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 Financial Consolidation Self-Service Purchasing
Customer Support Online Candidate Registration Sourcing
Collections & Payments Absence Management Supplier Collaboration
Loan Management Salary Administration Business Intelligence
New User Experience
New Background
Pattern

New
Buttons

New
Colors

New New
Fonts 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 General
Ledger Ledger Sets
& Ledger
Ledger Sets
2. Subledger Dr Cr
Accounting Subledger Accounting (SLA)

3. MOAC
Tax Inter Bank
Engine Company
4. Intercompany Model

5. Tax Engine
6. Bank Model Multi-Org
Access
Control
Inventory Receivables Projects

Work in Process Purchasing Payables

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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 R12 = Ledgers

3 Cs: Currency, 4 Cs:
Calendar, Chart Currency, Calendar,
Seeded Conventions: Chart, Convention

Standard Accrual
Standard Cash
Accrual w/ Encumbrance
Cash w/ Encumbrance
US Federal Accounting
China Standard Accrual
Multiple Accounting Representations
Parallel Financial Reporting with Ledgers

Ledger A Ledger B
French Rules US GAAP
French COA US COA
French Calendar US Calendar
EUR EUR

Single subledger
transaction
can create multiple
Dr Cr
accounting
representations
Subledger
and in multiple
Accounting
currencies

Payables Invoice
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:
Ledger Set Chart of Accounts
Calendar

Ledger C

US GAAP
US COA
Ledger A Ledger B US Calendar
French Rules US GAAP USD
French COA US COA
French Calendar US Calendar
EUR EUR Ledger D
US GAAP
US COA
US Calendar
AUD
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 and secured 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
General
GeneralLedger
Ledger
user-defined accounting rules
3rd Party Single source of truth for all
Systems
subsystem accounting
Dr Cr SLA = Centralized Accounting Model,
activity with a common data
Rules, Engine and Repository model and repository
Accounting, reconciliation
and reporting facilitated by
centralized data model
Streamline closing process
Inventory Receivables Projects with common posting engine
3rd Party
Systems Auditable and transparent
Work in Process Purchasing Payables entries accessible with full
drilldown
 Introduction to Subledger Accounting
DUAL POSTING SIMULTANEOUSLY

Ledger: FR Statutory
GL Date: 2-Mar-2006 Invoice Internal Identifier: 1001
Invoice# 100
Invoice #100 Ledger: US Corporate Invoice Internal Identifier: 1001
Supplier: ABC Networks
GL Date: 2-Mar-2006
ABC Networks
Invoice# 100
Supplier: ABC Networks

2 Monitors Marketing $1000 DR CR

5 Printers Marketing $ 500 Invoice Line 1

1 Expense 01-EXP-200 $1500 Invoice Line 2

Freight $ 100
2 Freight 01-FR-200 $100 Invoice Line 3
Tax $ 110
3 Tax 01-TX-200 $110 Invoice Line 4
Total $1710
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 Payroll

Payables Property Manager
Receivables Loans
Projects Lease Management
Assets (Post R12)
Costing Cash Management
OPM Globalizations
Public Intercompany
Sector/Federal
Subledger Journal Entry more info
 Subledger Entry vs. GL Journal Entries
Many to One

Invoice No: 136274 GL Date: 01/27/07 Controlled by GL JE

3rd Party: Fender
SLA Summarization setting for
JE #1 101.100.63580.0000.720.000.000 6,000 each
EUR Subledger App
101.100.22100.0000.000.000.000 6,000 EURetc):
(AP, AR,
Summarize by GL Date,
Invoice No: 131299 GL Date: 01/27/07 by 3rdGL Period,
Party: or
Gibson
SLA No Summarization
JE #2 101.100.63580.0000.720.000.000 3,000 EUR
101.100.22100.0000.000.000.000 3,000 EUR

Invoice No: 116555 GL Date: 01/27/07 3rd Party: Kramer

SLA
JE #3 101.100.63580.0000.720.000.000 2,000 EUR
101.100.22100.0000.000.000.000 2,000 EUR

Batch: AP Invoices 27-Jan-07 GL Period: Jan-07

GL
JE #1 101.100.63580.0000.720.000.000 11,000 EUR
101.100.22100.0000.000.000.000 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

Functional Tasks
Legal Entity Legal Entity Legal Entity Order Management
Dunning, Collections, Billing
Requisition, Demand &
Belgium Holland Denmark Purchase Orders
Operating Unit Operating Unit Operating Unit Receiving & Drop Ship
Invoice Receipt,
ResponsibilitySingle Responsibility Responsibility 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 Subledger
Web UI
Invoices &
Documents

Open
Interfaces /
API
Generate subledger invoices Online
Control transaction entry with Reconciliation
Excel Reporting
Intercompany Calendar
(Web ADI)
Fully Configurable Approval Rules
Flexible Security Model
Centrally defined Intercompany XML
Accounts Publisher
Reports

Dr Cr

General Subledger
Ledger Accounting Receivables Payables
 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
transactions for global
Purchasing business insight
Internet
Expenses Centralized rules applied
Internet
Procurement
to transactions to manage
globally and reduce risk
General
Tax Automation of tax
Transactions
Ledger processes on transactions
Payables to improve operational
Tax
efficiency
Setup/Rules
Improved Reporting
Receivables
Inter-Company
Effective Date Setup
Invoicing Extensible architecture
Order
that supports additions,
Management
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 facts about each transaction

Tax rules in code Tax rules you can see

Global descriptive flexfields for Tax attributes collected in fields on
country-specific tax attributes key entities

Configure tax rules once per regime

Granular setup at OU level 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
LE rather than Operating Unit
Single bank account
OU A OU B OU C
serves multiple Operating
Units
For Internal Banks and
Customer & Supplier
Banks
Inventory Receivables Projects
Enhanced Reconciliation
Work in Process Payables Assets
Purchasing
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
OU A
New Bank Module
New Bank & Credit Card
Features
OU B

OU C Single
Payment Bank Payments
Instruction

Sub Ledger
Accounting
Invoices
Banks Specify Legal Entity
Define Owner of Bank Account Owner

Where is Account
used?
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
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Not Really R12

But still cool
 Simplified Self-Service Reporting
BI (XML) Publisher
Reporting Evolution Benefits

Replaces most standard reports Put reporting in the hands of

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
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 EFFICIENCY
Automatic reporting currency conversion
Replacement for disabled accounts

Data security across legal entities, ledgers or balancing

segment values FLEXIBILITY
Control Accounts

Accounting and reporting sequencing

AUDITABILITY
Journal line reconciliation
 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 PRODUCTIVITY
Real-time status of purchasing contract T&Cs and
invoicing activity in Oracle Payables and Purchasing

Self-service opportunities via iSupplier Portal to a

broader set of their suppliers COST SAVINGS
Self service entry extended to receipt matched,
complex Work Purchase Orders, and non-PO invoices

Streamlined supplier setup and maintenance as part of

Trading Community Architecture (TCA) INTEGRATION
Access to TCA features
 New in Credit-to-Cash
Accelerate cash cycle and manage revenue with fiscal discipline

Daily revenue recognition

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

More efficient payment application with Oracle Payments

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

Visibility to carry-forward balances with cycle-based

billing INDUSTRY SUPPORT
Payment application according to customer preferences
 New in Cash and Treasury
Optimize Cash and Treasury Operations

Centralized and consolidated bank model

Single bank account shared by multiple organizations
EFFICIENCY
Bank account transfers directly in Cash Management
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 COMPLEXITY
Real-time visibility into cash inflows and outflows
Large library of payment formats and validations

Simplified reconciliation of bank statements to cash

transactions in multiple organizations
Support for new bank account balance types in bank FLEXIBILITY
statement import
Bank account-level reconciliation options and tolerances
 New in Asset Management
Maximize return on assets

Automate legacy asset conversion with enhanced

preparation of Mass Additions EFFICIENCY

Perform rollback on select assets with Automatic

PERFORMANCE
Depreciation Rollback

Group Assets to include Units of Production method

Energy straight-line depreciation method INDUSTRY SUPPORT
Asset impairment of a producing asset
 New in Travel & Expense
Lower the total cost of travel and expense

CONUS and OCONUS global per diem rates LOWER COSTS

Per diem and policy schedules

Expense splitting across multiple accounting segments

ACCURACY
Enhanced cost center and projects approvals

Self-service cash advance application during entry

Bar code generation
PRODUCTIVITY
Streamlined receipts management with receipts tracking
and receipts missing capabilities
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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