Oracle Approvals Management Approvals Management Engine AME with

Oracle Approvals Management (Approvals Management Engine - AME) with i. Procurement Jan 17, 2007 Manoj Desai Dharmang Purohit

TIBCO Software Inc. § TIBCO Software Inc. is a leading business integration and process management software company that enables real-time business. § With over 2, 500 customers, TIBCO has given leading organizations around the world better awareness and agility— what TIBCO calls The Power of Now®. § TIBCO is recognized by top analysts for both market and technological leadership in service-oriented architecture (SOA) and business process management (BPM) domains. § Visit www. tibco. com for more information © 2007 UBEX Corporation and TIBCO Software Inc. . 2

Presentation Objectives § Business Case § Feature Description § AME Components § Define Rule in AME § Terminology § Solution overview § Implementation steps § Benefits § Lessons learnt § Questions © 2007 UBEX Corporation and TIBCO Software Inc. . 3

Business Case § Situation prior to AME implementation § Core purchasing approval structures within Oracle Purchasing based on: § Job § Department § Approval amount limits § Approval hierarchies maintained across 14 operating units. § Linear Employee/Supervisor approval hierarchy § Dummy job roles to facilitate budget review © 2007 UBEX Corporation and TIBCO Software Inc. . 4

Business Case § Major pain points § Maintenance issues § No possibility for creating global structure § Approval hierarchies had to be maintained across 14 operating units § Exceptions to Employee-Supervisor hierarchy were not handled easily § Approval cycle process issues § Inefficient budget review process – rejections require start from scratch § Project objectives § Determine an approval structure to be maintained on a global basis § Improve budget review cycle time © 2007 UBEX Corporation and TIBCO Software Inc. . 5

Business Case - ROI § Cost of NOT implementing AME § Manual data entry & testing to maintain 14 operating units – 8 hours per month § Data entry errors and recovery § Longer requisition approval turnaround time § Cost of implementing AME § Consulting - 70 person days § TIBCO internal – 36 person days § Return § Manual data entry reduced by 95% § 10% improvement in approval cycle time © 2007 UBEX Corporation and TIBCO Software Inc. . 6

Feature Description § What is AME? § Oracle Approvals Management (AME) is a self-service Web application that enables users to define business rules governing the process for approving transactions in Oracle Applications (where AME has been integrated). § AME is tightly integrated with Oracle Workflow © 2007 UBEX Corporation and TIBCO Software Inc. . 7

Define a rule in AME Components of Rule are: Attributes: requisition amount, department Conditions: 5001 <= requisition amount <= 25000, department = 84200 Approval: Pre-approval group + direct hierarchy If Requisition Amount between 5001 and 25000 USD Rule and Department = 84200 then require pre-approval from FA 2 and approval in direct hierarchy up to absolute job level 6 © 2007 UBEX Corporation and TIBCO Software Inc. . 8

Terminology § Pre approval group = A group comprising of finance analysts responsible for budgetary approval (selected based on amount, department) § Chain of authority = The main approval group or employee supervisor hierarchy § Post approval group = A post approval group which can approve requisitions after the initial chain of authority based on conditions (amount, department, etc. ) § Job Level = Approval Authority level associated while defining a job in Oracle HRMS © 2007 UBEX Corporation and TIBCO Software Inc. . 9

Solution Overview - Global Purchase Requisition Approval Hierarchy Rule #1 Rule #2 Enter Requisition up to $1. 5 K Enter Requisition Up to $5 K Up to $10 K Rule #3 Pre approval group Line Mgr Approval Mid Mgr Approval Sr Mgr Approval Chain of Authority Post approval group Rule #4 Rule #5 Enter Requisition Up to 25 K Up to$50 K Financial Analyst * Defined in AME Line Mgr Approval Job Lvl 3 Mid Mgr Approval Sr Mgr Approval Director Approval Dept VP * Corporate Controller Mid Mgr Approval r Job Lvl 4 a c Sr Mgr Approval Job Lvl 5 l e Director Approval Job Lvl 6 H R Dept VP * Job Lvl 7 Sr. Officer Job Lvl 8 Corporate Controller Defined in AME CFO © 2007 UBEX Corporation and TIBCO Software Inc. . O 10 M S

Implementation Steps © 2007 UBEX Corporation and TIBCO Software Inc. . 11

Benefits § AME helps you maintain your business logic associated with approval transactions globally from single window § Lets you cut down approval related workflow customizations, hence reducing the cost of ownership § Helps you leverage common expenditure policies across modules, thus consolidating your approval policy requirements § Any transaction is assured to be approved under the latest conditions, regardless of organizational changes, currency fluctuations or transaction data § Built-in testing utility to check the correctness of setup performed for both real-time and test transactions, hence reduces the need for elaborate testing cycles § Intangible benefits derived from solution design § Reduced requisition approval turnaround times, thereby increasing the efficiency of our procure-to-pay process § Increased visibility of spending traits upfront to management chain © 2007 UBEX Corporation and TIBCO Software Inc. . 12

Lessons Learnt… § A well defined purchasing expenditure matrix helps to establish a solid foundation for creating approval rules in AME § Gaps within employee-supervisor hierarchy with respect to job levels can extensively affect desired functionality § It is always a safe practice to close down all in-process requisitions before going live with AME implementation § Analyze the impact of your implementation with other applications already using AME and also with other applications using employee-supervisor hierarchy for approvals § Identify your exception handling strategy upfront in case of any errors encountered during calculation of approvers by AME § Identify your requirements for segregation of duties aspect (SOX). © 2007 UBEX Corporation and TIBCO Software Inc. . 13

Ubex Corporation § Ubex Corporation is a premier provider of end-to-end solutions based on Oracle Applications § Ubex is an Oracle Certified Partner § UBEX Booth § Visit Booth # 14 today or www. ubex. com for more information § Enter for a chance to win Nintendo Wii !!! © 2007 UBEX Corporation and TIBCO Software Inc. . 14

Q & A’s © 2007 UBEX Corporation and TIBCO Software Inc. . 15

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