Slide 3 - Oracle Inventory and Cost Management Cloud Release 11
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Hello, my name is Karthik. Welcome to training for Release 11. In this session we will talk about what’s coming in Oracle Value chain Cloud for Multi node financial orchestration flows.
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Slide 4 - Agenda
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For the enhancements covered in this training, we’ll give an overview, followed by more detail to explain how you can use them, and what business value they bring. Then, we’ll walk you through a demonstration. Next, we’ll explain what you need to consider before enabling these features in your business, and what you need to know to set them up.
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Slide 5 - Enhancements Overview
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Supply Chain Financial Orchestration was released as part of Supply Chain Management in Release 9 to orchestrate financial flows resulting from complex supply chain transactions. It replaced the Inventory's Intercompany solution for Global Procurement, Inter-Org Transfers and complex shipment transactions.
In Release 11, we have added an enhancement to support multi node financial orchestration flow, which we will see today. SFO's solution for Release 9 did not support more than one pair of internal organizations while defining the financial orchestration flows. After multi node support enhancement, we will now be able to route the financial orchestration flows across multiple nodes.
Let us go through this example to explain this concept. Vision Corporation is a global, high-tech product design and manufacturing company with headquarters in New York. A lot of the components are manufactured in its Manufacturing facility in China, which offers significant cost advantages.
The Sales Orders for customers in USA are created in the New York sales office. These sales orders are directly fulfilled from the warehouse in Chinese Manufacturing Plant. Since the corporate tax rates in China and USA are significantly higher, the trade between the Chinese manufacturing facility and the USA Sales Office is always routed through Singapore Regional office to reduce the overall exposure to taxes. This could be achieved through effective transfer pricing policies. Please note Supply Chain Financial Orchestration does not aid to design or optimize the tax efficiency of your supply chain. Your tax consultant will help you to design a tax efficient supply chain route for your business. Supply chain financial orchestration will help you to model and automate the execution of this tax efficient supply chain.
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Slide 6 - Multi-Node Financial Orchestration Flows
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Supply Chain Financial Orchestration allows you to define the financial orchestration flows spanning across multiple ownership change points for a single movement of goods. Each ownership change point in the flow is governed by a relationship called the financial route. This relationship specifies what transfer price to use and what documentation and accounting is required to record the series of intercompany sales.
You can now add multiple financial routes under a primary route.
Once the setup is defined, the execution of the financial orchestration is automatically triggered by the physical transactions in the supply chain flow. Once the Inventory transactions are listened to by Supply Chain Financial Orchestration, it identifies the financial orchestration flow applicable for this transaction and automatically generates the invoicing and accounting tasks between the all the pairs of internal parties.
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Slide 7 - Multi-Node Financial Orchestration Flows
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By allowing users to model complex structures through this enhancement, Supply Chain Financial Orchestration helps you to achieve significant tax savings and also mitigate country specific risks. Such an arrangement also helps in taking advantage of low cost production facilities.
All these complex transfer price calculations and financial transactions are created automatically in the background by Supply Chain Financial Orchestration thereby helping to improve efficiency among financial and supply chain staff in your organization.
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Slide 8 - Multi Node Financial Flows Demonstration
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Now let’s go to a demo that will show you how these enhancements can be used by your business.
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Slide 19 - Implementation Advice
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In this implementation advice section, we will go through what you need to consider before enabling these features in your business, and what you need to know to set them up.
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Slide 20 - Feature Impact Guidelines
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This table depicts key upgrade information for the new features covered in this training.
Multi node financial orchestration flows feature is automatically available after upgrade, accessed using the shipped job roles and has no setup associated with it.
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Slide 21 - Job Roles
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Supply Chain Controller is the shipped job role that will access the new capabilities covered in this training.
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Slide 22 - Business Process Model Information
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The business processes associated with the new capabilities covered in this training are detailed here.
The high level business process is Set up Financial Control and Reporting with activity Define Supply Chain Financial Orchestration.
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Slide 23 - Associated Release Training
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Other training modules that are related to these new capabilities and are recommended for viewing are Introduction to Oracle Fusion Supply Chain Financial Orchestration, Model Financial Orchestration and Automation and Monitoring.
This concludes this presentation. Thank you for listening. You can pause and rewind any of these slides if you require additional time to take in the detail.
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