Transcript Oracle R12 Financials: What's New?

E-Business Suite
What’s New in Release 12
Connie Barbon, Oracle Senior Sales Consultant
Agenda
What’s 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
What’s New in Release 12
What’s New in R12 Financials
6 Major Initiatives
1. Ledger and
Ledger Sets
2. Subledger
Accounting
3. MOAC
4. Intercompany
General
Ledger Sets
Ledger
& Ledger
Dr
Cr
Subledger Accounting (SLA)
Tax
Engine
Inter
Company
Bank
Model
5. Tax Engine
6. Bank Model
Multi-Org
Access
Control
Inventory
Work in Process
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 C’s: Currency,
Calendar, Chart
Seeded Conventions:
•Standard Accrual
•Standard Cash
•Accrual w/ Encumbrance
•Cash w/ Encumbrance
•US Federal Accounting
•China Standard Accrual
R12 = Ledgers
4 C’s:
Currency, Calendar,
Chart, Convention
Multiple Accounting Representations
Parallel Financial Reporting with Ledgers
Ledger A
Ledger B
French Rules
French COA
French Calendar
US GAAP
US COA
US Calendar
EUR
EUR
Dr
Cr
Subledger
Accounting
Payables Invoice
Single subledger
transaction
can create
multiple
accounting
representations
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
Ledger B
French Rules
French COA
French Calendar
US GAAP
US COA
US Calendar
EUR
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 and secured
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
3rd Party
Systems
Dr
Cr
SLA = Centralized Accounting Model,
Rules, Engine and Repository
• 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
Inventory
Receivables
Projects
3rd Party
Systems
Work in Process
Purchasing
Payables
• 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 (Don’t 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 each
EUR Subledger App
101.100.22100.0000.000.000.000
6,000
EURetc):
(AP, AR,
Summarize by GL Date,
Period,
or
Invoice No: 131299
GL Date: 01/27/07 by
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
Invoice No: 116555
GL Date: 01/27/07
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
SingleResponsibility
Responsibility
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
Excel
(Web ADI)
Online
Reconciliation
Reporting
 Fully Configurable Approval Rules
 Flexible Security Model
 Centrally defined Intercompany
Accounts
Dr
General
Ledger
XML
Publisher
Reports
Cr
Subledger
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
Internet
Expenses
General
Ledger
Purchasing
Internet
Procurement
•
Tax
Transactions
Tax
Setup/Rules
Receivables
Order
Management
•
Payables
Inter-Company
Invoicing
•
•
•
transactions for global
business insight
Centralized rules applied
to transactions to manage
globally and reduce risk
Automation of tax
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
Work in
Process
Receivables
Purchasing
Payables
Projects
• 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
Sub Ledger
Accounting
Invoices
Payments
Banks
Define Owner of Bank Account
Where is Account
used?
Specify Legal Entity
Owner
Select Multiple LE’s,
OU’s, 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
• 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
“Oracle’s 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
• Replacement for disabled accounts
• Data security across legal entities, ledgers or balancing
segment values
• Control Accounts
FLEXIBILITY
• Accounting and reporting sequencing
• Journal line reconciliation
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
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
• Self service entry extended to receipt matched,
complex Work Purchase Orders, and non-PO invoices
COST SAVINGS
• Streamlined supplier setup and maintenance as part of
Trading Community Architecture (TCA)
• Access to TCA features
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
• 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
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
PERFORMANCE
• Group Assets to include “Units of Production” method
• Energy straight-line depreciation method
• Asset impairment of a producing asset
INDUSTRY SUPPORT
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
• Enhanced cost center and projects approvals
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