What is Oracle Accounting Hub Cloud?
Oracle Accounting Hub Cloud provides the option to bring transactional data from external systems into the cloud with use of the Subledger Accounting engine. Accounting Hub is a very useful solution if you want to utilize a single, rule-based accounting engine for various external applications that records your organization's day-to-day transactions.
These external applications (called Source Systems) are typically industry-specific applications that are either purchased from third parties, or they have been homegrown within the organization. Typically, these source systems are not be capable of generating rule-based accounting entries. Examples of such source systems could be core banking application, insurance policy administration system, billing applications, loan processing applications, and a point of sale (POS) system.
Rather than having a separate accounting rule logic for each source system, you can also register these systems in Oracle Cloud and use Accounting Hub for account derivation and have a unified accounting engine repository where you can maintain and apply your accounting rules, bring the data from all the external transactional applications, then push the accounting entries into the GL application.
Oracle Accounting Hub Cloud provides the option to bring transactional data from external systems into the cloud with use of the Subledger Accounting engine. Accounting Hub is a very useful solution if you want to utilize a single, rule-based accounting engine for various external applications that records your organization's day-to-day transactions.
These external applications (called Source Systems) are typically industry-specific applications that are either purchased from third parties, or they have been homegrown within the organization. Typically, these source systems are not be capable of generating rule-based accounting entries. Examples of such source systems could be core banking application, insurance policy administration system, billing applications, loan processing applications, and a point of sale (POS) system.
Rather than having a separate accounting rule logic for each source system, you can also register these systems in Oracle Cloud and use Accounting Hub for account derivation and have a unified accounting engine repository where you can maintain and apply your accounting rules, bring the data from all the external transactional applications, then push the accounting entries into the GL application.
Advantage of using Oracle Accounting Hub
With the help of Oracle Accounting Hub Cloud, you can:
- Get the flexibility and control that you need in the implementation, expansion, and maintenance of user-defined subledgers to adopt in a flexible business environment.
- Configure accounting rules to meet your corporate and statutory requirements.
- Automate and control the processes that transform source system data to recording detailed auditable journal entries.
You can also use the modern reporting tools that are available in Oracle Cloud to reconcile the accounting journal entries. This will actually reduce the workload during the period-end processes. And you can also gain insightful information for your day-to-day business, for corporate performance, and for making business decisions.
Oracle Accounting Hub also helps you integrate and align information from virtually any source system into Oracle Financial Cloud services. It gives customers the freedom and flexibility to choose the tools they want we use to run their business as they start their transition to cloud-based computing. This capability provides a smooth transition to cloud computing for our Oracle Financials Cloud customers because they can continue their financial operations on existing systems while centralizing the critical information for management decisions, audit, and compliance to a central cloud service for easy access across the globe.
Oracle Accounting Hub also helps you integrate and align information from virtually any source system into Oracle Financial Cloud services. It gives customers the freedom and flexibility to choose the tools they want we use to run their business as they start their transition to cloud-based computing. This capability provides a smooth transition to cloud computing for our Oracle Financials Cloud customers because they can continue their financial operations on existing systems while centralizing the critical information for management decisions, audit, and compliance to a central cloud service for easy access across the globe.
How does Oracle Accounting Hub Work?
For Example, you have an external Point-Of-Sale (POS) application where you actually manage your day-to-day transactions. We will register this POS system as a User-defined Subledger application within the Oracle ERP Cloud and import its transactions. With the use of the Accounting engine, we are going to generate the accounting entries of these transactions based on the rules that we have configured. And finally, these accounting entries are posted to the General Ledger application. From there, we can utilize the balances for complying with the management reporting requirements, audits and reconciliations, and to comply with statutory reporting requirements as well.
Accounting Hub Cloud Components
General Ledger. Oracle Accounting Hub Cloud comes along with Oracle General Ledger, where you will post all your actual balances. Oracle General Ledger provides journal entry import and creation, real-time balance storage, and accounting controls, intercompany balancing, and the period close functionality. It also comes along with a calculation manager, which helps you to define allocation rules using complex formulas. It helps you to automatically generate the allocation journals based on those allocation rules and helps you in also utilizing the in-house journal approval solution. And finally, you can also utilize the GL for your year-end process management as well. When journals are posted, the Essbase Cube, a multi-dimensional table that holds journal balances, is updated and you can generate reports of your organization's financials data.
Financial Reporting. Oracle Accounting Hub Cloud uses various Financial Reporting tools built in Oracle Cloud. Financial reporting is dependent on the data that is stored in the Essbase Cube, which will help you in faster and easier access to your balances by using various reporting tools.
Every time a transaction or journal is posted in the journal ledger, the balances cubes are updated at the same time with pre-aggregated balances at every level of summarization in your account hierarchy. This is leveraged by reports for quick processing. And you can extract the data in a much faster way because it is stored in a pre-aggregated format.
It helps you to slice and dice the data across dimensions. So you can easily move the definitions from rows and to columns, columns to rows. You can place them in terms of the page level. So it exactly works like a work table. And apart from that, you also get the flexibility to drill up and down and across on any parent level within the scope of your journal accounts.
Tools like Oracle Transactional Business Intelligence (OTBI) and the BI Publisher allows you to use seeded Financial reports across your enterprise in multiple formats. It gives you the flexibility to extract your balances in various formats including PDF, Excel, PPT, Word, etc. So that gives you a lot of flexibility because different stakeholders would like the data to be in their respective format so that they can utilize in a proper way.
Every time a transaction or journal is posted in the journal ledger, the balances cubes are updated at the same time with pre-aggregated balances at every level of summarization in your account hierarchy. This is leveraged by reports for quick processing. And you can extract the data in a much faster way because it is stored in a pre-aggregated format.
It helps you to slice and dice the data across dimensions. So you can easily move the definitions from rows and to columns, columns to rows. You can place them in terms of the page level. So it exactly works like a work table. And apart from that, you also get the flexibility to drill up and down and across on any parent level within the scope of your journal accounts.
Tools like Oracle Transactional Business Intelligence (OTBI) and the BI Publisher allows you to use seeded Financial reports across your enterprise in multiple formats. It gives you the flexibility to extract your balances in various formats including PDF, Excel, PPT, Word, etc. So that gives you a lot of flexibility because different stakeholders would like the data to be in their respective format so that they can utilize in a proper way.
Accounting Transformations. To transform the transactional data into Subledger accounting Entries, you need to use the accounting transformations. Accounting transformation is a mechanism that helps you to manage the journal entries for the transactions that would have been recorded in a third party system.
You will actually transform the transactional data that is imported from those third party applications into actual journal entries. And finally, those journal entries are pushed and posted to the journal ledger application.
For more information on Accounting Transformations, check out a separate in-depth article: Accounting Transformation Configurations in Accounting Hub Cloud.
Outbound Integration. You can also manage outbound integrations with Oracle E-Business Suite and PeopleSoft General Ledgers if you're already managing your transactional activities in any one of these two applications. You can even get the final posted balances from the GL of these applications into the Oracle Accounting Hub platform.
You will actually transform the transactional data that is imported from those third party applications into actual journal entries. And finally, those journal entries are pushed and posted to the journal ledger application.
For more information on Accounting Transformations, check out a separate in-depth article: Accounting Transformation Configurations in Accounting Hub Cloud.
Configurations needed for Oracle Accounting Hub Cloud
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- You will need to Register Source Systems into Oracle Cloud using the Rapid Implementation Spreadsheets
- Create the needed Accounting Transformations.
- Upload the transactional data using various mechanisms such as a file-based data import or a web service
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