Release 12 Part 1

eBusiness Suite Release 12
Beyond the Hype!
Jeannie Dobney
JD Consulting Pty Ltd
Graham Goodwin
Graham Goodwin Consulting Pty Ltd GGC
With this paper we aim to provide you with a practical introduction to the new
functionality in Release 12.
Useful references to help you from here include:
•Oracle’s Release 12 documentation
http://www.oracle.com/technology/documentation/applications.html
•Especially:
Oracle Financials Implementation Guide
Oracle Subledger Accounting Implementation Guide
Oracle E-Business Tax Implementation Guide
•And also
Oracle E-Business Tax User Guide
Oracle Financials Concepts Guide
Oracle Financials and Oracle Procurement Functional Upgrade Guide: Release 11i
to Release 12
The authors can be reached by email:

gjgood@bigpond.net.au
jdobney@bigpond.com
1
Agenda
• SWAN User Interface etc
• MOAC (Multi-Org Access Control)
• Legal Entity enhancements
• Ledgers & Ledger Sets
• Sub-Ledger Accounting
• EBS Tax Solution
• Sub-Ledger enhancements
© 2007 Jeannie Dobney & Graham Goodwin

GGC
The authors would like to acknowledge assistance from the following sources:
•Use of the Solution Beacon Vision R12 instance:
http://www.solutionbeacon.com/tools_r12vision.htm
•Material published in Solution Beacon newsletters
http://www.solutionbeacon.com/tool_news.htm
•Webcasts of new functionality by Solution Beacon
http://www.solutionbeacon.com/R12_workshops.htm
•Detailed Material published in the Solution Beacon R12 primer
http://www.solutionbeacon.com/book.htm
2
JInitiator Replacement
• The Good News: No JInitiator
• The Bad News: Sun JRE is required
• Refer to Metalink Note 393931.1

GGC
•The Good News: No JInitiator

JInitiator is the Applet Viewer that enabled Forms to run inside a browser window in 11i
•The Bad News: Sun JRE (plug-in) is required
i.e. 1.5.0_12 Java Runtime Environment / applet viewer that must be downloaded (unless your environment
already uses it) and is twice the size of JInitiator
•Refer to Metalink Note 393931.1

“Upgrading JRE Plugin with Oracle Applications R12”.
(Cf SB Newsletter March 2007)
3
SWAN Interface

GGC
Oracle have invested heavily1 in this make-over, immediately apparent in the new
colour scheme and layout even in Forms (which will be entirely replaced by the
HTML pages in Fusion).
Note (1): According to an IDC Executive Brief on Release 12, Oracle involved 120
user experience professionals in the Interface make-over. This included specialists
from Apple, Yahoo, Google and Microsoft. Representatives from 16 customers
participated in the usability testing. The IDC Brief summarises the outcomes as
follows:
“While the look and feel is very improved the real story is in the improved work
processes. Users can see real gains in the elimination of screens and pop-ups and
in general find the availability of information and key functions well placed.”
4
SWAN Interface: HTML

GGC
Notice the following:

•Process train
•Global Links
•Icons for Edit / Update etc
•Quick Links
•Tips
But
•Ctrl-L doesn’t work for LoV’s
•Some Query operators unavailable e.g. !=
5
SWAN Interface

GGC
Author anecdote re using this functionality: users of the existing interface will need
to re-learn how to work in this interface.
6
SWAN Interface
The 12 Step Group for

those wishing to bring
back the character based
interface, will meet in the
bar later this afternoon….

GGC
New users will no doubt love the SWAN interface but our recommendation is that
you do not underestimate the transition effort for existing users. Even an
“improvement” can take some getting used to for those of us accustomed to “the old
way”.
Plan in end-user training and change management to your Release 12 upgrade.
7
MOAC
• Oracle is positioning Release 12 as “the
Global Business Release”
• It has some great functionality for Shared
Service Centres:
– Includes enhanced Master Data Management
– Headlined by MOAC:
Multi-Organisational Access Control
i.e. enter data for more than one Operating
Unit without changing Responsibility
GGC
The author’s would like to acknowledge that the step by step instructions which
follow are based on an article in Solution Beacon’s June newsletter.
8
MOAC: How It’s Done
The hierarchical profile option precedence is:
1. HR: Security Profile
2. MO: Security Profile
3. MO: Default Operating Unit

GGC
To support this new functionality, Release 12 requires the multi-org structure – even
if you only have one operating unit.
Be aware that there is a hierarchical precedence to the multi-org profile options.
The profile option HR: Security Profile takes precedence over MO: Security Profile.
If an organisation has been defined as both a business group and an operating unit,
the business group will appear in the list of values within the forms and report
parameters unless the “Exclude Business Group” box is checked when the multi-org
security group is defined. The hierarchical profile option precedence is:
1. HR: Security Profile
2. MO: Security Profile
3. MO: Default Operating Unit
If specified, the profile option MO: Default Operating Unit will set the default
operating unit in the list of values within the forms and report parameters.
9

GGC
First step is to create a security profile including those Operating Units /

Organisations which you wish to provide access to.
In HR:
N > Security > Profile
10

GGC
Then submit the process “Security List Maintenance” for the new profile
11

GGC
The new profile will then be available to be assigned either to individual users or to
Responsibilities via the MO: Security Profile profile option
12

GGC
Users will then be able to select the Operating Unit in forms that have this
functionality enabled.
Use the MO: Default Operating Unit to create the value that initially populates these
fields for the users.
Note that you may need to use the Folder option Show Field to display this field in
some forms
13

GGC
Note that many reports and process can now also be run across Operating Units.
For some processes you must specify an Operating Unit (the parameter will
mandate one value be selected from the Operating Unit LoV)
Processes which can be run across operating units allow this field to be left blank.
14

GGC
To support MOAC enabling concurrent requests, a new column

(MULTI_ORG_CATEGORY) has been added to the table
FND_CONCURRENT_PROGRAMS. It must have a value of S (for programs that
must be run for one Operating Unit) or M (for processes that can be run across
Operating Units). You will need to update your custom concurrent reports and
processes in order for your concurrent process to execute. During an upgrade
custom programs will have a null value in this column – preventing them executing.
(The authors are indebted to Solution Beacon’s Release 12 Primer for this valuable
tip.
Developers will also find that the Set_Client_Info procedure has now been replaced.
Further details can be found in Solution Beacon’s Release 12 Primer.)
15

GGC
16
Legal Entity Configurator
• The Legal Entity organisation classification
has existed for some time but was
essentially a placeholder for Financials.
• It now has its own Schema (XLE)
• Set up can be done via the Legal Entity
Manager Responsibility or via GL using
the Accounting SetUp Manager (which is
the only way to assign Balancing Segment
values to Legal Entities)
GGC
Further reference: Oracle Financials Implementation Guide Chapter 4
17
LE’s – Why Should we Care?
• Tax set-up is dependent on Legal Entity setup.
• Legal Entity Reporting now allows you to filter
the data based on the legal entity stamped on
the transactions (for example, AP Invoices, AR
Transactions, etc.) or based on the
ledger/balancing segment value that is
associated with a legal entity.
• Bank Accounts are now owned by Legal Entities
and may span Operating Units.
• LE set up is also used by Intercompany

GGC
Note that the balancing segment value that is associated with a legal entity (through
the Accounting Setup Manager) overrides MO: Security Profile profile option value
18
LE’s: Some Definitions
• Legal Entity
– has rights and responsibilities under commercial law,
through registration with the country's appropriate
legal authority.
• Establishment
– 100% owned and controlled sub-units e.g. branches,
divisions. Some countries require registration with
local regulatory bodies (e.g. US SIC code).
• Jurisdictions / Legal Authorities
– LE’s must be registered against a jurisdiction that is
governed by a legal authority. E.g. the tax jurisdiction
for Australian GST is the country of Australia and the
Authority is the ATO

GGC
Some Definitions:
What is a Legal Entity?
A legal entity has rights and responsibilities under commercial law, through registration with the country's appropriate legal
authority. A legal entity generally has:
- the right to own property and trade,
- the responsibility to repay debt,
- the responsibility to comply with labour law,
- the responsibility to account to company regulators, taxation authorities, and owners according to rules specified in the
relevant legislation.
What is an Establishment?
Establishments are the building blocks of legal entities. They are 100 percent owned and controlled entities such as
branches, divisions, physical locations. In many countries, establishments need to be registered with local regulatory bodies
and may have their own activity codes (such as the SIC code in the U.S.). They are not liable to the outside world (cannot be
sued separately in court). To fulfil registration requirements in some countries at a local level, a legal entity must register a
main establishment.
Registration
Company registration is done in accordance with a particular legislation (commercial law, income tax law, civil law, company
law, etc., depending on the country). This registration confers the status of legal entity and therefore, the right to do
business. Registration information can be used on financial statements and legal reports.
Jurisdictions
All legal entities A jurisdiction is a combination of the legislative category (labour law, transaction tax law, income tax laws,
etc.) and the physical territory to which legal rules are grounded. (For example the tax jurisdiction for Goods and Services
tax in Australia is the country of Australia.)
Jurisdictions must be set up before creating a registration. Some are seeded but it is also possible to create additional
jurisdictions for other registrations. The identifying jurisdiction is usually the first jurisdiction that the legal entity must register
with, in order to be recognized in its territory. The jurisdiction can also capture the registration code or number. There may
be a set of functions required by some registrations, for example payment of income tax and / or submission of annual
declaration. When a registration is created, the specific functions of the jurisdiction can be assigned to the legal entity.
Legal Authorities
A legal authority is a governing legal body that operates within a jurisdiction. For example, the ATO (Australian Tax Office) is
the legal authority for tax law in the Australia. Legal authority information is used on legal reports and financial statements in
some countries and is determined by the legislation of the jurisdiction. Defining a legal authority is not required for a legal
entity to transact and therefore, is not required to create a registration.
Legal Associations
Legal Associations provide a mechanism for associating business entities (non-legal constructs) and legal constructs (legal
entities, establishments). You can use the Establishment Details page to create associations between various attributes
(such as Operating Unit/ Inventory Organization /Inventory Location / Ship-to and Bill-to Location) to establishments. These
associations are mainly used for tax calculations
19
Legal Entity Manager

GGC
Note there are 3 tabs:

Legal Entity Home Page. From this page you can:
- View and update the five most recent legal entities created
- View and update the five most recent registrations
- Search for legal entities by legal entity name or legal entity identifier
- Create a legal entity
From the Legal Entities page you can:
- Create a New Legal Entity or
- Search for, View and / or Update an existing Legal Entity.
From the SetUp page you can:
- Create or update Addresses (locations)
- Create or update Jurisdictions
- Create or update Legal Authorities
20

GGC
21

GGC
22
Legal Entities: Migration
• 11i Organisations classified as GRE /
LE’s will be migrated as Legal Entities and
Main Establishments
• Operating Units and Inventory
Organisations associated with the GRE /
LE will be migrated as Establishments
• Legal Entities will also be migrated as
parties in the Trading Community
Architecture (TCA)

GGC
This data is from an Open World 2006 presentation by Kathryn Wohnoutka on

Release 12 New Features
23
Ledgers and Ledger Sets
SoB becomes a Ledger
Set of Books (11i): Ledger (12):
• Functional Currency • Functional Currency
• Chart of Accounts • Chart of Accounts
• Calendar • Calendar
• Accounting Convention

GGC
This section describes Ledgers conceptually first and then reviews the screens
used to create Ledgers
24
Ledgers: Primary & Secondary
• Primary Ledger is the main accounting
representation of financial system.
• Secondary Ledger(s) can provide an
alternative representation.
• Conversion Options:
– Subledger Level
– Journal Level
– Balance Level
– Adjustments only

GGC
The data in a secondary ledger can be stored / converted at several different levels
of granularity:
• Subledger Level – data is converted for the subledger & GL journal entries. Both
the Subledger Accounting and the GL Posting concurrent programs perform these
conversions.
• Journal Level – GL only i.e. every time a journal is posted in the primary ledger,
the same journal can be automatically replicated in the secondary ledger for
specified journal sources and categories.
• Balance Level – data is converted for the balances only and uses the Oracle
General Ledger Consolidation program to transfer primary ledger balances to the
secondary ledger.
• Adjustments only Level - stores only the adjustment data in the secondary ledger.
To obtain a complete secondary accounting representation that includes both the

transactional data and the adjustments, ledger sets must be used.
Alternate reporting currencies can be assigned to the Primary Ledger. An alternate

reporting currency can be used instead of a secondary ledger when the only part of
the ledger that is different is the currency.
25
Ledger Sets
• Used to group Ledgers
• Must have the same Calendar and Chart
• Actions that can now be performed across
Ledger Sets include:
– Open and Close Periods
– Reporting (standard reports and FSG’ s)
– Create Journals
• One Ledger can belong to multiple Ledger
Sets
GGC
26
Ledger Set

GGC
Ledger Sets can be designed to assist with eliminations when reporting across
corporate groups.
27
Reporting By Ledger Sets

GGC
28
Migration Path
• If you are upgrading from 11i, do not fear!
– Your Set of Books will become a Ledger in its
own Ledger Set
– The system will return the same accounting
outcomes as your 11i set up did
– MOAC will be available but not yet enabled
– Other new functionality will also be available
but not yet enabled

GGC
29
An Example
The Dept. of Deep Pockets
• Primary Ledger
= Accrual
• Secondary Ledger
= Cash

GGC
For those interested in more detail, we recommend chapter 3 of the Oracle

Financials Implementation Guide.
The Appendix of that manual also has examples of the use of Ledger Sets, multiple
Legal Entities and different accounting methods.
30
Accounting SetUp Manager

GGC
From this screen click Create Accounting SetUp to start
31
Create / Assign Legal Entity

GGC
Note that the Add Another Row button may not be intuitive to those of us
accustomed to using the down arrow to create a new record.
32
Create Legal Entity

GGC
The profile option “XLE: Generate Legal Entity Identifier” controls whether the Legal
Entity Identifier is set by the system or the user. A “No” value is the default and
requires this value be entered manually by the user.
33
Assign Legal Entity

GGC
Having created the Legal Entity, click Next to follow the process train to the next
step.
34
Create Primary Ledger

GGC
This screen’s contents will be familiar to users who have previously created a Set of
Books.
35
Select Accounting Convention

GGC
Accounting Method’s will be described in more detail in the next section.

Notice that seeded methods are owned by Oracle and cannot be modified.
They can however be copied to create user owned (custom) accounting methods if
required.
36
Key Primary Ledger Settings

GGC
37
Helpful Message (?)

GGC
38
Ledger Accounting Options

GGC
39

GGC
40

GGC
41
Final Step: Review & Confirm

GGC
42
Assign Bal. Seg. Value to LE

GGC
43
Add Secondary Ledger

GGC
44
Secondary Ledger (cont)

GGC
45
Accounting Methods
• In the example just shown, we used 2
predefined Accounting Methods seeded by
Oracle.
• In the next section we’ll look more closely
at the accounting method architecture, the
Accounting Methods Builder (AMB) and
the sub-ledger accounting engine.

GGC
46
SubLedger Accounting (SLA)
• A new product in Release 12 and a major change,
although it may be almost transparent to end-
users
• Both a set of rules and an engine to generate the
transactions, SLA allows multiple parallel
accounting representations of the same
transaction
• Participating sub-ledgers include:
– Payables -- Receivables
– Projects -- Assets
– Cash Management -- Purchasing
– Cost Management -- Process Manufacturing
GGC
For additional reference material, start with Oracle’s SubLedger Accounting

Implementation Guide.
Note that in R12 all Subledger Applications post Journal Entries to SLA instead of
directly to General Ledger
47
SubLedger Accounting SetUp
Accounting Methods Builder (AMB) windows but

can be accessed from the set-up menu in the
participating sub-ledgers

GGC
48
SLA Accounting
e.g. Standard Accrual
Architecture Method
Application An Accounting Method is made up of

Application
Accounting multipleApplicationAccounting
Application
Accounting
Definition Definitions, one for each sub-ledger
Accounting
Definition
Definition
Each Application has a number of

Events which can generate
Accounting entries. For example
Event Classes
Payables has event classes like
invoices and payments.
Journal Header Journal Line Each event that generates a journal is

Assignments Definitions made up of components that can be
defined using rules or by entering
data into the available forms.
Journal Journal Line Account

Descriptions Types Derivation Rules
Sources are components of
transactions e.g. the supplier who
submittedtheinvoice. Custom
Sources sources can also be defined using
PL/SQL

GGC
49
Example: Standard Accrual Method

GGC
50
Example: AP Accounting Definition

GGC
51
Example: Comparison Cash Basis

GGC
52
Example: Header Assignments

GGC
53
Example: Line Assignments

GGC
54
Example: Journal Descriptions

GGC
55
Example: Account Derivation Rules

GGC
56
Example: Description Definition

GGC
57
Example: Sources

GGC
58
SLA: Accounting Options

GGC
N > Setup > Accounting Setups > Ledger Setup > Define > Accounting Setups
59
SLA: Accounting Options (2)

GGC
60
SLA: The End-User’s View

GGC
61
SLA: The End-User’s View

GGC
One of the changes which end-users may notice is that intercompany balancing
entries will now be made at the time when the sub-ledger accounting is created
(rather than when the journal is posted by the General Ledger.)
62
SLA: Upgrade Modes
• No Upgrade:
– No historical accounting data is upgraded
• Partial upgrade:
– Some historical data is upgraded
– Determine the range of periods when you submit the
SLA pre-upgrade
– Use SLA Upgrade Historical Subledger Transaction
Program
• Full upgrade:
– All historical accounting data is upgraded to SLA

GGC
This data is from an Open World 2006 presentation by Kathryn Wohnoutka on

Release 12 New Features.
Another migration consideration related to Sub-Ledger Accounting is testing. One of
the key benefits promoted by Oracle for the SLA model is improved reconciliation.
Testing this and revising period close procedures to take advantage of these
benefits will need to be planned in to the Test Plan.
63

Release 12 Part 1

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Release 12 Part 1

Uploaded by

Copyright:

Available Formats

eBusiness Suite Release 12

Beyond the Hype!

The authors can be reached by email:

© 2007 Jeannie Dobney & Graham Goodwin

© 2007 Jeannie Dobney & Graham Goodwin

•The Good News: No JInitiator

•Refer to Metalink Note 393931.1

© 2007 Jeannie Dobney & Graham Goodwin

© 2007 Jeannie Dobney & Graham Goodwin

Notice the following:

© 2007 Jeannie Dobney & Graham Goodwin

The 12 Step Group for

© 2007 Jeannie Dobney & Graham Goodwin

© 2007 Jeannie Dobney & Graham Goodwin

© 2007 Jeannie Dobney & Graham Goodwin

First step is to create a security profile including those Operating Units /

© 2007 Jeannie Dobney & Graham Goodwin

© 2007 Jeannie Dobney & Graham Goodwin

© 2007 Jeannie Dobney & Graham Goodwin

© 2007 Jeannie Dobney & Graham Goodwin

© 2007 Jeannie Dobney & Graham Goodwin

To support MOAC enabling concurrent requests, a new column

© 2007 Jeannie Dobney & Graham Goodwin

Further reference: Oracle Financials Implementation Guide Chapter 4

© 2007 Jeannie Dobney & Graham Goodwin

© 2007 Jeannie Dobney & Graham Goodwin

© 2007 Jeannie Dobney & Graham Goodwin

Note there are 3 tabs:

© 2007 Jeannie Dobney & Graham Goodwin

© 2007 Jeannie Dobney & Graham Goodwin

© 2007 Jeannie Dobney & Graham Goodwin

This data is from an Open World 2006 presentation by Kathryn Wohnoutka on

© 2007 Jeannie Dobney & Graham Goodwin

© 2007 Jeannie Dobney & Graham Goodwin

To obtain a complete secondary accounting representation that includes both the

Alternate reporting currencies can be assigned to the Primary Ledger. An alternate

© 2007 Jeannie Dobney & Graham Goodwin

© 2007 Jeannie Dobney & Graham Goodwin

© 2007 Jeannie Dobney & Graham Goodwin

© 2007 Jeannie Dobney & Graham Goodwin

For those interested in more detail, we recommend chapter 3 of the Oracle

© 2007 Jeannie Dobney & Graham Goodwin

From this screen click Create Accounting SetUp to start

© 2007 Jeannie Dobney & Graham Goodwin

© 2007 Jeannie Dobney & Graham Goodwin

© 2007 Jeannie Dobney & Graham Goodwin

© 2007 Jeannie Dobney & Graham Goodwin

© 2007 Jeannie Dobney & Graham Goodwin

Accounting Method’s will be described in more detail in the next section.

© 2007 Jeannie Dobney & Graham Goodwin

© 2007 Jeannie Dobney & Graham Goodwin

© 2007 Jeannie Dobney & Graham Goodwin

© 2007 Jeannie Dobney & Graham Goodwin

© 2007 Jeannie Dobney & Graham Goodwin

© 2007 Jeannie Dobney & Graham Goodwin

© 2007 Jeannie Dobney & Graham Goodwin

© 2007 Jeannie Dobney & Graham Goodwin

© 2007 Jeannie Dobney & Graham Goodwin

© 2007 Jeannie Dobney & Graham Goodwin

For additional reference material, start with Oracle’s SubLedger Accounting

Accounting Methods Builder (AMB) windows but

© 2007 Jeannie Dobney & Graham Goodwin

Application An Accounting Method is made up of

Each Application has a number of