Oracle EBS Cloud Impact Assessment Report - ETHICS

Oracle EBS Cloud Impact Assessment Report October/November 2019

Agenda- Cloud Impact Assessment

Introduction

Current State Assessment

43 44 45 46 47 48

ERP StrategiCloud Impact Assessment

07-12-2021

Client workshops

2019

Kick-off

Opstartsmøde (1, 2, 3, 4, 7, 8)

Udfyldelse af spørgeskemaer

• Økonomi (2, 4, 7, 8)

• Logistik (3, 4, 7, 8)

Executive (1, 4, 7, 8)

Økonomi (2, 4, 7, 8)

Logistik (3, 4, 7, 8)

IT Landscape & support (5, 4, 7, 8, Glenn)

Mat. rund

sendt

Discovery

Playback

Konklusion (1, 4, 6, 7, 8)

Demo - Option (1, 2, 3, 4, 5, 7, 8)

24/10

2 timer

24/10

2 timer

Gruppe Deltagere

1 . Styregruppe

Karsten Ole, Ditte, Ann, Nina/Bo

2. KØK -superbrugere

Jan A., Marianne VL, Marianne R, Rene N,Peter H

3. IPL -superbrugere

Henrik Fl., Thomas J, Claus J.

4. Projekt Per L, Christen, Ole G.

5. IT Drift Henrik O, Ali, AndersBirgitte, John, Allan

6. IT Ledelse Per B, Torben S, Glenn S.

7. IBM Andrea, Reinhard, Ole,Offshore

8. Oracle Anne-Marie, Allan

IBM

28/11

1,5 time

19/11

2 timer12/11

2 timer

19/11

2 timer12/11

2 timer

20/11

2 timer11/11

2 timer

Dec

IBM

12/11

1 time

Current State - System Overview

4

Dimension #

Number of EBS Production Instances

1 Core ERP

Dimension #

Application Version

12.2.8

Total Users 5532

Active Users2810 (2779 Emp

user)

Geographies Denmark

LanguagesDanish,

American English

# Operating Units 1

# Ledgers 1

Applications Oracle Modules

Accounts Payable Payables (incl. Payments)

Fixed Asset Accounting Assets

Accounts Receivable Receivables

General Accounting General Ledger, Subledger Accounting

Procure Materials and Services Purchasing, iSupplier, iProcurement

Supply Chain Planning Inventory, Bills of Material, Warehouse Management

Sales Order Processing Order Management

Current State – Process Overview

5

Business Area Module L2-Process

Record To Report General Ledger

Manage GL Master DataCapture Transactions Close Accounting Period Manage Financial Reporting

Customer Invoice to Receipt Receivables

Manage Customer Information Manager Invoices Manage Invoices Manage Receivables Process Customer Payments Manage Accounts Receivable Balances

Invest to Retire Fixed Assets

Acquire Assets Utilize Assets Retire Assets Close FA Period

Bank Statement to Cash Reconciliation Cash ManagementManage Bank Master Data Manage Bank Statements Manage Cash Forecasting

Current State – Process Overview

6

Business Area Module L2-Process

Expense Report to Invoice Staff Expenses

Setup and Maintain Expenses

Process Expenses and Advances

Manage Payments

Source to Contract

Sourcing Manage Supplier Negotiations

Purchasing Manage Supplier Information

Contracts Manage Supplier Contracts

Procure to Pay

Purchasing

Manage Supplier Agreements

Manage Procurement Catalogue

Manage Requisitions

Manage Purchase Orders

Payables

Manage Invoices

Manage Payments

Manage Accounts Payables Balances

Current State - System Extension Overview

7

Applications Interfaces PL/SQL Extensions

Forms Workflows OAF Reports WebADI Personalization Total

Accounts Payable

8 12 2 2 5 2 127 158

Accounts Receivable

10 5 2 7 21 45

Fixed Asset 1 2 5 4 12

General Ledger 8 4 1 11 16 40

HRMS 2 1 3

Purchasing (including

iProcurement)

2 1 5 29 2 20 59

Inventory (including

WMS)

9 5 5 5 28 52

Order Management

2 1 3

39 28 8 7 34 34 5 217 372

Current State – Top Pain Points

8

# Pain Point Summary

1 Payables workbench – There are lot of customizations in current system.

2 Workflow – Lot of personalizations in current system - e.g. currently when users are having the same name, it is a pain to select the right one for approval process.

3 Account Reconciliation and Transactions Matching process are manual and inefficient.

4 Settlements for Multiple Bank Accounts fail and only one account is paid. This issue happens on daily basis.

5 There are invoices that do not match to POs automatically. There are instances when Purchasing department needs to update Agreement Data to solve this.

6 iProcurement user interface could be more user-friendly – e.g. when searching and scrolling through items of long lists. This has worsened after the upgrade.

7 There are issues with overall stability and robustness of the system, e.g. Login, Connectivity and Concurrent Manager issues occur.

8 The regular maintenance is based on manual procedures and takes large technical, functional and governance effort.

Executive Summary - Current State Cloud Affinity & Target State

9

Module Current State

Target State

Accounts Payable

Accounts Receivable

Fixed Asset

General Ledger

Purchasing (including iProcurement)

Inventory (including WMS)

Order Management

Reporting Capabilities

Current State:• Performance of applications affecting business user productivity.• System Availability, Product Patching and Update are causing lot of challenges

to system IT team• Lack of testing for scalable architecture (non functional requirements)• Reduced efficiencies in business processes due to high level of customization

(upgrades are heavy)• High level of customizations in Reporting requirements (APEX)• Several business processes depend on user interaction in multiple steps,

impacting efficiency (e.g. reporting on outstanding approvals/receipts, manual payment import AR, choosing next approver manually)

• Little automation in place• High cycle time for AP Invoice processing • Extended period close time.• Import of payments from customers is a manual process

R

G

A

A

A

A

A

A

R

G

A

High level of deviation from Oracle standard process

A

G

G

G

G

G

G

Target State:• Oracle Managed Cloud Services

• Application Availability Service Level Target – 99.5%• Capacity and Performance Management• Cloning and Patching

• Enhanced Feature of Oracle Cloud• Automatic Item Numbering• Saved Search capability

• Enhanced reporting capabilities like OTBI, Infotiles, Dashboard etc.• Identified need for integration to 3rd part solution for Scanning and

Kanban Replinishement processes (known solution available)

AG

Medium level of deviation from Oracle standard process

Low level of deviation from Oracle standard process

10

Appendix

11

Pain Points

Current State - Top Pain Points

12

# Module Contributing Factors Fitment in Cloud

1 Account Receivables Import of payments from customers is a manual process.

2 Accounts Payables Audit tracking is not complete as only first and last “handler” is visible. Not the ones doing steps in between like for example updates of accounting. Not visible online in the workbench.

3 Account Payables Workflow – when Users are having the same name, it is a pain to select the right one for approval process.

4 Account Payables Settlements for Multiple Bank Accounts fail and only one account is paid. This issue happens on daily basis. (Alternate solutions might be acceptable)-

5 General Ledger Account reconciliation and Transactions matching process is completely manual and thus inefficient.

Current State - Top Pain Points

13


6 Chart of Accounts Updates of code combinations – creation and deactivation

7 Chart of Accounts Deactivation of code combinations do not provide any warning if a code combination is still active/used. Also causing problems when reposting is done as no warning is given.

8 Accounts Receivables Maintenance of templates in invoices and dunning letters is cumbersome, not at least because there are several templates for the same type of document

9 Worklist Is it possible to get access to worklist for example department wise without people having to delegate to each other?

10 Staging tables Lookup in staging tables is cumbersome

Current State - Top Extensions

14


1 Account Payables Payables workbench

2 Account Receivables Invoice and Dunning process Mass change of dunning codes with report

3 Tax Tax/VAT

4 AP, AR and GL Accounting Transaction Report for CPR All data regarding the specific ydelsesmodtager (info kept in DFF’s with lookup in CPR) will be selected from Oracle E-Business suite, this covers accounting lines from receivables, payables and general ledger

5 General Ledger Account string creation / maintenance

6 AP, AR and GL Searching for transactions across modules, for example using description field

Current State - Top Extensions

15

# Module Contributing FactorsFitment in Cloud

7 Accounts Payables Nemkonto – Retursvar Return messages on payments: IN13b – Integration, special by updatingDFF with bank account number of receiver

8 General Ledger Use of DFF for alternate account in code combination table when importing Pay transactions to GL: IN32

9 PO, GL Customization of standard program Retro active price update of purchasing documents and development of new program RS Lager fakturapris justering CU49

Current State - Top Watch outs

16


1 Account Receivables Invoice and dunning letter processes( including the integration for transmission)• Customer may receive invoice multiple times or not at

all• Layouts on invoice and dunning letters• Invoice/dunning letter counting, to secure it’s only

generated once• Handling of currency on invoices and dunning letters

2 Accounts Receivables Print of invoice directly from transaction workbench –description in CU162 – not yet developed

3 General Ledger ▪ In a certain FSG row set we have information that is used for tax calculation on transactions in General Ledger (CU68?) and a special row set with people responsible for account reconciliation (CU76)

4 Cross modules Are there essential standard reports that have been removed from Fusion compared to OEBS and that is NOT replaced by other functionality – example Payables Trial Balance and Aging reports in Receivables

5 AP and AR Internal invoicing and payment at invoice level, today there is an customization on that

Current State - Top Watch outs

17


6 System administration Setup of users with roles instead of responsibilities (RBAC)

7 Workflows Migration from workflow and AME to BPM

8 Accounts Payable During conversion how to handle links from the existing system back to Basware?

9 General Ledger Options to calculate TAX directly in GL

10 Alerts The client was referring to Alert Composer in HRMS asking if there is any according alert functionality in other modules

11 Procurement Electronic Data Interchange with Electronic Devices

Current State - Top Reports/Jobs

18


1 General Ledger FSG reports are used quite comprehensively – client needs tool with according functionality that can be handled by users. As an important example look at ‘KØK – Statusbalance’. That report is one of the most complex

2 Fixed Assets Anlægsnote CU69

3 General Ledger RS: Account Analysis 1, 2, 3 (RS own developed report)RS: Leverandør/Bank (RS own developed report)RS: Klientmidlerrapport (RS own developed report)

4 Accounts Payables Interface of Tax (B-Skat) and interests (rente) to external authority, IN12a and IN12b, so we are talking integrations

5 Cross modules APEX reports are used quite comprehensively – client needs tool with according functionality that can be handled by users – example ‘Access to responsibilities’ to be provided.

Current State - Pain Points Resolution

19


1 Account Payable Credit memo in one bank a/c and invoice with another remittance bank account can not be clubbed as per underlying Oracle Grouping logic

2 IT System Users are unable to perform transaction and approval on the go using their mobile phones.

3 IT System There are issues with overall stability and robustness of the system as frequent Login and Connectivity issues occur

4 IT System The update process is manual and takes large technical, functional and governance effort from users

5 Procurement iProcurement user interface gives problems – e.g. When searching and scrolling through items of long lists. This has worsened after the upgrade.

Current State - Pain Points Resolution

20


6 Procurement There are invoices that do not match to POs automatically. There are instances when Purchasing department needs to update Agreement Data to solve this.

7 Procurement There are too many documents types flowing through electronic flow e.g. Pos, Confirmations etc.

8 Procurement Supplier often does not send the exact quantities ordered and it requires manual effort from purchasing department to fix it.

21

Customizations

22

Personalization

Invoice workbench Approval workflow

Approval is at line level i.e. individual

lines are to be approved

Different lines can have different

approvers

For PO matched line there should be no approval required.

Quick Invoice

Used for invoices to be raised for Internal suppliers like 'Cash'

and 'Bank’

Custom menu is created so that once clicked, this will save

the record and run the import program automatically.

AR Transaction workbench

Information of benefit recipient like patient to

be stored in DFF and importantly to fetch the

details based on the CPR number by

integrating/validating with the CPR register

To freeze all the fields of the transaction after it is sent to customer of RS –

exception is Distribution is still

editable

Segment Value creation

To create or update any value, concerned team

needs to be contacted

Journal entry form

The sum of all lines in the

journal, which are charged on "IM

ART" (segment 4) starting with "9" (for example 9,

91, 92, etc.) must be balanced in

Debit and Credit

Majority of them are Approval related and other personalizations

Customizations

23

Object Type As –Is Functionality Cloud Fitment

PL/SQL ExtensionsRestricting Users from approving their own InvoicesMechanism: This is PL/SQL customization for CPR number validation and is called from Invoice workbench form personalization.

PL/SQL Extensions

Accounting Date and Selection Criteria for TransferMechanism: This PL/SQL customization has database trigger XXDEV_CU56_GL_DATE_TRG on invoice distribution table which will update the gl_date on invoice on change on posted_flag value. This uses custom hook XXDEV_CU56_INV_HOLD_PKG which will be automatically called when the invoices are going to be validated.

PL/SQL Extensions Determination of approver groups and primary approver Mechanism: This has customized standard workflow APINVAPR and custom PLSQL package xxdev_cu57_ap_workflow_pkg for Line Level AP Invoice Approval workflow customizations.

PL/SQL Extensions Preventing creation of duplicate transactions for listed integrationsMechanism: Payable invoice work bench form is customized on standard oracle d2k form APXINWKB.fmb on its Search Window by addition of multiple search fields and LOV fileds to search range of invoices. These text fields and LOVs are also dependent to each others values. This form is also customized on its CUSTOM.pll for dynamic 'Menu' selection. There are also personalizations on this form.

Forms Payables Custom Workbench - Pay Group Interval Search & Count of Matching RecordsMechanism: Workflow customized to allow or prevent auto creation of PO based on a couple of field values

Customizations

24


Forms Standard mass addition from customized to query mass additionsMechanism: FAXMADDS.fmb modified to develop a new custom form to restrict asset data based on the criteria of expense account and location segments.

Forms

Standard form customization to query assetMechanism: FAXASSET.fmb modified to develop a new custom form which will search the asset within an interval for the expense account and the location flexfield.

Forms

Mechanism: Data of Dunning Return Message comes through webservice and gets inserted into custom database table. From this custom table return message data gets shown to user on oracle d2k form for user verification.

OAF Customization on Approval Notification Summary Page Mechanism: Page personalized to add new fields, added new region to display attachments and controller customized to achieve various functionalities

OAF Notification Reassignment Page having Customizations to find the Employee for ReassignmentMechanism: Page personalized to add new field and controller customized to populate values on various fields

Customizations

25

As –Is Functionality Cloud Fitment

Interfaces

Electronic Invoice Import from mySupply (External System) to the IN53 Staging TableMechanism: External system writes data to Oracle staging tables. Custom program validates data and puts that into interface tables. Standard import process loads data into base tables.

Interfaces

Inbound interface to import CVR customer and supplier informationMechanism: Biztalk imports data files from FTP server to Oracle server. SQL Loader writes data into Oracle staging table from flat files. Custom package loads data into base table using API

Interfaces

Dunning letter return message from Strålfors and E-BoksMechanism: Response comes from Strålfors and E-Boks web service via BizTalk for all the dunning letter and attached invoices posted to Strålfors and E-Boks. Then it is updated back to OEBS for reflecting in frontend.

Customizations

26


FormsPayables Posting Text FormMechanism: Custom Form created to search General Ledger (posting line text),Payables (Invoice line text) and Receivables (Invoice line text).

OAFCustom Page created for viewing the Invoices created for Internal ExpensesMechanism: Custom page created to display various information.

OAF Customization on the Approval Notification Detail Page like Alias added in the screen.Mechanism: Page personalized to make it hidden

Workflow Payables Invoice Approval on Line LevelMechanism: Custom AME to get approver name from invoice line. Workflow customized to initiate approval at line level

Customizations

27


PL/SQL Extensions

Automatic sequence numbering for master items Mechanism: Custom Package created and called from form personalization. Custom sequence is created and called within the package. This sequence is updated to the Item Number form field during item creation.

PL/SQL ExtensionsTrigger to change the Deliver to Location of requisitions for Kanban fulfillmentMechanism: Trigger created on PO_REQUISITIONS_INTERFACE_ALL table. Trigger will be updated for any change in Kanban Card.

PL/SQL Extensions Stock Locator in Direct Shipments Mechanism: It should be possible to deliver product to specific departments from a central warehouse. This customization follow the required flow around delivery from central warehouse/depot to the Department.

PL/SQL Extensions Account Update for Kanban and Min-Max Requisitions Mechanism: Update of accounting on requisition interface table

Workflow Customer Create PO Mechanism: Workflow customized to allow or prevent auto creation of PO based on a couple of field values

Workflow PO Account Generator Mechanism: Workflow customized to derive custom values for a couple of segments

Workflow Custom Page for PO Item Consumption Mechanism: New custom page created having facility to search records at the detail section after providing parametrs at the master section

Customizations

28


InterfaceExtract to Health authority Mechanism: Custom package generates extract file from base table dataBiztalk copies extract file to FTP server for external system to be picked up

Interface

Web-Bestilling Interface Mechanism: Biztalk writes data into Oracle staging tables from flat files Custom program validates data and puts that into interface table Standard import process loads data into base table

Interface Item to TDOCMechanism: Custom package generates extract file from base table dataBiztalk copies extract file to FTP server for external system to be picked up

Interface Product from TDOC Mechanism: Biztalk writes data into Oracle staging tables from flat filesCustom program validates data and puts that into interface tableStandard import process loads data into base table

Interface Customer to TDOC Mechanism: Custom package generates extract file from base table dataBiztalk copies extract file to FTP server for external system to be picked up

Interface Order to TDOCMechanism: Custom package generates extract file from base table data Biztalk copies extract file to FTP server for external system to be picked up

Interface Received quantity to TDOC Mechanism: Custom package generates extract file from base table dataBiztalk copies extract file to FTP server for external system to be picked up

Customizations

29


InterfaceOrder Shipments from TDOC Mechanism: Biztalk writes data into Oracle staging tables from flat files Custom program validates data and puts that into interface table API loads data into base table

Interface

Usage of items from T-DOC Mechanism: Biztalk writes data into Oracle staging tables from flat files Custom program validates data and puts that into interface table Standard import process loads data into base table

Interface Return of items from T-DOC Mechanism: Biztalk writes data into Oracle staging tables from flat files Custom program validates data and puts that into interface table Standard import process loads data into base table

Interface Reallocation of items from T-DOC Mechanism: Biztalk writes data into Oracle staging tables from flat files Custom program validates data and puts that into interface table Standard import process loads data into base table

Customizations

30


ReportsPO Layout Mechanism: PO Layout from concurrent program + BWC PO page

ReportsKanban Label Print Mechanism: Printing of the Kanban Card as labels to be placed at the specific locators

Reports Kanban Locker Overview Mechanism: A report displaying a particualar Kanban Locker overview

Reports Printing of barcode labels Mechanism: Print of bar codes for RS internal item number and RS inventory location

Reports Pick Slip Report

Reports Pack Slip Report

Oracle EBS Cloud Impact Assessment Report - ETHICS

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