1. Greater China Enhancement Requests on EBS 11i11 Oracle APAC & GC Sales Consulting

2. Objectives  By introducing new capabilities and enhancements to our eBusiness Suite 11.5.11 through collaboration with Oracle Development team, Oracle Applications will increase its competitiveness in the Greater China enterprise application market place, which is a very strategic market for many global software companies.  Increase Oracle Applications revenue and market share

3. Scope  Enhancement Requests were submitted and trimmed down to the following 4 ERs: Periodic Average Costing GL Cost Allocations to Work Orders Freight & Special Charges Golden Tax Integration

4. Scope – Periodic Average Costing  In some countries, such as Taiwan, Periodic Costing is the most accurate costing method because legal requirements in Taiwan enforces that items have to absorb all direct and indirect production costs. For other countries such as mainland China, where any other costing method is used for fiscal purposes, Periodic cost is being used successfully for managerial purposes. Therefore, enhancements on PAC and new periodic cost absorption model are required to close the gap.

5. Scope – GL Cost Allocations to Work Orders  One of the common practices in China and Taiwan requires that product costs reflect the actual costs required to produce them. Traditionally this requirement has been achieved using resource and product overhead rates (indirect expenses such as utility cost) which are applied to products manufactured or produced during a period. These resource and overhead rates are estimated and revised periodically though the resulting rates are subject to estimating errors so current product costs may not fully absorb current period overhead. To achieve a resource charging and overhead allocation to product that fully complies with regional accounting needs, enhancement that allows the full charging of actual resource costs and the full absorption of actual overhead costs to products produced using a manufacturing work order system is required.

6. Scope – Freight & Special Charges  As capturing various cost to reflect the actual costing is important, Freight and Special Charges (F&SC) become another cost components customers would like to capture and distribute to the cost of the material or goods. F&SC are the costs associated with movement of goods from one location to another throughout the entire supply chain, particularly the movement of raw materials, finished and unfinished goods from suppliers. Typical examples include transportation cost, insurance cost, warehouse storage cost, port/pier fees, etc…. Benefits of capturing these costs include improving costing accuracy, enhancing cost monitoring and control (total procurement cost rather than item cost), and yielding a better strategic sourcing decision.

7. Approaches  Development will come and visit TW & China during the week of Nov 1 st 2004. The direct interaction will enhance the understanding of the requirements.  The enhancement of understanding is done via discussions with: Internal Oracle Sales Consulting & OCS team who have significant experiences in the related areas from previous projects/engagements. Partners who have related experiences Local or MNC customers who run their business operation daily in GC for living Potentially local CPA