Merging Newly Acquired Companies into Oracle EBS

1. REMINDER
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Merging Newly Acquired Companies
into Oracle EBS
Prepared by:
Alan Green
Oracle EBS Practice Lead
and
David Dozier
Senior EBS Consultant
Emtec Inc.
Session ID#: OAUG - 10293
Alan.Green@Emtecinc.com
David.Dozier@Emtecinc.com

2. 73%
YEARS
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OUR COMPANY
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associates
19
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OUR SERVICES
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prior tier 1
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avg years
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Management
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enterprise infrastructure,
end user computing
Business and Technology Empowered

3. 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

4. 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

5. 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

6. 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.

7. 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

8. 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

9. 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

10. 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)

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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.

18. 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

19. 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

20. 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

21. 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

22. 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

23. 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

24. 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)

25. 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

26. 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

27. 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

28. 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

29. 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

30. 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

31. 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)

32. 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

33. Questions and/or Comments

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