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2. 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

3. Oracle Fusion FinancialsEnterprise StructuresImplementation and Configuration Considerations – Part 1

4. Agenda • Overview • Key Features • Financial Reporting Structures • Charts of accounts • Calendars • Currencies • Additional Resources 4

5. OverviewFinancial 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

6. OverviewKey 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

7. Financial reporting structures Charts of accounts 7

8. Feature Summary (1/2)Financial reporting structures – Charts of accounts • 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 Create your charts of accounts to organize and track your financial transactions and reporting 8

9. 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

10. Key Decisions (1/2)Financial reporting structures – Charts of accounts 10

11. Key Decisions (2/2)Financial reporting structures – Charts of accounts 11

12. ImplementationConcepts (1/9)Financial reporting structures – Charts of accounts Chart of accounts structure Chart of accounts structure instance 12

13. ImplementationConcepts (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

14. ImplementationConcepts (3/9)Financial reporting structures – Charts of accounts • Example: Chart of accounts structures and instances Second balancing segment Natural account segment Primary balancing segment 3 2 1 Dynamic account creation disabled Dynamic account creation enabled 14

15. ImplementationConcepts (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 15

16. ImplementationConcepts (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

17. ImplementationConcepts (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 Example • 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

18. ImplementationConcepts (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: 18

19. ImplementationConcepts (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. Example Legend Geographical hierarchy Management hierarchy 2010 version 2010 version 2011 version Access granted Access denied 19

20. ImplementationConcepts (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: Example 20

21. Deltas with EBSFinancial reporting structures – Charts of accounts 21

22. Best Practices (1/11)Financial reporting structures – Charts of accounts • To streamline your chart of accounts implementation, follow the steps below: • Create your value sets with no values • Create your chart of accounts structure and specify your segment labels • Create your chart of accounts (structure instance) • Create your value set values and specify mandatory attributes • (Optional) Create and publish your account hierarchies • (Optional) Define segment value security rules • (Optional) Define cross validation rules 22

23. Best Practices (2/11)Financial reporting structures – Charts of accounts • General implementation considerations 23

24. Best Practices (3/11)Financial reporting structures – Charts of accounts • Value sets 24

25. Best Practices (4/11)Financial reporting structures – Charts of accounts • Chart of accounts structure 25

26. Best Practices (5/11)Financial reporting structures – Charts of accounts • Chart of accounts structure (cont’d) 26

27. Best Practices (6/11)Financial reporting structures – Charts of accounts • Chart of accounts 27

28. Best Practices (7/11)Financial reporting structures – Charts of accounts • Chart of accounts (cont’d) 28

29. Best Practices (8/11)Financial reporting structures – Charts of accounts • Value set values 29

30. Best Practices (9/11)Financial reporting structures – Charts of accounts • Value set values (cont’d) 30

31. Best Practices (10/11)Financial reporting structures – Charts of accounts • Account hierarchies 31

32. Best Practices (11/11)Financial reporting structures – Charts of accounts • Account hierarchies (cont’d) 32

33. Relevant Setup TasksFinancial reporting structures – Charts of accounts • Under the Financials offering locate the Define Chart of Accounts task grouping and navigate to the tasks needed to successfully bring your chart of accounts implementation into completion Define Common Applications Configuration for Financials • Define Enterprise Structures for Financials • Define Financial Reporting Structures • Define Chart of Accounts • Manage Charts of Accounts • Manage Chart of Accounts Value Sets • Manage Account Hierarchies • Publish Account Hierarchies • Manage Account Combinations • Manage Segment Value Security Rules • Manage Cross-Validation Rules • Manage Chart of Accounts Mappings(1) • Manage Chart of Accounts Synchronization with DRM • Maintain Segment Value Attributes(2) • Covered in the Oracle Fusion General Ledger Implementation and Configuration Considerations implementation training • Navigate to this task to run the Inherit Segment Value Attributes process 33

34. Financial reporting structures Calendars 34

35. Feature SummaryFinancial reporting structures – Calendars • 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 Create your calendars to record and track your transactions by accounting periods and business days 35

36. ImplementationConcepts (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 • 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

37. ImplementationConcepts (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

38. ImplementationConcepts (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 non-business days specific to your enterprise 38

39. Deltas with EBSFinancial reporting structures – Calendars 39

40. Best PracticesFinancial reporting structures – Calendars • Accounting Calendars 40

41. Relevant Setup TasksFinancial reporting structures – Calendars • Under the Financials offering locate the Define Calendars task grouping and navigate to the tasks needed to successfully bring your calendars’ implementation into completion Define Common Applications Configuration for Financials • Define Enterprise Structures for Financials • Define Financial Reporting Structures • Define Calendars • Manage Accounting Calendars • Manage Transaction Calendars 41

42. Financial reporting structures Currencies 42

43. Feature SummaryFinancial reporting structures – Currencies • 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 dailyrates between your currencies to record transactions or run processes involving multiple currencies Maintain your currencies and define daily rates to record and run cross-currency transactions and accounting processes 43

44. ImplementationConcepts (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

45. ImplementationConcepts (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 • 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

46. ImplementationConcepts (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

47. Best PracticesFinancial reporting structures – Currencies • Daily rates 47

48. Relevant Setup TasksFinancial reporting structures – Currencies • Under the Financials offering locate the Define Currencies task grouping and navigate to the tasks needed to successfully bring your currencies implementation into completion Define Common Applications Configuration for Financials • Define Enterprise Structures for Financials • Define Financial Reporting Structures • Define Currencies • Manage Currencies • Manage Conversion Rate Types • Manage Daily Rates 48

49. 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