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Oracle Cloud Financial Management Setup
Key components of financial management setup in Oracle OCI for a model retail company, along with their definitions and examples:
| Component | Definition | Example |
|---|---|---|
| Organizational structures | Define the company’s legal entities, business units, and departments. | A retail company might have a legal entity for each country in which it operates, and then business units for each product line or region. |
| Chart of accounts | Defines the accounts that will be used to track financial transactions. | A retail company might have accounts for cash, accounts receivable, inventory, cost of goods sold, and so on. |
| Tax setup | Defines the tax rates and regulations that will apply to financial transactions. | A retail company might have different tax rates for different countries or states. |
| Currency setup | Defines the currencies that will be used to track financial transactions. | A retail company might use the local currency in each country in which it operates. |
| Ledgers | Defines the accounting books that will be used to track financial transactions. | A retail company might have a general ledger, a subsidiary ledger for each business unit, and a subsidiary ledger for each currency. |
| Financial dimensions | Defines the dimensions that will be used to analyze financial data. | A retail company might use dimensions for product line, region, and customer type. |
| Security | Defines the users and roles that will have access to financial data. | A retail company might have different roles for employees who are responsible for entering transactions, generating reports, and managing the financial system. |
Here is an example of how the data model for a model retail company might be structured:
[Organizational Structures]
- Legal Entities
- [Country 1]
- [Country 2]
- [Country 3]
- Business Units
- [Product Line 1]
- [Product Line 2]
- [Product Line 3]
- Departments
- [Sales]
- [Marketing]
- [Finance]
[Chart of Accounts]
- Assets
- Cash
- Accounts Receivable
- Inventory
- Property and Equipment
- Liabilities
- Accounts Payable
- Notes Payable
- Accrued Expenses
- Long-Term Debt
- Equity
- Common Stock
- Retained Earnings
- Income Statement
- Revenue
- Cost of Goods Sold
- Gross Profit
- Operating Expenses
- Net Income
[Tax Setup]
- Tax Rates
- [Country 1]
- [Country 2]
- [Country 3]
- Tax Regulations
- [Sales Tax]
- [Income Tax]
- [Property Tax]
[Currency Setup]
- Currencies
- [USD]
- [EUR]
- [JPY]
[Ledgers]
- General Ledger
- Subsidiary Ledgers
- [Product Line 1]
- [Product Line 2]
- [Product Line 3]
- [Country 1]
- [Country 2]
- [Country 3]
[Financial Dimensions]
- Product Line
- Region
- Customer Type
[Security]
- Users
- [John Smith]
- [Jane Doe]
- Roles
- [Accountant]
- [Manager]
- [Executive]
for a model retail company, along with their definitions and examples:
| Component | Definition | Example |
|---|---|---|
| Organizational structures | Define the company’s legal entities, business units, and departments. | A retail company might have a legal entity for each country in which it operates, and then business units for each product line or region. |
| Chart of accounts | Defines the accounts that will be used to track financial transactions. | A retail company might have accounts for cash, accounts receivable, inventory, cost of goods sold, and so on. |
| Tax setup | Defines the tax rates and regulations that will apply to financial transactions. | A retail company might have different tax rates for different countries or states. |
| Currency setup | Defines the currencies that will be used to track financial transactions. | A retail company might use the local currency in each country in which it operates. |
| Ledgers | Defines the accounting books that will be used to track financial transactions. | A retail company might have a general ledger, a subsidiary ledger for each business unit, and a subsidiary ledger for each currency. |
| Financial dimensions | Defines the dimensions that will be used to analyze financial data. | A retail company might use dimensions for product line, region, and customer type. |
| Security | Defines the users and roles that will have access to financial data. | A retail company might have different roles for employees who are responsible for entering transactions, generating reports, and managing the financial system. |
Here is an example of how the data model for a model retail company might be structured:
[Organizational Structures]
- Legal Entities
- [Country 1]
- [Country 2]
- [Country 3]
- Business Units
- [Product Line 1]
- [Product Line 2]
- [Product Line 3]
- Departments
- [Sales]
- [Marketing]
- [Finance]
[Chart of Accounts]
- Assets
- Cash
- Accounts Receivable
- Inventory
- Property and Equipment
- Liabilities
- Accounts Payable
- Notes Payable
- Accrued Expenses
- Long-Term Debt
- Equity
- Common Stock
- Retained Earnings
- Income Statement
- Revenue
- Cost of Goods Sold
- Gross Profit
- Operating Expenses
- Net Income
[Tax Setup]
- Tax Rates
- [Country 1]
- [Country 2]
- [Country 3]
- Tax Regulations
- [Sales Tax]
- [Income Tax]
- [Property Tax]
[Currency Setup]
- Currencies
- [USD]
- [EUR]
- [JPY]
[Ledgers]
- General Ledger
- Subsidiary Ledgers
- [Product Line 1]
- [Product Line 2]
- [Product Line 3]
- [Country 1]
- [Country 2]
- [Country 3]
[Financial Dimensions]
- Product Line
- Region
- Customer Type
[Security]
- Users
- [John Smith]
- [Jane Doe]
- Roles
- [Accountant]
- [Manager]
- [Executive]
This is just an example, and the specific data model for a particular company will vary depending on the company's size, complexity, and needs.
Here are some key components of financial management setup in Oracle OCI for a model retail company, along with their definitions and examples:
1. **Cost Management and Governance Services**: These services help monitor cloud spending, increase accountability, and optimize cloud efficiency. They empower financial leaders to establish guardrails, ensuring cost and governance control without impeding growth ².
2. **OCI Dashboards Service**: This service enables you to derive insights, observe trends, and diagnose issues all from a single location in the Oracle Cloud Console. You can create dashboards for a quick yet comprehensive financial insights ¹.
3. **Retail Integration Bus (RIB)**: This is a fire-and-forget, asynchronous messaging backbone designed as a "Pub/Sub" JMS messaging architecture, with additional application functionality added such as intelligent transformation, routing and error handling ⁵.
4. **Cloud Price List**: This service offers a customer-friendly approach to saving money in the cloud. Innovative capabilities help eliminate needless overpayment and billing surprises so you can implement your cloud strategy while staying within budget ⁴.
Sources:
(1) Cost Management and Governance | Oracle. https://www.oracle.com/cloud/cost-management-and-governance/.
(2) Cloud Financial Management using OCI Dashboards - Oracle Blogs. https://blogs.oracle.com/cloud-infrastructure/post/cloud-financial-management-oci-dashboards.
(3) Retail Integration Cloud Service Components - Oracle Help Center. https://docs.oracle.com/en/industries/retail/retail-integration-cloud/22.1.401.0/oriog/retail-financial-integration-rfi.htm.
(4) Cloud Price List | Oracle. https://www.oracle.com/cloud/price-list/.
(5) Retail - Cloud Infrastructure | Oracle. https://www.oracle.com/retail/cloud/.
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