03b FinancialsDay1

Enterprise Structures
Sreeni Devireddy
Platform Technology Solutions
Oracle Development
Copyright © 2014, Oracle and/or its affiliates. All rights reserved. | Oracle Confidential – Internal/Restricted/Highly Restricted
Safe Harbor Statement
The following is intended to outline our general product direction. It is intended for
information purposes only, and may not be incorporated into any contract. It 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 described for Oracle’s products remains at the sole discretion of Oracle.
Copyright © 2014, Oracle and/or its affiliates. All rights reserved. | Oracle Confidential – Internal/Restricted/Highly Restricted 3
Agenda
1 Enterprise Structures
2 Reporting Structures
3 Ledgers
4 Rapid Setup
Agenda
3 Ledgers
4 Rapid Start
Axes
Copyright © 2014, Oracle and/or its affiliates. All rights reserved. |

Legal Axis – Legal Entity • Define a legal entity for each registered
company or other entity recognized in law for
which you want to record assets, liabilities,
expenses and income, pay transaction taxes, or
perform intercompany trading
• Required to publish specific and periodic
disclosures of your legal entities‘ operations
based on different jurisdictions' requirements
• Your legal entities can be identified as legal
employers and therefore, are available for use
in Human Capital Management (HCM)
applications
• Legal entities are mandatory

Enterprise Structures • Segregate multiple businesses by their strategic objectives and
Managerial Axis measure their results
• Companies may choose to represent product lines, brands, or
geographies as their divisions
• Divisions are optional and can be represented with a hierarchy of
cost centers or by a second balancing segment value
• Business Unit is an unit of an enterprise that performs one or many
business functions that can be rolled up in a management hierarchy
• Normally, it will have a manager, strategic objectives, a level of
autonomy, and responsibility for its profit and loss
• Use business units in the following ways:
– Management reporting
– Processing of transactions
– Security of transactional data
– Reference data definition and sharing
• When a business function produces financial transactions, a
business unit must be assigned to a primary ledger, and a default
legal entity

Functional Axis
• Department is an organization with one or
more operational objectives or
responsibilities that exist independently of
its manager
• Has one or more workers assigned to it
• Departments are mandatory because they
track your employees

Example

Example

Equivalence

Demo
Enterprise Setup
101 (East)
102 (West)
100 (US)
103
(North)
104
(South)
500 (HQ) 501 (HQ)

V (Corp)
200 (SSC) 201 (SSC)
300 (CA) 301 (CA)
400 (UK) 401 (UK)
Copyright © 2014, Oracle and/or its affiliates. All rights reserved. | 13

Demo
Legal Entity & Business Unit
Vision US LE Vision SSC LE Vision HQ LE Vision CA LE Vision UK LE
Vision US BU Vision HQ BU Vision CA BU Vision UK BU
Requisitioning Requisitioning Requisitioning Requisitioning

Receiving Receiving Receiving Receiving
Invoicing Invoicing Invoicing Invoicing
Procurement Procurement
Payment Payment
Collections Collections
Vision SSC BU
Procurement
Payment
Collections

Agenda
3 Ledgers
4 Rapid Setup
Reporting Structures
Example

Chart of Accounts
Structure
• Plan carefully to create an account structure that
Number of segments meets the current needs of your organization and
Segment sequence anticipates future requirements.
Segment names • Can create up to 30 segments with a maximum of
Segment prompts 25 characters per segment
Segment labels • Best practices recommend 5 to 9 segments
Default values sets • Limit maximum length of all segments plus the
segment separator. The maximum allowed is 240
characters

Chart of Accounts
Structure
Number of segments
Segment sequence
Segment names Company LoB Account Cost Center Intercompany
Segment prompts
Segment labels
Default values sets

Chart of Accounts
• Primary Balancing
Structure • Second Balancing
• Third Balancing
• Cost Center
Number of segments • Natural Account
• Intercompany
Segment sequence • The primary balancing segment label is required
Segment names • The second and third balancing segment labels are optional and may not be
Segment prompts necessary, unless, for example, you need to balance at more than the legal
entity level for management reporting
Segment labels • Best practices recommend that you assign specific balancing segment values
Default values sets to each legal entity in your accounting configuration
• If you use a balancing segment to represent legal entities, you should
represent all of your legal entities with values in that same balancing segment
• If you would like to create consolidated management reporting across legal
entities, you can use a single ledger to represent multiple legal entities
• Add a cost center segment if you plan to add Assets or Expenses in the future,
as the chart of accounts cannot be modified

Chart of Accounts
• Primary Balancing
Structure • Second Balancing
• Third Balancing
• Cost Center
Number of segments • Natural Account
• Intercompany
Segment sequence
Segment names
Segment prompts Primary Balancing Natural Account Intercompany
Segment labels Company LoB Account Cost Center
Cost Center
Intercompany
Second Balancing

Chart of Accounts
Structure
Number of segments
Segment sequence
Segment names
Company Value Set Account Value Set Company Value Set
Company LoB Account Cost Center Intercompany
Segment prompts LoB Value Set CC Value Set
Segment labels

Chart of Accounts
Structure Instance
• Is based on a COA Structure
• Inherits by default all the attributes of the chart of accounts structure
• All instances of the same structure share a common shape and have the same
segments in the same order
• However you can override the default value set assignments for your segments and
assign a unique account hierarchy

Chart of Accounts Important!
Structure Instance • Have a one to one
mapping between a chart
COA Structure of accounts structure and
instance
Company Value Set Account Value Set Company Value Set
Company LoB Account Cost Center Intercompany

• In other words, do not
have multiple instances
LoB Value Set CC Value Set
associated with the same
structure
COA Structure Instance - Corporate COA Structure Instance - Subsidiary

Account Value Set Account Subsidiary Value Set
Account Hierarchy Company Value Set Account Hierarchy Company Value Set
Company Value Set Company Value Set
Company LoB Account Cost Center Intercompany Company LoB Account Cost Center Intercompany
CC Value Set LoB Value Set CC Value Set

LoB Value Set
CC Management Hierarchy CC Geographical Hierarchy
Dynamic Insertion Disabled Dynamic Insertion Enabled

Chart of Accounts Company Value Set
Company LoB
Account Value Set
Account Cost Center

Company Value Set
Intercompany
Value Sets LoB Value Set CC Value Set
• Create (empty) value sets first, then add the sets to your structure / instance and then define the
values for the value set
• Share the same value sets across multiple charts of accounts to facilitate consolidation if the values
are the same and have the same meaning
• You must use independent validation and the data type of character for your chart of accounts value
sets.
• Remember security is enabled at the value set level and applies to all segments that use that value set
• If security rules are applied to the shared value set used for both the company and intercompany
segments, you can experience problems with intercompany values used to record transactions with
balancing segment values outside the values that are use for the legal entities in your ledger

Company LoB
Account Cost Center

Intercompany
Value Attributes LoB Value Set CC Value Set
• If you select Yes for Summary (Parent), the application does

not post to the accounts created using that value even if
Allow Posting is set to Yes.
• Account Type, Third Party Control Account, Reconcile, and
Financial Category attributes are only available on the
Natural Account segment values
• The Financial Category is a seeded list and you can add
additional values.
• Summary: Yes indicates this value is a parent value.
• Allow Posting: Enter Yes to enable posting to the account. If
set to No, you cannot post to the account
• Allow Budgeting: Enter Yes to perform budgeting for
accounts with this segment value. If you are defining a parent
segment value, you must enter No.

Company LoB
Account Cost Center

Intercompany
Value Attributes LoB Value Set CC Value Set
• Third Party Control Account

– Enter Customer, Supplier, or Yes for the Third Party
Control Account to designate the account as a Control
Account.
– Access to this account can be restricted to Oracle
Payables, Receivables, and Inventory, for which Subledger
Accounting automatically creates detailed balances.
– Do not specify the account as a control account if you
want to use the account for all Oracle Fusion
Applications.
– Restrict Manual Journal option prevents using the
account in manual GL journal entries, but allows the
account in manual subledger accounting journal entries.
• Reconcile: Enter Yes for Reconcile to allow reconciliation for
natural accounts that should balance to zero
• Financial Category: Used with Oracle Transaction Business
Intelligence reporting to further identify groups of accounts

Company LoB
Account Cost Center

Intercompany
Hierarchies LoB Value Set CC Value Set
• Create hierarchies (trees) to identify managerial, legal or

geographical relationships between your value set values
• A given segment can have multiple hierarchies and each
hierarchy can have multiple versions
• Define date effective tree versions to reflect organizational
changes within each hierarchy over time
• Create multiple hierarchies for different purposes
• Publish multiple hierarchies to balances cubes to allow for
financial reporting and analysis of past, present, or future
data

Company LoB
Account Cost Center

Intercompany
Hierarchies LoB Value Set CC Value Set
• Important!
• Always create at least two hierarchy versions before creating any financial reports or
allocations. This will force the fully qualified member name path to be generated and
refers to the full tree name and tree versions. This will minimize report maintenance
if you must add tree versions in the future
• Best Practices (Doc ID 1520970.1)

Chart of Accounts
• Securing a value set denies access to all values by default.
Security & Validations Create conditions and assign them to specific data roles to
control access to your segment values.
Account Combinations • Applies at the value set level. If a value set is secured, every
usage of the value set in a segment is secured
Segment Value Security
• Cross Validation Rules whether a value of a particular segment
Cross Validation Rules can be combined with specific values of other segments
• Use cross-validation rules in combination with dynamic
insertion
• Differs from segment validation, which controls the values you
can enter for a particular segment
• Revise cross-validation rules at any time, but remember that
they only prevent the creation of new invalid account
combinations
• Cross-validation rules do not affect existing accounts

Demo
Chart of Accounts

Agenda
3 Ledgers
4 Rapid Setup
Reporting Structures
Example

Ledgers
4C’s

Ledgers
Secondary Ledgers

Ledgers
Secondary Ledgers
• If the primary and secondary ledgers use different:
– Charts of accounts, the chart of accounts mapping (segment & account mapping
rules) is required to instruct the system how to propagate journals from the source to
the target chart of accounts
– Accounting calendars, the accounting date is used to determine the corresponding
non-adjusting period in the secondary ledger. The date mapping table provides the
correlation between dates and non-adjusting periods for each accounting calendar
– Ledger currencies, currency conversion rules are required to instruct the system on
how to convert the transactions, journals, or balances from the source representation
to the secondary ledger

Ledgers
Secondary Ledgers – Conversion levels
• Adjustments only secondary ledger is an
incomplete accounting representation that only
holds manual or automatic adjustment journal
entries from General Ledger or Oracle Fusion
Subledger Accounting
• This conversion level requires that the secondary
ledgers share the same chart of accounts,
accounting calendar, and currency with its primary
ledger
• A complete accounting representation is achieved
by creating a report that includes both the primary
and secondary ledger data together.

Ledgers
Reporting Currencies – Conversion levels
• Do not use journal or subledger level reporting

currencies if your organization only needs to
translate your financial statements to your parent
company's currency for consolidation purposes.
Standard translation functionality meets this need
• A full accounting representation of your primary
ledger is maintained at the subledger level
reporting currency
• Secondary ledgers cannot use subledger level
reporting currencies

Ledgers
Legder Sets
• Enables you to group multiple ledgers that
share the same chart of accounts and calendar
combination to increase the efficiency of your
period close, security administration, and
reporting
• Allows you to treat multiple ledgers as one
• For example, you can open and close periods
for multiple ledgers in a ledger set in a single
submission by submitting the new Open and
Close Periods programs from the Submit
Request form

Ledgers
Best Practices
• You should standardize on single corporate Chart of Accounts
• If you have global Chart of Accounts for all countries, you may use reporting
currencies rather than Secondary Ledgers
• If you need local statutory reporting plus corporate operational reporting, you can
use secondary ledgers to support a different COA
• If your ledgers share same COA and Calendar, you can group them into a Ledger Set
for shared operations (e.g., close, allocations, reporting etc)

Demo
Ledgers
101 (East)
102 (West)
100 (US)
103
(North)
104
(South)
500 (HQ) 501 (HQ)

V (Corp)
200 (SSC) 201 (SSC)
300 (CA) 301 (CA)
400 (UK) 401 (UK)

Agenda
3 Ledgers
4 Rapid Setup
Rapid Implementation for Fusion Financials
Why?
• A way to get customers live in the minimum amount of time
• Capture the absolute minimum amount of data required
• Use the 80/20 rule
• Default the most common options
• Hide complex and advanced set up
• Advanced configurations can be added later where required
• Also applicable for setting up Demos, Test envs., Conference Room Pilots, etc

Rapid Implementation Spreadsheets
Coverage
• Chart of Accounts, including value sets, value set values, structures and structure instances
• Account hierarchies, including trees and tree versions
• Accounting calendars
• Legal entities, including legal addresses, registrations, and identifiers
• Primary ledgers, with legal entity assignments to primary balancing segment values
• Business Units
• Account Defaulting
• Financial Sequences

Rapid Implementation Spreadsheets
Steps
– 1.Create Chart of Accounts, Ledger, Legal Entities, and Business Units in Spreadsheet
• Download the rapid implementation spreadsheet template.
• Populate the setup data and generate two zip files (ChartOfAccounts.zip and
FinancialsCommonEntities.zip)
– 2.Upload Chart of Accounts:
• Invoke the Create Enterprise Structure process from the Scheduled Process page
• Upload your first file, ChartOfAccounts.zip as parameter to the process
– 3.Deploy Chart of Accounts:
• Open the Manage Chart of Accounts Instance page.
• Select the chart of accounts and deploy the chart of accounts
– 4.Upload Ledger, Legal Entities, and Business Units:
• Invoke the Create Enterprise Structure process from the Scheduled Process page with the upload
data file as a parameter.
• Upload your second file, FinancialsCommonEntities.zip as parameter to the process

Rapid Implementation for Fusion Financials
Other Spreadsheets
• Account Code Combinations
• Cross Validation Rules
• Segment Value Security

Rapid Implementation
Demo

Fusion General Ledger
Sreeni Devireddy
Platform Technology Solutions
Oracle Development
Copyright © 2014, Oracle and/or its affiliates. All rights reserved. | Oracle Confidential – Internal/Restricted/Highly Restricted
Safe Harbor Statement
The following is intended to outline our general product direction. It is intended for
information purposes only, and may not be incorporated into any contract. It 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 described for Oracle’s products remains at the sole discretion of Oracle.
Agenda
1 Balances Cube
2 Consolidations
3 Close Monitor
4 Reference Data Sets
Agenda
1 Balances Cube
2 Consolidations
3 Close Monitor
Balances Cube
Overview
• Consists of a set of defining business
entities called dimensions
• Created automatically when an
accounting configuration is submitted
for a ledger
• Stores your financial balances in a
multidimensional model to enable
interactive financial reporting and
analysis
• Pre-aggregates your balances at every
possible point of summarization,
ensuring access to financial data and
eliminating the need for an external data
warehouse
• Is automatically updated by the
following general ledger processes:
posting, open period, and translation

Balances Cube
GL Architecture

Balances Cube
Posting Program
• The Posting program is in charge of updating the balances in the cube to keep the
information between the GL_BALANCES table and the cube in sync.
• A cube gets created per combination of Chart of Accounts (COA) and Calendar
• If a ledger is ADB-enabled, then an additional average balances cube gets created
to hold the average balances.
• Posting needs to update both cubes in case of an ADB ledger
• In the unlikely event that the GL_BALANCES table and the cube become out of
sync, it will be necessary to run the Refresh Balances program which transfers the
balances from GL_BALANCES to the cube and makes them in sync

Balances Cubes
Dimensions

Financial Reporting
Reporting Center

Agenda
1 Balances Cube
2 Consolidations
3 Close Monitor
Consolidations
Methods

Consolidations
Reporting Only
• Group the ledgers in a ledger set. This assumes

the ledgers share the same chart of accounts
and calendar
• Translate balances to the corporate currency
for ledgers not in the corporate currency
• Create eliminating entries
• Report using the ledger set and the corporate
currency as reporting parameters to view the
consolidated balances
* Same Calendars

Consolidations
Balance Transfer • Translate balances to the corporate currency
for ledgers not in the corporate currency
• Create a chart of accounts mapping to map
subsidiaries account values to the corporate
chart of accounts.
• Transfer balances from the subsidiaries to the
corporate consolidation ledger using Run the
Transfer Balances Cross Ledgers process
• Create eliminating entries using journal entries
or the Calculation Manager in the corporate
consolidation ledger
• Generate a report on the consolidated
balances net of eliminations in the corporate
consolidation ledger
* Different Calendars

Agenda
1 Balances Cube
2 Consolidations
3 Close Monitor
Close Monitor
Key Features
• Whitepaper : https://cloud.oracle.com/_downloads/WhitePaper_Financials_PeriodClose/oracle-erp-cloud-period-close-whitepaper.pdf

Agenda
1 Balances Cube
2 Consolidations
3 Close Monitor
Sharing Setup Data
EBS – OU based partitioning for transactional and reference data
Reference
Data
Operating Unit
Transactional
Data
OU Partitioned Tables
Sharing Setup Data
Fusion - Separation of Reference Data from Organizational Partition
Reference Data Set Partitioned Tables
Reference Reference
Data Data Set
Operating Unit Partitioned Tables
Transactional Business Unit

Data
Reference Data Sets
Example – Receivables Payment Terms [in EBS…]
Net 30 US1 OU
US1 OU Net 30, Net 15
Net 15 US1 OU
US2 OU Net 30, Net 15 Net 30 US2 OU
Net 15 US2 OU
UK OU Net 30, Net 20 Net 30 UK OU
Net 20 UK OU
CA OU Net 30 Net 30 CA OU

Reference Data Sets
Example – Receivables Payment Terms [in Fusion…]
US1 BU Net 30, Net 15 Receivables Payment Terms

US1 BU Set = US Set
Net 30 Common Set
Receivables Payment Terms
US2 BU Net 30, Net 15 US2 BU Set = US Set
Net 15 US Set

UK BU Net 30, Net 20 Net 20 UK Set UK BU Set = UK Set

CA BU Set = Common Set
CA BU Net 30

Reference Data Sets
Determinant Type
• The point of reference used in the data assignment process. You can
share the partitioned reference data based on a business context
setting called the determinant type
– Business Unit
– Asset Book
– Cost Organization
– Project Unit

Reference Data Sets
Sharing Methods
• Assignment to one set only, no common values allowed
– For example, Asset Prorate Conventions are defined and assigned to only one reference data set. This set can
be shared across multiple asset books, but all the values are contained only in this one set.
• Assignment to one set only, with common values
– For example, Receivables Transaction Types are assigned to a common set that is available to all the business
units without the need to be explicitly assigned the transaction types to each business unit. In addition, you
can assign a business unit specific set of transaction types. At transaction entry, the list of values for
transaction types includes transaction types from the set assigned to the business unit, as well as transaction
types assigned to the common set that is shared across all business units.
• Assignment to multiple sets, no common values allowed
– For instance, Payables Payment Terms use this method. It means that each payment term can be assigned to
one or more than one set. For example, you assign the payment term Net 30 to several sets, but the
payment term Net 15 is assigned to only your corporate business unit specific set. At transaction entry, the
list of values for payment terms consists of only one set of data; the set that is assigned to the transaction's
business unit.

Reference Data Sets
Shared Objects

Reference Data Sets
Shared Objects

Reference Data Sets
Example – Payables Payment Terms
US1 BU Net 30, Net 15 US Set Payables Payment Terms

US1 BU Set = US Set
Net 30 UK Set
CA Set Payables Payment Terms

US2 BU Net 30, Net 15 US2 BU Set = US Set
Net 15 US Set
Payables Payment Terms
UK BU Net 30, Net 20 UK BU Set = UK Set
Net 20 UK Set
Payables Payment Terms
CA BU Set = CA Set
CA BU Net 30

Demo
Reference Data Sets

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Enterprise Structures

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. |

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. |

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. |

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. |

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. |

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. |

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. |

500 (HQ) 501 (HQ)

200 (SSC) 201 (SSC)

300 (CA) 301 (CA)

400 (UK) 401 (UK)

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. | 13

Vision US LE Vision SSC LE Vision HQ LE Vision CA LE Vision UK LE

Vision US BU Vision HQ BU Vision CA BU Vision UK BU

Requisitioning Requisitioning Requisitioning Requisitioning

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. | 14

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. |

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. |

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. |

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. |

Segment labels Company LoB Account Cost Center

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. |

Company LoB Account Cost Center Intercompany

Segment prompts LoB Value Set CC Value Set

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. |

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. |

Company LoB Account Cost Center Intercompany

COA Structure Instance - Corporate COA Structure Instance - Subsidiary

CC Value Set LoB Value Set CC Value Set

Dynamic Insertion Disabled Dynamic Insertion Enabled

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. |

Account Cost Center

Value Sets LoB Value Set CC Value Set

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. |

Account Cost Center

Value Attributes LoB Value Set CC Value Set

• If you select Yes for Summary (Parent), the application does

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. |

Account Cost Center

Value Attributes LoB Value Set CC Value Set

• Third Party Control Account

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. |

Account Cost Center

Hierarchies LoB Value Set CC Value Set

• Create hierarchies (trees) to identify managerial, legal or

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. |

Account Cost Center

Hierarchies LoB Value Set CC Value Set

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Copyright © 2014, Oracle and/or its affiliates. All rights reserved. |

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Copyright © 2014, Oracle and/or its affiliates. All rights reserved. |

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. |

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. |

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. |

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. |

• Do not use journal or subledger level reporting

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. |

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. |

Copyright © 2014, Oracle and/or its affiliates. All rights reserved. |

500 (HQ) 501 (HQ)

200 (SSC) 201 (SSC)