1. CONFIGURATION CONTROLS GOVERNOR for EBS R12 Upgrades May 2009 Oracle GRC Strategy – Barry Greenhut

2. 2 Costs and Risks Some EBS 11i setups change during the upgrade to R12; others are introduced in R12 Unnoticed and unwanted setup values can cause: Financial Loss Compliance Cost Audit Effort Key questions to ask: Which setups change when we upgrade? Which are new? If unnoticed or unwanted setup values are used, what costs arise? How can we reduce those costs?

3. 3 Which setups change when we upgrade? Which are new? R12 introduces important changes to the accounting model: Ledgers and Ledger Sets replace Sets of Books Subledger Accounting replaces Global Accounting Engine Taxes handled differently, by a new module: eBusiness Tax Closer relationship between tax setups and organization setups in another new module: Legal Entity Configurator

4. 4 Which setups change when we upgrade? Which are new? Some modules’ setups have undergone substantial change: General Ledger System Administration Purchasing / iProcurement Most other modules’ setups have seen at least minor additions, including: Alerts Application Object Library Common Modules Payables Receivables / iReceivables

5. 5 What costs/risks do we face? Financial Loss EXAMPLE: eBusiness Tax configuration leads to substantial undercollection of taxes that goes undetected for months. Consequences: Pay taxes due on behalf of customers, plus penalties. Compliance Remediation Cost EXAMPLE: Ledger Set configuration incorrectly allocates revenues amongst divisions. Consequences: Restate and refile quarterly results. Audit Remediation Cost EXAMPLE: Dozens of payment term mis-configurations are identified during external audit. Consequences: Internal audit team performs substantial research to provide proof of no ill effect.

6. 6 How can we reduce those costs/risks? Catch unexpected setup changes before you go live: 1.Compare Snapshots of your 11i production setups and R12 test setups – see what’s changed in your R12 setups 2.Carefully review Snapshots of new R12 setups 3.Adjust your R12 setups as needed before going live

7. 7 How can we reduce those costs/risks?

8. 8 Continue reducing costs/risks after the upgrade is complete Use CCG to track changes to key setups EXAMPLE: NYSE-traded energy sector corporation applied a production patch that reset vendor tolerances, and didn’t notice the change for nine months. Consequences: Internal audit team performed extensive work to prove there were no abuses, and external auditors performed substantial transaction examination. Use PCG to restrict changes to the riskiest setups EXAMPLE: Clerk at NYSE-traded food sector corporation changed bank account info without cross-check; $10MM transferred before fraud was discovered. Consequences: Money frozen pending investigation; public confidence shaken due to notoriety.

9. 9 Rapid CCG implementation with shrink-wrap support for… EBS R12 550+ setups EBS 11i 3,000+ setups PSFT HCM 8.8 400+ setups BASE ENGINE Alerts Application Object Library Common Modules System Administration FINANCIALS General Ledger Subledger Accounting Payables eBusiness Tax Legal Entity Configurator Receivables / iReceivables PROCUREMENT iProcurement Purchasing BASE ENGINE CONTRACTS CRM DISTRIBUTION FINANCIALS HR/PAYROLL MANUFACTURING PLANNING PROCUREMENT PROJECTS PUBLIC SECTOR BASE ENGINE HCM Benefits Compensation HR Payroll Pension Recruiting Stock Administration Workflow

10. 10 Alternatives to CCG Only CCG makes it easy compare 11i setups to R12 setups; no other product available today can do this Only CCG is quick to implement, thanks to its shrink- wrap support; no other product offers this today

11. 11 Summary When upgrading from EBS 11i to R12, unwanted setup changes can cause: Financial Loss Compliance Cost Audit Effort During the upgrade, avoid costs by using CCG to identify setup changes After the upgrade, use CCG to track changes to key setups, and PCG to restrict changes to the riskiest setups