Differences between R12 & 11i.5.10 New R12 Features Upgrade Assessment Dharma lingam Kandampalayam Shanmugam OCP, PMP

Upgrade to R12 – Pros and Cons Pros: Sub-ledger Accounting – The new Oracle Sub-ledger Accounting (SLA) architecture allows users to customize the standard Oracle accounting entries. As a result of Cost Management's uptake of this new architecture, users can customize their accounting for Receiving, Inventory and Manufacturing transactions. Enhanced Reporting Currency (MRC) Functionality – Multiple Reporting Currencies functionality is enhanced to support all journal sources. Reporting sets of books in R12 are now simply reporting currencies. Every journal that is posted in the primary currency of a ledger can be automatically converted into one or more reporting currencies. Deferred COGS and Revenue Matching – R12 provides the ability to automatically maintain the same recognition rules for COGS and revenue for each sales order line for each period. Deferred COGS and Deferred Revenue are thus kept in synch. Cons: Resources – Availability of knowledgeable resources Maturity – Though R12 is around since 2007, not all the modules are mature enough meaning modules like E-B Tax have many bugs being fixed by Oracle development. Integration with customized applications – In a customized environment, all the extensions & interfaces need to be analyzed because of the architectural changes in R12.

Sub-ledger Accounting – The new Oracle Sub-ledger Accounting (SLA) architecture allows users to customize the standard Oracle accounting entries. As a result of Cost Management's uptake of this new architecture, users can customize their accounting for Receiving, Inventory and Manufacturing transactions.

Enhanced Reporting Currency (MRC) Functionality – Multiple Reporting Currencies functionality is enhanced to support all journal sources. Reporting sets of books in R12 are now simply reporting currencies. Every journal that is posted in the primary currency of a ledger can be automatically converted into one or more reporting currencies.

Deferred COGS and Revenue Matching – R12 provides the ability to automatically maintain the same recognition rules for COGS and revenue for each sales order line for each period. Deferred COGS and Deferred Revenue are thus kept in synch.

Resources – Availability of knowledgeable resources

Maturity – Though R12 is around since 2007, not all the modules are mature enough meaning modules like E-B Tax have many bugs being fixed by Oracle development.

Integration with customized applications – In a customized environment, all the extensions & interfaces need to be analyzed because of the architectural changes in R12.

R12 Features and differences with 11.5.10 – Inventory / Cost Management Multi-Organization Access Control (MOAC) - Multi-Org Access Control enables uses to access multiple operating units data from single responsibility. Users can access reports , Concurrent programs , all setup screens of multiple operating units from single responsibility without switching responsibilities. Unified Inventory - R12 merges Oracle Process Manufacturing OPM Inventory and Oracle Inventory applications into a single version . So OPM users can leverage the functionalities such as consigned & VMI and center led procurement which were available only to discrete inventory in 11i.5.10. Inventory valuation Reports -There are a significant number of reports which have been enhanced in the area of Inventory Value Reporting Inventory Genealogy - Enhanced genealogy tracking with simplified, complete access at the component level to critical lot and serial information for material throughout production. Fixed Component Usage Materials Enhancement – Enhanced BOM setup screen and WIP Material Requirement screen that support materials having a fixed usage irrespective of the job size for WIP Jobs, OSFM lot-based jobs, or Flow Manufacturing Component Yield Enhancements - New functionality that provides flexibility to control the value of component yield factors at WIP job level. This feature allows the user to include or exclude yield factor while calculating back flush transactions. Periodic Average Cost Absorption Enhancements – Enhanced functionality for WIP Final Completion, WIP Scrap Absorption, PAC WIP Value Report, Material Overhead Absorption Rule, EAM work order, and PAC EAM Work Order Cost Estimate Processor Report. Component Yield benefits - Component yield functionality user have the flexibility to control the value of component yield factors and use those factors for back flush transactions. Of course if the yield factor is not used, yield losses can be accounted for using the manual component issue transaction. New Features:

Multi-Organization Access Control (MOAC) - Multi-Org Access Control enables uses to access multiple operating units data from single responsibility. Users can access reports , Concurrent programs , all setup screens of multiple operating units from single responsibility without switching responsibilities.

Unified Inventory - R12 merges Oracle Process Manufacturing OPM Inventory and Oracle Inventory applications into a single version . So OPM users can leverage the functionalities such as consigned & VMI and center led procurement which were available only to discrete inventory in 11i.5.10.

Inventory valuation Reports -There are a significant number of reports which have been enhanced in the area of Inventory Value Reporting

Inventory Genealogy - Enhanced genealogy tracking with simplified, complete access at the component level to critical lot and serial information for material throughout production.

Fixed Component Usage Materials Enhancement – Enhanced BOM setup screen and WIP Material Requirement screen that support materials having a fixed usage irrespective of the job size for WIP Jobs, OSFM lot-based jobs, or Flow Manufacturing

Component Yield Enhancements - New functionality that provides flexibility to control the value of component yield factors at WIP job level. This feature allows the user to include or exclude yield factor while calculating back flush transactions.

Periodic Average Cost Absorption Enhancements – Enhanced functionality for WIP Final Completion, WIP Scrap Absorption, PAC WIP Value Report, Material Overhead Absorption Rule, EAM work order, and PAC EAM Work Order Cost Estimate Processor Report.

Component Yield benefits - Component yield functionality user have the flexibility to control the value of component yield factors and use those factors for back flush transactions. Of course if the yield factor is not used, yield losses can be accounted for using the manual component issue transaction.

R12 Features and differences with 11.5.10 – Advanced Procurement Suite Professional Buyer’s Work Center – To speed up buyers’ daily purchasing tasks – view & act upon requisition demand, create & manage orders and agreements, run negotiation events, manage supplier information. Freight and Miscellaneous Charges – New page for viewing acquisition cost to track freight & miscellaneous delivery cost components while receiving. Actual delivery costs are tracked during invoice matching. Complex Contract Payments – Support for payments for services related procurement including progress payments, recoupment of advances, and retainage. Unified Inventory – Support for the converged inventory between Oracle Process Manufacturing – OPM Inventory & Oracle Inventory. Document Publishing Enhancements – Support for RTF & PDF layouts and publish contracts using user specified layouts Support for Contractor Purchasing Users – Support for contingent workers to create & maintain requisitions, conduct negotiations, and purchase orders. New Features:

Professional Buyer’s Work Center – To speed up buyers’ daily purchasing tasks – view & act upon requisition demand, create & manage orders and agreements, run negotiation events, manage supplier information.

Freight and Miscellaneous Charges – New page for viewing acquisition cost to track freight & miscellaneous delivery cost components while receiving. Actual delivery costs are tracked during invoice matching.

Complex Contract Payments – Support for payments for services related procurement including progress payments, recoupment of advances, and retainage.

Unified Inventory – Support for the converged inventory between Oracle Process Manufacturing – OPM Inventory & Oracle Inventory.

Document Publishing Enhancements – Support for RTF & PDF layouts and publish contracts using user specified layouts

Support for Contractor Purchasing Users – Support for contingent workers to create & maintain requisitions, conduct negotiations, and purchase orders.

R12 Features and differences with 11.5.10 – Order Management Multi-Organization Access Control (MOAC) - Multi-Org Access Control enables uses to access multiple operating units data from single responsibility. Users can access reports , Concurrent programs , all setup screens of multiple operating units from single responsibility without switching responsibilities. They can also use Order Import to bring in orders for different Operating Units from within a single responsibility. The same applies to the Oracle Order Management Public Application Program Interfaces (APIs). Post Booking Item Substitution - Item Substitution functionality support has been extended to post-Booking through Scheduling/re-scheduling in Sales Order, Quick Sales Order, and Scheduling Order Organizer forms. Item Substitution functionality is also supported from Planner’s Workbench (loop-back functionality) till the line is pick-released. Item Orderability - Businesses need the ability to define which customers are allowed to order which products, and the ability to apply the business logic when the order is created. Mass Scheduling Enhancements – Mass Scheduling can now schedule lines that never been scheduled or those that have failed manual scheduling. Mass Scheduling also supports unscheduling and rescheduling Exception Management Enhancements – Improved visibility to workflow errors and eases the process of retrying workflows that have experienced processing errors Sales Order Reservation for Lot-Based Jobs – Lot-Based Jobs as a Source of Supply to Reserve Against Sales Order(s). OSFM Displays Sales Order Information on Reserved Jobs Cascading Attributes – Cascading means that if the Order header attributes change, the corresponding line attributes change Customer Credit Check Hold Source Support across Operating Units - Order Management honors credit holds placed on customers from AR across operating Units. When Receivables places a customer on credit hold a hold source will be created in all operating units which have: A site defined for that customer An order placed against that customer. New Features:

Multi-Organization Access Control (MOAC) - Multi-Org Access Control enables uses to access multiple operating units data from single responsibility. Users can access reports , Concurrent programs , all setup screens of multiple operating units from single responsibility without switching responsibilities. They can also use Order Import to bring in orders for different Operating Units from within a single responsibility. The same applies to the Oracle Order Management Public Application Program Interfaces (APIs).

Post Booking Item Substitution - Item Substitution functionality support has been extended to post-Booking through Scheduling/re-scheduling in Sales Order, Quick Sales Order, and Scheduling Order Organizer forms. Item Substitution functionality is also supported from Planner’s Workbench (loop-back functionality) till the line is pick-released.

Item Orderability - Businesses need the ability to define which customers are allowed to order which products, and the ability to apply the business logic when the order is created.

Mass Scheduling Enhancements – Mass Scheduling can now schedule lines that never been scheduled or those that have failed manual scheduling. Mass Scheduling also supports unscheduling and rescheduling

Exception Management Enhancements – Improved visibility to workflow errors and eases the process of retrying workflows that have experienced processing errors

Sales Order Reservation for Lot-Based Jobs – Lot-Based Jobs as a Source of Supply to Reserve Against Sales Order(s). OSFM Displays Sales Order Information on Reserved Jobs

Cascading Attributes – Cascading means that if the Order header attributes change, the corresponding line attributes change

Customer Credit Check Hold Source Support across Operating Units - Order Management honors credit holds placed on customers from AR across operating Units. When Receivables places a customer on credit hold a hold source will be created in all operating units which have:

A site defined for that customer

An order placed against that customer.

R12 Features and differences with 11.5.10 – Shipping Pick Release/Confirm Features Pick Release enhancements - Enhancements will be made to the Release Sales Order Form and the Release Rules Form to support planned crossdocking and task priority for Oracle Warehouse Management (WMS) organizations. Pick release will allow a user to specify location methods and if crossdocking is required, a cross-dock rule. The task priority will be able to be set for each task in a sales order picking wave when that wave is pick released. The priority indicated at pick release will be defaulted to every Oracle WMS task created Parallel Pick Release Submission - This new feature will allow users to run multiple pick release processes in parallel to improve overall performance. By distributing the workload across multiple processors, users can reduce the overall time required for a single pick release run. Workflow Shipping Transaction Enhancement – Oracle has enabled Workflow in the Shipping process for: workflow, process workflow, activity and notification workflow, and business event Support for Miscellaneous Shipping Transactions - Oracle Shipping Execution users will now be able to create a delivery for a shipment that is not tied to a sales order via XML (XML-equivalent of EDI 940 IN). Once this delivery has been created, users will be able to print shipping documents, plan, rate, tender, audit and record the issuance out of inventory. Additionally, an XML Shipment Advice (XML- equivalent of EDI 945 OUT) will be supported to record the outbound transactions. Flexible Documents: With this new feature ,Shipping Execution users will be able to create template-based, easy-to-use formats to quickly produce and easily maintain shipping documents unique to their business. Additional attributes will be added to the XML templates for each report for added flexibility Enhanced LPN Support - Oracle Shipping Execution users will now have improved visibility to the Oracle WMS packing hierarchy at Pick Confirmation. The packing hierarchy, including the License Plate Number (LPN), will be visible in the Shipping Transactions form as well as in the Quick Ship user interface. New Features:

Pick Release/Confirm Features

Pick Release enhancements - Enhancements will be made to the Release Sales Order Form and the Release Rules Form to support planned crossdocking and task priority for Oracle Warehouse Management (WMS) organizations. Pick release will allow a user to specify location methods and if crossdocking is required, a cross-dock rule. The task priority will be able to be set for each task in a sales order picking wave when that wave is pick released. The priority indicated at pick release will be defaulted to every Oracle WMS task created

Parallel Pick Release Submission - This new feature will allow users to run multiple pick release processes in parallel to improve overall performance. By distributing the workload across multiple processors, users can reduce the overall time required for a single pick release run.

Workflow Shipping Transaction Enhancement – Oracle has enabled Workflow in the Shipping process for: workflow, process workflow, activity and notification workflow, and business event

Support for Miscellaneous Shipping Transactions - Oracle Shipping Execution users will now be able to create a delivery for a shipment that is not tied to a sales order via XML (XML-equivalent of EDI 940 IN). Once this delivery has been created, users will be able to print shipping documents, plan, rate, tender, audit and record the issuance out of inventory. Additionally, an XML Shipment Advice (XML- equivalent of EDI 945 OUT) will be supported to record the outbound transactions.

Flexible Documents: With this new feature ,Shipping Execution users will be able to create template-based, easy-to-use formats to quickly produce and easily maintain shipping documents unique to their business. Additional attributes will be added to the XML templates for each report for added flexibility

Enhanced LPN Support - Oracle Shipping Execution users will now have improved visibility to the Oracle WMS packing hierarchy at Pick Confirmation. The packing hierarchy, including the License Plate Number (LPN), will be visible in the Shipping Transactions form as well as in the Quick Ship user interface.

R12 Features and differences with 11.5.10 – Warehouse Management Crossdock Execution – WMS allow you to determine final staging lane, merge with existing delivery or create a new delivery, synchronize inbound operation plan with outbound consolidation plan, enhance outbound consolidation plans and manage crossdock tasks. Labor Management – WMS provides labor analysis. It gives the warehouse manager increased visibility to resource requirements. Detailed information for the productivity of individual employees and warehouses is provided Warehouse Control Board Additions - Additional Task selection criteria User Extensible Label Fields – WMS, users are now able to add their own variables without customizing the application, by simply defining in SQL the way to get to that data element Material Consolidation across deliveries – WMS allows you to consolidate material across deliveries in a staging lane New Features:

Crossdock Execution – WMS allow you to determine final staging lane, merge with existing delivery or create a new delivery, synchronize inbound operation plan with outbound consolidation plan, enhance outbound consolidation plans and manage crossdock tasks.

Labor Management – WMS provides labor analysis. It gives the warehouse manager increased visibility to resource requirements. Detailed information for the productivity of individual employees and warehouses is provided

Warehouse Control Board Additions - Additional Task selection criteria

User Extensible Label Fields – WMS, users are now able to add their own variables without customizing the application, by simply defining in SQL the way to get to that data element

Material Consolidation across deliveries – WMS allows you to consolidate material across deliveries in a staging lane

R12 Features and differences with 11.5.10 – OSFM Lot and Serial Controlled Assembly– Lot controlled job can now be associated with serial numbers to track and trace serialized lot/item during shop floor transactions as well as post manufacturing and beyond Fixed Component Usage Support for Lot Based Jobs – OSFM now supports fixed component usage defined in the Bill of Material of an end it. Support for Partial Move Transactions – Users are able to execute movement of a partial job quantity interoperation Enhanced BOM to Capture Inverse Usage – Users can now capture the inverse component usage through the new inverse usage field in BOM UI Support for Rosetta Net Transaction - comprising of 7B1 (work in process) and 7B5 (manufacturing work order). New Features:

Lot and Serial Controlled Assembly– Lot controlled job can now be associated with serial numbers to track and trace serialized lot/item during shop floor transactions as well as post manufacturing and beyond

Fixed Component Usage Support for Lot Based Jobs – OSFM now supports fixed component usage defined in the Bill of Material of an end it.

Support for Partial Move Transactions – Users are able to execute movement of a partial job quantity interoperation

Enhanced BOM to Capture Inverse Usage – Users can now capture the inverse component usage through the new inverse usage field in BOM UI

Support for Rosetta Net Transaction - comprising of 7B1 (work in process) and 7B5 (manufacturing work order).

R12 – Further Info… The latest RCD (Release Content Documents) can be accessed from the metalink note 404152.1 (requires user name & password). The TOI (Transfer Of Information) sessions released by Oracle Learning can be accessed from its portal at http:// www.oracle.com/education/oukc/ebs.html Oracle White papers – Extending the value of Your Oracle E-Business Suite 11i.10 Investment & Application Upgrades and Service Oriented Architecture R12 Further Info – RCD & TOI

The latest RCD (Release Content Documents) can be accessed from the metalink note 404152.1 (requires user name & password).

The TOI (Transfer Of Information) sessions released by Oracle Learning can be accessed from its portal at http:// www.oracle.com/education/oukc/ebs.html

Oracle White papers – Extending the value of Your Oracle E-Business Suite 11i.10 Investment & Application Upgrades and Service Oriented Architecture