Automated Month-End Close Process (AMCP) Alfredo Pantaleon Professional Services Chris Martin Regional Sales Manager January 24th, 2006

Agenda Challenges Benefits Feature Summary Solution Overview Solution Demonstration and Review Q&A

Challenges Complexity Timing SEC/SOX Numerous Modules (INV,OM,PO,AP,AR,GL) Numerous Inter-Dependencies Interface Table Processing Personnel and Coordination Timing Compressed Coordinated Critical Path Processing SEC/SOX Contemporaneous Audit Timeliness of Reporting

Typical Month end Close Frenetic Confusing Frustrating Labor Intensive Lengthy/Delayed Non-deterministic Difficult to Audit

Risks and Ramifications Financial Reporting Accuracy is Compromised Manual Processes are error prone Stuck transactions are forced/dropped No time or process for parallel audit Unclosed periods allowing back transactions Financial Reporting is Delayed

Can you Benefit? Do you have adequate time to properly review interface table rejects? Is there a lengthy delay between the close and issuing statements? Does your close process span many days? Are there a large number of manual journal entries to record transactions or make adjustments? Is there a high dependency on spreadsheets to record accounting transactions or support manual journal entries? Are you subject to compliance legislation such as SOX? Is there a history of restatements? Limited time for financial and operational analysis?

Key Advantages Quick Time-to-value Flexible and Extensible Robust Configuration vs. customization Seeded processes leverage Oracle best practices Seamless deployment into Oracle 11i E-business Suite Leverages Oracle supported extensions and APIs Flexible and Extensible Processing Steps can be added, removed, modified, and rearranged Robust Support Multiple Operating Units Supports Multiple Inventory Organizations

Solution Definition and Objective An automated month-end close process (AMCP) leveraging the GUI-based configurability of the LogicalApps Suite and supporting Oracle technology, e.g., workflow. Objective: Streamline the close process through automation Reduce the effort Reduce the time/duration Improve accuracy and consistency Improve visibility Support contemporaneous audit

Feature Summary Define notification recipients Activity notification Task Approvals Interface checking Re-submittal of interface errors Automatic period open and closing Parallel processes Define notification recipients Automatic Reporting Expandable Configurable Multi-Org Modular design

Global Workflow Started Distribution Pre Close Main Process Global Workflow Started Distribution Pre Close Inventory Pre Close Rpts Inventory Close Inventory Post Close Receivables Close OM Close AR Close Rpts Payables Close General Ledger Close Purchasing Close General Ledger Close Rpts PO Close Reports

General Ledger Close Reports Standard GL closing reports General Ledger Close Reports Trial Balance - Detail General Ledger - (180 Char)

Inventory Pre Close Reports Process runs reports necessary for beginning the close process. For companies with many organizations this process runs the report for each organization Inventory Pre Close Rpts All Inventory Value Reports Intransit Value Reports

Payables Close Validate distributions Transfer to GL Complete Accruals Automatically close AP period and open the next period Payables Close Payables Accounting Process Payables Pre-Transfer Review Payables Transfer to General Ledger Unposted Invoice Sweep- Notification Manage AP Periods Run AP Trial Balance Expense Period End Accruals Complete Receipts Accrual

Inventory Close Closes open inventory Periods for each organization Opens the next inventory Period for each organization Inventory Close Close Inventory Periods

Inventory Post Close Runs Post close reporting for inventory valuations for each organization Inventory Post Close Intransit Inventory Reports Period close value summary Inventory Value Report Subinventory Account Value

OM Close Process for adding any company specific Month End Sales reporting OM Close

Purchasing Close Process runs task for receiving and Purchasing. Accruals Purchase price Variance Invoice price Variance Closes the Purchasing period and opens next period. Purchasing Close Uninvoiced Receipts Report Purchase Price Variance Report Approve PO Period Close Manage PO Periods Check that PO Period is Closed Accrual Rebuild Reconciliation Report

Purchasing Close Reports Process is defined so that additional reports may be added here. This process will run the report once per Organization PO Close Reports

Solution Overview Configuration form to determine owners of business areas Launch close process for the GL periods form

Cont… Close process will only launch for eligible periods Process initiates an Oracle Workflow where all processes are visible

Cont.. Workflow notification begin sending to inform recipients of interface records in error, reports that have run, approval for period close or open.

Q & A Presentation Requests: webinars@logicalapps.com 949-453-9101 Solution information: Daryl Geryol – Director of Professional Services dgeryol@logicalapps.com