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E-Business Suite R12 Financials Upgrade Impacts for Immersion Training, September 2006
Amy Andrews Director, Applications Development

Agenda
R12 Architecture Overview & Upgrade Premise Upgrade Impacts and Considerations
TCA Legal Entity E-Business Tax Ledger Multi-Org Access Subledger Accounting Banks Payments Advanced Global Intercompany Payables, Receivables, Assets

Deciding to Upgrade

You asked us: Simplify & Standardize

Work Globally, to be more competitive
Think Globally, to make the right decisions Manage Globally, to lower cost and increase performance
A$+$
Easy Reporting Transparent Audit, Reconciliation & Drilldown Corp. Compliance US GAAP / IAS-IFRS Corp COA Corp Calendar Joint Compliance US GAAP / IAS-IFRS Corp COA Corp Calendar Parent Compliance US GAAP / IAS-IFRS Corp COA Corp Calendar National Compliance Local Regulation National COA Local Calendar

Financial Data for Management - and Compliant

Analytics

+$

Comprehensive and compliant processing

Controlled Transaction Entry

Global Financial Architecture

6 Major Initiatives
1. 2. Ledger and Ledger Sets Multi-Org Access Control Subledger Accounting Tax Engine Intercompany Bank Model
Multi-Org Access Control
Dr Cr

General Ledger Sets Ledger & Ledger

Subledger Accounting (SLA)

3. 4. 5. 6.

Tax Engine

Inter Company

Bank Model

Inventory

Receivables Payables

Projects

Work in Process

Purchasing

What the Architecture Gets You

Work Globally
Global Order Desk Global Procurement Global Billing Global Dunning
Release 12 Subsidiary LEs.

Company

Company

Company

account for themselves in Ledgers, and

Think Globally
Global Ledger Sets worldwide insight Global Reporting

Ledger Set

manage their subledger data in Operating Units

Multi-Org Access Control

Manage Globally
Global Accounting Rules Global Set-up Global Integration

Inventory

Receivables Payables

Projects

Work in Process

Purchasing

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Data Management w/TCA

Data Management with TCA

Leveraging centralized data model
Global Tax Payments

Payables Purchasing

Geographies

Suppliers

Party Information

Cash Management

Banks and Branches

Trading Community Architecture

Oracle Fusion Middleware

ERP

CRM

3rd Party

Data Management with TCA

TCA Party base for
Legal Entities and Establishments Suppliers, Customers, Students Banks and Bank Branches Intercompany Parties (is this the right term?)

TCA Relationship Model

Parent Suppliers for subsidiaries or franchises Intercompany Parties mapped to Legal Entities Inter/Intracompany trading partners (customers/suppliers)

TCA Geography Model

Simple eBTax rules Group countries Compound rates for state, county, city

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Legal Entity

Legal Entity
A Legal Entity is an entity identified through a registration with a Legal authority Legal Entities have the right to
Own property (assets, inventory, receivable, other LEs) Trade (borrow, sell, buy, incur expenses, employ)

And the responsibility to

Repay debt (liabilities, equity) Pay Taxes Account for themselves (legal reports, audits)

Legal Entity
New Legal Entity (XLE) Data Model
Common Framework facilitates compliance Identification information Address information Contacts Establishments & registration numbers TCA party base

Migration of 11i HR Organizations

GRE/LEs migrated as Legal Entities and Main Establishments OUs (and inventory orgs) associated to the GRE/LE migrated as Establishments TCA Parties for all!

What if you modeled LEs as BSVs, not Orgs?

No upgrade of BSV representation to LEs Payables Reporting Entities migrated

Legal Entity
Legal Entity Configurator

Legal Entity
HR Org Definition, Country Information 11i HR Org Location
LEs country derived based on country of location associated with OU in HR Orgs Where Used during R12 Upgrade? eBTax - to determine appropriate regime(s) for tax determination eBTax to name upgraded 11i location-based taxes GL upgrade Bank upgrade

Legal Entity
Migration of 11i HR Organizations

Country of OU

GRE/LE

Legal Entity
Stamped on Transactions Default Legal Context
DLC specified for an OU Transactions entered for OU OU ties to LE through GLs Accounting Setup flow

Legal Entity stamped on transactions during upgrade

Payables Receivables

Used for
eBTax 1st party LE determination Statutory reporting Funds disbursement

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EBTax

E-Business Tax
New Tax Data Model
Common Framework facilitates compliance Tax Repository, Tax Reporting Leger and XMLP Reporting Integration with 3rd party content providers No more Global Descriptive Flexfields for tax data New fields for Customer, invoice, invoice lines New fields for Supplier, invoice, invoice

More accurate tax calculations than picking tax code Configuration by Tax Manager, not IT Tax Simulator

E-Business Tax
Transactions

Purchasing Parties
Single Interface for Transactions

Payables

Places Products
Determine Applicable Regimes Taxes

Tax Status & Rate

Taxable Basis

Calculate Tax Amount

Sales Orders

Processes

Transparent Integration with Tax Partner Services

Receivables

Tax Transactions

Taxes, Rules

eBTax, Uptake by Product

Transaction Taxes for Procure to Pay and Order to Cash
Exceptions: Latin Tax Engine Withholding Tax Internet Expenses; 11i style only General Ledger Tax Calculation; 11i style only

Replaces:
Global Tax Engine Automatic Tax Calculation Brazilian AP/PO General Ledger Automatic Tax Calculation

eBTax, Transition Options

11i Style
Tax code on transaction drives tax calculation

12 Style
Use eBTax rules for tax determination based on facts of the transaction Opportunity for single source tax rules

Phased uptake encouraged

Layer rules on top of 11i style base For example: set up rules for VAT recovery so system can determine domestic vs. foreign transactions for you Set up rules for USE tax

eBTax, Upgrade Impacts

11i Style, Tax Codes Preserved Upgrade of 11i style Tax Code
Tax Code upgraded to Tax Classification Code, Rate and direct rate determination rule AP and PO to input tax classification codes AR and PA as output tax classification codes Migrated in the context of eBTax setup Each OU becomes a Party Each Country becomes a Regime

Consider: standardizing tax codes and their use before upgrade

eBTax, Upgrade Impacts

Naming Conventions Upgrade of 11i Tax Code to R12 Tax Classification and Tax Rate
Tax Classification Code: Take 11i tax code, remove numeric values e.g. VAT10 becomes VAT Tax Rate: Take 11i tax code and use that to name the R12 tax rate (e.g. VAT10 becomes R12 rate VAT10 Tax Status is standard for all upgraded tax codes.

Demo or Screenshot: Look at a Tax Code from 11i and check out the tax classification and Regime to Rate Flow that will be migrated.

eBTax, Party Tax Profile

OU migrated to tax content owner in R12

Regime=Country
Party Tax Profile

Party = OU Party Specific Configuration

Tax Rules

eBTax, Upgrade Impacts

Regime-to-Rate Flow

eBTax, Upgrade Impacts

Tax Rules

eBTax, Upgrade Impacts

Party Tax Profile Party Tax Profile created to group tax attributes of 1st (you) and 3rd (customer/supplier) party legal entities.
rounding rules and levels tax classifications (defaults) set here registration information including multiple registrations! Exemptions & exceptions GDFs for party classification and reporting

Upgrade creates PTP for every Party and Party Site

eBTax
Party Tax Profile Conceptual Diagram Regime
Legal Entity Legal Entity Legal Entity Global Configuration Tax Rules

Party Specific Configuration

Tax Rules

3rd Party

eBTax, Upgrade Impacts

Party Tax Profile links to Regime & Configuration

eBTax, Upgrade Impacts

Regime links to Jurisdiction

eBTax, Upgrade Impacts

Party Tax Profile, upgraded defaults

eBTax, Upgrade Impacts

LE Establishment Transactional Tax Profile

eBTax, Upgrade Impacts

11i Tax Code Defaulting Hierarchy 11i defaulting hierarchy specified in AR/PO/AP and PA system options Upgraded to tax classification code defaulting hierarchy in Application Tax Options (for each OU and application product) Demo/Screenshot: Application Tax Options

eBTax, Upgrade Impacts

Application Tax Options

eBTax, Upgrade Impacts

11i Style Location-Based Tax in PA and AR Upgrade of 11i style Location-Based Tax in PA and AR
11i setup migrated to global configuration owner Upgrade creates: Tax Regime for ea Geography structure define at the AR System Options level Tax Jurisdictions for each Tax Zone within the context of a Regime and Tax Tax Rates Location values from Sales Tax Key Flexfield migrated into TCA Geography model

eBTax, Upgrade Impacts

Tax Transaction Upgrade R12 Tax Repository
Single repository of detailed tax lines AP, PO and AR Easy reconciliation between transaction, tax and accounting Tax distribution ids are stamped on ar/ap tax lines Tax distribution ids also on accounting transaction

eBTax, Upgrade Considerations

Transitioning to R12 eBTax Benefits
Minimize the need for detailed regional tax knowledge Simplify setup Minimize the risk associated with tax compliance

Automatic tax handling for

sales & use tax compound tax & surcharges deferred tax multiple tax registrations

Features of eBTax
date effectivity Simulator (on production)

eBTax, Upgrade Considerations

Transitioning to R12 eBTax Define eBTax rules at your own pace Gradually layer eBTax rules on top of 11i Style tax Identify opportunities
Classify your tax exceptions Item intended use place of supply Look for commonalities Define a classification rule to apply to many suppliers Group geography facts using TCA Geography model

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General Ledger

Ledger Sets
Global Information At A Glance
Ledger Set Share: Chart of Accounts Calendar
Ledger C

Ledger A French Rules Plan Comptable French Calendar

Ledger B US GAAP US COA US Calendar

US GAAP US COA US Calendar

USD

EUR

EUR

Ledger D US GAAP US COA US Calendar

Key benefits to many Ledgers in one set

Decision-driving business information always available Simpler processing and General Ledger management Data and definitions that can be shared and secured

AUD

Reporting Currency

Centralized Set-up
Accounting Setup Manager

Define Legal Entities & Associated Rules Ensure Complete & Accurate Setup via Online Checklist Define Multiple Ledgers for Rules & Currencies One Place to manage Your Global Accounting Rules, Currencies, Ledgers, And Ledger Sets

Set Accounting Rules for All EBS Apps

General Ledger
Accounting Setup Flow
Upgrade creates one accounting setup for each primary ledger, upgraded from SOB Accounting setup defines the accounting context for one or more legal entities or other business entities. Accounting Setup Components
Legal Entities: Legal entities can be manually assigned to a ledger and balancing segment values can optionally be mapped to legal entities to help you identify transactions by legal entity during transaction and journal processing. One Primary Ledger Operating Units Reporting Currencies: Multiple Reporting Currency (MRC) reporting sets of books become reporting currencies in Release 12 Secondary Ledgers

General Ledger
Accounting Setup Flow
Accounting Setup Components continued
Intracompany Balancing: Intercompany Accounts in Release 11i is renamed to Intracompany Balancing Rules, a feature provided by the new Advanced Global Intercompany System Intercompany Accounts: The Release 11i Global Intercompany System (GIS) will be replaced by Advanced Global Intercompany System (AGIS). The following Release 11i GIS features will be migrated to the corresponding features in AGIS: Subsidiaries, Intercompany Transaction Types, Intercompany Clearing Accounts, and AutoAccounting Rules

Before Upgrade: Run the Accounting Setup Manager Pre-Update Diagnosis Report to correct any issues After Upgrade: Run the Accounting Setup Manager Post-Update Diagnosis Report

General Ledger
Accounting Setup Flow

Legal Entities

Ledgers

Operating Units

General Ledger, Upgrade Impacts

Legal Entities and Ledgers
Recap
GRE/LEs migrated as Legal Entities and Main Establishments GRE/LEs link to SOB migrated to GL Accounting Setup

Sets of Books become Ledgers Accounting Setup created for each primary ledger, link maintained w/LEs and OUs
Default Legal Context assigned to OU All Balancing Segment Values (BSVs) will be available for data entry for the legal entity and ledger (same as R11i) Assign BSVs if You want to use Advanced Global Intercompany System You require data segregation within a Ledger for reporting purposes

General Ledger, Upgrade Impacts

Legal Entities and Ledgers The following will be upgraded to Secondary Ledgers:
Global Accounting Engine (AX) Posting Set of Books Secondary Set of Books defined in Accounts Payable (AP) if you use Combined Accrual & Cash Basis Accounting Fixed Assets If an Assets corporate book and tax book(s) are linked to the same General Ledger set of books, the set of books will be a primary ledger in Release 12 If an Assets corporate book is linked to a different set of books than its tax book(s), the set of books linked to the Assets corporate book will be a primary ledger and the set of books linked to a tax book will be a secondary ledger

General Ledger, Upgrade Impacts

AX
Upgrade migrates main sets of books to primary ledgers Upgrade migrates posting sets of books to secondary ledgers Special Case: If you have multiple main sets of books linked to one posting set of books, this configuration will upgrade to multiple primary ledgers that have the same secondary ledger assigned You can continue to use this configuration in Release 12, but you may not be able to use some new R12 features
For example, you will not be able to query accounting setups in Accounting Setup Manager by the secondary ledger; you will only be able to query accounting setups by the primary ledger. You will be able to view the secondary ledger in all of the accounting setups for the shared primary ledgers using Accounting Setup Manager.

General Ledger, Upgrade Impacts

MRC, primary ledgers with reporting currencies
Release 11i MRC primary sets of books and assigned reporting sets of books become primary ledgers with assigned reporting currencies in Release 12.
Default = subledger-level reporting currencies If MRC_DEBUG profile option is set to zero, reporting set of books will become a journal-level reporting currency Reporting Set of Books options migrated to Reporting Currency Options

Data Access Set that includes the primary ledger and all of its assigned reporting currencies will automatically be created during the upgrade 11i profile option GL/MRC: Post Reporting Journals Automatically obsolete in R12. All reporting currency journals will be automatically posted when posted in the source ledger.

General Ledger, Upgrade Impacts

MRC, reporting currency conversion levels Reporting currency conversion levels
Balance (use GL Translation) Journal (use GL Posting by setting conversion level; results like 11i Thin MRC) Subledger Journal (use SLA; results like 11i Full MRC)

SLA automatically handles the creation of the subledger journals for reporting currencies

General Ledger, Upgrade Impacts

MRC, reporting currency conversion levels

Default = No since SLA handles

General Ledger, Upgrade Impacts

MRC options
Reporting Currencies inherit the same ledger options as their source ledger Upgrade preserves 11i settings, but if you modify any of the ledger options for the source ledger after the upgrade, the settings on the reporting currency will automatically be changed to be in synch with the source ledger
Number of Future Enterable Periods Rounding Differences Account Reserve for Encumbrance Account Retained Earnings Account Intracompany Balancing Rules Enable Journal Entry Tax Journal Reversal Criteria Set

Require Budget Journals Period End Rate Type Period Average Rate Type Translation Adjustment Account Secondary Tracking Segment Descriptive Flexfields Suspense Account

General Ledger, Upgrade Impacts

MRC, Upgrade Scenarios
Suspense Posting
If enabled for the primary set of books and not enabled in the reporting set of books in Release 11i, then in R12, the reporting currency will have suspense posting enabled and use the same suspense account as the primary ledger. If not enabled for the primary set of books but enabled in the reporting set of books in Release 11i, then in R12, the reporting currency will also not have suspense posting enabled to be in synch with its source ledger.

Average Balances or Average Balance Consolidation

In 11i, you could set these options for the primary set of books independently of the reporting set of books. In Release 12, users can only set these options for the ledger and the reporting currency will inherit the attribute from its source ledger. For upgrade cases, Oracle will preserve the Release 11i configurations.

General Ledger, Upgrade Impacts

MRC, Upgrade Scenarios If you currently have multiple primary sets of books linked to one reporting set of books in Release 11i, this configuration will be upgraded to multiple primary ledgers that share the same reporting currency.
Not a recommended configuration You will not be able to use some of the new Release 12 features using this configuration Reporting currency will synchronize its settings to be in synch with the primary ledger that was most recently updated Be aware that users who had access to the reporting set of books in Release 11i will have access to all of the reporting currencies for a single primary ledger. In addition, users who had access to the primary ledger will now have access to the reporting currency as well.

General Ledger, Upgrade Impacts

MRC, Upgrade Scenarios Reporting set of books not assigned to a source ledger
Upgraded to primary ledgers You can continue to use the upgraded primary ledger for journal processing If you do not want these unattached reporting sets of books to be upgraded to primary ledgers, then before the upgrade, you should assign the reporting set of books to a primary set of books using the Assign Reporting Set of Books form in Release 11i

Reporting set of books with disabled relationship to a primary sob

upgraded as a disabled reporting currency assigned to the upgraded primary ledger

General Ledger, Upgrade Impacts

MRC, Upgrade Scenarios Inconsistent MRC Setup Between Products and OUs
Before Upgrade: Run the Accounting Setup Manager Pre-Update Diagnosis Report to correct any issues In Release 12 reporting currency conversion options are synchronized across all products and operating units for that reporting currency

General Ledger, Upgrade Impacts

Subledger Accounting Integration Subledger Accounting Method
Upgraded ledgers have Standard Accrual or Standard Cash Reporting currencies inherit the subledger accounting method from the source ledger You will be able to use the ledger immediately after the upgrade Suspense Account: 11i migrated to Entered Currency Balancing Account Rounding Differences Account: no default assigned

Subledger Accounting Reporting

Specify ledger (or ledger set) when submit reports like Open Account Balances Listing (Trial Balance, Posted transaction registers, agings, etc.)

General Ledger, Upgrade Impacts

Period Rates
Migrated to daily rates Conversion rate type name of Period End <ledger id> Conversion rate type name of Period Average <ledger id> for period average rates

Revaluation
Upgrade assigns daily rates to ledgers Secondary Segment Tracking for Revaluation Share Revaluation set across ledgers (w/same COA) but specify different secondary tracking options During the upgrade, revaluation sets will keep the same gain/loss account templates as originally defined

General Ledger, Upgrade Considerations

Sets of Books to Ledgers, tables and ids remain the same
SOB_ID becomes LEDER_ID GL_SETS_OF_BOOKS becomes GL_LEDGERS Most common customizations are on GL Interface SOB_ID remains LEDGER_ID added GL processing and queries GL_SETS_OF_BOOKS view to ledgers Miscellaneous GL tables Update column references to LEDGER_ID

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Multiple Organizations

MOAC: Multi-Org Access Control

Role based access to Operating Units

Perform multiple tasks across operating units without changing responsibilities

Belgium
Legal Entity

Holland
Legal Entity

Denmark
Legal Entity

Functional Tasks
Order Management Dunning, Collections, Billing Requisition, Demand & Purchase Orders Receiving & Drop Ship Invoice Receipt, Disbursement Customer Data Management Accounting Setup

Belgium
Operating Unit

Holland
Operating Unit

Denmark
Operating Unit

Responsibility SingleResponsibility Responsibility

Responsibility

Multiple Organization Access Control

Summary of Changes Security Profiles for data security
MO: Security Profile List of operating units for a responsibility Defined in HR

- OU field on UI
all transactions setup data specific to OU, like transaction type

Enhanced Multi-Org Reporting and Processing

Ledger/Ledger Set parameter on accounting reports and processes OU parameter on other standard reports and processes For example: submit the Payables Open Interface Import w/OU param null to import all records across all OUs

Multiple Organization Access Control

Upgrade Impacts Multi-Org required in R12
MO is enabled when fresh install in R12 Can have 1 OU 11i customers must enable before upgrade (see Metalink note)

11i Operating Units preserved in R12

If assigned to Set of Books, that association is preserved and migrated to primary ledger association Setup streamlined through Accounting Setup Manager View all OUs associated w/a LE and Ledger Define new OUs and maintain from this interface

11i Style single org access preserved after upgrade

MOAC, Payment Templates

Select OUs
Select OUs

MOAC, Maintain Period Statuses

Select Ledger, and optionally, OU

MOAC, Submit Open Account Balances Listing

Select Ledgeror Ledger Set

MOAC, Upgrade Considerations

Transitioning to Multi-Org Access Possible for all org-aware applications To take advantage of Multi-Org Access Control
Define security profiles Assign security profiles to responsibilities w/MO:Security Profile profile option Optionally set MO: Default Operating Unit

Transition documentation for enabling MOAC in custom code will be available through Metalink

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Subledger Accounting

Subledger Accounting
Centralized Rules, Common Repository: Global Control
Ledger French Rules Plan Comptable French Calendar

What it is

Some Benefits

EUR

Accounting Rules SarBox & 8th Dir. User Editable Subledger Daybooks

(Journals) Subledger Balancing Reports, inquiries, open items, et cetera Multiple Representations Common Posting to GL Ledgers Real time or Periodic

Faster, Easier
Reconciliation Corporate Rules = Accounting Standardization Local Rules = Improved Local Compliance Automate Apples to Apples Adjustments Improved Auditability Improved Internal Control

Dr

Cr

Subledger Accounting

Payables Invoice

Subledger Accounting
New Subledger Accounting Data Model
Common Framework facilitates compliance Oracle Non-Oracle Simultaneously account for a single transaction in multiple ways Accounting Entry Repository and XMLP Reporting Draft Accounting

Replaces Global Accounting Engine (AX)

Subledger Accounting
Submission of the Upgrade
1. Pre-Upgrade
Determine how much accounting data you need online Submit for All Ledgers as of a Start Date Upgrades current fiscal years data Based on the upgrade date in first half of fiscal year, upgrade will go back to prior fiscal year to upgrade minimum of 6 periods in second half of fiscal year, upgrade processes data in all periods of curreny fiscal year AP & AX exception: all accounting events, headers and lines are upgraded regardless of the start date Submit for each Ledger and Period Not a substitute for downtime upgrade

2. Downtime Upgrade

3. SLA Upgrade Historic Subledger Transactions Program

Subledger Accounting
How does SLA determine what accounting to perform for a transaction?

SLA looks at the link between the transaction's OU and the ledgers linked in the GL Accounting Setup flow. Each ledger has accounting method specified. Upgraded ledgers have Standard Accrual or Standard Cash

SLA, Uptake by Product

Uptake
Payables Receivables Projects Assets Costing OPM Payroll Public Sector/Federal, incl. Procurement Property Manager Loans Cash Management Globalizations for Latin America Lease Management (R12 patch)

No Uptake
Treasury, Student Systems, Trade Management

SLA, Uptake by Product

Two styles of SLA uptake:
1. Complete SLA setup seeded, migrated from 11i AX Payables Costing Loans 2. Hybrid SLA setup Receivables AutoAccounting + SLA Assets Workflow Account Generator + SLA Projects AutoAccounting + SLA Procurement Workflow Account Generator + SLA

SLA, Uptake by Product

Upgrade modes
No Upgrade: No historical accounting data is upgraded (Cash Management, Federal/Public Sector, OPM) Partial upgrade: Some historical data is upgraded You determine the range of periods when you submit the SLA pre-upgrade SLA Upgrade Historical Subledger Transaction Programs is available, but not a substitute for the pre-upgrade (AP, AR, Assets, Costing, Projects) Full upgrade: All historical accounting data is upgraded to SLA (AX, Loans, Property Manager)

Impact: Accounting Reports, see detailed product pages

SLA, Upgrade Impacts

AX SLA extends the AX functionality and replaces it by providing customizable accounting rules Upgrade migrates all existing accounting events, headers, lines from AX to SLA and migrates setup from AX to SLA seeded rules. Upgrade migrates posting sets of books to secondary ledgers in GL

SLA, Upgrade Impacts

Payables SLA replaces the 11i Create Accounting process Most accounting setup migrated to SLA
11i Multi-Period Posting feature migrated to the Deferred Accounting feature in SLA 11i Future Dated Payments feature migrated to Payments Bills Payable feature Exceptions: Automatic Offsets Discount method

Optionally define additional accounting rules in SLA

SLA, Upgrade Impacts

Payables
Transaction Upgrade
all accounting events, headers and lines upgraded If AX implemented in a given OU, upgrade migrates AX accounting events, headers and lines to SLA instead of those in Payables. payment distributions and prepayment application distributions are upgraded based on time periods you specify during the submission of the upgrade

What about transactions outside of the upgrade period?

For example: if you need to adjust a historical payment, unapply a prepayment application, account for invoice tied to non-upgraded po Message, "This line cannot be accounted until the accounting event for the application &APPLICATION_NAME that it references has been fully accounted." Submit the SLA Upgrade Historical Subledger Transactions program to update that record

SLA, Upgrade Impacts

Payables Accounting Reports
New Trial Balance SLA Open Account Balances Listing Initial liability balances populated by ledger based on upgrade time periods you specify SLA Account Analysis SLA Journal Entries Report

SLA, Uptake by Product

Payables Investigate accounting customizations on 11i AP accounting tables
What are they doing? For example: do you have customizations based on Project adjustments? PA uptakes SLA in R12 and creates accounting entries for adjustments rather than using AP to create those entries as in 11i Can SLA meet the requirement? If not, transition to use SLA datamodel

SLA, Uptake by Product

Loans All historical accounting data upgraded to SLA All setup migrated from Loans to SLA seeded rules
Except: One accounting setup in Loans that splits by percentages. Distribution used as SLA source.

Same process as 11i: Submit Create Accounting

SLA, Uptake by Product

Receivables Auto Accounting still used and must be set up
CCID used as source in SLA
Account derivation rule seeded that uses this source

Optionally define additional accounting rules in SLA Accounting Reports combine

SLA accounting lines AR distribution accounting

Transaction Upgrade
Historical transaction data upgraded based on time periods you specify during the submission of the upgrade

SLA, Uptake by Product

Receivables CCID Correction Form Obsolete
Replaced by SLA Draft Accounting Errors to GL account code combinations can be identified by draft accounting, and corrections can be made in the Accounting Methods Builder rules engine.

Investigate Accounting Customizations

If use SLA for additional rules you might need to point your customizations to SLA datamodel to get all accounting

SLA, Uptake by Product

Assets Workflow Account Generation still used
CCID used as source in SLA
Account derivation rule seeded that uses this source

SLA Post Accounting Programs determine which lines to send from AP to FA during Create Mass Additions Optionally define additional accounting rules in SLA Accounting Reports
Account Drill Down report replaced by new SLA report Account Analysis Report Accounting Reports run off SLA accounting

SLA, Uptake by Product

Assets Transaction Upgrade
Books that are disabled are not upgraded Transactions (Additions, capitalizations, backdated additions and transfers, retirements, group adjustments): Historical transaction data upgraded based on time periods you specify during the submission of the upgrade Depreciation: Accounting for current period depreciation upgraded only if deprec run and period remains open. (If want more run the Upgrade Assets Accounting Data for Subledger Accounting program after the upgrade.) Only transactions with seeded source types and adjustment types will get upgraded (none that reference custom lookup types for journal entries)

SLA, Uptake by Product

Assets Process Change
Run Create Accounting instead of Create Journal Entries
Run Calc Deferred Deprec and then Create Accounting instead of Create Deferred Deprec Journal Entries Profile FA: Include Nonrecoverable Tax in Mass Addition is obsolete; replaced by Post Accounting Programs in SLA Setup for all eligible lines from AP to Assets for Mass Additions create done in Post Accounting Programs.

Investigate Accounting Customizations

If use SLA for additional rules, you may need to point your customizations to SLA datamodel to get all accounting

SLA, Uptake by Product

Projects AutoAccounting still used and must be set up
CCID used as source in SLA
Account derivation rule seeded that uses this source

Optionally define additional accounting rules in SLA

SLA, Uptake by Product

Procurement Workflow Account Generator still used and must be set up SLA used for only for Federal
Budgetary Control and Encumbrance entries Setup seeded in SLA Encumbrance detail reporting still based on PO Distributions

Optionally use SLA to modify descriptions of accounting entries Not recommended to define additional accounting rules in SLA at this time

SLA, Upgrade Considerations

Transitioning to R12 SLA You get:
Visibility and access to balanced subledger accounting entries Centralized repository defining Accounting Rules Multiple Accounting Representations Subledger Day Books (Journals) & Balancing Reporting Currencies

You can: Identify opportunities

Obsolete complex customizations Use the power of SLA sources to minimize manual overrides and plug gaps E.g. Use customer category to drive accounting E.g. Use supplier type to drive accounting

SLA
Applications Accounting Definition

SLA
Setup
JOURNAL ENTRY SETUPS Define/copy and modify journal line types METHODS AND DEFINITIONS Define/copy and modify journal line definitions LEDGER SETUP Assign subledger accounting method to ledger

Define/copy and modify account derivation rules

Define/copy and modify application accounting definition

Define/copy and modify descriptions

Validate application accounting definition

Define/copy and modify subledger accounting method

Multiple Accounting Representations

Global Compliance Statutory and Stock Market
Ledger A French Rules Plan Comptable French Calendar Ledger B US GAAP US COA US Calendar

EUR

EUR

or

Dr

Cr

Subledger Accounting

Single subledger transaction can create multiple accounting representations and in multiple currencies

Chose to us an alternative Ledger or just an Adjustment Ledger or segment

Payables Invoice

Multiple Accounting Representations

Management Version in a Management Ledger Set
Ledger A French Rules Plan Comptable French Calendar Ledger B US GAAP US COA US Calendar

EUR

EUR

or

Dr

Cr

Subledger Accounting

Single subledger transaction can create multiple accounting representations and in multiple currencies

Chose to us an alternative Ledger or just an Adjustment Ledger or segment

Ledger Set
IAS/ IFRS or US GAAP

Payables Invoice

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Banks

Banks
New Banks Data Model
Common Framework facilitates compliance Legal Entity ownership of accounts Operating Units granted usage rights Centralized creation and maintenance of Bank Account Balances

R11i Recap
Banks and accounts defined in many areas: AP, Payroll, Treasury Bank accounts defined at OU level Redundant setup if OUs used same bank, account Limited reconciliation flexibility

Banks
Uptake by product
AP
AR Payroll Cash Management

Treasury

Exceptions
Human Resources; create employee bank accounts both in HR and Payments (if paying expense reports through AP)

Banks
Upgrade Impacts
Banks and branches migrated to TCA parties Banks merged if the following attributes are all the same:
Bank number Institution type Country Bank admin email Bank name alt Tax payer id (from GDFs) Tax reference number (from GDFs) Description Active date End date

Banks
Upgrade Impacts continued
Security & Access LE: Internal bank accounts owned by LE; LE derived from bank accounts OU in 11i OU: OU granted usage rights in Banks UI User: LE access assigned to users in UMX Bank Account Security Management Upgrade sets BAM security for each responsibility that had access to the bank account forms in 11i. An LE is derived from the OU the responsibility had access to in R11i. Note: MOAC sets access for particular OUs Reconciliation options at bank account level

Banks
Upgrade Impacts continued
Treasury Company bank accounts migrated one to one to new central model Subsidiary bank accounts migrated one to one as well, but must be managed in the Counterparty Profiles form Counterparties used as banks in 11i (in company or subsidiary bank accounts) migrated into banks and brances

Banks
Define Owner of Bank Account

Legal Entity

Banks
Grant OU Access to Bank Account

Operating Units

Banks
User Security
Security Wizard

Banks
User Security

Assign LEs

Banks
Supplier and Customer Bank Accounts
What about external bank accounts?
Party information (Supplier and Banks) migrated into central bank model (I.e. TCA) Partys payment information and all payment instruments (bank accounts, credit cards) moved into Payments Customers, Students, related GDFs = Payer record, linked to the Party Suppliers, related GDFs = Payee record, linked to the Party Improved data security w/central encryption management and masking control of payment instrument information Upgrade does not merge payment instruments; upgrade appends OU to the bank account name and to the Name on Card value, for credit cards (After upgrade you may want to review these and consolidate into a single active record.)

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Oracle Payments

Bank Model: Example of what you can do

Pay invoices from different OUs with 1 instruction
OU A

New Payments Module New Bank Module New Bank & Credit Card Features

OU B

OU C

Single Payment Instruction

Bank

Payments

Sub Ledger Accounting

Invoices

Oracle Payments
Summary of Changes New Payments (IBY) Data Model Common repository for payment data
Funds Capture and Funds Disbursement TCA party base Customers Students Suppliers Encryption management and masking control of payment instrument information

Replaces and expands iPayment functionality

Oracle Payments
Summary of Changes Formatting and Validation framework:
Oracle XML Publisher Format Template
(file format layout)

Oracle Payments Format

(format definition)

Process Profile
(holds all payment processing rules)

Format Validations
(validations required by format specification)

Oracle Payments
Secure Payment Data Repository

Specify Encryption and Specify Encryption Masking Settings

and Masking setup

Oracle Payments, Upgrade Impacts

External Bank Accounts and Credit Cards Payment Instruments migrated to Payments
No longer striped by OU Upgrade does not merge payment instruments Naming Conventions: External Bank Account: Bank Account Name OU, e.g. Citibank Vision Operations, Citibank Vision Services Credit Cards: Name on Card OU 11i encryption of supplier banks migrated during upgrade User Interfaces merged into Suppliers, Customers pages

Review and consider consolidating instruments that are shared

Oracle Payments, Uptake by Product

External bank accounts migrated into Payments
Oracle Payables Oracle Receivables Note: Employee bank accounts are still defined both in HR and in Payments (11i Payables)

Credit card information migrated to the Payments payment card entity

Oracle Payables Oracle Order Capture Oracle Order Management Oracle Service Contracts Oracle Student System

11i payment formats migrated to Payments entities

Oracle Payments, Uptake by Product

Receivables: Funds Capture Payables: Funds Disbursement Obsolete in R12:
Profiles and options that controlled credit card brands Profiles and options that controlled masking on credit cards or bank accounts iPayment AP (including Global) Automatic Payment Programs and Payment Formats AP Automatic Bank Transmission AR programs that controlled the formatting of remittances and bills receivables remittances

Payments, Uptake by Product

Payables Upgrade of 11i payment formats
For each AP payment program that is linked to a format definition, one Oracle XML Publisher template is created and linked to one Oracle Payments format For each AP format definition, the upgrade creates one Payment Process Profile linked to the Oracle Payments format Usage information embedded in 11i setup and payment format get migrated to the Payment Process Profile usage rules internal bank account from which funds will be disbursed First party LE Payment Methods Currencies

Payments, Uptake by Product

Payables EDI Payments using Oracle e-Commerce Gateway
Setting the value for the Electronic Processing Channel in the Payment Process Profile setup page controls integration with Oracle e-Commerce Gateway. Actual formatting and transmission is performed by Oracle eCommerce Gateway.

Future Dated Payments feature migrated to Bills Payable

setup moved from the payment document on an internal bank account to the payment method in Oracle Payments

Payments Dashboard, new UI within Payables for submitting and managing the payment process

Payments, Uptake by Product

Payables Setup options migrated to Payments
11i Financials Options Payment Method field to Payment Method Defaulting Rules Pay Alone field to Disbursement System Options, Pay Each Document Alone field Payables Options Bank Account field replaced by usage rules on a Payment Process Profile EFT User Number field to Payment System required settings Payment Batch Limit field to Payment Process Profile, payment instruction creation payment limits region

Payments, Uptake by Product

Receivables Upgrade of 11i formats
For each AR format, one Oracle XML Publisher template is created and linked to one Oracle Payments format For each AR format, the upgrade creates one Funds Capture Process Profile linked to the Oracle Payments format

Globalization formats and features also move to Oracle Payments Note that Oracle Receivables retains its existing features for lockbox processing and the electronic upload of remittance messages

Payments, Uptake by Product

Receivables Payee Configuration
Processing options specified here Typically one setup for the enterprise Upgrade assigns OUs to the Payee based on existing transactions in AR Replaces 11i Receipt Class linked to iPayment Payee

Payee Configuration Routing Rules

Upgrade creates routing rules from each 11i receipt class that has an automatic creation method One for each combination of the receipt class remittance method, its internal bank account, and the organization derived from the bank account.

Payments, Uptake by Product

Receivables Bank Account Transfers
AR Automatic Remittances Creation Program passes settlements to Oracle Payments Settlements grouped into settlement batches according to rules configured on the Funds Capture Process Profile Process profile controls the rules for formatting and processing the settlement batches See: Funds Capture Process Manager dashboard Upgrade creates Global Payment System, Funds Capture Process Profile and other setup Payee linked to OUs that will create source transactions to be settled via bank account transfer (replaces the Merchange Ref field that was set on the Receivables Receipt Classes form in 11i)

Payments, Uptake by Product

iPayment Upgrade of 11i iPayment formats
For each iPayment format, one Oracle XML Publisher template is created and linked to one Oracle Payments format For each iPayment format, the upgrade creates one Funds Capture Process Profile linked to the Oracle Payments format Migration of formats for the following payment systems Citibank Concord First Data North Paymentech

Easier review and updates

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Oracle Advanced Global Intercompany System

Advanced Global Intercompany System

Address the Top Barrier to a Fast Close
Advanced Global Intercompany System

Web UI

Subledger Invoices & Documents

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

Dr

Cr

General Ledger

Subledger Accounting

Receivables

Payables

Advanced Global Intercompany System

Summary of Changes New Intercompany (FUN) Product and Data Model Debit and credit account pairs Accounting created in the subledgers Intercompany accounting Intracompany balancing

Flexible Security
Intercompany trading partners mapped to users instead of responsibilities Approval rules managed with Oracle Approval Manager (AME) Replaces and expands GIS functionality

Advanced Global Intercompany System

Upgrade Impacts Subsidiaries from GIS migrated to Intercompany Organizations
Stored in TCA A relationship between TCA Intercompany Party and the legal entity to which it belongs is created A relationship between customers and suppliers is not created, you must specify for a given pair of trading partners

Advanced Global Intercompany System

Upgrade Impacts & Considerations Existing intercompany transactions are upgraded into the new Oracle Advanced Global Intercompany System data model Open transactions cannot be upgraded Transactions, more than one year old, regardless of status will not be upgraded

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Oracle Payables Oracle Receivables Oracle Assets

Oracle Payables, Upgrade Impacts

Suppliers are defined as TCA Parties
The supplier, supplier site and supplier contacts tables are obsolete and replaced with views that join information from the old tables with information in TCA Country and address line1 required; derived based on OU if null One party site for each distinct supplier site address Employee suppliers: employee address NOT migrated to party site in TCA; remains in Oracle HR for data security reasons. TCA Party relationships for franchise or subsidiary and its parent company Note: You cannot search existing TCA party and make it a supplier

Oracle Payables, Upgrade Impacts

Lines between invoice header and distributions
Goods Services Associated tax/freight/misc charges During the upgrade, Oracle Payables creates one invoice line for every distribution available in the 11i distributions table, except in the case of reversal pairs where Payables creates one line with a zero amount Note: SLA and eBTax require that Payables invoice distributions be stored at the maximum level of detail. Oracle Payables makes this transformation of existing invoice distributions during the upgrade. Exchange Rate Variance Invoice Price Variance

Oracle Payables, Upgrade Impacts

Global Descriptive Flexfields obsolete
Payment migrated to Oracle Payments setup E.g. bank charge bearer, settlement controls Tax migrated to regular fields on supplier, invoice E.g. intended use, fiscal classification, ship-to location

Oracle Receivables, Upgrade Impacts

Advanced Collections
Replaces Receivables Collections Workbench Menus automatically redirected (MetaLink Note #389443.1)

Deductions Management
Replaces Trade Accounting Delivered in partnership between Oracle Receivables, Oracle Trade Management, and Oracle Credit Management products (MetaLink Note #370763.1)

Bills Receivable
Replaces Bills of Exchange (MetaLink Note #353280.1)

Global Descriptive Flexfields obsolete

Payment migrated to Oracle Payments setup E.g. bank charge bearer

Oracle Assets, Upgrade Impacts

Global Descriptive Flexfields for Greece obsolete
Commitment and Investment Law migrated to regular fields in Asset Workbench

Interfaced invoice distributions updated with line number

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Summary

Release 12: The Global Business Release

Work Globally, to be more competitive
Think Globally, to make the right decisions Manage Globally, to lower cost and increase performance
XML Publisher Reporting DBI, FCH
General Ledger

Corp. Compliance US GAAP / IAS-IFRS Corp COA Corp Calendar Joint Compliance US GAAP / IAS-IFRS Corp COA Corp Calendar Parent Compliance US GAAP / IAS-IFRS Corp COA Corp Calendar National Compliance Local Regulation National COA Local Calendar

A$+$

OICM Ledger Sets, Ledgers SLA, Tax

+$

Profitability Mgr, EPB

Subledger Transactions

Intercompany, Bank, Payments

MOAC, +300 Features TCA

Data Management
Leveraging centralized data model
Global Tax Payments

Payables Purchasing

Geographies

Suppliers

Party Information

Cash Management

Banks and Branches

Trading Community Architecture

Oracle Fusion Middleware

ERP

CRM

3rd Party

For More Information

Documentation: Financials Functional Upgrade Impacts

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Deciding to Upgrade

E-Business Suite Release 12

Best time to improve your competitive position in the market place is during technology shift. Next generation applications platform. Fusion. Get it now w/R12.

E-Business Suite Release 12

1st Major Oracle Applications Release since 11i
E-Business Suite is the Architectural basis for Fusion
Integrated Business Intelligence TCA with Customers, Suppliers, Students, Legal Entities, Banks XML Publisher, BPEL Centralized Accounting and Tax engines Ledger architecture Continued Tech Stack Convergence: JTT to OAF First release on Fusion Middleware

Improved User Interface Better Single Instance Support Over 300 new financials features & integrations
Easier reconciliation, XML reporting, complex payments, streamlined asset flow, Advanced Collections Retek integration, clinical data repository

Deciding to Upgrade
Cost vs. Benefit Architecture vs. Functionality Upgrade vs. Reimplementation EBS vs. Fusion

Deciding to Upgrade
Cost vs. Benefit; Will it be worth it? Huge potential for positive ROI
Implement features to ease your current pain points Get a jump on fusion and be ahead of your competition

Not another 11i

Quality assurance (weve upgraded internally xtimes) Upgrade process improvements SIP program?

What is the cost of carrying your customizations forward release after release?

Deciding to Upgrade
Architecture vs. Functionality Step toward next generation applications: Fusion Provides the foundation for over 300 new features You can benefit from:
Capture sales and use tax automatically with eBTax Get Automatic Offsets in AR with SLA Collect faster with Advanced Collections Track serial numbers, manufacturers on purchases through POAPFA flow with Lines in Payables Apply cash at the line level in Receivables Process complex payments in less time than before Reduce redundant data storage and maintenance Get the reports you need without complex coding using XMLP

Deciding to Upgrade
Upgrade vs. Reimplementation Reimplementation is not necessary! Your 11i implementation will work in R12 Pick and choose the features you want to implement
Over 300 to choose from! Architectural features too: eBTax for location-based taxes eBTax for VAT recovery Build a unique account w/SLA

Where do your employees spend time correcting or manually processing exception transactions?

Deciding to Upgrade
Upgrade vs. Reimplementation Analyze your implementation and make new decisions at your own pace
No time to analyze your customs for obsolescence? Want to get the bang out of ledger sets? Need ledgers to share COA and calendar Implement this change any time after the upgrade Example: Internal Oracle

R12 is not an all or nothing, now or never scenario

Deciding to Upgrade
EBS vs. Fusion R12 is not the last stop before Fusion R12 will continue to be enhanced and supported Step toward next generation applications: Fusion

E-Business Suite Release 12

Do you want to
Secure your bank and payment instrument data? Get reports you need faster? Get tax calculated and reported correctly? Retire your accounting customizations? Automate tax decisions? Have fewer payment runs? Reconcile tax to accounting to transactions more easily? Track changes to your processes? Integrate with third party applications? Have happier end users?

E-Business Suite Release 12

Best time to improve your competitive position in the market place is during technology shift. Next generation applications platform. Fusion. Get it now w/R12.

QUESTIONS ANSWERS

The preceding is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. 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 for Oracles products remains at the sole discretion of Oracle.