The need for organizations across the globe to grow, both organically and inorganically, is more pertinent than ever before. As organizations are growing big with acquisitions (sometimes across borders) almost every day, they are faced with the challenge of disparate accounting systems which come as a part of it.
Even organizations that are growing organically need to adapt to multiple legacy systems, record a different set of transactions and should have the latest standardized fusion reporting across the organization. Fusion Accounting Hub (FAH) from Oracle is one such answer to the need of having a consistent and accurate representation of accounting and financial information.
Clover Infotech, a comprehensive IT services provider and a preferred partner for Oracle ready ERP Cloud in India, is enabling customers to create a single source of accounting truth with its Oracle Fusion Accounting Hub (FAH).
Creating consistent accounting and reporting of financials with Oracle Fusion Accounting Hub (FAH)
Oracle Fusion Accounting Hub (FAH) creates consistent and auditable accounting for all source systems – external and legacy. The FAH consists of an accounting transformation engine that enforces uniform accounting policies on data across multiple source systems. It has configurable accounting rules and once the data passes through the accounting rules engine, it applies accounting methods, rules and policies to convert into consistent accounting information and store it in FAH General Ledger repository.
From thereon, it provides a platform to consolidate and generate financial data for the whole organization, create customizable reports, dashboards and perform financial analysis. It thus helps you to meet compliance requirements easily as there is a consistent and uniform source of accounting for all external and legacy systems.
It enables to comply with multi-GAAP accounting requirement and store information for reporting and reconciliation. FAH enables to store transaction and supporting reference information into an accounting repository. This repository forms the basis for reporting and acts as a fodder for analytics. Geographies, industry type, fund manager etc. could be used as supporting references to view the data from multiple dimensions and make inferences as per various parameters.
Managing multiple systems as well as new integrations
FAH provides an efficient rules builder that enables business users to create accounting rules, store it and apply it across different systems. If the legacy system is not equipped for accounting, it can use the rules builder to track and transform transactions as per the rules. FAH accounting engine also enables to account for specific business events or for all events that occur with respect to a specific application.
Due to its ability to adapt to new requirements, FAH is an efficient tool to cater to events such as integrating new-age systems or managing the books when a new company is acquired. As the FAH can implement both journal-pass through solutions as well as raw-transaction based accounting solutions, new systems and products can be added seamlessly. The rules repository enables users to define setups for every component of a journal entry. They can also reuse them for similar kind of requirements.
Video by Mr.Manish Asawa on Oracle Fusion Accounting Hub & FAHRCS resolving the financial data integration complexities
How does implementing Oracle FAH help?
By implementing Oracle FAH, the monthly closure processes can be managed seamlessly. As the FAH stores the entire journal when an error occurs, it enables to address the errors efficiently. Its robust exception management enables users to identify and resolve exceptions easily.
The Oracle Fusion Accounting Hub (FAH) can leverage Oracle’s SOA platform and fusion accounting hub middleware. This enables to track, monitor and control the end-to-end processing of accounting transactions. Due to a single, consistent and uniform view across the organization, easy internal controls and audits can be put into place.
This ensures successful reviews and compliance in a timely and seamless manner. It also minimizes manual corrections with draft accounting feature. It allows users to preview the rules and transaction information both on-line and in the reports. The users can correct the information before they decide to save it. The FAH enables users to drill down from General Ledger to specific journal entries in the accounting repository. This helps to give a comprehensive understanding of businesses and business events and its impact on the organization.
Benefits of Oracle Fusion
Flexible Accounting for Multiple, Heterogeneous Source Systems
Create Accounting for several source system becomes an easy task as flexible rules builder is used to create several accounting events & accounting methods once then deployed them in several occasions for different sources
Quick updating of Rules in the event of changes in regulators
The user may need this feature in case of changes are being made in accounting regulations or corporate structure requiring quick application with the effective dating of rules.
Agile to integrate with New System
The rules engine allows users to separately define and reuse setups for each component of a journal entry such as the journal lines, descriptions, and summarization criteria. These setups can be reused to rapidly integrate new source systems into FAH.
Sophisticated error and exception handling
The error and exception handling provides quick fixation scope to resolve accounting error. Users can quickly differentiate research, and resolve exceptions with business oriented exception management and on-line inquiries.
More Controls and Insights
Due to its centralized architecture, Oracle Fusion accounting Hub provides a robust structure where a user has internal control to ensure successful audit and compliance reviews. Oracle Accounting system (FAH) is locally integrated with Oracle General Ledger and Oracle Sub-ledger Accounting. Users can drill from Oracle General Ledger balances to the specific journal lines in the accounting repository that comprise that balance.
We enable our customers to understand Oracle FAH. Through our consultative approach, we help our customers to understand how they can implement Oracle accounting package FAH for their business and derive value for their business. We can also ensure that the Oracle FAH runs seamlessly so that business users across the organization can seamlessly manage accounting for the organization, derive useful business insights and take seamless decisions.
We also enable our customer to move to the Cloud with Oracle FAH reporting cloud solutions (FAHRCS). Your organization and business will always be in a constant dynamic state. There will be new rules and regulations at a nation-wide and macro level. There will be a lot of organizational changes that lead to the creation of new systems getting integrated.
The legacy systems are not always easy to carry along. There would also be a host of external systems that you need to integrate for smooth business functioning. For such dynamic and growing businesses, Oracle FAH is an apt investment that can create efficiency in business and more importantly, compliance with all rules and regulations.
Case study : Oracle FAH implemented to streamline multiple data-source
Infographics : Oracle FAHRC