<Insert Picture Here>
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
• Why Release 12 ?
• What do I need to know about Release 12?
• Why should customers upgrade?
• Where do I go to learn more?
• 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
• Why Release 12 ?
• What do I need to know about Release 12?
• Why should customers upgrade?
• Where do I go to learn more?
• 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
Centralized AccountingCentralized Accounting
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
Centralized AccountingCentralized Accounting
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
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
US GAAPUS COAUS Calendar
USD
Ledger CLedger CLedger CLedger C
BE RulesBE RekeningplanBE Calendar
EUR
Ledger BLedger B
US GAAPUS COAUS Calendar
EUR
Ledger ALedger A
US GAAPUS COAUS Calendar
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
Centralized AccountingCentralized Accounting
Banks & Branches
Purchasing
Cash Mgmt
Receivables
Inventory
AssetsPayables
Projects
Banks & AccountsBanks & Accounts
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
Centralized Accounting
Banks & AccountsBanks & Accounts
Other
Purchasing
Cash Mgmt
Receivables
Inventory
AssetsPayables
Projects
Centralized AccountingCentralized Accounting
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
40 Copyright © Oracle Corporation, 2006. All rights reserved.
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
42 Copyright © Oracle Corporation, 2006. All rights reserved.
Global TaxRegime to Rate Configuration
RegimeRegime
TaxTax
StatusStatus
RateRate
43 Copyright © Oracle Corporation, 2006. All rights reserved.
Global TaxRules & Exceptions
Centralized Accounting
Intercompany
TradingCommunity
Global Tax
Global Tax
Centralized AccountingCentralized Accounting
Banks & AccountsBanks & Accounts
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
Centralized AccountingCentralized Accounting
Banks & AccountsBanks & Accounts
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
• 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 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
• 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)
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
Q & A
&Q U E S T I O N S
A N S W E R S
Top Related