E-Business Suite

Release 12
The Global Business Release

Release 12 Enhancements in Financials

 R12 New Features in Financials

• Oracle General Ledger

• Oracle Payables
• Oracle Cash Management
• Oracle Assets
• Oracle Receivables
• Tax Manager (E-Business Tax)

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R12 New Features in Financials

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 R12 New Features in Financials

• Oracle General Ledger

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 Overview

• Oracle General Ledger delivers extraordinary enhancements in

this release so you can maximize accounting process efficiencies
across your enterprise while still achieving a high level of
information and setup security.

• Fundamental improvements in Oracle General Ledger enable

you to perform simultaneous accounting for multiple reporting
requirements and allow superusers to access and process data
for multiple ledgers and legal entities at the same time powering
ledger and reporting shared services.

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 Features

• Accounting Setup
• Improved Processing Efficiency
• Data Security
• Auditability
• Others

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 Accounting Setups

• Simultaneous Accounting for Multiple Reporting Requirements

Oracle General Ledger simplifies the simultaneous
management of the accounting for all of the different
reporting requirements in this latest release.

• Centralized Accounting Setup

The Accounting Setup Manager is a central location to define
your accounting-related setup across all financial applications.

• Enhanced Reporting Currency Functionality

Multiple Reporting Currencies functionality is enhanced to
support all journal sources. Reporting sets of books are now
simply reporting currencies.

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 Improved Processing Efficiency

• Simultaneous Data Access to Multiple Legal Entities and Ledgers

You can access multiple legal entities and ledgers when you log
into Oracle General Ledger using a single responsibility.

• Simultaneous Opening and Closing of Periods for Multiple Ledgers

The Open and Close Periods Programs has multiple
enhancements. You are able to run any of the Open and Close Periods
Programs from the Concurrent Manager.

• Cross-Ledger and Foreign Currency Allocations

You are able to allocate financial data from one or more ledgers to
a different target ledger.

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 Improved Processing Efficiency
• Simultaneous Currency Translation of Multiple Ledgers
If you manage multiple ledgers, you can run the Translation
program for multiple ledgers simultaneously.

• Financial Reporting Across Ledgers

You are able to run Financial Statement Generator (FSG) reports
for multiple ledgers simultaneously.

• Automatic Journal Copy

You are able to automatically copy an existing journal batch to
create a new journal batch with the same journals and journal
lines.

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 Improved Processing Efficiency

• Streamline Automatic Posting

AutoPost Criteria can be shared across ledgers that have the
same chart of accounts and calendar.

• Replacement for Disabled Accounts

You can prevent transactions that include the account from erroring
during journal import by defining a replacement account for the
disabled account.

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 Data Security

• Data Security across Legal Entities and Ledgers

Oracle General Ledger provides you with flexible ways to secure
your data by legal entity, ledger, or even balancing segment
values or management segment values.

• Management Reporting Security

You can designate any segment (except the natural account
segment) of your chart of accounts to be your management segment.

• Control Accounts
You are able to control data entry to an account by ensuring it
only contains data from a specified journal source.

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 Auditability
• Accounting and Reporting Sequencing
You can assign sequence numbers to journals during the
posting process to ensure that finalized journal entries are
properly sequenced.

• Journal Line Reconciliation

This feature enables you to reconcile journal lines that
should net to zero.

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 Others

• Entered Currency Reporting and Analysis

Oracle General Ledger tracks the balances that are entered in
your ledger’s primary currency.

• Foreign Currency Recurring Journals

You can use Recurring Journals to create foreign currency
journals. This enables you to pre-define journals that are recurring
in nature and that are in foreign currencies.

• GL Standard Reports Integration With XML Publisher

Oracle General Ledger’s Account Analysis, General Journals and
Trial Balance standard reports are now integrated with XML
Publisher.

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R12 New Features in Financials

Oracle Payables

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 Overview

• Oracle Payables provides the integration and flexibility you need to

efficiently manage disbursements while keeping strong controls over
matching, budgets, approval processes, and payments.

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 Features
• Multi-Org Access Control
• New User Interface for Supplier Entry and Maintenance
• Introduction of Invoice Lines
• Enhanced Invoice Approval Includes Line Level
Approval
• Invoice Processing for Contract Financing, Retainage,
and Progress Terms
• Enhancements to Payment Banks, Branches, and
Accounts
• Accounts Receivable / Accounts Payable Netting

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 Multi-Org Access Control
• Multi-Org Access Control
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.

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 New User Interface for Supplier Entry

• New User Interface for Supplier Entry and Maintenance

This new user interface presents a clear distinction between the
supplier’s company details and terms and controls for the trading
relationship.

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 Introduction of Invoice Lines

• Introduction of Invoice Lines

Oracle Payables incorporates Invoice Lines into the invoice
model. Merged into the current invoice transaction business flows,
Invoice Lines supports the representation of the goods or
services as well as tax, freight, and other charges as lines with
distributions tied to each line.

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Enhanced Invoice Approval Includes Line Level Approval

• 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.

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 Invoice Processing for Contract Financing,
Retainage, and Progress Terms

• Complex payment terms and conditions for fixed price contracts is

captured during the procurement contract flow.

• Financing: Advances and Progressive Contract Financing

Oracle Payables ensures that the amounts financed are
recovered by automatically applying financing to subsequent
invoices per the specific terms captured in the purchase order.

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 Invoice Processing for Contract Financing,
Retainage, and Progress Terms

• Retainage and Retainage Release

As the agreed event occurs the supplier requests the amount
retained and payment is made to release it. Payables
automatically retains per the purchase order on invoices coming
in and supports the retainage release and payment process.

• Invoices for Progress

Invoices representing progress are matched to the purchase
order, updating the purchase order with the progress.

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 Enhancements to Payment Banks, Branches,
and Accounts

•The Bank Account is centrally defined, managed and secured and

includes the legal ownership and operating unit access for each bank
account.

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 Payment Process Enhancements

• Payment processing is significantly enhanced with this release. Along

with a new user interface, the management and visibility of the payment
process are much more robust and easier to use.

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Accounts Receivable / Accounts Payable Netting

• Netting Agreements add trading partner terms as well as

deploying company controls. A selection program automatically
pulls information from Oracle Receivables and Oracle Payables
taking into consideration discounts, late fees, and withholding taxes
prior to determining the final netting amount.

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 R12 New Features in Financials

• Oracle Cash Management

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 Overview

•Oracle Cash Management is an enterprise-wide solution for managing

liquidity and controlling cash.

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 Features

• Bank Account Model

• Multi-Org Access Control
• Subledger Accounting
• Bank Account Balances and Interest Calculation
• Bank Account Transfers
• Bank Statement Accounting
• Bank Account Signing Authorities

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 Bank Account Model
• It provides a single access point for defining and managing internal
bank accounts for Oracle Payables, Oracle Receivables, Oracle Payroll,
Oracle Cash Management, and Oracle Treasury. Bank account access
for each application is explicit for internal security and control purposes.

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 Multi-Org Access Control

• 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 for users no

longer have to switch applications responsibilities when processing
transactions for multiple operating units at a time.
 Subledger Accounting

• Oracle Cash Management utilizes Oracle Subledger Accounting for

setting up accounting rules and for generating journal entries related
to Cash Management transactions.

• Users can also add detailed transaction information to journal headers

and lines. Detailed subledger accounting journals are available for
analytics, auditing, and reporting. they are summarized, transferred,
imported and posted to Oracle General Ledger.
 Bank Account Balances and Interest Calculation

• Flexible reporting tools are available to view all this centrally stored
balance history for trend analysis as well as to compare actual versus
expected balances based on daily cash position projections.

• The system allows the user to verify interest amounts charged or

credited by their banks based on balance history and user-defined
interest rate schedules.
 Bank Account Transfers

• This feature allows users to create these types of 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 positioning.
 Bank Statement Accounting

• This feature allows users to define mapping rules that can

automatically create and reconcile transactions in Oracle Cash
Management based on reported prior-day bank statement lines.

• This feature significantly reduces reconciliation issues associated with

repetitive first notice items like bank fees or bank account interest.
 Bank Account Signing Authorities

• This feature allows Oracle Cash Management users to enter,

maintain, and report on those people in their organizations with bank
account signing authority. Users are able to indicate single and joint
signing limits for each bank account as well as signer group
categories, effective dates, approval status, and other relevant
information.
 R12 New Features in Financials

• Oracle Assets

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 Overview

• Oracle Assets, a comprehensive asset management solution, ensures

maintenance of accurate property and equipment inventory as well as
optimal accounting and tax strategies.

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 Features

• Enhanced Mass Additions Interface for Legacy

Conversions
• Automatic Preparation of Mass Additions
• Flexible Reporting using XML Publisher
• Automatic Depreciation Rollback
• Enhanced Logging for Asset Transactions and
Programs
Enhanced Mass Additions Interface for Legacy Conversions

• Additional attributes are available in the Mass Additions interface to

ease legacy data conversions. Attributes such as asset life,
depreciation method, prorate convention; bonus rule ceiling name,
depreciation limit, and others can now be directly imported from your
legacy system instead of being derived from asset category setups.
 Automatic Preparation of Mass Additions

• A set of extensible public API’s is available to automatically prepare a

mass addition line for all required attributes such as depreciation
expense account, asset category, location etc. with the goal of
minimizing manual intervention by the user in the mass additions
workbench.
 Flexible Reporting using XML Publisher

• Oracle Assets leverages the Oracle XML Publisher technology to

support major asset transaction reports. With XML Publisher, you can
display reports in variable formats by creating your own templates
using familiar tools such as Acrobat, Word and Excel.
 Automatic Depreciation Rollback

• In new Release the intermediate manual step of rolling back

depreciation for the entire book in order to process further
adjustments on selected assets is no longer necessary. As before
users may submit depreciation for the entire book prior to closing the
period.

• Oracle Assets automatically rolls back the depreciation on just the

selected assets (instead of the whole book) and allows the
transaction(s) to be processed normally.
Enhanced Logging for Asset Transactions and Programs

• Through the common logging architecture, Oracle Assets ensures a

common repository for all log messages within and outside the
product. This reduces resource usage on the file system for
excessively large log files.
 R12 New Features in Financials

• Oracle Receivables

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 Overview

• 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.
 Features

• Line Level Cash Applications

• Refunds Enhancements
• Late Charges
• Customer Standard User Interface Redesign
 Line Level Cash Applications

• The Line Level Cash Applications solution allows the application of

receipts to specific transaction items such as individual lines, groups
of lines, or tax or freight buckets.
 Refunds Enhancements

• Oracle Receivables is fully integrated with Oracle Payables to deliver

a seamless, automated process to generate check and bank account
transfer refunds for eligible receipts and credit memos.
 Late Charges

• Receivables delivers enhanced Late Charges functionality enabling

the creation of standard late charge policies that can be assigned to
customer accounts or account sites.
 Customer Standard User Interface Redesign

• The Customer Standard form has been redesigned as an HTML-

based user interface to provide a more streamlined and intuitive
customer data management flow. Customer data entry is tightly
coupled with data quality management tools to maintain the integrity of
customer data.
 R12 New Features in Financials

• Oracle E-Business Tax

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 Overview

• Oracle E-Business Tax is a new infrastructure for 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 Oracle E-Business
Suite business flows through one application interface.
 Features

• Events and Configuration Owner Options

• Tax Configuration Manager
• Tax Determination Services
• Centralized Tax Record Repository for Audit and
Reporting
• Tax Reporting
• Tax Simulator
 Events and Configuration Owner Options

• Users have greater granularity in defining tax control options.

• A configuration owner can define control options for a tax event class
or at a lower level such as a particular application document. Control
options include:

I. Define rounding level

II. Allow override of calculated taxes
III.Allow manual tax lines to be entered
IV. Allow recalculation of manual tax lines
V. Allow self-assessment for imported documents
 Tax Configuration Manager

• The Tax Configuration Manager component is responsible for creating

and maintaining the structural foundation of tax, the building blocks.
This tax content information such as taxes, tax jurisdictions, fiscal
classifications, tax rates, tax rules, is stored in a centralized
repository.
 Tax Determination Services
• The Tax Determination Services component calculates transaction
taxes based on transaction details and tax setup information.

• This component is involved in the following:

I. Automatically determining which taxes are applicable for the

transaction based on the place of supply, the tax registrations of the
parties involved, and other applicability rules.
II. Determining how they should be calculated.
III. Producing the results from the calculation.
Centralized Tax Record Repository for Audit and Reporting

• Tax transactions and all the noteworthy tax information for each
transaction is recorded in a centralized Tax Record Repository.

• In new Release historical and current tax records are available in the
new Tax Record Repository for reporting purposes.
 Tax Reporting

• Tax authorities around the world have promulgated a substantial

variety of requirements pertaining to the communication of tax
information, making tax compliance both varied and complex.

• Tax Reporting is flexible enough to provide data in a user-friendly

format that allows the standard and identified country specific
requirements to be met.
 Tax Simulator
• A user interface is provided that allows users to enter transactions,
such as a Purchase or Sales Invoice, and view the results of tax
calculation. This is a valuable tool for tax managers who can use this
interface to ensure that the tax configuration, including any rules that
have been setup, provide the expected results.

• The Tax Simulator enables the user to;

I. View tax lines for ‘simulated’ transactions
II. Drill down into an audit trail of information for each tax line, identifying
the
III. Tax rules that were used