Emerging solutions demystifying_r12_financials-5-28_webcast

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Introduction to Emerging Solutions

• Professional Services firm, Founded in 1997• We provide:

– Strategy / Guidance / Software Selections– Implementation, Upgrades & Integration Services

• Oracle Certified Advantage Partner Microsoft Gold Partner

• Oracle Specialties:– Oracle E-Business Suite– Oracle Transportation Management– Demantra– Hyperion Planning, HFM and Strategic Finance– PeopleSoft Enterprise Applications , HCM & FSM

• Offices: Chicago, Minneapolis (National delivery capabilities)

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Introduction

Octavio PeralesOracle National Practice Director, Emerging Solutions

Stan KorwinChicago Oracle Practice Lead, Emerging Solutions

Demystifying Oracle R12 Financials

Presented by

Stan Korwin

May 29, 2008

Agenda

• What is different about R12 Financials?

• What is good and not so good about the

changes?

• What do I need to worry about for upgrade?

• Q & A

What is Different about R12 Financials?

• “Halfway to Fusion”

• Foundational restructuring to

support globalization

• Improved Interface

R12 Financials StructuresR12’s globalization approach has restructured six key foundational dimensions of EBS financials by consolidating functionality into separate layers. These layers now underlie all of the applications.

•Ledgers/Ledger Sets•Multiorg/MOAC/Legal Entity•Subledger Accounting•E-Business Tax Engine•Intercompany•Cash/Banking Management

Global Financial Management

Shared services and single database operations with streamlined processing, reporting, and access across operating units

SingleGlobal

Database

SingleGlobal

Database

Shared Service Center

Org 3Org 2Org 1

Examples: Payables, Purchasing, Collections, HR

Shared Serviceswith R12Financial ManagementInitiatives

Think Work Manage

Global Financial Architecture

BankBankModModelel

Tax Tax EngineEngine

InterInterCompanyCompany

General Ledger General Ledger Ledger & Ledger Ledger & Ledger Sets Sets

General Ledger General Ledger Ledger & Ledger Ledger & Ledger Sets Sets

Subledger Accounting (SLA) Subledger Accounting (SLA) Subledger Accounting (SLA) Subledger Accounting (SLA) DrDr CrCr

Projects

Projects

Receivables

Receivables

Inventory

Inventory

Work in ProcessWork in Process

Purchasing

Purchasing

Payables

Payables

Multi-Multi-OrgOrg

AccessAccessControlControl

Multi-Multi-OrgOrg

AccessAccessControlControl

6 Major Initiatives

1. Ledger and Ledger Sets

2. Multi-Org Access Control

3. Subledger Accounting

4. Tax Engine

5. Intercompany

6. Bank Model

MOAC In Action

Setup – Define Security Profile

Select OU Classification

Setup – Define Security Profile

Select OU Classification

Reporting Across

OUs

Reporting Across

OUs

Selectingone or allOUs in an AP action

Selectingone or allOUs in an AP action

Legal Entity SetupDescription

Support for Registrations

Single Legal Entity Data Model

Support for Establishments

Legal Entity IN 11i Legal Entity IN R12.0

HR Organization - GRE/LE (General Reporting Entity/Legal Entity)

HR Organization – Operating Unit (OU)

HR Organization – Inventory Org (IO)

SOB (Set of Books, Ledger in 11i11)

BSVs (Balancing Segment Values)

Customer account sites and site uses

Reporting Entities

Legal Entity SetupDependencies and Interactions

Legal Entity

GL

Dat

a M

od

elA

pp

licat

ion

s

TCA Intercompany

E-Business Tax

Legal Reporting

to enable…APARIBY

APIs and UIs

CE

Legal Entity provides a foundation

Legal Entity Configurator

Oracle Subledger Accounting Integration

Release 11iAccounting model and transaction model are tightly integrated

Release 12.0Accounting model is separated from the transaction model

Subledger Products

Projects

Payables

Receivables

General Ledger

Subledger Products

Projects

Payables

Receivables

Subledger Accounting

AR Rules &journal entries

PA Rules &journal entries

AP Rules & journal entries

General Ledger

Introduction to Subledger Accounting Accounting Methods Builder

FR Statutory Ledger

Standard IAS Subledger Accounting Method

Payables Application Accounting Definition

Journal Line Types

Account Derivation Rules

Journal Entry Descriptions

Payment Journal Line Definition

Transaction Objects

Sources

SLA

Introduction to Subledger AccountingDependencies and Interactions

Transactions

Accounting Events

Subledger Application

AccountingConfigurations

Journal Entry Setup

AccountingProgram

SubledgerBalances

SubledgerJournal Entries

GLJournal Entriesand Balances

General Ledger

Tax Transactions

Tax Transactions

Taxes,RulesTaxes,Rules

Oracle E-Business Tax Processing taxes for transactions and reporting

DetermineRegimes

TaxableBasis

CalculateTax

Amount

Tax Status& Rate

ApplicableTaxes

Single Interface for TransactionsSingle Interface for Transactions

Transparent Integration with Tax Partner ServicesTransparent Integration with Tax Partner Services

PartiesParties

PlacesPlaces

ProductsProducts

ProcessesProcesses

Payables

Receivables

Purchasing

Transactions

Sales Orders

…Tax Reports

- PDF, HTML, RTF- Security enabled

Extensible Service Oriented Architecture

Compliance, Assurance Efficiency, Global Visibility

Tax Authority Tax Regime Tax

California State Board of Equalization

California Sales Tax State Sales Tax California (State)

HM Customs and Excise (U.K.)

UK VAT UK VAT UK

Canadian Customs and Revenue Agency (Canada)

Canadian Goods and Services Tax

GST Ontario

Federal (Brazil) Secretaria da Receita

RICMS - Regulamento do ICMS

CMS São Paulo

Oracle E-Business TaxKey Concepts

Tax Jurisdiction

Web UIWeb UI

Open Open Interfaces / Interfaces /

APIAPI

Excel Excel

(Web ADI)(Web ADI)

Advanced GlobalIntercompany

System

Advanced GlobalIntercompany

SystemSubledgerSubledgerInvoices &Invoices &DocumentsDocuments

Generate subledger invoicesGenerate subledger invoices

Control transaction entry with Control transaction entry with Intercompany CalendarIntercompany Calendar

Fully Configurable Approval RulesFully Configurable Approval Rules

Flexible Security ModelFlexible Security Model

Centrally defined Intercompany Centrally defined Intercompany AccountsAccounts

Online Online Reconciliation Reconciliation

ReportingReporting

XML XML Publisher Publisher ReportsReports

Advanced Global Intercompany System

Subledger Subledger AccountingAccountingSubledger Subledger AccountingAccounting

DrDr CrCr

General General Ledger Ledger ReceivableReceivable

ssReceivableReceivable

ssPayablePayable

ssPayablePayable

ss

• Bank account is now associated with LE entity rather than

Operating Unit

• Single bank account serves multiple Operating Units

• Any and all Operating Units

associated with a ledger can be

permitted to use the bank account

AssetsAssets

Projects

Projects

Receivables

Receivables

PayablesPayablesPurchasing

Purchasing

Projects

Projects

Receivables

Receivables

PayablesPayables

InventoryInventory

PlusCentralized Credit Card

ModelCredit Card EncryptionSupplier & Customer

Banks in TCA

Centralized BankingShared Services Disbursements

Work in Work in ProcessProcessWork in Work in ProcessProcess

LE

OU A OU B OU C

A New User Experience for R12

• Reduced pop-ups and duplicate screens

• Re-designed and streamlined entire workflows

• Reduced the number of steps to complete key tasks

• Improved overall look & feel and visual style

• Increased personalization capabilities

• Campaign Management• Customer Support• Collections & Payments• Loan Management

Improved Workflow in Targeted Areas

• Financial Consolidation• Online Candidate Registration• Absence Management• Salary Administration

• Self-Service Purchasing• Sourcing• Supplier Collaboration• Business Intelligence

Think Work Manage

One dashboard (R12) vs. multiple steps across many forms (11i)

Assign/view legal entitiesAssign/view legal entities

Define ledger (set of books)Define ledger (set of books)

Define operating unitsDefine operating units

Define legal entities dashboardDefine legal entities dashboard

Accounting Setup Manager

Accounting Setup Manager

Accounting Setup Manager-Organization

Tax Managers

New Look for Standard Reports

Daily Results,Daily Results,Flexible PeriodsFlexible Periods

Flexible ComparisonsFlexible Comparisons

MultipleMultipleCurrenciesCurrencies

Graphs /Graphs /TrendsTrends

PerformancePerformanceMeasures (KPIs)Measures (KPIs)

Real-Time Operational Reporting

Reports w/Reports w/DrilldownDrilldown

• Out-of-the-box mgmt reporting system

• Role-based dashboards

• Seamless drilldowns

• New in R12:- 6 dashboards, 49 KPIs, 90 rpts

- A focus on global sourcing, spend, and supplier mgmt

Drag & DropDrag & DropPortletsPortlets

Think Work Manage

Diagnostics Tools

Diagnostic Tools-cont’d

What is good and bad about the changes?

GOOD

• “Globalized” features more flexible

• Navigation more intuitive

• New wizards are extremely helpful for setup

• Enhanced diagnostics are more useful

What is good and not so good about the changes?

GOOD

• New structures allow much greater flexibility for organizations with complex organizational structures

• Better ability to accommodate organizational changes

• New interface does navigate more easily

What is good and not so good about the changes?

NOT SO GOOD

• System documentation still in “catch up” mode

• Bugs – though improving

• Dual navigation methods annoying and sometimes confusing

What Do I Need To Worry About For Upgrade?

• Think carefully about foundations– Organization structure– Tax jurisdictions– Legal Entities– Security, roles and responsibilities

• Be prepared to relearn some concepts

• Confirm hardware capacity

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Next Steps

Contact Emerging Solutions for a complimentary R12 Upgrade Workshop

Utilizes proven analytical tools and our extensive industry expertise to identify quantifiable improvements in your transportation operations and to your bottom line.

www.emergenow.com/R12-Workshop

Question and Answers

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Additional Questions?

Contact

Stan [email protected]

www.emergenow.com