Introduction - Fusion Accounting Hub Fundamentals

Introduction to Oracle Fusion
Accounting Hub
Fundamentals
Oracle IDP
Ranjit Lamba, Mangesh Dixit and Sunil Bharwani
Sep 2013
2004 Capgemini - All rights reserved

Xxx/yymmdd - Title of the presentation, Author / 1
Oracle IDP
Oracle Fusion Accounting Hub

(FAH) Fundamentals
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 IDP

Integrations

Oracle IDP

Components
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 IDP

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 IDP

Solution: Scenarios
Scenario One Accounting Integration:
Scenario Two- 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
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 IDP
Accounting Integration Process

Oracle IDP
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

Oracle IDP
Reporting Platform

Oracle IDP
Reporting Features
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 email or other distribution mechanisms
Storing reports in a repository folder structure, using various formats,

including PDF, HTML and spreadsheets

Oracle IDP
Analysis 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

Oracle IDP
Spreadsheet 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

Oracle IDP
Reporting and Analysis To Fit

Your Needs

Oracle IDP
Accounting Transformations
Overview

Oracle IDP
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

Oracle IDP
Concepts
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

Oracle IDP
Accounting Event Model

example

Oracle IDP
Flowchart

Oracle IDP
Flow
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

Oracle IDP
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

Oracle IDP
Subledger Journal Entry Rule

Sets
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

Oracle IDP

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

Oracle IDP

Set Example

Oracle IDP

Set Example

Oracle IDP
How the Different Types of

Rules Fit Together

Oracle IDP
Define Accounting Methods
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

Oracle IDP
Create and Process Subledger

Entries

Oracle IDP
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

Oracle IDP
Applications Coexistence
Configuration
Integration with E-Business Suite overview:
Applications coexistence between Oracle FAH and Oracle EBusiness 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

Oracle IDP
Integration with E-Business

Suite

Oracle IDP
Integration with E-Business

Suite

Oracle IDP
Relevant Setup Tasks
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

Oracle IDP
Applications Coexistence
Configuration
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

Oracle IDP
Integration with PeopleSoft

Oracle IDP
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

Oracle IDP
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

Oracle IDP
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

Oracle IDP
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

Oracle IDP
General Ledger Options
Managing Suspense Accounts
Managing Statistical Units of Measure
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
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

Oracle IDP
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

Oracle IDP
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

Oracle IDP
Consolidations

Oracle IDP
Reporting Only Consolidation

Method
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

Oracle IDP
Reporting Only Consolidations

Oracle IDP
Balance Transfer Consolidation

Method
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

Oracle IDP
Balance Transfer
Consolidations

Oracle IDP
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

Oracle IDP
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

Oracle IDP
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

Oracle IDP
THANK YOU

Oracle IDP

Introduction - Fusion Accounting Hub Fundamentals

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Introduction - Fusion Accounting Hub Fundamentals

Uploaded by

Copyright:

Available Formats

Introduction to Oracle Fusion

2004 Capgemini - All rights reserved

Oracle Fusion Accounting Hub

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

Explain budgeting using Oracle Hyperion Planning integration

2004 Capgemini - All rights reserved

Oracle Fusion Accounting Hub

2004 Capgemini - All rights reserved

Oracle Fusion Accounting Hub

Oracle Fusion Accounting Hub provides the following set of

Oracle Fusion General Ledger

Contains intercompany balancing, an allocation manager for the definition of allocation

Oracle Fusion Financial Reporting

Slices and dices data across dimensions

Oracle Fusion Accounting Transformations

Provides flexible accounting transformation of transactions

2004 Capgemini - All rights reserved

Oracle Fusion Accounting Hub

Oracle Hyperion Data Relationship Management Integration

Requires licensing to use Oracle Hyperion Data Relationship Management

Integration with Oracle E-Business Suite and PeopleSoft General Ledgers

Enables continued use of E-Business suite or PeopleSoft General Ledgers and

Slices and dices data across dimensions

Oracle Hyperion Planning and Oracle Hyperion Financial Management

Provides the opportunity to perform planning, budgeting and consolidation functions in

Requires licensing of each product

2004 Capgemini - All rights reserved

Oracle Fusion Accounting Hub

Scenario One Accounting Integration:

Scenario Two- Reporting Platform:

Perform accounting transformations to account for transactions from nonOracle

Transfer Oracle E-Business Suite or PeopleSoft General Ledger balances to the

Scenario Three- Both Accounting Integration and Reporting

Perform accounting transformations to account for transactions from nonOracle

Transfer Oracle E-Business Suite or PeopleSoft General Ledger balances to the

2004 Capgemini - All rights reserved

Accounting Integration Process

2004 Capgemini - All rights reserved

Accounting Integration Process

Step One Capture Accounting Events:

Configurable to satisfy all transaction capture and accounting representation

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

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

2004 Capgemini - All rights reserved

2004 Capgemini - All rights reserved

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 child value to detail balances,

Building multi-dimensional reports, with multiple hierarchies, using a

Storing reports in a repository folder structure, using various formats,

2004 Capgemini - All rights reserved