multinational implementation challenges - panel

Multinational Implementation Challenges - Panel

Northern California GEO Group Training Day Jan 24 2006Northern California GEO Group Training Day Jan 24 2006

Sponsored by theSponsored by the OAUG Multi-National Special Interest Group

Hans Kolbe, Celantra Systems, Inc. – Chairperson MN-SIGHans Kolbe, Celantra Systems, Inc. – Chairperson MN-SIG

Kranti Atluri, Silicon Storage Technology, Inc. Kranti Atluri, Silicon Storage Technology, Inc.

Nga Do, Salesforce.comNga Do, Salesforce.com

Paul Kirch, Independent ConsultantPaul Kirch, Independent Consultant

MN-SIG Panel - NorCal 2006

Goals of the Multi-National Special Goals of the Multi-National Special Interest Group? Interest Group?

- Cross-Module and Cross-Geographies- Processes and Issues specifically facing global or

multi-country Oracle applications users - Organize exchange of ideas and experiences - Take active role in OAUG Enhancement process

with Oracle Corporation- Synchronize with other SIGs and GEOs


Objectives of Global Implementation Workshops

• Communicate and Share Oracle Functionality Improvements, Third Party solutions and in-house solutions

• Collect Feedback for Oracle CAB and Liaison sessions • Communicate program and project experiences

Previous Multi-National SIG Workshops at Oracle Open World and at OAUG conferences in 2003-05, Paris June 2004, Oct

03, London June 03, NorCal July 2003).


Global Implementation Key Issues

• Key project and business decisions: – Central versus local or regional control– Containing and tracking variations without compromising integrity (DFF,

Transaction Types, COA etc.)– Customer, Vendor, Item global visibility, naming conventions, and maintenance – Project Management across countries and regions, central team, local teams,

external sources

• Key Oracle functionality issues remain: – Multi-org restrictions as related to Shared Services and Supply Chain Visibility– Uncertainty about Legal Compliance tools (Globalizations, GAE, VAT) and

varying legal requirements– Intercompany models are not sufficiently developed– Language issues (NLS, MLS)– Single instance Issues (Performance, Time Stamp, Sys Admin complexities)


MN SIG Workshop Results

Significant shift to Global Implementations with 11I Upgrade: consolidate instances, global COA, global or regional business processes, SSCs.

Biggest issues confirmed: Multi-Org, IC, Legal Compliance Better direction from Oracle required to avoid lengthy investigation and

verification by each individual client. Requesting recommendation of alternatives and complimentary tools. Example: Sales tax or Trade compliance). No Global Implementation is known without significant customizations.

Negative Feedback (if used at all): GlS, Global Accounting Engine, MLS, Multi-Byte, MRC, Euro Conversion,

Positive Feedback: Improvements to PA Accounting including cross-charging, OM, GL consolidation tools, IC Drop-Ship functionality in 11.5.9., Internal Sales Orders in 11.5.9 Patch Set H and 11.5.10. High hopes for Release 12 – to be confirmed.


S i l i c o n S t o r a g e T e c h n o l o g y, I n c.S i l i c o n S t o r a g e T e c h n o l o g y, I n c.S i l i c o n S t o r a g e T e c h n o l o g y, I n c.S i l i c o n S t o r a g e T e c h n o l o g y, I n c.

Norcal OAUG

April 20, 2023

International and Global Implementation

Karen McGrath

Assistant Controller


Company and Background

• SST is a leading provider of nonvolatile memory solutions

• Is a fabless company headquartered in Sunnyvale, CA

• Running on a single Instance with multi-org • 17 Legal entities in 12 countries• 24 Sets of Books with 5 inventory orgs, 5 have

sub-ledgers, the others are used for GL consolidation with TB entry

SST Proprietary and Confidential


Project Background

• Currently running on Oracle 11.0.3 since Jan 2000

• Use AR, AP, GL, FA, OE, PO, BOM, WIP, INV and Costing modules

• Large customizations include systems to process Vendor data and invoice automation

• Currently all ERP support is centralized in SV, CA with one person in Macao for local support on local time zone



Major Implementation Goals

• Plan to upgrade to 11.5.10 and implement OSFM, HRMS, I-

Procurement and ASCP in Phase II

• Plan to implement B2B solution with the trading partners to process

vendor data

• Implement Oracle as primary transaction system for most sub-

ledgers. Plan to implement multi currency and multi language

• Decentralize Accounting functions to offshore locations using local

language and local currency

• Phase out Local Accounting systems like UFS and VAT System

used in offshore locations and have everyone use Oracle ERP



Challenges and Concerns

• Uncertainty of VAT and local Accounting requirements

• Local HR requirements not easy to access to give requirements to the implementation team to setup

• Language issues and reporting requirements for local compliance

• Currency translations and reconciliations between Inter Company transactions



S i l i c o n S t o r a g e T e c h n o l o g y, I n c.

T H I N K B E Y O N D F L A S H . . .

T h i n k S u p e r F l a s h


Introduction

• Paul Kirch ([email protected], cell: 408-316-5899)• Independent Oracle consultant with 10+ years

experience with Oracle Apps• Specialized in international implementations, with project

experience in South America, Middle East, Europe and Asia, including Japan, PRC, and Taiwan

• CPA, MBA in International Finance, and a candidate for CFA (Certified Financial Analyst) designation

• Current Project: Full suite of Oracle apps in rollout to 40+ countries around the world, including China, India, Japan, 15 European countries, and the US

• Topic: Global Multi-org design at Portland-based company, with principal manufacturing sites in Hillsboro, Ore., Peabody, Mass, Acht, Netherlands, and Brno, Czech Republic

mailto:[email protected]


Multi-Org Alternatives

A) Standard Model - one SOB per country/currency; one legal entity/operating unit per legal entity. A country/legal based model.

B) “Inverted” Model – shared operating unit for shared business processes - local GL SOB for legal/statutory reporting. A business process efficient model.


Standard Oracle (“Silo”) Multi-Org Model

All Subsidiaries are Parallel Entities Ledger Consolidation

CentralL1410

Ger1462

Fra Swe Den Spa

Inventory

Fra1475

U.K1473

Ita1463

Swe1444

Den1432

Hol1461

Bel1442

Swi1465

Aus1415

Spa1467

PorNorEE Mea Fin

Pol14xx

Per Operating Unit : One Validation Org for VAT rates , One Planning Org , Global Master.


Enterprise Consolidation With “Push Down/Push Up” Model

IT FR DE HK SG

Company EuropeCompany Asia

and U.S

WW Consolidated SoB GL

Local Legal Adjustment Entries are booked at

country level

Book of Record

Eliminations and

Consolidations Entries


Shared Operating Unit ModelGeneral Concept

Unit A

Global Operating Unit GL, OM, AR, INV

Unit B Unit C Unit D Unit E Unit F

Shared Processes for

Sales and Service Entities

Entity Separation by Balancing Segment

Local Processes (AP, FA, Payroll…?)

Local Legal Adjustment Entries are booked at

country level


More versus Fewer Inventory Org TradeoffsIssue More Inventory

OrganizationsFewer Inventory Organizations

Global MRP and Global Visibility to WIP

Requires more MRP runs. No global MRP

Spares and MFG have different MRP requirements

Inter-org Transfer Transactions

More difficult as need to issue and receive

Not needed if move within 1 inventory org

Financial Transactions (AR and AP invoices)

Supported through Trading Networks

Not supported within 1 inventory org

Global Visibility to Inventory and Demand

More difficult with less visibility with > orgs

Less difficult (ideal is a single inventory org)

Ability to forecast and measure

More difficult without Advanced Supply Chain

Less difficult (ideal is a single inventory org)

Global Cost NA NA

Global Item Maintenance NA N/A

multinational implementation challenges - panel

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