release 12 financials best practices 1227

8/8/2019 Release 12 Financials Best Practices 1227

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Release 12 Financials Best Practices

Alyssa Johnson

Solution Beacon


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2Copyright 2009 Solution Beacon, LLC All Rights Reserved Any other commercial product names

herein are trademark, registered trademarks or service marks of their respective owners.

Agenda

Global Financial Management

Shared Services Subledger Features and Best Practices

Payables

Assets

Receivables

Cash Management

Subledger Accounting

General Ledger More Information


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Global Financial Management


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Oracles Global Financial Management Model


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Shared Services


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Shared Services

Multi-Org Access Control

Access multiple operating units within a single

application responsibility

Perform tasks for and across multiple operating units

Enter transactions

Process data View information

Run reports

Increase effectiveness of Shared Service Centers


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FRANCE

Operating Unit

USA

Operating Unit

What is Multi-Org Access Control?

USA

Operating Unit

Responsibility Responsibility Responsibility

CANADA

Operating Unit

United States

Legal Entity

Canada

Legal Entity

France

Legal Entity

Responsibility

Release 11i

Release 12

United StatesLedger

Canada

Ledger

France

Ledger

CANADA

Operating Unit

FRANCE

Operating Unit


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8

Copyright 2009 Solution Beacon, LLC All Rights Reserved Any other commercial product names

herein are trademark, registered trademarks or service marks of their respective owners. 8

Multi-Org Best Practices

Customizations which filter data by operating unit must be checked Virtual Private Database (VPD) feature will replace usage of

CLIENT_INFO(Org Context) function in new Multi-Org Architecture Release 11iscript to access specific operating unit data

begindbms_application_info.set_client_info('&org_id');end;

/select * from po_headers/

Release 12 must request access through Security Policy in thedatabase begin

mo_global.set_policy_context('S', &org_id); end;

/select * from po_headers

/


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9




Check programs where concurrent program definition

has been customized, value is null on upgrade andconcurrent program may not run correctly New column MULTI_ORG_CATEGORY add to table

FND_CONCURRENT_PROGRAMS On upgrade, values assigned

S = Single Org M = Multi Org

Example script to set value UPDATE FND_CONCURRENT_PROGRAMS

SET MULTI_ORG_CATEGORY = {'S or M}WHERE CONCURRENT_PROGRAM_NAME = '{ProgramName}'


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10



Upon upgrade, MOAC will not be automatically enabled

Not required to implement MOAC Test bolt-ons, personalizations, customizations and 3rd party

apps with MOAC enabled during upgrade testing

A hybrid environment, where some users operate in

MOAC and others do not, is supported Features unconstrained by multi-org today are still

unaffected in R12 MOAC

MOAC may require additional internal controls or

security Utilize function FNDMOPREFS to give users even more

flexibility in managing their assigned Operating Units



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Subledger Features andBest Practices


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Payables


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13



Payables Invoice Lines

Added between Header and Distribution Line information Improved Asset Tracking (Item Description, Manufacturer,

Model, Serial Number, Warranty Number) Line Level Approval Capability


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14



Payables Invoice Workbench

Invoice Workbench has significant changes

Operating Unit column added

Invoice line required

New button (Discard) for reversing PO matched

invoicesNew tabs for managing invoice lines, holds, viewing

and scheduling payments

Allow adequate training time


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Payables Supplier Maintenance

Notification

from iSupplierportal

Improvedsearch

functionality

Ease ofnavigation

New Supplier Maintenance User Interface

Prior Customizations will have to be addressed

Can also be accessed from Professional Buyers Workbench


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Payables Supplier Maintenance

Ease ofNavigation

SharedServices

Suppliers moved to Trading Community Architecture as

Parties Clean up Suppliers prior to upgrade

Allow adequate training time both for Supplier forms andTCA


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Oracle Payments

Funds Disbursement

Centralized Payment Engine to Manage Funds Captureand Funds Disbursements

Increase Straight Through Processing Rates Better working capital management by providing real-

time visibility to cash inflows and outflows

Efficiently Generate Payments for MultipleOrganizations, Currencies and Regions Single Payment across OUs with same LE Lower Costs associated with Transmission Protocol/

Formats Schema IBY Data repository on top of TCA


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Oracle Payments

Funds Disbursement

Select

Invoices

3

2

1

Selection

Batch

Payment

Build

1

2

3

POOL OFBUILT

PAYMENTS

Payment

Instruction

Creation

Payment

Instructions

Transmit

Payments

PrintPayments

Payables Payments


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19



Oracle Payments

Funds Disbursement

Quick viewgraphicsShortcuts

QuickSearch

ConcurrentRequests


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Oracle Payments

Funds Disbursement

Learn new definitions and process flow

All payment document formats must be in BIPublisher plan accordingly

Utilize templates to expedite processing

Consider straight-through processing

Training, Training, Training


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Payables

Accounting

Run the Invoice Validation program DAILY

Run Create Accounting Process DAILY

Resolve issues reported in SubledgerAccounting Program Report DAILY

When closing period, run Transfer to GLprogram an additional time, to verify allaccounting entries have transferred


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Payables

Period Close and Reconciliation

Start to work any exceptions in Subledger Period

Close Exception Report 5 days before closeUtilize Subledger Control Accounts for liability

accounts to ensure only used by Payables

New Flexfield Qualifier on Natural AccountBecome Familiar with Reconciliation Reports

Open Account Balance Listing (Accounts PayableTrial Balance); Newest version in CPC

R12 Proactive Intelligence Center: OraclePayables MetaLink Doc ID: 578232.1


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Assets


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Assets

Automatic Preparation of Mass Additions

Utilizes Default Rules and/or Public APIs to

prepare mass addition lines automatically Benefits

Avoids customization and manual intervention

Auto populates required fields such as expenseaccount, and asset category


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Assets

Automatic Depreciation Rollback

No Longer Necessary to perform rollback manually

Automatic Depreciation Rollback performed when twocriteria are met:

Period is open

Depreciation has been performed in that period

Performed only on selected assets as required

Benefits

Enhanced Performance

More Efficient Processing of Adjustments


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Assets

Create Journal Entries is replaced by Create Accounting Relocated Setups

Journal Source and Journal Category setup now located in SubledgerAccounting

Intercompany account setup now located in Accounting Setup Manager

Profile Options New - FA: Use Workflow Account Generation. Default is Yes. Workflow

Account Generator functionality could be managed by SubledgerAccounting Rules

Obsolete - FA: Include Nonrecoverable Tax in Mass Addition. Replacedby Post Accounting Programs under Subledger Accounting. Theseprograms manage the setup for all eligible lines from Payables toAssets for the Mass Additions Create program

Invoice distributions from Oracle Payables that interface to Assetsnow display the Invoice Line Number


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Receivables


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Receivables

Customer Maintenance

New Customer Form

Any customizations to 11i form must be addressed

SearchFunctionality


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Receivables

Customer Maintenance

Utilize Best Practices for modeling Customer

Data from Metalink Doc ID: 269124.1When considering a particular company which entities

should be modeled as parties? Which should bemodeled as party sites?

For which of these parties do you need to createaccounts?

Should multiple accounts be created for any of theparties? Should multiple bill-to account sites be

created for any given account?Should any account relationships be created?


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Receivables

Revenue Recognition

Revenue Recognition based on

Time Proportionally over Time

Upon Expiration of Contingencies

Events Payment Customer Acceptance

Rules

Payment Term Thresholds Refund Policy Thresholds

Customer Creditworthiness


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Receivables

Direct Refund Generation

Apply ToRefund

Electronic

Credit Memo

Generates

Payables RefundRequest

Refund AttributesButton


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Receivables

Line Level Cash Application

Receipts can be

applied at linelevel

More accurate

representation

Application Form

Select Receipt

Select Apply inDetail


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Oracle Payments

Funds Capture

Payments integrates with the following products

to facilitate Funds Capture

- Service

- Service Contracts

- Lease Management

- Receivables

- Student System

- Collections

- iReceivables

- iStore

- Order Capture

- Order Management


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Oracle Payments

Funds Capture

SOURCESOURCE

PRODUCTPRODUCT

Create TransactionCreate Transaction

RequestRequest

AuthorizationAuthorization

Payment Attributes andPayment Attributes and

Authorization for FutureAuthorization for Future

SettlementsSettlements

RECEIVABLESRECEIVABLES

Request forRequest for

settlementsettlement

AuthorizesAuthorizesfundsfunds

THIRD PARTYTHIRD PARTY

PAYMENTPAYMENT

SYSTEMSYSTEMSends requestSends request

for settlementfor settlement

PAYMENTSPAYMENTS

AcknowledgementAcknowledgement

ResultsResults

NotificationNotification

11

33

AcknowledgementAcknowledgement

22


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Receivables

Balance Forward Billing

Release 11i Consolidated Billing becomes

Release 12 Balance Forward Billing More Flexible Billing Cycles

Consolidation of invoices at site or account level

Generate Balance Forward Bills using BillPresentment Architecture


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Receivables

Receivables Collections Workbench is a subset

of Advanced Collections moduleCheck MetaLink Doc ID: 389443.1, Appendix C

for Advanced Collections features available for

use in the Receivables Collections WorkbenchUtilize Subledger Control Accounts for liability

accounts to ensure only used by Receivables

New Flexfield Qualifier


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Receivables

Use parallel processing functionality to reduce

processing time on large volumes of dataAutomatic Receipts Creation Program (API)

Automatic Remittances Creation Program (API)

Revenue Recognition Master ProgramLate Charges program

Submit Accounting Program


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Receivables

Close and Reconciliation

Run Submit Accounting Program DAILY and resolve anyissues in accounting

Submit Accounting runs both Revenue Recognition

Create Accounting

Utilize Unposted Items Report to identify issues

Reconciliation AR Reconciliation Report (other reports if discrepancies)

Potential Reconciling Items Report

Run Aging and compare with Reconciliation Report Run Journal Entries report and compare with Reconciliation

Run AR to GL Reconciliation Report


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Cash Management


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Cash Management

TreasuryTreasury

PayablesPayables

ReceivablesReceivables

PayrollPayroll

Cash MgmtCash Mgmt

PayablesBank

Accounts

PayablesBank

Accounts

PayrollBank

Accounts

Payroll

BankAccounts

Treasury

BankAccounts

Treasury

BankAccounts

Release11i

Cash MgmtCash Mgmt

BanksBanks

TCATCA

Bank

Accounts

Bank

AccountsTreasuryTreasury

PayablesPayables

ReceivablesReceivables

PayrollPayroll

Release 12


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Cash Management

Update Bank, Branch,and Account in one

location

Single User Interface

Bank Account owned by Legal Entity instead of OU

Bank/Branches are TCA Parties


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Cash Management Bank Accounts

Manage Payment Documents from Bank Accounts form


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Cash Management

Verify cash clearing and cash accounts are defined at

the bank accounts control level


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Setting up the General Ledger


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Setting up the General Ledger

Best Practices

Make every effort to model your business processesto take full advantage of the new R12 architectureand flow

Requires review of business processes

Familiarize yourself with the new R12 features

Design of Accounting Structure is Key

Run the Accounting Setup Manager Pre-Update

Diagnosis Report to identify setups that arepotentially problematic


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Setting up General Ledger

Set of Books is now referred to as Ledger

Accounting StructureChart of Accounts

Calendar

Currency

Subledger Accounting Convention (New in R12)

Legal EntityReflects legal corporate structure

Utilized by Accounting Functions, E-Business Tax,Intercompany, and Bank Account


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Primary Ledgers Legal Entities are associated with Primary Ledgers

Primary Ledgers typically reflect your transactional accounting Primary Ledgers not associated with a Legal Entity can be used

for consolidation

Secondary Ledgers

Secondary Ledgers can be utilized for statutory, management,and/or consolidation reporting Mapping from Primary to Secondary Ledger(s) is defined in

General Ledger and is assigned in the Accounting SetupManager

When accounting is created, journal entries aregenerated for the Primary Ledger and any associatedSecondary Ledgers based on the defined mapping rules



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Ledger Sets

All Ledgers in a Ledger Set must have the sameCalendar and Chart of Accounts

Can Open/Close Periods, Create Journals, TranslateBalances, Reporting, and View Information across a

Ledger SetImproves Data Security, Reliability, and Consistency

On upgrade, each Set of Books becomes aLedger and a Ledger Set composed of oneLedger


Setting Up General Ledger


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Examples

Ledger: Orig CoGlobal CoA

Calendar Year

USD

Ledger: Acq CoAcquisition CoA

Acquisition Calendar

Acquisition Currency

Ledger: Acq CON

Global CoA

Calendar Year

USD

Ledger: Acquisition

Statutory

Statutory CoA

Fiscal CalendarCurrency

PrimaryLedgers

Secondary

Ledgers

Secondary

Ledger

Consolidation Ledger Set

Ledger:

ConsolidationCons CoA

Cons Calendar

Cons Currency

Entries created by GL

Transfer and Elimination

Process

Use Secondary Ledgers and Ledger Sets for Consolidated Reportingto

prevent the need to perform balance transfer consolidations every period, andto obtain a cross-company view of your organizationNote: This does not replace the consolidation process



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herein are trademark, registered trademarks or service marks of their respective owners.65

The FR Statutory Secondary Ledger contains entries which comply withstatutory regulations

Ledger: US

Global CoACalendar Year

USD

Ledger: UK

UK CoACalendar Year

GBP

Ledger: FR

FR CoACalendar Year

EUR

Ledger: UK CON

Global CoA

Calendar Year

USD

Ledger: FR CON

Global CoA

Calendar Year

USD

Ledger: FR Statutory

Statutory CoA

Fiscal Calendar

EUR

PrimaryLedgers

Secondary

Ledgers

Secondary

Ledger

Consolidation Ledger Set


Examples


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Time spent on

design will notbe wasted


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Rule-based accounting engine with a centralized

data model and repository (XLA) Generates and stores detailed accounting

entries

User-defined Accounting Rules A single transaction can be represented in

multiple ledgers

Drilldown capability from GL


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GENERAL LEDGER

Primary Ledger

Secondary Ledger(s)

Subledger Accounting (SLA)

Subledgers

Accounting


Drilldown to Subledger

Accounting Details

Drilldown to

Transaction Details

S


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Standardization in

NavigationAccounting

Inquiry

Reporting Setup

Accounting Setup Manager

Accounting Methods Builder


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g g


Use Validate Application Accounting Definition

Concurrent Program if Oracle owned AAD notvalidated

Continue to use Account Generators on upgrade

Transition account generation to SubledgerAccounting Engine post-upgrade

User-defined AADs retained in upgrade



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g g

Create Accounting

Run Create Accounting Process DAILY

Utilize Draft Mode Accounting if continual issueswith accounting

Resolve issues reported in Subledger

Accounting Program Report DAILYWhen closing period run Transfer to GL program

an additional time, to verify all accounting entries

have transferred



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g g

Accounting Entry Inquiry

Journal

Entry Status

Drilldown

Draft ModeEntries Can Be

Deleted

Create ManualJournal Entries



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Users can view boththe Journal Entry

and the TransactionInformation together



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Drilldown from General Ledger to Subledger

Transaction goes through Subledger AccountingRepository

Learn to utilize the Subledger Journal Entry

formsPersonalization



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Web ADI and Manual Journal Entries

NOT processed by Subledger Accounting Engine

Posted to Secondary Ledger(s) by General Ledger PostingProgram

Are included in Account Analysis Report

Journals can be corrected at the Transaction, SLA, orGL Journal Entry level

Choose a method and make that the standard for all corrections

Since detail is retained in Subledger Accounting posting

to GL in Summary instead of Detail can be performed


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Reconciliation Reports


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Reconciliation Reports

Changes in standard Oracle reports mightaffect customizations

Transactional ReportsR11i based on Transactions and Distributions

R12 based on Transactions ONLY

Accounting ReportsR11i based on Balancing Lines, GL Journals, GL

Balances

R12 based on SLA Journals, GL Journals, GLBalances


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General Ledger

New Features

General LedgerAlt t A t


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Alternate Accounts

Note:

scrollbar

Define alternate accounts if account is

disabled Increased efficiency

General LedgerDefinition Access Sets


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Definition Access Sets

Used in General Ledger only to secure access todefinitions and setup components

One or more privileges can be given to aresponsibilityUse

Modify

View

Secures Definitions separate from Data

More Flexibility, Reduction of Errors, GreaterControl

General LedgerDefinition Access Sets


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Definition Access Sets

Definitions secured with Definition Access Sets

Accounting Calendars

AutoAllocations

AutoPost Criteria Sets

Budget Formulas

Budget Organizations

Chart of Account Mappings

Consolidation Definitions

Consolidation Sets

Elimination Sets

FSG Reports andcomponents

Mass Allocations

Mass Budgets

Rate Types

Recurring Journals

Revaluations

Transaction Calendars

General Ledger Journal Copy


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Journal Entry Form Journal Form

Assign new batch name, period, and effective date

Copy Journals with any status Increased efficiency, data integrity


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Additional Tools

BI Publisher


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BI Publisher


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Utilized across entire E-Business Suite

Over 850 templates across 55 products Remaining Standard reports migrated to BI

Publisher in 12.1

BI Publisher report development is a new skillset which should be mastered as soon aspossible

Integration Repository


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Browsethrough tree

structure

SearchFunctionalityAll types of

interfaces

Drilldown to

interfacedetails

Describes all Oracle interface endpoints


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More Information


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93

Release 12 Online Documentation

Oracle Financials Concepts Guide (B28873-01)

Oracle Applications Upgrade Guide: Release 11i to Release 12(B31566-01)

Oracle Financials and Oracle Procurement Functional UpgradeGuide: Release 11i to Release 12 (B31543-01)

Metalink Doc ID 580299.1 Best Practices for AdoptingOracle E-Business Suite Release 12

Release 12 Information Center

Knowledge Tab of My Oracle Support

Solution Beacon Toolkit


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www.solutionbeacon.com

Checklists

Pocket Guides

Presentations

Vision Instance Java Installed

Disable pop-up blocking

Valid Oracle CustomerSupport Identifier (CSI)

12.1.1 Now Available

Ranked ScorecardFree Consultation


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How Does The Scorecard Work

Answer multiple-choice

questions Identify areas of risk (business

and IT)

Ranked score helps measure

your status on issues Provides recommendations for

next steps

Feedback on issues that

concern steering committeesand ROI

Scorecard Focus Areas

Competitive Optimization

Functional and Process Issues

Project Approach andComplex Issues

Workflow Issues

Customization Reduction

Database

Data Integrity

System Optimization

Business Intelligence

Questions and Answers


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Thank You!

Alyssa Johnson

[email protected]

www.solutionbeacon.com

Real Solutions for the Real World