Financial
Financial
Financial
Revenue
COGS
DSO
Inventory
Margins
Assets
SRM
CRM
Supply Chain Planning
ALM
EPM
Lean Manufacturing
Distribution
HCM
Financial Management
Demand-Driven Manufacturing
Solutions
EnterpriseOne Financial Management
Financial Management Integration
General Accounts Accounts Benefits of
Ledger Receivable Payable Integration
• Reduce
implementation time
Fixed Asset
Payroll
Accounting • Eliminate errors
Pre-built
associated with re-
Project Integration Procurement
Costing keying data
Management
(Job Cost)
• Lower costs
Change Contract
Management Management associated with
implementation,
maintenance, and
Advanced administration
Manufacturing Sales Order Maintenance
Cost
Accounting Management Management
Accounting
Financial Management Overview
• Centralized Entity • Customer/Supplier
Address
Definition & Maintenance Masters
Book
• Line of Business Details • Data Privacy
• Organization Structures • Budgeting/Planning
General
• Chart(s) of Accounts • Multicurrency
Ledger
• Financial Reporting • Consolidations
• Compliance
Accts Receivable Accts Payable Adv Cost Acct
• Customer Mgt • Vendor Mgt • Direct Cost
• Invoicing • Vouchers Capture
• Credit & • Payment • Indirect Cost
Collections Processing Assignments
• Netting • Bank/Cash Mgt • Profit Analysis
Organizational Structure
Companies:
Domestic Company Holding Company • Fiscal Date Pattern
• Base Currency
• Balancing Entity
New York Bicycle Chicago Bike Marketing Administrative
Supplies Warehouse Parts Warehouse Division Division
Business Units:
• Belong to a Company
Business Unit Chart of Accts • Own the Chart of Accts
Category Codes
5000 Revenues
• 30+ Category Codes for
Region Eastern 5005 Sales-Product A Grouping & Reports
Division Central 5200 Sales-Other
Product Parts 6000 Direct Costs
6010 Cost of Sales
Ledgers:
Accounts: Acct Category • Store Transactions and
Codes Balances
• Object + Subsidiary or Stat Acct 4200
Chart Fields (Flex Format) Type SG&A • Examples: Actual, Budget,
• Can Have Many Charts
Corp Acct 4210 Consolidation, Alternate
Currency, Units, etc.
• 43+ Category Codes for
Grouping & Reports
EnterpriseOne FMS Differentiators:
User Configurability Ease of Change
Category Codes Company A Company B
• Attached to all master data (Address Book,
Business Unit, Accts, Item, etc.)
• Allow users to configure purpose and values for Business Business Business
Business
reporting and ease of maintenance Unit 1 Unit 2 Unit 2 Unit 3
• Can be globally updated
EXAMPLE: Changes to regional rollup does not
require reclassification entries • Data Structure: allows for easy
reorganization (move business unit from one
Subledger company to another, change fiscal dates,
• Allows users to cross reference activity to change base or reporting currency)
something else in the system or a user defined • Account ID: users can completely revamp
value the structure or rollup of their chart of
• Provides additional dimensions without accounts without losing history
increasing chart of accounts
• Category Codes: give users a means to
• Populated manually or through subsystems
organize their data at the master level
• Can optionally be stored as GL balances
EXAMPLE: Expenses paid to a vendor can be
• Processing Options: user configurable
tracked by employee address book number rules that can be changed as needed
Accounts Payable
November
2004
Why Accounts Payable Matters
Impact of Accounts Payable
Satisfied Suppliers Hard Dollar Savings
Time-consuming
and expensive
invoice
processing
Controlling cash
flow
Complex, Supplier–Specific
Payment Terms
Complex,
supplier-specific
payment terms
2/15, net 45
Time-consuming
2/10, net 30 £
$ Checks € EFT
and expensive $
US tax codes EFT ¥
invoice Checks
EFT
processing NAFTA Bank drafts
EFT
2/10, net 30
1/10, net 60
Controlling cash
flow
Time-Consuming and Expensive Invoice
Processing
Complex,
Processing Costs per AP Invoice
supplier-specific
payment terms $8.50
Potential annual
savings of
$809,550
for a company
Time-consuming Payment processing 180,000
and expensive invoices
invoice Reconciliation
?
processing
Data Entry
Controlling cash
flow
Manual Electronic
Available cash
Time-consuming Discounts
and expensive
invoice 1/10, net 30
processing Payment due
date
flow
Amount due upon
receipt
Reconciliation
Accounts Payable Opportunities
JD Edwards EnterpriseOne
Accounts Payable Results
Strengthen Supplier • Improve supplier
Relationships responsiveness
Paper
• Incorporate currency
EFT
Check and language
preferences
Bank
Cash
Draft
Bank • Pay each supplier
Draft uniquely
• Improve supplier
relationships
Strengthen Supplier Relationships
2. Honor unique supplier terms and conditions
Notes: Monthly prepayments Notes: Payment to parent account • Build and maintain
efficient, personalized
Supplier C Supplier D supplier partnerships
Billing Address: New York, NY Billing Address: London, UK
Benefits of supplier
Supplier name self-service:
Benefits of
proactive
examination:
• Quickly resolve and
reduce confusion
surrounding
duplicate invoices
• Improve monitoring
and control
• Help prevent future
duplicate payments
EnterpriseOne Accounts
Payable Benefit
Manage Cash Effectively
Discount no
Benefits of
Pay later
offered? considering multiple
variables:
yes
• Take maximum
Balance > $5000
Forward
Pay later advantage of supplier
discounts
< $5000 • Support effective cash
management
Cash on no
hand?
Pay later • Meet suppliers’ terms
and conditions
yes
Pay now
Manage Cash Effectively
2. Customize control and payment of each invoice
Benefits of real-time
Supplier transaction history: information:
Credit Risk
• Evaluate credit worthiness rapidly
• Establish appropriate credit limits
Accounts Receivable Challenges
Complex,
customer-specific
processing
requirements
Time-consuming
and inaccurate
invoice, receipt,
and deduction
processing
Ineffective credit
extension and
cash flow policies
Complex, customer–specific processing
Complex,
requirements
customer-specific
processing
requirements EFT
£
CAN$ 2/10, net 30
Ineffective credit
extension and
cash flow policies
Time Consuming and Inaccurate
Complex, Invoice Processing
customer-specific
processing Average Cost Average Time
requirements to Process to Process
Manual Invoice Manual Invoice
Time-consuming 15 minutes
and inaccurate
invoice, receipt, $12.25
6 minutes
and deduction $6
processing
? ?
Ineffective credit Manual Automated Manual Automated
extension and
cash flow policies
Ineffective use of credit and cash flow
Complex,
customer-specific
processing Can you effectively balance
requirements cash flow and credit risk?
Cash Flow:
• Collection
Time-consuming efforts?
and inaccurate • Account
aging?
invoice, receipt, • Recognition
and deduction of receipt?
Benefits of AR/AP
netting:
• Improve efficiency of
AR/AP netting
Toggle between AR and
AP tabs for instant process
access across
departments • Provide visibility into
critical financial data
• Allow accurate bank
account data via a
single interface
Capture real-time
AR information Benefits of real-time
information:
Customer Classification
Benefits of user-
Platinum Gold Silver defined policies:
Credit limit $1,000,000 $500,000 $250,000 • Recognize and treat
important customers
Payment due 60 days 45 days 30 days in timely and
appropriate manner
Delinquent 75 50 30
notes sent at
• Reflect customer
days days days
status with
appropriate customer
Delinquent
service level
fees 100 60 45
applicable days days days
after
Balance Cash Flow and Credit Risk
3. Accelerate collection efforts
T&E
Indirect
Spending
Time-consuming
and expensive
manual
processing
Ineffective
preferred supplier
contracts
Inaccuracy Caused by Errors
Inaccurate and
uncontrolled Unintentional Intentional
expenditures Errors Errors
User error Fictitious entry
Time-consuming
and expensive Late or missing receipts Mischaracterization
manual
processing Data entry error Overstated expenses
Ineffective
preferred supplier
contracts
preferred supplier
contracts
manual HRMS
processing Enterprise
Applications
Enforceability Negotiations
Ineffective
preferred supplier Negotiations
Enforceability
contracts • Based on accurate,
• Expenses made under
consolidated data?
contracts?
• Best possible contracts
• Reasons for exceptions?
negotiated?
Expense Management
Opportunities
EnterpriseOne Expense
Management Results
Improve Accuracy and • Adhere to
Control of Employee corporate policies
Reimbursements • Reduce fraud
Benefits of Flexible
Setup
• Configure expense
rules to support your
company
reimbursement policy
• Establish multiple
rules to support
different tracking,
managing, and
reporting criteria
Improved Accuracy and Control of
Employee Reimbursement
2. Leverage built-in control features
Benefits of Control
Features
Southwest
Region
$85/day
EnterpriseOne Expense
Management Benefit
Streamline Expense Processing
Benefits of
Credit Card
Charges Automated
Cdn$200 Credit Charges
• Improve accuracy by
eliminating data
entry errors
• Save time when
filling out expense
reports
EnterpriseOne Expense Management
Benefit
Increase Bargaining Power with
Preferred Suppliers
Benefits of Better
Contracts
• Receive larger
discounts from
preferred travel
suppliers
• Improve travel-
related services
for employees
Increased Bargaining Power with
Preferred Suppliers
3. Ensure employees use and receive full benefits
from preferred travel arrangement
Benefits of Exception
Notification
• Automatically collect
documentation when
an employee does not
use preferred travel
supplier
• Analyze exception
trends to better
Create Preferred negotiate meaningful
Vendor List
travel related
contracts and
services
Feature and Functionality
Highlights
Improve Accuracy and Control of Employee Reimbursements
• Auditing capabilities • Location-specific policies
• Multiple employee • Multi-currency capabilities
authority
• Ability to charge to
• VAT tax calculations multiple business units
• User-defined policy • Automated exception
definitions notification
• Customized • Workflow approvals
reimbursement policies
• Individual or group
employee profiles
• User-defined per diem
functionality
Feature and Functionality
Highlights
Streamline Expenses Processing
• Auditing capabilities • Location-specific policies • Processing of business travel
and relocation expenses
• Multiple employee • Multi-currency capabilities
authority • Consistent user interface
• Ability to charge to
• VAT tax calculations multiple business units • Simplified data entry for
expense reporting
• User-defined policy • Automated exception
definitions notification • Direct employee
reimbursement
• Customized • Workflow approvals
reimbursement policies • Configurable
• Individual or group reimbursement process
employee profiles steps
• User-defined per diem • Ability to import expenses
functionality from off-line reports
• Direct credit card company
reimbursement
Feature and Functionality
Highlights
Increase Bargaining Power with Preferred Travel Suppliers
• Auditing capabilities • Location-specific policies • Processing of business travel
and relocation expenses
• Multiple employee • Multi-currency capabilities
authority • Consistent user interface
• Ability to charge to
• VAT tax calculations multiple business units • Simplified data entry for
expense reporting
• User-defined policy • Automated exception
definitions notification • Direct employee
reimbursement
• Customized • Workflow approvals
reimbursement policies • Configurable • Ability to track expenses
by travel supplier
• Individual or group reimbursement process
employee profiles steps • Automatic documentation
• Ability to import expenses of preferred supplier
• User-defined per diem
from off-line reports exceptions
functionality
• Direct credit card company
reimbursement
Feature and Functionality
Highlights
PeopleSoft EnterpriseOne Expense Management
• Auditing capabilities • Location-specific policies • Processing of business travel
and relocation expenses
• Multiple employee • Multi-currency capabilities
authority • Consistent user interface
• Ability to charge to
• VAT tax calculations multiple business units • Simplified data entry for
expense reporting
• User-defined policy • Automated exception
definitions notification • Direct employee
reimbursement
• Customized • Workflow approvals
reimbursement policies • Configurable • Ability to track expenses
by travel supplier
• Individual or group reimbursement process
employee profiles steps • Automatic documentation
• Ability to import expenses of preferred supplier
• User-defined per diem
from off-line reports exceptions
functionality
• Direct credit card company
reimbursement
Benefits EnterpriseOne Expense Management
Net Income
Revenue
1
information to:
• Customer? 2 3 4
• Improve visibility A B C
• Product?
• Strengthen fiscal Channel Profitability
• Channel?
accountability Direct
Indirect
• Facilitate more Internet
eliminate waste,
and focus Actively manage customers,
resources products, and channels to
improve performance
Cost Accounting Opportunities
JD Edwards EnterpriseOne
Advanced Cost Accounting Results
Analyze profitability
Capture Detailed Cost
based on accurate and
Information
complete data
7 New Profitability
Ranking 3 1 2 4 Cost
Objects
Understanding Cost Objects
Automatically collect, track, and assign transaction
revenues and costs to products and customers
Transaction Systems Benefits of Cost
Sales Order Accounting
Objects
Manufacturing Transportation • Capture costs at the
Payroll Procurement lowest level possible
Benefits of Cross-
Cost Warehouse
Machine Hours Tracking Drivers
Square Footage
Driver
• Allocate cross-
department process to
multiple cost objects
Manufacturing Accounting
Benefits of Flexible
Marketing Inventory Assignments
Shipping
Sales
• Improve the
accuracy of analysis
Warehouse
Square Footage • Achieve more
Sales Orders
Machine Hours
meaningful and less
Shipped
arbitrary decision
Customer 04235 Product PM64 Direct Sales making
Costs Costs Channel Costs
Sales $16,000 Inventory $5,000 Sales $12,000
Marketing $10,000 Freight $10,000 Marketing $13,000 • Identify the cost of
Shipping
Service
$25,000
$9,000
Procurement $2,000 Accounting $5,000
cross-functional
Labor $20,000
activities
Cash Management
Short Term Cash Flow Forecasting
Business Requirement:
A user-friendly tool for creating short term cash flow
forecasts
Enhancement Functionality:
Cash flow forecasts can include general ledger, accounts
receivable and accounts payable transactions
Functionality to assign weighting factors to different types
of transactions
Capability to include or exclude past due documents in
calculations
An inquiry screen to display results and a report output
Cash Type Rules Forms
Work with Cash Type Rules Revise Cash Type Rules
Creating Cash Forecast Report
Structures
Defines the
reporting structure
and format
Arrange cash type
codes into
reporting
hierarchies
Predefined cash
type codes can be
automatically
included
Viewing Cash Forecast
Results
Short Term Cash Flow
Forecasting ReportSample report
produced from
cash forecast
inquiry
Planning and Budgeting
Planning and Budgeting Overview
• Forecast up to
15 years • Greatly reduces time and effort
• Unlimited to forecast or budget
Growth
• Conforms to today’s stringent
Patterns
compliance requirements
• Multiple
version • Improved decision-making
capability
• Improved responsiveness to
changing business conditions
Budget and Forecast Tool
• Enhancement: Budget and Forecast Tool
Business Requirement:
A budgeting and forecast tool that can easily
generate short or long term forecasts which can
then be committed to the general ledger
Enhancement Functionality:
Provide the ability to forecast accounts for 1 to 15
years
Provide the ability to run multiple revisions of a
forecast
Provide the ability to upload finalized forecasts to a
user defined ledger.
Creating Growth Patterns
Create fixed or percentage growth patterns
Each growth
pattern can be
setup with custom
percentages for up
to 15 years
Assigning Growth Patterns to Business
Units
Growth patterns
created in step 1
can now be
assigned to a
business unit and
revision number
Reviewing/Adjusting Forecast Screens
View annual forecast amounts
View forecast by
account/period
Uploading Finalized Forecasts to Budget
Forecasts can be uploaded to
the General Ledger
The Apply Forecast to Budget Processing
options for
program populates the GL R1407 –
Apply
Balance File in a user
Forecast to
specified ledger Budget
• 650+ Built-in
Process Models
• Track changes
using custom Review audit and
reports signature information
Solution Highlight: Foundation
• Create/Manage
Calendar
schedules for
compliance
tasks
• Automatic
notification of
exception events
via workflow Kickoff Meeting: Account for Asset Process
Review
• Direct integration
to MS Outlook
and Lotus Notes
Additional Internal Controls
• Workflow • Balanced Posting
• Processing Options Requirements
• Application Security • Valid Account Edit
• System Constants • Approval Limits
• Integrated Postings to GL • Credit Limits
• Budget Expenditure • Hierarchical Approval
Approval Routing
• Positive Pay • Posting Approval
• Expense Management • On-Demand Audit Trails
• Integrity Reports • Built-in Balancing Controls
• Batch Controls • Payee Control
FMS Conclusion
• 100% of EOne Customers Use FMS
• EnterpriseOne General Ledger is required by all
subsystems (cannot currently be decoupled)
• Core functionality of FMS is competitive in the
global ERP marketplace
• EnterpriseOne key differentiators are essential
tools for existing customers
GL Centric Processing
Truly REAL TIME integration
Advanced Cost Accounting
Subledger Functionality
Organizational and Setup Change Tools