1. Implementing Accounting Hub
  2. How Oracle Accounting Hub Cloud Works

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.