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Oracle Financials Implementation Guide
Release 12.1
Part Number E13425-05
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This chapter covers the following topics:


The Oracle E-Business Suite is an integrated suite of business applications that connects and automates the entire flow of business processes across both front and back office operations, and addresses the needs of a global enterprise. Because Oracle E-Business Suite products are engineered to work together, users can streamline the setup process by sharing common setup data across applications.

Implementation Considerations

Implementing the E-Business Suite is dependent on many factors and you will want to set it up according to your industry and business needs. You can optimize your legal and compliance processing by addressing factors like the following in your implementation:

Implementation Guides

Oracle provides a set of implementation guides to help with implementing the Oracle E-Business Suite. This guide, the Oracle Financials Implementation Guide, serves as an introduction to the set. Together with the other implementation guides and your product-specific implementation guides, it leads you through setting up Oracle Financials to efficiently represent your organization and execute your business processes and flows.

Interrelated Guides

When setting up the E-Business Suite, you use the Multiple Organizations feature to define your compliance in respect of national transaction regulations and access to data for your employees and processes. You use Oracle General Ledger to define both a large amount of your reporting and your financial analysis access. You use Oracle Subledger Accounting to define your group reporting compliance. Legal entities are, either individually or collectively, responsible for that compliance and reporting. Together, they drive both local and corporate fiscal reporting, compliance, and security access. The functions described in these guides are designed to help you manage the implementation of control over your compliance and reporting, and of your organization’s processing plan in a centralized and straightforward manner.

Oracle Subledger Accounting Implementation Guide

Use the Oracle Subledger Accounting Implementation Guide to help you set up the document bookkeeping for an accounting entity, either an individual company or a group of companies that can be treated as one. Oracle Subledger Accounting automates your company’s detailed accounting. You can set up your accounting according to local strictures and/or your parent accounting principles using the local currency, your parent currency, and any other currencies your business dictates.

Oracle General Ledger Implementation Guide

Use the Oracle General Ledger Implementation Guide to help you set up ledgers in respect to accounting entities, such as individual companies or groups that can be treated as one. You can account for that entity externally, for management, and for decision making according to your needs. The guide addresses the creation of balanced reporting units within a ledger, as well as the creation of other business units, such as cost centers. It discusses chart of account design and implementation, and setting up calendars. It contains sections on grouping ledgers into ledger sets for ease of management and reporting, and on using multiple ledgers to capture different views of an entire operation.

Oracle Applications Multiple Organizations Implementation Guide

Use the Oracle Applications Multiple Organizations Implementation Guide to set up system organizations that represent your actual organization. These organizations maintain subledger documentation in organizational stores that are clearly distinct from each other, arrange reference data by organization, and provide a basis for security when accessing subledger documents.

Oracle Payments Implementation Guide

This guide describes how Oracle Payments, as the central payment engine for the Oracle E-Business Suite, processes transactions, such as invoice payments from Oracle Payables, bank account transfers from Oracle Cash Management, and settlements against credit cards and bank accounts from Oracle Receivables. This guide also describes how Oracle Payments is integrated with financial institutions and payment systems for receipt and payment processing, known as funds capture and funds disbursement, respectively. Additionally, the guide explains to the implementer how to plan the implementation of Oracle Payments, how to configure it, set it up, test transactions, and how use it with external payment systems.

Oracle Cash Management User Guide

This guide describes how to set up and use Oracle Cash Management to clear your receipts, as well as reconcile bank statements with your outstanding balances and transactions. This manual also explains how to effectively manage and control your cash cycle. It provides comprehensive bank reconciliation and flexible cash forecasting.

Oracle E-Business Tax Implementation Guide

This guide provides a conceptual overview of the E-Business Tax tax engine, and describes the prerequisite implementation steps to complete in other applications in order to set up and use E-Business Tax. The guide also includes extensive examples of setting up country-specific tax requirements.

Oracle Human Resources Management Systems Implementation Guide

Learn about the setup procedures you need to carry out in order to implement Oracle HRMS successfully in your enterprise.

Accounting Setup Manager

Use the Accounting Setup Manager to manage legal entities, ledgers, accounting rules, reporting currencies, and intercompany transactions. You can create an individual legal entity or a group of legal entities that behave as one, and assign the primary ledger to it. You can optionally assign additional ledgers to the legal entity. You select the currencies in which you want to account for the legal entity, the level of accounting detail, the accounting method you want to use for the entity, and the detail of your intercompany elimination system, and management.

Oracle Advanced Global Intercompany System

The Oracle Advanced Global Intercompany System (AGIS) streamlines the intercompany trading and reconciliation process across ledgers. Oracle AGIS allows companies to comply not only with local regulations, but also to follow established corporate standards for processing intercompany transactions between related legal entities of an enterprise. It also provides interactive reconciliation reporting, which allows you to drill down to the details of intercompany account balances so you can quickly find the source of discrepancies in the balances of each trading partner’s account.

Legal Entity Configurator

The Oracle Legal Entity Configurator helps you to conveniently set up and manage your legal structure, legal functions, and supporting legal information in a single user interface. It supports global requirements for entering legal entity information. You record the registration of legal entities in several domains (e.g. income tax, commercial law) and by geographic region with the appropriate government/legal authorities, for the purpose of claiming and ensuring legal and/or commercial rights and responsibilities. The Legal Entity Configurator uses country-specific fields and names to make the user interface intuitive for users in any region, and you can include additional country-specific information that you need to record for each legal entity. It also provides management tools to keep track of the latest information entered so you can easily monitor the required registration status for both legal entities and their establishments.

Accounting Sequencing

Accounting sequencing is the numbering of the accounting entries in respect to subledger and other accounting feeds. It is distinct from document sequencing, which is used to number invoices, payment forms, and other fiscal documents such as debit or credit memos. Local regulations may dictate how accounting entries should be numbered.