Case Study: Leveraging Oracle Incentive Compensation to Calculate Royalties for Sunrise Greetings.

Amit Bhavsar

Royalties are set in advance as a percentage of income arising from the commercialization of the owner's rights or property and having a accurate system to collect the required information and calculating the royalty can be a challenge. This Case Study talks about how Sunrise Greetings leveraged on Oracle Incentive Compensation for Collecting the Sales information generated from their systems and calculating royalties for their huge artist base.

unique imagery from a diverse set of illustrators. and became a wholly owned. Payment of royalties to the artists on time is the most critical process. independent subsidiary of the largest greeting card company in the world. The name change reinforces the identity of the company’s flagship card line and emphasizes its primary purpose: to create and distribute Sunrise Greetings products.About Sunrise Greetings Sunrise Greetings was founded as Sunrise Publications in 1974. Artist Agreements and Royalty Compensation plans. Challenge Sunrise Greetings IT infrastructure consisted of lot of disparate legacy applications on which they were maintaining Artist. Elliott Bay™ and pay them royalties based on the legal agreements they have with them on using there work on there products. Since artists are the key intellectual asset for sunrise greetings. The first Sunrise products featured American Indian themes. Inc. However the company quickly grew beyond this niche and established a reputation as a purveyor of stationery products featuring high-quality. The Flavia Company. In 1997 the company changed its name to InterArt to reflect a strategy of distributing additional licensed brands under the InterArt umbrella. The manual royalty calculation and the legacy system on which they were maintaining the data was a major bottleneck in the business process and were having lot of challenges like: • • • • • • Artist not getting paid at right time Complicated Calculations due to different compensation plans Auditing issues. This IT setup was not flexible enough to handle real time information flow due to lot of interfaces between Oracle and legacy application and was often prone to delays and data loss. In January 2005 InterArt became Sunrise Greetings. This case study talks about how HCL EAS team provided a customized solution to sunrise to streamline their royalty paying process by leveraging the Incentive Compensation module from Oracle e-Business Suite. which will act as central repository of the artist. automate the Royalty calculation process and streamline information flow in real time. agreements and compensation plans. Sandra Magsamen. Sunrise Greetings get their designs from renowned Artists like Dena Designs™ Mary Engelbreit®. Susan Wheeler. Max & Lucy®. Reconciliation of the Royalties Lot of Manual Work and maintaining data accuracy Sales Rep does not have visibility of commission These Challenges led Sunrise Greetings to quickly look for solutions. The following year the company was purchased by Hallmark Cards. .

Calculate Royalties & Commission Payable Pay to Artist General Ledger Interface to Ledger Discounts Posted to GL . AR. After researching HCL EAS came with the solution to use Oracle Incentive Compensation a module offered in e-Business suite to calculate Sales Compensation for the Sales force. Solution •Implement Incentive Compensation module and Integrate with INV. OM. Warehouse Management and Procure to Pay Cycles. Sunrise Greetings was only looking for one IT platform on which they can rest their valuable data and slowly take out the legacy apps from the infrastructure.Approach/Solution Sunrise Greetings was already using Oracle e-Business suite to support the Order to Cash. AR. Oracle Incentive compensation offers wonderful functionality to calculate commissions for the sales force and integrates with INV. AP and GL. But how to Calculate royalties with Oracle Incentive Compensation was still question the IT heads and users were asking. from the Integration stand point and serving as a repository for the compensation plans and calculating commissions this seems to be a very promising solutions. Modify the data for Artist. This is where a customized solution was offered my HCL EAS to leverage Oracle Incentive compensation to store Artist information from the Oracle stand point and using the Incentive Compensations Commission calculating functionality to calculate royalties and pay the artists. Since having major chunk of the business process on Oracle e-business suite Sunrise went looking for solutions in Oracle e-business suite. AP & GL module • Royalties and commissions Paid thru’ Incentive Compensation Invoice Interface to GL Wholesale Amount to Incentive Compensation Order Management Orders Entered & Shipped Receivables Invoices Created Incentive Compensation Import Invoice Data. OM.

Only the components which make the plan needs to be modified which gave the accounting department great flexibility to initiate and update compensation plans. there was no need to change the whole calculate process. The Reconciliations were accurate and Auditors were getting relevant information on time. IT investment was considerably saved my bringing all the business process under one platform. The Artists were getting paid in time. . This gave Sunrise Greetings one platform to support and eliminated disparate Legacy applications.Results • • • • • • • A central Repository was created to store Artist Information. If the Agreement Changes with time. Artist Agreements and Compensation Plans. Sales force has greater transparency into there commissions.

Sign up to vote on this title
UsefulNot useful

Master Your Semester with Scribd & The New York Times

Special offer for students: Only $4.99/month.

Master Your Semester with a Special Offer from Scribd & The New York Times

Cancel anytime.