1. Agenda Introduction History of Oracle Treasury
The Best Practices Journey
Cash Pooling
Intercompany Netting
P-card Processing
Global Treasury/ Banking Integration
Best Practices in Treasury
Getting Started …
HCL Technologies offices in India
Operates 34 offices in 16 countries
Headquarters in Sunnyvale, California

2. Paul Kirch: Director, Oracle Applications Consulting, Answerthink
Currently, a Director in Answerthink’s Oracle Consulting Practice, with responsibility for consulting implementation on the West Coast
More than 20 years experience in the implementation of ERP systems, principally in Finance, Global Supply Chain, and Distribution
MBA in International Finance, CPA (licensed in the State of Maryland)
CFA (Certified Financial Analyst) candidate, Level I, June, 2007
Worked for Oracle Corporation in the period , first as a Sales Consultant in Latin America and later as a Practice Manager in the Oracle One international consulting group
Have worked on treasury systems design, including many of the problems related to integration, at KLA-Tencor, FEI Company, Cisco, and Qualcomm
HCL Technologies offices in India
Operates 34 offices in 16 countries
Headquarters in Sunnyvale, California

3. The Best Practices Journey
Finance Functions to be Centralized
Financial Shared Service Center
Collections
Payments
AR/AP Admin
Centralized Treasury
Cash balances management
Money market operations
Currency Pools
Intercompany funding
FX and interest rate management
Intercompany netting
Partially Centralized Treasury
Decentralized Treasury
Long term funding
Degree of Centralization

4. Best Practice: Cash Pooling
Automated Balance Transfer
for Intercompany
Sweeps
Best Practice: Cash Pooling
R Europe Entity [TBD]
USD Account, Current (OD)
[ABN AMRO Amsterdam]
OFF-SHORE USD ACCOUNTS in Hong Kong
R FEI HK Company
ASIA Net USD Position
Master USD Account
Current (OD) 1
AUTOMATED USD NOTIONAL POOL 2
NR Japan
USD
Current
(OD)
R Hong Kong
USD
Current
(OD)
HKD
Savings
(No OD)
Current FX
NR Singapore
USD
Current
(OD) FX
R Singapore
SGD
Savings
(No OD)
Current
R Taiwan
TWD
DDA/Savings
(No OD)
Current
(OD)
NR Taiwan
USD
Current FX
Operational Expenses
R China
CNY
Current
(No OD “ST-Loan”) FX
R Malaysia
MYR
Current
(OD)
No Savgs allowed FX
R Thailand
THB
Savings
(No OD)
Current
(OD) FX
ON-SHORE LOCAL CURRENCY ACCOUNTS
Payables
Receivables
R: Resident entity
NR: Non-Resident entity FX
FX (Spot/Fwd/Option) available on/offshore, per regulation FX
FX (Spot/Fwd/Option) available onshore only, per regulation

5. Best Practice: Intercompany Netting (1 of 3)
“A process by which the inter-group payables of each participating group member are settled, on predetermined dates, by effecting one transfer, in the functional currency of each participant, to or from a corporate netting centre (“CNC”)
Settlement of intercompany obligations (3rd parties can be included)
Pre-determined calendar
Payable or receivable
One amount
One currency

6. Trade Flows before Netting (2 of 3)
PARENT
COMPANY
230K
200K
200K
100K
Eindoven
400K
200K
400K
200K
150K
120K
220K
50K
100K
500K
100K
France
100K
200K
600K
100K
Czech Republic
United States

7. Trade Flows After Netting (3 of 3)
Simple Example
75% Reduction of Transactions
31% Reduction in Volume
PARENT
COMPANY
Eindoven
470K
230K
France
430K
NETTING CENTRE
970K
700K
Czech Republic
United States

8. Best Practice: P-card Processing
Goods delivered
Request (PR)
ERP System
Bank Statement
Monthly Statement
Charges submitted to bank and approved.
Bank
Statement
Statement
Lines
Reconciliation

9. Best Practice: Integration between ERP and Global Banking Platform
Global Payments Platform
GlobalGateway
Hub
LATAM Hub
NA Hub
ASPAC Hub
LOCAL
CLEARING
EMEA hub
Branch
Partner Bank A
ERP System User
Global Treasury
Customer
Regional
Local
ERP Treasury User
Partner Bank Z

10. Best Practices in Treasury
Consolidation to 1 or 2 banks – globally; reduction in the number and location of bank accounts; centralization of Treasury function
Better use of cash through use of sweep accounts, cash pooling, and netting of intercompany transactions
Greater transactional efficiencies including the use of electronic links to external banking partners and markets and increased use of EDI/EFT for cash receipts and cash disbursements
Increased use of P-cards and Ghost Cards for low dollar transaction processing
Tighter integration between banking web based portals/ global payments platforms and ERP-based Treasury management systems
Straight-through-Processing (STP) of Treasury Transactions (automated confirmation , accounting, and payment scheduling)
Improved information management and reporting including foreign currency exposure, daily cash position, and cash flow forecasting

11. Getting Started …
Recognize that Oracle treasury setup heavily dependent upon company banking relationships and that Oracle Treasury configuration MUST reflect current company banking relationships
Begin best practices journey by:
adopting global, web based cash management solution
seek to more fully integrate Oracle to back-end bank processing platform
net intercompany transactions and replace intercompany cash movements with weekly/monthly/quarterly USD movements
increase use of bank services, such as P-card transaction processing
adopt centralized treasury/centralized disbursements processing (AP shared services) with 70% or more of dollars disbursed electronically

12. Copyright © 2006 Answerthink, Inc.. All rights reserved.
Contact Information
Paul Kirch
Director, Oracle Applications Consulting
Hackett Certified Advisor
Answerthink, Inc.
Telephone: (408)
Statement of Confidentiality
This document contains confidential material proprietary to Answerthink, Inc.. The materials, ideas and concepts contained herein are to be used exclusively to evaluate the capabilities of Answerthink to provide value-added assistance to The Williams Company. This information and the ideas herein may not be disclosed, copied or distributed to anyone outside of The Williams Company Industries or be used for purposes other than the evaluation of Answerthink’s capabilities on this particular engagement
Copyright © 2006 Answerthink, Inc.. All rights reserved.