Upgrade to R12 Now – The International and Multi-National Arena

Presented by: Marsha Edgell, BizTech Thomas Simkiss, BizTech

Presentation

Upgrade to R12 Now – A Financials Overview Upgrade to R12 Now – A Deep Dive into General Ledger Upgrade to R12 Now – The International and Multi National Arena Upgrade to R12 Now – Improvements in Cost Management Upgrade to R12 Now – Manufacturing and Order Processing Upgrade to R12 Now – Realizing Enterprise Value with Projects R12

Upgrade to R12 Now – Round Table Discussion

Upgrade to R12 Now – OAUG eLearning Sessions

Date

Jul 19, 2012

Presenter

Lee Briggs

Company

Jul 26, 2012 Aug 2, 2012 Aug 9, 2012 Aug 15, 2012 Aug 23, 2012

Aug 30, 2012

Mohan Iyer Marsha Edgell/Thomas Simkiss Douglas Volz Bob Bullman Mike Lennon

Thomas Simkiss

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• • 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

Mobile: 215-990-9001 Email: TSimkiss@BizTech.com

Website: www.BizTech.com

Prior Experience: Project Experience:

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 • Experience (partial list) 408 859 4484 mohan@fscpsolutions.com

www.fscpsolutions.com

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• • 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: Project Experience: Renal Treatment Centers

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, inter company, 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

Sample Project Experience:

+1 510 755 7050 doug@volzconsulting.com

www.volzconsulting.com

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

• • • • • 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

Mike Lennon, BizTech

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 Minor Release EBS 11i10 EBS R12 EBS R12.1

EBS 12.1.2

EBS 12.1.3

2004 Functional Innovation 2007 Financials, Technology 2009 2010 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 – Ledgers and Ledger Sets – Rules-based Accounting Engine – Unified Bank Account Model – Centralized Payments – – Global Tax Engine Global Intercompany System UNIFIED BANK ACCOUNT MODEL Legal Entity Operating Units 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 Regime Tax Determination Process 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 Where 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

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

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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

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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

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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

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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

1. Customer Shipment 2. COGS Recognition Inventory 10 Deferred COGS 10 10

• Use the COGS Revenue Matching Report

“True” COGS 10 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

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• • • 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.

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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

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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 • Reduced the number of steps to complete tasks • Improved overall look & feel Improved Usability • Uptake of Fusion technology • Increased personalization capabilities

54 UI Improvements

Sample of hover over pop-up

» Hover your cursor on Project Number in the project list table to view project details

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 Project Executives Project and Program Managers Project Accountants

• • •

Actionable Insight for Improving Project Portfolio Performance

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

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

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