The document provides an overview of new features in Oracle E-Business Suite Release 12 (R12). It discusses major initiatives in R12 including ledgers and ledger sets, subledger accounting, multi-org access control, advanced global intercompany system, tax engine, and bank model. It also covers improvements to the user experience, financial consolidation, and reporting capabilities. Additional topics include simplified self-service reporting, cash forecasting, and the user productivity kit.

1. E-Business Suite Connie Barbon, Oracle Senior Sales Consultant What’s New in Release 12

2. Agenda What’s New in R12 Overview Financials 6 Major Initiatives Other “cool stuff” Not really R12… Q & A Additional content on Projects and Human Capital Management included in slide deck <Insert Picture Here>

3. New User Experience

4. A New User Experience for R12 Accelerate global roll-outs with simplified user interface and business flows Reduced pop-ups and duplicate screens Re-designed and streamlined entire workflows Reduced the number of steps to complete key tasks Improved overall look & feel and visual style Increased personalization capabilities Campaign Management Customer Support Collections & Payments Loan Management Improved Workflow in Targeted Areas Financial Consolidation Online Candidate Registration Absence Management Salary Administration Self-Service Purchasing Sourcing Supplier Collaboration Business Intelligence

5. New User Experience New Fonts New Icons New Buttons New Background Pattern New Colors

6. 11 i User Experience - example Define/Assign Set of Books, Specify Conversion options/rules Multiple steps required to assign sets of books and specify conversion options/rules Defining a set of books takes 5 tabs to accommodate all fields and rules

7. Superior Ownership Experience R12 - Single Page for Accounting Setup Legal Entities Ledgers Currencies Balancing Segments Subledger Accounting Operating Units Balancing Options

8. Oracle Financials What’s New in Release 12

9. What’s New in R12 Financials 6 Major Initiatives Ledger and Ledger Sets Subledger Accounting MOAC Intercompany Tax Engine Bank Model Bank Model -% Tax Engine Inter Company General Ledger Ledger & Ledger Sets General Ledger Ledger & Ledger Sets Subledger Accounting (SLA) Dr Cr Projects Receivables Inventory Work in Process Purchasing Payables Multi-Org Access Control

10. <Insert Picture Here> Ledgers and Ledger Sets

11. Ledgers in Oracle A set of accounting information for a legal or business entity Each ledger is associated with a Chart of accounts, Calendar, Currency , and Subledger Accounting Convention for which accounting information is recorded 11i & Prior = Sets of Books 3 C’s: Currency, Calendar, Chart Seeded Conventions: Standard Accrual Standard Cash Accrual w/ Encumbrance Cash w/ Encumbrance US Federal Accounting China Standard Accrual R12 = Ledgers 4 C’s: Currency, Calendar, Chart, Convention

12. Multiple Accounting Representations Parallel Financial Reporting with Ledgers US GAAP US COA US Calendar EUR Ledger B French Rules French COA French Calendar EUR Ledger A Subledger Accounting Single subledger transaction can create multiple accounting representations and in multiple currencies Dr Cr Payables Invoice

13. Multiple Ledgers Primary Ledger the main “Activity” Ledger Usually in the local currency For Operational reporting Secondary Ledger (ex. France requires Statutory Chart) Differs from Primary Ledger by Chart, Calendar, and/or Convention For Statutory, Tax or Consolidated reporting Reporting Currency Ledger Differs from Primary Ledger by Currency ONLY Just a translation of the Primary Ledger – no rules required For Consolidated reporting

14. Ledger Sets Global Information At A Glance Ledger Set Key benefits to many Ledgers in one set Decision-driving business information always available Simpler processing and General Ledger management Data and definitions that can be shared and secured US GAAP US COA US Calendar USD Ledger C French Rules French COA French Calendar EUR Ledger A Ledger D Reporting Currency US GAAP US COA US Calendar AUD US GAAP US COA US Calendar EUR Ledger B Share: C hart of Accounts C alendar

15. LEDGER SETS Grouping of ledgers with the same chart of accounts and calendar/period type combination Essentially treats multiple ledgers as one

16. Perform the Following Across Ledgers Using Ledger Sets Open/Close Periods Create Journals Allocations Across Ledgers Recurring Journals for All Ledgers Elimination Sets for All Ledgers Translate and Revalue Balances View Information without Changing Responsibilities View Journals and Account Balances Across Ledgers Submit Standard Reports Create Financial Statements that Include Data for Multiple Ledgers

17. Ledger Set Benefits Shorter Close Process Run month-end close processes across multiple ledgers simultaneously Greater flexibility to decentralize/centralize accounting functions The corporate office can control the period status for multiple subsidiaries at once Real-Time Enterprise-Wide Visibility Quickly report across the entire enterprise in real-time because no transfer of data is required Reported results are accurate and timely because they are based on the transactional system, not a data warehouse

18. More Efficient Access to Ledger Data No need to change responsibilities to access data in different ledgers Processing Efficiency Essentially treats multiple ledgers as one and eliminates the overhead of having a high number of ledgers defined Reduces the number of repetitive tasks that offer limited value and allows you to spend more time on value-added tasks Reporting Efficiency Obtain “flash” reports throughout the accounting cycle to proactively manage the business instead of waiting until the end of the month when the data collected is backward looking Ledger Set Benefits

19. Impacted Applications Ledger Sets Ledger Sets used by General Ledger Some AR and AP reports use Ledger Sets

20. Impact/Upgrade Considerations Ledger Sets None; All sets of books upgraded to ledgers Only need to define ledger sets to obtain processing efficiencies

21. <Insert Picture Here> Subledger Accounting

22. Subledger Accounting Centralized Rules, Common Repository: Global Control Payables 3 rd Party Systems 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 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 Work in Process Purchasing Projects Receivables 3 rd Party Systems Inventory SLA = Centralized Accounting Model, Rules, Engine and Repository Dr Cr General Ledger General Ledger

23. Introduction to Subledger Accounting Rule-based accounting engine, toolset & repository supporting Oracle E-Business Suite modules Allows multiple accounting representations for a single business event, resolving conflicts between corporate and local fiscal accounting requirements Retains the most granular level of detail in the subledger accounting model, with different summarization options in the General Ledger , allowing full auditability and reconciliation Introduces a common data model and UI across subledgers , replaces various disparate 11i setups, providing single source of truth for financial and management analysis

24. Introduction to Subledger Accounting DUAL POSTING SIMULTANEOUSLY Invoice Internal Identifier: 1001 Ledger: FR Statutory GL Date: 2-Mar-2006 Invoice# 100 Supplier: ABC Networks Invoice #100 ABC Networks 2 Monitors – Marketing $1000 5 Printers – Marketing $ 500 Freight $ 100 Tax $ 110 Total $1710 Ledger: US Corporate GL Date: 2-Mar-2006 Invoice# 100 Supplier: ABC Networks Invoice Internal Identifier: 1001 DR CR 1 Expense 01-EXP-200 $1500 2 Freight 01-FR-200 $100 3 Tax 01-TX-200 $110 4 Liability 01-LIAB-200 $1710 Invoice Line 1 Invoice Line 2 Invoice Line 3 Invoice Line 4

25. Transactions vs. Accounting SLA provides a distinction between a transaction and the accounting representation of the transaction ( there can be multiple representations of one transaction) Accounting distributions did not necessarily go away Needed for upgrade customers Needed as starting point for SLA (Don’t want to force customers to define their own SLA rules) In some cases, necessary to allow user input Most default SLA rules just ‘pass through’ the distribution accounts (where applicable)

26. Streamline Accounting

27. Impacted Applications General Ledger Payables Receivables Projects Assets Costing OPM Public Sector/Federal Payroll Property Manager Loans Lease Management (Post R12) Cash Management Globalizations Intercompany

28. Subledger Journal Entry – more info

29. Subledger Entry vs. GL Journal Entries Many to One Invoice No: 136274 GL Date: 01/27/07 3 rd Party: Fender 101.100.63580.0000.720.000.000 6,000 EUR 101.100.22100.0000.000.000.000 6,000 EUR Invoice No: 131299 GL Date: 01/27/07 3 rd Party: Gibson 101.100.63580.0000.720.000.000 3,000 EUR 101.100.22100.0000.000.000.000 3,000 EUR Invoice No: 116555 GL Date: 01/27/07 3 rd Party: Kramer 101.100.63580.0000.720.000.000 2,000 EUR 101.100.22100.0000.000.000.000 2,000 EUR Batch: AP Invoices 27-Jan-07 GL Period: Jan-07 101.100.63580.0000.720.000.000 11,000 EUR 101.100.22100.0000.000.000.000 11,000 EUR SLA JE #1 SLA JE #2 SLA JE #3 GL JE #1 Controlled by GL JE Summarization setting for each Subledger App (AP, AR, etc): Summarize by GL Date, by GL Period, or No Summarization

30. Upgrade Considerations By default, the R12 upgrade migrates at least 6 periods of accounting entries from each application to the SLA data model. You can modify this if desired. For prior periods, the historical data is preserved. You can drill from General Ledger to the historical transactions using standard GL drilldown

31. <Insert Picture Here> Multi-Org Access Control (MOAC)

32. Responsibility Responsibility Responsibility Holland Legal Entity Denmark Legal Entity Belgium Legal Entity Belgium Operating Unit Holland Operating Unit Denmark Operating Unit Perform multiple tasks across operating units without changing responsibilities MOAC: M ulti- O rg A ccess C ontrol Role based access to Operating Units Functional Tasks Order Management Dunning, Collections, Billing Requisition, Demand & Purchase Orders Receiving & Drop Ship Invoice Receipt, Disbursement Customer Data Management Accounting Setup Single Responsibility

33. Multi-Org Access Control Setup Define Security Profile Classify Organization as operating unit Specify Operating Units

34. MOAC Typical Screen in daily use Select Operating Unit during Input

35. <Insert Picture Here> Advanced Global Intercompany System (AGIS)

36. Advanced Global Intercompany System Address the Top Barrier to a Fast Close Web UI Open Interfaces / API Excel (Web ADI) Advanced Global Intercompany System Generate subledger invoices Control transaction entry with Intercompany Calendar Fully Configurable Approval Rules Flexible Security Model Centrally defined Intercompany Accounts Subledger Invoices & Documents Online Reconciliation Reporting XML Publisher Reports Subledger Accounting Dr Cr General Ledger Receivables Payables

37. Intercompany Journal Across Ledgers

38. Intercompany Due To / Due From lines automatically generated

39. AR Invoice billed to SSC France from SSC US (NY)

40. <Insert Picture Here> Tax Engine

41. Centralized Global Tax Less Complex Global Tax Compliance 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 Tax simulator for setup, rules, and transactions Business Needs Solution 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.

42. E-Business Tax Centrally manage tax transactions across entire E-Business Suite Tax Transactions Tax Setup/Rules Internet Expenses Receivables Order Management General Ledger Purchasing Internet Procurement Inter-Company Invoicing Payables Single Repository of transactions for global business insight Centralized rules applied to transactions to manage globally and reduce risk Automation of tax processes on transactions to improve operational efficiency Improved Reporting Effective Date Setup Extensible architecture that supports additions, e.g. Self-assessed Use Tax

43. eBusiness Tax Tax determination, not just tax codes… User determines tax by assigning Tax Codes Tax rules in code Global descriptive flexfields for country-specific tax attributes Granular setup at OU level Before R12 R12 eBTax determines tax based on facts about each transaction Tax rules you can see Tax attributes collected in fields on key entities Configure tax rules once per regime and share with your legal entities Facilitates compliance Improves auditability

44. <Insert Picture Here> Bank Model

45. Centralized Banking Shared Services Disbursements Bank account is now associated with LE entity rather than Operating Unit Single bank account serves multiple Operating Units For Internal Banks and Customer & Supplier Banks Enhanced Reconciliation Assets Projects Receivables Payables Purchasing Projects Receivables Payables Inventory PLUS: Centralized Credit Card Model Supplier & Customer Banks in TCA Work in Process LE OU A OU B OU C

46. Bank Model: Example of what you can do Pay invoices from different OUs with 1 instruction New Payments Module New Bank Module New Bank & Credit Card Features OU A OU B OU C Bank Single Payment Instruction Invoices Payments Sub Ledger Accounting

47. Banks Define Owner of Bank Account Specify Legal Entity Owner Where is Account used?

48. Select Multiple LE’s, OU’s, Currencies in single Payment Run

49. <Insert Picture Here> Miscellaneous Cool Stuff…

50. Report Repository Online “file cabinet” to where Financial Reports are published

51. Add Report to Menu

53. Control Accounts Control Account – Prevents posting other than automatically from Subledgers

54. Replacement Accounts Replacement Account will be posted to in place of Disabled Account

55. Submit or Schedule Payment Process Request Payments Dashboard

56. Use Payment Template to Default values Pay Multiple Legal Entities, Operating Units, and Currencies in one Payment Run

57. Can do STP (Straight Thru Processing) or Review/Edit selected Invoices

58. Pending Actions walks you through process

59. Positive Pay Program

60. Internet Expenses - Allocations Edit Coding of Expense Lines

61. Allocate Expense Lines * even to Projects

62. Internet Expenses – Bar Coding Bar Coding of Expense Reports

63. Cash Forecasting Seamless Integration – GL, AR, AP, OM, Payroll, Purchasing, Sales, Treasury External Systems Receipts, Invoices Payments, Invoices, Expense Reports POs, Requisitions Labor, Usages, Misc Budgets, Billing Events Treasury Deals Sales Opportunities Sales Orders Payroll Expenses Budgets, Encumbrances

64. Robust Cash Forecasting Cash Forecasting is a planning Tool that helps you anticipate the flow of Cash in & out of your business, allowing you to project your cash needs. Drill down to transaction details Specify Sources Include/Exclude lines

65. Flexible Cash Positioning Cash Positioning is a planning tool that allows you to view your daily cash position by Bank Acct, Cash Pool, or Currency. Drill down to details Online refresh capabilities Automatically generate cash transfers View by currency, bank account or cash pool Save Projected Balances for Reporting

66. “ Cash Leveling” Proposal – initiates Bank Transfer

67. <Insert Picture Here> Not Really R12 – But still cool…

68. Simplified Self-Service Reporting BI (XML) Publisher Put reporting in the hands of the business user Create report formats using desktop tools (Adobe Acrobat, MS Word, MS Excel, and XSL Editors) Publish in any format, to the web and electronically Drive reporting consistency with one source of data Benefits Replaces most standard reports with data extracts and templates Merges custom templates and data extracts at run-time Delivers output in PDF, HTML, RTF, Excel (HTML), or text for use with EFT and EDI transmissions Reporting Evolution “ Oracle’s new XML Publisher is visionary and empowers end users. This new capability gives customers the look and feel of Excel with a desktop publishing look to reports, and enables users to create their own reports, minimizing the dependency on the IT staff.” -- Sean Malinski, Accenture Partner, Global Business Solutions - Oracle Practice

69. Old Standard Reports

70. New Standard Reports (HTML)

71. Oracle BI Publisher Many, many, many Standard Reports Multiple formats per report Merge Data with Contract Terms User-defined templates Boardroom Quality Output

72. Oracle Business Intelligence Comprehensive View of Financial Performance Payables Analytics Provides visibility into payments due to suppliers and expense line detail so managers can manage cash outflows and control expenses. When combined with Supply Chain Analytics, it allows full procurement analysis from Requisition to Check. Receivables Analytics Monitors collections processes to show what customers buy and how they pay, enabling managers to identify overdue balances and other receivables bottlenecks. When combined with Oracle Sales Analytics and Oracle Order Management & Fulfillment Analytics, it enables more efficient management of the entire Lead to Cash process. General Ledger & Profitability Analytics Incorporates detail-level general ledger transactions and cash flow analysis across locations, customers, products, sales territories, distribution channels, and business units. Identifies the customers and transactions that are providing maximum profits by product, location, department, and geographic detail. When combined with Marketing Analytics, it enables analysis of Campaign ROI and assists in customer segmentation.

73. Oracle Business Intelligence

78. What is UPK … … a comprehensive, cost-effective solution that helps your organization quickly create critical documentation , training, and support materials needed to drive project team and increase user productivity throughout the lifecycle of your software. You Perform a transaction, Record it, and Publish it Training Guides Web-based Training Job Aids Test Scripts WORKS WITH 11.5.9 and above User Productivity Kit (UPK)

79. See It! Enables you to learn by watching an animated demonstration of tasks being performed in a simulated environment. Try It! Enables you to learn interactively in a simulated environment. The Player provides you with instructions as to what needs to be done to complete a task, but you perform the actual steps. Know It? Enables you to test knowledge gained from training. You are instructed to complete the steps for a particular task and are scored on how accurately you complete the steps. Do It! Guides you in the performance of the actual task in a production environment. You learn by completing the actual task. UPK Playback Modes

81. New in Financial Control & Reporting Highly automated financials processing drives efficiencies EFFICIENCY FLEXIBILITY AUDITABILITY 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 balancing segment values Control Accounts Accounting and reporting sequencing Journal line reconciliation

82. New in Procure-to-Pay Integrated Suite Optimizes Working Capital PRODUCTIVITY COST SAVINGS INTEGRATION 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 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

83. New in Credit-to-Cash Accelerate cash cycle and manage revenue with fiscal discipline Visibility to carry-forward balances with cycle-based billing Payment application according to customer preferences COMPLIANCE BETTER CASH FLOW INDUSTRY SUPPORT 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 Credit recommendation enhancements Conversion of delinquent receivables to payment plans

84. New in Cash and Treasury Optimize Cash and Treasury Operations 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 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 EFFICIENCY COMPLEXITY FLEXIBILITY

85. New in Asset Management Maximize return on assets Group Assets to include “Units of Production” method Energy straight-line depreciation method Asset impairment of a producing asset EFFICIENCY PERFORMANCE INDUSTRY SUPPORT Automate legacy asset conversion with enhanced preparation of Mass Additions Perform rollback on select assets with Automatic Depreciation Rollback

86. New in Travel & Expense Lower the total cost of travel and expense Self-service cash advance application during entry Bar code generation Streamlined receipts management with receipts tracking and receipts missing capabilities LOWER COSTS ACCURACY PRODUCTIVITY CONUS and OCONUS global per diem rates Per diem and policy schedules Expense splitting across multiple accounting segments Enhanced cost center and projects approvals

87. <Insert Picture Here> Why Upgrade ?

88. Why Upgrade Straight Talk from Customers “ Ability to issue one payment instruction to the bank for payments of invoices in multiple operating units was viewed as a huge benefit from the user community.” “ We have 60 sets of books and see tremendous efficiencies with running processes across these sets of books using Ledger Sets .” “ The ability to access multiple operating units with a single responsibility can simplify SOX compliance monitoring.” “ Multi-Org Access Control (MOAC) will definitely reduce the workload and the number of people performing process related tasks. The users are very excited and the benefits of MOAC were readily visible to them.” “ Banks, taxes, payments, and accounting – everything that becomes centralized will bring tremendous efficiencies to our organization.” “ The functionality offered with Advanced Global Intercompany System (AGIS ), specifically the creation of physical invoices to be created for I/C transactions in Payables and Receivables eliminates many customizations in this area.” “ Centralization of subledger accounting rules would minimize set up and maintenance, providing greater financial control , and enforcing a consistent approach for true global accounting .”

89. New in 11i.10… Base Differentiators… Daily business intelligence for financials Global single instance and shared service center support Global language, currency and regulatory support Unified data model Industry leading performance and scalability Unified customer model with data quality management tools Integrated collections management Online receipt and dispute management Online supplier procurement and payment management Property and real estate management New in R12… Compliance-driven financial consolidation and reporting Enterprise planning and budgeting Audit operations, compliance and certification management Web services for financials XBRL financial reporting Enhanced bill presentment: user definable formats and online drill down capabilities Enhanced credit, collections, and trade management integration flow Self-service asset management Enhanced credit card business flow management Cash positioning and forecasting Supplier open interface Ledgers and ledger sets Centralized rules-based accounting engine Single, global tax engine Unified bank account model Centralized payments engine Common global intercompany system Shared services support with multi-org access Improved user experience Centralized data model for suppliers and banks Accounting & consolidation engine for Financial Services Multi-dimensional profitability analysis Fusion Middleware certification Enhanced integration repository Retek integration Evolution of Oracle Financials

90. Q&A