OFSS Fusion Migration: Policies and Procedures

[Published on 20 May 2013: 1 st version]

Contents
OVERVIEW............................................................................................................................................... 2 POLICIES ALREADY EFFECTIVE ................................................................................................................. 2 POLICIES WHICH WILL BE EFFECTIVE ON AND FROM 1 JULY 2013......................................................... 2 1. Operations Source to Settle ......................................................................................................... 2 (a) (b) 2. Policies that are already effective ........................................................................................... 2 Policies which will be effective on and from 1 July 2013........................................................ 3

Record to Report ............................................................................................................................. 3 (a) (b) Effective policies as of today................................................................................................... 3 Policies to be effective on and from 1 July 2013 .................................................................... 4

3.

Consulting ....................................................................................................................................... 4

OVERVIEW
On July 1, 2013, Oracle Finance Solution System (OFSS) will implement Fusion. This document provides the link to important finance policies a) which are already effective and b) which will be effective as of July 1, 2013.

POLICIES ALREADY EFFECTIVE

When CIC occurred, Oracle implemented business operations policies and some finance policies. This document provides the link to Oracle Website so you can ensure compliance.

POLICIES WHICH WILL BE EFFECTIVE ON AND FROM 1 JULY 2013

Various finance policies will be effective on Fusion implementation. This document will provide the areas where the finance policies will be changed. It will also provide the link to the Oracle website for your further compliance guidance. It is imperative that all employees and contractors review and familiarize themselves with the new policies straight away, as all employees and contractors must comply with these policies immediately when they become effective. OFSS employees will receive communications from Oracle line of business executives and your managers. These communications will outline additional policies, operating requirements and general announcements. Please note that Oracle policies and procedures apply worldwide. You can also refer to the list of Oracle Finance Administration policies at http://my.oracle.com/site/fin/gfo/Policies/index.htm.

1.
(a)

Operations Source to Settle

Contact: p2p-helpdesk_ww@oracle.com Policies that are already effective
Summary of policy
This policy ensures appropriate capitalization, depreciation and otherwise correct accounting for fixed assets in accordance with US generally accepted accounting principles (GAAP) and U.S. and international statutory requirements as appropriate. This policy applies to Oracle worldwide.

Policy Global Fixed Assets Policy

Global Travel and Expense Policy

Global Contingent Labor Policy

Policy provides specific instructions and guidelines for the individual purchase and subsequent reimbursement of travel and business related expenses incurred while conducting Company authorized business. Expenses and receipts shall comply with government, local tax, and regulatory requirements. Policy provides specific instructions and requirements for Oracle personnel who engage third party resources to provide contracted services to Oracle.

(b)

Policies which will be effective on and from 1 July 2013

Summary of policy CIC Spending approval policy is to be replaced to Global Spending approval policy. - Global Spending Approval limits matrix - Additional final approvers for specific expenditures - LOB specific approval rules - PO Mandate and requirements

Policy Global Spending Approval Policy

Global Source to Settle Policy

Global Procurement Document Signing Authority Gifts to Employees Policy

Incentive Club Policy

Oracle Vendor Endorsement Policy Hardware Loan/Evaluation Policy Software Acquisition Approval Policy

- Employee responsibilities when requesting goods or services - Guidelines for the approval of purchases - Guidelines for the payment of purchases - Purchase Order requirements and guidelines - Expense types not requiring a PO - Standard Payment terms - Approval requirements for Funds Release or Payments with no P/L Impact -Contract Guidelines. Standard contract templates are located on Global Procurement Contracts website. This policy governs who has authority to sign agreements and documents on Oracles behalf. This policy ensures that Oracle treats gifts and awards to employees properly by providing managers with guidelines for reporting such gifts for special achievement, dedication, or length of service. This policy addresses the tax impact of incentive clubs and similar awards and identifies responsibilities for tax filings and payments. Policy on requests to use the Oracle name, Oracle logo, quotes from Oracle employees, have Oracle field calls from a vendors prospects, use Oracle as a reference, etc.
Policy around and approvals required for the use of loan or evaluation equipment while at an Oracle facility

Policy document identifies the approval policies and procedures applicable to the acquisition of all thirdparty software at Oracle

2.
(a)

Record to Report
Effective policies as of today
Summary of policy Recognition and measurement of accruals for loss contingencies and accounting for gain contingencies with appropriate disclosures

Contact: bellur.ramakrishna@oracle.com, sivakumar.umapathy@oracle.com

Record to Report team will confirm the scope of effective policy and its summary once available. Policy ACCOUNTING FOR CONTINGENCIES POLICY

ACCOUNTING FOR SEVERANCE, FACILITY & OTHER EXIT ACTIVITY COSTS POLICY ACQUISITION AND DIVESTITURE CLOSING ACCOUNTING POLICY ACQUISITION RELATED COST AND RESTRUCTURING COST GUIDELINES BUSINESS COMBINATION ACCOUNTING POLICY LIQUIDITY & SOLVENCY POLICY PENSION POLICY PURCHASED INTANGIBLES AND GOODWILL POLICY RELATED PARTY TRANSACTIONS DISCLOSURE POLICY REVENUE ACCRUAL POLICY STOCK COMPENSATION POLICY VARIABLE COMPENSATION ACCRUAL POLICY

Accrual related to severance for employees and facilities restructuring

Policy on closing of a Merger, Acquisition or Divestituture

Guidance on accounting of Acquisition and Restructuring costs. Defines the scope of transactions to be accounted for as Business Combinations along with appropriate accounting. Ensures entities have sufficient cash funds to meet their liabilities, settling intercompany balances at the due date alongwith ensuring solvency position of the entity. Pension accounting based on the actuarial valuation Purchase accounting related entries Guidelines for identifying and aggregating Related Party Transactions with appropriate disclosure. Revenue accrual for orders signed but not booked during quarter ends Stock comp as per the USGAAP requirements Quarterly expense accruals for individual compensation plans based on annual targets, net income.

(b)

Policies to be effective on and from 1 July 2013

The Record to Report team is in process of creating the various policies in order for Fusion go live. We will update the status shortly including its effective date. Policy Summary of policy

TBC

TBC

3. Consulting
Contact: HQINFO_US_appr@oracle.com
Employees should review the policies under eSource Services tab and Global Business and Sales tab, which are already effective. Please contact HQINFOR_US_appr@oracle.com if you have any questions.