Financial controls.LogicalApps, a provider of embedded governance software for enterprise applications, has released an extensive library of controls for Oracle E-Business Suite A group of integrated Internet-based applications from Oracle. Introduced in 2001 as Version 11i, it includes modules for CRM, finance, human resources, supply chain management as well as applications for business intelligence. , representing best practices in financial management. Delivered as part of Active Governance 7.1 platform, this new solution "helps ensure the integrity of financial data and improve the efficiency of the financial reporting process by monitoring user activity, financial transactions, changes to master data and application setup activities within the ERP (Enterprise Resource Planning) An integrated information system that serves all departments within an enterprise. Evolving out of the manufacturing industry, ERP implies the use of packaged software rather than proprietary software written by or for one customer. [enterprise resource planning See ERP. (application, business) Enterprise Resource Planning - (ERP) Any software system designed to support and automate the business processes of medium and large businesses. ] environment," the Irvine, Calif.-based company said in an announcement. The Active Governance pre-packaged controls for financial integrity are categorized into three functional groups: Operational controls encompass basic transaction, application setup and master data validation In computer science, data validation is the process of ensuring that a program operates on clean, correct and useful data. It uses routines, often called validation rules, that check for correctness or meaningfulness of data that are input to the system. ; Risk Management controls identify significant cash, credit and asset risk exposure; and Reportable Event controls address the fiscal responsibility that companies have to disclose any material event that may potentially impact the organization's financial health. "Many solutions intended to address enterprise compliance, governance and risk are like holiday gifts--some assembly required, and batteries not included," said Michael Dortch, principal business analyst with Robert Frances Group. "By embedding its solution directly within applications such as the Oracle E-Business Suite, LogicalApps addresses the 'first mile' and 'last mile' problems that bedevil so many enterprise efforts to address compliance, governance and risk by ensuring inclusion of every user. This approach can help to protect enterprises more effectively, and to maximize the business value of their IT investments." The controls can also be applied to specific business process areas to improve financial statement accuracy. Some of these areas include: * Purchasing controls determine when a purchase order is over a given limit, when the terms differ from those on a vendor master or when a single vendor is paid twice in a given time frame. * Inventory controls notify users when items have been dormant for a specified period of time, or when the purchase price variance The materials price variance (Vmp) is computed as follows: Vmp = (Actual Unit Cost - Standard Unit Cost) * Actual Quantity Purchased or Vmp = (Actual Quantity Purchased * Actual Unit Cost) - (Actual Quantity Purchased * Standard Unit Cost). of an item exceeds a given percentage. * Revenue recognition controls determine when an invoice or sales order The sales order, sometimes abbreviated as SO, is an order received by a business from a customer. A sales order may be for products and/or services. Given the wide variety of businesses, this means that the orders can be fulfilled in several ways. amount falls out of an established range, or when sales order shipping or payment terms differ from the customer master. * Accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying controls include fluctuations of days sales outstanding In accountancy, Days Sales Outstanding is a company's average collection period. A low figure indicates that the company collects its outstanding receivables quickly. Typically it is looked at either quarterly or yearly (90 or 365 days). balances, tests of reasonableness on the bad debt reserve and the creation of manual journal entries. Web: www.logicalapps.com |
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