r12 oracle financials functional migration fundamentals...

R12 Oracle Financials Functional Migration Fundamentals

Student Guide Volume 7

D49298GC10

Edition 1.0

July 2007

D51849

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Copyright © 2007, Oracle. All rights reserved.

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Author

Richard Sears, Dee Fairbanks Simpson

Technical Contributors and Reviewers

David Barnacle, Melanie Featherstone, Wallace Gardipe, Theresa Hickman, Anant Iyer, Thierry

Javelle, Ruth Kukla, Robert Macisaac, Vic Mitchell, Christine Rudd, Kathryn Wohnoutka

This book was published using: oracletutor

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Copyright © Oracle, 2007. All rights reserved.

R12 Oracle Financials Functional Migration Fundamentals Table of Contents i

Table of Contents

Oracle Financials Overview............................................................................................................................1-1

Oracle Financials Overview ..........................................................................................................................1-3

Objectives ......................................................................................................................................................1-4

Why R12?......................................................................................................................................................1-5

Architecture ...................................................................................................................................................1-6

Multi-Org Access Control (MOAC)..............................................................................................................1-8

Subledger Accounting ...................................................................................................................................1-9

Ledger............................................................................................................................................................1-11

Ledger Sets ....................................................................................................................................................1-12

Ledger Architecture.......................................................................................................................................1-13

Legal Organization ........................................................................................................................................1-14

Enhanced Legal Support................................................................................................................................1-15

Benefits of Legal Entities ..............................................................................................................................1-16

Oracle E-Business Tax ..................................................................................................................................1-17

Advanced Global Intercompany System .......................................................................................................1-18

Centralized Banking ......................................................................................................................................1-19

Bank Model Example ....................................................................................................................................1-20

Four Ways to Consolidate Information .........................................................................................................1-21

Multi-Dimensional Analysis & Reporting.....................................................................................................1-22

Financial Consolidation Hub .........................................................................................................................1-23

Data Management..........................................................................................................................................1-24

XML Publisher ..............................................................................................................................................1-25

New Standard Reports ...................................................................................................................................1-26

Other New Features .......................................................................................................................................1-27

Summary........................................................................................................................................................1-29

Multi-Org Access Control Overview..............................................................................................................2-1

Multi-Org Access Control Overview.............................................................................................................2-3

Objectives ......................................................................................................................................................2-4

Agenda...........................................................................................................................................................2-5

Multi-Org Access Control Description..........................................................................................................2-7

Multi-Org Access Control Benefits ..............................................................................................................2-9

Multi-Org Access Control Process Summary................................................................................................2-10

Multi-Org Access Control Setup ...................................................................................................................2-11

Multi-Org Access Control Setup – Create Operating Unit ............................................................................2-12

Multi-Org Access Control Setup – Define Security Profile ..........................................................................2-14

Multi-Org Access Control Setup – Run System List Maintenance ...............................................................2-15

Multi-Org Access Control Setup – Set Profile Options.................................................................................2-16

Implementation Considerations .....................................................................................................................2-17

Agenda...........................................................................................................................................................2-18

Multi-Org Preferences Description................................................................................................................2-19

Multi-Org Preferences Benefits .....................................................................................................................2-20

Multi-Org Preferences Process Summary.....................................................................................................2-21

Multi-Org Preferences Setup .........................................................................................................................2-22

Multi-Org Preferences Setup – Add to SubMenu..........................................................................................2-23

Multi-Org Preferences Setup – Set Preferences............................................................................................2-24

Agenda...........................................................................................................................................................2-25

Enhanced Multi-Org Reporting Description..................................................................................................2-26

Enhanced Multi-Org Reporting Benefits ......................................................................................................2-27

Enhanced Multi-Org Reporting Process ........................................................................................................2-28

Enhanced Multi-Org Reporting Process – Run Report.................................................................................2-29

Guided Demonstration 1 Overview: Using MOAC......................................................................................2-30

Guided Demonstration - Using MOAC .....................................................................................................2-31

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Summary........................................................................................................................................................2-38

Subledger Accounting Overview ....................................................................................................................3-1

Subledger Accounting Overview...................................................................................................................3-3

Objectives ......................................................................................................................................................3-4

Agenda...........................................................................................................................................................3-5

Subledger Accounting ...................................................................................................................................3-7

Subledger Accounting Description................................................................................................................3-8

Agenda...........................................................................................................................................................3-10

Business Benefits...........................................................................................................................................3-11

Business Benefits – Global Example.............................................................................................................3-12


Business Benefits - Auditability ....................................................................................................................3-15

Business Benefits – Transaction Example.....................................................................................................3-16


Business Benefits - Accounting Reconciliation.............................................................................................3-18

Agenda...........................................................................................................................................................3-19

Key Concepts.................................................................................................................................................3-20

Event Classes.................................................................................................................................................3-21

Events ............................................................................................................................................................3-22

Transaction Objects and Sources...................................................................................................................3-23

Agenda...........................................................................................................................................................3-24

Major Features...............................................................................................................................................3-25

Accounting Methods Builder.........................................................................................................................3-27

Online Accounting.........................................................................................................................................3-31

Inquiries.........................................................................................................................................................3-32

Offline Accounting ........................................................................................................................................3-34

Standard Reports ...........................................................................................................................................3-35

Agenda...........................................................................................................................................................3-36

Setup..............................................................................................................................................................3-37

Setup - Journal Line Type..............................................................................................................................3-38

Setup – Journal Line Type.............................................................................................................................3-39

Setup - Journal Line Type..............................................................................................................................3-40

Guided Demonstration 1 Overview: Defining Journal Line Types for Payables..........................................3-41

Guided Demonstration - Defining Journal Line Types in Payables...........................................................3-42

Practice 1 Overview: Defining Journal Line Types for Payables .................................................................3-44

Practice - Defining Journal Line Types for Payables ................................................................................3-45

Solution – Defining Journal Line Types for Payables ...............................................................................3-47

Setup - Account Derivation Rule...................................................................................................................3-52

Setup – Account Derivation Rule ..................................................................................................................3-53

Setup - Account Derivation Rule...................................................................................................................3-54

Guided Demonstration 2 Overview: Defining Account Derivation Rules for Payables...............................3-55

Guided Demonstration - Defining Account Derivation Rules for Payables ..............................................3-56

Practice 2 Overview: Defining Account Derivation Rules for Payables ......................................................3-58

Practice - Defining Account Derivation Rules for Payables......................................................................3-59

Solution – Defining Account Derivation Rules for Payables ....................................................................3-61

Setup – Journal Entry Description.................................................................................................................3-69

Setup – Journal Line Definition.....................................................................................................................3-70

Setup - Journal Line Definition .....................................................................................................................3-71

Guided Demonstration 3 Overview: Defining Journal Lines Definitions for Payables................................3-72

Guided Demonstration - Defining Journal Lines Definitions for Payables ...............................................3-73

Practice 3 Overview: Defining Journal Lines Definitions for Payables .......................................................3-74

Practice - Defining Journal Lines Definitions for Payables.......................................................................3-75

Solution – Defining Journal Lines Definitions for Payables .....................................................................3-76

Setup – Application Accounting Definition ..................................................................................................3-80

Setup - Application Accounting Definition ...................................................................................................3-81

Setup – Subledger Accounting Method .........................................................................................................3-82

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Setup - Subledger Accounting Method..........................................................................................................3-83

Ledger Setup and SLAM Assignment ...........................................................................................................3-84

Setup – Set Key Profile Options....................................................................................................................3-86

Agenda...........................................................................................................................................................3-87


Summary........................................................................................................................................................3-89

Oracle E-Business Tax Overview ...................................................................................................................4-1

Oracle E-Business Tax Overview..................................................................................................................4-3

Objectives ......................................................................................................................................................4-4

Agenda...........................................................................................................................................................4-5

What is Oracle E-Business Tax (eBTax) .......................................................................................................4-7

Agenda...........................................................................................................................................................4-8

Business Requirements Met by eBTax..........................................................................................................4-9

Business Needs Solutions ..............................................................................................................................4-11

Agenda...........................................................................................................................................................4-15

Key Concepts: Tax Authority........................................................................................................................4-16

Key Concepts: Tax Regime ...........................................................................................................................4-17

Key Concepts: Tax ........................................................................................................................................4-18

Key Concepts: Tax Jurisdiction.....................................................................................................................4-19

Agenda...........................................................................................................................................................4-20

Architecture Overview ..................................................................................................................................4-21

Agenda...........................................................................................................................................................4-22

Processing Taxes for Transactions ................................................................................................................4-23

Tax Determination Services Example ...........................................................................................................4-25

Agenda...........................................................................................................................................................4-29

User Interface ................................................................................................................................................4-30

Agenda...........................................................................................................................................................4-32

Upgraded and Redesigned Features...............................................................................................................4-33

Upgraded and Enhanced Features .................................................................................................................4-34

Tax Definition Hierarchy...............................................................................................................................4-35

Tax Configuration Ownership .......................................................................................................................4-37

Practice 1 Overview: Creating a Regime to Rate Tax Model.......................................................................4-38

Practice - Create a Regime to Rate Tax Model..........................................................................................4-39

Solution - Create a Regime to Rate Tax Model .........................................................................................4-45

Tax Defaulting Hierarchy..............................................................................................................................4-53

System Options for Tax.................................................................................................................................4-54

Tax Groups ....................................................................................................................................................4-55

Tax Jurisdiction Handling..............................................................................................................................4-56

Practice 2 Overview: Creating Tax Zones....................................................................................................4-58

Practice - Create Tax Zones.......................................................................................................................4-59

Solution – Create Tax Zones .....................................................................................................................4-61

Tax Compounding .........................................................................................................................................4-64

Tax Inclusiveness ..........................................................................................................................................4-65

Tax Recovery.................................................................................................................................................4-67

Tax Rounding ................................................................................................................................................4-69

Tax Overrides ................................................................................................................................................4-70

Offset Taxes...................................................................................................................................................4-72

Party Tax Attributes.......................................................................................................................................4-73

Practice 3 Overview: Creating a First Party Tax Profile ..............................................................................4-74

Practice - Create a First Party Tax Profile .................................................................................................4-75

Solution – Create a First Party Tax Profile ................................................................................................4-77

Multiple Tax Registrations ............................................................................................................................4-80

Tax Exemptions.............................................................................................................................................4-82

Tax Exceptions ..............................................................................................................................................4-84

Tax Formulas.................................................................................................................................................4-85

Global Descriptive Flexfields ........................................................................................................................4-87

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Transaction Tax Upgrade ..............................................................................................................................4-88

Practice 4 Overview: Creating Transactions with Applicable Tax...............................................................4-90

Practice - Create Transactions with Applicable Tax..................................................................................4-91

Solution – Create Transactions with Applicable Tax ................................................................................4-95

New Features .................................................................................................................................................4-100

Content and Services Subscription ................................................................................................................4-101

Events and Configuration Owner Options.....................................................................................................4-102

Tax Jurisdictions............................................................................................................................................4-104

Tax Rules.......................................................................................................................................................4-105

Practice 5 Overview: Setting Up Tax Rule Defaults ....................................................................................4-106

Practice - Set Up Tax Rule Defaults ..........................................................................................................4-107

Solution – Set Up Tax Rule Defaults.........................................................................................................4-108

Fiscal Classifications: Product.......................................................................................................................4-110

Fiscal Classifications: Party...........................................................................................................................4-111

Fiscal Classifications: Transaction ................................................................................................................4-113

Tax Repository ..............................................................................................................................................4-115

Practice 6 Overview: Creating Tax Accounts...............................................................................................4-116

Practice - Create Tax Accounts .................................................................................................................4-117

Solution – Create Tax Accounts ................................................................................................................4-118

Tax Simulator ................................................................................................................................................4-120

Practice 7 Overview: Reviewing Tax Configuration Results Using the Tax Simulator ...............................4-121

Practice - Review Tax Configuration Results Using the Tax Simulator....................................................4-122

Solution – Review Tax Configuration Results Using the Tax Simulator ..................................................4-126

Guided Configuration ....................................................................................................................................4-130

Profile Options for Tax..................................................................................................................................4-132

Upgrade Considerations ................................................................................................................................4-133

Implementation Information..........................................................................................................................4-134

Summary........................................................................................................................................................4-135

Oracle General Ledger....................................................................................................................................5-1

Oracle General Ledger...................................................................................................................................5-3

Objectives ......................................................................................................................................................5-4

Agenda – Part 1 .............................................................................................................................................5-5

Agenda – Part 2 .............................................................................................................................................5-6

Agenda – Part 1 .............................................................................................................................................5-7

Accounting Setup ..........................................................................................................................................5-8

Accounting Setup Benefits ............................................................................................................................5-11

Accounting Setup Manager ...........................................................................................................................5-12

Accounting Setup Manager Benefits .............................................................................................................5-14

Accounting Setup Process .............................................................................................................................5-15


Practice 1 Overview - Define a Ledger .........................................................................................................5-18

Practice - Define a Ledger .........................................................................................................................5-19

Solution – Define a Ledger........................................................................................................................5-22

Agenda – Part 1 .............................................................................................................................................5-28

Multiple Currency Support For General Ledger Data From All Sources ......................................................5-29

Multiple Currency Support For General Ledger Data From All Sources Benefits........................................5-32

Multiple Currency Support For General Ledger Data From All Sources Process.........................................5-33


Guided Demonstration 1 Overview: Create Accounting Setup ....................................................................5-35

Guided Demonstration - Create Accounting Setup....................................................................................5-36

Agenda – Part 1 .............................................................................................................................................5-43

Entered Currency Reporting and Analysis Description.................................................................................5-44

Entered Currency Reporting and Analysis Description................................................................................5-45

Entered Currency Reporting and Analysis Benefits .....................................................................................5-46

Entered Currency Reporting and Analysis Setup ..........................................................................................5-47

Agenda – Part 1 .............................................................................................................................................5-48

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Foreign Currency Recurring Journals Description .......................................................................................5-49

Foreign Currency Recurring Journals Benefits.............................................................................................5-50

Foreign Currency Recurring Journals Process...............................................................................................5-51


Agenda – Part 1 .............................................................................................................................................5-53

Data Access to Multiple Legal Entities and Ledgers Description .................................................................5-54

Data Access to Multiple Legal Entities and Ledgers Benefits.......................................................................5-57

Data Access to Multiple Legal Entities and Ledgers Process.......................................................................5-58

Data Access to Multiple Legal Entities and Ledgers Setup..........................................................................5-59

Data Access to Multiple Legal Entities and Ledgers Setup – Assign Data Access Set .................................5-60

Guided Demonstration 2 Overview: Create Data Access Sets with Read/Write Access...............................5-61

Guided Demonstration - Create Data Access Sets with Read/Write Access .............................................5-62


Agenda – Part 1 .............................................................................................................................................5-66

Multi-Ledger Processing Description............................................................................................................5-67

Multi-Ledger Processing Benefits ................................................................................................................5-69

Multi-Ledger Processing ...............................................................................................................................5-70

Guided Demonstration 3 Overview: Viewing Ledger Sets ..........................................................................5-71

Guided Demonstration - View Ledger Set.................................................................................................5-72

Multi-Ledger Processing Process – Simultaneous Opening and Closing of Periods.....................................5-73

Multi-Ledger Processing Process – Simultaneous Year-End Closing Journals.............................................5-74

Multi-Ledger Processing Process – Simultaneous Currency Translation.....................................................5-75

Multi-Ledger Processing Process – Financial Reporting Across Ledgers ..................................................5-76

Multi-Ledger Processing Setup ....................................................................................................................5-77

Guided Demonstration 4 Overview: Ledger Set Processing ........................................................................5-78

Guided Demonstration - Ledger Set Processing ........................................................................................5-79

Practice 2 Overview: Create a Ledger Set .....................................................................................................5-84

Practice - Create a Ledger Set....................................................................................................................5-85

Solution - Create a Ledger Set...................................................................................................................5-88

Agenda – Part 1 .............................................................................................................................................5-93

Financial Reports Across Ledgers Description.............................................................................................5-94

Financial Reports Across Ledgers Benefits..................................................................................................5-95

Financial Reports Across Ledgers Process ...................................................................................................5-96

Financial Reports Across Ledgers Setup ......................................................................................................5-97

Guided Demonstration 5 Overview FSG Reporting Using Ledger Sets.......................................................5-98

Guided Demonstration - FSG Reporting Using Ledger Sets .....................................................................5-99

Agenda – Part 1 .............................................................................................................................................5-101

Cross-Ledger and Foreign Currency Allocations Description.....................................................................5-102

Cross-Ledger and Foreign Currency Allocations Benefits ...........................................................................5-103

Cross-Ledger and Foreign Currency Allocations Setup and Process ...........................................................5-104

Agenda – Part 1 .............................................................................................................................................5-105

Streamlined Automatic Posting/Reversal Description...................................................................................5-106

Streamlined Automatic Posting/Reversal Benefits .......................................................................................5-107

Streamlined Automatic Posting/Reversal Setup and Process .......................................................................5-108

Agenda – Part 1 .............................................................................................................................................5-109

Integrated Web-based Spreadsheet Interface Description .............................................................................5-110

Integrated Web-based Spreadsheet Interface Benefits...................................................................................5-112

Integrated Web-based Spreadsheet Interface Setup and Process...................................................................5-113

Agenda – Part 1 .............................................................................................................................................5-114

Journal Copy Description ..............................................................................................................................5-115

Journal Copy Benefits ...................................................................................................................................5-116

Journal Copy Setup and Process....................................................................................................................5-117

Agenda – Part 2 .............................................................................................................................................5-118

Streamlined Consolidation Mappings Description .......................................................................................5-119

Streamlined Consolidation Mappings Benefits ............................................................................................5-122

Streamlined Consolidation Mappings Setup and Process.............................................................................5-123

Agenda – Part 2 .............................................................................................................................................5-124

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Replacement for Disabled Accounts Description .........................................................................................5-125

Replacement for Disabled Accounts Benefits ..............................................................................................5-126

Replacement for Disabled Accounts Setup and Process...............................................................................5-127

Agenda – Part 2 .............................................................................................................................................5-128

Management Reporting and Security Description........................................................................................5-129

Management Reporting and Security ............................................................................................................5-130

Management Reporting and Security Benefits .............................................................................................5-133

Management Reporting and Security Setup .................................................................................................5-134

Agenda – Part 2 .............................................................................................................................................5-135

Data Access Security for Legal Entities and Ledgers Description ................................................................5-136

Data Access Security for Legal Entities and Ledgers Description ...............................................................5-140

Data Access Security for Legal Entities and Ledgers Benefits......................................................................5-142

Data Access Security for Legal Entities and Ledgers Setup and Process.....................................................5-143

Guided Demonstration 6 Overview: Entering Journals Using Different Balancing Segment Values (BSVs)

.......................................................................................................................................................................5-145

Guided Demonstration - Enter Journals Using Different Balancing Segment Values (BSVs)..................5-146

Agenda – Part 2 .............................................................................................................................................5-148

Journal Reversal Enhancements Description and Benefits...........................................................................5-149

Journal Reversal Enhancements Setup .........................................................................................................5-150

Agenda – Part 2 .............................................................................................................................................5-151

Control Accounts Description and Benefits ..................................................................................................5-152

Control Accounts Setup and Process .............................................................................................................5-153

Agenda – Part 2 .............................................................................................................................................5-154

Security for Definitions Description..............................................................................................................5-155

Security for Definitions .................................................................................................................................5-157

Security for Definitions - Example................................................................................................................5-158

Security for Definitions Benefits ..................................................................................................................5-159

Security for Definitions Setup and Process ..................................................................................................5-160

Guided Demonstration 7 Overview: Defining Definition Access Sets and Secure Definitions ....................5-161

Guided Demonstration - Define Definition Access Sets and Secure Definitions ......................................5-162

Agenda – Part 2 .............................................................................................................................................5-165

Accounting and Reporting Sequencing Description......................................................................................5-166

Accounting and Reporting Sequencing Benefits ..........................................................................................5-167

Accounting and Reporting Sequencing Setup and Process ..........................................................................5-168

Agenda – Part 2 .............................................................................................................................................5-169

Journal Line Reconciliation Description .......................................................................................................5-170

Journal Line Reconciliation Benefits............................................................................................................5-171

Journal Line Reconciliation Setup and Process ............................................................................................5-172

Agenda – Part 2 .............................................................................................................................................5-173

Enhanced Intercompany Description.............................................................................................................5-174

Enhanced Intercompany Benefits ..................................................................................................................5-175

Enhanced Intercompany Accounting and Balancing Rules Process.............................................................5-176

Enhanced Balancing Process – Intracompany Journals ................................................................................5-177

Enhanced Intercompany Accounting and Balancing Rules Setup................................................................5-179


Guided Demonstration 8 Overview: Advanced Intercompany Global System .............................................5-181

Guided Demonstration - Advanced Global Intercompany System............................................................5-182

Summary........................................................................................................................................................5-199

Oracle Fixed Assets .........................................................................................................................................6-1

Oracle Fixed Assets .......................................................................................................................................6-3

Objectives ......................................................................................................................................................6-4

Agenda...........................................................................................................................................................6-5

Subledger Accounting Architecture Description ...........................................................................................6-7

Subledger Accounting Architecture Benefits ................................................................................................6-8

Subledger Accounting Process ......................................................................................................................6-9

Subledger Accounting Architecture Summary ..............................................................................................6-10

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Guided Demonstration 1 Overview: Performing Asset Inquiries .................................................................6-11

Guided Demonstration -Perform Asset Inquiries.......................................................................................6-12

Practice 1 Overview: Performing Asset Inquiries ........................................................................................6-15

Practice - Perform Asset Inquiries .............................................................................................................6-16

Solution – Perform Asset Inquiries............................................................................................................6-18

Subledger Accounting Setup .........................................................................................................................6-24

Agenda...........................................................................................................................................................6-25

Enhanced Mass Additions for Legacy Conversions Description...................................................................6-26

Guided Demonstration 2 Overview: Adding Assets Using Web ADI..........................................................6-28

Guided Demonstration - Add Assets Using Web ADI ..............................................................................6-29

Practice 2 Overview: Adding Assets Using Web ADI (Optional)................................................................6-32

Practice - Add Assets Using Web ADI......................................................................................................6-33

Solution – Add Assets Using Web ADI ....................................................................................................6-36

Enhanced Mass Additions for Legacy Conversions Benefits ........................................................................6-39


Agenda...........................................................................................................................................................6-41

Automatic Preparation of Mass Additions Description .................................................................................6-42

Automatic Preparation of Mass Additions Benefits ......................................................................................6-43

Automatic Preparation of Mass Additions Process.......................................................................................6-44

Automatic Preparation of Mass Additions Process .......................................................................................6-45

Guided Demonstration 3 Overview: Automatic Preparation of Mass Addition Lines .................................6-46

Guided Demonstration - Automatic Preparation of Mass Addition Lines.................................................6-47

Automatic Preparation of Mass Additions Setup..........................................................................................6-56

Automatic Preparation of Mass Additions Setup Quickcodes......................................................................6-57

Agenda...........................................................................................................................................................6-58

Flexible Reporting Using XML Publisher Description .................................................................................6-59

Benefits..........................................................................................................................................................6-61

Flexible Reporting Using XML Publisher Setup...........................................................................................6-62

Flexible Reporting Using XML Publisher Example XML Output...............................................................6-63

Agenda...........................................................................................................................................................6-64

Automatic Depreciation Rollback Description..............................................................................................6-65

Automatic Depreciation Rollback Benefits ...................................................................................................6-66

Agenda...........................................................................................................................................................6-67

Enhanced Functionality for Energy Industry Description .............................................................................6-68

Practice 3 Overview: Setting Up Group Assets (Optional) ..........................................................................6-69

Practice - Set Up Group Assets..................................................................................................................6-70

Solution – Set Up Group Assets ................................................................................................................6-72

Summary........................................................................................................................................................6-74

Oracle Purchasing ...........................................................................................................................................7-1

Oracle Purchasing..........................................................................................................................................7-3

Objectives ......................................................................................................................................................7-4

Agenda Part 1 ................................................................................................................................................7-5

Agenda Part 2 ................................................................................................................................................7-6

Agenda Part 1 ................................................................................................................................................7-7

Professional Buyer's Work Center Description .............................................................................................7-8

Professional Buyer's Work Center Benefits...................................................................................................7-9

Professional Buyer's Work Center Overview ................................................................................................7-10

Professional Buyer's Work Center Requisition Management........................................................................7-11

Guided Demonstration 1 Overview: Using Professional Buyer's Work Center ...........................................7-13

Guided Demonstration - Using the Buyer's Work Center..........................................................................7-14

Practice 1 Overview: Creating a Purchase Order in the Buyer's Work Center ..............................................7-17

Practice - Create a Purchase Order in the Buyer's Work Center................................................................7-18

Solution - Create a Purchase Order in the Buyer's Work Center ...............................................................7-19

Professional Buyer's Work Center Requisition Management – Key Profile Options...................................7-22


Agenda Part 1 ................................................................................................................................................7-26

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Enhanced Catalog Access Description ..........................................................................................................7-27

Enhanced Catalog Access Benefits................................................................................................................7-28

Enhanced Catalog Access Setup Preferences ................................................................................................7-29

Agenda Part 1 ................................................................................................................................................7-30

Document Styles Description ........................................................................................................................7-31

Document Styles Benefits .............................................................................................................................7-32

Document Styles Process – Source Document Reference .............................................................................7-33

Guided Demonstration 2 Overview: Creating and Using Document Styles .................................................7-34

Guided Demonstration - Using Document Styles......................................................................................7-35

Agenda Part 1 ................................................................................................................................................7-37

Procurement for Complex Services Description............................................................................................7-38

Procurement for Complex Services High Level Business Flow....................................................................7-39

Procurement for Complex Services New Purchasing Features.....................................................................7-40

Procurement for Complex Services Benefits................................................................................................7-42


Agenda Part 1 ................................................................................................................................................7-46


Multi-Org Access Control Benefits ...............................................................................................................7-48

MOAC Effects – Forms and Pages................................................................................................................7-49

Multi-Org Access Control Public APIs ........................................................................................................7-50

Agenda Part 1 ................................................................................................................................................7-51

E-Business Tax Description .........................................................................................................................7-52

E-Business Tax Benefits................................................................................................................................7-53

E-Business Tax Process – Tax Calculation ..................................................................................................7-54

E-Business Tax Setup...................................................................................................................................7-55


Agenda Part 1 ................................................................................................................................................7-57

Document Publishing Enhancements Description.........................................................................................7-58

Document Publishing Enhancements Benefits ..............................................................................................7-60

Document Publishing Enhancements Setup and Process .............................................................................7-61

Document Publishing Enhancements Setup – PDF Template ......................................................................7-62

Document Publishing Enhancements Setup – RTF Template ......................................................................7-63

Document Publishing Enhancements Setup – Upload Template..................................................................7-64

Document Publishing Enhancements Process – Printing in Procurement Flow...........................................7-65

Document Publishing Enhancements Process – Print Purchasing Document ..............................................7-66


Agenda Part 1 ................................................................................................................................................7-68

Document Attachments Description.............................................................................................................7-69

Document Attachments Benefits ..................................................................................................................7-71

Document Attachments Process ...................................................................................................................7-72

Document Attachments Setup .......................................................................................................................7-73

Document Attachments Setup – Define Purchasing Options .......................................................................7-74

Agenda Part 1 ................................................................................................................................................7-75

Oracle Supplier Network Description............................................................................................................7-76

Transacting Over Oracle Supplier Network ..................................................................................................7-77

Oracle Supplier Network Support Transactions with Purchasing..................................................................7-78

Oracle Supplier Network Benefits.................................................................................................................7-79

Oracle Supplier Network New Features ........................................................................................................7-80


Agenda Part 2 ................................................................................................................................................7-82

Maintain Sourcing Rules/ASLs for Agreement Items ...................................................................................7-83

Maintain Sourcing Rules/ASLs for Agreement Items Benefits.....................................................................7-84

Maintain Sourcing Rules/ASLs for Agreement Items - Define Rules for a Specific Plant ...........................7-85

Agenda Part 2 ................................................................................................................................................7-87

Support for Contractor Purchasing Users Description...................................................................................7-88

Support for Contractor Purchasing Users Benefits ........................................................................................7-89

Support for Contractor Purchasing Users Setup ...........................................................................................7-90

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Support for Contractor Purchasing Users Setup – Set Profile Option ..........................................................7-91


Agenda Part 2 ................................................................................................................................................7-93

Compliance to Packaging Constraints Description........................................................................................7-94

Compliance to Packaging Constraints Benefits .............................................................................................7-96

Compliance to Packaging Constraints Process Summary..............................................................................7-97

Compliance to Packaging Constraints Process – Apply Order Modifiers .....................................................7-98

Compliance to Packaging Constraints Process – Perform UOM Conversion ...............................................7-99

Compliance to Packaging Constraints Process – Perform Quantity Rounding..............................................7-100

Compliance to Packaging Constraints Setup and Process .............................................................................7-101


Agenda Part 2 ................................................................................................................................................7-104

Auto-Approval Tolerances for Change Orders Description ..........................................................................7-105

Auto-Approval Tolerances for Change Orders Setup and Process................................................................7-106

Agenda Part 2 ................................................................................................................................................7-107

EAM Support for Services Procurement Description....................................................................................7-108

EAM Support for Services Procurement Setup and Process .........................................................................7-109

Additional Considerations .............................................................................................................................7-111


Agenda Part 2 ................................................................................................................................................7-113

Model Complex Pricing for Blanket Line Items Description ........................................................................7-114

Model Complex Pricing for Blanket Line Items Benefits .............................................................................7-116

Model Complex Pricing for Blanket Line Items Setup and Process..............................................................7-117

Model Complex Pricing for Blanket Line Items Pricing Hierarchy ..............................................................7-118

Model Complex Pricing for Blanket Line Items Profile Options ..................................................................7-119


Agenda Part 2 ................................................................................................................................................7-124

Mass Re-pricing of Purchasing Documents Description ...............................................................................7-125

Mass Re-pricing of Purchasing Documents Benefits ...................................................................................7-126

Mass Re-pricing of Purchasing Documents Process.....................................................................................7-127


Agenda Part 2 ................................................................................................................................................7-129

New User Interface for Oracle Purchasing Setups Description .....................................................................7-130

New User Interface for Oracle Purchasing Setups Benefits .........................................................................7-132

Agenda Part 2 ................................................................................................................................................7-133

Advanced Approval Support for Requisitions Description ...........................................................................7-134

Advanced Approval Support for Requisitions Benefits.................................................................................7-135

Advanced Approval Support for Requisitions Parallel Approvals ...............................................................7-136

Advanced Approval Support for Requisitions Voting Method.....................................................................7-137

Advanced Approval Support for Requisitions Position Hierarchy Support .................................................7-138

Advanced Approval Support for Requisitions Setup and Process .................................................................7-139


Summary........................................................................................................................................................7-141

Oracle Accounts Payable ................................................................................................................................8-1

Oracle Accounts Payable...............................................................................................................................8-3

Objectives ......................................................................................................................................................8-4

Practices 1, 2, and 3 Overview: Prerequisite Practices ..................................................................................8-5

Practice - Create a New Employee (Required) ..........................................................................................8-6

Solution - Create a New Employee (Required) .........................................................................................8-8

Practice - Create a New User.....................................................................................................................8-11

Solution - Create a New User ....................................................................................................................8-12

Practice - Set Yourself Up As a Buyer (Required) ....................................................................................8-14

Solution - Set Yourself Up As a Buyer......................................................................................................8-15

Agenda...........................................................................................................................................................8-17

Suppliers in the Trading Community Architecture (TCA) ...........................................................................8-19

TCA Security by Functional Areas................................................................................................................8-20

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Payment Banks, Branches, and Accounts......................................................................................................8-21

Supplier Bank Accounts ................................................................................................................................8-22

Collaboration with Suppliers to Resolve Disputes ........................................................................................8-23

Invoice Requests............................................................................................................................................8-24


Practice 4 Overview: Creating a Supplier......................................................................................................8-26

Practice - Create a Supplier With Two Sites .............................................................................................8-27

Solution - Create a Supplier With Two Sites.............................................................................................8-30

Agenda...........................................................................................................................................................8-45

Deferred Recoverability ................................................................................................................................8-46

Deferred Recoverability Features ..................................................................................................................8-47

Deferred Recoverability Benefits ..................................................................................................................8-48

Deferred Recoverability Process Part 1: Set Up and Invoice .......................................................................8-49

Deferred Recoverability Process Part 2: Set Up and Payment .....................................................................8-50

Setup Taxes with Deferred Recoverability ....................................................................................................8-51


Agenda...........................................................................................................................................................8-53

Enhanced Asset Tracking ..............................................................................................................................8-54

Enhanced Asset Tracking Benefits ................................................................................................................8-55

Enhanced Asset Tracking Process .................................................................................................................8-56

Invoice Lines .................................................................................................................................................8-57


Practice 5 Overview: Matching to Purchase Order........................................................................................8-59

Practice - Match to Purchase Order ...........................................................................................................8-60

Solution - Match to Purchase Order ..........................................................................................................8-64

Agenda...........................................................................................................................................................8-71

Payment Requests Key Concepts ..................................................................................................................8-72

Payment Requests Description ......................................................................................................................8-73

Payment Requests Benefits............................................................................................................................8-75

Payment Requests Process.............................................................................................................................8-76

Oracle Receivables – Refund Example .........................................................................................................8-77

Funds Disbursement Process- Loans .............................................................................................................8-78

Payment Request – Additional Payables Actions..........................................................................................8-79

Payment Requests: Synchronizing Between Products..................................................................................8-80

Payment Requests Reporting.........................................................................................................................8-81

Payment Requests Optional Setup.................................................................................................................8-82

Payment Requests Miscellaneous Set up.......................................................................................................8-83


Agenda...........................................................................................................................................................8-85

Payment Method Controls and Enhanced Payment Information...................................................................8-86

Key Concepts.................................................................................................................................................8-87

Evaluate Payment Choices – Reporting and Payment Instruction Requirements..........................................8-90

Enhanced Payment Method Controls Description.........................................................................................8-94

Enhanced Payment Method Controls Benefits ..............................................................................................8-95

Enhanced Payment Method Controls Process – Enter Payables Document ..................................................8-96

Expanded Payment Attribute Availability and Defaulting - Definition.........................................................8-99

Expanded Payment Attribute Availability and Defaulting Description.........................................................8-100

Expanded Payment Attribute Availability and Defaulting - Benefits............................................................8-101

Expanded Payment Attribute Availability and Defaulting – Enter Payables Document ...............................8-102

Expanded Payment Attribute Availability and Defaulting - Payment Attributes Defaulting ........................8-103

Expanded Payment Attribute Availability and Defaulting - UI.....................................................................8-104

Practice 6 Overview: Entering Quick Invoices..............................................................................................8-105

Practice - Enter Quick Invoices .................................................................................................................8-106

Solution - Enter Quick Invoices.................................................................................................................8-109

Configurable Payment Attribute Validation Description...............................................................................8-112

Configurable Payment Attribute Validation Benefits....................................................................................8-113

Configurable Payment Attribute Validation Invoice: Scheduled Payment Holds .........................................8-114

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Configurable Payment Attribute Validation Invoice: Invoice on Hold Report .............................................8-115

Practice 7 Overview: Running Hold Reports.................................................................................................8-116

Practice - Run Hold Reports ......................................................................................................................8-117

Solution – Run Hold Reports.....................................................................................................................8-118

Configurable Payment Attribute Validation Payment: Payment Processing Choices ...................................8-119

Practice 8 Overview: Create a Payment Process Request Template..............................................................8-121

Practice - Create a Payment Process Request Template ............................................................................8-122

Solution - Create a Payment Process Request Template ...........................................................................8-124

Configurable Payment Attribute Validation Payment: Payment Processing Choices ...................................8-127

Practice 9 Overview: Creating a Payment Process Request ..........................................................................8-129

Practice - Create a Payment Process Request with Straight-Through Processing for a Payment Method of Check

...................................................................................................................................................................8-130

Solution – Create a Payment Process Request with Straight-Through Processing for a Payment Method of

Check.........................................................................................................................................................8-134

Expanded Payment Attribute Availability Payment Instruction Formats and Reporting - Benefits..............8-143

Expanded Payment Attribute Availability Payment Instruction Formats and Reporting ..............................8-144

Payment Instruction Formats and Reporting XML Publisher Templates ......................................................8-145

Payment Instruction Formats & Reporting XML Publisher Templates.........................................................8-146

Expanded Payment Attribute Availability Payment Instruction Formats and Reporting .............................8-147

Formats & Reporting Payment Process .........................................................................................................8-148

Formats and Reporting Payment Process ......................................................................................................8-149


Formats and Reporting Payment Process ......................................................................................................8-151


Setup Payment Method Controls and Enhanced Payment.............................................................................8-153

Configurable Payment Attribute Validation Setup .......................................................................................8-154

Configurable Payment Attribute Validation Setup Consideration................................................................8-155

Configurable Payment Attribute Validation Setup: View Available Validations..........................................8-157

Configurable Payment Attribute Validation Setup – Payment Methods .......................................................8-158

Configurable Payment Attribute Validation Setup: Payment Process Format ..............................................8-159

Configurable Payment Attribute Validation Setup: Payment Process Profile ...............................................8-160

Expanded Payment Attribute Availability Payment Instruction Formats and Reporting Setup ....................8-161

Enhanced Payment Method Controls Setup ..................................................................................................8-162

Expanded Payment Attribute Availability and Defaulting - Setup................................................................8-163


Agenda...........................................................................................................................................................8-165

Self Assessed Tax Description ......................................................................................................................8-166

Self Assessed Tax Features ...........................................................................................................................8-167

Self Assessed Tax Benefits............................................................................................................................8-168

Self Assessed Tax Predetermined Process.....................................................................................................8-169

Self Assessed Tax Process – 1. Predetermined..............................................................................................8-170

Self Assessed Tax: Predetermined Process – Invoice Entry..........................................................................8-171

Self Assessed Tax: Predetermined Process – Calculate Tax .........................................................................8-172

Self Assessed Tax: Predetermined Process – Calculate Tax Example .........................................................8-173

Self Assessed Tax: Predetermined Process – Calculate Tax .........................................................................8-174

Self Assessed Tax Process – Account ...........................................................................................................8-175

Self Assessed Tax Setup – Reporting Choices ..............................................................................................8-177

Self Assessed Tax Process – Report ..............................................................................................................8-179

Self Assessed Tax Manual Determination Process........................................................................................8-180

Self Assessed Tax Process – 2. Manual Determination.................................................................................8-181

Self Assessed Tax: Manual Determination Set Up - E-Business Tax Controls.............................................8-182

Self Assessed Tax: Manual Determination Process – Invoice Entry.............................................................8-183

Self Assessed Tax: Manual Determination Process – Calculate Tax ............................................................8-184

Self Assessed Tax: Manual Determination Process – Calculate Tax Example .............................................8-185

Setup Self Asessed Tax .................................................................................................................................8-187

Self Assessed Tax: Predetermined Set Up First Party, Party Tax Profile......................................................8-188

Self Assessed Tax: Predetermined Set Up – First Party, Party Tax Profile...................................................8-189

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Self Assessed Tax: Predetermined Set Up – Supplier Party Tax Profile .......................................................8-190


Agenda...........................................................................................................................................................8-192

Oracle Payables For Complex Contract Terms .............................................................................................8-193

Oracle Payables for Complex Contract Terms Benefits ................................................................................8-194

Complex Contract Terms Key Concepts .......................................................................................................8-195

Oracle Procurement to Payables: High Level Business Flow.......................................................................8-197

Integrated Products: High Level Business Flow............................................................................................8-203

Oracle e-Business Tax Setup: Tax Configuration .........................................................................................8-204

Business Flow: Payables Distinction.............................................................................................................8-205

Contract Delivery Invoicing ..........................................................................................................................8-206

Invoice Workbench: Contract Delivery Invoices ..........................................................................................8-207

Oracle Payables: Ensure Billing Compliance ................................................................................................8-208

Oracle Payables: Tolerances and Holds.........................................................................................................8-209

Oracle Payables: Holds Notification Options ................................................................................................8-211

Practices 10 and 11 Overview: Placing and Releasing Holds.......................................................................8-212

Practice - Place a Hold on an Invoice ........................................................................................................8-213

Solution - Place a Hold on an Invoice .......................................................................................................8-214

Practice - Release Holds ............................................................................................................................8-215

Solution - Release Holds ...........................................................................................................................8-216

Oracle Payables for Complex Contract Terms Benefits ................................................................................8-217

Oracle Procurement to Payables: Setup Overview ........................................................................................8-218

Oracle Procurement Setup .............................................................................................................................8-219

Payables Setup: Financial Options ................................................................................................................8-221

Payables Setup – Payables Options ...............................................................................................................8-222

Payables Setup: Invoice Tolerances ..............................................................................................................8-223

Shared Setup: Supplier Terms & Controls ....................................................................................................8-224

Oracle Approvals Management Setup Approval Rules .................................................................................8-225

Oracle eBusiness Tax Setup: Tax Configuration...........................................................................................8-226

Prepayments: Tax Configuration Example....................................................................................................8-227

Practice 12 Overview: Setting Up US Sales Tax..........................................................................................8-228

Practice - Set Up US Sales Tax .................................................................................................................8-229

Solution – Set Up US Sales Tax ................................................................................................................8-235

Practice 13 Overview: Entering an Invoice with US Sales Tax Lines...........................................................8-244

Practice - Enter an Invoice with US Sales Tax Lines ................................................................................8-245

Solution - Enter an Invoice with US Sales Tax Lines................................................................................8-246


Agenda...........................................................................................................................................................8-250

Multi-Org Access Control in Payables Description.......................................................................................8-251

Multi-Org Access Control in Payables Benefits ............................................................................................8-254

Multi-Org Access Control Process ................................................................................................................8-255

Multi-Org Access Control Process, Invoice Entry ........................................................................................8-256

Multi-Org Access Control Process, Payment Templates...............................................................................8-258

Multi-Org Access Control Process, Controlling Payables Periods...............................................................8-259

Multi-Org Access Control Process, Submitting Concurrent Request ...........................................................8-260

Multi-Org Access Control Process, Submitting Standard Report..................................................................8-261

Multi-Org Access Control Process, Open Account Balances Listing Report................................................8-262

Multi-Org Access Control Setup ...................................................................................................................8-263

Multi-Org Access Control Payables Setup ....................................................................................................8-264


Summary........................................................................................................................................................8-266

Oracle Receivables...........................................................................................................................................9-1

Oracle Receivables ........................................................................................................................................9-3

Objectives ......................................................................................................................................................9-4

Practice 1 Overview: Modify Your Responsibilities .....................................................................................9-5

Practice - Modify Your Responsibilities....................................................................................................9-6

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Solution - Modify Your Responsibilities...................................................................................................9-7

Agenda...........................................................................................................................................................9-8

New and Changed Features for Balance Forward Billing .............................................................................9-10

Balance Forward Billing Description ............................................................................................................9-11

Balance Forward Billing Benefits .................................................................................................................9-14

Balance Forward Billing Setup and Process..................................................................................................9-16

Balance Forward Billing Setup Define Billing Cycle....................................................................................9-18

Balance Forward Billing Setup Define Payment Term .................................................................................9-20

Balance Forward Billing Setup Customer Profile Class................................................................................9-22

Practice 2 Overview: Create a Customer Class Profile..................................................................................9-24

Practice - Create a Customer Profile Class ................................................................................................9-25

Solution - Create a Customer Profile Class ...............................................................................................9-26

Practices 3-7 Overview: Prerequisite Practices .............................................................................................9-27

Practice - Create a Customer Using the Customers Set of Pages...............................................................9-28

Solution - Create a Customer Using the Customers Set of Pages..............................................................9-30

Practice - Add Customer Details Using the Customers Set of Pages.........................................................9-32

Solution - Add Customer Details Using the Customers Set of Pages........................................................9-35

Practice - Add Account Details Using the Customers Set of Pages...........................................................9-38

Solution - Add Account Details Using the Customers Set of Pages..........................................................9-41

Practice - Add Account Site Details Using the Customers Set of Pages ...................................................9-45

Solution - Add Account Site Details Using the Customers Set of Pages...................................................9-49

Practice - Create a Customer Account Relationship ..................................................................................9-54

Solution - Create a Customer Account Relationship .................................................................................9-55

Balance Forward Billing Setup Account & Site Profile ................................................................................9-56

Balance Forward Billing Setup Account Level Bill Example .......................................................................9-58

Balance Forward Billing Setup Site Level Bill Example .............................................................................9-59

Oracle BPA Rules Setup................................................................................................................................9-60

Balance Forward Billing Process Enter Transaction ....................................................................................9-62

Balance Forward Billing Process Imported Transactions.............................................................................9-63

Balance Forward Billing Process Creating Bills ..........................................................................................9-64

Balance Forward Billing Process Generating Bill Logic..............................................................................9-65

Balance Forward Billing Use Cases ..............................................................................................................9-67

Balance Forward Billing Process Generate Bill Program.............................................................................9-68

Balance Forward Billing Process Confirm Bill .............................................................................................9-70

Summary Balance Forward Bill Example .....................................................................................................9-72

Detail Balance Forward Bill ..........................................................................................................................9-73

Balance Forward Billing Process BPA Print Program..................................................................................9-74

Balance Forward Billing Process Disable Payment Terms ...........................................................................9-76

Balance Forward Billing Process Change Payment Terms ..........................................................................9-77

Balance Forward Billing Dependencies and Interactions .............................................................................9-78

Balance Forward Billing Functional Upgrade Script....................................................................................9-79

Demo 1 Overview: Balance Forward Billing ................................................................................................9-82

Guided Demonstration - Balance Forward Billing ....................................................................................9-83

Practice 8: Overview Printing Balance Forward Bills ..................................................................................9-89

Practice - Print Balance Forward Bills.......................................................................................................9-90

Solution - Print Balance Forward Bills......................................................................................................9-92

Agenda...........................................................................................................................................................9-95

Credit Card Chargeback Description.............................................................................................................9-96

Credit Card Chargeback Benefits ..................................................................................................................9-98

Credit Card Chargeback Process ...................................................................................................................9-99

Credit Card Chargeback Process Receive Receipt .......................................................................................9-102

Credit Card Chargeback Process Record Credit Card Chargeback ..............................................................9-104

Credit Card Chargeback Process Validate Credit Card Chargeback ............................................................9-105

Credit Card Chargeback Process Validate Credit Card Chargeback .............................................................9-106

Credit Card Chargeback Process Validate Credit Card Chargeback ............................................................9-107

Credit Card Chargeback Setup ......................................................................................................................9-108

Practices 9-11 Overview: Applying and Updating a Receipt at Line Level ..................................................9-109

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Practice - Create an Invoice .......................................................................................................................9-110

Solution - Create an Invoice ......................................................................................................................9-111

Practice - Enter a Manual Receipt .............................................................................................................9-112

Solution - Enter a Manual Receipt.............................................................................................................9-113

Practice - Apply and Update Receipt at Line Level...................................................................................9-114

Solution - Apply and Update Receipt at Line Level..................................................................................9-115

Agenda...........................................................................................................................................................9-117

Legal Entity Background...............................................................................................................................9-118

Legal Entity Model........................................................................................................................................9-119

Legal Entity Background...............................................................................................................................9-120

Legal Entity Description................................................................................................................................9-121

Legal Entities and Accounting.......................................................................................................................9-122

Legal Entities and Shared Accounting...........................................................................................................9-123

Legal Entity Description Defaulting for Transactions...................................................................................9-124

Legal Entity Description Defaulting for Transactions..................................................................................9-125

Legal Entity Description Defaulting for Receipts ........................................................................................9-126

Legal Entity Benefits .....................................................................................................................................9-128

Legal Entity Setup and Automated Process...................................................................................................9-129

Legal Entity Setup Update Transaction Type...............................................................................................9-131

Legal Entity Setup Update Batch Source .....................................................................................................9-132

Legal Entity Process - AutoInvoice ...............................................................................................................9-133

Legal Entity Setup and Manual Process ........................................................................................................9-136

Legal Entity Process – Manual Transaction ..................................................................................................9-138

Legal Entity Process – On Account Credit Memos .......................................................................................9-139

Legal Entity Process – Bills Receivable ........................................................................................................9-140

Legal Entity Process - Receipts .....................................................................................................................9-141

Legal Entity Process – Claim LE Defaulting.................................................................................................9-142


Agenda...........................................................................................................................................................9-144

E-Business Tax..............................................................................................................................................9-145

Receivables E-Business Tax Integration Key Benefits.................................................................................9-146

E-Business Suite Tax Prior to Release 12 .....................................................................................................9-148

E-Business Suite Tax Integration 12.0 ..........................................................................................................9-149

Architecture of a Tax Line in E-Business Tax...............................................................................................9-150

Example of US Sales Tax in 12.0..................................................................................................................9-152

Example of UK VAT Tax in 12.0 .................................................................................................................9-153

Migrating Taxes from 11.5 to 12.0 ................................................................................................................9-154

Migrating of Tax Codes and Tax Group Codes.............................................................................................9-156

Use of Tax Rate Codes in Receivables..........................................................................................................9-158

Use of Tax Classifications in Receivables.....................................................................................................9-159

Setting Up New Taxes in E-Business Tax.....................................................................................................9-160

Receivables Specific Tax Setups ...................................................................................................................9-162

System Options..............................................................................................................................................9-163

Customer Tax ................................................................................................................................................9-164

Transaction Type ...........................................................................................................................................9-165

Receivables Activity......................................................................................................................................9-166

Adjustments, Receipt Discounts, and Recoverable Tax ................................................................................9-167

Standard Memo Lines....................................................................................................................................9-168

Legal Entity and Ship To...............................................................................................................................9-169

Transactions and Migrated Taxes ..................................................................................................................9-171

Transactions and Migrated Taxes: Key Differences.....................................................................................9-172

Transactions and New Taxes .........................................................................................................................9-174

Transactions and Manual Taxes ....................................................................................................................9-175


Agenda...........................................................................................................................................................9-177

Subledger Accounting Overview...................................................................................................................9-178

Subledger Accounting Benefits .....................................................................................................................9-179

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Subledger Accounting in Receivables Overview ..........................................................................................9-180

Subledger Accounting in Receivables Benefits .............................................................................................9-181

Subledger Accounting in Receivables Process Submit Accounting Program ...............................................9-182

Subledger Accounting in Receivables Process Create/View Accounting ....................................................9-183

Subledger Accounting in Receivables Process Online Create Accounting ...................................................9-184

Subledger Accounting in Receivables Setup .................................................................................................9-185

Subledger Accounting in Receivables Setup Ledgers and SLAMs ...............................................................9-186

Subledger Accounting in Receivables Setup Sources for Accounting Definitions........................................9-187

Subledger Accounting in Receivables Setup Predefined Event Classes/Types .............................................9-188

Subledger Accounting in Receivables Setup AR Predefined Event Classes/Types .....................................9-189

Subledger Accounting in Receivables Setup Anatomy of a Journal Entry....................................................9-190

Subledger Accounting in Receivables Setup Journal Line Types .................................................................9-191

Subledger Accounting in Receivables Setup Account Derivation Rule ........................................................9-192

Subledger Accounting in Receivables Setup Journal Line Definition of Invoices ........................................9-193

Subledger Accounting in Receivables Setup Assigning the JLD to the AAD...............................................9-194

Subledger Accounting in Receivables Setup Assigning the AAD to the SLAM...........................................9-195

Subledger Accounting in Receivables Setup Assigning the SLAM to the Ledger ........................................9-196

Subledger Accounting in Receivables Setup Predefined SLAMs ................................................................9-197

Subledger Accounting in Receivables Process Invoice Accounting..............................................................9-198

Subledger Accounting in Receivables Process Multi-Fund Receivables Accounting ...................................9-199

Subledger Accounting in Receivables Process Adjustment Accounting .......................................................9-200

Subledger Accounting in Receivables Process Receipt Application Accounting..........................................9-201


Agenda...........................................................................................................................................................9-204

Obsolescence and Replacement of Features Description ..............................................................................9-205

Demo 2 Overview: Oracle Advanced Collections.........................................................................................9-206

Guided Demonstration - Oracle Advanced Collections.............................................................................9-207


Practice 12 Overview: Using the New Customer Standard HTML Interface................................................9-215

Practice - Using the New Customer Standard HTML Interface ................................................................9-216

Solution - Using the New Customer Standard HTML Interface................................................................9-218


Obsolescence and Replacement of Features Benefits....................................................................................9-223

Transition to New Features Collections Workbench ....................................................................................9-224

Transition to New Features Collections Workbench - Menu and Forms......................................................9-226

Transition to New Features Collections Workbench - Account Details .......................................................9-228

Transition to New Features Collections Workbench - Dunning Reprint ......................................................9-229

Transition to New Features Bills Receivable.................................................................................................9-230

Transition to New Features Trade Accounting..............................................................................................9-231

Transition to New Features Customer Standard Form..................................................................................9-232

Transition to New Features Tax Setup and Calculation ...............................................................................9-233

Transition to New Features Tax Reporting...................................................................................................9-234

Transition to New Features Subledger Accounting ......................................................................................9-235

Transition to New Features COGS and Revenue Matching .........................................................................9-236

Transition to New Features AR Customer Supplier Netting ........................................................................9-237

Transition to New Features On Account Credit Memo Refund ...................................................................9-238

Transition to New Features Consolidated Billing.........................................................................................9-239

Agenda...........................................................................................................................................................9-240

Centralized Payment Process Description .....................................................................................................9-241

Centralized Payment Process Setup and Process...........................................................................................9-244

Centralized Payment Process Setup Create Receipt Class/Method ...............................................................9-245

Centralized Payment Process Process Invoice Payment...............................................................................9-247

Centralized Payment Process Error Handling................................................................................................9-248

Centralized Payment Process Setup Customer's Payment Details.................................................................9-249


Agenda...........................................................................................................................................................9-251

Automated Refunds Description....................................................................................................................9-252

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Automated Refunds Setup and Process .........................................................................................................9-253

Automated Refunds Setup Receivables Activity...........................................................................................9-254

Automated Refunds Setup Transaction Sources............................................................................................9-255

Automated Refunds Process Applications Form ...........................................................................................9-257

Automated Refunds Process New Refund Attributes Form ..........................................................................9-258

Automated Refunds Process View Refund Status .........................................................................................9-259


Agenda...........................................................................................................................................................9-261

AP/AR Netting Description...........................................................................................................................9-262

AP/AR Netting Benefits ................................................................................................................................9-263

AP/AR Netting Process Access .....................................................................................................................9-264

AP/AR Netting Process Accessing................................................................................................................9-265

Demo 3 Overview: AP/AR Netting ...............................................................................................................9-266

Demo - AP/AR Netting .............................................................................................................................9-267

Agenda...........................................................................................................................................................9-272

Daily Revenue Description............................................................................................................................9-273

Daily Revenue Setup and Process .................................................................................................................9-278

Daily Revenue Setup Accounting Rules........................................................................................................9-279

Daily Revenue Process Create Invoice Line..................................................................................................9-280


Agenda...........................................................................................................................................................9-282

Revenue Contingencies Overview.................................................................................................................9-283

Revenue Contingencies Description..............................................................................................................9-284

Revenue Contingencies Setup and Process....................................................................................................9-287

Revenue Contingencies Setup Policy Threshold ...........................................................................................9-288

Revenue Contingencies Setup Seeded Contingencies ..................................................................................9-289

Revenue Contingencies Setup Contingency Codes/ID..................................................................................9-290

Revenue Contingencies Setup Create Rules ..................................................................................................9-291

Revenue Contingencies Process Contingency Assignment ..........................................................................9-292

Revenue Contingency Process Manage Contingencies ................................................................................9-293


Practice 13 Overview: Setting Up Revenue Contingencies..........................................................................9-295

Practice - Set Up Revenue Contingencies .................................................................................................9-296

Solution – Set Up Revenue Contingencies ................................................................................................9-298

Agenda...........................................................................................................................................................9-300

COGS and Revenue Matching Description ...................................................................................................9-301

COGS and Revenue Matching Benefits ........................................................................................................9-302

COGS and Revenue Matching Process COGS Recognition ........................................................................9-303


Agenda...........................................................................................................................................................9-305


Multi-Org Access Control Benefits ...............................................................................................................9-308

Receivables & Multi-Org Access Control .....................................................................................................9-309

Multi-Org Access Control Process ................................................................................................................9-312

Multi-Org Access Control Reporting ............................................................................................................9-313

Multi-Org Access Control Reporting Process ...............................................................................................9-314

Summary........................................................................................................................................................9-316

Oracle Cash Management...............................................................................................................................10-1

Oracle Cash Management..............................................................................................................................10-3

Objectives ......................................................................................................................................................10-4

Agenda...........................................................................................................................................................10-5

Bank Account Model Definition ...................................................................................................................10-7

Bank Account Model Integration ..................................................................................................................10-8

Bank Account Model Benefits.......................................................................................................................10-9

Cash Management Security Components ......................................................................................................10-10

Bank Account Model Summary ....................................................................................................................10-12

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Practice 1 Overview: Creating a Bank Account ...........................................................................................10-13

Practice - Create a Bank Account ..............................................................................................................10-14

Solution - Create a Bank Account .............................................................................................................10-16

Bank Account Model Setup and Process.......................................................................................................10-19


Agenda...........................................................................................................................................................10-21

Bank Account Balances and Interest Calculations Description.....................................................................10-22

Bank Account Balances and Interest Calculations Benefits ..........................................................................10-23

Bank Account Balances and Interest Calculations Maintenance..................................................................10-24

Bank Account Balances and Interest Calculations Summary .......................................................................10-25

Bank Account Balances and Interest Calculations Setup .............................................................................10-26


Agenda...........................................................................................................................................................10-28

Bank Account Transfers Description............................................................................................................10-29

Bank Account Transfers Benefits .................................................................................................................10-31

Bank Account Transfers Process ...................................................................................................................10-32

Bank Account Transfers Dependencies and Interactions ..............................................................................10-33

Bank Account Transfers Summary................................................................................................................10-34

Bank Account Transfers Setup ......................................................................................................................10-35

Bank Account Transfers Setup – Set System Profile....................................................................................10-36

Practice 2 Overview: Setting Up Payment Templates ..................................................................................10-37

Practice - Create a Bank Transfer ..............................................................................................................10-38

Solution - Create a Bank Transfer .............................................................................................................10-39

Practice 3 Overview: Setting Up Bank Transfers .........................................................................................10-41

Practice - Create a Bank Transfer ..............................................................................................................10-42

Solution - Create a Bank Transfer .............................................................................................................10-43


Agenda...........................................................................................................................................................10-46

Subledger Accounting Description...............................................................................................................10-47

Subledger Accounting Benefits ....................................................................................................................10-49

Subledger Accounting Key Concepts ............................................................................................................10-50

Subledger Accounting Key Concepts Flow..................................................................................................10-51

Subledger Accounting Summary...................................................................................................................10-52


Agenda...........................................................................................................................................................10-54

Bank Statement Reconciliation Description ..................................................................................................10-55

Bank Statement Reconciliation Benefits ......................................................................................................10-56

Bank Statement Reconciliation Setup............................................................................................................10-57

Agenda...........................................................................................................................................................10-58

Multi-Org Access Control and Security Description....................................................................................10-59

Multi-Org Access Control and Security Benefits ..........................................................................................10-61

Guided Demonstration 1 Overview: Creating a Security Profile.................................................................10-62

Guided Demonstration - Create Security Profile .......................................................................................10-63

Guided Demonstration 2 Overview: Creating Security Grants.....................................................................10-66

Guided Demonstration - Create Security Grants .......................................................................................10-67

Multi-Org Access Control and Security Summary........................................................................................10-69


Agenda...........................................................................................................................................................10-71

Cash Pooling Description ..............................................................................................................................10-72

Creating Cash Pools.......................................................................................................................................10-73

Viewing and Updating Cash Pools ................................................................................................................10-74

Practices 5 and 6 Overview: Creating Cash Pools........................................................................................10-75

Practice - Create Notional Cash Pool ........................................................................................................10-76

Solution - Create Notional Cash Pool........................................................................................................10-77

Practice - Create Physical Cash Pool .........................................................................................................10-78

Solution - Create Physical Cash Pool ........................................................................................................10-79


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R12 Oracle Financials Functional Migration Fundamentals Table of Contents xviii

Summary........................................................................................................................................................10-81

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R12 Oracle Financials Functional Migration Fundamentals Table of Contents xix

Preface

Profile

Before You Begin This Course

• Functional knowledge of Oracle General Ledger

• Functional knowledge of Oracle Payables

• Functional knowledge of Oracle Purchasing

• Functional knowledge of Oracle Receivables

• Functional knowledge of Oracle Cash Management

Prerequisites

• There are no prerequisites for this course.

How This Course Is Organized

This is an instructor-led course featuring lecture and hands-on exercises. Online demonstrations

and written practice sessions reinforce the concepts and skills introduced.

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R12 Oracle Financials Functional Migration Fundamentals Table of Contents xx

Related Publications

Additional Publications

• System release bulletins

• Installation and user’s guides

• Read-me files

• International Oracle User’s Group (IOUG) articles

• Oracle Magazine

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Typographic Conventions

Typographic Conventions in Text

Convention Element Example

Bold italic Glossary term (if

there is a glossary)

The algorithm inserts the new key.

Caps and

lowercase

Buttons,

check boxes,

triggers,

windows

Click the Executable button.

Select the Can’t Delete Card check box.

Assign a When-Validate-Item trigger to the ORD block.

Open the Master Schedule window.

Courier new,

case sensitive

(default is

lowercase)

Code output,

directory names,

filenames,

passwords,

pathnames,

URLs,

user input,

usernames

Code output: debug.set (‘I”, 300);Directory: bin (DOS), $FMHOME (UNIX)

Filename: Locate the init.ora file.

Password: User tiger as your password.

Pathname: Open c:\my_docs\projectsURL: Go to http://www.oracle.comUser input: Enter 300Username: Log on as scott

Initial cap Graphics labels

(unless the term is a

proper noun)

Customer address (but Oracle Payables)

Italic Emphasized words

and phrases,

titles of books and

courses,

variables

Do not save changes to the database.

For further information, see Oracle7 Server SQL Language

Reference Manual.

Enter [email protected], where user_id is the

name of the user.

Quotation

marks

Interface elements

with long names

that have only

initial caps;

lesson and chapter

titles in cross-

references

Select “Include a reusable module component” and click Finish.

This subject is covered in Unit II, Lesson 3, “Working with

Objects.”

Uppercase SQL column

names, commands,

functions, schemas,

table names

Use the SELECT command to view information stored in the

LAST_NAME

column of the EMP table.

Arrow Menu paths Select File > Save.

Brackets Key names Press [Enter].

Commas Key sequences Press and release keys one at a time:

[Alternate], [F], [D]

Plus signs Key combinations Press and hold these keys simultaneously: [Ctrl]+[Alt]+[Del]

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R12 Oracle Financials Functional Migration Fundamentals Table of Contents xxii

Typographic Conventions in Code

Convention Element Example

Caps and

lowercase

Oracle Forms

triggers

When-Validate-Item

Lowercase Column names,

table names

SELECT last_name FROM s_emp;

Passwords DROP USER scott IDENTIFIED BY tiger;

PL/SQL objects OG_ACTIVATE_LAYER (OG_GET_LAYER (‘prod_pie_layer’))

Lowercase

italic

Syntax variables CREATE ROLE role

Uppercase SQL commands and

functions

SELECT userid FROM emp;

Typographic Conventions in Oracle Application Navigation Paths

This course uses simplified navigation paths, such as the following example, to direct you

through Oracle Applications.

(N) Invoice > Entry > Invoice Batches Summary (M) Query > Find (B) Approve

This simplified path translates to the following:

1. (N) From the Navigator window, select Invoice then Entry then Invoice Batches

Summary.

2. (M) From the menu, select Query then Find.

3. (B) Click the Approve button.

Notations:

(N) = Navigator

(M) = Menu

(T) = Tab

(B) = Button

(I) = Icon

(H) = Hyperlink

(ST) = Sub Tab

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R12 Oracle Financials Functional Migration Fundamentals Table of Contents xxiii

Typographical Conventions in Oracle Application Help System Paths

This course uses a “navigation path” convention to represent actions you perform to find

pertinent information in the Oracle Applications Help System.

The following help navigation path, for example—

(Help) General Ledger > Journals > Enter Journals

—represents the following sequence of actions:

1. In the navigation frame of the help system window, expand the General Ledger entry.

2. Under the General Ledger entry, expand Journals.

3. Under Journals, select Enter Journals.

4. Review the Enter Journals topic that appears in the document frame of the help system

window.

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R12 Oracle Financials Functional Migration Fundamentals Table of Contents xxiv

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Copyright © Oracle Corporation, 2007. All rights reserved.

Oracle Cash Management Chapter 10 - Page 1

Oracle Cash Management

Chapter 10

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Oracle Cash Management

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Objectives

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Agenda

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Bank Account Model Definition

Bank Account Model Definition

The new bank account model allow you to define and keep track of all bank accounts in the e-

Business Suite in one place and explicitly grant account access to multiple operating

units/functions and users. Bank accounts for internal use in Cash Management, Payables,

Receivables, Treasury and Payroll are consolidated in Release 12. If you were using internal

bank accounts in prior releases, all bank accounts will be migrated into the centralized bank

account model automatically during the upgrade.

UMX-based Security

The CE UMX Security Wizard is available under the User Management (UMX) responsibility.

The wizard helps you quickly define the legal entities available for a role. To launch the

wizard, log in as System Administrator, then in the User Management responsibility, go to

Roles & Role Inheritance.

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Bank Account Model Integration

Bank Account Model Interaction

In previous releases, Oracle Accounts Payable owned banks, bank branches and bank accounts.

Such bank accounts could also be used by Accounts Receivable. Payroll and Treasury,

however, had their own bank account models. In Release 12, banks and bank branches are

created as Trading Community Architecture parties. The bank accounts are associated with

Bank Branches but reside within the Cash Management application. During the bank account

creation, you will be able to define in which applications this bank account can be used.

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Bank Account Model Benefits

Bank Account Model Benefits

The new model reduces the number of access points to manage bank accounts by providing a

centralized user interface where all internal bank accounts can be set up.

Bank account access in the new model can be granted to multiple operating units, thus

eliminating the redundant duplicate bank account setup under different operating units in case

these operating units share the same bank account. This simplifies the reconciliation process

since now one bank account is the system corresponds to one bank account at the bank.

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Cash Management Security Components

Cash Management Security Components

Set up security for access to Cash Management activities by using components from different

applications. The specific steps required to secure access to your bank accounts depend on the

type of access you want to secure, the applications that you use for your business, and your

organization structure.

• Use the CE UMX Security Wizard to grant a role (responsibility) the ability to perform

bank account activities in the following areas:

- Use: View bank statements, reconcile cashflow transactions, work with cash

forecasting, cash positioning, and cash pools

- Maintenance: Create and update bank accounts

- Bank Account Transfers: Transfers funds from and to internal bank accounts.

• When creating bank accounts, specify the legal entity that owns the account and the

organizations that the account is used for (Payables, Receivables, Treasury, Payroll).

• Create security profiles to define the list of organizations that a user can access. Set up

security profiles in the following applications as needed:

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- MOAC: to define the list of operating units a user can access for Payables and

Receivables and be able to reconcile AP and AR bank statement lines.

- Cash Management: to define the list of organizations a user can access to reconcile

cashflow transactions. This security profile also allows users to access bank accounts

for cash forecasting, cash positioning, and cash pools if no other security profiles are

set up.

- Treasury: to define the legal entity that the Treasury user can access and be able to

reconcile Treasury bank statement lines.

- Payroll: to define the business groups a user can access and be able to reconcile

payroll transactions.

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Bank Account Model Summary

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Practice 1 Overview: Creating a Bank Account

Practice 1 Overview: Creating a Bank Account

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Practice - Create a Bank Account

Overview

In this practice, you will create a bank account.

Before creating a bank account, you need to create banks and bank branches.

Assumptions

• Replace XX with your terminal number or initials.

• You must have access to an Oracle Application Vision database or comparable training

or test instance at your site on which to complete this practice.

Tasks

• Create a bank

• Create a bank branch

• Create a bank account

Sign On

Responsibility: Cash Management, Vision Operations (USA)

1. Navigate to the Manage Banks and Branches page using the Setup: Banks menu.

Create a bank

The first step in the bank account creation is defining banks.

2. Define a bank.

Create a bank branch

The second step in the bank account creation is defining bank branches.

3. Define a bank branch for the bank you created.

• If you are using Oracle Treasury, link the bank branch to a counterparty in Oracle

Treasury.

Create a bank account

The final step in the bank account creation is defining bank accounts.

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4. Define a bank account.

• If you are using Oracle Payroll, add the newly created bank account to the Organization

Payment method.

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Solution - Create a Bank Account

Create a Bank

Responsibility = Cash Management, Vision Operations (USA)

1. Navigate to Manage Banks and Branches.

• (N) Setup > Banks > Banks

2. Click the (T) Banks and select (B) Create.

3. Select Create new bank and enter the following data:

Field Name Value

Country United States

Bank Name XXBank

4. Click (B) Save and Next.

5. (B) Create

6. In the Create Bank: Bank Address page, click (B) Create. Enter the following data:

Field Name Value


Address Line 1 500 Main Street

City Redwood Shores

County San Mateo

State CA

Postal Code 94065

Status Active

7. Click (B) Apply.

8. Click (B) Finish.

Create a Bank Branch

9. Select the (T) Bank Branches. Select (B) Create.

10. Enter United States in the Country field and XXBank in the Bank Name field and click (B)

Continue.

11. Select Create new branch and enter the following data:

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Field Name Value

Branch Name XXBranch

Branch Type ABA

12. In the Create Bank Branch: Branch Address page, click (B) Create. Enter the following data:

Field Name Value


Address Line 1 1150 Mission St

City San Miguel

County San Luis Obispo

State CA

Postal Code 93451

Status Active

13. Click (B) Apply.


Create Bank Account

15. Navigate to Manage Bank Accounts.

• (N) Setup > Bank Accounts

16. Click (B) Create.

17. Enter the following data and click (B) Continue:

Field Name Value


Bank Name XXBank

Bank Branch XXBranch

18. Select Vision Operations for the Bank Account Owner field.

19. Select Payables and Receivables for the Account Use field and click (B) Next.

20. In Account Details, enter the following information:

Field Name Value

Account Name XXBank Account 1

Account Number 99-1234-5678

Currency USD

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22. Select the cash code combination and enter the following information:

Field Name Value

Cash 01-000-1110-0000-000

Payables Matching Order Transaction

Auto Reconciliation

Tolerances (Payables)

Tolerance Amount

100

Auto Reconciliation

Tolerances (Payables)

Tolerance Percentage

10%


24. Click (B) Add Organization Access.

25. Select Payables and Receivables for the Account Use field.

26. Select Vision Operations for the Organization field and click (B) Continue.




30. Repeat steps 15-20 to create a second bank account, which you will use for a future practice.

Use the same values as above except for the following fields:

Field Name Value

Account Name XXBank Account 2

Account Number 22-1234-5678

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Bank Account Model Setup and Process

Bank Account Model Setup and Process

• Responsibility: Cash Management

• Navigation: Setup:Banks > Banks

The key setup steps are:

• Define Banks in Oracle Cash Management.

• Define Bank Branches in Oracle Cash Management.

If you intend to use this bank account in Oracle Treasury as a company bank account, switch to

that application, define Bank Counterparties and link them to Bank Branches that you have

created. If you do not intend to use this bank account in Oracle Treasury, skip this step and

proceed straight to the Bank Account definition.

At this point the system verifies your privileges for bank account maintenance. If you are

authorized to maintain bank accounts for this legal entity, you will be able to create your Bank

Accounts in Oracle Cash Management.

If you do not intend to use this bank account in Payroll, then the setup process is complete for

you. If you intend to use this bank account in Payroll, switch to that application and add this

bank account to the organizational payment method.

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Implementation Considerations


The bank new account model has several dependencies on other applications and centralized

features.

• There is a dependency on the Trading Community Architecture because this is where the

banks and the bank branches are stored.

• The organizational hierarchy comes from Human Resources.

• Finally, the General Ledger accounts that are assigned to the bank accounts are defined in

General Ledger.

• If you are using Payroll or Treasury, then the bank account set up depends on those

applications as well.

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Agenda

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Bank Account Balances and Interest Calculations Description

Bank Account Balances and Interest Calculations Description

In prior releases, bank account balances were only available as a part of the bank account

statement. The bank account interest calculation was only available for bank accounts set up in

Treasury. In Release 12, the functionality to keep track of the multiple bank account balance

types and calculate accrued interest is available to all internal bank accounts set up in the

centralized bank account model.

Not only can you enter the balances manually, but also you can import them automatically at

the same time when the bank statement is imported. In addition to the actual historic balances,

you can keep track of the projected balances. Such balances can be entered manually or copied

over from the Cash Position. You can then create reports that will compare the actual balances

versus projected, and you can accomplish it in either an onscreen report or via XML Publisher.

Finally, to simplify the bank account interest calculation, you can create reusable interest rate

schedules that will contain the interest rates and other interest calculation parameters. Interest

calculation features will work not only for stand-alone bank accounts but also for the notional

cash pools as well.

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Bank Account Balances and Interest Calculations Benefits

Bank Account Balances and Interest Calculations - Benefits

The new bank account model allows you to view bank account balances independent of the

bank statement, calculate accumulated interest on the fly, and create customized balance

reports.

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Bank Account Balances and Interest Calculations Maintenance

Bank Account Balances and Interest Calculations Maintenance

Once you have defined your bank accounts in the centralized bank account model, query them

in the bank account balance page and manage historical or projected amounts.

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Bank Account Balances and Interest Calculations Summary

Bank Account Balances and Interest Calculations Summary

In summary, the new centralized bank balance model gives you greater visibility into your

banking activities and allows you to easily create a variety of balance reports. In addition, you

can verify the bank account interest using the interest calculation tool.

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Bank Account Balances and Interest Calculations Setup

Bank Account Balances and Interest Calculations Setup

To obtain a balance report, create a report layout or a view and generate a report based on that.

To calculate interest on the bank account balance, create the interest rate schedules, tie them to

the bank accounts and use the interest calculator page to view the accumulated interest.

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Agenda

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Bank Account Transfers Description


In Release 12, you are able to create bank account transfers in Cash Management. The transfers

can be initiated, approved, settled and accounted for. The settlement is done through the

Payments application, while the accounting is done though the Subledger Accounting engine.

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Bank Account Transfers can be created manually by the user in the system. In addition, if there

are any physical cash pools defined in the system, the transfers can be created automatically

when the cash leveling process is run or when a bank statement with ZBA sweep lines is

processed.

With manual transfers, you have the option of creating and using a payment template. The

template will default the transfer information, such as the source and destination bank

accounts, currency, and payment method, and can be used in the same fashion as a repetitive or

semi-repetitive wire template created by your bank.

In cases when the settlement of the bank account transfer does not have to be initiated by the

system (for example, for ZBA bank account transfers that the bank processes on its own), there

is an option to exclude such a transfer from the settlement process and only create the

accounting entries.

Finally, the UMX security model lets you define who can create bank account transfers for

which legal entities. The settlement authorization function is also separate from the transfer

creation, so you can implement the separation of duties for bank account transfer management.

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Bank Account Transfers Benefits

Bank Account Transfers - Benefits

The bank account transfer functionality enriches the Cash Management functionality so that

you could take action on the projected closing balances calculated by the system. The seamless

integration with the Payments application allows you to send payment instructions to the bank

in a variety of payment formats and the integration with the Subledger Accounting allows you

to use flexible journal creation rules.

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Bank Account Transfers Process

Bank Account Transfers Process


• Navigation: Cash Management > Bank Account Transfers

Once the setup is in place, you can start creating the bank account transfer. If the system

parameter requires authorization, the bank account transfer must be authorized before it is

available for settlement or journal creation. Otherwise, you can proceed to settle or journalize

the bank account transfer immediately after creation and validation.

The Payments application formats your payment request and sends it to the bank. Any

exceptions in the payment process are communicated back in the form of an error status. If

settlement of the bank account transfer errors out, you can see the reason so that the cause of

the error can be rectified and the bank account transfer recreated. If the payment is processed

without any exception, you see a successful payment status returned.

The subledger accounting process creates journal entries according to your setup and you can

drill down to view these journal entries.

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Bank Account Transfers Dependencies and Interactions

Bank Account Transfers – Dependencies and Interactions

The bank account transfer feature depends on Payments application in cases where the

settlement of the bank account transfers is required. There is also a dependency on the

Intercompany setup when funds are transferred between different legal entities. Finally, all of

the accounting activity for bank account transfers happens in the Subledger Accounting

framework.

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Bank Account Transfers Summary

Bank Account Transfers - Summary

Bank Account Transfers allows you to create, settle and account for cash transfers between

internal bank accounts in Cash Management. The transfers can be done within the legal entity

or between two different legal entities. The transfers can be done in domestic or foreign

currencies. The feature allows you to manage your cash position more effectively and account

for the bank statement activity.

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Bank Account Transfers Setup

Bank Account Transfers Setup


• Navigation: Setup:System Parameters > (T) Cash Management Transactions

If you are using the cash leveling or ZBA features, the setup starts with the new system profile.

Then, optionally, you can set up Transaction Subtypes and Payment Templates for bank

account transfers. The Payment Templates are required if you intend to send the payment

instructions to the bank to process the bank account transfer. The Transaction Subtypes are

optional and can be used for reporting purposes.

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Bank Account Transfers Setup – Set System Profile

Bank Account Transfers Setup – Set System Profile

The new system profile option CE: Bank Account Transfers defines where the cash transfers

will be created as a result of the cash pool activity. If you choose Cash Management, then the

cash transfers created by the cash leveling or ZBA sweep activity are created in Cash

Management using the Bank Account Transfer framework. If you choose Treasury, then these

cash transfers are created in Treasury using Inter-Account Transfers (if both bank accounts

belong to the same legal entity) or Intercompany Funding transactions (if bank accounts belong

to different legal entities). Before Release 12, Bank Account Transfers could only be created in

Treasury. This functionality is preserved but now you have a choice.

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Practice 2 Overview: Setting Up Payment Templates

Practice 2 Overview: Setting Up Payment Templates

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Practice - Create a Bank Transfer

Overview

In this practice, you will create a bank transfer.

Assumptions




Tasks

Create a Transaction Subtype

Create a Payment Template

Create a Bank Transfer

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Solution - Create a Bank Transfer


1. (N) Setup:System > Transaction Subtypes

2. (B) Create and enter the following data.

Field Name Value

Subtype Name XX Transportation Expense

3. (B) Apply.


4. (N) Setup: System > Payment Templates


Field Name Value

Template Code XX Template One

Transaction Subtype Name XX Transportation Expense

Repetitive Code No

Currency USD

Source Bank Account Number 99-1234-5678

(Hint: There might be other

accounts with this number, so search

on your unique Bank Acount Name,

e.g., XXBank Account Name.)

Destination Bank Account Number 22-1234-5678

Transfer Amount 1000

6. (B) Apply.


7. Navigate to the Bank Account Transfers page.

8. (B) Create and select the following data.

Field Name Value


Payment Template XX Template One

Transfer Date Current Date

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9. (T) Payment Details

10. (B) Apply.

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Practice 3 Overview: Setting Up Bank Transfers

Practice 3 Overview: Setting Up Bank Transfers

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Practice - Create a Bank Transfer

Overview

In this practice, you will create a bank transfer.

Assumptions




Tasks




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Solution - Create a Bank Transfer


1. (N) Setup:System > Transaction Subtypes


Field Name Value

Subtype Name XX Transportation Expense

3. (B) Apply.


4. (N) Setup: System > Payment Templates


Field Name Value

Template Code XX Template One


Repetitive Code No

Currency USD

Source Bank Account Number 99-1234-5678

(Hint: There might be other

accounts with this number, so search

on your unique Bank Acount Name,

e.g., XXBank Account Name.)

Destination Bank Account Number 22-1234-5678

Transfer Amount 1000

6. (B) Apply.


7. Navigate to the Bank Account Transfers page.

8. (B) Create and select the following data.

Field Name Value


Payment Template XX Template One

Transfer Date Current Date

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9. (T) Payment Details

10. (B) Apply.

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Agenda

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Subledger Accounting Description


Subledger Accounting provides a common flexible framework for creating journal entries for

Bank Account Transfers and Bank Statement Cash Flows in Cash Management. Prior to

Release 12, Cash Management produced journal entries for bank statement activity based on

simple rules and sent them to the General Ledger interface. In Release 12, in addition to the

bank statement activity, a new source of accounting entries is available – bank account

transfers – and the rules for journal entry creation are more flexible and sophisticated. Finally,

you can now view all the journal entries produced by Cash Management events in Cash

Management.

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Subledger Accounting - Description

In Cash Management Release 12, bank account transfers and bank statement cash flows are the

two objects that can produce accounting events. Once the events are created and the accounting

program is run, the journal entry setup and the accounting configurations are referenced to

produce journal entries. The journal entries are then transferred to GL. GL has visibility into

the source transactions and Cash Management users can drill down from the transaction level

to the journal entry details.

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Subledger Accounting Benefits

Subledger Accounting - Benefits

The Subledger Accounting feature allows multiple accounting representations for a single

business event, resolving conflicts between corporate and local fiscal accounting requirements.

In addition, with subledger accounting you retain the most granular level of detail in the

journal entries, with different summarization options in the General Ledger, allowing full audit

and reconciliation

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Subledger Accounting Key Concepts

Subledger Accounting Key Concepts

Here are some key subledger accounting concepts:

• Event model is defined in SLA for each subledger represents the transaction/document

types and the lifecycle of each transaction:

- Event class classifies transaction types

- Event type defines possible actions on each event class with possible accounting

significance.

The journal creation rules are defined per event class/event type. In Cash Management, there

are two event classes: Bank Account Transfer and Bank Statement Cash Flow. An accounting

event for a Bank Account Transfer, for example, would be the creation or cancellation of a

bank account transfer. So, any time a bank account transfer is created, an accounting event is

created as well. Based on the rule setup, there may or may not be a resulting journal entry.

You may set up rules to generate journal entries for some events, but not for others.

Transaction object and sources are the data model for each subledger that contains the

transaction attributes/information made available to be used during journal rule setup and

journal entry generation.

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Subledger Accounting Key Concepts Flow

Subledger Accounting Key Concepts Flow

This chart represents the Cash Management application from the subledger accounting

perspective.

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Subledger Accounting Summary

Subledger Accounting - Summary

Subledger Accounting provides a common flexible framework for creating journal entries for

Bank Account Transfers and Bank Statement Cash Flows in Cash Management.

It allows complete visibility of the accounting activity, ability to create trial balances and create

flexible reports.

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This feature depends on the account definitions created in General Ledger.

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Agenda

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Bank Statement Reconciliation Description

Bank Statement Reconciliation – Description

In Release 12, Bank Transaction Codes can be linked to multiple sources. Previously each

bank transaction code had to be linked to a single source, such as Accounts Payable. This could

create an issue if the bank was using the same transaction code to report back a payment that

was initiated from an application other than Accounts Payable. In Release 12, you can link

bank transaction code to as many sources as you would like and also assign a priority number

used in the auto reconciliation for sequencing.

Reconciliation tolerances in Release 12 are moved from the system level to the bank account

level. This means that each bank account can have a unique set or reconciliation tolerances.

Moreover, there is now a distinction between tolerances for manual and auto reconciliation.

Furthermore, auto reconciliation tolerances can be unique for each source – Accounts Payable,

Accounts Receivable, Cash Management and Open Interface.

Finally, since now it is possible to use the same bank account, created in the centralized model,

in multiple organizations, the bank statement reconciliation is also done across Operating

Units.

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Bank Statement Reconciliation Benefits

Bank Statement Reconciliation - Benefits

The enhancements for the Bank Statement Reconciliation process allows you to improve

efficiency. By having granular level reconciliation tolerances and the ability to cross operating

units, you will increate straight-through processing success rate of the auto reconciliation.

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Bank Statement Reconciliation Setup

Bank Statement Reconciliation – Description

• Responsibility: Cash Management, Vision Operations (USA)

• Navigation: Setup > Banks > Bank Accounts

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Agenda

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Multi-Org Access Control and Security Description

Multi-Org Access Control and Security - Description

In Release 12, there is a new security model for internal bank account maintenance and usage

that incorporates existing security elements and provides more features. It is effectively made

up of two different rule sets: Bank Account Maintenance Security and Bank Account Access

Security.

Bank Account Maintenance Security secures the creation and update of bank accounts and

grants users the access to one or more legal entities. Users can create and update the bank

accounts whose owner legal entity is registered in the Bank Account Maintenance Security.

During bank account creation, the list of legal entities in Bank Account Owner LOV is be

restricted by this security. During bank account update, the user can only query the bank

accounts whose owner is registered in this security rule. The Bank Account Maintenance

Security is implemented using UMX data security model.

Bank Account Access security is created from the combination of Bank Account Access Setup

and Cash Management Security Profiles. Bank Account Access setup defines organizations

that can use the given bank account; whereas the Cash Management Security Profiles provides

the list of organizations an application user has access to. If there is at least one common

organization between Bank Account Access setup and Cash Management Security Profile, then

user will be granted an access to the bank account.

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Bank Account Access setup, which is a part of bank account definition defines the use of bank

accounts and organization that has access for each use. One or more operating units can be

assigned to Payables or Receivables use. One and only one legal entities can be assigned for

Treasury use and the legal entity that is assigned to Treasury use is always the same as bank

account owner Legal Entity. Lastly, one or more business groups can be assigned for Payroll

Use.

• Cash Management Security Profiles provides the list of organizations (Operating

Unit/Legal Entity/Business Group) that user has access to based on following four

different security rules: Bank Account Use security, Treasury security, MOAC security

and Payroll security.

- Bank Account Use Security grants user the access to one or more legal entities. Bank

Account Use Security setup is required to reconcile cash flows in bank statement

reconciliation. Bank statement lines can be reconciled against a cash flow only if

access to the cash flow Legal Entity is granted in Bank Account Use Security setup.

Bank Account Use Security setup is also required if user doesn’t have any MOAC,

Payroll or Treasury security set up, but wants to include bank accounts in Cash

Forecasting, Cash Positioning, and Cash Pool. Only those bank accounts whose

owner Legal Entity is registered in Bank Account Use security will be accessible in

these features. This is new in release 12.

- Treasury Security defined in Oracle Treasury application provides the list of legal

entities that Treasury user has access to. This was in place before release 12.

- MOAC Security provides the list of operating units that a given user has access to.

This is new in release 12.

- Payroll Security returns a business groups that a given user has access to based on

PER_BUSINESS_GROUP_ID profile option. This was in place before releaser 12.

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Multi-Org Access Control and Security Benefits

Multi-Org Access Controls and Security - Benefits

The new security model allows you to enable shares services operations since users can easily

switch access from one operating unit to another from a single application responsibility within

the explicit access boundaries. This will lead to increased efficiency as users can process data

and transactions faster for multiple operating units while not compromising any data access

privileges.

By viewing data from multiple operating units from a single responsibility, users have more

information which enables them to make better decisions.

The new security model allows you to be very explicit about what each user can do in any

functional area.

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Guided Demonstration 1 Overview: Creating a Security Profile

Guided Demonstration 1 Overview: Create Security Profile

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Guided Demonstration - Create Security Profile

Overview

In this guided demonstration, we will create a security profile.

Responsibility: Human Resources, Vision Enterprises

1. Log in using:

− User Name: operations

− Password: welcome

2. (N) Human Resources, Vision Enterprises.

3. (N) Security > Profile.

4. In the Security Profile window, enter the following:

Field Name Value

Name XXPayroll

Business Group Vision Corporation

View Employees All

View Contingent Workers All

View Applicants All

View Contacts All

View Candidates All

5. In the Organization Security Tab, enter the following:

Field Name Value

Security Type Secure organizations by organization hierarchy and/or organization list

Classification Operating Unit

Organization Name Vision Operations

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Save.

6. (M) View > Requests (B) Submit a New Request > (B) OK.

7. In the Submit Requests window, enter Security List Maintenance in the Name field and

enter the following parameters:

− Generate Lists for: One Named Security Profile

− Security Profile: XX Payroll

− Process: Current and Terminated people

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8. (B) Submit.

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Guided Demonstration 2 Overview: Creating Security Grants

Guided Demonstration 2 Overview: Creating Security Grants

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Guided Demonstration - Create Security Grants

Overview

In this guided demonstration, we will create security grants using the CE UMX Security Wizard.

Responsibility: User Management

1. Log in using:

− User Name: sysadmin

− Password: sysadmin

2. (N) User Management.

3. (N) Roles and Role Inheritance

4. Enter Cash Management in the Name field and click (B) Search.

5. Click (I) Update for the Cash Management, Vision Operations (USA) role.

6. On the Update Role: Cash Management, Vision Operations (USA) page, click (B) Security

Wizards.

7. Click (I) Run Wizard for CE UMX Security Wizard.

8. Click (B) Add Legal Entities. Select and add the following legal entities:

− Vision Operations

− Vision Corporation

9. For Vision Operations, select Use, Maintenance, and Bank Account Transfers check boxes

to grant Cash Management, Vision Operations (USA) access to view all bank accounts in

this legal entity, ability to create and update bank accounts, and the ability to reconcile bank

accounts.

For Vision Corporation, select the Use check box only. This role will only be able to view

and reconcile bank statement lines for cashflows for this legal entity.

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Multi-Org Access Control and Security Summary

Multi-Org Access Control and Security - Summary

The security model that existed before release 12 is still available and supported. However,

there is a number of enhancements to the security model in release 12 that allow you to be

more granular and explicit in the way the access and usage rights are granted. These

enhancements also empower your shared services centers since processes for multiple

organizations can be run without switching responsibilities.

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This feature depends on HRMS for organizational hierarchy and security profiles as well as

security setup in Treasury and Payroll.

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Agenda

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Cash Pooling Description

Cash Pooling Description

Cash leveling or Cash Pooling is a cash management technique aimed at optimizing the

balances of the internal bank accounts held at one or several banks. It is usually performed on a

daily basis and can be done by transaction or by total net end-of-day balances.

To perform cash leveling, you need to define a cash pool and assign internal bank accounts

setup in Oracle Treasury to the cash pool.

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Creating Cash Pools

Creating Cash Pools

A cash pool is a group of bank accounts with one or more concentration accounts and multiple

sub accounts. You can create the following two types of cash pools: notional cash pools and

physical cash pools.

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Viewing and Updating Cash Pools

Viewing and Updating Cash Pools


• Navigation: View > Cash Pools

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Practices 5 and 6 Overview: Creating Cash Pools

Practices 3 and 4 Overview: Creating Cash Pools

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Practice - Create Notional Cash Pool

Overview

In this practice, you will create a notional cash pool.

Assumptions




Tasks

Create Notional Cash Pool


1. Create a notional cash pool using the following data.

Field Name Value

Cash Pool Name XXCashPool

Concentration Account Select an existing bank from the LOV

Effective From Date Current Date

Effective To Date Year end Date

2. Add sub accounts to the cash pool.

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Solution - Create Notional Cash Pool

Create Notional Cash Pool


1. Navigate to the Cash Pools page.

2. Select Notional Cash Pool and Click (B) Go.

3. Enter the following data for the cash pool.

Field Name Value





Note: You can only select bank accounts that you have access to, that have not been

assigned to other cash pools, and for which the Interest Rounding and Interest Includes

options have been assigned as a part of the Interest Rate Schedule.

4. Click (B) Next.

5. Click (B) Add Sub Accounts.

6. Click (B) Next.


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Practice - Create Physical Cash Pool

Overview

In this practice, you will create a physical cash pool.

Assumptions




Tasks

Create Physical Cash Pool


1. Create a physical cash pool using the following data.

Field Name Value


Concentration Type One Account




2. Add sub accounts to the cash pool.

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Solution - Create Physical Cash Pool

Create Physical Cash Pool


1. Navigate to the Cash Pools page.

2. Select Physical Cash Pool and Click (B) Go.

3. Enter the following data for the cash pool.

Field Name Value





4. Click (B) Next.

5. Click (B) Add Sub Accounts.

6. Click (B) Next.

7. Click (B) Next.


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Summary

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