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New Features in R12 General Ledger

Feature Accounting Setup Manager Description Accounting Setup Manager is a new feature that streamlines the setup and implementation of Oracle Financial Applications. The Accounting Setup Manager will facilitate the setup required for simultaneous accounting for multiple reporting requirements. SLA is an intermediate step between subledger products and the Oracle General Ledger. Journal entries are created in Subledger Accounting and then transferred to Oracle General Ledger. Each subledger transaction that requires accounting is represented by a complete and balanced subledger journal entry stored in a common data model Benefits Accounting Setup Manager is a new feature that allows you to set up your common financial setup components from a central location.

Subledger Accounting (SLA)

Oracle Subledger Accounting offers unparalleled visibility into enterprise-wide accounting information with a single, global accounting repository. It addresses the concurrent needs for centralized accounting processes with strong internal controls and diverse accounting treatments. In summary, Oracle Subledger Accounting enables you to: Lower costs with streamlined accounting processes Meet diverse global accounting requirements and maintain internal controls Access better information and provide better reporting

Enhanced Foreign Currency Processing by Reporting Made easy

In R12, MRC feature is enhanced with a feature call Reporting Currencies. That mean it will now support multiple currency representations of data from any source, including external systems, Oracle or nonOracle subledgers, and Oracle General Ledger journals and balances. The second one is in reporting to view balances view balances that were entered in your ledger currency separate from those balances that were entered and converted to the ledger currency. The change in R12 is that balances entered in the ledger currency are maintained separately from balances converted to the ledger currency for use in Reporting and Analysis.

Data Access to Multiple Legal Entities and Ledgers Data Access Security for Legal Entities and Ledgers

Access to multiple ledgers from a single responsibility as long as all the ledgers share the same chart of accounts and calendar.

Enhanced Intercompany Accounting

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Ability to Create (AP and AR) Invoices Proration of Transaction Distribution Amounts Upload Transaction Batches created in Excel Flexible Approval Rules and Workflow Notifications Transaction Security Intercompany Reconciliation and Reporting

You no longer have to constantly switch responsibilities in order to access the data in a different ledger. You can access multiple ledgers from a single responsibility as long as all ledgers share the same chart of accounts and calendar. In R12, 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. 1) Oracle Advanced Global Intercompany System can create invoices in payables and receivables sub ledger from intercompany transactions. Using Oracle Advanced Global Intercompany System user can enter transactions for multiple recipients within a single batch. This allows user to submit intercompany transactions from one initiator to one or more recipients in a single batch. 2) When user allocates more than one distribution account in a batch that has multiple recipient





transactions, Oracle Advanced Global Intercompany System can automatically prorate the distribution amounts based on the recipient transaction amounts. The proration of amounts is also used by Oracle Advanced Global Intercompany System to adjust the distribution amounts in the batch when a recipient transaction is deleted or it is rejected. This was a missing link in the earlier version, as earlier product does not have capability to use direct upload functionality, rather than interfacing through Open GIS interface. In Release 12 ADI is heavily used in this module, which is replacement of external integration for AGIS System using by mean of Microsoft based Excel spreadsheet. Now flexibility is provided to user that can generate spreadsheet templates that have features of intercompany entry pages and using the templates the user can enter transactions in the spreadsheet and upload them into Oracle Advanced Global Intercompany System. The good thing has found the standard templates can be customized by removing or adding the entry fields from a list of available fields. This feature is used to create a template that contains only the entry fields that are important for the business. The required fields cannot be removed from the template. Once the templates are generated, user can save them in their local computer to reuse them in the future. In R12, AGIS very similar to other module, home page displays notifications about approval or rejection statuses of intercompany transactions. You should note that notifications can be sent to the users via email. The rules for approvals and notifications can be customized using Oracle Approval Management Engine (AME), which allows the user to add extra approval rules and hierarchies to suit their business needs. Intercompany transactions entry pages incorporate various security features. The user can enter transactions only for those intercompany organizations that are assigned to the user. Other security features include minimum transaction amount, control amount and function security. For example: Intercompany accountant processes intercompany transactions for many intercompany organizations in the enterprise. What is different between these two is: R11i - Each responsibility has only one subsidiary assigned, therefore a user can initiate intercompany transactions for one subsidiary from each responsibility. R12 - the user can initiate intercompany transactions for many trading partners without changing responsibility There are two new reports available in XML Publisher format. 1. Intercompany Transaction Summary report. 2. Intercompany Account Details Report. These reports replace reports that were available in the Global Intercompany System (GIS) in Release 11i. The new reports offer all of the functionality of the obsolete reports plus additional benefits.

New Features in R12 Accounts Receivables

Feature Revenue Recognition Description R12 revenue recognition is based on Rules and Events, and they are: Benefits

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Time-Based Revenue Recognition o Ratably Over Time o Upon Expiration of Contingencies Event-Based Revenue Recognition o Payment o Customer Acceptance Rule-Based Revenue Recognition o Payment Term Thresholds o Refund Policy Thresholds o Customer Credit worthiness

Daily Revenue Recognition o Revenue distribution over full as well as partial accounting periods. o Fulfills stringent accounting standards o Accuracy to the number of days in the accounting period. Enhanced Revenue Contingencies : o Fully Supports US GAAP and IAS o User definable contingencies o User definable defaulting rules for contingencies assignment o Supports parent-child (e.g. Product and Service) relationship o Integration with Order Management and Service Contracts o User Interface as well as Programming Interface (API) support o Access control through seeded Revenue Managers Responsibility


Multi Org Access Control

Deferred Revenue Management Event-Based Revenue Management in Oracle Receivables allows users to define revenue deferral reasons or contingencies and corresponding revenue recognition events. In Release 12, revenue contingencies for customer acceptance that are applied to goods sold in Order Management are now applied to services sold to cover those goods. Revenue is deferred for service ordered in both Order Management and Service Contracts. Acceptance contingencies associated with an item instance are automatically applied to service revenue associated with the item instance when it is covered in a Service Contract as a Covered Product. Revenue for services on other covered levels, subscriptions and usage is not impacted by contingencies applied to goods associated with those services. This enhances you by enabling and performing tasks across operating Units (OUs), where you have access to without changing responsibilities. As we know, MOAC 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. In nutshell, once MOAC is enabled, then you can:

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Perform Setups for any OU Enter invoices across OUs Receive Cash for any OU Manage Customer Credit across all OU Run reports across OUs

Because of this greatly enhanced Role based security options, the ability to access multiple operating units with a single responsibility can simplify SOX compliance monitoring from finance controller side. Line Level Cash The Line Level Cash Applications solution allows the application of receipts to specific transaction items such as

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Apply to specific lines or groups of lines Indicate when tax, freight or finance charges only are


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.


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Make changes as needed Easily view activity against receipts Know what historical activity affects your receipt See what prior activity affects a new application

Enhanced Customer Screen

The AR Create Customer page in R12 has eliminated the navigation to separate windows. Now, users can specify the following on a single page: y Customer Information y Account Details y Address y Account Site Details y Business Purpose

We have seen 11i Customer standard forms makes easier by simple navigation. This time there is clearer separation of the party and account layers, which makes a consistent look and feel. More over full backward compatibility with 11i UI Bill Presentment Architecture has been provided.


Late Charges

As we know oracle 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.

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. With new changes these are the enhanced functionality:

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Expanded assessment and calculation capabilities Tiered charge schedules Penalty charge calculation Integration with Balance Forward Billing Centralized setup and maintenance of late charge policies

AP AR Netting Balance Forward Billing

Balance Forward Billing provides the ability to setup cyclebased billing at the account or account site levels, enable event based billing, and leverage user configurable billing formats provided by Oracle Bill Presentment Architecture.

Calculation performed independent of Dunning and Statement processing The matching of open receivables and open payables is automated. 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. A typical case can be best understood as Payment Term defaults

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from Site profile if Bill Level = Site from Account profile if Bill Level = Account Billing Date derived from transaction date and billing cycle Due Date derived from billing date and payment term Optionally select non-Balance Forward term if Override Terms = Yes

New Features in R12 Accounts Payables

Feature Supplier Description A vendor, or a supplier, is anyone who provides goods or services to a company. A vendor often manufactures inventoriable items, and sells those items to a customer. In R12    Benefits

Supplier becomes as TCA Party. Suppliers Sites as TCA Party Site for each distinct address. Contacts for each supplier/address , it means Single supplier address and contact can be leveraged by multiple sites, for each


OU A single change to an address can be seen instantly by all OUs No longer need to manually 'push' updates across OUs Till 11i version, we have seen invoices: Had only distributions line. Allocation of freight and special charges are captured at the distribution level only Tax and payment and Project accounting Payment was captured through global Descriptive Flexfields. But in R12, 1. Invoice Lines as a new additional line accommodated in Invoice data model. 12RInvoice Because of introduction of invoice line there is significant improvement of data flow with n other oracle modules like Fixed Asset - Asset Tracking Business Tax - Tax line Payment - Payment Subledger Accounting - Accounting 2. Allocate freight and special charges are captured to the lines on the invoice 3. Invoice distributions created at the maximum level of detail similar to 11i. 4. Core functionality The impact with Upgrade can be summarized as: 1. One invoice line for every distribution in 11i 2. Sub Ledger Accounting requires that Payables transform the invoice distributions to be stored at the maximum level of detail 3. Global Descriptive Flexfields migrated to named columns. 1) In 11i we have seen internal Banks defined in AP and that is shared by AP/AR/CE, Payroll and Treasury and they are bank accounts often replicated in multiple OUs. Where as in R12, Bank and Branch become part of TCA Parties. Internal Bank Account in Cash Management which is owned by a Legal Entity. Here the Operating units have granted usage rights. 2) In 11i, Banks/Branches defined in AP. Bank accounts often replicated in multiple OUs before. In R12, Suppliers, Banks and Branches are defined as Parties in TCA. Supplier (party's) payment information and all payment instruments (Bank Accounts, Credit Cards) moved into Oracle Payments.

Banks and Bank Details

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Internal Bank Accounts Supplier Bank Accounts

Impact of Upgrade 1. With Upgrade banks and branches migrated to TCA parties 2. Banks merged if the following attributes are all the same: a. Bank Number b. Institution type c. Country d. Bank admin email e. Bank name alt f. Tax payer ID g. Tax reference number h. Description, Effective dates 3. Bank accounts, bank account uses are migrated into cash management. 4. Transactions are stamped with the bank account uses identifiers as part of the upgrade. Impact of Upgrade 1. Payables Tax setup, Tax Code defaulting rules defined per OU are migrated to E Business Tax. 2. OUs migrated to tax content owner in R12 3. Tax information in tax codes are transformed to Regime-Rate flow. 4. E-Business Tax takes information from the AP invoice lines and creates summary and detail tax lines in the E-Business Tax repository.

Integration with Oracle E Business Tax

In 11i

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In R12

Oracle standard functionality was based out of User which determines tax by assigning Tax Codes at line level of invoice and Tax rules was controlled at underline code. There was global descriptive flex fields were captured for countryspecific tax attributes. More important most of the setup performed at OU level. A new module E - Business Tax determines tax based on facts about each transaction, this is reason why Oracle has introduced additional line information at invoice level. The module "E - Business Tax" set and configure Tax rules which can be viewed Tax attributes collected in fields on key entities Configure tax rules once per regime and share with your legal entities

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New Features in R12 Projects

Enhancements for Project costing New Features y Labor Cost Processing for Contingent Workers - Timecard and PO can be linked y Changes with respect to Oracle Payables Invoice Lines new feature y Adjust supplier cost in Oracle Project Costing under certain conditions y New mass adjust concurrent process y Oracle Payables now provides a drilldown to the Project Expenditure Inquiry window from the invoice workbench. y Integration with Oracle Project Manufacturing y Integration with Oracle E-Business Tax y Customers can now be attached at Top Task y Invoice Method at Top Task: Enables to invoice customers with different methods such as, fixed price and time and materials, within the same project. y Invoice Write-Off at line level y Invoice Concessions for credit memos y Project functional currency conversion attributes y Enhanced Billing Review with New Interface y Integration with Oracle Sub-ledger Accounting y Multi-Org Access Control y Separation of Reporting and Planning Resources y Increased granularity for planning and reporting against inventory items and manufacturing resources through increased integration with SCM.

Project Billing

Project Foundation

Oracle Project Management

Oracle Project Portfolio Analysis

Resource Breakdown Structure enhancements Define and utilize contingent workers on projects in the same capacities and manner as employees. Enhanced Configurability of Project Home, Project List, Workbench and Page Layouts Element level options while coping a project to create another project Supports dependencies between tasks within a single project or across projects. Now can assign planning resources to tasks, including people, equipment, material items, and financial resources. y Can associate workflow to tasks that can be configured to send notifications depending on various businesses. y Expanded Integration with Microsoft Project y Can define the deliverables for a project, including all the associated actions needed to complete each deliverable. Project Portfolio Analysis is a new product helps companies align their portfolios of projects and programs with their organizational objectives by taking advantage of Oracle Project s standard project criteria, project scoring and ranking, and what-if portfolio scenarios. y y y y y y

New Features in R12 HRMS

Feature Checklists More . Some HR actions, such as employee hiring, transfer, or termination, require the completion of standard tasks, such as printing contracts, reassigning resources, and creating users. The checklist functionality in Oracle HRMS enables you to link the HR action to a life event and generate To Do lists or checklists when the life event is initiated. Oracle HRMS Global Deployments function controls the temporary or permanent transfer of an employee to a different business group by means of a deployment proposal. In the case of secondments, which is a temporary transfer from the home business group to the host business group, at the end of which the employee will return to the Home business group, the employee in the home BG is not terminated and he/she will continue to be an employee. Combines objective setting and appraisal processes into a manageable plan to track. Allowing consistency enforcement via corporate objectives and eligibility criteria, tracking objectives with copying and duplicating objectives for multiple appraisals during a period. New UI with the ability to delete, allow for gaps, end dating, retroactive and future changes in salary proposals. Display current grade and step on assignment with FTE on salary proposal. Viewing salary history of terminated employees. Manage budget awards across multiple currencies, business groups and compensation types in a single worksheet with a new task oriented interface with worksheet that can be personalized. Integration points between Oracle Incentive Compensation and Compensation Workbench are established so that target amounts, actual amounts, and commissions can be displayed on the worksheet. You now have the ability to change a manager s location, organization, and supervisor within Compensation Workbench.

Global Deployment

Workforce Performance Management Salary Administration Compensation Workbench