1. Oracle Approvals Management (Approvals Management Engine - AME) with iProcurement Jan 17, 2007 Manoj Desai Dharmang Purohit

2. 2 © 2007 UBEX Corporation and TIBCO Software Inc.. TIBCO Software Inc.  TIBCO Software Inc. is a leading business integration and process management software company that enables real-time business.  With over 2,500 customers, TIBCO has given leading organizations around the world better awareness and agility— what TIBCO calls The Power of Now®.  TIBCO is recognized by top analysts for both market and technological leadership in service-oriented architecture (SOA) and business process management (BPM) domains.  Visit www.tibco.com for more informationwww.tibco.com

3. 3 © 2007 UBEX Corporation and TIBCO Software Inc.. Presentation Objectives  Business Case  Feature Description  AME Components  Define Rule in AME  Terminology  Solution overview  Implementation steps  Benefits  Lessons learnt  Questions

4. 4 © 2007 UBEX Corporation and TIBCO Software Inc.. Business Case  Situation prior to AME implementation  Core purchasing approval structures within Oracle Purchasing based on:  Job  Department  Approval amount limits  Approval hierarchies maintained across 14 operating units.  Linear Employee/Supervisor approval hierarchy  Dummy job roles to facilitate budget review

5. 5 © 2007 UBEX Corporation and TIBCO Software Inc.. Business Case  Major pain points  Maintenance issues  No possibility for creating global structure  Approval hierarchies had to be maintained across 14 operating units  Exceptions to Employee-Supervisor hierarchy were not handled easily  Approval cycle process issues  Inefficient budget review process – rejections require start from scratch  Project objectives  Determine an approval structure to be maintained on a global basis  Improve budget review cycle time

6. 6 © 2007 UBEX Corporation and TIBCO Software Inc.. Business Case - ROI  Cost of NOT implementing AME  Manual data entry & testing to maintain 14 operating units – 8 hours per month  Data entry errors and recovery  Longer requisition approval turnaround time  Cost of implementing AME  Consulting - 70 person days  TIBCO internal – 36 person days  Return  Manual data entry reduced by 95%  10% improvement in approval cycle time

7. 7 © 2007 UBEX Corporation and TIBCO Software Inc.. Feature Description  What is AME?  Oracle Approvals Management (AME) is a self-service Web application that enables users to define business rules governing the process for approving transactions in Oracle Applications (where AME has been integrated).  AME is tightly integrated with Oracle Workflow

8. 8 © 2007 UBEX Corporation and TIBCO Software Inc.. Define a rule in AME Components of Rule are: Attributes: requisition amount, department Conditions: 5001 <= requisition amount <= 25000, department = 84200 Approval: Pre-approval group + direct hierarchy Rule If Requisition Amount between 5001 and 25000 USD and Department = 84200 then require pre-approval from FA2 and approval in direct hierarchy up to absolute job level 6

9. 9 © 2007 UBEX Corporation and TIBCO Software Inc.. Terminology  Pre approval group = A group comprising of finance analysts responsible for budgetary approval (selected based on amount, department)  Chain of authority = The main approval group or employee supervisor hierarchy  Post approval group = A post approval group which can approve requisitions after the initial chain of authority based on conditions (amount, department, etc.)  Job Level = Approval Authority level associated while defining a job in Oracle HRMS

10. 10 © 2007 UBEX Corporation and TIBCO Software Inc.. Solution Overview - Global Purchase Requisition Approval Hierarchy Enter Requisition up to $1.5K Line Mgr Approval Enter Requisition Up to 25K Financial Analyst * Director Approval Dept VP * Line Mgr Approval Enter Requisition Up to$50K Financial Analyst * Corporate Controller CFO Rule #1 Rule #4Rule #5 Post approval group Sr. Officer Line Mgr Approval Mid Mgr Approval Enter Requisition Up to $5K Rule #2 Line Mgr Approval Mid Mgr Approval Enter Requisition Up to $10K Rule #3 Financial Analyst * Sr Mgr Approval Chain of Authority Pre approval group Sr Mgr Approval Director Approval Mid Mgr Approval Sr Mgr Approval Director Approval Dept VP * Line Mgr Approval Mid Mgr Approval Sr Mgr Approval Corporate Controller Defined in AME Job Lvl 3 Job Lvl 4 Job Lvl 5 Job Lvl 6 Job Lvl 7 Job Lvl 8 OracleHRMSOracleHRMS

11. 11 © 2007 UBEX Corporation and TIBCO Software Inc.. Implementation Steps

12. 12 © 2007 UBEX Corporation and TIBCO Software Inc.. Benefits  AME helps you maintain your business logic associated with approval transactions globally from single window  Lets you cut down approval related workflow customizations, hence reducing the cost of ownership  Helps you leverage common expenditure policies across modules, thus consolidating your approval policy requirements  Any transaction is assured to be approved under the latest conditions, regardless of organizational changes, currency fluctuations or transaction data  Built-in testing utility to check the correctness of setup performed for both real-time and test transactions, hence reduces the need for elaborate testing cycles  Intangible benefits derived from solution design  Reduced requisition approval turnaround times, thereby increasing the efficiency of our procure-to-pay process  Increased visibility of spending traits upfront to management chain

13. 13 © 2007 UBEX Corporation and TIBCO Software Inc.. Lessons Learnt…  A well defined purchasing expenditure matrix helps to establish a solid foundation for creating approval rules in AME  Gaps within employee-supervisor hierarchy with respect to job levels can extensively affect desired functionality  It is always a safe practice to close down all in-process requisitions before going live with AME implementation  Analyze the impact of your implementation with other applications already using AME and also with other applications using employee-supervisor hierarchy for approvals  Identify your exception handling strategy upfront in case of any errors encountered during calculation of approvers by AME  Identify your requirements for segregation of duties aspect (SOX).

14. 14 © 2007 UBEX Corporation and TIBCO Software Inc.. Ubex Corporation  Ubex Corporation is a premier provider of end-to-end solutions based on Oracle Applications  Ubex is an Oracle Certified Partner  UBEX Booth  Visit Booth # 14 today or www.ubex.com for more informationwww.ubex.com  Enter for a chance to win Nintendo Wii !!!

15. 15 © 2007 UBEX Corporation and TIBCO Software Inc.. Q & A’s

16. End - Thank You -