ebs financials globalization oracle

Jacques Bouchet

Applications Global Strategy

Oracle Financials Globalization

E-Business Suite Release 12.1 and beyond

The World is Changing Like Never Before

80 000

100 000

120 000

$ B

illio

ns (

2004

Rea

l Val

ues)

G7 E7

Relative Size of G7 and E7 Economies

The E7 will be 25% larger than the G7 by 2050 in terms of market exchange

rate (MER), or 75% larger in terms of purchasing power parity (PPP).

BUSINESS IMPLICATIONS

Companies must compete in

local markets with localized

solutions.

• Statutory financial reporting

0

20 000

40 000

60 000

$ B

illio

ns (

2004

Rea

l Val

ues)

2005

MER

2050

MER

2005

PPP

2050

PPP

PriceWaterhouseCoopers, “The World in 2050”

• Statutory financial reporting

• Local tax

• Local valuation and costing

• Local accounting

• Local statutory reporting

• Local payments

National and International Laws & Regulations

Actions by Competitors

Changing Customer Requirements

Industry Standards and Regulations

Tax Codes

11

Doing Business Globally is ComplexTop Drivers of Complexity

22

33

44

55

Globalization is unstoppable. Regardless of geography, industry or income, companies are globalizing to gain new customers and access new markets. Is this a good thing? Nearly Tax Codes

Changing Workforce Attitudes

International Reporting Standards

Language and Cultural Differences

55

66

77

88

Direct impact on Finance

Source: PWC, 9th Annual Global CEO Survey

markets. Is this a good thing? Nearly two-thirds of the CEOs we surveyed

are positive about the impact that globalization will have on their

organizations over the next three years.

Source: 9th Annual Global CEO Survey –

Globalization and Complexity; PwC 2006

GLOBALIZATION

…Today’s workforce,

customers, suppliers, and

competitors have all become

global

COMPLEXITY AND COSTS

… Globalization brings

complexity with it, and

unnecessary complexity

drives up costs

Today’s CFO Agenda

INNOVATION AND GROWTH

… Not just any growth, but

growth that creates value

GOVERNANCE, RISK &

COMPLIANCE

…Companies are under

pressure to do more than

just meet the letter of the

law

Meet the Challenges of Globalization Oracle’s Globalization Solution

Solution

Extend core

business

processes and

international

support

Manage business

systems globally

• Standards-based business platform

•Native global platform

• Extensible Business Objects

•Global financial engines

Oracle

CapabilitiesRequirement

Ensure compliance

and adapt quickly to

regulatory change

Drive compliant

business processes

•Global financial engines

• eBTax

•BI Publisher

• Subledger Accounting

• Payment Engine

Comply with

local business

practices, rules,

and regulations

• Localizations

• Translations

•User-definable options

Deploy country-

specific capabilities

<Insert Picture Here>

Release Twelve

The Global Business Release:

A New Financial Architecture

Global Business Release

LocalizationsLocalizations

Oracle’s Globalization SolutionOracle’s Globalization Solution

• Localizations: Comply with local business

practices, rules, and regulations

• Applications: Deliver best practice business

processes

ApplicationsApplications

Financial Financial ManagementManagement

Human Capital Human Capital ManagementManagement

Supply Chain Supply Chain ManagementManagement

……

• Global Architecture: Adapt quickly to changing

global requirements

• Global Platform: Extend core business processes and international support

Global ArchitectureGlobal Architecture

SubledgerSubledgerAccountingAccounting

Tax Tax EngineEngine

Legal Legal Entities Entities LedgersLedgers

Payments Payments EngineEngine

Multi Org Multi Org AccessAccess

Inter Inter CompanyCompany

Global PlatformGlobal Platform

Common Information ModelCommon Information Model

Data Data FormatsFormats

LanguagesLanguagesBI BI

PublisherPublisherSOASOA AIAAIA

Localizations Delivery Model

ApplicationsApplications

LocalizationsLocalizations

Financial Financial ManagementManagement

Human Capital Human Capital ManagementManagement

Supply Chain Supply Chain ManagementManagement

Oracle’s Globalization SolutionOracle’s Globalization Solution

……

Product Localizations *

Delivered in product, by Development organization

Add-on Localizations *

Global ArchitectureGlobal Architecture

Accounting Accounting EngineEngine

Bank Bank ModelModel

LedgersLedgersPayments Payments EngineEngine

Tax Tax EngineEngine

MDMMDM

Global PlatformGlobal Platform

Common Information ModelCommon Information Model

Data Data FormatsFormats

LanguagesLanguages ReportingReporting SOASOA AIAAIA

Delivered via Metalink, by Regional Field Centers

Partner Localizations

Delivered by Partners

* Included in standard product license

Global Architecture Overview

• This presentation: focused on

• Architecture Content

• Localization coverage

• Not covering:

• Over 300 new features in Release 12.0• Over 300 new features in Release 12.0

• Additional 270 features in Release 12.1

• 9 new products in Release 12.1

• Analytics

• Fusion Middleware

Global Financial Architecture

Tax Tax Tax Tax Tax Tax Tax Tax InterInterInterInterInterInterInterInter

General Ledger General Ledger General Ledger General Ledger General Ledger General Ledger General Ledger General Ledger Ledger & Ledger Sets Ledger & Ledger Sets Ledger & Ledger Sets Ledger & Ledger Sets Ledger & Ledger Sets Ledger & Ledger Sets Ledger & Ledger Sets Ledger & Ledger Sets General Ledger General Ledger General Ledger General Ledger General Ledger General Ledger General Ledger General Ledger Ledger & Ledger Sets Ledger & Ledger Sets Ledger & Ledger Sets Ledger & Ledger Sets Ledger & Ledger Sets Ledger & Ledger Sets Ledger & Ledger Sets Ledger & Ledger Sets

Subledger Accounting (SLA) Subledger Accounting (SLA) Subledger Accounting (SLA) Subledger Accounting (SLA) Subledger Accounting (SLA) Subledger Accounting (SLA) Subledger Accounting (SLA) Subledger Accounting (SLA) Subledger Accounting (SLA) Subledger Accounting (SLA) Subledger Accounting (SLA) Subledger Accounting (SLA) Subledger Accounting (SLA) Subledger Accounting (SLA) Subledger Accounting (SLA) Subledger Accounting (SLA) DrDrDrDrDrDrDrDr CrCrCrCrCrCrCrCr

7 Major Initiatives

1. Legal Entities Ledger and Ledger Sets

2. Subledger Accounting

3. Tax EngineBankBankBankBankBankBankBankBankModelModelModelModelModelModelModelModel

Tax Tax Tax Tax Tax Tax Tax Tax EngineEngineEngineEngineEngineEngineEngineEngine

InterInterInterInterInterInterInterInterCompanyCompanyCompanyCompanyCompanyCompanyCompanyCompany

ProjectsProjectsReceivablesReceivablesInventoryInventory

Work in ProcessWork in Process PurchasingPurchasing PayablesPayables

MultiMultiMultiMultiMultiMultiMultiMulti--------OrgOrgOrgOrgOrgOrgOrgOrgAccessAccessAccessAccessAccessAccessAccessAccessControlControlControlControlControlControlControlControl


3. Tax Engine

4. Intercompany

5. Bank Model

6. Multi-Org Access Control

7. BI Publisher


Legal Entities

Legal Entity: Your Registered Companies

Holding

Company

Beijing Oracle

Software system

OARDC

Beijing

Shanghai Office

(Registered Branch)

OARDC

Shanghai team

Hangzhou Office

(Registered Branch)

Guangzhou Office

(Registered Branch)

Legal Entities

Registered Branches

Locations

LEs: Why and What?

• LEs pay the taxes - need tax registrations

• Trade between LEsneeds intercompany

Why We Care

• Addresses, Officers, etc.

• Enabled First Party stamp

• Added Establishments:

What we’ve done

• LEs own the moneyand bank accounts

• LEs file the accounts, take care of accounting

• LEs comply with whatever needscompliance: “legal” in LE

• Added Establishments:map Registrations to Authorities

• GRE/LE not touched

• Authorities as TCA parties

• LE Configurator

Where LE fits in…

Files

Transaction Taxes -

Complies &Files, Pays

Actual RegisteredCompanies, etc.

Et Cetera, 11iMaintains

its Subledger

Documents

in many OUs

LegalEntity

BusinessGroup

GRE/LE

OperatingUnits

Registrationswith Authorities in many OUs

Default Legal

Context (DLC)

Entity

Accounts

for itself

in a Ledger

or BSVs

Ledger

Unitswith Authorities

Files

Establishments

Registrationswith Authorities

ExistsLocallyExistsLocally

Legal Entity:

Vehicle for compliance

Legal Entity:


Transaction Taxes -

Complies &Files, Pays

Actual RegisteredCompanies, etc.

Et Cetera, 11iMaintains

its Subledger

Documents

in many OUs

Maintains

its Subledger

Documents

in many OUs

LegalEntity

BusinessGroup

GRE/LE

OperatingUnits


Files Files

Get the LE right - compliance falls into place

Let’s put LEs to work

• Isolate legal compliance from management needs

• Track your registered companies

• Make your compliance flow more easily

Accounting Setup ManagerAssign books, bookkeeping rules and currency management

to your registered companies in many OUs

Default Legal

Context (DLC)

in many OUs

Default Legal

Context (DLC)Accounts

for itself

in a Ledger

or BSVs

Accounts

for itself

in a Ledger

or BSVs

Entity

Ledger

Unitswith Authorities

FilesFiles

Establishments


ExistsLocallyExistsLocally

Legal Entity:


Legal Entity:


to your registered companies

EBusiness TaxHave your registered companies calculate, file, and pay the

transaction taxes they owe

IntercompanyDo business between and across your registered companies

with full legal documentation

Bank ModelHave your registered companies use their money to pay

their bills, et cetera


Ledger Sets

Ledger Sets Global Information At A Glance

Ledger SetLedger SetLedger SetLedger SetLedger SetLedger SetLedger SetLedger Set

US GAAPUS GAAPUS GAAPUS GAAPUS COAUS COAUS COAUS COAUS CalendarUS CalendarUS CalendarUS CalendarUSDUSDUSDUSD

Ledger CLedger CLedger CLedger CLedger CLedger CLedger CLedger CLedger CLedger CLedger CLedger CLedger CLedger CLedger CLedger C

US GAAPUS GAAPUS GAAPUS GAAPUS COAUS COAUS COAUS COA

Ledger BLedger BLedger BLedger BLedger BLedger BLedger BLedger B

French RulesFrench RulesFrench RulesFrench RulesPlan ComptablePlan ComptablePlan ComptablePlan Comptable

Ledger ALedger ALedger ALedger ALedger ALedger ALedger ALedger A

Share:Share:Share:Share:Share:Share:Share:Share:CCCCCCCChart of Accountshart of Accountshart of Accountshart of Accountshart of Accountshart of Accountshart of Accountshart of AccountsCCCCCCCCalendaralendaralendaralendaralendaralendaralendaralendar

Share:Share:Share:Share:Share:Share:Share:Share:CCCCCCCChart of Accountshart of Accountshart of Accountshart of Accountshart of Accountshart of Accountshart of Accountshart of AccountsCCCCCCCCalendaralendaralendaralendaralendaralendaralendaralendar

Key benefits to many Ledgers in one setKey benefits to many Ledgers in one setKey benefits to many Ledgers in one setKey benefits to many Ledgers in one set• DecisionDecisionDecisionDecision----driving business information always availabledriving business information always availabledriving business information always availabledriving business information always available• Simpler processing and General Ledger managementSimpler processing and General Ledger managementSimpler processing and General Ledger managementSimpler processing and General Ledger management• Data and definitions that can be shared and securedData and definitions that can be shared and securedData and definitions that can be shared and securedData and definitions that can be shared and secured

US COAUS COAUS COAUS COAUS CalendarUS CalendarUS CalendarUS CalendarEUREUREUREUR

Plan ComptablePlan ComptablePlan ComptablePlan ComptableFrench CalendarFrench CalendarFrench CalendarFrench CalendarEUREUREUREUR Ledger DLedger DLedger DLedger DLedger DLedger DLedger DLedger DLedger DLedger DLedger DLedger DLedger DLedger DLedger DLedger D

Reporting CurrencyReporting CurrencyReporting CurrencyReporting Currency

US GAAPUS GAAPUS GAAPUS GAAPUS COAUS COAUS COAUS COAUS CalendarUS CalendarUS CalendarUS CalendarAUDAUDAUDAUD

Currency in Twelve

• Transaction Currencies

• Accounting Currency in Primary Ledger

• Reporting Currency in Primary Ledger

• More Accounting Currencies in Secondary Ledgers• For every transaction OR

• For SLA Posting level / GL activity level • For SLA Posting level / GL activity level

• Balance level Translation or Remeasurement in Ledgers – within Ledger sets, run at one click

• Balance & Activity level Translation or Remeasurement in Financial Consolidation Hub

• Enhanced Revaluation• [Functional Currency term dropped: conflicts with IAS 21 / FAS 52]

Ledger Sets – Work them your way

Corporate

Ledger Set

adjustments eliminations

UK Ledger Set

US Ledger Set

Legal Ledger

UK1Legal Ledger

UK2Adj LedgerAdjustment

Adjustment

Ledger US

Legal Ledger

US1

Legal Ledger

US3

Legal Ledger

US2

Management

Ledger SetManagement

Ledger Set

UK1 UK2Adj Ledger

Corporate

Adjustment

Ledger UK

• Automate GAAP / IAS adjustments in an adjusting ledger

• Eliminate within a Set with GCS

• Consolidate Formally in FCH

• Map from a non-conforming COA with a GCS Ledger

• Automate GAAP / IAS adjustments in an adjusting ledger

• Eliminate within a Set with GCS

• Consolidate Formally in FCH

• Map from a non-conforming COA with a GCS Ledger

• Set of 26 Ledgers in one country

• Euro Zone in One Ledger Set

• My Corporate Set in US GAAP

• Statutory Set for Country Y Subs

• Division X Worldwide Ledger Set

• Set of 26 Ledgers in one country

• Euro Zone in One Ledger Set

• My Corporate Set in US GAAP

• Statutory Set for Country Y Subs

• Division X Worldwide Ledger Set

• Data Access Sets

• Grant and tailor access to Ledgers and Balancing Segment

Values (i.e. Companies, Stores, Branches, etc.)

Data Access, Definition Access

Accountant

Privileges

GL Manager

View Write

Accountant

France LedgerFrance Ledger

Canada LedgerCanada Ledger

US LedgerUS Ledger

• Definition Access Sets – separate from data security

• Share, restrict definitions; privileges to view, modify, etc.


SubLedger Accounting

Define Legal Entities& Associated Rules

Ensure Complete & Accurate

Setup via Online Checklist

Centralized Set-upAccounting Setup Manager

Define Multiple Ledgersfor Rules & Currencies

One Place to manageOne Place to manageOne Place to manageOne Place to manageYour Global AccountingYour Global AccountingYour Global AccountingYour Global Accounting

Rules, Currencies,Rules, Currencies,Rules, Currencies,Rules, Currencies,Ledgers,Ledgers,Ledgers,Ledgers,

And Ledger Sets And Ledger Sets And Ledger Sets And Ledger Sets Set Accounting Rulesfor All EBS Apps

Setup via Online Checklist

3333rdrdrdrd Party Party Party Party SystemsSystemsSystemsSystems3333rdrdrdrd Party Party Party Party SystemsSystemsSystemsSystems

Centralized Accounting PoliciesGreater Control, Transparency and Auditability

• 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 repositoryCentralized Accounting Model, Centralized Accounting Model, Centralized Accounting Model, Centralized Accounting Model, Centralized Accounting Model, Centralized Accounting Model, Centralized Accounting Model, Centralized Accounting Model, Rules, Engine and RepositoryRules, Engine and RepositoryRules, Engine and RepositoryRules, Engine and RepositoryRules, Engine and RepositoryRules, Engine and RepositoryRules, Engine and RepositoryRules, Engine and RepositoryCentralized Accounting Model, Centralized Accounting Model, Centralized Accounting Model, Centralized Accounting Model, Centralized Accounting Model, Centralized Accounting Model, Centralized Accounting Model, Centralized Accounting Model, Rules, Engine and RepositoryRules, Engine and RepositoryRules, Engine and RepositoryRules, Engine and RepositoryRules, Engine and RepositoryRules, Engine and RepositoryRules, Engine and RepositoryRules, Engine and Repository

DrDrDrDrDrDrDrDr CrCrCrCrCrCrCrCr

General Ledger General Ledger General Ledger General Ledger General Ledger General Ledger General Ledger General Ledger General Ledger General Ledger General Ledger General Ledger General Ledger General Ledger General Ledger General Ledger

ProjectsProjectsProjectsProjectsProjectsProjectsProjectsProjectsProjectsProjectsProjectsProjectsProjectsProjectsProjectsProjectsReceivablesReceivablesReceivablesReceivablesReceivablesReceivablesReceivablesReceivablesReceivablesReceivablesReceivablesReceivablesReceivablesReceivablesReceivablesReceivables

PayablesPayablesPayablesPayablesPayablesPayablesPayablesPayablesPayablesPayablesPayablesPayablesPayablesPayablesPayablesPayables

InventoryInventoryInventoryInventoryInventoryInventoryInventoryInventoryInventoryInventoryInventoryInventoryInventoryInventoryInventoryInventory

3333rdrdrdrd Party Party Party Party SystemsSystemsSystemsSystems3333rdrdrdrd Party Party Party Party SystemsSystemsSystemsSystems

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

Rules, Engine and RepositoryRules, Engine and RepositoryRules, Engine and RepositoryRules, Engine and RepositoryRules, Engine and RepositoryRules, Engine and RepositoryRules, Engine and RepositoryRules, Engine and RepositoryRules, Engine and RepositoryRules, Engine and RepositoryRules, Engine and RepositoryRules, Engine and RepositoryRules, Engine and RepositoryRules, Engine and RepositoryRules, Engine and RepositoryRules, Engine and Repository

Work in ProcessWork in ProcessWork in ProcessWork in ProcessWork in ProcessWork in ProcessWork in ProcessWork in ProcessWork in ProcessWork in ProcessWork in ProcessWork in ProcessWork in ProcessWork in ProcessWork in ProcessWork in Process PurchasingPurchasingPurchasingPurchasingPurchasingPurchasingPurchasingPurchasingPurchasingPurchasingPurchasingPurchasingPurchasingPurchasingPurchasingPurchasing

Subledger AccountingCentralized Rules, Common Repository: Global Control

French RulesFrench RulesFrench RulesFrench RulesPlan ComptablePlan ComptablePlan ComptablePlan ComptableFrench CalendarFrench CalendarFrench CalendarFrench CalendarEUREUREUREUR

LedgerLedgerLedgerLedger

• Faster, Easier Reconciliation

• Corporate Rules = Accounting Standardization

•

Some Benefits

• Accounting Rules

• SarBox & 8th Dir.

• User Editable

• Subledger Daybooks (Journals)

What it is

Payables InvoicePayables InvoicePayables InvoicePayables InvoicePayables InvoicePayables InvoicePayables InvoicePayables Invoice

SubledgerSubledgerSubledgerSubledgerAccountingAccountingAccountingAccountingSubledgerSubledgerSubledgerSubledgerAccountingAccountingAccountingAccounting

DrDrDrDr CrCrCrCr• Local Rules =

Improved Local Compliance

• Automate “Apples to Apples” Adjustments

• Improved Audit-ability

• Improved Internal Control

(Journals)

• Subledger Balancing

• Reports, inquiries, open items, et cetera

• Multiple Representations

• Common Posting to GL Ledgers

• Real time or Periodic

Subledger AccountingTransaction Level Compliance

• National Daily Journal Requirements

• Internal Control: Central Definitions, Eliminate overrides

• Policy Enforcement in Volume Processing

• Transparent Accounting Rules

• Debits & Credit at the point of the event

• Automate Foreign Operation adjustments

Event Class: Event Class: Event Class: Event Class: InvoicesEvent: Event: Event: Event: Invoice Approved Ledger: Ledger: Ledger: Ledger: France (EUR)GL Date:GL Date:GL Date:GL Date: 20-Sep-2005Description: Description: Description: Description: Office supplies TypeTypeTypeType Account DescriptionAccount DescriptionAccount DescriptionAccount Description DebitDebitDebitDebit CreditCreditCreditCredit

Asset purchase 01.9100010.100 Paris: furniture 10,000Misc expense 01.9100020.100 Paris: supplies 400Misc expense 01.9100020.200 Nantes: supplies 100Misc expense 01.9100020.300 Nice: supplies 300VAT 01.3100060.000 VAT@17% 1,836Accounts Payable 01.7000010.000 ABC Supplies 12,636

12,63612,63612,63612,636 12,63612,63612,63612,636

• Automate Foreign Operation adjustments

• Reconciliation

Platform

• “In accordance

with the

Underlying

Records”

US GAAPUS GAAPUS GAAPUS GAAPUS GAAPUS GAAPUS GAAPUS GAAPUS COAUS COAUS COAUS COAUS COAUS COAUS COAUS COAUS CalendarUS CalendarUS CalendarUS CalendarUS CalendarUS CalendarUS CalendarUS CalendarEUREUREUREUREUREUREUREUR

Ledger BLedger BLedger BLedger BLedger BLedger BLedger BLedger BFrench RulesFrench RulesFrench RulesFrench RulesFrench RulesFrench RulesFrench RulesFrench RulesPlan ComptablePlan ComptablePlan ComptablePlan ComptablePlan ComptablePlan ComptablePlan ComptablePlan ComptableFrench CalendarFrench CalendarFrench CalendarFrench CalendarFrench CalendarFrench CalendarFrench CalendarFrench CalendarEUREUREUREUREUREUREUREUR

Ledger ALedger ALedger ALedger ALedger ALedger ALedger ALedger A

Multiple Accounting RepresentationsGlobal Compliance – Statutory and Stock Market


or

Multiple LedgersMultiple LedgersMultiple LedgersMultiple LedgersMultiple LedgersMultiple LedgersMultiple LedgersMultiple Ledgers

Subledger Subledger Subledger Subledger Subledger Subledger Subledger Subledger AccountingAccountingAccountingAccountingAccountingAccountingAccountingAccountingSubledger Subledger Subledger Subledger Subledger Subledger Subledger Subledger AccountingAccountingAccountingAccountingAccountingAccountingAccountingAccounting

Single subledger Single subledger Single subledger Single subledger Single subledger Single subledger Single subledger Single subledger transactiontransactiontransactiontransaction

can create multiplecan create multiplecan create multiplecan create multipleaccounting accounting accounting accounting

representationsrepresentationsrepresentationsrepresentationsand in multiple and in multiple and in multiple and in multiple

currenciescurrenciescurrenciescurrencies


Payables InvoicePayables InvoicePayables InvoicePayables InvoicePayables InvoicePayables InvoicePayables InvoicePayables InvoicePayables InvoicePayables InvoicePayables InvoicePayables InvoicePayables InvoicePayables InvoicePayables InvoicePayables Invoice

Chose to use an Chose to use an Chose to use an Chose to use an Chose to use an Chose to use an Chose to use an Chose to use an alternative Ledger alternative Ledger alternative Ledger alternative Ledger ----

or just an Adjustmentor just an Adjustmentor just an Adjustmentor just an AdjustmentLedger or segmentLedger or segmentLedger or segmentLedger or segment


EBusiness Tax

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

Business NeedsBusiness Needs SolutionSolution

Centralized Global TaxLess Complex Global Tax Compliance

Regulations • Tax simulator for setup, rules, and transactions

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.

Oracle E-Business TaxProcessing taxes for transactions and reporting

Single Interface for TransactionsSingle Interface for Transactions

Parties

PlacesPayables

Purchasing

Transactions

�� Compliance, Assurance �� Efficiency, Global Visibility

Tax

Transactions

Tax

Transactions

Taxes,

Rules

Taxes,

Rules

Determine

Regimes

Taxable

Basis

Calculate

Tax

Amount

Tax Status

& Rate

Applicable

Taxes

Transparent Integration with Tax Partner ServicesTransparent Integration with Tax Partner Services

Places

ProductsProducts

ProcessesProcesses

Payables

Receivables

Sales Orders

…Tax Reports- PDF, HTML, RTF- Security enabled

�� Extensible �� Service Oriented Architecture

Products

Processes


Advanced Intercompany

AGIS

Web UIWeb UI

Open Open Interfaces / Interfaces /

APIAPI

Excel Excel

Advanced GlobalIntercompany

System

Advanced GlobalIntercompany

SystemSubledgerSubledgerInvoices &Invoices &DocumentsDocuments

�� Generate subledger invoicesGenerate subledger invoices

�� Control transaction entry with Control transaction entry with Intercompany CalendarIntercompany Calendar

Online Online Reconciliation Reconciliation ReportingReporting

Advanced Global Intercompany SystemAddress the Top Barrier to a Fast Close

Excel Excel

(Web ADI)(Web ADI)Intercompany CalendarIntercompany Calendar

�� Fully Configurable Approval RulesFully Configurable Approval Rules

�� Flexible Security ModelFlexible Security Model

�� Centrally defined Intercompany Centrally defined Intercompany AccountsAccounts

ReportingReporting

XML XML Publisher Publisher ReportsReports

Subledger Subledger Subledger Subledger Subledger Subledger Subledger Subledger AccountingAccountingAccountingAccountingAccountingAccountingAccountingAccountingSubledger Subledger Subledger Subledger Subledger Subledger Subledger Subledger AccountingAccountingAccountingAccountingAccountingAccountingAccountingAccounting


General General General General General General General General Ledger Ledger Ledger Ledger Ledger Ledger Ledger Ledger ReceivablesReceivablesReceivablesReceivablesReceivablesReceivablesReceivablesReceivablesReceivablesReceivablesReceivablesReceivablesReceivablesReceivablesReceivablesReceivables PayablesPayablesPayablesPayablesPayablesPayablesPayablesPayablesPayablesPayablesPayablesPayablesPayablesPayablesPayablesPayables


Banking Model

Payment Engine

• Bank account is now associated with LE entity rather than Operating Unit

• Single bank account serves multiple Operating Units

• Any and all Operating

Centralized BankingShared Services Disbursements

LELELELE

OU AOU AOU AOU A OU BOU BOU BOU B OU COU COU COU C

• Any and all Operating Units associated with a ledger can be permitted to use the bank account

AssetsAssetsAssetsAssetsAssetsAssetsAssetsAssets

ProjectsProjectsReceivablesReceivables

PayablesPayablesPurchasingPurchasingPurchasingPurchasingPurchasingPurchasingPurchasingPurchasing

ProjectsProjectsProjectsProjectsProjectsProjectsProjectsProjectsReceivablesReceivablesReceivablesReceivablesReceivablesReceivablesReceivablesReceivables

PayablesPayablesPayablesPayablesPayablesPayablesPayablesPayables

InventoryInventoryInventoryInventoryInventoryInventoryInventoryInventory

Plus� Centralized Credit Card Model� Credit Card Encryption� Supplier & Customer Banks in TCA

Work in Work in Work in Work in Work in Work in Work in Work in ProcessProcessProcessProcessProcessProcessProcessProcessWork in Work in Work in Work in Work in Work in Work in Work in ProcessProcessProcessProcessProcessProcessProcessProcess

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

OU A

OU B

• New Payments Module

• New Bank Model

• New Bank & Credit Card Features

OU CBank

Single Payment Instruction

Invoices

Payments

Sub Ledger Sub Ledger Sub Ledger Sub Ledger Sub Ledger Sub Ledger Sub Ledger Sub Ledger AccountingAccountingAccountingAccountingAccountingAccountingAccountingAccountingSub Ledger Sub Ledger Sub Ledger Sub Ledger Sub Ledger Sub Ledger Sub Ledger Sub Ledger AccountingAccountingAccountingAccountingAccountingAccountingAccountingAccounting

Banks

Define Owner of Bank Account

Legal Entity

Banks

Grant OU Access to Bank Account

Operating Units


Multi-Org

Access Control

HollandHollandHollandHollandLegal Entity

DenmarkDenmarkDenmarkDenmarkLegal Entity

BelgiumBelgiumBelgiumBelgiumLegal Entity Functional TasksFunctional Tasks

Perform multiple tasks across operating units Perform multiple tasks across operating units Perform multiple tasks across operating units Perform multiple tasks across operating units without changing responsibilitieswithout changing responsibilitieswithout changing responsibilitieswithout changing responsibilities

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

ResponsibilityResponsibilityResponsibilityResponsibilityResponsibilityResponsibilityResponsibilityResponsibility ResponsibilityResponsibilityResponsibilityResponsibilityResponsibilityResponsibilityResponsibilityResponsibility ResponsibilityResponsibilityResponsibilityResponsibilityResponsibilityResponsibilityResponsibilityResponsibility

Legal Entity Legal EntityLegal Entity Functional Tasks

�Order Management

�Dunning, Collections, Billing

�Requisition, Demand & Purchase Orders

�Receiving & Drop Ship

� Invoice Receipt, Disbursement

�Customer Data Management

�Accounting Setup

Functional Tasks

�Order Management

�Dunning, Collections, Billing

�Requisition, Demand & Purchase Orders

�Receiving & Drop Ship

� Invoice Receipt, Disbursement

�Customer Data Management

�Accounting Setup

SingleSingleSingleSingle ResponsibilityResponsibilityResponsibilityResponsibility

BelgiumBelgiumBelgiumBelgiumOperating Unit

HollandHollandHollandHollandOperating Unit

DenmarkDenmarkDenmarkDenmarkOperating Unit

Multiple Organization Access Control

Summary 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• 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

Cross OU Reporting

• Enhanced Multi-Org Reporting

• Ledger/Ledger Set parameter on accounting reports and

processes

• OU parameter on other standard reports and processes

• Create XMLP Extracts & Templates that cross OU• Create XMLP Extracts & Templates that cross OU

• You can mix as many languages as you want.

• You can have templates translation extracted

• XMLP will merge the right language based on the user

locale (and the data).

• You can have the template with no text, and drive

everything from the xml data

• Beware of inconsistent definitions, currencies


New Standard

Reporting Paradigm

InvoicesInvoices ChecksChecks

BI PublisherEnable Business Users to Format and Deliver Documents

Integrated Solution For:

• Formatting

• Managing

• Delivering

Your Business Documents

XML/EFT/EDIXML/EFT/EDI

ReportsReportsLabelsLabelsXML PublisherXML Publisher

DestinationsDestinations

• Meet Business

Requirements

• Remove Complexity

• Reduce Maintenance Cost

• Reduce TCO

Integrate Out-of-the-Box with R9 CRM, ESA, FMS, HCM, and SCM

Templates

XML Publisher

Oracle Applications

CRM

Projects

FMS

Output FormatsData Sources

PDF

RTF

PublishingEngine

XML

• Email

• Printer

• Fax

HTML

XML

Order

Destination

EDI

Excel

BI PublisherBusiness Users Format and Deliver Documents

Integrate Out-of-the-Box with Oracle Applications

TemplatesFMS

HCM

SCM

Any XML

Data Source

Business User

Letters

FundTransfers

OnlinePaychecks

OrderConfirmations

BillsGovernmentGrant Forms

The New Standard Reports ParadigmBI Publisher and 835 Templates in the EBS

• Put reporting in the hands of the business user

• Create report formats using desktop tools (Adobe Acrobat, MS Word,

Benefits

• Replaces many standard

reports with data extracts

and templates

• Merges custom templates

and data extracts at run-time

What’s Happening

(Adobe Acrobat, MS Word, MS Excel, and XML Editors)

• Publish in any format, to the web and electronically

• Drive reporting consistency with one source of data

and data extracts at run-time

• Delivers output in PDF,

HTML, RTF, Excel (HTML),

or text for use with EFT and

EDI transmissions

• Example

• 98 removed reports in JE/JG

• 19 Extracts, 86 Templates

Financial Reporting with BI PublisherMore than 400 Modifiable Formats in Financials

Product Formats Product Formats

Assets 22 IT Audit 2

Cash 3 Loans 6

Collections 15 Payables 9

Common Modules 10 Payments 120

Financials Financials

Consolidation Hub21 Public Sector 6

General Ledger 14 Receivables 10

Globalizations 92Subledger

Accounting17

Internal Controls

Manager25 Tax 23

• Work GloballyWork GloballyWork GloballyWork Globally• Global Procurement• Global Billing• Global Dunning

• Manage GloballyManage GloballyManage GloballyManage Globally• Global Set-up• Global Ledger Sets

What the Architecture Gets You

Release 12 Subsidiary LEs….

…account for themselves in Ledgers, and…

Ledger SetLedger SetLedger SetLedger Set

Company CompanyCompany

• Global Ledger Sets worldwide insight

• Global Reporting• Comply LocallyComply LocallyComply LocallyComply Locally

• Statutory Accounting• Transaction Tax• Legal Entity processing

and reporting

ProjectsProjectsReceivablesReceivablesInventoryInventory

Work in ProcessWork in Process PurchasingPurchasing PayablesPayables



manage their subledger data in Operating Units

Data ManagementLeveraging centralized data model

PayablesPayablesPayablesPayablesPayablesPayablesPayablesPayablesPurchasingPurchasingPurchasingPurchasingPurchasingPurchasingPurchasingPurchasing

Global TaxGlobal TaxGlobal TaxGlobal Tax PaymentsPaymentsPaymentsPaymentsPaymentsPaymentsPaymentsPayments

SuppliersAuthorities, etc Party

Information

Cash Cash Cash Cash ManagementManagementManagementManagementBanks and Branches

Oracle Fusion MiddlewareOracle Fusion Middleware

Trading Community Architecture

Trading Community Architecture

ERPERPERPERPERPERPERPERP CRMCRMCRMCRMCRMCRMCRMCRM 3333rdrdrdrd PartyPartyPartyParty3333rdrdrdrd PartyPartyPartyParty

Comply LocallyLegislative Watch Process

• A team of domain experts from around the world monitor and analyze legal

and regulatory requirements

Legislative Updates and

TrendsMONITOR ANALYZE IMPLEMENT

Customer Requirements


Oracle LOBs


Development

•Provide input to development

planning process

Explain how product handles legal requirements

LocalizationsComply with Local Rules and Regulations

Argentina

Australia

Austria

Belgium

Brazil

Bulgaria

Canada

Mexico

Netherlands

New Zealand

Norway

Peru

Poland

Portugal

Finland

France

Germany

Greece

Hong Kong

Hungary

India

Spain

Sweden

Switzerland

Taiwan

Turkey

UAE

UkraineCanada

Chile

China

Colombia

Croatia

Czech Republic

Denmark

Portugal

Romania

Russia

Saudi Arabia

Singapore

Slovakia

South Africa

India

Ireland

Israel

Italy

Japan

Korea

Kuwait

Ukraine

United Kingdom

United States

Venezuela

Oracle E-Business Suite is used in over 150 countries.

Localizations - EBS 12Comply with Local Rules and Regulations

Argentina

Australia

Austria

Belgium

Brazil

Bulgaria

Canada

Mexico

Netherlands

New Zealand

Norway

Peru

Poland

Portugal

Finland

France

Germany

Greece

Hong Kong

Hungary

India

Spain

Sweden

Switzerland

Taiwan

Turkey

UAE

UkraineCanada

Chile

China

Colombia

Croatia

Czech Republic

Denmark

Portugal

Romania

Russia

Saudi Arabia

Singapore

Slovakia

South Africa

India

Ireland

Israel

Italy

Japan

Korea

Kuwait

Ukraine

United Kingdom

United States

Venezuela

Oracle E-Business Suite is used in over 150 countries.

Finding Additional InformationAccelerate your evaluation and planning

My Oracle Support E-Business Suite Release 12.1 Information Center

Knowledge > Tools and Training > Release 12.1 Info Center (Doc ID: 806593.1)

Finding Additional InformationEBS Globalization Center (Doc ID: 973912.1



R12.x Localizations Information

Countries Data Sheet

Finding Additional InformationEBS Product Locailzation



Finding Additional InformationEBS Add-On Localization



Finding Additional InformationEBS Financials Legislative Updates



My Oracle Support (formerly MetaLink): Advisor Webcast Program

47 Live Webcasts across Oracle E-Business SuiteKnowledge > Tools and Training > Training (Web Seminars)

(Doc ID: 398877.1)

Finding Additional InformationAccelerate your evaluation and planning

Questions and Answers

Fusion V1.x

Hyperion EPM 11.x

E-Business Suite 12.x

E-Business Suite 12.1

Fusion V1PeopleSoft

Enterprise 9.x

Hyperion EPM 11.1.1

PeopleSoft Enterprise 9.1

E-Business Suite 12.1.3

JD Edwards World A9.x

JD Edwards E1 9.0

JD Edwards World A9.2

Agile PLM 9.3.1

JD Edwards E1 9.x

E-Business Demantra 7.2

Demantra 7.3 GTM 6.1 Demantra 7.x

Continued Investment

E-Business Suite 12

Demantra 7.2Demantra 7.3OTM 6.0

GTM 6.1OTM 6.1

Demantra 7.xGTM/OTM 6.x

PeopleSoft Enterprise 9.0

Agile PLM 9.2.2.4

Agile PLM 9.3Hyperion EPM

11.1.2Agile PLM 9.x

JD Edwards World A9.1

Agile PLM for Process 5.2

Agile PLM for Process 6

Siebel CRM 8.2 for Pub Sec

Agile PLM for Process 6.x

JD Edwards E1 8.12

Siebel CRM 8.0

CRM On Demand 15

Siebel CRM 8.1.1

CRM On Demand 18

Siebel CRM 8.x

CRM On Demand 12

CRM On Demand 13

CRM On Demand 14

CRM On Demand 16

CRM On Demand 17

CRM On Demand 19/20

2006 2007 2008 2009 2010 2011+

Recommended ActionsUpgrade, Adopt, Extend

Upgrade to Latest Oracle

Applications Release

AdoptStandards-Based

Technology

Extend Business Value with

Co-existence Opportunities

E-Business Suite 12.1E-Business Suite 12.1

Oracle SOA Suite and AIAOracle SOA Suite and AIA

Oracle OBIEEOracle OBIEE

Fusion AppsFusion AppsVCP 12.1Demantra 7.3VCP 12.1

Demantra 7.3BI AppsBI Apps

JD Edwards E1 9.0

JD Edwards E1 9.0

Oracle ADF & WebCenterOracle ADF & WebCenter

Oracle Identity Mgmt

Oracle Identity Mgmt

Oracle Content ManagementOracle Content Management

Oracle Enterprise Mgr

Oracle Enterprise Mgr

Supply Chain:

- VCP

- Demantra

- Agile

Supply Chain:

- VCP

- Demantra

- AgileJD Edwards World A9.2JD Edwards World A9.2

OTM 6.1WMS 12.1OTM 6.1WMS 12.1

PeopleSoft Enterprise 9.1PeopleSoft

Enterprise 9.1

Agile PLM 9.3Agile PLM 9.3



CRMOn Demand

CRMOn Demand

HyperionEPM

HyperionEPM

GRCGRC

Industry AppsIndustry Apps

Siebel CRM 8.2Siebel CRM 8.2


It is not all architecture:

+300 Features R12.0

+270 Features R12.1

9 new products in R12.1Oracle Advanced Planning Command Center

Oracle Demand Signal Repository

Oracle Manufacturing Operations Center

Oracle Service Parts Planning

Oracle Site Hub

Oracle PIM for Retail

Oracle Supplier Ship & Debit

Oracle Price Protection

Oracle Landed Cost Management


Appendix:300+ New Features

New in Financial Control & ReportingHighly automated financials processing drives efficiencies

EFFICIENCYEFFICIENCYEFFICIENCYEFFICIENCY

• 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

FLEXIBILITYFLEXIBILITYFLEXIBILITYFLEXIBILITY

AUDITABILITYAUDITABILITYAUDITABILITYAUDITABILITY

• Data security across legal entities, ledgers or balancing segment values

• Control Accounts

• Accounting and reporting sequencing• Journal line reconciliation

New in Procure-to-PayIntegrated Suite Optimizes Working Capital

PRODUCTIVITYPRODUCTIVITYPRODUCTIVITYPRODUCTIVITY

COST SAVINGSCOST SAVINGSCOST SAVINGSCOST SAVINGS

• 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

COST SAVINGSCOST SAVINGSCOST SAVINGSCOST SAVINGS

INTEGRATIONINTEGRATIONINTEGRATIONINTEGRATION

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

New in Credit-to-CashAccelerate cash cycle and manage revenue with fiscal discipline

COMPLIANCECOMPLIANCECOMPLIANCECOMPLIANCE

BETTER CASH FLOWBETTER CASH FLOWBETTER CASH FLOWBETTER CASH FLOW

• 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

• Visibility to carry-forward balances with cycle-based billing

• Payment application according to customer preferences

BETTER CASH FLOWBETTER CASH FLOWBETTER CASH FLOWBETTER CASH FLOW

INDUSTRY SUPPORTINDUSTRY SUPPORTINDUSTRY SUPPORTINDUSTRY SUPPORT

configurable matrix

• Credit recommendation enhancements

• Conversion of delinquent receivables to payment plans

• 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

New in Cash and TreasuryOptimize Cash and Treasury Operations


COMPLEXITYCOMPLEXITYCOMPLEXITYCOMPLEXITYpayment 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

COMPLEXITYCOMPLEXITYCOMPLEXITYCOMPLEXITY

FLEXIBILITYFLEXIBILITYFLEXIBILITYFLEXIBILITY

New in Asset ManagementMaximize return on assets


PERFORMANCEPERFORMANCEPERFORMANCEPERFORMANCE

• Automate legacy asset conversion with enhanced preparation of Mass Additions

• Perform rollback on select assets with Automatic Depreciation Rollback

• Group Assets to include “Units of Production” method

• Energy straight-line depreciation method

• Asset impairment of a producing asset

INDUSTRY SUPPORTINDUSTRY SUPPORTINDUSTRY SUPPORTINDUSTRY SUPPORT

Depreciation Rollback

New in Travel & ExpenseLower the total cost of travel and expense

LOWER COSTSLOWER COSTSLOWER COSTSLOWER COSTS

ACCURACYACCURACYACCURACYACCURACY

• CONUS and OCONUS global per diem rates

• Per diem and policy schedules

• Expense splitting across multiple accounting segments

• Self-service cash advance application during entry

• Bar code generation

• Streamlined receipts management with receipts tracking and receipts missing capabilities

PRODUCTIVITYPRODUCTIVITYPRODUCTIVITYPRODUCTIVITY

• Enhanced cost center and projects approvals