TRUCKING ALONG WITH ALLOCATIONS AND RECURRING JOURNALS IN ORACLE ERP FINANCIALS CLOUD

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Britney Elliott
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3 About Grant Thornton We are the U.S. member firm of Grant Thornton International, a global organization of member firms providing audit, tax and advisory services to clients for more than 90 years. Over 10% revenue growth in the U.S. last year with a 13% increase in headcount $1.56bn revenues PEOPLE 35% of the companies on the 2015 Fortune 1000 list 39% of the companies on the 2015 Fortune 500 list 54% of the companies on the 2015 Fortune 100 list 25% of the companies on the Russell 2000 list PARTNERS OFFICES 2016 Grant Thornton LLP. All rights reserved. 3

0 billion $140 million # of Customers ~125,000 # of Terminals 260 Average Length of Haul Average Weight Average Transit 1,300 miles 1,200 lbs 3-4 days For next-day and time-sensitive services, we

4 North American Coverage YRC Freight serves manufacturing, wholesale, retail and government customers throughout North America. When customers need longer-haul LTL shipping solutions, YRC Freight is the expert YRC Freight FY 2016 Revenue FY 2016 Adj. EBITDA Metric $3.0 billion $140 million # of Customers ~125,000 # of Terminals 260 Average Length of Haul Average Weight Average Transit 1,300 miles 1,200 lbs 3-4 days For next-day and time-sensitive services, we have three distinct regional carriers: Holland, Reddaway and New Penn. All three brands are wellestablished in their respective regions YRC Regional FY 2016 Revenue FY 2016 Adj. EBITDA Metric $1.7 billion $157 million # of Customers ~150,000 # of Terminals 127 Average Length of Haul Average Weight Average Transit 400 miles 1,500 lbs > 90% in 2 days or less 2016 Grant Thornton LLP. All rights reserved. 4

5 Project Background YRC (legacy PeopleSoft customer) made a strategic decision to replace existing PeopleSoft ERP & HCM applications with Oracle Cloud ERP & HCM Minimize customizations, utilized delivered functionality Forced currency, hosted (disaster recovery) Single platform, data integration improvement Simplify technical landscape Supports business functions including General Ledger, Accounts Payable, Fixed Assets, Financial Reporting, Core HR, Payroll, and Talent Acquisition & Management 2016 Grant Thornton LLP. All rights reserved. 5

Customize Adapt Processes Big Bang Incremental Waterfall

6 Project Approach Guiding Principles Traditional Approach Cloud Approach Requirements Driven Solution Driven Extend & Customize Adapt Processes Big Bang Incremental Waterfall Methodology Iterative 2016 Grant Thornton LLP. All rights reserved. 6

Implementation Methodology Overview The project and Grant Thornton s Methodology is aligned to Oracle's Unified Method (OUM) and was built on the realization of

system Accelerating approach through the use of deliverable templates and built-in Cloud ERP and HCM tools Leveraging Agile development principles: allow users to

7 Implementation Methodology Overview The project and Grant Thornton s Methodology is aligned to Oracle's Unified Method (OUM) and was built on the realization of accelerating the benefits of implementing a new system and technology by Incorporating best practices Ensuring business transformation is addressed/supported by the system Accelerating approach through the use of deliverable templates and built-in Cloud ERP and HCM tools Leveraging Agile development principles: allow users to visualize and experience the application early in the implementation process Integrating change and quality management activities 2016 Grant Thornton LLP. All rights reserved. 7

8 Implementation Methodology Phase Detail Activity/Deliverable Plan Design Build and Configure Validate Transition Confirm strategy, scope and timeline project plan Project team, roles and responsibilities Interactive future state business process workshops Initiate conference room pilots (CRP) configure and test Determine specifications for integrations and data conversion Define reporting strategy, Security design Full application configuration; continue CRP sessions Build programs - Interfaces; data conversion extract Initiate testing and training planning activities Validate application design complete and accurate Validate data conversions and integrations End-user training Configure production instance Transition operation to production system 2016 Grant Thornton LLP. All rights reserved. 8

9 Implementation Timeline 2016 Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Phase 0 Process & Application Design Integration & Data Conversion Design Application Configuration Data Conversion Build Iterative Integration Build & Test Validation Transition Conference Room Pilot (CRP) Test Go-Live 2016 Grant Thornton LLP. All rights reserved. 9

11 Business process items address by Allocations at YRC Payroll tax and Vacation / Holiday accrual and allocation process Needed to be able to utilize a single offset cost center (e.g. default / 0000 cost center) Offset is a liability / Accrual account and therefore true cost center is not valid 2016 Grant Thornton LLP. All rights reserved. 11

15 Allocation Configuration Calculation Manager Concepts Concept Source Target Offset Validation Description The source refers to the cost or revenue pool which is used for pro-rating across the allocation range in an allocation component, or the basis for computation in a formula component. Source can be a referenced account balance or it can just be a user defined amount. The target is the receiver of the allocated or calculated amount. The offset is the receiver for the offsetting debit or credit to balance out the generated allocation or formula. The Allocation Manager process of checking the validity of the allocation or formula definition, such as checking for consistency against the outline of the balances cube it references. Run Time Prompt (RTP) Point of View (POV) Cross Dimensional Operator: -> A variable that user supplies the value for before an allocation rule is run. This is a user-defined element at the time of the rule definition and makes the rule highly dynamic and reusable. Typically RTP s are Accounting Period or Primary Balancing Segment Value. The dimensional members (accounting string members) that are static throughout the calculation e.g. the filter or Fix statement (for those familiar with Essbase scripts) Used to overwrite the Point of View (POV) and choose different dimensional members for formula equations. Use the POV to select the dimensional members that are consistent across source, target, and offset but use -> to select specific members for these in the calculation Grant Thornton LLP. All rights reserved. 15

17 Allocation Configuration Calculation Manager Concepts When you define an allocation rule, you specify a basis method. The basis method defines how the amounts in the source pool are to be divided among the target lines. Basis methods used in Allocations: Spread Evenly Based on another Value 2016 Grant Thornton LLP. All rights reserved. 17

19 Allocations Sample Source Net Rev Basis 500,000 Dept A Target $50,000 $100, , ,000 Dept B Dept C $20,000 $10, ,000 Dept D $20,000 -$100,000 Dept Z Offset 2016 Grant Thornton LLP. All rights reserved. 19

20 Allocation Configuration Calculation Manager Concepts Concept Source Target Offset Validation Description The source refers to the cost or revenue pool which is used for pro-rating across the allocation range in an allocation component, or the basis for computation in a formula component. Source can be a referenced account balance or it can just be a user defined amount. The target is the receiver of the allocated or calculated amount. The offset is the receiver for the offsetting debit or credit to balance out the generated allocation or formula. The Allocation Manager process of checking the validity of the allocation or formula definition, such as checking for consistency against the outline of the balances cube it references. Run Time Prompt (RTP) Point of View (POV) Cross Dimensional Operator: -> A variable that user supplies the value for before an allocation rule is run. This is a user-defined element at the time of the rule definition and makes the rule highly dynamic and reusable. Typically RTP s are Accounting Period or Primary Balancing Segment Value. The dimensional members (accounting string members) that are static throughout the calculation e.g. the filter or Fix statement (for those familiar with Essbase scripts) Used to overwrite the Point of View (POV) and choose different dimensional members for formula equations. Use the POV to select the dimensional members that are consistent across source, target, and offset but use -> to select specific members for these in the calculation Grant Thornton LLP. All rights reserved. 20

Allocation Configuration Concepts Calculation Manager provides an automated solution to flexibly distribute revenues and costs across the enterprise or to record formulaic recurring adjustments.

21 Allocation Configuration Concepts Calculation Manager provides an automated solution to flexibly distribute revenues and costs across the enterprise or to record formulaic recurring adjustments. Define rules to generate formula-based journals. Leverage references to pre-aggregated multidimensional balances to maximize efficiency in executing complex calculations Grant Thornton LLP. All rights reserved. 21

23 Allocation Configuration Calculation Manager Concepts Concept Source Target Offset Validation Description The source refers to the cost or revenue pool which is used for pro-rating across the allocation range in an allocation component, or the basis for computation in a formula component. Source can be a referenced account balance or it can just be a user defined amount. The target is the receiver of the allocated or calculated amount. The offset is the receiver for the offsetting debit or credit to balance out the generated allocation or formula. The Allocation Manager process of checking the validity of the allocation or formula definition, such as checking for consistency against the outline of the balances cube it references. Run Time Prompt (RTP) Point of View (POV) Cross Dimensional Operator: -> A variable that user supplies the value for before an allocation rule is run. This is a user-defined element at the time of the rule definition and makes the rule highly dynamic and reusable. Typically RTP s are Accounting Period or Primary Balancing Segment Value. The dimensional members (accounting string members) that are static throughout the calculation e.g. the filter or Fix statement (for those familiar with Essbase scripts) Used to overwrite the Point of View (POV) and choose different dimensional members for formula equations. Use the POV to select the dimensional members that are consistent across source, target, and offset but use -> to select specific members for these in the calculation Grant Thornton LLP. All rights reserved. 23

24 Allocation Configuration Calculation Manager Concepts Concept Source Target Offset Validation Description The source refers to the cost or revenue pool which is used for pro-rating across the allocation range in an allocation component, or the basis Required for computation for source only in a formula component. Source can be a referenced account balance or it can just be a user defined amount. Net Revenue -> "0000" ->Actual -> PTD ->Period Activity The target is the receiver of the allocated or calculated amount. The offset is the receiver for the offsetting debit or credit to balance out the generated allocation or formula. The Allocation Manager process of checking the validity of the allocation or formula definition, such as checking for consistency against the outline of the balances cube it references. Account-> Department ->Scenario -> Amount Type ->Balance Amount Run Time Prompt (RTP) Point of View (POV) Cross Dimensional Operator: -> A variable that user supplies the value for before an allocation rule is run. This is a user-defined element at the time of the rule definition and makes the rule highly dynamic and reusable. Typically RTP s are Accounting Period or Primary Balancing Segment Value. The dimensional members (accounting string members) that are static throughout the calculation e.g. the filter or Fix statement (for those familiar with Essbase scripts) Used to overwrite the Point of View (POV) and choose different dimensional members for formula equations. Use the POV to select the dimensional members that are consistent across source, target, and offset but use -> to select specific members for these in the calculation Grant Thornton LLP. All rights reserved. 24

25 Allocation Configuration Calculation Manager Concepts Concept Source Target Offset Validation Description The source refers to the cost or revenue pool which is used for pro-rating across the allocation range in an allocation component, or the basis for computation in a formula component. Source can be a referenced account balance or it can just be a user defined amount. The target is the receiver of the allocated or calculated amount. The offset is the receiver for the offsetting debit or credit to balance out the generated allocation or formula. The Allocation Manager process of checking the validity of the allocation or formula definition, such as checking for consistency against the outline of the balances cube it references. Run Time Prompt (RTP) Point of View (POV) Cross Dimensional Operator: -> A variable that user supplies the value for before an allocation rule is run. This is a user-defined element at the time of the rule definition and makes the rule highly dynamic and reusable. Typically RTP s are Accounting Period or Primary Balancing Segment Value. The dimensional members (accounting string members) that are static throughout the calculation e.g. the filter or Fix statement (for those familiar with Essbase scripts) Used to overwrite the Point of View (POV) and choose different dimensional members for formula equations. Use the POV to select the dimensional members that are consistent across source, target, and offset but use -> to select specific members for these in the calculation Grant Thornton LLP. All rights reserved. 25

26 Allocation Configuration Calculation Manager Allocations/Scenario Dimension For Allocations, there are two specific seeded scenarios that can be used for step down allocations. Use either of: Allocated - temporarily holds the allocated values during the rule generation process Total for Allocations - the sum of Actual and Allocated amounts 2016 Grant Thornton LLP. All rights reserved. 26

27 Allocation Configuration Because allocation engine was being used to calculate Payroll tax and Vacation / Holiday accrual at YRC, 2-step process was needed First step calculated overall accrual amount based on established percentage assumptions for payroll tax as well as vacation and holiday Second step allocated the total accrual amount to individual cost centers based on the ratio of wages for each individual cost center 2016 Grant Thornton LLP. All rights reserved. 27

Allocation Configuration - Rule POV 2016

41 Allocation Considerations Item Calculation Results do not appear in Actual balances until results are posted. Cannot post to the exact intersection more than once (full dimensional string including debit / credit) in a single rule or ruleset rule will simply take final amount and cause unbalanced journal Workaround Recommendation If you need to use results of prior step from rule use either Allocated or Total for Allocations Use additional dimensional members (e.g. project) to ensure uniqueness Write rule taking this into account e.g. use single formula component with multiple formula lines all with one offset When submitting Allocations, RTP must be selected from drop-down; you cannot simply enter the value as Oracle will not recognize it correctly and script will fail Balance Amount (e.g. Beginning Balance, Period Activity, or Ending Balance) is important for all member selection components on right side of formula component. If it is not selected (using cross dimensional operator) results will not be as expected Using sum result in formula from prior formula step can cause unbalanced journals due to rounding Offset and left side / result of formula must be a level 0 member / account in order for allocation to validate and be able to run 2016 Grant Thornton LLP. All rights reserved. 41

45 Allocation Considerations Required for source only Net Revenue -> "0000" ->Actual -> PTD ->Period Activity Account-> Department ->Scenario -> Amount Type ->Balance Amount 2016 Grant Thornton LLP. All rights reserved. 45

48 If you have any follow-up questions please see me after the session or don t hesitate to contact me directly with the contact information below: Mary Krupa T: E: Mary.Krupa@us.gt.com 2016 Grant Thornton LLP. All rights reserved. 48

XML Publisher Balance Sheet Vision Operations (USA) Feb-02

XML Publisher Balance Sheet Vision Operations (USA) Feb-02 Page:1 Apr-01 May-01 Jun-01 Jul-01 ASSETS Current Assets Cash and Short Term Investments 15,862,304 51,998,607 9,198,226 Accounts Receivable - Net of Allowance 2,560,786