ARDS Webcast 2014

transcript

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 decision. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.

Safe Harbor Statement

Oracle E-Business Suite ChRM – AR Deductions Settlement

Archana Vadya Director, EBS Product Management Vijay Hotanahalli Group Manager, EBS Product Management

Program Agenda

Current Challenges

Overview of Oracle AR Deduction Settlement

End to End Flow

Roadmap

Accounts Receivables Deductions Settlement – Manages complete settlement lifecycle for financial programs and AR disputes

Channel Rebates and Point of Sale Management – Manages complex pricing agreements and revenue management for direct

selling programs – Imports, validates and cleanses channel POS data to track 3rd party

inventories and validate complex pricing agreements based on indirect sales data

Supplier Ship and Debit (New in 12.1) – Automates special price requests for wholesale distribution and streamlines

ship and debit claim process Price Protection (New in 12.1)

– Orchestrates price protection processes when supplier changes price of product

Release 12.1 – Channel Revenue Management

Accounts Receivable Deductions & Settlement

World is Changing…… Deductions can be difficult to research and settle

Communication

BackOffice Integration

• $10 Billion annually in the US alone • Growing 20% per year • ~14% are found to be invalid • ~5% per year are written off

• Dispute investigations are manual and labor intensive • Many Financial systems lack visibility into claims and dispute resolution status • Customer compliance mandates around claims processing on the rise

Quick Win – Manual Cash Application

CHALLENGE CASH APPLICATION • Laborious Process • Prone to Errors • Time Consuming

QUICK WIN AUTO LOCKBOX

• Automatic Receipt & Deduction Creation

• Match 90% or more remittances

• Huge time and resource saving opportunity

Quick Win – Open Balance Netting

CHALLENGE

QUICK WIN CUSTOMER OPEN

TRANSACTIONS • Large open credit & debit

transactions on customer account

• Lack of visibility

MASS SETTLEMENT • Systematic netting process • Effective customer

transactions enquiry • Offset open debits with

open credits

Quick Win – Dispensable Research

CHALLENGE

QUICK WIN

RULE BASED SETTLEMENT • Automatic matching of

deductions to credits • Automatic matching of

deductions with open accruals

DILIGENT RESEARCH • Avoidable Research • Too many manual tasks

followed by research • Time consuming

Overview

Highly Automated Processes

• Manages complete settlement lifecycle for financial

programs and AR disputes • Increased visibility to outstanding liabilities and claims • Integrated Claims Management minimizes claim

investigation and processing costs, reduces DSO for disputes

• Eliminate invalid claims, reduce costs and invalid payments

• Automate end to end deductions and claims processing

AR Deduction Settlement

AR Deductions Settlement

Collections

*AR Deduction Settlement

Accounts Receivables

Claims

Settlement

Claim Information Chargeback

Monitor and Collect

Capture Deductions

Settle Deductions

Functionality

• Dispute/deduction handling • Rebates Settlement • Promotional Payments View • Complete AR processing • Lockbox integration • Subsequent Receipt

Application • Auto-write offs • Mass Settlements • Claims Aging

• Detection of write-off threshold abuse

• Identification of Double Dipping/Payments

• Identification of process problems

• Calculation of total cost-to-serve

• Claims Aging View

• Promotional Balance Tracking

Enable Claims Analysis

Product Quality Problems

Other/Unknown Reasons

Post Audit Activities

Various Penalty Charges

Shipping & Dist Discrepancies

Trade Promotions

Pricing Errors

Packaging Issues

Claims Repository

Demonstration

Business Flow

Create Claim/DED

Assign Owner

Research Approve & Settle

• Minimize the cost and time required to clear claims & deductions • Identify and collect invalid claims • Proactively prevent deductions • Efficiently process promotional payments

Adjust Financials

AR Deductions & Settlement

Deduction Creation in AR

Automatic claim creation in Accounts Receivables

Summary View for Deductions/Claims

Claims assigned to user along with other critical data like claim type, reason, status, amount.

Claim Detail View

Automatic Owner Assignment

Subsequent Receipt Application

Claim History

Associate Earnings to Deductions

Associate Earnings screen lists all unpaid accruals for the customer

Settlement Flow

Closed Out Claim

Claims in closed status automatically update your ERP systems

AR Credit Memo Details

Settlement document details are populated back into AR Deduction Settlement for easy and seamless tracking

Mass Settlement

Mass settlement enables netting of open AR transactions

Promotional Payments

Track Customer Balances

Extensions for Oracle Endeca

Open Claims

Results Table & Claim Details

Drill Down to Claim Details

Claims Mass Update- Demo

Closed Claims

What’s New in 12.2.3

Offers Improves product ease of use Consolidate Off Invoice & Accruals

in 1 Offer Leverages Oracle Applications

Framework

Claims & Deductions Current year earnings defaults Single click to resolution Minimize DSO of disputes

Channel Revenue Management Simplified User Interface for Key Business Flows

Future Roadmap

Oracle Applications Planning Oracle E-Business Suite ChRM Current Release and Roadmap

AR Deductions Settlement • New Rule Based Settlement • Full Multi Currency FX GL Calculations • SLA Uptake

Channel Rebates & POS Management

• New Flexible & robust accounting rules

Oracle Supplier Ship & Debit • New Flexible & robust accounting rules • Adjustment support for SSD • Costing support for accruals

Oracle Price Protection

• Enhanced adjustment & approvals

Streamlined flows built with OA Framework • Claims • Offers

• Endeca Claims Reports

Channel Rebates & POS Management • Performance enhancements for Net

Accruals & Chargebacks • Ability to calculate accruals for POS in

draft mode

Oracle Supplier Ship & Debit • Partial Batch Reprocessing • Backdated Support for direct & indirect

Oracle Price Protection

• Inclusion of internal transfers

AME Integration for all ChRM products AR Deductions Settlement

• Settlement Screens in OA • Ongoing Endeca Integrations • Mass Update Capabilities • Misc. Customer Enhancements

Channel Rebates & POS Management

• Completion of Offers in OA • Cascading Offers • Volume Offer ERs to backdating flows • Ongoing Endeca Integrations • Flow through offers • Sellers Workbench with OM

Oracle Supplier Ship & Debit

• Vertical Industry Support

Oracle Price Protection • Sell side support

Release 12.1.3 August 2010

What’s Next 0-12 month planning cycle

Future Directions Post 12 month planning cycle

What Customer Are Saying…. BENEFITS: Reduced Dollar amount of open claims by 74% in a one year period

Reduced Weighted Average Days Open from 135 days to less than 60 days

Able to reallocate 8 resources from claims administration to more value added cash collections

“ The benefits of this particular improvement are many. We see increased productivity, a substantial reduction in cycle time, elimination of manual processes, and real-time measurement, all achieved through sustainable automation and standardization of a process”

ARDS Webcast 2014

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