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Oracle Financials and Oracle Procurement Functional Upgrade Guide: Release 11i to Release 12
Release 12.1
Part Number E13482-03
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Oracle Public Sector Financials (International)

This chapter covers the following topics:

Overview

The Public Sector Financials (International) integrates with several products within the Oracle product family including Oracle General Ledger, Oracle Payables, Oracle Purchasing, Oracle Receivables and Oracle Subledger Accounting. Refer to the appropriate chapters of this guide to understand the detail-level integration of these products to Public Sector Financials (International).

This chapter details the additional impact to Public Sector Financials (International product:

Integration with Subledger Accounting

Release 12 introduces the new Subledger Accounting (SLA) module for managing accounting across subledger transactions. With the introduction of SLA, accounting rules are available to be modified within the SLA rule's definition, beyond the seeded subledger accounting methods for encumbrance with standard accrual and standard cash.

Encumbrances Setup Migration

The Subledger Accounting method is assigned at the ledger level. Based on the Release 11i setup, one of the following subledger accounting methods will be assigned to your ledger:

Accounting rules available in SLA mimic the Release 11i encumbrance accounting behavior. During the upgrade, the Payables System Options - Allow Adjustments to Paid Invoices option is deselected, if previously selected. The Allow Adjustments to Paid Invoices option must also be deselected. Selecting these options may result in incorrect accounting.

Encumbrances Data Migration

Encumbrance journals in general ledger will not be migrated to SLA journals. SLA accounting reports will combine data from both GL and SLA journals. During standard processing, the SLA application will detect if a journal exists in SLA or GL and use the appropriate rule to create the required accounting.

Multifund Receivables Setup Migration

Accounting rules available in SLA mimic the Release 11i Multifund Receivables (MFAR) accounting treatment and are available in the following Application Accounting Definitions:

Multifund Receivables Data Migration

The data migration is performed during the core Receivables upgrade.

Integration with Oracle E-Business Tax

In Release 12, Oracle E-Business Tax, a new product, will manage tax transactions across the E-Business Suite. In prior releases, the setup, defaulting and calculation of taxes for Payables was managed within Payables using tax codes, their associated rates and a hierarchy of defaulting options. This method of managing tax is still available in Release 12. During the upgrade, E-Business Tax migrates the tax codes and rates to corresponding tax rules to replicate Release 11i tax processing. This approach allows you to transition to the new E-Business Tax at your own pace and to incrementally add E-Business Tax rules to meet your requirements.

Implementing Payables and Receivables Netting

In Release 11i, Oracle Financials supported three netting solutions:

While these solutions provide netting functionality, each address a different specific need.

In Release 12, a new AP/AR Netting solution is introduced in the Oracle Financials Common Modules, which consolidates the three solutions and improves the functionality by creating one total-netting solution.

Multiple Organizations Access Control

Multiple Organizations Access Control is an enhancement to the Multiple Organizations feature of Oracle Applications. Multiple Organizations Access Control feature allows a user to access data from one or many operating units using a single user responsibility. Data security is controlled using the Multiple Organizations Security Profile, defined in Oracle HRMS, which specifies a list of operating units and determines the data access privileges for a user.

In Release 12, a new form Payables System Setup is introduced to consolidate the setup previously performed in the Payables Options or Financials Options forms. This new form will allow the setup of common Payables options that must be used across all operating units. If a conflict exists in the common settings across multiple operating units during the upgrade process, then the option will be set to the most frequently occurring setting.

Oracle Applications will not automatically create security profiles during the Release 12 upgrade. If you want to implement Multiple Organizations Access Control, define the security profiles, and then link them to responsibilities or users manually.

Obsolescence and Replacement of Features

The following Oracle Public Sector Financials (International) Release 11i features are obsolete in Release 12: