E-Business Suite

What¶s New in Release 12
Connie Barbon, Oracle Senior Sales Consultant

Agenda What¶s New in R12
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‡ Overview ‡ Financials
‡ 6 Major Initiatives ‡ Other ³cool stuff´ ‡ Not really R12«

‡ Q&A ‡ Additional content on Projects and Human Capital Management included in slide deck

New User Experience

A New User Experience for R12 Accelerate global roll-outs with simplified user interface and business flows ‡ Reduced pop-ups and duplicate screens ‡ Re-designed and streamlined entire workflows ‡ Reduced the number of steps to complete key tasks ‡ Improved overall look & feel and visual style ‡ Increased personalization capabilities Improved Workflow in Targeted Areas ‡ Campaign Management ‡ Customer Support ‡ Collections & Payments ‡ Loan Management ‡ Financial Consolidation ‡ Online Candidate Registration ‡ Absence Management ‡ Salary Administration ‡ Self-Service Purchasing ‡ Sourcing ‡ Supplier Collaboration ‡ Business Intelligence .

New User Experience New Background Pattern New Buttons New Colors New Fonts New Icons .

11i User Experience .example ‡ Define/Assign Set of Books. Specify Conversion options/rules Defining a set of books takes 5 tabs to accommodate all fields and rules Multiple steps required to assign sets of books and specify conversion options/rules .

Single Page for Accounting Setup ‡Legal Entities ‡Ledgers ‡Currencies ‡Balancing Segments ‡Subledger Accounting ‡Operating Units ‡Balancing Options .Superior Ownership Experience R12 .

Oracle Financials What¶s New in Release 12 .

Bank Model MultiMulti-Org Access Control Dr Cr General Ledger Ledger & Ledger Sets Subledger Accounting (SLA) Tax Engine Inter Company Bank Model Inventory Receivables Projects Work in Process Purchasing Payables . Intercompany 5. Ledger and Ledger Sets 2.What¶s New in R12 Financials 6 Major Initiatives 1. Subledger Accounting 3. Tax Engine 6. MOAC 4.

<Insert Picture Here> Ledgers and Ledger Sets .

Calendar. Calendar. Currency. Chart Seeded Conventions: Standard Accrual Standard Cash Accrual w/ Encumbrance Cash w/ Encumbrance US Federal Accounting China Standard Accrual R12 = Ledgers 4 C·s: Currency. Calendar. Convention . and Subledger Accounting Convention for which accounting information is recorded 11i & Prior = Sets of Books 3 C¶s: Currency.Ledgers in Oracle A set of accounting information for a legal or business entity Each ledger is associated with a Chart of accounts. Chart.

Multiple Accounting Representations Parallel Financial Reporting with Ledgers Ledger A French Rules French COA French Calendar Ledger B US GAAP US COA US Calendar EUR EUR Dr Cr Subledger Accountin g Single subledger transaction can create multiple accounting representations and in multiple currencies Payables Invoice .

France requires Statutory Chart) ‡ Differs from Primary Ledger by Chart. Tax or Consolidated reporting Reporting Currency Ledger ‡ Differs from Primary Ledger by Currency ONLY ‡ Just a translation of the Primary Ledger ± no rules required ‡ For Consolidated reporting .Multiple Ledgers Primary Ledger ‡ the main ³Activity´ Ledger ‡ Usually in the local currency ‡ For Operational reporting Secondary Ledger (ex. Calendar. and/or Convention ‡ For Statutory.

Ledger Sets Global Information At A Glance Share: Ledger Set Chart of Accounts Calendar Ledger C US GAAP US COA US Calendar Ledger A French Rules French COA French Calendar Ledger B US GAAP US COA US Calendar USD Ledger D US GAAP US COA US Calendar EUR EUR AUD Key benefits to many Ledgers in one set Decision-driving business information always available Simpler processing and General Ledger management Data and definitions that can be shared and secured Reporting Currency .

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

Perform the Following Across Ledgers Using Ledger Sets ‡ Open/Close Periods ‡ Create Journals ‡ Allocations Across Ledgers ‡ Recurring Journals for All Ledgers ‡ Elimination Sets for All Ledgers ‡ Translate and Revalue Balances ‡ View Information without Changing Responsibilities ‡ View Journals and Account Balances Across Ledgers ‡ Submit Standard Reports ‡ Create Financial Statements that Include Data for Multiple Ledgers .

not a data warehouse .Ledger Set Benefits ‡ Shorter Close Process ‡ Run month-end close processes across multiple ledgers simultaneously ‡ Greater flexibility to decentralize/centralize accounting functions ‡ The corporate office can control the period status for multiple subsidiaries at once ‡ Real-Time Enterprise-Wide Visibility ‡ Quickly report across the entire enterprise in real-time because no transfer of data is required ‡ Reported results are accurate and timely because they are based on the transactional system.

Ledger Set Benefits ‡ More Efficient Access to Ledger Data ‡ No need to change responsibilities to access data in different ledgers ‡ Processing Efficiency ‡ Essentially treats multiple ledgers as one and eliminates the overhead of having a high number of ledgers defined ‡ Reduces the number of repetitive tasks that offer limited value and allows you to spend more time on value-added tasks ‡ Reporting Efficiency ‡ Obtain ³flash´ reports throughout the accounting cycle to proactively manage the business instead of waiting until the end of the month when the data collected is backward looking .

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

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

<Insert Picture Here> Subledger Accounting .

Engine and Repository ‡ Single source of truth for all subsystem accounting activity with a common data model and repository ‡ Accounting. Rules. reconciliation and reporting facilitated by centralized data model Inventory 3rd Party Systems Work in Process Receivables Projects ‡ Streamline closing process with common posting engine ‡ Auditable and transparent entries accessible with full drilldown Purchasing Payables .Subledger Accounting Centralized Rules. Common Repository: Global Control ‡ Internal control and compliance with multiple accounting policies through user-defined accounting rules 3rd Party Systems Dr Cr General Ledger General Ledger SLA = Centralized Accounting Model.

Introduction to Subledger Accounting ‡ Rule-based accounting engine. providing single source of truth for financial and management analysis . allowing full auditability and reconciliation ‡ Introduces a common data model and UI across subledgers. with different summarization options in the General Ledger. resolving conflicts between corporate and local fiscal accounting requirements ‡ Retains the most granular level of detail in the subledger accounting model. toolset & repository supporting Oracle E-Business Suite modules ‡ Allows multiple accounting representations for a single business event. replaces various disparate 11i setups.

Introduction to Subledger Accounting DUAL POSTING SIMULTANEOUSLY Ledger: FR Statutory GL Date: 2-Mar-2006 2-MarInvoice Internal Identifier: 1001 Invoice Internal Identifier: 1001 Invoice #100 ABC Networks 2 Monitors ± Marketing $1000 5 Printers ± Marketing $ 500 Freight Tax Total $ 100 $ 110 $1710 Invoice# 100 Ledger: US Corporate Supplier: ABC Networks GL Date: 2-Mar-2006 2-MarInvoice# 100 Supplier: ABC Networks DR CR Invoice Line 1 Invoice Line 2 Invoice Line 3 Invoice Line 4 1 Expense 01-EXP-200 01-EXP2 Freight 01-FR-200 01-FR3 Tax 01-TX01-TX-200 $1500 $100 $110 4 Liability 01-LIAB-200 01-LIAB- $1710 .

Accounting ‡ SLA provides a distinction between a transaction and the accounting representation of the transaction (there can be multiple representations of one transaction) ‡ Accounting distributions did not necessarily go away ‡ Needed for upgrade customers ‡ Needed as starting point for SLA (Don¶t want to force customers to define their own SLA rules) ‡ In some cases.Transactions vs. necessary to allow user input ‡ Most default SLA rules just µpass through¶ the distribution accounts (where applicable) .

Streamline Accounting .

Impacted Applications ‡ ‡ ‡ ‡ ‡ ‡ ‡ ‡ General Ledger Payables Receivables Projects Assets Costing OPM Public Sector/Federal ‡ ‡ ‡ ‡ Payroll Property Manager Loans Lease Management (Post R12) ‡ Cash Management ‡ Globalizations ‡ Intercompany .

Subledger Journal Entry ± more info .

000.000 EUR Invoice No: 136274 GL Date: 01/27/07 Invoice No: 116555 GL Date: 01/27/07 3rd Party: Kramer SLA JE #2 SLA JE #3 101.000 AR. Invoice No: 131299 GL Date: 01/27/07 byrd Party: Gibson 3 GL Period.0000.000.100.000.000.63580.100.000.000 .000 6.100. GL Journal Entries Many to One SLA JE #1 ControlledFenderJE 3rd Party: by GL Summarization setting for 101.000 3. or No Summarization 101.720.0000.000 101.000.000 EUR 11.000 3.000 6.000.720.0000.22100.Subledger Entry vs.000.000 EUR GL JE #1 GL Period: Jan-07 11.100.0000.000 EUR 101.63580.0000.100.100.000.000 Batch: AP Invoices 27-Jan-07 2.000.0000.63580.22100.0000. EUR Summarize by GL Date.720.22100.000.000 101.63580.720.100.100.0000.000 each Subledger App EUR 101.22100. etc): (AP.000.000 EUR 101.000 EUR 2.

the R12 upgrade migrates at least 6 periods of accounting entries from each application to the SLA data model. ‡ For prior periods. ‡ You can modify this if desired. You can drill from General Ledger to the historical transactions using standard GL drilldown .Upgrade Considerations ‡ By default. the historical data is preserved.

<Insert Picture Here> Multi-Org Access Control (MOAC) .

Demand & Purchase Orders  Receiving & Drop Ship  Invoice Receipt. Billing  Requisition. Disbursement  Customer Data Management  Accounting Setup Belgium Operating Unit Holland Operating Unit Denmark Operating Unit Responsibility Responsibility Single Responsibility Responsibility . Collections.MOAC: Multi-Org Access Control Role based access to Operating Units Perform multiple tasks across operating units without changing responsibilities Belgium Legal Entity Holland Legal Entity Denmark Legal Entity Functional Tasks  Order Management  Dunning.

Multi-Org Access Control Setup
Define Security Profile

Specify Operating Units

Classify Organization as operating unit

MOAC
Typical Screen in daily use

Select Operating Unit during Input

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Advanced Global Intercompany System (AGIS)

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

Web UI

Subledger Invoices & Documents

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

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Cr

General Ledger

Subledger Accounting

Receivables

Payables

Intercompany Journal Across Ledgers

Intercompany Due To / Due From lines automatically generated .

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

<Insert Picture Here> Tax Engine .

and accounting event.Centralized Global Tax Less Complex Global Tax Compliance Business Needs ‡ Tax content for certain countries Automation ‡ Vertex and Taxware integration for U. legal entity. rules. ‡ Integrity checks during setup process Constant Changes in Tax Laws and Regulations ‡ Date effective setup ‡ Tax rules flow for change or creating rules ‡ Tax simulator for setup. inventory item categorization.S. Solution . and transactions ‡ Tax registrations and tax reporting codes Local Compliance ‡ Tax lines determine applicable taxes ‡ Configurable tax reporting templates ‡ Single set up for all Oracle applications Information Visibility ‡ Use of E-Business Suite components such as trading partner geography. trading partner classification.

Self-assessed Use Tax .g.E-Business Tax Centrally manage tax transactions across entire E-Business Suite ‡ Single Repository of Internet Expenses Purchasing Internet Procurement ‡ ‡ General Ledger Tax Transactions Tax Setup/Rules Payables Receivables Order Management Inter-Company Invoicing ‡ ‡ Effective Date Setup ‡ Extensible architecture transactions for global business insight Centralized rules applied to transactions to manage globally and reduce risk Automation of tax processes on transactions to improve operational efficiency Improved Reporting that supports additions. e.

eBusiness Tax Tax determination. not just tax codes« Before R12 ‡ User determines tax by assigning R12 ‡ eBTax determines tax based on Tax Codes ‡ Tax rules in code ‡ Global descriptive flexfields for facts about each transaction ‡ Tax rules you can see ‡ Tax attributes collected in fields on country-specific tax attributes ‡ Granular setup at OU level key entities ‡ Configure tax rules once per regime and share with your legal entities Facilitates compliance Improves auditability .

<Insert Picture Here> Bank Model .

Centralized Banking Shared Services Disbursements ‡ Bank account is now associated with LE entity rather than Operating Unit OU C LE OU A OU B ‡ Single bank account serves multiple Operating Units ‡ For Internal Banks and Customer & Supplier Banks Inventory Receivables Receivable s Purchasing Payables Payables Projects Projects ‡ Enhanced Reconciliation PLUS:  Centralized Credit Card Model  Supplier & Customer Banks in TCA Work in Process Assets .

Bank Model: Example of what you can do Pay invoices from different OUs with 1 instruction OU A ‡ New Payments Module ‡ New Bank Module ‡ New Bank & Credit Card Features OU B OU C Single Payment Instruction Bank Payments Sub Ledger Accounting Invoices .

Banks Define Owner of Bank Account Specify Legal Entity Owner Where is Account used? .

OU¶s.Select Multiple LE¶s. Currencies in single Payment Run .

<Insert Picture Here> Miscellaneous Cool Stuff« .

Report Repository Online ³file cabinet´ to where Financial Reports are published .

Add Report to Menu .

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Control Accounts Control Account ± Prevents posting other than automatically from Subledgers .

Replacement Accounts Replacement Account will be posted to in place of Disabled Account .

Payments Dashboard Submit or Schedule Payment Process Request .

Operating Units.Use Payment Template to Default values Pay Multiple Legal Entities. and Currencies in one Payment Run .

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

Pending Actions walks you through process .

Positive Pay Program .

Allocations Edit Coding of Expense Lines .Internet Expenses .

Allocate Expense Lines * even to Projects .

Internet Expenses ± Bar Coding Bar Coding of Expense Reports .

Invoices. Payroll. Billing Events Sales Orders Payroll Expenses Treasury Deals Budgets. OM. Expense Reports Receipts. Sales.Cash Forecasting Seamless Integration ± GL. Purchasing. Invoices POs. Requisitions Sales Opportunities Labor. AR. Encumbrances External Systems . Misc Budgets. AP. Usages. Treasury Payments.

Robust Cash Forecasting Cash Forecasting is a planning Tool that helps you anticipate the flow of Cash in & out of your business. allowing you to project your cash needs. Specify Sources Drill down to transaction details Include/Exclude lines .

Cash Pool. or Currency.Flexible Cash Positioning Cash Positioning is a planning tool that allows you to view your daily cash position by Bank Acct. bank account or cash pool Save Projected Balances for Reporting Online refresh capabilities . Automatically generate cash transfers Drill down to details View by currency.

³Cash Leveling´ Proposal ± initiates Bank Transfer .

<Insert Picture Here> Not Really R12 ± But still cool« .

to the web and electronically ‡ Drive reporting consistency with one source of data ³Oracle¶s new XML Publisher is visionary and empowers end users. MS Word.Sean Malinski.´ -. minimizing the dependency on the IT staff. and XSL Editors) ‡ Publish in any format. or text for use with EFT and EDI transmissions Benefits ‡ Put reporting in the hands of the business user ‡ Create report formats using desktop tools (Adobe Acrobat. RTF. Accenture Partner. Global Business Solutions . and enables users to create their own reports. HTML.Oracle Practice . This new capability gives customers the look and feel of Excel with a desktop publishing look to reports. Excel (HTML). MS Excel.Simplified Self-Service Reporting BI (XML) Publisher Reporting Evolution ‡ Replaces most standard reports with data extracts and templates ‡ Merges custom templates and data extracts at run-time ‡ Delivers output in PDF.

Old Standard Reports .

New Standard Reports (HTML) .

many.Oracle BI Publisher ‡ Many. many Standard Reports ‡ Multiple formats per report ‡ Merge Data with Contract Terms ‡ User-defined templates ‡ Boardroom Quality Output .

enabling managers to identify overdue balances and other receivables bottlenecks. it enables more efficient management of the entire Lead to Cash process. and geographic detail. When combined with Marketing Analytics.Oracle Business Intelligence Comprehensive View of Financial Performance General Ledger & Profitability Analytics Incorporates detail-level general ledger transactions and cash flow analysis across locations. . distribution channels. location. it allows full procurement analysis from Requisition to Check. When combined with Oracle Sales Analytics and Oracle Order Management & Fulfillment Analytics. Receivables Analytics Monitors collections processes to show what customers buy and how they pay. customers. it enables analysis of Campaign ROI and assists in customer segmentation. department. When combined with Supply Chain Analytics. Identifies the customers and transactions that are providing maximum profits by product. and business units. products. Payables Analytics Provides visibility into payments due to suppliers and expense line detail so managers can manage cash outflows and control expenses. sales territories.

Oracle Business Intelligence .

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Record it. and support materials needed to drive project team and increase user productivity throughout the lifecycle of your software.5. cost-effective solution that helps your organization quickly create critical documentation.9 and above .User Productivity Kit (UPK) What is UPK « « a comprehensive. and Publish it ‡ ‡ ‡ ‡ Training Guides Web-based Training Job Aids Test Scripts WORKS WITH 11. training. ‡ You Perform a transaction.

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

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New in Financial Control & Reporting Highly automated financials processing drives efficiencies ‡ Centralized accounting setup ‡ Streamlined multiple ledger processing and reporting ‡ Parallel financial reporting ‡ Automatic reporting currency conversion ‡ Replacement for disabled accounts EFFICIENCY ‡ Data security across legal entities. ledgers or balancing segment values ‡ Control Accounts FLEXIBILITY ‡ Accounting and reporting sequencing ‡ Journal line reconciliation AUDITABILITY .

and non-PO invoices COST SAVINGS ‡ Streamlined supplier setup and maintenance as part of Trading Community Architecture (TCA) ‡ Access to TCA features INTEGRATION .New in Procure-to-Pay Integrated Suite Optimizes Working Capital ‡ Document line level entry and approval ‡ Non-PO invoice accounting entry by approvers ‡ Invoice dispute management ‡ Real-time status of purchasing contract T&Cs and PRODUCTIVITY invoicing activity in Oracle Payables and Purchasing ‡ Self-service opportunities via iSupplier Portal to a broader set of their suppliers ‡ Self service entry extended to receipt matched. complex Work Purchase Orders.

New in Credit-to-Cash Accelerate cash cycle and manage revenue with fiscal discipline ‡ Daily revenue recognition ‡ Deferral reason for goods and services ‡ COGS and revenue matching ‡ Line level cash application ‡ More efficient payment application with Oracle Payments COMPLIANCE integration ‡ More targeted and efficient collections with configurable matrix ‡ Credit recommendation enhancements ‡ Conversion of delinquent receivables to payment plans ‡ Visibility to carry-forward balances with cycle-based BETTER CASH FLOW billing ‡ Payment application according to customer preferences INDUSTRY SUPPORT .

New in Cash and Treasury Optimize Cash and Treasury Operations ‡ Centralized and consolidated bank model ‡ Single bank account shared by multiple organizations ‡ Bank account transfers directly in Cash Management ‡ Funds optimization with cash pooling and zero balancing ‡ Configurable and centralized payments engine ‡ Full audit trail and control with single point of payment EFFICIENCY administration ‡ Straight through processing (STP) for payments ‡ Real-time visibility into cash inflows and outflows ‡ Large library of payment formats and validations ‡ Simplified reconciliation of bank statements to cash COMPLEXITY transactions in multiple organizations ‡ Support for new bank account balance types in bank statement import ‡ Bank account-level reconciliation options and tolerances FLEXIBILITY .

New in Asset Management Maximize return on assets ‡ Automate legacy asset conversion with enhanced preparation of Mass Additions EFFICIENCY ‡ Perform rollback on select assets with Automatic Depreciation Rollback PERFORMANCE ‡ Group Assets to include ³Units of Production´ method ‡ Energy straight-line depreciation method ‡ Asset impairment of a producing asset INDUSTRY SUPPORT .

New in Travel & Expense Lower the total cost of travel and expense ‡ CONUS and OCONUS global per diem rates ‡ Per diem and policy schedules LOWER COSTS ‡ Expense splitting across multiple accounting segments ‡ Enhanced cost center and projects approvals ACCURACY ‡ Self-service cash advance application during entry ‡ Bar code generation ‡ Streamlined receipts management with receipts tracking PRODUCTIVITY and receipts missing capabilities .

<Insert Picture Here> Why Upgrade ? .

´ ³Multi-Org Access Control (MOAC) will definitely reduce the workload and the number of people performing process related tasks. and enforcing a consistent approach for true global accounting.´ ³Ability to issue one payment instruction to the bank for payments of invoices in multiple operating units was viewed as a huge benefit from the user community. payments. taxes.´ .´ ³Banks. specifically the creation of physical invoices to be created for I/C transactions in Payables and Receivables eliminates many customizations in this area.´ ³Centralization of subledger accounting rules would minimize set up and maintenance.´ ³The functionality offered with Advanced Global Intercompany System (AGIS). providing greater financial control.´ ³The ability to access multiple operating units with a single responsibility can simplify SOX compliance monitoring. and accounting ± everything that becomes centralized will bring tremendous efficiencies to our organization. The users are very excited and the benefits of MOAC were readily visible to them.Why Upgrade Straight Talk from Customers ³We have 60 sets of books and see tremendous efficiencies with running processes across these sets of books using Ledger Sets.

currency and regulatory support ‡ Unified data model ‡ Industry leading performance and scalability ‡ Unified customer model with data quality management tools ‡ Integrated collections management ‡ Online receipt and dispute management ‡ Online supplier procurement and payment management ‡ Property and real estate management New in 11i. global tax engine ‡ Unified bank account model ‡ Centralized payments engine ‡ Common global intercompany system ‡ Shared services support with multi-org access ‡ Improved user experience ‡ Centralized data model for suppliers and banks ‡ Accounting & consolidation engine for Financial Services ‡ Multi-dimensional profitability analysis ‡ Fusion Middleware certification ‡ Enhanced integration repository ‡ Retek integration ‡ Daily business intelligence ‡ Compliance-driven financial . and trade management integration flow ‡ Self-service asset management ‡ Enhanced credit card business flow management ‡ Cash positioning and forecasting ‡ Supplier open interface New in R12« ‡ Ledgers and ledger sets ‡ Centralized rules-based accounting engine ‡ Single. collections.Evolution of Oracle Financials Base Differentiators« for financials ‡ Global single instance and shared service center support ‡ Global language.10« consolidation and reporting ‡ Enterprise planning and budgeting ‡ Audit operations. compliance and certification management ‡ Web services for financials ‡ XBRL financial reporting ‡ Enhanced bill presentment: user definable formats and online drill down capabilities ‡ Enhanced credit.

Q&A .

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