Trucking along with Allocations

and Recurring Journals in

Oracle ERP Financials Cloud

Prepared by: Bruce Gress, YRC Freight

Brad Kwiatek, Grant Thornton LLP

Session ID: 113780

Your presenter

Bruce Gress
Director – Finance, YRC Freight
Overland Park, KS

Executive summary
Bruce Gress is a Director in YRC Freight’s Accounting/Finance organization supporting the company’s
financial systems.
Bruce was Program Director for YRC’s October 2016 implementation of Oracle Fusion Financials Cloud AP
and GL modules. Bruce is now in a similar role for the Oracle Fusion Global Payroll project and continues to
support the Financials modules.
While at YRC Bruce has been in accounting, financial reporting, finance/forecasting and financial systems
roles, including the initial PeopleSoft Financials (AP/GL) implementation and related support.
Bruce is a Certified Public Accountant and prior to YRC was Assistant Controller for a Kansas City based
services holding company and a staff auditor for a National public accounting firm.

April 2-6, 2017 in Las Vegas, NV USA #C17LV

Your presenter

Brad Kwiatek
Director, Grant Thornton
Omaha, NE

Executive summary
Brad Kwiatek is a Director in Grant Thornton’s Business Advisory Services – Oracle Practice. Brad has over
12 years of experience with leading and managing financial transformation projects as well as implementing
Enterprise Resource Planning, Enterprise Performance Management, Business Intelligence, and Data
Management solutions. Brad is a proven thought leader in the delivery of integrated financial processes and
systems. Prior to Grant Thornton, Brad worked for MarketSphere and Intel.

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About Grant Thornton
We are the U.S. member firm of Grant Thornton International, a global organization of member
firms providing audit, tax and advisory services to clients for more than 90 years.

Over 10% revenue growth in

the U.S. last year with a $1.56bn
revenues
13% increase in headcount
PEOPLE

• 35% of the companies on the 2015 Fortune 1000 list

• 39% of the companies on the 2015 Fortune 500 list
• 54% of the companies on the 2015 Fortune 100 list
PARTNERS
• 25% of the companies on the Russell 2000 list

OFFICES

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Committed Oracle partner

Specialized Partner of the JD Edwards Excellence Excellence Award, 2015 (Fusion Middleware JD Edwards Excellence
Year, 2014 (EPM, NA) Award, 2015 Innovation at Serta Simmons Bedding) Award, 2016

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Agenda
• YRC Worldwide Background
• Project Objectives, Approach & Outcomes
• Business process items addressed by
Allocations
• Allocation Configuration & Considerations

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YRC Worldwide Background

YRCW provides services under a portfolio of four operating companies

Collectively, we have approximately 20 - 25% of the public carrier market by tonnage. We provide the broadest coverage and more
service capability throughout North America than any competitor. To put it simply, customers tell us where they want their freight to go
and when it needs to be there, and we take it there; we carry the economy

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North American Coverage

YRC Freight serves manufacturing, wholesale, For next-day and time-sensitive services, we have three
retail and government customers throughout North distinct regional carriers: Holland, Reddaway and New
America. When customers need longer-haul LTL Penn. All three brands are well-established in their
shipping solutions, YRC Freight is the expert respective regions

YRC Freight Metric YRC Regional Metric

FY 2016 Revenue $3.0 billion FY 2016 Revenue $1.7 billion
FY 2016 Adj. EBITDA $140 million FY 2016 Adj. EBITDA $157 million
# of Customers ~125,000 # of Customers ~150,000
# of Terminals 260 # of Terminals 127
Average Length of Haul 1,300 miles Average Length of Haul 400 miles
Average Weight 1,200 lbs Average Weight 1,500 lbs
Average Transit 3-4 days Average Transit > 90% in 2 days or less

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Project Background
• YRC (legacy PeopleSoft customer) made a strategic
decision to replace existing PeopleSoft ERP & HCM
applications with Oracle Cloud ERP & HCM
• Minimize customizations, utilize delivered functionality
• Forced currency, hosted (disaster recovery)
• Single platform, data integration improvement
• Simplify technical landscape
• Supports business functions including General Ledger,
Accounts Payable, Fixed Assets, Financial Reporting,
Core HR, Payroll, and Talent Acquisition & Management

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Project Objectives
• 2016 ERP Go-Live included:
• GL, AP and Financial Reporting out of Oracle Cloud (small
amount of Fixed Assets)
• Replaced inbound and outbound integrations to/from
PeopleSoft (~100)
• PeopleSoft data conversion
• Opportunity to share, simplify and improve business
practices and processes across YRC companies
• Financial project lays the foundation for a unified/single
platform that will have Finance, HR and Payroll.

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Project Approach – Guiding Principles

Traditional Approach Cloud Approach

Requirements Driven Solution Driven

Extend & Customize Adapt Processes

Big Bang Incremental

Waterfall Methodology Iterative

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Implementation Methodology Overview
The project and Grant Thornton’s Methodology is aligned to Oracle's
Unified Method (OUM) and was built on the realization of accelerating the
benefits of implementing a new system and technology by…
• Incorporating best practices
• Ensuring business transformation is
addressed/supported by the system
• Accelerating approach through the use
of deliverable templates and built-in
Cloud ERP tools
• Leveraging Agile development
principles: allow users to visualize and
experience the application early in the
implementation process
• Integrating change and quality
management activities
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Implementation Methodology Detail
Phase Activity/Deliverable
• Confirm strategy, scope and timeline – project plan
Plan
• Project team, roles and responsibilities
• Interactive future state business process workshops
• Initiate conference room pilots (CRP) – configure and test
Design
• Determine specifications for integrations and data conversion
• Define reporting strategy, Security design
• Full application configuration; continue CRP sessions
Build and Configure • Build programs - Interfaces; data conversion extract
• Initiate testing and training planning activities
• Validate application design – complete and accurate
Validate
• Validate data conversions and integrations
• End-user training
Transition • Configure production instance
• Transition operation to production system

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Implementation Timeline
2016
Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct

Phase 0

Process &
Application
Design

Integration & Data

Conversion Design

Application
Configuration

Data Conversion Build

Iterative Integration Build & Test

Validation

Transition

Conference Room Pilot (CRP) Test Go-Live

April 2-6, 2017 in Las Vegas, NV USA #C17LV

Allocation Use Case
Managing the Payroll tax and Vacation / Holiday accrual
and allocation process in Oracle Cloud at YRC
Business process items addressed by
Allocations at YRC
• Payroll tax and Vacation / Holiday accrual and
allocation process
• Needed to be able to utilize a single offset
cost center (e.g. default / “0000” cost center)
• Offset is a liability / Accrual account and
therefore “true” cost center is not valid

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Allocation Configuration - Concepts
• Calculation Manager provides an automated solution
to flexibly distribute revenues and costs across the
enterprise or to record formulaic recurring
adjustments.
• Define rules to generate formula-based journals.
• Leverage references to pre-aggregated multidimensional
balances to maximize efficiency in executing complex
calculations.

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Allocation Configuration – Structure and
Components

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Allocation Configuration – Calculation
Manager Concepts
Concept Description
Source •The source refers to the cost or revenue pool which is used for pro-rating across the allocation
range in an allocation component, or the basis for computation in a formula component.
•Source can be a referenced account balance or it can just be a user defined amount.
Target •The target is the receiver of the allocated or calculated amount.
Offset •The offset is the receiver for the offsetting debit or credit to balance out the generated
allocation or formula.
Validation •The Allocation Manager process of checking the validity of the allocation or formula definition,
such as checking for consistency against the outline of the balances cube it references.

Run Time Prompt •A variable that user supplies the value for before an allocation rule is run. This is a user-defined
(RTP) element at the time of the rule definition and makes the rule highly dynamic and reusable.
• Typically RTP’s are Accounting Period or Primary Balancing Segment Value.
Point of View •The dimensional members (accounting string members) that are static throughout the
(POV) calculation – e.g. the filter or Fix statement (for those familiar with Essbase scripts)

Cross •Used to overwrite the Point of View (POV) and choose different dimensional members for
Dimensional formula equations. Use the POV to select the dimensional members that are consistent across
Operator: -> source, target, and offset but use -> to select specific members for these in the calculation.

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Allocation Configuration – Calculation
Manager Allocations/Scenario Dimension
• For Allocations, there are two specific seeded
scenarios that can be used for step down
allocations. Use either of:
• Allocated - temporarily holds the allocated values
during the rule generation process
• Total for Allocations - the sum of Actual and
Allocated amounts

April 2-6, 2017 in Las Vegas, NV USA #C17LV

Allocation Configuration
• Because allocation engine was being used to
calculate Payroll tax and Vacation / Holiday
accrual at YRC, 2-step process was needed
• First step calculated overall accrual amount
based on established percentage assumptions for
payroll tax as well as vacation and holiday
• Second step allocated the total accrual amount to
individual cost centers based on the ratio of
wages for each individual cost center

April 2-6, 2017 in Las Vegas, NV USA #C17LV

Allocation Configuration - Example
Overall Allocation

April 2-6, 2017 in Las Vegas, NV USA #C17LV

Allocation Configuration - Example
POV

April 2-6, 2017 in Las Vegas, NV USA #C17LV

Allocation Configuration - Example
Formula – First Step

April 2-6, 2017 in Las Vegas, NV USA #C17LV

Allocation Configuration - Example
Allocation Wizard – Second Step: Source

April 2-6, 2017 in Las Vegas, NV USA #C17LV

Allocation Configuration - Example
Allocation Wizard – Second Step: Range

April 2-6, 2017 in Las Vegas, NV USA #C17LV

Allocation Configuration - Example
Allocation Wizard – Second Step: Target

April 2-6, 2017 in Las Vegas, NV USA #C17LV

Allocation Configuration - Example
Allocation Wizard – Second Step: Offset

April 2-6, 2017 in Las Vegas, NV USA #C17LV

Allocation Configuration - Example
Allocation Wizard – Second Step: Basis

April 2-6, 2017 in Las Vegas, NV USA #C17LV

Allocation Configuration - Example
Allocation Wizard – Second Step: Options

April 2-6, 2017 in Las Vegas, NV USA #C17LV

Allocation Considerations
Item Workaround Recommendation
Calculation Results do not appear in If you need to use results of prior step from
Actual balances until results are rule use either Allocated or Total for
posted. Allocations
Cannot post to the exact intersection • Use additional dimensional members (e.g.
more than once (full dimensional string project) to ensure uniqueness
including debit / credit) in a single rule • Write rule taking this into account – e.g.
or ruleset – rule will simply take final use single formula component with
amount and cause unbalanced journal multiple formula lines all with one offset
When submitting Allocations, RTP must be selected from drop-down; you cannot
simply enter the value as Oracle will not recognize it correctly and script will fail
Balance Amount (e.g. Beginning Balance, Period Activity, or Ending Balance) is
important for all member selection components on right side of formula component. If it
is not selected (using cross dimensional operator) results will not be as expected
Using sum result in formula from prior formula step can cause unbalanced journals due
to rounding
Offset and left side / result of formula must be a level 0 member / account in order for
allocation to validate and be able to run

April 2-6, 2017 in Las Vegas, NV USA #C17LV

Allocation Considerations

April 2-6, 2017 in Las Vegas, NV USA #C17LV

Allocation Considerations

April 2-6, 2017 in Las Vegas, NV USA #C17LV

Allocation Considerations

April 2-6, 2017 in Las Vegas, NV USA #C17LV

Allocation Considerations

Required for source only

Net Revenue -> "0000" ->Actual -> PTD ->Period Activity

Account-> Department ->Scenario -> Amount Type ->Balance Amount

April 2-6, 2017 in Las Vegas, NV USA #C17LV

Allocation Considerations

Offset

Target Source

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Q&A
 A 55,000+ member user community for JD Edwards,
PeopleSoft and Cloud Applications customers.

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PeopleSoft RECONNECT and JD Edwards INFOCUS

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Thank you for attending our session!
• If you have any follow-up questions please don’t hesitate
to contact me directly with my contact information
below:

Brad Kwiatek
T: 402.669.8276
E: Brad.Kwiatek@us.gt.com

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Session ID: 113780

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