Overview of the New Financial Architecture in Oracle - Northern ...


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Overview of the New Financial Architecture in Oracle - Northern ...

  1. 1. Overview of the New Financial Architecture in Oracle E-Business Financials Release 12 Julie Peacock Director, Financials Strategy
  2. 2. Work Globally Operating Across Boundaries CHALLENGES <ul><li>Parallel financial reporting through ledgers </li></ul><ul><li>Standard accounting policies and rules </li></ul><ul><li>Global tax engine </li></ul><ul><li>Access controls for shared services </li></ul><ul><li>Shared bank services </li></ul><ul><li>Advanced global intercompany processes </li></ul><ul><li>Common system for global compliance </li></ul><ul><li>Greater auditability and transparency with multiple ledger structure and centralized accounting policies and rules </li></ul>CAPABILITIES Operate more efficiently across applications, divisions, and regions Simplify managing and monitoring global compliance Meet diverse global accounting and tax requirements
  3. 3. Centralized Financial Architecture More Control with Even Greater Flexibility Projects Receivables Payables 3 rd Party Systems Centralized Accounting Model Inventory 3 rd Party Systems General Ledger General Ledger Work in Process Purchasing Drilldown E-Business Suite Banking Global Tax Intercompany Accounting Shared Services Access Control Multiple Ledgers Accounting Policies Banking Global Tax Intercompany Accounting 1 2 3 4 5 6 CENTRALIZED FUNCTIONS Dr Cr -%
  4. 4. Multiple Ledgers Ledgers and Ledger Sets 1 <ul><li>Open/Close Periods </li></ul><ul><li>Create Journals </li></ul><ul><li>Translate Balances </li></ul>Ledger Sets <ul><li>Perform Allocations </li></ul><ul><li>View Information </li></ul><ul><li>Create Reports </li></ul>Perform cross-ledger functions: US GAAP US COA US Calendar $ Ledger A US GAAP US COA US Calendar AUD Ledger B French Rules Plan Comptable French Calendar EUR US GAAP US COA US Calendar EUR Ledger C Ledger D
  5. 5. Multiple Ledgers Parallel Financial Reporting US GAAP US COA US Calendar EUR Ledger A French Rules Plan Comptable French Calendar EUR Ledger B Centralized Accounting Single business transaction can create multiple accounting representations and in multiple currencies Dr Cr Payables Invoice Reporting currency 1
  6. 6. Centralized Accounting Policies Greater Control, Transparency and Auditability Payables 3 rd Party Systems <ul><li>Internal control and compliance with multiple accounting policies through user-defined accounting rules </li></ul><ul><li>Single source of truth for all subsystem accounting activity with a common data model and repository </li></ul><ul><li>Accounting, reconciliation and reporting facilitated by centralized data model </li></ul><ul><li>Streamline closing process with common posting engine </li></ul><ul><li>Auditable and transparent entries accessible with full drilldown </li></ul>Work in Process Purchasing 2 Projects Receivables 3 rd Party Systems Inventory Centralized Accounting Model, Rules, Engine and Repository Dr Cr General Ledger General Ledger
  7. 7. Accounting Setup Manager Single Page for Accounting Setup <ul><li>Legal Entities </li></ul><ul><li>Ledgers </li></ul><ul><li>Currencies </li></ul><ul><li>Balancing Segments </li></ul><ul><li>Subledger Accounting </li></ul><ul><li>Operating Units </li></ul><ul><li>Balancing Options </li></ul>2
  8. 8. Centralized Banking Shared Services Disbursements and Receipts Assets Projects Receivables Payables Purchasing Projects Receivables Payables Inventory Work in Process 3 Legal Entity Op Unit Op Unit Op Unit Bank account shared by multiple operating units <ul><li>Set up accounting policies </li></ul><ul><li>Select invoices from multiple operating units </li></ul><ul><li>Format for bank and disbursement countries </li></ul><ul><li>Send single instruction to bank </li></ul><ul><li>Record separate payments for each operating unit </li></ul>How it Works: Disbursements
  9. 9. Banks Define Owner of Bank Account Legal Entity
  10. 10. Banks Grant OU Access to Bank Account Operating Units
  11. 11. Centralized Global Tax Less Complex Global Tax Compliance Transactions … 4 Tax Transactions Taxes, Rules Determine Regimes Taxable Basis Calculate Tax Amount Tax Status & Rate Applicable Taxes Single Interface for Transactions Transparent Integration with Tax Partner Services Parties Places Products Processes Payables Receivables Purchasing Sales Orders
  12. 12. Centralized Intercompany Faster Period-End Close Transactions Online Reconciliation Reporting Advanced Global Intercompany System <ul><li>Subledger invoices </li></ul><ul><li>Intercompany calendar to control transactions </li></ul><ul><li>Configurable approval rules </li></ul><ul><li>Flexible security model </li></ul><ul><li>Centrally defined intercompany accounts </li></ul>Subledger Accounting Dr Cr Balanced transaction Intercompany balancing lines Web UI Open Interfaces / API Excel (Web ADI) XML Publisher Reports Subledger Invoices & Documents 5 Yes No
  13. 13. Shared Services Access Control More Productive Shared Services Operations Responsibility Responsibility Responsibility Holland Legal Entity Denmark Legal Entity Belgium Legal Entity Belgium Operating Unit Holland Operating Unit Denmark Operating Unit Responsibility Responsibility Responsibility <ul><li>Functional Tasks </li></ul><ul><li>Accounting </li></ul><ul><li>Billing, Dunning & Collections </li></ul><ul><li>Procurement </li></ul><ul><li>Order Management </li></ul><ul><li>Payments </li></ul><ul><li>Data Management </li></ul>Belgium Operating Unit Holland Operating Unit Denmark Operating Unit 6 Single Responsibility
  14. 14. XML Publisher Business Users Format and Deliver Documents Integrate Out-of-the-Box with Oracle Applications Templates XML Publisher Oracle Applications CRM ESA FMS HCM SCM Output Formats Data Sources Any XML Data Source PDF RTF Business User Publishing Engine XML <ul><li>Email </li></ul><ul><li>Printer </li></ul><ul><li>Fax </li></ul>HTML XML Letters Fund Transfers Online Paychecks Order Confirmations Bills Government Grant Forms Destination EDI Excel
  15. 15. Financial Reporting with XML Publisher Nearly 400 Configurable Formats 23 Tax 25 Internal Controls Manager 17 Subledger Accounting 92 Globalizations 10 Receivables 14 General Ledger 6 Public Sector 21 Financials Consolidation Hub 120 Payments 10 Common Modules 9 Payables 15 Collections 6 Loans 3 Cash 2 IT Audit 22 Assets Formats Product Formats Product
  16. 16. Comprehensive Integration Repository <ul><li>Enable key integration types </li></ul><ul><ul><li>Business to Business </li></ul></ul><ul><ul><li>Enterprise Application Integration </li></ul></ul><ul><ul><li>Business Process Management </li></ul></ul><ul><ul><li>Business Activity Monitoring </li></ul></ul><ul><li>Support industry-standard messages </li></ul><ul><li>Support standards-based XML documents </li></ul><ul><li>Search and view available interfaces via powerful UI </li></ul><ul><li>Automatically keep in step with source code via standard patching </li></ul>A Catalog of All EBS Integration Points <ul><li>Web Services </li></ul><ul><li>Public Java & PL/SQL APIs </li></ul><ul><li>Business Events </li></ul><ul><li>Batch Interfaces </li></ul>
  17. 17. Straightforward Upgrade Operating Unit (MOAC) Set of Books <ul><li>Same Responsibilities </li></ul><ul><li>Same Tables and IDs </li></ul><ul><li>Customization Continuity </li></ul>Today Release 12 Subledger Accounting Product Accounting Operating Unit Ledger in a Ledger Set
  18. 18. New in Procure-to-Pay Integrated Suite Optimizes Working Capital PRODUCTIVITY COST SAVINGS INTEGRATION <ul><li>Document line level entry and approval </li></ul><ul><li>Non-PO invoice accounting entry by approvers </li></ul><ul><li>Invoice dispute management </li></ul><ul><li>Real-time status of purchasing contract T&Cs and invoicing activity in Oracle Payables and Purchasing </li></ul><ul><li>Self-service opportunities via iSupplier Portal to a broader set of their suppliers </li></ul><ul><li>Self service entry extended to receipt matched, complex Work Purchase Orders, and non-PO invoices </li></ul><ul><li>Streamlined supplier setup and maintenance as part of Trading Community Architecture (TCA) </li></ul><ul><li>Access to TCA features </li></ul>
  19. 19. New in Credit-to-Cash Accelerate cash cycle and manage revenue with fiscal discipline <ul><li>Visibility to carry-forward balances with cycle-based billing </li></ul><ul><li>Payment application according to customer preferences </li></ul>COMPLIANCE BETTER CASH FLOW INDUSTRY SUPPORT <ul><li>Daily revenue recognition </li></ul><ul><li>Deferral reason for goods and services </li></ul><ul><li>COGS and revenue matching </li></ul><ul><li>Line level cash application </li></ul><ul><li>More efficient payment application with Oracle Payments integration </li></ul><ul><li>More targeted and efficient collections with configurable matrix </li></ul><ul><li>Credit recommendation enhancements </li></ul><ul><li>Conversion of delinquent receivables to payment plans </li></ul>
  20. 20. New in Cash and Treasury Optimize Cash and Treasury Operations <ul><li>Centralized and consolidated bank model </li></ul><ul><li>Single bank account shared by multiple organizations </li></ul><ul><li>Bank account transfers directly in Cash Management </li></ul><ul><li>Funds optimization with cash pooling and zero balancing </li></ul><ul><li>Configurable and centralized payments engine </li></ul><ul><li>Full audit trail and control with single point of payment administration </li></ul><ul><li>Straight through processing (STP) for payments </li></ul><ul><li>Real-time visibility into cash inflows and outflows </li></ul><ul><li>Large library of payment formats and validations </li></ul><ul><li>Simplified reconciliation of bank statements to cash transactions in multiple organizations </li></ul><ul><li>Support for new bank account balance types in bank statement import </li></ul><ul><li>Bank account-level reconciliation options and tolerances </li></ul>EFFICIENCY COMPLEXITY FLEXIBILITY
  21. 21. New in Asset Management Maximize return on assets <ul><li>Group Assets to include “Units of Production” method </li></ul><ul><li>Energy straight-line depreciation method </li></ul><ul><li>Asset impairment of a producing asset </li></ul>EFFICIENCY PERFORMANCE INDUSTRY SUPPORT <ul><li>Automate legacy asset conversion with enhanced preparation of Mass Additions </li></ul><ul><li>Perform rollback on select assets with Automatic Depreciation Rollback </li></ul>
  22. 22. Summary: New Capabilities in R12 <ul><li>Objective </li></ul><ul><ul><li>Simplify the ability to manage across business functions, organizations and locations </li></ul></ul><ul><li>Requirements </li></ul><ul><ul><li>Improve support for shared service operations </li></ul></ul><ul><ul><li>Ease access to aggregated data for management reporting </li></ul></ul><ul><ul><li>Ensure accurate accounting, tax and currency treatment of transactions </li></ul></ul><ul><li>Process </li></ul><ul><ul><li>Separated operational activities from financial management tasks </li></ul></ul><ul><ul><li>Defined new, logical business structures to easily group information </li></ul></ul><ul><ul><li>Rationalized trading partner data into a single location </li></ul></ul><ul><li>Results </li></ul><ul><ul><li>A single responsibility to access and transact on multiple organizations </li></ul></ul><ul><ul><li>A single ledger to manage multiple currencies </li></ul></ul><ul><ul><li>Ledger sets to manage accounting processes across ledgers </li></ul></ul><ul><ul><li>Centralized rules engines for tax, accounting and inter company </li></ul></ul><ul><ul><li>A separate and simple payment creation and delivery solution </li></ul></ul><ul><ul><li>Centralized trading partners (suppliers, banks, first party legal entities) </li></ul></ul><ul><ul><li>Simplified reporting via XML Publisher </li></ul></ul><ul><ul><li>Netting across trading partners </li></ul></ul>
  23. 23. Where to Find Additional Information <ul><li>E-Business Suite R12 Information Center </li></ul><ul><ul><li>Metalink: Headlines tab -> E-Business Suite </li></ul></ul><ul><ul><ul><li>Alerts, Announcements, Documentation </li></ul></ul></ul><ul><ul><ul><li>Online Training (TOIs) </li></ul></ul></ul><ul><ul><ul><li>RCDs </li></ul></ul></ul><ul><ul><ul><li>Upgrading to Release 12? </li></ul></ul></ul><ul><li>Advisor Webcast Program </li></ul><ul><ul><li>Metalink: Knowledge tab -> Support Tools -> Advisor Webcasts </li></ul></ul><ul><ul><li>Note:398877.1 </li></ul></ul><ul><ul><li>Live recorded webcasts describing the business benefits of the new capabilities in Release 12 </li></ul></ul><ul><ul><ul><li>16 available for Financials </li></ul></ul></ul>E-Business Suite Financials Release 12 Advisor Webcasts: What's New in Oracle E-Business Suite Financials Release 12? What's New in Oracle E-Business General Ledger Release 12? Introducing Oracle E-Business Subledger Accounting in Release 12 What's New in Oracle E-Business Receivables Release 12? What's New in Oracle E-Business Credit Mgmt and Advanced Collections Release 12? What's New in Oracle E-Business Cash Management Release 12? Introducing Oracle E-Business Advanced Global Intercompany System in Release 12? Introducing Oracle E-Business Tax in Release 12? Introducing Oracle E-Business Payments in Release 12 What's New in Oracle E-Business Internet Expenses Release 12? What's New in Oracle E-Business Public Sector Financials Release 12? Oracle E-Business Subledger Accounting Release 12 Deep Dive Oracle E-Business Tax Release 12 Deep Dive Oracle E-Business Payments Release 12 Deep Dive What does Upgrading to Oracle EBS Financials look like from a Technical Perspective?
  24. 24. Thank You