Maximize Returns from Oracle Internet Expense by

Comments

Transcription

Maximize Returns from Oracle Internet Expense by
NorCal OAUG Training Day 2007
Maximize Returns from
Oracle Internet Expenses by
enabling Corporate Credit Cards
Venkat Natarajan
Sr. Applications Manager
Rambus Inc.
www.rambus.com
17th January 2007
Himani Shah
Senior Consultant
Ubex Corporation
www.ubex.com
Agenda
•
•
•
•
•
•
•
•
•
•
Introduction
Background
Solution
Benefits
Credit Card Process
Oracle Functionality
Implementation
Tips
Summary
Q&A
2
About Rambus
Rambus is one of the world's premier
technology licensing companies specializing
in the invention and design of high-speed
chip interfaces.
• Revenues
• Employees
: ~$165M (2005)
: 400 approx
Visit www.rambus.com for more information
3
Agenda
•
•
•
•
•
•
•
•
•
•
Introduction
Background
Solution
Benefits
Credit Card Process
Oracle Functionality
Implementation
Tips
Summary
Q&A
4
Business Scenario
• Oracle Internet Expenses module used only for
out of pocket expenses
•
•
•
•
Employees created expense reports online
Employees submitted receipts to AP
Expense report sent online for manager approval
AP verified receipts & reimbursed employee
• Corporate credit cards issued to Senior
executives (less than 10)
• Approval, Accounting and Reconciliation of
credit card expenses done manually
5
Challenges
• No systematic and/or scalable business processes
for existing corporate credit cards expenses
• Expense reporting and approval for credit card
expenses was manual (on paper)
• Accounting & reconciliation was manual – very time
consuming during period end
• Cumbersome process for ad-hoc purchases and
travel expenses
• Employees/admins had to bear upfront out-of-pocket
expenses for company purchases
• Misc/Urgent purchases were processed via Purchase
requisition.
• Small value expense reimbursement was a hassle
6
Agenda
•
•
•
•
•
•
•
•
•
•
Introduction
Background
Solution
Benefits
Credit Card Process
Oracle Functionality
Implementation
Tips
Summary
Q&A
7
Solution
• Implement Corporate Credit Cards in Oracle
Internet Expenses
• Upload credit card transactions data file from credit
card provider to Oracle
• Process all credit card transactions via expense
reports using Oracle standard functionality
• Issue Corporate Credit Cards to employees for
business expenses
8
Corporate Credit Solution
Sign credit card
policy
Receive corporate
credit card
Submit expense
report
Business expenses
Pay by credit card
9
Agenda
•
•
•
•
•
•
•
•
•
•
Introduction
Background
Solution
Benefits
Credit Card Process
Oracle Functionality
Implementation
Tips
Summary
Q&A
10
Benefits – Simplify Expense Reporting
• Do not bear upfront out of pocket charges for
company expenses by using credit card
• Save the hassle of collecting and submitting
paper receipts for credit card expenses
• Easily create expense report by selecting credit
card transactions
• Enter credit and cash expenses in the same
report
• Company does not need to provide cash
advances to employees for business & travel
expenses
11
Benefits – Reduce AP Overheads
• Eliminate the paperwork of receipt submission
for credit card expenses since the credit card
statement serves as a receipt
• Eliminate the process of verifying and filing
receipts
• Increase accounting accuracy (accounting flows
directly from the online expense reports)
• Enable efficient accrual of expenses as expense
transactions are loaded into the ERP system
automatically within few days
• Enable efficient reconciliation of credit card
statement
• Reduce the number of cash expense reports
12
Benefits - Tighten Internal Controls
•
•
•
•
Enforce online approval of credit card expenses
Enforce expense policy
Audit expenses online
Report and drill down on all expense transactions
(cash & credit) for easy expense analysis and
management reporting
• Capture expenses as soon as data is received
from the credit card provider, thus making the
financial statements more accurate
• Review detailed transaction information in the
expense report – e.g. flight details for airline
tickets like flight numbers, dates, starting and
ending location
13
Benefits - others
• HR
• Provide corporate credit cards as a perk for
employees
• IT/Finance
• Scalable process
14
Agenda
•
•
•
•
•
•
•
•
•
•
Introduction
Background
Solution
Benefits
Credit Card Process
Oracle Functionality
Implementation
Tips
Summary
Q&A
15
Corporate Credit Card Process
Employees use
credit card
AP reconciles credit
card statement at
month end and
settles payments*
Transactions
downloaded from
bank and uploaded
to Oracle daily
Manager approves
the expenses
* Method depends on payment options setup
16
Employees are
notified to submit
expense report
Employees create
expense report and
submit for approval
Corporate Credit Card Process
• Employees use credit cards for business expenses at various
merchants
• The merchant posts the transactions to the credit card provider
• A daily automatic interface downloads expense transactions from
the credit card provider and uploads into Internet Expenses
• Employees are notified by email to submit expense reports when
new transactions are available (via standard concurrent program)
• Employees create their expense reports by reviewing the
transactions
• The expense report goes to the employee’s manager for
approval.
• At month end, AP reconciles the credit card statement and
settles the payments with the credit card provider / employee.
Reconciliation is easy since all the credit card transactions are
loaded into the system on daily basis.
17
Expense Report Creation
18
19
20
21
22
Credit Card Setup Options
• Company Pay option – The company pays the credit card
provider for all expenses charged on the credit cards. Any personal
employee expenses are offset against the cash expenses or need
to be reimbursed by the employee to the company
• Individual Pay option – The employees are responsible for
paying the entire credit card bill. They are reimbursed by the
company for the business expenses based on the expense reports
• Both Pay option – The employees pay the credit card
provider for the personal expenses and the company pays the
credit card provider for business expenses
Tip : Please note that all credit card providers do not support all of the above
options for their corporate credit card products. Please ensure that you select a
credit card provider that supports the option that you wish to implement.
Accounting and processing are different for the above options. Please refer
Internet Expenses User Guide for details.
23
Oracle Standard functionality
• Transaction loader programs
• Standard programs available for American Express, Bank of
America Visa, US Bank Visa, Visa VCF 4, MasterCard CDF3,
Diner’s Club. Custom loader program needed for others.
• Automatic credit card creation in Oracle
• New credit cards are automatically created by matching credit
card holder info in the transaction file to the employee name in
Oracle HR.
• Default expense types based on Merchant
Category Codes
• Map MCC codes to expense types during setup
• Expense types drive expense account while auto-accounting
24
Oracle Standard functionality
• Personal transactions
• Personal transactions are accounted appropriately
• Employee has liability to pay
• Disputed transaction
• Mark transactions as disputed
• Track history of related communications
• Adjust transaction against credit provided by bank
• Standard reports and escalations for outstanding
transactions
• Run standard reports to determine status of outstanding
transactions. Concurrent programs can send escalation
notifications for un-submitted expense reports.
• Audit features
• Audit expenses by expense type, amount, date range,
employee, policy violation etc. Many options available.
25
Systematic Controls
Examples of controls to manage the usage of the
Corporate Credit Cards
• Credit limit *
• Card level credit limit
• MCC code level – e.g. Airline transactions could have a higher
credit limit than Restaurant transactions
• Merchant Category Codes *
• Restrict the MCC codes where the credit card can be used
• E.g. Jewelry & pet stores could be out of scope
• Justification required field
• Enable a mandatory justification field for certain expense types
• This helps the approver and the expense report auditor verify
adherence to company policy
* Check with credit card provider for offering details
26
Agenda
•
•
•
•
•
•
•
•
•
•
Introduction
Background
Solution
Benefits
Credit Card Process
Oracle Functionality
Implementation
Tips
Summary
Q&A
27
Setups
• Transaction load
• Setup daily transaction load with credit card provider
• Setup ftp site
• Handle file encryption
• Define Profile Option – set OIE:Enable Credit Card to Yes
• Setup Credit Card Program
• Define Card Policy
• Transaction age limit
• Setup expense type mapping
• Create a payables lookup code for MCC codes
• Create mapping rules to map MCC codes to card expense types
• Assign card expense types to expense report templates
• Testing – obtain dummy transaction files from your credit
card provider for testing
28
Standard responsibilities used
•
•
•
•
•
•
•
Payables Super User
Internet Expenses Setup and Administration
Internet Expenses
Internet Expenses Auditor
Internet Expenses Audit Manager
Internet Expenses Help Desk
Internet Expenses Reporting and Analysis
29
Useful Customizations
• Automated transaction loader program
• Standard transaction loader program requires the file name of
the transaction data file with full path as a parameter
• To avoid the manual load of files, a custom program reads the
filename and automatically launches the Oracle standard
transaction loader program
• Credit cards transactions accrual report
•
•
•
•
•
Custom report lists the journal entry for accruing all the outstanding
credit card transactions at period end
Derives the natural account based on the MCC code and the cost
center based on the employee’s department
Summarizes amounts by the GL code combination.
Report output loads in to Oracle GL via ADI
Speeds up expense accrual at month
30
Tips
• Functional
• Implement a corporate credit card policy
• Start with a pilot set of cards (up to 5) and complete
1-2 period closes
• Designate a Credit Card Administrator
• Technical
• Get the latest Internet Expenses patch sets (a lot of
new functionality has been added)
• Test the process for details since documentation may
be at a high-level
• The inactive employee workflow does not work if you
have a shared HR installation
31
Summary
Oracle Internet Expenses provides a user-friendly
interface to create Expense Reports and route
them for approval and reimbursement.
Enabling the Corporate Credit Card functionality
simplifies the Expense Reporting process further,
both for your employees and your Finance
department.
32
About Ubex
Ubex Corporation is a premier provider of
end-to-end solutions based on Oracle
Applications
Ubex is an Oracle Certified Partner
Visit www.ubex.com for more information
33
Other Ubex Events Today
• Ubex Booth
• Visit Booth # 14 today
• Enter for a chance to win a Nintendo Wii !!!
• Other Ubex Presentations
• Credit Management - An easy solution for evaluating
customer creditworthiness
(Room 212 at 11:15 AM)
• AME (Approvals Management Engine) with
iProcurement – A better solution
(Room 207 at 1:30 PM)
34
Contact Information
Venkat Natarajan
[email protected]
Himani Shah
[email protected]
35
Q&A
36

Similar documents