- Atlanta OAUGatloaug.communities.oaug.org/.../Presentations/Oracle_082313.pdfFixed Assets...

<Insert Picture Here>

Oracle E-Business Suite Financials Release 12.1 Overview

Stephen Ouellette, CPA

Solutions Consultant, Applications

3

Complexity = Increased Costs

12.1 Overview

Agenda

Key Takeaways

Copyright © 2010, Oracle and/or its affiliates. All rights reserved.

4

• Fragmented, decentralized systems

• Disparate policies, processes, and controls

• Regional centralization

• Some standardization, but

mostly manual processes

• Consolidated systems

• Standardized policies,

processes and controls

• Automated processes

Co

mp

lex

ity &

Co

sts

Complexity Drives Up Costs


5


12.1 Overview

Agenda

Key Takeaways


6

Procure to

Pay

Credit to

Cash

Cash &

Treasury

Management

Financial

Control &

Reporting

Financials

Architecture

Financials

12.1 Travel &

Expense

Management

Oracle E-Business Suite Financials


7


Procure to

Pay

Credit to

Cash

Cash &

Treasury

Management

Financial

Control &

Reporting

Financials

Architecture

Financials

12.1 Travel &

Expense

Management


8

Oracle E-Business Suite Financials Financials Architecture Imperatives

DRIVE CONSISTENCY standardization

INCREASE EFFICIENCY shared services

ADAPT changing business needs


9

Legal Entity Banking &

Payments Global Tax

Intercompany

Accounting

Centralized Accounting

Dr Cr

3rd Party

Systems

Inventory

Purchasing

Receivables

Payables

Projects

WIP

Rules-based Accounting Engine

Global Tax Engine

Intercompany

Banking & Payments

Multi-Org Access Control

Legal Entity

Fin

Arch Drive Consistency and Standardization Going Beyond the Traditional Financials Architecture

Centralized Functions:


10

Benefits

Accurate recognition of legal ownership

specific to local jurisdictions

Comply with laws and regulations

Ensure accurate changes to legal data

Features

• Centrally manage legal structure

• Link tax, intercompany, bank account,

and accounting functions to legal entities

• Track and report by legal entity,

establishment and registration

• Audit trail of legal data changes

Drive Consistency and Standardization Centralized Legal Entity Management


11

Bank Account

Centralized setup and maintenance

Drive Consistency and Standardization Centralized Banking and Payments

Payables Receivables Advanced Collections

Payroll Cash

Management Treasury


Centralized Payment Engine for

Funds Capture & Disbursement

12

Bank Account


Legal Entity

Operating Unit Operating Unit Operating Unit

Payables

Treasury

Payroll

Receivables

Payables

Payroll

Bank accounts owned and managed through Legal Entities


13



• Increased efficiency and control

• Real-time visibility into cash flows

• Consistency for shared service centers

• Easier reconciliation of bank accounts

14

Drive Consistency and Standardization Centralized Global Tax Processing

Benefits

Increase efficiency and reduce errors

Easily meet global & local tax compliance

Features

• Configurable rules-based Tax Engine

• Across all E-Business Suite products

• Integration with Major Tax Vendors

(Vertex & Taxware in US)

• Tax Simulator to verify and test setup

Tax Engine

AP

PO

AR

Assets

Cash Mgmt

Other

Inventory

Projects


15

Drive Consistency and Standardization Centralized Advanced Global Intercompany System

• Centralized I/C Account Setup

• Workflow Enabled

• Easy Reconciliation

Benefits

Streamline intercompany processing

Eliminate errors

Standardize accounting policies

Increase straight through processing

with intercompany invoice generation

Features

• Centralized intercompany and

intracompany accounts setup

• Automatic generation of accounts

• Flexible approvals & invoicing options

• Integration with GL, AP, and AR


16

Responsibility Responsibility Responsibility Single Responsibility

Transaction Processing

• Accounting

• Invoice Entry

• Billing, Dunning & Collections

• Procurement

• Order Management

• Payments

• Reports

Holland

Legal Entity

Denmark

Legal Entity

Belgium

Legal Entity

Belgium

Legal Entity

Holland

Operating Unit

Belgium

Operating Unit

Denmark

Operating Unit

Increase Shared Service Center Efficiency Access Multiple Organizations


17

CENTRALIZED ACCESS

France Legal Entity

Italy Legal Entity

U.S. Legal Entity

Business

Unit

Business

Unit

Business

Unit

Single Sign-On

ONE GLOBAL TAX ENGINE

CENTRALIZED PAYMENTS &

FUNDS CAPTURE ENGINE

Central Engine

• Centrally managed rules

• Consistent tax services

UNIFIED BANK ACCOUNT MODEL

Legal Entity

Business

Unit

Business

Unit

Business

Unit

Payments Receipts

Increase Shared Service Center Efficiency Lower Transaction Costs


19


Procure to

Pay

Credit to

Cash

Cash &

Treasury

Management

Financial

Control &

Reporting

Financials

Architecture

Financials

12.1 Travel &

Expense

Management


20

Increase OPERATIONAL EFFICIENCY

Oracle E-Business Suite Financials Financial Control and Reporting Imperatives

Meet GLOBAL ACCOUNTING STANDARDS

Better Decisions with GREATER INSIGHT


21

Multiple ledgers maintain

multiple accounting

representations

Legal Entity

US

Ledger

French

Ledger

Meet Global Accounting Standards Ledger Architecture with Centralized Accounting Engine

French Rules

Plan Comptable

French Calendar

EUR

US GAAP

US COA

US Calendar

USD

Dr. R&D Costs 6,000 USD

Cr. Payables 6,000 USD

Dr. Asset 9,000 EUR

Cr. Payables 9,000 EUR

Payables Invoice

Centralized

Accounting

Engine


22

Legal Entity

US

Ledger

French

Ledger

Projects Receivables Fixed Assets Purchasing Payables

Oracle Subledgers

New Features

• Centralized, configurable

accounting rules

• Consistent user interface

across subledgers

Centralized

Accounting

Engine

Benefits

Accounting Consistency

Reduced Costs

Detailed, Auditable Journals

Simultaneous Multi-GAAP

Representations

Complete Audit Trail

Meet Global Accounting Standards Centralized Accounting Engine


http://www.google.com/imgres?imgurl=http://www.powertrackglobal.com/uploadedImages/Home_Page/Payables-square133x133.gif&imgrefurl=http://www.powertrackglobal.com/payables.aspx&usg=__EtICc0I42YUh86PjA7cBklbWzuU=&h=133&w=133&sz=13&hl=en&start=1&itbs=1&tbnid=K5rZARY825E-NM:&tbnh=92&tbnw=92&prev=/images?q=payables&hl=en&sa=G&as_st=y&tbs=isch:1,itp:photo

23

• Brazilian Electronic

Collection Document

Process (DDA)

Brazil

• European Community

VAT Changes for 2010

• Belgium Annual VAT

Report File Format v1.3

• Argentina Simplified

Regime (Monotributo)

Argentina

• Asset Impairment

for Japan Tax

Reform 2007

• Asset changes to

support Japanese

legislation

changes

Japan

• Enhanced VAT for

Flexible Recovery

Schedule

• VAT Statutory

Accounting &

Reporting for Non-

Shippable Items

• China Golden Tax Adapter

Enhancements

China Europe

India

• Enhanced VAT Report

• Withholding Tax File –

856

Israel • Italy Annual VAT and

Withholding Extract

Italy

Meet Global Accounting and Reporting Standards


24

Localizations Comply with Local Rules and Regulations

Argentina

Australia

Austria

Belgium

Brazil

Bulgaria

Canada

Chile

China

Colombia

Croatia

Czech Republic

Denmark

Mexico

Netherlands

New Zealand

Norway

Peru

Poland

Portugal

Romania

Russia

Saudi Arabia

Singapore

Slovakia

South Africa

Finland

France

Germany

Greece

Hong Kong

Hungary

India

Ireland

Israel

Italy

Japan

Korea

Kuwait

Spain

Sweden

Switzerland

Taiwan

Turkey

UAE

Ukraine

United Kingdom

United States

Venezuela

Oracle E-Business Suite is used in over 150 countries.

http://www.crwflags.com/fotw/images/f/fi.gif

http://www.crwflags.com/fotw/images/h/hu.gif

http://www.crwflags.com/fotw/images/i/in.gif

http://www.crwflags.com/fotw/images/k/kw.gif

http://www.crwflags.com/fotw/images/n/no.gif

http://www.crwflags.com/fotw/images/r/ru.gif

http://www.crwflags.com/fotw/images/s/se.gif

http://www.crwflags.com/fotw/images/a/ae.gif

25

Improve Period Close Efficiency Accelerate Close Processes Across Multiple Ledgers

Ledger Set Multi-ledger processing:

• Open/close periods

• Post and reverse journals

• Translate and revalue balances

• Submit standard reports

• Submit financial statements

Benefits:

Perform multi-ledger processing with one click

Better performance with parallel processing

Close your books faster


26

Oracle Business Intelligence Publisher

Make Better Decisions with Greater Insight BI Publisher


27

Manage Subledger Close Process

Consolidate Financial Data

Report Results

Make Better Decisions with Greater Insight Pre-Built Integration with Oracle Hyperion Financial Close Suite


28

EBS General Ledger

Load Metadata

& Drill back

Hyperion Planning

Essbase

Make Better Financial Performance Decisions Pre-built Budgeting integration with Hyperion Planning


29


Procure to

Pay

Credit to

Cash

Cash &

Treasury

Management

Financial

Control &

Reporting

Financials

Architecture

Financials

12.1 Travel &

Expense

Management


30

Oracle E-Business Suite Financials Procure-to-Pay Imperatives

REDUCE transaction processing costs

STRENGTHEN policy compliance

STREAMLINE procure-to-pay process


31

Reduce Transaction Processing Costs New Invoice Model

Invoice

Header

Invoice

Lines

Invoice Workbench Mirrors Physical Invoice


32

Reduce Transaction Processing Costs New Invoice Model

Benefits

Improve accuracy

Increased flexibility

Reduces auditing costs

New Features

• Match lines to PO shipment or receipt

• Approve at line level

• Capture additional details on

Oracle Projects and Oracle Assets

(e.g., serial number, item descriptions)

• Line level tax, freight, and

other charges


33

Reduce Transaction Processing Costs With Automated Processes

Imaging Integration

Benefits

Reduce costs of paper-based

invoices

Reduce data entry errors

Eliminate late fees

Automated Netting of AR and AP Balances

Benefits

Save transaction fees

Reduce bank charges

Improve cash flow

AR

$900

AP

$800

Automatic Replacement of Bank Accounts

Benefits

No need to manually update

each invoice

Prevents processing delays

Ensures timely payments

XXX-XXX-3458

XXX-XXX-8795

Old

New


34

Benefits

Greater automation with straight-through processing (STP)

Cost savings

Enhanced flexibility

Features

• Connects to banks & credit card processors for electronic payments

• Supports all payment formats & flexible payment models

• Integrates with SEPA & Paymentech

• Centralized credit card model with encryption

• 3rd Party Payments

Payment Engine Funds Capture Disbursement

Credit Cards, Direct Debits, EFT Payments

Streamline Payment Processing Oracle Payments


35

Oracle E-Business Suite Financials Credit-to-Cash

Procure to

Pay

Credit to

Cash

Cash &

Treasury

Management

Financial

Control &

Reporting

Financials

Architecture

Financials

12.1 Travel &

Expense

Management


36

Oracle E-Business Suite Financials Credit-to-Cash Imperative

IMPROVE CASH FLOW and increase efficiency

COMPLY with accounting standards and policies

Make BETTER DECISIONS


37

Improve Cash Flow and Increase Efficiency

Line level cash application for

partial payments

Flexible payment plans (loans)

increase collections of

outstanding receivables

Improve

Cash Flow

Increase

Productivity

Work Queue automatically

assigns to Receipts Specialists to

manage and monitor workload

Enhanced performance of key

batch programs ensures high

volume processing


38

Comply with Accounting Standards and Policies

• Partial period revenue recognition and more flexible revrec schedules

• Enhanced COGS and revenue matching

• Payment-based revenue recognition

Revenue

Recognition Rules

Complex Tax

Rules

• EBS Tax integration for global tax compliance

• Golden Tax Adapter for China VAT support


39

Make Better Decisions

• 360 degree view of your

customer during credit review

(internal and external data)

• Improve credit approval

decisions with financial trends

from previously entered credit

applications

Improve

Credit Decisions

Improve

Collection Strategies

• Improve collection results

with better visibility of

customer accounts and

history

• Execute unique collection

strategies for different

customers based on different

parameters


40

Oracle E-Business Suite Financials Cash and Treasury Management

Procure to

Pay

Credit to

Cash

Cash &

Treasury

Management

Financial

Control &

Reporting

Financials

Architecture

Financials

12.1 Travel &

Expense

Management


41

OPTIMIZE CASH & reduce banking costs

Oracle E-Business Suite Financials Cash and Treasury Management Imperative

AUTOMATE processes

REDUCE RISK


42

Optimize Cash and Reduce Banking Costs

Benefits

Gain greater visibility of overall cash positions

Minimize idle funds

Reduce bank costs

Features

• Centrally monitor & manage

bank balance trends and cash

positions

• Daily an historical positions

• Compare actual versus plan


43

Automate Cash and Treasury Processes

• Centralized reconciliation ensures consistency across the organization

• Flexible matching rules to automatically reconcile transactions streamline reconciliation efforts

Bank

Reconciliation

Cash

Pooling

$

Cash 3

Cash 2

Cash 3

• Flexible cash pooling techniques increase overall investment returns

• Intercompany funding with the ability to track loan balances and interest between internal parties


44

Reduce Risk

Features

• Automatically generate accounting entries to comply with IAS 39 and FAS 133 for foreign exchange forward hedging

• Automatically calculate the retrospective effectiveness of hedges, comparing historical gains or losses

• Track effectiveness test results

Benefits

Reduce risk and enforce controls

Reduce income statement volatility


45

Oracle E-Business Suite Financials Travel & Expense Management

Procure to

Pay

Credit to

Cash

Cash &

Treasury

Management

Financial

Control &

Reporting

Financials

Architecture

Financials

12.1 Travel &

Expense

Management


46

Oracle E-Business Suite Financials Travel & Expense Management Imperatives

EXPEDITE expense report processing

CONTROL travel costs

ENFORCE travel policy compliance


47

Expedite Expense Report Processing Oracle Internet Expenses

• Automatic upload of expenses from employee credit cards

• AMEX File Transfer integration automates expense report processing

• Automatic itemization of Visa expenses streamlines expense report entry

Improved

Credit Card Integration

Productivity

Enhancements

• Pre-defined expense templates (allocation sets) ensure rapid expense entry

• Expense allocation across multiple account segments, projects, tasks ensure accurate allocations of expenses

Faster

Approvals

• Parallel approvers allow multiple approvers to approve at the same time

• Document attachments (scanned receipts, meeting agendas, etc.) expedite approvals by managers


48

Streamline Expense Approval iPhone Approvals

• Approvals on-the-go

• Available as an

add-on to iExpenses


49

Reduced paper copies

by $1.4B, decreased

annual CO2 emissions

by 2,000 tons

What Customers Are Achieving…


Reduced monthly

close time from

17 days to

less than one week

Reduced report

generation times

from 20 days to a

few seconds

Reduced worldwide

closing time from

six to three days

Streamlined accounting

processes from 600 to

≈ 200 processes, and

reduced # of GL lines by ≈ 60%

Moved to a single

global instance using

a shared service center

that spans 30 countries

50

Oracle E-Business Suite Release 12.1 Live Customers


51

Oracle E-Business Suite Release 12.1 Expand Value when Upgrading

I/PM Integration BI Analytics User Productivity Kit

GRC Suite Hyperion Integration XBRL Reporting

GRC Manager

GRC Intelligence

GRC Controls

• Planning

• Financial Management

• Financial Close Management

• Disclosure Management


52


12.1 Overview

Agenda

Key Takeaways


53

• Fragmented, decentralized systems

• Disparate policies, processes, and controls

• Regional centralization

• Some standardization, but

mostly manual processes

• Consolidated systems

• Standardized policies,

processes and controls

• Automated processes

Co

mp

lex

ity &

Co

sts

Complexity Drives Up Costs


54

Business Requirement 12.1 Capabilities

Accelerate productivity

Improved user interface

and automated processes

and BI Publisher reporting

Drive consistent, integrated best practices

12.1 Financials Shared Services

Global standards and international capabilities

Central, global financial

architecture that meets

local compliance

In Summary Operational Excellence in Global Financial Management


55

R12 R12.1 EBS 12.x

Enterprise

9.0

Enterprise

9.1

Enterprise

9.x

EnterpriseOne

8.12

World

A9.1 EnterpriseOne

9.0

World

A9.2

Fusion Applications

1.0

Applications Unlimited Proven Ongoing Innovation for all Product Lines

CY 06 07 08 09 10 11 12

Apps Unlimited

Announced

World

A9.x

E-One 9.x

R12.1.2 R12.1..3

56

Key Takeaways

Significant Momentum around Release 12.1

– Compelling business value customers should evaluate now

– Skilled and trained partner ecosystem

– Large number of customers either implementing or live

Continued investment in E-Business Suite Releases

– Functional and Technical Innovation

– Application Integration

– Investments to Lower the TCO

Flexibility and Choice

– Uptake new capabilities within E-Business Suite

– Take advantage of integration to other Oracle products

– Build a roadmap driven by business value for your organization


58

Questions and Answers

- Atlanta OAUGatloaug.communities.oaug.org/.../Presentations/Oracle_082313.pdfFixed Assets...

Documents

Transcript of - Atlanta OAUGatloaug.communities.oaug.org/.../Presentations/Oracle_082313.pdfFixed Assets...