Transform the Weakest Link

1. Transform theWeakest Link The Month End Financial Close Process to anOpportunity NorCal OAUG Training Day 2008 Vibrant Channels Inc - Booth #16 Ram Subramanian ram@vibrantchannels.com

2. Learning Objectives • Understanding the Weakest Link • Reviewing the Opportunity • Solution for the Transformation • Solution Features

3. Today’s Speaker • Vibrant Channels Inc • Oracle Partner focused on E-Business suite. • Providing specialized implementation and development services. • Extensive onshore and offshore capabilities. • Products: • Vibrant iClose • Automate month end close – Effectively and efficiently! • Vibrant iPick • Order fulfillment – Always, every-time! • Vibrant iTrack • Transparent real time data – from wherever, whenever! • Vibrant iManage • Manage Integration – Plug & play with Oracle E-Biz suite • Vibrant iMap • Bring life into business data Ram Subramanian Head of Enterprise Solutions division of Vibrant Channels Inc. Functional Consultant, with over 12 years in Oracle E-Biz suite implementations – Finance, Distribution, Planning and Manufacturing modules. Oracle Customer Advisory Board Member for OSFM and pioneer in OSFM implementations. Senior Program Manager (Consulting) at Cisco Systems, San Jose, handling global programs. Manufacturing Application Specialist (Consulting) at Qualcomm, San Diego. Implementation Lead for several rapid implementations in Bay area with Quovera. Business Analyst (Consulting) with Alcoa Fujikura Limited. Over 15 years experience in Finance and Accounting in India. CPA and Management Accountant (CIMA).

4. The Weakest Link Are you frustrated with the mundane tasks for closing the periods? Are you under pressure at the end of each month? Do you have limited or no participation from your core business teams? WEAKEST You have a typical financial close process, that is the link in your business processes.

5. Month-end close is: A mundane task for every month Executed primarily by IT personnel Activity in the last weekend of each month To meet system requirements of close period Finance may use it to report results Time-consuming activity Month-end Close – Traditional View

6. Month-end practices are: Manual and/or semi-automatic Non-cohesive, uncoordinated steps not a streamlined process Highly dependent on the execution team for completeness and effectiveness Least participated by core business users Ad hoc quick fixes to resolve discrepancies and gating factors, involving compromises Month-end Close Process– Traditional View

7. Traditional Close Process Week 1 Week 4 Weeks of month Close Process Red Zone Core Business Processes Week 2 Week 1 The closing processes are disjoint steps, run outside the core business processes, in the last week of a month, with potential risk of slowing down the core processes.

8. Impacts • Close process has limited business value. • Compromises & adhoc adjustments. • Risks of partial and improper execution. • Not scalable to meet growing demands. • Time consuming activities. • Stress and extended working. • Execution without direct involvement, reducing effectivity and purpose. • Risks with staff transitions and training issues. • Non-availability of timely critical reports and information.

9. The Opportunity Give a new definition to the traditional month end financial close process. Transform it into a value added business process. Make it a process of continuous monitoring, control, automation and reporting.

10. Financial Close Process - A New Dimension • The close process cannot be restricted just to closing books; it should cover processes in all business areas - providing a means for timely execution of tasks and supporting cross- functional collaboration. • The close process should rightfully become a fully integrated business process that can provide pro-active monitoring and reporting for the actual process owners. • The close process cannot just be an activity at the end of the month. It must be carried out every day, throughout the month, integrated with the other business processes. • Month-end is to be viewed as a “milestone” to measure performance and set the ground to enforce corrective measures. So, the process should extend to areas of business that are not period bound.

11. Transformation With New Close Process Week 1 Week 4 Closing Process • Fully integrated close process. • Applicable to all areas of business, not just finance. • A continuous process of monitoring, reporting, control and improvement. • Executes throughout the month, not just at month-end – no stress in red-zone. • Value-addition with cohesive and coordinated processes. Weeks of month Red Zone Core Business Processes Closing Process Closing Process Week 2 Week 1 Closing Process

12. The Solution Month-end closing… and a holiday ??!! Sounds like a dream? Make it a reality with Vibrant iClose Automate month-end close - Effectively and efficiently !!

13. What is Vibrant iClose iClose with E-Biz Suite • Oracle E-Biz suite: the framework for executing and recording all business transactions. • iClose is seamlessly integrated with the E-Biz suite, almost like a full module, with setups and configurations to provide automated monitoring and control functionality. • iClose introduces an end-to-end workflow with fully configurable task nodes, using technology components that are already available within the Oracle E-Biz suite. • An end-to-end workflow solution with convenient extensible architecture. • Automates with configurable business rules and makes the solution tailored to each installation, without any customization requirement. • Configurable to cover all or any desired portion of business processes. • A continuous process that can be scheduled to run in background, throughout the month, with desired frequency. • Capability to define and meet cross-functional dependencies across multiple entities: organizations, operating units, legal entities and sets of books. • Power to collect information and execute processes in any module of Oracle E-Biz suite. • Capability to extend to any other systems and applications, including custom applications.

14. iClose Application Overview • Comprehensive and cohesive solution across all functional areas. • Covers requirements of business and systems processes in each area. • Extensible to cover any custom processes – including SOX governance. • Packed with several powerful features that enhance the value of the solution.

15. Vibrant iClose – Who Can Use It? Is iClose only for large companies? iClose helps large companies to automate tasks in several areas, facilitate cross functional collaboration, reduce time and man power required and streamline the flow of operations. iClose helps smaller companies to define closing as a streamlined process, not dependent on the execution team. With small businesses constrained by limited staff availability, attrition and lack of adequate knowledgeable resources, iClose helps to reduce man-power and bring consistency and stability in the process. Is iClose only for Finance Users? • iClose is a comprehensive tool, with potential to be used by any business or system user. • It is not just a tool for the Finance users or the Systems team. • The framework of the application ensures that it is easy to extend • to cover any area of the business, including any process unique to any customer. • to cover processes in any system, not just limited to the Oracle E-Biz suite. • iClose enables process owners to manage their areas of process and supports them effectively with extensive monitoring and reporting capabilities. • iClose possesses flexibility to be implemented to cover specific areas – could be specific business processes or locations or entities or a combination of them - and extend the coverage progressively in a phased manner.

16. Vibrant iClose Features Integration with E-Business Suite

17. Features: Fully Integrated with E-Biz Suite • iClose is fully integrated with the E-Business Suite and executes like an additionally module. • Solution components used are all pre-licensed with E-Business suite and no additional software is required. • iClose uses the user accounts, logins and responsibilities setup in the E-Business suite. • iClose Portal page is accessed from the navigator, like any standard application. • All the user interfaces in iClose are developed in Oracle Forms and follows the same navigation and other standards to make it seamless for users.

18. Solution Components • iClose uses purely Oracle Technology products that are already licensed as part of Oracle E=Business Suite. • Oracle Workflow • Oracle Forms • Oracle PLSQL • Self Service – Notifications & WF Status • iClose Application does not require any additional software license.

19. iClose Portal • iClose is fully integrated with Oracle Applications and serves as a module by itself – all from this single portal page. • The Tree on the left panel shows the iClose Navigation Options. • Users can directly navigate to any form by expanding the tree and clicking on the option. • The Navigation Tree honors the standard menu exclusions done at responsibility level. • The right panel shows three summary screens • Entity Status Summary – showing key entities and their close statuses. • Current Pending Areas – showing summary of key processes that are under process and not completed. • Notification – Notifications that are open to the specific user – both FYI & requiring response.

20. Vibrant iClose iClose Workflow

21. Features: Comprehensive Workflow • iClose executes the whole close process using a comprehensive workflow process. • iClose uses Oracle Workflow technology, that is embedded within the E-Business suite. • Users are provided full visibility of the processes, making it completely business friendly. • The workflow technology provides users with flexibility to re-design processes without customizations. • Workflow Status monitor and Status Diagrams provide clear information to the user about the status and details of each execution.

22. iClose Main Workflow • iClose uses a comprehensive workflow as the main process for execution. • The workflow includes over 150 sub processes and over 700 pre-defined nodes. • The processes across different modules and different entities are made to run simultaneously, taking into account cross functional dependencies. • The workflow starts executing from the first step every time and executes each node based on frequency setup, dependency check etc.

23. iClose Sub-Processes • The main workflow process launches the sub-process that executes processes/ activities specific to each business area or module. • Simultaneously several processes can be run, one for each Sets of Books/ Operating Units and Inventory Organizations, that are configured to use iClose processes. • Processes are launched for each open period. iClose provides flexibility to handle closing processes of previous period, while handling a different set of processes for the newly opened period.

24. Vibrant iClose Workflow Enhancement & Management

25. Workflow Enhancements • iClose is designed to harness the power of Oracle Workflow. • iClose provides configurable options with User Interfaces that help to enhance the functionality greatly. Workflow Enhancements • Selection of applicable processes and nodes for execution. • Configure to selectively run processes for specific organizations, operating units and sets of books. • Define frequency of execution for each process/node with flexibility to run more frequently towards close. • Define cross functional pre-requisites – across entities, across processes and across periods. • Define user subscription for each node. • Facility to override execution frequency & user subscription, for specific nodes, for selected entities and periods.

26. Selection of Processes/Nodes • iClose reads the workflow definitions and automatically shows the processes and nodes for user to configure. • Nodes are the individual steps or activities. • Processes are a logical combination of activities. A process can have any number of sub-processes with their own nodes. • Using the iClose Process Form and iClose Node Form, users can select the processes and nodes that are suited for execution. • By flagging a node or process with iClose Automation = N, the node or process will not execute, though present as part of the seeded iClose workflow process. • Every execution of the workflow automatically checks for updates and synchs up the iClose tables for workflow changes. Processes Nodes

27. Define Cross Functional Dependencies • Users can define pre-requisites both at Process and Node level. • The pre-requisite can be: • One or more different nodes/processes – in any business area. • Same node/process for a different period. • Same node/process for a different entity for same/different period. Process Level Definition Node Level Definition • Dependency has two possible actions • Do not start • Do not Complete • Provides flexibility to keep executing dependent processes, but not complete them unless pre-requisite is completed.

28. Flexible Frequency of Execution • It is a common business requirement that each activity may be required to be executed with different frequency during the month. • Out of box workflow process would execute every node in each run. • iClose introduces the capability to pre-set frequency of execution for each process and node. • Multiple frequency can be set for each node. • Flexible frequencies tied to the period are available – Monthly Once, Specific Dates, Start of Month, Last day of Month, Week Day, Daily, Always, Daily after Month End and Always after month end. Process Level Frequency Node Level Frequency Frequency defined at the Node and Process Levels can be over-ridden for a specific period, if required.

29. Configurable User Notification Subscription • iClose execution is driven by business rules, which includes definition of exceptions. • The subscription flexibility allows actual business to be directly notified for actionable business exceptions. • Notification set up for a process is used for all nodes. • Override can be made for a specific node. • Notification can be for a specific entity or can be set up as Common. • If setup as common, user will be notified for all entities. • Subscription can be changed for specific period during run time. Process Level Notification Subscription Node Level Notification Subscription

30. Synch Up • iClose leverages the following setups within Core Oracle Applications, which are considered the foundation data: • Sets of Books • FA Corporate, Tax and budget books • Application Modules • Legal Entities • Operating Unit • Inventory Organizations • Users can choose which specific sets of books or operating units or organizations should use iClose. • They can define the Start Period and optionally a period for suspension of automation, if required.

31. Select Entities for iClose • Each application has an entity level – like Work in Process is tied to Inventory Org level while Payables is tied to the Operating unit. • iClose Entity is a unique combination of an Application Module and its relevant business entity – sets of books, legal entity, operating unit or Inventory organization. • Execution of all processes are centered around the iClose Entities. The Entities form allows flexibility to users to select Entities that are to be covered by the iClose processes. Users can set effective start period for each entity, can suspend entities for specific period or even end date processing for the entities.

32. Vibrant iClose Configurable Workflow Nodes & Business Rules to Drive

33. Feature – Fully Configurable Workflow Nodes • A key feature in iClose is the flexibility to provide definition to the workflow nodes, using business-user friendly forms. • The SQL that requires execution is exposed to the users – for visibility, configurability & adaptability. • Rules are derived from the SQL that is attached. • Business users can easily review and define rules and exceptions specific to their areas. • Changes can be done easily, using the forms, with out the need for any code deployment. • Any extensions to the workflow can be managed using the same framework. • iClose uses Oracle’s security framework. It enhances the security with flexible security rules that can be defined by the users.

34. Define Business Objects iClose uses business objects for users to provide definitions used in workflow nodes. The user is provided with full visibility and flexibility to adapt the seeded nodes or define new nodes.

35. Define Business Rules – Option 1 Business users can define multiple rules and configure the conditions and the actions to be taken for each kind of exception. Multiple actions can be specified to meet the business requirements.

36. Define Business Rules – Option 2 Business users can classify critical conditions as Business Exceptions and configure notification action with response. The workflow process will not set the node with complete status till the exception is resolved.

37. Define Notification with Response Notifications – both FYI and Requiring Response – can be defined with appropriate information. Users can also define or maintain values that are to be used when providing the response.

38. Enhanced Security • iClose uses the out-of-box standard security features - user login, access, responsibility, menus and menu exclusions. • iClose allows definition of various granular security rules linking security to key business values. • Rules can be associated to form functions and tied to Responsibilities. • iClose also provides option to honor Org Access and Operating Unit restrictions by responsibility.

39. Vibrant iClose iClose Execution Management

40. iClose Execution • iClose Scheduler allows users to define the frequency at which the workflow process needs to run. • Execution happens through out the month, for all processes, across all entities and open periods. • Except for the current workflow being executed, there will be no pending workflow processes – active or deferred. • In each execution, the workflow is forced to traverse through the full process and gets completed suitably updating the back end control tables. • Concurrent programs are executed – processes, out of box reports, custom reports – as part of node execution and outputs are automatically archived.

41. iClose Request Scheduler • iClose is a workflow program, run in the background as a Concurrent Program. • iClose Request Scheduler provides option to set a predefined schedule for execution. • Option for scheduling includes: • Period from start of month • Calendar Dates • Day of the Week • For each option, user can specify different frequency types: • Every X Minutes • Specific Times • The scheduler is more powerful than the standard scheduling via Standard Report Submission Screen: • Schedule can be dynamically tied to the period close and the close status, to run more frequently, during last days before close and after last date, if not closed. • Flexibility to specify multiple flexible schedules for each day. • Flexibility to change as required. • Flexible to preview scheduled times over a period of days.

42. iClose Execution History • iClose Execution History tracks all the execution of the iClose Processes. • iClose has a unique process to manage Workflow Execution – the Main process is allowed to traverse through the whole process and terminates at the end of every execution. • Every new execution evaluates previous execution, repeats ones to be repeated, skip ones not required and execute the rest of the nodes. • At any point in time, there will be only one iClose Program under execution. • Architecture designed not to allow multiple pending Workflow Processes. • The Execution History shows summary of three statuses • Process Status – shows status of the iClose Program – whether completed or in Progress. • Close Status – shows a consolidated view of the status of all entities • Closed = All are closed • Open = All are Open • Mixed = Some are Closed and some are Open. • Entities Pending Count – gives a count of the number of entities that are not Closed.

43. Monthly Status of Entities • Provides a summary view of the close status of all entities in the system, for each period for which iClose process is run. • It helps to identify entities that may be holding up the period close process. • It also shows entities that are ready to close, where user can initiate steps or process to close out the period. • User can change status to Suspended and stop running iClose process for that entity during the month.

44. Monthly Process Control • Monthly Process Control Form provides: • Visibility of status of various processes for each entity and for each period. • Allows users to identify the hold ups due to pre-requisites. • Allows users to handle road-blocks by managing the processing status.

45. Monthly Node Control • Node Control Form provides a comprehensive view of the Node for each entity, for each period. • Both Current Run Status and Process Status are updated during each workflow execution. • The form shows status of the node and also the status of its pre-requisites. • It allows users to manage the nodes, to clear dependencies and also maintain status of nodes, to clear road-blocks.

46. Status Monitor • iClose workflow execution can be tracked using the Out of Box Status Monitor Web screen. • The screen shows details of all key workflow processes submitted. • Child workflow processes can be identified and related to the main process by the WF Item Key field.

47. Workflow Execution Diagram • The Status Diagram page provides the following benefits: • Clear graphical view of execution path. • Clear identification of pending processes and also road blocks for completion. • Drill down capability to go from the main process to any child level processes. • It is out-of-box standard Oracle web page, available as part of Self Service for Workflow.

48. Node Reports • Node Report is a comprehensive single form, that allows users to review details of exceptions associated with each node. • The form shows the various nodes that have exception raised, during the latest execution of the flow and any unresolved ones from the earlier runs. • Exceptions presented are based on the rules set up for each object, configurable by the user. • Users can review all exceptions or can select specific one in the right panel.

49. Vibrant iClose Automated Reconciliation

50. Automated Reconciliation Process Publish Result Identify Summary Define Formula Build Summary Apply Formula Derive Result • iClose provides streamlined processes for handling the reconciliation. • Each area of reconciliation is mapped as a configurable process with in the workflow. • Nodes defined in workflow execute the steps within the process, and collect relevant data for reconciliation. • An automated report provides details of the reconciliation. • iClose covers two types of reconciliation – within the subsidiary modules and also between subsidiary modules and GL.