1. Best Practices in Managing Spend PeopleSoft Enterprise Financial Management Applications April 5, 2006 @ 10:30 am

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3. Agenda Spend Management Issues Best Practices How PeopleSoft Enterprise Delivers Q&A

4. Spend Management Issues Maverick Spend Underutilized Assets Excessive Complexity Ineffective Cost Mgmt

5. Best Practices in Managing Spend Visibility into transactions and proactive monitoring Monitoring and analysis based on policies Automated processing with built-in internal controls and workflow Expense Payables Self-Service Management and Issue Resolution Tools Employees, Suppliers

6. Benefits Realized with Best Practices Enforcement of spend against policies on an ongoing basis Less time on non-value add activities More transactions per FTE at a lower cost Fewer errors Improved relationship with suppliers

7. Delivered Best Practices Expenses Payables eSettlements Best practice features are already available in many of the solutions you own today.

8. Travel and Expense At-a-Glance Manage Travel and Expense Supplier Negotiations Cost Visibility, Controls & Audit Travel Create Approve Pay Audit Credit Card Providers Employees Enforce policies, procedures Preferred suppliers Ensure compliance Heavy reliance on automation Access to timely and comprehensive travel data Maverick spenders Top Spenders Trend (Corporation, Industry, Sector) Centralize travel management and supplier negotiations

9. Enforcing Compliance with Company Policy Submitting Expenses Manage taxable expenses Configurable accounting by expense Automated deductions Preferred vendor tracking Enterprise Expenses

10. Expenses Summary Approvals Visibility into Ongoing Activities Leverage delivered analytics to gain business insight Visual alerts provided on summary approvals to easily identify out- of-compliance transactions Expenses Analytics

11. Approvers may be configured for different levels of authorization to modify transactions by transaction type.

12. Travel and Expense Processing The Paper Premium $1 Billion+ companies with 132,000 expense rpts / year Wastes $15,840 Million over 3 years Electronic transactions cost 83% less Other Benefits of Automating Travel and Expense Credit card Incentive strategies Supplier negotiation Audit control * Sources: Aberdeen Group, Best Practices in Category Spend Management: Travel

13. Enable automated integration to Projects Enhance corporate card payment reconciliation Rollover prior year budget allocations for travel Pre-configured workflow for approvals & audits Configurable Summary Approvals Expenses 8.9 Enhancements

14. Benefits of Best Practices Use of pre-trip travel authorization – Enforce compliance to company policy. Enable My Wallet expense entry – Spend more time on strategic tasks. Automate Expenses policy and compliance – Visibility into spend using analytics. Reduce costs through improved negotiations with travel suppliers.

15. Procure-to-Pay At-a-Glance Source Purchase Settle Supplier Selections Negotiations Requisitions Approvals Orders Receipts Invoices Payments Manage Suppliers & Contracts Supplier PerformanceExpirations & Renewals

16. Best Practice – Streamline Payables Prevent non-PO invoices Enable duplicate vendor setup checking Apply 2/3 way matching Eliminate paper invoice (use ERS, web-invoicing, XML/EDI) Enable Supplier self-service Take advantage of payment discounts

17. Best Practice – Enable Duplicate Invoice/Vendor Checking Invoice Controls Vendor Controls

18. Matching Lines Purchase Order InvoiceReceipts Streamlined matching process Configurable Match Rules attached to vendors Usage of Document Association Criteria Header Level Matching Expedite Match Exception Handling New Matching Workbench Debit Memos – Auto-Adjustment Supplier Metrics Use of Summary Invoice Best Practice – Automate 2/3 Matching Matching Headers Purchase OrderInvoiceReceipts

19. Match Rule Control Attached to the Vendor Continue if True Continue if False Always Continue **NEW Match Exception Debit Memo

20. Payables Processing The Paper Premium Manual cost @ 8.50 / invoice Electronic cost @ 3.44 / invoice 0 $1,000,000 $500,000 $1,500,000 $2,500,000 $2,000,000 1 Year2 Years 3 Years Cumulative Cost Difference Sources: Gartner Inc., Invoicing and Payments: The Payer Value Proposition and Oracle Corp. $2.0 Billion company with 100,000 invoices / year Wastes $1.5 Million over 3 years Electronic transactions cost 60% less

21. Best Practice – Enable Supplier Self-Service eSettlements fully integrates with your PeopleSoft Payables : Requires activation, not implementation Payables setup and data is automatically pulled New roles / workflow / security are available Buyer and Supplier Self-Service facilitates enabling of new users Web-invoicing allows your supplier to key-in invoices effortlessly

22. eSettlements Business Process B2B Collaborative Framework HTML

23. Best Practice - Web-based Invoicing Step 1 – Supplier logs in the Supplier Self-Service eSettlements Supplier Step 2 – Supplier selects information in restricted list of values, copy from his PO lines (or his receipts) Step 3 – Once the web-invoice is completed, the supplier submits it to Buyer review Step 4 – Buyer reviews the invoice and authorize to be registered Step 5 – The supplier can Print a copy of the invoice For his own records Or request an XML file for ERP integration Step 6 – The invoice follows the buyer approval process For payment

24. Web-based Invoicing Benefits Easy to use (no knowledge of EDI/XML) Eliminate Paper Allows vendor more control over accuracy of data Eliminates re-key entry errors Eliminates lost and slow mail No software to buy for the vendor Route the invoice to the appropriate approver Speed Ease of use Quality No cost

25. Streamlined Straight-though-Processing Summary Invoice Entry Re-designed Quick Invoice Entry Enhanced Voucher with Balancing Voucher Excel Upload Enhanced Controls and Compliance Flexible, Configurable Match Rules Header Level Matching and Tolerances Matching Workbench - Match Actions and Drill-down Debit Memos –Auto-Adjustment Document Association (formerly Receipt Aware) Matching Workflow and Notifications Payables 8.9 Enhancements

26. Improved Performance and Usability Improved Payables Inquiries with Configurable Search Initiate Real-Time Processing Across Payables Standardized Archiving Tool for Financials Compliance - JFMIP VAT Improvements Payables Integration Real Estate Management Financial Gateway (through Cash Management) Maintenance Management Claims Management (through Purchasing) eSettlements Payables 8.9 Enhancements

27. Benefits of Best Practices Automate requisition/PO process Use automatic matching engine with business rules – Drive down costs associated with paper processing and manual activities. Enable supplier management tools - Utilize early payment discounts and improve working capital management. Enable supplier self-service - Improve supplier relationships and reduce supplier inquiries.

28. A Q &

29. Payables/eSettlement: amrita.mehrok@oracle.com Travel & Expenses: diana.gray@oracle.com mark.sinn@oracle.com diana.gray@oracle.com Contacts