OpenWorld 2018 Cloud Procurement at RE/MAX Sheri Ortlieb, Director – Financial Solutions, RE/MAX, LLC Murray McCuaig, Senior Practice Director, Oracle Consulting, Oracle Mahesh Vallampati, Consulting Manager, Oracle Remax/Oracle

Agenda About Re/Max Requirements Implementation Design Concept Implementation Team Business Benefits Remax/Oracle

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REQUIREMENTS Remax/Oracle

Buyer Flexibility Remax/Oracle

Current Complexity The media buys are contracted to occur over a period of time, typically one year Most of the media suppliers bill monthly or quarterly sometimes even randomly after the ad has been run Remax/Oracle

Lack of Accounting Visibility Finance managers need visibility to the actual amount of spend for the current period projected amount for the upcoming fiscal quarters Remax/Oracle

Implementation Remax/Oracle

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IMPLEMENTATION TEAM Remax/Oracle

Procurement Flow Payables Procurement Supplier invoice Create PO with services to be provided on a variable monthly schedule Use information from PO Lines and schedules to generate accrual for non-invoiced amount Process continues until po is exhausted Match Invoice by PO#, Line, Amount and Schedule PO Information Updated on Matching (PO -> Line -> Schedule) Remax/Oracle

EXAMPLE Remax/Oracle

$ 50,000 Service Dates Amount 11/30/2018 $ 5,000 01/31/2019 $ 2,500 $ 5,000 01/31/2019 $ 2,500 02/28/2019 04/30/2019 $ 20,000 06/30/2019 Remax/Oracle

$ 50,000 PO entered with one line, with the total amount of the purchase and the first requested delivery date Remax/Oracle

Service Dates Amount 11/30/2018 $ 5,000 01/31/2019 $ 2,500 02/28/2019 04/30/2019 $ 20,000 06/30/2019 From the Schedules Tab, select the line and choose the ‘Split’ function. Remax/Oracle

Service Dates Amount 11/30/2018 $ 5,000 01/31/2019 $ 2,500 02/28/2019 04/30/2019 $ 20,000 06/30/2019 Enter the next scheduled delivery date, and the expected amount to be spent in that period. Each split can have a different amount and expense account, if necessary. Remax/Oracle

Example: PO fully scheduled Service Dates Amount 11/30/2018 $ 5,000 01/31/2019 $ 2,500 02/28/2019 04/30/2019 $ 20,000 06/30/2019 Example: PO fully scheduled Remax/Oracle

Procurement Flow Payables Procurement Supplier invoice Create PO with services to be provided on a variable monthly schedule Use information from PO Lines and schedules to generate accrual for non-invoiced amount Process continues until po is exhausted Match Invoice by PO#, Line, Amount and Schedule PO Information Updated on Matching (PO -> Line -> Schedule) Remax/Oracle

Monthly Close Process As part of the monthly close, the new Accrual Preview process is run Remax/Oracle

Accrual Preview Preview report shows accrual amounts for all open PO’s for the period, sorted by legal entity Remax/Oracle

Accrual Example Calculates the necessary accrued expense for the period using the scheduled delivery dates and order amounts thru the current period, less any invoices that have been matched to the PO’s Remax/Oracle

Accrual JE Creation After review, an accrual JE creation process is run which generates an FBDI journal entry that is ready to be imported After the entry is imported, adjustments can be made as necessary, prior to posting Remax/Oracle

Automatic Accrual Process Benefits Accruals can be generated without any matched invoices, or at any stage of the invoicing process If invoices are received but not entered, the expenses are recognized in the proper accounting period, to the appropriate legal entity This relieves pressure on AP department for invoice entry at month-end Remax/Oracle

Additional Reporting - PO Forecasting Report Provides visibility for region managers on upcoming 12 months of expenses Report can be exported into Excel and sorted or filtered by supplier Remax/Oracle

Additional Reporting - PO Forecasting Report Consolidates all regional PO’s into one view Report can be run at any time, based on a user-defined starting period number Remax/Oracle

PO Forecasting Report Users can anticipate where they may need to issue a change order based on amount spent to-date Remax/Oracle

Invoice Matching When invoices are received, the match is done on the scheduled amounts from the PO Invoice approval is done only by the requester to confirm services were received Remax/Oracle

Design/Concept Remax/Oracle

Concepts that were leveraged PO_DISTRIBUTIONS_ALL was the basis for the information for the journal We exploit this table and the information that is maintained in this table The information is updated when an invoice is matched to a PO AP_INVOICE_DISTRIBUTIONS_ALL tied to PO_DISTRIBUTIONS_ALL AMOUNT_ORDERED NUMBER Amount ordered for service lines AMOUNT_DELIVERED Amount delivered for service lines. This is updated when the invoice is matched AMOUNT_CANCELLED Amount cancelled for service lines This is updated when the amount remaining is cancelled or cancelled on the whole Remax/Oracle

Data Model Remax/Oracle

Implementation Team Remax/Oracle

Successful Day Two Rollout Procurement Cloud Account Payables Cloud Custom Reporting Innovative solution designed and POC developed by Mahesh Vallampati brainstorming with Murray and Sheri Implementation was led by Center of Excellence members in Denver RE/MAX Team: Alexis Leage, Bethany Kalenga, Connor Burke, Doug Griffin, Giancarlo Crotti, Madison Bowker, Mahesh Vallampati, Matt Lally, Molly Horowitz, Murray McCuaig, Vikki Lynch, and Zach Barger Remax/Oracle

Business Benefits Remax/Oracle

Business Benefits Productivity Compliance Optimize Costs Remax/Oracle

Successful Launch!! Remax/Oracle