Business Function: Finance Process Owner : Farooq Ahmmad Bhuya

Process code : Employee Expenses Accounts & Finance

Business Blueprint PwC Consultant: Sandipan Sarma, Monojit
Mahapatra
Process Name : Employee Expenses Version : 1.0 Date : 27-Apr-2020

Envisioned End State

Document

Oracle Employee Expenses

Version 1.0

Standard Group

Page 1 of 17
Business Function: Finance Process Owner : Farooq Ahmmad Bhuya
Process code : Employee Expenses Accounts & Finance
Business Blueprint PwC Consultant: Sandipan Sarma, Monojit
Mahapatra
Process Name : Employee Expenses Version : 1.0 Date : 27-Apr-2020

Document Control
Change Record

Date Author Version Change Reference

27-Apr-2020 Sandipan Sarma 1.0

Reviewers
Name Designation

Monojit Mohapatra Principal Consultant

Vishal Sharma Director

Intended Audience
Name Designation Role & Responsibility

Page 2 of 17
 Business Function: Finance Process Owner : Farooq Ahmmad Bhuya
Process code : Employee Expenses Accounts & Finance
Business Blueprint PwC Consultant: Sandipan Sarma, Monojit
Mahapatra
Process Name : Employee Expenses Version : 1.0 Date : 27-Apr-2020

Name Designation Role & Responsibility

DOCUMENT CONTROL......................................................................................................................................................................................................................................................2
REVIEWERS......................................................................................................................................................................................................................................................................2
INTENDED AUDIENCE.......................................................................................................................................................................................................................................................2
1. OVERVIEW..............................................................................................................................................................................................................................................................4
1.1 INTRODUCTION...................................................................................................................................................................................................................................................4
1.2 ABOUT THIS DOCUMENT....................................................................................................................................................................................................................................4
1.3 OVERVIEW OF EXPENSES....................................................................................................................................................................................................................................5
1.3.1. System Brief...............................................................................................................................................................................................................................................5
2. MAJOR DECISIONS FOR EXPENSES................................................................................................................................................................................................................6
2.1 EMPLOYEE CREATION........................................................................................................................................................................................................................................6
2.2 MANAGER AND AUDITOR ASSIGNMENT............................................................................................................................................................................................................6
2.3 CASH ADVANCE CREATION................................................................................................................................................................................................................................6
2.4 CASH ADVANCE APPROVAL AND PAYMENT......................................................................................................................................................................................................6
2.5 EXPENSE REPORT CREATION............................................................................................................................................................................................................................6
2.6 EXPENSE REPORT APPROVAL AND PAYMENT....................................................................................................................................................................................................6
3. KEY CONFIGURATION CONSIDERATIONS..................................................................................................................................................................................................7
4. CORE EMPLOYEE EXPENSE PROCESS LIST................................................................................................................................................................................................8
5. PROCESS APPROACH IN ENTERPRISE APPLICATIONS...........................................................................................................................................................................9
5.1 MODELING OF EXP-01 EXPENSE REPORT PROCESS FLOW.....................................................................................................................................................................9
5.2 MODELING OF EXP-02 CASH ADVANCE PROCESS FLOW......................................................................................................................................................................12
6. GAP ANALYSIS.....................................................................................................................................................................................................................................................15
7. REPORTING REQUIREMENTS........................................................................................................................................................................................................................15
8. OPEN ITEMS..........................................................................................................................................................................................................................................................15

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 Business Function: Finance Process Owner : Farooq Ahmmad Bhuya
Process code : Employee Expenses Accounts & Finance
Business Blueprint PwC Consultant: Sandipan Sarma, Monojit
Mahapatra
Process Name : Employee Expenses Version : 1.0 Date : 27-Apr-2020

9. PROCESS FLOW LEGENDS...............................................................................................................................................................................................................................16

1. Overview

1.1 Introduction

Established in 1969 and Garment track started in 1984, Standard Group is one of the longest running garment manufacturing companies in
Bangladesh. Over the years, the company has grown substantially in both size and customer base. It has one of the largest woven garment
manufacturing facilities in Bangladesh including sweater production facility. In addition, the company has its own in-house garment washing,
printing, embroidery, apparel design, garment testing and various accessories production facilities. Standard Group has one of the most
comprehensive and technical manufacturing systems in the country. From the beginning of the order process to the end; Standard Group provides a
complete and efficient solution each step of the way. Their production lines utilize the newest technologies available in the market; which alongside
their highly skilled workforce are able to produce garments with the highest quality.
With the aim to seamlessly integrate business operations and drive efficient reporting, Standard Group has embarked on a journey to implement
Oracle eBusiness Suite in a hybrid model comprising of on premise and cloud-based applications.

1.2 About this Document

This document covers the envisioned solution for the expenses process of Standard Group through Oracle Applications. This document focuses on
entering employee expense report and cash advance paid to employees.

The major process has been subdivided into Sub Processes. The document is organized in the following manner:

Section 2 of this document highlights the major decisions that affects the overall processes and design of the system.

Page 4 of 17
 Business Function: Finance Process Owner : Farooq Ahmmad Bhuya
Process code : Employee Expenses Accounts & Finance
Business Blueprint PwC Consultant: Sandipan Sarma, Monojit
Mahapatra
Process Name : Employee Expenses Version : 1.0 Date : 27-Apr-2020

Section 3 of this document identifies the master data/ configuration elements for this process / module.
Section 4 of this document identifies each sub process with a unique process number.
Section 5 describes each sub process in a detailed manner and establishes a mapping with standard applications
 Process Flow Diagram – depicting the high-level flow of information as envisioned within Oracle Applications
 Steps to be performed in order to complete the process
 Mapping of the steps to corresponding Oracle Applications Module / Functionality
 Indication of Fit / Gap with standard functionality
 Problem Areas addressed with respect to Current Operations
 Forward Looking Practices / Improvements suggested
Section 6 summarizes all the Gaps as identified with standard functionality and suggests mitigating measures
Section 7 identifies the reporting requirements
Section 8 identifies the Open Items for the process
Section 9 describes the legends as used in the process flow diagram

1.3 Overview of Expenses

1.3.1. System Brief

Oracle Expenses Cloud is a complete, end-to-end solution for digital expense management giving employees easy data entry options with flexible
payment options, versatile data entry methods, and personalize user preferences

In Expenses, Employees can enter and submit expense reports quickly and after expense reports are submitted, users can also withdraw submitted
expense reports to make corrections and resubmit the correct report for approval after which manger can approve, do audit, and pay expense reports
quickly while enforcing transparent, tight controls throughout the expense management process.

Page 5 of 17
 Business Function: Finance Process Owner : Farooq Ahmmad Bhuya
Process code : Employee Expenses Accounts & Finance
Business Blueprint PwC Consultant: Sandipan Sarma, Monojit
Mahapatra
Process Name : Employee Expenses Version : 1.0 Date : 27-Apr-2020

The envisioned system shall leverage all the above package capabilities and more to best suit the structure and the processes followed at Standard.
Wherever necessary the application shall be personalized and enhanced to integrate tightly with Standard specific requirements. The system shall also
introduce some forward-looking changes to make the processes more efficient by reducing errors, rework and delay.

2. Major Decisions for Expenses

2.1 Employee Creation

Existing Employees shall be imported as part of Conversion activity. We shall only import active Employees. Any new Employee shall be added
only when there is a request from HCM team, and it passes through proper validation outside Oracle. PwC recommends giving access to only
authorized person/Team generally named as Master Data Management Team to create the Employee to reduce the access of users over the Employee
data of the Group. Provide the default expense account in the Expense Information region for each employee.

2.2 Manager and Auditor Assignment

All Employees should have a Manager assigned in the system which will approve all the Expense report and Cash advances. Expense Auditor role to
be provided to the user who would be having authority to audit expense report and cash advances.

2.3 Cash Advance Creation

Employees whoever require cash advance shall submit a request for cash advance in the application.

2.4 Cash Advance Approval and Payment

Once the request for Cash advance is been submitted by Employee, the request will go to Manager for approval based on the Cash advance approval
rules been defined. Once the advance is approved by Manager and audited by Expense auditor. Payment for cash advance can be done to Employees
in the application.

2.5 Expense report Creation

Employees whoever has incurred any Business-related expenses can claim for reimbursement by submitting Expense report under the appropriate
category for which expenses has been incurred.

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 Business Function: Finance Process Owner : Farooq Ahmmad Bhuya
Process code : Employee Expenses Accounts & Finance
Business Blueprint PwC Consultant: Sandipan Sarma, Monojit
Mahapatra
Process Name : Employee Expenses Version : 1.0 Date : 27-Apr-2020

2.6 Expense report Approval and payment

Once the Expense report is been submitted by Employee, the request will go to Manager for approval based on the Expense Report approval rules
been defined. Once the Expense report is approved by Manager and audited by Expense auditor. Payment to Employees can be made either by
adjusting cash advances if any paid to employees or by crediting the expense amount in the employees account.

3. Key Configuration Considerations

The table below identifies the major configuration elements for setting up Expenses:

Code Parameter Remarks

FUCNFG-01 Expense System Options Manage different system options available in expenses
FUCNFG-02 Expense Report Templates Group related expense types that are defined for the business unit.
Setup expense policy for employees to be used while submitting expense
FUCNFG-03 Policies by Expense Category report
FUCNFG-04 Cash Advance and Authorization policies Capture the fields on Cash Advance
Capture the fields on expense items which are required/Optional/Hidden
FUCNFG-05 Expenses Fields by Category for each expense category
Criteria to automatically select expense report for audit
FUCNFG-06 Expense Audit Selection Rule select expense reports for audit
Expense Report Audit and Receipt Rule Associate the audit selection rule with a business unit
FUCNFG-07 Assignments
FUCNFG-08 Approval Rules Set the approval rules for Expense report and Cash Advance

Page 7 of 17
 Business Function: Finance Process Owner : Farooq Ahmmad Bhuya
Process code : Employee Expenses Accounts & Finance
Business Blueprint PwC Consultant: Sandipan Sarma, Monojit
Mahapatra
Process Name : Employee Expenses Version : 1.0 Date : 27-Apr-2020

4. Core Employee Expense Process List

Code Processes
EXP-01 EXPENSE REPORT CREATION
EXP-02 CASH ADVANCE CREATION

5. Process approach in Enterprise Applications

5.1 Modeling of EXP-01 EXPENSE REPORT PROCESS FLOW

Envisioned Process Flow in Oracle Applications

Page 8 of 17
Business Function: Finance Process Owner : Farooq Ahmmad Bhuya
Process code : Employee Expenses Accounts & Finance
Business Blueprint PwC Consultant: Sandipan Sarma, Monojit
Mahapatra
Process Name : Employee Expenses Version : 1.0 Date : 27-Apr-2020

Step Step Name Phase - 1 Phase - 2 Role / Fit / Applicatio

Numbe Responsibility Gap n / Module
r
1. Create Expense Employees incurring any Business- Same as Phase 1 Expense Manager Fit Expenses
Report related expenses claim for
reimbursement by submitting Expense

Page 9 of 17
Business Function: Finance Process Owner : Farooq Ahmmad Bhuya
Process code : Employee Expenses Accounts & Finance
Business Blueprint PwC Consultant: Sandipan Sarma, Monojit
Mahapatra
Process Name : Employee Expenses Version : 1.0 Date : 27-Apr-2020

report under the appropriate category.

Type of travel :-
a. International
b. Domestic
Under each type of travel, A/C wise
expense category shall be maintained.
2. Manager Expense report created goes for Same as Phase 1 Expense Manager Fit Expenses
approval approval to Manager. Manager
approval process shall be maintained
category wise.
3. Auditor Audit After Manager approves the Expense Same as Phase 1 Expense Auditor Fit Expenses
report, Expense Auditor to complete
audit. Audit process shall be
maintained category wise.
4. Run the Payment Expense Manager to run ‘Process Same as Phase 1 Expense Manager Fit Expenses
Request Program Expense Reimbursement and cash
advance’ process.
5. Payment Status Payment status will be ready for Same as Phase 1 Expense Manager Fit Expenses
payment.
6. Integration for Integration from Fusion to On Premise Same as Phase 1 Integrated System Gap Expenses
interfacing from to create Payable invoice from Expense
Fusion to On report
Premise
7. Automatically Standard Invoice gets created in On Same as Phase 1 AP Invoice Entry Fit Account
create Standard Premise & the Invoice status is Payables
Invoice ‘Validated’ as well as ‘Approved’.
8. Payment Pay the Validated the invoice based on Same as Phase 1 AP Invoice Entry Fit Account
the amount of expense report. Payables
9. Integration for Integration from Fusion to On Premise Same as Phase 1 Integrated System Gap Expenses
interfacing from to change the payment status.
On Premise to
Fusion

Page 10 of 17
Business Function: Finance Process Owner : Farooq Ahmmad Bhuya
Process code : Employee Expenses Accounts & Finance
Business Blueprint PwC Consultant: Sandipan Sarma, Monojit
Mahapatra
Process Name : Employee Expenses Version : 1.0 Date : 27-Apr-2020

10. Payment Status Payment status will be changed to paid Same as Phase 1 Expense Manager Fit Expenses
11. Adjustment Apply prepayment invoice with Same as Phase 1 AP Invoice Entry Fit Account
Entry Standard invoices for adjustment. Payables
Adjustment process has been followed
by two ways – Full Adjustment or
partial adjustment. It will be applied
and the reduced amount if adjustment
process is partial.

Problem Areas Addressed

Improvements Suggested in Envisioned Process

1.

Page 11 of 17
Business Function: Finance Process Owner : Farooq Ahmmad Bhuya
Process code : Employee Expenses Accounts & Finance
Business Blueprint PwC Consultant: Sandipan Sarma, Monojit
Mahapatra
Process Name : Employee Expenses Version : 1.0 Date : 27-Apr-2020

Step Step Name Phase - 1 Phase - 2 Role / Fit / Applicatio

Numbe Responsibilit Gap n / Module
r y

Page 12 of 17
Business Function: Finance Process Owner : Farooq Ahmmad Bhuya
Process code : Employee Expenses Accounts & Finance
Business Blueprint PwC Consultant: Sandipan Sarma, Monojit
Mahapatra
Process Name : Employee Expenses Version : 1.0 Date : 27-Apr-2020

1. Employee Raise Employees whoever require cash advance Same as Phase 1 Expense Manager Fit Expenses
Cash Advance to submit a request for cash advance only
ledger currency. Here ledger currency –
BDT. At the time of cash advance
mentioned the Employee name as well as
employee code.
2. Enter Additional Enter the additional details in DFF Same as Phase 1 Expense Manager Gap Expenses
Details in DFF followed by Step 1. Mentioned the
Employee name as well as employee code.
3. Manager approval Cash Advance created goes for approval to Same as Phase 1 Expense Manager Fit Expenses
Manager
4. Auditor Audit After Manager approves the Cash Same as Phase 1 Expense Auditor Fit Expenses
Advance, Expense Auditor to complete
audit
5. Run the Payment Expense Manager to run ‘Process Same as Phase 1 Expense Manager Fit Expenses
Request Program Expense Reimbursement and cash
advance’ process.
6. Payment Status Payment status will be ‘Ready for Same as Phase 1 Expense Manager Fit Expenses
Payment’.
7. Integration for Integration from Fusion to On Premise to Same as Phase 1 Integrated Gap Expenses
interfacing from create Payable invoice from Cash System
Fusion to On Advance.
Premise
8. Automatically Validated Prepayment Invoice gets Same as Phase 1 Accounts Payable Fit Account
create Prepayment created automatically in On Premise. Manager Payables
Invoice
9. Pay Prepayment Pay the Validated the invoice based on Same as Phase 1 Accounts Payable Fit Account
Invoice amount of Cash Advance. Manager Payables
10. Integration for Integration from Fusion to On Premise to Same as Phase 1 Integrated Gap Expenses
interfacing from On change the payment status. System
Premise to Fusion
11. Payment Status Payment status will be changed to ‘Paid & Same as Phase 1 Expense Manager Fit Expenses

Page 13 of 17
Business Function: Finance Process Owner : Farooq Ahmmad Bhuya
Process code : Employee Expenses Accounts & Finance
Business Blueprint PwC Consultant: Sandipan Sarma, Monojit
Mahapatra
Process Name : Employee Expenses Version : 1.0 Date : 27-Apr-2020

Available’.

Problem Areas Addressed

1. The current version of the application does not allow users to request cash advances in other currency than the ledger's currency. User can
instead to create expense reports in other currency, but they have to select the payment currency in ledger's currency. If the users create
expense reports in other currencies, Payment Requests will be paid from Payables.
2. User cannot apply manually a cash advance on the specific expense report. Conversion rates should be added in Manage Currencies.

Improvements Suggested in Envisioned Process

1
2
3

Page 14 of 17
Business Function: Finance Process Owner : Farooq Ahmmad Bhuya
Process code : Employee Expenses Accounts & Finance
Business Blueprint PwC Consultant: Sandipan Sarma, Monojit
Mahapatra
Process Name : Employee Expenses Version : 1.0 Date : 27-Apr-2020

6. Gap Analysis

Gap ID Process ID Gap Description Fit Gap Approach

EXP-01 & Integration from Fusion to On Premise to create Payable invoice
02 from Expense report or Cash Advance.
Integration from Fusion to On Premise to change the payment
status.
EXP-02 Enter the additional details in DFF followed by Step 1. Mentioned
the Employee name as well as employee code.
Custom Program need to be developed for
loading invoices. After completed the same
automatically created Standard Invoice or
Prepayment Invoice in On Premise.
Custom Program need to be developed for
loading invoices. After completed the same
payment status will be automatically changed.
Additional information shall be tracked through
DFF at the time of Cash Advance creation.

7. Reporting Requirements

8. Open Items
Open Item Process Description Date Resolution Date Closed
ID ID Opened
Account code wise Expense 27-Apr-20 3-May-20
category.
Category wise Manager Approval 27-Apr-20 3-May-20
or Audit Hierarchy.

Page 15 of 17
Business Function: Finance Process Owner : Farooq Ahmmad Bhuya
Process code : Employee Expenses Accounts & Finance
Business Blueprint PwC Consultant: Sandipan Sarma, Monojit
Mahapatra
Process Name : Employee Expenses Version : 1.0 Date : 27-Apr-2020

9. Process Flow Legends

Process Terminator

Standard Process / Step in Oracle Applications

Off Page Reference to Other Process/Sub Process

Process Document / Report

Custom Process / Manual Step

Decision Box

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