1Venkat Natarajan Sr. Applications Manager Rambus Inc. www.rambus.com NorCal OAUG Training Day 2007Maximize Returns from Oracle Internet Expenses by enabling Corporate Credit CardsVenkat NatarajanSr. Applications ManagerRambus Inc.Himani ShahSenior ConsultantUbex Corporation17th January 2007
2Agenda Introduction Background Solution Benefits Credit Card Process Oracle FunctionalityImplementationTipsSummaryQ&A
3About RambusRambus is one of the world's premier technology licensing companies specializing in the invention and design of high-speed chip interfaces.Revenues : ~$165M (2005)Employees : 400 approxVisit for more information
4Agenda Introduction Background Solution Benefits Credit Card Process Oracle FunctionalityImplementationTipsSummaryQ&A
5Business ScenarioOracle Internet Expenses module used only for out of pocket expensesEmployees created expense reports onlineEmployees submitted receipts to APExpense report sent online for manager approvalAP verified receipts & reimbursed employeeCorporate credit cards issued to Senior executives (less than 10)Approval, Accounting and Reconciliation of credit card expenses done manually
6ChallengesNo systematic and/or scalable business processes for existing corporate credit cards expensesExpense reporting and approval for credit card expenses was manual (on paper)Accounting & reconciliation was manual – very time consuming during period endCumbersome process for ad-hoc purchases and travel expensesEmployees/admins had to bear upfront out-of-pocket expenses for company purchasesMisc/Urgent purchases were processed via Purchase requisition.Small value expense reimbursement was a hassle
7Agenda Introduction Background Solution Benefits Credit Card Process Oracle FunctionalityImplementationTipsSummaryQ&A
8Solution Implement Corporate Credit Cards in Oracle Internet Expenses Upload credit card transactions data file from credit card provider to OracleProcess all credit card transactions via expense reports using Oracle standard functionalityIssue Corporate Credit Cards to employees for business expenses
10Agenda Introduction Background Solution Benefits Credit Card Process Oracle FunctionalityImplementationTipsSummaryQ&A
11Benefits – Simplify Expense Reporting Do not bear upfront out of pocket charges for company expenses by using credit cardSave the hassle of collecting and submitting paper receipts for credit card expensesEasily create expense report by selecting credit card transactionsEnter credit and cash expenses in the same reportCompany does not need to provide cash advances to employees for business & travel expenses
12Benefits – Reduce AP Overheads Eliminate the paperwork of receipt submission for credit card expenses since the credit card statement serves as a receiptEliminate the process of verifying and filing receiptsIncrease 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 daysEnable efficient reconciliation of credit card statementReduce the number of cash expense reports
13Benefits - Tighten Internal Controls Enforce online approval of credit card expensesEnforce expense policyAudit expenses onlineReport and drill down on all expense transactions (cash & credit) for easy expense analysis and management reportingCapture expenses as soon as data is received from the credit card provider, thus making the financial statements more accurateReview detailed transaction information in the expense report – e.g. flight details for airline tickets like flight numbers, dates, starting and ending location
14Benefits - others HR IT/Finance Provide corporate credit cards as a perk for employeesIT/FinanceScalable process
15Agenda Introduction Background Solution Benefits Credit Card Process Oracle FunctionalityImplementationTipsSummaryQ&A
16Corporate Credit Card Process Employees are notified to submit expense reportEmployees use credit cardTransactions downloaded from bank and uploaded to Oracle dailyAP reconciles credit card statement at month end and settles payments*Manager approves the expensesEmployees create expense report and submit for approval* Method depends on payment options setup
17Corporate Credit Card Process Employees use credit cards for business expenses at various merchantsThe merchant posts the transactions to the credit card providerA daily automatic interface downloads expense transactions from the credit card provider and uploads into Internet ExpensesEmployees are notified by to submit expense reports when new transactions are available (via standard concurrent program)Employees create their expense reports by reviewing the transactionsThe expense report goes to the employee’s 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.
23Credit 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 companyIndividual 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 reportsBoth Pay option – The employees pay the credit card provider for the personal expenses and the company pays the credit card provider for business expensesTip : 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.
24Oracle Standard functionality Transaction loader programsStandard programs available for American Express, Bank of America Visa, US Bank Visa, Visa VCF 4, MasterCard CDF3, Diner’s Club. Custom loader program needed for others.Automatic credit card creation in OracleNew 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 CodesMap MCC codes to expense types during setupExpense types drive expense account while auto-accounting
25Oracle Standard functionality Personal transactionsPersonal transactions are accounted appropriatelyEmployee has liability to payDisputed transactionMark transactions as disputedTrack history of related communicationsAdjust transaction against credit provided by bankStandard reports and escalations for outstanding transactionsRun standard reports to determine status of outstanding transactions. Concurrent programs can send escalation notifications for un-submitted expense reports.Audit featuresAudit expenses by expense type, amount, date range, employee, policy violation etc. Many options available.
26Systematic ControlsExamples of controls to manage the usage of the Corporate Credit CardsCredit limit *Card level credit limitMCC code level – e.g. Airline transactions could have a higher credit limit than Restaurant transactionsMerchant Category Codes *Restrict the MCC codes where the credit card can be usedE.g. Jewelry & pet stores could be out of scopeJustification required fieldEnable a mandatory justification field for certain expense typesThis helps the approver and the expense report auditor verify adherence to company policy* Check with credit card provider for offering details
27Agenda Introduction Background Solution Benefits Credit Card Process Oracle FunctionalityImplementationTipsSummaryQ&A
28Setups Transaction load Setup daily transaction load with credit card providerSetup ftp siteHandle file encryptionDefine Profile Option – set OIE:Enable Credit Card to YesSetup Credit Card ProgramDefine Card PolicyTransaction age limitSetup expense type mappingCreate a payables lookup code for MCC codesCreate mapping rules to map MCC codes to card expense typesAssign card expense types to expense report templatesTesting – obtain dummy transaction files from your credit card provider for testing
29Standard responsibilities used Payables Super UserInternet Expenses Setup and AdministrationInternet ExpensesInternet Expenses AuditorInternet Expenses Audit ManagerInternet Expenses Help DeskInternet Expenses Reporting and Analysis
30Useful Customizations Automated transaction loader programStandard transaction loader program requires the file name of the transaction data file with full path as a parameterTo avoid the manual load of files, a custom program reads the filename and automatically launches the Oracle standard transaction loader programCredit cards transactions accrual reportCustom report lists the journal entry for accruing all the outstanding credit card transactions at period endDerives the natural account based on the MCC code and the cost center based on the employee’s departmentSummarizes amounts by the GL code combination.Report output loads in to Oracle GL via ADISpeeds up expense accrual at month
31Tips Functional Technical Implement a corporate credit card policy Start with a pilot set of cards (up to 5) and complete 1-2 period closesDesignate a Credit Card AdministratorTechnicalGet 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-levelThe inactive employee workflow does not work if you have a shared HR installation
32SummaryOracle 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.
33About UbexUbex Corporation is a premier provider of end-to-end solutions based on Oracle ApplicationsUbex is an Oracle Certified PartnerVisit for more information
34Other Ubex Events Today Ubex BoothVisit Booth # 14 todayEnter for a chance to win a Nintendo Wii !!!Other Ubex PresentationsCredit 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)