Reorganization

Business Pain

Continuous business changes (mergers and acquisitions, regulatory requirements, divestitures, new business initiatives, reorganizations, and global expansion) quickly force enterprises to reevaluate what data they need and how that data is structured in the systems that support their operations. Companies are looking to leverage the information in their existing systems and track their key performance indicators in different ways. However, changes to the underlying structures and setups for large systems are difficult to do. All the data is related and there is little documentation available to help businesses understand the impact of making a change and to mitigate the technical risks of compromising the data integrity.

Many of the “features” that are inherent in Oracle’s E-Business Suite to make the core functions and processes adaptable to any business environment function the same way that a genotype does in creating an organism. Changing one genetic characteristic thereafter changes the makeup and interrelationships of all parts of the organism. An explicit example of this is the configuration of a multi-org environment. When companies originally set up multi-org in Oracle’s E-Business Suite, security and control were the primary drivers for separating data into different operating units. Plants wanted to run their own operations, negotiate their own contracts with suppliers, and set up their own invoicing, inventory and receiving practices. Moreover, there was a competitive environment among different divisions, product line operations, and general managers. One part of the company did not want another part to see the transaction detail. Little attention was paid to maximizing the purchasing power of the entire enterprise to negotiate better terms and discounts with common suppliers. As a result, companies often set up hundreds of operating units, each with its own freight carriers, matching tolerances, approval hierarchies, supplier terms, and contracts. It was difficult to determine how much business was conducted with a particular supplier, difficult to determine the enterprise cost of managing and maintaining different supplier relationships, and the burdened costs of different inventories. There is no mechanism in the Oracle Applications to change the org unit, or for that matter most of the other configurations, once transactions are entered into the system.

When structures in E-Business Suite are different than those required for financial reporting, companies create hundreds of manual adjusting entries and spreadsheets to reconcile and to move transactions around and align their reporting with their organizational structure. Each of these manual reconciliation methods disperses the “true” data and dilutes the accuracy inherent in a single source of truth, costs money, and lengthens the close cycles for operations.

• Large companies frequently reorganize, often requiring 10 – 20 employees full time each quarter to redefine their hierarchies and business structures.
• Changes and reorganizations in a large company are driven by mergers and acquisitions, divestitures, changes in legal structures, tax incentives, regulatory changes, and HR changes.
• Changes in E-Business Suite R12 make it easier to view transactions in different ways using subledger accounting and to consolidate multiple companies sharing a ledger. In R12, Multiple Organizations Access Control facilitates sharing of information across the organization. Legal Entities have become the compliance arm of enterprises, structured to reflect different regulatory requirements, tax structures, and accounting methods. The R12 changes have forced companies to rethink their current structures, optimize their operations, and redefine the corresponding configurations in their E-Business Suite.

eprentise Solution

eprentise Reorganization software allows companies to change their configurations in Oracle E-Business Suite. Companies can use eprentise Reorganization to move transactions to different sets of books or ledgers, to restructure, combine, or separate their legal entities, business groups, or operating units, or to change calendars. Changing configuration data may mean shorter close cycles, more accurate reconciliation with supporting subledger detail, enhanced security, and a system that is more closely aligned with the business structures.

• Reorganizes transactions for all history and in all subledgers based on an unlimited number of built-in or user-defined business rules (100,000+ built-in rules included).
• Moves transactions to different sets of books or ledgers, restructures, combines or separates legal entities, business groups, or operating units, or changes calendars for easier financial reporting or in preparation for a major upgrade.

eprentise Value

• eprentise's MetaData Analysis and Knowledge Repository understand every relationship between each data element in the E-Business Suite database, allowing it to maintain data integrity.
• Reorganized transactions are populated everywhere in the database.
• Users can define an unlimited number of criteria and Boolean logic to change setups and organizational hierarchies.
• eprentise is packaged software, not scripts written by a consultant who may have never done this before or may not be familiar with a certain EBS module.
• eprentise software is reusable, and user-defined rules may be preserved for future use.
• eprentise software is fast, less expensive than consulting efforts, and eliminates the risks of compromising the data integrity.

eprentise Competitive Advantage

• Avoids a reimplementation
• Changes are reflected in all transactions
• Maintains history
• Determine the impact of reorganizations and configuration changes