NorCal OAUG Training Day 2007

Maximize Returns from Oracle Internet Expenses by enabling Corporate Credit Cards
Venkat Natarajan Sr. Applications Manager Rambus Inc. www.rambus.com
17th January 2007

Himani Shah Senior Consultant Ubex Corporation www.ubex.com

Agenda
Introduction Background Solution Benefits Credit Card Process Oracle Functionality Implementation Tips Summary Q&A
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About Rambus
Rambus is one of the world's premier technology licensing companies specializing in the invention and design of high-speed chip interfaces. Revenues Employees : ~$165M (2005) : 400 approx

Visit www.rambus.com for more information

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Agenda
Introduction Background Solution Benefits Credit Card Process Oracle Functionality Implementation Tips Summary Q&A
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Business Scenario
Oracle Internet Expenses module used only for out of pocket expenses
Employees created expense reports online Employees submitted receipts to AP Expense report sent online for manager approval AP verified receipts & reimbursed employee

Corporate credit cards issued to Senior executives (less than 10) Approval, Accounting and Reconciliation of credit card expenses done manually
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Challenges
No systematic and/or scalable business processes for existing corporate credit cards expenses
Expense reporting and approval for credit card expenses was manual (on paper) Accounting & reconciliation was manual very time consuming during period end

Cumbersome process for ad-hoc purchases and travel expenses

Employees/admins had to bear upfront out-of-pocket expenses for company purchases Misc/Urgent purchases were processed via Purchase requisition. Small value expense reimbursement was a hassle
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Agenda
Introduction Background Solution Benefits Credit Card Process Oracle Functionality Implementation Tips Summary Q&A
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Solution
Implement Corporate Credit Cards in Oracle Internet Expenses
Upload credit card transactions data file from credit card provider to Oracle Process all credit card transactions via expense reports using Oracle standard functionality

Issue Corporate Credit Cards to employees for business expenses

Corporate Credit Solution

Sign credit card policy

Receive corporate credit card

Business expenses

Submit expense report

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Pay by credit card

Agenda
Introduction Background Solution Benefits Credit Card Process Oracle Functionality Implementation Tips Summary Q&A
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Benefits Simplify Expense Reporting

Do not bear upfront out of pocket charges for company expenses by using credit card Save the hassle of collecting and submitting paper receipts for credit card expenses Easily create expense report by selecting credit card transactions Enter credit and cash expenses in the same report Company does not need to provide cash advances to employees for business & travel expenses
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Benefits Reduce AP Overheads

Eliminate the paperwork of receipt submission for credit card expenses since the credit card statement serves as a receipt Eliminate the process of verifying and filing receipts Increase accounting accuracy (accounting flows directly from the online expense reports) Enable efficient accrual of expenses as expense transactions are loaded into the ERP system automatically within few days Enable efficient reconciliation of credit card statement Reduce the number of cash expense reports
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Benefits - Tighten Internal Controls

Enforce online approval of credit card expenses Enforce expense policy Audit expenses online Report and drill down on all expense transactions (cash & credit) for easy expense analysis and management reporting Capture expenses as soon as data is received from the credit card provider, thus making the financial statements more accurate Review detailed transaction information in the expense report e.g. flight details for airline tickets like flight numbers, dates, starting and ending location
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Benefits - others
HR
Provide corporate credit cards as a perk for employees

IT/Finance
Scalable process

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Agenda
Introduction Background Solution Benefits Credit Card Process Oracle Functionality Implementation Tips Summary Q&A
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Corporate Credit Card Process

Employees use credit card

Transactions downloaded from bank and uploaded to Oracle daily

Employees are notified to submit expense report

AP reconciles credit card statement at month end and settles payments*

Manager approves the expenses

Employees create expense report and submit for approval

* Method depends on payment options setup

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Corporate Credit Card Process

Employees use credit cards for business expenses at various merchants The merchant posts the transactions to the credit card provider A daily automatic interface downloads expense transactions from the credit card provider and uploads into Internet Expenses Employees are notified by email to submit expense reports when new transactions are available (via standard concurrent program) Employees create their expense reports by reviewing the transactions The expense report goes to the employees manager for approval. At month end, AP reconciles the credit card statement and settles the payments with the credit card provider / employee. Reconciliation is easy since all the credit card transactions are loaded into the system on daily basis.
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Expense Report Creation

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Credit Card Setup Options

Company Pay option The company pays the credit card
provider for all expenses charged on the credit cards. Any personal employee expenses are offset against the cash expenses or need to be reimbursed by the employee to the company

Individual Pay option The employees are responsible for

paying the entire credit card bill. They are reimbursed by the company for the business expenses based on the expense reports

Both Pay option The employees pay the credit card

provider for the personal expenses and the company pays the credit card provider for business expenses
Tip : Please note that all credit card providers do not support all of the above options for their corporate credit card products. Please ensure that you select a credit card provider that supports the option that you wish to implement. Accounting and processing are different for the above options. Please refer Internet Expenses User Guide for details.
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Oracle Standard functionality

Transaction loader programs
Standard programs available for American Express, Bank of America Visa, US Bank Visa, Visa VCF 4, MasterCard CDF3, Diners Club. Custom loader program needed for others.

Automatic credit card creation in Oracle

New credit cards are automatically created by matching credit card holder info in the transaction file to the employee name in Oracle HR.

Default expense types based on Merchant Category Codes

Map MCC codes to expense types during setup Expense types drive expense account while auto-accounting
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Oracle Standard functionality

Personal transactions
Personal transactions are accounted appropriately Employee has liability to pay

Disputed transaction
Mark transactions as disputed Track history of related communications Adjust transaction against credit provided by bank

Standard reports and escalations for outstanding transactions

Run standard reports to determine status of outstanding transactions. Concurrent programs can send escalation notifications for un-submitted expense reports.

Audit features
Audit expenses by expense type, amount, date range, employee, policy violation etc. Many options available.
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Systematic Controls
Examples of controls to manage the usage of the Corporate Credit Cards Credit limit *
Card level credit limit MCC code level e.g. Airline transactions could have a higher credit limit than Restaurant transactions

Merchant Category Codes *

Restrict the MCC codes where the credit card can be used E.g. Jewelry & pet stores could be out of scope

Justification required field

Enable a mandatory justification field for certain expense types This helps the approver and the expense report auditor verify adherence to company policy
* Check with credit card provider for offering details
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Agenda
Introduction Background Solution Benefits Credit Card Process Oracle Functionality Implementation Tips Summary Q&A
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Setups
Transaction load
Setup daily transaction load with credit card provider Setup ftp site Handle file encryption

Define Profile Option set OIE:Enable Credit Card to Yes Setup Credit Card Program Define Card Policy
Transaction age limit

Setup expense type mapping

Create a payables lookup code for MCC codes Create mapping rules to map MCC codes to card expense types Assign card expense types to expense report templates

Testing obtain dummy transaction files from your credit card provider for testing
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Standard responsibilities used

Payables Super User Internet Expenses Setup and Administration Internet Expenses Internet Expenses Auditor Internet Expenses Audit Manager Internet Expenses Help Desk Internet Expenses Reporting and Analysis

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Useful Customizations
Automated transaction loader program
Standard transaction loader program requires the file name of the transaction data file with full path as a parameter To avoid the manual load of files, a custom program reads the filename and automatically launches the Oracle standard transaction loader program

Credit cards transactions accrual report

Custom report lists the journal entry for accruing all the outstanding credit card transactions at period end Derives the natural account based on the MCC code and the cost center based on the employees department Summarizes amounts by the GL code combination. Report output loads in to Oracle GL via ADI Speeds up expense accrual at month
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Tips
Functional
Implement a corporate credit card policy Start with a pilot set of cards (up to 5) and complete 1-2 period closes Designate a Credit Card Administrator

Technical
Get the latest Internet Expenses patch sets (a lot of new functionality has been added) Test the process for details since documentation may be at a high-level The inactive employee workflow does not work if you have a shared HR installation
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Summary
Oracle Internet Expenses provides a user-friendly interface to create Expense Reports and route them for approval and reimbursement. Enabling the Corporate Credit Card functionality simplifies the Expense Reporting process further, both for your employees and your Finance department.

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About Ubex
Ubex Corporation is a premier provider of end-to-end solutions based on Oracle Applications

Ubex is an Oracle Certified Partner Visit www.ubex.com for more information

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Other Ubex Events Today

Ubex Booth
Visit Booth # 14 today Enter for a chance to win a Nintendo Wii !!!

Other Ubex Presentations

Credit Management - An easy solution for evaluating customer creditworthiness (Room 212 at 11:15 AM)

AME (Approvals Management Engine) with iProcurement A better solution (Room 207 at 1:30 PM)
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Contact Information
Venkat Natarajan venkat_natarajan@rambus.com Himani Shah himani.shah@ubex.com

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Q&A

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