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Business Accounting in
Financial Accounting Hub
(FAH)
Presenter: Sanjay Prasad
Principal Software Engineer

Global E-Business
Suite Support
 Agenda

Challenges In Business Accounting

Fitment Of Oracle Financial Accounting Hub (FAH)

Case Study

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 Challenges In Business
Accounting

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 Challenges

Source Systems Finance

Transactional Legacy Local Accounting
Systems Reporting
Generic Business Global Accounting
Operation Legacy Reporting
Systems Management
Accounting
Reporting

Disparate Systems Feed to General Ledger

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 Challenges

Source Systems Finance

Transactional Legacy Local Accounting
Systems Reporting
Global Accounting
Reporting
Generic Business Management
Operations Accounting
Legacy Systems Reporting

Accounting Change
Change To Be Incorporated In Many Systems
Long Testing Cycles
Slow Implementation

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 Banking Industry Example- Management Level
Information
ABC Bank From India ABC Bank Acquires XYZ bank of
Industry Specific Legacy System Dubai
Teller, ibanking, Deposits, Industry Specific Legacy System
Loans etc. Teller, ibanking, Deposits,
Generic Business Operation Loans etc.
legacy System Generic Business Operation
Payables, Receivables, legacy System
General Ledger etc. Payables, Receivables,
General Ledger etc.

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 Existing IT System

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 Teller System India Operation of ABC Bank
Dr
Loan System Cr
Dr Financial
Dr Cr
General Ledger Reporting
Deposit System Cr
Dr
Cr
CC System Dr
Dr
Cr
Cr
Payables System

Receivables System

Teller System Dubai Operation of ABC Bank

Dr
Cr
iBanking System Dr
Cr Financial
Dr General Ledger Reporting
Deposit System Cr
Dr
Dr
Cr
Cr
Payables System

Receivables System

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 Teller System India Operation of ABC Bank
Dr
Loan System Cr
Dr Financial
Dr Cr
General Ledger Reporting
Deposit System Cr
Dr
Cr
CC System Dr
Dr
Cr
Cr Consolidation
Payables System
Multiple Representation
Receivables System Enforce Corporate Wide Accounting Standard

Teller System Dubai Operation of ABC Bank

Dr
Cr
iBanking System Dr
Cr Financial
Dr General Ledger Reporting
Deposit System Cr
Dr
Dr
Cr
Cr
Payables System

Receivables System

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 Teller System India Operation of ABC Bank
Dr
Loan System Cr
Dr Financial
Dr Cr
General Ledger Reporting
Deposit System Cr
Dr
Cr
CC System Dr
Dr
Cr
Cr
Payables System

Receivables System Change in Accounting Rules

Teller System Dubai Operation of ABC Bank

Dr
Cr
iBanking System Dr
Cr Financial
Dr General Ledger Reporting
Deposit System Cr
Dr
Dr
Cr
Cr
Payables System

Receivables System

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 Challenges

Enforcing Corporate Wide Standard

Multiple Representation Of Accounting

Change In Accounting Need

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 Fitment of Oracle FAH

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 FAH Key Features

Centralized Accounting

Rule Based Accounting Engine

Multiple Representation of Accounting

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 India Operation of ABC Bank R12 E Business Suite

Teller System Corporate

Payables System
Financial
Loan System Reporting
Corporate Standard
Dr
CC System Cr

General Ledger
Local Standard Local
Deposit System Dr Financial
FAH Cr
Reporting
Global Standard
Dubai Operation of ABC Bank
Dr
Cr
Global
Teller System Financial
Reporting
iBanking System
Receivables Other Oracle
System Modules
Deposit System

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 How FAH Can Be Helpful

Rapidly Integrate To New System

Quickly Update Accounting Rules To Meet New Requirements
Represent Different Accounting For Single Source Of Data
Single Source Of Accounting Truth

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 Case Study

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 Case Study

Business Case Mapping

Demo Of FAH Features
Rapidly Integrate To New System
Multiple Representation of Accounting
Quickly Update Accounting Rules To Meet New Requirements

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 Ledger Architecture

India Primary
Ledger

5 Segment Chart of Account

(COA) Currency Calendar
Company.Branch.Account. : INR : Monthly
SubAccount.Product New
Subledger
Accounting
Method
(SLAM) 5 Segment Chart of Account
3 Segment Chart of Account
Currency Calendar (COA) Currency Calendar
(COA)
: AED : Monthly Company.Branch.Account. : INR : Monthly
Company.Branch.Account
SubAccount.Product

Dubai Primary Dubai Secondary

Ledger Ledger

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 Seamless Data Flow
India Local
Financial
Reporting
CR
India Primary
DR Ledger
India Operation Legacy Consolidated
Systems Financial

Transaction Table

(New SLAM)
Reporting

FAH
CR Dubai Secondary
DR
Ledger

Dubai Operation Legacy Dubai Local

Systems CR Dubai Primary Financial
DR
Ledger Reporting

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 India Operation Business Data

India Operation- Data in FAH Transaction Tables

Mumbai Branch
Header Table

Deposit Legacy System Activities DEP-INDIA-MUMBAI

Line table
NEW- 400000
New Fixed Deposits (FD)- 4,00,000 INR

INT- 5000
Interest Accrued on (FD)- 5,000 INR

FD Paid on Maturity- 54,500 INR CLS-54500-50000-4500

(Principal 50,000 INR
Interest 4500 INR)

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 India Operation Expected Accounting
Data in FAH Transaction Tables
Header Table
DEP-INDIA- MUMBAI FD-CASH Dr. 01 003 1111 0000 000 400000

FD-PRINCIPAL Cr. 01 003 1226 0000 000 400000

Line table

NEW- 400000

FD-INTEREST Dr. 01 003 1228 0000 000 5000

INT- 5000 ACCRUED-INT Cr. 01 003 1229 0000 000 5000

CLS-54500-50000-4500
PRINCIPAL-PAID Dr. 01 003 1226 0000 000 50000

INTEREST-PAID Dr. 01 003 1227 0000 000 4500

FD-CASH Cr. 01 003 1111 0000 000 54500

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 Dubai Operation Business Data

Dubai Operation- Data in FAH Transaction Tables

Dubai Branch
Header Table

Deposit Legacy System Activities DEP-DUBAI-DUBAI

Line table
NEW- 80000
New Fixed Deposits (FD)- 80,0000 AED

INT- 600
Interest Accrued on (FD)- 600 AED

FD Paid on Maturity- 8,430 AED CLS-8430-8000-430

(Principal 8,000 AED
Interest 430 AED)

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 Dubai Operation Expected Accounting-Primary Ledger
Data in FAH Transaction Tables
Header Table
DEP-DUBAI- DUBAI FD-CASH Dr. 02 600 1111 80000

FD-PRINCIPAL Cr. 02 600 1226 80000

Line table

NEW- 80000

FD-INTEREST Dr. 02 600 1228 600

INT- 600 ACCRUED-INT Cr. 02 600 1229 600

CLS-8430-8000-430
PRINCIPAL-PAID Dr. 02 600 1226 8000

INTEREST-PAID Dr. 02 600 1227 430

FD-CASH Cr. 02 600 1111 8430

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 Dubai Operation Expected Accounting-Secondary Ledger
Data in FAH Transaction Tables
Header Table
DEP-DUBAI- DUBAI FD-CASH Dr. 02 600 1111 0000 000 80000*2=160000

FD-PRINCIPAL Cr. 02 600 1226 0000 000 80000*2=160000

Line table

NEW- 80000

FD-INTEREST Dr. 02 600 1228 0000 000 600*2=1200

INT- 600 ACCRUED-INT Cr. 02 600 1229 0000 000 600*2=1200

CLS-8430-8000-430
PRINCIPAL-PAID Dr. 02 600 1226 0000 000 8000*2=16000

INTEREST-PAID Dr. 02 600 1227 0000 000 430*2=860

FD-CASH Cr. 02 600 1111 0000 000 8430*2=16860

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 Case Study

Business Case Mapping

Demo Of FAH Features
Rapidly Integrate To New System
Multiple Representation of Accounting
Quickly Update Accounting Rules To Meet New Requirements

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 Steps to Integrate to Third Party Software

Register Banking Application in Application Developer

Create SLA Responsibility in System Administrator
Define Journal Source and Category in General Ledger
Define Transaction Table and View
Setup in FAH

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 Setup in FAH

Define
Event Model
Accounting Event Option
Journal Line Types (JLT)
Journal Lines Definition (JLD)
Application Accounting Definition (AAD)
Subledger Accounting Method (SLAM)
Doc ID 1465987.1, Accounting for Transactions from a Custom Application
Using R12 FAH

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 Register New Application

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 Define Transaction Tables

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 Define Subledger Application

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 Define Event Model

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 Define Event Model

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 Define Journal Line Types (JLTs)

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 Define Journal Line Types (JLTs) Contd..

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 Define Journal Line Definition (JLD)

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 Define JLD Contd..

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 Define JLD Contd..

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 Define AAD

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 Define Subledger Accounting Method (SLAM)

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 Attach SLAM to Respective Ledgers

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 Populate Data in Transaction Tables
Transaction Data in Header Table

HD_ID TXN_TYPE TXN_SUBTYPE_1 LEGACY_ID TXN_DATE GL_DATE TXN_PARTY_1 TXN_PARTY_2 LEDGER_ID

1000 DEPOSIT FD 100 31-Jan-14 31-Jan-2014 IND MUMBAI 1040

Transaction Data in Line Table

HD_ID LEDGER_ID DIST_ID_1 ENTERED_AMOUNT ENTERED_CURRENCY ENTERED_AMOUNT_1 LN_ID_1 ENTERED_AMOUNT_2
1000 1040 1 -54500 INR 4500 CLS 50000
1000 1040 2 400000 INR 0 NEW 0
1000 1040 3 5000 INR 0 INT 0

Run Concurrent Program Calling Public API

XLA_EVENTS_PUB_PKG.CREATE_BULK_EVENTS() to Create and
Populate Accounting Events

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 Run Create Accounting

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 Accounting Created

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 Case Study

Business Case Mapping

Demo Of FAH Features
Rapidly Integrate To New System
Multiple Representation of Accounting
Quickly Update Accounting Rules To Meet New Requirements

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 Populate Data in Transaction Tables
Transaction Data in Header Table

HD_ID TXN_TYPE TXN_SUBTYPE_1 LEGACY_ID TXN_DATE GL_DATE TXN_PARTY_1 TXN_PARTY_2 LEDGER_ID

1020 DEPOSIT FD 1000 31-Jan-14 31-Jan-2014 DUB DUBAI 1043

Transaction Data in Line Table

HD_ID LEDGER_ID DIST_ID_1 ENTERED_AMOUNT ENTERED_CURRENCY ENTERED_AMOUNT_1 LN_ID_1 ENTERED_AMOUNT_2
1020 1043 1 -8430 AED 430 CLS 8000
1020 1043 2 80000 AED 0 NEW 0
1020 1043 3 600 AED 0 INT 0

Run Concurrent Program Calling Public API

XLA_EVENTS_PUB_PKG.CREATE_BULK_EVENTS() to Create and
Populate Accounting Events

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 Run Create Accounting

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 Accounting Created

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 Accounting Created Contd..

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 Accounting Created Contd..

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 Accounting Created Contd..

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 Case Study

Business Case Mapping

Demo Of FAH Features
Rapidly Integrate To New System
Multiple representation of Accounting
Quickly Update Accounting Rules To Meet New Requirements

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 Change in Business Requirement

India Operations Opens a New Bank Branch in Chennai

Legacy System Stores the Branch Code as CHENNAI
A New Branch Code 004 is Decided to be Opened for Chennai
Branch
Business Expectation: FAH should be able to Quickly Incorporate
the New Branch in E Business Suite

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 Update Mapping Set for Bank Branch in FAH

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 Update Bank Branch Mapping in GL

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 Validate Respective AAD

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 Validate Respective AAD Contd..

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 Populate Data in Transaction Tables
Transaction Data in Header Table

HD_ID TXN_TYPE TXN_SUBTYPE_1 LEGACY_ID TXN_DATE GL_DATE TXN_PARTY_1 TXN_PARTY_2 LEDGER_ID

1040 DEPOSIT FD 2000 31-Jan-14 31-Jan-2014 IND CHENNAI 1040

Transaction Data in Line Table

HD_ID LEDGER_ID DIST_ID_1 ENTERED_AMOUNT ENTERED_CURRENCY ENTERED_AMOUNT_1 LN_ID_1 ENTERED_AMOUNT_2
1040 1040 1 -54500 INR 4500 CLS 50000
1040 1040 2 400000 INR 0 NEW 0
1040 1040 3 5000 INR 0 INT 0

Run Concurrent Program Calling Public API

XLA_EVENTS_PUB_PKG.CREATE_BULK_EVENTS() to Create and
Populate Accounting Events

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 Run Create Accounting

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 Accounting Created

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 Summary

Accounting Challenges
Fitment of FAH
FAH Features
Quickly Integrate to New System
Multiple Representation of Accounting
Quickly Configure Change in Accounting Need

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 Questions & Answers

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