Best Practices in
Managing Spend
PeopleSoft Enterprise Financial
Management Applications
April 5, 2006 @ 10:30 am
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Agenda
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Spend Management Issues
Best Practices
How PeopleSoft Enterprise Delivers
Q&A
Spend Management Issues
Maverick Spend
Ineffective Cost Mgmt
Underutilized Assets
Excessive Complexity
Best Practices in Managing
Spend
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Visibility into transactions and proactive
monitoring
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Automated processing with built-in internal
controls and workflow
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Monitoring and analysis based on policies
Expense
Payables
Self-Service Management and Issue
Resolution Tools

Employees, Suppliers
Benefits Realized with Best
Practices
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Enforcement of spend against policies on an
ongoing basis
Less time on non-value add activities
More transactions per FTE at a lower cost
Fewer errors
Improved relationship with suppliers
Delivered Best Practices
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Expenses
Payables
eSettlements
Best practice features
are already available in
many of the solutions
you own today.
Travel and Expense At-a-Glance
Manage Travel and Expense
• Cost Visibility, Controls & Audit
Travel
Create
Approve
• Supplier Negotiations
Audit
Pay
Employees
Employees
Credit Card
Providers
•Access to timely and comprehensive travel data
•Enforce policies, procedures
•Maverick spenders
•Preferred suppliers
•Top Spenders
•Ensure compliance
•Trend (Corporation, Industry, Sector)
•Heavy reliance on automation
•Centralize travel management and supplier negotiations
Enterprise Expenses
Enforcing
Compliance with
Company Policy
Submitting Expenses
 Manage taxable
expenses
 Configurable
accounting by expense
 Automated deductions
 Preferred vendor
tracking

Expenses Analytics
Visibility into
Ongoing Activities
Leverage delivered
analytics to gain
business insight
 Visual alerts provided
on summary approvals
to easily identify outof-compliance
transactions

Expenses Summary Approvals
Approvers may be configured for different levels of
authorization to modify transactions by transaction type.
Travel and Expense Processing
The Paper Premium
$20,000
•
$1 Billion+ companies with
132,000 expense rpts / year
$15,000
•
$10,000
•
$5,000
Wastes $15,840 Million
over 3 years
Electronic transactions cost
83% less
$0
1 Year
2 Year
3 Year
Other Benefits of Automating Travel and Expense
• Credit card Incentive strategies
• Supplier negotiation
Manual cost @ 48 / Expense report*
Electronic cost @ 8 / Expense report
• Audit control
* Sources: Aberdeen Group, Best Practices in
Category Spend Management: Travel
Expenses 8.9 Enhancements
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Enable automated integration to Projects
Enhance corporate card payment
reconciliation
Rollover prior year budget allocations for
travel
Pre-configured workflow for approvals &
audits
Configurable Summary Approvals
Benefits of Best Practices
• Use
of pre-trip travel authorization
– Enforce compliance to company policy.
• Enable
My Wallet expense entry
– Spend more time on strategic tasks.
• Automate
Expenses policy and compliance
– Visibility into spend using analytics.
• Reduce
costs through improved negotiations
with travel suppliers.
Procure-to-Pay At-a-Glance
Manage Suppliers & Contracts
• Supplier Performance
• Expirations & Renewals
Source
Purchase
Settle
• Supplier
Selections
• Negotiations
• Requisitions
• Approvals
• Orders
• Receipts
• Invoices
• Payments
Best Practice – Streamline
Payables
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Prevent non-PO invoices
Enable duplicate vendor setup checking
Apply 2/3 way matching
Eliminate paper invoice (use ERS, web-invoicing,
XML/EDI)
Enable Supplier self-service
Take advantage of payment discounts
Best Practice – Enable
Duplicate Invoice/Vendor
Checking
Vendor Controls
Invoice Controls
Best Practice – Automate
2/3 Matching
Matching Headers
• Streamlined matching process
Purchase Order
Invoice
Receipts
•Configurable Match Rules attached to
vendors
• Usage of Document Association Criteria
• Header Level Matching
• Expedite Match Exception Handling
• New Matching Workbench
• Debit Memos – Auto-Adjustment
• Supplier Metrics
• Use of Summary Invoice
Matching Lines
Purchase Order
Invoice
Receipts
Match Rule Control Attached
to the Vendor
•Match
•Exception
•Debit Memo
•Continue if True
•Continue if False
•Always Continue
**NEW
Payables Processing
The Paper Premium
$2,500,000
•
Cumulative
Cost Difference
$2,000,000
•
$1,500,000
•
$1,000,000
$2.0 Billion
company with
100,000 invoices /
year
Wastes $1.5 Million
over 3 years
Electronic transactions
cost 60% less
$500,000
Manual cost @ 8.50 / invoice
Electronic cost @ 3.44 / invoice
0
1 Year
2 Years
3 Years
Sources: Gartner Inc., Invoicing and Payments: The Payer Value Proposition and
Oracle Corp.
Best Practice – Enable Supplier
Self-Service
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eSettlements fully integrates with your
PeopleSoft Payables :
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Requires activation, not implementation
Payables setup and data is automatically pulled
New roles / workflow / security are available
Buyer and Supplier Self-Service facilitates enabling
of new users
Web-invoicing allows your supplier to key-in
invoices effortlessly
eSettlements Business Process
B2B
Collaborative Framework
HTML
Best Practice - Web-based Invoicing
Supplier
Step
3 –logs
Step
in
the
Step152–––Supplier
Supplier
selects
Step
The
supplier
can
4 – The
Buyer
reviews
the
Step 6
invoice
follows
Once
the
web-invoice
Supplier
Self-Service
information
list
Print a copyinofrestricted
the invoice
invoice
authorize
to
the
buyerand
approval
process
is completed,
supplier
of values,
ForeSettlements
his
ownthe
records
be
Forregistered
payment
submits
it toan
Buyer
copy
from
his
PO review
lines
Or
request
XML
file for
(or his
receipts)
ERP
integration
Web-based Invoicing Benefits
Speed

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Ease of use
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Quality
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No cost
Easy to use (no knowledge of EDI/XML)
Eliminate Paper
Allows vendor more control over
accuracy of data
Eliminates re-key entry errors
Eliminates lost and slow mail
No software to buy for the vendor
Route the invoice to the appropriate
approver
Payables 8.9 Enhancements
•
Streamlined Straight-though-Processing
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•
Summary Invoice Entry
Re-designed Quick Invoice Entry
Enhanced Voucher with Balancing
Voucher Excel Upload
Enhanced Controls and Compliance
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Flexible, Configurable Match Rules
Header Level Matching and Tolerances
Matching Workbench - Match Actions and Drill-down
Debit Memos –Auto-Adjustment
Document Association (formerly Receipt Aware)
Matching Workflow and Notifications
Payables 8.9 Enhancements
•
Improved Performance and Usability
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•
Improved Payables Inquiries with Configurable Search
Initiate Real-Time Processing Across Payables
Standardized Archiving Tool for Financials
Compliance - JFMIP
VAT Improvements
Payables Integration
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Real Estate Management
Financial Gateway (through Cash Management)
Maintenance Management
Claims Management (through Purchasing)
eSettlements
Benefits of Best Practices
•
Automate requisition/PO process
Use automatic matching engine with business
rules
•
– Drive down costs associated with paper processing
and manual activities.
• Enable
supplier management tools
- Utilize early payment discounts and improve
working capital management.
• Enable supplier self-service
- Improve supplier relationships and reduce supplier inquiries.
Contacts
Payables/eSettlement:
amrita.mehrok@oracle.com
Travel & Expenses:
diana.gray@oracle.com
mark.sinn@oracle.com