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Streamline Your Oracle Financials Close Process

FL OAUG November 15, 2010

Matthew Busch UC4 Software, Inc.

Business Value$
The Hackett Groups studies show that
world-class companies spend 45 percent less on their closing and reporting efforts than other companies, which on average saves $5.5 million per $1 billion in revenue. These savings come, in part, from needing fewer people and systems to scrub data. Galen Gruman, CIO
How IT Executives Can Help Speed Up Financial Reporting, CIO Magazine, March 15, 2007 http://www.cio.com/article/print/41039

Sound Familiar?
Does your Organization have execution errors, and costly recovery efforts due to human error in processing? Do you have unreliable processing and reporting delays? Does critical business information fail to reach executives in a timely and accurate fashion, delaying key business decisions? Do technical and functional employees spend a disproportionate amount of time baby sitting processes? Are you having difficultly scaling your manual processes to support future company growth

If you answered yes, you may feel like this:

Common issues Consequences Common (but misguided) Alternatives Solution Targets for Automation Solution Success Stories

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

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. Integration 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

Common Business Process Challenges

Multiple People and Departments

Packaged Applications

Data Warehouse

Cloud Applications


Legacy Applications

Applications, Databases, Operating Systems and Services

Common Business Process Challenges

Multiple People and Departments

Error prone and costly manual processes Unpredictable event-driven workload Disconnected islands of automation Lack of visibility, management & control

Packaged Applications

Data Warehouse

Cloud Applications


Legacy Applications

Applications, Databases, Operating Systems and Services

Your Goal: Intelligent End-toEnd Automation

Multiple People and Departments

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

Packaged Packaged Applications Applications

Data Data Warehouse Warehouse

Cloud Packaged Applications Applications

Databases Databases

Legacy Legacy Applications Applications

Applications, Databases, Operating Systems and Services

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

Loss of revenue Misstated Financials Loss in share holder confidence Increased costs Increase in staff Custom development Lack of timely and accurate data

Solution: Automation

Manual: slower, error prone

Automated: faster, reduced errors

Targets for Automation in Oracle EBS

Manually submitted processes (typically non-SRS concurrent requests) Parent/child/subchild tracking Workload management of ad hoc requests Integration with other applications Output Verification and Notification Standardized and repeatable processes

Non-SRS Concurrent Process - Open Financial Period

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

What are Financial Period Close Challenges?

Pain: Sheer volume of similar manual processes with the resulting probability 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 to Complete

Oracle Applications Period Close Process

Accounts Payable Purchasing Accounts Receivable
Sequence M/E Closing Day -2 EOD -1 EOD -1 EOD 0 EOD Application

Assets General ledger


All, except Assets - Open next period in all applications. Oracle Payables

3 4

Oracle Order Entry Oracle Purchasing

The sequence should be GL first, followed by AP, , and . This is the latest that the next periods can be opened in Oracle for the applications. Oracle Payables passes vendor invoices and payment transactions to General Ledger - Final time on last day of month after all transactions processed. Cut off. Do not interface any other information Oracle Purchasing passes receiving transactions to Oracle General Ledger. Oracle Purchasing also creates a liability for uninvoiced receipts; for your organization, it is at time of receipt. Oracle Inventory passes information to General Ledger inventory accounts. Run the Auto Invoice process to import all transactions from Oracle Order Entry or any external legacy system. Oracle Receivables passes customer invoices and payment transactions to General Ledger. Oracle Fixed Assets passes information to General Ledger asset and depreciation accounts. Only upon receiving OK from Controller. Costing, Margin Analysis and Sales compensation will be produced in General Ledger during the close process.

+ Assets + General Ledger

-1 12:00 EOD 1 Lunch

Oracle Inventory

Oracle Receivables

7 8

2 5:00 pm 3 5:00 pm

Oracle Assets General Ledger Close

Accounts Payables

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 Accounting Process. Run the Unaccounted Transactions Report Rerun the Payables Accounting Process. Open the next A/P period.

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. Reconcile Payables activity for the period using the 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.

Accounts Payables


Run the Receipt Accrual Period End Process concurrent program. Use the Purchase Price Variance Report. Use the Invoice Price Variance Report to review the accuracy of purchase order prices. Review the Un-invoiced Receipts Register. Close the Purchasing period Open the next Purchasing period.


Accounts Receivable

Accounts Receivable
Open the next A/R period. Run the Revenue Recognition process. Run the General Ledger Interface process. Review Unposted Items Report for any unposted A/R transactions. Run the AR Reconciliation Report to automatically reconcile customer receipts, transactions, and account balances. Close the current A/R period

Accounts Receivable

Fixed Assets

Fixed Assets
Run depreciation for the prior period. Process transactions (additions/retirements/movements/capitalizations) Run Depreciation without closing book If changes are identified, rollback depreciation and make the needed changes are made. Run Depreciation and close period which closes current period and opens next period. Reconcile Asset balance to GL Asset accounts

Fixed Assets

General Ledger

General Ledger
Run Mass Allocation J/E process Import and Post all system generated J/E for the current period Open the next GL period Run the user defined FSG reports Re-run the user defined FSG report Close the current GL period

General Ledger

Financial Close Without UC4 Workload Automation Suite

Financial Close With UC4 Workload Automation Suite

What are the Key Benefits?

Standardization of Close Process across all OUs Best Practices Automation of Close Process across all OUs Accurate & More Frequent Reporting Reduced Close Cycle Time Timelier Reporting System and Process Integration Audit Traceability Conditional Logic Processing Output Scanning and Notification Allow resources to focus on higher value job functions.

UC4 Oracle Applications Extension

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 Notification with Output and Log File attachments Complex Business Process Logic Ad Hoc Job Interception


UC4 Solution

UC4 Solution

UC4 Solution

UC4 - Automated Solutions

Payables Payment Schedule (Checks) GL Open and Close Periods AR Statement Generation MRP Tracker Receivables Transfer Process Multi-Org Solution GL Import and Post AR WebLockBox Process PA Open and Close Periods AP Open and Close Periods Mass Allocation Solution AR Open and Close Periods Financial Statement Generator (FSG) Process PO Open and Close Periods Reporting Instance Solution Inventory Open and Close Periods Custom Legacy Interfaces

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

Enterprise Integration possibilities


Customer Successes:
Customer Objectives Streamline & Automate Period Close Move to Production + Automations Performed GL Import and Post GL Open & Close Results Achieved AR Open & Close Reduced Manual Input Reduction of Input Errors Purchasing Open & Close Eliminate Period Close Inventory Open & Close Reruns AR - GL Transfer Resource Re-assignment Monitoring MRP Child Processes Reduced Period Close Financial Statement Generator Time from 6.5 Days to 13 hrs~ 75% Reduction

Customer Successes:

Customer Objectives + Automations Performed Streamline and Automate Automation of month-end close interfaces from Oracle Eincorporating: Business Suite to Siebel - Siebel CRM - Informatica Replace Home Grown Scheduling System - Business Objects Results Achieved - Oracle Financials Lights Out Operations for AR Interface to GL CRM Interfaces AP Interface to GL Automated use of First Logic Inventory Interface to GL data cleansing tools Importing and Posting JEs from SubAutomated interfaces to Ledgers Data Warehouse 14 Month ROI

Customer Successes:
Customer Objectives
Streamline and Automate interfaces into and out of Oracle E-Business Suite Reduce Latency and Errors Improve time to deliver orders + Automations Performed Automation of Interfaces into and out of Oracle E-Business Suite (Orders, Shipments, Invoicing) For each operating unit in APAC (5), NA (1), and Europe (10): - AR Interface to GL - AP Interface to GL - Inventory Interface to GL - Importing and Posting Journal Entries from Sub-Ledgers

Results Achieved
Enhanced Notification Lights Out Operations for Interfaces

Who We Are
+ + Bosch + Aer Lingus + AOK + Fossil Allianz + Ebay

+ Sony

+ GE + Panasonic +TUI +Xerox Motorola + Porsche + Ricoh + Sara Lee

+ +Suzuk i +Chevron +Commerzban k

+ Eon + Argonau t

+ Mazda

1,800+ customers in more than 50 countries More than 600 large enterprise customers 95% say they would buy UC4 again

260+ employees, and $75m revenue 20% license growth YOY Top tier in Gartner and Forrester

Contact Information
Regional Account Manager
Ronald Yon

Office: +1-239-304-8601

Grant Chen: Oracle Solutions Director grant.chen@uc4.com Mobile: 832-577-9060

UC4 Software Inc. : www.uc4.com