GRIR RECONCILIATION in a GLOBAL BUSINESS ENVIRONMENT Session code 4202

AGENDA Facts Company Global Business Service Centers Configuration Summary / Issues - GRIR Accounting entries Maintenance Reports Roles Work Process Work Day Schedule Summary

AGENDA – Cont’d - GRIR Learning's Reduction Development - Questions

FACTS PROCTER & GAMBLE

FACTS – PROCTER & GAMBLE - Net Sales FY2002 - $40 billion - Over 300 brands - In over 160 countries - 100,000+ people (& shrinking) in more than 80 countries

FACTS – PROCTER & GAMBLE Billion $ Brands

FACTS – PROCTER & GAMBLE Made up of Global Business Units Fabric and Home Care (Tide & Swiffer) Baby Care (Pampers, Luvs) Feminine Care (Always, Tampax) Beauty Care (Pantene, Clairol, Covergirl) Health Care (Crest, Vicks, Pharmaceuticals) Snacks & Beverage (Folgers, Pringles)

GLOBAL BUSINESS SERVICE FACTS GLOBAL BUSINESS SERVICE CENTERS

FACTS – GLOBAL BUS. SERV CTRS - Located Manila, Philippines Newcastle, United Kingdom San Jose, Costa Rica - Employees 8,500 - Service for 64 sites in 35 countries and growing

FACTS – GLOBAL BUS. SERV CTRS In the service centers Employee Services (Payroll, HR) Business Intelligence Services (Intranet) Work Place Services (PC support) Purchases IT Business Services (Systems) Accounting

FACTS – GLOBAL BUS. SERV CTRS Accounts Payable perspective - 230,000 Suppliers - 4 million invoices per year - Over 30 production systems - Tactical consolidation to the centers and conversion from legacy to SAP system

FACTS – GLOBAL BUS. SERV CTRS GOALS - Customer based service business - World Class - Deliver significant savings - Leaders for Company’s E business strategy

FACTS CONFIGURATION

FACTS - CONFIGURATION - SAP 4.5B - SAP BBP - MM - Purchase orders & Scheduling Agreements - Using all GRIR controls on purchasing documents – IR only, GRIR, etc.

FACTS – CONFIG. INV. POSTING - MM & FI invoice postings - MM – Logistics Invoice Verification - Invoices routed to centers via - Imaging & Workflow

FACTS SUMMARY / ISSUES

FACTS – SUMMARY / ISSUES - People reduced from sites (plants, etc.) and tasks moved to Global Business Centers - Business units requesting data - Need to report / maintain accounts for all types of spending – materials, SRA, Capital, etc.

GRIR

GRIR ACCOUNTING ENTRIES

Difference requiring maintenance GRIR ACCOUNTING ENTRIES Cost center WBS Inventory GR / IR Vendor CFM Cash 1 100-A 100-B 100-A 100-C 100-B 100-D 100-C 100-D 2 100-A 90-B 100-A 90-C 90-B 90-D 90-C 90-D Perfect world GRIR Balance A = Goods Receipt B = Invoice Receipt C = Payment run (F110) D = Cash disbursement (F111) Difference requiring maintenance

GRIR MAINTENANCE WHY

GRIR - MAINTENANCE - WHY - Fiduciary responsibilities (internal/external reporting) - System requirement – manual intervention

GRIR MAINTENANCE REPORTS

GRIR MAINTENANCE REPORTS Work Process SAP Solution New Design Daily Report Material/Other Planned Delivery Costs Transaction Log of Cleared Items enhanced

GRIR MAINTENANCE REPORTS MATERIALS / OTHER - Report - Based on MR11 transaction - Enhanced for data selection - Clearing - MR11 - Enhanced for data selection

GRIR MAINTENANCE REPORTS MATERIALS / OTHER REPORT OUTPUT

GRIR MAINTENANCE REPORTS MR11 Clearing

GRIR MAINTENANCE REPORTS PLANNED DELIVERY COSTS - Report - Custom ABAP for selection - Clearing - Contained in the same report

GRIR MAINTENANCE REPORTS PLANNED DELIVERY COSTS

GRIR MAINTENANCE REPORTS LOGS - Custom table for tracking clearing transactions AUTOMATIC CLEARING REPORT (F.13) - Enhanced report – posting date, business area, etc.

GRIR MAINTENANCE REPORTS LOGS Both Material / Other & Planned Del. Costs

GRIR MAINTENANCE ROLES

GRIR MAINTENANCE ROLES - GRIR Implementation Leader - GRIR Policy Administrator - GRIR Maintenance Accountant

GRIR WORK PROCESS

GRIR WORK PROCESS - Global accounting standard created - Reports forwarded to business owners for approval to clear - Threshold amount low value clearing - Clearing entries tracked and reported to management

GRIR WORKDAY SCHEDULE

GRIR WORKDAY SCHEDULE WD Task Who +1 >30 days docs Site Contact GRIR Maintenance Acct +3 >90 days docs (1st level review by GBS) +6 > 90 days docs To Site Contact +15 > 180 days doc (Clear documents to P&L) +16 >180 vendor docs (Clears vendor accounts) Weekly Automatic Clearing -1 Measures reports GRIR Policy Administrator

GRIR SUMMARY

GRIR SUMMARY - Global business centers have key users - Reports are forwarded on periodic basis* (both threshold and approval) - Approval given (silence is consent) - Clearing entries made - Reporting to management *if corrections needed for GR or IR these are done prior to issue of clearing request

GRIR LEARNINGS

GRIR LEARNINGS - Large effort – reports / training - Clean up – takes time - Business needs to be informed of impact

GRIR REDUCTION

GRIR REDUCTION - E mail dunning - ERS - Measures - Payment on time - Monthly measures review with Centers - Balance sheet review of accounts

GRIR DEVELOPMENT

GRIR DEVELOPMENT - Business Warehouse Report potential clearings Report clearing Report by Global Bus. Unit

QUESTIONS

Thank you for attending! Please remember to complete and return your evaluation form following this session. Session Code: 4202