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Safe Harbor Statement

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 decision. The

development, release, and timing of any features or functionality described for Oracle’s products remains

at the sole discretion of Oracle.

•• WhatWhat’’s on the mind of the CFO?s on the mind of the CFO?

•• How can Financials Release 12 How can Financials Release 12 help?help?

•• Why Upgrade?Why Upgrade?

•• Q&A Q&A

Agenda

GOVERNANCE, RISK & COMPLIANCE…Companies are under pressure to do more than just meet the letter of the law

INNOVATION AND GROWTH… Not just any growth, but growth that creates value

COMPLEXITY AND COSTS… Globalization brings complexity with it, and unnecessary complexity drives up costs

GLOBALIZATION…Today’s workforce, customers, suppliers, and competitors have all become global

Today’s CFO Agenda

50%Senior executives say simplification is driving the Finance agenda

33%Reducing reliance on spreadsheets

52%Optimizing the finance organization and its reporting structure

58%Adopting BEST PRACTICES

59%STANDARDIZING and integrating finance systems

66%STANDARDIZING policies and business rules

69%STANDARDIZING operating practices and controls

Major Focus

Source: PWC Management Barometer

Back to the BasicsConsolidate, Centralize, and Standardize




•• Q&A Q&A

Agenda

WORK GLOBALLYTo Be More Competitive

WORK GLOBALLYTo Be More Competitive

THINK GLOBALLYTo Make the Right Decisions

THINK GLOBALLYTo Make the Right Decisions

MANAGE GLOBALLYTo Lower Cost & Increase

Performance

MANAGE GLOBALLYTo Lower Cost & Increase

Performance

Oracle Financials Global Business Requirements

• Flexible, centralized, global accounting structure

• 300+ enhancements to best practice business processes

• Comprehensive governance, risk and compliance platform

Work better across applications, divisions, and regions

• Truly integrated performance management

• Real-time profitability analysis

• Unified financial and operational analytic applications

Achieve global view of customer, supplier, partner & operations

• Integration with core industry applications

• Self-service report formats and publication

• Superior ownership experience

Implement, manage, and scale global applications easier


WORK Globally

Global ArchitectureMore Control, Greater Flexibility, Lower Costs

ROLE BASED ACCESSto Operating Units

MULTIPLE LEDGERS

111

ACCOUNTING

BANK MODEL

TAX ENGINE

INTERCOMPANY

Centralized Architecture 222

LEGAL ENTITY2.1

2.2

2.3

2.4

2.5

ProjectsProjectsReceivablesReceivablesPayablesPayables

3rd Party Systems3rd Party Systems

Centralized Accounting Model, Rules, Engine and RepositoryCentralized Accounting Model, Rules, Engine and Repository

DrDr CrCr

InventoryInventory3rd PartySystems3rd PartySystems

General Ledger

Work in ProcessWork in ProcessPurchasingPurchasing

E-Business SuiteE-Business Suite

Banking Global Tax IntercompanyAccounting

Legal Entity

333

Multiple Ledgers More Efficient Period-end Processing

French RulesPlan ComptableFrench CalendarEUR

Ledger BLedger B

Ledger SetLedger SetLedger SetMust Share:

Chart of AccountsCalendar

Must Share:Must Share:CChart of Accountshart of AccountsCCalendaralendar

US GAAPUS COAUS CalendarEUR

Ledger ALedger A

UK GAAPUS COAUS CalendarGBP

Ledger DLedger DLedger D

Defined by 4 C’s:• Chart of Accounts• Currency• Calendar• Accounting

Convention

Defined by 4 CDefined by 4 C’’s:s:•• CChart of Accountshart of Accounts•• CCurrencyurrency•• CCalendaralendar•• Accounting Accounting

CConventiononvention

Reporting Currency

11

Ledger CLedger CLedger C

US GAAPUS COAUS CalendarUSD

US GAAPUS COAUS CalendarUSD

The balance on Creditors (COA) is 4.2M Eur (Currency)

on March 31, 2006 (Calendar) according to US GAAP definitions (Accounting Convention)

Ledger Set Benefits:• Cross/Multiple Ledger processing and reporting

•Open/close, entries and report totals/details as one• Data and definitions that can be shared and secured

Balance Use GL Consolidation to Transfer Balances

Journal Use GL Posting for Automatic Journal

Replication

AP ARFASubledger Use SLA for Automatic

Maintenance

Adjustments Only

Manual Adjustments in GL or Automated

Adjustments from SLA

Level of Detail Path to SL Path to RC

Use SLA (Full-MRC)

Use GL Posting (Thin-MRC)

Use GL Translation

Key Concepts and Terminology

Why We CareWhy We CareWhy We Care

• Tax• Registered companies calculate,

file, and pay the transaction taxes they owe

• Intercompany• Do business between and across

your registered companies with full legal documentation

• Bank Model• Registered companies use their

money to pay their bills, etc.• Accounting

• Assign books, bookkeeping rules and currency management to your registered companies

LE’s in Release 12LELE’’ss in Release 12in Release 12

Get the Legal Entity Right Compliance falls into place

• LEs pay the taxes• Need tax registrations

• Trade between LEs• Need intercompany

• LEs own the money and bank accounts

• LEs file the accounts• Takes care of accounting

2.12.1

Define Multiple Ledgersfor Rules & Currencies

Define Legal Entities& Associated Rules

One Place to manageGlobal AccountingRules, Currencies,

Ledgers,And Ledger Sets

Set Accounting Rulesfor All EBS Apps

Centralized Set-upAccounting Setup Manager

Ensure Complete & Accurate

Setup via Online Checklist

Define Legal Entities& Associated Rules

Centralized Accounting PoliciesGreater Control, Transparency and Auditability

2.22.2

ProjectsProjectsReceivablesReceivablesPayablesPayables

3rd Party Systems3rd Party Systems

InventoryInventory3rd

PartySystems

3rd Party

Systems

General Ledger

Work in ProcessWork in ProcessPurchasingPurchasing

E-Business SuiteE-Business Suite

• Internal control and compliance with multiple accounting policies through user-defined accounting rules

• Single source of truth for all subsystem accounting activity with a common data model and repository

• Accounting, reconciliation and reporting facilitated by centralized data model

• Streamline closing processwith common posting engine

• Auditable and transparent entries accessible with full drilldown

Banking Global Tax IntercompanyAccounting

Legal Entity

Centralized Accounting Model, Rules, Engine and RepositoryCentralized Accounting Model, Rules, Engine and Repository

DrDr CrCr

Centralized Accounting PoliciesSLA and parallel financial reporting

2.22.2

• Internal control and compliance with multiple accounting policies through user-defined accounting rules

• Single source of truth for all subsystem accounting activity with a common data model and repository

• Accounting, reconciliation and reporting facilitated by centralized data model

• Streamline closing processwith common posting engine

• Auditable and transparent entries accessible with full drilldown

US GAAPUS GAAPUS COAUS COAUS CalendarUS CalendarEUREUR

Ledger ALedger AFrench RulesFrench RulesPlan ComptablePlan ComptableFrench CalendarFrench CalendarEUREUR

Ledger BLedger B

Centralized AccountingCentralized Centralized AccountingAccounting

DrDr CrCr

Payables InvoicePayables InvoicePayables Invoice

Single business transactioncan create multiple

accounting representationsand in multiple currencies

Single business transactioncan create multiple

accounting representationsand in multiple currencies

Primary Ledger EUR

Reporting Ledger USD

Secondary Ledger

• 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

ProjectsProjectsReceivablesReceivables

PayablesPayablesPurchasingPurchasing

ProjectsProjectsReceivablesReceivables

PayablesPayables

InventoryInventory

PlusCentralized Credit Card ModelCredit Card EncryptionSupplier & Customer Banks in TCA

Centralized BankingShared Services Disbursements

Work in ProcessWork in Work in ProcessProcess

LE

OU A OU B OU C

2.32.3

Bank Model: Example of what you can doPay invoices from different OUs with 1 instruction

OU A

OU B

OU CBank

Single Payment

Instruction

Invoices

Payments

Sub Ledger AccountingSub Ledger Sub Ledger AccountingAccounting

• New Payments Module• New Bank Module• New Bank & Credit Card

Features

Decentralized, centralized or SSC modelInvoice Selection

Operating UnitVision Spain

Invoice Entry Payment Processing



Operating UnitVision Italy



Invoice Selection








Invoice Selection

Vision Spain


Shared Service Center Shared Service Center

Vision Italy

Shared Service Center

InvoiceItaly

InvoiceSpain

Invoice Selection

Vision Spain


Shared Service Center Shared Service Center

Vision Italy

Shared Service Center

InvoiceItaly

InvoiceSpain



Euro security profile:Vision Spain +

Vision ItalyOperating Unit

Vision Italy

Invoice Selection





Euro security profile:Vision Spain +

Vision ItalyOperating Unit

Vision Italy

Invoice Selection



Centralized Global TaxLess Complex Global Tax Compliance

Operational Efficiency

• Automated processing based on predefined tax rules• Simplified tax configuration (shared across legal entities and Oracle apps)• Standard services to all eBusiness applications• Integration with external tax vendors (Taxware and Vertex in the U.S.)

BenefitsBenefits SolutionSolution

Global Management, Local Compliance

• Single data model for rules and transactions across geographies and applications

• Centralized tax repository provides global visibility• Self-Service for Tax Managers

Information Visibility

• Tax reporting ledger provides single source of the truth and complete auditability

• Configurable tax reporting templates• Tax simulator for setup, rules, and transactions

2.42.4

Oracle eBusiness TaxDetermining Factor (4P) Classes

* This Determining Factor Class contains Determining Factors for several Ps.

Party • Legal Party Fiscal Classification

• Registration

• Party Fiscal Classification

• Transaction Input Factor *

Process • Document• Transaction Fiscal

Classification• Transaction Generic

Classification • Accounting

Event • Transaction Input

Factor *

Product • Product -Inventory Linked

• Product - Non-Inventory Linked

• Transaction Input Factor (Intended Use, Product Override)*

Place

• Geography• User Defined

Geography

Tax Transactions

Tax Transactions

Taxes,RulesTaxes,Rules

Oracle E-Business TaxProcessing taxes for transactions and reporting

DetermineRegimes

TaxableBasis

CalculateTax

AmountTax Status

& RateApplicable

Taxes

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

Manual Manual EntryEntry

Open Open Interfaces / Interfaces /

APIAPI

ExcelExcel(Web ADI)(Web ADI)

Advanced GlobalIntercompanySystem (AGIS)

Advanced GlobalIntercompanySystem (AGIS)

SubledgerSubledgerInvoices &Invoices &DocumentsDocuments

Generate subledger invoicesGenerate subledger invoicesControl transaction entry with Control transaction entry with Intercompany CalendarIntercompany CalendarFully Configurable Approval Fully Configurable Approval RulesRulesCentrally defined Intercompany Centrally defined Intercompany AccountsAccountsTransactionTransaction--level balancinglevel balancing

Online Online Reconciliation Reconciliation

ReportingReporting

XML XML Publisher Publisher ReportsReports

Subledger AccountingSubledger Subledger AccountingAccounting

DrDr CrCr

General General Ledger Ledger ReceivablesReceivablesReceivables PayablesPayablesPayables

Centralized Intercompany Faster Period-End Close

2.52.5

InterInterCompanyCompany

VISION US

VISION USVISION US VISION ItalyVISION France

SubledgerSubledgerInvoices &Invoices &DocumentsDocuments

General General Ledger EntriesLedger Entries

• GL Entries created for US subsidiaries

Intercompany business Example: Global Cross Charges

• VISION US charge out internal service for France and Italy

• AGIS validates and processes approvals

• AGIS checks Legal Rules• Determines if any

Subsidiary requires an invoice

• AP and AR Invoices created for France and Italy

This is the This is the Receivables Balance Receivables Balance

in Vision Swedenin Vision Sweden

This is the Payables This is the Payables Balance in Vision Balance in Vision

NorwayNorway

Reconciliation

Responsibility Responsibility Responsibility

Role-Based AccessMore Productive Shared Services Operations

SwedenLegal Entity

DenmarkLegal Entity

NorwayLegal Entity

Perform multiple tasks across operating units without changing responsibilities

ResponsibilityResponsibility ResponsibilityResponsibility ResponsibilityResponsibilitySingle Responsibility

Functional TasksAccounting Billing, Dunning & CollectionsProcurementOrder ManagementPaymentsData Management

SwedenOperating Unit

DenmarkOperating Unit

NorwayOperating Unit

3

Considerations R11i vs. R12

• Sets of Books • Global Accounting Engine • AX Posting Sets of Books• Global Intercompany System

(GIS) • GL Intercompany Accounts• Translated Currency • Multiple Reporting Currencies• MRC Primary Set of Books• MRC Reporting Set of Books• Thin MRC Reporting Book• Full MRC Reporting Book• Translated Balance

• Ledgers• Subledger Accounting• Secondary Ledgers• Advanced Global Intercompany System (AGIS)

• Intracompany Balancing• Balance level RCs• Reporting Currencies (RCs)• Primary Ledger• Reporting Currency• Journal level RC• Subledger level RC• Balance Level RC

Terminology ChangesRelease 11i Release 12

* Available Pre-R12

Financial Consolidation Hub

Internal Controls Manager• Compliant access provisioning • Continuous monitoring of profile

options• Monitoring of application controls at

supplier sites• Online and report history of application

control changes

New in ICM

• Monitor consolidation process and certification status

• Drill-back to certification status in ICM

• Spreadsheet drill-back to source transactions

• Dynamic spreadsheet-based statutory and mgmt reporting

New in FCH

Global Compliance and Reporting*Integrated Financial Reporting & Compliance Mgmt

FinancialConsolidation

FinancialConsolidation

OperatingBalances

SAP

PeopleSoft E

JD Edwards E1

Oracle EBS

Legacy Apps

One-TouchConsolidation

ReportGeneration

Multi-DimensionalAnalysis

ResultsAuditing

DataTransformation

& Validation

ComplianceCertification

Global Visibility and IntegrationFinancial Consolidation Hub

Interactive Interactive spreadsheet spreadsheet

with with live drill to live drill to

transactionstransactions

Financial Consolidation Hub Spreadsheet Reporting with Live Drill


THINK Globally

Perform Multi-Dimensional Analysis within Existing Relational Database

Flexibility• Enhanced dimension handling

Ease and efficiency of Use• Business process definition

duplication• Improved analyst calculation

maintenance

Integration• Report FCH data in EPB• Report PFT data in EPB

New CapabilitiesFinancial

Operational External

Statistical

Planning & ModelingEnterprise Planning and Budgeting

ThinkWork Manage

Dashboards

Reports

Strategy Maps Portal Pages

Strategic Objectives

Sample of available Views New Views

New Capabilities*• Create, publish & view Dashboards

and Reports• Automatically generate

summarization data mart for all or selected objectives or reports

• New Migration module in HTML

• Integration with Oracle Warehouse Builder – BSC Expert

• Support for Analytical Workspaces

• Load actual and benchmark data using Web ADI (Excel templates)

* Available Pre-R12

Management ReportingBalanced Scorecard

ThinkWork Manage

Real-Time Profitability AnalysisProfitability Manager*

Drivers

Resources

Activities

Statistics

Costs / Revenue

Transactions

Cost Pools

% Distributions

Rate X Volume

Models

Methods

ProfitabilityEngine

ProfitabilityEngine

• Achieve global viewof profitability from multiple data sources

• Calculate profitability based on user-definable rules and formulas

• Analyze profitability along any dimension including geography, product, channel, segment, customer, organization, etc

* Available Pre-R12

ThinkWork Manage


MANAGE Globally

• Enable key integration types- Business to Business- Enterprise Application Integration- Business Process Management- Business Activity Monitoring

• Support industry-standard messages

• Support standards-basedXML documents

• Search and view available interfaces via powerful UI

• Automatically keep in step with source code via standard patching

A Catalog of All EBS Integration Points• Web Services• Public Java & PL/SQL APIs

• Business Events• Batch Interfaces

Comprehensive Integration Repository ThinkWork Manage

Merchandising

Invoice Matching

Sales Audit

Stock Ledger

Accounts Receivable

Cash Management

General Ledger

Accounts Payable

E-Business Financials

• Matched invoices• Credit notes• Debit memos• Rebates

• Suppliers• Partners• Addresses• Freight terms

• Lower cost integration between disparate systems• Better performance with integrated business flows across applications

Inbound Retek Data

Outbound Financials Data

• Daily sales• Cash and deposits• Inventory• Sales data

• Payment terms• GL accounts• Currency rates

Integration with Core ApplicationsOracle | Retek Integration with BPEL

ThinkWork Manage

Data ManagementLeveraging centralized data model

Oracle Fusion MiddlewareOracle Fusion Middleware

Trading Community Architecture

Trading Community Architecture

ERPERP CRMCRM 3rd Party3rd Party

PayablesPayablesPurchasingPurchasing

Global Tax PaymentsPayments

SuppliersGovernments.“Geographies”,Authorities, etc

Party Information

Cash ManagementBanks and Branches

The New Standard Reports ParadigmXML Publisher and 835 Templates

• Put reporting in the hands of the business user

• Create report formats using desktop tools (Adobe Acrobat, MS Word, MS Excel, and XSL Editors)

• Publish in any format, to the web and electronically

• Drive reporting consistency with one source of data

Why you’ll love it• Replaces many standard

reports with data extracts and templates

• Merges custom templates and data extracts at run-time

• Delivers output in PDF, HTML, RTF, Excel (HTML), or text for use with EFT and EDI transmissions

• Example• 98 removed reports in JE/JG• 19 Extracts, 86 Templates

What’s Happening

Evolution of Operational ReportingEvolution of Operational Reporting

• Payables Mgmt• Payables Status • Customer Support Mgmt• Plan Mgmt• Commodity Supplier Mgmt• Commodity Spend Mgmt• Product Mgmt –

Engineering • Manufacturing Mgmt• Customer Fulfillment Mgmt• Shipping Mgmt• Inbound Telephony Mgmt• Service Renewals Mgmt• Capital Project Cost Mgmt• Contract Project Cost Mgmt

• Receivables Mgmt

• Receivables Status

• Supplier Management

• Sourcing Management

• Procurement Spend Management

• Employee Absence Management

• Sales Agreement Management

• Web Store Management

11i.9 (DBI v6) 11i.10 (DBI v7.0 & 7.1) 12 (DBI v8)

IntelligenceReports

33

214

377

54

313

827

> 60

> 370

> 940Capabilities/ Roles

• Purchasing Performance• Purchasing Status• Warehouse Mgmt• Transportation Mgmt• Maintenance Mgmt• Depot Repair Mgmt• Field Service Mgmt• Funds Mgmt• Salary & Turnover Mgmt• Workforce Budget Mgmt• Open Enrollment Status• Contingent Worker Mgmt• Compliance Certification

• Product Revenue Bookingsand Backlog

• Product Mgmt• Product Cost Mgmt• Inventory Mgmt• Sales Forecast Mgmt

vers

ion

7.0

vers

ion

7.1

Dashboards

KPIs

CONFIDENTIAL: All capabilities and dates are for planning purposes only and may not be used in any contract




•• Q&A Q&A

Agenda

“Ability to issue one payment instruction to the bank for payments of invoices in multiple operating units was viewed as a huge benefit from the user community.”

“We have 60 sets of books and see tremendous efficiencies with running processes across these sets of books using Ledger Sets.”

Why UpgradeStraight Talk from Customers

“The ability to access multiple operating units with a single responsibility can simplify SOX compliance monitoring.”

“Multi-Org Access Control (MOAC) will definitely reduce the workload and the number of people performing process related tasks. The users are very excited and the benefits of MOAC were readily visible to them.”

“Banks, taxes, payments, and accounting – everything that becomes centralizedwill bring tremendous efficiencies to our organization.”

“The functionality offered with Advanced Global Intercompany System (AGIS), specifically the creation of physical invoices to be created for I/C transactions in Payables and Receivables eliminates many customizations in this area.”

“Centralization of subledger accounting rules would minimize set up and maintenance, providing greater financial control, and enforcing a consistent approach for true global accounting.”

“We found Oracle’s E-Business Suite Release12 to be rich in functionality that our clients need to succeed in today’s business world.”

“Release 12 features will help solve our clients’ biggest business process and industry-specific challenges and we look forward to partnering with Oracle and our joint clients.”

“For many of our clients, sharing services is strategic and we are pleased that Oracle recognizes this as one of the main drivers for changing its E-Business Suite financials architecture to facilitate businesses operating global shared service centers.”

Brian A. MitchellGlobal Business Services Americas Oracle Practice Lead

Why UpgradeStraight Talk from Partners

“Oracle continues to invest in a better user experience in E-Business Suite Financials Release 12 -- from centralized accounting, tax and supplier maintenance to a new user interface.”

“Oracle’s new XML Publisher is visionary and empowers end users. This new capability enables users to create their own reports, minimizing the dependency on the IT staff.”

“Many clients are evaluating whether to upgrade from OracleE-Business Suite 11i to Release 12 or wait for the larger Fusion release. There are significant application & architecture changes in Release 12. Upgrading now will help build the foundation to prepare for Fusion -- maximizing business value while mitigating risk.”

Feedback from Release 12 TrainingOctober 2006

Why UpgradeStraight Talk from Partners


•• How can Financials Release 12 help?How can Financials Release 12 help?


•• Q&A Q&A

Agenda

Q U E S T I O N SQ U E S T I O N SA N S W E R SA N S W E R S