European Implementations

1. European Implementations Oracle Application User’s Group

2. Agenda • Project Management for International Implementations • Global Implementation Challenges • Global Design Considerations • Country Localizations • AX Module • International Trade Management • Bonded Warehouse • Intrastat reporting • Country of Origin • VAT & Triangulation • Multi-Currency Price List Oracle Application User’s Group

3. Project Management • Considerations: • Global Management Team & resources • Global sponsorship includes sponsor resources • Local Management Team & resources • Local team includes super users and management • Communications Plan • Critical to ensure local communication with corporate or global sponsor (status reports/meetings, executive steering committee meetings) • Travel frequency / costs • Conference calling for key meetings / status updates Oracle Application User’s Group

4. Challenges • Challenges: • Time zone differences • Talk in the morning, e-mail at night. Plan days accordingly – reverse for European team members. • Language & cultural differences • Key to visit local office at least once, preferably more to build rapport with local management and team. • Dedicated Resources • Both locally and globally • Design • Global design will be implemented locally – must insure buy-in! Oracle Application User’s Group

5. Global Design • Considerations: • Chart of Accounts: • Local regulatory charts in Spain, Portugal, France, and Italy • Local statutory reporting and customary business processing requirements • Similarity of business • Asset Categories • Common Customer numbering / naming conventions • Common Vendor numbering / naming conventions • Standardize business processes • Infrastructure: • Number of users at each site • Languages supported Oracle Application User’s Group

6. Country Localizations • Considerations: • Review all Oracle supplied localizations • Compare to statutory requirements from your local auditor • Verify all standard regulatory reports are provided or supported by Oracle localizations • While Oracle strives to keep current with each country’s localizations, not all are supported – find out in advance which are not supported, and plan accordingly! • Search Metalink for conflicts between one country’s localizations and another’s. Oracle Application User’s Group

7. AX Module • Considerations: • Specific localization that applies to Southern European countries only: France, Spain, Portugal and Italy. • Copies all AR, AP, & GL transactions to produce regulatory vendor and customer transaction reports. • Relies on document sequencing • Does not fully support multi-org although documentation says it does. Need to customize reports to support different companies if you do not set up separate sets of books for each. • Has it’s own configuration requirements, but no transaction processing user interface Oracle Application User’s Group

8. International Trade Management • One of the key challenges for any international implementation is handling export compliance and custom documents based on Ship-to country. • Oracle has come out with XML ITM adapter to interface Oracle to 3rd party export software to do Restricted party screening at order entry such as TradeSphere by Vastera. • In future releases, Oracle is planning to come out with more interface points such as ship confirm. Oracle Application User’s Group

9. Bonded Warehouse • Most of the companies in EU use a bonded Warehouse to defer custom duties. • Materials stocked in inventory can be classified as either Bonded or Free by one of the following: • Inventory organization • Sub-Inventory • Locator • For bonded material, need to capture Dossier number at the time of receipt and to report the same number at the time of shipment. • May need to use a DFF to capture Dossier number at time of shipment. Oracle Application User’s Group

10. Intrastat Reporting • Intrastat reporting is a local statutory reporting requirement that needs to be done for all movement of materials within EU countries. • Oracle has provisions to capture statistics for most material transactions (such as COO, weight, volume, dimensions, quantity, etc. by part number) • Most companies have not been happy with the delivered reports and end up capturing additional information in DFF and developing their own report to support their own business model. Oracle Application User’s Group

11. Country of Origin • In EU, capturing COO is a regulatory requirement. • COO should be traceable from receipt of inventory to Shipment. • 2 Options to capture COO: • Use standard COO field at the time of receipt and use DFF to capture at the time of shipment • Use locator flexfield to store COO as one of the segments. (This allows to trace COO at any point of time and also enables preferential picking based on COO.) Oracle Application User’s Group

12. VAT & Triangulation • VAT is more complex than sales tax because VAT varies based on Ship-from Legal entity, Ship-to country/state, selling entity, operating unit, and product. • Use rules to determine Triangulation statement to print on invoices and associated VAT calculation. • VAT can be calculated in Oracle using: • Sabrix • Custom Value set and program logic to derive VAT and triangulation Oracle Application User’s Group

13. Multi-Currency Price List • Not just for Europe. • Challenge: maintain standard price lists in different currencies is time and labor intesive • New functionality in 11.5.8 allows you to maintain price list in your functional currency and Oracle converts orders placed in different currencies using exchange rates stored in GL. • Refer to October and November newsletters for details on the configuration setup required. Oracle Application User’s Group

14. Contact Us Lourdes Godfrey StratITgy International Principal Consultant 404-312-8668 godfreyhouse@mindspring.com Arul Murugan enrich IT Principal Consultant 404-723-1405 arul@enrichit.com Oracle Application User’s Group