Procurement Applications 11i10 Public Sector Update

2. Procurement Applications11i10 Public Sector Update Presentation Background: Intent of this presentation is to use at early stages with prospect or customer as it is meant to convey thought leadership and procurement vision. This is not a product drill down, as such does not describe specific product functionality. We have separate drill-downs that go more into feature/function. Advance Procurement is a marketing term to initiate opportunity discussion. It will help you explain why the Oracle procurement suite is more advanced than point solutions like Ariba, having full process support, and much more complete than ERP vendors, who don’t tell the whole story about solving procurement for all commodities. Presentation Background: Intent of this presentation is to use at early stages with prospect or customer as it is meant to convey thought leadership and procurement vision. This is not a product drill down, as such does not describe specific product functionality. We have separate drill-downs that go more into feature/function. Advance Procurement is a marketing term to initiate opportunity discussion. It will help you explain why the Oracle procurement suite is more advanced than point solutions like Ariba, having full process support, and much more complete than ERP vendors, who don’t tell the whole story about solving procurement for all commodities.

4. Agenda Procurement Contracts Services Procurement Sourcing Purchasing OSN

5. Oracle Procurement Contracts Complete End-to-End Solution This is essentially your existing Sourcing and Purchasing processes. This is essentially your existing Sourcing and Purchasing processes.

6. Oracle Procurement ContractsEnables You To…

7. Ability to do goods and service procurement on a single platform. Sourcing platform, handled by oracle sourcing, which include supplier selection, then the handling the negotiation with the supplier and ultimately generate the master contract agreement. Automation of requisition to purchase order, receiving and invoice payment. Infrastructure in place today, leverage Where its relevant, added components that are necessary for service procurement. Receiving, tracking and managing time. Oracle iProcurement enables key business functions in the services procurement flow, including service request creation, access to preferred suppliers and pre-negotiated rates, requisition tracking and management, etc. Oracle Services Procurement also leverages many of existing features supported in iProcurement such as encumbrance control, default charge account generation, p-card support, information templates, change order, etc. Ability to do goods and service procurement on a single platform. Sourcing platform, handled by oracle sourcing, which include supplier selection, then the handling the negotiation with the supplier and ultimately generate the master contract agreement. Automation of requisition to purchase order, receiving and invoice payment. Infrastructure in place today, leverage Where its relevant, added components that are necessary for service procurement. Receiving, tracking and managing time. Oracle iProcurement enables key business functions in the services procurement flow, including service request creation, access to preferred suppliers and pre-negotiated rates, requisition tracking and management, etc. Oracle Services Procurement also leverages many of existing features supported in iProcurement such as encumbrance control, default charge account generation, p-card support, information templates, change order, etc.

8. Oracle Sourcing Select Features Subjective Scoring model Amendments with Acknowledgement PDF Surrogate Bidding ‘Booster Pack’ for 11i10 Targeted for February 2005 Major Features for Public Sector!

9. Subjective Scoring with Enhanced Attributes Specify award criteria that applies to the entire negotiation (“scoring template”) Award criteria based on responses or internal criteria Internal type is hidden from suppliers Optional scoring models Max score Weight attributes by importance Display weights and scores to suppliers (public sector) Group and sequence attributes Buyers score after bids are received Compare side-by-side and view graphically

10. Amendments and Acknowledgement

12. Printing and Communication Powerful and flexible PDF PO formatting solution Each Operating Unit can define their own PO layouts Define logos, headers, footers, watermark etc. Generated document transmitted using supplier’s preferred communication mode Send POs via Mail, Fax or Email. Preview PDF PO output prior to approval or communication Document security PDF content inherently protected from updates View previous PO revisions in PDF format Our next feature is our new and improved PO printing and communication capabilities Using XSL Style Sheets users can change the PO layout to fit their business needs. They can hide and show PO details, change field positions, change font type/size, add logo, header/footer, etc. In future the XSL template will be replaced by RTF templates, which are more user friendly for layout changes. Through the approval process, the system uses the supplier’s preferred method for communication to transmit the purchase order to the supplier. Also, Oracle Purchasing has added a new option in PO Summary that allows users to re-send approved POs in any communication method: print, fax, email, XML, or EDI. From PO Enter or PO Summary forms users have an option to preview the PDF document prior to approval or communication. From the Inquiry menu, users can select View Document and the browser opens with a pdf version of the document. Users can not change the pdf version as it is opened in view only mode. From the browser, users can print the previewed document. If the PO is not approved the word “DRAFT” will be defaulted in the header of the document. Through the PO Change History UI users can review changes from one revision to another. Users can also select any previously approved revision of the PO to view in pdf mode. Once again, the pdf version of the document is opened in view only mode.Our next feature is our new and improved PO printing and communication capabilities Using XSL Style Sheets users can change the PO layout to fit their business needs. They can hide and show PO details, change field positions, change font type/size, add logo, header/footer, etc. In future the XSL template will be replaced by RTF templates, which are more user friendly for layout changes. Through the approval process, the system uses the supplier’s preferred method for communication to transmit the purchase order to the supplier. Also, Oracle Purchasing has added a new option in PO Summary that allows users to re-send approved POs in any communication method: print, fax, email, XML, or EDI. From PO Enter or PO Summary forms users have an option to preview the PDF document prior to approval or communication. From the Inquiry menu, users can select View Document and the browser opens with a pdf version of the document. Users can not change the pdf version as it is opened in view only mode. From the browser, users can print the previewed document. If the PO is not approved the word “DRAFT” will be defaulted in the header of the document. Through the PO Change History UI users can review changes from one revision to another. Users can also select any previously approved revision of the PO to view in pdf mode. Once again, the pdf version of the document is opened in view only mode.

13. PO Printing and Communication This is a sample of the purchase order in pdf format that comes seeded with the application. The data is captured in an XML file and the layout is defined in an XSL Style Sheet. Combining the XML with the XSL we obtain the PDF formatted document. This is a sample of the purchase order in pdf format that comes seeded with the application. The data is captured in an XML file and the layout is defined in an XSL Style Sheet. Combining the XML with the XSL we obtain the PDF formatted document.

14. PDOI Enhancements Add new lines and associated shipments to existing Standard Purchase Orders Automatically approve the Purchase Order or initiate the approval process Initiate funds checking on new lines in an encumbrance enabled operating unit The Purchasing Documents Open Interface already supports importing of new Blanket Agreements, Standard Purchase Orders and adding new lines to Blanket Agreements. With 11.5.10, we are introducing the ability to add new lines and associated shipments to an existing Standard Purchase Order. The existing Standard PO can be identified using the supplier document number, if the new line comes from an external system OR by using the document number, supplier name/id and document type if the import is from another Operating Unit (for example: if a customer uses a separate operating unit to procure OPM items). If a unique Purchase Order cannot be identified, exception is logged in the interface error report. Similar to importing blanket agreements, you can specify that the new line is brought in as ‘approved’ or you can initiate approval. In either event the Purchase Order revision is incremented, and once the PO is approved, it is communicated to the supplier. If the operating unit is encumbrance enabled, the new line amount is sent through the funds reservation process. Reservation failures are recorded as exceptions in the interface error report. If you are using Oracle Grants Management System, then PDOI has also been enhanced to allow the import of Grants information on Standard POs. Information includes Award Number which is used by the Funds Reservation process to determine if funds are available against a particular Grant. The ability to Import Grants information was made available as a patch on top of Oracle Purchasing release 11.5.8 and 11.5.9.The Purchasing Documents Open Interface already supports importing of new Blanket Agreements, Standard Purchase Orders and adding new lines to Blanket Agreements. With 11.5.10, we are introducing the ability to add new lines and associated shipments to an existing Standard Purchase Order. The existing Standard PO can be identified using the supplier document number, if the new line comes from an external system OR by using the document number, supplier name/id and document type if the import is from another Operating Unit (for example: if a customer uses a separate operating unit to procure OPM items). If a unique Purchase Order cannot be identified, exception is logged in the interface error report. Similar to importing blanket agreements, you can specify that the new line is brought in as ‘approved’ or you can initiate approval. In either event the Purchase Order revision is incremented, and once the PO is approved, it is communicated to the supplier. If the operating unit is encumbrance enabled, the new line amount is sent through the funds reservation process. Reservation failures are recorded as exceptions in the interface error report. If you are using Oracle Grants Management System, then PDOI has also been enhanced to allow the import of Grants information on Standard POs. Information includes Award Number which is used by the Funds Reservation process to determine if funds are available against a particular Grant. The ability to Import Grants information was made available as a patch on top of Oracle Purchasing release 11.5.8 and 11.5.9.

15. Encumber Blanket Agreements Create commitment encumbrances for Blanket Agreements User can control the amount to encumber, budget account and the GL Accounting Date Federal users may specify transaction code to be used Proper handling of accounting during execution Our next new feature falls under the heading of Encumbrance Enhancements. In this release Oracle Purchasing has enhanced Blanket agreements to allow them to be encumbered. Users can create Encumbrances for Blanket Purchase Agreements when their business processes require it. User can control the amount to encumber, budget account used, and the GL accounting date Federal users can also specify the transaction code to be used Enhancements have been made to the Purchasing Documents Open Interface to allow importing of encumbrance information when importing new documents. Users can also modify encumbrance fields when document is unreserved. Oracle Purchasing will automatically reverse encumbrances for Blanket Purchase Agreements when encumbrances are created for Releases against the BPA or when BPA document actions are taken such as cancel, finally close, reject, and unreserved. The ability to report encumbrance status has been added to several parts of the application. For example: Document Summary Form displays encumbrance amount and status And Encumbrance Detail Report displays encumbrance amount Finally, in order to prevent creation of duplicate encumbrances on related requisitions, when requisitions are sourced to an encumbered Blanket Purchase Agreement the requisition will not be encumbered.Our next new feature falls under the heading of Encumbrance Enhancements. In this release Oracle Purchasing has enhanced Blanket agreements to allow them to be encumbered. Users can create Encumbrances for Blanket Purchase Agreements when their business processes require it. User can control the amount to encumber, budget account used, and the GL accounting date Federal users can also specify the transaction code to be used Enhancements have been made to the Purchasing Documents Open Interface to allow importing of encumbrance information when importing new documents. Users can also modify encumbrance fields when document is unreserved. Oracle Purchasing will automatically reverse encumbrances for Blanket Purchase Agreements when encumbrances are created for Releases against the BPA or when BPA document actions are taken such as cancel, finally close, reject, and unreserved. The ability to report encumbrance status has been added to several parts of the application. For example: Document Summary Form displays encumbrance amount and status And Encumbrance Detail Report displays encumbrance amount Finally, in order to prevent creation of duplicate encumbrances on related requisitions, when requisitions are sourced to an encumbered Blanket Purchase Agreement the requisition will not be encumbered.

16. Selectively Unreserve Funds  Allows encumbrance Unreserve action for a line, shipment, or distribution Allows user to control the date to be used for Unreserve action for each distribution and account Applicable to both Requisitions and Purchase Orders Our next new feature also falls under the heading of Encumbrance Enhancements and is Unreserving Funds at any Level of the Purchasing Document. In the past a requisition or purchase order was either reserved or not for the entire amount of the document. If for any reason it was necessary to unreserve the document (I.e., reduce the PO quantity), then the user would have to unreserve the entire document taking the risk that the funds would not be available when they attempted to re-reserve the document. In this release users can now take the unreserve action at any level of the purchasing document. For requisitions they can be reserved at the header, line and distribution level, and for purchase orders it can be at the header, line, shipment or distribution level. In addition, the user can specify whether the unreserve action should use the accounting date on the distribution instead of the unreserve date (distribution date will only be used if it is in an open period). Previously the unreserve action always used the unreserve date for all distributions on the document.Our next new feature also falls under the heading of Encumbrance Enhancements and is Unreserving Funds at any Level of the Purchasing Document. In the past a requisition or purchase order was either reserved or not for the entire amount of the document. If for any reason it was necessary to unreserve the document (I.e., reduce the PO quantity), then the user would have to unreserve the entire document taking the risk that the funds would not be available when they attempted to re-reserve the document. In this release users can now take the unreserve action at any level of the purchasing document. For requisitions they can be reserved at the header, line and distribution level, and for purchase orders it can be at the header, line, shipment or distribution level. In addition, the user can specify whether the unreserve action should use the accounting date on the distribution instead of the unreserve date (distribution date will only be used if it is in an open period). Previously the unreserve action always used the unreserve date for all distributions on the document.

17. Requisition Approval Management using Oracle Approvals Management  Integration with Oracle Approvals Management (AME) Option to use existing approval setup or migrate to Oracle Approvals Management standards Integration is supported for requisitions created in iProcurement or Purchasing Must use the employee/supervisor hierarchy Our next feature is Requisition Approval Management using Oracle Approval Management Oracle Approval Management has developed a powerful approval engine. Using this feature allows document approval via a single approval engine, thus providing a consistent and uniform approval mechanism for all Oracle products Approval rules can be defined once and be leveraged across multiple products, requiring less maintenance work Approval rules can be easily extended without having to customize the application or the workflow Finally, Individual products can easily uptake any new features developed for the Oracle Approval Management product Please refer to the iProcurement Functional TOI for more details regarding this integrationOur next feature is Requisition Approval Management using Oracle Approval Management Oracle Approval Management has developed a powerful approval engine. Using this feature allows document approval via a single approval engine, thus providing a consistent and uniform approval mechanism for all Oracle products Approval rules can be defined once and be leveraged across multiple products, requiring less maintenance work Approval rules can be easily extended without having to customize the application or the workflow Finally, Individual products can easily uptake any new features developed for the Oracle Approval Management product Please refer to the iProcurement Functional TOI for more details regarding this integration

18. Digital Signatures FDA CFR 21 Part 11 Compliance Governs technical aspects of computer and software systems used by Manufacturers Primary Requirements eRecords eSignatures Compliance within Oracle Purchasing Changes to Approved Supplier List recorded in an evidence store via an eRecord snapshot Results from inspection of received goods is also stored using eRecord technology Electronic signature of the inspector captured along with the inspection results Oracle Purchasing now aids compliance with the FDA Code of Federal Regulations 21 Part 11 requirements governing the technical aspects of computer and software systems that are used by manufacturers. Specifically, Oracle Purchasing now satisfies the two primary requirements of CFR Part 11: electronic records (“e-Records”) and electronic signatures (“e-Signatures”). The new functionality is manifest in two areas: the Approved Supplier List (ASL) and Receiving Inspections with Oracle Quality. Changes to an ASL attribute are now recorded through an e-Record to an evidence store. Likewise, an e-Record snapshot is also stored for Receiving Inspections using Oracle Quality. Additionally, Receiving Inspections using Oracle Quality capture an e-Signature through a self-service browser window. Oracle Purchasing now aids compliance with the FDA Code of Federal Regulations 21 Part 11 requirements governing the technical aspects of computer and software systems that are used by manufacturers. Specifically, Oracle Purchasing now satisfies the two primary requirements of CFR Part 11: electronic records (“e-Records”) and electronic signatures (“e-Signatures”). The new functionality is manifest in two areas: the Approved Supplier List (ASL) and Receiving Inspections with Oracle Quality. Changes to an ASL attribute are now recorded through an e-Record to an evidence store. Likewise, an e-Record snapshot is also stored for Receiving Inspections using Oracle Quality. Additionally, Receiving Inspections using Oracle Quality capture an e-Signature through a self-service browser window.

20. Procurement Product Development Sessions - all in Room 3008 Oracle Advanced Procurement: Vision for the Future: Tue 12/7/04 10:00 AM Procurement Contracts: Tue 12/7/04 2:00 PM Linking Suppliers and Procurement: Oracle iSupplier Portal 11i10 and Oracle Supplier Network - Wed 12/8/04 4:30 PM Customer Panel - Thu 12/9/04 11:00 AM Caffeinated Procurement: Reintroducing Purchasing with Oracle E-Business Suite 11i10: Thu 12/9/04 1:00 PM Driving Self-Service: Oracle iProcurement and Services Procurement: Thu 12/9/04 2:30 PM Taking the Guesswork out of Sourcing with Oracle Sourcing: Thu 12/9/04 4:00 PM

21. Thank You.