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    Kishore Kunal
    Checklist for Financial Cloud for acquisitionAnswered
    Topic posted October 16, 2019 by Kishore Kunal, tagged Setup / Administration 
    34 Views, 3 Comments
    Title:
    Checklist for Financial Cloud for acquisition
    Summary:
    Checklist for Financial Cloud for acquisition
    Content:

    hi All,

    I am looking for a checklist for financial cloud in case an existing company is acquired by another company. Existing company has been live on Financial Cloud and now, it has been acquired. So, we need to plan the effort required for implementing the acquisition in the system. Any help/pointer would be greatly appreciated.

     

    Thanks & Regards,

    Kishore Kunal

    Version:
    R13

    Best Comment

    Helle Hennings

    Here's a suggested check list if say you went with Option 2 above:

    Scenario:  Add a new LE and a BU to an existing primary ledger with multiple LE’s and BU’s where there is 1:1 of LE to BU and one primary balancing segment value assigned to each LE.

    1.Define a new BSV

    2.    Define a new LE

    3.    Assign LE to primary ledger

    4.    Assign BSV to LE

    5.    Copy configuration in FSM based on an existing BU (applies to AR, AP, Expenses, Payments, Tax and financials common such as business function, set assignment, service provider relationship). This step also creates the new BU.

    6.      Edit configuration, e.g. change BSV in AP/PO common configuration

    7.      Update business unit business functions for new BU, if applicable

    8.      Update business unit set assignment for new BU, if applicable.

    9.      Update copied configuration for new BU, if applicable.

    10.     Define additional setup for new BU, if applicable, such as distribution sets, AR transaction type (Note: Not all configuration are copied when copying a Business Unit, e.g. AP Distribution sets.  You can also define a BU and configure subledgers manually).

    11. Add new BSV to Account hierarchy using FSM Manage Account Hierarchy (or FBDI Segment Values & Hierarchies).

    12.     Define new GL Data Access Set for new BSV, if applicable.

    13.      Assign new BU access to users.

    14.     Update approval rules based on BU if applicable.

    15.     Update Fusion Assets configuration if applicable (two corporate asset books or multiple asset categories for multiple BSVs
               in on asset book)

    16.     Add supplier site assignments to new BU

    17.     Define new bank account for new LE, if applicable.

    18.     Define new cross-validations rule, if applicable for new BSV.

    19.     Update Allocation rules, if applicable.

    Note: The summary of the 19 steps should be viewed as jump start and not as comprehensive list of everything to consider when onboarding a new entity

    Comment

     

    • Helle Hennings

      HI Kishore

      The approach depends on a number of factors - to name a few considerations:

      Consider if:

      •The onboarding entity is subject to same chart of accounts, currency, calendar, and period close process as parent entity.
      •The onboarding domestic entity is a legal employer (separate payroll reference).
      •The onboarding domestic entity has a different VAT / Tax registration.
       

      You could consider onboarding Oracle ERP Cloud Enterprise Structure options such as:

      1.Add a new Ledger,  a new Legal Entity (LE), and a new Business Unit (BU) where there is 1:1 of Ledger to LE, LE to BU, and BU to Ledger and a new primary balancing segment value assigned to new LE.
      2.Add a new Legal Entity (LE) and a new Business Unit (BU) and add to an existing primary ledger with multiple LE’s and BU’s where there is 1:1 of LE to BU and a new primary balancing segment value assigned to new LE.
      3.Add a new Legal Entity (LE) and use existing Business Unit (BU) and existing primary ledger with multiple LE’s and BU’s ensuring a different primary balancing segment value is assigned to each LE.

      General recommendations:

      Ledgers and Legal Entities:

      Less is more. Minimises setup, duplication and maintenance cost, enables faster payment processing, faster period close, and reporting by Legal Entity (BSV).

      Business Units: Use existing business unit is the general recommendation but you may find that you need to create a separate business unit when it makes sense such as say arms length acquisition with total different operations. The 1:1 of LE to BU enables Legal Entity defaulting onto transactions within a new BU whilst still enabling payments for invoices across BUs when within same ledger.

      COA, Currency, Calendar, Accounting Method:  Aquisition could share the same chart of accounts, calendar, and currency, although separate BSV value for LE, and separate Cost Center values too.

      Shared Services (SSC):Aim of SSC is to standardize business processes; improve the quality of management and financial Reporting; and to reduce cost for enterprise as a whole. SSC can process data for multiple BUs. SSC can process payments for invoices across BUs as long as those BUs belong within the same Ledger.

      Security and Data Access: Use of separate BSV and BU enables reporting and inquiry to be secured in terms of restricting user access  and visibility. Ensuring financial statement reports are secured by data access sets (e.g. securing by Ledger/BSV) and operation reports secured by BU addresses security and data access needs.

      For more information refer to the following white papers:

      •Oracle ERP Cloud Implementation Leading Practices white paper here
      •Relevant chapters on key implementation considerations and data migration, integration and extensibility
      •Cloud ERP Enterprise Structures White Paper (Doc ID 2415848.1)
      • Relevant chapters on Enterprise Structures and Reference Data Sharing
      •Multi pillar Oracle Cloud Implementation Best Practices white paper here
      •Outlines considerations whether implementing Finance and HCM concurrently or in separate phases
      •Oracle Financials Cloud Shared Service Centers white paper here
      •Explains shared service center modeling and recommended practice
       
      Regards
       
      Helle
      • Kishore Kunal

        Thanks a lot Helle for the detailed steps. We went with option 1 with the creation of a new LE, ledger and BU but retained the same COA structure .

         

        Regards,

        Kishore Kunal

    • Helle Hennings

      Here's a suggested check list if say you went with Option 2 above:

      Scenario:  Add a new LE and a BU to an existing primary ledger with multiple LE’s and BU’s where there is 1:1 of LE to BU and one primary balancing segment value assigned to each LE.

      1.Define a new BSV

      2.    Define a new LE

      3.    Assign LE to primary ledger

      4.    Assign BSV to LE

      5.    Copy configuration in FSM based on an existing BU (applies to AR, AP, Expenses, Payments, Tax and financials common such as business function, set assignment, service provider relationship). This step also creates the new BU.

      6.      Edit configuration, e.g. change BSV in AP/PO common configuration

      7.      Update business unit business functions for new BU, if applicable

      8.      Update business unit set assignment for new BU, if applicable.

      9.      Update copied configuration for new BU, if applicable.

      10.     Define additional setup for new BU, if applicable, such as distribution sets, AR transaction type (Note: Not all configuration are copied when copying a Business Unit, e.g. AP Distribution sets.  You can also define a BU and configure subledgers manually).

      11. Add new BSV to Account hierarchy using FSM Manage Account Hierarchy (or FBDI Segment Values & Hierarchies).

      12.     Define new GL Data Access Set for new BSV, if applicable.

      13.      Assign new BU access to users.

      14.     Update approval rules based on BU if applicable.

      15.     Update Fusion Assets configuration if applicable (two corporate asset books or multiple asset categories for multiple BSVs
                 in on asset book)

      16.     Add supplier site assignments to new BU

      17.     Define new bank account for new LE, if applicable.

      18.     Define new cross-validations rule, if applicable for new BSV.

      19.     Update Allocation rules, if applicable.

      Note: The summary of the 19 steps should be viewed as jump start and not as comprehensive list of everything to consider when onboarding a new entity