CONFIGURATION CONTROLS GOVERNOR for

EBS R12 Upgrades

May 2009
Oracle GRC Strategy Barry Greenhut

Costs and Risks

Some EBS 11i setups change during the upgrade to

R12; others are introduced in R12

Unnoticed and unwanted setup values can cause:
Financial Loss
Compliance Cost
Audit Effort

Key questions to ask:

Which setups change when we upgrade? Which are new?
If unnoticed or unwanted setup values are used, what costs
arise?
How can we reduce those costs?

Which setups change when we upgrade?

Which are new?
R12 introduces important changes to the accounting

model:

Ledgers and Ledger Sets replace Sets of Books

Subledger Accounting replaces Global Accounting Engine
Taxes handled differently, by a new module: eBusiness Tax
Closer relationship between tax setups and organization
setups in another new module: Legal Entity Configurator

Which setups change when we upgrade?

Which are new?
Some modules setups have undergone substantial

change:

General Ledger
System Administration
Purchasing / iProcurement

Most other modules setups have seen at least minor

additions, including:

Alerts
Application Object Library
Common Modules
Payables
Receivables / iReceivables

What costs/risks do we face?

Financial Loss

EXAMPLE: eBusiness Tax configuration leads to substantial

undercollection of taxes that goes undetected for months.
Consequences: Pay taxes due on behalf of customers, plus
penalties.
Compliance Remediation Cost

EXAMPLE: Ledger Set configuration incorrectly allocates revenues

amongst divisions.
Consequences: Restate and refile quarterly results.
Audit Remediation Cost

EXAMPLE: Dozens of payment term mis-configurations are

identified during external audit.
Consequences: Internal audit team performs substantial research to
provide proof of no ill effect.

How can we reduce those costs/risks?

Catch unexpected setup changes before you go live:
1. Compare Snapshots of your 11i production setups and
R12 test setups see whats changed in your R12 setups
2. Carefully review Snapshots of new R12 setups
3. Adjust your R12 setups as needed before going live

How can we reduce those costs/risks?

Continue reducing costs/risks after the

upgrade is complete
Use CCG to track changes to key setups
EXAMPLE: NYSE-traded energy sector corporation applied a
production patch that reset vendor tolerances, and didnt
notice the change for nine months.
Consequences: Internal audit team performed extensive work
to prove there were no abuses, and external auditors
performed substantial transaction examination.
Use PCG to restrict changes to the riskiest setups
EXAMPLE: Clerk at NYSE-traded food sector corporation
changed bank account info without cross-check; $10MM
transferred before fraud was discovered.
Consequences: Money frozen pending investigation; public
confidence shaken due to notoriety.
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Rapid CCG implementation with shrink-wrap

support for
EBS R12

EBS 11i

PSFT HCM 8.8

550+ setups

3,000+ setups

400+ setups

BASE ENGINE
Alerts
Application Object Library
Common Modules
System Administration

BASE ENGINE

BASE ENGINE

CONTRACTS

HCM
Benefits
Compensation
HR
Payroll
Pension
Recruiting
Stock Administration
Workflow

FINANCIALS
General Ledger
Subledger Accounting
Payables
eBusiness Tax
Legal Entity Configurator
Receivables / iReceivables
PROCUREMENT
iProcurement
Purchasing

CRM
DISTRIBUTION
FINANCIALS
HR/PAYROLL
MANUFACTURING
PLANNING
PROCUREMENT
PROJECTS
PUBLIC SECTOR

Alternatives to CCG
Only CCG makes it easy compare 11i setups to R12

setups; no other product available today can do this

Only CCG is quick to implement, thanks to its shrinkwrap support; no other product offers this today

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Summary
When upgrading from EBS 11i to R12, unwanted

setup changes can cause:

Financial Loss
Compliance Cost
Audit Effort

During the upgrade, avoid costs by using CCG to

identify setup changes

After the upgrade, use CCG to track changes to key
setups, and PCG to restrict changes to the riskiest
setups

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