R12 Upgrade Study

March 07, 2011

Presented by: Rapidflow Apps Inc.

Major OPM Enhancements in R12
11i vs R12 Comparison – Organization Structure
OPM Organization structure has been merged within Inventory Organization structure in R12.
No more concept of Company/Plant in OPM R12.

11i Organization Hierarchy R12 Organization Hierarchy

OPM Discrete
Ledger

SOB

LE

Default LE
Context Legal
Company Operating Unit Operating Unit
Entity

Organization /
Plant

Inventory Inventory
Warehouse
Organization Organization

Sub-Inventory Sub-Inventory

Location Stock Locator Stock Locator

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Inventory Convergence – Common Inventory
Common Inventory for Discrete and Process

R12 merges Oracle Process

Manufacturing OPM Inventory and
Oracle Inventory applications into a
single version

OPM users can now leverage the

functionalities such as consigned & VMI
and center led procurement which were
available only to discrete inventory in 11i
11i.5.10

12i
Product Development Changes
Inventory Convergence impact on Product Development

Most screens in Formulator are modified to support the Inventory Convergence with no
change in the existing functionality

Technically every screen in the Product development is changed to modify the
references to the OPM Organization, Item Master, Lot / Sub-Lot and the UOM
Conversions

New Functionalities provided

Least Cost Formulation
• This new feature in OPM that will help generate optimized formulas and batches
based on targets and constraints

Using Substitute Items with Planning
• Defining substitutes to items will make it visible to ASCP to determine if
production is possible with use of substitute ingredients
Process Execution Changes

11i R12
Allocation of ingredients (pending transactions) Reservation (multiple levels); Manual or rule
based reservations
No support for movement of inventory material Support for Move Orders
within the production
Site-level profile options Organization-specific system parameters
Consumption and Replenishment Warehouse Plant-Warehouse relations discontinued
setup in Plant-Warehouse relationship Supply and Yield Sub-inventory introduced
No support for WMS Integration with WMS transactions
Shop calendar Workday Calendar
Pick lots Select from Available Oracle Inventory
Support for Move Orders
Line Allocation Transact Material (WIP Issue, WIP Completion,
WIP Issue Return)
Process Costing Changes
• OPM Costing is enhanced to support the Oracle Inventory module that replaces the OPM
Inventory in R12 (Inventory Convergence)
• OPM Manufacturing Accounting Controller Module is Obsolete
• Oracle Process Manufacturing Sub-ledger Accounting replaces MAC
• Only the transactions in the process organizations will be processed by the OPM Sub
Ledger
• SLA provides common data model and UI across sub-ledgers

Few examples of Terminology changes in R12 OPM Costing

11i Terminology R12 Terminology

Cost Method Cost Types
Burdens Overheads
PM Batch Detail Production Batches
PCO Account COGS Account
Major Finance Enhancements in R12
Finance (R12 Features) -6 Major New Features
Ledger A Ledger B
 Ledger and Ledger Sets French Rules US GAAP
French COA US COA
French Calendar US Calendar
A set of accounting information for a EUR EUR
legal or business entity
• 11i & Prior = Sets of Books= 3 C’s: Single Subledger
transaction
Currency, Calendar, Chart can create multiple
• R12 = Ledgers =4 C’s: Currency, Dr Cr
accounting
representations
Calendar, Chart, Convention Subledger and in multiple
Benefits : Accounting currencies

• Makes it easy consolidation for

Multi-National Companies
• Decision-driving business
information always available Payables Invoice

• Simpler processing and General  Open/Close Periods

Ledger management
• Data and definitions that can be
shared and secured benefits
 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
 Create Financial Statements that Include Data for
Multiple Ledgers
Finance (R12 Features) -6 Major Initiatives
 Subledger Accounting (SLA Replaces MAC)
• Rule-based accounting engine, toolset &
General
GeneralLedger
Ledger
repository supporting Oracle E-Business
3rd Party
Multiple accounting representations for a Systems
single business Transaction- resolving Dr Cr
SLA = Centralized Accounting
conflicts between corporate and local Model,
Rules, Engine and Repository
fiscal accounting requirements
• Retains most granular level details in SLA
model, with different summary options in
GL -full auditability and reconciliation Inventor Receivables Projects
y
• Manufacturing Accounting 3rdParty
Systems
Controller(MAC) removed – check Work in Purchasing Payable
Process s
customizations
 MOAC : Multi-Org Access Control
India South Africa US
Perform multiple tasks across operating
Legal Entity Legal Entity Legal Entity
units without changing responsibilities:
• Order Management
• Dunning, Collections, Billing
• Requisition, Demand & Purchase India South Africa South Africa
Orders Operating Unit Operating Unit Operating Unit

• Receiving & Drop Ship

• Invoice Receipt, Disbursement Responsibility Responsibility Responsibility
• Customer Data Management
• Accounting Setup
Finance (R12 Features) -6 Major Initiatives
 Intercompany
 Secured Central Intercompany Accounts Internet Purchasing
 Configurable Approval Rules and transaction Expenses
control Internet
Procurement
 Generate Subledger invoices Tax
General
 Tax Engine (Including India Ledger Transaction
s Tax Payables
Localizations)
Setup/Rules
 Automation- Tax setup and rules content for
certain countries Receivables
Inter-Company
 Constant Changes in Tax Laws Regulations Order Invoicing
– Date effectively and tax rule flow Management
 Local Compliance - Tax registrations and tax
reporting codes

 Bank Model
LE
• Bank account is now associated with LE entity OU A OU B OU C
rather than Operating Unit
• Single bank account serves multiple Operating
Units
• Enhanced Reconciliation Inventory Receivables Projects

• Supplier & Customer Banks in TCA -Flexibility Work in Process Purchasing Payables Assets
Major Order Management and Shipping Enhancements in R12
New Features in R12 Order Management and Shipping

Multi-Organization Access Control (MOAC)

Multi-Org Access Control enables uses to access multiple operating units data from
single responsibility. Users can access reports , Concurrent programs , all setup
screens of multiple operating units from single responsibility without switching
responsibilities. They can also use Order Import to bring in orders for different
Operating Units from within a single responsibility.
The same applies to the Oracle Order Management Public Application
Program Interfaces (APIs).

Post Booking Item Substitution

Item Substitution functionality support has been extended to post-Booking through
Scheduling/re-scheduling in Sales Order, Quick Sales Order, and Scheduling Order
Organizer forms. Item Substitution functionality is also supported from Planner’s
Workbench (loop-back functionality) till the line is pick-released.

Item Orderability
Businesses need the ability to define which customers are allowed to order which
products, and the ability to apply the business logic when the order is created.
New Features in R12 Order Management and Shipping

Mass Scheduling Enhancements

Mass Scheduling can now schedule lines that never been scheduled or those that have
failed manual scheduling. Mass Scheduling also supports unscheduling and rescheduling

Exception Management Enhancements

Improved visibility to workflow errors and eases the process of retrying workflows that
have experienced processing errors

Cascading Attributes
Cascading means that if the Order header attributes change, the corresponding line
attributes change

Customer Credit Check Hold Source Support across Operating Units

Order Management honors credit holds placed on customers from AR across operating
Units. When Receivables places a customer on credit hold a hold source will be created
in all operating units which have:
 A site defined for that customer
 An order placed against that customer
New Features in R12 Order Management and Shipping

Pick Release enhancements

Enhancements will be made to the Release Sales Order Form and the Release Rules
Form to support planned cross-docking and task priority for Oracle Warehouse
Management (WMS) organizations. Pick release will allow a user to specify location
methods and if cross-docking is required, a cross-dock rule. The task priority will be
able to be set for each task in a sales order picking wave when that wave is pick
released. The priority indicated at pick release will be defaulted to every Oracle WMS
task created

Parallel Pick Release Submission

This new feature will allow users to run multiple pick release processes in parallel to
improve overall performance. By distributing the workload across multiple processors,
users can reduce the overall time required for a single pick release run
Order Management (OM) – Impact of Inv. Convergence
11i
R12

OPM Order Oracle Order

Inventory Management Inventory Management

• Single Oracle Inventory: integrated with Order Management

• Reservations: Sales order can be reserved against a PO or batch (WO)
• Automatic creation of a batch: from a sales order line for Make to Order
• Item order quantity: Dual UOM and lot control allowed
• Pricing: An item can be tracked in two units of measure and priced in either
• Picking: Accept Picking rules in Oracle Inventory and WMS
• Shipping: Warehouse Management System (WMS) transactions supported
• Material status and grade: Status is used to determine if inventory can be
picked or shipped. Grade to determine priority
• Move Orders: Allowed for Process transactions
Major ASCP Enhancements in R12
Advanced Supply Chain Planning (ASCP)

 ASCP replaces OPM Planning

• OPM MRP will not be used and all OPM planning can only utilize ASCP

 ASCP Data Collection

• New architecture resolves data collection issues in 11.5.10 due to incorrect Org setup.

 Support for Complex Routings

• Process can start with multiple operations executing at the same time

• Multiple operations can yield multiple co-products and Multiple Terminal Points

 Contiguous Operations
• Contiguous processing supported in production from raw materials to finished product
Advanced Supply Chain Planning (ASCP)

 Item Substitution
• Effectively Date Support

 Shelf Life :

• ASCP respects the expiration date of on-hand lots when pegging them to demand

 Firming Feedback directly from ASCP to OPM

• Productivity feature

 Sequence Dependent Setups

• Derive sequence that minimizes the overall time spent on setting up the resources
Impact on Custom Objects in R12 Upgrade
Technical Considerations

Existing Custom objects in Oracle 11i would get impacted in R12 due to following major
changes:
 Affect of Inventory Convergence on existing customizations
– The existing customizations will need to be modified to reference the Oracle inventory and
changed organization structure
– Customizations currently referencing OPM standard tables and API’s will need to be revisited
 Change in the transaction types
– The OPM Inventory Transaction types are obsolete in R12 and are mapped to / replaced by
the oracle inventory transactions
 OPM Financials MAC is obsolete in R12
– Customizations that are either referencing to the MAC tables or built on MAC / OPM
Subledger will need to be modified
Technical Considerations
Impacts on OPM Tables and API’s
OPM API’s are enhanced to support inventory convergence and new organization structure. Examples
of such API’s:
– GMD_FORMULA_PUB
– GMD_RECIPE_HEADER
– GMD_RECIPE_DETAIL
OPM Inventory Posting API and respective functions are retired. Similarly, few API functions are
replaced. Example:
GME_API_PUB.insert_line_allocation  GME_API_PUB.create_material_txn)
Below mentioned are examples of the few OPM tables impacted due to inventory convergence
OPM Table Inventory Table Comments
IC_ITEM_MST MTL_SYSTEM_ITEMS_B
IC_TRAN_PND MTL_MATERIAL_TRANSACTIONS
IC_TRAN_CMP MTL_MATERIAL_TRANSACTIONS
IC_LOCT_INV MTL_ONHAND_QUANTITIES
For only the warehouses converted
IC_WHSE_MST MTL_PARAMETERS to the I/O
For only the OPM Organizations
SY_ORGN_MST MTL_PARAMETERS converted to the I/O
The IC_ITEM_CNV is obsolete but
the data will remain in the
IC_ITEM_CNV MTL_UOM_CONVERSIONS inventory tables
* This is only a potential direction and not the comprehensive list of the tables and API’s. Further analysis needs to be worked out, which will be specific to
the implementation
Upgrade vs Re-implementation
Upgrade vs Re-implementation

There is no right or wrong answer for whether the client should do upgrade or re
implementation of R12 but you would consider doing a reimplementation under
circumstances such as:

 You wish to change configurations that are not easily changed, such as your chart of
accounts definition, costing method, or calendar.

 You are merging several E-Business Suite instances with different charts of accounts,
costing methods, or calendars into a single global instance and you would like to “start
fresh”, taking full advantage of new Financials features such as secondary ledgers.

 You have a heavily customized Oracle 11i implementation originally. Then it would
make sense to re-implement R12 as some of the customized functionality may be there
in the new release.
Upgrade vs Re-implementation

 Your enterprise has undergone significant change in the number and structure of its
business units and organizations since your original Oracle implementation. For
example, you have grown through acquisition and you want to establish a new
standard applications setup for all of your business units, which are currently running
disparate application systems. You could freshly implement Release 12.1, and then
migrate historical data from your existing businesses, even if some of those businesses
were running E-Business Suite.

 You have integrated other 3rd Party application that could be replaced with new
Oracle Applications modules, features or functionality

If none of the above applies to you, then it makes sense to go for R12 upgrade
Recommended Approach - R12 Upgrade, ASCP & PS implementation

Though each project requires a different approach to Release 12i upgrade and there is
no right or wrong approach but we think that a phased approach to upgrade poses less
business risk and require short downtime for upgrade

Step 1: Complete a database upgrade and an upgrade to middle tier hardware

and OS to a minimum level required by R12 as separate projects, well ahead of the
Release 12 application upgrade.

Step 2: Complete a minimal Upgrade from 11i to Release 12.1 with the same setups and
functionality, plus some additional, default functionality around tax, sub ledger accounting,
ledgers and payments. You then have the option to implement additional new functionality
either immediately, as part of the same project, or in a subsequent project.

Step 3: Regardless of how you adopt Release 12.1, it provides the foundation for over 300
new features. Some of them we’ve highlighted in the earlier slides.
You can analyze the new features and implement them at your own pace at any time
after your upgrade
Recommended Approach - R12 Upgrade, ASCP & PS implementation

Step 4 : Regardless of whether the client upgrades to R12 or not, client can implement R12
ASCP and PS with existing 11510. We can have a separate R12 planning instance which is
completely integrated with both 11.5.10.2 and/or R12 OPM Instances

OPM 11i to R12

DB/OS/H/W upgrade applications upgrade R12 Enhanced
and Implementation features

Step 1 Step 2 Step 3

Step 4

ASCP & PS implementation

Other Questions

How much time will it take for the Client to upgrade from 11i to R12?

The time for upgrade varies from client to client depending upon the complexity
and the customization of the original implementation.

However, based on our experience, it normally takes anywhere between 6

month to 9 month.
We need more information about your current OPM implementation in order to
guide you further on the timelines.
Q&A

About the Company

Rapidflow Apps was founded with the sole objective of providing high quality, innovative and practical
solutions to the real world business problems of our clients in the areas of Supply Chain Planning, Product
Lifecycle Management, Master Data Management and Business Intelligence. Visit our website for more
details- www.rapidflowapps.com

If you have any feedback, please write to us at feedback@rapidflowapps.com

For services, please contact us at info@rapidflowapps.com

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Disclaimer

The information contained in this presentation is for information purpose only and is
based on the personal experience of the presenter and publicly available material on the
subject.
The presenter is not responsible for the claims made about the product benefits by the
product vendor.

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