streamline your financial close

7/29/2019 Streamline Your Financial Close

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Streamline Your Oracle Financials Close Process

FL OAUG November 15, 2010

Matthew BuschUC4 Software, Inc.


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Business Value$

The Hackett Groups studies show that

world-class companies spend 45percent less on their closing andreporting efforts than other companies,

which on average saves $5.5 millionper $1 billion in revenue. Thesesavings come, in part, from needing

fewer people and systems to scrubdata.

Galen Gruman, CIOHow IT Executives Can Help Speed Up Financial Reporting, CIO Magazine, March 15, 2007

http://www.cio.com/article/print/41039


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Sound Familiar?

Does your Organization have execution errors, and costly recoveryefforts due to human error in processing?

Do you have unreliable processing and reporting delays?

oes cr ca us ness n orma on a o reac execu ves n atimely and accurate fashion, delaying key business decisions?

Do technical and functional employees spend a disproportionateamount of time baby sitting processes?

Are you having difficultly scaling your manual processes to supportfuture company growth?


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If you answered yes, you may feel like this:


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Agenda

Common issues

Consequences

5

Solution

Targets for Automation

Solution Success Stories


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Common Business Challenges Visibility Over Entire Business Process

Lack of Control manual tasks

Difficulty in Auditing manual processes

Management of Critical Processes

Number of Steps Required to Complete Task

Failure to Detect Errors and notify

Delayed Response Between Departments

Sending Accurate Information to Partners

Business/IT Alignment


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Common OEBS Challenges

Oracle Workflow directs users to complete tasks, not automation.

Still must use Concurrent Programs (CPs) to complete job tasks.

Many CPs must be handled manually.

Concurrent manager is Oracle myopic.

Inte ration still relies on user initiation and intervention.

Coordination of Requests Beyond Core Application

File/Data Management

Delayed Error Notification

Potential Performance Bottlenecks

Data Corruption

Missing Service Level agreements


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Common Business ProcessChallenges

Multiple People and Departments

PackagedApplications

Cloud

Applications

Data

Warehouse

Databases Legacy

Applications

Applications, Databases, Operating Systems and Services


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Common Business ProcessChallenges


Error prone and costly manual processes

*


Cloud

Applications

Data

Warehouse

Databases Legacy

Applications


npre c a e even - r ven wor oa

Disconnected islands of automation

Lack of visibility, management & control


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Your Goal: Intelligent End-to-End Automation




DataWarehouse

Databases LegacyApplications


Packaged

Applications

CloudApplications

DataWarehouse

Databases LegacyApplications

To effectively deliver the right business information atthe right time at the lowest possible cost


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Common (but misguided?)Alternatives

Throw more people at the problem

Customize application code

Write additional custom code (Avg.Customization - $10k)

Customize Workflow

Live with Concurrent Manager


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Consequences

Loss of revenue Misstated Financials

Loss in share holder confidence

Increased costs Increase in staff

Custom development

Lack of timely and accurate data


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Solution: Automation

Manual: slower,error prone

Automated: faster,reduced errors


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Targets for Automation inOracle EBS

Manually submitted processes(typically non-SRS concurrent requests)

Parent/child/subchild tracking

Integration with other applications

Output Verification and Notification

Standardized and repeatable processes


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Non-SRS Concurrent Process - Open Financial Period


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Challenges Oracle E-Business Suite

Number of Operating Units

Number of Project Periods

Volume of Transactions

Time & Resource Constraints

Reporting Requirements

Tracking Spawned Child Processes

Interfaces Internal/External

Disparate Systems


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What are Financial Period Close Challenges?

Pain: Sheer volume of similar

manual processes with the resultingprobability of errors

Company ABC example: 5 Legal Books (Sets of Books)

10 Operating Units

5 Modules/OU AP, AR, FA, INV & PO

Organization has 250 Period Close

Process Flows


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Oracle Applications Period CloseProcess Accounts Payable

Purchasing

Accounts Receivable

Sequence M/EClosingDay

Application Comments

1 -2EOD

All, except Assets - Open nextperiod in all applications.

The sequence should be GL first, followed by AP, , and .This is the latest that the next periods can be opened inOracle for the a lications.

+ Assets

Assets

General ledger

2 -1

EOD

Oracle Payables Oracle Payables passes vendor invoices and payment

transactions to General Ledger - Final time on last day ofmonth after all transactions processed.3 -1

EODOracle Order Entry Cut off. Do not interface any other information

4 0EOD

Oracle Purchasing Oracle Purchasing passes receiving transactions to OracleGeneral Ledger. Oracle Purchasing also creates a liability foruninvoiced receipts; for your organization, it is at time ofreceipt.

5 -112:00EOD

Oracle Inventory Oracle Inventory passes information to General Ledgerinventory accounts.

6 1Lunch

Oracle Receivables Run the Auto Invoice process to import all transactions fromOracle Order Entry or any external legacy system. OracleReceivables passes customer invoices and paymenttransactions to General Ledger.

7 25:00 pm

Oracle Assets Oracle Fixed Assets passes information to General Ledgerasset and depreciation accounts.

8 35:00 pm

General Ledger Close Only upon receiving OK from Controller. Costing, MarginAnalysis and Sales compensation will be produced inGeneral Ledger during the close process.

+ General Ledg


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Accounts Payables


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Accounts Payable

Run the Payables Invoice Validation CP.

Query for incomplete payment batches .

Run the Update Matured Future Dated Payments Status CP.

Resolve all unaccounted transactions submit the Payables AccountingProcess.

Run the Unaccounted Transactions Report

Rerun the Payables Accounting Process.

Open the next A/P period.


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Accounts Payable (Continued)

Run the Unaccounted Transactions Sweep Program.

Close the current A/P period. Run the Payables Transfer to General Ledger Program.

Import and post the Payables Journal entries.

following reports: Accounts Payable Trial Balance report to reconcile

your accounts payable liability in your general ledger.

Posted Invoice Register report

Posted Payments Register report

Run the Mass Additions Create Program.


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Accounts Payables


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Purchasing


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Purchasing

Run the Receipt Accrual Period End Process concurrent

program.

Use the Purchase Price Variance Report.

Use the Invoice Price Variance Report to review theaccuracy of purchase order prices.

Review the Un-invoiced Receipts Register.

Close the Purchasing period

Open the next Purchasing period.


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Purchasing


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Accounts Receivable


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Accounts Receivable

Open the next A/R period.

Run the Revenue Recognition process.

.

Review Unposted Items Report for any unposted A/Rtransactions.

Run the AR Reconciliation Report to automaticallyreconcile customer receipts, transactions, and accountbalances.

Close the current A/R period


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Accounts Receivable


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Fixed Assets


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Fixed Assets Run depreciation for the prior period.

Process transactions(additions/retirements/movements/capitalizations)

If changes are identified, rollback depreciation and make theneeded changes are made.

Run Depreciation and close period which closes current periodand opens next period.

Reconcile Asset balance to GL Asset accounts


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Fixed Assets


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General Ledger


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General Ledger

Run Mass Allocation J/E process

Import and Post all system generated J/E for the current period

Run the user defined FSG reports

Re-run the user defined FSG report

Close the current GL period


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General Ledger


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Financial Close Without UC4 Workload AutomationSuite


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Financial Close With UC4 Workload Automation Suite


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What are the Key Benefits?

Standardization of Close Process across all OUs Best Practices

Automation of Close Process across all OUs Accurate & More FrequentReporting

Reduced Close C cle Time Timelier Re ortin

System and Process Integration

Audit Traceability

Conditional Logic Processing

Output Scanning and Notification

Allow resources to focus on higher valuejob functions.


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UC4 Oracle ApplicationsExtension

Shipping Since 1997 and validated by Oracle

Easily Import Oracle Concurrent Programs and Request Sets into UC4 Pass Dynamic Parameters to Concurrent Programs

Scan Output and Log Files

38

Complex Business Process Logic

Ad Hoc Job Interception


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UC4 Solution


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UC4

Solution


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UC4

Solution


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UC4 - Automated Solutions Payables Payment

Schedule (Checks)

GL Open and Close Periods

AR Statement Generation

MRP Tracker

AP Open and Close Periods

Mass Allocation Solution

AR Open and ClosePeriods

Financial Statement

Process Multi-Org Solution

GL Import and Post

AR WebLockBox Process

PA Open and Close Periods

PO Open and ClosePeriods

Reporting InstanceSolution

Inventory Open and ClosePeriods

Custom Legacy Interfaces

NOTE: The above modules/extensions/functionality will be delivered through a sold separate consultingengagement, and are not part of the core UC4 Application Manager software.


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Enterprise Integration

possibilities

43


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Customer Successes:Customer Objectives

Streamline & AutomatePeriod Close

Move to Production

Results Achieved

Reduced Manual Input

+ Automations Performed GL Import and Post

GL Open & Close

AR Open & Close

e uct on o nput rrors

Eliminate Period CloseReruns

Resource Re-assignment

Reduced Period CloseTime from 6.5 Days to13 hrs~ 75%

Reduction

Purchasing Open & Close

Inventory Open & Close AR - GL Transfer

Monitoring MRP Child Processes

Financial Statement Generator


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Customer Successes:

Customer Objectives

Streamline and Automateinterfaces from Oracle E-Business Suite to SiebelCRM

Re lace Home Grown

+ Automations Performed

Automation of month-end closeincorporating:

- Siebel

- InformaticaScheduling System

Results Achieved

Lights Out Operations forCRM Interfaces

Automated use of First Logicdata cleansing tools

Automated interfaces toData Warehouse

14 Month ROI

- Business Objects

- Oracle Financials

AR Interface to GL

AP Interface to GL

Inventory Interface to GL

Importing and Posting JEs from Sub-Ledgers


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Customer Successes:

CustomerObjectives Streamline and Automate

interfaces into and out of

+ Automations Performed

Automation of Interfaces into and outof Oracle E-Business Suite (Orders,Shipments, Invoicing)

Oracle E-Business Suite

Reduce Latency and Errors

Improve time to deliverorders

Results Achieved Enhanced Notification

Lights Out Operations forInterfaces

,NA (1), and Europe (10):

- AR Interface to GL

- AP Interface to GL

- Inventory Interface to GL

- Importing and Posting JournalEntries from Sub-Ledgers


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Who We Are+TUI

+Porsche

+ AerLingus

+Allianz

+ AOK

+ Bosch

+ Eon

+ Ebay +Xerox+Motorola

+ Panasonic

+Suzuki

+ Sony+GE

+ Ricoh

+ Sara Lee+Commerzbank

+ Fossil

+ Mazda

t

+

Argonaut

+Chevron

1,800+ customers in more than 50countries

More than 600 large enterprisecustomers

95% say they would buy UC4 again

260+ employees, and $75m revenue

20% license growth YOY

Top tier in Gartner and Forrester


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Contact Information

Regional Account Manager

Ronald Yon

[email protected]

Grant Chen: Oracle Solutions Director

[email protected]

+ - - -

UC4 Software Inc. :www.uc4.com

- -


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Questions?

streamline your financial close

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