1. 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
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2. Agenda About Re/Max Requirements Implementation Design Concept
Implementation Team
Business Benefits
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4. REQUIREMENTS
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5. Buyer Flexibility
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6. 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
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7. 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
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8. Implementation
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10. IMPLEMENTATION TEAM
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11. 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)
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12. EXAMPLE
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13. $ 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
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14. $ 50,000
PO entered with one line, with the total amount of the purchase and the first requested delivery date
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15. 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.
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16. 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.
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17. 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
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18. 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)
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19. Monthly Close Process
As part of the monthly close, the new Accrual Preview process is run
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20. Accrual Preview
Preview report shows accrual amounts for all open PO’s for the period, sorted by legal entity
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21. 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
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22. 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
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23. 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
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24. 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
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25. 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
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26. PO Forecasting Report
Users can anticipate where they may need to issue a change order based on amount spent to-date
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27. 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
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28. Design/Concept
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29. 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
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30. Data Model
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31. Implementation Team
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32. 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
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33. Business Benefits
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34. Business Benefits
Productivity
Compliance
Optimize
Costs
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35. Successful Launch!!
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