2009 Oracle Corporation Proprietary and Confidential

Cost Management Advisor Webcast

Day, Date, 2004 Tues., May 10, 2011 time5/9/2011 p.m. ET USA MT Mon 10:00 PM India Tue 5/10/2011 9:30 AM China Tue 5/10/2011 12:00 PM Korea Tue 5/10/2011 1:00 PM Teleconference Access: Romania Tue 5/10/2011 7:00 AM
North America: xxxx International: xxxx Password: Advisor

Upcoming Enterprise Asset Management (EAM) Community Webcasts:

May 10, 2011: To Be Announced in Doc Id 1167580.1 June 14, 2011: To Be Announced in Doc Id 1167580.1 July 12, 2011: To Be Announced in Doc Id 1167580.1

North America:

(866) 627-3315
International:

+1-706-679-4880 Doc Id: 1148600.1

Conf ID: CM Advisor

For complete details on Cost Management Webcast Events, please see Note 1167580.1. For complete details on All Other upcoming Oracle Advisor Webcast Events, please Note 398884.1. Do you have any requests for future Cost Management Advisor Webcast Events? Please email your suggestions to bonnie.adam@oracle.com, subject: Topics of Interest.
2

2009 Oracle Corporation Proprietary and Confidential

<Insert Picture Here>

An Introduction: Oracle Subcontracting

Srikanta Nanjundaswamy Oracle Senior Software Engineer

Safe Harbor Statement

The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decision. The development, release, and timing of any features or functionality described for Oracles products remains at the sole discretion of Oracle.

2010 Oracle Corporation Proprietary and Confidential

<Insert Picture Here>

An Introduction: Oracle Subcontracting

Srikanta Nanjundaswamy Oracle Senior Software Engineer

AGENDA
Introduction to Subcontracting Types of Subcontracting Subcontracting in Oracle Features of Oracle subcontracting Basic setups in Subcontracting Upcoming Trainings Demo Q&A

2010 Oracle Corporation Proprietary and Confidential

Introduction to Subcontracting
Subcontracting is a common business practice where a brand-owner or an Original Equipment Manufacturer (OEM) outsources its entire manufacturing operations or a portion of it by entering into a contractual agreement with an external manufacturing service provider commonly known as a Manufacturing Partner (MP).

Types of Subcontracting
Extent of Outsourcing: Enterprises can opt to outsource the entire manufacturing process or a portion of it by collaborating with a MP. Nature of Component Supply: Enterprises can either own and manage the components for consumption at the MP's facility, or engage a supplier to either own and consign inventory, or drop ship the components at the MP's facility. In other situations, the OEM may charge the MP by registering a sale of the components resulting in a complete transfer of Ownership Shipment of Finished Goods: Enterprises can decide to either supply finished goods directly to the customer or enter into a contractual agreement with the MP to drop ship the finished goods to the customer's facility.

Subcontracting In Oracle
Oracle supports the following types of subcontracting business practices that involve complete outsourcing of assemblies and most importantly, component sale by an OEM to a MP: Chargeable Subcontracting Chargeable Subcontracting is a practice where the OEM completely outsources the manufacturing of an assembly to an MP and makes a provisional sale of components by invoicing the MP Buy/Sell Subcontracting Buy/Sell Subcontracting is a business practice where an Original Equipment Manufacturer (OEM) completely outsources the manufacturing of an assembly to a Manufacturing Partner (MP) by buying the assembly from the MP and most importantly, selling the components to the MP that are consumed in the manufacturing of the assembly at the MP's premises. The ownership of the components is transferred to the MP immediately after the OEM ships the components to the MP unlike Chargeable Subcontracting where the OEM retains the ownership of the components throughout the subcontracting process.

Features of Oracle subcontracting

> Modeling of OEM and MP as inventory organizations to facilitate tracking and simulation of subcontracting processes. > Chargeable Subcontracting support is only for Standard Costing Orgs and can be deployed in Japan, Taiwan, and Korea. > Buy/Sell Subcontracting support is for Standard, Average, FIFO and LIFO costing methods and can be deployed in any country. >Separate tracking of accounting transactions and variances associated with subcontracting component sales in the OEM Org by setting up different accounts for Subcontracting COGS, Subcontracting Revenue, and Subcontracting Receivables.(only for chargeable subcontracting) >Integrated planning (using ASCP) and subcontracting execution in discrete and project manufacturing environments to manage and control processes throughout the extended supply chain >Support for different types of component supplies both Pre-positioned and Synchronized,

10

Features of Oracle subcontracting

> Automatic creation of discrete jobs, replenishment sales order and purchase orders by running interlock manager >Dedicated Subcontracting Workbench and Reports providing better tracking and increased visibility throughout the subcontracting life cycle.

11

Basic setups in Subcontracting

Setting Profile Options Defining Original Equipment Manufacturer (OEM) Organizations Defining Manufacturing Partner Organizations Defining WIP Parameters Defining Customers and Suppliers Associating Customers and Suppliers Setting Up Item Definitions Setting Up Bills of Material for Outsourced Assemblies Setting Up Subcontracting Accounting Defining Receivables Transaction Types Defining Transaction Sources Setting Up Order Management Transaction Types Setting Up Standard Costs of Components and Assemblies Defining Price Lists for Subcontracting Components Setting up Purchase Price of an Outsourced Assembly Setting Up Shipping Network/Shipping lead times Defining Sourcing Rules Defining Netting Agreements .
12

Demo Setups Profile set up

The above two profiles should be enabled to use subcontracting

13

Demo Setups Defining OEM and MP orgs

OEM org is defined and OEM org location is attached from Inventory responsibility

14

Demo Setups Defining OEM and MP orgs

MP3 org is defined and MP org location is attached from Inventory responsibility

15

Demo Setups Defining OEM and MP orgs

Define OEM org Organization parameters from Inventory responsibility

16

Demo Setups Defining OEM and MP orgs

Define MP org Organization parameters from Inventory responsibility

17

Demo Setups Modelling Customer and Suppliers

Model OEM org as a supplier and MP org as customer and supplier

18

Demo Setups Modelling Customer and Suppliers

Model OEM org as a supplier and MP org as customer and supplier

19

Demo Setups Modelling Customer and Suppliers

Model OEM org as a supplier and MP org as customer and supplier

20

Demo Setups Modelling Customer and Suppliers

Model OEM org as a supplier and MP org as customer and supplier

21

Demo Setups Associating Customer and Supplier to OEM and MP orgs

Associate Supplier modelled from OEM org as supplier in OEM org parameters

22

Demo Setups Associating Customer and Supplier to OEM and MP orgs

Associate Supplier and customer modelled from MP org as supplier and customer in MP org parameters
23

Demo Setups Defining WIP parameters

Define WIP paramters for MP org

24

Demo Setups Receivables Transaction Types

Define the Recevables Transaction types

25

Demo Setups Defining Transaction Sources

Define the Recevables Transaction typesTransaction sources from Order Management

26

Demo Setups Defining Order Management Transaction Types

Define the Transaction types in Order management which is used while creating sales order

27

Demo Setups Defining Order Management Transaction Types

Define the Transaction types in Order management which is used while creating sales order

28

Demo Setups Defining Shipping Networks

Define shipping networks between OEM and MP org from Inventory

29

Demo Setups Defining Shipping Networks

Define shipping networks between OEM and MP org from Inventory and make sure Default order type for Internal orders are assigned

30

Demo Setups Defining Shipping Networks

Define shipping networks between OEM and MP org from Inventory and assign a default shipping method

31

Demo Setups Defining Items In MP and OEM orgs

Define Items from Inventory

32

Demo Setups Defining Items In MP and OEM orgs

Define Items from Inventory , ensure you have checked outsourced assembly flag for Outsourced assembly

33

Demo Setups Defining Items In MP and OEM orgs

Define Items from Inventory and ensure for the assembly you have set as Do not release for Release time fence so that planning does not release the assembly order to MP org

34

Demo Setups Defining Items In MP and OEM orgs

Define Subcon assembly component from Inventory

35

Demo Setups Defining Items In MP and OEM orgs

Define Subcon assembly component from Inventory

36

Demo Setups Defining Items In MP and OEM orgs

Define Subcon assembly component from Inventory

37

Demo Setups Defining Items In MP and OEM orgs

Define Subcon assembly component from Inventory

38

Demo Setups Defining Items In MP and OEM orgs

Define Subcon assembly component from Inventory

39

Demo Setups Defining Items In MP and OEM orgs

Define Subcon assembly component from Inventory

40

Demo Setups Defining Items In MP and OEM orgs

Define Subcon assembly component from Inventory

41

Demo Setups Defining Items In MP and OEM orgs

Define Subcon assembly component from Inventory

42

Demo Setups Defining Items In MP and OEM orgs

Define Subcon assembly component from Inventory

43

Demo Setups Defining Items In MP and OEM orgs

Define Subcon assembly component from Inventory

44

Demo Setups Defining Items In MP and OEM orgs

Define Subcon assembly component from Inventory

45

Demo Setups Defining Items In MP and OEM orgs

Define Subcon assembly component from Inventory

46

Demo Setups Defining Items In MP and OEM orgs

Define Subcon assembly component from Inventory

47

Demo Setups Defining Items In MP and OEM orgs

Define Subcon assembly component from Inventory

48

Demo Setups Defining Items In MP and OEM orgs

Define Subcon assembly component from Inventory

49

Demo Setups Defining Items In MP and OEM orgs

Define Subcon assembly component from Inventory

50

Demo Setups Defining Items In MP and OEM orgs

Define Subcon assembly component from Inventory

51

Demo Setups Defining Items In MP and OEM orgs

Define Subcon assembly component from Inventory

52

Demo Setups Defining Items In MP and OEM orgs

Define Subcon assembly component from Inventory

53

Demo Setups Defining Items In MP and OEM orgs

Define Subcon assembly component from Inventory

54

Demo Setups Defining BOM In MP and OEM orgs

Define BOM in OEM org

55

Demo Setups Defining BOM In MP and OEM orgs

Define BOM in MP org

56

Demo Creation Of PO

Create a PO for the Subcontracted assembly in OEM org OU

57

Demo Launching Interlock Manager

Launch Interlock manager from Subcontrating super user responsibility.Make sure the paramters are correct and it refrences the correct OU

58

Demo Viewing results in Subcontracting Workbench

Navigate to Subcontracting workbench from Suncontracting super user responsibility

59

Demo Viewing results in Subcontracting Workbench

Query in the subcontracting workbench with the OEM and MP org and you can view the subcontracted assembly purchase orders

60

Demo Viewing results in Subcontracting Workbench

Also you can view components used for the subcontracting order and also the quantity required for each component and quantity allocated

61

Demo Viewing results in Subcontracting Workbench

Also you can view components used for the subcontracting order and also the replenishment order for the components

62

Demo Workorder and sales order creation after Interlock

Also you can view subcontracting workoprder created in the WIP for the outsourced PO by interlock manager

63

Demo Workorder and sales order creation after Interlock

Also you can view the replenishment sales order created for the component in Order management

64

UpComing Training
A Complete Subcontracting process Demo Integration of Subcontracting with ASCP Subcontracting and ECO

65

66

Visit My Oracle Communities

Collaborate with a large network of your industry peers, support professionals, and Oracle experts to exchange information, ask questions & get answers. Find out how your peers are using Oracle technologies and services to better meet their support and business needs. Exchange Knowledge Resolve Issues Gain Expertise

Visit the Cost Management Support Community now!! 1. 2. 3. 4. Log into My Oracle Support. Select the Community link. Select the Enter Here button. Select the Cost Management link under the E-Business Suite section of the My Communities Menu on the left side of the window.

2009 Oracle Corporation Proprietary and Confidential

67

Cost Management Advisor Webcast Calendar (Doc ID 1167580.1)

2009 Oracle Corporation Proprietary and Confidential

68

Feedback
Please let us know how we are doing by providing the following: 1. 2. 3. 4. Based on the webcast description, how did your learning experience compare to what you expected when you began the webcast? Would you recommend the recording for this webcast to your colleagues? What topics specifically would you like to see covered in the Advisor Webcasts? Will you attend future Advisor Webcasts?

Email your feedback to bonnie.adam@oracle.com or submit post webcast survey at the conclusion of todays session.
69

2009 Oracle Corporation Proprietary and Confidential

THANK YOU

2010 Oracle Corporation Proprietary and Confidential

70