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eBusiness Suite Release 12 –
What could it do for you?
Barbara Beattie – FMS Solution Consultant
March 22nd, 2007
Agenda
Introduction and Overview
Why Release 12?
Key features
What's in it for you?
Q&A
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Release 12 : The Global Business Release
- a key definition
Global (adjective): defined in the Shorter Oxford English
Dictionary
•
Relating to the whole world, worldwide
•
Relating to or embracing the whole of something, or
of a group of things
•
(Computing) Operating or applying through the whole
of a file or program
Finance Performance
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Suffering from Lack of Standardisation
HOW FINANCE SPENDS ITS TIME
• Nearly 50% on routine work
AREAS THAT FINANCE NEEDS TO IMPROVE
26%
47%
27%
Transactional Activities
Control Activities
Decision Support, Performance Mgmt
The Agile CFO, IBM Business Consulting
Services, 2005
Effectively leveraging technology
91%
Helping the company reduce risk
85%
Providing management information for
decision making
76%
Overall cost effectiveness
74%
Dealing with complexity
72%
Dealing with regulations
71%
Corporate Finance Departments Leaving
Money on the Table , PWC Management
Barometer, 2006
Globalisation Adds Complexity
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EXTENT TO WHICH VALUE CREATING ACTIVITIES
INCREASE COMPLEXITY
Expansion into New Territories
M&A
26
New Product Launches
Strategic Alliances
36
Offshoring
34
32
33
23
35
33
77% of global CEOs say
the level of complexity in
their organisations is
higher than 3 years ago
23
42
29
16
36
16
33
Some Extent
Business Process Localisation
29
39
11
Large Extent
Outsourcing
0
20
Percent
Source: PWC, 9th Annual Global CEO Survey
10
26
39
40
60
Very Large Extent
80
100
Costs
Complexity Drives Up Costs
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• Fragmented systems
• Varied policies, processes, controls, and
systems
• Manual processes
• Consolidated systems
• Standard policies, processes, controls and
systems
• Automated and best practice processes
Complexity
Back to the Basics
Consolidate, Centralise, and Standardise
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Major Focus
STANDARDISING operating practices and
controls
69%
50%
STANDARDISING policies and business
rules
66%
STANDARDISING and integrating finance
systems
59%
Adopting BEST PRACTICES
58%
Optimising the finance organisation and
its reporting structure
52%
Senior
executives say
simplification
is driving the
Finance
agenda
Reducing reliance on spreadsheets
33%
Source: PWC Management Barometer
Agenda
Introduction and Overview
Why Release 12?
Key features
What's in it for you?
Q&A
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Release 12
The Global Business Release
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WORK GLOBALLY
THINK GLOBALLY
MANAGE GLOBALLY
To Be More Competitive
To Make the Right Decisions
To Lower Cost & Increase
Performance
Work better across applications,
divisions, and regions
Achieve global view of customer,
supplier, partner & operations
• Flexible, centralised, global
accounting structure
• Truly integrated
• Comprehensive
governance, risk and
compliance platform
• Integration with core
performance management industry applications
• 300+ enhancements to best • Real-time profitability
practice business
processes
Implement, manage, and scale
global applications easier
analysis
• Unified financial and
operational analytic
applications
• Self-service report
formats and publication
• Superior ownership
experience
Agenda
Introduction and Overview
Why Release 12?
Key features
What's in it for you?
Q&A
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Legal Organisation
A Group can have many Legal Entities
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We care because Legal Entities:
Public
Company
• pay the taxes - need tax registrations
Subsidiary
Public
Company
Company
(regional parent)
Subsidiary
Company
(business parent)
• trade and generate intercompany
transactions
• own the money and bank accounts
Subsidiary
Company
Subsidiary
Company
Subsidiary
Company
Subsidiary
Company
Subsidiary
Company
• file the accounts, and own the accounting
• comply with statutory and other
regulatory requirements the “legal” in LE
… and this leaves the Operating Units
to get on with business.
Global Financial Architecture
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6 Major Initiatives
1.
Ledger and Ledger Sets
2.
Subledger Accounting
(SLA)
3.
Multi-Org Access Control
(MOAC)
4.
Bank Model
5.
Tax Engine
(eTax)
6.
Intercompany
(AGIS)
General
Ledger Sets
Ledger
& Ledger
Dr
Cr
Subledger Accounting (SLA)
Tax
Engine
Multi-Org
Access
Control
Inter
Company
Inventory
Work in Process
Bank
Model
Receivables
Purchasing
Payables
Projects
Ledger Sets
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Global Information At A Glance
Share:
Chart of Accounts
Calendar
Ledger Set
Ledger C
Ledger A
Ledger B
French Rules
Plan Comptable
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
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Ledgers and Adjustments
Management
Ledger Set
US Ledger Set
Legal Ledger
US1
Legal Ledger
US2
Legal Ledger
US3
Adjustment
Ledger US
Corporate
Ledger Set
For adjs
and
eliminations
UK Ledger Set
Legal Ledger
UK1
Legal Ledger
UK2
Adjustment
Ledger UK
Adj Ledger
Corporate
• Use an adjusting ledger to automate GAAP adjustments
• Use a Global Consolidation System Ledger to eliminate
• Use FCH for Consolidation
• Use a GCS Ledger to map to the common COA
Subledger Accounting - SLA
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Centralised Rules, Common Repository: Global Control
Ledger
What it is
French Rules
Plan Comptable
French Calendar
EUR
Dr
Cr
Subledger
Accounting
• Accounting Rules
• SarBox & 8th Dir.
• User Editable
• Subledger Daybooks
•
•
•
•
•
Payables Invoice
(Journals)
Subledger Balancing
Reports, inquiries, open
items, et cetera
Multiple
Representations
Common Posting to GL
Ledgers
Real time or Periodic
Some Benefits
• Faster, Easier
•
•
•
•
•
Reconciliation
Corporate Rules =
Accounting
Standardisation
Local Rules =
Improved Local
Compliance
Automate “Apples to
Apples” Adjustments
Improved Auditability
Improved Internal
Control
MOAC: Multi-Org Access Control
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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
ResponsibilityResponsibility
Functional Tasks
 Accounting
 Billing, Dunning
& Collections
 Procurement
 Order Management
 Payments
 Data Management
Multiple Organisation Access Control
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Summary of Changes
• Security Profiles for data security
• MO: Security Profile
• List of operating units for a responsibility
• Defined in HR
- OU field on UI
• all transactions
• setup data specific to OU, like transaction type
• Enhanced Multi-Org Reporting and Processing
• Ledger/Ledger Set parameter on accounting reports and processes
• OU parameter on other standard reports and processes
• For example: submit the Payables Open Interface Import w/OU
param null to import all records across all OUs
Multiple Accounting Representations
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Alternative Ledger vs. Adjusting Segment
Ledger A
Ledger B
French Rules
Plan Comptable
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
or
Chose to use an
alternative Ledger or just an Adjustment
Ledger or segment
Currency in Twelve
•
•
•
•
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Transaction Currencies
Accounting Currency in Primary Ledger
Reporting Currency in Primary Ledger
More Accounting Currencies in Secondary Ledgers
• For every transaction OR
• For SLA Posting level / GL activity level
• Balance level Translation or Remeasurement in
Ledgers – within Ledger sets, run at one click
• Balance & Activity level Translation or
Remeasurement in Financial Consolidation Hub
• Enhanced Revaluation
 [Functional Currency term dropped: conflicts with IAS 21 / FAS 52]
Data Management
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Leveraging centralised data model
Payables
Purchasing
Suppliers
Payments
Global Tax
Authorities,
Geographies, etc.
Party
Information
Cash
Management
Banks and
Branches
Trading
Community
Architecture
Oracle Fusion Middleware
ERP
CRM
3rd Party
Centralised Banking and Payments
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Funds Disbursements and Capture
• 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
• Any and all Operating Units
associated with a ledger
can be permitted to use the
bank account
Inventory
Receivables
Work in Process Purchasing
Payables
E-Business Suite
Projects
Assets
Plus
 Centralised Credit Card Model
 Credit Card Encryption
 Supplier & Customer Banks in TCA
Example : Shared Service Disbursement
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OU A
OU B
Centralised
Accounting
OU C
Multiple
Payment
Instructions
1.
2.
3.
Invoices
4.
5.
Banks
Payments
Setup accounting policies
Select invoices from multiple OUs
Format for bank and disbursement
countries
Send single instruction to bank
Generate separate payments for each OU
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eBusiness Tax - Centralised Global Tax
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Less Complex Global Tax Compliance
Benefits
Solution
• Automated processing based on predefined tax rules
Operational Efficiency
• Simplified tax configuration (shared across legal entities and Oracle apps)
• Standard services to all eBusiness applications
• Integration with external tax vendors (Taxware and Vertex in the U.S.)
Global Management,
Local Compliance
• Single data model for rules and transactions across geographies and
applications
• Centralised tax repository provides global visibility
• Self-Service for Tax Managers
• Tax reporting ledger provides single source of the truth and complete
auditability
Information Visibility
• Configurable tax reporting templates
• Tax simulator for setup, rules, and transactions
4Ps Configuration
Party
• Legal Party Fiscal
Classification
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Process
• Registration
• Party Fiscal
Classification
• Transaction Input
Factor *
Product
• Product Inventory Linked
• Product - NonInventory Linked
• Transaction Input
Factor (Intended
Use, Product
Override)*
• Document
• Transaction Fiscal
Classification
• Transaction Generic
Classification
• Accounting
Event
• Transaction Input
Factor *
Place
• Geography
• User Defined
Geography
• Juirisdiction
Rule Engine - Types
Inventory
Receivables
Purchasing
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Projects
Payables
4P’s
Tax
Values
Determining
Factors
Tax
Regimes
Place of
Supply /
Taxation
Applicability
&
Registration
Status
&
Rates
Taxable
Basis
Tax
Recovery
Calculation
Rate
Centralised Intercompany
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Faster Period-End Close
Advanced Global
Intercompany
System
Subledger
Invoices &
Documents
Manual
Entry
Open
Interfaces /
API
 Generate subledger invoices
Excel
(Web ADI)
 Fully Configurable Approval
Rules
 Control transaction entry with
Intercompany Calendar
Online
Reconciliation
Reporting
 Centrally defined Intercompany
Accounts
XML
Publisher
Reports
 Transaction-level balancing
Dr
General
Ledger
Cr
Subledger
Accounting
Receivables
Payables
How should we account for it ?
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• All Intercompany Trading must net to zero when accounting is
consolidated.
• Or you have artificially increased the numbers of the Group
• All transactions must hit each subsidiary ledger in the same
Period
• Or they won’t net to zero
• The same currency conversion rates should be used on each
side
• Or when converted to the corporate currency they won’t not
net to zero
The New Standard Reports Paradigm
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XML Publisher and 835 Templates
What’s Happening
Why you’ll love it
• Replaces many 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
• Example
• Put reporting in the hands
• 98 removed reports in JE/JG
• 19 Extracts, 86 Templates
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
Bursting Engine
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Bursting Engine
• Burst individual documents from a batch
• Dynamic generation based on data
• Deliver in desired layout, output format and delivery channel
• Integrated into concurrent processing
Business Drivers
• Remove dependence on 3rd parties
• Reduce reporting and delivery costs
EDI
HTML
PDF
XML Publisher
PDF
XML
Batch
Data
Control
File
Templates
Consolidated Document Publishing
• Generate consolidated documents
• Briefing Books, Shipping Documents, etc
• XML Publisher or 3rd party PDFs
• Page numbering
• Bookmarks
• Start/ End Pages
• Overlays
Business Drivers
• Remove dependency on 3rd parties
• Faster document generation
• Leverage existing EBS documents
XML Publisher
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Template Enhancements
Template Builder
• Cross Tab Wizard
• Multiple Levels
• Totals
• Enhanced Chart Dialog
•
•
•
•
Multiple Line Charts
3D Charts with Gradients
Color Schemas
Real time Preview
• Table Wizard
• Translation Support
• Template Validation
Business Drivers
• Faster report development
• Reduced training costs
• Business user empowerment
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Overview of R12 Technology Highlights
List
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Simplify & Accelerate Systems Connectivity with…
Next Generation Business Process Mgmt
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Integrate Oracle, 3rd party, and legacy applications to extend process automation
• Quickly integrate
Oracle
EBS
PeopleSoft
Financials
Retek
applications using an
intuitive, graphical UI
• Manage system
BPEL Process Manager
Business
Process
Siebel
CRM
Step
1
Step
2
• Standard Interfaces
• Cross-application maps
Step
3
Mainframe HR
Application
Step
4
Step
5
New Web
Application
performance via Web with
a user-friendly console
• Reduce connectivity
headaches with
pre-packaged, standard
interfaces for applications
and legacy systems
• Built on widely adopted
industry standard
language (BPEL)
Benefits of These Changes
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• Latest technologies certified with EBS Release 12
• Applications get benefit of latest platform features
• Customers can use same current versions in EBS and for
custom development
• Support for Latest Platforms
• Itanium 64 bit
• Customers gain experience with Fusion Middleware
environment given 10gAS that will be basis for Fusion
Applications
• Early Customer Feedback
Agenda
Introduction and Overview
Why Release 12?
Key features
What's in it for you?
Q&A
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So why upgrade to Release 12?
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•First major Oracle Applications Release since 11i
•eBusiness Suite - Architectural basis for Fusion
 Integrated business intelligence
 TCA with Customers, Suppliers, Students, Legal Entities, Banks
 XML Publisher, BPEL
 Centralised Accounting and Tax engines
 First release to use Fusion Middleware
•Improved User Interface
•Over 300 new financials features & integrations
• Easier reconciliation, XML reporting, complex payments,
streamlined asset flow, Advanced Collections
• Retek integration, clinical data repository
Superior Ownership Experience
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Better Upgrades
Continuity and Choice
 Uptake new features
at your pace
 Run your business the  Minimise manual work
same way
Testing – More customer database upgrades; more
dependency analysis and management
Upgrade Process – Fewer pre- and post-upgrade
steps
Documentation – More comprehensive functional
upgrade impact; improved sising guidelines; downtime
reduction techniques
“Many clients are evaluating whether to upgrade from Oracle E-Business Suite 11i to
Release 12 or wait for the larger Fusion release. There are significant application and
architecture changes in Release 12. Upgrading now will help build the foundation to
prepare for Fusion—maximising business value while mitigating risk.”
-- Sean Malinski, Accenture Partner, Global Business
Solutions - Oracle Practice
Over 300 New Financial Features
Just a sample…
Simplify and Standardize
• Manage the Margin
• Collect Faster
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New Features
• Live AR-Inventory. Revenue-COGS Match
• Deferred COGS and Revenue Automation
• Advanced collection, Dunning, Loans
• Invoice Lines
• Standardize Payables
• Suppliers in TCA: one setup per partner
• Supplier, users invoice self service
• Pay more easily
• Simplify Employee Expenses
• Straight through processing (STP) at banks
• Per diems, approval enhancements
• Expense Bar Codes
• Rationalize Procurement
• Self Service receipt matched invoices
• Real time contract T&Cs in PO, AP
• Bulk Process Assets
• Asset Automatic Depreciation Rollback
New in Financial Control & Reporting
Highly automated financials processing drives efficiencies
• Centralised 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
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New in Procure-to-Pay
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Integrated Suite Optimises 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
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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
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Optimise Cash and Treasury Operations
• Centralised and consolidated bank model
• Single bank account shared by multiple organisations
• Bank account transfers directly in Cash Management
EFFICIENCY
• Funds optimisation with cash pooling and sero balancing
• Configurable and centralised 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 organisations
• Support for new bank account balance types in bank
statement import
• Bank account-level reconciliation options and tolerances
FLEXIBILITY
New in Asset Management
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Maximise 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
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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
Why Upgrade
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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 customisations in this area.”
“Centralisation of subledger accounting rules would minimise 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 centralised
will bring tremendous efficiencies to our organisation.”
Why Upgrade
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Straight Talk from Partners
“The new financials architecture will enable our joint clients to work globally to be
more competitive, think globally to make the right decisions, and manage
globally to lower cost and increase performance.”
-- Brian A. Mitchell, IBM Global Business Services Worldwide and
Americas Oracle Practice Lead Executive
“Oracle continues to invest in a better user experience in E-Business Suite
Financials Release 12—from centralised accounting, tax and supplier
maintenance to a new user interface.”
-- Sean Malinski, Accenture Partner, Global
Business Solutions - Oracle Practice
“IBM found the Oracle E-Business Suite Release12 to be rich in the functionality
that our clients need to succeed in today's business world.”
-- Brian A. Mitchell, IBM Global Business Services Worldwide and
Americas Oracle Practice Lead Executive
How Can I Be Successful?
Plan! Plan! Plan!
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How Can I Be Successful?
Plan! Plan! Plan!
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There's more than one path to R12 … and Fusion
Agenda
Introduction and Overview
Why Release 12?
Key features
What's in it for you?
Q&A
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There's more than one path to R12 … and Fusion
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QUESTIONS
ANSWERS
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There's more than one path to R12 … and Fusion
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