Financial

Financial Management
Safe Harbor Statement
The following is intended to outline our general

product direction. It is intended for information
purposes only, and may not be incorporated into
any contract. It is not a commitment to deliver any
material, code, or functionality, and should not be
relied upon in making purchasing decisions. The
development, release, and timing of any features
or functionality described for Oracle’s products
remains at the sole discretion of Oracle.
Solutions Mapped to Key Metrics
Revenue
COGS
DSO
Inventory
Margins
Assets
SRM    
CRM     
Supply Chain Planning   
ALM   
EPM      
Lean Manufacturing     
Distribution    
HCM   
Financial Management      
Demand-Driven Manufacturing
Solutions
EnterpriseOne Financial Management
Financial Management Integration
General Accounts Accounts Benefits of
Ledger Receivable Payable Integration
• Reduce
implementation time
Fixed Asset
Payroll
Accounting • Eliminate errors
Pre-built
associated with re-
Project Integration Procurement
Costing keying data
Management
(Job Cost)
• Lower costs
Change Contract
Management Management associated with
implementation,
maintenance, and
Advanced administration
Manufacturing Sales Order Maintenance
Cost
Accounting Management Management
Accounting
Financial Management Overview
• Centralized Entity • Customer/Supplier
Address
Definition & Maintenance Masters
Book
• Line of Business Details • Data Privacy
• Organization Structures • Budgeting/Planning
General
• Chart(s) of Accounts • Multicurrency
Ledger
• Financial Reporting • Consolidations
• Compliance
Accts Receivable Accts Payable Adv Cost Acct
• Customer Mgt • Vendor Mgt • Direct Cost
• Invoicing • Vouchers Capture
• Credit & • Payment • Indirect Cost
Collections Processing Assignments
• Netting • Bank/Cash Mgt • Profit Analysis
Organizational Structure
Companies:
Domestic Company Holding Company • Fiscal Date Pattern
• Base Currency
• Balancing Entity
New York Bicycle Chicago Bike Marketing Administrative
Supplies Warehouse Parts Warehouse Division Division
Business Units:
• Belong to a Company
Business Unit Chart of Accts • Own the Chart of Accts
Category Codes
5000 Revenues
• 30+ Category Codes for
Region Eastern 5005 Sales-Product A Grouping & Reports
Division Central 5200 Sales-Other
Product Parts 6000 Direct Costs
6010 Cost of Sales
Ledgers:
Accounts: Acct Category • Store Transactions and
Codes Balances
• Object + Subsidiary or Stat Acct 4200
Chart Fields (Flex Format) Type SG&A • Examples: Actual, Budget,
• Can Have Many Charts
Corp Acct 4210 Consolidation, Alternate
Currency, Units, etc.
• 43+ Category Codes for
Grouping & Reports
EnterpriseOne FMS Differentiators:
User Configurability Ease of Change
Category Codes Company A Company B
• Attached to all master data (Address Book,
Business Unit, Accts, Item, etc.)
• Allow users to configure purpose and values for Business Business Business
Business
reporting and ease of maintenance Unit 1 Unit 2 Unit 2 Unit 3
• Can be globally updated
EXAMPLE: Changes to regional rollup does not
require reclassification entries • Data Structure: allows for easy
reorganization (move business unit from one
Subledger company to another, change fiscal dates,
• Allows users to cross reference activity to change base or reporting currency)
something else in the system or a user defined • Account ID: users can completely revamp
value the structure or rollup of their chart of
• Provides additional dimensions without accounts without losing history
increasing chart of accounts
• Category Codes: give users a means to
• Populated manually or through subsystems
organize their data at the master level
• Can optionally be stored as GL balances
EXAMPLE: Expenses paid to a vendor can be
• Processing Options: user configurable
tracked by employee address book number rules that can be changed as needed
Accounts Payable
November
2004
Why Accounts Payable Matters
Impact of Accounts Payable
Satisfied Suppliers Hard Dollar Savings
 Paying suppliers on-time and  Discounts average 0.8% if

accurately fosters supportive payment is remitted within
supplier relationships 10 days
 Suppliers can have a direct and  For a company with $1.5
positive impact on: billion in annual supplier
Improved purchases this equates to
 Product quality
 Product innovation
Cash $12 million in savings
 Product delivery Flow
Accounts Payable Challenges
 Complex,
supplier-specific
payment terms
 Time-consuming
and expensive
invoice
processing
 Controlling cash
flow
Complex, Supplier–Specific
Payment Terms
 Complex,
supplier-specific
payment terms
2/15, net 45
 Time-consuming
2/10, net 30 £
$ Checks € EFT
and expensive $
US tax codes EFT ¥
invoice Checks
EFT 
processing NAFTA Bank drafts
EFT
2/10, net 30
1/10, net 60
flow
Time-Consuming and Expensive Invoice
Processing
 Complex,
Processing Costs per AP Invoice
supplier-specific
payment terms $8.50
Potential annual
savings of
$809,550
for a company
 Time-consuming Payment processing 180,000
and expensive invoices
invoice Reconciliation
?
processing
Data Entry
flow
Manual Electronic
Source: Gartner Research

Controlling Cash Flow
 Complex, Balancing
supplier-specific payments, discounts, and
payment terms cash on hand
Available cash
 Time-consuming Discounts
and expensive
invoice 1/10, net 30
processing Payment due
date
 Controlling cash Prepayment
flow
Amount due upon
receipt
Reconciliation
Accounts Payable Opportunities
JD Edwards EnterpriseOne
Accounts Payable Results
Strengthen Supplier • Improve supplier
Relationships responsiveness
Streamline Invoice • Save time

Processing • Save money
Manage Cash Effectively • Optimize cash

flow
EnterpriseOne Accounts
Payable Benefit
Strengthen Supplier Relationships
1. Support multiple payment formats
2. Honor unique supplier terms and conditions
3. Provide supplier self-service functionality

1. Support multiple payment formats
Benefits of
flexible payment
formats:
Paper
Check
• Honor supplier-
EFT EFT specific preferences
Paper
• Incorporate currency
EFT
Check and language
preferences
Bank
Cash
Draft
Bank • Pay each supplier
Draft uniquely
• Improve supplier
relationships
2. Honor unique supplier terms and conditions
Supplier A Supplier B Benefits of honoring

Billing Address: Seattle, WA Billing Address: Mexico City, Mexico terms and conditions:
Payment Type: EFT Payment Type: Draft
• Recognize and satisfy
Terms: 2/10, net 30 Terms: 2/15, net 60
supplier-specific
Tax ID: 14-5523-64 Tax ID: 38-59356-00
preferences
Currency: US dollar Currency: Mexican peso
Notes: Monthly prepayments Notes: Payment to parent account • Build and maintain
efficient, personalized
Supplier C Supplier D supplier partnerships
Billing Address: New York, NY Billing Address: London, UK
Payment Type: EFT Payment Type: EFT
Tax ID: 09-574924-1 Tax ID: 32-57483-1
Currency: US dollar Currency: British pound
Notes: EFT on 3rd day of month Notes: Recurring invoice

3. Provide supplier self-service functionality
Benefits of supplier
Supplier name self-service:
Open amount • Save time for suppliers

• Facilitate online
Due date resolution issues within
the AP system
Invoice numbers • Improve
communication
• Improve supplier
access to account
information
Payable Benefit
Streamline Invoice Processing
1. Leverage automatic processing
2. Support multicurrency and multiple language needs
3. Proactively examine duplicate invoices

1. Leverage automatic processing
Invoice #741 Benefits of

Supplier ID: VA249674 automated
Product: Campo bolts processing:
$8.50
Amount: 150 boxes
• Save money and time
Payment • Ensure maximum

discounts are applied at
all times
Reconciliation
$3.44 • Improve accuracy via
automatic calculation
Data Entry
and application of taxes
and discounts
Source: Gartner Research Manual Electronic

2. Support multicurrency and multiple language needs
Supplier: Beste Maschinenc Teile
Erste Strabe 43 Benefits of
Wurtzburg, Germany
Bank: Erste Vereinigle Bank global features:
Tax ID: 42-60013-D
Payment Instrument: Banks check
Payment terms: 2/10, net 60
Comments to include with
• Incorporate currency,
remittance: Vollstandig gezahlt language, and tax
authority preferences
• Improve
communication
Supplier: El Terminal Corp. Supplier: Erella I Pezzi Meccanici
Plaza de 4 Centrales Un Vicolo Della S4 Vie • Work seamlessly
DF, Mexico Roma, Italia
Bank: Primer Banco de la Bank: La Prima Banca across geographies to
dell’Italia
Tax ID:
Republic
24-5624-8 Tax ID: 30-10134-2
address specific
Payment Instrument: Cheque de Payment Instrument: Controllo dit supplier needs
banco serie
Payment terms: 1/10, net 30 Payment terms: 1/10, net 30
Comments to include with Comments to include with
remittance: Paguado por remittance: Pagato completamente
completo
3. Proactively examine duplicate invoices
Benefits of
proactive
examination:
• Quickly resolve and
reduce confusion
surrounding
duplicate invoices
• Improve monitoring
and control
• Help prevent future
duplicate payments
Payable Benefit
Manage Cash Effectively
1. Consider multiple variables before authorizing

payment
2. Customize control and payment of each invoice
3. Gain real-time access to supplier information

1. Consider multiple variables before authorizing
payment
Discount no
Benefits of
Pay later
offered? considering multiple
variables:
yes
• Take maximum
Balance > $5000
Forward
Pay later advantage of supplier
discounts
< $5000 • Support effective cash
management
Cash on no
hand?
Pay later • Meet suppliers’ terms
and conditions
yes
Pay now
2. Customize control and payment of each invoice
Customized Payment Options Benefits of custom

options:
Payment Terms Payment Status
• Due upon receipt • Approved • Facilitate accurate
• Fixed • Hold pending approval payments
• Net • Paid in full
• Proximate date • Retainage • Ensure control
• Split • Withholding tax and efficiency in
• Payment in process AP processing
Payment Instrument Payment Types
• EDI • Standard vouchers
• Check • Split payment
• Draft • Setup recurring
• Print check • Modify and delete entries
• EFT • Assign alternate payee
3. Gain real-time access to supplier information
Benefits of real-time
Supplier transaction history: information:
•Open amounts • Leverage purchasing

•Invoice, account, and PO power
•Payment history & status • Access timely and
•Voucher detail accurate information
on cash flow, aging,
and discount
Supplier opportunities
transaction
history
Feature and Functionality
Highlights
• Multiple payment methods
and terms
• Multinational currency
processing
• Side-by-side currency
comparison
• Online supplier ledger inquiry
• 1099 coding
• Supplier master information
Feature and Functionality Highlights
• Multiple payment methods and • Manual payment processing with or
terms without matching
• Multinational currency processing • Batch upload
• Side-by-side currency comparison
• Online supplier ledger inquiry
• 1099 coding
• Supplier master information
• Multiple voucher entry method
• Duplicate invoice detection
• Duplicate invoice notification
• Multiple language correspondence
• Invoice logging
• VAT, GST, and withholding tax
processing
• Side-by-side currency comparison • Multiple cash or bank accounts
• Online supplier ledger inquiry • Third-party payee
• 1099 coding • Split and partial payments
• Supplier master information • Supplier totals by general ledger
• Multiple voucher entry method numbers
• Invoice logging
processing
JD Edwards EnterpriseOne Accounts Payable
• Side-by-side currency comparison • Multiple cash or bank accounts
• Online supplier ledger inquiry • Third-party payee
• 1099 coding • Split and partial payments
• Supplier master information • Supplier totals by general ledger
• Multiple voucher entry method numbers
• Invoice logging
processing
EnterpriseOne Accounts Payable
Complete Integrated Flexible
• Complete and pre- • Pre-configured, • Business process
integrated set of pre-integrated for changes with no
modular rapid, predictable additional
applications deployment programming
• Built-in industry • Easy to maintain • Scalable to meet
specific functionality and operate with growing operations
minimal IT staff
• Real-time analytics • Modular deployment
and reporting • Integrated user
experience across
applications and
business
processes
minimizes training
Accounts Receivable
November 2005
Why Accounts Receivable matters
Impact of Accounts Receivable
Customer Relationship
• Process customer invoices
and payments accurately and Customer
in a timely manner
• Recognize customer-specific
Relationship
processing requests
• Manage customer accounts
across multiple Cash Flow
lines of business
• Minimize impact of damaged • Promptly and accurately
goods, late deliveries, other Credit Cash record cash receipts
• Accurately calculate and
errors Risk Flow apply taxes
and deductions
Credit Risk
• Evaluate credit worthiness rapidly
• Establish appropriate credit limits
Accounts Receivable Challenges
 Complex,
customer-specific
processing
requirements
 Time-consuming
and inaccurate
invoice, receipt,
and deduction
processing
 Ineffective credit
extension and
cash flow policies
Complex, customer–specific processing
 Complex,
requirements
customer-specific
processing
requirements EFT
£
CAN$ 2/10, net 30
 Time-consuming $ Checks EURO

EFT
$
and inaccurate US tax codes EFT ¥

Checks EFT 2/15, net 45
invoice, receipt,
and deduction NAFTA peso Bank drafts
2/10, net 30
processing 1/10, net 60 EFT
 Ineffective credit
extension and
cash flow policies
Time Consuming and Inaccurate
 Complex, Invoice Processing
customer-specific
processing Average Cost Average Time
requirements to Process to Process
Manual Invoice Manual Invoice
 Time-consuming 15 minutes
and inaccurate
invoice, receipt, $12.25
6 minutes
and deduction $6
processing
? ?
 Ineffective credit Manual Automated Manual Automated
extension and
cash flow policies
Ineffective use of credit and cash flow
 Complex,
customer-specific
processing Can you effectively balance
requirements cash flow and credit risk?
Cash Flow:
• Collection
 Time-consuming efforts?
and inaccurate • Account
aging?
invoice, receipt, • Recognition
and deduction of receipt?
processing Credit Risk:

• Credit worthiness?
• Credit limits?
• Credit extensions?
 Ineffective credit • Late payment
policies?
extension and • Fees, notifications?
cash flow policies
Accounts Receivable Opportunities
Accounts Receivable Results
Manage Customer • Strengthen
Accounts Effectively customer
relationships
Streamline Invoice, Receipt, • Save time

and Deduction Processing • Save money
Balance Cash Flow and • Optimize cash flow

Credit Risk • Minimize credit risk
Receivable Benefit
Manage Customer Accounts Effectively
1. Establish customer-specific preferences
2. Track and analyze customer payment history
3. Support line-of-business processing

1. Establish customer-specific preferences
Customer A Customer B Benefits of

Billing Address: Seattle, WA Billing Address: Mexico City, Establishing
Mexico
Payment Type: EFT Payment Type: Draft preferences:
• Work with each
Tax: WA State, City of Seattle Tax: VAT, NAFTA
customer uniquely to
Currency: US dollar Currency: Mexican peso
Notes: Monthly bill Notes: Ship to bill to address

improve relationships
• Honor customer
Customer C Customer D payment, conditions
Billing Address: New York, Billing Address: London, UK and terms preferences
NY
Payment Type: EFT Payment Type: EFT
• Incorporate currency,
Tax: NY State, NYC Tax: VAT

language, and tax
Currency: US dollar Currency: British pound
authority preferences
Notes: EFT on 3rd of month Notes: Ship to six warehouses
2. Track and analyze customer payment history
Detailed Payment History Benefits of tracking

payment history:
Customer: Hickens Corp. • Improve ability to
Payment History Details efficiently respond to
credit and collection
Jan 15 1% $2,500
issues
Jan 29 1% $10,000
• Improve customer
Feb 15 na $5,400 Detailed
communication
March 6 na $6,000 payment
history by • Identify and reward
June 14 1% $1,200 customer customers who
June 28 na $2,400 routinely keep their
July 6 1% $6,600 account in good
Oct 8 1% $2,500 standing
3. Support line-of-business processing
Customer #643 Benefits of line of

business processing:
Parent Company • Establish a single

customer number to be
• View by consolidated account used by multiple lines-
• View by individual account of-business (LOB)
• Maintain unique
Line of Line of Line of Line of contract, terms and
Business 1 Business 2 Business 3 Business 4 conditions, and AR
Customer 643 Customer 643 Customer 643 Customer 643 balances at each LOB
Terms & Terms & Terms & Terms &
Conditions
2/10, net 60
Conditions
2/10, net 30
Conditions
5/15, net 30
Conditions
2/10, net 30
• View consolidated
Current
30 day
$12,000
3,000
Current
30 day
$5,000
1,000
Current
30 day
$25,000
500
Current
30 day
$3,000
15,000
customer account
60 day 500 60 day 1,000 60 day 0 60 day 5,000 information at parent
Balance $15,500 Balance $7,000 Balance $25,500 Balance $23,000
Status GOOD Status GOOD Status EXCELLENT Status POOR level
EnterpriseOne Accounts Receivable
Benefits
Streamline Invoice, Receipt, and
Deduction Processing
1. Automatically create an AR record for each sale
2. Calculate discounts and taxes
3. Use AR and AP netting

Streamline Invoice, Receipt, and Deduction
Processing
1. Automatically create an AR record for each sale
Sales Order #436 Benefits of

Customer ID: VA249674 automating records:
Product: Hexagon Glue
• Save time by
Amount: 150 units
automating AR records
• Reduce errors resulting
Complete AR record: from manual inputs
Customer name • Promptly record any
Price deduction applied by
Terms & Conditions customer
Bill to information • Control adjustments,
Ship to information write-offs, and charge
Taxes backs
Processing
2. Calculate discounts and taxes
Benefits of
Automated
calculations (discount automatic
and taxes applied) calculations:
• Streamline workflow
• Speed invoice
Company User inputs processing
Quantity User inputs
• Reduce errors resulting
from manual input and
calculation
8.5% Automatic taxes
applied
2/10, net 30 Automatic
discounts
applied
Processing
3. Use AR and AP netting
Benefits of AR/AP
netting:
• Improve efficiency of
AR/AP netting
Toggle between AR and
AP tabs for instant process
access across
departments • Provide visibility into
critical financial data
• Allow accurate bank
account data via a
single interface
Easily select items for

netting
EnterpriseOne Accounts Receivable
Benefits
Balance Cash Flow and Credit Risk
1. Access real-time payment information
2. Establish user-defined credit and collection policies
3. Accelerate collection efforts

1. Access real-time payment information
Capture real-time
AR information Benefits of real-time
information:
• Gain accurate picture of

overall cash flow
position
• Obtain up-to-date
information for rapid
decision making
• Apply data to cash flow
Apply AR to cash forecasting
flow forecasting
2. Establish user-defined credit and collection policies
Customer Classification
Benefits of user-
Platinum Gold Silver defined policies:
Credit limit $1,000,000 $500,000 $250,000 • Recognize and treat
important customers
Payment due 60 days 45 days 30 days in timely and
appropriate manner
Delinquent 75 50 30
notes sent at
• Reflect customer
days days days
status with
appropriate customer
Delinquent
service level
fees 100 60 45
applicable days days days
after
3. Accelerate collection efforts
System Action Result Benefits of improved

collections:
Alert sent • Minimize time spent

to user working accounts with
EnterpriseOne minimal results
Accounts
Receivable
• Send user-defined,
policy-based
Automated
notice sent to delinquent notices or
• Set predefined customer fees
credit and
collection Proactively • Proactively increase
thresholds Increase your cash flow
• Leverage real- cash flow
time information

• Business process management
• Multinational currency processing
• Customer ledger inquiry
• Enterprise-wide consolidated receivables
• Enterprise-wide customer numbers
• Customer-specific payment and discount terms
• Parent/child account relationships
Streamline Invoice, Receipt, and Deduction Processing
• Business process management • Charge-back of disputed errors
• Multinational currency processing • Multiple cash application methods
• Multiple language correspondence • VAT on intercompany transfers
• Customer ledger inquiry • Automatic finance charge calculation
• Enterprise-wide consolidated receivables • Automatic interest on invoices
• Enterprise-wide customer numbers • NSF processing
• Customer-specific payment and discount • System-controlled invoice numbers
terms • Recurring payment reminders
• Parent/child account relationships • Bank statement processing
• Multiple voucher entry method • Receipt to general ledger account
• Payment processing
• Customized invoice creation
• Customized statement creation
• Deduction management system
• Rebilling disallowed discounts
• User-defined write-off criteria
• Parent/child account relationships • Bank statement processing
• Duplicate invoice notification • Credit management
• Payment processing • Customized collection process
• Customized invoice creation • Company-specific aging
• Customized statement creation • Detailed online audit trail
• Deduction management system • User-defined algorithms
• Rebilling disallowed discounts • Gain and loss calculation
JD Edwards EnterpriseOne Accounts Receivable
• Parent/child relationships • Bank statement processing
• Duplicate invoice notification • Credit management
• Payment processing • Customized collection process
• Customized invoice creation • Company-specific aging
• Customized statement creation • Detailed online audit trail
• Deduction management system • User-defined algorithms
• Rebilling disallowed discounts • Gain and loss calculation
Benefits JD Edwards EnterpriseOne
Accounts Receivable
• Complete and pre- • Pre-configured, • No programming
integrated set of pre-integrated for required for business
modular rapid, predictable process changes
applications deployment
• Scalable to meet
• Built-in industry- • Easy to maintain growing operations
specific functionality and operate with
• Modular deployment
minimal IT staff
• Real-time analytics
experience across
applications and
business
processes to
minimize training
Expense Management
Why Expense Management
Matters
Corporate Expenses Indirect Spending
T&E
Indirect
Spending
Travel and entertainment

Indirect Spending
account for 5% to 20% of
Accounts for 30% to 60%
indirect spending
of corporate expenses
Source: Aberdeen Group, July 2002
Expense Management
 Inaccurate and Challenges
uncontrolled
expenditures
 Time-consuming
and expensive
manual
processing
 Ineffective
preferred supplier
contracts
Inaccuracy Caused by Errors
 Inaccurate and
uncontrolled Unintentional Intentional
expenditures Errors Errors
 User error  Fictitious entry
 Time-consuming
and expensive  Late or missing receipts  Mischaracterization
manual
processing  Data entry error  Overstated expenses
 Duplicate entries  Multiple claims

 Ineffective
preferred supplier
contracts
Most Common Types of Employee
Fraud
 Inaccurate and
uncontrolled
expenditures 1. Theft of office items
 Time-consuming 2. Claiming extra hours worked

and expensive
manual 3. Inflating expense accounts
processing
4. Taking kickbacks from suppliers
 Ineffective
preferred supplier
contracts
Source: Ernst & Young LLP

Time Consuming and Costly Expense
 Inaccurate and
Report Processing
uncontrolled
expenditures Average Time to Average Cost to
Enter Expense Report Process Expense
(in minutes) Report
 Time-consuming
and expensive $45
manual 35 to 40
processing
? ?
 Ineffective Manually Automated Manually Automated
preferred supplier
contracts
Source: Business Finance Magazine and Aberdeen Group, March 2003

Preferred Supplier Contracts
 Inaccurate and Elements of Effective Preferred
uncontrolled Travel Supplier Contracts
expenditures Visibility
• Frequently used
airlines, rental cars, or
hotels?
 Time-consuming Visibility • Cities or geographical
regions traveled to
and expensive most?
manual HRMS
processing Enterprise
Applications
Enforceability Negotiations
 Ineffective
preferred supplier Negotiations
Enforceability
contracts • Based on accurate,
• Expenses made under
consolidated data?
contracts?
• Best possible contracts
• Reasons for exceptions?
negotiated?
Expense Management
Opportunities
EnterpriseOne Expense
Management Results
Improve Accuracy and • Adhere to
Control of Employee corporate policies
Reimbursements • Reduce fraud
Streamline Expense • Save time

Processing • Save money
Increase Bargaining Power • Reduce costs

with Preferred Travel • Improve travel-
Suppliers related services
Management Benefit
Improve Accuracy and Control of
Employee Reimbursement
1. Set up multiple expense categories and

reimbursement policies
2. Leverage built-in control features
3. Define unique per diem limits by city, region,

or country
Improved Accuracy and Control of
1. Set up multiple expense categories and reimbursement
policies
Benefits of Flexible
Setup
• Configure expense
rules to support your
company
reimbursement policy
• Establish multiple
rules to support
different tracking,
managing, and
reporting criteria
2. Leverage built-in control features
Benefits of Control
Features
• Enforce flexible and

customizable per diem
limits
• Increase compliance
with corporate expense
policies and limits
Warning for
exceeding per • Limit opportunities for
diem allowance employee fraud
3. Define unique per diem limits by city, region, or country
Pacific Northwest New York City

$70/day $105/day Benefits of Per Diem
Limits
• Enforce expense
rules with
geographically
specific and detailed
configuration
• Control spending by
travel destination
Southwest
Region
$85/day
Management Benefit
Streamline Expense Processing
1. Automate and configure the entering, approving,

auditing, and reimbursement of expense reports
2. Leverage built-in integration with core financial

systems
3. Apply employee credit card transactions directly to

expense reports
Streamlined Expense Processing
1. Automate and configure the entering, approving,
auditing, and reimbursement of expense reports
$45
Estimated
Ave. Cost
Yearly Savings*
Benefits of Automation
to Process
Expense
Report • Reduce the time
(dollars) <$5 $96,000
required to process an
expense report
Manual Automated
35-40
• Reduce the cost of
processing an expense
Ave. Time
to Process report
Expense • Provide employees with
Report
10-15 1,200 hours
(minutes)
prompt and accurate
reimbursements
Manual Automated *Based on processing

Source: Aberdeen Group & Business Finance Mag, March 2003 200 reports/month
2. Leverage built-in integration with core
financial systems
Accounts Benefits of Full

Payable
Integration
• Eliminate cost and
errors associated with
duplicate entry
General Expense
Payroll
Ledger Management • Provide faster
reimbursement cycle
times
• Reduce costs
associated with
Time
Contract implementation,
Project
Service maintenance, and
Accounting Costing
Billing
administration
3. Apply employee credit card transactions directly
to expense reports
Benefits of
Credit Card
Charges Automated
Cdn$200 Credit Charges
• Improve accuracy by
eliminating data
entry errors
• Save time when
filling out expense
reports
EnterpriseOne Expense Management
Benefit
Increase Bargaining Power with
Preferred Suppliers
1. Track airline, hotel, and car rental usage by

employees by city or region
2. Leverage travel spending information to negotiate

discounts with preferred travel suppliers
3. Ensure employees use and receive full benefits from

preferred travel arrangement
Increased Bargaining Power with
Preferred Suppliers
1. Track airline, hotel, and car rental usage by
employees by city or region
Top Rental Car Agencies Top Frequented Hotels
in the Northwest in Chicago
• Avis • Hilton Benefits of Tracking
• Hertz • Hyatt
• Enterprise • Marriott Spending with
Preferred Suppliers
• Increase visibility into
employee expenses and
travel and habits and
preferences
• Provide historical data
for stronger supplier
negotiations
Top Airlines used in California

• Southwest • Alaska
• United • American
Preferred Suppliers
2. Leverage travel spending information to negotiate
discounts with preferred travel suppliers
Benefits of Better
Contracts
• Receive larger
discounts from
preferred travel
suppliers
• Improve travel-
related services
for employees
Preferred Suppliers
3. Ensure employees use and receive full benefits
from preferred travel arrangement
Benefits of Exception
Notification
• Automatically collect
documentation when
an employee does not
use preferred travel
supplier
• Analyze exception
trends to better
Create Preferred negotiate meaningful
Vendor List
travel related
contracts and
services
Highlights
Improve Accuracy and Control of Employee Reimbursements
• Auditing capabilities • Location-specific policies
• Multiple employee • Multi-currency capabilities
authority
• Ability to charge to
• VAT tax calculations multiple business units
• User-defined policy • Automated exception
definitions notification
• Customized • Workflow approvals
reimbursement policies
• Individual or group
employee profiles
• User-defined per diem
functionality
Highlights
Streamline Expenses Processing
• Auditing capabilities • Location-specific policies • Processing of business travel
and relocation expenses
authority • Consistent user interface
• VAT tax calculations multiple business units • Simplified data entry for
expense reporting
definitions notification • Direct employee
reimbursement
reimbursement policies • Configurable
• Individual or group reimbursement process
employee profiles steps
• User-defined per diem • Ability to import expenses
functionality from off-line reports
• Direct credit card company
reimbursement
Highlights
Increase Bargaining Power with Preferred Travel Suppliers
expense reporting
reimbursement
reimbursement policies • Configurable • Ability to track expenses
by travel supplier
employee profiles steps • Automatic documentation
• Ability to import expenses of preferred supplier
from off-line reports exceptions
functionality
reimbursement
Highlights
PeopleSoft EnterpriseOne Expense Management
expense reporting
reimbursement
reimbursement policies • Configurable • Ability to track expenses
by travel supplier
employee profiles steps • Automatic documentation
• Ability to import expenses of preferred supplier
from off-line reports exceptions
functionality
reimbursement
Benefits EnterpriseOne Expense Management

modular rapid, predictable programming
• Scalable to meet
• Built-in industry • Easy to maintain growing operations
specific functionality and operate with
minimal IT staff
• Real-time analytics
experience across
applications and
business
processes
minimizes training
EnterpriseOne
modular Only Oracle offers a pre-
rapid, predictable programming
• Scalability to meet
• Built-in industry
integrated solution
• Easy to maintain growing operations
designed
specific functionality to maintain
and operate with
minimal IT staff
• Real-time analyticscontrol of employee
expenses while
experience across
facilitating
business growth
processes,
applications
Advanced Cost Accounting
Advanced Cost Accounting
Traditional Advanced Cost Improved
Accounting + Accounting = Performance
Do you know your Deliver precise, Product Profitability Customer Profitability

real costs by: accurate cost
Net Income
Revenue
1
information to:
• Customer? 2 3 4
• Improve visibility A B C
• Product?
• Strengthen fiscal Channel Profitability
• Channel?
accountability Direct
Indirect
• Facilitate more Internet
informed decision, Profitability
eliminate waste,
and focus  Actively manage customers,
resources products, and channels to
improve performance
Cost Accounting Opportunities
Advanced Cost Accounting Results
Analyze profitability
Capture Detailed Cost
based on accurate and
Information
complete data
Generate Accurate Cost Analyze profitability at

Assignments any level of detail
Analyze and Evaluate Improve managerial

Profitability decision making
Analyze and Evaluate Profitability Cost
Pool
Assignment of Shipping Costs Benefits of Scenario

Analysis
Identify Generic $525,000
1
Shipping Costs • Project future results
Assign costs at customer level based on
2 What-If Analysis
based on prorated # of sales orders assumptions Cost
Driver
3 Methodology
# of Sales Orders for Customer • Retain integrity of
Total # of Sales Orders original accounting
ACME NCT BAEF AMX records
4 Profitability Ranking
1 2 3 4 • Support better
5 Calculation 50/100 30/100 10/100 10/100 decision making
6 Assignment of Costs $262,500 $157,500 $52,500 $52,500
7 New Profitability
Ranking 3 1 2 4 Cost
Objects
Understanding Cost Objects
Automatically collect, track, and assign transaction
revenues and costs to products and customers
Transaction Systems Benefits of Cost
Sales Order Accounting
Objects
Manufacturing Transportation • Capture costs at the
Payroll Procurement lowest level possible
Brand Customer • Allocate cost from

• Inventory • Sales every transaction in
• Sales • Transportation
• Manufacturing • Manufacturing detail
• Payroll
Channel
Product Line
• Sales • Use automatic journal
• Accounting
• Accounting
• Transportation
• Manufacturing entries to capture
• Procurement detailed product,
Item Number
• Transportation
• Accounting material, labor and
• Payroll
• Transportation overhead costs
• Manufacturing
Understanding Cost Drivers
Cost Driver
Indirect Cost Examples Benefits of cost
drivers
Machine Depreciation Machine Hours • Analyze costs at profit
center and cost object
Advertising Costs Product Line Sales level detail
Transportation Costs Sales Orders Shipped • Assign costs based on

business drivers
Factory Overhead Work Order Completions

• Evaluate profitability by
customer, products, or
Warranty Costs Sales Volume channels
Flexible Assignments
Track a single cost driver against multiple cost objects
Benefits of Cross-
Cost Warehouse
Machine Hours Tracking Drivers
Square Footage
Driver
• Allocate cross-
department process to
multiple cost objects
• Understand the true

Cost costs of products,
Product Customer Item customers, or channels
Object Family Account Number
Brand
Level • Inventory • Inventory • Inventory • Inventory

handling handling handling handling • Utilize flexible reporting
costs costs costs costs capabilities to analyze
• Machine • Machine
Depreciation Depreciation profitability by multiple
dimensions
Generate Accurate Cost Assignments
Use pre-built and customizable cost drivers to assign
indirect costs back to a customer or product
Manufacturing Accounting
Benefits of Flexible
Marketing Inventory Assignments
Shipping
Sales
• Improve the
accuracy of analysis
Warehouse
Square Footage • Achieve more
Sales Orders
Machine Hours
meaningful and less
Shipped
arbitrary decision
Customer 04235 Product PM64 Direct Sales making
Costs Costs Channel Costs
Sales $16,000 Inventory $5,000 Sales $12,000
Marketing $10,000 Freight $10,000 Marketing $13,000 • Identify the cost of
Shipping
Service
$25,000
$9,000
Procurement $2,000 Accounting $5,000
cross-functional
Labor $20,000
activities
Cash Management
Short Term Cash Flow Forecasting
 Business Requirement:
 A user-friendly tool for creating short term cash flow
forecasts
 Enhancement Functionality:
 Cash flow forecasts can include general ledger, accounts
receivable and accounts payable transactions
 Functionality to assign weighting factors to different types
of transactions
 Capability to include or exclude past due documents in
calculations
 An inquiry screen to display results and a report output
Cash Type Rules Forms
Work with Cash Type Rules Revise Cash Type Rules
Creating Cash Forecast Report
Structures
 Defines the
reporting structure
and format
 Arrange cash type
codes into
reporting
hierarchies
 Predefined cash
type codes can be
automatically
included
Viewing Cash Forecast
Results
Short Term Cash Flow
Forecasting ReportSample report
produced from
cash forecast
inquiry
Planning and Budgeting
Planning and Budgeting Overview
• Forecast up to
15 years • Greatly reduces time and effort
• Unlimited to forecast or budget
Growth
• Conforms to today’s stringent
Patterns
compliance requirements
• Multiple
version • Improved decision-making
capability
• Improved responsiveness to
changing business conditions
Budget and Forecast Tool
• Enhancement: Budget and Forecast Tool
 Business Requirement:
 A budgeting and forecast tool that can easily
generate short or long term forecasts which can
then be committed to the general ledger
 Enhancement Functionality:
 Provide the ability to forecast accounts for 1 to 15
years
 Provide the ability to run multiple revisions of a
forecast
 Provide the ability to upload finalized forecasts to a
user defined ledger.
Creating Growth Patterns
Create fixed or percentage growth patterns
Growth patterns are

user defined and
can be setup for
percentages or
fixed amounts
Each growth
pattern can be
setup with custom
percentages for up
to 15 years
Assigning Growth Patterns to Business
Units
Growth patterns
created in step 1
can now be
assigned to a
business unit and
revision number
Reviewing/Adjusting Forecast Screens
View annual forecast amounts
View forecast by
account/period
Uploading Finalized Forecasts to Budget
 Forecasts can be uploaded to
the General Ledger
 The Apply Forecast to Budget Processing
options for
program populates the GL R1407 –
Apply
Balance File in a user
Forecast to
specified ledger Budget
 The forecast can now be

included in financial reports
 Review on inquiry screens
 Store multiple revisions in
different ledger types
Compliance
Financial Compliance
Building Effective Compliance Solutions
1. Systems-based internal controls
2. Automated processes
3. Consistent documentation
4. Ongoing control and monitoring
Solution Highlight: Process
• Manage Modeler
Business
Processes
• Visualize
• Change
• Document
• 650+ Built-in
Process Models
Publish and Report

Solution Highlight: Data Change
• Record changes
Tracker
made to key
database fields
including:
• Security Settings
• System Constants
• Automatic
Accounting
Instructions
• Track changes
using custom Review audit and
reports signature information
Solution Highlight: Foundation
• Create/Manage
Calendar
schedules for
compliance
tasks
• Automatic
notification of
exception events
via workflow Kickoff Meeting: Account for Asset Process
Review
• Direct integration
to MS Outlook
and Lotus Notes
Additional Internal Controls
• Workflow • Balanced Posting
• Processing Options Requirements
• Application Security • Valid Account Edit
• System Constants • Approval Limits
• Integrated Postings to GL • Credit Limits
• Budget Expenditure • Hierarchical Approval
Approval Routing
• Positive Pay • Posting Approval
• Expense Management • On-Demand Audit Trails
• Integrity Reports • Built-in Balancing Controls
• Batch Controls • Payee Control
FMS Conclusion
• 100% of EOne Customers Use FMS
• EnterpriseOne General Ledger is required by all
subsystems (cannot currently be decoupled)
• Core functionality of FMS is competitive in the
global ERP marketplace
• EnterpriseOne key differentiators are essential
tools for existing customers
 GL Centric Processing
 Truly REAL TIME integration
 Advanced Cost Accounting
 Subledger Functionality
 Organizational and Setup Change Tools

Financial

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Financial Management

Safe Harbor Statement

The following is intended to outline our general

 Paying suppliers on-time and  Discounts average 0.8% if

Source: Gartner Research

 Controlling cash Prepayment

Streamline Invoice • Save time

Manage Cash Effectively • Optimize cash

1. Support multiple payment formats

2. Honor unique supplier terms and conditions

3. Provide supplier self-service functionality

Supplier A Supplier B Benefits of honoring

Payment Type: EFT Payment Type: EFT

Terms: 2/10, net 30 Terms: 2/10, net 60

Tax ID: 09-574924-1 Tax ID: 32-57483-1

Currency: US dollar Currency: British pound

Notes: EFT on 3rd day of month Notes: Recurring invoice

Open amount • Save time for suppliers

1. Leverage automatic processing

2. Support multicurrency and multiple language needs

3. Proactively examine duplicate invoices

Invoice #741 Benefits of

Payment • Ensure maximum

Source: Gartner Research Manual Electronic

1. Consider multiple variables before authorizing

2. Customize control and payment of each invoice

3. Gain real-time access to supplier information

Customized Payment Options Benefits of custom

•Open amounts • Leverage purchasing

 Time-consuming $ Checks EURO

processing Credit Risk:

Streamline Invoice, Receipt, • Save time

Balance Cash Flow and • Optimize cash flow

1. Establish customer-specific preferences

2. Track and analyze customer payment history

3. Support line-of-business processing

Customer A Customer B Benefits of

Notes: Monthly bill Notes: Ship to bill to address

Tax: NY State, NYC Tax: VAT

Detailed Payment History Benefits of tracking

Customer #643 Benefits of line of

Parent Company • Establish a single

1. Automatically create an AR record for each sale

2. Calculate discounts and taxes

3. Use AR and AP netting

Sales Order #436 Benefits of

Easily select items for

1. Access real-time payment information

2. Establish user-defined credit and collection policies

3. Accelerate collection efforts

• Gain accurate picture of

System Action Result Benefits of improved

Alert sent • Minimize time spent

Manage Customer Accounts Effectively

Travel and entertainment

 Duplicate entries  Multiple claims

 Time-consuming 2. Claiming extra hours worked

Source: Ernst & Young LLP

Source: Business Finance Magazine and Aberdeen Group, March 2003

Streamline Expense • Save time

Increase Bargaining Power • Reduce costs

1. Set up multiple expense categories and

2. Leverage built-in control features

3. Define unique per diem limits by city, region,