European Implementations

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European Implementations
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Agenda

• Project Management for International
  Implementations
• Global Implementation Challenges
• Global Design Considerations
• Country Localizations
• AX Module
• International Trade Management
• Bonded Warehouse
• Intrastat reporting
• Country of Origin
• VAT Triangulation
• Multi-Currency Price List

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Project Management

• Considerations
• Global Management Team resources
• Global sponsorship includes sponsor resources
• Local Management Team resources
• Local team includes super users and management
• Communications Plan
• Critical to ensure local communication with
  corporate or global sponsor (status
  reports/meetings, executive steering committee
  meetings)
• Travel frequency / costs
• Conference calling for key meetings / status
  updates

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Challenges

• Challenges
• Time zone differences
• Talk in the morning, e-mail at night. Plan days
  accordingly reverse for European team members.
• Language cultural differences
• Key to visit local office at least once,
  preferably more to build rapport with local
  management and team.
• Dedicated Resources
• Both locally and globally
• Design
• Global design will be implemented locally must
  insure buy-in!

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Global Design

• Considerations
• Chart of Accounts
• Local regulatory charts in Spain, Portugal,
  France, and Italy
• Local statutory reporting and customary business
  processing requirements
• Similarity of business
• Asset Categories
• Common Customer numbering / naming conventions
• Common Vendor numbering / naming conventions
• Standardize business processes
• Infrastructure
• Number of users at each site
• Languages supported

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Country Localizations

• Considerations
• Review all Oracle supplied localizations
• Compare to statutory requirements from your local
  auditor
• Verify all standard regulatory reports are
  provided or supported by Oracle localizations
• While Oracle strives to keep current with each
  countrys localizations, not all are supported
  find out in advance which are not supported, and
  plan accordingly!
• Search Metalink for conflicts between one
  countrys localizations and anothers.

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AX Module

• Considerations
• Specific localization that applies to Southern
  European countries only France, Spain, Portugal
  and Italy.
• Copies all AR, AP, GL transactions to produce
  regulatory vendor and customer transaction
  reports.
• Relies on document sequencing
• Does not fully support multi-org although
  documentation says it does. Need to customize
  reports to support different companies if you do
  not set up separate sets of books for each.
• Has its own configuration requirements, but no
  transaction processing user interface

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International Trade Management

• One of the key challenges for any international
  implementation is handling export compliance and
  custom documents based on Ship-to country.
• Oracle has come out with XML ITM adapter to
  interface Oracle to 3rd party export software to
  do Restricted party screening at order entry such
  as TradeSphere by Vastera.
• In future releases, Oracle is planning to come
  out with more interface points such as ship
  confirm.

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Bonded Warehouse

• Most of the companies in EU use a bonded
  Warehouse to defer custom duties.
• Materials stocked in inventory can be classified
  as either Bonded or Free by one of the following
• Inventory organization
• Sub-Inventory
• Locator
• For bonded material, need to capture Dossier
  number at the time of receipt and to report the
  same number at the time of shipment.
• May need to use a DFF to capture Dossier number
  at time of shipment.

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Intrastat Reporting

• Intrastat reporting is a local statutory
  reporting requirement that needs to be done for
  all movement of materials within EU countries.
• Oracle has provisions to capture statistics for
  most material transactions (such as COO, weight,
  volume, dimensions, quantity, etc. by part
  number)
• Most companies have not been happy with the
  delivered reports and end up capturing
  additional information in DFF and developing
  their own report to support their own business
  model.

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Country of Origin

• In EU, capturing COO is a regulatory requirement.
• COO should be traceable from receipt of
  inventory to Shipment.
• 2 Options to capture COO
• Use standard COO field at the time of receipt and
  use DFF to capture at the time of shipment
• Use locator flexfield to store COO as one of the
  segments. (This allows to trace COO at any point
  of time and also enables preferential picking
  based on COO.)

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VAT Triangulation

• VAT is more complex than sales tax because VAT
  varies based on Ship-from Legal entity, Ship-to
  country/state, selling entity, operating unit,
  and product.
• Use rules to determine Triangulation statement to
  print on invoices and associated VAT calculation.
• VAT can be calculated in Oracle using
• Sabrix
• Custom Value set and program logic to derive VAT
  and triangulation

13
Multi-Currency Price List

• Not just for Europe.
• Challenge maintain standard price lists in
  different currencies is time and labor intensive
• New functionality in 11.5.8 allows you to
  maintain price list in your functional currency
  and Oracle converts orders placed in different
  currencies using exchange rates stored in GL.
• Refer to October and November newsletters for
  details on the configuration setup required.

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Contact Us

• Lourdes Godfrey
• StratITgy International
• Principal Consultant
• 404-312-8668
• godfreyhouse_at_mindspring.com
• Arul Murugan
• enrich IT
• Principal Consultant
• 404-723-1405
• arul_at_enrichit.com