adobe captivate - oracle · web viewslide 3 - oracle financials cloud release 11 slide notes hello,...

Adobe Captivate Saturday, May 20, 2023

Slide 3 - Oracle Financials Cloud Release 11

Slide notes

Hello, my name is Prescilla. Welcome to training for Release 11.

In this session we will talk about what is available in Oracle Financials Cloud for Establish and Manage Standalone Selling Prices.

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Slide 4 - Agenda

Slide notesFor 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

Slide notes• Our solution supports establishing observed standalone selling prices (OSSP) as well as estimated selling price(ESP).

• OSSP is usually calculated using median value of qualified standalone sales within a given period. Industry standard guideline for OSSP suggested that the calculation must be based on at least 30 standalone sales with 80% of the selling price of those standalone sales falls into the range of plus or minus 15% of the median value. Otherwise, the calculated OSSP value is considered as ‘Not Exist’.

• Note that the minimum standalone sales count of 30, and the 80% requirement for the range of ‘plus’ and ‘minus’ 15% are configurable in our application, based on your business needs.

• When the OSSP value does not exist (mostly for a new product that has just been launched to the market) or cannot be calculated, the company may use ESP to substitute that, in case where there is a comparable product or service offered in the market.

• Our solution offers the engine to calculate OSSP automatically, as well as provide spreadsheet interface should you need to upload directly into the system.

• We also provide a spreadsheet interface that can be used to query and review all standalone selling prices that have already been established.

• We also can modify the manually uploaded SSPs if they are not used in the compliance processes.

• Please note that in these trainings, we are using the term Standard Selling Prices (SSP) to indicate either OSSP or ESP.

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Slide 6 - Manage Observed Standalone Selling Prices

Slide notes• To calculate OSSP, imported standalone sales are grouped in to a set of qualified standalone sales by Item type, Unit of Measure, Currency, and Pricing Dimension value.

• Pricing Dimension value is basically the dimension in which your company comes up with a pricing plan for any particular item apart from its Item Number, Unit of Measure, and Currency. For example, item might be priced differently based on its selling geographic region, or customer segmentation.

• You may choose to exclude certain set of standalone sales from OSSP calculation, such as internal sales, online sales and then re-run the calculation to see how this will effect your OSSP.

• The calculated OSSP is presented with status value of either ‘Suggested Valid’ in case the value meets minimum number of standalone sales required and 80% of its selling price falls into the range of plus or minus 15% of the median value. The status would be ‘Suggested Invalid’ should either of the two criteria is not met. This would be based on the configuration of standalone selling price profile.

• In addition to that, we also present analytical graph as well as trend analysis so that you gain more insights into the nature of sales being included in the calculation.

• Based on the suggested OSSP status, the revenue manager may choose to either ‘establish’ (which means approve) or ‘not to establish’ the value. All of these actions with excluded standalone sales justification are captured within the system for auditing purpose.

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Slide notes• Effective Period is the date range, in which the OSSP would become effective for. In other words, the values will be used in the revenue recognition process during that period of time.

• Coverage Period is the date range of the qualified standalone sales that were included in the calculation of OSSP. It may or may not be overlapping with the Effective Period, depending on your company policy. Note that Coverage Period is only applicable to OSSP and not to Estimated Selling Price because calculation of OSSP is based on standalone sales.

• In the illustration, the coverage period is 6 months, starting from January to June, while the Effective Period is also 6 months starting from July to December.

• This means that the system used 6-months-standalone-sales belonging to January to June in order to calculate OSSP. Once the value has been established (i.e. approved), it can be used as standard selling price for the period of July to December.

• Different companies may have different policies for coverage period and effective period for different items. All these parameters are configurable in the Manage Revenue Price Profile page which shall be discussed next.

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Slide 8 - SSP Representation

Slide notes• The standalone selling price also known as revenue price in Revenue Management can be represented in multiple forms. It can be represented in the form of

1) unit price – used when you have separate price list for each category of customers

2) discount percentage of unit list price – used when you have a standard price list for your products and services and you have standard discount policy based on volume purchased or deal size or customer category or any other factor that is relevant for your business.

3) gross margin percentage – used for non-standard professional services where every deal is unique in terms of scope of work, resources required and duration of work and your pricing policy for such services is to charge a price to the customer that gives you a standard gross margin percentage on the entire deal.

4) percentage of base unit price – used for after sale services for your products where the price of the service is calculated as a percentage of the selling price of the product sold.

• What form to use depends on the way you price your products and services.

• You have to specify the Standalone Selling Price Representation in your Standalone Selling Price Profile.

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Slide 9 - Standalone Selling Prices Process Flow

Slide notesLet’s look process flow for arriving at the standalone selling price –

• Firstly, the sales are separated as standalone sales if

• The accounting contract has a single performance obligation or

• All the performance obligations in an accounting contract are for the same good or service.

• These standalone sales are grouped as standalone sales pool based on effective period, pricing dimension and item classification.

• Secondly, user has to run the program ‘Calculate Observed Standalone Selling Prices’ to calculate the OSSP based on the setup defined in standalone seling price profile.

• Thirdly, the calculated OSSP can be reviewed by the user for further actions – to recalculate or to investigate.

• Lastly, approve the OSSP by establishing it.

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Slide notesNow, let’s talk about the business values that ’Manage Observed Standalone Selling Prices’ brings in –

• The first challenge is that most of our customers still use manual or semi-manual process to calculate OSSP, which is very time consuming. By using our solution, the extraction, aggregation (or the grouping of like-sales) are automated, thus tremendously increasing your revenue department’s productivity as well as efficiency.

• Secondly, the process to review the OSSP, and determine if the value should be considered or not, most of the cases is not a one-time process. Quite often, it involves a couple iterative processes in order to exclude certain internal sales, or adjust observed standalone sales pool set value criteria. By performing this manually, it is prone to human error. Our solution provides very easy-to-use UI interface so that revenue analyst or revenue manager can quickly and easily review and determine qualified standalone sales. And if changes need to be made, our solution seamlessly integrates auto-recalculation of OSSP and provides the value immediately.

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Slide 11 - Create Standalone Selling Prices

Slide notes• The ‘Create Standalone Selling Prices’ can be used to upload your standalone selling prices (SSP) or Estimated Selling Prices (ESP) directly into the application.

• This process assumes that the approval of these manually uploaded values already happened offline (or outside the application); thus any SSP uploaded using the spreadsheet are considered ‘Established’.

• The spreadsheet can be downloaded from the standalone selling price profile page. In this page, you may choose one or more selected items of the assignments table. If you select no item, the template will pre-populate all items in the spreadsheet for you.

• The downloaded spreadsheet will display the items with relevant information. The header region gives the context information about the profile and effective period.

• SSP values can be entered in the SSP column and uploaded.

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Slide 12 - Manage Standalone Selling Prices in Spreadsheet

Slide notes• The ‘Manage Standalone Selling Prices in Spreadsheet’ is a central location to review SSPs of any item in any given period. You may also use it to compare the values of items across periods as well.

• You can also use this spreadsheet to edit any SSP, which were manually uploaded, that have not yet been used in any accounting contracts.

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Slide 13 - Create and Manage Standalone Selling Prices in Spreadsheet

Slide notesLet’s look at the business values that Spreadsheet Interface for create revenue prices and manage revenue prices brings in –

• First of all, the migration of your enterprise’s existing OSSP or other methods of SSP would never have been easier. We provide a very easy-to-use spreadsheet that you can directly key-in the values and upload to Revenue Management application. There is no need to worry about bringing in all standalone sales just to re-calculate OSSP value for the previous periods again.

• Secondly, of course there are cases where the enterprise is not able to establish OSSP values, especially fro the new products, which have never been sold or would never been sold as standalone sales. In this case, you can use the spreadsheet interface to directly upload the standalone selling prices directly to the application. The values uploaded are considered approved (in other word, ‘established’), thus no need for approval process again.

• With the two key solutions we offered above, Revenue Management provides a centralized SSP repository; thus user gets a complete view of the standard selling price trend of any items across periods without going to multiple sources of truth.

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Slide 14 - Summary of Capabilities

Slide notesHere is the summary of the features I have talked about today –

• Manage Observed Standalone Selling Prices – Automatically calculate OSSP for the products and services. Create pools of standalone sales categorized by the way your organization stratifies the data for the purpose of pricing and calculating the SSPs. Review system calculated values, make necessary changes and re-calculate, and when satisfied, establish the OSSP values.

• Create Revenue Prices – Manually upload standalone selling prices as revenue prices which are approved offline.

• Manage Revenue Prices in Spreadsheet – Manage or edit manually uploaded SSPs which are not yet used in any contracts.

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Slide 15 - Implementation Advice

Slide notesIn 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 16 - Feature Impact Guidelines

Slide notesThis table depicts key upgrade information for the features covered in this training.

All the features covered are automatically available after upgrade.

All the features has setup up revenue price profile setup associated.

All features can be accessed through existing shipped job roles.

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Slide 17 - Setup Summary

Slide notesThe setup for OSSP calculation and creating or managing revenue prices is achieved by completing the Standalone Selling Price Profile Setup.

The other related setups

- Manage Revenue Pricing Dimension Structures

- Manage Revenue Pricing Dimension Assignments

- Manage Pricing Dimension Bands

- Manage Revenue Item Groups

- Manage Revenue Price Effective Periods

- Manage Standalone Sales Pool Exclusion Rules

are explained in the Configuration of Revenue Management Release Training.

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Slide 18 - Manage Observed Standalone Selling Prices – Setup Detail

Slide notes• The Standalone Selling Price Profile depicted as Revenue Price Profile here governs the key setup attributes of Pricing Dimension structure to be used, standalone selling price representation type (such as ‘unit selling price’, or ‘discount percentage of the selling price’).

• It also consists of the list of items assigned to the profile. Any item that you need to establish the SSP for (either calculated OSSP or manually uploaded using the spreadsheet), you would need to assign them to a revenue price profile.

• In addition to that, for each item, you need to specify the number of months to be covered in the calculation of OSSP and whether to include effective period in coverage period or not.

• You’d also specify when you want the system to consider the OSSP as ‘Valid’. This includes the high and low percentage of tolerance range together with its minimum coverage percentage required.

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Slide 19 - Job Roles

Slide notesThis table details the shipped job roles that will access the new capabilities covered in this training.

The associated duty roles of a Revenue Manager are –

- Revenue Management Administration Duty

- Revenue Management Inquiry Duty

- Revenue Management Revenue Adjustment Duty

- Revenue Management Setup Maintenance Duty

The associated duty roles of a Revenue Analyst are –

- Revenue Management Inquiry Duty

- Revenue Management Revenue Adjustment Duty

- Revenue Management Setup Maintenance Duty

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Slide 20 - Business Process Information

Slide notesThe business processes associated with the new capabilities covered in this training are detailed here.

The high level business process is Manage Customer Revenue Life Cycle with activities Calculate Observed Standalone Selling Price and Upload Standalone Selling Prices via Spreadsheet.

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Slide 21 - Associated Release Training

Slide notesOther training modules that are related to these new capabilities and are recommended viewing are –

• Introduction to Revenue Management

• Revenue Management Coexistence

• Contract Management

• Configuration of Revenue Management

This concludes this presentation, thank you for listening. You can easily pause and rewind any of these slides if you require additional time to take in the detail.

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