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 “cool 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 • Financial Consolidation • Self-Service Purchasing
• Customer Support • Online Candidate Registration • Sourcing
• Collections & Payments • Absence Management • Supplier Collaboration
• Loan Management • Salary Administration • Business Intelligence
New User Experience
New Background
Pattern

New
Buttons

New
Colors

New New
Fonts 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
Superior Ownership Experience
R12 - Single Page for Accounting Setup
•Legal Entities
•Ledgers
•Currencies
•Balancing
Segments
•Subledger
Accounting
•Operating
Units
•Balancing
Options
Oracle Financials
What’s New in Release 12
 What’s New in R12 Financials

6 Major Initiatives
1. Ledger and General
Ledger Ledger Sets
& Ledger
Ledger Sets
2. Subledger Dr Cr
Accounting Subledger Accounting (SLA)

3. MOAC
Tax Inter Bank
Engine Company
4. Intercompany Model

5. Tax Engine
6. Bank Model Multi-Org
Access
Control
Inventory Receivables Projects

Work in Process Purchasing Payables

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Ledgers and Ledger Sets

 Ledgers in Oracle
A set of accounting information for a legal or business entity

Each ledger is associated with a Chart of accounts, Calendar,

Currency, and Subledger Accounting Convention for which
accounting information is recorded

11i & Prior = Sets of Books R12 = Ledgers

3 C’s: Currency, 4 C’s:
Calendar, Chart Currency, Calendar,
Seeded Conventions: Chart, Convention

•Standard Accrual
•Standard Cash
•Accrual w/ Encumbrance
•Cash w/ Encumbrance
•US Federal Accounting
•China Standard Accrual
Multiple Accounting Representations
Parallel Financial Reporting with Ledgers

Ledger A Ledger B
French Rules US GAAP
French COA US COA
French Calendar US Calendar
EUR EUR

Single subledger
transaction
can create multiple
Dr Cr
accounting
representations
Subledger
and in multiple
Accounting
currencies

Payables Invoice
Multiple Ledgers
Primary Ledger
• the main “Activity” Ledger
• Usually in the local currency
• For Operational reporting

Secondary Ledger (ex. France requires Statutory Chart)

• Differs from Primary Ledger by Chart, Calendar, and/or Convention
• For Statutory, 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
 Ledger Sets
Global Information At A GlanceShare:
Ledger Set Chart of Accounts
Calendar

Ledger C

US GAAP
US COA
Ledger A Ledger B US Calendar
French Rules US GAAP USD
French COA US COA
French Calendar US Calendar
EUR EUR Ledger D
US GAAP
US COA
US Calendar
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
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
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Subledger Accounting
 Subledger Accounting
Centralized Rules, Common Repository: Global Control

• Internal control and

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

Ledger: FR Statutory
GL Date: 2-Mar-2006 Invoice Internal Identifier: 1001
Invoice# 100
Invoice #100 Ledger: US Corporate Invoice Internal Identifier: 1001
Supplier: ABC Networks
GL Date: 2-Mar-2006
ABC Networks
Invoice# 100
Supplier: ABC Networks

2 Monitors – Marketing $1000 DR CR

5 Printers – Marketing $ 500 Invoice Line 1

1 Expense 01-EXP-200 $1500 Invoice Line 2

Freight $ 100
2 Freight 01-FR-200 $100 Invoice Line 3
Tax $ 110
3 Tax 01-TX-200 $110 Invoice Line 4
Total $1710
4 Liability 01-LIAB-200 $1710
Transactions vs. 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, necessary to allow user input

• Most default SLA rules just ‘pass through’

the distribution accounts (where
applicable)
Streamline Accounting
Impacted Applications

• General Ledger • Payroll

• Payables • Property Manager
• Receivables • Loans
• Projects • Lease Management
• Assets (Post R12)
• Costing • Cash Management
• OPM • Globalizations
• Public • Intercompany
Sector/Federal
Subledger Journal Entry – more info
 Subledger Entry vs. GL Journal Entries
Many to One

Invoice No: 136274 GL Date: 01/27/07 Controlled by GL JE

3rd Party: Fender
SLA Summarization setting for
JE #1 101.100.63580.0000.720.000.000 6,000 each
EUR Subledger App
101.100.22100.0000.000.000.000 6,000 EURetc):
(AP, AR,
Summarize by GL Date,
Invoice No: 131299 GL Date: 01/27/07 by 3rdGL Period,
Party: or
Gibson
SLA No Summarization
JE #2 101.100.63580.0000.720.000.000 3,000 EUR
101.100.22100.0000.000.000.000 3,000 EUR

Invoice No: 116555 GL Date: 01/27/07 3rd Party: Kramer

SLA
JE #3 101.100.63580.0000.720.000.000 2,000 EUR
101.100.22100.0000.000.000.000 2,000 EUR

Batch: AP Invoices 27-Jan-07 GL Period: Jan-07

GL
JE #1 101.100.63580.0000.720.000.000 11,000 EUR
101.100.22100.0000.000.000.000 11,000 EUR
Upgrade Considerations
• By default, the R12 upgrade migrates at least 6
periods of accounting entries from each application
to the SLA data model.
• You can modify this if desired.

• For prior periods, the historical data is preserved.

You can drill from General Ledger to the historical
transactions using standard GL drilldown
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Multi-Org Access Control

(MOAC)
MOAC: Multi-Org Access Control
Role based access to Operating Units

Perform multiple tasks across operating units

without changing responsibilities

Belgium Holland Denmark

Functional Tasks
Legal Entity Legal Entity Legal Entity  Order Management
 Dunning, Collections, Billing
 Requisition, Demand &
Belgium Holland Denmark Purchase Orders
Operating Unit Operating Unit Operating Unit  Receiving & Drop Ship
 Invoice Receipt,
ResponsibilitySingle Responsibility Responsibility Disbursement
 Customer Data
Management
 Accounting Setup
 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 Subledger
Web UI
Invoices &
Documents

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

Dr Cr

General Subledger
Ledger 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)
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Tax Engine
 E-Business Tax
Centrally manage tax transactions across entire E-Business Suite
• Single Repository of
transactions for global
Purchasing business insight
Internet
Expenses • Centralized rules applied
Internet
Procurement
to transactions to manage
globally and reduce risk
General
Tax • Automation of tax
Transactions
Ledger processes on transactions
Payables to improve operational
Tax
efficiency
Setup/Rules
• Improved Reporting
Receivables
Inter-Company
• Effective Date Setup
Invoicing • Extensible architecture
Order
that supports additions,
Management
e.g. Self-assessed
Use Tax
 eBusiness Tax
Tax determination, not just tax codes…

Before R12 R12

• User determines tax by assigning • eBTax determines tax based on

Tax Codes facts about each transaction

• Tax rules in code • Tax rules you can see

• Global descriptive flexfields for • Tax attributes collected in fields on
country-specific tax attributes key entities

• Configure tax rules once per regime

• Granular setup at OU level and share with your legal entities

Facilitates compliance
Improves auditability
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Bank Model
Centralized Banking
Shared Services Disbursements
• Bank account is now
associated with LE entity
LE rather than Operating Unit
• Single bank account
OU A OU B OU C
serves multiple Operating
Units
• For Internal Banks and
Customer & Supplier
Banks
Inventory Receivables Projects
• Enhanced Reconciliation
Work in Process Payables Assets
Purchasing
PLUS:
 Centralized Credit Card Model
 Supplier & Customer Banks in TCA
Bank Model: Example of what you can do
Pay invoices from different OUs with 1 instruction
• New Payments Module
OU A
• New Bank Module
• New Bank & Credit Card
Features
OU B

OU C Single
Payment Bank Payments
Instruction

Sub Ledger
Accounting
Invoices
Banks Specify Legal Entity
Define Owner of Bank Account Owner

Where is Account
used?
Select Multiple LE’s,
OU’s, Currencies in
single Payment Run
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Miscellaneous
Cool Stuff…
Report Repository

Online “file cabinet” to

where Financial
Reports are published
Add Report to Menu
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
 Use Payment Template to
Default values

Pay Multiple Legal

Entities, Operating
Units, 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
Internet Expenses - Allocations

Edit Coding of
Expense Lines
Allocate Expense Lines
* even to Projects
Internet Expenses – Bar Coding

Bar Coding of
Expense Reports
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
Flexible Cash Positioning
Cash Positioning is a planning tool that allows you to view your daily cash
position by Bank Acct, Cash Pool, or Currency.

Automatically generate
cash transfers

Drill down to details

View by currency, bank

account or cash pool

Save Projected
Balances for Reporting

Online refresh capabilities

 “Cash Leveling”
Proposal – initiates
Bank Transfer
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Not Really R12 –

But still cool…
 Simplified Self-Service Reporting
BI (XML) Publisher
Reporting Evolution Benefits

• Replaces most standard reports • Put reporting in the hands of

with data extracts and
templates
• Merges custom templates and
data extracts at run-time
• Delivers output in PDF, HTML,
RTF, Excel (HTML), or text for
use with EFT and EDI
transmissions
the business user
• Create report formats using
desktop tools (Adobe
Acrobat, MS Word, MS Excel,
and XSL Editors)
• Publish in any format, to the
web and electronically
• Drive reporting consistency
with one source of data

“Oracle’s new XML Publisher is visionary and empowers end users. This new capability
gives customers the look and feel of Excel with a desktop publishing look to reports, and
enables users to create their own reports, minimizing the dependency on the IT staff.”
-- Sean Malinski, Accenture Partner, Global
Business Solutions - Oracle Practice
Old Standard Reports
New Standard Reports (HTML)
Oracle BI Publisher

• Many, many, many Standard Reports

• Multiple formats per report
• Merge Data with Contract Terms
• User-defined templates
• Boardroom Quality Output
Oracle Business Intelligence
Comprehensive View of Financial Performance

General Ledger & Profitability Analytics

Incorporates detail-level general ledger transactions and cash flow analysis
across locations, customers, products, sales territories, distribution channels,
and business units.

Identifies the customers and transactions that are providing maximum profits
by product, location, department, and geographic detail. When combined with
Marketing Analytics, it enables analysis of Campaign ROI and assists in
customer segmentation.

Payables Analytics
Provides visibility into payments due to suppliers and expense line detail so
managers can manage cash outflows and control expenses. When combined
with Supply Chain Analytics, it allows full procurement analysis from
Requisition to Check.

Receivables Analytics
Monitors collections processes to show what customers buy and how they
pay, enabling managers to identify overdue balances and other receivables
bottlenecks. When combined with Oracle Sales Analytics and Oracle Order
Management & Fulfillment Analytics, it enables more efficient management of
the entire Lead to Cash process.
Oracle Business Intelligence
 User Productivity Kit (UPK)
What is UPK …
… a comprehensive, cost-effective solution that helps your
organization quickly create critical documentation, training,
and support materials needed to drive project team and
increase user productivity throughout the lifecycle of your
software.

• You Perform a transaction, Record it, and Publish it

• Training Guides
• Web-based Training
• Job Aids
• Test Scripts

WORKS WITH 11.5.9 and above

 UPK Playback Modes

• See It!
Enables you to learn by watching an animated demonstration of
tasks being performed in a simulated environment.

• Try It!
Enables you to learn interactively in a simulated environment. The
Player provides you with instructions as to what needs to be done to
complete a task, but you perform the actual steps.

• Know It?
Enables you to test knowledge gained from training. You are
instructed to complete the steps for a particular task and are scored
on how accurately you complete the steps.

• Do It!
Guides you in the performance of the actual task in a production
environment. You learn by completing the actual task.
 New in Financial Control & Reporting
Highly automated financials processing drives efficiencies

• Centralized accounting setup

• Streamlined multiple ledger processing and reporting
• Parallel financial reporting EFFICIENCY
• Automatic reporting currency conversion
• Replacement for disabled accounts

• Data security across legal entities, ledgers or balancing

segment values FLEXIBILITY
• Control Accounts

• Accounting and reporting sequencing

AUDITABILITY
• Journal line reconciliation
 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 PRODUCTIVITY
• Real-time status of purchasing contract T&Cs and
invoicing activity in Oracle Payables and Purchasing

• Self-service opportunities via iSupplier Portal to a

broader set of their suppliers COST SAVINGS
• Self service entry extended to receipt matched,
complex Work Purchase Orders, and non-PO invoices

• Streamlined supplier setup and maintenance as part of

Trading Community Architecture (TCA) INTEGRATION
• Access to TCA features
 New in Credit-to-Cash
Accelerate cash cycle and manage revenue with fiscal discipline

• Daily revenue recognition

• Deferral reason for goods and services
COMPLIANCE
• COGS and revenue matching
• Line level cash application

• More efficient payment application with Oracle Payments

integration
• More targeted and efficient collections with configurable
matrix BETTER CASH FLOW
• Credit recommendation enhancements
• Conversion of delinquent receivables to payment plans

• Visibility to carry-forward balances with cycle-based

billing INDUSTRY SUPPORT
• Payment application according to customer preferences
 New in Cash and Treasury
Optimize Cash and Treasury Operations

• Centralized and consolidated bank model

• Single bank account shared by multiple organizations
EFFICIENCY
• 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
administration
• Straight through processing (STP) for payments COMPLEXITY
• Real-time visibility into cash inflows and outflows
• Large library of payment formats and validations

• Simplified reconciliation of bank statements to cash

transactions in multiple organizations
• Support for new bank account balance types in bank FLEXIBILITY
statement import
• Bank account-level reconciliation options and tolerances
 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

PERFORMANCE
Depreciation Rollback

• Group Assets to include “Units of Production” method

• Energy straight-line depreciation method INDUSTRY SUPPORT
• Asset impairment of a producing asset
 New in Travel & Expense
Lower the total cost of travel and expense

• CONUS and OCONUS global per diem rates LOWER COSTS

• Per diem and policy schedules

• Expense splitting across multiple accounting segments

ACCURACY
• Enhanced cost center and projects approvals

• Self-service cash advance application during entry

• Bar code generation
PRODUCTIVITY
• Streamlined receipts management with receipts tracking
and receipts missing capabilities
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Why Upgrade ?
Why Upgrade
Straight Talk from Customers
“We have 60 sets of books and see tremendous efficiencies with running
processes across these sets of books using Ledger Sets.”

“Ability 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.”

“Multi-Org Access Control (MOAC) will definitely reduce the workload and the
number of people performing process related tasks. The users are very excited
and the benefits of MOAC were readily visible to them.”

“The ability to access multiple operating units with a single responsibility can
simplify SOX compliance monitoring.”

“The functionality offered with Advanced Global Intercompany System (AGIS),

specifically the creation of physical invoices to be created for I/C transactions in
Payables and Receivables eliminates many customizations in this area.”

“Centralization of subledger accounting rules would minimize set up and

maintenance, providing greater financial control, and enforcing a consistent
approach for true global accounting.”
“Banks, taxes, payments, and accounting – everything that becomes centralized
will bring tremendous efficiencies to our organization.”
 Evolution of Oracle Financials
Base Differentiators…
• Daily business intelligence
for financials
• Global single instance and
shared service center
support
• Global language, 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.10…
• Compliance-driven financial
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, collections,
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, 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
Q&A