Fusion Applications White Paper

White Paper on Financials Accounting

Hub to Account Transactions from
Custom Application in Fusion
Applications
Author: Sanjay Prasad
Reviewed By:
Creation Date: 08-May-2018
Last Updated:
Version: 1.0
Status: FINAL

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Table of Contents
INTRODUCTION.................................................................................................................................3
A) OBJECTIVE...................................................................................................................................................................3

B) SCOPE/OUT OF SCOPE................................................................................................................................................3

BUSINESS CASE............................................................................................................................ 4
D) METHODOLOGY..........................................................................................................................................................4

E) BUSINESS EXAMPLE....................................................................................................................................................4

SET UP STEPS.............................................................................................................................. 7
F) STEP BY STEP GUIDE TO FAH CONFIGURATION..........................................................................................................7

Define New Application.........................................................................................................................................7

Define Mapping Set...............................................................................................................................................9
Define Account rules............................................................................................................................................13
Define Journal Line Rule.......................................................................................................................................15
Define Journal Rule Sets.......................................................................................................................................16
Edit Accounting Method......................................................................................................................................17
G) TRANSACTIONS PROCESSING................................................................................................18
DATA PREPARATION.....................................................................................................................................................18

Download Data Template....................................................................................................................................18

Data Preparation.................................................................................................................................................19
Import Data File to FAH.......................................................................................................................................21
Review Journals Created......................................................................................................................................24

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Introduction
A) Objective
In Fusion Applications, by configuring Financial Accounting Hub (FAH), we can account transactions from
third party system. This white paper is to elaborate different steps to be followed in case of requirement
of “How to account transactions of Custom Application by using configuration available in FAH”.

B) Scope/Out of Scope
This white paper will cover followings:

a) Using rapid installation to configure Custom Application Integration to Fusion Application

b) Configure Financial Accounting hub to account transaction from Custom Application

c) Upload csv file containing transactions from Custom Application to Fusion Application

d) Account the uploaded transaction from custom application and Post to GL

This paper will not cover:

a) Ledger setup in Fusion Applications

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Business Case
D) Methodology
We will take few sample transactional data. Define expected accounting entries to be generated as per
business requirement. Configure fusion FAH according to the accounting requirement. Upload the
sample transactional data to FAH. Perform accounting in FAH and compare the accounting by FAH with
expected accounting entries.

E) Business Example
Customer uses fusion financials to perform her standard financial transaction and its accounting.
Additionally Customer has custom application to handle her specific business transactions. To have
central repository of accountings customer need to pass accountings of transaction from custom
application, to Fusion General Ledger.

Therefore, in summary, management’s need is to:

a) Continue business specific transaction in custom application

b) Custom application transaction to be interfaced to Fusion Applications to account by using

Financial Accounting Hub.

To map above requirement, we will take following prototype transactional example.

Customer creates two invoices in custom application. From Custom Application, transactional details
would be interfaced to FAH. By using FAH configuration for the custom application, FAH would create
compatible (compatible to Fusion GL) accounting of the interfaced transactions and post to GL.

We will take following example of transactions to explain the configuration:

 In custom application there are two standard invoices and details of those are as below

o First invoice is for below items purchased from a domestic supplier for

 Asset item of amount 1500 USD

 Inventory item of amount 1000 USD

o Second invoice is for below items purchased from foreign supplier

 Asset item of amount 4000 USD

 Inventory item of amount 2000 USD

Requirement is, create accounting of above invoices. The generated accountings should be compatible
to Fusion GL.

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Account Structure Mapping

To understand compatibility of accounting to Fusion GL in the example explained, let’s review Account
Structure of Fusion GL, (In other words Chart of account (COA)) has following 5 segments:

Segment1: Company

Segment2: Department

Segment3: Account

Segment4: Sub Account

Segment5: Product

In our example, derivation of value for Segment3 will depend on transactional data in custom
application and for all other segments we will use following default values:

Segment1: 01

Segment2: 000

Segment4: 0000

Segment5: 000

For Segment3, mapping from custom application to fusion GL is as follows:

 Mapping for “Account” (Segment3):

Custom Application Code From Custom Application Segment3

to FAH

Inventory INV 1410

Asset ASSET 1570

Domestic Supplier DOMESTIC 2210

Foreign Supplier IMPORTED 2222

Based on above mapping, Expected Accounting in Fusion GL is as follows :

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Invoice#1

01-000-1410-0000-000 Dr 1000 USD-Charge Line

01-000-1570-0000-000 Dr 1500 USD-Charge Line

01-000-2210-0000-000 Cr 2500 USD-Liability Line

Invoice#2

01-000-1410-0000-000 Dr 2000 USD-Charge Line

01-000-1570-0000-000 Dr 4000 USD-Charge Line

01-000-2222-0000-000 Cr 6000 USD-Liability Line

We will follow below steps to map above accounting requirement mentioned:

a) FAH Configuration - Configure FAH to generate expected accountings for transaction from
custom application.

b) Import data from custom application

c) Account the transactions using FAH configuration and review the same.

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Set Up Steps
F) Step By Step Guide to FAH Configuration
Register/define respective custom application in Fusion FAH

Define New Application

Below are two different ways to define application in Fusion FAH:
a) Manually
b) Rapid implementation
We will use Rapid implementation to define application.

Log in as application implementation consultant.

Query and open for project FAH
Navigate: Define Accounting Entry Configuration for Rapid Implementation>Create Subledger
Application Setups in Spreadsheet

Click on Download Setup Template.

This will download excel template to local drive. Open the file and enter application data as per
instruction provided in template.

After that click on Upload Setup File and upload the zip file stored in local drive.

This will create application and related data model as per setup data entered in excel template.

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To query cutom application created by upload setup file:
Navigate: Define Accounting Entry Configuration for Rapid Implementation>Manage Subledger
Application

We are going to use XXINV event type in test case used in this paper.

To verify source data created for application:

Navigate: Define Accounting Entry Configuration for Rapid Implementation>Manage Source

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Relevant source data for our test case is as below

Source Header/Line Value Additional

Information

TRANSACTION_TYPE H XX_INV

LEDGER_NAME H SPL

TRANSACTION_DATE H Transaction Date

TRANSACTION_NUMBER H Transaction Number

TXN_TYPE H INV

TXN_SUBTYPE_1 H STD

H_ID_1 H DOMESTIC/IMPORTED Type of Supplier

TRANSACTION_NUMBER L Transaction Number

DEFAULT_AMOUNT L Line Amount

DEFAULT_CURRENCY L Currency Code defined in Fusion

GL

LINE_NUM L Line Number

DIST_TYPE L ITEM Type of Transaction

line

LN_ID_1 L ASSET/INV Type of Item in

Transaction line

After defining custom application and its source data, next step is to define accounting configuration.

Define Mapping Set

Referring to business example explained, as per different values in source system such as Item type or
Supplier type, different respective accounts need to be derived. This can be achieved by using Mapping
set feature.

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Navigation: Define Accounting Entry Configuration for Rapid Implementation> Define Accounting Rules
for Rapid Implementaion>Manage Mapping Sets

Above set up maps Type of item purchased (LN_ID_1) to respective natural accounts in Fusion GL.

Similar mapping set need to be defined to map Type of supplier.

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Above set up maps Type of supplier (H_ID_1) to respective natural accounts in Fusion GL.

This completes mapping set configuration.

We defined below two mapping set

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Next step to define Account rule.

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Define Account rules
Navigation: Define Accounting Entry Configuration for Rapid Implementation> Define Accounting Rules
for Rapid Implementaion>Manage Accounting Rules

Above accounting rule is to derive natural account for Charge line based on Mapping set
XX_CHARGE_NATURAL

Above accounting rule is to derive natural account for Charge line based on Mapping set
XX_LIAB_NATURAL

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As per business requirement, Account code to be derived as constant value for all segments except
Natural account (Segment3) and Natural account (Segment3) is to be derived based on data from suorce
custom application. To derive constant values for all segments except Natural account, define another
Account rule as below:

This completes configuration for Account rules. We defined three account rules shown as below:

Next step is to define Jornal line rules.

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Define Journal Line Rule
As per business requirement, accounting of transaction from custom application contains two different
of journal line, Charge and Liability.

Navigation: Define Accounting Entry Configuration for Rapid Implementation> Define Accounting Rules
for Rapid Implementaion>Manage Journal Line Rules

Note: Condition is "TXN_TYPE" = INV 'And' "TXN_SUBTYPE_1" = STD

Both variables TXN_TYPE and TXN_SUBTYPE_1 are header source data
Side: Debit as Charge account is generally debited

Note: Condition is "TXN_TYPE" = INV 'And' "TXN_SUBTYPE_1" = STD

Both variables TXN_TYPE and TXN_SUBTYPE_1 are header source data
Side: Credit as Liability account is generally credited

This completes Journal line rule configuration.

We defined two journal lines

Next step is to define Jornal Line Rule Sets

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Define Journal Rule Sets
Navigation: Define Accounting Entry Configuration for Rapid Implementation> Define Accounting Rules
for Rapid Implementaion>Manage Subledger Journal Entry Rule Set

One by one add both Journal Line Rules defined in previous step to Journal Line Rule Set.
For Journal Line Rule XX_LIAB, account would be derived by overlaying natural account from rule
XX_LIAB_AR on account derived by account rule XX_CONSTANT
For Journal Line Rule XX_CHARGE, account would be derived by overlaying natural account from rule
XX_CHARGE_AR on account derived by account rule XX_CONSTANT

This compeltes configuration of Journal Entry Rule Set.

Next step is to attach the above journal entry rule set to Accounting Method.

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Edit Accounting Method
Navigation: Define Accounting Entry Configuration for Rapid Implementation> Define Accounting Rules
for Rapid Implementaion>Manage Accounting Methods
Query the Accounting method attached with Ledger.

Note: Status is Incomplete for Rule set XX_JER assigned to accounting method
Activate the edited Accounting method by navigating to Action drop down

This complets Configuration in FAH.

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G) Transactions Processing
Data Preparation
Transaction data from custom application need to be uploaded to FAH. Data need to be prepared in
specific template, generated by FAH. FAH provides the template based on configuration done for the
custom application.

Download Data Template

Log in as application implementation consultant.
Query and open for project FAH
Navigate: Define Accounting Entry Configuration for Rapid Implementation>Manage Subledger
Application

Click on “Download Template”.

This will download data template a zip file to local drive.
Unzip the file, it contains below threes files:
a) Metadata file in txt format
b) Header data file in csv format
c) Line data file in csv format

Next step data preparation.

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Data Preparation
Open header file in csv format and enter data.
Enter header data for first invoice from Imported supplier

Save the file.

Open line file in csv format and enter data.

Enter line data for first invoice from Imported supplier.

Save the file

Zip the data files and metadata txt file

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This completes data file preparation. Next step, data file XlaTransactionXXAPPLBUS-4.zip to be imported
to FAH.

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Import Data File to FAH
Log in with user, which has “FAH Transaction Import” role for the respective Ledger.

Import data file “XlaTransactionXXAPPLBUS-4.zip”

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Click on plus symbol to upload data file

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Upload data to fin/fusionAccountingHub/Import
Once data file is uploaded, run “Import Accounting Transactions” process

This completes data import to FAH.

Next step, review journals created.

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Review Journals Created
To review the journals created in GL, navigate to Navigator>General Accounting>Journals

Set Respective Data Access Set and navigate to “Review Subledger Journals”

Query for journals by custom application

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Review journal entries created

Verify journal entries created isa same as described in Business Example Section.

Similary we can import data file for Invoice from Domestic supplier and review its journal.

Header data for Domestic supplier

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Line data for Domestic supplier

Journals created for Doemstic purchase

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