Lessions Learned in Upgrade to R12

Backgund:

• Oracle upgraded to R12 in January 2010 after the books were closed.
• It took 3.5 days to do the upgrade.
• Winrunner scripts were used for automated testing.
• Manual testing was done for the more complex modules.
• The upgrade added 1.3 terabits of data.
• Upgraded to R12 from Sep 09 - Mar-11.; Version 12.01 RUP2 and RUP3.
• Rehearsed pre and post upgrade steps.
• Oracle upgraded AP, AR, AP, OIE, GL, CM, Procurement, Workflow, AME, OM, etc...CRM apps were also moved from the CRM Suite e-Business Suite to Siebel.

R12 Upgrade Approach:

• Considered the project as a technical upgrade
• Only implemented mandatory functionality
• Migrated 8 years of SLA data
• Updated test plans
• Parallel testing
• Identify features that can be implemented prior to R12
• New features (TCA for customers) is mandatory in R12
• Implemented Multi-org access control
• Setup Ledger sets
• Replaced custom code with standard code
• Copy of the database prior to the upgrade

Project Management and Testing Strateg:

• Identified a Project Manager to oversee all of the upgrade activities
• Program office to work with both the functional and technical teams
• Full end to end testing
• Weekly meetings and status reports

Lessons Learned:

• Close out any open Workflow transactions. No transactions can be in transit.
• Make sure the interfaces are cleared
• Stop any pending or scheduled concurrent manager processes
• Update request sets
• Print off any reports used for reconciliation, print off before the upgrade. (IT should take the lead on doing this.)

Sub-ledger Accounting (SLA):

• SLA sits between the sub-module and the GL
• All sub-ledger data is stored in SLA
• SLA holds the true accounting and passes the summary to the GL
• Reconciliation reports will need to be redone based on the SLA tables.
• AR and PA autoacccouting rules will remain intact (except intercompany.)
• You can store alternative accounting in the SLA tables for transactions
• R12 has a feature for updating invalid code combinations
• Run Create Accounting (or Sub Accounting in AR) move the data from the sub-ledger to the SLA and the SLA to the GL.
• Oracle also suggests running the create accounting process throughout the month into SLA.
• Consider parallelization (multiple threads) with the create accounting process
• sub-ledger period close exceptions report (provides clear view of the exceptions.)

The Global Accounting engine (AX)

• All statutory SOB's become secondary ledgers
• Need to setup sequences
• Reports are all XML based in R12. Oracle suggested ramping up XML knowledge.

EBtax

• Tax setup is migrated from 11i to R12
• Clean-up your tax setup before the update
• Single global tax engine for AP and AR

Payments (AP)

• All payments format files are now XML. Any payment format files will not upgrade
• The 11i files will not upgrade
• New user interface

TCA (AR)
 

• Remove all code dependent on backward compatible views in R12
• New web-based interface for maintaining parties and party sites

Procurement and Iexpense

• Cleanup catalog, supplier data
• Consider any 11i per Diem and mileage schedules
• Remove any expenses that are in transit. They should all be paid or withdrawn.

Intercompany Accounting:

• Clean-up Intercompany rules
• Setup distribution accounting and clearing rules using R12 transaction account functionality

Customizations:

• Review your customizations and ensure they are still needed.
• R12 has many XML reports that can be easily updated by the user

Other considerations

• Ensure there is a monthend protocol
• Run create accounting daily
• Ensure a request set is created to include create accounting and the transfer to the GL as well as the exception report
• Ebtax and SLA are new shared modules
• PA: Post upgrade run the UPG: Upgrade transaction attributes program for historical transactions.
• IN AP, remember the Payments module is completely reworked.
• Volume test to find performance issues
• Scrambling of credit card data

Critical success factors

• Buy in from all stakeholders
• Detailed project planning and communications
• Multiple practice rounds of performing the upgrade
• Detailed inventory of patches
• Proper tracking of status and issue reporting
• Strong user involvement in all phases of the project. There are changes in business process and new forms. User should know how to use these forms.
• Focus on testing
• Robust end to end testing
• Document any reconciling items prior to the R12 upgrade

There is a white paper on Metalink called "R12 Best Practices." The presenter highly recommends this white paper.