Release 12 Financial Applications: Elease Ontent Ocument

RELEASE CONTENT DOCUMENT
Release 12
Financial Applications
Prepared by Financials Product Management Team
Last Updated: 11 December 2006

Version: 30
Copyright © 2006 Oracle Corporation

All Rights Reserved
Table of Contents
1. Disclaimer 1
2. Introduction 2
2.1. Purpose of Document 2
3. Release 12.0 Objectives 3
4. Oracle Financials Applications – Architectural and Closely-related Enhancements 6
4.1. Multi-Org Access 6
4.1.1. Overview 6
4.1.2. Features 6
4.1.2.1. Multi-Org Access Control 6
4.1.2.2. Multi-Org Security Profile Preferences 6
4.1.2.3. Enhanced Multi-Org Reporting 7
4.1.2.4. Multi-Org Integration with Accounting Setup Manager 7
4.2. Oracle Cash Management 8
4.2.1. Overview 8
4.2.2. Features 8
4.2.2.1. Bank Account Model 8
4.2.2.3. Subledger Accounting 8
4.2.2.4. Bank Account Balances and Interest Calculation 9
4.2.2.5. Bank Account Transfers 9
4.2.2.6. Cash Pooling 9
4.2.2.7. Bank Statement Accounting 10
4.2.2.8. Bank Account Signing Authorities 11
4.2.2.9. Cash Positioning Intra-day Activities 11
4.3. Oracle General Ledger 12
4.3.1. Overview 12
4.3.2. Features 12
4.3.2.1. Accounting Setup 12
4.3.2.2. Improved Processing Efficiency 13
4.3.2.3. Data Security 14
4.3.2.4. Auditability 15
4.3.2.5. Others 16
4.3.3. Terminology 17
4.4. Oracle Subledger Accounting – New Product 19
4.4.1. Overview 19
4.4.2. Features 19
4.4.2.1. Journal Entry Setups 19
4.4.2.2. Date Effective Application Accounting Definitions 20
4.4.2.3. Multiple Accounting Representations 20
4.4.2.4. Summarization Options 21
4.4.2.5. Draft Accounting 21
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4.4.2.6. Online Accounting 21
4.4.2.7. Replacement for Disabled Accounts 21
4.4.2.8. Process Category Accounting 21
4.4.2.9. Straight Through Accounting Processing 21
4.4.2.10. On-line inquiries 22
4.4.2.11. Journal Entry Sequencing 22
4.4.2.12. Third Party Merge Accounting 23
4.4.2.13. Manual Journal Entries 23
4.4.2.14. Third Party Control Accounts 23
4.4.2.15. Transaction Account Builder 23
4.4.2.16. Multi-period Accounting 23
4.4.2.17. Accrual Reversal Accounting 24
4.4.2.18. Business Flows 24
4.4.2.19. Accounted and Gain/Loss Amount Calculations 24
4.4.2.20. Application Accounting Definitions Loader 24
4.4.2.21. Errors Accounting and Reporting 24
4.4.2.22. Standard Reports 25
4.4.2.23. Enhanced Reporting Currency Functionality 25
4.4.2.24. Diagnostics Framework 25
4.4.3. Oracle Subledger Accounting Enhances the Functionality of the Global Accounting Engine 26
4.5. Oracle Legal Entity Configurator 29
4.5.1. Overview 29
4.5.2. Features 29
4.5.2.1. Oracle Legal Entity Configurator 29
4.5.2.2. Legal Authorities and Jurisdiction 30
4.5.2.3. Legal Date Tracking and Auditing 30
4.6. Oracle Advanced Global Intercompany System 32
4.6.1. Overview 32
4.6.2. Features 32
4.6.2.1. Intercompany Balancing 32
4.6.2.2. Intercompany Invoicing 32
4.6.2.3. Intercompany Reconciliation 33
4.6.2.4. Manual Intercompany Transactions 33
4.7. Oracle E-Business Tax – New Product 34
4.7.1. Overview 34
4.7.2. Features 34
4.7.2.1. Configuration Options and Provider Service Subscriptions 34
4.7.2.2. Events and Configuration Owner Options 35
4.7.2.3. Tax Configuration Manager 35
4.7.2.4. Tax Determination Services 35
4.7.2.5. Centralized Tax Record Repository for Audit and Reporting 36
4.7.2.6. Tax Reporting 36
4.7.2.7. Tax Simulator 36
4.7.2.8. Guided Configuration 37
4.7.2.9. Additional Enhancements 37
5. Oracle Financial Applications - Features and Enhancements 40
5.1. Oracle Advanced Collections 40
5.1.1. Overview 40
5.1.2. Features 40
5.1.2.2. Uptake of Cross-Operating Unit Initiative 40
5.1.2.3. Consolidation of Collections Functionality into Advanced Collections 40
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5.1.2.4. New Implementation Checklist and Setup Screens 41
5.1.2.5. Improved Payment Processing and Customer Funds Capture 41
5.1.2.6. Use of Oracle Territory Management to Define Collections Territory Hierarchy 41
5.1.2.7. AR ‘Collector’ Field and Extension to Territory Management 41
5.1.2.8. XML Publishing Technology for Collections Correspondence 42
5.1.2.9. Configurable Metrics 42
5.1.2.10. Aging-based Dunning Plans 42
5.1.2.11. Collections Best Practices 43
5.1.2.12. Filterable Bali Tables 43
5.1.2.13. Consolidated Collections with Lease Contracts or Loans 44
5.1.2.14. Search Tool Enhancements 44
5.1.2.15. Enhanced Scoring Capability 44
5.1.2.16. Automatic Strategy Changing 44
5.2. Oracle Assets 46
5.2.1. Overview 46
5.2.2. Features 46
5.2.2.2. Enhanced Mass Additions Interface for Legacy Conversions 46
5.2.2.3. Automatic Preparation of Mass Additions 46
5.2.2.4. Enhanced functionality for Energy Industry 47
5.2.2.5. Flexible Reporting using XML Publisher 47
5.2.2.6. Automatic Depreciation Rollback 47
5.2.2.7. Enhanced Logging for Asset Transactions and Programs 48
5.3. Oracle Bill Presentment Architecture 49
5.3.1. Overview 49
5.3.2. Features 49
5.3.2.1. Balance Forward Bill Presentment 49
5.3.2.2. Enhanced Template Assignment 49
5.3.2.3. Attachment Printing 49
5.3.2.4. Legal Entity 49
5.4. Oracle Credit Management 51
5.4.1. Overview 51
5.4.2. Features 51
5.4.2.1. Common Components for Leasing and Loan Applications 51
5.4.2.2. Enhancements to User-Defined Data in Credit Case Folders 51
5.4.2.3. Multi-Period Financial Data Comparison 51
5.4.2.4. Credit Scoring Model Enhancements 52
5.4.2.5. Credit Recommendation Enhancements 52
5.4.2.6. Credit Decision Appeals Processing 52
5.4.2.7. Dynamic Credit Analyst Assignments 52
5.4.2.8. Automatic Assessments of Guarantors 52
5.5. Oracle Enterprise Performance Foundation 54
5.5.1. Overview 54
5.5.2. Features 54
5.5.2.1. Oracle Release 12.0 Schema 54
5.5.2.2. Enhanced Oracle General Ledger Integration 54
5.5.2.3. Shared, Reformatted Ledger Data 54
5.5.2.4. Oracle Workflow Integration 55
5.5.2.5. Integration with Concurrent Manager 55
5.5.2.6. Oracle Warehouse Builder Integration with Interface Tables 55
5.5.2.7. Oracle Warehouse Builder Replaces Balance & Control 55
5.5.2.8. New User Interfaces 55
5.5.2.9. Security and System Administration 56
5.5.2.10. User Defined Signage Methodologies 57
5.5.2.11. Configurable Home Page 57
5.5.2.12. Tuning Options Administration User Interface 57
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5.5.2.13. Rule Migration, Import and Export 57
5.5.2.14. Multi-Dimensional Data Model 57
5.5.2.15. Dimension Member Attributes 58
5.5.2.16. Data Set Registration and Creation 58
5.5.2.17. Dataset Groups 59
5.5.2.18. Business Rule Definition and Management 59
5.5.2.19. Conditions 61
5.5.2.20. Data Inspector 61
5.5.2.21. Auditing and Data Integrity 61
5.5.2.22. Production Datasets 62
5.5.2.23. Process Locking 62
5.5.2.24. Rule Auditing 62
5.5.2.25. Effective Dating & Versioning 62
5.5.2.26. Seeded Reports 63
5.5.2.27. Integration with Web ADI 63
5.5.2.28. Functional Dimension Definition 63
5.5.2.29. Loader Rules 63
5.5.2.30. Client Data Table Loader Replacement Mode 63
5.5.2.31. Fact Table Dimension Member Error Report 63
5.6. Oracle Enterprise Planning and Budgeting 68
5.6.1. Overview 68
5.6.2. Features 68
5.6.2.1. Usability Enhancements 68
5.6.2.2. Scalability Enhancements 68
5.7. Oracle Financial Consolidation Hub – New Product 70
5.7.1. Overview 70
5.7.2. Features 70
5.7.2.1. Enterprise View 70
5.7.2.2. Unity of Statutory and Management Results 70
5.7.2.3. Consolidation Versatility 70
5.7.2.4. Entire Consolidation Cycle Monitored 71
5.7.2.5. Automated Workflow and Exception Handling 71
5.7.2.6. Dynamic Ownership Structures 71
5.7.2.7. Analytical Reporting Capabilities 71
5.7.2.8. Audit Entries from Every Stage of Consolidation 71
5.7.2.9. Accessibility of Complete Consolidation History 71
5.7.2.10. Best Practices Automated 71
5.7.2.11. Complex Calculations and Eliminations Handled 72
5.7.2.12. Global Consolidation Requirements Managed 72
5.7.2.13. Internal Controls Manager Integration 72
5.7.2.14. Excel Add-in and Oracle General Ledger Drilldown 72
5.7.2.15. Concurrent Programs for Reporting 73
5.7.2.16. Line Item Intercompany Maps 73
5.8. Oracle Financials for Asia Pacific 74
5.8.1. Overview 74
5.8.2. Features 74
5.8.2.1. Korean Withholding Tax 74
5.8.2.2. Taiwan Transaction Numbering 74
5.8.2.3. Asia Pacific Reports 74
5.8.2.5. Legal Entity Architecture 74
5.9. Oracle Financials for EMEA 76
5.9.1. Overview 76
5.9.2. Features 76
5.9.2.1. EMEA VAT Reporting 76
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5.9.2.2. EMEA Country Specific Reports 76
5.10. Oracle Financials for India 77
5.10.1. Overview 77
5.10.2. Features 77
5.10.2.1. CENVAT Rules 2004 Changes 77
5.10.2.2. Tax Deducted at Source (TDS) Thresholds 78
5.10.2.3. Value Added Tax (VAT) 78
5.10.2.4. DFF Elimination 79
5.10.2.6. AP Invoice Lines 79
5.10.2.8. OPM Inventory Convergence 80
5.11. Oracle Financials for Latin America 81
5.11.1. Overview 81
5.11.2. Features 81
5.11.2.1. General Ledger Inflation Adjustments 81
5.11.2.2. Receivables Latin Tax Engine 81
5.11.2.3. Latin America Extended Withholding 81
5.11.2.4. Brazil Receivables Bank Transfer 81
5.11.2.5. Latin America Reports 82
5.11.2.7. Legal Entity Configurator 82
5.12. Oracle Financial Services Accounting Hub (FSAH) – New Product 83
5.12.1. Overview 83
5.12.2. Features 83
5.13. Oracle Internal Controls Manager 84
5.13.1. Overview 84
5.13.2. Features 84
5.13.2.1. External Auditor Ready Reporting 84
5.13.2.2. Export Search Results to Excel 84
5.13.2.3. DBI for Compliance 84
5.13.2.4. Segregation Of Duties: Concurrent programs in Constraint Definition 85
5.13.2.5. Segregation Of Duties: Constraints with incompatible sets 85
5.13.2.6. Segregation Of Duties: Re-validating constraints after corrective actions 86
5.13.2.7. Segregation Of Duties: Complaint Provisioning of User Accounts 86
5.13.2.8. Upload Recommended Settings 86
5.13.2.9. Application Controls Change History Reports 86
5.13.2.10. Application Control Overrides in Suppliers and Supplier Sites 86
5.13.2.11. Profile Option Change Tracking 86
5.14. Oracle Internet Expenses 87
5.14.1. Overview 87
5.14.2. Features 87
5.14.2.1. Expense Allocations 87
5.14.2.2. Global Per Diem and Mileage 88
5.14.2.3. Cash Advances Management 89
5.14.2.4. Bar Coding 89
5.14.2.5. Manager Approvals 89
5.14.2.6. Audit Management 90
5.14.2.7. Audit Automation 91
5.14.2.8. Receipts Management 91
5.14.2.9. Entertainment and Fringe Benefits Policy Compliance 91
5.14.2.10. Credit Cards 92
5.14.2.11. Expense Report-Level Descriptive Flexfields 92
5.14.2.12. Attachments 93
5.14.2.13. Expense Analysis and Reporting 93
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5.14.2.14. Ad Hoc Reporting 93
5.14.2.15. Terms and Agreements 93
5.14.2.16. Region-Based Confirmation Page Messages 93
5.14.2.17. Help Desk Support 94
5.14.2.18. Contact Us 94
5.14.2.19. Expense Report Export 94
5.15. Oracle iReceivables 95
5.15.1. Overview 95
5.15.2. Features 95
5.15.2.1. Oracle Trading Community Architecture 95
5.15.2.2. Oracle Payments 95
5.15.2.4. Enhanced User Self Registration 96
5.15.2.5. Cross Customer Site Payments 96
5.16. Oracle Loans 97
5.16.1. Overview 97
5.16.2. Features 97
5.16.2.1. Loan Type and Product Configuration 97
5.16.2.2. Multiple Disbursements 97
5.16.2.3. Loan Portfolios, Graphs & Online Reporting 97
5.16.2.4. Sophisticated Credit Decisioning 98
5.16.2.5. Federal Budgetary Control 98
5.16.2.6. Floating Rate and Weekly Payment Frequency 98
5.16.2.7. Enhanced Payment Plans with Rules 98
5.17. Oracle Payables 99
5.17.1. Overview 99
5.17.2. Features 99
5.17.2.1. Legal Entity 99
5.17.2.3. Representation of Suppliers in the Trading Community Architecture (TCA) 99
5.17.2.4. New User Interface for Supplier Entry and Maintenance 100
5.17.2.5. Introduction of Invoice Lines 100
5.17.2.6. Invoice Processing for Contract Financing, Retainage, and Progress Terms 101
5.17.2.7. Enhanced Invoice Approval Includes Line Level Approval 102
5.17.2.8. Non PO Invoices Entered via iSupplier Portal 102
5.17.2.9. Collaboration with Suppliers to Resolve Disputes 102
5.17.2.10. Oracle E-Business Disbursement Requests 102
5.17.2.11. Enhancements to Payment Banks, Branches, and Accounts 102
5.17.2.12. Payment Process Enhancements 103
5.17.2.13. Accounts Receivable / Accounts Payable Netting 103
5.18. Oracle Payments 104
5.18.1. Features 104
5.18.1.1. Advanced and Highly Configurable Formatting Framework 104
5.18.1.2. Flexible Validation Model 105
5.18.1.3. Secure Payment Data Repository 105
5.18.1.4. Improved Electronic Transmission Capability 106
5.18.1.5. Flexible Support for Various Business Payment Models 106
5.18.2. Funds Disbursement Features 106
5.18.2.1. Enhanced Disbursement Process 106
5.18.2.2. Enhanced Electronic Payment Processing 107
5.18.2.3. Configurability 107
5.18.2.4. Payment Processing User Interface 108
5.18.2.5. Enhanced Check Printing Process 108
5.18.2.6. Migration of Global Features to Central Engine 108
5.18.2.7. Consolidation of Payment Formats 109
5.18.2.8. Improved Remittance Advice Reporting 109
5.18.3. Funds Capture Features 109
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5.18.3.1. Enhanced Configurability 109
5.18.3.2. Improved Support for Credit Card Security Features 110
5.18.3.3. Enhanced Payment Processing User Interface 110
5.18.3.4. PINless Debit Card Transaction Support 110
5.18.3.5. Improved Payer Notification of Settlement 111
5.18.3.6. Direct Debit Enhancements 111
5.18.3.7. Improved Batch Settlement Performance 111
5.19. Oracle Profitability Manager – New Product 113
5.19.1. Product Overview and Foundation 113
5.19.2. Release Overview 113
5.19.3.1. Powerful Allocation System 114
5.19.3.2. Rule Sets 115
5.19.3.3. Transaction Costing 115
5.19.3.4. Multi-Dimensional Activities and Cost Objects 115
5.19.3.5. Activity Rates 115
5.19.3.6. Activity Cost Rollup 115
5.19.3.7. Mapping to Cost Objects 116
5.19.3.8. Bill and Cost Object Unit Cost 116
5.19.3.9. Cost Object Extended Costs and Cost Object Total Costs 116
5.19.3.10. Customer Profitability 117
5.19.4. Features Not Included 117
5.19.4.1. Common Features 117
5.19.4.2. Oracle Profitability Manager Features 118
5.20. Oracle Public Sector Budgeting 119
5.20.1. Overview 119
5.20.2.1. Enhanced Position Default Rules 119
5.20.2.2. Configurable Position Worksheet Function Security 119
5.20.2.3. Posting Statistical Balance 120
5.21. Oracle Public Sector Financials 121
5.21.2.1. Centralized and Configurable Accounting 121
5.21.2.2. Integrated Budgetary Control 121
5.21.2.3. Flexible Reporting and Inquiry 121
5.22. Oracle Receivables 122
5.22.2.1. Revenue Management Enhancements 122
5.22.2.2. Line Level Cash Applications 123
5.22.2.3. Funds Capture Enhancements Uptake 123
5.22.2.4. Refunds Enhancements 123
5.22.2.5. Credit Card Error Handling 123
5.22.2.6. Credit Card Chargebacks 123
5.22.2.7. Deduction Management 123
5.22.2.8. Balance Forward Billing 124
5.22.2.9. Late Charges 124
5.22.2.10. Customer Standard User Interface Redesign 124
5.22.2.12. E-Business Tax 125
5.22.2.13. Legal Entities 125
5.22.2.15. Receivables Reconciliation Enhancements 125
5.22.2.16. Additional Bills Receivable Reference Field 126
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5.22.2.17. Collections Workbench Obsolescence 126
5.22.2.18. Bills of Exchange Obsolescence 126
5.22.2.19. Trade Accounting Obsolescence 126
5.22.2.20. AP/AR Netting 126
5.22.2.21. Golden Tax Adaptor for Mainland China 126
5.23. Oracle Transfer Pricing 128
5.23.1.1. Enhanced Multi-Currency Support 128
5.23.1.2. Single Assumption/Processing Dimension (Product Leaf) 128
5.23.1.3. Node Level Assumptions 129
5.23.1.4. Conditional Assumptions 129
5.23.1.5. Enhanced Ledger Migration Dimensionality 129
5.23.1.6. Cash Flow Edits Administration 129
5.23.1.7. Interest Rate Administration 130
5.24. Oracle Treasury 131
5.24.2.1. Cash Pooling Across Legal Entities 131
5.24.2.2. Foreign Exchange Hedge Effectiveness and Accounting Under IAS 39 and FAS 133 131
5.24.2.3. Automatic Bond Rate Resetting 132
5.24.2.4. Bank Account Update Program 132
5.24.2.5. Inter-Account Transfer Enhancements 132
5.24.2.6. Bank Account Model 132
5.24.2.7. Bank Account Balances 132
5.25. Oracle U.S. Federal Financials 134
5.25.2.1. Centralized and Configurable Accounting 134
5.25.2.2. Integrated Budgetary Control 134
5.25.2.3. Flexible Reporting and Inquiry 134
6. Daily Business Intelligence 135
6.1. Daily Business Intelligence (DBI) for Compliance 135
6.1.1. Overview 135
6.1.2. Features 135
6.1.2.1. Financial Statement Certification Dashboard 135
6.1.2.2. Open Remedial Action Summary 136
6.1.2.3. Significant Account Evaluation Result 136
6.1.2.4. Significant Account Evaluation Summary 136
6.1.2.5. Organization Certification Result 137
6.1.2.6. Organization Certification Summary 137
6.1.2.7. Process Certification Result 137
6.1.2.8. Process Certification Summary 137
6.1.2.9. List Reports 137
6.1.2.10. Compliance Environment Change 137
6.1.2.11. View Significant Account Details 138
6.1.2.12. Manage Closing Performance Findings and Remediation 138
6.1.2.13. Drill and Pivot the Report Layout 138
6.2. Daily Business Intelligence for Financials 139
6.2.1. Overview 139
6.2.2. Features 139
6.2.2.1. Receivables and Collections Management 139
6.2.2.2. Profit and Loss Analysis 140
6.2.2.3. Expense Analysis 140
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6.2.2.4. DBI for Public Sector Financials 141
6.2.2.5. DBI for Payables 141
6.2.2.6. Budget/Forecast Import from General Ledger 142
6.2.2.7. Role Based Security for Profit & Loss and Expense Management Dashboards 142
6.2.2.8. User Defined Dimension 143
6.2.2.9. DBI for Financials Back-End Enhancements 143
6.3. Financials Intelligence 144
6.3.1. Overview 144
7. Customer Data Management 145
7.1. Customer Data Hub 145
7.1.1. Overview 145
7.1.2. Features 145
7.1.2.1. Tax Geography Hierarchy Setup UIs 145
7.1.2.2. Multi-Org Access Control (MOAC) 145
7.1.2.3. Tax and Geography Validation 145
7.1.2.4. Data Quality Management Enhancements 146
7.1.2.5. Customer Data Librarian Enhancements 146
7.1.2.6. Integration Services 146
7.1.2.7. TCA Bulk Import Enhancements 147
7.1.2.8. New Workflow Synchronization 147
7.2. Customer Data Librarian 148
7.2.1. Overview 148
7.2.2. Features 148
7.3. Customers Online 149
7.3.1. Overview 149
7.3.2. Features 149
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1. Disclaimer
This Release Content Document (RCD) describes product features that are
proposed for the specified release of the Oracle E-Business Suite. This document
describes new or changed functionality only. Existing functionality from prior
releases is not described. It is intended solely to help you assess the business
benefits of upgrading to Release 12.0 and planning for the implementation and
upgrade of the product features described.
This document in any form, software or printed matter, contains proprietary

information that is the exclusive property of Oracle. Your access to and use of
this confidential material is subject to the terms and conditions of your Oracle
Software License and Service Agreement, which has been executed and with
with you agree to comply. This document and information contained herein may
not be disclosed, copied, reproduced or distributed to anyone outside Oracle
without prior written consent of Oracle. This document is not part of your
license agreement nor can it be incorporated into any contractual agreement with
Oracle or its subsidiaries or affiliates.
This document is for informational purposes only and is intended solely to assist
you in planning for the implementation and upgrade of the product features
described. It is not a commitment to deliver any material, code, or functionality,
and should not be relied upon in making purchasing decisions. The
development, release, and timing of any features or functionality described in this
document remains at the sole discretion of Oracle.
Due to the nature of the product architecture, it may not be possible to safely
include all features described in this document without risking significant
destabilization of the code.
R12 Release Content Document, Rev. 30 Page 1 of 11

2. Introduction
2.1. Purpose of Document

The Release Content Document (RCD), produced as part of Oracle’s
Applications Product Lifecycle (APL), communicates information about new or
changed functionality in the specified release of the Oracle E-Business Suite.
Existing functionality from prior point releases is not described. However,
content introduced by Family Packs, Mini-packs or Standalone patches since the
prior point release has been included in this document and denoted accordingly.
New features available with Oracle Financials Family Pack G or with any
product level Mini-packs that have been released since the release of Oracle E-
Business Suite 11i10 are included in this document and are denoted accordingly.

3. Release 12.0 Objectives
Release 12.0 is designed to increase the ease with which you understand and
process your worldwide business and address compliance in every nation. It
reflects the maturity of several initiatives designed to rationalize subledger
bookkeeping, generalize transaction tax compliance and improve access to
subledger data, with the intention of both facilitating subledger shared services
and improving and standardizing throughput. Also in support of shared service
ideals, we’ve revised our bank and disbursement models.
We’ve distinguished the data from the management of general ledgers, improved
legal entity support and intercompany processing, and built a new row and
column consolidation system, rich in financial management functions. These
features are designed to expedite your regional and group control, lower your
finance expenses, and speed decision making by centralizing the processing of
dispersed data. Daily Business Intelligence is greatly expanded, and XML
Publisher brings powerful report customization to the end-user’s desktop. Your
decision-making requirements also drove radical improvements to our budgeting,
profit management and activity analytics, which along with the new Financial
Consolidation Hub are applications built on the shared Enterprise Performance
Foundation.
In addition to these initiatives, we’ve included many more enhancements and

new features to the E-Business Suite.
In Release 11i, a user assigned to an Operating Unit (OU) would process data
from the products deployed in that OU. To process data for another OU, a user
would log out of the first and into the second. The data generated in that OU
would be accounted for according to rules generated by various product
accounting engines, and posted to general ledger in ways appropriate for the
different products, some generating part of the detail at different times in the
process. General Ledger sets of books (SoB) were self-contained, reflecting the
balances of the entity to which you’d assigned the SoB, and managed by users
assigned to the SoB.
In Release 12.0, by contrast, users can be assigned to multiple operating units,

and are supported by processes and transactions that can span operating units.
Their data is book-kept according to rules stored in a single accounting engine,
and the accounting is stored in subledger tables that are standard across all
products. Complete accounting is maintained for every appropriate event, and all
subledger entries are fully balanced and detailed. A single, common posting
engine summarizes to your required level of detail, and posts to General Ledger.
Sets of Books are replaced by the accounting entity’s ‘ledger’ for data, and its
‘Ledger Set’ for processing, from reporting, opening and closing, through
allocations. Ledgers can be combined into ledger sets, and GL users are assigned
to the ledger sets.
User access to multiple operating units is called ‘Multi-Org Access Control’,

(MOAC). The new subledger accounting architecture is described in the
Subledger Accounting (SLA) section. Ledgers, ledger sets and multiple ledgers
are described in the General Ledger section.

Financial Management
Information Architecture Release 12
Ledgers and Ledger Sets –
Centralized Accounting Lower Cost, Better Data
Planning &
Rules and Entries Scorecard Budgeting
Profitability
Dr Cr Consolidation Analysis
Ledger and Ledger Enterprise Performance

Subledger Sets Foundation
Accounting
Feeder 1 Responsibility
Systems
• Data Segmentation AND

Processing Efficiencies
• Fewer Responsibilities
Inventory Receivables Projects
1 Responsibility
Work in Operating Units with
Process Purchasing Payables Assets MOAC
We’re sure you will derive many benefits from the new architecture. The SLA
approach to subledger accounting brings an immediate improvement in subledger
to general ledger reconciliation, for example, before you take any steps to exploit
the features.
Accounting for subledger transactions at the event in a standard manner with a

single accounting engine allows us to provide multiple accounting
representations for a single event. A purchase can be simultaneously accounted
for an increment to inventory for your US GAAP or IAS/IFRS accounting, and
as a debit to the P&L for your national compliance accounting. The accounting
entity involved can maintain multiple ledgers, each complying with a different
set of accounting principles – we call them ‘accounting methods’, and, of course,
the transactions and ledgers can be valued and denominated in different
currencies; indeed, you can now generate currency views of a ledger at the
subledger transaction, general ledger transaction, general ledger balance, or
consolidation workplace levels, whether you use IAS 21 or FAS 52 Translation
or Remeasurement conversion methods.
Combining ledgers into sets will be attractive not only in nations where you
might have many ledgers serving regulated registered companies, but also across
continental regions where locally managed statutory ledgers are echoed
automatically by centrally managed single currency corporate ledgers at the
parent’s management style or GAAP, whether that be IAS/IFRS, Japan, China, or
US GAAP.
Our new transaction tax engine is nexus driven; that is, it looks to the appropriate
transaction data to figure the authority and taxes involved. This allows a shared
service center to more easily process VAT and sales taxes accurately for its
clients, no matter what country they might be in. Equally, the new bank account
and disbursement models facilitate the payment of invoices and other payables

out of different operating units, from an appropriate bank account, and with the
appropriate intercompany handling.
Intercompany processing is dramatically revised by enhancements in both

Financial’s intercompany management and Supply Chain Management’s
Enhanced Drop Shipments. Rather than a GL only system, Financials now links
into Receivables and Payables to generate matching and tied documents
(configurable though Bill Presentment) and a new reconciliation scheme.
Related SCM products, discussed in the SCM RCD, provide transfer pricing
modeling and enforcement, inventory consignment (at subsidiaries or otherwise),
and tracking of profit in inventory. All feed back to General ledger and the
Financial Consolidation Hub for elimination.
Underlying many of the improvements in transaction tax, intercompany, and

shared service capabilities is a reinforced legal entity model, more closely
aligned, we hope, with your actual legal structure.
We’ve striven to keep your upgrade path straightforward. After upgrading to

Release 12, your installation should behave as it did on Release 11i. What was
in a Set of Books will be in a Ledger with its own Ledger Set. SLA will return
the same accounting as the earlier accounting engine did. Operating Units will
still ‘stripe’ your transaction data. You’ll see immediate benefits in subledger
accounting, XML publishing applied to reports, additional DBI portlets and
pages, and many other features like AR-AP netting, gross margin analytics in
AR, and so on.
You can then exploit the new features at your own pace. Start by assigning
several OUs to individual users, or by combining several ledgers into one ledger
set. Later explore revising accounting rules with the SLA engine, or tackling a
complex tax situation with the tax engine. Pretty soon, you’ll be thinking of
simplifying the processes, eliminating Sarbanes-Oxley or Eight Directive
problem areas, and shifting into top gear.

4. Oracle Financials Applications – Architectural and
Closely-related Enhancements
4.1. Multi-Org Access

4.1.1. Overview
A Shared Services model of operations drives cost savings and increases

information quality. In an effort to focus business units on their core
competencies, increase efficiencies company-wide, and better manage and access
information, companies consolidate non-revenue generating, administrative tasks
in Shared Service Centers. Eliminating redundant processes, continuously
lowering the unit costs per transaction through self-service, automating
processes, and standardizing common business practices reduces costs. By
centralizing information through a Shared Service Center, a consolidated view of
essential decision-making information is available and accessible globally.
Standardization of common business practices also adds to the timeliness and
accuracy of data. With consistent business processes throughout the enterprise,
information can be gathered uniformly, with consistent quality.
Services can be shared at many different levels, and shared service centers can
exist for different reasons. For example, many Oracle customers have created
Shared Service Order desks, Shared Service Reporting Centers, Shared Service
General Ledger Centers, Shared Service Disbursement Centers, Shared Service
Inventory Management Centers, Shared Service Procurement Centers and so on.
Many of these centers may be combined as one center.
This chapter discusses release content facilitating sharing services in subledger

products. Various products exploit these features to provide powerful cross
organization processes, and exploit the intercompany features to supply the
mandatory and appropriate interorganization accounting.
4.1.2. Features
4.1.2.1. Multi-Org Access Control

Multi-Org Access Control enables companies that have implemented a Shared
Services operating model to efficiently process business transactions by allowing
them to access, process, and report on data for an unlimited number of operating
units within a single applications responsibility. This increases the productivity
of Shared Service Centers, as users and processes no longer have to switch
applications responsibilities when processing transactions for multiple operating
units at a time. Data security and access privileges are still maintained using
security profiles that now support a list of operating units.
4.1.2.2. Multi-Org Security Profile Preferences

A Multi-Org Security Profile defines the list of operating units to which a user
has access. If a user typically uses a subset of the operating units in his security

profile, he may set up Preferences to limit the operating units available to him
during transaction processing. The user can also set a default ‘operating unit’ to
minimize manual data entry when an operating unit context is required.
4.1.2.3. Enhanced Multi-Org Reporting

Consistent with the Multi-Org Access Control feature, users are able to run
reports using two levels:
• Ledger: The report runs for all operating units within a ledger to which the
user has access
• Operating Unit: The report runs for a selected operating unit that belongs to
the user’s security profile
4.1.2.4. Multi-Org Integration with Accounting Setup Manager

The Accounting Setup Manager is a central location to define your accounting-
related setup across all financial applications. Here, you can define your legal
entities and their accounting context, which includes the ledgers that will contain
the accounting data for each legal entity. Multi-Org is integrated into the
Accounting Setup Manager such that users can define operating units and their
relationship to ledgers. For each operating unit, users can also select a legal
entity to provide a default legal context during transaction processing. This
centralizes your setup and makes it easier to inquire on and maintain
relationships between ledgers, legal entities, and operating units.

4.2. Oracle Cash Management
4.2.1. Overview
Oracle Cash Management is an enterprise-wide solution for managing liquidity

and controlling cash.
4.2.2. Features
4.2.2.1. Bank Account Model

Shared Service approaches to disbursement and collections are enhanced by the
deployment of Oracle Cash Management’s new Bank Account model.
Overall, the set up, maintenance, and control of all internal bank account
information is much easier and more reliable with this new feature. It provides a
single access point for defining and managing internal bank accounts for Oracle
Payables, Oracle Receivables, Oracle Payroll, Oracle Cash Management, and
Oracle Treasury. Bank account access for each application is explicit for internal
security and control purposes. Each account is associated with a Bank and Bank
Branch defined in Oracle’s common Trading Community Architecture (TCA).
A single Legal Entity is granted ownership of each internal bank account. One or
more Organizations are granted usage rights, which provides significant benefits
in key areas like reconciliation that previously required managing multiple
account records for these types of purposes. Additionally, reconciliation options
can now be defined at the bank account level, providing even more flexibility
and control of that process.

of Shared Service Centers for users no longer have to switch applications
responsibilities when processing transactions for multiple operating units at a
time. Data security is still maintained using security profiles that are defined for
a list of operating units and determine the data access privileges for a user.
Support for Shared Services, and related Multi-Org Access Control features, is
available in Oracle Cash Management. This set of features greatly enhances
processing and reporting efficiency for Oracle Cash Management users. Please,
refer to the full feature descriptions in the Multi-Org Access section of this
document for more details.
4.2.2.3. Subledger Accounting

Oracle Subledger Accounting provides tools that allow users to meet External
Reporting (IAS.IFRs, US GAAP, etc.), corporate management, and national
fiscal accounting requirements. With a flexible tool called Accounting Methods
Builder, users can determine the accounts, lines, descriptions, summarization,
and dates of their journal entries. Users can also add detailed transaction
information to journal headers and lines. Detailed subledger accounting journals
are available for analytics, auditing, and reporting. They are summarized,
transferred, imported and posted to Oracle General Ledger. For more details,
please see the Oracle Subledger Accounting section of this document.
Oracle Cash Management utilizes Oracle Subledger Accounting for setting up

accounting rules and for generating journal entries related to Cash Management
transactions.
4.2.2.4. Bank Account Balances and Interest Calculation

Many new bank account balance types are supported for all internal bank
accounts including ledger, available, value dated, 1-day float, 2-day float, and
projected balances. Users are able to track closing ledger and available balances
as well as month-to-date and year-to-date averages. Flexible reporting tools are
available to view all this centrally stored balance history for trend analysis as
well as to compare actual versus expected balances based on daily cash position
projections. Additionally, the system allows the user to verify interest amounts
charged or credited by their banks based on balance history and user-defined
interest rate schedules.
4.2.2.5. Bank Account Transfers

Bank Account Transfer functionality was previously supported only through
Oracle Treasury. Now, bank account transfers are supported directly in Oracle
Cash Management. This feature allows users to create these types of cash
transfers between internal bank accounts manually or automatically through
physical cash pools. The related cash flows are stored in Oracle Cash
Management for reporting purposes and are reflected in positioning. Payment
processing and accounting is managed via Oracle Payments and Oracle
Subledger Accounting.
4.2.2.6. Cash Pooling

Organizations frequently use cash pooling techniques to optimize funds by
consolidating bank balances from across multiple bank accounts. By
consolidating balances and minimizing idle funds, organizations may decrease
external borrowing costs and increase overall investment returns.
Oracle Cash Management supports common cash pooling techniques by allowing

users to group bank accounts into different types of pooling structures and by
managing the associated activity for either centralized or decentralized business
environments. This functionality was originally made available to Oracle
Treasury users in Oracle Financials Family Pack G and will now be supported
via Oracle Cash Management. The following types of cash pools are supported.
4.2.2.6.1. Self-Initiated Physical Cash Pools

Organizations may choose to monitor individual bank account balances
manually and then physically move cash to or from their accounts only as
needed based on their particular preferences or objectives.

Oracle Cash Management allows users to define and manage these types of
bank account structures called Self-Initiated Physical Cash Pools. These
pool definitions include rules to automatically determine when bank account
transfers should be made and for what amounts. Users are able to review
transfer proposals from their Cash Positions based on daily activity as well as
target balances, minimum transfer amounts, and rounding rules. Users are
able to accept or overwrite system proposed transfers, and Oracle Cash
Management then generates all their bank account transfers automatically.
Note: Cash Pools spanning multiple legal entities often require tracking
internal loans and interest, or In House Banking. Related functionality is
available for Oracle Treasury users and is described in the Oracle Treasury
section of this document.
4.2.2.6.2. Bank-Initiated Physical Cash Pools, or Zero Balance Accounts

(ZBA’s)
Organizations may choose to utilize a bank service that automatically sweeps
all end-of-day balances to or from main concentration accounts. Since this
type of physical cash pool arrangement typically leaves no cash in the sub
accounts overnight, it is often referred to as a Zero Balance Account or ZBA
relationship.
bank account structures called Bank-Initiated Physical Cash Pools. Oracle
Cash Management automatically creates and reconciles all the related sweep
transactions based on reported prior-day bank statement activity.
Note: Cash Pools spanning multiple legal entities often require tracking
internal loans and interest, or In House Banking. Related functionality will
be available for Oracle Treasury users and is described in the Oracle
Treasury section of this document.
4.2.2.6.3. Notional Cash Pools

Organizations may choose to utilize notional cash pool arrangements offered
by banks that track not only individual account balances but also the net
balance across all accounts. This technique is common in some countries
and does not require physical cash transfers to be made between accounts for
concentration purposes.
bank account structures called Notional Cash Pools. The consolidated
notional account balance is calculated, and users are able to manage the net
notional balance along with individual bank accounts in Oracle Cash
Management.
4.2.2.7. Bank Statement Accounting

This feature allows users to define mapping rules that can automatically create
and reconcile transactions in Oracle Cash Management based on reported prior-
day bank statement lines. Users are able to define flexible matching rules based
on bank accounts, transaction codes, and text search strings. This feature
significantly reduces reconciliation issues associated with repetitive first notice
items like bank fees or bank account interest. The transactions generated and
stored in Oracle Cash Management are available for reporting as well as for
automatic reconciliation. Accounting for these transactions is managed via
Oracle Subledger Accounting.
This feature was first released in Oracle Financials Family Pack G.
4.2.2.8. Bank Account Signing Authorities

This feature allows Oracle Cash Management users to enter, maintain, and report
on those people in their organizations with bank account signing authority. Users
are able to indicate single and joint signing limits for each bank account as well
as signer group categories, effective dates, approval status, and other relevant
information. Users are also allowed to attach electronic copies of documents like
passport photos, signature files, or bank documents directly to the signing
authority records. It is possible to use Oracle Workflow to route approval
requests for signing authority, or users can set statuses manually. Reporting used
for internal control and audit purposes is available via an Oracle Discoverer
view. People with signing authority need to be defined in Oracle HRMS or via
HR Foundation, if Oracle HRMS is not installed.
4.2.2.9. Cash Positioning Intra-day Activities

This feature provides additional flexibility in how users view intra-day bank
statement activity in their cash positions. It is possible to include all or portions
of intra-day bank statement activity in the cash position, and these cash flows are
used when calculating projected closing balances. Alternatively, the set up for
cash positions still allows users to exclude the intra-day bank statement activity
entirely or to include it for reference purposes against expected activity from
other sources (but not include intra-day bank statement activity in the calculation
of closing projected balances).

4.3. Oracle General Ledger
4.3.1. Overview
Oracle General Ledger delivers extraordinary enhancements in this release so

you can maximize accounting process efficiencies across your enterprise while
still achieving a high level of information and setup security. Fundamental
improvements in Oracle General Ledger enable you to perform simultaneous
accounting for multiple reporting requirements and allow superusers to access
and process data for multiple ledgers and legal entities at the same time powering
ledger and reporting shared services. For those users who should have more
limited access, you can secure both information and setup definitions, like
MassAllocations and FSG reports, so they can only view, update, or execute
those processes to which they have access. You are able to achieve a high level
of efficiency and security, without having to sacrifice one for the other, with
these new enhancements in Oracle General Ledger.
4.3.2. Features
4.3.2.1. Accounting Setup

4.3.2.1.1. Simultaneous Accounting for Multiple Reporting Requirements
Companies that are global in nature and that have operations in different
localities often have multiple reporting requirements. These companies and
their subsidiaries often need to satisfy the accounting and reporting
requirements for each country as well as those of the parent company. This
involves performing accounting in accordance with accounting principles
and standards of multiple countries and in different currencies, charts of
accounts, and/or calendars. The reporting requirements can also be statutory
in nature, and one subsidiary may even need to satisfy multiple sets of
statutory requirements. Oracle General Ledger simplifies the simultaneous
management of the accounting for all of these different reporting
requirements in this latest release. You are able to define your legal entities
and the setup needed to address each accounting and reporting requirement
using the Accounting Setup Manager. New enhancements and integration
with Subledger Accounting enable Oracle General Ledger to perform
accounting for all reporting requirements of a legal entity simultaneously.
4.3.2.1.2. Centralized Accounting Setup

The Accounting Setup Manager is a central location to define your
accounting-related setup across all financial applications. Here you can
define your legal entities and their accounting context, which includes the
ledgers* that contain the accounting data for each legal entity. If a legal
entity has multiple reporting requirements, you can include additional
reporting currencies or ledgers in the accounting context to satisfy the
additional requirements.
4.3.2.1.3. Enhanced Reporting Currency Functionality

Multiple Reporting Currencies functionality is enhanced to support all
journal sources. Reporting sets of books are now simply reporting
currencies. Every journal that is posted in the primary currency of a ledger

can be automatically converted into one or more reporting currencies. This
conversion can be performed by Subledger Accounting, to convert all
subledger journal entries, or by General Ledger, to convert more summarized
General Ledger journals. You can choose to convert any journal sources and
categories.
4.3.2.2. Improved Processing Efficiency

4.3.2.2.1. Simultaneous Data Access to Multiple Legal Entities and
Ledgers
You can access multiple legal entities and ledgers when you log into Oracle
General Ledger using a single responsibility. This improves processing
efficiency by reducing the need to switch between responsibilities when
trying to access data for different ledgers or legal entities.
4.3.2.2.2. Simultaneous Opening and Closing of Periods for Multiple

Ledgers
The Open and Close Periods Programs has multiple enhancements. You are
able to run any of the Open and Close Periods Programs from the Concurrent
Manager. This allows you to take advantage of scheduling and request set
capabilities for greater processing efficiency. Also, if you manage multiple
ledgers, you can open or close periods for multiple ledgers simultaneously.
You can even keep the status of periods across multiple ledgers in synch with
new programs that ensure a specific period is Open or Closed for all of the
ledgers you manage.
4.3.2.2.3. Cross-Ledger and Foreign Currency Allocations

You are able to allocate financial data from one or more ledgers to a different
target ledger. This enables you to perform cross-ledger allocations, which is
useful for purposes such as allocating corporate or regional expenses to local
subsidiaries when each entity has its own ledger. This is possible even if the
target ledger is in a different currency than the source ledger(s) because you
can create allocations in foreign currencies. Foreign currency allocations are
also useful within a single ledger if you need to allocate amounts to a
currency that is different from the primary currency of a ledger.
4.3.2.2.4. Simultaneous Currency Translation of Multiple Ledgers

If you manage multiple ledgers, you can run the Translation program for
multiple ledgers simultaneously.
4.3.2.2.5. Financial Reporting Across Ledgers

You are able to run Financial Statement Generator (FSG) reports for multiple
ledgers simultaneously. This is useful if you manage multiple ledgers and
want to run a balance sheet or income statement report for all of your ledgers
at the same time. You can also create an FSG report that includes data from
multiple ledgers in a single report; the data in each ledger can be displayed in
a separate row or column, or data from multiple ledgers can be aggregated
into a single row or column. This is useful for reports such as consolidating
financial statements that display data for each subsidiary in separate columns,
as well as aggregated data in a total column.
4.3.2.2.6. Automatic Journal Copy

You are able to automatically copy an existing journal batch to create a new
journal batch with the same journals and journal lines. This reduces the
amount of work you need to do to re-create a journal that has already been
defined. During the copying process, you have the option to change the
period and effective date of the journal batch.
4.3.2.2.7. Streamline Automatic Posting

AutoPost Criteria can be shared across ledgers that have the same chart of
accounts and calendar. This dramatically reduces the number of AutoPost
Criteria sets you need to define. Furthermore, you can automatically post
journals across multiple ledgers simultaneously.
4.3.2.2.8. Streamline AutoReversal Criteria Setup

AutoReversal Criteria can be shared across ledgers. This dramatically
reduces the number of AutoReversal Criteria sets you need to define.
4.3.2.2.9. Streamline Consolidation Mappings

You are able to define Chart of Accounts Mappings (formerly known as
Consolidation Mappings) between two charts of accounts. Therefore, if you
have multiple Consolidation Definitions for parent and subsidiary ledgers
that share the same chart of accounts pair, and their mapping rules are the
same, you only have to define a single Chart of Accounts Mapping. This
significantly reduces the number of mappings you need to define if your
Consolidation Definitions involve the same pair of charts of accounts and the
mapping rules are the same.
4.3.2.2.10. Replacement for Disabled Accounts

When an account is disabled, you can prevent transactions that include the
account from erroring during journal import by defining a replacement
account for the disabled account. Journal import replaces the disabled
account with the replacement account and continue the journal import
process if the replacement account is valid. This improves processing
efficiency by preventing the journal import process from erroring and
enabling the successful creation of the journal with minimal user intervention
when an account has been disabled.
4.3.2.3. Data Security

4.3.2.3.1. Data Security across Legal Entities and Ledgers
In this release, since you can access multiple legal entities and ledgers when
you log into Oracle General Ledger using a single responsibility, Oracle
General Ledger provides you with flexible ways to secure your data by legal
entity, ledger, or even balancing segment values or management segment
values. You are able to control whether a user can only view data, or
whether they can also enter and modify data for a legal entity, ledger,
balancing segment value or management segment value.
4.3.2.3.2. Management Reporting Security

You can designate any segment (except the natural account segment) of your
chart of accounts to be your management segment and use Oracle General
Ledger’s security model to secure the management segment for reporting and
entry of management adjustments.
4.3.2.3.3. Prevent Reversal of Journals with Frozen Sources
Journals with frozen journal sources are prevented from being reversed to
streamline the reconciliation of data from Subledger Accounting sources.
4.3.2.3.4. Prevent Reversal of Unposted Journals

Users are no longer allowed to reverse ‘Unposted’ journals.
4.3.2.3.5. Control Accounts

You are able to control data entry to an account by ensuring it only contains
data from a specified journal source and to prevent users from entering data
for the account either in other journal sources or manually within general
ledger.
4.3.2.3.6. Definition and Setup Security

You can secure your setup and definitions by granting specific privileges to
users to view, modify, and/or execute a definition. This enables you to
control which of your users can view a definition, but not modify or execute
it, or execute a definition without modifying it, or vice versa. For example,
since MassAllocations and Financial Statement Generator components are
sharable across ledgers that have the same chart of accounts, you can secure
these definitions so that some users cannot view or modify the definitions
created by other users. Following is a list of definitions that have this
security available:
• MassAllocation and MassBudget Formulas
• FSG Reports and Components
• Accounting Calendars
• Transaction Calendars
• AutoPost Criteria Sets
• AuoReversal Criteria Sets
• Budget Organizations
• Chart of Accounts Mappings
• Consolidation Definitions
• Consolidation Sets
• Elimination Sets
• Ledger Sets
• Recurring Journals and Budget Formulas
• Rate Types
• Revaluations
4.3.2.4. Auditability
4.3.2.4.1. Accounting and Reporting Sequencing

Sequential numbering of accounting entries is a strong business requirement
in many countries in Europe, Asia Pacific and Latin America and is used by
fiscal authorities to check the completeness of a company’s accounting
records. You can assign sequence numbers to journals during the posting
process to ensure that finalized journal entries are properly sequenced.
Separately, you can also assign a sequence number to journals when a period
is closed to sequence journals for reporting purposes.

4.3.2.4.2. Journal Line Reconciliation
The ‘GL Entry Reconciliation’ feature within Oracle Financials Common
Country features is part of Oracle General Ledger and renamed ‘Journal Line
Reconciliation’. This feature enables you to reconcile journal lines that
should net to zero. This is often done to reconcile suspense accounts, or in
countries like Norway, Germany, or France, it is used to audit or reconcile
payroll and tax payable accounts, or to verify the open balances of specific
accounts at the end of the period.
4.3.2.5. Others
4.3.2.5.1. Entered Currency Reporting and Analysis

Oracle General Ledger tracks the balances that are entered in your ledger’s
primary currency. This enables customers to perform currency analysis on
amounts that are entered in the ledger’s primary currency for the purposes of
currency valuation and hedging.
4.3.2.5.2. Foreign Currency Recurring Journals

You can use Recurring Journals to create foreign currency journals. This
enables you to pre-define journals that are recurring in nature and that are in
foreign currencies and simply generate them when you need them. For
example, a subsidiary (with a different primary currency than its parent
company) that has borrowed money from its parent company can generate a
recurring monthly interest payable entry to the parent company in the
parent’s currency.
4.3.2.5.3. Intercompany Balancing Support for Encumbrances

Intercompany encumbrance journals are automatically balanced during
journal posting.
4.3.2.5.4. New iSetup API’s

Oracle General Ledger adds the following iSetup API’s to enable you to
quickly create your setup data and definitions:
• Ledger Sets
• Data Access Sets
4.3.2.5.5. Integration with Subledger Accounting
Oracle Subledger Accounting provides tools that allow users to meet multi-
gaap, corporate, and fiscal accounting requirements. With a flexible tool
called Accounting Methods Builder, users can determine the accounts, lines,
descriptions, summarization, and dates of their journal entries. Users can
also add detailed transaction information to journal headers and
lines. Detailed subledger accounting journals are available for analytics,
auditing, and reporting. They are summarized, transferred, imported and
posted to Oracle General Ledger.
Oracle General Ledger’s integration with Subledger Accounting provides a
unified process to post data to general ledger from Oracle subledgers and
external feeder systems. Also, it provides a consistent view when drilling
down from general ledger balances to subledger transactions. Please refer to

the Oracle Subledger Accounting section of this document for more
information.
4.3.2.5.6. Enhanced Intercompany

The Global Intercompany System (GIS) feature from previous releases has
been incorporated into the Oracle Advanced Intercompany System product.
Please refer to the Oracle Advanced Global Intercompany System section of
this document for more information.
4.3.2.5.7. Account Analysis and Drilldown

Account Analysis & Drilldown is a new web-based interface that allows you
to easily review and analyze your general ledger financial data. You can view
the balances of multiple detail or summary accounts in a single page and drill
down to supporting journal entries and subledger transactions all within a
browser window. You can control the display of your data by choosing from
various layouts, specifying your sort criteria, or defining filters to only
retrieve balances that meet your specific conditions. After fine-tuning your
personal search criteria, you can even save the search criteria for future use.
These features give you immediate access to your live general ledger data so
that you have the information you need to make better business decisions.
Note: This feature was first released in Oracle Financials Family Pack G.
4.3.2.5.8. GL Standard Reports Integration With XML Publisher

Oracle General Ledger’s Account Analysis, General Journals and Trial
Balance standard reports are now integrated with XML Publisher. Using
XML Publisher allows you to leverage the formatting features of a word
processing application to design the layout of your report. You can
personalize your report by changing fonts, adding images, inserting headers
and footers, creating borders, changing column widths, and reordering/
adding/deleting columns. This enables you to create professional-quality
reports directly from the general ledger, which ensures the integrity and
auditability of the information. For more information on all formatting
features, please refer to the XML Publisher User Guide.
Note: This feature was first released in Oracle Financials Family Pack G.
4.3.3. Terminology
Term Definition
Ledger
Defined in Oracle General Ledger, one or more legal or
business entities that share a common chart of accounts,
calendar, currency, and accounting method. Ledgers
replace set of books in Release 12.0.
Ldger sets
A group of ledgers that share the same chart of accounts,
calendar, and period type. In Oracle General Ledger, they
enable you to perform certain operations for multiple
ledgers at the same time, i.e. opening periods and running
reports.
Set of books
Set of books is converted to a ledger in Release 12.0. See
Term Definition
ledger.

4.4. Oracle Subledger Accounting – New Product
4.4.1. Overview
Oracle Subledger Accounting is a new product in this release.
Oracle Subledger Accounting enables corporations to comply with corporate,

local and managerial accounting and audit requirements via increased control,
visibility and efficiency.
Oracle Subledger Accounting increases control by storing a complete and

balanced journal entry for each subledger transaction and GL date. Detailed
drilldown and audit information is captured for each journal entry line. By
storing journal entries in a common data model, Oracle Subledger Accounting
constitutes a single source of truth for all accounting, reconciliation and
analytical reporting. As Oracle Subledger Accounting stores the articulated
balance sheet side of every entry and cross references it to the business
transaction’s evidentiary document, reconciliation from General Ledger through
Subledgers to the documents and from there to the business transactions is
greatly simplified.
Oracle Subledger Accounting facilitates exercising internal control and policy by

implementing accounting rules you define. The rules refer to system data from
many sources, and can be tailored very finely by document type and document
line.
Oracle Subledger Accounting streamlines the close by providing a common

posting engine, so that all subledger products and non-Oracle products can
transfer controlled and summarized data to the General Ledger using a standard
methodology and auditable, reviewable process.
Oracle Subledger Accounting improves efficiency by speeding period close,

simplifying business and regulatory changes and making acquisitions easier.
Oracle Subledger Accounting increases management visibility by supporting

multiple parallel accounting representations. Corporate accounting policies can
be defined and implemented globally; free from limitations imposed by local
fiscal reporting requirements. Oracle Subledger Accounting allows accounting
policies to be created once and deployed many times. Minimization of
maintenance and elimination of duplication makes accounting policies easier to
implement, maintain and hence, control. Subledger accounting enables business
users to control all aspects of journal entries including debits and credits;
accounting flexfields, descriptions and GL date
4.4.2. Features
4.4.2.1. Journal Entry Setups

Oracle Subledger Accounting gives users control over the definition of their
journal entries.

Users are able to define the following components of journal entries:
• GL Dates
• Entry Descriptions
• Line Descriptions
• Amounts (accounted and gain/loss)
• Accounts: rules can be created for either the entire account combination or
for individual segments based upon constants or from transaction information
• Journal Lines: side, summarization, type
• Reconciliation References
The definition of these components can be based upon information from
subledger applications such as transaction or setup values. Conditions may be
used to determine how and when many of these components are used, and to
create defaults. Setups can be quickly copied and altered to modify seeded
definitions. Multi-language support is available for journal entry descriptions.
For each setup, Oracle Subledger Accounting stores information to determine

whether it was seeded or completed by the user allowing customers to take
advantage of upgrades without worrying about overwriting their customized
setups.
4.4.2.2. Date Effective Application Accounting Definitions

Oracle Subledger Accounting allows users to group a consistent set of journal
entry setups used in generating accounting for the transactions of an application.
These are called application accounting definitions. For example, a user can
create an application accounting definition that consists of setups to provide a
U.S. GAAP representation of their inventory accounting.
Because accounting requirements change over time, Oracle Subledger

Accounting provides the ability to enter date ranges for application accounting
definitions. Multiple application accounting definitions can be created for each
product with different date ranges. New definitions can be tested and
implemented in advance of required changes and scheduled to automatically take
effect on a chosen date. The setups related to an application accounting
definition can be locked to prevent changes.
4.4.2.3. Multiple Accounting Representations

Oracle Subledger Accounting offers the ability for users to create multiple
accounting representations for the same subledger transactions each to be stored
in a separate ledger. These can be used to meet mutually exclusive accounting
requirements.
For example, a customer may need to use a fiscally mandated chart of accounts
and at the same time create a corporate representation using a management chart
of accounts. Any of the Oracle Subledger Accounting journal entry setups can
vary by representation.

4.4.2.4. Summarization Options
For each ledger, customers can decide, by application, whether they would like to
summarize their journal entries. If they would like to summarize, they can do it
either by GL Date, or by GL Period.
4.4.2.5. Draft Accounting

When users create accounting they can elect to use draft mode. This allows them
to view and report on the accounting without saving it. They can change Oracle
Subledger Accounting setups or transaction data if they are dissatisfied with the
accounting for any reason. The accounting can be recreated as final, and any
changes in setups or data will be used to derive the final accounting.
Draft accounting may be used in an unlimited manner for each journal entry
allowing iterative corrections before committing the accounting as final. This
minimizes the need for correcting journal entries and facilitates a clean audit.
4.4.2.6. Online Accounting

Users have the ability to immediately create, view, transfer and post accounting
in General Ledger when entering transactions into Oracle subledger applications
such as Oracle Payables and Oracle Receivables.
Oracle Subledger Accounting uses the same accounting rules and validations for
both the offline and online accounting. Users can create the accounting online in
draft mode, which allows them to preview accounting online, and to make
adjustments before accounting in final mode.
4.4.2.7. Replacement for Disabled Accounts

When an account is disabled, users can continue creating accounting for
transactions that include the account, without erroring. Oracle Subledger
Accounting replaces the disabled account with the replacement account and
continues processing. This improves processing efficiency by enabling the
successful creation of journal entries with minimal user intervention if an account
has been disabled.
Oracle Subledger Accounting stores substituted disabled accounts on subledger

journal lines for audit and reconciliation purposes.
4.4.2.8. Process Category Accounting

Users are able to elect to account for a limited subset of their journals based upon
business transaction entities using process categories.
4.4.2.9. Straight Through Accounting Processing

Oracle Subledger Accounting allows users to create subledger accounting and
transfer and post the GL accounting in a single step. When creating journal
entries either online or offline by the concurrent program, users can choose to
immediately transfer and post the accounting in General Ledger. Oracle

Subledger Accounting therefore supports straight through processing from the
subledger transaction to General Ledger balances.
4.4.2.10. On-line inquiries

Oracle Subledger Accounting provides multiple inquiries to view subledger
accounting. Key transaction information are stored so users can easily
understand what transaction has been accounted.
For example, a journal entry for an Oracle Receivables invoice includes the
customer name, customer number, the source, the transaction type, transaction
date, and the invoice number.
• Users can inquire upon all the accounting for a transaction either from the
transaction workbench or from a common inquiry form. In the case of
multiple accounting representations, they can compare the journals for each
representation side by side to see the differences
• Users can inquire based upon subledger journal entry header information
such as the GL date, or the ledger
• Users can inquire based upon subledger journal entry line information such
as the amount or account
• Users can view their subledger journal entries in a T-account format
Oracle Subledger Accounting takes advantage of the Oracle personalization
framework that allows users to customize their view of the accounting using any
of the attributes of the journal entry and to save predefined searches. Embedded
flows support a bi-directional drill between journal entry headers, lines, T-
accounts, and transaction data.
4.4.2.11. Journal Entry Sequencing

Oracle Subledger Accounting supports two different mechanisms of sequencing
its journal entries. The sequencing information is available for querying and
display of journals.
4.4.2.11.1. Accounting Sequencing

Oracle Subledger Accounting assigns a sequence to its journal entries as they
are completed.
4.4.2.11.2. Reporting Sequencing

Oracle Subledger Accounting supports separate sequencing designed to meet
legal requirements in Southern Europe. The reporting sequence is assigned
to both the subledger and general ledger journal entries when the General
Ledger period is closed. This feature replaces the Accounting Engine (AX)
legal sequencing and Libro Giornale features.
This type of sequencing is used by most of the legal reports required in some
countries as the main sorting criterion to display the journal entries

4.4.2.12. Third Party Merge Accounting
Users have the ability to account for changes in third parties. These would
include correcting the third party related accounting if the party involved in the
transaction was incorrect, or managing the impact of third party merges or
acquisitions on control accounts.
4.4.2.13. Manual Journal Entries

Oracle Subledger Accounting offers manual subledger journal entries that are
within the context of an application. These can be used to record changes in
third party information or reference values. Manual entries can be accounted on-
line. They can be accessed via on-line inquiries and reports.
4.4.2.14. Third Party Control Accounts

Oracle Subledger Accounting stores balances for control accounts by customer
and supplier. It uses a new key accounting flexfield qualifier that allows users to
specify control accounts. General Ledger also prevents the entry of manual
journal entry lines for control accounts thus ensuring that subledger control
account balances are consistent with General Ledger balances for the same
account combination.
To calculate the balances, Subledger Accounting uses the customer and supplier
information it stores on journal entry lines. Users can complete inquiries based
upon the customer and supplier information. Reports are available that detail, by
third party, the journal lines that are used to create the balance for each third
party control account.
4.4.2.15. Transaction Account Builder

Transaction Account Builder provides a flexible mechanism to derive default
accounts for transactions. Product development and implementation teams can
create rules to determine the accounts that will be defaulted onto transactions.
Rules can be created for either an entire account combination or for individual
segments. They can be based upon transaction information or created as constant
values.
4.4.2.16. Multi-period Accounting

Users can create accrual and recognition journal entries to allocate costs over a
range of accounting periods.
When creating transactions, users specify the date range for which a line should
be accounted. The standard Subledger Accounting journal entry setups such as
how to determine the account and description of the subledger journal entry lines
are available for defining both the accrual and recognition journal entries.
Users can also configure the GL dates, a prorating method, and have the ability to
create a single recognition journal based upon the multiperiod end date.
Recognition journals for future periods are created as incomplete until the period
is open or enterable and are available for inquiries and reports.

4.4.2.17. Accrual Reversal Accounting
Users can indicate that a journal entry should automatically be reversed on either
the next day or in the next GL period. This feature can be used for period end
accruals or for other accounting that requires an automatic reversal of an accrual.
It is possible to drill to the related reversal when viewing an accrual journal entry
and vice versa.
4.4.2.18. Business Flows

Users can create accounting policies based upon both intra and inter-product
business flows. This allows accounting definitions to explicitly handle cases
where there is a logical relationship between accounting for two or more
transactions faclitating reconciliation for intermediary accounts.
Examples are as follows.
• When creating the accounting for a payment, the user can indicate that the
account used to book the invoice liability through the invoice transaction
should be relieved
• When accounting for a Payables invoice matched to a receipt, the user can
indicate that the receipt accrual booked at the time of receipt be relieved and
that the description from the receipt be used
4.4.2.19. Accounted and Gain/Loss Amount Calculations

Subledger Accounting can use conversion information such as the conversion
rate, entered amount and currency information to calculate accounted and
gain/loss amounts.
Rules can be created that determine the account used to account for gain or loss
based upon whether there is a gain or a loss.
4.4.2.20. Application Accounting Definitions Loader

The Application Accounting Definitions (AAD) Loader enables customers to
import and export application accounting definitions and journal entry setups.
Users can build and test their journal entry setups on a test instance, export them,
and then import them to their production instance.
The AAD Loader also supports concurrent development and version control of
the application accounting definitions.
4.4.2.21. Errors Accounting and Reporting

Subledger Accounting creates journals as completely as possible, even if there
are conditions that make the journal invalid. These journals have an error status
and are not eligible for GL transfer and posting. However, they are useful for
troubleshooting setup and information issues.
For example, if the journal entry has a GL date in a closed period, the entry is be
created and an error message indicates that the GL date must be adjusted or the
period must be opened.

To minimize reconciliation issues, Subledger Accounting ensures that when there
are multiple representations, all journals related to a given transaction must be
valid before they may be accounted.
Users can resubmit a request to create accounting and specify that they would
like to only process entries that have previously had errors. Errors may be
viewed both on standard XML Publisher templates and via on-line inquiries.
4.4.2.22. Standard Reports

Oracle Subledger Accounting reports is built to allow users to take full advantage
of the features of Oracle XML Publisher. Oracle Subledger Accounting delivers
data definitions and Oracle XML Publisher templates for the following reports:
• Journal Entries Report: This report provides detailed journal entry

information on a transaction-by-transaction basis for a period or period range
• Account Analysis Report: This report provides drill-down information
about the movement on a particular account or account range for a period or
period range
• Third Party Balances Report: This report provides balances and account
activity information for suppliers and customers for a period or period range
• Open Account Balances Listing: This report gives users the ability to net
account activity across all the journals related to a document, and to reconcile
the outstanding amounts with the GL balances. This report replaces existing
product functionality such as the Payables Trial Balance
4.4.2.23. Enhanced Reporting Currency Functionality

Multiple Reporting Currencies functionality is enhanced to support all journal
sources. Reporting sets of books are now known simply as reporting currencies.
Every journal that is posted in the primary currency of a ledger can be
automatically converted into one or more reporting currencies. This conversion
can be performed by Subledger Accounting, to convert all subledger journal
entries, or by General Ledger, to convert more summarized General Ledger
journals. You can choose to convert any journal sources and categories.
4.4.2.24. Diagnostics Framework

Oracle Subledger Accounting relies upon transaction information provided by
other applications to create accounting. The Diagnostics Framework provides a
tool to view the information used to create subledger journal entries.
This can assist in understanding how the journal entry setups were used to create
journals. It can also be useful for Oracle support and for customers using
Subledger Accounting to better understand the information provided to
Subledger Accounting.
The results of the diagnostics are available as an HTML report.

4.4.3. Oracle Subledger Accounting Enhances the Functionality of the
Global Accounting Engine
In this release, Oracle Subledger Accounting replaces the Global Accounting

Engine. Oracle Subledger Accounting further extends the Global Accounting
Engine functionality by providing customizable accounting rules via a flexible
and robust accounting rules setup.
All Global Accounting Engine features are supported by Oracle Subledger

Accounting.
A fully automated migration of all Global Accounting Engine generated data to

Oracle Subledger Accounting is provided.
The following table lists the Oracle Subledger Accounting feature(s) that replace
the functionality of the Global Accounting Engine:
Global Accounting Engine Oracle Subledger Accounting
AX Rules Journal Entry Setups
Subledger Setup Date Effective Application Accounting

Definitions
Dual Posting Multiple Accounting Representations
Draft Accounting Draft Accounting
On-Line Inquiries On-Line Inquiries
AX Sequences Journal Entry Sequences
Customer Merge Third Party Merge Accounting
Manual Journal Entries Manual Journal Entries
Control Accounts Third Party Control Accounts

The following table lists the Oracle Subledger Accounting reports that replace
the corresponding reports of the Global Accounting Engine. XML Publisher
templates are provided so that any user can comply with their fiscal or statutory
specific reporting requirements.
Global Accounting Engine Oracle Subledger Accounting
AX Daily Journal Journal Entries Report
AX Account Balances Account Analysis Report
AX Control Account Balances Third Party Balances Report
Italian Daily Journal Book Journal Entries Report
The Global Accounting Engine supported subledger accounting requirements in

multiple European countries and delivered subledger accounting rule sets that
addressed those countries specific fiscal and legal requirements. Oracle
Subledger Accounting enables our customers to define rules sets to support
subledger accounting requirements for all countries, and all subledgers via our
rules definition setups. Oracle Subledger Accounting also delivers default
accounting rule sets that replace the rule sets of the Global Accounting Engine as
well as rule sets to support standard IAS/IFRS or US GAAP accounting. Oracle
SubledgerAccounting provides easy methodologies to create rule sets
(accounting methods) for any regulatory environment, while at the same time,
complying with the parent's company fiscal and management requirements.
Both the Global Accounting Engine and Oracle Subledger Accounting generate
accounting from a compiled definition of accounting rules defined by
users. Oracle Subledger Accounting further maintains version control on the
rules enabling users to modify the rules while maintaining auditability.
Oracle Subledger Accounting also enhances the integration of the accounting

within the E-Business Suite, streamlines the posting to General Ledger, and
provides standardized subledger accounting tables.
4.4.4. Terminology
Term Definition
Application Accounting A consistent set of journal entry setups for a specific

Definition product (application). Each application accounting
definition determines the accounting that will be
generated for a transaction or multiple events on a
transaction. For example, a user can create a product
definition that consists of setups to provide a US GAAP
representation of their inventory accounting. Multiple
Application Accounting Definitions can be created for
each product.

Term Definition
Subledger A ledger that is subsidiary to the General Ledger,

representing the accounting for a single subledger
product. Transactions occur in subledger products such
as Oracle Payables and Receivables. To represent the
financial impact of these transactions, accounting is
created as subledger and general ledger entries.
Subledger Journal Entry A subledger journal entry includes all of the journal
entry lines used to account for an accounting event
originating from a subledger product. Several subledger
journal entries can be summarized to create a single
general ledger journal entry. Because subledger journal
entries provide the details for accounting, their
corresponding general ledger entries are typically
summarized.

4.5. Oracle Legal Entity Configurator
4.5.1. Overview
Legal compliance remains of paramount importance in today’s global

marketplace. From an external viewpoint, all transactions are entered into by a
legal entity. Being able to easily manage transaction data by legal entity is key to
achieving such compliance. Oracle Legal Entity Configurator is a new addition
to Oracle E-Business Suite that enhances the ability to manage one’s legal
corporate structure and track data from the legal perspective. The solution
provides the foundation for features that help daily operations comply with local
regulations. For example, strengthening the recognition of legal ownership
enables accurate intercompany documentation as well as sophisticated tax
calculations specific to local jurisdictions. The legal functions set for each legal
entity provide basic process controls that facilitate internal control management.
Tracking one’s data from the legal perspective enables detailed reporting at legal
entity, establishment, and registration level.
The Oracle Legal Entity Configurator solution is built upon the principles of
completeness, flexibility, and convenience.
• The centralized data model supports legal information for internal legal
entities, legal authorities, and jurisdictions. It fulfills global requirements to
capture specific legal information that can differ by jurisdiction
• While compliance is important, achieving compliance should not
compromise flexibility in managing business operations to maintain a
competitive advantage. Therefore, the user is able to maintain legal and
operational organization structures as distinct and independent views
• To make legal compliance simple and convenient, the Oracle Legal Entity
Configurator provides a single place for setting up and maintaining legal
entities, legal functions, and supporting legal information
4.5.2. Features
4.5.2.1. Oracle Legal Entity Configurator

Oracle Legal Entity Configurator strengthens one’s corporate legal structure in a
centralized solution. With an accurate representation of one’s internal Legal
Entities, users are able to obtain a clear view of the organization and identify
transactions for legal compliance and reporting.
Oracle Legal Entity Configurator is the user interface that allows users to
conveniently setup and manage their legal structure, legal functions, and
supporting legal information in a single place.
Oracle Legal Entity Configurator is built to support global requirements for legal
entity information entry, supporting global requirements for registering legal
entities to several domains (e.g. income tax, commercial law) by geographic
region with the appropriate government/legal authorities, for the purpose of
claiming and ensuring legal and/or commercial rights and responsibilities.

Country specific fields and names are used to make the user interface intuitive for
a user in any region. Companies are able to include additional country-specific
information that they want to record for each legal entity.
Management tools are also provided to keep track of the latest information
entered so the user can easily monitor the required registration status for both
legal entities and establishments.
4.5.2.2. Legal Authorities and Jurisdiction

The legal authorities and jurisdictions feature allows the creation and
maintenance of the supporting legal information in a central place.
Users are able to setup jurisdictions that legal entities and establishments will
register to, in order to achieve legal compliance. This feature provides consistent
fiscal and other government information for reporting and tax purposes.
To facilitate the setup, the most common jurisdictions are seeded. Users are able
to define additional jurisdictions and legal authorities, categorize them by
territories (at country, state, city levels) and legislative categories (e.g. income
tax, commercial law, transaction tax, etc). Users can also setup information at
jurisdiction level such as registration number format and legal functions to be
performed by legal entities, which default automatically during legal entities and
establishment registration processes.
4.5.2.3. Legal Date Tracking and Auditing

Legal date tracking and auditing captures changes to critical legal data. In many
countries a full history of the changes to legal data is mandatory.
The changes to the legal structure are usually required as a result of changes in
the company’s business operations, moving to new location, or the introduction
of new legislation.
Auditing records the user who makes the change and reasons for the change.
Tracking allows the user to specify exact dates when a particular change will
become effective.
4.5.3. Terminology
Term Definition
Establishments Registration of a legal entity with provincial or state and

other authorities in addition to its central registration,
required in countries where legal registrations are needed
at certain local levels.
Legal Authority Government, legal body in charge of enforcing
legislation (laws), collecting fees/taxes, and making
financial appropriations within a given physical area, for
a type of law (legislative category). For example; the
Internal Revenue Service is the legal authority for income
tax Law in the U.S.

Term Definition
Jurisdiction Intersection of the physical territory (group of countries,

country, state, county, parish, etc.), and Legislative
category (labor law, transactions tax law, income tax
laws) within which legal authority may be exercised.
Legislative Category Set of laws of same category made by a government
legislative authority for regulating relationships inside a
community.
Legal Function For exercising legislation, legal authority determines
functions that the registered entity will have to perform
(e.g. produce a yearly report). These functions vary per
type of laws and territory

4.6. Oracle Advanced Global Intercompany System
4.6.1. Overview
Oracle Advanced Global Intercompany System (AGIS) streamlines the

intercompany trading and reconciliation process across Ledgers. Oracle AGIS
facilitates balanced intercompany transactions for the global enterprise because it
provides a forum for trading partners to exchange intercompany transactions in a
controlled manner.
Enhanced for this release, Oracle AGIS allows companies to comply not only
with local regulations, but also to follow established corporate standards for
processing intercompany transactions between related legal entities of an
enterprise. It also provides interactive reconciliation reporting which allows drill-
down to the details of Intercompany Account Balances so the source of
discrepancies to the balances of each trading partner’s account balances can be
found quickly.
4.6.2. Features
4.6.2.1. Intercompany Balancing

Intercompany and Intracompany Balancing features are updated in this release.
When a transaction with multiple balancing segment values is entered, the
Balancing Process automatically generates the correct intracompany or
intercompany accounting entries, depending on whether the balancing segments
are in the same legal entity or in different legal entities.
If the balancing segments values are in the same legal entity (intracompany
accounting) the automatic Balancing Process uses Cross-Entity Balancing Rules
to generate the balancing accounting entries. You can specify both the Debit
Balancing Segment Value and Credit Balancing Segment Value for the balancing
relationship; this new dimension allows you to define explicitly the accounts that
should be used when any pair of balancing segments values are balanced against
each other.
If the balancing segments values are in different legal entities (intercompany

accounting) the automatic Balancing Routine uses Intercompany Accounts setup
to create the balancing accounting lines. You can setup several intercompany
accounts for your intercompany activities, and select one as the default to be used
for automatic balancing.
4.6.2.2. Intercompany Invoicing

New in this release is the automatic creation of payables and receivables invoices
for intercompany transactions. Where local statutory compliance requires an
Intercompany-Organization to produce physical invoices for intercompany
transactions, this can be defined as part of the setup for the legal entity. Oracle
AGIS then synchronizes the automatic creation of payables and receivables

invoices for the initiator and recipient organizations whenever an intercompany
transaction is processed.
4.6.2.3. Intercompany Reconciliation

Users can perform reconciliation between Legal Entity Relationships belonging
to the same or different ledgers. The users are able to run the reconciliation
process any time for open or closed periods, and can choose how much detail
they want to work with.
4.6.2.4. Manual Intercompany Transactions

The entry of intercompany transactions is enhanced in this release.
For all initiator and recipient organizations, the legal entity information is clearly
displayed on each transaction. Intercompany accounting entries (or where
appropriate, intracompany accounting entries) are generated automatically based
on centralized setup.
The initiator organization is able to create a single batch containing multiple

recipient transactions across different ledgers, currencies and calendars, which
are automatically submitted to all recipients for approval. When a batch is
entered with multiple recipients, Oracle AGIS optionally prorates the distribution
amounts for each recipient, based on the proportion of the transaction allocated to
that recipient.
4.6.3. Terminology
Term Definition
Intercompany Transactions between two or more related internal legal

Transactions entities within an enterprise
Intracompany Transactions between two or more business units within
Transactions the same legal entity

4.7. Oracle E-Business Tax – New Product
4.7.1. Overview
Oracle E-Business Tax is a new product in this release.
Oracle E-Business Tax provides the infrastructure for transaction tax knowledge
management and delivery using a global system architecture that is configurable
and scalable for adding country specific tax content. As the single point solution
for managing transaction-based tax, Oracle E-Business Tax uniformly delivers
tax services to all E-Business Suite business flows through one application
interface. Oracle E-Business Tax consists of a tax knowledge base, a variety of
tax services that respond to specific tax events, a set of repositories (for tax
content and tax recording) that allows customers to manage their local tax
compliance needs in a proactive manner, as well as the ability to integrate with
external tax content providers through a single integration point. In short, Oracle
E-Business Tax is the global and consistent compliance repository that
encapsulates fiscal and tax rules in a single point solution for tax events that is
easy to integrate, extend, and implement.
Oracle E-Business Suite products that are integrated for tax services with E-
Business Tax in this release include the following:
• Oracle Purchasing
• Oracle Internet Procurement
• Oracle Receivables
• Consigned Inventory
• Oracle Payables
• Oracle Intercompany Invoicing
• Oracle Order Management
• Oracle Trade Management
• Oracle Services Contracts
• Oracle Order Capture/iStore/Quoting
• Oracle Internet Expenses
• Oracle Project Accounting
• Oracle General Ledger
4.7.2. Features
4.7.2.1. Configuration Options and Provider Service Subscriptions

Users using a subscription model can share the tax setup. The owner of tax setup
data is defined as a Configuration Owner and can be an Operating Unit or a
Legal Entity. In addition, Oracle E-Business Tax supports the concept of a
Global Configuration Owner, an enterprise level configuration owner that can
hold data which is common and visible to all configuration owners.
A legal/business entity may want to own i.e., to retain the responsibility to create
and manage tax content using a new subscription model. This subscription
model also allows Legal/business entities to use, and override as necessary,
content that is managed and maintained by the Global Configuration Owner by
simply choosing the appropriate configuration option for each regime. Although

transaction data is secured using the data security mechanism of the application
product that requests a tax service, the tax setup data that is used in servicing that
request is obtainable based on the configuration option chosen for each regime
that is applicable to a transaction.
In addition, a Configuration Owner may choose to subscribe to the services of a
Tax Calculation Service Provider for a given regime.
4.7.2.2. Events and Configuration Owner Options

Users have greater granularity in defining tax control options. A new Tax Events
model allows E-Business Suite applications to map their various documents and
actions across applications into corresponding tax event classes and tax event
types within Oracle E-Business Tax. These tax event classes are business
processes that would typically have the same treatment with respect to taxes. For
example, purchase orders and payables invoices are classified as a ‘Purchase
transactions’. A configuration owner can define control options for a tax event
class or at a lower level such as a particular application document. Control
options include:
• Define rounding level
• Allow override of calculated taxes
• Allow manual tax lines to be entered
• Allow recalculation of manual tax lines
• Allow self-assessment for imported documents
4.7.2.3. Tax Configuration Manager

The Tax Configuration Manager component is responsible for creating and
maintaining the structural foundation of tax, the building blocks. This tax content
information such as taxes, tax jurisdictions, fiscal classifications, tax rates, tax
rules, is stored in a centralized repository. In Release 12.0, existing tax
information is conveniently loaded into this repository and transaction processing
can continue uninterrupted.
Additionally, there are options available to optimize tax set up and allow each
organization to subscribe to and use a single common configuration source for all
transactions, or to use the common configuration source with other ‘override’ tax
set up specific to its own tax requirements.
4.7.2.4. Tax Determination Services

The Tax Determination Services component calculates transaction taxes based on
transaction details and tax setup information. This component is involved in the
following:
• Automatically determining which taxes are applicable for the transaction

based on the place of supply, the tax registrations of the parties involved, and
other applicability rules
• Determining how they should be calculated
• Producing the results from the calculation

The results are an ordered list of applicable taxes and associated details such as
tax jurisdiction, tax, etc., which can be updated by the user.
The level of complexity of tax rules varies between different tax regimes.
Depending on the complexity of the tax rules in different regimes, tax rules may
or may not be defined for all of the above processes. If there is no complex rule
associated with any of the above processes, then the default values, as specified
during setup, are used during the Tax Determination process.
Additionally, the user has the ability during transaction entry to:
• Enter or change additional tax relevant factors such as Intended Use,

Business Transaction Category, and Product Fiscal Classification to ensure
the proper taxes are determined for special cases and exceptions
• View, drill down, enter and change tax line details
4.7.2.5. Centralized Tax Record Repository for Audit and Reporting

Tax transactions and all the noteworthy tax information for each transaction is
recorded in a centralized Tax Record Repository. This includes the recording of
inputs i.e. transaction data, and outputs, i.e. tax lines and distributions, that can
be used by management and tax authorities for managing, auditing and reporting
purposes. In Release 12.0, historical and current tax records are available in the
new Tax Record Repository for reporting purposes.
4.7.2.6. Tax Reporting

Tax authorities around the world have promulgated a substantial variety of
requirements pertaining to the communication of tax information, making tax
compliance both varied and complex.
Tax Reporting is flexible enough to provide data in a user-friendly format that

allows the standard and identified country specific requirements to be met. Users
are able to use the information in the centralized tax record repository to create
legal documents and reports that facilitate tax compliance. In Release 12.0, the
existing tax reports are available as before, based on the new repository. In
addition, new custom reports can be generated quickly from these templates
using Oracle XML Publisher.
4.7.2.7. Tax Simulator

A user interface is provided that allows users to enter transactions, such as a
Purchase or Sales Invoice, and view the results of tax calculation. This is a
valuable tool for tax managers who can use this interface to ensure that the tax
configuration, including any rules that have been setup, provide the expected
results. The Tax Simulator can also help the tax manager simulate the effect of a
new rule or new ‘incremental’ setup data, such as a new tax rate. The Tax
Simulator enables the user to;
• View tax lines for ‘simulated’ transactions

• Drill down into an audit trail of information for each tax line, identifying the
tax rules that were used

• Generate a log file that shows the tax rules that were found to be
unsuccessful
• Simulate the tax on standalone documents, tax on related documents such as
a payables invoice created by matching to a purchase order, documents to
which another document has been applied, such as a prepayment applied to a
payables invoice, adjusting documents such as a credit memo, and imported
documents with tax lines.
4.7.2.8. Guided Configuration

Oracle E-Business tax enables a tax manager, i.e., an expert in the domain of tax,
to configure the system to meet the tax requirements in one or more countries.
Oracle E-Business tax provides features such as the following:
• A setup task list that lists the sequence of tasks that need to be completed; the
order in which it typically needs to be completed; whether a given step is
mandatory. Where applicable, it also provides the user with a link to
navigate to the UI where a given task can be completed.
• A guided rule definition process particularly catering to first-time or
occasional users whose primary expertise is in tax, not IT. This follows a
step-by-step rule definition process using terminology and concepts that a tax
manager would understand.
• An expert users rule entry process that enables users familiar with the
terminology and the process to quickly create tax rules.
• Content containers that explain concepts, provide background information or
information about related functionality.
• Information icons that alert the user in particular to seemingly innocuous
options that may have profound downstream impacts.
4.7.2.9. Additional Enhancements

Oracle E-Business tax embodies the existing tax features that were supported in
the prior release. In addition, Oracle E-Business Tax also supports new local and
regional tax requirements:
• Deferred Tax in Payables
• Enhanced handling of Tax on Freight
• Sales and Use Tax in procurement
• Enhanced exemptions and exceptions
• Multiple Tax Registrations
• Multiple Recovery types
• Tax reporting codes
• Cash as well as Accrual Basis reporting for tax
• Enhanced handling of Tax on Intercompany Movements
4.7.3. Terminology
Term Definition
Deferred Tax The accrual (and therefore the settlement and/or reporting)
of taxes due or recoverable is delayed from the tax date
basis due to special tax rules either enforced by the tax

Term Definition
authority, or allowed with the agreement of the tax

authority.
Fiscal Classification A classification used by a tax authority. This can be
further classified as: party fiscal classification, party site
fiscal classification, product fiscal classification,
transaction fiscal classification, user-defined fiscal
classification and document fiscal classification.
Place of Supply The specific tax jurisdiction where the supply of goods or
services is deemed to have taken place
Provider An organization that provides tax information to another
organization. e.g., Vertex and Taxware provide tax
content for the US Sales tax regimes.
Subscriber A party that subscribes to a service.
Tax Applicability The process that identifies all the taxes that need to be
determined/levied for a given transaction. The result of
this process is a list of applicable taxes.
Tax Content The master and reference data (i.e. non transactional)
necessary to support the determination, recovery,
settlement or reporting of one or more taxes.
Tax Configuration This creates, maintains and manages (including adding,
Manager updating, disabling, purging, validating or listing data) tax
content to meet global and local tax compliance needs.
Tax Content Repository
This contains the master and reference data required in the
Oracle E-Business setup, as well as the tax rules that may
be used in tax processing.
Tax Determination The process and data that includes the following sub-
processes: tax applicability, tax status determination, tax
calculation, and tax lines determination.
Tax Determination A flexible, data driven, rules-based model that
Services enables users to define complex and varied rules.
Tax Event Class
A business classification to categorize a group of
documents (application event classes) of one or more E-
Business Suite Applications that are essentially the same
from the tax perspective.
Tax Line
A line with the tax recovery amount, or non-tax
recoverable amount, by tax and tax jurisdiction, for a
given transaction line and tax event. A tax line may have
one or more tax recovery schedules associated.
Tax Record Repository
This component of E-Business Tax contains all the key
attributes necessary to record the tax event and ensure the
accuracy of information provided.
Tax Regime The set of tax rules that determines the treatment of one or
more taxes. e.g., the Excise tax regime in India includes
rules for Excise tax, and Additional Excise tax; VAT
regime in Argentina includes rules for Standard VAT,

Term Definition
Additional VAT, and Perception VAT.

Tax Rule
The set of conditions used to determine tax.

5. Oracle Financial Applications - Features and
Enhancements
5.1. Oracle Advanced Collections

5.1.1. Overview
Oracle Advanced Collections is designed for collection agents and managers;

receivables account managers, and revenue management personnel responsible
for resolving delinquencies and recovering outstanding debt from customers.
5.1.2. Features

of Shared Service Centers since users no longer have to switch applications
responsibilities when processing transactions within multiple operating units at
one time. Data security, which is maintained using security profiles that are
defined for a list of operating units, determines the data access privileges for a
user.
5.1.2.2. Uptake of Cross-Operating Unit Initiative

This allows users of Oracle Advanced Collections to view and manage their
customers across operating units. Collections activities such as strategies and
work items, dunning letters, and collections calls can incorporate transactional
and customer data from different operating units if needed.
5.1.2.3. Consolidation of Collections Functionality into Advanced

Collections
The Collections Workbench module in Oracle Receivables is obsolete and
replaced with like functionality in Oracle Advanced Collections. This includes
functionality relating to customer interactions and correspondence, transaction
processing, and dunning activities. Additional features in Oracle Advanced
Collections such as scoring, collections strategies, enhanced payment and
promise processing, automated promise tracking, and automated collector work
assignment are also be available. A migration white paper and migration scripts
will be provided to Oracle Receivables Workbench customers moving to Oracle
Advanced Collections.

5.1.2.4. New Implementation Checklist and Setup Screens
Functional and technical managers responsible for setting up and implementing
Oracle Advanced Collections can start the process by navigating to the
Collections Checklist, an implementation tool designed to ease setup and provide
a single place to record and manage implementation decisions. The Checklist
guides the manager through a questionnaire that asks a few key questions about
the intended use of Oracle Advanced Collections. The manager’s responses to
these questions automatically set system profiles and settings for Collections.
The questionnaire also enables or disables a set of Task Pages on which the
manager provides additional detailed information that set additional settings for
Oracle Advanced Collections. Collections Checklist allows functional experts to
do an ‘out of the box’ set up of Oracle Advanced Collections independent of
corporate IT staff.
5.1.2.5. Improved Payment Processing and Customer Funds Capture

Oracle Advanced Collections uses Oracle Payments’ new payment formatting
and end-to-end electronic payment processing features made available in this
release. Previously collectors had to manually type in customer credit card or
bank account information when taking payments, resulting in decreased
efficiency and increased risk of data entry errors. Now collections agents can
select from customer credit card and bank account data (masked if desired)
already in the system. If customers' payment method data needs to be updated or
added, agents can easily navigate to another screen to add this information.
Payment method and processing rules can be easily configurable from new setup
pages, and customers' payments can be automatically authorized and captured.
5.1.2.6. Use of Oracle Territory Management to Define Collections

Territory Hierarchy
Deploying organizations using Oracle Advanced Collections are able to use
Oracle Territory Management’s ‘collections’ usage to support the creation and
use of collections territory hierarchy. This allows unique collections territories to
be created, different than sales territories. Collectors can then be assigned to
customers within these collections territories.
This feature was first released in Oracle Advanced Collections Mini-pack H

(11i.IEX.H).
5.1.2.7. AR ‘Collector’ Field and Extension to Territory Management

Oracle Advanced Collections uses the Territory Management module to define
and manage customer and collector alignment within defined territories. Access
to customer records and actionable work is then assigned to collectors based on
membership in territories and customers in each territory.
Oracle Advanced Collections also makes use of the ‘collector’ field from Oracle
Receivables in the Customer Standard screen to assign work. This allows
Collections customers already using the ‘collector’ field to take advantage of the
functionality in the Oracle Territory Management module. Collections activities
for specific customers can then be assigned to collectors who ‘own’ those
customers.

Conversely, collections agents previously assigned territories and customers
through the Territory module can now also be added to Oracle Receivables’
‘collector’ field. This extends collections agent information to other Receivables’
users. It also allows those collectors to use Receivables’ collections-related
reports.

(11i.IEX.H).
5.1.2.8. XML Publishing Technology for Collections Correspondence

Oracle Advanced Collections uses the Oracle XML Publisher tool to manage and
generate all correspondence sent to customers, including dunning notices and
confirmation letters regarding payments, promises, disputes and adjustments.
Reconfigured Correspondence templates and associated queries are included for

use in test or production environments. Additional templates can be created
using XML Publisher. Correspondence output can be email, print or fax.
Collections users can see a history of correspondence sent to customers on the
History tab. Collections customers using Oracle One-to-One Fulfillment can
migrate to XML Publisher or continue to use that module.

(11i.IEX.H).
5.1.2.9. Configurable Metrics

Many collections organizations use metrics specific to their organization or
industry to better understand the collections situation of customers, accounts, or
bill-to locations. A new configurable Metrics tool allows managers to define
metrics formulas that are automatically calculated and displayed on the Profile
tab for collections users. A number of preconfigured metrics formulas are
included for testing or use in production systems.
The Profile tab layout has been revised to support the new Metrics tool.
Additional fields relating to a customer’s credit profile have also been added.

(11i.IEX.H).
5.1.2.10. Aging-based Dunning Plans

Dunning Plans include aging bucket parameters for all data levels (customer,
account, bill-to, transaction) in Oracle Advanced Collections. A collections
manager can configure dunning plans that look at the oldest aged invoice for
each customer, along with the score, and have the system send different dunning
letters to customers in each aging bucket. Optional dunning callbacks can also be
included as part of dunning plans.

(11i.IEX.H).

5.1.2.11. Collections Best Practices
Enhancements that reflect collections best practices include the following;
• System defaults set to the recommended Customer operational data level for
optimal performance, efficiency, and a complete view of customer accounts,
overdue amounts, scoring and strategy execution, work assignment, and
correspondence. Deploying organizations can change default settings if their
current business rules require that they run Collections at account, bill-to or
transaction level. Collections agents can easily change data levels from the
main Collections screen at any time.
• New preconfigured best practice elements for scoring engines and scoring
components, strategy templates and work item templates, collections
correspondence, and metrics formulas (mentioned previously). These
elements are also set at the default Customer level although additional
preconfigured elements are shipped for organizations that run their
collections business at Account, Bill to or Transaction level. Preconfigured
elements can be used during implementation testing or in live production
systems.
• New ‘All’ history for a comprehensive summary view of everything that has
happened with a particular customer. Like the current history types available
from the Collections ‘History’ tab, the new All history type allows a
collector to roll-up every customer interaction, transaction, and
correspondence event to the Customer level or drill down to specific
Accounts, Bill-tos, or Transactions if desired.
• Inclusion of dunning history originated in Oracle Receivables in the

Correspondence (previously called ‘Dunning’) history on the Collections
History tab for a comprehensive list of all dunning notices sent to a customer.
• Uptake of Oracle Receivables’ ‘exclude from dunning’ feature that allows a

collector to remove a customer from future dunning activity. The collector
can exclude and/or re-include a selected customer for dunning from the
toolbar on the main Collections screens. This allows collectors to deliver
better customer service to high-value customers or customers who don’t need
dunning notices.
• Ability to designate a contact as the default collections and/or dunning

contact from the Actions menu list. Once designated, that ‘collections’
contact name and contact information automatically appears when the
organization is displayed. ‘Dunning’ contacts are sent dunning notices as
part of Collections Strategies or Dunning Plans.

(11i.IEX.H).
5.1.2.12. Filterable Bali Tables

In order to improve user efficiency and better use of data displayed on the
summary table in the Transactions tab, the ability to set filtering criteria and save
the filter rules has been added. For example a collector can set filtering rules to

show transactions related to a particular Purchase Order on the Transactions
summary table. Filters can be created and saved, then accessed later by the user.
A new Full Screen button has been added to the Transactions tab that displays up
to 18 transaction records at one time, with the ability to scroll to more. The
Filtering tool is available on the full screen as well.

(11i.IEX.H).
5.1.2.13. Consolidated Collections with Lease Contracts or Loans

Oracle Advanced Collections allows a collections agent to see both Oracle
Receivables and Lease Management or Oracle Receivables and Oracle Loans’
transactions simultaneously. This provides the collector with a complete picture
of the customer who has a loan or leases capital equipment as well as orders
goods and services. This consolidated collections approach allows the collector
to more effectively work with customers during a single customer interaction. A
new Loans tab has been added to Oracle Advanced Collections for Oracle Loan
users. Along with the collections agents’ screens, Collections extends the
consolidation of Receivables and Loans or Leasing collections to its strategies
and scoring tools for more effective collections management.

(11i.IEX.H).
5.1.2.14. Search Tool Enhancements

The search tool in Collections includes the ability to search on additional
transactional criteria including purchase order, sales order, and shipping
information.

(11i.IEX.H).
5.1.2.15. Enhanced Scoring Capability

Oracle Advanced Collections allows scoring ranges to extend to negative
numbers and beyond the current 1-100 limits. Scoring also supports integer score
results and an ‘out of range’ feature that determines how to handle a score that
falls outside the anticipated score ranges.

(11i.IEX.H).
5.1.2.16. Automatic Strategy Changing

Collections situations for customers are rarely static; delinquency amounts and
balances can change rapidly. Oracle Advanced Collections supports the ability
for collections strategies to be automatically changed based on pre-determined
score ranges. This allows the collections organization to be even more responsive
and proactive to the dynamics of each customer.

(11i.IEX.H).

5.2. Oracle Assets
5.2.1. Overview
Oracle Assets, a comprehensive asset management solution, ensures maintenance

of accurate property and equipment inventory as well as optimal accounting and
tax strategies.
5.2.2. Features

gaap, corporate, and fiscal accounting requirements. With a flexible tool called
Accounting Methods Builder, users can determine the accounts, lines,
descriptions, summarization, and dates of their journal entries. Users can also
add detailed transaction information to journal headers and lines. Detailed
subledger accounting journals are available for analytics, auditing, and reporting.
They are summarized, transferred, imported and posted to Oracle General
Ledger. For more details, please see the Oracle Subledger Accounting section of
this document.
Oracle Assets is fully integrated with Oracle Subledger Accounting for creating
Journal Entries, Account drill down and Inquiry.
Oracle Assets provides several out-of-the-box sources and rules to derive account
code combinations and journal entry descriptions. Customers can use the seeded
Oracle Assets accounting definition or they may use the flexibility of SLA to
create their own definitions.
5.2.2.2. Enhanced Mass Additions Interface for Legacy Conversions

Additional attributes are available in the Mass Additions interface to ease legacy
data conversions. Attributes such as asset life, depreciation method, prorate
convention; bonus rule ceiling name, depreciation limit, and others can now be
directly imported from your legacy system instead of being derived from asset
category setups.
5.2.2.3. Automatic Preparation of Mass Additions

A set of extensible public API’s is available to automatically prepare a mass
addition line for all required attributes such as depreciation expense account,
asset category, location etc. with the goal of minimizing manual intervention by
the user in the mass additions workbench.

5.2.2.4. Enhanced functionality for Energy Industry
• Asset Impairment: Impairment is used to reduce the carrying value of a
producing asset. Expressed another way, impairment expense is simply an
unplanned depreciation expense. When entering an unplanned depreciation
expense, the user may enter a Type, Amount and Expense Account. ‘Type’
allows the user to indicate the nature of impairment performed. ‘Amount’ is
recognized as a current period expense in addition to the normal periodic
depreciation expense. The unplanned depreciation (impairment) ‘expense
account’ may be derived from the category setup or it may be entered at the
time of each impairment transaction
• Energy Units of Production Method: In the oil & gas industry, asset
properties may include fields, leases and wells. These assets are typically
associated with units of production (UOP) and are depreciated using a special
UOP depreciation method. ‘Energy’ assets are generally structured into two
levels, group and member assets, where the group asset is a collection of
several members. Units of production are entered on the group asset for
calculating depreciation and then allocated down to the member assets
• Energy Straight line Method: In the oil & gas industry, non-producing
assets are depreciated using the energy straight-line method based on the
asset’s net book value. Assets that depreciate using the energy straight-line
method may either depreciate at the member asset level or group asset level.
When the depreciation is calculated at the member asset level, it is calculated
based on each member’s life and then summed up to the group asset. When
depreciation is calculated at the group asset level, the life of the group asset
is used
5.2.2.5. Flexible Reporting using XML Publisher

Oracle Assets leverages the Oracle XML Publisher technology to support major
asset transaction reports. With XML Publisher, you can display reports in
variable formats by creating your own templates using familiar tools such as
Acrobat, Word and Excel.
5.2.2.6. Automatic Depreciation Rollback

Since release 11i, users have been able to run depreciation for an asset book
without closing the period. If additional adjustments are required in the current
period, then the user submits a process to roll back depreciation for the entire
book, performs the necessary adjustment(s) and then resubmits the depreciation
program. In Release 12.0 the intermediate manual step of rolling back
depreciation for the entire book in order to process further adjustments on
selected assets is no longer necessary. As before users may submit depreciation
for the entire book prior to closing the period. If it becomes necessary to process
financial adjustments on one or more assets, the user may proceed with the
transaction normally via the asset workbench or mass transactions.
Oracle Assets automatically rolls back the depreciation on just the selected assets
(instead of the whole book) and allows the transaction(s) to be processed
normally. The asset(s) for which depreciation was rolled back is automatically
picked up during the next depreciation run or at the time that the depreciation
period is finally closed.

5.2.2.7. Enhanced Logging for Asset Transactions and Programs
Through the common logging architecture, Oracle Assets ensures a common
repository for all log messages within and outside the product. This reduces
resource usage on the file system for excessively large log files.

5.3. Oracle Bill Presentment Architecture
5.3.1. Overview
Oracle Bill Presentment Architecture (BPA) allows you to retrieve billing data
from multiple data sources for presentment on a bill. This means that the
physically presented bill is no longer limited to information contained within
Oracle Receivables. BPA provides template-based configuration of online and
printed bills, giving you the ability to select the content of the bill, choose the
layout design, display parent billing lines and drilldown details, and then set up
the assignment of these billing templates by defining rules based on criteria you
specify. By separating bill presentment from transaction accounting, Oracle BPA
allows for more understandable and comprehensive bills, increasing the
likelihood and timeliness of bill payment.
5.3.2. Features
5.3.2.1. Balance Forward Bill Presentment

Oracle Bill Presentment Architecture supports the presentment of a balance
forward bill. A balance-forward bill at a minimum includes previous balance
carried over from last billing period, payment received, current charges and
activities, taxes, and total balance due. BPA supports the online and printed
presentment of balance forward bills.
5.3.2.2. Enhanced Template Assignment

Oracle Bill Presentment Architecture supports the use of source product specific
attributes as assignment criteria in template assignment rules. This new feature
allows the selection of attributes for the use of template assignment from the
following places
• Seeded header level content items of primary data source

• Header level flexfields of supplementary data source
5.3.2.3. Attachment Printing

Oracle Bill Presentment Architecture allows printing of PDF attachments with
the printed bill. For added security, the PDF attachments that are printed are
limited to those belonging to a specific document category designated in a profile
option.
5.3.2.4. Legal Entity

Oracle Bill Presentment Architecture supports the display of Legal Entity
information on online and printed bills. Users are able to include Legal Entity
specific attributes on all BPA templates.

Oracle Bill Presentment Architecture leverages Multi-Org Access Control to

allow the presentment of bills from multiple operating units via a single
responsibility.

5.4. Oracle Credit Management
5.4.1. Overview
Oracle Credit Management is the hub product for credit analysis and decisioning
throughout the Oracle E-Business Suite.
This release contains features that extend the functionality and integration among
products in the suite. It also provides the infrastructure to extend the data needed
to make informed credit decisions.
5.4.2. Features
5.4.2.1. Common Components for Leasing and Loan Applications

Many of the data entry pages needed to initiate a credit application for leases and
loans are available in Oracle Credit Management. In order to ensure a seamless
progression of application entry to decision, common page components available
in Oracle Credit Management have been incorporated in the lease and loan
applications. Entered information automatically flows to the credit case folder.
This eliminates the need for the user to enter the same data in multiple
applications and speeds the flow of information through the decision process.
This feature was first released in Oracle Credit Management Mini-pack D

(11i.OCM.D).
5.4.2.2. Enhancements to User-Defined Data in Credit Case Folders

Oracle Credit Management offers an extensive array of historical, system,
external and user entered data for credit reviews. The ability to create user-
defined data points for credit analysis and scoring has been enhanced to accept
SQL functions. SQL functions are automatically executed and resultant data is
loaded during credit case folder creation. This feature improves the user’s ability
to take advantage of automated credit decisioning since all necessary data is
present to calculate credit scores. Potential uses of this feature are:
• Lease application terms and conditions

• Third Party Content Provider information
• User-specific calculations, such as Days Sales Outstanding or financial ratios
(11i.OCM.D).
5.4.2.3. Multi-Period Financial Data Comparison

When you enter information on a credit application for use in credit analysis and
decisioning, a key criteria is the ability to compare the organization’s financial
data over several periods. Users are able to select from previously entered
periods and compare multiple periods of financial data to assess positive or
adverse trends.

(11i.OCM.D).
5.4.2.4. Credit Scoring Model Enhancements

With the addition of SQL function capability in defining additional data points,
scoring models take advantage of those data points to extend the power of the
scoring model. Scoring models can be created without assigning weighting
factors and raw data values can be passed as the actual score. This feature is
useful for those data points where the value itself is part of a score, such as Dun
& Bradstreet’s Paydex® Score.

(11i.OCM.D).
5.4.2.5. Credit Recommendation Enhancements

Credit recommendations often include additional tasks or ‘conditions’ that must
be met for the requested credit to be approved. Enhancements to the credit
recommendations include the ability to assign additional steps to be taken,
particularly in the case of a lease application. In addition, rejecting a request for
credit has been enhanced to provide reasons for the rejection and the ability for
rejectors to document options to negotiate a mutual outcome.

(11i.OCM.D).
5.4.2.6. Credit Decision Appeals Processing

This feature provides the functionality to allow credit applicants to resubmit
information when a credit rejection decision is made to improve their ability to
meet the debt obligation. This provides credit personnel with the ability to
satisfactorily manage their risk while providing an avenue to establish a stronger
customer relationship.

(11i.OCM.D).
5.4.2.7. Dynamic Credit Analyst Assignments

With the variety of rules that determine how credit reviews are assigned to credit
analysts, this feature enables the user to define their credit organization structure
and implement rules that automatically assign the appropriate employee to credit
requests and credit case folders.

(11i.OCM.D).
5.4.2.8. Automatic Assessments of Guarantors

Assessing the creditworthiness of customers can include structures by which the
debt obligation is reduced through participation of guarantors. However,
guarantors also carry credit risk. This feature automatically creates a case folder

for guarantors and enables the credit user to assess the creditworthiness of the
guarantor.

(11i.OCM.D).

5.5. Oracle Enterprise Performance Foundation
5.5.1. Overview
The Enterprise Performance Foundation is an integral part of the Release 12.0

Data Schema that supports analyzing and mining E-Business Suite data by
adding multi-dimensionality; date effective business rules, analytic functions;
audit and integrity features; and its own security administration to the data you
select.
The Enterprise Performance Foundation (EPF) is the evolution of the Oracle

Financial Data Manager used in earlier OFSA releases. This foundation will be
used to administer and maintain the new common data model and functional
components used across the CPM Applications and by other E-Business Suite
applications.
The Enterprise Performance Foundation (EPF) powers several industry-neutral

products such as the Financial Consolidation Hub, Enterprise Planning and
Budgeting, the Profitability Manager, as well as the Financials Services Industry-
specific, Oracle Transfer Pricing application.
5.5.2. Features
5.5.2.1. Oracle Release 12.0 Schema

By contrast with the former Oracle Financial Services Applications (OFSA)
common features, the EPF is in the Oracle Applications Release 12.0 schema, so
that EPF shares a database environment within the Oracle E-Business Suite, rich
in detail data that is invaluable for profitability analyses, planning and risk
management.
5.5.2.2. Enhanced Oracle General Ledger Integration

EPF can be configured and utilized to reflect Oracle General Ledger ledgers and
ledger sets, as well as associated metadata, including calendar definitions,
segment/dimension value sets and hierarchies, global value set combinations,
currency administration and historical currency exchange rates.
5.5.2.3. Shared, Reformatted Ledger Data

This release includes implementation of a new management ledger data table
designed to provide tighter integration with the Oracle Financial Applications
(Oracle FinApps). Replacing multiple individual ledger data storage tables
previously used by the OFSA applications, SEM Exchange (ABM) and Oracle
Financial Analyzer, and which were sourced from the Oracle General Ledger
(OGL) with separate integration programs, this new repository will serve as the
single source of truth for critical management ledger information across the
Oracle E-Business Suite. Data is sourced from Oracle General Ledger using a
single, centralized integration routine, eliminating the need for customers to
operate and maintain multiple integration programs.

The common data model currently supports the following Oracle E-Business
Suite applications: Oracle Profitability Manager, Oracle Transfer Pricing, Oracle
Enterprise Planning and Budgeting and Oracle Financial Consolidation Hub.
This provides a robust view of data across Oracle’s applications and ensures an
accurate and consistent source of data for use in analytical and financial
management applications.
5.5.2.4. Oracle Workflow Integration

Oracle Workflow supports the definition, automation and integration of approval
flows prior to promotion of new business rules in a production environment.
Workflow facilitates compliance with internal quality control and audit
requirements. Using approval states on Business Rules enables creation of rules
by many users, but restricts formal review and final approval to a pre-defined
number of authorized users.
5.5.2.5. Integration with Concurrent Manager

The Concurrent Manager in the Oracle E-Business Suite manages Business Rule
processing. All Oracle Applications processes are centrally managed and
executed through Oracle Concurrent Manager interfaces. Calculations may be
run one at a time, or users can assemble Request Sets with multiple concurrent
processes, taking advantage of the full functionality of the Oracle E-Business
Suite processing architecture. This replaces the functionality that Request Queue
served in OFSA 4.5.
5.5.2.6. Oracle Warehouse Builder Integration with Interface Tables

Release 12.0 includes components to allow users to define ETL maps and load
data into interface tables using Oracle Warehouse Builder (OWB). For dimension
members, the OWB structures also consolidates the information currently input
in multiple interface tables into a single table. Dimension, hierarchy and data
loaders may be used, as usual, to move the metadata and data from the interface
tables into dimension and fact tables.
5.5.2.7. Oracle Warehouse Builder Replaces Balance & Control

In Release 12.0, Oracle recommends the use of Oracle Warehouse Builder for
data cleansing and other ETL activities, replacing the Oracle Balance & Control
component of Oracle Financial Data Manager. The Cash Flow Edit routines
previously available in Oracle Balance & Control are now fully integrated within
Oracle Transfer Pricing.
5.5.2.8. New User Interfaces

Release 12.0 includes a new user interface for the Oracle Financial Services
applications. The products in the Oracle E-Business Suite have a common web
browser look and feel, making the interfaces more intuitive for users. As with
former OFSA releases, a user has a familiar application flow experience, which
reduces the cost of training when using multiple applications. With the
incorporation of E-Business Suite responsibilities, the release supports
predefined responsibilities granting security to application functions for different
groups of users. Clients can also create their own responsibilities, customizing
access to different application functionality components as appropriate for
different types of users.
5.5.2.9. Security and System Administration

5.5.2.9.1. E-Business Suite Responsibility-Based Security
The new features in this release include security based on precise user
responsibilities of the Oracle E-Business Suite. In addition to E-Business
Suite responsibilities, Security Folder features available in previous OFSA
releases have also been incorporated in Release 12.0. Security Folders are
used for storage of Business Rules, and are used to control and grant user
access to Business Rules that have been created within the defined security
folder. The combination of E-Business suite responsibilities and Security
Folders provide a powerful security system capable of meeting the security
needs of all users.
5.5.2.9.2. Shared Administration

EPF-based applications use a single facility to maintain meta-data required
by all applications. The specific administration functions include the
following:
Object Registration. The calculation engines that use the common data
model reference meta-data to determine how to process each specific
business object. The object registration feature provides a way to maintain
the meta-data related to tables, columns and views used within the
application.
Value Set Definition. Value sets are used to manage the list of values, or
domain, for each of the dimensions. Value Sets are defined at the Ledger
(Set of Books) level, providing the ability to use different lists of values for
different Ledgers within the same dimension.
Global Value Set Combinations. Similar to the chart of accounts in the
General Leger, Global Value Set Combinations (GVSC) are used to define
the specific value sets that are used by a ledger.
Dimension Administration. Additional meta-data related to display names
and column associations is also maintained as part of the shared
administration. These display names are fully multi-language (MLS)
enabled.
Dimension Members and Hierarchies. This feature provides the ability to
manage dimension attributes and levels, dimension members and dimension
hierarchies, based on the selected ledger and related global value set
combination.
The administration of these tasks is provided in a single location for all EPF-
based products. The ability to provide shared administration features
simplifies maintenance, and ensures consistency throughout the individual
applications.

5.5.2.10. User Defined Signage Methodologies
EPF users have the option to manage their Management Ledger table data based
on three different signage methodologies – Absolute Value, GAAP Standard, and
Reverse GAAP. The signage for all extended account type belonging to the same
standard account types (Asset, Liability, Expense, Revenue, Equity) is consistent.
The definition of these signage methodologies provides the ability to select the
one that is best suited to the individual customer, and their underlying reporting
and data analysis needs.
5.5.2.11. Configurable Home Page

When users log into Release 12.0 applications, they are taken to an application
level Home Page. Application level Home Pages automatically direct users to
Workflow notifications requiring their attention, and also may contain useful
links and messages that have been defined by system administrators. This feature
provides a convenient mechanism for communications between application
administrators and users, and timely response to critical Workflow notifications.
5.5.2.12. Tuning Options Administration User Interface

The EPF-based applications employ multiple Tuning Option features to facilitate
the timely completion of production processes. Performance tuning option
parameters used in application calculations may be defined based on general rule
types or by the individual Business Rule within the application. Release 12.0
includes a new user interface to assist in defining these tuning options
parameters, making the task easier and more efficient.
5.5.2.13. Rule Migration, Import and Export

Users generally define and test their business assumptions and methodologies in
a development environment prior to promoting them to a production
environment. EPF in Release 12.0 supports the business need to promote
development rules to production. Each process includes the following:
Migrate. The migration process performs an automatic export and import of a

selected Business Rule.
Export. The export process produces a file consisting of a copy of the Business
Rule selected. This file can be imported manually with the import procedure.
Import. The import process allows a user to select a previously exported

Business Rule version, and import it manually into the target database.
In addition, the Migrate/Import/Export process uses an open, XML-based format

for easy interoperability within the applications and environments.
5.5.2.14. Multi-Dimensional Data Model

The common data model used by the Enterprise Performance Foundation
provides 19 pre-defined dimensions, plus an additional 10 user defined
dimensions. The availability of these 29 dimensions supports the varied
modeling needs of any organization, and supports robust multi-dimensional

analysis and reporting. Users can configure the most appropriate dimensions
pertinent to their specific business needs. The 19 pre-defined dimensions are
listed below:
Analytic Dimensions
• Company Cost Center Org ID
• Product ID
• Channel ID
• Project ID
• Customer ID
• Geography ID
• Task ID
• Activity ID
• Cost Object ID
• Calendar Period ID
Data Management
• Source System Code
• Ledger ID
• Dataset Code
• Currency Code
Financial Characteristics
• Financial Element ID
• Natural Account ID
• Line Item ID
Financial Consolidation
• Intercompany ID
• Entity ID
New features are included in Release 12.0 for managing dimension members and
dimension member attributes, and for the creation and maintenance of hierarchies
built on top of those dimensions that are of a hierarchical nature.
Please see Terminology in Section 5.5 of this document for Dimension

definitions and related information.
5.5.2.15. Dimension Member Attributes

Release 12.0 includes a set of common, seeded dimension member attributes for
use within the applications. The common data model provides the ability to
define an unlimited number of user-defined attributes for each dimension. User
defined attributes allow organizations to categorize data for their specific analysis
and reporting needs.
5.5.2.16. Data Set Registration and Creation

In Release 12.0, data is identified by Datasets and Calendar Periods.

Datasets: Individual members of the Dataset Code dimension are referred to as
Datasets, which enable classification of data such as but not limited to budget,
actual or model statistics
Calendar Periods: Members of the Calendar Period ID dimension are referred to

as Calendar Periods. Calendar Periods are defined at implementation, and can be
defined on a daily, weekly, monthly, quarterly or any other time period basis.
The use of Data Sets and Calendar Periods provides great flexibility in the
selection of data for modeling and production processing. Administered with the
new dimension member and hierarchy management tools, the Dataset dimension
also allows testing and development of alternative scenario results, and
dimensional profitability measures on a ‘what-if’ basis prior to promotion to a
production environment.
5.5.2.17. Dataset Groups

In order to process a Business Rule in Release 12.0, users define the combination
of input and output Dataset Code dimension values to be used when the process
is run. A single Business Rule can use multiple ‘input datasets’ as inputs to
calculations, and write calculation results to a single ‘output dataset’. Dataset
groups provide a single definition of one or more input datasets and the desired
single output dataset to be used. This feature permits the creation of processing
results using any combination of actual results or forecast (budgeted) amounts as
inputs to the calculations.
The Dataset Group definition can incorporate references to data in Calendar

Periods that are either before or after the actual Calendar Period being processed
by a Business Rule. These “relative” offsets use period lead or lag specifications
in the rule definition, avoiding the need to incorporate specific Calendar Period
ID references in the Dataset Group definition as rules are run from one Calendar
Period to the next Calendar Period.
5.5.2.18. Business Rule Definition and Management

The basic building block of the Oracle Financial Services Applications is called
the “Business Rule”. Known as ‘IDs’ in earlier releases, Business Rules include
methodology and assumption definition rules, data processing rules, and data and
dimension sub-setting and organization rules known as Conditions and
Hierarchies.
Release 12.0 incorporates a standard Business Rule framework employed across

all Financial Services Applications and is designed to provide consistent rule
organization and behavior regardless of the application being used. This
framework includes several common interface and Business Rule management
components:
• Business Rule Selector
• Business Rule Page Flows
• Workflow-Based Rule Approvals
• Dependency Reporting
• Versioning
• User Level Application Preferences

A description of each of these components follows.
5.5.2.18.1. Business Rule Selector

The Business Rule Selector serves as the common launch point for creating,
updating and viewing Business Rule definitions, for initiating and monitoring
workflow approvals and status, and for exporting Business Rules for import
into other environments.
5.5.2.18.2. Business Rule Page Flows

Business Rules in Release 12.0 use common page flows for typical rule
based actions across the Enterprise Performance Foundation based
applications. Common interface flows are used for rule and version creation,
rule updates, viewing a rule, and rule duplication and deletion processes.
5.5.2.18.3. Workflow-Based Business Rule Approvals

Users manage the interaction of Business Rules and production level data
with a feature called Rule Approval. Rule Approval allows users to take
advantage of an embedded workflow process facilitating the review and
approval of Business Rules prior to their use in a production environment.
This feature controls data write access to production level data, and ensures
only those rules that are approved may write to production datasets. For
instance, users test rules before they are promoted to production, and this
ensures that “test” rules are never run in production until they are approved.
The additional Rule Approval function in Release 12.0 provides an added
layer of security when trying to maintain the quality of production level
calculation results, ensuring consistency and reliability of business critical
data.
5.5.2.18.4. Dependency Reporting

When managing Business Rules it is important to understand the inter-
relationships among Business Rules. Within the EPF-based Applications this
feature is called Rule Dependency. The Rule Dependency feature allows
users to specify a Business Rule, and then track all other dependent rules.
This ensures consistency of the calculated results, and supplies a way to
provide audit-ability of the reported measures.
5.5.2.18.5. Versioning
Users will be able to modify Business Rule assumptions over time by
creating new versions of a rule. Previously, if users wanted to modify a rule
from one period to the next while retaining a copy of rules used in production
cycles, they had to create physically separate rules using naming conventions
to tell them apart. In Release 12.0, Versioning allows users to alter business
assumptions over time while retaining definitions used in their production
process.
5.5.2.18.6. User Level Application Preferences

Release 12.0 includes several seeded application preferences designed to
assist users in the process of Business Rule creation and process submission.
These include:

Security Folder. The Security Folder user preference is the default value
when navigating to any Rule Selector or when creating a Business Rule.
Dataset Group. The Dataset Group user preference is the default value when
submitting an individual rule for processing from the Rule Selector
Ledger. The Ledger user preference is the default value when submitting an
individual rule for processing from the Rule Selector, as the default ledger in
the Data Inspector, and as the basis for the value set definition when
managing dimension members and hierarchies.
Calendar Period. The Calendar Period user preference is the default value
when submitting a rule version from the Rule Selector for processing.
Effective Date. The Effective Date user preference is the default when
submitting a rule for processing from the Rule Selector.
These preferences are saved for each individual user as a profile option at the
user level. Use of these saved parameters simplifies the modeling process by
letting the user set preferences once, and then re-use them for multiple tasks
within the application.
5.5.2.19. Conditions
A Condition is a Business Rule used to create the filtering criteria that determines
which information will be used in a calculation or view of data. Conditions use
advanced set logic definitions as well as hierarchies to define the required criteria
for processing rules. Conditions, like other Business Rules, support versioning
and effective dating.
Condition Business Rules can be shared by other types of Business Rules within
the same application or across different applications. This makes maintenance of
the system easier and more efficient in cases where the same filter criterion is
needed by multiple Business Rules.
5.5.2.20. Data Inspector

The Data Inspector in Release 12.0 lets users query, view and update fact table
data on an adhoc basis from within Release 12.0 EPF application interfaces. This
convenient feature enables users with appropriate security to more quickly view
and understand process inputs and drivers, as well as application process outputs
written to the system data tables. It also provides an easy way to make simple
changes to underlying data in a quick and efficient manner.
Note: Please note that the Data Inspector allows the management of data on a
row-by-row basis. It does not provide the ability to perform bulk updates. In
addition, Data Inspector does not have versions.
5.5.2.21. Auditing and Data Integrity

Release 12.0 includes several features designed to preserve the overall integrity
of fact table data while making it easier for users to audit calculation output and
identify the Business Rules that created the results. These features, which are
discussed below, include:

• Production Datasets
• Process Locking
• Rule Auditing
• Effective Dating & Versioning
5.5.2.22. Production Datasets

Production datasets provide a mechanism for identifying data used as inputs to
calculations or produced as outputs by Business Rules in a production
environment, and distinguish such production data from data used or created in
testing and validation or analytical what-if processes. All data loaded into the
system or created by application processing is stored in a dataset that is classified
as either a production dataset or a non-production dataset. Production datasets
are automatically restricted to receiving calculation results only from approved
rules. This feature controls write access to the production level data and ensures
only those rules that are approved may write to production datasets. Users may
test rules before they are promoted to production, and this ensures that those
“test” rules are never run in production until they are approved.
5.5.2.23. Process Locking

Users require a high degree of data integrity in their analytical management
systems. In order to preserve the integrity between calculation results and the
rules used to generate those results, a feature called ‘Process Locking’ is
provided in Release 12.0. This feature preserves the integrity of the business
assumptions used to generate results in the production environment. Once a rule
has been executed, it is ‘Process Locked’ and the results must be removed before
that rule may be changed, thus ensuring that the connections between the rule and
production calculation results are preserved for audit purposes.
5.5.2.24. Rule Auditing

A powerful audit facility is provided in Release 12.0 to view rule data sources,
drivers and contribution amounts. This audit feature provides the ability to view
the results of Business Rules and to trace calculation results back to the Business
Rules that created those results. This feature makes it easier for users to review
and validate Business Rule processing results in a test environment, and provides
users with a mechanism for viewing definitions and inputs used to create
performance measure components.
5.5.2.25. Effective Dating & Versioning

Retention of rule definitions used in production processes is a requirement from
an audit trail perspective as well as to support new rule auditing functionality
included in the release. When users create versions of a Business Rule, they
specify start dates and end dates covering the time periods for which the Business
Rule will be processed. Validations are automatically performed in the creation
and update processes to ensure that versions of a rule do not have overlapping
effective date ranges. Provided as part of the previously mentioned rule
versioning functionality, this ‘Effective Dating’ mechanism is also used to
determine which version of Business rule was actually used to create processing
results for any given time period.

5.5.2.26. Seeded Reports
A number of seeded reports produced with the Oracle Discoverer reporting
application have been included in this release of the Oracle Enterprise
Performance Foundation. For full details please refer to the User Guide.
5.5.2.27. Integration with Web ADI

This feature provides the ability to load dimension members or hierarchies via a
spreadsheet interface in the Dimension and Hierarchy Manager (DHM). The
Web ADI feature utilizes the dimension member loader internally. This feature
improves the ease of use in relation to the data loading process by giving users a
simple spreadsheet interface to load and update multiple dimension members in
one step.
5.5.2.28. Functional Dimension Definition

This feature allows the users to define extra metadata that provides “functional”
names for a given dimension. For example, shipping address may be defined as
User Dimension1, but point to column “Purchase Address” on one table, and
“Ship Address” on another table. With the functional dimension definition, users
can refer to “Shipping Address” and determine the appropriate column on each
table. For this release, this feature will be used exclusively by users of Oracle
Enterprise Planning and Budgeting to define the extra metadata specific to their
needs.
5.5.2.29. Loader Rules

In release 12.0, users are able to load multiple periods of data into fact tables, as
well as combine dimension, hierarchy and data loads into a single processing run
using loader rules. This feature improves user productivity in loading
dimensions, hierarchies and data by providing a wrapper around the existing
functionality. The loader rules also automatically determine the appropriate
execution mode to pass to the existing concurrent programs, so the user does not
need to manually determine if they should be performing snapshot, incremental
or error reprocessing.
5.5.2.30. Client Data Table Loader Replacement Mode

This feature provides a new execution mode that allows users to do a simple
replacement of data in any of the client data tables, without performing an
“undo” of a previous run. Thus, if a set of data loaded into a client data table is
incorrect, users may simply reload and replace the existing data. This execution
mode is available for all responsibilities that include the Client Data Table
Loader as part of the assigned program request group. Client data is either
replaced or new data is added; no data is deleted as part of this process. This
feature also includes a new business event to which users may subscribe for
notifications when a replacement mode load completes successfully.
5.5.2.31. Fact Table Dimension Member Error Report

This feature provides the ability to scan a fact interface table prior to calling data
loaders to produce a report of potential dimension member errors during the load

process. This report may be defined on any client data table, including user-
defined tables. Using this feature, the users have the ability to track and fix
multiple errors before calling the data loader.
5.5.3. Terminology
Term Definition
Activity ID Activity ID will be a composite dimension in the 12.0 Release comprised

of the Task ID plus one or more additional optional dimensions. An
activity will be defined as a repeatable action performed within an
organization. Activities will be accomplished on a routine basis.
Application Preferences Accessible via the Application Preferences link at the top right of all
application interfaces, application preferences will allow users to specify
session defaults for Security Folder, Ledger, Dataset Group, Calendar
Period and Effective Date. Application Preferences will generally
replace the Configuration ID from previous OFSA releases.
Business Rule The basic building block of the 12.0 Release of Profitability Manager
will be called the ‘Business Rule’. Business Rules will include
Methodology and assumption definition rules, Data processing rules, and
Data and dimension subsetting and organization rules known as
Conditions and Hierarchies. Business Rules will replace ‘IDs’ from
previous OFSA releases.
Calendar Period Calendar Period will be the Profitability Manager 12.0 Release
representation of Time Periods. Calendar Periods will have start dates
and end dates that are defined at implementation, and can represent a
single day, a month, a quarter, a year, etc. Calendar Period will replace
‘As Of Date’ from previous OFSA releases.
Channel ID A dimension that will indicate the Distribution and Delivery Channel.
Company Cost Center Org ID The Company Cost Center Org ID will be the Organizational Unit
dimension, and will typically be defined as the concatenation of
Company and Cost Center values from the General Ledger. This
dimension will correspond to the seeded Organizational Unit ID
dimension in previous OFSA releases.
Condition A Condition will be a Profitability Manager Business Rule where users
will define filtering criteria to be used in processing. Conditions will
replace Data, Group and Tree filters from previous OFSA releases.
Cost Object A Cost Object will be any product, service, customer, contract, project,
process, or other work unit for which a separate cost measurement is
desired.
Currency Code The dimension that will designate the ISO Currency Code value for
Entered Currency balance amounts.
Customer ID The Customer ID dimension will identify individual customers
associated with balances or transactions.
Customer Account Tables Customer Account Tables will store data on individual customer
accounts. Customer Account Tables will replace ‘Instrument Tables’
from previous OFSA releases
Data Inspector The Data Inspector will be a type of Business Rule. The Data Inspector
will provide users with a mechanism for displaying and modifying client
data stored in the database and will allow data entry into client data
objects. The Data Inspector Rule will replace the Data Verification ID
from previous OFSA releases

Term Definition
Dataset Code A Dataset will be a ‘bucket’ or grouping of statistical and/or monetary

data that is manually entered, imported, or created by a calculation.
Dataset Code will be a dimension. Dataset dimension members will have
attributes indicating whether a dataset represents budget, actual or
encumbrance data, and whether the data identified by a specific
dimension member represents production data, etc.
Dataset Group The Dataset Group will be a Business Rule used to define the
combination of dataset dimension input value(s) and the target output
value to be used when a process is run. When processing a Business
Rule, users must specify the Dataset dimension members to use as inputs
to a process as well as what dimension member to use when writing
calculation results.
Dimension A Dimension will be a member set, also known as a ‘List of Values’
(LOV), identified by a code, with a translatable name and description.
This replaces ‘Leaf Field’ from previous OFSA releases.
Dimension, Simple A Simple Dimension will be a dimension that serves only as a list of
values. Simple dimensions will not have attributes, nor will they have
hierarchies. Simple dimensions (like all Dimensions) may serve as
attributes of other dimensions.
Dimension, Attributed An Attributed Dimension will be a dimension whose members may have
other properties or qualifiers. These properties/qualifiers will be known
as ‘dimension attributes’. Note that while Attributed Dimensions may
also have hierarchies, they will not be required to do so. Certain
Attributed Dimensions may not have any hierarchies (examples – Ledger
dimension, Financial Element dimension).
Dimension Member The values used to populate dimension columns in
account/transaction/statistical tables will be referred to as ‘Dimension
Members’. Such values will represent the individual organizations,
distribution channels, products, etc., of which each dimension is
comprised. Both ‘lowest level’ and ‘node level’ values will be
considered to be Dimension Members.
Dimension Attributes A dimension attribute will be a property or qualifier that further
describes a dimension member. An attribute may be anything, such as a
Date, a number or a character string. For example, the ‘Geography’
dimension may have an attribute ‘Population’ that will designate how
many people live in that area. Each member of the Geography
dimension therefore will have an associated population. The Common
Data Model will consider Dimension Attributes to be a completely
separate concept from Dimension Identifiers (described below).
Dimension Attributes will replace ‘Leaf Setup’ from previous OFSA
releases.
Dimension Hierarchy Rule Dimension Hierarchy Rules will be Business Rules. A hierarchy
definition is a structure of dimension members organized by parent/child
relationships. Users will define hierarchical structures for analytical
dimensions for use in processing and reporting across the CPM
applications. Dimension Hierarchy Rules will replace the ‘Tree Rollup
ID’ from previous OFSA releases.
Effective Date When some types of Business Rules are being defined, users will specify
other dependent Business Rules, such as a Condition Rule or Hierarchy
Rule, to be used when the Rule being defined is processed. In this
circumstance, the Effective Date will be used to identify which Rule
Version of the dependent Rules to use when submitting the main rule for
processing from the Rule Selector..

Term Definition
Entered Currency The Entered Currency will be the currency in which individual source
transactions and account balances are denominated.
Entity ID The Entity ID dimension will be used in consolidation and can represent
legal and/or other types of entities.
FEM Balances The new-shared ledger data table will store GL data and certain types of
application processing output. The FEM Balances table will replace the
‘Ledger Stat’ table from previous OFSA releases.
Financial Element ID The Financial Element ID dimension will indicate the type of data
represented by a given row in the management ledger table (FEM
Balances), such as Average Balance, Ending Balance, Average Rate, etc.
This dimension will be the same as the Financial Element ID Leaf Field
in the 4.5 OFSA release.
Functional Currency The Functional Currency will be the principal currency used to record
transactions and maintain accounting data within Multiple Reporting
Currencies. The functional currency will usually be the currency in
which users perform most of their business transactions. Users will
specify the functional currency at the Set of Books level.
Geography ID The Geography ID dimension will indicate the Geographic location of an
account or measure. This dimension will replace the Geographic
Location Code in previous OFSA releases.
Global Value Set Combinations Global Value Set Combinations (GVSCs) will be related to the chart of
accounts in the Oracle General Ledger, and will specify the combination
of individual dimension value sets that will be utilized by a Ledger (Set
of Books).
Hierarchy A hierarchy definition will be a structure of dimension members
organized by parent/child relationships, for a designated effective date
range. ‘Hierarchy definition’ is synonymous with ‘hierarchy version’, in
that it is one instance of the hierarchy.
Intercompany ID The Intercompany ID dimension will be a dimension used to track inter-
company charges and payments. The dimension will be sourced from
the Company Cost Center Org ID dimension (meaning it will have the
same List of Values as the Company Cost Center Org ID dimension).
Ledger ID The Ledger ID dimension will replace the Set of Books leaf field in
previous OFSA releases.
Line Item ID The Line Item ID dimension will be used to summarize or further define
a set of accounts and or statistics. In addition, the Line Item ID
dimension will be used when defining Business Rule assumptions in
Oracle Transfer Pricing.
List of Values (LOV) The list of the available values in a column or a dimension. Can be
displayed in any format (drop down list box, combo box, etc.). Can be
applied to any related column.
Management Ledger Refers to the 12.0 release FEM_BALANCES table, which will replace
the Ledger_Stat table in previous OFSA releases.
Mapping Rule Mapping Rules will provide the ability to move or allocate data amongst
or between different dimension values. Mapping Rules will replace
‘Allocation IDs’ in previous OFSA releases.
Natural Account ID The Natural Account ID dimension will be the representation of General
Ledger account, and will be used to identify the accounting treatment of
data (Revenue, Expense, Asset, Liability, Equity). This dimension will
replace the seeded GL_ACCOUNT_ID Leaf Field in previous OFSA
releases.
Product ID The Product ID dimension will be the representation of an individual
product or product group, and will generally describe the items and
services that a company provides to its customers.

Term Definition
Project ID The Project ID dimension will be used to track data by individual

projects. For example, Oracle likes to track Consultant operating
expenses by individual customer implementation projects that the
Consultants are working on.
Request A Request will be a Concurrent Manager mechanism for submission of a
single process job.
Request Set A Request Set will be a Concurrent Manager mechanism for submission
of job ‘batches’. Together with Rule Sets, Request Sets will replace the
‘Batch ID’ in previous OFSA releases.
Responsibility Security Assignments made to users that specify which applications, data
and functions a user will be able to access.
Rule Audit Rule Audit refers to a new audit facility that will be provided to view
Business Rule data sources, drivers and contribution amounts. The
feature will provide the ability to view Business Rule processing results
and to trace calculation results back to the Business Rules that created
them.
Rule Selector The Rule Selector will be a common interface across CPM applications,
and will serve as a launch pad for Business Rule related actions,
including rule create, update, view, delete, duplicate, export, migrate and
submit for approval activities.
Rule Set The Rule Set will be a new feature that will provide the ability to group,
sequence and launch a collection of Mapping Rules in a batch-like mode.
Together with Request Sets, this will replace ‘Batch ID’ ifrom previous
OFSA releases.
Rule Version A Rule Version will store the definitional content of a Business Rule. A
given Business Rule can have multiple effective dated versions.
Security Folder Security Folders will be containers used for storage of Business Rules,
and will be used to control and grant user access to rules created within
the defined security folder. Replaces ‘Folder’ from previous OFSA
releases.
Signage Methodology This release will provide three new data signage options to employ
when loading or creating data in the Management Ledger table –
Absolute Value, GAAP Standard and Reverse GAAP.
The Absolute Value method will correspond to the typical treatment,
where all balance sheet and income statement account data (excluding
contra accounts) is loaded into the database with positive signage.
The GAAP Standard options will load data with normal debit (positive)
and credit (negative) balance signage, and the Reverse GAAP option will
reverse debit and credit balance signage.
Source System Code Source System Code will be a dimension representing the source system
from which data originated (an individual record in the database). For
example, this code can represent a General Ledger system for ledger data
loads, or an individual CPM application for rows created by that
application.
Task ID The Task ID dimension will describe the type of work performed in a
process. Tasks will usually be combined with the Company Cost Center
Org ID dimension to show how the same task is performed across
multiple departments.
Value Set Related to the chart of accounts in the Oracle General Ledger, a Value
Set will be a list of dimension members identified for use in a dimension
at the Ledger or Set of Books level.

5.6. Oracle Enterprise Planning and Budgeting
5.6.1. Overview
Oracle Enterprise Planning and Budgeting controls the business processes of

planning, budgeting, forecasting, monitoring, and analysis, integrating
performance management with personal accountability.
5.6.2. Features
5.6.2.1. Usability Enhancements

5.6.2.1.1. Import Budgets from Microsoft Excel
Worksheets can be exported to Microsoft Excel with tracking enabled, and
then imported back into Enterprise Planning and Budgeting. This allows the
user to work on a budget offline in Microsoft Excel, but still provides the
central control of target validation and the approval mechanism.
5.6.2.1.2. Professional Quality Reporting

Briefing books containing multiple reports with text commentary and
pictures can be automatically published with the latest data to specific users
as part of the business process. This allows, for example, the budget book to
be updated and automatically distributed once the budget numbers have been
finalized.
5.6.2.1.3. Budgeting in Multiple Currencies

Currency conversion rules and strategies can be managed centrally while still
allowing individual analysts to choose whether to enter budgets in multiple
currencies or a single currency. Currency conversion is automatic on
consolidation up the organization.
5.6.2.1.4. Additional Calculation Templates

The conditional If…Then…Else template allows tailoring of the business
model based on the division or region. The Days Outstanding template can
be used to track and manage the day’s sales outstanding or inventory turns.
Other enhancements allow multi-step calculations to be created in a single
step.
This feature was first released in Oracle Enterprise Planning and Budgeting
Mini-pack B (11i.ZPB.B).
5.6.2.2. Scalability Enhancements

5.6.2.2.1. Improved Security Management
Access to a view can be automatically restricted or relaxed as part of the
business process, for example during the month end close. Security API’s
allow programmatic updating of data ownership, read access, write access,

and metadata scope to support large and frequent changes to user access and
control.
5.6.2.2.2. Business Area

Business areas allow the business processes and user communities of discrete
operations to be managed separately. Multiple sets of books that share the
same chart of accounts can be included in the same business area; each chart
of accounts can reside in its own business area. By choosing what to include
in a business area, different versions of hierarchies can be tracked separately.
5.6.2.2.3. Business Process Management

Additional options when defining the business process rules support
organizational complexity, with enhancements for value-based hierarchies,
varying Line Item dimensionality, loading pre-solved data, and aggregation
up the Line Item hierarchy. A new API allows you to initiate a business
process programmatically.
5.6.2.2.4. SQL Access to Shared Data

Integration of planning data with other systems, such as secure operational
defense systems, has been enabled with the exposure of a SQL metadata
layer on top of the shared data. This layer can also be used to write data back
to the Enterprise Performance Foundation.
This feature was first released in Oracle Enterprise Planning and Budgeting
Mini-pack B (11i.ZPB.B).

5.7. Oracle Financial Consolidation Hub – New Product
5.7.1. Overview
Oracle Financial Consolidation Hub is a new product with this release.
Oracle Financial Consolidation Hub integrates data from disparate financial

systems to perform one-touch statutory and management consolidation. Oracle
Financial Consolidation Hub is a key component of Oracle Corporate
Performance Management - a comprehensive solution for improving
performance across all facets of your business. Unlike many solutions that stand
apart from your transaction systems and require additional software, hardware,
implementation and integration, Oracle Corporate Performance Management is
core to the Oracle E-Business Suite – one solution, one data model, one view of
your business.
5.7.2. Features
5.7.2.1. Enterprise View

Oracle Financial Consolidation Hub creates an enterprise view of the firm's
financial position by integrating multiple subsidiaries and investments from a
variety of countries with disparate accounting systems, ownership structures,
charts of accounts, and currencies. Optimized for both statutory and management
requirements, Oracle Financial Consolidation Hub provides a foundation to
establish and evaluate enterprise business strategy, allowing the finance
organization to base planning, forecasting, and analysis on accurate, timely,
corporate-level information.
5.7.2.2. Unity of Statutory and Management Results

Oracle Financial Consolidation Hub enables users to perform both legal and
management consolidation within a single system, allowing you to leverage a
common tool for both purposes and ensuring that your management numbers will
always reconcile with your legal results. The same set of consolidated financial
information supports multiple perspectives, satisfying the needs of a wide range
of users such as a general manager responsible for a group of products, a
country-specific controller responsible for the finances of a geographic region, or
a corporate controller responsible for fulfilling federal regulatory requirements.
5.7.2.3. Consolidation Versatility

Oracle Financial Consolidation Hub enables users to consolidate from any
system using spreadsheet-based loaders, or open interfaces. You can submit data
from any source, on any frequency, with integrated transformation and
validation. Information is automatically validated and standardized to a common
set of values, while providing complete audit trails from consolidated totals to
original source balances.

5.7.2.4. Entire Consolidation Cycle Monitored
With Oracle Financial Consolidation Hub, users are able to grant as much
autonomy as deemed appropriate to your subsidiaries and affiliates, while resting
assured that Oracle's software will bring everything together in a consistent,
rational way. Each subsidiary can submit its subconsolidation independently, and
the system will ensure that all information is consolidated in accordance with
corporate standards and practices.
5.7.2.5. Automated Workflow and Exception Handling

Oracle Financial Consolidation Hub ensures that the appropriate people are kept
well informed of situations that require their attention, such as an intercompany
mismatch or an incremental data submission. Proactive notifications ensure that
you can close your books in an orderly fashion rather than having to put out fires
during the critical last few days of the period.
5.7.2.6. Dynamic Ownership Structures

Oracle Financial Consolidation Hub tracks your acquisitions and disposals and
updates your consolidation hierarchies and intercompany relationships
automatically. It generates the appropriate elimination entries to handle goodwill,
investment in subsidiary, subsidiary equity and pre-acquisition profitability, as
well as any other necessary calculations. Acquisition and disposal transactions
are date effective, so you can always view your consolidation hierarchies and
consolidated results at any point in time.
5.7.2.7. Analytical Reporting Capabilities

Oracle Financial Consolidation Hub enables finance and business managers to
report and analyze across multiple business dimensions. You can perform on-the-
fly inquiries, explore cause and effect, and perform what-if analysis, via reports
and graphs. Reports can be shared with other people in the organization without
the risk of violating security rules because Financial Consolidation Hub
automatically filters the data displayed based on the recipient's security access.
5.7.2.8. Audit Entries from Every Stage of Consolidation

Oracle Financial Consolidation Hub enables you to audit entries from every stage
of the consolidation process for every subconsolidation, subsidiary, and affiliate
within your enterprise. Consistent information is accessible by all authorized
users involved in the consolidation.
5.7.2.9. Accessibility of Complete Consolidation History

Oracle Financial Consolidation Hub automatically archives the results from each
consolidation submission, allowing you to see the evolution of your consolidated
balances.
5.7.2.10. Best Practices Automated

Oracle Financial Consolidation Hub enables you to automate as much of the
consolidation process as you choose, from the initial data submission to final

reporting and analysis. A simple, extensible framework allows you to tailor the
steps in your consolidation cycle, whether the same process should be applied
across your entire hierarchy or whether special procedures are necessary for
different sub-consolidations. This allows you to consistently codify standard and
repeatable business processes, which reduces manual intervention and minimizes
opportunities for error and misstatement.
5.7.2.11. Complex Calculations and Eliminations Handled

Oracle Financial Consolidation Hub supports complex ownership structures and
automatically applies the proper consolidation methods and eliminations. Rules
for automating eliminations and adjustments are configured through a simple
user interface. The results of each consolidation rule are available for
confirmation and auditing at every level and for every subsidiary.
5.7.2.12. Global Consolidation Requirements Managed

Oracle Financial Consolidation Hub's flexible rule capabilities let you reflect the
different standards that govern your international operations. Additionally,
Financial Consolidation Hub provides support for foreign currency handling
procedures in strict accordance with FAS 52 and IAS 21.
5.7.2.13. Internal Controls Manager Integration

Oracle Financial Consolidation Hub is fully integrated with Oracle Internal
Controls Manager. Internal Controls Manager enables companies to document,
test, monitor, and certify ongoing compliance with Sarbanes-Oxley Section 302
and 404 as well as other key compliance-related legislation. It provides the vital
link between business processes and the affected financial statements. The
integration between the two products allows you to review and assess the
adequacy of controls in your enterprise in conjunction with your consolidation
process.
This feature was first released in Oracle Financial Consolidation Hub Mini-pack
D (11i.GCS.D).
5.7.2.14. Excel Add-in and Oracle General Ledger Drilldown

Oracle Financial Consolidation Hub provides a convenient spreadsheet interface
on top of the analytical reporting capabilities of Oracle 9i and 10g. You can slice
and dice your consolidated results in Excel, taking advantage of familiar Excel
formatting and calculations, while maintaining a live link to the consolidated
results in your database. From Excel you can also drill down to your operational
data, and if you are using Oracle General Ledger, you can drill into General
Ledger's Account Analysis and Drilldown to view journal details and the
underlying subledger transactions. You can also drill to General Ledger from the
consolidation trial balance report, data preparation report, and intercompany
matching report. This feature leverages the Oracle XML Publisher technology.
D (11i.GCS.D).

5.7.2.15. Concurrent Programs for Reporting
Oracle Financial Consolidation Hub provides the following new reports:
• The intercompany matching report helps you reconcile discrepancies

between the two parties in intercompany transactions
• The value mappings report helps you identify any values in your local charts
of accounts which have not been mapped to your consolidation chart of
accounts
• The hierarchy listing report shows you the hierarchical structure of an

enterprise.
D (11i.GCS.D).
5.7.2.16. Line Item Intercompany Maps

Users can map line items to members in the intercompany dimensions. This is
convenient when you use specific line items to keep track of intercompany
transactions among your subsidiaries. During consolidation intercompany
transactions are then automatically eliminated according to the intercompany
rules that you define.
D (11i.GCS.D).
5.7.3. Terminology
Term Definition
Eliminations The process of preparing consolidated financial statements

involves more than the simple aggregation of balances
between a parent entity and its children. Entries for
procedures such as the removal of intercompany activity are
required and are referred to as eliminations.

5.8. Oracle Financials for Asia Pacific
5.8.1. Overview
There are a number of Globalization features that provide functionality to

manage financial requirements for specific countries or groups of
countries/regions of the world. This section covers the Globalization features that
are available for Asia Pacific.
5.8.2. Features
5.8.2.1. Korean Withholding Tax

You can setup, calculate, and report on withholding taxes that are applied to
certain types of income payments to suppliers. This feature has been updated to
uptake the new Legal Entity model, Multi-Org Access Control and Payables’
Invoice Lines. Those reports can be run both from legal (passing legal entity as
parameter) or business (passing OU as parameter) perspectives.
5.8.2.2. Taiwan Transaction Numbering

To meet the Government Uniform Invoice requirements, you can apply
government issued invoice numbers to invoices so that company revenue can be
tracked. This feature has been updated to uptake the new Legal Entity model,
new Ledger model and Payables’ Invoice Lines. The setup step to associate
Transaction Batch Sources with Transaction Batch Types is no longer needed in
this release.
5.8.2.3. Asia Pacific Reports

Country specific reports to support tax reporting and other functionality are
provided in a number of countries and these have been converted to Oracle XML
Publisher templates with underlying extracts.

5.8.2.5. Legal Entity Architecture

Legal Entity architecture, which is new in this release, provides users with the
ability to model an enterprise’s legal organizational structure and define rules and

attributes specific to legal entities. With adoption of the Legal Entity architecture
in transactions such as in Oracle Payables, many of the globalization features,
such as the Korean Withholding feature, now use the context of legal entities for
statutory and other reporting.

5.9. Oracle Financials for EMEA
5.9.1. Overview
Oracle Globalizations provides a single, seamless solution to allow organizations

to compete globally, while managing their business locally.
In this release, VAT Reporting for EMEA has been re-engineered to allow
current localized features to become available for all EMEA customers. This
enables users to use Tax Calendars, Tax Box Allocations and Preliminary &
Final reporting.
5.9.2. Features
5.9.2.1. EMEA VAT Reporting

All existing Tax Reports have been converted to XML Publisher templates with
underlying extracts being consolidated into the functional classifications of
Audit, Journal, Turnover and Summary reports.
Tax Calendars and Periods have been defined and used to control VAT
Processing and report submission.
Tax Boxes relating to the Tax Authorities specifications have been defined and
assigned to various tax attributes. VAT Reports allocate transactions according to
the tax box definitions and provide information grouped as required by the local
Tax Authorities.
Preliminary reporting allows a report to be run a number of times in order to

cater for transaction amendments. Final reporting prevents a transaction from
being reported again and supports report auditing. The feature also supports
correction reporting.
5.9.2.2. EMEA Country Specific Reports

The following reports are included in this release:
• VAT Reconciliation Detail Final Report, Austria
• VAT Reconciliation Summary Final Report, Austria
• AR Tax Register Report, Israel
• VAT AP Detailed Report, Israel
• Vendor/Incoming Invoice Tax Report, Croatia
• Customer/Outgoing Invoice Tax Report, Croatia
• Israeli VAT File Generation 835 NOT Related
• Israeli VAT File Generation 835 Related
• Israeli VAT Summary Report to Tax Authorities
• Israel - Withholding Tax File to the Tax Authority
• Israel - Withholding Tax – Summary/Detail Report
• Israel - Withholding Tax – Reconcile Report
• Israel - Withholding Tax – Annual certificates to Vendors

5.10. Oracle Financials for India
5.10.1. Overview
Oracle Financials for India provides clients in India with a comprehensive

solution to comply with the India specific tax requirements as specified by
Central Excise, Customs, Sales Tax and VAT, and Tax Deduction at Source
(TDS)(levied under Income Tax Act). Oracle Financials for India also provides
valuable information that can be used for statutory and management reporting.
Oracle Financials for India uses its own tax engine, for handling taxes applicable
across ‘Procure to Pay’ and ‘Order to Cash’ transactions.
In Oracle Financials for India, taxes are defaulted based on the pre-determined
setup (Tax Defaulting). Tax amounts are calculated based on precedence such as
transaction base value, tax on tax, or assessable value as specified by tax
authority (Tax Calculation). The Tax Amount is considered for inventory
valuation, recoverability and accounting based on the pre-determined
recoverability and accounting rules (Tax Accounting and Recoverability). Details
of recoverable tax amount are recorded as part of the repository (Tax Recording).
This information can further be used to calculate the final tax liability arising on
settlement at the end of the tax period (Tax Settlement) and for statutory
reporting (Tax Reporting).
5.10.2. Features
5.10.2.1. CENVAT Rules 2004 Changes

Credit of taxes paid on inputs and input services were allowed in Central Excise
and Service Tax regimes respectively. The Central Government has notified the
new CENVAT Credit Rules, 2004 that allows cross regime credit of taxes paid.
For example, Credit of Service Tax paid on input services will be allowed to be
set-off against the Excise liability arising on production of goods, and vice-versa.
This is a change in the existing statutory requirement. The changes came into
effect from 10-September-2004.
Education Cess is an additional tax brought in by Union Budget 2004. It works

as a surcharge on its related primary tax. Education Cess has to be treated similar
to the related primary tax
Following are the features that are new with the Service Tax enhancement:
• Service Tax Registration
• Defaulting of Taxes on Outside Processing Transactions
• Tax defaulting for Bill only invoices created for Sale of Services
• Service Tax Accounting
• Distribution of Input Service Tax Credit
• Maintenance of Registers for input services
• Periodic Reports/Returns

• Enhancements to cover Education Cess on taxes
This feature was first released in standalone patch # 4239736.
5.10.2.2. Tax Deducted at Source (TDS) Thresholds

Amendments brought in by Union budget 2004 mandate applicability of TDS for
a supplier invoice, either when the Total Invoice amounts for the financial year
exceeds the Cumulative Invoice Amount Threshold or when a Invoice amount
exceeds the Single Invoice amount threshold.
The amendment to section 194 C of the Income Tax Act requires tracking of the
threshold on single invoice and cumulative invoice basis.
Currently, Oracle Financials for India supports only one threshold limit (either
single invoice or aggregate of all invoices) per section per Supplier Site.
Further, the surcharge on a TDS Rate can be specified while defining TDS Tax
Code. Whereas a surcharge would be applicable only when the purchases made
from the Supplier Site exceeds the specified Threshold limit, Oracle Financials
for India does not handle such cases requiring selective applicability of
surcharge, based on the Threshold limits.
The Maintaining TDS Threshold feature has been extended to uptake tracking
requirement based on multiple thresholds.
5.10.2.3. Value Added Tax (VAT)

VAT replaced all the state sales taxes in India on April 01, 2005. Under VAT
Regime, an organization can avail credit arising from Input Tax paid on Purchase
of goods. Thus, tax liability shall be only on Value Addition at each stage of Sale
made within the State.
Oracle Financials for India caters to VAT requirements. This enhancement

includes the following features:
• Define new Taxes required for the VAT regime
• Provision to define Value Added Tax Regime
• Provision to define VAT Registration
• Provision to assign Organizations
• Provision to define VAT Authority
• Provision to define VAT Invoice sequence
• Provision to define Item Classification
• Provision to define VAT Claim Terms
• Defaulting & Calculation of VAT Taxes on purchase and sales transactions
• Provision to define VAT Assessable Price Lists and use them in calculating
VAT taxes on Purchase and Sales transactions
• Facility to defer recovery of VAT Taxes
• Facility to Claim VAT while creating Receipt
• Provision to Unclaim non-recoverable VAT Taxes
• Provision to stagger VAT Recovery on purchase of Capital Goods

• Provision to generate VAT Invoices on Sale transactions
• Repository to record Input/Output VAT Tax details for each transaction
• Feature to create VAT adjustment entries
• Feature to settle VAT Taxes
5.10.2.4. DFF Elimination

In previous releases, Oracle Financials for India utilised 11 context specific
Descriptive Flexfields (DFF’s) to achieve certain tax-related functionality. In
release 12.0, these DFF contexts have been eliminated by having alternative
setup screens or by using Global Descriptive Flexfields to handle these
requirements.

Oracle Financials for India span base application modules such as Oracle
Purchasing,, Oracle Payables, Oracle Order Management, Oracle Receivables
etc. The transactions carried out in these modules are secured based on the
MOAC security model. Oracle Financials for India follows the same model.
5.10.2.6. AP Invoice Lines

Oracle Payables has incorporated Invoice Lines into the invoice model. Invoice
Lines is a key architectural change, which enables Oracle Payables to better
model the paper or electronic business document yet maintain key features that
exist at the invoice distributions level.

subledger accounting journals will be available for analytics, auditing, and
reporting. They are summarized, transferred, imported and posted to Oracle
General Ledger. For more details, please see the Oracle Subledger Accounting
section of this document.
Oracle Financials for India users need to set E-Business Tax for ‘Order to Cash’
flow and Receivables transactions.

5.10.2.8. OPM Inventory Convergence
OPM Inventory has been merged into Discrete Inventory in R12.0 and specific
functionality related to OPM Inventory has been made available in the Discrete
Inventory module. This impacts products such as Order Management,
Purchasing, Inventory, Costing etc., as well as Oracle Financials for India.
Oracle Financials for India includes functionality for Excise Register

maintenance and costing in OPM inventory. Changes made in these products
impacts the functionality provided by Oracle Financials for India at setup and
transaction level. Oracle Financials for India has been enhanced to uptake these
changes in setup and transactions.
5.10.3. Terminology
Term Definition
Service Tax Service tax is an indirect federal tax on specific services.

The responsibility of payment of the tax is on the
service provider.
Central Excise Central Excise Duty in India is generally defined as a
tax on articles produced or manufactured in the country
that administers the taxes and is intended for
consumption within the same country.
CENVAT Taxes imposed under Service Tax and Central Excise
Regime that the service provider / manufacturer is
allowed to take credit for.
Education Cess Surcharge Tax on taxes levied by Central Government
of India. This tax has been introduced through the
Finance Act of 2004.

5.11. Oracle Financials for Latin America
5.11.1. Overview
There are a number of Globalization features that provide functionality to

manage financial requirements for specific countries or groups of
countries/regions of the world. This section covers the Globalization features that
are available for Latin America.
5.11.2. Features
5.11.2.1. General Ledger Inflation Adjustments

Inflation Adjustments allows you to maintain and report on historical balances
and inflation-adjusted in General Ledger. This is required in Latin American
countries such as Argentina and Chile. This feature has been updated to uptake
the new Ledger and Legal Entity models. Users are now able to work with
different primary ledgers using the same responsibility.
5.11.2.2. Receivables Latin Tax Engine

This feature allows you to setup, calculate and report taxes to meet taxation
requirements in Latin American countries such as Argentina, Brazil, Chile, and
Colombia. The Latin Tax Engine is a regional feature with many generic
features, but there are some further country-specific setup steps to configure it to
each country’s specific requirements. This feature has been updated to uptake the
new Legal Entity model and Multi-Org Access Control. A few Global
Descriptive Flexfields associated with Items, Customers and Memo Lines have
been converted into named columns. In addition, the current tax setup in
Receivables system Options, has been redesigned in Oracle E-Business Tax’s
Applications Tax Options.
5.11.2.3. Latin America Extended Withholding

Latin America Extended Witholding allows you to setup, calculate and report
withholding taxes to meet taxation requirements in Argentina and Colombia.
There are some country-specific setup steps to configure it to each country’s
specific requirements and country specific reports. This feature has been updated
to uptake the new Legal Entity model, Payables’ Invoice Lines, Multi-Org
Access Control and Oracle Payments. Extended Withholdings have been fully
integrated with Payables for withholdings at invoice validation time and quick
payments, and with Oracle Payments for withholdings on payments batch
requests.
5.11.2.4. Brazil Receivables Bank Transfer

This feature has been updated to uptake the new Legal Entity model, new Ledger
model, Subledger Accounting model, Multi-Org Access Control and
Consolidated Bank Accounts. Users are able to define accounting rules in SLA
for the accounting of Receivables bank transfer transactions.

5.11.2.5. Latin America Reports
Country specific reports to support tax reporting, accounting reporting, and
payment formats are provided in a number of countries and these have been
converted to Oracle XML Publisher templates with underlying extracts.

5.11.2.7. Legal Entity Configurator

Legal Entity architecture, which is new in this release, provides users with the
ability to model an enterprise’s legal organizational structure and define rules and
attributes specific to legal entities. With adoption of the Legal Entity architecture
in transactions such as in Oracle Payables, many of the globalization features
now use the context of legal entities for statutory and other reporting. Users now
have a single and standardized business flow to define legal entities for any
country.

5.12. Oracle Financial Services Accounting Hub (FSAH) – New Product
5.12.1. Overview
Oracle Financial Services Accounting Hub is a new product, initially released

June 2005.
Oracle Financial Services Accounting Hub leverages the features of Oracle

Oracle Subledger Accounting and Oracle General Ledger to address the specific
requirements of the financial services industry.
Oracle Financial Services Accounting Hub allows users to efficiently create

detailed, auditable, reconcilable accounting for a variety of source systems, while
consistently enforcing accounting policy. It also includes a single, enterprise
wide accounting repository with configurable analytic information. This allows
users to simultaneously meet diverse corporate, management and reporting
requirements. Financial Services Accounting Hub serves as the information
backbone for finance and performance management repositories. It is an integral
component to Oracle’s Finance, Risk, and Compliance Architecture for financial
services.
5.12.2. Features
FSAH extends the features of Oracle Subledger Accounting and Oracle General
Ledger to be applied against front-office banking and other financial services
source systems.
For more information, please refer to Section 4.4 of this document. Additionally,
the Financial Services Accounting Hub initial release in 2005 was documented in
a separate Release Content Document available on MetaLink. This document
details the specific features and dependencies of FSAH.

5.13. Oracle Internal Controls Manager
5.13.1. Overview
Recent corporate financial scandals involving many companies have damaged

investor and employee confidence. As a result, Corporate Governance has moved
to the forefront of business agendas. There is an increasing focus on corporate
accountability and compliance with regulators holding top executives personally
responsible for misrepresentation of company performance. Oracle Internal
Controls Manager is a comprehensive tool for executives, controllers, internal
audit departments and public accounting firms to use to document and test
internal controls and monitor ongoing compliance. With Oracle Internal Controls
Manager, your company can increase internal control testing efficiency, improve
risk assessment confidence, and lower external audit verification costs. With
Oracle Internal Controls Manager the company officers responsible for certifying
a financial statement can review the financial statement in the consolidation hub
and drill to the internal control verifications in Internal Controls Manager.
5.13.2. Features
5.13.2.1. External Auditor Ready Reporting

A number of Audit Assurance Reports are available which could easily be
delivered via printer, e-mail, fax etc. Outputs generated are industry standard
such as PDF, RTF, and HTML and qualify as supporting documents.
5.13.2.1.1. Certification Reports

Organization and financial statement certification reports have all the
summary and detail of the certifications.
5.13.2.1.2. Segregation of Duties Reports

These reports show the users who have incompatible functions and
responsibilities. Also, the user waiver information is included in the reports.
5.13.2.1.3. Risk Library Reports

These reports detail the processes, associated risks, controls, audit procedures
and accounts. Listing reports are provided for risks, controls, audit
procedures and their attributes.
5.13.2.2. Export Search Results to Excel

This feature allows search results to be exported to Microsoft Excel from Oracle
Internal Controls Manager.
5.13.2.3. DBI for Compliance

This DBI page is targeted towards the Signing officer. This lists key metrics like
significant accounts evaluation, organization and process certifications and the
number of new and open issues. This page includes detailed portlets for each
metric, and also detailed drill down reports for each metric. The key reports are:

5.13.2.3.1. Financial Statement Certification Dashboard
This report provides a summary view on significant account evaluations,
organization and process certification results in all or selected financial
statement certifications.
5.13.2.3.2. Significant Account Evaluation Reports

This Financial Statement Summary Reports provide detailed information on
the evaluation of significant accounts, with the sub certification audit
engagements that form the basis for that evaluation.
5.13.2.3.3. Organization Certification Reports

The Organization Certification Reports provide detailed information on
organization certification progress and results, as well as open issues.
5.13.2.3.4. Process Certification Reports

The Process Certification Reports provide detailed information on sub
certification progress and results, risk exposure of business processes, control
evaluations by organizations, as well as open issues.
5.13.2.3.5. Open Remedial Actions Reports

The ‘Key Performance Indicator’ (KPI) portlet in the dashboard provides a
summary view on all open remedial actions, which includes findings and
remediation. Their corresponding aging information is also provided in the
detail reports.
5.13.2.3.6. Open Issues Summary Report

Issues are logged in sub certifications. They represent concerns in the
certification. The Open Issues Summary report provides an overview of open
issues in all the related sub certifications. The ‘Trouble area - past due’ issues
are highlighted in this report.
5.13.2.3.7. Compliance Environment Change Report

The Compliance Environment Changes report highlights changes in internal
controls, or things that affect internal controls. The changes are summarized
for the reporting period and represent stability of the compliance
environment. This report provides an overview of environment changes in
the chosen quarter.
5.13.2.4. Segregation Of Duties: Concurrent programs in Constraint

Definition
Segregation Of Duties constraints can now include concurrent programs.
5.13.2.5. Segregation Of Duties: Constraints with incompatible sets

The user can define constraints with incompatible sets of functions or
responsibilities. A user is in violation of this constraint if he/she has access to at
least one function/responsibility from the first set, and at least one
function/responsibility from the second set.

5.13.2.6. Segregation Of Duties: Re-validating constraints after corrective
actions
The user should be able to revalidate a violation report to check if corrective
action for all violations is complete. If there are no violations, the status of the
existing violation report should be updated as ‘Corrected’.
5.13.2.7. Segregation Of Duties: Complaint Provisioning of User Accounts

Whenever a user is given additional access by adding a responsibility, or adding
a function to a menu, a check will be done to see if this violates any existing
Segregation of Duties constraint. If some constraints are violated then the system
sends a notification to process owners and organization managers about the
violation.
5.13.2.8. Upload Recommended Settings

Users are able to upload the recommended settings for various profile options
and setup parameters through Web ADI spreadsheets.
5.13.2.9. Application Controls Change History Reports

Oracle XML Publisher-based reports are available to show the history of
application control changes.
5.13.2.10. Application Control Overrides in Suppliers and Supplier Sites

Users are able to view the setup parameters for an organization that has
overriding values for a supplier or supplier site.
5.13.2.11. Profile Option Change Tracking

Changes to profile option values are tracked. Users are able to view profile
option values at site, application, responsibility and user levels, and the history of
changes at each level. Users are also able to view values that are overridden at
lower levels like application, responsibility and user.

5.14. Oracle Internet Expenses
5.14.1. Overview
Oracle Internet Expenses, a T&E expense management solution, is designed to
ensure self service users comply with your expense reimbursement policies,
while at the same time quickly and accurately entering their expenses.
5.14.2. Features
5.14.2.1. Expense Allocations

This feature empowers end users to perform General Ledger (GL) accounting
and/or Oracle Projects expense allocations, including splitting expenses. This
feature ensures expenses are properly charged since users know best how their
expenses should be allocated.
5.14.2.1.1. Flexible Setup

You are able to define whether end users can update one, many, or all GL
accounting segments. You are able to define different segment update rules
for each chart of accounts, and at the set of books level. This ensures proper
data security since users only have access to information that is relevant to
their responsibilities.
Note: This feature was first released with Oracle Internet Expenses Mini-
pack J (11i.OIE.J) and enhanced in Mini-pack K (11i.OIE.K).
5.14.2.1.2. Expenses Splitting

Based on system setup, end users are able to split expenses across multiple
accounting segment values, for example across multiple cost centers. Oracle
Projects users are able to split expenses across multiple projects or tasks.
This is important since users often perform work for many different entities.
pack K (11i.OIE.K).
Users have the flexibility to split one, many, or all expenses at the same time
using equal percentages, or user-defined percentages. Users can also split
individual expenses by amount.
pack K (11i.OIE.K).
5.14.2.1.3. GL Accounting Validations during Entry

Based on setup, Internet Expenses ensures accounting code combinations are
valid before expense reports are submitted for approval. This helps to
streamline the reimbursement process since end users have first-hand
knowledge about where expenses should be charged. If you choose to

validate in workflow (existing behavior), your back-end personnel will be
able to correct invalid code combinations via a notification.
pack J (11i.OIE.J).
5.14.2.1.4. Customized Accounting Generation

Using new accounting client extensions, you can create custom rules to build
and validate accounting code combinations. This is important if you have
special accounting hierarchy rules that are not met with the out-of-the-box
defaulting and validation rules.
pack J/JRUP2 (11i.OIE.J).
5.14.2.1.5. My Allocations
Users can predefine expense allocation sets to facilitate rapid expenses entry.
During entry, end users are able to apply their allocation sets, adjust the
results, and create new allocation sets.
pack K (11i.OIE.K).
5.14.2.2. Global Per Diem and Mileage

This feature provides enhancements to the existing solution, including the ability
to automatically upload U.S. GSA Per Diem rates. This helps you to comply with
various statutory rules that dictate how users should be reimbursed.
5.14.2.2.1. U.S. GSA Per Diem Uploads

Expense process owners can automatically upload CONUS and OCONUS
Per Diem rates provided by the U.S. government. The solution provides full
support for seasonal rates. The uploaded rates are available both for
reimbursing employees, as well as for establishing policy compliance limits
for meals and accommodation expenses.
5.14.2.2.2. Enhanced Per Diem and Mileage Calculations

The enhanced global per diem solution provides additional support for
complex calculations to meet statutory regulations, especially in the Nordic
countries. Various enhancements have been made to the mileage
reimbursements solution. In particular, you now have the ability to upload
accumulated mileage for employees, if you happen to implement Internet
Expenses in the middle of a fiscal year.
Note: This feature was first released with Oracle Internet Expenses Mini-pack K
(11i.OIE.K).

5.14.2.3. Cash Advances Management
End users can apply advances during expenses entry. In addition, users are able
to search on payments information. These enhancements help you to provide
improved cash advances management.
5.14.2.3.1. Self-Service Advance Applications

End users are able to apply their cash advances during expenses entry. If a
user does not apply an available advance, they are asked to enter a reason
why they did not apply the advance. In real-time, users are presented with
information on the outstanding balance of their advance. This is particularly
useful when end users must reimburse their employer for an outstanding
balance on an advance.
This feature helps to streamline the expense reimbursement process since

users know best to which expenses their advances apply.
5.14.2.3.2. Payables Advances Management

The HTML-based audit management module has the ability for Payables
personnel to review or apply advances, and to adjust advances applied by end
users. (In prior releases this was only available in the Payables Expense
Reports form.) In addition, you are able to define audit selection rules to
ensure expense reports are selected for audit if users do not apply available
advances to an expense report.
5.14.2.3.3. Payments Search

Users are able to search on both advances and reimbursements. This
capability is available to end users, Payables personnel, help desk personnel,
and users of the expense analysis and reporting module. This is particularly
important to management so they can keep track of outstanding advances.
(11i.OIE.K).
5.14.2.4. Bar Coding

Based on setup, a bar code is generated and printed on the expense report
confirmation page. When Payables personnel receive the receipts package, they
can quickly scan the bar code to ‘check in’ the receipts package. This
dramatically improves the productivity of your Payables personnel.
(11i.OIE.K).
5.14.2.5. Manager Approvals

The integration with Oracle Approvals Management (AME) has been further
enhanced to support the expense allocations feature.
5.14.2.5.1. Enhanced Cost Center and Projects Approvals

You are able to route expense approvals based on the aggregated amounts
charged to cost centers or projects. The approval notification shows both the
total amount to be approved, and how much of each expense was charged to
the area of approval authority. This feature ensures that proper approval
authority is enforced when an expense report is allocated to many different
cost centers, projects, or awards.
5.14.2.5.2. Parallel Approvals

You can route approvals in parallel when expense reports are charged to
multiple cost centers, multiple projects, or multiple awards. This streamlines
the approvals process and thus ensure users are reimbursed as quickly as
possible.
5.14.2.5.3. FYI Notifications

You can define rules in AME to send FYI notifications to managers and
others who should be informed of expenses charged to their area of authority,
but who do not need to approve the expense report.
(11i.OIE.K).
5.14.2.6. Audit Management

The following enhancements have been made to the HTML-based audit
management module.
5.14.2.6.1. Enhanced User Interface

The Audit Expense Reports page has been redesigned with separate expense
views relevant to the activities auditors perform. These activities include
verifying expenses, processing policy non-compliance issues, and reviewing
other expenses data. This improves the overall auditor experience and will
facilitate better decision-making.
When receipts are itemized, the relationship between the receipt and the
itemized lines is shown. This increases auditor productivity since they are
able to quickly verify that required receipts are received.
5.14.2.6.2. Auditor Itemizations

Payables personnel are able to itemize receipts using the same user interface
that is used by end users. This helps streamline the reimbursement process
and ensure that expenses are properly accounted for.
5.14.2.6.3. Expense Allocations in Audit

Auditors have visibility to all allocations information, including when
expenses are split. They are also able to update the accounting for split
expenses. This allows auditors to ensure that accounting is correct for all
expenses.
(11i.OIE.K).

5.14.2.7. Audit Automation
The already robust audit automation functionality is further enhanced as
discussed below.
5.14.2.7.1. Payment Holds

You are able to automatically place expense report payments on hold when
users have not submitted required receipts. This feature helps to ensure
compliance with your expense reimbursement policies.
5.14.2.7.2. Enhanced Audit Rules

New audit selection rules are available, including the ability to select for
audit all expense reports over a certain amount. This feature improves
expense report compliance with your internal controls.
Note: This feature was first released with Oracle Internet Expenses Mini-pack J
(11i.OIE.J).
5.14.2.8. Receipts Management

These new features help to streamline the receipts management process.
5.14.2.8.1. Enhanced Receipts Required

Users don’t need to submit physical receipts when they charge business
expenses to their employer credit cards. Auditor efficiency is improved when
physical receipts are not required. Similarly, end users will spend less time
processing their expense reports.
5.14.2.8.2. Receipts Tracking

Expense reports have a receipts status to indicate whether receipts are, for
example, required or overdue. You are able to send notifications to users
when receipts are overdue, and when receipts are received. The receipts
status and notifications improves the tracking and management of receipts
that are required for proper verification of business expenses.
5.14.2.8.3. Receipts Missing

It is possible to send notifications when users do not have original receipts
and a missing receipts declaration is required. You are able to use Oracle
Approvals Management to route expense reports for approval when end users
cannot provide original receipts or other evidence of the business expense.
(11i.OIE.J).
5.14.2.9. Entertainment and Fringe Benefits Policy Compliance

End users are able to enter employee and non-employee information for expenses
related to entertainment and fringe benefits. You can capture additional
information for attendees and recipients such as the business sector of non-
employees. This improves reporting for policy and statutory compliance.

(11i.OIE.J).
5.14.2.10. Credit Cards

These new features help streamline administration of credit card programs, and
streamline expenses entry.
5.14.2.10.1. Automatic Level 3 Itemizations

You are able to upload and validate detail transaction data for MasterCard
CDF3 and Visa VCF4 formats, when merchants provide this data. Oracle
Internet Expenses uses the detail transaction data to automatically itemize
credit card transactions. This reduces the time users spend completing
expense reports, and ensures transactions are accounted for properly.
pack J (11i.OIE.J).
5.14.2.10.2. Automated Transaction File Transfers

You are able to automatically download credit card transaction data files
from your card provider's server. This feature provides a synchronized and
efficient way to retrieve your credit card transactions. In this release this
feature is available for American Express card programs only.
pack J (11i.OIE.J).
5.14.2.10.3. Visa Integration

A new credit card transactions load and validate program provides complete
support for uploading and validating Visa transaction files in Visa VCF3 and
VCF4 formats.
pack J (11i.OIE.J).
5.14.2.10.4. Historical Transactions Management

You are able to categorize unused transactions as ‘historical’ and thus
prevent further processing of these transactions. You can also send
notifications to inform end users to start submitting subsequent transactions
on expense reports. This feature helps to ensure that the cutover to using the
Internet Expenses credit cards solution is smooth, and that end users
understand the new procedures.
pack J RUP1 (11i.OIE.JRUP1).
5.14.2.11. Expense Report-Level Descriptive Flexfields

You have the ability to enable descriptive flexfields that apply to the entire
expense report. This allows you to capture important policy information such as
the start and end dates of a business trip, travel authorization numbers, and so on.

Note: This feature was first released in Oracle Internet Expenses Mini-pack J
(11i.OIE.J).
5.14.2.12. Attachments
End users and auditors are able to attach documents such as imaged receipts to
the entire expense report, or to individual expenses. Managers and auditors can
access and review the attachments, which facilitates more efficient approvals.
Note: This feature was first released in Oracle Internet Expenses Mini-pack J
(11i.OIE.J).
5.14.2.13. Expense Analysis and Reporting

The following enhancements have been made to the expense analysis and
reporting tool.
5.14.2.13.1. Proxy Assignment

Managers with the expense analysis and reporting responsibility are able to
assign the rights to view their HR reporting hierarchy to other users, such as
financial analysts and administrative personnel.
5.14.2.13.2. Cross-Organizations Support

Managers and other users are able to perform expense analysis and reporting
across organizations from a single view. This is particularly important for
managers whose management hierarchy spans multiple business units or
legal entities.
(11i.OIE.J).
5.14.2.14. Ad Hoc Reporting

Using Oracle Discoverer, you can develop ad hoc reports based on seeded
expense reporting business areas. The business areas are targeted for use by
operations teams with visibility across the entire company. This helps you to
provide decision makers with information in a format that is meaningful to them.
5.14.2.15. Terms and Agreements

You are able to require end users to acknowledge that they have reviewed and
agreed to the terms of your travel, entertainment, and reimbursement policies
prior to submitting expense reports.
(11i.OIE.J).
5.14.2.16. Region-Based Confirmation Page Messages

You are able to configure the expense submission and processing instructions
according to local and regional requirements. You use region-based messages,

for example, to provide different receipt submittal policies and related processes
to meet shared-service or other organizational needs.
(11i.OIE.J).
5.14.2.17. Help Desk Support

A new responsibility has been provided so help desk personnel can quickly
search for expense reports. Help desk personnel can also view the confirmation
page so that both they and end users see the same information. This ensures your
help desk personnel can quickly resolve questions raised by end users.
RUP2 (11i.OIE.J/JRUP2).
5.14.2.18. Contact Us
This feature helps you to quickly enable end users to contact your help desk
personnel. You have options to initiate an Oracle iSupport create service request
process, open a formatted page with contact and problem description fields, open
a URL, or open an email composer window.
5.14.2.19. Expense Report Export

Payables personnel can run the Expense Report Export concurrent program from
the Internet Expenses Auditor and the Internet Expenses Audit Manager
responsibilities. A new user interface allows payables personnel to review the
export results online and analyze them quickly. Four categories of results list the
expense reports for which invoices were created, the expense reports that had
prepayments applied, the expense reports placed on hold, and the expense reports
that were rejected. Existing expense import has been renamed to expense report
export to reflect the change in the process.

5.15. Oracle iReceivables
5.15.1. Overview
Oracle iReceivables, a self-service based account management application, helps

reduce the cost structure of billing and collections by providing a company's
customers with the ability to access their accounts online. Customers can perform
extensive inquiries, dispute bills, pay invoices, adjust open credits and review
account balances. Bill disputes are automatically routed and processed,
eliminating the need for intermediaries or paper-based claims management,
allowing companies to save money, reduce processing time, and improve
customer service. All transactions accessible via Oracle iReceivables are
protected by Oracle’s standard Self-Service Web applications security. Oracle
iReceivables is an integral part of the Oracle E-Business Suite, designed to
transform your business into an E-Business.
The intuitive user interface provides users with simple and effective access to
Receivables data. The practical, Web-based look and feel, is consistent with other
Oracle Self-Service applications, and offers distinct navigation indicators and a
new step-by-step process flow.
5.15.2. Features
5.15.2.1. Oracle Trading Community Architecture

Oracle iReceivables uses the Party Usage Model in Trading Community
Architecture Release 12.0 to enable users to manage bills for multiple accounts
based on the customer’s payee relationships configured for the users account.
With this feature users now have the ability to dynamically manage bills for
multiple accounts without being required to register for access to each specific
account.
5.15.2.2. Oracle Payments

Oracle iReceivables uses Oracle Payments’ new payment formatting and end-to-
end electronic payment processing features made available in this release.
Previously, users had to manually type in customer credit card or bank account
information when taking payments, resulting in decreased efficiency and
increased risk of data entry errors. Now users can select from customer credit
card and bank account data already in the system. Payment method and
processing rules are easily configurable from new setup pages, and customers’
payments are automatically authorized and captured.


Oracle iReceivables leverages the Multi-Org Access Control in Shared Services

Release 12.0 to provide external and internal users org-specific and cross-org
views of account and transaction information.
5.15.2.4. Enhanced User Self Registration

Oracle iReceivables has enhanced the User Self Registration functionality by
leveraging the User Management application and incorporating the new
challenge-response model, which provides greater flexibility and allows the
deploying company to configure their own validation questions according to their
business practices.
5.15.2.5. Cross Customer Site Payments

Oracle iReceivables has enhanced the payment functionality to allow the self-
service users to pay their bills and review their payments across customer sites.

5.16. Oracle Loans
5.16.1. Overview
Oracle Loans is designed to support the full range of business activities

associated with creating, approving, funding, servicing and monitoring loans. Its
purpose is to automate and standardize the loan origination and loan servicing
processes for lending organizations. Oracle Loans is geared toward federal and
state/local agencies and other lending organizations who offer direct loans or
extended repayment plans. Oracle Loans leverages numerous Oracle E-Business
Suite modules including Oracle Receivables, Oracle General Ledger, Oracle
Payables, Oracle Customer Data Hub, Oracle Credit Management and Oracle
Advanced Collections.
5.16.2. Features
5.16.2.1. Loan Type and Product Configuration

Oracle Loans expands the use of Loan Type and Product to provide controls and
consistency across loan programs. The Loans Adminstrator is able to create loan
products with numerous terms and conditions that default into the loan
application. These defaulting parameters streamline the loan agents’ application
process while enforcing policy across agents and applicants. Some of the
defaulting parameters that are available include:
• Whether or not a loan has multiple disbursements
• Whether or not a construction loan can convert to a term loan
• Whether or not a credit review is required
• Range for the loan requested amount and term
• Rate type
• Floating frequency for variable rate loans
• Payment frequency
• Collateral required and loan-to-value ratio
• Conditions for approval or conversion
• Mandatory fees
• Disbursement schedule for loans with multiple disbursements
5.16.2.2. Multiple Disbursements

Oracle Loans supports multiple disbursement loans as required in Construction
and Student Loans, Disbursement phase and Term Phase. In the disbursement
phase, a disbursement schedule for multiple disbursements is supported. Payment
to TCA payee parties is part of this feature.
5.16.2.3. Loan Portfolios, Graphs & Online Reporting

Users are able to create different portfolios based on their criteria and have a
graphical depiction of the portfolio on the Loans Dashboard. A similar payment
graph is part of the Loans Amortization schedule.

5.16.2.4. Sophisticated Credit Decisioning
Tight and automated integration with Oracle Credit Management provides credit
checking and decision making with configurable scoring engines.
5.16.2.5. Federal Budgetary Control

For U.S. federal customers, the support for fund checking and reservation is
supported as dictated by the JFMIP requirements.
5.16.2.6. Floating Rate and Weekly Payment Frequency

Floating Rate and Weekly Payment Frequency support for floating rate based on
an index and weekly payment frequency is supported.
5.16.2.7. Enhanced Payment Plans with Rules

Rules can be set to auto-derive receivables to be converted into a loan based on
the product setup.

5.17. Oracle Payables
5.17.1. Overview
Oracle Payables provides the integration and flexibility you need to efficiently
manage disbursements while keeping strong controls over matching, budgets,
approval processes, and payments. As a cornerstone to the Procure to Pay flow,
Payables provides process collaboration across departments within the enterprise
and beyond to suppliers. As a key member of the Financial Management Chain,
Payables assists users in meeting the demands of corporate governance, promotes
fiscal discipline, and meets complex and diverse statutory requirements.
5.17.2. Features
5.17.2.1. Legal Entity

Legal Entity is a new addition to the Oracle E-Business Suite that enhances the
ability to manage one’s legal corporate structure and track data from the legal
perspective. The solution presents the foundation for features that help daily
operations comply with local regulations. Invoices and Payments indicate the
operating unit and the legal entity owner of the transaction. The legal entity can
be used as selection criteria when preparing pay runs. For more details, please see
the Legal Entity section of this document.

In Oracle Payables, your Multi-Org Access Control and Preferences allow users
to enter invoices or batches of invoices for one operating unit, and then
seamlessly enter invoices for another operating unit. Select invoices across
operating units for payment processing within a single pay run. Setup is more
manageable and gathering information and running concurrent programs are
more efficient. For more details, please see the Multi-Org Access section of this
document.
5.17.2.3. Representation of Suppliers in the Trading Community

Architecture (TCA)
The Trading Community Model is a highly flexible architecture that allows you
to fully model real world entities in your trading community and accurately
represent the complex relationships among those entities. It is the core data
model for trading partners used by Oracle E-Business Suite applications. By

representing Suppliers as part of the trading community, you have access to
many of the features provided by TCA. These include:
• Data Librarian Function & Processes
• Integrated Enrichment Capabilities including D&B
• Address Validation
• Data Consistency
• Ease of Data Maintenance
5.17.2.4. New User Interface for Supplier Entry and Maintenance

This new user interface presents a clear distinction between the supplier’s
company details and terms and controls for the trading relationship. Managing
the attributes specific to particular functional areas such as Oracle Payables,
Purchasing and Receiving can be controlled with the use of Function Security.
Adding new locations or relationships with additional operating units is
streamlined. Additional tax and legal registrations provide key information to
meet your reporting and compliance needs. Tailor a quick update page with those
values most often updated for even faster maintenance.
Along with the many attributes that could be captured using the previous Forms
based user interface, the new supplier UI also includes a Survey section that
provides administrators with access to the results of questionnaires that the
supplier has been asked to complete, either during self-registration or as part of
profile maintenance through iSupplier Portal. Purchasing Category assignments
further designate the type of goods and services the supplier will supply.
5.17.2.4.1. Supplier Bank Accounts

Enhancements to the setup of supplier bank accounts remove some
processing restrictions and achieve greater control and security. Bank
accounts are modeled centrally providing the following features:
• The bank account is tied directly to the trading partner allowing one bank
account definition to be leveraged by a ‘supplier’ trading partner and
shared if the trading partner is also an employee or customer. This
approach provides for easier and centralized maintenance and security of
the bank account information
• This definition is targeted directly towards ‘trading partner’ bank
accounts leaving internal bank accounts out of the user interface. In
other words, the supplier’s banking information is entered and assigned
right in the Supplier Entry and Maintenance user interface.
• Notification when trying to inactivate a bank account that is associated
with unpaid invoices or pay runs that are in process
5.17.2.5. Introduction of Invoice Lines

Oracle Payables incorporates Invoice Lines into the invoice model. Adding
Invoice Lines is a key architectural change, which enables Oracle Payables to
better model the paper or electronic business document yet maintain key features
that exist at the invoice distributions level.
Merged into the current invoice transaction business flows, Invoice Lines
supports the representation of the goods or services as well as tax, freight, and
other charges as lines with distributions tied to each line. Additional fields
record attributes such as serial numbers and item descriptions.
This feature offers the ability for line level approval and matching between an
invoice line and a purchase order shipment pay item, or receipt. Furthermore, it
facilitates the capture and transfer of additional, pertinent information to and
from Oracle Projects and Oracle Assets.
5.17.2.6. Invoice Processing for Contract Financing, Retainage, and

Progress Terms
Complex payment terms and conditions for fixed price contracts is captured
during the procurement contract flow. This includes options to schedule points
of progress for invoicing, request an advance or progressive financing support,
and record negotiated amounts to retain until completion of the purchased item,
service, or project. These terms and conditions are supported in Oracle Payables
when recording invoices and managing payment execution during the lifetime of
the contract.
5.17.2.6.1. Financing: Advances and Progressive Contract Financing

Advances are generally one-time prepayments made before work on the
contract begins while contract financing infuses money to the supplier as
work progresses. Oracle Payables ensures that the amounts financed are
recovered by automatically applying financing to subsequent invoices per the
specific terms captured in the purchase order.
5.17.2.6.2. Retainage and Retainage Release

Retainage is the common practice of withholding a fixed amount / percentage
of payment until all work under a contract is complete and accepted. The
retainage terms are agreed upon by the buyer and supplier and are intended to
make sure that the supplier finishes the work as per the contract. Retainage
is also called ‘retention’ or ‘contractual withholds’. At the end of the project
or when agreed events have occurred, the supplier requests the amount
retained and payment is made to release it. Payables automatically retains
per the purchase order on invoices coming in and supports the retainage
release and payment process.
5.17.2.6.3. Invoices for Progress

Invoices representing progress are matched to the purchase order, updating
the purchase order with the progress. A percentage of the invoice may be
retained and contract advances and financing may be automatically applied
seamlessly bringing together the relevant contract terms with each invoicing
event. In some cases, the progress is reported via a work confirmation
process. Suppliers entering a work confirmation directly in Oracle iSupplier
Portal have a receipt recorded in Oracle Receiving. Pay on Receipt terms
recorded on the purchase order are translated into a self-billed invoice, in
Oracle Payables, to be paid.

5.17.2.7. Enhanced Invoice Approval Includes Line Level Approval
With the introduction of Invoice Lines, users are able to further extend their
approval policy granularity in Oracle Approvals Management for individual lines
of an invoice.
Notification details are targeted to the level of approval required and embedded
with a view of the invoice including summary amounts, essential line
information, approver sequence, and attachments. Approvers of invoices
submitted without a purchase order can enter accounting details as they approve.
5.17.2.8. Non PO Invoices Entered via iSupplier Portal

Invoices entered by Suppliers where a purchase order has not been obtained are
represented as Invoice Requests. Invoice Requests are visible in Oracle Payables
but are not paid or accounted until the invoice can be verified and approved.
5.17.2.9. Collaboration with Suppliers to Resolve Disputes

Holds on invoices that are a result of differences between the invoiced and
planned amounts or quantity result in disputes that must be resolved. Invoices
that have been approved by the owner of the purchasing transaction but rejected
during the approval process may also be subject to disputes with the supplier.
Leveraging workflow notification, disputes are communicated and negotiations
can be suggested to the Supplier. Suppliers are able to accept the suggested
changes, withdraw their invoice, or submit their counter proposal. The
negotiation continues until the issues are finally resolved. Additionally,
Suppliers are able to negotiate online via iSupplier Portal. All changes and
comments entered during the collaboration are tracked in Payables and can be
viewed at any time.
5.17.2.10. Oracle E-Business Disbursement Requests

Disbursement Requests are requests to make a payment to a company or
individual that is not a supplier. This feature empowers the Payables Manager
with visibility and control over the items selected for payment processing.
Disbursement requests carry accounting entries and support funds checking for
budgetary control. Oracle E-Business Suite products may submit the request as
already approved or take advantage of Oracle Payables’ Approval Workflow.
Currently, Oracle Loans takes advantage of this feature for loan disbursements to
borrowers and Oracle Receivables for customer refunds.
5.17.2.11. Enhancements to Payment Banks, Branches, and Accounts

Banks and Bank Branches are represented in Oracle’s Trading Community
Architecture and shared by other Oracle E-Business Suite applications. The
Bank Account is centrally defined, managed and secured and includes the legal
ownership and operating unit access for each bank account. The Oracle Cash
Management section of this document provides further details.

5.17.2.12. Payment Process Enhancements
Payment processing is significantly enhanced with this release. Along with a
new user interface, the management and visibility of the payment process are
much more robust and easier to use.
5.17.2.12.1. Toolset for the Payment Manager

Manage fewer pay runs by choosing selection criteria with multiple
currencies, operating units, and pay groups. A new Selected Invoices page
displays summary and detail information used to view and analyze invoices
selected in a pay run. Powerful search tools improve online inquiry to
invoices that you may want to review, modify, or remove. In addition, you
can view invoices that matched the invoice selection criteria but could not be
selected because they were not validated or approved. This allows you to
quickly identify key invoices that you might want to resolve so they can be
included in the pay run. Resolve missing exchange rates easily within the
pay run itself.
Save pay run invoice selection criteria and processing requirements in a

template to be reused and/or scheduled. Schedule the submission of your
payment runs using a particular template periodically or with a more flexible
schedule such as every other Friday and the last day of the month. You are
also able to include the pay run in a request set if you want to group other
programs or reports with your pay run processing.
A Payment Dashboard empowers your payment manager with the ability to

monitor all current pay run processing and payment processes that require
attention.
5.17.2.12.2. More Robust and Flexible Payment Processing Engine

Oracle Payables, in partnership with Oracle Payments, offers the latest
generation of electronic payment transmission technologies, formats, and
security meeting most industry standards ‘Out of the Box’. For more details,
please see the Oracle Payments section of this document.
5.17.2.13. Accounts Receivable / Accounts Payable Netting

When a trading partner is both a customer and a supplier, you may choose to
offset open receivables’ against open payables’ items. Netting Agreements
add trading partner terms as well as deploying company controls. A
selection program automatically pulls information from Oracle Receivables
and Oracle Payables taking into consideration discounts, late fees, and
withholding taxes prior to determining the final netting amount. A review
process and trading partner approval afford further verification to support the
netting event.

5.18. Oracle Payments
Overview Oracle Payments is a new product in this release.
Oracle Payments provides a highly configurable and robust engine to disburse

and receive payments. Oracle Payments is a fundamental part of the Oracle
Applications architecture, and is provided with multiple products that require
support for payment processing. As the new central payment engine, Oracle
Payments processes invoice payments from Oracle Payables, bank account
transfers from Oracle Cash Management, and settlements against credit cards and
bank accounts from Oracle Receivables. Oracle Payments provides the
infrastructure needed to connect these applications and others with third party
payment systems and financial institutions.
In addition to new features, Oracle Payments offers functionality previously

released as Oracle iPayment, which will be obsolete as of Release 12.0.
The centralization of payment processing in the Oracle Payments engine offers

many benefits. Companies are able to efficiently centralize the payment process
across multiple organizations, currencies, and regions. Better working capital
management can be achieved by providing cash manager’s real-time visibility
into cash inflows and outflows. A full audit trail and control is supported through
a single point of payment administration.
The product supports features designed specifically for its two payment process
activities: funds disbursement (paying money owed to creditors, such as
suppliers) and funds capture (electronically receiving money owed by debtors,
such as customers).
In order to centralize the funds disbursement process so that supplier invoices,

employee expense reports, loan disbursements, customer refunds and other
payments can be made in a consistent way, the payment processing functionality
and setup in Oracle Payables has moved to Oracle Payments in Release 12.0. The
approval and selection of invoices for payment remains in Oracle Payables, but
Oracle Payments now handles all creation and validation of payments,
aggregation of payments into files, format and transmission of files, and so on.
Country-specific Oracle Globalizations features are now standard and has also
been moved within Oracle Payments.
Most of the release 11i Oracle iPayments functionality already supported the
funds capture process. This functionality has been enhanced in some cases to
take advantage of the new payment architecture. Country-specific Oracle
Globalizations features are now standard and are included in Oracle Payments.
5.18.1. Features
5.18.1.1. Advanced and Highly Configurable Formatting Framework

Financial institutions and payment systems require compliance with certain
payment formats in order to disburse or capture funds. These formats are created
as templates in Oracle XML Publisher, and applied to an XML data file produced

by Oracle Payments. These templates can be created or modified with minimal
technical effort, using a standard text editor such as Microsoft Word. In the
future, when a payment system or financial institution requires a change to its
format, the change can be made in a matter of minutes, without costly external
consulting help.
Oracle Payments offers a rich library of payment formats that support various
types of payment files and messages. EFT disbursements, printed checks, ACH
debits, bills receivable remittances, and credit card authorizations and settlements
are all supported. Deploying companies can use any format in this library.
When a format is required, and it is not provided, it is simple to copy a similar
format template, and use it as the basis for creating the new format. This greatly
speeds time to implementation and testing, as well as reducing implementation
costs.
Special consideration has been given to the complexity of creating fixed position
and delimited formats. Oracle XML Publisher’s eText feature is used for these
format types. eText allows the format layout to be presented in an
understandable tabular structure.
5.18.1.2. Flexible Validation Model

In payment processing, it is critical to ensure that payment messages and files
sent to third-party payment systems and financial institutions are valid in addition
to being correctly formatted. In order to help achieve straight through
processing, Oracle Payments introduces a flexible way to ensure that payment-
related validations are in place.
Oracle Payments provides an extensive library of payment validations that are

associated with the supported payment formats. The payment validations are
implemented using a flexible framework that allows a user to add new rules.
Deploying companies are able to choose between using the prepackaged library
of validations, using their newly added validations, or using a combination of
these rules.
The timing of validation execution also has flexibility. Payment validation rules
can be assigned upstream or downstream in the payment process. Or a
combination of upstream and downstream rule assignment can be used. Users
have the flexibility to adapt this assignment to best support their business model.
For example, the upstream assignment and execution of validations may be best
for a decentralized payment environment. Or a downstream validation execution
may be better in a shared service environment, where payment specialists can
resolve any validation failures.
5.18.1.3. Secure Payment Data Repository

Oracle Payments serves as a payment data repository on top of the Trading
Community Architecture (TCA) data model. The TCA model holds the party
information. Oracle Payments then stores all of the party’s payment information
and its payment instruments (such as credit cards and bank accounts). In release
11i, this information was held separately in different applications such as in the
Oracle Purchasing supplier and the Oracle Payables bank account entities. This
common repository for payment data provides improved data security by

allowing central encryption management and masking control of payment
instrument information.
5.18.1.4. Improved Electronic Transmission Capability

Oracle Payments provides secured electronic payment file and payment message
transmission and transmission result processing. All previously existing
electronic transmission features in Oracle iPayment, Oracle Payables, and Oracle
Globalizations is obsolete and replaced by the new central payments engine.
The following new industry-standard transmission protocols is supported out-of-

the-box: FTP, HTTP, HTTPs, and AS/2.
5.18.1.5. Flexible Support for Various Business Payment Models

Companies model their business units in various ways in order to obtain
performance improvements and cost savings. Oracle Payments can be flexibly
configured to support a variety of payment models. Oracle Payments works in a
completely decentralized mode where it is part of accounts payable or collection
administration within each business unit. If a company has decided to centralize
these kinds of financial activities in a shared service center, Oracle Payments
works to efficiently support the shared service center model.
This flexibility in Oracle Payments also provides support to companies who wish
to use a payment factory model. A payment factory allows operating units to
maintain their own accounts payable and other payment administrative functions.
The role of the payment factory is to handle communication and transactions
with the company’s banking partners. Invoice selection can be done in Oracle
Payables within a single operating unit. Then a payment factory administrator
using Oracle Payments can consolidate payments from different operating units
into a single payment file for transmission and settlement, thereby reducing
transaction costs.
Oracle Payments supports the new Multi-Org Access Control component

throughout its processes to build payments and create payment files, as well as in
the dashboard pages provided for users to monitor and manage the payment
process. Multi-Org Access Control allows users to efficiently process business
transactions by processing and reporting on data that resides in an unlimited
number of operating units, within a single applications responsibility. Data
security is still maintained using security profiles that are defined for a list of
operating units and determine the data access privileges for a user.
5.18.2. Funds Disbursement Features
5.18.2.1. Enhanced Disbursement Process

The new Oracle Payments disbursement engine allows businesses to greatly
simplify their user procedures around managing complex payment processes that
span multiple payment methods, formats, check stocks, transmission protocols,
currencies, organizations, and bank accounts. Oracle Payments has redesigned
the payment build process that Oracle Payables used in previous releases. The
Oracle Payables payment batch process required the submission of the invoice

selection process to be segregated according to the way the invoices needed to be
paid (printed checks, electronic funds transfer, different formats, and so on).
The new Oracle Payments funds disbursement process allows the invoice
selection process in Oracle Payables and other products to be neutral to the way
documents will be paid. This is achieved by effectively splitting the payment
build process into two separate processes. The first process creates payments by
grouping documents according to various rules such as the payment method and
currency. Accounts Payable managers are able to simplify their processes by
submitting fewer invoice selection batches, each one spanning multiple payment
methods, formats, bank accounts, and payment currencies. Invoices can be
selected for payment based on business reasons such as maximizing discounts.
The second process then aggregates payments into formatted payment instruction
files, and handles any additional processing. The cost of the disbursement
process is lowered by creating fewer check runs and EFT payment files by
grouping payments across the criteria of the first process.
5.18.2.2. Enhanced Electronic Payment Processing

In previous releases, various solutions for electronic payment processing were
available throughout the Oracle E-Business Suite. Not all solutions supported a
complete information flow. For instance, in some cases an electronic file could
be produced, but not automatically transmitted to a bank. Now, Oracle Payments
offers end-to-end electronic payment processing that includes validation,
aggregation, formatting and secure transmission of payments to financial
institutions and payment systems.
Automatically pushing groups of payments through all the steps of electronic

processing, known as straight through processing or STP, results in lower costs.
The new formatting framework, flexible validation model, and improved
electronic transmission capability greatly minimize any need for writing payment
customizations.
5.18.2.3. Configurability
Oracle Payments offers flexible setup to configure funds disbursement
processing. The new configuration offers enhancements over the way payment
processing was set up in different products in prior releases. The benefit of these
changes is to help ensure an implementation that best support a controlled and
efficient disbursement flow. The configuration options are in these general areas:
• Payment methods: each document to be paid requires a payment method to

indicate how it should be handled in the funds disbursement process.
Payment methods can be defined as broadly or narrowly as appropriate.
Rules can be set for when payment methods can be used on documents.
Rules can also be specified to default payment methods on documents when
they are created

• Processing Rules: the payment method on a document links it to processing
rules configured in Oracle Payments. A business user can specify these rules
in an intuitive user interface page. Oracle Payments holds these setup rules in
a key entity it calls the Payment Process Profile. Users can configure as
many of these process profiles as they need for their payment processes.
Each profile holds rules for how documents should be built into payments,
how payments should be aggregated into a payment instruction file, and how
the payment file should be formatted. Rules for printing checks, transmitting
electronic files, generating separate remittance advice notifications and other
options can be easily configured
5.18.2.4. Payment Processing User Interface

Oracle Payments offers a new user dashboard for managing the funds
disbursement process. The dashboard allows payment administrators to manage
every aspect of the process across multiple organizations from the same place.
This benefits companies by providing full visibility of a payment as it moves
through the financial supply chain. The single location for monitoring the process
also helps streamline process management.
A payment administrator can use the dashboard to monitor the payment process
and ensure that it is running smoothly. If there are any problems in the process,
they are highlighted in a pending actions region. This is also the place where
notification of any required actions is shown. Actions may be required based on
the configuration choices made at implementation. The dashboard automatically
navigates the administrator to the area to take corrective or required action, based
on the pending issue the user selects in the region.
These are just a few of the actions an administrator can take from the dashboard:
• Review validation errors
• Review and optionally modify proposed payments
• Transmit payment files or retry failed file transmission processes
• Initiate check printing and record printing results
5.18.2.5. Enhanced Check Printing Process

The check printing process has moved from Oracle Payables to Oracle Payments
in this release. Check printing has been enhanced to make the initiation of
printing, recovery from printing errors, and recording of print results simple and
intuitive.
Payment document setup has been enhanced in Oracle Cash Management's new
internal bank account definition. Check stock can be set up to indicate if it is
prenumbered or if numbering is printed as part of the check format (common for
laser checks). Oracle Payments uses this setup to present the payment
administrator with the appropriate print actions for these different check stock
types. The new dashboard guides the payment administrator to each printing
action that may be performed.
5.18.2.6. Migration of Global Features to Central Engine

In previous releases, Oracle provided many payment features as country-specific
Oracle Globalizations. These global features have been merged into standard

payment processing features provided by Oracle Payments. They are available in
all deployments of Oracle Payments without any limitation by geography, while
still allowing the ability to configure processing by region where appropriate.
Most of the migrated global payment features support the funds disbursement
process. For instance, the new standard processing features lets users:
• Provide payment-level text messages for the payee

• Conditionally report payments to a country central bank
• Specify payment codes required by a financial institution for instructions on
transaction handling, who bears the cost of bank charges, and statutory
payment reasons
• Sequentially number EFT files for control purposes
• Configure the payment process to place formatted payment files in secure file
directories
5.18.2.7. Consolidation of Payment Formats

All Release 11i payment formats used in the funds disbursement process have
been consolidated as Oracle XML Publisher templates used by Oracle Payments.
These formats include all those previously supported in Oracle Payables, Oracle
U.S. Federal Financials, and Oracle Globalizations.
The following payment industry standard formats are now supported for use by
all products that integrate with Oracle Payments: EDIFACT PAYMUL, ANSI
X12.0 820, and U.S. NACHA.
5.18.2.8. Improved Remittance Advice Reporting

In release 11i, Oracle Payables and certain Oracle Globalizations provided some
formats to support remittance advice reporting and notify a payee of the
remittance detail when a payment is made. Now, Oracle Payments consolidates
these formats into an enhanced Oracle XML publisher format. The notification
process is improved by allowing the ability to set conditions for when a
remittance advice should be produced. Configuration is also supported to set how
the remittance advice should be delivered to a payee: via e-mail, fax, or printing
and sending manually. All of these improvements help deploying companies
better support their payment relationships with suppliers or other payees.
5.18.3. Funds Capture Features
Note that Oracle Receivables retains its existing features for lockbox processing
and the electronic upload of remittance messages.
5.18.3.1. Enhanced Configurability

Oracle Payments offers enhancements in its setup to configure funds capture
processing. The benefit of these changes helps ensure an implementation that
best supports consistent and seamless funds capture processing. The
enhancements can be grouped into three general areas:

• Payee Configuration: a Payee is defined for each entity in the deploying
company that will process payments; typically only one setup is needed for
the enterprise. This setup is done in payment card processing to define the
merchant. The Payee setup provides various options for payment processing.
The Payee setup user interface has been enhanced to add new options and
clarify existing options. In prior releases, products needed to have their own
way to link to the Payee entity. This is improved in release 12.0 by linking
operating units to the Payee within Oracle Payments setup
• Routing Rules: routing rules can be configured to specify how a transaction
should be processed. For example, the payment system that a transaction
should be sent to is determined by this setup. The input criteria to the routing
rules is enhanced in release 12.0, along with improving the user interface
• Improved Ability to Configure Processing Rules: previously in Oracle
iPayment some processing rules required configuration by a technical
administrator with software coding skills. In release 12.0, a business user can
set all processing rules in an intuitive user interface page. Oracle Payments
holds these setup rules in a key entity it calls the Funds Capture Process
Profile. Users can configure as many of these process profiles as they need
for their payment processes. Each profile holds the configuration for how to
format and transmit authorization messages and settlement files. Rules for
aggregating settlements into batches, limiting the number or amount of
settlements in a batch, notifying payers of settlements, and processing
acknowledgements can be easily configured
5.18.3.2. Improved Support for Credit Card Security Features

Oracle Payments consolidates the setup and management of credit card security
features such as address verification, capture of a card security code, and
masking of credit card numbers. Oracle Payments consolidates the setup and
management of these features in release 12.0. This ensures a consistent
implementation of credit card security functions throughout the funds capture
process.
5.18.3.3. Enhanced Payment Processing User Interface

Oracle Payments offers an enhanced user interface for managing the funds
capture process. The new dashboard page provides a clear overview of the
payment process status, and provides the user with greater insight into rejections
received from payment systems and into process failures such as communication
errors. Reconciliation of funds capture transactions (such as credit card
payments) is much easier with the new dashboard.
5.18.3.4. PINless Debit Card Transaction Support

Oracle Payments offers support for PINless debit card funds capture transactions.
Sometimes referred to as “Debit Bill Pay”, this payment method is allowed by
the debit networks in certain industries, including utilities, telecom,
cable/satellite, government, education, and financial services.

5.18.3.5. Improved Payer Notification of Settlement
In release 11i, certain Oracle Globalizations provided a notification letter that
could be generated and sent when a payer's bank account was debited to capture
funds for payment. Now, Oracle Payments consolidates these letters into an
enhanced Oracle XML publisher format. The format supports notification for all
types of automatic funds capture settlements supported by Oracle payments -
card payments or bank account transfers. The notification process is improved
by allowing the ability to configure how a notification should be delivered to a
payer: via e-mail, fax, or printing and sending manually. All of these
improvements help deploying companies’ better support their payment
relationships with customers or other payers.
5.18.3.6. Direct Debit Enhancements

Oracle Payments supports online validation for electronic funds transfers through
enhanced API’s. The validation service is provided by some payment systems to
perform validity checks on the payer bank account to be debited. Typically this
service verifies that the bank account number is valid and not cited for fraudulent
payment activity.
Oracle Payments extends its support for electronic funds transfer by adding third-
party certifications for Paymentech and Concord EFSnet.
5.18.3.7. Improved Batch Settlement Performance

Bulk processing is now supported in the settlement interface from Oracle
Receivables to Oracle Payments. The result is improved performance when
running the automatic remittance program in Oracle Receivables.
5.18.4. Terminology
Term Definition
Payment Process Profile The Payment Process Profile holds all of the rules for how
funds disbursement processing will happen on a document to
be paid. The assignment of a process profile to a document is
determined by the payment method on the document. When a
user creates a process profile, he specifies rules such as:
• Which payment methods should use the profile and
under what conditions
• How documents should be built into payments
• How payments should be aggregated into a payment
instruction file
• How the payment file should be formatted
• If and how a payment file should be transmitted
• If and when a payment file should be printed

Term Definition
Funds Capture Process The Funds Capture Process Profile holds all of the rules for
Profile how funds capture processing will happen on a document to
be authorized or a settlement to be paid. The assignment of a
process profile to a document is determined by the routing
rules on the Payee. When a user creates a process profile, he
specifies rules such as:
• How authorization messages should be formatted
and transmitted
• How settlements should be aggregated into a
settlement batch
• How the settlement batch should be formatted
• How acknowledgements received from the payment
system should be processed

5.19. Oracle Profitability Manager – New Product
5.19.1. Product Overview and Foundation
Oracle Profitability Manager provides enterprises with a greater insight into the
profitability of current operations, and empowers them with actionable
information for making decisions and driving improved profitability. As part of
Oracle’s Corporate Performance Management (CPM) suite, Oracle Profitability
Manager is a comprehensive solution for the calculation, analysis and reporting
of profitability.
Oracle Profitability Manager is a new application. It is the integration of two

existing applications:
• Oracle Performance Analyzer (part of the Oracle Financial Services suite)

• Oracle Activity-Based Management (part of the E-Business Suite)
In Release 12.0, major emphasis will be placed on maintaining all the industry
leading features and functions available in earlier versions of the Financial
Services Applications (OFSA), while simultaneously leveraging the power of the
Oracle E-Business Suite.
The new Profitability Manager application broadens the industry appeal of

profitability analytics, and repeats the success the legacy products had beyond
financial services enterprises. This release provides profitability analytics across
any enterprise, in any industry sector.
5.19.2. Release Overview
The 12.0 Release of Oracle’s Profitability Manager Application incorporates the

functionality from Oracle Activity-Based Management Release 11i, and Oracle
Performance Analyzer Release 4.5.
Oracle’s Enterprise Performance Foundation (EPF) provides a common

foundation for multiple Corporate Performance Management (CPM)
applications, including Oracle Profitability Manager. For more details about the
feature enhancements that will be included in the Enterprise Performance
Foundation component of the release please see the Enterprise Performance
Foundation section of this document.
In addition to the robust new features and functionality common across the
Oracle Enterprise Performance Foundation, features specific to profitability
management include Business Rules and calculations for allocation of income
statement and balance sheet items, mapping activity rates, activity cost rollups,
activity statistic rollups, cost object unit costs rollup and calculation, and party
profitability.
Previous releases of these applications required additional integration to leverage

the power of Activity-Based Management and Performance Analyzer. The 12.0
Release combines those features into a single product, leveraging the strength of

the shared, common data model. Customers, from any industry, can now
incorporate activity and cost object measures directly in their operational models
without external integration.
5.19.3. Features
5.19.3.1. Powerful Allocation System

Oracle Profitability Manager’s Mapping Rule data processing approach continues
to meet the performance requirements of our customers who must process very
large sets of data in a timely way. Mapping Rules support the following
allocation types, covering the methods available in the prior releases of Oracle
Performance Analyzer and Oracle Activity-Based Management (ABM):
Adjustment – Adjustment rules are used to create reconciling balances, or to

adjust data for other business reasons. This was called a ‘plug’ allocation in
version 4.5 of Performance Analyzer.
Field – Field rules are used for detail account and transaction calculations.
Calculations between balance or rate columns on accounts are enabled with this
method.
By Dimension – By Dimension rules are used for calculations between balances

and rates. Generation of cost of funds is easily enabled with this method. This
was referred to as ‘by-leaf’ in version 4.5 of Performance Analyzer.
Percent Distribution – Percent Distribution rules are used for realignment of costs
or income items. The source data is ‘distributed’ across the targets, and generally
preserves the starting amounts in the target dimensions. This incorporates the
‘by-leaf’ percent distribution from version 4.5 into a single percent distribution
rule type. All functionality from version 4.5 of Performance Analyzer is
preserved.
Simple Source on Allocation – Simple Source on Allocation rules are used for
direct factor calculations. This feature also enables creation of a raw calculation
template that can be built up using the other methodologies. This is new in the
Profitability Manager 12.0 Release, and was not previously possible in version
4.5 of Performance Analyzer.
Retrieve Statistic – Retrieve Statistic rules are used for calculations between
balances and rates. Rates may be loaded from external sources into rate lookup
tables, or may be the results of prior processing steps. This was referred to as
‘Lookup Table’ in version 4.5 of Performance Analyzer, however in the new
Profitability Manager this is designed as a factor calculation, not a percent
distribution.
The above methods also support the mapping of activity rates to cost objects, cost
object extended cost, and cost object-mapped costs.
Previous users of ABM will gain significant advantage with these new rule types
since there will no longer be a one-to-one relationship between a source account
and a mapping rule. A single rule may now select multiple inputs and map the

results to all of the desired outputs. These ‘meta rules’ will significantly improve
the power of the mapping calculation.
5.19.3.2. Rule Sets

Users may group common rules together as a single Rule Set, which facilitates
the maintenance and auditing of rules. Individual rules can be sequenced when
defining a Rule Set, ensuring that a group of dependent rules are processed in the
appropriate order. Rules Sets may be submitted as a single unit to process a
complex business process involving multiple rules.
5.19.3.3. Transaction Costing

A major component of profitability analysis is the determination of how
transaction costs affect an organization’s results. Business or account
transactions may be integrated with the common data model, and then these
transactions may be costed and applied to the specific accounts where they were
generated.
When costing each transaction, a specific rate for the transaction is required to
determine the total cost. These specific transaction rates may be integrated with
the common data model, or they may be directly computed with the activity-
based costing functionality which will be provided in the 12.0 Release of Oracle
Profitability Manager. Activity rates generated with Profitability Manager are
immediately available for any transaction costing calculations, greatly reducing
the time and effort required to integrate rates from external applications.
5.19.3.4. Multi-Dimensional Activities and Cost Objects

The Activity and Cost Object components of the 12.0 Release of Oracle
Profitability Manager allow true multi-dimensional analysis and reporting. Users
have the flexibility to define the dimensions that comprise the activity and cost
object, based on each organization's individual needs. In addition to the ability to
define multiple dimensions that represent these objects, they may also be used to
create hierarchies of multi-dimensional activities and cost objects. The ability to
define true multi-dimensional activities and cost objects provides a powerful
solution for activity-based costing methodologies.
The true benefit from multi-dimensional activities and cost objects is the ability
to perform multi-dimensional analysis on these objects.
5.19.3.5. Activity Rates

In the 12.0 Release of Oracle Profitability Manager, the task dimension plus
optional additional dimensions define activities. This architecture provides the
ability to define multi-dimensional activities, and support multi-dimensional
activity rates. Users are able to answer the question, ‘How much does it cost my
organization every time an activity is performed?’
5.19.3.6. Activity Cost Rollup

Oracle Profitability Manager users have multi-dimensional Activity Hierarchies
to rollup low-level activity costs into activity cost pools. Activity cost rollups

determine the level of detail a user needs to see in calculations and reports. The
rolled up activity cost may also be used as the basis for the computation of
activity rates, much like in earlier releases of ABM.
5.19.3.7. Mapping to Cost Objects

In the 12.0 Release of Oracle Profitability Manager, Cost Objects are architected
to include true multi-dimensionality. In addition, Cost Objects support mapping
of direct expenses, activity costs and activity rates. This new feature allows fully
consumed costs at the cost object level as part of the standard set of mapping
rules. In the previous release of ABM, this involved multiple steps, and multiple
calculations.
5.19.3.8. Bill and Cost Object Unit Cost

The Bill of Resources and the calculation of cost object unit costs are improved
in the 12.0 Release with the ability to map expenses directly to a cost object and
a more robust multi-dimensional structure. The bill structure is composed
entirely of cost objects, and activities is included in the cost object cost through
the process of mapping activity rates to the cost object based on a statistical
driver, representing the consumption of each activity.
With true multi-dimensional cost objects in the 12.0 Release, an organization’s

business may be more accurately modeled.
5.19.3.9. Cost Object Extended Costs and Cost Object Total Costs
A single calculation engine is used to calculate cost object extended costs and
cost object total costs. Cost object costs flow through the system as different
levels, and culminate in what is described as cost object total costs. Initially, cost
object units costs are calculated to represent the cost to produce a single unit of a
cost object, and may be represented as follows:
Cost Object Unit Cost = Cost Object Mapped Costs/Production Volume
In addition to the generation of cost object unit costs, costs may be mapped
directly to a cost object. If the user wishes to combine cost object unit costs with
cost object mapped costs, they must be of a similar cost basis for their
combination to make sense. To make the cost object unit costs similar in basis to
the mapped costs, the unit cost must be ‘extended’ to be of the same basis as the
mapped cost. The cost object extended cost takes the following form:
Cost Object Extended Cost = Cost Object Unit Cost * Production Volume
This may seem like the reverse of the cost object unit cost, but in many cases the
production volumes used in the calculations represent different things – including
actual volume, or planned volumes.
Once the cost object unit costs have been extended to the same basis as the
mapped costs, they can be combined into cost object total costs as follows:
Cost Object Total Costs = Cost Object Extended Cost + Cost Object Mapped
Cost

By using the same calculation engine as mapping, additional mapping features
may also be used as part of these calculations.
The extended cost object calculation functionality allows the allocation of all cost
types to a cost object, allowing for the complete cost definition for any cost
object in the system, thus providing a true cost definition that shows all cost
components.
5.19.3.10. Customer Profitability

In the Oracle Profitability Manager 12.0 Release, Customer Profitability provides
the ability to compute customer and household level profitability. This feature
incorporates all cost data, with the related revenue data to segment customers and
households into different profitability rankings for reporting and analysis.
In this release, all features are user interface driven and conform to the Business
Rule architecture used across all Corporate Performance Management
Applications. This means that Customer Profitability rules use versions and
conditions, and there are screens for the user to define all the components of each
rule. In addition, the value index formula used for customer and household
profitability calculations is customizable.
The results from this process may be segmented into different profitability ranks,
or stratifications, and then integrated with the marketing applications to provide
support for direct marketing campaigns. This provides true customer focused
profitability analysis, and allows the business to make decisions based on
profitability information.
Please note that the management of the customer data, and the management of
the relationships between customers and households is accomplished outside
Oracle’s Profitability Manager application. Customer Profitability groups
accounts into households, but designation of the accounts and households is
separate from this application.

application have been included in this release of Oracle Profitability Manager.
For full details please refer to the User Guide.
5.19.4. Features Not Included
5.19.4.1. Common Features

5.19.4.1.1. Formula ID
The formula ID is not supported in this release of Oracle Corporate
Performance Management applications.
5.19.4.1.2. Discoverer Integrator

Discoverer Integrator is no longer needed for support in producing seeded
Discoverer reports.
5.19.4.1.3. SQL Talk

The ability to review the data in a table or view is provided by the Data
Inspector therefore SQL Talk is no longer supported.
5.19.4.2. Oracle Profitability Manager Features

5.19.4.2.1. Activity-Based Budgeting
Activity-Based Budgeting functionality provided in ABM 11i is not
supported in this release of Oracle Profitability Manager.
5.19.4.2.2. Allocation Methods

Dimension Substitution – Dimension Substitution rules map costs between
accounts or cost centers. Organizational consolidation or subsidiary spin-
offs calculations are enabled by dimension substitution methods. This was
referred to as a leaf-to-leaf table ID (such as setting ORG1 to ORG2) in
version 4.5 of Performance Analyzer.
5.19.4.2.3. Spreadsheet Import Templates

Spreadsheet import templates previously available in ABM 11i is not
provided in this release. Data is available directly from the E-Business Suite,
or from external applications through the data loader processes.
5.19.4.2.4. Model
The ABM concept of model is no longer provided. Please note that other
components of the architecture, such as value sets, ledgers, data sets, and
dataset types support the ability to ‘model’ an organization.
5.19.4.2.5. Navigator
The Navigator Functionality from ABM 11i is not supported in Oracle
Profitability Manager.
5.19.4.2.6. TCA Integration

The integration of customer data from Oracle’s E-Business Suite TCA
Customer Model is not supported in this release.

5.20. Oracle Public Sector Budgeting
5.20.1. Overview
Oracle Public Sector Budgeting allows managers to efficiently and accurately

generate and maintain complete, multi-year capital and general operating budgets
that include budgeting for personnel services. It incorporates innovative Oracle
Workflow technology for decentralized budget distribution, submission and
approval routing.
5.20.2. Features
5.20.2.1. Enhanced Position Default Rules

The enhanced Position Default Rules includes a new set concept, changes in
default rules behavior and separation of FTE Allocation Profiles.
5.20.2.1.1. Default Rule Set

Default rules are grouped into a set, by which default rules are applied. This
feature allows users to prescribe only the relevant rules for a specific data
modification need.
5.20.2.1.2. Default Rules

The behavior of default rules has been changed. Previously, some default
rules were systematically determined to skip for occupied positions. For
example, default rules for Salary Assignments were skipped for occupied
positions. The enhanced default rules allow users to control whether the
rules are applied or not based on an overwrite option without regarding the
vacancy status of the positions. For example, default rules for Salary
Assignments with an overwrite option are applied to both vacant and
occupied positions and the rules will even overwrite any existing Salary
Assignments with those from the rules. This feature allows users to be in
control of their data transformation exercise for budgeting purposes. In
addition, users gain data transformation flexibility through the support of
more than one global Default Rule.
5.20.2.1.3. FTE Allocation Profiles

The FTE Allocation are separated from Default Rules and are displayed
under a new FTE Allocation Profiles window with its own navigation menu
by the same name. This separation better conveys the nature of FTE
Allocation Profiles in that they are never applied along with Default Rules
via the Assign Position Defaults concurrent program. Rather, they serve as
lookup values for position cost calculations.
5.20.2.2. Configurable Position Worksheet Function Security

Users are able to optionally disable the following functions from Worksheets
through Function Security configurations. Generally, these function exclusions

are used when some users need to have Line Item Worksheets access but don’t
need position data access.
• The Position button in the Worksheet Summary window that accesses

Position Worksheets
• The Position Details modal window accessed from the Tools-Positions top
menu from Line Item Worksheets
Users are able to optionally disable the following functions from Position
Worksheets through Function Security configurations. Generally, these function
exclusions are used when some users need to have write access on only certain
components of position data but not all components.
• The Create Position button in the Select Position window

• The Revise Projections button in the Select Position window
• The Attribute region in the Assignments tab in the Position Worksheet
window
• The Create Default Assignments button in the Assignments tab in the
Position Worksheet window
• The Salary sub-tab in the Assignments tab in the Position Worksheet window
• The Element sub-tab in the Assignments tab in the Position Worksheet
window
• The Distribution sub-tab in the Assignments tab in the Position Worksheet
window
• The FTE by Service Package tab in the Position Worksheet window
5.20.2.3. Posting Statistical Balance

Users who budget statistical amounts in Worksheets are able to post the statistical
budget amounts to Oracle General Ledger. Users are also able to revise
statistical budget amounts in Budget Revisions.

5.21. Oracle Public Sector Financials
5.21.1. Overview
Oracle Public Sector Financials extends E-Business Suite functionality and

provides the basis for an integrated financial management solution for public
sector agencies.
5.21.2. Features
5.21.2.1. Centralized and Configurable Accounting

this document.
Oracle Public Sector Financials is fully integrated with Oracle Subledger

Accounting.
5.21.2.2. Integrated Budgetary Control

Budgetary Control validation has been integrated with Oracle Subledger
Accounting. The validation of the accounting entries is also validated to ensure
it meets budgetary control requirements.
The Enhanced Funds Checker, previously an Oracle Public Sector International

feature, allows customers to have multiple funding budgets and budgetary control
setups for a single context.
5.21.2.3. Flexible Reporting and Inquiry

The data generated by the budgetary control and accounting reports is provided
to allow users to take full advantage of the features of XML Publisher and to
allow for flexible formatting.

5.22. Oracle Receivables
5.22.1. Overview
Oracle Receivables is an invoicing, payment, deduction, and revenue

management application that streamlines your order-to-cash process while
providing strong financial controls and strategic financial information.
5.22.2. Features
5.22.2.1. Revenue Management Enhancements

5.22.2.1.1. Partial Period Revenue Recognition
Partial Period Revenue Recognition enables the generation of revenue
recognition schedules that respect the start and end dates of contractual
obligations. Receivables’ delivers new, configurable accounting rules to
determine the treatment of revenue allocations for partial periods. For a
contract that goes into effect in the middle of the current accounting period,
revenue may be recognized for a partial, prorated amount.
5.22.2.1.2. Revenue Deferral Reasons

Event-Based Revenue Management allows users to define revenue deferral
reasons and corresponding revenue recognition events specific to their
business practices. The new feature supports deferral reasons for both goods
and services.
5.22.2.1.3. COGS and Revenue Matching

The matching principle of accounting states that each expense item related to
revenue earned must be recorded in the same accounting period as the
revenue it helped to earn. The new COGS and Revenue Matching feature
satisfies this matching principle by synchronizing the recognition of revenue
with the recognition of associated COGS. For example, if revenue is
partially recognized, the corresponding COGS is proportionately recognized.
5.22.2.1.4. Enhanced Payment-Based Revenue Recognition
With the changing regulatory environment, companies are turning to

payment based revenue recognition as the answer to meeting strict revenue
recognition rules for specific business transactions. In partnership with
Lease Management and Loans, the newly enhanced Event-Based Revenue
Management feature achieves payment based revenue recognition by
associating transaction lines with revenue impacting contingencies. Revenue
for impaired loans, evergreen-leasing agreements, and various miscellaneous
fees can now be automatically deferred at first and, then, recognized when
customers pay. This feature can be extended to any other feeder system
using transaction interfaces.
This feature was first released in Financials Family Pack G

5.22.2.2. Line Level Cash Applications
The Line Level Cash Applications solution allows the application of receipts to
specific transaction items such as individual lines, groups of lines, or tax or
freight buckets. From the receipt workbench, you are able choose whether to
allocate cash to the entire transaction or to apply amounts against specific items
according to the customer remittance.
5.22.2.3. Funds Capture Enhancements Uptake

Oracle Receivables uptakes Oracle Payments’ new funds processing
functionality, including the new customer bank accounts model, to support the
automated, electionic funds capture via Credit Cards, ACH, and bank-to-bank
transfers.
Oracle Payments stores and handles all payment related information for
automatic payment processing. This seamless integration provides better real-
time payment processing status information to Receivables users. For more
detail please see the Oracle Payments section of this document.
5.22.2.4. Refunds Enhancements

Oracle Receivables is fully integrated with Oracle Payables to deliver a seamless,
automated process to generate check and bank account transfer refunds for
eligible receipts and credit memos. To maintain strict security over refunds,
users may choose to leverage the approval workflow process available in Oracle
Payables.
5.22.2.5. Credit Card Error Handling

For a merchant, who wants to secure timely payment, it is vital to respond
promptly to credit card errors. The new Credit Card Error Handling feature in
Oracle Receivables provides a quick and efficient method to handle credit card
errors that occur during payment authorization and capture.
5.22.2.6. Credit Card Chargebacks

Cardholders can dispute credit card charges with their card-issuing bank and
when they do, the merchant is ‘charged back’ by the card's issuing bank. This
new feature allows merchants to reconcile balances accurately by recording
credit card chargebacks in the Receivables system as a specific activity against a
receipt.
5.22.2.7. Deduction Management

5.22.2.7.1. Open Receipt Defaulting Option
You now have the ability to choose whether you want to view open receipts
by default in the receipt applications apply to list of values and the search &
apply window or choose to keep them hidden.
5.22.2.7.2. Claim Information Sharing

Additional Claim information will be available in the Receipt Applications
and Search and Apply application windows, giving Receivables Clerks key
information to perform receipt-to-receipt applications of open claims.
These features were first released in Financials Family Pack G
5.22.2.8. Balance Forward Billing

Balance Forward Billing is an enhanced version of the existing consolidated
billing functionality for industries where customers are billed for all their account
activity on a regular, cyclical basis.
Balance Forward Billing provides the ability to setup cycle-based billing at the
account or account site levels, enable event based billing, and leverage user-
configurable billing formats provided by Oracle Bill Presentment Architecture.
5.22.2.9. Late Charges

Receivables delivers enhanced Late Charges functionality enabling the creation
of standard late charge policies that can be assigned to customer accounts or
account sites. Flexible policy configurations include multiple interest calculation
formulas, transaction and account balance thresholds, and currency-level rate
setups. Additionally, charges may be modeled as different document types such
as adjustments, debit memos, or interest invoices depending on the business
need.
5.22.2.10. Customer Standard User Interface Redesign

The Customer Standard form has been redesigned as an HTML-based user
interface to provide a more streamlined and intuitive customer data management
flow. Customer data entry is tightly coupled with data quality management tools
to maintain the integrity of customer data.

With enhanced Multi-Org Access Control feature in Oracle Receivables, access

to transactional data for multiple operating units is now available to users with a
single responsibility. By leveraging this feature in a shared services
environment, companies can achieve significant savings in operating costs
without compromising data security.

5.22.2.12. E-Business Tax
Oracle E-Business Tax is a new infrastructure for tax knowledge management
and delivery using a global system architecture that is configurable and scalable
for adding country specific tax content. As the single point solution for
managing transaction-based tax, Oracle E-Business Tax uniformly delivers tax
services to Oracle E-Business Suite business flows through one application
interface. For more details, please see the Oracle E-Business Tax section of this
document.
In Oracle Receivables, item lines automatically generates one or more tax lines
depending on tax jurisdiction and setup.
5.22.2.13. Legal Entities

The new Legal Entity architecture provides the ability to model an enterprise’s
legal organizational structure and define rules and attributes specific to legal
entities. With adoption of the Legal Entity architecture, Oracle Receivables
captures transactional data within the context of legal entity owning this data,
thus enabling better, more streamlined statutory compliance.
In Oracle Receivables, Legal Entities is visible explicitly on receivables'

transactions.

this document.
Oracle Receivables leverages Oracle Subledger Accounting to provide detailed,

fully auditable accounting representations of Receivables transactions. Via a
flexible rules-based methodology, users can easily create and modify their
accounting policies, rapidly implement changing external or regulatory
requirements with a minimum of disruption, and create multiple representations
of transactions to meet fiscal and management reporting needs simultaneously.
5.22.2.15. Receivables Reconciliation Enhancements

Easily reconcile your receivables using enhanced reporting. Quickly match your
transactional data to your accounting data. Highlight the possibility of incorrect
set up with newly added exception reporting that suggests potential reconciling
items. Reconcile Receivables to the General Ledger using one flexible report
that automatically compares account activity by GL account. Audit your balance
sheet accounts in Receivables with a cumulative balance report that lists details
making up the account balance.

5.22.2.16. Additional Bills Receivable Reference Field

A new reference field will be added to the Bills Receivable workbench to capture
additional information regarding your Bills Receivable.
5.22.2.17. Collections Workbench Obsolescence

The Collections Workbench module in Oracle Receivables is obsolete in this
release. Like functionality is provided by Oracle Advanced Collections,
including customer collections interactions and correspondences, transaction
processing, and dunning activities as well as additional features. A migration
white paper and scripts will be provided to Receivables customers moving to
Oracle Advanced Collections. For more information see the Oracle Advanced
Collections section of this document.
5.22.2.18. Bills of Exchange Obsolescence

The Bills of Exchange feature is obsolete and replaced by the Bills Receivable
feature. The Bills Receivable feature provides a comprehensive solution to
managing the entire life cycle of bills receivable: creation, acceptance,
remittance, updates, history, and closing.
5.22.2.19. Trade Accounting Obsolescence

The Oracle Trade Accounting feature is obsolete and replaced by Oracle’s
Deduction Management solution. The Deductions Management solution is
delivered in partnership between Oracle Receivables, Oracle Trade Management,
and Oracle Credit Management products and provides a robust and efficient way
to handle customer deductions and overpayments. A Deductions Management
whitepaper is currently available on Metalink.
5.22.2.20. AP/AR Netting

The matching of open receivables and open payables is automated. You are now
able to determine whether you or your trading partner has a greater balance
outstanding and update your books, collect payments or make payments
accordingly.
5.22.2.21. Golden Tax Adaptor for Mainland China
Laws in the People’s Republic of China require the use of a government certified
tax software called ‘Golden Tax’ for VAT calculation, statutory tax reporting and
generating and printing VAT invoices. Golden Tax Adaptor enables Oracle’s
customers in China to interface their invoices, credit memos and debit memos
from Oracle Receivables to the Aisino Golden tax software in order to calculate
VAT, generate and print VAT invoices and report tax to the Chinese Tax
authorities. The user can use discrepancy and mapping reports to audit and

reconcile the discrepancies in data between Receivables invoices and Aisino
generated VAT invoices.
Aisino (航天信息股份有限公司)is the main supplier of Golden Tax software in

China.

5.23. Oracle Transfer Pricing
5.23.1. Overview
Oracle Transfer Pricing allows Financial Services Institutions to measure and

manage their interest margin. With interest margin being the primary driver in
determining profitability, Oracle Transfer Pricing is commonly used together
with Oracle Profitability Manager by Financial Services Institutions looking to
measure and report on account, customer, product or any other dimensional
views of profitability.
The following important new features specific to the Oracle Transfer Pricing
application are included in the12.0 release, in addition to the robust new features
and functionality common across the Oracle Enterprise Performance Foundation.
For details of the Oracle Enterprise Performance Foundation features see the
Oracle Enterprise Performance Foundation section in this document.
• Enhanced Multi-Currency Support
• Single Assumption/Processing Dimension (Product Leaf)
• Node Level Assumptions
• Conditional Assumptions
• Enhanced Ledger Migration Dimensionality
• Cash Flow Edits Administration
• Interest Rate Code Administration
• Seeded Reports
5.23.1.1. Enhanced Multi-Currency Support

The following three new features in Release 12.0 make it easier and more
efficient for users to generate results in a multi-currency environment:
• The ability to define transfer pricing and prepayment methodology at the

intersection of product and currency. The system supports the generation of
transfer rate results for multiple currencies with different sets of
methodologies per currency in a single execution
• The ability to generate charges/credits for funds based on entered and
functional currency. In previous releases, results were migrated to the ledger
table in local currency only. In Release 12.0, users have the option of
converting charge/credit amounts to the functional currency designated for
the ledger being processed
• The ability to define Transfer Pricing Option Cost assumptions on multiple
valuation yield curves. In Release 12.0, users can specify a different risk free
interest rate yield curve for each currency available for processing.
5.23.1.2. Single Assumption/Processing Dimension (Product Leaf)

Consistent with efforts to implement a single, integrated solution and offer quick
implementation ‘out-of-the-box’ services to our clients, Oracle Transfer Pricing
assumption definitions are based on a new, single dimension, the Line Item
dimension.

Node Level and Conditional Assumptions functionality, discussed in the
following sections are key new features in Release 12.0 to assist clients in their
use of a single dimension for Business Rule assumption creation and processing.
5.23.1.3. Node Level Assumptions

In Release 12.0 users are able to define their transfer pricing and prepayment
methodologies based on a new hierarchy-based assignment feature. Children of
parent nodes on a hierarchy automatically inherit the methodology assumptions
defined for the parent node. Using a properly constructed hierarchy, the amount
of work previously required to define a set of assumptions can be significantly
reduced.
5.23.1.4. Conditional Assumptions

Conditional Assumptions incorporate IF-THEN-ELSE logic for defining transfer
pricng and prepayment assumptions using key attributes of the underlying data
being processed (e.g., term to maturity, origination date, repricing frequency.)
The Oracle Transfer Pricing application segregates portfolios of instruments

based on common characteristics and assigns a certain assumption to each of the
groupings. For example, the user can slice a portfolio of commercial loans based
on repricing characteristics and assign one transfer pricing method to the fixed-
rate loans and another to the floating-rate loans.
The combination of Conditional Assumptions, with the ability to apply transfer

pricing methodologies at any hierarchical level in Release 12.0, make the
implementation process more efficient and eliminate the need to create and
maintain separate dimension values.
5.23.1.5. Enhanced Ledger Migration Dimensionality

Oracle Transfer Pricing provides greater flexibility in the process of migrating
transfer pricing results from customer account tables to the management ledger
table and generating corresponding charges, credits and option costs included in
profitability measurements. Users are able to specify migration requirements for
a combination of an extended list of dimensions, including up to 10 user-defined
dimensions. This feature enhances existing capabilities for profitability reporting
across organizational, product, channel, geography and user defined dimension
performance measurement results.
5.23.1.6. Cash Flow Edits Administration

Seeded cash flow edits used for cleansing data prior to its submission for
processing in the Oracle Transfer Pricing cash flow engine are launched directly
from within the application. In Release 12.0, Oracle Transfer Pricing users are
no longer required to use a separate application, or wait for another, authorized
party to run that separate application, to perform this critical data cleansing
activity. Production cycles are more efficient as a result.

5.23.1.7. Interest Rate Administration
The administration of market interest rates and transfer rates, as well as the
loading and maintenance of corresponding historical rate values is performed
directly within the Oracle Transfer Pricing application in Release 12.0.
Historical rate information is loaded manually or through use of Web ADI, a new
feature that provides an Excel spreadsheet-based interface capability for the
import or export of data.

application have been included in this release of Oracle Transfer Pricing. For full
details please refer to the User Guide.

5.24. Oracle Treasury
5.24.1. Overview
Oracle Treasury is a complete solution for managing global treasury operations

with improved efficiency, profitability, and control.
5.24.2. Features
5.24.2.1. Cash Pooling Across Legal Entities

Cash Pooling, in general, is available to Oracle Cash Management users and that
feature is described in much greater detail in that section of this document.
Oracle Treasury provides supplemental functionality that may be necessary for
some users. Specifically, Oracle Treasury allows inclusion of the fund transfers
generated by the physical cash pool activity into the intercompany loans so that
the balances and interest can be tracked between internal parties (aka ‘In House
Banking’).
Users can have physical cash pool transactions created in Oracle Treasury rather
than Oracle Cash Management. In this case, Oracle Treasury automatically
creates both bank account transfers within a single legal entity as well as
intercompany funding transactions across legal entities. Intercompany funding
transactions also maintain running loan balances between internal parties and
interest rate structures are used to calculate interest income and expense. With
this configuration, payment processing and accounting is managed via Oracle
Treasury.
5.24.2.2. Foreign Exchange Hedge Effectiveness and Accounting Under IAS

39 and FAS 133
This feature completes the breadth of functionality needed to support foreign
exchange forward hedging of Payables and Receivables as defined by IAS 39
and FAS 133. This new feature expands existing functionality that already allows
users to view real-time Payables and Receivables exposures, as well as designate
and track related foreign exchange forward hedges.
Oracle Treasury now also automatically calculates the retrospective effectiveness

of these hedges, comparing historical gains or losses of the foreign exchange
forward contracts to the offsetting losses or gains associated with the underlying
exposures being hedged. Oracle Treasury allocates the effective and ineffective
portions of these revaluation amounts and automatically generates proper
accounting entries under IAS 39 and FAS 133. This feature also delivers the
ability to audit prospective effectiveness testing results, as well as reclassify the
effective portion, or deferred, gains and losses back into current period earnings
when the underlying exposure is realized.

5.24.2.3. Automatic Bond Rate Resetting
This feature provides the ability to automatically reset floating rates for bonds
based on benchmark rates like LIBOR as well as margin adjustments assigned at
the bond issue level. Users are able to schedule this program to run daily or run it
on an ad hoc basis. It behaves like existing reset functionality for other floating
rate instrument types like Wholesale Term Money and Interest Rate Swaps. All
bond coupons matching the program parameters, assigned to floating rate Bond
Issues, and passing a set of validations have their coupon rates reset
automatically based on latest market data and the associated coupon amounts is
recalculated for cash flow reporting and accounting purposes.
5.24.2.4. Bank Account Update Program

Treasury long-term investment or debt instruments often require periodic cash
flows until final maturity, which may be many years into the future. The bank
accounts expected for payment processing are required input during the original
deal entry for positioning and forecasting purposes. However, in practice, this
bank account information may change throughout the life of the deal for any
number of reasons. With this new program, it is possible for users to make mass
updates to expected settlement accounts in the future rather than requiring users
to make these adjustments on a case by case basis during individual settlement
processing.
5.24.2.5. Inter-Account Transfer Enhancements

Inter-Account Transfers has been enhanced in several ways. Users are able to
track not only the effective transfer date but also the date when the transfer was
arranged. Also, user-defined Descriptive Flexfields are available at the individual
Inter-Account Transfer level to capture extended information for reporting
purposes. Finally, users have an option to include Inter-Account Transfers in the
Transaction Validation process, similar to all other deal types. A new system
parameter determines if these internal transactions require validation before they
can be authorized for settlement.
5.24.2.6. Bank Account Model

Internal bank accounts in Oracle Treasury are defined and managed through a
single access point, making set up, maintenance, and control much easier and
more reliable with this new feature. Please refer to the Bank Account Model
feature description in the Oracle Cash Management section of this document for
more information.
5.24.2.7. Bank Account Balances

Management of bank account balances, including Interest Set Offs for notional
balances, is enhanced and migrated to Oracle Cash Management. Please, refer to
the Bank Account Balances, and Cash Pooling feature descriptions in the Oracle
Cash Management section of this document for more information.

5.24.3. Terminology
Term Definition
LIBOR LIBOR stands for the London Interbank Offered Rate and is
the rate of interest at which banks could borrow funds from
other banks, in marketable size, in the London interbank
market. LIBOR is also widely used around the world as a
benchmark rate for a variety of financial instruments.

5.25. Oracle U.S. Federal Financials
5.25.1. Overview
Oracle U.S. Federal Financials extends E-Business Suite functionality and

provides the basis for an integrated financial management solution for U.S.
Federal agencies.
5.25.2. Features
5.25.2.1. Centralized and Configurable Accounting

this document.
Oracle U.S. Federal Financials is fully integrated with Oracle Subledger

Accounting.
5.25.2.2. Integrated Budgetary Control

Budgetary Control validation is integrated with Oracle Subledger Accounting.
The validation of the accounting entries is also validated to ensure it meets
budgetary control requirements.
The Enhanced Funds Checker, previously an Oracle Public Sector International

feature, allows customers to have multiple funding budgets and budgetary control
setups for a single context.
5.25.2.3. Flexible Reporting and Inquiry

The data generated by the budgetary control and accounting reports is provided
to allow users to take full advantage of the features of XML Publisher and to
allow for flexible formatting.

6. Daily Business Intelligence
6.1. Daily Business Intelligence (DBI) for Compliance

DBI for Compliance 8.0 is a new product releasing on the DBI framework. In
this release, the focus is on financial statement certification dashboard and its
relevant reports. It provides the top-level summary of certifications for signing
officers. Under Sarbanes Oxley Section 404, issuer must provide ‘an assessment,
as of the end of the issuer's fiscal year, of the effectiveness of the internal control
structure and procedures of the issuer for financial reporting’. This is the
certification functionality provided in Oracle Internal Controls Manager.
As the signing officers, users of this dashboard can view the certification status
and progress, as well as issues and remedial actions all at once. With further
interest, they can drill to the supporting reports for details. Continue drilling from
reports to transaction pages allows them to take any immediate remedial actions,
such as filing a remediation for a finding in the certification.
6.1.1. Overview
DBI for Compliance has a new Financial Statement Certification dashboard. This
dashboard provides an overview of the company’s financial and process
certifications. DBI for Compliance creates this new dashboard to provide
information on certification status and progress:
Financial Statement Certification
This dashboard provides links to reports for more in-depth analysis of the
certification. These links include those on Key Performance Indicator (KPI)
titles, region titles, and table values.
6.1.2. Features
6.1.2.1. Financial Statement Certification Dashboard

Users are able to investigate problem areas and their corresponding solutions
using new reports and Key Performance Indicators (KPIs). The Financial
Statement Certification dashboard contains new KPIs to enable users to see the
number of open remediation and findings for any given period, certification type,
or certification.
Users are able to further analyze trouble areas across certification type or
certification by choosing different parameters on the dashboard. This dashboard
also provides further drill capability to the following detail reports:
• Findings Summary
• Remediation Summary
• Issue Summary
One important breakdown for signing officers to determine whether or not they
should sign off a statement is the one for significant account evaluation. With the

pie chart, users are able to see the effective ones percentage in a graphical
representation, in contrast to the not evaluated portion and the ineffective one.
Users are also able to utilize the tabular representation of evaluation data to drill
to troubled areas per account across certifications.
You can use the links in the Financial Statement Certification dashboard to view
the following reports:
• Significant Account Evaluation Status
• Signification Account List
Users can monitor certification progress and status using the certification related
Key Performance Indicators (KPI), graphs, and tables. The two certifications that
this dashboard report on are Business Process Certification and Organization
Certification.
Signing officers can view not only the breakdowns of certification results with
the graphical representation, but also the troubled areas by different organizations
and processes.
Drilling on the numbers on the tables takes users to the interested organization or
process with more detailed analysis possible.
6.1.2.2. Open Remedial Action Summary

This report shows open remedial actions across engagements. Users can choose
to view a subset of the data by the following parameters:
• Quarter
• Significant Accounts
• Organizations
• Processes
• Reasons
• Priorities
• Phases
The report shows data by 3 graphs stating the counts of open findings and
remediation, as well as aging information for these two objects respectively. The
table for this report shows more details on open, past due (if system date > need
by date), Late % of Open, average days that these objects have been opened, and
age breakdown into different user definable age buckets.
6.1.2.3. Significant Account Evaluation Result

This report shows different account evaluation results in a pie chart and a table.
Users can choose to view one certification or across certifications. Clicking on
the numbers of evaluation takes the user to the ‘Significant Account Evaluation
Summary’ report.
6.1.2.4. Significant Account Evaluation Summary

This report shows evaluation results and trouble areas for different objects by
significant accounts. Data are presented through 3 horizontal stack bar graphs

and a comprehensive table. Users can drill from the results table to various list
reports, such as risk list report.
6.1.2.5. Organization Certification Result

This report shows different organization certification results in a pie chart and a
table. Users can choose to view one certification or across certifications.
Clicking on the numbers of certification results takes the users to the
Organization Certification Summary report.
6.1.2.6. Organization Certification Summary

This report shows certification results and trouble areas for different objects by
organizations. Data are presented through 3 horizontal stack bar graphs and a
comprehensive table. Users can drill from the results table to various list reports,
such as risk list report.
6.1.2.7. Process Certification Result

This report shows different process certification results in a pie chart and a table.
Users can choose to view one certification or across certifications. Clicking on
the numbers of certification results in the table takes the users to the Process
Certification Summary report.
6.1.2.8. Process Certification Summary

This report shows certification results and trouble areas for different objects by
processes. Data is presented through 3 horizontal stack bar graphs and a
comprehensive table. Users can drill from the results table to various list reports,
such as risk list report.
6.1.2.9. List Reports

This release contains various list reports for different objects. This enables
drilling to transaction functionality. The following list reports are provided:
• Risk List Report
• Control List Report
• Audit Engagement List Report
• Organization List Report
• Process List Report
• Significant Account List Report
6.1.2.10. Compliance Environment Change

One important variable to be considered when looking at certification results is
the stability of the compliance environment. DBI for Compliance presents
changes of different objects that are related to the compliance environment.
These changes include updating, addition, and deletion of any of the following
objects:
• Processes
• Risks
• Controls
6.1.2.11. View Significant Account Details
Users can click on the Significant Account List report links available in the
dashboard for easier access to the list report. This report provides details of
significant accounts that are of users’ interest by choosing different parameters.
They can use this report to view details of account without going into the
application. The report could be used as an action list for the signing officers to
follow up on.
6.1.2.12. Manage Closing Performance Findings and Remediation

DBI for Compliance uses the Business Intelligence Bucketing functionality to
categorize aging on different open objects, such as findings and remediation.
Users can change the age bucket definitions, including names and ranges.
6.1.2.13. Drill and Pivot the Report Layout

All DBI for Compliance reports use the Performance Management Viewer
(PMV) Drill and Pivot feature. This feature enables users to drill down to a
smaller set of data, at the same time as they pivot the report to view the data by a
different category.
For example, if user runs the Open Remedial Actions Summary report from the
Open Findings KPI, it initially displays a summary of open findings and
remediation by priority. If the user selects the drill and pivot icon at the
beginning of a priority’s row, it will provide a list of pivot options, such as Phase
and Reason, for which the data will be reported by. If the user selects Reason, for
example, the report will change to display Reason in the View By parameter, and
the selected priority in the Priority parameter. User can then see the list of open
remedial actions of high priority by different reasons..
User can continue to drill and pivot the report data to pinpoint a specific set of
data and analyze it against your selected criteria.
The following reports support Drill and Pivot:

• Open Remedial Actions Summary
• Significant Account Evaluation Result
• Organization Certification Result
• Process Certification Result
• Compliance Environment Change Summary

6.2. Daily Business Intelligence for Financials
6.2.1. Overview
• This release enhances the offering of Oracle Financials Intelligence by

introducing four new out-of-the box reporting solutions: Receivables and
Collections Management, Profit and Loss Analysis, Expense Analysis, and
Funds Management.
• Receivables and Collections Management is for analyzing a company’s

Receivables and Collections operations efficiency. It provides Receivables
and Collections managers with key performance indicators and supporting
reports that enable them to identify, monitor and resolve the issues associated
with the efficiency of their departments’ operations. Improved receivables
and collections operations result in more efficient use of the company’s cash,
which impacts the company’s bottom line.
• Profit and Loss Analysis is for evaluating the information related to a

company's revenue, cost of goods sold, operating expenses, gross margin and
operating margin. The dashboard features a company/cost center/account-
oriented view of the company's key profit and loss activity.
• Expense Analysis goes beyond Profit and Loss Analysis, providing a more
detailed analysis of expenses, including additional drill downs to Fixed
Assets, Payables, Internet Expenses and Purchasing.
• Funds Management dashboard provides expense analysis that is specifically

targeted for the public sector.
In addition, existing dashboards have been enhanced;
• Several new reports have been added to the Payables dashboards
• New features have been introduced to the Profit and Loss and Expense
Management dashboards
6.2.2. Features
6.2.2.1. Receivables and Collections Management

With the information provided by the Receivables Management and Status
Dashboards, managers can easily determine the most pressing items and clarify
the day-to-day agenda for their departments. With up-to-date information about
customers’ activities, Receivables and Collections managers can direct their
departments to resolving past due accounts before they become a serious
problem. The supporting reports provide additional information about delinquent
customers enabling collections managers and clerks to identify the most effective
collection strategies.

DBI for Receivables empowers managers by enabling the analysis of key
performance indicators (“KPIs”) across multiple dimensions, such as time,
operating unit, customers, and collectors. The KPIs available out-of-the-box
include; Days Sales Outstanding, Average Days Delinquent, Open Receivables
and Past Due Receivables Amount, and Unapplied Receipts Amount. Managers
can evaluate the performance of their organizations and discover systemic
processing inefficiencies. In addition they can leverage valuable insight to
evaluate the productivity of individual collectors.
The increased visibility enables Receivables and Collections managers to reduce

the time of operational problems discovery and resolution, and therefore, increase
the effectiveness of their departments. It also provides valuable insight into the
state of customers’ receivables payment patterns enabling Credit Managers to
formulate Credit Policies that would prevent undesired impact on companies
bottom-line.
6.2.2.2. Profit and Loss Analysis

The Profit and Loss Analysis dashboard targets financial analysts and line
managers who are responsible for supporting and analyzing revenue and
expenditures for particular cost centers (e.g. facilities, operations and shipping)
and company entities (e.g. geographic locations) across different ledgers. It
focuses on analyzing and managing the large volume of journals posted to
General Ledger. Profit and Loss Analysis Dashboard allows financial analysts
and managers to dissect revenue, cost of goods sold and operating expenses by
company, cost center, accounts, and ledger, allowing the users to thoroughly
investigate activity down to the transaction line level. Profit and Loss Analysis
differs from the currently available Profit and Loss Dashboard, which focuses on
providing executives a broad view by Line of Business or by Manager.
Profit and Loss Analysis features a company and cost-center based security
model. It offers expanded drill capabilities into revenue and expense sources
down to General Ledger, Payables, Fixed Assets, Internet Expenses, and
Purchase Orders. In addition, a user-defined dimension can be assigned to
additional segment in the chart of accounts, providing the users with a finer grain
of control.
With Profit and Loss Analysis, line managers and analysts are able to investigate
and resolve issues concerning operational income and spending and spot
anomalies as they occur during the financial period.
6.2.2.3. Expense Analysis

Expense Analysis dashboard provides up-to-date information on a company's
operating expenses, and features a company/cost center/account-oriented view of
the company's expense activity. It complements the Profit and Loss Analysis
Dashboard by providing a more detailed analysis of expenses.
Expense Analysis targets company's financial analysts and line managers, and
focuses on analyzing and managing the large volume of expense journals posted
to General Ledger. Expense Analysis differs from Expense Management, which
focuses on providing executives a broad view of expenses incurred by line of

businesses or by managers, and on allowing managers to easily monitor and
control expenses he/she is responsible for.
Similar to Profit and Loss Analysis, Expense Analysis features a company and
cost-center based security model. The drills into Payables, Fixed Assets, Internet
Expenses, and Purchase Orders, as well as the ability to dissect expenses by
company, cost center, accounts, and ledger, allow the user to thoroughly
investigate expense activity down to the transaction line level. Finally, a user-
defined dimension can be assigned to additional segment in the chart of accounts,
providing the user with a finer grain of control when viewing the expenses.
6.2.2.4. DBI for Public Sector Financials

The Funds Management dashboard provides up-to-date information on available
funds, budgets, encumbrances and expenses, and features a fund/cost center view
of the institution’s activities.
Funds Management targets fund and cost center managers in state and local
government and higher education institutions. The features included in Funds
Management include a fund and cost-center oriented security model and two
user-defined dimensions which can be assigned to additional segments in the
chart of accounts, providing the user with a finer grain of control when viewing
their data.
The Funds Management dashboard offers drill down to following reports:
6.2.2.4.1. Budget Trend by Account Detail

The Budget Trend by Account Detail report provides the user with the ability
to view budgets, budget trends by rolling 4 quarters or 3 months, and budget
adjustments.
6.2.2.4.2. Budget Journal Entry Details

The Budget Journal Entry Detail report provides the user with details around
a budget journal.
6.2.2.4.3. Encumbrance Trend by Account Detail

The Encumbrance Trend by Account Detail report provides the user with the
ability to view encumbrance trend by detail values of the balancing, cost
center and natural account chart of accounts segments.
6.2.2.4.4. Encumbrance Journal Entry Details

The Encumbrance Journal Entry Detail report provides the user with the
ability to view details around an encumbrance journal. When applicable, the
Document Number column supports an external drill to the purchase order
document providing the user the ability to view the actual order in detail.
6.2.2.5. DBI for Payables

6.2.2.5.1. Past Due Invoices Report
This report provides a summary of the past due invoices across all suppliers
and all operating units. The report allows drills down to the invoice detail

level and provides the user a quick overview of current unpaid invoices that
are past due.
Additional drill downs enable further investigation into what is causing these
invoices to be past due. The information based on system date and doesn't
use As Of Date parameter. The report displays information such as the
invoice number, type, date, entered date, due date and past due days;
transaction currency and amount; invoice amount and past due amount; hold
information; discount information; and terms
It is accessible from the Payables Management and the Payables Status

dashboards.
6.2.2.5.2. Invoice Lines Detail Report with Drilldown to Purchasing

The Invoice Lines Detail report offers functional users the ability to see the
invoice lines as they are presented on the original Supplier Invoice. It makes
it easier for DBI for Payables users to follow up with the supplier as they are
looking at the same information as is available to the Supplier. This report
can be accessed from both Payables Management and Payables Status
dashboards.
In addition, Invoice Lines Detail report offers the drill to Purchase Order
details. If a single Purchase Order is associated with the invoice line, the user
is able to click on the Purchase Order number to see the Purchase Order. If
multiple Purchase Orders are associated with the invoice line, the word
‘Multiple’ appears in the column.
6.2.2.5.3. Enhanced Incremental Load Performance

The incremental request for the Payables Management and Payables Status
dashboards has been enhanced to accelerate the performance.
6.2.2.6. Budget/Forecast Import from General Ledger

This feature allows the flexibility of importing budgets and forecast into the DBI
for Financials Intelligence dashboards like Profit and Loss, Expense Management
and Expense Analysis.
Now, the user has the ability to import budgets and forecasts that are stored in
General Ledger. If budget and forecast are stored in external systems, the user
can still use the existing functionality of WebADI interface to import the budgets
into the dashboards.
6.2.2.7. Role Based Security for Profit & Loss and Expense Management
Dashboards
Role-based security provides managers with the ability to grant another
employee, as a proxy, limited access to a subset of secured information in DBI
for Financials.
This functionality is available only for dashboards that are secured by Manager
(for example, Profit and Loss, Expense Management). Managers can access this
functionality using the Delegate link at the top of the dashboard.

6.2.2.8. User Defined Dimension
A new dimension has been introduced to allow companies to map to any segment
in their chart of accounts. This enables the user to view and filter their expenses
by a fourth segment, in additional to the segments that are already supported by
DBI for Financials Intelligence like company, cost center, and natural account.
6.2.2.9. DBI for Financials Back-End Enhancements

To improve the consistency with the underlying transactional modules, Daily
Business Intelligence (DBI) for Financials has uptaken several new Release 12.0
features from the Financials transaction applications.
• AP Invoice Lines
• Ledger Architecture
• Subledger Accounting
• Revenue Management Enhancements

6.3. Financials Intelligence
6.3.1. Overview
The BIS End User Layer (EUL) has been updated to be compatible with the new
Release 12.0 data model changes from the Oracle Financials transaction
applications.
The Business Intelligence System (BIS) reports from previous releases are
obsolete.

7. Customer Data Management
7.1. Customer Data Hub

7.1.1. Overview
The largest single area of the Customer Data Management (CDM) product
family, this area covers not only the products Customer Data Hub and Customer
Data Spoke, but also the underlying data model, Trading Community
Architecture (TCA). Therefore, this section is important not only for Customer
Data Hub & Spoke customers, but also for customers of any E-Business Suite
application(s) that uses the TCA data model.
7.1.2. Features
7.1.2.1. Tax Geography Hierarchy Setup UIs

User interfaces are provided to create and manage a foundation of geographies
and geographical hierarchies for the purpose of tax validation. Once the
foundation of geographies is established, tax administrators can define flexible
zones without impacting the underlying geographies themselves.
7.1.2.2. Multi-Org Access Control (MOAC)

The Multi-Org Access Control initiative allows application users to access to
multiple operating units via a single responsibility. Changes have been made in
the following areas to support this functionality:
• TCA org striped views
• TCA Public API’s
• Customer Merge
• Customer Import
• Customers Online Transactions Viewer
• Customers Online Accounts
• Account Layer CPUI components
This feature provides enhanced support for ‘Shared Service Center’ business
models.
7.1.2.3. Tax and Geography Validation

This feature provides an equivalent level of functionality to the existing tax-
based address validation solution that will be obsolete in release12.0. It provides
a real-time address-validation solution based on tax jurisdictions, plus a new
geography validation solution based on a manually entered geographical
hierarchy. The solution includes validating the address both while it is being
entered in the UI and at the API level. Based on the nature of tax data, this
feature only validates an address down to the postal code level and is not
intended to provide street level validation, nor postal delivery validation.

7.1.2.4. Data Quality Management Enhancements
The Data Quality Management (DQM) tool delivers enhanced administration
interfaces with a new level of audit detail and maximized out-of-the box
performance. A new overview page provides relevant and timely information
about the status of important DQM processes and setups, while more consistent
attributes and transformations naming conventions improve the users experience.
Sample DQM structures including word replacement lists, attributes,
transformations and match rules, have been enhanced to improve matching
effectiveness and performance for those customers that choose to leverage these
structures directly out-of-the-box. A new set of diagnostic reports have been
introduced to give users access to DQM setup information including
configuration settings, performance of activities like staging, as well as health
indicators of key setup entities such as the indexes. Lastly, a new DQM public
API is available for integration into external source applications for performing
real-time duplicate checks against the core Customer Data Hub repository.
7.1.2.5. Customer Data Librarian Enhancements

Customer Data Librarian application users are able to schedule the submission of
System Duplicate Identification Batches, and additionally set them to be
recurring. New business events have been introduced for the Party Merge and
Account Merge features as a notification to spoke applications that a merge
between identified parties has occurred. New API services are also available to
directly submit merge requests to the Data Librarian application or extract merge
details, ensuring that duplicate identification efforts can be extended to end users
outside of the eBusiness Suite.
7.1.2.6. Integration Services

Oracle Customer Data Hub (CDH) Integration Services are targeted at the
integration developer responsible for enabling bi-directional synchronization of
customer information between the Oracle Customer Data Hub and related Data
Spokes. These services include the following modules:
7.1.2.6.1. Foundation
The Integration Services Foundation provides a business object-based
abstraction of the Oracle Trading Community Architecture (TCA) to soften
the learning curve associated with implementing a customer data integration
initiative using Oracle CDH. The foundation includes a set of seventeen (17)
business objects that encapsulate customer information in the form of four
(4) composite objects—including person, organization, person customer and
organization customer—as well as thirteen (13) granular objects—including
organization contact, address, phone number, customer account, and others—
to encapsulate the TCA schema in the form of database objects.
In addition, the foundation includes PL/SQL API’s that offer the ability to
create, update, or save these business objects to CDH with a single API call,
abstracting away the complexity of the data model in favor of more easy to
understand object-oriented interface. Furthermore, the foundation also
delivers API’s to manage source system identifiers for business objects by
encapsulating more granular interfaces based on business object definitions,
allowing spokes to cross-reference their own object identifiers with CDH.

7.1.2.6.2. Business Events
The Business Events solution addresses the need for outbound events to alert
spoke systems of operations performed upon business objects within the
CDH. This solution complements the existing set of TCA business event
callouts registered within Oracle Workflow by introducing events for
operations performed upon each of the following business objects: Person,
Organization, Person Customer, and Organization Customer. These business
events are raised to alert subscribing spoke systems of any creations or
updates to the business objects within CDH. Integration developers may
write subscriptions against these events within Oracle Workflow to automate
integration business processes essential to synchronize customer data
between the hub and all related spoke systems.
7.1.2.6.3. Business Object Extraction

The Business Object Extraction solution provides integration developers two
separate sets of object extraction procedures. A generic set of object
extraction API calls may be invoked by passing an identifier for a specific
business object type to receive a fully populated business object in return.
Generic ‘get’ procedures are available for each of the available business
objects within the CDH Integration Services Foundation. In addition to the
generic extraction procedures, event-specific object extraction API’s that act
in conjunction with the above-mentioned Business Events are also provided.
Integration developers may write subscriptions to invoke these procedures
whenever business events occur to extract and publish business objects to
middleware or spoke systems. The event-specific procedures return either
newly created business objects or modified portions of existing business
objects to facilitate customer data integration between CDH and spoke
systems.
7.1.2.7. TCA Bulk Import Enhancements

TCA Bulk Import provides improved performance by reducing the post
processing time required by import batches. Customer Data Librarian users also
have new features to generate import batches from directly within the Data
Librarian UIs and dynamically monitor the ongoing progress of import batches.
7.1.2.8. New Workflow Synchronization

TCA currently uses the Oracle Workflow Business Event System and back-end
code to synchronize person information stored in the Workflow Directory
Services (WFDS). This release delivers enhancements to WFDS views,
improvements to performance and improvements to the synchronization code.
Support for an obsolete CRM User Hook has also been removed.

7.2. Customer Data Librarian
7.2.1. Overview
Oracle Customer Data Librarian provides companies with the ability to establish
and maintain a highly accurate, duplicate free customer database. It consists of a
native suite of tools and easy to use HTML user interfaces specifically designed
for Information Quality (IQ) professionals. Oracle Customer Data Librarian’s
broad array of data management features help consolidate customer data, identify
and resolve duplicate data, and enrich customer data with content from third-
party sources to make it even more valuable. Customer Data Librarian is a must-
have tool for any E-Business Suite or Customer Data Hub instance.
For Customer Data Librarian, the 12.0 release is focused on the shared service
support.
7.2.2. Features

The Multi-Org Access Control initiative allows application users access to
• Customer Merge
• Customer Import
This feature provides enhanced support for ‘Shared Service Center’
business models.

7.3. Customers Online
7.3.1. Overview
Oracle Customers Online is a Web-based application within the Oracle E-

Business Suite that provides a comprehensive view into a company's central
repository of customer data. Oracle Customers Online leverages the flexibility
and scalability of the Oracle Trading Community Architecture (TCA) to store all
customer data. It allows users to comprehend the highlights of critical customer
information at a glance as well as access additional details with further
navigation.
For Customers Online, the R12.0 release is focused on the shared service support
for the existing features and the introduction of a new product called Citizen Data
Hub specifically designed to address the citizen data integration needs of public
sector agencies.
7.3.2. Features

The Multi-Org Access Control initiative allows application users access to
• Customer Merge
• Customer Import
This feature provides enhanced support for ‘Shared Service Center’ business
models.

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RELEASE CONTENT DOCUMENT

Prepared by Financials Product Management Team

Last Updated: 11 December 2006

Copyright © 2006 Oracle Corporation

R12 Release Content Document, Rev. 30 ii

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This document in any form, software or printed matter, contains proprietary

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2.1. Purpose of Document

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In addition to these initiatives, we’ve included many more enhancements and

In Release 12.0, by contrast, users can be assigned to multiple operating units,

User access to multiple operating units is called ‘Multi-Org Access Control’,

R12 Release Content Document, Rev. 30 Page 3 of 13

Ledger and Ledger Enterprise Performance

• Data Segmentation AND

Accounting for subledger transactions at the event in a standard manner with a

R12 Release Content Document, Rev. 30 Page 4 of 14

Intercompany processing is dramatically revised by enhancements in both

Underlying many of the improvements in transaction tax, intercompany, and

We’ve striven to keep your upgrade path straightforward. After upgrading to

R12 Release Content Document, Rev. 30 Page 5 of 15

4.1. Multi-Org Access

A Shared Services model of operations drives cost savings and increases

This chapter discusses release content facilitating sharing services in subledger

4.1.2.1. Multi-Org Access Control

4.1.2.2. Multi-Org Security Profile Preferences

R12 Release Content Document, Rev. 30 Page 6 of 16

4.1.2.3. Enhanced Multi-Org Reporting

4.1.2.4. Multi-Org Integration with Accounting Setup Manager

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Oracle Cash Management is an enterprise-wide solution for managing liquidity

4.2.2.1. Bank Account Model

4.2.2.2. Multi-Org Access Control

4.2.2.3. Subledger Accounting

Oracle Cash Management utilizes Oracle Subledger Accounting for setting up

4.2.2.4. Bank Account Balances and Interest Calculation

4.2.2.5. Bank Account Transfers

4.2.2.6. Cash Pooling

Oracle Cash Management supports common cash pooling techniques by allowing

4.2.2.6.1. Self-Initiated Physical Cash Pools

R12 Release Content Document, Rev. 30 Page 9 of 19

4.2.2.6.2. Bank-Initiated Physical Cash Pools, or Zero Balance Accounts

4.2.2.6.3. Notional Cash Pools

4.2.2.7. Bank Statement Accounting

This feature was first released in Oracle Financials Family Pack G.

4.2.2.8. Bank Account Signing Authorities

This feature was first released in Oracle Financials Family Pack G.

4.2.2.9. Cash Positioning Intra-day Activities

This feature was first released in Oracle Financials Family Pack G.

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Oracle General Ledger delivers extraordinary enhancements in this release so

4.3.2.1. Accounting Setup

4.3.2.1.2. Centralized Accounting Setup

4.3.2.1.3. Enhanced Reporting Currency Functionality

R12 Release Content Document, Rev. 30 Page 12 of 22