Oracle Apps Finance Training in Hyderabad

Organizational Classifications in Oracle Financials

• Two vehicles, system organization entities and the chart of accounts, are the cornerstones for securing transactions and modeling an enterprise in the Oracle E-Business Suite. The assembly of these building blocks to model your enterprise will define the representation of your business and your process flows in the applications suite.
• In general, a system organization entity might represent any real organizational unit within a business. Depending on their classification, system entities deliver specific features and controls, such as access control and shared service administration, policy, legal or compliance administration, data storage, and employee administration. Oracle Financials provides names that reflect that functionality. In general, assigning a system entity to represent a real world entity with the same nomenclature is an effective choice.
• By contrast, a chart of accounts representation of a real world entity is an identifier for analysis and accounting, with fewer features and control associated with it. Important entities, such as cost center and legal entity, can be represented by both a system entity and as a value in a chart of accounts section.
• Several system entities are so closely tied to accounting entities that we automatically correlate them; others have looser associations so that you can tune the relationship to your actual organization..

Using Oracle Human Resources with Oracle Financials

• Just as legal entity and ledger structures furnish a strong degree of transactional control, business groups and department structures in Oracle Human Resources provide significant internal control in an enterprise.
• In addition to direct relationships between headcount and spend rates, people and hierarchies are the primary means of authorization and security in an organization. For example, spending controls can be enforced by person and level in the hierarchy. Your internally controlled approval routing goes through a process that you can allow to default to the department hierarchy in Human Resources or to any other hierarchy that you create. Consider the following examples:
• Purchase Approval Hierarchy: Purchase orders entered in Oracle Purchasing utilize workflow to route the purchase order for approval.
• Journal Vouchers: Since journal vouchers can be unique in nature, their approval cannot be restricted to a hierarchy within a particular department. You can create workflow routing rules to personnel in a business group for the approval of journals in Oracle General Ledger.
• Manual Invoices: Manual invoices use Oracle Approval Management Engine (AME) for approval. In turn, AME uses the Human Resources departmental hierarchy and spending authority at every level in the hierarchy to route the invoice.
• Salary might be your primary expense. Oracle Human Resources breaks out salary by your departmental organizations. Broadly speaking, your Human Resources departments will map to Oracle General Ledger cost centers.
• The caveat here is that once you set up your operating units and assign employees to tasks in the various modules, it is difficult to subsequently configure and assign a new business group with your own choice of default information. Therefore, we recommend that you set up a business group while implementing Oracle Financials even if you do not plan to explicitly use it for Human Resource purposes.

Reports

Oracle Financials provides extensive reporting capability as described in the following sections.

• Standard Reports

Several thousand reports are shipped with Oracle Financials products.

• Filing with the Authorities

Oracle Financials includes many standard reports that are designed to support your ability to file statutory, transaction tax (for example, sales tax, Value Added Tax (VAT), and Goods and Service Tax (GST)), and other reports with authorities in over 120 countries around the world.

• Reconciliation and Control

Many other standard reports are oriented towards reconciling and controlling your data. Examples include receivables aging reports and customer and vendor trial balances.

• Drill-down and Cross Reference

The Oracle E-Business Suite products are integrated and based on a common data model. Interrelated drill-down reports are efficient and comprehensive, and in many cases, several layers deep.

• Product Specific Reports

Oracle Financials provides many reports for specific functional areas. Oracle General Ledger and Oracle Subledger Accounting report on accounting affairs. Oracle Receivables and Oracle Payables report on invoices and payments. Oracle Cash Management provides detailed cash flow reports. Oracle E-Business Tax provides reports specifically for sales and value added tax reporting.

• Generating Reports

You can run reports from our menu system. Extracts are generated from the database and are then formatted and published. Traditional reports have a unique extract. Newer and revised reports may share extracts and allow formatting to hide data that is not required.

Security

• For the most part, access and security to reports of all kinds follows the access and security that are associated with the system representation of your organization and the process involved. Where appropriate, reporting security extends this model. For example, a reporter working on the receivables balance needs to know the full receivable, even if the reporter doesn't have access to each invoice.

The Corporate View

• Local organizations and accounting so that you can comply with local and national rules and regulation.

Of course, it is also important that you manage your businesses and account for them to your shareholders on a worldwide basis. We've described several devices that facilitate the development of information from the locally compliant operations that conform to your management principles and applicable worldwide Generally Accepted Accounting Principles:

• Global Chart of Accounts
• Adjusting Segment Automation and Accounting Rules
• Multiple Ledgers, Ledger Sets, and Accounting Rules
• Translation and Remeasurement Techniques
• Cross Organization Reporting