Utilizing EBS to Streamline Chargebacks for Internally Provided Services

Transcription

1 Utilizing EBS to Streamline Chargebacks for Internally Provided Services A Public Sector Case Study Prepared by: Kirsten Keller Corrice, Arlington Public Session ID: 10216

2 Agenda Introduction Challenges with manual internal chargeback process Goals to streamline process Review standard EBS functionality leveraged in process Configurations needed to implement solution Key benefits and managing change Q&A 2

3 Introduction

4 Kirsten Keller Corrice Oracle e-business Suite (EBS) functional lead and consultant, Big 4 consulting experience Over 14 years experience implementing, upgrading, and enhancing EBS for public sector organizations across the US Expertise in EBS Financials and application security/segregation of duties Certified PMP by Project Management Institute Currently support all aspects of EBS Financials for Arlington Public Schools, Virginia 4

5 Arlington Public Schools Located in Arlington, Virginia across the Potomac River from Washington, DC 33 schools and programs, 9 departments 27,000+ enrolled students hail from 96 nations and speak 81 languages 4,000+ full time employees Oracle e-business Suite Finance & HR, R GL, AP, AR, CM, iexp, PO, iproc, isupplier (on hold), SLA Questica Budget Software for budget development 5

6 Challenges with Internal Chargebacks Print Shop Chargebacks

7 Challenges with Internal Chargebacks Arlington Public Schools Print Shop Provides internal service - printing Prints everything for school system except high end items like business cards and letterhead Official school publications, e.g. Annual Budget Book, forms, training materials, posters Print shop absorbs cost of supplies up front After completion of print job, submits request for reimbursement to Finance 7

8 Challenges with Internal Chargebacks Print shop chargeback process mostly manual, paper intensive No software is used to record print jobs Print shop manually records print job Orders submitted by phone, or in-person Order recorded on paper log Upon completion cost manually calculated on paper Order details typed into word document receipt, printed and cut in half; sent to Finance and customer 8

9 Challenges with Internal Chargebacks Finance office manually records journal entry Finance receives paper receipts via interoffice mail Finance keys in charge account, cost, order description in journal form or Web ADI spreadsheet Debit the school/program account Credit the print shop chargeback account Average 28 journals and 1500 journal lines a year 9

10 Challenges with Internal Chargebacks Enter Journal: 10

11 Challenges with Internal Chargebacks Manual Reporting Paper and other materials used recorded manually on chargeback sheet Each chargeback sheet manually tallied to obtain monthly totals Monthly totals tallied to obtain year totals Limited transparency Unable to quickly and effectively answer process questions How much have schools spent on print jobs fiscal year-to-date? What is the average print shop cost? 11

12 Goals to Streamline Process Print Shop Chargebacks

13 Goals to Streamline Process Direction given to Finance staff to eliminate the paper chargeback requests Eliminate time-consuming, manual data entry Reduce Finance workload due to resource cuts Implement solution using APS resources software and people Quick turnaround time need solution in place by July 2016 Timelier accounting and reporting 13

14 Goals to Streamline Process Where possible, utilize tools familiar to users to reduce learning curve Oracle EBS Make Oracle EBS initial point of data entry Utilize standard EBS functionality available in Procurement suite to generate print shop costs Standard accounting features to eliminate manual journals 14

15 Review Standard EBS Functionality Leveraged Print Shop Chargebacks

16 Leverage Standard EBS Functionality New process summary Print Shop Office Still receives print job requests through , phone, or in-person Enter print job request into EBS iprocurement Create requisition from Blanket Purchase Agreement Select Print Shop Store and select items OR enter total amount of job PO Automatically Created/Approved Receive PO after print job completed 16

17 Leverage Standard EBS Functionality Create Requisition from Blanket Purchase Agreement: 17

18 Leverage Standard EBS Functionality Enter Special Information and Charge Account: 18

19 Leverage Standard EBS Functionality Submit Requisition: 19

20 Leverage Standard EBS Functionality Enter Receipt: 20

21 Leverage Standard EBS Functionality New process summary Finance Office Automatically create invoices by submitting Pay On Receipt AutoInvoice program Utilizes Electronic Receipt Settlement (ERS) functionality Standard Oracle EBS functionality to streamline invoice creation Supplier Site enabled for ERS/Self-Billing Invoices automatically created after receipt entered Kicks off Payables Open Interface program Program matches receipts to purchase orders Validate and approve invoice batches Run Payment Process Request to clear invoice 21

22 Leverage Standard EBS Functionality Run Pay On Receipt AutoInvoice Program: 22

23 Leverage Standard EBS Functionality Validate and Approve Invoices: 23

24 Leverage Standard EBS Functionality Submit Payment Process Request: 24

25 Leverage Standard EBS Functionality Invoice Accounting Debit school/program account Credit liability Payment Account Cash entry credits the print shop chargeback account Debit liability Intracompany balances funds 25

26 Configurations Needed to Implement Solution Print Shop Chargebacks

27 Configurations Needed to Implement Solution Pay Group Payment Method Internal Bank/Branch/Account Payment Process Profile Payment Process Request Template Create Supplier Create Responsibility Set Profile Options Create New Content Zone Update Existing Content Zone Create Local Store Define Information Template Setup Requisition Approval Limits Create Blanket Purchase Agreement, Upload Items Define Natural Account and Define Intracompany Balancing Rules 27

28 Configurations Needed to Implement Solution Pay Group (N) Payables Manager Setup Lookups Purchasing Define new pay group to separate internal invoices from other vendor invoices 28

29 Configurations Needed to Implement Solution Payment Method (N) Payables Manager Setup Payments Payment Administrator Pay Methods Technically not issuing any payment, so define APS Chargeback to properly identify the payment type Enable for Payables 29

30 Configurations Needed to Implement Solution Internal Bank and Account (N) Payables Manager Setup Payment Banks and Bank Branches/Bank Accounts Enable for Payables Cash Account hit Print Shop Chargeback clearing expense account Pooled Account = N Allow Zero Payments = Y 30

31 Configurations Needed to Implement Solution Internal Bank and Account (N) Payables Manager Setup Payment Banks and Bank Branches/Bank Accounts Add Payment Document 31

32 Configurations Needed to Implement Solution Payment Process Profile (N) Payables Manager Setup Payment Payment Administrator Payment Process Profile Define usage rules to restrict payment process to specific payment method and bank account 32

33 Configurations Needed to Implement Solution Payment Process Profile Set Payment Instruction Format to standard NACHA layout no files are being transmitted 33

34 Configurations Needed to Implement Solution Payment Process Request Template (N) Payables Manager Setup Payments Entry Payments Manager Templates Default values to streamline payment process, minimize errors Set Selection Criteria: payee, payment method, and pay group 34

35 Configurations Needed to Implement Solution Payment Process Request Template Set Payment Attributes: bank account, payment document, payment process profile Set Process Automation and Validation Failure Results options 35

36 Configurations Needed to Implement Solution Create Supplier (N) Payables Manager Suppliers Entry Address Book: Create Internal Site for Print Shop Chargeback Enable for Purchasing/Payables Enter and set default communication method to to orders 36

37 Configurations Needed to Implement Solution Create Supplier Set Supplier Site level defaults to enable ERS Purchasing Self Billing: Pay On = Receipt Invoice Summary Level Receipt Create Debit Memo from RTS Transaction = Yes Not applicable to our process 37

38 Configurations Needed to Implement Solution Create Supplier Set Supplier Site level defaults Payment Details: Payment Methods Add and select Payment Method = APS Chargeback Payment Specifications Pay Each Document Alone = Yes 38

39 Configurations Needed to Implement Solution Create Supplier Set Supplier Site level defaults Invoice Management: Invoicing Invoice Match Option = Purchase Order Payment Pay Group = Chargeback Terms Terms = Immediate 39

40 Configurations Needed to Implement Solution Create Responsibility (N) System Administrator Security Responsibility Define Exclude express receive to require end user to manualyl enter receipt date 40

41 Configurations Needed to Implement Solution Set Profile Options (N) System Administrator Security Profile MO: Operating Unit (Responsibility level) PO ERS Invoice Number Prefix = ERS (default) 41

42 Configurations Needed to Implement Solution Create Local Content Zone iprocurement Catalog Administration Stores Content Zones Include items from specific suppliers Secure by responsibilities 42

43 Configurations Needed to Implement Solution Update All Local Content/Main Store Content Zone (N) iprocurement Catalog Administration Stores Content Zones Exclude items from specific suppliers Necessary to not allow other users to access print shop chargeback items 43

44 Configurations Needed to Implement Solution Create Store iprocurement Catalog Administration Stores Assign new content zone 44

45 Configurations Needed to Implement Solution Define Information Template (N) Purchasing Superuser Setup Information Templates Capture additional information Assign to unique Item Category related to chargebacks 45

46 Configurations Needed to Implement Solution Setup Requisition Approval Limits (N) Purchasing Superuser Setup Approvals Approval Groups/Assignments Print Shop staff member has access to approve charges printing only 46

47 Configurations Needed to Implement Solution Define Blanket Purchase Agreement (N) Purchasing Superuser Buyer Work Center Agreements Load various items for print shop costs PO automatically created/approved upon requisition approval 47

48 Configurations Needed to Implement Solution Define Natural Account and Intracompany Balancing Rules (N) General Ledger Superuser Setup Financials Accounting Setup Manager Accounting Setups Intracompany Balancing Rules Define new object code to represent cash clearing - chargebacks Define intracompany balancing rule for Payables (source) Payments (category) All other APS payments (nonchargebacks) automatically balance by fund as pooled bank accounts 48

49 Key benefits and managing change Print Shop Chargebacks

50 Key Benefits and Managing Change Benefits Little impact to general end user base Solution built using all standard oracle functionality No development support needed, except for minor OAF extensions Shift workload for internal service provider (print shop) Data entered into software instead of onto paper Software validates data and pricing, minimize data entry and cost errors 50

51 Key Benefits and Managing Change Benefits Reduce time previously required by Finance to enter manual journals Finance now runs processes in Oracle that automate the accounting entries Data captured in Oracle EBS Timelier accounting Single repository for all transactional data Better reporting and transparency into how print shop is leveraged and supplies used Drilldown from expense to transaction, view all transaction level details 51

52 Key Benefits and Managing Change Managing Change Incorporated print shop user into design early-on in process Transition from 18-year manual process, limited technical skills Face-to-face meetings Prototype review More instruction required than anticipated Leverage User Productivity Kit (UPK) Sat with print shop user for first transaction entries **Made some changes to process to accommodate changes in Print Shop staff 52

53 Key Benefits and Managing Change User Productivity Kit: 53

54 Key Benefits and Managing Change Managing Change Processing schedule Biggest challenge ensuring transactions entered timely Developed a monthly schedule with date requirements Explained financial reporting requirements 54

55 Key Benefits and Managing Change Managing Change Customization/Personalization to iprocurement screens Apply this Cost Allocation information to all applicable requisition lines Make receipt date null no default value Receipt date drives invoice date 55

56 Q&A Session ID: Kirsten Keller Corrice, ERP Finance Functional Lead