Upgrade to R12 Now –
The International and
Multi-National Arena
Presented by:
Marsha Edgell, BizTech
Thomas Simkiss, BizTech
Upgrade to R12 Now – OAUG eLearning
Sessions
Presentation
Date
Presenter
Upgrade to R12 Now – A
Financials Overview
Jul 19, 2012
Lee Briggs
Upgrade to R12 Now – A
Deep Dive into General
Ledger
Jul 26, 2012
Mohan Iyer
Upgrade to R12 Now – The
International and MultiNational Arena
Aug 2, 2012
Marsha
Edgell/Thomas
Simkiss
Upgrade to R12 Now –
Improvements in Cost
Management
Aug 9, 2012
Douglas Volz
Upgrade to R12 Now –
Manufacturing and Order
Processing
Aug 15, 2012
Bob Bullman
Upgrade to R12 Now –
Realizing Enterprise Value
with Projects R12
Aug 23, 2012
Mike Lennon
Upgrade to R12 Now –
Round Table Discussion
Aug 30, 2012
Thomas Simkiss
Company
2
Thomas Simkiss – COO
Oracle Applications Practice Lead
•
•
Professional Summary
– Senior functional and technical consultant
– 15 + years combined industry and consulting experience
– Roles in over two dozen packaged software implementations,
experience with business process redesign and SOX compliance
reviews.
– Thomas is a CPA in NJ, and a member of the PA, NJ, and
American Bar Association.
Qualification Summary
– Specific areas of Oracle knowledge include releases 10.7 through
12.1.3 in Financials, Manufacturing, Project Costing and Billing,
Discoverer, and Reports Developer, and OBIEE RPD development
and deployment.
– UPK 3.1 through 11.x
Prior Experience:
Project Experience:
Mobile: 215-990-9001
Email: TSimkiss@BizTech.com
Website: www.BizTech.com
Lee Briggs, BizTech
• Director, Financials Management Practice
• 12 Years of experience as an Oracle Application
implementation consultant
• Over 38 Full Cycle implementations
• Coordinator of the ADI SIG
• Oracle Certified Specialist in General Ledger and Payables
• Prior Presentations at Collaborate
–
–
XML Publisher – Taking Reports from Drab to Fab! Collaborate 08 & 09
FSGs in Release 12: Since ADI Is Not Supported, How Do I Use BI Publisher?
Collaborate 10
–
Desktop Integrators – You Mean I Can Load Data Straight From a Spreadsheet?
Collaborate 11
–
Inter and Intra Accounting in R12 – A Deep Dive Collaborate 12
• Subject matter expert in financial business process - with
25+ years of IT experience in design, development,
implementation and process improvement
• Author of “Oracle E-Business Suite Financials R12: A
Functionality Guide”,
• Experience of multiple full life cycle implementations
• Project Management experience of leading at least 12+
projects to successful completion
• Strong experience in conducting workshops on business
processes
408 859 4484
mohan@fscpsolutions.com
www.fscpsolutions.com
• Experience (partial list)
5
Marsha Edgell
Oracle Applications Specialist
•
•
Professional Summary
– Senior functional consultant
– 20 + years combined industry and consulting experience
– Roles in over thirty packaged software implementations
– Extensive experience with on-shore / off-shore resource
management, coordination and hiring
Qualification Summary
– Specific areas of Oracle knowledge include releases 10.7 through
12.1.3 in Financials
– PMP Certified
– Director of Global IT Operations in a multi-national organization
Mobile:
Email:
Website: www.BizTech.com
Prior Experience:
Renal Treatment
Centers
Project Experience:
Douglas Volz
•
•
Professional Summary
– Helping people use Oracle since 1990 for Cost Accounting
and related Financials, Manufacturing and EAM modules.
– 30+ years industry, design and consulting experience,
specializing in the design, implementation and project
delivery for Cost Management business solutions
– Specific areas of expertise include profit in inventory, intercompany, A/P accruals, multi-org inventory reporting, WIP
analysis, inventory reconciliation and margin analysis
– Presenter at Collaborate (OAUG) and UKOUG since 1996
– Multi-national experience in twelve countries
Qualification Summary
– Former co-designer for Oracle Cost Management
– Lead the OAUG Cost Management Special Interest Group
– Prior Accounting and Cost Management industry experience
+1 510 755 7050
doug@volzconsulting.com
www.volzconsulting.com
Sample Project Experience:
Slide 7
Bob Bullman
Oracle Applications Practice Director
Professional Summary:
– Professional Supply Chain Consultant (15+ years implementing Oracle Applications)
– Held multiple management positions at Oracle with in the Application’s group
– Advanced Planning and Distribution optimization expert
– R12 Solution Architect ( Manufacturing, Order Management, and Service )
– Techno-Functional consultant
Qualification Summary:
– APICS Certified at the Fellow level
– Prior certification in Oracle Manufacturing and Supply Chain modules
– Bachelors Degree in Finance
Project Experience:
– Full suite R12 Financials, Order Management, and Manufacturing, including VAT taxation
– Implemented many other R12 and 11i installs, as well as prior version of Oracle including CRM (E-Bus only)
– Presented at many different types user groups and professional organizations (APICS, OAUG)
– Designed and coded many extensions to the E-Business suite, as well as performed numerous data
conversions.
8
Mike Lennon, BizTech
• Managing Partner & Projects Practice
Lead
• 15+ Years of experience as an Oracle
Application Implementation
Consultant
• Over 50 Full Cycle implementations
• Prior OAUG Presentations:
– Using HR & Projects – Capture
Resource Time & Expense (CWK Flow)
– Implementing FA Book Security
– Transforming E-Business Strategy into
Practice
– Deploying WorkFlow.
– Financial Processing and Reporting
Made Easy with ADI.
• Newborn (Griffin) & Golf
Plan| The Right Strategy
Building a Business Case To Upgrade
R12 Upgrade Key Questions …
• Would you like to reduce reliance on IT staff for report creation?
• Are you satisfied with the number of days it takes to close at period end?
• Do you have a large number of sets of books?
• Do you want to improve reconciliation and reporting at period end?
• Would you like to increase the efficiency of your tax and payment
processing?
• Are you required to maintain multiple accounting representations?
• Would you like auditable and transparent accounting entries accessible with
full drilldown?
• Would you like to gain efficiency with processing and reporting across
operating units?
• Would you like to implement shared service centers?
Why Upgrade to R12
Straight Talk from Customers
“We have 60 sets of books and see tremendous efficiencies with running processes
across these sets of books using Ledger Sets.”
“Ability to issue one payment instruction to the bank for payments of invoices in
multiple operating units was viewed as a huge benefit from the user community.”
“Multi-Org Access Control (MOAC) will definitely reduce the workload and the number
of people performing process related tasks. The users are very excited and the
benefits of MOAC were readily visible to them.”
“The ability to access multiple operating units with a single responsibility can simplify
SOX compliance monitoring.”
“The functionality offered with Advanced Global Intercompany System (AGIS),
specifically the creation of physical invoices to be created for I/C transactions in Payables
and Receivables eliminates many customizations in this area.”
“Centralization of subledger accounting rules would minimize set up and maintenance,
providing greater financial control, and enforcing a consistent approach for true global
accounting.”
“Banks, taxes, payments, and accounting – everything that becomes centralized will
bring tremendous efficiencies to our organization.”
Plan| The Right Strategy
Why Upgrade to R12?
Continued Release and Innovation
Released
Major Release
EBS
11i10
EBS
R12
EBS
R12.1
EBS
12.1.2
Minor Release
2004
Functional
Innovation
2007
Financials,
Technology
2009
2010
EBS
12.1.3
2011
Procurement, HCM, Service, SCM, Projects,
Financials, Technology, MDM
14
E-Business Suite Release 12.1
Focus on Opportunities to Achieve
Rapid Return
Invest in Ways to Standardize and
Simplify with a Global Business
Platform
15
Greater Control, Increased Flexibility
WHAT’S NEW IN 12
UNIFIED BANK ACCOUNT MODEL
– Ledgers and Ledger Sets
– Rules-based Accounting Engine
– Unified Bank Account Model
Legal Entity
Operating Units
– Centralized Payments
– Global Tax Engine
– Global Intercompany System
CENTRALIZED PAYMENTS ENGINE
Funds Capture and Disbursement
RESULTS
– Faster, simpler period end processing
– Easily meet local accounting requirements
– Streamline intercompany trading and
reconciliation
– Adapt quickly to regulatory changes
– More productive shared service centers
Payments
Engine
ONE GLOBAL TAX ENGINE
• Centrally managed rules
• Consistent tax services
Tax Determination Process
Regime
Applicable
Taxes
Tax Status,
Rate
Taxable
Basis
Tax
Calculation
16
A Deep Dive into General Ledger
•
•
•
•
•
•
•
•
“Legal Entity”
Chart of Account qualifiers
Data Access Sets
Ledger Sets
Sub-ledger Accounting (SLA)
Report Manager
Web ADI
Consolidation - Chart of Accounts Mapping
17
Legal Entities
What
A Legal Entity is
an association, corporation, partnership, proprietorship, trust, or individual that
has legal standing in the eyes of law
A legal entity has a legal capacity to
into agreements or contracts, assume obligations, incur and pay debts
Why
Model the legal structure independently of operational structure and accounting
structure
Allow mapping of legal entities to
Accounting Structure – Ledger and balancing segment values
Organizational Structure – Operating Units
Identify legal entity on transactions to enable compliance and support
Legal Reporting – with a plethora of BI Publisher reports
Calculation of Taxes – in the new rules based tax engine (EBTax)
Intercompany – using the Advanced Global Intercompany System
Where A Legal Entity is required in E-Business Suite tax to manage
•
•
•
A legal entity is created – the first step - in
the new Accounting Setup Wizard; and will
be part of the Accounting structure
The legal entity will be associated with the
ledger
Bank Accounts (owns bank accounts)
•
•
Advanced Global Intercompany
System (owns transactions)
E-Business Tax (owns tax
registrations/regimes)
18
Accounting Flexfield Qualifiers
19
Chart of Account – New Qualifiers
• Secondary tracking segment
– Allows to manage Cumulative Translation Adjustment, Retained
Earnings and Gain/Loss accounts for a combination of the
balancing and a secondary segment
• Intercompany
– Allows for automatically balancing transactions between
balancing segment values, both intra- and inter-company
(across legal entities)
• Management segment (R12)
– Allows securing data for reporting by values in a specific
segment (qualified as Management Segment)
20
Ledger and Data Access Sets
• Ledger Sets
– Can be used to group ledgers into a single bucket
– Ledgers MUST have
• Same Chart of Accounts
• Same Calendar and period type combination
– Processes that can be performed in unison on a
ledger set
•
•
•
•
Open/Close periods
Revaluation and Translation
Recurring Journals
Inquiry and Reporting
21
Web ADI
• A new framework has been created to enable
integration with data creation
• This new framework allows data integration
with any Oracle product
• Only few products have pre-delivered
solutions (FA, GL, HR, etc..)
• You can create one for AP or SLA or any other
product
• The Web ADI is faster and only allows data
entry – no reporting
22
Report Manager
• Replaces the capability to generate FSG
reports in Desktop ADI
• Has additional functionality than what was
available in Desktop ADI
• Report Manager
– can store reports output in the database as a static source
– allows access security to be managed within the reports
repository
– allows access to reports via a menu “function”
– allows similar reports to be stored with a “period”
identifier
23
International and Multinational
Enhancements
•
•
•
•
•
•
Subledger Accounting
Secondary Ledgers
Advanced Global Intercompany
Global Financials
eBusiness Tax
Payments
24
Subledger Accounting
• Rules based accounting engine allows for
multiple representations of the same
transaction
– Payables invoice in Europe accounted in
• US GAAP
• French Statutory Chart of Accounts
• IFRS
• Secondary ledgers support currency and
historical reporting needs
25
Advanced Global Intercompany
• Streamline Intercompany trading, billing, and
payments across ledgers and currencies
• Allows compliance with local regulations
– Treat intercompany transactions as “arms length”
with AR and AP Invoices
• Purge rejected transactions. Preserve
database space
26
Financials for EMEA
•
•
•
•
•
•
•
•
Payables Turnover Report
Supplier Statements
Receivables Aggregate VAT Statement
Customer Statements
Regional Cash Desk Report
Account Analysis Report
Account Analysis Detailed Reporting
Enhanced Statutory Report Extracts for Italy
27
Financials for India
• Enhanced Tax Support
– Fringe Benefit Tax Support
– Inclusive Tax Support
– Tax Information on Purchase Order Workflow Notification
for India
– Reassessing Service Tax on Receipt of Foreign Payments for
India
– Display of Value Added Tax (VAT) Invoice Number in
Receivables Transaction Workbench for India
• Retroactive Pricing Support
• Payables Invoices Support for India
• Advanced Pricing Support for India
28
eBusiness Tax
• Financials for EMEA
• Financials for India
• Taxes in Payables may be changed from
Exclusive to Inclusive on the fly
– Greater support for VAT recovery
• Golden Tax Adaptor Enhancements for
Mainland China
29
Payments
• Banks are owned by Legal Entities
– Payments across operating units supported via MOAC
• Single Euro Payments Area (SEPA) Support
30
R12 Cost Management Enhancements
•
•
•
•
•
MOAC – Multi-Org Access Control
Subledger Accounting – OPM & Discrete Costing
COGS Recognition
“As Of Dates” for Inventory Reporting
Re-Designed A/P Accruals
31
R12 Multi-Org Access Control
• Mostly affects “operating unit” level functions
• Allows you to access information across multiple operating
units without changing responsibilities
• Set up a security profile listing the operating units to access
• Run Security List Maintenance concurrent program
• Assign the security profile using the MO: Security Profile
32
Oracle Discrete Costing and SLA
• Flexible variance account recognition for:
⁻
⁻
⁻
⁻
⁻
⁻
⁻
Invoice price and purchase variances
Average cost adjustment
Standard cost adjustment
Manufacturing variances
Account aliases
Freight charges
Most other inventory, manufacturing and related
account entries
33
COGS Recognition
• In R12 customer shipment entries go to deferred COGS
• Revenue and COGS are explicitly matched
• AR: “Autoinvoice” & “Revenue Recognition Master Program”
⁻ CST: “Inventory Cost Processor” or
“Record Order Management”
⁻ CST: “Collect Revenue Recognition Information”
⁻ CST: Then “Generate COGS Recognition Events”
• New Accounting Entries to clear deferred COGS
• Use the COGS Revenue and COGS Matching Report
34
COGS Recognition – Accounting Entries
• New Accounting Entries to clear deferred COGS
Inventory
1. Customer Shipment
10
2. COGS Recognition
Deferred
COGS
“True”
COGS
10
10
10
• Use the COGS Revenue Matching Report
35
Inventory Value Reports “As Of Date”
• Four major reasons for month-end inventory-out-of-balances
⁻
⁻
⁻
⁻
Sharing system accounts leading to poor or no ability to reconcile
Using the same offset account as valuation on miscellaneous inventory transactions
Manual journal entries
Having poor month-end cut-off
• Proper System Setup Fixes the first three (setups and G/L security rules)
• Now Inventory Value Reports have an “As Of Date” so you get accurate
month-end valuation reporting
36
A/P Accruals
• Perpetual A/P Accruals are Completely Rewritten
⁻
⁻
⁻
⁻
Monthly load into summary tables
Excellent detail and summary reporting
(same report/two templates)
A/P Accrual write-offs go to your G/L
Works right out of the box!
• Period End Accruals:
⁻
⁻
⁻
Calculate Accrual Balances at PO Distribution Level
Period-end accrual entries stored in a separate accounting table and automatically
reversed in the new month
Uninvoiced Receipts Report and Period-End Accruals use same underlying code / same
results
• Challenges with R12 Perpetual A/P Accruals
•
Only shows your net position, only remaining balances
⁻
⁻
•
Must reconcile month-by-month, cannot go back
Can be difficult to identify reconciliation issues
Intercompany A/P Accruals are now on the Miscellaneous A/P Accrual
Reconciliation Report
37
R12 Manufacturing and OM
•
•
•
•
•
Engineering (same approvals)
Capacity
Mfg. Scheduling
PO Receiving
Bills and Routings
38
Update Material Control in
Common Bills
• While retaining a common BOM relationship, users can update the
following attributes at the org level:
– Operation Sequence
– WIP Supply Type
– Sub-Inventory
– Locator
– Include in cost roll-up
• Benefits:
Facilitates standardization by deploying common bills while enabling
typical organization overrides
39
Inventory
• Material Status
– Used for Lot control before QA Approval is
complete you can not reserve a lot.
• Defining Picking Rules
– Used to only be one for shipping and Discrete Job
picking.
– Now you can have many!
• OPM Inventory Convergence
40
Material Status
• Material Status control restricts the movement and usage of
portions of on-hand inventory.
• Using material status control enables you to control whether
you can pick or ship an internal order or sales order, or issue
material for a work order. You can also specify whether
material needs to be quarantined until you inspect it.
• In addition, you can determine whether products with a
particular status can be reserved, included in available to
promise calculations, or netted in production planning.
• You assign material statuses at four levels: subinventory,
locator, lot, and serial.
41
Enhanced Picking Rules
• You can create picking rules that enable you to sort picks
based on criteria that you define for sales orders, process
manufacturing batches, or work in process jobs.
• Oracle Inventory reviews the picking criteria order and the
options for each criterion.
42
Purchasing/MRP
• Auto-Approval Tolerances for Change Orders
• This one is long overdue, still creates new revision.
• Changing dates when not using iSupplier can be very time
consuming and most often didn’t require approval.
• Buyer Work Center
• HTML PO Summary and change without so many levels.
• Easier user interface with all a buyer needs in one html form –
Auto-create PO, create and query PO’s and blankets
• Rescheduling of PO from ASCP
– Works well for Planner/Buyer role (i.e. the planner for an item is the
buyer too)
• PI Publisher used for PO layout.
43
Supplier Management
44
Order Management
• Adaptable User Interface
• Item Order-ability
• Enhanced Inventory Reservations
(Reservations Against WIP)
45
Adaptable User Interface
46
Item Order-ability
•
•
Businesses need to be able to order specific products depending on specific
customers. Instead of being able to view and select all items for all customers in
the sales orders window, you can now restrict the item list based on customer and
other related criteria.
If the value of the profile option OM: Use Materialized View for Items LOV
(Honours Item Orderability Rules) is set to No, then the Ordered Items LOV lists all
the items of the item validation organization of the current operating unit. This
doesn't consider the defined item orderability rules, however if there is a defined
rule that prevents the item from being ordered, then an error message is displayed
during the saving of the order. You will not be able to save the order.
47
Installed-Base
• Entirely new HTML user
interface...dramatically improved functionality
“11.5.10 to be virtually unusable in it’s former state”
• Increased integration across Service Contracts,
OM and Field Service allowing easy instance
creation, update and transfer
48
Oracle Projects 12.1.1
New and Enhanced Functionality
•
•
•
•
•
•
•
•
•
•
Enhanced Reporting Options and Capabilities
Validate Project & Assignment Dates
Improved Workplan Usability
Enhanced Budget and Forecast Usability
Subcontractor Payment Controls
Stronger Resource Planning Capabilities
Greater Control on Services Spend
Streamlining Cost Adjustment Processing
Adjusting to Contract Changes
Reimbursable Agreement Processing
Project Managers Reporting Pack
Reporting Capabilities
Capabilities:
– Access information in disconnected mode
– Pre-seeded with several useful reports that can be
customized
– Configure the report layout and data
– Schedule the creation and distribution of reports
– Choose from various types of report output options
Key Benefits:
– Allow managers to stay “in the know while the go”
– Simple interface to create and modify reports means less
specialized skills required
Integrated Services Procurement
Greater Control over Services Spend
WHAT’S NEW IN 12.1
 Many to Many relationship
between HR Assignment and
Purchase Order
 Project Distribution based on
Timecard Entries
RESULTS
 Lower costs overall in services spending
 Helps enforce policy compliance
 Enhance cash flow by reducing time delays
in transaction processing
Enhanced Usability to Plan & Control
Planning
• Generate forecast using planned values
– In the Generation Options page, select “Copy ETC
from Plan”
– You can only enable the new option when
• Plan Type is “Cost Only”
• Time Phasing is enabled in the ‘Plan Settings’ page
• Task Level Selection is enabled on the Edit Planning Options page
• Either “Financial Plan” or “Work plan Resource” is selected as the ETC
Source in the Edit Planning Options page
• Change Document and Open Commitment are not enabled in the
Generation Options page
UI Improvements
Better User Experience
• New Favorites Menu
• New Navigator Menu
• New Home Page
• Cross Project Work Lists
• New Hover and Pop-up Windows
Improved Usability
• Reduced the number of steps to
complete tasks
• Improved overall look & feel
• Uptake of Fusion technology
• Increased personalization capabilities
UI Improvements
Sample of hover over pop-up
» Hover your cursor on Project Number in the project list table
to view project details
54
Make Better Decisions with Greater Insight
Project Analytics
WHAT
– Complete solution for project
business lifecycle reporting
– Role-based best practices provide
relevant and actionable insight
HOW
– Actionable insight for improving
project portfolio performance
– Track project/program
performance and control project
costs
– Complete insight into project
revenue, billing and profitability
RESULTS
– Improve cash flow
– Optimize resource utilization
– Accelerate deliveries
– Lower operational costs
– Improve margins
– Reduce project and financial risk
Oracle Project Analytics
Better Manage Projects and Improve Profitability
ANALYSIS & METRICS
Funding and Budgets
• Agreement Amount
• Baseline Amount
• Allocated Amount
• Original Cost Budget
• Current Cost Budget
• Original Revenue Budget
• Current Revenue Budget
• Forecast Cost Budget
• Forecast Revenue Budget
• ITD, QTD, YTD Metrics
Project Cost
• Burdened Cost
• Burden Cost
• Raw Cost
• Equipment Cost
• Equipment Efforts
• People Cost
• People Efforts
• Billable Cost
• Non-Billable Cost
• ITD, QTD, YTD Metrics
Project Revenue and Billing
• Revenue Amount
• Revenue Quantity
• Unbilled Receivables
• Unearned Revenue
• Invoiced Amount
• # of Approved Invoices
• Retention Billed
• Retention Withheld
• Write-off Amount
• ITD, QTD, YTD Metrics
Project Profitability
• Margin
• Margin-ITD
• Margin Percent
• Margin Percent -ITD
• Forecast Margin
• Margin Change
• Cost Variance
• Forecast Cost Variance
• ETC Burdened Cost
• ETC Revenue
BENEFITS
• More timely, informed decisions at all
levels of the Project organization
• Control Project costs before they impact
Project profitability
• Maximize cash flow with better insight into
payables, commitments and billings
• Control the risk of overall project portfolio
• Control the budgets and Improve the
profitability
• Identify at-risk projects and initiate
corrective actions
• Empower project team with the ability to
manage projects better
Role-Based Best Practices
Provide Relevant and Actionable Insight for Everyone
Project Analytics – Key Objectives and Questions by Role
Actionable Insight for Improving Project Portfolio Performance
Project
Executives
•
•
•
What are my top 10 profitable
projects?
What are At-Risk projects?
Which organization is doing better?
•
•
•
What is the overall health of my project
portfolio?
How is my cash flow? How do I
Improve?
Where do I invest more?
Track Project / Program Performance and Control Project Costs
Project and
Program
Managers
•
•
What is the overall health of my
project/program?
What is my cost variance? Where I am
spending more?
•
•
How do I optimize the project
resources
How well am I meeting the project
goals and stakeholder expectations?
Complete Insight into Project Revenue, Billing and Profitability
•
Project
Accountants
•
•
What is the total agreed amount from
the contract for a project?
How much of the funding amount has
been billed?
What is the current and expected
profitability based on the current status
•
•
•
How much backlog was lost and which
projects were responsible for this?
How do current billings compare with
billings from the previous period?
How many invoices pending for
approval?
Contact Information
Thomas Simkiss, JD, CPA
Tsimkiss@BizTech.com
Lee Briggs
Lbriggs@BizTech.com
Bob Bullman
Bbullman@BizTech.com
Mike Lennon, CPA
Mlennon@BizTech.com
Mohan Iyer
mohan@fscpsolutions.com
Marsha Edgell
Medgell@BizTech.com
Douglas Volz
doug@volzconsulting.com
58