E-Business Suite Release 12

The Global Business Release

Release 12 Enhancements in Financials

R12 New Features in Financials

‡ Oracle General Ledger ‡ Oracle Payables ‡ Oracle Cash Management ‡ Oracle Assets ‡ Oracle Receivables ‡ Tax Manager (E-Business Tax)

2

R12 New Features in Financials

3

R12 New Features in Financials

‡ Oracle General Ledger

4

Overview
‡ Oracle General Ledger delivers extraordinary enhancements in this release so you can maximize accounting process efficiencies across your enterprise while still achieving a high level of information and setup security. ‡ Fundamental improvements in Oracle General Ledger enable you to perform simultaneous accounting for multiple reporting requirements and allow superusers to access and process data for multiple ledgers and legal entities at the same time powering ledger and reporting shared services.

5

Features ‡ Accounting Setup ‡ Improved Processing Efficiency ‡ Data Security ‡ Auditability ‡ Others 6 .

‡ Enhanced Reporting Currency Functionality Multiple Reporting Currencies functionality is enhanced to support all journal sources. ‡ Centralized Accounting Setup The Accounting Setup Manager is a central location to define your accounting-related setup across all financial applications. Reporting sets of books are now simply reporting currencies. 7 .Accounting Setups ‡ Simultaneous Accounting for Multiple Reporting Requirements Oracle General Ledger simplifies the simultaneous management of the accounting for all of the different reporting requirements in this latest release.

‡ Simultaneous Opening and Closing of Periods for Multiple Ledgers The Open and Close Periods Programs has multiple enhancements. 8 .Improved Processing Efficiency ‡ Simultaneous Data Access to Multiple Legal Entities and Ledgers You can access multiple legal entities and ledgers when you log into Oracle General Ledger using a single responsibility. You are able to run any of the Open and Close Periods Programs from the Concurrent Manager. ‡ Cross-Ledger and Foreign Currency Allocations You are able to allocate financial data from one or more ledgers to a different target ledger.

Financial Reporting Across Ledgers You are able to run Financial Statement Generator (FSG) reports for multiple ledgers simultaneously. ‡ ‡ 9 .Improved Processing Efficiency ‡ Simultaneous Currency Translation of Multiple Ledgers If you manage multiple ledgers. you can run the Translation program for multiple ledgers simultaneously. Automatic Journal Copy You are able to automatically copy an existing journal batch to create a new journal batch with the same journals and journal lines.

10 .Improved Processing Efficiency ‡ Streamline Automatic Posting AutoPost Criteria can be shared across ledgers that have the same chart of accounts and calendar. ‡ Replacement for Disabled Accounts You can prevent transactions that include the account from erroring during journal import by defining a replacement account for the disabled account.

‡ Management Reporting Security You can designate any segment (except the natural account segment) of your chart of accounts to be your management segment. 11 . or even balancing segment values or management segment values. ledger.Data Security ‡ Data Security across Legal Entities and Ledgers Oracle General Ledger provides you with flexible ways to secure your data by legal entity. ‡ Control Accounts You are able to control data entry to an account by ensuring it only contains data from a specified journal source.

‡ Journal Line Reconciliation This feature enables you to reconcile journal lines that should net to zero.Auditability ‡ Accounting and Reporting Sequencing You can assign sequence numbers to journals during the posting process to ensure that finalized journal entries are properly sequenced. 12 .

This enables you to pre-define journals that are recurring in nature and that are in foreign currencies. ‡ GL Standard Reports Integration With XML Publisher Oracle General Ledger¶s Account Analysis. 13 .Others ‡ Entered Currency Reporting and Analysis Oracle General Ledger tracks the balances that are entered in your ledger¶s primary currency. General Journals and Trial Balance standard reports are now integrated with XML Publisher. ‡ Foreign Currency Recurring Journals You can use Recurring Journals to create foreign currency journals.

R12 New Features in Financials Oracle Payables 14 .

Overview ‡ Oracle Payables provides the integration and flexibility you need to efficiently manage disbursements while keeping strong controls over matching. and payments. budgets. 15 . approval processes.

Branches.Features ‡ ‡ ‡ ‡ Multi-Org Access Control New User Interface for Supplier Entry and Maintenance Introduction of Invoice Lines Enhanced Invoice Approval Includes Line Level Approval ‡ Invoice Processing for Contract Financing. and Accounts ‡ Accounts Receivable / Accounts Payable Netting 16 . Retainage. and Progress Terms ‡ Enhancements to Payment Banks.

process. 17 . and report on data for an unlimited number of operating units within a single applications responsibility.MultiMulti-Org Access Control ‡ Multi-Org Access Control Multi-Org Access Control enables companies that have implemented a Shared Services operating model to efficiently process business transactions by allowing them to access.

18 .New User Interface for Supplier Entry ‡ New User Interface for Supplier Entry and Maintenance This new user interface presents a clear distinction between the supplier¶s company details and terms and controls for the trading relationship.

freight. 19 . Invoice Lines supports the representation of the goods or services as well as tax. Merged into the current invoice transaction business flows.Introduction of Invoice Lines ‡ Introduction of Invoice Lines Oracle Payables incorporates Invoice Lines into the invoice model. and other charges as lines with distributions tied to each line.

users are able to further extend their approval policy granularity in Oracle Approvals Management for individual lines of an invoice. 20 .Enhanced Invoice Approval Includes Line Level Approval ‡ With the introduction of Invoice Lines.

21 .Invoice Processing for Contract Financing. Retainage. Retainage. ‡ Financing: Advances and Progressive Contract Financing Oracle Payables ensures that the amounts financed are recovered by automatically applying financing to subsequent invoices per the specific terms captured in the purchase order. and Progress Terms ‡ Complex payment terms and conditions for fixed price contracts is captured during the procurement contract flow.

22 . ‡ Invoices for Progress Invoices representing progress are matched to the purchase order.Invoice Processing for Contract Financing. updating the purchase order with the progress. Payables automatically retains per the purchase order on invoices coming in and supports the retainage release and payment process. and Progress Terms ‡ Retainage and Retainage Release As the agreed event occurs the supplier requests the amount retained and payment is made to release it. Retainage.

Branches. and Accounts ‡The Bank Account is centrally defined.Enhancements to Payment Banks. managed and secured and includes the legal ownership and operating unit access for each bank account. 23 .

Along with a new user interface. the management and visibility of the payment process are much more robust and easier to use.Payment Process Enhancements ‡ Payment processing is significantly enhanced with this release. 24 .

Accounts Receivable / Accounts Payable Netting ‡ Netting Agreements add trading partner terms as well as deploying company controls. late fees. A selection program automatically pulls information from Oracle Receivables and Oracle Payables taking into consideration discounts. and withholding taxes prior to determining the final netting amount. 25 .

R12 New Features in Financials ‡ Oracle Cash Management 26 .

Overview ‡Oracle Cash Management is an enterprise-wide solution for managing liquidity and controlling cash. 27 .

Features ‡ Bank Account Model ‡ Multi-Org Access Control ‡ Subledger Accounting ‡ Bank Account Balances and Interest Calculation ‡ Bank Account Transfers ‡ Bank Statement Accounting ‡ Bank Account Signing Authorities 28 .

Oracle Receivables. Oracle Payroll. Oracle Cash Management. Bank account access for each application is explicit for internal security and control purposes. 29 . and Oracle Treasury.Bank Account Model ‡ It provides a single access point for defining and managing internal bank accounts for Oracle Payables.

. process. ‡ This increases the productivity of Shared Service Centers for users no longer have to switch applications responsibilities when processing transactions for multiple operating units at a time. and report on data for an unlimited number of operating units within a single applications responsibility.Multi-Org Access Control ‡ Multi-Org Access Control enables companies that have implemented a shared services operating model to efficiently process business transactions by allowing them to access.

. transferred. they are summarized. ‡ Users can also add detailed transaction information to journal headers and lines. auditing. imported and posted to Oracle General Ledger. Detailed subledger accounting journals are available for analytics. and reporting.Subledger Accounting ‡ Oracle Cash Management utilizes Oracle Subledger Accounting for setting up accounting rules and for generating journal entries related to Cash Management transactions.

‡ The system allows the user to verify interest amounts charged or credited by their banks based on balance history and user-defined interest rate schedules. .Bank Account Balances and Interest Calculation ‡ Flexible reporting tools are available to view all this centrally stored balance history for trend analysis as well as to compare actual versus expected balances based on daily cash position projections.

.Bank Account Transfers ‡ This feature allows users to create these types of cash transfers between internal bank accounts manually or automatically through physical cash pools. ‡ The related cash flows are stored in Oracle Cash Management for reporting purposes and are reflected in positioning.

.Bank Statement Accounting ‡ This feature allows users to define mapping rules that can automatically create and reconcile transactions in Oracle Cash Management based on reported prior-day bank statement lines. ‡ This feature significantly reduces reconciliation issues associated with repetitive first notice items like bank fees or bank account interest.

. Users are able to indicate single and joint signing limits for each bank account as well as signer group categories. and other relevant information. maintain. approval status. and report on those people in their organizations with bank account signing authority.Bank Account Signing Authorities ‡ This feature allows Oracle Cash Management users to enter. effective dates.

R12 New Features in Financials ‡ Oracle Assets 36 .

ensures maintenance of accurate property and equipment inventory as well as optimal accounting and tax strategies. a comprehensive asset management solution. 37 .Overview ‡ Oracle Assets.

Features ‡ Enhanced Mass Additions Interface for Legacy Conversions ‡ Automatic Preparation of Mass Additions ‡ Flexible Reporting using XML Publisher ‡ Automatic Depreciation Rollback ‡ Enhanced Logging for Asset Transactions and Programs .

and others can now be directly imported from your legacy system instead of being derived from asset category setups. bonus rule ceiling name. prorate convention. depreciation limit. Attributes such as asset life. . depreciation method.Enhanced Mass Additions Interface for Legacy Conversions ‡ Additional attributes are available in the Mass Additions interface to ease legacy data conversions.

location etc.Automatic Preparation of Mass Additions ‡ A set of extensible public API¶s is available to automatically prepare a mass addition line for all required attributes such as depreciation expense account. . with the goal of minimizing manual intervention by the user in the mass additions workbench. asset category.

With XML Publisher. . you can display reports in variable formats by creating your own templates using familiar tools such as Acrobat. Word and Excel.Flexible Reporting using XML Publisher ‡ Oracle Assets leverages the Oracle XML Publisher technology to support major asset transaction reports.

‡ Oracle Assets automatically rolls back the depreciation on just the selected assets (instead of the whole book) and allows the transaction(s) to be processed normally. As before users may submit depreciation for the entire book prior to closing the period. .Automatic Depreciation Rollback ‡ In new Release the intermediate manual step of rolling back depreciation for the entire book in order to process further adjustments on selected assets is no longer necessary.

Enhanced Logging for Asset Transactions and Programs ‡ Through the common logging architecture. This reduces resource usage on the file system for excessively large log files. . Oracle Assets ensures a common repository for all log messages within and outside the product.

R12 New Features in Financials ‡ Oracle Receivables 44 .

deduction.Overview ‡ Oracle Receivables is an invoicing. . and revenue management application that streamlines your order-to-cash process while providing strong financial controls and strategic financial information. payment.

Features ‡ ‡ ‡ ‡ Line Level Cash Applications Refunds Enhancements Late Charges Customer Standard User Interface Redesign .

Line Level Cash Applications ‡ The Line Level Cash Applications solution allows the application of receipts to specific transaction items such as individual lines. groups of lines. or tax or freight buckets. .

Refunds Enhancements ‡ 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.

.Late Charges ‡ Receivables delivers enhanced Late Charges functionality enabling the creation of standard late charge policies that can be assigned to customer accounts or account sites.

. Customer data entry is tightly coupled with data quality management tools to maintain the integrity of customer data.Customer Standard User Interface Redesign ‡ The Customer Standard form has been redesigned as an HTMLbased user interface to provide a more streamlined and intuitive customer data management flow.

R12 New Features in Financials ‡ Oracle E-Business Tax E- 51 .

.Overview ‡ Oracle E-Business Tax is a new infrastructure for tax knowledge management and delivery using a global system architecture that is configurable and scalable for adding country specific tax content. Oracle EBusiness Tax uniformly delivers tax services to Oracle E-Business Suite business flows through one application interface. As the single point solution for managing transaction-based tax.

Features ‡ ‡ ‡ ‡ Events and Configuration Owner Options Tax Configuration Manager Tax Determination Services Centralized Tax Record Repository for Audit and Reporting ‡ Tax Reporting ‡ Tax Simulator .

Events and Configuration Owner Options ‡ Users have greater granularity in defining tax control options. Allow manual tax lines to be entered IV. Allow recalculation of manual tax lines V. . Control options include: Define rounding level II. ‡ A configuration owner can define control options for a tax event class or at a lower level such as a particular application document. Allow self-assessment for imported documents I. Allow override of calculated taxes III.

the building blocks. fiscal classifications. is stored in a centralized repository.Tax Configuration Manager ‡ The Tax Configuration Manager component is responsible for creating and maintaining the structural foundation of tax. tax jurisdictions. tax rules. tax rates. . This tax content information such as taxes.

Determining how they should be calculated. Producing the results from the calculation. the tax registrations of the parties involved. and other applicability rules. II. III.Tax Determination Services ‡ The Tax Determination Services component calculates transaction taxes based on transaction details and tax setup information. ‡ This component is involved in the following: I. Automatically determining which taxes are applicable for the transaction based on the place of supply. .

.Centralized Tax Record Repository for Audit and Reporting ‡ Tax transactions and all the noteworthy tax information for each transaction is recorded in a centralized Tax Record Repository. ‡ In new Release historical and current tax records are available in the new Tax Record Repository for reporting purposes.

making tax compliance both varied and complex.Tax Reporting ‡ Tax authorities around the world have promulgated a substantial variety of requirements pertaining to the communication of tax information. ‡ Tax Reporting is flexible enough to provide data in a user-friendly format that allows the standard and identified country specific requirements to be met. .

Tax rules that were used . Drill down into an audit trail of information for each tax line. ‡ The Tax Simulator enables the user to. identifying the III. and view the results of tax calculation. This is a valuable tool for tax managers who can use this interface to ensure that the tax configuration. provide the expected results.Tax Simulator ‡ A user interface is provided that allows users to enter transactions. including any rules that have been setup. such as a Purchase or Sales Invoice. View tax lines for µsimulated¶ transactions II. I.