Oracle Finance Rel 12

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Information about Oracle Finance Rel 12
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Published on March 11, 2009

Author: gokar

Source: authorstream.com

Overview of the New Financial Architecture in Oracle E-Business Suite Release 12 : Overview of the New Financial Architecture in Oracle E-Business Suite Release 12 Mary Burns Slide 2: The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. 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 for Oracle’s products remains at the sole discretion of Oracle. Agenda : Agenda What We Set Out To Address Release Twelve: The Global Release Global Architecture MultiOrg Access Control Subledger Accounting Ledgers and Ledger Sets Ledger Considerations Global Business Functions Legal Entities Accounting Set Up Manager E-Business Tax Advanced Intercompany Banking Model Slide 4: <Insert Picture Here> What we set out to address Doing Business Globally is ComplexTop Drivers of Complexity : National and International Laws & Regulations Actions by Competitors Changing Customer Requirements Industry Standards and Regulations Tax Codes Changing Workforce Attitudes International Reporting Standards Language and Cultural Differences 1 Doing Business Globally is ComplexTop Drivers of Complexity 2 3 4 5 6 7 8 Direct impact on Finance Source: PWC, 9th Annual Global CEO Survey Globalization is unstoppable. Regardless of geography, industry or income, companies are globalizing to gain new customers and access new markets. Is this a good thing? Nearly two-thirds of the CEOs we surveyed are positive about the impact that globalization will have on their organizations over the next three years. Source: 9th Annual Global CEO Survey – Globalization and Complexity; PwC 2006 Make it Simpler to do your job Control Costs by Managing Complexity : Make it Simpler to do your job Control Costs by Managing Complexity 50% Senior executives say simplification is driving the Finance agenda Source: PWC Management Barometer Make it Easier to do Your Job : Make it Easier to do Your Job 47% 26% 27% The Agile CFO, IBM Business Consulting Services, 2005 * Deloitte Consulting, 2006 % Yet To… Customers: Centralize, Simplify, Standardize : ControlledTransactionEntry Comprehensive and compliant processing Transparent Audit, Reconciliation& Drilldown Easy Reporting Analytics Customers: Centralize, Simplify, Standardize Work Globally, to be more competitive Think Globally, to make the right decisions Manage Globally, to lower cost and increase performance FinancialData forManagement - andCompliant How Financials Release 12 Can HelpThe Global Business Release : WORK GLOBALLY To Be More Competitive THINK GLOBALLY To Make the Right Decisions MANAGE GLOBALLY To Lower Cost & Increase Performance How Financials Release 12 Can HelpThe Global Business Release Financial Control & Reporting Credit-to-Cash Procure-to-Pay Treasury & Tax Performance Management Profitability Management Business Intelligence Integration Data Management Reporting Governance, Risk & Compliance Asset Management Travel & Expense Global: Of, relating to, or involving the entire earth; worldwide: global peace; global monetary policies, etc. Comprehensive; total: a... global, generalized sense of well-being Slide 10: <Insert Picture Here> Release Twelve The Global Business Release: A New Financial Architecture Global Financial Architecture : Global Financial Architecture 6 Major Initiatives Ledger and Ledger Sets Multi-Org Access Control Subledger Accounting Tax Engine Intercompany Bank Model Slide 12: <Insert Picture Here> Multi-Org Access Control MOAC: Multi-Org Access ControlRole based access to Operating Units : Responsibility Responsibility Responsibility Holland Legal Entity Denmark Legal Entity Belgium Legal Entity Belgium Operating Unit Holland Operating Unit Denmark Operating Unit Perform multiple tasks across operating units without changing responsibilities MOAC: Multi-Org Access ControlRole based access to Operating Units Purpose Built Cross OU “Desks”Shared Services : Purpose Built Cross OU “Desks”Shared Services Multiple Organization Access ControlSummary of Changes :  Multiple Organization Access ControlSummary of Changes Security Profiles for data security MO: Security Profile List of operating units for a responsibility Defined in HR OU field on UI all transactions setup data specific to OU, like transaction type Enhanced Multi-Org Reporting and Processing Ledger/Ledger Set parameter on accounting reports and processes OU parameter on other standard reports and processes For example: submit the Payables Open Interface Import w/OU param null to import all records across all OUs Multi-Org Access ControlIn practice : Multi-Org Access ControlIn practice Classify Organization as operating unit Select Operating Unit classification SelectOperating Units In daily use Run ReportsAcrossOperating Units Slide 17: <Insert Picture Here> Subledger Accounting Centralized Accounting PoliciesGreater Control, Transparency and Auditability : Payables 3rd Party Systems Centralized Accounting PoliciesGreater Control, Transparency and Auditability Internal control and compliance with multiple accounting policies through user-defined accounting rules Single source of truth for all subsystem accounting activity with a common data model and repository Accounting, reconciliation and reporting facilitated by centralized data model Streamline closing process with common posting engine Auditable and transparent entries accessible with full drilldown Work in Process Purchasing Subledger AccountingCentralized Rules, Common Repository: Global Control : Subledger AccountingCentralized Rules, Common Repository: Global Control Subledger AccountingTransaction Level Compliance : Subledger AccountingTransaction Level Compliance National Daily Journal Requirements Internal Control: Central Definitions, Eliminate overrides Policy Enforcement in Volume Processing Transparent Accounting Rules Debits & Credit at the point of the event Automate Foreign Operation adjustments ReconciliationPlatform “In accordancewith theUnderlyingRecords” Ticked & Tied : Ticked & Tied Multiple Accounting RepresentationsGlobal Compliance – Statutory and Stock Market : US GAAPUS COA US Calendar EUR Ledger B French Rules Plan Comptable French Calendar EUR Ledger A Multiple Accounting RepresentationsGlobal Compliance – Statutory and Stock Market Subledger Accounting Single subledger transaction can create multiple accounting representations and in multiple currencies Dr Cr Payables Invoice Chose to use an alternative Ledger - or just an Adjustment Ledger or segment or Multiple Ledgers SLA keeps the Subledgers & GL tied outKeep the auditors happy! : SLA keeps the Subledgers & GL tied outKeep the auditors happy! GL Journal Entries and Balances Subledger Applications Reconciled:Docs, SLA, GL in synch Accounting Configurations Accounting Program Subledger Journal Entries Subledger Balances Subledger AccountingService General Ledger Slide 24: <Insert Picture Here> Ledgers and Ledger Sets LedgerOne Repository of Financial Truth : LedgerOne Repository of Financial Truth Reporting Currency The balance on Creditors (COA) is 4.2M Eur (Currency) on March 31, 2006 (Calendar) according to IAS/IFRS definitions (Accounting Method) Ledger Sets Global Information At A Glance : Ledger Sets Global Information At A Glance French Rules Plan Comptable French Calendar EUR Ledger A Reporting Currency Ledger Sets Global Information At A Glance : Ledger Sets Global Information At A Glance Ledger Set Key benefits to many Ledgers in one set Decision-driving business information always available Simpler processing and General Ledger management Data and definitions that can be shared and secured US GAAP US COA US Calendar USD Ledger C French Rules Plan Comptable French Calendar EUR Ledger A Ledger D Reporting Currency US GAAP US COA US Calendar AUD Currency in Release 12 : Currency in Release 12 Transaction Currencies Accounting Currency in Primary Ledger Reporting Currency in Primary Ledger More Accounting Currencies in Secondary Ledgers For every transaction OR For SLA Posting level / GL activity level Balance level Translation or Remeasurement in Ledgers – within Ledger sets, run at one click Balance & Activity level Translation or Remeasurement in Financial Consolidation Hub Enhanced Revaluation [Functional Currency term dropped: conflicts with IAS 21 / FAS 52] Data Access, Definition Access : Data Access, Definition Access Data Access Sets Grant and tailor access to Ledgers and Balancing Segment Values (i.e. Companies, Stores, Branches, etc.) Definition Access Sets – separate from data security Share, restrict definitions; privileges to view, modify, etc. Slide 30: <Insert Picture Here> Ledger Considerations Ledger Sets – Work them your way : Ledger Sets – Work them your way When to use a Secondary Ledger, an Adjusting Segment or an Adjusting Ledger? : When to use a Secondary Ledger, an Adjusting Segment or an Adjusting Ledger? Slide 33: <Insert Picture Here> Global Business Functions Legal Entity: Your Registered Companies : Legal Entity: Your Registered Companies Legal Authorities Countries, States, Local,Agencies, Taxation,Registrars, Regulators... Legal Entities Registered Companies,Funds, Partnerships…Inc. LLC. Ltd. SA. GmBH. Etc. “exist in the outside world” Management Orgs Divisions, LOBS, Plants, Cost Centers, Whatever =“Decision Making Tags” Regulates Managed & analyzed by Parent companies (LEs) “own or control” subsidiaries (LEs) No outside ring - must pick an LE LEs create commercial transactions Complies LEs: Why and What? : LEs: Why and What? LEs pay the taxes - need tax registrations Trade between LEsneeds intercompany LEs own the moneyand bank accounts LEs file the accounts, take care of accounting LEs comply with whatever needscompliance: “legal” in LE Why We Care Addresses, Officers, etc. Enabled First Party stamp Added Establishments:map Registrations to Authorities GRE/LE not touched Authorities as TCA parties LE Configurator What we’ve done Tabulate your Registered Companies and other forms of LE : Setup and maintain: Legal Entities, Establishments, Jurisdictions, Legal Authorities, Legal Addresses Tabulate your Registered Companies and other forms of LE Where LE fits in… : Where LE fits in… Transaction Taxes -Complies &Files, Pays Actual RegisteredCompanies, etc. Et Cetera, 11i Maintains its SubledgerDocuments in many OUsDefault LegalContext (DLC) Accounts for itself in a Ledger or BSVs LegalEntity Ledger BusinessGroup GRE/LE OperatingUnits Registrationswith Authorities Files Files Establishments Registrationswith Authorities Legal Entity: Vehicle for compliance ExistsLocally Get the LE RightCompliance Falls Into Place : Transaction Taxes -Complies &Files, Pays Actual RegisteredCompanies, etc. Et Cetera, 11i Maintains its SubledgerDocuments in many OUsDefault LegalContext (DLC) Accounts for itself in a Ledger or BSVs LegalEntity Ledger BusinessGroup GRE/LE OperatingUnits Registrationswith Authorities Files Files Establishments Registrationswith Authorities ExistsLocally Legal Entity: Vehicle for compliance Get the LE RightCompliance Falls Into Place Slide 39: <Insert Picture Here> Accounting Setup Manager (ASM) Centralized Set-upAccounting Setup Manager : Define Multiple Ledgers for Rules & Currencies Define Legal Entities& Associated Rules One Place to manage Your Global AccountingRules, Currencies,Ledgers, And Ledger Sets Set Accounting Rulesfor All EBS Apps Ensure Complete & AccurateSetup via Online Checklist Centralized Set-upAccounting Setup Manager Slide 41: <Insert Picture Here> E-Business Tax Centralized Global TaxLess Complex Global Tax Compliance : Automation Tax content for certain countries Vertex and Taxware integration for U.S. Integrity checks during setup process Constant Changes in Tax Laws and Regulations Date effective setup Tax rules flow for change or creating rules Tax simulator for setup, rules, and transactions Business Needs Solution Local Compliance Tax registrations and tax reporting codes Tax lines determine applicable taxes Configurable tax reporting templates Centralized Global TaxLess Complex Global Tax Compliance Information Visibility Single set up for all Oracle applications Use of E-Business Suite components such as trading partner geography, trading partner classification, legal entity, inventory item categorization, and accounting event. Oracle E-Business TaxProcessing taxes for transactions and reporting : Oracle E-Business TaxProcessing taxes for transactions and reporting Transactions … Slide 44: <Insert Picture Here> Advanced Intercompany (AGIS) Advanced Global Intercompany SystemAddress the Top Barrier to a Fast Close : Web UI Open Interfaces / API Excel (Web ADI) Advanced GlobalIntercompanySystem Generate subledger invoices Control transaction entry with Intercompany Calendar Fully Configurable Approval Rules Flexible Security Model Centrally defined Intercompany Accounts Advanced Global Intercompany SystemAddress the Top Barrier to a Fast Close AGIS at WorkRebilling a Corporate Cost from an USA HQ : AGIS at WorkRebilling a Corporate Cost from an USA HQ CaliforniaCompany New YorkCompany IllinoisCompany ItalyCompany FranceCompany GL Entries created for US subsidiaries AP and AR Invoices created for France and Italy Slide 47: <Insert Picture Here> Banking Model Centralized BankingShared Services Disbursements : Bank account is now associated with LE entity rather than Operating Unit Single bank account serves multiple Operating Units Any and all Operating Units associated with a ledger can be permitted to use the bank account Assets Projects Receivables Payables Purchasing Projects Receivables Payables Inventory Plus Centralized Credit Card Model Credit Card Encryption Supplier & Customer Banks in TCA Centralized BankingShared Services Disbursements Work in Process LE OU A OU B OU C Bank Model: Example of What You Can DoPay invoices from different OUs with 1 instruction : Bank Model: Example of What You Can DoPay invoices from different OUs with 1 instruction New Payments Module New Bank Model New Bank & Credit Card Features Banks :  Banks Slide 51: <Insert Picture Here> Sharing Services All Together: Easier To Share ServicesCentral processing, Distributed impact : Shared Service Infrastructure(Serves Informal and Formal) Organizational Access Cross Org ProcessesBanking ModelInter Unit Accounting All Together: Easier To Share ServicesCentral processing, Distributed impact SSCs(Formal) SLAs & Tax Inter-LE Formal SSCsAt home or overseas Call Centers, OutsourcingOffshoring, SAS 70, On Demand Informal Service SharingProcess Efficiency Decentralized Depts. Centralized Depts.. Normal BusinessPractice Ledgers & Ledger Sets Ledgers with Balancing Segments MOAC across OUs Intercompany Bank ModelTax Ledger and Ledger Sets Subledger Accounting Intercompany, Tax Engine MOAC across LEs, Bank Internal Controls Manager What the Architecture Gets You : Work Globally Global Order Desk Global Procurement Global Billing Global Dunning Think Globally Global Ledger Sets – worldwide insight Global Reporting Manage Globally Global Accounting Rules Global Set-up Global Integration What the Architecture Gets You Release 12 Subsidiary LEs…. …account for themselves in Ledgers, and… Ledger Set Company Company Company Multi-OrgAccessControl manage their subledger data in Operating Units Share Services, maintain privacyExploit Cross-OU Processes : Share Services, maintain privacyExploit Cross-OU Processes Yesterday: An LE Group in 1 SoB with 1 OU - no partitioning R12: Introduce partitioning without sacrificing processes Release 12: The Global Business Release : MOAC, +300 Features SLA, Tax Ledger Sets,Ledgers XML Publisher Reporting Profitability Mgr, EPB Subledger Release 12: The Global Business Release Work Globally, to be more competitive Think Globally, to make the right decisions Manage Globally, to lower cost and increase performance DBI, FCH Intercompany, Bank, Payments OICM TCA, LE ü Slide 56: A Q & Q U E S T I O N S

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