René Römbell gnr Consulting GmbH

Hans Kolbe Celantra Systems

Rene Roembell

� Rene Roembell is based in Frankfurt Germany. He has been working with Oracle based ERP Systems since 1989 and Oracle EBS since 1996. He was Oracle Principal consultant until 2001.

� His extensive knowledge on Oracle applications and tools is combined with a deep understanding of functional, technical and project management challenges.

� Over the last few years he has specialized on rapid pan-European implementations for global companies.

� rene@roembell.org

Hans Kolbe

� Hans Kolbe has managed and advised global software implementation projects for over 15 years. His extensive knowledge on Oracle applications is combined with a formal background as a German attorney, trained in international and comparative law.

� Chair of Multi-National SIG Group

� Specialist in Intercompany and multi-org configurations, international compliance and transaction tax

� hanskolbe@celantrasystems.com

� www.celantrasystems.com

� 415-730-1131

3

11/20/2017 4

Standard (“Silo”) ERP Multi-Org Model All Subsidiaries are Parallel Entities

Ledger Consolidation

CentralL1410

Ger1462

Fra Swe Den Spa

Inventory

Fra1475

U.K1473

Ita1463

Swe1444

Den1432

Hol1461

Bel1442

Swi1465

Aus1415

Spa1467

PorNorEE Mea Fin

Pol14xx

Per Operating Unit : One Validation Org for VAT rates , One Planning Org , Global Master.

Shared Operating Unit Model

General Concept

5

Silo Model

1 Ledger-1 Legal Entity-1 Operating Unit

SecondaryLedger Primary

Ledger

Secondary Ledger Primary

Ledger

Secondary Ledger Primary

Ledger

Secondary Ledger Primary

Ledger

SecondaryLedger Primary

Ledger

LE

OU

LE

OU

LE

OU

LE

OU

LE

OU

SecondaryLedger

SecondaryLedger

Cross Legal Entity Operating Unit (CLEOU)

1 Ledger-N Legal Entities-1 Operating Units

1-N-1

Secondary Ledger Primary

Ledger

LE LE LE

OU

LE LE

Opportunities through CLEOU Design

� Simplified Design – Single Ledger, Single OU

� Align Operating Unit with operating structure

� Reduce Month-End Activities and Reconciliations

� Dramatically reduce time to integrate acquisitions and roll-out new modules and functionality

� Ensure global processes by reducing number of configurations and synchronizations challenges

� Improve global data quality - reduce duplication

Multi-LE OU – Pros & Cons Pros

� Adding a legal entity into Corp Oracle (e.g. from acquisition) could be radically faster than current approach (creating a separate OU)

� Single Operating Unit with multiple legal entities should improve operational efficiency

� Fewer OU’s to close at month-end will help to speed the close, assuming no additional tasks are required

� Multi-LE support aligns with Oracle’s stated direction for Operating Unit concept

Cons

Impact on business operations

resulting from configuration

differences is not known

Impact on existing support

functions (IT & FSG) not known

If a legal entity grows too large,

it could entail configuring a

separate OU at a later date

Questions to the CLEOU proposal

� Does this design fit my operating structure? � Shared and local service services� Security, defaults, and validations

� How can I connect each transaction to a single LE? � Payments, Invoices � Reconciliation

� How can I fullfill my local statutory and tax reporting requirement? � Sequencing, tax, accounting � Local COA and GAAP rules

� What about Intercompany Transactions?� How does this impact corporate consolidations? � How do you deal with multiple functional currencies?

Answers from the CLEOU solution

� Does this design fit my operating structure? � Align Multi-Org to Op. Unit / multiple Options

� Transaction Ownership? � LE column in Finance Modules � Nominate Data Element in all others (Company Segment)

� Local statutory and tax reporting? � Stat Reporting + GL sequencing in secondary ledger� VAT through EBus Tax and � Trx Sequencing thru sub-ledger configuration

� What about intercompany Transactions? � Identify source, LE owner and LE partner

� How does this impact corporate consolidations?� Generally no impact. Secondary ledger available, if needed.

� Multiple functional currencies? � Reporting ledger can be used.

Looking at Key R12 functionality used for CLEO

Our discovery process

Using the R12 LE functionality� In conjunction with accounting setup

� to support your corporate and local reporting

� to support your GL ledger sequencing (gapless where needed)

� In conjunction with EB-Tax

� to fulfill the regional transaction tax (VAT etc.) requirements

� In conjunction with subledger document sequencing

� to fulfill country specific transaction sequencing requirements

� To default Payables and Receivables transaction ownership

� To identify intercompany transactions and implications

� To support your payments and receipts with correct legal ownership assignment

Operating Unit and CLEOU

• An Operating Unit is not directly connected to a Legal

• Default Legal Context is used to assign one of the Legal

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Ledger and Cleo

� BSV (Balancing Segment Value) representing a Legal Entity

11/20/2017 14

Receivables and Cleo

� Legal Entity column available for Transaction

� Default via Transaction Type

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Legal Entity Assignments and Defaulting

ReceivablesInvoice

Legal Entity

Trx Type

Order Type

Sales OrderService

Contract

Ledger

BSV

VendorSite

PayablesInvoice

PurchaseOrder

GL Journal

defaults

Customer Taxpayer ID

defaults

assigned

assigned

assigned

assigned

assigned

assigned assigned

Liability BSV

Project Invoice*

assigned

*enable decentralized Invoice Processing ot AR Transaction Type extension

EBTaxBank

account

Payment

Receipt

Bank Account Owner

Legal Entity

ConfigurationOwner

InventoryOrg

rene@roembell.org

info@celantrasystems.com