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Overview of the New Financial Architecture in Oracle E-Business Suite Release 12 Mary Burns
The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decisions.The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.
Agenda
• What We Set Out To Address• Release Twelve: The Global Release
• Global Architecture • MultiOrg Access Control• Subledger Accounting• Ledgers and Ledger Sets• Ledger Considerations
• Global Business Functions• Legal Entities
• Accounting Set Up Manager• E-Business Tax• Advanced Intercompany• Banking Model
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What we set out to address
National and International Laws & Regulations
Actions by Competitors
Changing Customer Requirements
Industry Standards and Regulations
Tax Codes
Changing Workforce Attitudes
International Reporting Standards
Language and Cultural Differences
11
Doing Business Globally is ComplexTop Drivers of Complexity
22
33
44
55
66
77
88
Direct impact on Finance
Source: PWC, 9th Annual Global CEO Survey
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
Make it Simpler to do your job Control Costs by Managing Complexity
50%
Senior executives say simplification is driving the Finance agenda
Major Focus
Standardizing operating practices and controls
69%
Standardizing policies and business rules
66%
Standardizing and integrating finance systems
59%
Adopting best practices 58%
Optimizing the finance organization and its reporting structure
52%
Reducing reliance on spreadsheets 33%
Source: PWC Management Barometer
Make it Easier to do Your Job
Transactional ActivitiesControl ActivitiesDecision Support, Performance Mgmt
50% Improve processes or rationalize technologies
60% Standardize policies, rules, and processes across the entire enterprise
73% Implement a shared services model *
80% Adopt best practices or simplify processes across the entire enterprise
47%26%
27%
The Agile CFO, IBM Business Consulting Services, 2005
* Deloitte Consulting, 2006
How Finance Spends its Time % Yet To…
ControlledTransactionEntry
ControlledTransactionEntry
Comprehensive and compliant
processing
Comprehensive and compliant
processing
Transparent Audit,
Reconciliation& Drilldown
Transparent Audit,
Reconciliation& Drilldown
Easy ReportingEasy Reporting
AnalyticsAnalytics
Customers: Centralize, Simplify, Standardize
Work Globally, to be more competitive
Think Globally, to make the right decisions
Manage Globally, to lower cost and increase performance
FinancialData for
Management - and
Compliant
FinancialData for
Management - and
Compliant
National ComplianceLocal RegulationNational COALocal Calendar
Corp. ComplianceUS GAAP / IAS-IFRSCorp COACorp Calendar
$
Joint ComplianceUS GAAP / IAS-IFRSCorp COACorp CalendarA$+$
€
Parent ComplianceUS GAAP / IAS-IFRSCorp COACorp Calendar
€+$
+
WORK GLOBALLYTo Be More Competitive
WORK GLOBALLYTo Be More Competitive
THINK GLOBALLYTo Make the Right Decisions
THINK GLOBALLYTo Make the Right Decisions
MANAGE GLOBALLYTo Lower Cost & Increase
Performance
MANAGE GLOBALLYTo Lower Cost & Increase
Performance
How Financials Release 12 Can HelpThe Global Business Release
Financial Control & Reporting
Credit-to-Cash
Procure-to-Pay
Treasury & Tax
Performance Management
Profitability Management
Business Intelligence
Integration
Data Management
Reporting
Governance, Risk & Compliance
Asset Management
Travel & Expense
Global:1. Of, relating to, or involving the entire earth;
worldwide: global peace; global monetary policies, etc.
2. Comprehensive; total: a... global, generalized sense of well-being
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Release Twelve
The Global Business Release:
A New Financial Architecture
Global Financial Architecture
BankBankModModelel
Tax Tax EngineEngine
InterInterCompanyCompany
General Ledger General Ledger Ledger & Ledger Ledger & Ledger Sets Sets
General Ledger General Ledger Ledger & Ledger Ledger & Ledger Sets Sets
Subledger Accounting (SLA) Subledger Accounting (SLA) Subledger Accounting (SLA) Subledger Accounting (SLA) DrDr CrCr
ProjectsProjectsReceivablesReceivablesInventory
Inventory
Work in ProcessWork in Process
PurchasingPurchasing PayablesPayables
Multi-Multi-OrgOrg
AccessAccessControlControl
Multi-Multi-OrgOrg
AccessAccessControlControl
6 Major Initiatives1. Ledger and
Ledger Sets
2. Multi-Org Access Control
3. Subledger Accounting
4. Tax Engine
5. Intercompany
6. Bank Model
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Multi-Org
Access Control
ThinkWork Manage
ResponsibilityResponsibility ResponsibilityResponsibility ResponsibilityResponsibility
Holland
Legal Entity
Denmark
Legal Entity
Belgium
Legal EntityFunctional Tasks Order Management Dunning, Collections,
Billing Requisition, Demand &
Purchase Orders Receiving & Drop Ship Invoice Receipt,
Disbursement Customer Data
Management Accounting Setup
Functional Tasks Order Management Dunning, Collections,
Billing Requisition, Demand &
Purchase Orders Receiving & Drop Ship Invoice Receipt,
Disbursement Customer Data
Management Accounting Setup
Single Responsibility
Belgium
Operating Unit
Holland
Operating Unit
Denmark
Operating Unit
Perform multiple tasks across operating units without changing
responsibilities
MOAC: Multi-Org Access ControlRole based access to Operating Units
Purpose Built Cross OU “Desks”Shared Services
Shared ServiceShared Service Product ReferenceProduct Reference
Order Management Order Management
Dunning, Collections, Billing Receivables
Requisition, Demand & Purchase Orders
Procurement
Receiving & Drop Ship Supply Chain Management
Invoice Receipt, Disbursement Payables
Customer Data Management Trading Community Architecture
Accounting Setup Accounting Setup Manager
Multiple Organization Access ControlSummary of Changes
• Security Profiles for data security• MO: Security Profile• List of operating units for a responsibility• Defined in HR
• OU field on UI• all transactions• setup data specific to OU, like transaction type
• Enhanced Multi-Org Reporting and Processing• Ledger/Ledger Set parameter on accounting reports and processes• OU parameter on other standard reports and processes• For example: submit the Payables Open Interface Import w/OU
param null to import all records across all OUs
Multi-Org Access ControlIn practice
Classify Organization as operating
unit
Select Operating Unit classification
SelectOperating
UnitsIn daily use
Run ReportsAcross
Operating Units
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Subledger Accounting
ThinkWork Manage
ProjectProjectss
ProjectProjectss
ReceivableReceivabless
ReceivableReceivabless
PayablePayabless
PayablePayabless
3rd Party
Systems
3rd Party
Systems
InventoInventoryry
InventoInventoryry
3rd Party
Systems
3rd Party
Systems
Centralized Accounting PoliciesGreater Control, Transparency and Auditability
• Internal control and compliance with multiple accounting policies through user-defined accounting rules
• 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
• Streamline closing process with common posting engine
• Auditable and transparent entries accessible with full drilldown
Centralized Accounting Centralized Accounting Model, Model,
Rules, Engine and RepositoryRules, Engine and Repository
Centralized Accounting Centralized Accounting Model, Model,
Rules, Engine and RepositoryRules, Engine and Repository
DrDr CrCr
General Ledger General Ledger General Ledger General Ledger
Work in Work in ProcessProcessWork in Work in ProcessProcess
PurchasinPurchasingg
PurchasinPurchasingg
Subledger AccountingCentralized Rules, Common Repository: Global Control
Payables InvoicePayables Invoice
French RulesPlan ComptableFrench Calendar
EUR
Ledger
Subledger
Accounting
Subledger
Accounting
Dr Cr
• Faster, Easier Reconciliation
• Corporate Rules = Accounting Standardization
• Local Rules = Improved Local Compliance
• Automate “Apples to Apples” Adjustments
• Improved Audit- ability
• Improved Internal Control
Some Benefits
• 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
What it is
Subledger AccountingTransaction Level Compliance
Event Class: InvoicesEvent: Invoice Approved Ledger: France (EUR)GL Date: 20-Sep-2005 Description: Office supplies Type Account Description Debit Credit
Asset purchase 01.9100010.100 Paris: furniture 10,000Misc expense 01.9100020.100 Paris: supplies 400Misc expense 01.9100020.200 Nantes: supplies 100Misc expense 01.9100020.300 Nice: supplies 300VAT 01.3100060.000 VAT@17% 1,836Accounts Payable 01.7000010.000 ABC Supplies 12,636
12,636 12,636
• 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• Reconciliation
Platform• “In accordance
with theUnderlyingRecords”
Opening Balance Debit Credit
Closing Balance
SUBLEDGER ACCOUNTING
Receivables
Customer One 250,000 150,000 400,000 - Customer Two 350,000 250,000 450,000 150,000 Customer Three 100,000 1,500,000 1,400,000 200,000 Customer Four 100,000 800,000 750,000 150,000 Customer Five 200,000 300,000 500,000 - Total 1,000,000 3,000,000 3,500,000 500,000
Payables
Vendor I (250,000) 1,000,000 900,000 (150,000) Vendor I I (100,000) 75,000 50,000 (75,000) Vendor I I I (150,000) 725,000 775,000 (200,000) Vendor IX (250,000) 1,000,000 975,000 (225,000) Total (750,000) 2,800,000 2,700,000 (650,000)
Opening Balance Debit Credit
Closing Balance
GENERAL LEDGERCash 100 3,500,000 2,750,000 750,100 Receivables 1,000,000 3,000,000 3,500,000 500,000
Inventory 500,000 1,200,000 1,500,000 200,000 Assets 100,000 100,000 Prepayments 1,000 1,000 Payables (750,000) 2,800,000 2,700,000 (650,000) Accruals (250,000) 50,000 (300,000) Shares (100,000) (100,000) Previous Results (501,100) (501,100) Balance Sheet - 10,500,000 10,500,000 -
Sales 3,000,000 (3,000,000) COGS 1,500,000 1,500,000 R&D 300,000 300,000 S&M 300,000 300,000 G&A-Fin 300,000 300,000 G&A-IT 150,000 150,000 G&A-HR 150,000 150,000 Period Income 300,000 300,000 Income Statement - 24,000,000 24,000,000 -
Ticked & Tied
General Ledger
SLA Detail
SLA Controls that GL Balances and SLA Balances tie,and that both tie to the document
(invoice, payment, etc.)sources
US GAAPUS GAAPUS COAUS COAUS US CalendarCalendar
EUREUR
Ledger BLedger B
French RulesFrench RulesPlan Plan ComptableComptableFrench French CalendarCalendar
EUREUR
Ledger ALedger A
Multiple Accounting RepresentationsGlobal Compliance – Statutory and Stock Market
SubledgeSubledger r
AccountiAccountingng
SubledgeSubledger r
AccountiAccountingng
Single subledger
transactioncan create multiple
accounting representationsand in multiple
currencies
Single subledger
transactioncan create multiple
accounting representationsand in multiple
currencies
DrDr CrCr
Payables InvoicePayables InvoicePayables InvoicePayables Invoice
Chose to use an alternative
Ledger -or just an
AdjustmentLedger or segment
Chose to use an alternative
Ledger -or just an
AdjustmentLedger or segment
or
Multiple LedgersMultiple Ledgers
SLA keeps the Subledgers & GL tied outKeep the auditors happy!
GLJournal Entries
and BalancesTransactions
(& adjustments)
Subledger Applications
Accounting Events
Reconciled:Docs, SLA, GL in synch
AccountingConfigurations
Journal Entry Setup
AccountingProgram
SubledgerJournal Entries
SubledgerBalances
Subledger AccountingService
GeneralLedger
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Ledgers and Ledger Sets
ThinkWork Manage
LedgerOne Repository of Financial Truth
US GAAPUS COAUS Calendar
EUR
Ledger BLedger B
Reporting Currency
Implements the 4 Implements the 4 C’s:C’s:
AAcccounting counting MethodMethodCChart of hart of AccountsAccountsCCalendaralendarCCurrencyurrency
Implements the 4 Implements the 4 C’s:C’s:
AAcccounting counting MethodMethodCChart of hart of AccountsAccountsCCalendaralendarCCurrencyurrency
The balance on Creditors (COA) is 4.2M Eur (Currency)
on March 31, 2006 (Calendar) according to IAS/IFRS definitions (Accounting Method)
Ledger Sets Global Information At A Glance
US GAAPUS COAUS Calendar
EUR
Ledger BLedger B
French RulesPlan ComptableFrench Calendar
EUR
Ledger ALedger A
Reporting Currency
Ledger Sets Global Information At A Glance
Ledger Ledger SetSet
Ledger Ledger SetSet
Key benefits to many Ledgers in one set
•Decision-driving business information always available
•Simpler processing and General Ledger management
•Data and definitions that can be shared and secured
US GAAPUS COAUS Calendar
USD
US GAAPUS COAUS Calendar
USD
Ledger CLedger CLedger CLedger C
US GAAPUS COAUS Calendar
EUR
Ledger BLedger B
French RulesPlan ComptableFrench Calendar
EUR
Ledger ALedger A
Share:Share:CChart of hart of AccountsAccounts
CCalendaralendar
Share:Share:CChart of hart of AccountsAccounts
CCalendaralendar
Ledger DLedger DLedger DLedger D
Reporting Currency
US GAAPUS COAUS Calendar
AUD
Currency in Release 12
• 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]
Data Access, Definition Access
• Data Access Sets • Grant and tailor access to Ledgers and Balancing Segment
Values (i.e. Companies, Stores, Branches, etc.)
Accountant
Privileges
France LedgerFrance Ledger
Canada LedgerCanada Ledger
US LedgerUS Ledger
GL ManagerView Write
• Definition Access Sets – separate from data security• Share, restrict definitions; privileges to view, modify, etc.
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Ledger Considerations
Ledger Sets – Work them your way
CorporateLedger Set
adjustments eliminations
UK Ledger Set
US Ledger Set
Legal LedgerUK1
Legal LedgerUK2
Adj LedgerCorporate
Adjustment Ledger UK
Adjustment Ledger US
Legal LedgerUS1
Legal LedgerUS3
Legal Ledger
US2
ManagementLedger SetManagementLedger Set
• 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
• 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
• 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
When to use a Secondary Ledger, an Adjusting Segment or an Adjusting Ledger?
Adjusting Adjusting SegmentSegment
AdjustingAdjustingLedgerLedger
SecondarySecondaryLedgerLedger
Corp. wants GL balances per Parent GAAP
Corp. wants “Just the adjustments, thank you”
Corp. wants a complete Parent GAAP & Currency edition of the Sub’s books
Subsidiary books are pretty similar to parents
Mapping gets us most of the way to Parent
Subsidiary books are quite alien to parents
No inventoryInventory is the big
differenceInventory is one of the big
differences
National chart of accounts is clearly related to IAS IFRS or GAAP balances
Manageable series of reclassifications
National chart of accounts is radically different from
corporate
National Controllership- Corp GAAP known
Regional Controllership- Corp GAAP administered
Parent ControllershipMexico plant, US parent
Balances are enough(Full drill down available)
See they’ve been properly adjusted to our rules
Every petty cash slip
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Global Business Functions
ThinkWork Manage
Legal Entity: Your Registered Companies
Legal AuthoritiesCountries, States, Local,
Agencies, Taxation,Registrars, Regulators...
Legal EntitiesRegistered Companies,Funds, Partnerships…
Inc. LLC. Ltd. SA. GmBH. Etc. “exist in the outside world”
Management OrgsDivisions, LOBS, Plants, Cost Centers, Whatever =“Decision Making Tags”
Regulates
Managed & analyzed by
PublicCompany
(ultimate parent)
PublicCompany
SubsidiaryCompany
(regional parent)
SubsidiaryCompany
(business parent)
SubsidiaryCompany
SubsidiaryCompany
SubsidiaryCompany
SubsidiaryCompany
SubsidiaryCompany
• Parent companies (LEs) “own or control” subsidiaries (LEs)
• No outside ring - must pick an LE
• LEs create commercial transactions
Complies
LEs: Why and What?
• LEs pay the taxes - need tax registrations
• Trade between LEsneeds intercompany
• LEs own the moneyand bank accounts
• LEs file the accounts, take care of accounting
• LEs comply with whatever needscompliance: “legal” in LE
Why We Care
• Addresses, Officers, etc.
• Enabled First Party stamp
• Added Establishments:map Registrations to Authorities
• GRE/LE not touched
• Authorities as TCA parties
• LE Configurator
What we’ve done
Setup and maintain: Legal Entities, Establishments, Jurisdictions, Legal Authorities, Legal Addresses
Tabulate your Registered Companies and other forms of LE
Where LE fits in…
Transaction Taxes -
Complies &Files, Pays
Actual RegisteredCompanies, etc.
Et Cetera, 11iMaintains its SubledgerDocuments in many OUsDefault LegalContext (DLC)
Maintains its SubledgerDocuments in many OUsDefault LegalContext (DLC)
Accounts for itself
in a Ledger or BSVs
Accounts for itself
in a Ledger or BSVs
LegalEntity
Ledger
BusinessGroup
GRE/LE
OperatingUnits
Registrationswith Authorities
Files Files
FilesFiles
Establishments
Registrationswith Authorities
Legal Entity:Vehicle for compliance
Legal Entity:Vehicle for compliance
ExistsLocallyExistsLocally
Transaction Taxes -
Complies &Files, Pays
Actual RegisteredCompanies, etc.
Et Cetera, 11iMaintains its SubledgerDocuments in many OUsDefault LegalContext (DLC)
Maintains its SubledgerDocuments in many OUsDefault LegalContext (DLC)
Accounts for itself
in a Ledger or BSVs
Accounts for itself
in a Ledger or BSVs
LegalEntity
Ledger
BusinessGroup
GRE/LE
OperatingUnits
Registrationswith Authorities
Files Files
FilesFiles
Establishments
Registrationswith Authorities
ExistsLocallyExistsLocally
Legal Entity:Vehicle for compliance
Legal Entity:Vehicle for compliance
Get the LE RightCompliance Falls Into Place
Let’s put LEs to work• Isolate legal compliance from management needs• Track your registered companies• Make your compliance flow more easily
Accounting Setup ManagerAssign books, bookkeeping rules and currency management to your registered companies
EBusiness TaxHave your registered companies calculate, file, and pay the transaction taxes they owe
IntercompanyDo business between and across your registered companies with full legal documentation
Bank ModelHave your registered companies use their money to pay their bills, et cetera
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Accounting Setup Manager (ASM)
ThinkWork Manage
Define Multiple Ledgers for Rules & Currencies
Define Legal Entities& Associated Rules
One Place to manageYour Global Accounting
Rules, Currencies,Ledgers,
And Ledger Sets Set Accounting Rules
for All EBS Apps
Ensure Complete & Accurate
Setup via Online Checklist
Centralized Set-upAccounting Setup Manager
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E-Business Tax
ThinkWork Manage
Automation
• Tax content for certain countries
• Vertex and Taxware integration for U.S.
• Integrity checks during setup process
Constant Changes in Tax Laws and Regulations
• Date effective setup
• Tax rules flow for change or creating rules
• Tax simulator for setup, rules, and transactions
Business NeedsBusiness Needs SolutionSolution
Local Compliance
• Tax registrations and tax reporting codes
• Tax lines determine applicable taxes
• Configurable tax reporting templates
Centralized Global TaxLess Complex Global Tax Compliance
Information Visibility
• Single set up for all Oracle applications
• Use of E-Business Suite components such as trading partner geography, trading partner classification, legal entity, inventory item categorization, and accounting event.
Tax Transactions
Taxes,Rules
Oracle E-Business TaxProcessing taxes for transactions and reporting
DetermineRegimes
TaxableBasis
CalculateTax
Amount
Tax Status& Rate
ApplicableTaxes
Single Interface for TransactionsSingle Interface for Transactions
Transparent Integration with Tax Partner ServicesTransparent Integration with Tax Partner Services
PartiesParties
PlacesPlaces
ProductsProducts
ProcessesProcesses
Payables
Receivables
Purchasing
Transactions
Sales Orders
…Tax Reports
- PDF, HTML, RTF- Security enabled
Extensible Service Oriented Architecture
Compliance, Assurance Efficiency, Global Visibility
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Advanced Intercompany (AGIS)
ThinkWork Manage
Web UIWeb UI
Open Open Interfaces / Interfaces /
APIAPI
Excel Excel
(Web ADI)(Web ADI)
Advanced GlobalIntercompany
System
Advanced GlobalIntercompany
SystemSubledgerSubledgerInvoices &Invoices &DocumentsDocuments
Generate subledger invoicesGenerate subledger invoices
Control transaction entry with Control transaction entry with Intercompany CalendarIntercompany Calendar
Fully Configurable Approval RulesFully Configurable Approval Rules
Flexible Security ModelFlexible Security Model
Centrally defined Intercompany Centrally defined Intercompany AccountsAccounts
Online Online Reconciliation Reconciliation
ReportingReporting
XML XML Publisher Publisher ReportsReports
Advanced Global Intercompany SystemAddress the Top Barrier to a Fast Close
Subledger Subledger AccountingAccountingSubledger Subledger AccountingAccounting
DrDr CrCr
General General Ledger Ledger ReceivableReceivable
ssReceivableReceivable
ssPayablePayable
ssPayablePayable
ss
InterInterCompanyCompany
AGIS at WorkRebilling a Corporate Cost from an USA HQ
CaliforniaCompany
New YorkCompany
IllinoisCompany
ItalyCompany
FranceCompany
SubledgerSubledgerInvoices &Invoices &DocumentsDocuments
General General Ledger Ledger EntriesEntries
• GL Entries created for US subsidiaries
• AP and AR Invoices created for France and Italy
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Banking Model
ThinkWork Manage
• Bank account is now associated with LE entity rather than Operating Unit
• Single bank account serves multiple Operating Units
• Any and all Operating Units associated with a ledger can be permitted to use the bank accountAssetsAssets
ProjectsProjectsReceivables
Receivables
PayablesPayablesPurchasing
Purchasing
Projects
Projects
Receivables
Receivables
PayablesPayables
InventoryInventory
PlusCentralized Credit Card Model
Credit Card EncryptionSupplier & Customer Banks in
TCA
Centralized BankingShared Services Disbursements
Work in Work in ProcessProcessWork in Work in ProcessProcess
LE
OU A OU B OU C
Bank Model: Example of What You Can DoPay invoices from different OUs with 1 instruction
OU A
OU B
OU CBank
Single Payment
Instruction
Invoices
Payments
Sub Ledger Sub Ledger AccountingAccountingSub Ledger Sub Ledger AccountingAccounting
• New Payments Module• New Bank Model
• New Bank & Credit Card Features
Banks
Legal EntityLegal Entity
Operating UnitsOperating Units
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Sharing Services
ThinkWork Manage
Shared Service Infrastructure
(Serves Informal and Formal)Organizational AccessCross Org Processes
Banking ModelInter Unit Accounting
All Together: Easier To Share ServicesCentral processing, Distributed impact
SSCs(Formal)
SLAs & TaxInter-LE
Formal SSCsAt home or overseasCall Centers, OutsourcingOffshoring, SAS 70, On Demand
Informal Service SharingProcess EfficiencyDecentralized Depts.Centralized Depts..Normal BusinessPractice
Ledgers & Ledger SetsLedgers with
Balancing Segments MOAC across OUs
IntercompanyBank Model
Tax
Ledger and Ledger SetsSubledger Accounting
Intercompany, Tax Engine MOAC across LEs, BankInternal Controls Manager
• Work Globally• Global Order Desk• Global Procurement• Global Billing• Global Dunning
• Think Globally• Global Ledger Sets –
worldwide insight• Global Reporting
• Manage Globally• Global Accounting
Rules• Global Set-up• Global Integration
What the Architecture Gets You
Release 12 Subsidiary LEs….
…account for themselves in Ledgers, and…Ledger Set
Company CompanyCompany
ProjectsProjectsReceivablesReceivablesInventory
Inventory
Work in ProcessWork in Process
PurchasingPurchasing PayablesPayables
Multi-Multi-OrgOrg
AccessAccessControlControl
Multi-Multi-OrgOrg
AccessAccessControlControl
manage their subledger data in Operating Units
Share Services, maintain privacyExploit Cross-OU Processes
Yesterday: An LE Group in 1 SoB with 1 OU - no partitioning R12: Introduce partitioning
without sacrificing processes
AssetsAssets
ProjectsProjectsReceivables
Receivables
PayablesPayablesPurchasingPurchasing
ProjectsProjectsReceivables
Receivables
PayablesPayables
InventoryInventory
Work inProcessWork inProcess
Ledgers inLedger Sets,
New OUs
MOAC
InventoryInventory
Work inProcessWork inProcess
AssetsAssets
ProjectsProjectsReceivables
Receivables
PayablesPayablesPurchasingPurchasing
ProjectsProjectsReceivables
Receivables
PayablesPayables
InventoryInventory
Work inProcessWork inProcess
MOAC, +300 FeaturesMOAC, +300 Features
SLA,Tax
SLA,Tax
Ledger Sets,Ledgers
Ledger Sets,Ledgers
XML Publisher Reporting
XML Publisher Reporting
Profitability Mgr,EPBProfitability Mgr,EPB
SubledgerSubledger
Release 12: The Global Business Release
Work Globally, to be more competitive
Think Globally, to make the right decisions
Manage Globally, to lower cost and increase performance
DBI, FCHDBI, FCH
Intercompany, Bank, PaymentsIntercompany,
Bank, Payments
General Ledger
General Ledger
TransactionsTransactions
OICMOICM
TCA, LETCA, LE
National ComplianceLocal RegulationNational COALocal Calendar
Corp. ComplianceUS GAAP / IAS-IFRSCorp COACorp Calendar
$
Joint ComplianceUS GAAP / IAS-IFRSCorp COACorp CalendarA$+$
€
Parent ComplianceUS GAAP / IAS-IFRSCorp COACorp Calendar
€+$
+
AQ&Q U E S T I O N SQ U E S T I O N S