Financial Accounting Hub (FAH)

What is Financial Accounting hub (FAH)

The Financial Accounting Hub is an integration tool which enables customers to integrate data from Non-Oracle source systems or sub-ledgers such as Billing/Banking, any 3rd Party Accounting or Insurance systems.  Specific rules can be applied to the data as it passes through the hub into the Oracle General Ledger. Oracle Financials Accounting Hub enables the transformation of information from disparate systems into a centrally and consistently maintained accounting repository. The core strengths of Oracle Financials Accounting Hub include its ability to create a single source of accounting truth for multiple external and legacy systems using business user-defined accounting rules. 

Oracle Financials Accounting Hub allows the integration of External Application by centralizing the definition and maintenance of accounting rules in a business user orientated repository. Accounting journals are created with a rules transformation engine, validated, and stored in an auditable format in a single location.  FAH acts as the accounting engine for any sub-ledger (Oracle or non-Oracle), create adjusting journal entries, and provide drill back from General Ledger (GL) to FAH,

How Does FAH Works:

FAH is an uptake of SLA. It is basically standalone Subledger Accounting (SLA), it allows to use Oracle SLA and GL to perform the accounting for third party / External applications.

Using Accounting Method Builder (AMB) Tool, FAH Efficiently Create Accounting for Multiple Heterogeneous Source Systems Oracle Financials Accounting Hub provides a flexible rules builder for business users to create accounting rules once and deploy them many times across different external and legacy systems. Legacy systems that do pre-accounting can pass journals through the hub to validate and store the accounting in the accounting repository for a single, reliable, enterprise wide view.

Financial Accounting Hub (FAH) V/S Sub-Ledger Accounting (SLA)

• The Financial Accounting Hub (FAH) is very similar to the Subledger Accounting product (SLA). In fact, looking merely at the functionality, there's no difference between FAH and SLA.
• The only distinction between both products is that with SLA you get seeded event models for all Oracle Subledger modules that require accounting and if desired one can use the components from these seeded event models to create your own customized Subledger Accounting Method.
• While with a FAH organizations get the possibilities to register external applications as Subledger, from which they can build their own event model, and use the SLA functionality to create accounting for the events originating from their external applications.

FAH Event Model:

FAH/SLA uses an Event Model consisting of Event Entities with underlying Event Classes, and at the lowest level we have the Event Types which in their turn belong to the Event Classes.

The accounting is entirely event-driven meaning that for each Event Type you can define how you would like the accounting to be created. This is done using Journal Line Types, Journal Entry Descriptions and Account Derivation Rules which tie together in a Journal Lines Definition. Conditions can be applied at various levels, and optionally you can use Mapping Sets and/or Supporting References.

For each Event Type such a Journal Lines Definition can be build. These Journal Lines Definitions roll up into an Application Accounting Definition.  The Application Accounting Definitions are grouped together under a Subledger Accounting Method, which is the component that gets tied to the ledger (In R12 a ledger consists of calendar, currency, chart of accounts and Subledger Accounting Method).

FAH transaction Flow:

FAH allows to use Oracle SLA and GL to perform the accounting for third party applications. Using Accounting Method Builder (AMB) Tool, The Application Accounting Events, Accounting events of source External application are mapped and stored in the SLA tables. External/Source Application’s accounting event’s for, accounting attributes and transactions supporting references are kept in FAH transactions objects.  When user submits accounting program,

• Accounting program fetches the applicable accounting events from SLA Tables depending the External application and Event model.
• The Configured Accounting definition rules are then applied and Loaded FAH transactions objects
• journal entries for the External Application are then created and stored in the SLA Tables.
• SLA journal entries for External application are transferred to GL using standard Oracle Transfer to GL Program.

Sub-ledger Accounting Configuration - Part 1

Sub Ledger Accounting method (SLAM):

SLA is a rule based accounting Engine that introduced the ability to define how transactions originating in Sub Ledgers can be Accounted. Hence in order achieve this high level of flexibility SLA is accommodated with lot of configurable and predefined components.

This article will talk about different Predefined and configurable components of SubLedger Accounting which are used to setup accounting rules in order to achieve various accounting requirement.

Below mentioned are Predefined Components of SLA. We will talk about their specific Examples as we move on.

Predefined Components of SLA:

Entities:

Entities in SLA represent a Specific Document category in the Application. For example an Invoice or Payment in Account Payables. 

Event Class:

Event Class in SLA represents a specific type of the entity for which the Corresponding accounting entry will be generated. For Example a Standard Invoice is a Type Of invoice there by Standard Invoice will be an Event class for the Entity AP Invoice.

Event Type:

Event type is an Action or an event which should be defined as trigger for the creation of accounting entries.

For example: in reference to a Standard accounting requirement an Standard Invoice should get accounted once it is validated. Hence the Event which will initiate the accounting for the invoice is Validation. So Standard invoice validation is the Event Type for Event Class Standard Invoice

In Order to explain the complete concept let’s take one more example.

There should be accounting entries generated for Cancellation of a credit memo. And hence Credit Memo is a Type of Account Payables invoice.

Entities à AP invoice

Event Class à Credit Memo

Event à Cancellation.

Sub-Ledger Accounting

Sub-Ledger Accounting

Sub ledger accounting traditionally had accounting rules spread across multiple Products and Sub ledger applications hence it was Difficult to keep the rules up to date and manage.

And if there used to be any requirement which requires a different Accounting treatment as per different geographies, Regulations  or entity it was extremely difficult to implement and many times the ultimate solution was to implement a customization or pass manual Adjustment entries.

The New Sub Ledger accounting feature of oracle E-business Suite R12 popularly known as SLA addresses such issues through a central accounting rule engine allowing among other things, Superior controller ship of definition of accounting rules.

SLA is a rule based accounting Engine that introduced the ability to define how transactions originating in Sub Ledgers can be Accounted. One of the significant benefits of SLA is the ability to generate multiple accounting representations (IFRS and local GAAP) for a single sub ledger transaction.

Hence in Simple words, Different from 11i where accounting Entries used to get created in respective Sub ledgers and then get transferred to GL, In R12 the Entries get created using SLA for all the Sub ledger applications and then gets transferred to GL. Hence it would be appropriate to say SLA is placed between different Sub ledgers such as AP, AR, CE, PA and General Ledger as mentioned in below. 

Sub Ledger Accounting Gives capability to Massage/ Change the accounting entries which gets generated as part of the Standard Sub Ledger application specific account so as to have the accounting entries posted to the desired accounts to address various geographies or entity specific accounting requirement

Above Example shows how the accounting String (A.B.C.D) generated by SubLedger Applications (Eg: AP, AR, CE) can be altered to A1.B1.C1.D1 to achieve specific Accounting requirement and then can be transferred to general Ledger.

General Ledger - Sub ledger - Project Accounting Drill Down

General Ledger - Sub ledger - Project Accounting Drill Down

Well This Is Definitely one of the Complicated One!

Not very Often though but you have a Project which involves Project accounting, and you are working on Reports / or Customization which need an integration form Oracle Projects, General Ledger and Sub-ledger Accounting, you need a very good understanding of how various Database tables of these Different Modules Link with each other.

B Below is a query which can be leveraged to Drill Down or Drill up for the data between

GENERAL LEDGER
SUB-LEDGER ACCOUNTING
PROJECT ACCOUNTING


select
GL.NAME,GJH.JE_HEADER_ID,GJH.JE_CATEGORY,GJH.JE_SOURCE,GJH.NAME,GJH.STATUS, GLL.JE_LINE_NUM,GCC.CONCATENATED_SEGMENTS,XAL.ACCOUNTING_CLASS_CODE,PA.PROJECT_ID,PA.SEGMENT1,PA.NAME,PA.PROJECT_TYPE,PT.TASK_ID,PT.TASK_NUMBER,PT.TASK_NAME,PCD.EXPENDITURE_ITEM_ID,
PE.EXPENDITURE_ITEM_DATE ,
PE.TRANSACTION_SOURCE,
PE.EXPENDITURE_ITEM_DATE ,PE.EXPENDITURE_ITEM_DATE
,888
,PCD.*
--,8,GIR.*,8,XAH.*,8,XAL.*,8,XDL.*,8,PCD.*
from
APPS.GL_JE_HEADERS GJH,
APPS.GL_JE_LINES GLL,
APPS.GL_CODE_COMBINATIONS_KFV GCC,
APPS.GL_IMPORT_REFERENCES GIR,
APPS.GL_LEDGERS GL,
APPS.XLA_AE_LINES XAL,
APPS.XLA_AE_HEADERS XAH,
APPS.XLA_DISTRIBUTION_LINKS XDL,
APPS.PA_COST_DISTRIBUTION_LINES_ALL PCD,
APPS.PA_PROJECTS_ALL PA,
APPS.PA_TASKS PT,
APPS.PA_EXPENDITURE_ITEMS_ALL PE,
APPS.PA_TRANSACTION_SOURCES PTS
WHERE 1=1
AND GJH.LEDGER_ID = GL.LEDGER_ID
AND GJH.JE_HEADER_ID = GLL.JE_HEADER_ID
AND GJH.JE_HEADER_ID = GIR.JE_HEADER_ID
AND GLL.CODE_COMBINATION_ID = GCC.CODE_COMBINATION_ID
AND GLL.JE_LINE_NUM = GIR.JE_LINE_NUM
AND GIR.GL_SL_LINK_ID = XAL.GL_SL_LINK_ID
AND XAL.AE_HEADER_ID = XAH.AE_HEADER_ID
AND XAL.AE_HEADER_ID = XDL.AE_HEADER_ID
AND XAL.AE_LINE_NUM = XDL.AE_LINE_NUM
AND XDL.SOURCE_DISTRIBUTION_ID_NUM_1 = PCD.EXPENDITURE_ITEM_ID
AND PCD.EXPENDITURE_ITEM_ID = PE.EXPENDITURE_ITEM_ID
AND PE.TRANSACTION_SOURCE = PTS.TRANSACTION_SOURCE
--AND PE.TRANSACTION_SOURCE LIKE 'PA%'
AND PCD.PROJECT_ID = PA.PROJECT_ID
AND PCD.TASK_ID = PT.TASK_ID
AND PA.PROJECT_ID = PT.PROJECT_ID
AND TRUNC(GJH.CREATION_DATE) > TRUNC(SYSDATE-25)
--AND UPPER(GJH.JE_CATEGORY) LIKE UPPER('PROJECT%')
AND UPPER(GJH.JE_SOURCE) LIKE UPPER('Project Accounting%')

General Ledger - Accounts Payables Drill Down - Data Base

General Ledger - Accounts Payables Drill Down - Data Base Query


As Part of Regular GL , Accounts Payables Designing and Troubleshooting, It is required to have a good Understanding of the Links between Various General Ledger and Accounts Payables Table involving Sub-ledger accounting tables, Below is a select statement which provides you the link between GENERAL LEDGER, ACCOUNTS PAYABLES AND  SUB-LEDGER ACCOUNTING Data base Tables

select --distinct aia.invoice_num
GL.NAME,GJH.JE_HEADER_ID,GJH.JE_CATEGORY,GJH.JE_SOURCE,GJH.NAME,GJH.STATUS, GLL.JE_LINE_NUM,GCC.CONCATENATED_SEGMENTS,XAH.GL_TRANSFER_STATUS_CODE,XDL.ROUNDING_CLASS_CODE,XDL.APPLIED_TO_ENTITY_CODE
,AIA.INVOICE_ID,AIA.INVOICE_NUM,AIA.INVOICE_AMOUNT,AIL.LINE_NUMBER,AIL.LINE_TYPE_LOOKUP_CODE,AIL.AMOUNT,GL.CURRENCY_CODE "MRC CURRENCY",GLL.ACCOUNTED_DR,GLL.ACCOUNTED_CR
--,8,GIR.*,8,XAH.*,8,XAL.*,8,XDL.*
from
APPS.GL_JE_HEADERS GJH,
APPS.GL_JE_LINES GLL,
APPS.GL_CODE_COMBINATIONS_KFV GCC,
APPS.GL_IMPORT_REFERENCES GIR,
APPS.GL_LEDGERS GL,
APPS.XLA_AE_LINES XAL,
APPS.XLA_AE_HEADERS XAH,
APPS.XLA_DISTRIBUTION_LINKS XDL,
APPS.AP_INVOICE_DISTRIBUTIONS_ALL AID,
APPS.AP_INVOICE_LINES_ALL AIL,
APPS.AP_INVOICES_ALL AIA
WHERE 1=1
AND GJH.LEDGER_ID = GL.LEDGER_ID
AND GJH.JE_HEADER_ID = GLL.JE_HEADER_ID
AND GJH.JE_HEADER_ID = GIR.JE_HEADER_ID
AND GLL.CODE_COMBINATION_ID = GCC.CODE_COMBINATION_ID
AND GLL.JE_LINE_NUM = GIR.JE_LINE_NUM
AND GIR.GL_SL_LINK_ID = XAL.GL_SL_LINK_ID
AND XAL.AE_HEADER_ID = XAH.AE_HEADER_ID
AND XAL.AE_HEADER_ID = XDL.AE_HEADER_ID
AND XAL.AE_LINE_NUM = XDL.AE_LINE_NUM
AND AID.INVOICE_ID = AIA.INVOICE_ID
AND AIL.INVOICE_ID = AIA.INVOICE_ID
AND AIL.INVOICE_ID = AID.INVOICE_ID
AND AIL.LINE_NUMBER = AID.INVOICE_LINE_NUMBER
AND XDL.SOURCE_DISTRIBUTION_ID_NUM_1 = AID.INVOICE_DISTRIBUTION_ID
AND TRUNC(GJH.CREATION_DATE) > TRUNC(SYSDATE-25)
AND UPPER(GJH.JE_SOURCE) LIKE UPPER('Payable%')
AND AIA.INVOICE_NUM LIKE 'EXP360319%'
AND GL.LEDGER_CATEGORY_CODE NOT IN ('ALC','SECONDARY')
order by aia.invoice_num;

General Ledger - Sub-ledger Accounting Dril Down

As Part of regular Designing and Trouble shooting of General Ledger and Subledger Accounting Analysis it is required to have knowledge of Technical Drill Down and Link between GL and Subledger Tables.

Please see the Below mentioned select Statement to Identify relation between various tables for DrillDown from GL To Subledger and Vice Verse.



select
GL.NAME,GJH.JE_HEADER_ID,GJH.JE_CATEGORY,GJH.JE_SOURCE,GJH.NAME,GJH.STATUS, GLL.JE_LINE_NUM,GCC.CONCATENATED_SEGMENTS,XAL.ACCOUNTING_CLASS_CODE,xal.*
,8,GIR.*,8,XAH.*,8,XAL.*,8,XDL.*--,8,PCD.*
from
APPS.GL_JE_HEADERS GJH,
APPS.GL_JE_LINES GLL,
APPS.GL_CODE_COMBINATIONS_KFV GCC,
APPS.GL_IMPORT_REFERENCES GIR,
APPS.GL_LEDGERS GL,
APPS.XLA_AE_LINES XAL,
APPS.XLA_AE_HEADERS XAH,
APPS.XLA_DISTRIBUTION_LINKS XDL
WHERE 1=1
AND GJH.LEDGER_ID = GL.LEDGER_ID
AND GJH.JE_HEADER_ID = GLL.JE_HEADER_ID
AND GJH.JE_HEADER_ID = GIR.JE_HEADER_ID
AND GLL.CODE_COMBINATION_ID = GCC.CODE_COMBINATION_ID
AND GLL.JE_LINE_NUM = GIR.JE_LINE_NUM
AND GIR.GL_SL_LINK_ID = XAL.GL_SL_LINK_ID
AND XAL.AE_HEADER_ID = XAH.AE_HEADER_ID
AND XAL.AE_HEADER_ID = XDL.AE_HEADER_ID
AND XAL.AE_LINE_NUM = XDL.AE_LINE_NUM
--AND XDL.SOURCE_DISTRIBUTION_ID_NUM_1 = PCD.EXPENDITURE_ITEM_ID
--AND TRUNC(GJH.CREATION_DATE) > TRUNC(SYSDATE-10)
--AND GCC.SEGMENT6 != '000'
--AND UPPER(GJH.JE_CATEGORY) LIKE UPPER('PROJECT%')
--AND UPPER(GJH.JE_SOURCE) LIKE UPPER('Project Accounting%')
and gjh.je_header_id = <je header ID>
and gll.je_line_num =<JE LINE NUMBER>