Oracle Financial Analytics

Finance

3 March 2024

Oracle Financial Analytics: Unveiling General Ledger KPIs and Dashboards for Actionable Insights from a Functional Perspective — Part 1

Introduction

In today’s data-driven landscape, leveraging financial analytics stands as a cornerstone for informed decision-making and strategic planning. As part of our initiative, we’ve implemented robust financial analytics on Google Cloud Platform (GCP / Looker ), harnessing data from Oracle EBS (E-Business Suite) to empower businesses with actionable insights.

Understanding Financial Analytics

Financial analytics involves the systematic analysis of financial data to extract valuable insights, facilitate budgeting, facilitate forecasting, and drive informed decisions. This encompasses various methodologies, including descriptive, diagnostic, predictive, and prescriptive analytics, to understand past performance, uncover trends, mitigate risks, and optimize future strategies. In nutshell financial analytics is one stop shop to analyze the overall financial health of an organization.

Deep Dive into General Ledger Journals and Balances KPIs and Dashboards

**General Ledger Module and its Topics**

This articles covers 2 topics under General Ledger Module

GL Journals ( Dashboards & KPIs )
GL Balances ( Dashboards & KPIs )

1.1 GL Journals Dashboards

1.1.1 Journal Details Dashboard:

The Integrated GL Journals Details Dashboard stands out as a powerful tool offering a nuanced exploration of journal entries, uniquely providing insights at the levels of suppliers, customers, and invoices. This dashboard goes beyond traditional GL views, integrating seamlessly with Accounts Payable (AP) and Accounts Receivable (AR) to enhance visibility and facilitate robust account reconciliation between the General Ledger (GL) and subledger modules.

1.1.2 Purchase Journal Dashboard

The Purchase Journal Dashboard is a dedicated platform providing detailed insights into purchasing activities, with a primary focus on suppliers and associated invoices. This dashboard enables users to comprehensively explore the purchase journal, gaining valuable insights into supplier relationships and transaction details.

1.1.3 Cash Receipts Journal Dashboard

The Cash Receipt Journal Dashboard offers detailed insights into cash receipts from customers, providing valuable information about receipts made against accounts receivable (AR) invoices. This dashboard serves as a powerful tool for financial analysis and decision-making, allowing stakeholders to monitor and manage cash inflows effectively.

1.1.4 Sales Journal Dashboard

The Sales Journal Dashboard is a specialized tool tailored for in-depth insights into sales transactions, with a customer-centric focus. This dashboard provides a comprehensive analysis of the sales journal, emphasizing customer details and associated invoices.

1.2 GL Journals KPIs –

Entered Amount Credit

Entered amount credit helps in tracking the journal entry line credit amount in the transaction or entered currency. This metric can be grouped by period, ledger, account, department, segments, supplier, customer, invoice etc.

Entered Amount Debit

Entered amount debit helps in tracking the journal entry line debit amount in the transaction or entered currency. This metric can be grouped by period, ledger, account, department, segments, supplier, customer, invoice etc.

Net Entered Amount

This KPI shows the difference between entered amount credit and entered amount debit. This metric can be grouped by period, ledger, account, department, segments, supplier, customer, invoice etc.

Accounted Amount Credit

Accounted amount credit helps in tracking the journal entry line credit amount in the ledger currency. This metric can be grouped by period, ledger, account, department, segments, supplier, customer, invoice etc.

Accounted Amount Debit

Accounted amount debit helps in tracking the journal entry line debit amount in the ledger currency. This metric can be grouped by period, ledger, account, department, segments, supplier, customer, invoice etc.

Net Accounted Amount

This KPI shows the difference between accounted amount credit and accounted amount debit. This metric can be grouped by period, ledger, account, department, segments, supplier, customer, invoice etc.

Global Amount Credit

Global amount credit shows the accounted credit amount in the global currency (example USD) by applying appropriate currency conversion rates. It is an important KPI for doing a consolidated GL reporting across all ledgers. This metric can be grouped by period, ledger, account, department, segments, supplier, customer, invoice etc.

Global Amount Debit

Global amount debit shows the accounted debit amount in the global currency (example USD) by applying appropriate currency conversion rates. It is an important KPI for doing a consolidated GL reporting across all ledgers. This metric can be grouped by period, ledger, account, department, segments, supplier, customer, invoice etc.

Net Global Amount

This KPI shows the difference between global amount credit and global amount debit. It is an important KPI for doing a consolidated GL reporting across all ledgers. This metric can be grouped by period, ledger, account, department, segments, supplier, customer, invoice etc.

Invoice Count

Invoice count helps in tracking the number of AP or AR invoices that are recorded in purchase or sales journal.

Invoice Quantity

Invoice quantity helps in tracking the AP or AR invoice quantity against a purchase or sales journal.

Distribution Amount

For purchase and sales journals, distribution amount helps in tracking the amount recorded in AP and AR subledgers.

Supplier Count

For purchase journals, this metric helps in getting the distinct count of suppliers as per the invoices received in AP for a given period.

Customer Count

For sales journals, this metric helps in getting the distinct count of customers as per the invoices created in AR for a given period.

2.1 GL Balances Dashboards

2.1.1 GL Balances Overview Dashboard

The dashboard provides a snapshot of financial data for a given fiscal period, offering key insights into the opening balance, period net movement (actuals), and ending balance. This dynamic dashboard allows users to analyze data at both the segment and hyperion hierarchy levels, promoting in-depth financial understanding and strategic decision-making.

2.1.2 Trial Balance Dashboard

The Trial Balance Dashboard offers a comprehensive view of financial data, presenting opening balances, period net movements, and ending balances at the account level. This dynamic dashboard provides stakeholders with essential insights into the financial health and performance of the organization, facilitating informed decision-making and strategic planning.

2.2 GL Balances KPIs:

Opening Balance Debit

This KPI gives the opening balance debit for a period. This metric can be reported in transaction or ledger currency.

Opening Balance Credit

This KPI gives the opening balance credit for a period. This metric can be reported in transaction or ledger currency.

Opening Balance

This KPI gives the opening balance for a period which is calculated as opening balance debit minus opening balance credit.

Period Net Debit

This KPI gives the activity amount debit recorded for a period. This metric can be reported in transaction or ledger currency.

Period Net Credit

This KPI gives the activity amount credit recorded for a period. This metric can be reported in transaction or ledger currency.

Period Net Movement (Actuals)

This KPI gives the net period activity amount that is debit minus credit for a period. This metric can be reported in transaction or ledger currency

Previous Year Actuals

This KPI gives the previous year actuals for a given period. This metric can be reported at transaction or ledger currency level.

Previous Year Variance and Variance %

These KPI gives the variance between the current year actuals and previous year actuals. It is an important metric to evaluate if the financial numbers such as profit, revenue or expenses are going up or down when compared to previous year data. This metric can be reported at transaction or ledger currency level.

Previous Quarter Actuals

This KPI gives the previous quarter actuals for a given period. This metric can be reported at transaction or ledger currency level.

Previous Quarter Variance and Variance %

These KPI gives the variance between the current quarter actuals and previous quarter actuals. It is an important metric to evaluate if the financial numbers such as profit, revenue or expenses are going up or down when compared to previous quarter data. This metric can be reported at transaction or ledger currency level.

Ending Balance

This KPI gives the ending balance for a period which is calculated by summing transaction currency opening balance and period net movement. This metric can be reported in transaction or ledger currency

Conclusion

Each of these metrics provides critical insights into the performance and efficiency of the account payable processes. Analyzing these metrics helps in making data-driven decisions, optimizing journal analysis, data reconciliation, income statement and balance sheet reporting. The report assists managers and stakeholders in understanding the overall health and effectiveness of the general ledger processes.

How Data platr can help?

Data platr specializes in delivering cutting-edge solutions in the realm of financial Analytics with a focus on leveraging the power of Google Cloud Platform (GCP) / Snowflake / AWS. Through our expertise, we provide comprehensive analytics solutions tailored to optimize general ledger analysis and reconciliation. By harnessing the capabilities of cloud, we offer a robust framework for implementing advanced analytics tools, allowing businesses to gain actionable insights and make data driven decisions.