Introduction

This 30-minute tutorial provides a basic-level understanding of Oracle Fusion Cloud EPM Account Reconciliation.

Background

Reconciliations ensure that a company's financial accounts are validated by checking to see if the balance in the account is correct. Oracle Fusion Cloud EPM Account Reconciliation makes this process simpler and faster for companies by automating the process and helping users involved in the process collaborate effectively.

Prerequisites

Before starting this tutorial, you should have:

  • A working knowledge about Oracle Fusion Cloud EPM applications.
  • Access to Oracle Fusion Cloud EPM Account Reconciliation.

Creating a new application

To create a new application for Oracle Fusion Cloud EPM Account Reconciliation, perform the following steps:

  1. Log in to your instance.
    2. Login to your instance
  2. Under Account Reconciliation, click Select.
    3. Select Account Reconciliation

    An information message is displayed.

  3. Click OK.
    4. Click OK
  4. After 15-20 minutes, log in to the instance. Under Create a new application, click Start.
    5. Click Start

    The Oracle Fusion Cloud EPM Account Reconciliation home page is displayed.

Configuring Profile Segments

Note:

This is the most important configuration for your application. Ensure that you design your segments well. The fewer the segments, the better the design.

Profile Segments are the components of the Account ID used to uniquely identify profiles and reconciliations. To configure Profile Segments, perform the following steps::

  1. From the Account Reconciliation home page, click the Application card, and then select Configuration.
    2. Select Configuration
  2. Click the System Attributes tab.
    3. Click System Attributes
  3. The Profile Segments tab is open by default. Click New (New).
    4. Click New
  4. Create an Entity segment:
    • For Name, enter Entity.
    • For Type, select Text.
    • Select Sub-Segment.
    • For Target Dimension, select UD2.

    Click Save.

    Entity segment details
  5. Create an Entity segment:
    • Click New (New).
    • For Name, enter Account.
    • For Type, select Text.
    • Select Sub-Segment.
    • For Target Dimension, select UD3.

    Click Save.

    Account segment details

Configuring Risk Ratings

Risk Ratings are associated with profiles and reconciliations, and enable classification of profiles and reconciliations according to risk level. To configure risk ratings, perform the following steps:

  1. Select the Risk Rating tab, then click New (New).
    2. Click New
  2. For name, enter High. Click Save.
    3. Click Save
  3. Repeat steps 1 and 2 to create Medium and Low risk ratings.
    4. Set risk ratings

(Optional) Adding Frequencies

Frequencies determine how often reconciliations are prepared. In this section, you add daily, quarterly, and annual frequencies. On the Frequencies tab, within System Attributes, Monthly frequency is available by default, with Enable Amortization/Accretion selected. You can add frequencies by using the following steps:

  1. In the Frequencies tab:
    • Click Add (New)
    • For Name, enter Daily.
    • Deselect Enable Amortization/Accretion.
    • Click Save.
    Click New
  2. Click Add (Move up), and then click Save.
    3. Click Move Up
  3. Repeat step 1 and 2 to create frequencies named Quarterly and Annually.
    4. Click Save

    Note:

    The frequency order matters. Ensure that your frequencies are ordered from highest to lowest (Daily, Monthly, Quarterly, Annually), and that Amortization/Accretion is enabled only for the Monthly frequency.

Configuring Account Types

Account types enable classification of profiles, reconciliations, and adjustments according to a hierarchical structure. In this section, you configure account types for Assets, Liabilities, and Equity accounts:

  1. Select the Account Type tab, and then click Add (Add Siblings).
    2. Click Add Siblings
  2. Add an account type for assets:
    • Enter Asset, then click Add (Submit)
    • Click Save.
    Click Save
  3. Click Add (Add Siblings) and repeat step 2 to create account types for Liability and Equity.
    Create Liability and Equity

Setting default currencies

The currency buckets setup options determine how many currency buckets are set up for your company. In this section, you set the default currency for the Functional currency bucket:

  1. Click the Currencies tab.
    2. Click Currencies
  2. Click the Currency Buckets tab.
    3. Click Currency Buckets
  3. For the Functional bucket, select EUR (Euro) as the default currency. Click Save.
    4. Select EUR

Configuring periods

Periods are associated with reconciliations and determine the as-of date of the reconciliation. You can configure periods by using the following steps:

  1. Click the Periods tab.
    2. Click Periods
  2. Click New (New).
    3. Click New
  3. On the Properties tab, enter the following details, and then click Save and Close:
    • Start Date: Feb 1, 2025
    • End Date: Feb 28, 2025
    • Close Date: Mar 7, 2025
    • Daily: uncheck
    • Monthly: Check (Check)

    • Quarterly: uncheck
    Period Properties

Configuring profiles

Profiles contain functions like the current preparer and reviewer assignments, account descriptions, instructions, format assignments, risk ratings. You can configure profiles by using the following steps:

  1. Click the Profiles tab.
    2. Click Periods
  2. Click New (New).
    3. Click New
  3. On the Properties tab, define properties for the new profile:
    • Account ID: 101 11000
    • Name: US Bank Checking Account
    • Process: Balance Sheet
    • Risk Rating: High
    • Account Type: Asset
    • Normal Balance: Debit
    • Format: Current Assets
    • Auto Reconciliation Method: Balance is zero
    • Reconciliation Adjustments: 60

    Leave all other fields as the default setting, then click Save.

    Profile Properties
  4. Select the Workflow tab. Define the preparer for the profile
    • User Name: preparer’s user name (for this practice, use your own user name)
    • Frequency: Monthly
    • Start Day Offset: 0
    • Duration: 15

    Click Save and Close. Your profile should be visible with a Valid (Valid) icon.

    Click Save

    Note:

    Optionally, add Reviewer details by clicking Add (Add). Click Save and Close. Choose a different user as a Reviewer. Preparer and Reviewer cannot be the same user.

Setting up Data Integration for balance loads (One-time configuration)

Data Integration is the mechanism by which integration processes are performed in Oracle Fusion Cloud Enterprise Performance Management. For balance loads with Data Integration, a one-time configuration is needed for the Reconciliation Compliance Balances target application. Perform the following steps:

  1. On the home page, navigate to Application > Data Exchange.
    2. Click Data Exchange
  2. On the Data Integration page, click the Actions drop-down list and select Applications.
    3. Click Applications
  3. In the Reconciliation Compliance Balances row, click New (Actions), and then select Refresh Members. A message is displayed when the process is complete.
    4. Select Refresh Members
  4. In the Reconciliation Compliance Balances row, click New (Actions), then select Application Details.
    5. Click Application Details
  5. Click Add (Add).
    6. Click Add
  6. Define the dimension:
    • For Dimension Name, enter Entity.
    • For Dimension Classification, select Generic.
    • For Data Table Column Name, select UD2.
    • Click Save.
    Click Save
  7. Repeat steps 5 and 6 for the Account segment. Data Table Column Name for Account segment is UD3.
    8. Click Save

    Note:

    The Data Table Column Name should match with the Target Dimension option configured for the respective Profile Segments.
  8. Click Return (Return) and then click Close (Close).
    9. Click Save

Configuring Data Integration periods

Account Reconciliation uses periods as a fundamental building block for managing reconciliations, allowing for open, close, and lock periods. You can configure data integration periods by using the following steps:

  1. On the Data Integration screen, click the Actions drop-down list and select Period Mapping.
    2. Select Period Mapping
  2. On the Global Mapping tab, click Add (Add Mapping), enter the required details as shown below:
    • Period Key: 02/28/2025
    • Prior Period Key: 01/31/2025
    • Period Name: Feb-25
    • Target Year: 2025
    • Target Period - Month: February 2025

    Click Save.

    Click Add Mapping

    Note:

    The Period (Feb-25) configured under Period Name will appear within the POV Period drop-down in Data Integration.
  3. On the Application Mapping tab, with Reconciliation Compliance Balances as the target application, click Add (Add Mapping).
    4. Click Add Mapping
  4. Click the search (Search) icon under Period Key, select Feb-25, and click OK.
    5. Click OK
  5. Click Save. Click Close (Close) at the top right corner of the Period Mapping screen.
    Click Save

    Note:

    The Period (February 2025) configured under Target Period – Month should match with the corresponding period configured earlier with Account Reconciliation.

Creating an integration

An integration specifies how data is extracted from the source system and loaded into the target system. You can create an integration by performing the following steps:

  1. Copy the text below on to a Notepad, and save the file as GL_Balance.csv:

    2. Entity,Account,Currency,Ending Balance

    101,11000,EUR,200000

  2. On the Data Integration page, New (New) to open the Create Integration wizard.
    3. Click New
  3. On the General tab, define the general settings for this integration:
    • For Name, enter Load GL Balance.
    • For Location, select GLFile.
    • For Source, select File.
    • In the File Browser dialog, click Upload, then browse to select GL_Balance.csv.
    • For Target, select Reconciliation Compliance Balances.
    • For Category, select Functional.

    Click Save and Continue to proceed.

    General tab
  4. In the Map Dimensions tab, you can specify how source columns map to the dimensions in the target application. Enter the details provided below:
    • Account - Account
    • Ending Balance - Amount
    • Currency - Currency (Use to gear icon against any target dimension to add Currency)
    • Entity - Entity
    • Entity - Profile
    • constant("-") - Profile
    • Account - Profile

    Click Save and Continue to proceed.

    Map Dimensions tab
  5. In the Map Members tab, click the Add (Add) and enter the following details, then click OK:

    6. Member Mapping for Profile, Entity and Account:

    • Source==: *
    • Target: *
    • Processing Order: zDefault

    Member Mapping for Source Type:

    • Source==: *
    • Target: source system
    • Processing Order: SRC
    Map Members tab
  6. To save the integration, click the Save drop-down and select Save and Close.
    7. Click Save and Close

Importing balances into Account Reconciliation

You can import balances by following these steps:

  1. Click Applications, then select Periods.
    2. Select Periods
  2. For February 2025, click Actions (Actions) and then select Import Data.
    3. Select Import Data

    Note:

    You can also create reconciliations directly from the Periods page. For this example, we are using the Profiles page.
  3. To add new balances, click New (New).
    4. Run Integration
  4. The New Data Load Execution window is displayed. Enter the required details, select the correct location, and then click the OK button.
    5. New Data Load Execution
  5. Click Refresh (Refresh) to check if the balances have been imported successfully.
    6. New Data Load Execution
  6. Select the Profiles tab. Click Actions, then select Create Reconciliations.
    7. Select Create Reconciliations
  7. Select February 2025, then click Apply.
    8. Click Apply
  8. Select the Periods tab. For February 2025, Actions (Actions), then select Set Status, then select Open.
    9. Click Apply

Preparing a reconciliation

You prepare reconciliations by reconciling differences between source system and subsystem balances, by explaining account balances, and by monitoring period-to-period variances in account balances. In this section, you will prepare the reconciliation by explaining account balances, through the following steps:

  1. From the home page, click Reconciliations. Click US Bank Checking Account to open the account.
    2. Click 101-11000 - US Bank Checking Account
  2. Click the Balance Explanations tab.
    3. Click Balance Explanations
  3. Click New (New).
    4. Run Integration
  4. Enter the following details:
    • Short Description: Vision Corp Investment
    • Transaction Date: 2/28/25
    • Amount: 200000

    Click Save, and then click Submit.

    Balance Explanation
  5. At the confirmation message, click Yes.
    6. Click Submit

(Optional) Reviewing a reconciliation

If you added a reviewer user to your profile, follow these steps to review the reconciliation:

  1. Log in as the user you added as a reviewer.
    2. Login as a Reviewer
  2. From the home page, click Reconciliations. Click US Bank Checking Account to open the account.
    3. Open the Reconciliation
  3. Review the reconciliation for unexplained differences.

    4. (Optional) Click Approve to approve the reconciliation or click Reject to reject it.

    Click Approve