EBS Oracle Financials

Dynamic Financial Management
Oracle Financials: The Complete Solution for
Financial Control, Growth, and Performance

Information-Driven Finance—
Only from Oracle

Do you spend too much time on transaction
processing and too little on decision support?
Do you want to speed closing? Are you struggling
to keep pace with regulatory changes? Do you
need better enterprisewide visibility?

Today’s fast-growing and dynamic organizations demand financial management
solutions that can quickly adapt to changing business needs while helping
them reduce costs, make smarter decisions, and continuously innovate. Oracle
Financials, the financial applications in Oracle E-Business Suite, improves
visibility, control, and efficiency while setting the foundation for good governance
and consistent growth.

As part of Oracle E-Business Suite, Oracle Financials is a complete, compre-
hensive, and integrated suite of applications built on a standard financial platform
with centralized components for business functions such as accounting, customer
and supplier data, tax, payments, and intercompany accounting. Its integration
with Oracle Fusion Governance, Risk, and Compliance facilitates financial control
and corporate governance, and provides a holistic approach to compliance and risk
management. And its integration with Oracle enterprise performance management
applications supports effective financial planning, consolidation, and regulatory
reporting. Oracle’s solutions work together to help companies accelerate financial
processes, enforce compliance, and free resources to grow the business. Oracle
Financials can help you
• Establish global processes and gain global visibility into business operations
• Quickly accommodate changes to your business
• Enforce a single source of truth for accurate analysis and reporting
• Meet multiple reporting and regulatory requirements for a variety of
industries and countries

3

Fact: 1,000 businesses that comply with Section 404 were surveyed: More than half
reported that 80 percent of their key controls are still manual.
Fact source: Compliance Week, “404 Study Shows Little Automation Yet, November 2009
”

Improve Operational Efficiency and Productivity
Oracle Financials helps organizations of all sizes, industries, and geographies increase
efficiency and reduce back-office costs. It does so by employing standardized processes
to enforce consistent business practices and by using automated processes and
productivity tools to accelerate the close process.

enforce enterprisewide standards and consistency
Offering configurable rules engines and centralized business functions, Oracle Financials
helps finance organizations (especially those with shared services models) enforce
enterprisewide standards and common business practices. Key to those processes
are the following engines:
• centralized accounting engine. A common accounting engine that is highly
configurable and leveraged across Oracle E-Business Suite allows you to standardize
your accounting policies, document them as user-defined rules, and distribute them
across the entire enterprise—ensuring that everyone adheres to the same accounting
standards. The rules you define are flexible enough to accommodate the creation
of accounting entries based on virtually any transaction attribute. As a result, your
case in point: penn color finance staff can process transactions quickly—without worrying about how the
Using a single global financial-
entries are generated. In addition, you can define date-effective rules to anticipate
management system from
Oracle, Penn Color—a changes in accounting treatment (such as proposed changes to U.S. GAAP and IFRS).
multinational manufacturer And because the accounting engine is centralized, you need only update your rules
of pigment dispersions and in one place before deploying them across multiple subledgers—even third-party
color concentrates—obtained
a consistent and global view of systems from applications as diverse as billing systems for telecommunications,
product information including core banking platforms, and claims systems for insurance companies.
formulas, manufacturing • centralized banks and payments engine. The centralized bank model provides a
instructions, and raw ingredients
and substitutions. As a result, single access point for defining and maintaining internal bank accounts for use by
the company was able to multiple Oracle products. The centralized payments engine is used for both funds
drive quality and efficiency disbursement and capture to provide straight-through payment processing based on
improvements.
industry-standard protocols. Both the centralized bank model and payments engine
dramatically increase the efficiency of your shared service centers because you can
initiate a single payment run that spans multiple operating units, currencies, payment
methods, and bank accounts.
• centralized tax engine. A centralized tax engine and tax repository delivers
consistent tax services to all Oracle E-Business Suite business flows. Tax content
(such as jurisdictions, rates, and rules) is stored centrally and then used by the tax
engine to calculate transaction taxes (sales, use, VAT, and so on) in a consistent and
controlled fashion across business flows. The result: increased efficiency, fewer
errors, and reduced tax compliance costs.

4

increase productivity
Oracle Financials takes advantage of highly automated business processes and
sophisticated productivity tools to dramatically lower the costs of resource-intensive
tasks. Rather than simply automate inefficient and ineffective processes, Oracle
Financials automates entire business operations such as sales, finance, and purchasing
by applying industry best practices and policies, removing manual tasks, and eliminating
the need for re-entry of information.

Take, for example, internal requisitions processing: with Oracle Financials, this process
can be completely automated. After an employee enters a requisition for supplies, the
system routes it for approval and automatically creates a purchase order. It then uses the
advanced shipping notice sent by the supplier to create a receipt and an invoice. Once the
invoice is approved, it is automatically paid electronically. If the supplier also happens to
be a customer, the system can automatically net the payables to receivables balances to
eliminate unnecessary payments and reduce transaction fees and administrative costs.

Oracle Financials also can help you reduce training costs and increase efficiency via the
following productivity features:
• spreadsheet integration supports high-volume data entry within a familiar
environment across finance functions such as journal processing, budgeting, “With Oracle E-Business
reporting, and asset management. Suite, we now have
• imaging integration provides automatic scanning and intelligent document a platform that can
recognition of supplier invoices and employee expense reports and receipts. As support Penn Color’s
a result, images are automatically routed to the appropriate finance personnel for
global growth with
faster completion, approval, and payment processing.
consistent processes
• self-service portals allow finance professionals to shift administrative tasks to
and a single source
transaction originators—without losing control of the process. For example
of truth for critical
• suppliers can use Oracle iSupplier Portal to negotiate contracts, view purchase business information. ”
orders, submit change requests, update delivery schedules, enter invoices, view
chris Driscoll, Director,
payment status, and negotiate invoice holds—all without sending e-mails or Information Systems,
making phone calls. Penn Color
• customers can use Oracle iReceivables to view invoices and submit payments online.
• Department managers can transfer assets using Oracle iAssets to ensure accurate
ownership and location of the company’s assets.
• employees can use Oracle Internet Expenses to enter expense reports and view
the status of their submissions, while managers can use mobile devices (such as
the iPhone) to approve expenses.

5

Fact: 79 percent of external stakeholders believe that companies’ governance, risk, and
compliance functions need to be enhanced.
Fact source: ernst & Young, The Multi-Billion-Dollar Black Hole: Is Your Governance, Risk, and
Compliance Investment Being Sucked In?, 2010

close Your Books Faster
Used in concert with Oracle enterprise performance management applications, Oracle
Financials helps organizations increase the accuracy of financial reporting while
decreasing turnaround time. It does this by leveraging the following applications:
• oracle Hyperion Financial close Management. Providing centralized management
of all period-end close activities (for example, ledger and subledger close, data
loading and mapping, financial consolidation, 10K/10Q creation, reconciliations, and
more), this application replaces checklists that have traditionally been maintained
manually. With it, you can define, prioritize, and schedule close tasks and track their
status using notifications and alerts. What’s more, by using the central dashboard to
monitor the entire close process, you can immediately act on errors and delays, as
well as analyze processes to evaluate and improve close-cycle effectiveness.
• oracle Hyperion Financial Management. Consolidating period-end balances from
“Experian takes data disparate general ledger systems, this powerful financial application can also collect
security very seriously. nonfinancial information (for example, period-end headcount from HR, inventory
Oracle’s governance, risk, and operational metrics, and data on energy and water usage, carbon footprint, and
and compliance solutions social metrics). Its integration with Oracle Financials and Oracle Hyperion Disclosure
play an important role in Management provides eXtensible Business Reporting Language (XBRL) reporting
helping us maintain our to streamline the creation of financial filings to the SEC and other regulatory bodies.
In addition, Oracle Hyperion Financial Management reduces “control risk” with
customers’ trust.”
complete audit trails, workflows, internal review and certifications, controls, and
indrajit ray, Senior Software validations so you can be confident in your numbers.
Manager, Experian Information
Solutions

oracle Financials
Enforce Compliance and Controls
BeneFits-at-a-glance Although compliance with government regulations should produce more-accurate and
Deployment transparent financial reporting, it can only take an organization so far. That’s because
• Deploy applications on
without complete control over the processes through which financial information is
premise, on demand, or in a
combination of your choosing derived, it’s extremely difficult to achieve high levels of accuracy and transparency.

implementation
Together, Oracle Financials and Oracle Fusion Governance, Risk, and Compliance provide
• Speed implementations with

a faster time to value with that complete control, enabling you to respond to each new compliance mandate as
Oracle Business Accelerators part of a comprehensive program based on repetitive, sustainable processes. By taking
for midsize companies advantage of the combined solution, you can ensure compliance with multiple reporting
integration and tax mandates, enforce your corporate policies at various levels, and establish proper
• Easily integrate with existing
internal controls to mitigate risks.
applications and hardware
investments through Oracle’s
open integration platform

6

comply with Multiple reporting and tax requirements
Oracle Financials makes it easy for companies to comply with multiple accounting
requirements in a streamlined and automated fashion. Multiple ledgers can be assigned
to a legal entity to better meet statutory, corporate, regulatory, and management
reporting needs. For example, the accounting entry for a supplier invoice can satisfy
multiple accounting conventions (even if each requires a different chart of accounts,
calendar, accounting standard, and currency combination).

To help organizations remain in compliance with a complex and ever-changing landscape
of tax rules, rates, and jurisdictions, Oracle Financials provides a centralized tax engine
that calculates all types of transaction taxes based on multiple criteria (for example,
place of supply, ship-to address, parties involved, and other applicability rules). To enforce
companywide tax policy, you can define rules centrally and then share them across
multiple legal entities. All noteworthy tax information for each transaction is recorded in
a central tax repository that can be used by management and tax authorities for auditing
and reporting purposes. In addition, integration with external tax vendors (such as Vertex
and Taxware in the United States) makes it easy to maintain country-specific tax data.
The bottom line: by facilitating automated tax processing through a central integrated
engine, Oracle Financials can make your finance organization more efficient while helping
you reduce tax errors. oracle Financials
BeneFits-at-a-glance
Oracle Financials also provides multicurrency and multilanguage functionality to satisfy configuration
the most demanding global financial requirements. By taking advantage of these • Configure the system based

capabilities, you can perform transactions in any currency and maintain an unlimited on how your users work with
configurable pages, menus,
number of reporting currencies at multiple levels (including balance, journal, and trans-
and prompts, and provide a
action). Sophisticated currency management supports currency conversion, revaluation, flexible chart of accounts that
remeasurement, and translation—all in accordance with local and international supports up to 30 segments
accounting standards. Financial and Management
accounting
ensure policy compliance • Manage your global finance

organization from a single,
Oracle Financials provides a range of embedded controls to enforce compliance across
integrated system and comply
the organization. These include with multiple legislations,
accounting standards, and
• Cross-validation rules for chart of accounts data (to prevent inaccurate account
policies concurrently in a
combinations) single instance
• Centralized journal processing (to prevent inaccurate entries) • Accelerate decision-making
with integrated business
• Sequential document numbering (to meet legal requirements) intelligence and market-leading
• Comprehensive approvals for a variety of transaction types (to enforce corporate planning, financial consolida-
tion, and reporting solutions
policies across the enterprise)

7

Fact: Although data-driven decision-making is espoused by senior executives, formal
governance policies or procedures to ensure the consistency, integrity, and accuracy
of that data are rare.
Fact source: economist intelligence Unit, The Intelligent Enterprise: Creating a Culture of
Speedy and Efficient Decision-Making, December 2009

You can also set quantity and price limits for invoice processing as well as implement
two-, three-, and four-way matching to ensure that corporate policies are met, so you only
pay for goods or services you ordered and received—a good way to control spending. In
addition, you can require approval for any invoice or invoice line with a missing purchase
order to control unplanned purchases. This automated approach reduces risk, enforces
corporate policies and business rules, and simplifies auditing activities by making it easier
to test controls.

Mitigate risks and enforce strong internal controls
Oracle Financials and Oracle Fusion Governance, Risk, and Compliance provide a
unified framework for managing internal controls and facilitating financial and operational
audits. By streamlining all governance, risk, and compliance (GRC) activities—from
documentation, testing, remediation, and certification of end-to-end processes and
controls to managing enterprise risk—Oracle Fusion Governance, Risk, and Compliance
supports a common view of risk and compliance across requirements. This real-time
visibility, in turn, ensures greater financial control and business integrity.
case in point:
lHa asra groUp Continuously monitoring access policies, critical application setups, and transactions
LHA ASRA Group, a leading throughout Oracle applications, Oracle Fusion Governance, Risk, and Compliance also
U.K. housing and regeneration
reveals anomalies, errors, and internal fraud risks, and prevents future incidents by
agency, implemented Oracle
Financials to speed financial enforcing automated controls. Not only does the solution strengthen your compliance
processing and strengthen readiness and risk responsiveness—giving you the utmost confidence for certifying your
analysis, reporting, and control. financial statements—it also optimizes bottom-line performance by keeping your critical
The results: no more manual
processing and monthly accounts business processes in check.
produced in 8 days rather than 15.

Increase Visibility and Drive Performance
“Oracle Financials has
halved our month-end Together with Oracle enterprise performance management applications, Oracle Financials
allows organizations to accelerate planning and forecasting, create meaningful reports,
turnaround time.”
and gain enterprisewide visibility into financial performance.
Balwant Basran,
Head of Financial Systems,
LHA ASRA Group accelerate planning and Forecasting
Oracle Financials and Oracle enterprise performance management applications enforce
closed-loop processes for planning, budgeting, transacting, and measuring results.
Oracle Hyperion Planning adds budgeting and forecasting capabilities to the mix, making
it easy to monitor revenues and expenses against budgets and sales against forecasts.

8

create Meaningful reports oracle Financials
Oracle’s easy-to-use reporting tools allow nontechnical users to create professional-
Financial close Management
quality reports of all types. Operational reports leverage Oracle’s enterprise reporting • Accelerate the close process
server, Oracle Business Intelligence Publisher, which provides the flexibility to customize and increase the accuracy of
XML -based report layouts within a Web browser or via familiar desktop tools such as financial reporting
Microsoft Office and Adobe Acrobat. As a result, end users can create report formats, • Eliminate third-party solutions
change font colors, and add columns and logos from their own templates. Supported or offline collection methods
for producing XBRL -compliant
report formats include XML, PDF Excel, and standard text.
,
reports and sustainability
reports
For financial reporting, users can define reports directly from the transactional accounting
asset lifecycle Management
system—mixing and matching reusable, interchangeable report components to create • Improve visibility, tracking, and
new financial and management reports in seconds. To create reports based on consoli- control throughout the entire
dated results from disparate financial systems, Oracle Hyperion Financial Management asset lifecycle
includes a production report writer that produces boardroom-quality presentations in a • Streamline and automate asset
variety of formats (including HTML, PDF and Microsoft Office).
, operations as assets grow
credit-to-cash processing
Organizations can distribute these reports to authorized users as either live data or static • Reduce DSO and receivables

snapshots of data at specific points in time—without burdening users with the mechan- risk with configurable collec-
tions strategies
ics of the process. Users can view the reports as a spreadsheet or via a standard Web
browser—and they can dynamically change report selections and refresh results. All • Increase customer satisfaction
with alternative communication
reports support a variety of output options, including XBRL, text, PDF HTML, and
,
options
spreadsheet, and users can drill down to the underlying transactions.
procure-to-pay processing
• Reduce spending on goods
In addition, Oracle Business Intelligence Applications use prebuilt analytic reports and
and services and streamline
dashboards to provide summarized reporting on operational metrics (including key per- procurement processing
formance indicators on revenue, expenses, daily sales outstanding (DSO), profit margins, • Improve supplier/partner
and more). These reports provide up-to-the-minute information to help managers at every relationships and drive
level identify the right markets, the right customers, and the right product mix to sustain policy compliance
profitable growth. By storing summary data and transaction details in a single system— cash and treasury
accessible via real-time, role-based executive dashboards—managers can quickly identify Management
• Manage financial risk and
the root causes of problems and take appropriate action. maximize investment returns
All Oracle applications use a unified data model that provides a single definition of • Forecast liquidity and measure
customers, suppliers, employees, and products. This data model also delivers a single current and future cash flows
storage point for all information—including transactions, business intelligence, financial travel and expense
assets, and more. As part of Oracle E-Business Suite, Oracle Financials offers tight Management
• Expedite expense report
integration with other Oracle applications, including Oracle enterprise performance
processing
management applications; Oracle Fusion Governance, Risk, and Compliance; and
• Increase employee produc-
Oracle Business Intelligence Applications. The result: increased visibility into all facets tivity and satisfaction with
of the enterprise, and smarter decisions thanks to better information. self-service expense reporting
and credit card integration

9

An Integrated Family of Products
As a key component of Oracle E-Business Suite, Oracle Financials offers a future-proof
system that can help companies of all sizes, industries, and geographies meet evolving
business needs. Oracle Financials—together with Oracle enterprise performance
management applications and Oracle Fusion Governance, Risk, and Compliance—
provides a tightly integrated finance function that automates and streamlines financial
processes to improve visibility, enforce control, and increase operational efficiency.

Financial Business oracle products
process
Financial Control and Oracle General Ledger* Oracle Hyperion Financial Close
Reporting Oracle Advanced Global Intercompany Management
System* Oracle Hyperion Financial Management
Oracle Financial Accounting Hub Oracle Hyperion Disclosure Management
Governance and Oracle Fusion Governance, Risk, and Compliance Intelligence
Compliance Oracle Governance, Risk, and Compliance Manager
Oracle Fusion Governance, Risk, and Compliance Controls Suite
Planning, Budgeting, and Oracle Hyperion Planning
Forecasting Oracle Hyperion Public Sector Planning and Budgeting
Business Intelligence Oracle Financial Analytics
Procure-to-Pay Oracle Payables* Oracle iSupplier Portal
oracle Financials
Oracle Payments* Oracle iProcurement
Oracle Imaging and Process Management
Budgeting and planning
Credit-to-Cash Oracle Receivables* Oracle Advanced Collections
• Reduce cost of ownership by
Oracle Payments* Oracle Loans
deploying a single planning
Oracle Credit Management* Oracle iReceivables
solution that’s integrated with
Oracle Applications and Oracle Asset Lifecycle Oracle Assets*
enterprise performance man- Management Oracle Property Manager
agement applications (sharing Cash and Treasury Oracle Cash Management*
a common interface, reporting Management Oracle Payments*
tools, and a single point of
Oracle Treasury
maintenance)
Travel and Expense Oracle Internet Expenses
governance, risk, and Management
compliance
Note: Asterisk indicates financial products that are bundled with Oracle Financials.
• Facilitate financial control and

corporate governance with a
holistic approach to compliance
and risk management Lifetime Support and Applications Unlimited
performance Management
• Drive pervasive intelligence
With Oracle E-Business Suite, your technology investment is protected through a
across the enterprise by linking comprehensive, well-defined product roadmap, backed by Oracle’s Lifetime Support
strategic, financial, and opera- and Applications Unlimited programs, which include these benefits
tional management processes
• Customer-driven enhancements to product lines
• Ongoing upgrade innovations
• Lifetime support and no forced migrations
• Upgrade path to next-generation applications

10

contact Us
Please visit oracle.com/us/
products/applications/ebusiness/
financials, or call +1.800.633.0738
to speak to an Oracle representative.
oUtsiDe nortH aMerica
Visit oracle.com/corporate/contact/
global.html to find the phone
number for your local Oracle office.

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