TCS Oracle EBS Delta R12 Finance Training

Program Case Study

v1.0

August, 2007

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Table of Contents:

BUSINESS REQUIREMENT..........................................................................................................................3

BACKGROUND:................................................................................................................................................3

MULTI-ORG PREFERENCES........................................................................................................................3

WHY Oracle R12 for Global Financial Management?............................................................................5

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 TCS Oracle EBS Delta R12 Finance Training Program
Case Study

CASE STUDY – Oracle R12 Financial Management

This case has been created for the classroom exercise only. This does
not relate to any customer or actual incident.

Business Requirement

ABC Inc wants to understand its customer better and achieve greater regulatory
compliance.

Background:

ABC Inc develops and operates fiber optic cable networks and hosting centers,
providing IP, internet, data, and voice services for business customers and
carriers. ABC INC tracks its services with call data records (CDRs); because each
traffic event results in a CDR, ABC INC generates several million such records
each month. The company bases invoicing on CDRs, and also evaluates them for
traffic measurement, invoice controlling, fraud detection, and other purposes. This
has to be reported to different regulatory bodies in different countries based on
the origination of the call.
ABC INC needed to gain a better control over its invoicing and reporting
customers’ billing patterns so that it could target profitable products and support
cross-selling initiatives. The company faced increasing internal demand for user
flexibility in data entry, decision-support information and reporting information.
To reduce the growing effort of analyzing file-based CDR data and to speed up
analysis of invoicing data from different billing systems, ABC INC decided to
introduce a centralized data warehouse and Oracle R12 for global financials
management.
The warehouse, called ABC INC star, is the information hub that collects all the
data from the various operational organizations. The consolidated data warehouse
gives groups at ABC INC an accurate history of transactions to use in their
analysis. It also gives users self-service access to critical data and can be interfaced
with Oracle R12 for invoicing and reporting purposes.

Multi-Org Preferences

This allows one to control the list of operating units they have access to. A system
administrator may create a security profile that has 10 operating units assigned
and assign it to one's responsibility. One can set up Multi-Org preferences to
restrict the list of operating units one would access at the user level. The user has
complete control over this and can change it at anytime. Most modules have
added the Preferences user interface to their responsibility menus. If one does not
see it, one can add that function to a menu. To enable and display Preferences in a
menu, add the function: FNDMOPREFS to your menu definition.

The Multi-org Preferences pages shows the user name that the user is logged in as,

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 TCS Oracle EBS Delta R12 Finance Training Program
Case Study

the responsibility name, and the Security Profile that you are currently assigned to
as defined by the MO: Security Profile profile option. The Default Operating Unit
region is where one can select a default operating unit. The List of values will
display all operating units assigned to the security profile. The next region called
Preferred Operating Units is where one would select the subset of operating units
one wants to work with.

Multi-Org or multiple organization access (MOAC) is basically the ability to

access multiple operating units from a single application responsibility. In Release
11i, when one had to enter or process data for multiple operating units, one had to
login to different responsibilities because each responsibility could only access one
operating unit. If one was managing Payables for Sweden, Norway and Finland
one needed to define three different responsibilities. In Release 12, one would
create a Security Profile and assign as many operating units as you required. One
can tie that security profile to a single responsibility using a profile option called
MO: Security Profile. For example, you could assign the security profile to the
EMEA Payables responsibility to allow that responsibility to process invoices
across all three operating units.

In Release 12, define a security profile in HR using the Security profile form or the
Global Security profile form, and assign all of the operating units that one would
want a responsibility to access. The one needs to run a concurrent request called
“Run Security List Maintenance” from HR which will make those security profile
available and allow one to assign them to a responsibility via a profile option
called MO: Security Profile.

One can define an operating unit using the Accounting Setup Manager in Oracle
General Ledger or Organization Definition form in Oracle HRMS or Inventory.
We shall discuss about Accounting Setup Manager in a future blog post. An
operating unit is then attached to a default legal context (as compared to Legal
Entity in Release 11i)

Define a security profile using either of the two forms: Security Profile form or the
Global Security Profile Form that is shown below. Both forms look almost
identical where Security Profile Form allows one to select operating units from
only one Business Group where as Global Security profile Form allows one to
select operating units from multiple Business Groups.

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 TCS Oracle EBS Delta R12 Finance Training Program
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One can define another profile option called MO: Default Operating Unit which is
optional and allows one to specify a default operating unit that will be the default
when you open different sub ledger application forms.

WHY Oracle R12 for Global Financial

Management?

ABC INC wanted its new solution to support ad hoc analysis, standard reporting,
and unknown analysis combinations it may require in the future, all through a
Web-based interface. It also needed to be sure nightly data loads would be
finished before office hours. Oracle met ABC INC’s requirement for performance,
scalability, and cost, and allowed the company to meet its business objectives.
Oracle R12 has significant changes in Financials to support global operations and,
in particular, shared services. In prior releases, operating units and sets of books
somewhat constrained the flexibility of deployment. Users could only be assigned
to a single operating unit, and sets of books were self-contained and managed by
users assigned to the set of books. In R12, users can be assigned to multiple
operating units, and processes and transactions can span operating units. Sets of
books no longer exist as a concept. Instead, entities now have "ledgers" that can be
combined into ledger sets for all processing. This enables multiple ledgers to be
updated from a single posting event, providing better support for environments
using multiple generally accepted accounting practices (GAAP). This is what was
required by ABC Inc that have to report regulated activities in a specific manner.
Another major change of introducing a single accounting engine to manage all
posting activities into the general ledger created the scalability of operations for
ABC Inc. Previously, modules such as Accounts Payable and Accounts Receivable
contained their own rules for posting accounting events to the general ledger. The
new subledger accounting module greatly simplified this process by storing
accounting entries in subledger tables that are standard across all products. It also
provided flexibility to the user in how the level of detail is posted to the general
ledger.

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