Oracle Apps SRF

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Oracle Apps _at_ SRF Feedback Learnings for Way
Forward at SCL November 27 2007
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SRF Profile Oracle Apps Implementation

• SRF Limited
• Established in 1973 with the legacy of DCM
  Shriram group.
• Manufacturing Portfolio
• Technical Textiles Tyre Belting Cords
  Reinforcement Fabrics.
• Chemicals Flourochemicals Refrigrants.
• Packaging Films PET, Metallic Holographic
  films.
• 7 Production units in India 1 in Dubai.
• FY 2006-07 Turnover of Rs 1815 Cr with PAT of Rs
  289 Cr.
• Oracle Apps at SRF
• Implemented Oracle Apps ver 9 in 2002-03 in
  Technical Textiles Packaging Films divisions
  with PwC as Implementation Partner.
• Upgraded to Oracle Apps 11i in 2006-07 across all
  divisions deployed Financials (AP,AR,GL,CM
  FA), Purchase, Inventory EAM (only in Chemicals
  Business) with TCS as Implementation Partner.
• Corporate Office at Gurgaon. IT Central Server
  Hosting at Chennai.

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SRF Nov 23 07 Visit Agenda Methodology

• SRF Oracle Apps Business Domain Team
• Mr Sunil Gulpadia, OA Financial Team Leader, Asso
  VP Finance Accounts
• Mr Rajeev Gupta, OA Team Member, Chief Manager
  Chemical Sales
• Mr KV Varadhrajan, OA Team Member, Chief Manager
  Comml Logistics
• SCL Team
• ERP-Sustainability Mr SK Soni, Rajat Sharma,
  SS Khandelwal, Girish Singhal, Anil Mehta
• SCL Financials Sign-Off Authority Mr K K Jain
• TCS Financials Lead Mr Rakesh Luthra
• Points on Board
• Issues Concerns wrt OA Solution at SCL, and
  methodology adopted at SRF for the same
• Customization Components arising in SCL Solution
  due to OA non-fitment
• Suggestion Seeking from SRF for SCL solutioning
  wrt their OA Experience
• SRF experience with Implementation Partners
  during the OA implementation

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A sample set of Queriesreviewed with SRF in
light of workflowhandling under Oracle Apps
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OA System at SRF wrt SCL Queries
Q 1
QUERY Handling of Multi Payment to Transporters,
Contractors, Employees by Single Cheque
transaction.

• SRF Methodology
• At SRF they generate the payment batch and upload
  the same in the interface provided by the bank.
  Cheques are then printed by the Bank. They are
  using the Cheque nos assigned by the bank, Bank
  is printing the same cheque nos while printing
  the cheques at their end.
• Cheques are printed on A4 size paper, below the
  cheque the despatch advice (detail of Payment) is
  printed. That is, with each Cheque payment,
  related details are printed by the system.
• One Day fixed for Monthly Payments process no
  sundry payments done.

• Way Forward
• Same methodology to be followed at SCL.
• Evaluate EDI transactions
• Conclusion to be drawn with Banks dealing with SCL

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OA System at SRF wrt SCL Queries
Q 2
QUERY Advance against expenses to employees (Like
Tour and other expenses) for deduction from
Salary and Posting to Individual Employees

• SRF Methodology
• Advance taken by Employees
• Expense Bills submitted by Employees
• Balance of Advance (after adjusting expenses)
  refunded in Cash / Cheque by employees.

• Way Forward
• Same methodology can be followed at SCL.

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OA System at SRF wrt SCL Queries
Q 3
QUERY Separate entry to be Passed for Bank
Charges in case of Payment by Demand Draft

• SRF Methodology
• At SRF, Bank is not charging any DD Commission,
  hence accounting for DD commission is not
  required. The Banks operating with SRF are
  Citibank HDFC (wherever Citibank / HDFC are
  existing), and SBBJ (wherever Citibank / HDFC are
  not present).

• Way Forward
• Same methodology can be followed at SCL by
  dealing with the SCL related Banks appropriately.
• If we still require to pay DD commission to
  Banks, we have to pass separate line for DD
  commission in Invoice. DD can be prepared for
  Individual party by single cheque, DD advice is
  to be prepared Manually.

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OA System at SRF wrt SCL Queries
Q 4
QUERY Workload increase in preparation of
Invoices in the OA system for Payments release

• SRF Methodology
• ERS (Evaluated Receipt Settlement) which is a
  standard functionality of Oracle Apps being used
  for Auto-creation of Invoices at the time of
  receipt of materials.

• Way Forward
• TCS to provide the ERS operation functionality
  at SCL
• SCL can adopt the ERS mechanism.

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OA System at SRF wrt SCL Queries
Q 5
QUERY Cash handling under Oracle Apps as it is
perceived that the Cash Book gets posted after
the first level of Cash transaction creation
there are no validations possible with a demarked
stage for release of CASH by the Cashier.

• SRF Methodology
• Cash Book updated in OA when the Invoice
  selected for payment passed.
• Bank Cash payment operations are similar in
  Oracle Apps.
• Oracle Apps provides a standard functionality of
  Pay Group Definitions which can be created for
  different Cash Windows / Cashiers.
• Such Cashiers have been defined in SRF who
  handle the Cash after defined Approval cycles
  Cash disbursement by Cashier with a clear
  demarcation between Cash Transaction Passing
  Cash released by Cashier.

• Way Forward
• TCS to setup the Pay Group operation
  functionality at SCL define the Payment Tx
  Creation ? Authorization ? Payment Release ?
  Cash Book Updation workflow
• SCL can adopt the same mechanism.
• Petty Cash Payment to be handled thru IMPREST.

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OA System at SRF wrt SCL Queries
Q 6
QUERY Freight Cash Payment restriction upto Rs
19900/

• SRF Methodology
• NO CASH FREIGHT payment done at SRF. Only monthly
  freight bills entertained which are received from
  their authorized Transporter.

• SRF Suggestion
• In standard Oracle Apps specific Cash Windows can
  be restricted to specific Cash Limits.
• We can open TWO Cash Books to restrict Freight
  Pyt upto Rs 19900/, One for Freight payment
  handling while the other Cash Book can handle
  other payments.

• Way Forward
• TCS to setup the Cash Payment Limitation
  define the TWO Cash Books for addressal of the
  issue
• SCL can adopt the proposed mechanism.

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OA System at SRF wrt SCL Queries
Q 7
QUERY How to handle the issue of Refunds to
Customers ?

• SRF Methodology
• Cases of Refunds to Customers negligible or NIL
  at SRF.

• SRF Suggestion as per Oracle Standard Practice
• The Customer to whom the Refund is to be done
  has to be created as a Supplier Customer
  Balance to be refunded to the Customer to be
  transferred to this Account vide DR note.
• The DR Note to be Paid in the Ledger. The
  entry in the Ledger shall depict DR Note as the
  Payment details.

• Way Forward
• SCL can adopt the proposed mechanism.

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OA System at SRF wrt SCL Queries
Q 8
QUERY Voucher Hard Copy Printing Voucher
maintenance for Audit purposes.

• SRF Methodology
• Only Journal Vouchers are printed and kept as
  record for reference.
• For other Vouchers, SRF is mentioning the
  Document numbers on the Vendor Invoices or
  relevant support documents.

• Way Forward
• SCL can adopt the same mechanism.

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Conclusions
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Conclusion Learnings

• Oracle Apps is a vast Business Suite with
  numerous alternative solutions work-arounds for
  addressal of issues.
• Therefore, the proposed initial Solution put
  forth by TCS should not be perceived as the
  Final answer.
• If at all, the TCS proposed solution is
  adaptable, we should have the endeavor to explore
  further efficient solution(s) by means of
  Self-exploration of the Oracle Apps modules, or
  seeking referral from other companies / Oracle
  India.
• As can be observed from the SRF Feedback, they
  are highly satisfied with the Oracle Apps
  deployment, and the solution fitment provided
  therein. All the SRF Business Requirements are
  being met fully.
• Therefore, the apprehension of some of our Core
  users that Oracle Apps does not meet most of
  their requirements does NOT hold good.

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Conclusion Learnings

• Another big apprehension about increase of
  workload / manpower also does not hold good as
  SRF (which is also a traditional business house),
  has been able to achieve smart / lean business
  processes after the initial effort increase. In
  case, SCL requires supplementing manpower in the
  initial stage, it would be done for sustaining
  the change.
• SRF has gone through TWO implementations of
  Oracle Apps and have faced similar serious issues
  wrt the placement of inexperienced /
  low-profile Oracle consultants, delayed
  response, sub-optimal solutions, etc. It is for
  us to extract the best of the available
  solutions.
• It is human nature to resist change. As Oracle
  Apps deployment is bound to result in major
  changes for betterment, this is acceptable we
  should be prepared to overcome this aspect.
• The Process Changes required because of Oracle
  Apps should be initiated immediately without
  awaiting the GO LIVE of Oracle Apps, so that
  the process migration becomes easier.

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Questions Please .
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Thank You Keep Smiling !