Upgrade to R12 Now A Financials Overview

Presented by: Lee Briggs, BizTech

Upgrade to R12 Now OAUG eLearning Sessions

Presentation
Upgrade to R12 Now A Financials Overview Upgrade to R12 Now A Deep Dive into General Ledger Upgrade to R12 Now The International and MultiNational Arena Upgrade to R12 Now Improvements in Cost Management Upgrade to R12 Now Manufacturing and Order Processing Upgrade to R12 Now Realizing Enterprise Value with Projects R12 Upgrade to R12 Now Round Table Discussion

Date
Jul 19, 2012

Presenter
Lee Briggs

Company

Jul 26, 2012

Mohan Iyer Marsha Edgell/Thomas Simkiss Douglas Volz

Aug 2, 2012

Aug 9, 2012

Aug 15, 2012

Bob Bullman

Aug 23, 2012

Mike Lennon

Aug 30, 2012

Thomas Simkiss

www.BizTech.com
Professional Services Firm Professional Services firm focused on Oracle applications and technology Oracle Platinum Partner Highest Level of certification Specialized Pillar Partner in BI/EPM, EBS, CRM, and Core Technology Over 400 successful Oracle implementations over the past 15 years NY, PA, NJ, VA offices with Regional, Global, and International clients 100+ Consulting Resources Centers of Excellence across key solutions and industries Solutions: Oracle Applications, Technology, BI/EPM, and Managed Services Industries: Financial, Professional, Business Services; Communications and Media; Manufacturing; Distribution; Public Sector, Government; Healthcare and Life Sciences BizTech Software Solutions : BizTech Data Integrators, BizTech Insight Accelerators, BizTech Reporting Foundation Oracle License Reseller

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

Contact Information
Thomas Simkiss, JD, CPA Tsimkiss@BizTech.com Lee Briggs Lbriggs@BizTech.com Bob Bullman Bbullman@BizTech.com Mike Lennon Mlennon@BizTech.com Mohan Iyer mohan@fscpsolutions.com Hans Kolbe hanskolbe@celantrasystems.com Douglas Volz doug@volzconsulting.com

Plan| The Right Strategy

Building a Business Case To Upgrade

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?

Why Upgrade to R12

Straight 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 bank for 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.

Plan| The Right Strategy

Why Upgrade to R12?

Continued Release and Innovation

Released
EBS R12
EBS R12.1 EBS 12.1.2 EBS 12.1.3

Major Release Minor Release

EBS 11i10

2004

2007

2009

2010

2011

Functional Innovation

Financials, Technology

Procurement, HCM, Service, SCM, Projects, Financials, Technology, MDM

10

E-Business Suite Release 12.1

Focus on Opportunities to Achieve Rapid Return

Invest in Ways to Standardize and Simplify with a Global Business Platform

11

Oracle E-Business Suite

Procurement Procurement

Applications Technology

Supply Chain

E-Business Suite 12.1

Financials & Projects Customer & & Customer Master Data Data Master Management Management Human Capital

12

Increase Operational Control and Efficiency

Procurement

Results:
Applications Technology Supply Chain

E-Business Suite 12.1

Financials & Projects Customer & Master Data Management Human Capital

Greater control with increased flexibility

Centralized administration of global shared services

Make better decisions with greater insight

13

Greater Control, Increased Flexibility

WHATS NEW IN 12 Ledgers and Ledger Sets Rules-based Accounting Engine Unified Bank Account Model Centralized Payments
Legal Entity Operating Units

UNIFIED BANK ACCOUNT MODEL

Global Tax Engine

Global Intercompany System 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 Funds Capture and Disbursement

Payments Engine

ONE GLOBAL TAX ENGINE Centrally managed rules Consistent tax services
Tax Determination Process
Regime Applicable Taxes Tax Status, Rate Taxable Basis Tax Calculation

14

Centralized Administration of Global Shared Services

Belgium Belgium
Legal Entity Entity Legal

Holland
Legal Entity

Denmark
Legal Entity

Functional Tasks Holland

Operating Unit

Belgium
Operating Unit

Denmark
Operating Unit

Accounting
Billing, Dunning & Collections Procurement Order Management Payments Data Management

Responsibility Single Responsibility Responsibility Responsibility

15

Make Better Decisions with Greater Insight

WHAT
Prebuilt analytics for Federal Financials Budget execution analysis Spending & Payment analysis

HOW
Track appropriations, apportionments & allotments Track commitments, obligations, and expenditures at different fund levels Visibility and drill down at each fund level: Fund, Programs, Projects, Organization, Object Class

RESULTS
Monitor budget spending Improve cash flow management Minimize interest payments Minimize delinquent debt amounts Visibility to prepare new budgets

16

Plan| R12 Financials

Why Upgrade to R12?

Financials
New Architecture SubLedger Accounting Accounts Payable Payments Accounts Receivable eBusiness Tax Advanced Global Intercompany System Assets Cash Management General Ledger

18

New Architecture
Legal Entity Configurator Multi Organization Access Control

19

SubLedger Accounting
Accounting Rules Transaction Account Builder Standard Reports

20

SubLedger Accounting
Legal Entity: France Primary Ledger US GAAP rules Corp COA Corp Calendar USD Secondary Ledger French Fiscal rules French COA Corp Calendar EUR

Dr

Cr

Centralized Accounting

Same Subledger Transaction can Create Multiple Accounting Representations

21

Accounts Payable
Payments within Accounts Payable is obsolete Representation of Suppliers in the Trading Community Architecture AP / AR Netting Introduction of Invoice Lines Invoice Processing for Contract Financing, Retainage and Progress Terms Enhanced Invoice Approval including Line Level Approval Non PO Invoices entered via iSupplier Portal Collaboration with Suppliers to Resolve Disputes

22

Accounts Payable (contd)

Oracle Disbursement Requests Discount Calculation Enhancements Subcontractor Management for Engineering and Construction Supplier Dispute Processing Third Party Payments Replace Supplier Bank Accounts on Invoices Change Taxes from Inclusive to Exclusive Online New User Interface for Supplier Entry and Maintenance

23

Accounts Payable

24

Payments (Funds Disbursement)

Disbursement Dashboard Electronic Payment Processing Improved Remittance Advice Reporting Migration of Global Features to Central Engine Payment Processing User Interface Enhanced Check Printing Process Consolidation of Payment Features

25

Accounts Receivable
Revenue Management Enhancements Line Level Cash Application Customer Standard User Interface Redesign Funds Capture Enhancement Uptake Refunds Enhancements Credit Card Error Handling Credit Card Chargebacks Deduction Management Balance Forward Billing Late Charges

26

Receivables Line Level Cash Application

27

Receivables Customer Standard User Interface

28

Accounts Receivable (contd)

Receivables Reconciliation Enhancement Additional Bills Receivable Reference Field Collections Workbench Obsolescence Bills of Exchange Obsolescence Trade Accounting Obsolescence Cash Application Work Queue Default Customer Bank Account Information on Unidentified Receipts

29

Payments (Funds Capture)

Funds Capture Dashboard Supports multiple Payment Processing Systems simultaneously Improved Support for Credit Card Security Features Out-of-the-box integration with third party payment systems PINless Debit Card Transaction Support Improved Payer Notification of Settlement Direct Debit Enhancement Improved Batch Settlement Performance

30

Cash Management
Centralized Internal Bank Account Model Bank Account Balances and Interest Calculation Bank Account Transfers Cash Pooling Bank Statement Accounting Bank Account Signing Authorities Cash Positioning Intra-Day Activities

31

Payments Funds Capture Dashboard

32

Cash Management Bank Account Transfers

33

Cash Management (contd)

International Bank Account Number (IBAN) Support Bank Identifier Code (BIC) Support Payment Group based Bank Statement Reconciliation EDIFACT Bank Statement Format Update Load Bank Statement for Current Date Manual Entry in Cash Position

34

General Ledger
Centralized Accounting Setup Data Access Sets Ledger / Ledger Set Architecture Replacement for Disabled Accounts Improvements to Financial Statement Generator
Reporting to Display Content Set Values Reporting to Support Drill-Down for non-contiguous account ranges Streamlined Excel-based Financial Statement Publishing

35

General Ledger

36

eBusiness Tax
Configuration Options and Provider Service Subscriptions Tax Configuration Manager Tax Determination Services Tax Simulator Tax Reporting Centralized Tax Record Repository for Audit and Reporting Guided Configurations
37

Advanced Global Intercompany System

Intercompany Balancing Intercompany Invoicing Intercompany Reconciliation Manual Intercompany Transactions

38

Assets
Enhanced Mass Additions Interface for Legacy Conversions Automatic Preparation of Mass Additions Enhanced functionality for Energy Industry Automatic Depreciation Rollback Enhanced Logging for Asset Transaction and Programs

39

Increase Value from Applications

Procurement

Results:
Applications Technology Supply Chain

Drive greater end user productivity Reduce cost of ownership Increase agility and lower integration costs

E-Business Suite 12.1

Financials & Projects Customer & Master Data Management Human Capital

40

Productive User Interfaces for Diverse Users

WHAT Improved application usability through enhancements to native user interface HOW Type-ahead search Dynamic Menus & Popups Embedded OBIEE Analytics Desktop Widgets REST Services

RESULTS

Enhanced user productivity and more appealing user experience Applicable to all existing and new EBS customers

41

Productive User Interfaces for Diverse Users

BEFORE -

3 steps to complete task

42

Productive User Interfaces for Diverse Users

AFTER -

List of Value components most frequently used by all users now provides similar experience to Google suggest Inline list appears after user types in 1 or more characters and pauses Reduces number of steps and time taken to complete tasks

Quick inline access to desired result

Single step to complete task

43

Productive User Interfaces for Diverse Users

BEFORE -

44

Productive User Interfaces for Diverse Users

AFTER -

New and Improved Menu Main menu with new navigator reduces number of clicks with the tree hierarchy

Allows rapid cross-application navigation

Avoids navigation to Home Page eliminating at least 2 server-side requests Moved Favorites to the global menu to improve manage favorites better

45

Productive User Interfaces for Diverse Users

BEFORE -

Add and Manage Favorites - 3 steps to complete task

46

Productive User Interfaces for Diverse Users

AFTER -

Favorites

Add and Manage Favorites in a single click

47

AFTER -

12.1.2 and Later Usability & User Experience

Main Menu

Pull Down menu navigation

48

Drive Greater End User Productivity

Oracle Business Intelligence Publisher for Oracle E-Business Suite

49

Reduce Cost of Ownership

Centralized Management
Manage single / multiple Oracle E-Business Suite systems from a single console

Application Management Pack

Proactive Monitoring
Proactively monitor Infrastructure and End User experience through Service Level Management

Automated HOT Cloning

Automatically Clone Oracle E-Business Suite systems through Clone Dashboard in HOT Mode

Customization Management
Automate packaging, deployment, migration of customizations across Oracle E-Business Suite instances

Application Change Management Pack

Patch Automation
UI based impact analysis and deployment of patch across EBS instances from a single console

Functional Setup Management

Manage, transport and document changes in functional setups across Oracle E-Business Suite instances

50

E-Business Suite Support Timelines

July 2012
2007 11.5.10 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Premier

Extended Nov 13
Uplift Fee waived until Nov 11* instead of starting on Nov 10

Sustaining

R12

Premier GA

Extended Jan 12
Jan 15

Sustaining

R12.1

Premier
GA

Extended May 14

Sustaining May 17

11i Premier Support Ended in November 2010. Extended Support follows for 3 addtl yrs to bridge upgrade gap.
* More info: http://www.oracle.com/support/library/extended-support-faq.pdf

51

Oracles Support Policy

Premier Support
Premier Support provides you with maintenance and support of your Oracle Database, Oracle Fusion Middleware, and Oracle Applications for five years from their general availability date.

Stay competitive, with the freedom to upgrade on your timetable. If you take Extended Support advantage of Extended Support, it provides you with an extra three years of support for specific Oracle releases for an additional fee. Type of Support Services Offered under Premier and Extended Support :

Major product and technology releases Technical support Updates, fixes, security alerts, data fixes, and critical patch updates Tax, legal, and regulatory updates Upgrade scripts Certification with most third-party products/versions*

Certification with most Oracle products

*Selected certifications under Extended Support

52

Plan| The Right Approach

Best Practices for Upgrading to R12

Supported Upgrade Paths

Notes: 1) Please see Metalink Note 403339.1 for supported combinations of Apps and RDBMS for R12 upgrade. 2) Release 11.5.10.2 includes systems installed with Rapid Install 11.5.10.2 and those upgraded by using the 11.5.10 CU2 maintenance pack.

Project Approach
Project Approach & Phases 1. Upgrade your Operating System 2. Upgrade your Database to 11g.X 3. Upgrade your eBusiness Suite Environment
No new functionality or modules, other than what is required by ORACLE

4. Implement New Functionality

1) Upgrade OS

2) Upgrade DB

4) Deploy New Functions 3) Upgrade EBS

55

Multiple Test Upgrades

Test Upgrade 1
Identify and document all required technical activities; patches,

scripts, etc to create a useable instance Identify and document all pre and post upgrade functional activities; data preparation, set ups for existing modules and set ups for new modules All information is collected and consolidated into the upgrade "playbook which is used for subsequent upgrade iterations

Multiple Test Upgrades

Additional Test Upgrades
Used to continue refining the technical and functional upgrade activities Includes resolutions to SRs, scripts created, patches identified, etc Used to create instances for functional testing, development activities

and integration testing Timing of all tasks to assist with planning the production upgrade timeline and required blackout period

Testing & Training

Test Script Creation & Testing
Use scripts from prior implementation or upgrade activities as

baseline scripts Update scripts for new or updated functionality introduced in R12 Update scripts for business process changes Solicit end user participation to develop and enumerate the script scenarios (Early and Often!) Make sure all customizations are addressed and thoroughly tested

Training
Lead off with navigation training; R12 introduces look and feel

differences across all applications using OA Framework Consider delta training approach; address changes introduced by R12 versus the version being upgraded from Highlight and address business process changes

Best Practices
Review Appropriate Oracle Documentation
Oracle Support Doc id: 394692.1 Upgrade Process Tools Required Number and Types of Tasks Involved How your System and Products will Look in Release 12

Best Practices Pre-Upgrade

Pre-Upgrade Best Practices
Oracle Support Doc id: 394692.1 Use The Upgrade Manual Script (TUMS) to eliminate the tasks that

are not relevant for your system Use Shared file system for Multi-node Use Distributed AD for Multi-node Estimate table space sizes for test upgrade using Doc id: 399362.1 Performance of upgrade scripts can be significantly improved by modifying specific parameters

Best Practices Pre-Upgrade

Perform Following Key Tasks which Substantially Reduce the Downtime During Upgrade
Functional tasks listed in Reducing downtime section (Appendix E) in

R12 Upgrade manual Upgrade by Request section (Appendix G) in R12 upgrade manual

Perform Following Tasks in Advance to Reduce Extended Downtime

Convert to Multi Org Convert to OATM (Oracle Applications Tablespace Model) Upgrade database to 11g.X

Best Practices Pre-Upgrade

Run Gather Schema Statistics Before Upgrade
Use Gather Auto option if your Database is already at 10g

Record Timing for Each Step During Test Upgrade

Make Sure you have Good Backup before Database Upgrade and Also Before R12 Upgrade

Best Practices Pre-Upgrade

Add PL/SQL No Compile Option in R12 Upgrade Driver
This will save time during the upgrade Saved 3 to 4 hours of upgrade downtime during internal test upgrades Add extension plsql_no compile yes line in upgrade driver file to enable PL/SQL no compile option
extension patch_type software base extension plsql_no compile yes extension patchinfo maintpack 12.0.0

Upgrade Challenges
Application Changes May Result in Business Process Changes Some Changes are Significant Migration of Existing Customizations
Changes in technology may not allow upgrade in a straightforward

manner and the migration path may not exist causing a re-write Changes to the Oracle Application architecture and table structure changes Current staff may not be versed in the new technologies Training or Practices augmentation may be required

Upgrade Challenges
3rd Party-Supplied Programs or Extensions may not be Compatible or Certified with R12

Technology Changes
XML (BI) Publisher Migration away from Oracle Forms to OA Framework

User Re-training

Summary
Upgrading from Release 11i to 12.1 offers business value in all product areas

Customers are successful on Release 12 and 12.1

While you plan your upgrade, consider opportunities to get more return from your existing EBS 11i investments Develop an upgrade plan that keeps you comfortably within product support windows

66

Any Questions?
Lee Briggs Practice Director, Financials Management LBriggs@BizTech.com Twitter: @BTLeeBriggs