Creating Profiles

To create profiles for Account Analysis or Balance Comparison methods:

  1. From Home, select Application, and then Profiles.
  2. Click New (+) to create a New Profile.
  3. On the Properties tab, enter:
    • Account ID—The combination of segment values must be unique across profiles. The number of segments available is defined in system settings.

    • Profile Name—A second way to identify the profile. Names do not need to be unique. As a best practice, Oracle suggests using the name associated with the natural account segment and some other descriptor that identifies ownership of or responsibility for the profile.

    • Description

    • Active—Selected by default for profiles manually entered or imported. Clear this check box if you do not want this profile copied to a period.

    • Summary Profile—If selected, then the Profile is a Summary Profile. The Auto-Reconciliation configuration section is removed, and you can't edit balances.

      Included Accounts—This section enables administrators and power users to assign profiles to summary profiles. Non-summary profiles can be selected for addition to a summary profile.

    • Organizational Unit — Represents a hierarchical entity-type structure that you can use to model your organization. Define a separate organizational unit for each entity for which separate reporting is required, or for entities that require different configurations for any of the following: holidays, work days, or viewer or commentator assignments. Organizational Units are defined in system settings.

    • Format—Associates the profile with a format created by an administrator, determining the method of reconciliation and the information that the preparer must provide.

    • Method—The method associated with the format assigned to the profile.

    • Process—Associates the profile with a specific reconciliation process, for example, the balance sheet reconciliation process or the local GAAP reconciliation process. Processes are defined in system settings.

    • Risk Rating—Associates the profile with a risk rating. Risk ratings are defined in system settings, for example, High, Low, or Medium.

    • Account Type—Associates the profile with an account type. Risk Rating and Account Type are attributes that facilitate reporting – the values are defined by administrators and can be used on dashboards and list views to filter reconciliations.

    • Normal Balance—Identifies whether the profile is expected to contain a debit balance, a credit balance, or a debit or a credit balance. If the balance is different from the normal balance, then a warning is set on the reconciliation.

    • In Auto-Reconciliation Methods, select a method that describes the conditions that must be true for reconciliations configured with the auto-reconciliation method to qualify for auto-reconciliation. If any conditions are false, then auto-reconciliation fails, and the reconciliation status is set to Open so that the Preparer can manually prepare the reconciliation (for more information about auto-reconciliation failures, see Reason Codes for Auto-Reconciliation Failures:

      • For Account Analysis and Account Analysis with Transaction Matching:

        • Balance is zero required conditions:

          • If an account analysis format is assigned to the profile, then the profile can be enabled for the "Account has a 0 Balance" auto-reconciliation method.

          • If the balance associated with the reconciliation for a given period is 0, then the reconciliation is prepared and reviewed automatically for that period.

          • If the balance is not 0, then the reconciliation must be manually prepared and reviewed.

        • Balance is zero and no activity required conditions:

          • The Source System Balance is zero.

          • Source System Balance is the same as the Prior Reconciliation Source System Balance.

            Note:

            This last condition also means that a previous reconciliation source system balance must exist.

          When Auto-Reconciliation succeeds, the reconciliation status is set to Closed.

        • No activity required conditions:

          • If a previous reconciliation exists, the following conditions must be met:

            • The prior reconciliation status must be Complete.

            • The prior reconciliation Source System balance must be the same as the current reconciliation Source System balance.

            • The prior reconciliation format must be the same as the current reconciliation format

              Specifically:

              1. The Format ID used to create both the current and prior format instances must be the same.

              2. The current format instance must not contain mandatory attributes that do not exist in the prior format instance.

          • If a previous reconciliation does not exist, then the prior reconciliation Source System balance is presumed to be zero:

            • If the current period’s Source System Balance is also zero, then the reconciliation will be auto-reconciled.

            • If the current period’s Source System balance is not zero, then the reconciliation will not auto reconcile.

          When Auto-Reconciliation succeeds:

          • The reconciliation status is set to Closed

          • Explained Balance and Source System Adjustment transactions are copied from the prior reconciliation to the current reconciliation:

            • File Attachments and Comments associated with the transaction are copied

            • Age is recalculated by subtracting the Open Date from the new period end date (the period the transaction is being copied into)

            • The Aging Violation for that transaction is set if the age is greater than the Authorized age

            • The Aging Violation flag for the Reconciliation is set if one or more transactions of each type have an aging violation

          • Comments and Attachments that exist at the Reconciliation level are copied

        • Balance is within range required conditions:

          • A prior reconciliation must exist and the status of this reconciliation must be Complete.

          • The prior reconciliation format must be the same as the current reconciliation format. Specifically, the format ID used to create both the current and prior format instances must be the same, and the current format instance must not contain mandatory attributes that do not exist in the prior format instance.

          • The Source System Balance is more than or equal to the Balance Range (Low).

          • The Source System Balance is less than or equal to the Balance Range (High).

          When Auto-Reconciliation succeeds:

          • The reconciliation status is set to Closed

          • Explained Balance and Source System Adjustment transactions are copied from the prior reconciliation to the current reconciliation:

            • File Attachments and Comments associated with the transaction are copied

            • Age is recalculated by subtracting the Open Date from the new period end date (the period the transaction is being copied into)

            • The Aging Violation for that transaction is set if the age is greater than the Authorized age

            • The Aging Violation flag for the Reconciliation is set if one or more transactions of each type have an aging violation

          • Comments and Attachments that exist at the Reconciliation level are copied

        • Balance is within range and no activity required conditions:

          • A prior reconciliation must exist and the status of this reconciliation must be Complete.

          • The prior reconciliation format must be the same as the current reconciliation format. Specifically, the format ID used to create both the current and prior format instances must be the same, and the current format instance must not contain mandatory attributes that do not exist in the prior format instance.

          • Source System Balance is greater than or equal to the Balance Range (Low).

          • The Source System Balance is less than or equal to Balance Range (High).

          • Source System Balance – Prior Reconciliation Source System Balance = 0; The range can be a negative number.

            Note:

            This last condition also means that a prior reconciliation source system balance must exist.

          When Auto-Reconciliation succeeds:

          • The reconciliation status is set to Closed

          • Explained Balance and Source System Adjustment transactions are copied from the prior reconciliation to the current reconciliation:

            • File Attachments and Comments associated with the transaction are copied

            • Age is recalculated by subtracting the Open Date from the new period end date (the period the transaction is being copied into)

            • The Aging Violation for that transaction is set if the age is greater than the Authorized age

            • The Aging Violation flag for the Reconciliation is set if one or more transactions of each type have an aging violation

          • Comments and Attachments that exist at the Reconciliation level are copied

      • For Balance Comparison or Balance Comparison with Transaction Matching:

        • Balance is zero required conditions:

          • If a balance comparison format is assigned to the profile, then the profile can be enabled for the "Account has a 0 Balance" auto-reconciliation method.

          • If the source system balance associated with the reconciliation for a given period is 0, then the reconciliation is prepared and reviewed automatically for that period. The subsystem balance is not considered.

          • If the balance is not 0, then the reconciliation must be manually prepared and reviewed.

          Note:

          For Balance Comparison "Balance is zero" the Sub-system balance is not considered. If you would like it considered, you can use a custom rule to evaluate both source and subsystem balances. Alternatively, you can also consider using the "Balance match" condition since that will compare source and subsystem balances to ensure they are equal, or within your desired threshold.

          When Auto-Reconciliation succeeds, the reconciliation status is set to Closed.

        • Balance is zero and no activity required conditions:

          Note:

          For Balance Comparison format with No Activity, you can use a custom rule to obtain the correct results. For example, add a custom rule for Auto Submit Reconciliation with filter criteria: Difference (Reporting) equals 0 USD and Period Activity (Reporting) equals 0 USD.
        • No activity required conditions:

          Note:

          For Balance Comparison format with No Activity, you can use a custom rule to obtain the correct results. For example, add a custom rule for Auto Submit Reconciliation with filter criteria.
        • Balance match (% Tolerance): If a balance comparison format is assigned to the profile, then the profile can be enabled for the Balance Comparison where the Balances Match (% Tolerance) auto-reconciliation method.

          If this method is enabled, then a threshold value can be applied. The threshold percentage is multiplied against the source system balance to calculate a threshold value.

          • If the difference between the source system balance and the subsystem balance is less than the threshold value in a period, then the reconciliation is prepared and reviewed automatically for that period.

          • If the difference is greater than the threshold value, then the reconciliation must be manually prepared and reviewed.

          Enter the Match Balance Threshold (Percent) as a whole number between 1 and 100.

          When Auto-Reconciliation succeeds, the reconciliation status is set to Closed.

        • Balances match (# tolerance): The difference between the Source System Balance and the Subsystem Balance is less than or equal to a tolerance value; the tolerance value is specified on the profile. Enter the Match Balance Threshold (Number) tolerance amount.

          When Auto-Reconciliation succeeds, the reconciliation status is set to Closed.

    • Maximum Age Limits—Enter the number of Day(s) for the maximum age of reconciliation transactions:

      • Reconciliation Adjustments (applies to Account Analysis and Balance Comparison methods)

      • Balance Explanations (applies to Account Analysis method)

      Note:

      Aging Violation: If a value is provided and the reconciliation contains transactions where the age of the items (calculated as Period End Date minus Transaction Open Date) is greater than the value provided, then the transactions are flagged as aging violations, and an aging violation warning is set on the reconciliation.

    • Manually Enter Balances—Determine whether the source system or subsystem balances can be entered manually by the preparer on the reconciliation. Check these boxes only if balances are not being imported for the profile. Select one or both:

      • Enter Source System Balances Manually (applies to Account Analysis and Balance Comparison methods)

      • Enter Subsystem Balances Manually (applies to Balance Comparison method)