Use Only: R12 Oracle Financials Functional Migration Fundamentals

R12 Oracle Financials
Functional Migration
Fundamentals
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Student Guide Volume 1
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D49298GC10
Edition 1.0
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July 2007
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Copyright © 2007, Oracle. All rights reserved.
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Author
Richard Sears, Dee Fairbanks Simpson
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Technical Contributors and Reviewers
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David Barnacle, Melanie Featherstone, Wallace Gardipe, Theresa Hickman, Anant Iyer, Thierry
Javelle, Ruth Kukla, Robert Macisaac, Vic Mitchell, Christine Rudd, Kathryn Wohnoutka
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This book was published using:
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Table of Contents
Oracle Financials Overview............................................................................................................................1-1

Oracle Financials Overview ..........................................................................................................................1-3
Objectives ......................................................................................................................................................1-4
Why R12?......................................................................................................................................................1-5
Architecture ...................................................................................................................................................1-6
Multi-Org Access Control (MOAC)..............................................................................................................1-8
Subledger Accounting ...................................................................................................................................1-9
Ledger............................................................................................................................................................1-11
Ledger Sets ....................................................................................................................................................1-12
Ledger Architecture.......................................................................................................................................1-13
Legal Organization ........................................................................................................................................1-14
Enhanced Legal Support................................................................................................................................1-15
Benefits of Legal Entities ..............................................................................................................................1-16
Oracle E-Business Tax ..................................................................................................................................1-17
Advanced Global Intercompany System .......................................................................................................1-18
Centralized Banking ......................................................................................................................................1-19
Bank Model Example ....................................................................................................................................1-20
Four Ways to Consolidate Information .........................................................................................................1-21
Multi-Dimensional Analysis & Reporting.....................................................................................................1-22
Financial Consolidation Hub .........................................................................................................................1-23
Data Management..........................................................................................................................................1-24
XML Publisher ..............................................................................................................................................1-25
New Standard Reports ...................................................................................................................................1-26
Other New Features .......................................................................................................................................1-27
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Multi-Org Access Control Overview..............................................................................................................2-1 e
Summary........................................................................................................................................................1-29
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Multi-Org Access Control Overview.............................................................................................................2-3
Objectives ......................................................................................................................................................2-4
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Agenda...........................................................................................................................................................2-5
Multi-Org Access Control Description..........................................................................................................2-7
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Multi-Org Access Control Benefits ..............................................................................................................2-9
Multi-Org Access Control Process Summary................................................................................................2-10
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Multi-Org Access Control Setup ...................................................................................................................2-11
Multi-Org Access Control Setup – Create Operating Unit ............................................................................2-12
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Multi-Org Access Control Setup – Define Security Profile ..........................................................................2-14
Multi-Org Access Control Setup – Run System List Maintenance ...............................................................2-15
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Multi-Org Access Control Setup – Set Profile Options.................................................................................2-16
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Implementation Considerations .....................................................................................................................2-17
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Agenda...........................................................................................................................................................2-18
Multi-Org Preferences Description................................................................................................................2-19
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Multi-Org Preferences Benefits .....................................................................................................................2-20
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Multi-Org Preferences Process Summary.....................................................................................................2-21
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Multi-Org Preferences Setup .........................................................................................................................2-22
Multi-Org Preferences Setup – Add to SubMenu..........................................................................................2-23
Multi-Org Preferences Setup – Set Preferences............................................................................................2-24
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Agenda...........................................................................................................................................................2-25
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Enhanced Multi-Org Reporting Description..................................................................................................2-26
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Enhanced Multi-Org Reporting Benefits......................................................................................................2-27
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Enhanced Multi-Org Reporting Process ........................................................................................................2-28
Enhanced Multi-Org Reporting Process – Run Report.................................................................................2-29
O Guided Demonstration 1 Overview: Using MOAC......................................................................................2-30

Guided Demonstration - Using MOAC .....................................................................................................2-31
Copyright © Oracle, 2007. All rights reserved.
R12 Oracle Financials Functional Migration Fundamentals Table of Contents

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Summary........................................................................................................................................................2-38
Subledger Accounting Overview ....................................................................................................................3-1
Subledger Accounting Overview...................................................................................................................3-3
Objectives ......................................................................................................................................................3-4
Agenda...........................................................................................................................................................3-5
Subledger Accounting ...................................................................................................................................3-7
Subledger Accounting Description................................................................................................................3-8
Agenda...........................................................................................................................................................3-10
Business Benefits...........................................................................................................................................3-11
Business Benefits – Global Example.............................................................................................................3-12
Business Benefits - Auditability ....................................................................................................................3-15
Business Benefits – Transaction Example.....................................................................................................3-16
Business Benefits - Accounting Reconciliation.............................................................................................3-18
Agenda...........................................................................................................................................................3-19
Key Concepts.................................................................................................................................................3-20
Event Classes.................................................................................................................................................3-21
Events ............................................................................................................................................................3-22
Transaction Objects and Sources...................................................................................................................3-23
Agenda...........................................................................................................................................................3-24
Major Features...............................................................................................................................................3-25
Accounting Methods Builder.........................................................................................................................3-27
Online Accounting.........................................................................................................................................3-31
Inquiries.........................................................................................................................................................3-32
Offline Accounting ........................................................................................................................................3-34
Standard Reports ...........................................................................................................................................3-35
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Agenda...........................................................................................................................................................3-36
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Setup..............................................................................................................................................................3-37
Setup - Journal Line Type..............................................................................................................................3-38
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Setup – Journal Line Type.............................................................................................................................3-39
Setup - Journal Line Type..............................................................................................................................3-40
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Guided Demonstration 1 Overview: Defining Journal Line Types for Payables..........................................3-41
Guided Demonstration - Defining Journal Line Types in Payables...........................................................3-42
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Practice 1 Overview: Defining Journal Line Types for Payables .................................................................3-44
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Practice - Defining Journal Line Types for Payables ................................................................................3-45
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Solution – Defining Journal Line Types for Payables ...............................................................................3-47
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Setup - Account Derivation Rule...................................................................................................................3-52
Setup – Account Derivation Rule ..................................................................................................................3-53
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Setup - Account Derivation Rule...................................................................................................................3-54
Guided Demonstration 2 Overview: Defining Account Derivation Rules for Payables...............................3-55
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Guided Demonstration - Defining Account Derivation Rules for Payables ..............................................3-56
Practice 2 Overview: Defining Account Derivation Rules for Payables ......................................................3-58
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Practice - Defining Account Derivation Rules for Payables......................................................................3-59
Solution – Defining Account Derivation Rules for Payables ....................................................................3-61
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Setup – Journal Entry Description .................................................................................................................3-69
Setup – Journal Line Definition.....................................................................................................................3-70
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Setup - Journal Line Definition .....................................................................................................................3-71
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Guided Demonstration 3 Overview: Defining Journal Lines Definitions for Payables................................3-72
Guided Demonstration - Defining Journal Lines Definitions for Payables ...............................................3-73
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Practice 3 Overview: Defining Journal Lines Definitions for Payables .......................................................3-74
Practice - Defining Journal Lines Definitions for Payables.......................................................................3-75
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Setup – Application Accounting Definition ..................................................................................................3-80
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Setup - Application Accounting Definition ...................................................................................................3-81
Setup – Subledger Accounting Method .........................................................................................................3-82

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Setup - Subledger Accounting Method..........................................................................................................3-83
Ledger Setup and SLAM Assignment ...........................................................................................................3-84
Setup – Set Key Profile Options....................................................................................................................3-86
Agenda...........................................................................................................................................................3-87
Summary........................................................................................................................................................3-89
Oracle E-Business Tax Overview ...................................................................................................................4-1
Oracle E-Business Tax Overview..................................................................................................................4-3
Objectives ......................................................................................................................................................4-4
Agenda...........................................................................................................................................................4-5
What is Oracle E-Business Tax (eBTax) .......................................................................................................4-7
Agenda...........................................................................................................................................................4-8
Business Requirements Met by eBTax..........................................................................................................4-9
Business Needs Solutions ..............................................................................................................................4-11
Agenda...........................................................................................................................................................4-15
Key Concepts: Tax Authority........................................................................................................................4-16
Key Concepts: Tax Regime ...........................................................................................................................4-17
Key Concepts: Tax ........................................................................................................................................4-18
Key Concepts: Tax Jurisdiction.....................................................................................................................4-19
Agenda...........................................................................................................................................................4-20
Architecture Overview ..................................................................................................................................4-21
Agenda...........................................................................................................................................................4-22
Processing Taxes for Transactions ................................................................................................................4-23
Tax Determination Services Example ...........................................................................................................4-25
Agenda...........................................................................................................................................................4-29
User Interface ................................................................................................................................................4-30
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Agenda...........................................................................................................................................................4-32
Upgraded and Redesigned Features...............................................................................................................4-33
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Upgraded and Enhanced Features .................................................................................................................4-34
Tax Definition Hierarchy...............................................................................................................................4-35
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Practice 1 Overview: Creating a Regime to Rate Tax Model.......................................................................4-38
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Tax Configuration Ownership .......................................................................................................................4-37
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Practice - Create a Regime to Rate Tax Model..........................................................................................4-39
Solution - Create a Regime to Rate Tax Model .........................................................................................4-45
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Tax Defaulting Hierarchy ..............................................................................................................................4-53
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System Options for Tax.................................................................................................................................4-54
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Tax Groups ....................................................................................................................................................4-55
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Tax Jurisdiction Handling..............................................................................................................................4-56
Practice 2 Overview: Creating Tax Zones ....................................................................................................4-58
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Practice - Create Tax Zones.......................................................................................................................4-59
Solution – Create Tax Zones .....................................................................................................................4-61
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Tax Compounding .........................................................................................................................................4-64
Tax Inclusiveness ..........................................................................................................................................4-65
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Tax Recovery.................................................................................................................................................4-67
Tax Rounding ................................................................................................................................................4-69
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Tax Overrides ................................................................................................................................................4-70
Offset Taxes...................................................................................................................................................4-72
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Party Tax Attributes.......................................................................................................................................4-73
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Practice 3 Overview: Creating a First Party Tax Profile ..............................................................................4-74
Practice - Create a First Party Tax Profile .................................................................................................4-75
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Solution – Create a First Party Tax Profile................................................................................................4-77
Multiple Tax Registrations ............................................................................................................................4-80
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Tax Exemptions.............................................................................................................................................4-82
Tax Exceptions ..............................................................................................................................................4-84
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Tax Formulas.................................................................................................................................................4-85
Global Descriptive Flexfields ........................................................................................................................4-87

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Transaction Tax Upgrade ..............................................................................................................................4-88
Practice 4 Overview: Creating Transactions with Applicable Tax...............................................................4-90
Practice - Create Transactions with Applicable Tax..................................................................................4-91
Solution – Create Transactions with Applicable Tax ................................................................................4-95
New Features .................................................................................................................................................4-100
Content and Services Subscription ................................................................................................................4-101
Events and Configuration Owner Options.....................................................................................................4-102
Tax Jurisdictions............................................................................................................................................4-104
Tax Rules.......................................................................................................................................................4-105
Practice 5 Overview: Setting Up Tax Rule Defaults ....................................................................................4-106
Practice - Set Up Tax Rule Defaults ..........................................................................................................4-107
Solution – Set Up Tax Rule Defaults.........................................................................................................4-108
Fiscal Classifications: Product.......................................................................................................................4-110
Fiscal Classifications: Party...........................................................................................................................4-111
Fiscal Classifications: Transaction ................................................................................................................4-113
Tax Repository ..............................................................................................................................................4-115
Practice 6 Overview: Creating Tax Accounts...............................................................................................4-116
Practice - Create Tax Accounts .................................................................................................................4-117
Solution – Create Tax Accounts ................................................................................................................4-118
Tax Simulator ................................................................................................................................................4-120
Practice 7 Overview: Reviewing Tax Configuration Results Using the Tax Simulator ...............................4-121
Practice - Review Tax Configuration Results Using the Tax Simulator....................................................4-122
Solution – Review Tax Configuration Results Using the Tax Simulator ..................................................4-126
Guided Configuration ....................................................................................................................................4-130
Profile Options for Tax..................................................................................................................................4-132
Upgrade Considerations ................................................................................................................................4-133
Implementation Information..........................................................................................................................4-134
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Summary........................................................................................................................................................4-135
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Oracle General Ledger....................................................................................................................................5-1
Oracle General Ledger...................................................................................................................................5-3
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Objectives ......................................................................................................................................................5-4
Agenda – Part 1 .............................................................................................................................................5-5
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Agenda – Part 2 .............................................................................................................................................5-6
Agenda – Part 1 .............................................................................................................................................5-7
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Accounting Setup ..........................................................................................................................................5-8
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Accounting Setup Benefits ............................................................................................................................5-11
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Accounting Setup Manager ...........................................................................................................................5-12
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Accounting Setup Manager Benefits .............................................................................................................5-14
Accounting Setup Process .............................................................................................................................5-15
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Practice 1 Overview - Define a Ledger .........................................................................................................5-18
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Practice - Define a Ledger .........................................................................................................................5-19
Solution – Define a Ledger........................................................................................................................5-22
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Agenda – Part 1 .............................................................................................................................................5-28
Multiple Currency Support For General Ledger Data From All Sources ......................................................5-29
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Multiple Currency Support For General Ledger Data From All Sources Benefits........................................5-32
Multiple Currency Support For General Ledger Data From All Sources Process.........................................5-33
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Guided Demonstration 1 Overview: Create Accounting Setup ....................................................................5-35
Guided Demonstration - Create Accounting Setup....................................................................................5-36
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Agenda – Part 1 .............................................................................................................................................5-43
Entered Currency Reporting and Analysis Description.................................................................................5-44
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Entered Currency Reporting and Analysis Description................................................................................5-45
Entered Currency Reporting and Analysis Benefits .....................................................................................5-46
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Entered Currency Reporting and Analysis Setup ..........................................................................................5-47
Agenda – Part 1 .............................................................................................................................................5-48

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Foreign Currency Recurring Journals Description .......................................................................................5-49
Foreign Currency Recurring Journals Benefits.............................................................................................5-50
Foreign Currency Recurring Journals Process...............................................................................................5-51
Agenda – Part 1 .............................................................................................................................................5-53
Data Access to Multiple Legal Entities and Ledgers Description .................................................................5-54
Data Access to Multiple Legal Entities and Ledgers Benefits.......................................................................5-57
Data Access to Multiple Legal Entities and Ledgers Process.......................................................................5-58
Data Access to Multiple Legal Entities and Ledgers Setup..........................................................................5-59
Data Access to Multiple Legal Entities and Ledgers Setup – Assign Data Access Set .................................5-60
Guided Demonstration 2 Overview: Create Data Access Sets with Read/Write Access...............................5-61
Guided Demonstration - Create Data Access Sets with Read/Write Access .............................................5-62
Agenda – Part 1 .............................................................................................................................................5-66
Multi-Ledger Processing Description............................................................................................................5-67
Multi-Ledger Processing Benefits ................................................................................................................5-69
Multi-Ledger Processing ...............................................................................................................................5-70
Guided Demonstration 3 Overview: Viewing Ledger Sets ..........................................................................5-71
Guided Demonstration - View Ledger Set.................................................................................................5-72
Multi-Ledger Processing Process – Simultaneous Opening and Closing of Periods.....................................5-73
Multi-Ledger Processing Process – Simultaneous Year-End Closing Journals.............................................5-74
Multi-Ledger Processing Process – Simultaneous Currency Translation.....................................................5-75
Multi-Ledger Processing Process – Financial Reporting Across Ledgers ..................................................5-76
Multi-Ledger Processing Setup ....................................................................................................................5-77
Guided Demonstration 4 Overview: Ledger Set Processing ........................................................................5-78
Guided Demonstration - Ledger Set Processing ........................................................................................5-79
Practice 2 Overview: Create a Ledger Set .....................................................................................................5-84
Practice - Create a Ledger Set....................................................................................................................5-85
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Solution - Create a Ledger Set...................................................................................................................5-88
Agenda – Part 1 .............................................................................................................................................5-93
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Financial Reports Across Ledgers Description.............................................................................................5-94
Financial Reports Across Ledgers Benefits..................................................................................................5-95
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Financial Reports Across Ledgers Process ...................................................................................................5-96
Financial Reports Across Ledgers Setup ......................................................................................................5-97
Guided Demonstration 5 Overview FSG Reporting Using Ledger Sets.......................................................5-98
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Guided Demonstration - FSG Reporting Using Ledger Sets .....................................................................5-99
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Agenda – Part 1 .............................................................................................................................................5-101
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Cross-Ledger and Foreign Currency Allocations Description.....................................................................5-102
Cross-Ledger and Foreign Currency Allocations Benefits ...........................................................................5-103
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Cross-Ledger and Foreign Currency Allocations Setup and Process ...........................................................5-104
Agenda – Part 1 .............................................................................................................................................5-105
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Streamlined Automatic Posting/Reversal Description...................................................................................5-106
Streamlined Automatic Posting/Reversal Benefits .......................................................................................5-107
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Streamlined Automatic Posting/Reversal Setup and Process .......................................................................5-108
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Agenda – Part 1 .............................................................................................................................................5-109
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Integrated Web-based Spreadsheet Interface Description .............................................................................5-110
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Integrated Web-based Spreadsheet Interface Benefits...................................................................................5-112
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Integrated Web-based Spreadsheet Interface Setup and Process...................................................................5-113
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Agenda – Part 1 .............................................................................................................................................5-114
Journal Copy Description ..............................................................................................................................5-115
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Journal Copy Benefits ...................................................................................................................................5-116
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Journal Copy Setup and Process....................................................................................................................5-117
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Agenda – Part 2 .............................................................................................................................................5-118
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Streamlined Consolidation Mappings Description .......................................................................................5-119
Streamlined Consolidation Mappings Benefits ............................................................................................5-122
O Streamlined Consolidation Mappings Setup and Process.............................................................................5-123

Agenda – Part 2 .............................................................................................................................................5-124

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Replacement for Disabled Accounts Description .........................................................................................5-125
Replacement for Disabled Accounts Benefits ..............................................................................................5-126
Replacement for Disabled Accounts Setup and Process...............................................................................5-127
Agenda – Part 2 .............................................................................................................................................5-128
Management Reporting and Security Description........................................................................................5-129
Management Reporting and Security ............................................................................................................5-130
Management Reporting and Security Benefits .............................................................................................5-133
Management Reporting and Security Setup .................................................................................................5-134
Agenda – Part 2 .............................................................................................................................................5-135
Data Access Security for Legal Entities and Ledgers Description ................................................................5-136
Data Access Security for Legal Entities and Ledgers Description ...............................................................5-140
Data Access Security for Legal Entities and Ledgers Benefits......................................................................5-142
Data Access Security for Legal Entities and Ledgers Setup and Process.....................................................5-143
Guided Demonstration 6 Overview: Entering Journals Using Different Balancing Segment Values (BSVs)
.......................................................................................................................................................................5-145
Guided Demonstration - Enter Journals Using Different Balancing Segment Values (BSVs)..................5-146
Agenda – Part 2 .............................................................................................................................................5-148
Journal Reversal Enhancements Description and Benefits...........................................................................5-149
Journal Reversal Enhancements Setup .........................................................................................................5-150
Agenda – Part 2 .............................................................................................................................................5-151
Control Accounts Description and Benefits ..................................................................................................5-152
Control Accounts Setup and Process .............................................................................................................5-153
Agenda – Part 2 .............................................................................................................................................5-154
Security for Definitions Description..............................................................................................................5-155
Security for Definitions .................................................................................................................................5-157
Security for Definitions - Example................................................................................................................5-158
Security for Definitions Benefits ..................................................................................................................5-159
Security for Definitions Setup and Process ..................................................................................................5-160
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Guided Demonstration 7 Overview: Defining Definition Access Sets and Secure Definitions ....................5-161
Guided Demonstration - Define Definition Access Sets and Secure Definitions ......................................5-162
Accounting and Reporting Sequencing Description......................................................................................5-166

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Agenda – Part 2 .............................................................................................................................................5-165
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Accounting and Reporting Sequencing Benefits ..........................................................................................5-167
Accounting and Reporting Sequencing Setup and Process ..........................................................................5-168
Agenda – Part 2 .............................................................................................................................................5-169
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Journal Line Reconciliation Description .......................................................................................................5-170
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Journal Line Reconciliation Benefits............................................................................................................5-171
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Journal Line Reconciliation Setup and Process ............................................................................................5-172
Agenda – Part 2 .............................................................................................................................................5-173
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Enhanced Intercompany Description.............................................................................................................5-174
Enhanced Intercompany Benefits ..................................................................................................................5-175
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Enhanced Intercompany Accounting and Balancing Rules Process.............................................................5-176
Enhanced Balancing Process – Intracompany Journals................................................................................5-177
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Enhanced Intercompany Accounting and Balancing Rules Setup................................................................5-179
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Guided Demonstration 8 Overview: Advanced Intercompany Global System .............................................5-181
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Guided Demonstration - Advanced Global Intercompany System............................................................5-182
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Summary........................................................................................................................................................5-199
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Oracle Fixed Assets .........................................................................................................................................6-1
Oracle Fixed Assets .......................................................................................................................................6-3
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Objectives ......................................................................................................................................................6-4
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Agenda...........................................................................................................................................................6-5
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Subledger Accounting Architecture Description ...........................................................................................6-7
Subledger Accounting Architecture Benefits ................................................................................................6-8
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Subledger Accounting Process ......................................................................................................................6-9
Subledger Accounting Architecture Summary ..............................................................................................6-10

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Guided Demonstration 1 Overview: Performing Asset Inquiries .................................................................6-11
Guided Demonstration -Perform Asset Inquiries.......................................................................................6-12
Practice 1 Overview: Performing Asset Inquiries ........................................................................................6-15
Practice - Perform Asset Inquiries .............................................................................................................6-16
Solution – Perform Asset Inquiries............................................................................................................6-18
Subledger Accounting Setup .........................................................................................................................6-24
Agenda...........................................................................................................................................................6-25
Enhanced Mass Additions for Legacy Conversions Description...................................................................6-26
Guided Demonstration 2 Overview: Adding Assets Using Web ADI..........................................................6-28
Guided Demonstration - Add Assets Using Web ADI ..............................................................................6-29
Practice 2 Overview: Adding Assets Using Web ADI (Optional)................................................................6-32
Practice - Add Assets Using Web ADI......................................................................................................6-33
Solution – Add Assets Using Web ADI ....................................................................................................6-36
Enhanced Mass Additions for Legacy Conversions Benefits ........................................................................6-39
Agenda...........................................................................................................................................................6-41
Automatic Preparation of Mass Additions Description .................................................................................6-42
Automatic Preparation of Mass Additions Benefits ......................................................................................6-43
Automatic Preparation of Mass Additions Process.......................................................................................6-44
Automatic Preparation of Mass Additions Process .......................................................................................6-45
Guided Demonstration 3 Overview: Automatic Preparation of Mass Addition Lines .................................6-46
Guided Demonstration - Automatic Preparation of Mass Addition Lines.................................................6-47
Automatic Preparation of Mass Additions Setup..........................................................................................6-56
Automatic Preparation of Mass Additions Setup Quickcodes......................................................................6-57
Agenda...........................................................................................................................................................6-58
Flexible Reporting Using XML Publisher Description .................................................................................6-59
Flexible Reporting Using XML Publisher Setup...........................................................................................6-62

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Benefits..........................................................................................................................................................6-61
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Flexible Reporting Using XML Publisher Example XML Output...............................................................6-63
Agenda...........................................................................................................................................................6-64
Automatic Depreciation Rollback Description..............................................................................................6-65
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Automatic Depreciation Rollback Benefits ...................................................................................................6-66
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Agenda...........................................................................................................................................................6-67
Enhanced Functionality for Energy Industry Description .............................................................................6-68
Practice 3 Overview: Setting Up Group Assets (Optional) ..........................................................................6-69
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Practice - Set Up Group Assets..................................................................................................................6-70
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Solution – Set Up Group Assets ................................................................................................................6-72
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Summary........................................................................................................................................................6-74
Oracle Purchasing ...........................................................................................................................................7-1
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Oracle Purchasing..........................................................................................................................................7-3
Objectives ......................................................................................................................................................7-4
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Agenda Part 1 ................................................................................................................................................7-5
Agenda Part 2 ................................................................................................................................................7-6
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Agenda Part 1 ................................................................................................................................................7-7
Professional Buyer's Work Center Description .............................................................................................7-8
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Professional Buyer's Work Center Benefits...................................................................................................7-9
Professional Buyer's Work Center Overview ................................................................................................7-10
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Professional Buyer's Work Center Requisition Management........................................................................7-11
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Guided Demonstration 1 Overview: Using Professional Buyer's Work Center ...........................................7-13
Guided Demonstration - Using the Buyer's Work Center..........................................................................7-14
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Practice 1 Overview: Creating a Purchase Order in the Buyer's Work Center ..............................................7-17
Practice - Create a Purchase Order in the Buyer's Work Center................................................................7-18
r aSolution - Create a Purchase Order in the Buyer's Work Center ...............................................................7-19

Professional Buyer's Work Center Requisition Management – Key Profile Options...................................7-22
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Agenda Part 1 ................................................................................................................................................7-26

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Enhanced Catalog Access Description ..........................................................................................................7-27
Enhanced Catalog Access Benefits................................................................................................................7-28
Enhanced Catalog Access Setup Preferences ................................................................................................7-29
Agenda Part 1 ................................................................................................................................................7-30
Document Styles Description ........................................................................................................................7-31
Document Styles Benefits .............................................................................................................................7-32
Document Styles Process – Source Document Reference .............................................................................7-33
Guided Demonstration 2 Overview: Creating and Using Document Styles .................................................7-34
Guided Demonstration - Using Document Styles......................................................................................7-35
Agenda Part 1 ................................................................................................................................................7-37
Procurement for Complex Services Description............................................................................................7-38
Procurement for Complex Services High Level Business Flow....................................................................7-39
Procurement for Complex Services New Purchasing Features.....................................................................7-40
Procurement for Complex Services Benefits................................................................................................7-42
Agenda Part 1 ................................................................................................................................................7-46
Multi-Org Access Control Benefits ...............................................................................................................7-48
MOAC Effects – Forms and Pages................................................................................................................7-49
Multi-Org Access Control Public APIs ........................................................................................................7-50
Agenda Part 1 ................................................................................................................................................7-51
E-Business Tax Description .........................................................................................................................7-52
E-Business Tax Benefits................................................................................................................................7-53
E-Business Tax Process – Tax Calculation ..................................................................................................7-54
E-Business Tax Setup...................................................................................................................................7-55
Document Publishing Enhancements Description.........................................................................................7-58

m y
Agenda Part 1 ................................................................................................................................................7-57
e
Document Publishing Enhancements Benefits ..............................................................................................7-60
Document Publishing Enhancements Setup and Process .............................................................................7-61
Document Publishing Enhancements Setup – PDF Template ......................................................................7-62
Document Publishing Enhancements Setup – RTF Template ......................................................................7-63
a d
Document Publishing Enhancements Process – Printing in Procurement Flow ...........................................7-65
Document Publishing Enhancements Process – Print Purchasing Document ..............................................7-66 A c
Document Publishing Enhancements Setup – Upload Template..................................................................7-64
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Agenda Part 1 ................................................................................................................................................7-68
r a
Document Attachments Description.............................................................................................................7-69
Document Attachments Benefits ..................................................................................................................7-71
O ly
Document Attachments Process ...................................................................................................................7-72
Document Attachments Setup .......................................................................................................................7-73
l & On
Document Attachments Setup – Define Purchasing Options .......................................................................7-74
Agenda Part 1 ................................................................................................................................................7-75
a e
Oracle Supplier Network Description............................................................................................................7-76
n
Transacting Over Oracle Supplier Network ..................................................................................................7-77
r s
Oracle Supplier Network Support Transactions with Purchasing..................................................................7-78
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Oracle Supplier Network Benefits.................................................................................................................7-79
t U
Oracle Supplier Network New Features ........................................................................................................7-80
I n
Agenda Part 2 ................................................................................................................................................7-82
e
Maintain Sourcing Rules/ASLs for Agreement Items ...................................................................................7-83
l
Maintain Sourcing Rules/ASLs for Agreement Items Benefits.....................................................................7-84
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Maintain Sourcing Rules/ASLs for Agreement Items - Define Rules for a Specific Plant ...........................7-85
r a
Agenda Part 2 ................................................................................................................................................7-87
Support for Contractor Purchasing Users Description...................................................................................7-88
O Support for Contractor Purchasing Users Benefits ........................................................................................7-89

Support for Contractor Purchasing Users Setup ...........................................................................................7-90

viii
Support for Contractor Purchasing Users Setup – Set Profile Option ..........................................................7-91
Agenda Part 2 ................................................................................................................................................7-93
Compliance to Packaging Constraints Description........................................................................................7-94
Compliance to Packaging Constraints Benefits.............................................................................................7-96
Compliance to Packaging Constraints Process Summary..............................................................................7-97
Compliance to Packaging Constraints Process – Apply Order Modifiers .....................................................7-98
Compliance to Packaging Constraints Process – Perform UOM Conversion ...............................................7-99
Compliance to Packaging Constraints Process – Perform Quantity Rounding..............................................7-100
Compliance to Packaging Constraints Setup and Process .............................................................................7-101
Agenda Part 2 ................................................................................................................................................7-104
Auto-Approval Tolerances for Change Orders Description ..........................................................................7-105
Auto-Approval Tolerances for Change Orders Setup and Process................................................................7-106
Agenda Part 2 ................................................................................................................................................7-107
EAM Support for Services Procurement Description....................................................................................7-108
EAM Support for Services Procurement Setup and Process .........................................................................7-109
Additional Considerations .............................................................................................................................7-111
Agenda Part 2 ................................................................................................................................................7-113
Model Complex Pricing for Blanket Line Items Description ........................................................................7-114
Model Complex Pricing for Blanket Line Items Benefits .............................................................................7-116
Model Complex Pricing for Blanket Line Items Setup and Process..............................................................7-117
Model Complex Pricing for Blanket Line Items Pricing Hierarchy ..............................................................7-118
Model Complex Pricing for Blanket Line Items Profile Options ..................................................................7-119
Mass Re-pricing of Purchasing Documents Description ...............................................................................7-125

m y
Agenda Part 2 ................................................................................................................................................7-124
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Mass Re-pricing of Purchasing Documents Benefits ...................................................................................7-126
Mass Re-pricing of Purchasing Documents Process.....................................................................................7-127
a d
Agenda Part 2 ................................................................................................................................................7-129
A c
New User Interface for Oracle Purchasing Setups Description .....................................................................7-130
New User Interface for Oracle Purchasing Setups Benefits .........................................................................7-132
Agenda Part 2 ................................................................................................................................................7-133
l e
Advanced Approval Support for Requisitions Description ...........................................................................7-134
c
Advanced Approval Support for Requisitions Benefits.................................................................................7-135
r a
Advanced Approval Support for Requisitions Parallel Approvals ...............................................................7-136
Advanced Approval Support for Requisitions Voting Method.....................................................................7-137
O ly
Advanced Approval Support for Requisitions Position Hierarchy Support .................................................7-138
Advanced Approval Support for Requisitions Setup and Process .................................................................7-139
l & On
Summary........................................................................................................................................................7-141
n a e
Oracle Accounts Payable ................................................................................................................................8-1
Oracle Accounts Payable...............................................................................................................................8-3
t e r U s
Objectives ......................................................................................................................................................8-4
Practices 1, 2, and 3 Overview: Prerequisite Practices ..................................................................................8-5
n
Practice - Create a New Employee (Required) ..........................................................................................8-6
I
Solution - Create a New Employee (Required) .........................................................................................8-8
Practice - Create a New User.....................................................................................................................8-11
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c l
Solution - Create a New User ....................................................................................................................8-12
Practice - Set Yourself Up As a Buyer (Required) ....................................................................................8-14
r aSolution - Set Yourself Up As a Buyer......................................................................................................8-15

Agenda...........................................................................................................................................................8-17
O
Suppliers in the Trading Community Architecture (TCA) ...........................................................................8-19
TCA Security by Functional Areas................................................................................................................8-20

ix
Payment Banks, Branches, and Accounts......................................................................................................8-21
Supplier Bank Accounts ................................................................................................................................8-22
Collaboration with Suppliers to Resolve Disputes ........................................................................................8-23
Invoice Requests............................................................................................................................................8-24
Practice 4 Overview: Creating a Supplier......................................................................................................8-26
Practice - Create a Supplier With Two Sites .............................................................................................8-27
Solution - Create a Supplier With Two Sites.............................................................................................8-30
Agenda...........................................................................................................................................................8-45
Deferred Recoverability ................................................................................................................................8-46
Deferred Recoverability Features ..................................................................................................................8-47
Deferred Recoverability Benefits ..................................................................................................................8-48
Deferred Recoverability Process Part 1: Set Up and Invoice .......................................................................8-49
Deferred Recoverability Process Part 2: Set Up and Payment .....................................................................8-50
Setup Taxes with Deferred Recoverability ....................................................................................................8-51
Agenda...........................................................................................................................................................8-53
Enhanced Asset Tracking ..............................................................................................................................8-54
Enhanced Asset Tracking Benefits ................................................................................................................8-55
Enhanced Asset Tracking Process .................................................................................................................8-56
Invoice Lines .................................................................................................................................................8-57
Practice 5 Overview: Matching to Purchase Order........................................................................................8-59
Practice - Match to Purchase Order ...........................................................................................................8-60
Solution - Match to Purchase Order ..........................................................................................................8-64
Agenda...........................................................................................................................................................8-71
Payment Requests Key Concepts ..................................................................................................................8-72
Payment Requests Description ......................................................................................................................8-73
m y
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Payment Requests Benefits............................................................................................................................8-75
Payment Requests Process.............................................................................................................................8-76
a d
Oracle Receivables – Refund Example .........................................................................................................8-77
Funds Disbursement Process- Loans .............................................................................................................8-78
A c
Payment Request – Additional Payables Actions..........................................................................................8-79
Payment Requests: Synchronizing Between Products..................................................................................8-80
Payment Requests Reporting.........................................................................................................................8-81
l e
Payment Requests Optional Setup.................................................................................................................8-82
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Payment Requests Miscellaneous Set up.......................................................................................................8-83
r a
Agenda...........................................................................................................................................................8-85
O ly
Payment Method Controls and Enhanced Payment Information...................................................................8-86
Key Concepts.................................................................................................................................................8-87
l & On
Evaluate Payment Choices – Reporting and Payment Instruction Requirements..........................................8-90
Enhanced Payment Method Controls Description.........................................................................................8-94
a e
Enhanced Payment Method Controls Benefits ..............................................................................................8-95
n
Enhanced Payment Method Controls Process – Enter Payables Document ..................................................8-96
r s
Expanded Payment Attribute Availability and Defaulting - Definition.........................................................8-99
e
Expanded Payment Attribute Availability and Defaulting Description.........................................................8-100
t U
Expanded Payment Attribute Availability and Defaulting - Benefits............................................................8-101
I n
Expanded Payment Attribute Availability and Defaulting – Enter Payables Document ...............................8-102
Expanded Payment Attribute Availability and Defaulting - Payment Attributes Defaulting ........................8-103
e
Expanded Payment Attribute Availability and Defaulting - UI.....................................................................8-104
l
Practice 6 Overview: Entering Quick Invoices..............................................................................................8-105
c
Practice - Enter Quick Invoices .................................................................................................................8-106
r aSolution - Enter Quick Invoices.................................................................................................................8-109

Configurable Payment Attribute Validation Description...............................................................................8-112
O Configurable Payment Attribute Validation Benefits....................................................................................8-113

Configurable Payment Attribute Validation Invoice: Scheduled Payment Holds .........................................8-114

x
Configurable Payment Attribute Validation Invoice: Invoice on Hold Report .............................................8-115
Practice 7 Overview: Running Hold Reports.................................................................................................8-116
Practice - Run Hold Reports ......................................................................................................................8-117
Solution – Run Hold Reports.....................................................................................................................8-118
Configurable Payment Attribute Validation Payment: Payment Processing Choices ...................................8-119
Practice 8 Overview: Create a Payment Process Request Template..............................................................8-121
Practice - Create a Payment Process Request Template ............................................................................8-122
Solution - Create a Payment Process Request Template ...........................................................................8-124
Configurable Payment Attribute Validation Payment: Payment Processing Choices ...................................8-127
Practice 9 Overview: Creating a Payment Process Request ..........................................................................8-129
Practice - Create a Payment Process Request with Straight-Through Processing for a Payment Method of Check
...................................................................................................................................................................8-130
Solution – Create a Payment Process Request with Straight-Through Processing for a Payment Method of
Check.........................................................................................................................................................8-134
Expanded Payment Attribute Availability Payment Instruction Formats and Reporting - Benefits..............8-143
Expanded Payment Attribute Availability Payment Instruction Formats and Reporting ..............................8-144
Payment Instruction Formats and Reporting XML Publisher Templates ......................................................8-145
Payment Instruction Formats & Reporting XML Publisher Templates.........................................................8-146
Expanded Payment Attribute Availability Payment Instruction Formats and Reporting .............................8-147
Formats & Reporting Payment Process .........................................................................................................8-148
Formats and Reporting Payment Process ......................................................................................................8-149
Formats and Reporting Payment Process ......................................................................................................8-151
Setup Payment Method Controls and Enhanced Payment.............................................................................8-153
Configurable Payment Attribute Validation Setup .......................................................................................8-154
Configurable Payment Attribute Validation Setup Consideration................................................................8-155
Configurable Payment Attribute Validation Setup: View Available Validations..........................................8-157
m y
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Configurable Payment Attribute Validation Setup – Payment Methods .......................................................8-158
Configurable Payment Attribute Validation Setup: Payment Process Format ..............................................8-159
Configurable Payment Attribute Validation Setup: Payment Process Profile ...............................................8-160
Expanded Payment Attribute Availability Payment Instruction Formats and Reporting Setup ....................8-161
a d
A c
Enhanced Payment Method Controls Setup ..................................................................................................8-162
Expanded Payment Attribute Availability and Defaulting - Setup................................................................8-163
l e
Agenda...........................................................................................................................................................8-165
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Self Assessed Tax Description ......................................................................................................................8-166
r a
Self Assessed Tax Features ...........................................................................................................................8-167
Self Assessed Tax Benefits............................................................................................................................8-168
O ly
Self Assessed Tax Predetermined Process.....................................................................................................8-169
Self Assessed Tax Process – 1. Predetermined..............................................................................................8-170
l & On
Self Assessed Tax: Predetermined Process – Invoice Entry..........................................................................8-171
Self Assessed Tax: Predetermined Process – Calculate Tax .........................................................................8-172
a e
Self Assessed Tax: Predetermined Process – Calculate Tax Example .........................................................8-173
n
Self Assessed Tax: Predetermined Process – Calculate Tax .........................................................................8-174
r s
Self Assessed Tax Process – Account ...........................................................................................................8-175
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Self Assessed Tax Setup – Reporting Choices ..............................................................................................8-177
t U
Self Assessed Tax Process – Report ..............................................................................................................8-179
I n
Self Assessed Tax Manual Determination Process........................................................................................8-180
Self Assessed Tax Process – 2. Manual Determination.................................................................................8-181
e
Self Assessed Tax: Manual Determination Set Up - E-Business Tax Controls.............................................8-182
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Self Assessed Tax: Manual Determination Process – Invoice Entry.............................................................8-183
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Self Assessed Tax: Manual Determination Process – Calculate Tax ............................................................8-184
r a
Self Assessed Tax: Manual Determination Process – Calculate Tax Example .............................................8-185
Setup Self Asessed Tax .................................................................................................................................8-187
O Self Assessed Tax: Predetermined Set Up First Party, Party Tax Profile......................................................8-188
Self Assessed Tax: Predetermined Set Up – First Party, Party Tax Profile...................................................8-189

xi
Self Assessed Tax: Predetermined Set Up – Supplier Party Tax Profile .......................................................8-190
Agenda...........................................................................................................................................................8-192
Oracle Payables For Complex Contract Terms .............................................................................................8-193
Oracle Payables for Complex Contract Terms Benefits ................................................................................8-194
Complex Contract Terms Key Concepts .......................................................................................................8-195
Oracle Procurement to Payables: High Level Business Flow.......................................................................8-197
Integrated Products: High Level Business Flow............................................................................................8-203
Oracle e-Business Tax Setup: Tax Configuration .........................................................................................8-204
Business Flow: Payables Distinction.............................................................................................................8-205
Contract Delivery Invoicing ..........................................................................................................................8-206
Invoice Workbench: Contract Delivery Invoices ..........................................................................................8-207
Oracle Payables: Ensure Billing Compliance ................................................................................................8-208
Oracle Payables: Tolerances and Holds.........................................................................................................8-209
Oracle Payables: Holds Notification Options ................................................................................................8-211
Practices 10 and 11 Overview: Placing and Releasing Holds.......................................................................8-212
Practice - Place a Hold on an Invoice ........................................................................................................8-213
Solution - Place a Hold on an Invoice .......................................................................................................8-214
Practice - Release Holds ............................................................................................................................8-215
Solution - Release Holds ...........................................................................................................................8-216
Oracle Payables for Complex Contract Terms Benefits ................................................................................8-217
Oracle Procurement to Payables: Setup Overview ........................................................................................8-218
Oracle Procurement Setup .............................................................................................................................8-219
Payables Setup: Financial Options ................................................................................................................8-221
Payables Setup – Payables Options ...............................................................................................................8-222
Payables Setup: Invoice Tolerances ..............................................................................................................8-223
Shared Setup: Supplier Terms & Controls ....................................................................................................8-224
Oracle Approvals Management Setup Approval Rules .................................................................................8-225
m y
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Oracle eBusiness Tax Setup: Tax Configuration...........................................................................................8-226
Prepayments: Tax Configuration Example....................................................................................................8-227
Practice 12 Overview: Setting Up US Sales Tax..........................................................................................8-228
a d
Practice - Set Up US Sales Tax .................................................................................................................8-229
A c
Solution – Set Up US Sales Tax ................................................................................................................8-235
Practice 13 Overview: Entering an Invoice with US Sales Tax Lines...........................................................8-244
Practice - Enter an Invoice with US Sales Tax Lines ................................................................................8-245
l e
Solution - Enter an Invoice with US Sales Tax Lines................................................................................8-246
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r a
Agenda...........................................................................................................................................................8-250
Multi-Org Access Control in Payables Description.......................................................................................8-251
O ly
Multi-Org Access Control in Payables Benefits............................................................................................8-254
Multi-Org Access Control Process ................................................................................................................8-255
l & On
Multi-Org Access Control Process, Invoice Entry ........................................................................................8-256
Multi-Org Access Control Process, Payment Templates...............................................................................8-258
a e
Multi-Org Access Control Process, Controlling Payables Periods...............................................................8-259
n
Multi-Org Access Control Process, Submitting Concurrent Request ...........................................................8-260
r s
Multi-Org Access Control Process, Submitting Standard Report..................................................................8-261
e
Multi-Org Access Control Process, Open Account Balances Listing Report................................................8-262
t U
Multi-Org Access Control Setup ...................................................................................................................8-263
I n
Multi-Org Access Control Payables Setup ....................................................................................................8-264
c l e
Summary........................................................................................................................................................8-266
Oracle Receivables...........................................................................................................................................9-1
r a
Oracle Receivables ........................................................................................................................................9-3
Objectives ......................................................................................................................................................9-4
O
Practice 1 Overview: Modify Your Responsibilities .....................................................................................9-5
Practice - Modify Your Responsibilities....................................................................................................9-6

xii
Solution - Modify Your Responsibilities...................................................................................................9-7
Agenda...........................................................................................................................................................9-8
New and Changed Features for Balance Forward Billing .............................................................................9-10
Balance Forward Billing Description ............................................................................................................9-11
Balance Forward Billing Benefits .................................................................................................................9-14
Balance Forward Billing Setup and Process..................................................................................................9-16
Balance Forward Billing Setup Define Billing Cycle....................................................................................9-18
Balance Forward Billing Setup Define Payment Term .................................................................................9-20
Balance Forward Billing Setup Customer Profile Class................................................................................9-22
Practice 2 Overview: Create a Customer Class Profile..................................................................................9-24
Practice - Create a Customer Profile Class ................................................................................................9-25
Solution - Create a Customer Profile Class ...............................................................................................9-26
Practices 3-7 Overview: Prerequisite Practices .............................................................................................9-27
Practice - Create a Customer Using the Customers Set of Pages...............................................................9-28
Solution - Create a Customer Using the Customers Set of Pages..............................................................9-30
Practice - Add Customer Details Using the Customers Set of Pages.........................................................9-32
Solution - Add Customer Details Using the Customers Set of Pages........................................................9-35
Practice - Add Account Details Using the Customers Set of Pages...........................................................9-38
Solution - Add Account Details Using the Customers Set of Pages..........................................................9-41
Practice - Add Account Site Details Using the Customers Set of Pages ...................................................9-45
Solution - Add Account Site Details Using the Customers Set of Pages...................................................9-49
Practice - Create a Customer Account Relationship ..................................................................................9-54
Solution - Create a Customer Account Relationship .................................................................................9-55
Balance Forward Billing Setup Account & Site Profile ................................................................................9-56
Balance Forward Billing Setup Account Level Bill Example .......................................................................9-58
Balance Forward Billing Setup Site Level Bill Example .............................................................................9-59
Oracle BPA Rules Setup................................................................................................................................9-60
Balance Forward Billing Process Enter Transaction ....................................................................................9-62
m y
e
Balance Forward Billing Process Imported Transactions.............................................................................9-63
Balance Forward Billing Process Creating Bills ..........................................................................................9-64
Balance Forward Billing Process Generating Bill Logic..............................................................................9-65
a d
Balance Forward Billing Use Cases ..............................................................................................................9-67
A c
Balance Forward Billing Process Generate Bill Program.............................................................................9-68
Balance Forward Billing Process Confirm Bill .............................................................................................9-70
Summary Balance Forward Bill Example .....................................................................................................9-72
l e
Detail Balance Forward Bill ..........................................................................................................................9-73
c
Balance Forward Billing Process BPA Print Program..................................................................................9-74
r a
Balance Forward Billing Process Disable Payment Terms ...........................................................................9-76
Balance Forward Billing Process Change Payment Terms ..........................................................................9-77
O ly
Balance Forward Billing Dependencies and Interactions .............................................................................9-78
Balance Forward Billing Functional Upgrade Script....................................................................................9-79
l & On
Demo 1 Overview: Balance Forward Billing ................................................................................................9-82
Guided Demonstration - Balance Forward Billing ....................................................................................9-83
a e
Practice 8: Overview Printing Balance Forward Bills ..................................................................................9-89
n
Practice - Print Balance Forward Bills.......................................................................................................9-90
r s
Solution - Print Balance Forward Bills......................................................................................................9-92
e
Agenda...........................................................................................................................................................9-95
t U
Credit Card Chargeback Description.............................................................................................................9-96
I n
Credit Card Chargeback Benefits ..................................................................................................................9-98
Credit Card Chargeback Process ...................................................................................................................9-99
e
Credit Card Chargeback Process Receive Receipt .......................................................................................9-102
l
Credit Card Chargeback Process Record Credit Card Chargeback ..............................................................9-104
c
Credit Card Chargeback Process Validate Credit Card Chargeback ............................................................9-105
r a
Credit Card Chargeback Process Validate Credit Card Chargeback .............................................................9-106
Credit Card Chargeback Process Validate Credit Card Chargeback ............................................................9-107
O Credit Card Chargeback Setup ......................................................................................................................9-108

Practices 9-11 Overview: Applying and Updating a Receipt at Line Level ..................................................9-109

xiii
Practice - Create an Invoice .......................................................................................................................9-110
Solution - Create an Invoice ......................................................................................................................9-111
Practice - Enter a Manual Receipt .............................................................................................................9-112
Solution - Enter a Manual Receipt.............................................................................................................9-113
Practice - Apply and Update Receipt at Line Level...................................................................................9-114
Solution - Apply and Update Receipt at Line Level..................................................................................9-115
Agenda...........................................................................................................................................................9-117
Legal Entity Background...............................................................................................................................9-118
Legal Entity Model........................................................................................................................................9-119
Legal Entity Background...............................................................................................................................9-120
Legal Entity Description................................................................................................................................9-121
Legal Entities and Accounting.......................................................................................................................9-122
Legal Entities and Shared Accounting...........................................................................................................9-123
Legal Entity Description Defaulting for Transactions...................................................................................9-124
Legal Entity Description Defaulting for Transactions..................................................................................9-125
Legal Entity Description Defaulting for Receipts ........................................................................................9-126
Legal Entity Benefits .....................................................................................................................................9-128
Legal Entity Setup and Automated Process...................................................................................................9-129
Legal Entity Setup Update Transaction Type...............................................................................................9-131
Legal Entity Setup Update Batch Source .....................................................................................................9-132
Legal Entity Process - AutoInvoice ...............................................................................................................9-133
Legal Entity Setup and Manual Process ........................................................................................................9-136
Legal Entity Process – Manual Transaction ..................................................................................................9-138
Legal Entity Process – On Account Credit Memos .......................................................................................9-139
Legal Entity Process – Bills Receivable ........................................................................................................9-140
Legal Entity Process - Receipts .....................................................................................................................9-141
Legal Entity Process – Claim LE Defaulting.................................................................................................9-142
m y
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Agenda...........................................................................................................................................................9-144
E-Business Tax ..............................................................................................................................................9-145
Receivables E-Business Tax Integration Key Benefits.................................................................................9-146
a d
E-Business Suite Tax Prior to Release 12 .....................................................................................................9-148
A c
E-Business Suite Tax Integration 12.0 ..........................................................................................................9-149
Architecture of a Tax Line in E-Business Tax...............................................................................................9-150
Example of US Sales Tax in 12.0..................................................................................................................9-152
l e
Example of UK VAT Tax in 12.0 .................................................................................................................9-153
c
Migrating Taxes from 11.5 to 12.0 ................................................................................................................9-154
r a
Migrating of Tax Codes and Tax Group Codes.............................................................................................9-156
Use of Tax Rate Codes in Receivables..........................................................................................................9-158
O ly
Use of Tax Classifications in Receivables.....................................................................................................9-159
Setting Up New Taxes in E-Business Tax.....................................................................................................9-160
l & On
Receivables Specific Tax Setups ...................................................................................................................9-162
System Options..............................................................................................................................................9-163
a e
Customer Tax ................................................................................................................................................9-164
n
Transaction Type ...........................................................................................................................................9-165
r s
Receivables Activity......................................................................................................................................9-166
e
Adjustments, Receipt Discounts, and Recoverable Tax ................................................................................9-167
t U
Standard Memo Lines....................................................................................................................................9-168
I n
Legal Entity and Ship To...............................................................................................................................9-169
Transactions and Migrated Taxes ..................................................................................................................9-171
e
Transactions and Migrated Taxes: Key Differences.....................................................................................9-172
l
Transactions and New Taxes .........................................................................................................................9-174
c
Transactions and Manual Taxes ....................................................................................................................9-175
r a
Agenda...........................................................................................................................................................9-177
O Subledger Accounting Overview...................................................................................................................9-178

Subledger Accounting Benefits .....................................................................................................................9-179

xiv
Subledger Accounting in Receivables Overview ..........................................................................................9-180
Subledger Accounting in Receivables Benefits.............................................................................................9-181
Subledger Accounting in Receivables Process Submit Accounting Program ...............................................9-182
Subledger Accounting in Receivables Process Create/View Accounting ....................................................9-183
Subledger Accounting in Receivables Process Online Create Accounting ...................................................9-184
Subledger Accounting in Receivables Setup .................................................................................................9-185
Subledger Accounting in Receivables Setup Ledgers and SLAMs ...............................................................9-186
Subledger Accounting in Receivables Setup Sources for Accounting Definitions........................................9-187
Subledger Accounting in Receivables Setup Predefined Event Classes/Types .............................................9-188
Subledger Accounting in Receivables Setup AR Predefined Event Classes/Types .....................................9-189
Subledger Accounting in Receivables Setup Anatomy of a Journal Entry....................................................9-190
Subledger Accounting in Receivables Setup Journal Line Types .................................................................9-191
Subledger Accounting in Receivables Setup Account Derivation Rule ........................................................9-192
Subledger Accounting in Receivables Setup Journal Line Definition of Invoices ........................................9-193
Subledger Accounting in Receivables Setup Assigning the JLD to the AAD...............................................9-194
Subledger Accounting in Receivables Setup Assigning the AAD to the SLAM...........................................9-195
Subledger Accounting in Receivables Setup Assigning the SLAM to the Ledger ........................................9-196
Subledger Accounting in Receivables Setup Predefined SLAMs ................................................................9-197
Subledger Accounting in Receivables Process Invoice Accounting..............................................................9-198
Subledger Accounting in Receivables Process Multi-Fund Receivables Accounting ...................................9-199
Subledger Accounting in Receivables Process Adjustment Accounting .......................................................9-200
Subledger Accounting in Receivables Process Receipt Application Accounting..........................................9-201
Agenda...........................................................................................................................................................9-204
Obsolescence and Replacement of Features Description ..............................................................................9-205
Demo 2 Overview: Oracle Advanced Collections.........................................................................................9-206
Guided Demonstration - Oracle Advanced Collections.............................................................................9-207
m y
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Practice 12 Overview: Using the New Customer Standard HTML Interface................................................9-215
Practice - Using the New Customer Standard HTML Interface ................................................................9-216
Solution - Using the New Customer Standard HTML Interface................................................................9-218
a d
A c
Obsolescence and Replacement of Features Benefits....................................................................................9-223
Transition to New Features Collections Workbench ....................................................................................9-224
Transition to New Features Collections Workbench - Menu and Forms......................................................9-226
l e
Transition to New Features Collections Workbench - Account Details .......................................................9-228
c
Transition to New Features Collections Workbench - Dunning Reprint ......................................................9-229
r a
Transition to New Features Bills Receivable.................................................................................................9-230
Transition to New Features Trade Accounting..............................................................................................9-231
O ly
Transition to New Features Customer Standard Form..................................................................................9-232
Transition to New Features Tax Setup and Calculation ...............................................................................9-233
l & On
Transition to New Features Tax Reporting...................................................................................................9-234
Transition to New Features Subledger Accounting ......................................................................................9-235
a e
Transition to New Features COGS and Revenue Matching .........................................................................9-236
n
Transition to New Features AR Customer Supplier Netting ........................................................................9-237
r s
Transition to New Features On Account Credit Memo Refund ...................................................................9-238
e
Transition to New Features Consolidated Billing.........................................................................................9-239
t U
Agenda...........................................................................................................................................................9-240
I n
Centralized Payment Process Description .....................................................................................................9-241
Centralized Payment Process Setup and Process...........................................................................................9-244
e
Centralized Payment Process Setup Create Receipt Class/Method ...............................................................9-245
l
Centralized Payment Process Process Invoice Payment...............................................................................9-247
c
Centralized Payment Process Error Handling................................................................................................9-248
r a
Centralized Payment Process Setup Customer's Payment Details.................................................................9-249
O Agenda...........................................................................................................................................................9-251
Automated Refunds Description....................................................................................................................9-252

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Automated Refunds Setup and Process .........................................................................................................9-253
Automated Refunds Setup Receivables Activity...........................................................................................9-254
Automated Refunds Setup Transaction Sources............................................................................................9-255
Automated Refunds Process Applications Form ...........................................................................................9-257
Automated Refunds Process New Refund Attributes Form ..........................................................................9-258
Automated Refunds Process View Refund Status .........................................................................................9-259
Agenda...........................................................................................................................................................9-261
AP/AR Netting Description...........................................................................................................................9-262
AP/AR Netting Benefits ................................................................................................................................9-263
AP/AR Netting Process Access .....................................................................................................................9-264
AP/AR Netting Process Accessing ................................................................................................................9-265
Demo 3 Overview: AP/AR Netting ...............................................................................................................9-266
Demo - AP/AR Netting .............................................................................................................................9-267
Agenda...........................................................................................................................................................9-272
Daily Revenue Description............................................................................................................................9-273
Daily Revenue Setup and Process .................................................................................................................9-278
Daily Revenue Setup Accounting Rules........................................................................................................9-279
Daily Revenue Process Create Invoice Line..................................................................................................9-280
Agenda...........................................................................................................................................................9-282
Revenue Contingencies Overview.................................................................................................................9-283
Revenue Contingencies Description..............................................................................................................9-284
Revenue Contingencies Setup and Process....................................................................................................9-287
Revenue Contingencies Setup Policy Threshold ...........................................................................................9-288
Revenue Contingencies Setup Seeded Contingencies ..................................................................................9-289
Revenue Contingencies Setup Contingency Codes/ID..................................................................................9-290
Revenue Contingencies Setup Create Rules ..................................................................................................9-291
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Revenue Contingencies Process Contingency Assignment ..........................................................................9-292
Revenue Contingency Process Manage Contingencies ................................................................................9-293
Practice 13 Overview: Setting Up Revenue Contingencies..........................................................................9-295

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Practice - Set Up Revenue Contingencies .................................................................................................9-296
Solution – Set Up Revenue Contingencies ................................................................................................9-298
Agenda...........................................................................................................................................................9-300
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COGS and Revenue Matching Description ...................................................................................................9-301
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COGS and Revenue Matching Benefits ........................................................................................................9-302
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COGS and Revenue Matching Process COGS Recognition ........................................................................9-303
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Agenda...........................................................................................................................................................9-305
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Multi-Org Access Control Benefits ...............................................................................................................9-308
Receivables & Multi-Org Access Control .....................................................................................................9-309
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Multi-Org Access Control Process ................................................................................................................9-312
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Multi-Org Access Control Reporting ............................................................................................................9-313
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Multi-Org Access Control Reporting Process ...............................................................................................9-314
Summary........................................................................................................................................................9-316
U
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Oracle Cash Management...............................................................................................................................10-1
I
Oracle Cash Management..............................................................................................................................10-3
Objectives ......................................................................................................................................................10-4
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Agenda...........................................................................................................................................................10-5
Bank Account Model Definition ...................................................................................................................10-7
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Bank Account Model Integration ..................................................................................................................10-8
Bank Account Model Benefits.......................................................................................................................10-9
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Cash Management Security Components ......................................................................................................10-10
Bank Account Model Summary ....................................................................................................................10-12

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Practice 1 Overview: Creating a Bank Account ...........................................................................................10-13
Practice - Create a Bank Account ..............................................................................................................10-14
Solution - Create a Bank Account .............................................................................................................10-16
Bank Account Model Setup and Process.......................................................................................................10-19
Agenda...........................................................................................................................................................10-21
Bank Account Balances and Interest Calculations Description.....................................................................10-22
Bank Account Balances and Interest Calculations Benefits ..........................................................................10-23
Bank Account Balances and Interest Calculations Maintenance..................................................................10-24
Bank Account Balances and Interest Calculations Summary .......................................................................10-25
Bank Account Balances and Interest Calculations Setup .............................................................................10-26
Agenda...........................................................................................................................................................10-28
Bank Account Transfers Description............................................................................................................10-29
Bank Account Transfers Benefits .................................................................................................................10-31
Bank Account Transfers Process ...................................................................................................................10-32
Bank Account Transfers Dependencies and Interactions ..............................................................................10-33
Bank Account Transfers Summary................................................................................................................10-34
Bank Account Transfers Setup ......................................................................................................................10-35
Bank Account Transfers Setup – Set System Profile....................................................................................10-36
Practice 2 Overview: Setting Up Payment Templates ..................................................................................10-37
Practice - Create a Bank Transfer ..............................................................................................................10-38
Solution - Create a Bank Transfer .............................................................................................................10-39
Practice 3 Overview: Setting Up Bank Transfers .........................................................................................10-41
Practice - Create a Bank Transfer ..............................................................................................................10-42
Solution - Create a Bank Transfer .............................................................................................................10-43
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Agenda...........................................................................................................................................................10-46
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Subledger Accounting Description...............................................................................................................10-47
Subledger Accounting Benefits ....................................................................................................................10-49
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Subledger Accounting Key Concepts Flow..................................................................................................10-51d
Subledger Accounting Key Concepts ............................................................................................................10-50
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Subledger Accounting Summary...................................................................................................................10-52
Agenda...........................................................................................................................................................10-54
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Bank Statement Reconciliation Description ..................................................................................................10-55
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Bank Statement Reconciliation Benefits ......................................................................................................10-56
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Bank Statement Reconciliation Setup............................................................................................................10-57
Agenda...........................................................................................................................................................10-58
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Multi-Org Access Control and Security Description....................................................................................10-59
Multi-Org Access Control and Security Benefits ..........................................................................................10-61
l & On
Guided Demonstration 1 Overview: Creating a Security Profile.................................................................10-62
Guided Demonstration - Create Security Profile .......................................................................................10-63
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Guided Demonstration 2 Overview: Creating Security Grants.....................................................................10-66
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Guided Demonstration - Create Security Grants .......................................................................................10-67
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Multi-Org Access Control and Security Summary ........................................................................................10-69
e
t U
Agenda...........................................................................................................................................................10-71
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Cash Pooling Description ..............................................................................................................................10-72
Creating Cash Pools.......................................................................................................................................10-73
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Viewing and Updating Cash Pools ................................................................................................................10-74
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Practices 5 and 6 Overview: Creating Cash Pools........................................................................................10-75
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Practice - Create Notional Cash Pool ........................................................................................................10-76
r aSolution - Create Notional Cash Pool........................................................................................................10-77

Practice - Create Physical Cash Pool .........................................................................................................10-78
O Solution - Create Physical Cash Pool ........................................................................................................10-79


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Summary........................................................................................................................................................10-81
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xviii
Preface
Profile
Before You Begin This Course
• Functional knowledge of Oracle General Ledger
• Functional knowledge of Oracle Payables
• Functional knowledge of Oracle Purchasing
• Functional knowledge of Oracle Receivables
• Functional knowledge of Oracle Cash Management
Prerequisites
• There are no prerequisites for this course.
How This Course Is Organized
This is an instructor-led course featuring lecture and hands-on exercises. Online demonstrations
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and written practice sessions reinforce the concepts and skills introduced.
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Related Publications
Additional Publications
• System release bulletins
• Installation and user’s guides
• Read-me files
• International Oracle User’s Group (IOUG) articles
• Oracle Magazine
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xx
Typographic Conventions
Typographic Conventions in Text
Convention Element Example
Bold italic Glossary term (if The algorithm inserts the new key.
there is a glossary)
Caps and Buttons, Click the Executable button.
lowercase check boxes, Select the Can’t Delete Card check box.
triggers, Assign a When-Validate-Item trigger to the ORD block.
windows Open the Master Schedule window.
Courier new, Code output, Code output: debug.set (‘I”, 300);
case sensitive directory names, Directory: bin (DOS), $FMHOME (UNIX)
(default is filenames, Filename: Locate the init.ora file.
lowercase) passwords, Password: User tiger as your password.
pathnames, Pathname: Open c:\my_docs\projects
URLs, URL: Go to http://www.oracle.com
user input,
User input: Enter 300
usernames
Username: Log on as scott
Initial cap Graphics labels Customer address (but Oracle Payables)
(unless the term is a
Italic
proper noun)
Emphasized words Do not save changes to the database.
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and phrases,
titles of books and Reference Manual.
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For further information, see Oracle7 Server SQL Language
courses,
variables
Enter user_id@us.oracle.com, where user_id is the
name of the user.
ca
Quotation
marks
Interface elements
with long names A
Select “Include a reusable module component” and click Finish.
e
that have only
initial caps;
c l
This subject is covered in Unit II, Lesson 3, “Working with
Objects.”
lesson and chapter
titles in cross-
r a
Uppercase
references
SQL column O ly Use the SELECT command to view information stored in the
names, commands,
l
functions, schemas,& On LAST_NAME
column of the EMP table.
table names
n a e
Arrow
Brackets
Commas
Menu paths
Key names
t e r
Key sequences
U s Select File > Save.
Press [Enter].
Press and release keys one at a time:
Plus signs I n
Key combinations
[Alternate], [F], [D]
Press and hold these keys simultaneously: [Ctrl]+[Alt]+[Del]
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Typographic Conventions in Code
Convention Element Example
Caps and Oracle Forms When-Validate-Item
lowercase triggers
Lowercase Column names, SELECT last_name
table names FROM s_emp;
Passwords DROP USER scott

IDENTIFIED BY tiger;
PL/SQL objects OG_ACTIVATE_LAYER
(OG_GET_LAYER (‘prod_pie_layer’))
Lowercase Syntax variables CREATE ROLE role

italic
Uppercase SQL commands and SELECT userid
functions FROM emp;
Typographic Conventions in Oracle Application Navigation Paths

This course uses simplified navigation paths, such as the following example, to direct you
through Oracle Applications.
(N) Invoice > Entry > Invoice Batches Summary (M) Query > Find (B) Approve
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This simplified path translates to the following:
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1. (N) From the Navigator window, select Invoice then Entry then Invoice Batches
ca
Summary.
e A
2.
l
(M) From the menu, select Query then Find.
c
3. (B) Click the Approve button.
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Notations:
O ly
(N) = Navigator
l & On
(M) = Menu
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(T) = Tab
t e r U s
(B) = Button
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(I) = Icon
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r a (H) = Hyperlink
O (ST) = Sub Tab

xxii
Typographical Conventions in Oracle Application Help System Paths
This course uses a “navigation path” convention to represent actions you perform to find
pertinent information in the Oracle Applications Help System.
The following help navigation path, for example—
(Help) General Ledger > Journals > Enter Journals
—represents the following sequence of actions:
1. In the navigation frame of the help system window, expand the General Ledger entry.
2. Under the General Ledger entry, expand Journals.
3. Under Journals, select Enter Journals.
4. Review the Enter Journals topic that appears in the document frame of the help system
window.
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Oracle Financials Overview
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Chapter 1
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Copyright © Oracle Corporation, 2007. All rights reserved.

Chapter 1 - Page 1
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Chapter 1 - Page 2
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Chapter 1 - Page 3
Objectives
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Chapter 1 - Page 4
Why R12?
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Why R12?
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Release 12 is defined as “The Global Business Release.” Global is not just a geographic
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perspective, but also a comprehensive perspective; release 12 functionality spans across both
industries and business functions.
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•
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Flexible, centralized, global accounting structure
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•
•
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300+ enhancements to best practice business processes
Comprehensive governance, risk and compliance platform
•
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Truly integrated performance management
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•
•
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Real-time profitability analysis
Unified financial and operational analytic applications
•
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Integration with core industry applications
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Self-service report formats and publication
r a• Superior ownership experience
O

Chapter 1 - Page 5
Architecture
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Architecture
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The major components of the new architecture include:
• Multi-Org Access Control
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• Ledger and Ledger Sets
• Subledger Accounting O ly
• Tax Engine
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• Intercompany
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• Bank Model
t e r U s
Benefits of the new architecture include:
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• Maintain 1 Ledger with 1 OU for each Company (LE)
- Get privacy for each company’s data
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- Manage each company’s national and local compliance
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• Combine many companies’ ledgers in a set
- Share GL services and workload
O - Get combined data

Chapter 1 - Page 6
• Use MOAC to enable access to many OUs
- Process in and report across many Companies’ Operating Units
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Chapter 1 - Page 7
Multi-Org Access Control (MOAC)
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MOAC: Multi-Org Access Control
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MOAC provides role based access to Operating Units, and allows you to perform multiple
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tasks across operating units without changing responsibilities.
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Chapter 1 - Page 8
Subledger Accounting
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Subledger accounting provides centralized rules and a common repository, and global control
of your accounts. Features include:
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• Accounting Rules
- SarBox & 8th Dir. O ly
- User Editable
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• Subledger Daybooks (Journals)
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• Subledger Balancing
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• Reports, inquiries, open items, et cetera
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• Multiple Representations
• Common Posting to GL Ledgers
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• Real time or Periodic
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Benefits of subledger accounting are:
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• Faster, Easier Reconciliation
O • Corporate Rules = Accounting Standardization

Chapter 1 - Page 9
• Local Rules = Improved Local Compliance
• Automate “Apples to Apples” Adjustments
• Improved Audit- ability
• Improved Internal Control
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Chapter 1 - Page 10
Ledger
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Chapter 1 - Page 11
Ledger Sets
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Ledger Sets
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Ledger sets provide global information at a glance. Ledger sets share a chart of accounts and a
calendar.
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The key benefits to many Ledgers in one set are:
• Decision-driving business information always available
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• Simpler processing and General Ledger management
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• Data and definitions that can be shared and secured
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Chapter 1 - Page 12
Ledger Architecture
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Ledger Architecture
Typical Ledger Sets:
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• All IAS/IFRS or US GAAP ledgers
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• 26 Subs in 1 country
• 35 countries in 1 region O ly
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Chapter 1 - Page 13
Legal Organization
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Legal Organization
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Legal Entities (Les) such as Parent companies, own or control subsidiaries. There are no group
entities
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• LEs pay the taxes and therefore need tax registrations
• Trade between LEs needs intercompany
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• LEs own the money and bank accounts
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• LEs file the accounts and take care of accounting
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• LEs comply with whatever needs compliance: “legal” in LE
U s
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Chapter 1 - Page 14
Enhanced Legal Support
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Enhanced Legal Support
• Did not replace GRE/LE - employer
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• Added TCA parties for the Authorities
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• Added a Legal Entity Configurator
O ly
• Introduced the following new terms:
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- Jurisdiction: A legislative category and territory, has legal rules
a e
- Legal Authority: Legal body who enforces legislation, collects fees / taxes, etc
n
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- Legal Function: Functions that companies are required to perform (e.g. produce
yearly report, pay taxes, etc.)
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entities
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- Legal Associations: Mapping companies to Ledgers, BSVs, OUs and other system
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Chapter 1 - Page 15
Benefits of Legal Entities
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Benefits of Legal Entities
Examples of using Legal Entities:
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• Accounting Setup Manager: Assign books, bookkeeping rules and currency
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management to your registered companies
• EBusiness Tax: Have your registered companies calculate, file, and pay the transaction
taxes they owe
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documentation
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• Intercompany: Do business between and across your registered companies with full legal
t e r U s
• Bank Model: Have your registered companies use their money to pay their bills, etc.
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Chapter 1 - Page 16
Oracle E-Business Tax
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Architecture Overview
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Oracle E-Business Tax (eBTax) consists of a tax knowledge base, a variety of tax services
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that respond to specific tax events, a set of repositories (for tax content and tax recording)
that allow customers to manage their local tax compliance needs in a proactive manner,
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as well as the ability to integrate with external tax content providers through a single
integration point.
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Chapter 1 - Page 17
Advanced Global Intercompany System
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Advanced Global Intercompany System
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• Addresses the Top Barrier to a Fast Closel
• Generates subledger invoices
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O ly
• Controls transaction entry with Intercompany Calendar
• Has a Fully Configurable Approval Rules
• Has a Flexible Security Model
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• Has a Centrally defined Intercompany Accounts
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Chapter 1 - Page 18
Centralized Banking
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Centralized Banking
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• Bank account is now associated with the LE instead of the Operating Unit
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• A single bank account serves multiple Operating Units
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• Any and all Operating Units associated with a ledger can be permitted to use the bank
account
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• There is a centralized Credit Card Model
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• There is Credit Card Encryption
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• The Supplier & Customer Banks are in TCA
U s
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Chapter 1 - Page 19
Bank Model Example
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Bank Model Example
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Pay invoices from different OUs with 1 instruction
• New Payments Module
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• New Bank Module
• New Bank & Credit Card Features O ly
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Chapter 1 - Page 20
Four Ways to Consolidate Information
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Chapter 1 - Page 21
Multi-Dimensional Analysis & Reporting
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Chapter 1 - Page 22
Financial Consolidation Hub
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Financial Consolidation Hub
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R12 includes interactive spreadsheet reporting with live drill down to transactions
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Chapter 1 - Page 23
Data Management
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Data Management
R12 leverages a centralized data model
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Chapter 1 - Page 24
XML Publisher
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XML Publisher
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Enables you to format, manage, and deliver documents
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• Meets business requirements such as:
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- Removes complexity
- Reduces maintenance cost O ly
- Reduces TCO
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• Integrated with: R9 CRM, ESA, FMS, HCM, and SCM
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Chapter 1 - Page 25
New Standard Reports
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New Standard Reports
Benefits of the new standard reports are:
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• You can create report formats using desktop tools (Adobe Acrobat, MS Word, MS Excel,
and XML Editors)
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• You can publish in any format, to the web and electronically
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• Reporting is consistent, with one source of data
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Chapter 1 - Page 26
Other New Features
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Other New Features
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There are over 300 new Financial features in Oracle E-Business release 12.
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Chapter 1 - Page 27
Other New Features
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Chapter 1 - Page 28
Summary
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Chapter 1 - Page 29
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Chapter 1 - Page 30
Multi-Org Access Control
Overview
Chapter 2
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Multi-Org Access Control Overview

Chapter 2 - Page 1
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Chapter 2 - Page 3
Objectives
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Chapter 2 - Page 4
Agenda
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Chapter 2 - Page 5
Agenda
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Chapter 2 - Page 6
Multi-Org Access Control Description
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Multi-Org Access Control - Description
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In 11i, when users had to enter or process data for multiple operating units, they had to login to
r a
different responsibilities because each responsibility could only access one operating unit. So if
there were a centralized payment processing center where users processed payments for
O ly
multiple organizations, they would have to keep logging in and out of different responsibilities
l & On
to process payments for a different organization or operating unit.
Now in Release 12, Multi-Org Access Control enables companies that have implemented a
a e
Shared Services operating model to efficiently process business transactions by allowing users
n
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to access, process, and report on data for an unlimited number of operating units within a
single application’s responsibility.
U
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This increases the productivity of Shared Service Centers as users no longer have to switch
application responsibilities when processing transactions for multiple operating units. Data
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security and access privileges are still maintained using security profiles that will now support
multiple operating units.
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Chapter 2 - Page 7
Multi-Org Access Control Description
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Multi-Org Access Control - Description
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For example, if you have three operating units in the center you were managing, such as a
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Belgium Operating Unit, a Holland Operating Unit, and a Denmark operating unit, in 11i you
needed to define three different responsibilities. If you had one user who processed payables
O ly
invoices across all three operating units, then you would need to assign the three
l
responsibility to process invoices.& On
responsibilities to that user and then the user would need to log in and out of each
a e
In Release 12, you can create a Security Profile and assign as many operating units as you want
n
r s
to that security profile. So in this example, you could assign all three operating units to the
e
same security profile. Then, you can tie that security profile to a single responsibility using a
t U
profile option called MO: Security Profile. For example, you could assign the security profile
I n
to the EMEA Payables responsibility to allow that responsibility to process invoices across all
c l e
three operating units.
Processing payables invoices is just one example, with Multi-Org Access Control, you can
r a
efficiently perform other processes, such as processing receivables invoices, viewing
consolidated requisitions, performing collections using Advanced Collections, and process
O receiving and drop shipments.

Chapter 2 - Page 8
Multi-Org Access Control Benefits
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Multi-Org Access Control - Benefits
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Multi-Org Access Control provides improved processing efficiency because it takes time to
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switch in and out of different responsibilities. As more and more companies move to shared
service centers, their users will be able to process data and transactions faster for multiple
O ly
operating units. It also provides better information for decision making.
l & On
Much information in the E-Business Suite is striped by operating unit, for example, customer
account sites and supplier sites. MOAC gives you the ability to view all of that information
a e
across different OUs. So if your security profile has access to three operating units, you can
n
r s
view all of the supplier sites across all three operating units. By viewing data from multiple
e
operating units from a single responsibility, you have more information which enables you to
t U
make better decisions. For example, in Oracle Purchasing, you can now view global
I n
consolidated requisition demands for each supplier. With this view, you are armed with the
c l e
information to negotiate purchase discounts.
You’re ultimately going to reduce costs because you can enter data across operating units
a
faster and you will not have the overhead of setting up and maintaining tons of responsibilities.
r
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Chapter 2 - Page 9
Multi-Org Access Control Process Summary
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Multi-Org Access Control Process Summary
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Each Financials product team has implemented MOAC to best suit their business process
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flows. For example, in AP, there’s a new operating unit field on their Invoice Workbench. The
OU list of values reads from the Security Profile assigned to the responsibility to determine
O ly
which OUs should be displayed in the LOV. In general, when a user logs in to a responsibility
l & On
and opens an application, the application will determine which operating units can be accessed
and used for processing. The user can then view or process transactions for multiple operating
units.
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Chapter 2 - Page 10
Multi-Org Access Control Setup
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Multi-Org Access Control Setup
• Responsibility: Human Resources
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• Navigation: Security > Profile
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O ly
In Release 12, when you define your security profile in HR using the Security profile form or
the Global Security profile form, you must:
l & On
• Assign all of the operating units that you want a responsibility to access.
n a e
• Run a concurrent request called “Run Security List Maintenance” from HR which makes
those security profile available and allows you to assign them to a responsibility via a
t e r U s
profile option called MO: Security Profile.
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Chapter 2 - Page 11
Multi-Org Access Control Setup – Create Operating Unit
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• Responsibility: General Ledger
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Multi-Org Access Control – Setup – Create Operating Unit
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Navigation: Accounting Setup Manager > Financials : Accounting Setup :
Accounting Setup Manager
• Responsibility: Human Resources: O ly
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Navigation: Work Structures : Organization > Description
In Release 12, you can define your operating units in two places. You can continue to define
n a e
them in the Oracle HRMS Organization Form or you can define them in the new Accounting
t e r U s
Setup Manager feature in General Ledger. The Accounting Setup Manager streamlines the
setup and implementation of Oracle Financial Applications. It centralizes the setup and
I n
maintenance of common financial components, such as legal entities, operating units, and
ledgers. So when you create an accounting setup, assign a legal entity and create the ledgers
c l e
that will perform the accounting for that legal entity, you can also define and assign the
relevant operating units. By leveraging Accounting Setup Manager to define your OUs, you
r a
can streamline your setup.
In R12, is instead of attaching an OU to a LE, you assign it to a default legal context.
O

Chapter 2 - Page 12
All Release 11i HR Organizations classified as “Operating Units” will be preserved in Release
12. If operating units are assigned to a set of books, then they will be associated to a primary
ledger in an accounting setup. You will be able view all operating units assigned to an
upgraded primary ledger using Accounting Setup Manager.
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Multi-Org Access Control Setup – Define Security Profile
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Multi-Org Access Control – setup Define Security Profile
• Navigation: Security : Profile or

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• Navigation: Security : Global
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Using Oracle HRMS, you can define your security profile using two forms:
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• The Security Profile form, which allows you to select operating units from only one
Business Group
n a e
t e r
• The Global Security Profile form, which allows you to select operating units from
multiple Business Groups
U s
I n
Enter a name, and select the Security Type called “Secure organizations by organization
hierarchy and/or organization list”. This allows you to assign multiple OUs.
l e
When assigning operating units, first select classification Operating Unit, and then select the
c
organization or Operating Unit name.
a
You can assign multiple operating units.
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Chapter 2 - Page 14
Multi-Org Access Control Setup – Run System List Maintenance
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Multi-Org Access Control – Setup – Run System List Maintenance
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• Navigation: Processes and Reports : Submit Processes and Reports
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l & On
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Chapter 2 - Page 15
Multi-Org Access Control Setup – Set Profile Options
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Multi-Org Access Control – Setup – System Profile Options
• The MO Security Profile controls the list of operating units that a responsibility or user
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can access. If you set the security profile at the responsibility level, then all users using
that responsibility will have access to only the operating units available in the security
O ly
profile. If you set the security profile at the user level, then the user will have access to
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only those operating units, irrespective of application responsibility that they log into.
• The MO: Default Operating Unit is optional and allows you to specify a default operating
a e
unit that defaults when you open different subledger application pages. Because you can
n
r s
access multiple operating units, you may want to set up a default one instead of forcing
e
users to constantly have to choose one. User Preferences allows you to specify a default
t U
operating unit at the user level. Use the MO: Default Operating Unit profile option to set
I n
the operating unit context or default operating unit when accessing an applications.
c l e
• The last profile option is for backwards compatibility and to support products that do not
use Multiple Organizations. The release 11i setting was for this is preserved during
r a upgrade. The Release 11i MO: Operating Unit profile option is supported in Release 12
as not all customers of Oracle products require multiple organizations.
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Chapter 2 - Page 16
Implementation Considerations
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You can define operating units using the HRMS organization form or you can define them in
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the new Accounting Setup Manager while you define other common financial components,
such as legal entities, and ledgers. Then, you use HRMS to define your Security Profile and run
the concurrent program.
O ly
l & On
• You can also use Accounting Setup Manager to define operating units while you define
other common financial components, such as legal entities, and ledgers. From Accounting
a e
Setup Manager, you can view all operating units assigned to a primary ledger.
n
units.
t e r U s
• Multi-Org Access Control integrates with all E-Business Suite products that use operating
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Chapter 2 - Page 17
Agenda
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Chapter 2 - Page 18
Multi-Org Preferences Description
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Multi-Org Access Control Preferences - Description
Multi-Org Preferences allows you to control the list of operating units to which you have
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access. For example, a system administrator may create a security profile that has ten operating
units assigned to it and assign it to your responsibility. But, you may only deal with five of the
O ly
operating units on a daily basis and do not want work space cluttered with extraneous operating
l & On
units. You could set up Multi-Org preferences to restrict the list of operating units; you have
complete control over this and can change it at anytime. In addition, you can specify a default
operating unit.
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Chapter 2 - Page 19
Multi-Org Preferences Benefits
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Multi-Org Access Control Preferences - Benefits
Multi-Org Preferences allows you to be more efficient by allowing you to set up your own
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preferences and optimize your setup based on how you work.
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This means faster data entry and cost reduction.
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Chapter 2 - Page 20
Multi-Org Preferences Process Summary
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Multi-Org Access Control Preferences Process Summary
The processing of transactions is the same if you never specify user preferences.
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Chapter 2 - Page 21
Multi-Org Preferences Setup
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Multi-Org Access Control Preferences Setup
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Most products have added the Preferences user interface to their responsibility menus. You can
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select preferred operating units which represent a subset of operating units assigned to your
responsibility’s security profile. You can also set a default operating unit.
O ly
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Chapter 2 - Page 22
Multi-Org Preferences Setup – Add to SubMenu
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Multi-Org Access Control Preferences – Setup – Add to SubMenu
• Navigation: System Administrator > Application > Menu
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• Navigation: Application Developer > Application > Menu
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Most applications have added the Preferences function to their menus. However, if it does not
appear, the system administrator can add it. To enable and display Preferences in your menu,
l & On
request your System Administrator to add the function, FNDMOPREFS to your menu
definition. The System Administrator should use either the System Administrator or
n a e
Application Developer responsibility and select the Menu (Application) option. Select your
t e r U s
product’s menu and add the function named User Preferences (FNDMOPREFS).
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Chapter 2 - Page 23
Multi-Org Preferences Setup – Set Preferences
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Multi-Org Access Control Preferences – Setup – Set Preferences
• Responsibility: Payables, Vision Operations
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• Navigation: Setup > Options > User Operating Unit Preferences
Multi-Org Preferences page:
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• The header displays: the user name that you are logged in as is displayed, the
l & On
responsibility name, and the Security Profile that you are currently assigned to as defined
n a e
by the MO: Security Profile profile option.
• The Default Operating Unit region is where you select a default OU. The List of values
t e r U s
displays all operating units assigned to your security profile.
• The region called Preferred Operating Units is where you select the subset of operating
I n
units you want to work with.
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Chapter 2 - Page 24
Agenda
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Chapter 2 - Page 25
Enhanced Multi-Org Reporting Description
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Enhanced Multi-Org Reporting - Description
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Enhanced Multi-Org reporting is not the same as cross-organization reports that allow you to
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run a report at the ledger level to obtain results for all operating units assigned to that ledger or
obtain results for all the operating units for a GRE/LE.
O ly
Multi-Org Reporting which allows a user to select any operating unit from a list of accessible
application responsibility.
l & On
operating units. This allows user to report on data for multiple operating units from a single
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Chapter 2 - Page 26
Enhanced Multi-Org Reporting Benefits
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Chapter 2 - Page 27
Enhanced Multi-Org Reporting Process
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Enhanced Multi-Org Reporting Process
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Once Multi-Org Access Control has been set up, you can run reports for any operating unit you
have access to.
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Chapter 2 - Page 28
Enhanced Multi-Org Reporting Process – Run Report
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Enhanced Multi-Org Reporting - Process
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Here is an example of an Accounts Payable report called Supplier Audit. When submitting this
r a
report, you can select any operating unit that they have access to.
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Chapter 2 - Page 29
Guided Demonstration 1 Overview: Using MOAC
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Guided Demonstration 1 Overview: Using MOAC
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Chapter 2 - Page 30
Guided Demonstration - Using MOAC
Create Operating Unit Hierarchy (Optional)
Sign on with User: Operations and Password: Welcome
Responsibility = Human Resources, Vision Enterprises
1. (N) Work Structures > Organizations > Global Hierarchy
2. Enter XX Hierarchy.
3. Enter Version 1 and Today’s date as Start Date.
4. Query top Organization – Vision Corporation.
5. Add Vision Operations and Vision Services.
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Create a Global Profile
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O6. (N) Security > Global Profile

Chapter 2 - Page 31
Field Value
Name XX Corporation
Security Type Secure organizations by organization hierarchy and/or
organization list
Organization Hierarchy XX Hierarchy
Specify Top Organization Vision Corporation
Top Organization Include
NOTE: Optionally use the next two steps to enter a list of Operating Units instead of a
Hierarchy or to add additional Operating Units to the list included in the Hierarchy.
• Enter Classification: Operating Unit and Organization Name: Vision Operations.
• Repeat for Vision Services.
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Run the Security Maintenance List program
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14. (N) Processes and Reports > Submit Processes and Reports > Single Request > (B) Go
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Chapter 2 - Page 32
Field Value
Name Security Maintenance List
Parameters Generate list for... All Global Security Profiles
17. (B) Submit > (B) Go.
18. (M) View > Requests > (B) Find >(B) Refresh Data to ensure the report completes
successfully.
Create a customized responsibility

Responsibility = System Administrator
19. (N) Security > Responsibility > Define
Field Value
Responsibility Name KW Payables
Application Payables
Responsibility Key KWPAY
Data Group Name
Data Group Application
Standard
Payables
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Menu AP_NAVIGATE_GUI12
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Request Group Name All Reports
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27. (I) Save.
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Chapter 2 - Page 33
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Assign the security profile
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28. (N) Profile > System
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29. Select Responsibility and enter XX Payables.
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30. Enter MO%Sec% in the Profile field.
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31. (B) Find.
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Chapter 2 - Page 34
32. Enter XX Corporation in the white box under the XX Payables responsibility.
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33. (I) Save.
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Assign the responsibility to your user
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34. (N) Security > User > Define
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Chapter 2 - Page 35
35. (I) Find to find Operations.
36. (I) New to add XX Payables to the list of responsibilities.
37. (I) Save.
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Test the MOAC Setup
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Responsibility: XX Payables
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38. (N) Invoices > Enter > Invoices
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39. (B) LOV in the Operating Unit field to see the list of Operating Units that can be accessed.
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Chapter 2 - Page 36
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Chapter 2 - Page 37
Summary
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Chapter 2 - Page 38
Overview
Chapter 3
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Subledger Accounting Overview

Chapter 3 - Page 1
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Chapter 3 - Page 3
Objectives
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Chapter 3 - Page 4
Agenda
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Chapter 3 - Page 5
Agenda
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Chapter 3 - Page 6
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Subledger accounting is a new product in R12 which significantly enhances the accounting
r a
support across the E-Business Suite products. Subledger Accounting includes new ledger
support and enhances the legal entity and intercompany accounting features.
O ly
Subledger Accounting is a new set of tools, accounting engine, and repository that you can use
to:
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• Support multiple accounting requirements concurrently in a single instance through
configurable rules
n a e
t e r U s
• Increase transparency and have full auditability of the transaction and accounting data,
through a common user interface and data model
I n
• Facilitate accounting reconciliation, especially for inter-transactional accounts
• Improve accounting reporting and analysis
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Chapter 3 - Page 7
Subledger Accounting Description
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Subledger Accounting Description
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Subledger Accounting is mainly a rule-based accounting engine that centralizes accounting for
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Oracle E-Business Suite products in R12 as well as provide an accounting toolset and
repository for third-party applications. It is not a separate product in itself, but is Oracle’s
O ly
engine catering to the accounting needs of both Oracle and external modules.
l & On
Together with the new ledger support, it enables support of multiple accounting requirements
concurrently in a single instance. Different accounting regulations can be satisfied by
a e
maintaining and applying different sets of rules to different sets of transactions; or accounting
n
t e r U s
for the same transaction with multiple methods.
By maintaining a full link between the transaction and accounting data, it allows powerful
I n
reconciliation and auditing capabilities.
Since it provides the setup and inquiry UI and data model for accounting across modules, it
l e
enables consistency in reporting, analysis, and user experience.
c
• Rule-based accounting engine, toolset and repository supporting both Oracle E-Business
r a Suite and external modules
O
• Allows multiple accounting representations for a single business event, resolving conflicts
between corporate and local fiscal accounting requirements

Chapter 3 - Page 8
• Retains the most granular level of detail in the subledger accounting model, with different
summarization options in the General Ledger, allowing full auditability and reconciliation
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Agenda
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Chapter 3 - Page 10
Business Benefits
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Business Benefits
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The flexibility of the accounting rule setup allows meeting different requirements in different
r a
legislative, geographic or industry contexts. Assuming operations in multiple countries, each
with its own legal requirements and accounting standards, you are able to define a setup to
O ly
meet each of the requirements. SLA allows for multiple accounting requirements for a single
transaction or business event.
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Chapter 3 - Page 11
Business Benefits – Global Example
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Business Benefits – Global Example
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This example assumes a US-based corporation with operations in the UK and France.
r a
• The French operation is subject to the French accounting regulations, and thus has to
O ly
report its activities to the local authorities denominated in Euros, according to the French
business calendar, French chart of accounts, and the French interpretation of IFRS
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(International Financial Reporting Standards).
• The UK operation, similarly, is subject to the UK regulations, which for this example’s
n a e
sake are not as restrictive as the French ones. Thus, the UK operation does its local
t e r U s
reporting in the local currency, the British Pound, but according to the US business
calendar, US COA, and US GAAP.
I n
• The US operation reports in the USD per the US business calendar, US COA, and GAAP.
In the R12 ledger setup, all of these operations are defined as three separate ledgers to satisfy
l e
local reporting requirements. However, the headquarters/parent company wants to have a
c
consolidated global visibility of the worldwide operations. It is not very meaningful to
r a
consolidate or compare each of these entities with each other for a few reasons:
O
• The reporting currencies are different

Chapter 3 - Page 12
• The COA and the method of accounting for the French activities may be considerably
different than those in UK and US. For example, in FR, purchases or inventory are
reported as expenses, whereas in the other instances as inventory items. Hence, a mere
currency conversion will not be sufficient.
With R12 ledger architecture and SLA, the following model can be implemented to solve this
business need:
• For the UK operation, converting the activities to the US equivalent requires a currency
conversion since the calendar, COA, and accounting methods are common. This is
accomplished through the addition of a reporting currency to the UK ledger.
• For the French operation, conversion only is not sufficient. A secondary ledger must be
defined for the French ledger, which shares the same currency, COA, calendar, and
accounting method as the HQ.
Through the definition of reporting currency and secondary ledgers, the three operations can
satisfy local regulations, and also allow comparison and consolidation.
In above definition, SLA allows you to:
• Define multiple accounting methods
• Use separate accounting methods on different ledgers
• Create journal entries on multiple ledgers for a single business event (French activities
being accounted for on the primary ledger per IFRS method, and on the secondary ledger
per US GAAP method)
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Chapter 3 - Page 13
Business Benefits
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Business Benefits
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In 11i, accounting information and the tie back to the underlying transaction is maintained
differently for each module.
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Different subledgers/modules have their own model as to how and what they capture in terms
of accounting data. Some allow capturing more details and some link between the journals and
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the underlying transactions. Some do not have the same flexibility or detail. This causes
difficulty and inconsistency in reporting for auditing, reconciliation or whichever purpose
across modules.
n a e
t e r U s
In R12, SLA provides the ability to retain the full link between transaction and accounting data
for all modules, and thus allow auditability. The accounting SLA creates is strongly tied to the
n
underlying transactions.
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Chapter 3 - Page 14
Business Benefits - Auditability
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Chapter 3 - Page 15
Business Benefits – Transaction Example
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Business Benefits – Transaction Example
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• SLA tracks how the journal entry is built from a transaction.
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• On the left side of the screen, there is an invoice for two items, freight and tax.
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• On the right, there are two entries created: one on the US corporate ledger and on the FR
statutory ledger.
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• The expense entry is created for the two item lines of the invoice.
a e
• The following two lines for freight and tax respectively.
n
t e r
• The rules have been setup to summarize all and create a single liability entry. We can also
s
configure the rule so that three or four separate liability lines are created.
U
n
• SLA stores and tracks how each line of the invoice contributed to the journal entry.
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Chapter 3 - Page 16
Business Benefits
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Business Benefits
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Another benefit is the support for business flows in accounting within and across modules. In
r a
flows where accounting for multiple transactions need to be tied together, SLA provides
standard features to recognize multi-transactional flows. This is very important in especially
O ly
reconciling accounts inter-transactional accounts.
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Chapter 3 - Page 17
Business Benefits - Accounting Reconciliation
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Business Benefits - Accounting Reconciliation
Going back to the previous example and looking at a payment that pays off the invoice, the
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SLA data model not only allows keeping the transaction-to-accounting link, but the inherent
features also allow to reflect the transaction flows in the accounting side. So here, a particular
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payment is applied to a particular invoice liability.
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Through the usage SLA Business Flows functionality, at the time of accounting for the
payment, we can to go back to the journal created for invoice and back out from the exact
a e
liability account, at the exact rate that the invoice was converted at, if it was a foreign currency
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one. Because the feature ensures accuracy itself, the need for reconciliation is reduced.
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Chapter 3 - Page 18
Agenda
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Chapter 3 - Page 19
Key Concepts
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Key Concepts
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The event model defined in SLA for each subledger represents the transaction/document types
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and the lifecycle of each transaction:
a
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• Event class classifies transaction types. An invoice, for example, would be an event class.
• Event type defines possible actions on each event class with potential accounting
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significance, for example, validation of an invoice.
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• The journal creation rules are defined per event class/event type.
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Chapter 3 - Page 20
Event Classes
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Event Classes
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The slide shows event classes for Payables, Purchasing and Receivables.
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Chapter 3 - Page 21
Events
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Events
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An accounting event for a payables invoice, for example, is the validation, adjustment or the
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cancellation of the invoice. Similarly, for an AR receipt, accounting events are the creation,
application, or reversal of the receipt. When one of these actions is taken on a receipt
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transaction, an accounting event is created. Based on the rule setup, there may or may not be a
for others.
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resulting journal entry. You can set up rules to generate journal entries for some events, but not
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Chapter 3 - Page 22
Transaction Objects and Sources
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Transaction Objects and Sources
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Transaction object and sources are the data model for each subledger that contains the
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transaction attributes/information made available to be used during journal rule setup and
journal entry generation.
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Chapter 3 - Page 23
Agenda
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Chapter 3 - Page 24
Major Features
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Major Features
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SLA is a toolset, engine, and repository for centralized accounting processing. This means that
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SLA provides the ability to set up journal creation rules and creates journal entries according to
multiple different accounting methods simultaneously. However, there are many options and
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advanced features that facilitate the entire accounting process, including:
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• Converting foreign currency journals into the functional currency
• Calculating exchange rate gain/loss
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• Scheduling the automatic recognition of deferred revenue and expenses across the relevant
accounting periods
t e r U s
• Supporting automatic accrual reversals
I n
• Tracking versions and effective dates on rules
c l e
• Processing a subset of transactions at a time, based on transaction type
• Enabling straight through accounting processing generating journal entries straight from
r a the transaction view to posting to general ledger at the single click of a button
• Allowing testing of rule setup by what-if type of analysis with draft accounting
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Chapter 3 - Page 25
Major Features
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Major Features
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• Easy to use inquiry pages and customizable reports
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• Intelligible errors reporting and tools to troubleshoot
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• Ability to copy rules in and between environments
• Manual adjustment entries in each subledger application
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• Auto-maintenance of rules when accounts are disabled
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• Various geography-specific requirements such as journal entry sequencing, and control
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accounts reporting
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Chapter 3 - Page 26
Accounting Methods Builder
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Accounting Methods builder is the toolset enabling the creation of journal entry rules that
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allows multiple sets of rules to be defined.
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Chapter 3 - Page 27
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In order to make rule setup as flexible as possible, journal entries are split into components:
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Descriptions, Line Types, and Account Derivation rules. The description can be on the entry or
its individual lines. You set up descriptions, as many as you want, by using pieces of data from
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the transaction and constant values. For example, you might have an invoice showing the
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event (invoice validation), the invoice number, type, date, description etc.
The Line Type is another component, actually one of the two main components of the entry.
a e
The line type defines whether this is a debit or a credit, what the accounting class is, where the
n
r s
amount should come from etc. Again, you set up as many as you need of these for a particular
e
entry. You can have a single invoice line or distribution create as many debits or credits as
needed.
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The third major piece is the account derivation rule, which determines to which GL account a
c l e
line should be booked. There is a lot of flexibility around the account derivation rules. You
can simply set up a rule for each flexfield to be used, or you can make it more complex and
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build each flexfield segment by segment by combining multiple rules. These rules can be
setup to derive the accounts or segment values from transactional data, including conditions of
O when to use a particular rule versus another.

Chapter 3 - Page 28
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The transaction objects and the sources carry transaction information into the rules defined for
each component of an entry.
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O ly
These components, for example, journal line type, account derivation rule, journal entry
descriptions, are attached together as a journal line definition for a particular event. For
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example, you set up a JLD for an invoice validation event, another one for a payment creation,
another one for payment clearing. The set of such rules for a particular subledger application is
a e
called the application accounting definition. And the set of AADs for multiple applications is
n
t e r U s
called the subledger accounting method.
Note that it is possible to maintain multiple accounting methods. You can set up as many
I n
components as you like, and use them for different accounting methods. You can set up an
accounting method that creates entries in compliance with US GAAP, and another one with
c l e
IFRS. Because the JE components are modular, these two methods could share components,
such as entry descriptions.
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The accounting methods is assigned to each ledger, which determines which rules are applied
when accounting is being generated for a particular ledger. If you have a setup with a primary
O

Chapter 3 - Page 29
and a secondary ledger, you could have different accounting methods attached to and used for
each.
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Chapter 3 - Page 30
Online Accounting
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Online Accounting
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The payables invoice entry window might show, for example an invoice that has been recorded
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and validated. To generate the journal entries, access the actions button and select Create
Accounting options. You can:
• Create a draft entry generation O ly
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• Create the entry and post to GL straight off this window. This creates entries for the
invoice on all the related ledgers of this operating unit, that is, the primary ledger and any
n a e
associated reporting and secondary ledgers.
t e r U s
The invoice amount is converted to each of the ledger currencies, any exchange rate variance
on any of the ledgers is calculated and posted. Through the usage of business flows feature,
I n
during accounting, you can to track back to the purchase order or receipt, and back out from
the same accrual accounts that were hit originally. By also getting the conversion rate from
l e
that original booking, you can calculate the exchange rate variance accurately.
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Chapter 3 - Page 31
Inquiries
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Inquiries
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• Navigation: Transaction view > Tools: View Accounting > JE inquiry
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Transaction security in inquiries, reports, creating accounting
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Chapter 3 - Page 32
Inquiries
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Chapter 3 - Page 33
Offline Accounting
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Offline Accounting
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Offline accounting is processed on a ledger basis. When submitted for the ledger Vision
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Operations (USA) all related ledgers, that is, reporting currencies and secondary ledgers are
also processed at the same time. When processing transactions for a ledger, you can also
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enforce transaction security model of the subledger to accounting. When a user submits the
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accounting process, you can have either all the transactions of the ledger process, or only the
transactions of the operating units/inventory organizations that the user has access to.
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Chapter 3 - Page 34
Standard Reports
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Standard Reports
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This is a sample report created by the offline accounting program. It shows any errors
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encountered during the process, and suggests the ways to correct the errors.
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The 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
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allow you to change the layout of the reports, change the default sorting and grouping,
customize further by adding company logos and other things.
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Chapter 3 - Page 35
Agenda
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Chapter 3 - Page 36
Setup
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Setup
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A journal entry has three components: the description, line type, and account derivation rule.
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To setup your own rules, you can either define your components from scratch or you can copy
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the components seeded by Oracle, and modify them. Note that rules and components seeded
by Oracle cannot be modified. Similarly, rules that you as a customer define will not be
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overwritten or impacted at all during a future upgrade or patching.
When you want to modify the rules, after defining your own component, you must define all
n a e
the other components hierarchically above that specific component all the way to the subledger
t e r U s
accounting method so that you can supersede Oracle defined rules.
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Chapter 3 - Page 37
Setup - Journal Line Type
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Chapter 3 - Page 38
Setup – Journal Line Type
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The journal line type determines what kind of an entry to generate. It also determines the
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accounting class and sets the conditions under which the rule creates a line. It also specifies the
values needed for line generation and controls behavior for certain feature, such as multiperiod
accounting.
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Chapter 3 - Page 39
Setup - Journal Line Type
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• Navigation: Setup > Accounting Setups > Subledger Accounting Setup > Accounting
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Methods Builder >Journal Entry Setups > Journal Line Types
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1. Journal line type determines whether to create a debit entry, a credit entry, or an entry for
exchange gain/loss.
& On
2. It also identifies the accounting class on the entry, such as Expense or Trade Liability.
l
n a e
3. It defines the conditions under which the rule will be executed to create a line.
4. It determines the values needed for entry line generation, such as amount, currency,
t e r U s
conversion rate information, which are called accounting attributes. That is, it defines
where the values for the entry should come from, which transaction data should be used.
I n
5. It also controls behavior for certain features i.e. multiperiod accounting, business flows,
line merging and summarization
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Chapter 3 - Page 40
Guided Demonstration 1 Overview: Defining Journal Line Types
for Payables
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Guided Demonstration 1 Overview: Defining Journal Line Types
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Chapter 3 - Page 41
Guided Demonstration - Defining Journal Line Types in Payables
Defining Journal Line Types
Responsibility = Payables, Vision Operations (USA)
1. Navigate to the Journal Line Types window.
• (N) Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods
Builder > Journal Entry Setups > Journal Line Types
2. (B) New.
3. In the Event Class field, select Invoices.
4. In the Line Type Code field, enter XX_MISC_EXPENSE.
5. In the Name field, enter XX Miscellaneous Expense.
6. In the Description field, enter XX Miscellaneous Expense.
7.
8.
In the Accounting Class field, select Miscellaneous Expense.
In the Balance Type region, select Actual.

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9. In the Side region, select Debit.
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10. Select Yes from the Switch Debit/Credit dropdown list.
ca
e
11. In the Merge Matching Lines field, select No. A
c l
12. In the Transfer to GL region, select Summary.
13. (B) Conditions. r a

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14. In the Seq field, enter 10.
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15. In the Source field, select Invoice Distribution Type.
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16. In the Operator field, select ‘=’.
n
17. In the Value Type field, select Constant.
I
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18. In the Value field, select Item.
a
19. (M) File – Save
r
O20. (M) File – Close Form

Chapter 3 - Page 42
21. Save the Expense journal line type.
22. Create a Liability journal line type based on the following information:
Field Name Liability Journal Line Type
Event Class Invoices
Line Type Code XX_AP_LIAB_INV
Name XX Liability
Description XX Liability when invoice
validated
Accounting Class Liability
Balance Type Actual
Side Credit
Switch Debit/Credit Yes
Merge Matching Lines No
Transfer to GL Summary
Note: No conditions are required for the Liability journal line type.
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Chapter 3 - Page 43
Practice 1 Overview: Defining Journal Line Types for Payables
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Practice 1 Overview: Defining Journal Line Types for Payables
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Chapter 3 - Page 44
Practice - Defining Journal Line Types for Payables
Overview
In this practice, you will do the following:
• Define two journal line types, as follows:
• Expense
• Liability
Assumptions
• Replace XX with your terminal number or initials.
• You must have access to an Oracle Application Vision database or comparable training
or test instance at your site on which to complete this practice.
• Responsibility selected to complete this practice is Payables, Vision Operations (USA).
Tasks
m y
Log on to the system
d e
• User Name = operations
c a
• Password = welcome
e A
l
• Responsibility = Payables, Vision Operations (USA)
c
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1.
O ly
Navigate to the Journal Line Types window.
•
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(N) Setup > Accounting Setups > Subledger Accounting Setup > Accounting Methods
a e
n
2.
Field Name
t e r U s
Create two journal line types using the following information:
Expense Journal Line Liability Journal Line
I n Type Type
c l e
Event Class
Line Type Code
Invoices
XX_MISC_EXPENSE
Invoices
XX_AP_LIAB_INV
O ra
Name Miscellaneous Expense Liability

Chapter 3 - Page 45
Description Miscellaneous Expense Liability when invoice
validated
Accounting Class Miscellaneous Expense Liability
Balance Type Actual Actual
Side Debit Credit
Switch Debit/Credit Yes Yes
Merge Matching No No
Lines
Transfer to GL Summary Summary
3. Save the journal line types.
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Chapter 3 - Page 46
Solution – Defining Journal Line Types for Payables
1. Navigate to the Journal Line Types window.
The Find Journal Line Types window appears.
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2. (B) New.
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The Journal Line Types window appears.
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Chapter 3 - Page 47
m y
The Application field is automatically populated with the application name associated with
d e
the user’s responsibility, in this example, Payables.
ca
e
Oracle. For components created on site by users, the value is User. A
The Owner field is automatically populated. For components seeded by Oracle, the value is
c l
The Enabled field is automatically enabled, and makes this journal line type available for
use.
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3.
O ly
In the Event Class field, select the event class from the list of values, for example, Invoices.
4.
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In the Line Type Code field, enter a code, for example, XX_MISC_EXPENSE.
n a e
Note: You cannot modify a seeded journal line type or any other seeded component as it
t e r U s
could get overwritten in an upgrade. Instead you can copy the seeded type and then modify
it appropriately. The copied journal line type has an Owner type of User. The list of values
I n
displays the component name and the owner to distinguish between seeded and user-defined
components.
5.
c l e
In the Name field, enter XX Miscellaneous Expense.
r
6. a In the Description field, optionally enter a description, for example, XX Miscellaneous
O Expense.

Chapter 3 - Page 48
7. In the Accounting Class field, select Miscellaneous Expense.
The accounting class is shared across applications and enables you to classify journal entry
lines.
The list of values for this field contains all accounting classes that are seeded but you can
add new accounting classes.
The Rounding Class defaults to the accounting class, in this example, Miscellaneous
Expense.
The rounding class, along with the transaction rounding reference accounting attribute,
groups lines together in order to determine whether rounding is necessary.
8. In the Balance Type region, select Actual.
9. In the Side region, select Debit.
10. Select Yes from the Switch Debit/Credit dropdown list.
This option determines whether negative amounts will result in negative amounts on the
same side or positive amounts on the opposite side.
11. In the Merge Matching Lines field, select No.
m y
This option summarizes subledger journal lines within each subledger entry. Journal entry
lines with matching criteria are merged.
d e
12. In the Transfer to GL region, select Summary to summarize subledger journal entry lines by
ca
account combination.
e A
expense when an invoice is validated.
c l
13. (B) Conditions to add a condition to create a journal line type to account for a miscellaneous
14. In the Seq field, enter 10. r a

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15. In the Source field, select Invoice Distribution Type.
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16. In the Operator field, select ‘=’.
n
t e r U s
n
18. In the Value field, select Item.
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Chapter 3 - Page 49
20. (M) File – Close Form
The Journal Line Types window should now look like this:
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Chapter 3 - Page 50
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21. Save the Expense journal line type.
ca
22. Create a Liability journal line type based on the following information:
Field Name
e
Liability Journal Line Type A
Event Class
c l
Invoices
Line Type Code
r a
XX_AP_LIAB_INV
Name
O ly
XX Liability
Description
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XX Liability when invoice
validated
Accounting Class
n a e Liability
Balance Type
Side
t e r U s Actual
Credit
I n
Switch Debit/Credit Yes
l e
Merge Matching Lines
c
Transfer to GL
No
Summary
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O Note: No conditions are required for the Liability journal line type.

Chapter 3 - Page 51
Setup - Account Derivation Rule
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Chapter 3 - Page 52
Setup – Account Derivation Rule
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Setup – Accounting Derivation Rule
c l
You can set up a separate rule for each flexfield to be used, or you can make it more complex
r a
and build each flexfield segment by segment by combining multiple rules. These rules can be
setup to derive the accounts or segment values from transactional data, including conditions
O ly
under which to use a particular rule versus another.
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Chapter 3 - Page 53
Setup - Account Derivation Rule
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Setup – Account Derivation Rule
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Methods Builder > Journal Entry Setups > Account Derivation Rules
O ly
Multiple output values can be defined in a single rule, each with a condition and evaluation
order of the conditions, so that one value is returned under specific situations versus others. For
if it is not.
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example, use a particular account if invoice distribution type is accrual, versus another account
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Chapter 3 - Page 54
Guided Demonstration 2 Overview: Defining Account Derivation
Rules for Payables
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Guided Demonstration 2 Overview: Defining Account Derivation Rules for
Payables
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Chapter 3 - Page 55
Guided Demonstration - Defining Account Derivation Rules for
Payables
Responsibility: Payables, Vision Operations (USA)
Username/Password = operations/welcome
Creating an Account Derivation Rule for the Liability Journal Line Type
1. Navigate to the Journal Lines Definitions window.
Builder > Methods and Definition > Journal Lines Definitions
2. In the Definition Name field, select XX Payables Accrual.
3. (B) Find
4. Select the XX Liability journal line type.
5. (B) Account Derivation Rule
6. (B) New
m y
7. In the Rule Code field, enter XX_LIAB_ACC.
d e
8. In the Rule Name field, enter XX Liability Account.
ca
9. In the Description field, enter XX Liability Account.
e A
c l
10. In the Accounting Chart of Accounts field, select Operations Accounting Flex.
11. Select the Flexfield radio button.

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12. In the Priority field, enter 1. O ly
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t e r
14. In the Value field, enter 01-520-2210-0000-000.
U s
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17. In the Journal Lines Definitions window, select the XX Liability journal line type.
r a
18. In the Segment field, select All Segments.
O

Chapter 3 - Page 56
19. In the Rule Name field, select XX Liability Account.
20. (M) File - Save
Creating an Account Derivation Rule for the Expense Journal Line Type
21. Select the XX Miscellaneous Expense journal line type.
• Note: You may need to use the Shift and Page Dn keys, followed by the down arrow to
select the next journal line type if pressing the down arrow key doesn’t work.
23. (B) New
24. In the Rule Code field, enter XX_EXPENSE_ACCOUNT.
25. In the Rule Name field, enter XX AP Expense Account.
26. In the Description field, enter XX Expense Account.
27. In the Priority field, enter 1.
28. In the Value Type field, select Source.
m y
29. In the Value field, select Invoice Distribution Account.
d e
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line.
c l
32. In the Journal Lines Definitions window, place the cursor in the XX Miscellaneous Expense
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34. In the Rule Name field, select XX Expense Account.
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Chapter 3 - Page 57
Practice 2 Overview: Defining Account Derivation Rules for
Payables
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Practice 2 Overview: Defining Account Derivation Rules for Payables
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Chapter 3 - Page 58
Practice - Defining Account Derivation Rules for Payables
Overview
• Define two account derivation rules; one for the Liability journal line type and another
for the Expense journal line type.
• Assign the account derivation rules to the relevant journal line types in the Journal
Lines Definitions window.
Assumptions
Tasks
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Create an account derivation rule for the Liability journal line type
1.
O ly
Navigate to the Journal Lines Definitions window.
•
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a e
n
2.
e r s
Search for the XX Accrual Invoices journal line definition.
t U
3.
I n
Select the XX Liability journal line type.
4.
l e
Go to the Account Derivation Rule window.
c
5.
r a Create a new account derivation rule code called XX_LIAB_ACC with a rule name of XX
Liability Account.
O6. Associate this rule with the Operations Accounting Flex chart of accounts.

Chapter 3 - Page 59
7. Enter a flexfield rule for the constant 01-520-2210-0000-000.
8. Save the liability rule.
Assign the Liability account derivation rule to the Liability journal line type
10. In the Account Derivation Rules region, apply the XX Liability Account rule to all
segments.
11. Save your work.
Create an account derivation rule for the Expense journal type
12. Select the XX Miscellaneous Expense journal line type in the Journal Lines Definitions
window.
13. Go to the Account Derivation Rule window.
14. Create a new account derivation rule code called XX_EXPENSE_ACC with a rule name of
XX Expense Account.
15. Associate this rule with the Operations Accounting Flex chart of accounts.
m y
16. Enter a flexfield rule for the Invoice Distribution Account source.
d e
17. Save the expense rule.
ca
Assign the Liability account derivation rule to the Expense journal line type
e A
type.
c l
18. In the Journal Lines Definitions window, select the XX Miscellaneous Expense journal line
r a
19. In the Account Derivation Rules region, apply the XX Expense Account rule to all
segments.
O ly
20. Save your work.
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Chapter 3 - Page 60
Solution – Defining Account Derivation Rules for Payables
Creating an Account Derivation Rule for the Liability Journal Line Type
The Find Journal Lines Definitions window appears.
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c l
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2. O ly
In the Definition Name field, select XX Accrual Invoices.
3. (B) Find
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The Journal Lines Definitions window appears.
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Chapter 3 - Page 61
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4.
l
Select the XX Liability journal line type.
c
•
a
Note: You may need to use the Shift and Page Dn keys, followed by the down arrow to
r
5. (B) Account Derivation Rule O ly

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The Find Account Derivation Rules window appears.
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Chapter 3 - Page 62
6. (B) New
The Account Derivation Rules window appears.
m y
The application name defaults from the application associated with the responsibility, in this
example, Payables.
d e
The Owner field is automatically populated by Subledger Accounting. For components
ca
User.
e A
seeded by Oracle, the value is Oracle. For components created on site by users, the value is
c l
Retain the default for the Enabled check box which is selected to make the account
r a
derivation rule available for use for any application with reference objects used in this
account derivation rule and accounting chart of accounts.
O ly
7.
& On
In the Rule Code field, enter XX_LIAB_ACC.
l
8.
a e
In the Rule Name field, enter XX Liability Account.
n
9.
r s
In the Description field, enter XX Liability Account.
t e U
n
I
c l e
11. Select the Flexfield radio button.
a
r
O Rules are evaluated in ascending order, where the highest priority has the lowest number,
until a condition is met. It is advantageous to list the most commonly met rules and

Chapter 3 - Page 63
conditions first. The order in which rules and conditions are evaluated by updating the
priority number instead of by deleting and rewriting detail lines can be changed. Once the
conditions associated with a detail line are satisfied, the value from that line is used and
other lines are ignored.
13. In the Value Type field, select Constant to specify the method of deriving the account
combination or segment value.
14. In the Value field, enter 01-520-2210-0000-000.
m y
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O ly
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15. Save your work:
n a e
(M) File – Save
t e r U s
I n
16. Close the Account Derivation Rules window:
l e
(M) File – Close Form
c
a
r
O18. In the Segment field, select All Segments.

Chapter 3 - Page 64
19. In the Rule Name field, select XX Liability Account.
m y
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c l
20. Save your work:
r a
(M) File - Save
O ly
& On
Creating an Account Derivation Rule for the Expense Journal Line Type
l
a e
21. In the Journal Lines Definitions window, select the XX Miscellaneous Expense journal line
n
type.
•
t e r U s
n
Note: You may need to use the Shift and Page Dn keys, followed by the down arrow to
I
e
l
c
r aThe Find Account Derivation Rule window appears.
O

Chapter 3 - Page 65
23. (B) New
The Account Derivation Rules window appears.
m y
24. In the Rule Code field, enter XX_EXPENSE_ACCOUNT.
d e
25. In the Rule Name field, enter XX AP Expense Account.
ca
26. In the Description field, enter XX Expense Account.
e A
l
c
a
28. In the Output Type region, select the Flexfield radio button.
r
O ly
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30. In the Value Type field, select Source.
n a e
31. In the Value field, select Invoice Distribution Account.
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Chapter 3 - Page 66
m y
d e
32. Save your work:
ca
(M) File – Save
e A
c l
33. Close the Account Derivation Rules window:
(M) File – Close Form r a

O ly
line.
l & On
34. In the Journal Lines Definitions window, place the cursor in the XX Miscellaneous Expense
n a e
t e r U s
36. In the Rule Name field, select XX AP Expense Account.
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Chapter 3 - Page 67
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37. Save your work:
c l
(M) File – Save
r a
O ly
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Chapter 3 - Page 68
Setup – Journal Entry Description
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Setup – Journal Entry Description
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Methods Builder > Journal Entry Setups > Journal Entry Descriptions
O ly
The final component that makes up a journal entry is the description. A description can be
assigned to the journal entry header itself, to the set of debits and credits; or different
l & On
descriptions can be assigned to each of the lines of the entry. For example, a description on the
liability entry containing information about the supplier, and a description on the item expense
a e
line containing information about the item or expense itself.
n
t e r U s
Similar to the other journal entry components, you can define multiple descriptions and attach
conditions to each. The description can be built by using constants, transaction attributes, or a
n
combination of the two.
I
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Chapter 3 - Page 69
Setup – Journal Line Definition
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c l
The three components of a journal entry are grouped together as a journal line definition to
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create the rule for a particular event type.
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Chapter 3 - Page 70
Setup - Journal Line Definition
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Methods Builder > Methods and Definitions > Journal Lines Definitions
O ly
The journal line type, its description, and its account derivation rules are all attached together
on the Journal line definition to define the rule creating an entry.
l & On
Here, we are looking at a sample definition for AP invoice validation event. We have several
line types defined to create each of the possible entry lines for an invoice validation, such as
n a e
backing out of the accrual, tax, exchange rate variance, freight expense, and liability. To each
t e r U s
of these, we have assigned a description, and one or more account derivation rules. Note that
for the liability line, we have two account derivation rules: one that generates the flexfield for
I n
the liability account, and the other to overwrite the balancing segment on the flexfield derived.
This is an example of how multiple account derivation rules can be used to build complex
c l e
flexfield generation rules.
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Chapter 3 - Page 71
Guided Demonstration 3 Overview: Defining Journal Lines
Definitions for Payables
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Guided Demonstration 3 Overview: Defining Journal Lines Definitions for
Payables
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Chapter 3 - Page 72
Guided Demonstration - Defining Journal Lines Definitions for
Payables
Username/Password = operations/welcome
• Or (B) Journal Lines Definitions from the Application Accounting Definitions window
2. (B) New
3. In the Event Class field, select Invoices.
4. In the Definition Code field, enter XX_ACCRUAL_INVOICES.
5. In the Definition Name field, enter XX AP Accrual Invoices.
6. Optionally, enter a description, for example, XX Payables Accrual.

m y
7. In the Event Type field, select All.
d e
ca
9. A
In the Line Assignments region, enter the following information based on the journal line
e
types you previously defined:
Journal Line Type
c l Line Description
XX Miscellaneous Expense
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Invoice Distribution Description
XX Liability
O ly
Invoice Distribution Description
10. (M) File - Save.

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Chapter 3 - Page 73
Practice 3 Overview: Defining Journal Lines Definitions for
Payables
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Practice 3 Overview: Defining Journal Lines Definitions for Payables
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Chapter 3 - Page 74
Practice - Defining Journal Lines Definitions for Payables
Overview
• Define a journal line definition for accrual invoices.
Assumptions
Tasks
m y
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Define a journal lines definition
e A
1.
l
Navigate to the Journal Lines Definitions window:
c
•
r a
O ly
2.
& On
Create a new journal lines definition.
l
3.
a e
Save the definition code as XX_ACCRUAL_INVOICES.
n
4.
r s
Save the definition name as XX AP Accrual Invoices.
t e U
5.
n
Apply the definition to all event types.
I
6.
l e
Assign the definition to the Operations Accounting Flex accounting chart of accounts.
c
7.
r a Apply the journal line types previously created, XX Miscellaneous Expense and XX
Liability.
O8. Save your work.

Chapter 3 - Page 75
Solution – Defining Journal Lines Definitions for Payables
Defining Journal Lines Definitions
The Find Journal Lines Definitions window appears.
m y
d e
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2. (B) New.
e A
c l
The Journal Lines Definitions window appears.
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Chapter 3 - Page 76
m y
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l
The application name defaults from the application associated with the responsibility.
c
r a
The Owner field is automatically populated. For components seeded by Oracle, the value is
Oracle. For components created on site by users, the value is User.
O ly
The Enabled check box is enabled by default and makes the journal lines definition available
l & On
for use for this application and the selected chart of accounts (if applicable).
3.
n a e
In the Event Class field, select Invoices from the dropdown list.
4.
e r s
In the Event Type field, select All.
t U
5.
I n
In the Definition Code field, enter XX_ACCRUAL_INVOICES.
6.
l e
In the Definition Name field, enter XX AP Accrual Invoices.
c
r
7.
a Optionally, enter a description, for example, XX Accrual Invoices.
O8. In the Accounting Chart of Accounts field, select Operations Accounting Flex.

Chapter 3 - Page 77
9. In the Journal Line Type field, assign the Expense journal line type you previously created
to the event type by selecting XX Miscellaneous Expense.
The Owner field is automatically populated based on the journal line type selected.
10. In the Line Description field, select Invoice Distribution Description.
This is the journal entry description to be used to populate the subledger journal entry lines.
11. Ensure the Active check box is selected to use this line assignment to generate subledger
journal entries.
12. In the Journal Line Type field, assign the Liability journal line type you previously created
to the event type by selecting XX Liability.
13. In the Line Description field, select Invoice Distribution Description.
14. Ensure the Active check box is selected.
The Journal Lines Definitions window should now look like this:
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Chapter 3 - Page 78
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15. Save the journal line definition:
c l
(M) File - Save
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Chapter 3 - Page 79
Setup – Application Accounting Definition
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After you define the rules for each event type of an application that you want to generate
r a
journal entries for, group them together under an application accounting definition. The
application accounting definition or AAD, is the collection of journal entry rules for an
O ly
application per specific accounting requirements or standards. For a corporation with activities
l & On
in multiple geographies, for example, US and Europe, there are separate AADs for, say
Payables, per the accounting standards in these geographies. There is a US GAAP AP AAD
a e
and an IFRS AP AAD. If the standards are the same for a particular event type, for example,
n
IFRS AP AADs.
t e r
for an invoice validation, then the same rule or JLD can be used under both the US GAAP and
U s
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Chapter 3 - Page 80
Setup - Application Accounting Definition
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Methods Builder > Methods and Definitions > Application Accounting Definitions
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After the definition is completed, the AAD is validated which basically ensures that the
mandatory setup to generate an entry is defined appropriately.
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Chapter 3 - Page 81
Setup – Subledger Accounting Method
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The subledger accounting method is the collection of accounting definitions for all the
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applications that you generate accounting for. Each primary and secondary ledger is associated
with a SLAM, which determines the accounting rules and standards that are applied when
generating entries for that ledger.
O ly
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Oracle seeds a number of accounting methods to support standard accrual, cash basis
accounting, as well as accrual and cash basis encumbrance accounting and US Federal
accounting.
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Chapter 3 - Page 82
Setup - Subledger Accounting Method
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Methods Builder > Methods and Definitions > Subledger Accounting Methods
O ly
In the hierarchy of the SLA Accounting methods builder, each component under a SLAM must
share the same COA as the SLAM or be generic to COAs.
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Chapter 3 - Page 83
Ledger Setup and SLAM Assignment
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Chapter 3 - Page 84
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If there is a secondary ledger defined, as the transaction is being processed for accounting,
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there is a separate journal entry generated for the primary and secondary ledgers, both
according to the accounting method on each ledger.
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Chapter 3 - Page 85
Setup – Set Key Profile Options
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Setup – Key Profile Options
c l
There are also a few key profile options that impact how accounting is generated through SLA
r a
in R12. These are mainly options that impact data access and security. For example:
O ly
Should the general ledger data access set security be enforced when generating accounting, that
is, should journal entries be created if the user does not have ledger clearance even if the user
l & On
has multiorg access to the operating unit?.
Should the transaction security model be applied when drilling down from GL; that is, should
n a e
the user be allowed to inquire on journal entries of a certain operating units if the user does not
t e r U s
have MO access, but has ledger clearance?
If there are secondary ledgers and data access set security is enforced in the subledger module,
ledger.
I n
then you must assign an additional data access set to the user to enable access to the secondary
l e
Should the user be able to run certain reports across the data of multiple subledger
c
applications?
r a
In addition to these, there are other new profile options introduced in R12 for subledger
O
accounting processing, that are mainly around troubleshooting. You can refer to the user
documentation for more information.

Chapter 3 - Page 86
Agenda
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Chapter 3 - Page 87
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The slide shows the flow of information from a subledger application to General Ledger
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Chapter 3 - Page 88
Summary
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Chapter 3 - Page 90
Oracle E-Business Tax
Overview
Chapter 4
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Oracle E-Business Tax Overview

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Chapter 4 - Page 3
Objectives
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Chapter 4 - Page 6
What is Oracle E-Business Tax (eBTax)
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What is E-Business Tax (eBTax)
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eBTax is a new product that provides the infrastructure for tax knowledge management and
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delivery using a global system architecture that is configurable and scalable for adding country
specific tax content. As the single point solution for managing transaction-based tax, Oracle E-
O ly
Business Tax uniformly delivers tax services to all E-Business Suite business flows through
one application interface.
l & On
Note to 11i customers: eBTax replaces the transaction tax solutions of Release 11i built into
a e
the Oracle Payables and Oracle Receivables products. It also eliminates the need for Brazilian
n
r s
Payables Tax solution (Brazilian AP/PO Tax). Latin Tax Engine of Release 11i for Order-to-
e
Cash transactions of Brazil, Argentina and Colombia is still supported in Release 12. From an
t U
end users point of view, eBTax and the Latin Tax Engine are two mutually exclusive tax
I n
engines, but the Latin Tax Engine does leverage some services of Oracle E-Business Tax
e
internally. Similar to Oracle E-Business Tax, tax lines calculated by Latin Tax Engine are also
l
stored in eBTax Tables. Tax Reporting of Latin Taxes is now being done using eBTax’s tax
c
reporting ledger interface tables.
r a
Though eBTax is an entirely new product, customers upgrading from Release 11i are not
O required to re-implement their tax setup. You can continue to get the same tax calculation
results as in Release 11i.

Chapter 4 - Page 7
Agenda
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Chapter 4 - Page 8
Business Requirements Met by eBTax
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Business Requirements Met by eBTax
Sales and Use Tax in Procurement
c l
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• Allows the definition of jurisdiction-based taxes, such as US Sales and Use Tax
O ly
• Allows you to leverage US Sales Tax setup configured in Receivable in 11i to be used in
Payables
Self-Assessed Tax in Payables
l & On
a e
• Allows you to self-assess (reverse-charge) taxes on your Payables invoices
n
Multiple Registrations
t e r s
• Allows you to define multiple registrations for a Party or site for different taxes or
U
jurisdictions
Deferred Tax in AP
I n
l e
• eBTax allows you to account for recoverable taxes at the time and to the extent of
c
payment in Payables, similar to behavior in Receivables in 11i
r a
Enhanced Handling of Tax on Freight
O • Enhances handling of tax on Freight, with the ability to define different rules for freight
Enhanced Exemptions and Exceptions

Chapter 4 - Page 9
• Allows you to define exemptions specific to a regime, tax or jurisdiction for a party
• Allows you to define exceptions specific to a regime, tax or jurisdiction by product fiscal
classifications
Multiple Inclusive, Compounding
• Allows you to define multiple inclusive taxes as well as supporting compounding taxes
and surcharges (i.e., tax on tax)
Quantity Based Rates in Procurement
• Allows the use of Quantity based Tax Rates to be unit based, e.g., $0.25 per US Gallon
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Chapter 4 - Page 10
Business Needs Solutions
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Chapter 4 - Page 15
Key Concepts: Tax Authority
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Key Concepts: Tax Authority
c l
Tax Authority is a government entity that regulates tax law, administers, and/or audits one or
r a
more taxes. Some examples of Tax Authority:
O ly
• Brazil - Secretaria da Fazenda Estadual (State Revenue Office)
• Brazil - Secretaria da Receita Federal (Federal Revenue Office)
l & On
• California, USA - California State Board of Equalization
a e
• Canada -Canadian Customs and Revenue Agency
n
t e r
• France - Ministry of Economy, Finance and Industry
s
• Germany - Federal Ministry of Finance
U
I n
• India - Central Board of Customs and Excise
• Singapore -Inland Revenue Authority of Singapore
l e
• United Kingdom - HM Customs and Excise
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Chapter 4 - Page 16
Key Concepts: Tax Regime
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Key Concepts: Tax Regime
c l
Tax Regime is the set of tax rules that determine the treatment of one or more taxes
r a
administered by a tax authority. Some examples of Tax Regime:
O ly
• Brazil - RICMS -> ICMS Regulation
• Brazil - RIPI -> IPI Regulation
l & On
• California, USA - California Sales Tax
a e
• Canada - Canadian Goods and Services Tax
n
• India - Excise Tax
t e r s
• Singapore - Singapore Goods and Services Tax
U
n
• United Kingdom - UK VAT
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Chapter 4 - Page 17
Key Concepts: Tax
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Key Concepts: Tax
c l
We can define Tax by a classification of a charge imposed by a government through a fiscal or
tax authority. Some examples of tax:
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Tax Regime: O ly Taxes:
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------------------------------------------------ ----------------------------------------------------
RICMS - Regulamento do ICMS
n a e ICMS, ICMS-ST (Tributary Substitution)

RIPI - Regulamento do IPI
California Sales Tax
t e r U s
IPI
State Sales Tax
California Sales Tax
I n
Canadian Goods and Services Tax
District Sales tax
GST
c l e
Canadian Sales Tax
India Excise and Customs
PST
Excise Tax
r a
Singapore Goods and Services Tax GST
O UK VAT UK VAT

Chapter 4 - Page 18
Key Concepts: Tax Jurisdiction
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Key Concepts: Tax Jurisdiction
c l
Tax Jurisdiction is a geographic area where a tax is levied by a specific tax authority. Some
examples of Tax Jurisdictions:
r a
Tax
-------------- O ly
Geographic Zone Jurisdiction
----------------------- --------------------------------
ICMS São Paulo
l & On Sao Paulo ICMS
IPI Brazil
n a e Brazil IPI
State Sales Tax
e r
California (State)
s
California State Sales Tax
County Sales tax San Francisco (County) SFO County Sales Tax
t U
GST
PST
I nCanada
Ontario
Canada GST
Ontario PST
Excise Tax
GST
c l e India
Singapore
India Excise Tax
Singapore GST
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UK VAT UK UK VAT
O

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Chapter 4 - Page 20
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Oracle E-Business Tax consists of a tax knowledge base, a variety of tax services that respond
r a
to specific tax events, a set of repositories (for tax content and tax recording) that allow
customers to manage their local tax compliance needs in a proactive manner, as well as the
O ly
ability to integrate with external tax content providers through a single integration point.
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Chapter 4 - Page 22
Processing Taxes for Transactions
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Processing Taxes for Transactions
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At transaction time, transactional applications within the Oracle E-Business Suite such as
r a
Purchasing, Payables, Sales, Receivables etc. pass determining factors to eBTax. Determining
factors can also be derived from information available on the transaction and are the key
O ly
building blocks of the tax rules. They fall into four groups:
For example:
l & On
• Parties: Information about the party such as party classification, registration, exemptions.
- Legal Entities
n a e
t e r U s
- First and Third Party Ship From/To, Bill From/To, etc.
- First and Third Party Tax Registrations, Classifications
I n
• Places: Information on the geography of places associated with the transactions such as:
c l e
- Party Locations
- Define and Validate Party Locations
r a
• Products: Information on the types of goods and services on the transaction such as:
- Product Type (Physical Nature)
O - Item Categories

Chapter 4 - Page 23
- Fiscal Classifications
- Intended Use
• Processes: The types of transactions for which tax services are being requested, for
example:
- Document Type
- Transaction Business Categories
- Transaction Fiscal Classifications
This information is passed to Oracle E-Business Tax through a single and uniform product
interface. Then, eBTax:
• Determines tax regimes and applicable taxes.
• Determines Tax status.
• Identifies the appropriate tax rate belonging to the tax status and/or tax jurisdiction
• Calculates tax amount by multiplying the taxable basis by the tax rate.
• Stores calculated taxes the form of tax lines in the tax repository. These tax lines have all
necessary information needed for tax reporting.
At this point you can extract tax reports from the repository and display the date in formats
such as PDF, HTML and RTF as required.
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Chapter 4 - Page 24
Tax Determination Services Example
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Shown here is a Receivables transaction. This example shows how Oracle E-Business Tax
r a
answers some basic business questions during its Tax Determination process.
O ly
• Tax Regimes are identified based on the countries of the parties involved.
• A default value or a Place of Supply rule indicates the Place of Supply.
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Chapter 4 - Page 25
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A default party type value or a tax registration rule determines from which party (1st party or
r a
3rd party) to evaluate tax registration status.
O ly
The party classification is derived from the parties available in the transaction (1st and 3rd
parties) and that classification can be compared to the ones used as tax determining factor in
any rule type.
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Chapter 4 - Page 26
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In the Transaction Lines window, other types of information are relevant for tax calculation:
r a
• Quantity times Unit Price is the default seeded Taxable Basis formula, but other formulas
can be defined.
O ly
• The item available in a given transaction line can potentially have one or more product
l & On
classifications, and these classifications can be used as a tax determining factor in any rule
type. The item itself or its classifications can also be used as part of Tax Exceptions
definition.
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Chapter 4 - Page 27
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In the Detail Tax Lines window, the Tax Rate times Taxable Basis is the default seeded Tax
r a
Amount formula, but other formulas can be defined.
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Chapter 4 - Page 28
Agenda
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Chapter 4 - Page 29
User Interface
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User Interface
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• Home: Displays shortcuts to all required configuration set up tasks, including external
dependencies.
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O ly
• Tax Configurations: Use this tab to configure Tax Regimes, Taxes, Tax Statuses, Tax
Jurisdictions, Tax Recovery Rates, Tax Rates, Tax Rules
l & On
• Products: Create and/or modify Product Classifications, Intended Use Classifications, and
Tax Exceptions. A product fiscal classification is a classification of products, according to
n a e
their tax requirements, for tax determination and tax reporting purposes. A product fiscal
categories.
t e r U s
classification is based either on Oracle Inventory category sets or E-Business Tax product
I n
• Parties: Create and/or modify Party Tax Profiles, Party Classification, and Legal
Classification Tax Usage
l e
• Transactions: View and update Transaction Business Categories, Transaction Fiscal
c
Classifications, Document Classifications, User Defined Transaction Classifications,
r a Event Class Settings
O
• Defaults and Controls: Create and/or update Country Defaults, Tax Reporting Types,
Configuration Owner Tax Options, and Application Tax Options

Chapter 4 - Page 30
• Provider Services: Create and view Service Mappings and Extensions
• Advanced Setup Options: View and modify Tax Lookup Codes, Tax Determining Factor
Sets, Tax Condition Sets, Tax Formulas, Tax Zone Types, Tax Determining Factors
• Requests: Schedule Requests or Request Sets, or Monitor Requests.
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Chapter 4 - Page 31
Agenda
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Chapter 4 - Page 32
Upgraded and Redesigned Features
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Chapter 4 - Page 33
Upgraded and Enhanced Features
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Chapter 4 - Page 34
Tax Definition Hierarchy
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Tax Definition Hierarchy
• Responsibility: Tax Managers
c l
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• Navigation: Tax Configuration > Tax Regimes
O ly
You can now define an entire tax setup hierarchy, starting from the definition of tax regimes,
then the taxes belonging to those regimes, the tax statuses belonging to each tax and lastly, the
l & On
tax rates associated to each tax status. In addition, tax jurisdictions and jurisdiction rates, can
also be defined for those taxes. The hierarchy gives ease of navigation, visualization and
maintenance.
n a e
t e r U s
• Instead of replicating choices for different Operating Units (OUs), you define which
regimes need to support recovery / Exemptions / Exceptions / Overrides
I n
• Define Tax Regime level defaults that are common across all associated taxes. They can
be overridden at the tax level.
l e
• A Tax is defined by a Configuration Owner. Though multiple OUs can share data by using
c
data defined by a common content owner, the upgrade process creates one content owner
r a for each tax
O • A Tax is defined with a geography type (country / state, etc.) level to understand the
hierarchy across taxes

Chapter 4 - Page 35
• Define granular controls at the tax level, instead of controlling the behavior at highest
level (OUs) or too low levels such as tax rate codes. They can be overridden at lower
levels.
• Instead of repeating taxes, define multiple jurisdictions for the same tax. e.g. US State
Sales Tax can have several state level jurisdictions
• A default Tax Status can de defined for a tax having one or more tax statuses. In the
absence of a Tax Status determination rule, the default Tax Status will be picked up. All
upgraded rate codes are associated with ‘Standard’ Tax Status
• Tax Rate Codes are upgraded with null jurisdiction. Jurisdiction based rates in US will be
upgraded in the context of Tax Status and Jurisdiction
• Define date effective period and/or navigate to details for Account information / lowest
level controls / defaults
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Chapter 4 - Page 36
Tax Configuration Ownership
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Tax Configuration Ownership
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• Tax Regimes created for 11i US (jurisdiction) based taxes, are made available as Common
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Configuration to share data across OUs
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• Tax Regimes created for 11i non US based taxes are made available as Party Specific
Configuration
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Chapter 4 - Page 37
Practice 1 Overview: Creating a Regime to Rate Tax Model
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Practice 1 Overview: Creating a Regime to Rate Tax Model
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Chapter 4 - Page 38
Practice - Create a Regime to Rate Tax Model
Overview
In this practice, you will create a new tax configuration using the regime to rate flow.
Note. These practices are for illustrative purposes and may not represent your true tax model. For
example:
The recommended setup for US sales tax is to create three different taxes within the one regime
to define state, county, and city taxes. You would create multiple jurisdictions for each tax to
cover the states, counties, and cities that you need.
The tax rates may not represent actual tax rates.
Assumptions
• Replace XX with your terminal number.
Tasks
m y
Sign on
d e
Field US Sales and Use Tax
c a
UK VAT
User Name
Password
e
SSCNEWALL
welcome AUK
welcome
Responsibility
c l Tax Managers SSC US 01 Tax Managers Vision
r a UK
Creating a Tax Regime

O ly
1.
l & On
Navigate to the Create Tax Regime page.
2.
n a e
Enter a new tax regime based on the following information:
t e r
Field
Tax Regime Code and Name
U s US Sales and Use Tax
US SALES XX
UK VAT
UK VAT XX
Regime Level
I n Country Country
c l e
Country Name United States United Kingdom
r a Effective From Date MM/DD/YYYY

• MM = Current month
MM/DD/YYYY
• MM = Current
O • DD = Terminal month

Chapter 4 - Page 39
number (if the • DD = Terminal
terminal number is not number (if the
a valid date within the terminal number is
month, the instructor not a valid date
will assign you a day) within the month, the
• YYYY = Current year instructor will assign
you a day)
• YYYY = Current
year
Effective To Date Blank Blank
3. Enter tax regime controls:

Field US Sales and Use Tax UK VAT
Allow Tax Recovery No Yes
Allow Override and Entry of No No
Inclusive Tax Lines
Allow Tax Exemptions Yes Yes
Allow Tax Exceptions Yes Yes
4. Enter tax regime defaults:

m y
Tax Currency
Minimum Accountable Unit
USD
0.01
GBP
0.01
d e
Rounding Rule Nearest
c
Nearest a
Tax Precision
e
2
A
2
5.
c
Enter tax regime configuration options:
l
Field
r a US Sales and Use Tax UK VAT
O ly
Party Name SSC US 01 Vision Industries
Note. Select the First Party Note. Select both the
l & On Legal Entity party type. First Party Legal Entity

and the Operating Unit
n a e owning Tax Content
r
party types.
t e s
Configuration for Taxes and Rules
U
Common Configuration Common Configuration
I n
Effective From Date MM/DD/YYYY
MM/DD/YYYY
• MM = Current
c l e • DD = Terminal
number (if the
month
• DD = Terminal
r a terminal number is not

a valid date within the
number (if the
terminal number is
O month, the instructor not a valid date

Chapter 4 - Page 40
you a day)
• YYYY = Current
year
Creating a Tax
6. Navigate to the Create Taxes page.
7. Create a new tax based on the following information:

Tax Regime Code US SALES XX UK VAT XX
Configuration Owner Global Configuration Global Configuration
Owner Owner
Tax and Tax Name US SALES XX UK VAT XX
Tax Type SALES VAT
Effective From Date MM/DD/YYYY MM/DD/YYYY
• MM = Current month • MM = Current
y
• DD = Terminal month
terminal number is not
number (if the
e
terminal number is m
month, the instructor
will assign you a day)
a d
not a valid date
within the month, the
• YYYY = Current year
A c
instructor will assign
you a day)
c l e • YYYY = Current
year
Effective To Date
r a Blank Blank
Geography Type and Parent
Geography Type
O ly Country Country
Parent Geography Name

l & On United States United Kingdom
8. Enter tax controls:

n a e
t e r
Field
U s US Sales and Use Tax UK VAT
n
Allow Tax Exceptions Yes Yes
e I
Allow Tax Exemptions Yes Yes
c l
Allow Tax Recovery N/A No
r a
Creating a Tax Status
O9. Navigate to the Create Tax Status page.

Chapter 4 - Page 41
10. Create a new tax status based on the following information:
Tax Status Code and Name US SALES XX UK VAT XX
you a day)
• YYYY = Current
year
Set as Default Tax Status Yes Yes
• DD = Terminal
number (if the
month
• DD = Terminal
m y
d e
number (if the
terminal number is
a
not a valid date
A c
you a day)
c l e • YYYY = Current
year
Effective To Date
r a Blank Blank
Creating a Tax Rate O ly

l & On
11. Navigate to the Create Tax Rate page.
n a e
r
12. Create a new tax rate based on the following information:
t e
Field

Tax Rate Code
Rate I n US SALES XX
7%
UK VAT XX
17.5%
c l e
r a • MM = Current month
• DD = Terminal
• MM = Current
month
O number (if the • DD = Terminal

Chapter 4 - Page 42
you a day)
• YYYY = Current
year
13. Enter tax rate details:

Tax Rate Name US SALES XX UK VAT XX
Set as Default Rate Yes Yes
Default Effective From Date MM/DD/YYYY MM/DD/YYYY
not a valid date
m y
you a day)
d e
c
year a
• YYYY = Current
Effective To Date
e
Blank
A
Blank
Creating a Tax Jurisdiction

c l
r a
14. Navigate to the Create Tax Jurisdiction page.
O ly
15. Create a new tax jurisdiction based on the following information:
Field
l & On US Sales and Use Tax UK VAT
n a e
Tax Jurisdiction Code and Name US SALES XX UK VAT XX
Geography Type
t e r
Tax Regime Code and Tax
U s US SALES XX
Country
UK VAT XX
Country
I n
c l e • MM = Current month
• DD = Terminal
• MM = Current
month
r a number (if the

• DD = Terminal
number (if the
O a valid date within the

terminal number is
not a valid date

Chapter 4 - Page 43
you a day)
• YYYY = Current
year
Geography Name United States United Kingdom
Set as Default Tax Jurisdiction Yes Yes
Default Effective From Date MM/DD/YYYY MM/DD/YYYY
you a day)
• YYYY = Current
year
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Chapter 4 - Page 44
Solution - Create a Regime to Rate Tax Model
Tasks
Sign on
User Name SSCNEWALL UK
Password welcome welcome
Responsibility Tax Managers SSC US 01 Tax Managers Vision
UK
Creating a Tax Regime
1. Navigate to the Create Tax Regime: Main Details page:
• (N) Tax Configuration > Tax Regimes
• (B) Create
2. Enter a new tax regime based on the following information:

m y
d e
Name
Regime Level
US SALES XX
Country
UK VAT XX
c
Country a
Country Name
e
United States
A
United Kingdom
Parent Regime Code
c l Blank Blank
Effective From
r a MM/DD/YYYY
MM/DD/YYYY
• MM = Current
O ly • DD = Terminal month
• DD = Terminal
l & On number (if the

n a e a valid date within the

terminal number is
not a valid date
t e r U s will assign you a day)

I n you a day)
• YYYY = Current
c l e
Effective To Blank
year
Blank
O
3.
ra Used to Group Regimes
Navigate to the Controls and Defaults region:

Cleared Cleared

Chapter 4 - Page 45
• (H) Expand > Show Controls and Defaults
4. Enter tax regime controls:

Allow Tax Recovery Cleared Selected
Allow Override and Entry of Cleared Cleared
Inclusive Tax Lines
Allow Tax Exemptions Selected Selected
Allow Tax Exceptions Selected Selected
5. Enter tax regime defaults:

Tax Currency USD GBP
Minimum Accountable Unit 0.01 0.01
Rounding Rule Nearest Nearest
Tax Precision 2 (default) 2 (default)
6. Navigate to Create Tax Regime: Configuration Options page:
• (B) Continue
m y
7. Enter tax regime configuration options:
d e
Party Name
SSC US 01
c a
UK VAT
Vision Industries
e
Note. Select the First Party
A
Note. Select both the
c l Legal Entity party type. First Party Legal Entity

and the Operating Unit
r a owning Tax Content

party types.
O ly
Configuration for Taxes and Rules Common Configuration Common Configuration
Effective From
l & On MM/DD/YYYY
MM/DD/YYYY
• MM = Current
n a e • DD = Terminal month
t e r U s number (if the

• DD = Terminal
number (if the
I n a valid date within the

terminal number is
not a valid date
c l e will assign you a day)

you a day)
r a • YYYY = Current
O year

Chapter 4 - Page 46
8. Complete the tax regime setup:
• (B) Finish
Creating a Tax
9. Navigate to the Create Tax page:
• (N) Tax Configuration > Tax Regimes
• Search for the Tax Regime you created in the above step.
• (B) Go
• (I) Regime to Rate Flow
• (I) Create Tax
10. Create a new tax based on the following information:

m y
Tax Regime Code US SALES XX (default)
e
UK VAT XX (default)
d
Configuration Owner Global Configuration
Owner a
Global Configuration
c
Owner
Tax Source
e
Create a new tax (default)
A
Create a new tax
(default)
Tax
c l US SALES XX UK VAT XX
Tax Name
r a US SALES XX UK VAT XX
Tax Type
O ly SALES VAT
Effective From
l & On MM/DD/YYYY
MM/DD/YYYY
• MM = Current
n a e • DD = Terminal month
t e r U s number (if the

• DD = Terminal
number (if the
terminal number is
I n month, the instructor

not a valid date
c l e • YYYY = Current year instructor will assign

you a day)
r a • YYYY = Current
year
O Effective To Blank Blank

Chapter 4 - Page 47
Geography Type Country Country
Parent Geography Type Country Country
Parent Geography Name United States United Kingdom
Tax Currency USD (default) GBP (default)
Minimum Accountable Unit 0.01 (default) 0.01 (default)
Rounding Rule Nearest (default) Nearest (default)
Tax Precision 2 (default) 2 (default)
Exchange Rate Type Blank Blank
11. Navigate to the Controls and Defaults region:
• (H) Expand > Show Controls and Defaults
12. Enter tax controls:

Allow Override and Entry of Cleared Cleared
Inclusive Tax Lines
Allow Tax Rounding Override Cleared Cleared
Allow Override for Calculated Tax
Lines
Selected Selected
m y
Allow Entry of Manual Tax Lines Selected Selected
d e
Use Legal Registration Number Cleared Cleared
c a
Allow Duplicate Tax Registration
Numbers
e
Cleared
A
Cleared
Allow Multiple Jurisdictions
c l Cleared Cleared
Allow Tax Recovery
r a N/A Cleared
•
O ly
(B) Apply (The system returns you to the Regime to Rate Flow page.)
Creating a Tax Status

l & On
n a e
13. Navigate to the Create Tax Status page (from the Regime to Rate Flow page):
• (H) Expand All

t e r U s
•
I n
(I) Create Tax Status (on Tax Level Type row)
l e
14. Create a new tax status based on the following information:
c
r a Tax Status Code
US SALES XX UK VAT XX
UK VAT
O Name US SALES XX UK VAT XX

Chapter 4 - Page 48
Effective From MM/DD/YYYY MM/DD/YYYY
you a day)
• YYYY = Current
year
Effective To Blank Blank
Set as Default Tax Status Yes Yes
not a valid date
y
m
you a day)
d e
c
year a
• YYYY = Current
Effective To
e
Blank
A
Blank
15. Apply the tax status setup:

c l
•
r a
Creating a Tax Rate O ly

l & On
16. Navigate to the Create Tax Rate page (from the Regime to Rate Flow page):
•
n a e
•
(H) Expand All
t e r U s
(I) Create Tax Rate (on Status Level Type row)
I n
17. Create a new tax rate based on the following information:
c l e Field US Sales and Use Tax UK VAT
r a Tax Jurisdiction Code

Tax Rate Code
Blank
US SALES XX
Blank
UK VAT XX
O Rate Type Percentage Percentage

Chapter 4 - Page 49
Percentage Rate 7 17.5
you a day)
• YYYY = Current
year
18. Navigate to the Rate Details page:
• (I) Rate Details
19. Enter tax rate details:
Tax Rate Name

US SALES XX UK VAT XX
UK VAT
m y
Set as Default Rate Select Select
d e
Default Effective From MM/DD/YYYY
• MM = Current month a
MM/DD/YYYY
c
• MM = Current
e
• DD = Terminal
number (if the A month
• DD = Terminal
c l terminal number is not

number (if the
terminal number is
r a month, the instructor

not a valid date
O ly • YYYY = Current year instructor will assign
& On
you a day)
l
a e
• YYYY = Current
year
Effective To
r n s Blank Blank
n t e
20. Apply the tax status setup:
U
•
e I
(B) Apply (The system returns you to the Create Tax Rate page.)
•
c l
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Chapter 4 - Page 50
Creating a Tax Jurisdiction
21. Navigate to the Create Tax Jurisdiction page:
• (T) Tax Configuration > (ST) Tax Jurisdictions
• (B) Create
22. Create a new tax jurisdiction based on the following information:

Tax Jurisdiction Code US SALES XX UK VAT XX
Tax Jurisdiction Name US SALES XX UK VAT XX
Tax US SALES XX UK VAT XX
Geography Type Country Country
number (if the
terminal number is
m y
e
d
c a
you a day)
• YYYY = Current
e A year
Effective To
c l Blank Blank
Geography Name
Precedence Level r a United States
300 (default)
United Kingdom
300 (default)
Collecting Tax Authority O ly Blank Blank
Reporting Tax Authority
l & On Blank Blank
n a e
Set as Default Tax Jurisdiction Yes Yes
t e r
Default Effective From
U s MM/DD/YYYY
MM/DD/YYYY
• MM = Current
I n • DD = Terminal
number (if the
month
• DD = Terminal
c l e terminal number is not

number (if the
terminal number is

not a valid date
O • YYYY = Current year instructor will assign

Chapter 4 - Page 51
you a day)
• YYYY = Current
year
23. Apply the tax jurisdiction setup:
• (B) Apply
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Chapter 4 - Page 52
Tax Defaulting Hierarchy
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Tax Defaulting Hierarchy
c l
The 11i Tax Code/Group Code (defaulted) on taxable lines drives the applicability of tax rates
r a
for the given taxable line. In R12, the tax classification code (defaulted) on taxable lines drives
the applicability of one or more taxes using Direct Rate Determination rules.
O ly
For each OU, define the defaulting hierarchy for AP, PO, Projects, AR, and Expenses. Choose
• Inventory Items
l & On
a tax classification code for each source, such as customer account, item. Classify:
• Parties, Party Sites

n a e
jurisdictions:
t e r U s
Define Registrations for your Establishments and Third parties specific to Regime, tax, or
I n
• Avoid replication of customer or supplier sites
c l e
• Define Product categories
• Define Transaction business categories
r a
• Use combinations of the above factors and more in rules instead of a single drop through
hierarchy
O

Chapter 4 - Page 53
System Options for Tax
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System Options for Tax
c l
r a
• Navigation: Tax Managers > Defaults and Controls > Configuration Owner Tax
Options
O ly
11i Receivables System Options for Tax such as Rounding Options, Allow Overrides, etc.
& On
upgrade to Configuration Owner Tax Options and Tax Attributes
l
n a e
• Provides more granular control
• Enables the definition of different values for different taxes under the same OU
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Chapter 4 - Page 54
Tax Groups
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Tax Groups
c l
Applicability of tax codes that are grouped under tax group code in 11i is upgraded by creating
r a
direct rate determination rules using condition based on the tax classification code that is same
as tax group code
O ly
• 11i Tax Codes are upgraded as Tax Rates under the appropriate Tax Regime, Tax, and
Tax Status
l & On
• 11i Tax Group Codes are not directly associated with tax rate %. They are used on taxable
n a e
lines to indicate applicability of multiple tax rates for the given taxable line.
t e r U s
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Chapter 4 - Page 55
Tax Jurisdiction Handling
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Tax Jurisdiction Handling
c l
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• Navigation: Tax Configurations > Tax Jurisdiction
O ly
In 11i, geography, tax jurisdiction, and jurisdiction rates information were coupled together as
Location Values and Rates. The Sales Tax Key Flexfield was used for address validation but
& On
also to obtain Sales Tax Location tax rates.
l
n a e
In 12, the upgrade process creates:
• Tax Zone Types based on 11i sales tax location structure and Geography types associated
with the structure
t e r U s
• Data to allow tax zones to include geographies within country and specific geography
types
I n
l e
• Tax Zones based on geography values for the geography type supported by the Zone
Type. The geographies that form the tax zone are then specified, based on the geography
c
r a types defined for the Tax Zone Type
Inner City jurisdictions can be specified, and are usually based on tax zones formed by postal
O code ranges.

Chapter 4 - Page 56
This new model allows for definition of “true” jurisdictions. For example, in the US, there are
more than 60,000 geographies, but only 7,000 jurisdictions. You can:
• Define multiple rates for a jurisdiction, for different statuses and rates
• Define zones for tax
• Define jurisdictions for zones
• Use zones for defining conditions, such as “Ship-to country in EU Zone”, etc.
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Chapter 4 - Page 57
Practice 2 Overview: Creating Tax Zones
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Practice 2 Overview: Creating Tax Zones
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Chapter 4 - Page 58
Practice - Create Tax Zones
Overview
In this practice, you will create a tax zone type and a tax zone for a European Economic
Community (EU) tax zone.
Assumptions
Tasks
Sign on
Field Value
User Name SSCNEWALL
Password
Responsibility
welcome
Tax Managers SSC FR
m y
Creating a Tax Zone Type
d e
1. Navigate to the Tax Zone Types page.
ca
2. Create a tax zone type based on the following information:
e A
Field
c l Value
Tax Zone Type
Country r a EU TAX ZONE XX
Blank
Zone Creation Allowed O ly Yes
Creating a Tax Zone

l & On
n a e
1.
2.
t e r
Navigate to the Tax Zone page.
U s
Create a tax zone based on the following information:
I n Field Value
c l e
Tax Zone and Code
Code Type
EEC XX
Tax Geography Code
r a Start Date MM/DD/YYYY
O • MM = Current month

Chapter 4 - Page 59
• DD = Terminal
number (if the
YYYY = Current year
End Date Blank
Time Zone CET
3. Add the following countries to the tax zone with the same effective dates as the tax zone:
• Austria
• Belgium
• France
• Germany
• United Kingdom
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Chapter 4 - Page 60
Solution – Create Tax Zones
Tasks
Sign on
Field Value
User Name SSCNEWALL
Password welcome
Responsibility Tax Managers SSC FR
Creating a Tax Zone Type
1. Navigate to the Tax Zone Types page.
• (N) Advanced Setup Options > Tax Zone Types
• (B) Create Tax Zone Type
2. Create a tax zone type based on the following information:
Tax Zone Type

Field
EU TAX ZONE XX
Value
m y
Country Blank
d e
Zone Creation Allowed Yes
ca
• (B) Apply (The system returns you to the Tax Zone Types search page.)
e A
Creating a Tax Zone
c l
1. Navigate to the Tax Zone page.
r a
• O ly
EU TAX ZONE XX > (I) View Existing Zones
• (B) Create Tax Zone

l & On
n a e
2.
t e r
Create a tax zone based on the following information:
Field
U s Value
Tax Zone
Code I n EEC XX
EEC XX
c l e
Code Type Tax Geography Code
ra
Start Date MM/DD/YYYY
O • DD = Terminal

Chapter 4 - Page 61
number (if the
YYYY = Current year
End Date Blank
Time Zone CET
3. Select countries to add to the tax zone:

Field Value
Add All
• (B) Go
Field Value
Country Name Austria
• (I) Quick Select

Field Value
Add All
m y
• (B) Go
d e
a
Field Value
Country Name Belgium
A c
Field
c l e Value
Add
r a All
• (B) Go
O ly
Field
l & On Value
Country Name
n a e France
t e
Field
r U s Value
Add
I n All
•
c l e
(B) Go
O ra Country Name
Field
Germany
Value

Chapter 4 - Page 62
Field Value
Add All
• (B) Go
Field Value
Country Name United Kingdom
• (B) Apply
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Chapter 4 - Page 63
Tax Compounding
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Tax Compounding
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In 11i, Tax Compounding is supported for O2C flow transactions by turning ON the flag at AR
r a
System Options. 11i Tax Groups in AR define the exact order of precedence in which taxes
(codes) are calculated and compounded.
In 12: O ly
compounding.
l & On
• From O2C tax codes/groups Regimes are upgraded to indicate cross Regime
n a e
• Compounding precedence is stamped at tax level during upgrade based on the O2C tax
t e r
group level precedence.
U s
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Chapter 4 - Page 64
Tax Inclusiveness
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Tax Inclusiveness
c l
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• Navigation: Tax Configurations > Tax Jurisdiction > Set Invoice Values as Tax
Inclusive checkbox
O ly
The Customer and Customer Site Use level inclusive tax flag is maintained ‘as is’ and it is
l
associated TCA Party / Party site.& On
displayed in the context party tax profile that is equivalent to customer / Customer Site Use
n a e
In 11i for AP transactions, support for Inclusive Tax computation is turned ON at System
t e r U s
Options level. The Tax Inclusive flag is defined at the suppliers / sites level. The Inclusive flag
from supplier / site level gets defaulted to taxable lines and all applicable taxes are considered
I n
inclusive / exclusive.
In 11i for O2C transactions, each tax code carries inclusive flag. Additionally, the customer
l e
account / site uses also indicate whether taxes should be calculated inclusively.
In 12:
c
r a
• The Tax code level inclusive flag is upgraded to corresponding tax rate code and also
O taken to higher levels to Tax Regime, tax, and Tax Status.

Chapter 4 - Page 65
• Taxes are upgraded as Inclusive / Exclusive based on P2P system option level indicator.
• Tax Rate Codes are upgraded as Inclusive / Exclusive based on O2C Tax Code level
indicator.
• Tax inclusive is defined at Regime, Taxes and Tax Rates levels
• Standard Inclusive Handling, Special Inclusive Handling and Standard Non-Inclusive
handling
• Tax Inclusiveness at Party / Party Site levels, in addition to account / site levels. Event
Class options level define order in which parties / registrations need to be checked for
inclusiveness
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Chapter 4 - Page 66
Tax Recovery
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Tax Recovery
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• Responsibility: Payables and Receivables
r a
• Navigation: Payables > Invoices : Entry > Invoices > (B) All Distributions > (B) Tax
Distributions
O ly
• Navigation: Receivables > Transactions > Transactions > (B) Distributions
l & On
Tax recovery is the partial or full reclaim of taxes paid on the purchase or movement of a
product.
n a e
• In 11i, recoverable taxes are calculated using recovery rate % or rules specified at the tax
code level
t e r U s
• In 11i, recovery rate % is either directly associated with tax codes as default rates or
I n
indirectly associated with tax codes using recovery rules
l e
• 11i recovery determination applies one recovery % for each applicable tax. Since eBTax
supports applicability of two recovery rates, the 11i recovery rate % is upgraded as
c
r a recovery rate code for Primary recovery type and Secondary recovery type is kept null.
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Chapter 4 - Page 67
• In 11i, the Enable Recoverable flag and Default Recovery Rate are defined at Financials
System Options. This definition is upgraded as Recovery Controls at the Regimes, Tax,
Status and Rates levels
• Default Recovery Settlement can be defined at Tax, Status and Rates levels
• 11i recovery % is upgraded as % associated with recovery rate codes with ‘Standard’
Recovery Type.
• There are several recovery controls at the tax level. The 11i recovery rate % are upgraded
for Primary Recovery Type. The default recovery % associated at the 11i tax code level is
upgraded as default recovery rate code at tax and rate code levels
In R12, you can:
• Optionally define a Secondary recovery type for a tax and create recovery rates under it
• Leverage Intended Use and other determining factors to define recovery rules, rather than
using accounting based rules
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Chapter 4 - Page 68
Tax Rounding
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Tax Rounding
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• Navigation: Parties > Party Tax Profiles
O ly
In 11i for P2P transactions, Rounding Rule and Rounding Level are defined at Supplier and
Supplier Site levels. In 11i for O2C transactions, Rounding Rule and Rounding Rule Override
& On
are defined at Receivables System Options, Customers and Customer Site Use levels.
l
In R12:
n a e
• Rounding Rule and Rounding Level defined at Party Tax Profile for any 3rd party
e r s
• Rounding Rule and Rounding Rule Override defined at Regime and Tax levels,
t
independent of product
U
I n
• Configuration Owner Tax Options have 4 levels of rounding precedence to indicate the
l e
order in which party (ship from / ship to) level rounding options need to be evaluated.
The Default Rounding Level can also be defined at the Configuration Owner Tax Option
c
r a level.
O

Chapter 4 - Page 69
Tax Overrides
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Tax Overrides
• Responsibility: Tax Manager
c l
r a
• Navigation: Defaults and Controls > Application Tax Options
O ly
Receivables System Options level control for allowing customer exemptions override are
upgraded to Applications Tax Options in the context of AR OU and receivables application.
l & On
• Override controls are specific to a configuration owner and event class.
n a e
• Overrides can be controlled at tax level, such as override for inclusive tax lines, tax
rounding and for calculated tax lines
e r s
• Allow Tax Rate Override setup defined in Tax Codes is upgraded to Tax Status
t U
I n
- Allow Tax Rate Override is defined at the Status level
• Allow Tax Rounding Override defined in Receivables System Options, Customer and
l e
Customer Sites are upgraded to Party Tax Profile for first and third parties
c
- Allow Tax Rounding override can be defined at the Party Tax Profile level for any
r a party
• Inclusive Tax Override flag at tax code level in 11i is upgraded to tax rate code, Tax
O Status, tax, and Tax Regime levels

Chapter 4 - Page 70
• Override setup specific to a Configuration Owner and Application is defined at
Configuration Owner Tax Options
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Chapter 4 - Page 71
Offset Taxes
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Offset Taxes
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• Navigation: Defaults and Controls > Configuration Owner Tax Options
O ly
Offset tax is a negative-rate tax used to fully or partially reduce another tax.
• ‘Tax’ level indicator is upgraded from 11i, based on the associated offset tax rate codes
l & On
• The Configuration Option indicates which event classes allow offset taxes. The Party Tax
a e
Profile for the party indicated in offset tax base, carries the indicator from supplier/sites
n
t e
regular tax is defined r
• Taxes marked as “Set as Offset Tax” can be defined under the same Tax Regime where
U s
I n
• A Tax can be defined normally under the same Regime where the offset tax is created.
Either one can be defined first
l e
• Any unassociated offset taxes are upgraded from 11i
c
• Applicable taxes for a Regime (whether regular or offset taxes) are identified
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Chapter 4 - Page 72
Party Tax Attributes
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Party Tax Attributes
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eBTax provides one single entity Party Tax Profile to hold party tax attributes. In R12, First
Parties information such as LE and Establishment is also upgraded to TCA. Customer Account,
Sites.
l & On
Account Site, Site Uses, Suppliers, and Supplier Sites are associated with TCA Party / Party
n a e
Tax attributes for third parties are either carried to party tax profile in the context of third party
party site.
t e r U s
/ third party site LE or displayed from the Party Tax Profile in the context of third party / third
I n
All Party Tax attributes are upgraded as tax attributes belonging to Party Tax Profile or they
are classifications / reporting codes of Party Tax Profile
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Chapter 4 - Page 73
Practice 3 Overview: Creating a First Party Tax Profile
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Practice 3 Overview: Creating a First Party Tax Profile
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Chapter 4 - Page 74
Practice - Create a First Party Tax Profile
Overview
In this practice, you will create a legal entity and a first party tax profile.
Note. You can also set up this tax information as part of the Legal Entity maintenance flow.
Assumptions
Tasks
Sign on
m y
Creating a Legal Entity
d e
Responsibility
Legal Entity Manager
c a
UK VAT
Legal Entity Manager
1. Navigate to the Create Legal Entity page.

e A
c l
a
2. Create a legal entity based on the following information:
Territory
Field
r
O ly
US Sales and Use Tax
United States
UK VAT
United Kingdom
l & On
Legal Entity and Organization Name EBTAX US XX EBTAX UK XX
Legal Entity Identifier
n a e USXX UKXX
t e r
EIN/TIN/Company Number
Legal Address Location
U s
1234567XX
Main XX
GBGB1234567XX
Main XX
I
Legal Address
n 500 Oracle Parkway
Redwood Shores, CA
Oracle Parkway
Thames Valley Park,
c l e 94065 Reading
RG61RA
r a
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Chapter 4 - Page 75
Creating a First Party Tax Profile
Responsibility Tax Managers SSC US 01 Tax Managers Vision UK
3. Navigate to the Party Tax Profiles page.
4. Update the first party tax profile for your legal entity based on the following main
information:
Set for Self Assessment/Reverse Yes No
Charge
Rounding Level Header Header
Rounding Rule Nearest Nearest
Set Invoice Values as Tax Inclusive No No
5. Enter tax configuration options based on the following information:

Effective From Date
Common Configuration
MM/DD/YYYY
MM/DD/YYYY
m y
• DD = Terminal
d e
• DD = Terminal
number (if the
c a
number (if the
e
A a valid date within the
l
month, the instructor month, the instructor
a c will assign you a day)

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Chapter 4 - Page 76
Solution – Create a First Party Tax Profile
Tasks
Sign on
Creating a Legal Entity

Responsibility Legal Entity Manager Legal Entity Manager
1. Navigate to the Create Legal Entity page.
• (N) Legal Entity Manager > Legal Entity Configurator
• (B) Create Legal Entity
2. Create a legal entity based on the following information:

m y
Territory United States
d
United Kingdom e
Legal Entity EBTAX US XX EBTAX UK XX
c a
Organization Name
Legal Entity Identifier
e
EBTAX US XX
USXX A
EBTAX UK XX
UKXX
EIN/TIN/Company Number
c l 1234567XX GBGB1234567XX
r a Note. Country Number

applies to UK.
O ly
3. Create a new legal address:
Field
Create New Address
n a e Selected Selected
Location
Address 1
t e r U s Main XX
500 Oracle Parkway
Main XX
Oracle Parkway
City
I n Redwood Shores Thames Valley Park
c l e
State/County CA Reading
r a Postal Code 94065 RG6 1RA
O • (B) Apply (The system automatically creates a legal entity establishment when you
create a legal entity.)

Chapter 4 - Page 77
• (H) Home
Creating a First Party Tax Profile

Responsibility Tax Managers SSC US 01 Tax Managers Vision UK
4. Navigate to the Party Tax Profiles page.
• (N) Parties > Party Tax Profiles
• Search for the First Party Legal Entity you created in the above step
Party Type First Party Legal Entity First Party Legal Entity
Party Name EBTAX US XX EBTAX UK XX
• (B) Go
• (I) Update Tax Profile
5. Update the first party tax profile for your legal entity based on the following main
information:
m y
Set for Self Assessment/Reverse
Charge
Yes No
d e
Rounding Level Header
c
Header a
Rounding Rule
e
Nearest
A
Nearest
Set Invoice Values as Tax Inclusive
c l No No
• (T) Configuration Options

r a
• (B) Add Another Row
O ly
6.
l & On
Enter tax configuration options based on the following information:
Field
n a e US Sales and Use Tax UK VAT

Tax Regime Code
t e r U s
US SALES XX
UK VAT XX
I
Effective From
n MM/DD/YYYY MM/DD/YYYY
c l e • MM = Current month
• DD = Terminal
• DD = Terminal
r a number (if the

number (if the
O a valid date within the


Chapter 4 - Page 78
will assign you a day) will assign you a day)
• YYYY = Current year • YYYY = Current year
• (B) Apply
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Chapter 4 - Page 79
Multiple Tax Registrations
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Tax Registrations
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Tax registrations:
O ly
• Are usually issued for a company or establishment, by a legal/tax authority, for an specific
l & On
tax and within a certain tax jurisdiction
n a e
• Can be defined for 1st and 3rd parties. It is very important information since it can be used
in tax rules and tax reporting
e r s
• Can be defined at Regime, tax or tax jurisdictions levels.
t U
I n
• Tax registration numbers are usually validated to ensure accuracy and/or comply with
legal requirements.
l e
• Single Tax Reporting Registration Number and Type can be defined at Party Tax Profile
c
for Vendors and Vendor Sites for backward compatibility
r a
• Single Tax Registration:
- Is defined at Customer and Customer Site Uses levels for backward compatibility
O - Is defined at Party tax profile for Legal Establishments for backward compatibility

Chapter 4 - Page 80
• You can define:
- Multiple registrations for the same party and different regimes, taxes, or jurisdictions
- As complete tax registration information as needed for each registration
- A user-definable registration status value
• Use the registration status value in tax rules such as Place of Supply rules, Tax Status
rules, etc.
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Chapter 4 - Page 81
Tax Exemptions
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Tax Exemptions
• Responsibility: Receivables
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• Navigation: Transactions > Transactions > (T) Tax Exemption > (B) Lines
O ly
11i Exemptions definitions are upgraded to the newly defined Exemptions entity in Oracle E-
Business Tax.
l & On
• Exemptions always apply to a Party and a Tax Regime. They can optionally apply to a
n a e
Tax, Tax Jurisdiction, Tax Status and Tax Rate
• A tax Exemption usually has a certificate number, exemption reason, and status. It is
t e r
upgraded as Item Exceptions
U s
created in the context of Party/Site. 11i Item exemptions without the context of Party are
I n
• Exemptions are usually a discount or surcharge on the tax rate, but a special rate is also
possible. Upgraded Exemptions are created with discount on tax rate
l e
• The Allow Exemptions flag is defined at Configuration Owner Tax Options
c
r a
• The Allow Tax Exemptions is defined at Regime and Tax levels
• Party Exemptions are defined in the Exemptions page flow for the Party Tax Profile
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Chapter 4 - Page 82
• Item Exceptions can be defined under Exceptions page flow, outside the realm of tax
exemptions
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Chapter 4 - Page 83
Tax Exceptions
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Tax Exceptions
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• Navigation: Defaults and Controls > Configuration Owner Tax Options
O ly
A tax exception is a special rate that applies to an item. A Tax exemption certificate is a
document obtained from a tax authority which certifies that a party, party site, or product is
l & On
either partially or fully exempt from a tax. Exceptions are defined for a Tax Regime and tax,
for an specific product item or to a product classification. It can optionally apply to a Tax
n a e
Jurisdiction, Tax Status, and Tax Rate.
t e r U s
• The Item Tax Rate Exception flag is obsolete in R12.
• The Allow Exemptions flag is defined at Configuration Owner Tax Options
I n
• Item Exceptions are defined in the Exceptions page flow, under Products tab
l e
• Item Exceptions apply to the Tax Regime and tax, for an specific product item or to a
product classification. It can also apply to a tax jurisdiction, status and tax rate
c
r a
• Item Exceptions can be defined under Exceptions page flow, outside the realm of tax
exemptions
O • Exceptions can apply to items or item classification

Chapter 4 - Page 84
Tax Formulas
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Tax Formulas
c l
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• Navigation: Advanced Setup Options > Tax Formulas > (B) Create
O ly
The Taxable basis formula created during the upgrade indicates the usage of quantity as a
taxable basis instead of taking the line amount as the taxable basis.
l & On
A tax formula is a special calculation not covered by the standard calculations available in the
n
• To Calculate Taxable Basis a e
system. Examples of tax formulas are:
e r s
• To Calculate Complex Compounding Rules
t U
I n
• To Calculate Tax Amounts
You can define several formula types, including taxable basis, calculate tax amounts, tax
l e
compounding formula, etc.
In R12:
c
r a
• PL/SQL formulas defined in previous releases are not upgraded to the new model
O • The PL/SQL formulas defined in 11i are obsolete

• Formulas can be defined for Regime and Tax

Chapter 4 - Page 85
• Certain rule types such as Taxable Basis and Tax Amount are based on tax formulas
• During Upgrade Tax formulas are created for applying discounts or to indicate
compounding taxes.
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Chapter 4 - Page 86
Global Descriptive Flexfields
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Global Descriptive Flexfields
c l
• Tax related GDFs associated with first parties are upgraded as reporting codes with reporting type
r a
as GDF segment name and they are created in the context of upgrade LE / Establishment
equivalent Party Tax Profile.
O ly
• Because the Latin Tax Engine still exists as a globalization solution, most of the LTE
l & On
related GDFs are maintained ‘as is’.
• Transaction (Header / Lines / Distributions) level GDFs (including LTE related) are
a e
upgraded as named column in the context of the transaction (line / header / Distributions).
n
t e r U s
• Tax Line Level GDFs (including LTE related) are upgraded as named columns
• EMEA VAT reporting related GDFs that are meant to control preliminary / final reporting
n
modes will be detailed in EMEA solution.
I
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Chapter 4 - Page 87
Transaction Tax Upgrade
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Transaction Tax Upgrade
c l
For AP transactions, eBTax holds detail tax lines, summary tax lines and detail tax
r a
distributions in the context of AP transactions. For PO transactions, eBTax holds tax lines and
tax distributions.
In R12: O ly
& On
• There is one single repository with detail/fully allocated tax lines
l
transactions
n a e
• There is a Common Single repository for tax distributions in for procure to pay
t e r U s
• There are document level summary tax lines for Payables transactions
• Tax line IDs/Tax Distribution IDs are stamped on AR/AP tax lines for reconciliation with
I n
product transactions
l e
• Tax line IDs/Tax Distribution IDs from product transactions are carried to SLA for
Accounting reconciliation
c
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• Calculated taxes are propagated to documents created in downstream flow
• Effective variance calculations are performed for AP transactions
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Chapter 4 - Page 88
• Consistent validations and controls for overrides are enforced on tax lines and
distributions
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Chapter 4 - Page 89
Practice 4 Overview: Creating Transactions with Applicable Tax
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Practice 4 Overview: Creating Transactions with Applicable Tax
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Chapter 4 - Page 90
Practice - Create Transactions with Applicable Tax
Overview
In this practice, you will enter Payables and Receivables transactions and view the applicable tax
calculations.
Assumptions
Tasks
Sign on
Password
Entering an Invoice in Payables

welcome welcome
m y
d e
UK VAT
Responsibility Payables SSC US OU 01
a
Payables Vision UK
c
1. Navigate to the Invoices page.
e A
2.
c l
Enter a standard invoice based on the following header information:
Trading Partner
Field
r a US Sales and Use Tax

Advantage Corp
UK VAT
Advantage Corp
Supplier Site O ly US CHECK LONDON
Invoice Date
l & On MM/DD/YYYY MM/DD/YYYY
n a e • MM = Current month • MM = Current
r • DD = Terminal month
t e U s number (if the

• DD = Terminal
number (if the
I n a valid date within the

terminal number is
not a valid date
c l e will assign you a day)

ra
you a day)
Note. This date should
• YYYY = Current
O be equal to the effective

date of your tax.
year

Chapter 4 - Page 91
Note. This date should be
equal to the effective
date of your tax.
Invoice Number TAX TEST XX TAX TEST XX
Amount 1155.00 USD 1100.00 GBP
3. Enter invoice line information based on the following:

Type Item Item
Distribution Account 101.100.63580.0000.730.000.000 03-000-7459-000-000
Description Test XX Test XX
GL Date MM/DD/YYYY MM/DD/YYYY
• DD = Terminal number (if month
the terminal number is not a • DD = Terminal
valid date within the month, number (if the
the instructor will assign you terminal number is
y
a day) not a valid date
• YYYY = Current year within the month,
Note. This date should be equal
e m
the instructor will
assign you a day)
d
to the effective date of your tax.
• YYYY = Current
c
year
a
e Abe equal to the effective

date of your tax.
Business Category
c l Purchase Transaction Purchase Transaction
Product Type
r a Goods Goods
Ship To
O ly SSC US OU 01 - 002 E London
4.
l
Save and validate your invoice.
& On
5.
n a e
View the tax line distributions.
t e r U s
Note. You can override the tax calculation and enter manual tax lines on invoices if you
I n
selected the Allow Override for Calculated Tax Lines and Allow Manual Entry of Tax Lines
options at the Tax level.
c l e
Entering an Invoice in Receivables
r a Responsibility
Receivables SSC US OU 01
UK VAT
Receivables Vision
O UK

Chapter 4 - Page 92
6. Navigate to the Transactions page.
7. Enter an invoice based on the following header information:

Source Manual-Other Manual-Other
Date MM/DD/YYYY MM/DD/YYYY
you a day)
equal to the effective date • YYYY = Current
of your tax. year
date of your tax.
GL Date MM/DD/YYYY
MM/DD/YYYY
• MM = Current
m y
e
number (if the
a d
• DD = Terminal
number (if the
A c terminal number is
not a valid date
c l e • YYYY = Current year

you a day)
r a equal to the effective date

of your tax.
• YYYY = Current
year
O ly Note. This date should be
l & On equal to the effective

date of your tax.
Class
n a e Invoice Invoice
Currency
Type
t e r U s USD
Invoice
GBP
WF_Invoice
Legal Entity
I n SSC OU 01 Vision Industries
c l e
Ship to Business World Business World
r
8.
a Enter invoice line information based on the following:
O

Chapter 4 - Page 93
UOM Ea Ea
Quantity 1 1
Unit Price 1000.00 USD 1000.00 GBP
9. View the tax line distributions.
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Chapter 4 - Page 94
Solution – Create Transactions with Applicable Tax
Tasks
Sign on
Entering an Invoice in Payables

Responsibility Payables SSC US OU 01 Payables Vision UK
1. Navigate to the Invoices page.
• (N) Invoices: Entry > Invoices
2. Enter a standard invoice based on the following header information:
Trading Partner
Advantage Corp
UK VAT
Advantage Corp
m y
Supplier Site US CHECK LONDON
d e
Invoice Date MM/DD/YYYY
MM/DD/YYYY
c a
• MM = Current
e
• DD = Terminal
number (if the A month
• DD = Terminal
c l terminal number is not

number (if the
terminal number is

not a valid date
O ly YYYY = Current year instructor will assign
& On
you a day)
l
a e
equal to the effective date
of your tax.
YYYY = Current year
r n s
e
date of your tax.
Invoice Number
Currency
I n t U TAX TEST XX
USD
TAX TEST XX
GBP
c l e
Amount 1155.00 1100.00
r
3.
a Accept all other defaults.
O4. Navigate to the Lines region.

Chapter 4 - Page 95
• (ST) Lines

Line 1 1
Type Item (default) Item (default)
Distribution Account 101.100.63580.0000.730.000.000 03-000-7459-000-000
• DD = Terminal number (if month
the terminal number is not a • DD = Terminal
valid date within the month, number (if the
the instructor will assign you terminal number is
a day) not a valid date
YYYY = Current year within the month,
the instructor will
Note. This date should be equal
assign you a day)
YYYY = Current year
m
Note. This date shouldy
d e
be equal to the effective
date of your tax.
Business Category Purchase Transaction
a
Purchase Transaction
c
Product Type
Ship To
Goods
e
SSC US OU 01 - 002 A
Goods
E London
c l
6. Save your invoice.
• r a
(I) Save
O ly
7. Validate your invoice.
l & On
• (B) Actions… 1
n a e
•
t e r
Select Validate check box.
U s
• (B) OK
I n
8.
l e
Navigate to the Distributions window.
c
ra
• (B) All Distributions
O
9. View the tax line distributions.

Chapter 4 - Page 96
Note. Because you are working in an environment with seeded data and shared data, you
may see other tax applied to your transaction.
Entering an Invoice in Receivables

Responsibility Receivables SSC US OU 01 Receivables Vision
UK
10. Navigate to the Transactions page.
• (N) Transactions > Transactions
11. Enter an invoice based on the following header information:

Source Manual-Other (default) Manual-Other
Date MM/DD/YYYY MM/DD/YYYY
• DD = Terminal
• MM = Current
month
m y
number (if the
d e
• DD = Terminal
number (if the
c a
terminal number is
not a valid date
e
• YYYY = Current year A within the month, the
c l Note. This date should be

equal to the effective date
you a day)
• YYYY = Current
r a of your tax. year

O ly equal to the effective
GL Date
l & On MM/DD/YYYY
date of your tax.
MM/DD/YYYY
n a e • MM = Current month • MM = Current
t e r U s • DD = Terminal
number (if the
month
• DD = Terminal
I n terminal number is not

number (if the
terminal number is
c l e month, the instructor

not a valid date
r a Note. This date should be

you a day)
• YYYY = Current
O equal to the effective date
year

Chapter 4 - Page 97
of your tax. Note. This date should be
date of your tax.
Class Invoice (default) Invoice (default)
Currency USD (default) GBP (default)
Type Invoice (default) WF_Invoice (default)
Legal Entity SSC OU 01 (default) Vision Industries
(default)
12. Navigate to the Main region.
• (ST) Main
13. Enter ship to information:

Ship To Business World Business World
14. Navigate to Main region of the Line Items page.
• (B) Line Items
• (ST) Main
m y
d e
c aUK VAT
Num
Description
1
e
Test XX A1
Test XX
UOM
c lEa Ea
Quantity
r a 1 1
Unit Price
O ly 1000.00 USD 1000.00 GBP
16. Save your invoice.

l & On
• (I) Save
n a e
t e r U s
17. Navigate to the Detail Tax Lines window.
• (B) Tax
I n
l e
c
r aoptions at the Tax level.
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Chapter 4 - Page 98
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Chapter 4 - Page 99
New Features
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Chapter 4 - Page 100
Content and Services Subscription
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Content and Services Subscription
c l
r a
• Navigation: Provider Services > Service Mappings
O ly
• Navigation: Provider Services > Service Extensions
Content Subscription
l & On
• Under Tax Regimes you can define the content subscription per tax regime, legal entity
and operating unit.
n a e
Services Subscription
t e r s
• Tax services subscription can be configured under Services Mappings and Services
U
Extensions flows
I n
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Events and Configuration Owner Options
m y
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Events and Configuration Owner Options
c l
r a
• Navigation: Tax Configuration > Tax Regimes
O ly
You can now define whether a Legal Entity or an Operating Unit will become a “content
owner” for a given Tax Content hierarchy and be responsible for defining and maintaining tax
l & On
content separately. When it makes sense to share and maintain tax content centrally to
streamline maintenance, tax content can be owned by a “Global Content Owner” and therefore
n a e
be shared among specified legal entities and operating units.
t e r
Configuration Owner Options:
U s
• Hold tax configuration information for the configuration owner, application and tax event
I n
class. Upgraded data comes from:
- Financial System Options for Tax such as Rounding Rule, Precision, Minimum
c l e
Accountable Unit, Default Tax Code, Default Recovery Rate, etc.
r a - AP System Options for Tax such as Enforce Tax from Account, Enforce Tax from
Reference Document, etc.
O - AR System Options for Tax such as Rounding Options, Allow Overrides, etc.

• Can be defined for a Legal Entity or Operating Unit in the Tax Regimes flow
• For Product Exceptions can be defined as Common or Party Specific
• For Taxes and Rules can be defined as Common, Common w/ Party Overrides and Party
Specific
Based on the Configuration Options for the Regime, the user must select the Configuration
Owner, which can be ‘Global’ in case the configuration option is ‘Common’ or a party name,
when the option is ‘Party Specific’
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Tax Jurisdictions
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d e
ca
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Tax Jurisdictions
c l
r a
• Navigation: Tax Configuration > Tax Jurisdictions
O ly
Geography information is now defined in TCA’s Geography Hierarchy model. Tax
Jurisdictions are defined for taxes and geography information defined in TCA. Party locations
l & On
are also based and validated against the same Geography information. Geography information,
including geo-political geographies and user-defined geographies, is defined in TCA’s
Geography model.
n a e
t e r U s
Tax Jurisdictions are created for a geography type. Rates having different effective periods can
be defined in the same flow, and multiple jurisdictions can be define for a tax, as well as a
default one.
I n
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Tax Rules
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Tax Rules
c l
r a
• Navigation: Tax Configuration > Tax Rules
O ly
Both guided and expert configuration flows are available
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Practice 5 Overview: Setting Up Tax Rule Defaults
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Practice 5 Overview: Setting Up Tax Rule Defaults
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Practice - Set Up Tax Rule Defaults
Overview
In this practice, you will create defaults for each tax rule type.
Assumptions
Tasks
Sign on
UK
m y
Creating Default Rules
d e
1. Navigate to the Tax Rules page.
c a
2. A
Access the rule types for your tax regime and tax created in the Practice: Create a Regime to
e
Rate Tax Model.
c l
3.
Field r a
Enter tax rule defaults based on the following information:
US Sales and Use Tax UK VAT
Determine Place of Supply O ly Ship To Ship From
l
Determine Tax Applicability
& On Applicable Applicable
n a e
Determine Tax Registration Bill From Party Bill From Party
Determine Tax Status
t e r U s US SALES XX (the tax

status you created in
UK VAT XX (the tax
I n
Determine Tax Rate
Practice 1)
US SALES XX (the tax
Practice 1)
UK VAT XX (the tax
c l e status you created in

Practice 1)
Practice 1)
O ra Determine Taxable Basis

Calculate Tax Amounts
STANDARD_TB
STANDARD_TC
STANDARD_TB
STANDARD_TC

Solution – Set Up Tax Rule Defaults
Tasks
Sign on
UK
Creating Default Rules
1. Navigate to the Tax Rules page:
• (N) Tax Configuration > Tax Rules
2. Access the rule types for your tax regime and tax created in the Practice: Create a Regime to
Rate Tax Model.
Field
Configuration Owner
US Sales and Use Tax
Global Configuration Owner
UK VAT
m y
Global Configuration
Owner
d e
Tax Regime Code
Tax
US SALES XX
US SALES XX
c a
UK VAT XX
UK VAT XX
• (B) Go
e A
c l
3. Enter tax rule defaults.
• r a
Field O ly
Determine Place of Supply > (I) Set Default
Rule Type Default
l & On Ship To Ship From
•
n a e
•
(B) Apply
t e r U s
Determine Tax Applicability > (I) Set Default
I n Field US Sales and Use Tax UK VAT
c l e
Rule Type Default Applicable Applicable
r a • (B) Apply
O • Determine Tax Registration > (I) Set Default

Rule Type Default Bill From Party Bill From Party
• (B) Apply
• Determine Tax Status > (I) Set Default

Rule Type Default US SALES XX (default) UK VAT XX (default)
Note. This already appears Note. This already
as the default because you appears as the default
selected the Set as Default because you selected
Tax Status option in the tax the Set as Default Tax
status setup. Status option in the tax
status setup.
• (B) Apply
• Determine Tax Rate > (I) Set Default

Rule Type Default US SALES XX (default) UK VAT XX (default)
Note. This already appears
as the default because you
Note. This already
m y
appears as the default
selected the Set as Default
Rate option in the tax rate
d e
because you selected
the Set as Default Rate
setup.
a
option in the tax rate
c
setup.
• (B) Apply
e A
•
c l
Determine Taxable Basis > (I) Set Default
Field
r a US Sales and Use Tax UK VAT
Rule Type Default
O ly STANDARD_TB STANDARD_TB
• (B) Apply
l & On
•
n a e
Calculate Tax Amounts > (I) Set Default
t e r
Field
I n
Rule Type Default STANDARD_TC STANDARD_TC
•
l e
(B) Apply
c
r a
O

Fiscal Classifications: Product
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d e
ca
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Fiscal Classifications: Product
c
• Responsibility: E-Business Tax Manager l
r a
• Navigation: Tax Managers > Product > Product Classification > (B) Create
O ly
Several types of Product Fiscal Classifications can be defined for different purposes. Oracle E-
Business Tax can link Fiscal Classification Types with existing inventory categorization or the
classifications.
l & On
user can create non-inventory classification types and codes. User can also define intended use
n a e
• Variety of Fiscal Classifications being modeled
t e r U s
- Product (classification of goods or services for tax purposes)
• Integrated with other classifications within Oracle E-Business Suite
I n
- Inventory Category Set to model Product Fiscal Classification and Intended Use
c l e
Defaults
• Fiscal Classification as a Tax Determining Factor
r a - An input that affects the outcome of a process. Tax determining factors are grouped
into tax determining factor sets and they are used to define tax condition sets and tax
O rules.

Fiscal Classifications: Party
m y
d e
ca
e A
Fiscal Classifications: Party
c
• Responsibility: E-Business Tax Manager l
r a
• Navigation: Tax Managers > Parties > Party Classification > (B) Create
O ly
Several types of Party Fiscal Classifications can be defined for different purposes. Oracle E-
Business Tax can link Fiscal Classification Types with existing party categories in TCA and
& On
associate those with specific tax regimes.
l
n a e
• A party fiscal classification is linked to TCA’s party classification
• The codes belonging to the party classification are displayed in a tabular format
e r s
• Variety of Fiscal Classifications being modeled:
t U
I n
- Party (classification of parties for tax purposes). For example, SIC (Standard Industry
Classification), NAICS (North American Industry Classification System), etc.
l e
• Integrated with other classifications within Oracle E-Business Suite:
c
- TCA Party Classification to model Party Fiscal Classification
r a
• Fiscal Classification as a Tax Determining Factor
O

- An input that affects the outcome of a process. Tax determining factors are grouped
into tax determining factor sets and they are used to define tax condition sets and tax
rules.
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Fiscal Classifications: Transaction
m y
d e
ca
e A
Fiscal Classifications: Transaction
c
• Responsibility: E-Business Tax Managerl
r a
• (N) Tax Managers > Transactions > Transaction Fiscal Classification > (B) Create
O ly
Several types of Transaction Fiscal Classifications can be defined for different purposes.
Classifications such as Transaction Business Category can hold generic classifications whereas
& On
Document Type or User-Defined classifications can be very specific to a tax regime.
l
tax regime
n a e
• Transaction Fiscal Classifications can have one or more levels and must be associated to a
t e r U s
• The classification codes are defined and displayed in a tabular format
Variety of Fiscal Classifications being modeled:
I n
Classifications entered on Transaction
l
Intended Use
c e
User Defined
r a
Transaction Business Category
O Derived from Transaction Business Category

Fiscal Classification as a Tax Determining Factor

An input that affects the outcome of a process. Tax determining factors are grouped into tax
determining factor sets and they are used to define tax condition sets and tax rules.
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Tax Repository
m y
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Tax Repository
c l
• The tax repository is a single source of transactional tax information (tax lines) for all
r a
taxes calculated by E-Business Tax. It holds information about the calculated taxes, the
parties involved, etc. The repository is used to support processes such as tax reporting, tax
O ly
accounting and tax reconciliation. The repository is also the underlying infrastructure for
l & On
users to see and/or modify (override) the tax lines.
• An invoice line can have one or more tax lines associated to it, where detailed information
a e
related to calculated taxes is captured
n
t e r U s
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Practice 6 Overview: Creating Tax Accounts
m y
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Practice 6 Overview: Creating Tax Accounts
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Practice - Create Tax Accounts
Overview
In this practice, you will create tax accounts at the tax level.
Assumptions
Tasks
Sign on
UK
m y
Creating Tax Accounts
d e
1. Navigate to the Tax Accounts page from the Taxes page.
c a
2. A
Access the tax accounts for your tax regime and tax created in the Practice: Create a Regime
e
to Rate Tax Model.
c l
3.
Field r a
Enter tax accounts based on the following information:
Ledger O ly SSC US Vision UK
Operating Unit
l & On SSC US 01 Vision Industries
Tax Expense
n a e 101.100.63920.0000.730.000.000 Blank
t e r
Tax Recoverable/Liability
U s 101.100.25300.0000.730.000.000 03-000-2520-000-000
I n
c l e
r a
O

Solution – Create Tax Accounts
Tasks
Sign on
UK
Creating Tax Accounts
1. Navigate to the Tax Accounts page from the Taxes page:
• (N) Tax Configuration > Taxes
2. Search for the Tax you created in the Practice: Create a Regime to Rate Tax Model.
m y
Tax Regime Code
Tax
US SALES XX
US SALES XX
UK VAT XX
d
UK VAT XX e
• (B) Go
c a
• (I) Update Tax
e A
c l
3. Navigate to the Tax Accounts page:
• r a
(B) Tax Accounts
O ly
4. Enter the ledger:
Field
Ledger
n a e SSC US Vision UK
• (B) Create
t e r U s
5. I n
Enter tax accounts based on the following information:
c l e Field US Sales and Use Tax UK VAT
r a Operating Unit
Tax Expense
SSC US 01
101.100.63920.0000.730.000.000 Blank
Vision Industries
O Tax Recoverable/Liability 101.100.25300.0000.730.000.000 03-000-2520-000-000

• (B) Apply
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Tax Simulator
m y
d e
ca
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Tax Simulator
• Responsibility: Oracle Tax Simulator
c l
r a
• Navigation: Oracle Tax Simulator > Tax Simulator
O ly
Tax Simulator is a very powerful tool where users can simulate different types of transactions
and immediately see the tax calculation results. This gives more flexibility and confidence to
test new or changed tax rules.
l & On
n a e
• It gives flexibility to test new and/or changed tax rules
• Simulator has the relevant fields available in a transaction but with much less validations
e r s
• Once the transaction lines are entered and taxes get calculated, they can be seen in the tax
t U
lines summary page for each transaction line
I n
• More detailed information can be seen for each tax line in the Detail Tax Line window
l e
• All the rule types and rules that were invoked to generate each tax line can also be seen in
c
the Rules window
r a
• For each process, the corresponding conditions can also be seen
Note: Tax Simulator emulates transactions, but does not trigger any real transactions
O

Practice 7 Overview: Reviewing Tax Configuration Results Using
the Tax Simulator
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Practice 7 Overview: Reviewing Tax Configuration Results Using the Tax
Simulator
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Practice - Review Tax Configuration Results Using the Tax
Simulator
Overview
In this practice, you will review your tax configuration results applied to a Payables invoice
transaction using the Oracle Tax Simulator.
Assumptions
Tasks
Sign on
User Name
Password
SSCNEWALL
welcome
UK
welcome
m y
Responsibility Oracle Tax Simulator
e
Oracle Tax Simulator
d
Entering a Payables Invoice Using the Tax Simulator
c a
1. Navigate to the Oracle Tax Simulator window.
e A
2.
l
Enter Payables main information based on the following:
c
Application
Field
r a US Sales and Use Tax

Payables
UK VAT
Payables
Document Event O ly Standard Invoices Standard Invoices
Legal Entity
l & On SSC US 01 Vision Industries
Document Type
n a e Standard Created Standard Created

Operating Unit
Document Date
t e r U s SSC US 01
MM/DD/YYYY
Vision Industries
MM/DD/YYYY
I n • MM = Current month
• DD = Terminal
• MM = Current
month
c l e number (if the

• DD = Terminal
number (if the
r a a valid date within the

terminal number is
not a valid date
O will assign you a day) within the month, the

Note. This date should be you a day)
equal to the effective date • YYYY = Current
of your tax. year
date of your tax.
Document Number TAX TEST XX TAX TEST XX
Document Currency USD GBP
3. Enter party information based on the following:

Ship From Party Advantage Corp Advantage Corp
Bill From Party Advantage Corp Advantage Corp
Ship To Party SSC US 01 - 002 SSC US OU 01 Vision Industries HR-
- 002 London, UK
Bill To Party SSC US 01 - 002 SSC US OU 01 Vision Industries HR-
- 002 London, UK
4. Enter sites information based on the following:

m y
Ship From Party Site US CHECK Advantage Corp
d e
LONDON Advantage
a
Corp
A c
Note. Select the second
occurrence in the LOV.
Bill From Party Site
c l e US CHECK Advantage Corp LONDON Advantage

Corp
a
Ship From Location r

O ly 8475 Elk Grove Road New York
, NY
23 Chamomile Street ,
& On
Note. You need to do a
l
a e
search on
%Chamomile% to
r n s
select the location. First
search on % to obtain
n t e U
all values, and then
search on
e I %Chamomile%. You
may not get any results
c l if you first search on

%Chamomile%. Select
r a the first occurrence in

the LOV.
O Bill From Location PO Box 680978 New York , NY 23 Chamomile Street ,

search on
%Chamomile% to
search on
%Chamomile%. Select
the first occurrence in
the LOV.
Ship To Location SSC US OU 01 – 002 31 Birmingham Hurst
Madison Avenue New York New Street Birmingham
York, NY WTM,
Bill To Location SSC US OU 01 – 002 31 Birmingham Hurst
York, NY WTM,
5. Enter line information based on the following:

Line Description Test XX Test XX
Product Type Goods Goods
Quantity 1 1
m y
UOM
Unit Price
Each
200.00
Each
200.00
d e
Transaction Business Category Purchase Transaction
c a
GL Date
e
MM/DD/YYYY
• MM = Current month A
MM/DD/YYYY
• MM = Current
c l • DD = Terminal number (if month
r a the terminal number is not a

valid date within the month,
• DD = Terminal
number (if the
O ly the instructor will assign you

a day)
terminal number is
not a valid date
l & On • YYYY = Current year within the month,

the instructor will
n a e Note. This date should be equal

assign you a day)
t e r U s • YYYY = Current
year
I n Note. This date should

be equal to the effective
c l e
Tax Inclusive None
date of your tax.
None
r
6. a View the tax line details.
O

7. View the tax rules.
m y
d e
ca
e A
c l
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O ly
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t e r U s
I n
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Solution – Review Tax Configuration Results Using the Tax
Simulator
Tasks
Sign on
Responsibility Oracle Tax Simulator Oracle Tax Simulator
Entering a Payables Invoice Using the Tax Simulator
1. Navigate to the Oracle Tax Simulator window.
• (N) Oracle Tax Simulator > Tax Simulator
• (T) Main
2. Enter Payables main information based on the following:

m y
Application Payables Payables
d e
Document Event Standard Invoices
a
Standard Invoices
c
A
Legal Entity SSC US 01 Vision Industries
e
Document Type Standard Created Standard Created
Operating Unit
c l SSC US 01 Vision Industries
Document Date
r a MM/DD/YYYY
MM/DD/YYYY
• MM = Current
O ly • DD = Terminal month
l & On number (if the

• DD = Terminal
number (if the
n a e a valid date within the terminal number is
r
t e U s will assign you a day)

I n Note. This date should be

you a day)
• YYYY = Current
c l e equal to the effective date

of your tax. year
r a equal to the effective

date of your tax.
O Document Number TAX TEST XX TAX TEST XX

Document Currency USD GBP
• (T) Party
3. Enter party information based on the following:

Ship From Party Advantage Corp Advantage Corp
Bill From Party Advantage Corp Advantage Corp
Ship To Party SSC US 01 - 002 SSC US OU 01 Vision Industries HR-
- 002 London, UK
Bill To Party SSC US 01 - 002 SSC US OU 01 Vision Industries HR-
- 002 London, UK
• (T) Sites
4. Enter sites information based on the following:

Ship From Party Site US CHECK Advantage Corp LONDON Advantage
Corp
m
occurrence in the LOV. y
Bill From Party Site US CHECK Advantage Corp
e
LONDON Advantage
Corp
d
c a
Ship From Location
e
8475 Elk Grove Road New York A23 Chamomile Street ,
c l , NY Note. You need to do a

search on
r a %Chamomile% to
O ly search on % to obtain
& On
l
search on
a e
%Chamomile%. You
n
may not get any results
t e r U s if you first search on

%Chamomile%. Select
I n the LOV.
c l e
Bill From Location PO Box 680978 New York , NY 23 Chamomile Street ,
r a search on
%Chamomile% to
O select the location. First


search on
%Chamomile%. Select
the LOV.
Ship To Location SSC US OU 01 – 002 31 Birmingham Hurst
York, NY WTM,
Bill To Location SSC US OU 01 – 002 31 Birmingham Hurst
York, NY WTM,
• (T) Main (Lines region of the Tax Simulator window)
5. Enter line information based on the following:

Line Description Test XX Test XX
Product Type Goods Goods
Quantity 1 1
y
UOM Each Each
m
Unit Price 200.00 200.00
Transaction Business Category Purchase Transaction
e
d
a
• DD = Terminal number (if
the terminal number is not a
c
• MM = Current
A month
• DD = Terminal
c l e valid date within the month,

the instructor will assign you
number (if the
terminal number is
r a a day)
not a valid date
within the month,
O ly Note. This date should be equal

the instructor will
assign you a day)
l & On to the effective date of your tax.

• YYYY = Current
n a e year
t e r U s be equal to the effective

date of your tax.
Tax Inclusive
I n None None
6.
l e
View the tax line details.
c
O
7.
ra
• (B) Tax Lines
View the tax rules.

• Select the line with your tax regime code.
• (B) Tax Rules
m y
d e
ca
e A
c l
r a
O ly
l & On
n a e
t e r U s
I n
c l e
r a
O

Guided Configuration
m y
d e
ca
e A
Guided Configuration
c l
• Rules belonging to multiple pre-defined rule types can be defined for a given tax
r a
• Rules can be defined via guided (step by step) or expert (faster) flows
O ly
• Most rule types allow definition of default values, which get selected in case there are no
rules defined for the rule type
l & On
• The rules defined for all rule types can be seen in a hierarchical fashion, turning
n a e
maintenance easier and faster
• There are 5 general guided steps to define a tax rule:
e r s
1. General Information: A rule is usually generic, but it can be defined as being specific
t U
to a transaction or geography as well.
I n
2. Rule Conditions: User selects the various determining factors and values that will
c l e
form the rule conditions
3. Rule Results: User then selects the rule result for the rule type in question and all
r a previously selected rule conditions

4. Rule Order: User then defines the order in which this rule will be evaluated for the
O rule type in question

5. Rule Templates
m y
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e A
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O ly
l & On
n a e
t e r U s
I n
c l e
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O

Profile Options for Tax
m y
d e
ca
e A
Profile Options for Tax
• Responsibility: System Administrator
c l
r a
• Navigation: System Administrator > Profile > System
O ly
11i Features carried into 12 include:
• Allow Ad Hoc Changes
• Allow Manual Tax Lines
l & On
a e
• Allow Override of Customer Exemptions
n
t e r U s
• Allow Tax Classification Code Override
• Allow Tax Recovery Rate Override
I n
• Inventory Item for Freight
• Invoice Freight as Revenue
c l e
r a
O

Upgrade Considerations
m y
d e
ca
e A
Upgrade Cosiderations
c l
• 11i Tax Code/Name are used to name the R12 Tax, after removing any numeric portion
(i.e. VAT10 => VAT)
r a
O ly
• Tax Status for upgraded records are derived as “Standard”
• 11i Tax Code is used to name the R12 Tax Rate
l & On
n a e
t e r U s
I n
c l e
r a
O

Implementation Information
m y
d e
ca
e A
c l
r a
O ly
l & On
n a e
t e r U s
I n
c l e
r a
O

Summary
m y
d e
ca
e A
c l
r a
O ly
l & On
n a e
t e r U s
I n
c l e
r a
O

m y
d e
ca
e A
c l
r a
O ly
l & On
n a e
t e r U s
I n
c l e
r a
O


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R12 Oracle Financials

Restricted Rights Notice

U.S. GOVERNMENT RIGHTS

Richard Sears, Dee Fairbanks Simpson

Oracle Financials Overview............................................................................................................................1-1

O Guided Demonstration 1 Overview: Using MOAC......................................................................................2-30

Copyright © Oracle, 2007. All rights reserved.

R12 Oracle Financials Functional Migration Fundamentals Table of Contents

r aSolution – Defining Journal Lines Definitions for Payables .....................................................................3-76

Copyright © Oracle, 2007. All rights reserved.

R12 Oracle Financials Functional Migration Fundamentals Table of Contents

Copyright © Oracle, 2007. All rights reserved.

R12 Oracle Financials Functional Migration Fundamentals Table of Contents

Copyright © Oracle, 2007. All rights reserved.

R12 Oracle Financials Functional Migration Fundamentals Table of Contents

O Streamlined Consolidation Mappings Setup and Process.............................................................................5-123

Copyright © Oracle, 2007. All rights reserved.

R12 Oracle Financials Functional Migration Fundamentals Table of Contents

Accounting and Reporting Sequencing Description......................................................................................5-166

Copyright © Oracle, 2007. All rights reserved.

R12 Oracle Financials Functional Migration Fundamentals Table of Contents

Flexible Reporting Using XML Publisher Setup...........................................................................................6-62

r aSolution - Create a Purchase Order in the Buyer's Work Center ...............................................................7-19

Copyright © Oracle, 2007. All rights reserved.

R12 Oracle Financials Functional Migration Fundamentals Table of Contents

Document Publishing Enhancements Description.........................................................................................7-58

O Support for Contractor Purchasing Users Benefits ........................................................................................7-89

Copyright © Oracle, 2007. All rights reserved.

R12 Oracle Financials Functional Migration Fundamentals Table of Contents

Mass Re-pricing of Purchasing Documents Description ...............................................................................7-125

r aSolution - Set Yourself Up As a Buyer......................................................................................................8-15

Copyright © Oracle, 2007. All rights reserved.

R12 Oracle Financials Functional Migration Fundamentals Table of Contents

r aSolution - Enter Quick Invoices.................................................................................................................8-109

O Configurable Payment Attribute Validation Benefits....................................................................................8-113

Copyright © Oracle, 2007. All rights reserved.

R12 Oracle Financials Functional Migration Fundamentals Table of Contents

Copyright © Oracle, 2007. All rights reserved.

R12 Oracle Financials Functional Migration Fundamentals Table of Contents

Copyright © Oracle, 2007. All rights reserved.

R12 Oracle Financials Functional Migration Fundamentals Table of Contents

O Credit Card Chargeback Setup ......................................................................................................................9-108

Copyright © Oracle, 2007. All rights reserved.

R12 Oracle Financials Functional Migration Fundamentals Table of Contents

O Subledger Accounting Overview...................................................................................................................9-178

Copyright © Oracle, 2007. All rights reserved.

R12 Oracle Financials Functional Migration Fundamentals Table of Contents

Copyright © Oracle, 2007. All rights reserved.

R12 Oracle Financials Functional Migration Fundamentals Table of Contents

Practice 13 Overview: Setting Up Revenue Contingencies..........................................................................9-295

Copyright © Oracle, 2007. All rights reserved.

R12 Oracle Financials Functional Migration Fundamentals Table of Contents

r aSolution - Create Notional Cash Pool........................................................................................................10-77

O Solution - Create Physical Cash Pool ........................................................................................................10-79

Copyright © Oracle, 2007. All rights reserved.

R12 Oracle Financials Functional Migration Fundamentals Table of Contents

R12 Oracle Financials Functional Migration Fundamentals Table of Contents

• Functional knowledge of Oracle General Ledger

• Functional knowledge of Oracle Payables

• Functional knowledge of Oracle Purchasing

• Functional knowledge of Oracle Receivables

• Functional knowledge of Oracle Cash Management

• There are no prerequisites for this course.