r12 ebs upgrade for immersion

7/30/2019 R12 EBS Upgrade for Immersion

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E-Business Suite R12 Financials Upgrade Impactsfor Immersion Training , September 2006

Amy Andrews

Director, Applications Development


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Agenda

R12 Architecture Overview & Upgrade Premise

Upgrade Impacts and Considerations

TCA

Legal Entity

E-Business Tax Ledger

Multi-Org Access

Subledger Accounting

Banks

Payments Advanced Global Intercompany

Payables, Receivables, Assets

Deciding to Upgrade


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ControlledTransactionEntry

Comprehensiveand compliant

processing

TransparentAudit,

Reconciliation& Drilldown

Easy Reporting

Analytics

You asked us: Simplify & Standardize

Work Globally,

to be more competitiveThink Globally,to make the right decisions

Manage Globally,to lower cost and increase performance

FinancialData for

Management- and

Compliant

National ComplianceLocal RegulationNational COALocal Calendar

Corp. ComplianceUS GAAP / IAS-IFRSCorp COACorp Calendar

$

Joint ComplianceUS GAAP / IAS-IFRSCorp COACorp CalendarA$+$

Parent ComplianceUS GAAP / IAS-IFRSCorp COACorp Calendar

+$

+


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Global Financial Architecture

BankModelTaxEngine InterCompany

General Ledgeredger & Ledger Setseneral Ledgeredger & Ledger Sets

Subledger Accounting (SLA)Dr Cr

ProjectsReceivablesInventory

Work in Process Purchasing Payables

Multi-OrgAccessControl

6 Major Initiatives1. Ledger and

Ledger Sets

2. Multi-OrgAccessControl

3. SubledgerAccounting

4. Tax Engine

5. Intercompany

6. Bank Model


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Work Globally Global Order Desk

Global Procurement

Global Billing

Global Dunning

Think Globally Global Ledger Sets

worldwide insight

Global Reporting

Manage Globally Global Accounting

Rules

Global Set-up

Global Integration

What the Architecture Gets You

Release 12 Subsidiary LEs.

account for themselves in Ledgers,

and

Ledger Set

Company CompanyCompany

ProjectsReceivablesInventory

Work in Process Purchasing Payables

Multi-OrgAccessControl

manage their subledger data in Operating Units


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Data Management w/TCA


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Data Management with TCALeveraging centralized data model

Oracle Fusion Middleware

TradingCommunity

Architecture

ERP CRM 3rd Party

PayablesPurchasingGlobal Tax Payments

Suppliers

Geographies Party

Information

CashManagementBanks and

Branches


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Data Management with TCA

TCA Party base for

Legal Entities and Establishments

Suppliers, Customers, Students

Banks and Bank Branches

Intercompany Parties (is this the right term?)

TCA Relationship Model

Parent Suppliers for subsidiaries or franchises

Intercompany Parties mapped to Legal Entities

Inter/Intracompany trading partners (customers/suppliers)

TCA Geography Model Simple eBTax rules

Group countries

Compound rates for state, county, city


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Legal Entity


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Legal Entity

A Legal Entity is an entity identified through a registration

with a Legal authority

Legal Entities have the right to Own property (assets, inventory, receivable, other LEs)

Trade(borrow, sell, buy, incur expenses, employ)

And the responsibility to

Repay debt (liabilities, equity)

Pay Taxes

Account for themselves (legal reports, audits)


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Legal Entity

New Legal Entity (XLE) Data Model

Common Framework facilitates compliance

Identification information

Address information

Contacts

Establishments & registration numbers TCA party base

Migration of 11i HR Organizations

GRE/LEs migrated as Legal Entities and Main Establishments

OUs (and inventory orgs) associated to the GRE/LE migrated as

Establishments TCA Parties for all!

What if you modeled LEs as BSVs, not Orgs?

No upgrade of BSV representation to LEs

Payables Reporting Entities migrated


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Legal EntityLegal Entity Configurator


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Legal EntityHR Org Definition, Country Information

11i HR Org Location

LEs country derived based on country of location associated

with OU in HR Orgs

Where Used during R12 Upgrade?

eBTax - to determine appropriate regime(s) for taxdetermination

eBTax to name upgraded 11i location-based taxes

GL upgrade

Bank upgrade


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Legal EntityMigration of 11i HR Organizations

Country of OU

GRE/LE


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Legal EntityStamped on Transactions

Default Legal Context

DLC specified for an OU

Transactions entered for OU

OU ties to LE through GLs Accounting Setup flow

Legal Entity stamped on transactions during upgrade Payables

Receivables

Used for

eBTax 1st party LE determination

Statutory reporting

Funds disbursement


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EBTax


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E-Business Tax

New Tax Data Model


Tax Repository, Tax Reporting Leger and XMLP Reporting

Integration with 3rd party content providers

No more Global Descriptive Flexfields for tax data

New fields for Customer, invoice, invoice lines

New fields for Supplier, invoice, invoice

More accurate tax calculations than picking tax code

Configuration by Tax Manager, not IT Tax Simulator


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TaxTransactions

Taxes,Rules

DetermineRegimes

TaxableBasis

CalculateTax

Amount

Tax Status& Rate

ApplicableTaxes

Single Interface for Transactions

Transparent Integration with Tax Partner Services

Parties

Places

Products

Processes

Payables

Receivables

Purchasing

Transactions

Sales Orders

E-Business Tax


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eBTax, Uptake by Product

Transaction Taxes for Procure to Pay and Order to Cash

Exceptions:

Latin Tax Engine

Withholding Tax

Internet Expenses; 11i style only

General Ledger Tax Calculation; 11i style only

Replaces:

Global Tax Engine

Automatic Tax Calculation Brazilian AP/PO

General Ledger Automatic Tax Calculation


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eBTax, Transition Options

11i Style Tax code on transaction drives tax calculation

12 Style

Use eBTax rules for tax determination based on facts of the

transaction Opportunity for single source tax rules

Phased uptake encouraged

Layer rules on top of 11i style base

For example: set up rules for VAT recovery so system can determine domestic

vs. foreign transactions for you

Set up rules for USE tax


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eBTax, Upgrade Impacts11i Style, Tax Codes Preserved

Upgrade of 11i style Tax Code

Tax Code upgraded to Tax Classification Code, Rate and

direct rate determination rule

AP and PO to input tax classification codes

AR and PA as output tax classification codes Migrated in the context of eBTax setup

Each OU becomes a Party

Each Country becomes a Regime

Consider: standardizing tax codes and their use

before upgrade


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eBTax, Upgrade ImpactsNaming Conventions

Upgrade of 11i Tax Code to R12 Tax Classification

and Tax Rate

Tax Classification Code: Take 11i tax code, remove

numeric values e.g. VAT10 becomes VAT

Tax Rate: Take 11i tax code and use that to name theR12 tax rate (e.g. VAT10 becomes R12 rate VAT10

Tax Status is standard for all upgraded tax codes.

Demo or Screenshot: Look at a Tax Code from 11iand check out the tax classification and Regime toRate Flow that will be migrated.


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eBTax, Party Tax ProfileOU migrated to tax content owner in R12

Tax Rules

Party Specific Configuration

Regime=Country

Party =OU

Party Tax Profile


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eBTax, Upgrade ImpactsRegime-to-Rate Flow


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eBTax, Upgrade ImpactsTax Rules


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eBTax, Upgrade ImpactsParty Tax Profile

Party Tax Profile created to group tax attributes of 1st

(you) and 3rd (customer/supplier) party legal entities.

rounding rules and levels

tax classifications (defaults) set here

registration information including multiple registrations! Exemptions & exceptions

GDFs for party classification and reporting

Upgrade creates PTP for every Party and Party Site


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eBTaxParty Tax Profile Conceptual Diagram

Tax Rules

Global Configuration

Tax Rules

Party Specific Configuration

RegimeLegalEntity

Legal

Entity

3rdParty

LegalEntity


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eBTax, Upgrade ImpactsParty Tax Profile links to Regime & Configuration


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eBTax, Upgrade ImpactsRegime links to Jurisdiction


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eBTax, Upgrade ImpactsParty Tax Profile, upgraded defaults


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eBTax, Upgrade ImpactsLE Establishment Transactional Tax Profile


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eBTax, Upgrade Impacts11i Tax Code Defaulting Hierarchy

11i defaulting hierarchy specified in AR/PO/AP and

PA system options

Upgraded to tax classification code defaulting

hierarchy in Application Tax Options (for each OU and

application product)

Demo/Screenshot: Application Tax Options


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eBTax, Upgrade ImpactsApplication Tax Options


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eBTax, Upgrade Impacts11i Style Location-Based Tax in PA and AR

Upgrade of 11i style Location-Based Tax in PA and

AR

11i setup migrated to global configuration owner

Upgrade creates:

Tax Regime for ea Geography structure define at the ARSystem Options level

Tax Jurisdictions for each Tax Zone within the context of a

Regime and Tax

Tax Rates

Location values from Sales Tax Key Flexfield migrated into

TCA Geography model


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eBTax, Upgrade ImpactsTax Transaction Upgrade

R12 Tax Repository

Single repository of detailed tax lines

AP, PO and AR

Easy reconciliation between transaction, tax and accounting

Tax distribution ids are stamped on ar/ap tax lines Tax distribution ids also on accounting transaction


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eBTax, Upgrade ConsiderationsTransitioning to R12 eBTax

Benefits

Minimize the need for detailed regional tax knowledge

Simplify setup

Minimize the risk associated with tax compliance

Automatic tax handling for sales & use tax

compound tax & surcharges

deferred tax

multiple tax registrations

Features of eBTax date effectivity

Simulator (on production)


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eBTax, Upgrade ConsiderationsTransitioning to R12 eBTax

Define eBTax rules at your own pace

Gradually layer eBTax rules on top of 11i Style tax

Identify opportunities

Classify your tax exceptions

Item

intended use

place of supply

Look for commonalities

Define a classification rule to apply to many suppliers Group geography facts using TCA Geography model


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General Ledger

Ledger Sets


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Ledger SetsGlobal Informat ionAt 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 GAAPUS COAUS CalendarUSD

Ledger C

US GAAPUS COAUS CalendarEUR

Ledger BFrench RulesPlan ComptableFrench CalendarEUR

Ledger A

Share:Chart of AccountsCalendar

Ledger D

Reporting Currency

US GAAPUS COAUS CalendarAUD


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Define Multiple Ledgers

for Rules & Currencies

Define Legal Entities& Associated Rules

One Place to manageYour Global Accounting

Rules, Currencies,Ledgers,And Ledger SetsSet Accounting Rules

for All EBS Apps

Ensure Complete

& AccurateSetup via Online Checklist

Centralized Set-upAccounting Setup Manager


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General LedgerAccounting Setup Flow

Upgrade creates one accounting setup for each primary ledger,upgraded from SOB

Accounting setup defines the accounting context for one or more legalentities or other business entities.

Accounting Setup Components

Legal Entities: Legal entities can be manually assigned to a ledger andbalancing segment values can optionally be mapped to legal entities to helpyou identify transactions by legal entity during transaction and journalprocessing.

One Primary Ledger Operating Units Reporting Currencies: Multiple Reporting Currency (MRC) reporting sets

of books become reporting currencies in Release 12

Secondary Ledgers


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Accounting Setup Components continued

Intracompany Balancing: Intercompany Accounts in Release 11iisrenamed to Intracompany Balancing Rules, a feature provided by the new

Advanced Global Intercompany System

Intercompany Accounts: The Release 11iGlobal Intercompany System(GIS) will be replaced by Advanced Global Intercompany System (AGIS).The following Release 11iGIS features will be migrated to the

corresponding features in AGIS: Subsidiaries, Intercompany Transaction

Types, Intercompany Clearing Accounts, and AutoAccounting Rules

Before Upgrade: Run theAccounting Setup Manager Pre-Update

Diagnosis Reportto correct any issues

After Upgrade: Run theAccounting Setup Manager Post-Update

Diagnosis Report


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OperatingUnits

Legal Entities

Ledgers


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General Ledger, Upgrade ImpactsLegal Entities and Ledgers

Recap

GRE/LEs migrated as Legal Entities and Main Establishments

GRE/LEs link to SOB migrated to GL Accounting Setup

Sets of Books become Ledgers

Accounting Setup created for each primary ledger, link maintained

w/LEs and OUs

Default Legal Context assigned to OU

All Balancing Segment Values (BSVs) will be available for data entry for the

legal entity and ledger (same as R11i)

Assign BSVs if

You want to use Advanced Global Intercompany System

You require data segregation within a Ledger for reporting purposes


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General Ledger, Upgrade ImpactsLegal Entities and Ledgers

The following will be upgraded to Secondary Ledgers: Global Accounting Engine (AX) Posting Set of Books

Secondary Set of Books defined in Accounts Payable (AP) if you

use Combined Accrual & Cash Basis Accounting

Fixed Assets If an Assets corporate book and tax book(s) are linked to the

same General Ledger set of books, the set of books will be a

primary ledger in Release 12

If an Assets corporate book is linked to a different set of books

than its tax book(s), the set of books linked to the Assetscorporate book will be a primary ledger and the set of books

linked to a tax book will be a secondary ledger


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General Ledger, Upgrade ImpactsAX

Upgrade migrates main sets of books to primary ledgers

Upgrade migrates posting sets of books to secondary ledgers

Special Case: If you have multiple main sets of books linked to one

posting set of books, this configuration will upgrade to multiple primary

ledgers that have the same secondary ledger assigned

You can continue to use this configuration in Release 12, but you may

not be able to use some new R12 features

For example, you will not be able to query accounting setups in Accounting

Setup Manager by the secondary ledger; you will only be able to query

accounting setups by the primary ledger. You will be able to view the

secondary ledger in allof the accounting setups for the shared primary

ledgers using Accounting Setup Manager.


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General Ledger, Upgrade ImpactsMRC, primary ledgers with reporting currencies

Release 11iMRC primary sets of books and assigned reporting sets ofbooks become primary ledgers with assigned reporting currencies in

Release 12.

Default = subledger-level reporting currencies

If MRC_DEBUG profile option is set to zero, reporting set of books will

become a journal-level reporting currency Reporting Set of Books options migrated to Reporting Currency Options

Data Access Set that includes the primary ledger and all of its assigned

reporting currencies will automatically be created during the upgrade

11iprofile option GL/MRC: Post Reporting Journals Automatically

obsolete in R12. All reporting currency journals will be automaticallyposted when posted in the source ledger.


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General Ledger, Upgrade ImpactsMRC, reporting currency conversion levels

Reporting currency conversion levels

Balance (use GL Translation)

Journal (use GL Posting by setting conversion level; results

like 11i Thin MRC)

Subledger Journal (use SLA; results like 11i Full MRC)

SLA automatically handles the creation of the

subledger journals for reporting currencies

G l L d U d I


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General Ledger, Upgrade ImpactsMRC, reporting currency conversion levels

Default = Nosince SLAhandles

G l L d U d I t


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General Ledger, Upgrade ImpactsMRC options

Reporting Currencies inherit the same ledger options as their sourceledger

Upgrade preserves 11isettings, but if you modify any of the ledgeroptions for the source ledger after the upgrade, the settings on thereporting currency will automatically be changed to be in synch with thesource ledger

Number of Future Enterable Periods

Rounding Differences Account

Reserve for Encumbrance Account

Retained Earnings Account

Intracompany Balancing Rules Enable Journal Entry Tax

Journal Reversal Criteria Set

Require Budget Journals

Period End Rate Type

Period Average Rate Type

Translation Adjustment

Account Secondary Tracking Segment

Descriptive Flexfields

Suspense Account

G l L d U d I t


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General Ledger, Upgrade ImpactsMRC, Upgrade Scenarios

Suspense Posting If enabled for the primary set of books and notenabled in the reporting set

of books in Release 11i, then in R12, the reporting currency will have

suspense posting enabled and use the same suspense account as the

primary ledger.

Ifnotenabled for the primary set of books but enabled in the reporting setof books in Release 11i, then in R12, the reporting currency will also not

have suspense posting enabled to be in synch with its source ledger.

Average Balances or Average Balance Consolidation

In 11i, you could set these options for the primary set of books

independently of the reporting set of books. In Release 12, users can only

set these options for the ledger and the reporting currency will inherit the

attribute from its source ledger. For upgrade cases, Oracle will preserve

the Release 11iconfigurations.

G l L d U d I t


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If you currently have multiple primary sets of books linkedto one reporting set of books in Release 11i, thisconfiguration will be upgraded to multiple primary ledgersthat share the same reporting currency. Not a recommended configuration

You will not be able to use some of the new Release 12 featuresusing this configuration

Reporting currency will synchronize its settings to be in synch withthe primary ledger that was most recently updated

Be aware that users who had access to the reporting set of books in

Release 11iwill have access to all of the reporting currencies for asingle primary ledger. In addition, users who had access to theprimary ledger will now have access to the reporting currency aswell.

G l L d U d I t


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Reporting set of books not assigned to a source ledger Upgraded to primary ledgers

You can continue to use the upgraded primary ledger for journal

processing

If you do not want these unattached reporting sets of books to beupgraded to primary ledgers, then before the upgrade, you should

assign the reporting set of books to a primary set of books using the

Assign Reporting Set of Books form in Release 11i

Reporting set of books with disabled relationship to a

primary sob upgraded as a disabled reporting currency assigned to the

upgraded primary ledger

G l L d U d I t


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Inconsistent MRC Setup Between Products and OUs Before Upgrade: Run theAccounting Setup Manager Pre-Update

Diagnosis Reportto correct any issues

In Release 12 reporting currency conversion options are

synchronized across all products and operating units for that

reporting currency

G l L d U d I t


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General Ledger, Upgrade ImpactsSubledger Accounting Integration

Subledger Accounting Method Upgraded ledgers have Standard Accrual or Standard Cash

Reporting currencies inherit the subledger accounting method from

the source ledger

You will be able to use the ledger immediately after the upgrade Suspense Account: 11i migrated to Entered Currency Balancing

Account

Rounding Differences Account: no default assigned

Subledger Accounting Reporting

Specify ledger (or ledger set) when submit reports like Open

Account Balances Listing (Trial Balance, Posted transaction

registers, agings, etc.)

G l L d U d I t


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General Ledger, Upgrade Impacts

Period Rates Migrated to daily rates

Conversion rate type name of Period End

Conversion rate type name of Period Average for

period average rates Revaluation

Upgrade assigns daily rates to ledgers

Secondary Segment Tracking for Revaluation

Share Revaluation set across ledgers (w/same COA) but specify

different secondary tracking options

During the upgrade, revaluation sets will keep the same

gain/loss account templates as originally defined

G l L d U d


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General Ledger, UpgradeConsiderations

Sets of Books to Ledgers, tables and ids remain thesame SOB_ID becomes LEDER_ID

GL_SETS_OF_BOOKS becomes GL_LEDGERS

Most common customizations are on GL Interface

SOB_ID remains

LEDGER_ID added

GL processing and queries

GL_SETS_OF_BOOKS view to ledgers Miscellaneous GL tables

Update column references to LEDGER_ID


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Multiple Organizations

MOAC M lti O A C t l


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Responsibility Responsibility Responsibility

HollandLegal Entity

DenmarkLegal Entity

BelgiumLegal Entity

Functional Tasks Order Management

Dunning, Collections,Billing

Requisition, Demand &Purchase Orders

Receiving & Drop Ship

Invoice Receipt,Disbursement

Customer DataManagement

Accounting Setup

SingleResponsibility

BelgiumOperating Unit

HollandOperating Unit

DenmarkOperating Unit

Perform multiple tasks across operating unitswithout changing responsibilities

MOAC: Multi-Org Access ControlRole based access to Operating Units

Multiple Organization Access Control


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Multiple Organization Access ControlSummary of Changes

Security Profiles for data security MO: Security Profile

List of operating units for a responsibility

Defined in HR

- OU field on UI all transactions setup data specific to OU, like transaction type

Enhanced Multi-Org Reporting and Processing Ledger/Ledger Set parameter on accounting reports and processes

OU parameter on other standard reports and processes For example: submit the Payables Open Interface Import w/OU

param null to import all records across all OUs

Multiple Organization Access Control


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Multiple Organization Access ControlUpgrade Impacts

Multi-Org required in R12 MO is enabled when fresh install in R12

Can have 1 OU

11i customers must enable before upgrade (see Metalink note)

11i Operating Units preserved in R12 If assigned to Set of Books, that association is preserved and

migrated to primary ledger association

Setup streamlined through Accounting Setup Manager

View all OUs associated w/a LE and Ledger

Define new OUs and maintain from this interface

11i Style single org access preserved after upgrade

MOAC Payment Templates


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MOAC, Payment Templates

SelectOUs

Select OUs

MOAC Maintain Period Statuses


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MOAC, Maintain Period Statuses

Select Ledger,and optionally,

OU

MOAC Submit Open Account Balances


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MOAC, Submit Open Account BalancesListing

SelectLedgeror

Ledger Set

MOAC Upgrade Considerations


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MOAC, Upgrade ConsiderationsTransitioning to Multi-Org Access

Possible for all org-aware applications

To take advantage of Multi-Org Access Control

Define security profiles

Assign security profiles to responsibilities w/MO:Security Profile

profile option Optionally set MO: Default Operating Unit

Transition documentation for enabling MOAC in custom

code will be available through Metalink


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g gCentralized Rules, Common Repository: Global Control

Payables Invoice

French RulesPlan ComptableFrench CalendarEUR

Ledger

SubledgerAccounting

Dr Cr

Faster, EasierReconciliation

Corporate Rules =Accounting

Standardization Local Rules =

Improved LocalCompliance

Automate Apples toApples Adjustments

Improved Audit-ability

Improved InternalControl

Some BenefitsAccounting Rules

SarBox & 8th Dir. User Editable

Subledger Daybooks

(Journals) Subledger Balancing Reports, inquiries, open

items, et cetera

MultipleRepresentations

Common Posting to GLLedgers

Real time or Periodic

What it is



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New Subledger Accounting Data Model Common Framework facilitates compliance

Oracle

Non-Oracle

Simultaneously account for a single transaction in multipleways

Accounting Entry Repository and XMLP Reporting

Draft Accounting

Replaces Global Accounting Engine (AX)



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Subledger AccountingSubmission of the Upgrade

1. Pre-Upgrade Determine how much accounting data you need online

Submit for All Ledgers as of a Start Date

2. Downtime Upgrade

Upgrades current fiscal years data

Based on the upgrade date in first half of fiscal year, upgrade will go back to prior fiscal year to

upgrade minimum of 6 periods

in second half of fiscal year, upgrade processes data in all periodsof curreny fiscal year

AP & AX exception: all accounting events, headers and lines areupgraded regardless of the start date

3. SLA Upgrade Historic Subledger Transactions Program

Submit for each Ledger and Period

Not a substitute for downtime upgrade



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Subledger AccountingHow does SLA determine what accounting toperform for a transaction?

SLA looks at the link between the transaction's OU

and the ledgers linked in the GL Accounting Setup

flow. Each ledger has accounting method specified.

Upgraded ledgers have Standard Accrual or Standard

Cash

SLA Uptake by Product


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SLA, Uptake by Product

Uptake Payables

Receivables

Projects

Assets Costing

OPM

Payroll

No Uptake

Treasury, Student Systems, Trade Management

Public Sector/Federal, incl.

Procurement

Property Manager

Loans Cash Management

Globalizations for Latin America

Lease Management (R12 patch)



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Two styles of SLA uptake:1. Complete SLA setup seeded, migrated from 11i

AX

Payables

Costing Loans

2. Hybrid SLA setup

Receivables AutoAccounting + SLA

Assets Workflow Account Generator + SLA

Projects AutoAccounting + SLA

Procurement Workflow Account Generator + SLA



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Upgrade modes No Upgrade: No historical accounting data is upgraded

(Cash Management, Federal/Public Sector, OPM)

Partial upgrade: Some historical data is upgraded

You determine the range of periods when you submit the SLApre-upgrade

SLA Upgrade Historical Subledger Transaction Programs is

available, but not a substitute for the pre-upgrade

(AP, AR, Assets, Costing, Projects)

Full upgrade: All historical accounting data is upgraded to SLA (AX, Loans, Property Manager)

Impact: Accounting Reports, see detailed product pages

SLA Upgrade Impacts


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SLA, Upgrade ImpactsAX

SLA extends the AX functionality and replaces it byproviding customizable accounting rules

Upgrade migrates all existing accounting events,

headers, lines from AX to SLA and migrates setup

from AX to SLA seeded rules. Upgrade migrates posting sets of books to

secondary ledgers in GL

SLA Upgrade Impacts


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SLA, Upgrade ImpactsPayables

SLA replaces the 11i Create Accounting process Most accounting setup migrated to SLA

11i Multi-Period Posting feature migrated to the Deferred

Accounting feature in SLA

11i Future Dated Payments feature migrated to PaymentsBills Payable feature

Exceptions:

Automatic Offsets

Discount method

Optionally define additional accounting rules in SLA

SLA, Upgrade Impacts


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Transaction Upgrade all accounting events, headers and lines upgraded

If AX implemented in a given OU, upgrade migrates AX accountingevents, headers and lines to SLA instead of those in Payables.

payment distributions and prepayment application distributionsare upgraded based on time periods you specify during the

submission of the upgrade

What about transactions outside of the upgrade period?

For example: if you need to adjust a historical payment, unapply aprepayment application, account for invoice tied to non-upgraded po

Message, "This line cannot be accounted until the accountingevent for the application &APPLICATION_NAME that itreferences has been fully accounted."

Submit the SLA Upgrade Historical Subledger Transactions programto update that record

SLA, Upgrade Impacts


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Accounting Reports New Trial Balance

SLA Open Account Balances Listing

Initial liability balances populated by ledger based on

upgrade time periods you specify

SLA Account Analysis

SLA Journal Entries Report



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SLA, Uptake by ProductPayables

Investigate accounting customizations on 11i APaccounting tables

What are they doing?

For example: do you have customizations based on

Project adjustments? PA uptakes SLA in R12 and creates

accounting entries for adjustments rather than using AP to

create those entries as in 11i

Can SLA meet the requirement?

If not, transition to use SLA datamodel



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SLA, Uptake by ProductLoans

All historical accounting data upgraded to SLA All setup migrated from Loans to SLA seeded rules

Except: One accounting setup in Loans that splits by

percentages. Distribution used as SLA source.

Same process as 11i: Submit Create Accounting



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SLA, Uptake by ProductReceivables

Auto Accounting still used and must be set up CCID used as source in SLA

Account derivation rule seeded that uses this source


Accounting Reports combine SLA accounting lines

AR distribution accounting

Transaction Upgrade

Historical transaction data upgraded based on time periodsyou specify during the submission of the upgrade



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SLA, Uptake by ProductReceivables

CCID Correction Form Obsolete Replaced by SLA Draft Accounting

Errors to GL account code combinations can be identified by

draft accounting, and corrections can be made in the

Accounting Methods Builder rules engine.

Investigate Accounting Customizations

If use SLA for additional rules you might need to point your

customizations to SLA datamodel to get all accounting



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SLA, Uptake by ProductAssets

Workflow Account Generation still used CCID used as source in SLA


SLA Post Accounting Programs determine which lines

to send from AP to FA during Create Mass Additions


Accounting Reports

Account Drill Down report replaced by new SLA reportAccount Analysis Report

Accounting Reports run off SLA accounting



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, p yAssets

Transaction Upgrade Books that are disabled are not upgraded

Transactions (Additions, capitalizations, backdated additionsand transfers, retirements, group adjustments):

Historical transaction data upgraded based on time

periods you specify during the submission of the upgrade Depreciation: Accounting for current period depreciation

upgraded only if deprec run and period remains open. (If wantmore run the Upgrade Assets Accounting Data for Subledger

Accounting program after the upgrade.)

Only transactions with seeded source types and adjustmenttypes will get upgraded (none that reference custom lookup

types for journal entries)



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, p yAssets

Process Change Run Create Accounting instead of Create Journal Entries

Run Calc Deferred Deprec and then Create Accounting

instead of Create Deferred Deprec Journal Entries

Profile FA: Include Nonrecoverable Tax in Mass Addition isobsolete; replaced by Post Accounting Programs in SLA

Setup for all eligible lines from AP to Assets for Mass

Additions create done in Post Accounting Programs.

Investigate Accounting Customizations If use SLA for additional rules, you may need to point your

customizations to SLA datamodel to get all accounting



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, p yProjects

AutoAccounting still used and must be set up CCID used as source in SLA





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, p yProcurement

Workflow Account Generator still used and must beset up

SLA used for only for Federal

Budgetary Control and Encumbrance entries

Setup seeded in SLA Encumbrance detail reporting still based on PO Distributions

Optionally use SLA to modify descriptions of

accounting entries

Not recommended to define additional accountingrules in SLA at this time

SLA, Upgrade Considerations


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, pgTransitioning to R12 SLA

You get: Visibility and access to balanced subledger accounting

entries

Centralized repository defining Accounting Rules

Multiple Accounting Representations

Subledger Day Books (Journals) & Balancing Reporting Currencies

You can: Identify opportunities Obsolete complex customizations

Use the power of SLA sources to minimize manual overrides

and plug gaps E.g. Use customer category to drive accounting

E.g. Use supplier type to drive accounting

SLA


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Applications Accounting Definition

SLA


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Define/copy and modifyaccount derivation rules

Setup

JOURNAL ENTRY SETUPS

Define/copy and modifydescriptions

Define/copy and modifyjournal line types

METHODS AND DEFINITIONS

Define/copy and modifyjournal line definitions

Define/copy and modifyapplication accounting

definition

Validate applicationaccounting definition

LEDGER SETUP

Assign subledgeraccounting method to

ledger

Define/copy and modifysubledger accounting

method

Multiple Accounting RepresentationsGlobal Compliance Statutory and Stock Market


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Ledger A

Global Compliance Statutory and Stock Market

SubledgerAccounting

Single subledgertransactioncan create multipleaccountingrepresentationsand in multiplecurrencies

Dr Cr

Payables Invoice

Chose to us analternative Ledger -or just an AdjustmentLedger or segment

or

Multiple Accounting RepresentationsManagement Version in a Management Ledger Set


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Ledger A

Management Version in a Management Ledger Set

SubledgerAccounting

Single subledgertransactioncan create multipleaccountingrepresentationsand in multiplecurrencies

Dr Cr

Payables Invoice

Chose to us analternative Ledger -or just an AdjustmentLedger or segment

IAS/IFRSor USGAAP

Ledger Set

or


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Banks

Banks


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New Banks Data Model


Legal Entity ownership of accounts

Operating Units granted usage rights

Centralized creation and maintenance of Bank Account Balances

R11i Recap

Banks and accounts defined in many areas: AP, Payroll, Treasury

Bank accounts defined at OU level

Redundant setup if OUs used same bank, account

Limited reconciliation flexibility

Banks


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Uptake by product

AP

AR

Payroll

Cash Management Treasury

Exceptions

Human Resources; create employee bank accounts both in HRand Payments (if paying expense reports through AP)

Banks


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Upgrade Impacts

Banks and branches migrated to TCA parties

Banks merged if the following attributes are all the same:

Bank number Institution type

Country

Bank admin email

Bank name alt

Tax payer id (from GDFs)

Tax reference number (from GDFs)

Description

Active date

End date

Banks


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Upgrade Impacts continued

Security & Access

LE: Internal bank accounts owned by LE; LE derived from bankaccounts OU in 11i

OU: OU granted usage rights in Banks UI

User: LE access assigned to users in UMX Bank AccountSecurity Management

Upgrade sets BAM security for each responsibility that had

access to the bank account forms in 11i. An LE is derived

from the OU the responsibility had access to in R11i. Note: MOAC sets access for particular OUs

Reconciliation options at bank account level

Banks


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Upgrade Impacts continued

Treasury

Company bank accounts migrated one to one to new central

model

Subsidiary bank accounts migrated one to one as well, but must

be managed in the Counterparty Profiles form

Counterparties used as banks in 11i (in company or subsidiary

bank accounts) migrated into banks and brances

Banks


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Define Owner of Bank Account

Legal Entity

Banks


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Grant OU Access to Bank Account

Operating Units

Banks


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User Security

Security Wizard

Banks


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User Security

Assign LEs

Banks


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Supplier and Customer Bank Accounts

What about external bank accounts? Party information (Supplier and Banks) migrated into central bank model

(I.e. TCA)

Partys payment information and all payment instruments (bank accounts,

credit cards) moved into Payments

Customers, Students, related GDFs = Payer record, linked to the Party

Suppliers, related GDFs = Payee record, linked to the Party

Improved data security w/central encryption management and masking

control of payment instrument information

Upgrade does not merge payment instruments; upgrade appends OU to

the bank account name and to the Name on Card value, for credit cards

(After upgrade you may want to review these and consolidate into a

single active record.)


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Oracle Payments

Bank Model: Example of what you can doPay invoices from different OUs with 1 instruction


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y

OU A

OU B

OU CBank

SinglePayment

Instruction

Invoices

Payments

Sub LedgerAccounting

New Payments Module

New Bank Module

New Bank & Credit CardFeatures

Oracle Payments


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Summary of Changes

New Payments (IBY) Data Model Common repository for payment data

Funds Capture and Funds Disbursement

TCA party base

Customers Students

Suppliers

Encryption management and masking control of payment

instrument information

Replaces and expands iPayment functionality

Oracle Payments


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Summary of Changes

Formatting and Validation framework:

Oracle XML

Publisher Format

Template

(file format layout)

Oracle Payments

Format(format definition)

Format Validations(validations required by

format specification)

Process Profile(holds all payment

processing rules)

Oracle Payments


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Secure Payment Data Repository

Specify Encryptionand Masking setup

SpecifyEncryption and

Masking Settings

Oracle Payments, Upgrade Impacts


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External Bank Accounts and Credit Cards

Payment Instruments migrated to Payments No longer striped by OU

Upgrade does not merge payment instruments

Naming Conventions:

External Bank Account: Bank Account Name OU,e.g. Citibank Vision Operations, Citibank Vision Services

Credit Cards: Name on Card OU

11i encryption of supplier banks migrated during upgrade

User Interfaces merged into Suppliers, Customers pages

Review and consider consolidating instruments that areshared

Oracle Payments, Uptake by Product


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External bank accounts migrated into Payments

Oracle Payables

Oracle Receivables

Note: Employee bank accounts are still defined both in HR and in

Payments (11i Payables)

Credit card information migrated to the Payments payment card entity Oracle Payables

Oracle Order Capture

Oracle Order Management

Oracle Service Contracts

Oracle Student System

11i payment formats migrated to Payments entities

Oracle Payments, Uptake by Product


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Receivables: Funds Capture Payables: Funds Disbursement

Obsolete in R12:

Profiles and options that controlled credit card brands

Profiles and options that controlled masking on credit cards or bank

accounts

iPayment

AP (including Global) Automatic Payment Programs and Payment Formats

AP Automatic Bank Transmission

AR programs that controlled the formatting of remittances and bills

receivables remittances

Payments, Uptake by ProductPayables


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Payables

Upgrade of 11i payment formats For each AP payment program that is linked to a format

definition, one Oracle XML Publisher template is created andlinked to one Oracle Payments format

For each AP format definition, the upgrade creates onePayment Process Profile linked to the Oracle Paymentsformat

Usage information embedded in 11i setup and paymentformat get migrated to the Payment Process Profile usagerules

internal bank account from which funds will be disbursed

First party LE

Payment Methods

Currencies



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Payables

EDI Payments using Oracle e-Commerce Gateway Setting the value for the Electronic Processing Channel in the

Payment Process Profile setup page controls integration with

Oracle e-Commerce Gateway.

Actual formatting and transmission is performed by Oracle e-

Commerce Gateway.

Future Dated Payments feature migrated to Bills

Payable

setup moved from the payment document on an internal bank

account to the payment method in Oracle Payments Payments Dashboard, new UI within Payables for

submitting and managing the payment process



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Payables

Setup options migrated to Payments 11i Financials Options

Payment Method field to Payment Method DefaultingRules

Pay Alone field to Disbursement System Options, Pay

Each Document Alone field Payables Options

Bank Account field replaced by usage rules on a PaymentProcess Profile

EFT User Number field to Payment System requiredsettings

Payment Batch Limit field to Payment Process Profile,payment instruction creation payment limits region

Payments, Uptake by ProductReceivables


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Receivables

Upgrade of 11i formats For each AR format, one Oracle XML Publisher template is

created and linked to one Oracle Payments format

For each AR format, the upgrade creates one Funds Capture

Process Profile linked to the Oracle Payments format

Globalization formats and features also move to

Oracle Payments

Note that Oracle Receivables retains its existing

features for lockbox processing and the electronic

upload of remittance messages



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Receivables

Payee Configuration Processing options specified here

Typically one setup for the enterprise

Upgrade assigns OUs to the Payee based on existing

transactions in AR

Replaces 11i Receipt Class linked to iPayment Payee

Payee Configuration Routing Rules

Upgrade creates routing rules from each 11i receipt class that

has an automatic creation method

One for each combination of the receipt class remittancemethod, its internal bank account, and the organization

derived from the bank account.



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Receivables

Bank Account Transfers AR Automatic Remittances Creation Program passes

settlements to Oracle Payments

Settlements grouped into settlement batches according torules configured on the Funds Capture Process Profile

Process profile controls the rules for formatting andprocessing the settlement batches

See: Funds Capture Process Manager dashboard

Upgrade creates Global Payment System, Funds CaptureProcess Profile and other setup

Payee linked to OUs that will create source transactions to besettled via bank account transfer (replaces the MerchangeRef field that was set on the Receivables Receipt Classesform in 11i)

Payments, Uptake by ProductiPayment


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iPayment

Upgrade of 11i iPayment formats For each iPayment format, one Oracle XML Publisher

template is created and linked to one Oracle Payments format

For each iPayment format, the upgrade creates one Funds

Capture Process Profile linked to the Oracle Payments format

Migration of formats for the following payment systems

Citibank

Concord

First Data North

Paymentech Easier review and updates


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Oracle Advanced GlobalIntercompany System

Advanced Global Intercompany SystemAddress the Top Barrier to a Fast Close


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Web UI

OpenInterfaces /

API

Excel(Web ADI)

Advanced GlobalIntercompany

System SubledgerInvoices &Documents

Generate subledger invoices

Control transaction entry with

Intercompany Calendar

Fully Configurable Approval Rules

Flexible Security Model

Centrally defined IntercompanyAccounts

OnlineReconciliation

Reporting

XMLPublisherReports

SubledgerAccounting

Dr Cr

GeneralLedger Receivables Payables

Advanced Global Intercompany SystemS mmar of Changes


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Summary of Changes

New Intercompany (FUN) Product and Data Model Debit and credit account pairs

Accounting created in the subledgers

Intercompany accounting

Intracompany balancing Flexible Security

Intercompany trading partners mapped to users insteadof responsibilities

Approval rules managed with Oracle Approval Manager(AME)

Replaces and expands GIS functionality

Advanced Global Intercompany SystemUpgrade Impacts


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Upgrade Impacts

Subsidiaries from GIS migrated to IntercompanyOrganizations

Stored in TCA

A relationship between TCA Intercompany Party and the legal

entity to which it belongs is created

A relationship between customers and suppliers is not

created, you must specify for a given pair of trading partners

Advanced Global Intercompany SystemUpgrade Impacts & Considerations


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Upgrade Impacts & Considerations

Existing intercompany transactions are upgraded intothe new Oracle Advanced Global Intercompany

System data model

Open transactions cannot be upgraded

Transactions, more than one year old, regardless ofstatus will not be upgraded


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Oracle PayablesOracle Receivables

Oracle Assets

Oracle Payables, Upgrade Impacts


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Suppliers are defined as TCA Parties The supplier, supplier site and supplier contacts tables areobsolete and replaced with views that join information fromthe old tables with information in TCA

Country and address line1 required; derived based on OU ifnull

One party site for each distinct supplier site address

Employee suppliers: employee address NOT migrated toparty site in TCA; remains in Oracle HR for data securityreasons.

TCA Party relationships for franchise or subsidiary and its

parent company Note: You cannot search existing TCA party and make it a

supplier



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Lines between invoice header and distributions Goods Services

Associated tax/freight/misc charges

During the upgrade, Oracle Payables creates one invoice line

for every distribution available in the 11i distributions table,except in the case of reversal pairs where Payables createsone line with a zero amount

Note: SLA and eBTax require that Payables invoicedistributions be stored at the maximum level of detail. OraclePayables makes this transformation of existing invoice

distributions during the upgrade. Exchange Rate Variance

Invoice Price Variance



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Global Descriptive Flexfields obsolete Payment migrated to Oracle Payments setup

E.g. bank charge bearer, settlement controls

Tax migrated to regular fields on supplier, invoice

E.g. intended use, fiscal classification, ship-to location

Oracle Receivables, Upgrade Impacts


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Advanced Collections

Replaces Receivables Collections Workbench

Menus automatically redirected (MetaLink Note #389443.1)

Deductions Management

Replaces Trade Accounting

Delivered in partnership between Oracle Receivables, Oracle Trade

Management, and Oracle Credit Management products (MetaLink

Note #370763.1)

Bills Receivable

Replaces Bills of Exchange(MetaLink Note #353280.1) Global Descriptive Flexfields obsolete

Payment migrated to Oracle Payments setup

E.g. bank charge bearer

Oracle Assets, Upgrade Impacts


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Global Descriptive Flexfields for Greece obsolete Commitment and Investment Law migrated to regular fields inAsset Workbench

Interfaced invoice distributions updated with line

number


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Summary

Release 12: The Global Business Release


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MOAC,+300 Features

SLA,Tax

Ledger Sets,Ledgers

XML PublisherReporting

Profitability Mgr,EPB

Subledger

Work Globally,to be more competitive

Think Globally,to make the right decisions

Manage Globally,to lower cost and increase performance

DBI, FCH

Intercompany,Bank, Payments

GeneralLedger

Transactions

OICM

TCA

National ComplianceLocal Regulation

National COALocal Calendar

Corp. ComplianceUS GAAP / IAS-IFRSCorp COACorp Calendar$

Joint ComplianceUS GAAP / IAS-IFRSCorp COACorp CalendarA$+$

Parent ComplianceUS GAAP / IAS-IFRSCorp COACorp Calendar

+$

+

Data ManagementLeveraging centralized data model


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Oracle Fusion Middleware

TradingCommunity

Architecture

ERP CRM 3rd Party

PayablesPurchasingGlobal Tax Payments

Suppliers

Geographies Party

Information

CashManagementBanks and

Branches

For More Information


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Documentation:

Financials Functional Upgrade Impacts


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Deciding to Upgrade

E-Business Suite Release 12


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Best time to improve your competitive position in the

market place is during technology shift. Next generation

applications platform. Fusion. Get it now w/R12.

E-Business Suite Release 121st Major Oracle Applications Release since 11i


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E-Business Suite is the Architectural basis for Fusion

Integrated Business Intelligence TCA with Customers, Suppliers, Students, Legal Entities, Banks

XML Publisher, BPEL

Centralized Accounting and Tax engines

Ledger architecture

Continued Tech Stack Convergence: JTT to OAF First release on Fusion Middleware

Improved User Interface

Better Single Instance Support

Over 300 new financials features & integrations

Easier reconciliation, XML reporting, complex payments, streamlinedasset flow, Advanced Collections

Retek integration, clinical data repository

Deciding to Upgrade


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Cost vs. Benefit Architecture vs. Functionality

Upgrade vs. Reimplementation

EBS vs. Fusion

Deciding to UpgradeCost vs. Benefit; Will it be worth it?


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Huge potential for positive ROI Implement features to ease your current pain points

Get a jump on fusion and be ahead of your competition

Not another 11i

Quality assurance (weve upgraded internally xtimes) Upgrade process improvements

SIP program?

What is the cost of carrying your customizations

forward release after release?

Deciding to UpgradeArchitecture vs. Functionality


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Step toward next generation applications: Fusion Provides the foundation for over 300 new features

You can benefit from: Capture sales and use tax automatically with eBTax

Get Automatic Offsets in AR with SLA

Collect faster with Advanced Collections

Track serial numbers, manufacturers on purchases throughPOAPFA flow with Lines in Payables

Apply cash at the line level in Receivables

Process complex payments in less time than before

Reduce redundant data storage and maintenance

Get the reports you need without complex coding using XMLP

Deciding to UpgradeUpgrade vs. Reimplementation


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Reimplementation is not necessary!

Your 11i implementation will work in R12

Pick and choose the features you want to implement Over 300 to choose from!

Architectural features too:

eBTax for location-based taxes

eBTax for VAT recovery

Build a unique account w/SLA

Where do your employees spend time correcting ormanually processing exception transactions?

Deciding to UpgradeUpgrade vs. Reimplementation


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Analyze your implementation and make newdecisions at your own pace

No time to analyze your customs for obsolescence?

Want to get the bang out of ledger sets? Need ledgers to

share COA and calendar

Implement this change any time after the upgrade

Example: Internal Oracle

R12 is not an all or nothing, now or never scenario

Deciding to UpgradeEBS vs. Fusion


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R12 is not the last stop before Fusion R12 will continue to be enhanced and supported

Step toward next generation applications: Fusion



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Do you want to

Secure your bank and payment instrument data?

Get reports you need faster?

Get tax calculated and reported correctly?

Retire your accounting customizations?

Automate tax decisions? Have fewer payment runs?

Reconcile tax to accounting to transactions more easily?

Track changes to your processes?

Integrate with third party applications? Have happier end users?



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Best time to improve your competitive position in the

market place is during technology shift. Next generation

applications platform. Fusion. Get it now w/R12.


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Q U E S T I O N SA N S W E R S


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The preceding is intended to outline our generalproduct direction. It is intended for information

purposes only, and may not be incorporated into any

contract. It is not a commitment to deliver any

material, code, or functionality, and should not be

relied upon in making purchasing decisions.The development, release, and timing of any

features or functionality described for Oracles

products remains at the sole discretion of Oracle.


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