By Jose F. Bastidas
Continuing our discussion from last week, I’d like to share with you the importance of three more new features and functions in Release 12 Oracle E-Business Suite Financial Applications.
E-Business Taxes
Oracle E-Business Suite Release 12 offers a global tax solution for “Order to Cash” and “Procure to Pay” flows. This feature utilizes centrally defined rules, rates, and jurisdictions stored in a Tax repository to calculate Taxes at a line level and offers strong audit capabilities using the Tax Record Repository. As a result, Oracle users no longer need similar tax codes scattered across multiple sub-ledgers.
E-Business Tax also integrates with 3rd party vendors like Sabrix, Vertex, and Taxware and provides support for VAT and other country-specific taxes.
Intercompany
In Oracle EBS 11i, the Intercompany features were known as Global Intercompany System. In R12, Oracle offers an Advanced Intercompany System (AGIS). AGIS can be configured to create invoices in payables and receivables based on intercompany transactions. Users enter transactions from one initiator to multiple recipients within a single batch. Pre-seeded Web ADI is also available to enter Intercompany transactions from MS Excel. With R12 Multi-Org Access Control (MOAC), users can initiate intercompany transactions for many trading partners without changing responsibility. The rules for approvals and notifications can also be customized using Oracle Approval Management Engine (AME), which allows users to add different approval hierarchies to meet unique approval requirements.
AP/AR Netting
In R12, the Contra Charge functionality has been optimized and changed into the AP/AR Netting functionality for payables and receivables. This provides the ability to reduce your receivables balances with the amount owed by your Organization in payables when the customer and supplier are the same and agrees to sign a Netting agreement. In addition, the matching of open receivables and open payables is automated. You can now determine whether you or your trading partner has a greater balance outstanding and update your books, collect payments or make payments accordingly.
The features described in this two-part article have enabled many Oracle R12 customers to realize benefits and ROI from an Oracle R12 environment. In addition, there are many other robust features, such as improvements in the AR Revenue Recognition process, the centralized use of bank accounts and parties, and the association of a bank within a single LE, thereby allowing AP to pay invoices from multiple Operating Units.
As you embark on your Oracle R12 project, be sure you choose the right Oracle implementation partner to help you achieve the full potential of Oracle R12. Project Partners has the resources and experience across industries to help you attain your R12 goals and realize the benefits of Oracle R12.
