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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
1
Atlanta OAUG Meeting December 05, 2014
Rolta Proprietary & Confidential December 7, 2014
ROLTA Where Expertise & Technology Meet
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Introduction
Shince Francis
- Fusion Financials
- Cloud Implementations
- E-Business Suite
- Co-chair for OAUG Cloud ERP SIG (http://clouderp.oaug.org)
Copyright ©2014 by Shince Francis
Rolta Proprietary & Confidential December 7, 2014
ROLTA Where Expertise & Technology Meet
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
3
Copyright ©2014 by Shince Francis
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
Copyright ©2014 by Shince Francis
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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
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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
6 Copyright ©2014 by Shince Francis
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Empower Business Enterprise Resource Planning Applications
Empower the
Modern Enterprise
Global Enterprise Grade Cloud ERP
Solution
Innovative ERP Solution
7 Copyright ©2014 by Shince Francis
• 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
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Oracle Cloud Platform
8
Applications
Software as a Service (SaaS)
HCM, ERP, Customer Experience
EPM, Industry Solutions
Social, Data
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Oracle Cloud Platform
9
Platform
Platform as a Service (PaaS)
Java, Big Data, Business Intelligence, Mobile
Database
Infrastructure as a Service (IaaS)
Computing capabilities
Storage
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Oracle Cloud Platform
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
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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
Fusion Accounting Hub
Reporting Cloud Service (R9)
Co-existence with Apps
Unlimited or 3rd party
applications
(On-Premise)
11 Copyright ©2014 by Shince Francis
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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)
12 Copyright ©2014 by Shince Francis
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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
13 Copyright ©2014 by Shince Francis
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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
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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
15 Copyright ©2014 by Shince Francis
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Case Study: Solution Highlights
16 Copyright ©2014 by Shince Francis
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
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Case Study: Solution Highlights
17 Copyright ©2014 by Shince Francis
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
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Case Study: Solution Highlights
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
18 Copyright ©2014 by Shince Francis
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Case Study: Solution Highlights
19 Copyright ©2014 by Shince Francis
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
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Case Study: Solution Highlights
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
20 Copyright ©2014 by Shince Francis
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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
21 Copyright ©2014 by Shince Francis
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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
22 Copyright ©2014 by Shince Francis
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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
23 Copyright ©2014 by Shince Francis
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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
24 Copyright ©2014 by Shince Francis
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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
25 Copyright ©2014 by Shince Francis
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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
Copyright ©2014 by Shince Francis
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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
• Order Management
• Service Contracts
• Accounts Receivables
• Project Costing
• Project Billing
• Third Party
Applications
• Order Management
• Accounts Receivables
• Costing
• General Ledger
Customer Acceptance
Payments
Revenue
Accounting
Copyright ©2014 by Shince Francis
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Fusion Accounting Hub
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
Fusion Accounting Hub
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
Fusion Accounting Hub
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
Copyright ©2014 by Shince Francis
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Accounting Hub Cloud Reporting Service
34 Copyright ©2014 by Shince Francis
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
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Accounting Hub Cloud Reporting Service
35 Copyright ©2014 by Shince Francis
Easy Setup in E-Business Suite to Connect to
Cloud Financials (once patch 19282049:R12.GL.B is applied)
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Accounting Hub Cloud Reporting Service
36 Copyright ©2014 by Shince Francis
Sunburst Visualization of Accounts
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Accounting Hub Cloud Reporting Service
37 Copyright ©2014 by Shince Francis
Mobile Optimized Financial Reporting Center
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Accounting Hub Cloud Reporting Service
38 Copyright ©2014 by Shince Francis
Mobile Optimized Financial Reporting Center
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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?
39 Copyright ©2014 by Shince Francis
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40 Copyright ©2014 by Shince Francis
Thank You
Shince Francis [email protected] http://clouderp.oaug.org