Oracle Fusion Financials Overview

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Published on March 9, 2014

Author: BerryClemens1

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Purpose: This document provides an overview of features and enhancements included in Oracle Fusion Applications 11gR1 Release 11.1.1.5.0 and applicable updates. It is intended solely to help you assess the business benefits of upgrading your existing Oracle Products to this release, or implementing completely new Oracle developed products, and planning your I.T. Projects. Disclaimer: This document in any form, software or printed matter, contains proprietary information that is the exclusive property of Oracle. Your access to and use of this confidential material is subject to the terms and conditions of your Oracle Software License and Service Agreement or other applicable contract with Oracle, with which you agree to comply. This document and information contained herein may not be disclosed, copied, reproduced or distributed to anyone outside Oracle without Oracle’s prior written consent. This document is not part of your license agreement nor can it be incorporated into any contractual agreement with Oracle or its subsidiaries or affiliates. This document is intended to outline our general product direction. It is intended for informational purposes only and solely to assist you in planning for the implementation and upgrade of the product features described. Release information contained in this document is not a firm development plan. Release information published here should not be used as the basis for customer delivery commitments, as part of marketing efforts, or during contract negotiations. This 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, and inclusion or not thereof in the commercially available version of the Software, if any, is subject to change at any time and is always at Oracle’s sole discretion. This document is not considered part of the applicable program documentation. Due to the nature of the product architecture, it may not be possible to safely include all features described in this document without risking significant destabilization of the code. 2 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.

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Agenda 1. Overview 2. Key Features • Financial Reporting Structures • Charts of accounts • Calendars • Currencies 1. Additional Resources 4 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.

Overview Financial Enterprise Structures • Financial enterprise structures are the entities that define the reporting, legal and business aspects of your enterprise * Covered in a separate implementation training: Oracle Fusion Financials Enterprise Structures Implementation and Configuration Considerations – Part 2 5 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.

Overview Key Features • Financial reporting structures • Charts of accounts • • • • • Value Sets Chart of accounts structures Chart of accounts structure instances Account hierarchies Cross validation rules • Calendars • Accounting calendars • Transaction calendars • Currencies • Currencies • Conversion rate types and daily rates 6 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.

Financial reporting structures Charts of accounts 7 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.

Feature Summary (1/2) Financial reporting structures – Charts of accounts Create your charts of accounts to organize and track your Create your charts of accounts to organize and track your financial transactions and reporting financial transactions and reporting • Define your chart of accounts structure, segments, segment labels and value sets • Reuse the same chart of accounts structure to create different chart of accounts structure instances that fit your enterprise needs • Create and publish date-effective hierarchies to reflect parent/child relationships between your segment values 8 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.

Feature Summary (2/2) Financial reporting structures – Charts of accounts • Define segment value security rules against your value sets to control access to parent and detail values across any chart of accounts segment • Define cross-validation rules to prevent creating account combinations when certain values across segments are combined 9 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.

Key Decisions (1/2) Financial reporting structures – Charts of accounts 10 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.

Key Decisions (2/2) Financial reporting structures – Charts of accounts 11 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.

Implementation Concepts (1/9) Financial reporting structures – Charts of accounts Chart of accounts structure 12 Chart of accounts structure instance Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.

Implementation Concepts (2/9) Financial reporting structures – Charts of accounts • Chart of accounts structure • Building block of your chart of accounts implementation, geared towards flexibility and minimizing setup efforts • Defines the number of segments, segment sequence, labels and default value set for each segment • Chart of accounts structure instance • Also referred to as chart of accounts • Multiple charts of accounts can share the same structure, but each may be customized differently to fit your transactional and reporting requirements: • Value set • Account hierarchy • Dynamic combination creation 13 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.

Implementation Concepts (3/9) Financial reporting structures – Charts of accounts • Example: Chart of accounts structures and instances 1 Primary Primary balancing balancing segment segment 2 Second Second balancing balancing segment segment Dynamic account Dynamic account creation disabled creation disabled 14 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential. 3 Dynamic account Dynamic account creation enabled creation enabled Natural Natural account account segment segment

Implementation Concepts (4/9) Financial reporting structures – Charts of accounts • Segment labels (qualifiers) • Segment labels assign special functionality to certain segments in your chart of accounts structure • You may use up to 3 balancing segments to allow for more granular transaction tracking and financial reporting Segment label Primary balancing segment Required – ensures that all journals are balanced for each primary balancing segment value Natural account segment Required – mapped to an account type, a financial category and other key transactional attributes Second balancing segment Optional Third balancing segment Optional Intercompany segment Optional – used in intercompany balancing. If this is a new chart of accounts implementation, you should enable the intercompany segment. Cost center segment Only required if accounting for certain transactions in Fusion Financials. It is recommended that you enable the cost center segment for your chart of accounts. Management segment 15 Usage Do not use – planned for a future release Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.

Implementation Concepts (5/9) Financial reporting structures – Charts of accounts • Account hierarchies • Create account hierarchies (trees) to identify managerial, legal or geographical relationships between your value set values • Define date-effective tree versions to reflect organizational changes within each hierarchy over time • Publish multiple hierarchies to balances cubes to allow for financial reporting and analysis of past, present or future data 1 2 16 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.

Implementation Concepts (6/9) Financial reporting structures – Charts of accounts • Segment value security • Define security rules against your value sets to control access to parent or detail segment values • Securing a value set denies access to all values by default. Create conditions and assign them to specific data roles to control access to your segment values •In this example, you enable security on both the Cost Center and Account value sets that are associated with your chart of accounts. •Users assigned the “General Accountant – InFusion USA” data role will have access to cost center ‘Accounting’ and account ‘US Revenue’. •All other users will be denied access to all cost center and account value set values. 17 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.

Implementation Concepts (7/9) Financial reporting structures – Charts of accounts • Segment value security (cont’d) • You may use any of the following operators in your conditions to secure your segment values: Operator Equal to Secures a specific detail value. You cannot use this operator to secure a parent value. Not equal to Secures all detail values except one that you specify. You cannot use this operator to secure a parent value. Between Secures a range of detail values. Is descendent of Secures the parent value itself and all of its descendents, including mid-level parents and detail values. To use this tree operator, you must specify an account hierarchy (tree) and a tree version. However, the security rules apply across all tree versions of the specified hierarchy, as well as all hierarchies associated with the value set. Is last descendent of 18 Usage Secures the last descendents (i.e. the detail values) of a parent value. To use this tree operator, you must specify an account hierarchy (tree) and a tree version. However, the security rules apply across all tree versions of the specified hierarchy, as well as all hierarchies associated with the value set. Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.

Implementation Concepts (8/9) Financial reporting structures – Charts of accounts • Segment value security (cont’d) Security rule based on hierarchical operator Your cost center segment has 2 account hierarchies: a management and a geographical hierarchy. You originally secure (using the “Is descendent of” operator) the cost center “100” in the 2010 version of your management hierarchy, but a change in the cost center responsibilities requires you to create a 2011 version to highlight the new parent/child relationships. For data security purposes, the 2011 version of the management hierarchy is the currently active version. Management hierarchy Management hierarchy 2010 version 2010 version 2011 version 2011 version Geographical hierarchy Geographical hierarchy 2010 version 2010 version Legend Access granted Access denied 19 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.

Implementation Concepts (9/9) Financial reporting structures – Charts of accounts • Cross-validation rules • Determine what segment values may be combined with other values across different segments of your chart of accounts • Prevent the creation of new account combinations only, in case the underlying segment values violate the validation rules • Defined in terms of a condition filter and a validation filter • Condition filter - event under which the rule will be evaluated • Validation filter - condition that the account combination must satisfy before it can be created Your enterprise has determined that the “Operations” company value cannot use the “Marketing” department. Create the following cross-validation rule to prevent creating new account combinations that violate this requirement: 20 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.

Deltas with EBS Financial reporting structures – Charts of accounts R12 EBS Added benefits No chart of accounts structures Chart of accounts structures, chart of accounts structure instances The chart of accounts structure is the building block of your setup, geared towards flexibility and minimizing implementation efforts. Create multiple charts of accounts (structure instances) that share the same structure, but customize each differently to fit your enterprise needs. One balancing segment, secondary tracking segment Up to 3 balancing segments Create your chart of accounts based on up to 3 balancing segments, thus allowing more granular transaction tracking and financial reporting. Segment Qualifier Segment Label N/A – nomenclature change. Compile Accounting Flexfield 21 Fusion Deploy Accounting Flexfield N/A – nomenclature change. Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.

Best Practices (1/11) Financial reporting structures – Charts of accounts • To streamline your chart of accounts implementation, follow the steps below: 1. Create your value sets with no values 2. Create your chart of accounts structure and specify your segment labels 3. Create your chart of accounts (structure instance) 4. Create your value set values and specify mandatory attributes 5. (Optional) Create and publish your account hierarchies 6. (Optional) Define segment value security rules 7. (Optional) Define cross validation rules 22 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.

Best Practices (2/11) Financial reporting structures – Charts of accounts • General implementation considerations Implementation question How do I design the structure of my chart of accounts? •Design the structure of your chart of accounts carefully, including the number of segments and their sequence. •Plan ahead and anticipate the growth of your enterprise by defining one or more “future” segments. Assign those segments a default value to streamline data entry in your Flexfield components. •After you complete your accounting configuration and begin your transaction cycle, making changes to the segments is neither recommended nor supported. Can I start using my chart of accounts immediately after creating or updating it? 23 Recommendations and best practices You must deploy (compile) the Accounting Flexfield every time you create new or make structural changes to your chart of accounts and account hierarchies, to ensure that the new changes take effect across all applicable flows in Fusion Financials. This includes: •Creating a new chart of accounts structure, or modifying its key attributes, or the attributes of its segments •Creating a new chart of accounts (structure instance), or modifying its key attributes, or the attributes of its segments •Associating an account hierarchy to a chart of accounts segment •Enabling or disabling segment value security on a value set Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.

Best Practices (3/11) Financial reporting structures – Charts of accounts • Value sets Implementation question What validation type should I use? Only “Independent” and “Table” validations are supported. The “Dependent” validation type is planned for a future release. What value data type and subtype should I use? Use the “Character” data type and the “Text” subtype, which are typical in natural account segment values. We recommend restricting values to uppercase only and numeric values to be zero-filled by default. What should be the maximum length of my value set? The maximum length of your value set must be limited to 25 characters due to a constraint in the account combinations table in Fusion General Ledger. Set the maximum length to correspond to the width of the chart of accounts segment to which it is assigned. Should I start defining values immediately after creating my value set? 24 Recommendations and best practices Associate your value set to a chart of accounts before defining your value set values. This ensures that the key attributes of your values (e.g. “Allow Posting”, “Account Type”, etc.) can be specified. Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.

Best Practices (4/11) Financial reporting structures – Charts of accounts • Chart of accounts structure Implementation question When should I create my chart of accounts structure? You must create your chart of accounts structure after creating your value sets because the structure must be assigned a default value set. How should I define my segment labels? 25 Recommendations and best practices •All segment labels can only be assigned once throughout the chart of accounts structure. •The following segment labels are mandatory: “Primary Balancing Segment” and “Natural Account Segment”. Each must be assigned to only segment, and the assigned segment cannot be qualified with any other segment label. •The Intercompany segment is optional; however, for new implementations, you should use this segment and assign the same values to both the primary balancing and intercompany value sets to enable clear visibility of the due to and due from relationships inherent in intercompany accounting. •The second/third balancing segments are optional, and may be co-assigned with the cost center segment. •Do not use the management segment label. It is planned for a future release. Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.

Best Practices (5/11) Financial reporting structures – Charts of accounts • Chart of accounts structure (cont’d) Implementation question How do I choose my segment display width? We recommend that you set the display width of each of your segments to correspond to the maximum length of the value set to which it is assigned. Must the segment sequence be gapless? 26 Recommendations and best practices The chart of accounts structure defines the number of segments and the segment sequence for your chart of accounts. You must use sequential numbering (beginning with number 1) and avoid any gaps in the display order of your segments. Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.

Best Practices (6/11) Financial reporting structures – Charts of accounts • Chart of accounts Implementation question How do I define my chart of accounts structure instances? The chart of accounts (structure instance) definition is based on the chart of accounts structure it is associated with. If your enterprise needs identical structures for different charts of accounts, consider creating one structure and customize your charts of accounts accordingly to fit your enterprise needs. Should I turn on dynamic combination creation? We recommend turning on the setting for dynamic combination creation until all setup-related activities are finalized. Turn off dynamic creation to prevent creating new account combinations throughout the Fusion Financials pages and processes, and only limit it to the Account Combinations UI. How do I associate an account hierarchy to my segments? 27 Recommendations and best practices For each segment, you may assign an account hierarchy (“Tree Code” attribute) that will be used for general ledger processing, as well as allocations and financial reporting. Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.

Best Practices (7/11) Financial reporting structures – Charts of accounts • Chart of accounts (cont’d) Implementation question Recommendations and best practices How do I choose my segment attributes? All chart of accounts segment attributes are inherited from the chart of accounts structure. Additionally, you must ensure that all segments be required and displayed in your chart of accounts by turning on the “Required” and “Displayed” attribute. For segments that you expect to have a large number of distinct values, you must perform the following steps: •In the chart of accounts definition, mark the segment “Query Required” option as “Selectively required”. When performing search in a transactional page, you will have to specify the segment as a mandatory search criteria. •You must create indexes in the GL_CODE_COMBINATIONS table for segments that are selectively required. 28 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.

Best Practices (8/11) Financial reporting structures – Charts of accounts • Value set values Implementation question Should I start defining values immediately after creating my value set? We recommend defining your value set values after creating your chart of accounts. This ensures that the key attributes (e.g. “Allow Posting”, “Account Type”) are displayed and can be specified. How should I set the Summary attribute? You must set the Summary flag to “No” for a detail value, and to “Yes” for a parent value. Changing the summary flag attribute after completing your accounting configuration (ledger setup) is neither recommended nor supported. How should I set the Allow Posting attribute? You must this attribute to “Yes” for a detail value, and to “No” for a parent value. An exception to this rule is the natural account value for the net income account in Fusion General Ledger, for which you must set this flag to “No”. How should I set the Allow Budgeting attribute? This flag is not used directly in this release, but we recommend setting it to “No” for detail values, and to “Yes” for parent values. When do I use a Financial Category? 29 Recommendations and best practices If you plan to use OTBI reporting, you must specify a financial category for your natural account values. Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.

Best Practices (9/11) Financial reporting structures – Charts of accounts • Value set values (cont’d) Implementation question Recommendations and best practices I completed my accounting configuration. Is it OK to create new or modify existing value set values? If you create new value set values after your accounting configuration (ledger setup) is complete, you must manually run the following processes: •Maintain Value Sets – updates value set values in Fusion General Ledger tables. •Publish Chart of Accounts Dimension Members – publishes chart of accounts dimension member changes to balances cubes associated with the value set’s chart(s) of accounts. If you modify your segment value attributes (e.g. “Start Date”, “End Date”, “Allow Posting”, “Account Type”, etc.), and want the associated account combinations to inherit them, you must manually run the Inherit Segment Value Attributes process . 30 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.

Best Practices (10/11) Financial reporting structures – Charts of accounts • Account hierarchies Implementation question How do I create a new account hierarchy? •You must implement all your account hierarchies (trees) based on the seeded “Accounting Flexfield Hierarchy” tree structure. •When specifying the data source for your hierarchy, you must specify the same value set code for both parent and detail values. •You must save your data source parameters before proceeding to the next screen in your account hierarchy definition. How do I define tree versions for my hierarchy? •Define date-effective tree versions for your account hierarchies to reflect organizational changes over time. The effective dates for your tree versions must not overlap. •Before using your tree version, you must perform an online audit to validate your version for any structural or functional errors. •To activate your tree version and ready it for use, set its status to “Active”. You can only transact with and report on active versions. Do I need to publish my account hierarchies? 31 Recommendations and best practices You must publish your account hierarchies to cubes if you plan to use them for allocations and financial reporting. Otherwise, they will only be available for transactional flows. If you have not finalized your accounting configuration, you can mark your hierarchies for publishing and they will be picked up when your ledger setup is complete. Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.

Best Practices (11/11) Financial reporting structures – Charts of accounts • Account hierarchies (cont’d) Implementation question How do I ensure that new hierarchies or updates to existing ones go into effect? When you create new account hierarchies, or make changes to existing hierarchies, you must manually run the following processes: •Column Flattening and Row Flattening – run these online processes on a specific tree version to flatten the parent/detail value relationships in your tree version and ready it for your transactional and reporting flows. •Maintain Value Sets – updates value set values in Fusion General Ledger tables. •Maintain Chart of Accounts Hierarchies – updates chart of accounts hierarchies in Fusion General Ledger tables. •Publish Chart of Accounts Dimension Members – publishes chart of accounts dimension member and hierarchy changes to balances cubes associated with the value set’s chart(s) of accounts. Can I delete an account hierarchy? 32 Recommendations and best practices You must decommission (“unpublish”) a tree version from your balances cubes before deleting it (or deleting its associated hierarchy), otherwise you will no longer be able to remove it from your cube outlines. Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.

Relevant Setup Tasks Financial reporting structures – Charts of accounts (1) Covered in the Oracle Fusion General Ledger Implementation and Configuration Considerations implementation training (2) Navigate to this task to run the Inherit Segment Value Attributes process 33 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.

Financial reporting structures Calendars 34 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.

Feature Summary Financial reporting structures – Calendars Create your calendars to record and track your transactions by Create your calendars to record and track your transactions by accounting periods and business days accounting periods and business days • Create your accounting calendars to record your transactions into accounting periods and monitor the close cycle across your entire enterprise • Create your transaction calendars to track your business and non-business days for average balance processing 35 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.

Implementation Concepts (1/3) Financial reporting structures – Calendars • Accounting Calendars • Generate your accounting periods automatically by specifying your calendar attributes from a pool of commonly used standard/adjusting period frequencies, and other key parameters Period frequency Adjusting period frequency Weekly None 4/4/5 1 year end 4/5/4 1 year beginning and 1 year end 5/4/4 1 mid year and 1 year end 4 Week 2 year end Monthly 1 mid year and 2 year end Quarterly Quarterly Yearly Other Other • If your organization uses a custom type of calendar that does not fit any of the seeded frequencies, then you must use the “Other” period frequency, and manually define the period start/end dates 36 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.

Implementation Concepts (2/3) Financial reporting structures – Calendars • Accounting Calendars (cont’d) • Creating the calendar initially generates 1 year worth of periods • If needed, customize the generated period names/dates while abiding by the basic validation rules: • • • • • The period names must be unique The period numbers must be unique within a year The standard period dates must not overlap There must be no gaps between the standard period dates or numbers An adjusting period date range must overlap with that of a standard period • Generate additional years using the same parameters that you initially specified to create your calendar 37 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.

Implementation Concepts (3/3) Financial reporting structures – Calendars • Transaction Calendars • Implement transaction calendars only if your enterprise requires ledgers with average balance processing • Generate your transaction dates automatically by specifying the business day schedule. • Customize the generated dates to account for holidays or nonbusiness days specific to your enterprise 38 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.

Deltas with EBS Financial reporting structures – Calendars R12 EBS Added benefits Manual definition of accounting periods Automatic generation of accounting periods The implementation of accounting calendars has been streamlined in Fusion Financials to allow the system to automatically generate the accounting periods for commonly used standard/adjusting period frequencies. This allows you to save the time and effort of defining periods manually, and avoid erroneous data entries. If your enterprise uses a custom calendar, you must define the period details manually. Period type 39 Fusion Not applicable The EBS “Period Type” concept is no longer exposed in the Fusion Financials screens. You must create a new accounting calendar for different period types (frequencies), and this creation process has greatly been improved to allow the automatic generation of accounting periods. Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.

Best Practices Financial reporting structures – Calendars • Accounting Calendars Implementation question What is the difference between calendar year and fiscal year formats? This impacts what year to append when generating the period names for your accounting calendar: •Select the calendar year format to append the year of the period’s start date to the period name. •Select the fiscal year format to append the year associated with the period, regardless of its date range, to the period name. I plan to run the translation process in Fusion General Ledger. How does this impact my accounting calendar implementation? 40 Recommendations and best practices If you plan to run the translation process for any ledger associated with your accounting calendar, keep in mind the following rule: You cannot run translation for the first period of an accounting calendar. In the current release of Fusion General Ledger, we do not allow to create a calendar year with a fewer number of periods than what the period frequency dictates. Therefore, we recommend that you add a full extra year in your accounting calendar before the first opened period of any ledger using this calendar. For example, if you plan to start transacting in Jan-11, and intend to run translation for that same Jan-11 period, start your calendar in Jan10 (2010 year), add the 2011 year to your calendar, and then assign this calendar to your ledger with Jan-11 as the first opened period. Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.

Relevant Setup Tasks Financial reporting structures – Calendars 41 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.

Financial reporting structures Currencies 42 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.

Feature Summary Financial reporting structures – Currencies Maintain your currencies and define daily rates to record and run Maintain your currencies and define daily rates to record and run cross-currency transactions and accounting processes cross-currency transactions and accounting processes • Enable predefined currencies or create new currencies to use across your financial applications • Maintain your conversion rate types to categorize the relationships between your currencies and daily rates • Define daily rates between your currencies to record transactions or run processes involving multiple currencies 43 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.

Implementation Concepts (1/3) Financial reporting structures – Currencies • Currencies • All ISO currencies are predefined; you must enable the currencies you need for your financial transactions and processes • The “STAT” currency is also predefined and should be used for statistical data entry • If needed, you can define new currencies and customize them to fit your enterprise transactional requirements 44 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.

Implementation Concepts (2/3) Financial reporting structures – Currencies • Conversion rate types • Categorize the relationships between your currencies and daily rates using different conversion rate types • The rate types below are predefined in Fusion General Ledger, but you can define new rate types to fit your business needs Rate Type Description Corporate Generally used for standard market rates throughout your organization Spot Generally used to perform conversion based on the rate on a specific date EMU Fixed Used to define rates between the EUR currency and the national EMU currencies User The daily rates for the User rate type will be provided during data entry • Enable cross rates if you want the system to automatically derive the daily rates for each pair of currencies in a set consisting of a pivot currency and one or more contra currencies • Select a default conversion rate type to be used to derive the default daily rate in a foreign currency transaction 45 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.

Implementation Concepts (3/3) Financial reporting structures – Currencies • Daily Rates • A daily rate defines the exchange rate relationship between 2 currencies, using a specific conversion rate type and on particular conversion date • Daily rates are shared across all ledgers in Fusion General Ledger • Subledger applications share the same daily rates with the general ledger, but different rate types provide each subledger the ability to convert transactions at different rates 46 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.

Best Practices Financial reporting structures – Currencies • Daily rates Implementation question How do I create daily rates? 47 Recommendations and best practices •Use the ADFdi spreadsheet to create, update or delete daily rates. You may also use the user interface to update or delete existing daily rates. •Alternatively, your enterprise may decide to use its own processing mechanism to upload rates directly to the daily rates interface table. Run the “Import and Calculate Daily Rates” process to import your rates into the daily rates table and ready them for use. Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.

Relevant Setup Tasks Financial reporting structures – Currencies 48 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.

Additional Resources • Oracle Fusion Enterprise Structures Implementation and Configuration Considerations • Oracle Fusion Financials Enterprise Structures Implementation and Configuration Considerations – Part 2 • Oracle Fusion General Ledger Implementation and Configuration Considerations 49 Copyright © 2011, Oracle and/or its affiliates. All rights reserved. Oracle Proprietary and Confidential.

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