There are some exciting new features and enhancements introduced in release 24C for General Ledger which Oracle clients can leverage to enhance their return on Oracle Cloud Investment. This blog will cover these amazing updates related to account hierarchy sorting and budgetary control introduced in this release.
- Account Hierarchy User-Defined Sort Order Using File-Based Data Import
Efficient financial reporting is critical for businesses to meet regulatory requirements, adhere to industry standards, and support strategic decision-making. The introduction of user-defined sort order in account hierarchies using file-based data import is a significant enhancement that simplifies and streamlines this process. This feature ensures that the order in which the chart of account hierarchy members is defined in import templates is retained, offering greater flexibility and accuracy in financial reporting.
Previously, when chart of account hierarchy members were imported using the Import Segment Values and Hierarchies FBDI (File-Based Data Import) or Rapid Implementation Spreadsheet, the child members within a parent member were sorted alphanumerically. This often-required businesses to manipulate account names to achieve a desired order, complicating the setup and maintenance of financial data structures.
With the new update, the children within a parent member are retained in the original order as defined in the import template. This means businesses can now directly display child values in their preferred sequence, without additional adjustments.
Key Benefits
- Customization and Flexibility: Organisations can now organize financial data to meet specific reporting needs without the constraints of alphanumeric sorting. This is particularly useful when adhering to local GAAP (Generally Accepted Accounting Principles) or other regulatory frameworks that dictate specific naming conventions and order.
- Simplified Data Management: Maintaining the original import order reduces the need for workarounds and simplifies the data import process. This makes it easier to set up and manage account hierarchies, saving time and reducing errors.
- Enhanced Reporting Accuracy: By retaining the user-defined order, financial reports generated in tools like Smart View and Financial Reporting Studio will reflect the true structure of the financial data. This ensures that stakeholders receive accurate and meaningful reports aligned with the organization’s financial strategies.
- Budgetary Control at the Project Task or Lowest Resource
Effective budget management is pivotal for the success of any project. To address the complexities of financial oversight, the latest enhancement in budgetary control allows businesses to control spending at the project task level or the lowest resource level. This provides a granular approach to managing costs, ensuring projects stay within budget and are delivered successfully.
The new feature enables businesses to control spending based on the budget allocated to specific project tasks. This can be done at the top task or the lowest task within the work breakdown structure (WBS). Additionally, it allows for control over spending by the amounts planned for the lowest resource within the project budget. This flexibility helps manage costs more effectively, reducing the risk of overspending.
- Detailed Spending Control
- Task-Level Control
Budgetary control at the task level allows for detailed spending management. For example, each phase of a project can have its own distinct budget, represented by a top task. This enables businesses to:
- Control the budget for each phase of a project.
- Optionally add budgetary controls for each type of cost, such as labor or supplier costs.
This approach ensures that each phase is adequately funded and that costs are monitored closely.
- Resource-Level Control
The resource breakdown structure (RBS) provides further granularity. For instance, within different departments, the top resource might represent the department, while the lowest resource represents the type of cost. This allows for:
- Controlling labor or supply costs within specific departments.
Managing costs at a more detailed level, such as individual resources or specific cost types.
Business Benefits
- Improved Spending Control: By enabling budgetary control at both the task and resource levels, businesses can manage their budgets more precisely. This reduces the risk of overspending and ensures that funds are allocated appropriately throughout the project lifecycle.
- Enhanced Project Delivery: Detailed budgetary control helps ensure that projects are delivered within budget. By closely monitoring spending at each task and resource level, potential budget issues can be identified and addressed promptly.
- Better Decision-Making: The refined user interface for defining spending controls makes it easier for project managers to set and monitor budgets. This clarity and ease of use promote better decision-making, as managers can quickly understand and adjust their spending controls as needed.
- Increased Financial Oversight: Improved monitoring of costs at a granular level brings attention to potential changes in the organisation’s budget. This proactive approach helps in maintaining financial health and supports strategic financial planning.
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