R12 Finance Student Guide

Enterprise Resource Planning (ERP)

ERP General Concepts

ERP – General Concepts What is ERP? The Current Scenario Why ERP? Evolution Expectations

ERP A collection of software systems that help to manage business processes for an entire organization Designed to integrate all information processing support for an entire organization

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Organization

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A group of people engaged in purposeful activity over extended time A tool used to coordinate in order to obtain Value or organizational goals

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Business Process

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Work activities across time and place, with a beginning, an end, and clearly identified inputs and outputs Has sequence, purpose, interaction

6

ERP - Definition “Software solution that addresses the Enterprise needs, taking a process view of the overall organization to meet the goals, by tightly integrating all functions and under a common software platform”

In simpler words, an ERP is a massive software architecture that supports the streaming and distribution of geographically scattered enterprise wide information across all the functional units of a business house. It provides the business management executives with a comprehensive overview of the complete business execution which in turn influences their decisions in a productive way.

Evolution of ERP 1960’s - Systems Just for Inventory Control 1970’s MRP – Material Requirement Planning & (Inventory with material planning procurement) 1980’s - MRP II – Manufacturing Resources Planning (Extended MRP to shop floor & distribution Mgmt.) Mid 1990’s - E RP – Enterprise Resource Planning (Covering all the activities of an Enterprise) 2000 onwards – E RP II – Collaborative Commerce (Extending ERP to external business entities)

ERP Model The Before and After of ERP: “Before” -- each function is supported by multiple applications and interfaces “After” -- each function is supported by a single application module within the ERP system itself, and all applications leverage a common, authoritative data source.

The Current Scenario Islands of Information Difficult to get timely & accurate information Heterogeneous Hardware & Software platforms & practices Poor connectivity between different organizational locations Sticking with obsolete technology Resist to change Lack of proven man-power to develop integrated software

Information Islands

B

Why ERP is required? For Management – to know what is happening in the company One solution for better Management For cycle time reduction To achieve cost control & low working capital To apply latest technologies To satisfy the customers with high expectations To be Competitive & for survival

Basic ERP Applications ERP covers a broad range of activities that are supported by a multi-module software application. The different modules allow the business to manage the many parts of the business. Some examples of modules: Planning Sales Inventory Marketing Purchasing Distribution Maintenance Accounting Manufacturing Human Resource

Finance

ERP – Expectations Integrating all the functions Integrating the systems running in all the locations Transparency of information using a single data source across the organization Software must be responsive Modular Flexible Easy to add functionalities Provide growth path High ROI

The Ideal ERP Systems....... Financials Accounts Payable, Accounts Receivable, Fixed Assets, General Ledger, Cash Management

The Ideal ERP Systems....... Human Resource Recruitment, Benefits, Compensations, Payroll, time and labour , People management, Work Structure

The Ideal ERP Systems....... Supply Chain Management Inventory management, Supply chain planning, Supplier scheduling, sales order execution, Procurement planning, Transportation and distribution

The Ideal ERP Systems....... Customer Relationship Management

Sales, Marketing, Service, Commissions, Customer contract and after sales support Relationship Management

The Ideal ERP Systems....... Manufacturing Engineering, Resource & Capacity planning, Material planning, Workflow Management, Shop floor management, Quality control, Bills of material, Manufacturing process, etc.

ERP – Options

OPTION 1 – MAKE [Using Internal resources] Developing a custom-built ERP package, specific to the requirements of the organization, with the help of the in-house IT department

ERP – Options

OPTION 2 – BUY Going for Tailor-made ERP packages available in the market like SAP, Oracle applications, Baan, PeopleSoft etc.`

ERP – Options

OPTION 3 – MAKE [using External resources] Developing a custom-built ERP package, specific to the requirements of the organization, with the help of a software solution provider

Typical ERP Features (1) Multi-Currency (2) Multi-Lingual (3) Multi-Mode (4) EDI / Electronic Commerce (5) Web Enabled / Internet Communications (6) Imaging & Multi Media

Typical architectural components

Business Centre Aplication s

CRM Foundati on

Marketing Sales eCommerce OSS

HR

Installed Base

Resources

Territories

Assignment Engine

Tasks

Notes

Calendar

1-to-1 Fulfilment

TCA

Escalations

Interaction HistoryUniversal Work Q

Choosing an ERP Provider

Oracle PeopleSoft Siebel SAP Tally Baan Ramco MicroSoft Dynamix SixthSence MFG Pro JD Edwards

Great Plains Ross Systems SCT Cincom Computer Associates GEAC Sage Navison Scala Deltek Fourthshift

ERP Product selection Criteria Goal: To select the Functionality Most Suitable Software 5 Strategic Package Solution` Requirement Levels Technology

Vendor

Support

Costs

Advantages of ERP Systems There are many advantages of implementing an ERP system. A few of them are listed below: #A perfectly integrated system chaining all the functional areas together. #The capability to streamline different organizational processes and workflows #The ability to effortlessly communicate information across various departments\ #Improved efficiency, performance and productivity levels #Enhanced tracking and forecasting #Improved customer service and satisfaction

Disadvantages of ERP Systems

While advantages usually outweigh disadvantages for most organizations implementing an ERP system, here are some of the most common obstacles experienced: #The scope of customization is limited in several circumstances #The present business processes have to be rethought to make them synchronize with the ERP #ERP systems can be extremely expensive to implement #There could be lack of continuous technical support #ERP systems may be too rigid for specific organizations that are either new or want to move in a new direction in the near future

Execution phases (1) ERP product selection (2) Preparations (3) ERP vendor (4) Implementation (5) Post-Implementation

ERP implementation Lifecycle

Business Process Reengineering Just automating the existing business practices will not help ERP to achieve the anticipated results Business Process Re-engineering [BPR] brings out the deficiencies of the existing setup BPR and ERP combination will give way to implement new systems and the long pending improvements in the existing systems BPR may be time consuming but the scope can be restricted & controlled by the Management

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The BPR approach to an ERP implementation implies two separate, but closely linked implementations involved on an ERP site i.e. a technical implementation & a business process implementation. The BPR approach emphasis the human element of necessary changes within the organization, which is generally more Time consuming & has received its share of criticism for creating bloated budgets & extended projects. The ERP market shifts to a mid-market focus & as all implementation are becoming more cost sensitive; the BPR approach has come under some real scrutiny.

CONFIGURATION •

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IMPORTANCE OF CONFIGURATION This is the main functional area of the ERP implementation. Business processes have to be understood & mapped in such a way that the arrived solution matches with the overall goals of the company. THE PROTOTYPE

A prototype- a simulation of the actual business processes of the company- will be used. The prototype allows for thorough testing of the ‘to be’ model in a controlled environment.

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As the ERP consultants configure & test the prototype they attempt to solve any logistical problems inherited in the BPR before the actual go-live implementation. STRENGTHS & WEAKNESSES –

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Configuring a company’s system reveals not only the strengths of a company’s business process but also& perhaps more importantlyits weakness. It is vital to the health of the company & to the success of the ERP implementation that those configuring the system are able to explain what won’t fit into the package & where the gaps in functionality occur.

Some important points to remember while evaluating software includes. #Flexibility & Scalability. #Complexity #User Friendliness #Technology #Quick Implementation #Amt of Customization Required #Ability to support multi site planning & control. #Local support infrastructure . #Total cost i.e license , training, customization etc.

Conclusion…

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In current business era, integrated software's Like ERP suffices the needs of all type of Industry. There must be a vision for choosing appropriate ERP. Consider all Advantages and Disadvantages of ERP you choose.

Objectives After completing this lesson, you should be able to do the following: ◦ Define the purpose of this course ◦ Identify the topics covered in this course ◦ Locate additional reference material for the topics covered in this course

R12Oracle eBusiness Suite essentials

Course Purpose ◦ The R12 Oracle E-Business Suite Essentials course provides a functional foundation for any EBusiness Suite Fundamentals course. ◦ In the course, there will be demonstrations and hands-on practice, which reinforce the fundamental concepts.

What’s in the Course? ◦ Navigating in the new R12 user interface ◦ E-Business Suite (EBS) product footprint and architecture ◦ Overview of shared entities and integration ◦ Fundamentals of Multiple Organizations (Multi-Org) ◦ Fundamentals of Flexfields ◦ Fundamentals of System Administration

E-Business Suite: Documentation ◦ Oracle Applications Concepts ◦ Major E-Business Suite product families ◦ Oracle Applications Multiple Organizations Implementation Guide ◦ Oracle Applications Flexfields Guide ◦ Oracle Applications System Administrator’s Documentation Set ◦ Oracle Applications User’s Guide ◦ Oracle Self-Service Web Applications Implementation Manual

Other Resources ◦ ◦ ◦ ◦

MetaLink Appsworld Appsnet Oracle Technology Network (OTN)

Oracle University Courses Instructor-Led Training (ILT) Live Web Class (LWC) Recorded Web Class (RWC) e-Learning (Oracle University Knowledge Centre [OUKC]) ◦ Self-Service CD-ROM (SSCD)

◦ ◦ ◦ ◦

In class

LWC

RWC

SSC D

QUIZ

(1)

What courses are available to learn Oracle ERP application?

QUIZ

Summary After completing this lesson, you should be able to: ◦ Understand the target audience and purpose of this course ◦ Identify the roadmap for this course and list the topics that will be covered in it ◦ Gather inputs from where you can access additional reference material for this course

Navigating in R12 Oracle Applications

Chapter 2

Objectives After completing this lesson, you should be able to do the following : ◦ Log in to Oracle Applications ◦ Navigate from Personal Home Page to Applications ◦ Choose a responsibility ◦ Create Favorites and set Preferences ◦ Use Forms and Menus ◦ Enter data using Forms ◦ Search for data using Forms ◦ Access online Help ◦ Run and monitor Reports and Programs ◦ Log out of Oracle Applications

Logging In to Oracle Applications

Navigating from Personal Home Page to Applications Forms-based applicationsSelf-Service Applications

Creating Favorites and Setting Preferences Worklist

Navigator

Preferences

Favorites

Choosing a Responsibility

Click a link to the responsibility

Click a link to the function.

Responsibility Relationships: Many to One

Accounts Payable

Payroll

Responsibility Relationships Responsibility menu One to many

Responsibility Responsibility 1 Responsibility 2 3 Many to many

User 1

User 2

User 3

User 4

Navigator Menu bar

Toolbar Region tabs

Functions

Expanding or Collapsing the Navigation List ◦ Select one of the following methods to expand an item to its next sublevel window:  Double-click the item.  Select the item and click Open.  Select the item and click Expand.

◦ To collapse an expanded item, select the item and click Collapse.

Expanding or Collapsing Several Items To expand or collapse several items at once, click one of the following buttons:

◦ Expand All Children expands all the sublevels of the currently selected item. ◦ Expand All expands all the sublevels of all expandable items in the navigation list. ◦ Collapse All collapses all currently expanded items in the navigation list.

Logging Out of Oracle Applications ◦ From the File menu, select Exit Oracle Applications. ◦ Use this method to ensure that your username is cleared from system access.

Using Forms and Menus

Navigating to a Form

Click for a Function.

Form Terminology Tool tip Menu bar

Help

Title bar

LOV icon

Window

Record or row

Check box Block

Pop-up list

Scrolling region

Form Terminology

Region

Region tab

Field

Button

Field Colors Field Color

Description

White

It allows data entry

Blue with Black Text

It Indicates drilldown capability

Yellow

It requires data entry

White with Green Text

It Display only

Blue

It indicates fields to use in “Query-Enter Mode”

Creating and Saving a New Record

New

(M) File > New

Save

(M) File > Save

Editing and Deleting a Record

Edit

(M) Edit > Record

Delete

(M) Edit > Delete

Using a List of Values

The list of valid values is displayed.

Click LOV ico in the field.

LOV: Shortcuts ◦ ◦ ◦ ◦

Auto Selection List Search Long-List Fields Power List

Using Calendar

Choose a month.

Choose a year.

Choose a day.

Clearing Data Clear

(M) (M) (M) (M)

Edit Edit Edit Edit

> > > >

Clear Clear Clear Clear

> > > >

Record Field Block Form

Copying Data from a Record Verify your data because all fields may not copy. Quantity Price Item number

Item number Quantity

Discount %

Discount %

Searching for Information

Query Versus Find

Query mode Find mode Menu bar,

Menu bar, Toolbar

[F11] Existing

Find window

window Wildcards

List of values

Query count No find count

Using Find Mode Click the Find icon on the toolbar: ◦ Click the Find button on the Form. ◦ Specify your search criteria. ◦ Review the retrieved records.

Using Query Mode (M) View > Query By Example > Enter: ◦ Enter the search criteria. ◦ (M) View > Query By Example > Run. ◦ (M) View > Query By Example > Cancel.

Query Operators Operat Meaning or = != >

Equal to Not equal to Greater than Greater than or

>=

equal to

<

Less than

99.1 > ‘Joan’ >=55 Window Help

Search frame

Document frame

Error Messages ◦ To give you a hint, the application displays a short message in the message line. ◦ To inform you of an error, the application displays an error window. ◦ A History button also appears in the error window if an error of a more serious nature occurs.

Running Reports and Programs

Using Concurrent Processing

Submits request

Reques t queue

Request runs.

Request 1 Request 2 Request 3 Request 4

Perform other online interactive tasks.

Other online jobs

Running Reports and Programs ◦ Concurrent processing:  Run non interactive tasks, such as reports and programs.  It does not interfere with the interactive work you perform on your computer. ◦ Standard Request Submission (SRS):  Use the SRS interface to run reports and programs.  View report output online.  Schedule reports and programs.  View log information.

QUIZ

(1)

Which colour is used for optional fields in any form of oracle application? (2) One responsibility is shared by many persons? (3) Ctrl+S can be used for save the records?

QUIZ

Summary After completing this lesson, you should have learned how to: ◦ Log in to Oracle Applications ◦ Use Forms and Menus ◦ Use functionality of the buttons and tabs that appear in the Navigator window and other forms ◦ Create Favorites and set Preferences ◦ Understand Form terminology and characteristics ◦ Create, save, edit, and delete record using Forms ◦ Search for data and enter data using Forms ◦ Access online Help ◦ Submit Concurrent and SRS requests ◦ Log out of Oracle Applications

Introduction to Oracle Applications R12

Course Objectives After completing this lesson, you should be able to describe the following: ◦ ◦ ◦ ◦ ◦

Footprint of R12 E-Business Suite Benefits of R12 E-Business Suite R12 E-Business Suite architecture Major components of the architecture File system and database structure

Oracle E-Business Suite

Custome rs

Employe es

Suppliers

Partners

Complete E-Business Suite from Oracle Develop Contracts E-Business Market Projects

Suite

Order

HR Finance

Customers

Maintain

Products

Service

Sell

Suppliers

Fulfill

Plan Procure Make

Fusion Business Intelligence

◦ Automate key internal business processes ◦ Extend automation and collaborate with your trading partners ◦ Drive continuous improvemen t with realtime intelligence

Integrated, Yet Modular

Vendor X Human Resourc es

Oracl e Finan ce

Vendo rY Planni ng

Vendor Oracle Marketi Z Purchas ng ing

Legacy Environment

The open applications solution enables you to: ◦ Leverage investment in existing technology ◦ Eliminate disparate systems as needed

Benefits of Oracle E-Business Suite ◦ Available in multiple (32) languages ◦ Supports multiple currencies ◦ Supports flexible management of business processes ◦ Has a common data model ◦ Supports statutory and customary local requirements ◦ Is built on open standards ◦ Collaborates with trading partners

Information-Driven Applications Develop Contracts Market Sell

Projects HR Finance

Philosophy behind Oracle EBusiness Suite

Customer s, Suppliers, Products, …

• Start with a

common data model that produces a single definition of key business entities (customers, suppliers, products, etc)

Order Plan Procure•

Maintain Service

Make Fulfill

Build a robust suite of applications designed to work together

• Support modular

deployment of tailorable business flows

• Promote low-cost integration with service oriented, standards-based architecture

Major Oracle Application Product Families ◦ Oracle Financials ◦ Project Management Product Suite ◦ Supply Chain Planning and Management Suite ◦ Oracle Manufacturing: Discrete and Process Management ◦ Human Resources Management System Suite ◦ Customer Relationship Management Suite Finan Customer ce Relationship Management Human Resources

Projects

Supply Chain Management

Manufacturing Oracle Workflow

R12 E-Business Suite Footprint New in R12 Financials

Corporate Performance Mgm

Daily Business Intelligence (DBI) General Ledger Balanced Scorecard Receivables Financials & Sales Analyzer Payables Enterprise Planning and Assets Budgeting Cash Management Global Consolidation System Profitability Manager Advanced Collections Financial Consolidation Hub Internet Expenses iReceivables Treasury Lease Management Internal Controls Manager

Financials Centralized Solution Set (FINS) Government, Risk & Compliance Financial Services AccountingGovernment, Risk and Hub (FSAH) Compliance Manager Application Access Controls Application Configuration Controls Governance, Risk and Compliance Intelligence

R12 E-Business Suite Footprint New in R12 Human Resources Management Projects Human Resources Project Costing Self-Service Human ResourcesProject Billing Advanced Benefits Project Resource Management Compensation Workbench Project Collaboration iRecruitment Project Management Payroll Project Portfolio Analysis Performance Management Project Contracts Time and Labor DBI for Projects

Workforce Scheduling

Approvals Management Learning Management iLearning Tutor DBI for HR

R12 E-Business Suite Footprint New in R12 Supply Chain Planning Order Management Advanced Supply Chain Planning Order Management Constraint Based OptimizationAdvanced Pricing Inventory Optimization Release Management Global Order Promising Sales Contracts Collaborative Planning Configurator Strategic Network Optimization iStore Demand Management Supply Chain Planning and Order Advanced Forecasting & DemandManagement Intelligence Management Real-time Sales & Operations Planning Predictive Trade Planning Deduction and Settlement Management Trade Promotion OptimizationAsset Lifecycle Management Enterprise Asset Management Self-Service Work Requests Asset Tracking Property Manager

R12 E-Business Suite Footprint Procurement Purchasing Sourcing Sourcing Optimization iSupplier Portal Procurement Contracts Services Procurement Advanced Pricing iProcurement DBI for Procurement

Manufacturing Discrete Manufacturing Manufacturing Execution System Mobile Supply Chain Applications Flow Manufacturing Flow Sequencing Production Scheduling Repetitive Manufacturing Optimization Process Manufacturing

R12 E-Business Suite Footprint New in R12 Logistics Product Lifecycle Management Inventory Management Product Lifecycle Management Mobile Supply Chain Applications Product Data Synchronization for GDSN and UCCnet Services Warehouse Management Transportation Management CADView-3D Transportation Operational Planning Logistics Inventory Visibility Forwarding & Brokering Operations Freight Payment, Billing & Claims Transportation Sourcing Transportation Cooperative Routing

Fusion Transportation Intelligence

Master Data Management (Hubs Customer Data Management Product Information Managemen Financial Consolidation

R12 E-Business Suite Footprint Marketing and Sales Service TeleService Marketing Service Contracts Trade Management Field Service Advanced Pricing Spares Management TeleSales Advanced Scheduler Field Sales Mobile Field Service Sales for Handhelds Depot Repair Quoting iSupport Partner Management Service Intelligence Proposals Incentive Compensation Marketing & Sales Intelligence

Interaction Center Technology Advanced Inbound Telephony Advanced Outbound Telephony Email Center Scripting

Oracle Applications R12 Architecture

Understanding the Oracle Applications R12 Architecture The following topics are included in the Oracle Applications R12 architecture: ◦ Business architecture ◦ Technical architecture

Business Architecture: Oracle Applications R12 The R12 EBS has five principles that drive its business architecture: ◦ ◦ ◦ ◦ ◦

Modern Foundation Complete End-to-end Integration Global Rapid Implementation

Technical Architecture: Oracle Applications R12

The following topics are included in the technical architecture of Oracle Applications R12 ◦ ◦ ◦ ◦

Forms-based Self-service (HTML/JSPs) Business Intelligence Mobile

Desktop/Client Tier Desktop/Client Tier Application Tier

Internet

Database Tier

Applications Tier

Desktop/Client Tier

Web server/Listener Portal (PHP) Forms server Concurrent Processing server

Internet

Servlet Engine Java Server Pages (JSP) Discoverer server Reports server Administration server

Database Tier

Database Tier Desktop/Client tier Application tier

Internet

Database tier

The Network ◦ Although the network is not a tier of R12 EBusiness Suite’s three-tier architecture, it is a critical component that makes it all work. ◦ R12 EBS allows access through multiple channels including internal networks (LANs/WANs) and external networks (Internet/VPNs). ◦ All of the choices in the network will ultimately affect your performance, for good or bad.

Oracle Applications Technology Layer The Oracle Applications technology layer is an integrated collection of components used by all Oracle Applications modules:

CRM

Financi als

HRMS

Manufactu ring

. . .

The various components of the Oracle Applications Technology Layer Applications technology layer are discussed in the following slides.

QUIZ

(1)

Oracle ERP application has three tier architecture? (True/False) (2) R12 Oracle applications supports how many languages? (3) Is network speed affects the performance of Oracle application? (Yes/No)

QUIZ

Summary In this lesson, you should have learned to describe: ◦ The basic architecture of Oracle Applications ◦ The major components of the architecture

Shared Entities and Integration

Chapter 4

Objectives After completing this lesson, you should be able to recognize the following: ◦ Shared entities within R12 E-Business Suite ◦ The key integration points and business flows between products in E-Business Suite (EBS)

What Are Shared Entities? ◦ Shared entities in R12 E-Business Suite enable one-time definition of an object and the use of that object across several products. ◦ Shared entities are “owned” by a single product for table purposes only.

Shared Entities in E-Business: Examples Entity

Description

AOL

Application administration

Ledger

Accounting information record

Unit of Measure

Method of quantifying item

Items

Raw Materials, Finished Goods , Services

Suppliers

Vendors we buy from

Customers

Buyers of the end product

Sales Force

Individuals credited with Sales

Employees

Personnel who perform assigned tasks

Locations

Business sites (Address)

Organizations

Logical Unit Entities

Application Object Library (AOL) AOL

Currenc ies

Site profile options

Langua ges

User s

Menus

Responsibilities

Ledger Owned by General Ledger

Chart of Accounts

Calend Currency ar

Units of Measure • Length • Base Unit = 1 cm • 1 m = 100 cm • 1 km = 100,000 cm

Units of Measure are used by a variety of functions and transactions to express the quantity and measurement of items.

Units of Measure Responsibility - Inventory, Vision Operations (USA) (N) Setup > Units of Measure

Suppliers

Suppliers are the individuals or companies from which you procure goods and/or services.

Responsibility - Payables, Vision Operations (USA) (N) Suppliers > Entry

Items

You can define and control all items in an inventory.

After the items have been defined, they are assigned to organization.

Responsibility - Inventory, Vision Operations (USA) (N) Items > Master Items

Customers

Customers are buyers of the end products and/or services.

Responsibility - Receivables, Vision Operations (USA) (N) Customers > Customers

Sales Force

Sales Force comprises individuals credited with sales revenue.

Responsibility - CRM Resource Manager, Vision Enterprises (N) Maintain Resources > Resources Responsibility - Order Management Super User, Vision Operations (USA) (N) Setup > Sales > Sales persons

Employees

Employees are individuals employed by the company to perform certain tasks.

Responsibility - Human Resources, Vision Enterprises (N) People > Enter and Maintain

Locations

Locations are physical addresses that may represent your company’s addresses or your customer’s addresses.

Responsibility - Human Resources, Vision Enterprises (N) Work Structures > Location

Organizations

Organization is an entity designation used to partition data into logical units.

Responsibility Human Resources, Vision Enterprises (N) Work Structures > Organization > Description

Key Business Flows Plan

Sour ce

Make

Concept to Release

Mark et

Supp ort

Campaign to Contract to Order Renewal

Forecast to Procure to Demand to Build Pay Plan

Plan to Replenish

Sell

Click to Order

Order to Request to Cash Resolution

Inventory to Fulfillment

Back Offic e Benefits to Payroll

People to Paycheck

Project to Profit

Accounting to Financial Reports

Procure to Pay

Invento ry InventoryActivity Cash Management

Requisitio ns

Purchasing/iProcurement Accounti ng

Accrual s

Supplie rs

Banks Payable s/ iExpense s

Payables/ Expenses/ Payments

Ledge r General Ledger

Demand to Build Requisitions

Purchasing / iProcureme nt Requisiti ons

Cost info

Cost Manageme nt

ASCP/MR P

Planned Order info Material/Resource info

Supply/Demand info

Inventory

UOM s

Capacity WIP

BOM

Engineering BOM info

Item s

Order Management

Engineering

Campaign to Order Marketing communication

Marketing

Phone call placed

Advanced Inbound

Audience

Call Routed Script launched

Discoverer

Scripting

Sales Quote submitted

Order Fulfillment cycle (Order to Cash)

Order to Cash Invent ory activit y

Set of books General Ledger

Inventory

Cash Managem ent

UOM s

Bank s Receivable s/ Revenue/ Receipts

Invoic es Receivable s / iReceivable s

Custome rs

Purchasing / iProcureme nt Re qs

Inter org/ Shipme nts Inventory

Transactio ns

Order Managem ent

Item s

Contract to Renewal Standard sales contract

Sales Contracts

i-Store

Standard sales contract

Service Contracts

Quoting

No item – warranty only Quote to booked Service contract for item with warranty order

Invoice

Order Fulfillment Order to Cash

Accounts Receivable

Request to Resolution Solutions Custom ers

Knowledge Management Merchant assistance

Create SR

i-Support Customer

Ite ms

Inventory

Teleservice

Produ Create return cts Create RMA order owne d Order Capture Order Foundation Fulfillment APIs (Order to Cash) Installed Base

People to Paycheck

HRMS

HR Information

Accounting

General Ledger

Payroll

Cash Management

QUIZ

(1)

Location/physical address is defined by which application? (2) Customer once defined, need to be redefine when invoice generated? (True/False) (3) People to Pay check cycle require four applications integration? (True/False)

QUIZ

Summary In this lesson, you should have learned about: ◦ The shared entities within R12 E-Business Suite ◦ The key integration points and business flows between products in R12 E-Business Suite

System Administration Fundamentals

Chapter 5

Course Objectives After completing this lesson, you should be able to do the following: ◦ Describe the layers of access control in Oracle Applications security ◦ Define Function Security ◦ Use Menu and Function Security to modify responsibilities ◦ Define Data Security ◦ Set profile options ◦ Define Standard Request Submission

Introduction to Application Security

Successive Layers of Access Control Access Control is implemented in successive layers and each layer builds upon the one that precedes it.

6

Self Service and Approvals

5

Registration Processes

4

Delegated Administration

3

Role Based Access Control

2

Data Security

1

Function Security

Optional

Required

Increasing Flexibility and Scalability In Oracle User Management, each layer of access control adds an increasing level of administrative flexibility and scalability.

Flexibility and Automation Level of Administratio Self Service and Approvals

End Users

Registration Processes Delegated Administration

Local Administrators

Role Based Access Control Data Security System Administrator Function Security

Function Security

Function Security ◦ Defines an application ◦ Defines data groups ◦ Creates responsibilities and users

Application Security: Overview

Windows

Oracle

User

Responsibili ty

Application

Reports

Use of Menu and Function Security to Modify Responsibilities

Importance of Responsibilities Responsibilities determine: ◦ ◦ ◦ ◦ ◦

Menus and Forms access Available reports Applicable Ledgers Associated Operating Unit Accessible applications

Components of a Responsibility

Data group

Request security group Menu Exclusions

Defining a New Responsibility 1

Enter application and responsibility name

2 Enter start and end dates 3

Select data group

4

Select menu

5

Select request group

6 Enter menu or function exclusions

Defining a New Application User 1

Enter user name and password

2Require password change Limit access attempts

3

Enter user’s start date

4

Assign one or more responsibilities

Steps 1, 3, and 4 are required

Assigning Responsibilities to Users Using Predefined Responsibility

Using Custom Responsibility Define or modify components

Define 1 or modify responsibility Define or Modif Exclude y functions and menus

1 Assign

Define application user

2

Define application Assign user

Managing Function Security

Menu Level 1 Function Menu Level 2 Function Function

Function: A set of executable code available as a menu option

Menu Level 3 Subfunction Subfunction Function Menu Level 2 Subfunction Menu Level 2 Function Function

Subfunction: A subset of a form’s functionality

Excluding Functions and Menus Menu Level 1

Function-A Menu Level 2

Excluding a function affects the function regardless of level.

Function-B Function-C Menu Level 3

Function-A Function-D Function-E Menu Level 2 Function-D

Menu Level 2 Function-F Function-G Function-H

Excluding a menu excludes all of its child functions.

Data Security

Set Profile Options

Set Profile Options ◦ ◦ ◦ ◦

Set profile option values Use user profile option settings Use system profile option settings Discuss profile categories

Profile Hierarchy Levels: Security

User level Responsibility level Application level Site level

Personal Profile Values Depending on the responsibility, many users can change their personal options: ◦ Navigate to (N) Profile > Personal to see a list of the profiles already defined. ◦ If the User Value field is unprotected, you can select a value for this profile option from the list of values, or enter a value directly.

System Profile Options The System Administrator can set profile options at any level:

◦ Navigate to (N) Profile > System to see the Find System Profile Values Window. ◦ You can set a profile value at the user, responsibility, site, or application level for profile options using the Security hierarchy type.

Standard Request Submission

Concurrent Processing ◦ Runs non-interactive tasks, such as reports and programs ◦ Does not interfere with the interactive work performed in your computer

Standard Request Submission ◦ Use the Standard Request Submission (SRS) interface to run reports and programs. ◦ To view the report output online ◦ To schedule reports and programs ◦ To view log information

Submitting a Request

QUIZ

(1)

Function security is used by System Administrator for what purpose? (2) User must have three responsibilities for work on Oracle application? (True/False) (3) Profile option set at how many levels?

QUIZ

Summary In this lesson, you should have learned to: ◦ Describe the layers of access control in Oracle Applications security ◦ Define applications, responsibilities, and users in Function Security ◦ Use Menu and Function Security to modify responsibilities ◦ Define components of Data Security ◦ Describe user and system profile options ◦ Define concurrent and Standard Request Submission

Fundamentals of Flex fields

Chapter 6

Objectives After completing this lesson, you should be able to do the following: ◦ ◦ ◦ ◦ ◦

Describe flex fields Define value sets Define key flex fields Define descriptive flex fields Enter values

Agenda ◦ ◦ ◦ ◦

Overview of flex fields Creating value sets Defining the key flex field structure Defining the descriptive flex field structure ◦ Defining values

Overview of Flex fields

Using Flexfields to Configure Applications

General Ledger

Assets

Application windows

User-defined flexfield windows

Benefits of Flexfields Flexfields enable the following benefits: ◦ Configuration of applications to support your accounting, product, and other codes ◦ Construction of intelligent keys ◦ Configuration of applications to capture additional data ◦ Use of the application to validate values and value combinations entered by the user ◦ Support for multiple field structures depending on data context

Key and Descriptive Flexfields Key flexfields build unique __ Item Information _________ entity identifiers Category COM Item 876 Color

LTN

Payment TypeCC Store54321 Dept987 4958-2938-4747 Number Exp. Dt12 - 99

Compu ter Monito r Light tan

Descriptive flexfields gather additional information

Key Flex fields

Sales Information 3987 Transaction

Standard window

Payment Type

CustomerJane Doe COM-876-LTN Item Computer - Monitor - Light Tan[ ] Description

Key Flex field window

Item Information Category COM Item 876 Color LTN

Computer Monitor Light tan

Using Key Flexfields to Build Intelligent Keys Business A

Business B

Account Entry

Corporation

10

Subsidiary

283

Division 3003 Department

025

Account 203

Account Entry

Company 21 Division 42 Department 502 Account 015

Key Flex field: Examples ◦ General Ledger  Accounting Flex field

◦ Assets  Asset Key Flex field  Location Flex field  Category Flex field

◦ Service  Service Item Flex field

◦ Human Resources  People Group Flex field  Job Code Flex field

◦ Receivables  Territory Flex field  Sales Tax Location Flex field

◦ Inventory    

Item Categories System Items Sales Orders Item Catalogs

Descriptive Flex fields Sale Information Transaction3987 Payment Type CC Jane Doe Customer

Ite COM-876-LTN m Computer - Monitor - Light Tan [] Description

CK Payment Type

C Payment Type

Store 54321

C Store54321

Dept 987

Dept 987

Number1028 MC 4565-3939 Second ID

Number4958-29384747 Exp. Dt12 - 99

Descriptive Flexfield: Examples The following are examples of instances where descriptive flexfields are used: ◦ Storing supplier numbers from converted suppliers ◦ The Flexible Address Format ◦ Storing order information with an invoice ◦ Storing project information with an invoice ◦ Storing vehicle information associated with the asset category “Vehicle” ◦ Name of the customer service representative responsible for the sales order ◦ Web link to map property or location in Property Manager

Key and Descriptive Flexfield: Comparison Key Flex fields ◦ Owned by one application; used by many ◦ Required to set up, not always required to use ◦ Supports intelligent keys ◦ Identifies entities ◦ Drives reporting

Descriptive Flex fields ◦ Associated with tables in a specific application ◦ Setup is optional ◦ No intelligence, stores additional information ◦ Captures additional information only

Components of a Flex field Flex field/Structure

Segments

Values (if needed)

Value set format and validation

Flex field Structure

Segment 1

Segment 2

PC COMPUTER

SERVER LAPTOP

10 CHAR Independ ent Upper Case Required

12 Char Dependen t Upper Case Required

General Steps to Implement a Flexfield

◦ Plan flexfield segments, structures, value sets, and values ◦ Define value sets ◦ Define flexfield structure ◦ Define values ◦ Define security and cross-validation rules, if necessary

Creating Value Sets

Planning a Value Set ◦ Determine basic attributes of the set. ◦ Select the appropriate validation type.

Validating Input Using Value Sets

Category value set COM

MACH FURN

Item Information Category COM

Computer

Item 876 Color

755

Monitor Light tan

LTN

876

933

Item value set

Value Set Attributes ◦ Name: Unique value set name (Do not use XX-, XX_ , XXX-, XXX_ or any Oracle reserved name.) ◦ Description: Free-form descriptive text ◦ List type  List of Values  Long List of Values  Pop list ◦ Security type  No security  Hierarchical  Non-hierarchical

Types of Value Sets ◦ None: Validation is minimal. ◦ Independent: Input must exist on the previously-defined list of values. ◦ Dependent: Input is checked against a subset of values based on a prior value. ◦ Table: Input is checked against values in an application table. ◦ Special: Value set uses a flex field itself.

Types of Value Sets ◦ Pair: Two flexfields together specify a range of valid values. ◦ Translatable Independent: Input must exist on previously-defined list of values; translated value can be used. ◦ Translatable Dependent: Input is checked against a subset of values based on a prior value; translated value can be used.

Planning Data Format Validation ◦ Format Type: Value data type ◦ Maximum Size: Maximum permitted size for a value ◦ Precision: Number of decimal places ◦ Numbers Only: Entry of numbers 0–9 only ◦ Uppercase Only: Lowercase input becomes uppercase ◦ Right-Justify Zero-Fill: Shifts number to right, pads from left ◦ Max/Min Values: Beginning and ending values of a range

Defining the Key Flex field Structure

Planning a Key Flex field ◦ Identify the target flex field, the information required by Oracle Applications, and any qualifiers. ◦ Plan the flex field structure, behavior, and appearance. ◦ Define the key flex field structures. ◦ Define any value sets required and their values. ◦ Define security rules when appropriate. ◦ Define cross-validation rules when appropriate. ◦ Define shorthand aliases as needed.

Designing the Key Flexfield Layout

Title

Description: Description: Sales

Information

Category COM Structure

Order of segments

Item 876 Color LTN

Prompts

Segment separator Value sets

COM FURN APPL

Valu es

Key Flexfield Structure Business A

Business B

_____Account Entry __ _____Account Entry __

10 Corporation 203 Subsidiary Division3003 Department 025

10 Company Division203 3003 Department Account025

Account203

10-203-3003-025-203 10-203-3003-025

Storing Code Combinations _____Account Entry __ Company 10 (Code combination)

Division 203 Department

10 - 203 - 3003 - 025

3003

Account 025

Code Combinations Table SEGMENT1 10

SEGMENT2 203

3003

SEGMENT3 025

SEGME

Other Key Flex field Features ◦ Dynamic insertion of new values ◦ Cross-validation of segment value combinations ◦ Security on value access ◦ Aliases to speed up data entry

Cross-Validating Values Country Value Set

State Value Set

USA United States CA California UK United Kingdom NY New York TX

Asset Location Flexfield

Texas

City Value Set Los Angeles London New York Houston

Asset Location Country

UK

United Kingdom

State

CA

California

City

Houston

“UK-CA-Houston” not allowed

Using Shorthand Aliases

Sales Information Transaction 3754 CustomerBig Manufacturing Address 1211 State City Dallas

StateTX

Zip 75219

USA Country

Item COM-876-LTN

Item Description: Alias Part Tan Monitor

Tan MonitorCOM-876-LTN List Hard Drive COM-535-15G of Laser PrinterCOM-788-630 Aliases

Defining the Descriptive Flex field Structure

Determining the Descriptive Flexfield Name

Procedure to determine the name of the descriptive flexfield: 1. Click on a field in the same block in which the descriptive flexfield appears. 2. Select Help > Diagnostics > Examine.

Identifying the Necessary Information

Store number

Check number

Credit card number

Expiration date

Down payment

Grouping Information by Usage

Situation 1: Store numberDown payment (finance)

Situation 2: Store numberCheck number (check)

Expiration Situation 3: Store numberCredit card number Date (credit card)

Isolate Common Information

Situation 1: (finance)

Store numberDown payment

Situation 2: (check)

Store numberCheck number

Expiration Situation 3: Store numberCredit card number (credit card) Date

Used by all tasks

Varies by task

Determine Different Contexts Finance context

Situation 1: (finance)

Store numberDown payment

Check context

Situation 2: (check)

Store number Check number

Credit card context Expiration Situation 3: Store numberCredit card number Date (credit card)

Descriptive Flexfield Components ◦ Global segment: Displays information that is common to all contexts ◦ Context-sensitive segment: Displays information that is appropriate only to a particular context ◦ Reference field: A field on the application window whose value is used to determine contexts ◦ Context field: A field in the structure whose value is used to determine contexts

Using Global Segments Finance context Global Segments (Common)

Credit card context

Store number

Store number

Check context

Store number

Context-Sensitive Segments Finance context ContextSensitive Segments (Vary by context)

Store number Account Finance terms Down payment

Credit card context

Store number Card number Expiration date

Check context

Store number Second ID

Distinguishing Between Contexts Finance context

Store number Account Finance terms Down payment Context Credit card context field Check context

Store number Card number Expiration date

Store number Second ID

Using Reference Fields Existing application window

Reference field

Global

Global

Data

Data

Elements

Proposed flexfield designs

Elements

Context

Context

Sensitive

Sensitive

Fields

Fields

Context 1

Context 2

QUIZ

(1)

Which are the types of Flexfields available in Oracle application? (2) [ ] is the symbol for identification for Key FF on any form? (3) What is the purpose of Descriptive FF in Oracle ERP?

QUIZ

Summary In this lesson, you should have learned how to: ◦ ◦ ◦ ◦

Describe flexfields Define value sets Define key flexfields Define descriptive flexfields

Fundamentals of Multi-Org Chapter 7

Objectives After completing this module, you should be able to do the following: ◦ Define Multiple Organization (Multi-Org) ◦ Discuss the types of organizations supported in the Multi-Org model ◦ Explain the entities of Multi-Org ◦ Explain how Multi-Org secures data ◦ Define Multi-Org Access Control

What Is Multi-Org? ◦ Multi-Org is a server-side (applications and database) enhancement that enables single installation of Oracle Applications. ◦ Multi-Org keeps transaction data and some setup data separate and secure by different lines of business.

Basic Business Needs The Multi-Org enhancement provides features that enable you to: ◦ Support multiple business units even if they use different ledgers ◦ Secure access to data on a single instance by line of business ◦ Define different organizational models ◦ Sell and ship from different legal entities ◦ Procure and receive from different legal entities ◦ Produce reports across entities or within a single entity

Organization Types Supported in the Multi-Org Model

Types of Organizations Supported in the Multi-Org Model HR

Business Group

Ledger

GL, FA

GRE/Legal entity

AP, PO, Operating Unit AR, OM, and so on

Inventory Organization

INV, MFG Ship

Sample Organization Structure Ledger

LE

LE

OU

OU

OU

MIO IO

IO

IO

IO

IO

IO

Define the Organization Structure Corporate

US

Canada

Japan

US

Canada

Japan

Chicago

Inventory

West

East

Tokara Islands

Warehouse

Calgary Montreal Quebec Manufacturing Inventory Manufacturing

Adding to the Organization Structure Original

Add New

Wid Co. Ledger

Wid Co. Ledger

US 1 (LE)

US 1 (LE)

US 2 (LE)

West Ops (OU)

West Ops (OU)

East Ops (OU)

Plant 1 (IO)

Plant 1 (IO)

Plant 2 (IO)

How Multi-Org Secures Data

Security Model

Select

Users

Tied to an Responsibilities

Operating Unit

The responsibility is key to multi-org security and reporting. It determines: ◦ Operating unit ◦ Reporting ability

Global Registries Operations US

Supplier ABC Corporation

Address 1: New York, NY Address 2: Orlando, FL New York Address 3: Green Bay, WI

Distribution SNG

Address 1: Austin, TX Address 2: New York, NY Singapore

Note the separation of supplier sites by OU

Cross Organization Reporting ◦ Report at multiple levels:  Ledger  GRE/Legal entity  Operating Unit ◦ Security profile  MO: Top Reporting Level ◦ Enhanced reporting features:  Reporting Level  Reporting Context

Organization Reporting Options Ledger

◦ MO: Top Reporting Level is set to GRE/Ledge r. ◦ Reporting Level parameter is set to Ledger. ◦ Reporting Context parameter is set to Ledger 1.

Ledger 1

LE1 GRE/Legal entity

OU1 Op Unit

LE2 GRE/Legal entity

OU2 Op Unit

OU3 Op Unit

Organization Reporting Options Legal Entity

Ledger

LE1 GRE/Legal entity OU1 Op Unit

LE2 GRE/Legal entity OU2 Op Unit

OU3 Op Unit

◦ MO: Top Reporting Level is set to GRE/Legal entity. ◦ Reporting Level parameter is set to GRE/Legal entity. ◦ Reporting Context parameter is set to LE2.

Organization Reporting Options Operating Unit

◦ MO: Top Reporting Level is set to Operating Unit. ◦ Reporting Level parameter is set to Operating Unit. ◦ Reporting Context parameter is set to OU3.

Ledger 1

LE1 GRE/Legal entity OU1 Op Unit

LE2 GRE/Legal entity

OU2 Op Unit

OU3 Op Unit

QUIZ (1)

Multi-Org structure is used for enablement of multiple organizations/ Business units for accessing of Oracle application? (True/False) (2) Operating unit is represented by which symbol in Multi-Org structure? (3) One can define different LE under one LEDGER? (True/False)

QUIZ

Summary In this lesson, you should have learned how to: ◦ Define Multi-Org ◦ Explain the Multi-Org entities ◦ Explain how data is secured

Fundamentals of Workflow and Alerts Chapter 8

Objectives After completing this lesson, you should be able to do the following: ◦ Discuss Workflow concepts ◦ Describe the benefits of Workflow ◦ Describe alerts

Workflow Processes

Enabling E-Business Streamlined business processes play a critical role in the transformation to ebusiness. Workflow delivers a complete business process definition, automation, and integration solution.

Workflow: The wiring for e-business

Workflow Processes Custom er: Receive External Order

Customer: Credit Check

Custom er: Get Order Details

Customer : Advanced Shipment Order Process An d End Customer Customer: : Send Order Send Acknowledgme Supplier nt Invoice

Custom er: Receive iStore Order

Customer: Stock Check

Workflow Activities: Examples A workflow is a set of business rules that can: ◦ Create accounting based on your requirements ◦ Route business documents internally for approval ◦ Initiate an outbound message (queue an approved purchase order for transmission to a supplier) ◦ Be started as a result of an inbound message (for example, an inbound Payables Invoice) ◦ Generate and send notifications that can be viewed from your personal home page or the Notifications Window ◦ Generate and send email to an email client (respond directly to notifications without accessing Oracle Applications)

Integrating Business Processes Data warehouse

Order entry

Warehouse

Shipping

Workflow Human resources

Accounting Web store Credit management

Benefits of Workflow

Workflow-Driven Business Processes Workflow allows you to focus on managing the business process, not individual transactions.

Define and implement your business policies Streamline the entire process Route information Capture exceptions and take action Build continuous improvements directly into the process definition ◦ Adapt your processes as your business changes

◦ ◦ ◦ ◦ ◦

Workflow-Driven Business Processes ◦ Workflow automates and streamlines business processes contained within and between enterprises. ◦ For example, you can use workflow processes to:  Add personalized trading partner rules  Validate self-service transactions  Approve standard business documents  Step through daily transaction flows  Integrate with trading partner systems

Overview of Alerts

Alert Process Overview Alert!

◦ Send email message ◦ Submit concurrent program request ◦ Run SQL script ◦ Run a SQL script that starts a workflow ◦ Run operating system script

Server

Client

Client

Event Alerts: Examples Event alerts start when a record is inserted or updated. Examples of event alerts that could be created include: ◦ New Code Combination: Notify GL Manager as soon as a new account combination has been created. ◦ Shipment Confirmation: Notify a user as soon as a shipment has been processed. ◦ Supplier Hold: Notify Purchasing Manager as soon as a supplier has been placed on hold. ◦ Database monitoring: Inform the DBA as soon as database tables need more space and automatically allocate space.

Periodic Alerts: Examples ◦ Personnel: Show all employees terminated in the last six months (monthly) ◦ Payroll: Show current balance and vacation reported by month (monthly) ◦ Purchasing: Detect creation or edit of Vendor with nonstandard payment terms (weekly) ◦ Purchasing: Show all blanket agreements that will expire (daily)

What Is an Exception? ◦ An exception is a specified condition found during an alert check. ◦ For example, an alert checking for users who did not change their passwords within the designated time finds five users that meet the criteria. Each user found is an exception.

Action Types An action occurs after a monitored database event occurs or a periodic check of the database has been performed. Alert can perform the following actions: ◦ Send an email message ◦ Submit a concurrent program request ◦ Run a SQL statement script ◦ Run an operating system script

Differences Between Alert and Workflow Alerts ◦ Run on insert, update, or concurrent request ◦ Limited conditional logic ◦ Limited predefined frequencies

Workflow ◦ Run on potentially any action, concurrent request ◦ Any conditional logic ◦ Almost any frequency

QUIZ

(1)

In Oracle Application Work Flow is used for what? (2)Alerts can work on any conditional Logic? (True/False)

QUIZ

Summary In this lesson, you should have learned how to: ◦ Recognize the benefits of Workflow ◦ Describe a Workflow process ◦ Describe Alerts

Oracle Business Intelligence Products: Overview Chapter 9

Objectives After completing this lesson, you should be able to do the following: ◦ Describe the features of Daily Business Intelligence ◦ Identify the business needs surrounding Daily Business Intelligence ◦ Explain the relationship between Daily Business Intelligence and E-Business Suite

R12 Daily Business Intelligence: Overview

Daily Business Intelligence: Introduction Plan and Model Sales

Marketing

Manufacturing Purchasing

Finance

Service

Human Resources

Project Mgmt

Report and Analyze

DBI

Execute

ReportsUsers

Provide planning, execution, and reporting capabilities to optimize business performance

Business Needs for Daily Business Intelligence ◦ ◦ ◦ ◦ ◦

Cost control Changing market Information availability Increased accountability Emphasis on corporate governance

Daily Business Intelligence in EBusiness Suite

Develop Contracts E-Business Projects

Suite

HR

Market Sell Order

Customers Finance Maintain

Suppliers Products

Service

Plan Procure Make

Fulfill Business Intelligence

Role Based, Daily, Integrated Management Reporting for E-Business Suite

Daily Business Intelligence: Coverage ◦ Financials ◦ Human Resources ◦ Interaction Center ◦ i-Store ◦ Marketing ◦ Product Management ◦ Projects

• • • • •

Purchasing Quoting Sales Supply Chain Service Contracts

Daily Business Intelligence Report Components ◦ Overview Pages ◦ Parameter ◦ Responsibilit y ◦ Region ◦ KPI

Daily Business Intelligence Pages Parameters

Regions

User with responsibili ty assigned

Daily Business Intelligence Parameters Fiscal date and Days until period end

Period Type

Date

Primary Dimension

Compar e To

Currenc y

Daily Business Intelligence Regions Parameter region

KPI regi on

Table region

Links region

Daily Business Intelligence Reports

Graphical region

QUIZ

(1)In

DBI D Stands for?

(2)

KPI is component of DBI Reports? (True/False)

QUIZ

Summary In this lesson, you should have learned how to: ◦ Describe Daily Business Intelligence features ◦ Identify the business needs surrounding Daily Business Intelligence ◦ Explain the relationship between Daily Business Intelligence and E-Business Suite

Thank You

Oracle General Ledger Process R12 Oracle General Ledger Management Fundamentals

Oracle General Ledger Overview Other Subledgers Manufacturing

Customer Relationship Management

Oracle General Ledger

Projects Oracle Financials Human Resources Management

General Ledger Overview

Other Subledgers

Review Edit

General Ledger Record Analyze, Correct, and Adjust

Functions and Features

Information Access Data Collection

Financial Controls Financial Reporting and Analysis

General Ledger Accounting Cycle Consolidate

Review/ Correct Balances

Revalue/ Translate

Run Reports/ Close Period

Open Period

Review Post

Create/Reverse Journal Entries

Critical Implementation Issues Identify critical implementation issues that affect multiple business areas: • • • •

Shared information Information flows Open interfaces Non-Oracle systems

Oracle General Ledger Integrates with … Financials ● ● ● ● ● ● ● ●

Payables Receivables Assets Purchasing Projects Treasury Property Manager Lease Management

HRMS ● ●

Human Resources Payroll

Continued…

Oracle General Ledger Integrates with … Public Sector Manufacturing ● ● ●

Inventory Work in Process Labor Distribution

• • • •

Grants Accounting Public Sector Budgeting Public Sector Financials Federal Financials

Continued…

Also Integrates with … Business Intelligence/Analytic Solutions ● Financial Consolidation Hub ● Enterprise Planning and Budgeting (EPB) ● Oracle Financial Services Applications (OFSA) ● Daily Business Intelligence (DBI) ● Activity-Based Management (OABM)

Integrating with Subledgers

Subledgers

GL_BALANCES

GL_INTERFACE

Post

Journal Import

Journals

Importing to General Ledger from Non-Oracle Applications Journal Import

Web ADI Budgets

General Ledger

Other feeder systems

Overview of Accounting Setup Manager Central place for defining and maintaining accounting setup for the following: ● Legal Entities ● Operating Units ● Ledgers (primary and secondary ledgers) ● Reporting Currencies ● Subledger Accounting ● Intercompany and Intracompany Balancing ● Sequencing (Accounting and Reporting Sequencing)

Foreign Currency Concepts The three key foreign currency concepts in Oracle General Ledger are: Conversion

Revaluation

Translation

Multiple Currency Support If one or more of the following are different,

If difference is only currency,

US GAAP Accrual Chart of accounts

Use a Secondary Ledger

Calendar

Accounting Method

Currency

Use Reporting Currencies

Budgeting Oracle General Ledger gives you a variety of tools to create, maintain, and track your budgets, including the ability to upload budget amounts from an Excel spreadsheet.

January 2002 Cost Center 100 Actuals

Budgets

Variance

Salaries

14,000

15,000

1,000

Supplies

4,000

3,500

(500)

Travel

1,500

1,700

200

TOTAL

19,500

20,200

700

Overview of Enterprise Planning and Budgeting (EPB) EPB

Business process flows

Exception alerts

Allocations rules

Enhanced reporting

Many out of the box calculations

Reporting and Analysis Oracle General Ledger provides you with a variety of reporting, consolidating, and analysis capabilities. • Online account and transaction analysis • Standard reports and listings • Financial Statement Generator reports • Web ADI Report Manager • Oracle Enterprise Planning and Budgeting

Standard Reports and Listings Oracle General Ledger delivers over 70 standard reports. The following categories provide financial and non-financial information for General Ledger data. Account Analysis

Budget

Chart of Accounts

Consolidation

Currency

General Ledger

Journals

Trial Balance

Execution

Other

Financial Statement Generator Reports (FSG) Oracle General Ledger's Financial Statement Generator (FSG) is a powerful and flexible tool you can use to build your own custom reports without programming.

Row

Report Column

Accounting Setup Manager

R12 Oracle General Ledger Management Fundamentals

Accounting Setups An accounting setup is based on several factors, such as: ● ● ● ●

legal environment number of legal entities maintained in the same primary ledger business needs transaction processing needs

Ledger Processing Options This table is an example of ledger attributes for a global company that has four legal entities—two in the U.S., one in the U.K., and one in France. Ledger Attributes

U.S. East Operations

U.S. West Operations

U.K. Operations

France Operations

Chart of Accounts

Corporate

Corporate

Corporate

French Statutory

Accounting Calendar/Period Type

Monthly/Month

Monthly/Month

Monthly/Month

Fiscal/Fiscal

Currency

USD

USD

USD

EUR

Subledger Accounting Method

Standard Accrual

Standard Accrual

Standard Accrual

French GAAP

Ledger Options

•Enable Average Balances •Enable Journal Approval

No Average Balances or Journal Approval enabled

No Average Balances or Journal Approval enabled

No Average Balances or Journal Approval enabled

Secondary Ledgers Additional ledgers called secondary ledgers can optionally be assigned to an accounting setup to maintain multiple accounting representations for the same legal entity. For example: ● ● ● ●

Subledger Level Secondary Ledgers Journal Level Secondary Ledgers Balance Level Secondary Ledgers Adjustments Only Secondary Ledgers

Reporting Currencies If you only need a different currency representation of the primary or secondary ledgers, assign reporting currencies to them. For example: ● ● ●

Subledger Level Reporting Currency Journal Level Reporting Currency Balance Level Reporting Currency

Accounting Setups with Multiple Legal Entities Multiple Legal Entities When an accounting setup has more than one legal entity…

…Multiple legal entities can share the same primary ledger attributes.

Accounting Setups with No Legal Entities

No Legal Entities Accounting setups that have no legal entities assigned…

…Can be used for multiple purposes according to business needs.

Designing the Chart of Accounts Feature Comparison by Accounting Setup ●

●

The number of legal entities assigned to an accounting setup affects different key features available in the E-Business Suite. Review the features in the following table to understand how different features are affected. Feature

One Legal Entity Assigned

Multiple Legal Entities Assigned

No Legal Entities Assigned

Open/Close GL Accounting Periods

Legal entities can open/close periods at different times.

All legal entities in a ledger must open/ close periods at the same time.

The standalone ledger can open/close periods independently.

Document Sequencing

Legal entities can have autonomous document sequencing rules.

All legal entities in a ledger must share the same document sequencing rules.

The ledger can have autonomous document sequencing rules.

Multiple Legal Entity Journals

No

Journal entries can cross multiple legal entities.

N/A No legal entities exist.

Q&A

Ledger R12 Oracle General Ledger Management Fundamentals

Ledgers Defined Ledgers The Ledgers represent the core of a company’s financial records where every transaction flows through.

Accounting Setup Manager Maintaining Multiple Accounting Representations with Secondary Overview Ledgers Legal Entity

Accounting

Corporate Ledger (Primary Ledger)

Local Statutory Ledger (Secondary Ledger)

SLA

SLA Subledger Transactions

Transaction

AP

AR

FA

Other Subledgers

Secondary Ledgers Secondary Ledgers The Secondary Ledgers are used for supplementary purposes and can be used for global companies to comply with various legal requirements.

Reporting Currencies If difference is only currency,

If one or more of the following are different,

US GAAP Accrual Corporate Chart of Accounts

use a Secondary Ledger

Monthly Calendar

Accounting Method

Currency

use Reporting Currencies

Accounting Setup Steps GL SETUP STEPS

SETUP

From the Accounting Setup Manager

Define Chart of Accounts

Define Legal Entities

Complete Accounting Options

Define Calendars

Assign Legal Entities for Accounting Setup (optional)

Complete Accounting Setup

Enable Currencies

Define Primary Ledger

Complete Optional Setup Steps

Define Secondary Ledger(s) (optional)

Accounting Calendar You create a calendar to define an accounting year and the periods it contains.

Unlimited Currencies • You can enable predefined currencies or set up your own customized currencies • You can enable a variety of currencies to allow you to enter transactions in multiple currencies

Chart of Accounts Your chart of accounts is a list of Accounting Flexfields you create to identify general ledger accounts • This flexible structure is made up of subfields or segments • Each segment has a name and a set of values

Company

Division

Department

Account

Project

Identifying Business Requirements Identify the aspects of your business that you need to track and analyze; pay specific attention to aspects that span several applications. Examples include: • • • • •

Company, legal entity, fund Division, region, territory, state, country Location, plant, office, store Cost center, department, function Natural Account categories: – asset, liability, owner's equity, revenue and expense

• Product, product line, line of business, channel • Project, phase, task, job, work order

Creating Accounting Flexfields To create an Accounting Flexfield: 1. 2. 3. 4. 5. 6.

Define a value set Define an account structure Define valid segment values Optionally, create account combinations Optionally, create aliases Optionally, define security rules

Defining Value Sets Use value sets to control the characteristics and format of the Accounting Flexfield segment. Value_set 1 Format: Char

Value_set 2 Format: Char

Value_set 3 Format: Char

Value_set 1 Format: Char

Max size: 2

Max size: 3

Max size: 4

Max size:2

Validation: Independent

Validation: Independent

Validation Independent

Validation: Independent

Balancing

Cost Center

Natural Account

Intercompany

The same value set can be used more than once in the same Accounting Flexfield structure.

Defining the Accounting Flexfield Structure

Defining Segment Values Enter valid values for each segment before using them in the Accounting Flexfield segments. Value_set 1 Format: Char

Value_set 2 Format: Char

Value_set 3 Format: Char

Value_set 1 Format: Char

Max size: 2

Max size: 3

Max size: 4

Max size:2

Validation: Independent

Validation: Independent

Validation Independent

Validation: Independent

Balancing

Cost Center

Natural Account

Intercompany

01 02 03

100 101 999

TSAL 1000 9999

01 02 03

Populating Segment Value Attributes Attributes for each value include: ● ● ● ● ●

Translated Value Description Parent Group and level Segment qualifiers – – – –

● ●

Allow budgeting and posting Account type – natural account segment values Control Account Reconciliation Flag

Enabled Date From and To

Segment Qualifiers Account Type

Asset, Liability, Owners' Equity Revenue, Expense Budgetary Dr, Budgetary Cr

Budget Entry Allowed

Yes or No

Posting Allowed

Yes or No

Third Party Control Account

Payables, Receivables, Yes, or No

Reconciliation Flag

Yes or No

Ledger Sets

Ledger Sets

Use ledger sets to group multiple ledgers for processing efficiency

Data Access Sets

Data Access Sets enable the specification of: • read only or read and write access

Q&A

Basic Journal Entries R12 Oracle General Ledger Management Fundamentals

Journal Entries and the Accounting Review/ Cycle Consolidate

Correct Balances

Revalue/ Translate

Run Reports/ Close Period

Open Period

Review Post

Create/Reverse Journal Entries

Journal Creation Methods

Manual Entry Reversals Recurring MassAllocations

Journal Import

Web ADI

Journal Components Every journal entry in Oracle General Ledger has three components.

Enter Journals

Batch

Header

Lines

Grouping Journals into Batches You can organize journal entries with common attributes into batches. Batch 01 Mar-02 journal entries

Batch 02 Accrual journal entries

Batch 03 Euro journal entries

Manual Journal Entries A manual journal entry is entered directly into Oracle General Ledger. Typical manual journal entries include the following: ● ● ● ●

Functional currency entries Foreign currency entries Statistical entries Intercompany entries

Performing Additional Journal Actions

Reverse Journal

Post

Change Period

Check Funds Reserve Funds View Results

Posting Journals Account Balance

Enter journal

Post journal

Prepost

$500

Journal entry

$ 25

After post

$525

Report and inquire on updated account balances

Q&A

Advanced Journal Entries

R12 Oracle General Ledger Management Fundamentals

About Recurring Journals Define recurring journals for transactions that repeat every accounting period, such as accruals, depreciation charges, and allocations

Recurring Journal Types There are three major types of recurring journals Skeleton Dr.

Temporary Labor………….. Cr. Salaries Payable……………..

Standard Dr.

Auto Lease Expense………..10,000 dollars Cr. Accounts Payable……………....10,000 dollars

Formula Dr.

Bad Debt Expense……….. Cr. Bad Debt Reserve………..

Creating Recurring Journals Create Recurring Journal Definition

Generate Recurring Journals

Delete the Journal Entry and Correct the Definition

Review Entries – Are the Entries Correct? Yes Post Entries

No

Recurring Journal Entry Lines Define an unlimited number of journal entry lines for each recurring journal entry

Specify the accounts to update with the recurring journals Recurring JE Lines

Enter the amount to post to the designated account, or a formula to calculate the journal amounts Indicate an automatic offsetting line for a recurring journal entry by entering the line number 9999

Automatic Offset Example Line

Account

Debit

Credit

10

AR: Consulting Revenue

1,000

20

AR: Training Revenue

4,000

30

Sales Revenue

2,000

9999

Services Revenue (Offset Line)

3,000

(System calculated)

MassAllocations Overview MassAllocations: A single journal entry formula that allocates revenues and expenses across a group of cost centers, departments, divisions, or cost centers Total rent

1/3 Chicago rent

1/3

1/3

Paris rent

Tokyo rent

MassAllocations versus Recurring Journals Type of Entry MassAllocations Recurring Journals Formula Entries

Yes

Yes

Standard Entries

Yes

Yes

Skeleton Entries

No

Yes

Currency

Ledger or STAT

Ledger, Foreign or STAT

Formulas per Journal Line

One formula for many lines

One formula per line

Formula

A*B/C

Any formula

Steps to Create MassAllocation Journals Step 1

Create MassAllocation Definition

2

Validate Definition

3

Generate MassAllocation Journals

4

Review Entries

5

Post Entries

Defining MassAllocation Journals Define a single formula to allocate amounts across a group of balancing segment values, departments, or cost centers. You can create a new MassAllocation batch or copy an existing batch.

Allocate total rent expense.

Dept A

Dept B

Dept C

Defining MassAllocation Formulas All MassAllocation formulas use the following equation to determine allocation amounts: Cost Pool * (Usage Factor/Total Usage)

Oracle General Ledger uses the following format to represent the equation. Each factor in this equation relates to a separate formula line: A * B/C

You can enter any combination of fixed amounts and account combinations in formula lines A, B, or C.

Account Segment Types When entering an account into a Mass Allocation formula line, assign a segment type for each account segment Looping

Summing

Constant

Target and Offset Accounts

Lines

Target

Offset

MassAllocation Journal Example Redistribute monthly rent expense to departments based on the amount of space each occupies Rent Expense for Each Department = Total Rent Expense X Area Used by Department / Total Area

In January 2002, the organization spends 10,000 dollars for rent Dr. Rent expense Cr. Rents payable

10,000 functional dollars 10,000 functional dollars

MassAllocation Journal Example Allocate rent to three departments: Human Resources

45% of total floor space

Research

30% of total floor space

Finance

25% of total floor space

The rent expense is redistributed by the following MassAllocation Journal entry: Dr. Human Resources

4,500 functional dollars

Dr. Research rent

3,000 functional dollars

Dr. Finance rent expense

2,500 functional dollars

Cr. Total Rent Expense

10,000 functional dollars

Rent Expense Example Segment Value

Description

Department 000

Corporate

Department 101, 102, & 103

Human Resources, Research, and Finance

Department 999

Parent of 101, 102, and 103

Natural Account s: 5740 SQFT

Total Rent Expense Department Square Footage

Generating Mass Allocation Journals ●

Generate MassAllocations to create unposted journal batches based on your validated MassAllocation formulas –

●

●

The generated journal batch contains one entry for each allocation formula in the batch

Use MassAllocation journals to reverse existing balances, post new allocation amounts, or generate journals that increment the existing balances to match the current allocation amount Generate MassAllocation journal batches for any range of open or future enterable periods

Q&A

Advanced Security

R12 Oracle General Ledger Management Fundamentals

Data Access Security for Legal Entities Data Access Setsand Ledgers Provide read-only and/or write access to data by ledger ●

or balancing segment values (BSVs) – ● ●

Full Ledger Access

Access to all data in a ledger Specific BSV Access –

Access to only some of the BSVs in a ledger

Data Access Security for Legal Entities Access Security for Multi-Ledger Processing and Ledgers • Generate recurring journals for a subset of BSVs for multiple ledgers in a ledger set

Access Security for Cross-Ledger Operations • Run a report to aggregate data across a subset of BSVs across multiple ledgers in a ledger set

Data Access Security for Legal Entities Data Access Setsand – Journals Example Ledgers ●

Creating a Journal Batch –

●

You can create a journal batch for the ledger and/or BSVs for which you have write access to

Viewing and Modifying a Journal Batch – –

You can view journal batches for which you have read-only or write access to the ledger and/or BSV You can modify journal batches only if you have write access to all ledgers and/or BSVs that are used in the batch

Data Access Security for Legal Entities Access to Full Ledger and Ledgers Access Level Ledger Legal Entities (BSVs)

Actions: Journals Balances Reports

Read-Only to Full Ledger

US Corporate Ledger ($)

US East (01)

• View Journals • View Balances • View Reports

US West (02)

US South (03)

Data Access Security for Legal Entities Access to BSVs and Ledgers Access Level Ledger Legal Entities (BSVs)

Read-Only

Read/Write

US Corporate Ledger ($)

US East (01)

US West (02)

US South (03)

Actions: Journals Balances Reports

• View Journals • View Balances • View Reports

• View, Create, Post Journals • View and Update Balances • View and Run Reports

Data Access Security for Legal Entities Access to Multiple Ledgers and Ledgers Read-Write to Parts of Access Level Multiple Ledgers

Ledger

Italy Statutory

EMEA Corporate Legal Entities (BSVs)

Actions: Journals Balances Reports

UK (11)

Italy (12)

Italy (12)

• View, Create and Post Journals • View and Update Balances • View and Run Reports

Q&A

Financial Budgeting

R12 Oracle General Ledger Management Fundamentals

What Is an Oracle Budget? An Oracle Budget can be: • Set up to calculate in the same way that actuals are calculated. • Translated to create comparisons between budget versus actual reports in reporting currencies.

Available Budget Methods

Oracle General Ledger Budget Wizard

Oracle Enterprise Planning and Budgeting

Non Oracle Systems

Anatomy of a Budget—Overview A budget consists of periods, accounts, and amounts.

Name: FY96PLAN

Jan-1994 to Dec-1994

Periods Accounts

CC100 CC200

….. …..

$3000 $1500

Amounts

Budget Accounting Cycle Step Step 1: 1: Define Define budgets budgets and and budget budget organizations. organizations. Step Step 2: 2: Enter Enter budget budget amounts. amounts. Step Step 3: 3: Review Review and and correct correct budgets. budgets. Step Step 4: 4: Freeze Freeze budgets. budgets. Step Step 5: 5: Report Report on on budgets. budgets.

Creating a Budget Amounts are entered into a combination of:

Budget -> Periods 01

200

5800

01

Organization -> Accounts

200 01

6300 200

7340

Budget Definition Steps Step 1: Plan budget structure. Step 2: Create budgets and hierarchies. Step 3: Set up budget organizations.

Q&A

Multi-Currency

R12 Oracle General Ledger Management Fundamentals

Overview of Multi-Currency

Pounds

Yen

Dollar

Euro

Foreign Currency Concepts There are three key concepts in Oracle General Ledger that pertain to foreign currency:

Conversion

Revaluation

Translation

Integrating with Subledgers

Foreign currency obligation is entered in Oracle Payables

Foreign currency obligation is paid in Oracle Payables

Payables journal entry is recorded in General Ledger

Realized foreign currency gain or loss is calculated

Foreign currency is revalued and the unrealized gain or lost is recorded

Payables journal entry is recorded in General Ledger

Reporting Currencies Business Reasons ●

●

●

Useful for consolidation reporting and analysis No need to physically move balances to create views of consolidation data Beneficial for parent consolidation entities that share the same chart of accounts and calendar with their subsidiaries

Benefits ● ●

●

Tighter link to ledgers! For accounting and reporting in another currency (in addition to the ledger's primary currency) Can be used with Primary or Secondary ledgers

Defining Currencies Use the Currencies window to define and enable or disable currencies

Conversion Overview Oracle General Ledger converts journal amounts entered in a foreign currency to functional currency equivalents using daily conversion rates

Conversion Yen

Foreign currency

Dollar

Functional currency

Conversion Example Entered Journal Entry Lines

DR. Accounts Receivable………………….10,000 Euro CR.

Revenue…………………………………………10,000 Euro Foreign currency

CONVERT 1 Euro = .8 US Dollars DR. Accounts Receivable………………….… 8,000 US$ CR.

Revenue……………………………………….….. 8,000 US$ Functional currency

Defining Conversion Rate Types

Foreign Currency Journals

Rate Types: –Spot –Corporate –User –EMU Fixed –User Defined

Functional Currency Journals

Entering Daily Rates ● ●

Rates are Shared Across Ledgers Loading Daily Rates Automatically

5-1-97 JPY/US SPOT .7155 5-1-97 JPY/CAD CORP .0112 Daily Rates

Revaluation Overview Revalue account balances to reflect the change in the foreign currency rate from the date a transaction is entered and the reporting date

Original U.S. Receivable 1000 Euro 550 U.S. Dollars

Paris

Revalued U.S. Receivable 1000 Euro 600 U.S. Dollars USD Unrealized Gain 50 U.S. Dollars

New York

Revaluation Process Foreign currencies

Functional currency Conversion at the time of the foreign currency transaction

Foreign currencies

Functional currency Revaluation at the end of the accounting period

Running Revaluation Revalue Foreign Currency Balances Post to Unrealized Gain/Loss Account Reverse Revaluation Journals

Is the foreign Currency Receivable Still Unpaid?

Yes

No

Collect Foreign Currency Receivable

Post to Realized Gain/Loss Account

Revaluation Example Entered Journal Entry Lines DR. Accounts Receivable………………….10,000 Euro CR.

Revenue…………………………………………10,000 Euro

Convert 1 Euro = .8 US Dollars DR. Accounts Receivable………………….… 8,000 US$ CR. Revenue……………………………………….….. 8,000 US$

REVALUE 1 Euro = .81 US Dollars DR. Accounts Receivable………………….… 100 US$ CR. Unrealized Gain…………………………………….. 100 US$

Translation Overview Foreign currency translation is a process that lets you restate your functional currency account balances into a reporting currency Functional Balance Sheet

Functional currency

Assets 100,000

Liabilities 60,000

Period end Rate = 0.75

Owner's Equity Period end Rate = 0.75

Foreign currency

40,000 Foreign Balance Sheet

Assets 75,000

Liabilities 45,000

Historical Rate = 0.70 Owner's Equity 28,000

Q&A

Consolidations

R12 Oracle General Ledger Management Fundamentals

Overview of Consolidations With Oracle General Ledger, you can consolidate any number of subsidiaries that use different ledgers, even those with different charts of accounts, currencies, and calendars

Subsidiary 1

Subsidiary 2

Subsidiary 3

Run Consolidation Parent

Consolidation Tools You can use the method that best suits your needs to consolidate financial information. ● ●

Financial Statement Generator (FSG) Global Consolidation System (GCS)

GCS

FSG

Consolidating Multiple Companies Sharing a Single Ledger Parent company

Structure: Calendar: Currency:

Co - CC - Acct Monthly USD

Use FSG to consolidate data

Subsidiary 1 Co-CC-Acct Monthly USD

Subsidiary 2 Co-CC-Acct Monthly USD

Subsidiary 3 Co-CC-Acct Monthly USD

Use FSG to consolidate subsidiaries that share the same ledger

Consolidating Multiple Companies with Multiple Ledgers Parent company

Structure: Calendar: Currency:

Co - CC - Acct - Prd Monthly USD

Use GCS to map and consolidate

Subsidiary 1 Co-CC-Acct Quarterly USD

Subsidiary 2 Co-Acct-Prd Monthly Euro

Subsidiary 3 Co-Acct-CC-Prd Weekly AUD

Global Consolidation System (GCS) Features and Benefits Global Consolidation System provides: ●

●

●

●

●

A workbench to view the consolidation status of your subsidiaries Sophisticated consolidation mapping rules to map accounts and specify transfer rules from the subsidiary to the parent A color-coded consolidation monitor that guides you through the consolidation steps A Consolidation Hierarchy Viewer to graphically display your consolidation structure The Interface Data Transformer makes importing data from external feeder systems easier

Global Consolidation System (GCS) Features and Benefits Global Consolidation System provides: (continued) Automatic generation of eliminating entries ● ●

● ●

●

Multilevel drilldown capabilities to subsidiary balances and subledgers Interface Data Transformer (IDT) Powerful report publishing capabilities using FSG and Web ADI Integrated multidimensional analysis using Oracle Enterprise Planning and Budgeting

Consolidation Workbench The Consolidation Workbench and State Controller provide a central point of control for consolidating an unlimited number of subsidiaries to your parent ledger

Access all consolidation steps

Monitor consolidation process

View mappings and hierarchies

Q&A

Financial Reporting

R12 Oracle General Ledger Management Fundamentals

Financial Statement Generator Features Financial Statement Generator (FSG) is a powerful report building tool for Oracle General Ledger

Balance Sheet

Income Statement

Budget vs. Actuals

Defining Row Sets Define the format and content of rows in financial reports

Row Set A

Sales Returns Net Sales

Income Statement Company 1 PTD 3,000 1,000 2,000

YTD 6,200 1,000 5,200

Income Statement Division 10

Row Set A

Sales Returns Net Sales

THIS YR 300 100 200

LAST YR 620 100 520

Define Column Sets Define the format and content of columns in financial reports Income Statement Company 1

Column Set A Sales Returns Net Sales

PTD 3,000 1,000 2,000

YTD 6,200 1,000 5,200

Balance Sheet Company 1

Column Set B Cash Investments Receivables

THIS YR 100 600 980

LAST YR 200 400 700

When to Use FSG Reports Use Financial Statement Generator Reports to do the following: ● ●

● ●

Create custom financial statements Create consolidated reports and perform consolidation for companies sharing the same ledger Report on translated and foreign currency amounts Report on budget vs. actual and different amount types such as PTD, QTD, and YTD

Using Ledger Sets in FSG Reports ●

● ●

Ledger Sets are groupings of ledgers with the same chart of accounts and calendar/period type combination You can report on one or all ledgers in a Ledger Set Group the Adjustment Only Secondary Ledger with its Primary Ledger in a Ledger Set for financial reporting

Statutory Ledger Set Primary Ledger USD

Adjustment Only Secondary Ledger USD

For adjustments

Q&A

Oracle Advanced Global Intercompany System

R12 Oracle General Ledger Management Fundamentals

Intercompany Transactions ●

Intercompany transactions are transactions between two or more legal entities in an enterprise

Vision Operations (USA)

Vision France

Vision Germany

Intercompany Transaction

R12 Oracle Accounts Payable Fundamentals

Procure to Pay Lifecycle Requisitions Catalog Content Management

Purchase Orders Ordering

RFQs/ Quotations

Receiving

Sourcing Analysis

Supplier management

Invoice/ Payment

Reporting Supplier Performance

Oracle Procure to Pay Process Demand

Purchase requisition

Source

Request for quote (RFQ)

Supplier

Order

Receive

Enter

Purchase order

Receipts

Invoice

Quotation

Pay

Requisitions Demand

Inventory

WIP

MRP

Order Mgmt

Other Systems

Import/reschedule requisitions Internal Order Mgmt sales order Approval Manually create

Requisition Requisition pool

PO

Suppliers

Purchase requisition

Request for quote (RFQ)

Quotation

Supplier

Purchase order

Receipts

Returns

Payment

Purchase Orders Approve Manually create

Automatically create PO

Maintain documents

Accept

Receive against PO

Revise

Requisition pool

Control

Match invoices in Payables

Receiving

Shipment Supplier

Transfer

Receive

Deliver

Order Entry

Inventory

Internal shipment

Inspect

Inventory

Shop floor

Expense

Invoicing

Receive invoices

If appropriate, match invoice to purchase order or receipt

PO

Invoice

Import/Enter invoice Enter basic information Enter detailed information

Maintain invoices

File invoices

Payment

Select validated invoice Pay invoice

Record manual payment Create quick payment outside Oracle Create computergenerated payment

Run Pay run

Create single payments

Modify payments: • Remove/add invoices • Modify payment details Format payments: • Print checks • Load EFT data Validate payments: • Confirm checks • Update invoice • Payment history

Procure to Pay Lifecycle Catalog Content Management

Requisitions Purchase Orders Ordering

RFQs/ Quotations

Sourcing Analysis

Supplier management

Receiving Invoice/ Payment

Reporting Supplier Performance

Suppliers Page

– Search – Company Profile • • • • • • • •

Organization Tax Details Address Book Contact Directory Business Classification Products and Services Banking Details Surveys

– Quick Update – To Do List – Terms and Control • • • • • •

Accounting Tax and Reporting Purchasing Receiving Payment Details Invoice Management

Supplier – Organization

– Parent Supplier Name • Must already be defined to select Parent

– Number • Parent supplier number

– Customer Number Your Company

Cust. #9924

Child

Your Supplier

Child

Supplier – Tax Details

– – – – –

Rounding Rule Set Invoice Values as Tax Inclusive Allow Withholding Tax Withholding Tax Group Tax Registrations

Supplier – Address Book and Contact Directory

Supplier Tokyo

Purchasing site RFQ Only site Sue Taylor, Sales Mgr

Bill Wilson, Sales Quotes

Paris

Purchasing site

Liz Miller, Sales Rep

New York

Payment site Primary Pay site Aaron Carr, AR Mgr

Supplier – Accounting

Supplier accounting values default to all new supplier sites you enter for the supplier. Supplier site accounting values default to all new invoices for the supplier site. You can override any accounting defaults during supplier site entry and invoice entry.

Supplier – Tax and Reporting

– – – – –

Allow Tax Applicability Set for Self Assessment/Reverse Charge Allow Offset Taxes Tax Classification Code Income Tax Reporting Site

Supplier – Purchasing – – – – – – – – – – – – –

All New Orders Ship-To Location Bill-To Location Ship Via Pay On Receipt Alternate Pay Site Invoice Summary Level Create Debit Memo from RTS Transaction * Gapless Invoice Numbering Free-on-Board (FOB) Freight Terms Transportation Arranged Poor Quality Country of Origin

Supplier – Receiving

– – – – – – – – –

Enforce Ship-To Location Receipt Routing Match Approval Level Quantity Received Tolerance Quantity Received Exception Days Early/Late Receipt Allowed Receipt Date Exception Allow Substitute Receipts Allow Unordered Receipts

Supplier Information – Payment Details

• Payment Method

Check Electronic Outsourced Check Wire

1 to 1 Invoice

• Pay Each Document Alone Check

Supplier – Invoice Management

– Invoice Details – Hold from Payment

– Payment Terms Priority Terms Pay Date Basis Pay Group Always Take Discount Exclude Freight From Discount • Create Interest Invoice • • • • • •

Supplier Site Settings Payment Terms

Pay Date Basis

Ship-To Location

Tokyo

Net 30

Due

Tokyo Office

Paris

2/10, Net 30

Discount

Headquarters

Net 30

Due

Headquarters

ABC Corp. Sites

New York

Supplier Information – Payment Details

• Payment Method

Check Electronic Outsourced Check Wire

1 to 1 Invoice

• Pay Each Document Alone Check

Supplier – Invoice Management

– Invoice Details – Hold from Payment

– Payment Terms Priority Terms Pay Date Basis Pay Group Always Take Discount Exclude Freight From Discount • Create Interest Invoice • • • • • •

Supplier Site Settings Payment Terms

Pay Date Basis

Ship-To Location

Tokyo

Net 30

Due

Tokyo Office

Paris

2/10, Net 30

Discount

Headquarters

Net 30

Due

Headquarters

ABC Corp. Sites

New York

Merging Suppliers

Run supplier audit report

ABC Identify duplicate Corporation suppliers

ABC Corp

Merge suppliers

Maintain audit trail

Review merge results

ABC Corporation

Data Example – Supplier Merge

Oracle Corporation Target/Correct Supplier

Oracle Corp Incorrect Supplier

Site Names CA-REDWOOD IL-CHICAGO VA-RESTON FL-ORLANDO

Site Names CA-REDWOOD FL-ORLANDO

merge copy

Merging Suppliers

After you have merged suppliers, Payables automatically prints the following reports: – Purchase Order Header Updates Report – Supplier Merge Report

Financials Options

Supplier-Purchasing RFQ Only Site Ship-To Location Bill-To Location Inventory Organization Ship VIA FOB Freight Terms

Invoices

Procure to Pay Lifecycle Requisitions Catalog Content Management

Purchase Orders Ordering

RFQs/ Quotations

Sourcing Analysis

Supplier management

Receiving Invoice/ Payment

Reporting Supplier Performance

Overview of Invoices Enter supplier

Import/Enter invoice

Validate invoice

Pay invoice Match to PO Create PO

Enter requisition

Create accounting entries in Subledger Accounting

Invoice Types

– – – – –

Standard Credit Memo Debit Memo Mixed Prepayment

– – – – –

Expense Report Withholding Tax Interest Retainage Release Transportation Invoices

Entering Invoices Overview

You can manually enter invoices into Payables using: – Invoice Workbench – Quick Invoices window

Creating Invoices Automatically

Your system can create the following types of invoices: – Recurring Invoices – RTS Invoices – Retroactive Price Adjustment Invoices

Adjustment and PO Price Adjustment Invoices

You can use the Invoice Workbench to view and query by example Adjustment and PO Adjustment invoices. – You cannot enter or update these invoices. – You cannot match these invoices to receipts and purchase orders.

Invoice Import You can import invoices or invoice information to create invoices in Payables. – Oracle Internet Expenses expense reports – Payables expense reports – Credit Card invoices – EDI invoices – XML Invoices – Invoices from external systems – Oracle Property Manager invoices – Oracle Assets lease payments

Invoice Structure • Type • Supplier • Number

Invoice Header

Invoice Lines

• Amount • Pay Date

Scheduled Payments

• Currency • Terms • Type • Amount • Accounting • Product Integration

Distributions

• Type • Amount • Charge Acct.

Invoice Workbench

Invoices Window – Invoice Header – General – Lines – Holds – View Payments – Scheduled Payments – View Prepayment Applications

Other Features – Actions – Calculate Tax – Tax Details – Corrections – Quick Match – Match – Distributions

Entering Basic Invoices in the Invoice Workbench

Invoice Header

Invoice Lines

Scheduled Payments

Distributions

Entering Invoice Header Information

– – – – – – – – – –

Invoice Type Trading Partner Supplier Number Supplier Site Invoice Date Invoice Number Amount Description Payment Terms Payment Method

Invoice Header

Invoice Lines

Scheduled Payments

Distributions

Entering Invoice Line Information – Line Types – Type • • • •

Invoice Header

Item Freight Miscellaneous Tax

Invoice Lines

– Amount Scheduled Payments

Distributions

Entering Invoice Line Information – Other Attributes – – – – – – –

GL Date Account Track as Asset Description Status Accounted Project/Task/ Expenditure

Invoice Header

Invoice Lines

Scheduled Payments

Distributions

Entering Distributions

Manual

Distribution Set

Matching Allocation

Invoice Validation

Distribution Sets

Use a Distribution Set to automatically enter distributions for an invoice when you are not matching it to a purchase order. You can create: – Full Distribution Sets – Skeleton Distribution Sets

Entering Distribution Types

– Type: • • • • • •

Invoice Header

Item Freight Miscellaneous Tax Withholding Prepayment

– Amount

Invoice Lines

Scheduled Payments

Distributions

Entering Freight Distributions

There are three ways to create freight distributions: – Enable the Automatically Create Freight Distribution Payables Option – Allocate freight across invoice distributions – Manually enter freight distributions

Tax Distributions

Tax distributions are automatically created when you click Calculate Tax or when you validate the invoice. Withholding Tax distributions are automatically created when you validate the invoice.

Allocating Freight and Miscellaneous Distributions

Item

Miscellaneous

Freight

Tax Distributions

Tax distributions are automatically created when you click Calculate Tax or when you validate the invoice. Withholding Tax distributions are automatically created when you validate the invoice.

Allocating Freight and Miscellaneous Distributions

Item

Miscellaneous

Freight

Creating Distributions by Allocation in the Invoice Workbench You can use the Charge Allocations window to automatically create freight or miscellaneous distributions.

Allocation Restrictions

– – – – –

Cancelled invoices Paid invoices Applied prepayments Items matched to multiple PO distributions Accounted allocations

Scheduled Payments

– – – –

Scheduled Payment Holds Due Date Gross Amount Priority

Invoice Header

Invoice Lines

Scheduled Payments

Distributions

Entering Purchase Order and Receipt Matched Invoices Match invoices to: – Purchase order – Purchase order shipments – Purchase order distributions – Purchase order receipts and receipt lines

Match Approval Level Options

Invoice

PO

Quantity Billed

Quantity Ordered

Unit Price

PO Line Price

3-Way

Quantity Billed

Quantity Received

4-Way

Quantity Billed

Quantity Accepted

2-Way

Matching to a Purchase Order Header PO information

Supplier information Detail

Item line 1 Shipment line 1 Distribution line 1 Distribution line 2 Shipment line 2 Distribution line 1 Item line 2 Shipment line 1 Distribution line 1

Matching to Purchase Order Shipments

10 Items on Scheduled Shipment, to be shipped to department 110

6 Delivered 6 Items Actually Shipped

110 6 Items Charged

Matching to Purchase Order Shipments

10 Items on Scheduled Shipment, to be shipped to department 110

6 Delivered 6 Items Actually Shipped

110 6 Items Charged

Matching to Purchase Order Distributions

10 Items on Scheduled Shipment • 7 to be sent to Dept 110 • 3 to be sent to Dept 120 0 Delivered

6 Delivered 6 Items Actually Shipped

120 0 Items Charged

110 6 Items Charged

Matching to Receipts and Receipt Lines

10 Items on Scheduled Shipment • 10 to be shipped to Dept 110

Search for PO Receipts

Match Details Recorded on PO

Must have Receipt to Match Invoice

PO

Matching to Purchase Orders or Receipts in the Invoice Workbench To match an invoice to a purchase order or receipt: – Use the Match to Purchase Order/Receipts window – Enter the PO number in the invoice header – Enter the PO Distribution, PO Shipment, or Receipt information in the invoice line – Use Quick Match

Define Purchase Order Matching Tolerances (Optional) – – – – – – – –

Quantity ordered % Maximum quantity ordered Quantity received % Maximum quantity received Price % Exchange rate amount Shipment amount Total amount

Invoice Validation Process Enter or import invoices Receive invoices electronically or in the mail Validate invoice

Create subledger accounting AP 100,000 60,000 10,000 30,000

Optionally match to PO or receipt

View invoice

Pay invoice

Levels of Invoice Validation

– System level validation – Batch level validation – Invoice level (online) validation

Validate invoice

Reports

Batch Control Report by Batch Name Batch Control Report by Entered By Credit Memo Matching Report Invoice Aging Report Invoice Audit Listing by Voucher Number Invoice Audit Listing

Payments

Procure to Pay Lifecycle Requisitions Catalog Content Management

Purchase Orders Ordering

RFQs/ Quotations

Receiving

Sourcing Analysis

Supplier management

Invoice/ Payment

Reporting Supplier Performance

Invoice Payment Overview Enter supplier

Validate invoice

Enter invoice

Pay invoices A/P 100,000 60,000 10,000 30,000 Transfer information to General Ledger

Create accounting entries

Reports

Invoice Audit Report Invoice History Report Invoice on Hold Report Invoice Register Matching Detail Report Matching Hold Detail Report

Reports

Recurring Invoices Report Matching Hold Agent Notice Print Invoice Notice Supplier Paid Invoice History Matching Holds by Buyer

Reports

Receiving Hold Requestor Notice Distribution Set Listing Key Indicators Report

Expense Reports and Credit Cards

Objectives

After completing this module you should be able to do the following: – Describe the period closing process in Payables and Purchasing – Reconcile accounts payable transactions for the period – Identify key programs and reports – Understand setup options – Understand additional implementation considerations

Key Processes Create Accounting Final Subledger Accounting

Payables Create Accounting Draft

Transfer to GL

Distributions

Accounting Details

GL Interface Import to GL Post in GL

Review/Correct Accounting

Oracle Assets, Projects, Procurement, Inventory

General Ledger

Prepare for Period Close

– – – – – –

Complete all receipt processing Confirm or cancel all pending pay runs Update matured bills payable Import invoices Export and process expense reports Interface adjustments to supplier invoices and expense reports – Reconcile bank statements

Run Validation/Review and Resolve Holds

Run the Invoice Validation Process

Resolve Invoice Holds

Rerun Validation if Necessary

Create Subledger Accounting

Make a Payment

Enter an Invoice

Create Accounting

View Accounting

Create Accounting Program

The Create Accounting program processes eligible accounting events to create subledger journal entries. The program applies the application accounting definitions that are created in the Accounting Methods Builder (AMB). The following report is generated by this program: – Oracle Subledger Accounting Program Report

Transfer and Review

Run Transfer Journals to General Ledger Review Transfer Results

Review Account Analysis Report

Transfer Journal Entries to GL Program

The Transfer Journal Entries to GL program enables you to transfer any eligible journal entries to General Ledger, including those from previous batch runs that have not yet been transferred to General Ledger. The following report is generated by this program: – Transfer to Journal Entries to GL Report

Post Journal Entries in GL

Post Journals in GL Create Remaining Mass Additions

Accounting for Mass Additions – Periodic Accrual (Period End) Expense AP Accrual 01-000-2221

Asset Cost

01-000-1560

AP Liability

01-000-2210

Expense/ Clearing 01-000-1570

1 2 200

3

200

200

200 200 200 -0-

200

5

200 200

200

4

-0-

6

Accounting for Payments with Cash in Transit (Cash Clearing) Cash

Cash in Transit

01-000-1110

01-000-1150

AP Liability

01-000-2210

400 400 400

400

Expense/ Clearing/ Accrual 01-000-1570

400

2

400

3

400

-0-

1

-0-

400

Accounting for Payments without Cash in Transit (Cash Clearing) Cash

Cash in Transit

01-000-1110

01-000-1150

AP Liability

01-000-2210

400 400

400

Expense/ Clearing/ Accrual 01-000-1570

400

2

400

-0-

1

400

Reports

Accounts Payable Trial Balance Accrual Rebuild Reconciliation Report Accrual Write-Off Report Matched and Modified Receipts Report Account Analysis Report

Reports

Payables Posted Invoice Register Payables Posted Payment Register Receipt Accruals - Period End Receiving Account Distribution Report

Reports

Unaccounted Transactions Report Uninvoiced Receipts Report

Expense Reports

An Expense Report is an invoice representing an amount due to an employee for business-related expenses.

Expense Reporting Process Employee creates expense report

Payables

Approved: Accounts Creates payment; Payables Manager notifies employee department approves report approves report

Internet Expenses Rejected: Adjusted: Workflow notifies Creates payment; employee notifies employee

1099 Reporting

1099 Reporting Overview

In the United States, you must report to the Internal Revenue Service certain types of payments you make to 1099 reportable suppliers. In the supplier window, you can designate suppliers as federally reportable.

Transaction Taxes in Payables

Overview of Transaction Taxes in Payables

Payables leverages E-Business tax to setup, calculate, and manage transaction taxes such as: – Sales – VAT – Excise – Customs Duty – Environmental – Offset – Recoverable Tax

Overview of Tax Calculation on Invoices Recalculate Taxes

Enter Invoice

Click Calculate Tax

View Tax Lines and Distributions

Change Tax Driver

Validate Invoice

Calculates Tax Calculates Tax E-Business Tax

Working with Transaction Taxes in Payables

Enter manual tax lines

Update tax lines

Exclude tax from discounts

Employ taxes with deferred recoverability

Self-assess taxes

Exclude Tax from Discounts

To exclude tax from discounts, enable the Exclude Tax From Discount Calculation Payables Option

Invoice Amount -Total Tax Amount Discountable Invoice Amount

Self-Assessed Taxes

Enable the following option in the Party Tax Profile: – Set for Self Assessment/Reverse Charge option You can enable this option at the following levels: – Regime – Regime, Tax – Regime, Tax, Tax Jurisdiction

Taxes with Deferred Recoverability Level

Allow Tax Recovery

Default Recovery Settlement

Regime

Deferred

Tax

Deferred

Tax Status

Deferred

Tax Rate

Deferred

Tax Accounts

•Tax Expense •Recoverable Tax •Interim Tax (used for Accrual Based accounting only)

Tax Variances

– – – –

Tax Exchange Rate Variance (TERV) Tax Invoice Price Tax Rate Variance (TIPV) Tax Rate Variance (TRV) Tax Quantity Variance (TQV)