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Oracle Financials Accounting Hub

Rajesh Ramdas
[email protected]
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 Agenda
Description Day Time
Session 1: Agenda
9.15 to 9.30 am
(Sign –in Sheet)
Executive Session – Irene Ong (Sales Consulting Director for Malaysia)
9.30 am to 9.45 am
Session 2: Functional Overview
Accounting – Current way, Accounting Flow, Data Flow, FAH demo, FAH
Configuration, Customer case study 9.45 am to 10.30
Session 3: Functional Deep Dive
Event Model Configuration 1 10.30 to 12.00 pm
Lunch Break 12.00 Pm to 12.45 PM
Session 4: Functional Deep Dive
12.45 PM to 2.30 pm
Accounting Model Configuration
Session 6 : Product Hands on
2.45 PM to 4.00PM
Lab exercises 1 to 5
Target Customer Profile, Pricing and Packaging and References
4.00 PM to 4.45 PM

Wrap Up
4.45 PM to 5.00 PM
Recap/Questions
 Agenda

Description Day Time

Session 7: Product Hands on – Event Model

9.15 to 11.00 am
Lab Exercises 6 to 9
Session 8: Product Hands on – Accounting Model & Draft Accounting
Lab Exercises 10 to 18
2 11.05 to 1.00 pm

Lunch Break 1.00 to 2.00 pm

Understanding FAH Use Cases 2.00 PM to 3.00 PM
Tips for Building Your Customer Presentation along with Fusion
3.15 to 4.30 pm
Accounting Hub
Wrap Up
4.30 to 5.00 pm
Recap/Questions
 Agenda
Accounting – Current way

Challenges

Value Proposition

Financial Accounting Hub

FAH Accounting Flow

FAH Configuration

Customer Scenario

Demo Scenarios

Q&A
 Agenda

Accounting – Current way

Challenges
Value Proposition
Financial Accounting Hub
FAH Accounting Flow
FAH Configuration
Customer Scenario
Demo Scenarios
Q&A
 End to End Accounting - External Systems

Extract and Transport

Payroll
Bespoke
systems

Billing
Systems Custom Program General
Ledger
3rd Party
Reporting
 Agenda
Accounting – Current way

Challenges

Value Proposition
Financial Accounting Hub
FAH Accounting Flow
FAH Configuration
Customer Scenario
Demo Scenarios
Q&A
Challenges
Disparate systems feed GL

Source Systems Finance

Legacy
Financial
Expert Systems Accounting
Management
Sub Administrations Accounting

Other Ledgers

• Duplicated logic in many programs • No audit of adjustments

• Error prone manual intervention • Manual reconciliation
• No visibility • No drilldown
• No control • GL clogged with detailed journals
 Agenda
Accounting – Current way
Challenges

Value Proposition

Financial Accounting Hub

FAH Accounting Flow
FAH Configuration
Customer Scenario
Demo Scenarios
Q&A
 Financials Accounting Hub (FAH)
Value Proposition

Visibility Efficiency Control

• Single source of truth for • Centralized accounting • Links accounting policies and
accounting engine journal entries
• Address conflicting • Enterprise-wide processing • Centrally controlled rules
accounting requirements • Sophisticated error handling • Reliable, transparent,
• Integrate transaction and • Business user oriented predefined validations
reference information interface • Advanced security for internal
• Access real-time information • Lower cost with streamlined controls
for better decision making! accounting processes! • Advanced security for internal
controls
• Auditable GL balances
• With segregation of duties,
your accountant is in control!
 Agenda
Accounting – Current way
Challenges
Value Proposition

Financial Accounting Hub

FAH Accounting Flow

FAH Configuration
Customer Scenario
Implementation Scenarios
Q&A
Financials Accounting Hub

Source Systems Financial Transformation Finance

Legacy Financials Accounting Hub

Financial
Expert Systems Accounting
Management
Sub Administrations Accounting
Rules Engine Financial
Data Store
Other Ledgers

• Centralized accounting and rules • Controlled by finance users

repository • Transparent and auditable rules
• Comprehensive validations • Supporting references
• Efficient transformation engine
 FAH Accounting Integration
Easily Create Accurate Accounting from Disparate Systems

Source Systems ETL Data Enrichment Accounting Integration ETL General Ledger

Banking Systems No ETL EBS

OFSAA
loans, mortgage,
Oracle Data Integrator,
Data Model & Calculations
deposit, trading…
PeopleSoft
(GoldenGate)

Oracle Policy
Telecom Systems
Automation Accounting Hub Fusion
billing, etc…
Validations & Calculations
JD Edwards
Insurance Systems
Insurance Insight
claims, policies,
Data Model & Calculations SAP/Other
etc…

Legend:
Always Included
Optional Components
14 Existing
Copyright Investments
© 2012, Oracle and/or its affiliates. All rights reserved.
Oracle Financials Accounting Hub

What is in Financials Accounting Hub?

• Rules repository
• Accounting Engine
• Accounting Repository

What is not in Financials Accounting Hub?

• Extract programs
• Transactions
• Calculation Engine
 Single Enterprise-Wide Accounting Solution

Source Systems Management Framework

Centralized Accounting Rules
User-Oriented Rules Definition
Savings
Predefined, Extensible Validations
Date Effective Policies
Information
Sophisticated Error Handling Auditing
Delivery
Loan
Management
Financials
Deposit Accounting
Management Hub Analytics

Claims
Detailed, Auditable Journals
Configurable Supporting Reference Balances Reporting
Regulatory
Multi-GAAP Representations Reporting

Improve Operational Efficiency Enhance Corporate Performance

Meet Compliance Requirements
 Accounting Controls

Explicit Rules Centralized Rules

• Select by Ledger • Create once,
• Policy information on deploy many times
journal entries • Refined inquiries
• Policy versioning by rule
• Date effective changes • Business user
oriented interface
• Journal inquiries by Centrally Manage Policies and Procedures
policy

Predefined Validations
• Ensure reliability
• Consistent with Oracle GL Product
Systems
Balancing
Dates
Accounting
Engine
• Validate data for pass throughs Currency
• Extensible via Workflow Events Data verification

• Fully documented
Reliable Accounting from Predefined Validations
 Event Based Accounting
Financials Accounting Hub
Source System Feed
DR (EUR) DR (USD) CR (EUR) DR (USD)

60.00 100.00
ABC XYZ 60.00 100.00
100.00 166.66
Raw Transaction /
160.00 266.66
DR and CR Explosion

DR (EUR) DR (USD) CR (EUR) DR (USD)

ABC X DR 60.00
60.00 100.00
ABC Y DR 100.00
100.00 166.66
ABC z CR 160.00
160.00 266.66
Journal Pass Through
 Agenda
Accounting – Current way
Challenges
Value Proposition
Financial Accounting Hub

FAH Accounting Flow

FAH Configuration
Customer Scenario
Demo Scenarios
Q&A
Quick Demo FAH
Process Flow
Input Accounting Hub Output
Source Data ‘Event’ Table Create Journals
Accounting GL
Legacy 1

Legacy 2

Expert
1 2 3
Other GL

1 Handle Source Data

2 Run Create Accounting
3 Look at Output
Handle Source Data
Handle Source Data
Quick Demo FAH
Handle Source Data
Quick Demo FAH
Quick Demo FSAH
Process Flow
Input Accounting Hub Output
Source Data Storage Create Journals
Accounting GL
Legacy 1

Legacy 2

Expert
1 2 3
Other GL

1 Handle Source Data

2 Run Create Accounting
3 Look at Output
Run Create Accounting
Quick Demo FAH
Quick Demo FSAH
Process Flow
Input Accounting Hub Output
Source Data Storage Create Journals
Accounting GL
Legacy 1

Legacy 2

Expert
1 2 3
Other GL

1 Handle Source Data

2 Run Create Accounting
3 Look at Output
Look at Output
Quick Demo FAH
Multi-GAAP Comparisons
 Agenda
Accounting – Current way
Challenges
Value Proposition
Financial Accounting Hub
FAH Accounting Flow

FAH Configuration – Data Handling

Customer Scenario
Demo Scenarios
Q&A
Data flow to GL
Integration Example 1:
Direct Connect to Banking Application
Input Financial Accounting Hub GL

Source System Create Journals

Accounting
FAH
Trx Events
View
2 3
1

4
FAH Ref’s
Journals
Balances
 Integration Example 2:
Custom Transaction Tables

Input Staging Financial Accounting Hub GL

GL
APP1 1A FAH Journals
Create
Events
Accounting

APP2 1B 2 3
1A

4
APP3 1A FAH Sup.
Journals Ref. Balances

1A= Extract files from external application and load via SQL Loader process using staging tables
 Integration Example 3:
Transaction Data Store
Transaction
Input Financial Accounting Hub GL
Data Store
GL
APP1 Journals
FAH Create
Events Accounting

APP2 1B 2 3
1A

Man. 4
APP3 Entries FAH Sup.
Journals Ref. Balances

1A= Extract files from banking application and load via SQL Loader process or ETL Tool
 Integration Example 4:
Data Warehouse

Input DWH Financial Accounting Hub GL

Write back to DWH

GL
APP1 Journals
FAH Create
Events Accounting

APP2 1B 2 3
1A

Man. 4
APP3 Entries FAH Sup.
Journals Ref. Balances

1A= Extract files from banking application and load via SQL Loader process or ETL Tool
 Agenda
Accounting – Current way
Challenges
Value Proposition
Financial Accounting Hub
FAH Accounting Flow

FAH Configuration – Application Config

Customer Scenario
Demo Scenarios
Q&A
Overview Setup FAH
Subledger Accounting Method

Accounting Model Application Account Definition

Journal Lines Definitions

Journal Entry Account Derivation

Analytical Criteria Journal Line Types
Description Rules

Journal Entry
Mapping Sets
Conditions

Event Type
Event Class
Sources
Model

Event Type
Event

Event Entity
Event Type
Event Class Accounting Attributes
Event Type
 Example Loans
IFRS, BE-Gaap

Subledger Accounting Method

Accounting Model
Core Banking
Application Account Definition

Loan Orig.Template
Journal Lines Definitions

Journal Entry Account Derivation

Analytical Criteria Journal Line Types
Description Rules

Journal Entry
Mapping Sets
Conditions

Event Type Core Banking

Loans
Event Class
Sources
Model

Event Type
Event

Event Entity
Event Type
Event Class Accounting Attributes
Event Type
Real Estate, Personal Credit Opening, Drawdown, Consolidation,
Amortization, Review, Cancellation, Early
repayment…
Event Entity Model
Event Classes-Event Types
Event Class – GL Options

Up to 10 User Transaction fields,

Dynamically retrieved from view
Event Class – Source Object Linking
Event Class – With Reference objects
Sources
Accounting Attributes
Overview Setup FAH
Subledger Accounting Method

Accounting Model Application Account Definition

Journal Lines Definitions

Journal Entry Account Derivation

Analytical Criteria Journal Line Types
Description Rules

Journal Entry
Mapping Sets
Conditions

Event Type
Event Class
Sources
Model

Event Type
Event

Event Entity
Event Type
Event Class Accounting Attributes
Event Type
Subledger Accounting Method
Application Accounting Definitions
Journal Line Definitions
Journal Line Types
Account Derivation Rules
Account Derivation – Mapping Sets
 Example Loans
IFRS, BE-Gaap

Subledger Accounting Method

Accounting Model
Core Banking
Application Account Definition

Loan Orig.Template
Journal Lines Definitions

Journal Entry Account Derivation

Analytical Criteria Journal Line Types
Description Rules

Journal Entry
Mapping Sets
Conditions

Event Type Core Banking

Loans
Event Class
Sources
Model

Event Type
Event

Event Entity
Event Type
Event Class Accounting Attributes
Event Type
Real Estate, Personal Credit Opening, Drawdown,Consolidation,
Amortization, Review, Cancellation, Early
repayment…
 Agenda
Accounting – Current way
Challenges
Value Proposition
Financial Accounting Hub
FAH Accounting Flow
FAH Configuration

Customer Scenario

Demo Scenarios
Q&A
 Customer Case Study 1 – Approach
Insurance Industry

• Objective
• Provide Finance access to Policy Admin transaction details (policy number,
claim number, state, …) in FAH
• Approach
• Interface all Policy Admin systems through FAH, not directly to GL
• Leverage FAH to drive accounting
• User Reference fields defined to store transaction details (policy number, claim
number, state, …)
• User Reference fields to store balances across policy admin systems by
Account and Transaction
• Use FAH Inquiry to view User Reference field balances online
 Customer Case Study 1 – Approach
Insurance Industry
GRADS Matrix

• Process policy CAS

and claims Leverage

Payment
Payment Data
Data

Payment

transactions Policy
Transaction
Data
Data
Payment
Data
iProcurement
Policy PACS

• Store policy admin

Transaction
Data
Policy
Transaction
Data
APS

transaction details Policy

Transaction
Data
Policy Retained
BISYS

Transaction CAMRA Asset

• Drill down from

Data
Ceridian PDRS Requisitions

Payroll
Investment Data
Data

GL Expense
Data
GELCO

• Track balances by
Payment
Journal
Data
Financials Accounting Hub PO
Unclaimed

Transaction and Tracker

Payment
Data
Cleared
Payment
PO Receipts Asset
Receipts
Data

State Payment
Data

Journal
Entries AP FA

Invoice/
Asset
Payment
Depreciation
Journals

GL
 Customer Case Study 1 – Benefits
Insurance Industry

• Thin GL - Access to Policy Admin financial details stored in centralized accounting

repository
• Drill back capability facilitates business and audit inquiries
• GL Balances to GL Journals to FAH Transactions
• Business analyst can manage financial mapping of transactions
• Lowering cost - no need to change interface programs
• Real-time view of Balances by Account, Transaction, State, … in FAH through
online inquiry
• Reconciliation improvements through tracking of policy and claims references in
FAH
• Improved detailed reporting now possible for FAH transactions (policy number,
claim number, state, …)
Customer Case Study 1
Lessons Learned

• Account derivation rules can address complex mappings

• Must map directly from old value to new value
• Use multiple mappings within one derivation rule
• Leverage Priority and Conditions (mutually exclusive)
• Subledger balances on User Reference fields
• Maintained by combination of CCID and User Reference Fields
• User reference fields can be used individually or dependently
• Consider inquiry and reporting requirements when designing
• When testing new feeder systems start small
• Create Accounting for large files with lots of errors can be very slow
• Use diagnostics report to trouble shoot transactions
• Determine source assignment levels carefully
• Header vs Line
 Agenda
Accounting – Current way
Challenges
Value Proposition
Financial Accounting Hub
FAH Accounting Flow
FAH Configuration
Customer Scenario

Demo Scenarios

Q&A
 Event Based Accounting
Financials Accounting Hub
July 13, 2010
Source System Feed
DR (EUR) DR (USD) CR (EUR) DR (USD)

60.00 100.00
1 ACCRUAL 60.00 100.00
100.00 166.66
160.00 266.66

Raw Transaction /
July 14, 2010
DR and CR Explosion
DR (EUR) DR (USD) CR (EUR) DR (USD)

Reverse the Journal next Day 60.00 100.00

100.00 166.66
160.00 266.66
 Event Based Accounting
Financials Accounting Hub
July 13, 2010
Source System Feed
DR (EUR) DR (USD) CR (EUR) DR (USD)

500.00 500.00
1 MULTIPERIOD 500 500
500.00 500.00
Enable MP START date End Date
Aug 2, 2010
YES 01-aug-10 30-sep-10
DR (EUR) DR (USD) CR (EUR) DR (USD)

250.00 250.00
250.00 250.00
Account the Entry over 2 period
Sep 1, 2010
DR (EUR) DR (USD) CR (EUR) DR (USD)

250.00 250.00
250.00 250.00
Event Based Accounting

Source System Feed

Reference Object
Summary
 Summary

CHALLENGES CAPABILITIES VALUE

• Manage complexity • Centralized accounting setup • Lower costs with streamlined
and processing accounting processes

• Meet diverse accounting • Configurable and auditable • Satisfy diverse accounting

requirements accounting rules and reporting requirements

• View better information • Balances striped by business • Access real-time information

dimension attributes for better decision making