104860

The Devil is in the details

Kevin Ott
Manager
Drill-to-detail reporting with
Accounting Hub Grant Thornton LLP
www.linkedin.com/in/kevin
-ott-GT2020

May 27, 2020

About Grant Thornton

Office locations People

56 offices spread across 30 More than 8,700
states and Washington D.C. professionals in the U.S.

Reach Partners
Serve 36% of companies on the 2019 606 partners serving more
Fortune 500 list and 24% of than 8,000 clients in the nation
companies on the Russell 2000 list

Our services Revenue

• Assurance • Tax • Advisory GT U.S. net revenue equals $1.95
billion

stats are as of 12/31/2019

Our Oracle Practice
Re-thinking reporting
Re-thinking reporting: Reporting strategy approach

Aligning the report (“what") with the tool (“how") and the data source (“where")
"WHAT" "HOW" "WHERE"

External financial statements Financial reporting studio GL data (Balances) PBC

Management reporting Narrative reporting GL data (Transactions) PCMCS

Variance reporting Smart view Subledger detail TRC

Transactional reports BI publisher FCC Relational DBs

Oracle Transactional BI
Ad-hoc analysis
(OTBI)
Re-thinking reporting: CoA segmentation strategy
Re-thinking reporting: EPM v. ERP
EPM applications are built upon dimensionality
One unique aspect of EPM products is that dimensions are simply values that get referenced within the data base structures – thus EVERY dimension value
must be unique within each EPM application.
To address this situation we have found that utilizing the same values in the ERP COA values and value sets leverages seamless integration to and from EPM
applications.
We typically do this using alphanumeric values in the ERP COA Value sets (thus prefixing each value to make it a unique 3, 4, 5 or however many character
value). The ERP COA fixed length for each value (i.e. dimension value) applies to upper level parent hierarchy members as well.
We leverage EDM to enforce uniqueness rules and character restrictions so that members are compatible for the Oracle Cloud GL and the EPM toolset.

Segment Sample values Details

Entity/Company E100, E101, E202 3 Digits plus Prefix E or C Key design guidelines
Division/Geography D10, D20, D99 2 Digits plus Prefix D • 1 Segment = 1 Meaning
Product Line P01, P11, P12 2 Digits plus Prefix of P or M • Hierarchies – alphanumeric values –
primary hierarchy, alphas for additional
Cost Ctr/Function C1000, C8010 4 Digits plus Prefix of C or F hierarchies
Account A11001, A12201, A62105 5 or 6 Digits plus Prefix of A • Avoid Leading Zeros (use alphanumeric
values)
Intercompany E100, E101, E202, E999 Same as Entity E999 is Non-I/C

Future-TBD N9999 5 Digits – single value for now

Accounting Hub
Accounting Hub: What is it?

Transactions Balanced journal entries

Test entry

Accounting Hub (AH) is an Oracle-provided toolbox that can take transactions

from a source system, and apply configure-able accounting rules to convert the
transactions into balanced journal entries in the general ledger
Accounting Hub: What is it?

Balanced journal entries Additional reporting fields

Test entry

In addition to converting transactions to journal entries, Accounting Hub(AH) can

also append additional fields to journal entries for reporting purposes. These
fields are called supporting references.
Accounting Hub: What is it?
• Creates accounting entries within GL
from external sources using easily
updatable rules and transformations
• Allows for drillback from general
ledger entries to source transactions
• Setup Accounting Hub “subledger(s)”
for external (Oracle or non-Oracle)
integrations
• Configure accounting rules for
incoming transactions
(mappings/filters/etc..)
• Define additional attributes that are
reportable via standard ERP reporting
(Policy #, Loan #, State, etc.
 Accounting Hub: Configuration background
Below is not a comprehensive list of setup steps, but are
meant to illustrate the setup functions that are done –
register, map, define JE

1. Register the application (the Source)

• Define transaction types (Invoice, Payment, Credit memo)
• Define header and line source columns

2. Create account rules and mapping sets

• Define the transformation of the data
• Sets the accounting

3. Configure journal entry rule sets

• Define the debit and credit side of each transaction
• Associate the account rules and mapping sets to each
column of the JE
• Define additional dimensions you want to define on the
transaction (Vendor)
Accounting Hub: Approach considerations
How much transformation should happen within Accounting Hub?

• Accounting Hub provides mapping and other transformation logic

• Often times the transactions have no accounting and it’s all derived

• Like other Cloud ERP integrations, the format for the import file IS SET

• Although Accounting Hub can reduce dependence on IT, it does not eliminate it
• Data must be extracted from the source system
• Data must be transformed into the standard importable format

• Best Practice: Formatting is done outside AH – getting the file in the correct format

• Best Practice: If the transformation is aligned to an accounting rule, attempt it inside

Accounting Hub
Use cases
Use cases: Overview
Use cases: Subsidiary GL on a different CoA
Source Transformation
Subledger containing a separate Map subledger CoA string
CoA* into Oracle CoA Result
Journals posted
Subsidiary

Account
Cost center at the detail
Subsidiary Subsidiary
account company
Entity level with state
Location related
Product
supporting
references for
Value add reporting
Mapping management and detail level reporting for tax
Use cases: Complex mapping requirements

Source Transformation Result

Large list of loan Map to Oracle GL using a
servicing specific fields segment-centric approach Central point of
for mapping mapping maintenance
Event Investor DOT Account for business users.
Event description
Adaptable to future
Investor Event Investor
Master Lender Loan
Tattoo
Cost
servicing system
dealer code type center
DOT changes due to use of
Master dealer Event Investor Entity event
LendercCode
Event Investor Location
Loan type
Product ID
Event Product ID DOT Product
Tattoo
Use cases: Complex mapping requirements

Mapping ranges of values

• Leveraging Accounting Hub to efficiently map ranges of source values to

a specific Oracle CoA segment as opposed to mapping each source Value add: Robust
value independently
mapping toolset to
Creating exceptions to the mapping sets manage complex
mapping
• Defining exceptions to the mappings where specific segment values use requirements
different source fields or use the existing mapping fields in a different
manner

Multi field mapping considerations

• Developing and maintaining mappings with a wide variety of fields

 Use cases: Operational data from external systems

Source Transformation
Operational system that does not include Take operational fields and determine what credit
any accounting information. Just fields to amount and debit amount need to be generated to
determine an event requiring an entry which accounts
Account Debit Credit
Product Processing Payment Producer
type type method Insurance receivable Retail price *
100%
HBPP N Customer NOT 29
Print or 15 Insurance payable Retail price *
60%
HBPP insurance Retail price *
commissions 40%

All accounting logic is automated and

Result contained within one central place for
business users to maintain as needed
 Use cases: Operational data from external systems

1 Define event(s) 2 Connect event to 3 Connect bundled events

leading to a specific amounts or and amounts to account Value add:
journal entry columns string
Provide a central
E999-L99999-A859999-C9999- interface for
Debit $699 P508-E999
business users
Event 1 to manage
Product=HBPP E999-L99999-A859999-C9999-
Processing =N Credit $419 P508-E999 accounting logic
Payment = CUS
Etc….
E999-L99999-A859999-C9999-
Credit $280 P508-E999
 Use cases: Serial acquirer
Source Transformation Result
Import format contains a Create conforming fields based Mappings for all sources
superset of all columns on usage of columns. Map to exist in one place for easy
Dynamics Dynamics segment based on subsidiary maintenance.
Sage IHMS
solomon great plains

Acct Account GLACCOUNT ACTNUMBR_1

Account
Cr/DrAMT Credit/Debit AMOUNT CRDTAMT
Amount
CpnyID Sub-account COMPANYCODE ACTNUMBR_3
Division
TranDesc TransactionDesc TRANSREMARK DSCRIPTN
Line description
… … … …
Use cases: Serial acquirer
1 New subsidiary 2
using an existing New subsidiary using a new system
system
Dynamics
IHMS QuickBooks Step 1: Add new fields to AH Value add:
Solomon

Sage
Dynamics Great
Plains
subledger so AH will import the One central
Field 1 fields
point for
Step 2: Update conforming
Field 2 fields so AH knows how to maintaining all
Simply update the mappings route the new fields mappings
with the new subsidiary. AH Field 3 Example: Account
already knows how to
integrate with existing Field 4
system
…
Key takeaways
Key takeaways

• Take a holistic approach to reporting

• Use the right reporting tools for the specific reporting requirement
• Think of Accounting Hub when a situation calls for:
• An accounting engine to aid in mapping, create credits/debits, etc.
• Enhanced accounting controls – rule updates, error handling, auditablity
• Expanded reporting of detail that is not in the primary CoA
Kevin.ott@us.gt.com

104860
 Don’t miss these insightful sessions
Wednesday, May 27 Friday, May 29

11:00 am–12:00 pm *Intercompany in the cloud: Maintaining 11:00am–12:00 pm *Around the world in 60 ledgers: A
the balance at Crowley Maritime look into ERP Global Ledger
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3:45–4:45 pm *The devil is in the details--drill-to-detail
Chris Maldonado-Martinez, Grant Thornton
reporting with Accounting Hub
Kevin Ott, Grant Thornton
Monday, June 8

5:00–6:00 pm *You don’t have to give up the world to move

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to E1 – Why you should upgrade to E1
Seth Chaikin, Grant Thornton and Angela Childs,
2:30–3:30 pm *Next level HR with HCM Experience Studio
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Tuesday, June 9

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