1. “Thinking and doing global”European experiences of a worldwide R12.1 implementationEMEA R12 Project TeamMark White: BSA – Quest Software (UK) LtdAlastair Doe: Implementation Consultant - Woodoe Ltd
2. Reasons for implementing R12 Move to an expandable, supportable platform Process/control (SOX) improvements Standardize policies, procedures and process automation Reduce month-end closing/reporting time Improve multiple currency reporting and intro new COA* Strive more for standard Oracle functionality wherever possible *COA – Chart of Accounts
13. Global functionality for local business needs Ongoing system maintenance Heavy customisation High Medium customisation Medium Vanilla Low
14. Importance of training for go-live and on... Processes People Customer/business need Training = Systems
15. Challenges…Solutions Aggressive project timeline… OBA* usage EMEA localisations/EB-Tax… Woodoe Ltd EMEA representation… EMEA Finance Manager in US Communication… SharePoint/LiveMeeting/OneNote/UPK** Staying supportable post go-live… Rolling patch strategy CRM data cleanse… Address it well before R12 kick off *OBA – Oracle Business Accelerators **UPK – User Productivity Kit
19. Quest Accounting Architecture UK AdjustingLedger CORP COA CORP Calendar GBP UK GAAP ES Secondary Ledger UK Primary Ledger ES COA ES Calendar EUR ES GAAP CORP COA CORP Calendar GBP US GAAP ES Primary Ledger CORP COA CORP Calendar EUR US GAAP Ledger Set Share: Chart of Accounts Calendar FR Primary Ledger CORP COA CORP Calendar EUR US GAAP DE Primary Ledger CORP COA CORP Calendar EUR US GAAP US Primary Ledger CORP COA CORP Calendar USD US GAAP FR Secondary Ledger DEAdjustingLedger FR COA CORP Calendar EUR FR GAAP CORP COA CORP Calendar EUR DE GAAP = Subledger Level USD Reporting Currency
20. Multiple Accounting Representation of an AP Invoice FR Secondary Ledger FR Primary Ledger FR Reporting Ledger FR COA CORP Calendar EUR FR GAAP CORP COA CORP Calendar EUR US GAAP CORP COA CORP Calendar USD US GAAP SUB LEDGER ACCOUNTING Payables Invoice
21. ‘Accounting Set Up’ Design Highlights One to One mapping from Global COA to Statutory COA as far as to facilitate monthly journals with legally required statutory detail e.g.. Payroll taxes. Corporate Natural Account segment length increased to facilitate mapping without ‘Polluting’ corporate chart Use of ‘Adjusting’ Secondary Ledgers for non-statutory COA countries e.g.. UK, NL, DE etc – Preferred to adjusting ‘periods’. Use of USD Reporting Currency at SLA level non-USD functional US GAAP ledgers - this enabled the automation of historical cost accounting for Assets & Deferred Revenue. Timesaving benefit for Corporate Accounting
22. Accounting Set Up Lessons Learned Corporate to Statutory mapping – don’t underestimate the initial mapping effort that is required Ongoing additional work for EMEA Finance managers to ‘clean up’ & reconcile USD Reporting Currency ledgers (at subledger level) Entering Primary Ledger journals to clear out Primary & Reporting GL Account balance not straightforward e.g. VAT accounts Revaluation in Reporting Ledger – ‘Currency Clean’ Up required SLA method consistency for multi-period transactions (e.g. Deferred Prepayments) need to be defined in both Corporate & Statutory Accounting Methods Frequent scheduling of ‘Create Accounting’ programs in first few months of go-live to ensure early identification of unforeseen Accounting bugs
23. E-Business Tax Implementation Approach Engaged Tax Advisers to identify all transactions flows and determine the correct VAT Treatment for each flow The VAT transactions flows were used as ‘Test cases’ for the implementation Applied E-Business Tax seed data patch as per Metalink note 463001.1 – this contains Oracle suggested tax set up for 21 European countries (as per Oct-07). This was only used to accelerate e-business tax understanding by demonstrating potential rule design & limitations Standardised E-Business Tax basic set up (tax regime / tax status / tax code etc) & tax rules (EU countries and Non-EU countries ) Clear understanding of the E-Business Tax determining factors when designing rules e.g.. Determining factor relates to which Oracle field? Is this field populated automatically or user entered?
24. E-Business Tax Top Tips There is currently no API available to load Customer & Supplier Party Tax Profiles e.g.. Registration Status, Tax Registration Numbers. This is currently an enhancement request. Currently requires custom effort Operating Unit Party Tax Profiles - recommend not be use ‘Use Subscription from Legal Entity’ – this allows greater flexibility / security in rule design Entities with multiple EU VAT Regime subscriptions – need addition rule design to ensure only applicable VAT regime rules are applied to transactions with multiple countries Global intercompany sales transactions do not contain ‘Ship To’ information. Specific rules were defined to address these transactions
25. E-Business Tax Top Tips Using tax rule with ‘Not Equal To’ operator? See Metalink Note 1267188.1. Oracle have recently changed the logic if a NULL value is returned. If you are upgrading to 12.1.3 from a 12.0 check which rules are using the ‘Not Equal To’ Operator iExpenses not fully integrated into E-Business Tax module. Need to define ‘Tax Classification Code’ VAT rules & application defaulting rules Recommend thorough testing of ‘EMEA VAT Reporting Reports’ – ensure latest TRL patch is applied. Please see Metalink Note 1107453.1 for Oracle recommended set up for EU 2010 VAT changes
