Overview of Oracle Financials

Below is a quick diagram of the Oracle Financials Cloud Modules and how they all interact with each other. Note that most of these modules are also found in Oracle E-Business Suite.

Below summarizes some of the important modules in Oracle Financials:

General Ledger (usually abbreviated to GL)

• The Financial application that records all the finalized transactions of an organization
• Deals with Ledgers, Periods, Currencies, Accounting Convention (sometimes called SubLedger Accounting Method) and finalized financial reporting

SubLedger Accounting (usually called SLA)

• A subset application of the General Ledger that holds all the finalized transactions of the other modules (somewhat like an interface).
• Transferring data from Subledgers to the General Ledger can be done on the Balances, Journal and Subledger Level (Lowest to Highest, respectively)
• More information on a separate article: Overview of Subledger Accounting in Oracle Fusion Applications

Payables (sometimes called Accounts Payables or AP)

• The Financial application that deals with Suppliers and Payments
• Also linked to the Procurement Module via Purchase Orders and Requisitions
• Invoices can be automatically created once a Supplier has delivered the ordered goods and the organization has confirmed it.
• The Payment process can then be initiated and electronically transmitted to the Bank for Processing.
• Run Create Accounting to Transfer to SubLedger Accounting (SLA)

Expenses

• A subset application of Payables that deals with employee expense reimbursement such as Travel, Food, Accomodation, etc.
• Expenses Can be entered via Spreadsheets, Mobile Application and usually goes through an approval process
• Once approved, the expense will become a Payment Request in Payables for Reimbursement to be paid to the Employee
• Follows the same process of "Create Accounting" through Payables

Assets (sometimes called Fixed Assets in EBS)

• The Financial application that deals with Company Assets and how their value fluctuates over time.
• Can be linked to Payables when an organization orders goods that are tagged as an Asset.
• Assets can then be posted into the "Asset Book" and starts the Asset life cycle (Appreciation, Depreciation, Transfer, Adjustments, Retire, etc.).
• Run Create Accounting to Transfer to SubLedger Accounting (SLA)

Receivables (sometimes called Accounts Receivables or AR)

• The Financial application that creates and sends Invoices to Customers (can be created Manually or interfaced via AutoInvoice from Projects, third-party applications, etc.)
• Receipts are then issued once customers have paid the Invoices
• Run Create Accounting to Transfer to SubLedger Accounting (SLA)

Advanced Collections

• A subset application of receivables that deals with customer payment collection.
• Collectors can review delinquent, non-paying Customers and issue a reminder in the form of Dunning.
• Customers can then issue a Promise to Pay letter or raise a Dispute on payments.
• Every action a collector and customer is recorded in the application and can automatically raise flags/reminders when thresholds are not met.

Cash Management (usually abbreviated to CM)

• Reconcile Bank Statements to and from the Bank and link up to transactions within the application such as receipts
• Includes Miscellaneous Transactions such as Bank Interest and charges
• Cash Forecast and Positions
• Transactions such as External Transactions (Bank Charges or Interest Income) and Bank Account Transfers initiated from the Cash Management application goes into SubLedger Accounting

Tax (called E-Business Tax in EBS)

• Module responsible for the Calculation for Tax for both AR and AP
• Can be automatically linked to third-party tax providers such as Vertex
• Defines the Tax Regimes, Rates and Tax Recovery Rates, depending on the geographical area

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