R12 Financials

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Update R12 Financials

Brad [email protected] Consultant, Oracle E-Business Suite 1

Agenda

• Why Release 12 ?

• What do I need to know about Release 12?

• Why should customers upgrade?

• Where do I go to learn more?

• Questions?

2

Agenda





• Questions?

3

EBS R12 available since Jan. 2007

Why Release 12Why Release 12

Path to Finance TransformationLess Transaction Processing, More Business Support

Globalization“How do I manage complexity of complying with international regulations, tax codes, and financial reporting standards?”

Complexity and Costs“How can I spend less money and time on transaction processing while supporting business growth?”

Regulations and Oversight“How do I get a return on the expense of managing increasing regulatory and oversight demands and risk?”

Profitable Growth“How do I partner with the business to make the right investments in products, people, projects, and processes to drive growth?”

• Standardize processes

• Centralize accounting/tax setup and maintenance

• Consolidate finance systems

• Implement shared services

• Adopt best practices

• Manage compliance with one platform

• Integrate performance management across the business

• Synchronize financial and operational data

Agenda





• Questions?

8

General LedgerThe Center of ERP

Purchasing

GeneralLedgerGeneralLedger

Cash Mgmt

Receivables

Inventory

Assets

Projects

Payables

Other

Other

Release 12 – Evolutionary New ArchitectureCentralizing Key Architectural Components

Purchasing

GeneralLedger

Cash Mgmt

Receivables

Inventory

AssetsPayables

Projects

GeneralLedgerGeneralLedger

Centralized AccountingCentralized Accounting

Centralized Accounting

Intercompany

Global Tax

Global Tax


Banks & AccountsBanks & Accounts

Release 12 – Trading Community ArchitectureCentralization Extended

Projects

Other

Purchasing

Cash Mgmt

Receivables

Inventory

AssetsPayables

TradingCommunity

TradingCommunity

Secondary Ledger

R12 Financial Organization

LE1 LE2 LE3

Inventory

Inventory PurchasingPurchasing PayablesPayables

EU Organization 1

ReceivablesReceivablesInventory

Inventory PurchasingPurchasing PayablesPayables

US Organization 2

Ledger 1 Ledger 2 Ledger 3

Projects

Projects

Receivables

Receivables

Inventory

Inventory PurchasingPurchasing Payable

sPayable

sUS Organization 1

Ledger SetsLedger Sets

Role Based Role Based AccessAccess

BankBank& &

PaymentsPayments

InterInterCompanyCompany

Tax Tax EngineEngine

Centralized Accounting Engine Centralized Accounting Engine Centralized Accounting Engine Centralized Accounting Engine DrDr CrCr DrDr CrCr

LE & Org LE & Org SetupSetup

Other

Release 12 – Evolutionary New ArchitectureCentralizing Key Architectural Components

Purchasing

GeneralLedger

Cash Mgmt

Receivables

Inventory

AssetsPayables

Projects


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

GLJournal Entries

and Balances

Transactions(& adjustments)

Subledger Applications

Accounting Events

Reconciled:Docs, SLA, GL in synch

AccountingConfigurations

Organization Setup

AccountingProgram

SubledgerJournal Entries

SubledgerBalances

Subledger AccountingService

GeneralLedger

DefaultDistributions

Opening Balance Debit Credit

Closing Balance

SUBLEDGER ACCOUNTING

Receivables

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

Payables

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

Opening Balance Debit Credit

Closing Balance

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

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

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

Ticked & Tied

General Ledger

SLA Detail

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

(invoice, payment, etc.)sources

Multiple Accounting RepresentationsGlobal Financial Reporting, Local and “GAAP”

Payables InvoicePayables Invoice

BE RulesBE ChartBE Calendar

EUR

Ledger B

CentralizedAccou

nting

CentralizedAccou

nting

Dr Cr

US GAAPUS GAAPUS COAUS COAUS US CalendarCalendar

EUREUR

Ledger ALedger A

Single business transaction can Single business transaction can create multiple accounting create multiple accounting representations, in multiple representations, in multiple

currenciescurrencies

Single business transaction can Single business transaction can create multiple accounting create multiple accounting representations, in multiple representations, in multiple

currenciescurrencies

http://www.maps-inc.org/eng/classes/images/american-flag.jpg

Invoice Entered in Accounts Payable

Primary Ledger Secondary Ledger

SLA : Multiple Accounting Representations

Multiple Ledgers Efficient Ledger Sets

Ledger Set Benefits:• Cross/Multiple Ledger processing and reporting• Data and definitions that can be shared and secured• Native support for multiple accounting representations

US GAAPUS COAUS Calendar

USD


USD

Ledger CLedger CLedger CLedger C

BE RulesBE RekeningplanBE Calendar

EUR

Ledger BLedger B


EUR

Ledger ALedger A


GBP

Ledger DLedger DLedger DLedger D

Defined by 4 C’s:Defined by 4 C’s:AAcccounting counting CConventiononventionCChart of Accountshart of AccountsCCalendaralendarCCurrencyurrency

Defined by 4 C’s:Defined by 4 C’s:AAcccounting counting CConventiononventionCChart of Accountshart of AccountsCCalendaralendarCCurrencyurrency

Reporting Currency

Share:Share:CChart of hart of AccountsAccounts

CCalendaralendar

Share:Share:CChart of hart of AccountsAccounts

CCalendaralendar

Ledger Ledger SetSet

Ledger Ledger SetSet

Multiple Ledgers Efficient Ledger Sets

Setting Up the Organization11i User Experience

• Define/Assign Set of Books, Specify Conversion options/rules

Multiple steps required to Multiple steps required to assign sets of books and assign sets of books and specify conversion specify conversion options/rulesoptions/rules

Defining a set of books takes Defining a set of books takes 5 tabs to accommodate all 5 tabs to accommodate all fields and rulesfields and rules

Accounting Setup Manager R12 Single Page for Accounting Setup

** Setup which had comprised multiple steps across many forms is now consolidated into one dashboard **

Assign/view legal entities

Define ledger (set of books)

Define operating units

Define legal entities dashboard

Release 12 – Bank Account ChangesCentralized Bank & Bank Account Definitions

Intercompany

TradingCommunity

Global Tax


Banks & Branches

Purchasing

Cash Mgmt

Receivables

Inventory

AssetsPayables

Projects


Other

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

• Single bank account serves multiple Operating Units

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

ProjectsProjectsReceivables

Receivables

PayablesPayablesPurchasing

Purchasing

Projects

Projects

Receivables

Receivables

PayablesPayables

InventoryInventory

PlusCentralized Credit Card Model

Credit Card EncryptionSupplier & Customer Banks in

TCA

Centralized Banking and PaymentsFunds Disbursement and Capture

E-Business SuiteE-Business SuiteE-Business SuiteE-Business Suite

Work in Work in ProcessProcessWork in Work in ProcessProcess

LE

OU A OU B OU C

OU A

OU B

OU CBank

Single Payment

Instruction

Invoices

Payments

Example: Shared Service Disbursement

1.1. Setup accounting policiesSetup accounting policies

2.2. Select invoices from Select invoices from multiple OUsmultiple OUs

3.3. Format for bank and Format for bank and disbursement countriesdisbursement countries

4.4. Send single instruction to Send single instruction to bankbank

5.5. Generate separate Generate separate payments for each OUpayments for each OU

Centralized Centralized AccountingAccountingCentralized Centralized AccountingAccounting

Enhanced Payment Processing

User ExperiencePayables’ Payments Dashboard

CashManagement

ExternalSystems

Formats• BAI2• SWIFT940• EDIFACT• XML

Banks

Reconciliation Open Interface

Bank Statement Open Interface

GeneralLedger

AR

AP

Miscellaneous Transactions

Miscellaneous Transactions

Accounting Entries

Treasury

Payroll

Statements

$$

$$ $$

Secure Treasury Operations & Information With Seamless and Timely Bank Reconciliation

Meet Enterprise Cash Requirements With Flexible Cash Forecasting

Intercompany

TradingCommunity

Global Tax



Other

Purchasing

Cash Mgmt

Receivables

Inventory

AssetsPayables

Projects


Global Tax

Global Tax

• Centralized Rules & Determination

• Improved Reporting

• Effective Dated Setup

• Tax Simulator

Release 12 – Global TaxCentralized Tax Determination & Reporting

39 Copyright © Oracle Corporation, 2006. All rights reserved.

• User determines tax by assigning Tax Codes

• Tax rules in code

•Global descriptive flexfields for country-specific tax attributes

•Granular setup at OU level

Before R12 R12

eBusiness TaxTax determination, not just tax codes…

• eBTax determines tax based on facts about each transaction

• Tax rules you can see

• Tax attributes collected in fields on key entities

• Configure tax rules once per regime and share with your legal entities

• Facilitates compliance

• Improves auditability


Tax Transactions

Taxes,Rules

DetermineRegimes

TaxableBasis

CalculateTax

Amount

Tax Status& Rate

ApplicableTaxes

Single Interface for TransactionsSingle Interface for Transactions

Transparent Integration with Tax Partner ServicesTransparent Integration with Tax Partner Services

PartiesParties

PlacesPlaces

ProductsProducts

ProcessesProcesses

Payables

Receivables

Purchasing

Transactions

Sales Orders

…Tax Reports

- PDF, HTML, RTF- Security enabled

Oracle eBusiness Tax Processing taxes for transactions and reporting


Global TaxRegime to Rate Configuration

RegimeRegime

TaxTax

StatusStatus

RateRate


Global TaxRules & Exceptions


Intercompany

TradingCommunity

Global Tax

Global Tax



Release 12 – Trading Community ArchitectureCentralization Extended

Projects

Other

Purchasing

Cash Mgmt

Receivables

Inventory

AssetsPayables

TradingCommunity

TradingCommunity

• Suppliers

• Banks & Branches

• Tax Geographies

• Improved Consistency

Suppliers in TCALeveraging centralized data model

Trading Community Architecture

Trading Community Architecture

ERPERP CRMCRM 3rd Party3rd Party

PayablePayabless

PayablePayablessPurchasiPurchasi

ngngPurchasiPurchasi

ngng

Global Global TaxTax

PaymentPaymentss

Suppliers

Geographies Party Informati

on

Cash Cash ManagemeManageme

ntntBanks and

Branches

Suppliers in TCA

Release 12 – IntercompanyAdvanced Global Intercompany System

Intercompany

TradingCommunity

TradingCommunity

Global Tax

Global Tax



Other

Purchasing

Cash Mgmt

Receivables

Inventory

AssetsPayables

Projects

IntercompanyIntercompany• Intercompany Account

Definition

• Integration with Payables & Receivables

• Improved Reconciliation

• Inter & Intra – Company Balancing

Manual Manual EntryEntry

Open Open Interfaces / Interfaces /

APIAPI

ExcelExcel(Web ADI)(Web ADI)

Advanced GlobalIntercompany

System

Advanced GlobalIntercompany

SystemSubledgerSubledgerInvoices &Invoices &DocumentsDocuments

Generate subledger invoicesGenerate subledger invoices

Control transaction entry with Control transaction entry with Intercompany CalendarIntercompany Calendar

Fully Configurable Approval Fully Configurable Approval RulesRules

Centrally defined Intercompany Centrally defined Intercompany AccountsAccounts

Transaction-level balancingTransaction-level balancing

Online Online ReconciliatioReconciliation Reportingn Reporting

XML XML Publisher Publisher ReportsReports

Subledger Subledger AccountingAccountingSubledger Subledger AccountingAccounting

DrDr CrCr

General General Ledger Ledger ReceivableReceivable

ssReceivableReceivable

ssPayablePayable

ssPayablePayable

ss

Centralized Intercompany Faster Period-End Close

This is the This is the Receivables Receivables

Balance in Vision Balance in Vision SwedenSweden

This is the This is the Payables Payables

Balance in Balance in Vision NorwayVision Norway

Advanced Global Intercompany System (AGIS)

Totals of the journals posted in Totals of the journals posted in each of the Legal Entities grouped each of the Legal Entities grouped

by source and categoryby source and category

The Payables balance in Vision The Payables balance in Vision Norway is less than the Norway is less than the

Receivables balance in Vision Receivables balance in Vision Sweden indicating Payables Sweden indicating Payables

Invoices have not been posted.Invoices have not been posted.

Details of the Details of the journals in Vision journals in Vision

SwedenSweden

MOAC

Responsibility Responsibility Responsibility

Role-Based AccessMore Productive Shared Services Operations

Italy

Legal Entity

France

Legal Entity

US

Legal Entity

Perform multiple tasks across operating units without changing

responsibilities

ResponsibilityResponsibility ResponsibilityResponsibility ResponsibilityResponsibilitySingle Responsibility

Functional TasksAccounting Billing, Dunning & Collections

ProcurementOrder ManagementPaymentsData Management

Italy

Operating Unit

France

Operating Unit

US

Operating Unit

MOAC in Action

BI Publisher

Templates

BI Publisher

Oracle Applications

CRM

Projects

FMS

HCM

SCM

Output FormatsData Sources

Any XMLData Source

PDFRTF

Business User

PublishingEngine

XML

• Email• Printer• Fax

HTMLXML

Letters

FundTransfers

OnlinePaychecks

OrderConfirmations

BillsGovernmentGrant Forms

Destination

EDIExcel

BI PublisherBusiness Users Format and Deliver Documents

ThinkWork Manage

Out with the “Old”

In with the “New”

BI PublisherHigh Quality Enterprise Reporting

Agenda





• Questions?

63

Change Management

Video

Superior Ownership ExperienceBetter Upgrades

Uptake new features at your pace

Continuity and Choice

Run your business the same way

Minimize manual work

Testing – More customer database upgrades; more dependency analysis and management

Upgrade Process – Fewer pre- and post-upgrade steps

Documentation – More comprehensive functional upgrade impact; improved sizing guidelines; downtime reduction techniques

Business Case for UpgradingUnderstanding the Options

11i

11.5.10

12

Fusion

Increase ProductivityNew User Experience

NewNewFontsFonts

NewNewIconsIcons

NewNewButtonsButtons

New New BackgroundBackgroundPatternPattern

NewNewColorsColors

<Insert Picture Here>

300+ New Features

New in 11i.10…Base Differentiators…• Daily business intelligence

for financials

• Global single instance and shared service center support

• Global language, currency and regulatory support

• Unified data model

• Industry leading performance and scalability

• Unified customer model with data quality management tools

• Integrated collections management

• Online receipt and dispute management

• Online supplier procurement and payment management

• Property and real estate management

New in R12…• Compliance-driven financial

consolidation and reporting

• Enterprise planning and budgeting

• Audit operations, compliance and certification management

• Web services for financials

• XBRL financial reporting

• Enhanced bill presentment: user definable formats and online drill down capabilities

• Enhanced credit, collections, and trade management integration flow

• Self-service asset management

• Enhanced credit card business flow management

• Cash positioning and forecasting

• Project Management

• Ledgers and ledger sets• Centralized rules-based

accounting engine• Single, global tax engine• Centralized payments engine• Common global intercompany

system• Shared services support with

multi-org access• Improved user experience • Centralized data model for

suppliers and banks• Incentive Compensation

enhancements• Improved Collections

Functionality• New Project Management tools• Enhanced Rev Recognition • Enhanced Revenue Matching

Evolution of Oracle FinancialsEvolution of Oracle Financials

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract

Why UpgradeLess Transaction Processing, More Business Support

Globalization“How do I manage complexity of complying with international regulations, tax codes, and financial reporting standards?”

Complexity and Costs“How can I spend less money and time on transaction processing while supporting business growth?”

Regulations and Oversight“How do I get a return on the expense of managing increasing regulatory and oversight demands and risk?”

Profitable Growth“How do I partner with the business to make the right investments in products, people, projects, and processes to drive growth?”

• Standardize processes

• Centralize accounting/tax setup and maintenance

• Consolidate finance systems

• Implement shared services

• Adopt best practices

• Manage compliance with one platform

• Integrate performance management across the business

• Synchronize financial and operational data

Agenda





• Questions?

89

R12 information available online for EBS customers

Oracle.com

• EBS Release 12 page on Oracle.com • The link for R12 Information Page on Oracle.com

• EBS Release 12 User Guides on Oracle.com• The link for R12 User Guides on Oracle.com

• Oracle Business Intelligence Applications • The link for BI Applications on Oracle.com

• Oracle GRC Governance Risk Compliance Applications• The link for GRC Controls Suite Applications

Launch.Oracle.com

http://www.oracle.com/applications/e-business-suite-release.html

http://www.oracle.com/applications/e-business-suite-release.html

http://www.oracle.com/technology/documentation/applications.html

http://www.oracle.com/technology/documentation/applications.html

http://www.oracle.com/appserver/business-intelligence/bi-applications.html

http://www.oracle.com/appserver/business-intelligence/bi-applications.html

http://www.oracle.com/solutions/corporate_governance/enterprise-control-management.html

http://isdportal.oracle.com/isd_html/sf.html

User Productivity Kit (UPK)

Go-LiveProcess Guides

User Acceptance

Test Scripts

Instructor-led Training

Web-based Training

Job Aids

Simulations

Application Coach

Job Aids

Usage Tracking Usage Tracking

UPKDeveloper Single Source Development and Customization

Documentation TrainingPerformance

Support Material

Multi-user Content Management Capabilities

Check In/Check Out Version Control History Rollback

Oracle’s User Productivity Kit is the collaborative content development platform to drive user productivity and mitigate risk throughout all phases of the software ownership lifecycle

R12 information available online for EBS customers

Metalink

• EBS Release 12 Information Center on Metalink:• The link for R12 Information Center

• EBS Release 12 RCD’s (Release Content Documents) (Metalink Note: 404152.1): • The link for RCD’s

• EBS Release 12 Documentation Resources Overview (Metalink Note: 394692.1): • The link for the Documentation Resources

• EBS Release 12 Translation Matrix (Metalink Note: 412218.1): • The link for R12 translation matrix

• R12 EMEA Consulting Localizations for Belgium• R12 EMEA Consulting Localizations - Belgium

https://metalink.oracle.com/metalink/plsql/ml2_documents.showDocument?p_database_id=NOT&p_id=401740.1






https://metalink.oracle.com/metalink/plsql/ml2_documents.showFrameDocument?p_database_id=NOT&p_id=471300.1

Q & A

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