Upgrade to R12 Now – The International and Multi-National Arena

1. Upgrade to R12 Now –The International and Multi-National Arena Presented by: Marsha Edgell, BizTech Thomas Simkiss, BizTech

2. Upgrade to R12 Now – OAUG eLearning Sessions

3. Thomas Simkiss – COOOracle Applications Practice Lead • Professional Summary • Senior functional and technical consultant • 15 + years combined industry and consulting experience • Roles in over two dozen packaged software implementations, experience with business process redesign and SOX compliance reviews. • Thomas is a CPA in NJ, and a member of the PA, NJ, and American Bar Association. • Qualification Summary • Specific areas of Oracle knowledge include releases 10.7 through 12.1.3 in Financials, Manufacturing, Project Costing and Billing, Discoverer, and Reports Developer, and OBIEE RPD development and deployment. • UPK 3.1 through 11.x Mobile: 215-990-9001 Email: TSimkiss@BizTech.com Website: www.BizTech.com Prior Experience: Project Experience:

4. Lee Briggs, BizTech • Director, Financials Management Practice • 12 Years of experience as an Oracle Application implementation consultant • Over 38 Full Cycle implementations • Coordinator of the ADI SIG • Oracle Certified Specialist in General Ledger and Payables • Prior Presentations at Collaborate • XML Publisher – Taking Reports from Drab to Fab! Collaborate 08 & 09 • FSGs in Release 12: Since ADI Is Not Supported, How Do I Use BI Publisher? Collaborate 10 • Desktop Integrators – You Mean I Can Load Data Straight From a Spreadsheet? Collaborate 11 • Inter and Intra Accounting in R12 – A Deep Dive Collaborate 12

5. Subject matter expert in financial business process - with 25+ years of IT experience in design, development, implementation and process improvement • Author of “Oracle E-Business Suite Financials R12: A Functionality Guide”, • Experience of multiple full life cycle implementations • Project Management experience of leading at least 12+ projects to successful completion • Strong experience in conducting workshops on business processes • Experience (partial list) 408 859 4484 mohan@fscpsolutions.com www.fscpsolutions.com

6. Marsha EdgellOracle Applications Specialist • Professional Summary • Senior functional consultant • 20 + years combined industry and consulting experience • Roles in over thirty packaged software implementations • Extensive experience with on-shore / off-shore resource management, coordination and hiring • Qualification Summary • Specific areas of Oracle knowledge include releases 10.7 through 12.1.3 in Financials • PMP Certified • Director of Global IT Operations in a multi-national organization Mobile: Email: Website: www.BizTech.com Prior Experience: Renal Treatment Centers Project Experience:

7. Douglas Volz • Professional Summary • Helping people use Oracle since 1990 for Cost Accounting and related Financials, Manufacturing and EAM modules. • 30+ years industry, design and consulting experience, specializing in the design, implementation and project delivery for Cost Management business solutions • Specific areas of expertise include profit in inventory, inter-company, A/P accruals, multi-org inventory reporting, WIP analysis, inventory reconciliation and margin analysis • Presenter at Collaborate (OAUG) and UKOUG since 1996 • Multi-national experience in twelve countries • Qualification Summary • Former co-designer for Oracle Cost Management • Lead the OAUG Cost Management Special Interest Group • Prior Accounting and Cost Management industry experience +1 510 755 7050 doug@volzconsulting.com www.volzconsulting.com Sample Project Experience:

8. Bob BullmanOracle Applications Practice Director Professional Summary: • Professional Supply Chain Consultant (15+ years implementing Oracle Applications) • Held multiple management positions at Oracle with in the Application’s group • Advanced Planning and Distribution optimization expert • R12 Solution Architect ( Manufacturing, Order Management, and Service ) • Techno-Functional consultant Qualification Summary: • APICS Certified at the Fellow level • Prior certification in Oracle Manufacturing and Supply Chain modules • Bachelors Degree in Finance Project Experience: • Full suite R12 Financials, Order Management, and Manufacturing, including VAT taxation • Implemented many other R12 and 11i installs, as well as prior version of Oracle including CRM (E-Bus only) • Presented at many different types user groups and professional organizations (APICS, OAUG) • Designed and coded many extensions to the E-Business suite, as well as performed numerous data conversions.

9. Mike Lennon, BizTech • Managing Partner & Projects Practice Lead • 15+ Years of experience as an Oracle Application Implementation Consultant • Over 50 Full Cycle implementations • Prior OAUG Presentations: • Using HR & Projects – Capture Resource Time & Expense (CWK Flow) • Implementing FA Book Security • Transforming E-Business Strategy into Practice • Deploying WorkFlow. • Financial Processing and Reporting Made Easy with ADI. • Newborn (Griffin) & Golf

10. Plan| The Right Strategy Building a Business Case To Upgrade

11. R12 Upgrade Key Questions … • Would you like to reduce reliance on IT staff for report creation? • Are you satisfied with the number of days it takes to close at period end? • Do you have a large number of sets of books? • Do you want to improve reconciliation and reporting at period end? • Would you like to increase the efficiency of your tax and payment processing? • Are you required to maintain multiple accounting representations? • Would you like auditable and transparent accounting entries accessible with full drilldown? • Would you like to gain efficiency with processing and reporting across operating units? • Would you like to implement shared service centers?

12. Why Upgrade to R12Straight Talk from Customers “We have 60 sets of books and see tremendous efficiencies with running processes across these sets of books using Ledger Sets.” “Ability to issue one payment instruction to the bankfor payments of invoices in multiple operating units was viewed as a huge benefit from the user community.” “Multi-Org Access Control (MOAC) will definitely reduce the workload and the number of people performing process related tasks. The users are very excited and the benefits of MOAC were readily visible to them.” “The ability to access multiple operating units with a single responsibility can simplify SOX compliance monitoring.” “The functionality offered with Advanced Global Intercompany System (AGIS), specifically the creation of physical invoices to be created for I/C transactions in Payables and Receivables eliminates many customizations in this area.” “Centralization of subledger accounting rules would minimize set up and maintenance, providing greater financial control, and enforcing a consistent approach for true global accounting.” “Banks, taxes, payments, and accounting – everything that becomes centralized will bring tremendous efficiencies to our organization.”

13. Plan| The Right Strategy Why Upgrade to R12?

14. Continued Release and Innovation Released EBSR12 Major Release EBS R12.1 EBS11i10 EBS 12.1.2 EBS12.1.3 Minor Release 2004 2007 2009 2011 2010 Procurement, HCM, Service, SCM, Projects, Financials, Technology, MDM Financials,Technology Functional Innovation

15. E-Business Suite Release 12.1 Focus on Opportunities to AchieveRapid Return Invest in Ways to Standardize and Simplify with a Global Business Platform

16. Greater Control, Increased Flexibility • WHAT’S NEW IN 12 • Ledgers and Ledger Sets • Rules-based Accounting Engine • Unified Bank Account Model • Centralized Payments • Global Tax Engine • Global Intercompany System ONE GLOBAL TAX ENGINE • Centrally managed rules • Consistent tax services Tax Determination Process Regime Applicable Taxes Tax Status, Rate Taxable Basis Tax Calculation • RESULTS • Faster, simpler period end processing • Easily meet local accounting requirements • Streamline intercompany trading and reconciliation • Adapt quickly to regulatory changes • More productive shared service centers CENTRALIZED PAYMENTS ENGINE UNIFIED BANK ACCOUNT MODEL Funds Capture and Disbursement Legal Entity Operating Units Payments Engine

17. A Deep Dive into General Ledger “Legal Entity” Chart of Account qualifiers Data Access Sets Ledger Sets Sub-ledger Accounting (SLA) Report Manager Web ADI Consolidation - Chart of Accounts Mapping

19. Accounting Flexfield Qualifiers

20. Chart of Account – New Qualifiers • Secondary tracking segment • Allows to manage Cumulative Translation Adjustment, Retained Earnings and Gain/Loss accounts for a combination of the balancing and a secondary segment • Intercompany • Allows for automatically balancing transactions between balancing segment values, both intra- and inter-company (across legal entities) • Management segment (R12) • Allows securing data for reporting by values in a specific segment (qualified as Management Segment)

21. Ledger and Data Access Sets • Ledger Sets • Can be used to group ledgers into a single bucket • Ledgers MUST have • Same Chart of Accounts • Same Calendar and period type combination • Processes that can be performed in unison on a ledger set • Open/Close periods • Revaluation and Translation • Recurring Journals • Inquiry and Reporting

22. Web ADI A new framework has been created to enable integration with data creation This new framework allows data integration with any Oracle product Only few products have pre-delivered solutions (FA, GL, HR, etc..) You can create one for AP or SLA or any other product The Web ADI is faster and only allows data entry – no reporting

23. Report Manager • Replaces the capability to generate FSG reports in Desktop ADI • Has additional functionality than what was available in Desktop ADI • Report Manager • can store reports output in the database as a static source • allows access security to be managed within the reports repository • allows access to reports via a menu “function” • allows similar reports to be stored with a “period” identifier

24. International and Multinational Enhancements Subledger Accounting Secondary Ledgers Advanced Global Intercompany Global Financials eBusiness Tax Payments

25. Subledger Accounting • Rules based accounting engine allows for multiple representations of the same transaction • Payables invoice in Europe accounted in • US GAAP • French Statutory Chart of Accounts • IFRS • Secondary ledgers support currency and historical reporting needs

26. Advanced Global Intercompany • Streamline Intercompany trading, billing, and payments across ledgers and currencies • Allows compliance with local regulations • Treat intercompany transactions as “arms length” with AR and AP Invoices • Purge rejected transactions. Preserve database space

27. Financials for EMEA Payables Turnover Report Supplier Statements Receivables Aggregate VAT Statement Customer Statements Regional Cash Desk Report Account Analysis Report Account Analysis Detailed Reporting Enhanced Statutory Report Extracts for Italy

28. Financials for India • Enhanced Tax Support • Fringe Benefit Tax Support • Inclusive Tax Support • Tax Information on Purchase Order Workflow Notification for India • Reassessing Service Tax on Receipt of Foreign Payments for India • Display of Value Added Tax (VAT) Invoice Number in Receivables Transaction Workbench for India • Retroactive Pricing Support • Payables Invoices Support for India • Advanced Pricing Support for India

29. eBusiness Tax • Financials for EMEA • Financials for India • Taxes in Payables may be changed from Exclusive to Inclusive on the fly • Greater support for VAT recovery • Golden Tax Adaptor Enhancements for Mainland China

30. Payments • Banks are owned by Legal Entities • Payments across operating units supported via MOAC • Single Euro Payments Area (SEPA) Support

31. R12 Cost Management Enhancements • MOAC – Multi-Org Access Control • Subledger Accounting – OPM & Discrete Costing • COGS Recognition • “As Of Dates” for Inventory Reporting • Re-Designed A/P Accruals

32. R12 Multi-Org Access Control • Mostly affects “operating unit” level functions • Allows you to access information across multiple operating units without changing responsibilities • Set up a security profile listing the operating units to access • Run Security List Maintenance concurrent program • Assign the security profile using the MO: Security Profile

33. Oracle Discrete Costing and SLA • Flexible variance account recognition for: • Invoice price and purchase variances • Average cost adjustment • Standard cost adjustment • Manufacturing variances • Account aliases • Freight charges • Most other inventory, manufacturing and related account entries

34. COGS Recognition • In R12 customer shipment entries go to deferred COGS • Revenue and COGS are explicitly matched • AR: “Autoinvoice” & “Revenue Recognition Master Program” • CST: “Inventory Cost Processor” or “Record Order Management” • CST: “Collect Revenue Recognition Information” • CST: Then “Generate COGS Recognition Events” • New Accounting Entries to clear deferred COGS • Use the COGS Revenue and COGS Matching Report

35. COGS Recognition – Accounting Entries • New Accounting Entries to clear deferred COGS • Use the COGS Revenue Matching Report Deferred COGS “True” COGS Inventory 1. Customer Shipment 10 10 10 10 2. COGS Recognition

36. Inventory Value Reports “As Of Date” • Four major reasons for month-end inventory-out-of-balances • Sharing system accounts leading to poor or no ability to reconcile • Using the same offset account as valuation on miscellaneous inventory transactions • Manual journal entries • Having poor month-end cut-off • Proper System Setup Fixes the first three (setups and G/L security rules) • Now Inventory Value Reports have an “As Of Date” so you get accurate month-end valuation reporting

37. A/P Accruals • Perpetual A/P Accruals are Completely Rewritten • Monthly load into summary tables • Excellent detail and summary reporting (same report/two templates) • A/P Accrual write-offs go to your G/L • Works right out of the box! • Period End Accruals: • Calculate Accrual Balances at PO Distribution Level • Period-end accrual entries stored in a separate accounting table and automatically reversed in the new month • Uninvoiced Receipts Report and Period-End Accruals use same underlying code / same results • Challenges with R12 Perpetual A/P Accruals • Only shows your net position, only remaining balances • Must reconcile month-by-month, cannot go back • Can be difficult to identify reconciliation issues • Intercompany A/P Accruals are now on the Miscellaneous A/P Accrual Reconciliation Report

38. R12 Manufacturing and OM Engineering (same approvals) Capacity Mfg. Scheduling PO Receiving Bills and Routings

39. Update Material Control in Common Bills • While retaining a common BOM relationship, users can update the following attributes at the org level: • Operation Sequence • WIP Supply Type • Sub-Inventory • Locator • Include in cost roll-up • Benefits: Facilitates standardization by deploying common bills while enabling typical organization overrides

40. Inventory • Material Status • Used for Lot control before QA Approval is complete you can not reserve a lot. • Defining Picking Rules • Used to only be one for shipping and Discrete Job picking. • Now you can have many! • OPM Inventory Convergence

41. Material Status Material Status control restricts the movement and usage of portions of on-hand inventory. Using material status control enables you to control whether you can pick or ship an internal order or sales order, or issue material for a work order. You can also specify whether material needs to be quarantined until you inspect it. In addition, you can determine whether products with a particular status can be reserved, included in available to promise calculations, or netted in production planning. You assign material statuses at four levels: subinventory, locator, lot, and serial.

42. Enhanced Picking Rules You can create picking rules that enable you to sort picks based on criteria that you define for sales orders, process manufacturing batches, or work in process jobs. Oracle Inventory reviews the picking criteria order and the options for each criterion.

43. Purchasing/MRP • Auto-Approval Tolerances for Change Orders • This one is long overdue, still creates new revision. • Changing dates when not using iSupplier can be very time consuming and most often didn’t require approval. • Buyer Work Center • HTML PO Summary and change without so many levels. • Easier user interface with all a buyer needs in one html form – Auto-create PO, create and query PO’s and blankets • Rescheduling of PO from ASCP • Works well for Planner/Buyer role (i.e. the planner for an item is the buyer too) • PI Publisher used for PO layout.

44. Supplier Management

45. Order Management Adaptable User Interface Item Order-ability Enhanced Inventory Reservations (Reservations Against WIP)

46. Adaptable User Interface

47. Item Order-ability Businesses need to be able to order specific products depending on specific customers. Instead of being able to view and select all items for all customers in the sales orders window, you can now restrict the item list based on customer and other related criteria. If the value of the profile option OM: Use Materialized View for Items LOV (HonoursItem Orderability Rules) is set to No, then the Ordered Items LOV lists all the items of the item validation organization of the current operating unit. This doesn't consider the defined item orderability rules, however if there is a defined rule that prevents the item from being ordered, then an error message is displayed during the saving of the order. You will not be able to save the order.

48. Installed-Base • Entirely new HTML user interface...dramatically improved functionality “11.5.10 to be virtually unusable in it’s former state” • Increased integration across Service Contracts, OM and Field Service allowing easy instance creation, update and transfer

49. Oracle Projects 12.1.1New and Enhanced Functionality Enhanced Reporting Options and Capabilities Validate Project & Assignment Dates Improved Workplan Usability Enhanced Budget and Forecast Usability Subcontractor Payment Controls Stronger Resource Planning Capabilities Greater Control on Services Spend Streamlining Cost Adjustment Processing Adjusting to Contract Changes Reimbursable Agreement Processing

50. Project Managers Reporting PackReporting Capabilities Capabilities: • Access information in disconnected mode • Pre-seeded with several useful reports that can be customized • Configure the report layout and data • Schedule the creation and distribution of reports • Choose from various types of report output options Key Benefits: • Allow managers to stay “in the know while the go” • Simple interface to create and modify reports means less specialized skills required