KBACEOracle Financials Release 12

Oracle Release 12
Oracle Financials: What's New in Release 12
Peter Finn
Senior Principal Consultant, Financials
1 ©©2007
2009KBACE
KBACETechnologies,
Technologies,Inc.
Inc.
Agenda
• MOAC (Multi-Org Access Control)
• General Ledger
• Payables
• Oracle Payments
• Assets
• E-Business Tax
• Legal Entities
• Subledger Accounting
• Receivables
• Questions and Answers
2 © 2009 KBACE Technologies, Inc.

New Terminology for R12
• Multi-Org Access Control (MOAC) – Provides ability to
access multiple Operating Units from one responsibility
for transaction processing and reporting.
• Ledger – Replaces Sets of Books
• Legal Entities – Migrated from GRE/LEs in 11i, but new

object in R12. Legal Entities created post upgrade will
not create GRE/LEs. GRE/LEs will remain to support
Payroll.

Multiple Organization Access Control
(MOAC)

Multiple Organization Access Control (MOAC)
• Enables Concurrent Processing and reporting across

Operating Units from a single responsibility
• The profile option MO: Security Profile, is used to associate

a group of OUs to a user responsibility
• New Operating Unit field on User Interface

Multiple Organization Access Control (MOAC)
¾Payables Workbench

Ledgers: Accounting Setup

Ledgers and Accounting Setup Manager
• Ledgers replace Sets of Books in 11i
• Accounting Setup Manager - Central place for defining and

maintaining accounting setup for the following:
• Legal Entities
• Operating Units
• Ledgers (primary and secondary ledgers)
• Reporting Currencies
• Subledger Accounting Options
• Inter and Intra-company Balancing using Advanced Global Intercompany System

Accounting Setup Manager

Accounting Setup Manager
Secondary Ledgers
• Alternate accounting representation of primary ledger data
• Usually used for local reporting requirements of foreign subsidiary
• Can differ from the primary ledger in one or more of the following :
• Chart of accounts
• Accounting calendar/period type
• Currency
• Subledger Accounting Method

Ledger Sets and Data Access Sets

Ledger Sets
• Logical grouping of Ledgers with the same Chart of

Accounts, Calendar and Period Type
• Basis for cross/multi-ledger inquiry, reporting and

shared service operations
• Opening/Closing Periods
• Creating allocations and recurring journals
• Translating Balances
• Reporting (FSGs across Ledgers)

Ledger Sets - Configuration

Data Access Sets
• Access multiple Ledgers from one responsibility
• Must share the same Chart of Accounts, Calendar and Period Type
• Assign one or more Ledgers to a Data Access Set

• Read/Write Access
• Read Only Access
• Can secure access to one Balancing Segment Value (Company)
• From single responsibility for all Ledgers in Data Access Set you can:
• Enter, view and post journals
• View account balances/activities
• Run and View reports

Data Access Sets - Configuration

Data Access Sets vs Ledger Set
• Data Access Sets let you access multiple Ledgers from a

single responsibility
• Ledger Sets let you run a process for multiple Ledgers
• When you define Ledger Set, a Data Access Set

containing the Ledger Set is automatically created

General Ledger
Other New Features
• Alternate Accounts
• Replacement for disabled accounts: can now specify alternate accounts when
accounts are disabled to handle any exceptions that may occur

Payables
Invoice Lines

Invoice Lines
• New Hierarchical Invoice Model
• Headers
• Lines
• Distributions
• Entity between headers and distributions to improve the

flow of information like manufacturer, model, and serial
number from Payables to Assets
• Invoice Lines represent goods, services and associated

tax/freight/misc charges invoiced from a supplier

Invoice Lines
• Enhanced Asset Tracking
• Item Description
• Manufacturer
• Model
• Serial Number
• Warranty Number
• Asset Book
• Asset Category

Invoice Lines
• Enhanced Asset Tracking - The Create Mass Additions process has been enhanced to transfer
these new fields into the interface table

Invoice Lines
• Invoice Lines Corrections
• Invoice corrections can be made against individual lines.

Payables
Suppliers added to TCA

TCA Architecture - Suppliers
•Supplier – TCA (Trading Community Architecture) Party, which can
also be a Customer, Legal Entity or Bank.
•Goals for expanded TCA: Move towards providing one repository

of information regarding the community in which companies do
business
•Includes organizations and persons with varying business capacities

such as Suppliers, Customers, and Prospects
•The trading community model separates information about the entity

itself (a party) from the details of the relationship
Redundant data is eliminated
Cross-product integration becomes easier
Get more consistent view of the parties

TCA Supplier Records
•Quick Update Page- Info for supplier and all sites on one
page- these attributes are on other pages also

•Create site by assigning to Operating Unit

•Address Created

•Site Created

Oracle Payments

Oracle Payments
• Redesigned Payment Build Process
• Allows users to separate invoice selection from payment
build process
• Select invoices across OUs, currencies and payment methods
• More automation
• More control over when and how invoices are validated and grouped into
payments and payment files

Oracle Payments
¾Payment Templates
• Defaults Information to Payment Process Request (Payment Run)
• Pay Groups
• Supplier Types
• Currency
• Review Stop Points
• Usage is Optional

Oracle Payments – Payment Dashboard
• View payment processes that require action.

• View payment processing progress in real-time.
• Perform tasks for pay run processing using the links in the shortcuts section.
Assets
Automatic Depreciation Rollback

• You can perform additional transactions on assets after
running depreciation without having the need to run the
depreciation rollback program as long as the period in open
• If additional transactions (adjustment, retirement, etc.) are

needed, the user can update those assets as needed
• The depreciation data is rolled back automatically by the

system and the transactions can be processed
• Depreciation is run again only for the assets that were rolled
back and updated

• Depreciation rolled back automatically when any
transaction is performed on an asset if the following
conditions are met:
• Depreciation has been processed in the period
• The period is not closed
• No longer required to run depreciation rollback program

manually
• Depreciation rollback is executed only on selected assets

as required and not on the entire Asset Book: thereby
enhancing performance of the program
Additional Assets Features - Web ADI uploads
• Enhanced Mass Additions Interface for Asset Data Web
ADI uploads
• Asset Life
• Depreciation Method
• Prorate Convention
and others can now be directly imported instead of being derived from the
Asset Category.
• Additional attributes have been added to the
FA_MASSADDITIONS interface table
• WebADI has been enhanced to provide the additional

attributes

New Mass Addition Features
• Enhanced Mass Additions Interface for Asset Data
Conversions – Web ADI

E-Business Tax

E-Business Tax
• EB Tax
• Centralized tax setup
• Covers Procure to Pay and Order to Cash, except Withholding Taxes
• Using Tax Classifications, it keeps the 11i functionality - you can
implement EB Tax functionality later
• 11i Upgrades - ensures 11i Tax setup is not lost, but is

migrated to EB Tax- can work exactly the same way as
before if you don’t want to configure it

E-Business Tax
• E-Business Tax replaces the following Oracle Release 11i

tax solutions:
• Order to Cash – Global Tax Engine
• Procure to Pay – Automatic Tax Calculation
• General Ledger – General Ledger Automatic Tax Calculation

E-Business Tax
Transaction involve:
• Parties
• Places
• Products
• Processes
Which are passed from Subledgers (AP, AR) to Oracle E-

Business Tax

E-Business Tax Hierarchy
• Tax Regime - Common set of default information, regulations,

fiscal classifications and registrations
• Tax - Classification of a charge imposed by a government

authority Example: State Sales Tax
• Tax Jurisdiction - Geographic region or tax zone where a specific

tax authority levies a tax
• Includes Geography Type
• City
• County
• State
• Country

E-Business Tax Hierarchy
• Tax Status - Taxable nature of a product in the context of a
transaction
• Examples:
• Standard (most common)
• Zero
• Exempt
• Reduced rates
• Tax Rate – Specific Rate used on Transaction
• Tax Recovery Rate - Enables full or partial recovery of taxes paid

on purchases, either as a recoverable payment or as an offset
against taxes owed (used for VAT)

E-Business Tax
• Tax Regime

E-Business Tax
• Tax

E-Business Tax
• Tax Jurisdiction

E-Business Tax
• Tax Status

E-Business Tax
• Tax Rate

E-Business Tax
• Tax Recovery Rate

Tax Rules
• Determines
• Which taxes apply to the transaction.
• How to calculate the tax amount for each tax that applies to the
transaction
• Based on setup and transaction
• Applicable Globally or by Operating Unit
• Set up for Regime, Tax and Rule Type

Tax Rules - Default

Tax Rules
• Determine Complexity of Rule:
• No tax rules required- all sales and purchases taxed at same rate.
Tax applicability nor the tax rates and recovery rates vary by
• the parties to the transaction
• the products or services
• business processes involved in the transaction
• E-Business Tax uses the default tax status, tax rate, and tax recovery rate
defined for the tax.

Tax Rules
• Simple tax rule regimes - Tax authority levies tax on your

transactions at the
• Same rate, with a simple set of identifiable exceptions.
• Certain parties
• Certain products
• Certain transaction processes
• In such cases, use a simple set of tax rules, for example, to identify
place of supply and tax registration, and use default values for other
processes.

Tax Rules
• Complex tax regimes - Tax regimes in certain countries require a

complex logic to determine the applicable taxes and rates on a
transaction.
• Both tax applicability and tax rates can vary, for example, by place of
origin and place of destination, party registration, status, service, or a
combination of factors.

Legal Entities

Legal Entities
• Replaces GRE/LEs for Financial applications
• GRE/LEs still used for Oracle Payroll
• Legal Entity
• Legal Entity Name
• Organization Name
• Registration Number (in U.S. the EIN/TIN)
• Legal Entity Identifier – Registration number for the jurisdiction
• Transacting Entity - First Party in a transaction (verses external organization)
• NAICS (SIC Code)

Legal Entities
• Legal Entity - General

Legal Entities
• Registrations

Legal Entities
• Legal Entity
• Used in:
• Payment Method Usage Rules (Oracle Payments)

• EB Tax calculation
• Intercompany processing
• Bank ownership

Subledger Accounting

• Concepts
• Rule-based accounting engine, toolset, and repository that centralizes
accounting across the E-Business Suite
• Intermediate step between each of the subledger applications and Oracle
General Ledger
• SLA creates the final accounting for subledger journal entries and transfers
the accounting to General Ledger
• Can define detailed accounting rules using a centralized accounting setup
in a common user interface.

• To generate the journal entries online (AP example). This will
create entries for all related Ledgers (Primary and Secondary)

• View Subledger Accounting for Invoice

• Submit an offline process to create accounting for multiple of transactions

• Subledger Accounting Program Report

• Created by the offline accounting program
• Shows any errors encountered during the process, and suggests the ways
to correct the errors.
• Accounting report and other standard reports provided, such as journal
entries report, account analysis report, and third party balances report all
utilize the XML technology and allow you to change the layout of the
reports, change the default sorting and grouping, customize further by
adding company logos etc.

• Subledger Accounting process - Subledger Accounting Program Report (Fixed Assets)

• View Subledger Accounting for Invoice - Information used to derive
General Ledger journals is available for query and detail

Subledger Accounting in Fixed Assets
• View Accounting from Financial Inquiry
• Financial Information form: Tools->View Accounting

Subledger Accounting in Fixed Assets
• View Accounting from: Inquiry->Subledger Accounting–>Journal Entry Lines
• Query Subledger Journals based on criteria

• Allows defining multiple accounting methods for use on separate
Ledgers, including Secondary Ledgers
• Includes Seeded Accounting Methods such as Accrual and Cash Basis
• Allows you to create journal entries on multiple Ledgers for a single

business event (example: US GAAP and IFRS)
• Retains the most granular level of detail, with different summarization

options in the General Ledger
• Introduces a common data model and UI across subledgers, replaces

various disparate 11i setups

Receivables
Customers

Customers
• New HTML user interface for entering and maintaining Customer
• New Customer page in R12 has eliminated navigation to separate

windows. Users can specify the following on a single page:
• Customer Information
• Account Details
• Address
• Account Site Details
• Business Purpose

Customers
• Customer –TCA (Trading Community Architecture) Party, which is an

Organization or a Person. New in R12, Parties can also be Suppliers,
Banks or Legal Entities.
• Account – Business relationship that a party can enter into with another
party, including the terms and conditions of doing business with the
party. Invoices are created for a Customer Account.
• Site - A Customer address that is used for billing, shipping, or other

purposes. An account can have multiple account sites.

Customers
• New HTML user interface for entering and maintaining Customer

Customer Accounts

Customer Sites

Customer Sites

Receivables
Transactions

Transactions
• Operating Unit derived based on the Transaction Source
• Addition of Legal Entity field

Receivables
Balance Forward Billing

¾Replaces Consolidated Billing with enhancements to bill
creation and presentation
• Produce consolidated bills for customer
• Includes balance carried forward plus all current transactions for the billing
period
• Define Billing Cycles to indicate billing frequency (daily, weekly, monthly,

bi-monthly, quarterly, and annual)
• Balance forward bill in either summary or detail format

• Summary – lists total amount of each transaction
• Detail – lists item description, quantity, and unit price for each line on each invoice

• Replaces 11i Consolidated Billing
• Requires Configuration and enabling the Account to be billed as indicated.

• Create a Billing Cycle
• Assign the Billing Cycle to a
Payment Term

Receivables
Collections

Improved Collections Functionality
¾Uses Advanced Collections
Features:
• One screen to review accounts and record customer interaction
• Collector’s Work Queue – assign collections work to users
• R12 Receivables delivers basic Advanced Collections

functionality
• Scoring Engine (with predefined set of scoring components)
• Use of Dunning Plans
Not all Advanced Collections functionality can be used without purchase of additional
licenses.

Collections Features for Receivables
• Available Advanced Collection features in Receivables:
¾ Create Promises
¾ Enter Disputes and Adjustments
¾ Configurable dunning tool including dunning correspondence and
callbacks
¾ Correspondence for disputes, adjustments, reversals, invoices, promises
and payments

Collector’s Work Queue

Collections - Profile

Collections - History

Collections - Accounts

Collections – View Open Lines Listing Button

Collections – Adjustment Processing Button

Receivables
Other New Features

Receivables Daily Revenue Recognition
• Revenue can be recognized over partial accounting periods
• Accuracy to the number of days in the accounting period
• Implemented using two new Accounting Rule types

Receivables Line Level Application
• Allows the receipt application to specific transaction items such as transaction lines, tax
or freight
• Choose whether to allocate partial cash application to the entire transaction or to apply
amounts against specific items

Questions & Answers
Speaker:
Peter Finn
Email: pfinn@kbace.com
Phone: 978.390.2863
Recording & Presentation:

http://kbace.com/index.php/events/
webinars/online-archives

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Oracle Release 12

Oracle Financials: What's New in Release 12

2 © 2009 KBACE Technologies, Inc.

• Ledger – Replaces Sets of Books

• Legal Entities – Migrated from GRE/LEs in 11i, but new

3 © 2009 KBACE Technologies, Inc.

4 © 2009 KBACE Technologies, Inc.

• Enables Concurrent Processing and reporting across

• The profile option MO: Security Profile, is used to associate

• New Operating Unit field on User Interface

5 © 2009 KBACE Technologies, Inc.

6 © 2009 KBACE Technologies, Inc.

7 © 2009 KBACE Technologies, Inc.

• Ledgers replace Sets of Books in 11i

• Accounting Setup Manager - Central place for defining and

8 © 2009 KBACE Technologies, Inc.

9 © 2009 KBACE Technologies, Inc.

• Usually used for local reporting requirements of foreign subsidiary

10 © 2009 KBACE Technologies, Inc.

11 © 2009 KBACE Technologies, Inc.

• Logical grouping of Ledgers with the same Chart of

• Basis for cross/multi-ledger inquiry, reporting and

12 © 2009 KBACE Technologies, Inc.

13 © 2009 KBACE Technologies, Inc.

• Assign one or more Ledgers to a Data Access Set

14 © 2009 KBACE Technologies, Inc.

15 © 2009 KBACE Technologies, Inc.

• Data Access Sets let you access multiple Ledgers from a

• Ledger Sets let you run a process for multiple Ledgers

• When you define Ledger Set, a Data Access Set

16 © 2009 KBACE Technologies, Inc.

17 © 2009 KBACE Technologies, Inc.

18 © 2009 KBACE Technologies, Inc.

• Entity between headers and distributions to improve the

• Invoice Lines represent goods, services and associated

19 © 2009 KBACE Technologies, Inc.

20 © 2009 KBACE Technologies, Inc.

21 © 2009 KBACE Technologies, Inc.

22 © 2009 KBACE Technologies, Inc.

23 © 2009 KBACE Technologies, Inc.

•Goals for expanded TCA: Move towards providing one repository

•Includes organizations and persons with varying business capacities

•The trading community model separates information about the entity

24 © 2009 KBACE Technologies, Inc.

25 © 2009 KBACE Technologies, Inc.

26 © 2009 KBACE Technologies, Inc.

27 © 2009 KBACE Technologies, Inc.

28 © 2009 KBACE Technologies, Inc.

29 © 2009 KBACE Technologies, Inc.

30 © 2009 KBACE Technologies, Inc.

31 © 2009 KBACE Technologies, Inc.

• View payment processes that require action.

33 © 2009 KBACE Technologies, Inc.

• If additional transactions (adjustment, retirement, etc.) are

• The depreciation data is rolled back automatically by the

34 © 2009 KBACE Technologies, Inc.

• No longer required to run depreciation rollback program

• Depreciation rollback is executed only on selected assets

• WebADI has been enhanced to provide the additional

36 © 2009 KBACE Technologies, Inc.

37 © 2009 KBACE Technologies, Inc.

38 © 2009 KBACE Technologies, Inc.