Maggie Driscoll

Business Applications Controller

Director - Finance
Cap Gemini Ernst & Young

Using Oracle Projects

for Flexible Business
Management

The Strategic View Background

Oracle Products Background
Oracle 10.7 system within Cap Gemini (Implemented from 1996)
General Ledger, Accounts Payable, Accounts Receivable, Fixed
Assets, Cash Management, Project Billing & Costing

Human Resources & Payroll (Implemented in 1998)

iProcurement (Implemented in July 2002)

Current
All of above now on Release 11i

The Strategic View Background

Company Background
Complex Business Issues
Merger of Cap Gemini and Ernst & Young Consulting & Gemini, May
2000

Future
Release 12
Working closely with Oracle on future product pre-releases, including
project management/collaboration

Self Service Human Resources

Challenge: Business Management

Internal Cause:
Reorganisations
Acquisitions
Joint Ventures

Multi Vendor & Customer Environment

Fragmented Business Information
Cost to run Multiple Systems

Challenge: Operational Efficiency

Cause :
Reorganisations
Acquisitions
Joint Ventures

High Application Roll Out Costs

High Training Costs
Unable to maintain 5 day Close
Cannot view Projects across Legal Entities

Challenges: Global Operations &

Financial
Business Intelligence/Information:
Increase in demand for analysis of data &
information in challenging times
Invoicing:
Internal Complexity vs. Customer contracts
Multi Currencies
Global deliveries

Cap Gemini Ernst & Young UK & Ireland

Reorganisations & Joint Ventures 4 Entities
5 Independent Systems
EY Consulting UK
+
Cap Gemini
UK
+
Gemini Consulting
UK
EY Consulting IRE
+
Cap Gemini
IRE

1 Instance

Cap Gemini Ernst

& Young UK
Telecom UK
Telecom IRE
Cap Gemini Ernst
& Young IRE

Cap Gemini Ernst & Young UK &

Ireland Challenges: Year 2000
Business Management
Reorganisation/ Acquisition/Joint Venture
Multi Vendor & Customer Environment
Fragmented Business Information
Cost to run Multiple Systems
Operational Efficiency
High Application Roll Out Costs
High Training Costs
Unable to maintain 5 Day Close
Cannot view Projects across Legal Entities
Global Operations & Financial
Business Intelligence
Multi Currency Invoicing

Solution :
Oracle 11i
Upgrade

Financials
Project Costing
Project Billing

CGEY Oracle Projects &

Ledgers
OPAL

Oracle Projects & Ledgers

CUSTOMERS

Hyperion
Hyperion

E-Procurement

WORKFLOW

Cash
Mgt

AR
PA
SIEBEL

AP

Fixed
Assets

GL

DTX
HR /
HR /
Payroll
Payroll

RETAIN

Oracle Projects & Ledgers

FDC
Hyperion

CUSTOMERS

E-Procurement

WORKFLOW

Cash
Mgt

AR

Vendor
Invoices

PA
SIEBEL

AP Costs

Employees

AP
AP Costs

Fixed
Assets

GL

Salaries etc.

DTX
HR /
Payroll

RETAIN
Employees

Oracle Projects & Ledgers

FDC
Hyperion

CUSTOMERS
Billing

E-Procurement

Billing

Cash
Mgt

AR
PA
SIEBEL

Timecard
& Expenses

Vendor
Invoices

Billing
AP Costs
Billing
Revenue
Charges / Recoveries

Employees

WORKFLOW

Fixed
Assets

AP
AP Costs

GL

Salaries etc.

DTX
HR /
Payroll

RETAIN
Employees

Oracle Projects & Ledgers

CUSTOMERS

Hyperion
Billing

Billing

PA

SIEBEL

Fixed
Assets

AP
AP Costs

GL

Salaries etc.

DTX
On-Line
Authorisation

Vendor
Invoices

Billing
AP Costs
Billing
Revenue
Charges / Recoveries

Employees

WORKFLOW

Cash
Mgt

AR

Sales
Funnel

Timecard
& Expenses

E-Procurement

Upload

HR /
Payroll

RETAIN
Employees

Oracle Projects & Ledgers

CUSTOMERS

FDC
Hyperion
Billing

Billing

PA
REPORTING

SIEBEL

WORKFLOW

Cash
Mgt

AR

Sales
Funnel

Timecard
& Expenses

E-Procurement

Upload

Vendor
Invoices

Billing

AP Costs
Billing
Revenue
Charges / Recoveries

AP

Business Objects
Employees

Fixed
Assets

AP Costs

GL

Salaries etc.

DTX
HR /
Payroll

RETAIN
Employees

Oracle Projects & Ledgers

CUSTOMERS

FDC
Hyperion
Billing

Sales
Funnel

SIEBEL
Timecard
& Expenses

E-Procurement

Upload
Billing

Cash
Mgt

AR
PA
REPORTING

WORKFLOW

Vendor
Invoices

Billing

AP Costs
Billing
Revenue
Charges / Recoveries

Business Objects
OFA
Fixed
Employees
Assets
Discoverer

AP
AP Costs

GL

Salaries etc.

DTX
HR /
Payroll

RETAIN
Employees

Using Oracle Projects

for Flexible Business
Management
HOW & WHY?

Cap Gemini Ernst & Young requires an

application to accommodate our
ever changing organisational structure.
Our managers also need the capability
to gain projects visibility across
legal entities in a single instance.
Oracle 11i
meets these objectives
Christine Hodgson
CFO
Cap Gemini Ernst & Young, UK&
Ireland

Oracle Projects Design

Business Rule

Everything is project coded

Matrix Reporting

Project Ownership, Types & Classifications

Extracts Cross Operating Unit

Customisations

Time & Expense Recording - DTX

Forecasting

Borrowed & Lent

Designed in 10.7
Auto Accounting rules
GL Segments
Not using 11i functionality

Intercompany functionality

Extensions - flexibility

Oracle 11i inter-company functionality

enables the UK not to incur additional
overheads in the area of 'intra-geography'
trading and runs a relatively seamless
operation, which most importantly is
seamless to our clients and
to our consultants.
Luc Bourguignon
Director - Finance, Group Reporting &
Quality
Cap Gemini Ernst & Young, UK & Ireland

Oracle Projects Design

One Instance of Oracle Financials
4+ Legal Entities - Multiple Functional Currencies
Multiple Divisions
6500+ Employees
400 Business Units
8000 Projects

How & Why Projects.

All revenue, cost & commitment is project
coded
Simple Project Structure All Operating Units
Resources
Margin comparison
Project & Delivery Financial Mgt
Reporting

Project Structure
Simple
Any resource can be charged to any project!

Charges & Recoveries (Borrowed & Lent)

Reporting design

Project Owner
Project Classifications
Project Types
Customers
Revenue Categories
Cost Categories

Why hierarchies
Projects & Resources owned by business
units
Matrix Reporting as if owned

Extracts of data

Can restate history without transactional

impact
Core Functionality

Executive Conclusions
As with all large organisations, we
inevitably hone our organisation each
year. The 11i functionality enables us to
manage re-organisations using core
functionality from within Projects.
The use of 'multiple hierarchies' means that
we are able to more easily produce matrix
reporting with little or no effect on
transactional data or legal entity.
Maggie Driscoll
Director - Finance, Operational &
Functional
Cap Gemini Ernst & Young, UK &
Ireland

Invoicing
Work/Work
Simple & Composite Billing
Customisations

Composite Billing Multiple projects

Simple print module

Intercompany Design
Seamless view & management of the project across
Operating Units
Allow cross charging of all resources on projects
Automated intercompany
Transfer Price rules

Operating Unit
Business Unit
Project
Use of extensions provides flexibility
Billing
Costing

And the Result.

Massive data reorganisations can occur using
core functionality in Projects

Hierarchy changes
Changes to Lists of Values in PA
Amending Transfer price rules
Restate history through reporting rather than
transactional change
Audit Trail maintained on the Project
Audit Trail maintained for Customer
Audit Trail maintained in the Ledgers

Executive Conclusions
Our management accounting & invoicing functions
are dispersed throughout the company.
Oracle Projects allows us to bill our customers, but
analyse the revenue & costs according to our own
internal structures.
Most of my units business users dont even know
what the General Ledger is!
Ian Murphy
Financial Controller
Cap Gemini Ernst & Young, UK & Ireland

 and to conclude
Oracle Projects has been a complete success for
us, giving us ongoing financial benefits
At the same time it has allowed us to compress the
financial close cycle,
with improved quality of business reporting, which
would have only been possible through complex
General Ledger Reporting
Tony Deans
Vice President
Cap Gemini Ernst & Young, UK& Ireland

and of course life

really is not quite that simple, but
Oracle Projects certainly helps

Q&
A

QUESTIONS
ANSWERS

Primary
Reporting
Hierarchy
Features:

Single Primary Hierarchy for System

Hierarchical Structure
Business Group Organisation at Top of Hierarchy
Consolidation Organisations as well as Low Level Organisations
Used as Default Hierarchy for GOP and other reporting
All Organisations in each Sub Hierarchy belong to same OU
Business Group Org

OU1 Org

Cons Org (OU1)

OU2 Org

Cons Org (OU2)

OU3 Org

Cons Org (OU3)

LL Org1 (OU1)

LL Org1 (OU2)

LL Org1 (OU3)

LL Org2 (OU1)

LL Org2 (OU2)

LL Org2 (OU3)

Alternative Reporting Hierarchies

Features:

As many Alternative Reporting Hierarchy as required

Hierarchical Structure
Any Organisation can be at Top of Hierarchy
Low Level Organisations do not necessarily appear in every Hierarchy
Organisations from different OUs can appear at all levels and branches
Used for Memo and other special reporting
Alt Hierarchy Top Org

Cons Org1

Cons Org2

LL Org1 (OU1)

LL Org2 (OU1)

LL Org1 (OU2)

LL Org2 (OU2)

LL Org1 (OU3)

LL Org2 (OU3)

OPAL 11i UPRADE - Intercompany

Receiver

Provider
AR Invoice

ICPO

AR

Generates

ICPROJ
Actual Charge
and Recovery

RO

Books to

AP

AP Invoice

Posts
TPO

Notional Charge
and Recovery

TPROJ
KEY
TPROJ - Target Project
ICPROJ - Inter Company Project
RO - Resource Owning Org
ICPO - Inter Company Project Owner
TPO - Target Project Owning Org

OPAL 11i UPGRADE - Intercompany

Receiver

Provider
IC Project
Forecast
Process

ICPO

Project IC
Revenue
Forecast

ICPROJ

RO

Forecasts

Absorbed Cost
Forecast

TPOABC
TPO
TPROJ
KEY
TPROJ - Target Project
TPOABC - Absorbed Cost Forecast
Project for TPO
ICPROJ - Inter Company Project
RO - Resource Owning Org
ICPO - Inter Company Project Owner
TPO - Target Project Owning Org

11i Transfer Price Extension

Get Cross Charge TP Schedule
Identify Relevant Line / Rule
Target Project
Bill Rate

Get Bill Rate

Rate = Null
Apply Line/Rule
Percentages

i.e. Use Std Appl

Functionality

11i Standard Costing Module

Get Costing TP
Schedule
Std Cost with
DSA check

DSA
Check
Rate =
Zero

Identify Relevant
Line / Rule
Std Cost no
DSA check

Target
Project Bill
Rate

Get Std
Cost

Get Bill
Rate

Apply Line / Rule

Percentages

Nominated
Bill Rate
Schedule

Executive Conclusions
Upgrading to 11i Financials enabled us to
run all our accounts from a single, centrally
managed database.
We are able to roll out new applications to
the thousands of PCs in use in the UK &
Ireland.
Users can quickly and easily access
information using any internet browser.
Jeff Clark
Project Manager,
Cap Gemini Ernst & Young, UK&
Ireland