Accounting Hub Implementation Guide
11g Release 1 (11.1.2)
Part Number E20374-02
This chapter contains the following:
Oracle Fusion Accounting Hub Features: Overview
Oracle Fusion Accounting Hub: How It Works
Accounting Configuration: Overview
Implementation Options for Oracle Fusion Accounting Hub: Overview
Manage Application Implementation
Oracle Fusion Accounting Hub (FAH) provides a complete set of accounting tools and unparalleled access to financial data.
Oracle Fusion General Ledger best of breed features that provide journal entry import and creation, real time balances, accounting controls, and close functionality. The close functionality contains robust 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 that provides embedded balances cube functionality with multidimensional, online analytical processing (OLAP) of financial information. Quickly slice and dice data across dimensions and drill up, down, and across on any parent level within the chart of accounts.
Oracle Fusion Subledger Accounting rules that provide flexible transformation of transaction and reference information from diverse, non-Oracle, industry applications into accurate, detailed, auditable accounting. Subledger Accounting is also embedded in the Oracle Fusion subledgers such as Payables, Receivables, Assets, and Inventory.
Oracle Hyperion Data Relationship Management, Fusion Edition integration that provides the opportunity to perform charts of accounts and hierarchies maintenance. Data Relationship Management is a master data management application and requires licensing. The functionality also establishes corporate wide accounting structures, for Oracle and non-Oracle ledgers, and automatically updates charts of accounts and hierarchies across multiple ledgers.
Applications coexistence integration with the E-Business Suite (EBS) and PeopleSoft General Ledgers that provides the opportunity to leverage the Oracle Fusion Accounting Hub with minimal implementation effort. Continue to use your E-Business Suite or PeopleSoft applications for transaction processing, while taking advantage of the Oracle Fusion Accounting Hub for financial reporting and analysis.
Oracle Hyperion Planning, Fusion Edition and Oracle Hyperion Financial Management, Fusion Edition integration that provides the opportunity to perform your planning, budgeting, and consolidation functions in an integrated accounting environment. Both products required licensing.
The Oracle Fusion Accounting Hub process can begin by using financial data from any or all of the following:
Non-Oracle external applications including transaction and reference information from industry, specific applications
Oracle Fusion subledgers including subledger journals
Oracle E-Business Suite, Oracle PeopleSoft, and Oracle JD Edwards General Ledgers including account balances
The Accounting Hub process ends with complete reporting and analysis solutions.
The Accounting Hub contains the following components:
Oracle Fusion Subledger Accounting to perform accounting transformations on external system data
Oracle Fusion General Ledger
Oracle Fusion Financial Reporting Center
Integration with Oracle Hyperion Data Management, Fusion Edition for chart of accounts and hierarchy maintenance
Applications coexistence integration with the Oracle E-Business Suite and Oracle PeopleSoft General Ledgers
Integration with Oracle Hyperion Planning, Fusion Edition and Oracle Hyperion Financial Management, Fusion Edition
The Oracle Fusion Accounting Hub allows you to use Subledger Accounting to perform accounting transformations on external, non-Oracle system data. Subledger Accounting is also used to flexibly create accounting for Oracle subledgers such as Oracle Payables and Receivables. Subledger Accounting includes:
Registration of your external systems, indicating what types of transactions or activities require accounting from those systems.
Create a library of transaction and reference information that will be used for defining accounting treatments.
Configurable accounting rules to define accounting treatments for transactions.
Accounting engine that combines transaction and reference information from source systems with accounting rules to create detailed journals stored in an accounting repository.
Detailed subledger accounting journal entry repository to audit and reconcile accounting balances.
Reports and user interface inquiries for analyzing accounting transformations.
Configurable analytical balances based upon source system or reference attributes.
The Oracle Fusion General Ledger combines traditional general ledger functionality with embedded Oracle Hyperion Essbase functionality. The General Ledger functionality includes:
Journal entry creation, including updating of account balances cubes and tables.
Date effective trees for chart of accounts maintenance and financial reporting, including what if analysis.
Automatic balances cube creation from the chart of accounts configuration, simplifying implementation.
Preaggregated balances at every summarization level across each dimension of the chart of accounts and accounting periods, improving reporting performance.
Multidimensional analysis using dimensions, such as the chart of accounts, periods, and currency, to provide drill down and drill through functionally.
Drill to details from summary balances.
Intelligence and analytics embedded within the context of a journal entry, enabling quick and accurate completion of the journal entry process. As journal entries are entered, a what if analysis to the determine the impact of the unposted journals on account balances is displayed in the user interface, eliminating the need to navigate to an inquiry page or run a report to verify the results.
Three balancing segments available in your chart of accounts, enabling more detailed reporting.
Automatic intercompany balancing journal creation in both Subledger Accounting and General Ledger applications, ensuring proper recording of transactions across legal entities.
Allocation Manager rules using complex formulas to distribute revenue and costs throughout the organization, enabling consistent periodic generation of allocation journal entries.
The Oracle Fusion General Ledger provides a Financial Reporting Center with robust financial reporting and analysis using data from your balances cubes. The dimensions contained in your chart of account segments become the direct source of multidimensional analysis. Direct links are maintained to your transactional data permitting comprehensive drill down from journals to transaction details. Use the following tools for your reporting and analysis:
Financial Reporting to generate your reports
Smart View to generate spreadsheet reports
Oracle Transaction Business Intelligence to report using embedded analytics
Oracle Business Intelligence Analytics to provide real time, ad hoc queries from a data warehouse
General Accounting and Journals dashboards to perform online inquiry and dashboard publication
Account Monitor and Account Inspector to perform online multidimensional analysis of accounting balances
The Oracle Fusion Accounting Hub fits into Oracle's broader enterprise performance management framework via integration with Oracle Hyperion Planning, Fusion Edition and Oracle Hyperion Financial Management, Fusion Edition, You can perform:
Financial consolidations using Financial Management
Planning and budgeting using Planning
Oracle Fusion Accounting Hub is integrated with Oracle Hyperion Data Relationship Management, Fusion Edition, which is a master data management solution for creating and maintaining hierarchies across your enterprise. This integration allows you to maintain your charts of accounts values and hierarchies in one central location, and then to synchronize your hierarchies in Oracle Fusion and E-Business Suite General Ledgers. With licensing and integration of Data Relationship Management, you can:
Update and change Data Relationship Management versions and hierarchies. The results of these changes are exported to the values sets in the Oracle Fusion and E-Business Suite General Ledgers, E-Business Suite parent child hierarchies, and Oracle Fusion Trees.
Synchronize charts of accounts and hierarchies across multiple Oracle general ledger instances.
Store segment value attributes, such as account type, start date, and end date, providing the ability to enter such values in Data Relationship Management and integrate them to Oracle Fusion and E-Business Suite General Ledgers.
Submit standardized E-Business Suite Standard Request Submission and Oracle Fusion Enterprise Schedule Service requests from both the E-Business Suite and the Oracle Fusion General Ledgers to import values from Data Relationship Management.
Integration between the Oracle E-Business Suite, Oracle PeopleSoft, and Oracle Fusion General Ledgers can be used to support an applications coexistence strategy. This strategy permits you to continue to use your E-Business Suite or PeopleSoft applications while also using the Oracle Fusion Accounting Hub. Application coexistence provides the ability to:
Expand your reporting and analytical capabilities using the Financial Reporting Center and dashboard features of the Oracle Fusion Accounting Hub. This functionality includes the ability to drill down to E-Business Suite or PeopleSoft account balances and transactions reflected in the Oracle Fusion reports and dashboards.
Continue to use your E-Business Suite or PeopleSoft applications for your procurement, payables, receivables, and any other E-Business Suite or PeopleSoft subledger processes without disruptions.
The Setup and Maintenance work area in the Oracle Fusion Applications is used to manage the configuration of legal entities, ledgers, and reporting currencies that comprise your accounting configuration. To create a new legal entity or ledger, your implementation consultant or system administrator must create an implementation project. This implementation project can be populated by either adding a financials related offering or one or more task lists.
Setup tasks that are not related to the ledger or legal entity specific setup tasks can be invoked from either an implementation project or launched directly from the Setup and Maintenance work area.
There are two offerings predefined for financial implementations.
The Oracle Fusion Accounting Hub offering is used to add the Oracle Fusion General Ledger and Oracle Fusion Subledger Accounting application features to an existing enterprise resource planning (ERP) system to enhance the current reporting and analysis.
The Oracle Fusion Financials offering, which includes the Oracle Fusion General Ledger and Oracle Fusion Subledger Accounting application features, as well as at least one of the subledger financial applications.
When adding an offering to an implementation project, implementation consultants can customize the tasks displayed by adding additional tasks to the implementation project.
The Oracle Fusion Accounting Hub has three possible implementation scenarios that can be used separately or in conjunction with each other. These three scenarios are:
Coexistence with Oracle E-Business Suite and other general ledgers providing enhanced allocations, reporting, and analytical functionality
Accounting for diverse business system events and transactions with configurable and auditable rule based accounting transformations
Expansion of financial reporting enabling creation of multidimensional, self service reporting and analytics with real-time accounting information from a single source with flexible formatting options.
Oracle Fusion Accounting Hub provides embedded integration with the Oracle E-Business Suite and Oracle PeopleSoft General Ledgers. The integration has three main components:
Transfer of accounting balances from the E-Business Suite and PeopleSoft General Ledgers to the Oracle Fusion Accounting Hub General Ledger
Drill down from the Oracle Fusion Accounting Hub General Ledger to the E-Business Suite and PeopleSoft General Ledgers
Synchronization of charts of accounts segment values and hierarchies using Oracle Hyperion Data Relationship Management, Fusion Edition, with E-Business Suite and Oracle Fusion General Ledger. Licensing of Data Relationship Management is required.
See the following guides for details on implementing this scenario:
Oracle General Ledger Implementation Guide Release 12.2 for Oracle E-Business Suite General Ledger
Oracle Hyperion Data Relationship Management, Fusion Edition Administrator's Guide for Oracle Hyperion Data Relationship Management
Oracle Hyperion Data Relationship Management, Fusion Edition Users Guide for Oracle Hyperion Data Relationship Management
The Oracle Fusion Accounting Hub provides accounting for diverse business system events and transactions using configurable and auditable rule based accounting transformations. The Accounting Hub process begins with transactions and data from your non-Oracle, industry specific subledgers and other general ledgers. Subledger and general ledger applications that generate accounting events invoke the Create Accounting process to create journals that can be posted to the Oracle Fusion General Ledger. The process ends with complete reporting and analysis solutions.
See the following for details on implementing this scenario: Define Accounting Transformation Configuration chapter in the Oracle Fusion Accounting Hub Implementation Guide.
Oracle Fusion Accounting Hub enables creation of multidimensional, self service reporting and analytics with real time accounting information from a single source with flexible formatting options. The Financial Reporting Center includes predefined financial reports, the ability to create new reports, and flexible options for dissemination of such reports. The Financial Reporting Center also includes the Account Monitor and Inspector, providing drill down and pivot views of your balances. Oracle Hyperion Smart View provides spreadsheet analytics and Oracle Transaction Business Intelligence, Oracle Business Intelligence Analytics, and Oracle Business Intelligence Publisher provide key performance indicators (KPI), dashboards, and flexible reporting.
See the following guides for details on implementing this scenario:
Oracle Fusion Accounting Hub Implementation Guide for the Oracle Fusion Accounting Hub
Oracle Essbase Database Administrator's Guide for Oracle Essbase
Oracle Hyperion Financial Reporting Administrator's Guide for Oracle Hyperion Financial Reporting
Oracle Enterprise Performance Management Workspace Administrator's Guide for Oracle Enterprise Performance Management
Oracle Hyperion Smart View for Office User's Guide for Oracle Hyperion Smart View
Oracle Hyperion Financial Reporting Studio User's Guide for Oracle Hyperion Financial Reporting Studio
The Manage Applications Implementation business process enables rapid and efficient planning, configuration, implementation, deployment, and ongoing maintenance of Oracle Fusion applications through self-service administration.
The Setup and Maintenance work area offers you the following benefits:
Prepackaged lists of implementation tasks
Task lists can be easily configured and extended to better fit with business requirements. Auto-generated, sequential task lists include prerequisites and address dependencies to give full visibility to end-to-end setup requirements of Oracle Fusion applications.
Specific implementations can become templates to facilitate reuse and rapid-start of consistent Oracle Fusion applications setup across many instances.
A set of built-in reports helps to analyze, validate and audit configurations, implementations, and setup data of Oracle Fusion applications.
With Oracle Fusion Functional Setup Manager you can:
Learn about and analyze implementation requirements.
Configure Oracle Fusion applications to match your business needs.
Get complete visibility to setup requirements through guided, sequential task lists downloadable into Excel for project planning.
Enter setup data through easy-to-use user interfaces available directly from the task lists.
Export and import data from one instance to another for rapid setup.
Validate setup by reviewing setup data reports.
Implement all Oracle Fusion applications through a standard and consistent process.
An implementation project is the list of setup tasks you need to complete to implement selected offerings and options. You create a project by selecting the offerings and options you want to implement together. You manage the project as a unit throughout the implementation lifecycle. You can assign these tasks to users and track their completion using the included project management tools.
You can also create an implementation project to maintain the setup of specific business processes and activities. In this case, you select specific setup task lists and tasks
Implementation projects are also the foundation for setup export and import. You use them to identify which business objects, and consequently setup data, you will export or import and in which order.
When creating an implementation project you see the list of offerings and options that are configured for implementation. Implementation managers specify which of those offerings and options to include in an implementation project. There are no hard and fast rules for how many offerings you should include in one implementation project. The implementation manager should decide based on how they plan to manage their implementations. For example, if you will implement and deploy different offerings at different times, then having separate implementation projects will make it easier to manage the implementation life cycles. Furthermore, the more offerings you included in an implementation project, the bigger the generated task list will be. This is because the implementation task list includes all setup tasks needed to implement all included offerings. Alternatively, segmenting into multiple implementation projects makes the process easier to manage.
Offerings are application solution sets representing one or more business processes and activities that you typically provision and implement as a unit. They are, therefore, the primary drivers of functional setup of Oracle Fusion applications. Some of the examples of offerings are Financials, Procurement, Sales, Marketing, Order Orchestration, and Workforce Deployment. An offering may have one or more options or feature choices.
The configuration of the offerings will determine how the list of setup tasks is generated during the implementation phase. Only the setup tasks needed to implement the selected offerings, options and features will be included in the task list, giving you a targeted, clutter-free task list necessary to meet your implementation requirements.
Offerings and their options are presented in an expandable and collapsible hierarchy to facilitate progressive decision making when specifying whether or not an enterprise plans to implement them. An offering or its options can either be selected or not be selected for implementation. Implementation managers decide which offerings to enable.
The Provisioned column on the Configure Offerings page shows whether or not an offering is provisioned. While you are not prevented from configuring offerings that have not been provisioned, ultimately the users are not able to perform the tasks needed to enter setup data for those offerings until appropriate enterprise applications (Java EE applications) are provisioned and their location (end point URLs) is registered.
Each offering in general includes a set of standard functionality and a set of optional modules, which are called options. For example, in addition to standard Opportunity Management, the Sales offering includes optional functionality such as Sales Catalog, Sales Forecasting, Sales Prediction Engine, and Outlook Integration. These optional functions may not be relevant to all application implementations. Because these are subprocesses within an offering, you do not always implement options that are not core to the standard transactions of the offering.
Offerings include optional or alternative business rules or processes called feature choices. You make feature selections according to your business requirements to get the best fit with the offering. If the selected offerings and options have dependent features then those features are applicable when you implement the corresponding offering or option. In general, the features are set with a default configuration based on their typical usage in most implementations. However, you should always review the available feature choices for their selected offerings and options and configure them as appropriate for the implementation.
You can configure feature choices in three different ways:
If a feature can either be applicable or not be applicable to an implementation, a single checkbox is presented for selection. Check or uncheck to specify yes or no respectively.
If a feature has multiple choices but only one can be applicable to an implementation, multiple choices are presented as radio buttons. You can turn on only one of those choices.
If the feature has multiple choices but one or more can be applicable to an implementation then all choices are presented with a checkbox. Select all that apply by checking the appropriate choices.