1

Introduction to Oracle Cloud:

Financials Implementation for R13

Copyright © 2018, Oracle and/or its affiliates. All rights reserved.

Who is speaking to you today?
Today, it’s me, Chris Venezia… from
Platform Technology Solutions (“PTS”),
Oracle Development’s partner engagement team.

Later in the week, you’ll hear from my

colleague, Sreeni Devireddy.

.. and you are …?

Copyright © 2017, Oracle and/or its affiliates. All rights reserved. 3-2
2
 2

Introducing Oracle Cloud Navigation

Copyright © 2018, Oracle and/or its affiliates. All rights reserved.

Oracle Cloud Strategy

SaaS

PaaS

IaaS

Copyright © 2017, Oracle and/or its affiliates. All rights reserved. 3-4
Oracle Cloud Applications: Product Families

• Financial Management
• Human Capital Management
• Supply Chain Management
• Project Portfolio Management
• Procurement
• Customer Relationship Management
• Enterprise Governance, Risk, and Compliance Management

Copyright © 2018, Oracle and/or its affiliates. All rights reserved. 1-5
Financial Management - Flexible Financial Architecture

Multiple Budgeting &

Consolidation Ledgers Forecasting

Centralized Common Modules

Accounting Legal Banking Tax Intercompany

Subledgers

External
Systems Payables Receivables Assets Expenses

Copyright © 2017, Oracle and/or its affiliates. All rights reserved. 3-6
 3

Financials Setup Overview

Copyright © 2018, Oracle and/or its affiliates. All rights reserved.

What is Functional Setup Manager?

Plan Opt In

Functional Setup Manager provides an

integrated, end-to-end applications
Maintain setup and administration process.
Setup

Deploy

Copyright © 2017, Oracle and/or its affiliates. All rights reserved. 3-8
Job Roles

The following job roles are required to access information within Oracle Fusion Functional
Setup Manager:
• Application Implementation Manager
• Application Implementation Consultant

Copyright © 2017, Oracle and/or its affiliates. All rights reserved. 3-9
Rapid Implementation Task List

Define Common Financials Configuration for Rapid Implementation

• Manage Geographies
• Create Chart of Accounts, Ledger, Legal Entities, and Business Units in Spreadsheet
• Upload Chart of Accounts
• Upload Ledger, Legal Entities, and Business Units
• Create Cross-Validation Rules in Spreadsheet
• Create Banks, Branches, and Accounts
• Manage Tax Regimes
• Run Jurisdiction and Rates Upload Program
• Manage Taxes
Note: This is a sample and not a complete list of tasks.

Copyright © 2017, Oracle and/or its affiliates. All rights reserved. 3 - 10

 6

Configuring Enterprise Structures

Copyright © 2018, Oracle and/or its affiliates. All rights reserved.

Business Units Overview

Copyright © 2017, Oracle and/or its affiliates. All rights reserved. 3 - 12

Reference Data Sets
EBS – Reference data and transactional data partitioned by OU
Operating Unit Partitioned Tables

Reference
Data

Operating Unit

Transactional
Data

Copyright © 2017, Oracle and/or its affiliates. All rights reserved. 3 - 14

Reference Data Sets
Financials Cloud- Separation of Reference Data from Organizational Partition

Reference Data Set Partitioned Tables

Reference Reference
Data Data Set

Operating Unit Partitioned Tables

Transactional Business Unit

Data

Copyright © 2017, Oracle and/or its affiliates. All rights reserved. 3 - 15

 Sharing Setup Data

Fusion: Reference Data (Setup) can be shared across BUs

Example: Receivables US
Legal Entity
Payment Terms

BU East BU West

Payment Terms: EAST Payment Terms: COMMON Payment Terms: WEST

• Immediate • 2/10 Net 30 • Net 15
• Net 30
• Net 45

Copyright © 2017, Oracle and/or its affiliates. All rights reserved. 3 - 16

Reference Data Set: Examples

Application Reference Data Object Method of Data Sharing

Payables Payment Terms Assignments to multiple sets, no common

values allowed
Receivables Remit-to Addresses Assignment to one set only, with common
values
Receivables Payment Terms Assignment to one set only, with common
values
Tax Tax Classification Codes Assignment to one set only, with common
values
Assets Depreciation Ceilings Assignment to one set only, no common
values allowed
Assets Depreciation Methods Assignment to one set only, with common
values

Copyright © 2017, Oracle and/or its affiliates. All rights reserved. 3 - 17

 7
Configuring General Ledger
Components

Copyright © 2018, Oracle and/or its affiliates. All rights reserved.

Define Enterprise Structures

Copyright © 2017, Oracle and/or its affiliates. All rights reserved. 3 - 19

Sharing Ledger Components Across Oracle Applications

Many components of an accounting configuration are shared with other Oracle Fusion
Applications.

Copyright © 2017, Oracle and/or its affiliates. All rights reserved. 3 - 24

 Financial Reporting Structures – Chart of Accounts (CoA)
Example Journal Entry to illustrate multi-segment Chart of Accounts

Segments

Company Line of Natural Cost Product Intercompany Debit Credit

Business Account Center Counterparty
101 10 12100 000 000 000 200
101 10 41000 462 111 000 100
101 10 41000 463 111 000 100

Code Combination, also known as the “Account”

Copyright © 2017, Oracle and/or its affiliates. All rights reserved. 3 - 25

2
Chart of Accounts Components

Copyright © 2017, Oracle and/or its affiliates. All rights reserved. 3 - 26

Account Combinations

• Create entire account combinations for your chart of accounts using a spreadsheet.
• Typically, create account combinations when dynamic insertion is disabled to force users
to only use predefined account combinations.
• Create only prevalidated account combinations.

Copyright © 2017, Oracle and/or its affiliates. All rights reserved. 3 - 27

Cross-Validation Rules

• Prevent the creation of invalid account combinations by setting up cross-validation rules.

• Define cross-validation rules before entering account combinations.
• Use cross-validation rules in combination with dynamic insertion.

Copyright © 2017, Oracle and/or its affiliates. All rights reserved. 3 - 28

Dynamic Combination Creation Allowed

• Enable this feature to permit users to create new account combinations as they enter
data.
• If the feature is not enabled, you can enter only new account combinations of segment
values using the Manage Account Combinations page.
• Cross-validation rules are important even if this feature is not enabled to prevent
creation of invalid combinations accidentally.

Copyright © 2017, Oracle and/or its affiliates. All rights reserved. 3 - 30

Defining Hierarchies

• A given segment in the chart of accounts can have multiple hierarchies.

• Each hierarchy can have multiple versions.
• Financial results from any accounting period can be analyzed by using any version of
any account hierarchy.

Copyright © 2017, Oracle and/or its affiliates. All rights reserved. 3 - 31

Account Hierarchy Example

Copyright © 2017, Oracle and/or its affiliates. All rights reserved. 3 - 32

 3
Configuring General Ledger
Components

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

General Ledger Architecture

Copyright © 2017, Oracle and/or its affiliates. All rights reserved. 3 - 34

Define Ledger Components

Copyright © 2017, Oracle and/or its affiliates. All rights reserved. 3 - 35

Manage Primary Ledgers

Copyright © 2017, Oracle and/or its affiliates. All rights reserved. 3 - 36

Specify Ledger Options

Copyright © 2017, Oracle and/or its affiliates. All rights reserved. 3 - 37

Define Secondary Ledgers

Copyright © 2017, Oracle and/or its affiliates. All rights reserved. 3 - 38

Secondary Ledgers: Scenarios

If the primary and secondary ledgers use different:

• Charts of accounts: The chart of accounts mapping is required to instruct the system
how to propagate journals from the source to the target chart of accounts.
• Accounting calendars: The accounting date is used to determine the corresponding
nonadjusting period in the secondary ledger. The date mapping table provides the
correlation between dates and nonadjusting periods for each accounting calendar.
• Ledger currencies: Currency conversion rules are required to instruct the system how to
convert the transactions, journals, or balances from the source representation to the
secondary ledger.

Copyright © 2017, Oracle and/or its affiliates. All rights reserved. 3 - 39

Secondary Ledgers: Conversion Levels

Copyright © 2017, Oracle and/or its affiliates. All rights reserved. 3 - 40

Secondary Ledger Example

• You maintain a secondary ledger for your International Financial Reporting Standards
(IFRS) accounting requirements.
• Your primary ledger uses US Generally Accepted Accounting Principles (GAAP).
• You decided to select the subledger level for your IFRS secondary ledger.

ANSWER

Copyright © 2017, Oracle and/or its affiliates. All rights reserved. 3 - 41

Secondary Ledger Example Conclusion

Use an Adjustment Only Level Secondary Ledger instead.

• Because most of the accounting is identical between US GAAP and IFRS, this is a more
powerful solution.
• You do not need to perform a difference comparison because all your entries are in the
adjustment ledger.
• Your secondary ledger contains only the adjustment journal entries and balances
necessary to convert your US GAAP accounting to the IFRS accounting, which uses a
fraction of the resources that are required by full subledger-level secondary ledger.
• A subledger-level secondary ledger would provide more functionality than you need in
this example.

Copyright © 2017, Oracle and/or its affiliates. All rights reserved. 3 - 42

Chart of Accounts Mapping Feature

• Enables you to correlate a source chart of accounts to a target chart of accounts to allow
for creating journals using an alternative chart of accounts.
• Uses segment rules, account rules, or a combination of both.
• Provides the posting program with the directions needed to propagate general ledger
entries from the primary ledger to the secondary ledger.
• Directs balance transfer programs for balance-level secondary ledgers and cross-ledger
transfers to copy balances from one ledger to another ledger.

Copyright © 2017, Oracle and/or its affiliates. All rights reserved. 3 - 43

Manage Reporting Currencies

Copyright © 2017, Oracle and/or its affiliates. All rights reserved. 3 - 44

Reporting Currencies: Conversion Levels

Copyright © 2017, Oracle and/or its affiliates. All rights reserved. 3 - 45

Review and Submit Accounting Configuration

Navigate to the Review and Submit Accounting Configuration page from the Define
Accounting Configurations task list in the Setup and Maintenance work area.
• Select your ledgers and click the Submit button.
• A green check mark in the Status column shows that your configuration is completed
and confirmed.
Note: This process runs by primary ledger and processes related secondary ledgers,
reporting currencies, and legal entities.

Copyright © 2017, Oracle and/or its affiliates. All rights reserved. 3 - 46

Balance Cubes: Overview

• Are created automatically when an accounting configuration is submitted for a ledger

based on the chart of accounts and calendar combinations.
• Store your financial balances in a multidimensional model to enable interactive financial
reporting and analysis.
• Preaggregate your balances at every possible point of summarization, ensuring access
to financial data and eliminating the need for an external data warehouse.
• Are automatically updated by the following general ledger processes: posting, open
period, and translation.
• Consist of a set of defining business entities called dimensions.

Copyright © 2017, Oracle and/or its affiliates. All rights reserved. 3 - 47

Balance Cube Dimensions
Dimension Description
Accounting Period Based upon the calendar of the ledger or ledger set. Report on
years, quarters, or periods.
Ledger or Ledger Set Used to select a ledger for reporting.
Charts of Accounts Segments from the charts of accounts, organized by hierarchy.
Segments
Scenario Indicates whether the balances are actual, allocated, or actual
including allocated, budgeted, or forecast.
Balance Amount Indicates whether the value is a debit or credit, and whether it is
for the beginning balance, period activity, or ending balance.
Amount Type Indicates whether the amounts represent Base, Period, Quarter, or
Year to Date.
Currency Used to select the desired currency for the balances.
Currency Type Used to select the currency type of the balances. Available options
are Entered, Converted, or Total.

Copyright © 2017, Oracle and/or its affiliates. All rights reserved. 3 - 48

Manage Ledger Sets

• Enables you to group multiple ledgers that share the same chart of accounts and
calendar combination to increase the efficiency of your period close, security
administration, and reporting.
• Allows you to treat multiple ledgers as one.

Copyright © 2017, Oracle and/or its affiliates. All rights reserved. 3 - 49

Overview

Copyright © 2017, Oracle and/or its affiliates. All rights reserved. 3 - 50

Open and Close Periods Life Cycle

Copyright © 2017, Oracle and/or its affiliates. All rights reserved. 3 - 51

Reconciliation Concepts
Reconciliation Requirement
Subledger to General Ledger
reconciliation reports to match
Accounts Payable and Accounts
Receivable transaction entries to
General Ledger accounting entries.
Intercompany reconciliation reports
to assist you with reconciling your
intercompany receivables and
intercompany payables accounts,
and to identify any differences.
Drilldown to originating
transactions.
Reconciling high data volume.
Solution
• Receivables to Ledger Reconciliation and Payables to Ledger
Reconciliation Reports:
• Automatically match subledger transactions to accounting
entries to accelerate the reconciliation and close processes.
• Identify exceptions to guide your reconciliation efforts.
• Prepare Intercompany Reconciliation Reporting Information
process:
• Is run from within the reconciliation work area.
• Displays the details in a series of pages with drill down
capability.
Direct drilldown to supporting journals and transactions is
provided for visibility to source information.
Analyze report output in a spreadsheet environment.
Copyright © 2017, Oracle and/or its affiliates. All rights reserved. 3 - 54
Rapid Implementation Workbook

Begin by downloading the workbook using the Create Chart of Accounts, Ledger, Legal
Entities, and Business Units in Spreadsheet task on the Setup and Maintenance work area.

Copyright © 2017, Oracle and/or its affiliates. All rights reserved. 3 - 55

Account Defaulting

• Create with your natural account value set values in the Rapid Implementation
spreadsheet.
• Tag natural account values with an extended account type such as Assets – Accounts
Receivable, Assets – Asset Clearing, and Owner’s Equity – Retained Earnings.
– Financial category, which is used to facilitate Oracle Business Intelligence
Applications (OBIA) Reporting, is automatically assigned.
– Tagged natural accounts are used to generate accounts in setup objects, such as
ledgers, bank accounts, asset books, intercompany accounts, receivables system
options, payables common options, and so on.

Copyright © 2017, Oracle and/or its affiliates. All rights reserved. 3 - 56

Country-Specific Document and Journal Sequencing

• Use the Financials Sequences worksheet in the Rapid Implementation spreadsheet.

• Create document, accounting, and reporting sequences, versions, and assignments for
your ledgers or legal entities, based on your country-specific sequencing requirements.
• Capture country information about your setup to create country-specific defaults for
sequencing.

Copyright © 2017, Oracle and/or its affiliates. All rights reserved. 3 - 57

Rapid Implementation Spreadsheets

Copyright © 2017, Oracle and/or its affiliates. All rights reserved. 3 - 58

Enterprise Structures Setup Report

Copyright © 2017, Oracle and/or its affiliates. All rights reserved. 3 - 59

Diagnostic Tests for Enterprise Structures Setup Data

Copyright © 2017, Oracle and/or its affiliates. All rights reserved. 3 - 60

End of Day One material
Who is speaking to you today?
Today, it’s me, Chris Venezia… from
Platform Technology Solutions (“PTS”),
Oracle Development’s partner engagement team.

Later in the week, you’ll hear from my

colleague, Sreeni Devireddy.

.. and you are …?

Copyright © 2017, Oracle and/or its affiliates. All rights reserved. 3 - 62
6