Supplier Model in Oracle ERP Cloud

Below figure illustrates Supplier model in Oracle ERP Cloud.

What's new in Oracle Financials Cloud 21C -New update from Oracle

Oracle Financials Cloud 21C What's New

 

Performing Consolidations with respect to any of the below methods/scenarios/cases

 

Consolidation Method	Multiple Ledgers	Single Ledger	Data Transfer -complex financials, multiple ERP’s or instances
Case	-Addition of new company as a Subsidiary ledger in case of a new company -COA structure, Calendar and currency are same across ledgers	Addition of a new company as legal entity within the same ledger	Addition of legal entity/entities or ledger/ledgers in case of new company/companies and uses consolidation tool.
Pain Areas	-Addition of a ledger -Defining and maintaining the mappings and mapping sets -Consolidation definitions etc.	-Addition of a legal entity -Defining and maintaining the lookups -Defining and maintaining the mappings.	Configurations on the tool for required integrations
Approach	Oracle's Global Consolidation System (GCS)	Financial Statement Generator (FSG) or BI Reporting	Oracle's Hyperion Tool

              

1.      Consolidation Method: Global Consolidation System

Case 1 – Considering new company as a new subsidiary ledger.

Assuming operations majorly in United States and having one parent ledger with USD currency and whenever a new company is added client considers that as a new subsidiary ledger since the COA structure and currency is the same and in sync with the parent ledger.

 

Below are the steps of consolidation via GCS Process:

·        Define ledger.

·        Prepare subsidiary data.

·        Create Consolidation and Chart of Accounts Mapping– Subsidiary to parent COA structure mapping.

·        Translation - If any foreign currency ledger or company, then you need to run translation to bring all the journals in your parent ledger currency.

·        Transfer the data – Run the Consolidation Data Transfer program to transfer balances or transactions from your subsidiaries to the parent ledger.

·        Import - Each transfer creates a consolidation journal in the parent ledger.

·        Elimination - Elimination intercompany balances

·        Posting - Post journals

·        Trial Balance - Run TB

·        Reporting - Financial reports from the consolidated ledger

·        Analyze - Use full drilldown capabilities to drill from consolidated balances down to subsidiary journal lines and subledger detail.

Benefits:

·        View the status of your consolidation and monitor subsidiary account balances for any changes that occur after the subsidiary data has been transferred.

·        Global consolidation system uses the same master files and bases on the same data model as GL, therefore there is no need for integration (e.g., Chart of Accounts, currency rates)

·        Global consolidation system would allow you to drill down to source documents – if you transfer transactions (not balances) to your consolidated set of books.

 

 

 

2.      Consolidation Method – Financial Statement Generator or BI Reporting:

Case  2– Considering new company as a new legal entity or balancing segment value.

Assuming that operations majorly in United States and having one parent ledger with USD currency and whenever a new company is added client considers that as a new legal entity with their COA structure and currency same and in sync with the parent ledger.

                                                

Below are the steps for doing consolidation via BI reporting Process:

·        Creating a new legal entity/new company under the parent ledger.

·        Lookup to be configured in Oracle EBS for legal entities mapping, map all Legal entity to one consolidated value in the lookup.

·        Create another lookup for intercompany elimination entries and map all the Legal entity to one elimination value in lookup.

·        The intercompany elimination entries will be reversed in the consolidate ledger.

·        Create a custom report for consolidation of all balances under one consolidated legal entity.

 

Below are the steps for doing consolidation via FSG Process:

·        Creating a new legal entity/new company under the parent ledger.

·        Creation of row sets, column sets in FSG.

·        Mappings to be maintained under row set and column set for company, accounts etc.

·        Create a custom report for consolidation of all balances.

Benefits:

·        No need to run additional processes to consolidate unless ledgers have a different currency than the consolidation currency.

·        View the consolidated balances anytime. This cannot be done in the Balance Transfer Consolidation method because that method requires a balance transfer be done to achieve consolidation.

·        Faster close process.

 

3.      Consolidation Method - Hyperion:

Case 3 – Considering the new company as either a subsidiary ledger or a legal entity under the parent ledger.

Assuming that client is operating majorly in United States and having one parent ledger with USD currency and whenever a new company is added client considers that as either as a subsidiary ledger or a new legal entity with the COA structure and currency same and in sync with the parent ledger.

                                                       

Below are the steps for doing consolidation via Hyperion tool:

·        Connecting Oracle EBS general ledger module to Hyperion data base via FDM (Financial Data Quality Management) /ODI (Oracle Data Integrator).

·        Creating dimensions for capturing the data

·        Collecting and loading the data

·        Calculating and adjusting the data

·        Consolidating the data

·        Locking and publishing the data

Benefits:

 1) HFM is better than GCS in terms of tracking history of consolidation parameters, like entities and mappings that were used for consolidation purposes in the past

2) HFM is more visual, consequently it is easier to maintain, as you adapt your consolidation parameters to ever-changing needs

 3) HFM shares the data model with Hyperion Planning, which could be a tangible benefit if you plan on using HP for financial planning and modelling

 

 

 

 Oracle Credit Memo Bulk Application

In this post we will see how to create credit memo and do credit memo bulk application

1. Navigation-->Login into Oracle Fusion-->Go to Receivables offering-->Click on Billing option-->Click on task pane on the right side.

2. Create transaction with Invoice Class as 'Credit Memo' with the following information as I have entered it for a test purpose, you may fill the information you need to fill in for your case.

3. Now go the 'Accounts Receivables' option under Receivables offering.

4. Click on task pane on the task - Manage Credit Memo Application

5. Now you add your invoices by clicking on 'Add Open Receivables', fill in your amount as desired under applied amount and click on save. Your bulk application of credit memo will be done, now you can do the accounting.

6. Accounting will be reversed - Revenue Dr and Receivable Cr.

7. Invoice balance details will show credit memo applied and invoice reduced amount.

Bills Payables - Future Dated Payments

 A Bill Payable or future dated payment, instructs your bank to disburse funds to your supplier's bank on a specific date known as the maturity date.

The payment method that defaults onto the invoice or is entered in the invoice is what controls whether that invoice is paid as a bill payable. You can create bills payable using any payment method if it is enabled for bills payable creation.

Steps to create payment method:

1. Navigation - Setup and maintenance-->Financials-->Payables

2. Search for task - Manage Payment Methods

3. Create a payment method for Future Dated Payments and enable option 'Bills Payable'.

Once a payment method is defined with Bills Payable option checked, this is an example process for registering a future dated payment:
1. Create an invoice and set the payment method to be one that is enabled for Bills Payables. This is done in Manage Installments page for the invoice.
2. Create a payment with the same payment method. Set the Maturity Date (on the Advanced tab) as the date for the payment to take effect. After saving, payment status for these payments will be: Issued.

3. By submitting the 'Update Matured Bills Payable Status' program, if bill payable date is matured, then payment status will change from Issued to Negotiable.

Fixed Assets - Corporate Book and Tax Book

 Corporate Books hold all asset information and to post depreciation to the relevant General Ledger accordance with corporate policy and business practice.

Tax Books are used to retain information regarding the statutory rules for depreciating assets/fiscal rules and asset data is copied from the Corporate book on a regular basis excluding depreciation information. 

Multi-Fund Accounts Receivable

 Multi-fund is an optional accounting feature that lets you post invoices, receipts, debit memos, credit memos, and adjustments to multiple balancing segment values or funds.

A fund is a source of money. Public sector entities have multiple funds in a single transaction. For example - general operating fund, an endowment fund, and a gift fund and every fund has a different purpose and a different reporting requirement.

Many public sector entities must report the amount of cash that was deposited and disbursed by fund. To assist public sector organizations in meeting their reporting requirements, Oracle provides predefined application accounting definitions that can be assigned to the subledger accounting methods. The predefined accounting definitions used for multi-fund accounts receivable are:

• Multi-Fund Accrual - Account Method

• Multi-Fund Accrual - Balancing Method

These accounting definitions let agencies track receivables, receipts, and adjustments by fund. With multi-fund accounts receivable, you can:

• Post multiple matching revenue and receivables entries to many different operating funds

• Create matching cash receipts, adjustments, and discount journal entries against the receivables balances in all necessary operating funds

• Record revenue, tax, and freight in multiple funds within a single invoice

• Automatically record matching receivables balances in each corresponding fund

Important: For a multi-fund accounts receivable, you should first create accounting for the invoice and only after that for the receipt. This is because the receipt derives the CCIDs from the invoice.

Steps to use/enable this feature:

Enabling this feature can be achieved by performing following setups:

Setups:
======
1. Opting in this feature in Functional Setup Manager
2. Enabling the feature in Receivables System Options
3. Define Subledger Accounting Method for supporting the creation of detailed distributions

Step 1. Opting in this feature in Functional Setup Manager

a. From the Home page, go to My Enterprise > New Features
b. Go to Opt-In for Financials - Create Multifund Accounting
c. Enable "Create Detailed Receivables Distributions" feature
d. Click Done

Alternatively:

a. Go to My Enterprise > Offerings > Financials
b. Opt In: Financials > Customer Invoice Processing > Edit the Features
c. Search for Create Detailed Receivables Distributions - Enable the option

Step 2. Enable the feature in Receivables System Options

a. Setup and Maintenance> Manage Receivables System Options
b. Select the business unit that requires this feature.
c. From the ‘Edit System Options’ page, select ‘Enable multifund accounting’ in the Accounting section of the Billing and Revenue tabbed region. 

NOTE: On enabling this option, the Detailed Receivables Distributions feature becomes automatically applicable to this business unit and ALL other business units that share the same Ledger.
Once enabled this option cannot be reverted.  Because of this, a warning message is displayed before confirming the selection.  Choose ‘Yes’ to continue.

Step3. Define Subledger Accounting Method for supporting the creation of detailed distributions

a. Setup and Maintenance> select the task ‘Manage Implementation Projects’. 
b. Using the reference of an Implementation Project, search for the task ‘Manage Accounting Methods’ from the Receivables configuration. 
c. Then search for the predefined Accounting Method ‘Standard Accrual’ and duplicate it.
d. In the section for Journal Entry Rule Set Assignments for Receivables, delete the existing rule sets for Adjustment, Debit Memo, Credit Memo, Invoice, Miscellaneous Receipt and Receipt. 
e. Re-create these records using the predefined Rule Sets for Multifund Accounting, which are suffixed with the word ‘Multifund Accounting Balancing Method’.  Alternatively, you can create your own rule sets to address any specific accounting requirements.
f. Then activate the Accounting Method from Menu Actions > Change Status.

NOTE: Note that the predefined Journal Entry Rule Sets associated with the Accounting Method will have the default status as ‘Incomplete’.  On activating the Accounting Method, the corresponding Journal Entry Rule Sets will also be activated.

g. Associate this Accounting Method to the Ledger. Access the task ‘Specify Ledger Options’ using the reference of an Implementation Project. For this ledger, select the Accounting Method created for Multi-fund Accounting, in the section for Subledger Accounting.

Period Close Dependencies

A Simple Period Close Process. 

General Ledger Client Questionnaire.

S.No	Questionnaire for GL	Process type
1	What does your current chart of accounts look like.	Setup
2	Do you plan to have a new chart of accounts	Setup
3	Are your account values in any order or range pattern	Setup
4	What are the account parent or grandparent structures	Setup
5	Do you use unique accounts to capture statistics	Setup
6	Who is going to maintain the segment values once entered	Setup
7	Is there a need for a mapping from an old COA to a new COA	Setup
8	Are certain segment   values onlyy valid with specificother segment values	Setup
9	Do you use multiple currencies in your business	Setup
10	How many currencies do you use and what are they	Setup
11	What is your policy on changing currency rates	Process
12	What is the primary currency you have	Setup
13	Do you enter data in multiple currencies	Process
14	When is the beginning of your year	Setup
15	What is the period type. How many periods in a year.	Setup
16	Do all the companies have the same calendar	Setup
17	Do you have a naming convention for the periods	Setup
18	What accounting periods are in your quarters	Setup
19	How do you close an accounting period for Procurement	Process
20	Do you accrue your receipts to the General Ledger	Process
21	Does your company prepare budgets	Process
22	What types of budgets do you prepare  (for example, revenue & expenses, balance,     sheets, capital, project, and so on)	Process
23	Do your company’s key performance indicators drive the budgets	Process
24	How many budgets do you prepare for an individual fiscal year	Metric
25	Do you prepare more than one budget per Set of Books	Process
26	What is the range of accounting periods for each budget	Process
27	At what organization level (for example, cost center, division, or region) do you budget	Process
28	Do budgets require approval	Process
29	What levels of approvals are required for budgets	Process
30	How many budget "organizations" do you have	Metric
34	Will budget organization security be required in the future	Setup
36	At what account level do you currently budget	Process
37	Is your budgeting process centralized or decentralized	Setup
40	Do you require consolidated budgets	Setup
41	Are all budgets prepared in the same currency	Setup
42	Do you use Lotus, Excel, or another spreadsheet program to prepare budgets	Process
43	Which spreadsheet products and which version do/will you use	Setup
44	How do you close or "freeze" a budget once it is approved	Process
45	Is the process to close or "freeze" a budget once it is approved documented	Process
46	How long does it take to close or "freeze" a budget	Process
47	How long should it take to close or "freeze" a budget	Process
48	Is closing or "freezing" a budget a hard close or a soft close	Process
49	Who performs the tasks associated with closing or "freezing" the budget	Process
50	How are adjustments to closed periods and/or frozen budgets handled	Process
51	Are budgets altered frequently during the fiscal year	Process
52	Do you need to retain original (prerevision) budgets throughout the year	Setup
53	Is a budget download required to facilitate budget creation or maintenance	Setup
54	Do you derive any type of forecast from budgets	Setup
55	Does your company prepare financial forecasts	Process
56	What types of financial forecasts does your company prepare	Process
57	How do you prepare financial forecasts	Process
58	Is the financial forecasting process documented	Process
59	How long does it take to prepare financial forecasts	Process
60	How long should it take to prepare financial forecasts	Process
61	Are financial forecasts a hard or soft close	Process
62	Who performs the tasks associated with preparing financial forecasts	Process
63	How many forecasts do you prepare during an individual fiscal year	Metric
83	How do you maintain your Financial Reporting data	Process
84	How do you audit your Financial Reporting data	Process
85	Which operations/processes do you want to streamline for Financial Reporting	Process
86	Which operations/processes do you want to eliminate for Financial Reporting	Process
87	Are there any time-intensive Financial Reporting operations/processes that need to be addressed	Process
88	How do you close an accounting period for Financial Reporting	Process
89	Is the schedule to close an accounting period for Financial Reporting documented	Process
90	How long does it take to close an accounting period for Financial Reporting	Process
91	How long should it take to close an accounting period for Financial Reporting	Process