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O R A C L E E-B USINESS S UITE R E L E A

ORACLE E-BUSINESS SUITE RELEASE CONTENT DOCUMENT

Financials

Release 12.1 (through 12.1.3)

Prepared by EBS Product Management & Strategy

Last Updated:

February 2, 2012

Version:

3.0

Copyright © 2010 Oracle Corporation All Rights Reserved

Table of Contents

1. Disclaimer

 

1

2. Introduction

2

2.1.

Purpose of Document

2

3.

New and Changed Features in Financials

3

3.1. Oracle Advanced Global Intercompany System (AGIS)

3

 

3.1.1. Overview

3

3.1.2. Release 12.1.2

3

 

3.1.2.1.

Purge Rejected Intercompany Batches from Interface Table

3

3.2. Oracle Advanced Collections

3

 

3.2.1.

Release 12.1.1

3

3.2.1.1. Customer Dispute Enhancement

3

3.2.1.2. Customer Level Bankruptcy

4

3.2.1.3. Status Assignment at Case and Contract Level

4

3.2.2.

Release 12.1.2

4

 

3.2.2.1.

Multiple Level Collections Strategy Management

4

 

3.2.3.

Release 12.1.3

4

 

3.2.3.1.

Staged Dunning

4

3.3. Oracle Assets

5

 

3.3.1.

Release 12.1.3

5

 

3.3.1.1.

Asset Impairment for Japan Tax Reform 2007

5

3.4. Oracle Cash Management

5

 

3.4.1.

Release 12.1.1

5

3.4.1.1. International Bank Account Number (IBAN) Support

5

3.4.1.2. Bank Identifier Code (BIC) Support

5

3.4.1.3. Payment Group based Bank Statement Reconciliation

5

3.4.2.

Release 12.1.2

6

3.4.2.1. Option to Override Country-Specific Validation for Bank Accounts

6

3.4.2.2. EDIFACT Bank Statement Format Update

6

3.4.2.3. Copy Bank Transaction Codes

6

3.4.2.4. Load Bank Statements for the Current Day

6

3.4.1.

Release 12.1.3

7

 

3.4.1.1.

Manual Entry in Cash Position

7

3.5. Oracle Credit Management

7

 

3.5.1.

Release 12.1.3

7

 

3.5.1.1.

Configurable Analyst Assignment Rules

7

3.6. Oracle Environmental Accounting & Reporting

7

 

3.6.1. Overview

7

3.6.2. Release 12.1.3

8

3.6.2.1. Capture of Energy Usage and Environmental Data

8

3.6.2.2. Emission Sources, Scopes and Factors

8

Oracle E-Business Suite Release 12.1 Release Content Document

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3.6.2.3.

Calculation and Classification of Greenhouse Gas Emissions

9

3.6.2.4. Environmental Ledger

9

3.6.2.5. Flexible Reporting and Organizational Structures

9

3.6.2.6. Pre-Built Analytics and Dashboard with Dynamic User Interaction

9

3.6.2.7. User-Defined Key Performance Indicators

10

3.6.2.8. Target and Threshold Definition

10

3.7. Oracle Financials for EMEA

10

3.7.1.

Release 12.1.1

10

3.7.1.1. Business Intelligence Publisher Support for Select EMEA Reports

10

3.7.1.2. Enhanced Statutory Report Extracts for Italy

11

3.8. Oracle Financials for India

11

3.8.1.

Release 12.1.1

11

3.8.1.1. Fringe Benefit Tax Support

11

3.8.1.2. Inclusive Tax Support

11

3.8.1.3. Retroactive Pricing Support

11

3.8.1.4. Payables Invoices Support for India

11

3.8.2.

Release 12.1.2

11

3.8.2.1. Advanced Pricing Support for India

11

3.8.2.2. Tax Information on Purchase Order Workflow Notification for India

12

3.8.2.3. Reassessing Service Tax on Receipt of Foreign Payments for India

12

3.8.3.

Release 12.1.3

12

3.8.3.1. Descriptive Flex Field (DFF) Support

12

3.8.3.2. Display of Value Added Tax (VAT) Invoice Number in Receivables Transaction Workbench for India12

3.8.3.3. General Ledger Journal Drill-Down Support

12

3.9. Oracle General Ledger

12

3.9.1.

Release 12.1.1

12

3.9.1.1.

Enhanced Financial Statement Generator Reporting to Display Content Set Values

12

3.9.2.

Release 12.1.2

13

3.9.2.1.

Enhanced Financial Statement Generator Reporting to Support Drill-down for Non-Contiguous Account

Ranges

13

3.9.2.2.

Streamlined Excel-based Financial Statement Publishing

13

3.9.3.

Release 12.1.3

13

3.9.3.1. Synchronize Reversing Journals between Primary and Secondary Ledgers

13

3.9.3.2. Limit Accounts in Budget Wizard

13

3.10. Oracle Internet Expenses

13

3.10.1.

Release 12.1.2

13

3.10.1.1. Access Expense Attachments from Invoice

13

3.10.1.2. Support Receipts Required for Mileage Category

14

3.10.1.3. Archive and Purge of Expense Reports

14

3.10.1.4. Read-Only Access to Per Diem and Mileage Details in Audit

14

3.10.1.5. AMEX Loader Option to Not Load Payment Transactions

14

3.10.2.

Release 12.1.3

14

3.10.2.1. Expense Receipt Management Enhancements

14

3.10.2.2. Duplicate Expense Detection

14

3.11. Oracle Legal Entity Configurator

14

3.11.1.

Release 12.1.3

14

3.11.1.1.

Enhanced Legal Addresses

14

3.12. Oracle Loans

15

3.12.1.

Release 12.1.2

15

3.12.1.1. Process Application Fees without Loan Approval

15

3.12.1.2. Ad-hoc Billing and Receipt Application

15

3.12.1.3. Loan Forgiveness

15

3.12.2.

Release 12.1.3

16

3.12.2.1.

Multiple Disbursements during Loan Servicing

16

3.13. Oracle Payables

Oracle E-Business Suite Release 12.1 Release Content Document

16

iii

3.13.1.

Release 12.1.1

16

3.13.1.1. Enhanced Withholding Tax Calculation for Brazil

16

3.13.1.2. Discount Calculation Enhancements

16

3.13.1.3. Subcontractor Management for Engineering and Construction

16

3.13.1.4. Supplier Dispute Processing

16

3.13.1.5. Third Party Payments

17

3.13.1.6. Business Intelligence Publisher Support for Selected Payables Reports

17

3.13.2.

Release 12.1.2

17

3.13.2.1. Replace Supplier Bank Accounts on Invoices

17

3.13.2.2. Change Taxes from Inclusive to Exclusive Online

17

3.14. Oracle Payments

18

3.14.1. Overview

18

3.14.2. Release 12.1.1

18

3.14.2.1. Single Euro Payments Area (SEPA) Support

18

3.14.2.2. Paymentech Integration Certification

18

3.14.2.3. Positive Pay File with Additional Parameters

18

3.14.3.

Release 12.1.2

18

3.14.3.1.

PA-DSS for Credit Card Processing

18

3.15. Oracle Profitability Manager

19

3.15.1. Overview

19

3.15.2. Release 12.1.1

19

3.15.2.1.

Identification of Business Rules that Reference Disabled/Inactive Dimension Members

19

3.16. Oracle Receivables

20

3.16.1.

Release 12.1.1

20

3.16.1.1. Cash Application Work Queue

20

3.16.1.2. Enhanced Line Level Cash Application

20

3.16.1.3. Enhanced Performance for High Volume Receivables Processing

20

3.16.1.4. Golden Tax Adaptor Enhancements for Mainland China

20

3.16.1.5. Business Intelligence Publisher Support for Selected Receivables Reports

21

3.16.2.

Release 12.1.2

21

3.16.2.1. Default Customer Bank Account Information on Unidentified Receipts

21

3.16.2.2. Enhanced Aging Report to Support Multi-Fund Accounts Receivables

21

3.17. Oracle Subledger Accounting

22

3.17.1.

Release 12.1.1

22

3.17.1.1.

Historical Data Initialization for New Reporting Currencies and Secondary Ledgers

22

3.17.2.

Release 12.1.2

22

3.17.2.1. Accounting Rules Detail Report and Enhanced Subledger Accounting Online Inquiry

22

3.17.2.2. Accounting Data On-Demand Upgrade by Subledger

22

3.17.3.

Release 12.1.3

23

3.17.3.1.

New Control Accounts Qualifier

23

3.18. Oracle Treasury

23

3.18.1.

Release 12.1.2

23

3.18.1.1.

International Bank Account Number (IBAN) Support for Counterparty Bank Accounts

23

3.18.2.

Release 12.1.3

23

3.18.2.1.

Reconcile Treasury Transactions of all Deal Types

23

3.19. Oracle U.S. Federal Financials

24

3.19.1.

Release 12.1.2

24

3.19.1.1.

Enhanced Delinquency Processing

24

3.19.2.

Release 12.1.3

24

3.19.2.1. Updates to Year-End Close Processing

24

3.19.2.2. Extract File Changes for Central Contractor Registration (CCR)

24

3.20. Tax, Legal and Regulatory Updates

24

3.20.1. Overview

24

3.20.2. Release 12.1.1

25

3.20.2.1.

Brazil: Fiscal SPED – Support for Fiscal Book Generation and Electronic Invoice Integration

25

Oracle E-Business Suite Release 12.1 Release Content Document

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3.20.2.2.

Japan: Asset Depreciation Enhancements for Japan Tax Reform Act of 2007

26

3.20.2.3.

United Kingdom: Reverse Charge VAT

26

3.20.3.

Release 12.1.2

27

3.20.3.1. Argentina: Turnover Tax Withholding/Perception Regimes

27

3.20.3.2. Brazil: Federal SPED Regulation - Accounting SPED

28

3.20.3.3. China: Golden Tax Adapter Enhancements

29

3.20.3.4. Italy: Annual VAT Extract

29

3.20.3.5. Italy: Annual Withholding Extract

30

3.20.3.6. Japan: Enhanced Support for Tax Reform 2007/2008

30

3.20.3.7. Spain: VAT Legislation: Modelo 340 Informative Declaration

31

3.20.3.8. Spain: VAT Legislation: Modelo 347 Domestic Transactions Turnover Report Changes

31

3.20.3.9. Spain: VAT Legislation: Modelo 415 Canary Island Turnover Report Changes

31

3.20.3.10. Spain: Changes to Taxpayer ID Validation

32

3.20.3.11. United Kingdom: Support for Revaluations and Impairments per Statement of Recommended Practice for

United Kingdom Local Authority Accounting

32

3.20.3.12. U.S. Federal: New FACTS II Edit Checks and File Layout Changes

32

3.20.3.13. U.S. Federal: Enhanced Central Contractor Registration (CCR) Processing

33

3.20.3.14. Global: Support for Asset Impairment in Accordance with International Accounting Standard 36

33

3.20.3.15. Global: Year End Closing Process

33

3.20.4.

Release 12.1.3

33

3.20.4.1. Argentina: Support for Argentina Simplified Regime (Monotributo)

33

3.20.4.2. Belgium: Annual VAT Report File Format v1.3

34

3.20.4.3. Brazil: Support for Brazilian Electronic Collection Document Process (DDA)

34

3.20.4.4. China: Support for Version 2 of the China Accounting Software Data Interface Standard

35

3.20.4.5. India: Enhanced Value Added Tax (VAT) Functionality to Support Flexible Recovery Schedule for India

35

3.20.4.6. India: Value Added Tax (VAT) Statutory Accounting and Reporting for Non-Shippable Items

3.20.4.7. Israel: Israel VAT Report Enhancement

3.20.4.8. Israeli: Withholding Tax File – 856

3.20.4.9. Extract File Changes for Central Contractor Registration (CCR)

U.S. Federal:

3.20.4.10. Regulatory Updates to Statement of Budgetary Resources

U.S. Federal:

3.20.4.11. Regulatory Updates to SF-133 Report

3.20.4.12. Global: European Community VAT Changes for 2010

U.S. Federal:

4. New and Changed Features in Real Estate Management

4.1. Oracle Property Manager

35

35

36

36

36

37

37

38

38

 

4.1.1. Overview

38

4.1.2. Release 12.1.1 Leasing Features

38

4.1.2.1. New Lease Statuses

38

4.1.2.2. Lease Extension Enhancements

38

4.1.2.3. Tenancy Extension and Contraction

39

4.1.2.4. Assignment Occupancy Percent Determined by Attribute on Tenancy

39

4.1.2.5. Multiple Schedules for Same Schedule Day

39

4.1.2.6. Prorating the Billing/Payment Amount based on a New Start Day Field

39

4.1.3.

Release 12.1.1 Variable Rent Features

39

4.1.3.1. Breakpoint Flexibility

39

4.1.3.2. Updating Breakpoints

39

4.1.3.3. Natural Breakpoint Enhancements

39

4.1.3.4. Early Termination of Agreement or Lease

40

4.1.3.5. Extension of Variable Rent Agreements

40

4.1.3.6. New Calculation Methods

40

4.1.3.7. New Partial Year Calculation Methods

40

4.1.3.8. Month-to-Month Roll Forward of Variable Rent Agreements

41

4.1.3.9. Enhancement to Cumulative Calculation Method

41

4.1.3.10. Allowances and Abatements

41

4.1.3.11. Carry Forward of Excess Abatement as Negative Rent

41

4.1.3.12. Constraints

41

4.1.3.13. Updating Volumes

41

4.1.3.14. Additional Frequency Attribute

42

Oracle E-Business Suite Release 12.1 Release Content Document

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4.1.3.15.

Streamlining of Adjustments

42

4.1.3.16. Form Enhancements

42

4.1.3.17. Display of Calculation Results

42

4.1.3.18. Variable Rent Templates

42

4.1.3.19. Term Template Enhancements

42

4.1.3.20. Processing by Property

43

4.1.3.21. Improved Variable Rent Report

43

4.1.4.

Release 12.1.1 Index Rent Features

43

4.1.4.1. Early Termination of Rent Increase Agreements

43

4.1.4.2. Extension of Rent Increase Agreements

43

4.1.4.3. Month-to-Month Roll Forward

43

4.1.4.4. Index Multiplier

43

4.1.4.5. Proration

43

4.1.4.6. Term Length

43

4.1.4.7. Include/Exclude Option

43

4.1.4.8. Recurring Backbill Terms

44

4.1.4.9. Rent Increase Report

44

4.1.5.

Release 12.1.1 Operating Expenses Features

44

4.1.5.1. Create Operating Expense Agreement

44

4.1.5.2. Enter and Maintain Estimated Payment Terms

45

4.1.5.3. Reconciliation

45

4.1.5.4. Operating Expense Agreement Dashboard

46

Oracle E-Business Suite Release 12.1 Release Content Document

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1.

Disclaimer

This Release Content Document (RCD) describes product features that are proposed for the specified releases of the Oracle E-Business Suite. This document describes new or changed functionality only. Existing functionality from prior releases is not described. It is intended solely to help you assess the business benefits of upgrading to the specified release of the Oracle E-Business Suite.

This document in any form, software or printed matter, contains proprietary information that is the exclusive property of Oracle. Your access to and use of this confidential material is subject to the terms and conditions of your Oracle Software License and Service Agreement, which has been executed and with which you agree to comply. This document and information contained herein may not be disclosed, copied, reproduced or distributed to anyone outside Oracle without prior written consent of Oracle. This document is not part of your license agreement nor can it be incorporated into any contractual agreement with Oracle or its subsidiaries or affiliates.

This document is for informational purposes only and is intended solely to assist you in planning for the implementation and upgrade of the product features described. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functionality described in this document remains at the sole discretion of Oracle.

Due to the nature of the product architecture, it may not be possible to safely include all features described in this document without risking significant destabilization of the code.

2.

Introduction

2.1. Purpose of Document

This Release Content Document (RCD) communicates information about new or changed functionality introduced in Oracle E-Business Suite Release 12.1 and subsequent 12.1.x Release Update Packs and off-cycle patches.

For your convenience, features are organized by product, and then by the release in which they first became available. Release 12.1.1 was the first generally-available

release of Release 12.1.

before Release 12.1.2, are designated as Release 12.1.1+. Features released in RUP2 of Release 12.1 are designated as Release 12.1.2, and so on.

Features released in an off-cycle patch on Release 12.1.1, but

Existing functionality in Release 12.0, Release 12.0.x Release Update Packs (RUPs), or

prior releases is not described in this document.

functionality included in prior releases, this document should be read in conjunction with

the Release 12 and Release 12.0.x RUP RCDs. These RCDs can be found in My Oracle

Support Knowledge Document 404152.1 Release Content Documents for E-Business Suite Release 12 and 12.0.x Release Update Packs.

For a complete overview of all

3. New and Changed Features in Financials

3.1. Oracle Advanced Global Intercompany System (AGIS)

3.1.1. Overview

Oracle Advanced Global Intercompany System (AGIS) streamlines the intercompany trading and reconciliation process across ledgers. Oracle AGIS facilitates balanced intercompany transactions for the global enterprise by providing a forum for trading partners to record and approve intercompany transactions in a controlled manner.

Oracle AGIS allows companies to comply not only with local regulations, but also to follow established corporate standards for processing intercompany transactions between related legal entities of an enterprise. It also provides interactive reconciliation reporting, which allows drilldown to the details of Intercompany Account Balances so the source of discrepancies to the balances of each trading partner’s account balances can be found quickly.

3.1.2. Release 12.1.2

3.1.2.1. Purge Rejected Intercompany Batches from Interface Table

Oracle AGIS introduces a new Purge Rejected Intercompany Transactions Program to purge rejected intercompany transaction batches from intercompany interface tables.

Oracle AGIS validates intercompany transaction batches imported from external source applications. Batches that pass validation become intercompany transactions in AGIS. Batches that fail validation are retained in the intercompany interface table with a Rejected status. These rejected intercompany transactions occupy space in the database and can lead to detrimental impact on system performance. Users can use the new concurrent program to preview and purge the rejected intercompany transactions.

3.2. Oracle Advanced Collections

3.2.1. Release 12.1.1

3.2.1.1. Customer Dispute Enhancement

Collectors require the ability to record comments while researching transactions and interacting with customers during the dispute process. A new Internal Comment field is available on all screens used to submit and manage disputes. This field streamlines the dispute submission and approval process by allowing collectors to enter and share comments to internal users such as receivables specialists.

3.2.1.2.

Customer Level Bankruptcy

During various stages of a customer’s bankruptcy process their outstanding business transactions require specialized handling. In prior releases of Advance Collections, individual transactions had to be marked with a Bankruptcy status. Collections agents can now assign Bankruptcy status at the customer level, ensuring that all transactions in all accounts and bill to sites are status and managed uniformly.

This feature has also been back-ported to 12.0 via the standalone patch:

8522751:R12.IEX.A.

3.2.1.3. Status Assignment at Case and Contract Level

Collectors can now better manage their leasing delinquencies by assigning delinquency levels including the lease contract, the lease case, or specific transactions.

3.2.2. Release 12.1.2

3.2.2.1. Multiple Level Collections Strategy Management

In prior releases, collections strategies could only be executed at one business (party, account, bill to site) at a time. Enterprises require the ability to execute strategies simultaneously at different levels for different customers and operating units, for example, in one region - at Bill to level, in another region – at Account level. This new feature allows managers to setup and execute strategies at multiple collection business levels while allowing collections agents to change specific customer strategies to different business levels as required.

Collections managers are now able to plan and manage collections strategies that support their unique business requirements where strategies must be executed at different operating units, groups of customers or specific customers. Collections agents can view strategies at different levels on their work queue and on the strategy tab. Delinquent customers are managed at the business level most appropriate to their business model.

Additionally, background processes including collections and strategy management can now be executed at different levels concurrently.

3.2.3. Release 12.1.3

3.2.3.1. Staged Dunning

In addition to the Aged Dunning method that is based on a customer’s oldest aged invoice, Collections organizations may now use Staged Dunning method. The Staged Dunning method ensures the dunning notices set to a customer automatically incremented based on the collection score and pre-defined number of days between letters being sent.

3.3. Oracle Assets

3.3.1. Release 12.1.3

3.3.1.1. Asset Impairment for Japan Tax Reform 2007

As defined by previous regulatory initiatives in Japan and the Japan Tax Reform of 2007, the impairment functionality in Oracle Assets has been extended to perform and account for asset impairments in compliance with Japanese accounting regulations. Impairment losses can now be derived and recorded for Japan-specific depreciation methods.

The following impairment feature functionality is now available for Japan depreciation methods.

Japan specific impairment loss calculations

Assignment and impairment of assets within Cash Generating Units

Impairment of fully reserve and non-depreciating assets

Impairment of assets exceeding depreciation limits

3.4. Oracle Cash Management

3.4.1. Release 12.1.1

3.4.1.1. International Bank Account Number (IBAN) Support

International Bank Account Number (IBAN) is an international standard for identifying bank accounts across national borders in a way that would minimize the risk of propagating transaction errors. Cash Management now validates IBAN at the time of recording bank account details. This validation is based on standard Modulo-97 checks.

This feature has also been back-ported to 12.0.6 via the standalone patch:

7552541:R12.IBY.A.

3.4.1.2. Bank Identifier Code (BIC) Support

Bank Identifier Code (BIC) is a unique identification for bank branches. This code can be 8 or 11 characters in length. Cash Management now validates the length of BIC when recording bank branch details.

This feature has also been back-ported to 12.0.6 via the standalone patch:

7552541:R12.IBY.A.

3.4.1.3. Payment Group based Bank Statement Reconciliation

Oracle Cash Management now utilizes the new Payment Group Number attribute as an optional matching criterion for manual and automated reconciliation of bank statements.

This feature has also been back-ported to 12.0.6 via the standalone patch:

7552541:R12.IBY.A.

3.4.2. Release 12.1.2

3.4.2.1. Option to Override Country-Specific Validation for Bank Accounts

Sometimes legacy bank account numbers do not conform to modern country-specific validation rules. Users can now disable the default country-specific bank validations to migrate legacy bank account information.

This feature has also been back-ported to following releases:

Release

Patch Number

12.0.4

7582842:R12.CE.A

12.1.1

8871846:R12.CE.B

3.4.2.2. EDIFACT Bank Statement Format Update

The bank statement loader program supports EDIFACT statements. With this release, the following additional data processing features are addressed:

Support for non-numeric characters in bank balances. The opening and closing balance amounts sent in the EDIFACT statements contain non-numeric characters. The bank statement loader and import program is enhanced to convert the non-numeric characters into numeric values.

Support loading and importing the Record 05. The current seeded loader is enhanced to handle the record type 05. This additional record is defined as part of the EDIFACT standard and contains the contextual information of Record 04.

This feature been back-ported to following releases:

Release

Patch Number

12.0.4

8874185:R12.CE.A

12.1.1

8942035:R12.CE.B

3.4.2.3. Copy Bank Transaction Codes

Bank transaction codes are used by banks to identify the types of transactions on bank statements. The codes are set up for each bank account for reconciliation purposes. For organizations having several bank accounts, it can be a cumbersome process to manually setup these transaction codes since most bank accounts for a specific bank use the same transaction codes.

A new concurrent program has been provided to copy the bank transaction codes from

one bank account to another bank account(s).

3.4.2.4.

Load Bank Statements for the Current Day

In

previous releases, users could only import bank statements and perform bank balance

maintenance for past dates. Users can now enter or import bank statements and perform bank balance maintenance for the current date.

This feature been back-ported to following releases:

Release

Patch Number

12.0.6

8965556:R12.CE.A

12.1.1

9090829:R12.CE.B

3.4.1. Release 12.1.3

3.4.1.1. Manual Entry in Cash Position

The cash position functionality has been enhanced to allow cash managers the ability to manually enter cash flows into their cash positions allowing for greater flexibility in their decision making process.

This feature been back-ported to following releases:

Release

Patch Number

12.0.6

9059098:R12.CE.A

12.1.1

9059098:R12.CE.B

3.5. Oracle Credit Management

3.5.1. Release 12.1.3

3.5.1.1. Configurable Analyst Assignment Rules

In addition to the seeded assignment rules, Oracle Credit Management can now assign credit analyst to case folders based on user-defined assignment rules and parameters.

This offers greater flexibility in addressing customer specific work load management needs.

3.6. Oracle Environmental Accounting & Reporting

3.6.1. Overview

Oracle Environmental Accounting and Reporting enables organizations to track their greenhouse gas (GHG) emissions and other environmental data against reduction targets, and facilitates environmental reporting for both voluntary and legislated emissions reporting schemes.

Oracle Environmental Accounting and Reporting enables organizations to capture environmental data either electronically or manually; convert that to greenhouse gas emissions; and identify opportunities to reduce cost and CO2 emissions.

Oracle Environmental Accounting and Reporting is available for Oracle E-Business Suite version 12.1 and higher. It has been developed using the native technology of Oracle E-Business Suite, backed by a common business analytics layer developed in Oracle Business Intelligence Suite Enterprise Edition Plus, which is a required technology component.

3.6.2. Release 12.1.3

3.6.2.1. Capture of Energy Usage and Environmental Data

Oracle Environmental Accounting and Reporting (EA&R) integrates with Oracle Accounts Payables and Oracle Inventory Management enabling customers to perform environmental accounting for various transactions, enabling the capture of the energy usage, fuel usage and other environmental data through AP invoices, Inventory issues, Environmental Ledger and Web ADI. Using the usage information captured during transactions or entered manually, EA&R calculates the related greenhouse gas (GHG) emissions through the application of energy and emission factors. This approach presents users with a familiar and consistent experience maintaining data integrity and security with a single source of truth and ensuring data completeness and accuracy. Integration with the native ERP system reduces environmental data management costs, leveraging existing IT systems, minimizing organizational impacts and assuring rapid time to value.

3.6.2.2. Emission Sources, Scopes and Factors

An emission factor is the quantity of a greenhouse gas emitted per unit of energy (kg CO 2 -e /GJ), fuel (kg CO 2 -e/t coal) or a similar measure. The EA&R application provides the ability to define, change and update emission sources and factors, automatically determining the correct transformation factors for each transaction. It also enables users to select location specific energy and emission factors for environmental accounting of transactions that are related to emission sources. It also enables setup of custom emission factors. Emission transformation factors are stored and can readily be updated over time with date effectiveness to manage the change of emissions factors and for recalculation purposes.

Emission calculation techniques range from usage of emission factors to direct monitoring. The most common techniques used for emission calculation are:

Calculations based on the purchased quantities of commercial fuels, such as natural gas and heating oil, using published emission factors. This method is used for Scope 1 emissions.

Calculations based on metered electricity consumption and supplier-specific, local grid, or other published emission factors. This method is used for Scope 2 emissions.

Calculations based on activity data such as fuel use or passenger miles and published or third-party emission factors. This type of emissions is usually classified as Scope 3 emissions.

Oracle Environmental Accounting and Reporting allows you to update historical factors using the GHG Sources window and provides the “Recalculate Emissions” concurrent program to recalculate the emission and energy values based on the revised factors.

The solution enables complete audit trail for entries and updates reducing data assurance costs.

3.6.2.3.

Calculation and Classification of Greenhouse Gas Emissions

Oracle Environmental Accounting and Reporting provides the built-in mechanisms for calculating emissions and classifying them as Scope 1, 2, or 3 using the Greenhouse Gas Protocol guidelines published by the World Resources Institute. The Emissions Calculation Engine uses the collected usage data to calculate the relevant emissions using seeded formulas based on the energy and emission factors setup for the emission sources. This enables organization to accurately communicate greenhouse gas emissions and other environmental impacts to constituents including regulators, customers, shareholders and employees.

3.6.2.4. Environmental Ledger

The Environmental Ledger stores all changes to the environmental transactions including voiding, reversal, recalculation, and measurement criterion updating transactions. The changing landscape of compliance mandates drives companies to provide more comprehensive, transparent, accurate and auditable data. Oracle Environmental Accounting and Reporting allows you to have a single source of truth assuring data quality and auditability.

3.6.2.5. Flexible Reporting and Organizational Structures

Oracle Environmental Accounting and Reporting enables the creation of Environmental Organizations. An organization is defined as a single undertaking or an enterprise or any entity that performs activities or a series of activities that emit greenhouse gases and/or produces, or consumes energy at a single site and is attributable to a single industry sector. An organization can have multiple hierarchies for reporting, for example, government reporting hierarchy, operational hierarchy, or legal structure hierarchy. In addition an organization can be a division, company subsidiary, or operation (i.e. facilities, plants). The integration with the native ERP enables leveraging existing structures as well as specifying additional hierarchies for GHG Protocol and other reporting guidelines, including the ability to define aggregation levels and to manage acquisitions and divestitures.

3.6.2.6. Pre-Built Analytics and Dashboard with Dynamic User Interaction

Pre-built Oracle Business Intelligence Enterprise Edition (OBIEE) dashboards enable the dynamic generation of reports providing insight into an organization’s emissions and other environmental impacts. The dashboards provide information on energy usage, emissions, key performance indicators (KPIs), activities and transactions. Users can view graphical representations of the data; drill down into output of past, current, and projected data; analyze historical trends; define variance thresholds and receive alerts; and publish and distribute reports in multiple formats. The pre-built OBIEE reporting and analytics dashboards also include the quantitative responses to the Carbon Disclosure Project (CDP). OBIEE’s powerful and flexible framework allows for the quick creation of reports for reporting schemes such as Climate Registry (USA), EPA 40 CFR Part 98 Rule (USA), Carbon Reduction Commitment (UK), and National Greenhouse and Energy Reporting Act (Australia). Measuring performance and setting targets allows organizations to become more productive, profitable and sustainable by

providing powerful insights into high opportunity areas for emissions reductions, energy savings, and cost savings. In addition, OBIEE allows users to quickly create custom user defined reports.

3.6.2.7.

User-Defined Key Performance Indicators

Oracle Environmental Accounting and Reporting enables organizations to create and modify standard and custom industry-specific key performance indicators (KPIs) to measure performance and monitor key environmental metrics such as energy, waste, and water. Users can normalize data to operational metrics and use a drag-and-drop environment in OBIEE to create custom reports. Examples of these KPIs are energy usage per square foot, water usage by employee, etc. Using these metrics organizations can benchmark and affect behavioral change to reduce environmental impacts in the relative context of the organization’s growth.

3.6.2.8. Target and Threshold Definition

Oracle Environmental Accounting and Reporting enables organizations to establish a baseline of its greenhouse gas emissions, energy usage, and other key environmental indicators and set reductions targets. Graphical indicators on the Business Intelligence dashboards illustrate to users on a timely basis whether the organization is performing above, below, or in-line with the targets so that corrective actions can be taken as needed to successfully execute on the organization’s sustainability initiatives.

3.7. Oracle Financials for EMEA

3.7.1. Release 12.1.1

3.7.1.1. Business Intelligence Publisher Support for Select EMEA Reports

The following Oracle Financials for EMEA reports have been re-written utilizing the Business Intelligence Publisher (BIP) tool. BIP based reports offer greater flexibility to end users in changing report layouts and formats.

Payables Turnover Report

Supplier Statements

Receivables Aggregate VAT Statement

Customer Statements

Regional Cash Desk Report

Account Analysis Report

Account Analysis Detailed Reporting

3.7.1.2.

Enhanced Statutory Report Extracts for Italy

Article 37 of Italian Legislative Decree No. 223/2006 introduced a new fiscal requirement whereby all legal organizations must provide customer and supplier listings in electronic format to the Italian fiscal authorities on a yearly basis.

The Italian supplier and customer listing reports available in prior releases are now replaced with new Italian Customer and Supplier Listing data extracts.

3.8. Oracle Financials for India

3.8.1. Release 12.1.1

3.8.1.1. Fringe Benefit Tax Support

Fringe Benefit Tax (FBT) was introduced in India as part of Budget 2005-2006, to tax specific employee expenses not treated as individual income.

Oracle Financials for India enables computation, payment, tracking, and statutory reporting of Fringe Benefit Taxes on non-payroll expenses.

3.8.1.2. Inclusive Tax Support

Oracle Financials for India now supports the setup, calculation, accounting and reporting of inclusive taxes for payables and receivable transactions.

3.8.1.3. Retroactive Pricing Support

In order to accurately reflect payable obligations, it is necessary to propagate retroactive price modifications on blanket agreements to downstream documents such as releases and standard purchasing orders.

The retroactive pricing process is modified to recalculate India taxes on transactions such as receipts, accruals, credit memos, and price correction invoices. A new user interface enables users to claim credit for increases in recoverable taxes.

3.8.1.4. Payables Invoices Support for India

Oracle Financials for India now supports tax calculation for unmatched payables invoices. A new window is available to manage India taxes on unmatched invoices.

3.8.2. Release 12.1.2

3.8.2.1. Advanced Pricing Support for India

Oracle Financials for India now allows users to calculate excise and VAT assessable values based on the advanced price list. The advanced price list is based on the item category. Users can associate a price list with an item category to determine assessable values for all items classified under that category.

3.8.2.2.

Tax Information on Purchase Order Workflow Notification for India

Oracle Financials for India now enables reporting and display of India taxes on purchasing approval workflow notifications. India taxes are included in the following:

Purchase order, requisitions, and releases workflow notifications

Total amount reported on workflow notifications

Approval limit in the workflow hierarchy

Change order workflow

Additionally, users can modify the tax amount, precedence, vendor, and vendor site information at the time of approval.

3.8.2.3. Reassessing Service Tax on Receipt of Foreign Payments for India

Oracle Financial for India enables users to comply with statutory requirements by allowing users to recalculate the service tax on receipt of foreign currency payments based on the applicable exchange rate on the receipt date.

3.8.3. Release 12.1.3

3.8.3.1. Descriptive Flex Field (DFF) Support

Users can now capture customer specific data using descriptive flex fields within Oracle Financials for India (OFI) forms. The data captured is stored and available within the OFI specific tables.

3.8.3.2. Display of Value Added Tax (VAT) Invoice Number in Receivables Transaction

Workbench for India

The VAT Invoice number is now displayed within the reference field of Receivables Transaction Workbench. This simplifies the process of matching receipt of payments against a VAT invoice.

3.8.3.3. General Ledger Journal Drill-Down Support

Users can now drill down from General Ledger to transactions for the accounting entries generated by Oracle Financials for India.

3.9. Oracle General Ledger

3.9.1. Release 12.1.1

3.9.1.1. Enhanced Financial Statement Generator Reporting to Display Content Set

Values

Users can now publish a Financial Statement Generator (FSG) report with a content set. When the Page Expand option is selected, each value in the content set becomes visible as an individual tab in the Microsoft Excel workbook.

3.9.2. Release 12.1.2

3.9.2.1. Enhanced Financial Statement Generator Reporting to Support Drill-down for

Non-Contiguous Account Ranges

General Ledger provides a streamlined drill path from the monetary amounts in financial statements to the underlying detail balances. After running a FSG report, users can drill from any summarized financial balance in the report directly to the detail account balances that comprise the summary amount, even if the summary amount represents multiple non-contiguous account ranges.

This process allows users to perform the drill down efficiently in one step and eliminates the need to perform multiple searches by selecting one account range at a time. It also improves usability by enabling the user to see all the information on a single page.

3.9.2.2. Streamlined Excel-based Financial Statement Publishing

Users can now publish FSG reports natively as Excel files. Users can create presentation templates using Excel, and then run reports using BI Publisher’s Excel publishing capabilities to generate an Excel file that opens directly in Excel. Users can then drill to the underlying details, leveraging General Ledger’s Account Analysis and Drilldown capability.

3.9.3. Release 12.1.3

3.9.3.1. Synchronize Reversing Journals between Primary and Secondary Ledgers

Oracle General Ledger now streamlines the propagation of journal reversals from the primary ledger to the associated secondary ledgers. The manual reversal of primary ledger journal entries now automatically reverses the corresponding journal entries in the secondary ledger.

3.9.3.2. Limit Accounts in Budget Wizard

In prior releases, users could only use specific account code combinations ranges in the Oracle General Ledger Budget Wizard to limit accounts for the budget entry process.

The Budget Wizard now allows users to use low and high values for one or more segments in the account range.

3.10. Oracle Internet Expenses

3.10.1. Release 12.1.2

3.10.1.1. Access Expense Attachments from Invoice

The Expense Report Export program has been enhanced to provide the option Transfer Attachments to transfer attachments from an expense report to an invoice. This option enables the payables person to access the attachment from Invoice without having to use Internet Expenses responsibilities and efficiently execute audits.

3.10.1.2.

Support Receipts Required for Mileage Category

United Kingdom HM Revenue & Customs department requires employees to submit invoices/tax receipts to employers for any mileage related claims so that the employers can recover VAT on fuel purchased by employees used for business purposes.

The Receipts Required feature has been enhanced to provide support for expense types associated with the Mileage expense category.

3.10.1.3. Archive and Purge of Expense Reports

This new program enables administrators to archive and purge expense reports related data that is no longer needed.

3.10.1.4. Read-Only Access to Per Diem and Mileage Details in Audit

The Audit Expense Report page has been enhanced to allow auditors to view Per Diem & Mileage category expense details.

3.10.1.5. AMEX Loader Option to Not Load Payment Transactions

The American Express Transaction Loader and Validation program has been enhanced to optionally load payment transactions.

3.10.2. Release 12.1.3

3.10.2.1. Expense Receipt Management Enhancements

Oracle Internet Expenses has been enhanced to provide users the ability to define rules to accept, track and route imaged receipts to the appropriate auditor work queue.

Faxed receipts and/or emailed scanned receipts can now be associated with expense reports as receipt images.

User defined rules can be setup to enforce receipt submission and reimbursement thresholds in addition to highlight missing receipts for expense lines.

3.10.2.2. Duplicate Expense Detection

Duplicate Expense Detection Rules are now available to detect duplicate expense claims aiding customers in decreasing administration costs by ensuring only reimbursement of valid expense claims.

3.11. Oracle Legal Entity Configurator

3.11.1. Release 12.1.3

3.11.1.1. Enhanced Legal Addresses

In prior releases, when defining the address for a new legal entity, users could only select from existing locations identified as legal addresses. Users can now select any existing location as an address for a legal entity.

This feature has also been back-ported to following releases:

Release

Patch Number

12.0.6

6116752:R12.XLE.A

12.1.1

6116752:R12.XLE.B

3.12. Oracle Loans

3.12.1. Release 12.1.2

3.12.1.1. Process Application Fees without Loan Approval

Loan application fee is a fee charged to process an application for a loan, such as a home mortgage from a lender or mortgage broker. Loan application fees are charged to cover

some of the costs involved in processing the application including credit checks, property appraisals and basic administrative costs. Such fees are often non-refundable regardless

of the outcome of the application review and are charged upfront.

Previously, in order for any loan fee to be processed, the loan application had to be approved. This new feature allows processing and accounting for loan fees before the loan gets approved or rejected.

The fees now can be charged manually on an ad hoc basis or automatically based on a certain event in the loan application lifecycle (loan origination, loan activation, loan submission for approval).

3.12.1.2. Ad-hoc Billing and Receipt Application

Borrowers receive their loan repayment bills when an automated process determines that the next installment is due. This new feature allows users to manually select the next

installment and create a customer bill on an ad hoc basis. Users now also have an option

to create a loan without a schedule of installments and bill customers manually on an ad

hoc basis.

In addition, the process of applying customer payments to loans has been streamlined by

providing users an option to perform receipt application within the loan transaction

context, without the need to switch to Receivables.

A new system profile option (LNS: Allow to Bill and Apply from UI) has been

introduced to control user’s access to this feature.

3.12.1.3. Loan Forgiveness

The Loan Forgiveness feature allows users to create and manage loan forgiveness option loan programs. By populating a Receivables Activity in the new system option Loan Forgiveness Adjustment: Activity Name, loan forgiveness is enabled or disabled for the loan products within the organization.

Loan forgiveness is applied at the individual loan level as a percentage of the loan installment amount and can be modified throughout the loan’s duration. Loan forgiveness details are visible for each individual loan via the Servicing Center:

Overview: Summary window. During billing, the forgiven amount is displayed and accounted for as an adjustment on the customer invoice.

3.12.2. Release 12.1.3

3.12.2.1. Multiple Disbursements during Loan Servicing

In prior releases, direct loans could only be adjusted using multiple disbursements with disbursement amount, percentage and a specific target date freeze before the approval, activation or funding of the loan. Now, loan managers can perform adjustments to the loan amount in active and multiple disbursements of the loan after the loan is activated, funded or in the servicing stage.

Additionally, for Extended Repayment Schedule (ERS) loans, loan managers can now add and convert additional receivables transactions to existing loans in the servicing stage. Managers can also modify the outstanding amount of receivables or adjust the receivables amount based on the payment terms.

3.13. Oracle Payables

3.13.1. Release 12.1.1

3.13.1.1. Enhanced Withholding Tax Calculation for Brazil

Brazilian tax regulations require withholding taxes to be deducted at multiple business event points such as recording and payment of invoices.

In prior releases, withholding tax was deducted either during validation or payment of invoices. Oracle Payables has been enhanced to allow application of withholding taxes both during invoice validation and payment.

3.13.1.2. Discount Calculation Enhancements

Suppliers offer discounts for early payment. Early payment discounts can be fixed monetary amounts or calculated on a percentage basis.

In prior releases, discounts could be defined in percentage terms only. Oracle Payables now allows discounts to be specified in monetary amounts. When a percentage as well as an amount is available, the higher or lower of the two can be specified for application.

3.13.1.3. Subcontractor Management for Engineering and Construction

Oracle Payables has been enhanced to automatically apply holds on supplier invoices when the Pay When Paid or the PO Deliverable Control option is enabled on purchase orders. During invoice validation, such holds are automatically released provided authorizations have been recorded within Oracle Project Accounting or Oracle Purchasing.

3.13.1.4. Supplier Dispute Processing

Supplier invoices may be short paid to expedite dispute settlements. The Payables Invoice Workbench has been enhanced to capture the invoice amount originally claimed by the supplier and the reason for short payment.

3.13.1.5.

Third Party Payments

Suppliers can specify a related trading partner to be paid on their behalf. The payments made on behalf of suppliers to other trading partners are termed as third party payments.

Oracle Payables has been enhanced to record third party relationships and to process third party payments. Withholding and 1099 processing continue to occur for invoicing suppliers.

3.13.1.6. Business Intelligence Publisher Support for Selected Payables Reports

The following Oracle Payables reports have been re-written utilizing the Business Intelligence Publisher (BIP) tool. BIP based reports offer greater flexibility to end users in changing report layouts and formats:

Withholding Tax by Invoice Report

Bills Payable Maturity Date Report

Discounts Available Report

Payment Audit by Voucher Number

Prepayments Status Report

3.13.2. Release 12.1.2

3.13.2.1. Replace Supplier Bank Accounts on Invoices

In today’s business environment, it is a common practice to change bank accounts. If suppliers change their bank accounts, Oracle Payables can now automatically update all unpaid and partially paid invoices with the new bank account information. When users end date an existing supplier bank account and provide a new active bank account, Oracle Payables will automatically update the remit-to bank account information on unpaid and partially paid invoices. This streamlines transaction processing and prevents the need to update each invoice manually.

This feature has been back-ported to 12.1.1 via the standalone patches:

6867725:R12.AP.B and 6615694:R12.IBY.B.

3.13.2.2. Change Taxes from Inclusive to Exclusive Online

The tax regulations in many countries require that certain types of taxes on invoices be applied as inclusive or exclusive to the price of the good or service. This is common in countries that report VAT, such as in the United Kingdom, where the VAT tax can be treated as inclusive or exclusive depending on the type or price of the good or service.

Oracle Payables provides the flexibility to override the inclusive or exclusive nature of taxes that default from the eBTax setup. While entering an invoice, users can change taxes from inclusive to exclusive or vice versa to match the tax shown on the physical invoice. This ensures more accurate invoice entry and tax reporting.

3.14. Oracle Payments

3.14.1. Overview

Oracle Payments provides a highly configurable and robust engine to disburse and receive payment, and integrates with multiple products that require support for payment processing. Oracle Payments processes invoice payments from Oracle Payables, bank account transfers from Oracle Cash Management and settlements against credit cards and bank accounts from Oracle Receivables. Oracle Payments provides the infrastructure required to connect these applications and others with third party payment systems and financial institutions.

3.14.2. Release 12.1.1

3.14.2.1. Single Euro Payments Area (SEPA) Support

The Single Euro Payments Area (SEPA) guidelines require that credit transfers be executed using standard SEPA Credit Transfer initiation messages. These are XML messages generated as per the ISO 20022 framework and conforming to SEPA credit transfer schemes negotiated with banks.

Oracle Payments has been enhanced to support SEPA Credit Transfers. Messages are initiated and formatted utilizing the existing disbursement framework.

This feature has also been back-ported to 12.0.4 via the standalone patch:

7552541.R12:IBY.A.

3.14.2.2. Paymentech Integration Certification

Paymentech is a leading Back End Processor (BEP) in providing financial settlement services. Oracle Payments is certified with Paymentech for seamless transmission of credit card, debit card and direct debit transactions.

This feature has also been back-ported to 12.0.4 via the standalone patch:

6975269:R12.IBY.A.

3.14.2.3. Positive Pay File with Additional Parameters

The Positive Pay File report details payments made to specific trading partners. A new Positive Pay File with Additional Parameters report has been introduced to include previous payments and, optionally, voided check information.

This feature has also been back-ported to 12.0.0 via the standalone patch:

6939650:R12.IBY.A.

3.14.3. Release 12.1.2

3.14.3.1. PA-DSS for Credit Card Processing

To ensure all payment type applications that interact with payment cards meet consistent security standards, the Payment Card Industry (PCI) Security Standards Council encourages and in some cases mandates that merchants use only PA-DSS (Payment Application Data Security Standards) certified payment application software.

Certification applies to software applications that store, process, or transmit payment cardholder data as part of an authorization or settlement process. This certification reassures users that Oracle Payments is properly handling and securing sensitive payment card information. Certification includes proper adherence with industry accepted data storage guidelines, encryption algorithms, secured coding practices, and secured transmission standards.

Oracle Payments customers benefit from the ongoing enhancements made to conform to PA-DSS requirements. These PA-DSS enhancements are also available as standalone patches to customers on Release 12.0 and 12.1.1.

3.15. Oracle Profitability Manager

3.15.1. Overview

Oracle Profitability Manager provides enterprises with a greater insight into the profitability of current operations and empowers them with actionable information for making decisions and driving improved profitability. As part of Oracle’s Corporate Performance Management (CPM) suite, Oracle Profitability Manager is a comprehensive solution for the calculation, analysis and reporting of profitability.

Oracle Profitability Manager was first released with Release 12. It is the integration of two existing applications:

Oracle Performance Analyzer (part of the Oracle Financial Services suite)

Oracle Activity-Based Management (part of the E-Business Suite)

In Release 12.0, major emphasis was placed on maintaining all the industry leading features and functions available in earlier versions of the Financial Services Applications (OFSA), while simultaneously leveraging the power of the Oracle E-Business Suite. The Profitability Manager application broadens the industry appeal of profitability analytics, and repeats the success the legacy products had beyond financial services enterprises.

3.15.2. Release 12.1.1

3.15.2.1. Identification of Business Rules that Reference Disabled/Inactive Dimension

Members

Users manage metadata as a standard business process related to the construction and maintenance of business rules with the Profitability Manager application. Over time, users make changes to metadata like hierarchies and dimension members, and in some cases "disable" dimension members to indicate that they are no longer active or no longer used as part of the profitability calculations. A good example of this would be when a company reorganizes, and some departments are transferred, combined or eliminated. In this example, data for those "old" departments would not be used in future models.

To help the user understand how these metadata changes affect their profitability models, a new feature is introduced which indicates where disabled dimension members are used in mapping rules, or in hierarchies. Users are provided a concurrent program that will scan a set of business rules, and write out the results to tables that can be used for reporting with the tool of the user's choice. In addition, a purge routine has also been provided that allows the user to clean up data from previous runs.

3.16. Oracle Receivables

3.16.1. Release 12.1.1

3.16.1.1. Cash Application Work Queue

Receivables departments need to efficiently allocate and monitor the workload of receipt application personnel. Unapplied customer receipts can now be automatically assigned to specific cash application specialists for further processing. This assignment is done based on user defined rules by a new concurrent program: Assign Cash Application Work Items.

Using the new Cash Application Work Queue workbench, specialists can efficiently manage their workload, review unapplied receipts and take further actions on unapplied receipts. The Cash Workload Review Report is now available to review and monitor the current workload of assignees.

3.16.1.2. Enhanced Line Level Cash Application

Business operating in certain industries need to track balances and apply customer payments at the invoice line level.

Oracle Receivables now maintains line level balances for all transactions originating from sources enabled for line level operations. The Auto Lockbox matching routine has been enhanced with an open call-out to invoke custom transaction line selection logic.

3.16.1.3. Enhanced Performance for High Volume Receivables Processing

Companies operating in industries such as telecommunications, retail, insurance and utilities process large volume of invoices and receipts on a daily basis. Oracle Receivables has significantly enhanced the performance and scalability of the following key batch programs by implementing parallel processing logic and fine tuning database indexes:

AutoInvoice Master Program

Automatic Clearing for Receipts

Automatic Remittances Master Program

Lockbox Execution Program

3.16.1.4. Golden Tax Adaptor Enhancements for Mainland China

All businesses operating in mainland China are required to use a government certified tax application for VAT calculation, VAT invoice generation, and statutory tax reporting. This system is referred to as Golden Tax. Golden Tax Adaptor provides a seamless integration between Oracle Receivables and the Golden Tax system.

Golden Tax Adaptor now supports three additional VAT invoice types: special VAT invoices, common VAT invoices, and special VAT invoices for waste and outdated materials.

Credit memo processing through Golden Tax Adaptor has been enhanced with the following new features:

Processing of on-account credit memos and credit memos referring to multiple invoices

China Tax Office notification number support for credit memos on Special VAT Invoices

Validation rules to prevent export of credit memos with duplicate or incorrectly formatted notification numbers

3.16.1.5. Business Intelligence Publisher Support for Selected Receivables Reports

The following Oracle Receivable reports have been re-written utilizing the Business Intelligence Publisher (BIP) tool. BIP based reports offer greater flexibility to end users in changing report layouts and formats.

AR Reconciliation Report

Customer Open Balance Letter

Incomplete Invoices Report

Invoice Exception Report

Receipt Analysis - Days Late

3.16.2. Release 12.1.2

3.16.2.1. Default Customer Bank Account Information on Unidentified Receipts

Auto Lockbox now derives customer bank account information based on the Magnetic Ink Character Recognition (MICR) number supplied in the lockbox data file. This information is defaulted on unidentified receipts and can be manually associated with a customer record for matching receipts in subsequent runs of Auto Lockbox

This feature has also been back-ported to 12.1.1 via standalone patch:

8422361:R12.AR.B

3.16.2.2. Enhanced Aging Report to Support Multi-Fund Accounts Receivables

Public sector companies and federal agencies often need to record receivables against multiple operating funds on an invoice. Operating funds are represented as balancing segments. In prior releases, Oracle Receivables aging reports could be used to monitor fund level balances only when an invoice impacted a single balancing segment.

Oracle Receivables introduces a new Aging 7 Bucket by Account -- Multi-Fund Accounts Receivables Report. This report lists receivables balances regardless of the number of funds associated with any invoice.

All other Oracle Receivables aging reports remain unchanged.

3.17. Oracle Subledger Accounting

3.17.1. Release 12.1.1

3.17.1.1. Historical Data Initialization for New Reporting Currencies and Secondary

Ledgers

When setting up new secondary ledgers or reporting currencies with an existing primary ledger for new local or corporate reporting requirements, all historical transaction accounting amounts and balances have to be initialized in these new ledgers/currencies to ensure proper reconciliation with their primary ledger counterparts. Oracle Subledger Accounting now provides a new concurrent program: SLA Secondary/ALC Ledger Historic Update for this particular need. This program retroactively posts historical transaction accounting data from the existing primary ledger to the newly created secondary or reporting currency ledgers. Once this program is executed, reports and inquiries will correctly display secondary ledger or reporting currency amounts.

3.17.2. Release 12.1.2

3.17.2.1. Accounting Rules Detail Report and Enhanced Subledger Accounting Online

Inquiry

Oracle Subledger Accounting introduces a new Subledger Accounting Rules Detail Listing Report to provide detailed information about accounting rules defined for a subledger accounting method. The report can be submitted from the individual subledger applications or from Oracle General Ledger. In addition, the report can be submitted for custom applications registered within Oracle Financial Accounting Hub.

Users can now use the new report to easily review the following setup details:

Subledger Accounting Method

Journal Line Definition

Journal Line Type

Account Derivation Rule

Journal Header Description

Journal Line Description

The online Subledger Journal Entry page has also been enhanced with two new sections to display the journal line definition and the journal line type used for generating an accounting entry.

3.17.2.2. Accounting Data On-Demand Upgrade by Subledger

During the Release 12 upgrade process, customers can choose the time span for converting historical accounting data to the new Subledger Accounting tables. There is also a separate program that allows customers to extend the data conversion to older accounting periods after the upgrade. This program runs for all subledgers at the same time.

In this release, Oracle Subledger Accounting has enhanced this process by introducing a new concurrent program Upgrade Historical Subledger Transaction Accounting that allows the historical accounting data conversion be done independently for each subledger.

3.17.3. Release 12.1.3

3.17.3.1. New Control Accounts Qualifier

“Restrict Manual Journals” has been added as a new qualifier on the natural account segment to provide users the ability to specify the control accounts that do not require third party detail for posting.

3.18. Oracle Treasury

3.18.1. Release 12.1.2

3.18.1.1. International Bank Account Number (IBAN) Support for Counterparty Bank

Accounts

The International Bank Account Number, or IBAN, was designed to standardize and simplify the transfer of international payments. A new field has been added to the Counterparty Settlements Account Details window to support the input of the International Bank Account Number for the counterparty.

The seeded confirmation templates and X12 Electronic Funds Transfer script now use the IBAN for both the company and counterparty, if provided. The Daily Payments/Receipts Report displays the IBAN, if it is specified, rather than the account number for the counterparty.

3.18.2. Release 12.1.3

3.18.2.1. Reconcile Treasury Transactions of all Deal Types

Oracle Treasury now allows the use of Retail Term Money Market deal transactions within the Oracle Cash Management Bank Statement reconciliation. With this enhancement, users can view and use all treasury deal type transactions when reconciling bank statements within Oracle Cash Management providing a single point for reconciliation.

This update has also been back-ported to the following releases:

Release

Patch Number

12.0.6

9491322:R12.XTR.A

12.1.1

9393372:R12.CE.B

3.19. Oracle U.S. Federal Financials

3.19.1. Release 12.1.2

3.19.1.1. Enhanced Delinquency Processing

Federal delinquency processing features have been enhanced to provide additional configuration options including the ability to configure:

Finance charges to be assessed on other finance charges

Finance charges once for an installment invoice or on each installment for an installment invoice

The source of the distribution for finance charges (for example, from the original invoice distribution or from the transaction type).

3.19.2. Release 12.1.3

3.19.2.1. Updates to Year-End Close Processing

The Federal Year End Close process has been modified to add a Closing Method to accommodate configuration of Pre-Closing as well as Closing accounting entries. Closing Method and Closing Period have been added as parameters to the Year End closing process.

3.19.2.2. Extract File Changes for Central Contractor Registration (CCR)

CCR enhancements include:

Placing specific named holds (instead of supplier site holds) on invoices and scheduled payments when the supplier’s registration status becomes inactive, and automatically releasing the hold when the registration becomes active

Masking the CCR account user identifier and password information on concurrent request parameters and log file output

Providing validation on the Payables Assignment page to prevent the association of a CCR vendor to an existing supplier when their TINS do not match

Updating unpaid invoices with the latest bank account information from CCR when the bank information has changed for a CCR registration.

3.20. Tax, Legal and Regulatory Updates

3.20.1. Overview

The following section provides information about the updates introduced to address tax, regulatory and legislative changes.

Note: Most of the following updates have also been back-ported to previous releases via standalone patches. Please refer to the sections below for information on patch numbers.

3.20.2. Release 12.1.1

3.20.2.1. Brazil: Fiscal SPED – Support for Fiscal Book Generation and Electronic

Invoice Integration

Support for Fiscal Book Generation

The Brazilian Fiscal SPED requires organizations to submit a set of legal reports in electronic format to tax authorities. Specific additional information is required to be provided in these reports. Oracle Financials for Latin America provides new and enhanced functionality to capture the additional required information.

The following new windows have been introduced to support SPED:

Electronic Invoice Attributes

Electronic Invoice Status History

The following existing windows have been enhanced:

Tax Codes and Rates

Supplier Sites

Customer Sites

Transaction Sources

Order Management Deliveries

Order Management Carriers

Transaction Types

Inventory Master Items

Item Templates

Support for Electronic Invoice Integration

Per Brazilian tax law, account receivable invoices can only be billed to a customer after tax authority approval.

In this release, Oracle Financials for Latin America provides support for electronic invoice integration for tax authority approval. The tax authority approval status is used to control downstream business process such as invoice printing, collection, etc. for the receivables invoice. In order to prevent billing customers with an invalid document status, only receivable invoices with a status of Finalized or Contingency are processed. Invoices with a status of Sent, Error, Cancelled, Rejected and Obsolete are placed on hold until the electronic invoice status is updated to Finalized or Contingency.

This update has also been back-ported to the following release:

Release

Patch Number

My Oracle Support Knowledge Document

12.0

7000001:R12.JL.A

753705.1

– Electronic Invoice

Standards

876892.1

– Electronic Invoice

Integration Support

3.20.2.2. Japan: Asset Depreciation Enhancements for Japan Tax Reform Act of 2007

In order to stimulate and promote economic growth, The Ministry of Finance for Japan has announced new tax reforms. The reforms introduced new rules for calculating depreciation on fixed assets effective April 1, 2007.

Oracle Assets provides the following new features to support the new tax reforms:

New depreciation methods and rates for depreciable assets acquired on or after April 1, 2007

New rates are added to the Straight Line Method

250% Declining Balance Method

Extension of Depreciation feature for calculation of extended depreciation for eligible assets (depreciable asset acquired on or before March 31st, 2007 and depreciated up to earlier 95% limit)

Enhanced reporting for compliance

Enhanced Mass Changes feature by adding Salvage value and Final Depreciable limit parameters

This update has also been back-ported to the following releases:

Release

Patch Number

11.5.10

7427746

12.0

8706840:FA.A

3.20.2.3. United Kingdom: Reverse Charge VAT

On June 1, 2007, the new Reverse Charge VAT rule became effective in the United Kingdom. The Reverse Charge VAT involves inverting the tax liable party from the ‘Seller of Goods’ to the ‘Buyer of Goods’ under certain conditions for domestic transactions within the EU countries.

Oracle Financials now supports this new VAT regulation by identifying reverse charge VAT transactions and ensuring that appropriate tax rules are applied. A Reversed Charge Sales report is now available to list effected invoices. A standard message is printed on all reverse charge sales invoices.

This update has also been back-ported to 12.0 via Oracle Financials Release Update Pack 5. For additional information, please refer to My Oracle Support Knowledge Document

565898.1.

3.20.3. Release 12.1.2

3.20.3.1. Argentina: Turnover Tax Withholding/Perception Regimes

The Tax Authority of Buenos Aires province has determined through regulations DN 70/07 and DN 74/07, that tax rates for its Turnover Withholding and Turnover Perception regimes would be defined per individual contributors (i.e. taxpayer id), therefore modifying existing withholding and perception tax rate determination, which was a general rate applicable for all taxpayers.

Each Perception agent (i.e. seller) and Withholding agent (i.e. buyer) will be required to download from the tax authority’s website a monthly flat file with applicable tax rate information for each contributor (taxpayer id).

In this release, Oracle Financials for Latin America provides new and enhanced functionality to enable its customers to upload the government’s monthly data file and update the corresponding tax assignments per taxpayer id (i.e. Withholding rates for suppliers in Oracle Payables and Perception rates for customers in Oracle Receivables) and ultimately calculate proper withholding and perception taxes on Payments and Receivables transactions, thus complying with the current legal regulations.

The following functionality is provided:

Infrastructure and Guidelines to Setup and Upload Monthly Data File

Program to Validate Data prior to Data Upload

Program to Update Monthly Turnover Perception Tax Assignments per Taxpayer id (Receivables)

Program to Update Monthly Turnover Withholding Assignments per Taxpayer id (Payables)

Program to Update Withholding Rates for Unpaid Invoices (Payables)

Report to List Uploaded Data for Verification Purposes

The following windows have been enhanced:

Withholding Taxes

Supplier Withholding Applicability

The following concurrent program has been introduced:

Argentine Turnover Tax Data Upload Verification Report

The following reports can be generated based on parameters entered in the above concurrent program:

Argentine Turnover Temporary Data Upload Verification Report

Argentine Turnover Data Upload Validation Report

Argentine Turnover Final Data Upload Verification Report

This update has also been back-ported to the following releases:

Release

Patch Number

My Oracle Support Knowledge Document

11.5.10

7368540

733928.1

12.0

7685123:R12.JL.A

778917.1

12.1.1/12.1.2

8427989:R12.JL.B

878707.1

3.20.3.2. Brazil: Federal SPED Regulation - Accounting SPED

The Brazilian Accounting SPED, also known as ‘Escrituração Contabil Digital – ECD’, requires companies to submit their accounting data to the Federal Tax Authority on a monthly or yearly basis in a flat file format.

In this release, Oracle Financials for Latin America provides new and enhanced functionality to capture the required information, extract and format electronic accounting books.

Oracle supports monthly generation of the following bookkeeping types:

Bookkeeping Type G

Bookkeeping Type G is applicable when the company stores detailed accounting in Oracle General Ledger. It is the preferred bookkeeping type by Federal Tax Authority.

Bookkeeping Type R

Bookkeeping Type R is applicable when a company summarizes accounting data in Oracle General Ledger and keeps the accounting details in the sub-ledgers.

Bookkeeping Type A

Bookkeeping Type A contains the detailed accounting for Bookkeeping Types R or B. Users can drill down and retrieve detailed accounting information from AP and AR sub-ledgers.

Bookkeeping Type B

Bookkeeping Type B is specific for Financial Institutions such as Banks. It requires additional registers to be reported. This book may also have an auxiliary bookkeeping Type A associated to it.

New User Interface screens introduced to support Accounting SPED are:

Participants

Participant Relationships

Bookkeeping Types

The following pages have been enhanced to capture new data elements:

Legal Entities

Establishments

Legal and Tax Registrations

Contacts Information

The following programs have been introduced:

Brazilian Accounting SPED Data Extract Program

Brazilian Accounting SPED Text File Generation Program

Brazilian Accounting SPED Financial Statements Data Extraction

This update has also been back-ported to the following releases:

Release

Patch Number

My Oracle Support Knowledge Document

11.5.10

8319193

786498.1

12.0

8824610:R12.JL.A

878922.1

12.1.1/12.1.2

8692514:R12.JL.B

878922.1

3.20.3.3. China: Golden Tax Adapter Enhancements

In this release the EBS Golden Tax Adaptor functionality has been expanded to support the merging of multiple Golden Tax (VAT) Invoices, capturing bank and customer information in simplified Chinese for use in the Golden Tax (VAT) invoices, and the ability to support sales discounts on Golden Tax (VAT) invoices.

1. Merge multiple Golden Tax (VAT) invoices

Users can consolidate multiple invoices for the same customer into a single VAT invoice within limits as defined in the System Options.

2. Capturing bank and customer information in simplified Chinese

Users can use an Alternate Name to enter, capture and print the customer and bank information in Chinese on issued VAT invoices.

3. Sales discount

Users can export sales discount lines from the EBS Golden Tax Adaptor into the Golden Tax system. Users can import credit memo data with merged discount amounts back into Golden Tax Adaptor.

3.20.3.4. Italy: Annual VAT Extract

The Annual VAT declaration is a legal requirement in Italy. All Italian legal entities must complete the Annual VAT declaration according to the specifications of the Italian fiscal authority.

This release provides a standard extract which contains selected VAT details to assist Italian customers to submit their Annual VAT declaration in their functional currency as

well as non-Italian customers to reconcile their VAT registers for their statutory reporting needs.

3.20.3.5.

Italy: Annual Withholding Extract

The Annual Withholding declaration is a legal requirement in Italy. All legal entities must complete the fiscal template according to the specifications of the Italian fiscal authority.

This release provides a report that may be printed annually for each legal entity. The report lists the withholding tax and the tax identification information related to partially and fully paid payables transactions. This report is consistent with the information listed on Italian Withholding Tax Letters.

3.20.3.6. Japan: Enhanced Support for Tax Reform 2007/2008

Japan’s Ministry of Finance announced new tax reforms for the calculation and reporting of fixed asset depreciation.

Oracle Assets provides the following new features to support the Japanese tax reform legislation:

1. Enhanced Legacy Data Migration for Japan Tax Reform

Prior 2007 Japan Tax Reform product enhancements allowed new assets added into the system to be assigned the new depreciation methods. However, customers also need the ability to easily assign existing assets to the new mandated methods.

The following functionality enables users to migrate legacy assets:

The Asset Workbench now allows addition of assets already in Extended Depreciation and displays additional asset information for these assets.

Mass Additions now permits the addition of existing assets in Extended Depreciation and also displays additional asset information.

The Asset Integrator (Oracle Web ADI) has been modified to enable the addition of existing assets in Extended Depreciation.

The Extended Adjustments program has been modified to support migrated depreciating assets in Extended Depreciation.

2. Enhanced What-If Depreciation Analysis for Japan Tax Reform

The What-If Depreciation program has been enhanced to use 2007 Japan Tax Reform methods:

New JP 250 DB methods introduced with the Japan Tax Reform.

The new JP STL EXTD method for assets currently depreciating under Extended Depreciation.

3. Depreciable Assets Tax Report for Japan

Previously, users of the Japan Depreciable Assets Tax Report could only register and provide descriptive information for a single company. The report has now been enhanced to handle multiple companies.

The Japan Depreciable Assets Tax Report contains the following modifications:

Users can specify information for multiple companies linked to specified asset book(s).

Additional reference information is enterable in the report.

The report layout format conforms to the legal standard.

This update has also been back-ported to 12.1.1 via the standalone patch:

8706842:R12.FA.B.

3.20.3.7. Spain: VAT Legislation: Modelo 340 Informative Declaration

The new Modelo 340 Informative Declaration includes Issued Invoices, Received Invoices, Investments and Certain Intra EU transactions. This new 2009 declaration accompanies the VAT Settlement ("Liquidación del IVA") and does not replace an existing declaration ("Modelo"). This settlement can be performed monthly or annually.

In this release, a new file is available in accordance to the new legislation.

This update has also been back-ported to the following releases:

Release

Patch Number

11.5.10

8535502

12.0

8635531:R12.JE.A

12.1.1/12.1.2

8635531:R12.JE.B

3.20.3.8. Spain: VAT Legislation: Modelo 347 Domestic Transactions Turnover Report

Changes

New guidelines include changes to the types of companies that are required to submit Modelo 347. These guidelines were issued on December 30th, 2008, and are applicable as of January 1st, 2009: Order EHA/3787/2008, of 29 of December, (BOE 30-diciembre- 2008). A series of updates and additional fields have been applied to the layout of Modelo 347 report in accordance to the legislative requirements.

This update has also been back-ported to the following releases:

Release

Patch Number

11.5.10

7564728

12.0

8635531:R12.JE.A

12.1.1/12.1.2

8635531:R12.JE.B

3.20.3.9. Spain: VAT Legislation: Modelo 415 Canary Island Turnover Report Changes

Companies operating in the Canary Islands and subject to the Canary Islands Tax Regime are required to submit an IGIC Modelo 415 file. A series of updates and additional fields have been applied to the layout of Modelo 415 in accordance of the new legislative requirements.

This update has also been back-ported to the following releases:

Release

Patch Number

11.5.10

8294328

12.0

8635531:R12.JE.A

12.1.1/12.1.2

8635531:R12.JE.B

3.20.3.10. Spain: Changes to Taxpayer ID Validation

In 2008, Spain issued new legal guidelines to allow Taxpayer ID’s to begin with alphabet characters of “Y” and “Z” and specific logic to derive the correct format. Prior to this change, Spanish Taxpayer ID’s were legally allowed to only begin with alphabet characters up to “X”. This release supports the revised Spanish Taxpayer ID validation.

For additional information, please refer to My Oracle Support Knowledge Document:

759473.1, 760262.

3.20.3.11. United Kingdom: Support for Revaluations and Impairments per Statement

of Recommended Practice for United Kingdom Local Authority Accounting

The Joint Committee for CIPFA/LASAAC published “A Statement of Recommended

Accounting Practice (SORP) 2006”.

by UK Local Authorities are to be revalued starting from April 1, 2007.

The SORP recommends how fixed assets owned

Revaluation and impairment functionality in Oracle Assets now addresses the fixed asset revaluation requirements as per SORP.

Revaluation Reserve Accounting for – Net Book Value

Generating Depreciation Neutralizing Entries

Revaluation of Donated and Discounted Assets

Impairment Classification Types

Reason and Purpose Descriptions

Generating Impairment Loss Neutralizing Accounting Entries

Revaluations Directly Related to Prior Impairments

Generating Asset Decommission and Disposal Entries.

This update has also been back-ported to 12.1.1 via the standalone patch:

8706842:R12.FA.B.

3.20.3.12. U.S. Federal: New FACTS II Edit Checks and File Layout Changes

Closing Validation Edit 13 and Reclassification Edit 14 rules have been added as configuration options for FACTS II processing in accordance with Treasury FMS guidance. Additionally, the FACTS II Edit Check Detail Report has been modified to include the status and supporting detail for these edits.

This update has also been back-ported to the following releases:

Release

Patch Number

My Oracle Support Knowledge Document

Release

Patch Number

My Oracle Support Knowledge Document

11.5.10

9351322

875303.1

12.0

9351569.FV.A

12.1.1/12.1.2

9351569.FV.B

 

3.20.3.13. U.S. Federal: Enhanced Central Contractor Registration (CCR) Processing

CCR processing has been enhanced to process the BPN extract v4.07 files. These extracts contain unlimited Business Types, NAICS, SIC, PSC and FSC Codes, as well as NAICS exception and SBA Certification Data. The CCR Vendors pages have been updated to display this information.

3.20.3.14. Global: Support for Asset Impairment in Accordance with International

Accounting Standard 36

IAS 36 addresses financial accounting and reporting for impairment of assets. The provisions provide that assets should not be carried at more than their recoverable amounts. The Standard requires entities to carry out impairment tests for all their tangible and intangible assets, other than assets in certain specified categories (e.g. inventories, construction contract assets, financial assets and non-current assets classified as held for sale). IAS 36 requires companies to measure an asset's recoverable amount (the higher of the asset's or cash generating unit's fair value, less costs to sell, and its value in use) and compare it to the book value. Oracle Assets now calculates and generates asset impairments and the appropriate General Ledger journals in accordance with IAS 36 guidelines.

This update has also been back-ported to 12.1.1 via the standalone patch:

8706842:R12.FA.B.

3.20.3.15. Global: Year End Closing Process

Selective country legislators stipulate that the year-end closing journals and year- beginning opening journals are to be created using the net balance of each account.

The Close Process: Create Balance Sheet Closing Journals program and Close Process:

Create Income Statement Closing Journals program in General Ledger have been enhanced to support this legal requirement. Using the new Net Closing Balance Journal option in the Accounting Setup Manager, users can now generate the appropriate year- end closing journals and year-beginning opening journals.

3.20.4. Release 12.1.3

3.20.4.1. Argentina: Support for Argentina Simplified Regime (Monotributo)

The Argentine Fiscal Authority (Resolution 2616), introduced a new Withholding Regime for Income Tax and VAT application to Simplified Regime Contributors (a.k.a. Monotributista). Effective January 1, 2010, the new regime is effective on any payment made to a Monotributista that has reached an annual threshold-billing amount as pre- defined by the government.

The extended withholding solution for Argentine has been enhanced to address these changes. Suppliers can now be defined using withholding types and rates applicable to simplified regimes.

With these changes, users now can:

Identify suppliers who are Monotributistas

Verify supplier’s billing information against fiscal authority thresholds

Analyze information through the Monotributistas Billing vs. Threshold Verification Report

Automatically enable Simplified Regime applicability to Monotributistas that meet the threshold.

This update has also been back-ported to the following releases:

Release

Patch Number

My Oracle Support Knowledge Document

11.5.10

8971151

 

12.0.5

9112951:R12.JL.A

987131.1

12.1.1/12.1.2

9112951:R12.JL.B

987131.1

3.20.4.2. Belgium: Annual VAT Report File Format v1.3

Effective from January 2010, the new v1.3 file format has replaced the current v1.2 file format of the Belgian Annual VAT Return File.

This update has also been back-ported to the following releases:

Release

Patch Number

11.5.10

9249589

12.0.5

9480859:R12.JE.A

12.1.1/12.1.2

9480859:R12.JE.B

3.20.4.3. Brazil: Support for Brazilian Electronic Collection Document Process (DDA)

Effective October 2009, Oracle Financials for Latin America introduced two new attributes in the Collection Document Window and in the Import Collection Documents program to support the Brazilian Authorized Direct Debit (DDA) system:

Collection Document Barcode: The Collection Document Barcode is required for the Electronic File Transfer. This mandatory record speeds up the data entry of manually collected documents and is now a required field in the Standard Collection Document.

Electronic Collection Document Flag: The Electronic Format (Y/N) flag identifies if the respective collection document is electronic (Y) or standard (N).

This update has also been back-ported to the following releases:

Release

Patch Number

My Oracle Support Knowledge Document

11.5.10

8802352

1071872.1

12.0.5

9319746:R12.JL.A

987749.1

12.1.1/12.1.2

9319746:R12.JL.B

987749.1

3.20.4.4.

China: Support for Version 2 of the China Accounting Software Data

Interface Standard

The China National Audit Office (CNAO) has defined a new version of their accounting auditing filing standard, known as the China Accounting Software Data Interface Standard. The new standard requires a number of XML-based reports, using data primarily from the General Ledger, Payables, Receivables, Assets, and Payroll modules. It is currently required for state-owned enterprises and public sector organizations.

3.20.4.5. India: Enhanced Value Added Tax (VAT) Functionality to Support Flexible

Recovery Schedule for India

Oracle Financials for India now provides the flexibility to use VAT recovery schedules and percentages to derive the tax installments and dates to claim or recover VAT on capital goods.

3.20.4.6. India: Value Added Tax (VAT) Statutory Accounting and Reporting for Non-

Shippable Items

Users can now have the ability to generate Value Added Tax Invoice Numbers, perform VAT Repository updates, and account for VAT taxes for customer billable non- shippable items on sales orders.

3.20.4.7. Israel: Israel VAT Report Enhancement

Effective January 2010, new legislation was introduced affecting companies issuing periodic VAT declarations in Israel. The legislative changes include:

Enhanced tax reporting boxes for declared input and output taxes

New electronic flat file format declaration related to 835

Aggregated reporting of taxable sales transactions below the official published limits

Monthly percentage or amounts limits for tax reclaimed on Petty Cash transactions

Mandatory declaration of export trade transactions (Rshimon Export)

The EMEA VAT Reporting Setup has been updated to capture monthly aggregation and declaration limits for Israel.

The following Israeli reports have been enhanced to incorporate the legislative changes:

Israeli VAT AR Detail Report

Israeli VAT AP Detail Report

Israeli VAT Summary Declaration to Tax Authorities

Israeli VAT File Generation Related to 835

This update has also been back-ported to the following releases:

Release

Patch Number

My Oracle Support Knowledge Document

12.0.6

9241039:R12.JE.A

981126.1

12.1.1/12.1.2

9241039:R12.JE.B

981126.1

3.20.4.8. Israeli: Withholding Tax File – 856

Legislative amendments to the Income Tax Ordinance require updates to the ‘Withholding Tax File – 856’. These amendments impact the existing ‘Israeli Withholding Tax File to Tax Authority’ report.

In summary, the amendments are as follows:

The existing Row 60 has been updated. New fields ‘Tax Year’, ‘Supplier Type’ and ‘Explanation for the Tax File in IRS’ have been added to this row.

The existing Row 70 has been updated. New fields ‘Foreign Suppliers Total Payments Paid by Bank’ and ‘Foreign Suppliers Total Withhold Amounts Paid by Bank’ have been added to this row. Positions 53 to 101 are filled out with spaces.

A new row (Row 80) has been added to the file. This row has 216 positions and is composed of 12 lines, one line per each month of the year.

The following data is also generated as part of row 80:

IRS Deduction File Number, Reporting Type Code, Tax Year, Period, Number of Reported Suppliers, Total Payments, Total Withholding Tax, 155 spaces and the constant ‘80’.

This update has also been back-ported to the following releases:

Release

Patch Number

12.0.5

9253606:R12.JE.A

12.1.1/12.1.2

9253606:R12.JE.B

3.20.4.9. U.S. Federal: Extract File Changes for Central Contractor Registration

(CCR)

CCR processing has been enhanced to process the BPN extract v4.09 files. The extracts contain additional NAICS information, as well as the Excluded Parties List System (EPLS) status. The CCRXML request version number has been updated to 2.10. The CCR Vendors pages have also been updated to display the additional information.

3.20.4.10. U.S. Federal: Regulatory Updates to Statement of Budgetary Resources

The setup and concurrent process for the following Federal Financial Statements have been modified to align with OMB Circular A-136 Revised (dated June 10, 2009) as well as USSGL Fiscal Year 2010 crosswalk attributes:

Statement of Budgetary Resources

Statement of Changes in Net Position.

3.20.4.11.

U.S. Federal: Regulatory Updates to SF-133 Report

The setup and concurrent process for the SF 133, Report on Budget Execution, has been modified to align with OMB Circular A-136 Revised (dated June 10, 2009) as well as USSGL Fiscal Year 2010 crosswalk attributes.

This update has also been back-ported to the following releases:

Release

Patch Number

My Oracle Support Knowledge Document

11.5.10

9307464

979828.1

12.0

9162915:R12.FV.A

979828.1

12.1.1/12.1.2

9162915:R12.FV.B

979828.1

3.20.4.12. Global: European Community VAT Changes for 2010

Effective January 1, 2010, the European Union (EU) introduced changes related to Value Added Tax (VAT) to modernize and simplify the rules for cross-border supply services and tax recovery. Business-to-business supply of services will now no longer be taxed where the supplier is located but will be taxed where the customer is situated. The changes also introduced new reporting requirements.

Oracle Financials has been enhanced to address the new VAT changes by providing the following features:

Identify the intra EU service transaction lines and display them on the European Sales Listing report

Print standard legal messages on sales invoices.

This update has also been back-ported to the following releases:

Release

Patch Number

My Oracle Support Knowledge Document

12.0

9337544:R12.ZX.A

974979.1

9123675:R12.BPA.A

1107453.1

12.1

9337544:R12.ZX.B

974979.1

9123675:R12.BPA.B

1107453.1

4. New and Changed Features in Real Estate Management

4.1. Oracle Property Manager

4.1.1. Overview

Oracle Property Manager is the cornerstone of the real estate management solution provided by Oracle. Whether you are a corporate, commercial, or retail operation, Oracle Property Manager provides a comprehensive solution for managing your real estate portfolio efficiently. Oracle Property Manager streamlines space management and lease administration, and maximizes the value of your real estate by:

Reducing costs and identifying new revenue opportunities

Minimizing contractual and financial risk

Providing data transparency

4.1.2. Release 12.1.1 Leasing Features

4.1.2.1. New Lease Statuses

Two new statuses have been introduced for leases. The new statuses are ‘Lease Ordered’ and ‘Signed’. These statuses are available when the lease approval status is ‘Draft.’ When a lease has a status of Lease Ordered or Signed, schedules and items are created for any one-time payments. This allows users to create invoices or make payments from the lease, for terms with frequency of one-time only, before the lease is finalized. Users can use this new functionality for deposits or other payments that may be required before a lease is finalized.

4.1.2.2. Lease Extension Enhancements

When the status is changed to Month-to-Month or Holdover and an extension date entered, the following things will now be done automatically:

Recurring payment terms that end on the lease termination date will be extended to the new extension date.

Users can choose to have variable rent and rent increase agreements extended. This is described further in the sections on Variable Rent and Rent Increase enhancements.

Extensions of terms and agreements can be rolled forward month by month using a new concurrent process.

The system extends existing normalized payment terms differently depending on the lease status. If the user changes the status from Active to Month-to-Month or Holdover, the system extends a normalized payment term ending on the old lease termination or extension date by adding a new non-normalized term rather than by changing the end date of the existing term. If the lease is later placed back in Active status, the term will be extended by addition of a new normalized term beginning on the amendment commencement date.

4.1.2.3.

Tenancy Extension and Contraction

When the user extends or contracts a lease, tenancy records (records on the locations tab

of

the lease) will be extended or contracted as well, as appropriate.

4.1.2.4.

Assignment Occupancy Percent Determined by Attribute on Tenancy

A new field on the lease locations (tenancy) tab, Assigned % Area: determines the %

Area value on the Customer Assignment, that is, it will determine what percentage of the

location area is occupied by that customer. The default will be 100%

4.1.2.5. Multiple Schedules for Same Schedule Day

Oracle Property Manager can create a new draft schedule, if needed, for a date with an existing approved schedule. This means you can create a new term with the desired schedule day in all cases

4.1.2.6. Prorating the Billing/Payment Amount based on a New Start Day Field

A new field has been added to the Lease form to capture the Year Start Date for

Prorating. Based on this field, the Schedule Start Date is determined considering the period in which the Term Start Date falls into.

4.1.3. Release 12.1.1 Variable Rent Features

4.1.3.1. Breakpoint Flexibility

Complete flexibility in setting up line items and breakpoint definitions has been introduced. With this feature, users can:

Set up complex agreements with changes to breakpoints, rates, breakpoint types, line items, etc., occurring on any date, any number of times over the span of the lease.

Enter line item and breakpoint details with any start and end date, not restricted to sales year start and end dates.

4.1.3.2. Updating Breakpoints

Users can now change breakpoint definitions at any time, regardless of whether variable rent has been calculated and approved. To respond to amendments or to correct data, users can change most parts of a variable rent agreement. If the changes affect rent that has been approved, the application will create adjusting terms.

4.1.3.3. Natural Breakpoint Enhancements

When the terms that form the basis for a natural breakpoint change, whether because of a rent increase or because a user added or ended a term, the system now automatically recalculates the natural breakpoints. The user can recalculate the variable rent; and if the changes affect rent that has been approved, the application will create adjusting terms.

Users now select terms to form the basis for natural breakpoints using a new attribute on the term, allowing complete control over which terms are to be included.

Users can now have rent increases, selectively, included in the natural breakpoint basis as the increases are assessed.

4.1.3.4.

Early Termination of Agreement or Lease

The user can now end variable rent agreements as of any date, either directly or by terminating a lease. The system will perform any recalculations necessary if variable rent has already been paid for affected periods and will create adjusting and/or reversing terms.

4.1.3.5. Extension of Variable Rent Agreements

The user can now extend the length of variable rent agreements, or have the system extend the agreement automatically when a lease is extended. The user also chooses whether to have the system automatically extend the latest breakpoint definitions when the agreement is extended or to manually enter the breakpoint definition detail for the extension period.

4.1.3.6. New Calculation Methods

Two new calculation methods have been introduced for Variable Rent.

Year-to-Date. The system determines overage by comparing the cumulative breakpoint with the cumulative sales (or other volume).

True Up. The system calculates variable rent periodically through the year with a non-cumulative method and then does a True Up calculation at the end of the year (or other appropriate period).

4.1.3.7. New Partial Year Calculation Methods

Several new methods (in addition to the existing Standard Proration) have been introduced to calculate variable rent in partial years at the beginning or end of an agreement.

First Year. A partial first year variable rent is calculated based on the first 12 months of sales, effectively using some sales from the second year as proxy for the missing months in the first year. The resulting rent is prorated based on the actual length of the first partial year.

Last Year. This is the equivalent of the First Year method, applied to partial last years.

First Year / Last Year. If this Partial Year Method is selected, both the First Year and Last Year methods will be applied.

Combined Year with Breakpoint Proration. The first partial year is combined with the second year. For cumulative and year-to-date methods, breakpoints and volumes continue to accumulate for more than 12 months. The breakpoints are effectively ‘annualized’ because the period of breakpoint accumulation matches the period of volume accumulation.

Combined Year without Breakpoint Proration. The first partial year is combined with the second year. A blended annual breakpoint is calculated for the combined period, converted to a 12-month value. This is used as the basis for

breakpoints for all methods. Since the combined year is longer than 12 months, and the sales are accumulated for that longer period, the breakpoint accumulation is not matched to the volume accumulation and the breakpoint is not, in effect, annualized.

No Proration. The breakpoints are used as entered, without proration. There is no interaction or combination between values in the first partial year and the second year.

4.1.3.8. Month-to-Month Roll Forward of Variable Rent Agreements

If a lease is in Month-to-Month status, the user can choose to automatically extend the variable rent agreement with each monthly roll-forward of the Month-to-Month extension.

4.1.3.9. Enhancement to Cumulative Calculation Method

When the overage rate for calculation of variable rent changes mid-year, accumulation of volume recommences. Breakpoints are prorated to the length of the ‘cumulative cycle’ determined by sales year end dates or rate changes.

4.1.3.10. Allowances and Abatements

There are a number of enhancements related to allowances and abatements. Users can:

Create multiple allowances with effective dates.

Specify whether allowances or abatements are to be applied first.

Select terms for recurring abatement at the time that agreements are created.

Roll forward recurring abatement selections automatically and have the system apply abatements automatically as part of the variable rent calculation process.

Enter amounts for ‘Fixed Abatement.’ This is a new type of abatement. A fixed abatement is an amount entered by the user to be applied as abatement for each invoice period, much like the system applies the amount of recurring abatement terms each invoice period.

4.1.3.11. Carry Forward of Excess Abatement as Negative Rent

Users can now control through an agreement parameter whether excess abatement amounts are treated as negative rent.

4.1.3.12. Constraints

Users can now set start and end dates for constraints for the life of the agreement rather than setting them up for each year.

4.1.3.13. Updating Volumes

Users can now update previously entered volume amounts through the Variable Rent Gateway, where previously the only way to do an adjustment was by entering an additional volume record (with a positive or negative adjusting amount).

4.1.3.14.

Additional Frequency Attribute

The attribute called ‘Reporting Frequency’ in previous functionality determined two different frequencies, which sometimes should have had different values. This attribute has been split into two attributes:

Calculation Frequency. The frequency with which variable rent is calculated. This was the primary purpose of the former ‘Reporting Frequency.’

Reporting Frequency. The frequency with which the tenant is required to report volumes. This frequency does not affect calculations but does affect the logic by which the Variable Rent Gateway creates default volume entry rows.

4.1.3.15. Streamlining of Adjustments

Users can now recalculate variable rent at any time, to accommodate for changed volume, breakpoints or other factors. The system will create adjusting terms if necessary. There is no longer a separate adjustment process.

4.1.3.16. Form Enhancements

There have been many enhancements to layouts and navigation, decreasing the number of screens and improving usability.

A number of multi-row views have been converted to folder blocks to allow for user configuration.

Drilldowns have been added between the invoice review screen and the line item review screen.

Multi-row views have been combined on a single screen with a master-detail relationship to reduce the number of screens and present information in a more intuitive layout.

4.1.3.17. Display of Calculation Results

Users can review in detail, on-screen, the calculation that resulted in the variable rent amount, regardless of which method is used for the agreement.

4.1.3.18. Variable Rent Templates

Users may select a variable rent template to populate many of the attributes of a variable rent agreement. This reduces data entry effort and error.

4.1.3.19. Term Template Enhancements

Users can now create, edit and save term templates from within the variable rent agreement. Now, users can maintain a relatively small number of generic term templates to use as the starting point for term detail defaults for variable rent agreements. The user will select a generic term template then, if necessary, make a copy with changes specific to the agreement.

4.1.3.20.

Processing by Property

Property has been added as a parameter to the concurrent process for calculation of variable rent so that users can now select agreements by property for batch calculation.

4.1.3.21. Improved Variable Rent Report

An improved report has been introduced for reporting calculated variable rent.

4.1.4. Release 12.1.1 Index Rent Features

4.1.4.1. Early Termination of Rent Increase Agreements

The user can now end rent increase agreements as of any date, either directly or by terminating a lease. The system will create adjusting and/or reversing items as necessary.

4.1.4.2. Extension of Rent Increase Agreements

The user can now extend the length of rent increase agreements, or have the system extend the agreement automatically when a lease is extended.

4.1.4.3. Month-to-Month Roll Forward

If a lease is in Month-to-Month status, the user can choose to automatically extend the

rent increase agreement with each monthly roll-forward of the Month-to-Month extension.

4.1.4.4. Index Multiplier

Users can now specify a multiplier to be applied for rent increases based on an index value. The amount specified is multiplied times the calculated change in the index amount and the rent is changed by the resulting value rather than by the actual index change percentage.

4.1.4.5. Proration

The system will now prorate constraints on rent increase for partial years.

4.1.4.6. Term Length

One compounding rent increase calculation method has been changed so that rent increase terms are created only for the length of the assessment period rather than to the end of the lease. This is appropriate for this method so that users now do not need to manually change the term lengths.

4.1.4.7. Include/Exclude Option

A system option has been introduced that controls how terms are selected to form the

basis for rent increases. With previous functionality, all terms of the selected type were selected by default for inclusion and users would deselect terms as appropriate. An organization now can choose whether terms are included or excluded by default. Users will still have complete control at the individual agreement level.

4.1.4.8.

Recurring Backbill Terms

An option has been introduced that controls whether backbill terms are created as one- time terms or as recurring terms. If they are created as recurring terms, the transaction date for all resulting schedules is set to the same date, which is the date that the term was approved.

4.1.4.9. Rent Increase Report

An improved report has been introduced for reporting calculated rent increases.

4.1.5. Release 12.1.1 Operating Expenses Features

This major new feature allows tenants to record in detail the lease clauses governing payment of operating expense reimbursements or recoveries (also known as common area maintenance expenses, etc.) to landlords. It also supports creating and changing estimated payment terms and periodic reconciliations.

4.1.5.1. Create Operating Expense Agreement

Users can create an operating expense agreement for any lease clause governing the payment of rent based on landlord operating costs or common area maintenance costs. The agreement captures the key aspects of these agreements in a structured way that enables consistent recording of agreements across the portfolio and also supports the consistent and accurate reconciliation and ‘desktop audit’ of landlord reconciliation statements. Aspects of agreements that can be recorded in a structured way include:

All common ways of determining the pro rata basis for expense recovery, such as occupied area with floor

Multiple pro rata bases within a single agreement

Administration fees and anchor contributions

Rules governing recovery of different expense groups or pools, within a single agreement, such as whether a type of expense is subject to fees or cap

All common methods for calculating caps and minimums

Different reconciliation frequencies

Whether rent is subject to tax

Stop amounts

How reconciliation credits can be applied

Standard expense group naming, for cross-portfolio comparisons

Critical date rules, such as audit period and statement and payment due dates

Extensive notes, by category

4.1.5.2.

Enter and Maintain Estimated Payment Terms

If the agreement requires the tenant to make estimated payments based on landlord budgets, the user can create the payment term through the Operating Expense Agreement. Estimated payment amounts are often adjusted by landlords annually or at other intervals. The user can enter new amounts through the Agreement and the system will create the appropriate term, including a catch-up term if needed. A history of the changing amount is thus captured and displayed, with percent change.

4.1.5.3. Reconciliation

Reconciliation is created for each agreement for each reconciliation period. The user can record information from the landlord reconciliation statement and use the reconciliation screens as a ‘workbench’ for doing a desktop audit of the reconciliation statement. Features include:

Key entry, from the landlord reconciliation statement, of information not available to the user from other sources, such as actual landlord expenses.

o Optional entry of the same items, in an ‘Expected’ column, if the user has information that conflicts with the values presented by the landlord.

Presentation by the system of information that is known based on the Operating Expense Agreement, previous payments, and prior reconciliations, such as calculated cap amount, agreement fee percentage and amount already paid as estimated payments.

o Optional entry of the same items in the ‘Statement’ column, if the amounts on the landlord statement are not the same as expected.

Detailed presentation of the operating expense obligation calculation, in side-by- side layout, showing the values from the landlord statement next to the values expected by the user. The calculation includes caps, fees, contributions, occupancy adjustments and stops, pro rata share calculation, and prior payment amounts.

Presentations of the percent change over the prior period for each expense group, the total landlord expense, and the tenant share of expenses.

Printable version of the detailed reconciliation analysis with side-by-side comparison.

Simple creation of reconciliation payment term based on the bottom line of the reconciliation analysis, or simply the payment due amount on the landlord reconciliation statement.

Flexible expense year dates, or reconciliation period dates, so that reconciliations can be done at irregular intervals if needed.

Reconciliation notes and direct access to notes related to the agreement and to prior reconciliations.

Maintenance of critical dates specific to each reconciliation, such as audit period end date.

Tracking of reconciliation and audit status, and users responsible for each.

Preservation of prior versions of a single reconciliation.

4.1.5.4. Operating Expense Agreement Dashboard

A dashboard presents agreements, reconciliations, and related payment terms that are likely to need attention, based on user-configurable selection criteria. The dashboard also has advanced query capability for searching for agreements, reconciliations and/or payment terms.

Users can select existing objects for view or update, or can initiate creation of new agreements, reconciliations or payment terms from the dashboard.