Account NI Accounts Receivable Conference Room Pilot

(Oracle 11i CRP Instance)

Tuesday, September 5th, 2006 Thursday, September 7th, 2006

Agenda
Background Objectives CRP Exclusions Split of Services between the Departments and the SSC Key Architecture for Accounts Receivable Module Organisation Structure for CRP Static Data for Accounts Receivable Document Numbering High Level Business Process Scenarios including Oracle demonstrations Questions we have for you Next steps Roll Out

Feedback:

YOUR INPUT IS VITAL !! Please ask questions or raise issues Please use your Feedback Forms to record comments and return these via your Departmental Project Manager Email us at accountni.po@dfpni.gov.uk

Background
Completed Business Process Maps for Accounts Receivable (AR). Conducted internal prototype demonstration of AR to drive out detailed design solution. Conducted Debt Management workshop with Departments to establish a consistent debt management approach. Developed detailed functional specifications and layouts for Customer Statement reports and Dunning Letters (samples attached) Conducted detailed discussions on Inter-Departmental scenarios to identify AR configuration requirements to support this process. Visited a selection of Departments/Agencies (DARD, DENI, DETI, HSENI, DSD, Roads & Planning Service) to gain an understanding of their AR processes.

Objectives

To gain an understanding of the Account NI process design To assess the processes demonstrated against business critical requirements and identify gaps To progress to closure of the Common Footprint design

CRP Exclusions
The CRP demonstration does not involve the rigorous testing of the Oracle solution by Department end-users. The CRP demonstration is not a training session.

Split of Services between Departments and SSC:

Set up and maintenance of customers, and capture of debt Matching income received to debtors invoices, or processing miscellaneous income Create/Maintain Customer Standing Data Issue Invoice/ Credit Note Payments Received Credit Control

Perform Closing

Identify changes required. Approval DEPT

Determine who is to be invoiced. Credit note request. Approval Details forwarded to SSC

Payments made via local offices lodged promptly. Details recorded and forwarded to SSC.

Approval of write-off of debts

Receive and review monthly reports

DEPT DEPT

DEPT

DEPT

Key on details. Carry out credit check. Run customer daily listing. SSC

Key on details. OR Run interface. Print invoice/ credit note. Distribute. SSC

Receipts identified from bank statement Cash received at SSC Match receipts to debtors Code miscellaneous income to SSC revenue.

Issue statements Issue Dunning letters Identify potential bad debts SSC

Daily sweep to GL Month end closure SSC

Key Architecture for the Accounts Receivable Module:

GL Transfer

Oracle General Ledger

AO System (DFP)

Valuation Charges Receipt details Oracle Cash Management

Bank Statement Details inbound Dial (DFP) Telephone Call Charges Inbound Interfaces to AR

Oracle AR (MultiOrg Model)

Autolockbox / Direct Debit Transactions

Banking Provider

Point of Sales (OSNI )

Sales Transactions Print Invoices, Credit Notes

Customer Statements Dunning Letters

Department Systems (Interfaced into AR )

Custom Developments

Organisation Structure for CRP1 Environment:

Oracle Configuration Definition

Agreed Multi-Organisation Structure

- Organisation - Cost centre - Account Code - Analysis Code 1 - Analysis Code 2 - Analysis Code 3 - Spare

Common Set of Books

NICS

Common COA (7 Segments)

Operating Units (Departments)

DSD

DFP

Balancing Entities (Organisation)

DSD Core

DSD CSA

DFP

Static Data for Accounts Receivable

Customers The person or organisation you sell products or services to. Remittance Bank The Bank Account used to remit payments one bank account per Department for CRP. Payment Terms Receivables let you define standard payment terms for your customers to specify the due date for their open items e.g. Net 30 days - most will be 30 days but can be changed as and when required. VAT Codes Tax codes can be amended as and when necessary e.g.17.5%, Exempt. The VAT codes default at Customer Site Level.

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Document Numbering

Invoice numbers will begin at 10000000 for DFP, 20000000 for the next Dept or Agency. Thus all Departments/Agencies will have their own 8 or 9 digit ranges for invoices.

All Receipt Numbers will be manually generated except for Direct Debit and Autolockbox receipts which will be automatically generated.

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High Level Business Process Map For AR

Create Customers Enter Invoices Apply Credit Notes against Invoices Bank Statement Reconciliation

Apply Receipts against Invoices

Post to General Ledger

Record Misc Receipts

Reporting

CM process highlighted in green

Perform Debt Management Activities

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Scenarios To Be Demonstrated
Number Scenario Customers 1 Create New Customer 2 Amend Customer Record Details Sales Invoices 3 Invoice Creation and Completion (single invoice & batch) Intra Departmental Transactions Credit Note Processing 4 Creation of a Credit note - Full and Partial Receipting Payments 5 Process Receipts for Debtors (includes applying the receipts to invoices) 6 Process Receipts for Miscellaneous Payments 7 Automatic Receipts and Remittance Processing

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Scenarios To Be Demonstrated
Number Scenario Receipts 8 Reallocation of Receipts 9 Reversal of Receipts 10 Generation of the Receipt Register report Debtor Management 11 Record Customer Calls 12 Generate Aged Debtor Report 13 Generate Customer Statement Report 14 Generate Dunning Letters GL Transfer & Period End 15 GL Transfer & Period End Processing Additional Reports 16 Run Additional AR Reports

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Scenario 1 Create New Customer

This scenario demonstrates the creation of a new customer that includes the following conditions: Branch/Dept (Requestor) Branch Requestor ensures customer doesnt already exist for their Department. Branch Requestor completes a Customer Creation Form and sends it to the SSC AR Team. SSC Credit Controller Credit Check performed by SSC: - check against judgments - check against NICS records

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Scenario 2 Amend Customer Record Details

This scenario demonstrates updating an existing customer record on the system. This action may involve changing existing customer details or making a customer inactive. SSC AR Inputter AR Inputter updates customer details in Accounts Receivable SSC AR Approver AR Approver checks customer record against daily Customer Listing - Detail report to review amended details

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Scenario 3 - Invoice Creation

This scenario demonstrates the creation of an invoice for an external customer. Invoice Request (Branch) Invoice Creation (SSC) Invoice Approval and Distribution (SSC) Branch/Dept (Requestor) Branch/Dept completes Invoice Creation Form detailing items to be invoiced and forwards to the AR section in the SSC SSC AR Inputter/Approver Invoice is created in the SSC and distributed to customer

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Scenario 3 Intra-Departmental Invoice

This scenario demonstrates the creation of an intra-departmental invoice using DSD Core as the supplier and DSD-CSA as the customer. DSD Core Raises Request for an Intra-Departmental Invoice and Issues to SSC SSC AR Inputter AR Inputter creates invoice in Accounts Receivable and invoice number is generated

SSC Approver AR Approver checks and approves invoice details on the Oracle system

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Scenario 4 Creation of a Credit Note

This scenario demonstrates the creation of a credit note in AR.

Branch/Dept
Requestor in Branch completes a Credit Note Request Form

SSC AR Inputter
AR Inputter processes a credit memo

SSC AR Approver
AR Approver runs Credit Note Listing Report and checks credit note details against Branch request form Credit Note is approved Customer account is credited

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Scenario 5 Process Receipts for Debtors

This scenario demonstrates entering a receipt for a payment received from a customer. Payments to a Department or Agency will be remitted directly to the SSC. SSC AR Inputter AR Inputter enters receipt in Accounts Receivable and matches against invoice (receipt is then applied).

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Scenario 6 Process Miscellaneous Receipts

This scenario demonstrates the processing of receipts where no invoice has been issued.

SSC AR Inputter
AR Inputter enters receipt in Accounts Receivable and codes to the appropriate income code miscellaneous code AR Inputter balances to lodgement sheet AR Approver checks and approves lodgement

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Scenario 7 Automatic Receipts & Remittance Processing

Enter Invoices

Create Automatic Receipts

Approve Automatic Receipts

Format Automatic Receipts

Receipt Processing

Create Remittances

Cash Mgt reconcile receipts Approve Remittances

Bank sends Bank Statement to SSC

Send Remittance file to bank

Format Remittances

Remittance Processing Bank Statement Remittance File

Bank Interaction

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Scenario 7 Automatic Receipts and Remittance Processing This scenario demonstrates the use of the Accounts Receivables automatic receipts feature to
automatically generate receipts for customers with whom you have predefined agreements. These agreements let you collect payments on time by transferring funds from the customers Bank Account to Dept Bank Account on the receipt maturity date.

SSC AR Inputter
Select the invoices to include in your automatic receipts Create the automatic receipts Remit your automatic receipts Format your automatic remittances before sending to the bank, to initiate the transfer of funds from Customers Bank Account to Dept Bank Account

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Scenario 8 Reallocation of Receipts

This scenario demonstrates a receipt being incorrectly applied against an invoice, then being reapplied against the correct one.

Branch/Dept
Department notifies the SSC to apply monies to correct invoice

SSC AR Inputter
Receipt is unapplied against incorrect invoice and reapplied against correct invoice

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Scenario 9 Reversal of Receipts

This scenario demonstrates the reversal of a receipt.

SSC AR Inputter
AR Inputter reverses original receipt

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Scenario 10 Generation of Receipt Register Report

This scenario demonstrates the generation of the Receipt Register Report.

SSC AR Manager
AR Manager generates the Receipt Register Report to be used to reconcile lodgement slips to the receipt batches processed in system

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Scenario 11 - Record Customer Calls

This scenario demonstrates the Customer Calls process in Accounts Receivable. This scenario includes Details about the conversation are entered onto the System to create a record of the call The Customer Calls function can also be used to record disputed items and to review previous calls

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Scenario 12 Generate Aged Debtor Report

This scenario demonstrates the generation of the Aged Debtor Report using defined aging buckets. Receivables lets you view your customers outstanding account balances by aging buckets. Aging buckets are time periods in which you age and review your debtors items.

AR Manager
Aged Debtor Report is run as required Aged Debtor Report used by SSC AR manager to produce debtor analysis Aged Debtor Report generated for Department and sent out in soft-copy format to the Finance Managers

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Scenario 13 Generate Customer Statement

This scenario demonstrates the generation of Customer Statements.

SSC AR Inputter
Generates Customer Statements in the System This is carried out on a monthly basis Customer account details are updated to reflect the Statement issue Statement is printed and distributed to customer by SSC

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Scenario 14 Generate Dunning Letters

This scenario demonstrates the running of the Dunning Letter program. Receivables provides a Dunning Letter set which includes Dunning Letters of increasing severity.

Cost Centre Manager

Aged Debtor Report sent to Department Managers Department advises AR approver in SSC of any Dunning Letters that should not be issued

SSC AR Approver
AR Approver runs Dunning Letter Preliminary Report AR Approver authorises and generates Dunning Letters

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Scenario 15 GL Transfer & Period End Processing

This scenario demonstrates the running of the General Ledger Transfer program to post AR transactions to the GL Debtor Balance and Income Accounts.

SSC AR Manager
AR Manager runs the Accounts Receivable General Ledger Transfer program. This program is run daily

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Scenario 16 Additional AR Reports

This scenario demonstrates the running of Standard Oracle Accounts Receivable Reports.

Standard AR Oracle Reports

Transaction Register - provides details of invoices and credit notes raised on the system Unapplied Receipts Report Lists receipts that have been received but not applied to a debtors invoice or income line Incomplete Invoices report Lists invoices that have not been processed Customer Listing Detail Provides details of customers set up on the system

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Questions we have for you:

Can you provide a classification of the different types of miscellaneous payments (no invoice issued) your Department deals with.e.g. ticket sales, pamphlets, etc.. Is there any critical information missing from the standard Oracle screens demonstrated? Are there any additional scenarios we have not covered in CRP1 you would like addressed as part of CRP2? In order to assist with the system configuration process, we need to obtain from you details of some key master data: Standard Memo Lines Salespersons Customer Profiles

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NEXT STEPS
Any queries or issues that you have not raised today should be forwarded to your DPM on the forms provided. Feedback must be returned by DPMs to Account NI no later than 22/09/06. Account NI Collate and log all issues/requirements (all new requirements must be
fully justified)

Review, assess and confirm CRP2 sessions

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ROLL OUT
Department
Wave 1 Wave 2 Wave 3 Wave 4 DFP OFMDFM DETI DEL DSD DHSSPS DARD DE DCAL DRD DOE ROADS

Go live date
4 June 07 1 Oct 07 4 Feb 08 2 Jun 08

Wave 5

6 Oct 08

Wave 6

1 Dec 08

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