1Introduction to Oracle Accounting Hub Cloud

This chapter contains the following:

Use the Define Oracle Fusion Accounting Hub Configuration for Rapid Implementation task list to streamline your setup configurations. The rapid implementation task list minimizes the time used to complete your key configurations and enables the day-to-day use of Oracle Accounting Hub Cloud applications.

The rapid implementation task list includes tasks that are:

  • Critical setup tasks.

  • Setup steps that are required by most users.

To create an implementation project that includes the Define Accounting Entry Configuration for Rapid Implementation task list, use the Manage Implementation Projects page in the Setup and Maintenance work area. You can modify the task list as needed 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 Oracle Fusion Accounting Hub offering task lists and tasks to your rapid implementation project.

Task Lists

This table contains the task lists included in the Define Oracle Fusion Accounting Hub Configuration for Rapid Implementation task list.

Task List Description

Define Enterprise Structures Configuration for Rapid Implementation

Define the enterprise structures configuration that includes financial and enterprise structures.

Define Financials Security Configuration for Rapid Implementation

Define the configuration for user and data roles set up.

Define Accounting Entry Configuration for Rapid Implementation

Define the accounting entry configuration that includes accounting transformation rules for transactions sourced from external applications.

Define Ledger Configuration for Rapid Implementation

Define the configuration that includes general ledger and intercompany.

Define Financial Reporting Center Configuration for Rapid Implementation

Define the configuration that includes set up for financial reporting and integration with planning and financial management applications.

Note: The Open First Period task is a required task and is part of the task list.

This example shows how to create an implementation project using the Oracle Fusion Accounting Hub rapid implementation task list.

This table contains a summarization of key decisions.

Decision to Consider In This Example

What Oracle Applications are included in this implementation?

The Oracle applications being implemented are:

  • General Ledger

  • Subledger Accounting

  • Financial Reporting Center

Are the set-up requirements unique to this organization?

No

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

Yes

Creating the Implementation Project

To create an implementation project, follow these steps:
  1. Select Navigator > Setup and Maintenance work area to open the Setup page. You must have the Manage Implementation Project privilege.

  2. From the Setup page, open the panel drawer and select Manage Implementation Projects.

  3. Click the Create icon.

  4. Enter a meaningful name and a brief description to describe your project.

  5. Optionally, assign the project to a user and specify a start date.

  6. Click Save and Open Project when you complete your selection.

  7. You can begin to assign the tasks to the appropriate users. Select and add the Define Fusion Accounting Hub Configuration for Rapid Implementation task list.

Overview of Oracle Accounting Hub Cloud Features

Oracle Accounting Hub Cloud provides a complete set of accounting tools and unparalleled access to financial data, including:

  • Oracle General Ledger features that provide:

    • Journal entry import and creation

    • Real time balances from a balances cube

    • Accounting controls

    • Close functionality

    • Cross-ledger intercompany balancing

    • Calculation Manager for the definition of allocation rules using complex formulas

    • Automatic generation of allocation journals

    • Enhanced journal approval

    • Year-end process management

  • Oracle Financial Reporting that provides:

    • Embedded balances cube functionality

    • Multidimensional, online analytical processing of financial information

    • Ability to slice and dice data across dimensions

    • Drill up, down, and across on any parent level within the chart of accounts

  • Accounting transformation enables you to create subledger accounting rules that provide flexible transformation of transaction and reference information from diverse, non-Oracle, industry applications into accurate, detailed, auditable accounting entries. The subledger accounting journals generated for non-Oracle applications are stored in a subledger accounting repository that is shared with the subledger accounting journals generated by Oracle Fusion Subledger Accounting for the subledgers such as Payables, Receivables, Assets and Inventory.

How Oracle Accounting Hub Cloud Works

The Oracle Accounting Hub Cloud process begins by using financial data from any or all of the following:

  • Non-Oracle source systems including transaction and reference information from industry-specific applications.

  • Oracle Fusion subledgers including subledger journals.

  • Oracle E-Business Suite, Oracle PeopleSoft, and Oracle JD Edwards general ledgers including account balances.

The Accounting Hub process ends with complete reporting and analysis solutions.

The Oracle Accounting Hub Cloud Components

The Accounting Hub contains the following components:

  • Accounting transformation to transform external source data.

  • Oracle General Ledger to enter and post journals including allocations.

  • Oracle Financial Reporting Center for reporting and analysis.

  • Integration with Oracle Planning and Budgeting Cloud and Oracle Financial Consolidation and Close Cloud.

This figure illustrates the Oracle Accounting Hub Cloud components.

This figure illustrates the Oracle Accounting Hub
Cloud components. It shows the flow of transactions from non-Oracle
external applications and Oracle Fusion Subledgers, through the accounting
transformation engine and repository. And then, the subledger accounting
journal entries are transferred to the Oracle General Ledger and into
the balances cube and tables. The figure also shows other integration
features of the Oracle Accounting Hub Cloud, which are described in
the text.

Oracle Accounting Hub Cloud for External Source Systems

Oracle Accounting Hub Cloud enables you to perform accounting transformations on external, non-Oracle source system data. It utilizes the same subledger accounting rules engine that is also used to flexibly create accounting for Oracle subledgers such as Payables and Receivables. Oracle Accounting Hub Cloud includes:

  • Registration of your external source systems, indicating what types of transactions or activities require accounting from those source systems.

  • Create a library of transaction and reference information that is used for defining accounting treatments.

  • Configurable accounting rules to define accounting treatments for transactions.

  • Accounting rules engine that combines transaction and reference information from source systems with accounting rules to create detailed journals stored in an accounting repository.

  • Detailed subledger accounting journal entry repository to enable audit and accounting reconciliation of balances.

  • Reports and user interface inquiries for analyzing accounting transformations.

  • Configurable analytical balances based upon source system or reference attributes.

Oracle General Ledger

The Oracle General Ledger combines traditional general ledger functionality with embedded Oracle Hyperion Essbase functionality. The general ledger functionality includes:

  • Journal entry creation, including updating of account balances cubes and tables.

  • Date effective trees for chart of accounts maintenance and financial reporting, including What If analysis.

  • Automatic balances cube creation from the chart of accounts configuration, simplifying implementation.

  • Preaggregated balances at every summarization level across each dimension of the chart of accounts and accounting periods to improve reporting performance.

  • Multidimensional analysis using dimensions, such as the chart of accounts, periods, and currency, to provide drill down and drill through functionally.

  • Drill to details and source ledger balances from summary balances.

  • Intelligence and analytics embedded within the context of a journal entry, enabling quick and accurate completion of the journal entry process. As journal entries are entered, a What If analysis to determine the impact of the unposted journals on account balances is displayed in the user interface. The What If analysis eliminates navigating to an inquiry page or running a report to verify the results.

  • Three balancing segments available in your chart of accounts for more detailed reporting.

  • Automatic intercompany balancing journal creation in both Subledger Accounting and General Ledger applications, ensuring proper recording of transactions across legal entities.

  • Calculation Manager rules using complex formulas to distribute revenue and costs throughout the organization for consistent periodic generation of allocation journal entries.

Financial Reporting Center

The Oracle General Ledger provides a Financial Reporting Center with robust financial reporting and analysis using data from your balances cubes. The dimensions contained in your chart of account segments become the direct source of multidimensional analysis. Direct links are maintained to your transactional data permitting comprehensive drill-down from journals to transaction details. Use the following tools for your reporting and analysis:

  • Financial Reporting to generate your reports.

  • Smart View to generate spreadsheet reports.

  • Oracle Transaction Business Intelligence to report using embedded analytics

  • General Accounting and Journals dashboards to perform online inquiry and dashboard publication

  • Account Monitor and Account Inspector to perform online multidimensional analysis of accounting balances

Accounting Hub fits into Oracle's broader enterprise performance management framework through integration with Oracle Planning and Budgeting Cloud and Oracle Financial Consolidation and Close Cloud. You can you can write budget from Planning and Budgeting Cloud to General Ledger or write the actual data from General Ledger to Planning and Budgeting Cloud. You can use the regular interface to load data from ERP to Financial Consolidation and Close Cloud.

Overview of Accounting Configuration Offerings

Use the Setup and Maintenance work area in Oracle Applications to manage the configuration of legal entities, ledgers, and reporting currencies. To create a legal entity or ledger, first create an implementation project. This implementation project can be populated by either adding a financials-related offering or one or more task lists.

Note: Setup tasks that are not related to the ledger or legal entity setup tasks are opened from either an implementation project or directly from the Setup and Maintenance work area.

The financial applications have two predefined implementations:

  • The Oracle Accounting Hub Cloud offering is used to add the General Ledger and Subledger Accounting application features to an existing Enterprise Resource Planning (ERP) source system to enhance reporting and analysis.

  • The Financials offering includes the General Ledger and Subledger Accounting application features and one or more subledger financial applications.

When adding an offering to an implementation project, update the tasks displayed by adding additional tasks.

Overview of Implementation Options for Oracle Accounting Hub Cloud

The Oracle Accounting Hub Cloud has two possible implementation scenarios that can be used separately or in conjunction with each other. These scenarios are:

  • Accounting for diverse business system events and transactions with configurable and auditable rule-based accounting transformations.

  • Expansion of financial reporting enabling creation of multidimensional, self-service reporting and analytics with real-time accounting information from a single source with flexible formatting options.

This figure illustrates Accounting Hub implementation scenarios.

This figure illustrates Accounting Hub implementation
scenarios. It shows the flow of transactions from non-Oracle external
applications and Oracle Fusion Subledgers, through the accounting
transformation engine and repository. And then, the subledger journal
entries are transferred to the Oracle General Ledger and into the
balances cube and tables. The figure also shows other integration
features of the Oracle Accounting Hub Cloud, which are described in
the text.

Accounting for Diverse Transactions

The Oracle Accounting Hub Cloud provides accounting for diverse business system events and transactions using configurable and auditable rule-based accounting transformations. The Accounting Hub process:

  • Begins with transactions and data from your non-Oracle, industry-specific subledgers and other general ledgers.

  • Generates accounting events using the Create Accounting process to create journals that can be posted to the Oracle General Ledger from specific subledgers and other general ledgers.

  • Ends with complete reporting and analysis solutions.

See the following for details on implementing this scenario: Define Accounting Transformation chapter in the Oracle Financials Cloud Implementing Accounting Hub guide.

Expansion of Financial Reporting

Oracle Accounting Hub Cloud enables creation of multidimensional, self-service reporting and analytics with real time accounting information from a single source with flexible formatting options. The Financial Reporting Center includes:

  • Predefined financial reports

  • Ability to create reports,

  • Flexible options for dissemination of such reports

  • Account Monitor and Account Inspector providing drill-down and pivot views of your balances

  • Oracle Hyperion Smart View providing spreadsheet analytics

  • Oracle Transaction Business Intelligence Oracle Business Intelligence Publisher provide key performance indicators (KPI), dashboards, and flexible reporting

For more information refer to the Using EPM with Oracle Financials Cloud link on the Books for Oracle Financials Cloud page of the Oracle Help Center at https://docs.oracle.com.

These sections describe the manual tasks that you must complete as part of the setup data export and import processes for the Oracle Accounting Hub Cloud offering.

This table contains manual tasks that must be completed as part of the setup data export and import processes for the Oracle Accounting Hub Cloud offering.

Section Description

Setup tasks performed before export

You must perform these tasks prior to initiating export processes for the Oracle Accounting Hub Cloud offering.

Setup tasks performed before import

You must perform these tasks prior to initiating import processes for the Oracle Accounting Hub Cloud offering.

Setup tasks performed after import

Setup data for these tasks is not imported from the source instance. Review and perform the manual setups steps on the target instance as required.

Refer to the Oracle Applications Cloud Using Functional Setup Manager guide for the steps to perform setup data export and import processes.

Setup Tasks Performed Before Export

Prior to initiating export processes from the source instance, you must verify and update setup for this task. Required to ensure that data is correctly imported into the target instance.

This table contains setup tasks performed before export.

Activity Name Task Name Setup Steps

Define Chart of Accounts

Manage Account Combinations

Account combinations are not exported from the source instance. Before exporting, navigate to the Manage Chart of Accounts Instance page on the source instance and verify that dynamic insertion is enabled for your charts of accounts. As long as dynamic insertion is enabled, account combinations are created automatically as needed on the target instance.

Setup Tasks Performed Before Import

Prior to initiating import processes into the target instance, you must verify and update setup for this task.

This table contains setup tasks performed before import.

Activity Name Task Name Setup Steps

Define Common Applications Configuration for Oracle Accounting Hub Cloud

Define Implementation Users

The import process does not include implementation users and roles associated with them.

For more information, see Oracle Fusion Middleware Enterprise Deployment Guide for Oracle Identity Management (Oracle Fusion Applications Edition).

Setup Tasks Performed After Import

Setup data for the following tasks are not imported. Review these tasks for relevance to your implementation. For relevant tasks, open the corresponding setup pages from your implementation project to create the setup on the target instance as needed.

This table contains setup tasks performed after import.

Activity Name Task Name

Define General Ledger Options

  • Manage Journal Approval Rules

  • Manage Document Sequences

Define Document Sequences

Manage Document Sequences

Define Approval Management for Financials

  • Manage Task Configurations for Financials

  • Manage Approval Groups for Financials

Setup data for the following tasks are not imported from the source instance. Review the steps in the following table to create the setup on the target instance as needed.

This table contains steps to create the setup on the target instance as needed.

Activity Name Task Name Setup Steps

Define Accounting Transformation Configuration

Import Supporting Reference Initial Balances

This task enables upload of initial subledger balances for supporting references. These balances are not imported from the source instance, but can be loaded directly to the target instance.

For more information, see Oracle Financials Cloud Implementing Accounting Hub Guide, Define Accounting Transformation.

Define Financial Reporting

Configure Smart View Client for Users

Manually reconfigure the Smart View client to point to the production instance.

For more information about configuring the Smart View client for users, refer:

  • Oracle Financials Cloud Implementing Accounting Hub Guide, Define Financial Reporting

  • The Using EPM with Oracle Financials Cloud link on the Books for Oracle Financials Cloud page of the Oracle Help Center at https://docs.oracle.com

Define Financial Reporting Center Configuration

Define Essbase Database Connection in Workspace

Manually reconfigure the Essbase database connection in Hyperion Workspace.

For more information about configuring the Hyperion Workspace Database Connection, see Oracle Financials Cloud Implementing Accounting Hub Guide, Define Financial Reporting,

Define Financial Reporting Center Configuration

Configure Financial Reporting Studio Client for Users

Manually reconfigure the Financial Reporting Studio client to point to the production instance.

For more information about configuring the Financial Reporting Studio client for users, refer:

  • Oracle Financials Cloud Implementing Accounting Hub Guide, Define Financial Reporting

  • The Using EPM with Oracle Financials Cloud link on the Books for Oracle Financials Cloud page of the Oracle Help Center at https://docs.oracle.com

Define Financial Reporting

Create Financial Statements

Export the financial report definitions from Workspace in the source environment.

When exporting, you can export a single report, multiple reports in a .zip file, or an entire folder structure in a .zip file.

  1. Navigator > General Accounting: Financial Reporting Center > select link: Open Workspace for Financial Reports.

  2. Navigate to Applications > BI Catalog.

  3. Navigate to File > Export.

  4. Save the file to the local desktop.

Import the file into Workspace in the target environment.

  1. Navigator > General Accounting: Financial Reporting Center > select link: Open Workspace for Financial Reports.

  2. Navigate to Application > BI Catalog.

  3. Navigate to File > Import.

  4. Select the file you had saved during the export.

If you import the folder structure, the entire structure from the source instance is imported into the existing structure on the target instance. This could result in some redundant folders. In this case, you can reorganize child folders in the structure on the target instance and delete any unneeded folders.

Define Period Close Components

Manage Allocations and Periodic Entries

Export the allocation rules, rule sets, variables, and runtime prompt definitions from Calculation Manager in the source environment.

When exporting, you can export at the application level or at a single rule or rule set level.

Note: You must export and import rules for each application on the Essbase server separately.
  1. Navigator > General Accounting: Journals > select link: Create Allocation Rules.

  2. Navigate to File > Export.

  3. Save the file to the local desktop.

Import the file into Calculation Manager in the target environment.

  1. Navigator > General Accounting: Journals > select link: Create Allocation Rules.

  2. Select the specific application in which to import the rules.

  3. Navigate to File > Import.

  4. Select the file you saved during the export.

Define Hyperion Financial Management Integration

Define Hyperion Financial Management Configuration

Manually import the rules using the Oracle Enterprise Performance Management Life Cycle Management tool.

For more information, refer to the Using EPM with Oracle Financials Cloud link on the Books for Oracle Financials Cloud page of the Oracle Help Center at https://docs.oracle.com.

Define Hyperion Financial Management Integration

Define ERP Integrator Configuration for Hyperion Financial Management

Manually import the rules using the Oracle Enterprise Performance Management Life Cycle Management tool.

For more information, refer to the Using EPM with Oracle Financials Cloud link on the Books for Oracle Financials Cloud page of the Oracle Help Center at https://docs.oracle.com.

Define Budget Configuration

Define Budget Configuration in Hyperion Planning

Manually import the rules using the Oracle Enterprise Performance Management Life Cycle Management tool.

For more information, refer to the Using EPM with Oracle Financials Cloud link on the Books for Oracle Financials Cloud page of the Oracle Help Center at https://docs.oracle.com.

Define Budget Configuration

Define ERP Integrator Configuration for Hyperion Planning

Manually import the rules using the Oracle Enterprise Performance Management Life Cycle Management tool.

For more information, refer to the Using EPM with Oracle Financials Cloud link on the Books for Oracle Financials Cloud page of the Oracle Help Center at https://docs.oracle.com.

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

Bill Management

Manage system options and user registrations.

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.

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.

Collections

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

Customer Billing

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

Customer Payments

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

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.

Financial Reporting Center

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

Fixed Assets

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

General Ledger

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

Intercompany

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

Joint Venture Management

Manage the distribution of joint venture revenue and costs among joint venture partners while preserving essential data for tracking and auditing.

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.

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.

Revenue Management

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

Revenue Recognition

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

Suppliers

Configure options for suppliers and supplier data.

Transaction Tax

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

U.S. Federal Financials

Manage the financial management system options specifically defined for U.S. Federal agencies.