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Oracle Internet Expenses An Implementation Case Study

Rebecca Reeve Accounting Manager Komori America Corporation

Copyright 2008 KOMORI Corporation. All Rights reserved.

About Komori America Corporation


Komori is a premier manufacturer of sheetfed and web offset printing equipment, headquartered in Tokyo, Japan, and serves customers around the globe. Komori America Corporation, the US subsidiary of Komori, is located in Rolling Meadows, IL and provides sales and service throughout the United States

Oracle Applications Implementation at Komori


Go-Live April 1, 2007 Modules include: Financials, Projects, Inventory, Order Management, Field Service, Installed Base, Bill of Materials Each Press is in Installed Base and also Exists as a Project Project Numbers Include: Model, Serial Number and Extension (-01 for New Press Sale and -02 and on for Used Press Sale) Approximately 100 users

Objectives of Internet Expenses Implementation


Automate the Travel Expense Business Rules Consistency of Expense Submission and Reimbursement Reduce Processing Time in Accounting Department

Obstacles of Internet Expense Implementation


Outdated Business Travel Expense Policy Computer Abilities of Employees Internet Connection Ability of Employees Charging Travel Expenses to Projects/Presses Change Management Oracle Time and Labor Implementation Project Running Parallel

Oracle Internet Expense Project Details


Project Team Consisted of: Service Coordinator, Human Resources Director, Sales Coordinator, Payables Supervisor, Accounting Manager/Oracle Support, Project Manager, IT Manager Worked with Consulting Company to provide OIE Expertise and Change Management Support Timeline: Started June, 2008 with Rolling Go-Live Starting October, 2008 OIE.J was Implemented

Oracle Internet Expense Setup Details


Two Templates one for Sales and Administrative Personnel and one for Field Service Personnel Service Template has Expense Types with Connections to Project Expenditure Types to Enable Charging Projects/Presses - Installation - Warranty - Chargeable - Non-Chargeable/Non-Warranty Sales Template has Expense Types with GL Account Number Definitions Defined Custom Extension to Restrict Entry of Expenses over 60 days old

Oracle Internet Expense Setup Details (contd)


Defined Company Paid Airfare Expense Type that Employee Enters as a Negative number Justifications Required for Selected Expense Types Such as Gifts and Entertainment Use Justification field on Mileage Expense Type to State Where Employee was Going Receipt Required Dollar Limits used Extensively on Expense Types
Tools Expense Type limit set to $0.00

Per Diem Rate Schedules Defined for Both National and International Rates Custom Extension used for Mileage Reimbursement Calculations

Project Issues and Complications


How to get Employees to Accept new Expense Report System?
Hired Change Management expert who interviewed Employees, wrote Newsletters about the Project, created User Guides and trained the Trainers

Expense Report Policy was Outdated


Worked with Human Resources and Executive Management to write an updated and more comprehensive Business Travel Expense Policy.

How do Employees Charge Expenses to Projects?


Created a Custom Program to create Allocations for each employee based upon open Service Requests and the Installed Base Instances

Project Issues and Complications (contd)


Per Diem Calculations
Had to adjust Per Diem Rate Schedules several times to get the correct calculations for Same Day and Last Day rates. Needed several patches to get it working.

Mileage Reimbursement Calculations


Different Mileage Reimbursement rates based on whether Employee receives Auto Allowance or not. Implemented DFF on Employee record and had Custom Extension look at that field. Rates defined in Mileage Rate Schedule.

Validation of Project, Task and Expenditure Type


Frequent errors in choosing Expense Type and Allocation combination sent Expense Reports to SysAdmin. Created custom message to notify employee when combination was not valid. Subsequently found Roll-up Patch for OIE that gives this validation.

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Project Issues and Complications (contd)


How does Service Department Bill Expenses to Customers?
Created a Custom Report to Summarize Employee Expenses by Service Request and Week. Service Department Runs Report and Enters Charges to Service Requests from the Report.

How to Impose Dollar Limits on Expense Reimbursement?


$30 Internet Connection Reimbursement used Rate Schedules Annual Office Supply Limitation had to define a custom extension

How to Process Expense Reimbursements that Fall Outside of Policy or the Date Restriction?
Defined a manual Expense Reimbursement form and process that requires Executive VP approval

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Results of Internet Expense Implementation


Started Roll-out in Early October, 2008 Rolled Out Between 8 10 Employees each Week Finished Roll-Out by Late December, 2008 Team Members were Assigned to Train Employees in Their Area and Approve them for Go-Live Change Management Communications Started in September, 2008 and Continued During the Roll-Out Processing Time in Accounting Department has been Reduced by at least half Customer Billing Processing Time in Service Department has been Drastically Reduced and Simplified Able to Apply Business Travel Policy Consistently Across the Company
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Lessons Learned
Hiring Outside Resource to do Change Management was Worth the Money Having Team Members Train and Support their Areas Made them More Accountable for their Work on the Project Rolling Go-Live was very Effective and Relatively Easy to do

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Questions ?

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Contact Information

Rebecca Reeve Accounting Manager Komori America Corporation becky_reeve@ne.komori.co.jp

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