1© Hitachi Data Systems Corporation All Rights Reserved.1 GLOBAL PTP- SO MANY COUNTRIES, SO LITTLE TIME… Carl Harter Sr. Director – Procurement and Travel Priya Tivare Sr. Manager – Procurement Programs & Reporting

2 AGENDA  Overview  Planning  Implementation  Training

3 QUICK OVERVIEW  Current Setup ‒ How many OUs? 23 ‒ Multi language or English? English ‒ Multi Currency? Yes ‒ Actual version? ‒ Modules installed/used – ‒ US/CA – PO, AP, iProc, and iExpense ‒ EMEA - Core/Std. PR/PO, AP, iExpense ‒ APAC – Core/Std. AP, iExpense ‒ Setup for all employees (6000), but only about 400 concurrent users.

4 PLANNING  In FY 12 (Apr-Mar) HDS to add the following: ‒ US/CA – ‒ Automatic routing and approval via HR hierarchy ‒ iExpense integration for Pcard and Travel Card. ‒ 3 Way Match for Goods and Services ‒ EMEA – ‒ iProc for 17 entities ‒ APAC – ‒ PO and iProc for 10 entities

5 IMPLEMENTATION  Focused on US/CA first – represents over 80% of global activity and spend  PTP team – responsible for design and testing of design - consists of Procurement Program Manager (Priya), Systems Specialist (reports to Priya), IT developer, Business Analyst (AP).  Business users get involved during UAT and are asked to complete specific tasks within a given timeframe.

6 TRAINING  Focused primarily on Change Management - “Why are we doing what we are doing?”  Hands On Training…

7© Hitachi Data Systems Corporation All Rights Reserved.7 HDS GLOBAL PROCUREMENT PROCESS TRAINING NOTE How you can comply with HDS’s Global Procurement Policy

8 OBJECTIVE To communicate HDS procurement culture and to ensure that you fully understand the logic & impact of:  Submitting Purchase Requisitions (PRs)  Who creates Purchase Orders (POs) and why  The purpose of Receiving your goods or services

9 OVERVIEW Why are you here?  To understand the key elements of HDS’ new procurement policy  To learn how to create requisitions and receipts using Oracle iProcurement  To recognize how your actions using Oracle iProcurement affect the whole purchasing process at HDS

10 OVERVIEW EMEA Statistics Invoices processed:2850 per month Expenses processed:1400 per month Number of suppliers:over 6000!

11 OVERVIEW Terminology VENDOR = SUPPLIER PROCUREMENT = PURCHASING PO = PURCHASE ORDER PR = PURCHASE REQUISITION iProc = Oracle iProcurement Oracle PO = Oracle Purchasing P2P / PTP = Purchase to Pay

12 OVERVIEW Purchasing is the formal process of buying goods or services

13 PROCUREMENT Procurement is subject to HDS corporate policies Procurement is planned and controlled

14 NEW GLOBAL PROCUREMENT POLICY Policy Highlights  All spend must be pre-approved before any commitment is made to the supplier  All suppliers must quote a “PO” number on their invoice unless they are an approved exception  HDS standard payment terms are 45 days or longer  We pay by Electronic Funds Transfer (EFT)  All HDS required documentation to be completed: ‒ Contracts, Statements of Work (SOW), HR Requisition etc ‒ Standard HDS Contracts are found at:

15 WHAT ARE THE “EXCEPTIONS”? An “exception” is spend that does not require a Purchase Requisition / Order to be raised All “exceptions” must be reviewed and approved as such by your finance leadership Utilities Legal HR InsuranceRents

16 NEW SUPPLIER SET UP New Supplier FormAuthorization Supplier Set Up (SSC) Purchase Requisition / Order Process FULLY COMPLETED PRIOR to ORDERING

17 NEW SUPPLIER SET UP Considerations  Will this supplier be used on an on-going basis?  Do we already have a preferred supplier in place?  Make sure the supplier has been set up or...

18 PURCHASE REQUISITION / PURCHASE ORDER Why do we use an order?  Best business practice  Creates a legally binding contract between HDS & the Supplier Invoices received that do not reference a PO number will be returned to the supplier

19 PURCHASE REQUISITION / ORDER Supplier InquiryOracle iProc RequisitionRequisition Approval Oracle PO sent to Supplier A PR is only a REQUEST - How you create your PR determines how HDS will be invoiced

20 PURCHASE REQUISITION /ORDER GOODS Use GOODS for tangible items When you need a specific number of items Quantity 100 items Unit Price $10 per item $1000 total

21 PURCHASE REQUISITION /ORDER SERVICES Use SERVICES for undefined purchases Where the quantity is the total cost or based on an estimate Quantity is total value, 1000 Unit Price defaults to $1 $1000 total

22 SPEND CATEGORIES Category Account code Reporting & Accounting HDS is striving to standardize how we account for items we buy on a global basis This will deliver significant savings as it allows us to generate accurate reports iProc assumes you might not be an accountant

23 APPROVALS What the policy says... $ Value of maximum value Approval required from requestor’s management Approval required from finance Notification to Corp Corporate Controller Approval required for all Capital Purchases $100,000 (€75,000) Manager Business Unit / Country Controller (Ben Post, Tung Wang Sung & Lode Roggen) NO Fixed Asset Manager or Authorized Delegate $250,000 (€185,000) Manager & Director $500,000 (€370,000) Manager, Director & Country Manager/VP Business Unit Controller & CFO YES Over $500,000 (>€370,000) Manager, Director, VP, Country Manager/VP & C-level Exec Your country’s finance leadership is able to interpret the above to suit local needs whilst in compliance with the above requirements e.g., Your country controller may want to reveiw/approve all PRs above $2,500

24 APPROVALS Indirect Cost center Approval hierarchy maintained by Corp HQ Direct Purchase Type Approval hierarchy hard- coded OLD WAY Oracle HR Requestor & Requestor’s Management Approve Approval automatically routes in compliance with policy NEW WAY

25 RECEIVING PO=20 Receive 15 (physical) Invoice = 20 Receive 20 in Oracle Overpay 5 NO RECEIPT RECORDED IN ORACLE One month later we receive the invoice in SSC AP for input & payment SSC AP contacts requestor and asks them to receive into Oracle

26 RECEIVING – SHORT DELIVERY PO=20 Receive 15 (physical) Invoice = 20 Credit 5 One month later we receive the invoice in SSC AP for input & payment RECEIPT RECORDED IN ORACLE AT POINT OF PHYSICAL RECEIPT The supplier should be contacted by the requestor and advised that they have over charged A credit should be requested – until this is received, the invoice will not be paid [it will be ‘held’ in the system] The credit note should reference the PO number AND invoice which it is to be credited against

27 RECEIVING PO receiving is a control to ensure what has been physically received matches what we are subsequently charged for The physical receipt of goods/services ‘triggers’ a liability An invoice will be ‘held’ from payment in the system until PO receipted and a ‘match’ occurs (3 Way match).

28 INVOICE PROCESSING Invoices SSC NO YES PO NUMBER EXCEPTION PO MATCH MANUAL MATCH YES NO RETURN TO SUPPLIER WITH A REJECTION LETTER

29 ORACLE TIPS: DESCRIPTION Be very clear when entering a description to avoid errors and so as approvers know what they are approving

30 ORACLE TIPS: NEED BY DATE Need-By Date is very important as this enables us to close the PO

31 YOUR TURN We are now going to demo some PRs and receipts and then it’s your turn!

32 YOUR TURN For the purposes of training use “NL EDC Requisitions (Full Access)” Normally for Belgium you would Use “BE” and for Amsterdam “NLBV”

33 EXERCISE 1 – CREATE A PR Create a new requisition 400 x “Sumo Wrestler” Stress Balls Price is $0.36 each Part number x1234x Requestor is Ralph Randle Need by date is 15 th August 2013 Supplier is “Promo.nl”

34 EXERCISE 2 – CREATE A PR Create a new requisition Logistics consultant for project windmill Price is €11,000 Requestor is Paul Dalderop Change the cost centre to Need by date is 15 th August 2012 Supplier is “A&O Systems + Services Netherlands BV. ” based in Utrecht

35 EXERCISE 3 – RECEIPT A PO Receipt a PO Ben/Zak will give you POs to receipt against Receipt 15 items only Leave a note that you are receipting on behalf of Zakia Now tell Ben and Zak how many items are left still to receive

36 EXERCISE 4 – RECEIPT A PO Receipt a PO Ben/Zak will give you POs to receipt against Receipt € only Leave a note that you are receipting on behalf of Ben Then add another receipt to the same PO for € Now tell Ben and Zak what the current “open value” of the PO is

37 NOW DO THE QUIZ & SURVEY PLEASE!

38 QUESTIONS AND DISCUSSION THANK YOU