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Highlights of the New Features in Oracle

E-Business Suite Financials Release 12
Terrance Wampler
Financials Strategy
The following is intended to outline our general
product direction. It is intended for information
purposes only, and may not be incorporated into any
contract. It is not a commitment to deliver any
material, code, or functionality, and should not be
relied upon in making purchasing decisions.
The development, release, and timing of any
features or functionality described for Oracle’s
products remains at the sole discretion of Oracle.
Global Architecture
Multiple
1
Ledgers
3rd Party
Systems 2
General
GeneralLedger
Ledger
Centralized Architecture
Drilldown
2.1 Accounting Policies
Centralized Accounting Model,
Rules, Engine and Repository
2.2 Bank Model

Intercompany 2.3 Tax Engine

Banking Global Tax Accounting

2.4 Intercompany

Inventory Receivables Projects 3

Role-Based Access
Work in Process Purchasing Payables to Operating Units
E-Business Suite
E-Business
R12 Highlights – And the categories are…
QUESTIONS
ANSWERS
 Advanced Collections in R12
Improved Processing

CAPABILITY BENEFITS
• Visibility
of Customer
• Shared Services Support Information across
Operating Units

• Independent from Sales

• Collection Territories
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Territories

• Improved Compliance
• Centralized Functions • Collections Workbench
from AR merged

• Collect
Real-Time with
• Payments Integration
Funds Capture
Advanced Collections in R12
Simplified Setup

Question &
Answer
Type Setup
Advanced Collections in R12
Simplified Setup - Checklist
Payables & Receivables Netting
Reduce Costs in Trading Relationships

AR Invoices
Customer #203 $500 Receipt
#460 $600 $800

Netting

AP Invoices
Supplier #699 $400
Payment
#982 $400 $800
 Netting in R12
Benefits

CAPABILITY
• Offset Payable & Receivables
BENEFITS
• Reduced Costs
• Reduced Bank Charges
• Fewer Transactions
to Process
• Cashflow Improvement

• Insured Consistency
• Trading Partner Approval

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Eliminate Accounting Errors
Alternate Accounts Replace Disabled Accounts
 Accounting Calendars
Definition Access Sets AutoAllocations
AutoPost Criteria Sets
Controller
AutoReversal Criteria Sets

Accountant Budget Formulas

Privileges Budget Organizations
Chart of Accounts Mappings
Use Modify View
Consolidation Definitions
Consolidation Sets
Revaluations
Elimination Sets
Allocations FSG Reports and components

Rate Types MassAllocations

MassBudgets
Elimination Sets
Rate Types
Recurring Journals
Revaluations
Introducing Ledger Sets
Implement Processing Efficiencies

• Open/Close Periods
• Create Journals
• Translate and Revalue Balances
• View Information
• Submit Standard Reports
• Submit Financial Statements
E-Business Suite Financials
Introducing Advanced Global Intercompany

Advanced Global Intercompany •Centralized Solution

•Integration with
Receivables & Payables
•Flexible Approval Rules
•Based on Legal Entities
•Online Reconciliation
Tools
 Advanced Global Intercompany System
Completely Integrated System

3
1 Enter Transaction
1
2 2 Send Transaction

3 Approve Transaction
(or reject)

4 Create AR Invoices
4 Create AP Invoice
3
– or –

4 4 5 Create GL Journal
5 Create GL Journal

– or – – or –
5 5
 Bank Accounts
Centralized User Interface
11i: 12:

Cash
CashMgmt
Mgmt Cash
CashMgmt
Mgmt
Payables
Payables
Payables
Payables Bank
Bank
Accounts TCA
TCA Payables
Accounts Payables

Receivables
Receivables
Banks Receivables
Receivables
Banks
Payroll
Payroll
Payroll
Payroll Bank
Bank Payroll
Accounts Bank
Bank Payroll
Accounts
Accounts
Accounts
Treasury
Treasury
Bank Treasury
Treasury
Treasury
Treasury Bank
Accounts
Accounts
 Bank Accounts
Benefits Achieved from Centralized Accounts

CAPABILITY BENEFITS

• Centralized User Interface & • Improved Control

Data Model • Improved Data Integrity

• Legal Entity Association • Improved Visibility

(No Operating Unit • Simplified Reconciliation
Redundancy)

• Increased Percentage of
• Flexible Reconciliation Automatically Reconciled
Parameters Transactions

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 Cash Management
Enhancements in EBS R12 Financials

CAPABILITY BENEFITS

• Centralized Balances & • Improved Visibility

Interest

• Interest Calculator • Verification of Bank Interest

• Bank Account Transfers • Track Bank Transfers

• XML Publisher Enabled

• Improved Reporting
• Visibility of Actual vs. Projected

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 Oracle Receivables in R12
Accelerate Cash and Manage Revenue with Fiscal Discipline

Capabilities Benefits

• Revenue Policy Compliance • Systematic Fiscal Discipline

• Automated Late Charges • Increased Cash Flow and

Streamlined Processing
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• Line Level Cash Application • Better Visibility

 Accelerate the Cash Cycle
With Improved Efficiency and Visibility

Automated, Flexible Late

Charges Improve Efficiency

Better Visibility with Line

Level Cash Application
Automate Revenue Recognition
Recognize Revenue Based on Rules and Events

Time-Based Revenue Recognition

• Ratably Over Time
• Upon Expiration of Contingencies

Event-Based Revenue Recognition

• Payment
• Customer Acceptance

Rule-Based Revenue Recognition

• Payment Term Thresholds
• Refund Policy Thresholds
• Customer Creditworthiness
Centralized Balancing Routine
Supporting Intercompany & Intracompany

In 11i:
• Balancing Journal Entries generated at posting time
by the General Ledger Posting routine

In R12, the Balancing Routine:

• Generates balancing accounting entries for subledger
journal entries at time accounting is created
• Generates balancing journal entries at posting time
for all other journals
 Balancing
Intercompany & Intracompany

02.Expense 300
03.Expense 100
01.Expense 200
Co. A Company B
02.Intracompany 100
03.Intracompany 100
BS BS BS
V 01 V 02 V 03
02.Intercompany 200
01.Intercompany 200
 Balancing
Intercompany & Intracompany

CAPABILITY BENEFITS

• Improved Control
• Centralized Account Definition • Simplified Setup

• Consistent Accounting
• Centralized Balancing Engine
• Simplified Reconciliation
• Increased Visibility

• Intercompany & Intracompany • Compliance

Support • Improved Reconciliation

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 Business Reporting Requirements
Complex & Diverse
• High Fidelity Reports
• Partner Reports
• Financial Statements
Checks
• Government forms
Invoices
• Marketing materials
• Contracts
• Checks, Labels Labels Reports
• XML
• EFT / EDI
• Multiple destinations
Destinations XML / EFT / EDI
 XML Publisher
Making Reporting Manageable

Separate data / layout / UI translation

Data Logic Report

XML Publisher output

Layout

Translation
9Flexibility
9Reduced maintenance
One Solution for all Business Documents
 Financial Reporting with XML Publisher
Nearly 400 Modifiable Formats

Product Formats Product Formats

Assets 22 IT Audit 2
Cash 3 Loans 6
Collections 15 Payables 9
Common Modules 10 Payments 120
Financials
21 Public Sector 6
Consolidation Hub
General Ledger 14 Receivables 10
Subledger
Globalizations 92 17
Accounting
Internal Controls
25 Tax 23
Manager
 Internet Expenses
Productivity Enhancements

CAPABILITY BENEFITS

• Quicker Approvals through

• Improved Approvals
Parallelization
• Increased control over costs

• Barcoding • Improved Processing

Efficiencies

• Improved Auditing
• Usability Enhancements
Functionality
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Copyright © 2006, Oracle. All rights reserved.

Internet Expenses
Barcode Enabled

Copyright © 2006, Oracle. All rights reserved.

Internet Expenses
Usability Enhancements

Activity Based Tabs Receipt Verification

Copyright © 2006, Oracle. All rights reserved.

 New to Payables

CAPABILITY BENEFITS

• Invoice Lines
• Improved asset tracking • Improved integration
• Line level approvals • Enhanced Approvals
• Matching to a PO shipment or
receipt

• Suppliers in TCA • One setup per supplier

(No Operating Unit Redundancy) • Features of TCA

• Contract Financing and

Retainage for Complex • Seamless integration with
Services purchase contract T’s and C’s
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Copyright © 2006, Oracle. All rights reserved.

Payables
Invoice Lines and Enhanced Asset Tracking
View or Enter:
Item Description
Manufacturer
Select Model
OU • Item
Serial Description
Number
Warranty Number
• Manufacturer
• Serial Number

Copyright © 2006, Oracle. All rights reserved.

Payables
Suppliers in TCA

Global Tax Payments

Payables Cash
Purchasing Geographies Party Management
Suppliers Information Banks and
Branches

Trading
Community
Architecture

Oracle Fusion Middleware

ERP CRM 3rd Party

Copyright © 2006, Oracle. All rights reserved.

Payables Services Procurement
Progress Payment Schedule
Define Progress
Payment
Schedule

Specify Pay Item Number, Describe Work Component &

Type: Payment
• Rate
• Lumpsum
• Milestone

Copyright © 2006, Oracle. All rights reserved.

Payables Services Procurement
Progress Payment Invoices

9 As progress is made on the work,

the supplier continues to submit
work confirmations, work is
approved, invoices are generated,
and retainage is withheld

Approved Billed Retained Advance

Advance 50,000
Resurface Lot 200,000 200,000 <20,000> <50,000>
Road Work 500,000 500,000 <50,000>
Landscape 250,000 250,000 <25,000>
Final Painting 50,000 50,000 < 5,000>

1,000,000 1,000,000 <100,000> 0

Copyright © 2006, Oracle. All rights reserved.

 New Product: Oracle Payments

CAPABILITY BENEFITS

• Central Engine for Payment

Disbursement and Funds • Global payment solution
Capture
• Format Library
• Reduced complexity
• Out-of-the-box formatting
• Fewer files to transmit
• XML Publisher Integration • Simplified implementations
• Make Edits with MS Word • Lower cost of ownership
• Secure Repository for Credit
Cards and Customer/Supplier • Improved data security
Bank Accounts
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Copyright © 2006, Oracle. All rights reserved.

Oracle Payments
Single Point of Integration with Financial Institutions

Financial Institutions
Oracle Payables

Oracle Payments
Other applications

Oracle Receivables Print Payments

Copyright © 2006, Oracle. All rights reserved.

Oracle Payments
Funds Disbursement

Payment
File

Oracle Payables
Payment Build
User Pool of Built
Payments

Payment
File

Select Invoices

Less effort, fewer files to transmit or print

Copyright © 2006, Oracle. All rights reserved.

Oracle Payments
Funds Capture

Request Authorization Settlement Acknowledgement

Replaces and expands iPayment functionality

Copyright © 2006, Oracle. All rights reserved.

 Oracle Payments
Formatting with XML Publisher

Data Sources XML Publisher Output Formats Destination

Publishing • Email
Engine PDF HTML EDI
XML RTF XML • Printer
Disbursements • Fax
Credit Card
• FTP
Payments • AS/2
Direct Debits Templates

Remittances Remittance
Checks
Advice

Fund EFT Payments

Business Transfers
User Payment
Credit Card
Reports
Auths

Copyright © 2006, Oracle. All rights reserved.

 User Experience Highlights

Six worldwide Usability Studies:

16 customers 57 participants

Recommendations:
•Re-design and streamlining
•Reduction in the number of steps
•Overall look & feel improvements

Results: Significant Improvements

• Collections Setup
• Payments
• Loans
• Applications Setup Manager (ASM)
• Financial Consolidation Hub (FCH)

Copyright © 2006, Oracle. All rights reserved.

Disbursement Dashboard

Pending Actions
Common Actions

BI/Analytic
Graphics

Copyright © 2006, Oracle. All rights reserved.

General Ledger Setup in 11i

Copyright © 2006, Oracle. All rights reserved.

Accounting Setup Manager
Single Page for Accounting Setup
•Legal Entities
•Ledgers
•Currencies
•Balancing
Segments
•Subledger
Accounting
•Operating
Units
•Balancing
Options

Copyright © 2006, Oracle. All rights reserved.