Presented by: Rapidflow Apps Inc. Major OPM Enhancements in R12 -3- 11i Organization Hierarchy R12 Organization Hierarchy OPM Discrete Company SOB Operating Unit Inventory Organization Organization / Plant Warehouse LE Sub-Inventory Stock Locator Location Ledger Operating Unit Legal Entity Default LE Context Inventory Organization Sub-Inventory Stock Locator 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. Common Inventory for Discrete and Process Inventory Convergence Common Inventory 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.5.10 11i 12i 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 Product Development Changes 11i R12 Allocation of ingredients (pending transactions) Reservation (multiple levels); Manual or rule based reservations No support for movement of inventory material within the production Support for Move Orders Site-level profile options Organization-specific system parameters Consumption and Replenishment Warehouse setup in Plant-Warehouse relationship Plant-Warehouse relations discontinued 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 Execution 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module that replaces the OPM Inventory in R12 (Inventory Convergence) OPM Manufacturing Accounting Controller Module is Obsolete Oracle Process Manufacturing Sub-ledger Accounting replaces MAC Only the transactions in the process organizations will be processed by the OPM Sub Ledger SLA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 11i Terminology R12 Terminology Cost Method Cost Types Burdens Overheads PM Batch Detail Production Batches PCO Account COGS Account Few examples of Terminology changes in R12 OPM Costing Process Costing Changes Major Finance Enhancements in R12 Finance (R12 Features) -6 Major New Features Ledger and Ledger Sets US GAAP US COA US Calendar EUR Ledger B French Rules French COA French Calendar EUR Ledger A Subledger Accounting Subledger Accounting Single Subledger Single Subledger transaction can create multiple accounting representations and in multiple currencies Dr Cr Payables Invoice Payables Invoice A set of accounting information for a legal or business entity 11i & Prior = Sets of Books= 3 Cs: Currency, Calendar, Chart R12 = Ledgers =4 Cs: Currency, Calendar, Chart, Convention Benefits : Benefits : Benefits : Benefits : Makes it easy consolidation for Multi-National Companies Decision-driving business information always available Simpler processing and General Ledger management Data and definitions that can be shared and secured benefits 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 Create Financial Statements that Include Data for Multiple Ledgers Finance (R12 Features) -6 Major Initiatives Subledger Accounting (SLA Replaces MAC) Projects Projects Receivables Receivables Payable s Payable s 3 rd Party Systems 3 rd Party Systems Inventor y Inventor y 3 rd Party Systems 3 rd Party Systems SLA = Centralized Accounting Model, Rules, Engine and Repository SLA = Centralized Accounting Model, Rules, Engine and Repository Dr Cr General Ledger General Ledger Work in Process Work in Process Purchasing Purchasing Rule-based accounting engine, toolset & repository supporting Oracle E-Business Multiple accounting representations for a single business Transaction- resolving conflicts between corporate and local fiscal accounting requirements Retains most granular level details in SLA model, with different summary options in GL -full auditability and reconciliation Manufacturing Accounting Controller(MAC) removed check customizations Responsibility Responsibility Responsibility South Africa South Africa South Africa South Africa Legal Entity US US US US Legal Entity India India India India Legal Entity India Operating Unit South Africa Operating Unit South Africa Operating Unit MOAC : Multi-Org Access Control Perform multiple tasks across operating units without changing responsibilities: Order Management Dunning, Collections, Billing Requisition, Demand & Purchase Orders Receiving & Drop Ship Invoice Receipt, Disbursement Customer Data Management Accounting Setup Finance (R12 Features) -6 Major Initiatives Tax Transaction s Tax Setup/Rules Internet Expenses Receivables Order Management General Ledger Purchasing Internet Procurement Inter-Company Invoicing Inter-Company Invoicing Payables Tax Engine (Including India Localizations) Automation- Tax setup and rules content for certain countries Constant Changes in Tax Laws Regulations Date effectively and tax rule flow Local Compliance - Tax registrations and tax reporting codes Bank Model Bank account is now associated with LE entity rather than Operating Unit Single bank account serves multiple Operating Units Enhanced Reconciliation Supplier & Customer Banks in TCA -Flexibility Assets Assets Projects Projects Receivables Receivables Payables Payables Purchasing Purchasing Projects Projects Receivables Receivables Payables Payables Inventory Work in Process Work in Process LE LE LE LE OU A OU A OU A OU A OU B OU B OU B OU B OU C OU C OU C OU C Intercompany Secured Central Intercompany Accounts Configurable Approval Rules and transaction control Generate Subledger invoices Major Order Management and Shipping Enhancements in R12 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 Planners 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 New Features in R12 Order Management and Shipping Order Management (OM) Impact of Inv. Convergence OPM Inventory Order Management Oracle Inventory Order Management 11i R12 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 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 APIs 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 OPM APIs are enhanced to support inventory convergence and new organization structure. Examples of such APIs: 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 Impacts on OPM Tables and APIs 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 IC_WHSE_MST MTL_PARAMETERS For only the warehouses converted to the I/O SY_ORGN_MST MTL_PARAMETERS For only the OPM Organizations converted to the I/O IC_ITEM_CNV MTL_UOM_CONVERSIONS The IC_ITEM_CNV is obsolete but the data will remain in the inventory tables * This is only a potential direction and not the comprehensive list of the tables and APIs. Further analysis needs to be worked out, which will be specific to the implementation Technical Considerations 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 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 weve highlighted in the earlier slides. You can analyze the new features and implement them at your own pace at any time after your upgrade 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 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 Step 2 DB/OS/H/W upgrade OPM 11i to R12 applications upgrade and Implementation Step 4 Step 3 R12 Enhanced features Step 1 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. 29 Q&A If you have any feedback, please write to us at feedback@rapidflowapps.com For services, please contact us at info@rapidflowapps.com 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 30 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.