Oracle Approvals Management (Approvals Management Engine - AME) with iProcurement

Jan 17, 2007

Manoj Desai Dharmang Purohit

. 2 .  TIBCO is recognized by top analysts for both market and technological leadership in service-oriented architecture (SOA) and business process management (BPM) domains.TIBCO Software Inc.  TIBCO Software Inc.tibco.  Visit www. TIBCO has given leading organizations around the world better awareness and agility— what TIBCO calls The Power of Now®.com for more information © 2007 UBEX Corporation and TIBCO Software Inc.500 customers. is a leading business integration and process management software company that enables real-time business.  With over 2.

.Presentation Objectives  Business Case  Feature Description  AME Components  Define Rule in AME  Terminology  Solution overview  Implementation steps  Benefits  Lessons learnt  Questions © 2007 UBEX Corporation and TIBCO Software Inc. 3 .

Business Case  Situation prior to AME implementation  Core purchasing approval structures within Oracle Purchasing based on:  Job  Department  Approval amount limits  Approval hierarchies maintained across 14 operating units.  Linear Employee/Supervisor approval hierarchy  Dummy job roles to facilitate budget review © 2007 UBEX Corporation and TIBCO Software Inc. 4 . .

Business Case  Major pain points  Maintenance issues  No possibility for creating global structure  Approval hierarchies had to be maintained across 14 operating units  Exceptions to Employee-Supervisor hierarchy were not handled easily  Approval cycle process issues  Inefficient budget review process – rejections require start from scratch  Project objectives  Determine an approval structure to be maintained on a global basis  Improve budget review cycle time © 2007 UBEX Corporation and TIBCO Software Inc. . 5 .

6 . .Business Case .ROI  Cost of NOT implementing AME  Manual data entry & testing to maintain 14 operating units – 8 hours per month  Data entry errors and recovery  Longer requisition approval turnaround time  Cost of implementing AME  Consulting .70 person days  TIBCO internal – 36 person days  Return  Manual data entry reduced by 95%  10% improvement in approval cycle time © 2007 UBEX Corporation and TIBCO Software Inc.

7 .Feature Description  What is AME?  Oracle Approvals Management (AME) is a self-service Web application that enables users to define business rules governing the process for approving transactions in Oracle Applications (where AME has been integrated).  AME is tightly integrated with Oracle Workflow © 2007 UBEX Corporation and TIBCO Software Inc. .

Define a rule in AME Components of Rule are: Attributes: requisition amount. 8 . department = 84200 Approval: Pre-approval group + direct hierarchy If Requisition Amount between 5001 and 25000 USD and Department = 84200 then require pre-approval from FA2 and approval in direct hierarchy up to absolute job level 6 Rule © 2007 UBEX Corporation and TIBCO Software Inc. department Conditions: 5001 <= requisition amount <= 25000. .

department. etc.)  Job Level = Approval Authority level associated while defining a job in Oracle HRMS © 2007 UBEX Corporation and TIBCO Software Inc. department)  Chain of authority = The main approval group or employee supervisor hierarchy  Post approval group = A post approval group which can approve requisitions after the initial chain of authority based on conditions (amount. .Terminology  Pre approval group = A group comprising of finance analysts responsible for budgetary approval (selected based on amount. 9 .

10 .5K Rule #2 Enter Requisition Rule #3 Enter Requisition Up to $10K Rule #4 Enter Requisition Up to 25K Rule #5 Enter Requisition Up to$50K Up to $5K Pre approval group Line Mgr Approval Line Mgr Approval Financial Analyst * Financial Analyst * Financial Analyst * Defined in AME Line Mgr Approval Line Mgr Approval Line Mgr Approval Mid Mgr Approval Sr Mgr Approval Director Approval Dept VP * Job Lvl 3 O r Mid Mgr Approval Mid Mgr Approval Mid Mgr Approval Sr Mgr Approval Director Approval Dept VP * Job Lvl 4 a c Job Lvl 5 l e Sr Mgr Approval Sr Mgr Approval Job Lvl 6 H R Director Approval Job Lvl 7 M S Chain of Authority Sr. .Global Purchase Requisition Approval Hierarchy Rule #1 Enter Requisition up to $1. Officer Job Lvl 8 Post approval group Corporate Controller Corporate Controller Defined in AME CFO © 2007 UBEX Corporation and TIBCO Software Inc.Solution Overview .

.Implementation Steps © 2007 UBEX Corporation and TIBCO Software Inc. 11 .

regardless of organizational changes. hence reduces the need for elaborate testing cycles  Intangible benefits derived from solution design  Reduced requisition approval turnaround times.Benefits  AME helps you maintain your business logic associated with approval transactions globally from single window  Lets you cut down approval related workflow customizations. . hence reducing the cost of ownership  Helps you leverage common expenditure policies across modules. thus consolidating your approval policy requirements  Any transaction is assured to be approved under the latest conditions. currency fluctuations or transaction data  Built-in testing utility to check the correctness of setup performed for both real-time and test transactions. thereby increasing the efficiency of our procure-to-pay process  Increased visibility of spending traits upfront to management chain © 2007 UBEX Corporation and TIBCO Software Inc. 12 .

13 . .Lessons Learnt…  A well defined purchasing expenditure matrix helps to establish a solid foundation for creating approval rules in AME  Gaps within employee-supervisor hierarchy with respect to job levels can extensively affect desired functionality  It is always a safe practice to close down all in-process requisitions before going live with AME implementation  Analyze the impact of your implementation with other applications already using AME and also with other applications using employee-supervisor hierarchy for approvals  Identify your exception handling strategy upfront in case of any errors encountered during calculation of approvers by AME  Identify your requirements for segregation of duties aspect (SOX). © 2007 UBEX Corporation and TIBCO Software Inc.

.ubex.com for more information  Enter for a chance to win Nintendo Wii !!! © 2007 UBEX Corporation and TIBCO Software Inc.Ubex Corporation  Ubex Corporation is a premier provider of end-to-end solutions based on Oracle Applications  Ubex is an Oracle Certified Partner  UBEX Booth  Visit Booth # 14 today or www. 14 .

. 15 .Q & A’s © 2007 UBEX Corporation and TIBCO Software Inc.

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