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Oracle® Fusion Accounting Hub Implementation Guide
11g Release 1 (11.1.3)
Part Number E20374-03
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5 Define Period Close Components

This chapter contains the following:

Opening First Period: Overview

Period Close Components: Explained

Manage Allocations and Periodic Entries

Manage Revaluations

Manage Period Close

Opening First Period: Overview

For all ledgers, primary, secondary, and journal and subledger level reporting currencies, open the first period of the ledger when you are ready to transact in that period.

To open the first period of your ledgers, navigate to the Open First Period task in the primary ledger task list and click the Go to Task icon. On the submission page, select the ledger and the period to open. Click the Submit button to launch the open period process.

There are other ways to open the first period or subsequent periods without going into the Setup and Maintenance work area. You can maintain the ledgers' period statuses from the:

Period Close Components: Explained

While implementing your accounting configuration, optionally define and maintain the period close components to customize your accounting configurations setup.

Period close components include allocations, period entries, revaluation, and historical rates.

If you use allocations, revaluation, or translation, configure the following tasks under the Define Period Close Components parent task in your implementation project:

Manage Allocations and Period Entries

Manage Allocations and Period Entries is a manual task in the implementation project. Use the Allocation Manager to create allocations and other formulaic journal templates for generating periodic journal entries automatically. Base formulas on multiple criteria.

You must perform an external procedure outside the Setup and Maintenance work area to complete this task. In order to setup your allocations rules, navigate to the Journals work area and click the Create Allocations Rules task from the Tasks pane. This task navigates you to Allocation Manager, a framework that enables you define your allocation rules and formulas using a graphical interface and intuitive step-by-step wizards.

Manage Revaluations

Defines currency revaluation options, such as the range of accounts to revalue and the gain or loss accounts. Revaluation is done to adjust foreign entered amounts due to currency fluctuations. Navigate to the Manage Revaluations page, and define and generate your revaluation definitions.

Manage Historical Rates

Historical rates are the weighted average rate for transactions that occur at different points in time. Used by the system to calculate the conversion rate on equity account balances during foreign currency translation of the balance sheet.

Navigate to the Currency Rates Manager page to define and maintain your historical rates that are used in the translation process. In Oracle Fusion General Ledger, you can currently define historical rates using an ADF Desktop Integrator spreadsheet.

To create new historical rates, specify the required Ledger and the other optional fields, as needed. Click the Create in Spreadsheet button to open the spreadsheet for uploading.

To update the existing historical rates for your ledgers, click the Edit in Spreadsheet button, the spreadsheet is prepopulated with the existing historical rates.

Note

Before using the historical rates spreadsheet, install the ADF Desktop Integrator client as an add on to Microsoft Excel.

Manage Allocations and Periodic Entries

Allocation and Periodic Entries: Overview

In Oracle Fusion General Ledger, use the Allocation Manager to create allocations and other formulaic journal templates for generating periodic journal entries automatically. Base formulas on multiple criteria. For example, use account balances or statistical amounts to allocate shared revenue or costs across multiple organizational units and ledgers. Define complex computations based on variables from different charts of accounts. Group journal formulas together and execute sequentially to update account balances in a step-by-step process.

The Allocation Manager provides flexibility, automation, intelligence, and control in distributing costs and revenues across the enterprise. In addition, the Allocation Manager:

Access the Allocation Manager from the Tasks pane of the General Accounting dashboard or Journals work area by clicking on the:

Note

For more information, see:

Allocation Manager: Overview

The Allocation Manager creates, validates, deploys, and administers sophisticated allocation rules. In the Allocation Manager:

There are three types of objects that can be created in Allocation Manager:

Allocation Security: Explained

The following privileges and permissions are associated with the Allocation Manager:

Allocation Manager Toolbar: Explained

In addition to the Oracle Hyperion Enterprise Performance Management Workspace buttons, the Allocation Manager toolbar displays buttons that are specific to the Allocation Manager. Not all buttons display in all the views and designers within the Allocation Manager.

The Allocation Manager toolbar consists of the following buttons:

The Allocation Manager toolbar adds the following buttons when you open a rule:

Allocation Manager Menus: Explained

Allocation Manager menus and menu options display in addition to Oracle Hyperion Enterprise Performance Management Workspace menus and menu options. The menus and options vary depending on the view you are using and the object with which you are working. The default view of the Allocation Manager displays the following menus when you launch Allocation Manager, System View.

Note

This topic describes the Allocation Manager menu options only.

File Menu

Enables you to create new objects, open and close objects, import and export objects, print rules, and log off.

Note

Not all of these file menu options are available for the products that use Allocation Manager.

Edit Menu

Enables you to edit objects you select. It is available from most of the views and from within the Rule and Component definition pages.

Note

The Edit menu is not available within the Deployment View.

View Menu

Enables you to open different views.

Tools Menu

Enable you to install other products, search for objects, create a filtered list of objects for the List View, edit the caption of an object, and access the Variable Navigator and Variable Designer.

Actions Menu

Enables you to validate and deploy objects you select in the views and from within the Rule and Ruleset Designers. Not all of the Actions menu options are available from within the views and designers.

Using Flow Charts: Explained

View rules and templates, and the components that comprise them, in a flow chart within the Rule Designer. When you open a rule, move amongst the components that comprise it, for example, formulas, ranges, and loops, by selecting them in the flow chart. Increase or decrease the size of the flow chart to view or hide details of the components.

When you select a component in the flow chart, its properties, usages, and other information are displayed in tabs below the flow chart. As you move among the components, the tabs below the flow chart change. For example, if you open an allocation rule that contains a formula component, and select the formula component in the flow chart the following properties are displayed:

Views: Explained

Views enable you to see Allocation Manager objects in different contexts. For example, the Deployment View displays objects according to whether they are deployed or not deployed. The Custom View displays objects according to filters and criteria that you select.

The Allocation Manager contains the following views:

List View

The List View contains a filtered list of Essbase applications, or databases, and objects, rule sets, rules, or formula components, according to filter criteria you specify.

System View

The System View is the default view that is displayed when you launch the Allocation Manager. It contains a list of all of the applications and objects to which you have access. Your access privileges are determined by the role you are assigned in Shared Services. For each object, the owner, the user who made the last change, and the date the changes were last made are listed.

Custom View

The Custom View enables you to create folders and drag and drop objects into them to create a view that contains only the objects you want. This view enables you to organize objects in a way that is meaningful to you.

Deployment View

The Deployment View contains a list, by application type and application, of the rules and rule sets that are deployable with their deployment and validation status. From this view, select rules and rules sets in an application to make them deployable. Then deploy one or more rules or rule sets (known as a partial deployment), or you can deploy all rules and rule sets in an application (known as a full deployment).

View Pane

The View Pane enables you to create or open an object. Display the View Pane in the left frame of the window. Depending on whether you are working in a rule or a rule set, the Rule or Ruleset Palette, is displayed in the View Pane. In the Palette, drag new and existing objects and drop them into the rule, rule set, or flow chart.

When working with views, display or hide the View Pane using the View menu. In the Custom View, drag and drop new and existing objects from the View Pane into the custom folders you create. In the System and List views, the View Pane is hidden by default. In the Deployment View, the View Pane is not available.

Note

The content of the View Pane varies depending on which view you are in and whether you are working with a rule set, a rule, a template, or a component.

The following table lists the tasks that can be performed from the various views in the Allocation Manager.


Tasks

List View

System View

Custom View

Deployment

Create, open, rename, delete, refresh, and close objects

Yes

Yes

Yes

Yes

Set preferences

Yes

Yes

Yes

Yes

Import and export objects

Yes

Yes

Yes

Yes

Show the usages of objects

Yes

Yes

Yes

Yes

Create a copy of objects

Yes

Yes

Yes

Yes

Print a business rule

Yes

Yes

Yes

Yes

Select views

Yes

Yes

Yes

Yes

Exit or log off Workspace

Yes

Yes

Yes

Yes

Work with favorites

Yes

Yes

Yes

Yes

Perform an advanced search

Yes

Yes

Yes

Yes

Access help

Yes

Yes

Yes

Yes

Filter objects in the view according to criteria you specify

Yes

 

 

 

Work with variables

Yes

Yes

 

Yes

Validate objects

Yes

 

 

Yes

Create a shortcut to a business rule

 

Yes

 

 

Import and export business rules and other objects

 

Yes

Yes

 

Validate and migrate objects

 

Yes

Yes

 

Change the owner of an object

 

 

Yes

Yes

Deploy objects

 

 

 

Yes

Filtering Objects in the List View: Examples

You can use filters in the List View to filter objects according to:

Scenario

To create a filtered list of objects in the List View:

  1. From the System View, select View, List View.

    The Filter dialog is displayed the first time you open the List View. If you select filtering options, then close the List View to work in the System or Custom View. When you reopen the List View, the filter dialog is not displayed. If you want to change the filtering options when you reopen the List View, select Tools, Filter to open the Filter dialog.

  2. In the Filter dialog, on Filter Options, under Application Type, select Essbase.

  3. Do one of these tasks:

  4. Click OK.

Generating Allocations and Periodic Entries Manually: Worked Example

This example demonstrates how to generate an allocation or periodic entry manually from the Oracle Fusion General Ledger.

You are the General Accountant for Infusion America Inc. You have created allocation and periodic journal entry definitions for several monthly entries. You now generate these entries.

Note

Schedule allocations and periodic entries in the Journals work area for automatic generation.

Prior to generating the allocation and periodic entries, the following tasks must be completed:

Generating Allocations and Periodic Entries Manually

  1. From the Navigator, click the Journals link to open the Journals work area.
  2. In the task pane of the Journals page, click the Generate Allocations link to open the Submission page.
  3. Optionally select one or all of the following options:
  4. Select a rule or rule set from the list of values.
  5. Enter the submission parameters, including Ledger, Balancing Segment Value, and Period. The application automatically sets the last day of the submission period as the Accounting Date and Calculation Effective Date.
  6. Accept the selected check box for the Post Allocations option to enable the process to post the journal entries.

    If you deselect the check box for the Post Allocations option, you must post the entry manually or define an AutoPost Criteria Set to automatically post the journal entries.

  7. Click Submit.

    After the generation process is complete, the journal entries created by the process are available for inquiry on the Journals page.

FAQs for Manage Allocations and Periodic Entries

How can I access the Allocation Manager?

Login into the Oracle Fusion General Ledger application and navigate to the Journals work area. From the Journals work area select the Create Allocation Rules link and automatically log into the Allocation Manager in Workspace to create new allocation rules or rule sets.

Note

The application or the balances cube that is currently selected in the General Ledger Data Access Set is automatically selected in the Allocation Manager.

How can I create a folder in the Custom View?

In the Custom View, create folders that contain only the allocation rules, allocation rule sets, and formulas you want to view and work with. To add objects to your folders, drag them from the Existing Objects pane and drop them into the folders.

To create a folder in the Custom View:

  1. In the System View, select View, Custom View.

  2. In the Custom View, right-click the Essbase application type, and select New Folder.

  3. In New Folder, enter a name for the folder.

  4. Click OK.

Tip

You can create nested folders by right-clicking the folder you want to create a folder in and selecting New Folder.

How can I rename a folder in the Custom View?

Rename the folders you create in the Custom View.

To rename a folder in the Custom View:

  1. In the System View, select View, Custom View.

  2. In the Custom View, expand the Essbase application type.

  3. Right-click the folder you want to rename, and select Rename.

  4. In the Rename Folder, enter a new name for the folder.

  5. Click OK.

Manage Revaluations

Revaluation Process: Explained

The revaluation process is used to adjust account balances denominated in a foreign currency. Revaluation adjustments represent the difference in the value of the balance due to changes in conversion rates between the date of the original journal entry and the revaluation date. These adjustments are posted through journal entries to the underlying account with the offset posted to an unrealized gain or loss account. All debit adjustments are offset against the unrealized gain account and all credit adjustments are offset against the unrealized loss account. If the same account is specified in the Unrealized Gain Account and Unrealized Loss Account fields, the net of the adjustments is derived and posted.

For balance sheet accounts, the revaluation journal entries are reversed in the next period. AutoReverse can be used to automate the reversals. For income statement accounts that use the PTD method of revaluation, the revaluation journal entries aren't reversed since each period's revaluation adjustment is just for that period.

In Oracle Fusion General Ledger, the revaluation functionality provides the following advantages:

Definition

When defining your revaluations, perform the following:

Note

Income statement accounts can also be revalued using YTD method.

Hierarchies and flexible account selection criteria, such as usage of parent values from your account hierarchy, streamlines maintenance of revaluation definitions. Leveraging hierarchy versions extends your revaluation definitions during organizational changes. Adjust account selection criteria monthly to retrieve the accounts that need to be revalued for the current accounting period.

Share revaluation definitions across ledgers that have the same chart of accounts to reduce maintenance.

Generation

Generating revaluations include:

Always run revaluation to bring monetary balances to current rates before performing currency translation or remeasurement.

Revaluation Execution Report

The Revalue Balances process automatically generates the Revaluation Execution report when you run revaluation. This report shows the details of your account balance revaluation and the journal batches created after running revaluation. The report includes the currencies and revaluation rates used to revalue your accounts, the unrealized gain or loss account in which you recorded net gains and losses, and the range of accounts revalued. The report also prints the names of your batch and journals that the revaluation process creates for each foreign currency, as well as the total debits and credits of the created entries.

If the Revaluation process cannot locate rates for one or more currencies, balances are not revalued for those currencies. In this case, the Revaluation process completes with a warning and the execution report lists which currencies are missing rates.

Accounting for Unrealized Gain or Loss on Revaluation: Explained

Revaluation launches a process that revalues the ledger currency equivalent balances for the accounts and currencies you select, using the appropriate current rate for each currency. Resulting unrealized gain or loss amounts are posted to the unrealized gain or loss accounts or to the cumulative translation adjustment (CTA) account you specify, and are balanced by balancing segment values. This process creates a revaluation journal which can be posted automatically.

Oracle Fusion General Ledger creates journal entries to adjust the ledger currency balances for conversion rate fluctuations, in accordance with Statement of Financial Accounting Standards (SFAS) No. 52, Foreign Currency Translation and International Accounting Standard (IAS) 21, The Effects of Changes in Foreign Exchange Rates.

The revaluation journal entries generated and posted in the primary ledger are automatically generated, converted, and posted to each of their reporting currencies. Define the CTA account for unrealized gains or losses in the reporting currency prior to running revaluation.

Income Statement Accounts Revaluation Rule: Explained

Revaluation is the process which adjusts asset or liability accounts that may be materially understated or overstated due to a fluctuation in the conversion rate between the time the transaction was entered and the time revaluation takes place. You may want to revalue income statement accounts as well. The Income Statement Accounts Rule indicates whether period-to-date (PTD) or year-to-date (YTD) method is to be used when revaluing income statement accounts.

Click the Income Statement radio buttons on the Create Revaluation page to specify whether you want to revalue income statement accounts using PTD or YTD balances. There are two radio buttons, one for PTD and one for YTD.

If you select to revalue PTD balances for income statement accounts, the process continues to appropriately revalue YTD balances for balance sheet accounts. In the revaluation definition if the range of accounts consists of both income statement and balance sheet accounts and you select PTD as an option for income statement account revaluation rule, a separate revaluation journal is created for the income statement accounts. Revaluing the PTD balance of your income statement accounts creates weighted average YTD balances using period rates from each corresponding period against the PTD account balance in compliance with the Statement of Financial Accounting Standards (SFAS) No. 52, Foreign Currency Translation.

To summarize, when you run revaluation on your income statement accounts, the process produces two separate journal entries; one that revalues your balance sheet accounts and another for your income statement accounts. You do not need to reverse the PTD revaluation journal entry for your income statement accounts in the subsequent period since that revaluation only applies to last period's activity.

Note

This functionality only applies when the range of accounts to be revalued in the revaluation definition consist of income statement accounts in addition to balance sheet accounts. Normally only balance sheets accounts are revalued.

Revaluing Across Multiple Balancing Segments: Worked Example

This example demonstrates how to revalue foreign currency balances across multiple balancing segments. Your company, InFusion America, Inc. has three lines of business. You revalue your foreign currency account balances for two of your divisions, Air Components and Repair Parts. Your Installation Services line of business does not have foreign currency transactions. Your company is your primary balancing segment and your lines of business are represented in your secondary balancing segment.

Note

Enable up to three balancing segments to use the multiple balancing segment feature.

The following are points to consider in running the revaluation process.

Defining Revaluations

  1. From the Manage Revaluations page, click the Create icon.
  2. Enter the values in the following table in the correct fields.

    Field

    Value

    Name

    InFusion America Revaluation

    Description

    Revaluation for all foreign currency balances.

    Chart of Accounts

    InFusion America Chart of Accounts

    Currency

    Leave blank

    Note

    If left blank, all currencies are revalued and after saving, the field automatically displays: All currencies.

    Conversion Rate Type

    Daily

    Days to Roll Forward

    5

    Unrealized Gain Account

    011-00-96600000-0000-000-000

    Unrealized Loss Account

    011-00-96700000-0000-000-000

    Income Statement Account Basis

    PTD

    Post Automatically

    Yes


  3. In the Revaluation Accounts region, click the Add Row icon.
  4. Click the Change filter conditions icon to enter the filter used to select the accounts to revalue.
  5. Click the Add Field drop down arrow and select your company, InFusion America Inc. from the list.

    Field

    Value

    Equals

    011


  6. Click the Add Field drop down arrow and select your two Lines of Business: 30 for Air Components and 40 for Repair Parts.

    Note: Your Installation Services line of business, 50, is not included because it does not have foreign currency transactions.

    Field

    Value

    Between

    30

    40


  7. Click the Add Field drop down arrow and select Account from the list.

    Field

    Value

    Between

    10000000

    29999999


  8. Click OK to accept your filters.
  9. Click the Save and Close button to save your revaluation.

    Optionally, select the Save and Generate buttons to run the revaluation immediately.

Manage Period Close

Opening First Period: Overview

For all ledgers, primary, secondary, and journal and subledger level reporting currencies, open the first period of the ledger when you are ready to transact in that period.

To open the first period of your ledgers, navigate to the Open First Period task in the primary ledger task list and click the Go to Task icon. On the submission page, select the ledger and the period to open. Click the Submit button to launch the open period process.

There are other ways to open the first period or subsequent periods without going into the Setup and Maintenance work area. You can maintain the ledgers' period statuses from the: