Background – Current Status and

Challenges
Typical Landscape of Applications Pain Points / Challenges

In Finance Industry
• Excess Overhead: ‘Reinvent
the wheel’ for each product /
application / service

• Delays: Impossible to get

real time information

• Waste: Multiple interfaces

with large overhead

• Reconciliation Nightmare: No
‘Single Source of Truth’

• Inflexible: Difficult to meet

‘Regulatory Requirements’

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 Oracle Financial Accounting
Hub
Accounting Platform that automates interfaces from source systems or data
warehouses with the generation of Journal Entries

Enables financial institutions to address the complex demands of centralizing

financial operational data

What is in FAH?
– Rules Engine – Centralized Rules and Validation definition
– Accounting Engine – Centralized accounting engine driven from one place
– Accounting Repository – Holds subledger transactions and facilitates drill down from
GL

FAH in R12
– FAH is integrated in R12 base product and is called ‘SubLedger Accounting’ (SLA)
– Integrates Oracle Subledgers to GL through predefined accounting rules
– Facilitates External Subledgers integration through Fusion Middleware

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Future State with FAH

Accounting

3
Single Source of Accounting
using FAH

4
Deep dive FAH
Meet Conflicting Mgmt and
Regulatory Requirements
Features

• Created Simultaneously

• Distinct, Separate
representations

• Easily use different

summarization, dates,
accounts, descriptions,
journal references

• Embedded reconciliation
between representations

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FAH Components

7
Financial Transaction Flow
Thru FAH

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 FAH – Accounting Process
Accounting Events
User submits create are captured from
Accounting request Accounting Program Transactions Data
2
3
Subledger
Accounting
Identify Accounting Events Events Table
eligible to be processed.

3.1
Transaction Create New
Subledger
Objects Data Load Transaction Objects Accounting Definitions
Accounting
with AMB
3.2 Definitions
1

Select Sources from

Transaction Objects. Apply
Accounting definition and
accounting configurations.
3.3 Subledger
Journal Entries

Transfer to GL
3.4

Subledger
GL Interface Table Reporting

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Real time information flow using
Oracle Technology Stack
Oracle SOA, FAH and GL
integration

11
Current Business Scenario-
Payables Invoice
Legacy Payable Invoice

13
Legacy Journal Entries

14
Mapping of COA – Legacy to R12
through FAH

15
Journal created through FAH
in R12

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FAH Demo
Accounting Method Builder
SSC (USA) Ledger

Subledger Accounting Method

Application Accounting Definition

Journal Line Definition

Journal Entry
Journal Line Types Account Derivation Rules
Descriptions

Sources

Transaction Objects

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 Journal Line Types - DR

Go back to AMB

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 Journal Line Types - CR

Go back to AMB

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Account Derivation Rule (ADR)-
Expense Line

Go back to AMB

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 Account Derivation Rule (ADR)-
Balancing Segment

Conditions to derive R12 COA -Balancing Segment from legacy COA

Go back to AMB

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 Account Derivation Rule (ADR)-
Natural Account

Conditions to derive R12 COA – Natural Account from legacy Account

Go back to AMB

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 Account Derivation Rule (ADR)-
Cost Center

Conditions to derive R12 COA- Cost Center from legacy COA

Go back to AMB

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 Account Derivation Rule (ADR)-
Liability Account

Go back to AMB

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 Journal Line Definitions

Go back to AMB

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 Application Account
Definition

Go back to AMB

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Subledger Accounting Methods

Go back to AMB

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 Assign SLAM to Ledger

Go back to AMB

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 Global COA

• Design a Global chart of accounts

• Re Implement Oracle E Business
Suite - Oracle R12
• Leverage Financial Accounting Hub
to consolidate accounting rules and
assist in migration to new chart of
accountings / single GL
• Rationalize legacy systems and move
to a single instance
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 IFRS Compliance
• Global Financial Process
• Global Accounting Rules
• Provide global finance to enable growth
• On line reporting and analytics with
focused financial view
• Allow multi-currency reporting
(transaction, functional, and statutory)

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 Challenges

• Global standard financial process and

infrastructure for IFRS compliance
• Streamline legacy systems across
legal entities
• Intercompany reconciliations
• Real-time Financial reporting

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