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Best Practices in Managing Spend
PeopleSoft Enterprise Financial Management Applications
April 5, 2006 @ 10:30 am
The presentations and other material provided to you at this event may include statements about Oracle's product development plans. Many factors can materially
affect Oracle's Product development plans and the nature and timing of future product releases. Accordingly, this information is provided to you solely for
information only, 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 remains at the sole
discretion of Oracle. This information may not be incorporated into any contractual agreement with Oracle or its subsidiaries or affiliates. Oracle specifically disclaims
any liability with respect to this information.
Agenda
Spend Management Issues Best Practices How PeopleSoft Enterprise Delivers Q&A
Spend Management Issues
Maverick SpendMaverick Spend
Underutilized AssetsUnderutilized Assets
Excessive ComplexityExcessive Complexity
Ineffective Cost MgmtIneffective Cost Mgmt
Best Practices in Managing Spend
Visibility into transactions and proactive monitoring Monitoring and analysis based on policies
Automated processing with built-in internal controls and workflow Expense Payables
Self-Service Management and Issue Resolution Tools Employees, Suppliers
Benefits Realized with Best Practices
Enforcement of spend against policies on an ongoing basis
Less time on non-value add activities More transactions per FTE at a lower
cost Fewer errors Improved relationship with suppliers
Delivered Best Practices
Expenses Payables eSettlements
Best practice features are already available in many of the solutions
you own today.
Travel and Expense At-a-Glance
Manage Travel and ExpenseManage Travel and Expense
• Supplier Negotiations• Cost Visibility, Controls & Audit
TravelTravel CreateCreate ApproveApprove PayPayAuditAudit
Credit Card Credit Card ProvidersProviders
EmployeesEmployees
•Enforce policies, procedures
•Preferred suppliers
•Ensure compliance
•Heavy reliance on automation
•Access to timely and comprehensive travel data
•Maverick spenders
•Top Spenders
•Trend (Corporation, Industry, Sector)
•Centralize travel management and supplier negotiations
Enforcing Enforcing Compliance with Compliance with Company PolicyCompany Policy
Submitting Expenses
Manage taxable expenses
Configurable accounting by expense
Automated deductions
Preferred vendor tracking
Enterprise Expenses
Expenses Summary Approvals
Visibility into Visibility into Ongoing Ongoing ActivitiesActivities
Leverage delivered analytics to gain business insight
Visual alerts provided on summary approvals to easily identify out-of-compliance transactions
Expenses Analytics
Approvers may be configured for different levels of authorization to modify transactions by transaction type.
Travel and Expense ProcessingThe Paper Premium
$0
$5,000
$10,000
$15,000
$20,000
1 Year 2 Year 3 YearManual cost @ 48 / Expense report*
Electronic cost @ 8 / Expense report
• $1 Billion+ companies with
132,000 expense rpts / year
• Wastes $15,840 Millionover 3 years
• Electronic transactions cost 83% less
Other Benefits of Automating Travel and Expense
• Credit card Incentive strategies
• Supplier negotiation
• Audit control* Sources: Aberdeen Group, Best Practices in Category Spend Management: Travel
Enable automated integration to Projects
Enhance corporate card payment reconciliation
Rollover prior year budget allocations for travel
Pre-configured workflow for approvals & audits
Configurable Summary Approvals
Expenses 8.9 Enhancements
Benefits of Best Practices
• Use of pre-trip travel authorization
– Enforce compliance to company policy.
• Enable My Wallet expense entry
– Spend more time on strategic tasks.
• Automate Expenses policy and compliance
– Visibility into spend using analytics.
• Reduce costs through improved negotiations with travel suppliers.
Procure-to-Pay At-a-Glance
SourceSource PurchasePurchase SettleSettle
• Supplier Selections
• Negotiations
• Requisitions
• Approvals
• Orders
• Receipts
• Invoices
• Payments
Manage Suppliers & ContractsManage Suppliers & Contracts
• Supplier Performance • Expirations & Renewals
Best Practice – Streamline Payables
Prevent non-PO invoices Enable duplicate vendor setup checking Apply 2/3 way matching Eliminate paper invoice (use ERS, web-
invoicing, XML/EDI) Enable Supplier self-service Take advantage of payment discounts
Best Practice – Enable Duplicate Invoice/Vendor Checking
Invoice Controls
Vendor Controls
Matching Lines
Purchase Order Invoice Receipts
• Streamlined matching process
•Configurable Match Rules attached to
vendors
• Usage of Document Association Criteria
• Header Level Matching
• Expedite Match Exception Handling
• New Matching Workbench
• Debit Memos – Auto-Adjustment
• Supplier Metrics
• Use of Summary Invoice
Best Practice – Automate 2/3 Matching
Matching Headers
Purchase Order Invoice Receipts
Match Rule Control Attached to the Vendor
•Continue if True•Continue if False•Always Continue**NEW
•Match•Exception•Debit Memo
Payables ProcessingThe Paper Premium
Manual cost @ 8.50 / invoice
Electronic cost @ 3.44 / invoice 0
$1,000,000
$500,000
$1,500,000
$2,500,000
$2,000,000
1 Year 2 Years 3 Years
CumulativeCost Difference
Sources: Gartner Inc., Invoicing and Payments: The Payer Value Proposition and Oracle Corp.
• $2.0 Billioncompany with100,000 invoices / year
• Wastes $1.5 Millionover 3 years
• Electronic transactions cost 60% less
Best Practice – Enable Supplier Self-Service
eSettlements fully integrates with your PeopleSoft Payables :
Requires activation, not implementation Payables setup and data is automatically
pulled New roles / workflow / security are available Buyer and Supplier Self-Service facilitates
enabling of new users Web-invoicing allows your supplier to key-in
invoices effortlessly
eSettlements Business ProcesseSettlements Business Process
B2B Collaborative Framework HTML
Best Practice - Web-based Invoicing
Step 1 – Supplier logs in theSupplier Self-Service
eSettlements
Supplier
Step 2 – Supplier selects information in restricted list
of values, copy from his PO lines
(or his receipts)
Step 3 – Once the web-invoice
is completed, the suppliersubmits it to Buyer review
Step 4 – Buyer reviews the invoice and authorize to
be registered
Step 5 – The supplier can Print a copy of the invoice
For his own recordsOr request an XML file for
ERP integration
Step 6 – The invoice followsthe buyer approval process
For payment
Web-based Invoicing Benefits
Easy to use (no knowledge of EDI/XML)
Eliminate Paper Allows vendor more control over
accuracy of data Eliminates re-key entry errors Eliminates lost and slow mail No software to buy for the vendor Route the invoice to the appropriate
approver
Speed
Ease of use
Quality
No cost
• Streamlined Straight-though-Processing Summary Invoice Entry Re-designed Quick Invoice Entry Enhanced Voucher with Balancing Voucher Excel Upload
• Enhanced Controls and Compliance Flexible, Configurable Match Rules Header Level Matching and Tolerances Matching Workbench - Match Actions and Drill-
down Debit Memos –Auto-Adjustment Document Association (formerly Receipt Aware) Matching Workflow and Notifications
Payables 8.9 Enhancements
• Improved Performance and Usability Improved Payables Inquiries with Configurable
Search Initiate Real-Time Processing Across Payables Standardized Archiving Tool for Financials Compliance - JFMIP VAT Improvements
• Payables Integration Real Estate Management Financial Gateway (through Cash Management) Maintenance Management Claims Management (through Purchasing) eSettlements
Payables 8.9 Enhancements
Benefits of Best Practices
• Automate requisition/PO process
• Use automatic matching engine with business rules
– Drive down costs associated with paper processing
and manual activities.
• Enable supplier management tools- Utilize early payment discounts and improve working capital management.
• Enable supplier self-service- Improve supplier relationships and reduce supplier inquiries.
AQ&
Payables/eSettlement: [email protected]
Travel & Expenses: [email protected] [email protected]
Contacts