Oracle Online Training Materials – Usage Agreement

Oracle Online Training Materials – Usage Agreement
Use of the information, documents and online training courses (collectively, “Materials”) found on this area of the Site constitutes agreement with the following terms and conditions (as well as those set forth in the Purpose and Disclaimer sections below): 1. Oracle is pleased to allow its business partner (“Partner”) to download and copy the Materials found on this area of the Site. The Materials are proprietary information of Oracle. Partner or other third party at no time has any right to resell, redistribute or create derivative works from the Materials. The use of the Materials is restricted to the non-commercial, internal training of the Partner’s employees only. The Materials may not be used for training, promotion, or sales to customers or other partners or third parties. 2. Oracle is a registered trademark of Oracle Corporation and/or its affiliates. Other names may be trademarks of their respective owners. 3. Oracle disclaims any warranties or representations as to the accuracy or completeness of any Materials. Materials are provided "as is" without warranty of any kind, either express, implied or statutory, including without limitation the implied warranties of merchantability, satisfactory quality, fitness for a particular purpose, accuracy, timeliness and non-infringement of third-party rights. The information contained herein is subject to change without notice. 4. Under no circumstances shall Oracle be liable for any loss, damage, liability or expense incurred or suffered which is claimed to have resulted from use of these Materials. As a condition of use of the Materials, Partner agrees to indemnify Oracle from and against any and all actions, claims, losses, damages, liabilities and expenses (including reasonable attorneys' fees) arising out of Partner’s use of the Materials. 1

Purpose: This document provides an overview of features and enhancements included in Oracle Fusion Applications 11gR1 Release and applicable updates. It is intended solely to help you assess the business benefits of upgrading your existing Oracle Products to this release, or implementing completely new Oracle developed products, and planning your I.T. Projects. Disclaimer: This document in any form, software or printed matter, contains proprietary information that is the exclusive property of Oracle. Your access to and use of this confidential material is subject to the terms and conditions of your Oracle Software License and Service Agreement or other applicable contract with Oracle, with which you agree to comply. This document and information contained herein may not be disclosed, copied, reproduced or distributed to anyone outside Oracle without Oracle’s prior written consent. This document is not part of your license agreement nor can it be incorporated into any contractual agreement with Oracle or its subsidiaries or affiliates. This document is intended to outline our general product direction. It is intended for informational purposes only and solely to assist you in planning for the implementation and upgrade of the product features described. Release information contained in this document is not a firm development plan. Release information published here should not be used as the basis for customer delivery commitments, as part of marketing efforts, or during contract negotiations. This is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality, and inclusion or not thereof in the commercially available version of the Software, if any, is subject to change at any time and is always at Oracle’s sole discretion. This document is not considered part of the applicable program documentation. Due to the nature of the product architecture, it may not be possible to safely include all features described in this document without risking significant destabilization of the code. 2

Oracle Fusion Financials Enterprise Structures Implementation and Configuration Considerations – Part 1

Agenda Overview Key Features Additional Resources
Financial Reporting Structures Charts of accounts Calendars Currencies Additional Resources 4

Overview Financial Enterprise Structures
Financial enterprise structures are the entities that define the reporting, legal and business aspects of your enterprise Financial Enterprise Structures Financial reporting structures - Charts of accounts - Calendars - Currencies Legal entities* - Legal jurisdictions and authorities - Legal reporting units - Legal entities Ledgers and accounting configurations* Business units* - Business units and business functions - Reference data sets * Covered in a separate implementation training: Oracle Fusion Financials Enterprise Structures Implementation and Configuration Considerations – Part 2 5

Overview Key Features Financial reporting structures
Charts of accounts Value Sets Chart of accounts structures Chart of accounts structure instances Account hierarchies Cross validation rules Calendars Accounting calendars Transaction calendars Currencies Conversion rate types and daily rates 6

Financial reporting structures
Charts of accounts 7

Feature Summary (1/2) Financial reporting structures – Charts of accounts
Define your chart of accounts structure, segments, segment labels and value sets Reuse the same chart of accounts structure to create different chart of accounts structure instances that fit your enterprise needs Create and publish date-effective hierarchies to reflect parent/child relationships between your segment values Create your charts of accounts to organize and track your financial transactions and reporting 8

Feature Summary (2/2) Financial reporting structures – Charts of accounts
Define segment value security rules against your value sets to control access to parent and detail values across any chart of accounts segment Define cross-validation rules to prevent creating account combinations when certain values across segments are combined 9

Chart of accounts structure Chart of accounts structure instances
Key Decisions (1/2) Financial reporting structures – Charts of accounts Chart of accounts structure How many structures do I need? You must define at least one chart of accounts structure. The structure defines the number of segments, segment sequence, and segment labels. If you require any of these to change across your charts of accounts, then define more structures as needed. How many segments should I define? Identify the aspects of your business that you need to track and analyze, such as company, division, cost center, department, account line of business, etc. Anticipate future reporting requirements by defining one or more “future” segments. Chart of accounts structure instances How many structure instances do I need? The chart of accounts structure instance inherits all the attributes of the chart of accounts structure, but you can create as many instances as you want and customize them to fit your enterprise needs. What attributes can I customize in my chart of accounts instances? The number of segments, segment sequence and segment labels are fixed across all your chart of accounts instances. However, you may choose to have a unique value set or attach a unique account hierarchy to each segment instance. 10

Segment value security Cross-validation rules
Key Decisions (2/2) Financial reporting structures – Charts of accounts Account hierarchies Do I need account hierarchies? Create account hierarchies to reflect managerial, legal or geographical relationships between your value set values. Your financial balances are pre-aggregated at each parent level in your hierarchy, thus allowing fast and robust account inquiry and drill. How many account hierarchies should I define? Hierarchies are built on top of value set values. You can define as many as you want per value set. We recommend creating different hierarchies for trees that serve different business purposes (e.g. management versus geographical hierarchy), and within each hierarchy define date-effective versions to reflect changes over time. Segment value security Do I need segment value security? Implement segment value security if you need to control access to parent and detail values across any chart of accounts segment. Is it different from data access set security? Data access set security controls access to ledgers and primary balancing segment values only in Fusion General Ledger. We recommend using data access security to secure your primary balancing segment values, and segment value security to secure all other segment values. Cross-validation rules Do I need cross-validation rules? Use cross-validation rules if you have a business need to prevent certain segment values to be combined with other values across different segments of your chart of accounts Are they different from segment value security? Cross-validation rules only prevent the creation of new account combinations in case the underlying segment values violate the validation rules you specify. Segment value security controls the access to the values of each chart of accounts segment, irrespective of the values in other segments. 11

Chart of accounts structure Chart of accounts structure instance
Implementation Concepts (1/9) Financial reporting structures – Charts of accounts Chart of accounts structure Chart of accounts structure instance Segments Labels Default value set Segments Labels Default value set Value Set (can override) Values Segment value security Account combinations Cross validation rules Account hierarchies Primary balancing segment Second balancing segment Third balancing segment Natural account segment Intercompany segment Cost center segment 12

Implementation Concepts (2/9) Financial reporting structures – Charts of accounts
Chart of accounts structure Building block of your chart of accounts implementation, geared towards flexibility and minimizing setup efforts Defines the number of segments, segment sequence, labels and default value set for each segment Chart of accounts structure instance Also referred to as chart of accounts Multiple charts of accounts can share the same structure, but each may be customized differently to fit your transactional and reporting requirements: Value set Account hierarchy Dynamic combination creation 13

Example: Chart of accounts structures and instances Chart of accounts structure Corporate chart of accounts Company Company value set Department Department value set Department Management Hierarchy Account Account value set Account Hierarchy Subsidiary chart of accounts Department Geographical Hierarchy Account subsidiary value set Primary balancing segment Second balancing segment Natural account segment 1 2 3 Company Company value set Department Department value set Account Account value set Dynamic account creation disabled Dynamic account creation enabled 14

Segment labels (qualifiers) Segment labels assign special functionality to certain segments in your chart of accounts structure You may use up to 3 balancing segments to allow for more granular transaction tracking and financial reporting Segment label Usage Primary balancing segment Required – ensures that all journals are balanced for each primary balancing segment value Natural account segment Required – mapped to an account type, a financial category and other key transactional attributes Second balancing segment Optional Third balancing segment Intercompany segment Optional – used in intercompany balancing. If this is a new chart of accounts implementation, you should enable the intercompany segment. Cost center segment Only required if accounting for certain transactions in Fusion Financials. It is recommended that you enable the cost center segment for your chart of accounts. Management segment Do not use – planned for a future release 15

Geographical hierarchy
Implementation Concepts (5/9) Financial reporting structures – Charts of accounts Account hierarchies Create account hierarchies (trees) to identify managerial, legal or geographical relationships between your value set values Define date-effective tree versions to reflect organizational changes within each hierarchy over time Publish multiple hierarchies to balances cubes to allow for financial reporting and analysis of past, present or future data Value set Management hierarchy 2010 version 2011 version Geographical hierarchy Chart of accounts segment Assign a specific hierarchy to your segment to be used for general ledger processing (e.g. revaluations, balance transfer) Since a segment is associated with a value set, all published hierarchies may be used to perform date-effective comparisons of financial data 1 2 16

Segment value security Define security rules against your value sets to control access to parent or detail segment values Securing a value set denies access to all values by default. Create conditions and assign them to specific data roles to control access to your segment values Example Security condition Cost Center Equal to “Accounting” Data role “General Accountant – InFusion USA” Security policy associated with the Cost Center value set In this example, you enable security on both the Cost Center and Account value sets that are associated with your chart of accounts. Users assigned the “General Accountant – InFusion USA” data role will have access to cost center ‘Accounting’ and account ‘US Revenue’. All other users will be denied access to all cost center and account value set values. Security condition Account Equal to “US Revenue” Data role “General Accountant – InFusion USA” Security policy associated with the Account value set 17

Segment value security (cont’d) You may use any of the following operators in your conditions to secure your segment values: Operator Usage Equal to Secures a specific detail value. You cannot use this operator to secure a parent value. Not equal to Secures all detail values except one that you specify. You cannot use this operator to secure a parent value. Between Secures a range of detail values. Is descendent of Secures the parent value itself and all of its descendents, including mid-level parents and detail values. To use this tree operator, you must specify an account hierarchy (tree) and a tree version. However, the security rules apply across all tree versions of the specified hierarchy, as well as all hierarchies associated with the value set. Is last descendent of Secures the last descendents (i.e. the detail values) of a parent value. To use this tree operator, you must specify an account hierarchy (tree) and a tree version. However, the security rules apply across all tree versions of the specified hierarchy, as well as all hierarchies associated with the value set. 18

Geographical hierarchy
Implementation Concepts (8/9) Financial reporting structures – Charts of accounts Segment value security (cont’d) Security rule based on hierarchical operator Your cost center segment has 2 account hierarchies: a management and a geographical hierarchy. You originally secure (using the “Is descendent of” operator) the cost center “100” in the 2010 version of your management hierarchy, but a change in the cost center responsibilities requires you to create a 2011 version to highlight the new parent/child relationships. For data security purposes, the 2011 version of the management hierarchy is the currently active version. Example Retrieve account hierarchy from security rule Management hierarchy/2010 version is specified when securing parent value 100 using the ‘Is descendent of’ operator Derive effective version based on system date Management hierarchy/2011 version is the effective tree version based on the system date Apply security condition to get the list of descendents based on the effective tree version The parent value itself and all its descendents will be secured based on the effective tree version. The values are: 100, 200, 300, 101, 201, 202, 301, 302 List of values is accessible across all versions of the secured hierarchy, and across all hierarchies associated with the value set In Management hierarchy/2010 version, 203 is denied access. All other values can be accessed In Geographical hierarchy, 400/401/402 are denied access. All other values can be accessed Management hierarchy Geographical hierarchy Legend 2010 version 2011 version 2010 version 100 200 201 300 301 302 400 401 402 100 101 200 201 202 203 300 301 302 100 200 101 201 202 300 301 302 Access granted Access denied 19

Cross-validation rules Determine what segment values may be combined with other values across different segments of your chart of accounts Prevent the creation of new account combinations only, in case the underlying segment values violate the validation rules Defined in terms of a condition filter and a validation filter Condition filter - event under which the rule will be evaluated Validation filter - condition that the account combination must satisfy before it can be created Your enterprise has determined that the “Operations” company value cannot use the “Marketing” department. Create the following cross-validation rule to prevent creating new account combinations that violate this requirement: Example Condition filter Segment: Company Operator: Equal to Value: Operations Validation filter Segment: Department Operator: Not equal to Value: Marketing 20

Deltas with EBS Financial reporting structures – Charts of accounts
R12 EBS Fusion Added benefits No chart of accounts structures Chart of accounts structures, chart of accounts structure instances The chart of accounts structure is the building block of your setup, geared towards flexibility and minimizing implementation efforts. Create multiple charts of accounts (structure instances) that share the same structure, but customize each differently to fit your enterprise needs. One balancing segment, secondary tracking segment Up to 3 balancing segments Create your chart of accounts based on up to 3 balancing segments, thus allowing more granular transaction tracking and financial reporting. Segment Qualifier Segment Label N/A – nomenclature change. Compile Accounting Flexfield Deploy Accounting Flexfield 21

Best Practices (1/11) Financial reporting structures – Charts of accounts
To streamline your chart of accounts implementation, follow the steps below: Create your value sets with no values Create your chart of accounts structure and specify your segment labels Create your chart of accounts (structure instance) Create your value set values and specify mandatory attributes (Optional) Create and publish your account hierarchies (Optional) Define segment value security rules (Optional) Define cross validation rules Create value sets with no values Create chart of accounts structure Create chart of accounts structure instance Create value set values Create account hierarchies (Optional) Publish account hierarchies (Optional) Define segment value security (Optional) Define cross validation rules (Optional) 22

General implementation considerations Implementation question Recommendations and best practices How do I design the structure of my chart of accounts? Design the structure of your chart of accounts carefully, including the number of segments and their sequence. Plan ahead and anticipate the growth of your enterprise by defining one or more “future” segments. Assign those segments a default value to streamline data entry in your Flexfield components. After you complete your accounting configuration and begin your transaction cycle, making changes to the segments is neither recommended nor supported. Can I start using my chart of accounts immediately after creating or updating it? You must deploy (compile) the Accounting Flexfield every time you create new or make structural changes to your chart of accounts and account hierarchies, to ensure that the new changes take effect across all applicable flows in Fusion Financials. This includes: Creating a new chart of accounts structure, or modifying its key attributes, or the attributes of its segments Creating a new chart of accounts (structure instance), or modifying its key attributes, or the attributes of its segments Associating an account hierarchy to a chart of accounts segment Enabling or disabling segment value security on a value set 23

Value sets Implementation question Recommendations and best practices What validation type should I use? Only “Independent” and “Table” validations are supported. The “Dependent” validation type is planned for a future release. What value data type and subtype should I use? Use the “Character” data type and the “Text” subtype, which are typical in natural account segment values. We recommend restricting values to uppercase only and numeric values to be zero-filled by default. What should be the maximum length of my value set? The maximum length of your value set must be limited to 25 characters due to a constraint in the account combinations table in Fusion General Ledger. Set the maximum length to correspond to the width of the chart of accounts segment to which it is assigned. Should I start defining values immediately after creating my value set? Associate your value set to a chart of accounts before defining your value set values. This ensures that the key attributes of your values (e.g. “Allow Posting”, “Account Type”, etc.) can be specified. 24

Chart of accounts structure Implementation question Recommendations and best practices When should I create my chart of accounts structure? You must create your chart of accounts structure after creating your value sets because the structure must be assigned a default value set. How should I define my segment labels? All segment labels can only be assigned once throughout the chart of accounts structure. The following segment labels are mandatory: “Primary Balancing Segment” and “Natural Account Segment”. Each must be assigned to only segment, and the assigned segment cannot be qualified with any other segment label. The Intercompany segment is optional; however, for new implementations, you should use this segment and assign the same values to both the primary balancing and intercompany value sets to enable clear visibility of the due to and due from relationships inherent in intercompany accounting. The second/third balancing segments are optional, and may be co-assigned with the cost center segment. Do not use the management segment label. It is planned for a future release. 25

Chart of accounts structure (cont’d) Implementation question Recommendations and best practices How do I choose my segment display width? We recommend that you set the display width of each of your segments to correspond to the maximum length of the value set to which it is assigned. Must the segment sequence be gapless? The chart of accounts structure defines the number of segments and the segment sequence for your chart of accounts. You must use sequential numbering (beginning with number 1) and avoid any gaps in the display order of your segments. 26

Chart of accounts Implementation question Recommendations and best practices How do I define my chart of accounts structure instances? The chart of accounts (structure instance) definition is based on the chart of accounts structure it is associated with. If your enterprise needs identical structures for different charts of accounts, consider creating one structure and customize your charts of accounts accordingly to fit your enterprise needs. Should I turn on dynamic combination creation? We recommend turning on the setting for dynamic combination creation until all setup-related activities are finalized. Turn off dynamic creation to prevent creating new account combinations throughout the Fusion Financials pages and processes, and only limit it to the Account Combinations UI. How do I associate an account hierarchy to my segments? For each segment, you may assign an account hierarchy (“Tree Code” attribute) that will be used for general ledger processing, as well as allocations and financial reporting. 27

Chart of accounts (cont’d) Implementation question Recommendations and best practices How do I choose my segment attributes? All chart of accounts segment attributes are inherited from the chart of accounts structure. Additionally, you must ensure that all segments be required and displayed in your chart of accounts by turning on the “Required” and “Displayed” attribute. For segments that you expect to have a large number of distinct values, you must perform the following steps: In the chart of accounts definition, mark the segment “Query Required” option as “Selectively required”. When performing search in a transactional page, you will have to specify the segment as a mandatory search criteria. You must create indexes in the GL_CODE_COMBINATIONS table for segments that are selectively required. 28

Value set values Implementation question Recommendations and best practices Should I start defining values immediately after creating my value set? We recommend defining your value set values after creating your chart of accounts. This ensures that the key attributes (e.g. “Allow Posting”, “Account Type”) are displayed and can be specified. How should I set the Summary attribute? You must set the Summary flag to “No” for a detail value, and to “Yes” for a parent value. Changing the summary flag attribute after completing your accounting configuration (ledger setup) is neither recommended nor supported. How should I set the Allow Posting attribute? You must this attribute to “Yes” for a detail value, and to “No” for a parent value. An exception to this rule is the natural account value for the net income account in Fusion General Ledger, for which you must set this flag to “No”. How should I set the Allow Budgeting attribute? This flag is not used directly in this release, but we recommend setting it to “No” for detail values, and to “Yes” for parent values. When do I use a Financial Category? If you plan to use OTBI reporting, you must specify a financial category for your natural account values. 29

Value set values (cont’d) Implementation question Recommendations and best practices I completed my accounting configuration. Is it OK to create new or modify existing value set values? If you create new value set values after your accounting configuration (ledger setup) is complete, you must manually run the following processes: Maintain Value Sets – updates value set values in Fusion General Ledger tables. Publish Chart of Accounts Dimension Members – publishes chart of accounts dimension member changes to balances cubes associated with the value set’s chart(s) of accounts. If you modify your segment value attributes (e.g. “Start Date”, “End Date”, “Allow Posting”, “Account Type”, etc.), and want the associated account combinations to inherit them, you must manually run the Inherit Segment Value Attributes process . 30

Account hierarchies Implementation question Recommendations and best practices How do I create a new account hierarchy? You must implement all your account hierarchies (trees) based on the seeded “Accounting Flexfield Hierarchy” tree structure. When specifying the data source for your hierarchy, you must specify the same value set code for both parent and detail values. You must save your data source parameters before proceeding to the next screen in your account hierarchy definition. How do I define tree versions for my hierarchy? Define date-effective tree versions for your account hierarchies to reflect organizational changes over time. The effective dates for your tree versions must not overlap. Before using your tree version, you must perform an online audit to validate your version for any structural or functional errors. To activate your tree version and ready it for use, set its status to “Active”. You can only transact with and report on active versions. Do I need to publish my account hierarchies? You must publish your account hierarchies to cubes if you plan to use them for allocations and financial reporting. Otherwise, they will only be available for transactional flows. If you have not finalized your accounting configuration, you can mark your hierarchies for publishing and they will be picked up when your ledger setup is complete. 31

Account hierarchies (cont’d) Implementation question Recommendations and best practices How do I ensure that new hierarchies or updates to existing ones go into effect? When you create new account hierarchies, or make changes to existing hierarchies, you must manually run the following processes: Column Flattening and Row Flattening – run these online processes on a specific tree version to flatten the parent/detail value relationships in your tree version and ready it for your transactional and reporting flows. Maintain Value Sets – updates value set values in Fusion General Ledger tables. Maintain Chart of Accounts Hierarchies – updates chart of accounts hierarchies in Fusion General Ledger tables. Publish Chart of Accounts Dimension Members – publishes chart of accounts dimension member and hierarchy changes to balances cubes associated with the value set’s chart(s) of accounts. Can I delete an account hierarchy? You must decommission (“unpublish”) a tree version from your balances cubes before deleting it (or deleting its associated hierarchy), otherwise you will no longer be able to remove it from your cube outlines. 32

Relevant Setup Tasks Financial reporting structures – Charts of accounts
Under the Financials offering locate the Define Chart of Accounts task grouping and navigate to the tasks needed to successfully bring your chart of accounts implementation into completion Define Common Applications Configuration for Financials Define Enterprise Structures for Financials Define Financial Reporting Structures Define Chart of Accounts Manage Charts of Accounts Manage Chart of Accounts Value Sets Manage Account Hierarchies Publish Account Hierarchies Manage Account Combinations Manage Segment Value Security Rules Manage Cross-Validation Rules Manage Chart of Accounts Mappings(1) Manage Chart of Accounts Synchronization with DRM Maintain Segment Value Attributes(2) Covered in the Oracle Fusion General Ledger Implementation and Configuration Considerations implementation training Navigate to this task to run the Inherit Segment Value Attributes process 33

Calendars 34

Feature Summary Financial reporting structures – Calendars
Create your accounting calendars to record your transactions into accounting periods and monitor the close cycle across your entire enterprise Create your transaction calendars to track your business and non-business days for average balance processing Create your calendars to record and track your transactions by accounting periods and business days 35

Adjusting period frequency
Implementation Concepts (1/3) Financial reporting structures – Calendars Accounting Calendars Generate your accounting periods automatically by specifying your calendar attributes from a pool of commonly used standard/adjusting period frequencies, and other key parameters If your organization uses a custom type of calendar that does not fit any of the seeded frequencies, then you must use the “Other” period frequency, and manually define the period start/end dates Automatically generate accounting periods Start date Period Frequency Adjusting period frequency Period name format User-defined prefix Separator Period format Period frequency Weekly 4/4/5 4/5/4 5/4/4 4 Week Monthly Quarterly Yearly Other Adjusting period frequency None 1 year end 1 year beginning and 1 year end 1 mid year and 1 year end 2 year end 1 mid year and 2 year end Quarterly Other 36

Implementation Concepts (2/3) Financial reporting structures – Calendars
Accounting Calendars (cont’d) Creating the calendar initially generates 1 year worth of periods If needed, customize the generated period names/dates while abiding by the basic validation rules: The period names must be unique The period numbers must be unique within a year The standard period dates must not overlap There must be no gaps between the standard period dates or numbers An adjusting period date range must overlap with that of a standard period Generate additional years using the same parameters that you initially specified to create your calendar 37

Implementation Concepts (3/3) Financial reporting structures – Calendars
Transaction Calendars Implement transaction calendars only if your enterprise requires ledgers with average balance processing Generate your transaction dates automatically by specifying the business day schedule. Customize the generated dates to account for holidays or non-business days specific to your enterprise 38

Deltas with EBS Financial reporting structures – Calendars
R12 EBS Fusion Added benefits Manual definition of accounting periods Automatic generation of accounting periods The implementation of accounting calendars has been streamlined in Fusion Financials to allow the system to automatically generate the accounting periods for commonly used standard/adjusting period frequencies. This allows you to save the time and effort of defining periods manually, and avoid erroneous data entries. If your enterprise uses a custom calendar, you must define the period details manually. Period type Not applicable The EBS “Period Type” concept is no longer exposed in the Fusion Financials screens. You must create a new accounting calendar for different period types (frequencies), and this creation process has greatly been improved to allow the automatic generation of accounting periods. 39

Best Practices Financial reporting structures – Calendars
Accounting Calendars Implementation question Recommendations and best practices What is the difference between calendar year and fiscal year formats? This impacts what year to append when generating the period names for your accounting calendar: Select the calendar year format to append the year of the period’s start date to the period name. Select the fiscal year format to append the year associated with the period, regardless of its date range, to the period name. I plan to run the translation process in Fusion General Ledger. How does this impact my accounting calendar implementation? If you plan to run the translation process for any ledger associated with your accounting calendar, keep in mind the following rule: You cannot run translation for the first period of an accounting calendar. In the current release of Fusion General Ledger, we do not allow to create a calendar year with a fewer number of periods than what the period frequency dictates. Therefore, we recommend that you add a full extra year in your accounting calendar before the first opened period of any ledger using this calendar. For example, if you plan to start transacting in Jan-11, and intend to run translation for that same Jan-11 period, start your calendar in Jan-10 (2010 year), add the 2011 year to your calendar, and then assign this calendar to your ledger with Jan-11 as the first opened period. 40

Relevant Setup Tasks Financial reporting structures – Calendars
Under the Financials offering locate the Define Calendars task grouping and navigate to the tasks needed to successfully bring your calendars’ implementation into completion Define Common Applications Configuration for Financials Define Enterprise Structures for Financials Define Financial Reporting Structures Define Calendars Manage Accounting Calendars Manage Transaction Calendars 41

Currencies 42

Feature Summary Financial reporting structures – Currencies
Enable predefined currencies or create new currencies to use across your financial applications Maintain your conversion rate types to categorize the relationships between your currencies and daily rates Define daily rates between your currencies to record transactions or run processes involving multiple currencies Maintain your currencies and define daily rates to record and run cross-currency transactions and accounting processes 43

Implementation Concepts (1/3) Financial reporting structures – Currencies
All ISO currencies are predefined; you must enable the currencies you need for your financial transactions and processes The “STAT” currency is also predefined and should be used for statistical data entry If needed, you can define new currencies and customize them to fit your enterprise transactional requirements 44

Conversion rate types Categorize the relationships between your currencies and daily rates using different conversion rate types The rate types below are predefined in Fusion General Ledger, but you can define new rate types to fit your business needs Enable cross rates if you want the system to automatically derive the daily rates for each pair of currencies in a set consisting of a pivot currency and one or more contra currencies Select a default conversion rate type to be used to derive the default daily rate in a foreign currency transaction Rate Type Description Corporate Generally used for standard market rates throughout your organization Spot Generally used to perform conversion based on the rate on a specific date EMU Fixed Used to define rates between the EUR currency and the national EMU currencies User The daily rates for the User rate type will be provided during data entry 45

Daily Rates A daily rate defines the exchange rate relationship between 2 currencies, using a specific conversion rate type and on particular conversion date Daily rates are shared across all ledgers in Fusion General Ledger Subledger applications share the same daily rates with the general ledger, but different rate types provide each subledger the ability to convert transactions at different rates Daily rate From currency To currency Conversion rate type Conversion date 46

Best Practices Financial reporting structures – Currencies
Daily rates Implementation question Recommendations and best practices How do I create daily rates? Use the ADFdi spreadsheet to create, update or delete daily rates. You may also use the user interface to update or delete existing daily rates. Alternatively, your enterprise may decide to use its own processing mechanism to upload rates directly to the daily rates interface table. Run the “Import and Calculate Daily Rates” process to import your rates into the daily rates table and ready them for use. 47

Relevant Setup Tasks Financial reporting structures – Currencies
Under the Financials offering locate the Define Currencies task grouping and navigate to the tasks needed to successfully bring your currencies implementation into completion Define Common Applications Configuration for Financials Define Enterprise Structures for Financials Define Financial Reporting Structures Define Currencies Manage Currencies Manage Conversion Rate Types Manage Daily Rates 48

Additional Resources Oracle Fusion Enterprise Structures Implementation and Configuration Considerations Oracle Fusion Financials Enterprise Structures Implementation and Configuration Considerations – Part 2 Oracle Fusion General Ledger Implementation and Configuration Considerations 49

Oracle Online Training Materials – Usage Agreement

Similar presentations

Presentation on theme: "Oracle Online Training Materials – Usage Agreement"— Presentation transcript:

Similar presentations

About project

Feedback

Log in

Auth with social network:

Oracle Online Training Materials – Usage Agreement

Similar presentations

Presentation on theme: "Oracle Online Training Materials – Usage Agreement"— Presentation transcript:

Similar presentations

About project

Feedback