In the last article we got an overview on FAH and in what aspect FAH differs from SLA. In continuation to that article we will discuss in detail the benefits of FAH.
Oracle Financial Accounting Hub (FAH) : Multi Level Drilldown
FAH replaces the legacy accounting systems/programs and provides a rule based accounting engine to generate accounting entries. FAH integrates the Product Systems to Oracle General Ledger (GL). Oracle standard FAH provides linkage from GL to SLA Journals i.e. the standard drilldown works from GL to SLA. Users can drilldown from GL to SLA journal Lines that provides additional sub-ledger details like Event model details, Supporting References, Identifiers and Descriptions etc. These details are useful enough to reconcile the transactions/records between GL and SLA. Based out of our FAH implementation experiences we felt that the industry and the business users needs more in addition to this FAH standard drilldown from GL to SLA. Users' needs another layer of drilldown to the transaction data wherein they can easily reconcile the GL data with SLA data and then to transaction data. The view to the transaction data enhances Users supports function to reconcile, view the raw data, error handling etc. We've built a custom solution that provides additional drilldown layer in FAH beyond SLA Journal. A custom form was built that present the view of the Transaction Object/Staging Table in FAH (wherein the transaction data is placed for FAH accounting entry generation). This form was linked with the SLA Journal form and with the selection of the SLA Journal line this form provides the number of the transaction object lines in the staging area. This way it links the GL data to SLA and SLA data to Transaction data. It provides multilevel drilldown views.
There could be different types of solutions in FAH like Pass through, Account derivations, Mappings and combinations of these. Based on the solutions the usability and importance of this custom drilldown can be enhanced. This Custom Drilldown not only helps business support functions like Reconciliations, Error & Suspense handling but also provide end to end view of how a product system transaction is transformed to a Journal. When used in conjunction with standard drill down this solution provides multi-dimensional view and presents summarized data view in GL, detailed accounting view and transaction Data view in FAH. It brings in short and long term benefits to an organization.
Benefits of Using Financial Accounting Hub (FAH)
One of the big benefits of FAH is that instead of the rules of the accounting transformation being buried in code, they are defined in the FAH application and are auditable, easy to change, consistent and transparent. Also you don’t need to maintain multiple different transformations to GL with bespoke code for each system, you are doing it with product which is performant, predictable etc. SLA is also not a separate product, it’s just an engine. But oracle wants to sell it as FAH. FAH is nothing but the "Concept" of integrating the third party with Oracle Ebiz through SLA. So we have reports on FAH and it totally based on the customer requirement and there is no standard FAH reports.
Financials Accounting Hub (FAH) provides an orderly, streamlined process to manage Financial Data of Source Systems. It houses the transformations from business event to accounting generation and then transfer’s balanced entries to GL.
FAH allows you to create detailed, auditable, reconcilable accounting from a variety of source systems. It includes an accounting transformation engine with validations plus accounting and rules repositories. The transformation engine consistently enforces accounting policies. The repositories provide centralized control, detailed audit trails, and simultaneously accommodates diverse corporate, management and reporting requirements.
FAH – What’s not for?
- Data Extraction
- Event Creation
- Calculation Engine for Source System calculations
- Inbuilt Intelligence for IFRS Accounting or any GAAP Accounting
Is FAH a fit for you? - FAH may be right for you if:
- Oracle EBS and/or PeopleSoft are not a good fit to replace your proprietary operational (ordering, billing, inventory, purchasing) systems;
- Detailed financial reporting is required on legacy system attributes not typically a part of the Chart of Accounts;
- Accounting requirements for legacy systems are complex and subject to change; and/or
- You are in the financial services (insurance, banking, and brokerage), telecommunications, or distribution industry.
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Architecture- Developed Later on ::
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