Oracle Approvals Management (Approvals

Management Engine - AME)with iProcurement

Jan 17, 2007

Manoj DesaiDharmang Purohit

2© 2007 UBEX Corporation and TIBCO Software Inc. .

TIBCO Software Inc.

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Presentation Objectives

Business Case

Feature Description

AME Components Define Rule in AME Terminology

Solution overview

Implementation steps

Benefits

Lessons learnt

Questions

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Business Case

Situation prior to AME implementation Core purchasing approval structures within Oracle Purchasing based on:

Job Department Approval amount limits

Approval hierarchies maintained across 14 operating units.

Linear Employee/Supervisor approval hierarchy

Dummy job roles to facilitate budget review

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Business Case

Major pain points Maintenance issues

No possibility for creating global structure Approval hierarchies had to be maintained across 14 operating units Exceptions to Employee-Supervisor hierarchy were not handled

easily Approval cycle process issues

Inefficient budget review process – rejections require start from scratch

Project objectives Determine an approval structure to be maintained on a global basis Improve budget review cycle time

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Business Case - ROI

Cost of NOT implementing AME Manual data entry & testing to maintain 14 operating units – 8 hours per

month

Data entry errors and recovery

Longer requisition approval turnaround time

Cost of implementing AME Consulting - 70 person days

TIBCO internal – 36 person days

Return Manual data entry reduced by 95%

10% improvement in approval cycle time

7© 2007 UBEX Corporation and TIBCO Software Inc. .

Feature Description

What is AME? Oracle Approvals Management (AME) is a self-service Web application

that enables users to define business rules governing the process for approving transactions in Oracle Applications (where AME has been integrated).

AME is tightly integrated with Oracle Workflow

8© 2007 UBEX Corporation and TIBCO Software Inc. .

Define a rule in AME

Components of Rule are:

Attributes: requisition amount, department

Conditions: 5001 <= requisition amount <= 25000,

department = 84200

Approval: Pre-approval group + direct hierarchy

Rule

If

Requisition Amount between 5001 and 25000 USD

and

Department = 84200

then

require pre-approval from FA2 and approval in direct hierarchy up to absolute job level 6

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Terminology

Pre approval group = A group comprising of finance analysts responsible for budgetary approval (selected based on amount, department)

Chain of authority = The main approval group or employee supervisor hierarchy

Post approval group = A post approval group which can approve requisitions after the initial chain of authority based on conditions (amount, department, etc.)

Job Level = Approval Authority level associated while defining a job in Oracle HRMS

10© 2007 UBEX Corporation and TIBCO Software Inc. .

Solution Overview - Global Purchase Requisition Approval Hierarchy

Enter Requisition up to $1.5K

Line Mgr Approval

Enter Requisition

Up to 25K

Financial Analyst *

Director Approval

Dept VP *

Line Mgr Approval

Enter Requisition

Up to$50K

Financial Analyst *

Corporate Controller

CFO

Rule #1 Rule #4 Rule #5

Post approval group

Sr. Officer

Line Mgr Approval

Mid Mgr Approval

Enter Requisition

Up to $5K

Rule #2

Line Mgr Approval

Mid Mgr Approval

Enter Requisition

Up to $10K

Rule #3

Financial Analyst *

Sr Mgr Approval

Chain of Authority

Pre approval group

Sr Mgr Approval

Director Approval

Mid Mgr Approval

Sr Mgr Approval

Director Approval

Dept VP *

Line Mgr Approval

Mid Mgr Approval

Sr Mgr Approval

Corporate Controller

Defined in AME

Defined in AME

Job Lvl 3

Job Lvl 4

Job Lvl 5

Job Lvl 6

Job Lvl 7

Job Lvl 8

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11© 2007 UBEX Corporation and TIBCO Software Inc. .

Implementation Steps

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Benefits

AME helps you maintain your business logic associated with approval transactions globally from single window

Lets you cut down approval related workflow customizations, hence reducing the cost of ownership

Helps you leverage common expenditure policies across modules, thus consolidating your approval policy requirements

Any transaction is assured to be approved under the latest conditions, regardless of organizational changes, currency fluctuations or transaction data

Built-in testing utility to check the correctness of setup performed for both real-time and test transactions, hence reduces the need for elaborate testing cycles

Intangible benefits derived from solution design Reduced requisition approval turnaround times, thereby increasing the

efficiency of our procure-to-pay process Increased visibility of spending traits upfront to management chain

13© 2007 UBEX Corporation and TIBCO Software Inc. .

Lessons Learnt…

A well defined purchasing expenditure matrix helps to establish a solid foundation for creating approval rules in AME

Gaps within employee-supervisor hierarchy with respect to job levels can extensively affect desired functionality

It is always a safe practice to close down all in-process requisitions before going live with AME implementation

Analyze the impact of your implementation with other applications already using AME and also with other applications using employee-supervisor hierarchy for approvals

Identify your exception handling strategy upfront in case of any errors encountered during calculation of approvers by AME

Identify your requirements for segregation of duties aspect (SOX).

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Q & A’s

End

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