ORACLE FUSION ACCOUNTING HUB

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1 ORACLE FUSION ACCOUNTING HUB THE NEW STANDARD FOR FINANCIAL REPORTING AND INTEGRATION KEY FEATURES Reporting platform with embedded Essbase Centralized reporting center to deliver and access reports Proactive monitoring of account balances Centralized accounting engine Multiple accounting representations Sophisticated error handling Supporting references that track balances beyond the chart of accounts Transfer of accounting rules from test to production environments Multi-currency journals and multiple balancing segments Robust Allocations Engine KEY BENEFITS Gain real-time access to live financial data in a highly interactive environment Access reports any time in real-time Be notified of anomalies in balances as they occur Simplify issue resolution with process optimization Meet compliance requirements with single source of accounting truth for all external and legacy systems Oracle Fusion Accounting Hub (FAH) is an accounting integration and reporting platform that includes the following products: Subledger Accounting, Ledger, and Financial Reporting Center. FAH offers a flexible approach to system adoption, allowing customers to implement Fusion Financials in an evolutionary manner. As an accounting integration platform, FAH standardizes the accounting from multiple third party transactional systems to consistently enforce accounting policies and meet multiple reporting requirements in an automated and controlled fashion. As a reporting platform, FAH offers E- Business Suite and PeopleSoft customers exceptional reporting and analytics capabilities with minimal disruption to their current financial processes. Oracle Fusion Accounting Hub Delivers Value with Existing Investments Coexistence is the notion of having Oracle Applications exist with existing legacy applications or with Oracle s next generation Fusion Applications. Oracle Fusion Applications is designed to work alongside both non-oracle and Oracle systems without forcing customers to perform a full-scale upgrade. A key component of this coexistence strategy is Oracle Fusion Accounting Hub (FAH). FAH is both an accounting integration platform and a reporting platform, which can be used for either - or both - of these solutions. Accounting Integration Platform Delivers Consistent Accounting As an accounting integration platform, FAH integrates with non-oracle transactional systems to create accounting entries in Oracle general ledgers (e.g., Fusion, E-Business Suite, and PeopleSoft General Ledgers) or other non-oracle general ledger systems. The highly configurable and centralized rules engine transforms transaction information from third party systems to create accurate, detailed, and auditable accounting entries to meet statutory, corporate, regulatory, and management reporting needs. Store analytic information with accounting for reconciliation and reporting Maximize efficiency with an enterprise accounting rules engine Comply with multi-gaap accounting and industry accounting requirements Audit GL balances with journal details Figure 1: FAH s Accounting Integration Platform

2 ORACLE FUSION ACCOUNTING HUB PRODUCTS Oracle Fusion Accounting Hub is an accounting and reporting solution that includes the following products: Fusion Financial Reporting Center Fusion Ledger Fusion Subledger Accounting Fusion Legal Entity Configurator Fusion Financials Common Modules RELATED PRODUCTS Oracle Hyperion Data Relationship Management For customers that have high volumes of transactions from diverse industry applications, such as billing systems for telecommunications, core banking platforms, or claims systems for insurance, FAH can receive raw transaction information plus reference information and apply rules to create detailed accounting entries to meet virtually any accounting requirement. FAH includes a rules repository to centrally define and maintain accounting rules, a rules transformation engine to create, validate and store the accounting journals, and a detailed accounting repository that is used to reconcile to source systems. User Configurable Rules Offer Maximum Flexibility FAH offers maximum flexibility in generating accounting entries by allowing users to configure rules based on any attribute of a transaction. For example, a deferred revenue account can be broken out by different lines of business based on the nature of the revenue. No matter how many variations a company may have, users have complete flexibility in building every accounting entry. Below is an example of defining rules to build the subledger journal entry. Oracle Data Integrator Oracle GoldenGate Fusion Financials Fusion Analytics Fusion Governance, Risk and Compliance Oracle Enterprise Performance Management Figure 2: User Defined Journal Entry Rule to Build Journal Lines Business users can create accounting rules once and deploy them many times across different external and legacy systems. Changes in accounting regulations or corporate structures are quickly accommodated with effective dating of rules. An audit trail of the changes is preserved allowing a comparison between old and new versions of the rules. Rapidly Integrate New Systems Many organizations need to efficiently integrate new industry-specific systems or recently acquired companies into their existing environment. FAH implementations can be done gradually, reducing the implementation risk. Both journal pass-through solutions as well as raw transaction-based accounting solutions can be implemented. Customers can move from a pass-through solution to passing raw transaction data to create the necessary accounting. New systems can be added and new products can be launched while the system is in use. Store Additional Information beyond the Chart of Accounts Users can store balances based on business dimensions outside their chart of accounts using supporting references. In other words, supporting references extend the chart of accounts without cluttering the general ledger with unnecessary detail. For example, users can store balances based on geographies, channel, industry, investment type, fund manager or product category without including these key business dimensions in the chart of accounts. These balances are stored in the accounting repository, readily available for reporting and analytics. 2

3 Enhance Internal Controls and Auditability The centralized architecture of Oracle Fusion Accounting Hub enforces internal controls and successful audit and compliance reviews. Auditors and compliance officers can use the rules and accounting repositories as a basis for their engagements. The common accounting engine includes a robust collection of validations and balance and control routines. These validations are fully documented for complete transparency, a key requirement for Section 404 Sarbanes-Oxley compliance. Audit Trail from General Ledger Balances to Business Events Users can drill from their existing general ledger balances to the specific journal lines in the accounting repository that comprise that balance. Embedded bi-directional flows allow users to drill from journal lines either to the supporting business events and the accounting details. Unique Reporting Platform Delivers Information When Needed As a reporting platform, Oracle E-Business Suite and PeopleSoft customers can leverage Fusion Accounting Hub s exceptional reporting and analytics platform without disrupting their current financial processes, such as their credit to cash or procure to pay processes. This allows customers to leverage FAH s reporting ledger as their ledger of record to perform sophisticated reporting and analysis against real-time accounting information, with optional drilldown to the source transaction details. Figure 3: FAH s Reporting and Analytics Platform Oracle E-Business Suite and PeopleSoft customers can significantly improve financial reporting and information access with FAH s unique reporting platform that is embedded with Oracle Essbase, the market leading online analytical processing (OLAP) server. This allows large quantities of data to be quickly accessible and analyzed from different perspectives in a highly interactive way for intuitive and immediate decision support. Customers can also leverage the power of Hyperion Data Relationship Manager to synchronize changes to chart of accounts and hierarchies between Fusion and PeopleSoft or E-Business Suite financial systems. After programs transfer data from PeopleSoft and E-Business Suite ledgers to FAH s reporting ledger, all balances are automatically updated and pre-summarized at every possible summarization level, making reports, queries, and analytics very fast. All reports and queries work off the same up-to-the-minute, live data to ensure that all the roles in the company are making decisions based on the most relevant and accurate information. Central Report Center Provides Self-Service Access Users have self-service access to any live financial report they are authorized to view 3

4 complete with drilldowns to live transactions. The Oracle Fusion Financial Reporting Center provides a single access point to securely distribute and access reports defined in Fusion Accounting Hub, Fusion Financials, Hyperion Financial Reporting Studio or Hyperion Workspace. Figure 4. Oracle Fusion Financial Reporting Center Board quality financial statements and departmental reports, such as departmental expenses, can be viewed in the output of choice, such as HTML, PDF, and MS Office. CFOs can export financial statements to MS Office products, such as PowerPoint, Excel or Word, and then refresh results as needed from those desktop applications with a single click. Figure 5: Financial statement graph Self-Monitoring Accounts Alert Users to Exceptions Instead of running reports and performing online queries to check balances, FAH can proactively monitor account balances, and notify users of sudden spikes or drops based on user-defined thresholds. Users can view both current and comparative balances as well as the percentage change to assess whether the variance is favorable or unfavorable. To investigate the root cause of the exception, users can quickly drill down through multiple levels of hierarchies and summarized balances to the live transactions. Combined Accounting and Reporting Platform By choosing to employ the full capabilities of Oracle Fusion Accounting Hub as both an accounting and reporting platform, users get the benefits of integration with non-oracle transactional systems to create accounting entries in Oracle ledgers, together with powerful reporting and analytics against real-time accounting information, and optional drilldown to the source transaction details. 4

5 Figure 6: FAH Combined Accounting and Reporting Platform Oracle Fusion Accounting Hub offers a flexible approach to adopting Fusion Applications in the way that best complements a company s existing financial processes. Choose either the fully-guided Fusion Accounting Hub Standard Implementation using the Functional Setup Manager, or Fusion Accounting Hub for Rapid Implementation using a spreadsheet upload facility. Whichever option is preferred, setup is streamlined using a specific Task Grouping focused on FAH tasks. Oracle Fusion Applications Oracle Fusion Accounting Hub is part of Oracle Fusion Applications, which are completely open, standards-based enterprise applications that can be easily integrated into a serviceoriented architecture. Designed as a complete suite of modular applications, Oracle Fusion Applications help you improve performance, lower IT costs, and get better results. Whether you choose one module, a product family, or the entire suite, Oracle enables you to gain the benefits of Oracle Fusion Applications at a pace that matches your business needs. Contact Us For more information about Oracle Fusion Financials visit oracle.com or call ORACLE1 to speak to an Oracle representative. Copyright 2012, Oracle and/or its affiliates. All rights reserved. This document is provided for information purposes only and the contents hereof are subject to change without notice. This document is not warranted to be error-free, nor subject to any other warranties or conditions, whether expressed orally or implied in law, including implied warranties and conditions of merchantability or fitness for a particular purpose. We specifically disclaim any liability with respect to this document and no contractual obligations are formed either directly or indirectly by this document. This document may not be reproduced or transmitted in any form or by any means, electronic or mechanical, for any purpose, without our prior written permission. Oracle and Java are registered trademarks of Oracle and/or its affiliates. Other names may be trademarks of their respective owners. Intel and Intel Xeon are trademarks or registered trademarks of Intel Corporation. All SPARC trademarks are used under license and are trademarks or registered trademarks of SPARC International, Inc. AMD, Opteron, the AMD logo, and the AMD Opteron logo are trademarks or registered trademarks of Advanced Micro Devices. UNIX is a registered trademark licensed through X/Open Company, Ltd