Ebs 122 RVP Fin

Oracle E-Business Suite
RELEASE VALUE PROPOSITION
Release 12.2
Financials
Prepared by E-Business Suite Product Management and Strategy
Last Updated: November 27, 2013

Version: 1.0
Copyright © 2013 Oracle Corporation

All Rights Reserved
Table of Contents
1. Disclaimer _______________________________________________________________________________ 1
2. Introduction ______________________________________________________________________________ 2
2.1. Purpose of Document__________________________________________________________________ 2
3. Financials Release 12.2 Value Proposition _____________________________________________________ 3
3.1. Support global and shared service operations _____________________________________________ 3
3.2. Improve operational efficiencies ________________________________________________________ 4
3.3. Reduce risk __________________________________________________________________________ 4
4. Architectural Features and Closely Related Enhancements ________________________________________ 6
4.1. Gain process efficiencies _______________________________________________________________ 6
4.1.1. Role-Based Access ___________________________________________________________________________ 6
4.1.2. Increased Efficiency for Processing and Reporting Across Ledgers _____________________________________ 6
4.1.3. Streamlined Accounting Setup __________________________________________________________________ 7
4.1.4. Automated and Accurate Intercompany Balances ___________________________________________________ 7
4.1.5. Efficient Payment Handling ____________________________________________________________________ 7
4.1.6. Improved Bank Account Maintenance ____________________________________________________________ 8
4.2. Enforce controls and reduce risks _______________________________________________________ 8
4.2.1. Compliance with Legal and Reporting Requirements ________________________________________________ 8
4.2.2. Greater Control, Transparency and Auditability with Centralized Accounting _____________________________ 9
4.2.3. Simplified Tax Compliance ____________________________________________________________________ 9
4.3. Provide visibility and drive performance ________________________________________________ 10
4.3.1. Comprehensive Business Intelligence ___________________________________________________________ 10
4.3.2. Simplified Self-Service Reporting ______________________________________________________________ 10
5. What’s New in Oracle Advanced Collections? __________________________________________________ 11
5.1. Improve managerial decisions _________________________________________________________ 11
5.1.1. Improved Ability to Collect with Enhanced Dispute Management _____________________________________ 11
5.2. Comply with bankruptcy regulations ___________________________________________________ 11
5.2.1. Global Bankruptcy Visibility at the Party Level ___________________________________________________ 11
6. What’s New in Oracle Assets? ______________________________________________________________ 12
6.1. Increase transparency and efficiency with centralized setup ________________________________ 12
6.1.1. Flexible Accounting Configuration with Oracle Subledger Accounting _________________________________ 12
6.2. Improve processing efficiencies ________________________________________________________ 12
6.2.1. Enhanced Mass Additions Interface for Legacy Conversions _________________________________________ 12
6.2.2. Enhanced Productivity with Automated Depreciation Rollback for Selected Assets ________________________ 13
6.2.3. Impairments/Unplanned Depreciation Visibility with Flexible Accounting ______________________________ 13
6.2.4. Unit of Production Depreciation for Oil and Gas Industry ___________________________________________ 13
6.2.5. Straight Line Depreciation Method for Oil and Gas Industry _________________________________________ 13
Oracle E-Business Suite Release 12.2 Release Value Proposition ii

6.3. Reduce cost through improved reporting ________________________________________________ 14
6.3.1. Flexible Reporting Using BI Publisher __________________________________________________________ 14
7. What’s New in Oracle Cash Management? ____________________________________________________ 15
7.1. Streamline and automate processes _____________________________________________________ 15
7.1.1. Simplified Setup and Streamlined Bank Account Reconciliation ______________________________________ 15
7.1.2. Increase Automatic Bank Reconciliation Success Rates for First Notice Items ____________________________ 15
7.2. Optimize funds and reduce banking costs ________________________________________________ 15
7.2.1. Effective Monitoring of Bank Balance Trends and Cash Positions _____________________________________ 16
7.2.2. Optimization of Funds with Flexible Cash Pooling _________________________________________________ 16
7.2.3. Reduced Cost for Payments to Bank Accounts in the European Union __________________________________ 16
7.3. Effectively control bank account signatories _____________________________________________ 16
7.3.1. Effective Control of Bank Account Signatories ____________________________________________________ 17
8. What’s New in Oracle Credit Management? ___________________________________________________ 18
8.1. Mitigate credit risk __________________________________________________________________ 18
8.1.1. Compliance with Corporate Credit Policy through Enhanced Credit Scoring _____________________________ 18
8.1.2. Better Credit Decisions with Credit Scoring Model Enhancements _____________________________________ 18
8.1.3. Improved Knowledge Base with Multi Period Financial Data Comparison_______________________________ 18
8.2.1. Improved Credit Review Process for Leasing and Loans_____________________________________________ 19
8.2.2. Rules-based Automated Credit Analyst Assignment ________________________________________________ 19
9. What’s New in Oracle Customer Data Hub? ___________________________________________________ 20
9.1. Mitigate risk and enforce compliance ___________________________________________________ 20
9.1.1. Tax Validation Management with Tax Geography Hierarchy _________________________________________ 20
9.1.2. Improved Data Quality Management ____________________________________________________________ 20
9.1.3. Real-time Address Validation for Tax Purposes ___________________________________________________ 21
9.2.1. Multi-Org Access Control (MOAC) ____________________________________________________________ 21
9.2.2. Synchronized Customer Records with the Help of Integration Services _________________________________ 21
10. What is Oracle E-Business Tax? __________________________________________________________ 22
10.1. Increase transparency and efficiency with centralized setup ________________________________ 22
10.1.1. Centralized Tax Configuration Setup _________________________________________________________ 23
10.1.2. Centralized Tax Record Repository for Audit and Reporting _______________________________________ 23
10.2. Reduce cost _________________________________________________________________________ 23
10.2.1. Automatic Tax Exemption and External Provider Service Subscriptions ______________________________ 23
10.2.2. Simplified Implementation with Guided Configuration ___________________________________________ 23
10.3. Improve business agility ______________________________________________________________ 24
10.3.1. Automatic Application of Specific Tax Configuration to Desired Business Entities _____________________ 24
10.3.2. Comprehensive Tax Calculation Methodology __________________________________________________ 24
11. What’s new in Oracle Environmental Accounting & Reporting? ________________________________ 25
11.1. Improved Reporting and Analytics _____________________________________________________ 25
11.1.1. Updated Carbon Disclosure Project Report ____________________________________________________ 25
11.1.2. Enhanced Performance Dashboards __________________________________________________________ 26
11.1.3. Carbon Permits Management _______________________________________________________________ 26
11.2. Enhanced Key Performance Indicators__________________________________________________ 26
11.2.1. Enhanced Key Performance Indicators ________________________________________________________ 26
12. What’s New in Oracle General Ledger? ____________________________________________________ 27
12.1. Centralize setup for transparency and efficiency __________________________________________ 27
12.1.1. Multiple Accounting Representations Using Centralized Accounting Setup ___________________________ 27
Oracle E-Business Suite Release 12.2 Release Value Proposition iii

12.1.2. Enhanced Reporting Currency_______________________________________________________________ 27
12.2.1. Greater Efficiency in Allocations ____________________________________________________________ 28
12.2.2. Improved Operational Efficiencies during Journal Import, Processing and Posting ______________________ 28
12.3. Improve reconciliation and auditability _________________________________________________ 28
12.3.1. Better Financial Visibility across Your Enterprise _______________________________________________ 29
12.3.2. Streamlined Subledger to General Ledger Reconciliation__________________________________________ 29
13. What’s New in Oracle Internet Expenses? __________________________________________________ 30
13.1. Mitigate risks and enforce compliance __________________________________________________ 30
13.1.1. Policy Compliance with Global Per Diem and Mileage ___________________________________________ 30
13.1.2. Enhanced Per Diem and Mileage Calculations __________________________________________________ 30
13.1.3. Automatic Matching of Advance Payments to Expense Reports_____________________________________ 30
13.1.4. Flexible Application of Cash Advances to Expense Reports _______________________________________ 31
13.1.5. Expense Policy Adherence with Payment Holds and Automatic Notifications __________________________ 31
13.1.6. Enhanced Cost Center and Projects Approvals __________________________________________________ 31
13.1.7. Enforce Compliance with Itemization Control __________________________________________________ 31
13.1.8. Regional Expense Policy Compliance through Flexible Configuration _______________________________ 32
13.1.9. Enhanced User Interface for Cost Efficient Audit Management _____________________________________ 32
13.1.10. Better Auditability of Expense Allocations _____________________________________________________ 32
13.2. Reduce cost _________________________________________________________________________ 32
13.2.1. Effective GL Accounting Validations _________________________________________________________ 32
13.3. Increase productivity with streamlined and automated processes ____________________________ 33
13.3.1. Accelerated Expense and Audit Process when Physical Receipts are not Required ______________________ 33
13.3.2. Automated Transaction File Transfers from American Express _____________________________________ 33
13.3.3. Automatic Itemization of Expenses from Visa __________________________________________________ 33
13.3.4. Rapid Expense Entry Process with Expense Allocations __________________________________________ 33
13.3.5. Accelerated Expense Process with Parallel Approvals ____________________________________________ 33
13.3.6. Faster Approvals with Document Attachments __________________________________________________ 34
13.3.7. Flexible Expense Allocations with Split Expenses _______________________________________________ 34
14. What’s New in Oracle Loans? ____________________________________________________________ 35
14.1. Streamline loan processing and enforce policy for agents ___________________________________ 35
14.1.1. Streamlined Loan Processing with Configurable Loan Types and Products ____________________________ 35
14.1.2. Multiple Disbursement Loans _______________________________________________________________ 35
14.2. Proactively manage loan portfolio ______________________________________________________ 35
14.2.1. Loan Portfolios, Graphs & Online Reporting for Proactive Portfolio Management and Reporting __________ 36
14.3. Reduce credit risk ___________________________________________________________________ 36
14.3.1. Sophisticated Credit Decisions with Automated Credit Reviews ____________________________________ 36
14.3.2. Reduced Risk with Federal Budgetary Control __________________________________________________ 36
15. What’s New in Oracle Payables? __________________________________________________________ 37
15.1. Reduce risk and improve compliance ___________________________________________________ 37
15.1.1. Greater Legal Context Visibility with Legal Entity and Improved Transaction Processing ________________ 37
15.1.2. Centralized Payment Processing _____________________________________________________________ 37
15.1.3. Automated Netting of Customer and Supplier Balances ___________________________________________ 38
15.2. Streamline and automate processing ____________________________________________________ 38
15.2.1. Easier and Faster Supplier Maintenance _______________________________________________________ 38
15.2.2. Simplified Setup of Supplier Bank Accounts ___________________________________________________ 38
15.2.3. Improved Invoice Processing with Invoice Lines ________________________________________________ 38
15.2.4. Streamlined Invoice Processing for Complex Services like Contract Financing, Retainage, and Progress Terms
39
15.2.5. Enhanced Invoice Approval with Line Level Approval ___________________________________________ 39
15.2.6. Improved Non PO Invoice Processing ________________________________________________________ 39
Oracle E-Business Suite Release 12.2 Release Value Proposition iv

15.2.7. Effective Collaboration with Suppliers through Oracle iSupplier Portal_______________________________ 40
16. What’s New is Oracle Payments? __________________________________________________________ 41
16.1. Reduce cost _________________________________________________________________________ 41
16.1.1. Configurable Formatting Framework _________________________________________________________ 41
16.1.2. Reduced Costs with Flexible Validation Model _________________________________________________ 41
16.1.3. End to End Process Automation _____________________________________________________________ 42
16.1.4. Easier Reconciliation of Funds Capture Transactions _____________________________________________ 42
16.2. Mitigate risk ________________________________________________________________________ 42
16.2.1. Improved Visibility with Payment Dashboards __________________________________________________ 42
16.2.2. Secure Payment Data Repository ____________________________________________________________ 42
16.2.3. Efficient Disbursement Process ______________________________________________________________ 42
16.2.4. Operational Risk Management with Improved Credit Card Security _________________________________ 43
16.3. Streamline and automate processing ____________________________________________________ 43
16.3.1. Improved Customer Service with Support for Additional Payment Options ____________________________ 43
16.3.2. Improved Customer Satisfaction with Notification Functionality ____________________________________ 43
17. What’s New in Oracle Property Manager ___________________________________________________ 44
17.1. Reduced administrative overhead of tracking occupancy ___________________________________ 44
17.1.1. Streamlined Financial Operations ____________________________________________________________ 44
17.1.2. Effectively manage occupancy ______________________________________________________________ 44
17.2. Improved variable rent calculation _____________________________________________________ 45
17.2.1. Streamlined variable rent calculation process ___________________________________________________ 45
17.2.2. Added flexibility to variable rent calculation ___________________________________________________ 45
17.2.3. Broaden the variable rent calculation fundamentals ______________________________________________ 45
17.2.4. Usability improvements____________________________________________________________________ 45
17.3. Reduced complexity of index based rent adjustments ______________________________________ 46
17.3.1. Ability to early terminate a rent increase agreement ______________________________________________ 46
17.3.2. Streamline Process _______________________________________________________________________ 46
17.3.3. Improved handling of back bills _____________________________________________________________ 46
17.3.4. Comprehensive Reporting __________________________________________________________________ 46
17.4. Ability to manage complex operating expenses ___________________________________________ 46
17.4.1. Capture agreements in a structured way _______________________________________________________ 47
17.4.2. Easy Reconciliation _______________________________________________________________________ 47
18. What’s New in Oracle Receivables? ________________________________________________________ 48
18.1. Mitigate risk and enforce compliance ___________________________________________________ 48
18.1.1. Flexible Revenue Recognition Rules, Including Partial Period Revenue Recognition ____________________ 48
18.1.2. COGS and Revenue Matching ______________________________________________________________ 48
18.1.3. Reduced Risk with Payment Based Revenue Recognition _________________________________________ 48
18.1.4. Quick Resolution of Credit Card Payment Errors ________________________________________________ 49
18.1.5. Regulatory Compliance with E-Business Tax Solution ____________________________________________ 49
18.2.1. Granular Cash Application at the Invoice Line Level _____________________________________________ 49
18.2.2. Streamlined Funds Capture Processing through Centralized Payment Engine __________________________ 49
18.2.3. Improved Chargeback Reconciliation _________________________________________________________ 49
18.3. Improve customer bill presentment _____________________________________________________ 50
18.3.1. Improved Customer Communication with Attachment Printing _____________________________________ 50
19. What is Oracle Subledger Accounting? _____________________________________________________ 51
19.1. Meet diverse global accounting and tax requirements ______________________________________ 51
19.1.1. Simultaneous Compliance with Multiple Accounting Requirements _________________________________ 51
19.1.2. Increased Flexibility with Configurable Accounting Rules _________________________________________ 52
19.1.3. Enhanced Reporting Currency Functionality____________________________________________________ 52
Oracle E-Business Suite Release 12.2 Release Value Proposition v

19.2. Centralize accounting policies for greater control, transparency and auditability ______________ 52
19.2.1. Summarized Information for Streamlined General Ledger without Sacrificing Details ___________________ 52
19.2.2. Draft Accounting for Previewing Accounting Impact _____________________________________________ 53
19.2.3. Increased Productivity with Automatic Replacement for Disabled Accounts ___________________________ 53
19.2.4. Gapless Sequential Numbering for Audit and Global Legal Compliance ______________________________ 53
19.2.5. Best Practices for Intermediary Account Processing ______________________________________________ 53
19.2.6. Reduced Cost and Unparallel Visibility with a Single Global Accounting Repository ____________________ 54
19.3.1. Reduced Period End Closing Time with Straight through Accounting Processing _______________________ 54
19.3.2. Simplified Customer and Supplier Balance Reconciliation_________________________________________ 54
19.3.3. Support for Automated Multi-Period Accounting ________________________________________________ 54
19.3.4. Automatic Foreign Currency Gain/Loss Calculations _____________________________________________ 55
19.3.5. Quicker Upgrades and Implementations with Application Accounting Definitions Loader ________________ 55
19.3.6. Flexible Standard Reporting ________________________________________________________________ 55
19.3.7. Improved Reporting and Analysis with Supporting References _____________________________________ 55
20. What’s New in Oracle Treasury? __________________________________________________________ 56
20.1.1. Automated Cash Pooling Across Legal Entities _________________________________________________ 56
20.1.2. Hedge Effectiveness Testing under FAS 133 and IAS 39 Accounting Standards ________________________ 56
20.1.3. Automatic Floating Rate Reset for Bonds ______________________________________________________ 56
20.2. Manage operational risk ______________________________________________________________ 57
20.2.1. Automatic Bank Account Update for Redirecting Payments to a New Bank Account ____________________ 57
21. Global Enhancements ___________________________________________________________________ 58
21.1. China ______________________________________________________________________________ 58
21.1.1. Financial Control and Reporting _____________________________________________________________ 58
21.1.2. Transaction Tax__________________________________________________________________________ 58
21.2. India ______________________________________________________________________________ 59
21.2.1. Transaction Tax__________________________________________________________________________ 59
21.3. Japan ______________________________________________________________________________ 60
21.3.1. Asset Lifecycle Management _______________________________________________________________ 60
Oracle E-Business Suite Release 12.2 Release Value Proposition vi

1. Disclaimer
This Release Value Proposition (RVP) describes the key benefits of select product
features proposed for the specified release of the Oracle E-Business Suite. This
document describes new or changed functionality between E-Business Suite 11i.10 and
12.2. It is intended solely to help you assess the business benefits and value of
upgrading to the specified release of the Oracle E-Business Suite.
This document in any form, software or printed matter, contains proprietary information
that is the exclusive property of Oracle. Your access to and use of this confidential
material is subject to the terms and conditions of your Oracle Software License and
Service Agreement, which has been executed and with which you agree to comply. This
document and information contained herein may not be disclosed, copied, reproduced or
distributed to anyone outside Oracle without prior written consent of Oracle. This
document is not part of your license agreement nor can it be incorporated into any
contractual agreement with Oracle or its subsidiaries or affiliates.
This document is for informational purposes only and is intended solely to assist you in
planning for the implementation and upgrade of the product features described. It is not
a commitment to deliver any material, code, or functionality, and should not be relied
upon in making purchasing decisions. The development, release, and timing of any
features or functionality described in this document remains at the sole discretion of
Oracle.
Due to the nature of the product architecture, it may not be possible to safely include all
features described in this document without risking significant destabilization of the
code.
Oracle E-Business Suite Release 12.2 Release Value Proposition Purpose of Document 1
2. Introduction
2.1. Purpose of Document

This document describes the value associated with the new features and enhancements
planned for Oracle E-Business Suite Release 12.2 (inclusive of features and
enhancements from Releases 12 and 12.1). It is a roadmap intended to help you assess
the business benefits of Release 12.2 and plan your information technology (IT) projects
and investments.
The new features and enhancements included in this document are grouped by product.
Our goal is to ensure that you leverage technology to its fullest to increase the efficiency
and effectiveness of your operations. Please note that the final release may not include
every feature discussed in this document, and a specific feature may become part of a
different application or have a different product name from that cited in this document.
Oracle E-Business Suite Release 12.2 Release Value Proposition Purpose of Document 2
3. Financials Release 12.2 Value Proposition
For nearly a decade, finance organizations have been on a path to transform themselves
into a strategic partner to the business. Their goals are to separate routine work from
more value-add work, centralize the former to gain efficiencies, and decentralize the
latter by embedding finance in the lines of business to help with things like decision
support and strategic planning. The focus is on driving revenue growth while
maintaining costs in an ever more complex, global and regulated environment.
Finance organizations that succeed in this transformation process will ultimately help the
business compete against an ever larger pool of competitors, due in large part to
globalization.
Oracle E Business Suite Release 12.2 enables today’s finance organizations to transform
their financial model to take advantage of the opportunities brought on by globalization
by providing a set of integrated applications that help alleviate the risks organizations
face and improve their operational performance.
Oracle E-Business Suite Financials Release 12.2 (inclusive of Release 12) is focused on
the following key areas:
 Support global and shared service operations
 Enhance operational efficiency
 Reduce risk
3.1. Support global and shared service operations

The complexity of operating in highly competitive, global economy with ever more
regulation means that managing this complexity and finding ways to simplify and
standardize has become critical to enabling a platform for growth. This complexity has
increased the demands on finance with the business expecting more decision support,
better information, and efficient transaction processing while investors and regulators
want increased transparency and better compliance.
To meet rising expectations, the finance function must redefine itself as a strategic
partner to the business without sacrificing the cost or quality of the routine services it
provides. Many organizations have been able to accelerate the finance transformation
process by borrowing the best practices of world-class performers. In the area of
transaction processing efficiency, a common characteristic of leading finance
organizations is the adoption of shared services.
Finance can achieve significant cost savings by consolidating routine processes into a
shared services environment that is located in a low-cost country. Even more substantial
savings can be gained when companies use this as an opportunity to consolidate finance
systems, standardize processes, and identify global process owners to eliminate
redundancies. By designing better controls into the processes, companies can improve
governance and reduce audit costs. In addition, shared service organizations often
provide better customer service and more timely and consistent information.
Oracle E-Business Suite Release 12.2 Release Value Proposition Support global and shared service operations 3
The heart of Release 12.2 for Financials is enabling businesses to work globally, whether
this is across applications, divisions, or regions. The new architecture and enhancements
enable businesses to standardize accounting and tax rules with centralized setup and
maintenance that is also highly flexible to meet diverse global financial reporting
requirements. Secondly, as globalization shifts work around the world, companies must
address the different country accounting and reporting requirements in which they
operate. This requires producing multiple sets of financial statements to satisfy local,
statutory, and parent company reporting needs. Together with Oracle General Ledger,
Oracle’s centralized Subledger Accounting enables compliance with multiple accounting
requirements concurrently.
3.2. Improve operational efficiencies

Manual financial processes consume resources and time that could be better leveraged
for more strategic activities. Companies are always seeking to reduce back-office costs
to help boost the bottom line and Oracle offers a multifaceted system to support this
need.
Financials in Release 12.2 enables features like Multi-Org Access Control (MOAC)
which combined with ledger set access and reporting streamline back-office functions by
allowing a single person or process to do the work of many. Oracle's Advanced Global
Intercompany System coordinates transactions from initial proposal through approval to
streamline the process and eliminate imbalances. The improved transaction accuracy
results in downstream savings by eliminating time-consuming reconciliation during
consolidation. Oracle’s Web Applications Desktop Integrator (WebADI) spreadsheet
solution delivers full cycle accounting capabilities in a familiar spreadsheet environment
to help maintain the productivity of finance professionals. At a macro level, Oracle's
ability to support a single global instance simplifies the creation of shared service centers
that drive efficiencies through economies of scale, and also establish global processing
standards. Not only do shared service centers lower the cost of operations but they also
minimize process risks by reducing the number of points to control. Finally, the
unparalleled processing horsepower of Oracle's solution enables you to handle large
volumes of data to drive efficiency of financial processes even under the most aggressive
performance requirements.
3.3. Reduce risk

Regulatory compliance continues to be at the front-and-center of concerns for finance
professionals and corporate executives. Furthermore, businesses are feeling the pressure
to effectively leverage technology while better understanding and mitigating process
risks.
The Financial Control and Reporting solution enables companies to improve control over
the journal approval processes with workflows that clearly define the routing sequence
and approvers at each step. To handle evolving business structures, Oracle's centralized
and configurable accounting solution enables compliance with multiple legislative,
industry or geographic requirements concurrently for a single entity. As a common data
model and repository for all subsystem accounting activity, Oracle Subledger Accounting
increases transparency and enables full auditability of transaction and accounting
information with robust drilldown from Oracle General Ledger to the subledger and
back.
Oracle E-Business Suite Release 12.2 Release Value Proposition Improve operational efficiencies 4
To support complex business structures as well as mergers and divestitures, Oracle offers
complete and built-in consolidation tools that help you to centrally manage the global
consolidation process. A centralized consolidations dashboard allows you to control this
process with actionable and timely alerts as well as the ability to lock down the process
and prevent further changes to finalized results.
Oracle E-Business Suite Release 12.2 Release Value Proposition Reduce risk 5
4. Architectural Features and Closely Related
Enhancements
Release 12.2 is designed to increase the ease with which you understand and process
your worldwide business transactions. It reflects the maturity of several initiatives
designed to rationalize subledger bookkeeping, generalize transaction tax compliance
and improve access to subledger data, with the intention of both facilitating subledger
shared services and improving and standardizing throughput.
In Release 12.2, Oracle Financials delivers benefits in these focus areas:
 Gain process efficiencies
 Enforce controls and reduce risk
 Provide visibility and drive performance
4.1. Gain process efficiencies

Eliminating redundant processes, continuously lowering the unit cost per transaction
through self-service, automating processes, and standardizing common business practices
reduces costs. In an effort to focus business units on their core competencies, increase
efficiencies company-wide, and better manage and access information, companies
consolidate non-revenue generating, administrative tasks in shared service centers.
4.1.1. Role-Based Access
A shared services model of operations drives cost savings and increases information
quality. By centralizing information through a shared service center, a consolidated view
of essential decision-making information is available and accessible globally.
Standardization of common business practices also adds to the timeliness and accuracy
of data. With consistent business processes throughout the enterprise, information can
be gathered uniformly, with consistent quality. Services can be shared at many different
levels, and shared service centers can exist for different reasons.
Multi-Org Access Control enables companies that have implemented a shared services
operating model to efficiently process business transactions by allowing them to access,
process, and report on data for an unlimited number of operating units within a single
applications responsibility. This increases the productivity of shared service centers, as
users no longer have to switch responsibilities when processing transactions for multiple
operating units at a time. Data security and access privileges are still maintained using
security profiles that now support a list of operating units.
4.1.2. Increased Efficiency for Processing and Reporting Across Ledgers
Ledgers sharing the same Chart of Accounts, Calendar and Period Type can be combined
into a Ledger Set. They allow processing and reporting to be performed on multiple
ledgers at the same time, including the ability to view and report, open and close periods,
create journal entries, and perform allocations across Ledgers. In addition to increased
processing efficiencies, Ledger Sets provide greater visibility and control across all
Ledgers assigned to a Ledger Set.
Oracle E-Business Suite Release 12.2 Release Value Proposition Gain process efficiencies 6
4.1.3. Streamlined Accounting Setup
Enterprises want their financial applications to reflect their real-world organization

structure to make reporting easier. Part of a financial system implementation is to
correctly reflect the relationships between legal organizations, management
organizations, and business divisions. The Accounting Setup Manager acts as the
central location for maintaining the relationships between ledgers, legal entities and
operating units all through a single user interface. This centralized setup simplifies the
inquiry and maintenance of these relationships and offers a single, clear view of your
accounting implementation, giving your accountants and auditors full transparency of
your enterprise configuration. Within the accounting setup process, the definition of
legal entities and their accounting context includes the ledgers that will contain the
accounting data for each legal entity. Multi-Org is integrated into the Accounting Setup
Manager so you can define operating units and their relationships to ledgers. For each
operating unit, you will also be able to select a legal entity to provide a default legal
context during transaction processing. An online checklist of accounting setup steps
ensures complete and accurate setup.
4.1.4. Automated and Accurate Intercompany Balances

Organizations must track and document transfers of goods and services between related
legal entities for financial consolidation, local compliance, and tax reporting purposes.
This requires complying with local accounting and tax regulations as well as with
established corporate-wide standards for processing intercompany transactions between
subsidiary legal entities. Advanced Global Intercompany System streamlines the
intercompany trading and reconciliation process across Ledgers by driving balanced
intercompany transactions for the global enterprise.
Oracle Advanced Global Intercompany System (AGIS) in Release 12.2 enables the
initiator organization to create a single batch containing multiple recipient transactions
across different ledgers, currencies and calendars, which are automatically submitted to
all recipients. AGIS enables the intercompany accountant to control whether the
intercompany transactions require approval by the recipient organization or whether the
transactions should be auto approved, providing great flexibility for straight through
processing of intercompany transactions. In respect of intercompany regulations, certain
European countries require that physical intercompany invoices are generated for
intercompany trading, whereas other countries such as the U.S. do not require
intercompany invoices but just require intercompany journals to be generated in General
Ledger. In Release 12.2 you have the flexibility to achieve best business practices as
well as the ability to adhere to specific local regulations, with the option to define which
legal entities require intercompany invoices and which legal entities require only manual
journals in General Ledger. AGIS automatically creates the intercompany invoices in
Oracle Payables and Receivables when intercompany invoicing is enabled. AGIS also
provides interactive reconciliation reporting which allows drill-down to the details of
intercompany account balances in order to quickly identify the source of any
discrepancies in trading partner account balances thereby reducing the time spent
reconciling intercompany transactions at period-end.
4.1.5. Efficient Payment Handling
Organizations are always trying to reduce the administrative and processing costs
associated with payment processing. With Oracle E-Business Suite Release 12.2,
organizations can process payments and collections faster using a single payment engine
that manages disbursements and receipts using Oracle Payments, the single central
source for all payment formats.
Oracle E-Business Suite Release 12.2 Release Value Proposition Gain process efficiencies 7
The highly configurable centralized payments engine enables straight-through processing
(STP) based on industry standard protocols, with a dashboard for process visibility and
management. Along with the new centralized bank account model and the enhancements
to Multi-Org Access Control the payments engine delivers significant efficiency to
shared service centers that perform collections and disbursements. For example, a single
responsibility can process invoices across multiple operating units producing separate
payments, all with a single bank instruction significantly reducing administrative and
payment processing costs.
4.1.6. Improved Bank Account Maintenance
Users can spend less time managing bank account information with the new Bank
Account Model in Oracle E-Business Suite Financials. The centralized bank model
provides a single access point for defining and maintaining bank account information for
Oracle Payables, Oracle Receivables, Oracle Advanced Collections, Oracle Payroll,
Oracle Cash Management and Oracle Treasury. In Oracle E-Business Suite Financials
Release 12.2, each internal bank account is assigned to a Legal Entity. Any or all
operating units associated with that legal entity are permitted to use that bank account.
This new architecture eliminates the need to maintain as well as reconcile multiple
account records.
Oracle E-Business Suite Release 12.2 also provides a centralized repository for
suppliers’ and customers’ bank account and credit card information. All data is stored in
one, secure place, and provides shared service centers and collection departments with
consistent information that they need.
4.2. Enforce controls and reduce risks

Today’s organizations face a host of challenges from the new global economy. Working
in multiple geographies, with multiple systems and rules, and according to local
standards, calls for global business processes and work flows that can span applications,
divisions and regions. This need is particularly evident in the area of global financial
management. With ever more compliance and governance mandates, organizations are
centralizing critical finance operations in order to enhance control and reduce risk.
Oracle E-Business Suite Release 12.2 enables you to stay competitive by giving you the
ability to operate globally while meeting local requirements. Oracle E-Business Suite
Financials Release 12.2 centralizes accounting, tax, payment, and banking functions to
provide greater efficiency and control with unparalleled flexibility.
4.2.1. Compliance with Legal and Reporting Requirements
Legal compliance remains of paramount importance in today’s global marketplace.

From an external viewpoint, all transactions are entered into a legal entity. Being able to
easily manage transaction data by legal entity is key to achieving such compliance.
Oracle Legal Entity Configurator enhances the ability to manage the legal corporate
structure and track data from a legal perspective. The solution provides the foundation
for features that help daily operations comply with local regulations. For example,
strengthening the recognition of legal ownership enables accurate intercompany
documentation as well as sophisticated tax calculations specific to local jurisdictions.
The legal functions set for each legal entity provide basic process controls that facilitate
internal control management. Tracking information from the legal perspective enables
detailed reporting at legal entity, establishment, and registration level. To facilitate the
setup, the most common jurisdictions are seeded. Your auditors can easily review
Oracle E-Business Suite Release 12.2 Release Value Proposition Enforce controls and reduce risks 8
jurisdictions and legal authorities for control and compliance and the information is
available for reporting and tax purposes.
4.2.2. Greater Control, Transparency and Auditability with Centralized Accounting
Enterprises often have multiple reporting requirements. These enterprises and their
subsidiaries may need to satisfy the accounting and reporting requirements for multiple
countries or jurisdictions in addition to those of the parent or controlling enterprise. This
can involve accounting in accordance with different accounting principles, in different
currencies, charts of accounts and/or calendars.
Oracle E-Business Suite Financials in Release 12.2 makes parallel financial reporting
easier and streamlines period-end processing by providing support for diverse regulatory
and reporting requirements. Ledgers are used to maintain multiple representations of the
same data. The new centralized Subledger Accounting engine posts subledger data into
these ledgers simultaneously, preserving the integrity of both corporate accounting
standards and local compliance in a single consistent business process.
Organizations can control and monitor every accounting entry from a single setup with
Subledger Accounting. By applying standard accounting rules to all business
transactions, whether they’re generated in Oracle E-Business Suite or third-party,
custom, or legacy applications, Subledger Accounting ensures consistent financial
reporting. Exceptions can only be done through secure overrides, providing high levels
of control and greater adherence to company policies. Configurable accounting rules
enable compliance with multiple legislative, industry or geographic requirements
concurrently in a single instance.
4.2.3. Simplified Tax Compliance
Organizations can reduce the cost and complexity of complying with multiple tax
authorities using Oracle E-Business Tax, a comprehensive infrastructure for managing
transaction tax rules and transactions. This centralized tax repository delivers consistent
tax services to all E-Business Suite business flows through one application interface,
simplifying tax configuration. It also integrates with external tax vendors for
maintaining country-specific tax content.
The automation of tax processing through a central integrated engine improves

operational efficiency and reduces errors. It also decreases the cost of integration and
provides visibility and consistency of information across the E-Business Suite.
Oracle E-Business Tax enables central setup and maintenance by your tax or accounting
personnel. An internal (or multi-entity) subscription model allows the tax rules to be
shared across Legal Entities, along with the ability to apply business rules that enforce
company-wide tax content. You can define business rules to comply with local
regulations, supporting sophisticated tax compliance without the need for workarounds
or customizations. The Tax Rules business flow makes it easy to change existing tax
rules and rates and/or create new rules and rates. An online Tax Simulator models the
impact of your tax setup, allowing you to confirm the accuracy of your changes.
Tax content such as tax jurisdictions, tax rates and tax rules are stored centrally and a tax
determination engine uses these rules to calculate transaction taxes (sales, use, VAT,
etc.) based on the place of supply, the parties involved and other applicability rules. Tax
transactions and all noteworthy tax information for each transaction are recorded in a
Oracle E-Business Suite Release 12.2 Release Value Proposition Enforce controls and reduce risks 9
central Tax Record Repository that can be used by management and tax authorities for
managing, auditing and reporting purposes.
4.3. Provide visibility and drive performance

Informed business decisions come as a result of having a single, comprehensive view of
customers, suppliers, partners, and operations. To make the right investments in your
business, you must have a global view across systems and divisions. Oracle E-Business
Suite Release 12.2 helps you make decisions based on complete information—even
when your systems cross regions and divisions.
4.3.1. Comprehensive Business Intelligence
Finance professionals and managers across an organization desire to monitor

performance, analyze key metrics, and compare them to budgets or performance
benchmarks. They need to be able to quickly spot deviations and take corrective action
before they become problems. Oracle Financial Analytics enables financial analysts to
perform intra-period balance sheet and income statement analyses to determine on a
near-real-time basis how the business is performing. They can also more effectively
manage cash flow by understanding how billing and collections functions are performing
as well as payments and changes in inventory.
For Oracle E-Business Suite Financials customers, Oracle Financial Analytics, part of
the Oracle BI Applications family, provides organizations with better visibility into the
factors that drive revenues, reduce costs, and increase shareholder value. Tight
integration with other applications in the Oracle BI Applications family delivers robust
financial information across the company to enhance customer, supplier, and workforce
analysis. For example, Oracle Financial Analytics enables better insight into the General
Ledger to better understand product or customer profitability or highlights how staffing
costs and employee or supplier performance correlate with increased revenue and
customer satisfaction.
Oracle Financial Analytics provides hundreds of powerful financial metrics, alerts,

reports, and dashboards to financial professionals and line of business managers,
enabling them to gain insight and take appropriate actions. Oracle Financial Analytics
provides more detailed reporting at a greater frequency and to a broader range of users.
Managers and front-line professionals also receive timely information on costs and
revenue at levels of detail such as by product, geography, region, and customer that
allows them to fine-tune strategy and improve performance.
4.3.2. Simplified Self-Service Reporting
Many customers have very strong business requirements for reporting in E-Business
Suite. Whether it’s for reports that include images, charts, multiple fonts and color;
board quality financial statements, or government mandated forms—Release 12.2 makes
producing all types of reports much easier. By delivering reports using BI Publisher
(formerly known as XML Publisher), we’re putting the capability to format and deliver
reports in the hands of business users. Using desktop applications such as Microsoft
Word or Adobe Acrobat, business users create and maintain report formats with their
own templates rather than settling for a standard layout. Financials has moved much of
its standard reporting to the extract and template model, offering increased efficiency to
our customers’ compliance with local reporting obligations.
Oracle E-Business Suite Release 12.2 Release Value Proposition Provide visibility and drive performance 10
5. What’s New in Oracle Advanced Collections?
Oracle Advanced Collections is designed for collection agents and managers, receivables
account managers and revenue management personnel responsible for resolving
delinquencies and recovering outstanding debt from customers.
In Release 12.2, Oracle Advanced Collections delivers benefits in these focus areas:
 Improve managerial decisions
 Comply with bankruptcy regulations
5.1. Improve managerial decisions

Knowing your customers is the foundation for successful revenue and collection
strategies. Oracle E-Business Suite Release 12.2 aggregates customer data across the
entire enterprise and provides you with the customer analytics to support your
managerial decision making.
5.1.1. Improved Ability to Collect with Enhanced Dispute Management

Better dispute management helps you resolve customer issues in a more efficient manner
and improve collection results. Advanced Collections' aging tab now provides an option
to include amounts on transactions that have been partially disputed. You can now also
check to see if the total disputed amount for a transaction is not greater than the total
amount due.
5.2. Comply with bankruptcy regulations

Collections organizations must comply with bankruptcy regulations when dealing or
communicating with distressed or insolvent customers. Your organization may be asked
to provide evidence that it made every reasonable attempt to collect from the customer in
the due course of events before resorting to more decisive steps. Oracle E-Business
Suite Release 12.2 provides your collection department with all the tools necessary for
efficient and compliant collection process.
5.2.1. Global Bankruptcy Visibility at the Party Level

Managing customers appropriately during bankruptcy or collection actions is necessary
in complying with bankruptcy regulations. Collections organizations that track pending
or actual customer bankruptcies are now able to track them at the Party (Customer)
level in Advanced Collections and be assured that all accounts and billing locations
associated to the customer are also included.
Oracle E-Business Suite Release 12.2 Release Value Proposition Improve managerial decisions 11
6. What’s New in Oracle Assets?
Oracle Assets, a comprehensive asset management solution, simplifies asset management
and accounting complexities. It lowers the cost of asset ownership and secures your
assets while giving you a global view.
In Release 12.2, Oracle Assets delivers benefits in these focus areas:
 Increase transparency and efficiency with centralized setup
 Improve processing efficiencies
 Reduce cost through improved reporting
6.1. Increase transparency and efficiency with centralized setup

Complex organizational structure and business operations can translate into complex,
dispersed and even conflicting system setup, which can be time consuming and
cumbersome to maintain. The new architecture in Oracle E-Business Suite Release 12
centralizes many setup areas so that you can efficiently manage them and have better
visibility.
6.1.1. Flexible Accounting Configuration with Oracle Subledger Accounting
Standardizing and centralizing administrative processes and accounting can be

instrumental in lowering the overhead costs. In Release 12.2, Subledger Accounting
provides you with the ability to control and enforce your standard accounting practices
and also gives you the flexibility to handle the exceptions and define additional sets of
accounting rules where needed. Subledger Accounting offers maximum flexibility for
generating accounting entries by making it possible for the user to configure accounting
rules based on virtually any attribute of a transaction.
Oracle Assets is fully integrated with Oracle Subledger Accounting for creating Journal
Entries, Account drill down and Inquiry. Oracle Assets provides several out-of-the-box
sources and rules to derive account code combinations and journal entry descriptions.
Customers can use the seeded Oracle Assets accounting definition or they may use the
flexibility of Subledger Accounting to create their own definitions.
6.2. Improve processing efficiencies

It is easy to get overrun by routine tasks as your business grows. Automating repetitive
and non-value adding activities such as legacy data conversion or depreciation rollback
can help your business stay nimble and adjust to the scale of your growing operations.
Oracle E-Business Suite Release 12.2 provides a number of features to increase your
processing efficiencies.
6.2.1. Enhanced Mass Additions Interface for Legacy Conversions
When implementing a new application, companies look at minimizing the effort involved
in transferring legacy data to the new application. In Oracle Assets Release 12.2 the
mass additions interface has been expanded to enable you to interface more attributes for
a given asset from legacy systems. A number of enhancements in the mass additions
Oracle E-Business Suite Release 12.2 Release Value Proposition Increase transparency and efficiency with centralized setup 12
interface reduce manual intervention and minimize the effort involved in transferring
legacy data to the new application enabling asset managers to focus on more strategic
activities such as reviewing the asset data.
The enhancements include availability of additional attributes to ease legacy data

conversion and extensible public Application Programming Interfaces to automatically
prepare a mass addition line for all required attributes.
6.2.2. Enhanced Productivity with Automated Depreciation Rollback for

Selected Assets
Organizations are always looking to speed up the period close process and need visibility
of the profit and loss (P&L) figures early on. Depreciation costs impact P&L and
companies want to be able to run depreciation and view results early on, even if certain
asset processing is not yet complete for the period. They want the ability to re-run
depreciation for an open period as needed. In Oracle Assets, depreciation rollback has
been automated so that the depreciation rollback is seamless to the user. If you've run
depreciation without closing the period and you decide to make adjustments to an asset,
Oracle Assets will automatically rollback depreciation for that particular asset. There's
no manual action for you to take to rollback depreciation, thus minimizing workload for
you.
6.2.3. Impairments/Unplanned Depreciation Visibility with Flexible

Accounting
The energy industry's best business practice for recording impairments is that the nature
of the impairment must be tracked and a specific account entered dependent of the
impairment type. Impairment is used to reduce the carrying value of a producing asset.
Expressed another way, impairment expense is simply an unplanned depreciation
expense.
Oracle Assets unplanned depreciation provides the additional fields to track the
nature of impairment and provides flexibility around accounting, to be derived from
either the category setup or from the account entered for the unplanned depreciation
entry, enabling the asset user to adhere to best practice for impairments.
6.2.4. Unit of Production Depreciation for Oil and Gas Industry
The Oil and Gas industry's best business practice for assets such as fields, leases and
wells mean that a Unit of Production Depreciation method must be used. In Release
12.2, Oracle Assets has a new Unit of Production depreciation method available to use
for such assets. The Unit of Production depreciation method can be applied to group
assets and then allocated down to the member assets. By using this depreciation method
you can fulfill best business practices of the Oil and Gas industry.
6.2.5. Straight Line Depreciation Method for Oil and Gas Industry
The Oil and Gas industry's best business practice for non-producing assets is to
depreciate them using a specific energy straight line depreciation method. Oracle Assets
in Release 12.2 delivers a new Straight Line depreciation method based on the asset's net
book value. The depreciation can be applied at either member or asset group level. By
using this depreciation method you can fulfill best business practices of the Oil and Gas
industry.
Oracle E-Business Suite Release 12.2 Release Value Proposition Improve processing efficiencies 13
6.3. Reduce cost through improved reporting
Robust and comprehensive reporting ensures that your decision makers have the
necessary information at their fingertips when they need it. Oracle E-Business Suite
Release 12.2 provides you with a flexible reporting tool that can replace expensive
customizations or third party solutions.
6.3.1. Flexible Reporting Using BI Publisher
Oracle Assets leverages Oracle BI Publisher technology to support major asset

transaction reports thereby helping reduce the number of customized reports and
minimize maintenance cost.
The XML extracts that are provided with the reports give you a lot of data to include or
exclude, as you'll be able to copy existing report formats and modify them easily to fit
your needs, using desktop publishing tools familiar to you, such as Microsoft Word or
Adobe PDF.
Oracle E-Business Suite Release 12.2 Release Value Proposition Reduce cost through improved reporting 14
7. What’s New in Oracle Cash Management?
Having enough cash on hand at the right time in order to fund core business operations is
a number one priority for cash managers worldwide. Oracle Cash Management is an
enterprise-wide solution for managing liquidity and controlling cash. Oracle Cash
Management gives you direct visibility into expected cash needs and forecasted cash
receipts. You can quickly analyze enterprise-wide cash requirements and currency
exposures, ensuring liquidity and optimal use of cash resources.
In Release 12.2, Oracle Cash Management delivers benefits in these focus areas:
 Streamline and automate processes
 Optimize funds and reduce banking costs
 Effectively control bank account signatories
7.1. Streamline and automate processes

Oracle E-Business Suite Release 12.2 empowers your cash managers with visibility into
bank account setup and streamlined processes around bank account maintenance and
bank statement processing.
7.1.1. Simplified Setup and Streamlined Bank Account Reconciliation
While a company may choose to record invoices for different organizations, it should be
able to use its money in the bank to service any invoice it owns. Centralizing bank
accounts means creating a single bank account that can be shared across organizations
through granting usage rights. Reconciliation options can now be defined at the bank
account level to ensure consistency across organizations. Multi-Org Access Control in
Oracle Cash Management gives your shared service center staff the ability to access and
process data for multiple operating units within a single responsibility enabling your
organization to achieve significant savings in operating costs without compromising data
security.
7.1.2. Increase Automatic Bank Reconciliation Success Rates for First Notice Items
Bank reconciliation can be very time consuming due to the manual effort in resolving
errors and exceptions. Companies seek to automate the bank reconciliation process to
reduce the overall reconciliation effort so that their staff can focus proactively on more
strategic business issues. In Oracle Cash Management Release 12.2 you can define
flexible matching rules to automatically create and reconcile transactions based on
reported prior day bank statement lines, significantly reducing reconciliation issues
associated with first notice items such as bank fees or bank account interest.
7.2. Optimize funds and reduce banking costs

In a tight credit market every penny counts. Idle funds hidden throughout your global
bank account network can prove to be a healthy liquidity boost if concentrated in a
timely manner. Oracle E-Business Suite Release 12.2 provides you with the tools to
manage and optimize your liquidity while reigning in the payment cost.
Oracle E-Business Suite Release 12.2 Release Value Proposition Streamline and automate processes 15
7.2.1. Effective Monitoring of Bank Balance Trends and Cash Positions
Companies desire to optimize funds while minimizing idle cash, as well as decrease
external borrowing costs and increase overall investment returns. Flexible configuration
and reporting provide the tools necessary to monitor trends and take actions as necessary
to reduce your banking costs. In Oracle Cash Management Release 12.2 you have the
ability to enter and report on different bank account balance types for internal bank
accounts such as ledger, available, value-dated, 1-day float, 2-day float, and projected
balances. Centrally stored balance history provides the flexibility to report on trend
analysis as well as compare actual versus expected balances based on daily cash position
projections. Additionally, you can verify interest amounts charged or credited by your
banks based on balance history and user-defined interest rate schedules.
7.2.2. Optimization of Funds with Flexible Cash Pooling
Companies frequently use cash pooling techniques to optimize funds by consolidating

bank balances from across multiple bank accounts. By consolidating balances and
minimizing idle funds, companies may decrease external borrowing costs and increase
overall investment returns. Oracle Cash Management Release 12.2 provides the ability
to define and manage various types of cash pooling techniques such as:
 Self-Initiated Physical Cash Pools
 Bank-Initiated Physical Cash Pools, or Zero Balance Accounts (ZBA’s)
 Notional Cash Pools
In addition, you have the ability to initiate cash transfers between internal bank accounts
manually or automatically through physical cash pools. The related cash flows are
stored in Oracle Cash Management for reporting purposes and are reflected in your daily
cash positions. Payment processing and accounting is managed via Oracle Payments and
Oracle Subledger Accounting. The full integration of these Oracle E-Business Suite
components enables you to optimize your bank balances, minimize idle funds and
improve your cash.
7.2.3. Reduced Cost for Payments to Bank Accounts in the European Union
With the introduction of Single European Payments Area (SEPA), banks now require
International Bank Account Number (IBAN) as a part of the payment instructions for
settlements in the Euro zone. Without IBAN, higher fees, delayed processing times or
even outright payment failure can be encountered. In order to help organizations
transition to SEPA, Oracle Cash Management in Release 12.2 is integrated with Oracle
Payments to support SEPA payments, by enabling the user to assign a Bank
Identification Code (BIC) for the bank branch and an International Bank Account
Number (IBAN) for the bank account in addition to a reconciliation flag at payment
group level. The additional attributes provide the data to improve straight-through
processing as well as automate the reconciliation of SEPA payments by providing the
capability to reconcile with Payment Group number.
7.3. Effectively control bank account signatories

Despite the multitude of bank accounts a corporation might have, only select few are
authorized to initiate payments. Banks maintain the list of authorized signatories on
record and the best practices demand that you keep a duplicate. With Oracle E-Business
Oracle E-Business Suite Release 12.2 Release Value Proposition Effectively control bank account signatories 16
Suite Release 12.2 your treasury department will have better visibility and control of the
bank account signatories and their limits.
7.3.1. Effective Control of Bank Account Signatories
The growing complexity and interdependence of the global economy requires

accommodating the ever increasing demands of worldwide compliance. Good, holistic
governance and compliance require that management have clear visibility across the
enterprise, have effective internal controls, and operate efficiently. In Oracle Cash
Management Release 12.2 you can enter, maintain and report on users authorized as
signatories for your internal bank accounts. When defining bank account signatories,
you can indicate single and joint signing limits for each bank account as well as signer
group categories, effective dates, approval status, and other relevant information. You
can attach electronic copies of documents like passport photos, signature files, or bank
documents directly to the signing authority records. Reporting used for internal control
and audit purposes is available via an Oracle Discoverer view enabling you to monitor
and control bank account signing authority policy effectively to ensure compliance.
Oracle E-Business Suite Release 12.2 Release Value Proposition Effectively control bank account signatories 17
8. What’s New in Oracle Credit Management?
Oracle Credit Management is the hub for credit analysis and decision making throughout
the Oracle E-Business Suite. This release contains features that extend the functionality
and integration among products in the suite. It also provides the infrastructure to extend
the data needed to make informed credit decisions.
In Release 12.2, Oracle Credit Management delivers benefits in these focus areas:
 Mitigate credit risk
8.1. Mitigate credit risk

Prudent customer credit risk evaluation is a cornerstone of consistent revenue inflow.
This is especially true in difficult economic conditions. Knowing your customers and
effectively evaluating their risk will help you define appropriate credit limits and
minimize bad debt exposure down the road.
8.1.1. Compliance with Corporate Credit Policy through Enhanced Credit

Scoring
You need a 360-degree view of your customer during a credit review, which includes
your own customer records as well as external publicly available information about your
customer. In cases where external data represents a customer's credit score, the raw data
values may be used passed as the actual score. Credit scoring can now include actual
scores or values coming from external data sources such as Dun & Bradstreet's
Paydex® without further manipulation.
8.1.2. Better Credit Decisions with Credit Scoring Model Enhancements
Credit managers need to use the best data available to them, whatever the source, to be
sure their credit approval process is fact-based and accurate. By including data from
external as well as internal sources and employing that data in the best possible manner,
credit managers can be sure they’re using credit information efficiently.
Oracle Credit Management offers an extensive array of historical, system, external, and
user entered data for credit reviews. With the additional ability to add user-defined
data points, credit decisions can be more accurate and comprehensive.
8.1.3. Improved Knowledge Base with Multi Period Financial Data

Comparison
When analyzing customer’s liquidity, a historical trend can draw attention to a potential
red flag much faster than a single snapshot balance sheet number. Credit Management
now allows financial data from previously entered credit applications to be used for
comparison to current financial data. Users can select from a variety of periods and
compare the values in that period to what has been submitted in the new credit
application.
Oracle E-Business Suite Release 12.2 Release Value Proposition Mitigate credit risk 18
It is easy to get overrun by routine tasks as your business grows. Automating repetitive
and non-value adding activities can help your business stay nimble and adjust to the
scale of your growing operations. Oracle E-Business Suite Release 12.2 provides a
number of features to increase your processing efficiencies.
8.2.1. Improved Credit Review Process for Leasing and Loans
Providing credit personnel with the ability to manage risk, while also providing an
avenue to establish a stronger customer relationship is necessary for effective business
management. If a credit request is rejected, reasons for the rejection and options for
changing the rejected credit request should be documented. Improving the credit review
process for leasing and loan processing allows the credit applicants to appeal the
rejection and provide additional information in support of their ability to meet the debt
obligation.
8.2.2. Rules-based Automated Credit Analyst Assignment

A lot of time can be wasted by a credit analyst if he/she has to first figure out every day
where to begin and what are the priorities. Automatic assignment of credit work,
based on parameters defined by management, allows the credit department to operate
smoothly and efficiently with nothing 'dropping through the cracks'.
9. What’s New in Oracle Customer Data Hub?
The largest single area of the Customer Data Management (CDM) product family, this
area covers not only the products Customer Data Hub and Customer Data Spoke, but also
the underlying data model, Trading Community Architecture (TCA). TCA is a
cornerstone of many business objects in E-Business Suite, such as customers, banks and
bank branches.
In Release 12.2, Oracle Customer Data Hub delivers benefits in these focus areas:
 Mitigate risk and enforce compliance
9.1. Mitigate risk and enforce compliance

Accurate customer data ensures that not only your bills are delivered to the right address
but also that your organization remains compliant when, for example, you have to
calculate taxes based on the customer location. Enhancements to the Customer Data
Hub in Release 12.2 are aimed at giving you an extra level of confidence in your data,
especially when it comes to tax calculations.
9.1.1. Tax Validation Management with Tax Geography Hierarchy
Companies have to consider the varying taxation rules on goods and services when
operating in different countries around the world. The transaction tax varies from
country to country. In the U.S. there is sales tax on transactions, which is comprised of a
combination of state, county and city tax; whereas in the UK the usual tax is a VAT rate
of 17.5%. In Release 12.2, the Customer Data Hub provides Tax Geography Hierarchy
Setup user interface to enable you to create and manage a foundation of geographies and
geographical hierarchies for the purpose of tax validation. Once the foundation of
geographies is established, tax administrators can define flexible zones without
impacting the underlying geographies themselves. The geography hierarchy and zones
when implemented correctly supports tax compliance and minimizes risk of user errors.
9.1.2. Improved Data Quality Management
Companies expect application systems to be optimally tuned to provide good

performance as well as have accurate data. In Release 12.2, the Data Quality
Management (DQM) tool delivers improved administration with a new level of audit
detail and maximized out-of-the box performance. A new overview page provides
relevant and timely information about the status of important DQM processes and setups,
while more consistent attributes and transformations naming conventions improve the
user’s experience. A new set of diagnostic reports have been introduced to give users
access to DQM setup information including configuration settings, performance of
activities like staging, as well as health indicators of key setup entities such as the
indexes. Lastly, a new DQM public Application Programming interface is available
for integration into external source applications for performing real-time duplicate
checks against the core Customer Data Hub repository.
Oracle E-Business Suite Release 12.2 Release Value Proposition Mitigate risk and enforce compliance 20
9.1.3. Real-time Address Validation for Tax Purposes
Companies expect real-time address validation on transactions for tax purposes e.g.,
ensuring that addresses have valid geographic information, such as the correct
combination of city, state, and postal code. In Release 12.2 the Customer Data Hub uses
the Trading Community Architecture and provides real-time address validation based on
tax jurisdictions, plus a new geography validation solution based on a manually entered
geographic hierarchy. The solution includes validating the address both while it is being
entered in the user interface and at the Application Programming Interface level. This
feature when implemented correctly supports tax compliance and minimizes risk of user
errors.

Up to date customer records is a necessity, however, keeping customer records current
should not be time consuming. Oracle E-Business Suite delivers a variety of enhanced
features to simplify access to and validation of your customer data.
9.2.1. Multi-Org Access Control (MOAC)
Your company may be operating a shared services center (SSC) and your staff in the
SCC needs to manage customer records for processing of transactions across multiple
organizations. Multi-Org Access Control (MOAC) supported in the Customer Data Hub
in Release 12.2 gives your SSC staff the ability to access customer sites across multiple
operating units within a single responsibility for customer maintenance such as customer
merge, customer import and to view customer accounts online. By leveraging MOAC in
a shared services environment, companies can streamline maintenance of customer
records across multiple sites resulting in significant savings in operating costs without
compromising data security.
9.2.2. Synchronized Customer Records with the Help of Integration Services
Most companies have a combination of some standard financial applications and some
custom built legacy systems and have a need to integrate data between these systems. In
Release 12.2 the Oracle Customer Data Hub (CDH) Integration Services are targeted at
the integration developer responsible for enabling bi-directional synchronization of
customer information between the Oracle Customer Data Hub and related Data Spokes.
The Integration Services Foundation provides a business object-based abstraction of the
Oracle Trading Community Architecture (TCA) to soften the learning curve associated
with implementing a customer data integration initiative using Oracle CDH. This
integration enables you to automatically streamline customer records stored in disparate
systems.
10. What is Oracle E-Business Tax?
Oracle E-Business Tax, introduced in Release 12 provides the infrastructure for
transaction tax knowledge management and 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-Business Tax uniformly
delivers tax services to all E-Business Suite business flows through one application
interface. Oracle E-Business Tax consists of a tax knowledge base, a variety of tax
services that respond to specific tax events, a set of repositories (for tax content and tax
recording) that allows customers to manage their local tax compliance needs in a
proactive manner, as well as the ability to integrate with external tax content providers
through a single integration point. In short, Oracle E-Business Tax is the global and
consistent compliance repository that encapsulates fiscal and tax rules in a single point
solution for tax events that is easy to integrate, extend, and implement.
Oracle E-Business Suite products that are integrated with E-Business Tax include the
following:
 Oracle Purchasing
 Oracle Internet Procurement
 Oracle Receivables
 Consigned Inventory
 Oracle Payables
 Oracle Intercompany Invoicing
 Oracle Order Management
 Oracle Trade Management
 Oracle Services Contracts
 Oracle Order Capture/iStore/Quoting
 Oracle Internet Expenses
 Oracle Project Accounting
 Oracle General Ledger
Oracle E-Business Tax streamlines common processes and procedures around tax
calculation and reporting so that your organization can focus on more value-added
activities such as tax planning.
In Release 12.2, E-Business Tax enables users to:
 Increase transparency and efficiency with centralized setup
 Reduce cost
 Improve business agility
10.1. Increase transparency and efficiency with centralized setup

Today's Organizations tend to work across the globe resulting in complex tax calculation
and reporting requirements which makes it essential to streamline global operations.
One of the primary intents of the new architecture in Oracle E-Business Suite Release 12
is to enable organizations to centrally manage the set up and maintenance in order to
operate effectively around the globe.
Oracle E-Business Suite Release 12.2 Release Value Proposition Increase transparency and efficiency with centralized setup 22
10.1.1. Centralized Tax Configuration Setup
Organizations operating across multiple countries or across multiple states often have
complex tax requirements to record taxes for the products and services being offered or
received. The ability for organizations to automate and streamline calculation of
transaction taxes directly impacts transaction processing efficiency. Oracle E-Business
Tax allows businesses to setup simple as well complex tax requirements in a centralized
repository, where all the tax rules and tax rates can be configured and stored. These tax
setups can by leveraged during transaction creation, for tax calculation.
10.1.2. Centralized Tax Record Repository for Audit and Reporting
For an organization that offers or receives products and services that are taxable, it is
essential not only to calculate the right tax amount, but also to have easy access to
transaction tax information for both reporting and audit purposes. Oracle E-Business
Tax Record Repository stores transaction tax data for all transactions. The transaction
tax data stored in the Tax Record Repository includes pertinent input transaction data as
well as output transaction data the can be accessed and utilized for reporting and ongoing
audit purposes. In addition to the seeded report library, new custom reports can be
efficiently generated from standard tax reporting templates using Oracle BI Publisher.
Additional features such as tax calendar, draft and final reporting, as well as the tax form
support make your tax reporting much more efficient and reliable, which also facilitates
an audit ready system.
10.2. Reduce cost

The set up and maintenance of transaction tax rules is a costly and time consuming.
Automation of the tax rules setup and application using centralized, business driven logic
saves your tax department time while allowing you to correctly calculate and pay all
applicable transaction taxes.
10.2.1. Automatic Tax Exemption and External Provider Service Subscriptions
For an organization, it’s important to understand that a tax dollar saved is a dollar
earned. An organization may be eligible for reduced tax liability by virtue of tax
exemptions or special tax rules.
With E-Business Tax, an organization can automatically apply tax exemption or special
tax rule configuration to all applicable, existing business entities and can also extend any
tax exemption or special tax rule configuration to newly added business entities acquired
in the future to achieve tax savings. Also, in geographies where the in-house tax
expertise may be lacking, E-Business Tax also allows you to use the services of a
certified, third-party tax calculation service provider, thus letting your staff work on their
core competency areas.
10.2.2. Simplified Implementation with Guided Configuration

Setting up complex tax requirements can be a daunting task for an organization. To help
you plan for and ultimately save you time during implementation, a standard setup task
list is available in Oracle E-Business Tax. It provides a methodology and an outline to
better guide a business in the identification of all key elective and mandatory tax setup
tasks to achieve specific transaction tax system functionality. This setup task list was
Oracle E-Business Suite Release 12.2 Release Value Proposition Reduce cost 23
designed to accommodate Oracle E-Business Tax users with different backgrounds and
experience levels with the product.
10.3. Improve business agility

Your business may take you to all ends of the globe, yet no matter what language your
business speaks or in which culture it operates, taxes are one of those certain things you
are going to encounter everywhere. Oracle E-Business Tax provides you with a flexible
framework that matches your business agility to ensure that tax compliance is not
weighing down or interfering with your business.
10.3.1. Automatic Application of Specific Tax Configuration to Desired

Business Entities
As an organization’s structure changes or business grows, the ability to assign previously

created tax configurations to new business units helps you enable transaction processing
in the new business units faster, making your business more agile. With E-Business tax,
you can be as granular or as generic when configuring and assigning tax configurations.
Your tax department can selectively or globally designate the use of specific tax
configuration upfront to all applicable, existing business entities and can also extend any
tax configuration to newly added business entities acquired in the future. This saves you
time and effort related to the tax configuration maintenance, while allowing the system
to grow as your business grows.
10.3.2. Comprehensive Tax Calculation Methodology
Incorrect calculation of transaction taxes can not only result in over or under payment of
transaction taxes but can also lead to penalties imposed by tax authorities. The tax
simulator in E Business Tax provides independent testing of tax configuration to
specifically determine the impact of existing tax configuration on the application of taxes
and tax exemptions on individual transactions. Testing your setup in advance will give
you confidence that the chosen configuration is going to give you the correct result every
time.
Also, within Oracle E-Business Tax, the Tax Determination Services component
identifies and applies the proper method by which to calculate tax on a given transaction
based upon factors such as the tax registration of the parties involved, the applicable tax
calculation location, and any tax rules defined. This will facilitate compliance with
various tax regimes, wherever your business takes you.
Oracle E-Business Suite Release 12.2 Release Value Proposition Improve business agility 24
11. What’s new in Oracle Environmental Accounting &
Reporting?
Oracle Environmental Accounting and Reporting enables organizations to track their
greenhouse gas (GHG) emissions and other environmental data against reduction targets
and facilitates environmental reporting for both voluntary and legislated emissions
reporting schemes. The solution manages this function from within the existing ERP
system and utilizes Oracle Business Intelligence to provide immediate insight into an
organization’s environmental data to identify and manage CO2 and cost reduction
opportunities.
Oracle Environmental Accounting and Reporting enables organizations to capture

environmental data either electronically or manually; convert that to greenhouse gas
emissions; and identify opportunities for CO2 emissions and cost reductions. As an add-
on module to Oracle Financials which seamlessly integrates with existing Accounts
Payable and Inventory business flows, Oracle Environmental Accounting and Reporting
delivers these capabilities without the duplication or double handling of transactions and
data, which is intrinsic in other approaches.
In Release 12.2, Oracle Environmental Accounting and Reporting delivers benefits in the
following focus areas
 Improved Reporting and Analytics
 Key Performance Indicators
11.1. Improved Reporting and Analytics

Increasingly organizations are looking to accurately communicate greenhouse gas
emissions and other environmental impacts to constituents including regulators,
customers, shareholders and employees. Regional regulatory mandates such as the
Carbon Reduction Commitment (CRC) and the Companies Act 2006 (Strategic Report
and Directors’ Report) Regulations 2013 in the United Kingdom and Australia’s
National Greenhouse and Energy Reporting (NGER) Act require accurate and
transparent greenhouse gas reporting. Information voluntarily disclosed to organizations
such as the Carbon Disclosure Project (CDP) also needs to be provided with a high
degree of confidence in order to protect an organization’s credibility and brand.
Practitioners are realizing that the manual spreadsheet-based processes lack the
necessary efficiency, security, and reliability.
11.1.1. Updated Carbon Disclosure Project Report
One of the pre-built OBIEE reporting and analytics dashboards supported in EA&R
covers the quantitative responses to the Carbon Disclosure Project (CDP). The Carbon
Disclosure Project report has been enhanced to support additional questions under the
2012 guidelines.
Oracle E-Business Suite Release 12.2 Release Value Proposition Improved Reporting and Analytics 25
11.1.2. Enhanced Performance Dashboards
Pre-built Oracle Business Intelligence Enterprise Edition (OBIEE) dashboards enable the
dynamic generation of reports providing insight into an organization’s emissions and
other environmental impacts. The dashboards provide information on energy usage,
emissions, key performance indicators (KPIs), activities and transactions. Users can view
graphical representations of the data; drill down into output of past, current, and
projected data; analyze historical trends; define variance thresholds and receive alerts;
and publish and distribute reports in multiple formats. In this release additional pre-built
reports have been added including the Scope 3 Emissions and Emissions by Organization
Level dashboards and Water Consumption and Waste Management Dashboard.
11.1.3. Carbon Permits Management
Cap and trade schemes in California, Europe, Australia, amongst other regions, require
organizations to calculate the correct number of carbon permits required for the specified
reporting period. The Carbon Permit Management report tracks emission data by
region/legislation to show the number of carbon permits necessary to be compliant.
11.2. Enhanced Key Performance Indicators

Oracle Environmental Accounting and Reporting enables organizations to create and
modify standard and custom industry-specific key performance indicators (KPIs) to
measure performance and monitor key environmental metrics such as energy, waste, and
water. Users can normalize data to operational metrics and use a drag-and-drop
environment in OBIEE to create custom reports.
11.2.1. Enhanced Key Performance Indicators
In the 12.2 release it is possible to set a threshold in the KPI Metrics history page
highlighting to users whether the organization is performing above, below or in-line with
the targets so that corrective actions can be taken as needed to successfully execute on
the organization’s sustainability initiatives.
Oracle E-Business Suite Release 12.2 Release Value Proposition Enhanced Key Performance Indicators 26
12. What’s New in Oracle General Ledger?
Oracle General Ledger is a comprehensive financial management solution that provides
highly automated financial processing, effective management control, and real-time
visibility to financial results. It provides everything you need to meet financial
compliance and improve your bottom line. Oracle General Ledger works seamlessly
with other Oracle E-Business Suite products to drive better decision-making, sustainable
financial discipline, regulatory compliance, and optimized business processes at the
lowest cost.
In Release 12.2, Oracle General Ledger delivers benefits in these focus areas:
 Centralize setup for transparency and efficiency
 Improve reconciliation and auditability
12.1. Centralize setup for transparency and efficiency

Complex organizational structures and business operations can translate into complex,
cumbersome to maintain. The new architecture in Oracle E-Business Suite Release 12.2
centralizes many setup areas so that you can efficiently manage them with greater
visibility.
12.1.1. Multiple Accounting Representations Using Centralized Accounting Setup

Companies that are global in nature and that have operations in different locations often
have multiple reporting requirements. These companies and their subsidiaries often need
to satisfy the accounting and reporting requirements for each country as well as those of
the parent company. This involves performing accounting in accordance with
accounting principles and standards of multiple countries and in different currencies,
charts of accounts, and/or calendars. The reporting requirements can also be statutory in
nature, and one subsidiary may even need to satisfy multiple sets of statutory
requirements. Oracle General Ledger simplifies the simultaneous management of the
accounting for all of these different reporting requirements in this latest release. You are
able to define your Ledgers, Legal Entities, Balancing Segment Values and the setup
needed to address each accounting and reporting requirement using the Accounting
Setup Manager. Integration with Subledger Accounting enables Oracle General Ledger
to perform accounting for all reporting requirements of Ledgers simultaneously.
12.1.2. Enhanced Reporting Currency
Most companies follow International Accounting Standards (IAS 21) and Financial
Accounting Standards (FAS 52) recommended best practices for translation of monetary
account balances into other currencies.
Oracle General Ledger in Release 12.2 provides centralized accounting setup enabling
you to define Ledgers and their relationship to Legal Entities, Balancing Segment Values
and Operating Units all in a single place, as well as, assigning Reporting Currency
Ledgers to report data in a different currency to the base currency of the primary ledger.
For each Reporting Currency Ledger, you can convert data at three levels: Journal
Oracle E-Business Suite Release 12.2 Release Value Proposition Centralize setup for transparency and efficiency 27
Level (GL), Subledger Journal level (Subledger Accounting) or Balance Level
(summary) providing you with great flexibility in the automatic generation of reporting
data.

Accounting departments can easily get avalanched by routine tasks as the business
grows. Automating repetitive and non-value added activities such as allocations and
manual journal creation, as well as, creating a shared service center, can help your
accounting department stay nimble and adjust to the scale of your business environment.
Oracle E-Business Suite Release 12.2 provides a number of features to increase your
processing efficiencies.
12.2.1. Greater Efficiency in Allocations
Organizations need to be able to distribute overhead costs across their operations in as

automated a manner as possible to minimize manual user intervention and reduce the
workload on their accounting department. In Oracle General Ledger Release 12.2,
allocations have been enhanced to enable you to allocate financial data from one or
more ledgers to a different target ledger. This enables you to perform cross-ledger as
well as cross currency allocations, which is useful for allocating corporate or regional
expenses to local subsidiaries when each entity has its own ledger which may have
different currencies. Foreign currency allocations are also useful within a single ledger
if you need to allocate amounts to a currency that is different from the primary currency
of a ledger. These allocation enhancements automate calculations and journal entries
that were previously manually calculated or cumbersome to create, reducing the periodic
processing effort.
12.2.2. Improved Operational Efficiencies during Journal Import, Processing and Posting
In a shared services environment users need to post journals for multiple ledgers in an
efficient manner. In Oracle E-Business Suite Release 12.2 a user can now access and
process data in multiple ledgers from a single responsibility utilizing Data Access Sets
and Ledger Sets, enabling your user to define auto-post criteria across ledgers and speed
up the period end processing by posting journals automatically across multiple ledgers
simultaneously. The new journal batch copy feature in General Ledger enables you to
create new journal batches faster by re-using existing journal batch content and
providing flexibility to change period and effective date of the new journal batch during
the copy process, thus reducing the amount of work required. When an account is
disabled, you can improve straight through processing during journal import by defining
the account that replaces a previous disabled account, through the Alternate Account
user interface, thus reducing manual intervention.
12.3. Improve reconciliation and auditability

Period end reconciliation can be a stressful time for your organization if you lack the
proper tools and your financial data is scattered or disconnected. Oracle E-Business
Suite Release 12.2 addresses this pain point with streamlined yet sophisticated process
improvements that can help you reduce the time and efforts required for the period end
close.
12.3.1. Better Financial Visibility across Your Enterprise
Organizations need fiscally controlled financial reporting to gain visibility into financial
results across the enterprise as a whole. In Oracle E-Business Suite Release 12.2 you can
access and process data in multiple ledgers from a single responsibility, enabling
you to define Financial Statement Generator (FSG) reports in Oracle General Ledger that
includes data from multiple ledgers or alternatively run FSG reports for multiple ledgers
simultaneously.
12.3.2. Streamlined Subledger to General Ledger Reconciliation
Financial period end reconciliation is usually very time-consuming for most

organizations. Several new features in General Ledger assist with streamlining the
reconciliation required at period end. First, in Oracle General Ledger Release 12.2 you
can identify specific natural accounts within your chart of accounts as control accounts,
such as Accounts Payable control account and Accounts Receivable control account.
Only specific subledger transactions can be posted to these control accounts which
streamlines the reconciliation between subledgers and General Ledger.
Second, you have the flexibility of deciding how you want to transfer subledger data to
General Ledger, in summary by GL Period or GL Date or in detail. Oracle Subledger
Accounting provides a consistent view when drilling down from General Ledger
balances to subledger transactions.
Third, you can view the balances of multiple detail or summary accounts in a single page
and drill down to supporting journal entries and subledger transactions all within a
browser window with the new web-based interface, Account Analysis & Drilldown.
This easily allows you to review and analyze your general ledger financial data and the
supporting transactional detail.
Lastly, subledger reconciliation to General Ledger can become a problem if your users
are able to reverse subledger journals that have been imported into General Ledger. In
Oracle General Ledger Release 12 you can flag the journal sources that you wish to
freeze, to prevent them from being reversed helping to improve reconciliation between
subledgers and General ledger.
Oracle E-Business Suite Release 12.2 Release Value Proposition Improve reconciliation and auditability 29
13. What’s New in Oracle Internet Expenses?
Oracle Internet Expenses, a travel and expense management solution, is designed to
ensure self service users comply with your expense reimbursement policies, while
quickly and accurately entering and processing their expenses.
In Release 12.2, Oracle Internet Expenses delivers benefits in these focus areas:
 Mitigate risks and enforce compliance
 Reduce cost
 Increase productivity with streamlined and automated processes
13.1. Mitigate risks and enforce compliance

Ensuring employee expense reporting is compliant and all advances are accounted for in
all parts of the world in a multinational corporation is not a trivial task. Oracle E-
Business Suite Release 12.2 provides you with powerful and flexible tools that will allow
you to implement your expense policy in an efficient and effective manner and ensure
compliance.
13.1.1. Policy Compliance with Global Per Diem and Mileage
Organizations want to ensure that their travel and expenses policies are adhered to by
their staff. Automating validations of travel and expense reports as widely as possible
enforces compliance and reduces risk. The ability to enforce compliance with per diem
and helps you comply with various statutory rules that dictate how users should be
reimbursed. In Release 12.2 Oracle Internet Expenses allows you to upload per diem
rates for the Continental United States (CONUS) and outside Continental United States
(OCONUS), as provided by U.S. Government, the policy limits for meals and
accommodation expenses. These limits are automatically enforced, reducing the risk of
errors and ensuring greater travel policy compliance.
13.1.2. Enhanced Per Diem and Mileage Calculations
Expense policies vary by company and may be controlled by country regulations. For
example, in the Nordic countries accumulated mileage count must be tracked and
complex calculations supported to ensure that the appropriate amounts are reimbursed
for the mileage expenditure. Accumulated mileage upload and configurable
calculation formulas provide the flexibility needed to enforce policy compliance on
mileage expenses.
13.1.3. Automatic Matching of Advance Payments to Expense Reports
To offset travel expenses for an employee, companies in the public sector and some
organizations in the private sector will pay a cash advance. The benefit to the employee
is that their out-of-pocket expenses are covered without any material impact to their
personal finances. However, the risk of recovering the funds from the employee can be
high and the process is often time-consuming. By automatically validating advances
against expense reports entered and prompting the end user to apply outstanding cash
advances to expense reports or to require an explanation if an advance is not applied to a
Oracle E-Business Suite Release 12.2 Release Value Proposition Mitigate risks and enforce compliance 30
specific expense report, the risk of recovering cash advances is reduced and the expense
reporting process is streamlined.
13.1.4. Flexible Application of Cash Advances to Expense Reports
A company paying advances to employees for upcoming travel expenses wants to ensure
the advances are recouped. By prompting the end user to apply advances to expense
reports helps mitigate the loss to some extent but there may be cases where the Payables
department needs to intervene and apply an advance to an expense report. This is
especially true if an advance has been open for a long time. In Release 12.2 Oracle
Internet Expenses allows Payables staff to apply outstanding cash advances to
employee's expense reports, providing greater control and reduces risk. In addition, you
can configure audit selection rules to review expense reports that include advances to
further ensure accuracy.
13.1.5. Expense Policy Adherence with Payment Holds and Automatic

Notifications
Employees submitting their expense reports without submitting required receipts should
not be paid if they're not in compliance with expense policy. Organizations want to
automate expense processing and at the same time ensure compliance to their expense
policy. To provide this level of control, Oracle Internet Expenses can automatically
place expense reports on hold for payment if required receipts have not been received.
The employee can be automatically notified, to ensure the employee takes the action to
rectify the issue, reducing the risk of non-compliance and ensuring that the organization
reimburses expenses that are business related, and properly documented and deductible.
13.1.6. Enhanced Cost Center and Projects Approvals
Limited visibility into pending travel costs allocated to a manager's project or

departments has been a painful reality for most organizations. While expenses are
correctly divided between various projects, managers don’t often have the ability to
review these transactions before they are posted.
In Release 12.2 Oracle Internet Expenses, approvals from managers responsible for the
appropriate cost centers or projects are required. The automatic routing of expense
reports to the appropriate managers for approval increases efficiency and reduces risk.
13.1.7. Enforce Compliance with Itemization Control
Inaccurate accounting is a consistent challenge, especially for expense reporting. In

addition, employees don't want the burden of itemizing expenses. While this detailed
information is useful in capturing actual travel expenses by category, employees entering
an expense report want to save time and ideally want to just enter one expense line per
expense. In reality, a single expense may represent multiple expense types such as hotel
accommodation, food, internet connection, and phone charges. The Payables
Department would expect this single expense to be itemized into specific lines for each
of the expense types, to ensure the expenses are accounted for correctly and the expense
policy is adhered to. The Payables Department can configure Oracle Internet Expenses
using itemization control to prompt users to itemize certain types of expenses. Also,
Payables' staff can access the employee's expense report to ensure the expenses are
itemized, correctly accounted for and conform to the company's expense policy.
Oracle E-Business Suite Release 12.2 Release Value Proposition Mitigate risks and enforce compliance 31
13.1.8. Regional Expense Policy Compliance through Flexible Configuration
Companies operating worldwide may have different travel and expense policies to
enforce in various countries. Fully flexible system configuration enables you to
configure the expense submission and processing instructions according to local and
regional requirements. You use region-based messages, for example, to provide different
receipt submittal policies and related processes to meet shared-service or other
organizational needs.
13.1.9. Enhanced User Interface for Cost Efficient Audit Management
During expense processing many organizations spend an inordinate amount of effort

providing data and information for internal auditors to review. If the expense data is
readily available and easy to review, this could help improve efficiency and facilitate
better decision making. In Release 12.2 Oracle Internet Expenses auditors can use the
Audit Expense Report to quickly verify expenses, review reports for policy compliance,
and accounting accuracy. By displaying the relationship between the receipt and the
itemized expense lines, auditor productivity is increased because they can quickly verify
that required receipts have been received.
13.1.10. Better Auditability of Expense Allocations
When auditors review selected expense reports they may want to review expense reports
where employees have used allocations, partly to check that the content matches the
receipt, verify the accounting is correct and if incorrect, to be able to adjust the
allocations. This ensures that the expenses are accounted for correctly in profit and loss
statements.
Oracle Internet Expenses enables auditors to view specific expense reports that include
allocations and allows the auditors to easily update the allocations, as necessary, to
comply with generally accepted accounting practices.
13.2. Reduce cost

Visibility into systematically organized expense data is key to making your audits run
smoothly and efficiently. New features and enhancements in E-Business Suite will help
you manage audits costs.
13.2.1. Effective GL Accounting Validations
Inaccurate accounting slows period close and drives costs upward due to time and
resources used to research, find, and correct invalid General Ledger accounting codes or
combinations. However, the timing of when these errors are captured and corrected can
be defined by your organization's business process. Whether your accounting
department adjusts expense report accounting that fail or the employee that entered the
expense report can correct expense accounting, using Oracle Internet Expenses and
workflow gives you control of when account validation and correction process occurs.
You can choose to let the end user correct any invalid accounting at time of expense
report submission or you can choose to let your accounting department correct invalid
code combinations via a workflow notification. The benefit is that your company can
configure the expense report validation to fit your business needs.
13.3. Increase productivity with streamlined and automated processes
When you are in the expense processing department, your organization’s employees are
your customers and they expect nothing short of exemplary customer service from you.
Processing expense reports in line with the policies and in a timely manner can get
daunting if you do not have a good grasp of your operations. Oracle E-Business Suite
Release 12.2 provides a number of features to increase your processing efficiencies by
streamlining and automating key processes.
13.3.1. Accelerated Expense and Audit Process when Physical Receipts are not
Required
IRS regulations allow that electronic transactions from corporate travel cards are valid as
receipts for most expenses with a few exceptions, such as car rentals. For companies
that implement this best practice, their employees can submit expense reports without
receipts, provided the receipts fall within a certain threshold. By automatically
uploading the business expenses from the employee credit card directly into Oracle
Internet Expenses using delivered interfaces and configuring the system appropriately,
the need for physical receipts is eliminated which speeds up auditing and expense
payment process.
13.3.2. Automated Transaction File Transfers from American Express

Expense entry and validation is a time consuming task. The ability to use corporate
credit card data for expense entry and reporting helps streamline administration of credit
card programs as well as expenses entry. More and more credit card companies provide
self service websites for their customers to access and download credit card data on a
regular basis. This consumer trend has also occurred for corporate travel card providers
By using American Express self service website you can download your company's data
files and import them into Oracle Internet Expenses. This flexibility allows your
organization to automate this task within the expense process and to download the data at
a time to suit your business.
13.3.3. Automatic Itemization of Expenses from Visa
Employer Credit Cards (Procurement Cards) are widely provided to employees in larger
companies. This enables employees to pay their travel and expenses bills easily but also
to help speed up expense processing. Credit Card companies have worked with suppliers
to provide more detailed information within credit card files, to help minimize manual
user intervention. Oracle Internet Expenses uses the detail transaction data to
automatically itemize credit card transactions, reducing the time users spend completing
expense reports, and ensuring transactions are accounted for properly.
13.3.4. Rapid Expense Entry Process with Expense Allocations
Completing expense reports is one of the least favorite activities of most business
travelers. Any additional steps that need to be completed as part of expense reporting,
such as allocations, is often viewed as cumbersome and time-consuming. Now users can
speed up the expense entry by configuring allocation sets to use again and again for
expense reports for rapid expense entry.
13.3.5. Accelerated Expense Process with Parallel Approvals
If an expense report has to be routed to various managers, due to various cost center or
project charges, and it cannot be routed simultaneously to all the managers, the expense
Oracle E-Business Suite Release 12.2 Release Value Proposition Increase productivity with streamlined and automated processes 33
processing takes longer, due to the wait for each manager to approve the expense. Using
parallel approvals enables the end user to send the expense report for approval to
multiple approvers simultaneously, requesting their approval all at once, thus speeding
up the overall timeframe for expense report completion and payments. In this way,
organizations can simplify expense processing and improve overall productivity.
13.3.6. Faster Approvals with Document Attachments
As modern technology advances companies look at gaining benefits from it, one of them
being the area of document attachments. With increased compliance regulations related
to travel and entertainment, documenting who was at an event, the purpose and employee
and non-employee attendees, is critical. Along with expense report receipts that can be
scanned and added as document attachments, end users also have the option to attach
meeting agendas or separate documents related to the event. The ability to attach
receipts to expense reports facilitates more efficient approvals, since managers can
access and view the attached document online as part of their approval processing.
13.3.7. Flexible Expense Allocations with Split Expenses
Capturing project costs which include associated travel is challenging for project-centric
divisions or organizations. However, the business need to capture this information
enables organizations to compete more effectively and to determine opportunities for
greater efficiencies internally. Full flexibility and improved usability is provided by
allowing end users to split expenses across multiple accounting segment values or
multiple projects or tasks and giving them the flexibility to split one, many, or all
expenses at the same time using equal percentages, or user-defined percentages or by
individual expense amounts. In Release 12.2, Internet Expenses enables you to meet the
requirement to capture project costs without imposing additional work on the business
traveler.
Oracle E-Business Suite Release 12.2 Release Value Proposition Increase productivity with streamlined and automated processes 34
14. What’s New in Oracle Loans?
Oracle Loans is designed to support the full range of business activities associated with
creating, approving, funding, servicing and monitoring loans. Its purpose is to automate
and standardize the loan origination and loan servicing processes for lending
organizations. Oracle Loans is geared toward federal and state/local agencies and other
lending organizations that offer direct loans or extended repayment plans.
In Release 12.2, Oracle Loans delivers benefits in these focus areas:
 Streamline loan processing and enforce policy for agents
 Proactively manage loan portfolio
 Reduce credit risk
14.1. Streamline loan processing and enforce policy for agents

Each loan agent may be in charge of processing multiple loan requests every day.. Oracle
Loans enables your loan agents to manage their workload more efficiently, while staying
in line with corporate policies.
14.1.1. Streamlined Loan Processing with Configurable Loan Types and

Products
Loan agents frequently manage multiple loan programs at the same time. Each loan
program has its unique requirements, such as amount and term limitations, fees, index-
based rates, payment frequency, approval conditions, schedule of multiple
disbursements, etc. Making sure each loan application meets these requirements is a
challenging process, if done manually. Failure to comply with the loan program
requirements can lead to undesirable exposure and even losses. In order to address this
issue, configuration of loan types and application of default values help streamline the
loan agent's application process while enforcing policy across agents and applications,
speeding up loan processing and minimizing risk of errors.
14.1.2. Multiple Disbursement Loans
When customers are unable to pay their bills, in certain situations a receivable can be
converted to an extended repayment plan (a loan). The new feature allows defining rules
that will track outstanding receivables and convert them to loans automatically, thus
saving time and eliminating manual intervention.
14.2. Proactively manage loan portfolio

In uncertain economic times you need to stay on top of your loan portfolio in order to
ensure your assets are performing and compliant. Oracle Loans provides you with the
visibility into the health of your portfolio.
Oracle E-Business Suite Release 12.2 Release Value Proposition Streamline loan processing and enforce policy for agents 35
14.2.1. Loan Portfolios, Graphs & Online Reporting for Proactive Portfolio Management
and Reporting
Senior management at lending organizations expects their loan agents to work

proactively to ensure they're as productive as possible. Configurable online dashboard
with key portfolio data and graphs, informative reporting and automated notifications
place all the actionable information to the loan agent’s fingertips.
14.3. Reduce credit risk

Prudent customer credit risk evaluation is a cornerstone of consistent revenue inflow.
This is especially true in difficult economic conditions. Knowing your customers and
effectively evaluating their risk will help you define appropriate credit limits and
minimize bad debt exposure down the road.
14.3.1. Sophisticated Credit Decisions with Automated Credit Reviews
Lending organizations want to ensure they minimize their risk by ensuring they're not
lending to a person or company that has a poor credit history and therefore may not be
able to repay the loan. Automating the credit review process for a loan, increases
efficiency and reduces revenue risk. This credit review process is automated and
tightly integrated between Oracle Loans and Oracle Credit Management enabling the
loans agent to review the credit status for the loan at any point in time to make the
appropriate decision for a loan.
14.3.2. Reduced Risk with Federal Budgetary Control
U.S. Federal Agencies enforce funds control, which means that before submitting the
loan for approval it must be funds checked against the funds available. Fund checking
for loans is fully automated and the loan agent is alerted if the funds check fails with a
warning or error, enabling the loan agent to take actions to either cancel loan or request
appropriate funding for the loan.
Oracle E-Business Suite Release 12.2 Release Value Proposition Reduce credit risk 36
15. What’s New in Oracle Payables?
Oracle Payables provides the integration and flexibility you need to efficiently manage
disbursements while keeping strong controls over matching, budgets, approval processes,
and payments. As a cornerstone to the Procure to Pay flow, Payables provides process
collaboration across departments within the enterprise and beyond to suppliers. Oracle
Payables assist users in meeting the demands of corporate governance, promotes fiscal
discipline, and meets complex and diverse statutory requirements.
In Release 12.2, Oracle Payables delivers benefits in these focus areas:
 Reduce risk and improve compliance
 Streamline and automate processing
15.1. Reduce risk and improve compliance

Regulatory compliance continues to be at the front-and-center of concerns for finance
professionals and corporate executives. Furthermore, businesses are feeling the pressure
to effectively leverage technology while better understanding and mitigating process
risks.
Oracle Payables enables companies to improve control over supplier invoices and
payments. To handle evolving business structures, Oracle's centralized and configurable
centralized accounting solution enables compliance with multiple legislative, industry or
geographic requirements concurrently for a single entity.
15.1.1. Greater Legal Context Visibility with Legal Entity and Improved
Transaction Processing
For organizations operating a shared services center responsible for processing

transactions for multiple legal entities, the ability to identify the correct legal entity for
transactions is critical to ensure accurate tax, currency and accounting treatment. Oracle
Payables in Release 12.2 captures transactional data within the context of the legal entity
owning this data, thus enabling better, more streamlined statutory compliance. Invoices
and payments indicate the operating unit and the legal entity owner of the transaction.
The legal entity can be used as selection criteria when preparing pay runs. Multi-Org
Access Control in Oracle Payables gives your SSC staff the ability to access and
process transactional data for multiple operating units from a single responsibility. By
leveraging MOAC in a shared services environment, companies can achieve significant
savings in operating costs without compromising data security.
15.1.2. Centralized Payment Processing
Many organizations are moving towards shared service centers and one of most common
processes to move to a shared service environment is payment processing. In Release
12.2, organizations can greatly increase processing efficiency of all payments through
the centralization of all payment activity with Oracle Payments. Separated from Oracle
Payables, Payments now manages all disbursements. While the payments themselves are
not paying invoices of different operating units or cross currency, one payment run can
be submitted for multiple currencies and operating units leaving less batches to manage.
Oracle E-Business Suite Release 12.2 Release Value Proposition Reduce risk and improve compliance 37
By adopting Oracle’s standard reporting submission process, pay runs can be scheduled
periodically or with a more flexible schedule.
15.1.3. Automated Netting of Customer and Supplier Balances

Considering today’s’ business dynamics, a vendor may also be a customer of the same
organization, thus evolving into a full trading partner. So, if you are both selling to and
procuring from the same trading partner, netting your mutual balances before making
payments is a common practice that allows all parties to save on transaction fees. You
are now able to determine whether you or your trading partner has a greater balance
outstanding and update your books, collect payments or make payments accordingly.
The matching of open receivables and open payables is automated and reduces
administrative and processing costs associated with making payments for invoices that
can be netted. This helps an organization manage its resources and relationships
effectively.
15.2. Streamline and automate processing

It is not uncommon these days for a corporation to deal with hundreds or thousands of
suppliers and funnel payments through dozens or even hundreds of bank accounts.
Managing a global supplier and bank account network can be a challenging task,
especially if it is centralized in a shared services center. Oracle E-Business Suite
Release 12.2 empowers payables managers with streamlined invoice processing and
improved supplier visibility and maintenance.
15.2.1. Easier and Faster Supplier Maintenance
Entering and periodically managing supplier information to ensure that it is accurate is

critical for organizations to reduce the risks associated with duplicate or incorrect
payments. In Release 12.2, the new user interface for supplier entry and maintenance
presents a clear distinction between the supplier’s company details and terms and
controls for the trading relationship. This user interface leverages Trading Community
Architecture to deliver these capabilities. Also, attributes specific to particular
functional areas such as Oracle Payables, Purchasing and Receiving can be controlled
with the use of Function Security while additional tax and legal registrations provide key
information to meet your reporting and compliance needs.
15.2.2. Simplified Setup of Supplier Bank Accounts
To streamline vendor management, bank Account setup is simplified with centralized

maintenance and security of the bank account information. Enhancements to the setup of
supplier bank accounts remove some processing restrictions and achieve greater control
and security. Bank accounts are modeled centrally and the bank account is tied directly
to the trading partner allowing one bank account definition to be leveraged by a
‘supplier’ trading partner and shared if the trading partner is also an employee or
customer.
15.2.3. Improved Invoice Processing with Invoice Lines
Verification of invoices and fast, controlled resolution of issues is a top priority for
Payables and Purchasing departments. The addition of invoice lines is a key
architectural change which offers the ability for line level workflow approval, matching
between an invoice line and a purchase order shipment or receipt, and deferred
Oracle E-Business Suite Release 12.2 Release Value Proposition Streamline and automate processing 38
accounting schedules. Furthermore, it facilitates the capture and transfer of additional,
pertinent information to and from Oracle Projects and Oracle Fixed Assets.
15.2.4. Streamlined Invoice Processing for Complex Services like Contract

Financing, Retainage, and Progress Terms
Managing and controlling services spend continues to be a topic of great interest and
importance to all sectors of the economy. These contracts tend to have high dollar
values, often running into several millions of dollars. They also tend to be long lead time
contracts, sometimes extending over multiple years. These contracts are characterized
by progress payments that are governed by the advanced payment terms, and which are
released based on completion of work. Additionally, complex work contracts can also
have provisions for Contract Financing making these difficult to manage and track.
In Release 12.2, Oracle Payables along with many other products has streamlined the
management of complex services projects. Complex payment terms and conditions for
fixed price contracts can now be captured during the procurement contract flow.
Automated calculations for prepayment recoupment and retainage take the complexity
out of invoicing against a complex work contract. Matching prepayments to approved
purchase order items add a level of control to prepayments that only invoices could
accomplish previously. Work Confirmations can result in self billed invoices reducing
work load. Retainage release is also managed with tight controls allowing only the
amount that was actually retained. Payables also provides extended support for planned
verses actual control for fixed priced, complex work contracts thereby reducing the risk
associated with these type of contracts.
15.2.5. Enhanced Invoice Approval with Line Level Approval
For an organization to operate effectively and efficiently, it is not only important to

streamline its business processes, but it’s also important to have all the checks and
balances in place to effectively control departments and spending. In Release12.2,
Payables has continued its focus on Sarbanes- Oxley requirements. Routing controls are
provided by Oracle Workflow and Approvals Management with user actions and
informative details delivered by Payables bringing to users an architected partnership for
defining policies in the application itself instead of on paper or spreadsheets.
With the introduction of Invoice Lines, users are able to further extend their approval
policy granularity in Oracle Approvals Management for individual lines of an invoice.
Notification details are targeted to the level of approval required and embedded with a
view of the invoice including summary amounts, essential line information, approver
sequence, and attachments. Approvers of invoices submitted without a purchase order
can enter accounting details as they approve. Employees that take part in the verification
and approval of invoices are better targeted based on line and invoice level information.
Policy configurations determine if matched invoices require further approval or not.
Approval notifications linked directly to interactive pages provide users with action
choices and a bountiful amount of information about the transaction.
15.2.6. Improved Non PO Invoice Processing
Considering today’s business environment, an organization needs to truly leverage its

partners. There is a need to create seamless integration of processes and resources, so
that both the partner and the organization can transform their businesses to compete
effectively with the competitors. One such capability is the ability of a vendor to enter
their invoices into the organization’s system via Self-Service Interface. Self Service
Entry reduces the cost of transaction processing and improves supplier satisfaction. Self
Service invoice entry has been extended to include transactions where a purchase order
has not been obtained upfront. Invoices entered by suppliers where a purchase order has
not been obtained are represented as Invoice Requests. Invoice requests are visible in
Oracle Payables but are not paid or accounted until the invoice can be verified and
approved.
15.2.7. Effective Collaboration with Suppliers through Oracle iSupplier Portal
The verification of invoices and fast, controlled resolution of issues is a top priority for
Payables and Purchasing departments. Strong internal processes, streamlined dispute
management, and supplier collaboration equate to timely payment of invoices and
improved trading partner relationships. In Release 12.2, designated users can negotiate
with suppliers when disputes arise. Negotiation actions are tracked and routing,
timeouts, and reminders managed by Workflow. This also enables payables clerical staff
to be utilized for tasks other than having to follow-up on approvals, proper costs centers
or resolve buyer/ supplier disputes. Suppliers are able to negotiate online via Oracle
iSupplier Portal. All changes and comments entered during the collaboration are tracked
in Payables and can be viewed at any time.
16. What’s New is Oracle Payments?
Oracle Payments provides a highly configurable and robust engine to disburse and
receive payments. Oracle Payments is a fundamental part of the Oracle Applications
architecture, and is provided with multiple products that require support for payment
processing. As the new central payment engine, Oracle Payments processes invoice
payments from Oracle Payables, bank account transfers from Oracle Cash Management,
and settlements against credit cards and bank accounts from Oracle Receivables. Oracle
Payments provides the infrastructure needed to connect these applications and others
with third party payment systems and financial institutions.
With Oracle Payments companies are able to efficiently centralize the payment process
across multiple organizations, currencies, and regions. Better working capital
management can be achieved by providing cash manager’s real-time visibility into cash
inflows and outflows. A full audit trail and control is supported through a single point of
payment administration.
In Release 12.2, Oracle Payments delivers benefits in these focus areas:
 Reduce cost
 Mitigate risk
 Streamline and automate processing
16.1. Reduce cost

Electronic payment processing provides many opportunities for cutting costs – from
upstream transaction validation to seamless bank communication. Oracle Payments in
Release 12.2 harnesses many of these benefits to make your payment process streamlined
and cost efficient.
16.1.1. Configurable Formatting Framework
An organization usually works with multiple vendors and multiple financial institutions
that accept payments in different payment formats, making it necessary to easily create
and maintain different payment formats. The new formatting framework in Release 12.2
along with the rich library of seeded formats will greatly lower the need for writing
customizations and reduce implementation costs to a fraction. Users can configure new
formats with minimal effort via familiar Word document-based templates without costly
external consulting help. Implementation team and functional end-users benefit from the
user-friendly, template-based approach to handle formats.
16.1.2. Reduced Costs with Flexible Validation Model
An organization may process several thousand payments during a payment cycle. An

erroneous transaction or a wrong payment instruction can result in delayed payments as
well as additional charges or fees to reprocess the same payment. The flexible
validation model in Release 12.2 allows users to achieve greater control through up-
front validations on documents that need to be paid, thereby improving their straight
through processing rates and reducing costly errors as well as manual interventions.
16.1.3. End to End Process Automation
Business processes that require a lot of manual intervention are not only prone to errors
but also increase operating costs. Oracle Payments supports end-to-end electronic
payment processing that includes validation, aggregation, formatting and secure
transmission of payments resulting in high straight through processing rates. High
straight through processing (STP) rates helps lower costs associated with the
disbursement process. In Release 12.2, check printing has been enhanced to make the
initiation of printing, recovery from printing errors, and recording of print results simple
and intuitive.
16.1.4. Easier Reconciliation of Funds Capture Transactions
Reconciliation of funds capture transactions is a necessary but time consuming process

for most organizations. The new dashboard approach to monitoring the funds capture
process in Release 12.2 provides significant productivity enhancements by making it
easier to reconcile funds capture transactions (such as credit card payments) Shared
service centers and payment administrators can use the new dashboards to effectively
manage the payment process across multiple organizations and reduce administrative
costs.
16.2. Mitigate risk

Without proper controls in place, the funds disbursement process can become a hotbed
for fraud and misappropriation. Oracle Payments in Release 12.2 allows you to
implement secure and efficient payment process with increased visibility.
16.2.1. Improved Visibility with Payment Dashboards
Top priority of CFOs and Treasurers is to keep their firm liquid and optimize their
working capital; Oracle Payments provides the visibility to make this possible via the
Funds Capture and Funds Disbursements dashboards to monitor the payment and
receipt process. Users can achieve better working capital management with real-time
visibility into cash inflows and outflows and have a full audit trail and control through
single point of administration.
16.2.2. Secure Payment Data Repository
Security of sensitive payment data including bank account numbers and credit card
information is critical for organizations. The single payments repository provided by
Oracle Payments stores all this information in a central place which allows better control
and encryption capabilities.
16.2.3. Efficient Disbursement Process
Reducing the administrative burden of making payments and achieving payment

processing efficiencies is key to optimal performance for Payments department In
Release 12.2, payables managers can simplify their processes by submitting fewer
invoice selection batches, each one spanning multiple payment formats, bank accounts,
and payment currencies while payment administrators can lower the cost of the
disbursement process by creating check runs and EFT payment files that span multiple
invoice selection batches and multiple organizations.
Oracle E-Business Suite Release 12.2 Release Value Proposition Mitigate risk 42
16.2.4. Operational Risk Management with Improved Credit Card Security
In the present business environment, Credit Card Payments have become more prevalent
as instruments for a financial transaction. It is therefore increasingly important that
customers and organizations be able to protect themselves against risks due to identity
thefts and frauds. This risk is reduced by consistent implementation of credit card
security functions throughout the funds capture process.
16.3. Streamline and automate processing

Depending on your industry, it is not uncommon for a corporation to process hundreds or
thousands of payments per day. Organization are moving closer to centralized shared
services to manage these large volumes of transactions. Oracle E-Business Suite Release
12.2 empowers your payment managers with flexible setup, centralized payment engine
and tools aimed to support customer satisfaction during funds capture process. Similar
improvements in funds disbursement process improve vendor relationships.
16.3.1. Improved Customer Service with Support for Additional Payment Options
In order to improve overall customer satisfaction, an organization needs to offer options

that increase customer flexibility. Support for additional payment instruments like PIN-
less debit cards provides allows organizations to offer more payment choices to their
customers thereby improving customer satisfaction.
16.3.2. Improved Customer Satisfaction with Notification Functionality

Organizations are under constant pressure to manage their customer base effectively and
constantly improve their level of satisfaction. This can be attained, if an organization
operates in a transparent manner and customers stay informed of their standing with the
organization. The ability to notify payers like customers via a notification letter
whenever a customer’s bank account is debited for a payment helps improve customer
satisfaction.
17. What’s New in Oracle Property Manager
Oracle Property Manager streamlines and automates lease administration and space
management, enabling you to more intelligently manage your real estate portfolio.
Whether you are a corporate, commercial, or retail/franchise operation, Oracle Property
Manager offers a comprehensive solution for reducing costs and identifying new revenue
opportunities, minimizing contractual and financial risk, and providing data transparency
that helps maximize the value of your real estate.
In Release 12.2, Oracle Property Manager delivers benefits in the following key areas:
 Reduced administrative overhead of tracking occupancy
 Improved variable rent calculation
 Reduced complexity of index based rent adjustments
 Ability to manage complex operating expenses
17.1. Reduced administrative overhead of tracking occupancy

To better abstract and manage critical lease information and other critical contractual
information we have revisited this area.
17.1.1. Streamlined Financial Operations
Reentering lease calculation information increases the potential for user error. With the
introduction of tenancy extension and contraction automatic update, the
cumbersome process, of reentering lease calculation information has been eliminated.
Organizations desire to continue improving the efficiency of payment and billing

processes and reduce the amount of errors in their financial operations. One particular
area that was troublesome in prior releases Property Manager related to changes made to
a lease schedule. Previously, Oracle Property Manager could create only one schedule
for a lease for a date, which meant that once you had approved a schedule for a particular
date, you could not create any new items for that date. Now, with schedules for same
schedule day, new draft schedules are created when it is necessary because of approved
schedules.
17.1.2. Effectively manage occupancy
A much more efficient and accurate process to manage occupancy has been introduced in
Release 12.2. With the many different possible tenancy agreements, terms and extensions
it became apparent that additional choices and functionality was required to enable far
less customer intervention, and creative workarounds when creating or altering
associated terms, tenancies, and agreements.
Better handling of occupancy has been addressed with such enhancements as new lease
statuses which enable you to generate deposit payments or bills before finalizing the
lease. New lease statuses lease extension options enabling you to choose whether
you want terms and tenancies extended when you extend the lease. Second, you can
choose to have variable rent and rent increase agreements extended automatically. And
third, Property Managers now manage the extension of normalized terms when they put a
lease in month-to-month or holdover status then later return it to active status.
Oracle E-Business Suite Release 12.2 Release Value Proposition Reduced administrative overhead of tracking occupancy 44
17.2. Improved variable rent calculation
The variable rent calculation has been revisited (enhanced and streamlined) with the
intent to make you better equipped to automatically calculate rent based on sales volume
while supporting industry practices of deductions from sales, banded breakpoints, caps,
floors, ceilings, and netting of other rent related items. Allowing the generation of
payments and billings based on user-defined volume data.
17.2.1. Streamlined variable rent calculation process
Breakpoint handling had been a significant inconvenience and source of potential error,
often requiring cumbersome workarounds. Since it is common in leases to have
breakpoint definitions change over time and not necessarily at the start of a year,
customers have requested greater flexibility to reduce the current cumbersome
workarounds. Increased breakpoint flexibility with breakpoint definitions extending
beyond one year has been introduced in Release 12.2.
The ability to directly change existing volumes saves substantial efforts and reduces
errors. An efficient process for entering revised sales volumes has been provided. As a
user you are no longer required to enter the revised amounts by adjustments. You can
populate the descriptive fields for one or more Line Items saves time and reduces error.
Every field on the agreements tab can now be automatically filled in with default values
from the selected variable rent template.
17.2.2. Added flexibility to variable rent calculation

Keeping your agreements current and accurate and having the flexibility to support a
wide variety of additional industry practices is key with variable rent calculations.
Customers have had to abandon an agreement and create a new replacement agreement
because they were not able to make needed changes due to aspects of the variable rent
calculation functionality not being flexible enough. With improvements to areas such as
natural breakpoints, early termination of rent increase agreements, month-to-
month roll forward of variable rent agreements and updates to allowances and
abatements now, you can amend agreements or correct setup mistakes even for periods
for which terms have been approved. You can make these changes effective
retroactively if necessary.
17.2.3. Broaden the variable rent calculation fundamentals
After further research with customers and understanding their business scenarios, we
determined that additional flexibility was needed with the cumulative calculation method
to support variable rent calculations. In Release 12.2, the cumulative calculation
method now supports:
 Restarting the accumulation process for breakpoints and sales when there was a
change in rate.
 Prorating sales to match any prorating of breakpoints.
 Matching sales against stratified breakpoints in the manner desired.
17.2.4. Usability improvements
The ability to see the total picture on one view as well as get a comprehensive view of all
parts of the variable rent calculation is critical with the complex nature of this process.
Since the variable rent calculation is inherently complex, especially depending on the
terms of a lease, Oracle Property Manager in Release 12.2 now shows all steps in the
Oracle E-Business Suite Release 12.2 Release Value Proposition Improved variable rent calculation 45
calculation in a form that is logical, allowing you to understand and confirm every step
of the process. The improved display and navigation will help you will find your way
around the variable rent screens more easily and because information is consolidated on
a much smaller number of windows you can now navigate to the information you need to
see more quickly.
17.3. Reduced complexity of index based rent adjustments

Index based rent adjustments are very complex, Oracle Property Manager aims to
simplify and apply structure to this complexity; enabling you to automatically assess and
generate the appropriate index based rent adjustments based on fluctuations of various
indices. We have added new functionality in this area aimed at providing better
accuracy, more flexibility on your approach to the calculation and provide automation
where possible to remove the chance of human error and speed up the process.
17.3.1. Ability to early terminate a rent increase agreement
Cumbersome workarounds had to be adopted to early terminate a rent increase
agreement, Oracle Property Manager in Release 12.2 enables you to early terminate a
rent increase agreement to any date, regardless of whether terms have been approved or
not. You can also extend agreements.
17.3.2. Streamline Process
In an effort to better handle and process adjustments (currently seen as a slow manual
process), accurately and effectively (removing the chance of human error and speed up
the process) we have made a number of process changes, examples being: you can roll
forward leases in month-to-month status automatically by means of a new batch
concurrent process. Oracle Property Manager now provides support for rent increase
agreements under which rent is to increase by some multiple of the actual index change
amount.
17.3.3. Improved handling of back bills
One-time back bills create spikes in the basis for natural breakpoints resulting in
incorrect variable rent calculations. With Oracle Property Manager in Release 12.2 two
new options address this. T he single term option has additional advantages of reducing
the number of terms on the lease and simplifying transactions.
17.3.4. Comprehensive Reporting
Due to the complexity of index based rent adjustments and the value of reports in this
area. Multiple RXi reports have been created; these reports are highly configurable, so
that you can tailor the reports to your needs and highlight all pertinent information.
17.4. Ability to manage complex operating expenses

The Operating Expenses module is a complete solution for tenants managing operating
expense agreements, own charges, and in validating the accuracy of these charges;
functionality identified as very useful, and a perspective not provided prior to this
release. Managing operating expense, or CAM, charges is very important to retailers.
These charges frequently make up a large amount of their total rent. Retail landlords
generally attempt to recovery 100% of common area expenses from tenants, keeping
base rent relatively low. Operating Expense charges are common on office leases as
well.
Oracle E-Business Suite Release 12.2 Release Value Proposition Reduced complexity of index based rent adjustments 46
17.4.1. Capture agreements in a structured way
It’s important to provide a consistent way to capture, refer to, and compare information
about agreements and terms across a portfolio from a tenant perspective, keeping an
active log and up-to-date record of all agreements. The new Operating Expense
Agreement functionality in Oracle Property Manager in Release 12.2 provides a place
for you to capture all of your Operating Expense or CAM agreements in a structured
way.
17.4.2. Easy Reconciliation
Many types of errors can occur with landlord calculations and result in over-charges,
often these charges are hard to prove and time consuming to validate. Oracle Property
Manager in Release 12.2 will help you to recreate the landlord’s reconciliation statement
with a minimum amount of data entry. The Oracle Property Manager reconciliation
provides an excellent workbench for what is sometimes called a ‘desktop audit’.
To facilitate your analysis, catch errors, and provide an effective way for you to
communicate issues back to the landlord you can see your statement and expected values
in a side-by-side layout. To preserve a history of the analysis and any disagreements and
provide a view of how much money has been saved by your audit efforts with the
landlord you can save multiple revisions of the same reconciliation.
Oracle E-Business Suite Release 12.2 Release Value Proposition Ability to manage complex operating expenses 47
18. What’s New in Oracle Receivables?
Oracle Receivables is an invoicing, payment, deduction, and revenue management
application that streamlines your order-to-cash process while providing strong financial
controls and strategic financial information.
In Release 12.2, Oracle Receivables delivers benefits in these focus areas:
 Mitigate risk and enforce compliance
 Improve customer bill presentment
18.1. Mitigate risk and enforce compliance

Quite a few accounting scandals of recent years revolved around improper or overly
aggressive revenue recognition policies. It comes as no surprise that this area of
financial reporting is under constant scrutiny. New features in Oracle Receivables help
you comply with the revenue recognition requirements in an efficient manner.
18.1.1. Flexible Revenue Recognition Rules, Including Partial Period Revenue

Recognition
Various accounting standards such as U.S. GAAP and International Accounting

Standards mandate that companies need to adhere to strict revenue recognition
requirements, which require flexible revenue policies to be implemented dependent on
the terms and conditions in a sales contract or sales order. Revenue recognition in
Oracle Receivables Release 12.2 has been enhanced to provide greater flexibility in
defining revenue recognition schedules and configurable accounting rules for treatment
of revenue allocations for partial periods. In addition, event-based revenue
management allows users to define revenue deferral reasons and defer revenue to an
unearned revenue account until a certain event occurs.
18.1.2. COGS and Revenue Matching
Generally accepted accounting principles mandate that a company's statement of

financial earnings must take revenue recognition and cost matching principles into
account. The matching principle of accounting states that each expense item related to
revenue earned must be recorded in the same accounting period as the revenue it helped
to earn. COGS and Revenue Matching satisfies this matching principle by synchronizing
the recognition of revenue with the recognition of associated COGS. For example, if
revenue is partially recognized, the corresponding COGS are proportionately recognized.
18.1.3. Reduced Risk with Payment Based Revenue Recognition
With the changing regulatory environment, companies are turning to payment based
revenue recognition as the answer to meeting strict revenue recognition rules for specific
business transactions. The enhanced Event-Based Revenue Management achieves
payment based revenue recognition by associating transaction lines with revenue
impacting contingencies. Revenue for impaired loans, evergreen-leasing agreements,
and various miscellaneous fees can now be automatically deferred at first and, then,
Oracle E-Business Suite Release 12.2 Release Value Proposition Mitigate risk and enforce compliance 48
recognized when customers pay. You are able to take a cautious approach to revenue
recognition thus reducing your overall risk.
18.1.4. Quick Resolution of Credit Card Payment Errors
Minimize risk by quickly rectifying errors with your receivables. The new Credit Card
Error Handling feature in Oracle Receivables Release 12.2 provides a quick and
efficient method to handle credit card errors that occur during payment authorization and
capture.
18.1.5. Regulatory Compliance with E-Business Tax Solution
Many companies operating globally must be able to process invoices with the
appropriate tax according to the local rules of the countries in which they operate. There
is therefore a need for a fully flexible tax solution to enable companies to easily define
tax rules that can be automatically calculated and applied to the transactions as
appropriate. Oracle E-Business Tax provides a centralized tax engine with very flexible
and configurable rules to enable you to address varied requirements across the globe.
The tax engine is fully integrated with Oracle Receivables, which means that item lines
automatically generate one or more tax lines depending on the tax setup you defined.

Receivables departments can easily get avalanched by routine tasks as the sales and
revenue grow. Streamlining repetitive and non-value adding activities such as
chargeback reconciliation can help your receivable department keep tabs on processing
costs no matter the scale of your business. Oracle E-Business Suite Release 12.2
provides a number of features to increase your processing efficiencies with streamlined
and automated processes.
18.2.1. Granular Cash Application at the Invoice Line Level
When a customer disputes the invoiced amount and remits only a partial payment, it may
be challenging to resolve the issue and collect the money if cash specialists cannot easily
identify which lines have been paid and which have not. Line Level Cash Application
allows the application of receipts to specific transaction items such as individual lines,
groups of lines, or tax or freight buckets. This enables increased efficiency when
interacting with the customer, as you will know specifically which items you've not yet
received payment for, aiding your discussion when following up with the customer.
18.2.2. Streamlined Funds Capture Processing through Centralized Payment Engine
Timeliness is critical when it comes to processing revenue. Seamless integration

provides better real-time payment processing status information to Receivables users.
Oracle Receivables leverages funds processing in Oracle Payments, including the new
customer bank accounts model, to support the automated, electronic funds capture via
Credit Cards, ACH, and bank-to-bank transfers. Oracle Payments stores and handles all
payment related information for automatic payment processing.
18.2.3. Improved Chargeback Reconciliation
Cardholders can dispute credit card charges with their card-issuing bank and, when they
do, the merchant’s account is ‘charged back’ by the card's issuing bank. The new feature
allows you to reconcile balances accurately by recording credit card chargebacks in
the Receivables system as a specific activity against a receipt.
18.3. Improve customer bill presentment

Oracle Bill Presentment Architecture (BPA) allows you to retrieve billing data from
multiple data sources for presentment on a bill. This means that the physically presented
bill is no longer limited to information contained within Oracle Receivables. By
separating bill presentment from transaction accounting, Oracle BPA allows for more
understandable and comprehensive bills, increasing the likelihood and timeliness of bill
payment.
18.3.1. Improved Customer Communication with Attachment Printing
Making sure your promotional messages reach your customers can be a daunting task.
Everybody reads their bills though. The new feature allows automatically printing any
PDF document (new product announcements, special event notifications, etc.) together
with the printed bill. This enables greater efficiency and also improves customer
satisfaction by providing this supplementary information.
Oracle E-Business Suite Release 12.2 Release Value Proposition Improve customer bill presentment 50
19. What is Oracle Subledger Accounting?
Oracle Subledger Accounting introduced in Release 12 enables corporations to comply
with corporate, local and managerial accounting and audit requirements via increased
control, visibility and efficiency. Oracle Subledger Accounting increases control by
storing a complete and balanced journal entry for each subledger transaction and GL
date. Detailed drilldown and audit information is captured for each journal entry line.
Oracle Subledger Accounting streamlines the close by providing a common accounting

engine, so that all Oracle products and non-Oracle products can transfer controlled and
summarized data to the General Ledger using a standard methodology and auditable,
reviewable process.
Oracle Subledger Accounting increases management visibility by supporting multiple

parallel accounting representations. Corporate accounting policies can be defined and
implemented globally; free from limitations imposed by local fiscal reporting
requirements. Oracle Subledger Accounting allows accounting policies to be created
once and deployed many times.
Oracle Subledger Accounting also enables business users to control all aspects of journal
entry layout including debits and credits, accounting flexfields, descriptions and GL date.
This is paramount for compliance if local statutory requirements stipulate that each
accounting line must show a detailed business event description.
In Release 12.2, Oracle Subledger Accounting allows users to:
 Meet diverse global accounting and tax requirements
 Centralize accounting policies for greater control, transparency and auditability
19.1. Meet diverse global accounting and tax requirements

A global economy opens new markets for your products and services but it also exposes
you to the regulatory and legislative requirements of the foreign countries. Accounting
practices differ in various parts of the world and Oracle E-Business Suite Release 12.2
helps you comply with various local accounting requirements, while also supporting your
home country books.
19.1.1. Simultaneous Compliance with Multiple Accounting Requirements
With the movement towards standardizing on global accounting and financial reporting
standards, organization are often in a situation where they need to produce accounting
according to their current accounting standards, as well as, produce their financial
reporting according to IFRS/IAS. Oracle Subledger Accounting (SLA) in Release 12.2
enables corporations to comply with corporate and local accounting and financial
reporting requirements simultaneously. When creating multiple accounting
representations of the same transaction, Oracle Subledger Accounting ensures that all
journals are complete and valid before they may be posted, which minimizes
reconciliation issues.
Oracle E-Business Suite Release 12.2 Release Value Proposition Meet diverse global accounting and tax requirements 51
19.1.2. Increased Flexibility with Configurable Accounting Rules
In order to achieve a competitive advantage, companies must continue to lower the cost
of doing business. One way that many companies are making this happen is by
standardizing and centralizing administrative processes and accounting automation.
When an organization standardizes its accounting policies, it needs to document the
policy, communicate it to those who must apply it, and ensure the standard policy is
enforced – not always an easy task. In Release 12.2, Subledger Accounting provides you
with the ability to control and enforce your standard accounting practices and also gives
you the flexibility to handle the exceptions and define additional sets of accounting rules
where needed. Subledger Accounting offers maximum flexibility for generating
accounting entries by making it possible for the user to configure accounting rules based
on a number of attributes of a transaction.
19.1.3. Enhanced Reporting Currency Functionality
Multiple Reporting Currencies functionality is enhanced to support all journal sources.

Reporting sets of books are now known simply as reporting currencies. Every journal
that is posted in the primary currency of a ledger can be automatically converted into one
or more reporting currencies. This conversion can be performed by Oracle Subledger
Accounting, to convert all subledger journal entries, or by Oracle General Ledger, to
convert more summarized General Ledger journals. You can choose to convert any
journal source and category.
19.2. Centralize accounting policies for greater control, transparency and

auditability
Complex organizational structures and business operations can translate into complex,
cumbersome to maintain. Oracle Subledger Accounting centralizes many setup areas so
that you can efficiently manage them and have better visibility.
19.2.1. Summarized Information for Streamlined General Ledger without Sacrificing

Details
Most enterprises store only summary level data in their General Ledger to keep it
streamlined and ensure good performance for system processes. The downside of
maintaining only summary level data in the General Ledger becomes apparent when you
need to see the detail behind the accounting balances. You need to go back to each
individual source system or application that affected the general ledger account balance
to get the information you want. This can be a tedious and time-consuming task.
In Release 12, Subledger Accounting provides your organization with the best of both
worlds. By maintaining the detailed accounting for subledger transactions in the new
subledger accounting architecture and providing summary options for transfer of
accounting journals to the General Ledger, means the General Ledger will not be
burdened with granular detail. The seamless integration between General Ledger and
Subledger Accounting ensures that you’re able to easily analyze the summarized
balances in General Ledger through integrated drill-down to subledger accounting
journals and all the way to the subledger transactions for full visibility of data.
Oracle E-Business Suite Release 12.2 Release Value Proposition Centralize accounting policies for greater control, transparency and auditability 52
19.2.2. Draft Accounting for Previewing Accounting Impact
Enterprises wish to minimize accounting errors resulting from last minute adjustment
transactions, manual adjustments to correct errors or for businesses operating in certain
European countries where reversing a journal with an error in accounting is viewed
negatively. Oracle Subledger Accounting allows you to preview the subledger
accounting journal with the exact GL accounts that would be impacted by the transaction
before you actually post it. Draft or preview accounting, simplifies accounting for
business transactions in subledger applications. It also gives an organization the ability
to modify accounting and test the results of an accounting policy change before
deploying the change across multiple ledgers or multiple parts of the business, reducing
risks of inaccurate fiscal reporting.
19.2.3. Increased Productivity with Automatic Replacement for Disabled Accounts
Subledger Accounting in conjunction with Oracle General Ledger has introduced the
ability for users to specify a replacement account for any account combination that has
been disabled. When an account is disabled, users can continue creating accounting for
transactions that include the account, without errors. Oracle Subledger Accounting
replaces the disabled account with the replacement account and continues processing.
This improves processing efficiency by enabling the successful creation of journal
entries with minimal user intervention if an account has been disabled and minimizes any
fallout during the closing process. Oracle Subledger Accounting also stores substituted
disabled accounts on subledger journal lines for audit and reconciliation purposes.
19.2.4. Gapless Sequential Numbering for Audit and Global Legal Compliance
For global organizations, Oracle Subledger Accounting provides the capability to track
transactions within the financial application with unique sequential numbering. This
proves vital for analysis, drill-down and audit capabilities as well as enables fulfillment
of legal reporting requirements.
19.2.5. Best Practices for Intermediary Account Processing
Given the variety of ways to "manage your business", Oracle Subledger Accounting
offers support for varying business flows by formalizing the generation of global
accounting entries into centralized accounting rules. By allowing business users to
create accounting definitions that handle cases where there is a logical relationship for
two or more transactions for intermediary accounts, greater controls across the enterprise
are enabled.
Users can create accounting policies based upon user specified product business flows.
This allows accounting definitions to explicitly handle cases where there is a logical
relationship between accounting for two or more transactions facilitating reconciliation
for intermediary accounts. Enforcement of the accounting rules is automatically
achieved when SLA creates the accounting entries for all subledger transactions using
the rules that have been defined.
Managing accounting generation using business flows in Subledger Accounting is

illustrated with the following two examples:
• When creating the accounting for a payment, you can indicate that the account
used to book the invoice liability, through the invoice transaction, should be
relieved
Oracle E-Business Suite Release 12.2 Release Value Proposition Centralize accounting policies for greater control, transparency and auditability 53
• When accounting for a Payables invoice matched to a purchase order, you can
indicate that the expense account for the Payables invoice be derived from the
purchase order
19.2.6. Reduced Cost and Unparallel Visibility with a Single Global Accounting
Repository
Oracle Financials Accounting Hub enables you to centralize accounting data from any
third party transactional system. Together, they offer an open repository and a
centralized accounting engine for transactional data from any third party source.

Accounting departments can easily get avalanched by routine tasks as the business
grows. Automating repetitive and non-value adding activities such as multi-period
accounting and accrual reversals can help your accounting department stay nimble and
adjust to the scale of your business environment. Oracle E-Business Suite Release 12.2
provides a number of features to increase your processing efficiencies with streamlined
and automated processes.
19.3.1. Reduced Period End Closing Time with Straight through Accounting
Processing
Straight through processing allows real-time, single step posting to all relevant ledgers
(primary, secondary and reporting ledgers). This allows users to create subledger
accounting entries, transfer and post the GL accounting in a single step. When creating
journal entries either online or offline by the concurrent program, users can choose to
immediately transfer and post the accounting in General Ledger.
19.3.2. Simplified Customer and Supplier Balance Reconciliation
Keeping payables and receivables balances reconciled to General Ledger is often

challenging for most organizations. Oracle Subledger Accounting stores balances for
control accounts by customer and supplier, using a new key accounting flexfield qualifier
that allows users to specify control accounts. General Ledger prevents the entry of
manual journal entry lines for control accounts thus ensuring that subledger control
account balances are consistent with General Ledger balances for the same account
combination. To calculate the balances, Subledger Accounting uses the customer and
supplier information it stores on journal entry lines so users can complete inquiries based
upon the customer and supplier information. Reports are available that detail, by third
party, the journal lines that are used to create the balance for each third party control
account.
19.3.3. Support for Automated Multi-Period Accounting
Oracle Subledger Accounting supports multi-period accounting enabling users to create

accrual and recognition journal entries to allocate costs over a range of accounting
periods. Users can also configure the GL dates, a prorating method, and have the ability
to create a single recognition journal based upon the multi-period end date. This
recurring entry allocates the costs according to these definitions and streamlines the
entire process. Automated Accrual Reversal Accounting
Depending on your business practices, you may need to intermediately reverse accrual
journal entries. Oracle Subledger Accounting allows you to define if an accrual journal
entry needs to be automatically reversed ether next day or next accounting period. It is
possible to drill to the related reversal when viewing an accrual journal entry and vice
versa.
19.3.4. Automatic Foreign Currency Gain/Loss Calculations
Ensuring accuracy of foreign currency gain/loss calculations is critical for global

organizations. By automating the capture of foreign currency gains/losses and the
creation of accounting entries in the ledger currency due to foreign currency fluctuations
customers will substantially increase the efficiencies of this processing. In Oracle
Subledger Accounting, the gain/loss amounts are calculated and reported to the
appropriate accounts using company defined business rules. Oracle Subledger
Accounting can use conversion information such as the conversion rate, entered amount
and currency information to calculate accounted and gain/loss amounts.
19.3.5. Quicker Upgrades and Implementations with Application Accounting

Definitions Loader
When implementing ERP systems enterprises want to be able to export setup defined in a
test environment to other test environments and the production environment to save time
and increase efficiency.
The Application Accounting Definitions (AAD) Loader enables customers to import and
export application accounting definitions and journal entry setups. Users can build and
test their journal entry setups on a test instance, export them, and then import them to
their production instance. The AAD Loader also supports concurrent development and
version control of the application accounting definitions.
19.3.6. Flexible Standard Reporting
Most enterprises have a large number of customized reports to address various business
needs of their end users, and the maintenance of such customized reports often require
specialist IT developer skills.
Oracle Subledger Accounting reports are built to allow end users such as your business
analysts or accountants to take full advantage of Oracle BI Publisher. The combination
of BI Publisher and Oracle Subledger Accounting allows end-users to easily create
reports by copying existing report templates and modifying them using MS Word or
Adobe Acrobat to match their specific business requirements, eliminating expensive
report customizations. The business users can take charge and get the results that they
need with the assurance that Oracle security will only give these users visibility to the
data within their responsibility.
19.3.7. Improved Reporting and Analysis with Supporting References
Enterprises are always looking for ways to improve performance. Sometimes the chart
of accounts isn’t sufficient to help with performance analysis. Other business
dimensions, such as geography, sales channel, industry, product category, which are not
stored in the chart of accounts but could be important key business drivers for an
enterprise. Supporting references in Subledger Accounting enables you to store key
business dimensions with your subledger accounting journals and to track and generate
analytical balances in Subledger Accounting by supporting reference, to provide better
information to help you drive your business performance. . Subledger Accounting
maintains subledger balances for a GL account, GL period and supporting reference.
20. What’s New in Oracle Treasury?
Oracle Treasury is a complete solution for managing global treasury operations with
improved efficiency, profitability, and control.
In Release 12.2, Oracle Treasury delivers benefits in these focus areas:
 Manage operational risk

When armed with the latest features delivered in Oracle E-Business Suite, your treasury
department will be able to automate routine tasks, thus saving time and allowing the
focus to shift to more value adding activities.
20.1.1. Automated Cash Pooling Across Legal Entities
You know how to optimize your cash across the enterprise and you have already
implemented a Zero Balance Account structure or a cash pool. But have you also
discovered that, while your cash flows freely, your accounting department is suddenly
swamped by the number of the intercompany loan transactions they have to post
manually in order to reflect those cash concentration activities? With the Cash Pooling
across Legal Entities, you can now have the best of both worlds: automatic cash
concentration and automatic intercompany loan tracking. The system now automatically
recognizes a cash sweep that crosses legal entities and adds it to the intercompany loan,
which in turn automatically produces accurate and timely journal entries for both legal
entities.
20.1.2. Hedge Effectiveness Testing under FAS 133 and IAS 39 Accounting
Standards
You want to make sure that your hedges get the preferential accounting treatment under
FAS 133 and IAS 39 rather than introduce unnecessary volatility to your income
statement. But does it mean that you have a time-consuming spreadsheet on your hands
that has the entire audit department frown on you? The new feature allows you to track
prospective and retrospective effectiveness test results in the system, where they are
subject to the same strict security rules as the rest of your sensitive financial data.
Moreover, the system can now automatically calculate the retrospective effectiveness
hedge results using the dollar offset methodology, as well as account for it all the way,
including reclassification.
20.1.3. Automatic Floating Rate Reset for Bonds
Having current rates in the system for your entire bond portfolio at all times ensures
correct coupon accruals and cash flows. Manual rate updates is inefficient and error-
prone. Concurrent processing automates this task by accessing benchmark rates you feed
into the system and then automatically updates the relevant coupon rates and amounts.
The new concurrent program in Release 12.2 provides the ability to automatically reset
floating rates for bonds based on benchmark rates like LIBOR as well as margin
adjustments assigned at the bond issue level.
20.2. Manage operational risk
Treasurers live and breathe the three major financial risks: foreign exchange, interest rate
and commodity. But it is the fourth type of risk – operational risk – that, if left
unattended, can wreak havoc in the most financially savvy organization. Oracle E-
Business suite empowers your treasury department with the tools to keep your operations
running smoothly.
20.2.1. Automatic Bank Account Update for Redirecting Payments to a New

Bank Account
Your bank account landscape can change over time as you rationalize your banking
relationships or have to absorb the effects of mergers and spin-offs. Your financial
counterparts go through a similar process and then you receive "new bank account
notification" letters. Do you know if all the future payments scheduled in the system will
go though the right bank accounts or will you have to incur late payment fees as a result
of trying to remit funds to a closed bank account? The new concurrent program allows
you to take action in order to prevent an embarrassing and potentially costly mistake. As
soon as you become aware of the bank account closure, execute this concurrent program
to indicate what bank account should be used instead of the closed one and all the future
payments (and receipts) will be automatically updated with the new bank account
information.
Oracle E-Business Suite Release 12.2 Release Value Proposition Manage operational risk 57
21. Global Enhancements
Oracle provides expanded support in Release 12.2 for country-specific business
requirements across all regions. These requirements span a wide range of categories,
including: financial reporting, tax reporting, asset accounting, and many others. The new
set of enhancements will help you compete globally while successfully complying with
the local regulatory requirements.
The following section highlights the business benefits for some of the key local business
requirements addressed in Release 12.2. The capabilities within each country will be
categorized by business process/solution. For a complete listing of product capabilities
delivered via product localizations please refer to Oracle’s User Guides.
In Release 12.2, Global Enhancements were delivered for the following countries:
 China
 India
 Japan
21.1. China
21.1.1. Financial Control and Reporting
21.1.1.1. China National Audit Office – Interface Standard

China National Audit Office (CNAO) is the organization that is in charge of defining an
accounting data interface standard for China. This CNAO Release 12.2 localization
provides the functionality to export the data files requested by CNAO and also the
commonly requested cash flow statement solution. The localization provides Financial
Data Export and Cash Flow Statement functionality to enable compliance with the
requirement of the national standard.
21.1.2. Transaction Tax
21.1.2.1. Golden Tax Adaptor for China

Golden Tax is one of the Golden Projects initiated by the Chinese government to
modernize the country's information technology. The Golden Tax project refers to an
integrated nationwide value-added tax (VAT) monitoring system and was launched in a
bid to establish a national computerized taxation network to eliminate tax evasion by the
business establishments. Under this Golden Tax project, all businesses operating in
Mainland China are required to use a government certified tax software referred to as the
Golden Tax software for generating VAT invoices, VAT calculation, and statutory tax
reporting.
Oracle's Golden Tax Adaptor provides these benefits:
 Provides a seamless integration between Oracle Receivables and the Golden Tax
software system, and thereby streamlines the process of creating VAT invoices
against Oracle Receivables documents.
Oracle E-Business Suite Release 12.2 Release Value Proposition China 58

 Ensures data consistency between Oracle Receivables and the Golden Tax
software system.
 Golden Tax Adaptor enables companies to interface their invoices, credit memos
and debit memos from Oracle Receivables to the Aisino Golden tax software in
order to calculate VAT, generate and print VAT invoices and report tax to the
Chinese Tax authorities in an almost seamless fashion.
21.2. India
Oracle Financials introduces new localization capabilities for India which will help
companies perform their business activities with more efficiency and accuracy.
21.2.1. Transaction Tax
21.2.1.1. Support for Tax Collected At Source

The scope of India Localizations extended in Release 12.2 supports the compliance
requirements prescribed under TCS (Tax Collected at Source) which is administered
under the Income Tax regime.
21.2.1.2. Provision for Computing Additional CVD under Customs Regime

Additional CVD is a new tax introduced under the Customs regime. This feature would
benefit customers in computing the additional CVD component while processing the Bill
of entry
21.2.1.3. Provision for Computing Higher Education Cess for all Federal Taxes
Higher education cess is a new federal tax applicable on federal taxes like central excise,
service tax, customs, TDS, and TCS FBT. Enhancement to support higher education
cess facilitates to comply with the regulatory requirements for assessing, accounting and
reporting higher education cess.
21.2.1.4. Support of Fringe Benefit Tax

Compute Fringe Benefit tax as a used tax on specified transactions from AP, enabling
companies to comply with the regulatory requirement under Income Tax regime.
21.2.1.5. Transaction Sources

India Localization capabilities to compute taxes and call for tax service are extended to
transactions from the following sources and types:
 iSupplier
 iProcurement
 Inter-organization transfers
 Project Billing
 Project Costing
Oracle E-Business Suite Release 12.2 Release Value Proposition India 59

 Standalone AP Invoices
 PO Retroactive Price Changes
21.3. Japan
21.3.1. Asset Lifecycle Management
21.3.1.1. Tax Reforms

The Ministry of Finance in Japan introduced the Tax Reforms for New Tax Depreciation
Rule on the 1st of April 2007. The purpose of this legislation is to establish basis for
growth of Japanese economy by fundamentally revising the Fixed Assets’ depreciation
system.
This feature allows users to compute Fringe Benefit tax as a used tax on specified
 Calculate additional unplanned depreciation, which is termed as Special

Depreciation. This feature helps Japanese users reduce manual maintenance
associated with calculation of additional unplanned depreciation.
 Analyze depreciation data from various kinds of aspects and use these data more
strategically.
 Reduce risk for error by supporting process to view, correct and confirm detailed
asset information and before importing it in Oracle Assets.
 Ensure better asset management with detailed asset data such as number,
depreciation method, fixed asset cost, accumulation depreciation, and net book
value.
Oracle E-Business Suite Release 12.2 Release Value Proposition Japan 60

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Oracle E-Business Suite

RELEASE VALUE PROPOSITION

Prepared by E-Business Suite Product Management and Strategy

Last Updated: November 27, 2013

Copyright © 2013 Oracle Corporation

Oracle E-Business Suite Release 12.2 Release Value Proposition ii

Oracle E-Business Suite Release 12.2 Release Value Proposition iii

Oracle E-Business Suite Release 12.2 Release Value Proposition iv

Oracle E-Business Suite Release 12.2 Release Value Proposition v

Oracle E-Business Suite Release 12.2 Release Value Proposition vi

2.1. Purpose of Document

 Support global and shared service operations

 Enhance operational efficiency

3.1. Support global and shared service operations

3.2. Improve operational efficiencies

3.3. Reduce risk

 Gain process efficiencies

 Enforce controls and reduce risk

 Provide visibility and drive performance

4.1. Gain process efficiencies

4.1.1. Role-Based Access

4.1.2. Increased Efficiency for Processing and Reporting Across Ledgers

Enterprises want their financial applications to reflect their real-world organization

4.1.4. Automated and Accurate Intercompany Balances

4.1.5. Efficient Payment Handling

4.1.6. Improved Bank Account Maintenance

4.2. Enforce controls and reduce risks

4.2.1. Compliance with Legal and Reporting Requirements

Legal compliance remains of paramount importance in today’s global marketplace.

4.2.2. Greater Control, Transparency and Auditability with Centralized Accounting

4.2.3. Simplified Tax Compliance

The automation of tax processing through a central integrated engine improves

4.3. Provide visibility and drive performance

4.3.1. Comprehensive Business Intelligence

Finance professionals and managers across an organization desire to monitor

Oracle Financial Analytics provides hundreds of powerful financial metrics, alerts,

4.3.2. Simplified Self-Service Reporting

 Improve managerial decisions

 Comply with bankruptcy regulations

5.1. Improve managerial decisions

5.1.1. Improved Ability to Collect with Enhanced Dispute Management

5.2. Comply with bankruptcy regulations

5.2.1. Global Bankruptcy Visibility at the Party Level

 Increase transparency and efficiency with centralized setup

 Improve processing efficiencies

 Reduce cost through improved reporting

6.1. Increase transparency and efficiency with centralized setup

6.1.1. Flexible Accounting Configuration with Oracle Subledger Accounting

Standardizing and centralizing administrative processes and accounting can be

6.2. Improve processing efficiencies

6.2.1. Enhanced Mass Additions Interface for Legacy Conversions

The enhancements include availability of additional attributes to ease legacy data

6.2.2. Enhanced Productivity with Automated Depreciation Rollback for

6.2.3. Impairments/Unplanned Depreciation Visibility with Flexible

6.2.4. Unit of Production Depreciation for Oil and Gas Industry

6.3.1. Flexible Reporting Using BI Publisher

Oracle Assets leverages Oracle BI Publisher technology to support major asset

 Streamline and automate processes

 Optimize funds and reduce banking costs

 Effectively control bank account signatories

7.1. Streamline and automate processes

7.1.1. Simplified Setup and Streamlined Bank Account Reconciliation