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Fusion Financials Common Setup

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Agenda – Fusion Financials Common Setup

Cloud Financials Overview
Functional Setup Manager
Defining Enterprise Structures
Defining Geographies
Defining Legal Jurisdictions and Authorities
Managing Legal Entities
Managing Legal Reporting Units
Define Calendar
Define Chart of Accounts
GL Rapid Implementation
Define Currency and Daily Rates
Cross-Validation Rule
Define Roles, GL Security
Define Ledger
Managing Business Units
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Cloud Overview
On-Premises: Hardware, software licenses, and support that
you buy and host at one or more of your sites.
Public Cloud: Services are available to the general public and
offered on a subscription basis, with no requirements to buy
additional licenses or support. The services are hosted over
the Internet by Oracle or Oracle business partners that offer
business process outsourcing (BPO) solutions.
Private Cloud: Application-managed and technology-managed
services that are offered for Oracle software and hardware,
are available internally behind a firewall, and are hosted over
the Internet by Oracle or Oracle business partners that offer
BPO solutions.
Hybrid: Combinations you select including maintaining some
or all of your existing legacy applications on-premises and
buying additional products that are hosted on the private or
public cloud.
Scalability , Multi Tenancy and Metered Service
Metered Services are a Pre-paid offering, also referred to as "a-la-carte" or "committed" offerings. A Metered
cloud service like Java Cloud Service (JCS) or Database Cloud Service (DBCS) is where you are charged based on
the actual usage of the service resources on an hourly or monthly basis.
Non-metered Services are a subscription based offering, also referred to as "standard subscription" or "un-
committed" offerings. A Non-metered service is essentially a monthly or annual subscription for a fixed service
configuration which you typically cannot change. If a service is Non-metered it means that we sell it in well-
known sizes or fixed configurations, let's say small, medium and large.

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Initial Steps

• Log in as the user assigned to

you, such as FINUSER
• Navigate from the Home page:
Setup and Maintenance > Click
the Manage Implementation
Projects link.

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Layout of Fusion Screen

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Assignments

Create your own Implementation Project in FSM:

• Create an Implementation Project and Configure Offerings for “Financials”

- Please use you the convention <SDH_FIN Impl Project>
SDH – First Letter of First Name and First two letters of Surname

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Enterprise Structure

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Enterprise Structure

Relation between Ledger Legal Entity and Business Units

Legal Entity 1
BU1

Prim Ledger Legal Entity 2

BU2

Secondary
Ledger Legal Entity 3

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Define Geographies

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Legal Entity
1. Expand the following: Financials > Define Common Applications Configuration for Financials > Define Enterprise
Structures for Financials > Define Legal Jurisdictions and Authorities for Financials.

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Legal Entity HCM Information

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Legal Entity Authority and Jurisdictions

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Legal Entity Authority and Jurisdictions

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Legal Entity Reporting Unit and Registration

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Concepts of Calendar
Budgetary Control Only Check Box
• Budgetary Control refers to the group of system options and the validation process of determining
which transactions are subject to validation against budgets and budget consumption to prevent
overspending.
Start Date
• If you plan to run translation, specify a calendar start date that is a full year before the start date of
the year of the first translation period for your ledger. Translation cannot be run in the first period of a
calendar.
Period Frequency
• Use period frequency to set the interval for each subsequent period to occur, for example, monthly,
quarterly, or yearly.
Adjusting Period Frequency
• Use the adjusting period frequency to control when the application creates adjusting periods.
Period Name Format Region
In the Period Name Format region enter the following fields:
User-Defined Prefix: An optional feature that allows you to enter your own prefix. For example,
define a weekly calendar and then enter a prefix of Week, - as the separator, and the period name
format of Period number YY fiscal year. The application creates the names of Week1-11, Week2-11,
through Week52-11.
Format: A predefined list of values filtered on the selected separator and only displays the options
that match the selected separator.
Year: The year displayed in the period names is based on the selected period name format and the
dates the period covers or if the period crosses years, on the year of the start date of the period.

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Define Calendar

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Charts of Accounts
In Fusion General Ledger, the chart of accounts model is framed around the concept of a chart of accounts structure, under which one or
more chart of accounts structure instances can be created. A chart of accounts structure defines the key attributes for your chart of accounts,
such as the number of segments, the segment sequences, the segment names, segment prompts, segment labels (e.g. natural account,
primary balancing) and default value set. A chart of accounts structure can be shared across different chart of accounts structure instances.
In Fusion General Ledger, organizations may use up to 3 balancing segments in their chart of accounts structures: primary balancing segment
(required) second and third balancing segments (optional).
Note: Chart of accounts structure needs at least two mandatory segments : (1) Balancing Segment (2) Natural Account.

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Define CoA Setup – Mandatory Setups

1- Create your value sets. A value set can be shared by different charts of
accounts, or across different segments of the same chart of accounts.
2- Create your chart of accounts structure.
3- Create your chart of accounts structure instance.
4- Create your value set values, both detail and parent values, for each of your
COA segments.

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Define CoA Setup – Rapid Spreadsheet

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Assignments

Create your own Chart Of Accounts thru Rapid Spreadsheet:

High Level Steps:

• Under your Implementation Project, add a Task by searching %Rapid%Common%
• Download the Rapid Spreadsheet
• Fill in the CoA and Genarate the zip file
• Upload your CoA
• Review the Load

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Define Daily Rate Types

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Define Daily Rates

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Define Daily Rates – Rapid Spreadsheet

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Define Roles

There are two type of users, Implementation User and Employee Users. Impelementation Users cannot create a Purchase Order or Pay an
invoice.
Implementation Users are created from Oracle Identity Manager (OIM). Pre-req to Employees Legal Entity> Legal Employer>Employee>User>
Assign Roles
Roles:
Job Role – Much Responsibilities – a Job Role could be AP Supervisor or Payment Clerk
Duty Role – Much like Sub Menu/ Forms/Functions – Reconcilation , Making Payment Runs
Data Role – Restrict to which Business Unit
Abstract Role – Employee is a Abstract Role

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Define Roles - GL

Job Role Description

Financial Analyst Analyzes the financial performance of an enterprise or
an organization within an enterprise. Account Analysis,
Budget Analysis etc.
General Accountant Records and reports financial transactions and
manages revenue, expense, asset, liability
and equity accounts. Responsible for recording
accounting adjustments, accruals,
allocations, currency revaluations and translations.
General Accounting Manager Manages the general accounting functions of an
enterprise including general ledger, Accounting period
close, subsidiary ledgers, and cost accounting.

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General Ledger Security

General ledger functions and data are secured through job roles, data access sets,
and segment value security rules.

Functional Security
Functional security, which is what you can do, is managed using job roles. The
following job roles are predefined for Oracle Fusion General Ledger:
General Accounting Manager
General Accountant
Financial Analyst

Data Security
Data security, which controls what action can be taken against which data, is
managed using:
Data access sets
Segment value security rules

Segment value security rules control access to data that is tagged with the value set
values associated with any segment in your chart of accounts.

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Data Security

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Security Rules
To define segment value security roles:
• Create segment value security roles.
• Enable security on the value set.
• Note: You can enable security only on values sets with a type of Independent.
• Create conditions for the rule.
• Create policies to associate the conditions with the role.
• Deploy the accounting flexfield.
• Publish the account hierarchies.
• Assign the role to users.

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Cross Validation Rules - Setup

You can use cross-validation rules to determine the valid account combinations that
can be dynamically created as users enter transactions or journal entries.

For example, your organization has determined that no entries should be booked for
the cost centre “COE Office” on UK entity.

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Cross Validation Rules

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Define Ledger – Concepts

Primary Ledgers
A primary ledger is the main record-keeping ledger. Create a primary ledger by
combining a chart of accounts, accounting calendar, ledger currency, and accounting
method. To determine the number of primary ledgers, your enterprise structure
analysis must begin with determining financial, legal, and management reporting
requirements. For example, if your company has separate subsidiaries in several
countries worldwide, create multiple primary ledgers representing each country with
the local currency, chart of accounts, calendar, and accounting method to enable
reporting to each country's legal authorities.
Secondary Ledgers
A secondary ledger is an optional ledger linked to a primary ledger. A secondary
ledger can differ from its related primary ledger in chart of accounts, accounting
calendar, currency, accounting method, or ledger processing options.
Reporting Currencies
Reporting currencies are the currency you use for financial, legal, and management
reporting. If your reporting currency is not the same as your ledger currency, you can
use the foreign currency translation process or reporting currencies functionality to
convert your ledger account balances in your reporting currency.

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Define Ledger – Setup Checklist

To create Primary Ledger in Financials, following are the minimum steps to
successfully create ledger in Financials:

Step 1 - Chart of Accounts

A- Create Value Sets for COA
B- Create Chart of Accounts Structures
C- Create Chart of Accounts Instances
D- Create Value Set Values (This is needed to setup mandatory retained earning
account in ledger options later)
Step 2 - Create Accounting Calendars
Step 3 - Create/setup Currencies
Step 4 - Create Legal Entity
Step 5 - Create Primary Ledger
Step 6 - Assign Legal entity to Primary Ledger
Step 7 - Final step is locate the Review and Submit Accounting Configuration task in
the primary ledger task list, then click the Go to Task icon.

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Assignments

Create your own Ledger manually:

High Level Steps:

• Under your Implementation Project, navigate to “Define Ledgers”. Please use you
the convention <SDH_Ledger> ; SDH – First Letter of First Name and First two
letters of Surname
• Open “Manage Primary Ledger” and enter the details
• Specify Ledgers Options
• Assign BS to Legal Entity, BS to Ledger and Legal Entity to Ledger
• Define Reporting Currency
• Review and Submit Accounting Configurations

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Manage Business Units and Assign Business Unit Functions
Manage Business Units : Service Provider Model or Shared Service Model
A business function represents a business process, or an activity that can be performed by
people working within a business unit and describes how a business unit is used. The
following business functions exist in Oracle Fusion applications:

In Oracle Fusion Applications, use business unit ✓ Billing and revenue management
as a securing mechanism for transactions. For ✓ Collections management
example, if you run your export business ✓ Customer contract management
separately from your domestic sales business, ✓ Customer payments
secure the export business data to prevent ✓ Expense management
access by the domestic sales employees. To ✓ Incentive compensation
accomplish this security, set up the export ✓ Marketing
business and domestic sales business as two ✓ Materials management
separate business units. ✓ Inventory management
✓ Order fulfillment orchestration
Although there is no relationship implemented in ✓ Payables invoicing
Oracle Fusion Applications, a business function ✓ Payables payments
logically indicates a presence of a department in ✓ Procurement
the business unit with people performing tasks ✓ Procurement contract management
associated with these business functions. A ✓ Project accounting
business unit can have many departments ✓ Receiving
performing various business functions. ✓ Requisitioning
✓ Sales
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References:
www.docs.oracle.com
Fusion Applications Help

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