Oracle Release 12 – Awareness Session

Finance Track
Location: Hyderabad

Date: February 18th, 2008

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Agenda

R12 : New Financial Architecture:

 Ledger & Ledger Sets

 Oracle Legal Entity Configurator
 Accounting Set Up
 Multi Org Access Control - MOAC
 Multi Currency Support
 Sub Ledger Accounting - SLA
 Oracle E-Business Tax (EB Tax)
 Centralized Business Functions
 Centralized Bank Model
 Intercompany Processing using Advanced Global
Intercompany(AGIS)

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Comparison of General Ledger in 11i vs R12

11i Release 12
1. Set of Books 1. Ledger
2. 3Cs – Calendar, Chart of 2. 4Cs – Additional C :
Accounts & Currency aCcounting method
3. Global Accounting Engine 3. Sub ledger Accounting
(SLA)
4. Global Intercompany 4. Advanced Global
System(GIS) Intercompany System
(AGIS)
5. Intercompany Accounts 5. Intracompany Balancing
6. MRC Primary Set of Books 6. Primary Ledger
7. MRC Reporting Set of
Books 7. Reporting Currency

8. Multiple-Posting Set of 8. Secondary Ledgers

Books (Global Accounting
Engine)

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R12 : New Financial Architecture - Overview

Enable users to perform

certain operations for
multiple ledgers

Centralized – Accounting,
Tax Engine, Bank Model &
Intercompany Model

Enable users to perform

operations for multiple
Operating Units without
switching responsibilities.

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 Multiple Ledgers 1
More Efficient Period-end Processing
Must Share:
Ledger Set Chart of Accounts
Calendar

Ledger C

US GAAP
US COA
Ledger B Ledger A US Calendar
French Rules US GAAP Defined by 4 C’s: USD
Plan Comptable US COA • Accounting
French Calendar US Calendar Convention
EUR EUR • Chart of Accounts Ledger D
• Calendar US GAAP
• Currency US COA
US Calendar
GBP
Ledger Set Benefits:
• Cross/Multiple Ledger processing and reporting
• Data and definitions that can be shared and secured
• Native support for multiple accounting representations Reporting Currency

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Multiple Accounting Representations
Parallel Financial Reporting
1 + 2.2

Ledger B Ledger A
French Rules US GAAP
Plan Comptable US COA
French Calendar US Calendar
EUR EUR

Dr Cr

Centralized
Accounting Single business transaction
can create multiple
accounting representations
and in multiple currencies

Payables Invoice

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Multi Org Access

Functionality Business Benefits

 Allows user to access, process, and report on data for an  Improve Efficiency
multiple operating units within a single applications  Better information for decision
responsibility. making
 Data security and access privileges using profiles.  Shared Service Center Enabling
 Gain Productivity Savings using
economies of scale, hence
reducing costs

Simplify Superior
Process Ownership
Experience

MOAC

Centralize &
Global Standa
Accounting rdize
Data

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Multi Org Access

Functionality Steps

Security Profiles for data security  Setup: Define Security

 MO: Security Profile
 List of operating units for a responsibility
 Defined in HR/FA
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 ► Enhanced Reporting
processes
 OU parameter on other standard reports and processes
 For example: submit the Payables Open Interface Import
w/OU Para null to import all records across all OUs

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Sub-Ledger Accounting (SLA)

Functionality Business Benefits

 Allows multiple accounting representations for a single  Centralized Rules & Policies
event.  Centralized Accounting definitions
 Ex. A purchase transaction can be simultaneously accounted for  Improved Internal controls and
an increment to inventory for US GAAP or IAS/IFRS accounting,
and as also a debit to the P&L for local compliance accounting.
compliance
 Enhanced Reporting Currency Functionality.  Improved reconciliation and
reporting
 Streamlined closing process
 Auditable and transparent entries

Simplify Superior
Process Ownership
Experience

SLA

Centralize &
Global Standa
Accounting rdize
Data

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Centralized Banking and Payments 2.3
Funds Disbursements and Capture

• Bank account is now

associated with LE entity
rather than Operating Unit
LE
• Single bank account serves
OU A OU B OU C multiple Operating Units
• Any and all Operating Units
associated with a ledger can
be permitted to use the bank
account

Inventory Receivables Projects

Plus
Work in Process Purchasing Payables Assets
 Centralized Credit Card Model
E-Business Suite
 Credit Card Encryption
 Supplier & Customer Banks in TCA
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 Example: Shared Service Disbursement

OU A

OU B

Centralized
Accounting

OU C Single
Payment Bank Payments
Instruction
1. Setup accounting policies
2. Select invoices from multiple OUs
3. Format for bank and disbursement
countries
Invoices
4. Send single instruction to bank
5. Generate separate payments for
each OU
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 Centralized Intercompany 2.5
Faster Period-End Close

Advanced Global
Intercompany
System
Subledger
Invoices &
Manual Documents
Entry

Open
Interfaces /  Generate subledger invoices
API Online
 Control transaction entry with Reconciliation
Intercompany Calendar Reporting
Excel  Fully Configurable Approval
(Web ADI) Rules
 Centrally defined Intercompany XML
Accounts Publisher
 Transaction-level balancing Reports

Dr Cr

General Subledger
Ledger Accounting Receivables Payables

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R12: SLA vis-à-vis Global Accounting Engine in 11i

11i Release 12
 Functionality available only in  SLA extends and replaces the
France, Greece, Italy, Spain, Global Accounting Engine
or Portugal as Oracle Global functionality used across all
Accounting Engine. Oracle E-Business Suite sub
ledger applications.
 Posting Manager program  New Create Accounting
program.
 Oracle Financial Services
Accounting Hub to create sub
ledger accounting for third-
party applications.
 This allows you to take
advantage of the full potential
of the Oracle Sub ledger
Accounting engine to
generate accounting journal
entries in a consistent way
across your Oracle and third-
party applications.

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SLA Features in R12 as compared to 11i

11i Release 12
►Separate process to post in ►Single process to post in primary,
primary, MRC and secondary reporting (MRC in 11i) and
GLs secondary GLs
►MRC only for primary ledgers ►Reporting currencies can be
►Different account derivation rules assigned to primary and
across modules secondary ledgers
►Accounting rules defined for each ►Uniform account derivation rules
operating unit across modules
►No track of change in application ►Accounting rules defined for the
accounting rules Chart of Accounts / GL
►Cannot verify correctness of ►Date tracked application
account derived prior to posting to accounting definitions
GL ►Draft accounting to verify
►Require technical / DBA support correctness of account derived
for SQLs / Workflow account ►DBA support not required for
generator change in account derivation
►Single representation of each rules
transaction ►Multiple accounting
representation of single
transaction

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Currency in R12

11i Release 12

1. Functional Currency 1. Accounting Currency

in Primary Ledger
 Functional Currency term
dropped: conflicts with IAS 21 /
FAS 52
2. MRC Currency
2. Reporting Currency
in Primary Ledger

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Centralized Bank Model

Functionality Business Benefits

 Bank account is now associated with LE entity rather than  Promote Shared Service
Operating Unit Processing
 Single bank account serves multiple Operating Units  Single Payment Instruction for
 Any and all Operating Units associated with a ledger can be payments pertaining to multiple
permitted to use the bank account OUs in multiple currencies.
 Centralized Credit Card Model
 Credit Card Encryption
 Supplier & Customer Banks in TCA

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Cash Management Centralized User Interface

11i Release 12

Cash Mgmt
Cash Mgmt
Payables
Payables Bank Accounts Payables
TCA

Receivables Receivables
Banks
Payroll
Payroll Bank Accounts Payroll
Banks
Accounts
Treasury Treasury Treasury
Bank Accounts

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Oracle Payments – Replaces iPayment

Functionality Business Benefits

 Central payment engine for E-Business Suite payments  Out-of-the-box integration with
 Configurable formatting framework leading payment processors
 Flexible validation model  Flexible support for various
 Secure payment data repository Business Payment Models
 Seamless electronic payment transmission  Process Visibility using
Dashboards.
 Credit card support – validation, authorization and settlement
 Better Working Capital
 PINless debit card transactions Management.
 Open, extensible interfaces for integrating with other  Payment Processing Factory-
payment systems Enable Shared Service Centers.
 Simplified Bank Reconciliation
 Reduce Costs with Streamlined
Processes.

Simplify Superior
Process Ownership
Experience

Tech

Centralize &
Global Standa
Accounting rdize
Data

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Oracle Advanced Global Intercompany System (AGIS)

Functionality Business Benefits

 Enhanced Intercompany and Intracompany Balancing  Enables adhering statutory &
features corporate standards for processing
 Automatic creation of payables and receivables invoices for Intercompany transactions
Intercompany transactions  Provides interactive reconciliation
 Provides interactive reconciliation reporting which allows reporting
drilldown to the details of Intercompany Account Balances so  Centralized Solution
the source of discrepancies to the balances of each trading  Simplified Processes
partner’s account balances can be found quickly.
 Allows Drilldown.

Simplify Superior
Process Ownership
Experience

AGIS

Centralize &
Global Standa
Accounting rdize
Data

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 Q&A
End of Part -1

Contact Details:

Srinivasa Vellanki
Srinivasa.vellanki@genpact.com

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