ERP Intelligent Apps for Oracle Adaptive · Standing oers use a combination of adaptive...

Oracle AdaptiveIntelligent Apps forERP

Using Adaptive IntelligentFinancials

March 2020

Oracle Adaptive Intelligent Apps for ERPUsing Adaptive Intelligent Financials

March 2020

Part Number: E95998-07

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Authors: Adaptive Intelligent Apps for ERP Information Development

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Contents

Preface .................................................................................................................................. i

1 Overview 1Welcome to Adaptive Intelligent Financials .............................................................................................................................. 1

User Administration ........................................................................................................................................................................ 1

Accessibility ...................................................................................................................................................................................... 1

2 Intelligent Payment Discounts 3Early Payment Discounts .............................................................................................................................................................. 3

3 Supplier Opportunities 5Overview of Supplier Opportunities ........................................................................................................................................... 5

Supplier Categories and Filter Criteria ...................................................................................................................................... 7

Filter Suppliers ................................................................................................................................................................................ 8

Compare Suppliers ......................................................................................................................................................................... 9

4 Standing Oers 11Standing Oers and Campaigns ................................................................................................................................................ 11

Site Assignments ........................................................................................................................................................................... 11

Enroll Suppliers for Standing Oers ......................................................................................................................................... 12

Manage Enrollments .................................................................................................................................................................... 13

View Enrollments .......................................................................................................................................................................... 13

5 FAQs 15Why can't I select the APR value I want? ................................................................................................................................ 15

How do I change the campaign in my standing oers? ...................................................................................................... 15


Preface

PrefaceThis preface introduces information sources that can help you use the application and this guide.

Using Oracle ApplicationsTo nd guides for Oracle Applications, go to the Oracle Help Center.

Documentation AccessibilityFor information about Oracle's commitment to accessibility, visit the Oracle Accessibility Program website.

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i

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Preface

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Chapter 1Overview

1 Overview

Welcome to Adaptive Intelligent Financials Read this guide to learn how to set up and use early payment programs. Payments managers in Oracle Financials Cloudcan use the APR recommendations to oer ad hoc early payment discounts to their suppliers. Payment discountsmanagers in Oracle Adaptive Intelligent Apps for ERP can use the APR recommendations to add further value whenmanaging supplier enrollments in standing oers.

Supplier categories, combined with data from Oracle DataFox, help you identify target suppliers for early paymentdiscounts programs. You can use this data as input to help you make sourcing decisions when negotiating withsuppliers or managing standing oers for potential early payment discounts.

User Administration

The roles in Oracle Identity Cloud Service (IDCS) determine which tasks users can perform in the application. If youhave the appropriate privileges, you can manage users in IDCS and assign them to specic roles. Select the UserAdministration shortcut on the user menu to go to IDCS, where you can map users to roles. See Manage Oracle IdentityCloud Service Users for information about user administration.

Accessibility

You can use assistive technology products, such as screen readers, while you work in the application. You can also usethe keyboard instead of the mouse. The following table lists the supported accessibility features for Oracle AdaptiveIntelligent Apps for Enterprise Resource Planning.

Feature Description

Zoom

You can resize text up to two hundred percent without loss of content or functionality. This is a browserfeature and is not available within the application.

Contrast

Large-scale text, and images of large-scale text have a contrast ratio of at least 3:1. Other text andimages of text have a contrast ratio of at least 4.5:1.

Screen Reader

You can use screen readers. No special mode is required to enable it.

Timing Adjustable

If you experience problems being timed out of the application, your administrator can extend thesession expiration period in the seings in Oracle Identity Cloud Service.

1

https://docs.oracle.com/en/cloud/paas/identity-cloud/uaids/manage-oracle-identity-cloud-service-users1.html

https://docs.oracle.com/en/cloud/paas/identity-cloud/uaids/manage-oracle-identity-cloud-service-users1.html


Chapter 1Overview

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Chapter 2Intelligent Payment Discounts

2 Intelligent Payment Discounts

Early Payment Discounts

As a payment discounts manager, you control and manage dierent discounts to oer to your suppliers in exchange forpaying their invoices early. Here are two ways to oer early payment discounts to your suppliers:

• On an ad hoc basis for single payments

• Through standing oers for payment process requests

Ad Hoc DiscountsOracle Financials Cloud uses the adaptive intelligence models to calculate discount recommendations for singlepayments. When you create payments, you can accept the recommended APR for the discount or override it. Thediscount rate you accept, combined with the number of days paid early, determines the actual discount and paymentamounts. Ad hoc discounts are helpful when managing an unexpected early payment request.

Standing OersWhen you enroll a supplier into standing oers, you're creating a set of criteria for recurring oers over an agreedtime period. Standing oers use a combination of adaptive intelligence calculations with manual overrides that youspecify, such as APR and site assignment. Use the Supervisory Controls page as a starting place to view suppliers andmanage their enrollments. In your payment process request, select the options to take early payment discounts basedon standing oers.

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Chapter 2Intelligent Payment Discounts

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Chapter 3Supplier Opportunities

3 Supplier Opportunities

Overview of Supplier Opportunities Learn about your suppliers by viewing all the data collected about them, including past history of payments, pendinginvoices, and potential discounts oered. Use this data, combined with data from Oracle DataFox, to rene supplierselection for early payment programs and supplier negotiation. You can also view performance and predict howpotential discounts aect your overall business.

On the Supervisory Controls - Supplier Overview page, you can view these overall values for all suppliers in the businessunits you select:

• The current balance of all unpaid invoices

• The potential savings based on recommended discounts

• The total payments disbursed to all suppliers

• The total savings based on accepted early payment discounts to date

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You can view suppliers that match the categories you select, and lter the results by selecting more criteria. data youselect. The available ranges may change dynamically based on the business unit and category.

On the details page for a single supplier, you can do these tasks:

• Compare the supplier balance with the balance of all suppliers

• View the impact of potential discounts compared to discounts already achieved

• Assess the supplier balance and discount opportunity

• Compare the supplier's available discounts with those of all suppliers

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Supplier Categories and Filter Criteria When you view all suppliers, you can lter them by category to focus on a subset of suppliers. This table describes thecategories you can use to narrow results based on specic criteria.

Category Description

Not Enrolled Suppliers that have no current or future enrollments

Limited Working Capital Suppliers with a quick ratio below 2:1

Greatest Spend Top ten percent of suppliers with the highest aggregated monetary value of invoices

Most Dependent Suppliers that have a high dependency on your business, based on your annual spend with themcompared to their total annual revenue

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Category Description

Newly Added Most recent suppliers added within the past year

High Volume Top ten percent of suppliers with the greatest number of current and past invoices

You can use additional criteria to lter the results. This table describes the criteria and where their data values comefrom. Not all criteria apply to all categories.

Criteria Description Source

Total Spend Total value of current and past paid invoices Aggregation of payables data

Number of Invoices Range of the total number invoices Aggregation of payables data

Vendor Type Specic vendor category, such as supplier, tax authority, and federal vendor

The supplier record in Oracle FinancialsCloud

Industry Specic code if available that represents the primaryindustry for suppliers

Oracle DataFox

Dependency Your annual spend with the supplier divided by theirannual revenue. A higher number means the supplier ismore dependent on your business.

Aggregation of payables data and OracleDataFox data

Annual Revenue Range of publicly reported revenue for the most recentscal year

Oracle DataFox

Number of Employees Range of the total employees to indicate the size of thesupplier's organization

Oracle DataFox

Year Founded Specic calendar year that the supplier's organization wasformed. This value is useful to gauge whether a supplier isnew to the market.

The supplier record in Oracle FinancialsCloud

Filter Suppliers Filter suppliers by selecting a category, such as Newly Added. Rene results even more by selecting other criteria.

To lter suppliers:

1. On the Home page or the Home menu, click Supervisory Controls.2. On the Supplier Overview page, select a category.3. Select other lter criteria values.

The selections you see depend on the data stored for each supplier. If you don't see any criteria for the categoryyou selected, that means there's no data for suppliers in that category.

To clear a lter value, select All from the top of its list.

To clear all lters including categories, select the Clear All buon.

Note: If you refresh the page after selecting criteria for your lters, only the categories will remain selected.You will need to select the criteria again.

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Compare Suppliers You can learn more about suppliers by comparing these values:

• Outstanding balance

• Discounts taken from early payment oers

• Total payments disbursed

• Recommended APR

• Liquidity score

To compare suppliers:

1. On the Supplier Overview page, select a category and optional lters to narrow the results to the suppliers youwant to compare.

The results show all suppliers matching your criteria displayed in the grid view.2. Click the List icon to change the display of suppliers and expose the Compare buon.3. In the Select column, select the suppliers you want to compare.4. Click Compare.

Here's an example of the Supplier Comparison dialog box where you can compare outstanding balance,discount and payment amounts, APR, and liquidity score.

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10


Chapter 4Standing Oers

4 Standing Oers

Standing Oers and Campaigns

A standing oer is a way of extending early payment discounts to your suppliers on an ongoing basis throughenrollments. You can apply discounts in a payment process request for all applicable invoices that are ready for paymentbefore their due date. The amount of discount oered is dynamically adjusted over time based on the APR and thenumber of days paid early.

Each standing oer must be associated with a campaign before you can add enrollment details, such as supplier site,APR, and eective date range. Use campaigns to group standing oers in a way that suits how you work with yoursuppliers. You can create as many campaigns as you want and use them across multiple business units. When creating acampaign, you can dene the target APR to use as a guideline for standing oer enrollments.

This table shows some dierent ways to use campaigns.

Functional Grouping Scenario

Geography Australia's interest rate is percent higher than your suppliers' other countries, so to account for thatdierence, you use a campaign that has an increase built-in for the standing oer.

Supply chain vs. indirect spend A critical supply chain supplier might benet from preferential terms, so you use a campaign that canhelp them cash in early and potentially reduce lead time.

Small or local business To show support for local small businesses, you use a campaign to oer special rates.

Site Assignments

Before you enroll suppliers in standing oers, it's good to understand what site assignments do. When seing up a newsupplier record, a supplier manager assigns the supplier site to an existing business unit. The site assignment controlswhich business unit can transact with which supplier site. But in standing oers, the site assignment is what gives youthe freedom to enroll a supplier site for one business unit and not another. For example, you might want a dierent APRrate for standing oers based on geography.

On the details page for a supplier, you can view all the site assignments for that supplier related to one or more businessunits. Site assignments display in alphabetical order. This table describes more information about them.

Component Description

Site assignment name Name or code for the site assignment

Business unit Name of the business unit that the site is assigned to

Enrollment status Label indicating whether the supplier has ever been enrolled using this site assignment. Values arePast, Future, Current, and None.

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Component Description

Number of invoices Total number of invoices processed for this site assignment

Site balance Total outstanding balance pending for the supplier relative to this site assignment

Payments to date Total amount of payments disbursed to the supplier relative to this site assignment

Enroll Suppliers for Standing Oers A standing oer denes the APR and eective date range for dynamic early payment discounts. Each standing oer isapplied to one or more supplier site assignments. You create standing oers by enrolling suppliers.

A campaign must exist before you can enroll a supplier for standing oers. To create a campaign:

1. In the Campaigns box, click Create.2. Enter a name for the campaign.

For more information about campaigns and how to use them, see Standing Oers and Campaigns.3. Enter a target APR for the campaign.4. Click Create.

To enroll a supplier for standing oers:

1. On the Supplier Overview page, search for or lter for the supplier, and then click the supplier name in theresults.

2. Compare potential savings using the Good, Beer, and Best APR recommendations.

Tip: The APR recommendations are for comparison only. They can help you understand potentialsavings through any discounts oered so you can be sure you want to enroll the supplier.

3. Select a business unit.4. In the Standing Oers section, click Create in the Enrollments box.

Note: If the Create buon is disabled, that means no campaigns exist. Create a campaign before youcan create an enrollment.

5. Select the campaign to use for all enrollments for this supplier, then click Next.6. Select the site assignments you want to include.

All site assignments are selected by default, so you might want to clear all and then select only the siteassignments you want.

7. To change the APR from the recommended value, select the value to apply to the selected site assignments.8. To change the eective date range, select the date range you want to apply to the selected site assignments.9. Examine all the start and end dates to ensure there are no overlaps in date ranges. Make adjustments to avoid

overlaps.10. Click Next.

If there are errors, you may need to go back to resolve any overlapping dates, and click Next again.11. Review your selections, and then click Submit.

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Manage Enrollments You can modify existing standing oer enrollments to extend the end dates of site assignments or end the siteassignments you select. To stop oering early payment discounts to a supplier, you must end-date enrollments for eachbusiness unit where there are active site assignments.

To manage a supplier's enrollments:


2. In the Enrollments box, click Manage.3. Make the changes you want.4. Examine all the start and end dates to ensure there are no overlaps in date ranges. Make adjustments to avoid

overlaps.5. Click Next.6. If there are errors, click Back to go back and adjust any overlapping dates, and then click Next.

You might need to repeat this step until there are no errors.7. Review your selections, then click Submit.

View Enrollments

You can view details about previous enrollments for a specic supplier site assignment. These enrollment details alsoprovide an audit trail, for example, to investigate why some invoices were discounted.

You can view these enrollment details:

• Creation date

• Start date

• End date

• Status, such as current, past, and future

• Campaign name

• APR value

To view a supplier's standing oer enrollment details:


2. Select the business unit for the enrollments you want to view.3. In the Site Assignments section, search for the site assignment for the enrollments you want to view.4. In site assignment box, click View Enrollments.5. After you nish viewing the details, click Back to return to the supplier detail page.

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14


Chapter 5FAQs

5 FAQs

Why can't I select the APR value I want?

The standing oers pages prevent selecting an APR value that's out of the range already specied on the seings page.This limitation ensures that the APR is within the parameters of the program dened by the discounts administrator.Here’s an example of why this is a good thing. Say your company arranges nancing to cover the additional fundingrequirements for the accelerated payments. The APR on the loan is 6%, so the discounts administrator set the minimumAPR as 10%. This prevents you from oering any discounts that aren't lucrative for your company.

How do I change the campaign in my standing oers?

You can't change campaigns for any existing standing oers. But you can end-date all active enrollments and thencreate enrollments using the campaign you want.

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Chapter 5FAQs

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