E-Business Suite Release 12 Payables Upgrade: Like for Like and Then Some


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Faced with extended support fees and required patches, Oracle E-Business Suite Release 11i users are seeking a quick Release 12 upgrade. Many companies are choosing a “like for like” approach wherein uptake of new functionality is postponed until after the upgrade. However, R12 introduces new functionality for payments, taxes, invoice entry, and supplier management that must be incorporated. eprentise and guest speaker Karen Brownfield from Infosemantics, Inc. address the required new functionality with hints on configuration thus meeting the upgrade objectives.

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E-Business Suite Release 12 Payables Upgrade: Like for Like and Then Some

  1. 1. Karen BrownfieldKaren.Brownfield@Infosemantics.com
  2. 2. Webinar Mechanics Open and close your panel. View, select, and test your audio. Submit text questions. Raise your hand. Q&A addressed at the end of the session.Answers will be posted within two weeks on ournew LinkedIn Group, EBS Answers:http://www.linkedin.com/groups/EBS-Answers-4683349/about Everyone will receive an email within 24 hourswith a link to view a recorded version of today‟ssession. Polling questions will be presented during thesession. If you want CPE credit for thiswebinar, you must answer all of the pollingquestions.
  3. 3. Learning ObjectivesObjective 1: Define a “like for like” upgrade.Objective 2: Identify the key requirements for payables thatshould be taken into account when upgrading to R12.Objective 3: Explain the impact of a “like for like” functionalupgrade approach onsuppliers, invoices, payments, banks, SLA, tax and MOAC.
  4. 4. eprentise Can… …So Our Customers Can:• Consolidate Multiple EBS Instances• Change Underlying Structures andConfigurations• Chart of Accounts, OtherFlexfields• Inventory Organizations• Operating Groups, LegalEntities, Ledgers• Calendars• Costing Methods• Resolve Duplicates, ChangeSequences, IDs• Separate Data: Transformation Software for E-Business Suite• Reduce Operating Costs and IncreaseEfficiencies• Shared Services• Data Centers• Adapt to Change• Align with New Business Initiatives• Mergers, Acquisitions, Divestitures• Pattern-Based Strategies• Make ERP an AdaptiveTechnology• Avoid a Reimplementation• Reduce Complexity and Control Risk• Improve Business Continuity, ServiceQuality and Compliance• Establish Data Quality Standards and aSingle Source of TruthCompany Overview: Established 2006 l Helene Abrams, CEO
  5. 5. About the Speaker Oracle Ace Oracle Certified Specialist (EBS and Fusion) Over 35 years System Design and Support Over 20 years E-Business Suitesupport, upgrade, implementation Former OAUG President Over 100 presentations at multiple venues
  6. 6. Agenda Definition of “Like for Like” Impact on Suppliers Invoices Payments Banks Subledger Accounting (SLA), Month End Tax Multi-org Access Control
  8. 8. Like for Like Functional Upgrade Upgrade application from current release to the mostcurrent stable release (12.1.3) Minimize customization while continuing to supportunique business requirements Retire any where standard functionality suffices Thorough testing of all utilized functionality Keep current functionality and change only whatR12 requires to be changed
  9. 9. Change Only What R12 RequiresTo Be Changed For Payables, that Includes Suppliers – New Form Invoices – Form Modified Payments – New Module, New Form Banks – New Forms, Banks now owned by LE Subledger Accounting (SLA), Month-end Taxes – New Module EBTax Multi-org Access Control (MOAC)
  10. 10. SUPPLIERS
  11. 11. Suppliers – New StructureSupplierContains:AddressOp UnitDefaultsSiteSupplierAddressOp UnitSite11i R12If Need to UseAddress forMultiple OpUnits, or need2 sites withdifferentdefaults, mustrekeyKey OnceGrant right touse to Op Unit(creates 1st site)Add 2nd site ifop unit needsmultiple setsof defaults
  12. 12. Suppliers – New Form R12 Opens to Search screen to minimize duplicates
  13. 13. Query Lands HereSame AddressMultiple Op UnitsSame AddressSame Op UnitMultiple SitesDif DefaultsSame AddressMultiple Op UnitsSupplier DetailsGrouped by PageSpecify Ledger to seesites for that ledger
  14. 14. Add Lands ….Here for Header(and afterclicking Apply…)Here to CreateSites (but note..There are noaddresses)
  15. 15. Suggested Add Process Search by Name, Search by TIN and/or Tax # Enter Header After Header created, DFF moves to Organizationpage DFFs are “Additional Information” in OAF pages Enter Address (Address Book Tab) Click/Verify Purpose(s) Subscribe Op Unit(s) Add Additional Sites for Same Address/Op Unit
  16. 16. Suggested Add Process Enter Tax IDs on Initial Header page or Tax Detailspage (and whether subject to 1099 tax) Tax IDs also on Organization page Remaining 1099 info and Transaction Tax info enteredon Tax and Reporting page Enter Suppliers bank account details for EFT onBanking Details page Enter appropriate site defaults onAccounting, Purchasing, Receiving, PaymentDetails, and Invoice Management pages
  17. 17. Suggested Add Process Contact Directory is for contacts across alladdresses – only place for names – iSupplier usersfor Supplier listed here Address Level – one phone, fax and/or email Address tab, click pencil Site Level – multiple phone, fax and/or emails Address tab, click Manage Sites, Communication tab Business Classification page stores EEOC info
  18. 18. Upgrade Considerations Sites Upgrade to Addresses and Sites Site name becomes Address name If multiple sites reference same address (whether dueto multiple operating units or due to multiple sites forsame address in same operating unit), the addressname becomes the first name alphabetically Example Site Names: PHILADELPHIA, OU1-PHILLY Resulting Address Name: OU1-PHILLY Two sites: PHILADELPHIA, OU1-PHILLY
  19. 19. Upgrade Considerations No “About this record” information Oracle considers this an enhancement request (ER8518090) MOS Note 1484326.1 – R12: Unable To View RecordHistory In Supplier HTML Pages Patch 15325021 plus personalization detailed in note No seeded Inquiry form See MOS Notes 473346.1 (function toexclude), 1089925.1 (patches to fix exclusionbugs), 579496.1 (How To links) Script to validate whether responsibility has update or inquireaccess – MOS Note 1385028.1 (patch, functions toinclude/exclude, script) MOS Note 1545911.1 - R12: Suppliers andiSuppliers: Quick Reference and TroubleshootingGuide
  20. 20. Upgrade Considerations TINs are not upgraded for Suppliers with anOrganization Type Code of Individual, Partnership orForeign Partnership MOS Note 1271092.1 – R12: Generic Data Fix (GDF)Patch 10635325 – GDF for Missing SupplierCOLUMNSINDIVIDUAL_1099/TAX_PAYER_ID, JOB_TITLE, SERVICE_TOLERANCE_ID during 11i to R12 Upgrade The script ap_inc_SuppUpg_fields_sel.sql selectsIndividuals, but not Partnerships. Add„PARTNERSHIP‟ to the values in the line „ANDs.organization_type_lookup_code IN‟
  21. 21. Upgrade Considerations By Default, Employee Suppliers (Suppliers withVendor Type = Employee) not available inView/Enter Supplier screen Entry / Updates done via HR screens Employee Supplier created with expense reportcreated Changes made in HR synced to Supplier via EmployeeUpdate Program Inquiry and/or Update can be restored See MOS Notes 1377888.1 – White Paper: Understandingand Working with Employee Suppliers in R12 and1298696,1 – R12: Employee Type Suppliers FrequentlyAsked Questions
  22. 22. New Features 3rd Party Payments Set relationship on Relationship page Check written to party specified with method of that party 1099 reporting stays with Invoice Supplier Click Primary flag to get relationship to default to invoice AP/AR Netting MOAC Access Consider using this form to test MOAC access as ithelps to have those who enter suppliers see alladdresses across entire instance
  24. 24. INVOICES
  25. 25. Invoices – Form Modified New Fields Reworked Areas New Tab – Lines New Buttons
  26. 26. Invoices – Form Modified New Lines Tab Distributions for SpecificLine All Distributions
  27. 27. Invoices – Form Modified Allocations 11i – Multiple lines R12 – One line, multipledistributions
  28. 28. New Form Impacts Tax Allocations Matching – POs, DR/CR memos, Prepayments CANNOT change Project Number – MOS Note1320711.1 Can change other PA fields PA: Allow Override of PA Distributions in AP/PO Payables Options, Allow Matching Account Override
  29. 29. New Form Impacts Changes If line involved in any type of match or allocation, mustDiscard line to change Impact Increases at Validated, Accounting MOS Note 1300685.1 Layout Strongly suggest use of folders Operating Unit MUST remain as first field on header
  30. 30. New Optional Features Tax Control Amount (Invoice Header) Forces tax calculation to match tax on invoice, i.e.penny round-off errors Ability to add most asset fields during invoice entry(Invoice Line) Expense Amortization (Invoice Line) MOS Note 1315106.1 – R12: SubledgerAccounting: White Paper on Multi PeriodAccounting
  31. 31. Upgrade Considerations PATCH CURRENT!! MOS Note 954704.1 – EBS: R12.1 Oracle FinancialsRecommended Patches Through start of each CRP, review again for updates (freezebefore final UAT) MOS Note 1397581.1 – R12.1: PayablesRecommended Patch Collection (AP RPC), March2013 Includes recommendations for related non-Financialproducts Includes code (not a patch) for enabling AP EnhancedDebugging for Cancel/Discard issues
  32. 32. Upgrade Considerations Pre-Upgrade Patches to AVOID GDFs MOS Note 1127593.1 – R12.1: Oracle Financials Pre-Upgrade Patch – Supplemental List for EBS CUP Install Master GDF Diagnostic MOS Note 874903.1 – What is a Generic DatafixPatch (GDF) and what GDFs are available forPayables? Links to notes, video, analyzers, FAQs Verify running current version (MOS Note 1360390.1) MOS Note 1361255.1 – Register script as concurrentprogram Implement Patch Wizard MOS Note 976188.1
  33. 33. Upgrade Considerations Looks like the least changes, but this form causesthe most issues TEST TEST TEST TEST TEST TEST Issues are with changing validated and/or accountedinvoices, esp those invoices with tax Discard, Cancel, re-calculate Tax Test changes to invoices entered in 11i as well asthose entered in R12
  34. 34. PAYMENTS
  35. 35. Payments – New FormCounts shown arefrom all OUsTotals resetdaily
  36. 36. Payment Process Request (PPR)Specify Bank andPayment DocSpecify processstop pointsSpecify FailureOptions
  37. 37. Hint: Use PPPs and Templates PPP – Payment Process Profile Type Payment – Printed, Electronic, Pay Card Documents – which and what format “Check”, Positive Pay, Remittance Advice, Register Template Pay from/thru, Pay Group(s), Op Unit(s), LE(s), Priority Where to stop in process, error handling Either Payment Document, Method, Currency
  38. 38. PPP for Electronic
  39. 39. PPP for PrintedClick This IfSpecifying Printer
  40. 40. TemplateRestrict bySupplier TypePayment MethodPay GroupLegal EntityCurrencyOp Unit
  41. 41. Upgrade Considerations All Payment Process Requests (PPRs) produce afile, thus EVERYTHING except recording manualpayments requires a BI Publisher template Check, Electronic, etc Can specify multiple templates, i.e. layouts, but cannotcustomize data extract Payment Documents Assigned to non-standardformats (like Evergreen) will be deleted duringupgrade and must be recreated Note Last Used for each document
  42. 42. Upgrade Considerations Only Printed Documents have Check Number (nowcalled Paper Document Number) Defined by Payment Document All Payments have Payment Reference Number MOS Note 855097.1 describes patch to addDocument Number to Electronic
  43. 43. Upgrade Considerations Review current payment documents Determine number of different formats currently used New Name: Payment Instruction Format Each one will require at least one PPP Determine current payment batch parameters Each set can become a template Goal: Users specify template, PPRname, review/adjust first page, submit MOS Note 7333537.1 – R12 Upgrade: FunctionalUpgrade Impacts Document for Oracle Payments
  44. 44. Setup Order From Payment Administrator screen Register New XML Publisher Format Templates Define New Payment Formats Create Payment Process Profiles Adjust any other settings in the Payment Administratorpage and mark all steps complete From Bank Accounts screen (see next section) Clean up Bank Account Settings, Assign the Formatsto the Payment Documents Create Templates
  45. 45. Manual Payments Old 11i form for manual payments still exists MOS Note 1320497.1 – R12: Master TroubleshootingGuide for the AP Payments Workbench New functionality – Record Refunds BUG!! – If using document for wire (or any non-check method) and you wish to override auto-generated number and vendor or vendor sitepayment method is set to check and you navigate toform from invoice (Actions | Pay in Full), formoverwrites entered number when you save If go to form from Navigator and then select invoice, itworks
  47. 47. BANKS
  48. 48. Banks Belong to Legal Entities New tables CE_ Old tables still exist, but are empty Internal Banks only Account Number Can Be Masked Profile Option: CE: Mask Internal Bank AccountNumbers Security to View/Update controlled through UserManagement Security – MOS Note 1457691.1 MOS Note 1301702.1 – R12: Oracle Payments BankAccount Setups „How To‟ documents Links to appropriate MOS notes for various setups
  49. 49. Drilldown – Banks• Country, Bank, Branch, Account• Acct Owner and Use• Account Information
  50. 50. Drilldown – Banks• Account Controls• Set Minimum Paymentto avoid negativechecks• Account Access• Override Accounting
  51. 51. Direct – Bank Accounts• Payment DocumentAccess
  52. 52. Upgrade Considerations Your banks and accounts are upgraded Definitions for bank merged if name matches Default masking is “Masking – last 4 visable” CE: Mask Internal Bank Account Numbers Payment Documents referencing custom formats aredeleted Evergreen is a custom format Note last numbers for all payment documents as partof pre-upgrade Clean up old accounts, payment documents Verify Addresses, length of account numbers (esp ifwill be printing account number on checks or using forelectronic formatting)
  54. 54. Subledger Accounting (SLA) New Module that provides single repository foraccounted subledger transactions Allows modification of JE Header/Line descriptionand/or attributes Allows accounting assigned at subledger level to bealtered as transaction is accounted and passed toGL RECOMMENDATION: Use seeded definitions
  55. 55. 11i – View Accounting Lines
  56. 56. SLA Inquiry – By JE LineAnd / OrCan addadditionalcriteriaCan only specifysegments that aretagged as qualifiers
  57. 57. SLA Inquiry – By Event Class / Type
  58. 58. Account Analysis Report• Replaces PayablesAccount AnalysisReport• Internal NameXLAAARPT (oldinternal nameAPXAAREP)• Supports Accountingcombination ranges
  59. 59. New Accounting ProcessAll ModesAll Modes except DraftPost adds“Posting Single Ledger”Transfer to GL
  60. 60. New Accounting Process
  61. 61. Upgrade Considerations Amount of History Moved to SLA tables Default – 6 months or current fiscal year, whichever isgreater, however ALL of AP is migrated Bringing over more requires patching 11i and running ascript (only method if using PA) As long as patch is applied, can bring over default and restlater after upgrade MOS Note 604893.1 – R12.0 and R12.1: FAQ for the SLAUpgrade: SLA Pre-Upgrade, Post-Upgrade, and Hot Patch” If not using PA, new program does not require 11ipatch, and upgrades by module instead of by month MOS Note 1376752.1 – SLA: Upgrade Historical SubledgerTransaction Accounting Program (XLAONDEUPG) For information on how to use SLA, OAUG paperdatabase, papers by Alyssa Johnson
  62. 62. Closing* Highlights a changed process in R12 Complete transactions, including imports Invoices On Hold Report Approve invoices Complete payments Reconcile payments / bank statements Resolve potential accounting issues * Create Accounting * Journal Entries Report Unaccounted Transactions Report From “Oracle Financials E-Business Suite Release 12 Period End Procedures” – MOS Note 961285.1
  63. 63. Closing* Highlights a changed process in R12 Run Transfer to General Ledger Run once before closing regardless of Create Accountingparameter Post Payables transactions in General Ledger * Not required if Create Accounting Post option = Yesunless above Transfer created a JE Review Accounting * Payables Accounting Process Report Payables Posted Invoices Register Payables Posted Payments Register Subledger Period Close Exceptions Report * From “Oracle Financials E-Business Suite Release 12 Period End Procedures” – MOS Note 961285.1
  64. 64. Closing* Highlights a changed process in R12 Unaccounted Transactions Sweep * Close Payables period Accrue un-invoiced receipts Reconcile Payables activity to GL Accounts Payable Trial Balance * Third Party Balances Report * Account Analysis Report * Tax reporting Mass addition transfer to Assets From “Oracle Financials E-Business Suite Release 12 Period End Procedures” – MOS Note 961285.1
  66. 66. TAX
  67. 67. Tax Code Upgrade from 11i to 12 11i Tax codes become R12 Tax Classification Codes Tax classification codes are entered on the transactionlines and the tax rate associated with the taxclassification code is then applied to the transaction
  68. 68. What does this look like in EBTax A tax regime is created for each operating unit definedin 11i. Tax regimes are named as “2 digit countrycode (from the Operating Unit Address) –TAX”, (ex: US-TAX) and hold the tax setup that hasbeen upgraded Regimes created for use with integration partnerssuch as Taxware and Vertex have a slightly differentnaming convention and are typically upgraded as "US-Sales-Tax-101“
  69. 69. What does this look like in EBTax A Tax is created for each tax code A Tax Status is created for each tax code A Tax Rate is created for each tax code A Tax "Rule" is then created as a "Direct raterule". This simple rule hard-codes the relationshipbetween the tax classification code and the tax, taxstatus and tax rate. When a transaction is enteredand the user picks the tax classification code, thedirect rate rule automatically retrieves and associateseach of these items to the transaction and does thetax calculation
  70. 70. What is the STCC? After the upgrade, the system will set "ConfigurationOwner Tax Options" for each product and event class(e.g. Invoices, Credit Memo, etc). This will be set as"Standard Tax Classification Code" or STCC followingan upgrade Combined with the Direct Rate Rule that are createdduring the 11i upgrade result in a unique branch ofcode to be called when calculating taxes
  71. 71. Restrictions on Migrated Setups If the configuration owner tax options are set to“STCC”, users CANNOT Create new tax rules Modify or add to existing tax rules Modify existing tax formulas Newly implement partner integrations such as Vertex orTaxware Set up new tax groups Patch 9723745 allows users to add new tax rates to anexisting tax rate (not create new rules). For example if ajurisdiction rate has changed from 5% to 6%, the old ratecould be end dated and create the new rate
  72. 72. Pro/Cons for Upgrading or FreshImplementation of Regimes Upgraded Regime Faster Exemptions are regime specific so a new regimemeans all new exemptions must be defined Few changes for the end user Fresh Implementation More flexibility to add/remove tax codes 11i PL*SQL rules do not migrate Able to automate many of the tax decisions throughthe creation of tax rules
  73. 73. Tax – More Information MOS Note 1062897.1 – Case Study: How to SwitchFrom an Upgraded Tax Regime to a New Tax Regime- Canada HST example MOS Note 464243.1 – E-Business Tax For OraclePurchasing
  74. 74. Tax Partners – More Information MOS Note 1335680.1 – Oracle E-Business Tax NowValidated With Four Tax Partners Contains Advisor webcast explaining partnerintegration Imbedded document “Oracle E-Business Tax: VertexQ-Series and Taxware Sales/use Tax SystemImplementation Guide‟ MOS Note 465260.1 – What versions ofVertex, ADP/Taxware and Thomson Reuters/Sabrixare validated with E-Business Tax (EBTax)
  76. 76. Multi-Org Access Control (MOAC) See/Enter Data across multiple organizations withoutswitching responsibilities Run reports showing data from multiple OUs See “Implementing Multiple Organizations in Release 12” by Alyssa JohnsonRelease 11i Release 12
  77. 77. Upgrade Considerations MOAC is optional Most useful for managing suppliers Oracle seeds single org security profiles If add security profiles, don‟t forget to run “SecurityList Maintenance” Custom Programs – new calls to set Org context MOS Note 436353.1 – How to Setup APPS Context InScope Of SQL/PL/SQL Session To Run API Or CodeFor CRM Modules MO: Operating Unit must be set at site level New Profile options MO: Security Profile MO: Default Operating Unit
  78. 78. Upgrade Considerations Even if stick with one org per responsibility, ensurereports properly defined <System Administrator> System Administration |Concurrent | Program; Request Tab Operating Unit Mode must be Single / Multiple Check MULTI_ORG_CATEGORY field inFND_CONCURRENT_PROGRAMS for null valuesSingle Op Unit Multiple Op Unit
  79. 79. SUMMARY
  80. 80. Where to Focus MOAC – It‟s an access issue, choice won‟tsignificantly impact setup or testing Tax – Upgraded Regime New Regime will add time for setup / testing Install patches referenced in MOS Note 1448102.1 toavoid corruption Banks – impacts setup time due to unfamiliar form Subledger Accounting – accept seeded SLAM Create Accounting in Final Post mode
  81. 81. Where to Focus Closing Consider Setting up Report Set to ensure parametersspecified correctly Payments Focus on Setups to gain ease of use Payment Templates Suppliers Most Confusing Form Develop procedure for Adding Supplier Use Personalization to Order Fields on pages toensure most used fields show w/o scrolling
  82. 82. Where to Focus Invoices Changes Easy to See, Understand Use Folders to Ease Data Entry Most prone to problems Test updates/changes to Transactions All Types – Standard, Debit, Credit, Prepayment… Allocations Matching, Unmatching Transactions with Tax Transactions Created Before Upgrade Transactions Created After Upgrade Various statuses – Not Validated, Validated, Accounted Discard / Reverse / Recalculate Tax
  83. 83. Potential Approach Prioritize Uptake of optional functionality CRP1 Patch Current Learn New Forms Setup Payments for ease of use Test, Test, Test, Test, Test, Test Invoices Especially changes and especially if using Tax CRP2 Make sure still patched current (review notes) WRICEP, CEMLI Payment Templates Work Prioritized Optional Functionality List Freeze and Finish Upgrade (UAT, Go-Live)
  84. 84. Where to Find Information Information Centers Master Troubleshooting Guides Search Helpers OAUG Paper Database See paper for list of MOS notes in each category
  85. 85. Questions?Thank You !!Karen BrownfieldKaren.Brownfield@Infosemantics.com