eBusiness Suite Release 12 – W hat could it do for you?

1. eBusiness Suite Release 12 – What could it do for you? Barbara Beattie – FMS Solution Consultant March 22nd, 2007

2. Agenda Introduction and Overview Why Release 12? Key features What's in it for you? Q & A

3. Release 12 : The Global Business Release- a key definition • Global (adjective): defined in the Shorter Oxford English Dictionary • Relating to the whole world, worldwide • Relating to or embracing the whole of something, or of a group of things • (Computing) Operating or applying through the whole of a file or program

4. Finance PerformanceSuffering from Lack of Standardisation HOW FINANCE SPENDS ITS TIME • Nearly 50% on routine work 26% 47% 27% • The Agile CFO, IBM Business Consulting Services, 2005 • Corporate Finance Departments Leaving Money on the Table , PWC Management Barometer, 2006

5. Globalisation Adds Complexity EXTENT TO WHICH VALUE CREATING ACTIVITIES INCREASE COMPLEXITY 77% of global CEOs say the level of complexity in their organisations is higher than 3 years ago Some Extent Large Extent Very Large Extent Percent Source: PWC, 9th Annual Global CEO Survey

6. Complexity Drives Up Costs • Fragmented systems • Varied policies, processes, controls, and systems • Manual processes Costs • Consolidated systems • Standard policies, processes, controls and systems • Automated and best practice processes Complexity

7. Back to the BasicsConsolidate, Centralise, and Standardise 50% Senior executives say simplification is driving the Finance agenda Source: PWC Management Barometer

8. Agenda Introduction and Overview Why Release 12? Key features What's in it for you? Q & A

9. Release 12 The Global Business Release THINK GLOBALLY To Make the Right Decisions WORK GLOBALLY To Be More Competitive MANAGE GLOBALLY To Lower Cost & Increase Performance Work better across applications, divisions, and regions Achieve global view of customer, supplier, partner & operations Implement, manage, and scale global applications easier • Integration with core industry applications • Self-service report formats and publication • Superior ownership experience • Flexible, centralised, global accounting structure • 300+ enhancements to best practice business processes • Comprehensive governance, risk and compliance platform • Truly integrated performance management • Real-time profitability analysis • Unified financial and operational analytic applications

10. Agenda Introduction and Overview Why Release 12? Key features What's in it for you? Q & A

11. PublicCompany SubsidiaryCompany(regional parent) SubsidiaryCompany(business parent) PublicCompany SubsidiaryCompany SubsidiaryCompany SubsidiaryCompany SubsidiaryCompany SubsidiaryCompany Legal OrganisationA Group can have many Legal Entities • pay the taxes - need tax registrations • trade and generate intercompany • transactions • own the money and bank accounts • file the accounts, and own the accounting • comply with statutory and other • regulatory requirements the “legal” in LE • … and this leaves the Operating Units • to get on with business. We care because Legal Entities:

12. -% General Ledger General Ledger Ledger & Ledger Sets Ledger & Ledger Sets BankModel Tax Engine InterCompany Multi-OrgAccessControl Inventory Dr Cr Receivables Projects Payables Purchasing Work in Process Global Financial Architecture • 6 Major Initiatives • Ledger and Ledger Sets • Subledger Accounting (SLA) • Multi-Org Access Control (MOAC) • Bank Model • Tax Engine (eTax) • Intercompany (AGIS) Subledger Accounting (SLA)

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

14. Ledgers and Adjustments ManagementLedger Set Corporate Ledger Set US Ledger Set Adjustment Ledger US Adjustment Ledger US Legal Ledger US1 Legal Ledger US1 Legal Ledger US2 Legal Ledger US2 Legal Ledger US3 Legal Ledger US3 For adjs and eliminations UK Ledger Set Adj Ledger Corporate Adj Ledger Corporate Adjustment Ledger UK Adjustment Ledger UK Legal Ledger UK1 Legal Ledger UK2 • Use an adjusting ledger to automate GAAP adjustments • Use a Global Consolidation System Ledger to eliminate • Use FCH for Consolidation • Use a GCS Ledger to map to the common COA

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

16. MOAC: Multi-Org Access ControlRole based access to Operating Units Perform multiple tasks across operating units without changing responsibilities Holland Legal Entity Belgium Legal Entity Denmark Legal Entity Functional Tasks • Accounting • Billing, Dunning & Collections • Procurement • Order Management • Payments • Data Management SingleResponsibility Denmark Operating Unit Belgium Operating Unit Holland Operating Unit Responsibility Responsibility Responsibility Responsibility Responsibility Responsibility

17. Multiple Organisation Access ControlSummary 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

18. Multiple Accounting RepresentationsAlternative Ledger vs. Adjusting Segment Ledger B Ledger A French Rules Plan Comptable French Calendar EUR US GAAPUS COA US Calendar EUR or Single subledger transaction can create multiple accounting representations and in multiple currencies Dr Cr Chose to use an alternative Ledger - or just an Adjustment Ledger or segment Subledger Accounting Payables Invoice

19. 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]

20. -% Data ManagementLeveraging centralised data model Payments Global Tax Cash Management Payables Authorities, Geographies, etc. Party Information Purchasing Banks and Branches Suppliers Trading Community Architecture Oracle Fusion Middleware ERP 3rd Party CRM

21. Inventory Projects Centralised Banking and PaymentsFunds Disbursements and Capture • Bank account is now associated with LE entity rather than Operating Unit • Single bank account serves multiple Operating Units • Any and all Operating Units associated with a ledger can be permitted to use the bank account LE OU A OU B OU C Plus Receivables • Centralised Credit Card Model • Credit Card Encryption • Supplier & Customer Banks in TCA Assets Purchasing Payables Work in Process E-Business Suite

22. Example : Shared Service Disbursement OU A OU B Centralised Accounting OU C Multiple Payment Instructions Banks Payments • Setup accounting policies • Select invoices from multiple OUs • Format for bank and disbursement countries • Send single instruction to bank • Generate separate payments for each OU Invoices

49. eBusiness Tax - Centralised Global TaxLess Complex Global Tax Compliance Benefits Solution Operational Efficiency • Automated processing based on predefined tax rules • Simplified tax configuration (shared across legal entities and Oracle apps) • Standard services to all eBusiness applications • Integration with external tax vendors (Taxware and Vertex in the U.S.) Global Management, Local Compliance • Single data model for rules and transactions across geographies and applications • Centralised tax repository provides global visibility • Self-Service for Tax Managers Information Visibility • Tax reporting ledger provides single source of the truth and complete auditability • Configurable tax reporting templates • Tax simulator for setup, rules, and transactions

50. 4Ps Configuration • 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 Place • Product - Inventory Linked • Product - Non-Inventory Linked • Transaction Input Factor (Intended Use, Product Override)* • Geography • User Defined Geography • Juirisdiction