Oracle Hyperion Financial Management
the Oracle Fusion Accounting Hub balanceshp storedt Gin the
r @ n
general ledger balances table. ma tudeku is S
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Mapping Segments to Financial Management
Dimensions
Map one to one or concatenate segments into a single Oracle
Hyperion Financial Management dimension.
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Whenhintegrating n Oracle Hyperion Financial Management, you can use the above
B - consolidation.
dimensionsnfor
n o
Data is summarized across segments that are not mapped to Oracle Hyperion Financial
Management dimensions.
In this example:
Company is mapped to Company.
Cost Center and Line of Business are concatenated and mapped to Department
Account is mapped to account.
Product is mapped to Product.
Intercompany is not mapped and its data is summarized.

Summary
In this lesson, you should have learned how to:

Discuss consolidations methods.
Explore the reporting consolidation option.

Examine the balance transfer consolidation option.
Define integration with Oracle Hyperion Financial
Management with Oracle Fusion General Ledger.
s a
h
) a
o m
p e c uide
@ h nt G
r
a tude
u m
d y -k his S
r e d se t
a r ath e to u
e dd ble l
t h R ra
a r a nsfe
Bh n-tra
no

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u m
d y -k his S
r e d se t
a r ath e to u
y (bh icens
e dd ble l
t h R ra
a r a nsfe
Bh n-tra
no

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14

After completing this lesson, you should be able to:

Explore the reporting consolidation option.

Oracle Financials Cloud: Enterprise Structures with General Ledger Implementation 14 - 2

Oracle Financials Cloud: Enterprise Structures with General Ledger Implementation 14 - 3

Your company, Vision You have four entities:

consolidate across its entities Vision Canada

Oracle Financials Cloud: Enterprise Structures with General Ledger Implementation 14 - 5

Vision North America Vision EMEA Elimination

Oracle Financials Cloud: Enterprise Structures with General Ledger Implementation 14 - 6

Vision Corporate elimination ledger is used to record

Oracle Financials Cloud: Enterprise Structures with General Ledger Implementation 14 - 7

The arrows represent the business transactions occurring

Oracle Financials Cloud: Enterprise Structures with General Ledger Implementation 14 - 8

Vision US pays Vision Canada 10,000 USD for copper wiring.

Company Company Debit Credit

Oracle Financials Cloud: Enterprise Structures with General Ledger Implementation 14 - 9

The elimination adjustments are recorded in an elimination

Oracle Financials Cloud: Enterprise Structures with General Ledger Implementation 14 - 10

Oracle Financials Cloud: Enterprise Structures with General Ledger Implementation 14 - 11

Source and Target Ledgers

Source Ledger and Target Ledger Period

Oracle Financials Cloud: Enterprise Structures with General Ledger Implementation 14 - 12

Oracle Financials Cloud: Enterprise Structures with General Ledger Implementation 14 - 13

Oracle Financials Cloud: Enterprise Structures with General Ledger Implementation 14 - 14

Reporting Only Consolidation

ledgers have a different currency than the consolidation

Oracle Financials Cloud: Enterprise Structures with General Ledger Implementation 14 - 15

Reporting Only Consolidation: Requires a standardized chart

ledgers to group ledgers into ledger sets.

Oracle Financials Cloud: Enterprise Structures with General Ledger Implementation 14 - 16

Oracle Financials Cloud: Enterprise Structures with General Ledger Implementation 14 - 17

The Oracle Fusion Accounting Hub includes integration to

Enterprise Resource Planning (ERP) Integrator.

Oracle Financials Cloud: Enterprise Structures with General Ledger Implementation 14 - 18

Map chart of accounts values and hierarchies from the Oracle

Oracle Financials Cloud: Enterprise Structures with General Ledger Implementation 14 - 19

Oracle Financials Cloud: Enterprise Structures with General Ledger Implementation 14 - 20

In this lesson, you should have learned how to:

Explore the reporting consolidation option.

Oracle Financials Cloud: Enterprise Structures with General Ledger Implementation 14 - 21

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