Part2. “Consistency is all I ask!”
Most of the uncertainty expressed in SROAUG R12 upgrade presentations surrounds the area of functional changes in R12 and the impact these changes will have on an R12 upgrade.
In R12 there are two types of functional changes those which are mandatory, as a part of the upgrade process these functional changes will be implemented. Other changes can be defined as optional and left to be taken up at a later point after the upgrade.
An example of a mandatory change, which causes more concern than the optional changes, is the implementation of SLA (Sub-Ledger Accounting). This is a very substantial change to the financial modules, but for most R12 upgrades will be a seamless part of the upgrade, as the existing rules in sub-ledger modules auto-accounting will be implemented directly in SLA.
There is no need to review and re-implement all your accounting rules, unless you have the need and or desire to do that. As one of Jade Global’s R12 upgrade clients put it “Seems like the data is pulled to the Ledger, rather than pushed from the Sub-Ledger as it was in 11.5.10” which from an accountant seems like a good simple way to describe the change.
As far as optional functional changes in R12 there are many, but a good example would be the E-Business Tax Engine. In previous releases there was no one unified place where the rules on how tax is calculated were substantiated and could be used to calculate tax on transactions. Many customers used external applications or ‘tax engines’, to calculate tax on transactions particularly in the US where Sales Tax is complex. So now there is a method to do this in the E-Business Suite, can you continue to use your existing external application, yes you can, can use a mixture of methods depending on the geography yes and for many that will be the immediate path forward is really a tidy version of the “Status Quo”.
So the uncertainty is understandable because there are many options, Jade Global can help by leveraging our R12 upgrade experience to help reduce the uncertainty, outlining mandatory and optional functional changes and helping to implement them in a cost effective manner.
Read the Blog Oracle R12 upgrade challenges