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Safe Harbor Statement

The following is intended to outline our general product
direction. It is intended for information purposes only, and
may not be incorporated into any contract. It is not a
commitment to deliver any material, code, or functionality,
and should not be relied upon in making purchasing decision.
The development, release, and timing of any features or
functionality described for Oracles products remains at the
sole discretion of Oracle.

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Oracle E-Business Suite

ChRM AR Deductions
Settlement
Archana Vadya
Director, EBS Product Management
Vijay Hotanahalli
Group Manager, EBS Product Management

Program Agenda
Current Challenges
Overview of Oracle AR Deduction Settlement
End to End Flow
Roadmap

Copyright 2013, Oracle and/or its affiliates. All rights reserved.

Release 12.1 Channel Revenue Management

Accounts Receivables Deductions Settlement
Manages complete settlement lifecycle for financial programs and AR disputes
Channel Rebates and Point of Sale Management
Manages complex pricing agreements and revenue management for direct

selling programs
Imports, validates and cleanses channel POS data to track 3rd party
inventories and validate complex pricing agreements based on indirect sales
data
Supplier Ship and Debit (New in 12.1)
Automates special price requests for wholesale distribution and streamlines
ship and debit claim process
Price Protection (New in 12.1)
Orchestrates price protection processes when supplier changes price of
product
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<Insert Picture Here>

Accounts Receivable
Deductions & Settlement

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World is Changing
Deductions can be difficult to research and settle
$10 Billion annually in the US
alone
Growing 20% per year
~14% are found to be invalid
~5% per year are written off

Communication

BackOffice Integration
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Dispute investigations are manual

and labor intensive
Many Financial systems lack
visibility into claims and dispute
resolution status
Customer compliance mandates
around claims processing on the rise

Quick Win Manual Cash Application

CHALLENGE
CASH APPLICATION
Laborious Process
Prone to Errors
Time Consuming

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QUICK WIN
AUTO LOCKBOX
Automatic Receipt &
Deduction Creation
Match 90% or more
remittances
Huge time and resource
saving opportunity

Quick Win Open Balance Netting

CHALLENGE
CUSTOMER OPEN
TRANSACTIONS
Large open credit & debit
transactions on customer
account
Lack of visibility

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QUICK WIN
MASS SETTLEMENT
Systematic netting process
Effective customer
transactions enquiry
Offset open debits with
open credits

Quick Win Dispensable Research

CHALLENGE
DILIGENT RESEARCH
Avoidable Research
Too many manual tasks
followed by research
Time consuming

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QUICK WIN
RULE BASED SETTLEMENT
Automatic matching of
deductions to credits
Automatic matching of
deductions with open
accruals

<Insert Picture Here>

Overview

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AR Deduction Settlement
Manages complete settlement lifecycle for financial

programs and AR disputes

Increased visibility to outstanding liabilities and claims
Integrated Claims Management minimizes claim
investigation and processing costs, reduces DSO for
disputes
Eliminate invalid claims, reduce costs and invalid
payments
Automate end to end deductions and claims
processing

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Highly Automated
Processes

AR Deductions Settlement
Functionality
Collections
Monitor and
Collect

Chargeback
Accounts
Receivables

Claim Information
Claims
Settlement

Capture
Deductions

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*AR
Deduction
Settlement
Settle
Deductions

Dispute/deduction handling
Rebates Settlement
Promotional Payments View
Complete AR processing
Lockbox integration
Subsequent Receipt
Application
Auto-write offs
Mass Settlements
Claims Aging

AR Deductions Settlement
Enable Claims Analysis
Detection of write-off threshold

Other/Unknown
Reasons

Trade
Promotions

abuse

Identification of Double
Dipping/Payments

Post Audit
Activities

Identification of
process problems

Calculation of total

Various Penalty
Charges

Pricing
Errors
Claims
Repository

Packaging
Issues

cost-to-serve

Claims Aging View

Promotional Balance Tracking

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Product Quality
Problems

Shipping & Dist

Discrepancies

<Insert Picture Here>

Demonstration

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AR Deductions & Settlement

Business Flow
Assign
Owner

Create
Claim/DED

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Research

Approve
& Settle

Adjust
Financials

Minimize the cost and time required to clear claims & deductions
Identify and collect invalid claims
Proactively prevent deductions
Efficiently process promotional payments

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Deduction Creation in AR

Automatic claim creation

in Accounts Receivables

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Summary View for Deductions/Claims

Claims assigned to user

along with other critical
data like claim type,
reason, status, amount.

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Claim Detail View

Automatic Owner
Assignment

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Subsequent Receipt Application

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Claim History

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Associate Earnings to Deductions

Associate Earnings screen

lists all unpaid accruals
for the customer

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Settlement Flow

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Closed Out Claim

Claims in closed status

automatically update your
ERP systems

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AR Credit Memo Details

Settlement document
details are populated back
into AR Deduction
Settlement for easy and
seamless tracking

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Mass Settlement

Mass settlement enables

netting of open AR
transactions

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Promotional Payments

Track Customer Balances

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<Insert Picture Here>

Extensions for Oracle

Endeca

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Open Claims

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Results Table & Claim Details

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Drill Down to Claim Details

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Claims Mass Update- Demo

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Claims Mass Update- Demo

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Closed Claims

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<Insert Picture Here>

Whats New in 12.2.3

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Channel Revenue Management

Simplified User Interface for Key Business Flows
Offers
Improves product ease of use
Consolidate Off Invoice & Accruals
in 1 Offer
Leverages Oracle Applications
Framework

Claims & Deductions

Current year earnings defaults
Single click to resolution
Minimize DSO of disputes

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<Insert Picture Here>

Future Roadmap

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Oracle Applications Planning

Oracle E-Business Suite ChRM Current Release and Roadmap
Release 12.1.3
August 2010
AR Deductions Settlement
New Rule Based Settlement
Full Multi Currency FX GL Calculations
SLA Uptake
Channel Rebates & POS Management
New Flexible & robust accounting rules
Oracle Supplier Ship & Debit
New Flexible & robust accounting rules
Adjustment support for SSD
Costing support for accruals
Oracle Price Protection
Enhanced adjustment & approvals

Whats Next
0-12 month planning cycle
Streamlined flows built with OA Framework
Claims
Offers
AR Deductions Settlement
Endeca Claims Reports
Channel Rebates & POS Management
Performance enhancements for Net
Accruals & Chargebacks
Ability to calculate accruals for POS in
draft mode
Oracle Supplier Ship & Debit
Partial Batch Reprocessing
Backdated Support for direct & indirect
Oracle Price Protection
Inclusion of internal transfers

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Future Directions
Post 12 month planning cycle
AME Integration for all ChRM products
AR Deductions Settlement
Settlement Screens in OA
Ongoing Endeca Integrations
Mass Update Capabilities
Misc. Customer Enhancements
Channel Rebates & POS Management
Completion of Offers in OA
Cascading Offers
Volume Offer ERs to backdating flows
Ongoing Endeca Integrations
Flow through offers
Sellers Workbench with OM
Oracle Supplier Ship & Debit
Vertical Industry Support
Oracle Price Protection
Sell side support

What Customer Are Saying.

BENEFITS:
Reduced Dollar amount of open claims by 74% in a one year period
Reduced Weighted Average Days Open from 135 days to less than 60 days
Able to reallocate 8 resources from claims administration to more value

added cash collections

The benefits of this particular improvement are many. We see increased

productivity, a substantial reduction in cycle time, elimination of manual

processes, and real-time measurement, all achieved through sustainable
automation and standardization of a process

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