1 © Hitachi Data Systems Corporation 2012. All Rights Reserved.1

GLOBAL PTP-SO MANY COUNTRIES, SO LITTLE TIME…

Carl HarterSr. Director – Procurement and Travel

Priya Tivare Sr. Manager – Procurement Programs & Reporting

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AGENDA

Overview

Planning

Implementation

Training

3

QUICK OVERVIEW

Current Setup‒ How many OUs? 23

‒ Multi language or English? English

‒ Multi Currency? Yes

‒ Actual version? 12.1.3

‒ Modules installed/used – ‒ US/CA – PO, AP, iProc, and iExpense

‒ EMEA - Core/Std. PR/PO, AP, iExpense

‒ APAC – Core/Std. AP, iExpense

‒ Setup for all employees (6000), but only about 400 concurrent users.

4

PLANNING

In FY 12 (Apr-Mar) HDS to add the following:‒ US/CA – ‒ Automatic routing and approval via HR hierarchy

‒ iExpense integration for Pcard and Travel Card.

‒ 3 Way Match for Goods and Services

‒ EMEA – ‒ iProc for 17 entities

‒ APAC – ‒ PO and iProc for 10 entities

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IMPLEMENTATION

Focused on US/CA first – represents over 80% of global activity and spend

PTP team – responsible for design and testing of design - consists of Procurement Program Manager (Priya), Systems Specialist (reports to Priya), IT developer, Business Analyst (AP).

Business users get involved during UAT and are asked to complete specific tasks within a given timeframe.

6

TRAINING

Focused primarily on Change Management - “Why are we doing what we are doing?”

Hands On Training…

7 © Hitachi Data Systems Corporation 2012. All Rights Reserved.7

HDS GLOBALPROCUREMENT PROCESSTRAINING

NOTEHow you can comply with

HDS’s Global Procurement Policy

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OBJECTIVE

To communicate HDS procurement culture and to ensure that you fully

understand the logic & impact of:

Submitting Purchase Requisitions (PRs)

Who creates Purchase Orders (POs) and why

The purpose of Receiving your goods or services

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OVERVIEW

Why are you here?

To understand the key elements of HDS’ new procurement policy

To learn how to create requisitions and receipts using Oracle iProcurement

To recognize how your actions using Oracle iProcurement affect the whole purchasing process at HDS

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OVERVIEW

EMEA Statistic

s

Invoices processed: 2850 per month

Expenses processed: 1400 per month

Number of s

uppliers:over 6

000!

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OVERVIEW

Terminology

VENDOR = SUPPLIER

PROCUREMENT = PURCHASING

PO = PURCHASE ORDER

PR = PURCHASE REQUISITION

iProc = Oracle iProcurement

Oracle PO = Oracle Purchasing

P2P / PTP = Purchase to Pay

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OVERVIEW

Purchasing is the formal process

of

buying goods or services

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PROCUREMENT

Procurement is subject to HDS corporate policies

Procurement is planned and controlled

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NEW GLOBAL PROCUREMENT POLICY

Policy Highlights

All spend must be pre-approved before any commitment is made to the supplier

All suppliers must quote a “PO” number on their invoice unless they are an approved exception

HDS standard payment terms are 45 days or longer

We pay by Electronic Funds Transfer (EFT)

All HDS required documentation to be completed:‒ Contracts, Statements of Work (SOW), HR Requisition etc

‒ Standard HDS Contracts are found at: http://hdsnet.hds.com/procurement/

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WHAT ARE THE “EXCEPTIONS”?

An “exception” is spend that does not require a Purchase Requisition / Order to be raised

All “exceptions” must be reviewed and approved as such byyour finance leadership

UtilitiesLegal HR

Insurance Rents

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NEW SUPPLIER SET UP

New Supplier Form

Authorization

Supplier Set Up

(SSC)

Purchase Requisition /

Order Process

• FULLY COMPLETED

• PRIOR to ORDERING

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NEW SUPPLIER SET UP

Considerations

Will this supplier be used on an on-going basis?

Do we already have a preferred supplier in place?

Make sure the supplier has been set up or . . .

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PURCHASE REQUISITION / PURCHASE ORDER

Why do we use an order?

Best business practice

Creates a legally binding contract between HDS & the Supplier

Invoices received that do not

reference a PO number will be returned to the

supplier

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PURCHASE REQUISITION / ORDER

Supplier Inquiry

Oracle iProc Requisition

Requisition Approval

Oracle PO sent to Supplier

A PR is only a REQUEST

-How you create

your PR determines how

HDS will be invoiced

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PURCHASE REQUISITION /ORDER

GOODS

• Use GOODS for tangible items

• When you need a specific number of items

Quantity

100 items

Unit Price

$10 per item

$1000 total

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PURCHASE REQUISITION /ORDER

SERVICES• Use SERVICES for undefined

purchases

• Where the quantity is the total cost or based on an estimate

Quantity is total value,

1000

Unit Price defaults to $1

$1000 total

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SPEND CATEGORIES

Category Account code

Reporting & Accounting

HDS is striving to standardize how we account for items we buy on a global basisThis will deliver significant savings as it allows us to generate accurate reports

iProc assumes you might not be an accountant

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APPROVALS

What the policy says . . .

$ Value ofmaximum value

Approval required from requestor’s

management

Approval required from

finance

Notification to Corp

Corporate Controller

Approval required for all

Capital Purchases

$100,000(€75,000)

Manager Business Unit / Country

Controller (Ben Post, Tung Wang Sung & Lode Roggen)

NO

Fixed Asset Manager or Authorized Delegate

$250,000(€185,000)

Manager & Director

$500,000(€370,000)

Manager, Director & Country

Manager/VP Business Unit Controller &

CFOYES

Over $500,000(>€370,000)

Manager, Director, VP, Country

Manager/VP & C-level Exec

Your country’s finance leadership is able to interpret the above to suit local needs whilst in compliance with the above requirements e.g., Your country controller may want to

reveiw/approve all PRs above $2,500

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APPROVALS

Indirect Cost center

Approval hierarchy maintained by Corp

HQ

Direct Purchase Type

Approval hierarchy hard-

coded

OLD

WA

Y

Oracle HRRequestor & Requestor’s Management

Approve

Approval automatically routes in compliance

with policy

NE

W W

AY

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RECEIVING

PO=20Receive

15 (physical)

Invoice = 20

Receive 20 in

OracleOverpay 5

NO RECEIPT RECORDED IN ORACLE

One month later we receive the invoice in SSC AP for input & payment

SSC AP contacts requestor and asks them to receive into Oracle

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RECEIVING – SHORT DELIVERY

PO=20Receive

15 (physical)

Invoice = 20 Credit 5

One month later we receive the invoice in SSC AP for input & payment

RECEIPT RECORDED IN ORACLE AT POINT OF PHYSICAL RECEIPT

The supplier should be contacted by the requestor and advised that they have over charged

A credit should be requested – until this is received, the invoice will not be paid [it will be ‘held’ in the system] The credit note should reference the PO number AND invoice which it is to be credited against

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RECEIVING

PO receiving is a control to ensure what has been physically received matches what we are subsequently charged for

The physical receipt of goods/services ‘triggers’ a liability

An invoice will be ‘held’ from payment in the system until PO receipted and a ‘match’ occurs (3 Way match).

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INVOICE PROCESSING

Invoices

SSC

NO

YESPO NUMBER

EXCEPTION

PO MATCH

MANUAL MATCH

YES

NO

RETURN TO SUPPLIER

WITH A REJECTION LETTER

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ORACLE TIPS: DESCRIPTION

Be very clear when entering a description to avoid errors and so as approvers know what they are

approving

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ORACLE TIPS: NEED BY DATE

Need-By Date is very important as this enables us to

close the PO

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YOUR TURN

We are now going to demo some PRs and receipts and thenit’s your turn!

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YOUR TURN

For the purposes of training use“NL EDC Requisitions (Full Access)”

Normally for Belgium you wouldUse “BE” and for Amsterdam“NLBV”

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EXERCISE 1 – CREATE A PR

• Create a new requisition

• 400 x “Sumo Wrestler” Stress Balls

• Price is $0.36 each

• Part number x1234x

• Requestor is Ralph Randle

• Need by date is 15th August 2013

• Supplier is “Promo.nl”

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EXERCISE 2 – CREATE A PR

• Create a new requisition

• Logistics consultant for project windmill

• Price is €11,000

• Requestor is Paul Dalderop

• Change the cost centre to 621.0000.00.000

• Need by date is 15th August 2012

• Supplier is “A&O Systems + Services Netherlands BV. ” based in Utrecht

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EXERCISE 3 – RECEIPT A PO

• Receipt a PO

• Ben/Zak will give you POs to receipt against

• Receipt 15 items only

• Leave a note that you are receipting on behalf of Zakia

• Now tell Ben and Zak how many items are left still to receive

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EXERCISE 4 – RECEIPT A PO

• Receipt a PO

• Ben/Zak will give you POs to receipt against

• Receipt €2000.00 only

• Leave a note that you are receipting on behalf of Ben

• Then add another receipt to the same PO for €1500.00

• Now tell Ben and Zak what the current “open value” of the PO is

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NOW DO THE QUIZ & SURVEY PLEASE!

HTTP://WWW.ZOOMERANG.COM/SURVEY/WEB22G9RVBZ9AT

3838

QUESTIONS AND DISCUSSION

THANK YOU