Oracle Financial Accounting Hub - Oracle Fusion Accounting Hub - Oracle Sub ledger (XLA)

When oracle designed EBS R12 oracle wanted to have a common accounting engine for all sub ledgers, so they built Sub ledger Accounting (SLA).  Oracle also wanted to provide a platform for customers to generate accounting for all their non Oracle Apps transnational systems using a rule based system.  So we created Financial Accounting Hub (FAH) which exposes the SLA rules engine to external systems so you can bring those into EBS and generate the accounting for multiple systems in one place, using standardized, transparent accounting rules.
Oracle also wanted to provide a way for Peoplesoft, EBS and JDEdwards customers to move to Fusion in an incremental manner, maybe consolidating data from several GL instances into one Fusion system.  The result was Fusion Accounting Hub (FAH).

FAH and SLA both use the exact same technology, XLA is the common framework which handles all accounting feeds into the E-Business Suite General Ledger. Therefore, technically XLA = SLA = FAH

Financials Accounting Hub (FAH):

The EBS Accounting Integration Hub 

• Rules Engine to generate accounting for transactions from third party source systems 
• Single hub automation upstream to ledger with bi-directional drill-down
• Rules configuration with accountant orientated user interface and streamlined accounting generation Trust in figures through centrally controlled accounting rules and full audit trail 
• Based on the Sub ledger Accounting Architecture 
• Deals with external (i.e. non-E-Business Suite) applications.
• No seeded event models 
• Event models need to be build from scratch.
• No seeded accounting rules 
• Accounting rules need to be build from scratch.
• Requires purchasing a separate license.

Sub ledger Accounting (SLA):

•Deals with the E-Business Suite subledger applications (AR, AP, etc.).
•Seeded event models which cannot be changed (extensions can be build using Custom Sources).
•Seeded accounting methods which can be customized (copied and modified) at will.
•Integral part of E-Business Suite Financials (R12 onwards).

Scenario:
Organization acquires new business with legacy Application /Financials (AP, AR, etc)

Management decision:
-Continue transaction in legacy system.
- Perform accounting in EBS.

Mapping:

1. Business Transaction in legacy system
2. Custom tables in ebs to store transaction data  from legacy Application.
3. Accounting of Data in Custom table, based on Accounting rule configured in SLA
4. Journals creation for Accounting in GL.

Setup Overview in FAH 

Define 

• Event Model 
• Accounting Event Option 
• Mapping Set & Account Derivation Rules (ADR) 
• Business Flow Class 
• Journal Line Types (JLT) 
• Journal Lines Definition (JLD) 
• Application Accounting Definition (AAD) 
• Subledger Accounting Method (SLAM) 

Accounting Method Builder (Accounting Rules):

Sources: Feeder Systems into FAH
Entities: Used to group transactions for accounting generation by technique (i.e. ‘Pass through’ vs‘Event Based’)
Event Classes: Used to group transactions for accounting generation (i.e. ‘(Receivable Transaction’, ‘Receipt’)
Event Types: Used to segregate feeder system data into transnational categories (i.e. For Transaction: Invoice, Credit Memo, Debit Memo, etc)

Account Derivation Rules: Determines logic for creation of journal entries from feeder system

FAH supports two types of accounting events that create journals.

• Pass Through:  Accounting entries have been created in the source system and are mapped to the Oracle Chart of Accounts.
• Event Based: Data elements from a transaction are used to create the journal entry.

Reports in SLA/FAH:

• Create Accounting Report
• Journal Entries report
• Sub ledger period close exception report
• sub ledger accounting rules detail listing report
• sub ledger Multi period accounting and accrual reversal report.

Reference: Oracle FAH Implementation guide, user guide and oracle support 

Overview on Financial Accounting Hub

What is Financial Services Accounting Hub (FSAH pronounced as F-SAA):

Oracle Financials Accounting Hub (FAH) allows you to efficiently create detailed, auditable, reconcilable accounting from a variety of source systems and it address the complex demands of centralizing financial operational data, standardizing accounting and reporting policies, and accelerating regulatory information and management reporting cycles.

It is basically standalone Subledger Accounting (SLA), it allows you to use Oracle SLA and GL to perform the accounting for third party applications.

Financial Services Accounting Hub is a separately licensable product.

What is in the hub?
-Transformation of information from disparate systems into centrally and consistently maintained accounting repository.
-Create and store rules for the transformation of data.
-Secure both information and setup definitions.
-Load journal entry information into the accounting repository.

In 11.5.10, the Oracle AP, AR, FA modules have their own respective accounting engines to derive the accounting to Oracle GL. However, in R12, AP, AR, FA and many of the eBusiness Suite modules will use Subledger Accounting (the FSAH engine) to derive the accounting to Oracle GL. The version of FSAH that you have is not setup to derive the accounting from the subledger products (AP, AR, FA) at this time, so FSAH plays no role in interacting with the Oracle Subledgers in 11.5.10.

FSAH is only available in Release 12. FSAH requires the R12 General Ledger.
The E-Business Suite for Release 12 will use subledger accounting (SLA), which is the engine for FSAH and it will allow integration from AP, AR, and FA to GL.

FSAH is designed to work with Oracle and non-Oracle Applications; therefore, with some customization, FSAH can also work with EBS 11i--i.e., you can integrate the two ledgers from 11i and R12.



Note: FSAH is renamed and it is now called as FAH, FAH is only available in Release 12. FAH requires the R12 General Ledger.FAH is only available in Release 12. FAH requires the R12 General Ledger.

Financials Accounting Hub (FAH) is an offering that enables financial institutions to address the complex demands of centralizing financial operational data, standardizing accounting and reporting policies, and accelerating regulatory information and management reporting cycles. Financials Accounting Hub is a separately licensable product. It is basically standalone Subledger Accounting (SLA). This solution is being offered to Oracle and non-Oracle customers. It was originally intended to fill a market need in the financial services industry -- i.e., banks and financial institutions; however, it is now being offered to customers in other industries such as paint manufacturers, insurance companies, and the healthcare industry.