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Rolta Proprietary & Confidential December 7, 2014

ROLTA Where Expertise & Technology Meet

NOTICE: Proprietary and Confidential. This material is proprietary to Rolta and contains trade secret and confidential information which is solely the property of Rolta. This material is solely for Client's internal use. This material shall not be used, reproduced, copied, disclosed, and transmitted, in whole or in part, without the express consent of Rolta.

Maximize Your Return on Investment via

Coexistence Strategy with ERP Cloud: An

Approach & Case Study

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Atlanta OAUG Meeting December 05, 2014



2

Introduction

Shince Francis

[email protected]

- Fusion Financials

- Cloud Implementations

- E-Business Suite

- Co-chair for OAUG Cloud ERP SIG (http://clouderp.oaug.org)

Copyright ©2014 by Shince Francis

mailto:[email protected]

http://clouderp.oaug.org/



Experience of Over 200 Projects Business Transformations

Over 175 implementations

Over 25 R12 Projects

Oracle Fusion / Cloud ERP

E-Business Suite, EPM and BI Practices

Integrated global delivery model

Advisory services on process improvements. Full lifecycle project management, implementation, migration, & support services

World class senior-level subject-matter experts in both Oracle Applications and supporting related technologies

Core Expertise in Financials, Supply Chain, Procurement, Projects, Manufacturing (Discrete and Process) HRMS, CRM, Technology and Fusion/Cloud ERP

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Rolta’s Oracle Applications Practice



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Contents

Introduction to Oracle Cloud ERP

Choices for Co-existence

Financials in the Cloud and Co-existence with On-premise Applications

• Case Study of Cloud Implementation

• Integration to On-Premise Manufacturing Application

Co-existence with Revenue Management Cloud Service

• Co-existence of Revenue Management with E-Business Suite

Fusion Accounting Hub

• Key Components of FAH

• Co-existence with E-Business Suite and PeopleSoft

• Accounting Hub Reporting Cloud Solution

Approach towards Adoption

Q&A




Co-existence

Co-existence of Applications Unlimited Products with Cloud ERP

Upgrade Applications Unlimited or move to Cloud and/or co-exist? Financials in Cloud and SCM/Manufacturing on-premise

Co-existence scenarios: Accounting Hub and Accounting Hub Cloud Reporting Service

Revenue Management in Cloud

Procurement Cloud

Project Financials and Portfolio Management Cloud

HCM, Talent Management and Payroll

5 Copyright ©2014 by Shince Francis



Oracle ERP Cloud

Oracle ERP Cloud

Fusion Financials

Oracle ERP Cloud

Financials Cloud

Financial Management

Financial Analytics

Expense Management

Collections & Revenue Management

Procurement Cloud

Strategic Sourcing

Contract Management

Procurement

Supplier Management

Supply Chain Cloud

End-to-End Material Flows

Inventory Management

Costing Innovations

Managing Costs

Projects Cloud

Project Financial Management

Project Management

Project Resource Management

PPM Analytics




Empower Business Enterprise Resource Planning Applications

Empower the

Modern Enterprise

Global Enterprise Grade Cloud ERP

Solution

Innovative ERP Solution


• Subscription to the Application (Software as a Service) http://cloud.oracle.com • Oracle owns the Software, provides Instances (pods) and DBA services • Upgrades performed by Oracle Cloud Operations

http://cloud.oracle.com/



Oracle Cloud Platform

8

Applications

Software as a Service (SaaS)

HCM, ERP, Customer Experience

EPM, Industry Solutions

Social, Data




9

Platform

Platform as a Service (PaaS)

Java, Big Data, Business Intelligence, Mobile

Database

Infrastructure as a Service (IaaS)

Computing capabilities

Storage




10

Marketplace

Online store to find Apps that can run in Oracle

Cloud

Developers can build Apps and publish in the

Marketplace

http://cloud.oracle.com

http://cloud.oracle.com/



Cloud ERP Modules

Financials

Assets

Advanced Collections

Cash Management

Expenses

General Ledger

Payables

Receivables

Revenue Management

Tax

Procurement

Purchasing

Self Service Procurement

Sourcing

Procurement Contracts

Supply Chain

Product Hub

Inventory

Cost Accounting

Receipt Accounting

Project Fin/Portfolio

Mgmt.

Cost Control

Billing and Contracts

Grants Management

Project Management

Task Management

Resource Management


Reporting Cloud Service (R9)

Co-existence with Apps

Unlimited or 3rd party

applications

(On-Premise)




Case Study: Client Profile Scenario: Financials in Cloud with SCM/Manufacturing On-Premise application

Industry: Durable Goods (Plastics

Components) Manufacturer

Locations: 12 Plants in US and one in

Mexico

Multi-language and Multi-currency

US and Mexico has separate financial reporting needs

with corporate consolidation requirement for

manufacturing facilities

Total of 7 legal entities: 4 in US and

3 in Mexico

Different accounting calendars in US and

Mexico

Financials and manufacturing were on

separate legacy application in each country (4 legacy

apps)




Case Study: Module Footprint

Financials

General Ledger

Fixed Assets

Accounts Payables

Accounts Receivables

Cash Management

Tax (Order to Cash and Procure to Pay process flows)

Procurement

Purchasing

Product Management

Items

Inventory Management

Inventory Organization and

Management

Purchase Receipts

Supply Chain Managerial Accounting

Cost Books

Receipt Accounting




Case Study: Application Footprint

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Oracle Cloud ERP Applications

Database

Application Server

Web Tier On-Premise System

External Banks Payroll System

External Applications




Case Study: Solution Highlights

Financial Reporting using FRC: Balance Sheet, Income Statement and Contribution Margin

Security enforced via Business Unit access and GL data security access

Intercompany relationship between manufacturing legal entities of US and Mexico as well as among manufacturing plants within US

Two Business Units.

One item management organization and two inventory management organizations

Ledger Set includes US Primary ledger, Secondary ledger with balance level transfer and adjustment ledger for eliminations

One Chart of Account

Two Primary Ledgers, one reporting ledger and one ledger set for consolidated reporting of manufacturing plants in US and Mexico






Account monitors were setup to monitor balances in critical accounts

One bank account in US for disbursements and fund capture

Two bank accounts in Mexico

Bank Statement loader configured for bank statement reconciliation

Use of ADFdi (ADF desktop integrator) spreadsheets for AP Invoice entry, AR Receipts entry, Budgets and GL Journals

One check format each in US and Mexico

Wire Payments in US and Mexico

ACH payment disbursements in US

VAT tax and multiple withholding tax configuration for Mexico in Payables





AR Transactions (invoices, credit memos and debit memos) were interfaced via automated File Based Data Import (FBDI) from in-house order entry application

Balance Forward Billing for AR Transaction consolidation

Location based sales tax setup to add tax to transactions. Setup to handle tax exemptions

Receipts interfaced via Lockbox file from Wells Fargo (Check Payments, ACH Payments and Wire Payments) as automated process

Auto-match setup based on one of the following criteria:

•Transaction Number, Consolidated Bill Number, Sales Order, Customer Purchase Order or Shipping Reference

Smart Receipts configuration to increase auto-match percentage

Receipts from other sources were created via ADFdi spread sheets




Fixed Assets books setup in US and Mexico

• One Corporate book each in US and Mexico

• Three tax books in US and one tax book in Mexico

Mass Addition of assets

Asset creation via ADFdi spreadsheets

Capitalization of CIP assets

Mass retirement of assets

Reinstatement of single asset

Run depreciation, calculate gain or loss on retirement






Co-existence and integration of Purchase Orders and PO Receipts between in-house manufacturing and Cloud ERP

Item based and description based purchase order lines with three way matching

One item management organization and two inventory management organizations were setup

Purchase Orders created/modified/cancelled in the in-house manufacturing application interfaced to Cloud ERP in real time

Purchase Receipts interfaced via automated FBDI process

Receiving, Correction and return to vendor receipt transactions

Purchase Price Variance and Inventory Balances were created as journal entries at month end




Sub-Ledger Accounting engine used to modify account derivations

• Sourced Fixed Asset accounts from Asset Category

• Variance Account and Accrual Account on Purchase Order derived using SLA mapping sets and account rules on transaction account builder

• Changed account segments on Receivables activities using SLA mapping sets

• Tax variance and invoice price variance accounts on AP invoice sourced via SLA rules

Reconciliation of AP and AR accounts to facilitate faster period close

Use of GL period close status monitor to get visual representation of sub-ledger close status in real time




Case Study: Inbound Integrations

• GL Journals from Payroll

• Bank Statements

• Customers

• Items

• Lockbox

• Purchase Orders

• Purchase Receipts

• AR Invoice from Order Entry

Inbound Integrations

• Automation of File Based Data Import (FBDI)

• Web Services

Integration Approach




Case Study: Outbound Integrations

Outbound Integrations

• Suppliers

• AR Transactions with Payment Details to 3rd party Collections

• GL Segments

• Active GL code combinations

• AP Invoice Details for Custom Work Order Tracking

• PO Receipts (for inbound corrections and return to vendor)

Integration Approach

• Scheduled BI Publisher report in Cloud ERP with eText layouts to text output to a SFTP server. In future, files will be sent to a Universal Content Management (UCM) Server

• Target Application polls the SFTP server to pickup file and process

• In future, use Web Service to download files from UCM server




Case Study: Data Conversion O

bje

cts

Co

nve

rted

General Ledger Balances

Customers with accounts, sites and contacts

Suppliers with sites, site assignments and contacts

Items

Fixed Assets

Open Accounts Payables transactions

Open Accounts Receivables transactions

Open Purchase Orders

Geography including Military States

Co

nve

rsio

n A

pp

roac

h Extract data from source

systems, create them into csv files in a pre-defined format (Oracle supplies Excel template for each object)

Zip csv files per conversion object and send to Cloud ERP

Run interface loader and import jobs to convert data




Case Study: Reporting

Several Custom Reports Created

Approach for Custom Reports

• Use BI Publisher with SQL query, predefined OTBI analysis and custom templates (RTF, eText)

• Use out of the box real time OTBI analysis to create custom analytical reports

• OTBI analysis can be created by business analysts

External Facing BI Publisher Templates

• Check Printing (two formats)

• AR Invoice with bursting

• Positive Pay file

• ACH file




Revenue Management: Co-existence Out of the box integration to E-Business Suite applications to extract and import data to Revenue Management in Cloud for revenue compliance and recognition

Source documents can be imported from

• Order Management

• Service Contracts

• Accounts Receivables

• Project Costing & Billing

• Project Billing Revenue Management features are enabled in EBS by integration patch (MOS Note: 1664398.1). Integration is enabled at EBS Ledger Level

Centralized repository for revenue recognition and compliance

Supports US GAAP Revenue recognition standards and can support new converged revenue accounting standards that will be effective as of Jan 2017




Revenue Management: Co-existence Supports multiple revenue recognition methods including immediate, ratable and deferred

Automatically calculate Fair Market Value (FMV) using Vendor Specific Objective Evidence, upload of third party evidence or estimated selling price

Automatically identify multiple element arrangements (MEA)

Create Revenue Accounting and integrate to EBS General Ledger

Use SLA in Cloud ERP to create your own revenue accounting rules (in addition to the out of the box rules)

Seeded dashboards and reports for review and reconciliation

Ad-hoc reporting via OTBI subject areas

References:

•http://download.oracle.com/ocomdocs/global/fusion_r8/fin/Revenue_Mgmt_Integrate_and_Transform/index.html

•Oracle Financials Cloud Introducing Revenue Management - Release 8 (Doc ID 1632525.1) 26


http://download.oracle.com/ocomdocs/global/fusion_r8/fin/Revenue_Mgmt_Integrate_and_Transform/index.html

http://download.oracle.com/ocomdocs/global/fusion_r8/fin/Revenue_Mgmt_Integrate_and_Transform/index.html



Revenue Management: Co-existence

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• Manage Compliance

• Create Schedules

• Create Accounting

• Audit and Analyze

Ora

cle

Clo

ud

Rev

en

ue

Man

age

me

nt

Serv

ice

Revenue Sources


• Service Contracts


• Project Costing

• Project Billing

• Third Party

Applications



• Costing

• General Ledger

Customer Acceptance

Payments

Revenue

Accounting




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Part of Fusion Financials, provides complete set of accounting tools and access to financial data

Supports all financial management and analytical reporting needs

As an integration platform, provides a consistent and controlled view of accounting data from all sources

As a reporting platform, provides exceptional reporting and analytical capabilities

Flexible approach to adoption of Fusion Applications

Leverage existing investment in E-Business Suite or PeopleSoft via pre-built integrators




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FAH – Key Components

Fusion Accounting Hub Centralized Accounting

PeopleSoft GL R12 E-Business Suite GL Other External

Systems

Journal Entries

Pre-aggregated

GL balances in Cubes

Allocation Engine

Sub-Ledger Accounting

Engine

Enterprise Performance Management

•Financial Consolidation •Planning & Budgeting

Financial Reporting & Analysis

•Financial Reporting Center •Account Monitor & Account Inspector •Smart View via Excel •BI Publisher •Oracle Transactional Business Intelligence (OTBI) for Ad Hoc Analysis •Analytical Dashboards PeopleSoft

Sub-Ledgers EBS

Sub-Ledgers

Oracle Fusion Sub-Ledgers

Load Actuals

Drill Down

Wri

te

bac

k

Budget Write back

Drill Down

Dri

ll D

ow

n

Dri

ll D

ow

n

Hyperion Data Relationship Management




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FAH as Reporting Platform

Reporting Tool Capabilities

Financial Reporting Center FRC •Users can view P&L and Balance Sheet reports •Report automatically shows real time balances when users open it •Embed charts and graphs to enhance user experience •Ability to drill down from reports to journals

Account Monitor and Account Inspector

•For better monitoring and control of journal entries •Account Monitor allows users to define critical accounts, thresholds and rules •Drill down from account monitor to account inspector •Account inspector provides pivot table like analytical capabilities to slice and dice balances



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Coexistence with E-Business Suite

EBS General Ledger

Coexistence

Mappings •Ledger •Calendar •COA

Balance Transfer Program


Oracle GoldenGate

Transfer

Drill Down

Move data from EBS to FAH

Register EBS General Ledger




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Coexistence with PeopleSoft

PeopleSoft General

Ledger Coexistence

Mappings •Ledger •Calendar •COA •SetID & other Mappings

Application Engine Program


Oracle Data Integrator (ODI)

Transfer

Drill Down

Move data from PeopleSoft to FAH

PeopleSoft Import & Transform Program

Journal Import




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Coexistence with Non Oracle Sources Accounting Transformation Process

Analyze current system and determine which source system needs to be reported via FAH

Register the source system transactions and activities with financial impact in FAH to make them eligible for accounting

Create accounting rules to determine how each accounting event should be accounted

Group rules together and assign to ledgers

Create complete definition of accounting treatment for transactions for each source




Accounting Hub Cloud Reporting Service


New service starting Release 9 available in the Cloud

Pre-built integration available with Oracle E-Business Suite R12.

•Available as patch 19282049:R12.GL.B

Default setting of 2 hours to transfer balances (configurable) from EBS to Reporting Cloud

Ability to define additional hierarchies for reporting

Only supports one EBS instance for streaming (even with same COA)

Ability to drill down from Cloud Reporting to EBS transaction

Use Financial Reporting Center (FRC) tools to create visually appealing state of the art financial reports

New simplified mobile optimized interface for FRC

Sunburst visualization tool to get different perspectives on your account balances





Easy Setup in E-Business Suite to Connect to

Cloud Financials (once patch 19282049:R12.GL.B is applied)





Sunburst Visualization of Accounts





Mobile Optimized Financial Reporting Center



Approach Towards Adoption

• If you are on R12.1.3+ on E-Business Suite, consider revenue management cloud service

Have complex revenue recognition

requirements?

• Consider Accounting Hub Reporting option if you have sophisticated financial reporting needs

Bored with FSGs?

• If you are on 11.5.10 or on R12.0 and need to upgrade, consider moving financials to cloud and co-existence with SCM/Manufacturing on-premise applications

Thinking of Upgrade?





Thank You

Shince Francis [email protected] http://clouderp.oaug.org

mailto:[email protected]

http://clouderp.oaug.org/

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