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Session ID:

Prepared by:

Utilizing EBS to Streamline Chargebacks for Internally Provided ServicesA Public Sector Case Study

10216

Kirsten Keller Corrice, Arlington Public Schools

@KirstenPSUEBS

April 2-6, 2017 in Las Vegas, NV USA #C17LV

Agenda

• Introduction

• Challenges with manual internal chargeback process

• Goals to streamline process

• Review standard EBS functionality leveraged in process

• Configurations needed to implement solution

• Key benefits and managing change

• Q&A

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Introduction


Kirsten Keller Corrice

• Oracle e-Business Suite (EBS) functional lead and consultant, Big 4 consulting experience

• Over 14 years’ experience implementing, upgrading, and enhancing EBS for public sector organizations across the US

• Expertise in EBS Financials and application security/segregation of duties

• Certified PMP by Project Management Institute

• Currently support all aspects of EBS Financials for Arlington Public Schools, Virginia

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Arlington Public Schools

• Located in Arlington, Virginia across the Potomac River from Washington, DC

• 33 schools and programs, 9 departments

• 27,000+ enrolled students hail from 96 nations and speak 81 languages

• 4,000+ full time employees

• Oracle e-Business Suite – Finance & HR, R12.1.3• GL, AP, AR, CM, iExp, PO, iProc, iSupplier (on hold), SLA

• Questica Budget Software for budget development

• www.apsva.us

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http://www.apsva.us/

Challenges with Internal ChargebacksPrint Shop Chargebacks


Challenges with Internal Chargebacks

• Arlington Public Schools’ Print Shop• Provides internal service - printing

• Prints everything for school system except high end items like business cards and letterhead

• Official school publications, e.g. Annual Budget Book, forms, training materials, posters…

• Print shop absorbs cost of supplies up front

• After completion of print job, submits request for reimbursement to Finance

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• Print shop chargeback process mostly manual, paper intensive

• No software is used to record print jobs

• Print shop manually records print job• Orders submitted by phone,

email or in-person• Order recorded on paper log• Upon completion cost manually

calculated on paper• Order details typed into word

document “receipt”, printed and cut in half; sent to Finance and customer

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• Finance office manually records journal entry• Finance receives paper receipts via interoffice mail

• Finance keys in charge account, cost, order description in journal form or Web ADI spreadsheet• Debit the school/program account

• Credit the print shop “chargeback” account

• Average 28 journals and 1500 journal lines a year

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Enter Journal:

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• Manual Reporting• Paper and other materials used recorded manually on

chargeback sheet

• Each chargeback sheet manually tallied to obtain monthly totals

• Monthly totals tallied to obtain year totals

• Limited transparency

• Unable to quickly and effectively answer process questions• How much have schools spent on print jobs fiscal year-to-date?

• What is the average print shop cost?

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Goals to Streamline ProcessPrint Shop Chargebacks


Goals to Streamline Process

• Direction given to Finance staff to eliminate the paper chargeback requests• Eliminate time-consuming, manual data entry

• Reduce Finance workload due to resource cuts

• Implement solution using APS resources – software and people

• Quick turnaround time – need solution in place by July 2016

• Timelier accounting and reporting

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Goals to Streamline Process

• Where possible, utilize tools familiar to users to reduce learning curve

• Oracle EBS• Make Oracle EBS initial point of data entry

• Utilize standard EBS functionality available in Procurement suite to generate print shop costs

• Standard accounting features to eliminate manual journals

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Review Standard EBS Functionality LeveragedPrint Shop Chargebacks


Leverage Standard EBS Functionality

• New process summary• Print Shop Office

• Still receives print job requests through email, phone, or in-person

• Enter print job request into EBS iProcurement• Create requisition from Blanket Purchase Agreement

• Select Print Shop Store and select items OR enter total amount of job

• PO Automatically Created/Approved

• Receive PO after print job completed

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Create Requisition from Blanket Purchase Agreement:

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Enter Special Information and Charge Account:

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Submit Requisition:

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Enter Receipt:

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• New process summary• Finance Office

• Automatically create invoices by submitting Pay On Receipt AutoInvoice program• Utilizes Electronic Receipt Settlement (ERS) functionality

• Standard Oracle EBS functionality to streamline invoice creation

• Supplier Site enabled for ERS/Self-Billing

• Invoices automatically created after receipt entered

• Kicks off Payables Open Interface program

• Program matches receipts to purchase orders

• Validate and approve invoice batches

• Run Payment Process Request to clear invoice

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Run Pay On Receipt AutoInvoice Program:

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Validate and Approve Invoices:

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Submit Payment Process Request:

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• Invoice Accounting• Debit school/program

account

• Credit liability

• Payment Account• Cash entry credits the

print shop “chargeback” account

• Debit liability

• Intracompany balances funds

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Configurations Needed to Implement SolutionPrint Shop Chargebacks


Configurations Needed to Implement Solution• Pay Group• Payment Method• Internal

Bank/Branch/Account• Payment Process Profile• Payment Process Request

Template• Create Supplier• Create Responsibility• Set Profile Options

• Create New Content Zone• Update Existing Content

Zone• Create Local Store• Define Information Template• Setup Requisition Approval

Limits• Create Blanket Purchase

Agreement, Upload Items• Define Natural Account and

Define Intracompany Balancing Rules

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Configurations Needed to Implement Solution

• Pay Group• (N) Payables Manager –

Setup – Lookups –Purchasing

• Define new pay group to separate internal invoices from other vendor invoices

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• Payment Method• (N) Payables Manager –

Setup – Payments –Payment Administrator –Pay Methods

• Technically not issuing any payment, so define “APS Chargeback” to properly identify the payment type

• Enable for Payables

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Configurations Needed to Implement Solution• Internal Bank and Account

• (N) Payables Manager –Setup – Payment – Banks and Bank Branches/Bank Accounts

• Enable for Payables

• Cash Account – hit Print Shop Chargeback clearing expense account

• Pooled Account = N

• Allow Zero Payments = Y

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• Internal Bank and Account• (N) Payables Manager –

Setup – Payment – Banks and Bank Branches/Bank Accounts

• Add Payment Document

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• Payment Process Profile• (N) Payables Manager –

Setup – Payment –Payment Administrator –Payment Process Profile

• Define usage rules to restrict payment process to specific payment method and bank account

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• Payment Process Profile• Set Payment Instruction

Format to standard NACHA layout – no files are being transmitted

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• Payment Process Request Template• (N) Payables Manager –

Setup – Payments – Entry –Payments Manager –Templates

• Default values to streamline payment process, minimize errors

• Set Selection Criteria: payee, payment method, and pay group

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• Payment Process Request Template• Set Payment Attributes:

bank account, payment document, payment process profile

• Set Process Automation and Validation Failure Results options

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• Create Supplier• (N) Payables Manager –

Suppliers – Entry

• Address Book: Create Internal Site for Print Shop Chargeback• Enable for

Purchasing/Payables

• Enter email and set default communication method to email to email orders

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• Create Supplier• Set Supplier Site level

defaults to enable ERS Purchasing – Self Billing:• Pay On = Receipt

• Invoice Summary Level Receipt

• Create Debit Memo from RTS Transaction = Yes• Not applicable to our

process

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defaults Payment Details:• Payment Methods Add

and select Payment Method = APS Chargeback

• Payment SpecificationsPay Each Document Alone = Yes

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defaults Invoice Management:• Invoicing Invoice Match

Option = Purchase Order

• Payment Pay Group = Chargeback

• Terms Terms = Immediate

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• Create Responsibility• (N) System Administrator –

Security – Responsibility –Define

• Exclude express receive to require end user to manualyl enter receipt date

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• Set Profile Options• (N) System Administrator –

Security – Profile

• MO: Operating Unit (Responsibility level)

• PO ERS Invoice Number Prefix = ERS (default)

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• Create Local Content Zone• iProcurement Catalog

Administration – Stores –Content Zones

• Include items from specific suppliers

• Secure by responsibilities

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• Update All Local Content/Main Store Content Zone• (N) iProcurement Catalog

Administration – Stores –Content Zones

• Exclude items from specific suppliers

• Necessary to not allow other users to access print shop chargeback items

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• Create Store

• iProcurement Catalog Administration – Stores• Assign new content zone

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• Define Information Template• (N) Purchasing Superuser –

Setup – Information Templates

• Capture additional information

• Assign to unique Item Category related to chargebacks

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• Setup Requisition Approval Limits• (N) Purchasing Superuser –

Setup – Approvals –Approval Groups/Assignments

• Print Shop staff member has access to approve charges printing only

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• Define Blanket Purchase Agreement• (N) Purchasing Superuser –

Buyer Work Center –Agreements

• Load various items for print shop costs

• PO automatically created/approved upon requisition approval

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• Define Natural Account and Intracompany Balancing Rules• (N) General Ledger Superuser –

Setup – Financials – Accounting Setup Manager – Accounting Setups – Intracompany Balancing Rules

• Define new object code to represent cash clearing -chargebacks

• Define intracompany balancing rule for Payables (source) –Payments (category)

• All other APS payments (non-chargebacks) automatically balance by fund as pooled bank accounts

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Key benefits and managing changePrint Shop Chargebacks


Key Benefits and Managing Change

• Benefits• Little impact to general end user base

• Solution built using all standard oracle functionality• No development support needed, except for minor OAF extensions

• Shift workload for internal service provider (print shop)

• Data entered into software instead of onto paper

• Software validates data and pricing, minimize data entry and cost errors

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• Benefits• Reduce time previously required by Finance to enter manual

journals• Finance now runs processes in Oracle that automate the accounting

entries

• Data captured in Oracle EBS• Timelier accounting

• Single repository for all transactional data

• Better reporting and transparency into how print shop is leveraged and supplies used

• Drilldown from expense to transaction, view all transaction level details

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• Managing Change• Incorporated print shop user into design early-on in process

• Transition from 18-year manual process, limited technical skills

• Face-to-face meetings

• Prototype review

• More instruction required than anticipated

• Leverage User Productivity Kit (UPK)

• Sat with print shop user for first transaction entries

• **Made some changes to process to accommodate changes in Print Shop staff

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User Productivity Kit:

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• Managing Change• Processing schedule

• Biggest challenge ensuring transactions entered timely

• Developed a monthly schedule with date requirements

• Explained financial reporting requirements

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• Managing Change• Customization/Personalization to iProcurement screens

• Apply this Cost Allocation information to all applicable requisition lines

• Make receipt date null – no default value• Receipt date drives invoice date

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Q&ASession ID: 10216Kirsten Keller Corrice, ERP Finance Functional LeadEmail: [email protected]

mailto:[email protected]

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