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REMINDER

Check in on the COLLABORATE mobile app

Merging Newly Acquired Companies into Oracle EBS

Prepared by:Alan Green Oracle EBS Practice LeadandDavid DozierSenior EBS Consultant Emtec Inc.

Session ID#: OAUG - 10293

Alan.Green@Emtecinc.com

David.Dozier@Emtecinc.com

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73%

YEARS

46serving clients

OUR COMPANY

500dedicatedassociates

19over

years

BESTPLACES

TO WORK

TECHNOLOGYEMPOWERED

BUSINESSSOLUTIONS

“right size provider”

“client for life”

IndiaPune

Bangalore

USAIL, PA, NJ, GA, VA, MN, FL

CanadaTorontoOttawa GLOBAL

DELIVERYOUR SERVICES

87% 14

prior tier 1consultancies

avg yearsexperience

fulltimeemployees

OUR PEOPLE

25+OTHER

PARTNERS

- onshore - offshore - nearshore - blended

managed services

ManagementConsulting

Applications Cloud Analytics Infrastructure

strategy,governance,

process

ERP, HCM, CRM,app. development,

mobile solutions

applications,infrastructure

enterprise reporting,predictive analytics,

big data

service management,enterprise infrastructure,

end user computing

Business and Technology Empowered

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Presentation Agenda■ Project Manager Perspective

▪ Project Planning and Execution— Transition Services Agreement (TSA)

— High Level Discussions with Internal & Acquired Company Personnel

— Develop High Level Solution Design, Project Plan, Resource Plan

— Implementation Approach and Production Cutover Plan

■ EBS Lead Consultant Perspective ▪ Solution Design

▪ Data Conversions / Mapping / Reconciliation

▪ EBS Applications Setup and Configuration

▪ Systems Integration

▪ EBS Extensions and Reports

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Project Management Perspective

■ Project Management of Merger and Acquisition Projects ▪ Get IT Business Apps into the Transition Planning meetings

— Need input into Transition Services Agreement (TSA) and Timeline

— Need to know who the key people are at the Acquired Company

— Need to understand their Systems Footprint and Architecture

▪ Once the Merger and Acquisition goes Public — Start High Level Discussions with Acquired Company Personnel

– Review Business Processes and System Functionality use

– Perform Gap/Fit Analysis ; look for custom extensions

— Start High Level Discussions with internal Business Mgmt

– Get Direction on how they want the new company integrated

— Develop High Level Solution Design

— Develop High Level Project Plan, Timeline, and Resource Plan

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Phases of Merger and Acquisition Projects■ Project Phases follow typical ERP Project Lifecycle

▪ Analysis and Requirements Gathering

▪ Solution Design

▪ Solution Build

▪ Conference Room Pilot Testing

▪ User Acceptance Testing

▪ Production Cutover Testing

▪ Production Cutover

▪ Go-Live

▪ Production Support

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Implementation Approach

■ 3 C’s of Oracle EBS ▪ Calendar

▪ Currency

▪ Chart of Accounts

The 3 C’s are the base components of setup for a new Ledger.

If a new Company has the same 3 C’s as the existing Ledger,

the new Company can be added into the existing Ledger.

If the new Company does not have the same 3 C’s,

a new Ledger must be setup for the new Company.

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Implementation Approach

■ 3 C’s of Acquisition Integration Projects▪ Configure

— Setup and configuration can be done early and turned on as needed in most cases

— There may be some setups that require the converted data

▪ Close— The source system must go thru a month end accounting close and

detailed financial reports produced for all subledgers and ledger

— The target system should go thru a soft month end accounting close and detailed financial reports produced for all subledgers that data will be converted to

▪ Convert— Data conversion should start immediately after Close is complete

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Production Cutover Plan

■ What is it?▪ Organization Tool

— Structured, Ordered List of Steps and Tasks to Complete for Go-Live

— Every task should be assigned to a person to complete

— Tasks should have a name/desc. and estimated duration to complete

▪ Communication Tool— E-Mail to project team when cutover starts to kickoff the process

— Person performing first task(s) should start and respond to all when complete so next person can begin their task(s)

— Communication and handoffs should continue until all tasks complete

▪ Project Management Tool— Allows cutover to be closely monitored - status updates can be made

— Allows progress to be measured against the schedule and adjustments made if needed

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Solution Design

■ High Level Discovery Sessions ▪ Controller

— Company Structure

— Chart of Accounts Review

– GL Segment Value Mapping

– Intercompany Accounting Rules

– Consolidation Requirements

– High Level Discovery Sessions

■ Accounting Systems Analysis ▪ Oracle EBS to Oracle EBS

▪ Other ERP to Oracle EBS

■ Business Process Review and Gap/Fit Analysis ▪ Current process

▪ New process

▪ Process changes identified, impacts

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Solution Design

■ Human Capital Management (Payroll/Time and Labor)▪ Employees – are employee numbers duplicated

▪ Number of Payrolls and respective schedules (keep separate or merge?)

▪ Is Payroll EBS - Or 3rd Party?

▪ Time Card Mgmt.— Do all employees enter timecards?

— Union Env.? Different Union Rules?

▪ Absence Mgmt. — Are Vacation and PTO plans different? Which ones will remain?

▪ Benefit Mgmt. – Configure in EBS or 3rd party (interface)

▪ Talent Mgmt. – Configure in EBS or 3rd party (interface)

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Data Conversion

■ Data Mapping▪ Data Mapping required if source system is not Oracle EBS

▪ Data Mapping is time consuming and requires work from SME’s

▪ Start early, allow plenty of time, build checkpoints into the plan

■ General Ledger▪ GL Balances

▪ Conversion periods that will be used

▪ Conversion type – journal detail or balance detail or combination— Ex. Journal details for 2 years – GL Balances after that

▪ Determine requirements for any system changes prior to conversion work being done. — Open GL periods – periods for conversion need to be open

— Journal posting

— Reconciliation approach and requirements

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Data Conversion

■ Accounts Payable▪ Suppliers and Supplier Sites

— 1099 requirements

— Supplier de-duplication

— Address cleanup (sales / use tax calculation impact)

▪ Invoices— Determine if you will convert open invoices or use alternatives:

– Pay invoices out prior to conversion – eliminating open invoices

– Manually convert – data entry – based on volume and resources

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Data Conversion

■ Receivables▪ Customers, Addresses, Contacts

— Address cleanup (sales tax calculation impact)

— De-duplication as required

— Limit to open balances or other requirement for what customers get converted.

▪ Invoices— Open AR invoices (determine need for any historical invoices without

a balance).

▪ Unapplied Cash Receipts

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Data Conversion

■ Purchasing▪ Purchase Orders

— Volume to determine if automated or manual

▪ Blanket Purchase Orders— Volume to determine if automated or manual

— Price comparison between companies to determine new blankets or combination of blankets for better pricing with vendors.

▪ Open PO Receipts— You have to weight this out for 3-way matching for AP invoices.

— Automated conversion given the impact to doing this manual

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Data Conversion

■ Inventory▪ Items

— Mapping requirements

▪ Stock Locators— Used or not?

— Mapping requirements

▪ Subinventories

▪ On Hand Qty and Balances— Costing method – LIFO, FIFO, Average Costing – accounting

differences

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Data Conversion■ Fixed Assets

▪ Determine what periods the conversion takes place in — Consider retirements and additional processing after the conversion

— This is specific to FA because of how certain transaction types are impacted based on period in which an asset is added or converted

▪ Group Assets — Must be done prior to individual Assets conversions, if applicable

▪ In Service Assets — Leased Assets?

— Exclude fully Retired Assets

— Partially retired assets – convert open cost not original cost.

— Determination of above if you need to convert retirements.

— Issues with group asset depreciation / reserve conversion

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Data Conversion■ Fixed Assets

▪ Asset Keys and other Key flexfield attributes

▪ Data Mapping Requirements— Asset Categories

— Locations

— Depreciation Methods - variances for potential accounting differences

▪ Depreciation Reserve / YTD Depreciation Expense— Convert for the related assets that are converted.

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Data Conversion■ Project Costing

▪ Projects— Mapping requirements

— Task structure

— Accounting variations

— Templates

— Capital Projects – Assets / Asset Lines

▪ Tasks — Mapping requirements

— Accounting requirements

— Capital / Retirement processing

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Data Conversion■ Project Costing

▪ Expenditure Organizations— Mapping requirements (cost centers, departments) and relationship

to Chart of Accounts.

▪ Expenditure Types— Mapping requirements

— Accounting requirements

▪ Open Project Balances— CWIP (Construction Work In Progress) – capital projects

– Current open CWIP

– Closed CWIP - history

— Non Capital projects

— Reporting Requirements

▪ Project Budgets

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Data Conversion■ Human Resources

▪ Employees and Employee Numbers

▪ Jobs / Assignments— Mapping requirement

▪ Grade / Grade Rates

▪ HR Organizations— Organization Hierarchy

— Mapping requirement

— Additional information

▪ Locations

▪ PTO Balances (Paid Time Off i.e. sick, vacation)

▪ Other benefit related balances

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Data Conversion Audit and Reconciliation■ General Ledger

▪ Actuals Balance conversion— Trial Balance

▪ Budget conversion— Trial Balance

■ Accounts Payables▪ Supplier Balance conversion

— Accounts Payable Trial Balance

■ Accounts Receivables▪ Customer Balance conversion

— AR Aging 7 Bucket Report by Account

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Data Conversion Audit and Reconciliation■ Inventory

▪ Quantity / Balance On Hand conversion— All Inventories Value Report

— All Inventories Value by Subinventory Report

■ Fixed Assets▪ Group Asset Cost balance

— Custom Report

▪ Group Asset Reserve balance— Custom Report

▪ Non Group Asset balance— Journal Entry Reserve Ledger Report

— Account Reconciliation Reserve Ledger Report

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Data Conversion Audit and Reconciliation■ Projects

▪ Open CWIP Balances— Custom Report

▪ Open RWIP Balances— Custom Report

▪ Project Balance Conversion balances— Custom Report

▪ Project Budget conversion— Custom Report

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EBS Applications - Setup and Configuration ■ General Ledger

▪ Accounting Setups (Legal Entity)

▪ GL Segment Values

▪ Balancing Segment Value assignment

▪ Intercompany / Intracompany Rules

▪ Journal Sources and Categories

■ Accounts Payable▪ Bank Accounts

▪ Payment Documents

▪ Reporting Entities (1099)

▪ Pay Groups

▪ Payment Templates (Payment Manager)

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EBS Applications - Setup and Configuration ■ Accounts Receivable

▪ Transaction Types

▪ DQM Synchronization (after customers imported / converted)

▪ Remit To Address

▪ Auto Accounting rules

■ Purchasing▪ Receiving Options

▪ Purchasing Lookups

▪ Buyers

▪ Requisitioners

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EBS Applications - Setup and Configuration ■ Inventory

▪ Locations

▪ Inventory Organizations

▪ Subinventories

■ Fixed Assets▪ Locations (values)

▪ Asset Keys (values)

▪ Categories (values) – might be converted depending on volume

▪ Depreciation Methods / Rates

▪ Prorate Convention

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EBS Applications - Setup and Configuration ■ Projects

▪ Transaction Sources

▪ Expenditure Organizations

▪ Org Hierarchy

▪ Expenditure Types

▪ AFUDC Schedule

▪ Burden Cost Codes / Structure / Schedule

▪ Allocation Rules

▪ Auto Accounting Rules

▪ Project Templates

■ System Administrator▪ Users

▪ Profile Options

▪ Printer Setup

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EBS Applications - Setup and Configuration ■ Human Resources

▪ HR Organizations

▪ Organization Hierarchy

▪ Jobs / Positions

▪ Self Service Access (employee / manager)

■ Payroll & Timekeeping▪ Timesheet Templates

▪ Pay Codes

▪ Timecard Approval

▪ Time Entry Rules

▪ Other benefit related rules and withholdings

▪ Payroll system integration for various master data values and lists

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EBS Applications – Systems Integration ■ General Ledger

▪ Custom interfaces into Oracle GL that needs to be reviewed for account mapping decisions. (i.e. CIS or Customer Billing system)

■ Accounts Payable▪ Payment processing

— Check format (XML, Optio, Evergreen)

— Electronic payment processing

— Bank file integration

– Positive Pay

– Cleared Checks

▪ Invoices— Supplier EDI

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EBS Applications – Systems Integration ■ Accounts Receivable

▪ Billing System Interface— Revenue recognition, Cash Receipt processing

▪ Bank Interfaces— Lockbox Interface

■ HR/Payroll/Time and Labor▪ HR to 3rd Party Payroll

▪ HR(or Payroll) to 3rd Party Benefits

▪ HR to LDAP or other IT systems

▪ HR to 3rd Party Work Management System

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EBS Applications – Systems Integration ■ Work Management System

▪ Project and Task related – Work Order mapping

▪ Financials – actuals integrated back?

▪ Integration to Purchasing — Requisitions

— Purchase Orders

▪ Integration to Inventory— Items

— Material Reservations

▪ Compatible Units Mapping (Assets)

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EBS Applications – Extensions and Reports■ Acquired Company may need other RICE items to

provide specific functionality currently in use that is not in Oracle EBS

■ Extensions▪ Custom Forms

▪ Custom Processes

▪ Custom Alerts

▪ Custom WorkFlows

■ Reports▪ Oracle Reports

▪ Discoverer Reports

▪ Business Intelligence Reports

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Questions and/or Comments

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