3Implement Oracle Financials Cloud

This chapter contains the following:

Overview of Implementing Financials

To start your Financials implementation, use the Application Implementation Consultant role (ORA_ASM_APPLICATION_IMPLEMENTATION_CONSULTANT_JOB) to opt into the offerings that meet your business requirements. Refer to the Oracle Applications Cloud Using Functional Setup Manager guide to manage the opt-in and setup of your offerings.

Financials Offering

By using the Financials offering, you can configure how you manage financial flows, including assets, ledgers, cash cycle, invoices and payments, accounts receivable, collections, and the setup of subledger accounting and tax configuration.

The following table specifies the primary functional areas of this offering. For the full list of functional areas and features in this offering, use the Associated Features report that you review when you plan the implementation of your offering.

Functional Area Description

General Ledger

Manage ledgers, accounting configurations, journal sources and categories, and other related accounting setup. If applicable, opt into configuring journal approval email notifications.

Suppliers

Configure options for suppliers and supplier data.

Payables

Manage supplier invoice and payment options, payment terms, distribution sets, invoice tolerances, and procurement agents.

Payments

Manage payment systems, payment methods, formats, and payment process profiles. If applicable, opt into deriving a bank account number from IBAN.

Cash Management and Banking

Manage banks, bank branches, and bank accounts. Additionally, define reconciliation matching rules, bank statement transaction creation rules, parse rules, transaction codes, and transaction type mapping. Furthermore, configure your cash positioning and cash forecasting options.

Transaction Tax

Manage tax configuration, including tax regimes, taxes, and tax rates.

Expenses

Manage expense report templates, approval rules, and conversion rates and policies. If applicable, opt into using corporate cards for expenses, processing of expense receipt imaging, or integration with travel.

Fixed Assets

Manage asset locations, calendars, books and categories, along with depreciation methods.

Receivables

Manage the required setups to enable Receivables for transactions and receipts: Receivables system options; Receivables activities; AutoAccounting rules; remit-to addresses; and statement cycles.

Customer Billing

Manage Receivables transactions and customer billing: AutoInvoice, payment terms, transaction types, transaction sources, memo lines, balance forward billing, and recurring billing.

Revenue Recognition

Manage revenue recognition for Receivables: revenue policies and revenue contingencies.

Customer Payments

Manage Receivables customer payments and receipts: receipt classes and methods, AutoCash rules, Application rules, AutoMatch, Lockbox.

Collections

Manage aging methods and collectors, as well as collections preferences, scoring data points, and strategy tasks.

Revenue Management

Manage system options for revenue management, selling price profiles, hierarchies, resources, and Trading Community source systems.

Intercompany

Manage Intercompany transaction processing within Financials, intercompany balancing and reconciliation.

Budgetary Control and Encumbrance Accounting

Manage control budgets and encumbrance accounting, along with data access for users. Public sector customers typically use this functional area.

Financial Reporting Center

Manage the financial tools to report and analyze accounting data: Financial Reporting Center, Smart View, Financial Reporting Studio, and Workspace.

Bill Management

Manage system options and user registrations.

Use the Define Financials Configuration for Rapid Implementation task list to streamline your setup configuration to focus only on the critical setup steps. The rapid implementation task list minimizes the time needed for you to complete your key setups and enable the day-to-day use of Oracle Financials Cloud.

The rapid implementation task list includes tasks that are:

  • Critical setup tasks for initial setup.

  • Setup steps that are required by most users.

To create an implementation project that includes the Define Financials Configuration for Rapid Implementation task list, use the Manage Implementation Projects page in the Setup and Maintenance work area. The application implementation manager can modify the task list and assign and track each task.

Note: You are not restricted to only the setup configuration in the rapid implementation task list. You can manually add the standard Financials offering task lists and tasks to your rapid implementation project to change and update your setup.

Task Lists

The Define Financials Configuration for Rapid Implementation task list contains the following task lists. These task lists incorporate setup tasks related to specific functional areas within your Oracle Financials Cloud implementation.

Task List Description

Define Common Financials Configuration for Rapid Implementation

Define the common configuration for Oracle Financials Cloud rapid implementation, which includes enterprise structures and banks setup.

Define Transaction Taxes for Rapid Implementation

Configure tax setup according to local and international tax requirements.

Define Financials Security Configuration for Rapid Implementation

Define the configuration for user and data roles setup for Oracle Financials Cloud rapid implementation.

Define Ledger Configuration for Rapid Implementation

Define the configuration for General Ledger rapid implementation that includes general ledger and intercompany.

Define Financial Reporting Center Configuration for Rapid Implementation

Define the configuration for Financial Reporting Center rapid implementation that includes setup for financial reporting and integration with planning and financial management applications.

Define Invoicing and Payments Configuration for Rapid Implementation

Define invoicing and payments configuration for Payables rapid implementation.

Define Expenses Configuration for Rapid Implementation

Define corporate expense policies and rules, expense types, and expense report approval rules for Expenses rapid implementation.

Define Fixed Assets Configuration for Rapid Implementation

Define the configuration for Assets rapid implementation.

Define Receivables Configuration for Rapid Implementation

Define the configuration for Receivables rapid implementation.

Note: The Open First Period task is a required task and is also part of the Define Financials Configuration for Rapid Implementation task list.

Configuring Rapid Implementation Tasks Lists

Based on the applications you are implementing, you can streamline your task lists even more. For example, when you are only implementing:

  • Payables, Expenses, and Assets: Delete the Define Receivables Configuration for Rapid Implementation task lists from your implementation project:

  • Receivables: Delete the following task lists from your implementation project:

    • Define Invoicing and Payments Configuration for Rapid Implementation

    • Define Expenses Configuration for Rapid Implementation

    • Define Fixed Assets Configuration for Rapid Implementation

This example shows how to create an implementation project for the Oracle Financials Cloud rapid implementation task list.

The following table summarizes key decisions for this scenario:

Decision to Consider In This Example

What applications are included in this implementation?

The Oracle Financials Cloud applications being implemented are:

  • General Ledger

  • Financial Reporting Center

  • Payables

  • Receivables

  • Expenses

  • Assets

  • Cash Management

  • Tax

Are the setup requirements unique to this organization?

No

Can the rapid implementation task lists and tasks be used for this implementation?

Yes

Creating the Implementation Project

  1. Click Navigator > Setup and Maintenance.

  2. On the Setup page, open the panel tab and click Manage Implementation Projects.

  3. On the Implementation Projects page, click the Create icon in the Search Results table.

  4. On the Create Implementation Project: Enter Basic Information page, enter Implementation Project-FIN_Rapid_Implementation in the Name field.

  5. Click in the Description field to automatically update the name in the description.

  6. Click the Save and Open Project button.

  7. On the Implementation Project: Implementation Project-FIN_Rapid_Implementation page, click Add in the Task Lists and Tasks table.

  8. On the Select and Add: Task Lists and Task dialog box, select Task list in the Search field.

  9. Enter %Rapid Implementation% in the Name field. Use wildcard characters if you do not know the exact name of the task list or task.

  10. Click Search.

  11. Select the Define Financials Configuration for Rapid Implementation row.

  12. Click Done.

  13. On the Implementation Project: Implementation Project-FIN_Rapid_Implementation page, expand the task list to see the task lists and tasks associated with your implementation project.

  14. Click Done.

Common Financials Configuration

Overview of Geographies

Setting up your geography structure and master geographies correctly in the Trading Community Model is critical to the proper use and management of Oracle Enterprise Resource Planning (ERP) Cloud applications.

The geography structure and master geography data is shared across multiple product families and applications. Address validation ensures complete and valid master address data across all location entities across product applications. In addition, complete and valid master data is critical for accurate transaction tax calculation.

You can either define your geography structure and corresponding master geographies manually or import these geography entities. You can use the:

  1. Manage Geographies page

  2. Manage File Import Activities task

For more information about managing your geographies, see the Define Geographies section in the Define Enterprise Structures chapter in the Oracle ERP Cloud Implementing Common Features for Financials and Project Portfolio Management guide on Oracle Help Center (https://docs.oracle.com).

Manage Geographies

Use the Manage Geographies page to manually define your geography structure, hierarchy, mapping, and validation. Manually define your geographies when you have a simple geography requirement with a limited number of geographies within an individual country.

Manage File Import Activities

You can upload the geography structure and hierarchy using the Manage File Import Activities task. Once you upload your geography data successfully, use the Manage Geographies page to:

  • Validate your data

  • Enable geography validation

  • Enable tax validation

Set the address validation for applicable countries to Error to ensure that you haven't created any invalid or incomplete master address data for any location entities. The accuracy of master address data is critical to successful implementations.

Use data import when you have more complex geography requirements, such as for the United States and Canada.

Implement Enterprise Structures

The Define Common Financials Configuration for Rapid Implementation task list provides a framework for developing and managing your chart of accounts, ledgers, legal entities, and business units to meet your accounting and reporting requirements.

Setting Up Enterprise Structures

The tasks in the following list relate to the setup of enterprise structures. These tasks are the basic setup steps. They may be interspersed with other tasks that aren't required to implement Oracle Financials Cloud. In the Setup and Maintenance work area, create an implementation project that includes the Define Financials Configuration for Rapid Implementation task list. That task list includes the Define Common Financials Configuration for Rapid Implementation task list. Each task is performed by the Application Implementation Consultant.

Note: The following tasks are also included in the Define Enterprise Structures Configuration for Rapid Implementation task list, which you can add to your implementation project in the Setup and Maintenance work area.

All documentation references are from the Oracle Financials Cloud Implementing Enterprise Structures and General Ledger guide.

  1. Manage geographies.

    • Perform the task Manage Geographies to enable the list of values for address fields in user interfaces.

    • See: Geographies chapter: Define Geographies: Overview

  2. Create chart of accounts, ledger, legal entities, and business units in a spreadsheet.

    • Perform the task Create Chart of Accounts, Ledger, Legal Entities, and Business Units in Spreadsheet to create a spreadsheet for entering the primary ledger and all accompanying enterprise structures. Spreadsheet entry includes the chart of accounts with segment values and account hierarchies, associated business units, and associated legal entities. In addition, the spreadsheet includes the rules for generating sequential identifiers for transactions recorded in the application and certain setup objects along with their accounting specifications for various modules of Oracle Financials Cloud.

    • See: Financial Structures chapter

      • Enterprise Structures Rapid Implementation: Overview

      • Create Chart of Accounts, Ledger, Legal Entities, and Business Units in Spreadsheets: Explained

      • Create Chart of Accounts, Ledger, Legal Entities, and Business Units in Spreadsheets: How They're Processed

  3. Upload the chart of accounts.

    • Perform the task Upload Chart of Accounts to load the chart of accounts structure, including segments and value sets, from the spreadsheet.

    • See: Financial Structures chapter: Create Chart of Accounts, Ledger, Legal Entities, and Business Units in Spreadsheets: How They're Processed

  4. Upload the ledger, legal entities, and business units.

    • Perform the task Upload Ledger, Legal Entities, and Business Units to load key enterprise structures, including the ledger, legal entities, and business units that are dependent on the chart of accounts.

    • See: Financial Structures chapter: Create Chart of Accounts, Ledger, Legal Entities, and Business Units in Spreadsheets: How They're Processed.

  5. Create cross-validation rules.

    • Perform the task Create Cross Validation Rules in Spreadsheet for the chart of accounts to determine the account combinations that users can create dynamically as they enter transactions or journal entries.

    • See: Financial Structures chapter

      • Cross-Validation Rules in General Ledger: Overview

      • Cross-Validation Rules: Explained

      • Cross-Validation Rules: Points to Consider

      • Cross-Validation Rules Spreadsheet: Explained

      • Creating Cross-Validation Rules in a Spreadsheet: Worked Example

After performing the enterprise structures tasks, run the Enterprise Structures Setup Report and diagnostic tests for the enterprise structures setup data.

  • See: Enterprise Structures Introduction chapter

    • Enterprise Structures Setup Report: Explained

    • Running Diagnostic Tests for Enterprise Structures Setup Data: Explained

How You Implement Cash Management

The Oracle Fusion Cash Management product provides a framework for developing and managing your banks, bank branches, and bank accounts.

Setting Up Cash Management

The tasks in the following list relate to the setup and uploading of banks, bank branches, and bank accounts. These are the basic tasks that appear in the Setup and Maintenance work area.

For setting up cash management, each task is performed by the Application Implementation Consultant. All documentation references are from the Oracle Financials Cloud Implementing Payables Invoice to Pay guide, Cash Management and Banking Configuration chapter.

  1. Create banks, branches, and accounts in a spreadsheet.

    • Perform the task Create Banks, Branches, and Accounts in Spreadsheet to create your bank, branch, and account information.

  2. Upload banks, branches, and accounts.

    • Perform the task Upload Banks, Branches, and Accounts to import your bank, branch, and account information into Cash Management.

    • See:

      • Cash Management Rapid Implementation: Overview

Implement Tax

Oracle Fusion Tax provides a single-point solution for managing your transaction and withholding tax requirements.

Oracle Fusion Tax:

  • Uniformly delivers tax services to all core Oracle Fusion application business flows through one application interface.

  • Provides features for uploading third-party tax partner content.

  • Is configurable and scalable for adding and maintaining country-specific tax content.

Setting Up Oracle Fusion Tax

The Define Taxes for Rapid Implementation task list provides the required and most frequently used setup tasks for implementation scenarios. Using spreadsheets, you can upload your tax setups to create tax regimes, taxes, tax rates, and tax rules.

You can use the standard Define Tax Configuration task list for:

  • The ongoing maintenance of your tax setup.

  • Limited tax configurations that can't be set up or updated using the rapid implementation approach.

To set up Oracle Fusion Tax, the Application Implementation Consultant or Tax Manager must perform the following tasks:

  1. Manage tax regimes.

    • Perform the Manage Tax Regimes task to create and maintain tax regimes for the taxes in each country and geographic region where a separate tax or collection of taxes apply.

      You can use the Tax Configuration Workbook to upload all common tax regime setups as well as your organization specific setups, such as tax regime subscriptions.

      You can also use the individual Tax Regimes and Tax Regime Subscriptions spreadsheets to exclusively create tax regimes and tax regime subscriptions.

    • See the following topics::

      • Tax Configuration Workbook: Explained

      • Creating Tax Setup Using the Tax Configuration Workbook: Worked Example

      • Creating Tax Setup Using Tax Partner Content in the Tax Configuration Workbook: Worked Example

      • Tax Implementation Workbook: Explained

      • Creating Tax Setup Using the Tax Implementation Workbook: Worked Example

      • Creating a Tax Regime Using the Manage Tax Regimes Spreadsheet: Worked Example

  2. Run the jurisdiction and rates upload program.

    • For SaaS (Oracle Cloud) implementations, run the Import Tax Configuration Content job.

    • Refer to the Tax Configuration Content Upload Program: How It Is Processed topic.

  3. Manage taxes.

    • Perform the Manage Taxes task to create and maintain details for the taxes of tax regimes.

      You can use the Tax Configuration Workbook to upload all common tax setups.

      You can also use the individual Taxes spreadsheet to create taxes for a tax regime or a collection of tax regimes. Additionally, you can use the individual Tax Accounts spreadsheet to create tax account assignments.

    • See the following topics:

      • Tax Configuration Workbook: Explained

      • Creating Tax Setup Using the Tax Configuration Workbook: Worked Example

      • Creating Tax Setup Using Tax Partner Content in the Tax Configuration Workbook: Worked Example

      • Creating Tax Setup Using the Tax Implementation Workbook: Worked Example

  4. Manage tax rates and tax recovery rates.

    • Perform the Manage Tax Rates and Tax Recovery Rates task to create and maintain details for tax rates and tax recovery rates.

      You can use the Tax Configuration Workbook to upload all common tax rate and tax recovery rate setups.

      You can also use the individual Tax Rates, Tax Rate Accounts, Tax Recovery Rates, and Tax Recovery Rate Accounts spreadsheets to create:

      • Tax statuses

      • Tax jurisdictions

      • Tax rates

      • Tax recovery rates

      • Tax accounts

    • See the following topics:

      • Tax Configuration Workbook: Explained

      • Creating Tax Setup Using the Tax Configuration Workbook: Worked Example

      • Creating Tax Setup Using Tax Partner Content in the Tax Configuration Workbook: Worked Example

  5. Manage tax rules.

    • Perform the Manage Tax Rules task to create and maintain tax rules that define the conditions under which the exceptions to the default taxability apply.

      You can use the Tax Implementation Workbook to upload organization-specific tax rule setups.

      You can also use the individual Tax Rules spreadsheet to create tax rules details.

    • See the following topics:

      • Tax Implementation Workbook: Explained

      • Creating Tax Setup Using the Tax Implementation Workbook: Worked Example

  6. Manage tax registrations.

    • Perform the Manage Tax Registrations task to create and maintain tax registration information related to a party's transaction tax obligation with a tax authority for a tax jurisdiction where it conducts business.

      You can use the Tax Implementation Workbook to upload your organization-specific tax registrations.

    • Refer to the Tax Registrations: Explained topic.

  7. Manage tax exemptions.

    • Perform the Manage Tax Exemptions task to create and maintain tax exemptions to reduce or increase the tax rate applied to a transaction.

    • Refer to the Tax Exemptions: Explained topic.

  8. Manage simulator transactions.

    • Perform the Manage Simulator Transactions task to verify tax configuration for taxes that are enabled for simulation or for both simulation and transactions by processing real-time transactions without affecting active data.

    • Refer to the Tax Simulator: Explained topic.

Ledger Configuration

Implement General Ledger

The Define Ledger Configuration for Rapid Implementation and Define Financial Reporting Center Configuration for Rapid Implementation task lists provide a framework for developing and managing general ledger features including ledger sets, journal approval rules, and the Financial Reporting Center.

Setting Up General Ledger

The tasks in the following list relate to the setup of General Ledger. These tasks are the basic setup steps. They may be interspersed with other tasks that aren't required to implement Oracle Financials Cloud. In the Setup and Maintenance work area, create an implementation project that includes the Define Financials Configuration for Rapid Implementation task list. That task list includes both the Define Ledger Configuration for Rapid Implementation and Define Financial Reporting Center Configuration for Rapid Implementation task lists.

For setting up general ledger, each task is performed by the Application Implementation Consultant.

Define Ledger Configuration for Rapid Implementation

All documentation references are from the Oracle Financials Cloud Implementing Enterprise Structures and General Ledger guide, unless otherwise noted.

The following figure shows the general categories of ledger configuration: intercompany balancing, journal processing, period close processing, ledger sets, data access sets, and intercompany balancing.

This figure shows the general categories of ledger
configurations.
  1. Manage ledger sets.

    • Perform the task Manage Ledger Sets to create, review, and update collections of ledgers intended for batch processing or financial reports.

    • See: Ledgers chapter

      • Ledgers and Subledgers: Explained

      • Ledgers: Points to Consider

      • Financial Ledgers: How They Fit Together

  2. Manage data access sets.

    • Perform the task Manage Data Access Sets to create, review, and update collections of ledgers intended for data security.

    • See: Financial Structures chapter

      • General Ledger Security: Explained

      • Data Access Set Security: Overview

      • Data Access Set Security: Examples

  3. Create segment value security rules.

    • Perform the task Create Segment Value Security Rules in Spreadsheet to define segment value security for value sets.

    • See: Financial Structures chapter

      • General Ledger Security: Explained

      • Segment Value Security: Explained

      • Segment Value Security: Examples

  4. Manage intercompany balancing rules.

    • Perform the task Manage Intercompany Balancing Rules to define rules to assign intercompany receivables and intercompany payables accounts for transactions unbalanced by legal entity or management entity.

    • See: Intercompany Setup chapter

      • Intercompany Balancing Rules: Explained

      • Intercompany System Options: Explained

      • Intercompany Organization Configuration: Example

      • Customer and Supplier Assignment: Explained

  5. Manage journal approval rules.

    • Perform the task Manage Journal Approval Rules to review and update rules to route journal entries through an approval process.

    • See: General Ledger Options chapter

      • Approving Journals: Points to Consider

      • Creating Journal Approval Rules

  6. Manage settings for automatic journal posting.

    • Perform the task Manage AutoPost Criteria Sets to define, review and update settings for automatic journal posting.

    • See: General Ledger Options chapter

      • Creating an AutoPost Criteria Set: Worked Example

      • Manually Generating the AutoPost Process: Examples

  7. Manage settings for automatic journal reversal.

    • Perform the task Manage Journal Reversal Criteria Sets to define, review, and update settings for automatic journal reversal.

    • See: General Ledger Options chapter, Automatic Journal Reversals: How They're Processed

  8. Manage accounting and reporting sequences.

    • Perform the task Manage Accounting and Reporting Sequences to define, review, and update sequencing definitions for journal posting and period close.

    • See: General Ledger Options chapter

      • Accounting and Reporting Sequences: Overview

      • Defining Journal Sequences Manually: Explained

      • What happens if I enable sequencing in the rapid implementation spreadsheet?

  9. Manage allocations and periodic entries.

    • Perform the task Manage Allocations and Periodic Entries to create, review, and update allocation and periodic definitions and journal entries. Generate journal entries from the allocation and periodic definitions.

    • See: Allocations and Periodic Entries chapter

      • Allocation and Periodic Entries: Overview

      • Calculation Manager: Overview

      • Oracle Essbase Balances Cubes: Overview

      • Creating an Allocation Rule and Generating Allocations

      • Recurring Journals: Overview

  10. Manage revaluation definitions.

    • Perform the task Manage Revaluations to review and update existing calculations of unrealized gains and losses on foreign currency transactions, and to define new calculations.

    • See: Period Close chapter

      • Revaluation Process: Explained

      • Accounting for Unrealized Gain or Loss on Revaluation: Explained

      • Income Statement Accounts Revaluation Rule: Explained

      • Revaluing Across Multiple Balancing Segments: Worked Example

  11. Manage historical rates.

    • Perform the task Manage Historical Rates to review and update existing currency historical conversion information, and to create conversion information.

    • See: Financial Structures chapter

      • Entering Daily Rates Using the Daily Rates Spreadsheet: Worked Example

      • Updating Currency Rates: Worked Example

  12. Open the first period.

    • Perform the task Open First Period to open the first accounting period so you can begin recording transactions.

    • See: Ledgers chapter: Opening First Period: Overview

    • See: Period Close chapter: Close Monitor: Overview

Define Financial Reporting Center Configuration for Rapid Implementation

All documentation references are from the Oracle Financials Cloud Implementing Enterprise Structures and General Ledger guide, Financial Reporting chapter, unless otherwise noted.

  1. Define Financial Reporting Center configuration:

    • Perform the tasks in the Define Financial Reporting Center Configuration task list to define and manage technical configuration options for the Financial Reporting Center.

    • See:

      • Financial Reporting Center: How It Works

      • Setting Up Your Financial Reporting Center: Critical Choices

  2. Define Essbase database connections.

    • Perform the task Define Essbase Database Connections in Workspace to define database connections to connect to Essbase in Workspace.

    • See: Setting Up Your Financial Reporting Center: Critical Choices

  3. Configure the Financial Reporting Studio client:

    • Perform the task Configure Financial Reporting Studio Client for Users to install the Financial Reporting Studio client on users' computers to create financial reports.

    • See: Setting Up Your Financial Reporting Center: Critical Choices

  4. Configure the Smart View client.

    • Perform the task Configure Smart View Client for Users to install the Smart View client on users' computers to perform balance inquiry.

    • See: Setting Up Your Financial Reporting Center: Critical Choices

  5. Create financial statements.

    • Perform the task Create Financial Statements to create, review, and update report definitions for management and statutory financial statements.

    • See: Creating a Financial Report

  6. Define budget scenarios.

    • Perform the task Define Budget Scenarios to define scenarios to track budgets for different periods or forecasts.

    • See: Budget Configuration chapter

      • Budget Uploads: Overview

      • Importing Budget Data from a Flat File: Explained

      • Importing Budget Data from a Spreadsheet: Explained

You use Intercompany balancing rules to generate the accounts required to balance journals that are out of balance by legal entity or primary balancing segment values. Specify the intercompany receivables and intercompany payables accounts that you want to use as the template for building the intercompany receivables and intercompany payables accounts. The intercompany balancing feature then uses these rules to generate the accounts of the balancing lines it creates.

Journals lines are first summarized by the legal entity and are balanced by the legal entity. Since a legal entity can have many primary balancing segment values, it's possible that a journal could have multiple lines for a legal entity with different primary balancing segment values. In that case, when intercompany balancing is done, the lowest primary balancing segment value within each legal entity in the journal is used. After this, balancing occurs across balancing segment values within each legal entity.

These same rules are also used to generate the intercompany receivables account and intercompany payables account of transactions entered in the Intercompany module.

The intercompany balancing rules are also used to generate the intercompany receivables account for the provider side of an intercompany transaction. And balancing rules are also used to generate the intercompany payables account for the receiver side of an intercompany transaction.

Caution: After you create an Intercompany balancing rule, you can't modify them. But you can end date an existing rule and create a new rule.

Defining Intercompany Balancing Rules

You can define intercompany balancing rules at these levels:

  1. Primary balancing segment

  2. Legal entity

  3. Ledger

  4. Chart of accounts

The rules are evaluated in the order shown. For example, you can define a Primary Balancing Segment rule and a Legal Entity level rule. If both rules can be used to balance a particular journal, the Primary Balancing Segment rule is used, as it has a higher precedence.

You have flexibility in defining your intercompany balancing rules. You can have a simple setup in which you define one rule for your chart of accounts. This rule is used for all intercompany balancing for all ledgers that use this chart of accounts. Alternatively, you can have a more granular set of rules. For example, define a different rule for each legal entity and one chart of accounts rule to cover any gaps. You can gain even more granularity by defining rules for specific journal and category combinations or intercompany transaction types.

Using Chart of Accounts Rules for Intercompany

Use chart of accounts rules for intercompany balancing. You have flexibility in defining your intercompany balancing rules with the setup of a single chart of accounts rule to use for all ledgers that use this chart of accounts. When you create a chart of accounts rule, you specify the chart of accounts, intercompany receivables, and intercompany payables accounts you want to use, as well as the source and category. It is recommended that the intercompany receivables account be an asset type account, and the intercompany payables account be a liability type account.

You can define rules that are applied to a specific source and category, such as Payables and Invoices. Or a specific intercompany transaction type, such as Intercompany Sales. Alternatively, you can choose to create rules for all sources and categories by selecting the source of Other and the category of Other.

Intercompany Balancing then evaluates the journal source and journal category combination in determining which rule to use for balancing. This is the order of precedence.

  • Specific journal source and journal category

  • Specific journal source and journal category of Other

  • Journal source of Other and specific journal category

  • Journal source of Other and journal category of Other

Additional Intercompany Balancing and Clearing Company Options

Additional Intercompany Balancing and Clearing options are used to balance the second balancing segment or the third balancing segment or both, when a transaction is unbalanced by one of these segments but is already balanced by the primary balancing segment. This option is defined for a ledger but you can create rules for various Source and Category combinations.

Additional Intercompany Balancing and Clearing options include these settings:

  • Intercompany Receivables and Intercompany Payables accounts: You can use as the accounts as the template to build balancing accounts for balancing segment 2 and balancing segment 3 when the journal is already balanced by primary balancing segment.

  • Summarization options: You can choose to summarize lines within a legal entity before balancing lines are generated by choosing the Summary Net option. Alternatively choose the Detail options so lines aren't summarized before balancing within a legal entity. Note that summarization always applies to balancing lines generated in a cross legal entity scenario.

  • Clearing company options: Oracle recommends to always set clearing company options to handle many-to-many journals. This avoids balancing failing during General Ledger Posting or Subledger Accounting Create Accounting process.

Clearing Company Options

You can choose to set clearing company options to balance a many-to-many journal. Set these options to manage your clearing company balancing.

  • Clearing Company Condition: Choose when to use a clearing company.

    • Use clearing company only for intracompany journals.

    • Use clearing company for all many-to-many journals.

    • Error out if many-to-many journal. The default value for this option.

  • Clearing Company Source: Choose how the clearing company value is derived for your balancing lines, from these options:

    • Default clearing balancing segment value.

    • Manually entered clearing balancing segment value. Note that if you select Manually entered clearing balancing segment value, then you must manually enter a value in the create journals screen. This option doesn't work for subledger accounting entries as they don't have a field on the user interface to enter this value.

  • Clearing Company Value: If you selected Default clearing balancing segment value for Source, you must select a primary balancing segment value in this field. This value is used to balance your intracompany or many-to-many journals.

This topic provides examples of intercompany balancing rules and the intercompany balancing lines generated. These rules are used to generate the accounts needed to balance journals that are out of balance by legal entity or primary balancing segment values.

Intercompany Balancing Rules Precedence

In this example the legal Entity InFusion Textiles intercompany manufacturing activities are tracked separately from its non-manufacturing activities. In order to achieve this legal entity level rules are defined specifically between the legal entity InFusion Textiles and the two manufacturing legal entities, InFusion Products (East) and InFusion Products (West). A chart of accounts rule is created to cover all other intercompany activities.

Setup

  • InFusion USA Chart of Accounts as shown in the following table.

Segment Name Company (CO) Cost Center (CC) Division (DIV) Account (ACCT) Intercompany (IC)

Segment Qualifier

Primary Balancing Segment

Second Balancing Segment

Third Balancing Segment

Account

Intercompany Segment

  • Ledger, Legal Entity, Primary Balancing Segment Value Assignments as shown in the following table.

Ledger Legal Entity Primary Balancing Segment Value

InFusion USA

InFusion Farms

3100, 3200, 3300, 3400, 3500

InFusion USA

InFusion Textiles

4000

InFusion USA

InFusion Products (East)

5000

InFusion USA

InFusion Products (West)

6000

InFusion USA

 

1000, 9000

  • Chart of Accounts Rule as shown in the following table.

Rule Number Chart of Accounts AR Account AP Account Source Category Transaction Type

1

InFusion USA Chart of Accounts

1000 - 000 - 0000 - 13050 - 0000

1000 - 000 - 0000 - 21050 - 0000

Other

Other

None

  • Legal Entity Level Rule as shown in the following table.

Rule No. From Legal Entity To Legal Entity AR Account AP Account Source Category Transaction Type

2

InFusion Textiles

InFusion Products (West)

1000 - 000 - 0000 - 13020 - 0000

1000 - 000 - 0000 - 21020 - 0000

Other

Other

None

3

InFusion Textiles

InFusion Products (East)

1000 - 000 - 0000 - 13030 - 0000

1000 - 000 - 0000 - 21030 - 0000

Other

Other

None

  • Journal Balancing

    • Journal before Balancing as shown in the following table.

Line Line Type Legal Entity CO CC DIV ACCT IC Debit Credit

1

Expense

InFusion Farms

3100

100

1200

52330

0000

150

 

2

Expense

InFusion Products (East)

5000

100

1200

52340

0000

200

 

3

Expense

InFusion Products (West)

6000

200

1300

52345

0000

300

 

4

Liability

InFusion Textiles

4000

500

1300

40118

0000

 

650

  • Journal Balancing

    • Journal after Balancing as shown in the following table.

Uses Rule Line Line Type Legal Entity CO CC DIV ACCT IC Debit Credit

 

1

Expense

InFusion Farms

3100

100

1200

52330

0000

150

 

 

2

Expense

InFusion Products (East)

5000

100

1200

52340

0000

200

 

 

3

Expense

InFusion Products (West)

6000

200

1300

52345

0000

300

 

 

4

Liability

InFusion Textiles

4000

500

1300

40118

0000

 

650

1

5

IC AR

InFusion Textiles

4000

500

1300

13050

3100

150

 

1

6

IC AP

InFusion Farms

3100

100

1200

21050

4000

 

150

3

7

IC AR

InFusion Textiles

4000

500

1300

13030

5000

200

 

1

8

IC AP

InFusion Products(East)

5000

100

1200

21050

4000

 

200

2

9

IC AR

InFusion Textiles

4000

500

1300

13020

6000

300

 

1

10

IC AP

InFusion Products (West)

6000

200

1300

21050

4000

 

300

Invoicing and Payments Configuration

How You Implement Payables and Payments

To get started with Oracle Fusion Payables and Oracle Fusion Payments, the Invoicing and Payments Configuration for Rapid Implementation task list provides a framework for managing setups for Oracle Fusion Procurement that are required to set up Payables, as well as the setup steps of common options, distribution sets, and invoice tolerances for Payables and the setup steps of disbursement system options, payment methods, and payment process profiles for Payments.

Setting Up Payables and Payments

The tasks in the following list relate to the setup of Payables and Payments.

For setting up Payables and Payments, each task is performed by the Application Implementation Consultant. References to help topics in the following tasks are from the following publications:

  • Oracle Financials Cloud Implementing Payables Invoice to Pay

    • General Payables Options chapter, Manage Common Options for Payables and Procurement section

    • Payables Configuration chapter

    • Disbursements chapter

  • Oracle Procurement Cloud Implementing Procurement

    • Define Purchasing Configuration chapter, Define Procurement Agents section

  • Oracle Procurement Cloud Using Procurement

    • Manage Supplier Information chapter, Manage Supplier Profiles section

  1. Configure Procurement business function, procurement agents, and suppliers.

    • Perform the task Configure Procurement Business Function, Procurement Agents, and Suppliers, which includes configuring:

      • The procurement business function for the procurement business unit to specify procurement document control, document defaults, document numbering, and related settings.

      • Procurement agent access to information, such as purchasing documents and suppliers.

      • Suppliers, sites, and other supplier-related information.

    • See: Define Procurement Agents section

      • Create Procurement Agent: Critical Choices

    • See: Manage Supplier Profiles section

      • Supplier Model: Explained

      • Supplier Import Process: Explained

      • Supplier Sites and Supplier Site Assignments: Explained

  2. Manage common options for Payables and Procurement.

    • Perform the task Manage Common Options for Payables and Procurement to set the controls and default values that are used by both Payables and Procurement, such as the default liability account and whether to accrue expense items at time of receipt or at period end.

    • See: Manage Common Options for Payables and Procurement section

      • Common Options for Payables and Procurement: Critical Choices

      • Default Distributions: Explained

      • Offset Segments: Critical Choices

      • Accruing Expense Items: Critical Choices

    Note: You can skip this step if you have used the Rapid Implementation spreadsheet for General Ledger to create the ledger, legal entities, and business units.
  3. Manage distribution sets.

    • Perform the task Manage Distribution Sets to define a distribution set, which is a list of accounts with or without percentages. When you create an invoice that's not associated with a purchase order, you can enter the distribution set name to automatically create the invoice distributions with a predefined set of accounts. If the distribution set has percentages, the invoice line amount is automatically distributed to the accounts, otherwise you must enter the amounts manually.

    • See: Payables Configuration chapter

      • Distribution Sets: Explained

  4. Manage invoice tolerances.

    • Perform the task Manage Invoice Tolerances to define acceptable variances between invoice, purchase order, and receipt information. You can define both percentage-based and amount-based tolerances. Invoices that exceed the specified tolerances are placed on hold during the invoice validation process.

    • See: Payables Configuration chapter

      • Invoice Tolerances: Explained

  5. Manage disbursement system options.

    Note: Payments provides predefined setups for Steps 5 to 7. You don't need to modify the predefined setups unless you want to change disbursement system options, or configure different payment methods or payment process profiles.
    • Perform the task Manage Disbursement System Options to manage payment processing options at the enterprise and business unit level.

  6. Manage payment methods.

    • Perform the task Manage Payment Methods to define or manage payment methods and to attach or update validations that are assigned to them. See:

      • Payment Methods: Explained

      • Payment Method Defaulting: Explained

      • Setting Up User-Defined Validations for Payment Methods or for Payment Files: Worked Example

  7. Manage payment process profiles.

    • Perform the task Manage Payment Process Profiles to define or manage payment process profiles, which are entities that determine the payment processing type, grouping of installments, grouping of payments, and the definition of usage rules based on payment methods, disbursement bank accounts, business units, and currencies. See:

      • Payment Process Profiles: Explained

Expenses Configuration

Implement Expenses

The Define Expenses Configuration for Rapid Implementation task list provides a framework for developing and managing your system options, expense report templates, approval rules, and conversion rates and policies.

The tasks in the Define Expenses Configuration for Rapid Implementation task list enable expense entry, approval, and reimbursement processing in Expenses.

Setting Up Expenses

To set up Expenses, each task is performed by the Application Implementation Consultant. References to help topics in the following tasks are from the Oracle Financials Cloud Implementing Expenses: Expense Policies and Rules chapter.

  1. Manage expenses system options.

    • Perform the task Manage Expenses System Options to define setup options for managing expense entry and processing for all business units.

    • Confirm that the default settings are aligned with your business practices.

  2. Manage expense report templates.

    • Perform the task Manage Expense Report Templates to define expense types applicable to your company and group them into expense templates. Expense templates are defined by business units. The expense templates available in expense report entry is determined by the business unit of the employees.

    • Specify receipt requirements when you define expense types.

    • See:

      • Expense Templates: Points to Consider

      • Can expense types be used across expense templates?

      • Configuring Expense Policies: Points to Consider.

  3. Manage expense approval rules.

    • Perform the task Manage Expense Approval Rules to define expense report approval rules based on your company's approval policies.

    • Modify the predefined rules as needed.

    • See:

      • Configuring Approval Rules: Explained

      • Defining Approval Rules: Explained

    Note: To enable audit of expense reports, you must define audit rules in addition to approval rules.
  4. Manage conversion rates and policies.

    • Perform the task Manage Conversion Rates and Policies to select the conversion rate type for each business unit.

    • See: Configuring Expense Policies: Points to Consider

Fixed Assets Configuration

Implement Assets

Get started with Oracle Fusion Assets and enable your reporting and accounting capabilities using the Define Fixed Assets Configuration for Rapid Implementation task list. This task list provides a framework to develop and manage your Assets flexfields, system controls, fiscal years, locations, calendars, prorate conventions, asset books, and asset categories.

This figure shows the major setup tasks you complete
to implement Assets.

Set Up Assets

The tasks in the following list relate to the setup of Oracle Fusion Assets. These are the basic steps for setup. These tasks appear in the setup task list in the Setup and Maintenance work area. However, in your task list the tasks may be interspersed with other tasks that you don't need to perform before you can use Oracle Fusion Financials.

For setting up Assets, each task is performed by the Application Implementation Manager.

Define Fixed Assets Configuration for Rapid Implementation

All documentation references are from the Oracle Financials Cloud Implementing Assets guide, unless otherwise noted.

  1. Create Fixed Assets Configuration in Spreadsheet.

    • Perform the task Create Fixed Assets Configuration in Spreadsheet to define your initial Fixed Assets configuration or rapidly implement Oracle Fusion Asset categories, system controls, depreciation calendars, prorate conventions, and books.

    • See: Oracle Applications Cloud Configuring and Extending Applications guide.

  2. Update Fixed Assets Configuration in Spreadsheet.

    • Perform the task Update Fixed Assets Configuration in Spreadsheet to update or add to your Oracle Fusion Asset categories, locations, and books.

  3. Upload Fixed Assets Configuration in Spreadsheet.

    • Perform the task Upload Fixed Assets Configuration in Spreadsheet to load the key flexfield structure, system controls, calendar, prorate convention, asset book, location combination, and category assignment to the book created or updated in the spreadsheet.

Receivables Configuration

Implementation Procedures for Receivables and Payments

The Receivables task list provides a framework for developing and managing your accounts receivable environment. This includes the necessary setups in Oracle Receivables and the related setups in Oracle Payments.

Note: Credit card services are currently not available in Oracle Cloud implementations.

Define the Receivables and Payments Configuration

The tasks in the following list relate to the setup of Receivables and of Payments for Receivables. These are the basic steps for setup.

For setting up Receivables and Payments for Receivables, each task is performed by the Application Implementation Consultant. All documentation references are from these chapters in Oracle Financials Cloud Implementing Receivables Credit to Cash:

  • Define Common Accounts Receivable Configuration

  • Manage Receivables System Options

  • Define Customer Billing Configuration

  • Define Customer Payments

  • Configure Payment System Connectivity

  • Define Funds Capture

  • Define Customer

  1. Manage Receivables system options.

    • Perform the task Manage Receivables System Options to manage the basic settings of your Receivables environment.

    • See: Manage Receivables System Options chapter:

      • Updating System Option Records: Critical Choices

      • Using Header Level Rounding: Example

      • Tax Invoice Printing Options

      • Tuning Segments: Explained

      • Log File Message Levels: Explained

      • Transaction and Statement Delivery E-Mail Subject Line: Examples

      • Transaction and Statement Delivery Using E-Mail: How It Works

  2. Manage Receivables activities.

    • Perform the task Manage Receivables Activities to set up default accounting information for all activities in accounts receivable other than transaction processing and receipt processing.

    • See: Define Common Accounts Receivable Configuration: Define Receivables Activities section:

      • Receivables Activity Types

      • GL Account Source

      • Tax Rate Code Source

  3. Manage AutoAccounting rules.

    • Perform the task Manage AutoAccounting Rules to set up default accounting information for Receivables transaction processing.

    • See: Define Customer Billing Configuration: Define AutoAccounting section:

      • AutoAccounting Account Types and Segment Values

      • AutoAccounting Structure: Points to Consider

      • Using AutoAccounting to Derive Accounting Flexfield Segments: Example

  4. Manage remit-to addresses.

    • Perform the task Manage Remit-to Addresses to assign remit-to addresses to Receivables transactions.

    • See: Define Customer Billing Configuration: FAQs for Remit-to Addresses section:

      • How can I use remit-to addresses?

      • How does AutoInvoice validate remit-to addresses?

      • How can I define a default remit-to address?

      • Why did the country appear?

      • Why do I verify the address?

  5. Manage memo lines.

    • Perform the task Manage Standard Memo Lines to define memo lines for line items that are not inventory items.

    • See: Define Customer Billing Configuration: Define Memo Lines section: Revenue Accounts and Memo Lines: Explained.

  6. Manage system security options.

    • Perform the task Manage System Security Options to enable the credit card and bank account encryption and masking.

    • See: Define Payments Security chapter: System Security Options: Critical Choices.

  7. Manage funds capture payment methods.

    • Perform the task Manage Funds Capture Payment Methods to define funds capture payment methods to enable customers to remit payments. Payments supports bank account transfers for automated funds capture processing.

  8. Manage funds capture process profiles.

    • Perform the task Manage Funds Capture Process Profiles to define profiles for funds capture processing with rules for authorization and settlement handling.

    • See: Define Funds Capture chapter: Funds Capture Process Profile: Explained.

  9. Manage internal payees.

    • Perform the task Manage Internal Payees to set up one or more business units that use a payment processor or gateway to receive funds from customers.

  10. Manage payment systems.

    • Perform the task Manage Payment Systems to define external organizations, such as banks or payment processors, that process funds capture and disbursement transactions.

    • See: Configure Payment System Connectivity chapter:

      • Validations: Critical Choices

      • Formats: Explained

      • Transmission Protocol: Explained

      • Transmission Configuration: Explained

      • Configuring Your Communication Channel to a Payment System: Explained

      • Payment System: Explained

      • Payment System Account: Explained

      • Importing a Security Credential File: Procedures

  11. Manage receipt classes and methods.

    • Perform the task Manage Receipt Classes and Methods to set up the steps required for receipts and to set up default accounting information for receipt processing.

    • See: Define Customer Payments: Define Receipt Classes and Methods section:

      • Remittance Methods and Clearance Methods

      • Automatic Receipt Processing: Points to Consider

      • Fund Transfer Error Handling: Explained

      • Remittance Bank Accounts: Explained

  12. Manage lockbox.

    • Perform the task Manage Lockbox to set up a lockbox to create receipts automatically from data supplied by your remittance bank.

    • See: Define Customer Payments: Define Lockbox section:

      • Lockbox Interface Table AR_PAYMENTS_INTERFACE_ALL

      • Match Receipts By Method: Explained

  13. Manage transmission formats for lockbox.

    • Perform the task Manage Transmission Formats for Lockbox to set up lockbox transmission formats. The transmission formats ensure that data is correctly transferred from your remittance bank.

    • See: Define Customer Payments: Define Transmission Formats for Lockbox section:

      • Validating the Lockbox File Transmission: How It Works

      • Lockbox Transmission Formats

      • Lockbox Transmission Format Record Types

      • Lockbox Transmission Format Field Types

  14. Manage statement cycles.

    • Perform the task Manage Statement Cycles to set up statements and statement cycles that determine when to send statements to your customers.

    • See: Define Common Accounts Receivable Configuration: Define Statements section:

      • Setting Up for Statements: Procedure

      • Statement Cycles: Example

  15. Create customer.

    • Perform the task Create Customer to create customer records for all organizations and persons with whom you do business.

    • See: Define Customer chapter: Define Customer Account section and Manage Customers section:

      • Customer Account Relationships: Explained

      • Customer Account Uses: Points to Consider

      • Customer Addresses: Points to Consider

      • Related Contact Sites: Explained

      • Customer and Party: Explained

      • Party Relationships: Explained

      • Customer Upload: How Data is Processed

      • Preparing Customer Data for Upload: Points to Consider

      • Validating Unique Values in the Customer Spreadsheet Upload: Examples

      • Customer Listing Report

  16. Manage approval limits.

    • Perform the task Manage Approval Limits to set approval limits for each of your users for specific transactions and amount ranges per currency.

    • See: Define Common Accounts Receivable Configuration: Define Approval Limits section: Approval Limits Document Types.

Workflow Rules in BPM

Overview of Creating Workflow Rules in Business Process Management

You create business rules with Oracle Business Process Management. For more details about creating business rules, see the Designing Business Rules with Oracle Business Process Management guide.

Advanced Features to Create Workflow Rules in Financials

Overview of Default Advanced Options for Rules with Parent and Child Attributes in BPM

Do you frequently have to create rules using parent and child attributes in BPM?

Then, the Advanced Rules feature is for you. After you enable the Default Advanced Options for Rules with Parent and Child Attributes feature, you can configure rules in the Basic mode using some of the options that were earlier available only in the Advanced mode with the At least one option as default.

Additionally, old options are renamed as listed in this table:

Old Option New Option

For each case where

All

There is a case where

At least one

There is no case where

None

Aggregation

Aggregation

Note: For rules created using the header attribute, the default option remains the same: For each case where.

Enable Default Advanced Options for Rules with Parent and Child Attributes in BPM

You can enable this feature by defining a profile option.

Here's how:

  1. Sign in as an implementor.

  2. In the Setup and Maintenance work area, go to the Manage Profile Options task.

  3. On the page, click Actions > New.

  4. On the Create Profile Option page, enter the following values:

  5. Click Save and Close.

  6. On the Manage Profile Options page, search for the newly created profile option and from the results, select it.

  7. In the Profile Option Levels section, for the Site level, select the Enabled and Updatable.

  8. Click Save and Close.

  9. In the Setup and Maintenance work area, go to the Manage Administrator Profile Values task.

  10. On the Manage Administrator Profile Values page, search for and select the profile option.

  11. In the Profile Values section, click Add. Enter the following values:

That's it! You have done the preliminary setup. Now, when you configure rules in BPM using the parent and child attributes, the default option is set to At least one.

FAQs

What happens when I create a new rule?

You can configure a new rule using line or distribution level attributes in basic mode. If you do this without editing an existing rule, the new rule is created using the At least one option. You can also edit the line and distribution attributes on an existing rule. In this case, the rule is created using the more advanced condition (For each case where option).

What happens if I edit an existing rule?

If you have enabled the feature and edited the existing rules, old options in the rules are renamed like this:

Old Option New Option

There's no case where

At least one

There's no case

None

Can I continue using the existing rules after enabling this feature?

Yes, your existing line and distribution level rules aren't impacted by the upgrade unless you edit them.