The New World: Glimpse to Shared Tower -Intercompany Process June 14, 2018

Intercompany Activities MatchingReconciliationSettlement/Packets High Level Process Flow

June 27, 2018Conduent internal use only3  Matching  Reconciliation  Settlement/Packet  Intercompany Activities High Level Process Flow

June 27, 2018Conduent internal use only4  Matching  Reconciliation  Settlement/Packet  Intercompany Activities Invoicing Sending and receiving of all intercompany invoices thru IPS Preparation of JEs for invoices to and invoices from trading partners; corporate IC billings and cross-charges Review, approval and posting of journal entries High Level Process Flow

June 27, 2018Conduent internal use only5  Matching  Reconciliation  Settlement/Packet  Intercompany Activities Review, analysis and resolution of any existing variance High Level Process Flow

June 27, 2018Conduent internal use only6  Matching  Reconciliation  Settlement/Packet  Intercompany Activities Preparation of Manual Intercompany reconciliations High Level Process Flow

June 27, 2018Conduent internal use only7  Matching  Reconciliation  Settlement/Packet  Intercompany Activities Preparation of E-netting Preparation of settlement packets High Level Process Flow

June 27, 2018Conduent internal use only8 System Tools

Mid-level Process Flow Retrieve and verify ITD request details Access IPS Populate IPS required information Attach supporting documents Submit ITD to Trading Partner ITD Process - Originating ITD Process - Receiving Retrieve notification from IPS Access IPS Review and validate ITD Populate IPS required information Accept ITD

JE Process, Review and Approval Prepare JE and attached supporting documents Upload JE in BlacklineReview JE Post and complete JE in Blackline Mid-level Process Flow

FCTA (Foreign Currency Translation Adjustment) Prepare FCTA computation Prepare JEReview JE Post and complete JE in Blackline FCTA adjustment refers to the process of recognizing both realized and unrealized gain or loss based on the monthly IC transaction between two entities with different local currencies. JE Process, Review and Approval - FCTA

Elimination PS/CML/GOS Journal Entry processingEntries are prepared by Intercompany Team *Go-live in August 2017 Pull Balance in Essbase Identify GL account code Process Elimination Entry IC Elimination Entry Process Elimination refers to the process of removing IC Revenue transactions between companies/business units offsetting it with Expense account in preparation for Corporate Financial Reporting requirements.

Current State Comparison Intercompany Activities Public Sector / Commercial / GOS SAP / European Entities Invoicing (ITD preparation) All IC invoices are prepared thru IPSAll IC invoices are sent via before transition to IC team Enforcement of the usage of IPS for all IC invoices after it was transitioned to the Manila IC team Journal Entry Processing End to End process Reviewed/approved by Manila Mangers (99%); Use of Blackline system End to End process Reviewed/approved by Manila Mangers (95%); JE’s are done directly in SAP system BS Reconciliation Manually prepared generated from the Database tool Reviewed/approved by Manila Managers Manually prepared generated from the Database tool Reviewed/approved by Manila Managers Settlement Generated using the Database tool Reviewed/approved by Manila Managers Manually prepared Approved by Local BU Controllers Matching Review, analysis and resolution of any existing variance during Month-end close

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