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Oracle E-Business Suite R12.1 Financials Pre-Upgrade, Setup and Operational Tips
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Post-Upgrade Tips.......................................................................14
General Ledger................................................................................14
Overview .....................................................................................14
Setup Tips ....................................................................................15
Operational Tips..........................................................................15
Global Accounting Engine ..............................................................16
Overview .....................................................................................16
Planning Considerations.............................................................16
Subledger Accounting ....................................................................16
Overview .....................................................................................16
Planning Considerations.............................................................17
Operational Tips..........................................................................17
E-Business Tax.................................................................................19
Overview .....................................................................................19
Planning Considerations.............................................................19
Post-Upgrade Tips...................................................................... 20
Setup Tips ................................................................................... 20
Troubleshooting Tips................................................................. 20
Change Record............................................................................... 22
Oracle E-Business Suite R12.1 Financials Pre-Upgrade, Setup and Operational Tips
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Payables
Overview
Release 12 introduced Oracle Subledger Accounting, Oracle E-Business Tax,
Ledgers, Banks, and other common data model components that are used by
Oracle Payables.
The following Payables features are new as of Release 12:
Invoice Lines are introduced as an entity between the Invoice Header and
Invoice Distributions to better match the structure of invoice documents
and to improve the flow of information such as manufacturer, model and
serial number from Purchasing through to Assets.
Oracle E-Business Suite R12.1 Financials Pre-Upgrade, Setup and Operational Tips
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Banks, bank branches, and internal bank accounts are defined centrally
and are managed in Oracle Cash Management.
A new module called Oracle Payments now handles payments and all
funds disbursement activities.
Pre-Upgrade Tips
Just prior to the upgrade:
Run the Payables Accounting Health Check script (My Oracle Support Doc
ID 416699.1 to ensure that there are no inconsistencies in your 11i data.
Oracle E-Business Suite R12.1 Financials Pre-Upgrade, Setup and Operational Tips
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Setup Tips
Once you have set options for Automatic Offsets, do not change them.
Doing so would represent a major setup change that does not update past
transactions and would lead to accounting issues. A change in Automatic
Offsets should be considered as a project that includes full testing before
being implemented in your production system. Past transactions must be
cleared before such a change.
When defining new bank accounts, ensure that cash clearing and cash
accounts have been provided at the bank accounts control level.
Operational Tips
Regular Activities
Run the Invoice Validation program on a regular basis (at least daily) to
determine if there are invoices that are not getting validated. The best
practice is to schedule a concurrent request so that it runs daily at a time
when load is not high.
Run the Create Accounting program on a regular basis (at least daily) to
identify invoices that are not getting accounted.
When you make manual entries to the General Ledger, ensure that proper
descriptions are provided so that they can be tracked back as required
Oracle E-Business Suite R12.1 Financials Pre-Upgrade, Setup and Operational Tips
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Consider doing a mock closing at least 5 days before your actual close.
Check the exceptions report for any unusual activity, for example: Invoices
or Payments that should have been accounted but are still appearing in
the report, or Invoices that should have been validated but are still
appearing in the report.
Reconciliation-related Activities
After closing the periods in Payables and General Ledger, please run the
needed reports to balance within Payables. This would typically include
the Trial Balance, Posted Invoice Register, and Posted Payment Register
reports. Youll also need to run the Account Analysis in General Ledger
and reconcile that to Payables. Ensure that a monthly reconciliation is
performed. Track any unexpected data.
Payments
Overview
In Release 12, the Oracle E-Business Suite introduced Oracle Payments, a
configurable, robust and centralized engine for disbursing and receiving payments.
In addition to new features, Oracle Payments offers functionality previously
released as Oracle iPayment, which becomes obsolete starting with Release 12.
Oracle Payments provides a new formatting solution based on standard XML
technology. In previous releases, payment formats were created using proprietary
Oracle reports technology. In Release 12, payment formats are created as
templates in Oracle BI Publisher, and are applied to XML data extracts produced by
Oracle Payments.
Planning Considerations
The Release 11i iPayments setup is migrated to the Release 12 Payments module.
All Release 12 payment formats are BI Publisher-based; therefore, the 11i payment
formats are obsolete. Oracle seeds payment formats in Release 12 corresponding
to those that were seeded in 11i.
You may need to configure the seeded payment formats using BI Publisher to
satisfy the requirements of your banking partners. This configuration involves
modifying the format files, and then sending them to your banking partners for
Oracle E-Business Suite R12.1 Financials Pre-Upgrade, Setup and Operational Tips
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validation. You may need to repeat this process a few times before your format
files are validated, so ensure that you allocate enough time. For more information
on upgrading your Release 11i payment formats, see My Oracle Support Doc ID
549024.1.
Post-Upgrade Tips
In Release 11i, bank accounts were not centralized and customer bank
accounts were stored in Receivables tables. Oracle iPayment was
leveraged only for credit card transactions. The Receipt remittance is
done by a format program in Oracle Receivables. In Release 12, Oracle
Payments is required for remitting receipts since bank accounts are
centralized in Payments. Therefore, the minimal Payments setup (for
Payee, Payment System, Funds Capture Process Profile, and so on) is
required in Release 12 for the remittance of receipts.
A user can create dummy Payments setup per the following My Oracle
Support articles:
o
Internet Expenses
Overview
Release 12 changes to Oracle Internet Expenses include:
Per Diem and Mileage Per diem and mileage transaction data are not
migrated. However, per diem and mileage setup data is automatically
upgraded.
Expense Reports Expense Reports that were created prior to the upgrade
display information in a pre-Oracle Internet Expenses minipack (11i.OIE.K)
format. Newly created expense reports use the new user interface.
Integration with Oracle E-Business Tax The integration with Oracle EBusiness Tax has no direct tax upgrade impact. Tax lines run through
Oracle Payables.
Oracle E-Business Suite R12.1 Financials Pre-Upgrade, Setup and Operational Tips
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Planning Considerations
Prior to the upgrade, its important to review your catalog data. A recommended
pre-upgrade procedure for identifying and fixing exceptions in your catalog data is
documented in the Reducing Downtime appendix of the Oracle Applications
Upgrade Guide: Release 11i to Release 12.0.x.
You should also remove duplicate suppliers and sites from your supplier data prior
to the upgrade to reduce the number of parties created in Trading Community
Architecture (TCA).
Consider implementing Multiple Organization Access Control (MOAC) for those
responsibilities that are new with Release 12 and designed to be MOAC, for
example, the supplier profile administrator for creating and managing suppliers.
Although the Release 11i per diem and mileage schedules are migrated to Release
12, detailed testing is recommended.
With Release 12, entering and viewing project information in Internet Expenses
changes. Be sure to address these changes in your user training.
Pre-Upgrade Tips
In Release 12, the address for the Employee Supplier cannot be changed; it
is the address in HRMS that is used for making payments to employees.
Before you upgrade, make sure that the address for the Employee Supplier
is the same at the Supplier Site and in the HRMS application.
Post-Upgrade Tips
In Release 12, tax is always marked as inclusive for the expense report
lines containing a Tax Code. When entering an expense report, a user
should enter an amount that is inclusive of the tax amount for the expense
line.
Setup Tips
Oracle E-Business Suite R12.1 Financials Pre-Upgrade, Setup and Operational Tips
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Planning Considerations
In Release 12, suppliers are modeled in the Trading Community Architecture (TCA),
and there is a new user interface for maintaining suppliers. Backward-compatible
Receivables views to customer and supplier tables no longer exist, so if you have
custom reports running against those views, plan to modify them to run against the
TCA tables.
Setup Tips
Model your customer accounts and sites according to the best practices
recommended in the white paper, Oracle Trading Community
Architecture: Modeling Customer and Prospect Data TCA Best Practices,
My Oracle Support Doc ID 164519.1.
Submit the Create Accounting program in draft mode and review the
accounting before submitting in final mode and posting to the General
Ledger.
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Run the Create Accounting program on a regular basis (at least daily) to
identify invoices that are not getting accounted.
Operational Tips
Performance-related:
You can run multiple instances of the Late Charges program for specific
operating units. The number of parallel workers can be used to distribute
the processing load for the Late Charges program instance across multiple
jobs or workers, resulting in faster generation of your finance charges.
Reconciliation-related:
Review the Un-posted Items reports to confirm that all items are posted to
the General Ledger.
Oracle E-Business Suite R12.1 Financials Pre-Upgrade, Setup and Operational Tips
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Run the Potential Reconciling Items Report to view items that might have
accounting setup errors. This report suggests journal items that might
potentially post to General Ledger accounts with unexpected account
types, thus creating reconciliation issues in General Ledger. When a
potential reconciling item is an error, correct the individual transaction as
well as the incorrect setup to prevent future occurrences of the error.
Run the Journal Entries Report after completing Create Accounting (Final
Accounting) to show the accounting data transferred to Subledger
Accounting. This should be matched with the AR Reconciliation Report to
ensure that Receivables versus Subledger Accounting reconciliation is
done.
Advanced Collections
Overview
The Collections Workbench module in Oracle Receivables is obsolete and is
replaced with comparable functionality in Oracle Advanced Collections. This
includes functionality relating to customer interactions and correspondence,
transaction processing, and dunning activities. With Release 12, additional features
such as scoring, collections strategies, enhanced payment and promise processing,
Oracle E-Business Suite R12.1 Financials Pre-Upgrade, Setup and Operational Tips
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automated promise tracking, and automated collector work assignment are also
available.
Planning Considerations
Receivables users who have not purchased a license for Advanced Collections are
not authorized to use the full feature set of this product. The Receivables
Collections Workbench has been replaced with a limited version of Oracle
Advanced Collections for Oracle Receivables. Details on the collections features
available in Receivables and the features available in Oracle Advanced Collections
are provided in My Oracle Support Doc ID 389443.1.
Assets
Overview
In Release 12, Oracle Assets adds Subledger Accounting (SLA) functionality. By
default, transactions in the current fiscal year in Assets books will have their
accounting lines migrated to the Subledger Accounting model. Accounting for
current period depreciation will be upgraded only if depreciation has already run
for the period, and the period remains open. After the upgrade, you can run the
SLA post-upgrade process to update accounting for past transaction data as
needed.
Operational Tips
If you are using multiple asset books that link to the same ledger, ensure
that the natural account segment value of the asset clearing account is
unique for each asset book.
Once Group Asset Advanced Rules options are defined, you cannot change
them. Review group asset options carefully to determine which ones satisfy
your requirements for accounting and tracking of group and member
assets.
Oracle E-Business Suite R12.1 Financials Pre-Upgrade, Setup and Operational Tips
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Planning Considerations
All GIS setup and transaction data are moved to the AGIS data model. Its a good
idea to review existing 11i intercompany rules and update them as necessary
before the upgrade.
Post-Upgrade Tips
General Ledger
Overview
In Release 12, Oracle General Ledger is significantly enhanced to support multinational companies and shared services centers. These changes allow you to
maximize processing efficiencies while maintaining a high level of information and
setup security.
You can perform simultaneous accounting for multiple reporting requirements.
You can also gain processing efficiencies by setting up, accessing, and processing
data across multiple ledgers and legal entities from a single responsibility. In
addition, General Ledger definitions - such as Mass Allocations and Financial
Statement Generator (FSG) reports - can be more easily shared and secured across
your organization by allowing you to restrict certain users from viewing or updating
these definitions or from using them in processes.
Many global features that were previously available only in localized versions are
included in Release 12 of General Ledger.
Terminology Changes:
Sets of books is replaced by ledgers. All sets of books options are now called
ledger options. The upgrade retains all Release 11i settings.
Multiple Reporting Currencies (MRC) is replaced by Reporting Currencies.
Reporting sets of books are replaced by reporting currencies. Reporting sets of
books assigned to primary sets of books automatically upgrade to reporting
currencies that are assigned to a primary ledger. All conversion options for
Multiple Reporting Currencies are retained as part of the reporting currency
definition.
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Setup Tips
Ensure that the date range for your calendar includes the 29 day of
February in leap years. Check the calendar validation report before using
the calendar for setting up ledgers. You can change any of a period's
specifications, except for the period type, so long as the period has not
been used for transaction processing in General Ledger or in the
subledgers. You cannot change a calendar period that is open, closed,
future enterable, permanently closed, or is included in an open budget or
encumbrance year.
Do not freeze the journal source if you intend to correct journals from the
source during import into General Ledger.
Ensure that you are assigning correct balancing segment values to ledgers
in the Accounting Setup Manager. Once you assign them, you can enddate the assignment, but you cannot un-assign them.
Ensure that you have defined a Tax Recoverable/Liability account for tax
rates that you plan to use in General Ledger. The system will generate a
tax line only if a Tax Recoverable/Liability account is defined for your
ledger for the tax rate in E-Business Tax.
Ensure that you disable the legal entity balancing segment value
assignment whenever you disable the legal entity.
Ensure that the start date of an organization type is set to a valid date
before creating the operating unit in the Accounting Setup Manager.
Ensure that you run the General Ledger Setup diagnostics test to validate
your overall setup of General Ledger.
th
Operational Tips
Run the Segment Value Inheritance Program when changes are made to
the segment qualifiers for segment values of the chart of accounts.
Before you consolidate your subsidiary ledger to a parent ledger for the
first time, and before you try to run translation from the consolidation
Oracle E-Business Suite R12.1 Financials Pre-Upgrade, Setup and Operational Tips
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workbench, ensure that you have run translation on the subsidiary ledger
at least once.
Set the status of the first accounting period in the new fiscal year to
Future Entry. Do not open the first period of the new fiscal year until all
of the year-end processing for the last period of the current year has
completed.
Close the period in your subledgers before closing the period in General
Ledger. This will prevent subledgers from posting entries to a closed
period.
If you are using a calendar with an adjusting period that represents the
last day of the fiscal year, close the current period and open the adjusting
period. Create and post adjusting entries and accruals in the adjusting
period.
If Mass Allocation is not creating any journal entries, check for any invalid
or end-dated account combinations used in the Mass Allocation formula.
If yes, either enable the account combinations, or modify the Mass
Allocation formula to exclude them.
Run the General Ledger Period Closing diagnostics test to verify that a
ledger period is ready to close.
Subledger Accounting
Overview
Oracle Subledger Accounting (SLA) provides a common accounting engine that
replaces the existing accounting processes in the different Subledger applications.
The SLA upgrade involves migrating existing accounting data between 11i and
Release 12 to ensure a continuous business operation. Depending upon your
business requirements, existing accounting data may have different implications.
For the purposes of this discussion, accounting data is defined as:
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All data that has accounting relevance for the customer, including journal entries,
balances, base transactions that have generated journal entries, and related
information, such as accounting events and setup information.
While the default accounting continues to be stored in the Subledger applications,
the new SLA module is where the true accounting is held. SLA is a behind the
scenes module, largely transparent to end users except when they run the Create
Accounting program to create Subledger accounting entries and to transfer journal
entries.
Planning Considerations
The upgrade team should fully understand SLA functionality and closing processes,
which vary slightly by application.
Receivables and Project Accountings auto-accounting rules are migrated to
Release 12, where they are represented as default SLA rules. Run transactions
through to confirm that your auto-accounting rules are correctly reflected in the
SLA tables.
Map custom reports, such as custom reconciliation reports, to the new SLA tables.
Upgrading Subledger Accounting Data
During the upgrade, existing accounting data from the subledgers is upgraded into
the new SLA data model. By default, the upgrade updates the data for the current
fiscal year, as well as the necessary periods of the previous fiscal year, to ensure
that at least six periods are included in the upgrade.
You can change the amount of historical accounting data to be upgraded to SLA as
a pre-upgrade step. For example, you can specify that a larger range of periods be
upgraded.
This is an important decision because some SLA functionality relies on the existence
of previous accounting data. For example, if you need to cancel invoices from two
years ago, then you need to upgrade at least two years of accounting data to SLA.
However, you have the flexibility to limit the amount of Subledger data you update
during the upgrade to reduce downtime and save on disk space. If you do not
update all of your accounting data during the upgrade downtime, you can perform
additional updating at a later point, either during daily business operations, or
during a subsequent downtime. Review the document called R12: FAQ for the SLA
Upgrade: SLA Pre-Upgrade, Post-Upgrade, and Hot Patch -- Doc ID 604893.1, for
more information about the SLA Pre-Upgrade, Post-Upgrade, and Hot Patch.
Operational Tips
Review the Period Close Subledger Exception Report
The General Ledger period can be closed even if there are exceptions in the
transfer of journals from Subledger Accounting. Review the Period Close Subledger
Oracle E-Business Suite R12.1 Financials Pre-Upgrade, Setup and Operational Tips
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Oracle E-Business Suite R12.1 Financials Pre-Upgrade, Setup and Operational Tips
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invalid account code in Subledger Accounting data, which in turn allows General
Ledger to find a valid account code and for import to proceed without error.
Account replacement is also performed for non-Oracle journal sources during the
import process. However, since a retrospective fix to an account code can cause
Subledger application data to get of synch with Subledger Accounting and General
Ledger data, it is best to avoid the situation altogether by adopting practices for
maintaining account code consistency.
Oracle E-Business Tax provides the
infrastructure for transaction tax
knowledge management and
delivery using a global system
architecture that is configurable
and scalable for adding countryspecific tax content.
E-Business Tax
Overview
Oracle E-Business Tax provides the infrastructure for transaction tax knowledge
management and delivery using a global system architecture that is configurable
and scalable for adding country-specific tax content. As the single point solution
for managing transaction-based tax, Oracle E-Business Tax uniformly delivers tax
services to all E-Business Suite business flows through one application interface.
Oracle E-Business Tax consists of a tax knowledge base, a variety of tax services
that respond to specific tax events, a set of repositories (for tax content and tax
recording) that allows customers to manage their local tax compliance needs in a
proactive manner, as well as the ability to integrate with external tax providers
through a single integration point. In short, Oracle E-Business Tax is the global and
consistent compliance repository that encapsulates fiscal and tax rules in a single
point solution for tax events that is easy to integrate, extend and implement. EBusiness Tax replaces the following tax solutions available in 11i:
Planning Considerations
In Release 11i, tax setups were defined separately in various products. In Release
12, tax setup and calculation have been centralized. Your tax manager, who knows
your organizations current and future tax needs, should be responsible for
configuring the tax setup.
During the upgrade, Release 11i tax setups are migrated to Release 12. While you
may not choose to utilize the new/advanced features of E-Business Tax
immediately after your upgrade, Oracle recommends that you familiarize your tax
users with the key E-Business Tax features and start taking advantage of them.
Test tax scenarios for all of your countries after the upgrade. In Payables, ensure
that you test your invoice sources (XML, iSupplier, flat file, and manual) to confirm
that each can automatically derive the correct tax regime-to-rate information.
Also, standardize your Release 11i customer and supplier tax setup before your
upgrade, as this will help to ensure that tax is derived correctly in Release 12.
Oracle E-Business Suite R12.1 Financials Pre-Upgrade, Setup and Operational Tips
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Post-Upgrade Tips
After the upgrade, you can still provide the tax codes in transactions and
also use defaulting hierarchies and tax groups in the same manner as you
did in Release 11i without changing your setup. Over time, you can
incrementally update your migrated tax data to gradually move from your
Release 11i tax code model to the E-Business Tax regime-to-rate and tax
rules model.
E-Business Tax provides users the flexibility to share a tax setup across
multiple Operating Units/Legal Entities, or to restrict it to a particular
Operating Unit/Legal Entity. You must decide which setup is appropriate
for your enterprise.
Setup Tips
If the Configuration Owner tax option is not created or is not active for a
specific combination of application, event class, and first party Legal
Entity/Operating Unit, then the defaults are taken from seeded Event Class
settings.
You can run a transaction in the Tax Simulator to check your tax setup. The
Tax Simulator should be used after any change to your tax setup to test
multiple what-if scenarios without affecting the transaction database.
Troubleshooting Tips
Users may report E-Business Tax problems in the following categories:
Avoid these E-Business Tax problems by following the general, offset tax, and
irreversible options setup tips below:
Oracle E-Business Suite R12.1 Financials Pre-Upgrade, Setup and Operational Tips
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General:
Check whether all the required setups are effective on the transaction
date.
STCC
If Party Tax Profile is changed, ensure that the Tax Applicability flag is
checked.
If the user has subscribed the Regime to a Legal Entity, then in the Party
Tax profile for the Operating Unit, the Allow subscription of Legal Entity
flag should be checked. This should be carefully done, as it is an
irreversible setting.
Define all the required Tax Accounts based on your tax setup in the Tax
Rate to avoid errors during transactions.
Check that the Configuration Owner Tax Options for the Event Class allows
for tax exemptions to be considered.
Check that you have completed the setup for all the required set up tasks
listed in the E-Business Tax Home Page.
Use the available Diagnostic scripts to identify any tax setup issues.
Check that Allow Offset Taxes is enabled in the Party Tax Profile for the
Offset Taxes.
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Irreversible Options:
Note that the following setup changes are irreversible:
The Use Subscription of the Legal Entity box in the operating unit party
tax profile - This flag should be checked if the Regime is subscribed to the
Legal Entity.
The Make Tax available for transactions option in the Tax, if enabled,
cannot be updated.
Change Record
Date
Author
Version
Change Reference
09-Jun-2008
Anne Carlson
1.0
11-Jun-2008
Anne Carlson
1.1
17-May-2010
Anne Carlson
01-Jun-2010
Chris Cianciolo
1.2
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