Oracle Fusion Financials

Mr. Naveen
Email:[email protected]
www.techleadsit.com 8125 32 32 32
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Fusion Financials Common

configurations

Index
1. Overview of Fusion Financials
2. Modules available in Financials
3. Following are oracle EBS and Fusion (comparison)
4. User Interface
5. Overview of FSM
6. Prerequisite Setups
7. Creation of implementation project
8. Creation of Implementation user & assign implementation Roles
9. Define Synchronization of Users and Roles from LDAP 10. Rapid
implementation spreadsheet
FSM (configurations via Functional setup manager)
11. Define Legal Entities
12. Manage Reference Data Sharing
13. Manage Business Units
14. GL Configurations
• Manage Legal Entities
• Manage Legal Entity Reporting units
• Manage Value sets
• Define Chart of Structures
• Define structure instances
• Manage segment values
• Manage Create and publish account hierarchies
• Manage Cross validation rules
• Manage Chart of account mapping
• Define Calendars

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• Manage currencies
• Define Ledgers
• Assign Legal Entities
• Specify Ledger options
• Manage Reporting currencies
• Define Secondary Ledgers
• Specify Ledger options
• Complete primary to secondary Ledger Mapping

15. Business Process

16. Oracle Fusion Budgetary Controls & Encumbrance Accounting
17. References (links)

Overview of Fusion Financials

Oracle Fusion application is an ERP software which is a complete set of business applications
that sets the new standard for innovation, work and adoption and been built from the best
features of following ERP’s.

• EBS
• JD Edwards
• People Soft
• Siebel
Oracle Fusion applications also provides powerful reporting (includes Graphical Reporting) tool
which empowers top management to take quick business decisions. Following are the reporting
tools available in Fusion.
➢ KPI (Key performance Indicator)
➢ Dash Boards
➢ Ad hoc Reports using OBIA
➢ AD hoc Reports using OTBI
➢ FR Reports
➢ Hyperion Reporting (Smart Views)

Following are modules available in Financials.

➢ General Ledger
➢ Accounts Payable
➢ Tax Engine for Tax Calculation
➢ Asset Management
➢ Payments and collections
➢ Accounts Receivables
➢ Cash and Expense Management

Following are oracle EBS and Fusion (comparison)

EBS Fusion

Product specific setup requires logging in/out of Central place to enter all setups across products
each product (FSM)

No sequential listing of setups Auto generated list of setup tasks with

dependencies (Pre-Reqs) identified

No ability to assign tasks and monitor progress Can assign tasks, Mark status, set due dates

No ability to copy setup data across instances Can export and imports setup to any instance

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Setup data not sharable across BU’s. (OU’s) Reference data (Setup) can be shared across Bus

Product – Specific setup Centralized setup across all products

Responsibility Data Role (Automatically generated When Bus

and Ledgers are defined

Business Group Term change: Enterprise

Establishment Term change: Legal Reporting Unit

Operating Units Term change: Business Unit

 No spread sheet to upload LE’s Bus, COA, COA Integrated spreadsheets to upload all via
Values COA Hierarchies, Ledgers, Banks and Functional setup Manager (Rapid
Bank accounts implementation)

Unified chart of accounts that includes Separation of COA structure and instance
segments qualifiers and value sets

One Balancing segment and one secondary Three Balancing segments and no secondary
tracking segment tracking segment

Segment Qualifier Terminology change : Segment Label

No Date effective hierarchy Date Effective hierarchies

Segment value security at segment level Segment value set security at value set level

Relational Balances (Balance stored in Tables) Multi-dimensional balances (embedded Essbase

Cube)

Mass allocations and Auto allocations Hyperion calculation manager (graphical tool
that can leverage trees for allocations)

Web ADI for spread sheet integration ADFDI (ADF Desktop integration) for spread
sheet integration

Global Consolidation System (GCS) Hyperion Financial Management (HFM)

Budget Wizard, Budget Journals Budgets must be loaded directly to Essbase

Cube for Budgets Vs. Actual Reporting

User Interface:
Each page of Oracle Fusion can be divided into following components.

• Global Area: Contains links to help you navigate user interfaces, personalized links, tools, and the
name of the user who has signed in.
• Regional Area: Contains links to tasks and reports.
• Local Area: Contains the transaction or form that requires creation, editing or review. • Contextual
Area: Contains information that is linked to the transaction displayed in the local area.

Overview of Functional Setup manager:

Functional setup manager is one – stop planning-to-deployment application that enables a rapid start of
Oracle Fusion applications implementation. Functional setup manager provides:

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• Single interface for all the setup and maintenance phases across the complete life cycle. • Guided
Processthat make it easy to navigate through planning, implementation, deployment and ongoing
 maintenance.
• Configurability of the Oracle Fusion offerings to mold the offerings to fit the business needs. •
Predefined, guided list of tasks for full end- to-end visibility to all setup requirements enabling
business users with the ability to implement quickly what they need and when they need it. • Export
and import capability to let enterprises set up one instance and move the setup and task lists to
other instances.
• Set off comprehensive reports to give full visibility to setup any time.

Prerequisite Setup
The following setups are prerequisites before implementing oracle Fusion taxes.

• Creation of implementation Project

• Generate Functional setup task lists
• Creation of implementation users
• Assign implementation roles

Creation of implementation project:

NAV🡪 Tools 🡪 Setup and maintenance 🡪 Manage implementation project 🡪 click on Add/Create

button

Click on Next

Select all the required financials task lists

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Click on Save and open Project

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Creation of Implementation user & assign implementation Roles:
NAV🡪 Tools 🡪 Setup and maintenance 🡪 Manage implementation project 🡪 Expand Financials 🡪 Define
common Application configuration for Financials 🡪 Define implementation users 🡪 Create
implementation users Admiration 🡪 click on Create User

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 Enter user

details, add roles, and make it assignable and save and close.
Click on Add Roles and assign the below 3 mandatory roles to the user.
1. Application implementation Consultant
2. IT security Manager
3. Employee

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Following are the roles need to assign to the user
• Application implementation consultant
• IT Security Manager
• Human Capital Management Application Administrator
• Human Resource Manager
• Employee

After creating a new user and updating the roles to get come to effect run the below program

NAV🡪 Financials 🡪 Define Common application configuration for financials 🡪

“Define Synchronization of Users and Roles from LDAP”

Login with the implementation user

Creating the COA, Values sets, Values, Account Hierarchies, Ledger, Legal Entities, Cal etc., through
Rapid implementation spreadsheet.
Add the “Define Common Financials Configuration for Rapid implementation

NAV to Create Chart of Accounts, Ledger, Legal Entities and Business units in spread sheet.

After generating the chart of Accounts and Financial files.

NAV to Upload Chart of Accounts and brows the chart of Accounts file

After completion of the above program

NAV to Upload Ledger, Legal Entities and Business Units, browse the file, and check whether the
program completed with completed success.

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The following common configurations needs to complete for implementing Oracle Fusion Financials:
 ➢ Define Legal Entities
➢ Define Legal Reporting units
➢ Define Data reference sharing
➢ Manage Business Units

Login with user and change the password

Click on Setup and maintains

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Click on implementation project
Click on Your Project (PST17)

Step-4: Run the “Retrieve latest LDAP changes” program to make the effect the roles assigned to the
user.
NAV🡪 Financials🡪 Define Common Application configuration for Financials🡪 Define Synchronization of
users and Roles from LDAP 🡪 Run User and Roles synchronization process

Or

We can submit from Navigator “Scheduled process”, select Schedule new process, select the “Retrieve
Latest LDAP Changes”, and submit

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Query the program

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Click on submit

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Step-5: click select and add

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Define common financials configuration for Rapid implementation and click on Apply and done.

Step- 6: Download the excel spread sheet to create Chart of Accounts, Ledger, Legal Entities and
Business units in spread sheet.

NAV🡪 Define common financials configuration for Rapid implementation🡪 create Chart of Accounts,
Ledger, Legal Entities and Business units in spread sheet.

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 Open the sample spread sheet and make the changes as per our project requirement

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After changing the values in all the sheets validate the data, if there are no error it will be validated.
Generate Chart of Accounts file

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Generate Legal Entity, Ledger and BU
Save at desk top
And upload the below both the files by navigating to the form.

Upload chart of accounts to upload the COA files

Browse the COA File

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Upload the Legal Entity, Ledger and Business units file (Browse the file)

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NAV🡪 Financials 🡪 Define Common Application configuration for financials 🡪 Define Enterprise structure for
financials🡪 Define Enterprise for financials 🡪Manage Locations

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FSM
Define Legal Entities
Define Legal Jurisdictions:
NAV🡪 Financials 🡪 Define Common Application configuration for financials 🡪 Define Enterprise
structure for financials🡪 Define Legal Jurisdictions and Authorities for Financials 🡪 Manage Legal
Jurisdictions
NAV🡪 Financials 🡪 Define Common Application configuration for financials 🡪 Define Enterprise
structure for financials🡪 Define Legal Jurisdictions and Authorities for Financials 🡪 Manage Legal
Authorities

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Define common Application configuration for Financials 🡪 Define Enterprise structure for Financials
🡪Define Enterprise for Financials 🡪Manage Locations
Contd.,

Contd.,

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Define common Application configuration for Financials 🡪 Define Enterprise structure for Financials 🡪Define
Enterprise for Financials 🡪 Define Legal jurisdictions and Authorities for Financials
🡪 Manage Legal Address 🡪 click on Create or ADD

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Define legal entity for each legal 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.

NAV🡪 Tools 🡪 Setup and maintenance 🡪 Manage implementation project 🡪 Expand Financials 🡪
Define common Application configuration for Financials

🡪 Define Enterprise structure for Financials 🡪 Define Enterprise for Financials 🡪Define Legal entities
for Financials 🡪 Manage Legal entity

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Define Legal Reporting units:
NAV🡪 Tools 🡪 Setup and maintenance 🡪 Manage implementation project 🡪 Expand Financials 🡪
Define common Application configuration for Financials 🡪 Define Enterprise structure for Financials 🡪
Define Enterprise for financials🡪 Define Legal entities for Financials 🡪 Define Legal Reporting unit for
Financials 🡪 Manage Legal Reporting Unit

Create a Legal Reporting unit in respect of each part of the legal structure you have registered with a
jurisdiction. If you have registered a group of workers for the purpose of tax or social insurance
reporting, use a legal reporting unit for that registration. If you have specific statutory or tax reporting
obligations, use legal reporting units for each registration.

For create new one need to select “Crete New”

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Manage Reference Data Sharing:
NAV🡪 Financials 🡪 Define common Application configuration for Financials 🡪 Define Enterprise
structure for Financials 🡪Define reference Data sharing 🡪 Manage reference Data sets

Define reference data and divide the data into partitions called reference data sets. Assign the reference
data sets based on your business needs across organization entities.

Manage Business Units

NAV🡪 Financials 🡪 Define common Application configuration for Financials 🡪Define Business Units 🡪
Manage Business units

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A business unit represents a unit of an enterprise that performs one or many business functions and Business unit is
used to partition your sub ledgers
.
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Fusion General Ledger

GL Configurations:
The following common configurations need to complete for implementing Oracle Fusion Financials:

• Manage Legal Entities

• Manage Legal Entity Reporting units
• Manage Value sets
• Define Chart of Structures
• Define structure instances
• Manage Segment values
• Manage and publish account hierarchies
• Manage Cross validation rules
• Manage Chart of account mapping
• Define Calendars
• Manage Currencies
• Define Ledgers
• Assign Legal Entities
• Specify Ledger options
• Manage Reporting currencies
• Define Secondary Ledgers
• Complete primary to secondary Ledger Mapping

Manage Legal Entities

A Legal Entity is a recognized party with rights and responsibilities given by legislation. A
legal entity has responsibility for elements of your enterprise for the following reasons
Facilitating Local Compliance
Taking advantage of lower corporation taxation in some jurisdictions.
Preparing for acquisitions or disposals of parts of the enterprise
NAV🡪 Financials 🡪 Define common Application configuration for Financials 🡪 Define Enterprise
structure for Financials 🡪 Define Legal entities for Financials 🡪Manage Legal entities.

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Manage Legal Entity Reporting units

A Legal Reporting unit is such as branches, divisions, establishments, Inventory organizations and Physical Locations,
which are components of Legal entities.
Following are the things to be consider while creating Legal Reporting Unit.

Each of Legal Entity has at least one legal Reporting unit

Legal Reporting units can be defined by physical location, such as sales office
There can be multiple registrations associated with Legal Reporting unit.
However there can be only one identifying registration, defined by the legal authority used for the legal entity or
legal reporting unit, associated with the legal Reporting Unit.

NAV🡪 Financials 🡪 Define common Application configuration for Financials 🡪 Define Enterprise structure for
Financials 🡪 Define Legal entities for Financials 🡪Manage Legal Reporting units

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Manage Value sets
Manage Value sets

Values sets are used to control the characteristics and format of the Chart of Accounts Segment Values.

Value Sets controls what type of values can be used as chart of accounts segment values.

Determine the attributes of your segments such as length, Zero-fil, right – Justify, alphanumeric and
value security.

Control how validation is performed.

NAV🡪 Financials 🡪 Define common Application configuration for Financials 🡪 Define Enterprise
structure for Financials 🡪 Define Financial Reporting structure 🡪 Define Chart of Accounts 🡪 Manage
Chart of Accounts value sets 🡪 go to Task🡪 Click on ADD

Use the value sets to control the character cists and format of the chart of account segments

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Once we click on Save will get Definition fields

Define Chart of Structures

Ledger offers use of 3 balancing segments and these are

Primary Balancing Segment

Second Balancing Segment
Third Balancing Segment

Primary Balancing segment is required whereas second and third balancing segments are optional and
can be assigned to division or to cost center segment. With the help of these balancing segments, Fusion
GL offers tracking of Financial transactions and results at a finer level of granularity compared to single
balancing segment in EBS R12

Manage Chart of account Structure:

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NAV🡪 Financials 🡪 Define common Application configuration for Financials 🡪 Define Enterprise
structure for Financials 🡪 Define Financial Reporting structure 🡪 Define Chart of Accounts 🡪 Manage
Chart of Accounts structures 🡪 go to Task

Click on Manage Structure and click on ADD

Click on Search
Key Flex filed name (Accounting Flex field)

Click on Manage Structures

Click on Add

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Click on Save then ADD + button will be enabled

Define the Segments such as Company, LoB, Division, Account, Cost Center and intercompany

Once we save Create (+) button will enabled and click on add and create the segments and add
respective labels to the segments.

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Select the label you want to assign to the segment and save or Save and close

Division

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LoB

Account

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Cost Center

All segments

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Define Structure instances
Manage Structure Instances
Structure: Structure definition includes the member of segments and their order. Based on reporting
requirements of the users COA structure and number of segments will be defined. Each structure may
have one or more structure instances.

Structure instance: You can define multiple configurations of a key flexi field structure. The structure
instances have the same segment structure, in the same sequence order. They differ primarily in how
each segment is validated.

Under structure and structure instance will create the below

COA Structure 🡪 Number of Segments , Segment sequences , Segment names and prompts , Segment
labels and Default value sets

COA Structure instance --> Override the value sets, enabling dynamic insertion, create hierarchies for
each segments, Assign a tree node each instance segment

Segment in the COA Structure should be assigned with a segment Labels.

➢ Defining segment values with the following information

✓ Name
✓ Description
✓ Start Date and End Date

NAV🡪 Financials 🡪 Define common Application configuration for Financials 🡪 Define Enterprise
structure for Financials 🡪 Define Financial Reporting structure 🡪 Define Chart of Accounts 🡪

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Manage Chart of Accounts structure Instances 🡪 go to Task 🡪 click on ADD
Click on Create (+)

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Create Structure instance and select the structure and once select the structure all the segments
associated with Structure will be defaulted, then make it require and assign the Tree codes and save
and close

Make it require and assign Tree name, do the same for all Segments.

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 Dep

loy the Flex field

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5
Manage Segment values
Allow Posting: Select yes to enable posting to the Account. If you set to ‘No’ you cannot post the
account. For parent segment values we must need to select as ‘No’ and for child segment values you
must need to select as ‘Yes’ For parent segment values you select as ‘No’ because we cannot post the
Parent segment values.
Allow Budgeting: Select ‘Yes’ to perform budgeting for accounts with the segment value. For parent
segment value you will select as ‘No’ because we will not do the budgeting for parent values.
Account Type
Define an Account type for each natural account segment value

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select the type of account, Asset, Liability, Owner’s Equity, Revenue or Expense.
Enter either Asset or Expense for statistical accounts. If you choose Asset, the balance in the Account
carry forward year to year. If you choose expense, your statistical balance will show Zero at the end of
the Fiscal Year.

Third Party Control Account

Enter customer, supplier as Yes for the third party control account to designate the account as a control
Account.
Access to this account will be restricted to Oracle Payables, Receivables and Inventory for which sub
ledger 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 SLA Journals Entries.
Reconcile: Enter Yes for Reconcile to allow reconciliation for natural accounts that should balance to
zero.
Financial Category: Used with Oracle Translation Business intelligence reporting to further identify
groups of Accounts.

NAV🡪 Financials 🡪 Define common Application configuration for Financials 🡪 Define Enterprise
structure for Financials 🡪 Define Financial Reporting structure 🡪 Define Chart of Accounts 🡪 Manage
Chart of Accounts Value set values 🡪 go to Task

Query your value set and click on Manage Values or edit the value set and click on Manage Values

Create the Values search the Value set and create the values

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Click on Edit or directly click on Manage Values to create the values to the value set

Click on Manage Values

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Parent Values (All Divisions)

Child Values 🡪IND Division

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USA Division
CAN Division

Click on search to view the values we created under that value set

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Creating value for Company value set

Creating value for Account value set

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Manage and publish account hierarchies
Account hierarchy
A given segment in the chart of accounts can have multiple hierarchies and each hierarchy can have
multiple versions. Analyze financial results for any accounting period using any version of any account
hierarchy.

➢ Process Account hierarchies for any hierarchy changes

➢ Manually Submit the Process Account hierarchies under the following scenarios:
🡪When a new tree or tree version is defined
🡪If the tree or tree version has changes that would alter the flattened hierarchy data, such as
adding, moving or duplicate numbers or anything that impacts the flattened hierarchy data.
🡪If new COA Values are added that are within account range assigned to the hierarchy.
🡪Process Account hierarchies automatically by run the following process:
🡪Tree Audit and tree Activation
🡪Tree Row Flattening
🡪Tree Column Flattening

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🡪Maintain value sets
🡪Maintain Account hierarchies
🡪Publish Hierarchies (You can select not to run this process)
Manage Create and Publish account Hierarchies:
NAV🡪 Financials 🡪 Define common Application configuration for Financials 🡪 Define Enterprise structure for
Financials 🡪 Define Financial Reporting structure 🡪 Define Chart of Accounts 🡪 Manage Account Hierarchies 🡪 go to
Task

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Create Definition

In the Data source parameters in the value field under Accounting flex field hierarchy Detail value and
hierarchy Parent Value for Bind Value set code we need to give the Value set for which we are creating
the Account hierarchy and after giving once we save it then only it will allow us to go next step.

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After click on next and next we need to click on submit. (We can create account hierarchy with versions.
We can have multi range hierarchies with different versions) save with submit and add version.

Enter the data in Specify definition as shown below (Version numbering and date) and click on next
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Under Specify nodes define as shown below. (Click on ADD)

From data source first select Parent hierarchal values
Same way from Data source add the available nodes of Hierarchy Child values

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Submit the

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Make

it tree structure to active from Draft mode

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Assi
gn Account Hierarchy to the Division segment.
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Manage

Short hand Alias

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Ma

nage Account Combinations

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Manage Cross validation rules:

Cross Validation Rules:
Prevent the creation of invalid account combinations by setting up cross validation rules.
Cross Validation Rules controls the following things:

Controls the combinations of values you can create when you are setting up account combinations.
Defines whether a value of a particular segment can be combined with specific values of other
segments.

Differs from segment validation, which controls the values you can enter for a particular segment. Used
to prevent the creation of combinations that should never exist, such as combination with values that
should not coexist in the same combination. EX: You can assign rules to prevent the combination of a
product with administrative departments.
NAV🡪 Financials 🡪 Define common Application configuration for Financials 🡪 Define Enterprise
structure for Financials 🡪 Define Financial Reporting structure 🡪 Define Chart of Accounts 🡪 Manage
Cross Validation Rules 🡪 go to Task

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Define the condition and Validation

Condition
Validation

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Err

or message and enable the check box

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Manage Segment Value Security Rules

NAV🡪 Financials 🡪 Define common Application configuration for Financials 🡪 Define Enterprise
structure for Financials 🡪 Define Financial Reporting structure 🡪 Define Chart of Accounts 🡪 Manage
Segment Value security Rules 🡪 go to Task

Select COA Instance and click on ADD

Manage Security Rules

Enable the check box of Security Enabled and click on save (Once saved then only Edit Data Security) will
be enabled

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Crea
te Condition
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C
reate Policy
General Information

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Role
Rule

Click on Save and Submit and deploy Flex field.

Assign the General Accountant Manger Role to the user

Manage Chart of Account Mapping

NAV🡪 Financials 🡪 Define common Application configuration for Financials 🡪 Define Enterprise
structure for Financials 🡪 Define Financial Reporting structure 🡪 Define Chart of Accounts 🡪 Manage
Chart of Accounts Mapping 🡪 go to Task

Define Calendars:

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We have two types of calendars:
✓ Accounting Calendar is financial calendar
✓ Transactional Calendar consists of BUZ Days

NAV🡪 Financials 🡪 Define common Application configuration for Financials 🡪 Define Enterprise
structure for Financials 🡪 Define Financial Reporting structure 🡪 Define Calendars 🡪 Manage
Accounting Calendars 🡪 go to Task

Define Calendars

Next

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Save

Once we save it will enable ADD Year Button, once we click on ADD year it will create the periods for
whole year

2018 year

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Manage Currencies
To convert Foreign Currency transactions to Functional Currency we need Conversion types

✓ Spot
✓ Corporate
✓ User
✓ Fixed

Cross Rates Rules: Cross Rates facilitate the creation of daily Rates by automatically deriving the
rates from relationship between contra currencies and a pivot currency.
Pivot Currency: A currency linked to the two contra currencies to enable the automatic creation of daily
rates between the contra currencies. Select a pivot currency that is commonly used in your currency
conversion and is enabled, effective and not a stoical currency.
Contra Currency: A currency other than your pivot currency that is enabled, effective and not a
statistical currency

NAV🡪 Financials 🡪 Define common Application configuration for Financials 🡪 Define Enterprise
structure for Financials 🡪 Define Financial Reporting structure 🡪 Define

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Manage Conversion Rate Types

Define conversion type, enable the check box as required, and give the cross rate Pivot currency

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Give the contra currencies

Manage Daily Rates

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 Ma

nage Daily Rates

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Define Ledgers
We have three types of Ledgers:

✓ Primary Ledger
✓ Reporting Ledger
✓ Secondary Ledger

Primary Ledger🡪 Main record keeping ledger and a required component in your configuration.
Every accounting configuration is uniquely identified by its primary ledger.
The primary ledger is closely associated with the sub ledger transactions and provides context and
accounting for them.

NAV🡪 Financials 🡪 Define common Application configuration for Financials 🡪 Define Ledgers 🡪 Define
Accounting configurations 🡪 Manage Primary Ledgers 🡪 go to task

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Assign Legal Entities:
NAV🡪 Financials 🡪 Define common Application configuration for Financials 🡪 Define Ledgers 🡪 Define
Accounting configurations 🡪 Assign Legal Entities 🡪 Go to task

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Specify Ledger Options:
NAV🡪 Financials 🡪 Define common Application configuration for Financials 🡪 Define Ledgers 🡪 Define
Accounting configurations 🡪 Specify Ledger Options 🡪 go to task

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