1. Venkat Natarajan Sr. Applications Manager Rambus Inc. www.rambus.com
NorCal OAUG Training Day 2007
Maximize Returns from Oracle Internet Expenses by enabling Corporate Credit Cards
Venkat Natarajan
Sr. Applications Manager
Rambus Inc.
Himani Shah
Senior Consultant
Ubex Corporation
17th January 2007

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

3. 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 : ~$165M (2005)
Employees : 400 approx
Visit for more information

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

5. 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

6. 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

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

8. 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

9. Corporate Credit Solution
Receive corporate credit card
Sign credit card policy
Business expenses
Submit expense report
Pay by credit card

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

11. 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

12. 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

13. 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

14. Benefits - others HR IT/Finance
Provide corporate credit cards as a perk for employees
IT/Finance
Scalable process

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

16. Corporate Credit Card Process
Employees are notified to submit expense report
Employees use credit card
Transactions downloaded from bank and uploaded to Oracle daily
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

17. 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 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 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.

18. Expense Report Creation

23. 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.

24. Oracle Standard functionality
Transaction loader programs
Standard 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 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

25. 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.

26. 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

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

28. 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

29. 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

30. 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 employee’s department
Summarizes amounts by the GL code combination.
Report output loads in to Oracle GL via ADI
Speeds up expense accrual at month

31. Tips Functional Technical 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

32. 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.

33. About Ubex
Ubex Corporation is a premier provider of end-to-end solutions based on Oracle Applications
Ubex is an Oracle Certified Partner
Visit for more information

34. 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)

35. Contact Information
Venkat Natarajan
Himani Shah

36. Q & A