<Insert Picture Here> Oracle E-Business Suite Financials Release 12.1 Overview

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2 <Insert Picture Here> Oracle E-Business Suite Financials Release 12.1 Overview Stephen Ouellette, CPA Solutions Consultant, Applications

3 Agenda Complexity = Increased Costs 12.1 Overview Key Takeaways 3

4 Complexity & Costs Complexity Drives Up Costs 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 4

5 Agenda Complexity = Increased Costs 12.1 Overview Key Takeaways 5

6 Oracle E-Business Suite Financials Financial Control & Reporting Financials Architecture Travel & Expense Management Financials 12.1 Cash & Treasury Management Procure to Pay Credit to Cash 6

7 Oracle E-Business Suite Financials Financial Control & Reporting Financials Architecture Travel & Expense Management Financials 12.1 Cash & Treasury Management Procure to Pay Credit to Cash 7

8 Oracle E-Business Suite Financials Financials Architecture Imperatives DRIVE CONSISTENCY standardization INCREASE EFFICIENCY shared services ADAPT changing business needs 8

9 Drive Consistency and Standardization Going Beyond the Traditional Financials Architecture Fin Arch Centralized Accounting Dr Cr Centralized Functions: Rules-based Accounting Engine Legal Entity Banking & Payments Global Tax Engine Legal Entity Banking & Payments Global Tax Intercompany Accounting Intercompany 3 rd Party Systems Inventory Purchasing Receivables Payables Projects WIP Multi-Org Access Control 9

10 Drive Consistency and Standardization Centralized Legal Entity Management 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 Benefits Accurate recognition of legal ownership specific to local jurisdictions Comply with laws and regulations Ensure accurate changes to legal data 10

11 Drive Consistency and Standardization Centralized Banking and Payments Centralized setup and maintenance Centralized Bank Payment Account Engine for Funds Capture & Disbursement Payables Receivables Advanced Collections Payroll Cash Management Treasury 11

12 Drive Consistency and Standardization Centralized Banking and Payments Bank accounts owned and managed through Legal Entities Bank Account Legal Entity Operating Unit Payables Treasury Operating Unit Payroll Receivables Operating Unit Payables Payroll 12

13 Drive Consistency and Standardization Centralized Banking and Payments Increased efficiency and control Real-time visibility into cash flows Consistency for shared service centers Easier reconciliation of bank accounts 13

14 Drive Consistency and Standardization Centralized Global Tax Processing Features Configurable rules-based Tax Engine AP Across all E-Business Suite products Integration with Major Tax Vendors (Vertex & Taxware in US) Projects PO Tax Simulator to verify and test setup Benefits Inventory Tax Engine AR Increase efficiency and reduce errors Easily meet global & local tax compliance Other Assets Cash Mgmt 14

15 Drive Consistency and Standardization Centralized Advanced Global Intercompany System Features Centralized intercompany and intracompany accounts setup Automatic generation of accounts Flexible approvals & invoicing options Integration with GL, AP, and AR Benefits Streamline intercompany processing Easy Reconciliation Centralized I/C Account Setup Workflow Enabled Eliminate errors Standardize accounting policies Increase straight through processing with intercompany invoice generation 15

16 Increase Shared Service Center Efficiency Access Multiple Organizations Belgium Holland Denmark Legal Entity Legal Entity Legal Entity Transaction Processing Accounting Belgium Operating Unit Holland Operating Unit Responsibility Responsibility Single Responsibility Denmark Operating Unit Responsibility Invoice Entry Billing, Dunning & Collections Procurement Order Management Payments Reports 16

17 Increase Shared Service Center Efficiency Lower Transaction Costs ONE GLOBAL TAX ENGINE CENTRALIZED ACCESS Centrally managed rules Consistent tax services France Legal Entity Italy Legal Entity U.S. Legal Entity Business Unit Business Unit Business Unit Single Sign-On UNIFIED BANK ACCOUNT MODEL CENTRALIZED PAYMENTS & FUNDS CAPTURE ENGINE Legal Entity Business Unit Business Unit Business Unit Receipts Central Engine Payments 17

18 Oracle E-Business Suite Financials Financial Control & Reporting Financials Architecture Travel & Expense Management Financials 12.1 Cash & Treasury Management Procure to Pay Credit to Cash 19

19 Oracle E-Business Suite Financials Financial Control and Reporting Imperatives Meet GLOBAL ACCOUNTING STANDARDS Increase OPERATIONAL EFFICIENCY Better Decisions with GREATER INSIGHT 20

20 Meet Global Accounting Standards Ledger Architecture with Centralized Accounting Engine Legal Entity Multiple Dr. R&D ledgers Costs maintain 6,000 USD GAAP multiple accounting US COA representations Cr. Payables 6,000 USD US Calendar USD US Ledger Dr. Asset French 9,000 Rules EUR French Plan Comptable Ledger Cr. Payables French 9,000 Calendar EUR EUR Centralized Accounting Engine Payables Invoice 21

21 Meet Global Accounting Standards Centralized Accounting Engine New Features Centralized, configurable accounting rules Consistent user interface across subledgers Legal Entity US Ledger French Ledger Benefits Accounting Consistency Reduced Costs Detailed, Auditable Journals Simultaneous Multi-GAAP Representations Complete Audit Trail Centralized Accounting Engine Oracle Subledgers Fixed Assets Purchasing Payables Receivables Projects 22

22 Meet Global Accounting and Reporting Standards Europe European Community VAT Changes for 2010 Belgium Annual VAT Report File Format v1.3 Israel Enhanced VAT Report China China Golden Tax Adapter Enhancements Italy Italy Annual VAT and Withholding Extract Brazil Brazilian Electronic Collection Document Process (DDA) Argentina Argentina Simplified Regime (Monotributo) Withholding Tax File 856 India Enhanced VAT for Flexible Recovery Schedule VAT Statutory Accounting & Reporting for Non- Shippable Items Japan Asset Impairment for Japan Tax Reform 2007 Asset changes to support Japanese legislation changes 23

23 Localizations Comply with Local Rules and Regulations Argentina Finland Mexico Spain Australia France Netherlands Sweden Austria Germany New Zealand Switzerland Belgium Greece Norway Taiwan Brazil Hong Kong Peru Turkey Bulgaria Hungary Poland UAE Canada India Portugal Ukraine Chile Ireland Romania United Kingdom China Israel Russia United States Colombia Italy Saudi Arabia Venezuela Croatia Japan Singapore Czech Republic Korea Slovakia Denmark Kuwait South Africa Oracle E-Business Suite is used in over 150 countries. 24

24 Improve Period Close Efficiency Accelerate Close Processes Across Multiple Ledgers Multi-ledger processing: Open/close periods Ledger Set 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 25

25 Make Better Decisions with Greater Insight BI Publisher Oracle Business Intelligence Publisher 26

26 Make Better Decisions with Greater Insight Pre-Built Integration with Oracle Hyperion Financial Close Suite Manage Subledger Close Process Consolidate Financial Data Report Results 27

27 Make Better Financial Performance Decisions Pre-built Budgeting integration with Hyperion Planning Hyperion Planning Essbase Load Metadata & Drill back EBS General Ledger 28

28 Oracle E-Business Suite Financials Financial Control & Reporting Financials Architecture Travel & Expense Management Financials 12.1 Cash & Treasury Management Procure to Pay Credit to Cash 29

29 Oracle E-Business Suite Financials Procure-to-Pay Imperatives REDUCE transaction processing costs STREAMLINE procure-to-pay process STRENGTHEN policy compliance 30

30 Reduce Transaction Processing Costs New Invoice Model Invoice Workbench Mirrors Physical Invoice Invoice Header Invoice Lines 31

31 Reduce Transaction Processing Costs New Invoice Model 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 Benefits Improve accuracy Increased flexibility Reduces auditing costs 32

32 Reduce Transaction Processing Costs With Automated Processes Imaging Integration Automatic Replacement of Bank Accounts Automated Netting of AR and AP Balances Old XXX-XXX-3458 New XXX-XXX-8795 $900 AR $800 AP Benefits Reduce costs of paper-based invoices Reduce data entry errors Eliminate late fees Benefits No need to manually update each invoice Prevents processing delays Ensures timely payments Benefits Save transaction fees Reduce bank charges Improve cash flow 33

33 Streamline Payment Processing Oracle Payments 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 Benefits Greater automation with straight-through processing (STP) Cost savings Enhanced flexibility 34

34 Oracle E-Business Suite Financials Credit-to-Cash Financial Control & Reporting Financials Architecture Travel & Expense Management Financials 12.1 Cash & Treasury Management Procure to Pay Credit to Cash 35

35 Oracle E-Business Suite Financials Credit-to-Cash Imperative IMPROVE CASH FLOW and increase efficiency COMPLY with accounting standards and policies Make BETTER DECISIONS 36

36 Improve Cash Flow and Increase Efficiency Improve Cash Flow Increase Productivity Line level cash application for partial payments Flexible payment plans (loans) increase collections of outstanding receivables Work Queue automatically assigns to Receipts Specialists to manage and monitor workload Enhanced performance of key batch programs ensures high volume processing 37

37 Comply with Accounting Standards and Policies Revenue Recognition Rules Complex Tax Rules Partial period revenue recognition and more flexible revrec schedules Enhanced COGS and revenue matching Payment-based revenue recognition EBS Tax integration for global tax compliance Golden Tax Adapter for China VAT support 38

38 Make Better Decisions Improve Credit Decisions Improve Collection Strategies 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 collection results with better visibility of customer accounts and history Execute unique collection strategies for different customers based on different parameters 39

39 Oracle E-Business Suite Financials Cash and Treasury Management Financial Control & Reporting Financials Architecture Travel & Expense Management Financials 12.1 Cash & Treasury Management Procure to Pay Credit to Cash 40

40 Oracle E-Business Suite Financials Cash and Treasury Management Imperative OPTIMIZE CASH & reduce banking costs AUTOMATE processes REDUCE RISK 41

41 Optimize Cash and Reduce Banking Costs Features Centrally monitor & manage bank balance trends and cash positions Daily an historical positions Compare actual versus plan Benefits Gain greater visibility of overall cash positions Minimize idle funds Reduce bank costs 42

42 Automate Cash and Treasury Processes Bank Reconciliation Cash Pooling Cash 2 Cash 3 Cash 3 Centralized reconciliation ensures consistency across the organization Flexible matching rules to automatically reconcile transactions streamline reconciliation efforts $ Flexible cash pooling techniques increase overall investment returns Intercompany funding with the ability to track loan balances and interest between internal parties 43

43 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 44

44 Oracle E-Business Suite Financials Travel & Expense Management Financial Control & Reporting Financials Architecture Travel & Expense Management Financials 12.1 Cash & Treasury Management Procure to Pay Credit to Cash 45

45 Oracle E-Business Suite Financials Travel & Expense Management Imperatives EXPEDITE expense report processing CONTROL travel costs ENFORCE travel policy compliance 46

46 Expedite Expense Report Processing Oracle Internet Expenses Improved Credit Card Integration Productivity Enhancements Faster Approvals 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 Pre-defined expense templates (allocation sets) ensure rapid expense entry Expense allocation across multiple account segments, projects, tasks ensure accurate allocations of expenses Parallel approvers allow multiple approvers to approve at the same time Document attachments (scanned receipts, meeting agendas, etc.) expedite approvals by managers 47

47 Streamline Expense Approval iphone Approvals Approvals on-the-go Available as an add-on to iexpenses 48

48 What Customers Are Achieving Reduced paper copies by $1.4B, decreased annual CO2 emissions by 2,000 tons Reduced report generation times from 20 days to a few seconds Reduced worldwide closing time from six to three days Reduced monthly close time from 17 days to less than one week 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 49

49 Oracle E-Business Suite Release 12.1 Live Customers 50

50 Oracle E-Business Suite Release 12.1 Expand Value when Upgrading I/PM Integration BI Analytics User Productivity Kit GRC Intelligence GRC Manager GRC Controls Planning Financial Management Financial Close Management Disclosure Management GRC Suite Hyperion Integration XBRL Reporting 51

51 Agenda Complexity = Increased Costs 12.1 Overview Key Takeaways 52

52 Complexity & Costs Complexity Drives Up Costs 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 53

53 In Summary Operational Excellence in Global Financial Management Business Requirement Drive consistent, integrated best practices 12.1 Capabilities 12.1 Financials Shared Services Global standards and international capabilities Central, global financial architecture that meets local compliance Accelerate productivity Improved user interface and automated processes and BI Publisher reporting 54

54 Applications Unlimited Proven Ongoing Innovation for all Product Lines R12 R12.1 R R EBS 12.x Enterprise 9.0 Enterprise 9.1 Enterprise 9.x EnterpriseOne 8.12 World A9.1 EnterpriseOne 9.0 World A9.2 E-One 9.x World A9.x Apps Unlimited Announced Fusion Applications 1.0 CY

55 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 56

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57 Questions and Answers 58

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