Issues in Oracle r12 Upgradation

7/29/2019 Issues in Oracle r12 Upgradation

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Oracle R12 - Upgrade Considerations by Product

(FINANCIALS)

Oracle Advanced Collections

Oracle Advanced Global Intercompany Systems

Oracle Assets

Oracle Cash Management

Oracle General Ledger

Oracle Legal Entity Configurator

Oracle Payables

Oracle Payments

Oracle Receivables

Bill Presentment Architecture

Oracle Subledger Accounting

Oracle E-Business Tax

Oracle Advanced Collections
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Release 12 of Oracle Advanced Collections extends transactional and customer data in collection

management processes within and across operating units (OUs). New Multi-Org Access Control

security profiles manage each collectors access to operating units to which they are assigned. Thisprovides them with the visibility to customer data and balances within or across OUs on their

collector work list and specific screens for a more complete understanding of each customers

collections situation.

Other new features in release 12 Oracle Advanced Collections include:

New Implementation Checklist and Setup Screens Improved Payment Processing and Customer Funds Capture through

integration with Oracle Payments

Use of Oracle Territory Management to Define Collections Territory HierarchiesFinally, the collections workbench in Oracle Receivables has been replaced with functionality

from Oracle Advanced Collections. Details on the collections features available in Oracle

Receivables and Oracle Advanced Collections are provided in OracleMetaLink Note 389443.1.

Planning Considerations

If you have used the Collections Workbench in Oracle Receivables you must upgrade to either

Oracle Advanced Collections or the new functionality in Oracle Receivables. Oracle Advanced

Collections provides the flexibility and high degree of configurability required by enterprise

collections agents and managers responsible for managing delinquent customers and

collections-related issues. It includes configurable scoring and strategy management tools,

configurable customer metrics, later-stage collections tracking capability, and is directly

integrated to a number of other Oracle EBS products including Oracle Territory Manager,

Oracle Trade Management, Oracle Leasing and Oracle Loans.

The collections functionality available in Oracle Receivables is intended for AR clerks who

occasionally perform collections activities. Receivables users who have not purchased a license

for Oracle Advanced Collections are not authorized to use the full feature set of this product.Therefore, your planning team should consider the long-term operational requirements of your

collections group and upgrade to the appropriate collections management capability that best fits

those requirements.


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Process Change

Pay heed to the order and frequency in which the concurrent programs that automatethe collections processes are run. For instance, some organizations run their scoring or

dunning processes in synch with their billing cycles while others run them more

frequently.

Based on MOAC security, collections agents will be able to see across operating unitsand will need to consider this additional information as they review and work with

customer accounts.

For collections organizations where collectors or collector groups are responsiblefor managing specific customers, collections territories can be created in OracleTerritory Manager to facilitate and manage customer assignment and customer-

related work assignment.

Customer call activity created in Oracle Receivables prior to upgrading to Release12 can be viewed from the Collections History tab by selecting Receivables Calls

from the Type List of Values.

Configuration Change

Start by using the new Collections Implementation Setup tool to create pre-production collections systems for conference room pilots and testing. Once you go

live, your production collections system settings can be easily modified with the Setup

Tool when changes are needed.

Review and use the pre-configured elements (correspondence templates, scoring models, strategiesand work items, and metrics) in pre-production phases of your upgrade. Then add or adjust those

elements as needed.

Aging-based dunning plans in R12 (for either Advanced Collections orReceivables users) include:

o Configurable dunning letter templates using Oracle BI Publishero Output as email, fax or printo Optional dunning calls assigned to collector for follow up

Considerations


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Collections scoring and collections strategies are not extended to OU level. Highestlevel for these are still Customer

Dunning plan capability is available for both Advanced Collections and Receivables users. Configurablecollections strategy management (which also supports dunning activities) is available in Oracle Advanced

Collections.

New collections scoring models and customer metrics in Oracle Advanced Collectionsare best configured by qualified DBAs. New scoring and metrics are usually created

during your upgrade project, prior to going live with the module.

See Oracle Advanced Collections Implementation Guide and Oracle Advanced

Collections User Guide for more information.

Oracle Advanced Global Intercompany Systems

Oracle Advanced Global Intercompany Systems is a new product in Release 12, replacing the

Global Intercompany System in earlier releases. It allows companies to streamline

intercompany processing and facilitates intercompany reconciliation.

The key components of the Advanced Global Intercompany System are:

Intercompany Balancing Manual Intercompany Transactions Intercompany Invoicing Intercompany Reconciliation

Intercompany Balancing

Overview:

Intercompany Balancing calculates intercompany accounting when transactions are

entered directly in the Advanced Global Intercompany system, and also when

intercompany transactions occur in Oracle General Ledger and Oracle Subledger

Accounting. Intercompany Balancing uses the same single set of intercompany accounts


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and rules for consistent accounting treatment throughout Financials. During the R12

upgrade, GIS data is upgraded to AGIS, and you can then use R12 functionality to:

Define all intercompany accounting definitions centrally. Support true legal entity for intercompany transactions between legal entities. Maintain separate intracompany accounting for transactions between

balancing segments in the same legal entity.

Track trading partners in a separate optional intercompany segment.

Process Change

Accounting Setup Manager in Release 12 has a separate setup screen forIntercompany / Intracompany accounts.

Release 12 supports legal entity integration with intercompany balancing rules forintercompany accounts when two legal entities trade. Legal entity configuration is not

needed for intracompany balancing between pairs of balancing segment values within

the same legal entity.

Intercompany balancing supports separate Intercompany Payables andIntercompany Receivables accounts rather than a single intercompany due to/due

from account.

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You can create an optional intercompany segment in your chart of accounts structure. It willautomatically be populated with the balancing segment value of the trading partner to provide more

detail for reporting and reconciliation.


The R12 upgrade converts intercompany accounts created in GIS into intracompanybalancing accounts and rules. Auto-Accounting rules in GIS are not upgraded, and need to

be set up as Account Derivation Rules and compiled with the Transaction Account Builder in

Subledger Accounting.


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To use intercompany accounting rules, you need to setup legal entities for transactingsubsidiaries, map them either to ledgers or balancing segment values, and specify them as

intercompany organizations. As part of the upgrade, GIS subsidiaries will be converted to

intercompany organizations, one for one. You need to verify post-upgrade that the correct

legal entity has been assigned to the intercompany organization so that it can be used. In

some cases the automatic upgrade may not have been able to identify one and only onelegal entity to associate to an intercompany organization. In that case the organization will

be inactive and must be updated with the correct legal entity before it can be used in

transactions.

The R12 Grant Based Security Model maps intercompany organizations to users instead ofresponsibilities. Security grants are created for the users based on the subsidiaries assigned

to the responsibilities that each user was assigned. A user may be given access to many

different intercompany trading partners regardless of the responsibility used to log in.

Considerations

See Oracle Advanced Global Intercompany System Release 12 RoadmapDocument See Advanced Global Intercompany System White Paper

Manual Intercompany Transactions

Overview

The Manual Intercompany Transaction window facilitates intercompany transaction processing betweendifferent legal entities under one or more ledgers. During the R12 upgrade, GIS data is upgraded to AGIS, and

you can then use R12 functionality to:

Create Intercompany Batches for transactions to multiple recipients (no restrictionon COA, currency, calendar), with optional proration of amounts across recipients.

Maintain intercompany periods to control timing of transactions (eg during period close)and close intercompany periods by transaction type.

Optionally create intercompany invoices between subsidiaries automatically Use Oracle Approvals Manager for intercompany transaction approvals. Grant user access to multiple subsidiaries from a single responsibility.

Process Change


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New workbench for entering manual intercompany transaction batches. All GIS new and completed transactions are upgraded as AGIS transaction batches. Generally, for

each GIS transaction a batch is created.


Approvals Manager setup Optionally create intercompany calendar / periods to control timing of

intercompany transaction entry.

Setup intercompany invoicing options. When GIS transaction types are upgraded, the AllowInvoicing option is set to Not Required. In order to take advantage of the new invoicing feature

in AGIS, you should manually select the Allow Invoicing check box for transaction types where

invoicing is required.

Considerations

See also configuration changes / considerations for Intercompany Balancing these apply toall intercompany setup (eg setting up legal entities and mapping them to intercompany

organizations, creating intercompany accounts and rules, intercompany function security

and data access).

Intercompany Invoicing

Overview

Advanced Global Intercompany System interacts with the subledgers to facilitate creation of a physical invoice for

an intercompany transaction in both Receivables and Payables.

Release 12 highlights for Intercompany Invoicing:

Intercompany uses Oracle Receivables to produce invoices for the initiator. Once theReceivables transaction is completed, the invoice number is then automatically used

to create a consistent mirror-image invoice in Oracle Payables.

Process Change

Create intercompany invoices automatically where statutory or business practicesrequire them.


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GIS transaction types are upgraded to the new intercompany system transaction types.When GIS transaction types are upgraded, the Allow Invoicing option is set to Not

Required. In order to take advantage of the new invoicing feature in AGIS, you should

manually select the Allow Invoicing check box for transaction types where invoicing is

required.


Setup and assign operating units to ledgers (as part of Accounting Setup Manager) in order to useintercompany invoicing within the subledgers.

Create additional AR customers and AP suppliers to represent yourcompanys subsidiary legal entities.

Map the intercompany organizations that are trading partners to AP Suppliers and ARCustomers in TCA.

Considerations

Intercompany invoices are only created for manual intercompany transactions (i.e. not for intercompanyjournal entries entered directly in GL).

Creation of additional customer / supplier records and mapping to intercompany organizations is notdone automatically as part of the upgrade.

Intercompany Reconciliation

Overview

Intercompany provides reconciliation tools to sort out any discrepancies in accounting

balances between the intercompany organizations.

Release 12 highlights for Intercompany Reconciliation;

View intercompany out-of-balance accounts and drill down to details of thesubledger accounting and documents.

BI Publisher technology for reconciliation reporting: the layout is fully customizableand can be downloaded to desktop tools (eg Excel or Word) for further analysis.


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Process Change

Need to run data extract program to populate XML data before using theintercompany reconciliation report.

Optionally download report output to Excel for additional analysis.Configuration Change

Optional customize BI Publisher report layouts.

Oracle Assets

In release 12, Oracle Assets has introduced several enhancements to improve the

efficiency of key Assets processes like mass additions and period end close.

Subledger Accounting(SLA) Architecture and Inquirieso Oracle Assets is fully integrated with SLA, which is the common accounting platform for all

E-Business Suite sub ledgers.

o It enables you to comply with multiple legislative, industry or geographyrequirements concurrently in a single instance through configurable rules.

Enhanced Mass Additions for Legacy Conversions:o Populate depreciation attributes directly in the FA Mass Additions interface table or via?

Web ADI (application desktop integrator), rather than accepting default values from the

asset category. This means complete automation of legacy conversions.

o Asset life, depreciation method, prorate convention, bonus rule ceiling name,depreciation limit are some of the attributes that have been added to the

interface table in Release 12.

Automatic Preparation of Mass Additions


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o Default rules and public APIs can be used to populate expense account, assetcategory and other required fields to complete the preparation of mass

addition lines automatically.

o Could significantly reduce the overhead associated with manualpreparation of mass addition lines.

Automatic Depreciation Rollbacko Depreciation is rolled back automatically when any transaction is performed

on an asset if the period has not yet been closed.

o No longer required to run depreciation rollback program manually.o Executed only on select assets as required and not on the entire asset book;

resulting in a faster period close.

Flexible Reporting using XML Publisher Enhanced Functionality for Energy IndustryProcess Change

Prepare Mass Additions process provided in Release 12 automatically populates all the requiredinformation for mass additions lines. Mass

additions data may be optionally verified before posting the mass additions lines.

New SLA Accounting report and online account inquiry provided. The Account Drill Down report hasbeen replaced the Account Analysis report.

The Create Journal Entries and Rollback Journal Entries programs are now obsolete. Create JournalEntries has been replaced by Create Accounting.

The Create Deferred Depreciation Journal Entries program is now obsolete. Usersnow need to run Calculate Deferred Depreciation followed by Create Accounting.

During upgrade, transactions in the current fiscal year in Assets books will have theiraccounting lines migrated to the Subledger Accounting model. Accounting for current

period depreciation will be upgraded only if depreciation has already run for the period,


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and the period remains open. After the upgrade, you can run the SLA post-upgrade

process to update accounting for past transaction data as needed.

Prior to Release12, accounting records were not created until after depreciation had run.For example, if you added an asset and went to the Transaction History form, you would

not see any addition accounting lines if depreciation had not been run. Post upgrade,however, these records would appear in the Transaction History form for additions,

backdated additions, backdated transfers and retirements.


New configurable rules for automatic preparation of mass additions.o You can use default rules provided by Oracle where the expense account is

derived from the clearing account by replacing the natural account segment

from the asset category.

o In addition, default rules populate the asset category based on the clearingaccount from the asset category setup (if there is a one to one match).

o If the default rules do not satisfy your requirements, you can create custom logic coded in apublic API to pre-populate these values.

Generic Subledger Accounting Architecture configuration has been discussed in aseparate section of this document.

In summary, the key setup steps are:

o Compile the Application Accounting Definition in SLA. Please note that the pre-seeded account derivation definitions have been provided for Assets. You can

use the seeded account derivation definitions or modify them as required.

o Complete the Accounting Setup flow in Oracle General Ledger.

Considerations

You may have to look carefully at the clearing account in your category setups if you areplanning to use default rules for automatic preparation of mass addition lines. If you have

been using the same clearing account across different categories, the default rules will

not work effectively.


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In Release 12, Oracle continues to support Account Generator functionality for existingasset books. However, the common SLA platform provides many opportunities to

implement complex accounting rules without customizations. For instance, some of our

customers have requirements where the retirement account is different based upon

the type of retirement (missing, sale, theft, etc). These accounting rules can beconfigured in SLA without complex customizations on your part.

Oracle Cash ManagementOracle Cash Management is an enterprise-wide solution for managing liquidity and

controlling cash. In Release 12, Oracle Cash Management starts leveraging several

architectural cross-product features such as Multi-Org Access Control and SubledgerAccounting.

The key new features in Release 12 are:

Centralized Internal Bank Account Model Bank Account Transfers Bank Account Balances and InterestCentralized Internal Bank Account Model

Overview

In Release 12, internal bank accounts for use in Oracle Payables, Oracle Receivables, Oracle

Payroll, Oracle Treasury and Oracle Cash Management are centrally defined and maintained

in Oracle Cash Management.

Process Change

Internal bank account usage in Oracle Payables, Oracle Receivables, Oracle Payroll,Oracle Treasury and Oracle Cash Management does not change in Release 12. Internal

bank account maintenance, however, is done differently as described below.


There is new user interface in Oracle Cash Management for bank, bank branch and bank accountmaintenance. Windows related to internal bank account maintenance in Oracle Payables and Oracle

Treasury have been made obsolete.


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Privileges to maintain bank accounts are granted to a user role by legal entity in theOracle User Management security wizard.

Internal bank accounts are owned by legal entities. Any operating unit under the same legalentity can be granted access to the same bank account.

Bank account reconciliation parameters are now defined at the bank account level. Before you can enable bank account usage in Oracle Treasury, you will need to link a

bank-counterparty in Treasury to the bank branch in Cash Management, using Treasurys

Counterparty Profiles window.

The system supports country specific validations for the bank account and address format. When creating newbank accounts, the format and content of the Bank Number, Branch Number, Account Number and Check

Digit will vary according to the country specific rules. The countries that are supported are Austria, Belgium,

Denmark, Finland, France, Netherlands, Norway, Portugal, Spain,

Brazil, Colombia, Germany, Greece, Iceland, Ireland, Italy, Luxembourg, Poland,

Sweden, Switzerland, United Kingdom, and United States.

Considerations

During the upgrade, existing internal bank accounts defined in Oracle Payables and OracleTreasury are migrated one-to-one into the new bank account model in Oracle Cash

Management. If you previously had to create two separate bank account records to

represent the same real life bank account because it was used by two different operatingunits, after the upgrade you will have the option to disable the duplicate bank account and

allow both operating units to use the single bank account. This will simplify bank account

maintenance and bank reconciliation.

Bank Account Transfers

Overview

In Release 12, users can create cash transfers between internal bank accounts, settle them through Oracle

Payments and account for them using Oracle Subledger Accounting.

Process Change

New user interface is available for capturing and, separately authorizing bank accounttransfers.


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Bank account transfers can be created intra-company (between two bank accountsbelonging to the same legal entity) or inter-company (between two bank accounts

belonging to two different legal entities).

Reusable bank account transfer templates can be created for accelerated data entry.


Privileges to create bank account transfers are granted to a user role by legal entity inthe Oracle User Management security wizard.

Accounting configuration for bank account transfers is done in subledger accounting.Seeded journal line definitions are provided for bank account transfer clearing and un-

clearing. Users can define additional journal line definitions for bank account transfer

creation and cancelation.

Settlement of bank account transfers is done via Oracle Payments. If you plan to create inter-company bank account transfers, you will need to define inter-

company accounts in Oracle Advanced Global Intercompany System in order to create

proper journal entries.

Considerations

Bank account transfers can be created in the system automatically if you have zero-balance accounts (ZBAs) with your banks.

Bank Account Balances and Interest

Overview

In Release 12, Oracle Cash Management provides robust functionality for bank account balance reporting, both

online and via concurrent programs with Oracle BI Publisher. In addition, bank balance interest can be calculated

for bank fee or credit verification.

Process Change


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There is new bank balance maintenance user interface in Oracle Cash Management. Bankbalance maintenance in Oracle Treasury is disabled. The data, however, is replicated

between Cash Management and Treasury for bank accounts used in Treasury, so that the

interest accrual and settlement can still be performed in Treasury.


There is a new user interface to manage interest rate schedules. Before bank balanceinterest can be calculated, interest rate schedules have to be defined and assigned to

bank accounts.

Basis, Interest Rounding, Day Count Basis and Interest Includes parameters, previouslydefined at the bank account balance level in Oracle Treasury, are now a part of the interest

rate schedules in Oracle Cash Management. Portfolio Code, Pricing Model and Limits,previously defined at the bank account balance level in Treasury, are now a part of the

internal bank account definition in Cash Management.

Considerations

Interest amount can be calculated for both standalone bank accounts and notional cashpools.

For each bank account and balance date, you can keep track of multiple balance types:ledger, available, value dated, 1-day float, 2-day float, projected month-to-date average,

and year-to-date average. It should be noted that the system does not calculate any of

these balance types. They can be populated manually or from the bank statement.

Projected closing bank account balance can be saved alongside actual bank account balances usingthe new button in the Cash Position window.

Oracle General Ledger

In Release 12, Oracle General Ledger is significantly enhanced to support multi-national

companies and shared services centers. You can perform simultaneous accounting for multiple


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reporting requirements. You can also gain processing efficiencies by setting up, accessing, and

processing data across multiple ledgers and legal entities from a single responsibility.

Release 12 highlights for Oracle General Ledger include;

Centralized Accounting Setup Data Access Sets Ledger / Ledger Set Architecture Replacement for Disabled AccountsNote: There is also a terminology change between Release 11i and Release 12: Sets of Books are upgraded and

renamed to Ledgers the upgrade retains all 11i settings.

Centralized Accounting Setup

Overview:

In Release 12, the Accounting Setup Manager centralizes the setup and maintenance of

common accounting-related setup that is shared across Oracle Financials applications, for

example:

Definition of legal entities and associated accounting setup to meet different accountingprinciples and reporting requirements of multiple countries using different currencies,

charts of accounts and/or calendars.

Secondary ledgers and reporting ledgers to create alternate accountingrepresentations automatically.

Process Change

Accounting Setup Manager is used to create and maintain accounting setups. An accounting setupdefines the accounting context for one or more legal entities or other business entities. The upgrade

creates a separate accounting setup for each primary ledger that is upgraded from a set of books.

o Legal Entities: HR Organizations classified as GRE/LEs in Release 11i will beupgraded legal entities in Release 12. Legal entities can be assigned to a ledger and

balancing segment values can optionally be mapped to legal entities to help

identify transactions by legal entity.

o Operating Units: All HR Organizations classified as operating units will bepreserved in Release 12. If operating units are assigned to a set of books, then

they will be associated to a primary ledger in an accounting setup.


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o Primary Ledger: Most sets of books in Release 11i will become primaryledgers in Release 12.

o Secondary Ledgers: Multiple-posting set of books (Global Accounting Engine)will upgrade to secondary ledgers.

o Reporting Currencies: Multiple Reporting Currency (MRC) reporting sets of booksbecome reporting currencies in Release 12.

o Intercompany Accounts: The Release 11i Global Intercompany System (GIS) willbe replaced by Advanced Global Intercompany System (AGIS) and GIS features

will be migrated to the corresponding features in AGIS.

o Subledger Accounting Method: All upgraded ledgers in Release 12 will have asubledger accounting method assigned during the upgrade. Any reporting

currencies assigned to the ledger inherit the subledger accounting method from the

source ledger. The subledger accounting method enables Oracle General Ledger to

integrate with Oracle subledgers using Subledger Accounting. All upgraded, non-

public-sector ledgers will have a subledger accounting method assigned called

Standard Accrual or Standard Cash. All upgraded public sector ledgers will have a

subledger accounting method assigned called Encumbrance Accrual or

Encumbrance Cash. For US Federal customers, all upgraded ledgers will have the US

Federal Accounting subledger accounting method assigned to them.


Create legal entities and assign them to accounting setups either assigned to ledgersor mapped to balancing segment values.

Create primary and secondary ledgers and mappings for alternate accountingrepresentations from single transaction (replacement for the Global Accounting

Engine Dual Posting solution in Release 11i).

Considerations

Sequencing is determined by the ledger. Journal entries may have multiple legalentities (each accounting line may be different), so there is no distinct legal entity of

the journal header.


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In Release 11i, users could change settings for certain options on a primary set of booksindependently of its reporting set of books. The upgrade will preserve the Release 11i

settings, but in Release 12 these options cannot be manually updated for reporting

currencies because the reporting currency will inherit its settings from its source ledger.

If you modify any of the ledger options for the source ledger after the upgrade, the

settings on the reporting currency will automatically be changed to be synchronizedwith the source ledger.

You can run the Accounting Setup Manager Pre-Update Diagnosis Report to view yourRelease 11i setup for Multiple Reporting Currencies, General Ledger, Global Accounting

Engine, Assets, Payables, and Receivables. This

report identifies potential problem areas where you may want to modify your

setup in order to take advantage of new Release 12 functionality.

Data Access Sets

Overview

Data access sets allow users to access multiple ledgers and ledger sets within General

Ledger from a single responsibility. This allows you to:

Secure user access to data by ledger, balancing segment value or management segmentvalue.

Grant read-only user access, or read and write access.Process Change

Process changes do not directly impact users, but rather control General Ledgersecurity behind the scenes.

Security allows you to secure users access to data, or portions of data. Privileges allow you to grant users read only or read/write access to specific Balancing

segment values within a ledger, or to specific ledgers.

Data access sets work with crossvalidation rules and flexfield value security rules. Ifflexfield value security rules are defined that prevent certain responsibilities from

accessing certain segment values, those rules are combined with data access set

security.


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The General Ledger Accounting Setup Program automatically creates a data access setfor each ledger and reporting currency (journal level or subledger level) assigned to a

completed accounting setup. The system-generated data access sets created for eachledger and reporting currency provide full read and write access to the ledger and all

of its balancing segment values and management segment values.

(Optional) Manually create data access sets to further control read and write access toledgers, ledger sets, or specific balancing segment values or management segment

values for a ledger or ledger set. For example, if you have a shared accounting setup

where multiple legal entities share the same primary ledger, you can limit a user's

access to a legal entity's data by creating a data access set that secures read and write

access to specific balancing segment values or legal entities.

To associate a data access set to a responsibility, you must assign a data access set tothe GL: Data Access Set profile option at the Site, Application, or Responsibility level.

Considerations

All ledgers and ledger sets assigned to a data access set must share the same chart ofaccounts and accounting calendar/period type combination.

Use data access sets instead of flexfield value security rules to secure read and writeaccess to balancing segment values and management segment values. Flexfield value

security rules are still applicable for the other segments of the accounting flexfield.

If you have read-only access to a ledger, or read and write access only to some of itsbalancing segment values and management segment values, you will not be able to

open and close its accounting periods.

FSG report output takes into account data access set security and only shows the dataaccessible for your responsibility. You must have at least read access to the data to view

it on a report.

Ledger / Ledger Sets Architecture

Overview

Sets of books are upgraded to ledgers in Release 12. Ledger sets allow grouping of ledgers with the

same chart of accounts and calendar / period type, to allow processing across multiple ledgers


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simultaneously. They do not have to share the same currency. This allows you to group the primary

or secondary ledgers with their associated reporting currencies to reduce maintenance efforts and

streamline processing.

Ledger sets facilitate the following accounting operations across ledgers:

Open / close periods for multiple ledgers simultaneously Submit concurrent programs for all ledgers in a ledger set Cross ledger allocations, recurring journals and year-end closing journals Currency translation for multiple ledgers simultaneously Financial reporting (FSGs) across ledgers Account inquiry across ledgers

Process Change

Management of multiple ledgers simultaneously by grouping them into ledger setsConfiguration Change

Create ledger sets to group ledgers with the same chart of accounts andcalendar / period type.

Assign ledger sets to data access sets for user access and security. The systemautomatically creates a data access set each time you define a new ledger set. The

system generated data access set provides full read and write access to the ledgers in

the ledger set. Before you can begin using the ledgers contained in your ledger set for

transaction processing, you must assign the ledger set to the profile option GL: Data

Access Set.

Considerations

The same ledger can belong to multiple ledger sets, and ledger sets can containother ledger sets.

Use a ledger set to combine the source ledger with its reporting currencies (journaland subledger levels) to open and close periods across all ledgers simultaneously. Boththe source ledger and its reporting currency must have the same open periods to

prevent problems during posting in the general ledger.

Replacement for Disabled Accounts


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Overview

Prevent errors & reduce manual intervention in the journal import process by defining a replacement account for

disabled accounts. If specified, the alternate account is used by the Journal Import process and the Create

Accounting program in Subledger Accounting to replace the original account combination if it is disabled or end-

dated.

Process Change

None


Define alternate accounts when creating GL account combinations.

Oracle Legal Entity ConfiguratorIn Release 12, Oracle E-Business Suite is moving from an implicit definition of legal entities to an

explicit one. You will be able to define legal entities to meet different statutory principles and

reporting requirements of multiple countries and jurisdictions. The Legal Entity architecture allows

you to represent the legal organization structure separately from the operational business

structure. A highlight of Release 12 is the Legal Entity Configurator which guides the user through

the LE creation process.

Overview

The Legal Entity Configurator allows you to define legal entities to meet statutory principles and

reporting requirements of multiple countries or legal jurisdictions. This legal entity definition is

used in the following business processes:

o Payment runs by legal entityo Intercompany (legal entity subsidiaries that trade with each other)o Tax calculations (legal establishments that are registered with a tax

authority)

o Bank account ownershipo Ownership of subledger transactions (eg in Payables or Receivables)o Reporting at the legal entity level


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Process Change

Subledger transactions are stamped (at header level) with the owning legal entity inaddition to an operating unit.

The legal entity is determined as follows:o Each transaction exists within an operating unit and that OU has a ledger which

will account the transactions. If that ledger has more than one legal entity

associated with it, then a hierarchy of LE derivation is used to default an LE. For

example in AR the legal entity derivation hierarchy for transactions is

1. Transaction Type2. Batch SourceAssigning a LE to a transaction type or batch source is optional and only

the LEs mapped to the ledger associated with the OU are available to

assign.

o Legal entity can also be defaulted from the default legal context of an operatingunit if no other default exists. For values to show up in the LOV associated to a

default legal context, an LE must be associated to the ledger that is assigned to

the OU.

oIf no default legal entity value is found from any other source, the user mustexplicitly provide it during transaction entry.

Additional information:

o How do I define my Legal Entities?http://davidhaimes.wordpress.com/2007/11/21/how-do-i-define-my-legal-

entities/

o Can I assign an operating unit to 2 legal entities?http://davidhaimes.wordpress.com/2007/12/11/can-i-assign-an-

operating-unit-to-2-legal-entities/

o Release 12: Legal Entity Uptakehttp://www.oracleappshub.com/release12/release-12-legal-entity-uptake/


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Migration of existing data into legal entities (eg GRE/LEs, AP Reporting Entities,VAT Reporters, Brazilian Companies and Global Descriptive Flexfields)

Create legal entities and assign them to accounting setups. An organization of type GRE/LEis used as a source for creating an LE during the R12 upgrade. But after migration there is

no link between an HR organization of type 'GRE/LE' and an LE created using the Legal

Entity Configurator UIs. Although it is a source for upgraded legal entities, HR Organization

cannot be used for creating a new LE in Release 12.

Configure existing organizations to be legal entities or establishments asappropriate.

Use Legal Entity Associations to maintain the association between business constructs(operating units, inventory organizations, inventory locations etc) and legal constructs

(legal entities and establishments).

Assign legal entities to intercompany organizations (if using AGIS).Considerations

There is no Legal Entity uptake in Oracle General Ledger or Oracle Assets instead theledger or balancing segment value is used.

Sequencing on transactions is still by ledger, not by legal entity. If your legal entities share the same ledger attributes (such as chart of accounts,

calendar, accounting method), it is possible for them to use the same ledger

depending upon your business needs. You can also assign balancing segment values to

legal entities that share the same ledger - recommended for easier identification of

transactions and for reporting purposes. Note that balancing segments are required for

intercompany accounting between legal entities that share the same ledger.

If legal entities differ in any of the 4Cs or require different ledger processing options(like average daily balances, journal approval, or sequencing), separate primaryledgers are required. It may be possible to group multiple ledgers into ledger sets for

easier processing if need to setup multiple ledgers for legal reasons.

In Release 12 there is no direct relationship between an operating unit and a legal entity. One way ofdetermining the operating units associated with a


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legal entity is via the ledger associated with both the legal entity and the

operating unit. Note that there may not be a unique relationship between a

legal entity and an operating unit.

See the Oracle Legal Entity Configurator Release 12 Roadmap Document which describes the

published information available for Oracle Legal Entity Configurator, Release 12. Use thisdocument to ensure that you leverage all existing resources to learn about, install, implement,

and use this product in Release 12.

Oracle Payables

In R12, Oracle Payables has made some significant changes in the following areas.

Supplier Representation in TCA (Trading Community Architecture) Invoice Lines Payment Process AP-AR Netting

Supplier Representation in TCA

Overview

Trading Community Architecture is a data model that allows the deploying company to

maintain information about its parties (customers, suppliers, banks etc) and their relationships

with the deploying company in a centralized place, thereby providing a single source of truth. It

also allows easier cross-product integration.

Process Change

New user interface presents a clear distinction between the suppliers company details andterms and controls for the trading relationship.

Managing the attributes specific to particular functional areas such as OraclePayables, Purchasing and Receiving can be controlled with the use of Function

Security.


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Adding new locations or relationships with additional operating units isstreamlined.

Each supplier is associated with a party and each supplier site is associated with aparty site.

Addresses can be entered and formatted based on country specification.Configuration Change:

When new suppliers are created the system creates a TCA party behind the scenes. Theinformation that will be stored in TCA includes supplier name and legal information,

address and contact information. The parties are created with a party usage of

supplier

Procurement and Payables specific attributes like terms and conditions, accountsetc. are maintained in the supplier sites tables.

Some payment and tax related information is no longer maintained in the suppliersites tables - it was moved to the appropriate product tables (Oracle Payments,

Oracle E-business tax).

Considerations

Existing suppliers, sites or locations and their contact information areautomatically created in TCA.

Existing tables that hold the supplier information are moved to a new set of tables(AP_SUPPLIERS).

New views, based on the old supplier table names have been added forbackward compatibility.

When a supplier or supplier site is merged, the associated party or party site does notchange.

During the supplier merge process, when a supplier site is copied from one supplierto a different supplier, a new supplier site must be created. Hence, a new party site

will also be created.


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When merging suppliers, supplier merge should be performed before initiating the partymerge.

Supplier or supplier site merge does not affect contacts. The contacts are alwaystransferred to the merged supplier site specified in the supplier merge form.

Employees that were defined as suppliers in prior releases will not be migrated, astheir information would already exist in TCA.

Supplier open interface processes are enhanced to support the creation of TCA entitieswhile importing suppliers. The creation of supplier bank accounts is also supported from

the supplier open interface.

Invoice Lines

Overview

The addition of invoice lines allows Oracle Payables to better model the paper or

electronic business document by representing the goods or services, as well as tax, freight and

other charges. The new invoice structure also more accurately models Oracle Procurements PO

shipment, allowing for improved allocation of charges, as well as enhancing the matching

function.

Process Change

The new Invoice Workbench now contains a multi-record block to represent theinvoice lines. In a separate window, users can enter one or more distributions for

every invoice line.

Redesigned matching windows for PO/Receipt matching can be invoked from theInvoice Workbench. Invoice lines that were generated by matching will generate

distributions at the time of match.

New windows support price/quantity/invoice corrections. Freight/miscellaneous lines created automatically via request to the matching process

from the matching windows do not automatically generate distributions at line

creation time.


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Tax, freight, and miscellaneous type invoice lines can be prorated to all item lines onan invoice.

Users can enter freight at the invoice header and then prorate it across all item lines onthe invoice.


Users can also do a quick match by entering just the PO number on the invoice header. In thiscase, the invoice lines are automatically created.

With the new invoice lines model, the R12 multi-period accounting is realized at the invoice line level.Once Subledger Accounting is configured for multi-period accounting, users can specify the deferred

accounting period as a parameter for each individual invoice line. To invoke this feature, users check the

Deferred Option box and specify the deferred period type, start date and number of periods. Later on,

when the accounting records are created for this invoice line and distribution, a series of accountingrecords will be generated reflecting the fact that the invoice expense is first recorded in an accrual

account then moved into expense account periodically.

Considerations

No new setup steps are required for using Invoice Lines. The standard upgrade process creates one invoice line for every distribution existing

in the 11i Payables distribution table.

Exchange rate variance (ERV) and invoice price variance (IPV) amounts becomeseparate distributions in the upgrade process and so, are no longer part of the item

distributions.

Charge (tax/freight/miscellaneous) distributions are created at the maximum level ofdetail to represent detailed allocation information.

In prior releases, the allocations were managed by a charge allocation table which isnow obsolete,

Payment Process Enhancements

Overview

The payment process has been significantly enhanced in Release 12. The following are some

of the new enhancements that were made in this release:


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More robust and flexible payment processing engine Improved visibility into payment processing via the centralized Payments

dashboard

Improved pay run automation Improved pay run management tools:

o Enhanced cash management reporto Comprehensive selected invoice informationo Improved online inquiry of selected invoices

Process payments for multiple operating units from single responsibilityProcess Change

A new Selected Invoices page displays summary and detail information used to viewand analyze invoices selected in a pay run.

Powerful search tools improve online inquiry to invoices that you may want to review,modify, or remove from a pay run.

Users can now view invoices that were not selected due to various reasons (notvalidated/approved).

A Payment Dashboard empowers your payment manager to monitor all current pay runprocessing and gives them visibility to payment processes that require attention.

If payment batch sets were used as a workaround for doing multi-currency pay runs in11i then, consider combining those pay runs into a single pay run. In addition a single

payment run can process multiple banks that includes both electronic and printed

payments

The Payment Process Request template enables you to predefine invoice selectioncriteria, thereby simplifying payment processing.

Validation errors during the payment build process are automatically handled based on the options thatare specified on the payment process request. For example, the process may be stopped for review,

payments with errors can be rejected, or all payments may be rejected in the request if errors exist.

Usage rules and validations can be set up for a payment method.


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Pay runs can be stopped at two points. Users can choose to pause after the invoices areselected. At this point, users can review selected payments, add or remove scheduled

payments or change payment and discount amounts. The second point is after the

scheduled payments are built into payments. Here, the user can see the final amounts

of each payment and can choose to drop any payments.

Scheduled Payment Selection report replaces many portions of the PreliminaryPayment register report. It can be used for reviewing the invoices selected in a pay run,

review invoice selection criteria, determine immediate cash requirements for a pay run

etc.


All payment related setup has now been moved to the new Oracle Payments module.Refer to the Oracle Payments User guide.

In prior releases, Oracle Payables seeded four payment method types (Check,Electronic, Wire, and Clearing). In Release 12, customers can setup their own payment

methods

Considerations

Scheduled Payment Selection report cannot be run for historical data. Custom document categories for payments will not be upgraded. Disbursement type has been made obsolete and hence, it has been removed from all

reports.

IMPORTANT: All custom payment formats must be migrated to XML in order towork in R12.

Check Payments and the Electronic Payments document categories have been retainedin Release 12. However, Payables no longer supports the Wire Payments and Clearing

Payments document categories.

AP-AR Netting

Overview

The AP-AR Netting feature allows you to offset balances in both Oracle Payables and Oracle

Receivables to reduce the outstanding debt owed either from an internal company or from a


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customer. It also supports foreign currency netting. Accounting for netting is handled in the

same way as if it had been closed in the subledgers. This feature allows you to optionally give

the trading partner the opportunity to review and approve transactions before they are

posted.

Process Change

A netting batch needs to be created using the Receivables responsibility. It can includevarious parameters like operating unit, netting agreement, settlement date etc.

Once the batch has been set up, submit the netting batch. Query the netting batch and view the proposed AP/AR netting amounts online. Users

can view the Receivables and Payables transactions that were selected for possiblenetting. In the header portion of the screen users will be able to see the total dollar

amounts of the AP and AR transactions selected as well as the proposed netting

amount. Users could also run the proposed AP/AR netting report.

Optionally, users can review the netting batch. In this process users can review,remove or add transactions before submitting it.

Submit the netting batch and view the final netting report.Configuration Change

Both customers and suppliers must be setup as a trading partner in TCA. Here are some of the additional steps that are required:

o Create a netting agreement.o Create a netting bank account.o Create a netting control account in General Ledger as well as exchange rate

types if using multi-currency netting.

o Establish a paying relationship for the customers in AccountsReceivable.

o Associate the bank account used in the netting agreement with the AP/ARnetting receipt class.

Considerations


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An internal dummy bank account will be seeded which will process receiptsgenerated in Oracle Receivables.

When creating a netting agreement, if the (supplier?) site information is left blank, thenthe system includes all the sites for the trading partner.

If the option to include trading partner approval is selected, only one approver can beselected. The approver name list of values is derived from the customer contact

information.

No netting batch information will be upgraded. Netting agreements will be created for every existing customer and supplier

relationship that is migrated. Agreement name will be created using customer id and

customer name.

Users must review the migrated netting agreement setup to add or correct upgradedinformation. Netting upgrade uses dummy values for certain mandatory information

not found in 11i setup. Users must change this to valid values.

Transaction data residing in interface tables in 11i is not migrated to Release 12. All in-progress netting batches should be closed or completed before upgrade.

Oracle Payments

Oracle Payments is a new product introduced in Release 12 that provides a configurable,

robust and centralized engine for disbursing and receiving payments. Oracle Payments has

changed payment processing within Oracle products:

From proprietary Oracle reporting technology to standardized formatting using XML. From bank accounts stored in multiple products to centralized bank account setup. From credit card information stored in multiple product entities to a centralized credit

card entity within Payments.

From single operating unit restrictions to cross-operating unit transactions..


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From receipt remittance through Receivables to centralized receipt remittance. From payments transmitted by external systems to native transmission

capabilities.

The key components of Oracle Payments are:

Funds Disbursement Funds CaptureFunds Disbursement

Overview:

The funds disbursement features delivered in Oracle Payments simplifies user procedures for

managing complex payment processes that span multiple payment methods, formats,currencies, organizations and bank accounts.

The major features within funds disbursement are:

Funds Disbursement Dashboard that enables payment administrators to manageevery aspect of the process across multiple organizations from a central location

in the application.

End-to-end electronic payment processing that includes validation, aggregation,formatting, and secure transmission of payments to financial institutions andpayment systems.

Remittance advice reporting that notifies a payee of the remittance detail when apayment is made.

Country-specific payment formats and reporting that meet global paymentrequirements.

Process Change:

In Release 12, Oracle Payments segregates the process into two major functions:Payment Build process and the Payment process.

o Payment Build process first groups documents according to various rules,such as the payment method and currency.


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o Payment process aggregates payments from multiple document selections andsubmissions into payment instruction files, formats the files, and handles

additional processing, such as printing and transmission.

Configuration Change:

All payment related setup has been centralized within Oracle Payments. Oracle Payments offers flexible setup to configure funds disbursement

processing. Some of the key areas of impact are:

o Payment Methods: each document to be paid requires a payment method to indicatehow it should be handled in the funds disbursement process. The upgrade seeds

payment methods that existed in Oracle Payables and globalizations. Payment

Methods are now user definable.

o Processing Rules: the payment method on a document links it to processingrules configured in Oracle Payments. These setup rules are held in a key entity

called the Payment Process Profile.

o Payment System: a payment system holds information about the third partyinvolved in processing payments.

The upgrade uses various data from Oracle Payables to create the new PaymentProcess Profiles. See Oracle Payments Implementation Guide for more detailed

information.

All masking of credit cards, debit cards and bank accounts is centrally controlled. Future Dated Payments are renamed to Bills Payable in release 12. Setup has moved

from the payment document on an internal bank account to the payment method in

Oracle Payments.

Considerations:

Both the Automatic Payment Programs and Payment Formats (AP entities) areobsolete in release 12. Also, setup entities related to payment formats within OraclePayables are obsolete as they are effectively replaced by the new Oracle Payments

setup.

Oracle Payments secure electronic payment file and payment message transmissionand transmission result processing replaces previously existing electronic

transmission features in Oracle iPayment, Oracle Payables, and Oracle Globalizations.


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Funds Capture

Overview

Funds capture supports the processes to electronically receive funds owed deploying companies by

debtors, such as customers. Oracle Payments works with AR to authorize and capture funds

against credit cards, process refunds to credit cards, perform electronic funds transfers from bank

accounts, and to format bills receivable.

The major features within funds capture are:

Funds Capture Dashboard provides payment administrators an overview of thepayment process status.

Supports multiple payment processing systems operating simultaneously for fundscapture transactions.

Supports authorization and settlement of funds against credit cards and PINlessdebit cards, refunds to credit cards, electronic funds transfers from bank accounts,

and formatting of bills receivable.

Supports out-of-the-box integration with leading third party payment systems such asCitibank, Paymentech, First Data Merchant Services, and Concord EFS. Other payment

systems, such as VeriSign, offer their own out-of-the-box integrations with Oracle

Payments.

Process Change

Oracle Payments has consolidated notification letters from OracleGlobalizations into an Oracle XML Publisher format.

Oracle Receivables retains the functionality of lockbox processing and electronicupload of remittance messages.



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Centralized, configurable funds capture processing can be setup by Payee, RoutingRules, or Funds Capture Processing Rules. Please refer to Oracle Payments

Implementation Guide for more details.

Credit card security setup can be easily completed using the Oracle Payments PaymentAdministrator responsibility.

The required setup entities for bank account transfer processing are upgraded for you,but it is important for you to understand the new setup and process so you can

successfully test the migrated information

Considerations

EFT online validation is only offered for United States ACH and not for all payment systems.EFT online validation checks whether a bank account exists and that the account is not

flagged fraudulent. EFT online validation does not reserve funds or check if the account hassufficient funds.

Oracle Payments does not support risk management for PINless debit card or bankaccount transfer transactions.

Oracle Payments does not automatically reauthorize settlements that arerejected due to expired authorizations.

See Oracle Payments Implementation Guide and Oracle Payments User Guide for more

information. Also see Metalink Note733537.1 for more details in the Functional Upgrade

Impacts Document for Oracle Payments (FINANCIALS).

Oracle Receivables

Oracle Receivables streamlines the invoice, receipt and customer deduction processes while

simultaneously improving cash flow, increasing efficiency and optimizing customer

relationships. In Release 12, significant changes were made in the following areas:

Revenue Management Line Level Cash Application


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Redesigned Customer User Interface Bill Presentment Architecture

Revenue Management Enhancements

Overview

Enhancements in the Revenue Management area include the ability to distribute revenue in a

more granular fashion which includes full and partial periods. Additionally, organizations may

create their own revenue deferral reasons to ensure revenue is recognized in accordance with

applicable revenue recognition policies.

Process Change

New configurable accounting rules to determine the treatment of revenueallocations for partial periods. Enhanced event-based revenue management allows users to define revenue deferral

reasons and corresponding revenue recognition events specific to their business

practices.

o Ability to create user defined revenue contingency definitions seeded examples include:cancellation, customer creditworthiness, etc.

New Revenue Manager responsibility that provides the revenue analyst a central location to set up andmaintain revenue policies and rule assignments.

Seeded revenue assignment rules have been replaced by a new window that enables theuser to create process specific revenue assignment rules.

New Contingency tab offers the ability to review and manually manage contingencies from theRevenue Adjustment Manager (RAM) wizard.

New Cost of Goods Sold (COGS) and Revenue Matching feature synchronizes the recognition of revenuewith recognition of associated COGS.


Creation of new accounting rules allows for revenue recognition that meetsaccounting standards and contractual start and end dates.

o Example: Able to create an accounting rule for revenue that will distribute revenue acrossidentified accounting periods that can include a partial period (meaning the period does not start

or end on the first or


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last day of the accounting period). During a partial period, the revenue amount will be

prorated based upon the number of days in the period.

The table below provides an example of how the new accounting ruleswould prorate revenue accordingly.

GL Date Period Days in Daily Daily Fixed Variable

Period Revenue Revenue Schedule Schedule

Rate, All Rate,

Periods Partial

Periods

January 14 January 18 180 180 225 180

February 14 February 28 280 295 225 240

March 14 March 31 310 295 225 240

April 13 April 13 130 130 225 240

Ability to create user defined Revenue Assignment Rules:o Example: New Rule for Acceptance:

Matching Criteria (must choose from a seeded choice list): Bill toCustomer

Condition: equals ABC Customer Revenue Contingency: Explicit Acceptance Result: If a transaction line with Bill to Customer of ABC Customer

meets the criteria of this rule -- Receivables will assign explicit

acceptance as the contingency to the transaction line, and the revenue

will be deferred until customer acceptance is received.

New Application Programming Interface (API) automates revenue & COGS matching.Considerations

Oracle costing calls the new Receivables API(AR_match_rev_cogs_grp.populate_cst_tables) that triggers earning and un-earning

of COGS when revenue is recognized or unearned.

COGS and Revenue Matching report has been retired.


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No longer necessary to create manual journal entries for revenue & COGSmatching.

Uptake of SLA does not impact timing and amounts for revenue recognition. It only provides the abilityto override the accounts defaulted via auto-accounting.

Provides the capability to default contingencies from feeder systems.o In R12, Order Management (OM) provides this capability for invoicing & customer

acceptance contingencies. User will assign a contingency at order entry time

based on the contingency defaulting API from Receivables.

o Once this order is imported into Receivables from Order Management, theContingency Defaulting API runs again and can default additional

contingencies but will not over-ride the invoicing and/or customer acceptance

contingency created during initial order entry.

o SLA can only be used to override the accounts created via auto-accounting.

The Revenue Policy System Option available in 11i will be obsolete in R12.o The system will automatically apply the credit worthiness contingency, refund contingency and

extended term contingency for all invoices (that either violate the policy or match the credit

worthiness criteria).

o The revenue policy data (which is populated for certain customers) will automatically show up in thenew revenue policy window. The system will check to see if this revenue policy is populated during

the initial set up.

Upgrade script will convert the contingency ID from prior releases to the newcontingency removal event code.

oOnly impacts those systems interfacing to Receivables throughAutoInvoice or Invoice API.

o No User Interface impacts.

Line Level Cash Application


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Overview

With the introduction of line level cash application, receipts can be applied against specific transaction items such

as individual lines, group of lines or tax or freight buckets.

Process Change

New cash application tree to choose the appropriate application level. Receipts can be applied against:

o one or more transaction lineso all transaction lineso a specific group of transaction lineso a specific transaction line type such as tax, freight, late charges or any

combination thereof

Ability to un-apply and re-apply receipts. Un-apply and re-apply can be done against anentire transaction or to a specific transaction line.


None

Considerations

Line level applications apply to manual cash application only.o However, automated line level application is available via lockbox.

Receipts cannot be applied at the line level against invoices migrated from Release11i, as line level balances were not stored prior to R12.

Available only for invoices, debit memos and chargebacks with line details. Cannot apply against invoices with installments. Does not use application rule sets. If necessary, modify the AR profile option Always Default Transaction Balance

for Applications profile option.

Balances are now stored at the line level regardless of application.o Ability to set flag on Batch Source window to not store balances at line level

in 12.1.


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Customer Standard User Interface (UI) Redesign

Overview

The new HTML based user interface provides a streamlined and intuitive customer data

management flow. Data quality management tools allow users to maintain the integrity of

customer data.

Process Change

Provides functionality to create a new customer, customer account, customer account site, and abusiness purpose for the customer account site.

Tight integration with TCA allows users to take advantage of the DQM (Data QualityManagement) feature. DQM allows the user to perform advanced searches for parties

and customer accounts with user defined criteria. In addition to the advanced search

feature, it can prevent duplicate entries by determining if the customer that is being

created or updated is a potential duplicate.

Ability to classify customers based on industry, location, size, creditworthiness, business volume and payment cycles.


The new Customer Standard UI replaces the five functions that used to exist in priorreleases (Customers Standard, Customers Quick, Customers Summary, Customers

Standard View, and Customers Quick View).

o The pages are built using TCA CPUI (Common Party User Interface)components.

By using TCA components, the cost of maintenance is lowered.Considerations

The Customer Standard menu item will launch the new HTML customer form. No data is affected. Display of data has been enhanced to represent the TCA model.


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Bill Presentment ArchitectureOverview

Bill Presentment Architecture (BPA) allows you to retrieve billing data from multiple sources,including those external to Oracle Receivables. Enhancements were made to the following

features:

Balance Forward Bill Presentmento More appealing and easier to modify bill layoutso Ability to view printed bill exactly as the customer sees ito Rules engine provides the ability to select from unlimited formats

Enhanced Template Assignmento New attributes provide more flexibility in how templates are assigned to

customers

Attachment Printingo Ability to print PDF attachments for specified document categories

Process Change

Balance Forward Bill Presentment:o

Key set up steps include: Register views Select template items Select assignment attributes Create hyperlinks

o Utilize balance forward data source for template assignment.o Two seeded assignment rules:

Default rule for balance forward detail template Default rule for balance forward summary template

o Must run the Generate Balance Forward Bills program Enhanced Template Assignment

o Templates can now automatically be assigned by:


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Any attribute in the invoice header Seeded attributes like Batch Source, Transaction Type or Context

Reference

Supplementary data sources, like header and footer flexfields (e.g.,Projects interface attributes).

New profile option must be set to take advantage of printing attachments for printedbills

o AR:BPA Print Attachment Document Categoryo Applies to both internal & external templates

Considerations

Balance Forward Billing replaces Consolidated Billing.

See Oracle Receivables Reference Guide, Oracle Receivables Implementation Guide and Oracle

Receivables User Guide for more information.

Oracle Subledger Accounting

Oracle Subledger Accounting (SLA) provides a common accounting engine that replaces the

existing accounting processes in the subledger applications. The SLA upgrade involves

migrating existing accounting data between 11i and Release 12 to ensure a continuous

business operation.

NOTE: Please refer to the Oracle Subledger Accounting Implementation Guide for more

detailed information and definitions of the terminology used herein.

Oracle Subledger Accounting has changed accounting within Oracle applications:

From accounting setups within each Oracle module to a unified accounting definition inSubledger Accounting, with a common posting process to Oracle General Ledger.

From separate Global Accounting Engine functionality to a common standard for all Oraclesubledgers (Receivables, Payables, Assets, Project Accounting) within SLA.


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The key upgrade areas impacted by Oracle Subledger Accounting are:

Accounting Rules Transaction account builder Standard reports

Accounting Rules

Overview:

Subledger accounting rules define how journal entries can be created from subledger transactions for both the

primary and secondary ledgers. This centralized accounting setup provides greater flexibility as well as supports

more simplified and standardized accounting rule creation and maintenance. The intuitive user interface does

not require users to know any programming language or to have developer skills.

Process Change:

In R11i and prior releases, accounting for subledger applications existed withinthe individual applications.

With Release 12, accounting for all subledger applications is unified under SLA, with acommon posting process to Oracle General Ledger.

Seeded application accounting definitions are provided for all Oraclesubledgers.

If specific requirements are not met by startup accounting definitions, users can copyand modify the seeded definitions and their assignments.

Configuration Change:

In Release 12, each subledger application will maintain its existing accounting rules; and AccountingMethods Builder (AMB), delivered within Subledger Accounting, will work in conjunction with those rules.

Implementation teams now have the option to override, modify or use the accounting defined within the

subledger applications as the accounting to be transferred to GL.

Considerations


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Standardize your accounting policies by defining a common chart of accounts andaccounting method across the enterprise before creating new accounting rules or

replicating your existing rules within the SLA model.

Accounting Class Codes: In R12, the Accounting Class code is similar to the accountingjournal line types in 11i. In 11i, the accounting journal line types are fixed and can be

only modified by development. In R12, the Accounting Class code is a lookup type

owned by Subledger Accounting. Deploying companies can seed their own Accounting

Class codes and assign them to the different journal lines.

Application Accounting Definitions and Journal Entry Setup: The seed data includes all the AccountingDerivation rules, Journal Descriptions, and Journal Line Definitions for Actual Accounting,

Encumbrance Accounting, Federal Accounting, and Oracle Project Encumbrance Accounting.

Test effective-dated changes to accounting rules and verify the impact before thechange is implemented.

Review existing manual or adjustment journal entries to see if accounting rules can beconfigured to generate journals that eliminate the need for manual or adjustment

journals.

As a best practice, determine whether to enter manual subledger adjusting journalsexclusively in SLA or GL for easier reconciliation.

Accounts that appear on the distributions (either manually entered or generated byaccount generator mechanisms) of subledger transactions such as Payables or

Receivables invoices are not necessarily the final accounts that appear in the SLA and GL

journal entries. In Release 12, the accounts on the transaction distributions become the

default accounts used by SLA accounting rules. Users may configure SLA accounting

rules to further modify the default account by overriding the values for any of the

segments in the account combination. If users define SLA rules to change the default

account, then the SLA and GL journal entries will not match the account stored on the

subledger transaction distribution.

Account generator mechanisms that existed in 11i still exist and provide the samefunctionality in R12.

Transaction Account Builder (TAB)


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Overview

Transaction Account Builder (TAB) provides a flexible mechanism to derive default accounts

for subledger transactions that is fully integrated with Subledger Accounting (SLA). TAB is

intended only for applications that allow users to modify the default accounts for atransaction before it is committed.

Process Change

Advanced Global Intercompany System (AGIS) has adopted TAB in Release 12o Additional setup in AGIS is required to use TAB to define default accounting

for transactions.

o Distributed accounts must be defined for each ledger and are generated asdefined in Subledger Accounting Transaction Account Builder (SLA TAB).


Sources and account derivation rules are shared with Accounting Methods Builder (AMB), whiletransaction account types and transaction account definitions are introduced by Transaction Account

Builder.

Dynamic insertion can be enabled for the chart of accounts so that if the combination does notexist, a new code combination can be created.

Considerations

If the application does not allow modification of the default accounts for a transaction before it isaccounted, the implementation team must use AMB.

Implementation teams may use the seeded transaction account definitions. They mayalso create their own definitions either by copying and modifying seeded definitions, or

by creating new ones from scratch.

If implementation teams decide to create new transaction account definitions, theymay need to create new account derivation rules. These rules can be derived by

accounting flexfield or by segment and may have a chart of accounts associated with

them.

Standard Reports


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Overview

Subledger Accounting owns tables that store all the subledger journal entries and their associated accounting

information. Regardless of which product is used to create accounting, the results are stored in subledger

accounting tables. This information may then be used by analytical applications for inquiries and/or reporting.

A common data model is designed for efficient inquiry, reporting, andextraction.

Oracle BI Publisher reports and templates offer immediate cost savings, greaterefficiency, and improved accuracy and reliability for financial reporting.

Process Change

Oracle BI Publisher is a key reporting tool in Release 12 that enables business users tocreate financials reports with familiar desktop products like Microsoft Word and Excel.

BI Publisher can save reports in many different formats including XML, PDF, RTF, andExcel. It can also publish reports via printer, e-mail, or posting to websites or portals.

With Release 12, weve made it easier to locate and use reports by classifying them intothree main categories:

Journal Reporting Trading Partner Reporting Account Analysis Reporting

Considerations

Analyze custom reports to map out a plan/approach to migrate existing reports toOracle BI Publisher.

Custom reports may need to be modified to extract data from SLA tables ratherthan subledger distribution tables.

Open Account Balance Listing Definitions: In R12, to run the Trial Balance Report for aparticular liability account, you must create the Open Account Balance Listing

Definition. Implementers need to create their own definitions for any new liability


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accounts they have created. The upgrade process will create Open Account Balance

Listing Definitions for each existing liability account per ledger.

Oracle E-Business TaxE-Business Tax is a new product introduced in Release 12 that provides a single point solution for managing

transaction tax requirements across several E-Business Suite products. E-Business Tax has changed transaction

tax handling within Oracle products:

from fixed rules to user configurable rules from single product setup to cross product setup from single organization setup to cross organization setup from multiple engines to single engine (see caveats in sections below) from multiple repositories to unique repository (see caveats in sections below)The key components of E-Business Tax are:

Configuration Options and Provider Service Subscriptions Tax Configuration Manager Tax Determination Services Tax Reporting Tax SimulatorConfiguration Options and Provider Service Subscriptions

Overview

The configuration subscription model delivered by E-Business Tax optimizes tax setup and

ensures tax rules are consistently applied within the enterprise. There are two subscription

options in Release 12:

Internal (or multi-entity) subscription model to share tax setup across entities, withoverriding capabilities at the Legal Entity and Operating Unit levels. The internal

subscription model is based on several key concepts:


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o Configuration Owner: any Legal Entity or Operating Unit that creates and maintainsspecific tax setup data;

o Global Configuration Owner (GCO): enterprise level tax configuration owner. This isthe entity that owns tax setup data that any configuration owner within the

enterprise can subscribe to;

o Option to override GCO tax setup data: a subscribing entity can override the taxsetup data to handle specific re

Documents

Issues in Oracle r12 Upgradation