ORACL E D AT A S H E E T

KE Y F E AT U RE S

• Create contracts for services with complex payment terms

• Incorporate progress payment schedule into services contracts

• Track and report progress based on schedule

• Release progress payments

• Recoup advance payments

• Apply retainage to complex services invoices

• Rate cards and job-standardization

MAST E R C ON T R AC T N E GO T I A T I O N

• Online negotiation definition

• Team collaboration

• Multiple attribute bid analysis

• Seamless master contract creation from award

• Terms and conditions capture

• Location-based rate capture

• Rate differentials capture

• Configurable sourcing rules

• Integration with Oracle Procurement Contracts for advanced contract creation and enforcement

Oracle Services Procurement

Oracle® Services Procurement is the application that enables complete

control and oversight for services spending. It is a key component of Oracle

Advanced Procurement, the integrated suite that dramatically cuts all supply

management costs.

Control Services Spending

Although most organizations spend a large share of total budget on services, few have

the same visibility and management of services costs as they do for goods and

materials. For even the most efficient enterprises, services spending can be a thicket of

unsourced buying, lost savings opportunities, and limited oversight from the Purchasing

department. Oracle Services Procurement brings full Purchasing oversight to services.

By simplifying services procurement with online processes, your organization can save

money on all services categories, from general business services to contingent labor

and complex, project based services. Oracle Services Procurement helps you source

and manage services for maximum savings.

Figure 1: Oracle iProcurement Requisition Checkout Information

With Oracle Services Procurement you can:

•••• Maximize Preferred Supplier Savings

•••• Eliminate Over-billing and Over-runs

•••• Create Visibility into Services Spending

rocurement

Oracle® Services Procurement is the application that enables complete

control and oversight for services spending. It is a key component of Oracle

Advanced Procurement, the integrated suite that dramatically cuts all supply

Although most organizations spend a large share of total budget on services, few have

of services costs as they do for goods and

materials. For even the most efficient enterprises, services spending can be a thicket of

unsourced buying, lost savings opportunities, and limited oversight from the Purchasing

rement brings full Purchasing oversight to services.

By simplifying services procurement with online processes, your organization can save

money on all services categories, from general business services to contingent labor

ices. Oracle Services Procurement helps you source

: Oracle iProcurement Requisition Checkout Information

2 | ORACLE SERVICES PROCUREMENT

S ER V I C E S R EQ UE S T

• Preferred suppliers list

• Business services request definition with information templates

• Contractor request definition

• Fixed prices request

• Rate based request

• Services details capture

• Visibility to pre-negotiated rates and terms

• Configurable approval rules

• Automatic route request to suppliers

• Pre-built suggested supplier list

REQU I S I T I O N A N D P U RC H AS E O RD E R

M AN AG EMENT

• Purchase order change request

• Purchase order versioning

• Requisition withdrawal and cancellation

• Procure-to-pay lifecycle tracking

• Purchase order, timecard, invoice, payment, receipt

RE SO UR C E A N D PR O J EC T

M AN AG EMENT

• Resource portal

• Contractor performance tracking

• Automatic budget threshold alerts Automatic alerts for assignment nearing completion

• Timecard summary and details

S ER V I C E S R EC E I P T A ND T I ME

T RACK I NG

• Online self-service contractor timecards

• Multiple receipt types

• Timecard, services receipt

• Automatic purchase order compliance

• Timecard approval routing approval

• Flexibility for contractor assignment and time reporting

• Auto receipt generation based on

Maximize Preferred Supplier Savings

Oracle Services Procurement helps you create better agreements with preferred

suppliers, directs spending to those suppliers and lowers processing costs through close

supplier collaboration.

Create and Enforce Better Agreements

Establishing and maintaining master agreements with services vendors is critical to

realizing bottom-line savings. With Oracle Services Procurement, you can

manage all aspects of your services business arrangement utilizing

contingent labor, that includes appropriate rates, terms, job information and more. For

complex services such as construction or professional services you can de

terms, progress payment schedule, financing advances, financing advances

recoupment and retainage rates for services settlement. The ability to define, manage,

control, and track these contract elements keeps lead times and costs in check whi

preventing cost overruns.

Figure 2: Order Summary

Establishing and maintaining master agreements with services suppliers are crucial to

driving bottom line savings. Yet it can be challenging because master agreements often

contain elements that are specific to a given category of services. That’s why Oracle

Services procurement lets you define and manage important aspects of your services

contracts. For instance, with contingent labor you can include negotiated rates, terms,

job information and more. For complex services like construction where payment is

critical, you can define payment terms to include progress payment schedule, financing

advances, and financing advances. The ability to control and track these elements

keeps lead-times and over-runs in check.

Enforce Preferred Supplier Use in Every Requisition

Even the best master agreements are useless unless users consistently order services

through preferred suppliers. Oracle Services Procurement’s requisition process

users to rate-cards with preferred suppliers right from the initial request, funneling orders

to preferred suppliers so that services are sourced to the correct supplier at negotiated

rates every time, leading to job standardization. For services

requisitioned by employees, you can create an approved vendor list that may contain

O R AC L E D AT A S H E E T

Oracle Services Procurement helps you create better agreements with preferred

lowers processing costs through close

Establishing and maintaining master agreements with services vendors is critical to

With Oracle Services Procurement, you can define and

utilizing contracts. For

contingent labor, that includes appropriate rates, terms, job information and more. For

complex services such as construction or professional services you can define payment

terms, progress payment schedule, financing advances, financing advances

recoupment and retainage rates for services settlement. The ability to define, manage,

control, and track these contract elements keeps lead times and costs in check while

Establishing and maintaining master agreements with services suppliers are crucial to

driving bottom line savings. Yet it can be challenging because master agreements often

ntain elements that are specific to a given category of services. That’s why Oracle

Services procurement lets you define and manage important aspects of your services

contracts. For instance, with contingent labor you can include negotiated rates, terms,

job information and more. For complex services like construction where payment is

critical, you can define payment terms to include progress payment schedule, financing

advances, and financing advances. The ability to control and track these elements

Enforce Preferred Supplier Use in Every Requisition

Even the best master agreements are useless unless users consistently order services

through preferred suppliers. Oracle Services Procurement’s requisition process directs

preferred suppliers right from the initial request, funneling orders

to preferred suppliers so that services are sourced to the correct supplier at negotiated

. For services that are routinely

requisitioned by employees, you can create an approved vendor list that may contain

3 | ORACLE SERVICES PROCUREMENT

approved timecards

I N VO I C E A ND P A YMEN T

• 2 way or 3 way invoice matching

• Evaluated Receipt Settlement for self-billing

• Automatic invoice creation based on approved timecards

KE Y B EN E F I T S

With Oracle Services Procurement, you

can

• Maximize supplier savings,

• Improve compliance and increase visibility into your company’s spending for contingent labor and complex services.

As a part of Oracle’s Procure-to-Pay

solution, Oracle Services Procurement

delivers:

• Measurable savings,

• Reduced maverick spend

• Greatly simplified process for procuring and managing services of all kind.

• Requesters can easily purchase the services they need while being directed to preferred vendors and pricing

• For purchasing managers, Services

Procurement delivers powerful tools for managing catalogs, contracts and settlement.

REL AT ED P ROD U CT S

Oracle Advanced Procurement includes

additional complimentary solutions that

provide valuable integration to Services

Procurement

• Sourcing

• Procurement Contracts

• Purchasing

• iProcurement

• iSupplier Portal

• Payables

• Oracle Time and Labor

• Project Procurement Plus

one or multiple approved suppliers. When placing a request, the application displays

the latest pricing information, enabling the employee and approver

informed decision and set budget appropriately. For a unique request, you may choose

to allow the employee to suggest a new supplier.

Lower Processing Costs through Supplier Collaboration

Oracle Services Procurement lowers processing costs, reduces order turnaround and

improves service levels via online collaboration with your suppliers. Suppliers can

receive communications through a variety of mechanisms, from a web portal or

electronic messaging to fax and email. If candidate screening i

workers, suppliers and requisitioners collaborate and determine the best resource.

Through Oracle iSupplier Portal, suppliers can track all aspects of the order and can

invoice directly. As business needs change, the employee an

request changes to the order. Online tracking and change management frees

procurement professionals from the burden of routine inquiries and change requests.

Supplier performance is captured, measured, and made available to suppliers t

them improve their service to you.

Optionally, you can utilize Oracle Sourcing to collaboratively negotiate terms with

potential vendors. Once the master agreement is in place, Oracle Services

Procurement ensures that all purchase orders fully reflect the latest information to drive

compliance throughout the organization.

Eliminate Over-billing and Over-runs

Oracle Services Procurement eliminates over-billing with comprehensive invoice

matching and tracks deliverables and time online to ensure tha

services you truly receive.

Figure 3: Pay Items tab from the Order Summary

Eliminate Over-Billing

Studies suggest that the majority of all services invoices contain errors. Services

Procurement helps eliminate billing problems with multiple invoicing and reconciliation

methods, reducing costly overcharges and manual effort. Supplier invoice accuracy is

assured by matching to the original terms of payment, purchase order, and/or services

receipts. In the case of contingent workers, you can use approved, supplier

O R AC L E D AT A S H E E T

one or multiple approved suppliers. When placing a request, the application displays

the latest pricing information, enabling the employee and approvers to make an

informed decision and set budget appropriately. For a unique request, you may choose

Lower Processing Costs through Supplier Collaboration

reduces order turnaround and

improves service levels via online collaboration with your suppliers. Suppliers can

receive communications through a variety of mechanisms, from a web portal or

electronic messaging to fax and email. If candidate screening is required for contingent

workers, suppliers and requisitioners collaborate and determine the best resource.

Through Oracle iSupplier Portal, suppliers can track all aspects of the order and can

invoice directly. As business needs change, the employee and the supplier may

request changes to the order. Online tracking and change management frees

procurement professionals from the burden of routine inquiries and change requests.

Supplier performance is captured, measured, and made available to suppliers to help

Optionally, you can utilize Oracle Sourcing to collaboratively negotiate terms with

potential vendors. Once the master agreement is in place, Oracle Services

ect the latest information to drive

billing with comprehensive invoice

matching and tracks deliverables and time online to ensure that what you only for the

Studies suggest that the majority of all services invoices contain errors. Services

minate billing problems with multiple invoicing and reconciliation

methods, reducing costly overcharges and manual effort. Supplier invoice accuracy is

assured by matching to the original terms of payment, purchase order, and/or services

case of contingent workers, you can use approved, supplier-entered

4 | ORACLE SERVICES PROCUREMENT

REL AT ED S ER V I C E S

The following services are available from

Oracle Support Services:

• Oracle E-Business Suite on Oracle Cloud

• Oracle E-Business Suite Accelerators

• Oracle Application Solution Centers

• Oracle University

• Oracle Consulting

timecards, as a services receipt or to auto-generate a supplier invoice based on

approved timecards. Self-billing increases processing efficiency, reduces billing errors

and allows you to take advantage of early payment discounts. For complex services,

once an invoice is received or generated the Complex Payment Terms specified on the

contract are used to calculate the payment due to the supplier.

recoup advances and make milestone-based payments, you can mitigate risk of

overpaying your subcontractors. Previous financing payments, if any, can be recouped,

and applicable retainage can be withheld before payment is made

Ensure Services Delivery and Compliance with Tracking

For more complex contract needs, you can use Oracle Services Procurement in

conjunction with Oracle Procurement Contracts to track deliverables online, ensuring

that contract terms and conditions are fulfilled. You can assign any deli

service order to internal and external owners, who are notified when deliverables come

due. Suppliers can update the status of a deliverable online and include supporting

attachments. The buying company approves all supplier deliverables,

make payments only when all terms and conditions have been fulfilled.

Set Policies for Services Spending Approval

Oracle Services Procurement ensures that adequate spending checks are in place.

Approval rules are configurable, typically requiring approval from the employee’s

management and possibly other groups as appropriate. Services requests can be

placed against open projects and their budgets. For organizations that require that

sufficient funds be available and reserved prior to approval, Oracle Services

Procurement provides all the necessary checks. Once the request is authorized,

employees can track the spending amount against submitted invoices to see remaining

budget. When integrated with Oracle Time and Labor, contingent workers can fill out

timecards online to indicate work performed. For complex services, suppliers will report

progress either in the form of a Work Confirmation or an Invoice. The system

automatically updates the purchase order based on approved timecards, work

confirmations and invoices, providing advance warning before spending runs over

budget.

Create Visibility into Services Spending

Gain full visibility into your services spending, and a complete view of both goods and

services expenditures in from one integrated procurement solution.

Oversee the Entire Services Procurement Cycle

With Oracle Services Procurement, you can track the entire services cycle with online

access to the detailed history of each order. Employees can view the status of service

requests and drill to supporting details such as approval status, purchase orders,

timecards and invoices. Users may also initiate changes to service requests, which

generate automatic notifications to suppliers. With advance notice of changes, suppliers

can provide more responsive service and your buying organization incurs fewer

penalties or cost premiums for expedited service. With Oracle Services Procurement,

the complete history, status and cost of every service order is just a click away.

O R AC L E D AT A S H E E T

generate a supplier invoice based on

billing increases processing efficiency, reduces billing errors

take advantage of early payment discounts. For complex services,

once an invoice is received or generated the Complex Payment Terms specified on the

contract are used to calculate the payment due to the supplier. With the ability to

based payments, you can mitigate risk of

Previous financing payments, if any, can be recouped,

and applicable retainage can be withheld before payment is made

Ensure Services Delivery and Compliance with Deliverable

For more complex contract needs, you can use Oracle Services Procurement in

conjunction with Oracle Procurement Contracts to track deliverables online, ensuring

that contract terms and conditions are fulfilled. You can assign any deliverable on your

service order to internal and external owners, who are notified when deliverables come

due. Suppliers can update the status of a deliverable online and include supporting

attachments. The buying company approves all supplier deliverables, enabling you to

make payments only when all terms and conditions have been fulfilled.

Set Policies for Services Spending Approval

Oracle Services Procurement ensures that adequate spending checks are in place.

Approval rules are configurable, typically requiring approval from the employee’s

management and possibly other groups as appropriate. Services requests can be

open projects and their budgets. For organizations that require that

sufficient funds be available and reserved prior to approval, Oracle Services

Procurement provides all the necessary checks. Once the request is authorized,

nding amount against submitted invoices to see remaining

budget. When integrated with Oracle Time and Labor, contingent workers can fill out

timecards online to indicate work performed. For complex services, suppliers will report

orm of a Work Confirmation or an Invoice. The system

automatically updates the purchase order based on approved timecards, work

confirmations and invoices, providing advance warning before spending runs over

Gain full visibility into your services spending, and a complete view of both goods and

services expenditures in from one integrated procurement solution.

Oversee the Entire Services Procurement Cycle

entire services cycle with online

access to the detailed history of each order. Employees can view the status of service

requests and drill to supporting details such as approval status, purchase orders,

anges to service requests, which

generate automatic notifications to suppliers. With advance notice of changes, suppliers

can provide more responsive service and your buying organization incurs fewer

Oracle Services Procurement,

the complete history, status and cost of every service order is just a click away.

5 | ORACLE SERVICES PROCUREMENT

C O N T A C T U S

For more information about

speak to an Oracle representative.

C O N N E C T W I T H U S

blogs.oracle.com/oracle

facebook.com/oracle

twitter.com/oracle

oracle.com

Copyright © 2016contents hereof are subject to change without notice. This document is not warranted to be errorwarrantiesfitness for a particular purpose. We specifically disclaim any liability with respect to this document, and no contractual obformed either directly or means, electronic or mechanical, for any purpose, without our prior written permission. Oracle and Java are registere Intel and Intel Xeon are trademarks or registered trademarks of Intel Corporation. All SPARC trademarks are used under licensare trademarks or retrademarks or registered trademarks of Advanced Micro Devices. UNIX is a registered trademark of The Open Group.

Measure Supplier and Contingent Labor Performance

Improving supply base performance is just as vital for services as it has always been for

goods and materials. You need the proper tools, metrics and processes to monitor,

track and publish services supplier performance. With Oracle Services Procurement,

delivery of services is tracked to completion. Suppliers can monitor their on

performance for individual service requests through the portal, ensuring proper feedback

to the supplier. For contingent labor, hiring managers can enter in contractor

performance data at the end of each assignment. This information can be shared

throughout the enterprise. So other hiring managers can view prior performance

information to select the best contractors for each job.

Achieve a Complete View of Services and Goods Spending

Because Oracle Services Procurement is an integral part of Oracle Advanced

Procurement, all of your procurement can be managed and executed from within a

single integrated suite. Common entities such as vendors and employees, and common

processes such as approval flows and order change management can be leveraged for

both goods and services. This integration also gives employees a single access point

for all of their goods and services requests, which makes deployment in your

organization easier and reinforces compliance.

Oracle E-Business Suite — The Complete Solution

Oracle E-Business Suite enables companies to efficiently manage customer processes,

manufacture products, ship orders, collect payments, and more

that are built on unified information architecture. This information architecture provides a

single definition of customers, suppliers, employees, and products

business. Whether one module or the entire Suite is implemented, Oracle E

Suite enables procurement professionals to share unified information across the

enterprise and make smarter decisions with better information.

C O N T A C T U S

For more information about Oracle Services Procurement, visit oracle.com or call +1.800.ORACLE1 to

speak to an Oracle representative.

Copyright © 2016, Oracle and/or its affiliates. All rights reserved. This document is provided for information purposes only, and the contents hereof are subject to change without notice. This document is not warranted to be errorwarranties or conditions, whether expressed orally or implied in law, including implied warranties and conditions of merchantability or fitness for a particular purpose. We specifically disclaim any liability with respect to this document, and no contractual obformed either directly or indirectly by this document. This document may not be reproduced or transmitted in any form or by any means, electronic or mechanical, for any purpose, without our prior written permission.

Oracle and Java are registered trademarks of Oracle and/or its affiliates. Other names may be trademarks of their respective owners.

Intel and Intel Xeon are trademarks or registered trademarks of Intel Corporation. All SPARC trademarks are used under licensare trademarks or registered trademarks of SPARC International, Inc. AMD, Opteron, the AMD logo, and the AMD Opteron logo are trademarks or registered trademarks of Advanced Micro Devices. UNIX is a registered trademark of The Open Group.

O R AC L E D AT A S H E E T

Measure Supplier and Contingent Labor Performance

Improving supply base performance is just as vital for services as it has always been for

oods and materials. You need the proper tools, metrics and processes to monitor,

track and publish services supplier performance. With Oracle Services Procurement,

delivery of services is tracked to completion. Suppliers can monitor their on-time

mance for individual service requests through the portal, ensuring proper feedback

to the supplier. For contingent labor, hiring managers can enter in contractor

performance data at the end of each assignment. This information can be shared

e enterprise. So other hiring managers can view prior performance

Achieve a Complete View of Services and Goods Spending

Because Oracle Services Procurement is an integral part of Oracle Advanced

Procurement, all of your procurement can be managed and executed from within a

single integrated suite. Common entities such as vendors and employees, and common

processes such as approval flows and order change management can be leveraged for

and services. This integration also gives employees a single access point

for all of their goods and services requests, which makes deployment in your

The Complete Solution

Business Suite enables companies to efficiently manage customer processes,

manufacture products, ship orders, collect payments, and more—all from applications

information architecture. This information architecture provides a

ngle definition of customers, suppliers, employees, and products—all aspects of the

business. Whether one module or the entire Suite is implemented, Oracle E-Business

Suite enables procurement professionals to share unified information across the

se and make smarter decisions with better information.

, visit oracle.com or call +1.800.ORACLE1 to

, Oracle and/or its affiliates. All rights reserved. This document is provided for information purposes only, and the contents hereof are subject to change without notice. This document is not warranted to be error-free, nor subject to any other

or conditions, whether expressed orally or implied in law, including implied warranties and conditions of merchantability or fitness for a particular purpose. We specifically disclaim any liability with respect to this document, and no contractual obligations are

by this document. This document may not be reproduced or transmitted in any form or by any

d trademarks of Oracle and/or its affiliates. Other names may be trademarks of their respective owners.

Intel and Intel Xeon are trademarks or registered trademarks of Intel Corporation. All SPARC trademarks are used under license and gistered trademarks of SPARC International, Inc. AMD, Opteron, the AMD logo, and the AMD Opteron logo are

trademarks or registered trademarks of Advanced Micro Devices. UNIX is a registered trademark of The Open Group. 0116