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Streamline Your Oracle Financials Close Process

FL OAUG November 15, 2010
Matthew Busch UC4 Software, Inc.

Business Value$
“The Hackett Group’s studies show that
“world-class companies spend 45 percent less” on their closing and reporting efforts than other companies, which on average saves $5.5 million per $1 billion in revenue. These savings come, in part, from needing fewer people and systems to scrub data.” Galen Gruman, CIO
How IT Executives Can Help Speed Up Financial Reporting, CIO Magazine, March 15, 2007

Sound Familiar?
Does your Organization have execution errors, and costly recovery efforts due to human error in processing? Do you have unreliable processing and reporting delays? Does critical business information fail to reach executives in a timely and accurate fashion, delaying key business decisions? Do technical and functional employees spend a disproportionate amount of time “baby sitting” processes? Are you having difficultly scaling your manual processes to support future company growth


If you answered yes, you may feel like this:

Agenda Common issues Consequences Common (but misguided) Alternatives Solution Targets for Automation Solution Success Stories 5 .

Common Business Challenges Visibility Over Entire Business Process Lack of Control – manual tasks Difficulty in Auditing manual processes Management of Critical Processes Number of Steps Required to Complete Task Failure to Detect Errors and notify Delayed Response Between Departments Sending Accurate Information to Partners Business/IT Alignment .

Coordination of Requests Beyond Core Application File/Data Management Delayed Error Notification Potential Performance Bottlenecks Data Corruption Missing Service Level agreements . Concurrent manager is Oracle myopic. Many CPs must be handled manually. Still must use Concurrent Programs (CPs) to complete job tasks.Common OEBS Challenges Oracle Workflow directs users to complete tasks. Integration still relies on user initiation and intervention. not automation.

Databases.Common Business Process Challenges Multiple People and Departments Packaged Applications Data Warehouse Cloud Applications Databases Legacy Applications Applications. Operating Systems and Services .

Operating Systems and Services .Common Business Process Challenges Multiple People and Departments * Error prone and costly manual processes Unpredictable event-driven workload Disconnected islands of automation Lack of visibility. Databases. management & control Packaged Applications Data Warehouse Cloud Applications Databases Legacy Applications Applications.

Your Goal: Intelligent End-toEnd Automation Multiple People and Departments To effectively deliver the right business information at the right time at the lowest possible cost Packaged Packaged Applications Applications Data Data Warehouse Warehouse Cloud Packaged Applications Applications Databases Databases Legacy Legacy Applications Applications Applications. Operating Systems and Services . Databases.

Common (but misguided?) Alternatives Throw more people at the problem Customize application code Write additional custom code (Avg. Customization .$10k) Customize Workflow “Live with” Concurrent Manager .

Consequences Loss of revenue Misstated Financials Loss in share holder confidence Increased costs Increase in staff Custom development Lack of timely and accurate data .

reduced errors . error prone Automated: faster.Solution: Automation Manual: slower.

Targets for Automation in Oracle EBS Manually submitted processes (typically non-SRS concurrent requests) Parent/child/subchild tracking Workload management of ad hoc requests Integration with other applications Output Verification and Notification Standardized and repeatable processes .

Open Financial Period .Non-SRS Concurrent Process .

Challenges – Oracle E-Business Suite Number of Operating Units Number of Project Periods Volume of Transactions Time & Resource Constraints Reporting Requirements Tracking Spawned Child Processes Interfaces – Internal/External Disparate Systems .

AR. FA.What are Financial Period Close Challenges? Pain: Sheer volume of similar manual processes with the resulting probability of errors Company ABC example: 5 Legal Books (Sets of Books) 10 Operating Units 5 Modules/OU – AP. INV & PO Organization has 250 Period Close Process Flows to Complete .

Open next period in all applications.Oracle Applications Period Close Process Accounts Payable Purchasing Accounts Receivable Sequence M/E Closing Day -2 EOD -1 EOD -1 EOD 0 EOD Application Assets General ledger Comments 1 All. Costing. Oracle Receivables passes customer invoices and payment transactions to General Ledger. except Assets . Margin Analysis and Sales compensation will be produced in General Ledger during the close process. for your organization. Run the Auto Invoice process to import all transactions from Oracle Order Entry or any external legacy system. + Assets + General Ledger 5 6 -1 12:00 EOD 1 Lunch Oracle Inventory Oracle Receivables 7 8 2 5:00 pm 3 5:00 pm Oracle Assets General Ledger Close . Do not interface any other information Oracle Purchasing passes receiving transactions to Oracle General Ledger. Oracle Inventory passes information to General Ledger inventory accounts. it is at time of receipt. followed by AP. Only upon receiving OK from Controller. and . Oracle Fixed Assets passes information to General Ledger asset and depreciation accounts. Oracle Payables passes vendor invoices and payment transactions to General Ledger .Final time on last day of month after all transactions processed. Oracle Purchasing also creates a liability for uninvoiced receipts. Oracle Payables 2 3 4 Oracle Order Entry Oracle Purchasing The sequence should be GL first. Cut off. This is the latest that the next periods can be opened in Oracle for the applications. .

Accounts Payables .

Resolve all unaccounted transactions submit the “Payables Accounting Process”. Query for incomplete payment batches . Run the “Update Matured Future Dated Payments Status” CP.Accounts Payable Run the “Payables Invoice Validation” CP. Run the “Unaccounted Transactions Report” Rerun the “Payables Accounting Process”. . Open the next A/P period.

Accounts Payable (Continued) Run the “Unaccounted Transactions Sweep Program”. . “Posted Invoice Register” report “Posted Payments Register” report Run the “Mass Additions Create Program”. Run the “Payables Transfer to General Ledger Program”. Reconcile Payables activity for the period using the following reports: “Accounts Payable Trial Balance” report to reconcile your accounts payable liability in your general ledger. Close the current A/P period. Import and post the Payables Journal entries.

Accounts Payables .

Purchasing .

Review the “Un-invoiced Receipts Register”. Use the “Purchase Price Variance Report”. Use the “Invoice Price Variance Report” to review the accuracy of purchase order prices. Close the Purchasing period Open the next Purchasing period.Purchasing Run the “Receipt Accrual – Period End Process” concurrent program. .

Purchasing .

Accounts Receivable .

Run the General Ledger Interface process. Run the “Revenue Recognition” process. Close the current A/R period . Run the “AR Reconciliation Report” to automatically reconcile customer receipts.Accounts Receivable Open the next A/R period. transactions. and account balances. Review “Unposted Items Report” for any unposted A/R transactions.

Accounts Receivable .

Fixed Assets .

rollback depreciation and make the needed changes are made. Process transactions (additions/retirements/movements/capitalization’s) Run Depreciation without closing book If changes are identified. Run Depreciation and close period which closes current period and opens next period.Fixed Assets Run depreciation for the prior period. Reconcile Asset balance to GL Asset accounts .

Fixed Assets .

General Ledger .

General Ledger Run Mass Allocation J/E process Import and Post all system generated J/E for the current period Open the next GL period Run the user defined FSG reports Re-run the user defined FSG report Close the current GL period .

General Ledger .

Financial Close Without UC4 Workload Automation Suite .

Financial Close With UC4 Workload Automation Suite .

What are the Key Benefits? Standardization of Close Process across all OU’s – Best Practices Automation of Close Process across all OU’s – Accurate & More Frequent Reporting Reduced Close Cycle Time – Timelier Reporting System and Process Integration Audit Traceability Conditional Logic Processing Output Scanning and Notification Allow resources to focus on higher value job functions. .

UC4 Oracle Applications Extension™ Shipping Since 1997 and validated by Oracle Easily Import Oracle Concurrent Programs and Request Sets into UC4 Pass Dynamic Parameters to Concurrent Programs Scan Output and Log Files Notification with Output and Log File attachments Complex Business Process Logic Ad Hoc Job Interception 38 .

UC4 Solution .

UC4 Solution .

UC4 Solution .

Automated Solutions Payables Payment Schedule (Checks) GL Open and Close Periods AR Statement Generation MRP Tracker Receivables Transfer Process Multi-Org Solution GL Import and Post AR WebLockBox Process PA Open and Close Periods AP Open and Close Periods Mass Allocation Solution AR Open and Close Periods Financial Statement Generator (FSG) Process PO Open and Close Periods Reporting Instance Solution Inventory Open and Close Periods Custom Legacy Interfaces NOTE: The above modules/extensions/functionality will be delivered through a sold separate consulting engagement. and are not part of the core UC4 Application Manager software.UC4 . .

Enterprise Integration possibilities 43 .

GL Transfer Resource Re-assignment – Monitoring MRP Child Processes Reduced Period Close – Financial Statement Generator Time from 6.Customer Successes: Customer Objectives Streamline & Automate Period Close Move to Production + Automations Performed – GL Import and Post – GL Open & Close Results Achieved – AR Open & Close Reduced Manual Input Reduction of Input Errors – Purchasing Open & Close Eliminate Period Close – Inventory Open & Close Reruns – AR .5 Days to 13 hrs~ 75% Reduction .

Business Objects Results Achieved .Oracle Financials “Lights Out” Operations for – AR Interface to GL CRM Interfaces – AP Interface to GL Automated use of First Logic – Inventory Interface to GL data cleansing tools – Importing and Posting JEs from SubAutomated interfaces to Ledgers Data Warehouse 14 Month ROI .Customer Successes: Customer Objectives + Automations Performed Streamline and Automate – Automation of month-end close interfaces from Oracle Eincorporating: Business Suite to Siebel .Informatica Replace “Home Grown” Scheduling System .Siebel CRM .

AP Interface to GL .Importing and Posting Journal Entries from Sub-Ledgers Results Achieved Enhanced Notification “Lights Out” Operations for Interfaces . Invoicing) – For each operating unit in APAC (5). and Europe (10): .Inventory Interface to GL . Shipments.AR Interface to GL .Customer Successes: Customer Objectives Streamline and Automate interfaces into and out of Oracle E-Business Suite Reduce Latency and Errors Improve time to deliver orders + Automations Performed – Automation of Interfaces into and out of Oracle E-Business Suite (Orders. NA (1).

800+ customers in more than 50 countries More than 600 large enterprise customers 95% say they would buy UC4 again 260+ employees.Who We Are + + Bosch + Aer Lingus + AOK + Fossil Allianz + Ebay + Sony + GE + Panasonic +TUI +Xerox Motorola + Porsche + Ricoh + Sara Lee + +Suzuk i +Chevron +Commerzban k + E•on + Argonau t + Mazda 1. and $75m revenue 20% license growth YOY Top tier in Gartner and Forrester .

uc4.Yon@uc4.Contact Information Regional Account Manager Ronald Yon Ronald. : .com – Office: +1-239-304-8601 Grant Chen: Oracle Solutions Director – Mobile: 832-577-9060 UC4 Software Inc.chen@uc4.

Questions? .