Purchasing Releases 8.9 and 9.0

1. PurchasingReleases 8.9 and 9.0 Alexandra Haytcher Michael Webb SRM Product Strategy

2. Purchasing 8.9 Enhancements Purchasing 9.0 Enhancements Agenda

3. Purchasing 8.9 Enhancements

4. Vendor Rebates – Rebate Agreements and Accruals Vendor Rebates – Claim Management Workbench Vendor Rebates – Rebate Analysis Workbench POA Enhancements SRM Dashboard Procurement Card Enhancements Future Dated Conversion Rate Changes Vendor Master Enhancements Order Multiples Receiving Enhancements Purchasing 8.9 Enhancements

5. Vendor Rebates – Rebate Agreements and Accruals Vendor Rebates – Claim Management Workbench Vendor Rebates – Rebate Analysis Workbench POA Enhancements SRM Dashboard Procurement Card Enhancements Future Dated Conversion Rate Changes Vendor Master Enhancements Order Multiples Receiving Enhancements Purchasing 8.9 Enhancements

6. Allow customers to capture contractual rebate agreements with their suppliers, accrue rebate amounts and receive rebate payments Rebates are negotiated as contractual agreements Agreements specify the rebate factors and payment frequency Rebates are accrued on goods receipt or at the time of vouchering Periodically a rebate claim is sent to the supplier Suppliers can pay by check or through a debit memo Vendor Rebates

7. Vendor Rebates

8. Vendor Rebates – Rebate Agreement

9. Vendor Rebates – Rebate Agreement

10. Rebate Agreements supports the following Rebate Rule Types Standard Rebate Retrospective Rebate Flat Rebate Growth Bonus Marketing Allowance Vendor Rebates – Rebate Rule Types

11. Vendor Rebates – Rebate Rules

12. Rebate information defaults onto PO Line On-line entry PO Sourcing Vendor Rebates

13. Criteria used for defaulting and validating the Rebate Agreement association with PO Rebate must be Approved PO date must fall within Rebate Agreement Begin and Expire dates Rebate vendor, and optionally vendor location, matched against PO vendor Rebate vendor matched against vendor specified on GPO Manufacturer page (for GPO Contracts) Vendor Rebates

14. Criteria used for defaulting and validating the Rebate Agreement association with PO, continued Item, Category, and Item Exceptions; or Open Item Rebate Agreement Automatically Include PO Adhoc Items PO business unit specified on Rebate Agreement (for non-corporate Rebates) Direct Ship Option (Include Direct Shipments, Exclude Direct Shipments, Direct Shipments Only) Vendor Rebates

15. Rebate Accrual process - Calculates accrued rebates for PO Receipts, Vouchers and RTVs against POs associated with the Rebate Agreement Accruing against Receipts and RTVs is optional Backdate Rebate Agreements Associate or Disassociate Rebate Agreement with purchase order Rebate accruals will be recalculated accordingly Vendor Rebates

16. Vendor Rebates – Rebate Agreements and Accruals Vendor Rebates – Claim Management Workbench Vendor Rebates – Rebate Analysis Workbench POA Enhancements SRM Dashboard Procurement Card Enhancements Future Dated Conversion Rate Changes Vendor Master Enhancements Order Multiples Receiving Enhancements Purchasing 8.9 Enhancements

17. Generate Claims based on Accrued Rebate Transactions Includes previously deferred claims Claims generation date determined by Settlement Frequency and the calculated Next Claims Generation Date defined on the Rebate Agreement Automatically runs Rebate Accrual process before generating claim to calculate most accurate claim amount Validates Rebate Agreement’s Maximum Rebate Amount Vendor Rebates – Claims Generation

18. Manage all Claim activities View claims based on unique Workbench ID Approve, Defer, Cancel, and Unapprove Claims Dispatch claims to inform suppliers of expected payment Informs Payables/Receivables of pending supplier payment using Claim Settlement Process Matches supplier payments with Rebate Claims using the Reconciliation process For overdue payments, submit the deduction process to reverse Pending AR item, and send Debit Memo to Payables Claims Management Workbench

19. Claims Management Workbench

20. Vendor Rebates – Rebate Agreements and Accruals Vendor Rebates – Claim Management Workbench Vendor Rebates – Rebate Analysis Workbench POA Enhancements SRM Dashboard Procurement Card Enhancements Future Dated Conversion Rate Changes Vendor Master Enhancements Order Multiples Receiving Enhancements Purchasing 8.9 Enhancements

21. Record accrued rebate allocations allocated to sales organizations Vendor Rebates – Rebate Allocation

22. Analyze and inquire on Rebate Agreements View or extract all accrued rebate details View or print PO not Received inquiry Determine additional purchases to achieve next rebate threshold Evaluate rebate transactions by Month, Quarter, or Year Rebate Analysis Workbench

23. Analyze Rebates and view details Rebate Analysis Workbench

24. Vendor Rebates – Rebate Agreements and Accruals Vendor Rebates – Claim Management Workbench Vendor Rebates – Rebate Analysis Workbench POA Enhancements SRM Dashboard Procurement Card Enhancements Future Dated Conversion Rate Changes Vendor Master Enhancements Order Multiples Receiving Enhancements Purchasing 8.9 Enhancements

25. Improve buyer visibility of current supplier commitments Optionally require POAs from vendors POA status tracking on PO header Streamline buyer acceptance and identify exceptions that need to be reviewed Auto-approval of POAs within tolerance Allow for buyer side manual POA entry POA Enhancements Summary

26. POA Process Flow

27. Accessible from Purchasing Process Options page POA Settings at Purchasing Options Level

28. Specify whether POA is required for vendors. If selected … Helps suppliers filter POs within eSupplier Connection POA must be received by the specified number of days after PO dispatch or before the due date, whichever is first Otherwise, optionally buyer receives worklist notification Specify whether POA is required for Buyer initiated change orders Specify tolerances for automatically approving POA changes. Specify acceptable … Days before, and after, schedule due date Percent under, and over, schedule quantity Percent below, and above, PO unit price POA Settings at Purchasing Options Level

29. Indicate whether vendor is required to sent POA Options include POA Required, POA Not Required, Default from PO BU Settings Send alert to buyer if POA is not received Optionally default POA Required setting and tolerances from Business Unit POA Settings at Vendor Location Level

30. POA Enhancements on PO

31. Acknowledgement status added to PO Header For Vendors that require POAs Hyperlink to Acknowledgment pages Review, approve supplier POAs Create POA on behalf of supplier Buyer can manually Acknowledge POA from “Awaiting POA” to “Acknowledged” Automatically creates POA edit, history records POA Enhancements on PO

32. Blank – Hidden, PO does not require POA Awaiting PO Dispatch – PO is not yet dispatched or re-dispatched Awaiting POA – POA is required and PO is awaiting acknowledgment from Supplier Responded, Awaits Review – Acknowledgment received with changes not reviewed by Buyer Approved (PO Change Pending) – Buyer has approved supplier’s POA, but has not processed through PO Change Acknowledged and Acknowledged with Changes – Buyer has accepted supplier’s POA POA Enhancements – Acknowledgment Statuses

33. Buyer can override POA Required option on PO Header Details page POA Enhancements on PO

34. POs for which POA is required - POA has not been received within specified number of days from dispatch or due date POA Worklist Notifications

35. Vendor Rebates – Rebate Agreements and Accruals Vendor Rebates – Claim Management Workbench Vendor Rebates – Rebate Analysis Workbench POA Enhancements SRM Dashboard Procurement Card Enhancements Future Dated Conversion Rate Changes Vendor Master Enhancements Order Multiples Receiving Enhancements Purchasing 8.9 Enhancements

36. Collection of pagelets and metrics presenting aggregated view of source-to-settle business process for Buyers (and Managers in Release 9.0) Provides the ability to view Purchasing and eProcurement-related information in one centralized location Users are able to view transactions To which they are assigned as Buyer For Business Units in Buyer’s assigned Reporting Entity (group of Business Units) Based on Buyer’s assigned Calendar SRM Dashboard

37. SRM Dashboard

38. SRM Dashboard

39. Activity Monitor Worklist Items POs for which Purchase Order Acknowledgment is required, but the supplier has not yet responded within the specified number of days Contract Expiration Notification Other Worklist Notifications SRM Dashboard – Activity Monitor

40. Total Spend by Buyer and BU Contract Spend by Buyer and BU Graphical Display based on time period buckets defined by reporting entity’s calendar SRM Dashboard Metrics

41. Requisitions to be Sourced Hyperlink takes user to Requisition Details Overdue Purchase Order Schedules POs containing schedules that have not been fully received Hyperlink takes user to PO transaction Advance Shipment Notices Hyperlink takes user to ASN history Purchase Orders without Acknowledgements PO requires POA POA status “Awaiting Acknowledgment” and “Responded, Awaiting Review” Recently Dispatched Purchase Orders Hyperlink takes user to PO transaction SRM Dashboard Pagelets

42. Vendor Rebates – Rebate Agreements and Accruals Vendor Rebates – Claim Management Workbench Vendor Rebates – Rebate Analysis Workbench POA Enhancements SRM Dashboard Procurement Card Enhancements Future Dated Conversion Rate Changes Vendor Master Enhancements Order Multiples Receiving Enhancements Purchasing 8.9 Enhancements

43. Reduce the volume of invoices and improve PCard transaction reconciliation Ability to Select a PCard as a Payment method on the Requisition Have the PCard information flow through the PO sourcing process Ability to Select a PCard as a Payment method on the Purchase Order Multiple PCard number dispatch options Vendor Ghost cards Auto-Reconciliation of transaction for PCard Purchase Orders Procurement Card Enhancements

44. Three new Access Rights Use Procurement Card on Requisition – Determines procurement card visibility and card prompt values on requisition Use Procurement Card on Purchase Order – Determines procurement card visibility and card prompt values on purchase order Allow Override of Vendor Ghost Card – Allows buyer to select a different card on PO when Ghost Card is defaulted from vendor New Procurement Card Access Rights

45. Procurement card information specified at vendor location level Procurement Card

46. Ghost Card – Procurement Card that is associated with a specific Vendor or a specific Item, item category or commodity code. All purchases from the Vendor or for the item/category/code are charged to the associated PCard. Ghost Card support in 8.9 – The only option supported is Procurement Card associated with a Vendor Location Vendor Card – Term may be used interchangeably with Ghost Card Ghost Card

47. Accepts Procurement Card as Payment Method – If selected, Procurement Card can be used as a payment method on purchases using this vendor PCard Dispatch Option - PCard Dispatch Option controls how the PCard number is to be communicated to the supplier Display “Charge to Card on File” Display “Contact Buyer” Display “Contact Cardholder” Default from Business Unit option Display the masked card number Do not include reference PCard Information on Vendor

48. Types of Procurement Cards - Specify the only card types that are accepted by this vendor Vendor Card – Default “Ghost” card associated with vendor Use Vendor Card as default Payment method on purchase order – Vendor Card defined above defaults onto purchase orders Allow Override Vendor Card – Buyers may override the vendor card number on the PO PCard Information on Vendor

49. Requester and Buyer’s Procurement Card Set Up

50. Card Number – Card assigned to requester or buyer Available cards on Requester setup – limited to card numbers that the Requester has access to via Role security “Use Procurement Card on Req” on Access rights to roles (and the related assignment of roles to PCards) Use Procurement Card as default payment method on Requisitions (Requester Setup) – If selected, requester’s card is automatically assigned to requester’s requisitions Use Procurement Card asdefault payment method on Purchase Orders (Buyer Setup) – If selected, buyer’s card is automatically assigned to buyer’s purchase orders, if a ghost card does not exist Requester and Buyer’s Procurement Card Set Up