E-Business Suite

Whats New in Release 12

Connie Barbon, Oracle Senior Sales Consultant

Agenda Whats New in R12

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Overview Financials
6 Major Initiatives Other cool stuff Not really R12

Q&A

Additional content on Projects and Human Capital Management included in slide deck

New User Experience

A New User Experience for R12

Accelerate global roll-outs with simplified user interface and business flows

Reduced pop-ups and

duplicate screens

Re-designed and streamlined

entire workflows

Reduced the number of steps

to complete key tasks

Improved overall look & feel

and visual style

Increased personalization
capabilities
Improved Workflow in Targeted Areas

Campaign Management Customer Support Collections & Payments Loan Management

Financial Consolidation Online Candidate Registration Absence Management Salary Administration

Self-Service Purchasing Sourcing Supplier Collaboration Business Intelligence

New User Experience

New Background Pattern

New Buttons New Colors

New Fonts

New Icons

11i User Experience - example

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

Superior Ownership Experience

R12 - Single Page for Accounting Setup
Legal Entities Ledgers Currencies Balancing Segments

Subledger Accounting
Operating Units Balancing Options

Oracle Financials Whats New in Release 12

Whats New in R12 Financials

6 Major Initiatives
1. Ledger and Ledger Sets 2. Subledger Accounting 3. MOAC 4. Intercompany 5. Tax Engine 6. Bank Model
Multi-Org Access Control
Dr Cr

General Ledger Ledger & Ledger Sets

Subledger Accounting (SLA)

Tax Engine

Inter Company

Bank Model

Inventory

Receivables Payables

Projects

Work in Process

Purchasing

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Ledgers and Ledger Sets

Ledgers in Oracle
A set of accounting information for a legal or business entity Each ledger is associated with a Chart of accounts, Calendar, Currency, and Subledger Accounting Convention for which accounting information is recorded

11i & Prior = Sets of Books 3 Cs: Currency, Calendar, Chart

Seeded Conventions: Standard Accrual Standard Cash Accrual w/ Encumbrance Cash w/ Encumbrance US Federal Accounting China Standard Accrual

R12 = Ledgers 4 Cs: Currency, Calendar, Chart, Convention

Multiple Accounting Representations

Parallel Financial Reporting with Ledgers
Ledger A French Rules French COA French Calendar Ledger B US GAAP US COA US Calendar

EUR

EUR

Dr

Cr

Subledger Accounting

Single subledger transaction can create multiple accounting representations and in multiple currencies

Payables Invoice

Multiple Ledgers
Primary Ledger
the main Activity Ledger Usually in the local currency For Operational reporting

Secondary Ledger (ex. France requires Statutory Chart)

Differs from Primary Ledger by Chart, Calendar, and/or Convention For Statutory, Tax or Consolidated reporting

Reporting Currency Ledger

Differs from Primary Ledger by Currency ONLY Just a translation of the Primary Ledger no rules required For Consolidated reporting

Ledger Sets
Global Information At A Glance Share:
Ledger Set
Ledger C

Chart of Accounts Calendar

Ledger A French Rules French COA French Calendar

Ledger B US GAAP US COA US Calendar

US GAAP US COA US Calendar

USD

EUR

EUR

Ledger D US GAAP US COA US Calendar

Key benefits to many Ledgers in one set

Decision-driving business information always available Simpler processing and General Ledger management Data and definitions that can be shared and secured

AUD

Reporting Currency

LEDGER SETS Grouping of ledgers with the same chart of accounts and calendar/period type combination
Essentially treats multiple ledgers as one

Perform the Following Across Ledgers

Using Ledger Sets
Open/Close Periods Create Journals
Allocations Across Ledgers Recurring Journals for All Ledgers Elimination Sets for All Ledgers

Translate and Revalue Balances View Information without Changing Responsibilities View Journals and Account Balances Across Ledgers Submit Standard Reports Create Financial Statements that Include Data for Multiple Ledgers

Impacted Applications
Ledger Sets
Ledger Sets used by General Ledger Some AR and AP reports use Ledger Sets

Impact/Upgrade Considerations
Ledger Sets
None; All sets of books upgraded to ledgers Only need to define ledger sets to obtain processing efficiencies

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Subledger Accounting

Subledger Accounting
Centralized Rules, Common Repository: Global Control
Internal control and compliance with multiple accounting policies through user-defined accounting rules
3rd Party Systems
Dr
Cr

General Ledger General Ledger

SLA = Centralized Accounting Model, Rules, Engine and Repository

Single source of truth for all subsystem accounting activity with a common data model and repository Accounting, reconciliation and reporting facilitated by centralized data model

Inventory
3rd Party Systems Work in Process

Receivables

Projects

Streamline closing process with common posting engine Auditable and transparent entries accessible with full drilldown

Purchasing

Payables

Introduction to Subledger Accounting

DUAL POSTING SIMULTANEOUSLY

Ledger: FR Statutory GL Date: 2-Mar-2006 Invoice Internal Identifier: 1001 Invoice Internal Identifier: 1001

Invoice #100 ABC Networks

2 Monitors Marketing $1000 5 Printers Marketing $ 500 Freight Tax Total $ 100 $ 110 $1710

Invoice# 100 Ledger: US Corporate Supplier: ABC Networks GL Date: 2-Mar-2006 Invoice# 100 Supplier: ABC Networks

DR

CR Invoice Line 1 Invoice Line 2 Invoice Line 3 Invoice Line 4

1 Expense 01-EXP-200 2 Freight 01-FR-200 3 Tax 01-TX-200

$1500 $100 $110

4 Liability 01-LIAB-200

$1710

Transactions vs. Accounting

SLA provides a distinction between a transaction and the accounting representation of the transaction (there can be multiple representations of one transaction) Accounting distributions did not necessarily go away
Needed for upgrade customers Needed as starting point for SLA (Dont want to force customers to define their own SLA rules) In some cases, necessary to allow user input

Most default SLA rules just pass through the distribution accounts (where applicable)

Streamline Accounting

Impacted Applications
General Ledger Payables Receivables Projects Assets Costing OPM Public Sector/Federal

Payroll Property Manager Loans Lease Management (Post R12) Cash Management Globalizations Intercompany

Subledger Journal Entry more info

Subledger Entry vs. GL Journal Entries

Many to One
SLA JE #1 Controlled FenderJE 3rd Party: by GL Summarization setting for 101.100.63580.0000.720.000.000 6,000 each Subledger App EUR 101.100.22100.0000.000.000.000 6,000 AR, etc): (AP, EUR Summarize by GL Date, Invoice No: 131299 GL Date: 01/27/07 byrd Party: Gibson 3 GL Period, or No Summarization 101.100.63580.0000.720.000.000 3,000 EUR 101.100.22100.0000.000.000.000 3,000 EUR Invoice No: 136274 GL Date: 01/27/07 Invoice No: 116555 GL Date: 01/27/07 3rd Party: Kramer

SLA JE #2

SLA JE #3

101.100.63580.0000.720.000.000 101.100.22100.0000.000.000.000 Batch: AP Invoices 27-Jan-07

2,000 EUR 2,000 EUR

GL JE #1

GL Period: Jan-07

101.100.63580.0000.720.000.000 101.100.22100.0000.000.000.000

11,000 EUR 11,000 EUR

Upgrade Considerations
By default, the R12 upgrade migrates at least 6 periods of accounting entries from each application to the SLA data model.
You can modify this if desired.

For prior periods, the historical data is preserved. You can drill from General Ledger to the historical transactions using standard GL drilldown

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Multi-Org Access Control (MOAC)

MOAC: Multi-Org Access Control

Role based access to Operating Units
Perform multiple tasks across operating units without changing responsibilities
Belgium
Legal Entity

Holland
Legal Entity

Denmark
Legal Entity

Functional Tasks
Order Management Dunning, Collections, Billing Requisition, Demand & Purchase Orders Receiving & Drop Ship Invoice Receipt, Disbursement Customer Data Management Accounting Setup

Belgium
Operating Unit

Holland
Operating Unit

Denmark
Operating Unit

Responsibility SingleResponsibility Responsibility

Responsibility

Multi-Org Access Control Setup

Define Security Profile

Specify Operating Units

Classify Organization as operating unit

MOAC
Typical Screen in daily use

Select Operating Unit during Input

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Advanced Global Intercompany System (AGIS)

Advanced Global Intercompany System

Address the Top Barrier to a Fast Close
Advanced Global Intercompany System

Web UI

Subledger Invoices & Documents

Open Interfaces / API Generate subledger invoices Excel (Web ADI) Control transaction entry with Intercompany Calendar Fully Configurable Approval Rules Flexible Security Model Centrally defined Intercompany Accounts XML Publisher Reports Online Reconciliation Reporting

Dr

Cr

General Ledger

Subledger Accounting

Receivables

Payables

Intercompany Journal Across Ledgers

Intercompany Due To / Due From lines automatically generated

AR Invoice billed to SSC France from SSC US (NY)

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Tax Engine

E-Business Tax
Centrally manage tax transactions across entire E-Business Suite

Single Repository of
Internet Expenses
Purchasing

transactions for global business insight

Internet Procurement

Centralized rules applied

to transactions to manage globally and reduce risk Automation of tax processes on transactions to improve operational efficiency Improved Reporting Effective Date Setup Extensible architecture that supports additions, e.g. Self-assessed Use Tax

General Ledger

Tax Transactions
Tax Setup/Rules Payables

Receivables
Order Management

Inter-Company Invoicing

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

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Bank Model

Centralized Banking
Shared Services Disbursements
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 For Internal Banks and Customer & Supplier Banks

Inventory

Receivables

Projects

Enhanced Reconciliation
PLUS: Centralized Credit Card Model Supplier & Customer Banks in TCA

Work in Process

Purchasing

Payables

Assets

Bank Model: Example of what you can do

Pay invoices from different OUs with 1 instruction
OU A

New Payments Module New Bank Module New Bank & Credit Card Features

OU B

OU C

Single Payment Instruction

Bank

Payments

Sub Ledger Accounting

Invoices

Banks
Define Owner of Bank Account

Specify Legal Entity Owner

Where is Account used?

Select Multiple LEs, OUs, Currencies in single Payment Run

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Miscellaneous Cool Stuff

Report Repository

Online file cabinet to where Financial Reports are published

Add Report to Menu

Control Accounts

Control Account Prevents posting other than automatically from Subledgers

Replacement Accounts

Replacement Account will be posted to in place of Disabled Account

Payments Dashboard

Submit or Schedule Payment Process Request

Use Payment Template to Default values

Pay Multiple Legal Entities, Operating Units, and Currencies in one Payment Run

Can do STP (Straight Thru Processing) or Review/Edit selected Invoices

Pending Actions walks you through process

Positive Pay Program

Internet Expenses - Allocations

Edit Coding of Expense Lines

Allocate Expense Lines * even to Projects

Internet Expenses Bar Coding

Bar Coding of Expense Reports

Robust Cash Forecasting

Cash Forecasting is a planning Tool that helps you anticipate the flow of Cash in & out of your business, allowing you to project your cash needs.

Specify Sources

Drill down to transaction details Include/Exclude lines

Flexible Cash Positioning

Cash Positioning is a planning tool that allows you to view your daily cash position by Bank Acct, Cash Pool, or Currency.

Automatically generate cash transfers

Drill down to details View by currency, bank account or cash pool

Save Projected Balances for Reporting

Online refresh capabilities

Cash Leveling Proposal initiates Bank Transfer

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Not Really R12

But still cool

Simplified Self-Service Reporting

BI (XML) Publisher
Reporting Evolution
Replaces most standard reports with data extracts and templates Merges custom templates and data extracts at run-time Delivers output in PDF, HTML, RTF, Excel (HTML), or text for use with EFT and EDI transmissions

Benefits

Put reporting in the hands of

the business user Create report formats using desktop tools (Adobe Acrobat, MS Word, MS Excel, and XSL Editors) Publish in any format, to the web and electronically Drive reporting consistency with one source of data

Oracles new XML Publisher is visionary and empowers end users. This new capability gives customers the look and feel of Excel with a desktop publishing look to reports, and enables users to create their own reports, minimizing the dependency on the IT staff.
-- Sean Malinski, Accenture Partner, Global Business Solutions - Oracle Practice

Old Standard Reports

New Standard Reports (HTML)

Oracle BI Publisher

Many, many, many Standard Reports Multiple formats per report Merge Data with Contract Terms User-defined templates Boardroom Quality Output

Oracle Business Intelligence

Comprehensive View of Financial Performance
General Ledger & Profitability Analytics
Incorporates detail-level general ledger transactions and cash flow analysis across locations, customers, products, sales territories, distribution channels, and business units. Identifies the customers and transactions that are providing maximum profits by product, location, department, and geographic detail. When combined with Marketing Analytics, it enables analysis of Campaign ROI and assists in customer segmentation.

Payables Analytics
Provides visibility into payments due to suppliers and expense line detail so managers can manage cash outflows and control expenses. When combined with Supply Chain Analytics, it allows full procurement analysis from Requisition to Check.

Receivables Analytics
Monitors collections processes to show what customers buy and how they pay, enabling managers to identify overdue balances and other receivables bottlenecks. When combined with Oracle Sales Analytics and Oracle Order Management & Fulfillment Analytics, it enables more efficient management of the entire Lead to Cash process.

Oracle Business Intelligence

User Productivity Kit (UPK)

What is UPK
a comprehensive, cost-effective solution that helps your organization quickly create critical documentation, training, and support materials needed to drive project team and increase user productivity throughout the lifecycle of your software.

You Perform a transaction, Record it, and Publish it

Training Guides Web-based Training Job Aids Test Scripts

WORKS WITH 11.5.9 and above

UPK Playback Modes

See It! Enables you to learn by watching an animated demonstration of tasks being performed in a simulated environment. Try It! Enables you to learn interactively in a simulated environment. The Player provides you with instructions as to what needs to be done to complete a task, but you perform the actual steps. Know It? Enables you to test knowledge gained from training. You are instructed to complete the steps for a particular task and are scored on how accurately you complete the steps.

Do It! Guides you in the performance of the actual task in a production environment. You learn by completing the actual task.

New in Financial Control & Reporting

Highly automated financials processing drives efficiencies
Centralized accounting setup Streamlined multiple ledger processing and reporting Parallel financial reporting Automatic reporting currency conversion Replacement for disabled accounts

EFFICIENCY

Data security across legal entities, ledgers or balancing segment values Control Accounts

FLEXIBILITY

Accounting and reporting sequencing Journal line reconciliation

AUDITABILITY

New in Procure-to-Pay
Integrated Suite Optimizes Working Capital
Document line level entry and approval Non-PO invoice accounting entry by approvers Invoice dispute management Real-time status of purchasing contract T&Cs and

PRODUCTIVITY

invoicing activity in Oracle Payables and Purchasing

Self-service opportunities via iSupplier Portal to a

broader set of their suppliers Self service entry extended to receipt matched, complex Work Purchase Orders, and non-PO invoices

COST SAVINGS

Streamlined supplier setup and maintenance as part of

Trading Community Architecture (TCA) Access to TCA features

INTEGRATION

New in Credit-to-Cash
Accelerate cash cycle and manage revenue with fiscal discipline

Daily revenue recognition Deferral reason for goods and services COGS and revenue matching Line level cash application

COMPLIANCE

More efficient payment application with Oracle Payments

integration More targeted and efficient collections with configurable matrix Credit recommendation enhancements Conversion of delinquent receivables to payment plans
Visibility to carry-forward balances with cycle-based

BETTER CASH FLOW

billing Payment application according to customer preferences

INDUSTRY SUPPORT

New in Cash and Treasury

Optimize Cash and Treasury Operations
Centralized and consolidated bank model Single bank account shared by multiple organizations Bank account transfers directly in Cash Management Funds optimization with cash pooling and zero balancing Configurable and centralized payments engine Full audit trail and control with single point of payment

EFFICIENCY

administration Straight through processing (STP) for payments Real-time visibility into cash inflows and outflows Large library of payment formats and validations
Simplified reconciliation of bank statements to cash

COMPLEXITY

transactions in multiple organizations Support for new bank account balance types in bank statement import Bank account-level reconciliation options and tolerances

FLEXIBILITY

New in Asset Management

Maximize return on assets
Automate legacy asset conversion with enhanced

preparation of Mass Additions

EFFICIENCY

Perform rollback on select assets with Automatic

Depreciation Rollback

PERFORMANCE

Group Assets to include Units of Production method Energy straight-line depreciation method Asset impairment of a producing asset

INDUSTRY SUPPORT

New in Travel & Expense

Lower the total cost of travel and expense

CONUS and OCONUS global per diem rates Per diem and policy schedules

LOWER COSTS

Expense splitting across multiple accounting segments Enhanced cost center and projects approvals

ACCURACY

Self-service cash advance application during entry

Bar code generation

Streamlined receipts management with receipts tracking

PRODUCTIVITY

and receipts missing capabilities

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Why Upgrade ?

Why Upgrade
Straight Talk from Customers
We have 60 sets of books and see tremendous efficiencies with running processes across these sets of books using Ledger Sets.

Ability to issue one payment instruction to the bank for payments of invoices in multiple operating units was viewed as a huge benefit from the user community. Multi-Org Access Control (MOAC) will definitely reduce the workload and the number of people performing process related tasks. The users are very excited and the benefits of MOAC were readily visible to them.
The ability to access multiple operating units with a single responsibility can simplify SOX compliance monitoring. The functionality offered with Advanced Global Intercompany System (AGIS), specifically the creation of physical invoices to be created for I/C transactions in Payables and Receivables eliminates many customizations in this area. Centralization of subledger accounting rules would minimize set up and maintenance, providing greater financial control, and enforcing a consistent approach for true global accounting. Banks, taxes, payments, and accounting everything that becomes centralized will bring tremendous efficiencies to our organization.

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 Supplier open interface

Ledgers and ledger sets Centralized rules-based

accounting engine Single, global tax engine Unified bank account model Centralized payments engine Common global intercompany system Shared services support with multi-org access Improved user experience Centralized data model for suppliers and banks Accounting & consolidation engine for Financial Services Multi-dimensional profitability analysis Fusion Middleware certification Enhanced integration repository Retek integration

Q&A