Here is an example of how the data modeling for a model manufacturing company might be structured:
Legal Entity | Business Unit | Department | Account | Ledger | Financial Dimension |
------- | -------- | -------- | -------- | -------- | -------- |
Model Manufacturing | Sales | East | Accounts Receivable | General Ledger | Customer |
Model Manufacturing | Sales | West | Accounts Receivable | General Ledger | Customer |
Model Manufacturing | Manufacturing | East | Raw Materials | Inventory Ledger | Item |
Model Manufacturing | Manufacturing | West | Raw Materials | Inventory Ledger | Item |
This is just an example, and the specific data modeling will vary depending on the specific needs of the company.
Key components of financial management setup in Oracle OCI for a model manufacturing company, along with their setup, configuration constraints, and real-life scenarios:
Organizational structures
The organizational structures in Oracle OCI for a model manufacturing company would typically include the following:
- Legal entity: The legal entity is the highest level of organization in Oracle OCI. It represents the company itself.
- Business unit: The business unit is a division of the company that is responsible for a specific set of activities.
- Department: The department is a smaller unit within a business unit that is responsible for a specific task or function.
The organizational structures are set up in Oracle OCI by creating a new legal entity, business unit, and department for each entity in the company. The accounts, ledgers, and financial dimensions are then assigned to each entity.
The configuration constraints for the organizational structures are as follows:
- Each legal entity must have a unique name.
- Each business unit must be assigned to a legal entity.
- Each department must be assigned to a business unit.
A real-life scenario for the organizational structures would be a company that has three business units: sales, manufacturing, and finance. The sales business unit would be responsible for selling the company’s products, the manufacturing business unit would be responsible for producing the company’s products, and the finance business unit would be responsible for managing the company’s finances.
Chart of accounts
The chart of accounts in Oracle OCI is a list of all the accounts that will be used to track financial transactions. The accounts are organized into a hierarchy, with each account having a parent and child account.
The chart of accounts is set up in Oracle OCI by creating new accounts and assigning them to a parent account. The accounts can then be assigned to ledgers and financial dimensions.
The configuration constraints for the chart of accounts are as follows:
- Each account must have a unique name.
- Each account must be assigned to a parent account.
- Each account must be assigned to a ledger.
A real-life scenario for the chart of accounts would be a company that has a chart of accounts with the following accounts:
- 1000 – Assets
- 1100 – Cash
- 1200 – Accounts receivable
- 1300 – Inventory
- 2000 – Liabilities
- 2100 – Accounts payable
- 2200 – Accrued expenses
- 3000 – Equity
- 4000 – Revenue
- 5000 – Expenses
Tax setup
The tax setup in Oracle OCI defines the tax rates and regulations that will apply to financial transactions. The tax setup is specific to the company’s location and industry.
The tax setup is set up in Oracle OCI by creating new tax codes and assigning them to accounts. The tax codes can then be assigned to ledgers and financial dimensions.
The configuration constraints for the tax setup are as follows:
- Each tax code must have a unique name.
- Each tax code must be assigned to an account.
A real-life scenario for the tax setup would be a company that has a tax setup with the following tax codes:
- US – Sales tax
- US – Income tax
- CA – Sales tax
- CA – Income tax
Currency setup
The currency setup in Oracle OCI defines the currencies that will be used to track financial transactions. The company may use multiple currencies, depending on its operations.
The currency setup is set up in Oracle OCI by creating new currencies and assigning them to accounts. The currencies can then be assigned to ledgers and financial dimensions.
The configuration constraints for the currency setup are as follows:
- Each currency must have a unique name.
- Each currency must be assigned to an account.
A real-life scenario for the currency setup would be a company that has a currency setup with the following currencies:
- USD – US dollar
- EUR – Euro
- CAD – Canadian dollar
Ledgers
The ledgers in Oracle OCI are the accounting books that will be used to track financial transactions. Each ledger has its own set of accounts and balances.
The ledgers are set up in Oracle OCI by creating new ledgers and assigning them to accounts. The ledgers can then be assigned to financial dimensions.
The configuration constraints for the ledgers are as follows:
- Each ledger must have a unique name.
- Each ledger must be assigned to an account.
A real-life scenario for the ledgers would be a company that has a ledger setup with the
Financial dimensions
The financial dimensions in Oracle OCI are the dimensions that will be used to analyze financial data. The dimensions can be used to group, filter, and summarize financial data.
The financial dimensions are set up in Oracle OCI by creating new dimensions and assigning them to accounts. The dimensions can then be assigned to ledgers.
The configuration constraints for the financial dimensions are as follows:
- Each dimension must have a unique name.
- Each dimension must be assigned to an account.
A real-life scenario for the financial dimensions would be a company that has a financial dimensions setup with the following dimensions:
- Customer
- Product
- Location
- Time
Security
The security in Oracle OCI defines the users and roles that will have access to financial data. The security is used to protect the confidentiality and integrity of financial data.
The security is set up in Oracle OCI by creating new users and assigning them to roles. The roles are then assigned to accounts and ledgers.
The configuration constraints for the security are as follows:
- Each user must have a unique name.
- Each user must be assigned to a role.
- Each role must be assigned to an account or ledger.
A real-life scenario for the security would be a company that has a security setup with the following users:
- Sales manager
- Manufacturing manager
- Finance manager
Each user would be assigned to a role that grants them access to the financial data that they need to perform their job duties.
