TCA (Trading Community Architecture) in R12 and Beyond

1. TCA (Trading Community Architecture) in R12 and Beyond October 16, 2012

2. Trading Community Architecture (TCA) • What is TCA and its background • TCA data model and its components • TCA in R12 and beyond • Why TCA matters Agenda

3. Competitor Partner Competitor of Partner of Customer /Organization Supplier Employee Supplier of Employee of • A Trading Community is… • The participants in a community and their relationship to one another What is TCA and its Background

4. TCA = Trading Community Architecture Provides a single, universal definition of trading partners across applications and job function TCA is an Data Model – it is not a Module What is TCA and its Background Oracle E-Business Suite Application Families* 3rd Party Systems Sales Service Marketing Financials HR TCA Enabling Infrastructure Common Party UI, DQM, D&B Integration, APIs TCA Data Model HZ Schema

5. A Trading Community Architecture… • is a way to understand who our trading partners interactwith inside and outside the enterprise. • puts a foundation in place for a trading partner model • Linking any and all types of relationships to entities • Models complex relationships • Enables 360 view of trading partners • Supports Business to Business and Business to Individual Customer Paradigms • Online Marketplace • Shared Service Centers What is TCA and its Background

6. How did TCA come about? • First introduced in 11i • Introduction of Oracle CRM application • Requirement for a common customer model for all Oracle Applications • Model evolved from working with ERP and CRM teams to create a view of the customer base which supports all flows throughout the E-Business Suite • To support both B2B and B2C business models. • Re-architected to enable future support for entire trading Community What is TCA and its Background

7. Guiding Principles of TCA • Create a central repository for the entire E-Business Suite to store information relating to all members of a trading community versus separate tables for each member • Prospects, Customers, Contacts, Employees, Partners, Distributors, Suppliers, Banks, etc. • Record complex business relationships between Trading Community entities (including 3rd party relationships) • Support all business models, industries, and geographies What is TCA and its Background

8. TCA Data Model AR (Customer) Organizations (Organization) AP/PO (Supplier) Old Model John, XYZ Inc ABC Co. John, XYZ Inc Party:ABC Co. Party: John, XYZ Inc. Customer of TCA Model Supplier of Supplier tables move to TCA Model

9. As we move towards the TCA for all the tables, if you have someone who is a customer and a supplier, you’re going to have to rationalize their definition. This means that you will now have one definition for that participant. Now you know that this customer owes you $X, while as a supplier, you are trying to pay them $Y If you’ve done any custom reporting or programming you may need to re-work as underlying data model has changed TCA Data Model: Implications

10. Party: defined as people, organizations, groupsor relationships. Represents the participants in the Trading Community. Account: defined as a financial roll-up point. Contact point: defined as any electronic point thatyou could use as a contact. For example, telephones,URLs, email addresses, etc. Location: a physical place. Relationship: establishes the relationship betweenany two parties. TCA Data Model: Major components

11. A party is an entity/participant that can enter into a business relationship • Person: A unique individual (dead or alive) of interest to the user. • Organization: A legal entity recognized by some government authority. • Group: A combination of two or more people, organizations or groups. • Relationship: User-definable link between two parties, regardlessof type. • A Party can belong to an unlimited number of relationships. • No duplication of entities TCA Data Model: Party Concept

12. The financial roll-up point to track a customer’s purchasesand payments. • Stores details about a customer relationship betweena Party and your business. • A Party may have one or more Customer Accounts. • Because a party and accounts are separate entities,no need to duplicate parties • Customer Account Sites: A Party Site that is used within the contextof a Customer Account (e.g., for billing or shipping purposes). • Customer Account Contacts: A Party Contact that is usedin the context of a Customer Account. TCA Data Model: Account Concept

13. Contact Point - An identifier for a method of contact(e.g., telephone, email, URL, fax, cell phone etc.)This can be applied to: • A Party (person, organization, group or relationship) • A Site or Location • A Party at a Site or Location • An entity may have one or more Contact Points. TCA Data Model: Contact Point Concept

14. Location - A physical place, usually with an address. • Any number of location types. (e.g., bill-to, ship-to, mail-to). • No duplication of address • Maintain Customer History per address • Maintain Important Install Base info • Party Site • Links a Party with a Location and describes the usage of that Location (e.g., mailing address, billing address, home address, etc.). • Parties may be associated to one or more Locations and any one location may have one or more uses. TCA Data Model: Location Concept

15. Relationship – Associates any two parties. • John is a customer of ABC Co. • John is a supplier to ABC Co. • TD Bank is a Competitor of Royal Bank • TD Brokerage is a Division of TD Bank • Has a Role – Specifies the nature of the relationshipbetween parties (e.g., bill to, pay to, member of, contact at, married to, Division of, Employee of). • Indicates the nature of the relationship • Tracks relationship history TCA Data Model: Relationship Concept

16. Logical Model and Entity Descriptions

17. TCA Data Model: Visualization PARTY SITE Bill to Ship to Division Of PARTY SITE PARTY SITE Bill to Ship to Bill to Ship to Account Account Account Acct Site Acct Site Acct Site Bill to, Ship to Bill to, Ship to Bill to, Ship to

18. From an application perspective, one of the most important things to understand about the TCA model is that the concept of “customer” is separated into two layers: The Party layer and the Account layer. When CRM applications refer to “Customer” they are referring to the Party Layer. On the other hand, when ERP applications refer to “Customer” they are referring to the Account Layer. Thus, confusion arises because both are using the word “Customer” to refer to two different things. TCA Data Model: Parties vs. Accounts

19. Public API’s for data manipulation of TCA tables Common Party User Interface Components Hierarchy Model Bulk Import of customer data and D&B Integration DQM for duplicate prevention Party and Account Merge Other Features of TCA

20. TCA Integration

21. New trading entities • Banks & Bank Branches • Suppliers • Legal Entity New TCA Features in R12

22. Cash Management Payments Global Tax Payables Purchasing -% TCA in R12: Leveraging centralized data model Party Information Governments, “Geographies”,Authorities, etc Banks and Branches Suppliers Trading Community Architecture Oracle Fusion Middleware ERP 3rd Party CRM

23. TCA in R12: Bank Account Model Trading Community Architecture (TCA) Cash Management Payables Bank Receivables Bank Branch Bank Account Payroll Treasury

24. New Bank Account Model • Central place to define internal bank accounts • Keep track of all bank accounts in one place • Explicitly grant account access to multiple operating units/functions and users • Multi-Org Access • In the new model, bank accounts are owned by Legal Entities with the option to grant account use to Operating Unit (Payables, Receivables), Legal Entity (Treasury), Business Group (Payroll) TCA in R12

25. OU A OU B Payments OU C Single Payment Instruction Bank Sub Ledger Accounting Invoices TCA in R12: Bank Account Model Pay invoices from different OUs with 1 instruction • New Payments Module • New Bank Module • New Bank & Credit Card Features

26. Reduce number of access points to manage bank accounts • Centralized user interface • Improve visibility and control of bank accounts • Multi-org access control • Simplify bank reconciliation • Single bank statement can be reconciled across multipleOperating Units • Increase percentage of automatically reconciled transactions • Bank account level reconciliation parameters add flexibility TCA in R12: Bank AccountModel Benefits

27. Supplier organizations are in TCA Terms of doing business with the supplier arein Purchasing / Payables Supplier organization, address, contact, phone, emailetc. are all in TCA Employees are already in TCA, Payables using the same employee records in TCA New supplier maintenance UI using TCA UI components TCA in R12: Supplier Representation

28. Single repository for suppliers data AR/AP netting Oracle Payments serves as a payment data repository on top of the Trading Community Architecture (TCA) data model. The TCA model holds the party information. Oracle Payments then stores all of the party’s payment information and its payment instruments (including credit cards, debit cards, customer bank accounts, and supplier bank accounts). TCA in R12: Benefits of Supplier Representation

29. TCA in R12: Supplier Data Mapping

30. Legal entity is created as a party of party type ORGANIZATION or PERSON An establishment is created as a party of party type ORGANIZATION. TCA creates a new classification category called “Business Function”. It is used mainly to model what business functions a party can perform in E-Business Suite For modeling legal entities and establishments in TCA, classification code “Legal Entity” and “Establishment” are created under the “Business Function” class category. An establishment is created as a party and always link to a party that is classified as a legal entity through the relationship model TCA in R12: Legal Entities

31. TCA creates the global view of person TCA enables you to store person Information at a corporate level Person is stored as party in TCA Comprehensive duplicate person check when entering a new person – Across the business group Propagate some information entered in one business group to the record in the other business group PER_ALL_PEOPLE_F.PARTY_ID is a foreign key to the HZ_PARTIES table, an integral part of Oracle's "Trading Community Architecture" (TCA). TCA in R12: Integration with HRMS

32. Architecture to model your customers and other trading partners as you see best for your business Architecture that will grow with your requirements Features to maintain extremely reliable customer information (e.g. ABC Co. is now sure that their supplier John of XYZ Inc is the same person as their customer, John of XYZ Inc) Glue that ties several E-Business Suite flows in a seamless way Customer Data Integration solution even if you are not running a single E-Business Suite module Platform that can play a key role in your IT landscape for Master Data Management Why TCA Matters: What you get

33. Take a close look at how you do business and how your business processes are most efficiently performed Ask questions about how you should model customer information e.g. which entities should be modeled as parties; when should you create an account; should you create multiple accounts for some parties; should you create multiple billing sites for an account; should you create account relationships Even if you are implementing few modules of E-Business Suite to start with, keep in mind the bigger picture about customer information Why TCA Matters: What you have to do