MOAC Setup R12

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Overview of the New Financial Architecture in Oracle E-Business Suite Release 12 Mary Burns

The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions.The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.

Agenda

• What We Set Out To Address• Release Twelve: The Global Release

• Global Architecture • MultiOrg Access Control• Subledger Accounting• Ledgers and Ledger Sets• Ledger Considerations

• Global Business Functions• Legal Entities

• Accounting Set Up Manager• E-Business Tax• Advanced Intercompany• Banking Model


What we set out to address

National and International Laws & Regulations

Actions by Competitors

Changing Customer Requirements

Industry Standards and Regulations

Tax Codes

Changing Workforce Attitudes

International Reporting Standards

Language and Cultural Differences

11

Doing Business Globally is ComplexTop Drivers of Complexity

22

33

44

55

66

77

88

Direct impact on Finance

Source: PWC, 9th Annual Global CEO Survey

Globalization is unstoppable. Regardless of geography, industry or income, companies are globalizing to gain new customers and access new markets. Is this a good thing? Nearly two-thirds of the CEOs we surveyed

are positive about the impact that globalization will have on their

organizations over the next three years.

Source: 9th Annual Global CEO Survey – Globalization and Complexity; PwC 2006

Make it Simpler to do your job Control Costs by Managing Complexity

50%

Senior executives say simplification is driving the Finance agenda

Major Focus

Standardizing operating practices and controls

69%

Standardizing policies and business rules

66%

Standardizing and integrating finance systems

59%

Adopting best practices 58%

Optimizing the finance organization and its reporting structure

52%

Reducing reliance on spreadsheets 33%

Source: PWC Management Barometer

Make it Easier to do Your Job

Transactional ActivitiesControl ActivitiesDecision Support, Performance Mgmt

50% Improve processes or rationalize technologies

60% Standardize policies, rules, and processes across the entire enterprise

73% Implement a shared services model *

80% Adopt best practices or simplify processes across the entire enterprise

47%26%

27%

The Agile CFO, IBM Business Consulting Services, 2005

* Deloitte Consulting, 2006

How Finance Spends its Time % Yet To…

ControlledTransactionEntry

ControlledTransactionEntry

Comprehensive and compliant

processing

Comprehensive and compliant

processing

Transparent Audit,

Reconciliation& Drilldown

Transparent Audit,

Reconciliation& Drilldown

Easy ReportingEasy Reporting

AnalyticsAnalytics

Customers: Centralize, Simplify, Standardize

Work Globally, to be more competitive

Think Globally, to make the right decisions

Manage Globally, to lower cost and increase performance

FinancialData for

Management - and

Compliant

FinancialData for

Management - and

Compliant

National ComplianceLocal RegulationNational COALocal Calendar

Corp. ComplianceUS GAAP / IAS-IFRSCorp COACorp Calendar

$

Joint ComplianceUS GAAP / IAS-IFRSCorp COACorp CalendarA$+$

€

Parent ComplianceUS GAAP / IAS-IFRSCorp COACorp Calendar

€+$

+

WORK GLOBALLYTo Be More Competitive

WORK GLOBALLYTo Be More Competitive

THINK GLOBALLYTo Make the Right Decisions

THINK GLOBALLYTo Make the Right Decisions

MANAGE GLOBALLYTo Lower Cost & Increase

Performance

MANAGE GLOBALLYTo Lower Cost & Increase

Performance

How Financials Release 12 Can HelpThe Global Business Release

Financial Control & Reporting

Credit-to-Cash

Procure-to-Pay

Treasury & Tax

Performance Management

Profitability Management

Business Intelligence

Integration

Data Management

Reporting

Governance, Risk & Compliance

Asset Management

Travel & Expense

Global:1. Of, relating to, or involving the entire earth;

worldwide: global peace; global monetary policies, etc.

2. Comprehensive; total: a... global, generalized sense of well-being


Release Twelve

The Global Business Release:

A New Financial Architecture

Global Financial Architecture

BankBankModModelel

Tax Tax EngineEngine

InterInterCompanyCompany

General Ledger General Ledger Ledger & Ledger Ledger & Ledger Sets Sets

General Ledger General Ledger Ledger & Ledger Ledger & Ledger Sets Sets

Subledger Accounting (SLA) Subledger Accounting (SLA) Subledger Accounting (SLA) Subledger Accounting (SLA) DrDr CrCr

ProjectsProjectsReceivablesReceivablesInventory

Inventory

Work in ProcessWork in Process

PurchasingPurchasing PayablesPayables

Multi-Multi-OrgOrg

AccessAccessControlControl

Multi-Multi-OrgOrg


6 Major Initiatives1. Ledger and

Ledger Sets

2. Multi-Org Access Control

3. Subledger Accounting

4. Tax Engine

5. Intercompany

6. Bank Model


Multi-Org

Access Control

ThinkWork Manage

ResponsibilityResponsibility ResponsibilityResponsibility ResponsibilityResponsibility

Holland

Legal Entity

Denmark

Legal Entity

Belgium

Legal EntityFunctional Tasks Order Management Dunning, Collections,

Billing Requisition, Demand &

Purchase Orders Receiving & Drop Ship Invoice Receipt,

Disbursement Customer Data

Management Accounting Setup

Functional Tasks Order Management Dunning, Collections,

Billing Requisition, Demand &

Purchase Orders Receiving & Drop Ship Invoice Receipt,

Disbursement Customer Data

Management Accounting Setup

Single Responsibility

Belgium

Operating Unit

Holland

Operating Unit

Denmark

Operating Unit

Perform multiple tasks across operating units without changing

responsibilities

MOAC: Multi-Org Access ControlRole based access to Operating Units

Purpose Built Cross OU “Desks”Shared Services

Shared ServiceShared Service Product ReferenceProduct Reference

Order Management Order Management

Dunning, Collections, Billing Receivables

Requisition, Demand & Purchase Orders

Procurement

Receiving & Drop Ship Supply Chain Management

Invoice Receipt, Disbursement Payables

Customer Data Management Trading Community Architecture

Accounting Setup Accounting Setup Manager

Multiple Organization Access ControlSummary of Changes

• Security Profiles for data security• MO: Security Profile• List of operating units for a responsibility• Defined in HR

• OU field on UI• all transactions• setup data specific to OU, like transaction type

• Enhanced Multi-Org Reporting and Processing• Ledger/Ledger Set parameter on accounting reports and processes• OU parameter on other standard reports and processes• For example: submit the Payables Open Interface Import w/OU

param null to import all records across all OUs

Multi-Org Access ControlIn practice

Classify Organization as operating

unit

Select Operating Unit classification

SelectOperating

UnitsIn daily use

Run ReportsAcross

Operating Units


Subledger Accounting

ThinkWork Manage

ProjectProjectss

ProjectProjectss

ReceivableReceivabless

ReceivableReceivabless

PayablePayabless

PayablePayabless

3rd Party

Systems

3rd Party

Systems

InventoInventoryry

InventoInventoryry

3rd Party

Systems

3rd Party

Systems

Centralized Accounting PoliciesGreater Control, Transparency and Auditability

• Internal control and compliance with multiple accounting policies through user-defined accounting rules

• Single source of truth for all subsystem accounting activity with a common data model and repository

• Accounting, reconciliation and reporting facilitated by centralized data model

• Streamline closing process with common posting engine

• Auditable and transparent entries accessible with full drilldown

Centralized Accounting Centralized Accounting Model, Model,

Rules, Engine and RepositoryRules, Engine and Repository

Centralized Accounting Centralized Accounting Model, Model,

Rules, Engine and RepositoryRules, Engine and Repository

DrDr CrCr

General Ledger General Ledger General Ledger General Ledger

Work in Work in ProcessProcessWork in Work in ProcessProcess

PurchasinPurchasingg

PurchasinPurchasingg

Subledger AccountingCentralized Rules, Common Repository: Global Control

Payables InvoicePayables Invoice

French RulesPlan ComptableFrench Calendar

EUR

Ledger

Subledger

Accounting

Subledger

Accounting

Dr Cr

• Faster, Easier Reconciliation

• Corporate Rules = Accounting Standardization

• Local Rules = Improved Local Compliance

• Automate “Apples to Apples” Adjustments

• Improved Audit- ability

• Improved Internal Control

Some Benefits

• Accounting Rules• SarBox & 8th Dir.• User Editable

• Subledger Daybooks (Journals)

• Subledger Balancing• Reports, inquiries, open

items, et cetera• Multiple

Representations• Common Posting to GL

Ledgers • Real time or Periodic

What it is

Subledger AccountingTransaction Level Compliance

Event Class: InvoicesEvent: Invoice Approved Ledger: France (EUR)GL Date: 20-Sep-2005 Description: Office supplies Type Account Description Debit Credit

Asset purchase 01.9100010.100 Paris: furniture 10,000Misc expense 01.9100020.100 Paris: supplies 400Misc expense 01.9100020.200 Nantes: supplies 100Misc expense 01.9100020.300 Nice: supplies 300VAT 01.3100060.000 VAT@17% 1,836Accounts Payable 01.7000010.000 ABC Supplies 12,636

12,636 12,636

• National Daily Journal Requirements• Internal Control: Central Definitions, Eliminate overrides

• Policy Enforcement in Volume Processing

• Transparent Accounting Rules• Debits & Credit at the point of the event• Automate Foreign Operation adjustments• Reconciliation

Platform• “In accordance

with theUnderlyingRecords”

Opening Balance Debit Credit

Closing Balance

SUBLEDGER ACCOUNTING

Receivables

Customer One 250,000 150,000 400,000 - Customer Two 350,000 250,000 450,000 150,000 Customer Three 100,000 1,500,000 1,400,000 200,000 Customer Four 100,000 800,000 750,000 150,000 Customer Five 200,000 300,000 500,000 - Total 1,000,000 3,000,000 3,500,000 500,000

Payables

Vendor I (250,000) 1,000,000 900,000 (150,000) Vendor I I (100,000) 75,000 50,000 (75,000) Vendor I I I (150,000) 725,000 775,000 (200,000) Vendor IX (250,000) 1,000,000 975,000 (225,000) Total (750,000) 2,800,000 2,700,000 (650,000)

Opening Balance Debit Credit

Closing Balance

GENERAL LEDGERCash 100 3,500,000 2,750,000 750,100 Receivables 1,000,000 3,000,000 3,500,000 500,000

Inventory 500,000 1,200,000 1,500,000 200,000 Assets 100,000 100,000 Prepayments 1,000 1,000 Payables (750,000) 2,800,000 2,700,000 (650,000) Accruals (250,000) 50,000 (300,000) Shares (100,000) (100,000) Previous Results (501,100) (501,100) Balance Sheet - 10,500,000 10,500,000 -

Sales 3,000,000 (3,000,000) COGS 1,500,000 1,500,000 R&D 300,000 300,000 S&M 300,000 300,000 G&A-Fin 300,000 300,000 G&A-IT 150,000 150,000 G&A-HR 150,000 150,000 Period Income 300,000 300,000 Income Statement - 24,000,000 24,000,000 -

Ticked & Tied

General Ledger

SLA Detail

SLA Controls that GL Balances and SLA Balances tie,and that both tie to the document

(invoice, payment, etc.)sources

US GAAPUS GAAPUS COAUS COAUS US CalendarCalendar

EUREUR

Ledger BLedger B

French RulesFrench RulesPlan Plan ComptableComptableFrench French CalendarCalendar

EUREUR

Ledger ALedger A

Multiple Accounting RepresentationsGlobal Compliance – Statutory and Stock Market

SubledgeSubledger r

AccountiAccountingng

SubledgeSubledger r

AccountiAccountingng

Single subledger

transactioncan create multiple

accounting representationsand in multiple

currencies

Single subledger

transactioncan create multiple

accounting representationsand in multiple

currencies

DrDr CrCr

Payables InvoicePayables InvoicePayables InvoicePayables Invoice

Chose to use an alternative

Ledger -or just an

AdjustmentLedger or segment

Chose to use an alternative

Ledger -or just an

AdjustmentLedger or segment

or

Multiple LedgersMultiple Ledgers

SLA keeps the Subledgers & GL tied outKeep the auditors happy!

GLJournal Entries

and BalancesTransactions

(& adjustments)

Subledger Applications

Accounting Events

Reconciled:Docs, SLA, GL in synch

AccountingConfigurations

Journal Entry Setup

AccountingProgram

SubledgerJournal Entries

SubledgerBalances

Subledger AccountingService

GeneralLedger


Ledgers and Ledger Sets

ThinkWork Manage

LedgerOne Repository of Financial Truth

US GAAPUS COAUS Calendar

EUR

Ledger BLedger B

Reporting Currency

Implements the 4 Implements the 4 C’s:C’s:

AAcccounting counting MethodMethodCChart of hart of AccountsAccountsCCalendaralendarCCurrencyurrency

Implements the 4 Implements the 4 C’s:C’s:

AAcccounting counting MethodMethodCChart of hart of AccountsAccountsCCalendaralendarCCurrencyurrency

The balance on Creditors (COA) is 4.2M Eur (Currency)

on March 31, 2006 (Calendar) according to IAS/IFRS definitions (Accounting Method)

Ledger Sets Global Information At A Glance


EUR

Ledger BLedger B


EUR

Ledger ALedger A

Reporting Currency

Ledger Sets Global Information At A Glance

Ledger Ledger SetSet

Ledger Ledger SetSet

Key benefits to many Ledgers in one set

•Decision-driving business information always available

•Simpler processing and General Ledger management

•Data and definitions that can be shared and secured


USD


USD

Ledger CLedger CLedger CLedger C


EUR

Ledger BLedger B


EUR

Ledger ALedger A

Share:Share:CChart of hart of AccountsAccounts

CCalendaralendar

Share:Share:CChart of hart of AccountsAccounts

CCalendaralendar

Ledger DLedger DLedger DLedger D

Reporting Currency


AUD

Currency in Release 12

• Transaction Currencies• Accounting Currency in Primary Ledger• Reporting Currency in Primary Ledger• More Accounting Currencies in Secondary Ledgers

• For every transaction OR• For SLA Posting level / GL activity level

• Balance level Translation or Remeasurement in Ledgers – within Ledger sets, run at one click

• Balance & Activity level Translation or Remeasurement in Financial Consolidation Hub

• Enhanced Revaluation• [Functional Currency term dropped: conflicts with IAS 21 / FAS 52]

Data Access, Definition Access

• Data Access Sets • Grant and tailor access to Ledgers and Balancing Segment

Values (i.e. Companies, Stores, Branches, etc.)

Accountant

Privileges

France LedgerFrance Ledger

Canada LedgerCanada Ledger

US LedgerUS Ledger

GL ManagerView Write

• Definition Access Sets – separate from data security• Share, restrict definitions; privileges to view, modify, etc.


Ledger Considerations

Ledger Sets – Work them your way

CorporateLedger Set

adjustments eliminations

UK Ledger Set

US Ledger Set

Legal LedgerUK1

Legal LedgerUK2

Adj LedgerCorporate

Adjustment Ledger UK

Adjustment Ledger US

Legal LedgerUS1

Legal LedgerUS3

Legal Ledger

US2

ManagementLedger SetManagementLedger Set

• Automate GAAP / IAS adjustments in an adjusting ledger

• Eliminate within a Set with GCS

• Consolidate Formally in FCH

• Map from a non-conforming COA with a GCS Ledger

• Automate GAAP / IAS adjustments in an adjusting ledger

• Eliminate within a Set with GCS

• Consolidate Formally in FCH

• Map from a non-conforming COA with a GCS Ledger

• Set of 26 Ledgers in one country

• Euro Zone in One Ledger Set

• My Corporate Set in US GAAP

• Statutory Set for Country Y Subs

• Division X Worldwide Ledger Set

• Set of 26 Ledgers in one country

• Euro Zone in One Ledger Set

• My Corporate Set in US GAAP

• Statutory Set for Country Y Subs

• Division X Worldwide Ledger Set

When to use a Secondary Ledger, an Adjusting Segment or an Adjusting Ledger?

Adjusting Adjusting SegmentSegment

AdjustingAdjustingLedgerLedger

SecondarySecondaryLedgerLedger

Corp. wants GL balances per Parent GAAP

Corp. wants “Just the adjustments, thank you”

Corp. wants a complete Parent GAAP & Currency edition of the Sub’s books

Subsidiary books are pretty similar to parents

Mapping gets us most of the way to Parent

Subsidiary books are quite alien to parents

No inventoryInventory is the big

differenceInventory is one of the big

differences

National chart of accounts is clearly related to IAS IFRS or GAAP balances

Manageable series of reclassifications

National chart of accounts is radically different from

corporate

National Controllership- Corp GAAP known

Regional Controllership- Corp GAAP administered

Parent ControllershipMexico plant, US parent

Balances are enough(Full drill down available)

See they’ve been properly adjusted to our rules

Every petty cash slip


Global Business Functions

ThinkWork Manage

Legal Entity: Your Registered Companies

Legal AuthoritiesCountries, States, Local,

Agencies, Taxation,Registrars, Regulators...

Legal EntitiesRegistered Companies,Funds, Partnerships…

Inc. LLC. Ltd. SA. GmBH. Etc. “exist in the outside world”

Management OrgsDivisions, LOBS, Plants, Cost Centers, Whatever =“Decision Making Tags”

Regulates

Managed & analyzed by

PublicCompany

(ultimate parent)

PublicCompany

SubsidiaryCompany

(regional parent)

SubsidiaryCompany

(business parent)

SubsidiaryCompany

SubsidiaryCompany

SubsidiaryCompany

SubsidiaryCompany

SubsidiaryCompany

• Parent companies (LEs) “own or control” subsidiaries (LEs)

• No outside ring - must pick an LE

• LEs create commercial transactions

Complies

LEs: Why and What?

• LEs pay the taxes - need tax registrations

• Trade between LEsneeds intercompany

• LEs own the moneyand bank accounts

• LEs file the accounts, take care of accounting

• LEs comply with whatever needscompliance: “legal” in LE

Why We Care

• Addresses, Officers, etc.

• Enabled First Party stamp

• Added Establishments:map Registrations to Authorities

• GRE/LE not touched

• Authorities as TCA parties

• LE Configurator

What we’ve done

Setup and maintain: Legal Entities, Establishments, Jurisdictions, Legal Authorities, Legal Addresses

Tabulate your Registered Companies and other forms of LE

Where LE fits in…

Transaction Taxes -

Complies &Files, Pays

Actual RegisteredCompanies, etc.

Et Cetera, 11iMaintains its SubledgerDocuments in many OUsDefault LegalContext (DLC)

Maintains its SubledgerDocuments in many OUsDefault LegalContext (DLC)

Accounts for itself

in a Ledger or BSVs

Accounts for itself

in a Ledger or BSVs

LegalEntity

Ledger

BusinessGroup

GRE/LE

OperatingUnits

Registrationswith Authorities

Files Files

FilesFiles

Establishments


Legal Entity:Vehicle for compliance


ExistsLocallyExistsLocally

Transaction Taxes -

Complies &Files, Pays

Actual RegisteredCompanies, etc.

Et Cetera, 11iMaintains its SubledgerDocuments in many OUsDefault LegalContext (DLC)

Maintains its SubledgerDocuments in many OUsDefault LegalContext (DLC)

Accounts for itself

in a Ledger or BSVs

Accounts for itself

in a Ledger or BSVs

LegalEntity

Ledger

BusinessGroup

GRE/LE

OperatingUnits


Files Files

FilesFiles

Establishments


ExistsLocallyExistsLocally



Get the LE RightCompliance Falls Into Place

Let’s put LEs to work• Isolate legal compliance from management needs• Track your registered companies• Make your compliance flow more easily

Accounting Setup ManagerAssign books, bookkeeping rules and currency management to your registered companies

EBusiness TaxHave your registered companies calculate, file, and pay the transaction taxes they owe

IntercompanyDo business between and across your registered companies with full legal documentation

Bank ModelHave your registered companies use their money to pay their bills, et cetera


Accounting Setup Manager (ASM)

ThinkWork Manage

Define Multiple Ledgers for Rules & Currencies

Define Legal Entities& Associated Rules

One Place to manageYour Global Accounting

Rules, Currencies,Ledgers,

And Ledger Sets Set Accounting Rules

for All EBS Apps

Ensure Complete & Accurate

Setup via Online Checklist

Centralized Set-upAccounting Setup Manager


E-Business Tax

ThinkWork Manage

Automation

• Tax content for certain countries

• Vertex and Taxware integration for U.S.

• Integrity checks during setup process

Constant Changes in Tax Laws and Regulations

• Date effective setup

• Tax rules flow for change or creating rules

• Tax simulator for setup, rules, and transactions

Business NeedsBusiness Needs SolutionSolution

Local Compliance

• Tax registrations and tax reporting codes

• Tax lines determine applicable taxes

• Configurable tax reporting templates

Centralized Global TaxLess Complex Global Tax Compliance

Information Visibility

• Single set up for all Oracle applications

• Use of E-Business Suite components such as trading partner geography, trading partner classification, legal entity, inventory item categorization, and accounting event.

Tax Transactions

Taxes,Rules

Oracle E-Business TaxProcessing taxes for transactions and reporting

DetermineRegimes

TaxableBasis

CalculateTax

Amount

Tax Status& Rate

ApplicableTaxes

Single Interface for TransactionsSingle Interface for Transactions

Transparent Integration with Tax Partner ServicesTransparent Integration with Tax Partner Services

PartiesParties

PlacesPlaces

ProductsProducts

ProcessesProcesses

Payables

Receivables

Purchasing

Transactions

Sales Orders

…Tax Reports

- PDF, HTML, RTF- Security enabled

Extensible Service Oriented Architecture

Compliance, Assurance Efficiency, Global Visibility


Advanced Intercompany (AGIS)

ThinkWork Manage

Web UIWeb UI

Open Open Interfaces / Interfaces /

APIAPI

Excel Excel

(Web ADI)(Web ADI)

Advanced GlobalIntercompany

System

Advanced GlobalIntercompany

SystemSubledgerSubledgerInvoices &Invoices &DocumentsDocuments

Generate subledger invoicesGenerate subledger invoices

Control transaction entry with Control transaction entry with Intercompany CalendarIntercompany Calendar

Fully Configurable Approval RulesFully Configurable Approval Rules

Flexible Security ModelFlexible Security Model

Centrally defined Intercompany Centrally defined Intercompany AccountsAccounts

Online Online Reconciliation Reconciliation

ReportingReporting

XML XML Publisher Publisher ReportsReports

Advanced Global Intercompany SystemAddress the Top Barrier to a Fast Close

Subledger Subledger AccountingAccountingSubledger Subledger AccountingAccounting

DrDr CrCr

General General Ledger Ledger ReceivableReceivable

ssReceivableReceivable

ssPayablePayable

ssPayablePayable

ss

InterInterCompanyCompany

AGIS at WorkRebilling a Corporate Cost from an USA HQ

CaliforniaCompany

New YorkCompany

IllinoisCompany

ItalyCompany

FranceCompany

SubledgerSubledgerInvoices &Invoices &DocumentsDocuments

General General Ledger Ledger EntriesEntries

• GL Entries created for US subsidiaries

• AP and AR Invoices created for France and Italy


Banking Model

ThinkWork Manage

• Bank account is now associated with LE entity rather than Operating Unit

• Single bank account serves multiple Operating Units

• Any and all Operating Units associated with a ledger can be permitted to use the bank accountAssetsAssets

ProjectsProjectsReceivables

Receivables

PayablesPayablesPurchasing

Purchasing

Projects

Projects

Receivables

Receivables

PayablesPayables

InventoryInventory

PlusCentralized Credit Card Model

Credit Card EncryptionSupplier & Customer Banks in

TCA

Centralized BankingShared Services Disbursements

Work in Work in ProcessProcessWork in Work in ProcessProcess

LE

OU A OU B OU C

Bank Model: Example of What You Can DoPay invoices from different OUs with 1 instruction

OU A

OU B

OU CBank

Single Payment

Instruction

Invoices

Payments

Sub Ledger Sub Ledger AccountingAccountingSub Ledger Sub Ledger AccountingAccounting

• New Payments Module• New Bank Model

• New Bank & Credit Card Features

Banks

Legal EntityLegal Entity

Operating UnitsOperating Units


Sharing Services

ThinkWork Manage

Shared Service Infrastructure

(Serves Informal and Formal)Organizational AccessCross Org Processes

Banking ModelInter Unit Accounting

All Together: Easier To Share ServicesCentral processing, Distributed impact

SSCs(Formal)

SLAs & TaxInter-LE

Formal SSCsAt home or overseasCall Centers, OutsourcingOffshoring, SAS 70, On Demand

Informal Service SharingProcess EfficiencyDecentralized Depts.Centralized Depts..Normal BusinessPractice

Ledgers & Ledger SetsLedgers with

Balancing Segments MOAC across OUs

IntercompanyBank Model

Tax

Ledger and Ledger SetsSubledger Accounting

Intercompany, Tax Engine MOAC across LEs, BankInternal Controls Manager

• Work Globally• Global Order Desk• Global Procurement• Global Billing• Global Dunning

• Think Globally• Global Ledger Sets –

worldwide insight• Global Reporting

• Manage Globally• Global Accounting

Rules• Global Set-up• Global Integration

What the Architecture Gets You

Release 12 Subsidiary LEs….

…account for themselves in Ledgers, and…Ledger Set

Company CompanyCompany

ProjectsProjectsReceivablesReceivablesInventory

Inventory

Work in ProcessWork in Process

PurchasingPurchasing PayablesPayables

Multi-Multi-OrgOrg


Multi-Multi-OrgOrg


manage their subledger data in Operating Units

Share Services, maintain privacyExploit Cross-OU Processes

Yesterday: An LE Group in 1 SoB with 1 OU - no partitioning R12: Introduce partitioning

without sacrificing processes

AssetsAssets


Receivables

PayablesPayablesPurchasingPurchasing


Receivables

PayablesPayables

InventoryInventory

Work inProcessWork inProcess

Ledgers inLedger Sets,

New OUs

MOAC

InventoryInventory


AssetsAssets


Receivables

PayablesPayablesPurchasingPurchasing


Receivables

PayablesPayables

InventoryInventory


MOAC, +300 FeaturesMOAC, +300 Features

SLA,Tax

SLA,Tax

Ledger Sets,Ledgers

Ledger Sets,Ledgers

XML Publisher Reporting

XML Publisher Reporting

Profitability Mgr,EPBProfitability Mgr,EPB

SubledgerSubledger

Release 12: The Global Business Release

Work Globally, to be more competitive

Think Globally, to make the right decisions

Manage Globally, to lower cost and increase performance

DBI, FCHDBI, FCH

Intercompany, Bank, PaymentsIntercompany,

Bank, Payments

General Ledger

General Ledger

TransactionsTransactions

OICMOICM

TCA, LETCA, LE

National ComplianceLocal RegulationNational COALocal Calendar

Corp. ComplianceUS GAAP / IAS-IFRSCorp COACorp Calendar

$

Joint ComplianceUS GAAP / IAS-IFRSCorp COACorp CalendarA$+$

€

Parent ComplianceUS GAAP / IAS-IFRSCorp COACorp Calendar

€+$

+

AQ&Q U E S T I O N SQ U E S T I O N S