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Update R12 Financials

Brad Holzer Brad.holzer@oracle.com Sales Consultant, Oracle E-Business Suite

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?

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?

EBS R12 available since Jan. 2007

Why Release 12

Path to Finance Transformation

Less Transaction Processing, More Business Support
Globalization
How do I manage complexity of complying with international regulations, tax codes, and financial reporting standards?

Standardize processes Centralize accounting/tax setup

and maintenance

Complexity and Costs

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

Consolidate finance systems

Implement shared services Adopt best practices Manage compliance with one platform

Regulations and Oversight

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

Integrate performance
management across the business

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

Synchronize financial and

operational data

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?

General Ledger
The Center of ERP

Projects

Inventory

Other

Cash Mgmt

General Ledger

Payables

Assets

Purchasing

Receivables

Release 12 Evolutionary New Architecture

Centralizing Key Architectural Components

Projects

Inventory

General Ledger
Other Cash Mgmt

General Ledger

Payables

Assets

Purchasing

Receivables

Centralized Accounting

Release 12 Trading Community Architecture

Centralization Extended

Intercompany
Projects Inventory

Trading Community Global Tax Banks & Accounts Centralized Accounting

Other

Cash Mgmt

Payables

Assets

Purchasing

Receivables

R12 Financial Organization

Ledger 1
Ledger Sets

Ledger 2

Ledger 3

Secondary Ledger

LE1

LE2

LE3

Dr

Cr

Centralized Accounting Engine

Dr

Cr

Bank & Payments

LE & Org Setup

Inter Company

Tax Engine

Inventory Purchasing

Role Based Access

Receivables Projects Payables Payables Purchasing Payables Purchasing Receivables

US Organization 1 Inventory

Inventory US Organization 2

EU Organization 1

Release 12 Evolutionary New Architecture

Centralizing Key Architectural Components

Projects

Inventory

General Ledger
Other Cash Mgmt

Payables

Assets

Purchasing

Receivables

Centralized Accounting

SLA keeps the Subledgers & GL tied out

Keep the auditors happy!

Subledger Applications Accounting Events

Accounting Configurations

Organization Setup

General Ledger

Accounting Program

Subledger Journal Entries GL Journal Entries and Balances

Transactions (& adjustments)

Reconciled: Docs, SLA, GL in synch

Subledger Balances

Default Distributions

Subledger Accounting Service

Ticked & Tied

SLA Controls that GL Balances and SLA Balances tie, and that both tie to the document (invoice, payment, etc.) sources
GENERAL LEDGER Cash Receivables Inventory Assets Prepayments Payables Accruals Shares Previous Results Balance Sheet Sales COGS R&D S&M G&A-Fin G&A-IT G&A-HR Period Income Income Statement
Closing Balance

Opening Balance

Debit

Credit

Closing Balance

100 1,000,000 500,000 100,000 1,000 (750,000) (250,000) (100,000) (501,100) -

3,500,000 3,000,000 1,200,000

2,750,000 3,500,000 1,500,000

2,800,000

2,700,000 50,000

10,500,000 1,500,000 300,000 300,000 300,000 150,000 150,000 300,000 24,000,000

10,500,000 3,000,000

24,000,000

750,100 500,000 200,000 100,000 1,000 (650,000) (300,000) (100,000) (501,100) (3,000,000) 1,500,000 300,000 300,000 300,000 150,000 150,000 300,000 -

Opening Balance SUBLEDGER ACCOUNTING Receivables Customer Customer Customer Customer Customer Total One Two Three Four Five 250,000 350,000 100,000 100,000 200,000 1,000,000

Debit

Credit

150,000 250,000 1,500,000 800,000 300,000 3,000,000

400,000 450,000 1,400,000 750,000 500,000 3,500,000

150,000 200,000 150,000 500,000

General Ledger
SLA Detail

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

Multiple Accounting Representations

Global Financial Reporting, Local and GAAP
Ledger B BE Rules BE Chart BE Calendar

Ledger A
US GAAP US COA US Calendar

EUR

EUR

Dr

Cr

Centralized Accounting

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

Payables Invoice

Invoice Entered in Accounts Payable

SLA : Multiple Accounting Representations

Primary Ledger

Secondary Ledger

Multiple Ledgers
Efficient Ledger Sets
Ledger Set Share: Chart of Accounts Calendar
Ledger C

Ledger B BE Rules BE Rekeningplan BE Calendar

Ledger A US GAAP US COA US Calendar

EUR

EUR

Defined by 4 Cs: Accounting Convention Chart of Accounts Calendar Currency

US GAAP US COA US Calendar

USD

Ledger D US GAAP US COA US Calendar

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

Reporting Currency

Multiple Ledgers
Efficient Ledger Sets

Setting Up the Organization

11i User Experience
Define/Assign Set of Books, Specify Conversion options/rules

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

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

Accounting Setup Manager

R12 Single Page for Accounting Setup

Define legal entities dashboard

Assign/view legal entities

Define ledger (set of books)

Define operating units

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

Release 12 Bank Account Changes

Centralized Bank & Bank Account Definitions

Intercompany
Projects Inventory

Trading Community Global Tax Banks & Branches Accounts Centralized Accounting

Other

Cash Mgmt

Payables

Assets

Purchasing

Receivables

Centralized Banking and Payments

Funds Disbursement and Capture
Bank account is now associated with LE entity rather than Operating Unit
OU C

LE
OU A

OU B

Single bank account serves multiple Operating Units Any and all Operating Units associated with a ledger can be permitted to use the bank account

Inventory

Receivables

Projects

Work in Process

Purchasing

Payables

Assets

E-Business Suite

Plus
Centralized Credit Card Model Credit Card Encryption Supplier & Customer Banks in TCA

Example: Shared Service Disbursement

OU A

OU B
Centralized Accounting

OU C

Single Payment Instruction

Bank

Payments

1. 2. 3.
Invoices

Setup accounting policies Select invoices from multiple OUs Format for bank and disbursement countries Send single instruction to bank Generate separate payments for each OU

4. 5.

Enhanced Payment Processing

User Experience
Payables Payments Dashboard

Secure Treasury Operations & Information

With Seamless and Timely Bank Reconciliation
Bank Statement Open Interface Miscellaneous Transactions

Statements

Payroll

$ AR
Accounting Entries

Formats BAI2 SWIFT940 EDIFACT XML

Banks

$ General Ledger

Cash Management

AP

Treasury

Reconciliation Open Interface

External Systems

Meet Enterprise Cash Requirements

With Flexible Cash Forecasting

Release 12 Global Tax

Centralized Tax Determination & Reporting
Centralized Rules & Determination Improved Reporting Effective Dated Setup Tax Simulator

Intercompany
Projects Inventory

Trading Community Global Tax Banks & Accounts Centralized Accounting

Other

Cash Mgmt

Payables

Assets

Purchasing

Receivables

eBusiness Tax
Tax determination, not just tax codes
Before R12
User determines tax by assigning

R12
eBTax determines tax based on

Tax Codes
Tax rules in code Global descriptive flexfields for

facts about each transaction

Tax rules you can see
Tax attributes collected in fields on

country-specific tax attributes

Granular setup at OU level

key entities
Configure tax rules once per regime

and share with your legal entities

Facilitates compliance Improves auditability

39

Copyright Oracle Corporation, 2006. All rights reserved.

Oracle eBusiness Tax

Processing taxes for transactions and reporting
Transactions

Purchasing Parties
Single Interface for Transactions

Payables

Places Products
Determine Applicable Regimes Taxes

Tax Status & Rate

Taxable Basis

Calculate Tax Amount

Sales Orders

Processes

Transparent Integration with Tax Partner Services

Receivables

40

Tax Reports
- PDF, HTML, RTF - Security enabled

Tax Transactions

Taxes, Rules

Copyright Oracle Corporation, 2006. All rights reserved.

Global Tax
Regime to Rate Configuration

Regime

Tax

Status Rate

42

Copyright Oracle Corporation, 2006. All rights reserved.

Global Tax
Rules & Exceptions

43

Copyright Oracle Corporation, 2006. All rights reserved.

Release 12 Trading Community Architecture

Centralization Extended

Intercompany
Projects Inventory

Suppliers Banks & Branches Tax Geographies Improved Consistency

Trading Community Global Tax Banks & Accounts Centralized Accounting

Other

Cash Mgmt

Payables

Assets

Purchasing

Receivables

Suppliers in TCA
Leveraging centralized data model

Payables Purchasing

Global Tax

Payments

Geographies

Suppliers

Party Information

Cash Management

Banks and Branches

Trading Community Architecture

ERP

CRM

3rd Party

Suppliers in TCA

Release 12 Intercompany
Advanced Global Intercompany System
Intercompany Account Definition Integration with Payables & Receivables Improved Reconciliation Inter & Intra Company Balancing

Intercompany
Projects Inventory

Trading Community Global Tax Banks & Accounts Centralized Accounting

Other

Cash Mgmt

Payables

Assets

Purchasing

Receivables

Centralized Intercompany
Faster Period-End Close
Advanced Global Intercompany System
Manual Entry Open Interfaces / API

Subledger Invoices & Documents

Generate subledger invoices Control transaction entry with Intercompany Calendar Fully Configurable Approval Rules Centrally defined Intercompany Accounts Transaction-level balancing

Online Reconciliatio n Reporting

Excel (Web ADI)

XML Publisher Reports

Dr

Cr

General Ledger

Subledger Accounting

Receivables

Payables

Advanced Global Intercompany System (AGIS)

This is the Receivables Balance in Vision Sweden

This is the Payables Balance in Vision Norway

Totals of the journals posted in each of the Legal Entities grouped by source and category

The Payables balance in Vision Norway is less than the Receivables balance in Vision Sweden indicating Payables Invoices have not been posted.

Details of the journals in Vision Sweden

MOAC

Role-Based Access
More Productive Shared Services Operations

Perform multiple tasks across operating units without changing responsibilities

US
Legal Entity

Italy
Legal Entity

France
Legal Entity

Functional Tasks
Accounting Billing, Dunning & Collections Procurement Order Management Payments Data Management

US
Operating Unit

Italy
Operating Unit

France
Operating Unit

Responsibility

Responsibility SingleResponsibility Responsibility

MOAC in Action

BI Publisher

BI Publisher

Work Think Manage

Business Users Format and Deliver Documents

Data Sources
Oracle Applications
CRM Projects FMS HCM SCM XML

BI Publisher
Publishing Engine

Output Formats
PDF RTF HTML XML EDI Excel

Destination
Email Printer Fax

Templates

Letters Fund Transfers

Order Confirmations Online Paychecks Government Grant Forms

Any XML Data Source

Business User

Bills

Out with the Old

In with the New

BI Publisher
High Quality Enterprise Reporting

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?

63

Change Management Video

Superior Ownership Experience

Better Upgrades
Continuity and Choice
Uptake new features
at your pace

Run your business the Minimize manual work

same way

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 Upgrading

Understanding the Options

11i

12

11.5.10

Fusion

Increase Productivity
New User Experience
New Background Pattern

New Buttons New Colors

New Fonts

New Icons

<Insert Picture Here>

300+ New Features

Evolution of Oracle Financials

Base Differentiators New in 11i.10 New in R12

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

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

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

Why Upgrade
Less Transaction Processing, More Business Support
Globalization
How do I manage complexity of complying with international regulations, tax codes, and financial reporting standards?

Standardize processes Centralize accounting/tax setup

and maintenance

Complexity and Costs

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

Consolidate finance systems

Implement shared services Adopt best practices Manage compliance with one platform

Regulations and Oversight

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

Integrate performance
management across the business

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

Synchronize financial and

operational data

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?

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

User Productivity Kit (UPK)

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

Documentation
Process Guides
User Acceptance Test Scripts

Training
Instructor-led Training
Web-based Training Job Aids Usage Tracking

Performance Support Material

Simulations

Go-Live

Application Coach Job Aids Usage Tracking

Multi-user Content Management Capabilities

UPK Single Source Development and Customization Developer

Check In/Check Out
Version Control History Rollback

R12 information available online for EBS customers

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

EBS Release 12 RCDs (Release Content Documents) (Metalink Note: 404152.1):

The link for RCDs

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

Q&A

Q U E S T I O N S A N S W E R S

&