Adobe Captivate Sunday, March 06, 2016 Slide 3 - Oracle Value Chain Execution Cloud Release 9 Slide notes Hello, my name is Karthik. Welcome to the Release Training for the new Oracle Applications Cloud Supply Chain Financial Orchestration product. In this session, we’ll introduce you to modeling financial flows for Supply Chain Financial Orchestration. Notes Page 1 of 13 Adobe Captivate Sunday, March 06, 2016 Slide 4 - Slide 4 Slide notes We’ll give an overview of Supply Chain Financial Orchestration setups, followed by more detailed explanation on how you can use it, and what business value it brings. Then we’ll walk you through a demonstration where you’ll have the opportunity to see the setups modeled for a customer shipment between internal parties scenario. Next we’ll explain what you need to consider before enabling these capabilities in your business, and what you need to know to set them up. Notes Page 2 of 13 Adobe Captivate Sunday, March 06, 2016 Slide 5 - Model Flexible Financial Flows Slide notes Supply Chain Financial Orchestration is a configurable application that manages all the trade relationships between internal parties belonging to a large corporation typically spread across geographies. The supply chain business flows supported are Customer Shipment (between internal parties), Global Procurement and Internal Transfers. The setups are highly configurable and gives you the flexibility to model the financial relationships to comply with all your accounting and regulatory requirements like rules to calculate an arms-length transfer price or option to generate intercompany invoices for internal trade between a certain pair of business units. You will also be able to build rules specifying the conditions based on which the supply chain events will be matched to a financial route. Using this you could define multiple models and apply different models to different supply chain events based on these rules. Notes Page 3 of 13 Adobe Captivate Sunday, March 06, 2016 Slide 6 - Model Financial Relationships Slide notes Supply Chain Financial orchestration consolidates all the setups require for execution of the financial flow automatically. This product allows you to define transfer pricing rules and documentation rules at granular level and associate them to the buy and sell terms and financial routes. You will also be able to model the relationships between the parties and the business units for creation of intercompany invoices all in a single place, sequentially. This product provides exhaustive modeling capabilities to suit your most complex financial flows. The date effectivity feature allows you to seamless manage the changes to the regulatory or accounting behavior effective from a future date. Notes Page 4 of 13 Adobe Captivate Sunday, March 06, 2016 Slide 7 - Calculate Transfer Price Slide notes Using Transfer Pricing Rules, you can specify how the transfer price should be calculated for a financial flow. You can choose either the transaction cost or the document price i.e., purchase order price or sales order price as the basis for calculation of the transfer price. You can also specify a markup that needs to be applied on the source to arrive at the transfer price. Supply chain financial orchestration also allows you to call a third party pricing service at run time to get the transfer price. Notes Page 5 of 13 Adobe Captivate Sunday, March 06, 2016 Slide 8 - Establish Documentation and Accounting Rules Slide notes Documentation and accounting rules allows you to control the different aspects accounting and documenting the financial orchestration flow. For example, you can specify while currency should be used to denominate the intercompany trade. Or, whether to track profits separately in valuation of inventory in the destination organization. This allows you to configure even the most complex accounting and statutory requirements for your supply chain processes. Supply Chain Financial orchestration allows you to setup these rules once and reuse them across different financial orchestration flows. This allows you to manage the changes easily. For example, if you would like to change the markup percentage for transfer price calculation. Once you change the transfer pricing rule, it applies to all the financial orchestrations flows to which the transfer pricing rule is associated to. Notes Page 6 of 13 Adobe Captivate Sunday, March 06, 2016 Slide 9 - Build Rules to Match Events to Financial Route Slide notes The Financial Orchestration qualifier is a simple yet powerful rule builder. The financial orchestration qualifier associated to the financial orchestration flow determines its applicability to a source document like, a Purchase Order or a sales order. You can choose from a wide variety of business attributes like, supplier country or item category etc to define these rules. Notes Page 7 of 13 Adobe Captivate Sunday, March 06, 2016 Slide 10 - Associate Business Units with Customers and Suppliers Slide notes Using the profit center business unit to party relationship setup you can define, view and edit the relationships between the profit center business units and the supplier sites and customer sites associated to them. The supplier sites and customer sites are used to create the intercompany receivable and payables invoices in Fusion Financials. You could also define shared service center business units that can process the intercompany invoices for one or more profit center business units. Notes Page 8 of 13 Adobe Captivate Sunday, March 06, 2016 Slide 11 - Model Flexible Financial Flows Slide notes Modeling the supply chain financial orchestration flow for your business processes helps you to leverage the tax benefits from different tax regimes. The flexible and easy modeling capabilities of SFO helps you to save time spent in configuration of your financial orchestration flows and managing changes to it from to time. The comprehensive nature of the financial orchestration model helps you to reduce the manual intervention in execution resulting in improved efficiency. Notes Page 9 of 13 Adobe Captivate Sunday, March 06, 2016 Slide 21 - Slide 21 Slide notes So that concludes the audio portion of this presentation, thank you for listening. There is no audio in the implementation advice section. Notes Page 10 of 13 Adobe Captivate Slide 22 - Feature Impact Guidelines Slide notes Notes Page 11 of 13 Sunday, March 06, 2016 Adobe Captivate Slide 23 - Associated Release Training Slide notes Notes Page 12 of 13 Sunday, March 06, 2016 Adobe Captivate Slide 24 - Job Roles & Associated Duty Roles Slide notes Notes Page 13 of 13 Sunday, March 06, 2016