Fin R-12 Architecture

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Overview of the New Financial Architecture in Oracle E-Business Suite Release 12 Seamus Moran, Amy Andrews

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.

Overview of the New Financial Architecture in Oracle E-Business

Suite Release 12

In this session, get an overview of the accounting and financial architectural components shared across products in Oracle E-Business Suite Release 12. You will hear about ledgers, subledger accounting, the common bank model, the common tax model, and shared services processing

Agenda

• CFO Challenges and Global Trends• New Architecture

• Multi-Org Access Control• Subledger Accounting• Ledger Sets• Centralized Business Functions

• Legal Entity• Accounting Setup• Tax• Intercompany• Banks

• Reporting• Sharing Services• Q&A• Recommended Sessions


What we set out to address

National and International Laws & Regulations

Actions by Competitors

Changing Customer Requirements

Industry Standards and Regulations

Tax Codes

Changing Workforce Attitudes

International Reporting Standards

Language and Cultural Differences

11

Doing Business Globally is ComplexTop Drivers of Complexity

22

33

44

55

66

77

88

Direct impact on Finance

Source: PWC, 9th Annual Global CEO Survey

Globalization is unstoppable. Regardless of geography, industry or income, companies are globalizing to gain new customers and access new markets. Is this a good thing? Nearly two-thirds of the CEOs we surveyed

are positive about the impact that globalization will have on their

organizations over the next three years.

Source: 9th Annual Global CEO Survey –Globalization and Complexity; PwC 2006

Make it Simpler to do your jobControl Costs by Managing Complexity

50%Senior executives say simplification is driving the Finance agenda

Major Focus

Standardizing operating practices and controls

69%

Standardizing policies and business rules

66%

Standardizing and integrating finance systems

59%

Adopting best practices 58%

Optimizing the finance organization and its reporting structure

52%

Reducing reliance on spreadsheets 33%

Source: PWC Management Barometer

Make it Easier to do Your Job

Transactional ActivitiesControl ActivitiesDecision Support, Performance Mgmt

50% Improve processes or rationalize technologies

60% Standardize policies, rules, and processes across the entire enterprise

73% Implement a shared services model *

80% Adopt best practices or simplify processes across the entire enterprise

47%26%

27%

The Agile CFO, IBM Business Consulting Services, 2005* Deloitte Consulting, 2006

How Finance Spends its Time % Yet To…

ControlledTransactionEntry

ControlledTransactionEntry

Comprehensive and compliant

processing

Comprehensive and compliant

processing

Transparent Audit,

Reconciliation& Drilldown

Transparent Audit,

Reconciliation& Drilldown

Easy ReportingEasy Reporting

AnalyticsAnalytics

Work Globally, to be more competitive

Think Globally, to make the right decisions

Manage Globally, to lower cost and increase performance

FinancialData for

Management- and

Compliant

FinancialData for

Management- and

Compliant

Customers:Centralize, Simplify, Standardize

National ComplianceLocal RegulationNational COALocal Calendar

Corp. ComplianceUS GAAP / IAS-IFRSCorp COACorp Calendar$

Joint ComplianceUS GAAP / IAS-IFRSCorp COACorp CalendarA$+$

€

Parent ComplianceUS GAAP / IAS-IFRSCorp COACorp Calendar

€+$+

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

How Financials Release 12 Can HelpThe Global Business Release

Financial Control & Reporting

Credit-to-Cash

Procure-to-Pay

Treasury & Tax

Performance Management

Profitability Management

Business Intelligence

Integration

Data Management

Reporting

Governance, Risk & Compliance

Asset Management

Travel & Expense

The Global Business Release

Global:1. Of, relating to, or involving the entire earth;

worldwide: global peace; global monetary policies, etc.

2. Comprehensive; total: a... global, generalized sense of well-being


Release 12

The Global Business Release:

A New Financial Architecture

Architecture Overview

• This talk: focused on Architecture Content• Not covering:

• Over 300 new features• Best Upgrade path ever• Ownership Experience • Analytics• Fusion Middleware

• They are all important parts of Twelve

Global Financial Architecture

BankBankModelModel

Tax Tax EngineEngine

InterInterCompanyCompany

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

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

ProjectsProjectsReceivablesReceivablesInventoryInventory

Work in ProcessWork in Process PurchasingPurchasing PayablesPayables

Multi-OrgAccessControl

MultiMulti--OrgOrgAccessAccessControlControl

6 Major Initiatives1. Ledger and

Ledger Sets2. Multi-Org

Access Control

3. Subledger Accounting

4. Tax Engine5. Intercompany6. Bank Model


Multi-Org

Access ControlThinkWork Manage

ResponsibilityResponsibility ResponsibilityResponsibility ResponsibilityResponsibility

HollandLegal Entity

DenmarkLegal Entity

BelgiumLegal Entity

Functional TasksOrder ManagementDunning, Collections, BillingRequisition, Demand & Purchase OrdersReceiving & Drop ShipInvoice Receipt, DisbursementCustomer Data ManagementAccounting Setup

Functional TasksOrder ManagementDunning, Collections, BillingRequisition, Demand & Purchase OrdersReceiving & Drop ShipInvoice Receipt, DisbursementCustomer Data ManagementAccounting Setup

Single Responsibility

BelgiumOperating Unit

HollandOperating Unit

DenmarkOperating Unit

Perform multiple tasks across operating units without changing responsibilities

MOAC: Multi-Org Access ControlRole based access to Operating Units

Multiple Organization Access ControlSummary of Changes

• Security Profiles for data security• MO: Security Profile• List of operating units for a responsibility• Defined in HR

• 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 processes• OU parameter on other standard reports and processes• For example: submit the Payables Open Interface Import w/OU

param null to import all records across all OUs

Multi-Org Access ControlSetup –Define Security Profile

Classify Organization as operating

unit

Select Operating Unit classification

Reporting at the Operating Unit Level

MOACTypical Screen in Daily Use

Select OUs

Select OUsSelect OUs


Subledger Accounting

ThinkWork Manage

ProjectsProjectsProjectsReceivablesReceivablesReceivables

PayablesPayablesPayables

3rd Party Systems3rd Party Systems

InventoryInventoryInventory

3rd Party Systems3rd Party Systems

Centralized Accounting PoliciesGreater Control, Transparency and Auditability

• 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

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

DrDr CrCr

General Ledger General Ledger General Ledger General Ledger

Work in ProcessWork in ProcessWork in Process PurchasingPurchasingPurchasing

Subledger AccountingCentralized Rules, Common Repository: Global Control

Payables InvoicePayables Invoice

French RulesPlan ComptableFrench CalendarEUR

Ledger

SubledgerAccountingSubledgerAccounting

Dr Cr

• Faster, Easier Reconciliation

• Corporate Rules = Accounting Standardization

• Local Rules = Improved Local Compliance

• Automate “Apples to Apples” Adjustments

• Improved Audit-ability

• Improved Internal Control

Some Benefits• Accounting Rules

• SarBox & 8th Dir.• User Editable

• Subledger Daybooks (Journals)

• Subledger Balancing• Reports, inquiries, open

items, et cetera• Multiple

Representations• Common Posting to GL

Ledgers • Real time or Periodic

What it is

Subledger AccountingTransaction Level Compliance

Event Class: InvoicesEvent: Invoice Approved Ledger: France (EUR)GL Date: 20-Sep-2005Description: Office supplies Type Account Description Debit Credit

Asset purchase 01.9100010.100 Paris: furniture 10,000Misc expense 01.9100020.100 Paris: supplies 400Misc expense 01.9100020.200 Nantes: supplies 100Misc expense 01.9100020.300 Nice: supplies 300VAT 01.3100060.000 VAT@17% 1,836Accounts Payable 01.7000010.000 ABC Supplies 12,636

12,636 12,636

• National Daily Journal Requirements• Internal Control: Central Definitions, Eliminate overrides

• Policy Enforcement in Volume Processing• Transparent Accounting Rules• Debits & Credit at the point of the event• Automate Foreign Operation adjustments• Reconciliation

Platform• “In accordance

with theUnderlyingRecords”

Enjoy End-to-End Control, TransparencyGovernance: 404 & 8th Dir. View of faraway accounting

Operating Unit 1

Operating Operating Unit 1Unit 1

Operating Unit 2


Operating Unit 3


Product Accounting

Manual Adjustments and WorkaroundsManual Adjustments and Workarounds

SOB 1SOB 1 SOB 2SOB 2 SOB 3SOB 3

Ledger 1Ledger 1 Ledger 2Ledger 2 Ledger 3Ledger 3

Subledger Accounting

Operating Unit 1


Operating Unit 2


Operating Unit 3


US GAAPUS GAAPUS COAUS COAUS CalendarUS CalendarEUREUR

Ledger BLedger BFrench RulesFrench RulesPlan ComptablePlan ComptableFrench CalendarFrench CalendarEUREUR

Ledger ALedger A

Multiple Accounting RepresentationsGlobal Compliance – Statutory and Stock Market

Subledger AccountingSubledger Subledger AccountingAccounting

Single subledger transaction

can create multipleaccounting

representationsand in multiple

currencies

Single subledger transaction

can create multipleaccounting

representationsand in multiple

currencies

DrDr CrCr

Payables InvoicePayables InvoicePayables Invoice

Chose to use an alternative Ledger -

or just an AdjustmentLedger or segment

Chose to use an alternative Ledger -

or just an AdjustmentLedger or segment

or

Multiple LedgersMultiple Ledgers


Ledger Sets

ThinkWork Manage

Ledger Sets Global Information At A Glance

Ledger SetLedger SetLedger Set

Key benefits to many Ledgers in one set• Decision-driving business information always available• Simpler processing and General Ledger management• Data and definitions that can be shared and secured

US GAAPUS COAUS CalendarUSD

US GAAPUS COAUS CalendarUSD

Ledger CLedger CLedger C

US GAAPUS COAUS CalendarEUR

Ledger BLedger B

French RulesPlan ComptableFrench CalendarEUR

Ledger ALedger A

Share:Chart of AccountsCalendar

Share:Share:CChart of Accountshart of AccountsCCalendaralendar

Ledger DLedger DLedger D

Reporting Currency

US GAAPUS COAUS CalendarAUD

Currency in Release 12

• Transaction Currencies• Accounting Currency in Primary Ledger• Reporting Currency in Primary Ledger• More Accounting Currencies in Secondary Ledgers

• For every transaction OR• For SLA Posting level / GL activity level

• Balance level Translation or Remeasurement in Ledgers – within Ledger sets, run at one click

• Balance & Activity level Translation or Remeasurement in Financial Consolidation Hub

• Enhanced Revaluation• [Functional Currency term dropped: conflicts with IAS 21 / FAS 52]

Ledger Sets – Work them your way

CorporateLedger Set

adjustments eliminations

UK Ledger Set

US Ledger Set

Legal LedgerUK1

Legal LedgerUK2

Adj LedgerCorporate

Adjustment Ledger UK

Adjustment Ledger US

Legal LedgerUS1

Legal LedgerUS3

Legal LedgerUS2

ManagementLedger SetManagementLedger Set

• Automate GAAP / IAS adjustments in an adjusting ledger

• Eliminate within a Set with GCS• Consolidate Formally in FCH• Map from a non-conforming COA

with a GCS Ledger

• Automate GAAP / IAS adjustments in an adjusting ledger

• Eliminate within a Set with GCS• Consolidate Formally in FCH• Map from a non-conforming COA

with a GCS Ledger

• Set of 26 Ledgers in one country• Euro Zone in One Ledger Set• My Corporate Set in US GAAP• Statutory Set for Country Y Subs• Division X Worldwide Ledger Set

• Set of 26 Ledgers in one country• Euro Zone in One Ledger Set• My Corporate Set in US GAAP• Statutory Set for Country Y Subs• Division X Worldwide Ledger Set

Data Access, Definition Access

• Data Access Sets • Grant and tailor access to Ledgers and Balancing Segment

Values (i.e. Companies, Stores, Branches, etc.)

Accountant

Privileges

France LedgerFrance Ledger

Canada LedgerCanada Ledger

US LedgerUS Ledger

GL ManagerView Write

• Definition Access Sets – separate from data security• Share, restrict definitions; privileges to view, modify, etc.


Centralized Business Functions

ThinkWork Manage

Legal Entity: Your Registered Companies

Legal AuthoritiesCountries, States, Local,

Agencies, Taxation,Registrars, Regulators...

Legal EntitiesRegistered Companies,Funds, Partnerships…

Inc. LLC. Ltd. SA. GmBH. Etc. “exist in the outside world”

Management OrgsDivisions, LOBS, Plants, Cost Centers, Whatever =“Decision Making Tags”

Regulates

Managed & analyzed by

PublicCompany

(ultimate parent)

PublicCompany

SubsidiaryCompany

(regional parent)

SubsidiaryCompany

(business parent)

SubsidiaryCompany

SubsidiaryCompany

SubsidiaryCompany

SubsidiaryCompany

SubsidiaryCompany

• Parent companies (LEs) “own or control” subsidiaries (LEs)

• No outside ring - must pick an LE• LEs create commercial

transactions

Complies

LEs: Why and What?

• LEs pay the taxes - need tax registrations

• Trade between LEsneeds intercompany

• LEs own the moneyand bank accounts

• LEs file the accounts, take care of accounting

• LEs comply with whatever needscompliance: “legal” in LE

Why We Care

• Addresses, Officers, etc.• Enabled First Party

stamp• Added Establishments:

map Registrations to Authorities

• GRE/LE not touched • Authorities as TCA

parties• LE Configurator

What we’ve done

Setup and maintain: Legal Entities, Establishments, Jurisdictions, Legal Authorities, Legal Addresses

Tabulate your Registered Companies and other forms of LE

Where LE fits in…

Transaction Taxes -

Complies &Files, Pays

Actual RegisteredCompanies, etc.

Et Cetera, 11iMaintains its SubledgerDocuments in many OUsDefault LegalContext (DLC)

Maintains its SubledgerDocuments in many OUsDefault LegalContext (DLC)

Accounts for itself

in a Ledger or BSVs

Accounts for itself

in a Ledger or BSVs

LegalEntity

Ledger

BusinessGroup

GRE/LE

OperatingUnits

Registrationswith Authorities Files Files

FilesFiles

Establishments

Registrationswith Authorities

ExistsLocallyExistsLocally

Legal Entity:Vehicle for compliance


Transaction Taxes -

Complies &Files, Pays

Actual RegisteredCompanies, etc.

Et Cetera, 11iMaintains its SubledgerDocuments in many OUsDefault LegalContext (DLC)

Maintains its SubledgerDocuments in many OUsDefault LegalContext (DLC)

Accounts for itself

in a Ledger or BSVs

Accounts for itself

in a Ledger or BSVs

LegalEntity

Ledger

BusinessGroup

GRE/LE

OperatingUnits

Registrationswith Authorities Files Files

FilesFiles

Establishments

Registrationswith Authorities

ExistsLocallyExistsLocally



Get the LE RightCompliance Falls Into Place

Let’s put LEs to work• Isolate legal compliance from management needs• Track your registered companies• Make your compliance flow more easily

Accounting Setup ManagerAssign books, bookkeeping rules and currency management to your registered companies

EBusiness TaxHave your registered companies calculate, file, and pay the transaction taxes they owe

IntercompanyDo business between and across your registered companies with full legal documentation

Bank ModelHave your registered companies use their money to pay their bills, et cetera


Accounting Setup Manager (ASM)

ThinkWork Manage

Define Multiple Ledgersfor Rules & Currencies

Define Legal Entities& Associated Rules

One Place to manageYour Global Accounting

Rules, Currencies,Ledgers,

And Ledger Sets Set Accounting Rulesfor All EBS Apps

Ensure Complete & Accurate

Setup via Online Checklist

Centralized Set-upAccounting Setup Manager


E-Business Tax

ThinkWork Manage

Automation• Tax content for certain countries• Vertex and Taxware integration for U.S. • Integrity checks during setup process

Constant Changes in Tax Laws and Regulations

• Date effective setup • Tax rules flow for change or creating rules • Tax simulator for setup, rules, and transactions

Business NeedsBusiness Needs SolutionSolution

Local Compliance• Tax registrations and tax reporting codes• Tax lines determine applicable taxes• Configurable tax reporting templates

Centralized Global TaxLess Complex Global Tax Compliance

Information Visibility

• Single set up for all Oracle applications• Use of E-Business Suite components such as trading partner geography,

trading partner classification, legal entity, inventory item categorization, and accounting event.

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


Advanced Intercompany(AGIS)

ThinkWork Manage

Web UIWeb UI

Open Open Interfaces / Interfaces /

APIAPI

Excel Excel (Web ADI)(Web ADI)

Advanced GlobalIntercompany

System

Advanced GlobalIntercompany

System SubledgerSubledgerInvoices &Invoices &DocumentsDocuments

Generate subledger invoicesGenerate subledger invoicesControl transaction entry with Control transaction entry with Intercompany CalendarIntercompany CalendarFully Configurable Approval RulesFully Configurable Approval RulesFlexible Security ModelFlexible Security ModelCentrally defined Intercompany Centrally defined Intercompany AccountsAccounts

Online Online Reconciliation Reconciliation

ReportingReporting

XML XML Publisher Publisher ReportsReports

Advanced Global Intercompany SystemAddress the Top Barrier to a Fast Close

Subledger AccountingSubledger Subledger AccountingAccounting

DrDr CrCr

General General Ledger Ledger ReceivablesReceivablesReceivables PayablesPayablesPayables


Banking Model

ThinkWork Manage

• 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


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

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 Model• New Bank & Credit Card

Features

BanksDefine Owner of Bank Account

Legal EntityLegal Entity

BanksGrant OU Access to Bank Account

Operating UnitsOperating Units


Cross Ledger Information

ThinkWork Manage

ThinkWork Manage

Four Ways to “Consolidation” Information

Ledger Ledger SetsSets

GCSGCS DBIDBI FCHFCH

ObjectiveObjective Manage Ledgers, Balances

Non-Complex Consolidation

“Barn dooris open –close it”

Complex Consolidation

& analysis

IAS/IFRS &IAS/IFRS &US GAAPUS GAAP

Use GCS to eliminate

By Design DailyDecisions

By Design

Internal Internal controlcontrol

GL Controls, OICM

GL Controls,OICM

OICM onsubledgerProcesses

OICMIntegration

FrequencyFrequency Once Posted Monthly Daily Once Run

SourceSource GL from SLA GL from SLA GL, SLA, Sub Ledgers

GL from SLA, SAP, E, etc.

ReportingReporting FSG send to FCH

FSG send to FCH

Portal as Delivered

EPB + Excel Interface

FinancialConsolidation

FinancialConsolidation

OperatingBalances

*Common data model for Oracle’s CPM solution

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

ThinkWork Manage

• Create reports & graphs

• Historical• current• projected data

• Analyze performance

• Detect trends• Define

• variance• thresholds

• Receive auto-alerts

Multi-Dimensional Analysis & ReportingIn product row/column UI or: within a Spreadsheet!


New StandardReporting Paradigm

ThinkWork Manage

XML/EFT/EDIXML/EFT/EDI

ReportsReportsLabelsLabels

InvoicesInvoices ChecksChecks

XML PublisherXML Publisher

DestinationsDestinations

XML PublisherEnable Business Users to Format and Deliver Documents

Integrate Out-of-the-Box with R9 CRM, ESA, FMS, HCM, and SCM

Integrated Solution For:• Formatting• Managing• DeliveringYour Business Documents

• Meet Business Requirements

• Remove Complexity• Reduce Maintenance Cost• Reduce TCO

Integrate Out-of-the-Box with Oracle Applications

Templates

XML PublisherOracle

Applications

CRM

Projects

FMS

HCM

SCM

Output FormatsData Sources

Any XMLData Source

PDFRTF

Business User

PublishingEngine

XML• Email• Printer• Fax

HTMLXML

Letters

FundTransfers

OnlinePaychecks

OrderConfirmations

Bills GovernmentGrant Forms

Destination

EDIExcel

XML PublisherBusiness Users Format and Deliver Documents

The New Standard Reports ParadigmXML Publisher and 835 Templates in the EBS

• Put reporting in the hands of the business user

• Create report formats using desktop tools (Adobe Acrobat, MS Word, MS Excel, and XML 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

Financial Reporting with XML PublisherNearly 400 Modifiable Formats in Financials

ProductProduct FormatsFormats ProductProduct FormatsFormatsAssets 22 IT Audit 2Cash 3 Loans 6Collections 15 Payables 9Common Modules 10 Payments 120Financials Consolidation Hub 21 Public Sector 6

General Ledger 14 Receivables 10

Globalizations 92 Subledger Accounting 17

Internal Controls Manager 25 Tax 23

Cross OU Reporting

• Enhanced Multi-Org Reporting• Ledger/Ledger Set parameter on accounting reports and

processes• OU parameter on other standard reports and processes

• Create XMLP Extracts & Templates that cross OU• You can mix as many languages as you want. • You can have templates translation extracted

• XMLP will merge the right language based on the user locale (and the data).

• You can have the template with no text, and drive everything from the xml data

• Beware of inconsistent definitions, currencies

Data ManagementLeveraging centralized data model

Oracle Fusion MiddlewareOracle Fusion Middleware

Trading Community Architecture

Trading Community Architecture

ERPERP CRMCRM 3rd Party3rd Party


Global Tax PaymentsPayments

SuppliersAuthorities, etc Party

Information

Cash ManagementBanks and Branches


Sharing Services

ThinkWork Manage

Shared Service Infrastructure

(Serves Informal and Formal)Organizational AccessCross Org Processes

Banking ModelInter Unit Accounting

All Together: Easier To Share ServicesCentral processing, Distributed impact

SSCs(Formal)

SLAs & TaxInter-LE

Formal SSCsAt home or overseasCall Centers, OutsourcingOffshoring, SAS 70, On Demand

Informal Service SharingProcess EfficiencyDecentralized Depts.Centralized Depts..Normal BusinessPractice

Ledgers & Ledger SetsLedgers with

Balancing SegmentsMOAC across OUs

IntercompanyBank Model

Tax

Ledger and Ledger SetsSubledger Accounting

Intercompany, Tax EngineMOAC across LEs, Bank

Internal Controls Manager

• Work Globally• Global Order Desk• Global Procurement• Global Billing• Global Dunning

• Think Globally• Global Ledger Sets –

worldwide insight• Global Reporting

• Manage Globally• Global Accounting

Rules• Global Set-up• Global Integration

What the Architecture Gets You

Release 12 Subsidiary LEs….

…account for themselves in Ledgers, and…

Ledger Set

Company CompanyCompany

ProjectsProjectsReceivablesReceivablesInventoryInventory

Work in ProcessWork in Process PurchasingPurchasing PayablesPayables

Multi-OrgAccessControl

MultiMulti--OrgOrgAccessAccessControlControl

manage their subledger data in Operating Units

Share Services, maintain privacyExploit Cross-OU Processes

Yesterday: An LE Group in 1 SoB with 1 OU - no partitioning R12: Introduce partitioning

without sacrificing processes

AssetsAssets




PayablesPayables

InventoryInventory

Work inProcessWork inProcess

Ledgers inLedger Sets,

New OUsMOAC

InventoryInventory


AssetsAssets




PayablesPayables

InventoryInventory



It is not all architecture:

+300 FeaturesThinkWork Manage

Over 300 New Financial FeaturesJust a sample…

• Manage the Margin

• Collect Faster

• Standardize Payables

• Pay more easily

• Simplify Employee Expenses

• Rationalize Procurement

• Bulk Process Assets

Simplify and StandardizeSimplify and Standardize New FeaturesNew Features

• Live AR-Inventory. Revenue-COGS Match

• Deferred COGS and Revenue Automation

• Advanced collection, Dunning, Loans

• Invoice Lines

• Suppliers in TCA: one setup per partner

• Supplier, users invoice self service

• Straight through processing (STP) at banks

• Per diems, approval enhancements

• Expense Bar Codes

• Self Service receipt matched invoices

• Real time contract T&Cs in PO, AP

• Asset Automatic Depreciation Rollback

Q U E S T I O N SQ U E S T I O N S

Recommended Sessions

• Business Case for Upgrading to EBS Financials R12• Tuesday, 1:45 pm, Marriott Salon 9

• Streamline Payment Processing with Oracle Payments: What's New in Oracle E-Business Suite Release 12• Wednesday, 11:30 am, Moscone West 2018 West

• Deep Dive into the New Accounting Engine in EBS R12• Wednesday, 2:30 pm, Marriott Salon 7

• Financial Reporting in E-Business Suite Financials• Wednesday, 4:00 pm, Moscone West 2009-2011

• Financial Management Q&A with Development and Strategy• Thursday, 9:00 am, Marriott Salon 7

• Technical Perspective on the EBS R12 Financials Upgrade• Thursday, 11:00 am, Moscone West 2009-2011

• Meet the Experts (Financials)• Thursday 11am -1:30pm, Moscone South

MOAC, +300 FeaturesMOAC, +300 Features

SLA,Tax

SLA,Tax

Ledger Sets,Ledgers

Ledger Sets,Ledgers

XML Publisher Reporting

XML Publisher Reporting

Profitability Mgr,EPBProfitability Mgr,EPB

SubledgerSubledger

Work Globally, to be more competitive

Think Globally, to make the right decisions

Manage Globally, to lower cost and increase performance

DBI, FCHDBI, FCH

Intercompany, Bank, Payments

Intercompany, Bank, Payments

General Ledger

General Ledger

TransactionsTransactions

Release 12: The Global Business Release

OICMOICM

TCA, LETCA, LE

National ComplianceLocal RegulationNational COALocal Calendar

Corp. ComplianceUS GAAP / IAS-IFRSCorp COACorp Calendar$

Joint ComplianceUS GAAP / IAS-IFRSCorp COACorp CalendarA$+$

€

Parent ComplianceUS GAAP / IAS-IFRSCorp COACorp Calendar

€+$+