Financial Management Solutions What is New from Oracle

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Financial Management SolutionsWhat is New from
Oracle?

• Omar Tahboub
• Director, Global Product Strategy
• Applications Development

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Safe Harbor Statement
The following is intended to outline our general
product direction. It is intended for information
purposes only, and may not be incorporated into
any contract. It is not a commitment to deliver
any material, code, or functionality, and should
not be relied upon in making purchasing decision.
The development, release, and timing of any
features or functionality described for Oracles
products remains at the sole discretion of Oracle.
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Agenda
Global Functional Architecture
New Functionality
Business Intelligence
User Productivity
Localizations
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Agenda
Global Functional Architecture
New Functionality
Business Intelligence
User Productivity
Localizations
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Global ArchitectureMore Control, Greater
Flexibility, Lower Costs
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1
MULTIPLE LEDGERS
Centralized Architecture
LEGAL ENTITY
3rd Party Systems
2.1
General Ledger
ACCOUNTING
2.2
2.3
BANK MODEL
Centralized Accounting Model, Rules, Engine and
Repository
2.4
TAX ENGINE
INTERCOMPANY
2.5
Intercompany Accounting
Banking
Global Tax
Legal Entity
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E-Business Suite
ROLE BASED ACCESS to Operating Units
3rd Party Systems
Projects
Receivables
Inventory
Payables
Work in Process
Purchasing
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Superior Ownership Experience Single Page for
Accounting Setup

• Legal Entities
• Ledgers
• Currencies
• BalancingSegments
• SubledgerAccounting
• Operating Units
• BalancingOptions

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Multiple Ledgers More Efficient Period-end
Processing
Ledger Set

• Ledger Set Benefits
• Cross/Multiple Ledger processing and reporting
• Data and definitions that can be shared and
  secured
• Native support for multiple accounting
  representations

Reporting Currency
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Multiple Currency Support For General Ledger
Data From All Sources

• Reporting Currency
• Replaces Multiple Reporting Currencies (MRC)
• Integrated extension of a Ledger
• Maintain at three levels
• Balances translated balances in a different
  reporting currency
• Journal general ledger journals and balances in
  a different reporting currency
• Subledger subledger transactions, journals and
  balances in a different reporting currency

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Multiple Currency Support For General Ledger
Data From All Sources
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Multiple Currency Support For General Ledger
Data From All Sources
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Multiple Currency Support For General Ledger
Data From All Sources
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Centralized Accounting PoliciesGreater Control,
Transparency and Auditability
2.2

• Internal control and compliance with multiple
  accounting policies through user-defined
  accounting rules
• 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
• Streamline closing process with common posting
  engine
• Auditable and transparent entries accessible with
  full drilldown

3rd Party Systems
General Ledger
Centralized Accounting Model, Rules, Engine and
Repository
Intercompany Accounting
Banking
Global Tax
Legal Entity
E-Business Suite
3rd Party Systems
Projects
Receivables
Inventory
Payables
Work in Process
Purchasing
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Introduction to Subledger Accounting

• Rule-based accounting engine, toolset
  repository supporting both Oracle E-Business
  Suite and external modules
• Allows multiple accounting representations for a
  single business event, resolving conflicts
  between corporate and local fiscal accounting
  requirements
• Retains the most granular level of detail in the
  subledger accounting model, with different
  summarization options in the General Ledger,
  allowing full auditability and reconciliation
• Introduces a common data model and UI across
  subledgers, replaces various disparate 11i
  setups, providing single source of truth for
  financial and management analysis

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Multiple Accounting RepresentationsParallel
Financial Reporting

2.2
Ledger A
Ledger B
French Rules Plan Comptable French Calendar EUR
US GAAPUS COA US Calendar EUR
Dr
Cr
Centralized Accounting
Single business transaction can create
multiple accounting representations and in
multiple currencies
Payables Invoice
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Introduction to Subledger Accounting
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Introduction to Subledger Accounting Business
Benefits
01-EXP-200
01-EXP-240
DR
CR
DR
CR
800
200
Invoice 100 -
Invoice 100 -
Invoice 100 1000
01-LIAB-200
01-LIAB-240
DR
CR
DR
CR
- Invoice 100
200
- Invoice 100
800
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Introduction to Subledger Accounting Accounting
Methods builder

• Accounting Methods Builder
• Toolset to define journal entry rules for the
  transactions and events of a subledger
  application
• Allows defining multiple sets of rules to be used
  concurrently for different requirements

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Introduction to Subledger Accounting Accounting
Methods Builder
Description
Account Derivation Rule
Line Type
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Introduction to Subledger Accounting Inquiries
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Introduction to Subledger Accounting Inquiries
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Introduction to Subledger Accounting Standard
Reports
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Oracle E-Business Tax Business Needs
Business Needs
Solution
Need for Automation

• Seeding of basic tax content setup for selected
  countries
• Service integration and data upload from Vertex
  and Taxware in the United States
• Integrity checks when defining tax content setup

Constant Changes in Tax Laws and Regulations

• Most of tax content setup is date effective
• Tax Rules flow makes it easy to change existing
  rules and/or create new ones
• Tax Simulator allows simulation of tax setup,
  rules, transactions entry and respective tax
  rules results

Need for Local Compliance

• Tax Registrations, Tax Reporting Codes
• Tax Lines capture all relevant information used
  to determine applicable taxes
• Tax Reporting templates can be modified and
  extended

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Oracle E-Business Tax Business Needs
Business Needs
Solution
Sales and Use Tax in Procurement

• Complete Sales and Use Tax setup hierarchy can be
  defined in Regime to Rates flow
• Tax services for applicable transactions can be
  enabled at Configuration Owner Tax Options flow
• Tax rules can apply to generic or specific
  transactions
• Tax Jurisdictions can be defined for very
  precise geographical areas where taxes are
  applicable

Duty Tax handling

• Tax setup allows creation of Quantity Based tax
  rates

Deferred Tax in Payables

• Tax services for payments transactions can be
  enabled at Configuration Owner Tax Options flow

Tax on Freight

• Tax services for applicable transactions with
  freight can be enabled at Configuration Owner Tax
  options flow

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Oracle E-Business TaxDetermining Factor Classes

• Document
• Transaction Fiscal Classification
• Transaction Generic Classification
• Accounting Event
• Transaction Input Factor

Party
Process

• Legal Party Fiscal Classification
• Registration
• Party Fiscal Classification
• Transaction Input Factor

Product

• Product - Inventory Linked
• Product - Non-Inventory Linked
• Transaction Input Factor (Intended Use, Product
  Override)

Place

• Geography
• User Defined Geography

This Determining Factor Class contains
Determining Factors for several Ps.
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Oracle E-Business TaxKey Concepts
Tax Authority
Tax Regime
Tax
Tax Jurisdiction
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Oracle E-Business TaxRegime to Rates Flow with
Canadian Taxes
Operating Unit Tax Accounts
Tax Status
Tax Regime
Tax
Tax Rate
Tax Jurisdiction
Recovery Rate


Flow
Optional Flow
Note The above data examples were introduced
just to illustrate the business flow and do not
represent the complete tax setup for the country
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Oracle E-Business Tax Main Menu
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Oracle E-Business Tax Product Uptake within
Oracle E-Business Suite
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Agenda
Global Functional Architecture
New Functionality
Business Intelligence
User Productivity
Localizations
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Two Stage Evaluation of RFP Business Drivers

• Mandatory requirement by Public Sector
  Organizations in many countries
• Supplier responses are to be evaluated from a
  solution and price perspective separately
• During the solution evaluation stage, all price
  information should be hidden from the buying team
• Buyer should control what information about the
  responses are visible to the supplier and at what
  stage

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2 Stage RFQSetup Quote Creation
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2 Stage RFQSetup Quote Creation
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2 Stage RFQCommercial Stage
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Landed Cost ManagementDescription

• Oracles Landed Cost Management application is a
  new product released on EBS r.12.1.
• Landed Cost Management enables organizations to
  gain insight into all of the real costs
  associated with acquiring products including
  broker, terminal, insurance, and transportation
  fees as well as duties and taxes.
• These costs are initially estimated and then
  updated with actual amounts as they become known.
• Cost methods and inventory valuations are
  accurately maintained providing better visibility
  into an individual products profitability and an
  organizations outstanding exposure.

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LCM Simple ExampleInbound Shipment
Issue PO 123
Customer
China Manufacturing
Buyer
Duties
Broker Fees
5
5
100
3
2
PO 123 Item A Cost
Item A Total Landed Cost
An additional 40 is added on to the purchase
price of the item
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Questions to be Answered

• Q. Are we sourcing strategically?
• Q. Are my products priced appropriately? What is
  the margin?
• Q. Can I negotiate better contracts with
  suppliers and/or customers?
• Q. Can we appropriately apportion freight cost?
• Q. How am I meeting strict geographic regulations
  pertaining to item cost?
• Q. Are my financial reports accurate?

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Landed Cost Management At-a-Glance
LCM
Procurement
Receiving/WMS/Inventory
Costing
Accounts Payable
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Landed Cost ManagementVersion 12.1 Flow
Estimated Landed Cost
Actual Landed Cost
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Review Estimated Landed Cost
Line Item
Unit Landed Cost
Estimated Landed Cost
Freight 10 of value of the item
Freight 10 of value of the item
Insurance Flat fee - 12.90 prorated by Value
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Review New Actual Landed Cost
Actuals after receiving Invoices in AP
Actual Unit Landed Cost
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Agenda
Global Functional Architecture
New Functionality
Business Intelligence
User Productivity
Localizations
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Role-Based Best Practices Provide Relevant and
Actionable Insight for Everyone
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Oracle Financial Analytics Provides Insight to
Maximize Cash Flow and Profitability
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Decision Workflows Financial Analytics
BusinessObjectives/ Issues
Maximize cash flow
Is DSO on target?
Is DPO on target?
Is overdue balances trending up?
Are payment terms in compliance?

• Business Function Receivables
• Role Director, Credits Collections
• Objectives
• Maximize cash flow
• Control risk of receivables portfolio

Gain Insights
How long is the underlying overdue balance
pending?
What is the aging of due balances?
Who are the customers and collectors?
Drill to due balances by region
Drill to overdue invoice detail
TakeAction
Target collection effortsto reduce
overduebalances
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Decision Workflows Financial Analytics
Business Objectives/ Issues
Maximize cash flow
Is DSO on target?
Drill toDetail
Is overdue balances trending up?
Gain Insights
How long is the underlying overdue balance
pending?
Who are the customers?
Drill to overdue invoice detail
TakeAction
Target collection effortsto reduce
overduebalances
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BI Applications - Business ContentOver 5,000
pre-defined assets
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ltInsert Picture Heregt
Oracle Financial Analytics Demonstration
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Agenda
Global Functional Architecture
New Functionality
Business Intelligence
User Productivity
Localizations
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The Business ProblemPaper!

• Paper is an essential part of many financial
  processes
• Paper introduces inefficiencies that increase
  costs (storage, productivity, transportation,
  auditing)
• Paper-reliant processes are well defined but
  cannot be automated (no scalability, no
  visibility)
• Key examples Accounts Payable, Travel Expense

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Oracle Imaging Process ManagementContent-enable
s Oracle Financials to accelerate processes
Oracle Document Capture
Oracle Financials
Scan Commit
Search Access Approve
Route Delegate Monitor
Oracle Business Process Management Suite
Store Index Retrieve Manage
Ready for Payment
Oracle Imaging Process Management
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Tightly Integrated User ExperienceOne-click
access to imaged documents

• Oracle I/PM is launched from Financials UI to

• Retrieve associated images
• Access work lists
• Resolve exceptions
• etc.

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ltInsert Picture Heregt
Demonstration Oracle I/PM and Oracle Payables
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Business Reporting RequirementsComplex Diverse

• High Fidelity Reports
• Partner Reports
• Financial Statements
• Government forms
• Marketing materials
• Contracts
• Checks, Labels
• XML
• EFT / EDI
• Multiple destinations

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From Data to Destination
XML Publisher
Output Formats
Data Sources
Destination
Oracle Applications
Publishing Engine

• Email
• Printer
• Fax

PDF RTF
HTML XML
EDI Excel
XML
CRM
Projects
FMS
OrderConfirmations
Templates
Letters
HCM
FundTransfers
OnlinePaychecks
SCM
GovernmentGrant Forms
Bills
Business User
Any XMLData Source
Integrate Out-of-the-Box with Oracle Applications
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Examples
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Drive Greater End User Productivity User
Productivity Kit - UPK
SEE IT
TRY IT
KNOW IT
DO IT
User Modes
Self-Running Demo
Interactive Simulation
Testing for Competence
Context-Sensitive Help
1,575 Pre-delivered Topics for Release 12

• Financials
• Payables                     
• Receivables                 
• General Ledger
• Assets  
• Internet Expenses
• Advanced Global Intercompany System
• E-Business Tax
• Subledger Accounting
• Bank Account Setup/Maintenance

• HRMS
• Human Resources
• Payroll                     
• Self-Service HR
• Performance Mgmt
• Time and Labor 
• iRecruitment
• Learning Mgmt

• Procurement
• Purchasing  
• iSupplier Portal  
• iProcurement   

• Manufacturing
• Shop Floor Management
• Work In Process
• Discrete MES
• OPM Product Development
• OPM Process Execution
• OPM MES

• Projects
• Project Costing
• Project Mgmt
• Project Resource Mgmt

• Distribution
• Inventory
• Order Mgmt
• Shipping Execution

• Applications Technology
• Applications Mgmt
• Forms Personalization

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Examples
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Agenda
Global Functional Architecture
New Functionality
Business Intelligence
User Productivity
Localizations
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Hijra Calendar
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Hijra Calendar
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QA
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