Oracle Financials Globalization E-Business Suite Release 12.1 and beyond. Jacques Bouchet Applications Global Strategy

Transcription

1 Oracle Financials Globalization E-Business Suite Release 12.1 and beyond Jacques Bouchet Applications Global Strategy

2 The World is Changing Like Never Before The E7 will be 25% larger than the G7 by 2050 in terms of market exchange rate (MER), or 75% larger in terms of purchasing power parity (PPP). Relative Size of G7 and E7 Economies BUSINESS IMPLICATIONS $ Billions (2004 Rea al Values) MER G MER E PPP 2050 PPP Companies must compete in local markets with localized solutions. Statutory financial reporting Local tax Local valuation and costing Local accounting Local statutory reporting Local payments PriceWaterhouseCoopers, The World in 2050

3 Doing Business Globally is Complex Top Drivers of Complexity 1 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 Direct impact on Finance 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: 9 th Annual Global CEO Survey Globalization and Complexity; PwC 2006 Source: PWC, 9 th Annual Global CEO Survey

4 Today s CFO Agenda GLOBALIZATION Today s workforce, customers, suppliers, and competitors have all become global COMPLEXITY AND COSTS Globalization brings complexity with it, and unnecessary complexity drives up costs INNOVATION AND GROWTH Not just any growth, but growth that creates value GOVERNANCE, RISK & COMPLIANCE Companies are under pressure to do more than just meet the letter of the law

5 Meet the Challenges of Globalization Oracle s Globalization Solution Requirement Solution Oracle Capabilities Extend core business processes and international support Ensure compliance and adapt quickly to regulatory change Comply with local business practices, rules, and regulations Manage business systems globally Drive compliant business processes Deploy countryspecific capabilities Standards-based business platform Native global platform Extensible Business Objects Global financial engines ebtax BI Publisher Subledger Accounting Payment Engine Localizations Translations User-definable options

6 <Insert Picture Here> Release Twelve The Global Business Release: A New Financial Architecture

7 Global Business Release Oracle s Globalization Solution Localizations Localizations: Comply with local business practices, rules, and regulations Financial Management Applications Human Capital Management Supply Chain Management Applications: Deliver best practice business processes Legal Entities Ledgers Subledger Accounting Global Architecture Tax Engine Inter Company Payments Engine Multi Org Access Global Architecture: Adapt quickly to changing global requirements Global Platform Common Information Model Global Platform: Extend core business processes and international support Data Formats Languages BI Publisher SOA AIA

8 Localizations Delivery Model Oracle s Globalization Solution Localizations Product Localizations * Applications Delivered in product, by Development organization Financial Management Human Capital Management Supply Chain Management Add-on Localizations * Global Architecture Delivered via Metalink, by Regional Field Centers Accounting Engine Bank Model Ledgers MDM Payments Engine Tax Engine Partner Localizations Global Platform Delivered by Partners Common Information Model Data Formats Languages Reporting SOA AIA * Included in standard product license

9 Global Architecture Overview This presentation: focused on Architecture Content Localization coverage Not covering: Over 300 new features in Release 12.0 Additional 270 features in Release new products in Release 12.1 Analytics Fusion Middleware

10 Global Financial Architecture 7 Major Initiatives 1. Legal Entities Ledger and Ledger Sets 2. Subledger Accounting 3. Tax Engine 4. Intercompany 5. Bank Model 6. Multi-Org Access Control 7. BI Publisher Dr Cr Multi-Org Access Control Tax Engine Ledger General & Ledger Sets Subledger Accounting (SLA) Inventory Inter Company Receivables Projects Bank Model Work in Process Purchasing Payables

11 Legal Entities <Insert Picture Here>

12 Legal Entity: Your Registered Companies Holding Company Beijing Oracle Software system OARDC Beijing Hangzhou Office (Registered Branch) Guangzhou Office (Registered Branch) Shanghai Office (Registered Branch) Legal Entities Registered Branches Locations OARDC Shanghai team

13 LEs: Why and What? Why We Care LEs pay the taxes - need tax registrations Trade between LEs needs intercompany LEs own the money and bank accounts LEs file the accounts, take care of accounting LEs comply with whatever needs compliance: legal in LE What we ve done Addresses, Officers, etc. Enabled First Party stamp Added Establishments: map Registrations to Authorities GRE/LE not touched Authorities as TCA parties LE Configurator

14 Where LE fits in Transaction Taxes - Complies & Files, Pays Registrations with Authorities Establishments Files Registrations with Authorities Files Exists Locally Actual Registered Companies, etc. Legal Entity Accounts for itself in a Ledger or BSVs Ledger Maintains its Subledger Documents in many OUs Default Legal Context (DLC) Business Group GRE/LE Et Cetera, 11i Operating Units Legal Entity: Vehicle for compliance

15 Get the LE right - compliance falls into place Transaction Taxes - Complies & Files, Pays Actual Registered Companies, etc. Let s put LEs to work Business Isolate legal compliance from management needs Track your registered companies Make your compliance flow more easily Group GRE/LE Maintains Legal its Subledger Documents Assign Files books, bookkeeping Entity rules and currency management in many OUs to your registered companies Exists Default Legal Locally Context (DLC) Have your registered Accounts companies calculate, file, and pay the transaction taxes they owe Registrations Accounting Setup Manager with Authorities EBusiness Tax Establishments Intercompany Files Bank Model Registrations with Authorities for itself in a Ledger or BSVs Do business between and across your registered companies with full legal documentation Ledger Et Cetera, 11i Operating Units Legal Entity: Have your registered companies use their money to pay their bills, et cetera Vehicle for compliance

16 Ledger Sets <Insert Picture Here>

17 Ledger Sets Global Information At A Glance Ledger Set Share: Chart of Accounts Calendar Ledger C Ledger A Ledger B French Rules Plan Comptable French Calendar EUR US GAAP US COA US Calendar EUR 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 D US GAAP US COA US Calendar AUD Reporting Currency

18 Currency in Twelve 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]

19 Ledger Sets Work them your way Management Ledger Set US Ledger Set Corporate Ledger Set Legal Ledger US1 Legal Ledger US2 Legal Ledger US3 Adjustment Ledger US adjustments eliminations UK Ledger Set Legal Ledger Legal Ledger Adjustment Adj Ledger UK1 UK2 Ledger UK Corporate Automate GAAP / IAS adjustments in an adjusting ledger Eliminate within a Set with GCS Consolidate Formally in FCH Map from a non-conforming COA with a GCS Ledger Set of 26 Ledgers in one country Euro Zone in One Ledger Set My Corporate Set in US GAAP Statutory Set for Country Y Subs Division X Worldwide Ledger Set

20 Data Access, Definition Access Data Access Sets Grant and tailor access to Ledgers and Balancing Segment Values (i.e. Companies, Stores, Branches, etc.) Privileges GL Manager France Ledger View Write Accountant Canada Ledger US Ledger Definition Access Sets separate from data security Share, restrict definitions; privileges to view, modify, etc.

21 SubLedger Accounting <Insert Picture Here>

22 Centralized Set-up Accounting Setup Manager Define Legal Entities & Associated Rules Ensure Complete & Accurate Setup via Online Checklist Define Multiple Ledgers for Rules & Currencies Set Accounting Rules for All EBS Apps One Place to manage Your Global Accounting Rules, Currencies, Ledgers, And Ledger Sets

23 Centralized Accounting Policies Greater Control, Transparency and Auditability General Ledger Internal control and compliance with multiple accounting policies through user-defined accounting rules Dr Cr Centralized Accounting Model, Rules, Engine and Repository 3 rd rd Party Systems 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 3 rd Party Systems Inventory Receivables Projects Work in Process Purchasing Payables Streamline closing process with common posting engine Auditable and transparent entries accessible with full drilldown

24 Subledger Accounting Centralized Rules, Common Repository: Global Control French Rules Plan Comptable French Calendar EUR Ledger Dr Subledger Accounting Payables Invoice What it is Accounting Rules SarBox & 8 th Dir. User Editable Subledger Daybooks Some Benefits Faster, Easier Reconciliation Corporate Rules = Accounting Standardization (Journals) Local Rules = Cr Subledger Balancing Cr Reports, inquiries, open items, et cetera Multiple Representations Common Posting to GL Ledgers Real time or Periodic Improved Local Compliance Automate Apples to Apples Adjustments Improved Auditability Improved Internal Control

25 Subledger Accounting Transaction 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 Reconciliation Platform In accordance with the Underlying Records Event Class: Invoices Event: Invoice Approved Ledger: France (EUR) GL Date: 20-Sep-2005 Description: Office supplies Type Account Description Debit Credit Asset purchase Paris: furniture 10,000 Misc expense Paris: supplies 400 Misc expense Nantes: supplies 100 Misc expense Nice: supplies 300 VAT ,836 Accounts Payable ABC Supplies 12,636 12,636 12,636

26 Multiple Accounting Representations Global Compliance Statutory and Stock Market French Rules Plan Comptable French Calendar EUR Ledger A Ledger B US GAAP US COA US Calendar EUR Multiple Ledgers or Dr Cr Subledger Accounting Payables Invoice Single subledger transaction can create multiple accounting representations and in multiple currencies Chose to use an alternative Ledger - or just an Adjustment Ledger or segment

27 EBusiness Tax <Insert Picture Here>

28 Centralized Global Tax Less Complex Global Tax Compliance Business Needs Automation Constant Changes in Tax Laws and Regulations Local Compliance Tax content for certain countries Vertex and Taxware integration for U.S. Integrity checks during setup process Date effective setup Solution Tax rules flow for change or creating rules Tax simulator for setup, rules, and transactions Tax registrations and tax reporting codes Tax lines determine applicable taxes Configurable tax reporting templates 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.

29 Transactions Oracle E-Business Tax Processing taxes for transactions and reporting Purchasing Payables Sales Orders Parties Places Products Processes Compliance, Assurance Determine Regimes Efficiency, Global Visibility Single Interface for Transactions Applicable Taxes Tax Status & Rate Taxable Basis Calculate Tax Amount Transparent Integration with Tax Partner Services Extensible Service Oriented Architecture Receivables Tax Reports - PDF, HTML, RTF - Security enabled Tax Transactions Taxes, Rules

30 <Insert Picture Here> Advanced Intercompany AGIS

31 Advanced Global Intercompany System Address the Top Barrier to a Fast Close Web UI Open Interfaces / API Excel (Web ADI) Advanced Global Intercompany System Generate subledger invoices Control transaction entry with Intercompany Calendar Fully Configurable Approval Rules Flexible Security Model Centrally defined Intercompany Accounts Subledger Invoices & Documents Online Reconciliation Reporting XML Publisher Reports Dr Cr General Ledger Subledger Accounting Receivables Payables

32 <Insert Picture Here> Banking Model Payment Engine

33 Centralized Banking Shared Services Disbursements OU A LE OU B OU C Bank account is now associated with LE entity rather than Operating Unit Single bank account serves multiple Operating Units Inventory Receivables Projects Any and all Operating Units associated with a ledger can be permitted to use the bank account Work in Process Purchasing Payables Assets Plus Centralized Credit Card Model Credit Card Encryption Supplier & Customer Banks in TCA

34 Bank Model: Example of what you can do Pay invoices from different OUs with 1 instruction OU A New Payments Module New Bank Model New Bank & Credit Card Features OU B OU C Single Payment Instruction Bank Payments Invoices Sub Ledger Accounting

35 Banks Define Owner of Bank Account Legal Entity

36 Banks Grant OU Access to Bank Account Operating Units

37 <Insert Picture Here> Multi-Org Access Control

38 MOAC: Multi-Org Access Control Role based access to Operating Units Perform multiple tasks across operating units without changing responsibilities Belgium Holland Legal Entity Legal Entity Belgium Holland Operating Unit Operating Unit Responsibility Single Responsibility Denmark Legal Entity Denmark Operating Unit Responsibility Functional Tasks Order Management Dunning, Collections, Billing Requisition, Demand & Purc Receiving & Drop Ship Invoice Receipt, Disburseme Customer Data Management Accounting Setup

39 Multiple Organization Access Control Summary 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

40 Cross OU Reporting Enhanced Multi-Org Reporting Ledger/Ledger Set parameter on accounting reports and processes OU parameter on other standard reports and processes Create XMLP Extracts & Templates that cross OU You can mix as many languages as you want. You can have templates translation extracted XMLP will merge the right language based on the user locale (and the data). You can have the template with no text, and drive everything from the xml data Beware of inconsistent definitions, currencies

41 New Standard Reporting Paradigm <Insert Picture Here>

42 BI Publisher Enable Business Users to Format and Deliver Documents Integrated Solution For: Formatting Managing Delivering Your Business Documents Invoices Checks Meet Business Requirements Remove Complexity Reduce Maintenance Cost Reduce TCO Labels Destinations XML Publisher XML/EFT/EDI Reports Integrate Out-of-the-Box with R9 CRM, ESA, FMS, HCM, and SCM

43 BI Publisher Business Users Format and Deliver Documents Data Sources XML Publisher Output Formats Destination Oracle Applications CRM XML Publishing Engine PDF RTF HTML XML EDI Excel Printer Fax Projects FMS HCM SCM Templates Letters Fund Transfers Order Confirmations Online Paychecks Any XML Data Source Business User Bills Government Grant Forms Integrate Out-of-the-Box with Oracle Applications

44 The New Standard Reports Paradigm BI Publisher and 835 Templates in the EBS What s Happening Replaces many standard reports with data extracts and templates Merges custom templates and data extracts at run-time Delivers output in PDF, HTML, RTF, Excel (HTML), or text for use with EFT and EDI transmissions Example 98 removed reports in JE/JG 19 Extracts, 86 Templates Benefits Put reporting in the hands of the business user Create report formats using desktop tools (Adobe Acrobat, MS Word, MS Excel, and XML Editors) Publish in any format, to the web and electronically Drive reporting consistency with one source of data

45 Financial Reporting with BI Publisher More than 400 Modifiable Formats in Financials Product Formats Product Formats Assets 22 IT Audit 2 Cash 3 Loans 6 Collections 15 Payables 9 Common Modules 10 Payments 120 Financials Consolidation Hub 21 Public Sector 6 General Ledger 14 Receivables 10 Globalizations 92 Internal Controls Manager Subledger Accounting Tax 23

46 What the Architecture Gets You Work Globally Global Procurement Global Billing Global Dunning Manage Globally Global Set-up Global Ledger Sets worldwide insight Global Reporting Comply Locally Statutory Accounting Transaction Tax Legal Entity processing and reporting Release 12 Subsidiary LEs. Company account for themselves in Ledgers, and Ledger Set Multi-Org Access Control Work in Process Inventory Company Purchasing Receivables Payables Company manage their subledger data in Operating Units Projects

47 Data Management Leveraging centralized data model Payables Purchasing Suppliers Global Tax Authorities, etc Payments Party Information Cash Management Banks and Branches Trading Community Architecture Oracle Fusion Middleware ERP CRM 3 rd rd Party

48 Comply Locally Legislative Watch Process A team of domain experts from around the world monitor and analyze legal and regulatory requirements Legislative Updates and Trends MONITOR ANALYZE IMPLEMENT Customer Requirements Applications Global Strategy Oracle LOBs Provide input to development planning process Applications Global Strategy Explain how product handles legal requirements Development

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

50 Localizations - EBS 12 Comply with Local Rules and Regulations Argentina Australia Austria Belgium Brazil Bulgaria Canada Chile China Colombia Croatia Czech Republic Denmark Finland France Germany Greece Hong Kong Hungary India Ireland Israel Italy Japan Korea Kuwait Mexico Netherlands New Zealand Norway Peru Poland Portugal Romania Russia Saudi Arabia Singapore Slovakia South Africa Spain Sweden Switzerland Taiwan Turkey UAE Ukraine United Kingdom United States Venezuela Oracle E-Business Suite is used in over 150 countries.

51 Finding Additional Information Accelerate your evaluation and planning My Oracle Support E-Business Suite Release 12.1 Information Center Knowledge > Tools and Training > Release 12.1 Info Center (Doc ID: )

52 Finding Additional Information EBS Globalization Center (Doc ID: My Oracle Support E-Business Suite Release 12.1 Information Center Knowledge > Tools and Training > Release 12.1 Info Center (Doc ID: )

53 R12.x Localizations Information Countries Data Sheet

54 Finding Additional Information EBS Product Locailzation My Oracle Support E-Business Suite Release 12.1 Information Center Knowledge > Tools and Training > Release 12.1 Info Center (Doc ID: )

55 Finding Additional Information EBS Add-On Localization My Oracle Support E-Business Suite Release 12.1 Information Center Knowledge > Tools and Training > Release 12.1 Info Center (Doc ID: )

56 Finding Additional Information EBS Financials Legislative Updates My Oracle Support E-Business Suite Release 12.1 Information Center Knowledge > Tools and Training > Release 12.1 Info Center (Doc ID: )

57 Finding Additional Information Accelerate your evaluation and planning My Oracle Support (formerly MetaLink): Advisor Webcast Program 47 Live Webcasts across Oracle E-Business Suite Knowledge > Tools and Training > Training (Web Seminars) (Doc ID: )

58 Questions and Answers

59 Continued Investment Fusion V1.x Hyperion EPM 11.x E-Business Suite 12.x E-Business Suite 12.1 Fusion V1 PeopleSoft Enterprise 9.x Hyperion EPM PeopleSoft Enterprise 9.1 E-Business Suite JD Edwards World A9.x JD Edwards E1 9.0 JD Edwards World A9.2 Agile PLM JD Edwards E1 9.x E-Business Demantra 7.3 GTM 6.1 Demantra 7.x Demantra 7.2 Suite 12 OTM 6.0 OTM 6.1 GTM/OTM 6.x PeopleSoft Enterprise 9.0 Agile PLM Agile PLM 9.3 Hyperion EPM Agile PLM 9.x JD Edwards World A9.1 Agile PLM for Process 5.2 Agile PLM for Process 6 Siebel CRM 8.2 for Pub Sec Agile PLM for Process 6.x JD Edwards E Siebel CRM 8.0 CRM On Demand 15 Siebel CRM CRM On Demand 18 Siebel CRM 8.x CRM On Demand 12 CRM On Demand 13 CRM On Demand 14 CRM On Demand 16 CRM On Demand 17 CRM On Demand 19/

60 Recommended Actions Upgrade, Adopt, Extend Upgrade to Latest Oracle Applications Release Adopt Standards-Based Technology Extend Business Value with Co-existence Opportunities E-Business Suite 12.1 VCP 12.1 Demantra 7.3 Oracle SOA Suite and AIA Oracle OBIEE BI Apps Fusion Apps JD Edwards E1 9.0 JD Edwards World A9.2 OTM 6.1 WMS 12.1 Agile PLM 9.3 Oracle ADF & WebCenter Oracle Content Management Oracle Identity Mgmt Oracle Enterprise Mgr Hyperion EPM GRC Supply Chain: - VCP - Demantra - Agile PeopleSoft Enterprise 9.1 Agile PLM for Process 6 Industry Apps CRM On Demand Siebel CRM 8.2

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62 <Insert Picture Here> It is not all architecture: +300 Features R Features R new products in R12.1 Oracle Advanced Planning Command Center Oracle Demand Signal Repository Oracle Manufacturing Operations Center Oracle Service Parts Planning Oracle Site Hub Oracle PIM for Retail Oracle Supplier Ship & Debit Oracle Price Protection Oracle Landed Cost Management

63 Appendix: 300+ New Features <Insert Picture Here>

64 New in Financial Control & Reporting Highly automated financials processing drives efficiencies Centralized accounting setup Streamlined multiple ledger processing and reporting Parallel financial reporting Automatic reporting currency conversion Replacement for disabled accounts EFFICIENCY Data security across legal entities, ledgers or balancing segment values Control Accounts FLEXIBILITY Accounting and reporting sequencing Journal line reconciliation AUDITABILITY

65 New in Procure-to-Pay Integrated Suite Optimizes Working Capital Document line level entry and approval Non-PO invoice accounting entry by approvers Invoice dispute management Real-time status of purchasing contract T&Cs and invoicing activity in Oracle Payables and Purchasing Self-service opportunities via isupplier Portal to a broader set of their suppliers Self service entry extended to receipt matched, complex Work Purchase Orders, and non-po invoices PRODUCTIVITY COST SAVINGS Streamlined supplier setup and maintenance as part of Trading Community Architecture (TCA) Access to TCA features INTEGRATION

66 New in Credit-to-Cash Accelerate cash cycle and manage revenue with fiscal discipline Daily revenue recognition Deferral reason for goods and services COGS and revenue matching Line level cash application More efficient payment application with Oracle Payments integration More targeted and efficient collections with configurable matrix Credit recommendation enhancements Conversion of delinquent receivables to payment plans Visibility to carry-forward balances with cycle-based billing Payment application according to customer preferences COMPLIANCE BETTER CASH FLOW INDUSTRY SUPPORT

67 New in Cash and Treasury Optimize Cash and Treasury Operations Centralized and consolidated bank model Single bank account shared by multiple organizations Bank account transfers directly in Cash Management Funds optimization with cash pooling and zero balancing Configurable and centralized payments engine Full audit trail and control with single point of payment administration Straight through processing (STP) for payments Real-time visibility into cash inflows and outflows Large library of payment formats and validations Simplified reconciliation of bank statements to cash transactions in multiple organizations Support for new bank account balance types in bank statement import Bank account-level reconciliation options and tolerances EFFICIENCY COMPLEXITY FLEXIBILITY

68 New in Asset Management Maximize return on assets Automate legacy asset conversion with enhanced preparation of Mass Additions EFFICIENCY Perform rollback on select assets with Automatic Depreciation Rollback PERFORMANCE Group Assets to include Units of Production method Energy straight-line depreciation method Asset impairment of a producing asset INDUSTRY SUPPORT

69 New in Travel & Expense Lower the total cost of travel and expense CONUS and OCONUS global per diem rates Per diem and policy schedules LOWER COSTS Expense splitting across multiple accounting segments Enhanced cost center and projects approvals ACCURACY Self-service cash advance application during entry Bar code generation Streamlined receipts management with receipts tracking and receipts missing capabilities PRODUCTIVITY