Reconciling Accounts with Oracle Account Reconciliation Cloud

117 Pages·2017·2.26 MB·English

®
Oracle Cloud
Reconciling Accounts with Oracle Account
Reconciliation Cloud
E94371-08
Oracle Cloud Reconciling Accounts with Oracle Account Reconciliation Cloud,
E94371-08
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Contents
Documentation Accessibility
Documentation Feedback
1 Learning About Account Reconciliation Cloud
Which Tasks Do I Do First in Reconciliation Compliance? 1-4
Which Tasks Do I Do First in Transaction Matching? 1-5
2 Account Reconciliation Cloud Home
Worklist 2-2
Reconciliations 2-4
Matching 2-7
Dashboards 2-7
Reports 2-9
Application 2-9
Reconciliation Activity 2-11
Overview of Reconciliation Compliance Configuration 2-12
Periods 2-17
Services 2-19
Tools 2-19
Appearance 2-20
Announcements 2-20
Service Activity Report 2-21
Access Control 2-22
The Academy 2-23
Settings and Actions Menu 2-23
Welcome Panel 2-25
Navigator 2-25
Managing Preferences 2-26
iii
Part I
Reconciling Accounts in Reconciliation Compliance
3 Learning About the Reconciliation Process
Sample Task Flow Scenarios for Administrators and Power Users 3-2
Performing Variance Analysis 3-4
Process Overview for Reconciliation Compliance 3-5
User Tasks in Reconciliation Compliance 3-6
4 Accessing Reconciliations
Accessing Reconciliations from Dashboards Card 4-1
Accessing from Reconciliations Card 4-3
Working With Views 4-4
Creating Filters and Saving Lists 4-7
5 Preparing Reconciliations
Working with Transactions 5-11
Adding Transactions 5-13
Copying Transactions from Prior Reconciliation 5-14
Adding Transactions Manually 5-14
Understanding Data Loads in Account Reconciliation Cloud 5-17
Importing Pre-mapped Data 5-19
Amortizing or Accreting Transactions 5-24
Creating Amortizing or Accreting Transactions Manually 5-24
Copying Amortized or Accreting Transactions from Prior Reconciliations 5-25
Importing Amortizing or Accreting Transactions 5-26
Editing, Copying, and Deleting Transactions 5-26
Requesting Reassignments 5-26
Claiming and Releasing Team Reconciliations 5-29
Performing Summary Reconciliations 5-30
6 Reviewing Reconciliations
Submitting, Approving, and Rejecting Reconciliations 6-2
Part II
Reconciling Accounts in Transaction Matching
iv
7 Learning About Transaction Matching
8 Learn About Reconciling Accounts Using Transaction Matching
9 Confirming Suggested Matches
10 Creating Manual Matches

Selecting All Transactions 10-5
Exporting Transactions to .CSV Format 10-6
Deleting Transactions 10-8
Creating Filters and Saving Lists 10-9
11 Creating the Reconciliation Balancing Report

12 Creating and Running Jobs

v
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vi
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vii
1
Learning About Account Reconciliation
Cloud
Oracle Account Reconciliation Cloud provides robust functionality to help manage
account reconciliation period end processes as well as large scale transaction
matching capabilities.
Learning About Reconciliation Compliance
Reconciliations ensure that a company's financial accounts are validated to check that
the balance in the account is correct. Because account balances are valid at a point in
time, and business conditions change, it is critical that reconciliations occur. In
addition, companies face stiff penalties for failing to reconcile. The types of validations
that are often done include:
• Cash: Compare General Ledger (GL)/Bank balance
• AP: Compare GL to Subledger
• AR: Compare GL to Subledger and analyze aging of receivables
• Fixed Assets: Compare GL to Subledger and perform a rollforward
• Prepaids / Accruals / Provisions / Reserves: Document net composition and
justify quality
Reconciliation Compliance helps manage account reconciliation processes, including
balance sheet reconciliations, consolidation system reconciliations, and other
reconciliation processes in effect.
You can:
• Manage preparation and review responsibility assignments
• Configure reconciliation formats tailored to each account type
• Notify users of due dates for their assigned reconciliations
• Control preparation and review workflow
• Provide visibility into the reconciliation status and possible risk conditions
Reconciliations can be performed at whatever level makes sense for the business. For
example, you could perform some reconciliation by business unit or company code,
while performing other reconciliations at the Department level. An administrator can
use mapping rules to assign the account balances to the reconciliations, and when
balances are imported, ensure they appear in the correct reconciliation based on these
rules.
The administrator sets up the reconciliation lists that contain the balances to be
reconciled, as well as account descriptions, instructions, due dates, and completed
dates. Email notifications are sent reminding other users that due dates are
approaching, or that reconciliations can be acted upon.
1-1
Chapter 1
Key Concepts in Reconciliation Compliance
Concept Description
Account The process of analyzing account balances and providing a
Reconciliation justification for the balances. Identify differences and make
corrections.
Aging Buckets Time periods that you define to age your reconciliation transactions in
the Aging Analysis Dashboard. For example, you can define an aging
bucket that includes reconciliation transactions from 1 to 30 days old.
Aging buckets are defined in an aging profile.
Aging Profile A collection of aging buckets.
Attributes A parameter, or option, that controls how the function activity
operates or defines characteristics of the function activity.
Frequency Determines how often reconciliations are prepared and renewed. You
define frequencies in system settings and associate them with
profiles and periods.
Periods Unit of time for which an Account Reconciliation is completed, for
example, January 2016, February 2016.
Profiles The precursor to reconciliations. Profiles contain the configuration
settings that determine how and when reconciliations occur. Profiles
are copied to the period, causing a reconciliation to be created that
contains a snapshot of the profile at that time.
Reconciliations An Account Reconciliation for a specific Period. Reconciliations
consist of account balances (obtained from the Source System for
the Period) and account properties (derived from the Account Profile
and Format and subject to change independently of the profile).
Source System One data repository within a system.
Learning About Transaction Matching
Transaction Matching is a perfect complement to the Reconciliation Compliance
feature set. With Transaction Matching, companies can automate preparation of high
volume, labor intensive reconciliations and seamlessly integrate those results into the
tracking features within Reconciliation Compliance.
This powerful new module will save companies additional time on performance of
reconciliations, while improving quality and reducing risk.
Transaction Matching functionality is provided to licensed users of Transaction
Matching for Account Reconciliation Cloud, an optional licensed feature for Account
Reconciliation Cloud.
At a high level, an Administrator performs these set up tasks:
• Create calendars
• Create reconciliation types
• Define data sources
• Define the matching rules
• Create reconciliations
1-2
Chapter 1
Key Concepts in Transaction Matching
Concept Description
Match Type (created by Reconciliation Types determine how the transaction
Administrators) matching process will work for the accounts using that
Reconciliation Type. They determine the structure of
the data to be matched, as well as the rules used for
matching.
Companies can have many different Reconciliation
Types. For example, Intercompany Accounts, Bank
Accounts, Accounts Receivable, Accounts Payable,
and various Clearing Accounts can benefit from
transaction matching. Since the data structure and
matching rules are likely to be different for each of
these types of accounts, companies would create a
Reconciliation Type for each.
Data Sources Depending on your company's needs, you may want
to define one or more data sources. For example you
might want to:
• Compare transactions between two data sources
to see which transactions are outstanding
• Netting transactions within a single data source
to determine the “net balance” of the account
For each data source, define the attributes (columns)
existing in the data source, as well as any calculated
attributes used for data enrichment or normalization
purposes.
Timing and Frequency Transaction Matching supports a variety of workflow
needs:
–Matching and balancing daily
–Matching daily and balancing monthly
–Matching and balancing monthly
Matching Rules Match rules determine how matches are made. Rules
can be configured for tolerance ranges on dates and
amounts, and adjustments can be automatic when
variances exist.
The common matching rule types are supported:
• one to one
• one to many
• many to one
• many to many
User Workflow Process Using Transaction Matching
Once the administrator creates the reconciliations, the user process involves these
tasks:
• Load data
• Run the auto match process
• Confirm suggested matches
• Create manual matches
• Run balancing reports
1-3