The document discusses Oracle's capabilities for procurement of complex services. It defines complex services and outlines Oracle's end-to-end process for handling complex procurements from requesting services to tracking progress and processing payments according to negotiated terms. Key areas covered include creating RFQs, authoring contracts with provisions for advances, payment schedules, and retainage, and integrating supplier confirmations and invoicing with accounting and projects modules. The presentation provides a case study example and highlights benefits of Oracle's functionality for streamlining complex procurement processes.

1. Procurement of Services using Oracle EBS A Webinar

2. Disclaimer All other trademarks, service marks and logos used in this webinar are the trademarks, service marks or logos of their respective owners. The views expressed in this webinar are views of the speakers and do not necessarily reflect the views of iWare Logic Technologies Pvt. Ltd.

3. OBJECTIVES The purpose of this Webinar is to understand Complex Services using Oracle Advance Procurement Procurement of Complex Services. Handling Complex Services Contracts for Projects. Control and transparency of Complex Service using Oracle EBS.

4. AGENDA Complex Services for Different Industries. Oracle Advance Procurement and Complex Services. Business Flows: Handling Procurement of Complex Services. Integration of Complex Services with Oracle HRMS, Oracle Projects and Oracle Financials. Benefits to various Industries. Case Study.

5. What is Complex Service Procurement? The Complex Service Contract Can be identifies on the basis of following Characteristics :- High Value Long Lead Time Delivery Schedule Progress Payment Schedule based on Work Progress Pre defined Retainage amount for work performance Contract Financing The Complex Service Procurement is used for following Commodities Professional Services Engineering Services Construction Services

6. Oracle applications need to complete process iProcurement iProcurement remains the initiating point for demand with complex work requests. Sourcing Once a request has been approved and is ready to be fulfilled, the next step can be to create a sourcing document such as a Request for Quotation (RFQ). Purchasing Once the award is made after the sourcing event is over, if you chose an outcome of Purchase Order, the information from the RFQ defaults onto it. iSupplier Portal When a purchase order has been approved, iSupplier Portal becomes a major source of communication and collaboration for the supplier. Oracle Contracts Author Contracts, Manage Deliverables, Print & Sign Contract Terms, Administer Changes

7. Why did Oracle build the functionality in to R12 EBS? Oracle saw market drivers amongst various markets in which it serves. Requirements where showing up in the Private and Public-sector. Customers such as the Department of Defense and the Office of Naval Research had requirements for such systems. Also in many cases there are regulatory agencies that require complex contracts to be written by suppliers. The world of engineering and construction require such systems. Use of R12 Oracle Services Procurement Executing complex procurement services such as construction and maintenance have always been a challenge for procurement Organizations.R12 Oracle Services Procurement will take the management of these tasks to a new level of transactional excellence through deeper integration of Purchasing, iSupplier Portal, Sourcing, and Contracts.

8. Business Process Terminology used in Complex Service Procurement Progress Payment Schedule:- The Progress Payment Schedule is typically attached with the Work Completion Schedule. This term is normally used in context with the Construction Services where in the payment is to be made only after the Completion of the work which is scheduled. Progress Payment:- This type of payment are released even though the work is completed partially. Each payment refers the progress payment schedule. Pay Items:- The Progress Payment Schedule is typically attached with the Work Completion Schedule. Progress Payment Rate:- The Progress payment rates are used to compute Reimbursement amount based on the cost incurred by Contractor. Contract Financing :- Contract Financing is often used on Public Sector Contracts. Contract Financing is paid based on work performed or cost to date

9. Business Process Terminology used in Complex Service Procurement (Continued) Advances : - A payment which is released usually before work/services provided to contractor. Recoupment : - Recovery of the advance from the payments to be made against services or works performed against the contract. Recoupment Rate :- The rate of recovery of the amount which to be recovered against the invoices submitted by contractor for the services/ Work delivered against contract Retainage Rate : - The rate of deduction applied on the invoice amount that is to be withheld against invoice as Retainage.

10. Business Process Flow of Complex Service Procurement Request for the Services can Originate from multiple Sources Facility Manager , Project Manager , Field Engineer Request For Service

11. Business Process Flow of Complex Service Procurement Invite the supplier for Submitting the Quotation Negotiate with Supplier on:- Complex Payment Terms Progress Payment Schedule Clauses and Deliverables Request For Service Source

12. Business Process Flow of Complex Service Procurement Request For Service Author Contract Source Award Contract to Best Supplier Contractor and Authorized person from the buying company signs the contract

13. Business Process Flow of Complex Service Procurement Request For Service Author Contract Advance Payment Source If in the contract any Advance payment is defined then Supplier demands Advance against Contract On the basis of the contract terms the advance is paid to supplier

14. Business Process Flow of Complex Service Procurement Track Progress Request For Service Author Contract Advance Payment Source Supplier Submits the Progress report of the work Facility Manager and / Or Project Manager certifies the progress

15. Business Process Flow of Complex Service Procurement Track Progress Request For Service Author Contract Advance Payment Source Process Payment Contractor submits the invoice for Contract Financing and Progress Payment Schedule. Retainage is applied Finance is Recouped using the recoupment Rate Payment is Released

16. Integration with other Modules Negotiate Track Progress Invoice / Payments Budget / Deliverables Request for Services Retainage Release Cost Collection Oracle Projects Procurement for Complex Services Control Advanced Procurement Oracle Payables

17. Benifits :- Streamline and Automate Procurement of the Complex Services Spend Category. Ensure Compliance with 360 º Visibility to all aspects of the Contract Lifecycle. Reduce Acquisition Costs through Seamless Collaboration with Key Stakeholders. Minimize Acquisition Risks by using Negotiated Payment Terms. Ensure Fiscal Compliance.

18. Construction Contract Example Contract for Parking Lot Renovation Services - $1,000,000 This example will illustrate the following features: Project Manager creates Service Request Negotiation of Complex Payment Terms Advances Recoupment Rate Retainage Rate & Maximum Retainage Amount Payment Schedule for Parking Lot Renovation Work Confirmation & Self Billing Recoupment of Advance Payment Retainage and Retainage Release

19. Procurement for Complex Services Process – Negotiate & Source Track Progress Request For Service Service Contract Advance Payment Source Process Payment

20. Procurement for Complex Services Request for Services

21. Procurement for Complex Services Request for Services

22. Procurement for Complex Services Process – Negotiate & Source Track Progress Request For Service Service Contract Advance Payment Source Process Payment

23. Procurement for Complex Services Process – Create RFQ

24. Procurement for Complex Services Process – Create RFQ

25. Procurement for Complex Services Process – Create RFQ

26. Procurement for Complex Services Process – Create Quote

27. Procurement for Complex Services Process – Quotation Analysis

28. Procurement for Complex Services Process – Create PO from RFQ

29. Procurement for Complex Services Additional Features

30. Procurement for Complex Services Additional Features

31. Procurement for Complex Services Process – Author Contract Track Progress Service Contract Advance Payment Source Process Payment

32. Procurement for Complex Services Process – Author Contract Header

33. Procurement for Complex Services Process – Author Contract Line

34. Procurement for Complex Services Process – Author Contract Line

35. Procurement for Complex Services Process – Author Progress Payment Schedule

36. Procurement for Complex Services Process – Specify Distributions

37. Procurement for Complex Services Process – Advance Payment Track Progress Service Contract Advance Payment Source Process Payment

38. Procurement for Complex Services Process – Advance Payment

39. Procurement for Complex Services Process – Track Progress Track Progress Service Contract Advance Payment Source Process Payment

40. Procurement for Complex Services Process – PO View

41. Procurement for Complex Services Process – Create Work Confirmation

42. Procurement for Complex Services Process – Work Confirmation Status

43. Procurement for Complex Services Track Progress - Projects

44. Procurement for Complex Services Track Progress - Projects

45. Procurement for Complex Services Process – Payment Track Progress Service Contract Advance Payment Source Process Payment

46. Procurement for Complex Services Progress Payment - Invoice

47. Procurement for Complex Services Progress Payment – Invoices As progress is made on the work, the supplier continues to submit work confirmations, work is approved, invoices are generated, and retainage is withheld Billed Retained Advance Approved Advance Resurface Lot Road Work Landscape Final Painting 50,000 200,000 200,000 <20,000> <50,000> 500,000 500,000 <50,000> 250,000 250,000 <25,000> 50,000 50,000 < 5,000> 1,000,000 1,000,000 <100,000> 0

48. Procurement for Complex Services Progress Payment – Retainage Release

49. Summary Thus Oracle has introduced a truly integrated set of functionality that allows organizations to negotiation needs up front and by doing so will free up the sourcing team to control more of the company’s spend. The concept of a complex work document significantly automates down stream transactions and allows the associated departments to focus on strategic transaction needs rather than bulk. Collaboration with suppliers is increased by giving both parties a 360 degree view and communication path .

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