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Oracle E-Business Suite Financials Release 12.1 Overview
Stephen Ouellette, CPA
Solutions Consultant, Applications
3
Complexity = Increased Costs
12.1 Overview
Agenda
Key Takeaways
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
4
• Fragmented, decentralized systems
• Disparate policies, processes, and controls
• Regional centralization
• Some standardization, but
mostly manual processes
• Consolidated systems
• Standardized policies,
processes and controls
• Automated processes
Co
mp
lex
ity &
Co
sts
Complexity Drives Up Costs
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
5
Complexity = Increased Costs
12.1 Overview
Agenda
Key Takeaways
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
6
Procure to
Pay
Credit to
Cash
Cash &
Treasury
Management
Financial
Control &
Reporting
Financials
Architecture
Financials
12.1 Travel &
Expense
Management
Oracle E-Business Suite Financials
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
7
Oracle E-Business Suite Financials
Procure to
Pay
Credit to
Cash
Cash &
Treasury
Management
Financial
Control &
Reporting
Financials
Architecture
Financials
12.1 Travel &
Expense
Management
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
8
Oracle E-Business Suite Financials Financials Architecture Imperatives
DRIVE CONSISTENCY standardization
INCREASE EFFICIENCY shared services
ADAPT changing business needs
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
9
Legal Entity Banking &
Payments Global Tax
Intercompany
Accounting
Centralized Accounting
Dr Cr
3rd Party
Systems
Inventory
Purchasing
Receivables
Payables
Projects
WIP
Rules-based Accounting Engine
Global Tax Engine
Intercompany
Banking & Payments
Multi-Org Access Control
Legal Entity
Fin
Arch Drive Consistency and Standardization Going Beyond the Traditional Financials Architecture
Centralized Functions:
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
10
Benefits
Accurate recognition of legal ownership
specific to local jurisdictions
Comply with laws and regulations
Ensure accurate changes to legal data
Features
• Centrally manage legal structure
• Link tax, intercompany, bank account,
and accounting functions to legal entities
• Track and report by legal entity,
establishment and registration
• Audit trail of legal data changes
Drive Consistency and Standardization Centralized Legal Entity Management
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
11
Bank Account
Centralized setup and maintenance
Drive Consistency and Standardization Centralized Banking and Payments
Payables Receivables Advanced Collections
Payroll Cash
Management Treasury
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Centralized Payment Engine for
Funds Capture & Disbursement
12
Bank Account
Drive Consistency and Standardization Centralized Banking and Payments
Legal Entity
Operating Unit Operating Unit Operating Unit
Payables
Treasury
Payroll
Receivables
Payables
Payroll
Bank accounts owned and managed through Legal Entities
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
13
Drive Consistency and Standardization Centralized Banking and Payments
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
• Increased efficiency and control
• Real-time visibility into cash flows
• Consistency for shared service centers
• Easier reconciliation of bank accounts
14
Drive Consistency and Standardization Centralized Global Tax Processing
Benefits
Increase efficiency and reduce errors
Easily meet global & local tax compliance
Features
• Configurable rules-based Tax Engine
• Across all E-Business Suite products
• Integration with Major Tax Vendors
(Vertex & Taxware in US)
• Tax Simulator to verify and test setup
Tax Engine
AP
PO
AR
Assets
Cash Mgmt
Other
Inventory
Projects
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
15
Drive Consistency and Standardization Centralized Advanced Global Intercompany System
• Centralized I/C Account Setup
• Workflow Enabled
• Easy Reconciliation
Benefits
Streamline intercompany processing
Eliminate errors
Standardize accounting policies
Increase straight through processing
with intercompany invoice generation
Features
• Centralized intercompany and
intracompany accounts setup
• Automatic generation of accounts
• Flexible approvals & invoicing options
• Integration with GL, AP, and AR
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
16
Responsibility Responsibility Responsibility Single Responsibility
Transaction Processing
• Accounting
• Invoice Entry
• Billing, Dunning & Collections
• Procurement
• Order Management
• Payments
• Reports
Holland
Legal Entity
Denmark
Legal Entity
Belgium
Legal Entity
Belgium
Legal Entity
Holland
Operating Unit
Belgium
Operating Unit
Denmark
Operating Unit
Increase Shared Service Center Efficiency Access Multiple Organizations
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
17
CENTRALIZED ACCESS
France Legal Entity
Italy Legal Entity
U.S. Legal Entity
Business
Unit
Business
Unit
Business
Unit
Single Sign-On
ONE GLOBAL TAX ENGINE
CENTRALIZED PAYMENTS &
FUNDS CAPTURE ENGINE
Central Engine
• Centrally managed rules
• Consistent tax services
UNIFIED BANK ACCOUNT MODEL
Legal Entity
Business
Unit
Business
Unit
Business
Unit
Payments Receipts
Increase Shared Service Center Efficiency Lower Transaction Costs
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
19
Oracle E-Business Suite Financials
Procure to
Pay
Credit to
Cash
Cash &
Treasury
Management
Financial
Control &
Reporting
Financials
Architecture
Financials
12.1 Travel &
Expense
Management
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
20
Increase OPERATIONAL EFFICIENCY
Oracle E-Business Suite Financials Financial Control and Reporting Imperatives
Meet GLOBAL ACCOUNTING STANDARDS
Better Decisions with GREATER INSIGHT
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
21
Multiple ledgers maintain
multiple accounting
representations
Legal Entity
US
Ledger
French
Ledger
Meet Global Accounting Standards Ledger Architecture with Centralized Accounting Engine
French Rules
Plan Comptable
French Calendar
EUR
US GAAP
US COA
US Calendar
USD
Dr. R&D Costs 6,000 USD
Cr. Payables 6,000 USD
Dr. Asset 9,000 EUR
Cr. Payables 9,000 EUR
Payables Invoice
Centralized
Accounting
Engine
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
22
Legal Entity
US
Ledger
French
Ledger
Projects Receivables Fixed Assets Purchasing Payables
Oracle Subledgers
New Features
• Centralized, configurable
accounting rules
• Consistent user interface
across subledgers
Centralized
Accounting
Engine
Benefits
Accounting Consistency
Reduced Costs
Detailed, Auditable Journals
Simultaneous Multi-GAAP
Representations
Complete Audit Trail
Meet Global Accounting Standards Centralized Accounting Engine
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
23
• Brazilian Electronic
Collection Document
Process (DDA)
Brazil
• European Community
VAT Changes for 2010
• Belgium Annual VAT
Report File Format v1.3
• Argentina Simplified
Regime (Monotributo)
Argentina
• Asset Impairment
for Japan Tax
Reform 2007
• Asset changes to
support Japanese
legislation
changes
Japan
• Enhanced VAT for
Flexible Recovery
Schedule
• VAT Statutory
Accounting &
Reporting for Non-
Shippable Items
• China Golden Tax Adapter
Enhancements
China Europe
India
• Enhanced VAT Report
• Withholding Tax File –
856
Israel • Italy Annual VAT and
Withholding Extract
Italy
Meet Global Accounting and Reporting Standards
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
24
Localizations Comply with Local Rules and Regulations
Argentina
Australia
Austria
Belgium
Brazil
Bulgaria
Canada
Chile
China
Colombia
Croatia
Czech Republic
Denmark
Mexico
Netherlands
New Zealand
Norway
Peru
Poland
Portugal
Romania
Russia
Saudi Arabia
Singapore
Slovakia
South Africa
Finland
France
Germany
Greece
Hong Kong
Hungary
India
Ireland
Israel
Italy
Japan
Korea
Kuwait
Spain
Sweden
Switzerland
Taiwan
Turkey
UAE
Ukraine
United Kingdom
United States
Venezuela
Oracle E-Business Suite is used in over 150 countries.
25
Improve Period Close Efficiency Accelerate Close Processes Across Multiple Ledgers
Ledger Set Multi-ledger processing:
• Open/close periods
• Post and reverse journals
• Translate and revalue balances
• Submit standard reports
• Submit financial statements
Benefits:
Perform multi-ledger processing with one click
Better performance with parallel processing
Close your books faster
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
26
Oracle Business Intelligence Publisher
Make Better Decisions with Greater Insight BI Publisher
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
27
Manage Subledger Close Process
Consolidate Financial Data
Report Results
Make Better Decisions with Greater Insight Pre-Built Integration with Oracle Hyperion Financial Close Suite
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
28
EBS General Ledger
Load Metadata
& Drill back
Hyperion Planning
Essbase
Make Better Financial Performance Decisions Pre-built Budgeting integration with Hyperion Planning
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
29
Oracle E-Business Suite Financials
Procure to
Pay
Credit to
Cash
Cash &
Treasury
Management
Financial
Control &
Reporting
Financials
Architecture
Financials
12.1 Travel &
Expense
Management
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
30
Oracle E-Business Suite Financials Procure-to-Pay Imperatives
REDUCE transaction processing costs
STRENGTHEN policy compliance
STREAMLINE procure-to-pay process
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
31
Reduce Transaction Processing Costs New Invoice Model
Invoice
Header
Invoice
Lines
Invoice Workbench Mirrors Physical Invoice
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
32
Reduce Transaction Processing Costs New Invoice Model
Benefits
Improve accuracy
Increased flexibility
Reduces auditing costs
New Features
• Match lines to PO shipment or receipt
• Approve at line level
• Capture additional details on
Oracle Projects and Oracle Assets
(e.g., serial number, item descriptions)
• Line level tax, freight, and
other charges
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
33
Reduce Transaction Processing Costs With Automated Processes
Imaging Integration
Benefits
Reduce costs of paper-based
invoices
Reduce data entry errors
Eliminate late fees
Automated Netting of AR and AP Balances
Benefits
Save transaction fees
Reduce bank charges
Improve cash flow
AR
$900
AP
$800
Automatic Replacement of Bank Accounts
Benefits
No need to manually update
each invoice
Prevents processing delays
Ensures timely payments
XXX-XXX-3458
XXX-XXX-8795
Old
New
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
34
Benefits
Greater automation with straight-through processing (STP)
Cost savings
Enhanced flexibility
Features
• Connects to banks & credit card processors for electronic payments
• Supports all payment formats & flexible payment models
• Integrates with SEPA & Paymentech
• Centralized credit card model with encryption
• 3rd Party Payments
Payment Engine Funds Capture Disbursement
Credit Cards, Direct Debits, EFT Payments
Streamline Payment Processing Oracle Payments
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
35
Oracle E-Business Suite Financials Credit-to-Cash
Procure to
Pay
Credit to
Cash
Cash &
Treasury
Management
Financial
Control &
Reporting
Financials
Architecture
Financials
12.1 Travel &
Expense
Management
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
36
Oracle E-Business Suite Financials Credit-to-Cash Imperative
IMPROVE CASH FLOW and increase efficiency
COMPLY with accounting standards and policies
Make BETTER DECISIONS
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
37
Improve Cash Flow and Increase Efficiency
Line level cash application for
partial payments
Flexible payment plans (loans)
increase collections of
outstanding receivables
Improve
Cash Flow
Increase
Productivity
Work Queue automatically
assigns to Receipts Specialists to
manage and monitor workload
Enhanced performance of key
batch programs ensures high
volume processing
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
38
Comply with Accounting Standards and Policies
• Partial period revenue recognition and more flexible revrec schedules
• Enhanced COGS and revenue matching
• Payment-based revenue recognition
Revenue
Recognition Rules
Complex Tax
Rules
• EBS Tax integration for global tax compliance
• Golden Tax Adapter for China VAT support
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
39
Make Better Decisions
• 360 degree view of your
customer during credit review
(internal and external data)
• Improve credit approval
decisions with financial trends
from previously entered credit
applications
Improve
Credit Decisions
Improve
Collection Strategies
• Improve collection results
with better visibility of
customer accounts and
history
• Execute unique collection
strategies for different
customers based on different
parameters
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
40
Oracle E-Business Suite Financials Cash and Treasury Management
Procure to
Pay
Credit to
Cash
Cash &
Treasury
Management
Financial
Control &
Reporting
Financials
Architecture
Financials
12.1 Travel &
Expense
Management
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
41
OPTIMIZE CASH & reduce banking costs
Oracle E-Business Suite Financials Cash and Treasury Management Imperative
AUTOMATE processes
REDUCE RISK
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
42
Optimize Cash and Reduce Banking Costs
Benefits
Gain greater visibility of overall cash positions
Minimize idle funds
Reduce bank costs
Features
• Centrally monitor & manage
bank balance trends and cash
positions
• Daily an historical positions
• Compare actual versus plan
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
43
Automate Cash and Treasury Processes
• Centralized reconciliation ensures consistency across the organization
• Flexible matching rules to automatically reconcile transactions streamline reconciliation efforts
Bank
Reconciliation
Cash
Pooling
$
Cash 3
Cash 2
Cash 3
• Flexible cash pooling techniques increase overall investment returns
• Intercompany funding with the ability to track loan balances and interest between internal parties
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
44
Reduce Risk
Features
• Automatically generate accounting entries to comply with IAS 39 and FAS 133 for foreign exchange forward hedging
• Automatically calculate the retrospective effectiveness of hedges, comparing historical gains or losses
• Track effectiveness test results
Benefits
Reduce risk and enforce controls
Reduce income statement volatility
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
45
Oracle E-Business Suite Financials Travel & Expense Management
Procure to
Pay
Credit to
Cash
Cash &
Treasury
Management
Financial
Control &
Reporting
Financials
Architecture
Financials
12.1 Travel &
Expense
Management
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
46
Oracle E-Business Suite Financials Travel & Expense Management Imperatives
EXPEDITE expense report processing
CONTROL travel costs
ENFORCE travel policy compliance
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
47
Expedite Expense Report Processing Oracle Internet Expenses
• Automatic upload of expenses from employee credit cards
• AMEX File Transfer integration automates expense report processing
• Automatic itemization of Visa expenses streamlines expense report entry
Improved
Credit Card Integration
Productivity
Enhancements
• Pre-defined expense templates (allocation sets) ensure rapid expense entry
• Expense allocation across multiple account segments, projects, tasks ensure accurate allocations of expenses
Faster
Approvals
• Parallel approvers allow multiple approvers to approve at the same time
• Document attachments (scanned receipts, meeting agendas, etc.) expedite approvals by managers
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
48
Streamline Expense Approval iPhone Approvals
• Approvals on-the-go
• Available as an
add-on to iExpenses
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
49
Reduced paper copies
by $1.4B, decreased
annual CO2 emissions
by 2,000 tons
What Customers Are Achieving…
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
Reduced monthly
close time from
17 days to
less than one week
Reduced report
generation times
from 20 days to a
few seconds
Reduced worldwide
closing time from
six to three days
Streamlined accounting
processes from 600 to
≈ 200 processes, and
reduced # of GL lines by ≈ 60%
Moved to a single
global instance using
a shared service center
that spans 30 countries
50
Oracle E-Business Suite Release 12.1 Live Customers
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
51
Oracle E-Business Suite Release 12.1 Expand Value when Upgrading
I/PM Integration BI Analytics User Productivity Kit
GRC Suite Hyperion Integration XBRL Reporting
GRC Manager
GRC Intelligence
GRC Controls
• Planning
• Financial Management
• Financial Close Management
• Disclosure Management
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
52
Complexity = Increased Costs
12.1 Overview
Agenda
Key Takeaways
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
53
• Fragmented, decentralized systems
• Disparate policies, processes, and controls
• Regional centralization
• Some standardization, but
mostly manual processes
• Consolidated systems
• Standardized policies,
processes and controls
• Automated processes
Co
mp
lex
ity &
Co
sts
Complexity Drives Up Costs
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
54
Business Requirement 12.1 Capabilities
Accelerate productivity
Improved user interface
and automated processes
and BI Publisher reporting
Drive consistent, integrated best practices
12.1 Financials Shared Services
Global standards and international capabilities
Central, global financial
architecture that meets
local compliance
In Summary Operational Excellence in Global Financial Management
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
55
R12 R12.1 EBS 12.x
Enterprise
9.0
Enterprise
9.1
Enterprise
9.x
EnterpriseOne
8.12
World
A9.1 EnterpriseOne
9.0
World
A9.2
Fusion Applications
1.0
Applications Unlimited Proven Ongoing Innovation for all Product Lines
CY 06 07 08 09 10 11 12
Apps Unlimited
Announced
World
A9.x
E-One 9.x
R12.1.2 R12.1..3
56
Key Takeaways
Significant Momentum around Release 12.1
– Compelling business value customers should evaluate now
– Skilled and trained partner ecosystem
– Large number of customers either implementing or live
Continued investment in E-Business Suite Releases
– Functional and Technical Innovation
– Application Integration
– Investments to Lower the TCO
Flexibility and Choice
– Uptake new capabilities within E-Business Suite
– Take advantage of integration to other Oracle products
– Build a roadmap driven by business value for your organization
Copyright © 2010, Oracle and/or its affiliates. All rights reserved.
57
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Questions and Answers
59