R12 Upgrade Study

March 07, 2011

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.
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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
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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.