R12 Overview for Federal Customer Advisory Board (CAB)

1. R12 Overview for Federal Customer Advisory Board (CAB) December 3, 2008 Scott Trivett, Applications Specialist Kevin Morgan, Sales Consulting Manager

3. Agenda Four Key R12 Features for Federal Customers • Subledger Accounting (SLA) • Multi-Org Access Control (MOAC) • Multiple Ledgers • New Procurement Capabilities

4. <Insert Picture Here> SubLedger Accounting

5. R12 – Sub Ledger Accounting (SLA) • What is SLA ? An evolutionary way to configure Oracle Financials to perform transaction accounting and associated general ledger updates based on an extremely wide range of processing parameters and transaction attributes SLA eliminates the use of Transaction Codes (TCs) to derive transaction debits and credits and provides more control for an agency’s accounting operations staff to define their own specific transaction posting rules and address their unique accounting needs Provides more posting flexibility and improves accounting data integrity

6. Dr Cr SubledgerAccounting Payables Invoice R12 – Sub Ledger Accounting (SLA) Ledger Agency ACS Mgmt Rules Federal Calendar USD • What is SLA ? • SLA encompasses a set of highly configurable options that are defined in a cascading manner to allow agencies to address their own unique accounting posting needs • These configurations are then leveraged when subledger transactions are processed in Oracle Financials

7. Overview of hierarchy of key SLA configurations Define primary ledger for postings and other secondary ledgers as needed Ledger Subledger Accounting Method (SLAM) Define one SLAM per ledger to link all relevant AADs Define one AAD per subledger (e.g., AP, AR, PO) to bring together all relevant Journal Line Definitions Application Accounting Definition Associate with an Event Class (e.g., Invoice) and Event Type (e.g., Validate, Cancel) Journal Line Definition Account Derivation Rule Journal Line Type Detailed posting logic is derived from these three setup options DR/CR Definitions Account Code Structure Value Rules “Bottom Up” configuration drives accounting in R12

8. R12 - SLA • One of the most powerful features is the ability to define Account Derivation Rules • These rules enable agencies to define very specific and precise conditions to determine the values of the USSGL and other segments in the Account Code Structure • EXAMPLE: • We can now define a very precise rule to derive the USSGL account value for a transaction based on other associated attributes such as funds category and fund expiration status

9. This Rule derives the allotment account based on values associated with Fund Category and Fund Expiration Status (as noted in the Conditions) These Conditions would be different for each allotment account (461002, 462002 and 465002) shown here

10. R12 - SLA • What are the major differences between Oracle Applications R12 and R11i in terms of accounting configurations and postings? • Setup rules for configuring accounting postings are consolidated and are more consistent for each module • There are no Transaction Codes (TCs) in R12 • New Drilldown queries • Enables users to drill from a subledger transaction to the accounting entries (debits and credits) that are associated with the transaction • System provides multiple processing options (Draft, Final and Final Post) to allow agencies to review and verify accounting results, especially when initially configuring the system, to ensure accurate general ledger postings Simplifies initial set-up and on-going system configuration process

11. Why is SLA Good For Federal Agencies? • Consolidates the set-up of the accounting configuration in Oracle Applications • Eliminates the need for users to know accounting and transaction code values at transaction time • Directly reduces margin for error due to incorrect usage of accounts • Handles any and all transaction debits and credits including Prior Year Accounting (PYA)

12. <Insert Picture Here> Multi-Org Access Control

13. Functional Tasks • Journal Entries • Requisitions & Purchase Orders • Receiving • Invoice Receipt, Disbursement, InterAgency • Customer Data Management • Accounting Setup SingleResponsibility MOAC: Multi-Org Access ControlRole based access to Operating Units Perform multiple tasks across operating units without changing responsibilities Component 1 Legal Entity HQ Legal Entity Component 2 Legal Entity Component 2 Operating Unit HQ Operating Unit Component 1 Operating Unit Responsibility Responsibility Responsibility

14. MOAC In Action Operating Unit is a parameter to perform transaction entry, execute inquiries and run reports

15. Why is MOAC Good For Federal Agencies? • One Responsibility can access all, some or a single Operating Unit • Sets the Stage for True Shared Services Operations

16. <Insert Picture Here> Multiple Ledgers

17. Implements the 4 C’s: • ACcounting Method • Chart of Accounts • Calendar • Currency LedgerOne Repository of Official Financial Record Ledger USSGLAgency Fed Calendar USD Fund Balance at Org A (COA) is 10.2B USD (Currency) on Sept 30, 2008 (Calendar) according to Agency definitions (ACcounting Method)

18. Multiple Accounting RepresentationsCompliance: Agency and CGAC Agency CGAC Agency RulesAgency COA Fed Calendar USD CGAC Rules CGAC COA Fed Calendar USD Agency RulesAgency COA Fed Calendar USD Single subledger transaction can create multiple accounting representations and in multiple currencies Dr Cr Subledger Accounting Payables Invoice

19. Why are Multiple Ledgers Good For Federal Agencies? • Enables agencies to continue operating with their traditional ACS and associated ledger – And, also allows agencies to define other ledgers to reflect changing requirements (such as CGAC) or agency reorganizations

20. <Insert Picture Here> Procurement

21. Advanced Procurement R12The Procurement Professional’s Release –Summary of Key Features • Unified work-center for all procurement responsibilities • Improved support for complex goods-and-services • Position Hierarchy Approvals

22. Multi-Org Access • Reduced pop-ups and duplicate screens • Re-designed and streamlined entire workflows • Reduced the number of steps to complete key tasks • Improved overall look & feel and visual style • Increased personalization capabilities Professional Buyer’s Work Center Command and control for the procurement professional

23. ‘Review Changes’ enables you to review each change in detail After review, changes are either accepted or rejected Added, Updated and Deleted clauses are clearly marked

24. Procurement for Complex ServicesProcure to Pay Support for Complex Payments Request for Service Track Progress Source Process Payment Advance Payment Author Contract Define Progress Milestones and Associated Payments

25. Capture Progress Payment Schedule Procurement for Complex ServicesDefine Progress Payment Schedule • Flexible Progress Payments - Rate, Lump sum & Milestone Pay Items • Work Confirmations, to include integration with Accounts Payable to generate invoices • Increased integration with iSupplier Portal

26. <Insert Picture Here> • R12 Cameo Demos • Invoice Workbench • Subledger Accounting • Procurement Buyers Workbench