1 Process Integration Pack for Oracle Financial Management

This chapter provides an overview of the Financial Management process integration pack and includes the following sections:

• Section 1.1, "Overview"

• Section 1.2, "Participating Applications"

• Section 1.3, "Business Process Flow"

• Section 1.4, "Assumptions and Constraints"

1.1 Overview

This process integration pack (PIP) interacts with other applications, namely Oracle Transportation Management (OTM) and Oracle E-Business Suite (EBS) that are required to enable the integration process.

Oracle Financial Management process integration pack (PIP) provides best-of-breed solution that enables organizations to build a seamless and robust financial business process to manage invoice remittance between customers and service providers

1.1.1 Key Benefits

The Financial Management PIP streamlines the accounts payable and accounts receivable process between Oracle Transportation Management and Oracle E-Business Suite Financials, including supplier synchronization, integrated freight payment, and customer billing, and accruals.

These are the key benefits for this integration pack

• Automate revenue recognition and cost accruals accurately.

• Single source of truth for supplier profiles and payments.

• Automated customer billing process to support complex business rules.

• Reduce integration time and costs.

1.1.2 Security

Oracle Financial Management Integration Pack has been enhanced with Oracle Web Services Manager (OWSM), which enables attaching OWSM policies to services and passing the OTM password information through csf-keys.

For more information about security validation and csf-key, see Oracle Fusion Middleware Developer's Guide for Oracle Application Integration Architecture Foundation Pack, "Working with Security" and Oracle Fusion Middleware Installation Guide for Oracle Application Integration Architecture Foundation Pack.

1.2 Participating Applications

This section provides an overview of the applications participating in the process integration and includes the following topics:

• Section 1.2.1, "Oracle Transportation Management"

• Section 1.2.2, "Oracle E-Business Suite Financials - General Ledger"

• Section 1.2.3, "Oracle E-Business Suite Financials - Payables"

• Section 1.2.4, "Oracle E-Business Suite Financials - Receivables"

1.2.1 Oracle Transportation Management

Oracle Transportation Management (OTM) delivers robust transportation planning and execution capabilities to shippers and third-party logistics providers. It integrates and streamlines transportation planning, execution, freight payment, and business process automation on a single application across all modes of transportation, from full truckload to complex multi-leg air, ocean, and rail shipments.

Regardless of the size or the volume of the business, OTM delivers the capabilities needed in an open-standards-based architecture that allows to start with a single component or any mix of components and also gives the flexibility to grow easily, without installing or reinstalling added functionality.

For more information about Oracle Transportation Management, see Oracle Transportation Management User Guide.

1.2.2 Oracle E-Business Suite Financials - General Ledger

Oracle General Ledger (GL) is a comprehensive financial management solution that provides highly automated financial processing, effective management control, and real-time visibility to financial results. It provides everything needed to meet financial compliance and improve the organizations bottom line. Oracle GL is part of the Oracle E-Business Suite, an integrated suite of applications that drive enterprise profitability and reduce costs.

In this complex, global, and regulated environment, finance organizations face challenges in trying to follow local regulations and multiple reporting requirements. Oracle GL allows companies to meet these challenges in a very streamlined and automated fashion. Multiple ledgers can be assigned to a legal entity to meet statutory, corporate, regulatory, and management reporting. All accounting representations can be simultaneously maintained for a single transaction. For example, a single journal entered in the main, record-keeping ledger can be automatically represented in multiple ledgers even if each ledger uses a different chart of accounts, calendar, currency, and accounting principle.

Additionally, Oracle General Ledger provides complete multi-currency and language functionality to satisfy the most demanding global financial requirements. The organization can capture and report on any number of currencies from the balance level to the sub-ledger level. Currency conversion, revaluation, re-measurement, and translation are all performed in accordance with local and international accounting standards to improve internal controls and increase efficiency.

For more information about Oracle E-Business Suite Financials - General Ledger, see Oracle E-Business Suite Financials - General Ledger Guide.

1.2.3 Oracle E-Business Suite Financials - Payables

Oracle Payables improves margins, instills corporate and fiscal discipline, and optimizes business relationships. It is the cornerstone of Oracles Procure-to-Pay and Travel and Expense Management solutions, seamless and comprehensive business flows that help manage the total enterprise spend.

Oracle Payables provides the tools to control your cash flow, minimize errors and overpayments, and eliminate inefficiencies with:

• Real-time, accurate cash position, and forecast information, so the organization can plan payment runs and major disbursements appropriately.

• Minimum and maximum payment controls to better manage cash flow.

• Standard reports that allow you to eliminate duplicate and unauthorized payments.

• Disbursement requests that allow you to pay non-supplier payees and give detailed visibility of status.

For more information about Oracle E-Business Suite Financials - Payables, see Oracle E-Business Suite Financials - Payables Guide.

1.2.4 Oracle E-Business Suite Financials - Receivables

Oracle Receivables allows organizations to streamline invoicing, receipt, and customer deduction processing while improving cash flow, optimizing customer relationships, and providing strategic information. It provides the flexibility to meet the demands of a global market with strong financial controls to assist in installing corporate and fiscal discipline. Oracle Receivables is the cornerstone of Oracles Credit to Cash solution that helps you improve cash flow, increase efficiencies, and optimize customer relationships.

Oracle Receivables seamlessly manages invoicing requirements across the Oracle E-Business Suite and offers importing capabilities to extend this service to non-Oracle ordering systems. There is no need for complex coding and customization traditionally associated with creating customer or industry centric invoices. Invoicing types include traditional invoices, balance forward billing, installment billing, consolidated monthly billing, chargeback, and deposits.

For more information about Oracle E-Business Suite Financials - Receivables, see Oracle E-Business Suite Financials - Receivables Guide.

1.3 Business Process Flow

The Oracle Financial Management process integration pack consists of these integration flows:

• Currency exchange rates

• Suppliers

• Payable invoices

• Receivable bills

• Accruals and reversals

• Customers

Figure 1-1 illustrates the Financial Management Business process flow:

Figure 1-1 Financial Management Business Process Flow

The integration pack for financial management allows an organization to synchronize their suppliers (service providers) and currency exchange rates between Oracle E-Business Suite and Oracle Transportation Management (OTM). It also integrates the invoices created in OTM and sends them to the Oracle E-Business Suite Payables system so that they can be accounted and settled in the financial system. The business processes support multiple payment methods and ensure that the payment is not duplicated for the same invoice.

The integration pack for financial management also allows an organization to synchronize their customer information from Oracle E-Business Suite to OTM. This customer information can be used in the bills created in OTM to send as Accounts Receivables to get the payment from the customer.

The financial management process integration sends a bill created in OTM to Oracle E-Business Suite Receivables for a product or service performed for the customers, matches it with the customer invoice, and sends the bill to the customer to receive the payment.

In addition, any accruals and reversals created in OTM are sent to Oracle E-Business General Ledger so they can be properly accounted.

1.4 Assumptions and Constraints

These are the assumptions and constraints for the Financials Management PIP:

• An operating unit cannot be mapped to multiple domains.

• Several operating units can be mapped to one domain.

• OTM and Oracle E-Business Suite applications are implemented before the implementation of this PIP.

• The same values for Siebel CRM business units should be created in Oracle E-Business Suite for operating units.

• Customers switching from one financials application to another require re-implementation of the integration pack.

Note:

Assumptions and constraints as applicable to process integrations are covered in the respective chapters.