r12 Financials Rcd oracle

RELEASE CONTENT DOCUMENT Release 12 Financial Applications Prepared by Financials Product Management Team

Last Updated: 11 December 2006

Version: 30

Copyright © 2006 Oracle Corporation All Rights Reserved

R12 Release Content Document, Rev. 30 ii

Table of Contents

1. Disclaimer 1

2. Introduction 2 2.1. Purpose of Document 2

3. Release 12.0 Objectives 3

4. Oracle Financials Applications – Architectural and Closely-related Enhancements 6 4.1. Multi-Org Access 6

4.1.1. Overview 6 4.1.2. Features 6

4.1.2.1. Multi-Org Access Control 6 4.1.2.2. Multi-Org Security Profile Preferences 6 4.1.2.3. Enhanced Multi-Org Reporting 7 4.1.2.4. Multi-Org Integration with Accounting Setup Manager 7

4.2. Oracle Cash Management 8 4.2.1. Overview 8 4.2.2. Features 8

4.2.2.1. Bank Account Model 8 4.2.2.2. Multi-Org Access Control 8 4.2.2.3. Subledger Accounting 8 4.2.2.4. Bank Account Balances and Interest Calculation 9 4.2.2.5. Bank Account Transfers 9 4.2.2.6. Cash Pooling 9 4.2.2.7. Bank Statement Accounting 10 4.2.2.8. Bank Account Signing Authorities 11 4.2.2.9. Cash Positioning Intra-day Activities 11

4.3. Oracle General Ledger 12 4.3.1. Overview 12 4.3.2. Features 12

4.3.2.1. Accounting Setup 12 4.3.2.2. Improved Processing Efficiency 13 4.3.2.3. Data Security 14 4.3.2.4. Auditability 15 4.3.2.5. Others 16

4.3.3. Terminology 17 4.4. Oracle Subledger Accounting – New Product 19


4.4.2.1. Journal Entry Setups 19 4.4.2.2. Date Effective Application Accounting Definitions 20 4.4.2.3. Multiple Accounting Representations 20 4.4.2.4. Summarization Options 21 4.4.2.5. Draft Accounting 21

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4.4.2.6. Online Accounting 21 4.4.2.7. Replacement for Disabled Accounts 21 4.4.2.8. Process Category Accounting 21 4.4.2.9. Straight Through Accounting Processing 21 4.4.2.10. On-line inquiries 22 4.4.2.11. Journal Entry Sequencing 22 4.4.2.12. Third Party Merge Accounting 23 4.4.2.13. Manual Journal Entries 23 4.4.2.14. Third Party Control Accounts 23 4.4.2.15. Transaction Account Builder 23 4.4.2.16. Multi-period Accounting 23 4.4.2.17. Accrual Reversal Accounting 24 4.4.2.18. Business Flows 24 4.4.2.19. Accounted and Gain/Loss Amount Calculations 24 4.4.2.20. Application Accounting Definitions Loader 24 4.4.2.21. Errors Accounting and Reporting 24 4.4.2.22. Standard Reports 25 4.4.2.23. Enhanced Reporting Currency Functionality 25 4.4.2.24. Diagnostics Framework 25

4.4.3. Oracle Subledger Accounting Enhances the Functionality of the Global Accounting Engine 26 4.4.4. Terminology 27

4.5. Oracle Legal Entity Configurator 29 4.5.1. Overview 29 4.5.2. Features 29

4.5.2.1. Oracle Legal Entity Configurator 29 4.5.2.2. Legal Authorities and Jurisdiction 30 4.5.2.3. Legal Date Tracking and Auditing 30

4.5.3. Terminology 30 4.6. Oracle Advanced Global Intercompany System 32


4.6.2.1. Intercompany Balancing 32 4.6.2.2. Intercompany Invoicing 32 4.6.2.3. Intercompany Reconciliation 33 4.6.2.4. Manual Intercompany Transactions 33

4.6.3. Terminology 33 4.7. Oracle E-Business Tax – New Product 34


4.7.2.1. Configuration Options and Provider Service Subscriptions 34 4.7.2.2. Events and Configuration Owner Options 35 4.7.2.3. Tax Configuration Manager 35 4.7.2.4. Tax Determination Services 35 4.7.2.5. Centralized Tax Record Repository for Audit and Reporting 36 4.7.2.6. Tax Reporting 36 4.7.2.7. Tax Simulator 36 4.7.2.8. Guided Configuration 37 4.7.2.9. Additional Enhancements 37

4.7.3. Terminology 37 5. Oracle Financial Applications - Features and Enhancements 40 5.1. Oracle Advanced Collections 40


5.1.2.1. Multi-Org Access Control 40 5.1.2.2. Uptake of Cross-Operating Unit Initiative 40 5.1.2.3. Consolidation of Collections Functionality into Advanced Collections 40

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5.1.2.4. New Implementation Checklist and Setup Screens 41 5.1.2.5. Improved Payment Processing and Customer Funds Capture 41 5.1.2.6. Use of Oracle Territory Management to Define Collections Territory Hierarchy 41 5.1.2.7. AR ‘Collector’ Field and Extension to Territory Management 41 5.1.2.8. XML Publishing Technology for Collections Correspondence 42 5.1.2.9. Configurable Metrics 42 5.1.2.10. Aging-based Dunning Plans 42 5.1.2.11. Collections Best Practices 43 5.1.2.12. Filterable Bali Tables 43 5.1.2.13. Consolidated Collections with Lease Contracts or Loans 44 5.1.2.14. Search Tool Enhancements 44 5.1.2.15. Enhanced Scoring Capability 44 5.1.2.16. Automatic Strategy Changing 44

5.2. Oracle Assets 46 5.2.1. Overview 46 5.2.2. Features 46

5.2.2.1. Subledger Accounting 46 5.2.2.2. Enhanced Mass Additions Interface for Legacy Conversions 46 5.2.2.3. Automatic Preparation of Mass Additions 46 5.2.2.4. Enhanced functionality for Energy Industry 47 5.2.2.5. Flexible Reporting using XML Publisher 47 5.2.2.6. Automatic Depreciation Rollback 47 5.2.2.7. Enhanced Logging for Asset Transactions and Programs 48

5.3. Oracle Bill Presentment Architecture 49 5.3.1. Overview 49 5.3.2. Features 49

5.3.2.1. Balance Forward Bill Presentment 49 5.3.2.2. Enhanced Template Assignment 49 5.3.2.3. Attachment Printing 49 5.3.2.4. Legal Entity 49 5.3.2.5. Multi-Org Access Control 50

5.4. Oracle Credit Management 51 5.4.1. Overview 51 5.4.2. Features 51

5.4.2.1. Common Components for Leasing and Loan Applications 51 5.4.2.2. Enhancements to User-Defined Data in Credit Case Folders 51 5.4.2.3. Multi-Period Financial Data Comparison 51 5.4.2.4. Credit Scoring Model Enhancements 52 5.4.2.5. Credit Recommendation Enhancements 52 5.4.2.6. Credit Decision Appeals Processing 52 5.4.2.7. Dynamic Credit Analyst Assignments 52 5.4.2.8. Automatic Assessments of Guarantors 52

5.5. Oracle Enterprise Performance Foundation 54 5.5.1. Overview 54 5.5.2. Features 54

5.5.2.1. Oracle Release 12.0 Schema 54 5.5.2.2. Enhanced Oracle General Ledger Integration 54 5.5.2.3. Shared, Reformatted Ledger Data 54 5.5.2.4. Oracle Workflow Integration 55 5.5.2.5. Integration with Concurrent Manager 55 5.5.2.6. Oracle Warehouse Builder Integration with Interface Tables 55 5.5.2.7. Oracle Warehouse Builder Replaces Balance & Control 55 5.5.2.8. New User Interfaces 55 5.5.2.9. Security and System Administration 56 5.5.2.10. User Defined Signage Methodologies 57 5.5.2.11. Configurable Home Page 57 5.5.2.12. Tuning Options Administration User Interface 57

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5.5.2.13. Rule Migration, Import and Export 57 5.5.2.14. Multi-Dimensional Data Model 57 5.5.2.15. Dimension Member Attributes 58 5.5.2.16. Data Set Registration and Creation 58 5.5.2.17. Dataset Groups 59 5.5.2.18. Business Rule Definition and Management 59 5.5.2.19. Conditions 61 5.5.2.20. Data Inspector 61 5.5.2.21. Auditing and Data Integrity 61 5.5.2.22. Production Datasets 62 5.5.2.23. Process Locking 62 5.5.2.24. Rule Auditing 62 5.5.2.25. Effective Dating & Versioning 62 5.5.2.26. Seeded Reports 63 5.5.2.27. Integration with Web ADI 63 5.5.2.28. Functional Dimension Definition 63 5.5.2.29. Loader Rules 63 5.5.2.30. Client Data Table Loader Replacement Mode 63 5.5.2.31. Fact Table Dimension Member Error Report 63

5.5.3. Terminology 64 5.6. Oracle Enterprise Planning and Budgeting 68


5.6.2.1. Usability Enhancements 68 5.6.2.2. Scalability Enhancements 68

5.7. Oracle Financial Consolidation Hub – New Product 70 5.7.1. Overview 70 5.7.2. Features 70

5.7.2.1. Enterprise View 70 5.7.2.2. Unity of Statutory and Management Results 70 5.7.2.3. Consolidation Versatility 70 5.7.2.4. Entire Consolidation Cycle Monitored 71 5.7.2.5. Automated Workflow and Exception Handling 71 5.7.2.6. Dynamic Ownership Structures 71 5.7.2.7. Analytical Reporting Capabilities 71 5.7.2.8. Audit Entries from Every Stage of Consolidation 71 5.7.2.9. Accessibility of Complete Consolidation History 71 5.7.2.10. Best Practices Automated 71 5.7.2.11. Complex Calculations and Eliminations Handled 72 5.7.2.12. Global Consolidation Requirements Managed 72 5.7.2.13. Internal Controls Manager Integration 72 5.7.2.14. Excel Add-in and Oracle General Ledger Drilldown 72 5.7.2.15. Concurrent Programs for Reporting 73 5.7.2.16. Line Item Intercompany Maps 73

5.7.3. Terminology 73 5.8. Oracle Financials for Asia Pacific 74


5.8.2.1. Korean Withholding Tax 74 5.8.2.2. Taiwan Transaction Numbering 74 5.8.2.3. Asia Pacific Reports 74 5.8.2.4. Multi-Org Access Control 74 5.8.2.5. Legal Entity Architecture 74

5.9. Oracle Financials for EMEA 76 5.9.1. Overview 76 5.9.2. Features 76

5.9.2.1. EMEA VAT Reporting 76

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5.9.2.2. EMEA Country Specific Reports 76 5.10. Oracle Financials for India 77


5.10.2.1. CENVAT Rules 2004 Changes 77 5.10.2.2. Tax Deducted at Source (TDS) Thresholds 78 5.10.2.3. Value Added Tax (VAT) 78 5.10.2.4. DFF Elimination 79 5.10.2.5. Multi-Org Access Control 79 5.10.2.6. AP Invoice Lines 79 5.10.2.7. Subledger Accounting 79 5.10.2.8. OPM Inventory Convergence 80

5.10.3. Terminology 80 5.11. Oracle Financials for Latin America 81


5.11.2.1. General Ledger Inflation Adjustments 81 5.11.2.2. Receivables Latin Tax Engine 81 5.11.2.3. Latin America Extended Withholding 81 5.11.2.4. Brazil Receivables Bank Transfer 81 5.11.2.5. Latin America Reports 82 5.11.2.6. Multi-Org Access Control 82 5.11.2.7. Legal Entity Configurator 82

5.12. Oracle Financial Services Accounting Hub (FSAH) – New Product 83 5.12.1. Overview 83 5.12.2. Features 83

5.13. Oracle Internal Controls Manager 84 5.13.1. Overview 84 5.13.2. Features 84

5.13.2.1. External Auditor Ready Reporting 84 5.13.2.2. Export Search Results to Excel 84 5.13.2.3. DBI for Compliance 84 5.13.2.4. Segregation Of Duties: Concurrent programs in Constraint Definition 85 5.13.2.5. Segregation Of Duties: Constraints with incompatible sets 85 5.13.2.6. Segregation Of Duties: Re-validating constraints after corrective actions 86 5.13.2.7. Segregation Of Duties: Complaint Provisioning of User Accounts 86 5.13.2.8. Upload Recommended Settings 86 5.13.2.9. Application Controls Change History Reports 86 5.13.2.10. Application Control Overrides in Suppliers and Supplier Sites 86 5.13.2.11. Profile Option Change Tracking 86

5.14. Oracle Internet Expenses 87 5.14.1. Overview 87 5.14.2. Features 87

5.14.2.1. Expense Allocations 87 5.14.2.2. Global Per Diem and Mileage 88 5.14.2.3. Cash Advances Management 89 5.14.2.4. Bar Coding 89 5.14.2.5. Manager Approvals 89 5.14.2.6. Audit Management 90 5.14.2.7. Audit Automation 91 5.14.2.8. Receipts Management 91 5.14.2.9. Entertainment and Fringe Benefits Policy Compliance 91 5.14.2.10. Credit Cards 92 5.14.2.11. Expense Report-Level Descriptive Flexfields 92 5.14.2.12. Attachments 93 5.14.2.13. Expense Analysis and Reporting 93

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5.14.2.14. Ad Hoc Reporting 93 5.14.2.15. Terms and Agreements 93 5.14.2.16. Region-Based Confirmation Page Messages 93 5.14.2.17. Help Desk Support 94 5.14.2.18. Contact Us 94 5.14.2.19. Expense Report Export 94

5.15. Oracle iReceivables 95 5.15.1. Overview 95 5.15.2. Features 95

5.15.2.1. Oracle Trading Community Architecture 95 5.15.2.2. Oracle Payments 95 5.15.2.3. Multi-Org Access Control 95 5.15.2.4. Enhanced User Self Registration 96 5.15.2.5. Cross Customer Site Payments 96

5.16. Oracle Loans 97 5.16.1. Overview 97 5.16.2. Features 97

5.16.2.1. Loan Type and Product Configuration 97 5.16.2.2. Multiple Disbursements 97 5.16.2.3. Loan Portfolios, Graphs & Online Reporting 97 5.16.2.4. Sophisticated Credit Decisioning 98 5.16.2.5. Federal Budgetary Control 98 5.16.2.6. Floating Rate and Weekly Payment Frequency 98 5.16.2.7. Enhanced Payment Plans with Rules 98

5.17. Oracle Payables 99 5.17.1. Overview 99 5.17.2. Features 99

5.17.2.1. Legal Entity 99 5.17.2.2. Multi-Org Access Control 99 5.17.2.3. Representation of Suppliers in the Trading Community Architecture (TCA) 99 5.17.2.4. New User Interface for Supplier Entry and Maintenance 100 5.17.2.5. Introduction of Invoice Lines 100 5.17.2.6. Invoice Processing for Contract Financing, Retainage, and Progress Terms 101 5.17.2.7. Enhanced Invoice Approval Includes Line Level Approval 102 5.17.2.8. Non PO Invoices Entered via iSupplier Portal 102 5.17.2.9. Collaboration with Suppliers to Resolve Disputes 102 5.17.2.10. Oracle E-Business Disbursement Requests 102 5.17.2.11. Enhancements to Payment Banks, Branches, and Accounts 102 5.17.2.12. Payment Process Enhancements 103 5.17.2.13. Accounts Receivable / Accounts Payable Netting 103

5.18. Oracle Payments 104 5.18.1. Features 104

5.18.1.1. Advanced and Highly Configurable Formatting Framework 104 5.18.1.2. Flexible Validation Model 105 5.18.1.3. Secure Payment Data Repository 105 5.18.1.4. Improved Electronic Transmission Capability 106 5.18.1.5. Flexible Support for Various Business Payment Models 106

5.18.2. Funds Disbursement Features 106 5.18.2.1. Enhanced Disbursement Process 106 5.18.2.2. Enhanced Electronic Payment Processing 107 5.18.2.3. Configurability 107 5.18.2.4. Payment Processing User Interface 108 5.18.2.5. Enhanced Check Printing Process 108 5.18.2.6. Migration of Global Features to Central Engine 108 5.18.2.7. Consolidation of Payment Formats 109 5.18.2.8. Improved Remittance Advice Reporting 109

5.18.3. Funds Capture Features 109

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5.18.3.1. Enhanced Configurability 109 5.18.3.2. Improved Support for Credit Card Security Features 110 5.18.3.3. Enhanced Payment Processing User Interface 110 5.18.3.4. PINless Debit Card Transaction Support 110 5.18.3.5. Improved Payer Notification of Settlement 111 5.18.3.6. Direct Debit Enhancements 111 5.18.3.7. Improved Batch Settlement Performance 111

5.18.4. Terminology 111 5.19. Oracle Profitability Manager – New Product 113

5.19.1. Product Overview and Foundation 113 5.19.2. Release Overview 113 5.19.3. Features 114

5.19.3.1. Powerful Allocation System 114 5.19.3.2. Rule Sets 115 5.19.3.3. Transaction Costing 115 5.19.3.4. Multi-Dimensional Activities and Cost Objects 115 5.19.3.5. Activity Rates 115 5.19.3.6. Activity Cost Rollup 115 5.19.3.7. Mapping to Cost Objects 116 5.19.3.8. Bill and Cost Object Unit Cost 116 5.19.3.9. Cost Object Extended Costs and Cost Object Total Costs 116 5.19.3.10. Customer Profitability 117 5.19.3.11. Seeded Reports 117

5.19.4. Features Not Included 117 5.19.4.1. Common Features 117 5.19.4.2. Oracle Profitability Manager Features 118

5.20. Oracle Public Sector Budgeting 119 5.20.1. Overview 119 5.20.2. Features 119

5.20.2.1. Enhanced Position Default Rules 119 5.20.2.2. Configurable Position Worksheet Function Security 119 5.20.2.3. Posting Statistical Balance 120

5.21. Oracle Public Sector Financials 121 5.21.1. Overview 121 5.21.2. Features 121

5.21.2.1. Centralized and Configurable Accounting 121 5.21.2.2. Integrated Budgetary Control 121 5.21.2.3. Flexible Reporting and Inquiry 121

5.22. Oracle Receivables 122 5.22.1. Overview 122 5.22.2. Features 122

5.22.2.1. Revenue Management Enhancements 122 5.22.2.2. Line Level Cash Applications 123 5.22.2.3. Funds Capture Enhancements Uptake 123 5.22.2.4. Refunds Enhancements 123 5.22.2.5. Credit Card Error Handling 123 5.22.2.6. Credit Card Chargebacks 123 5.22.2.7. Deduction Management 123 5.22.2.8. Balance Forward Billing 124 5.22.2.9. Late Charges 124 5.22.2.10. Customer Standard User Interface Redesign 124 5.22.2.11. Multi-Org Access Control 124 5.22.2.12. E-Business Tax 125 5.22.2.13. Legal Entities 125 5.22.2.14. Subledger Accounting 125 5.22.2.15. Receivables Reconciliation Enhancements 125 5.22.2.16. Additional Bills Receivable Reference Field 126

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5.22.2.17. Collections Workbench Obsolescence 126 5.22.2.18. Bills of Exchange Obsolescence 126 5.22.2.19. Trade Accounting Obsolescence 126 5.22.2.20. AP/AR Netting 126 5.22.2.21. Golden Tax Adaptor for Mainland China 126

5.23. Oracle Transfer Pricing 128 5.23.1. Overview 128

5.23.1.1. Enhanced Multi-Currency Support 128 5.23.1.2. Single Assumption/Processing Dimension (Product Leaf) 128 5.23.1.3. Node Level Assumptions 129 5.23.1.4. Conditional Assumptions 129 5.23.1.5. Enhanced Ledger Migration Dimensionality 129 5.23.1.6. Cash Flow Edits Administration 129 5.23.1.7. Interest Rate Administration 130 5.23.1.8. Seeded Reports 130

5.24. Oracle Treasury 131 5.24.1. Overview 131 5.24.2. Features 131

5.24.2.1. Cash Pooling Across Legal Entities 131 5.24.2.2. Foreign Exchange Hedge Effectiveness and Accounting Under IAS 39 and FAS 133 131 5.24.2.3. Automatic Bond Rate Resetting 132 5.24.2.4. Bank Account Update Program 132 5.24.2.5. Inter-Account Transfer Enhancements 132 5.24.2.6. Bank Account Model 132 5.24.2.7. Bank Account Balances 132

5.24.3. Terminology 133 5.25. Oracle U.S. Federal Financials 134


5.25.2.1. Centralized and Configurable Accounting 134 5.25.2.2. Integrated Budgetary Control 134 5.25.2.3. Flexible Reporting and Inquiry 134

6. Daily Business Intelligence 135 6.1. Daily Business Intelligence (DBI) for Compliance 135


6.1.2.1. Financial Statement Certification Dashboard 135 6.1.2.2. Open Remedial Action Summary 136 6.1.2.3. Significant Account Evaluation Result 136 6.1.2.4. Significant Account Evaluation Summary 136 6.1.2.5. Organization Certification Result 137 6.1.2.6. Organization Certification Summary 137 6.1.2.7. Process Certification Result 137 6.1.2.8. Process Certification Summary 137 6.1.2.9. List Reports 137 6.1.2.10. Compliance Environment Change 137 6.1.2.11. View Significant Account Details 138 6.1.2.12. Manage Closing Performance Findings and Remediation 138 6.1.2.13. Drill and Pivot the Report Layout 138

6.2. Daily Business Intelligence for Financials 139 6.2.1. Overview 139 6.2.2. Features 139

6.2.2.1. Receivables and Collections Management 139 6.2.2.2. Profit and Loss Analysis 140 6.2.2.3. Expense Analysis 140

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6.2.2.4. DBI for Public Sector Financials 141 6.2.2.5. DBI for Payables 141 6.2.2.6. Budget/Forecast Import from General Ledger 142 6.2.2.7. Role Based Security for Profit & Loss and Expense Management Dashboards 142 6.2.2.8. User Defined Dimension 143 6.2.2.9. DBI for Financials Back-End Enhancements 143

6.3. Financials Intelligence 144 6.3.1. Overview 144

7. Customer Data Management 145 7.1. Customer Data Hub 145


7.1.2.1. Tax Geography Hierarchy Setup UIs 145 7.1.2.2. Multi-Org Access Control (MOAC) 145 7.1.2.3. Tax and Geography Validation 145 7.1.2.4. Data Quality Management Enhancements 146 7.1.2.5. Customer Data Librarian Enhancements 146 7.1.2.6. Integration Services 146 7.1.2.7. TCA Bulk Import Enhancements 147 7.1.2.8. New Workflow Synchronization 147

7.2. Customer Data Librarian 148 7.2.1. Overview 148 7.2.2. Features 148

7.2.2.1. Multi-Org Access Control (MOAC) 148 7.3. Customers Online 149


7.3.2.1. Multi-Org Access Control (MOAC) 149

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1. Disclaimer

This Release Content Document (RCD) describes product features that are proposed for the specified release of the Oracle E-Business Suite. This document describes new or changed functionality only. Existing functionality from prior releases is not described. It is intended solely to help you assess the business benefits of upgrading to Release 12.0 and planning for the implementation and upgrade of the product features described.

This document in any form, software or printed matter, contains proprietary information that is the exclusive property of Oracle. Your access to and use of this confidential material is subject to the terms and conditions of your Oracle Software License and Service Agreement, which has been executed and with with you agree to comply. This document and information contained herein may not be disclosed, copied, reproduced or distributed to anyone outside Oracle without prior written consent of Oracle. This document is not part of your license agreement nor can it be incorporated into any contractual agreement with Oracle or its subsidiaries or affiliates.

This document is for informational purposes only and is intended solely to assist you in planning for the implementation and upgrade of the product features described. 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 in this document remains at the sole discretion of Oracle.

Due to the nature of the product architecture, it may not be possible to safely include all features described in this document without risking significant destabilization of the code.


2. Introduction

2.1. Purpose of Document

The Release Content Document (RCD), produced as part of Oracle’s Applications Product Lifecycle (APL), communicates information about new or changed functionality in the specified release of the Oracle E-Business Suite. Existing functionality from prior point releases is not described. However, content introduced by Family Packs, Mini-packs or Standalone patches since the prior point release has been included in this document and denoted accordingly.

New features available with Oracle Financials Family Pack G or with any product level Mini-packs that have been released since the release of Oracle E-Business Suite 11i10 are included in this document and are denoted accordingly.


3. Release 12.0 Objectives

Release 12.0 is designed to increase the ease with which you understand and process your worldwide business and address compliance in every nation. It reflects the maturity of several initiatives designed to rationalize subledger bookkeeping, generalize transaction tax compliance and improve access to subledger data, with the intention of both facilitating subledger shared services and improving and standardizing throughput. Also in support of shared service ideals, we’ve revised our bank and disbursement models.

We’ve distinguished the data from the management of general ledgers, improved legal entity support and intercompany processing, and built a new row and column consolidation system, rich in financial management functions. These features are designed to expedite your regional and group control, lower your finance expenses, and speed decision making by centralizing the processing of dispersed data. Daily Business Intelligence is greatly expanded, and XML Publisher brings powerful report customization to the end-user’s desktop. Your decision-making requirements also drove radical improvements to our budgeting, profit management and activity analytics, which along with the new Financial Consolidation Hub are applications built on the shared Enterprise Performance Foundation.

In addition to these initiatives, we’ve included many more enhancements and new features to the E-Business Suite.

In Release 11i, a user assigned to an Operating Unit (OU) would process data from the products deployed in that OU. To process data for another OU, a user would log out of the first and into the second. The data generated in that OU would be accounted for according to rules generated by various product accounting engines, and posted to general ledger in ways appropriate for the different products, some generating part of the detail at different times in the process. General Ledger sets of books (SoB) were self-contained, reflecting the balances of the entity to which you’d assigned the SoB, and managed by users assigned to the SoB.

In Release 12.0, by contrast, users can be assigned to multiple operating units, and are supported by processes and transactions that can span operating units. Their data is book-kept according to rules stored in a single accounting engine, and the accounting is stored in subledger tables that are standard across all products. Complete accounting is maintained for every appropriate event, and all subledger entries are fully balanced and detailed. A single, common posting engine summarizes to your required level of detail, and posts to General Ledger. Sets of Books are replaced by the accounting entity’s ‘ledger’ for data, and its ‘Ledger Set’ for processing, from reporting, opening and closing, through allocations. Ledgers can be combined into ledger sets, and GL users are assigned to the ledger sets.

User access to multiple operating units is called ‘Multi-Org Access Control’, (MOAC). The new subledger accounting architecture is described in the Subledger Accounting (SLA) section. Ledgers, ledger sets and multiple ledgers are described in the General Ledger section.


Financial Management Information Architecture Release 12

Ledgers and Ledger Sets –Lower Cost, Better Data

Ledgers and Ledger Sets –Lower Cost, Better DataCentralized Accounting

Rules and EntriesCentralized Accounting

Rules and Entries

• Data Segmentation AND Processing Efficiencies

• Fewer Responsibilities

Ledger and Ledger Ledger and Ledger Sets Sets

Feeder SystemsFeeder Feeder

SystemsSystems

Subledger AccountingSubledger Subledger

AccountingAccounting

DrDr CrCr

AssetsAssetsAssets

ProjectsProjectsProjects

Work inProcessWork inWork inProcessProcess

ReceivablesReceivablesReceivablesInventoryInventoryInventory

PayablesPayablesPayablesPurchasingPurchasingPurchasingOperating Units with Operating Units with

MOACMOAC

1 Responsibility1 Responsibility

1 Responsibility1 Responsibility

Enterprise Performance Foundation

Enterprise Performance Foundation

Planning & BudgetingPlanning & Planning & BudgetingBudgeting

ConsolidationConsolidationConsolidation

ScorecardScorecardScorecard

Profitability Analysis

Profitability Profitability AnalysisAnalysis

We’re sure you will derive many benefits from the new architecture. The SLA approach to subledger accounting brings an immediate improvement in subledger to general ledger reconciliation, for example, before you take any steps to exploit the features.

Accounting for subledger transactions at the event in a standard manner with a single accounting engine allows us to provide multiple accounting representations for a single event. A purchase can be simultaneously accounted for an increment to inventory for your US GAAP or IAS/IFRS accounting, and as a debit to the P&L for your national compliance accounting. The accounting entity involved can maintain multiple ledgers, each complying with a different set of accounting principles – we call them ‘accounting methods’, and, of course, the transactions and ledgers can be valued and denominated in different currencies; indeed, you can now generate currency views of a ledger at the subledger transaction, general ledger transaction, general ledger balance, or consolidation workplace levels, whether you use IAS 21 or FAS 52 Translation or Remeasurement conversion methods.

Combining ledgers into sets will be attractive not only in nations where you might have many ledgers serving regulated registered companies, but also across continental regions where locally managed statutory ledgers are echoed automatically by centrally managed single currency corporate ledgers at the parent’s management style or GAAP, whether that be IAS/IFRS, Japan, China, or US GAAP.

Our new transaction tax engine is nexus driven; that is, it looks to the appropriate transaction data to figure the authority and taxes involved. This allows a shared service center to more easily process VAT and sales taxes accurately for its clients, no matter what country they might be in. Equally, the new bank account and disbursement models facilitate the payment of invoices and other payables


out of different operating units, from an appropriate bank account, and with the appropriate intercompany handling.

Intercompany processing is dramatically revised by enhancements in both Financial’s intercompany management and Supply Chain Management’s Enhanced Drop Shipments. Rather than a GL only system, Financials now links into Receivables and Payables to generate matching and tied documents (configurable though Bill Presentment) and a new reconciliation scheme. Related SCM products, discussed in the SCM RCD, provide transfer pricing modeling and enforcement, inventory consignment (at subsidiaries or otherwise), and tracking of profit in inventory. All feed back to General ledger and the Financial Consolidation Hub for elimination.

Underlying many of the improvements in transaction tax, intercompany, and shared service capabilities is a reinforced legal entity model, more closely aligned, we hope, with your actual legal structure.

We’ve striven to keep your upgrade path straightforward. After upgrading to Release 12, your installation should behave as it did on Release 11i. What was in a Set of Books will be in a Ledger with its own Ledger Set. SLA will return the same accounting as the earlier accounting engine did. Operating Units will still ‘stripe’ your transaction data. You’ll see immediate benefits in subledger accounting, XML publishing applied to reports, additional DBI portlets and pages, and many other features like AR-AP netting, gross margin analytics in AR, and so on.

You can then exploit the new features at your own pace. Start by assigning several OUs to individual users, or by combining several ledgers into one ledger set. Later explore revising accounting rules with the SLA engine, or tackling a complex tax situation with the tax engine. Pretty soon, you’ll be thinking of simplifying the processes, eliminating Sarbanes-Oxley or Eight Directive problem areas, and shifting into top gear.


4. Oracle Financials Applications – Architectural and Closely-related Enhancements

4.1. Multi-Org Access

4.1.1. Overview

A Shared Services model of operations drives cost savings and increases information quality. In an effort to focus business units on their core competencies, increase efficiencies company-wide, and better manage and access information, companies consolidate non-revenue generating, administrative tasks in Shared Service Centers. Eliminating redundant processes, continuously lowering the unit costs per transaction through self-service, automating processes, and standardizing common business practices reduces costs. By centralizing information through a Shared Service Center, a consolidated view of essential decision-making information is available and accessible globally. Standardization of common business practices also adds to the timeliness and accuracy of data. With consistent business processes throughout the enterprise, information can be gathered uniformly, with consistent quality.

Services can be shared at many different levels, and shared service centers can exist for different reasons. For example, many Oracle customers have created Shared Service Order desks, Shared Service Reporting Centers, Shared Service General Ledger Centers, Shared Service Disbursement Centers, Shared Service Inventory Management Centers, Shared Service Procurement Centers and so on. Many of these centers may be combined as one center.

This chapter discusses release content facilitating sharing services in subledger products. Various products exploit these features to provide powerful cross organization processes, and exploit the intercompany features to supply the mandatory and appropriate interorganization accounting.

4.1.2. Features

4.1.2.1. Multi-Org Access Control

Multi-Org Access Control enables companies that have implemented a Shared Services operating model to efficiently process business transactions by allowing them to access, process, and report on data for an unlimited number of operating units within a single applications responsibility. This increases the productivity of Shared Service Centers, as users and processes no longer have to switch applications responsibilities when processing transactions for multiple operating units at a time. Data security and access privileges are still maintained using security profiles that now support a list of operating units.

4.1.2.2. Multi-Org Security Profile Preferences

A Multi-Org Security Profile defines the list of operating units to which a user has access. If a user typically uses a subset of the operating units in his security


profile, he may set up Preferences to limit the operating units available to him during transaction processing. The user can also set a default ‘operating unit’ to minimize manual data entry when an operating unit context is required.

4.1.2.3. Enhanced Multi-Org Reporting

Consistent with the Multi-Org Access Control feature, users are able to run reports using two levels:

• Ledger: The report runs for all operating units within a ledger to which the user has access

• Operating Unit: The report runs for a selected operating unit that belongs to the user’s security profile

4.1.2.4. Multi-Org Integration with Accounting Setup Manager

The Accounting Setup Manager is a central location to define your accounting-related setup across all financial applications. Here, you can define your legal entities and their accounting context, which includes the ledgers that will contain the accounting data for each legal entity. Multi-Org is integrated into the Accounting Setup Manager such that users can define operating units and their relationship to ledgers. For each operating unit, users can also select a legal entity to provide a default legal context during transaction processing. This centralizes your setup and makes it easier to inquire on and maintain relationships between ledgers, legal entities, and operating units.


4.2. Oracle Cash Management

4.2.1. Overview

Oracle Cash Management is an enterprise-wide solution for managing liquidity and controlling cash.

4.2.2. Features

4.2.2.1. Bank Account Model

Shared Service approaches to disbursement and collections are enhanced by the deployment of Oracle Cash Management’s new Bank Account model.

Overall, the set up, maintenance, and control of all internal bank account information is much easier and more reliable with this new feature. It provides a single access point for defining and managing internal bank accounts for Oracle Payables, Oracle Receivables, Oracle Payroll, Oracle Cash Management, and Oracle Treasury. Bank account access for each application is explicit for internal security and control purposes. Each account is associated with a Bank and Bank Branch defined in Oracle’s common Trading Community Architecture (TCA).

A single Legal Entity is granted ownership of each internal bank account. One or more Organizations are granted usage rights, which provides significant benefits in key areas like reconciliation that previously required managing multiple account records for these types of purposes. Additionally, reconciliation options can now be defined at the bank account level, providing even more flexibility and control of that process.


Multi-Org Access Control enables companies that have implemented a Shared Services operating model to efficiently process business transactions by allowing them to access, process, and report on data for an unlimited number of operating units within a single applications responsibility. This increases the productivity of Shared Service Centers for users no longer have to switch applications responsibilities when processing transactions for multiple operating units at a time. Data security is still maintained using security profiles that are defined for a list of operating units and determine the data access privileges for a user.

Support for Shared Services, and related Multi-Org Access Control features, is available in Oracle Cash Management. This set of features greatly enhances processing and reporting efficiency for Oracle Cash Management users. Please, refer to the full feature descriptions in the Multi-Org Access section of this document for more details.

4.2.2.3. Subledger Accounting

Oracle Subledger Accounting provides tools that allow users to meet External Reporting (IAS.IFRs, US GAAP, etc.), corporate management, and national fiscal accounting requirements. With a flexible tool called Accounting Methods Builder, users can determine the accounts, lines, descriptions, summarization,


and dates of their journal entries. Users can also add detailed transaction information to journal headers and lines. Detailed subledger accounting journals are available for analytics, auditing, and reporting. They are summarized, transferred, imported and posted to Oracle General Ledger. For more details, please see the Oracle Subledger Accounting section of this document.

Oracle Cash Management utilizes Oracle Subledger Accounting for setting up accounting rules and for generating journal entries related to Cash Management transactions.

4.2.2.4. Bank Account Balances and Interest Calculation

Many new bank account balance types are supported for all internal bank accounts including ledger, available, value dated, 1-day float, 2-day float, and projected balances. Users are able to track closing ledger and available balances as well as month-to-date and year-to-date averages. Flexible reporting tools are available to view all this centrally stored balance history for trend analysis as well as to compare actual versus expected balances based on daily cash position projections. Additionally, the system allows the user to verify interest amounts charged or credited by their banks based on balance history and user-defined interest rate schedules.

4.2.2.5. Bank Account Transfers

Bank Account Transfer functionality was previously supported only through Oracle Treasury. Now, bank account transfers are supported directly in Oracle Cash Management. This feature allows users to create these types of cash transfers between internal bank accounts manually or automatically through physical cash pools. The related cash flows are stored in Oracle Cash Management for reporting purposes and are reflected in positioning. Payment processing and accounting is managed via Oracle Payments and Oracle Subledger Accounting.

4.2.2.6. Cash Pooling

Organizations frequently use cash pooling techniques to optimize funds by consolidating bank balances from across multiple bank accounts. By consolidating balances and minimizing idle funds, organizations may decrease external borrowing costs and increase overall investment returns.

Oracle Cash Management supports common cash pooling techniques by allowing users to group bank accounts into different types of pooling structures and by managing the associated activity for either centralized or decentralized business environments. This functionality was originally made available to Oracle Treasury users in Oracle Financials Family Pack G and will now be supported via Oracle Cash Management. The following types of cash pools are supported.

4.2.2.6.1. Self-Initiated Physical Cash Pools Organizations may choose to monitor individual bank account balances manually and then physically move cash to or from their accounts only as needed based on their particular preferences or objectives.


Oracle Cash Management allows users to define and manage these types of bank account structures called Self-Initiated Physical Cash Pools. These pool definitions include rules to automatically determine when bank account transfers should be made and for what amounts. Users are able to review transfer proposals from their Cash Positions based on daily activity as well as target balances, minimum transfer amounts, and rounding rules. Users are able to accept or overwrite system proposed transfers, and Oracle Cash Management then generates all their bank account transfers automatically.

Note: Cash Pools spanning multiple legal entities often require tracking internal loans and interest, or In House Banking. Related functionality is available for Oracle Treasury users and is described in the Oracle Treasury section of this document.

4.2.2.6.2. Bank-Initiated Physical Cash Pools, or Zero Balance Accounts (ZBA’s) Organizations may choose to utilize a bank service that automatically sweeps all end-of-day balances to or from main concentration accounts. Since this type of physical cash pool arrangement typically leaves no cash in the sub accounts overnight, it is often referred to as a Zero Balance Account or ZBA relationship.

Oracle Cash Management allows users to define and manage these types of bank account structures called Bank-Initiated Physical Cash Pools. Oracle Cash Management automatically creates and reconciles all the related sweep transactions based on reported prior-day bank statement activity.

Note: Cash Pools spanning multiple legal entities often require tracking internal loans and interest, or In House Banking. Related functionality will be available for Oracle Treasury users and is described in the Oracle Treasury section of this document.

4.2.2.6.3. Notional Cash Pools Organizations may choose to utilize notional cash pool arrangements offered by banks that track not only individual account balances but also the net balance across all accounts. This technique is common in some countries and does not require physical cash transfers to be made between accounts for concentration purposes.

Oracle Cash Management allows users to define and manage these types of bank account structures called Notional Cash Pools. The consolidated notional account balance is calculated, and users are able to manage the net notional balance along with individual bank accounts in Oracle Cash Management.

4.2.2.7. Bank Statement Accounting

This feature allows users to define mapping rules that can automatically create and reconcile transactions in Oracle Cash Management based on reported prior-day bank statement lines. Users are able to define flexible matching rules based on bank accounts, transaction codes, and text search strings. This feature significantly reduces reconciliation issues associated with repetitive first notice items like bank fees or bank account interest. The transactions generated and stored in Oracle Cash Management are available for reporting as well as for


automatic reconciliation. Accounting for these transactions is managed via Oracle Subledger Accounting.

This feature was first released in Oracle Financials Family Pack G.

4.2.2.8. Bank Account Signing Authorities

This feature allows Oracle Cash Management users to enter, maintain, and report on those people in their organizations with bank account signing authority. Users are able to indicate single and joint signing limits for each bank account as well as signer group categories, effective dates, approval status, and other relevant information. Users are also allowed to attach electronic copies of documents like passport photos, signature files, or bank documents directly to the signing authority records. It is possible to use Oracle Workflow to route approval requests for signing authority, or users can set statuses manually. Reporting used for internal control and audit purposes is available via an Oracle Discoverer view. People with signing authority need to be defined in Oracle HRMS or via HR Foundation, if Oracle HRMS is not installed.


4.2.2.9. Cash Positioning Intra-day Activities

This feature provides additional flexibility in how users view intra-day bank statement activity in their cash positions. It is possible to include all or portions of intra-day bank statement activity in the cash position, and these cash flows are used when calculating projected closing balances. Alternatively, the set up for cash positions still allows users to exclude the intra-day bank statement activity entirely or to include it for reference purposes against expected activity from other sources (but not include intra-day bank statement activity in the calculation of closing projected balances).



4.3. Oracle General Ledger

4.3.1. Overview

Oracle General Ledger delivers extraordinary enhancements in this release so you can maximize accounting process efficiencies across your enterprise while still achieving a high level of information and setup security. Fundamental improvements in Oracle General Ledger enable you to perform simultaneous accounting for multiple reporting requirements and allow superusers to access and process data for multiple ledgers and legal entities at the same time powering ledger and reporting shared services. For those users who should have more limited access, you can secure both information and setup definitions, like MassAllocations and FSG reports, so they can only view, update, or execute those processes to which they have access. You are able to achieve a high level of efficiency and security, without having to sacrifice one for the other, with these new enhancements in Oracle General Ledger.

4.3.2. Features

4.3.2.1. Accounting Setup

4.3.2.1.1. Simultaneous Accounting for Multiple Reporting Requirements Companies that are global in nature and that have operations in different localities often have multiple reporting requirements. These companies and their subsidiaries often need to satisfy the accounting and reporting requirements for each country as well as those of the parent company. This involves performing accounting in accordance with accounting principles and standards of multiple countries and in different currencies, charts of accounts, and/or calendars. The reporting requirements can also be statutory in nature, and one subsidiary may even need to satisfy multiple sets of statutory requirements. Oracle General Ledger simplifies the simultaneous management of the accounting for all of these different reporting requirements in this latest release. You are able to define your legal entities and the setup needed to address each accounting and reporting requirement using the Accounting Setup Manager. New enhancements and integration with Subledger Accounting enable Oracle General Ledger to perform accounting for all reporting requirements of a legal entity simultaneously.

4.3.2.1.2. Centralized Accounting Setup The Accounting Setup Manager is a central location to define your accounting-related setup across all financial applications. Here you can define your legal entities and their accounting context, which includes the ledgers* that contain the accounting data for each legal entity. If a legal entity has multiple reporting requirements, you can include additional reporting currencies or ledgers in the accounting context to satisfy the additional requirements.

4.3.2.1.3. Enhanced Reporting Currency Functionality Multiple Reporting Currencies functionality is enhanced to support all journal sources. Reporting sets of books are now simply reporting currencies. Every journal that is posted in the primary currency of a ledger


can be automatically converted into one or more reporting currencies. This conversion can be performed by Subledger Accounting, to convert all subledger journal entries, or by General Ledger, to convert more summarized General Ledger journals. You can choose to convert any journal sources and categories.

4.3.2.2. Improved Processing Efficiency

4.3.2.2.1. Simultaneous Data Access to Multiple Legal Entities and Ledgers You can access multiple legal entities and ledgers when you log into Oracle General Ledger using a single responsibility. This improves processing efficiency by reducing the need to switch between responsibilities when trying to access data for different ledgers or legal entities.

4.3.2.2.2. Simultaneous Opening and Closing of Periods for Multiple Ledgers The Open and Close Periods Programs has multiple enhancements. You are able to run any of the Open and Close Periods Programs from the Concurrent Manager. This allows you to take advantage of scheduling and request set capabilities for greater processing efficiency. Also, if you manage multiple ledgers, you can open or close periods for multiple ledgers simultaneously. You can even keep the status of periods across multiple ledgers in synch with new programs that ensure a specific period is Open or Closed for all of the ledgers you manage.

4.3.2.2.3. Cross-Ledger and Foreign Currency Allocations You are able to allocate financial data from one or more ledgers to a different target ledger. This enables you to perform cross-ledger allocations, which is useful for purposes such as allocating corporate or regional expenses to local subsidiaries when each entity has its own ledger. This is possible even if the target ledger is in a different currency than the source ledger(s) because you can create allocations in foreign currencies. Foreign currency allocations are also useful within a single ledger if you need to allocate amounts to a currency that is different from the primary currency of a ledger.

4.3.2.2.4. Simultaneous Currency Translation of Multiple Ledgers If you manage multiple ledgers, you can run the Translation program for multiple ledgers simultaneously.

4.3.2.2.5. Financial Reporting Across Ledgers You are able to run Financial Statement Generator (FSG) reports for multiple ledgers simultaneously. This is useful if you manage multiple ledgers and want to run a balance sheet or income statement report for all of your ledgers at the same time. You can also create an FSG report that includes data from multiple ledgers in a single report; the data in each ledger can be displayed in a separate row or column, or data from multiple ledgers can be aggregated into a single row or column. This is useful for reports such as consolidating financial statements that display data for each subsidiary in separate columns, as well as aggregated data in a total column.

4.3.2.2.6. Automatic Journal Copy


You are able to automatically copy an existing journal batch to create a new journal batch with the same journals and journal lines. This reduces the amount of work you need to do to re-create a journal that has already been defined. During the copying process, you have the option to change the period and effective date of the journal batch.

4.3.2.2.7. Streamline Automatic Posting AutoPost Criteria can be shared across ledgers that have the same chart of accounts and calendar. This dramatically reduces the number of AutoPost Criteria sets you need to define. Furthermore, you can automatically post journals across multiple ledgers simultaneously.

4.3.2.2.8. Streamline AutoReversal Criteria Setup AutoReversal Criteria can be shared across ledgers. This dramatically reduces the number of AutoReversal Criteria sets you need to define.

4.3.2.2.9. Streamline Consolidation Mappings You are able to define Chart of Accounts Mappings (formerly known as Consolidation Mappings) between two charts of accounts. Therefore, if you have multiple Consolidation Definitions for parent and subsidiary ledgers that share the same chart of accounts pair, and their mapping rules are the same, you only have to define a single Chart of Accounts Mapping. This significantly reduces the number of mappings you need to define if your Consolidation Definitions involve the same pair of charts of accounts and the mapping rules are the same.

4.3.2.2.10. Replacement for Disabled Accounts When an account is disabled, you can prevent transactions that include the account from erroring during journal import by defining a replacement account for the disabled account. Journal import replaces the disabled account with the replacement account and continue the journal import process if the replacement account is valid. This improves processing efficiency by preventing the journal import process from erroring and enabling the successful creation of the journal with minimal user intervention when an account has been disabled.

4.3.2.3. Data Security

4.3.2.3.1. Data Security across Legal Entities and Ledgers In this release, since you can access multiple legal entities and ledgers when you log into Oracle General Ledger using a single responsibility, Oracle General Ledger provides you with flexible ways to secure your data by legal entity, ledger, or even balancing segment values or management segment values. You are able to control whether a user can only view data, or whether they can also enter and modify data for a legal entity, ledger, balancing segment value or management segment value.

4.3.2.3.2. Management Reporting Security You can designate any segment (except the natural account segment) of your chart of accounts to be your management segment and use Oracle General Ledger’s security model to secure the management segment for reporting and entry of management adjustments.


4.3.2.3.3. Prevent Reversal of Journals with Frozen Sources Journals with frozen journal sources are prevented from being reversed to streamline the reconciliation of data from Subledger Accounting sources.

4.3.2.3.4. Prevent Reversal of Unposted Journals Users are no longer allowed to reverse ‘Unposted’ journals.

4.3.2.3.5. Control Accounts You are able to control data entry to an account by ensuring it only contains data from a specified journal source and to prevent users from entering data for the account either in other journal sources or manually within general ledger.

4.3.2.3.6. Definition and Setup Security You can secure your setup and definitions by granting specific privileges to users to view, modify, and/or execute a definition. This enables you to control which of your users can view a definition, but not modify or execute it, or execute a definition without modifying it, or vice versa. For example, since MassAllocations and Financial Statement Generator components are sharable across ledgers that have the same chart of accounts, you can secure these definitions so that some users cannot view or modify the definitions created by other users. Following is a list of definitions that have this security available:

• MassAllocation and MassBudget Formulas • FSG Reports and Components • Accounting Calendars • Transaction Calendars • AutoPost Criteria Sets • AuoReversal Criteria Sets • Budget Organizations • Chart of Accounts Mappings • Consolidation Definitions • Consolidation Sets • Elimination Sets • Ledger Sets • Recurring Journals and Budget Formulas • Rate Types • Revaluations

4.3.2.4. Auditability

4.3.2.4.1. Accounting and Reporting Sequencing Sequential numbering of accounting entries is a strong business requirement in many countries in Europe, Asia Pacific and Latin America and is used by fiscal authorities to check the completeness of a company’s accounting records. You can assign sequence numbers to journals during the posting process to ensure that finalized journal entries are properly sequenced. Separately, you can also assign a sequence number to journals when a period is closed to sequence journals for reporting purposes.


4.3.2.4.2. Journal Line Reconciliation The ‘GL Entry Reconciliation’ feature within Oracle Financials Common Country features is part of Oracle General Ledger and renamed ‘Journal Line Reconciliation’. This feature enables you to reconcile journal lines that should net to zero. This is often done to reconcile suspense accounts, or in countries like Norway, Germany, or France, it is used to audit or reconcile payroll and tax payable accounts, or to verify the open balances of specific accounts at the end of the period.

4.3.2.5. Others

4.3.2.5.1. Entered Currency Reporting and Analysis Oracle General Ledger tracks the balances that are entered in your ledger’s primary currency. This enables customers to perform currency analysis on amounts that are entered in the ledger’s primary currency for the purposes of currency valuation and hedging.

4.3.2.5.2. Foreign Currency Recurring Journals You can use Recurring Journals to create foreign currency journals. This enables you to pre-define journals that are recurring in nature and that are in foreign currencies and simply generate them when you need them. For example, a subsidiary (with a different primary currency than its parent company) that has borrowed money from its parent company can generate a recurring monthly interest payable entry to the parent company in the parent’s currency.

4.3.2.5.3. Intercompany Balancing Support for Encumbrances Intercompany encumbrance journals are automatically balanced during journal posting.

4.3.2.5.4. New iSetup API’s Oracle General Ledger adds the following iSetup API’s to enable you to quickly create your setup data and definitions:

• Ledger Sets • Data Access Sets

4.3.2.5.5. Integration with Subledger Accounting Oracle Subledger Accounting provides tools that allow users to meet multi-gaap, corporate, and fiscal accounting requirements. With a flexible tool called Accounting Methods Builder, users can determine the accounts, lines, descriptions, summarization, and dates of their journal entries. Users can also add detailed transaction information to journal headers and lines. Detailed subledger accounting journals are available for analytics, auditing, and reporting. They are summarized, transferred, imported and posted to Oracle General Ledger.

Oracle General Ledger’s integration with Subledger Accounting provides a unified process to post data to general ledger from Oracle subledgers and external feeder systems. Also, it provides a consistent view when drilling down from general ledger balances to subledger transactions. Please refer to


the Oracle Subledger Accounting section of this document for more information.

4.3.2.5.6. Enhanced Intercompany The Global Intercompany System (GIS) feature from previous releases has been incorporated into the Oracle Advanced Intercompany System product. Please refer to the Oracle Advanced Global Intercompany System section of this document for more information.

4.3.2.5.7. Account Analysis and Drilldown Account Analysis & Drilldown is a new web-based interface that allows you to easily review and analyze your general ledger financial data. You can view the balances of multiple detail or summary accounts in a single page and drill down to supporting journal entries and subledger transactions all within a browser window. You can control the display of your data by choosing from various layouts, specifying your sort criteria, or defining filters to only retrieve balances that meet your specific conditions. After fine-tuning your personal search criteria, you can even save the search criteria for future use. These features give you immediate access to your live general ledger data so that you have the information you need to make better business decisions.

Note: This feature was first released in Oracle Financials Family Pack G.

4.3.2.5.8. GL Standard Reports Integration With XML Publisher Oracle General Ledger’s Account Analysis, General Journals and Trial Balance standard reports are now integrated with XML Publisher. Using XML Publisher allows you to leverage the formatting features of a word processing application to design the layout of your report. You can personalize your report by changing fonts, adding images, inserting headers and footers, creating borders, changing column widths, and reordering/ adding/deleting columns. This enables you to create professional-quality reports directly from the general ledger, which ensures the integrity and auditability of the information. For more information on all formatting features, please refer to the XML Publisher User Guide.

Note: This feature was first released in Oracle Financials Family Pack G.

4.3.3. Terminology

Term Definition

Ledger Defined in Oracle General Ledger, one or more legal or business entities that share a common chart of accounts, calendar, currency, and accounting method. Ledgers replace set of books in Release 12.0.

Ldger sets A group of ledgers that share the same chart of accounts, calendar, and period type. In Oracle General Ledger, they enable you to perform certain operations for multiple ledgers at the same time, i.e. opening periods and running reports.

Set of books Set of books is converted to a ledger in Release 12.0. See


Term Definition

ledger.


4.4. Oracle Subledger Accounting – New Product

4.4.1. Overview

Oracle Subledger Accounting is a new product in this release.

Oracle Subledger Accounting enables corporations to comply with corporate, local and managerial accounting and audit requirements via increased control, visibility and efficiency.

Oracle Subledger Accounting increases control by storing a complete and balanced journal entry for each subledger transaction and GL date. Detailed drilldown and audit information is captured for each journal entry line. By storing journal entries in a common data model, Oracle Subledger Accounting constitutes a single source of truth for all accounting, reconciliation and analytical reporting. As Oracle Subledger Accounting stores the articulated balance sheet side of every entry and cross references it to the business transaction’s evidentiary document, reconciliation from General Ledger through Subledgers to the documents and from there to the business transactions is greatly simplified.

Oracle Subledger Accounting facilitates exercising internal control and policy by implementing accounting rules you define. The rules refer to system data from many sources, and can be tailored very finely by document type and document line.

Oracle Subledger Accounting streamlines the close by providing a common posting engine, so that all subledger products and non-Oracle products can transfer controlled and summarized data to the General Ledger using a standard methodology and auditable, reviewable process.

Oracle Subledger Accounting improves efficiency by speeding period close, simplifying business and regulatory changes and making acquisitions easier.

Oracle Subledger Accounting increases management visibility by supporting multiple parallel accounting representations. Corporate accounting policies can be defined and implemented globally; free from limitations imposed by local fiscal reporting requirements. Oracle Subledger Accounting allows accounting policies to be created once and deployed many times. Minimization of maintenance and elimination of duplication makes accounting policies easier to implement, maintain and hence, control. Subledger accounting enables business users to control all aspects of journal entries including debits and credits; accounting flexfields, descriptions and GL date

4.4.2. Features

4.4.2.1. Journal Entry Setups

Oracle Subledger Accounting gives users control over the definition of their journal entries.


Users are able to define the following components of journal entries:

• GL Dates • Entry Descriptions • Line Descriptions • Amounts (accounted and gain/loss) • Accounts: rules can be created for either the entire account combination or

for individual segments based upon constants or from transaction information • Journal Lines: side, summarization, type • Reconciliation References

The definition of these components can be based upon information from subledger applications such as transaction or setup values. Conditions may be used to determine how and when many of these components are used, and to create defaults. Setups can be quickly copied and altered to modify seeded definitions. Multi-language support is available for journal entry descriptions.

For each setup, Oracle Subledger Accounting stores information to determine whether it was seeded or completed by the user allowing customers to take advantage of upgrades without worrying about overwriting their customized setups.

4.4.2.2. Date Effective Application Accounting Definitions

Oracle Subledger Accounting allows users to group a consistent set of journal entry setups used in generating accounting for the transactions of an application. These are called application accounting definitions. For example, a user can create an application accounting definition that consists of setups to provide a U.S. GAAP representation of their inventory accounting.

Because accounting requirements change over time, Oracle Subledger Accounting provides the ability to enter date ranges for application accounting definitions. Multiple application accounting definitions can be created for each product with different date ranges. New definitions can be tested and implemented in advance of required changes and scheduled to automatically take effect on a chosen date. The setups related to an application accounting definition can be locked to prevent changes.

4.4.2.3. Multiple Accounting Representations

Oracle Subledger Accounting offers the ability for users to create multiple accounting representations for the same subledger transactions each to be stored in a separate ledger. These can be used to meet mutually exclusive accounting requirements.

For example, a customer may need to use a fiscally mandated chart of accounts and at the same time create a corporate representation using a management chart of accounts. Any of the Oracle Subledger Accounting journal entry setups can vary by representation.


4.4.2.4. Summarization Options

For each ledger, customers can decide, by application, whether they would like to summarize their journal entries. If they would like to summarize, they can do it either by GL Date, or by GL Period.

4.4.2.5. Draft Accounting

When users create accounting they can elect to use draft mode. This allows them to view and report on the accounting without saving it. They can change Oracle Subledger Accounting setups or transaction data if they are dissatisfied with the accounting for any reason. The accounting can be recreated as final, and any changes in setups or data will be used to derive the final accounting.

Draft accounting may be used in an unlimited manner for each journal entry allowing iterative corrections before committing the accounting as final. This minimizes the need for correcting journal entries and facilitates a clean audit.

4.4.2.6. Online Accounting

Users have the ability to immediately create, view, transfer and post accounting in General Ledger when entering transactions into Oracle subledger applications such as Oracle Payables and Oracle Receivables.

Oracle Subledger Accounting uses the same accounting rules and validations for both the offline and online accounting. Users can create the accounting online in draft mode, which allows them to preview accounting online, and to make adjustments before accounting in final mode.

4.4.2.7. Replacement for Disabled Accounts

When an account is disabled, users can continue creating accounting for transactions that include the account, without erroring. Oracle Subledger Accounting replaces the disabled account with the replacement account and continues processing. This improves processing efficiency by enabling the successful creation of journal entries with minimal user intervention if an account has been disabled.

Oracle Subledger Accounting stores substituted disabled accounts on subledger journal lines for audit and reconciliation purposes.

4.4.2.8. Process Category Accounting

Users are able to elect to account for a limited subset of their journals based upon business transaction entities using process categories.

4.4.2.9. Straight Through Accounting Processing

Oracle Subledger Accounting allows users to create subledger accounting and transfer and post the GL accounting in a single step. When creating journal entries either online or offline by the concurrent program, users can choose to immediately transfer and post the accounting in General Ledger. Oracle


Subledger Accounting therefore supports straight through processing from the subledger transaction to General Ledger balances.

4.4.2.10. On-line inquiries

Oracle Subledger Accounting provides multiple inquiries to view subledger accounting. Key transaction information are stored so users can easily understand what transaction has been accounted.

For example, a journal entry for an Oracle Receivables invoice includes the customer name, customer number, the source, the transaction type, transaction date, and the invoice number.

• Users can inquire upon all the accounting for a transaction either from the transaction workbench or from a common inquiry form. In the case of multiple accounting representations, they can compare the journals for each representation side by side to see the differences

• Users can inquire based upon subledger journal entry header information such as the GL date, or the ledger

• Users can inquire based upon subledger journal entry line information such as the amount or account

• Users can view their subledger journal entries in a T-account format

Oracle Subledger Accounting takes advantage of the Oracle personalization framework that allows users to customize their view of the accounting using any of the attributes of the journal entry and to save predefined searches. Embedded flows support a bi-directional drill between journal entry headers, lines, T-accounts, and transaction data.

4.4.2.11. Journal Entry Sequencing

Oracle Subledger Accounting supports two different mechanisms of sequencing its journal entries. The sequencing information is available for querying and display of journals.

4.4.2.11.1. Accounting Sequencing Oracle Subledger Accounting assigns a sequence to its journal entries as they are completed.

4.4.2.11.2. Reporting Sequencing Oracle Subledger Accounting supports separate sequencing designed to meet legal requirements in Southern Europe. The reporting sequence is assigned to both the subledger and general ledger journal entries when the General Ledger period is closed. This feature replaces the Accounting Engine (AX) legal sequencing and Libro Giornale features.

This type of sequencing is used by most of the legal reports required in some countries as the main sorting criterion to display the journal entries


4.4.2.12. Third Party Merge Accounting

Users have the ability to account for changes in third parties. These would include correcting the third party related accounting if the party involved in the transaction was incorrect, or managing the impact of third party merges or acquisitions on control accounts.

4.4.2.13. Manual Journal Entries

Oracle Subledger Accounting offers manual subledger journal entries that are within the context of an application. These can be used to record changes in third party information or reference values. Manual entries can be accounted on-line. They can be accessed via on-line inquiries and reports.

4.4.2.14. Third Party Control Accounts

Oracle Subledger Accounting stores balances for control accounts by customer and supplier. It uses a new key accounting flexfield qualifier that allows users to specify control accounts. General Ledger also prevents the entry of manual journal entry lines for control accounts thus ensuring that subledger control account balances are consistent with General Ledger balances for the same account combination.

To calculate the balances, Subledger Accounting uses the customer and supplier information it stores on journal entry lines. Users can complete inquiries based upon the customer and supplier information. Reports are available that detail, by third party, the journal lines that are used to create the balance for each third party control account.

4.4.2.15. Transaction Account Builder

Transaction Account Builder provides a flexible mechanism to derive default accounts for transactions. Product development and implementation teams can create rules to determine the accounts that will be defaulted onto transactions.

Rules can be created for either an entire account combination or for individual segments. They can be based upon transaction information or created as constant values.

4.4.2.16. Multi-period Accounting

Users can create accrual and recognition journal entries to allocate costs over a range of accounting periods.

When creating transactions, users specify the date range for which a line should be accounted. The standard Subledger Accounting journal entry setups such as how to determine the account and description of the subledger journal entry lines are available for defining both the accrual and recognition journal entries.

Users can also configure the GL dates, a prorating method, and have the ability to create a single recognition journal based upon the multiperiod end date. Recognition journals for future periods are created as incomplete until the period is open or enterable and are available for inquiries and reports.


4.4.2.17. Accrual Reversal Accounting

Users can indicate that a journal entry should automatically be reversed on either the next day or in the next GL period. This feature can be used for period end accruals or for other accounting that requires an automatic reversal of an accrual. It is possible to drill to the related reversal when viewing an accrual journal entry and vice versa.

4.4.2.18. Business Flows

Users can create accounting policies based upon both intra and inter-product business flows. This allows accounting definitions to explicitly handle cases where there is a logical relationship between accounting for two or more transactions faclitating reconciliation for intermediary accounts.

Examples are as follows.

• When creating the accounting for a payment, the user can indicate that the account used to book the invoice liability through the invoice transaction should be relieved

• When accounting for a Payables invoice matched to a receipt, the user can indicate that the receipt accrual booked at the time of receipt be relieved and that the description from the receipt be used

4.4.2.19. Accounted and Gain/Loss Amount Calculations

Subledger Accounting can use conversion information such as the conversion rate, entered amount and currency information to calculate accounted and gain/loss amounts.

Rules can be created that determine the account used to account for gain or loss based upon whether there is a gain or a loss.

4.4.2.20. Application Accounting Definitions Loader

The Application Accounting Definitions (AAD) Loader enables customers to import and export application accounting definitions and journal entry setups. Users can build and test their journal entry setups on a test instance, export them, and then import them to their production instance.

The AAD Loader also supports concurrent development and version control of the application accounting definitions.

4.4.2.21. Errors Accounting and Reporting

Subledger Accounting creates journals as completely as possible, even if there are conditions that make the journal invalid. These journals have an error status and are not eligible for GL transfer and posting. However, they are useful for troubleshooting setup and information issues.

For example, if the journal entry has a GL date in a closed period, the entry is be created and an error message indicates that the GL date must be adjusted or the period must be opened.


To minimize reconciliation issues, Subledger Accounting ensures that when there are multiple representations, all journals related to a given transaction must be valid before they may be accounted.

Users can resubmit a request to create accounting and specify that they would like to only process entries that have previously had errors. Errors may be viewed both on standard XML Publisher templates and via on-line inquiries.

4.4.2.22. Standard Reports

Oracle Subledger Accounting reports is built to allow users to take full advantage of the features of Oracle XML Publisher. Oracle Subledger Accounting delivers data definitions and Oracle XML Publisher templates for the following reports:

• Journal Entries Report: This report provides detailed journal entry information on a transaction-by-transaction basis for a period or period range

• Account Analysis Report: This report provides drill-down information about the movement on a particular account or account range for a period or period range

• Third Party Balances Report: This report provides balances and account activity information for suppliers and customers for a period or period range

• Open Account Balances Listing: This report gives users the ability to net account activity across all the journals related to a document, and to reconcile the outstanding amounts with the GL balances. This report replaces existing product functionality such as the Payables Trial Balance

4.4.2.23. Enhanced Reporting Currency Functionality

Multiple Reporting Currencies functionality is enhanced to support all journal sources. Reporting sets of books are now known simply as reporting currencies. Every journal that is posted in the primary currency of a ledger can be automatically converted into one or more reporting currencies. This conversion can be performed by Subledger Accounting, to convert all subledger journal entries, or by General Ledger, to convert more summarized General Ledger journals. You can choose to convert any journal sources and categories.

4.4.2.24. Diagnostics Framework

Oracle Subledger Accounting relies upon transaction information provided by other applications to create accounting. The Diagnostics Framework provides a tool to view the information used to create subledger journal entries.

This can assist in understanding how the journal entry setups were used to create journals. It can also be useful for Oracle support and for customers using Subledger Accounting to better understand the information provided to Subledger Accounting.

The results of the diagnostics are available as an HTML report.


4.4.3. Oracle Subledger Accounting Enhances the Functionality of the Global Accounting Engine

In this release, Oracle Subledger Accounting replaces the Global Accounting Engine. Oracle Subledger Accounting further extends the Global Accounting Engine functionality by providing customizable accounting rules via a flexible and robust accounting rules setup.

All Global Accounting Engine features are supported by Oracle Subledger Accounting.

A fully automated migration of all Global Accounting Engine generated data to Oracle Subledger Accounting is provided.

The following table lists the Oracle Subledger Accounting feature(s) that replace the functionality of the Global Accounting Engine:

Global Accounting Engine Oracle Subledger Accounting

AX Rules Journal Entry Setups

Subledger Setup Date Effective Application Accounting Definitions

Dual Posting Multiple Accounting Representations

Draft Accounting Draft Accounting

On-Line Inquiries On-Line Inquiries

AX Sequences Journal Entry Sequences

Customer Merge Third Party Merge Accounting

Manual Journal Entries Manual Journal Entries

Control Accounts Third Party Control Accounts


The following table lists the Oracle Subledger Accounting reports that replace the corresponding reports of the Global Accounting Engine. XML Publisher templates are provided so that any user can comply with their fiscal or statutory specific reporting requirements.

Global Accounting Engine Oracle Subledger Accounting

AX Daily Journal Journal Entries Report

AX Account Balances Account Analysis Report

AX Control Account Balances Third Party Balances Report

Italian Daily Journal Book Journal Entries Report

The Global Accounting Engine supported subledger accounting requirements in multiple European countries and delivered subledger accounting rule sets that addressed those countries specific fiscal and legal requirements. Oracle Subledger Accounting enables our customers to define rules sets to support subledger accounting requirements for all countries, and all subledgers via our rules definition setups. Oracle Subledger Accounting also delivers default accounting rule sets that replace the rule sets of the Global Accounting Engine as well as rule sets to support standard IAS/IFRS or US GAAP accounting. Oracle SubledgerAccounting provides easy methodologies to create rule sets (accounting methods) for any regulatory environment, while at the same time, complying with the parent's company fiscal and management requirements.

Both the Global Accounting Engine and Oracle Subledger Accounting generate accounting from a compiled definition of accounting rules defined by users. Oracle Subledger Accounting further maintains version control on the rules enabling users to modify the rules while maintaining auditability.

Oracle Subledger Accounting also enhances the integration of the accounting within the E-Business Suite, streamlines the posting to General Ledger, and provides standardized subledger accounting tables.

4.4.4. Terminology

Term Definition

Application Accounting Definition

A consistent set of journal entry setups for a specific product (application). Each application accounting definition determines the accounting that will be generated for a transaction or multiple events on a transaction. For example, a user can create a product definition that consists of setups to provide a US GAAP representation of their inventory accounting. Multiple Application Accounting Definitions can be created for each product.


Term Definition

Subledger A ledger that is subsidiary to the General Ledger, representing the accounting for a single subledger product. Transactions occur in subledger products such as Oracle Payables and Receivables. To represent the financial impact of these transactions, accounting is created as subledger and general ledger entries.

Subledger Journal Entry A subledger journal entry includes all of the journal entry lines used to account for an accounting event originating from a subledger product. Several subledger journal entries can be summarized to create a single general ledger journal entry. Because subledger journal entries provide the details for accounting, their corresponding general ledger entries are typically summarized.


4.5. Oracle Legal Entity Configurator

4.5.1. Overview

Legal compliance remains of paramount importance in today’s global marketplace. From an external viewpoint, all transactions are entered into by a legal entity. Being able to easily manage transaction data by legal entity is key to achieving such compliance. Oracle Legal Entity Configurator is a new addition to Oracle E-Business Suite that enhances the ability to manage one’s legal corporate structure and track data from the legal perspective. The solution provides the foundation for features that help daily operations comply with local regulations. For example, strengthening the recognition of legal ownership enables accurate intercompany documentation as well as sophisticated tax calculations specific to local jurisdictions. The legal functions set for each legal entity provide basic process controls that facilitate internal control management. Tracking one’s data from the legal perspective enables detailed reporting at legal entity, establishment, and registration level.

The Oracle Legal Entity Configurator solution is built upon the principles of completeness, flexibility, and convenience.

• The centralized data model supports legal information for internal legal entities, legal authorities, and jurisdictions. It fulfills global requirements to capture specific legal information that can differ by jurisdiction

• While compliance is important, achieving compliance should not compromise flexibility in managing business operations to maintain a competitive advantage. Therefore, the user is able to maintain legal and operational organization structures as distinct and independent views

• To make legal compliance simple and convenient, the Oracle Legal Entity Configurator provides a single place for setting up and maintaining legal entities, legal functions, and supporting legal information

4.5.2. Features

4.5.2.1. Oracle Legal Entity Configurator

Oracle Legal Entity Configurator strengthens one’s corporate legal structure in a centralized solution. With an accurate representation of one’s internal Legal Entities, users are able to obtain a clear view of the organization and identify transactions for legal compliance and reporting.

Oracle Legal Entity Configurator is the user interface that allows users to conveniently setup and manage their legal structure, legal functions, and supporting legal information in a single place.

Oracle Legal Entity Configurator is built to support global requirements for legal entity information entry, supporting global requirements for registering legal entities to several domains (e.g. income tax, commercial law) by geographic region with the appropriate government/legal authorities, for the purpose of claiming and ensuring legal and/or commercial rights and responsibilities.


Country specific fields and names are used to make the user interface intuitive for a user in any region. Companies are able to include additional country-specific information that they want to record for each legal entity.

Management tools are also provided to keep track of the latest information entered so the user can easily monitor the required registration status for both legal entities and establishments.

4.5.2.2. Legal Authorities and Jurisdiction

The legal authorities and jurisdictions feature allows the creation and maintenance of the supporting legal information in a central place.

Users are able to setup jurisdictions that legal entities and establishments will register to, in order to achieve legal compliance. This feature provides consistent fiscal and other government information for reporting and tax purposes.

To facilitate the setup, the most common jurisdictions are seeded. Users are able to define additional jurisdictions and legal authorities, categorize them by territories (at country, state, city levels) and legislative categories (e.g. income tax, commercial law, transaction tax, etc). Users can also setup information at jurisdiction level such as registration number format and legal functions to be performed by legal entities, which default automatically during legal entities and establishment registration processes.

4.5.2.3. Legal Date Tracking and Auditing

Legal date tracking and auditing captures changes to critical legal data. In many countries a full history of the changes to legal data is mandatory.

The changes to the legal structure are usually required as a result of changes in the company’s business operations, moving to new location, or the introduction of new legislation.

Auditing records the user who makes the change and reasons for the change. Tracking allows the user to specify exact dates when a particular change will become effective.

4.5.3. Terminology

Term Definition

Establishments Registration of a legal entity with provincial or state and other authorities in addition to its central registration, required in countries where legal registrations are needed at certain local levels.

Legal Authority Government, legal body in charge of enforcing legislation (laws), collecting fees/taxes, and making financial appropriations within a given physical area, for a type of law (legislative category). For example; the Internal Revenue Service is the legal authority for income tax Law in the U.S.


Term Definition

Jurisdiction Intersection of the physical territory (group of countries, country, state, county, parish, etc.), and Legislative category (labor law, transactions tax law, income tax laws) within which legal authority may be exercised.

Legislative Category Set of laws of same category made by a government legislative authority for regulating relationships inside a community.

Legal Function For exercising legislation, legal authority determines functions that the registered entity will have to perform (e.g. produce a yearly report). These functions vary per type of laws and territory


4.6. Oracle Advanced Global Intercompany System

4.6.1. Overview

Oracle Advanced Global Intercompany System (AGIS) streamlines the intercompany trading and reconciliation process across Ledgers. Oracle AGIS facilitates balanced intercompany transactions for the global enterprise because it provides a forum for trading partners to exchange intercompany transactions in a controlled manner.

Enhanced for this release, Oracle AGIS allows companies to comply not only with local regulations, but also to follow established corporate standards for processing intercompany transactions between related legal entities of an enterprise. It also provides interactive reconciliation reporting which allows drill-down to the details of Intercompany Account Balances so the source of discrepancies to the balances of each trading partner’s account balances can be found quickly.

4.6.2. Features

4.6.2.1. Intercompany Balancing

Intercompany and Intracompany Balancing features are updated in this release. When a transaction with multiple balancing segment values is entered, the Balancing Process automatically generates the correct intracompany or intercompany accounting entries, depending on whether the balancing segments are in the same legal entity or in different legal entities.

If the balancing segments values are in the same legal entity (intracompany accounting) the automatic Balancing Process uses Cross-Entity Balancing Rules to generate the balancing accounting entries. You can specify both the Debit Balancing Segment Value and Credit Balancing Segment Value for the balancing relationship; this new dimension allows you to define explicitly the accounts that should be used when any pair of balancing segments values are balanced against each other.

If the balancing segments values are in different legal entities (intercompany accounting) the automatic Balancing Routine uses Intercompany Accounts setup to create the balancing accounting lines. You can setup several intercompany accounts for your intercompany activities, and select one as the default to be used for automatic balancing.

4.6.2.2. Intercompany Invoicing

New in this release is the automatic creation of payables and receivables invoices for intercompany transactions. Where local statutory compliance requires an Intercompany-Organization to produce physical invoices for intercompany transactions, this can be defined as part of the setup for the legal entity. Oracle AGIS then synchronizes the automatic creation of payables and receivables


invoices for the initiator and recipient organizations whenever an intercompany transaction is processed.

4.6.2.3. Intercompany Reconciliation

Users can perform reconciliation between Legal Entity Relationships belonging to the same or different ledgers. The users are able to run the reconciliation process any time for open or closed periods, and can choose how much detail they want to work with.

4.6.2.4. Manual Intercompany Transactions

The entry of intercompany transactions is enhanced in this release.

For all initiator and recipient organizations, the legal entity information is clearly displayed on each transaction. Intercompany accounting entries (or where appropriate, intracompany accounting entries) are generated automatically based on centralized setup.

The initiator organization is able to create a single batch containing multiple recipient transactions across different ledgers, currencies and calendars, which are automatically submitted to all recipients for approval. When a batch is entered with multiple recipients, Oracle AGIS optionally prorates the distribution amounts for each recipient, based on the proportion of the transaction allocated to that recipient.

4.6.3. Terminology

Term Definition

Intercompany Transactions

Transactions between two or more related internal legal entities within an enterprise

Intracompany Transactions

Transactions between two or more business units within the same legal entity


4.7. Oracle E-Business Tax – New Product

4.7.1. Overview

Oracle E-Business Tax is a new product in this release.

Oracle E-Business Tax provides the infrastructure for transaction tax knowledge management and delivery using a global system architecture that is configurable and scalable for adding country specific tax content. As the single point solution for managing transaction-based tax, Oracle E-Business Tax uniformly delivers tax services to all E-Business Suite business flows through one application interface. Oracle E-Business Tax consists of a tax knowledge base, a variety of tax services that respond to specific tax events, a set of repositories (for tax content and tax recording) that allows customers to manage their local tax compliance needs in a proactive manner, as well as the ability to integrate with external tax content providers through a single integration point. In short, Oracle E-Business Tax is the global and consistent compliance repository that encapsulates fiscal and tax rules in a single point solution for tax events that is easy to integrate, extend, and implement.

Oracle E-Business Suite products that are integrated for tax services with E-Business Tax in this release include the following:

• Oracle Purchasing • Oracle Internet Procurement • Oracle Receivables • Consigned Inventory • Oracle Payables • Oracle Intercompany Invoicing • Oracle Order Management • Oracle Trade Management • Oracle Services Contracts • Oracle Order Capture/iStore/Quoting • Oracle Internet Expenses • Oracle Project Accounting • Oracle General Ledger

4.7.2. Features

4.7.2.1. Configuration Options and Provider Service Subscriptions

Users using a subscription model can share the tax setup. The owner of tax setup data is defined as a Configuration Owner and can be an Operating Unit or a Legal Entity. In addition, Oracle E-Business Tax supports the concept of a Global Configuration Owner, an enterprise level configuration owner that can hold data which is common and visible to all configuration owners.

A legal/business entity may want to own i.e., to retain the responsibility to create and manage tax content using a new subscription model. This subscription model also allows Legal/business entities to use, and override as necessary, content that is managed and maintained by the Global Configuration Owner by simply choosing the appropriate configuration option for each regime. Although


transaction data is secured using the data security mechanism of the application product that requests a tax service, the tax setup data that is used in servicing that request is obtainable based on the configuration option chosen for each regime that is applicable to a transaction.

In addition, a Configuration Owner may choose to subscribe to the services of a Tax Calculation Service Provider for a given regime.

4.7.2.2. Events and Configuration Owner Options

Users have greater granularity in defining tax control options. A new Tax Events model allows E-Business Suite applications to map their various documents and actions across applications into corresponding tax event classes and tax event types within Oracle E-Business Tax. These tax event classes are business processes that would typically have the same treatment with respect to taxes. For example, purchase orders and payables invoices are classified as a ‘Purchase transactions’. A configuration owner can define control options for a tax event class or at a lower level such as a particular application document. Control options include:

• Define rounding level • Allow override of calculated taxes • Allow manual tax lines to be entered • Allow recalculation of manual tax lines • Allow self-assessment for imported documents

4.7.2.3. Tax Configuration Manager

The Tax Configuration Manager component is responsible for creating and maintaining the structural foundation of tax, the building blocks. This tax content information such as taxes, tax jurisdictions, fiscal classifications, tax rates, tax rules, is stored in a centralized repository. In Release 12.0, existing tax information is conveniently loaded into this repository and transaction processing can continue uninterrupted.

Additionally, there are options available to optimize tax set up and allow each organization to subscribe to and use a single common configuration source for all transactions, or to use the common configuration source with other ‘override’ tax set up specific to its own tax requirements.

4.7.2.4. Tax Determination Services

The Tax Determination Services component calculates transaction taxes based on transaction details and tax setup information. This component is involved in the following:

• Automatically determining which taxes are applicable for the transaction based on the place of supply, the tax registrations of the parties involved, and other applicability rules

• Determining how they should be calculated

• Producing the results from the calculation


The results are an ordered list of applicable taxes and associated details such as tax jurisdiction, tax, etc., which can be updated by the user.

The level of complexity of tax rules varies between different tax regimes. Depending on the complexity of the tax rules in different regimes, tax rules may or may not be defined for all of the above processes. If there is no complex rule associated with any of the above processes, then the default values, as specified during setup, are used during the Tax Determination process.

Additionally, the user has the ability during transaction entry to:

• Enter or change additional tax relevant factors such as Intended Use, Business Transaction Category, and Product Fiscal Classification to ensure the proper taxes are determined for special cases and exceptions

• View, drill down, enter and change tax line details

4.7.2.5. Centralized Tax Record Repository for Audit and Reporting

Tax transactions and all the noteworthy tax information for each transaction is recorded in a centralized Tax Record Repository. This includes the recording of inputs i.e. transaction data, and outputs, i.e. tax lines and distributions, that can be used by management and tax authorities for managing, auditing and reporting purposes. In Release 12.0, historical and current tax records are available in the new Tax Record Repository for reporting purposes.

4.7.2.6. Tax Reporting

Tax authorities around the world have promulgated a substantial variety of requirements pertaining to the communication of tax information, making tax compliance both varied and complex.

Tax Reporting is flexible enough to provide data in a user-friendly format that allows the standard and identified country specific requirements to be met. Users are able to use the information in the centralized tax record repository to create legal documents and reports that facilitate tax compliance. In Release 12.0, the existing tax reports are available as before, based on the new repository. In addition, new custom reports can be generated quickly from these templates using Oracle XML Publisher.

4.7.2.7. Tax Simulator

A user interface is provided that allows users to enter transactions, such as a Purchase or Sales Invoice, and view the results of tax calculation. This is a valuable tool for tax managers who can use this interface to ensure that the tax configuration, including any rules that have been setup, provide the expected results. The Tax Simulator can also help the tax manager simulate the effect of a new rule or new ‘incremental’ setup data, such as a new tax rate. The Tax Simulator enables the user to;

• View tax lines for ‘simulated’ transactions

• Drill down into an audit trail of information for each tax line, identifying the tax rules that were used


• Generate a log file that shows the tax rules that were found to be unsuccessful

• Simulate the tax on standalone documents, tax on related documents such as a payables invoice created by matching to a purchase order, documents to which another document has been applied, such as a prepayment applied to a payables invoice, adjusting documents such as a credit memo, and imported documents with tax lines.

4.7.2.8. Guided Configuration

Oracle E-Business tax enables a tax manager, i.e., an expert in the domain of tax, to configure the system to meet the tax requirements in one or more countries. Oracle E-Business tax provides features such as the following: • A setup task list that lists the sequence of tasks that need to be completed; the

order in which it typically needs to be completed; whether a given step is mandatory. Where applicable, it also provides the user with a link to navigate to the UI where a given task can be completed.

• A guided rule definition process particularly catering to first-time or occasional users whose primary expertise is in tax, not IT. This follows a step-by-step rule definition process using terminology and concepts that a tax manager would understand.

• An expert users rule entry process that enables users familiar with the terminology and the process to quickly create tax rules.

• Content containers that explain concepts, provide background information or information about related functionality.

• Information icons that alert the user in particular to seemingly innocuous options that may have profound downstream impacts.

4.7.2.9. Additional Enhancements

Oracle E-Business tax embodies the existing tax features that were supported in the prior release. In addition, Oracle E-Business Tax also supports new local and regional tax requirements:

• Deferred Tax in Payables • Enhanced handling of Tax on Freight • Sales and Use Tax in procurement • Enhanced exemptions and exceptions • Multiple Tax Registrations • Multiple Recovery types • Tax reporting codes • Cash as well as Accrual Basis reporting for tax • Enhanced handling of Tax on Intercompany Movements

4.7.3. Terminology

Term Definition

Deferred Tax The accrual (and therefore the settlement and/or reporting) of taxes due or recoverable is delayed from the tax date basis due to special tax rules either enforced by the tax


Term Definition

authority, or allowed with the agreement of the tax authority.

Fiscal Classification A classification used by a tax authority. This can be further classified as: party fiscal classification, party site fiscal classification, product fiscal classification, transaction fiscal classification, user-defined fiscal classification and document fiscal classification.

Place of Supply The specific tax jurisdiction where the supply of goods or services is deemed to have taken place

Provider An organization that provides tax information to another organization. e.g., Vertex and Taxware provide tax content for the US Sales tax regimes.

Subscriber A party that subscribes to a service. Tax Applicability The process that identifies all the taxes that need to be

determined/levied for a given transaction. The result of this process is a list of applicable taxes.

Tax Content The master and reference data (i.e. non transactional) necessary to support the determination, recovery, settlement or reporting of one or more taxes.

Tax Configuration Manager

This creates, maintains and manages (including adding, updating, disabling, purging, validating or listing data) tax content to meet global and local tax compliance needs.

Tax Content Repository This contains the master and reference data required in the Oracle E-Business setup, as well as the tax rules that may be used in tax processing.

Tax Determination The process and data that includes the following sub-processes: tax applicability, tax status determination, tax calculation, and tax lines determination.

Tax Determination Services

A flexible, data driven, rules-based model that enables users to define complex and varied rules.

Tax Event Class A business classification to categorize a group of documents (application event classes) of one or more E-Business Suite Applications that are essentially the same from the tax perspective.

Tax Line A line with the tax recovery amount, or non-tax recoverable amount, by tax and tax jurisdiction, for a given transaction line and tax event. A tax line may have one or more tax recovery schedules associated.

Tax Record Repository This component of E-Business Tax contains all the key attributes necessary to record the tax event and ensure the accuracy of information provided.

Tax Regime The set of tax rules that determines the treatment of one or more taxes. e.g., the Excise tax regime in India includes rules for Excise tax, and Additional Excise tax; VAT regime in Argentina includes rules for Standard VAT,


Term Definition

Additional VAT, and Perception VAT.

Tax Rule The set of conditions used to determine tax.


5. Oracle Financial Applications - Features and Enhancements

5.1. Oracle Advanced Collections

5.1.1. Overview

Oracle Advanced Collections is designed for collection agents and managers; receivables account managers, and revenue management personnel responsible for resolving delinquencies and recovering outstanding debt from customers.

5.1.2. Features


Multi-Org Access Control enables companies that have implemented a Shared Services operating model to efficiently process business transactions by allowing them to access, process, and report on data for an unlimited number of operating units within a single applications responsibility. This increases the productivity of Shared Service Centers since users no longer have to switch applications responsibilities when processing transactions within multiple operating units at one time. Data security, which is maintained using security profiles that are defined for a list of operating units, determines the data access privileges for a user.

5.1.2.2. Uptake of Cross-Operating Unit Initiative

This allows users of Oracle Advanced Collections to view and manage their customers across operating units. Collections activities such as strategies and work items, dunning letters, and collections calls can incorporate transactional and customer data from different operating units if needed.

5.1.2.3. Consolidation of Collections Functionality into Advanced Collections

The Collections Workbench module in Oracle Receivables is obsolete and replaced with like functionality in Oracle Advanced Collections. This includes functionality relating to customer interactions and correspondence, transaction processing, and dunning activities. Additional features in Oracle Advanced Collections such as scoring, collections strategies, enhanced payment and promise processing, automated promise tracking, and automated collector work assignment are also be available. A migration white paper and migration scripts will be provided to Oracle Receivables Workbench customers moving to Oracle Advanced Collections.


5.1.2.4. New Implementation Checklist and Setup Screens

Functional and technical managers responsible for setting up and implementing Oracle Advanced Collections can start the process by navigating to the Collections Checklist, an implementation tool designed to ease setup and provide a single place to record and manage implementation decisions. The Checklist guides the manager through a questionnaire that asks a few key questions about the intended use of Oracle Advanced Collections. The manager’s responses to these questions automatically set system profiles and settings for Collections. The questionnaire also enables or disables a set of Task Pages on which the manager provides additional detailed information that set additional settings for Oracle Advanced Collections. Collections Checklist allows functional experts to do an ‘out of the box’ set up of Oracle Advanced Collections independent of corporate IT staff.

5.1.2.5. Improved Payment Processing and Customer Funds Capture

Oracle Advanced Collections uses Oracle Payments’ new payment formatting and end-to-end electronic payment processing features made available in this release. Previously collectors had to manually type in customer credit card or bank account information when taking payments, resulting in decreased efficiency and increased risk of data entry errors. Now collections agents can select from customer credit card and bank account data (masked if desired) already in the system. If customers' payment method data needs to be updated or added, agents can easily navigate to another screen to add this information. Payment method and processing rules can be easily configurable from new setup pages, and customers' payments can be automatically authorized and captured.

5.1.2.6. Use of Oracle Territory Management to Define Collections Territory Hierarchy

Deploying organizations using Oracle Advanced Collections are able to use Oracle Territory Management’s ‘collections’ usage to support the creation and use of collections territory hierarchy. This allows unique collections territories to be created, different than sales territories. Collectors can then be assigned to customers within these collections territories.

This feature was first released in Oracle Advanced Collections Mini-pack H (11i.IEX.H).

5.1.2.7. AR ‘Collector’ Field and Extension to Territory Management

Oracle Advanced Collections uses the Territory Management module to define and manage customer and collector alignment within defined territories. Access to customer records and actionable work is then assigned to collectors based on membership in territories and customers in each territory.

Oracle Advanced Collections also makes use of the ‘collector’ field from Oracle Receivables in the Customer Standard screen to assign work. This allows Collections customers already using the ‘collector’ field to take advantage of the functionality in the Oracle Territory Management module. Collections activities for specific customers can then be assigned to collectors who ‘own’ those customers.


Conversely, collections agents previously assigned territories and customers through the Territory module can now also be added to Oracle Receivables’ ‘collector’ field. This extends collections agent information to other Receivables’ users. It also allows those collectors to use Receivables’ collections-related reports.


5.1.2.8. XML Publishing Technology for Collections Correspondence

Oracle Advanced Collections uses the Oracle XML Publisher tool to manage and generate all correspondence sent to customers, including dunning notices and confirmation letters regarding payments, promises, disputes and adjustments.

Reconfigured Correspondence templates and associated queries are included for use in test or production environments. Additional templates can be created using XML Publisher. Correspondence output can be email, print or fax. Collections users can see a history of correspondence sent to customers on the History tab. Collections customers using Oracle One-to-One Fulfillment can migrate to XML Publisher or continue to use that module.


5.1.2.9. Configurable Metrics

Many collections organizations use metrics specific to their organization or industry to better understand the collections situation of customers, accounts, or bill-to locations. A new configurable Metrics tool allows managers to define metrics formulas that are automatically calculated and displayed on the Profile tab for collections users. A number of preconfigured metrics formulas are included for testing or use in production systems.

The Profile tab layout has been revised to support the new Metrics tool. Additional fields relating to a customer’s credit profile have also been added.


5.1.2.10. Aging-based Dunning Plans

Dunning Plans include aging bucket parameters for all data levels (customer, account, bill-to, transaction) in Oracle Advanced Collections. A collections manager can configure dunning plans that look at the oldest aged invoice for each customer, along with the score, and have the system send different dunning letters to customers in each aging bucket. Optional dunning callbacks can also be included as part of dunning plans.



5.1.2.11. Collections Best Practices

Enhancements that reflect collections best practices include the following;

• System defaults set to the recommended Customer operational data level for optimal performance, efficiency, and a complete view of customer accounts, overdue amounts, scoring and strategy execution, work assignment, and correspondence. Deploying organizations can change default settings if their current business rules require that they run Collections at account, bill-to or transaction level. Collections agents can easily change data levels from the main Collections screen at any time.

• New preconfigured best practice elements for scoring engines and scoring components, strategy templates and work item templates, collections correspondence, and metrics formulas (mentioned previously). These elements are also set at the default Customer level although additional preconfigured elements are shipped for organizations that run their collections business at Account, Bill to or Transaction level. Preconfigured elements can be used during implementation testing or in live production systems.

• New ‘All’ history for a comprehensive summary view of everything that has happened with a particular customer. Like the current history types available from the Collections ‘History’ tab, the new All history type allows a collector to roll-up every customer interaction, transaction, and correspondence event to the Customer level or drill down to specific Accounts, Bill-tos, or Transactions if desired.

• Inclusion of dunning history originated in Oracle Receivables in the Correspondence (previously called ‘Dunning’) history on the Collections History tab for a comprehensive list of all dunning notices sent to a customer.

• Uptake of Oracle Receivables’ ‘exclude from dunning’ feature that allows a collector to remove a customer from future dunning activity. The collector can exclude and/or re-include a selected customer for dunning from the toolbar on the main Collections screens. This allows collectors to deliver better customer service to high-value customers or customers who don’t need dunning notices.

• Ability to designate a contact as the default collections and/or dunning contact from the Actions menu list. Once designated, that ‘collections’ contact name and contact information automatically appears when the organization is displayed. ‘Dunning’ contacts are sent dunning notices as part of Collections Strategies or Dunning Plans.


5.1.2.12. Filterable Bali Tables

In order to improve user efficiency and better use of data displayed on the summary table in the Transactions tab, the ability to set filtering criteria and save the filter rules has been added. For example a collector can set filtering rules to


show transactions related to a particular Purchase Order on the Transactions summary table. Filters can be created and saved, then accessed later by the user.

A new Full Screen button has been added to the Transactions tab that displays up to 18 transaction records at one time, with the ability to scroll to more. The Filtering tool is available on the full screen as well.


5.1.2.13. Consolidated Collections with Lease Contracts or Loans

Oracle Advanced Collections allows a collections agent to see both Oracle Receivables and Lease Management or Oracle Receivables and Oracle Loans’ transactions simultaneously. This provides the collector with a complete picture of the customer who has a loan or leases capital equipment as well as orders goods and services. This consolidated collections approach allows the collector to more effectively work with customers during a single customer interaction. A new Loans tab has been added to Oracle Advanced Collections for Oracle Loan users. Along with the collections agents’ screens, Collections extends the consolidation of Receivables and Loans or Leasing collections to its strategies and scoring tools for more effective collections management.


5.1.2.14. Search Tool Enhancements

The search tool in Collections includes the ability to search on additional transactional criteria including purchase order, sales order, and shipping information.


5.1.2.15. Enhanced Scoring Capability

Oracle Advanced Collections allows scoring ranges to extend to negative numbers and beyond the current 1-100 limits. Scoring also supports integer score results and an ‘out of range’ feature that determines how to handle a score that falls outside the anticipated score ranges.


5.1.2.16. Automatic Strategy Changing

Collections situations for customers are rarely static; delinquency amounts and balances can change rapidly. Oracle Advanced Collections supports the ability for collections strategies to be automatically changed based on pre-determined score ranges. This allows the collections organization to be even more responsive and proactive to the dynamics of each customer.




5.2. Oracle Assets

5.2.1. Overview

Oracle Assets, a comprehensive asset management solution, ensures maintenance of accurate property and equipment inventory as well as optimal accounting and tax strategies.

5.2.2. Features


Oracle Subledger Accounting provides tools that allow users to meet multi-gaap, corporate, and fiscal accounting requirements. With a flexible tool called Accounting Methods Builder, users can determine the accounts, lines, descriptions, summarization, and dates of their journal entries. Users can also add detailed transaction information to journal headers and lines. Detailed subledger accounting journals are available for analytics, auditing, and reporting. They are summarized, transferred, imported and posted to Oracle General Ledger. For more details, please see the Oracle Subledger Accounting section of this document.

Oracle Assets is fully integrated with Oracle Subledger Accounting for creating Journal Entries, Account drill down and Inquiry.

Oracle Assets provides several out-of-the-box sources and rules to derive account code combinations and journal entry descriptions. Customers can use the seeded Oracle Assets accounting definition or they may use the flexibility of SLA to create their own definitions.

5.2.2.2. Enhanced Mass Additions Interface for Legacy Conversions

Additional attributes are available in the Mass Additions interface to ease legacy data conversions. Attributes such as asset life, depreciation method, prorate convention; bonus rule ceiling name, depreciation limit, and others can now be directly imported from your legacy system instead of being derived from asset category setups.

5.2.2.3. Automatic Preparation of Mass Additions

A set of extensible public API’s is available to automatically prepare a mass addition line for all required attributes such as depreciation expense account, asset category, location etc. with the goal of minimizing manual intervention by the user in the mass additions workbench.


5.2.2.4. Enhanced functionality for Energy Industry

• Asset Impairment: Impairment is used to reduce the carrying value of a producing asset. Expressed another way, impairment expense is simply an unplanned depreciation expense. When entering an unplanned depreciation expense, the user may enter a Type, Amount and Expense Account. ‘Type’ allows the user to indicate the nature of impairment performed. ‘Amount’ is recognized as a current period expense in addition to the normal periodic depreciation expense. The unplanned depreciation (impairment) ‘expense account’ may be derived from the category setup or it may be entered at the time of each impairment transaction

• Energy Units of Production Method: In the oil & gas industry, asset properties may include fields, leases and wells. These assets are typically associated with units of production (UOP) and are depreciated using a special UOP depreciation method. ‘Energy’ assets are generally structured into two levels, group and member assets, where the group asset is a collection of several members. Units of production are entered on the group asset for calculating depreciation and then allocated down to the member assets

• Energy Straight line Method: In the oil & gas industry, non-producing assets are depreciated using the energy straight-line method based on the asset’s net book value. Assets that depreciate using the energy straight-line method may either depreciate at the member asset level or group asset level. When the depreciation is calculated at the member asset level, it is calculated based on each member’s life and then summed up to the group asset. When depreciation is calculated at the group asset level, the life of the group asset is used

5.2.2.5. Flexible Reporting using XML Publisher

Oracle Assets leverages the Oracle XML Publisher technology to support major asset transaction reports. With XML Publisher, you can display reports in variable formats by creating your own templates using familiar tools such as Acrobat, Word and Excel.

5.2.2.6. Automatic Depreciation Rollback

Since release 11i, users have been able to run depreciation for an asset book without closing the period. If additional adjustments are required in the current period, then the user submits a process to roll back depreciation for the entire book, performs the necessary adjustment(s) and then resubmits the depreciation program. In Release 12.0 the intermediate manual step of rolling back depreciation for the entire book in order to process further adjustments on selected assets is no longer necessary. As before users may submit depreciation for the entire book prior to closing the period. If it becomes necessary to process financial adjustments on one or more assets, the user may proceed with the transaction normally via the asset workbench or mass transactions.

Oracle Assets automatically rolls back the depreciation on just the selected assets (instead of the whole book) and allows the transaction(s) to be processed normally. The asset(s) for which depreciation was rolled back is automatically picked up during the next depreciation run or at the time that the depreciation period is finally closed.


5.2.2.7. Enhanced Logging for Asset Transactions and Programs

Through the common logging architecture, Oracle Assets ensures a common repository for all log messages within and outside the product. This reduces resource usage on the file system for excessively large log files.


5.3. Oracle Bill Presentment Architecture

5.3.1. Overview

Oracle Bill Presentment Architecture (BPA) allows you to retrieve billing data from multiple data sources for presentment on a bill. This means that the physically presented bill is no longer limited to information contained within Oracle Receivables. BPA provides template-based configuration of online and printed bills, giving you the ability to select the content of the bill, choose the layout design, display parent billing lines and drilldown details, and then set up the assignment of these billing templates by defining rules based on criteria you specify. By separating bill presentment from transaction accounting, Oracle BPA allows for more understandable and comprehensive bills, increasing the likelihood and timeliness of bill payment.

5.3.2. Features

5.3.2.1. Balance Forward Bill Presentment

Oracle Bill Presentment Architecture supports the presentment of a balance forward bill. A balance-forward bill at a minimum includes previous balance carried over from last billing period, payment received, current charges and activities, taxes, and total balance due. BPA supports the online and printed presentment of balance forward bills.

5.3.2.2. Enhanced Template Assignment

Oracle Bill Presentment Architecture supports the use of source product specific attributes as assignment criteria in template assignment rules. This new feature allows the selection of attributes for the use of template assignment from the following places

• Seeded header level content items of primary data source

• Header level flexfields of supplementary data source

5.3.2.3. Attachment Printing

Oracle Bill Presentment Architecture allows printing of PDF attachments with the printed bill. For added security, the PDF attachments that are printed are limited to those belonging to a specific document category designated in a profile option.

5.3.2.4. Legal Entity

Oracle Bill Presentment Architecture supports the display of Legal Entity information on online and printed bills. Users are able to include Legal Entity specific attributes on all BPA templates.




Oracle Bill Presentment Architecture leverages Multi-Org Access Control to allow the presentment of bills from multiple operating units via a single responsibility.


5.4. Oracle Credit Management

5.4.1. Overview

Oracle Credit Management is the hub product for credit analysis and decisioning throughout the Oracle E-Business Suite.

This release contains features that extend the functionality and integration among products in the suite. It also provides the infrastructure to extend the data needed to make informed credit decisions.

5.4.2. Features

5.4.2.1. Common Components for Leasing and Loan Applications

Many of the data entry pages needed to initiate a credit application for leases and loans are available in Oracle Credit Management. In order to ensure a seamless progression of application entry to decision, common page components available in Oracle Credit Management have been incorporated in the lease and loan applications. Entered information automatically flows to the credit case folder. This eliminates the need for the user to enter the same data in multiple applications and speeds the flow of information through the decision process.

This feature was first released in Oracle Credit Management Mini-pack D (11i.OCM.D).

5.4.2.2. Enhancements to User-Defined Data in Credit Case Folders

Oracle Credit Management offers an extensive array of historical, system, external and user entered data for credit reviews. The ability to create user-defined data points for credit analysis and scoring has been enhanced to accept SQL functions. SQL functions are automatically executed and resultant data is loaded during credit case folder creation. This feature improves the user’s ability to take advantage of automated credit decisioning since all necessary data is present to calculate credit scores. Potential uses of this feature are:

• Lease application terms and conditions

• Third Party Content Provider information

• User-specific calculations, such as Days Sales Outstanding or financial ratios


5.4.2.3. Multi-Period Financial Data Comparison

When you enter information on a credit application for use in credit analysis and decisioning, a key criteria is the ability to compare the organization’s financial data over several periods. Users are able to select from previously entered periods and compare multiple periods of financial data to assess positive or adverse trends.



5.4.2.4. Credit Scoring Model Enhancements

With the addition of SQL function capability in defining additional data points, scoring models take advantage of those data points to extend the power of the scoring model. Scoring models can be created without assigning weighting factors and raw data values can be passed as the actual score. This feature is useful for those data points where the value itself is part of a score, such as Dun & Bradstreet’s Paydex® Score.


5.4.2.5. Credit Recommendation Enhancements

Credit recommendations often include additional tasks or ‘conditions’ that must be met for the requested credit to be approved. Enhancements to the credit recommendations include the ability to assign additional steps to be taken, particularly in the case of a lease application. In addition, rejecting a request for credit has been enhanced to provide reasons for the rejection and the ability for rejectors to document options to negotiate a mutual outcome.


5.4.2.6. Credit Decision Appeals Processing

This feature provides the functionality to allow credit applicants to resubmit information when a credit rejection decision is made to improve their ability to meet the debt obligation. This provides credit personnel with the ability to satisfactorily manage their risk while providing an avenue to establish a stronger customer relationship.


5.4.2.7. Dynamic Credit Analyst Assignments

With the variety of rules that determine how credit reviews are assigned to credit analysts, this feature enables the user to define their credit organization structure and implement rules that automatically assign the appropriate employee to credit requests and credit case folders.


5.4.2.8. Automatic Assessments of Guarantors

Assessing the creditworthiness of customers can include structures by which the debt obligation is reduced through participation of guarantors. However, guarantors also carry credit risk. This feature automatically creates a case folder


for guarantors and enables the credit user to assess the creditworthiness of the guarantor.



5.5. Oracle Enterprise Performance Foundation

5.5.1. Overview

The Enterprise Performance Foundation is an integral part of the Release 12.0 Data Schema that supports analyzing and mining E-Business Suite data by adding multi-dimensionality; date effective business rules, analytic functions; audit and integrity features; and its own security administration to the data you select.

The Enterprise Performance Foundation (EPF) is the evolution of the Oracle Financial Data Manager used in earlier OFSA releases. This foundation will be used to administer and maintain the new common data model and functional components used across the CPM Applications and by other E-Business Suite applications.

The Enterprise Performance Foundation (EPF) powers several industry-neutral products such as the Financial Consolidation Hub, Enterprise Planning and Budgeting, the Profitability Manager, as well as the Financials Services Industry- specific, Oracle Transfer Pricing application.

5.5.2. Features

5.5.2.1. Oracle Release 12.0 Schema

By contrast with the former Oracle Financial Services Applications (OFSA) common features, the EPF is in the Oracle Applications Release 12.0 schema, so that EPF shares a database environment within the Oracle E-Business Suite, rich in detail data that is invaluable for profitability analyses, planning and risk management.

5.5.2.2. Enhanced Oracle General Ledger Integration

EPF can be configured and utilized to reflect Oracle General Ledger ledgers and ledger sets, as well as associated metadata, including calendar definitions, segment/dimension value sets and hierarchies, global value set combinations, currency administration and historical currency exchange rates.

5.5.2.3. Shared, Reformatted Ledger Data

This release includes implementation of a new management ledger data table designed to provide tighter integration with the Oracle Financial Applications (Oracle FinApps). Replacing multiple individual ledger data storage tables previously used by the OFSA applications, SEM Exchange (ABM) and Oracle Financial Analyzer, and which were sourced from the Oracle General Ledger (OGL) with separate integration programs, this new repository will serve as the single source of truth for critical management ledger information across the Oracle E-Business Suite. Data is sourced from Oracle General Ledger using a single, centralized integration routine, eliminating the need for customers to operate and maintain multiple integration programs.


The common data model currently supports the following Oracle E-Business Suite applications: Oracle Profitability Manager, Oracle Transfer Pricing, Oracle Enterprise Planning and Budgeting and Oracle Financial Consolidation Hub. This provides a robust view of data across Oracle’s applications and ensures an accurate and consistent source of data for use in analytical and financial management applications.

5.5.2.4. Oracle Workflow Integration

Oracle Workflow supports the definition, automation and integration of approval flows prior to promotion of new business rules in a production environment. Workflow facilitates compliance with internal quality control and audit requirements. Using approval states on Business Rules enables creation of rules by many users, but restricts formal review and final approval to a pre-defined number of authorized users.

5.5.2.5. Integration with Concurrent Manager

The Concurrent Manager in the Oracle E-Business Suite manages Business Rule processing. All Oracle Applications processes are centrally managed and executed through Oracle Concurrent Manager interfaces. Calculations may be run one at a time, or users can assemble Request Sets with multiple concurrent processes, taking advantage of the full functionality of the Oracle E-Business Suite processing architecture. This replaces the functionality that Request Queue served in OFSA 4.5.

5.5.2.6. Oracle Warehouse Builder Integration with Interface Tables

Release 12.0 includes components to allow users to define ETL maps and load data into interface tables using Oracle Warehouse Builder (OWB). For dimension members, the OWB structures also consolidates the information currently input in multiple interface tables into a single table. Dimension, hierarchy and data loaders may be used, as usual, to move the metadata and data from the interface tables into dimension and fact tables.

5.5.2.7. Oracle Warehouse Builder Replaces Balance & Control

In Release 12.0, Oracle recommends the use of Oracle Warehouse Builder for data cleansing and other ETL activities, replacing the Oracle Balance & Control component of Oracle Financial Data Manager. The Cash Flow Edit routines previously available in Oracle Balance & Control are now fully integrated within Oracle Transfer Pricing.

5.5.2.8. New User Interfaces

Release 12.0 includes a new user interface for the Oracle Financial Services applications. The products in the Oracle E-Business Suite have a common web browser look and feel, making the interfaces more intuitive for users. As with former OFSA releases, a user has a familiar application flow experience, which reduces the cost of training when using multiple applications. With the incorporation of E-Business Suite responsibilities, the release supports predefined responsibilities granting security to application functions for different groups of users. Clients can also create their own responsibilities, customizing


access to different application functionality components as appropriate for different types of users.

5.5.2.9. Security and System Administration

5.5.2.9.1. E-Business Suite Responsibility-Based Security The new features in this release include security based on precise user responsibilities of the Oracle E-Business Suite. In addition to E-Business Suite responsibilities, Security Folder features available in previous OFSA releases have also been incorporated in Release 12.0. Security Folders are used for storage of Business Rules, and are used to control and grant user access to Business Rules that have been created within the defined security folder. The combination of E-Business suite responsibilities and Security Folders provide a powerful security system capable of meeting the security needs of all users.

5.5.2.9.2. Shared Administration EPF-based applications use a single facility to maintain meta-data required by all applications. The specific administration functions include the following:

Object Registration. The calculation engines that use the common data model reference meta-data to determine how to process each specific business object. The object registration feature provides a way to maintain the meta-data related to tables, columns and views used within the application.

Value Set Definition. Value sets are used to manage the list of values, or domain, for each of the dimensions. Value Sets are defined at the Ledger (Set of Books) level, providing the ability to use different lists of values for different Ledgers within the same dimension.

Global Value Set Combinations. Similar to the chart of accounts in the General Leger, Global Value Set Combinations (GVSC) are used to define the specific value sets that are used by a ledger.

Dimension Administration. Additional meta-data related to display names and column associations is also maintained as part of the shared administration. These display names are fully multi-language (MLS) enabled.

Dimension Members and Hierarchies. This feature provides the ability to manage dimension attributes and levels, dimension members and dimension hierarchies, based on the selected ledger and related global value set combination.

The administration of these tasks is provided in a single location for all EPF-based products. The ability to provide shared administration features simplifies maintenance, and ensures consistency throughout the individual applications.


5.5.2.10. User Defined Signage Methodologies

EPF users have the option to manage their Management Ledger table data based on three different signage methodologies – Absolute Value, GAAP Standard, and Reverse GAAP. The signage for all extended account type belonging to the same standard account types (Asset, Liability, Expense, Revenue, Equity) is consistent. The definition of these signage methodologies provides the ability to select the one that is best suited to the individual customer, and their underlying reporting and data analysis needs.

5.5.2.11. Configurable Home Page

When users log into Release 12.0 applications, they are taken to an application level Home Page. Application level Home Pages automatically direct users to Workflow notifications requiring their attention, and also may contain useful links and messages that have been defined by system administrators. This feature provides a convenient mechanism for communications between application administrators and users, and timely response to critical Workflow notifications.

5.5.2.12. Tuning Options Administration User Interface

The EPF-based applications employ multiple Tuning Option features to facilitate the timely completion of production processes. Performance tuning option parameters used in application calculations may be defined based on general rule types or by the individual Business Rule within the application. Release 12.0 includes a new user interface to assist in defining these tuning options parameters, making the task easier and more efficient.

5.5.2.13. Rule Migration, Import and Export

Users generally define and test their business assumptions and methodologies in a development environment prior to promoting them to a production environment. EPF in Release 12.0 supports the business need to promote development rules to production. Each process includes the following:

Migrate. The migration process performs an automatic export and import of a selected Business Rule.

Export. The export process produces a file consisting of a copy of the Business Rule selected. This file can be imported manually with the import procedure.

Import. The import process allows a user to select a previously exported Business Rule version, and import it manually into the target database.

In addition, the Migrate/Import/Export process uses an open, XML-based format for easy interoperability within the applications and environments.

5.5.2.14. Multi-Dimensional Data Model

The common data model used by the Enterprise Performance Foundation provides 19 pre-defined dimensions, plus an additional 10 user defined dimensions. The availability of these 29 dimensions supports the varied modeling needs of any organization, and supports robust multi-dimensional


analysis and reporting. Users can configure the most appropriate dimensions pertinent to their specific business needs. The 19 pre-defined dimensions are listed below:

Analytic Dimensions

• Company Cost Center Org ID • Product ID • Channel ID • Project ID • Customer ID • Geography ID • Task ID • Activity ID • Cost Object ID • Calendar Period ID

Data Management

• Source System Code • Ledger ID • Dataset Code • Currency Code

Financial Characteristics

• Financial Element ID • Natural Account ID • Line Item ID

Financial Consolidation

• Intercompany ID • Entity ID

New features are included in Release 12.0 for managing dimension members and dimension member attributes, and for the creation and maintenance of hierarchies built on top of those dimensions that are of a hierarchical nature.

Please see Terminology in Section 5.5 of this document for Dimension definitions and related information.

5.5.2.15. Dimension Member Attributes

Release 12.0 includes a set of common, seeded dimension member attributes for use within the applications. The common data model provides the ability to define an unlimited number of user-defined attributes for each dimension. User defined attributes allow organizations to categorize data for their specific analysis and reporting needs.

5.5.2.16. Data Set Registration and Creation

In Release 12.0, data is identified by Datasets and Calendar Periods.


Datasets: Individual members of the Dataset Code dimension are referred to as Datasets, which enable classification of data such as but not limited to budget, actual or model statistics

Calendar Periods: Members of the Calendar Period ID dimension are referred to as Calendar Periods. Calendar Periods are defined at implementation, and can be defined on a daily, weekly, monthly, quarterly or any other time period basis.

The use of Data Sets and Calendar Periods provides great flexibility in the selection of data for modeling and production processing. Administered with the new dimension member and hierarchy management tools, the Dataset dimension also allows testing and development of alternative scenario results, and dimensional profitability measures on a ‘what-if’ basis prior to promotion to a production environment.

5.5.2.17. Dataset Groups

In order to process a Business Rule in Release 12.0, users define the combination of input and output Dataset Code dimension values to be used when the process is run. A single Business Rule can use multiple ‘input datasets’ as inputs to calculations, and write calculation results to a single ‘output dataset’. Dataset groups provide a single definition of one or more input datasets and the desired single output dataset to be used. This feature permits the creation of processing results using any combination of actual results or forecast (budgeted) amounts as inputs to the calculations.

The Dataset Group definition can incorporate references to data in Calendar Periods that are either before or after the actual Calendar Period being processed by a Business Rule. These “relative” offsets use period lead or lag specifications in the rule definition, avoiding the need to incorporate specific Calendar Period ID references in the Dataset Group definition as rules are run from one Calendar Period to the next Calendar Period.

5.5.2.18. Business Rule Definition and Management

The basic building block of the Oracle Financial Services Applications is called the “Business Rule”. Known as ‘IDs’ in earlier releases, Business Rules include methodology and assumption definition rules, data processing rules, and data and dimension sub-setting and organization rules known as Conditions and Hierarchies.

Release 12.0 incorporates a standard Business Rule framework employed across all Financial Services Applications and is designed to provide consistent rule organization and behavior regardless of the application being used. This framework includes several common interface and Business Rule management components:

• Business Rule Selector • Business Rule Page Flows • Workflow-Based Rule Approvals • Dependency Reporting • Versioning • User Level Application Preferences


A description of each of these components follows.

5.5.2.18.1. Business Rule Selector The Business Rule Selector serves as the common launch point for creating, updating and viewing Business Rule definitions, for initiating and monitoring workflow approvals and status, and for exporting Business Rules for import into other environments.

5.5.2.18.2. Business Rule Page Flows Business Rules in Release 12.0 use common page flows for typical rule based actions across the Enterprise Performance Foundation based applications. Common interface flows are used for rule and version creation, rule updates, viewing a rule, and rule duplication and deletion processes.

5.5.2.18.3. Workflow-Based Business Rule Approvals Users manage the interaction of Business Rules and production level data with a feature called Rule Approval. Rule Approval allows users to take advantage of an embedded workflow process facilitating the review and approval of Business Rules prior to their use in a production environment. This feature controls data write access to production level data, and ensures only those rules that are approved may write to production datasets. For instance, users test rules before they are promoted to production, and this ensures that “test” rules are never run in production until they are approved.

The additional Rule Approval function in Release 12.0 provides an added layer of security when trying to maintain the quality of production level calculation results, ensuring consistency and reliability of business critical data.

5.5.2.18.4. Dependency Reporting When managing Business Rules it is important to understand the inter-relationships among Business Rules. Within the EPF-based Applications this feature is called Rule Dependency. The Rule Dependency feature allows users to specify a Business Rule, and then track all other dependent rules. This ensures consistency of the calculated results, and supplies a way to provide audit-ability of the reported measures.

5.5.2.18.5. Versioning Users will be able to modify Business Rule assumptions over time by creating new versions of a rule. Previously, if users wanted to modify a rule from one period to the next while retaining a copy of rules used in production cycles, they had to create physically separate rules using naming conventions to tell them apart. In Release 12.0, Versioning allows users to alter business assumptions over time while retaining definitions used in their production process.

5.5.2.18.6. User Level Application Preferences Release 12.0 includes several seeded application preferences designed to assist users in the process of Business Rule creation and process submission. These include:


Security Folder. The Security Folder user preference is the default value when navigating to any Rule Selector or when creating a Business Rule.

Dataset Group. The Dataset Group user preference is the default value when submitting an individual rule for processing from the Rule Selector

Ledger. The Ledger user preference is the default value when submitting an individual rule for processing from the Rule Selector, as the default ledger in the Data Inspector, and as the basis for the value set definition when managing dimension members and hierarchies.

Calendar Period. The Calendar Period user preference is the default value when submitting a rule version from the Rule Selector for processing.

Effective Date. The Effective Date user preference is the default when submitting a rule for processing from the Rule Selector.

These preferences are saved for each individual user as a profile option at the user level. Use of these saved parameters simplifies the modeling process by letting the user set preferences once, and then re-use them for multiple tasks within the application.

5.5.2.19. Conditions

A Condition is a Business Rule used to create the filtering criteria that determines which information will be used in a calculation or view of data. Conditions use advanced set logic definitions as well as hierarchies to define the required criteria for processing rules. Conditions, like other Business Rules, support versioning and effective dating.

Condition Business Rules can be shared by other types of Business Rules within the same application or across different applications. This makes maintenance of the system easier and more efficient in cases where the same filter criterion is needed by multiple Business Rules.

5.5.2.20. Data Inspector

The Data Inspector in Release 12.0 lets users query, view and update fact table data on an adhoc basis from within Release 12.0 EPF application interfaces. This convenient feature enables users with appropriate security to more quickly view and understand process inputs and drivers, as well as application process outputs written to the system data tables. It also provides an easy way to make simple changes to underlying data in a quick and efficient manner.

Note: Please note that the Data Inspector allows the management of data on a row-by-row basis. It does not provide the ability to perform bulk updates. In addition, Data Inspector does not have versions.

5.5.2.21. Auditing and Data Integrity

Release 12.0 includes several features designed to preserve the overall integrity of fact table data while making it easier for users to audit calculation output and identify the Business Rules that created the results. These features, which are discussed below, include:


• Production Datasets • Process Locking • Rule Auditing • Effective Dating & Versioning

5.5.2.22. Production Datasets

Production datasets provide a mechanism for identifying data used as inputs to calculations or produced as outputs by Business Rules in a production environment, and distinguish such production data from data used or created in testing and validation or analytical what-if processes. All data loaded into the system or created by application processing is stored in a dataset that is classified as either a production dataset or a non-production dataset. Production datasets are automatically restricted to receiving calculation results only from approved rules. This feature controls write access to the production level data and ensures only those rules that are approved may write to production datasets. Users may test rules before they are promoted to production, and this ensures that those “test” rules are never run in production until they are approved.

5.5.2.23. Process Locking

Users require a high degree of data integrity in their analytical management systems. In order to preserve the integrity between calculation results and the rules used to generate those results, a feature called ‘Process Locking’ is provided in Release 12.0. This feature preserves the integrity of the business assumptions used to generate results in the production environment. Once a rule has been executed, it is ‘Process Locked’ and the results must be removed before that rule may be changed, thus ensuring that the connections between the rule and production calculation results are preserved for audit purposes.

5.5.2.24. Rule Auditing

A powerful audit facility is provided in Release 12.0 to view rule data sources, drivers and contribution amounts. This audit feature provides the ability to view the results of Business Rules and to trace calculation results back to the Business Rules that created those results. This feature makes it easier for users to review and validate Business Rule processing results in a test environment, and provides users with a mechanism for viewing definitions and inputs used to create performance measure components.

5.5.2.25. Effective Dating & Versioning

Retention of rule definitions used in production processes is a requirement from an audit trail perspective as well as to support new rule auditing functionality included in the release. When users create versions of a Business Rule, they specify start dates and end dates covering the time periods for which the Business Rule will be processed. Validations are automatically performed in the creation and update processes to ensure that versions of a rule do not have overlapping effective date ranges. Provided as part of the previously mentioned rule versioning functionality, this ‘Effective Dating’ mechanism is also used to determine which version of Business rule was actually used to create processing results for any given time period.


5.5.2.26. Seeded Reports

A number of seeded reports produced with the Oracle Discoverer reporting application have been included in this release of the Oracle Enterprise Performance Foundation. For full details please refer to the User Guide.

5.5.2.27. Integration with Web ADI

This feature provides the ability to load dimension members or hierarchies via a spreadsheet interface in the Dimension and Hierarchy Manager (DHM). The Web ADI feature utilizes the dimension member loader internally. This feature improves the ease of use in relation to the data loading process by giving users a simple spreadsheet interface to load and update multiple dimension members in one step.

5.5.2.28. Functional Dimension Definition

This feature allows the users to define extra metadata that provides “functional” names for a given dimension. For example, shipping address may be defined as User Dimension1, but point to column “Purchase Address” on one table, and “Ship Address” on another table. With the functional dimension definition, users can refer to “Shipping Address” and determine the appropriate column on each table. For this release, this feature will be used exclusively by users of Oracle Enterprise Planning and Budgeting to define the extra metadata specific to their needs.

5.5.2.29. Loader Rules

In release 12.0, users are able to load multiple periods of data into fact tables, as well as combine dimension, hierarchy and data loads into a single processing run using loader rules. This feature improves user productivity in loading dimensions, hierarchies and data by providing a wrapper around the existing functionality. The loader rules also automatically determine the appropriate execution mode to pass to the existing concurrent programs, so the user does not need to manually determine if they should be performing snapshot, incremental or error reprocessing.

5.5.2.30. Client Data Table Loader Replacement Mode

This feature provides a new execution mode that allows users to do a simple replacement of data in any of the client data tables, without performing an “undo” of a previous run. Thus, if a set of data loaded into a client data table is incorrect, users may simply reload and replace the existing data. This execution mode is available for all responsibilities that include the Client Data Table Loader as part of the assigned program request group. Client data is either replaced or new data is added; no data is deleted as part of this process. This feature also includes a new business event to which users may subscribe for notifications when a replacement mode load completes successfully.

5.5.2.31. Fact Table Dimension Member Error Report

This feature provides the ability to scan a fact interface table prior to calling data loaders to produce a report of potential dimension member errors during the load


process. This report may be defined on any client data table, including user-defined tables. Using this feature, the users have the ability to track and fix multiple errors before calling the data loader.

5.5.3. Terminology

Term Definition

Activity ID Activity ID will be a composite dimension in the 12.0 Release comprised of the Task ID plus one or more additional optional dimensions. An activity will be defined as a repeatable action performed within an organization. Activities will be accomplished on a routine basis.

Application Preferences Accessible via the Application Preferences link at the top right of all application interfaces, application preferences will allow users to specify session defaults for Security Folder, Ledger, Dataset Group, Calendar Period and Effective Date. Application Preferences will generally replace the Configuration ID from previous OFSA releases.

Business Rule The basic building block of the 12.0 Release of Profitability Manager will be called the ‘Business Rule’. Business Rules will include Methodology and assumption definition rules, Data processing rules, and Data and dimension subsetting and organization rules known as Conditions and Hierarchies. Business Rules will replace ‘IDs’ from previous OFSA releases.

Calendar Period Calendar Period will be the Profitability Manager 12.0 Release representation of Time Periods. Calendar Periods will have start dates and end dates that are defined at implementation, and can represent a single day, a month, a quarter, a year, etc. Calendar Period will replace ‘As Of Date’ from previous OFSA releases.

Channel ID A dimension that will indicate the Distribution and Delivery Channel. Company Cost Center Org ID The Company Cost Center Org ID will be the Organizational Unit

dimension, and will typically be defined as the concatenation of Company and Cost Center values from the General Ledger. This dimension will correspond to the seeded Organizational Unit ID dimension in previous OFSA releases.

Condition A Condition will be a Profitability Manager Business Rule where users will define filtering criteria to be used in processing. Conditions will replace Data, Group and Tree filters from previous OFSA releases.

Cost Object A Cost Object will be any product, service, customer, contract, project, process, or other work unit for which a separate cost measurement is desired.

Currency Code The dimension that will designate the ISO Currency Code value for Entered Currency balance amounts.

Customer ID The Customer ID dimension will identify individual customers associated with balances or transactions.

Customer Account Tables Customer Account Tables will store data on individual customer accounts. Customer Account Tables will replace ‘Instrument Tables’ from previous OFSA releases

Data Inspector The Data Inspector will be a type of Business Rule. The Data Inspector will provide users with a mechanism for displaying and modifying client data stored in the database and will allow data entry into client data objects. The Data Inspector Rule will replace the Data Verification ID from previous OFSA releases


Term Definition

Dataset Code A Dataset will be a ‘bucket’ or grouping of statistical and/or monetary data that is manually entered, imported, or created by a calculation. Dataset Code will be a dimension. Dataset dimension members will have attributes indicating whether a dataset represents budget, actual or encumbrance data, and whether the data identified by a specific dimension member represents production data, etc.

Dataset Group The Dataset Group will be a Business Rule used to define the combination of dataset dimension input value(s) and the target output value to be used when a process is run. When processing a Business Rule, users must specify the Dataset dimension members to use as inputs to a process as well as what dimension member to use when writing calculation results.

Dimension A Dimension will be a member set, also known as a ‘List of Values’ (LOV), identified by a code, with a translatable name and description. This replaces ‘Leaf Field’ from previous OFSA releases.

Dimension, Simple A Simple Dimension will be a dimension that serves only as a list of values. Simple dimensions will not have attributes, nor will they have hierarchies. Simple dimensions (like all Dimensions) may serve as attributes of other dimensions.

Dimension, Attributed An Attributed Dimension will be a dimension whose members may have other properties or qualifiers. These properties/qualifiers will be known as ‘dimension attributes’. Note that while Attributed Dimensions may also have hierarchies, they will not be required to do so. Certain Attributed Dimensions may not have any hierarchies (examples – Ledger dimension, Financial Element dimension).

Dimension Member The values used to populate dimension columns in account/transaction/statistical tables will be referred to as ‘Dimension Members’. Such values will represent the individual organizations, distribution channels, products, etc., of which each dimension is comprised. Both ‘lowest level’ and ‘node level’ values will be considered to be Dimension Members.

Dimension Attributes A dimension attribute will be a property or qualifier that further describes a dimension member. An attribute may be anything, such as a Date, a number or a character string. For example, the ‘Geography’ dimension may have an attribute ‘Population’ that will designate how many people live in that area. Each member of the Geography dimension therefore will have an associated population. The Common Data Model will consider Dimension Attributes to be a completely separate concept from Dimension Identifiers (described below). Dimension Attributes will replace ‘Leaf Setup’ from previous OFSA releases.

Dimension Hierarchy Rule Dimension Hierarchy Rules will be Business Rules. A hierarchy definition is a structure of dimension members organized by parent/child relationships. Users will define hierarchical structures for analytical dimensions for use in processing and reporting across the CPM applications. Dimension Hierarchy Rules will replace the ‘Tree Rollup ID’ from previous OFSA releases.

Effective Date When some types of Business Rules are being defined, users will specify other dependent Business Rules, such as a Condition Rule or Hierarchy Rule, to be used when the Rule being defined is processed. In this circumstance, the Effective Date will be used to identify which Rule Version of the dependent Rules to use when submitting the main rule for processing from the Rule Selector..


Term Definition

Entered Currency The Entered Currency will be the currency in which individual source transactions and account balances are denominated.

Entity ID The Entity ID dimension will be used in consolidation and can represent legal and/or other types of entities.

FEM Balances The new-shared ledger data table will store GL data and certain types of application processing output. The FEM Balances table will replace the ‘Ledger Stat’ table from previous OFSA releases.

Financial Element ID The Financial Element ID dimension will indicate the type of data represented by a given row in the management ledger table (FEM Balances), such as Average Balance, Ending Balance, Average Rate, etc. This dimension will be the same as the Financial Element ID Leaf Field in the 4.5 OFSA release.

Functional Currency The Functional Currency will be the principal currency used to record transactions and maintain accounting data within Multiple Reporting Currencies. The functional currency will usually be the currency in which users perform most of their business transactions. Users will specify the functional currency at the Set of Books level.

Geography ID The Geography ID dimension will indicate the Geographic location of an account or measure. This dimension will replace the Geographic Location Code in previous OFSA releases.

Global Value Set Combinations Global Value Set Combinations (GVSCs) will be related to the chart of accounts in the Oracle General Ledger, and will specify the combination of individual dimension value sets that will be utilized by a Ledger (Set of Books).

Hierarchy A hierarchy definition will be a structure of dimension members organized by parent/child relationships, for a designated effective date range. ‘Hierarchy definition’ is synonymous with ‘hierarchy version’, in that it is one instance of the hierarchy.

Intercompany ID The Intercompany ID dimension will be a dimension used to track inter-company charges and payments. The dimension will be sourced from the Company Cost Center Org ID dimension (meaning it will have the same List of Values as the Company Cost Center Org ID dimension).

Ledger ID The Ledger ID dimension will replace the Set of Books leaf field in previous OFSA releases.

Line Item ID The Line Item ID dimension will be used to summarize or further define a set of accounts and or statistics. In addition, the Line Item ID dimension will be used when defining Business Rule assumptions in Oracle Transfer Pricing.

List of Values (LOV) The list of the available values in a column or a dimension. Can be displayed in any format (drop down list box, combo box, etc.). Can be applied to any related column.

Management Ledger Refers to the 12.0 release FEM_BALANCES table, which will replace the Ledger_Stat table in previous OFSA releases.

Mapping Rule Mapping Rules will provide the ability to move or allocate data amongst or between different dimension values. Mapping Rules will replace ‘Allocation IDs’ in previous OFSA releases.

Natural Account ID The Natural Account ID dimension will be the representation of General Ledger account, and will be used to identify the accounting treatment of data (Revenue, Expense, Asset, Liability, Equity). This dimension will replace the seeded GL_ACCOUNT_ID Leaf Field in previous OFSA releases.

Product ID The Product ID dimension will be the representation of an individual product or product group, and will generally describe the items and services that a company provides to its customers.


Term Definition

Project ID The Project ID dimension will be used to track data by individual projects. For example, Oracle likes to track Consultant operating expenses by individual customer implementation projects that the Consultants are working on.

Request A Request will be a Concurrent Manager mechanism for submission of a single process job.

Request Set A Request Set will be a Concurrent Manager mechanism for submission of job ‘batches’. Together with Rule Sets, Request Sets will replace the ‘Batch ID’ in previous OFSA releases.

Responsibility Security Assignments made to users that specify which applications, data and functions a user will be able to access.

Rule Audit Rule Audit refers to a new audit facility that will be provided to view Business Rule data sources, drivers and contribution amounts. The feature will provide the ability to view Business Rule processing results and to trace calculation results back to the Business Rules that created them.

Rule Selector The Rule Selector will be a common interface across CPM applications, and will serve as a launch pad for Business Rule related actions, including rule create, update, view, delete, duplicate, export, migrate and submit for approval activities.

Rule Set The Rule Set will be a new feature that will provide the ability to group, sequence and launch a collection of Mapping Rules in a batch-like mode. Together with Request Sets, this will replace ‘Batch ID’ ifrom previous OFSA releases.

Rule Version A Rule Version will store the definitional content of a Business Rule. A given Business Rule can have multiple effective dated versions.

Security Folder Security Folders will be containers used for storage of Business Rules, and will be used to control and grant user access to rules created within the defined security folder. Replaces ‘Folder’ from previous OFSA releases.

Signage Methodology This release will provide three new data signage options to employ when loading or creating data in the Management Ledger table – Absolute Value, GAAP Standard and Reverse GAAP. The Absolute Value method will correspond to the typical treatment, where all balance sheet and income statement account data (excluding contra accounts) is loaded into the database with positive signage. The GAAP Standard options will load data with normal debit (positive) and credit (negative) balance signage, and the Reverse GAAP option will reverse debit and credit balance signage.

Source System Code Source System Code will be a dimension representing the source system from which data originated (an individual record in the database). For example, this code can represent a General Ledger system for ledger data loads, or an individual CPM application for rows created by that application.

Task ID The Task ID dimension will describe the type of work performed in a process. Tasks will usually be combined with the Company Cost Center Org ID dimension to show how the same task is performed across multiple departments.

Value Set Related to the chart of accounts in the Oracle General Ledger, a Value Set will be a list of dimension members identified for use in a dimension at the Ledger or Set of Books level.


5.6. Oracle Enterprise Planning and Budgeting

5.6.1. Overview

Oracle Enterprise Planning and Budgeting controls the business processes of planning, budgeting, forecasting, monitoring, and analysis, integrating performance management with personal accountability.

5.6.2. Features

5.6.2.1. Usability Enhancements

5.6.2.1.1. Import Budgets from Microsoft Excel Worksheets can be exported to Microsoft Excel with tracking enabled, and then imported back into Enterprise Planning and Budgeting. This allows the user to work on a budget offline in Microsoft Excel, but still provides the central control of target validation and the approval mechanism.

5.6.2.1.2. Professional Quality Reporting Briefing books containing multiple reports with text commentary and pictures can be automatically published with the latest data to specific users as part of the business process. This allows, for example, the budget book to be updated and automatically distributed once the budget numbers have been finalized.

5.6.2.1.3. Budgeting in Multiple Currencies Currency conversion rules and strategies can be managed centrally while still allowing individual analysts to choose whether to enter budgets in multiple currencies or a single currency. Currency conversion is automatic on consolidation up the organization.

5.6.2.1.4. Additional Calculation Templates The conditional If…Then…Else template allows tailoring of the business model based on the division or region. The Days Outstanding template can be used to track and manage the day’s sales outstanding or inventory turns. Other enhancements allow multi-step calculations to be created in a single step.

This feature was first released in Oracle Enterprise Planning and Budgeting Mini-pack B (11i.ZPB.B).

5.6.2.2. Scalability Enhancements

5.6.2.2.1. Improved Security Management Access to a view can be automatically restricted or relaxed as part of the business process, for example during the month end close. Security API’s allow programmatic updating of data ownership, read access, write access,


and metadata scope to support large and frequent changes to user access and control.

5.6.2.2.2. Business Area Business areas allow the business processes and user communities of discrete operations to be managed separately. Multiple sets of books that share the same chart of accounts can be included in the same business area; each chart of accounts can reside in its own business area. By choosing what to include in a business area, different versions of hierarchies can be tracked separately.

5.6.2.2.3. Business Process Management Additional options when defining the business process rules support organizational complexity, with enhancements for value-based hierarchies, varying Line Item dimensionality, loading pre-solved data, and aggregation up the Line Item hierarchy. A new API allows you to initiate a business process programmatically.

5.6.2.2.4. SQL Access to Shared Data Integration of planning data with other systems, such as secure operational defense systems, has been enabled with the exposure of a SQL metadata layer on top of the shared data. This layer can also be used to write data back to the Enterprise Performance Foundation.

This feature was first released in Oracle Enterprise Planning and Budgeting Mini-pack B (11i.ZPB.B).


5.7. Oracle Financial Consolidation Hub – New Product

5.7.1. Overview

Oracle Financial Consolidation Hub is a new product with this release.

Oracle Financial Consolidation Hub integrates data from disparate financial systems to perform one-touch statutory and management consolidation. Oracle Financial Consolidation Hub is a key component of Oracle Corporate Performance Management - a comprehensive solution for improving performance across all facets of your business. Unlike many solutions that stand apart from your transaction systems and require additional software, hardware, implementation and integration, Oracle Corporate Performance Management is core to the Oracle E-Business Suite – one solution, one data model, one view of your business.

5.7.2. Features

5.7.2.1. Enterprise View

Oracle Financial Consolidation Hub creates an enterprise view of the firm's financial position by integrating multiple subsidiaries and investments from a variety of countries with disparate accounting systems, ownership structures, charts of accounts, and currencies. Optimized for both statutory and management requirements, Oracle Financial Consolidation Hub provides a foundation to establish and evaluate enterprise business strategy, allowing the finance organization to base planning, forecasting, and analysis on accurate, timely, corporate-level information.

5.7.2.2. Unity of Statutory and Management Results

Oracle Financial Consolidation Hub enables users to perform both legal and management consolidation within a single system, allowing you to leverage a common tool for both purposes and ensuring that your management numbers will always reconcile with your legal results. The same set of consolidated financial information supports multiple perspectives, satisfying the needs of a wide range of users such as a general manager responsible for a group of products, a country-specific controller responsible for the finances of a geographic region, or a corporate controller responsible for fulfilling federal regulatory requirements.

5.7.2.3. Consolidation Versatility

Oracle Financial Consolidation Hub enables users to consolidate from any system using spreadsheet-based loaders, or open interfaces. You can submit data from any source, on any frequency, with integrated transformation and validation. Information is automatically validated and standardized to a common set of values, while providing complete audit trails from consolidated totals to original source balances.


5.7.2.4. Entire Consolidation Cycle Monitored

With Oracle Financial Consolidation Hub, users are able to grant as much autonomy as deemed appropriate to your subsidiaries and affiliates, while resting assured that Oracle's software will bring everything together in a consistent, rational way. Each subsidiary can submit its subconsolidation independently, and the system will ensure that all information is consolidated in accordance with corporate standards and practices.

5.7.2.5. Automated Workflow and Exception Handling

Oracle Financial Consolidation Hub ensures that the appropriate people are kept well informed of situations that require their attention, such as an intercompany mismatch or an incremental data submission. Proactive notifications ensure that you can close your books in an orderly fashion rather than having to put out fires during the critical last few days of the period.

5.7.2.6. Dynamic Ownership Structures

Oracle Financial Consolidation Hub tracks your acquisitions and disposals and updates your consolidation hierarchies and intercompany relationships automatically. It generates the appropriate elimination entries to handle goodwill, investment in subsidiary, subsidiary equity and pre-acquisition profitability, as well as any other necessary calculations. Acquisition and disposal transactions are date effective, so you can always view your consolidation hierarchies and consolidated results at any point in time.

5.7.2.7. Analytical Reporting Capabilities

Oracle Financial Consolidation Hub enables finance and business managers to report and analyze across multiple business dimensions. You can perform on-the-fly inquiries, explore cause and effect, and perform what-if analysis, via reports and graphs. Reports can be shared with other people in the organization without the risk of violating security rules because Financial Consolidation Hub automatically filters the data displayed based on the recipient's security access.

5.7.2.8. Audit Entries from Every Stage of Consolidation

Oracle Financial Consolidation Hub enables you to audit entries from every stage of the consolidation process for every subconsolidation, subsidiary, and affiliate within your enterprise. Consistent information is accessible by all authorized users involved in the consolidation.

5.7.2.9. Accessibility of Complete Consolidation History

Oracle Financial Consolidation Hub automatically archives the results from each consolidation submission, allowing you to see the evolution of your consolidated balances.

5.7.2.10. Best Practices Automated

Oracle Financial Consolidation Hub enables you to automate as much of the consolidation process as you choose, from the initial data submission to final


reporting and analysis. A simple, extensible framework allows you to tailor the steps in your consolidation cycle, whether the same process should be applied across your entire hierarchy or whether special procedures are necessary for different sub-consolidations. This allows you to consistently codify standard and repeatable business processes, which reduces manual intervention and minimizes opportunities for error and misstatement.

5.7.2.11. Complex Calculations and Eliminations Handled

Oracle Financial Consolidation Hub supports complex ownership structures and automatically applies the proper consolidation methods and eliminations. Rules for automating eliminations and adjustments are configured through a simple user interface. The results of each consolidation rule are available for confirmation and auditing at every level and for every subsidiary.

5.7.2.12. Global Consolidation Requirements Managed

Oracle Financial Consolidation Hub's flexible rule capabilities let you reflect the different standards that govern your international operations. Additionally, Financial Consolidation Hub provides support for foreign currency handling procedures in strict accordance with FAS 52 and IAS 21.

5.7.2.13. Internal Controls Manager Integration

Oracle Financial Consolidation Hub is fully integrated with Oracle Internal Controls Manager. Internal Controls Manager enables companies to document, test, monitor, and certify ongoing compliance with Sarbanes-Oxley Section 302 and 404 as well as other key compliance-related legislation. It provides the vital link between business processes and the affected financial statements. The integration between the two products allows you to review and assess the adequacy of controls in your enterprise in conjunction with your consolidation process.

This feature was first released in Oracle Financial Consolidation Hub Mini-pack D (11i.GCS.D).

5.7.2.14. Excel Add-in and Oracle General Ledger Drilldown

Oracle Financial Consolidation Hub provides a convenient spreadsheet interface on top of the analytical reporting capabilities of Oracle 9i and 10g. You can slice and dice your consolidated results in Excel, taking advantage of familiar Excel formatting and calculations, while maintaining a live link to the consolidated results in your database. From Excel you can also drill down to your operational data, and if you are using Oracle General Ledger, you can drill into General Ledger's Account Analysis and Drilldown to view journal details and the underlying subledger transactions. You can also drill to General Ledger from the consolidation trial balance report, data preparation report, and intercompany matching report. This feature leverages the Oracle XML Publisher technology.



5.7.2.15. Concurrent Programs for Reporting

Oracle Financial Consolidation Hub provides the following new reports:

• The intercompany matching report helps you reconcile discrepancies between the two parties in intercompany transactions

• The value mappings report helps you identify any values in your local charts of accounts which have not been mapped to your consolidation chart of accounts

• The hierarchy listing report shows you the hierarchical structure of an enterprise.


5.7.2.16. Line Item Intercompany Maps

Users can map line items to members in the intercompany dimensions. This is convenient when you use specific line items to keep track of intercompany transactions among your subsidiaries. During consolidation intercompany transactions are then automatically eliminated according to the intercompany rules that you define.


5.7.3. Terminology

Term Definition

Eliminations The process of preparing consolidated financial statements involves more than the simple aggregation of balances between a parent entity and its children. Entries for procedures such as the removal of intercompany activity are required and are referred to as eliminations.


5.8. Oracle Financials for Asia Pacific

5.8.1. Overview

There are a number of Globalization features that provide functionality to manage financial requirements for specific countries or groups of countries/regions of the world. This section covers the Globalization features that are available for Asia Pacific.

5.8.2. Features

5.8.2.1. Korean Withholding Tax

You can setup, calculate, and report on withholding taxes that are applied to certain types of income payments to suppliers. This feature has been updated to uptake the new Legal Entity model, Multi-Org Access Control and Payables’ Invoice Lines. Those reports can be run both from legal (passing legal entity as parameter) or business (passing OU as parameter) perspectives.

5.8.2.2. Taiwan Transaction Numbering

To meet the Government Uniform Invoice requirements, you can apply government issued invoice numbers to invoices so that company revenue can be tracked. This feature has been updated to uptake the new Legal Entity model, new Ledger model and Payables’ Invoice Lines. The setup step to associate Transaction Batch Sources with Transaction Batch Types is no longer needed in this release.

5.8.2.3. Asia Pacific Reports

Country specific reports to support tax reporting and other functionality are provided in a number of countries and these have been converted to Oracle XML Publisher templates with underlying extracts.



5.8.2.5. Legal Entity Architecture

Legal Entity architecture, which is new in this release, provides users with the ability to model an enterprise’s legal organizational structure and define rules and


attributes specific to legal entities. With adoption of the Legal Entity architecture in transactions such as in Oracle Payables, many of the globalization features, such as the Korean Withholding feature, now use the context of legal entities for statutory and other reporting.


5.9. Oracle Financials for EMEA

5.9.1. Overview

Oracle Globalizations provides a single, seamless solution to allow organizations to compete globally, while managing their business locally.

In this release, VAT Reporting for EMEA has been re-engineered to allow current localized features to become available for all EMEA customers. This enables users to use Tax Calendars, Tax Box Allocations and Preliminary & Final reporting.

5.9.2. Features

5.9.2.1. EMEA VAT Reporting

All existing Tax Reports have been converted to XML Publisher templates with underlying extracts being consolidated into the functional classifications of Audit, Journal, Turnover and Summary reports.

Tax Calendars and Periods have been defined and used to control VAT Processing and report submission.

Tax Boxes relating to the Tax Authorities specifications have been defined and assigned to various tax attributes. VAT Reports allocate transactions according to the tax box definitions and provide information grouped as required by the local Tax Authorities.

Preliminary reporting allows a report to be run a number of times in order to cater for transaction amendments. Final reporting prevents a transaction from being reported again and supports report auditing. The feature also supports correction reporting.

5.9.2.2. EMEA Country Specific Reports

The following reports are included in this release:

• VAT Reconciliation Detail Final Report, Austria • VAT Reconciliation Summary Final Report, Austria • AR Tax Register Report, Israel • VAT AP Detailed Report, Israel • Vendor/Incoming Invoice Tax Report, Croatia • Customer/Outgoing Invoice Tax Report, Croatia • Israeli VAT File Generation 835 NOT Related • Israeli VAT File Generation 835 Related • Israeli VAT Summary Report to Tax Authorities • Israel - Withholding Tax File to the Tax Authority • Israel - Withholding Tax – Summary/Detail Report • Israel - Withholding Tax – Reconcile Report • Israel - Withholding Tax – Annual certificates to Vendors


5.10. Oracle Financials for India

5.10.1. Overview

Oracle Financials for India provides clients in India with a comprehensive solution to comply with the India specific tax requirements as specified by Central Excise, Customs, Sales Tax and VAT, and Tax Deduction at Source (TDS)(levied under Income Tax Act). Oracle Financials for India also provides valuable information that can be used for statutory and management reporting.

Oracle Financials for India uses its own tax engine, for handling taxes applicable across ‘Procure to Pay’ and ‘Order to Cash’ transactions.

In Oracle Financials for India, taxes are defaulted based on the pre-determined setup (Tax Defaulting). Tax amounts are calculated based on precedence such as transaction base value, tax on tax, or assessable value as specified by tax authority (Tax Calculation). The Tax Amount is considered for inventory valuation, recoverability and accounting based on the pre-determined recoverability and accounting rules (Tax Accounting and Recoverability). Details of recoverable tax amount are recorded as part of the repository (Tax Recording). This information can further be used to calculate the final tax liability arising on settlement at the end of the tax period (Tax Settlement) and for statutory reporting (Tax Reporting).

5.10.2. Features

5.10.2.1. CENVAT Rules 2004 Changes

Credit of taxes paid on inputs and input services were allowed in Central Excise and Service Tax regimes respectively. The Central Government has notified the new CENVAT Credit Rules, 2004 that allows cross regime credit of taxes paid.

For example, Credit of Service Tax paid on input services will be allowed to be set-off against the Excise liability arising on production of goods, and vice-versa.

This is a change in the existing statutory requirement. The changes came into effect from 10-September-2004.

Education Cess is an additional tax brought in by Union Budget 2004. It works as a surcharge on its related primary tax. Education Cess has to be treated similar to the related primary tax

Following are the features that are new with the Service Tax enhancement:

• Service Tax Registration • Defaulting of Taxes on Outside Processing Transactions • Tax defaulting for Bill only invoices created for Sale of Services • Service Tax Accounting • Distribution of Input Service Tax Credit • Maintenance of Registers for input services • Periodic Reports/Returns


• Enhancements to cover Education Cess on taxes

This feature was first released in standalone patch # 4239736.

5.10.2.2. Tax Deducted at Source (TDS) Thresholds

Amendments brought in by Union budget 2004 mandate applicability of TDS for a supplier invoice, either when the Total Invoice amounts for the financial year exceeds the Cumulative Invoice Amount Threshold or when a Invoice amount exceeds the Single Invoice amount threshold.

The amendment to section 194 C of the Income Tax Act requires tracking of the threshold on single invoice and cumulative invoice basis.

Currently, Oracle Financials for India supports only one threshold limit (either single invoice or aggregate of all invoices) per section per Supplier Site.

Further, the surcharge on a TDS Rate can be specified while defining TDS Tax Code. Whereas a surcharge would be applicable only when the purchases made from the Supplier Site exceeds the specified Threshold limit, Oracle Financials for India does not handle such cases requiring selective applicability of surcharge, based on the Threshold limits.

The Maintaining TDS Threshold feature has been extended to uptake tracking requirement based on multiple thresholds.


5.10.2.3. Value Added Tax (VAT)

VAT replaced all the state sales taxes in India on April 01, 2005. Under VAT Regime, an organization can avail credit arising from Input Tax paid on Purchase of goods. Thus, tax liability shall be only on Value Addition at each stage of Sale made within the State.

Oracle Financials for India caters to VAT requirements. This enhancement includes the following features:

• Define new Taxes required for the VAT regime • Provision to define Value Added Tax Regime • Provision to define VAT Registration • Provision to assign Organizations • Provision to define VAT Authority • Provision to define VAT Invoice sequence • Provision to define Item Classification • Provision to define VAT Claim Terms • Defaulting & Calculation of VAT Taxes on purchase and sales transactions • Provision to define VAT Assessable Price Lists and use them in calculating

VAT taxes on Purchase and Sales transactions • Facility to defer recovery of VAT Taxes • Facility to Claim VAT while creating Receipt • Provision to Unclaim non-recoverable VAT Taxes • Provision to stagger VAT Recovery on purchase of Capital Goods


• Provision to generate VAT Invoices on Sale transactions • Repository to record Input/Output VAT Tax details for each transaction • Feature to create VAT adjustment entries • Feature to settle VAT Taxes


5.10.2.4. DFF Elimination

In previous releases, Oracle Financials for India utilised 11 context specific Descriptive Flexfields (DFF’s) to achieve certain tax-related functionality. In release 12.0, these DFF contexts have been eliminated by having alternative setup screens or by using Global Descriptive Flexfields to handle these requirements.



Oracle Financials for India span base application modules such as Oracle Purchasing,, Oracle Payables, Oracle Order Management, Oracle Receivables etc. The transactions carried out in these modules are secured based on the MOAC security model. Oracle Financials for India follows the same model.

5.10.2.6. AP Invoice Lines

Oracle Payables has incorporated Invoice Lines into the invoice model. Invoice Lines is a key architectural change, which enables Oracle Payables to better model the paper or electronic business document yet maintain key features that exist at the invoice distributions level.


Oracle Subledger Accounting provides tools that allow users to meet multi-gaap, corporate, and fiscal accounting requirements. With a flexible tool called Accounting Methods Builder, users can determine the accounts, lines, descriptions, summarization, and dates of their journal entries. Users can also add detailed transaction information to journal headers and lines. Detailed subledger accounting journals will be available for analytics, auditing, and reporting. They are summarized, transferred, imported and posted to Oracle General Ledger. For more details, please see the Oracle Subledger Accounting section of this document.

Oracle Financials for India users need to set E-Business Tax for ‘Order to Cash’ flow and Receivables transactions.


5.10.2.8. OPM Inventory Convergence

OPM Inventory has been merged into Discrete Inventory in R12.0 and specific functionality related to OPM Inventory has been made available in the Discrete Inventory module. This impacts products such as Order Management, Purchasing, Inventory, Costing etc., as well as Oracle Financials for India. Oracle Financials for India includes functionality for Excise Register maintenance and costing in OPM inventory. Changes made in these products impacts the functionality provided by Oracle Financials for India at setup and transaction level. Oracle Financials for India has been enhanced to uptake these changes in setup and transactions.

5.10.3. Terminology

Term Definition

Service Tax Service tax is an indirect federal tax on specific services. The responsibility of payment of the tax is on the service provider.

Central Excise Central Excise Duty in India is generally defined as a tax on articles produced or manufactured in the country that administers the taxes and is intended for consumption within the same country.

CENVAT Taxes imposed under Service Tax and Central Excise Regime that the service provider / manufacturer is allowed to take credit for.

Education Cess Surcharge Tax on taxes levied by Central Government of India. This tax has been introduced through the Finance Act of 2004.


5.11. Oracle Financials for Latin America

5.11.1. Overview

There are a number of Globalization features that provide functionality to manage financial requirements for specific countries or groups of countries/regions of the world. This section covers the Globalization features that are available for Latin America.

5.11.2. Features

5.11.2.1. General Ledger Inflation Adjustments

Inflation Adjustments allows you to maintain and report on historical balances and inflation-adjusted in General Ledger. This is required in Latin American countries such as Argentina and Chile. This feature has been updated to uptake the new Ledger and Legal Entity models. Users are now able to work with different primary ledgers using the same responsibility.

5.11.2.2. Receivables Latin Tax Engine

This feature allows you to setup, calculate and report taxes to meet taxation requirements in Latin American countries such as Argentina, Brazil, Chile, and Colombia. The Latin Tax Engine is a regional feature with many generic features, but there are some further country-specific setup steps to configure it to each country’s specific requirements. This feature has been updated to uptake the new Legal Entity model and Multi-Org Access Control. A few Global Descriptive Flexfields associated with Items, Customers and Memo Lines have been converted into named columns. In addition, the current tax setup in Receivables system Options, has been redesigned in Oracle E-Business Tax’s Applications Tax Options.

5.11.2.3. Latin America Extended Withholding

Latin America Extended Witholding allows you to setup, calculate and report withholding taxes to meet taxation requirements in Argentina and Colombia. There are some country-specific setup steps to configure it to each country’s specific requirements and country specific reports. This feature has been updated to uptake the new Legal Entity model, Payables’ Invoice Lines, Multi-Org Access Control and Oracle Payments. Extended Withholdings have been fully integrated with Payables for withholdings at invoice validation time and quick payments, and with Oracle Payments for withholdings on payments batch requests.

5.11.2.4. Brazil Receivables Bank Transfer

This feature has been updated to uptake the new Legal Entity model, new Ledger model, Subledger Accounting model, Multi-Org Access Control and Consolidated Bank Accounts. Users are able to define accounting rules in SLA for the accounting of Receivables bank transfer transactions.


5.11.2.5. Latin America Reports

Country specific reports to support tax reporting, accounting reporting, and payment formats are provided in a number of countries and these have been converted to Oracle XML Publisher templates with underlying extracts.



5.11.2.7. Legal Entity Configurator

Legal Entity architecture, which is new in this release, provides users with the ability to model an enterprise’s legal organizational structure and define rules and attributes specific to legal entities. With adoption of the Legal Entity architecture in transactions such as in Oracle Payables, many of the globalization features now use the context of legal entities for statutory and other reporting. Users now have a single and standardized business flow to define legal entities for any country.


5.12. Oracle Financial Services Accounting Hub (FSAH) – New Product

5.12.1. Overview

Oracle Financial Services Accounting Hub is a new product, initially released June 2005.

Oracle Financial Services Accounting Hub leverages the features of Oracle Oracle Subledger Accounting and Oracle General Ledger to address the specific requirements of the financial services industry.

Oracle Financial Services Accounting Hub allows users to efficiently create detailed, auditable, reconcilable accounting for a variety of source systems, while consistently enforcing accounting policy. It also includes a single, enterprise wide accounting repository with configurable analytic information. This allows users to simultaneously meet diverse corporate, management and reporting requirements. Financial Services Accounting Hub serves as the information backbone for finance and performance management repositories. It is an integral component to Oracle’s Finance, Risk, and Compliance Architecture for financial services.

5.12.2. Features

FSAH extends the features of Oracle Subledger Accounting and Oracle General Ledger to be applied against front-office banking and other financial services source systems.

For more information, please refer to Section 4.4 of this document. Additionally, the Financial Services Accounting Hub initial release in 2005 was documented in a separate Release Content Document available on MetaLink. This document details the specific features and dependencies of FSAH.


5.13. Oracle Internal Controls Manager

5.13.1. Overview

Recent corporate financial scandals involving many companies have damaged investor and employee confidence. As a result, Corporate Governance has moved to the forefront of business agendas. There is an increasing focus on corporate accountability and compliance with regulators holding top executives personally responsible for misrepresentation of company performance. Oracle Internal Controls Manager is a comprehensive tool for executives, controllers, internal audit departments and public accounting firms to use to document and test internal controls and monitor ongoing compliance. With Oracle Internal Controls Manager, your company can increase internal control testing efficiency, improve risk assessment confidence, and lower external audit verification costs. With Oracle Internal Controls Manager the company officers responsible for certifying a financial statement can review the financial statement in the consolidation hub and drill to the internal control verifications in Internal Controls Manager.

5.13.2. Features

5.13.2.1. External Auditor Ready Reporting

A number of Audit Assurance Reports are available which could easily be delivered via printer, e-mail, fax etc. Outputs generated are industry standard such as PDF, RTF, and HTML and qualify as supporting documents.

5.13.2.1.1. Certification Reports Organization and financial statement certification reports have all the summary and detail of the certifications.

5.13.2.1.2. Segregation of Duties Reports These reports show the users who have incompatible functions and responsibilities. Also, the user waiver information is included in the reports.

5.13.2.1.3. Risk Library Reports These reports detail the processes, associated risks, controls, audit procedures and accounts. Listing reports are provided for risks, controls, audit procedures and their attributes.

5.13.2.2. Export Search Results to Excel

This feature allows search results to be exported to Microsoft Excel from Oracle Internal Controls Manager.

5.13.2.3. DBI for Compliance

This DBI page is targeted towards the Signing officer. This lists key metrics like significant accounts evaluation, organization and process certifications and the number of new and open issues. This page includes detailed portlets for each metric, and also detailed drill down reports for each metric. The key reports are:


5.13.2.3.1. Financial Statement Certification Dashboard

This report provides a summary view on significant account evaluations, organization and process certification results in all or selected financial statement certifications.

5.13.2.3.2. Significant Account Evaluation Reports

This Financial Statement Summary Reports provide detailed information on the evaluation of significant accounts, with the sub certification audit engagements that form the basis for that evaluation.

5.13.2.3.3. Organization Certification Reports

The Organization Certification Reports provide detailed information on organization certification progress and results, as well as open issues.

5.13.2.3.4. Process Certification Reports

The Process Certification Reports provide detailed information on sub certification progress and results, risk exposure of business processes, control evaluations by organizations, as well as open issues.

5.13.2.3.5. Open Remedial Actions Reports

The ‘Key Performance Indicator’ (KPI) portlet in the dashboard provides a summary view on all open remedial actions, which includes findings and remediation. Their corresponding aging information is also provided in the detail reports.

5.13.2.3.6. Open Issues Summary Report

Issues are logged in sub certifications. They represent concerns in the certification. The Open Issues Summary report provides an overview of open issues in all the related sub certifications. The ‘Trouble area - past due’ issues are highlighted in this report.

5.13.2.3.7. Compliance Environment Change Report

The Compliance Environment Changes report highlights changes in internal controls, or things that affect internal controls. The changes are summarized for the reporting period and represent stability of the compliance environment. This report provides an overview of environment changes in the chosen quarter.

5.13.2.4. Segregation Of Duties: Concurrent programs in Constraint Definition

Segregation Of Duties constraints can now include concurrent programs.

5.13.2.5. Segregation Of Duties: Constraints with incompatible sets

The user can define constraints with incompatible sets of functions or responsibilities. A user is in violation of this constraint if he/she has access to at least one function/responsibility from the first set, and at least one function/responsibility from the second set.


5.13.2.6. Segregation Of Duties: Re-validating constraints after corrective actions

The user should be able to revalidate a violation report to check if corrective action for all violations is complete. If there are no violations, the status of the existing violation report should be updated as ‘Corrected’.

5.13.2.7. Segregation Of Duties: Complaint Provisioning of User Accounts

Whenever a user is given additional access by adding a responsibility, or adding a function to a menu, a check will be done to see if this violates any existing Segregation of Duties constraint. If some constraints are violated then the system sends a notification to process owners and organization managers about the violation.

5.13.2.8. Upload Recommended Settings

Users are able to upload the recommended settings for various profile options and setup parameters through Web ADI spreadsheets.

5.13.2.9. Application Controls Change History Reports

Oracle XML Publisher-based reports are available to show the history of application control changes.

5.13.2.10. Application Control Overrides in Suppliers and Supplier Sites

Users are able to view the setup parameters for an organization that has overriding values for a supplier or supplier site.

5.13.2.11. Profile Option Change Tracking

Changes to profile option values are tracked. Users are able to view profile option values at site, application, responsibility and user levels, and the history of changes at each level. Users are also able to view values that are overridden at lower levels like application, responsibility and user.


5.14. Oracle Internet Expenses

5.14.1. Overview Oracle Internet Expenses, a T&E expense management solution, is designed to ensure self service users comply with your expense reimbursement policies, while at the same time quickly and accurately entering their expenses.

5.14.2. Features

5.14.2.1. Expense Allocations

This feature empowers end users to perform General Ledger (GL) accounting and/or Oracle Projects expense allocations, including splitting expenses. This feature ensures expenses are properly charged since users know best how their expenses should be allocated.

5.14.2.1.1. Flexible Setup

You are able to define whether end users can update one, many, or all GL accounting segments. You are able to define different segment update rules for each chart of accounts, and at the set of books level. This ensures proper data security since users only have access to information that is relevant to their responsibilities.

Note: This feature was first released with Oracle Internet Expenses Mini-pack J (11i.OIE.J) and enhanced in Mini-pack K (11i.OIE.K).

5.14.2.1.2. Expenses Splitting

Based on system setup, end users are able to split expenses across multiple accounting segment values, for example across multiple cost centers. Oracle Projects users are able to split expenses across multiple projects or tasks. This is important since users often perform work for many different entities.

Note: This feature was first released with Oracle Internet Expenses Mini-pack K (11i.OIE.K).

Users have the flexibility to split one, many, or all expenses at the same time using equal percentages, or user-defined percentages. Users can also split individual expenses by amount.


5.14.2.1.3. GL Accounting Validations during Entry

Based on setup, Internet Expenses ensures accounting code combinations are valid before expense reports are submitted for approval. This helps to streamline the reimbursement process since end users have first-hand knowledge about where expenses should be charged. If you choose to


validate in workflow (existing behavior), your back-end personnel will be able to correct invalid code combinations via a notification.

Note: This feature was first released with Oracle Internet Expenses Mini-pack J (11i.OIE.J).

5.14.2.1.4. Customized Accounting Generation

Using new accounting client extensions, you can create custom rules to build and validate accounting code combinations. This is important if you have special accounting hierarchy rules that are not met with the out-of-the-box defaulting and validation rules.

Note: This feature was first released with Oracle Internet Expenses Mini-pack J/JRUP2 (11i.OIE.J).

5.14.2.1.5. My Allocations

Users can predefine expense allocation sets to facilitate rapid expenses entry. During entry, end users are able to apply their allocation sets, adjust the results, and create new allocation sets.


5.14.2.2. Global Per Diem and Mileage

This feature provides enhancements to the existing solution, including the ability to automatically upload U.S. GSA Per Diem rates. This helps you to comply with various statutory rules that dictate how users should be reimbursed.

5.14.2.2.1. U.S. GSA Per Diem Uploads

Expense process owners can automatically upload CONUS and OCONUS Per Diem rates provided by the U.S. government. The solution provides full support for seasonal rates. The uploaded rates are available both for reimbursing employees, as well as for establishing policy compliance limits for meals and accommodation expenses.

5.14.2.2.2. Enhanced Per Diem and Mileage Calculations

The enhanced global per diem solution provides additional support for complex calculations to meet statutory regulations, especially in the Nordic countries. Various enhancements have been made to the mileage reimbursements solution. In particular, you now have the ability to upload accumulated mileage for employees, if you happen to implement Internet Expenses in the middle of a fiscal year.



5.14.2.3. Cash Advances Management

End users can apply advances during expenses entry. In addition, users are able to search on payments information. These enhancements help you to provide improved cash advances management.

5.14.2.3.1. Self-Service Advance Applications

End users are able to apply their cash advances during expenses entry. If a user does not apply an available advance, they are asked to enter a reason why they did not apply the advance. In real-time, users are presented with information on the outstanding balance of their advance. This is particularly useful when end users must reimburse their employer for an outstanding balance on an advance.

This feature helps to streamline the expense reimbursement process since users know best to which expenses their advances apply.

5.14.2.3.2. Payables Advances Management

The HTML-based audit management module has the ability for Payables personnel to review or apply advances, and to adjust advances applied by end users. (In prior releases this was only available in the Payables Expense Reports form.) In addition, you are able to define audit selection rules to ensure expense reports are selected for audit if users do not apply available advances to an expense report.

5.14.2.3.3. Payments Search

Users are able to search on both advances and reimbursements. This capability is available to end users, Payables personnel, help desk personnel, and users of the expense analysis and reporting module. This is particularly important to management so they can keep track of outstanding advances.


5.14.2.4. Bar Coding

Based on setup, a bar code is generated and printed on the expense report confirmation page. When Payables personnel receive the receipts package, they can quickly scan the bar code to ‘check in’ the receipts package. This dramatically improves the productivity of your Payables personnel.


5.14.2.5. Manager Approvals

The integration with Oracle Approvals Management (AME) has been further enhanced to support the expense allocations feature.

5.14.2.5.1. Enhanced Cost Center and Projects Approvals

You are able to route expense approvals based on the aggregated amounts charged to cost centers or projects. The approval notification shows both the


total amount to be approved, and how much of each expense was charged to the area of approval authority. This feature ensures that proper approval authority is enforced when an expense report is allocated to many different cost centers, projects, or awards.

5.14.2.5.2. Parallel Approvals

You can route approvals in parallel when expense reports are charged to multiple cost centers, multiple projects, or multiple awards. This streamlines the approvals process and thus ensure users are reimbursed as quickly as possible.

5.14.2.5.3. FYI Notifications

You can define rules in AME to send FYI notifications to managers and others who should be informed of expenses charged to their area of authority, but who do not need to approve the expense report.


5.14.2.6. Audit Management

The following enhancements have been made to the HTML-based audit management module.

5.14.2.6.1. Enhanced User Interface

The Audit Expense Reports page has been redesigned with separate expense views relevant to the activities auditors perform. These activities include verifying expenses, processing policy non-compliance issues, and reviewing other expenses data. This improves the overall auditor experience and will facilitate better decision-making.

When receipts are itemized, the relationship between the receipt and the itemized lines is shown. This increases auditor productivity since they are able to quickly verify that required receipts are received.

5.14.2.6.2. Auditor Itemizations

Payables personnel are able to itemize receipts using the same user interface that is used by end users. This helps streamline the reimbursement process and ensure that expenses are properly accounted for.

5.14.2.6.3. Expense Allocations in Audit

Auditors have visibility to all allocations information, including when expenses are split. They are also able to update the accounting for split expenses. This allows auditors to ensure that accounting is correct for all expenses.



5.14.2.7. Audit Automation

The already robust audit automation functionality is further enhanced as discussed below.

5.14.2.7.1. Payment Holds

You are able to automatically place expense report payments on hold when users have not submitted required receipts. This feature helps to ensure compliance with your expense reimbursement policies.

5.14.2.7.2. Enhanced Audit Rules

New audit selection rules are available, including the ability to select for audit all expense reports over a certain amount. This feature improves expense report compliance with your internal controls.


5.14.2.8. Receipts Management

These new features help to streamline the receipts management process.

5.14.2.8.1. Enhanced Receipts Required

Users don’t need to submit physical receipts when they charge business expenses to their employer credit cards. Auditor efficiency is improved when physical receipts are not required. Similarly, end users will spend less time processing their expense reports.

5.14.2.8.2. Receipts Tracking

Expense reports have a receipts status to indicate whether receipts are, for example, required or overdue. You are able to send notifications to users when receipts are overdue, and when receipts are received. The receipts status and notifications improves the tracking and management of receipts that are required for proper verification of business expenses.

5.14.2.8.3. Receipts Missing

It is possible to send notifications when users do not have original receipts and a missing receipts declaration is required. You are able to use Oracle Approvals Management to route expense reports for approval when end users cannot provide original receipts or other evidence of the business expense.


5.14.2.9. Entertainment and Fringe Benefits Policy Compliance

End users are able to enter employee and non-employee information for expenses related to entertainment and fringe benefits. You can capture additional information for attendees and recipients such as the business sector of non-employees. This improves reporting for policy and statutory compliance.



5.14.2.10. Credit Cards

These new features help streamline administration of credit card programs, and streamline expenses entry.

5.14.2.10.1. Automatic Level 3 Itemizations

You are able to upload and validate detail transaction data for MasterCard CDF3 and Visa VCF4 formats, when merchants provide this data. Oracle Internet Expenses uses the detail transaction data to automatically itemize credit card transactions. This reduces the time users spend completing expense reports, and ensures transactions are accounted for properly.


5.14.2.10.2. Automated Transaction File Transfers

You are able to automatically download credit card transaction data files from your card provider's server. This feature provides a synchronized and efficient way to retrieve your credit card transactions. In this release this feature is available for American Express card programs only.


5.14.2.10.3. Visa Integration

A new credit card transactions load and validate program provides complete support for uploading and validating Visa transaction files in Visa VCF3 and VCF4 formats.


5.14.2.10.4. Historical Transactions Management

You are able to categorize unused transactions as ‘historical’ and thus prevent further processing of these transactions. You can also send notifications to inform end users to start submitting subsequent transactions on expense reports. This feature helps to ensure that the cutover to using the Internet Expenses credit cards solution is smooth, and that end users understand the new procedures.

Note: This feature was first released with Oracle Internet Expenses Mini-pack J RUP1 (11i.OIE.JRUP1).

5.14.2.11. Expense Report-Level Descriptive Flexfields

You have the ability to enable descriptive flexfields that apply to the entire expense report. This allows you to capture important policy information such as the start and end dates of a business trip, travel authorization numbers, and so on.


Note: This feature was first released in Oracle Internet Expenses Mini-pack J (11i.OIE.J).

5.14.2.12. Attachments

End users and auditors are able to attach documents such as imaged receipts to the entire expense report, or to individual expenses. Managers and auditors can access and review the attachments, which facilitates more efficient approvals.

Note: This feature was first released in Oracle Internet Expenses Mini-pack J (11i.OIE.J).

5.14.2.13. Expense Analysis and Reporting

The following enhancements have been made to the expense analysis and reporting tool.

5.14.2.13.1. Proxy Assignment

Managers with the expense analysis and reporting responsibility are able to assign the rights to view their HR reporting hierarchy to other users, such as financial analysts and administrative personnel.

5.14.2.13.2. Cross-Organizations Support

Managers and other users are able to perform expense analysis and reporting across organizations from a single view. This is particularly important for managers whose management hierarchy spans multiple business units or legal entities.


5.14.2.14. Ad Hoc Reporting

Using Oracle Discoverer, you can develop ad hoc reports based on seeded expense reporting business areas. The business areas are targeted for use by operations teams with visibility across the entire company. This helps you to provide decision makers with information in a format that is meaningful to them.

5.14.2.15. Terms and Agreements

You are able to require end users to acknowledge that they have reviewed and agreed to the terms of your travel, entertainment, and reimbursement policies prior to submitting expense reports.


5.14.2.16. Region-Based Confirmation Page Messages

You are able to configure the expense submission and processing instructions according to local and regional requirements. You use region-based messages,


for example, to provide different receipt submittal policies and related processes to meet shared-service or other organizational needs.


5.14.2.17. Help Desk Support

A new responsibility has been provided so help desk personnel can quickly search for expense reports. Help desk personnel can also view the confirmation page so that both they and end users see the same information. This ensures your help desk personnel can quickly resolve questions raised by end users.

Note: This feature was first released with Oracle Internet Expenses Mini-pack J RUP2 (11i.OIE.J/JRUP2).

5.14.2.18. Contact Us

This feature helps you to quickly enable end users to contact your help desk personnel. You have options to initiate an Oracle iSupport create service request process, open a formatted page with contact and problem description fields, open a URL, or open an email composer window.

5.14.2.19. Expense Report Export

Payables personnel can run the Expense Report Export concurrent program from the Internet Expenses Auditor and the Internet Expenses Audit Manager responsibilities. A new user interface allows payables personnel to review the export results online and analyze them quickly. Four categories of results list the expense reports for which invoices were created, the expense reports that had prepayments applied, the expense reports placed on hold, and the expense reports that were rejected. Existing expense import has been renamed to expense report export to reflect the change in the process.


5.15. Oracle iReceivables

5.15.1. Overview

Oracle iReceivables, a self-service based account management application, helps reduce the cost structure of billing and collections by providing a company's customers with the ability to access their accounts online. Customers can perform extensive inquiries, dispute bills, pay invoices, adjust open credits and review account balances. Bill disputes are automatically routed and processed, eliminating the need for intermediaries or paper-based claims management, allowing companies to save money, reduce processing time, and improve customer service. All transactions accessible via Oracle iReceivables are protected by Oracle’s standard Self-Service Web applications security. Oracle iReceivables is an integral part of the Oracle E-Business Suite, designed to transform your business into an E-Business.

The intuitive user interface provides users with simple and effective access to Receivables data. The practical, Web-based look and feel, is consistent with other Oracle Self-Service applications, and offers distinct navigation indicators and a new step-by-step process flow.

5.15.2. Features

5.15.2.1. Oracle Trading Community Architecture

Oracle iReceivables uses the Party Usage Model in Trading Community Architecture Release 12.0 to enable users to manage bills for multiple accounts based on the customer’s payee relationships configured for the users account. With this feature users now have the ability to dynamically manage bills for multiple accounts without being required to register for access to each specific account.

5.15.2.2. Oracle Payments

Oracle iReceivables uses Oracle Payments’ new payment formatting and end-to-end electronic payment processing features made available in this release. Previously, users had to manually type in customer credit card or bank account information when taking payments, resulting in decreased efficiency and increased risk of data entry errors. Now users can select from customer credit card and bank account data already in the system. Payment method and processing rules are easily configurable from new setup pages, and customers’ payments are automatically authorized and captured.


Multi-Org Access Control enables companies that have implemented a Shared Services operating model to efficiently process business transactions by allowing them to access, process, and report on data for an unlimited number of operating units within a single applications responsibility. This increases the productivity of Shared Service Centers for users no longer have to switch applications


responsibilities when processing transactions for multiple operating units at a time. Data security is still maintained using security profiles that are defined for a list of operating units and determine the data access privileges for a user.

Oracle iReceivables leverages the Multi-Org Access Control in Shared Services Release 12.0 to provide external and internal users org-specific and cross-org views of account and transaction information.

5.15.2.4. Enhanced User Self Registration

Oracle iReceivables has enhanced the User Self Registration functionality by leveraging the User Management application and incorporating the new challenge-response model, which provides greater flexibility and allows the deploying company to configure their own validation questions according to their business practices.

5.15.2.5. Cross Customer Site Payments

Oracle iReceivables has enhanced the payment functionality to allow the self-service users to pay their bills and review their payments across customer sites.


5.16. Oracle Loans

5.16.1. Overview

Oracle Loans is designed to support the full range of business activities associated with creating, approving, funding, servicing and monitoring loans. Its purpose is to automate and standardize the loan origination and loan servicing processes for lending organizations. Oracle Loans is geared toward federal and state/local agencies and other lending organizations who offer direct loans or extended repayment plans. Oracle Loans leverages numerous Oracle E-Business Suite modules including Oracle Receivables, Oracle General Ledger, Oracle Payables, Oracle Customer Data Hub, Oracle Credit Management and Oracle Advanced Collections.

5.16.2. Features

5.16.2.1. Loan Type and Product Configuration

Oracle Loans expands the use of Loan Type and Product to provide controls and consistency across loan programs. The Loans Adminstrator is able to create loan products with numerous terms and conditions that default into the loan application. These defaulting parameters streamline the loan agents’ application process while enforcing policy across agents and applicants. Some of the defaulting parameters that are available include:

• Whether or not a loan has multiple disbursements • Whether or not a construction loan can convert to a term loan • Whether or not a credit review is required • Range for the loan requested amount and term • Rate type • Floating frequency for variable rate loans • Payment frequency • Collateral required and loan-to-value ratio • Conditions for approval or conversion • Mandatory fees • Disbursement schedule for loans with multiple disbursements

5.16.2.2. Multiple Disbursements

Oracle Loans supports multiple disbursement loans as required in Construction and Student Loans, Disbursement phase and Term Phase. In the disbursement phase, a disbursement schedule for multiple disbursements is supported. Payment to TCA payee parties is part of this feature.

5.16.2.3. Loan Portfolios, Graphs & Online Reporting

Users are able to create different portfolios based on their criteria and have a graphical depiction of the portfolio on the Loans Dashboard. A similar payment graph is part of the Loans Amortization schedule.


5.16.2.4. Sophisticated Credit Decisioning

Tight and automated integration with Oracle Credit Management provides credit checking and decision making with configurable scoring engines.

5.16.2.5. Federal Budgetary Control

For U.S. federal customers, the support for fund checking and reservation is supported as dictated by the JFMIP requirements.

5.16.2.6. Floating Rate and Weekly Payment Frequency

Floating Rate and Weekly Payment Frequency support for floating rate based on an index and weekly payment frequency is supported.

5.16.2.7. Enhanced Payment Plans with Rules

Rules can be set to auto-derive receivables to be converted into a loan based on the product setup.


5.17. Oracle Payables

5.17.1. Overview

Oracle Payables provides the integration and flexibility you need to efficiently manage disbursements while keeping strong controls over matching, budgets, approval processes, and payments. As a cornerstone to the Procure to Pay flow, Payables provides process collaboration across departments within the enterprise and beyond to suppliers. As a key member of the Financial Management Chain, Payables assists users in meeting the demands of corporate governance, promotes fiscal discipline, and meets complex and diverse statutory requirements.

5.17.2. Features

5.17.2.1. Legal Entity

Legal Entity is a new addition to the Oracle E-Business Suite that enhances the ability to manage one’s legal corporate structure and track data from the legal perspective. The solution presents the foundation for features that help daily operations comply with local regulations. Invoices and Payments indicate the operating unit and the legal entity owner of the transaction. The legal entity can be used as selection criteria when preparing pay runs. For more details, please see the Legal Entity section of this document.



In Oracle Payables, your Multi-Org Access Control and Preferences allow users to enter invoices or batches of invoices for one operating unit, and then seamlessly enter invoices for another operating unit. Select invoices across operating units for payment processing within a single pay run. Setup is more manageable and gathering information and running concurrent programs are more efficient. For more details, please see the Multi-Org Access section of this document.

5.17.2.3. Representation of Suppliers in the Trading Community Architecture (TCA)

The Trading Community Model is a highly flexible architecture that allows you to fully model real world entities in your trading community and accurately represent the complex relationships among those entities. It is the core data model for trading partners used by Oracle E-Business Suite applications. By


representing Suppliers as part of the trading community, you have access to many of the features provided by TCA. These include:

• Data Librarian Function & Processes • Integrated Enrichment Capabilities including D&B • Address Validation • Data Consistency • Ease of Data Maintenance

5.17.2.4. New User Interface for Supplier Entry and Maintenance

This new user interface presents a clear distinction between the supplier’s company details and terms and controls for the trading relationship. Managing the attributes specific to particular functional areas such as Oracle Payables, Purchasing and Receiving can be controlled with the use of Function Security. Adding new locations or relationships with additional operating units is streamlined. Additional tax and legal registrations provide key information to meet your reporting and compliance needs. Tailor a quick update page with those values most often updated for even faster maintenance.

Along with the many attributes that could be captured using the previous Forms based user interface, the new supplier UI also includes a Survey section that provides administrators with access to the results of questionnaires that the supplier has been asked to complete, either during self-registration or as part of profile maintenance through iSupplier Portal. Purchasing Category assignments further designate the type of goods and services the supplier will supply.

5.17.2.4.1. Supplier Bank Accounts

Enhancements to the setup of supplier bank accounts remove some processing restrictions and achieve greater control and security. Bank accounts are modeled centrally providing the following features:

• The bank account is tied directly to the trading partner allowing one bank account definition to be leveraged by a ‘supplier’ trading partner and shared if the trading partner is also an employee or customer. This approach provides for easier and centralized maintenance and security of the bank account information

• This definition is targeted directly towards ‘trading partner’ bank accounts leaving internal bank accounts out of the user interface. In other words, the supplier’s banking information is entered and assigned right in the Supplier Entry and Maintenance user interface.

• Notification when trying to inactivate a bank account that is associated with unpaid invoices or pay runs that are in process

5.17.2.5. Introduction of Invoice Lines

Oracle Payables incorporates Invoice Lines into the invoice model. Adding Invoice Lines is a key architectural change, which enables Oracle Payables to better model the paper or electronic business document yet maintain key features that exist at the invoice distributions level.

Merged into the current invoice transaction business flows, Invoice Lines supports the representation of the goods or services as well as tax, freight, and


other charges as lines with distributions tied to each line. Additional fields record attributes such as serial numbers and item descriptions.

This feature offers the ability for line level approval and matching between an invoice line and a purchase order shipment pay item, or receipt. Furthermore, it facilitates the capture and transfer of additional, pertinent information to and from Oracle Projects and Oracle Assets.

5.17.2.6. Invoice Processing for Contract Financing, Retainage, and Progress Terms

Complex payment terms and conditions for fixed price contracts is captured during the procurement contract flow. This includes options to schedule points of progress for invoicing, request an advance or progressive financing support, and record negotiated amounts to retain until completion of the purchased item, service, or project. These terms and conditions are supported in Oracle Payables when recording invoices and managing payment execution during the lifetime of the contract.

5.17.2.6.1. Financing: Advances and Progressive Contract Financing Advances are generally one-time prepayments made before work on the contract begins while contract financing infuses money to the supplier as work progresses. Oracle Payables ensures that the amounts financed are recovered by automatically applying financing to subsequent invoices per the specific terms captured in the purchase order.

5.17.2.6.2. Retainage and Retainage Release

Retainage is the common practice of withholding a fixed amount / percentage of payment until all work under a contract is complete and accepted. The retainage terms are agreed upon by the buyer and supplier and are intended to make sure that the supplier finishes the work as per the contract. Retainage is also called ‘retention’ or ‘contractual withholds’. At the end of the project or when agreed events have occurred, the supplier requests the amount retained and payment is made to release it. Payables automatically retains per the purchase order on invoices coming in and supports the retainage release and payment process.

5.17.2.6.3. Invoices for Progress

Invoices representing progress are matched to the purchase order, updating the purchase order with the progress. A percentage of the invoice may be retained and contract advances and financing may be automatically applied seamlessly bringing together the relevant contract terms with each invoicing event. In some cases, the progress is reported via a work confirmation process. Suppliers entering a work confirmation directly in Oracle iSupplier Portal have a receipt recorded in Oracle Receiving. Pay on Receipt terms recorded on the purchase order are translated into a self-billed invoice, in Oracle Payables, to be paid.


5.17.2.7. Enhanced Invoice Approval Includes Line Level Approval

With the introduction of Invoice Lines, users are able to further extend their approval policy granularity in Oracle Approvals Management for individual lines of an invoice.

Notification details are targeted to the level of approval required and embedded with a view of the invoice including summary amounts, essential line information, approver sequence, and attachments. Approvers of invoices submitted without a purchase order can enter accounting details as they approve.

5.17.2.8. Non PO Invoices Entered via iSupplier Portal

Invoices entered by Suppliers where a purchase order has not been obtained are represented as Invoice Requests. Invoice Requests are visible in Oracle Payables but are not paid or accounted until the invoice can be verified and approved.

5.17.2.9. Collaboration with Suppliers to Resolve Disputes

Holds on invoices that are a result of differences between the invoiced and planned amounts or quantity result in disputes that must be resolved. Invoices that have been approved by the owner of the purchasing transaction but rejected during the approval process may also be subject to disputes with the supplier. Leveraging workflow notification, disputes are communicated and negotiations can be suggested to the Supplier. Suppliers are able to accept the suggested changes, withdraw their invoice, or submit their counter proposal. The negotiation continues until the issues are finally resolved. Additionally, Suppliers are able to negotiate online via iSupplier Portal. All changes and comments entered during the collaboration are tracked in Payables and can be viewed at any time.

5.17.2.10. Oracle E-Business Disbursement Requests

Disbursement Requests are requests to make a payment to a company or individual that is not a supplier. This feature empowers the Payables Manager with visibility and control over the items selected for payment processing. Disbursement requests carry accounting entries and support funds checking for budgetary control. Oracle E-Business Suite products may submit the request as already approved or take advantage of Oracle Payables’ Approval Workflow. Currently, Oracle Loans takes advantage of this feature for loan disbursements to borrowers and Oracle Receivables for customer refunds.

5.17.2.11. Enhancements to Payment Banks, Branches, and Accounts

Banks and Bank Branches are represented in Oracle’s Trading Community Architecture and shared by other Oracle E-Business Suite applications. The Bank Account is centrally defined, managed and secured and includes the legal ownership and operating unit access for each bank account. The Oracle Cash Management section of this document provides further details.


5.17.2.12. Payment Process Enhancements

Payment processing is significantly enhanced with this release. Along with a new user interface, the management and visibility of the payment process are much more robust and easier to use.

5.17.2.12.1. Toolset for the Payment Manager

Manage fewer pay runs by choosing selection criteria with multiple currencies, operating units, and pay groups. A new Selected Invoices page displays summary and detail information used to view and analyze invoices selected in a pay run. Powerful search tools improve online inquiry to invoices that you may want to review, modify, or remove. In addition, you can view invoices that matched the invoice selection criteria but could not be selected because they were not validated or approved. This allows you to quickly identify key invoices that you might want to resolve so they can be included in the pay run. Resolve missing exchange rates easily within the pay run itself.

Save pay run invoice selection criteria and processing requirements in a template to be reused and/or scheduled. Schedule the submission of your payment runs using a particular template periodically or with a more flexible schedule such as every other Friday and the last day of the month. You are also able to include the pay run in a request set if you want to group other programs or reports with your pay run processing.

A Payment Dashboard empowers your payment manager with the ability to monitor all current pay run processing and payment processes that require attention.

5.17.2.12.2. More Robust and Flexible Payment Processing Engine

Oracle Payables, in partnership with Oracle Payments, offers the latest generation of electronic payment transmission technologies, formats, and security meeting most industry standards ‘Out of the Box’. For more details, please see the Oracle Payments section of this document.

5.17.2.13. Accounts Receivable / Accounts Payable Netting

When a trading partner is both a customer and a supplier, you may choose to offset open receivables’ against open payables’ items. Netting Agreements add trading partner terms as well as deploying company controls. A selection program automatically pulls information from Oracle Receivables and Oracle Payables taking into consideration discounts, late fees, and withholding taxes prior to determining the final netting amount. A review process and trading partner approval afford further verification to support the netting event.


5.18. Oracle Payments

Overview Oracle Payments is a new product in this release.

Oracle Payments provides a highly configurable and robust engine to disburse and receive payments. Oracle Payments is a fundamental part of the Oracle Applications architecture, and is provided with multiple products that require support for payment processing. As the new central payment engine, Oracle Payments processes invoice payments from Oracle Payables, bank account transfers from Oracle Cash Management, and settlements against credit cards and bank accounts from Oracle Receivables. Oracle Payments provides the infrastructure needed to connect these applications and others with third party payment systems and financial institutions.

In addition to new features, Oracle Payments offers functionality previously released as Oracle iPayment, which will be obsolete as of Release 12.0.

The centralization of payment processing in the Oracle Payments engine offers many benefits. Companies are able to efficiently centralize the payment process across multiple organizations, currencies, and regions. Better working capital management can be achieved by providing cash manager’s real-time visibility into cash inflows and outflows. A full audit trail and control is supported through a single point of payment administration.

The product supports features designed specifically for its two payment process activities: funds disbursement (paying money owed to creditors, such as suppliers) and funds capture (electronically receiving money owed by debtors, such as customers).

In order to centralize the funds disbursement process so that supplier invoices, employee expense reports, loan disbursements, customer refunds and other payments can be made in a consistent way, the payment processing functionality and setup in Oracle Payables has moved to Oracle Payments in Release 12.0. The approval and selection of invoices for payment remains in Oracle Payables, but Oracle Payments now handles all creation and validation of payments, aggregation of payments into files, format and transmission of files, and so on. Country-specific Oracle Globalizations features are now standard and has also been moved within Oracle Payments.

Most of the release 11i Oracle iPayments functionality already supported the funds capture process. This functionality has been enhanced in some cases to take advantage of the new payment architecture. Country-specific Oracle Globalizations features are now standard and are included in Oracle Payments.

5.18.1. Features

5.18.1.1. Advanced and Highly Configurable Formatting Framework

Financial institutions and payment systems require compliance with certain payment formats in order to disburse or capture funds. These formats are created as templates in Oracle XML Publisher, and applied to an XML data file produced


by Oracle Payments. These templates can be created or modified with minimal technical effort, using a standard text editor such as Microsoft Word. In the future, when a payment system or financial institution requires a change to its format, the change can be made in a matter of minutes, without costly external consulting help.

Oracle Payments offers a rich library of payment formats that support various types of payment files and messages. EFT disbursements, printed checks, ACH debits, bills receivable remittances, and credit card authorizations and settlements are all supported. Deploying companies can use any format in this library. When a format is required, and it is not provided, it is simple to copy a similar format template, and use it as the basis for creating the new format. This greatly speeds time to implementation and testing, as well as reducing implementation costs.

Special consideration has been given to the complexity of creating fixed position and delimited formats. Oracle XML Publisher’s eText feature is used for these format types. eText allows the format layout to be presented in an understandable tabular structure.

5.18.1.2. Flexible Validation Model

In payment processing, it is critical to ensure that payment messages and files sent to third-party payment systems and financial institutions are valid in addition to being correctly formatted. In order to help achieve straight through processing, Oracle Payments introduces a flexible way to ensure that payment-related validations are in place.

Oracle Payments provides an extensive library of payment validations that are associated with the supported payment formats. The payment validations are implemented using a flexible framework that allows a user to add new rules. Deploying companies are able to choose between using the prepackaged library of validations, using their newly added validations, or using a combination of these rules.

The timing of validation execution also has flexibility. Payment validation rules can be assigned upstream or downstream in the payment process. Or a combination of upstream and downstream rule assignment can be used. Users have the flexibility to adapt this assignment to best support their business model. For example, the upstream assignment and execution of validations may be best for a decentralized payment environment. Or a downstream validation execution may be better in a shared service environment, where payment specialists can resolve any validation failures.

5.18.1.3. Secure Payment Data Repository

Oracle Payments serves as a payment data repository on top of the Trading Community Architecture (TCA) data model. The TCA model holds the party information. Oracle Payments then stores all of the party’s payment information and its payment instruments (such as credit cards and bank accounts). In release 11i, this information was held separately in different applications such as in the Oracle Purchasing supplier and the Oracle Payables bank account entities. This common repository for payment data provides improved data security by


allowing central encryption management and masking control of payment instrument information.

5.18.1.4. Improved Electronic Transmission Capability

Oracle Payments provides secured electronic payment file and payment message transmission and transmission result processing. All previously existing electronic transmission features in Oracle iPayment, Oracle Payables, and Oracle Globalizations is obsolete and replaced by the new central payments engine.

The following new industry-standard transmission protocols is supported out-of-the-box: FTP, HTTP, HTTPs, and AS/2.

5.18.1.5. Flexible Support for Various Business Payment Models

Companies model their business units in various ways in order to obtain performance improvements and cost savings. Oracle Payments can be flexibly configured to support a variety of payment models. Oracle Payments works in a completely decentralized mode where it is part of accounts payable or collection administration within each business unit. If a company has decided to centralize these kinds of financial activities in a shared service center, Oracle Payments works to efficiently support the shared service center model.

This flexibility in Oracle Payments also provides support to companies who wish to use a payment factory model. A payment factory allows operating units to maintain their own accounts payable and other payment administrative functions. The role of the payment factory is to handle communication and transactions with the company’s banking partners. Invoice selection can be done in Oracle Payables within a single operating unit. Then a payment factory administrator using Oracle Payments can consolidate payments from different operating units into a single payment file for transmission and settlement, thereby reducing transaction costs.

Oracle Payments supports the new Multi-Org Access Control component throughout its processes to build payments and create payment files, as well as in the dashboard pages provided for users to monitor and manage the payment process. Multi-Org Access Control allows users to efficiently process business transactions by processing and reporting on data that resides in an unlimited number of operating units, within a single applications responsibility. Data security is still maintained using security profiles that are defined for a list of operating units and determine the data access privileges for a user.

5.18.2. Funds Disbursement Features

5.18.2.1. Enhanced Disbursement Process

The new Oracle Payments disbursement engine allows businesses to greatly simplify their user procedures around managing complex payment processes that span multiple payment methods, formats, check stocks, transmission protocols, currencies, organizations, and bank accounts. Oracle Payments has redesigned the payment build process that Oracle Payables used in previous releases. The Oracle Payables payment batch process required the submission of the invoice


selection process to be segregated according to the way the invoices needed to be paid (printed checks, electronic funds transfer, different formats, and so on).

The new Oracle Payments funds disbursement process allows the invoice selection process in Oracle Payables and other products to be neutral to the way documents will be paid. This is achieved by effectively splitting the payment build process into two separate processes. The first process creates payments by grouping documents according to various rules such as the payment method and currency. Accounts Payable managers are able to simplify their processes by submitting fewer invoice selection batches, each one spanning multiple payment methods, formats, bank accounts, and payment currencies. Invoices can be selected for payment based on business reasons such as maximizing discounts. The second process then aggregates payments into formatted payment instruction files, and handles any additional processing. The cost of the disbursement process is lowered by creating fewer check runs and EFT payment files by grouping payments across the criteria of the first process.

5.18.2.2. Enhanced Electronic Payment Processing

In previous releases, various solutions for electronic payment processing were available throughout the Oracle E-Business Suite. Not all solutions supported a complete information flow. For instance, in some cases an electronic file could be produced, but not automatically transmitted to a bank. Now, Oracle Payments offers end-to-end electronic payment processing that includes validation, aggregation, formatting and secure transmission of payments to financial institutions and payment systems.

Automatically pushing groups of payments through all the steps of electronic processing, known as straight through processing or STP, results in lower costs. The new formatting framework, flexible validation model, and improved electronic transmission capability greatly minimize any need for writing payment customizations.

5.18.2.3. Configurability

Oracle Payments offers flexible setup to configure funds disbursement processing. The new configuration offers enhancements over the way payment processing was set up in different products in prior releases. The benefit of these changes is to help ensure an implementation that best support a controlled and efficient disbursement flow. The configuration options are in these general areas:

• Payment methods: each document to be paid requires a payment method to indicate how it should be handled in the funds disbursement process. Payment methods can be defined as broadly or narrowly as appropriate. Rules can be set for when payment methods can be used on documents. Rules can also be specified to default payment methods on documents when they are created


• Processing Rules: the payment method on a document links it to processing rules configured in Oracle Payments. A business user can specify these rules in an intuitive user interface page. Oracle Payments holds these setup rules in a key entity it calls the Payment Process Profile. Users can configure as many of these process profiles as they need for their payment processes. Each profile holds rules for how documents should be built into payments, how payments should be aggregated into a payment instruction file, and how the payment file should be formatted. Rules for printing checks, transmitting electronic files, generating separate remittance advice notifications and other options can be easily configured

5.18.2.4. Payment Processing User Interface

Oracle Payments offers a new user dashboard for managing the funds disbursement process. The dashboard allows payment administrators to manage every aspect of the process across multiple organizations from the same place. This benefits companies by providing full visibility of a payment as it moves through the financial supply chain. The single location for monitoring the process also helps streamline process management.

A payment administrator can use the dashboard to monitor the payment process and ensure that it is running smoothly. If there are any problems in the process, they are highlighted in a pending actions region. This is also the place where notification of any required actions is shown. Actions may be required based on the configuration choices made at implementation. The dashboard automatically navigates the administrator to the area to take corrective or required action, based on the pending issue the user selects in the region.

These are just a few of the actions an administrator can take from the dashboard:

• Review validation errors • Review and optionally modify proposed payments • Transmit payment files or retry failed file transmission processes • Initiate check printing and record printing results

5.18.2.5. Enhanced Check Printing Process

The check printing process has moved from Oracle Payables to Oracle Payments in this release. Check printing has been enhanced to make the initiation of printing, recovery from printing errors, and recording of print results simple and intuitive.

Payment document setup has been enhanced in Oracle Cash Management's new internal bank account definition. Check stock can be set up to indicate if it is prenumbered or if numbering is printed as part of the check format (common for laser checks). Oracle Payments uses this setup to present the payment administrator with the appropriate print actions for these different check stock types. The new dashboard guides the payment administrator to each printing action that may be performed.

5.18.2.6. Migration of Global Features to Central Engine

In previous releases, Oracle provided many payment features as country-specific Oracle Globalizations. These global features have been merged into standard


payment processing features provided by Oracle Payments. They are available in all deployments of Oracle Payments without any limitation by geography, while still allowing the ability to configure processing by region where appropriate.

Most of the migrated global payment features support the funds disbursement process. For instance, the new standard processing features lets users:

• Provide payment-level text messages for the payee

• Conditionally report payments to a country central bank

• Specify payment codes required by a financial institution for instructions on transaction handling, who bears the cost of bank charges, and statutory payment reasons

• Sequentially number EFT files for control purposes

• Configure the payment process to place formatted payment files in secure file directories

5.18.2.7. Consolidation of Payment Formats

All Release 11i payment formats used in the funds disbursement process have been consolidated as Oracle XML Publisher templates used by Oracle Payments. These formats include all those previously supported in Oracle Payables, Oracle U.S. Federal Financials, and Oracle Globalizations.

The following payment industry standard formats are now supported for use by all products that integrate with Oracle Payments: EDIFACT PAYMUL, ANSI X12.0 820, and U.S. NACHA.

5.18.2.8. Improved Remittance Advice Reporting

In release 11i, Oracle Payables and certain Oracle Globalizations provided some formats to support remittance advice reporting and notify a payee of the remittance detail when a payment is made. Now, Oracle Payments consolidates these formats into an enhanced Oracle XML publisher format. The notification process is improved by allowing the ability to set conditions for when a remittance advice should be produced. Configuration is also supported to set how the remittance advice should be delivered to a payee: via e-mail, fax, or printing and sending manually. All of these improvements help deploying companies better support their payment relationships with suppliers or other payees.

5.18.3. Funds Capture Features

Note that Oracle Receivables retains its existing features for lockbox processing and the electronic upload of remittance messages.

5.18.3.1. Enhanced Configurability

Oracle Payments offers enhancements in its setup to configure funds capture processing. The benefit of these changes helps ensure an implementation that best supports consistent and seamless funds capture processing. The enhancements can be grouped into three general areas:


• Payee Configuration: a Payee is defined for each entity in the deploying company that will process payments; typically only one setup is needed for the enterprise. This setup is done in payment card processing to define the merchant. The Payee setup provides various options for payment processing. The Payee setup user interface has been enhanced to add new options and clarify existing options. In prior releases, products needed to have their own way to link to the Payee entity. This is improved in release 12.0 by linking operating units to the Payee within Oracle Payments setup

• Routing Rules: routing rules can be configured to specify how a transaction should be processed. For example, the payment system that a transaction should be sent to is determined by this setup. The input criteria to the routing rules is enhanced in release 12.0, along with improving the user interface

• Improved Ability to Configure Processing Rules: previously in Oracle iPayment some processing rules required configuration by a technical administrator with software coding skills. In release 12.0, a business user can set all processing rules in an intuitive user interface page. Oracle Payments holds these setup rules in a key entity it calls the Funds Capture Process Profile. Users can configure as many of these process profiles as they need for their payment processes. Each profile holds the configuration for how to format and transmit authorization messages and settlement files. Rules for aggregating settlements into batches, limiting the number or amount of settlements in a batch, notifying payers of settlements, and processing acknowledgements can be easily configured

5.18.3.2. Improved Support for Credit Card Security Features

Oracle Payments consolidates the setup and management of credit card security features such as address verification, capture of a card security code, and masking of credit card numbers. Oracle Payments consolidates the setup and management of these features in release 12.0. This ensures a consistent implementation of credit card security functions throughout the funds capture process.

5.18.3.3. Enhanced Payment Processing User Interface

Oracle Payments offers an enhanced user interface for managing the funds capture process. The new dashboard page provides a clear overview of the payment process status, and provides the user with greater insight into rejections received from payment systems and into process failures such as communication errors. Reconciliation of funds capture transactions (such as credit card payments) is much easier with the new dashboard.

5.18.3.4. PINless Debit Card Transaction Support

Oracle Payments offers support for PINless debit card funds capture transactions. Sometimes referred to as “Debit Bill Pay”, this payment method is allowed by the debit networks in certain industries, including utilities, telecom, cable/satellite, government, education, and financial services.


5.18.3.5. Improved Payer Notification of Settlement

In release 11i, certain Oracle Globalizations provided a notification letter that could be generated and sent when a payer's bank account was debited to capture funds for payment. Now, Oracle Payments consolidates these letters into an enhanced Oracle XML publisher format. The format supports notification for all types of automatic funds capture settlements supported by Oracle payments - card payments or bank account transfers. The notification process is improved by allowing the ability to configure how a notification should be delivered to a payer: via e-mail, fax, or printing and sending manually. All of these improvements help deploying companies’ better support their payment relationships with customers or other payers.

5.18.3.6. Direct Debit Enhancements

Oracle Payments supports online validation for electronic funds transfers through enhanced API’s. The validation service is provided by some payment systems to perform validity checks on the payer bank account to be debited. Typically this service verifies that the bank account number is valid and not cited for fraudulent payment activity.

Oracle Payments extends its support for electronic funds transfer by adding third-party certifications for Paymentech and Concord EFSnet.

5.18.3.7. Improved Batch Settlement Performance

Bulk processing is now supported in the settlement interface from Oracle Receivables to Oracle Payments. The result is improved performance when running the automatic remittance program in Oracle Receivables.

5.18.4. Terminology

Term Definition

Payment Process Profile The Payment Process Profile holds all of the rules for how funds disbursement processing will happen on a document to be paid. The assignment of a process profile to a document is determined by the payment method on the document. When a user creates a process profile, he specifies rules such as:

• Which payment methods should use the profile and under what conditions

• How documents should be built into payments • How payments should be aggregated into a payment

instruction file • How the payment file should be formatted • If and how a payment file should be transmitted • If and when a payment file should be printed


Term Definition

Funds Capture Process Profile

The Funds Capture Process Profile holds all of the rules for how funds capture processing will happen on a document to be authorized or a settlement to be paid. The assignment of a process profile to a document is determined by the routing rules on the Payee. When a user creates a process profile, he specifies rules such as:

• How authorization messages should be formatted and transmitted

• How settlements should be aggregated into a settlement batch

• How the settlement batch should be formatted • How acknowledgements received from the payment

system should be processed


5.19. Oracle Profitability Manager – New Product

5.19.1. Product Overview and Foundation

Oracle Profitability Manager provides enterprises with a greater insight into the profitability of current operations, and empowers them with actionable information for making decisions and driving improved profitability. As part of Oracle’s Corporate Performance Management (CPM) suite, Oracle Profitability Manager is a comprehensive solution for the calculation, analysis and reporting of profitability.

Oracle Profitability Manager is a new application. It is the integration of two existing applications:

• Oracle Performance Analyzer (part of the Oracle Financial Services suite)

• Oracle Activity-Based Management (part of the E-Business Suite)

In Release 12.0, major emphasis will be placed on maintaining all the industry leading features and functions available in earlier versions of the Financial Services Applications (OFSA), while simultaneously leveraging the power of the Oracle E-Business Suite.

The new Profitability Manager application broadens the industry appeal of profitability analytics, and repeats the success the legacy products had beyond financial services enterprises. This release provides profitability analytics across any enterprise, in any industry sector.

5.19.2. Release Overview

The 12.0 Release of Oracle’s Profitability Manager Application incorporates the functionality from Oracle Activity-Based Management Release 11i, and Oracle Performance Analyzer Release 4.5.

Oracle’s Enterprise Performance Foundation (EPF) provides a common foundation for multiple Corporate Performance Management (CPM) applications, including Oracle Profitability Manager. For more details about the feature enhancements that will be included in the Enterprise Performance Foundation component of the release please see the Enterprise Performance Foundation section of this document.

In addition to the robust new features and functionality common across the Oracle Enterprise Performance Foundation, features specific to profitability management include Business Rules and calculations for allocation of income statement and balance sheet items, mapping activity rates, activity cost rollups, activity statistic rollups, cost object unit costs rollup and calculation, and party profitability.

Previous releases of these applications required additional integration to leverage the power of Activity-Based Management and Performance Analyzer. The 12.0 Release combines those features into a single product, leveraging the strength of


the shared, common data model. Customers, from any industry, can now incorporate activity and cost object measures directly in their operational models without external integration.

5.19.3. Features

5.19.3.1. Powerful Allocation System

Oracle Profitability Manager’s Mapping Rule data processing approach continues to meet the performance requirements of our customers who must process very large sets of data in a timely way. Mapping Rules support the following allocation types, covering the methods available in the prior releases of Oracle Performance Analyzer and Oracle Activity-Based Management (ABM):

Adjustment – Adjustment rules are used to create reconciling balances, or to adjust data for other business reasons. This was called a ‘plug’ allocation in version 4.5 of Performance Analyzer.

Field – Field rules are used for detail account and transaction calculations. Calculations between balance or rate columns on accounts are enabled with this method.

By Dimension – By Dimension rules are used for calculations between balances and rates. Generation of cost of funds is easily enabled with this method. This was referred to as ‘by-leaf’ in version 4.5 of Performance Analyzer.

Percent Distribution – Percent Distribution rules are used for realignment of costs or income items. The source data is ‘distributed’ across the targets, and generally preserves the starting amounts in the target dimensions. This incorporates the ‘by-leaf’ percent distribution from version 4.5 into a single percent distribution rule type. All functionality from version 4.5 of Performance Analyzer is preserved.

Simple Source on Allocation – Simple Source on Allocation rules are used for direct factor calculations. This feature also enables creation of a raw calculation template that can be built up using the other methodologies. This is new in the Profitability Manager 12.0 Release, and was not previously possible in version 4.5 of Performance Analyzer.

Retrieve Statistic – Retrieve Statistic rules are used for calculations between balances and rates. Rates may be loaded from external sources into rate lookup tables, or may be the results of prior processing steps. This was referred to as ‘Lookup Table’ in version 4.5 of Performance Analyzer, however in the new Profitability Manager this is designed as a factor calculation, not a percent distribution.

The above methods also support the mapping of activity rates to cost objects, cost object extended cost, and cost object-mapped costs.

Previous users of ABM will gain significant advantage with these new rule types since there will no longer be a one-to-one relationship between a source account and a mapping rule. A single rule may now select multiple inputs and map the


results to all of the desired outputs. These ‘meta rules’ will significantly improve the power of the mapping calculation.

5.19.3.2. Rule Sets

Users may group common rules together as a single Rule Set, which facilitates the maintenance and auditing of rules. Individual rules can be sequenced when defining a Rule Set, ensuring that a group of dependent rules are processed in the appropriate order. Rules Sets may be submitted as a single unit to process a complex business process involving multiple rules.

5.19.3.3. Transaction Costing

A major component of profitability analysis is the determination of how transaction costs affect an organization’s results. Business or account transactions may be integrated with the common data model, and then these transactions may be costed and applied to the specific accounts where they were generated.

When costing each transaction, a specific rate for the transaction is required to determine the total cost. These specific transaction rates may be integrated with the common data model, or they may be directly computed with the activity-based costing functionality which will be provided in the 12.0 Release of Oracle Profitability Manager. Activity rates generated with Profitability Manager are immediately available for any transaction costing calculations, greatly reducing the time and effort required to integrate rates from external applications.

5.19.3.4. Multi-Dimensional Activities and Cost Objects

The Activity and Cost Object components of the 12.0 Release of Oracle Profitability Manager allow true multi-dimensional analysis and reporting. Users have the flexibility to define the dimensions that comprise the activity and cost object, based on each organization's individual needs. In addition to the ability to define multiple dimensions that represent these objects, they may also be used to create hierarchies of multi-dimensional activities and cost objects. The ability to define true multi-dimensional activities and cost objects provides a powerful solution for activity-based costing methodologies.

The true benefit from multi-dimensional activities and cost objects is the ability to perform multi-dimensional analysis on these objects.

5.19.3.5. Activity Rates

In the 12.0 Release of Oracle Profitability Manager, the task dimension plus optional additional dimensions define activities. This architecture provides the ability to define multi-dimensional activities, and support multi-dimensional activity rates. Users are able to answer the question, ‘How much does it cost my organization every time an activity is performed?’

5.19.3.6. Activity Cost Rollup

Oracle Profitability Manager users have multi-dimensional Activity Hierarchies to rollup low-level activity costs into activity cost pools. Activity cost rollups


determine the level of detail a user needs to see in calculations and reports. The rolled up activity cost may also be used as the basis for the computation of activity rates, much like in earlier releases of ABM.

5.19.3.7. Mapping to Cost Objects

In the 12.0 Release of Oracle Profitability Manager, Cost Objects are architected to include true multi-dimensionality. In addition, Cost Objects support mapping of direct expenses, activity costs and activity rates. This new feature allows fully consumed costs at the cost object level as part of the standard set of mapping rules. In the previous release of ABM, this involved multiple steps, and multiple calculations.

5.19.3.8. Bill and Cost Object Unit Cost

The Bill of Resources and the calculation of cost object unit costs are improved in the 12.0 Release with the ability to map expenses directly to a cost object and a more robust multi-dimensional structure. The bill structure is composed entirely of cost objects, and activities is included in the cost object cost through the process of mapping activity rates to the cost object based on a statistical driver, representing the consumption of each activity.

With true multi-dimensional cost objects in the 12.0 Release, an organization’s business may be more accurately modeled.

5.19.3.9. Cost Object Extended Costs and Cost Object Total Costs

A single calculation engine is used to calculate cost object extended costs and cost object total costs. Cost object costs flow through the system as different levels, and culminate in what is described as cost object total costs. Initially, cost object units costs are calculated to represent the cost to produce a single unit of a cost object, and may be represented as follows:

Cost Object Unit Cost = Cost Object Mapped Costs/Production Volume

In addition to the generation of cost object unit costs, costs may be mapped directly to a cost object. If the user wishes to combine cost object unit costs with cost object mapped costs, they must be of a similar cost basis for their combination to make sense. To make the cost object unit costs similar in basis to the mapped costs, the unit cost must be ‘extended’ to be of the same basis as the mapped cost. The cost object extended cost takes the following form:

Cost Object Extended Cost = Cost Object Unit Cost * Production Volume

This may seem like the reverse of the cost object unit cost, but in many cases the production volumes used in the calculations represent different things – including actual volume, or planned volumes.

Once the cost object unit costs have been extended to the same basis as the mapped costs, they can be combined into cost object total costs as follows:

Cost Object Total Costs = Cost Object Extended Cost + Cost Object Mapped Cost


By using the same calculation engine as mapping, additional mapping features may also be used as part of these calculations.

The extended cost object calculation functionality allows the allocation of all cost types to a cost object, allowing for the complete cost definition for any cost object in the system, thus providing a true cost definition that shows all cost components.

5.19.3.10. Customer Profitability

In the Oracle Profitability Manager 12.0 Release, Customer Profitability provides the ability to compute customer and household level profitability. This feature incorporates all cost data, with the related revenue data to segment customers and households into different profitability rankings for reporting and analysis.

In this release, all features are user interface driven and conform to the Business Rule architecture used across all Corporate Performance Management Applications. This means that Customer Profitability rules use versions and conditions, and there are screens for the user to define all the components of each rule. In addition, the value index formula used for customer and household profitability calculations is customizable.

The results from this process may be segmented into different profitability ranks, or stratifications, and then integrated with the marketing applications to provide support for direct marketing campaigns. This provides true customer focused profitability analysis, and allows the business to make decisions based on profitability information.

Please note that the management of the customer data, and the management of the relationships between customers and households is accomplished outside Oracle’s Profitability Manager application. Customer Profitability groups accounts into households, but designation of the accounts and households is separate from this application.


A number of seeded reports produced with the Oracle Discoverer reporting application have been included in this release of Oracle Profitability Manager. For full details please refer to the User Guide.

5.19.4. Features Not Included

5.19.4.1. Common Features

5.19.4.1.1. Formula ID The formula ID is not supported in this release of Oracle Corporate Performance Management applications.

5.19.4.1.2. Discoverer Integrator Discoverer Integrator is no longer needed for support in producing seeded Discoverer reports.

5.19.4.1.3. SQL Talk


The ability to review the data in a table or view is provided by the Data Inspector therefore SQL Talk is no longer supported.

5.19.4.2. Oracle Profitability Manager Features

5.19.4.2.1. Activity-Based Budgeting Activity-Based Budgeting functionality provided in ABM 11i is not supported in this release of Oracle Profitability Manager.

5.19.4.2.2. Allocation Methods Dimension Substitution – Dimension Substitution rules map costs between accounts or cost centers. Organizational consolidation or subsidiary spin-offs calculations are enabled by dimension substitution methods. This was referred to as a leaf-to-leaf table ID (such as setting ORG1 to ORG2) in version 4.5 of Performance Analyzer.

5.19.4.2.3. Spreadsheet Import Templates Spreadsheet import templates previously available in ABM 11i is not provided in this release. Data is available directly from the E-Business Suite, or from external applications through the data loader processes.

5.19.4.2.4. Model The ABM concept of model is no longer provided. Please note that other components of the architecture, such as value sets, ledgers, data sets, and dataset types support the ability to ‘model’ an organization.

5.19.4.2.5. Navigator The Navigator Functionality from ABM 11i is not supported in Oracle Profitability Manager.

5.19.4.2.6. TCA Integration The integration of customer data from Oracle’s E-Business Suite TCA Customer Model is not supported in this release.


5.20. Oracle Public Sector Budgeting

5.20.1. Overview

Oracle Public Sector Budgeting allows managers to efficiently and accurately generate and maintain complete, multi-year capital and general operating budgets that include budgeting for personnel services. It incorporates innovative Oracle Workflow technology for decentralized budget distribution, submission and approval routing.

5.20.2. Features

5.20.2.1. Enhanced Position Default Rules

The enhanced Position Default Rules includes a new set concept, changes in default rules behavior and separation of FTE Allocation Profiles.

5.20.2.1.1. Default Rule Set

Default rules are grouped into a set, by which default rules are applied. This feature allows users to prescribe only the relevant rules for a specific data modification need.

5.20.2.1.2. Default Rules

The behavior of default rules has been changed. Previously, some default rules were systematically determined to skip for occupied positions. For example, default rules for Salary Assignments were skipped for occupied positions. The enhanced default rules allow users to control whether the rules are applied or not based on an overwrite option without regarding the vacancy status of the positions. For example, default rules for Salary Assignments with an overwrite option are applied to both vacant and occupied positions and the rules will even overwrite any existing Salary Assignments with those from the rules. This feature allows users to be in control of their data transformation exercise for budgeting purposes. In addition, users gain data transformation flexibility through the support of more than one global Default Rule.

5.20.2.1.3. FTE Allocation Profiles

The FTE Allocation are separated from Default Rules and are displayed under a new FTE Allocation Profiles window with its own navigation menu by the same name. This separation better conveys the nature of FTE Allocation Profiles in that they are never applied along with Default Rules via the Assign Position Defaults concurrent program. Rather, they serve as lookup values for position cost calculations.


5.20.2.2. Configurable Position Worksheet Function Security

Users are able to optionally disable the following functions from Worksheets through Function Security configurations. Generally, these function exclusions


are used when some users need to have Line Item Worksheets access but don’t need position data access.

• The Position button in the Worksheet Summary window that accesses Position Worksheets

• The Position Details modal window accessed from the Tools-Positions top menu from Line Item Worksheets

Users are able to optionally disable the following functions from Position Worksheets through Function Security configurations. Generally, these function exclusions are used when some users need to have write access on only certain components of position data but not all components.

• The Create Position button in the Select Position window

• The Revise Projections button in the Select Position window

• The Attribute region in the Assignments tab in the Position Worksheet window

• The Create Default Assignments button in the Assignments tab in the Position Worksheet window

• The Salary sub-tab in the Assignments tab in the Position Worksheet window

• The Element sub-tab in the Assignments tab in the Position Worksheet window

• The Distribution sub-tab in the Assignments tab in the Position Worksheet window

• The FTE by Service Package tab in the Position Worksheet window


5.20.2.3. Posting Statistical Balance

Users who budget statistical amounts in Worksheets are able to post the statistical budget amounts to Oracle General Ledger. Users are also able to revise statistical budget amounts in Budget Revisions.


5.21. Oracle Public Sector Financials

5.21.1. Overview

Oracle Public Sector Financials extends E-Business Suite functionality and provides the basis for an integrated financial management solution for public sector agencies.

5.21.2. Features

5.21.2.1. Centralized and Configurable Accounting


Oracle Public Sector Financials is fully integrated with Oracle Subledger Accounting.

5.21.2.2. Integrated Budgetary Control

Budgetary Control validation has been integrated with Oracle Subledger Accounting. The validation of the accounting entries is also validated to ensure it meets budgetary control requirements.

The Enhanced Funds Checker, previously an Oracle Public Sector International feature, allows customers to have multiple funding budgets and budgetary control setups for a single context.

5.21.2.3. Flexible Reporting and Inquiry

The data generated by the budgetary control and accounting reports is provided to allow users to take full advantage of the features of XML Publisher and to allow for flexible formatting.


5.22. Oracle Receivables

5.22.1. Overview

Oracle Receivables is an invoicing, payment, deduction, and revenue management application that streamlines your order-to-cash process while providing strong financial controls and strategic financial information.

5.22.2. Features

5.22.2.1. Revenue Management Enhancements

5.22.2.1.1. Partial Period Revenue Recognition Partial Period Revenue Recognition enables the generation of revenue recognition schedules that respect the start and end dates of contractual obligations. Receivables’ delivers new, configurable accounting rules to determine the treatment of revenue allocations for partial periods. For a contract that goes into effect in the middle of the current accounting period, revenue may be recognized for a partial, prorated amount.

5.22.2.1.2. Revenue Deferral Reasons Event-Based Revenue Management allows users to define revenue deferral reasons and corresponding revenue recognition events specific to their business practices. The new feature supports deferral reasons for both goods and services.

5.22.2.1.3. COGS and Revenue Matching The matching principle of accounting states that each expense item related to revenue earned must be recorded in the same accounting period as the revenue it helped to earn. The new COGS and Revenue Matching feature satisfies this matching principle by synchronizing the recognition of revenue with the recognition of associated COGS. For example, if revenue is partially recognized, the corresponding COGS is proportionately recognized.

5.22.2.1.4. Enhanced Payment-Based Revenue Recognition

With the changing regulatory environment, companies are turning to payment based revenue recognition as the answer to meeting strict revenue recognition rules for specific business transactions. In partnership with Lease Management and Loans, the newly enhanced Event-Based Revenue Management feature achieves payment based revenue recognition by associating transaction lines with revenue impacting contingencies. Revenue for impaired loans, evergreen-leasing agreements, and various miscellaneous fees can now be automatically deferred at first and, then, recognized when customers pay. This feature can be extended to any other feeder system using transaction interfaces.

This feature was first released in Financials Family Pack G


5.22.2.2. Line Level Cash Applications The Line Level Cash Applications solution allows the application of receipts to specific transaction items such as individual lines, groups of lines, or tax or freight buckets. From the receipt workbench, you are able choose whether to allocate cash to the entire transaction or to apply amounts against specific items according to the customer remittance.

5.22.2.3. Funds Capture Enhancements Uptake

Oracle Receivables uptakes Oracle Payments’ new funds processing functionality, including the new customer bank accounts model, to support the automated, electionic funds capture via Credit Cards, ACH, and bank-to-bank transfers.

Oracle Payments stores and handles all payment related information for automatic payment processing. This seamless integration provides better real-time payment processing status information to Receivables users. For more detail please see the Oracle Payments section of this document.

5.22.2.4. Refunds Enhancements

Oracle Receivables is fully integrated with Oracle Payables to deliver a seamless, automated process to generate check and bank account transfer refunds for eligible receipts and credit memos. To maintain strict security over refunds, users may choose to leverage the approval workflow process available in Oracle Payables.

5.22.2.5. Credit Card Error Handling

For a merchant, who wants to secure timely payment, it is vital to respond promptly to credit card errors. The new Credit Card Error Handling feature in Oracle Receivables provides a quick and efficient method to handle credit card errors that occur during payment authorization and capture.


5.22.2.6. Credit Card Chargebacks

Cardholders can dispute credit card charges with their card-issuing bank and when they do, the merchant is ‘charged back’ by the card's issuing bank. This new feature allows merchants to reconcile balances accurately by recording credit card chargebacks in the Receivables system as a specific activity against a receipt.

5.22.2.7. Deduction Management

5.22.2.7.1. Open Receipt Defaulting Option

You now have the ability to choose whether you want to view open receipts by default in the receipt applications apply to list of values and the search & apply window or choose to keep them hidden.

5.22.2.7.2. Claim Information Sharing


Additional Claim information will be available in the Receipt Applications and Search and Apply application windows, giving Receivables Clerks key information to perform receipt-to-receipt applications of open claims.

These features were first released in Financials Family Pack G

5.22.2.8. Balance Forward Billing

Balance Forward Billing is an enhanced version of the existing consolidated billing functionality for industries where customers are billed for all their account activity on a regular, cyclical basis.

Balance Forward Billing provides the ability to setup cycle-based billing at the account or account site levels, enable event based billing, and leverage user-configurable billing formats provided by Oracle Bill Presentment Architecture.

5.22.2.9. Late Charges

Receivables delivers enhanced Late Charges functionality enabling the creation of standard late charge policies that can be assigned to customer accounts or account sites. Flexible policy configurations include multiple interest calculation formulas, transaction and account balance thresholds, and currency-level rate setups. Additionally, charges may be modeled as different document types such as adjustments, debit memos, or interest invoices depending on the business need.

5.22.2.10. Customer Standard User Interface Redesign

The Customer Standard form has been redesigned as an HTML-based user interface to provide a more streamlined and intuitive customer data management flow. Customer data entry is tightly coupled with data quality management tools to maintain the integrity of customer data.



With enhanced Multi-Org Access Control feature in Oracle Receivables, access to transactional data for multiple operating units is now available to users with a single responsibility. By leveraging this feature in a shared services environment, companies can achieve significant savings in operating costs without compromising data security.


5.22.2.12. E-Business Tax

Oracle E-Business Tax is a new infrastructure for tax knowledge management and delivery using a global system architecture that is configurable and scalable for adding country specific tax content. As the single point solution for managing transaction-based tax, Oracle E-Business Tax uniformly delivers tax services to Oracle E-Business Suite business flows through one application interface. For more details, please see the Oracle E-Business Tax section of this document.

In Oracle Receivables, item lines automatically generates one or more tax lines depending on tax jurisdiction and setup.

5.22.2.13. Legal Entities

The new Legal Entity architecture provides the ability to model an enterprise’s legal organizational structure and define rules and attributes specific to legal entities. With adoption of the Legal Entity architecture, Oracle Receivables captures transactional data within the context of legal entity owning this data, thus enabling better, more streamlined statutory compliance.

In Oracle Receivables, Legal Entities is visible explicitly on receivables' transactions.



Oracle Receivables leverages Oracle Subledger Accounting to provide detailed, fully auditable accounting representations of Receivables transactions. Via a flexible rules-based methodology, users can easily create and modify their accounting policies, rapidly implement changing external or regulatory requirements with a minimum of disruption, and create multiple representations of transactions to meet fiscal and management reporting needs simultaneously.

5.22.2.15. Receivables Reconciliation Enhancements

Easily reconcile your receivables using enhanced reporting. Quickly match your transactional data to your accounting data. Highlight the possibility of incorrect set up with newly added exception reporting that suggests potential reconciling items. Reconcile Receivables to the General Ledger using one flexible report that automatically compares account activity by GL account. Audit your balance sheet accounts in Receivables with a cumulative balance report that lists details making up the account balance.



5.22.2.16. Additional Bills Receivable Reference Field

A new reference field will be added to the Bills Receivable workbench to capture additional information regarding your Bills Receivable.


5.22.2.17. Collections Workbench Obsolescence

The Collections Workbench module in Oracle Receivables is obsolete in this release. Like functionality is provided by Oracle Advanced Collections, including customer collections interactions and correspondences, transaction processing, and dunning activities as well as additional features. A migration white paper and scripts will be provided to Receivables customers moving to Oracle Advanced Collections. For more information see the Oracle Advanced Collections section of this document.

5.22.2.18. Bills of Exchange Obsolescence

The Bills of Exchange feature is obsolete and replaced by the Bills Receivable feature. The Bills Receivable feature provides a comprehensive solution to managing the entire life cycle of bills receivable: creation, acceptance, remittance, updates, history, and closing.

5.22.2.19. Trade Accounting Obsolescence

The Oracle Trade Accounting feature is obsolete and replaced by Oracle’s Deduction Management solution. The Deductions Management solution is delivered in partnership between Oracle Receivables, Oracle Trade Management, and Oracle Credit Management products and provides a robust and efficient way to handle customer deductions and overpayments. A Deductions Management whitepaper is currently available on Metalink.

5.22.2.20. AP/AR Netting

The matching of open receivables and open payables is automated. You are now able to determine whether you or your trading partner has a greater balance outstanding and update your books, collect payments or make payments accordingly.

5.22.2.21. Golden Tax Adaptor for Mainland China

Laws in the People’s Republic of China require the use of a government certified tax software called ‘Golden Tax’ for VAT calculation, statutory tax reporting and generating and printing VAT invoices. Golden Tax Adaptor enables Oracle’s customers in China to interface their invoices, credit memos and debit memos from Oracle Receivables to the Aisino Golden tax software in order to calculate VAT, generate and print VAT invoices and report tax to the Chinese Tax authorities. The user can use discrepancy and mapping reports to audit and


reconcile the discrepancies in data between Receivables invoices and Aisino generated VAT invoices.

Aisino (航天信息股份有限公司)is the main supplier of Golden Tax software in China.


5.23. Oracle Transfer Pricing

5.23.1. Overview

Oracle Transfer Pricing allows Financial Services Institutions to measure and manage their interest margin. With interest margin being the primary driver in determining profitability, Oracle Transfer Pricing is commonly used together with Oracle Profitability Manager by Financial Services Institutions looking to measure and report on account, customer, product or any other dimensional views of profitability.

The following important new features specific to the Oracle Transfer Pricing application are included in the12.0 release, in addition to the robust new features and functionality common across the Oracle Enterprise Performance Foundation. For details of the Oracle Enterprise Performance Foundation features see the Oracle Enterprise Performance Foundation section in this document.

• Enhanced Multi-Currency Support • Single Assumption/Processing Dimension (Product Leaf) • Node Level Assumptions • Conditional Assumptions • Enhanced Ledger Migration Dimensionality • Cash Flow Edits Administration • Interest Rate Code Administration • Seeded Reports

5.23.1.1. Enhanced Multi-Currency Support

The following three new features in Release 12.0 make it easier and more efficient for users to generate results in a multi-currency environment:

• The ability to define transfer pricing and prepayment methodology at the intersection of product and currency. The system supports the generation of transfer rate results for multiple currencies with different sets of methodologies per currency in a single execution

• The ability to generate charges/credits for funds based on entered and functional currency. In previous releases, results were migrated to the ledger table in local currency only. In Release 12.0, users have the option of converting charge/credit amounts to the functional currency designated for the ledger being processed

• The ability to define Transfer Pricing Option Cost assumptions on multiple valuation yield curves. In Release 12.0, users can specify a different risk free interest rate yield curve for each currency available for processing.

5.23.1.2. Single Assumption/Processing Dimension (Product Leaf)

Consistent with efforts to implement a single, integrated solution and offer quick implementation ‘out-of-the-box’ services to our clients, Oracle Transfer Pricing assumption definitions are based on a new, single dimension, the Line Item dimension.


Node Level and Conditional Assumptions functionality, discussed in the following sections are key new features in Release 12.0 to assist clients in their use of a single dimension for Business Rule assumption creation and processing.

5.23.1.3. Node Level Assumptions

In Release 12.0 users are able to define their transfer pricing and prepayment methodologies based on a new hierarchy-based assignment feature. Children of parent nodes on a hierarchy automatically inherit the methodology assumptions defined for the parent node. Using a properly constructed hierarchy, the amount of work previously required to define a set of assumptions can be significantly reduced.

5.23.1.4. Conditional Assumptions

Conditional Assumptions incorporate IF-THEN-ELSE logic for defining transfer pricng and prepayment assumptions using key attributes of the underlying data being processed (e.g., term to maturity, origination date, repricing frequency.)

The Oracle Transfer Pricing application segregates portfolios of instruments based on common characteristics and assigns a certain assumption to each of the groupings. For example, the user can slice a portfolio of commercial loans based on repricing characteristics and assign one transfer pricing method to the fixed-rate loans and another to the floating-rate loans.

The combination of Conditional Assumptions, with the ability to apply transfer pricing methodologies at any hierarchical level in Release 12.0, make the implementation process more efficient and eliminate the need to create and maintain separate dimension values.

5.23.1.5. Enhanced Ledger Migration Dimensionality

Oracle Transfer Pricing provides greater flexibility in the process of migrating transfer pricing results from customer account tables to the management ledger table and generating corresponding charges, credits and option costs included in profitability measurements. Users are able to specify migration requirements for a combination of an extended list of dimensions, including up to 10 user-defined dimensions. This feature enhances existing capabilities for profitability reporting across organizational, product, channel, geography and user defined dimension performance measurement results.

5.23.1.6. Cash Flow Edits Administration

Seeded cash flow edits used for cleansing data prior to its submission for processing in the Oracle Transfer Pricing cash flow engine are launched directly from within the application. In Release 12.0, Oracle Transfer Pricing users are no longer required to use a separate application, or wait for another, authorized party to run that separate application, to perform this critical data cleansing activity. Production cycles are more efficient as a result.


5.23.1.7. Interest Rate Administration

The administration of market interest rates and transfer rates, as well as the loading and maintenance of corresponding historical rate values is performed directly within the Oracle Transfer Pricing application in Release 12.0. Historical rate information is loaded manually or through use of Web ADI, a new feature that provides an Excel spreadsheet-based interface capability for the import or export of data.


A number of seeded reports produced with the Oracle Discoverer reporting application have been included in this release of Oracle Transfer Pricing. For full details please refer to the User Guide.


5.24. Oracle Treasury

5.24.1. Overview

Oracle Treasury is a complete solution for managing global treasury operations with improved efficiency, profitability, and control.

5.24.2. Features

5.24.2.1. Cash Pooling Across Legal Entities

Cash Pooling, in general, is available to Oracle Cash Management users and that feature is described in much greater detail in that section of this document. Oracle Treasury provides supplemental functionality that may be necessary for some users. Specifically, Oracle Treasury allows inclusion of the fund transfers generated by the physical cash pool activity into the intercompany loans so that the balances and interest can be tracked between internal parties (aka ‘In House Banking’).

Users can have physical cash pool transactions created in Oracle Treasury rather than Oracle Cash Management. In this case, Oracle Treasury automatically creates both bank account transfers within a single legal entity as well as intercompany funding transactions across legal entities. Intercompany funding transactions also maintain running loan balances between internal parties and interest rate structures are used to calculate interest income and expense. With this configuration, payment processing and accounting is managed via Oracle Treasury.


5.24.2.2. Foreign Exchange Hedge Effectiveness and Accounting Under IAS 39 and FAS 133

This feature completes the breadth of functionality needed to support foreign exchange forward hedging of Payables and Receivables as defined by IAS 39 and FAS 133. This new feature expands existing functionality that already allows users to view real-time Payables and Receivables exposures, as well as designate and track related foreign exchange forward hedges.

Oracle Treasury now also automatically calculates the retrospective effectiveness of these hedges, comparing historical gains or losses of the foreign exchange forward contracts to the offsetting losses or gains associated with the underlying exposures being hedged. Oracle Treasury allocates the effective and ineffective portions of these revaluation amounts and automatically generates proper accounting entries under IAS 39 and FAS 133. This feature also delivers the ability to audit prospective effectiveness testing results, as well as reclassify the effective portion, or deferred, gains and losses back into current period earnings when the underlying exposure is realized.



5.24.2.3. Automatic Bond Rate Resetting

This feature provides the ability to automatically reset floating rates for bonds based on benchmark rates like LIBOR as well as margin adjustments assigned at the bond issue level. Users are able to schedule this program to run daily or run it on an ad hoc basis. It behaves like existing reset functionality for other floating rate instrument types like Wholesale Term Money and Interest Rate Swaps. All bond coupons matching the program parameters, assigned to floating rate Bond Issues, and passing a set of validations have their coupon rates reset automatically based on latest market data and the associated coupon amounts is recalculated for cash flow reporting and accounting purposes.

5.24.2.4. Bank Account Update Program

Treasury long-term investment or debt instruments often require periodic cash flows until final maturity, which may be many years into the future. The bank accounts expected for payment processing are required input during the original deal entry for positioning and forecasting purposes. However, in practice, this bank account information may change throughout the life of the deal for any number of reasons. With this new program, it is possible for users to make mass updates to expected settlement accounts in the future rather than requiring users to make these adjustments on a case by case basis during individual settlement processing.

5.24.2.5. Inter-Account Transfer Enhancements

Inter-Account Transfers has been enhanced in several ways. Users are able to track not only the effective transfer date but also the date when the transfer was arranged. Also, user-defined Descriptive Flexfields are available at the individual Inter-Account Transfer level to capture extended information for reporting purposes. Finally, users have an option to include Inter-Account Transfers in the Transaction Validation process, similar to all other deal types. A new system parameter determines if these internal transactions require validation before they can be authorized for settlement.


5.24.2.6. Bank Account Model

Internal bank accounts in Oracle Treasury are defined and managed through a single access point, making set up, maintenance, and control much easier and more reliable with this new feature. Please refer to the Bank Account Model feature description in the Oracle Cash Management section of this document for more information.

5.24.2.7. Bank Account Balances

Management of bank account balances, including Interest Set Offs for notional balances, is enhanced and migrated to Oracle Cash Management. Please, refer to the Bank Account Balances, and Cash Pooling feature descriptions in the Oracle Cash Management section of this document for more information.


5.24.3. Terminology

Term Definition

LIBOR LIBOR stands for the London Interbank Offered Rate and is the rate of interest at which banks could borrow funds from other banks, in marketable size, in the London interbank market. LIBOR is also widely used around the world as a benchmark rate for a variety of financial instruments.


5.25. Oracle U.S. Federal Financials

5.25.1. Overview

Oracle U.S. Federal Financials extends E-Business Suite functionality and provides the basis for an integrated financial management solution for U.S. Federal agencies.

5.25.2. Features

5.25.2.1. Centralized and Configurable Accounting


Oracle U.S. Federal Financials is fully integrated with Oracle Subledger Accounting.

5.25.2.2. Integrated Budgetary Control

Budgetary Control validation is integrated with Oracle Subledger Accounting. The validation of the accounting entries is also validated to ensure it meets budgetary control requirements.

The Enhanced Funds Checker, previously an Oracle Public Sector International feature, allows customers to have multiple funding budgets and budgetary control setups for a single context.

5.25.2.3. Flexible Reporting and Inquiry

The data generated by the budgetary control and accounting reports is provided to allow users to take full advantage of the features of XML Publisher and to allow for flexible formatting.


6. Daily Business Intelligence

6.1. Daily Business Intelligence (DBI) for Compliance

DBI for Compliance 8.0 is a new product releasing on the DBI framework. In this release, the focus is on financial statement certification dashboard and its relevant reports. It provides the top-level summary of certifications for signing officers. Under Sarbanes Oxley Section 404, issuer must provide ‘an assessment, as of the end of the issuer's fiscal year, of the effectiveness of the internal control structure and procedures of the issuer for financial reporting’. This is the certification functionality provided in Oracle Internal Controls Manager.

As the signing officers, users of this dashboard can view the certification status and progress, as well as issues and remedial actions all at once. With further interest, they can drill to the supporting reports for details. Continue drilling from reports to transaction pages allows them to take any immediate remedial actions, such as filing a remediation for a finding in the certification.

6.1.1. Overview

DBI for Compliance has a new Financial Statement Certification dashboard. This dashboard provides an overview of the company’s financial and process certifications. DBI for Compliance creates this new dashboard to provide information on certification status and progress:

Financial Statement Certification

This dashboard provides links to reports for more in-depth analysis of the certification. These links include those on Key Performance Indicator (KPI) titles, region titles, and table values.

6.1.2. Features

6.1.2.1. Financial Statement Certification Dashboard

Users are able to investigate problem areas and their corresponding solutions using new reports and Key Performance Indicators (KPIs). The Financial Statement Certification dashboard contains new KPIs to enable users to see the number of open remediation and findings for any given period, certification type, or certification.

Users are able to further analyze trouble areas across certification type or certification by choosing different parameters on the dashboard. This dashboard also provides further drill capability to the following detail reports:

• Findings Summary • Remediation Summary • Issue Summary

One important breakdown for signing officers to determine whether or not they should sign off a statement is the one for significant account evaluation. With the


pie chart, users are able to see the effective ones percentage in a graphical representation, in contrast to the not evaluated portion and the ineffective one.

Users are also able to utilize the tabular representation of evaluation data to drill to troubled areas per account across certifications.

You can use the links in the Financial Statement Certification dashboard to view the following reports:

• Significant Account Evaluation Status • Signification Account List

Users can monitor certification progress and status using the certification related Key Performance Indicators (KPI), graphs, and tables. The two certifications that this dashboard report on are Business Process Certification and Organization Certification.

Signing officers can view not only the breakdowns of certification results with the graphical representation, but also the troubled areas by different organizations and processes.

Drilling on the numbers on the tables takes users to the interested organization or process with more detailed analysis possible.

6.1.2.2. Open Remedial Action Summary

This report shows open remedial actions across engagements. Users can choose to view a subset of the data by the following parameters:

• Quarter • Significant Accounts • Organizations • Processes • Reasons • Priorities • Phases

The report shows data by 3 graphs stating the counts of open findings and remediation, as well as aging information for these two objects respectively. The table for this report shows more details on open, past due (if system date > need by date), Late % of Open, average days that these objects have been opened, and age breakdown into different user definable age buckets.

6.1.2.3. Significant Account Evaluation Result

This report shows different account evaluation results in a pie chart and a table. Users can choose to view one certification or across certifications. Clicking on the numbers of evaluation takes the user to the ‘Significant Account Evaluation Summary’ report.

6.1.2.4. Significant Account Evaluation Summary

This report shows evaluation results and trouble areas for different objects by significant accounts. Data are presented through 3 horizontal stack bar graphs


and a comprehensive table. Users can drill from the results table to various list reports, such as risk list report.

6.1.2.5. Organization Certification Result

This report shows different organization certification results in a pie chart and a table. Users can choose to view one certification or across certifications. Clicking on the numbers of certification results takes the users to the Organization Certification Summary report.

6.1.2.6. Organization Certification Summary

This report shows certification results and trouble areas for different objects by organizations. Data are presented through 3 horizontal stack bar graphs and a comprehensive table. Users can drill from the results table to various list reports, such as risk list report.

6.1.2.7. Process Certification Result

This report shows different process certification results in a pie chart and a table. Users can choose to view one certification or across certifications. Clicking on the numbers of certification results in the table takes the users to the Process Certification Summary report.

6.1.2.8. Process Certification Summary

This report shows certification results and trouble areas for different objects by processes. Data is presented through 3 horizontal stack bar graphs and a comprehensive table. Users can drill from the results table to various list reports, such as risk list report.

6.1.2.9. List Reports

This release contains various list reports for different objects. This enables drilling to transaction functionality. The following list reports are provided:

• Risk List Report • Control List Report • Audit Engagement List Report • Organization List Report • Process List Report • Significant Account List Report

6.1.2.10. Compliance Environment Change

One important variable to be considered when looking at certification results is the stability of the compliance environment. DBI for Compliance presents changes of different objects that are related to the compliance environment. These changes include updating, addition, and deletion of any of the following objects:

• Processes • Risks • Controls


6.1.2.11. View Significant Account Details

Users can click on the Significant Account List report links available in the dashboard for easier access to the list report. This report provides details of significant accounts that are of users’ interest by choosing different parameters. They can use this report to view details of account without going into the application. The report could be used as an action list for the signing officers to follow up on.

6.1.2.12. Manage Closing Performance Findings and Remediation

DBI for Compliance uses the Business Intelligence Bucketing functionality to categorize aging on different open objects, such as findings and remediation. Users can change the age bucket definitions, including names and ranges.

6.1.2.13. Drill and Pivot the Report Layout

All DBI for Compliance reports use the Performance Management Viewer (PMV) Drill and Pivot feature. This feature enables users to drill down to a smaller set of data, at the same time as they pivot the report to view the data by a different category.

For example, if user runs the Open Remedial Actions Summary report from the Open Findings KPI, it initially displays a summary of open findings and remediation by priority. If the user selects the drill and pivot icon at the beginning of a priority’s row, it will provide a list of pivot options, such as Phase and Reason, for which the data will be reported by. If the user selects Reason, for example, the report will change to display Reason in the View By parameter, and the selected priority in the Priority parameter. User can then see the list of open remedial actions of high priority by different reasons..

User can continue to drill and pivot the report data to pinpoint a specific set of data and analyze it against your selected criteria.

The following reports support Drill and Pivot:

• Open Remedial Actions Summary • Significant Account Evaluation Result • Organization Certification Result • Process Certification Result • Compliance Environment Change Summary


6.2. Daily Business Intelligence for Financials

6.2.1. Overview

• This release enhances the offering of Oracle Financials Intelligence by introducing four new out-of-the box reporting solutions: Receivables and Collections Management, Profit and Loss Analysis, Expense Analysis, and Funds Management.

• Receivables and Collections Management is for analyzing a company’s Receivables and Collections operations efficiency. It provides Receivables and Collections managers with key performance indicators and supporting reports that enable them to identify, monitor and resolve the issues associated with the efficiency of their departments’ operations. Improved receivables and collections operations result in more efficient use of the company’s cash, which impacts the company’s bottom line.

• Profit and Loss Analysis is for evaluating the information related to a company's revenue, cost of goods sold, operating expenses, gross margin and operating margin. The dashboard features a company/cost center/account-oriented view of the company's key profit and loss activity.

• Expense Analysis goes beyond Profit and Loss Analysis, providing a more detailed analysis of expenses, including additional drill downs to Fixed Assets, Payables, Internet Expenses and Purchasing.

• Funds Management dashboard provides expense analysis that is specifically targeted for the public sector.

In addition, existing dashboards have been enhanced;

• Several new reports have been added to the Payables dashboards

• New features have been introduced to the Profit and Loss and Expense Management dashboards

6.2.2. Features

6.2.2.1. Receivables and Collections Management

With the information provided by the Receivables Management and Status Dashboards, managers can easily determine the most pressing items and clarify the day-to-day agenda for their departments. With up-to-date information about customers’ activities, Receivables and Collections managers can direct their departments to resolving past due accounts before they become a serious problem. The supporting reports provide additional information about delinquent customers enabling collections managers and clerks to identify the most effective collection strategies.


DBI for Receivables empowers managers by enabling the analysis of key performance indicators (“KPIs”) across multiple dimensions, such as time, operating unit, customers, and collectors. The KPIs available out-of-the-box include; Days Sales Outstanding, Average Days Delinquent, Open Receivables and Past Due Receivables Amount, and Unapplied Receipts Amount. Managers can evaluate the performance of their organizations and discover systemic processing inefficiencies. In addition they can leverage valuable insight to evaluate the productivity of individual collectors.

The increased visibility enables Receivables and Collections managers to reduce the time of operational problems discovery and resolution, and therefore, increase the effectiveness of their departments. It also provides valuable insight into the state of customers’ receivables payment patterns enabling Credit Managers to formulate Credit Policies that would prevent undesired impact on companies bottom-line.

6.2.2.2. Profit and Loss Analysis

The Profit and Loss Analysis dashboard targets financial analysts and line managers who are responsible for supporting and analyzing revenue and expenditures for particular cost centers (e.g. facilities, operations and shipping) and company entities (e.g. geographic locations) across different ledgers. It focuses on analyzing and managing the large volume of journals posted to General Ledger. Profit and Loss Analysis Dashboard allows financial analysts and managers to dissect revenue, cost of goods sold and operating expenses by company, cost center, accounts, and ledger, allowing the users to thoroughly investigate activity down to the transaction line level. Profit and Loss Analysis differs from the currently available Profit and Loss Dashboard, which focuses on providing executives a broad view by Line of Business or by Manager.

Profit and Loss Analysis features a company and cost-center based security model. It offers expanded drill capabilities into revenue and expense sources down to General Ledger, Payables, Fixed Assets, Internet Expenses, and Purchase Orders. In addition, a user-defined dimension can be assigned to additional segment in the chart of accounts, providing the users with a finer grain of control.

With Profit and Loss Analysis, line managers and analysts are able to investigate and resolve issues concerning operational income and spending and spot anomalies as they occur during the financial period.

6.2.2.3. Expense Analysis

Expense Analysis dashboard provides up-to-date information on a company's operating expenses, and features a company/cost center/account-oriented view of the company's expense activity. It complements the Profit and Loss Analysis Dashboard by providing a more detailed analysis of expenses.

Expense Analysis targets company's financial analysts and line managers, and focuses on analyzing and managing the large volume of expense journals posted to General Ledger. Expense Analysis differs from Expense Management, which focuses on providing executives a broad view of expenses incurred by line of


businesses or by managers, and on allowing managers to easily monitor and control expenses he/she is responsible for.

Similar to Profit and Loss Analysis, Expense Analysis features a company and cost-center based security model. The drills into Payables, Fixed Assets, Internet Expenses, and Purchase Orders, as well as the ability to dissect expenses by company, cost center, accounts, and ledger, allow the user to thoroughly investigate expense activity down to the transaction line level. Finally, a user-defined dimension can be assigned to additional segment in the chart of accounts, providing the user with a finer grain of control when viewing the expenses.

6.2.2.4. DBI for Public Sector Financials

The Funds Management dashboard provides up-to-date information on available funds, budgets, encumbrances and expenses, and features a fund/cost center view of the institution’s activities.

Funds Management targets fund and cost center managers in state and local government and higher education institutions. The features included in Funds Management include a fund and cost-center oriented security model and two user-defined dimensions which can be assigned to additional segments in the chart of accounts, providing the user with a finer grain of control when viewing their data.

The Funds Management dashboard offers drill down to following reports:

6.2.2.4.1. Budget Trend by Account Detail The Budget Trend by Account Detail report provides the user with the ability to view budgets, budget trends by rolling 4 quarters or 3 months, and budget adjustments.

6.2.2.4.2. Budget Journal Entry Details The Budget Journal Entry Detail report provides the user with details around a budget journal.

6.2.2.4.3. Encumbrance Trend by Account Detail The Encumbrance Trend by Account Detail report provides the user with the ability to view encumbrance trend by detail values of the balancing, cost center and natural account chart of accounts segments.

6.2.2.4.4. Encumbrance Journal Entry Details The Encumbrance Journal Entry Detail report provides the user with the ability to view details around an encumbrance journal. When applicable, the Document Number column supports an external drill to the purchase order document providing the user the ability to view the actual order in detail.

6.2.2.5. DBI for Payables

6.2.2.5.1. Past Due Invoices Report

This report provides a summary of the past due invoices across all suppliers and all operating units. The report allows drills down to the invoice detail


level and provides the user a quick overview of current unpaid invoices that are past due.

Additional drill downs enable further investigation into what is causing these invoices to be past due. The information based on system date and doesn't use As Of Date parameter. The report displays information such as the invoice number, type, date, entered date, due date and past due days; transaction currency and amount; invoice amount and past due amount; hold information; discount information; and terms

It is accessible from the Payables Management and the Payables Status dashboards.

6.2.2.5.2. Invoice Lines Detail Report with Drilldown to Purchasing The Invoice Lines Detail report offers functional users the ability to see the invoice lines as they are presented on the original Supplier Invoice. It makes it easier for DBI for Payables users to follow up with the supplier as they are looking at the same information as is available to the Supplier. This report can be accessed from both Payables Management and Payables Status dashboards.

In addition, Invoice Lines Detail report offers the drill to Purchase Order details. If a single Purchase Order is associated with the invoice line, the user is able to click on the Purchase Order number to see the Purchase Order. If multiple Purchase Orders are associated with the invoice line, the word ‘Multiple’ appears in the column.

6.2.2.5.3. Enhanced Incremental Load Performance The incremental request for the Payables Management and Payables Status dashboards has been enhanced to accelerate the performance.

6.2.2.6. Budget/Forecast Import from General Ledger

This feature allows the flexibility of importing budgets and forecast into the DBI for Financials Intelligence dashboards like Profit and Loss, Expense Management and Expense Analysis.

Now, the user has the ability to import budgets and forecasts that are stored in General Ledger. If budget and forecast are stored in external systems, the user can still use the existing functionality of WebADI interface to import the budgets into the dashboards.

6.2.2.7. Role Based Security for Profit & Loss and Expense Management Dashboards

Role-based security provides managers with the ability to grant another employee, as a proxy, limited access to a subset of secured information in DBI for Financials.

This functionality is available only for dashboards that are secured by Manager (for example, Profit and Loss, Expense Management). Managers can access this functionality using the Delegate link at the top of the dashboard.


6.2.2.8. User Defined Dimension

A new dimension has been introduced to allow companies to map to any segment in their chart of accounts. This enables the user to view and filter their expenses by a fourth segment, in additional to the segments that are already supported by DBI for Financials Intelligence like company, cost center, and natural account.

6.2.2.9. DBI for Financials Back-End Enhancements

To improve the consistency with the underlying transactional modules, Daily Business Intelligence (DBI) for Financials has uptaken several new Release 12.0 features from the Financials transaction applications.

• AP Invoice Lines • Ledger Architecture • Subledger Accounting • Revenue Management Enhancements


6.3. Financials Intelligence

6.3.1. Overview

The BIS End User Layer (EUL) has been updated to be compatible with the new Release 12.0 data model changes from the Oracle Financials transaction applications.

The Business Intelligence System (BIS) reports from previous releases are obsolete.


7. Customer Data Management

7.1. Customer Data Hub

7.1.1. Overview

The largest single area of the Customer Data Management (CDM) product family, this area covers not only the products Customer Data Hub and Customer Data Spoke, but also the underlying data model, Trading Community Architecture (TCA). Therefore, this section is important not only for Customer Data Hub & Spoke customers, but also for customers of any E-Business Suite application(s) that uses the TCA data model.

7.1.2. Features

7.1.2.1. Tax Geography Hierarchy Setup UIs

User interfaces are provided to create and manage a foundation of geographies and geographical hierarchies for the purpose of tax validation. Once the foundation of geographies is established, tax administrators can define flexible zones without impacting the underlying geographies themselves.

7.1.2.2. Multi-Org Access Control (MOAC)

The Multi-Org Access Control initiative allows application users to access to multiple operating units via a single responsibility. Changes have been made in the following areas to support this functionality:

• TCA org striped views • TCA Public API’s • Customer Merge • Customer Import • Customers Online Transactions Viewer • Customers Online Accounts • Account Layer CPUI components

This feature provides enhanced support for ‘Shared Service Center’ business models.

7.1.2.3. Tax and Geography Validation

This feature provides an equivalent level of functionality to the existing tax-based address validation solution that will be obsolete in release12.0. It provides a real-time address-validation solution based on tax jurisdictions, plus a new geography validation solution based on a manually entered geographical hierarchy. The solution includes validating the address both while it is being entered in the UI and at the API level. Based on the nature of tax data, this feature only validates an address down to the postal code level and is not intended to provide street level validation, nor postal delivery validation.


7.1.2.4. Data Quality Management Enhancements

The Data Quality Management (DQM) tool delivers enhanced administration interfaces with a new level of audit detail and maximized out-of-the box performance. A new overview page provides relevant and timely information about the status of important DQM processes and setups, while more consistent attributes and transformations naming conventions improve the users experience. Sample DQM structures including word replacement lists, attributes, transformations and match rules, have been enhanced to improve matching effectiveness and performance for those customers that choose to leverage these structures directly out-of-the-box. A new set of diagnostic reports have been introduced to give users access to DQM setup information including configuration settings, performance of activities like staging, as well as health indicators of key setup entities such as the indexes. Lastly, a new DQM public API is available for integration into external source applications for performing real-time duplicate checks against the core Customer Data Hub repository.

7.1.2.5. Customer Data Librarian Enhancements

Customer Data Librarian application users are able to schedule the submission of System Duplicate Identification Batches, and additionally set them to be recurring. New business events have been introduced for the Party Merge and Account Merge features as a notification to spoke applications that a merge between identified parties has occurred. New API services are also available to directly submit merge requests to the Data Librarian application or extract merge details, ensuring that duplicate identification efforts can be extended to end users outside of the eBusiness Suite.

7.1.2.6. Integration Services

Oracle Customer Data Hub (CDH) Integration Services are targeted at the integration developer responsible for enabling bi-directional synchronization of customer information between the Oracle Customer Data Hub and related Data Spokes. These services include the following modules:

7.1.2.6.1. Foundation The Integration Services Foundation provides a business object-based abstraction of the Oracle Trading Community Architecture (TCA) to soften the learning curve associated with implementing a customer data integration initiative using Oracle CDH. The foundation includes a set of seventeen (17) business objects that encapsulate customer information in the form of four (4) composite objects—including person, organization, person customer and organization customer—as well as thirteen (13) granular objects—including organization contact, address, phone number, customer account, and others—to encapsulate the TCA schema in the form of database objects.

In addition, the foundation includes PL/SQL API’s that offer the ability to create, update, or save these business objects to CDH with a single API call, abstracting away the complexity of the data model in favor of more easy to understand object-oriented interface. Furthermore, the foundation also delivers API’s to manage source system identifiers for business objects by encapsulating more granular interfaces based on business object definitions, allowing spokes to cross-reference their own object identifiers with CDH.


7.1.2.6.2. Business Events

The Business Events solution addresses the need for outbound events to alert spoke systems of operations performed upon business objects within the CDH. This solution complements the existing set of TCA business event callouts registered within Oracle Workflow by introducing events for operations performed upon each of the following business objects: Person, Organization, Person Customer, and Organization Customer. These business events are raised to alert subscribing spoke systems of any creations or updates to the business objects within CDH. Integration developers may write subscriptions against these events within Oracle Workflow to automate integration business processes essential to synchronize customer data between the hub and all related spoke systems.

7.1.2.6.3. Business Object Extraction

The Business Object Extraction solution provides integration developers two separate sets of object extraction procedures. A generic set of object extraction API calls may be invoked by passing an identifier for a specific business object type to receive a fully populated business object in return. Generic ‘get’ procedures are available for each of the available business objects within the CDH Integration Services Foundation. In addition to the generic extraction procedures, event-specific object extraction API’s that act in conjunction with the above-mentioned Business Events are also provided. Integration developers may write subscriptions to invoke these procedures whenever business events occur to extract and publish business objects to middleware or spoke systems. The event-specific procedures return either newly created business objects or modified portions of existing business objects to facilitate customer data integration between CDH and spoke systems.

7.1.2.7. TCA Bulk Import Enhancements

TCA Bulk Import provides improved performance by reducing the post processing time required by import batches. Customer Data Librarian users also have new features to generate import batches from directly within the Data Librarian UIs and dynamically monitor the ongoing progress of import batches.

7.1.2.8. New Workflow Synchronization

TCA currently uses the Oracle Workflow Business Event System and back-end code to synchronize person information stored in the Workflow Directory Services (WFDS). This release delivers enhancements to WFDS views, improvements to performance and improvements to the synchronization code. Support for an obsolete CRM User Hook has also been removed.


7.2. Customer Data Librarian

7.2.1. Overview

Oracle Customer Data Librarian provides companies with the ability to establish and maintain a highly accurate, duplicate free customer database. It consists of a native suite of tools and easy to use HTML user interfaces specifically designed for Information Quality (IQ) professionals. Oracle Customer Data Librarian’s broad array of data management features help consolidate customer data, identify and resolve duplicate data, and enrich customer data with content from third-party sources to make it even more valuable. Customer Data Librarian is a must-have tool for any E-Business Suite or Customer Data Hub instance.

For Customer Data Librarian, the 12.0 release is focused on the shared service support.

7.2.2. Features


The Multi-Org Access Control initiative allows application users access to multiple operating units via a single responsibility. Changes have been made in the following areas to support this functionality:

• TCA org striped views • TCA Public API’s • Customer Merge • Customer Import • Customers Online Transactions Viewer • Customers Online Accounts • Account Layer CPUI components This feature provides enhanced support for ‘Shared Service Center’ business models.


7.3. Customers Online

7.3.1. Overview

Oracle Customers Online is a Web-based application within the Oracle E-Business Suite that provides a comprehensive view into a company's central repository of customer data. Oracle Customers Online leverages the flexibility and scalability of the Oracle Trading Community Architecture (TCA) to store all customer data. It allows users to comprehend the highlights of critical customer information at a glance as well as access additional details with further navigation.

For Customers Online, the R12.0 release is focused on the shared service support for the existing features and the introduction of a new product called Citizen Data Hub specifically designed to address the citizen data integration needs of public sector agencies.

7.3.2. Features


The Multi-Org Access Control initiative allows application users access to multiple operating units via a single responsibility. Changes have been made in the following areas to support this functionality:

• TCA org striped views • TCA Public API’s • Customer Merge • Customer Import • Customers Online Transactions Viewer • Customers Online Accounts • Account Layer CPUI components

This feature provides enhanced support for ‘Shared Service Center’ business models.

Documents

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