Oracle E-Business Suite What’s New in Financials Release 12

1. Oracle E-Business SuiteWhat’s New in Financials Release 12 Sue Guggenberger Sales Consultant

2. Today’s Quiz What percent of companies have … Source: The Agile CFO, IBM Business Consulting Services

3. Finance PerformanceSuffering from Lack of Standardization • 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

4. Agenda • What’s on the mind of the CFO? • How can Financials Release 12 help? • Why Upgrade?

5. Today’s CFO Agenda

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

7. 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

8. Back to the BasicsConsolidate, Centralize, and Standardize 50% Senior executives say simplification is driving the Finance agenda Source: PWC Management Barometer

9. <Insert Picture Here> Anthony Salcido VP and Corporate Controller, Toyota Motor Sales USA “We’ve provided corporate assurance from a controllership perspective by centralizing our foundational accounting activities, defining our corporate policies and procedures, and standardizing our processes.”

10. How Oracle Financials Can HelpThe World’s Most Flexible and Complete Solution

11. How Oracle Financials Can HelpThe World’s Most Flexible and Complete Solution

12. How Oracle Financials Can HelpThe World’s Most Flexible and Complete Solution

13. How Oracle Financials Can HelpThe World’s Most Flexible and Complete Solution

14. How Oracle Financials Can HelpThe World’s Most Flexible and Complete Solution

15. Agenda • What’s on the mind of the CFO? • How can Financials Release 12 help? • Why Upgrade?

16. 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 Oracle’s products remains at the sole discretion of Oracle.

17. Financials 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 • Truly integrated performance management • Real-time profitability analysis • Unified financial and operational analytic applications • Flexible, centralized, global accounting structure • 300+ enhancements to best practice business processes • Comprehensive governance, risk and compliance platform

18. <Insert Picture Here> WORK Globally

19. -% Dr Cr Global ArchitectureMore Control, Greater Flexibility, Lower Costs 2 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 3 E-Business Suite ROLE BASED ACCESS to Operating Units 3rd PartySystems Inventory Receivables Projects Purchasing Payables Work in Process

20. Must Share: • Chart of Accounts • Calendar Ledger C US GAAP US COA US Calendar USD 1 Ledger A Ledger B • Defined by 4 C’s: • Accounting Convention • Chart of Accounts • Calendar • Currency US GAAPUS COA US Calendar EUR French Rules Plan Comptable French Calendar EUR Ledger D US GAAP US COA US Calendar GBP 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

21. LE’s in Release 12 • Tax • Registered companies calculate, file, and pay the transaction taxes they owe • Intercompany • Do business between and across your registered companies with full legal documentation • Bank Model • Registered companies use their money to pay their bills, etc. • Accounting • Assign books, bookkeeping rules and currency management to your registered companies Get the Legal Entity Right Compliance falls into place 2.1 Why We Care • LEs pay the taxes • Need tax registrations • Trade between LEs • Need intercompany • LEs own the money and bank accounts • LEs file the accounts • Takes care of accounting

22. Centralized Legal Entity ManagementEasier Compliance for Complex Structures 2.1 • Registered Company Requirements • ACCOUNTING • Manage books, bookkeeping rules and currencies • TAX • Calculate, file, and pay transaction taxes • INTERCOMPANY • Legally document business transactions between registered companies • BANK MODEL • Segregate money between registered companies to pay bills, etc. PublicCompany SubsidiaryCompany(regional parent) SubsidiaryCompany(business parent) PublicCompany SubsidiaryCompany SubsidiaryCompany SubsidiaryCompany SubsidiaryCompany SubsidiaryCompany Legal entities (parent and subsidiary) “Group” structure

23. -% Dr Cr 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 PartySystems Inventory Receivables Projects Purchasing Payables Work in Process

24. 1 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

25. Inventory Projects Centralized Banking and PaymentsFunds Disbursements and Capture 2.3 • 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 • Centralized Credit Card Model • Credit Card Encryption • Supplier & Customer Banks in TCA Assets Purchasing Payables Work in Process E-Business Suite

26. Example: Shared Service Disbursement OU A OU B Centralized Accounting Single Payment Instruction OU C Bank 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

27. Centralized Global TaxLess Complex Global Tax Compliance 2.4 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 • Centralized 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

28. Parties  Compliance, Assurance  Efficiency, Global Visibility Places Purchasing Products Single Interface for Transactions Payables Processes Calculate TaxAmount Tax Status& Rate DetermineRegimes ApplicableTaxes Taxable Basis  Extensible  Service Oriented Architecture Sales Orders Transparent Integration with Tax Partner Services Receivables Tax Transactions Taxes, Rules Tax Reports - PDF, HTML, RTF- Security enabled Oracle eBusiness TaxProcessing taxes for transactions and reporting Transactions …

29. Centralized Intercompany Faster Period-End Close 2.5 Advanced GlobalIntercompanySystem SubledgerInvoices &Documents Manual Entry Open Interfaces / API • Generate subledger invoices • Control transaction entry with Intercompany Calendar • Fully Configurable Approval Rules • Centrally defined Intercompany Accounts • Transaction-level balancing Online Reconciliation Reporting Excel(Web ADI) XML Publisher Reports Dr Cr Subledger Accounting General Ledger Receivables Payables

30. 3 Role-Based AccessMore Productive Shared Services Operations 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

31. <Insert Picture Here> Governance, Risk and Compliance

32. Global Compliance and Reporting*Integrated Financial Reporting & Compliance Mgmt Financial Consolidation Hub New in FCH • Monitor consolidation process and certification status • Drill-back to certification status in ICM • Spreadsheet drill-back to source transactions • Dynamic spreadsheet-based statutory and mgmt reporting Governance, Risk & Compliance New in GRC • Compliant access provisioning • Continuous monitoring of profile options • Monitoring of application controls at supplier sites • Online and report history of application control changes * Available Pre-R12

33. Global Visibility and IntegrationFinancial Consolidation Hub One-Touch Consolidation Data Transformation & Validation Oracle EBS Results Auditing PeopleSoft E Operating Balances FinancialConsolidation Report Generation JD Edwards E1 SAP Multi-Dimensional Analysis Legacy Apps ComplianceCertification

34. Financial Consolidation Hub Spreadsheet Reporting with Live Drill Interactive spreadsheet with live drill to transactions

35. Insight Processes Risk & Compliance Mgmt Controls Management Policy Mgmt Industry Specific Risk & Control Intelligence Applications Oracle SAP Custom Legacy Other Operational Intelligence Infrastructure Services Content Mgmt Identity Mgmt Change Mgmt Data Security Data Audit Performance Management Repository Oracle Governance, Risk, and Compliance

36. Oracle Governance, Risk, and ComplianceBest-in-Class Infrastructure Automates Enforcement Insight Processes • Ensure information reliability with content security, records retention, and identity management • Protect information assets across the entire technology stack • Enforce best-practice segregation of duties, configuration and change management procedures Risk & Compliance Mgmt Controls Management Policy Mgmt Industry Specific Risk & Control Intelligence Applications Oracle SAP Custom Legacy Other Operational Intelligence Infrastructure Services Content Mgmt Identity Mgmt Change Mgmt Data Security Data Audit Performance Management Repository

37. Insight Processes Risk & Compliance Mgmt Controls Management Policy Mgmt Industry Specific Risk & Control Intelligence Applications Oracle SAP Custom Legacy Other Operational Intelligence Infrastructure Services Content Mgmt Identity Mgmt Change Mgmt Data Security Data Audit Performance Management Repository Oracle Governance, Risk, and ComplianceComprehensive Applications Control Costs and Risks • Standardize onbest-practice frameworks to meet evolving GRC demands • Automate key GRC processes for risk assessment, control design, policy creation, hotline intake, control monitoring and case management • Streamline specialized GRC processes for highly-regulated and risk-sensitive industries

38. Insight Processes Risk & Compliance Mgmt Controls Management Policy Mgmt Industry Specific Risk & Control Intelligence Applications Oracle SAP Custom Legacy Other Operational Intelligence Infrastructure Services Content Mgmt Identity Mgmt Change Mgmt Data Security Data Audit Performance Management Repository Oracle Governance, Risk, and ComplianceIntegrated Business Insight Ensures Accountability • Improve governance with timely compliance, risk, and performance management info • Provide evidence of IT and business process control withauditor-ready reporting • Optimize business performance through risk-aware strategic planning

39. <Insert Picture Here> THINK Globally

40. Work Think Manage Executives Analysts Managers Reporting Planning SensorBasedServices Users Truly Integrated CPM Applications • Make timely decisions with integrated information systems • Target information delivery with role-based dashboards • Protect organizational integrity with secure information delivery Consolidation & Compliance ProfitabilityAnalysis Forecasting& Modeling Portfolio Analysis OperationalReporting PerformanceScorecards Network Optimization Inventory Optimization Transaction Processing Financials, Supply Chain, Projects,PLM, Sales & Marketing, HR, Service

41. Oracle BI Foundation Comprehensive • Integrated BI platform & broad range of BI applications • Powerful OLAP, “Speed of thought” response • Broadest spectrum of BI functionality Hot Pluggable • Heterogeneous ERP, CRM, DW, & OLTP systems • Heterogeneous database technologies • Heterogeneous middleware, ETL, & BI tools Pervasive • User self-service with superior tools • Multi-channel information access & delivery • Consistent, accurate information from Common Enterprise Information Model

42. The Best of Both Worlds Advanced BI Server Hyperion Best In Class PM Applications Enterprise Information Model Flexible Information Access Comprehensive BI Applications Market Leading OLAP Oracle

43. Integrated, Open, Best of Breed Advanced BI Server Advanced BI Server Hyperion Best In Class FPM Applications Best In Class PM Applications Enterprise Information Model Enterprise Information Model Flexible Information Access Flexible Information Access Comprehensive BI Applications Comprehensive BI Applications Market Leading OLAP Market Leading OLAP Oracle

44. <Insert Picture Here> MANAGE Globally

45. Work Think Manage Comprehensive Integration Repository A Catalog of All EBS Integration Points • Enable key integration types • Business to Business • Enterprise Application Integration • Business Process Management • Business Activity Monitoring • Support industry-standard messages • Support standards-basedXML documents • Search and view available interfaces via powerful UI • Automatically keep in step with source code via standard patching • Web Services • Public Java & PL/SQL APIs • Business Events • Batch Interfaces

46. Work Think Manage Comprehensive Integration Repository A Catalog of All EBS Integration Points • Enable key integration types • Business to Business • Enterprise Application Integration • Business Process Management • Business Activity Monitoring • Support industry-standard messages • Support standards-basedXML documents • Search and view available interfaces via powerful UI • Automatically keep in step with source code via standard patching • Web Services • Public Java & PL/SQL APIs • Business Events • Batch Interfaces

47. Work Think Manage Integration with Core ApplicationsOracle|Retek Integration with BPEL • Lower cost integration between disparate systems • Better performance with integrated business flows across applications Accounts Payable Merchandising Inbound Retek Data • Matched invoices • Credit notes • Debit memos • Rebates • Daily sales • Cash and deposits • Inventory • Sales data Invoice Matching General Ledger E-Business Financials Accounts Receivable Sales Audit Outbound Financials Data • Payment terms • GL accounts • Currency rates • Suppliers • Partners • Addresses • Freight terms Cash Management Stock Ledger

48. Work Think Manage -% Data ManagementLeveraging centralized 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

49. Work Think Manage Self-Service ReportingXML Publisher Reporting Evolution Benefits • Replaces most 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 • Put reporting in the hands of the business user • Create report formats using desktop tools (Adobe Acrobat, MS Word, MS Excel, and XSL Editors) • Publish in any format, to the web and electronically • Drive reporting consistency with one source of data “Oracle’s new XML Publisher is visionary and empowers end users. This new capability gives customers the look and feel of Excel with a desktop publishing look to reports, and enables users to create their own reports, minimizing the dependency on the IT staff.” -- Sean Malinski, Accenture Partner, Global Business Solutions - Oracle Practice

50. Work Think Manage Superior Ownership Experience11i User Experience • Define/Assign Set of Books, Specify Conversion options/rules Defining a set of books takes 5 tabs to accommodate all fields and rules Multiple steps required to assign sets of books and specify conversion options/rules