Jacques Bouchet
Applications Global Strategy
Oracle Financials Globalization
E-Business Suite Release 12.1 and beyond
The World is Changing Like Never Before
80 000
100 000
120 000
$ B
illio
ns (
2004
Rea
l Val
ues)
G7 E7
Relative Size of G7 and E7 Economies
The E7 will be 25% larger than the G7 by 2050 in terms of market exchange
rate (MER), or 75% larger in terms of purchasing power parity (PPP).
BUSINESS IMPLICATIONS
Companies must compete in
local markets with localized
solutions.
• Statutory financial reporting
0
20 000
40 000
60 000
$ B
illio
ns (
2004
Rea
l Val
ues)
2005
MER
2050
MER
2005
PPP
2050
PPP
PriceWaterhouseCoopers, “The World in 2050”
• Statutory financial reporting
• Local tax
• Local valuation and costing
• Local accounting
• Local statutory reporting
• Local payments
National and International Laws & Regulations
Actions by Competitors
Changing Customer Requirements
Industry Standards and Regulations
Tax Codes
11
Doing Business Globally is ComplexTop Drivers of Complexity
22
33
44
55
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 Tax Codes
Changing Workforce Attitudes
International Reporting Standards
Language and Cultural Differences
55
66
77
88
Direct impact on Finance
Source: PWC, 9th Annual Global CEO Survey
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
GLOBALIZATION
…Today’s workforce,
customers, suppliers, and
competitors have all become
global
COMPLEXITY AND COSTS
… Globalization brings
complexity with it, and
unnecessary complexity
drives up costs
Today’s CFO Agenda
INNOVATION AND GROWTH
… Not just any growth, but
growth that creates value
GOVERNANCE, RISK &
COMPLIANCE
…Companies are under
pressure to do more than
just meet the letter of the
law
Meet the Challenges of Globalization Oracle’s Globalization Solution
Solution
Extend core
business
processes and
international
support
Manage business
systems globally
• Standards-based business platform
•Native global platform
• Extensible Business Objects
•Global financial engines
Oracle
CapabilitiesRequirement
Ensure compliance
and adapt quickly to
regulatory change
Drive compliant
business processes
•Global financial engines
• eBTax
•BI Publisher
• Subledger Accounting
• Payment Engine
Comply with
local business
practices, rules,
and regulations
• Localizations
• Translations
•User-definable options
Deploy country-
specific capabilities
<Insert Picture Here>
Release Twelve
The Global Business Release:
A New Financial Architecture
Global Business Release
LocalizationsLocalizations
Oracle’s Globalization SolutionOracle’s Globalization Solution
• Localizations: Comply with local business
practices, rules, and regulations
• Applications: Deliver best practice business
processes
ApplicationsApplications
Financial Financial ManagementManagement
Human Capital Human Capital ManagementManagement
Supply Chain Supply Chain ManagementManagement
……
• Global Architecture: Adapt quickly to changing
global requirements
• Global Platform: Extend core business processes and international support
Global ArchitectureGlobal Architecture
SubledgerSubledgerAccountingAccounting
Tax Tax EngineEngine
Legal Legal Entities Entities LedgersLedgers
Payments Payments EngineEngine
Multi Org Multi Org AccessAccess
Inter Inter CompanyCompany
Global PlatformGlobal Platform
Common Information ModelCommon Information Model
Data Data FormatsFormats
LanguagesLanguagesBI BI
PublisherPublisherSOASOA AIAAIA
Localizations Delivery Model
ApplicationsApplications
LocalizationsLocalizations
Financial Financial ManagementManagement
Human Capital Human Capital ManagementManagement
Supply Chain Supply Chain ManagementManagement
Oracle’s Globalization SolutionOracle’s Globalization Solution
……
Product Localizations *
Delivered in product, by Development organization
Add-on Localizations *
Global ArchitectureGlobal Architecture
Accounting Accounting EngineEngine
Bank Bank ModelModel
LedgersLedgersPayments Payments EngineEngine
Tax Tax EngineEngine
MDMMDM
Global PlatformGlobal Platform
Common Information ModelCommon Information Model
Data Data FormatsFormats
LanguagesLanguages ReportingReporting SOASOA AIAAIA
Delivered via Metalink, by Regional Field Centers
Partner Localizations
Delivered by Partners
* Included in standard product license
Global Architecture Overview
• This presentation: focused on
• Architecture Content
• Localization coverage
• Not covering:
• Over 300 new features in Release 12.0• Over 300 new features in Release 12.0
• Additional 270 features in Release 12.1
• 9 new products in Release 12.1
• Analytics
• Fusion Middleware
Global Financial Architecture
Tax Tax Tax Tax Tax Tax Tax Tax InterInterInterInterInterInterInterInter
General Ledger General Ledger General Ledger General Ledger General Ledger General Ledger General Ledger General Ledger Ledger & Ledger Sets Ledger & Ledger Sets Ledger & Ledger Sets Ledger & Ledger Sets Ledger & Ledger Sets Ledger & Ledger Sets Ledger & Ledger Sets Ledger & Ledger Sets General Ledger General Ledger General Ledger General Ledger General Ledger General Ledger General Ledger General Ledger Ledger & Ledger Sets Ledger & Ledger Sets Ledger & Ledger Sets Ledger & Ledger Sets Ledger & Ledger Sets Ledger & Ledger Sets Ledger & Ledger Sets Ledger & Ledger Sets
Subledger Accounting (SLA) Subledger Accounting (SLA) Subledger Accounting (SLA) Subledger Accounting (SLA) Subledger Accounting (SLA) Subledger Accounting (SLA) Subledger Accounting (SLA) Subledger Accounting (SLA) Subledger Accounting (SLA) Subledger Accounting (SLA) Subledger Accounting (SLA) Subledger Accounting (SLA) Subledger Accounting (SLA) Subledger Accounting (SLA) Subledger Accounting (SLA) Subledger Accounting (SLA) DrDrDrDrDrDrDrDr CrCrCrCrCrCrCrCr
7 Major Initiatives
1. Legal Entities Ledger and Ledger Sets
2. Subledger Accounting
3. Tax EngineBankBankBankBankBankBankBankBankModelModelModelModelModelModelModelModel
Tax Tax Tax Tax Tax Tax Tax Tax EngineEngineEngineEngineEngineEngineEngineEngine
InterInterInterInterInterInterInterInterCompanyCompanyCompanyCompanyCompanyCompanyCompanyCompany
ProjectsProjectsReceivablesReceivablesInventoryInventory
Work in ProcessWork in Process PurchasingPurchasing PayablesPayables
MultiMultiMultiMultiMultiMultiMultiMulti--------OrgOrgOrgOrgOrgOrgOrgOrgAccessAccessAccessAccessAccessAccessAccessAccessControlControlControlControlControlControlControlControl
MultiMultiMultiMultiMultiMultiMultiMulti--------OrgOrgOrgOrgOrgOrgOrgOrgAccessAccessAccessAccessAccessAccessAccessAccessControlControlControlControlControlControlControlControl
3. Tax Engine
4. Intercompany
5. Bank Model
6. Multi-Org Access Control
7. BI Publisher
<Insert Picture Here>
Legal Entities
Legal Entity: Your Registered Companies
Holding
Company
Beijing Oracle
Software system
OARDC
Beijing
Shanghai Office
(Registered Branch)
OARDC
Shanghai team
Hangzhou Office
(Registered Branch)
Guangzhou Office
(Registered Branch)
Legal Entities
Registered Branches
Locations
LEs: Why and What?
• LEs pay the taxes - need tax registrations
• Trade between LEsneeds intercompany
Why We Care
• Addresses, Officers, etc.
• Enabled First Party stamp
• Added Establishments:
What we’ve done
• LEs own the moneyand bank accounts
• LEs file the accounts, take care of accounting
• LEs comply with whatever needscompliance: “legal” in LE
• Added Establishments:map Registrations to Authorities
• GRE/LE not touched
• Authorities as TCA parties
• LE Configurator
Where LE fits in…
Files
Transaction Taxes -
Complies &Files, Pays
Actual RegisteredCompanies, etc.
Et Cetera, 11iMaintains
its Subledger
Documents
in many OUs
LegalEntity
BusinessGroup
GRE/LE
OperatingUnits
Registrationswith Authorities in many OUs
Default Legal
Context (DLC)
Entity
Accounts
for itself
in a Ledger
or BSVs
Ledger
Unitswith Authorities
Files
Establishments
Registrationswith Authorities
ExistsLocallyExistsLocally
Legal Entity:
Vehicle for compliance
Legal Entity:
Vehicle for compliance
Transaction Taxes -
Complies &Files, Pays
Actual RegisteredCompanies, etc.
Et Cetera, 11iMaintains
its Subledger
Documents
in many OUs
Maintains
its Subledger
Documents
in many OUs
LegalEntity
BusinessGroup
GRE/LE
OperatingUnits
Registrationswith Authorities
Files Files
Get the LE right - compliance 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 in many OUs
Default Legal
Context (DLC)
in many OUs
Default Legal
Context (DLC)Accounts
for itself
in a Ledger
or BSVs
Accounts
for itself
in a Ledger
or BSVs
Entity
Ledger
Unitswith Authorities
FilesFiles
Establishments
Registrationswith Authorities
ExistsLocallyExistsLocally
Legal Entity:
Vehicle for compliance
Legal Entity:
Vehicle for compliance
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
<Insert Picture Here>
Ledger Sets
Ledger Sets Global Information At A Glance
Ledger SetLedger SetLedger SetLedger SetLedger SetLedger SetLedger SetLedger Set
US GAAPUS GAAPUS GAAPUS GAAPUS COAUS COAUS COAUS COAUS CalendarUS CalendarUS CalendarUS CalendarUSDUSDUSDUSD
Ledger CLedger CLedger CLedger CLedger CLedger CLedger CLedger CLedger CLedger CLedger CLedger CLedger CLedger CLedger CLedger C
US GAAPUS GAAPUS GAAPUS GAAPUS COAUS COAUS COAUS COA
Ledger BLedger BLedger BLedger BLedger BLedger BLedger BLedger B
French RulesFrench RulesFrench RulesFrench RulesPlan ComptablePlan ComptablePlan ComptablePlan Comptable
Ledger ALedger ALedger ALedger ALedger ALedger ALedger ALedger A
Share:Share:Share:Share:Share:Share:Share:Share:CCCCCCCChart of Accountshart of Accountshart of Accountshart of Accountshart of Accountshart of Accountshart of Accountshart of AccountsCCCCCCCCalendaralendaralendaralendaralendaralendaralendaralendar
Share:Share:Share:Share:Share:Share:Share:Share:CCCCCCCChart of Accountshart of Accountshart of Accountshart of Accountshart of Accountshart of Accountshart of Accountshart of AccountsCCCCCCCCalendaralendaralendaralendaralendaralendaralendaralendar
Key benefits to many Ledgers in one setKey benefits to many Ledgers in one setKey benefits to many Ledgers in one setKey benefits to many Ledgers in one set• DecisionDecisionDecisionDecision----driving business information always availabledriving business information always availabledriving business information always availabledriving business information always available• Simpler processing and General Ledger managementSimpler processing and General Ledger managementSimpler processing and General Ledger managementSimpler processing and General Ledger management• Data and definitions that can be shared and securedData and definitions that can be shared and securedData and definitions that can be shared and securedData and definitions that can be shared and secured
US COAUS COAUS COAUS COAUS CalendarUS CalendarUS CalendarUS CalendarEUREUREUREUR
Plan ComptablePlan ComptablePlan ComptablePlan ComptableFrench CalendarFrench CalendarFrench CalendarFrench CalendarEUREUREUREUR Ledger DLedger DLedger DLedger DLedger DLedger DLedger DLedger DLedger DLedger DLedger DLedger DLedger DLedger DLedger DLedger D
Reporting CurrencyReporting CurrencyReporting CurrencyReporting Currency
US GAAPUS GAAPUS GAAPUS GAAPUS COAUS COAUS COAUS COAUS CalendarUS CalendarUS CalendarUS CalendarAUDAUDAUDAUD
Currency in Twelve
• 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 • 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
Corporate
Ledger Set
adjustments eliminations
UK Ledger Set
US Ledger Set
Legal Ledger
UK1Legal Ledger
UK2Adj LedgerAdjustment
Adjustment
Ledger US
Legal Ledger
US1
Legal Ledger
US3
Legal Ledger
US2
Management
Ledger SetManagement
Ledger Set
UK1 UK2Adj Ledger
Corporate
Adjustment
Ledger UK
• 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 Sets
• Grant and tailor access to Ledgers and Balancing Segment
Values (i.e. Companies, Stores, Branches, etc.)
Data Access, Definition Access
Accountant
Privileges
GL Manager
View Write
Accountant
France LedgerFrance Ledger
Canada LedgerCanada Ledger
US LedgerUS Ledger
• Definition Access Sets – separate from data security
• Share, restrict definitions; privileges to view, modify, etc.
<Insert Picture Here>
SubLedger Accounting
Define Legal Entities& Associated Rules
Ensure Complete & Accurate
Setup via Online Checklist
Centralized Set-upAccounting Setup Manager
Define Multiple Ledgersfor Rules & Currencies
One Place to manageOne Place to manageOne Place to manageOne Place to manageYour Global AccountingYour Global AccountingYour Global AccountingYour Global Accounting
Rules, Currencies,Rules, Currencies,Rules, Currencies,Rules, Currencies,Ledgers,Ledgers,Ledgers,Ledgers,
And Ledger Sets And Ledger Sets And Ledger Sets And Ledger Sets Set Accounting Rulesfor All EBS Apps
Setup via Online Checklist
3333rdrdrdrd Party Party Party Party SystemsSystemsSystemsSystems3333rdrdrdrd Party Party Party Party SystemsSystemsSystemsSystems
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 repositoryCentralized Accounting Model, Centralized Accounting Model, Centralized Accounting Model, Centralized Accounting Model, Centralized Accounting Model, Centralized Accounting Model, Centralized Accounting Model, Centralized Accounting Model, Rules, Engine and RepositoryRules, Engine and RepositoryRules, Engine and RepositoryRules, Engine and RepositoryRules, Engine and RepositoryRules, Engine and RepositoryRules, Engine and RepositoryRules, Engine and RepositoryCentralized Accounting Model, Centralized Accounting Model, Centralized Accounting Model, Centralized Accounting Model, Centralized Accounting Model, Centralized Accounting Model, Centralized Accounting Model, Centralized Accounting Model, Rules, Engine and RepositoryRules, Engine and RepositoryRules, Engine and RepositoryRules, Engine and RepositoryRules, Engine and RepositoryRules, Engine and RepositoryRules, Engine and RepositoryRules, Engine and Repository
DrDrDrDrDrDrDrDr CrCrCrCrCrCrCrCr
General Ledger General Ledger General Ledger General Ledger General Ledger General Ledger General Ledger General Ledger General Ledger General Ledger General Ledger General Ledger General Ledger General Ledger General Ledger General Ledger
ProjectsProjectsProjectsProjectsProjectsProjectsProjectsProjectsProjectsProjectsProjectsProjectsProjectsProjectsProjectsProjectsReceivablesReceivablesReceivablesReceivablesReceivablesReceivablesReceivablesReceivablesReceivablesReceivablesReceivablesReceivablesReceivablesReceivablesReceivablesReceivables
PayablesPayablesPayablesPayablesPayablesPayablesPayablesPayablesPayablesPayablesPayablesPayablesPayablesPayablesPayablesPayables
InventoryInventoryInventoryInventoryInventoryInventoryInventoryInventoryInventoryInventoryInventoryInventoryInventoryInventoryInventoryInventory
3333rdrdrdrd Party Party Party Party SystemsSystemsSystemsSystems3333rdrdrdrd Party Party Party Party SystemsSystemsSystemsSystems
model and repository
• Accounting, reconciliation
and reporting facilitated by
centralized data model
• Streamline closing process
with common posting engine
• Auditable and transparent
entries accessible with full
drilldown
Rules, Engine and RepositoryRules, Engine and RepositoryRules, Engine and RepositoryRules, Engine and RepositoryRules, Engine and RepositoryRules, Engine and RepositoryRules, Engine and RepositoryRules, Engine and RepositoryRules, Engine and RepositoryRules, Engine and RepositoryRules, Engine and RepositoryRules, Engine and RepositoryRules, Engine and RepositoryRules, Engine and RepositoryRules, Engine and RepositoryRules, Engine and Repository
Work in ProcessWork in ProcessWork in ProcessWork in ProcessWork in ProcessWork in ProcessWork in ProcessWork in ProcessWork in ProcessWork in ProcessWork in ProcessWork in ProcessWork in ProcessWork in ProcessWork in ProcessWork in Process PurchasingPurchasingPurchasingPurchasingPurchasingPurchasingPurchasingPurchasingPurchasingPurchasingPurchasingPurchasingPurchasingPurchasingPurchasingPurchasing
Subledger AccountingCentralized Rules, Common Repository: Global Control
French RulesFrench RulesFrench RulesFrench RulesPlan ComptablePlan ComptablePlan ComptablePlan ComptableFrench CalendarFrench CalendarFrench CalendarFrench CalendarEUREUREUREUR
LedgerLedgerLedgerLedger
• Faster, Easier Reconciliation
• Corporate Rules = Accounting Standardization
•
Some Benefits
• Accounting Rules
• SarBox & 8th Dir.
• User Editable
• Subledger Daybooks (Journals)
What it is
Payables InvoicePayables InvoicePayables InvoicePayables InvoicePayables InvoicePayables InvoicePayables InvoicePayables Invoice
SubledgerSubledgerSubledgerSubledgerAccountingAccountingAccountingAccountingSubledgerSubledgerSubledgerSubledgerAccountingAccountingAccountingAccounting
DrDrDrDr CrCrCrCr• Local Rules =
Improved Local Compliance
• Automate “Apples to Apples” Adjustments
• Improved Audit-ability
• Improved Internal Control
(Journals)
• Subledger Balancing
• Reports, inquiries, open items, et cetera
• Multiple Representations
• Common Posting to GL Ledgers
• Real time or Periodic
Subledger AccountingTransaction Level Compliance
• 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
Event Class: Event Class: Event Class: Event Class: InvoicesEvent: Event: Event: Event: Invoice Approved Ledger: Ledger: Ledger: Ledger: France (EUR)GL Date:GL Date:GL Date:GL Date: 20-Sep-2005Description: Description: Description: Description: Office supplies TypeTypeTypeType Account DescriptionAccount DescriptionAccount DescriptionAccount Description DebitDebitDebitDebit CreditCreditCreditCredit
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
12,63612,63612,63612,636 12,63612,63612,63612,636
• Automate Foreign Operation adjustments
• Reconciliation
Platform
• “In accordance
with the
Underlying
Records”
US GAAPUS GAAPUS GAAPUS GAAPUS GAAPUS GAAPUS GAAPUS GAAPUS COAUS COAUS COAUS COAUS COAUS COAUS COAUS COAUS CalendarUS CalendarUS CalendarUS CalendarUS CalendarUS CalendarUS CalendarUS CalendarEUREUREUREUREUREUREUREUR
Ledger BLedger BLedger BLedger BLedger BLedger BLedger BLedger BFrench RulesFrench RulesFrench RulesFrench RulesFrench RulesFrench RulesFrench RulesFrench RulesPlan ComptablePlan ComptablePlan ComptablePlan ComptablePlan ComptablePlan ComptablePlan ComptablePlan ComptableFrench CalendarFrench CalendarFrench CalendarFrench CalendarFrench CalendarFrench CalendarFrench CalendarFrench CalendarEUREUREUREUREUREUREUREUR
Ledger ALedger ALedger ALedger ALedger ALedger ALedger ALedger A
Multiple Accounting RepresentationsGlobal Compliance – Statutory and Stock Market
DrDrDrDrDrDrDrDr CrCrCrCrCrCrCrCr
or
Multiple LedgersMultiple LedgersMultiple LedgersMultiple LedgersMultiple LedgersMultiple LedgersMultiple LedgersMultiple Ledgers
Subledger Subledger Subledger Subledger Subledger Subledger Subledger Subledger AccountingAccountingAccountingAccountingAccountingAccountingAccountingAccountingSubledger Subledger Subledger Subledger Subledger Subledger Subledger Subledger AccountingAccountingAccountingAccountingAccountingAccountingAccountingAccounting
Single subledger Single subledger Single subledger Single subledger Single subledger Single subledger Single subledger Single subledger transactiontransactiontransactiontransaction
can create multiplecan create multiplecan create multiplecan create multipleaccounting accounting accounting accounting
representationsrepresentationsrepresentationsrepresentationsand in multiple and in multiple and in multiple and in multiple
currenciescurrenciescurrenciescurrencies
DrDrDrDrDrDrDrDr CrCrCrCrCrCrCrCr
Payables InvoicePayables InvoicePayables InvoicePayables InvoicePayables InvoicePayables InvoicePayables InvoicePayables InvoicePayables InvoicePayables InvoicePayables InvoicePayables InvoicePayables InvoicePayables InvoicePayables InvoicePayables Invoice
Chose to use an Chose to use an Chose to use an Chose to use an Chose to use an Chose to use an Chose to use an Chose to use an alternative Ledger alternative Ledger alternative Ledger alternative Ledger ----
or just an Adjustmentor just an Adjustmentor just an Adjustmentor just an AdjustmentLedger or segmentLedger or segmentLedger or segmentLedger or segment
<Insert Picture Here>
EBusiness Tax
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
Business NeedsBusiness Needs SolutionSolution
Centralized Global TaxLess Complex Global Tax Compliance
Regulations • Tax simulator for setup, rules, and transactions
Local Compliance
• Tax registrations and tax reporting codes
• Tax lines determine applicable taxes
• Configurable tax reporting templates
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.
Oracle E-Business TaxProcessing taxes for transactions and reporting
Single Interface for TransactionsSingle Interface for Transactions
Parties
PlacesPayables
Purchasing
Transactions
���� Compliance, Assurance ���� Efficiency, Global Visibility
Tax
Transactions
Tax
Transactions
Taxes,
Rules
Taxes,
Rules
Determine
Regimes
Taxable
Basis
Calculate
Tax
Amount
Tax Status
& Rate
Applicable
Taxes
Transparent Integration with Tax Partner ServicesTransparent Integration with Tax Partner Services
Places
ProductsProducts
ProcessesProcesses
Payables
Receivables
Sales Orders
…Tax Reports- PDF, HTML, RTF- Security enabled
���� Extensible ���� Service Oriented Architecture
Products
Processes
<Insert Picture Here>
Advanced Intercompany
AGIS
Web UIWeb UI
Open Open Interfaces / Interfaces /
APIAPI
Excel Excel
Advanced GlobalIntercompany
System
Advanced GlobalIntercompany
SystemSubledgerSubledgerInvoices &Invoices &DocumentsDocuments
�� Generate subledger invoicesGenerate subledger invoices
�� Control transaction entry with Control transaction entry with Intercompany CalendarIntercompany Calendar
Online Online Reconciliation Reconciliation ReportingReporting
Advanced Global Intercompany SystemAddress the Top Barrier to a Fast Close
Excel Excel
(Web ADI)(Web ADI)Intercompany CalendarIntercompany Calendar
�� Fully Configurable Approval RulesFully Configurable Approval Rules
�� Flexible Security ModelFlexible Security Model
�� Centrally defined Intercompany Centrally defined Intercompany AccountsAccounts
ReportingReporting
XML XML Publisher Publisher ReportsReports
Subledger Subledger Subledger Subledger Subledger Subledger Subledger Subledger AccountingAccountingAccountingAccountingAccountingAccountingAccountingAccountingSubledger Subledger Subledger Subledger Subledger Subledger Subledger Subledger AccountingAccountingAccountingAccountingAccountingAccountingAccountingAccounting
DrDrDrDrDrDrDrDr CrCrCrCrCrCrCrCr
General General General General General General General General Ledger Ledger Ledger Ledger Ledger Ledger Ledger Ledger ReceivablesReceivablesReceivablesReceivablesReceivablesReceivablesReceivablesReceivablesReceivablesReceivablesReceivablesReceivablesReceivablesReceivablesReceivablesReceivables PayablesPayablesPayablesPayablesPayablesPayablesPayablesPayablesPayablesPayablesPayablesPayablesPayablesPayablesPayablesPayables
<Insert Picture Here>
Banking Model
Payment Engine
• Bank account is now associated with LE entity rather than Operating Unit
• Single bank account serves multiple Operating Units
• Any and all Operating
Centralized BankingShared Services Disbursements
LELELELE
OU AOU AOU AOU A OU BOU BOU BOU B OU COU COU COU C
• Any and all Operating Units associated with a ledger can be permitted to use the bank account
AssetsAssetsAssetsAssetsAssetsAssetsAssetsAssets
ProjectsProjectsReceivablesReceivables
PayablesPayablesPurchasingPurchasingPurchasingPurchasingPurchasingPurchasingPurchasingPurchasing
ProjectsProjectsProjectsProjectsProjectsProjectsProjectsProjectsReceivablesReceivablesReceivablesReceivablesReceivablesReceivablesReceivablesReceivables
PayablesPayablesPayablesPayablesPayablesPayablesPayablesPayables
InventoryInventoryInventoryInventoryInventoryInventoryInventoryInventory
Plus� Centralized Credit Card Model� Credit Card Encryption� Supplier & Customer Banks in TCA
Work in Work in Work in Work in Work in Work in Work in Work in ProcessProcessProcessProcessProcessProcessProcessProcessWork in Work in Work in Work in Work in Work in Work in Work in ProcessProcessProcessProcessProcessProcessProcessProcess
Bank Model: Example of what you can doPay invoices from different OUs with 1 instruction
OU A
OU B
• New Payments Module
• New Bank Model
• New Bank & Credit Card Features
OU CBank
Single Payment Instruction
Invoices
Payments
Sub Ledger Sub Ledger Sub Ledger Sub Ledger Sub Ledger Sub Ledger Sub Ledger Sub Ledger AccountingAccountingAccountingAccountingAccountingAccountingAccountingAccountingSub Ledger Sub Ledger Sub Ledger Sub Ledger Sub Ledger Sub Ledger Sub Ledger Sub Ledger AccountingAccountingAccountingAccountingAccountingAccountingAccountingAccounting
Banks
Define Owner of Bank Account
Legal Entity
Banks
Grant OU Access to Bank Account
Operating Units
<Insert Picture Here>
Multi-Org
Access Control
HollandHollandHollandHollandLegal Entity
DenmarkDenmarkDenmarkDenmarkLegal Entity
BelgiumBelgiumBelgiumBelgiumLegal Entity Functional TasksFunctional Tasks
Perform multiple tasks across operating units Perform multiple tasks across operating units Perform multiple tasks across operating units Perform multiple tasks across operating units without changing responsibilitieswithout changing responsibilitieswithout changing responsibilitieswithout changing responsibilities
MOAC: Multi-Org Access ControlRole based access to Operating Units
ResponsibilityResponsibilityResponsibilityResponsibilityResponsibilityResponsibilityResponsibilityResponsibility ResponsibilityResponsibilityResponsibilityResponsibilityResponsibilityResponsibilityResponsibilityResponsibility ResponsibilityResponsibilityResponsibilityResponsibilityResponsibilityResponsibilityResponsibilityResponsibility
Legal Entity Legal EntityLegal Entity Functional Tasks
�Order Management
�Dunning, Collections, Billing
�Requisition, Demand & Purchase Orders
�Receiving & Drop Ship
� Invoice Receipt, Disbursement
�Customer Data Management
�Accounting Setup
Functional Tasks
�Order Management
�Dunning, Collections, Billing
�Requisition, Demand & Purchase Orders
�Receiving & Drop Ship
� Invoice Receipt, Disbursement
�Customer Data Management
�Accounting Setup
SingleSingleSingleSingle ResponsibilityResponsibilityResponsibilityResponsibility
BelgiumBelgiumBelgiumBelgiumOperating Unit
HollandHollandHollandHollandOperating Unit
DenmarkDenmarkDenmarkDenmarkOperating Unit
Multiple Organization Access Control
Summary 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• 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
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• 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
<Insert Picture Here>
New Standard
Reporting Paradigm
InvoicesInvoices ChecksChecks
BI PublisherEnable Business Users to Format and Deliver Documents
Integrated Solution For:
• Formatting
• Managing
• Delivering
Your Business Documents
XML/EFT/EDIXML/EFT/EDI
ReportsReportsLabelsLabelsXML PublisherXML Publisher
DestinationsDestinations
• Meet Business
Requirements
• Remove Complexity
• Reduce Maintenance Cost
• Reduce TCO
Integrate Out-of-the-Box with R9 CRM, ESA, FMS, HCM, and SCM
Templates
XML Publisher
Oracle Applications
CRM
Projects
FMS
Output FormatsData Sources
RTF
PublishingEngine
XML
• Printer
• Fax
HTML
XML
Order
Destination
EDI
Excel
BI PublisherBusiness Users Format and Deliver Documents
Integrate Out-of-the-Box with Oracle Applications
TemplatesFMS
HCM
SCM
Any XML
Data Source
Business User
Letters
FundTransfers
OnlinePaychecks
OrderConfirmations
BillsGovernmentGrant Forms
The New Standard Reports ParadigmBI 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,
Benefits
• Replaces many standard
reports with data extracts
and templates
• Merges custom templates
and data extracts at run-time
What’s Happening
(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
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
Financial Reporting with BI PublisherMore than 400 Modifiable Formats in Financials
Product Formats Product Formats
Assets 22 IT Audit 2
Cash 3 Loans 6
Collections 15 Payables 9
Common Modules 10 Payments 120
Financials Financials
Consolidation Hub21 Public Sector 6
General Ledger 14 Receivables 10
Globalizations 92Subledger
Accounting17
Internal Controls
Manager25 Tax 23
• Work GloballyWork GloballyWork GloballyWork Globally• Global Procurement• Global Billing• Global Dunning
• Manage GloballyManage GloballyManage GloballyManage Globally• Global Set-up• Global Ledger Sets
What the Architecture Gets You
Release 12 Subsidiary LEs….
…account for themselves in Ledgers, and…
Ledger SetLedger SetLedger SetLedger Set
Company CompanyCompany
• Global Ledger Sets worldwide insight
• Global Reporting• Comply LocallyComply LocallyComply LocallyComply Locally
• Statutory Accounting• Transaction Tax• Legal Entity processing
and reporting
ProjectsProjectsReceivablesReceivablesInventoryInventory
Work in ProcessWork in Process PurchasingPurchasing PayablesPayables
MultiMultiMultiMultiMultiMultiMultiMulti--------OrgOrgOrgOrgOrgOrgOrgOrgAccessAccessAccessAccessAccessAccessAccessAccessControlControlControlControlControlControlControlControl
MultiMultiMultiMultiMultiMultiMultiMulti--------OrgOrgOrgOrgOrgOrgOrgOrgAccessAccessAccessAccessAccessAccessAccessAccessControlControlControlControlControlControlControlControl
manage their subledger data in Operating Units
Data ManagementLeveraging centralized data model
PayablesPayablesPayablesPayablesPayablesPayablesPayablesPayablesPurchasingPurchasingPurchasingPurchasingPurchasingPurchasingPurchasingPurchasing
Global TaxGlobal TaxGlobal TaxGlobal Tax PaymentsPaymentsPaymentsPaymentsPaymentsPaymentsPaymentsPayments
SuppliersAuthorities, etc Party
Information
Cash Cash Cash Cash ManagementManagementManagementManagementBanks and Branches
Oracle Fusion MiddlewareOracle Fusion Middleware
Trading Community Architecture
Trading Community Architecture
ERPERPERPERPERPERPERPERP CRMCRMCRMCRMCRMCRMCRMCRM 3333rdrdrdrd PartyPartyPartyParty3333rdrdrdrd PartyPartyPartyParty
Comply LocallyLegislative Watch Process
• A team of domain experts from around the world monitor and analyze legal
and regulatory requirements
Legislative Updates and
TrendsMONITOR ANALYZE IMPLEMENT
Customer Requirements
Applications Global Strategy
Oracle LOBs
Applications Global Strategy
Development
•Provide input to development
planning process
Explain how product handles legal requirements
LocalizationsComply with Local Rules and Regulations
Argentina
Australia
Austria
Belgium
Brazil
Bulgaria
Canada
Mexico
Netherlands
New Zealand
Norway
Peru
Poland
Portugal
Finland
France
Germany
Greece
Hong Kong
Hungary
India
Spain
Sweden
Switzerland
Taiwan
Turkey
UAE
UkraineCanada
Chile
China
Colombia
Croatia
Czech Republic
Denmark
Portugal
Romania
Russia
Saudi Arabia
Singapore
Slovakia
South Africa
India
Ireland
Israel
Italy
Japan
Korea
Kuwait
Ukraine
United Kingdom
United States
Venezuela
Oracle E-Business Suite is used in over 150 countries.
Localizations - EBS 12Comply with Local Rules and Regulations
Argentina
Australia
Austria
Belgium
Brazil
Bulgaria
Canada
Mexico
Netherlands
New Zealand
Norway
Peru
Poland
Portugal
Finland
France
Germany
Greece
Hong Kong
Hungary
India
Spain
Sweden
Switzerland
Taiwan
Turkey
UAE
UkraineCanada
Chile
China
Colombia
Croatia
Czech Republic
Denmark
Portugal
Romania
Russia
Saudi Arabia
Singapore
Slovakia
South Africa
India
Ireland
Israel
Italy
Japan
Korea
Kuwait
Ukraine
United Kingdom
United States
Venezuela
Oracle E-Business Suite is used in over 150 countries.
Finding Additional InformationAccelerate your evaluation and planning
My Oracle Support E-Business Suite Release 12.1 Information Center
Knowledge > Tools and Training > Release 12.1 Info Center (Doc ID: 806593.1)
Finding Additional InformationEBS Globalization Center (Doc ID: 973912.1
My Oracle Support E-Business Suite Release 12.1 Information Center
Knowledge > Tools and Training > Release 12.1 Info Center (Doc ID: 806593.1)
R12.x Localizations Information
Countries Data Sheet
Finding Additional InformationEBS Product Locailzation
My Oracle Support E-Business Suite Release 12.1 Information Center
Knowledge > Tools and Training > Release 12.1 Info Center (Doc ID: 806593.1)
Finding Additional InformationEBS Add-On Localization
My Oracle Support E-Business Suite Release 12.1 Information Center
Knowledge > Tools and Training > Release 12.1 Info Center (Doc ID: 806593.1)
Finding Additional InformationEBS Financials Legislative Updates
My Oracle Support E-Business Suite Release 12.1 Information Center
Knowledge > Tools and Training > Release 12.1 Info Center (Doc ID: 806593.1)
My Oracle Support (formerly MetaLink): Advisor Webcast Program
47 Live Webcasts across Oracle E-Business SuiteKnowledge > Tools and Training > Training (Web Seminars)
(Doc ID: 398877.1)
Finding Additional InformationAccelerate your evaluation and planning
Questions and Answers
Fusion V1.x
Hyperion EPM 11.x
E-Business Suite 12.x
E-Business Suite 12.1
Fusion V1PeopleSoft
Enterprise 9.x
Hyperion EPM 11.1.1
PeopleSoft Enterprise 9.1
E-Business Suite 12.1.3
JD Edwards World A9.x
JD Edwards E1 9.0
JD Edwards World A9.2
Agile PLM 9.3.1
JD Edwards E1 9.x
E-Business Demantra 7.2
Demantra 7.3 GTM 6.1 Demantra 7.x
Continued Investment
E-Business Suite 12
Demantra 7.2Demantra 7.3OTM 6.0
GTM 6.1OTM 6.1
Demantra 7.xGTM/OTM 6.x
PeopleSoft Enterprise 9.0
Agile PLM 9.2.2.4
Agile PLM 9.3Hyperion EPM
11.1.2Agile PLM 9.x
JD Edwards World A9.1
Agile PLM for Process 5.2
Agile PLM for Process 6
Siebel CRM 8.2 for Pub Sec
Agile PLM for Process 6.x
JD Edwards E1 8.12
Siebel CRM 8.0
CRM On Demand 15
Siebel CRM 8.1.1
CRM On Demand 18
Siebel CRM 8.x
CRM On Demand 12
CRM On Demand 13
CRM On Demand 14
CRM On Demand 16
CRM On Demand 17
CRM On Demand 19/20
2006 2007 2008 2009 2010 2011+
Recommended ActionsUpgrade, Adopt, Extend
Upgrade to Latest Oracle
Applications Release
AdoptStandards-Based
Technology
Extend Business Value with
Co-existence Opportunities
E-Business Suite 12.1E-Business Suite 12.1
Oracle SOA Suite and AIAOracle SOA Suite and AIA
Oracle OBIEEOracle OBIEE
Fusion AppsFusion AppsVCP 12.1Demantra 7.3VCP 12.1
Demantra 7.3BI AppsBI Apps
JD Edwards E1 9.0
JD Edwards E1 9.0
Oracle ADF & WebCenterOracle ADF & WebCenter
Oracle Identity Mgmt
Oracle Identity Mgmt
Oracle Content ManagementOracle Content Management
Oracle Enterprise Mgr
Oracle Enterprise Mgr
Supply Chain:
- VCP
- Demantra
- Agile
Supply Chain:
- VCP
- Demantra
- AgileJD Edwards World A9.2JD Edwards World A9.2
OTM 6.1WMS 12.1OTM 6.1WMS 12.1
PeopleSoft Enterprise 9.1PeopleSoft
Enterprise 9.1
Agile PLM 9.3Agile PLM 9.3
Agile PLM for Process 6
Agile PLM for Process 6
CRMOn Demand
CRMOn Demand
HyperionEPM
HyperionEPM
GRCGRC
Industry AppsIndustry Apps
Siebel CRM 8.2Siebel CRM 8.2
<Insert Picture Here>
It is not all architecture:
+300 Features R12.0
+270 Features R12.1
9 new products in R12.1Oracle Advanced Planning Command Center
Oracle Demand Signal Repository
Oracle Manufacturing Operations Center
Oracle Service Parts Planning
Oracle Site Hub
Oracle PIM for Retail
Oracle Supplier Ship & Debit
Oracle Price Protection
Oracle Landed Cost Management
<Insert Picture Here>
Appendix:300+ New Features
New in Financial Control & ReportingHighly automated financials processing drives efficiencies
EFFICIENCYEFFICIENCYEFFICIENCYEFFICIENCY
• Centralized accounting setup
• Streamlined multiple ledger processing and reporting• Parallel financial reporting• Automatic reporting currency conversion
• Replacement for disabled accounts
• Data security across legal entities, ledgers or
FLEXIBILITYFLEXIBILITYFLEXIBILITYFLEXIBILITY
AUDITABILITYAUDITABILITYAUDITABILITYAUDITABILITY
• Data security across legal entities, ledgers or balancing segment values
• Control Accounts
• Accounting and reporting sequencing• Journal line reconciliation
New in Procure-to-PayIntegrated Suite Optimizes Working Capital
PRODUCTIVITYPRODUCTIVITYPRODUCTIVITYPRODUCTIVITY
COST SAVINGSCOST SAVINGSCOST SAVINGSCOST SAVINGS
• Document line level entry and approval
• Non-PO invoice accounting entry by approvers
• Invoice dispute management
• Real-time status of purchasing contract T&Cs and invoicing activity in Oracle Payables and Purchasing
• Self-service opportunities via iSupplier Portal to a broader set of their suppliers
COST SAVINGSCOST SAVINGSCOST SAVINGSCOST SAVINGS
INTEGRATIONINTEGRATIONINTEGRATIONINTEGRATION
broader set of their suppliers
• Self service entry extended to receipt matched, complex Work Purchase Orders, and non-PO invoices
• Streamlined supplier setup and maintenance as part of Trading Community Architecture (TCA)
• Access to TCA features
New in Credit-to-CashAccelerate cash cycle and manage revenue with fiscal discipline
COMPLIANCECOMPLIANCECOMPLIANCECOMPLIANCE
BETTER CASH FLOWBETTER CASH FLOWBETTER CASH FLOWBETTER CASH FLOW
• Daily revenue recognition• Deferral reason for goods and services• COGS and revenue matching• Line level cash application
• More efficient payment application with Oracle Payments integration
• More targeted and efficient collections with configurable matrix
• Visibility to carry-forward balances with cycle-based billing
• Payment application according to customer preferences
BETTER CASH FLOWBETTER CASH FLOWBETTER CASH FLOWBETTER CASH FLOW
INDUSTRY SUPPORTINDUSTRY SUPPORTINDUSTRY SUPPORTINDUSTRY SUPPORT
configurable matrix
• Credit recommendation enhancements
• Conversion of delinquent receivables to payment plans
• Centralized and consolidated bank model
• Single bank account shared by multiple organizations
• Bank account transfers directly in Cash Management
• Funds optimization with cash pooling and zero balancing
• Configurable and centralized payments engine
• Full audit trail and control with single point of payment administration
New in Cash and TreasuryOptimize Cash and Treasury Operations
EFFICIENCYEFFICIENCYEFFICIENCYEFFICIENCY
COMPLEXITYCOMPLEXITYCOMPLEXITYCOMPLEXITYpayment administration
• Straight through processing (STP) for payments
• Real-time visibility into cash inflows and outflows
• Large library of payment formats and validations
• Simplified reconciliation of bank statements to cash transactions in multiple organizations
• Support for new bank account balance types in bank statement import
• Bank account-level reconciliation options and tolerances
COMPLEXITYCOMPLEXITYCOMPLEXITYCOMPLEXITY
FLEXIBILITYFLEXIBILITYFLEXIBILITYFLEXIBILITY
New in Asset ManagementMaximize return on assets
EFFICIENCYEFFICIENCYEFFICIENCYEFFICIENCY
PERFORMANCEPERFORMANCEPERFORMANCEPERFORMANCE
• Automate legacy asset conversion with enhanced preparation of Mass Additions
• Perform rollback on select assets with Automatic Depreciation Rollback
• Group Assets to include “Units of Production” method
• Energy straight-line depreciation method
• Asset impairment of a producing asset
INDUSTRY SUPPORTINDUSTRY SUPPORTINDUSTRY SUPPORTINDUSTRY SUPPORT
Depreciation Rollback
New in Travel & ExpenseLower the total cost of travel and expense
LOWER COSTSLOWER COSTSLOWER COSTSLOWER COSTS
ACCURACYACCURACYACCURACYACCURACY
• CONUS and OCONUS global per diem rates
• Per diem and policy schedules
• Expense splitting across multiple accounting segments
• Self-service cash advance application during entry
• Bar code generation
• Streamlined receipts management with receipts tracking and receipts missing capabilities
PRODUCTIVITYPRODUCTIVITYPRODUCTIVITYPRODUCTIVITY
• Enhanced cost center and projects approvals