E-Business Suite

Whats New in Release 12

Connie Barbon, Oracle Senior Sales Consultant

Agenda
Whats 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
Customer Support
Collections & Payments
Loan Management

Financial Consolidation
Online Candidate Registration
Absence Management
Salary Administration

Self-Service Purchasing
Sourcing
Supplier Collaboration
Business Intelligence

New User Experience

New Background
Pattern

New
Buttons
New
Colors

New
Fonts

New
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
Whats New in Release 12

Whats New in R12 Financials

6 Major Initiatives
1. Ledger and
Ledger Sets
2. Subledger
Accounting
3. MOAC
4. Intercompany

General
Ledger Ledger
& Ledger
Sets
Dr

Cr

Subledger Accounting (SLA)

Tax
Engine

Inter
Company

Bank
Mod
el

5. Tax Engine
6. Bank Model

MultiOrg
Access
Control

Work in
Process

Inventor
y

Receivables

Purchasing

Payables

Projects

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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

3 Cs: Currency,
Seeded Conventions:
Calendar, Chart
Standard Accrual
Standard Cash
Accrual w/
Encumbrance
Cash w/
Encumbrance
US Federal
Accounting
China Standard
Accrual

R12 = Ledgers
4 Cs:
Currency, Calendar,
Chart, Convention

Multiple Accounting Representations

Parallel Financial Reporting with Ledgers
Ledger B

Ledger A
French Rules
French COA
French
Calendar

US GAAP
US COA
US
Calendar

EUR

EUR

Dr

Cr

Subledge
r
Accounti
ng

Payables Invoice

Single
subledger
transaction
can create
multiple
accounting
representatio
ns
and in
multiple
currencies

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:

Chart of
Accounts
Calendar

Ledger
Set

Ledger C

Ledger A
French Rules
French COA
French
Calendar

EUR

Ledger B
US GAAP
US COA
US
Calendar

EUR

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

US GAAP
US COA
US Calendar

USD
Ledger D
US GAAP
US COA
US
Calendar

AUD

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
user-defined accounting rules

General
GeneralLedger
Ledger

Dr

Cr

3rd
Party
System
s

3rd
Party
System
s
SLA = Centralized Accounting
Model,
Rules, Engine and Repository

Invento
ry

Work in
Process

Receivable
s

Purchasin
g

Project
s

Payable
s

Single source of truth for all

subsystem accounting
activity with a common data
model and repository
Accounting, reconciliation
and reporting facilitated by
centralized data model
Streamline closing process
with common posting engine
Auditable and transparent
entries accessible with full
drilldown

Introduction to Subledger Accounting

DUAL POSTING SIMULTANEOUSLY

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

Invoice #100
ABC Networks

Invoice Internal Identifier: 1001

Invoice Internal Identifier: 1001

Invoice# 100
Supplier: ABC Networks

2 Monitors Marketing $1000

DR

5 Printers Marketing $ 500

CR
Invoice Line 1

Freight

$ 100

1 Expense 01-EXP-200

$1500

Invoice Line 2

Tax

$ 110

2 Freight 01-FR-200

$100

Invoice Line 3

Total

$1710

3 Tax

$110

Invoice Line 4

01-TX-200

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 (Dont 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
Payables
Receivables
Projects
Assets
Costing
OPM
Public
Sector/Federal

Payroll
Property Manager
Loans
Lease Management
(Post R12)
Cash Management
Globalizations
Intercompany

Subledger Journal Entry more info

Subledger Entry vs. GL Journal Entries

Many to One
SLA
JE #1

SLA
JE #2

SLA
JE #3

GL
JE #1

Controlled
by GL JE
3rd Party: Fender
Summarization setting for
101.100.63580.0000.720.000.000
6,000 EUR
each Subledger App
101.100.22100.0000.000.000.000
6,000
EUR
(AP,
AR, etc):
Summarize by GL Date,
by
Period,
or
Invoice No: 131299
GL Date: 01/27/07
3rdGL
Party:
Gibson
No Summarization
101.100.63580.0000.720.000.000
3,000 EUR
101.100.22100.0000.000.000.000
3,000 EUR
Invoice No: 136274

GL Date: 01/27/07

Invoice No: 116555

GL Date: 01/27/07

101.100.63580.0000.720.000.000
101.100.22100.0000.000.000.000
Batch: AP Invoices 27-Jan-07

3rd Party: Kramer

2,000 EUR
2,000 EUR

GL Period: Jan-07

101.100.63580.0000.720.000.000
101.100.22100.0000.000.000.000

11,000 EUR
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

Legal Entity

Legal Entity

Legal Entity

Belgium

Holland

Denmark

Operating
Unit

Operating
Unit

Operating
Unit

Responsibility
Responsibility
Responsibility
Single
Responsibility

Functional Tasks
Order Management
Dunning, Collections,
Billing
Requisition, Demand &
Purchase Orders
Receiving & Drop Ship
Invoice Receipt,
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

Web UI

Subledger
Invoices &
Documents

Open
Interfaces /
API
Generate subledger invoices
Control transaction entry with
Intercompany Calendar
Fully Configurable Approval Rules

Excel
(Web ADI)

Online
Reconciliation
Reporting

Flexible Security Model

Centrally defined Intercompany
Accounts

Dr

General
Ledger

XML
Publisher
Reports

Cr

Subledger
Accounting

Receivable
s

Payable
s

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
Internet
Expenses

General
Ledger

transactions for global

business insight

Purchasing
Internet
Procurement

Tax
Transactions

Order
Management

to transactions to manage
globally and reduce risk

Automation of tax

Tax
Setup/Rules

Receivables

Centralized rules applied

Payables

Inter-Company
Invoicing

processes on transactions
to improve operational
efficiency

Improved Reporting
Effective Date Setup
Extensible architecture
that supports additions,
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
Tax rules in code
Global descriptive flexfields for

country-specific tax attributes

Granular setup at OU level

facts about each transaction

Tax rules you can see

Tax attributes collected in fields on

key entities
Configure tax rules once per regime

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
rather than Operating Unit

LE
OU A

OU B

OU C

Single bank account

serves multiple Operating
Units
For Internal Banks and
Customer & Supplier
Banks

Inventory

Receivable
Receivabl
es
s

Work in Purchasin
Process
g

Payables
Payables

Project
Projects
s

Enhanced Reconciliation

Assets

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
New Bank Module

OU A

New Bank & Credit Card

Features
OU B

Single
Payment
Instruction

OU C

Bank

Payments

Sub Ledger
Accounting

Invoices

Banks
Define Owner of Bank Account

Where is Account
used?

Specify Legal Entity

Owner

Select Multiple LEs,

OUs, 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

<Insert Picture Here>

Not Really R12

But still cool

Simplified Self-Service Reporting

BI (XML) Publisher
Reporting Evolution
Replaces most standard reports
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

Benefits

Put reporting in the hands of

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

Oracles 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
Automatic reporting currency conversion

EFFICIENCY
EFFICIENCY

Replacement for disabled accounts

Data security across legal entities, ledgers or balancing

segment values
Control Accounts

FLEXIBILITY
FLEXIBILITY

Accounting and reporting sequencing

Journal line reconciliation

AUDITABILITY
AUDITABILITY

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
Real-time status of purchasing contract T&Cs and

PRODUCTIVITY
PRODUCTIVITY

invoicing activity in Oracle Payables and Purchasing

Self-service opportunities via iSupplier Portal to a

broader set of their suppliers

Self service entry extended to receipt matched, complex
Work Purchase Orders, and non-PO invoices

COST
COST SAVINGS
SAVINGS

Streamlined supplier setup and maintenance as part of

Trading Community Architecture (TCA)

Access to TCA features

INTEGRATION
INTEGRATION

New in Credit-to-Cash
Accelerate cash cycle and manage revenue with fiscal discipline

Daily revenue recognition

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

COMPLIANCE
COMPLIANCE

More efficient payment application with Oracle Payments

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

BETTER CASH FLOW

Visibility to carry-forward balances with cycle-based

billing
Payment application according to customer preferences

INDUSTRY SUPPORT

New in Cash and Treasury

Optimize Cash and Treasury Operations
Centralized and consolidated bank model
Single bank account shared by multiple organizations
Bank account transfers directly in Cash Management

EFFICIENCY

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
Real-time visibility into cash inflows and outflows
Large library of payment formats and validations

COMPLEXITY

Simplified reconciliation of bank statements to cash

transactions in multiple organizations

Support for new bank account balance types in bank
statement import
Bank account-level reconciliation options and tolerances

FLEXIBILITY
FLEXIBILITY

New in Asset Management

Maximize return on assets
Automate legacy asset conversion with enhanced

preparation of Mass Additions

Perform rollback on select assets with Automatic

Depreciation Rollback

EFFICIENCY
EFFICIENCY

PERFORMANCE
PERFORMANCE

Group Assets to include Units of Production method

Energy straight-line depreciation method
Asset impairment of a producing asset

INDUSTRY
INDUSTRY SUPPORT
SUPPORT

New in Travel & Expense

Lower the total cost of travel and expense

CONUS and OCONUS global per diem rates

Per diem and policy schedules

Expense splitting across multiple accounting segments

Enhanced cost center and projects approvals

LOWER COSTS

ACCURACY
ACCURACY

Self-service cash advance application during entry

Bar code generation
Streamlined receipts management with receipts tracking

and receipts missing capabilities

PRODUCTIVITY

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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