Try to explain the Financial application’s main purpose, most valuable concepts as well as the origination of these concepts.
The content here is only based on three-months experience in EBS financials. Most of them are common concepts involved in all the modules. A little knowledge in General Ledger and Fixed Assets are covered.
The minimum requirements of a financial management system is to collect accurate, timely, complete, reliable and consistent financial information. Based on those financial information and with the help of the system, the organization should have the ability to :
1. provide for adequate management reporting
2. support organization level policy decisions; (multi-level organization with complex hierarchy)
3. support budgets;
4. facilitate the preparation and execution of agency budgets;
5. provide complete audit trail.
For an integrated financial management system, the following characteristics are the minimum :
A. standard data classification (definition and formats) established and used for recording financial events;
B. common processes used for processing similar kinds of transactions;
C. Internal controls over data entry, transaction processing and reporting applied consistently
D. A design that eliminates unnecessary duplication of transaction entry.
The core financial system mainly consists of the following sub-systems:
AA. system management: contains the following processes: Accounting classification management (actually in GL) , transaction control.
A. General Ledger management. GL is the central function of the core financial system. The general ledger is the highest level of summarization and maintains account balances. All transactions to record financial events must post, either individually or in summary to the general ledger, regardless of the origin of the transaction.
Including processes: General Ledger Account Definition; Accruals, Closing and Consolidation; General Ledger Analysis and Reconsolidation.
B. Payment management
C. Receivable Management
D. Fixed Assets Management
E. Budget Management
F. Cost Management