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ORACLE E-BUSINESS SUITE

RELEASE CONTENT DOCUMENT

FinancialsRelease 12.1 (through 12.1.3)

Prepared by EBS Product Management & Strategy

Last Updated: February 2, 2012

Version: 3.0

Copyright © 2010 Oracle Corporation

All Rights Reserved



Oracle E-Business Suite Release 12.1 Release Content Documenti

Table of Contents

1. Disclaimer 1

2. Introduction 2

2.1.

Purpose of Document 2

3.

New and Changed Features in Financials 3

3.1. Oracle Advanced Global Intercompany System (AGIS) 3

3.1.1.

Overview 3

3.1.2. Release 12.1.2 3

3.1.2.1.

Purge Rejected Intercompany Batches from Interface Table 3

3.2. Oracle Advanced Collections 3

3.2.1. Release 12.1.1 3

3.2.1.1. Customer Dispute Enhancement 3

3.2.1.2.

Customer Level Bankruptcy 4

3.2.1.3. Status Assignment at Case and Contract Level 4

3.2.2. Release 12.1.2 4

3.2.2.1.

Multiple Level Collections Strategy Management 4

3.2.3. Release 12.1.3 4

3.2.3.1. Staged Dunning 4

3.3. Oracle Assets 5

3.3.1.

Release 12.1.3 5

3.3.1.1.

Asset Impairment for Japan Tax Reform 2007 5

3.4. Oracle Cash Management 5

3.4.1.

Release 12.1.1 5

3.4.1.1. International Bank Account Number (IBAN) Support 5

3.4.1.2.

Bank Identifier Code (BIC) Support 5

3.4.1.3.

Payment Group based Bank Statement Reconciliation 5

3.4.2. Release 12.1.2 6

3.4.2.1.

Option to Override Country-Specific Validation for Bank Accounts 6

3.4.2.2.

EDIFACT Bank Statement Format Update 6

3.4.2.3. Copy Bank Transaction Codes 6

3.4.2.4.

Load Bank Statements for the Current Day 6

3.4.1.

Release 12.1.3 7

3.4.1.1.

Manual Entry in Cash Position 7

3.5. Oracle Credit Management 7

3.5.1.

Release 12.1.3 7

3.5.1.1. Configurable Analyst Assignment Rules 7

3.6. Oracle Environmental Accounting & Reporting 7

3.6.1.

Overview 7

3.6.2. Release 12.1.3 8

3.6.2.1.

Capture of Energy Usage and Environmental Data 8

3.6.2.2.

Emission Sources, Scopes and Factors 8



Oracle E-Business Suite Release 12.1 Release Content Documentii

3.6.2.3. Calculation and Classification of Greenhouse Gas Emissions 9

3.6.2.4.

Environmental Ledger 9

3.6.2.5.

Flexible Reporting and Organizational Structures 9

3.6.2.6. Pre-Built Analytics and Dashboard with Dynamic User Interaction 9

3.6.2.7.

User-Defined Key Performance Indicators 10

3.6.2.8.

Target and Threshold Definition 10

3.7. Oracle Financials for EMEA 10

3.7.1. Release 12.1.1 10

3.7.1.1.

Business Intelligence Publisher Support for Select EMEA Reports 10

3.7.1.2.

Enhanced Statutory Report Extracts for Italy 11

3.8. Oracle Financials for India 11

3.8.1.

Release 12.1.1 11

3.8.1.1. Fringe Benefit Tax Support 11

3.8.1.2. Inclusive Tax Support 11

3.8.1.3.

Retroactive Pricing Support 11

3.8.1.4. Payables Invoices Support for India 11

3.8.2. Release 12.1.2 11

3.8.2.1.

Advanced Pricing Support for India 11

3.8.2.2. Tax Information on Purchase Order Workflow Notification for India 12

3.8.2.3. Reassessing Service Tax on Receipt of Foreign Payments for India 12

3.8.3.

Release 12.1.3 12

3.8.3.1.

Descriptive Flex Field (DFF) Support 12 3.8.3.2. Display of Value Added Tax (VAT) Invoice Number in Receivables Transaction Workbench for India12

3.8.3.3.

General Ledger Journal Drill-Down Support 12

3.9. Oracle General Ledger 12

3.9.1. Release 12.1.1 12

3.9.1.1.

Enhanced Financial Statement Generator Reporting to Display Content Set Values 12

3.9.2. Release 12.1.2 13

3.9.2.1. Enhanced Financial Statement Generator Reporting to Support Drill-down for Non-Contiguous Account

Ranges 13

3.9.2.2. Streamlined Excel-based Financial Statement Publishing 13

3.9.3. Release 12.1.3 13

3.9.3.1.

Synchronize Reversing Journals between Primary and Secondary Ledgers 13

3.9.3.2. Limit Accounts in Budget Wizard 13

3.10. Oracle Internet Expenses 13

3.10.1.

Release 12.1.2 13

3.10.1.1.

Access Expense Attachments from Invoice 13

3.10.1.2. Support Receipts Required for Mileage Category 14

3.10.1.3.

Archive and Purge of Expense Reports 14

3.10.1.4. Read-Only Access to Per Diem and Mileage Details in Audit 14

3.10.1.5. AMEX Loader Option to Not Load Payment Transactions 14

3.10.2.

Release 12.1.3 14

3.10.2.1. Expense Receipt Management Enhancements 14

3.10.2.2. Duplicate Expense Detection 14

3.11. Oracle Legal Entity Configurator 14

3.11.1.

Release 12.1.3 14

3.11.1.1. Enhanced Legal Addresses 14

3.12. Oracle Loans 15

3.12.1.

Release 12.1.2 15

3.12.1.1. Process Application Fees without Loan Approval 15

3.12.1.2.

Ad-hoc Billing and Receipt Application 15

3.12.1.3.

Loan Forgiveness 15

3.12.2. Release 12.1.3 16

3.12.2.1.

Multiple Disbursements during Loan Servicing 16

3.13.

Oracle Payables 16



Oracle E-Business Suite Release 12.1 Release Content Documentiv

3.13.1. Release 12.1.1 16

3.13.1.1.

Enhanced Withholding Tax Calculation for Brazil 16

3.13.1.2.

Discount Calculation Enhancements 16

3.13.1.3. Subcontractor Management for Engineering and Construction 16

3.13.1.4.

Supplier Dispute Processing 16

3.13.1.5.

Third Party Payments 17

3.13.1.6. Business Intelligence Publisher Support for Selected Payables Reports 17

3.13.2.

Release 12.1.2 17

3.13.2.1.

Replace Supplier Bank Accounts on Invoices 17

3.13.2.2.

Change Taxes from Inclusive to Exclusive Online 17

3.14. Oracle Payments 18

3.14.1.

Overview 18

3.14.2. Release 12.1.1 18

3.14.2.1. Single Euro Payments Area (SEPA) Support 18

3.14.2.2.

Paymentech Integration Certification 18

3.14.2.3. Positive Pay File with Additional Parameters 18

3.14.3.

Release 12.1.2 18

3.14.3.1.

PA-DSS for Credit Card Processing 18

3.15. Oracle Profitability Manager 19

3.15.1. Overview 19

3.15.2.

Release 12.1.1 19

3.15.2.1.

Identification of Business Rules that Reference Disabled/Inactive Dimension Members 19

3.16. Oracle Receivables 20

3.16.1.

Release 12.1.1 20

3.16.1.1. Cash Application Work Queue 20

3.16.1.2. Enhanced Line Level Cash Application 20

3.16.1.3.

Enhanced Performance for High Volume Receivables Processing 20

3.16.1.4. Golden Tax Adaptor Enhancements for Mainland China 20

3.16.1.5. Business Intelligence Publisher Support for Selected Receivables Reports 21

3.16.2.

Release 12.1.2 21

3.16.2.1. Default Customer Bank Account Information on Unidentified Receipts 21

3.16.2.2. Enhanced Aging Report to Support Multi-Fund Accounts Receivables 21

3.17. Oracle Subledger Accounting 22

3.17.1.

Release 12.1.1 22 3.17.1.1. Historical Data Initialization for New Reporting Currencies and Secondary Ledgers 22

3.17.2.

Release 12.1.2 22

3.17.2.1.

Accounting Rules Detail Report and Enhanced Subledger Accounting Online Inquiry 22

3.17.2.2. Accounting Data On-Demand Upgrade by Subledger 22

3.17.3.

Release 12.1.3 23

3.17.3.1. New Control Accounts Qualifier 23

3.18. Oracle Treasury 23

3.18.1.

Release 12.1.2 23

3.18.1.1.

International Bank Account Number (IBAN) Support for Counterparty Bank Accounts 23

3.18.2. Release 12.1.3 23

3.18.2.1.

Reconcile Treasury Transactions of all Deal Types 23

3.19.

Oracle U.S. Federal Financials 24

3.19.1. Release 12.1.2 24

3.19.1.1.

Enhanced Delinquency Processing 24

3.19.2.

Release 12.1.3 24

3.19.2.1. Updates to Year-End Close Processing 24

3.19.2.2.

Extract File Changes for Central Contractor Registration (CCR) 24

3.20.

Tax, Legal and Regulatory Updates 24

3.20.1. Overview 24

3.20.2.

Release 12.1.1 25

3.20.2.1.

Brazil: Fiscal SPED – Support for Fiscal Book Generation and Electronic Invoice Integration 25



Oracle E-Business Suite Release 12.1 Release Content Documentv

3.20.2.2. Japan: Asset Depreciation Enhancements for Japan Tax Reform Act of 2007 26

3.20.2.3.

United Kingdom: Reverse Charge VAT 26

3.20.3.

Release 12.1.2 27

3.20.3.1. Argentina: Turnover Tax Withholding/Perception Regimes 27

3.20.3.2.

Brazil: Federal SPED Regulation - Accounting SPED 28

3.20.3.3.

China: Golden Tax Adapter Enhancements 29

3.20.3.4. Italy: Annual VAT Extract 29

3.20.3.5.

Italy: Annual Withholding Extract 30

3.20.3.6.

Japan: Enhanced Support for Tax Reform 2007/2008 30

3.20.3.7.

Spain: VAT Legislation: Modelo 340 Informative Declaration 31

3.20.3.8.

Spain: VAT Legislation: Modelo 347 Domestic Transactions Turnover Report Changes 31

3.20.3.9.

Spain: VAT Legislation: Modelo 415 Canary Island Turnover Report Changes 31

3.20.3.10. Spain: Changes to Taxpayer ID Validation 32

3.20.3.11.

United Kingdom: Support for Revaluations and Impairments per Statement of Recommended Practice for

United Kingdom Local Authority Accounting 32

3.20.3.12. U.S. Federal: New FACTS II Edit Checks and File Layout Changes 32

3.20.3.13.

U.S. Federal: Enhanced Central Contractor Registration (CCR) Processing 33

3.20.3.14.

Global: Support for Asset Impairment in Accordance with International Accounting Standard 36 33

3.20.3.15. Global: Year End Closing Process 33

3.20.4.

Release 12.1.3 33

3.20.4.1.

Argentina: Support for Argentina Simplified Regime (Monotributo) 33

3.20.4.2. Belgium: Annual VAT Report File Format v1.3 34

3.20.4.3.

Brazil: Support for Brazilian Electronic Collection Document Process (DDA) 34

3.20.4.4.

China: Support for Version 2 of the China Accounting Software Data Interface Standard 35

3.20.4.5. India: Enhanced Value Added Tax (VAT) Functionality to Support Flexible Recovery Schedule for India

35

3.20.4.6.

India: Value Added Tax (VAT) Statutory Accounting and Reporting for Non-Shippable Items 35

3.20.4.7. Israel: Israel VAT Report Enhancement 35

3.20.4.8.

Israeli: Withholding Tax File – 856 36

3.20.4.9.

U.S. Federal: Extract File Changes for Central Contractor Registration (CCR) 36

3.20.4.10. U.S. Federal: Regulatory Updates to Statement of Budgetary Resources 36

3.20.4.11.

U.S. Federal: Regulatory Updates to SF-133 Report 37

3.20.4.12.

Global: European Community VAT Changes for 2010 37

4.

New and Changed Features in Real Estate Management 38

4.1.

Oracle Property Manager 38 4.1.1.

Overview 38

4.1.2. Release 12.1.1 Leasing Features 38

4.1.2.1. New Lease Statuses 38

4.1.2.2.

Lease Extension Enhancements 38

4.1.2.3. Tenancy Extension and Contraction 39

4.1.2.4. Assignment Occupancy Percent Determined by Attribute on Tenancy 39

4.1.2.5.

Multiple Schedules for Same Schedule Day 39

4.1.2.6. Prorating the Billing/Payment Amount based on a New Start Day Field 39

4.1.3. Release 12.1.1 Variable Rent Features 39

4.1.3.1.

Breakpoint Flexibility 39

4.1.3.2. Updating Breakpoints 39

4.1.3.3. Natural Breakpoint Enhancements 39

4.1.3.4.

Early Termination of Agreement or Lease 40 4.1.3.5. Extension of Variable Rent Agreements 40

4.1.3.6.

New Calculation Methods 40

4.1.3.7.

New Partial Year Calculation Methods 40

4.1.3.8. Month-to-Month Roll Forward of Variable Rent Agreements 41

4.1.3.9.

Enhancement to Cumulative Calculation Method 41

4.1.3.10.

Allowances and Abatements 41

4.1.3.11. Carry Forward of Excess Abatement as Negative Rent 41

4.1.3.12.

Constraints 41

4.1.3.13.

Updating Volumes 41

4.1.3.14. Additional Frequency Attribute 42



Oracle E-Business Suite Release 12.1 Release Content Documentv

4.1.3.15. Streamlining of Adjustments 42

4.1.3.16.

Form Enhancements 42

4.1.3.17.

Display of Calculation Results 42

4.1.3.18. Variable Rent Templates 42

4.1.3.19.

Term Template Enhancements 42

4.1.3.20.

Processing by Property 43

4.1.3.21. Improved Variable Rent Report 43

4.1.4.

Release 12.1.1 Index Rent Features 43

4.1.4.1.

Early Termination of Rent Increase Agreements 43

4.1.4.2.

Extension of Rent Increase Agreements 43

4.1.4.3.

Month-to-Month Roll Forward 43

4.1.4.4.

Index Multiplier 43

4.1.4.5. Proration 43

4.1.4.6.

Term Length 43

4.1.4.7.

Include/Exclude Option 43

4.1.4.8. Recurring Backbill Terms 44

4.1.4.9.

Rent Increase Report 44

4.1.5.

Release 12.1.1 Operating Expenses Features 44

4.1.5.1. Create Operating Expense Agreement 44

4.1.5.2.

Enter and Maintain Estimated Payment Terms 45

4.1.5.3.

Reconciliation 45

4.1.5.4. Operating Expense Agreement Dashboard 46



Oracle E-Business Suite Release 12.1.Release Content Document Purpose of Document 2

2.

Introduction

2.1.

Purpose of Document

This Release Content Document (RCD) communicates information about new or

changed functionality introduced in Oracle E-Business Suite Release 12.1 and

subsequent 12.1.x Release Update Packs and off-cycle patches.

For your convenience, features are organized by product, and then by the release in

which they first became available. Release 12.1.1 was the first generally-available

release of Release 12.1. Features released in an off-cycle patch on Release 12.1.1, but

before Release 12.1.2, are designated as Release 12.1.1+. Features released in RUP2 of

Release 12.1 are designated as Release 12.1.2, and so on.

Existing functionality in Release 12.0, Release 12.0.x Release Update Packs (RUPs), or

prior releases is not described in this document. For a complete overview of all

functionality included in prior releases, this document should be read in conjunction with

the Release 12 and Release 12.0.x RUP RCDs. These RCDs can be found in My Oracle

Support Knowledge Document 404152.1 Release Content Documents for E-Business

Suite Release 12 and 12.0.x Release Update Packs .

https://support.oracle.com/CSP/ui/flash.html#tab=KBHome%28page=KBHome&id=%28%29%29,%28page=KBNavigator&id=%28bmDocID=404152.1&from=BOOKMARK&bmDocDsrc=KB&viewingMode=1143%29%29

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Oracle E-Business Suite Release 12.1.Release Content Document Oracle Advanced Global Intercompany System (AGIS) 3

3.

New and Changed Features in Financials

3.1. Oracle Advanced Global Intercompany System (AGIS)

3.1.1. Overview

Oracle Advanced Global Intercompany System (AGIS) streamlines the intercompany

trading and reconciliation process across ledgers. Oracle AGIS facilitates balanced

intercompany transactions for the global enterprise by providing a forum for trading

partners to record and approve intercompany transactions in a controlled manner.

Oracle AGIS allows companies to comply not only with local regulations, but also to

follow established corporate standards for processing intercompany transactions between

related legal entities of an enterprise. It also provides interactive reconciliation reporting,

which allows drilldown to the details of Intercompany Account Balances so the source of

discrepancies to the balances of each trading partner’s account balances can be found

quickly.

3.1.2. Release 12.1.2

3.1.2.1. Purge Rejected Intercompany Batches from Interface Table

Oracle AGIS introduces a new Purge Rejected Intercompany Transactions Program to

purge rejected intercompany transaction batches from intercompany interface tables.

Oracle AGIS validates intercompany transaction batches imported from external source

applications. Batches that pass validation become intercompany transactions in AGIS.

Batches that fail validation are retained in the intercompany interface table with a

Rejected status. These rejected intercompany transactions occupy space in the databaseand can lead to detrimental impact on system performance. Users can use the new

concurrent program to preview and purge the rejected intercompany transactions.

3.2.

Oracle Advanced Collections

3.2.1. Release 12.1.1

3.2.1.1. Customer Dispute Enhancement

Collectors require the ability to record comments while researching transactions and

interacting with customers during the dispute process. A new Internal Comment field is

available on all screens used to submit and manage disputes. This field streamlines the

dispute submission and approval process by allowing collectors to enter and share

comments to internal users such as receivables specialists.



Oracle E-Business Suite Release 12.1.Release Content Document Oracle Advanced Collections 4

3.2.1.2. Customer Level Bankruptcy

During various stages of a customer’s bankruptcy process their outstanding business

transactions require specialized handling. In prior releases of Advance Collections,

individual transactions had to be marked with a Bankruptcy status. Collections agents

can now assign Bankruptcy status at the customer level, ensuring that all transactions in

all accounts and bill to sites are status and managed uniformly.

This feature has also been back-ported to 12.0 via the standalone patch:

8522751:R12.IEX.A.

3.2.1.3. Status Assignment at Case and Contract Level

Collectors can now better manage their leasing delinquencies by assigning delinquency

levels including the lease contract, the lease case, or specific transactions.

3.2.2. Release 12.1.2

3.2.2.1. Multiple Level Collections Strategy Management

In prior releases, collections strategies could only be executed at one business (party,

account, bill to site) at a time. Enterprises require the ability to execute strategiessimultaneously at different levels for different customers and operating units, for

example, in one region - at Bill to level, in another region – at Account level. This new

feature allows managers to setup and execute strategies at multiple collection business

levels while allowing collections agents to change specific customer strategies to

different business levels as required.

Collections managers are now able to plan and manage collections strategies that support

their unique business requirements where strategies must be executed at different

operating units, groups of customers or specific customers. Collections agents can view

strategies at different levels on their work queue and on the strategy tab. Delinquent

customers are managed at the business level most appropriate to their business model.

Additionally, background processes including collections and strategy management can

now be executed at different levels concurrently.

3.2.3. Release 12.1.3

3.2.3.1. Staged Dunning

In addition to the Aged Dunning method that is based on a customer’s oldest aged

invoice, Collections organizations may now use Staged Dunning method. The Staged

Dunning method ensures the dunning notices set to a customer automatically

incremented based on the collection score and pre-defined number of days between

letters being sent.



Oracle E-Business Suite Release 12.1.Release Content Document Oracle Assets 5

3.3. Oracle Assets

3.3.1. Release 12.1.3

3.3.1.1. Asset Impairment for Japan Tax Reform 2007

As defined by previous regulatory initiatives in Japan and the Japan Tax Reform of 2007

the impairment functionality in Oracle Assets has been extended to perform and account

for asset impairments in compliance with Japanese accounting regulations. Impairment

losses can now be derived and recorded for Japan-specific depreciation methods.

The following impairment feature functionality is now available for Japan depreciation

methods.

• Japan specific impairment loss calculations

• Assignment and impairment of assets within Cash Generating Units

• Impairment of fully reserve and non-depreciating assets

• Impairment of assets exceeding depreciation limits

3.4. Oracle Cash Management

3.4.1. Release 12.1.1

3.4.1.1.

International Bank Account Number (IBAN) Support

International Bank Account Number (IBAN) is an international standard for identifying

bank accounts across national borders in a way that would minimize the risk of

propagating transaction errors. Cash Management now validates IBAN at the time of

recording bank account details. This validation is based on standard Modulo-97 checks.

This feature has also been back-ported to 12.0.6 via the standalone patch:

7552541:R12.IBY.A.

3.4.1.2. Bank Identifier Code (BIC) Support

Bank Identifier Code (BIC) is a unique identification for bank branches. This code can

be 8 or 11 characters in length. Cash Management now validates the length of BIC when

recording bank branch details.


7552541:R12.IBY.A.

3.4.1.3. Payment Group based Bank Statement Reconciliation

Oracle Cash Management now utilizes the new Payment Group Number attribute as an

optional matching criterion for manual and automated reconciliation of bank statements.


7552541:R12.IBY.A.



Oracle E-Business Suite Release 12.1.Release Content Document Oracle Cash Management 6

3.4.2. Release 12.1.2

3.4.2.1. Option to Override Country-Specific Validation for Bank Accounts

Sometimes legacy bank account numbers do not conform to modern country-specific

validation rules. Users can now disable the default country-specific bank validations to

migrate legacy bank account information.

This feature has also been back-ported to following releases:

Release Patch Number

12.0.4 7582842:R12.CE.A

12.1.1 8871846:R12.CE.B

3.4.2.2. EDIFACT Bank Statement Format Update

The bank statement loader program supports EDIFACT statements. With this release,

the following additional data processing features are addressed:

• Support for non-numeric characters in bank balances. The opening and closing

balance amounts sent in the EDIFACT statements contain non-numericcharacters. The bank statement loader and import program is enhanced to

convert the non-numeric characters into numeric values.

• Support loading and importing the Record 05. The current seeded loader is

enhanced to handle the record type 05. This additional record is defined as part

of the EDIFACT standard and contains the contextual information of Record 04.

This feature been back-ported to following releases:


12.0.4 8874185:R12.CE.A

12.1.1 8942035:R12.CE.B

3.4.2.3. Copy Bank Transaction Codes

Bank transaction codes are used by banks to identify the types of transactions on bank

statements. The codes are set up for each bank account for reconciliation purposes. For

organizations having several bank accounts, it can be a cumbersome process to manually

setup these transaction codes since most bank accounts for a specific bank use the same

transaction codes.

A new concurrent program has been provided to copy the bank transaction codes from

one bank account to another bank account(s).

3.4.2.4.

Load Bank Statements for the Current Day

In previous releases, users could only import bank statements and perform bank balance

maintenance for past dates. Users can now enter or import bank statements and perform

bank balance maintenance for the current date.



12.0.6 8965556:R12.CE.A

12.1.1 9090829:R12.CE.B



Oracle E-Business Suite Release 12.1.Release Content Document Oracle Credit Management 7

3.4.1. Release 12.1.3

3.4.1.1. Manual Entry in Cash Position

The cash position functionality has been enhanced to allow cash managers the ability to

manually enter cash flows into their cash positions allowing for greater flexibility in their

decision making process.



12.0.6 9059098:R12.CE.A

12.1.1 9059098:R12.CE.B

3.5. Oracle Credit Management

3.5.1. Release 12.1.3

3.5.1.1.

Configurable Analyst Assignment Rules

In addition to the seeded assignment rules, Oracle Credit Management can now assign

credit analyst to case folders based on user-defined assignment rules and parameters.

This offers greater flexibility in addressing customer specific work load management

needs.

3.6. Oracle Environmental Accounting & Reporting

3.6.1.

Overview

Oracle Environmental Accounting and Reporting enables organizations to track their

greenhouse gas (GHG) emissions and other environmental data against reduction targets

and facilitates environmental reporting for both voluntary and legislated emissions

reporting schemes.

Oracle Environmental Accounting and Reporting enables organizations to capture

environmental data either electronically or manually; convert that to greenhouse gas

emissions; and identify opportunities to reduce cost and CO2 emissions.

Oracle Environmental Accounting and Reporting is available for Oracle E-Business

Suite version 12.1 and higher. It has been developed using the native technology of

Oracle E-Business Suite, backed by a common business analytics layer developed in

Oracle Business Intelligence Suite Enterprise Edition Plus, which is a required

technology component.



Oracle E-Business Suite Release 12.1.Release Content Document Oracle Environmental Accounting & Reporting 9

3.6.2.3. Calculation and Classification of Greenhouse Gas Emissions

Oracle Environmental Accounting and Reporting provides the built-in mechanisms for

calculating emissions and classifying them as Scope 1, 2, or 3 using the Greenhouse Gas

Protocol guidelines published by the World Resources Institute. The Emissions

Calculation Engine uses the collected usage data to calculate the relevant emissions

using seeded formulas based on the energy and emission factors setup for the emission

sources. This enables organization to accurately communicate greenhouse gas emissions

and other environmental impacts to constituents including regulators, customersshareholders and employees.

3.6.2.4. Environmental Ledger

The Environmental Ledger stores all changes to the environmental transactions including

voiding, reversal, recalculation, and measurement criterion updating transactions. The

changing landscape of compliance mandates drives companies to provide more

comprehensive, transparent, accurate and auditable data. Oracle Environmental

Accounting and Reporting allows you to have a single source of truth assuring data

quality and auditability.

3.6.2.5. Flexible Reporting and Organizational Structures

Oracle Environmental Accounting and Reporting enables the creation of Environmental

Organizations. An organization is defined as a single undertaking or an enterprise or any

entity that performs activities or a series of activities that emit greenhouse gases and/or

produces, or consumes energy at a single site and is attributable to a single industry

sector. An organization can have multiple hierarchies for reporting, for example,

government reporting hierarchy, operational hierarchy, or legal structure hierarchy. In

addition an organization can be a division, company subsidiary, or operation (i.e

facilities, plants). The integration with the native ERP enables leveraging existingstructures as well as specifying additional hierarchies for GHG Protocol and other

reporting guidelines, including the ability to define aggregation levels and to manage

acquisitions and divestitures.

3.6.2.6. Pre-Built Analytics and Dashboard with Dynamic User Interaction

Pre-built Oracle Business Intelligence Enterprise Edition (OBIEE) dashboards enable the

dynamic generation of reports providing insight into an organization’s emissions and

other environmental impacts. The dashboards provide information on energy usage

emissions, key performance indicators (KPIs), activities and transactions. Users can view

graphical representations of the data; drill down into output of past, current, and projected data; analyze historical trends; define variance thresholds and receive alerts

and publish and distribute reports in multiple formats. The pre-built OBIEE reporting

and analytics dashboards also include the quantitative responses to the Carbon

Disclosure Project (CDP). OBIEE’s powerful and flexible framework allows for the

quick creation of reports for reporting schemes such as Climate Registry (USA), EPA 40

CFR Part 98 Rule (USA), Carbon Reduction Commitment (UK), and Nationa

Greenhouse and Energy Reporting Act (Australia). Measuring performance and setting

targets allows organizations to become more productive, profitable and sustainable by



Oracle E-Business Suite Release 12.1.Release Content Document Oracle Financials for EMEA 10

providing powerful insights into high opportunity areas for emissions reductions, energy

savings, and cost savings. In addition, OBIEE allows users to quickly create custom user

defined reports.

3.6.2.7. User-Defined Key Performance Indicators

Oracle Environmental Accounting and Reporting enables organizations to create and

modify standard and custom industry-specific key performance indicators (KPIs) to

measure performance and monitor key environmental metrics such as energy, waste, and

water. Users can normalize data to operational metrics and use a drag-and-drop

environment in OBIEE to create custom reports. Examples of these KPIs are energy

usage per square foot, water usage by employee, etc. Using these metrics organizations

can benchmark and affect behavioral change to reduce environmental impacts in the

relative context of the organization’s growth.

3.6.2.8. Target and Threshold Definition

Oracle Environmental Accounting and Reporting enables organizations to establish a

baseline of its greenhouse gas emissions, energy usage, and other key environmenta

indicators and set reductions targets. Graphical indicators on the Business Intelligence

dashboards illustrate to users on a timely basis whether the organization is performing

above, below, or in-line with the targets so that corrective actions can be taken as needed

to successfully execute on the organization’s sustainability initiatives.

3.7. Oracle Financials for EMEA

3.7.1. Release 12.1.1

3.7.1.1.

Business Intelligence Publisher Support for Select EMEA Reports

The following Oracle Financials for EMEA reports have been re-written utilizing the

Business Intelligence Publisher (BIP) tool. BIP based reports offer greater flexibility to

end users in changing report layouts and formats.

• Payables Turnover Report

• Supplier Statements

• Receivables Aggregate VAT Statement

•

Customer Statements

• Regional Cash Desk Report

• Account Analysis Report

• Account Analysis Detailed Reporting



Oracle E-Business Suite Release 12.1.Release Content Document Oracle Financials for India 11

3.7.1.2. Enhanced Statutory Report Extracts for Italy

Article 37 of Italian Legislative Decree No. 223/2006 introduced a new fiscal

requirement whereby all legal organizations must provide customer and supplier listings

in electronic format to the Italian fiscal authorities on a yearly basis.

The Italian supplier and customer listing reports available in prior releases are now

replaced with new Italian Customer and Supplier Listing data extracts.

3.8.

Oracle Financials for India

3.8.1. Release 12.1.1

3.8.1.1. Fringe Benefit Tax Support

Fringe Benefit Tax (FBT) was introduced in India as part of Budget 2005-2006, to tax

specific employee expenses not treated as individual income.

Oracle Financials for India enables computation, payment, tracking, and statutory

reporting of Fringe Benefit Taxes on non-payroll expenses.

3.8.1.2.

Inclusive Tax Support

Oracle Financials for India now supports the setup, calculation, accounting and reporting

of inclusive taxes for payables and receivable transactions.

3.8.1.3. Retroactive Pricing Support

In order to accurately reflect payable obligations, it is necessary to propagate retroactive

price modifications on blanket agreements to downstream documents such as releases

and standard purchasing orders.

The retroactive pricing process is modified to recalculate India taxes on transactions

such as receipts, accruals, credit memos, and price correction invoices. A new user

interface enables users to claim credit for increases in recoverable taxes.

3.8.1.4.

Payables Invoices Support for India

Oracle Financials for India now supports tax calculation for unmatched payables

invoices. A new window is available to manage India taxes on unmatched invoices.

3.8.2. Release 12.1.2

3.8.2.1. Advanced Pricing Support for India

Oracle Financials for India now allows users to calculate excise and VAT assessable

values based on the advanced price list. The advanced price list is based on the item

category. Users can associate a price list with an item category to determine assessable

values for all items classified under that category.



Oracle E-Business Suite Release 12.1.Release Content Document Oracle Internet Expenses 13

3.9.2. Release 12.1.2

3.9.2.1. Enhanced Financial Statement Generator Reporting to Support Drill-down for

Non-Contiguous Account Ranges

General Ledger provides a streamlined drill path from the monetary amounts in financial

statements to the underlying detail balances. After running a FSG report, users can drill

from any summarized financial balance in the report directly to the detail account

balances that comprise the summary amount, even if the summary amount representsmultiple non-contiguous account ranges.

This process allows users to perform the drill down efficiently in one step and eliminates

the need to perform multiple searches by selecting one account range at a time. It also

improves usability by enabling the user to see all the information on a single page.

3.9.2.2. Streamlined Excel-based Financial Statement Publishing

Users can now publish FSG reports natively as Excel files. Users can create presentation

templates using Excel, and then run reports using BI Publisher’s Excel publishing

capabilities to generate an Excel file that opens directly in Excel. Users can then drill to

the underlying details, leveraging General Ledger’s Account Analysis and Drilldowncapability.

3.9.3. Release 12.1.3

3.9.3.1.

Synchronize Reversing Journals between Primary and Secondary Ledgers

Oracle General Ledger now streamlines the propagation of journal reversals from the

primary ledger to the associated secondary ledgers. The manual reversal of primary

ledger journal entries now automatically reverses the corresponding journal entries in the

secondary ledger.

3.9.3.2. Limit Accounts in Budget Wizard

In prior releases, users could only use specific account code combinations ranges in the

Oracle General Ledger Budget Wizard to limit accounts for the budget entry process.

The Budget Wizard now allows users to use low and high values for one or more

segments in the account range.

3.10. Oracle Internet Expenses

3.10.1.

Release 12.1.2

3.10.1.1.

Access Expense Attachments from Invoice

The Expense Report Export program has been enhanced to provide the option Transfer

Attachments to transfer attachments from an expense report to an invoice. This option

enables the payables person to access the attachment from Invoice without having to use

Internet Expenses responsibilities and efficiently execute audits.



Oracle E-Business Suite Release 12.1.Release Content Document Oracle Legal Entity Configurator 14

3.10.1.2. Support Receipts Required for Mileage Category

United Kingdom HM Revenue & Customs department requires employees to submit

invoices/tax receipts to employers for any mileage related claims so that the employers

can recover VAT on fuel purchased by employees used for business purposes.

The Receipts Required feature has been enhanced to provide support for expense types

associated with the Mileage expense category.

3.10.1.3.

Archive and Purge of Expense Reports

This new program enables administrators to archive and purge expense reports related

data that is no longer needed.

3.10.1.4. Read-Only Access to Per Diem and Mileage Details in Audit

The Audit Expense Report page has been enhanced to allow auditors to view Per Diem

& Mileage category expense details.

3.10.1.5. AMEX Loader Option to Not Load Payment Transactions

The American Express Transaction Loader and Validation program has been enhanced tooptionally load payment transactions.

3.10.2. Release 12.1.3

3.10.2.1. Expense Receipt Management Enhancements

Oracle Internet Expenses has been enhanced to provide users the ability to define rules to

accept, track and route imaged receipts to the appropriate auditor work queue.

Faxed receipts and/or emailed scanned receipts can now be associated with expense

reports as receipt images.

User defined rules can be setup to enforce receipt submission and reimbursement

thresholds in addition to highlight missing receipts for expense lines.

3.10.2.2. Duplicate Expense Detection

Duplicate Expense Detection Rules are now available to detect duplicate expense claims

aiding customers in decreasing administration costs by ensuring only reimbursement of

valid expense claims.

3.11.

Oracle Legal Entity Configurator3.11.1. Release 12.1.3

3.11.1.1. Enhanced Legal Addresses

In prior releases, when defining the address for a new legal entity, users could only select

from existing locations identified as legal addresses. Users can now select any existing

location as an address for a legal entity.



Oracle E-Business Suite Release 12.1.Release Content Document Oracle Loans 15

This feature has also been back-ported to following releases:


12.0.6 6116752:R12.XLE.A

12.1.1 6116752:R12.XLE.B

3.12. Oracle Loans

3.12.1. Release 12.1.2

3.12.1.1. Process Application Fees without Loan Approval

Loan application fee is a fee charged to process an application for a loan, such as a home

mortgage from a lender or mortgage broker. Loan application fees are charged to cover

some of the costs involved in processing the application including credit checks, property

appraisals and basic administrative costs. Such fees are often non-refundable regardless

of the outcome of the application review and are charged upfront.

Previously, in order for any loan fee to be processed, the loan application had to be

approved. This new feature allows processing and accounting for loan fees before theloan gets approved or rejected.

The fees now can be charged manually on an ad hoc basis or automatically based on a

certain event in the loan application lifecycle (loan origination, loan activation, loan

submission for approval).

3.12.1.2.

Ad-hoc Billing and Receipt Application

Borrowers receive their loan repayment bills when an automated process determines that

the next installment is due. This new feature allows users to manually select the next

installment and create a customer bill on an ad hoc basis. Users now also have an option

to create a loan without a schedule of installments and bill customers manually on an adhoc basis.

In addition, the process of applying customer payments to loans has been streamlined by

providing users an option to perform receipt application within the loan transaction

context, without the need to switch to Receivables.

A new system profile option (LNS: Allow to Bill and Apply from UI) has been

introduced to control user’s access to this feature.

3.12.1.3. Loan Forgiveness

The Loan Forgiveness feature allows users to create and manage loan forgiveness option

loan programs. By populating a Receivables Activity in the new system option LoanForgiveness Adjustment: Activity Name, loan forgiveness is enabled or disabled for the

loan products within the organization.

Loan forgiveness is applied at the individual loan level as a percentage of the loan

installment amount and can be modified throughout the loan’s duration. Loan

forgiveness details are visible for each individual loan via the Servicing Center:

Overview: Summary window. During billing, the forgiven amount is displayed and

accounted for as an adjustment on the customer invoice.



Oracle E-Business Suite Release 12.1.Release Content Document Oracle Payables 16

3.12.2. Release 12.1.3

3.12.2.1. Multiple Disbursements during Loan Servicing

In prior releases, direct loans could only be adjusted using multiple disbursements with

disbursement amount, percentage and a specific target date freeze before the approval,

activation or funding of the loan. Now, loan managers can perform adjustments to the

loan amount in active and multiple disbursements of the loan after the loan is activated,

funded or in the servicing stage.

Additionally, for Extended Repayment Schedule (ERS) loans, loan managers can now

add and convert additional receivables transactions to existing loans in the servicing

stage. Managers can also modify the outstanding amount of receivables or adjust the

receivables amount based on the payment terms.

3.13. Oracle Payables

3.13.1. Release 12.1.1

3.13.1.1.

Enhanced Withholding Tax Calculation for Brazil

Brazilian tax regulations require withholding taxes to be deducted at multiple business

event points such as recording and payment of invoices.

In prior releases, withholding tax was deducted either during validation or payment of

invoices. Oracle Payables has been enhanced to allow application of withholding taxes

both during invoice validation and payment.

3.13.1.2.

Discount Calculation Enhancements

Suppliers offer discounts for early payment. Early payment discounts can be fixed

monetary amounts or calculated on a percentage basis.

In prior releases, discounts could be defined in percentage terms only. Oracle Payables

now allows discounts to be specified in monetary amounts. When a percentage as well

as an amount is available, the higher or lower of the two can be specified for application.

3.13.1.3. Subcontractor Management for Engineering and Construction

Oracle Payables has been enhanced to automatically apply holds on supplier invoices

when the Pay When Paid or the PO Deliverable Control option is enabled on purchase

orders. During invoice validation, such holds are automatically released provided

authorizations have been recorded within Oracle Project Accounting or Oracle

Purchasing.

3.13.1.4.

Supplier Dispute Processing

Supplier invoices may be short paid to expedite dispute settlements. The Payables

Invoice Workbench has been enhanced to capture the invoice amount originally claimed

by the supplier and the reason for short payment.



Oracle E-Business Suite Release 12.1.Release Content Document Oracle Payables 17

3.13.1.5. Third Party Payments

Suppliers can specify a related trading partner to be paid on their behalf. The payments

made on behalf of suppliers to other trading partners are termed as third party payments.

Oracle Payables has been enhanced to record third party relationships and to process

third party payments. Withholding and 1099 processing continue to occur for invoicing

suppliers.

3.13.1.6.

Business Intelligence Publisher Support for Selected Payables Reports

The following Oracle Payables reports have been re-written utilizing the Business

Intelligence Publisher (BIP) tool. BIP based reports offer greater flexibility to end users

in changing report layouts and formats:

• Withholding Tax by Invoice Report

• Bills Payable Maturity Date Report

• Discounts Available Report

•

Payment Audit by Voucher Number

• Prepayments Status Report

3.13.2. Release 12.1.2

3.13.2.1. Replace Supplier Bank Accounts on Invoices

In today’s business environment, it is a common practice to change bank accounts. If

suppliers change their bank accounts, Oracle Payables can now automatically update all

unpaid and partially paid invoices with the new bank account information. When users

end date an existing supplier bank account and provide a new active bank account,

Oracle Payables will automatically update the remit-to bank account information on

unpaid and partially paid invoices. This streamlines transaction processing and prevents

the need to update each invoice manually.

This feature has been back-ported to 12.1.1 via the standalone patches:

6867725:R12.AP.B and 6615694:R12.IBY.B.

3.13.2.2. Change Taxes from Inclusive to Exclusive Online

The tax regulations in many countries require that certain types of taxes on invoices be

applied as inclusive or exclusive to the price of the good or service. This is common in

countries that report VAT, such as in the United Kingdom, where the VAT tax can be

treated as inclusive or exclusive depending on the type or price of the good or service.

Oracle Payables provides the flexibility to override the inclusive or exclusive nature of

taxes that default from the eBTax setup. While entering an invoice, users can change

taxes from inclusive to exclusive or vice versa to match the tax shown on the physical

invoice. This ensures more accurate invoice entry and tax reporting.



Oracle E-Business Suite Release 12.1.Release Content Document Oracle Payments 18

3.14. Oracle Payments

3.14.1. Overview

Oracle Payments provides a highly configurable and robust engine to disburse and

receive payment, and integrates with multiple products that require support for payment

processing. Oracle Payments processes invoice payments from Oracle Payables, bank

account transfers from Oracle Cash Management and settlements against credit cards and

bank accounts from Oracle Receivables. Oracle Payments provides the infrastructure

required to connect these applications and others with third party payment systems and

financial institutions.

3.14.2. Release 12.1.1

3.14.2.1. Single Euro Payments Area (SEPA) Support

The Single Euro Payments Area (SEPA) guidelines require that credit transfers be

executed using standard SEPA Credit Transfer initiation messages. These are XML

messages generated as per the ISO 20022 framework and conforming to SEPA credit

transfer schemes negotiated with banks.

Oracle Payments has been enhanced to support SEPA Credit Transfers. Messages are

initiated and formatted utilizing the existing disbursement framework.


7552541.R12:IBY.A.

3.14.2.2.

Paymentech Integration Certification

Paymentech is a leading Back End Processor (BEP) in providing financial settlement

services. Oracle Payments is certified with Paymentech for seamless transmission of

credit card, debit card and direct debit transactions.


6975269:R12.IBY.A.

3.14.2.3. Positive Pay File with Additional Parameters

The Positive Pay File report details payments made to specific trading partners. A new

Positive Pay File with Additional Parameters report has been introduced to include

previous payments and, optionally, voided check information.


6939650:R12.IBY.A.

3.14.3. Release 12.1.2

3.14.3.1. PA-DSS for Credit Card Processing

To ensure all payment type applications that interact with payment cards meet consistent

security standards, the Payment Card Industry (PCI) Security Standards Council

encourages and in some cases mandates that merchants use only PA-DSS (Payment

Application Data Security Standards) certified payment application software.



Oracle E-Business Suite Release 12.1.Release Content Document Oracle Profitability Manager 19

Certification applies to software applications that store, process, or transmit payment

cardholder data as part of an authorization or settlement process. This certification

reassures users that Oracle Payments is properly handling and securing sensitive

payment card information. Certification includes proper adherence with industry

accepted data storage guidelines, encryption algorithms, secured coding practices, and

secured transmission standards.

Oracle Payments customers benefit from the ongoing enhancements made to conform to

PA-DSS requirements. These PA-DSS enhancements are also available as standalone

patches to customers on Release 12.0 and 12.1.1.

3.15. Oracle Profitability Manager

3.15.1. Overview

Oracle Profitability Manager provides enterprises with a greater insight into the

profitability of current operations and empowers them with actionable information for

making decisions and driving improved profitability. As part of Oracle’s Corporate

Performance Management (CPM) suite, Oracle Profitability Manager is a comprehensive

solution for the calculation, analysis and reporting of profitability.

Oracle Profitability Manager was first released with Release 12. It is the integration of

two existing applications:

• Oracle Performance Analyzer (part of the Oracle Financial Services suite)

• Oracle Activity-Based Management (part of the E-Business Suite)

In Release 12.0, major emphasis was placed on maintaining all the industry leading

features and functions available in earlier versions of the Financial Services Applications

(OFSA), while simultaneously leveraging the power of the Oracle E-Business Suite. The

Profitability Manager application broadens the industry appeal of profitability analytics,

and repeats the success the legacy products had beyond financial services enterprises.

3.15.2. Release 12.1.1

3.15.2.1. Identification of Business Rules that Reference Disabled/Inactive Dimension

Members

Users manage metadata as a standard business process related to the construction and

maintenance of business rules with the Profitability Manager application. Over time,

users make changes to metadata like hierarchies and dimension members, and in some

cases "disable" dimension members to indicate that they are no longer active or no longer

used as part of the profitability calculations. A good example of this would be when acompany reorganizes, and some departments are transferred, combined or eliminated. In

this example, data for those "old" departments would not be used in future models.

To help the user understand how these metadata changes affect their profitability models

a new feature is introduced which indicates where disabled dimension members are used

in mapping rules, or in hierarchies. Users are provided a concurrent program that will

scan a set of business rules, and write out the results to tables that can be used for

reporting with the tool of the user's choice. In addition, a purge routine has also been

provided that allows the user to clean up data from previous runs.



Oracle E-Business Suite Release 12.1.Release Content Document Oracle Receivables 20

3.16.

Oracle Receivables

3.16.1. Release 12.1.1

3.16.1.1. Cash Application Work Queue

Receivables departments need to efficiently allocate and monitor the workload of receiptapplication personnel. Unapplied customer receipts can now be automatically assigned

to specific cash application specialists for further processing. This assignment is done

based on user defined rules by a new concurrent program: Assign Cash Application

Work Items.

Using the new Cash Application Work Queue workbench, specialists can efficiently

manage their workload, review unapplied receipts and take further actions on unapplied

receipts. The Cash Workload Review Report is now available to review and monitor the

current workload of assignees.

3.16.1.2. Enhanced Line Level Cash Application

Business operating in certain industries need to track balances and apply customer

payments at the invoice line level.

Oracle Receivables now maintains line level balances for all transactions originating

from sources enabled for line level operations. The Auto Lockbox matching routine has

been enhanced with an open call-out to invoke custom transaction line selection logic.

3.16.1.3. Enhanced Performance for High Volume Receivables Processing

Companies operating in industries such as telecommunications, retail, insurance and

utilities process large volume of invoices and receipts on a daily basis. Oracle

Receivables has significantly enhanced the performance and scalability of the followingkey batch programs by implementing parallel processing logic and fine tuning database

indexes:

• AutoInvoice Master Program

• Automatic Clearing for Receipts

• Automatic Remittances Master Program

• Lockbox Execution Program

3.16.1.4.

Golden Tax Adaptor Enhancements for Mainland China

All businesses operating in mainland China are required to use a government certified

tax application for VAT calculation, VAT invoice generation, and statutory tax

reporting. This system is referred to as Golden Tax. Golden Tax Adaptor provides a

seamless integration between Oracle Receivables and the Golden Tax system.

Golden Tax Adaptor now supports three additional VAT invoice types: special VAT

invoices, common VAT invoices, and special VAT invoices for waste and outdated

materials.



Oracle E-Business Suite Release 12.1.Release Content Document Oracle Receivables 21

Credit memo processing through Golden Tax Adaptor has been enhanced with the

following new features:

• Processing of on-account credit memos and credit memos referring to multiple

invoices

• China Tax Office notification number support for credit memos on Special VAT

Invoices

•

Validation rules to prevent export of credit memos with duplicate or incorrectly

formatted notification numbers

3.16.1.5. Business Intelligence Publisher Support for Selected Receivables Reports

The following Oracle Receivable reports have been re-written utilizing the Business

Intelligence Publisher (BIP) tool. BIP based reports offer greater flexibility to end users

in changing report layouts and formats.

• AR Reconciliation Report

•

Customer Open Balance Letter

• Incomplete Invoices Report

• Invoice Exception Report

• Receipt Analysis - Days Late

3.16.2. Release 12.1.2

3.16.2.1. Default Customer Bank Account Information on Unidentified Receipts

Auto Lockbox now derives customer bank account information based on the MagneticInk Character Recognition (MICR) number supplied in the lockbox data file. This

information is defaulted on unidentified receipts and can be manually associated with a

customer record for matching receipts in subsequent runs of Auto Lockbox

This feature has also been back-ported to 12.1.1 via standalone patch:

8422361:R12.AR.B

3.16.2.2. Enhanced Aging Report to Support Multi-Fund Accounts Receivables

Public sector companies and federal agencies often need to record receivables against

multiple operating funds on an invoice. Operating funds are represented as balancing

segments. In prior releases, Oracle Receivables aging reports could be used to monitorfund level balances only when an invoice impacted a single balancing segment.

Oracle Receivables introduces a new Aging 7 Bucket by Account -- Multi-Fund

Accounts Receivables Report. This report lists receivables balances regardless of the

number of funds associated with any invoice.

All other Oracle Receivables aging reports remain unchanged.



Oracle E-Business Suite Release 12.1.Release Content Document Oracle Subledger Accounting 22

3.17. Oracle Subledger Accounting

3.17.1. Release 12.1.1

3.17.1.1. Historical Data Initialization for New Reporting Currencies and Secondary

Ledgers

When setting up new secondary ledgers or reporting currencies with an existing primary

ledger for new local or corporate reporting requirements, all historical transaction

accounting amounts and balances have to be initialized in these new ledgers/currencies

to ensure proper reconciliation with their primary ledger counterparts. Oracle Subledger

Accounting now provides a new concurrent program: SLA Secondary/ALC Ledger

Historic Update for this particular need. This program retroactively posts historical

transaction accounting data from the existing primary ledger to the newly created

secondary or reporting currency ledgers. Once this program is executed, reports and

inquiries will correctly display secondary ledger or reporting currency amounts.

3.17.2. Release 12.1.2

3.17.2.1.

Accounting Rules Detail Report and Enhanced Subledger Accounting OnlineInquiry

Oracle Subledger Accounting introduces a new Subledger Accounting Rules Detail

Listing Report to provide detailed information about accounting rules defined for a

subledger accounting method. The report can be submitted from the individual

subledger applications or from Oracle General Ledger. In addition, the report can be

submitted for custom applications registered within Oracle Financial Accounting Hub.

Users can now use the new report to easily review the following setup details:

• Subledger Accounting Method

• Journal Line Definition

• Journal Line Type

• Account Derivation Rule

• Journal Header Description

• Journal Line Description

The online Subledger Journal Entry page has also been enhanced with two new sections

to display the journal line definition and the journal line type used for generating anaccounting entry.

3.17.2.2. Accounting Data On-Demand Upgrade by Subledger

During the Release 12 upgrade process, customers can choose the time span for

converting historical accounting data to the new Subledger Accounting tables. There is

also a separate program that allows customers to extend the data conversion to older

accounting periods after the upgrade. This program runs for all subledgers at the same

time.



Oracle E-Business Suite Release 12.1.Release Content Document Oracle U.S. Federal Financials 24

3.19. Oracle U.S. Federal Financials

3.19.1. Release 12.1.2

3.19.1.1. Enhanced Delinquency Processing

Federal delinquency processing features have been enhanced to provide additional

configuration options including the ability to configure:

• Finance charges to be assessed on other finance charges

• Finance charges once for an installment invoice or on each installment for an

installment invoice

• The source of the distribution for finance charges (for example, from the original

invoice distribution or from the transaction type).

3.19.2. Release 12.1.3

3.19.2.1. Updates to Year-End Close Processing

The Federal Year End Close process has been modified to add a Closing Method toaccommodate configuration of Pre-Closing as well as Closing accounting entries.

Closing Method and Closing Period have been added as parameters to the Year End

closing process.

3.19.2.2.

Extract File Changes for Central Contractor Registration (CCR)

CCR enhancements include:

• Placing specific named holds (instead of supplier site holds) on invoices and

scheduled payments when the supplier’s registration status becomes inactive,

and automatically releasing the hold when the registration becomes active

• Masking the CCR account user identifier and password information on

concurrent request parameters and log file output

• Providing validation on the Payables Assignment page to prevent the association

of a CCR vendor to an existing supplier when their TINS do not match

• Updating unpaid invoices with the latest bank account information from

CCR when the bank information has changed for a CCR registration.

3.20.

Tax, Legal and Regulatory Updates

3.20.1. Overview

The following section provides information about the updates introduced to address tax,

regulatory and legislative changes.

Note: Most of the following updates have also been back-ported to previous releases via

standalone patches. Please refer to the sections below for information on patch numbers



Oracle E-Business Suite Release 12.1.Release Content Document Tax, Legal and Regulatory Updates 25

3.20.2. Release 12.1.1

3.20.2.1. Brazil: Fiscal SPED – Support for Fiscal Book Generation and Electronic

Invoice Integration

Support for Fiscal Book Generation

The Brazilian Fiscal SPED requires organizations to submit a set of legal reports inelectronic format to tax authorities. Specific additional information is required to be

provided in these reports. Oracle Financials for Latin America provides new and

enhanced functionality to capture the additional required information.

The following new windows have been introduced to support SPED:

• Electronic Invoice Attributes

• Electronic Invoice Status History

The following existing windows have been enhanced:

• Tax Codes and Rates

• Supplier Sites

• Customer Sites

• Transaction Sources

• Order Management Deliveries

• Order Management Carriers

•

Transaction Types

• Inventory Master Items

• Item Templates

Support for Electronic Invoice Integration

Per Brazilian tax law, account receivable invoices can only be billed to a customer

after tax authority approval.

In this release, Oracle Financials for Latin America provides support for electronic

invoice integration for tax authority approval. The tax authority approval status is used

to control downstream business process such as invoice printing, collection, etc. for the

receivables invoice. In order to prevent billing customers with an invalid document

status, only receivable invoices with a status of Finalized or Contingency are processed.

Invoices with a status of Sent, Error, Cancelled, Rejected and Obsolete are placed on

hold until the electronic invoice status is updated to Finalized or Contingency.

This update has also been back-ported to the following release:




Release Patch Number My Oracle Support Knowledge

Document

12.0 7000001:R12.JL.A 753705.1 – Electronic Invoice

Standards

876892.1 – Electronic Invoice

Integration Support

3.20.2.2.

Japan: Asset Depreciation Enhancements for Japan Tax Reform Act of 2007

In order to stimulate and promote economic growth, The Ministry of Finance for Japan

has announced new tax reforms. The reforms introduced new rules for calculating

depreciation on fixed assets effective April 1, 2007.

Oracle Assets provides the following new features to support the new tax reforms:

• New depreciation methods and rates for depreciable assets acquired on or after

April 1, 2007

• New rates are added to the Straight Line Method

• 250% Declining Balance Method

• Extension of Depreciation feature for calculation of extended depreciation for

eligible assets (depreciable asset acquired on or before March 31st, 2007 and

depreciated up to earlier 95% limit)

• Enhanced reporting for compliance

• Enhanced Mass Changes feature by adding Salvage value and Final Depreciable

limit parameters

This update has also been back-ported to the following releases:


11.5.10 7427746

12.0 8706840:FA.A

3.20.2.3.

United Kingdom: Reverse Charge VAT

On June 1, 2007, the new Reverse Charge VAT rule became effective in the United

Kingdom. The Reverse Charge VAT involves inverting the tax liable party from the

‘Seller of Goods’ to the ‘Buyer of Goods’ under certain conditions for domestic

transactions within the EU countries.

Oracle Financials now supports this new VAT regulation by identifying reverse charge

VAT transactions and ensuring that appropriate tax rules are applied. A Reversed

Charge Sales report is now available to list effected invoices. A standard message is

printed on all reverse charge sales invoices.




This update has also been back-ported to 12.0 via Oracle Financials Release Update Pack

5. For additional information, please refer to My Oracle Support Knowledge Document

565898.1.

3.20.3. Release 12.1.2

3.20.3.1.

Argentina: Turnover Tax Withholding/Perception Regimes

The Tax Authority of Buenos Aires province has determined through regulations DN

70/07 and DN 74/07, that tax rates for its Turnover Withholding and Turnover

Perception regimes would be defined per individual contributors (i.e. taxpayer id),

therefore modifying existing withholding and perception tax rate determination, which

was a general rate applicable for all taxpayers.

Each Perception agent (i.e. seller) and Withholding agent (i.e. buyer) will be required to

download from the tax authority’s website a monthly flat file with applicable tax rate

information for each contributor (taxpayer id).

In this release, Oracle Financials for Latin America provides new and enhanced

functionality to enable its customers to upload the government’s monthly data file andupdate the corresponding tax assignments per taxpayer id (i.e. Withholding rates for

suppliers in Oracle Payables and Perception rates for customers in Oracle Receivables)

and ultimately calculate proper withholding and perception taxes on Payments and

Receivables transactions, thus complying with the current legal regulations.

The following functionality is provided:

• Infrastructure and Guidelines to Setup and Upload Monthly Data File

• Program to Validate Data prior to Data Upload

• Program to Update Monthly Turnover Perception Tax Assignments per Taxpayer

id (Receivables)

• Program to Update Monthly Turnover Withholding Assignments per Taxpayer id

(Payables)

• Program to Update Withholding Rates for Unpaid Invoices (Payables)

• Report to List Uploaded Data for Verification Purposes

The following windows have been enhanced:

• Withholding Taxes

•

Supplier Withholding Applicability

The following concurrent program has been introduced:

• Argentine Turnover Tax Data Upload Verification Report

The following reports can be generated based on parameters entered in the above

concurrent program:

• Argentine Turnover Temporary Data Upload Verification Report




• Argentine Turnover Data Upload Validation Report

• Argentine Turnover Final Data Upload Verification Report


Release Patch Number My Oracle Support

Knowledge Document

11.5.10 7368540 733928.112.0 7685123:R12.JL.A 778917.1

12.1.1/12.1.2 8427989:R12.JL.B 878707.1

3.20.3.2. Brazil: Federal SPED Regulation - Accounting SPED

The Brazilian Accounting SPED, also known as ‘Escrituração Contabil Digital – ECD’,

requires companies to submit their accounting data to the Federal Tax Authority on a

monthly or yearly basis in a flat file format.

In this release, Oracle Financials for Latin America provides new and enhanced

functionality to capture the required information, extract and format electronic

accounting books.

Oracle supports monthly generation of the following bookkeeping types:

• Bookkeeping Type G

Bookkeeping Type G is applicable when the company stores detailed accounting in

Oracle General Ledger. It is the preferred bookkeeping type by Federal Tax

Authority.

• Bookkeeping Type R

Bookkeeping Type R is applicable when a company summarizes accounting data inOracle General Ledger and keeps the accounting details in the sub-ledgers.

• Bookkeeping Type A

Bookkeeping Type A contains the detailed accounting for Bookkeeping Types R or

B. Users can drill down and retrieve detailed accounting information from AP and

AR sub-ledgers.

• Bookkeeping Type B

Bookkeeping Type B is specific for Financial Institutions such as Banks. It requires

additional registers to be reported. This book may also have an auxiliary

bookkeeping Type A associated to it.

New User Interface screens introduced to support Accounting SPED are:

• Participants

• Participant Relationships

• Bookkeeping Types

The following pages have been enhanced to capture new data elements:




• Legal Entities

• Establishments

• Legal and Tax Registrations

• Contacts Information

The following programs have been introduced:

• Brazilian Accounting SPED Data Extract Program

• Brazilian Accounting SPED Text File Generation Program

• Brazilian Accounting SPED Financial Statements Data Extraction



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12.0 8824610:R12.JL.A 878922.112.1.1/12.1.2 8692514:R12.JL.B 878922.1

3.20.3.3. China: Golden Tax Adapter Enhancements

In this release the EBS Golden Tax Adaptor functionality has been expanded to support

the merging of multiple Golden Tax (VAT) Invoices, capturing bank and customer

information in simplified Chinese for use in the Golden Tax (VAT) invoices, and the

ability to support sales discounts on Golden Tax (VAT) invoices.

1. Merge multiple Golden Tax (VAT) invoices

Users can consolidate multiple invoices for the same customer into a single VAT

invoice within limits as defined in the System Options.

2. Capturing bank and customer information in simplified Chinese

Users can use an Alternate Name to enter, capture and print the customer and

bank information in Chinese on issued VAT invoices.

3. Sales discount

Users can export sales discount lines from the EBS Golden Tax Adaptor into the

Golden Tax system. Users can import credit memo data with merged discount

amounts back into Golden Tax Adaptor.

3.20.3.4. Italy: Annual VAT Extract

The Annual VAT declaration is a legal requirement in Italy. All Italian legal entities

must complete the Annual VAT declaration according to the specifications of the Italian

fiscal authority.

This release provides a standard extract which contains selected VAT details to assist

Italian customers to submit their Annual VAT declaration in their functional currency as




well as non-Italian customers to reconcile their VAT registers for their statutory

reporting needs.

3.20.3.5. Italy: Annual Withholding Extract

The Annual Withholding declaration is a legal requirement in Italy. All legal entities

must complete the fiscal template according to the specifications of the Italian fiscal

authority.

This release provides a report that may be printed annually for each legal entity. Thereport lists the withholding tax and the tax identification information related to partially

and fully paid payables transactions. This report is consistent with the information listed

on Italian Withholding Tax Letters.

3.20.3.6. Japan: Enhanced Support for Tax Reform 2007/2008

Japan’s Ministry of Finance announced new tax reforms for the calculation and reporting

of fixed asset depreciation.

Oracle Assets provides the following new features to support the Japanese tax reform

legislation:

1.

Enhanced Legacy Data Migration for Japan Tax Reform

Prior 2007 Japan Tax Reform product enhancements allowed new assets added

into the system to be assigned the new depreciation methods. However,

customers also need the ability to easily assign existing assets to the new

mandated methods.

The following functionality enables users to migrate legacy assets:

• The Asset Workbench now allows addition of assets already in Extended

Depreciation and displays additional asset information for these assets.

•

Mass Additions now permits the addition of existing assets in Extended

Depreciation and also displays additional asset information.

• The Asset Integrator (Oracle Web ADI) has been modified to enable the

addition of existing assets in Extended Depreciation.

• The Extended Adjustments program has been modified to support

migrated depreciating assets in Extended Depreciation.

2. Enhanced What-If Depreciation Analysis for Japan Tax Reform

The What-If Depreciation program has been enhanced to use 2007 Japan Tax

Reform methods:

• New JP 250 DB methods introduced with the Japan Tax Reform.

• The new JP STL EXTD method for assets currently depreciating under

Extended Depreciation.

3. Depreciable Assets Tax Report for Japan




Previously, users of the Japan Depreciable Assets Tax Report could only register

and provide descriptive information for a single company. The report has now

been enhanced to handle multiple companies.

The Japan Depreciable Assets Tax Report contains the following modifications:

• Users can specify information for multiple companies linked to specified

asset book(s).

•

Additional reference information is enterable in the report.

• The report layout format conforms to the legal standard.

This update has also been back-ported to 12.1.1 via the standalone patch:

8706842:R12.FA.B.

3.20.3.7. Spain: VAT Legislation: Modelo 340 Informative Declaration

The new Modelo 340 Informative Declaration includes Issued Invoices, Received

Invoices, Investments and Certain Intra EU transactions. This new 2009 declaration

accompanies the VAT Settlement ("Liquidación del IVA") and does not replace an

existing declaration ("Modelo"). This settlement can be performed monthly or annually.

In this release, a new file is available in accordance to the new legislation.



11.5.10 8535502

12.0 8635531:R12.JE.A

12.1.1/12.1.2 8635531:R12.JE.B

3.20.3.8.

Spain: VAT Legislation: Modelo 347 Domestic Transactions Turnover Report

Changes

New guidelines include changes to the types of companies that are required to submit

Modelo 347. These guidelines were issued on December 30th, 2008, and are applicable

as of January 1st, 2009: Order EHA/3787/2008, of 29 of December, (BOE 30-diciembre-

2008). A series of updates and additional fields have been applied to the layout of

Modelo 347 report in accordance to the legislative requirements.



11.5.10 7564728

12.0 8635531:R12.JE.A

12.1.1/12.1.2 8635531:R12.JE.B

3.20.3.9. Spain: VAT Legislation: Modelo 415 Canary Island Turnover Report Changes

Companies operating in the Canary Islands and subject to the Canary Islands Tax

Regime are required to submit an IGIC Modelo 415 file. A series of updates and

additional fields have been applied to the layout of Modelo 415 in accordance of the new

legislative requirements.






11.5.10 8294328

12.0 8635531:R12.JE.A

12.1.1/12.1.2 8635531:R12.JE.B

3.20.3.10. Spain: Changes to Taxpayer ID Validation

In 2008, Spain issued new legal guidelines to allow Taxpayer ID’s to begin with alphabecharacters of “Y” and “Z” and specific logic to derive the correct format. Prior to this

change, Spanish Taxpayer ID’s were legally allowed to only begin with alphabet

characters up to “X”. This release supports the revised Spanish Taxpayer ID validation.

For additional information, please refer to My Oracle Support Knowledge Document:

759473.1, 760262.

3.20.3.11. United Kingdom: Support for Revaluations and Impairments per Statement

of Recommended Practice for United Kingdom Local Authority Accounting

The Joint Committee for CIPFA/LASAAC published “A Statement of Recommended

Accounting Practice (SORP) 2006”. The SORP recommends how fixed assets owned by UK Local Authorities are to be revalued starting from April 1, 2007.

Revaluation and impairment functionality in Oracle Assets now addresses the fixed asset

revaluation requirements as per SORP.

• Revaluation Reserve Accounting for – Net Book Value

• Generating Depreciation Neutralizing Entries

• Revaluation of Donated and Discounted Assets

• Impairment Classification Types

• Reason and Purpose Descriptions

• Generating Impairment Loss Neutralizing Accounting Entries

• Revaluations Directly Related to Prior Impairments

• Generating Asset Decommission and Disposal Entries.


8706842:R12.FA.B.

3.20.3.12.

U.S. Federal: New FACTS II Edit Checks and File Layout Changes

Closing Validation Edit 13 and Reclassification Edit 14 rules have been added as

configuration options for FACTS II processing in accordance with Treasury FMS

guidance. Additionally, the FACTS II Edit Check Detail Report has been modified to

include the status and supporting detail for these edits.



Knowledge Document





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12.0 9351569.FV.A 875303.1

12.1.1/12.1.2 9351569.FV.B

3.20.3.13. U.S. Federal: Enhanced Central Contractor Registration (CCR) Processing

CCR processing has been enhanced to process the BPN extract v4.07 files. Theseextracts contain unlimited Business Types, NAICS, SIC, PSC and FSC Codes, as well as

NAICS exception and SBA Certification Data. The CCR Vendors pages have been

updated to display this information.

3.20.3.14. Global: Support for Asset Impairment in Accordance with International

Accounting Standard 36

IAS 36 addresses financial accounting and reporting for impairment of assets. The

provisions provide that assets should not be carried at more than their recoverable

amounts. The Standard requires entities to carry out impairment tests for all their

tangible and intangible assets, other than assets in certain specified categories (e.g.

inventories, construction contract assets, financial assets and non-current assets

classified as held for sale). IAS 36 requires companies to measure an asset's recoverable

amount (the higher of the asset's or cash generating unit's fair value, less costs to sell, and

its value in use) and compare it to the book value. Oracle Assets now calculates and

generates asset impairments and the appropriate General Ledger journals in accordance

with IAS 36 guidelines.


8706842:R12.FA.B.

3.20.3.15. Global: Year End Closing Process

Selective country legislators stipulate that the year-end closing journals and year-

beginning opening journals are to be created using the net balance of each account.

The Close Process: Create Balance Sheet Closing Journals program and Close Process:

Create Income Statement Closing Journals program in General Ledger have been

enhanced to support this legal requirement. Using the new Net Closing Balance Journal

option in the Accounting Setup Manager, users can now generate the appropriate year-

end closing journals and year-beginning opening journals.

3.20.4. Release 12.1.3

3.20.4.1.

Argentina: Support for Argentina Simplified Regime (Monotributo)

The Argentine Fiscal Authority (Resolution 2616), introduced a new Withholding

Regime for Income Tax and VAT application to Simplified Regime Contributors (a.k.a.

Monotributista). Effective January 1, 2010, the new regime is effective on any payment

made to a Monotributista that has reached an annual threshold-billing amount as pre-

defined by the government.

The extended withholding solution for Argentine has been enhanced to address these

changes. Suppliers can now be defined using withholding types and rates applicable to

simplified regimes.

https://metalink2.oracle.com/metalink/plsql/f?p=130:14:8347616719922180146::::p14_database_id,p14_docid,p14_show_header,p14_show_help,p14_black_frame,p14_font:NOT,875303.1,1,1,0,helvetica

https://metalink2.oracle.com/metalink/plsql/f?p=130:14:8347616719922180146::::p14_database_id,p14_docid,p14_show_header,p14_show_help,p14_black_frame,p14_font:NOT,875303.1,1,1,0,helvetica




With these changes, users now can:

• Identify suppliers who are Monotributistas

• Verify supplier’s billing information against fiscal authority thresholds

• Analyze information through the Monotributistas Billing vs. Threshold

Verification Report

•

Automatically enable Simplified Regime applicability to Monotributistas that

meet the threshold.



Knowledge Document

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12.0.5 9112951:R12.JL.A 987131.1

12.1.1/12.1.2 9112951:R12.JL.B 987131.1

3.20.4.2. Belgium: Annual VAT Report File Format v1.3

Effective from January 2010, the new v1.3 file format has replaced the current v1.2 file

format of the Belgian Annual VAT Return File.



11.5.10 9249589

12.0.5 9480859:R12.JE.A

12.1.1/12.1.2 9480859:R12.JE.B

3.20.4.3. Brazil: Support for Brazilian Electronic Collection Document Process (DDA)

Effective October 2009, Oracle Financials for Latin America introduced two newattributes in the Collection Document Window and in the Import Collection Documents

program to support the Brazilian Authorized Direct Debit (DDA) system:

• Collection Document Barcode: The Collection Document Barcode is required

for the Electronic File Transfer. This mandatory record speeds up the data entry

of manually collected documents and is now a required field in the Standard

Collection Document.

• Electronic Collection Document Flag: The Electronic Format (Y/N) flag

identifies if the respective collection document is electronic (Y) or standard (N).



Knowledge Document

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12.0.5 9319746:R12.JL.A 987749.1

12.1.1/12.1.2 9319746:R12.JL.B 987749.1




3.20.4.4. China: Support for Version 2 of the China Accounting Software Data

Interface Standard

The China National Audit Office (CNAO) has defined a new version of their accounting

auditing filing standard, known as the China Accounting Software Data Interface

Standard. The new standard requires a number of XML-based reports, using data

primarily from the General Ledger, Payables, Receivables, Assets, and Payroll

modules. It is currently required for state-owned enterprises and public sector

organizations.

3.20.4.5. India: Enhanced Value Added Tax (VAT) Functionality to Support Flexible

Recovery Schedule for India

Oracle Financials for India now provides the flexibility to use VAT recovery schedules

and percentages to derive the tax installments and dates to claim or recover VAT on

capital goods.

3.20.4.6. India: Value Added Tax (VAT) Statutory Accounting and Reporting for Non-

Shippable Items

Users can now have the ability to generate Value Added Tax Invoice Numbers, perform

VAT Repository updates, and account for VAT taxes for customer billable non-shippable items on sales orders.

3.20.4.7. Israel: Israel VAT Report Enhancement

Effective January 2010, new legislation was introduced affecting companies issuing

periodic VAT declarations in Israel. The legislative changes include:

• Enhanced tax reporting boxes for declared input and output taxes

• New electronic flat file format declaration related to 835

•

Aggregated reporting of taxable sales transactions below the official publishedlimits

• Monthly percentage or amounts limits for tax reclaimed on Petty Cash

transactions

• Mandatory declaration of export trade transactions (Rshimon Export)

The EMEA VAT Reporting Setup has been updated to capture monthly aggregation and

declaration limits for Israel.

The following Israeli reports have been enhanced to incorporate the legislative changes:

• Israeli VAT AR Detail Report

• Israeli VAT AP Detail Report

• Israeli VAT Summary Declaration to Tax Authorities

• Israeli VAT File Generation Related to 835






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12.0.6 9241039:R12.JE.A 981126.1

12.1.1/12.1.2 9241039:R12.JE.B 981126.1

3.20.4.8.

Israeli: Withholding Tax File – 856Legislative amendments to the Income Tax Ordinance require updates to the

‘Withholding Tax File – 856’. These amendments impact the existing ‘Israeli

Withholding Tax File to Tax Authority’ report.

In summary, the amendments are as follows:

• The existing Row 60 has been updated. New fields ‘Tax Year’, ‘Supplier Type’

and ‘Explanation for the Tax File in IRS’ have been added to this row.

• The existing Row 70 has been updated. New fields ‘Foreign Suppliers Total

Payments Paid by Bank’ and ‘Foreign Suppliers Total Withhold Amounts Paid

by Bank’ have been added to this row. Positions 53 to 101 are filled out withspaces.

• A new row (Row 80) has been added to the file. This row has 216 positions and

is composed of 12 lines, one line per each month of the year.

The following data is also generated as part of row 80:

• IRS Deduction File Number, Reporting Type Code, Tax Year, Period, Number

of Reported Suppliers, Total Payments, Total Withholding Tax, 155 spaces and

the constant ‘80’.



12.0.5 9253606:R12.JE.A

12.1.1/12.1.2 9253606:R12.JE.B

3.20.4.9. U.S. Federal: Extract File Changes for Central Contractor Registration

(CCR)

CCR processing has been enhanced to process the BPN extract v4.09 files. The extracts

contain additional NAICS information, as well as the Excluded Parties List System(EPLS) status. The CCRXML request version number has been updated to 2.10. The

CCR Vendors pages have also been updated to display the additional information.

3.20.4.10. U.S. Federal: Regulatory Updates to Statement of Budgetary Resources

The setup and concurrent process for the following Federal Financial Statements have

been modified to align with OMB Circular A-136 Revised (dated June 10, 2009) as well

as USSGL Fiscal Year 2010 crosswalk attributes:

• Statement of Budgetary Resources




• Statement of Changes in Net Position.

3.20.4.11. U.S. Federal: Regulatory Updates to SF-133 Report

The setup and concurrent process for the SF 133, Report on Budget Execution, has been

modified to align with OMB Circular A-136 Revised (dated June 10, 2009) as well as

USSGL Fiscal Year 2010 crosswalk attributes.



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3.20.4.12. Global: European Community VAT Changes for 2010

Effective January 1, 2010, the European Union (EU) introduced changes related to Value

Added Tax (VAT) to modernize and simplify the rules for cross-border supply services

and tax recovery. Business-to-business supply of services will now no longer be taxedwhere the supplier is located but will be taxed where the customer is situated. The

changes also introduced new reporting requirements.

Oracle Financials has been enhanced to address the new VAT changes by providing the

following features:

• Identify the intra EU service transaction lines and display them on the European

Sales Listing report

• Print standard legal messages on sales invoices.



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9123675:R12.BPA.B

974979.1

1107453.1



Oracle E-Business Suite Release 12.1.Release Content Document Oracle Property Manager 38

4.

New and Changed Features in Real Estate Management

4.1.

Oracle Property Manager

4.1.1. Overview

Oracle Property Manager is the cornerstone of the real estate management solution

provided by Oracle. Whether you are a corporate, commercial, or retail operation, Oracle

Property Manager provides a comprehensive solution for managing your real estate

portfolio efficiently. Oracle Property Manager streamlines space management and lease

administration, and maximizes the value of your real estate by:

• Reducing costs and identifying new revenue opportunities

• Minimizing contractual and financial risk

• Providing data transparency

4.1.2. Release 12.1.1 Leasing Features

4.1.2.1. New Lease Statuses

Two new statuses have been introduced for leases. The new statuses are ‘Lease

Ordered’ and ‘Signed’. These statuses are available when the lease approval status is

‘Draft.’ When a lease has a status of Lease Ordered or Signed, schedules and items are

created for any one-time payments. This allows users to create invoices or make

payments from the lease, for terms with frequency of one-time only, before the lease is

finalized. Users can use this new functionality for deposits or other payments that may

be required before a lease is finalized.

4.1.2.2.

Lease Extension Enhancements

When the status is changed to Month-to-Month or Holdover and an extension date

entered, the following things will now be done automatically:

• Recurring payment terms that end on the lease termination date will be extended

to the new extension date.

• Users can choose to have variable rent and rent increase agreements extended.

This is described further in the sections on Variable Rent and Rent Increase

enhancements.

• Extensions of terms and agreements can be rolled forward month by month using

a new concurrent process.

• The system extends existing normalized payment terms differently depending on

the lease status. If the user changes the status from Active to Month-to-Month or

Holdover, the system extends a normalized payment term ending on the old lease

termination or extension date by adding a new non-normalized term rather than

by changing the end date of the existing term. If the lease is later placed back in

Active status, the term will be extended by addition of a new normalized term

beginning on the amendment commencement date.




4.1.2.3. Tenancy Extension and Contraction

When the user extends or contracts a lease, tenancy records (records on the locations tab

of the lease) will be extended or contracted as well, as appropriate.

4.1.2.4. Assignment Occupancy Percent Determined by Attribute on Tenancy

A new field on the lease locations (tenancy) tab, Assigned % Area: determines the %

Area value on the Customer Assignment, that is, it will determine what percentage of the

location area is occupied by that customer. The default will be 100%

4.1.2.5. Multiple Schedules for Same Schedule Day

Oracle Property Manager can create a new draft schedule, if needed, for a date with an

existing approved schedule. This means you can create a new term with the desired

schedule day in all cases

4.1.2.6.

Prorating the Billing/Payment Amount based on a New Start Day Field

A new field has been added to the Lease form to capture the Year Start Date for

Prorating. Based on this field, the Schedule Start Date is determined considering the

period in which the Term Start Date falls into.

4.1.3. Release 12.1.1 Variable Rent Features

4.1.3.1.

Breakpoint Flexibility

Complete flexibility in setting up line items and breakpoint definitions has been

introduced. With this feature, users can:

• Set up complex agreements with changes to breakpoints, rates, breakpoint types,

line items, etc., occurring on any date, any number of times over the span of the

lease.

• Enter line item and breakpoint details with any start and end date, not restricted

to sales year start and end dates.

4.1.3.2. Updating Breakpoints

Users can now change breakpoint definitions at any time, regardless of whether variable

rent has been calculated and approved. To respond to amendments or to correct data,

users can change most parts of a variable rent agreement. If the changes affect rent that

has been approved, the application will create adjusting terms.

4.1.3.3.

Natural Breakpoint Enhancements

When the terms that form the basis for a natural breakpoint change, whether because of a

rent increase or because a user added or ended a term, the system now automatically

recalculates the natural breakpoints. The user can recalculate the variable rent; and if the

changes affect rent that has been approved, the application will create adjusting terms.

Users now select terms to form the basis for natural breakpoints using a new attribute on

the term, allowing complete control over which terms are to be included.




Users can now have rent increases, selectively, included in the natural breakpoint basis

as the increases are assessed.

4.1.3.4. Early Termination of Agreement or Lease

The user can now end variable rent agreements as of any date, either directly or by

terminating a lease. The system will perform any recalculations necessary if variable

rent has already been paid for affected periods and will create adjusting and/or reversing

terms.

4.1.3.5. Extension of Variable Rent Agreements

The user can now extend the length of variable rent agreements, or have the system

extend the agreement automatically when a lease is extended. The user also chooses

whether to have the system automatically extend the latest breakpoint definitions when

the agreement is extended or to manually enter the breakpoint definition detail for the

extension period.

4.1.3.6. New Calculation Methods

Two new calculation methods have been introduced for Variable Rent.

• Year-to-Date. The system determines overage by comparing the cumulative

breakpoint with the cumulative sales (or other volume).

• True Up. The system calculates variable rent periodically through the year with

a non-cumulative method and then does a True Up calculation at the end of the

year (or other appropriate period).

4.1.3.7. New Partial Year Calculation Methods

Several new methods (in addition to the existing Standard Proration) have been

introduced to calculate variable rent in partial years at the beginning or end of an

agreement.

• First Year. A partial first year variable rent is calculated based on the first 12

months of sales, effectively using some sales from the second year as proxy for

the missing months in the first year. The resulting rent is prorated based on the

actual length of the first partial year.

• Last Year. This is the equivalent of the First Year method, applied to partial last

years.

• First Year / Last Year. If this Partial Year Method is selected, both the First

Year and Last Year methods will be applied.

• Combined Year with Breakpoint Proration. The first partial year is combined

with the second year. For cumulative and year-to-date methods, breakpoints and

volumes continue to accumulate for more than 12 months. The breakpoints are

effectively ‘annualized’ because the period of breakpoint accumulation matches

the period of volume accumulation.

• Combined Year without Breakpoint Proration. The first partial year is combined

with the second year. A blended annual breakpoint is calculated for the

combined period, converted to a 12-month value. This is used as the basis for




breakpoints for all methods. Since the combined year is longer than 12 months,

and the sales are accumulated for that longer period, the breakpoint

accumulation is not matched to the volume accumulation and the breakpoint is

not, in effect, annualized.

• No Proration. The breakpoints are used as entered, without proration. There is

no interaction or combination between values in the first partial year and the

second year.

4.1.3.8. Month-to-Month Roll Forward of Variable Rent Agreements

If a lease is in Month-to-Month status, the user can choose to automatically extend the

variable rent agreement with each monthly roll-forward of the Month-to-Month

extension.

4.1.3.9. Enhancement to Cumulative Calculation Method

When the overage rate for calculation of variable rent changes mid-year, accumulation of

volume recommences. Breakpoints are prorated to the length of the ‘cumulative cycle’

determined by sales year end dates or rate changes.

4.1.3.10. Allowances and Abatements

There are a number of enhancements related to allowances and abatements. Users can:

• Create multiple allowances with effective dates.

• Specify whether allowances or abatements are to be applied first.

• Select terms for recurring abatement at the time that agreements are created.

• Roll forward recurring abatement selections automatically and have the system

apply abatements automatically as part of the variable rent calculation process.

• Enter amounts for ‘Fixed Abatement.’ This is a new type of abatement. A fixed

abatement is an amount entered by the user to be applied as abatement for each

invoice period, much like the system applies the amount of recurring abatement

terms each invoice period.

4.1.3.11. Carry Forward of Excess Abatement as Negative Rent

Users can now control through an agreement parameter whether excess abatement

amounts are treated as negative rent.

4.1.3.12.

Constraints

Users can now set start and end dates for constraints for the life of the agreement rather

than setting them up for each year.

4.1.3.13. Updating Volumes

Users can now update previously entered volume amounts through the Variable Rent

Gateway, where previously the only way to do an adjustment was by entering an

additional volume record (with a positive or negative adjusting amount).




4.1.3.20. Processing by Property

Property has been added as a parameter to the concurrent process for calculation of

variable rent so that users can now select agreements by property for batch calculation.

4.1.3.21. Improved Variable Rent Report

An improved report has been introduced for reporting calculated variable rent.

4.1.4.

Release 12.1.1 Index Rent Features

4.1.4.1. Early Termination of Rent Increase Agreements

The user can now end rent increase agreements as of any date, either directly or by

terminating a lease. The system will create adjusting and/or reversing items as

necessary.

4.1.4.2. Extension of Rent Increase Agreements

The user can now extend the length of rent increase agreements, or have the system

extend the agreement automatically when a lease is extended.

4.1.4.3. Month-to-Month Roll Forward

If a lease is in Month-to-Month status, the user can choose to automatically extend the

rent increase agreement with each monthly roll-forward of the Month-to-Month

extension.

4.1.4.4. Index Multiplier

Users can now specify a multiplier to be applied for rent increases based on an index

value. The amount specified is multiplied times the calculated change in the index

amount and the rent is changed by the resulting value rather than by the actual index

change percentage.

4.1.4.5. Proration

The system will now prorate constraints on rent increase for partial years.

4.1.4.6. Term Length

One compounding rent increase calculation method has been changed so that rent

increase terms are created only for the length of the assessment period rather than to the

end of the lease. This is appropriate for this method so that users now do not need to

manually change the term lengths.

4.1.4.7. Include/Exclude Option

A system option has been introduced that controls how terms are selected to form the

basis for rent increases. With previous functionality, all terms of the selected type were

selected by default for inclusion and users would deselect terms as appropriate. An

organization now can choose whether terms are included or excluded by default. Users

will still have complete control at the individual agreement level.




4.1.4.8. Recurring Backbill Terms

An option has been introduced that controls whether backbill terms are created as one-

time terms or as recurring terms. If they are created as recurring terms, the transaction

date for all resulting schedules is set to the same date, which is the date that the term was

approved.

4.1.4.9. Rent Increase Report

An improved report has been introduced for reporting calculated rent increases.

4.1.5. Release 12.1.1 Operating Expenses Features

This major new feature allows tenants to record in detail the lease clauses governing

payment of operating expense reimbursements or recoveries (also known as common

area maintenance expenses, etc.) to landlords. It also supports creating and changing

estimated payment terms and periodic reconciliations.

4.1.5.1. Create Operating Expense Agreement

Users can create an operating expense agreement for any lease clause governing the

payment of rent based on landlord operating costs or common area maintenance costs.

The agreement captures the key aspects of these agreements in a structured way that

enables consistent recording of agreements across the portfolio and also supports the

consistent and accurate reconciliation and ‘desktop audit’ of landlord reconciliation

statements. Aspects of agreements that can be recorded in a structured way include:

• All common ways of determining the pro rata basis for expense recovery, such as

occupied area with floor

• Multiple pro rata bases within a single agreement

•

Administration fees and anchor contributions

• Rules governing recovery of different expense groups or pools, within a single

agreement, such as whether a type of expense is subject to fees or cap

• All common methods for calculating caps and minimums

• Different reconciliation frequencies

• Whether rent is subject to tax

•

Stop amounts

• How reconciliation credits can be applied

• Standard expense group naming, for cross-portfolio comparisons

• Critical date rules, such as audit period and statement and payment due dates

• Extensive notes, by category




4.1.5.2. Enter and Maintain Estimated Payment Terms

If the agreement requires the tenant to make estimated payments based on landlord

budgets, the user can create the payment term through the Operating Expense

Agreement. Estimated payment amounts are often adjusted by landlords annually or at

other intervals. The user can enter new amounts through the Agreement and the system

will create the appropriate term, including a catch-up term if needed. A history of the

changing amount is thus captured and displayed, with percent change.

4.1.5.3.

Reconciliation

Reconciliation is created for each agreement for each reconciliation period. The user can

record information from the landlord reconciliation statement and use the reconciliation

screens as a ‘workbench’ for doing a desktop audit of the reconciliation statement.

Features include:

• Key entry, from the landlord reconciliation statement, of information not

available to the user from other sources, such as actual landlord expenses.

o Optional entry of the same items, in an ‘Expected’ column, if the user

has information that conflicts with the values presented by the landlord.

• Presentation by the system of information that is known based on the Operating

Expense Agreement, previous payments, and prior reconciliations, such as

calculated cap amount, agreement fee percentage and amount already paid as

estimated payments.

o Optional entry of the same items in the ‘Statement’ column, if the

amounts on the landlord statement are not the same as expected.

• Detailed presentation of the operating expense obligation calculation, in side-by-

side layout, showing the values from the landlord statement next to the values

expected by the user. The calculation includes caps, fees, contributions,

occupancy adjustments and stops, pro rata share calculation, and prior payment

amounts.

• Presentations of the percent change over the prior period for each expense group

the total landlord expense, and the tenant share of expenses.

• Printable version of the detailed reconciliation analysis with side-by-side

comparison.

• Simple creation of reconciliation payment term based on the bottom line of the

reconciliation analysis, or simply the payment due amount on the landlord

reconciliation statement.

• Flexible expense year dates, or reconciliation period dates, so that

reconciliations can be done at irregular intervals if needed.

• Reconciliation notes and direct access to notes related to the agreement and to

prior reconciliations.

• Maintenance of critical dates specific to each reconciliation, such as audit period

end date.



• Tracking of reconciliation and audit status, and users responsible for each.

• Preservation of prior versions of a single reconciliation.

4.1.5.4. Operating Expense Agreement Dashboard

A dashboard presents agreements, reconciliations, and related payment terms that are

likely to need attention, based on user-configurable selection criteria. The dashboard

also has advanced query capability for searching for agreements, reconciliations and/or

payment terms.

Users can select existing objects for view or update, or can initiate creation of new

agreements, reconciliations or payment terms from the dashboard.