“This presentation is for informational purposes only and may not be incorporated into a contract or agreement.

”
 This document is for informational purposes. It is not a commitment
to deliver any material, code, or functionality, and should not be
relied upon in making purchasing decisions. The development,
release, and timing of any features or functionality described in this
document remains at the sole discretion of Oracle. This document in
any form, software or printed matter, contains proprietary information
that is the exclusive property of Oracle. This document and
information contained herein may not be disclosed, copied,
reproduced or distributed to anyone outside Oracle without prior
written consent of Oracle. This document is not part of your license
agreement nor can it be incorporated into any contractual agreement
with Oracle or its subsidiaries or affiliates.
Alan Fothergill
Vice President, Financial Applications
Development
Oracle Corporation

Natalia Rachelson
Product Strategy Group Manager, Credit-to-
Cash Applications
Oracle Corporation
Credit-to-Cash
Release 11.5.10 and
Beyond
Information-Driven Finance
Agenda

y Market Trends and Challenges

y Credit-to-Cash Space
y Oracle Solution
y For More Information
y Questions
 Credit-to-Cash Business Flow At-a-Glance
Invoice Customers
Sell Goods and Services

The Credit Research Foundation: Manage Revenue

“Receivable portfolio managers are saddled with
Make Credit Decisions
the responsibility of managing the firm’s single largest asset.
The opportunity to add worth through continuous incremental
improvementThe to theBusy World
receivables of Credit-
management process has the
Reduce DSO
to-Cash Professionals
potential of becoming a key factor contributing to the
enhancement of the firms economic value. An emphasis on
cash andand
Resolve Disputes working capital in today’s business environment will
put an increased responsibility on the receivables manager to
Deductions
become more proactive in the cash management process and
more focused on cost containment” Receive Payment

Collect Delinquent
Receivables
 Business Pressures
External Internal
Pressure Demands

• Ensure Sound Internal Controls ƒ Achieve Operational Agility

(SOA & IFRS)
• Lower DSO
• Accurately Record Revenue
• Attain Strong Balance Sheet
• Reduce Bad-Debt Write-Offs
ƒ Make Better Informed Decisions
ƒ Play a Key Role in Corporate
Strategy
ƒ Ensure SOX Compliance

Understanding the Reality

• “Do more with less” while improving competitive position
• Decentralized global operations present management challenges
 Opportunity
Foster Growth by Lowering DSO

High
High DSO Ways to Lower DSO
“A 10-20% decrease in disputed and
exception invoices can decrease DSO
DSO – Payment Terms

by 55%.” Source: PayStream Advisors

Industry Average

Target DSO = Payment Term

Low

Low Business Growth Opportunity High

Lower DSO allows companies to be more opportunistic and take

justified risks to spur growth. High DSO severely limits risk tolerance.
The Credit-to-Cash Imperative
Improve Cash Flow
Deliver Better Business Performance

Instill Fiscal Discipline

Meet Evolving Compliance & Enterprise Risk Rqmts

Increase Efficiencies
Facilitate Business Processes at the Lowest Cost

Optimize Customer Relationships

Improve the Quality of Customer Interactions
What Customers Are Achieving…

“Oracle applications are the nervous

system of our corporation. We couldn't run
without them. With our new global instance we have the
infrastructure to grow to a $10 billion company. Oracle systems can
take ViewSonic anywhere our CEO and Chairman want to go. And,
we can now support them with the information they need to make
critical business decisions.”
Robert Moon, VP Info Services

Live on 11i single global instance

• Financials, Purchasing, Discrete Manufacturing, Order Management, iStore
• Single global instance for North & South America, Asia and Europe with
standardized business processes (replaced 3 separate systems)
• Saved $2.5M annually with reduced IT personnel and hardware costs

9 Decreased average time to close financial books by 79%; has

closed books as quickly as 3.5 hours after products ship
What Customers Are Achieving…

“Upgrading to Oracle E-Business Suite 11i

enabled us to run all our accounts from a
single, centrally managed database. Users can quickly and easily
access information using any Internet browser.”
Jeff Clark, Project Manager

Live on 11i in the UK and Ireland

• Financials, Human Resources, Payroll, Projects, Project Billing
• Chose Oracle for its global expertise and integrated,
collaborative system using a common data repository
• Consolidated 5 systems into single, unified e-business system

9 Decreased closing costs by 7%

9 Reduced invoice issue time by 33%
A Few More Customers…
How Oracle
Delivers
Oracle Financials
Integrated Business Processes

‹ Corporate Performance Management ‹ Collaboration

Procure-to-Pay
Credit-to-Cash
Credit-to-Cash Travel & Expense
Financial Mgmt Management
Analytics

Financial Control
& Reporting

Governance
& Compliance Asset Lifecycle Mgmt
Cash & Treasury
Management Lease Mgmt
Real Estate Mgmt

‹ Business Process Models ‹ Service Oriented Architecture

Single
Data Model
Oracle Credit-to-Cash Solution
Accelerate Cash Cycle & Manage Revenue w/ Fiscal
Discipline

‹ Corporate Performance Management ‹ Collaboration

Customers Manage Customer Credit Banks

Manage Receive Pmt

Transact Invoice / Bill Receivables Write-
Write-off
Bad Debt Payment
Processors

Data
Manage Revenue Providers

Manage Customer Data Quality

‹ Business Process Models ‹ Service Oriented Architecture

Single
Data Model
Oracle Receivables
Solution Highlights

Increase Efficiencies Improve Cash Flow

• UI Enhancements • Deductions Management
• Credit Card Error Handling • Prepayments
• COGS & Revenue Matching (R12) • Receivables DBI (R12)

Age of Accountability*

Optimize Relationships Instill Corporate Discipline

• Refunding of Customer Credits • Automated Receipts Handling for
(Electronic Refunds) Credits
• Electronic Invoicing • Enhanced AR Reconciliation
• Daily Revenue Recognition (R12)

Source: Deloitte USA LLP CEO, James H. Quinley speaking at the FEI Summit in July 2005
UI Enhancements
Extreme Makeover AR Edition… before
UI Enhancements
…..and after
UI Enhancements
Extreme Makeover AR Edition… before
UI Enhancements
…..and after
Leveraging
BPA
Enhanced Receivables Reconciliation
Reconcile Your Receivables Easily and Efficiently

Create Your
Own Templates
Credit Card Error Handling
Drastically Reduce Error Resolution Time
Multiple Prepayment Types
Improve Cash Flow with Flexible Payment Options
 XML and E-Commerce Gateways
Enable E-Commerce with Electronic Invoicing

XML Gateway E-Commerce Gateway

9 Real-Time 9 Batch Processing

9 Event-Based 9 EDI Formats:
9 Single Transaction • 810
Oriented • 812
9 All DTD Based XML
Standards Support

• Invoices • Invoices
• Credit Memos • Credit Memos
• Debit Memos Oracle Receivables • Debit Memos
• Chargebacks
• Deposits
Receivables DBI (R12 Time Frame)
Enabling Better and Faster Decision-Making
Oracle Credit-to-Cash Solution
Make Informed Credit Decisions Faster

Manage Customer Credit

Manage Receive Pmt

Transact Invoice / Bill Receivables Write-off
Write-off
Bad
Bad Debt
Debt

Manage Revenue

Manage Customer Data Quality

Credit Management
Streamline the Credit Decision Process
Credit Policy Credit Credit Analysis Revenue & Risk
Management Application & Decision Management

Credit Policy &

Credit Policy via Modular Detailed & Summary
Scoring Model
Checklists On-Line Application Data Elements
Performance
Single Customer
Rules-based Credit
Scoring Models Credit Request API Master - Enterprise
Decision Approvals
Hierarchies
Credit Score
Auto Decisioning via On Demand or Workload
Calculation &

Case Folder
Automation Rules Event Driven Measurement
‘What If’ Analysis

Matrix Approach: Workflow Engine Revenue Risk

Analyst Notepad
Compliance
• Customer credit
classifications
Attach Images
• User-defined credit & Supporting Docs
review types

Credit
Recommendations

Seamless Dun & Bradstreet ® Integration

Facilitate Credit Analysis
Reduce Credit Decision Cycle Times and Costs

• Automatically Generate Credit Review

Requests
Upon Business Event
ƒ Term or trade credit application
ƒ Credit checking at order booking
ƒ On-demand or periodic credit review

• Create a Central Repository for

Viewing and Analyzing Time Critical
Data
– Up to minute status of credit request
– Scoring model & calculated credit score
– Time sensitive data points
– Analyst notes & electronic file attachments
Credit Management (R12)
Leverage Technology to Advance Business
Processes The Credit Research Foundation
survey found that: “Credit
executives expect the acceptance and application of
various technologies to help drive process
improvement and automate many of today’s tasks”

Increase Efficiencies
¾ Conditional Approvals
¾ Workload Balancing via Rules Engine

Improve Decisioning
¾ User-defined Data Points
¾ Multi-period Financial Data Comparison
Oracle Credit-to-Cash Solution
Configure, Present, Deliver Bills &
Invoices

Manage Customer Credit

Manage Receive Pmt

Transact Invoice / Bill Receivables Write-off
Write-off
Bad
Bad Debt
Debt

Manage Revenue

Manage Customer Data Quality

Bill Presentment Architecture
Customers Will Pay Bills They Can Understand

Customer • Create Customer

Transaction Focused Invoices
• Leverage Different Billing
Templates to meet
Presentment
customer needs
• Facilitate Customer PO
Reconciliation
• Retrieve Billing Data
From Any Data Source
• Offer Detailed Drill-
Downs
Tailor Customer Facing Documents

Attachments (Print in R12)

Feeder System Information

Detailed Drill Down

Flexible Rules for Template Assignment
Leverage Third Party Data

Add More Attributes From

a Pre-defined Attribute
List

New
New

New
Oracle Credit-to-Cash Solution
Streamline Collections and Issue
Resolution

Manage Customer Credit

Manage Receive Pmt

Transact Invoice / Bill Receivables Write-off
Write-off
Bad
Bad Debt
Debt

Manage Revenue

Manage Customer Data Quality

Oracle Advanced Collections
For Enterprise Value
Increase • Automate strategies Improve • Automatic delinquency
Efficiencies • Automatic work Cash Flow identification
assignment • Real time payment
• Payment / promise processing
dispute tracking • Promises reconciliation
• Inbound / outbound • Pre-delinquencies
email / call center
• Deductions resolution

Optimize • Cross-LOB Instill Fiscal • Customer value

Relationships customer view Discipline scoring
• Self-service • Customer segments
• Contact preference • Payment behavior
• Multiple contact • Propensity to pay
methods
• Collections lifecycle
Leverage Your Customer Data
Configurable Performance Metrics
Increase Collections Processes Efficiencies
Easily Configure For Your Business Rules (R12)
DBI for Collections (R12)
For Fast and Accurate Collections Decisioning
Offer Online Access to Receivables
Obtain Up-to-the Minute Account Status
The Credit Research Foundation
predicts: “customer self-service will expand
to include invoice research and payment, with a wide
proliferation and acceptance of such technologies as
Electronic Invoice & Payment Presentment (EIPP)”
Online Receivables
Offer Customers Self-Service

y User Registration Process

ƒ Self-service user registration process
ƒ Enable collectors to promote self-service account management
y Provide Online Invoice Presentment & Payment
ƒ Pay multiple invoices at once
ƒ Use one time credit cards
y Enable Online Disputes & Payment Scheduling
ƒ Initiate Disputes
ƒ Attach documents to transactions
y Offer Visibility to History & Current Status
Deductions Management
Quickly Resolve Disputes and Deductions
In partnership with Oracle Trade Management, Oracle
Receivables offers a robust and efficient deductions
management solution!

Deductions Involve: ROI Opportunities:

Trade promotions / claims
–
9 Reduce research cost
– Pricing errors
– Quality issues 9 Decrease deduction
volumes
– Post-audit activities
– Customer levied penalty charges 9 Increase automation
– Distribution & shipping 9 Facilitate resolution
discrepancies
 Oracle Trade Management
Simplified Set Up Available for Claims
Business Credit Magazine reported that "deductions are
a $10 billion a year problem that is growing annually by
20 percent.“ Invoice Accuracy Survey found that
deductions represent about 8.5% of total sales.

Claims
Set-Up
Area
Oracle Trade Management
Optimize Deductions Research and Resolution
Oracle Credit-to-Cash Solution
Manage Revenue with Fiscal Discipline

Manage Customer Credit

Manage Receive Pmt

Transact Invoice / Bill Receivables Write-off
Write-off
Bad
Bad Debt
Debt

Manage Revenue

Manage Customer Data Quality

Facilitate Revenue Policy Compliance
Recognize Revenue Based on Rules and Events
According to Executive Partner for
Grant Thornton, Edward E. Nusbaum, who
spoke at the 2005 FEI Summit, “revenue recognition is the
number one reason for restatements”

Time-Based Revenue Recognition R12:

• Ratably Over Time • Pre-Invoicing &
Post-Invoicing
• Upon Expiration of Contingencies Acceptance
• Proof of Delivery
Event-Based Revenue Recognition
• Payment
• Customer Acceptance
Rule-Based Revenue Recognition
• Payment Term Thresholds
• Refund Policy Thresholds
• Customer Creditworthiness
Facilitate Revenue Policy Compliance
Stay On Top of the Latest Guidance

Accounting Requirements for Services and

Subscriptions
¾ Revenue should be recognized on a daily basis starting with
the day the contract is signed, rather than at the first of the
month
News Alert July 13, 2004 - Red Hat, Inc.
announces changes to its revenue
recognition policy. The company will start recognizing
revenue on a daily basis.

New Accounting Rules (R12)

¾ Daily Revenue Rate can be applied to all or just partial
revenue recognition periods
Simplified COGS & Revenue
Matching Compliance

Automated COGS and Revenue Matching functionality

planned for R12
Introducing Oracle
Loans
Oracle Loans
Improve Probability of Collection with Flexible
Payment Plans

y Convert Delinquent Receivables into

Extended Payment Plans
ƒ Negotiate
ƒ Term, Rates, Payment Frequency, and Fees
ƒ Optionally Include Co-borrower(s) or Guarantor(s)
ƒ Review Amortization Schedules
ƒ Provide, Review, and Manage Approvals
ƒ Calculate Pay Off Amounts

y Offer Direct Business Loans If Necessary

The Integrated Loan Solution
• Standards to improve profitability
• Controls to mitigate risk
• Automation to streamline process
• Portfolio Reporting for improved
analysis

Origination Approvals Funding Servicing Collections

• Centralized • Mandatory • Notifications • Customer • Automated

customer, conditions • Integrated and loan delinquency
loan and for approval disbursement details at identification
financial • Rules for co- process fingertips • Cross-loan
information borrowers • Prioritized • Quick links views
• Online and funding to to common • Dunning and
applications guarantors control cash tasks strategy
• Configurable • Amounts for flow • Online plans
terms & collateral on statements
conditions secured • Payoff
loans processing
Your Loan Processing Dashboard
Loans (R12)
Extend Configurability of Direct Loans and
Repayment Plans

Enhance Business Process

¾ Automated credit decisioning
¾ Multiple disbursements (e.g.
construction and student loans)

Improve Controls
¾ Configurable loan products for
standardization
¾ Defaults in loan application to
streamline agent’s work
Oracle Credit-to-Cash Solution
Clean, Consolidate & Complete Customer
Data

Manage Customer Credit

Manage Receive Pmt

Transact Invoice / Bill Receivables Write-off
Write-off
Bad
Bad Debt
Debt

Manage Revenue

Manage Customer Data Quality

Customer Data Hub
Get a 360-Degree View of Your Customers
The real-time nature of the Oracle Customer Hub
Get a 360-Degree View
product not only ofusYour
enables to makeCustomer
decisions
quickly and consistently, but it helps us make very good
decisions based on accurate information."
—Scot Klimke, CIO, Network Appliance

Key Capabilities: Benefits:

360 Degree Customer Viewer

9 See all master and
transaction customer data

Extended Relationship
9 Indicate comprehensive
relationships for greater
Management clarity in reviewing
customer information
Customer Relationship 9 See all company and
consumer roles and
Visualization relationships
Oracle Credit-to-Cash
Complete, integrated set of apps for
credit-to-cash process; flexible invoice
presentment, data quality mgmt, Improve Cash Flow
collections strategies

Time, event & rules-based revenue

recognition; single view of enterprise
cash position; credit decisioning with Instill Fiscal Discipline
risk / revenue optimization

Automated credit, collections, and

deductions mgmt; strategic collections
Increase Efficiencies
prioritization; self-service payment &
account mgmt; customer data mgmt

Accurate customer data; timely credit

applications & decisioning; billing and Optimize Customer
invoice details matching customers Relationships
expectations; self-service
 Oracle Credit-to-Cash Offering
• Credit Management
• Order Management
• Projects
• Service Contracts
• Sales Contracts ‹ Corporate Performance Management ‹ Collaboration

• Lease Management
Procure-to-Pay
Procure-to-Pay
• Receivables Credit-to-Cash Travel
Travel &
& Expense
Expense
• Bill Presentment Architecture Financial
Financial Mgmt
Mgmt Management
Management
Analytics
Analytics
• Advanced Collections
Financial
Financial Control
• Trade Management: &
Control
& Reporting
Reporting
– Disputes & Claims Governance
Governance Asset
Asset Lifecycle Mgmt
• Loans Cash
Cash &
& Treasury
Treasury
&
& Compliance
Compliance
Lease
Lease Mgmt
Mgmt
Management
Management
• iReceivables Real
Real Estate
Estate Mgmt
Mgmt

• Payments
‹ Business Process Models ‹ Service Oriented Architecture
• Financial Intelligence
Single
• Customer Data Management: Data Model
– Customer Data Hub (“TCA”)
– Customer Data Spoke
– Data Librarian
For More Information
y Other Recommended Sessions
ƒ “Sneak Peak: Oracle E-Business Suite Financials Key
Initiatives for 2006” - Wednesday, September 21, 2005,
11am – 12 pm in Room 3020-West
ƒ “Leveraging Oracle E-Business Financials for a Fast
Close” - Thursday, September 22, 2005, 2:30-3:30 pm in
Room 3020-West
y Related Demos/Exhibits
ƒ “Credit-to-Cash” pod located in Oracle DEMO grounds
y See Your Business in Our Software
ƒ Visit Oracle Direct in the Oracle DEMO grounds for a
personalized proposal
y Related Web Sites For More Information
ƒ www.oracle.com
QUESTIONS
ANSWERS