R12 Financials New Features

Within all applications R12 has replaced many forms with SWAN forms.  These new forms include new fonts, colors, update to the field order, placement, and even new screen flows in some cases. The disadvantage to this is that data entry will take users time to get comfortable with.  Navigation within the form, using the tab key, will take longer, due to default screen flow.  Many of these new forms are also missing the help windows function.

Multiple new XML reports are introduced.  Many of these XML reports allow the drill down function to the application data. 

                The Business Intelligence Publisher tool was been used to rewrite some of the existing reports. 

SLA

1.       Sub Ledger Accounting (SLA).  All process, from an Oracle sub-ledger will go through the SLA.  This is a new R12 tool, accounting engine and repository.  It is a separate product in itself   Within SLA you can change the accounting prior to the data posting in GL.  You can configure the SLA to allow for multiple representations, of the same data, based on the rules you setup.  This contains your granular level of detail allowing you to post in summary within GL.  SLA should be the source of truth for sub ledgers.

** Web ADI journals do not go through the SLA engine.

2.       SLAM (Subledger Accounting Method) are user definable accounting methods.  This determines the accounting rules and standards to apply when generating entries for the ledger.

MOAC

1.       Multi Org Access Control (MOAC) – This can be used within Oracle sub ledgers.  This will allow user’s access to multiple operating units within a single responsibility.  Users will be able to access, process and report on data, for different operating units, without having to change responsibilities. 

Although this is possible, I believe we would want to ensure only ‘Super Users’ have this access, unless read only is allowed.  This would eliminate the possibility of posting to the wrong operating unit. 

GL

1.       There is a new ‘Management’ flexfield qualifier introduced in R12, for your COA. You can use this to set Read/Write access permissions while defining data access sets.   Parent groups can be used when setting access permissions, for this new qualifier.

2.       R12 allows the use of an alternate account setup for disabled accounts.   This will enable the allocation to a new account when one is disables, during the journal import process. 

3.       Ledgers are replacing SOB’s in R12. 

4.       Ledger sets are a group of ledgers sharing the same COA and calendar.  By setting up ledger sets you can open and close GL periods for multiple ledgers.  You can also run the FSG reports for all ledgers within the set.  This will run a report for each ledger you have within the set.

**Opening and closing of subledgers has not changed.  MOAC can be used to eliminate switching responsibilities, but, they must be opened individually.

5.       Accounting setup manager is a new R12 feature which streamlines the setup and implementation of financial applications. 

6.       Data access sets allow you to limit access to data by legal entity, ledger, balancing segment or management segment.  Data sets allow you to set read/write access.  You would use data set access to replace security rules.  The GL profile used at the responsibility is changed to a data access profile.

7.       You will still need to use the translation function to see data posted in currency other then the reporting currency.  This can be run at from a ledger set.

8.       You can set up secondary ledgers to account for data in a different currency, COA, accounting method or calendar.

9.       You can copy journal batches and change name or period within the new batch.

10.   Chart of account mapping has replaced the 11i consolidation mapping feature.  You can use this to map from one COA to another.

11.   You can setup control accounts which can be used by sub ledgers only.  Marking an account as a control account restricts manually posting, to the account, within GL.  You can select the journal source (sub ledger) to allow posting from.

12.   Definition access sets allow you to secure setup definitions, such as FSG reports or calendars. 

AP

1.       AP suppliers will now be housed within the TCA architect.  This allows you to mark a supplier an AR customer.

2.       Banks and bank branches are represented in the TCA architect.  Setup will be associated with a legal entity, in R12, vs. an operating unit.  They can be used by any operating unit.  This allows banks to be associated with a supplier, employee or customer.

3.       AP tables have been changed.   The majority of tables have been put within the XLA data structure.

4.       Oracle has introduced a new invoice distribution level.  The invoice creation will have 3 levels.  Invoice header, invoice line and invoice distribution.  Although many companies may use the distribution level, at 5.       ‘PO Default’ invoice type has been removed.

6.       Extensive library of payment formats are offered.  We may be able to remove the customization on the EFT file.

7.       Positive Pay program released.  We may be able to remove this customization.

8.       A Pay run is equivalent to the concept of a payment batch.

9.       Credit Card Encryption is an advanced security feature with AP.

10.   Dashboard for Payment Run processes.  This shows all payment run process status.  

11.   Enhanced Payment Method controls introduced. 

12.   Invoice and Payment entry, within application, have completely changed. 

13.   Enhanced Withholding tax calculation for Brazil.

14.   You can submit a request for payment, from AR.  A request for payment can come to Payables without requiring a supplier or standard invoice.  I think our users will like this new feature.

E-business Tax

1.       New Product in R12 for tax setup.  This setup can then be shared by all applications.  It will replace the transaction tax, in 11i, for Payables and Receivables.  It also eliminates the need for Brazil Payables tax solution, in 11i.

It was advised that the company’s tax reporting user take a R12 class.  Current setups are migrated into R12, but, setup changes can be complicated. 

AR

1.        Customer Standard User interface redesigned as HTML-based.

2.       Balance Forwarding:  R12 enhanced feature for consolidating transactions.  This replaces the 11i process we currently use.  Transaction grouping feature has been added to the AR customer level.  You can group by account or account sites.   

There is one important change made to this process.  The Oracle delivered consolidation now will change the AR due date, based on the invoice calculated due date, at the process time.  This would have to be discussed with the users.  This change would affect the aging on transactions within AR.

Another change to bring to everyone’s attentions is the payment term.  Payment terms are currently set for transactions when we import or create data.  With the new consolidation process, any transaction without activity will be set to the payment term at time of consolidation. This ensures the payment term is accurate for the customer.

3.       Payment Method is now called Receipt Method.

4.       Advanced collections replaced the existing workbench.  This allows users to track the customer collection in one location.  Within this process is the dunning letters.  In R12 dunning letters are more robust and take advantage of the XML reporting capabilities.

5.       AP/AR Netting can automatically compare Payables to Receivables and credit the appropriate transaction in each area to net supplier invoices and customer invoices.

6.       R12 enhanced the event based revenue management feature to automatically time revenue recognition, in accordance with the removal of revenue contingencies, as required by US GAAP and IAS.  If a customer is not ‘credit worthy, revenue will not be recognized until payment is received from the customer.

7.       Transaction line level cash application is available in R12.  This may be helpful with Brazil for the automatic receipts creation.

CE

1.       Remittance Banks are now owned by Cash Management rather than payables.

2.       All internal bank accounts will be migrated into the centralized bank account model, with the upgrade.

3.       Bank accounts are associated with bank branches but reside within the CE application.

4.       You are able to create bank account transfers.  The settlement is done through the payments application while the accounting is done through SLA.

5.       Transaction codes can be linked to multiple sources, in R12.

6.       Reconciliation can be done across operating units.

7.       Cash leveling or cash pooling is a technique aimed at optimizing the balances of internal bank accounts held by several banks.

8.       CE now validates IBAN and BIC at the time of recording bank account details.