Shared Services is the latest hot button for large corporations. To focus on their core competencies and to increase their operational efficiency, the large corporations are consolidating their non-revenue administrative departments into Shared Services Centers.
Telkiteís Shared Services offering is a start-to-finish solution that enables midsize companies to achieve operational efficiency and focus on core competencies of their business.
A pre-assessment analysis of existing operations will be conducted to assess the organizationís preparedness for the shared service. As part of this assessment, a location analysis is conducted to determine where and how to locate the shared service department. Different approaches are considered to determine the best possible option for the customer.
The consolidation into shared services will have an impact on organizational culture, resources, current policies and procedures. To assess the performance of the shared services offering, key operational metrics are gathered and compared with the existing departments. These metrics are also helpful in determining the service level agreement of the shared service department.
Our implementation team will assist you with the strategy, planning and execution of the shared service solution customer in different areas of operations.
Global Chart of Accounts and Consolidation
Technological advancement has broken the geographical barriers for a company to become global. Due to numerous laws and regulations, companies need to present their financial reports on time to various shareholders of the company. Today, companies are attempting to consolidate multiple instances of their financials system into a single instance. A single instance with multiple charts of accounts will help in reducing the financial statement consolidation. However, a global chart of accounts will help the companies in consolidating their financial books on time.
An analysis of the existing chart of accounts, sets of books, and period closing process is reviewed and analyzed to devise a strategy for a global chart of accounts. The creation and maintenance of accounts, security and cross validation rules are to be discussed in detail as part of the global chart of account design strategy. This detailed discussion should result in a policy and procedure for creating and maintaining the accounts from a single location for better control and compliance.
Translation, revaluation and multiple reporting currencies are the options available in consolidating the multiple sets of books with different foreign currencies. The translation and revaluation policies and the process of loading and maintaining the exchange rates are also critical for the consolidation of multiple sets of books.
A global charts of accounts and consolidation will help companies achieve their financials efficiency and comply with the financial reporting on time.
Oracle Internal Control Manager (ICM)
Business scandals and lapses have damaged the investorís confidence in US public markets. To restore public confidence in US stock markets, Congress passed the SarbanesOxley Act of 2002 (SOX) to improve corporate responsibility. This Act aims to strengthen corporate accountability by effective internal checks and balances. To comply with SOX, companies need to review the risks that may affect their business and document the controls to mitigate these risks. Oracle Internal Control Manager is part of Oracle Financials and is a comprehensive tool to aid companies in documenting and testing their internal controls. This tool will help in monitoring the SOX compliance.
Oracle Internal Control Manager allows users to load the process, associated risks, controls, audit procedures and related business process documents. The users can review and approve these process-related objects using a workflow based approval management system. This is the first step towards compliance. With the audit option available in this module, the internal auditor/external auditors can assess the various business processes for their effectiveness in complying with the Act. Also, auditors can review segregation of duties created in Oracle Applications and ICM will allow the detection of any violation that has occurred in segregating the duties.
The business owners can review the process, associated risks and controls on a periodic basis to certify them for compliance. The signing authority can review the business process to certify the financials statements for publishing.
Multiple Reporting Currencies
Multiple Reporting Currencies (MRC) is a unique feature offered by Oracle Financials to maintain a transaction in multiple currencies at the same time. This feature will enable a company located in hyper-inflationary countries to maintain their books in local currency as well as their main functional currency.
This functionality is useful for companies that need to report in both functional and foreign currency due to legal and statutory reasons. Prior to the availability of the MRC option, the user needed to translate the GL balances into functional currency and consolidate their financials books. With MRC, the foreign currencies transactions are translated into functional currency immediately.
The MRC feature was beta tested in earlier releases of Oracle Applications and major changes have been made in the current release to make it easier to use and maintain. In the current release of Oracle Applications, the users can view the transactions in both functional and reporting currencies in the same screen. Also, the reports are enhanced to provide the option of running reports in both currencies.