Highlights of the New Features in Oracle E-Business Suite Financials Release 12 Terrance Wampler Financials Strategy
The following 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 Oracle’s products remains at the sole discretion of Oracle.
Global Architecture 3rd Party Systems
Multiple Ledgers General GeneralLedger Ledger
1 Centralized Architecture
Drilldown
2.1
Centralized Accounting Model, Rules, Engine and Repository
Banking
Inventory
Work in Process
Intercompany Accounting
Global Tax
Receivables
Purchasing
E-Business Suite E-Business
Projects
Payables
2
Accounting Policies
2.2
Bank Model
2.3
Tax Engine
2.4
Intercompany
3
Role-Based Access to Operating Units
R12 Highlights – And the categories are…
QUESTIONS ANSWERS
Advanced Collections in R12 Improved Processing
CAPABILITY
BENEFITS • Visibility
• Shared Services Support
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• Collection Territories
of Customer Information across Operating Units
• Independent
from Sales
Territories • Improved
• Centralized Functions
• Payments Integration
Compliance • Collections Workbench from AR merged • Collect
Real-Time with Funds Capture
Advanced Collections in R12 Simplified Setup
Question & Answer Type Setup
Advanced Collections in R12 Simplified Setup - Checklist
Payables & Receivables Netting Reduce Costs in Trading Relationships
AR Invoices Customer
#203
$500
#460
$600
Receipt $800 Netting
AP Invoices Supplier
#699
$400
#982
$400
Payment $800
Netting in R12 Benefits
CAPABILITY
BENEFITS
• Reduced Costs • Offset Payable & Receivables
• Reduced Bank Charges • Fewer Transactions
to Process • Cashflow Improvement
• Trading Partner Approval
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• Insured Consistency
Eliminate Accounting Errors Alternate Accounts Replace Disabled Accounts
Definition Access Sets
Accounting Calendars AutoAllocations AutoPost Criteria Sets
Controller
AutoReversal Criteria Sets Budget Formulas
Accountant Privileges
Use
Modify View
Budget Organizations Chart of Accounts Mappings Consolidation Definitions
Revaluations
Consolidation Sets Elimination Sets
Allocations
FSG Reports and components
Rate Types
MassAllocations MassBudgets
Elimination Sets
Rate Types Recurring Journals Revaluations
Introducing Ledger Sets Implement Processing Efficiencies
• Open/Close Periods • Create Journals • Translate and Revalue Balances • View Information • Submit Standard Reports • Submit Financial Statements
E-Business Suite Financials Introducing Advanced Global Intercompany
Advanced Global Intercompany
•Centralized Solution •Integration with Receivables & Payables •Flexible Approval Rules •Based on Legal Entities •Online Reconciliation Tools
Advanced Global Intercompany System Completely Integrated System 3 1 2
1
Enter Transaction
2
Send Transaction 3 Approve Transaction (or reject)
4 3
Create AR Invoices 4 Create AP Invoice – or –
4
5
4 – or –
5
– or –
5
Create GL Journal 5 Create GL Journal
Bank Accounts Centralized User Interface 11i:
12:
Cash CashMgmt Mgmt Payables Payables
Cash CashMgmt Mgmt Payables Payables Bank Bank Accounts Accounts
TCA TCA
Payables Payables
Banks Banks
Receivables Receivables
Bank Bank Accounts Accounts
Payroll Payroll
Receivables Receivables
Payroll Payroll
Payroll Payroll Bank Bank Accounts Accounts
Treasury Treasury
Treasury Treasury Bank Bank Accounts Accounts
Treasury Treasury
Bank Accounts Benefits Achieved from Centralized Accounts
CAPABILITY
BENEFITS
• Centralized User Interface &
• Improved Control • Improved Data Integrity
Data Model
• Legal Entity Association
(No Operating Unit Redundancy)
• Improved Visibility • Simplified Reconciliation
• Increased Percentage of • Flexible Reconciliation
Parameters
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Automatically Reconciled Transactions
Cash Management Enhancements in EBS R12 Financials
CAPABILITY
BENEFITS
• Centralized Balances &
• Improved Visibility
Interest • Interest Calculator
• Verification of Bank Interest
• Bank Account Transfers
• Track Bank Transfers
• Improved Reporting
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• XML Publisher Enabled • Visibility of Actual vs. Projected
Oracle Receivables in R12 Accelerate Cash and Manage Revenue with Fiscal Discipline
Capabilities
Benefits
• Revenue Policy Compliance
• Systematic Fiscal Discipline
• Automated Late Charges
• Increased Cash Flow and
Streamlined Processing
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• Line Level Cash Application
• Better Visibility
Accelerate the Cash Cycle With Improved Efficiency and Visibility Automated, Flexible Late Charges Improve Efficiency
Better Visibility with Line Level Cash Application
Automate Revenue Recognition Recognize Revenue Based on Rules and Events Time-Based Revenue Recognition • Ratably Over Time • Upon Expiration of Contingencies
Event-Based Revenue Recognition • Payment • Customer Acceptance
Rule-Based Revenue Recognition • Payment Term Thresholds • Refund Policy Thresholds • Customer Creditworthiness
Centralized Balancing Routine Supporting Intercompany & Intracompany In 11i: • Balancing Journal Entries generated at posting time by the General Ledger Posting routine In R12, the Balancing Routine: • Generates balancing accounting entries for subledger journal entries at time accounting is created • Generates balancing journal entries at posting time for all other journals
Balancing Intercompany & Intracompany 02.Expense 03.Expense
100
01.Expense
200
02.Intracompany
100
Company B
Co. A
03.Intracompany BS V
01
300
BS V
02
BS V
100
03
02.Intercompany 01.Intercompany
200 200
Balancing Intercompany & Intracompany
CAPABILITY
BENEFITS
• Centralized Account Definition
• Improved Control • Simplified Setup
• Centralized Balancing Engine
• Intercompany & Intracompany
Support
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• Consistent Accounting • Simplified Reconciliation • Increased Visibility
• Compliance • Improved Reconciliation
Business Reporting Requirements Complex & Diverse • • • • • • • • • •
High Fidelity Reports Partner Reports Financial Statements Government forms Marketing materials Contracts Checks, Labels XML EFT / EDI Multiple destinations
Checks Invoices
Labels
Destinations
Reports
XML / EFT / EDI
XML Publisher Making Reporting Manageable
Separate data / layout / UI translation Data Logic XML Publisher
Report output
Layout Translation 9Flexibility 9Reduced maintenance
One Solution for all Business Documents
Financial Reporting with XML Publisher Nearly 400 Modifiable Formats Product
Formats
Product
Formats
Assets
22
IT Audit
2
Cash
3
Loans
6
Collections
15
Payables
9
Common Modules
10
Payments
120
Financials Consolidation Hub
21
Public Sector
6
General Ledger
14
Receivables
10
Globalizations
92
Subledger Accounting
17
Internal Controls Manager
25
Tax
23
Internet Expenses Productivity Enhancements CAPABILITY
• Improved Approvals
• Barcoding
• Improved Auditing
Functionality
BENEFITS
• Quicker Approvals through
Parallelization • Increased control over costs • Improved Processing
Efficiencies
• Usability Enhancements
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Copyright © 2006, Oracle. All rights reserved.
Internet Expenses Barcode Enabled
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Internet Expenses Usability Enhancements
Activity Based Tabs
Receipt Verification
Copyright © 2006, Oracle. All rights reserved.
New to Payables
CAPABILITY
BENEFITS
• Invoice Lines
• Improved asset tracking • Line level approvals • Matching to a PO shipment or receipt • Suppliers in TCA
(No Operating Unit Redundancy) • Contract Financing and
Retainage for Complex Services
• Improved integration • Enhanced Approvals
• One setup per supplier • Features of TCA • Seamless integration with
purchase contract T’s and C’s
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Copyright © 2006, Oracle. All rights reserved.
Payables Invoice Lines and Enhanced Asset Tracking
Select OU
View or Enter: Item Description Manufacturer Model • Item Description Serial Number Warranty Number
• Manufacturer
• Serial Number
Copyright © 2006, Oracle. All rights reserved.
Payables Suppliers in TCA Payables Purchasing
Suppliers
Payments
Global Tax
Geographies
Party Information
Cash Management
Banks and Branches
Trading Community Architecture Oracle Fusion Middleware
ERP
CRM
Copyright © 2006, Oracle. All rights reserved.
3rd Party
Payables Services Procurement Progress Payment Schedule Define Progress Payment Schedule
Specify Pay Item Number, Type: • Rate • Lumpsum • Milestone
Copyright © 2006, Oracle. All rights reserved.
Describe Work Component & Payment
Payables Services Procurement Progress Payment Invoices 9 As progress is made on the work, the supplier continues to submit work confirmations, work is approved, invoices are generated, and retainage is withheld
Approved
Billed
Retained
Advance
Advance 50,000
Resurface Lot
200,000
200,000
Road Work
500,000
500,000
Landscape
250,000
250,000
Final Painting
50,000
50,000
< 5,000>
1,000,000
1,000,000
Copyright © 2006, Oracle. All rights reserved.
0
New Product: Oracle Payments
CAPABILITY
BENEFITS
• Central Engine for Payment
Disbursement and Funds Capture
• Global payment solution
• Format Library •
Out-of-the-box formatting
•
XML Publisher Integration
•
Make Edits with MS Word
• Reduced complexity • Fewer files to transmit • Simplified implementations • Lower cost of ownership
• Secure Repository for Credit
Cards and Customer/Supplier Bank Accounts
• Improved data security
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Copyright © 2006, Oracle. All rights reserved.
Oracle Payments Single Point of Integration with Financial Institutions
Financial Institutions
Oracle Payables
Oracle Payments Other applications
Oracle Receivables
Copyright © 2006, Oracle. All rights reserved.
Print Payments
Oracle Payments Funds Disbursement Payment File
Oracle Payables User
Payment Build Pool of Built Payments Payment File
Select Invoices
Less effort, fewer files to transmit or print Copyright © 2006, Oracle. All rights reserved.
Oracle Payments Funds Capture
Request
Authorization
Settlement
Acknowledgement
Replaces and expands iPayment functionality
Copyright © 2006, Oracle. All rights reserved.
Oracle Payments Formatting with XML Publisher
XML Publisher
Data Sources
Publishing Engine
XML
Output Formats PDF RTF
HTML XML
EDI
Disbursements Credit Card Payments Direct Debits
Destination • Email • Printer • Fax • FTP • AS/2
Templates
Remittances
Business User
Copyright © 2006, Oracle. All rights reserved.
Checks
Remittance Advice
Fund Transfers
EFT Payments
Credit Card Auths
Payment Reports
User Experience Highlights Six worldwide Usability Studies: 16 customers 57 participants Recommendations: •Re-design and streamlining •Reduction in the number of steps •Overall look & feel improvements
Results: Significant Improvements • • • • •
Collections Setup Payments Loans Applications Setup Manager (ASM) Financial Consolidation Hub (FCH)
Copyright © 2006, Oracle. All rights reserved.
Disbursement Dashboard
Pending Actions Common Actions
BI/Analytic Graphics
Copyright © 2006, Oracle. All rights reserved.
General Ledger Setup in 11i
Copyright © 2006, Oracle. All rights reserved.
Accounting Setup Manager Single Page for Accounting Setup •Legal Entities •Ledgers •Currencies •Balancing Segments •Subledger Accounting •Operating Units •Balancing Options
Copyright © 2006, Oracle. All rights reserved.
