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Oracle Payables

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Submitted By mahendra79
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Critical Details about EBS R12 Upgrades
Presented By

Susan Behn VP, Oracle Practice

Objectives/Agenda
 Provide a high level view of topics to consider when upgrading to R12  When is a “technical” upgrade possible  What do I need to research more  When is the right time for training  What do I include in my budget/timeline  Functional Topics  Technical Topics

2

Overview
 Are you aware that…  There are over 1500 new features in R12
 



A responsibility can now access data in multiple organizations R12.1 was released in April 2009
 


How does this impact custom Responsibilities How will all these new features be “discovered”

Quicker data entry for shared services organizations





The user interface to the Oracle Diagnostics scripts was rewritten in OA Framework in R12.0.6
 

12.0 focused on Financials 12.1 focused on everything else including HR

Utilizes role-based access control requiring role grants from the user management responsibility Setup reports in diagnostics can help you find missing setups

3

FINANCIALS - GL

4

Financials - GL
 Legal Entities have significant functionality in R12  Should reflect legal corporate structure  Utilized by Accounting Functions, E-Business Tax, Intercompany, and Bank Account  Balancing segment is associated with legal entity – not ledger  Bank account is owned by legal entity  Align your Ledger structure with your business plan  Operating units are associated with ledgers in R12 – not LE  Position your business to accommodate growth  Design ledgers to satisfy non-GAAP accounting requirements  Secondary Ledgers can be utilized for statutory, management, and/or consolidation reporting  Mapping from Primary to Secondary Ledger(s) is defined in General Ledger and is assigned in the Accounting Setup Manager

5

Financials - GL
 Consider required changes to ledgers design to optimize R12 functionality for Foreign Currency Reporting and other enhancements  Ledger Sets




All Ledgers in a Ledger Set must have the same Calendar and Chart of Accounts Functionality across ledger sets - Open/Close Periods, Create Journals, Translate Balances, Reporting, and View Information  Improves Data Security, Reliability, and Consistency

 On upgrade, each Set of Books becomes a Ledger

and a Ledger Set composed of one Ledger
6

Setting up General Ledger
Ledger Set 1
Ledger A
US GAAP US CoA US Calendar USD

Ledger B
French Rules US CoA US Calendar EUR

Ledger C
US GAAP US CoA US Calendar AUS

Ledger D
US GAAP US CoA US Calendar USD

• All Ledgers in a Ledger Set must have the same
– Calendar – Chart of Accounts

Ledger Set 2
7

Financials – Web ADI
 Web ADI and Report Manager are now separate applications  This may require assistance in transitioning to R12  Must log in to application to run concurrent requests  The MRC schema has been eliminated in R12  Multiple reporting currency is now handled by setting a reporting currency


Similar to a secondary ledger except currency is the only variable

8

FINANCIALS – SUBLEDGER ACCOUNTING

9

Subledger Accounting
 Consider impact of planned change to seeded transaction rules for any of your subledgers  Bring Account Generator modifications brought into the Subledger Accounting engine only if changes are required  Otherwise, recommend this as a post upgrade step  Plan how Subledger Accounting be leveraged going forward  Auto accounting still needed for Projects cost distribution, revenue generation, and accounting event generation processes to create default accounts needed during processing  Reduce your current extensions by using the Subledger Accounting engine for complex rules or to override auto accounting defaults

 Drilldown from GL will be from GL through SLA to the individual subledger transactions
 Subledger accounting schema is XLA  Post in summary to GL since detail is in XLA

 Transaction codes are obsolete in Federal financials  Must replace with SLA rules
10

Subledger Accounting
GENERAL LEDGER
Primary Ledger
Secondary Ledger(s)

Accounting

Drilldown to Subledger for all Accounting Details

Subledger Accounting (SLA) Subledger Accounting Subledgers
11

Drilldown further for Transaction Details

SLA – Acquisition Strategy
 Use secondary ledgers and ledger sets for consolidating reporting  Bring in acquired company using their own ledger  Create accounting rules to post to a secondary ledger that matches your company  This does not replace the consolidation process

12

SLA – Reconciliation Tools
 Are you aware that…  There is a robust set of reconciliation tools within Subledger Accounting and that there is a new reconciliation process for all sub-ledgers  Set of Books now called Ledgers and have 4 Cs
   

Chart of Accounts Calendar Currency Subledger Accounting Convention (New in R12)  Six Seeded Subledger Accounting Conventions  Accrual with Encumbrance Accounting, Cash with Encumbrance Accounting, Standard Accrual, Standard Cash, US Federal Accounting, and China Standard Accrual

13

SLA – Upgrade Process
 By default – upgrade with create six months of transactions in SLA  To change default at time of upgrade
  

Apply patch 5233248 to R11i If using Projects or Grants, also apply 10231107 on R11i Run “SLA Pre-Upgrade program” concurrent request  Use a start date older than 6 months for the start date parameter

 Upgrade by request  Upgrade historical data at a later time  Use this option to reduce downtime window  Consider future testing that may be required  See appendix in upgrade guide for more details
14

FINANCIALS - PAYMENTS

15

Payments
 Consider how the new Oracle Payments application can be leveraged to your organization  Are you aware that…  The user interface for creating payments is an entirely new process in R12


Additional configurations are required to produce payments in R12  Payment process profile option defines ou, bank, etc

 Oracle Payments can be configured to support either a

decentralized or centralized payment process
 

Payment Process Dashboard Funds Disbursement Dashboard
16

Payments
 Oracle Payments is now integrated with both Payables (Funds Disbursement) and Receivables (Funds Capture)  Improves working capital management  Oracle Payments can now handle credit card transactions on the funds capture side
 

Oracle source product creates a transaction The Payments Engine authorizes the transaction

17

Funds Capture Source Products
• Payments integrates with the following products to facilitate Funds Capture
- Collections - iReceivables - iStore - Order Capture - Order Management
- Service

- Service Contracts - Lease Management - Receivables - Student System

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Third Party Payment Systems/Purchase Instruments Supported Out of the Box
• Third Party Payment Systems supported out-of-the-box • As of 11/29/2010, only Paymentech is certified with R12 • Refer to My Oracle Support Doc. ID: 471385.1
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Payment Processing in R12
ORACLE PAYMENTS Credit Card Payments Direct Debits Bills Receivable Remittance Check Printing EFT Payments

Order-to-Cash Applications
Receivables, iStore, Collections, Order Management, Contracts

Procure-to-Pay Applications
Payables, Global Financials, Loans

• • • •

Multiple Applications leverage ONE payment processing solution Define templates and validation rules for payment processing Payment templates utilize BI Publisher iPayments is obsolete in R12
20

FINANCIALS – PROCURE TO PAY

21

Procure to Pay
 Are you aware that…  Trading Partners can be shared between Payables and Receivables and across operating units
 

Suppliers and Customers share a TCA Party Record Plan for customer and supplier cleanup prior to upgrade

 Suppliers and Banks forms are now OA Framework

forms
 

Allow adequate training time Plan for re-creation of personalizations in OAF

 There is now a lines table for AP Invoices in R12 to

match the lines table from the PO


Plan for training and impact to interfaces and reporting
22

Procure to Pay
 Are you aware that…  Oracle has redeveloped some major forms for Oracle Procurement


Professional Buyer’s Work Center  Consolidates procurement responsibilities to single command center  Streamlined workflows  Improved security for shared services organizations  Improved Microsoft Word synchronization  Integration with Oracle Sourcing and Contracts  Personalized Views

 R12 fully supports Contingent Workers

23

Procure to Pay
 Are you aware that…  There is more support for complex goods and services in R12
 

Improved alignment between finance and procurement to monitor supplier performance Better control of payment for complex services

 Services Procurement now supports progress

payments including rate, lump sum and milestone pay items  Services Procurement fully supports retainage
 

Capture Retainage Rate and Maximum Retainage Amount on the contract Retainage rate applied to all standard invoices until max is reached
24

CASH MANAGEMENT

25

Cash Management
 Cash Management setup is required to manage banks  The Cash Management application now maintains banks and bank accounts


Reminder: Bank accounts are owned by the legal entity

 Document sequencing of payments has moved to the Cash Management bank account setup  Cash Management now supports Cash Pooling without buying Treasury

26

Cash Management
 Bank accounts are shared by multiple applications

(AP, AR, Payroll)  Bank accounts are stored in the TCA architecture and can be shared across operating units  Banks are merged upon upgrade if the following attributes match
      

Bank number Institution type Country Bank admin email Tax payer ID Tax reference number Description, Effective dates
27

E-BUSINESS TAX

28

E-Business Tax
 E-Business Tax setup is required  Minimal setup for geographies required for AR  Consider how E-Business Tax can be designed and leveraged
 E-Business Tax provides global control and is a single source for all taxes  Utilizes centrally defined rules, rates, and jurisdiction

 E-Business Tax has a rules engine to accommodate complex tax rules  Use Taxes are no longer an afterthought
29

E-Business Tax
 Are you aware that…  Foreign taxes and the currency for those taxes is now supported  There is a Tax Simulator engine to provide “what if” scenarios to validate tax calculations  A central tax repository provides a reportable audit trail


Schema is XZ

 Tax rules based on 4Ps
   

Party - legal entity Product – goods or service Process – accounting event Place – geographic jurisdiction
30

RECEIVABLES

31

Receivables
 Are you aware that…  There is a new refund feature in R12


This eliminates a common customization



R12 contains automatic netting functionality between Receivables and Payables at the Party level


AR Customer Supplier Netting Report is no longer needed



Some of the collection functionality is no longer included in Receivables


Oracle Advanced Collections replaces collections workbench  Account details and activities forms are still available in AR for non-collectors (for research purposes)  Dunning letters are now improved XML publisher reports through advanced collections  See My Oracle Support Doc ID: 389443.1 for more details



The Customer forms are now OA Framework forms
32

Receivables
 COGS and Revenue Matching Report is replaced by COGS and Revenue Matching Feature  Automatically recognizes COGS when revenue is recognized  In 11i, report provided information to create manual JEs to correct revenue recognition  Backward-compatible views RA_CUSTOMERS and RA_ADDRESSES are no longer available


Extensions should reference TCA tables

 On Account Credit Memo Refund  Direct integration to AP eliminates creation of negative miscellaneous receipt
33

Receivables
 Tax setup and reporting in AR are replaced by EBS Tax

34

SUPPLY CHAIN AND MANUFACTURING

35

Supply Chain & Manufacturing
 The new Oracle Manufacturing Execution System (MES) provides new dashboard controls over the shop floor activities  Dashboard controls similar to the same look as the Professional Buyers Workbench  R12 supports Dual Units of Measure  You may need to create new inventory items to take advantage of this feature  Oracle Inventory serves both Discrete and Process Manufacturing

36

Inventory Convergence
 OPM and discrete now share MTL_SYSTEM_ITEMS
Order Management

Core Inventory
MTL_SYSTEM_ITEMS

OPM Prod

OPM Costing

OPM QA

WIP

Costing

QA

37

New Features - Inventory
 Discrete Manufacturing  Dual UOM control  Advanced lot control  Material Status  Enhanced inventory allocation rules

38

Supply Chain & Manufacturing
 Consider how new genealogy and lot functionalities can be leveraged for your organization  Track Parent lot and multiple sublots  New lot attributes and controls over lots provide new ways to answer questions about shipped items
 

When was the lot retested What grade of material was used in a lot Notification if lot or serial approaches milestone dates

 New Lot Expiry Proc Workflow


39

Supply Chain & Manufacturing
 Chargeable Subcontracting Support  ‘Sync’ components are meant to arrive at the contractor’s facility right before assembly of the ordered item begins  Comprehensive support across the EBS for managing the underlying transactions
OEM pays for Sync Components  OEM pays for final assemblies  Non sync parts ordered in volume quantities


Raw Materials

Contract Manufacturer

OEM
40

Supply Chain & Manufacturing
 Asset tracking location can be required for various inventory transaction types  The Deferred COGS account can improve revenue recognition in your organization  Picking rule enhancements  Over picking is supported  Picking rules can be associated to items  Rules can be assigned to meet customer preferences  Release rules support WMS integration
 Cross dock criteria  Allocation method  Task priority

41

PROJECT COSTING

42

Project Costing
 Are you aware that…  You can now automatically allocate indirect and common costs  Retirement cost processing can be automated  Revenue can be revalued in foreign currency for project customers  Otherwise, minimal changes in project costing tables

43

DATABASE AND ARCHITECTURE

44

Database and Architecture
 Will your existing 11i servers meet the increased disk space and performance requirements for R12  Can the redesigned Oracle iSetup application be used to help load data into your R12 environment  Are you ready for the modified file directory structure for R12  Are you ready for the changes at the Java level for R12  Have you considered the rollout of the new SUN JRE Plugin utilized by R12

45

R12 Application File Structure

46

Database and Architecture
 Are you aware that…  OATM is required for R12


Consider if there is value in implementing OATM prior to upgrade  R12 will do a re-org of database anyway so may not buy much (varies by organization)

 You may need to consider a database upgrade with

R12


R12 is certified for recent releases of 11g which is recommended

47

CUSTOMIZATIONS, EXTENSIONS AND THIRD PARTY PRODUCTS

48

WRICEP &Third Party Products
 Have you performed a gap analysis of your current extensions/customizations against standard functionality in R12  Are your third party products certified with R12  Can you eliminate any customizations, extensions or third party products with new functionality available  Can you simplify customizations/extensions by utilizing functionality such as SLA rules, personalizations

49

Technology Recommendation
 Oracle recommends that E-Business Suite customers follow a similar path that Oracle took with E-Business in regards to the use of development tools for upgrades of extensions.  Upgrade existing forms and reports to the latest version of forms and reports – 10g for R12  Build any new applications using Oracle JDeveloper 10g  Utilize XML Publisher for formatting of report output for new or changed reports
 

Check on licensing requirements for XML Publisher XML Publisher can have problems with large amounts of data
50

OA Framework Forms
 Are you aware that…  Oracle has redeveloped major forms in Java (Oracle Applications Framework)


Some of your personalizations will need to be redeveloped


Any personalizations where the forms technology changed from professional form to an OA Framework form  Customer form  Supplier form  Bank forms



OA Framework personalizations are significantly more limited than professional forms personalizations




Personalizations  Refer to the Oracle Application Framework Personalization Guide OA Framework extensions which require Jdeveloper modifications  Refer to My Oracle Support Doc ID: 744832.1 - Oracle Application Framework Developer Guide

51

R12 Professional forms
 Professional Forms have been upgraded from 6i to 10g  The 10g developer suite includes a Forms Migration Assistant which will upgrade typically 80% of the functionality and identify obsolete features




These obsolete features will be identified by the migration tool but must be resolved manually Obsolete features document for 9i which also applies to 10g  http://www.oracle.com/technology/products/forms/pdf/forms_ upgrade_reference.pdf

 If EBS seeded forms were customized, any table changes must be corrected
52

R12 Reports
  

Are you aware that


All reports in R12.1 are published using BI Publisher

All Oracle reports must be upgraded to 10g reports Upgrade process




Seeded report customizations  copy the R12 version of the report to your custom report name and perform the necessary changes  For formatting changes, create a new XML publisher template and associate the new template with the new custom version of the report Custom reports built from scratch  Recompile in Reports 10g  Remove deprecated or obsolete functionality  http://www.oracle.com/technology/products/reports/10gr2/Re ports_guide_to_changed_functionality.pdf  Correct for any EBS table changes

53

Other Presentations
 Start Training as Early as Possible  Additional Presentations to Consider  Personalizations – Both OA Framework and Forms 6i/10g personalizations  BI Publisher Quick Start Guide  Diagnostics Presentation and White Paper  Workflow Troubleshooting in R12  OAUG Webinars  Continue attending regional meetings  Attend Collaborate12 in Las Vegas  Plan, plan, plan
54

Interfaces
 Impacts to interfaces  Have you researched the impact of table changes on interfaces


Some significant interfaces impacted by table changes:  AP Invoice imports/exports due to new headers, lines, distributions structure  ACH – bank accounts are now in TCA



Have you considered the impact of the R12 directory structure on automated processes


How many shell scripts will require updates



Have you reviewed the integration repository for new or changed integration points
 

Integration Repository Responsibility (12.0.6) Integrated SOA Gateway Responsibility (12.1 and later)

55

Table Changes
 Learn about database changes to prepare for reporting updates  AP Tables AP Views  The EBS Data Model Comparison Report provides the database object definition changes between two EBS releases  See Doc ID 1290886.1  Watch a 4-minute overview video on this report (04:02)


(Sign in to My Oracle Support to access the video.)

 The EBS ATG Seed Data Comparison Report provides information about seed data (based on ATG loader control files) changes between two EBS releases  See Doc Id 1327399.1  Watch a 7-minute overview video on this report (07:09)


(Sign in to My Oracle Support to access the video.)
56

Impact of Multi-Org on Extensions
 Customizations which filter data by operating unit must be checked  Virtual Private Database (VPD) feature will replace usage of CLIENT_INFO(Org Context) function in new Multi-Org Architecture  Release 11i script to access specific operating unit data begin dbms_application_info.set_client_info('&org_id'); end; / select * from po_headers /  R12 must request access through Security Policy in the database begin mo_global.set_policy_context('S', &org_id); end; / select * from po_headers /

57

Impact of Multi-Org on Extensions
 Check programs where concurrent program definition has been customized or new definitions  New column MULTI_ORG_CATEGORY added to table FND_CONCURRENT_PROGRAMS  value is null on upgrade and concurrent program may not run correctly  After upgrade, assign one of the following values  ‘S’ = Single Org  ‘M’ = Multi Org  Example script to set value UPDATE FND_CONCURRENT_PROGRAMS SET MULTI_ORG_CATEGORY = {'S‘ or ‘M’} WHERE CONCURRENT_PROGRAM_NAME = '{Program Name}'

58

Integration Repository (iRep)
 iRep describes the Oracle endpoints - Business to Business (B2B) or Application to Application (A2A)  Interface types in iREP  PL/SQL  Concurrent Programs  Open Interfaces  Interface Views  Electronic Data Interchange (EDI) Message Transactions  XML Gateway Message Maps  Java Methods
59

WORKFLOW AND FUSION MIDDLEWARE

60

Workflow & Fusion Middleware
 What role does BPEL play when compared to Workflow  Should you continue to invest in Workflow customizations  What about Oracle Alerts – do they continue to function in R12 Should they be redeveloped in BPEL or Workflow  Are there any new Workflow diagnostics for R12

61

Lifetime Support Benefits
 For Release 11i.10, the general availability date was November 2004. Normally this would mean that Premier support would end November 2009. Oracle has extended this date by one year until November 2010. Extended Support thus now ends November 2013

62

TRAINING

64

Training
 How will your functional users be trained on the new navigation and processes in R12  Do you have a training plan for your technical team  Technical application support training  JDeveloper  OA Framework  Personalizations  R12 directory structure  11g database  XML publisher

65

Summary
 R12 is full of features  The R12 upgrade process is better than previous upgrades  11i to 12 cannot be compared to a dot release for 11i  Do not under estimate the time needed for:  Planning  Testing  Training

66

Q&A
Thank You! Susan Behn susan.behn@infosemantics.com www.infosemantics.com People First. Driving Solutions Together®

67

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