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Session ID:
Prepared by:
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11099Financial Reconciliation
Automating and streamlining financial reconciliation using Oracle
Business Intelligence
Feb 28 2019
Kalai SelvanPrincipalAgilentPoint
Company Information - AgilentPoint
Serving federal, state and local, commercial and non profit clients since 2006
Prime focus in Oracle software and hardware engagements
Strong in Public sector domain
Proven history of executing large multiyear and complex projects
Adept in aspects from business capture contract negotiations and project execution and services delivery
AgendaWhat is Financial Reconciliation?1
What challenges are we trying to solve?2
Why do we have to solve it?3
What options are available?4
How OBIEE can help resolve these challenges?5
Questions and Answers6
What is Financial Reconciliation?
• Comparing transactions and activity to supporting documentation
• Identifying and resolving discrepancies
• Ensuring accuracy and validity of financial information
It is predominantly account reconciliation
v In simpler terms, ensures that balances of two accounts are in agreement.
v A critical internal control activity for financial reporting.
v Public companies have to perform account reconciliation as part of the financial close
v Sarbanes-Oxley Act (SOX) passed in 2002 emphasizes the need for balance sheet
account reconciliation to be included within a company’s own procedures.
What challenges are we trying to solve?
Manual tasksMore than half of the firms in United States and Canada rely on manual processes for account reconciliation.
Disparate systems• Stand-alone accounting
systems• Multiple (internal and
external) systems for back-office functions
Inefficient processes• Lack of visibility on
reconciliation processes• Activities are tracked via emails
and manual check lists• Cannot identify repetitive issues
o Delays in closing the bookso Risks in complying with
internal controls
Source: Benchmarking (2018) Accounting and Finance functions by Robert Half.
Why do we have to solve it?
• Internal controls compliance, rising demands for compliance in general
• Faster reconciliation of accounts
• Reduction of time and effort in closing the books and financial reporting
• Some intrinsic benefits Jv Less chaos during the period end closev Cut down the long hours and weekends to close the booksv Focus on more value added tasks
What options are available?
E.g. Oracle Account Reconciliation Cloud
Service
Implement a third party OnPremise solution. E.g. Accounts Reconciliations Manager module with Hyperion Financial Close Management
Build an internal reconciliation solution either on-premises or on the cloud.Implement a third party
Cloud Solution
What if my organization has implemented
OBIEE and third-party reconciliation solution is not planned for in
the near term?
What products are included in OBIEE?
Oracle Business Intelligence Suite Extended Edition includes the following products• Oracle Business Intelligence Server Enterprise Edition• Oracle Business Intelligence Answers• Oracle Business Intelligence Interactive Dashboards• Oracle Business Intelligence Publisher• Oracle Business Intelligence Delivers• Oracle Business Intelligence Server Administrator• Oracle WebLogic Server Standard Edition
Note: Your organization may not have licensed all of the above mentioned products unless thelicense is for Extended Edition.
What OBIEE features can help with Financial Reconciliation?Oracle Business Intelligence Interactive Dashboards
Provides personalized views of information which include reports with prompts and various ways to visualize business data
Oracle Business Intelligence Answers
Provides ad-hoc query capabilities and the ability to create Oracle Business Intelligence Interactive Dashboards
Oracle Business Intelligence Publisher
A reporting solution used to author, manage, and deliver reports and documents
Oracle Business Intelligence Delivers
Enables creation and management of multi-step, multi-person and multi-application analytical workflows that provide business activity monitoring
How to leverage the OBIEE features for financial reconciliation?In its simplest form the reconciliation solution should be able analyze a given sets of records, identify records that match and those that does not match• Ingest (and expose) the data to be reconciled into a database
§ Use Oracle Data Integrator or another ETL tool of choice to ingest the data from various data sources including databases and files such as Excel.
§ It is recommended to pre-process the data (e.g. bank statements) while ingesting in order to make it easier for the users to analyze and reconcile.
§ Ensure that the columns within the subject area(s) have user friendly names.• Now we can build “Analysis” with OBIEE Answers to records that match and do not match.
§ We can use features such as pivot tables and filters to help our analysis.§ The analysis can be performed using the data in an external Excel file as well.
• The above approach will provide the minimum viable features needed for reconciling. The data is stored and analyzed in a single location, ensuring that there is a single source of reference.
Add more features incrementally
• The reconciliation solution can be further improved to include more features such as
v Key Performance Indicators (KPIs), for example, percentage of transactions that are not
reconciling
v Aging of the transactions identified for manual reconciliation
v Notifications based on predefined events, for example an unreconciled transaction ages
beyond certain number of days
v BI Publisher can be used to build and generate the reconciliation reports
Automate the reconciliation using Machine Learning• Predictive models can be built using “R” to automate matching the data that may not easily lend
itself to reconcile using traditional programming techniques
• OBIEE 12c supports embedded R execution
• Libraries in ”R” are available for data matching, also known as record linkage.
• A data scientist can build prediction model for reconciliation using various statistical approaches
• This model can be executed within OBIEE to analyze and reconcile the data
• The output of the model will be:
§ Data that reconcile
§ Data that do not reconcile and,
§ Data that potentially reconcile but require manual verification
• The above approach will significantly reduce the manual effort for reconciliation
Session ID:
Remember to complete your evaluation for this session within the app!
11099