The following is intended to outline our general product direction The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decision. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.

Frederic Portal Product Strategy Manager PeopleSoft Payables 9.0 & Looking Ahead to 9.1 Ramakrishnan Balaji Product Strategy Manager Frederic Portal Product Strategy Manager “This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”

<Insert Picture Here> Agenda <Insert Picture Here> Release 9 Features for AP Financial Sanction Validation Support for Partial 224 requirements for FSIO Voucher/VAT Enhancements Mass Cancellation/ ACH pre-note Withholding Enhancements Digital Signature OBIEE 9.1 Feature Source Additional Resources

Sustainable Compliance Patriot Act – What Is It? Terms OFAC – Office of Foreign Asset Control SDN – Specially Designated National Financial Sanctions Some terms you should know as they will be mentioned in this presentation as well as in the delivered product and product documentation: OFAC – The Office of Foreign Asset Control – This US governing body maintains the list of specially designated nationals, who are suspected of being hostile to the United States. It is from their website where we would download the SDN list for use in validating customers and vendors when they are used on business documents. SDN – Specially Designated Nationals – as mentioned above, persons who are deemed a threat to the United States. Financial Sanctions – are actions taken against denied parties where a business would cease taking orders, shipping products, and collecting and distributing payments to persons who appear on the SDN list. “This presentation is for informational purposes only and may not be incorporated into a contract or agreement.”

Sustainable Compliance Patriot Act Compliance Benefits Reduces exposure for business transactions with Denied Parties Avoid costly fines and possible prosecution Of course, as mentioned previously, this is an important compliance tool to prevent your organization from doing business with persons, countries or using vessels to transport your goods that may be hostile to the United States. It can also hopefully assist you in avoiding the costly fines and possible prosecution associated with violating the Patriot Act. Click to advance to the next slide.

Financial Sanction Validation Feature highlights Interface to Sanction listing and inquiry Installation options to enable Financial Sanctions validation (bank or installation level) Push button to call validation when a single vendor is entered (vendor set control) Validate when voucher is saved and in pay cycle Run validation against vendor database ad hoc

Financial Sanction Validation Patriot Act Compliance Multiple Lists are Supported including SDN & Blocked Persons OFAC Sanctioned Countries, including Major Cities & Ports* Department of State Trade Control (DTC) Debarred Parties U.S. Bureau of Industry & Security (formerly BXA) - Denied Entities List Denied Persons List FBI Most Wanted Terrorists & Seeking Information FBI Top Ten Most Wanted INTERPOL Most Wanted List Bank of England Sanctions List United Nations Consolidated Sanctions List World Bank Ineligible Firms European Union Terrorism List Management Screens to Review Downloaded Data “Matches” Flagged For Review Lists are downloaded from multiple sources and can be any of the lists listed here. We have provided screens to review the contents of the lists that were downloaded on inquiry screens. *********************************************************

Financial Sanction Validation Setup and Process PROCESSES Installation Options Vendor The key setup steps are: Set your Installation Options. It is here, under the “Overall” options where you will set up your Financial Sanctions search criteria. At the Order Management Business Unit Level, you would indicate whether the business unit does financial sanctions screening, and if it does, you would enter your Hold and Reason codes, that you’ve already previously established to be used when the system finds a suspect match on the denied parties lists. If desired, you can optionally create Financial Sanctions Message Codes with a text description that tells users why a particular customer or document is on Financial Sanctions Hold. At the customer level, you would indicate whether or not your customer should be screened. Keep in mind, we are screening against a Customer Name as well as address, and while a customer may have an address that passes muster initially, they may give you an override ship to address on a business document that is screened and found to be suspicious. Setting a screening flag at the customer level, ensures that document override addresses don’t slip through without being checked. Your final step is to download the denied parties list from the OFAC website into PeopleSoft tables. These are the tables that customer and vendor names and addresses will be screened against. It is strongly suggested that this download occur on a fairly regular basis, as this list is maintained by OFAC on a daily basis, and they do not push out notifications when they have updated their lists. The process is then executed as follows: When a customer is added or maintained, the information is checked against the denied parties list. This includes customer information that may be imported from an external system. If the customer passes the check, no action is taken. If the customer doesn’t pass the check, the customer is flagged as a suspected match and their compliance status is displayed. Appropriate actions would include clearing the customer by making a call to the OFAC compliance hotline and resolving the situation with the compliance agent. You would then manually either release the customer if they pass, or set the customer’s status to “inactive” if they do not. For business documents such as the Sales Order, RMA, Quote, etc., the customer flag is checked to ensure that screening should be done for this customer. Anytime an order/rma/quote address is changed or added, the system goes through the check against the denied parties list and checks for matches. If there is a match, the business document is placed on hold and the manual step of calling the OFAC hotline and speaking with a compliance agent is performed. Once the match is cleared, the document can proceed with processing. If the customer on the business document is not cleared, the document should be cancelled immediately with the appropriate reason code furnished for the cancellation. Click to advance to the next slide Bank Payment Automated process

Financial Sanction Validation Process PROCESSES In release 9, you can validate your transaction against a list of counterparties with whom you would rather not be dealing with. OFAC’s SDN support EU e-CTFSL support Custom list support All entities operating within U.S., all U.S. incorporated entities and their foreign branches are required to comply with the Office of Foreign Assets Control regulations. In particular, all dealings are generally prohibited with entities or individuals that represent countries against which the U.S. are enforcing economic sanctions or that are linked to terrorist or criminal activities. The OFAC publishes the list of such countries, entities and individuals (know as the Specially Designated Nationals (SDN) list) on their website. For customers and vendors who are based in EEC, a similar law apply, and requires that customers and vendor be validated against electronic Consolidated Targeted Financial Sanctions List (e-CTFSL) maintained in accordance with the European Union’s Common Foreign and Security Policy. To help you comply with the financial sanction enforcement, Enterprise Cash Management 9 supports both OFAC’s and EU’s lists and provides a venue for a custom list creation. The updates for both lists can be automatically downloaded from the respective web-sites. Let’s see what append in the solution (click to see the animation) Matching Insure Compliance Supplier Creation Invoice Creation Invoice Approval Payment

Registering Seller (same as adding a vendor) Validate the name, address and remit vendor, If a potential hit identified: a warning message Supplier’s status automatically set to “Review” Automatically update status to today’s date Positive identification or clearing against a sanctions listing follows the same process as an AP vendor, it is set to block or cleared manually

Patriot Act Compliance Setup Provide Mgmt Screens to Review Data OFAC SDN Review Pages Personalize Search Criteria Displays Details of What Was Loaded into PS Provide Search Screening Capabilities OFAC SDN Search API Application Class – Both Online and Batch Versions Validates Names and Addresses Returns “Matches” Flagged For Review Download New Lists on Regular Basis No Regularly Scheduled Updates No Notification When New List if Published After the various denied parties lists from the previous slide have been downloaded into the PS tables, users can view the contents of the lists in inquiry pages, and actually customize the search criteria that will be used to find matches on the lists. For instance, if you are leveraging the Verity search engine, you can set a tolerance level in the Installation options that returns hits based on a minimum “score” that the system calculates based on what matched..name, address, vessel, etc. The Screening process provided in 9.0, is an OFAC SDN Search API in Enterprise that consists of a new Application Class. This Application Class is leveraged for all the Modules in Financials and Supply Chain to directly access the methods within this class in order to validate the Name and Address of the Specially Designated Nationals from the List of all the entities provided by the OFAC or any other denied parties lists you have downloaded. We strongly suggest that you download new lists on a regular basis since the Office of Foreign Asset Control doesn’t notify you when they prepare and publish and updated list. There is not a regularly scheduled update schedule, so to be on the safe side and to make sure you are working with the most up-to-date information, you should schedule the download on an regular basis at whatever timeframe works for your organization. Click to advance to next slide.

Financial Sanctions set-up is accessed from this hyperlink Financial Sanction Validation Installation Options Financial Sanctions set-up is accessed from this hyperlink

Financial Sanction Validation Installation

Financial Sanction Validation Bank Information

Financial Sanction Validation Payment Selection Criteria

Financial Sanction Validation Vendor

Financial Sanction Validation Vendor

Financial Sanction Validation Voucher Processing

Financial Sanctions Validation

Financial Sanctions Under related pages you will find: Import Financial Sanctions List Financial Sanctions Inquiry

Validation Log

Voucher Mass Maintenance

Pay Cycle Manager

Load Financial Sanctions Data Navigate to Banking  Financial Sanctions  Import Financial Sanction List Make sure the File Path is accessible by the app server that is running this application. Run the IMPORT_FILES Application Engine to load the SDN data.

Load Financial Sanctions Data

Inquire Financial Sanctions Data Configurable Search interface to inquire the SDN data Ability to save Search Criteria for later use. SDN Type is a mandatory field to inquire.

Inquiry

SDN Search results

Deliver Best-in-Class Business Processes Partial 224 Incremental Requirements Providing a mechanism to identify AP cash reclassification transactions for Partial 224 reporting Added a voucher reference field on the Voucher – Payment page which is used to specify the relationship between old voucher (cancelled payment) and the new one Modified payment posting to populate a new Cash reclassification record with cash reclassification transactions New component that will allow maintenance of the new Cash reclassification record

Voucher and VAT Enhancements Feature highlights: Changes to Comments hyperlink Session Default available on Regular Voucher Page Copy down logic on distribution line Related document page on voucher page Sales/Use Tax summary page Additional links on Voucher/Payment Status Inquiry

Voucher and Vat Enhancements Voucher Comments Note: If comments exceed 254 the system issues a warning message

Voucher and Vat Enhancements Copy Option

Voucher and VAT Enhancements Session Defaults

Voucher and VAT Enhancements Session Defaults

Voucher and VAT Enhancements Sales/Use Tax Summary

Voucher and VAT Enhancements Sales/Use Tax Summary

Voucher and VAT Enhancements Related Documents

Voucher and VAT Enhancements Document Status Inquiry

Voucher and VAT Enhancements Document Status Inquiry

Voucher and VAT Enhancements Document Status Inquiry

Voucher and VAT Enhancements

Mass Cancellation/ACH Pre-note Feature highlights Ability to cancel/escheat/undo cancel multiple payments Similar look and feel as Voucher Mass Maintenance Specify ACH or EFT at the vendor location as the payment output Sent through FIN2025 or Financial Gateway Same processing steps as EFT pre-note ACH pre-notes can be sent to pay cycle from Expense Pre-notes will be processed for the following layouts (PPD, CCD+ and CTX ) Business Value: Ability to cancel, undo cancel, escheat, and undo escheat multiple payments System provides additional search criteria Similar look and feel as Voucher mass maintenance Feature description: Cancel, un-cancel, escheat and un-escheat a selected population of payments based on the following criteria:  Bank setid Bank Code Bank Account Payment Method Settle by Optional additional search values Optional values - one required* Payment Reference (multiple values and multiple ranges allowed) Amount Branch Currency Employee Number Pay cycle Pay cycle Sequence Number Payment date Payment Handling code Remit vendor set id Remit vendor id Settlement type Source Vendor Name

Mass Cancellation/ACH Pre-note

Mass Cancellation/ACH Pre-note

Mass Cancellation/ACH Pre-note

Mass Cancellation/ACH Pre-note “Restore PO encumbrance” The check box will be set on by default, if the cancel Action is “Close Liability”. The PO encumbrance will be restored and the voucher liability will be liquidated. If the check box is set off, the voucher liability will be liquidated only.

Mass Cancellation/ACH Pre-note “Allow Withholding if Exists” checked on by default . user can cancel a payment for a voucher with withholding, while the payment to the withholding agency is not cancelled.

Mass Cancellation/ACH Pre-note

Mass Cancellation/ACH Pre-note

Mass Cancellation/ACH Pre-note Review Mass Cancel

Mass Cancellation/ACH Pre-note Vendor Location

Mass Cancellation/ACH Pre-note Voucher

Mass Cancellation/ACH Pre-note Payment Selection Criteria ACH pre-note added

Withholding Enhancements Feature highlights: Provide a new run control page (job) Provide a grid on Withhold Entity for handling multiple vendors in different Set ids Remove chart fields tab from the withhold entity Modify Procurement control, include chart field for withholding entity, type and jurisdiction Modify IRS tax output file name to include process instance, Withholding Control ID Value: Streamlined withholding process

Withholding Enhancements Run Control

Withholding Enhancements Run Control

Withholding Enhancements Run Control

Withholding Enhancements Withholding Entity

Withholding Enhancements Procurement Control

Withholding Enhancements Procurement Control

Digital Signature Ability to process digitally signed invoices. Provides an option for the vendor to digitally sign an invoice. Upon receipt of the invoice, the customer can validate the signature. Digital signatures ensure authenticity, data integrity, confidentiality, provide an audit trail and support non-repudiation.

Agenda Release 9 Feature for AP Financial Sanction Validation Support for Partial 224 requirements for FSIO Voucher/VAT Enhancements Mass Cancellation/ ACH pre-note Withholding Enhancements OBIEE 9.1 Feature Source Additional Resources

PeopleSoft EPM 9 New Certification with Oracle BI Enterprise Edition Greater Financial Insight PeopleSoft EPM 9 New Certification with Oracle BI Enterprise Edition Security Bridge and Logical Model (EUL) for Financials Warehouse will provide rich reporting for Advanced Cost Accounting, ESA, GL & Profitability, Accounts Payable, Real Estate, Accounts Receivable

Agenda Release 9 Feature for AP Financial Sanction Validation Support for Partial 224 requirements for FSIO Voucher/VAT Enhancements Mass Cancellation/ ACH pre-note Withholding Enhancements OBIEE 9.1 Feature Source Additional Resources

Customer focused strategy 9.1 Feature Source Customer focused strategy Feed back form AP User group Customers Sales / Presales GSC (ice) Analyst Market Trend, Competitors 9.1

Continued Product Releases For Financial Management Applications Dashboards for finance users, operational insight Reduce time needed for period-end reconciliation Focus on procure-to-pay, streamline payments integration Streamline travel planning process Superior Ownership Experience – usability, enhanced error search and handling, performance improvements New features to support Public Services best practices Streamline front-office integration for Financial Services customers PeopleSoft Release 9.1 Ongoing adoption of Fusion technology components Integration to other Oracle products New enhancements including ongoing legal and regulatory updates Consideration for back-porting selective capabilities to prior releases which have a supported migration path to Fusion Solicit Feedback and Finalize PeopleSoft Release 9.1 Plan Updates of Integrations, Dashboards, and Web Services PeopleSoft Release 9.1 2006 2007 2008

Additional Information on 9.0 Statement of Direction, Release Value Proposition, Pre-Release and Release Notes on Customer Connection TOI Transfers of Information - Oracle University Advisor Calls – Oracle.com Datasheets – Oracle.com

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