Professional Documents
Culture Documents
1 and beyond
Jacques Bouchet Applications Global Strategy
BUSINESS IMPLICATIONS Companies must compete in local markets with localized solutions.
Statutory financial reporting
G7
E7
Local tax Local valuation and costing Local accounting Local statutory reporting Local payments
2050 MER
2005 PPP
2050 PPP
Globalization is unstoppable. Regardless of geography, industry or income, companies are globalizing to gain new customers and access new markets. Is this a good thing? Nearly two-thirds of the CEOs we surveyed are positive about the impact that globalization will have on their organizations over the next three years.
Source: 9th Annual Global CEO Survey Globalization and Complexity; PwC 2006
GLOBALIZATION
Todays workforce, customers, suppliers, and competitors have all become global
Globalization brings complexity with it, and unnecessary complexity drives up costs
Companies are under pressure to do more than just meet the letter of the law
Requirement
Extend core business processes and international support
Solution
Manage business systems globally
Oracle Capabilities
Standards-based business platform Native global platform Extensible Business Objects Global financial engines eBTax BI Publisher Subledger Accounting Payment Engine Localizations Translations User-definable options
Applications
Financial Management Human Capital Management Supply Chain Management
Global Architecture
Legal Entities Ledgers Subledger Accounting Tax Engine Inter Company Payments Engine
Global Architecture: Adapt quickly to changing global requirements Global Platform: Extend core business processes and international support
Global Platform
Common Information Model
Data Formats Languages BI Publisher SOA AIA
Add-on Localizations *
Delivered via Metalink, by Regional Field Centers
Global Architecture
Accounting Engine Bank Model Ledgers MDM Payments Engine Tax Engine
Partner Localizations
Delivered by Partners
Global Platform
Common Information Model
Data Formats Languages Reporting SOA AIA
Not covering: Over 300 new features in Release 12.0 Additional 270 features in Release 12.1 9 new products in Release 12.1 Analytics Fusion Middleware
2. 3. 4. 5. 6.
Tax Engine
Inter Company
Bank Model
Inventory
Receivables
Projects
7.
Legal Entities
OARDC Beijing
Where LE fits in
Transaction Taxes Complies & Files, Pays
Registrations with Authorities Files
Exists Locally
Legal Entity
Accounts for itself in a Ledger or BSVs
Et Cetera, 11i
Operating Units
Establishments
Files Registrations with Authorities
Legal Entity:
Vehicle for compliance
Ledger
Legal Entity
Do business between and across your registered companies or BSVs with full legal documentation Files
Legal Entity:
Ledger Registrations Have your registered companies use their money to paycompliance Vehicle for their with Authorities bills, et cetera
Ledger Sets
Ledger Sets
Global Information At A Glance
Ledger Set Share: Chart of Accounts Calendar
Ledger C US GAAP US COA US Calendar
USD
EUR
EUR
AUD
Reporting Currency
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]
Ledger Set US Ledger Set Legal Ledger US1 Legal Ledger US2 Legal Ledger US3 Adjustment Ledger US Corporate Ledger Set
adjustments eliminations
UK Ledger Set Legal Ledger UK1 Legal Ledger UK2 Adjustment Ledger UK Adj Ledger Corporate
Automate GAAP / IAS adjustments in an adjusting ledger Eliminate within a Set with GCS Consolidate Formally in FCH Map from a non-conforming COA with a GCS Ledger
Set of 26 Ledgers in one country Euro Zone in One Ledger Set My Corporate Set in US GAAP Statutory Set for Country Y Subs Division X Worldwide Ledger Set
SubLedger Accounting
Centralized Set-up
Accounting Setup Manager
Define Legal Entities & Associated Rules Ensure Complete & Accurate Setup via Online Checklist Define Multiple Ledgers for Rules & Currencies One Place to manage Your Global Accounting Rules, Currencies, Ledgers, And Ledger Sets
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
Receivables
Projects
Streamline closing process with common posting engine Auditable and transparent entries accessible with full drilldown
Payables
Subledger Accounting
Centralized Rules, Common Repository: Global Control
Ledger French Rules Plan Comptable French Calendar
What it is
Some Benefits
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 Standardization Local Rules = Improved Local Compliance Automate Apples to Apples Adjustments Improved Auditability Improved Internal Control
Dr
Cr
Subledger Accounting
Payables Invoice
Subledger Accounting
Transaction Level Compliance
National Daily Journal Requirements Internal Control: Central Definitions, Eliminate overrides
Policy Enforcement in Volume Processing
Transparent Accounting Rules Debits & Credit at the point of the event Automate Foreign Operation adjustments Event Class: Invoices Reconciliation Invoice Approved Event: France (EUR) Ledger: Platform 20-Sep-2005 GL Date: Description: Office supplies In accordance Type Account with the Asset purchase 01.9100010.100 Underlying Misc expense 01.9100020.100 Misc expense 01.9100020.200 Records Misc expense 01.9100020.300
VAT 01.3100060.000 Accounts Payable 01.7000010.000
Description
Debit
Credit
Paris: furniture 10,000 Paris: supplies 400 Nantes: supplies 100 Nice: supplies 300 VAT@17% 1,836 ABC Supplies 12,636
12,636 12,636
Multiple Ledgers
EUR
EUR
or
Dr Cr
Subledger Accounting
Payables Invoice
Single subledger transaction can create multiple accounting representations and in multiple currencies
EBusiness Tax
Compliance, Assurance
Receivables
Tax Reports
- PDF, HTML, RTF - Security enabled
Tax Transactions
Taxes, Rules
Web UI
Open Interfaces / API Generate subledger invoices Excel (Web ADI) Control transaction entry with Intercompany Calendar Fully Configurable Approval Rules Flexible Security Model Centrally defined Intercompany Accounts XML Publisher Reports Online Reconciliation Reporting
Dr
Cr
General Ledger
Subledger Accounting
Receivables
Payables
Centralized Banking
Shared Services Disbursements
Bank account is now associated with LE entity rather than Operating Unit
OU C
LE
OU A OU B
Single bank account serves multiple Operating Units Any and all Operating Units associated with a ledger can be permitted to use the bank account
Inventory
Receivables
Projects
Work in Process
Purchasing
Payables
Assets
Plus
Centralized Credit Card Model Credit Card Encryption Supplier & Customer Banks in TCA
New Payments Module New Bank Model New Bank & Credit Card Features
OU B
OU C
Bank
Payments
Invoices
Banks
Define Owner of Bank Account
Legal Entity
Banks
Grant OU Access to Bank Account
Operating Units
Holland
Legal Entity
Denmark
Legal Entity
Functional Tasks Order Management Dunning, Collections, Billing Receiving & Drop Ship
Belgium
Operating Unit
Holland
Operating Unit
Denmark
Operating Unit
Requisition, Demand & Purchase Or Invoice Receipt, Disbursement Customer Data Management Accounting Setup
Responsibility
- OU field on UI
all transactions setup data specific to OU, like transaction type
Cross OU Reporting
Enhanced Multi-Org Reporting
Ledger/Ledger Set parameter on accounting reports and processes OU parameter on other standard reports and processes
BI Publisher
Enable Business Users to Format and Deliver Documents
Integrated Solution For: Formatting Managing Delivering Your Business Documents Meet Business Requirements Remove Complexity Reduce Maintenance Cost Reduce TCO
Integrate Out-of-the-Box with R9 CRM, ESA, FMS, HCM, and SCM
Invoices
Checks
BI Publisher
Business Users Format and Deliver Documents
Data Sources
Oracle Applications
CRM Projects FMS HCM SCM XML
XML Publisher
Publishing Engine
Output Formats
PDF RTF HTML XML EDI Excel
Destination
Email Printer Fax
Templates
Business User
Bills
Benefits
Formats
22 3 15 10 21 14 92 25
Product
IT Audit Loans Payables Payments Public Sector Receivables Subledger Accounting Tax
Formats
2 6 9 120 6 10 17 23
Manage Globally
Company
Company
Company
Ledger Set Global Set-up Global Ledger Sets worldwide insight manage their subledger data in Operating Units Global Reporting Comply Locally MultiMulti-Org Access Statutory Accounting Control Inventory Receivables Projects Transaction Tax Legal Entity processing Payables Work in Process Purchasing and reporting
Data Management
Leveraging centralized data model
Global Tax Payments
Payables Purchasing
Authorities, etc
Suppliers
Party Information
Cash Management
ERP
CRM
3rd Party
Comply Locally
Legislative Watch Process
A team of domain experts from around the world monitor and analyze legal and regulatory requirements
MONITOR
ANALYZE
IMPLEMENT
Development
Localizations
Comply with Local Rules and Regulations
Argentina Australia Austria Belgium Brazil Bulgaria Canada Chile China Colombia Croatia Czech Republic Denmark Finland France Germany Greece Hong Kong Hungary India Ireland Israel Italy Japan Korea Kuwait Mexico Netherlands New Zealand Norway Peru Poland Portugal Romania Russia Saudi Arabia Singapore Slovakia South Africa Spain Sweden Switzerland Taiwan Turkey UAE Ukraine United Kingdom United States Venezuela
Localizations - EBS 12
Comply with Local Rules and Regulations
Argentina Australia Austria Belgium Brazil Bulgaria Canada Chile China Colombia Croatia Czech Republic Denmark Finland France Germany Greece Hong Kong Hungary India Ireland Israel Italy Japan Korea Kuwait Mexico Netherlands New Zealand Norway Peru Poland Portugal Romania Russia Saudi Arabia Singapore Slovakia South Africa Spain Sweden Switzerland Taiwan Turkey UAE Ukraine United Kingdom United States Venezuela
Continued Investment
E-Business Suite 12.1 Hyperion EPM 11.1.1 JD Edwards E1 9.0 E-Business Suite 12 PeopleSoft Enterprise 9.0 JD Edwards World A9.1 JD Edwards E1 8.12 CRM On Demand 12 Siebel CRM 8.0 CRM On Demand 13 Demantra 7.2 Agile PLM 9.2.2.4 Agile PLM for Process 5.2 CRM On Demand 15 CRM On Demand 14 PeopleSoft Enterprise 9.1 JD Edwards World A9.2 Demantra 7.3 OTM 6.0 Agile PLM 9.3 Agile PLM for Process 6 Siebel CRM 8.1.1 CRM On Demand 16
Fusion V1.x Hyperion EPM 11.x E-Business Suite 12.x Fusion V1 E-Business Suite 12.1.3 Agile PLM 9.3.1 GTM 6.1 OTM 6.1 Hyperion EPM 11.1.2 Siebel CRM 8.2 for Pub Sec CRM On Demand 18 CRM On Demand 17 PeopleSoft Enterprise 9.x JD Edwards World A9.x JD Edwards E1 9.x Demantra 7.x GTM/OTM 6.x Agile PLM 9.x Agile PLM for Process 6.x Siebel CRM 8.x CRM On Demand 19/20
2006
2007
2008
2009
2010
2011+
Recommended Actions
Upgrade, Adopt, Extend
Upgrade
to Latest Oracle Applications Release
E-Business Suite 12.1 JD Edwards E1 9.0 JD Edwards World A9.2 PeopleSoft Enterprise 9.1 VCP 12.1 Demantra 7.3 OTM 6.1 WMS 12.1 Agile PLM 9.3 Agile PLM for Process 6
Adopt
Standards-Based Technology
Oracle SOA Suite and AIA Oracle ADF & WebCenter Oracle Content Management Oracle OBIEE Oracle Identity Mgmt Oracle Enterprise Mgr
Extend
Business Value with Co-existence Opportunities
BI Apps Hyperion EPM GRC Industry Apps Fusion Apps Supply Chain:
- VCP - Demantra - Agile
CRM On Demand
It is not all architecture: +300 Features R12.0 +270 Features R12.1 9 new products in R12.1
Oracle Advanced Planning Command Center Oracle Demand Signal Repository Oracle Manufacturing Operations Center Oracle Service Parts Planning Oracle Site Hub Oracle PIM for Retail Oracle Supplier Ship & Debit Oracle Price Protection Oracle Landed Cost Management
EFFICIENCY
Data security across legal entities, ledgers or balancing segment values Control Accounts
FLEXIBILITY
AUDITABILITY
New in Procure-to-Pay
Integrated Suite Optimizes Working Capital
Document line level entry and approval Non-PO invoice accounting entry by approvers Invoice dispute management Real-time status of purchasing contract T&Cs and
PRODUCTIVITY
broader set of their suppliers Self service entry extended to receipt matched, complex Work Purchase Orders, and non-PO invoices
Streamlined supplier setup and maintenance as
COST SAVINGS
INTEGRATION
New in Credit-to-Cash
Accelerate cash cycle and manage revenue with fiscal discipline
Daily revenue recognition Deferral reason for goods and services COGS and revenue matching Line level cash application
COMPLIANCE
Payments integration More targeted and efficient collections with configurable matrix Credit recommendation enhancements Conversion of delinquent receivables to payment plans
Visibility to carry-forward balances with cycle-based
INDUSTRY SUPPORT
EFFICIENCY
balancing
Configurable and centralized payments engine Full audit trail and control with single point of
payment administration Straight through processing (STP) for payments Real-time visibility into cash inflows and outflows Large library of payment formats and validations
Simplified reconciliation of bank statements to cash
COMPLEXITY
transactions in multiple organizations Support for new bank account balance types in bank statement import Bank account-level reconciliation options and tolerances
FLEXIBILITY
EFFICIENCY
Depreciation Rollback
PERFORMANCE
INDUSTRY SUPPORT
CONUS and OCONUS global per diem rates Per diem and policy schedules
LOWER COSTS
ACCURACY
Self-service cash advance application during entry Bar code generation Streamlined receipts management with receipts
PRODUCTIVITY