CHART OF ACCOUNTSACCOUNT TYPES (Account dimension )ASSETLiabilityRevenueExpenseFlow - Store periodic and year-to-date valuesExample : change in accounts receivables , change in accounts payablesBalance - Store unsigned values that relate to a particular point in time Example: Tax Rate,salaryrate ,average sales avg profit ,ROABalance recurring--Store unsigned value that relate to a particular point in time and thatre-occur in future periodsCurrencyGroup label -Dynamic accounts
Account dimension Account type Time balance Intercomp accounts behavior behavior Group labelDynamic accounts Account Other accountCustom dimensions properties
Account• The account type determines the Chart of accounts of an application• Account type determines whether child values are added or subtracted from their value.• This determines enables you build financial calculations directly into the COA.Dynamic account:• Dynamic account type is needed for correct calculation of parent values for custom dimension, time periods & data views.• Results are calculated on the fly, data is not stored.• Periods to data views calculate correctly.Group Label:• You can use group account label account type to group related accounts that do not needed to be aggregated to the total.• Example: you can create a Top –level account named Balance sheet accounts that groups balance sheet accounts.• No data value is stored for members with group label account type; thus database size & calculation time are reduced.Calc attribute : Text that describes the calculation in the rule file that are done for this account (information displayed on the Data forms /data grids)Use line items : whether the account have line items .NumDecimal places: specifies the no of digits to the right side of decimal points to be displayed.
AccountICP properties:IS ICP : specify, whether the account is used for Intercompany transactions .PLUG Account : specify the account used for identify discrepancies in ICP-transaction.ICPTOP Member :Specify which top member in the hierarchy of the entity dimension is valid for the account.Time balance behavior :• Account type determines how balance accumulates over time.• Revenue ,expense & flow total across all periods• Remaining account types do not total across all periods.• Time balance behavior does not apply to the Dynamic, currency & group label accounts
CUSTOM-DIMENSION• Four Custom dimensions are available for analysis of accounting data• Create alias (assign description to the custom dim) for custom dimensions , you cannot change the custom names .• Alias displays in data forms/grids/journals/templates/HFR reports.• Custom dimensions work in conjunctions with the account dimension ,providing additional details for accounts .• This dimension enables to specify additional details for accounts such as Products, Departments , Flow, markets, Channels Of Distribution, Multi GAAP reporting(Local GAAP ,IFRS ,USGAAP) Forex Exposure reporting, Maturity Information reporting, and Weekly sales reporting. etc..
Custom -DimensionTo assign custom members to a accounts:1) For the account dimension ,create dimensions association between each custom top member property and the generic dimension that assigned the corresponding custom dimension member .2) For each account in the custom dimension ,select a top member from each custom dimension . The selected member and its descendants are the only custom members valid for data load and data entry for the account .if you do not assign a top member , no members of that dimension are valid for that account .For example :
Balance Sheet Movement & Custom dimension• FLOW/Roll FORWARDS : analysis that explains the movement of account balances between two reporting periods .• Custom dimension members to track movement detail for balance sheet accounts .• All the balance sheets accounts are mapped to the appropriate Top member of this hierarchy for tracking the flow. The flows are basically classified into Long term and Short term.• Typical balance sheet accounts are asset or liability accounts that show a running balance . You can use custom dimension members to track periodic movement for these accounts.• CTA (currency translation adjustment ) –applied for balance sheet movement .• Switch sign for flow : To change the flow behavior for custom members .(movement during the period are converted at the average rate for the period )• Switch type for flow : To reverse the sign for custom members .(movements which are in decreasing in balance )
CTA (Currency Translation Adjustment)• Currency Translation Adjustment – Account that stores the difference in account balance arising out of translation to currency other than the functional currency of the entity.• While the balance sheet movement captured in entity currency value will equal the closing balance, exchange rate differences will arise when these members are translated into another currency.• This difference will be broken down into difference arising on account of opening balance and difference arising on closing balance for every account mapped.• The sum of this CTA will equal the Currency translation adjustment that will be booked under equity.• CTA will be calculated value and not a “Plug.”• CTA will be calculated in HFM rules and custom dimensions (Roll forwards) will be used to provide greater visibility to currency translations. Roll forwards will be configured using custom dimensions to enable improved reporting of Balance Sheet movements.• Balance sheet accounts contributing to CTA will be provided with breakup of CTA arising on account of opening balance and period movement.• The CTA adjustment will be calculated for the Balance Sheet accounts (except equity accounts) based on the flow members .• CTA will not be computed for “Scenarios”.
Scenario-Dimension Enable audit frequency data scenario Data view Actual Default view: Forecast periodic / YTD Line item detail-LID Budget Missing data Process management• Actual Scenario contains data from general ledger, reflecting past and current business operations• Budget Scenario contains data that reflects the targeted business operations• Forecast Scenario contains data that corresponds to predictions for upcoming periods
Scenario-Dimension• Frequency :the frequency of a scenario specifies the time period level at which the data can be input .for example :months or quarters .• Frequency & view :financial management gives you the flexibility to input and view either periodic or year to data values .• Example 1 :you load actual data on monthly basis ,so the frequency for the actual scenario is set to monthly .• Example 2 : you forecast earnings on a quarterly basis , so you set the frequency of the forecast scenario to quarterly .data input is not permitted in months. Missing Data : missing data can be interpreted as either ZERO for the current period (periodic) or as zero for year to date (YTD).• BUDGET scenario uses ZERO view :-periodic• Forecast scenario uses ZERO view :- YTD• Specify settings for Adjustment data & Non Adjustment data . Data for February is missing , you can interpret as ZERO
VALUE VALUE -DIMENSION NODE SECURITY Contribution Total contribution Contribution adj ALLOW Proportion ADJUSTMENT FROM CHILDREN Elimination Parent total parent Parent adj Parent currency totalALL0WADJUSTMEN Parent currency Parent currency adj T Entity currency Total Entity currency Entity currency adj
Value -Dimension• For value dimension view always -YTD• Journals: During a financial period ,you may need to adjust data ,after it is entered or loaded in to base level entities.• Allow adj: The property enables posting of journal adjustment to the entity currency adjustment member for an entity .• Allow adj from children : the property enables postings of journal adjustments to the parent adjustment and contribution adjustment nodes of the value dimension.• Parent adjustments :apply for an selected parent with in entity (those entity has more than one parent entity)• Contribution adjustments: apply when the adjust value that contributed to the parent after % ownership has been applied .• Node security : the property enables you to specify whether users can access value dimension members that contain parent data.• Node security :specifies users security access above the parent currency total.• Default rate for FLOW account :identifies the account that stores exchange rates to translate values for all accounts with a flow behavior.• Default rate for Balance account :specifies the account that stores exchange rates to translate values for all accounts with a balance behavior.• Default currency :this property to specify the default currency for the application.• ICP elimination value are stored in VALUE dimension Posted at intercoDiff plug account .
Currency-Mechanism• Translation : convert one currency to another currency.• Triangulation :is a way to convert balances from one currency to another currency using a third ,common currency .• VAL-Method :Default translation method at entire current period balance at current exchange rate .• PVA-Method :a process of currency conversion that applies the periodic exchange rate values over time to derive converted results .• Translates ,only the current month change in the YTD value is translated at the current period Exchange rate .the translation result is added to the balance from the previous period ,translated at the exchange rate of the previous period .• Data grids –setup : ROW dimension (custom-1) :-Source currency Column dimension(custom-2):-Destination currency.
Entity Dimension ORG BY PERIOD Holding comp/subsidiary comp CONSOLIDATION Management/ Legal reporting ENTITY JOURNALS DIMENSION ICP Is ICP Allow adjustments SECURITY CLASSAllow adj from children SECURITY AS CURRENCY PARTNER Value dimension Custom 1& 2 dimension
Entity -Dimension• ICP-TOP : Specify which top member in the hierarchy of the entity dimension is valid for the account.• Holding company: Holding companies are used in statutory consolidations ,for which the ownership structure may or may not match the dimension hierarchy. The property identifies the owner of a member; the owner is not necessarily the parent of the member in the hierarchy .• Org by period :enable org by period if you need entity structures that vary from period to period .• Gives you the option to mark the entities as active or inactive for each period .• Make them validation(validate) for consolidation in an organization structure entity structure .• the default for active property specifies whether entities are in active by default or active for default (0=in active ,1-active )• Percent consolidation :the portion of child value ,that is consolidated into its parent.• Percent control : identifies the extant to which an entity is controlled with in the context of its group .• Metadata based on filtering :you use this property to enable or disable filtering of metadata based on user security access .• Validation account :this property identifies the validation account for your application used by process control (make it active for process control ) /data locking and submission phase.• Note : the balance in the validation account must be ZERO before the data can be promoted ,approved & locked.
ICP-Dimension ENTITY ACCOUNT VALUECUSTOM Dim ICP ICP-PROCESS (ICP ELIMINATION) Reports/monitori ng
ICP-DimensionICP properties:IS ICP : specify, whether the account is used for Intercompany transactions .PLUG Account : specify the account used for identify discrepancies in ICP-transaction.ICPTOP Member :Specify which top member in the hierarchy of the entity dimension is valid for the accountICP aggregation property :this property lets you specify a consolidation percentage for intercompany entities to their parent ICP top .Security as partner : specify more than one security class for an entity acts as an ICP partner .
Consolidation Consolidation accounts Org by periodEntity ICP Meta data based on filteringvalue Ownership/Minority Equity adjustments Equity pick up Consolidation Set up Data grids/validation Process control