release 12 part 2

7/28/2019 Release 12 Part 2

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2007 Jeannie Dobney & Graham Goodwin GGC

eBusiness Tax

This is a new product in Release 12

Single point of control for transactionbased taxes

Schema ZX

Components include: SetUp Repository

Tax Engine (Services & Service Request Mgr)

Tax Record Repository

Tax Reporting Ledger

Refer to

Oracle E-Business Tax Implementation Guide

Oracle E-Business Tax User Guide

Especially useful is Chapter 4 of the Implementation Guide which provides an

example set-up of UK VAT


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Tax SetUp

Oracle eBusiness Tax provides these seeded responsibilities:

Tax Manager. Assign this responsibility to users who will set up and maintain taxconfiguration data. The tax manager responsibility is the responsibility with thehighest level of access to E-Business Tax functionality. If you want to include the

GL Tax Options window, you must assign a data access set to the GL: Data AccessSet profile option under the Tax Manager responsibility.

Tax Administrator. Update and assign this responsibility to users who will provideE-Business Tax technical setup and support services. You can update thisresponsibility according to the duties of each tax administrator user.

Oracle Tax Simulator. Assign this responsibility to users who test tax setups withthe Oracle Tax Simulator.

You can also set up new E-Business Tax menus and responsibilities according toyour requirements.


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Example: Simplified SetUp

Tax Regime: Australian GST

Tax: GST

Tax Statuses: Standard (& maybe Exempt?)

Tax Rates: 10%, 0%

Tax Rules:

- Determining Factor Class: Geography

- Class Qualifier: Partys Ship to Site


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Tax Regime


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Tax Regime: 1st Party LE

New jargon:

First party LE is the LE representing your / the implementing company

Configuration owner: an operating unit either uses the tax profile of its parent LegalEntity (the global configuration owner) OR maintains a separate tax set-up


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Define Taxes


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Tax Rates


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Tax Rules


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Tax Configuration CheckList


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Tax Reporting

The Tax Reporting Ledger consists oftax information recorded in each of therelated Applications (i.e. AP, AR, GL).

The tax extract simply copies the originalaccounting data from each application andstores it in an interface table withoutperforming any calculations or derivationson it.

The Tax Reporting Guide describes each of

the many columns (100s) in the singlereporting view ZX_REP_EXTRACT_V

Refer to Oracle E-Business Tax Reporting Guide


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Tax Reporting

Use reporting tools like XML Publisher orRXi Reporting (or Reports) to publish data.

Reports can be at Legal Entity, Ledger orOperating Unit level.

Standard reports (that can be copied andmodified) include: Tax Register

Tax Reconciliation

Tax Reconciliation by Taxable Account

(appears suited to VAT tax returns / audits) VAT exception report

Refer to Oracle E-Business Tax Reporting Guide (especially chapter 2).

Note: Readers may also find the following paper from the OAUG archive helpful:

Oracle's new Financial Tax Register (Tax Reporting Ledger) a well keptSecret

by Hans Kolbe, Partner at Celantra Systems, Inc. and Chairperson of theMulti-National SIG Group of the OAUG

Whilst the paper refers to 11i10 it looks forward to Release 12 and is so wellpresented that it helps with gaining a conceptual understanding of this topic.


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Sub-Ledger Enhancements

Other Highlights:

File System reorganised to separate code andoutput files

Value Sets can be validated using PL/SQL

Integration Repository shipped with EBS(currently available at irep.oracle.com)

Request Submission from OAF pages

XML publisher further enhanced

XML Publisher has been further enhanced with nice little features like support for Microsoft Wordsdrawing functionality, the ability to display Carry Forward page totals and the ability to generate PDFbookmarks (for the Navigation pane).

Value Sets can now be validated using PL/SQL procedures and declarative references to KeyFlexfield combinations.

System Administrators in strictly audited environments will welcome the fact that the file system has

been reorganised so that code is now separated from log and output files, allowing these directoriesto be mounted separately if required.

Profile options can now be categorised to restrict access to more sensitive system controls.

The Oracle Applications Framework (OAF) now provides the ability to submit Request Sets fromOAF pages.

OAF personalisation import and export capabilities have also been enhanced so thatpersonalisations can be replicated across instances from the Functional Administrator responsibility,rather than via line commands.

Users can now also apply their own custom look and feel to Framework pages (i.e. skin them) so thateBusiness pages can be made to match your corporate web-site.

Personalization Improvements include support for Expression Language (EL) in UI properties. For

example, you can make a field read-only or hidden based on a value in another field.Web-Service users will welcome the provision of a comprehensive Integration Repository offering anon-line directory of Web Services, interfaces and integration points and acting as a service broker forthe eBusiness Suite.

The Applications Manager Dashboard has been enhanced to display additional performance metricsand security violation diagnostics.

iSetUp is a tool which has existed for some time but now seems to be really maturing. It supportsmigration of set-up through the implementation cycle and may be worth another look by consultantswho found it was not sufficiently robust in previous versions.

And finally those using Tutor will welcome the fact that Author can now be installed on a server andshared by multiple users.


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Oracle Payments

New central Payments engine i.e. newproduct (iPayment is obsolete)

Supports credit cards & electronic paymentmethods (integrated with FinancialInstitutions and payment systems)

Both O2C and P2P Apps use this, i.e.Receivables, Payables and Cash Mgt(Payroll still separate)

Can generate payments across

Organisations and Currencies Schema = IBY

Refer also to Oracle Payments User Guide and Implementation Guide.

(Hint: start with the User Guide because the Implementation Guide contains a lot of very technical detail onintegrating with third party electronic payment processing).

Users will notice big changes in Payables.

Most obvious is that the Payment workbench is now part of a separate application: Oracle Payments. This newcentral payment engine, processes invoice payments from Oracle Payables, bank account transfers fromOracle Cash Management, and settlements against credit cards and bank accounts from Oracle Receivables.Oracle Payments provides the infrastructure needed to connect these applications and others with third partypayment systems and financial institutions. In addition to new features, Oracle Payments offers functionalitypreviously released as Oracle iPayment, which will be obsolete as of R12. This centralisation enables SharedService Centres to efficiently centralise the payment process across multiple organizations, currencies, andregions.

Oracle Payments is also heavily integrated with XML /BI Publisher having 120 modifiable formats. This willmake flexible formatting of payment documents much easier and less costly.


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Payments: New Jargon Funds capture refers to the electronic

retrieval of funds, typically by a payment

system on behalf of the deploying company,from payers, such as customers, who owedebts to the deploying company. The payer,in this case, provides Oracle Payments withpertinent payment information, such as acredit card, debit card, or bank accountnumber.

Funds disbursement is the process of

paying funds owed to creditors, such assuppliers.

Refer also to Oracle Payments User Guide.

Funds Capture Features

Funds capture features support the process to electronically receive funds owed by e.g. customers.

Oracle Payments supports authorization and settlement of funds against credit cards and PINlessdebit cards, refunds to credit cards, electronic funds transfers from bank accounts, and formatting of

bills receivable.Note: Oracle Receivables retains the functionality of lockbox processing and electronic upload ofremittance messages.

For funds capture functionality Oracle Payments integrates with the following products:Oracle Collections, Oracle Lease Management, Oracle Partner Management, Oracle Service, OracleStudent System (and others).

Funds Disbursement Features

The Oracle Payments disbursement engine enables you to greatly simplify your procedures formanaging complex payment processes that span multiple payment methods, formats, check stocks,transmission protocols, currencies, organizations, and bank accounts.

The Oracle Payments funds disbursement process enables users of Oracle Payables and otherproducts to focus on the invoice selection process before submitting the documents payable to

Oracle Payments for payment processing. This is achieved bysplitting the payment build process into two processes. The first process creates payments bygrouping documents according to various rules, such as the payment method and currency. Thesecond process then aggregates payments into payment instruction files, formats the files, andhandles additional processing, such as printing and transmission. This aggregation process can bedone for payments created from multiple document selections and submissions to Oracle Payments.


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Oracle Payments

Supported electronic payment types for fundscapture (AR):

Credit cards

Purchase cards

PINless debit cards

Bank account transfers (always offline)

Supported for Funds Disbursement (AP):

Cheques,

EFT

Wire

May be processed online or offline

This overview does not include further detail on the Funds Capture process flow,however it is clearly described in chapter 2 of the Oracle Payments User Guide.This includes the interaction between the source Application e.g. Receivables andOracle Payments i.e. how the authorisation and settlement for a transactionoriginating and recorded within Receivables is passed to Payments.

The Oracle Payments User Guide also contains a chapter on the Funds CaptureHome Page which is a read-only web page used by the Payment Administrator todisplay the status of settlement batches.


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Funds Disbursement Process

Invoice

Invoice

SelectionProgram

Payment

ProcessRequest

Build

PaymentProgramSubmit

PaymentInstruction

This diagram is simplified from the process diagram in the Oracle Payments Users Guide.

You can manage the payment process from:

the Oracle Payments Funds Disbursement Process Home Page or from

the Payment Manager Dashboard in Oracle Payables

The Funds Disbursement Process Home Page should be used when the deploying company uses acentralised payment processing system. (If the deploying company sets up Oracle Payments so thatthe Create Payment Instructions program is run separately from the Build Payments program, thenpayments from different payment process requests are mixed together when creating paymentinstructions, and it is more difficult to follow the payment process from the perspective of the paymentprocess requests. In this case, users are advised to use the Funds Disbursement Process HomePage.)

The Oracle Payables Payments Dashboard should be used when the deploying company uses adecentralized payment processing system. Decentralized payment processing is where more thanperson or team performs multiple payment functions, such as selecting the invoices to be paid,making the payments, and remedying any problems that occur with the payment process. In thisscenario, a user who is responsible for invoice selection and the submission of payment process

requests, as well following the payment process, may decide to use the Oracle Payables PaymentsDashboard.

Note that if you choose to use the latter method the changes for the end-user may be subtle but stillrequire some adjustment e.g. the Confirm Payment batch step in 11i becomes Record Print Status inRelease 12.


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Payment Dashboard

The Funds Disbursement Process Home page is the first page the PaymentAdministrator sees (assuming this is the method you will be using: refer previousslides notes).

This page and its subsidiary pages enable the Payment Administrator to monitor

and manage the payment process described in the previous section.The Funds Disbursement Process Home page is a read-only page that includes aPending Actions region that displays the current status of payment processrequests and payment instructions that are in-process.

During the payment process, the Payment Administrator uses the FundsDisbursement Process Home page to:

monitor items that require user action in the Pending Actions region

research completed payment process requests, payments, and paymentinstructions

mark electronic payment instructions complete submit and monitor concurrent processes

record and resolve stop payments

void payments

view graphs of processing statistics


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Payments SetUp


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Suppliers

Suppliers are now included in Trading Community Architecture (TCA). This meansthat the enhanced Data Librarian capabilities for data management that werepreviously available for customer management and now also available to manageyour supplier database. Supplier data also now includes the ability to store surveyinformation which has been collected via the iSupplier portal.

The inclusion of suppliers in the TCA may also be the reason Oracle is now able tooffer Accounts Receivable / Accounts Payable Netting. This allows a tradingpartner who is both a customer and a supplier, to have open receivables offsetagainst open payables items (if you choose to do this).


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AP / AR Netting

The Payables and Receivables Netting feature enables the automatic netting of Payable and Receivabletransactions within a business enterprise.

The first step is to define a netting agreement that incorporates the netting business rules and transactioncriteria. A netting agreement controls how a group of trading partners net Payables and Receivablestransactions. You can create a netting agreement for each group of trading partners that agrees to nettransactions. Netting agreements include the business rules that define the types of transactions that may be

selected for netting, and which suppliers and customers can be netted. (For prerequisite set up see below)Once the set up is complete, a netting batch can be submitted (or scheduled). The netting batch process usesthe predefined information from the netting agreement, together with the information defined in the nettingbatch, to select the netting business rules and transactions for netting. You can optionally review the selectedtransactions and remove any that should not be a part of the netting batch.

Optionally, send the Netting Proposal Report to your trading partner for review and approval of the nettingbatch.

After the transactions are submitted for netting and approved by the trading partner, the netting process begins(if required). The netting process reconciles and clears the selected transactions for both Payables andReceivables (example on following page).

(Note this information is from Chapter 5 of the Payables User Guide).

Set-Up Prerequisites

General Ledger Setup Prerequisites Define a netting control account. / Define the exchange rate types if using multi-currency netting.

Cash Management Setup Prerequisites

Define a netting bank account. / Define the bank account at the legal entity level.

Define the netting control account. / Enable the Multi Receipt Currency check box for each netting bank account. Thisoption lets you create receipts in foreign currencies.

Receivables Setup Prerequisites

Before multiple customers are netted, you must set up a paying relationship for the customers.

Associate the bank account used in the netting agreement with the AP/AR Netting receipt class.

Enable the Allow Payment of Unrelated Transactions Receivables System Option.


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AP / AR Netting Example

This example is from Solution Beacons Release 12 Primer and makes clear hownetting works:

The netting process compares the outstanding AR invoices with the outstanding APInvoices and selects the lower of the two values for the netting amount. It then

settles the lower invoice amount and automatically applies that same amount to thehigher invoice amount.

The example shown in this slide shows the following scenario:A trading partner with a defined netting agreement has AR invoices totalling $1100and AP invoices totalling $400. When the netting process is run, a payment iscreated for $400 settling all of the AP invoices and a $400 receipt is also appliedagainst the AR invoice leaving a balance owed in AR of $700

This functionality provides much needed visibility, reduces the cost of the tradingpartnership, and improves overall cash flow. Additionally, data entry is reduced anddata processing is more efficient.


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AP Invoice Lines

The Invoice Workbench has changed with the introduction of invoice lines. InvoiceLines support the representation of the goods or services as well as tax, freight, andother charges as lines with distributions tied to each line. Additional fields recordattributes such as serial numbers and item descriptions. This feature offers theability for line level approval and matching between an invoice line and a purchaseorder shipment pay item, or receipt. It also facilitates the capture and transfer ofadditional information to Oracle Projects and Oracle Assets.


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CE Banks now in TCA

There is now a single access point for defining and managing bank accounts andthis has been incorporated into the Trading Community Architecture (TCA). Asingle legal entity now owns each bank account and one or more organisations canbe granted usage rights.

This model apparently offers significantly improved reconciliation.Legal Entities, suppliers and banks are now also parties in Oracles TradingCommunity Architecture (joining customers, employees, locations etc).

Master Data Management (MDM) is a Release 12 theme


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TCA Party Information

The authors would like to thank Alyssa Johnson, Solution Architect at SolutionBeacon for this section.

Alyssa can be reached by email at [email protected](www.SolutionBeacon.com)

You can see Party data and the relationships between parties by navigating to theRelationships form from the TCA Manager responsibility. You cant see all thedetail associated with the party but the Registry ID, Tax Registration Number,Taxpayer ID, and the Identifying Address are displayed. Also if there is arelationship assigned to the organization/person that is displayed as well. You canalso create relationships.

You can query on Legal Entities, Suppliers, and Bank information.In this example, the screenshot in this slide shows bank account information.


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TCA Information (continued)

Clicking on the first Bank of America link: Notice the two relationships associatedwith this party.

You can select relationship and click on the View Relationship button to viewadditional information about the relationship.


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TCA Information (continued)


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GL - Alternative Account


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GL Copy Journals


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Other GL Related Functionality

The open and close period program can be runfrom SRS and across multiple ledgers at thesame time.

FSGs can also be run across multiple Ledgers

AutoPost and AutoReversal criteria can be sharedacross Ledgers.

Enhanced security features including the ability togrant read only access to some set-up data.

Oracle Advanced Global Intercompany System(AGIS) enhancements (new Schema = FUN)

The Global Intercompany System (GIS) has become the Oracle Advanced GlobalIntercompany System (AGIS). Enhanced for this release, Oracle AGIS allowscompanies to comply not only with local regulations, but also to follow establishedcorporate standards for processing intercompany transactions between related legalentities of an enterprise. It also provides interactive reconciliation reporting whichallows drilldown to the details of Intercompany Account Balances so the source ofdiscrepancies to the balances of each trading partners account balances can befound quickly.


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Fixed Assets

Depreciation roll back for selected assets(instead of the whole book) to allow lastmoment transactions.

MassAddition extensible public APIs isnow also available to automaticallyprepare a mass addition line .

Oracle XML Publisher now also supports

major asset transaction reports.

If depreciation has been run without closing the period and it becomes necessary toprocess financial adjustments on one or more assets, the user can now proceedwith the transaction normally via the asset workbench or mass transactions. OracleAssets will automatically roll back the depreciation on just the selected assets(instead of the whole book) and allows the transaction(s) to be processed normally.The asset(s) for which depreciation was rolled back is then automatically picked upduring the next depreciation run or at the time that the depreciation period is finallyclosed.

A set of extensible public APIs is now also available to automatically prepare amass addition line for all required attributes such as depreciation expense account,asset category, location etc. with the goal of minimizing manual intervention by theuser in the mass additions workbench.

Oracle XML Publisher now also supports major asset transaction reports.


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Projects

Most discussions of Rel. 12 include PA.M;most of this functionality (available in 11i)has not yet been widely leveraged by theuser community

Project Portfolio Management is a newproduct in Release 12 of the ProjectsSuite.

For those of you interested in Projects, Edward Charity, Jr. did an excellentpresentation at OpenWorld, entitled From AutoAccounting/Account Generator toSubledger Accounting in Oracle Projects

He mentions in that paper that the SLA would co-exists with AutoAccounting and

Account Generator for Projects-related Transactions (for now) heralding furtherchanges in Fusion.

He also mentions that in R12 custom Sources replace SQL Select Functionality inAutoAccounting.


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Secure Enterprise Search (12.0.3)

According to a recent blog entry from Steven Chan (http://blogs.oracle.com/schan),Secure Enterprise Search is now optionally available.

Prerequisites for this optional integration are:

E-Business Suite Release 12.0.3

Oracle Secure Enterprise Search 10.1.8.2.0

E-Business Suite SES Integration Patch 6512196

References:

Installing Oracle E-Business Suite Secure Enterprise Search, Release 12 (MetalinkNote 462377.1)

Oracle Secure Enterprise Search 10g Datasheet (PDF)


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Report Manager

Review:When it was decided to move from a client

server model for ADI to an entirely web-based model. There was a product split: WebADI (data upload from spreadsheet etc)

Report Manager for report submission anddistribution of reports

Migration to a web-based model is nowcomplete.

Analysis Wizard provided via AccountAnalysis web-page

Report Manager has now moved from a client server model to an entirely web-based model and all reports run through it are now generated in XML format.Output is stored in the Report Manager repository and only formatted when reportsare published. Output formats now include PDF as well as Excel and HTML.

Note: Marsha Edgell (chair of ADI SIG) will deliver a paper on webADI at theAUSOUG conferences. A similar presentation by the same author is also availablefrom the OAUG archives (www.oaug.org).


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Reporting with BI Publisher

Approximately 400 modifiable formats inFinancials:Assets: 22

General Ledger: 14

Payables: 9

Payments: 120

Receivables: 10

Sub-ledger Accounting: 17

Tax: 10


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Further Information

There is a host of new and / or changed functionality we have not even been able totouch on in this paper.

For example Supply Chain enhancements:The IDC whitepaper mentioned earlier in this presentation notes that : Using

Strategic Network Optimization tools companies can increase profits through assetrationalization by modelling the supply chain to determine optimal mix and locationof facilities and equipment, and analysing scenarios via geographical visualization.

Financial Consolidation Hub (FCH) that enables automated global financialconsolidations from Oracle and non-Oracle sources. This tool provides multi-dimensional reporting and analysis and is part of the Performance Managementproduct family (along with Enterprise Planning and Budgeting).

Data Access Sets and Definition Access Sets also provide additional accesscontrol.


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Conclusions

Over 2,350 new features including some

majorchanges Major change often requires time to mature

Do the ROI calculations and be strategic

You can go directly from 11i10 to Fusion

If you dont have an up to date customisationregister, start there!

Dont underestimate the training and testingrequired

Note that of the more than 2,350 new functions, approximately half are industry specific.

On the topic of migrating customisations, refer also to Metalink Note 374398.1 Preparing CustomDevelopment for Next EBS Release

Solution Beacon published a helpful brief article on planning the migration of customisations insunset technologies in their January 2007 newsletter. Their recommendations included moving away

from Oracle Reports towards XML Publisher. There is also an excellent follow up in the Octobernewsletter; in summary:

Forms 6i in 11i Forms 10g in 12: Customisations should migrate

Forms personalisations should migrate but will depend on changes in the underlying form;Read Metalink Note 395117.1

Reports Server has been dropped in 12 and the direction is BI Publisher, recommendation:migrate towards BI Publisher

Personal Homepage can still be used in 12 (!) but only Framework mode is supported; ReadMetalink Note 395445.1 (Recommendation is to use Framework mode)

Alerts are alive and well in Release 12 but must be tested during the migration

If you do not wish to go to Release 12 there are a host of things you can do now to transition towardsFusion, e.g. starting to use BI Publisher and BPEL.

Things which may be flushed out by testing include for example the shift from controlling access toconcurrent request logs and output files, which was controlled by profile options in Release 11i but in12 is controlled via grants in User Management. For excellent coverage of this refer to the Octoberedition of the Solution Beacon Newsletter.


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Recent Post on OAUGNet

On the Openworld 2007 'eBusiness Suite 12iUpgraders Group', this was recently posted:" Oracle is closely tracking all activity aroundcustomers working on Release 12. There are currently15 customers live on Release 12, and you are correctin that most are new implementations. The are over120 customers that are actively working onimplementing/upgrading to Release 12 that areworking closely with Development/Support. There willbe a session at OOW dedicated to talking about the

momentum on Release 12 called: Oracle E-BusinessSuite Release 12: The Momentum Continues.

Post was from 6th November 2007

In general from the chatter on OAUGNet it seems that new implementations arefinding R12 quite stable.

In an OpenWorld presentation entitled Oracle EBS Financials Release 12 andBeyond Terrance Wampler (VP Financials Product Strategy) presented thefollowing information in a slide entitled: E-Business Suite Release 12 Momentum

1,600+ customers downloaded software

900+ customers actively engaging Support

130+ customers proactively tracked by Development

As of November 6, 2007

20+ customers live

release 12 part 2

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