Infosys’ blog on industry solutions, trends, business process transformation and global implementation in Oracle.

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Shared Service Process in Payable- Road Towards continuous Improvements

IT Shared service offer the potential for significant cost savings through economies of scale,process improvements and standardization. Shared services can help companies reduce costs through greater efficiency

In Oracle world, using shared service process coupled with new features of release 12i, organization can now increase their flexibility and responsiveness to market especially by automating processes and streamlining administrative functions apart from reducing overall costs

Lets explore now, what road Oracle has provided to help organizations to move towards continuous improvements and reduce overall cost in current economic meltdown.

 In typical scenario of accounts payables implementation,earlier organizations used to find following roadblocks during implementation of shared service process 

  • Multiple Roles and Responsibilities
  • Less Automation in Accounting Entries
  • No centralized tax engine
  • Integration of Master Data Management
  • Complicated Reporting
  • Less Control

To address all this roadblocks, Oracle has come with various features in Release 12i to help organizations to further enhance its efficiency and effectiveness in shared service process. Some of key features are

  • Multi Org Access Contro (MOAC) features leading to Improvement in Transactions Processing and Control due to less roles and responsibilities
  • Sub Ledger Accounting (SLA) is a Rule based accounting features leading to more accuracy and control. It helps to generate accurate accounting entry based on data input without any customization and users intervention
  • Third Party Architecture helps in integrating various master data management across differemt systems
  • Centralized tax engine providing more automation in defaulting tax code based on various logics and ensuring error-free transaction as no direct users involvement needed.

In shared service world all above features will further translate into process improvements, better control, enhanced effectiveness and efficiency leading to overall cost reductions  

Illustration has been provided below to further eloborate on how new features will increase efficiency and effectiveness of shared service process 

Before 12i, Users has to navigate in different responsibilities to enter invoices meant for different companies/operating unit. For e.g. to enter invoice for Operating Unit A, he has to login into "Payable Manager Operating Unit A" and to enter invoice for operating Unit B, he has to login into "Payables Manager Operating Unit B". Using MOAC, now users at shared service center are no longer required to switch responsibilities. Based on access provided to him, within same responsibilities, he can enter invoices meant for various operating unit thus leading to improvements in transactions processing and better control.

Earlier, before 12i, there were limitations to have multiple liability accounts or to default accounts based on various parameters etc. Hence in shared service scenario, users has to remember what company and what relevant accounts to choose. Now using SLA, this accounting is fully automated. In SLA accounts are derived based on rules engine giving more control and accuracy in process. In SLA based system, user do not have to worry about which Org/Company to choose, what natural account to select. All this is automated by defining derivation rule using different permutation and combinations of data available in system. Now, users have to just key in invoice amount and distributions and everything else is taken care by system.

 

 

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