eBusiness Tax

This is a new product in Release 12 Single point of control for transaction based taxes Schema ZX Components include:
SetUp Repository Tax Engine (Services & Service Request Mgr) Tax Record Repository Tax Reporting Ledger
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Refer to Oracle E-Business Tax Implementation Guide Oracle E-Business Tax User Guide Especially useful is Chapter 4 of the Implementation Guide which provides an example set-up of UK VAT

Tax SetUp

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Oracle eBusiness Tax provides these seeded responsibilities: Tax Manager. Assign this responsibility to users who will set up and maintain tax configuration data. The tax manager responsibility is the responsibility with the highest level of access to E-Business Tax functionality. If you want to include the GL Tax Options window, you must assign a data access set to the GL: Data Access Set profile option under the Tax Manager responsibility. Tax Administrator. Update and assign this responsibility to users who will provide E-Business Tax technical setup and support services. You can update this responsibility according to the duties of each tax administrator user. Oracle Tax Simulator. Assign this responsibility to users who test tax setups with the Oracle Tax Simulator. You can also set up new E-Business Tax menus and responsibilities according to your requirements.

Example: Simplified SetUp

Tax Regime: Australian GST Tax: GST Tax Statuses: Standard (& maybe Exempt?) Tax Rates: 10%, 0% Tax Rules:
- Determining Factor Class: Geography - Class Qualifier: Partys Ship to Site

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Tax Regime

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Tax Regime: 1st Party LE

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New jargon: First party LE is the LE representing your / the implementing company Configuration owner: an operating unit either uses the tax profile of its parent Legal Entity (the global configuration owner) OR maintains a separate tax set-up

Define Taxes

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Tax Rates

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Tax Rules

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Tax Configuration CheckList

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Tax Migration Solution

11i AP / AR Tax Types Tax Code All Tax Codes Tax Rate Details % rate, dates etc Location based rates 12 Tax Regime Code Tax Code & Rate Code Tax Status Standard Tax Rate record TCA geographies, Tax Jurisdictions Tax Classification Codes GGC

Tax Calc details

2007 Jeannie Dobney & Graham Goodwin

The Migration Solution allows you to upgrade from 11i with a minimum of changes required. Refer to Chapter 3 of the Oracle E-Business Tax Implementation Guide, Especially pp.3-7 ff which has a helpful table mapping 11i functionality to 12, as it will be migrated and how it might be optimised by re-implementing in Release 12 (simplified in the above slide). Custom reporting will also need to be reviewed as part of the migration.

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Tax Reporting
The Tax Reporting Ledger consists of tax information recorded in each of the related Applications (i.e. AP, AR, GL). The tax extract simply copies the original accounting data from each application and stores it in an interface table without performing any calculations or derivations on it. The Tax Reporting Guide describes each of the many columns (100s) in the single reporting view ZX_REP_EXTRACT_V
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Refer to Oracle E-Business Tax Reporting Guide

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Tax Reporting
Use reporting tools like XML Publisher or RXi Reporting (or Reports) to publish data. Reports can be at Legal Entity, Ledger or Operating Unit level. Standard reports (that can be copied and modified) include:
Tax Register Tax Reconciliation Tax Reconciliation by Taxable Account (appears suited to VAT tax returns / audits) VAT exception report
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Refer to Oracle E-Business Tax Reporting Guide (especially chapter 2). Note: Readers may also find the following paper from the OAUG archive helpful: Oracle's new Financial Tax Register (Tax Reporting Ledger) a well kept Secret by Hans Kolbe, Partner at Celantra Systems, Inc. and Chairperson of the Multi-National SIG Group of the OAUG Whilst the paper refers to 11i10 it looks forward to Release 12 and is so well presented that it helps with gaining a conceptual understanding of this topic.

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Sub-Ledger Enhancements
Other Highlights:
File System reorganised to separate code and output files Value Sets can be validated using PL/SQL Integration Repository shipped with EBS (currently available at irep.oracle.com) Request Submission from OAF pages XML publisher further enhanced

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XML Publisher has been further enhanced with nice little features like support for Microsoft Words drawing functionality, the ability to display Carry Forward page totals and the ability to generate PDF bookmarks (for the Navigation pane). Value Sets can now be validated using PL/SQL procedures and declarative references to Key Flexfield combinations. System Administrators in strictly audited environments will welcome the fact that the file system has been reorganised so that code is now separated from log and output files, allowing these directories to be mounted separately if required. Profile options can now be categorised to restrict access to more sensitive system controls. The Oracle Applications Framework (OAF) now provides the ability to submit Request Sets from OAF pages. OAF personalisation import and export capabilities have also been enhanced so that personalisations can be replicated across instances from the Functional Administrator responsibility, rather than via line commands. Users can now also apply their own custom look and feel to Framework pages (i.e. skin them) so that eBusiness pages can be made to match your corporate web-site. Personalization Improvements include support for Expression Language (EL) in UI properties. For example, you can make a field read-only or hidden based on a value in another field. Web-Service users will welcome the provision of a comprehensive Integration Repository offering an on-line directory of Web Services, interfaces and integration points and acting as a service broker for the eBusiness Suite. The Applications Manager Dashboard has been enhanced to display additional performance metrics and security violation diagnostics. iSetUp is a tool which has existed for some time but now seems to be really maturing. It supports migration of set-up through the implementation cycle and may be worth another look by consultants who found it was not sufficiently robust in previous versions. And finally those using Tutor will welcome the fact that Author can now be installed on a server and shared by multiple users.

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Oracle Payments
New central Payments engine i.e. new product (iPayment is obsolete) Supports credit cards & electronic payment methods (integrated with Financial Institutions and payment systems) Both O2C and P2P Apps use this, i.e. Receivables, Payables and Cash Mgt (Payroll still separate) Can generate payments across Organisations and Currencies Schema = IBY
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Refer also to Oracle Payments User Guide and Implementation Guide. (Hint: start with the User Guide because the Implementation Guide contains a lot of very technical detail on integrating with third party electronic payment processing). Users will notice big changes in Payables. Most obvious is that the Payment workbench is now part of a separate application: Oracle Payments. This new central payment engine, 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 needed to connect these applications and others with third party payment systems and financial institutions. In addition to new features, Oracle Payments offers functionality previously released as Oracle iPayment, which will be obsolete as of R12. This centralisation enables Shared Service Centres to efficiently centralise the payment process across multiple organizations, currencies, and regions. Oracle Payments is also heavily integrated with XML /BI Publisher having 120 modifiable formats. This will make flexible formatting of payment documents much easier and less costly.

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Payments: New Jargon

Funds capture refers to the electronic retrieval of funds, typically by a payment system on behalf of the deploying company, from payers, such as customers, who owe debts to the deploying company. The payer, in this case, provides Oracle Payments with pertinent payment information, such as a credit card, debit card, or bank account number. Funds disbursement is the process of paying funds owed to creditors, such as suppliers.
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Refer also to Oracle Payments User Guide. Funds Capture Features Funds capture features support the process to electronically receive funds owed by e.g. customers. Oracle Payments supports authorization and settlement of funds against credit cards and PINless debit cards, refunds to credit cards, electronic funds transfers from bank accounts, and formatting of bills receivable. Note: Oracle Receivables retains the functionality of lockbox processing and electronic upload of remittance messages. For funds capture functionality Oracle Payments integrates with the following products: Oracle Collections, Oracle Lease Management, Oracle Partner Management, Oracle Service, Oracle Student System (and others). Funds Disbursement Features The Oracle Payments disbursement engine enables you to greatly simplify your procedures for managing complex payment processes that span multiple payment methods, formats, check stocks, transmission protocols, currencies, organizations, and bank accounts. The Oracle Payments funds disbursement process enables users of Oracle Payables and other products to focus on the invoice selection process before submitting the documents payable to Oracle Payments for payment processing. This is achieved by splitting the payment build process into two processes. The first process creates payments by grouping documents according to various rules, such as the payment method and currency. The second process then aggregates payments into payment instruction files, formats the files, and handles additional processing, such as printing and transmission. This aggregation process can be done for payments created from multiple document selections and submissions to Oracle Payments.

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Oracle Payments
Supported electronic payment types for funds capture (AR):
Credit cards Purchase cards PINless debit cards Bank account transfers (always offline)

Supported for Funds Disbursement (AP):

Cheques, EFT Wire

May be processed online or offline

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This overview does not include further detail on the Funds Capture process flow, however it is clearly described in chapter 2 of the Oracle Payments User Guide. This includes the interaction between the source Application e.g. Receivables and Oracle Payments i.e. how the authorisation and settlement for a transaction originating and recorded within Receivables is passed to Payments. The Oracle Payments User Guide also contains a chapter on the Funds Capture Home Page which is a read-only web page used by the Payment Administrator to display the status of settlement batches.

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Funds Disbursement Process

Source Application (AP) Oracle Payments

Invoice

Invoice Selection Program

Payment Process Request

Build Payment Submit Program

Payment Instruction

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This diagram is simplified from the process diagram in the Oracle Payments Users Guide. You can manage the payment process from: the Oracle Payments Funds Disbursement Process Home Page or from the Payment Manager Dashboard in Oracle Payables The Funds Disbursement Process Home Page should be used when the deploying company uses a centralised payment processing system. (If the deploying company sets up Oracle Payments so that the Create Payment Instructions program is run separately from the Build Payments program, then payments from different payment process requests are mixed together when creating payment instructions, and it is more difficult to follow the payment process from the perspective of the payment process requests. In this case, users are advised to use the Funds Disbursement Process Home Page.) The Oracle Payables Payments Dashboard should be used when the deploying company uses a decentralized payment processing system. Decentralized payment processing is where more than person or team performs multiple payment functions, such as selecting the invoices to be paid, making the payments, and remedying any problems that occur with the payment process. In this scenario, a user who is responsible for invoice selection and the submission of payment process requests, as well following the payment process, may decide to use the Oracle Payables Payments Dashboard. Note that if you choose to use the latter method the changes for the end-user may be subtle but still require some adjustment e.g. the Confirm Payment batch step in 11i becomes Record Print Status in Release 12.

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Payment Dashboard

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The Funds Disbursement Process Home page is the first page the Payment Administrator sees (assuming this is the method you will be using: refer previous slides notes). This page and its subsidiary pages enable the Payment Administrator to monitor and manage the payment process described in the previous section. The Funds Disbursement Process Home page is a read-only page that includes a Pending Actions region that displays the current status of payment process requests and payment instructions that are in-process. During the payment process, the Payment Administrator uses the Funds Disbursement Process Home page to: monitor items that require user action in the Pending Actions region research completed payment process requests, payments, and payment instructions mark electronic payment instructions complete submit and monitor concurrent processes record and resolve stop payments void payments view graphs of processing statistics

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Payments SetUp

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Suppliers

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Suppliers are now included in Trading Community Architecture (TCA). This means that the enhanced Data Librarian capabilities for data management that were previously available for customer management and now also available to manage your supplier database. Supplier data also now includes the ability to store survey information which has been collected via the iSupplier portal. The inclusion of suppliers in the TCA may also be the reason Oracle is now able to offer Accounts Receivable / Accounts Payable Netting. This allows a trading partner who is both a customer and a supplier, to have open receivables offset against open payables items (if you choose to do this).

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AP / AR Netting

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The Payables and Receivables Netting feature enables the automatic netting of Payable and Receivable transactions within a business enterprise. The first step is to define a netting agreement that incorporates the netting business rules and transaction criteria. A netting agreement controls how a group of trading partners net Payables and Receivables transactions. You can create a netting agreement for each group of trading partners that agrees to net transactions. Netting agreements include the business rules that define the types of transactions that may be selected for netting, and which suppliers and customers can be netted. (For prerequisite set up see below) Once the set up is complete, a netting batch can be submitted (or scheduled). The netting batch process uses the predefined information from the netting agreement, together with the information defined in the netting batch, to select the netting business rules and transactions for netting. You can optionally review the selected transactions and remove any that should not be a part of the netting batch. Optionally, send the Netting Proposal Report to your trading partner for review and approval of the netting batch. After the transactions are submitted for netting and approved by the trading partner, the netting process begins (if required). The netting process reconciles and clears the selected transactions for both Payables and Receivables (example on following page). (Note this information is from Chapter 5 of the Payables User Guide).
Set-Up Prerequisites General Ledger Setup Prerequisites Define a netting control account. Define a netting bank account. / / Define the exchange rate types if using multi-currency netting. Define the bank account at the legal entity level. Cash Management Setup Prerequisites Define the netting control account. / Enable the Multi Receipt Currency check box for each netting bank account. This option lets you create receipts in foreign currencies. Receivables Setup Prerequisites Before multiple customers are netted, you must set up a paying relationship for the customers. Associate the bank account used in the netting agreement with the AP/AR Netting receipt class. Enable the Allow Payment of Unrelated Transactions Receivables System Option.

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AP / AR Netting Example

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This example is from Solution Beacons Release 12 Primer and makes clear how netting works: The netting process compares the outstanding AR invoices with the outstanding AP Invoices and selects the lower of the two values for the netting amount. It then settles the lower invoice amount and automatically applies that same amount to the higher invoice amount. The example shown in this slide shows the following scenario: A trading partner with a defined netting agreement has AR invoices totalling $1100 and AP invoices totalling $400. When the netting process is run, a payment is created for $400 settling all of the AP invoices and a $400 receipt is also applied against the AR invoice leaving a balance owed in AR of $700 This functionality provides much needed visibility, reduces the cost of the trading partnership, and improves overall cash flow. Additionally, data entry is reduced and data processing is more efficient.

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AP Invoice Lines

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The Invoice Workbench has changed with the introduction of invoice lines. Invoice Lines support the representation of the goods or services as well as tax, freight, and other charges as lines with distributions tied to each line. Additional fields record attributes such as serial numbers and item descriptions. This feature offers the ability for line level approval and matching between an invoice line and a purchase order shipment pay item, or receipt. It also facilitates the capture and transfer of additional information to Oracle Projects and Oracle Assets.

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CE Banks now in TCA

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There is now a single access point for defining and managing bank accounts and this has been incorporated into the Trading Community Architecture (TCA). A single legal entity now owns each bank account and one or more organisations can be granted usage rights. This model apparently offers significantly improved reconciliation. Legal Entities, suppliers and banks are now also parties in Oracles Trading Community Architecture (joining customers, employees, locations etc). Master Data Management (MDM) is a Release 12 theme

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TCA Party Information

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The authors would like to thank Alyssa Johnson, Solution Architect at Solution Beacon for this section. Alyssa can be reached by email at ajohnson@solutionbeacon.com (www.SolutionBeacon.com) You can see Party data and the relationships between parties by navigating to the Relationships form from the TCA Manager responsibility. You cant see all the detail associated with the party but the Registry ID, Tax Registration Number, Taxpayer ID, and the Identifying Address are displayed. Also if there is a relationship assigned to the organization/person that is displayed as well. You can also create relationships. You can query on Legal Entities, Suppliers, and Bank information. In this example, the screenshot in this slide shows bank account information.

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TCA Information (continued)

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Clicking on the first Bank of America link: Notice the two relationships associated with this party. You can select relationship and click on the View Relationship button to view additional information about the relationship.

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TCA Information (continued)

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GL - Alternative Account

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GL Copy Journals

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Other GL Related Functionality

The open and close period program can be run from SRS and across multiple ledgers at the same time. FSGs can also be run across multiple Ledgers AutoPost and AutoReversal criteria can be shared across Ledgers. Enhanced security features including the ability to grant read only access to some set-up data. Oracle Advanced Global Intercompany System (AGIS) enhancements (new Schema = FUN)
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The Global Intercompany System (GIS) has become the Oracle Advanced Global Intercompany System (AGIS). Enhanced for this release, 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 partners account balances can be found quickly.

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Fixed Assets
Depreciation roll back for selected assets (instead of the whole book) to allow last moment transactions. MassAddition extensible public APIs is now also available to automatically prepare a mass addition line . Oracle XML Publisher now also supports major asset transaction reports.
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If depreciation has been run without closing the period and it becomes necessary to process financial adjustments on one or more assets, the user can now proceed with the transaction normally via the asset workbench or mass transactions. Oracle Assets will automatically roll back the depreciation on just the selected assets (instead of the whole book) and allows the transaction(s) to be processed normally. The asset(s) for which depreciation was rolled back is then automatically picked up during the next depreciation run or at the time that the depreciation period is finally closed. A set of extensible public APIs is now also available to automatically prepare a mass addition line for all required attributes such as depreciation expense account, asset category, location etc. with the goal of minimizing manual intervention by the user in the mass additions workbench. Oracle XML Publisher now also supports major asset transaction reports.

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Projects
Most discussions of Rel. 12 include PA.M; most of this functionality (available in 11i) has not yet been widely leveraged by the user community Project Portfolio Management is a new product in Release 12 of the Projects Suite.

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For those of you interested in Projects, Edward Charity, Jr. did an excellent presentation at OpenWorld, entitled From AutoAccounting/Account Generator to Subledger Accounting in Oracle Projects He mentions in that paper that the SLA would co-exists with AutoAccounting and Account Generator for Projects-related Transactions (for now) heralding further changes in Fusion. He also mentions that in R12 custom Sources replace SQL Select Functionality in AutoAccounting.

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Secure Enterprise Search (12.0.3)

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According to a recent blog entry from Steven Chan (http://blogs.oracle.com/schan), Secure Enterprise Search is now optionally available. Prerequisites for this optional integration are: E-Business Suite Release 12.0.3 Oracle Secure Enterprise Search 10.1.8.2.0 E-Business Suite SES Integration Patch 6512196 References: Installing Oracle E-Business Suite Secure Enterprise Search, Release 12 (Metalink Note 462377.1) Oracle Secure Enterprise Search 10g Datasheet (PDF)

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Report Manager
Review: When it was decided to move from a client server model for ADI to an entirely webbased model. There was a product split:
WebADI (data upload from spreadsheet etc) Report Manager for report submission and distribution of reports

Migration to a web-based model is now complete. Analysis Wizard provided via Account Analysis web-page
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Report Manager has now moved from a client server model to an entirely webbased model and all reports run through it are now generated in XML format. Output is stored in the Report Manager repository and only formatted when reports are published. Output formats now include PDF as well as Excel and HTML. Note: Marsha Edgell (chair of ADI SIG) will deliver a paper on webADI at the AUSOUG conferences. A similar presentation by the same author is also available from the OAUG archives (www.oaug.org).

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Reporting with BI Publisher

Approximately 400 modifiable formats in Financials:
Assets: 22 General Ledger: 14 Payables: 9 Payments: 120 Receivables: 10 Sub-ledger Accounting: 17 Tax: 10
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Further Information

2007 Jeannie Dobney & Graham Goodwin

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There is a host of new and / or changed functionality we have not even been able to touch on in this paper. For example Supply Chain enhancements: The IDC whitepaper mentioned earlier in this presentation notes that : Using Strategic Network Optimization tools companies can increase profits through asset rationalization by modelling the supply chain to determine optimal mix and location of facilities and equipment, and analysing scenarios via geographical visualization. Financial Consolidation Hub (FCH) that enables automated global financial consolidations from Oracle and non-Oracle sources. This tool provides multidimensional reporting and analysis and is part of the Performance Management product family (along with Enterprise Planning and Budgeting). Data Access Sets and Definition Access Sets also provide additional access control.

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Conclusions
Over 2,350 new features including some major changes Major change often requires time to mature Do the ROI calculations and be strategic You can go directly from 11i10 to Fusion If you dont have an up to date customisation register, start there! Dont underestimate the training and testing required
2007 Jeannie Dobney & Graham Goodwin

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Note that of the more than 2,350 new functions, approximately half are industry specific. On the topic of migrating customisations, refer also to Metalink Note 374398.1 Preparing Custom Development for Next EBS Release Solution Beacon published a helpful brief article on planning the migration of customisations in sunset technologies in their January 2007 newsletter. Their recommendations included moving away from Oracle Reports towards XML Publisher. There is also an excellent follow up in the October newsletter; in summary: Forms 6i in 11i Forms 10g in 12: Customisations should migrate Forms personalisations should migrate but will depend on changes in the underlying form; Read Metalink Note 395117.1 Reports Server has been dropped in 12 and the direction is BI Publisher, recommendation: migrate towards BI Publisher Personal Homepage can still be used in 12 (!) but only Framework mode is supported; Read Metalink Note 395445.1 (Recommendation is to use Framework mode) Alerts are alive and well in Release 12 but must be tested during the migration If you do not wish to go to Release 12 there are a host of things you can do now to transition towards Fusion, e.g. starting to use BI Publisher and BPEL. Things which may be flushed out by testing include for example the shift from controlling access to concurrent request logs and output files, which was controlled by profile options in Release 11i but in 12 is controlled via grants in User Management. For excellent coverage of this refer to the October edition of the Solution Beacon Newsletter.

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Recent Post on OAUGNet

On the Openworld 2007 'eBusiness Suite 12i Upgraders Group', this was recently posted: " Oracle is closely tracking all activity around customers working on Release 12. There are currently 15 customers live on Release 12, and you are correct in that most are new implementations. The are over 120 customers that are actively working on implementing/upgrading to Release 12 that are working closely with Development/Support. There will be a session at OOW dedicated to talking about the momentum on Release 12 called: Oracle E-Business Suite Release 12: The Momentum Continues. 2007 Jeannie Dobney & Graham Goodwin GGC
Post was from 6th November 2007 In general from the chatter on OAUGNet it seems that new implementations are finding R12 quite stable. In an OpenWorld presentation entitled Oracle EBS Financials Release 12 and Beyond Terrance Wampler (VP Financials Product Strategy) presented the following information in a slide entitled: E-Business Suite Release 12 Momentum 1,600+ customers downloaded software 900+ customers actively engaging Support 130+ customers proactively tracked by Development As of November 6, 2007 20+ customers live

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