The document summarizes updates to Oracle's contracts management software in Oracle Release 12 (R12). Key updates include improved tools for managing renewals through flexible assignment rules and an administration workbench, enhanced revenue recognition capabilities, and increased functionality for standardizing contract coverage across multiple agreements. The summaries highlight improved functionality for streamlining contract administration and reducing financial risk.

1. OAUG Contracts SIG Meeting
Host: Mohan Dutt, VeriSign Inc
SIG Chair: Chiranjib Sarkar, Quantum Corporation

2. Agenda
• OAUG Announcements
• Contracts SIG – Charter & History
• EBS Service Contracts Update - Susan Flierl &
Ramesh Iyer, Oracle Corporation
• Introducing Fusion Contracts – Vijay Rajkumar,
Oracle Corporation
• Q&A

3. OAUG Announcements
• OAUG Appreciation Reception will be held on
Wednesday, September 22nd from 6-8pm at the
Weinstein Gallery, 301 Geary Street (at Powell, Union
Square). This event is sponsored by IBM. Please visit
the OAUG kiosk, Moscone West – Level 2, to obtain
your wrist band for entry.
• Visit the OAUG kiosk, Moscone West – Level 2, to
learn more about the comprehensive member
benefits offered by OAUG. Register for your chance
to win an iPad through iPad-A-Palooza!!!

5. Contracts SIG – Charter & History
• Contracts SIG covers mainly Oracle E-Business Suite
Contracts related modules.
• Currently SIG has 385 OAUG members & 279 LinkedIn
members.
• SIG Charter and History:
– Formed in 2004 and for more details visit
http://contractsig.oaug.org
– Winner of OAUG Certificate of Distinction in 2007 & 2009
• Plan for 2010-2011
– Work more on web conferences
– Form next Contracts SIG Board

6. 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 decisions.
The development, release, and timing of any
features or functionality described for Oracle’s
products remains at the sole discretion of Oracle.
6

7. <Insert Picture Here>
Oracle EBS Contracts Development Update
Ramesh Iyer Susan Flierl
Director Development Product Strategy Director

8. Oracle Contract Lifecycle Management
• WHAT – A family of contract
applications designed to author and Project Service
manage the lifecycle of all contract Contracts Contracts
types
• HOW – Deployed integrated with order- Procurement Sales
to-cash and procure-to-pay flows or as Contracts Contracts
standalone application
Contract
Terms
• RESULTS - Improve visibility of all Library
business agreements, reduce contract
cycle time, and manage risks Contract Repository
*Standalone product coming soon 8

9. R12 Momentum
Number of EBS Service Contracts customers
with bugs logged on R12+ releases
40
35
30
25
20
15
10
5
0
R12 R12.1
9

10. How to get there
Service
Contracts
Sales
Contracts
Core Contract
Contracts Repository *
Procurement
Contracts
R11i7 R11i8 R11i9 R11i10 R12 R12.1
* Contracts Repository included in Sales & Procurement Contracts license
10

11. Oracle Service Contracts
R12 & R12.1 Release Overview
Uplift renewal rates
– Improved customer experience with Flexible Assignment Rules for
Customer Communication Templates and Online Acceptance Portal
Enhancements
– Faster renewal cycle times with Service Contracts Administration
Workbench
– Improved renewal rate analysis with Service Line and Covered Level
Cancellation
Reduce financial risk
– Standardize customer coverage with Standard Coverage Definition
– Improve revenue recognition compliance with Partial Period Revenue
Recognition and Defer Revenue for Customer Acceptance Contingencies
– Secure customer payment information with Credit Card Security
Streamline contract administration
– Provide global contract administration tools with Multi-Org Access Control
– Improved service contract visibility when managing customer’s assets
11
11

12. R12 Standard Coverage
Description
• Define ‘Standard Coverage’ terms for a service
• Service line references a ‘Standard Coverage’ definition
• Coverage terms are no longer instantiated for every service line
• Customize coverage to meet specific customer needs
• Coverage can be instantiated for a service line on a contract
• Quickly roll out changes to coverage policies
• to all contracts Changes to coverage terms are immediately visible
to all contracts referencing the standard coverage
• to new contracts New coverage policies in effect for new contracts
only
• Changes to standard coverage policies are not reflected in instantiated
coverage terms
12

13. R12 Standard Coverage
Benefits
• Easy to roll out policy changes
• Contract coverage that references a standard definition can easily
be changed to suit policy changes
• Roll out to all affected contracts is carried out implicitly
• Creation of new offerings is easy
• New coverage offerings can easily be created from existing
offerings
• Improves performance
• Actions such as copy & renew perform better for standard coverage
since records are no longer needlessly stored against each contract
line
13

14. Standard Coverage
Customizing Coverage for a Service Line
Coverage Details Form
Press ‘Customize’ to update
coverage terms for the contract
Authoring Form – Effectivities tab
‘Standard’ checkbox is
unchecked & ‘Reapply Standard’
button is enabled after coverage
is customized for a service line
14

15. R12 Administrator Workbench
Description & Benefits
• A configurable workbench that enables sales reps to easily track
progress of open service contracts
– Notifications Bin: Allows users to view their workflow notifications
– Simple and Advanced Search: Allows users to quickly search for
renewal and new contracts
– Shortcuts: Administrators can use the workbench for other activities
such as authoring new contracts
– Seeded Bins: Workbench has been seeded with bins that enable
users to view contracts in various stages of negotiation
– Administrator Actions: Available from the My In Process Contracts
Bin that allow the administrator to take actions on selected contracts
• Increases Contract Administrator efficiency by providing a single
place to view and act on in-process contracts
• Improves usability through consolidated, personalizable views of
contracts in-process, and drilldowns to contract details
15

16. R12 Administrator Workbench
Benefits
• Increases Contract Administrator efficiency by providing a
single place to view and act on in-process contracts
• Improves usability through consolidated, personalizable views
of contracts in-process, and drilldowns to contract details
16

17. R12 Service Contracts Administration Workbench
Quick search for your new and renewal contracts
Displays your open contracts
17

18. R12 Service Contracts Administration Workbench
Personalized view of a service sales rep’s contracts
• Manage
renewals pipeline
• Update status
and forecast data
• Launch contracts
to Online portal
• Mass update
capabilities
• Email/print quote
• Enable/Disable
Reminders
• Run QA Check
• Submit for
Approval
18

19. R12 Usability Enhancements
When updating an item instance, the
user can review Impacted Contracts
View Impacted
Contracts for…
• Quantity Split
• Quantity
Increase
• Quantity
Decrease
• Termination &
Reinstatement
• Transfer
• Installation
date change
19

20. Tips from Oracle Development
• R12
• Auto-renewal – can take a long time to run if all your
contracts expire on the same day (e.g. at the end of the
year)
• Suggested workaround: Set conditions for when the contract
will get picked up for auto-renewal (create rules which break
up a large group of contracts into smaller groups)
• Use judgment in the number of lines and sub-lines
that you group into a single contract
• Creating a single service contract per customer with 1,000s
of lines some of which 10,000s of sub-lines can create
performance issues
20

21. Performance Improvements
• 11i10
• Eliminated Rules architecture - to improve performance for
contracts with large number of lines and sub-lines
• For contract copy, renewal and termination for contracts with
large number of lines and sub-lines
• R12
• Standard Coverage – store reference to coverage template
instead of replicating coverage information on every service
line
21

22. Post 12.1 Update
• Procurement, Sales & Repository Contracts
– Import clauses created/edited in Word
– MS Word 2007 support
– Additional section defaulting capabilities for Contract Expert *
– System Variables for Complex Acquisitions *
– Amendment Specific Sections *
• Service Contracts
– Configurable support for PA-DSS
* Currently available only with CLM for Public Sector
Proprietary and Confidential. Copyright © Oracle Corporation, 2009 22

23. Post 12.1.3 Contracts Development
Proposed Roadmap
Service Contracts
• Performance Improvements
• Pricing, Repricing, Manual Renewal
• Date Assembler & Auto Renewals Processing
• Usability Enhancements
• Profile to view service description/service name in authoring,
entitlement and install base flows
• Service Contracts Workbench: Additional search/result attributes
• Integration enhancements
• Service Contracts Import Enhancements – usage, tangible
subscriptions, partially billed service contracts, update contract
• Additional integration enhancements
• Revenue Recognition Enhancements
• Improved Credit Amortization for Contracts authored in Service contracts
form that leverage Summary Billing
Proprietary and Confidential. Copyright © Oracle Corporation, 2009 23

24. Credit Amortization for Summarized Billing
Worked Example
Service line worth $3600 covering 3 products (sublines) for a year billed in advance for the entire
year tied to an accounting rule that recognizes revenue equally over 12 months. The products
contribute equally ($1200 per product/subline) to the service line amount. Service line is billed in
summary.
Subline 1 partially terminated midway through the subline effectivity with credit amount as $600.
Subline 2 fully terminated (terminated on the start date of the subline) with credit amount as $1200.
Current Behavior
Revenue Distribution
Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun-
Instrument 10 10 10 10 10 10 11 11 11 11 11 11
Original Invoice ($3600) 300 300 300 300 300 300 300 300 300 300 300 300
Credit Memo ($600) for
subline 1 (300) (300)
Credit Memo ($1200) for
subline 2 (300) (300) (300) (300)
New Behavior
Revenue Distribution
Aug- Sep- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun-
Instrument Jul-10 10 10 Oct-10 10 10 11 11 11 11 11 11
Original Invoice ($3600) 300 300 300 300 300 300 300 300 300 300 300 300
Credit Memo ($600) for
subline 1 (100) (100) (100) (100) (100) (100)
Credit Memo ($1200) for
subline 2 (100) (100) (100) (100) (100) (100) (100) (100) (100) (100) (100) (100)
Proprietary and Confidential. Copyright © Oracle Corporation, 2009 24

25. Post 12.1.3 Contracts Development
Proposed Strategy for Roadmap
Procurement, Sales Contracts & Repository Contracts
• Support 2-way synchronization for contracts with clauses imported from
word
• Emphasize enterprise contract management
• Single contract repository – ability to manage and search on all EBS
and external source contracts
• Visibility to deliverables and expiring contracts regardless of
source of the contract
• Ability to import contracts from other systems - API to create standalone
contracts
Proprietary and Confidential. Copyright © Oracle Corporation, 2009 25

26. Introducing Oracle Contract Lifecycle Management for
Public Sector (CLM)
Oracle Contract Lifecycle Management for Public Sector is the integrated
acquisition management solution that transforms government procurement
• Streamline the entire acquisition process
• Enable intelligence-driven decision making
• Ensure accountability and transparency
IAE
FedBizOpps ORCA FPDS-NG CCR & EPLS
Purchase Pre- Offer Close-
Solicitation Award Post-Award
Request Solicitation Evaluation out
CLM Sessions at OpenWorld:
S317187 : Implementing Contract Lifecycle Management for Federal Procurement
S318025 : Contract Lifecycle Management for Public Sector
Demonstration available in the E-Business Suite Demo Grounds: Kiosk S-86 & S-87: Moscone South
26

27. <Insert Picture Here>
Fusion Enterprise Contracts – SIG Update
Vijay Rajkumar
Senior Director, Fusion Contracts Strategy

28. Fusion Enterprise Contracts
Fusion Contracts is an enterprise-wide solution that automates the
lifecycle of all types of contractual agreements
Contract lifecycle management
Consolidated repository and search
Standards-based T&Cs authoring
ECM Base Redlining with MS Word
Document management
Deviation and clause usage reporting
Procurement Projects Sales* Service*
Master agreements Project execution tracking Pricing agreements Coverage & subscriptions
Integration to Purchasing Billing and revenue mgmt Enforce pricing on orders Billing and revenue mgmt
Track spend Subcontractor mgmt Track fulfillment Entitlements & renewals
*Post V1 deliverable

29. Current E-Business Contracts Footprint
Contract Sales Agreements and
Sales Orders with Sales /
Repository T&Cs
Quoting
Visibility across all Sales Sell Product & Service
Enterprise
Contracts
Contracts
Order
CRM Service
Management
Manual Manual
Service Component
Sell Project & Product
Purchasing / Project Service
Buy Contracts Sub-contractor Contracts Contracts Entitlements
flow / Buy-side
Billing
Billing
Install Base
Invoices/
Project Project Revenue
Costing Billing Invoices
Revenue
Revenue
AP GL AR

30. Fusion Enterprise Contracts Footprint
Contract Admin /
Sales Rep
Create Invoice,
Contract Revenue
CRM Enterprise Financials
Contracts
Mfg, Shipping, Funding, Entitlements
Procurement Execution
Supply Chain, Service
Projects Execution
Logistics

31. Enterprise Contracts Concepts
• Contract Types
– User-defined (e.g. Fixed price consulting agreement, service contract, cost-
plus research agreement, equipment lease agreement)
– Specifies intent (sell vs. buy)
– Line types that will be sold or purchased
– Line type drives the overall UI
• Contract Line Types
– Specifies the type of item you are buying or selling
• Project-based item, ext. warranty, goods, price-hold, subscription, usage,
lease, etc.
– Line type determines the information captured for the line and the
downstream execution
• System Variables
– Structured information (business terms) to be used in printing, defining policy
rules, approval rules etc.

32. Implementing Enterprise Contracts
Single Contract Standards-based Execution
Repository Authoring Compliance
Features Features Features
Multiple contract types Library of standard clauses, policy Billing & revenue mgmt
Store all contracts in a single, secure rules and templates Pricing and commitment enforcement
searchable repository Wizard based authoring tool (Expert) Service entitlement verification
Search based on attributes and text Deviations reporting Advanced renewal management
Automate approvals Redlining with MS Word Contract Analytics (profitability,
Manage renewals Contract printing renewal rates etc.)
Visibility in customer 360 Change management
Benefits Benefits Benefits
Contracts visibility to key stakeholders Improve regulatory and procedural Avoid penalties & non-compliance
Better understanding of financial and compliance Negotiate better contracts
business obligations Reduce time-to-contract and costs Identify revenue acceleration and cost
Track risky relationships Reduce contract risk saving opportunities
ROI
Phased Implementation

33. ECM Base Features

34. Standardize Contract Processes
Manage Contract Types

35. Standardize Contract Processes
Manage Standard Templates
Clauses and Sections
Variables

36. Author and Collaborate
Wizard-based Authoring of Standard Contracts

37. Author and Collaborate
Collaborate in MSWord and Synchronize Changes

38. Standards Based Authoring
Contract Printing
Flexible PDF Output
• Tailor to your company standard
format
• Automatic substitution of negotiated
terms in printed document without
re-keying text
• Signature block
• Manage all contract documents,
exhibits, amendments, etc. in central
repository

39. Drive Contract Compliance
Easily Find Contracts to Verify Compliance
Search ‘text’ to match in
contract documents
Matching contracts
Matching files

40. Procurement
Contracts

41. Procurement Contracts Co-Existence
Negotiate Contracts Centrally
Heterogeneous Purchasing
Environment
EBS
Standalone Contracts Purchasing
Fusion
Enterprise Contracts
Purchasing
Author and Negotiate Push Pricing and
Contracts Commitments
SAP
Purchasing
Users - Business Dev / Legal / Global Procurement Users – Buyer / Financial

42. Procurement Contracts Co-Existence
Create Purchase Orders or Agreements in Purchasing

43. Project Contracts

44. Project Contracts – Define Billing

45. Project Contracts – Financial Summary

46. Contracts Conference
Sessions & Demo Stations
46

47. Conference Sessions
Monday September 20, 2010
TIME TITLE L O C AT I O N
Oracle Sourcing and Oracle Procurement Moscone West
2:00 pm – 3:00 pm
Contracts: Overview and Roadmap L2 Rm 2022
Moscone South
Oracle Fusion Enterprise Contracts – CRM
3:00 pm – 3:45 pm Exhibit Hall
Lounge
#105
Tuesday September 21, 2010
TIME TITLE L O C AT I O N
Oracle Service Contracts: Hear how Oracle Moscone West
2:00 pm – 3:00 pm efficiently manages its own ever growing L3 Rm
number of customer contracts 3002/3004
Implementing Contract Lifecycle Management Moscone West
5:00 pm – 6:00 pm
for Federal Procurement L2 Rm 2022
Oracle Fusion PPM: Next Generation Project Moscone West
5:00 pm – 6:00 pm
Financial Management L2 2005
47

48. Conference Sessions
Wednesday September 22, 2010
TIME TITLE L O C AT I O N
10:00 am – 11:00 Contract Lifecycle Management for Public Moscone West
am Sector L2 Rm 2009
11:30 am – 12:30 Top Questions on Oracle Fusion Procurement, Moscone West
am Shared Services, Contracts, Spending L2 Rm 2001
Moscone South
Oracle Fusion Enterprise Contracts – CRM
3:00 pm – 3:45 pm Exhibit Hall
Lounge
#105
48

49. Oracle Demo Grounds
PRODUCT D E M O S TAT I O N N A M E L O C AT I O N
Procurement
Contracts
Contract Oracle Sourcing, Contract, and Supplier Moscone South
Management Management (E‐Business Suite) S-087
CLM for Public
Sector
Moscone South
Sales Contracts Oracle Order Management (E‐Business Suite)
S-025
Moscone South
Service Contracts Oracle Service Solutions (E‐Business Suite)
S-080
Fusion Enterprise Oracle Fusion Customer Relationship Moscone South
Contracts Management S-044
Fusion
Moscone South
Procurement Oracle Fusion Procurement
S-088 & 105
Contracts
Fusion Project Moscone South
Oracle Fusion Project Portfolio Management
Contracts S-141 & 145
49

50. 50

51. Oracle OpenWorld
Latin America 2010
December 7–9, 2010
51

52. Oracle OpenWorld
Beijing 2010
December 13–16, 2010
52

53. 53

54. Appendix
54