Background

A global transportation services company operates a fleet of more than 21,500 buses serving nearly 600 school districts across the US.

The company needed to transition a major portion of their business to an Accounts Receivables (AR) Dispute approval hierarchy process using the capabilities within Oracle AME (Approval Management Engine).

About Oracle AME

Oracle Approvals Management is a highly extensible approvals rule engine which allows organizations to simply and effectively define business rules that determine who must approve a transaction originating within an Oracle Application. Oracle Approvals Management is part of the Oracle E-Business Suite, an integrated set of applications that are engineered to work together.

Based on the selected business model, ennVee was asked to provide a comprehensive AME-based solution that integrates with the company's existing Oracle E-Business Suite ERP system.

Solution Approach

• Implement Oracle AME (Credit Memo Approval Process) based on Job hierarchy and approval limits within the client's application architecture framework. This would enable the company to manage customer disputes more effectively.

• The AME-Oracle EBS integration utilizes a single set of master product data between both applications, automatically generates approvals, and sends notifications to the appropriate individual.

• Design a seamless and comprehensive solution for the receivable dispute process — from generating custom approvals, to allowing the client's customers to easily submit disputed invoices, and generating approved credit memo invoices through a customized workflow.

Solution Components:

• Oracle E-Business Suite (EBS) R12.1.3
• Oracle Approvals Management Engine (AME)
• Workflow

Solution Process

1. Set up AME approval process by creating approval hierarchy, approval groups and rules
2. Enable AME setup by using Profiles (AME: Installed, AR: Use Oracle Approvals Management in Credit Memo Workflow)
3. Include the Custom Approval Process in Credit Memo Workflow
4. Enable Oracle AME in the Receivable Process in Oracle EBS

Steps in Oracle E-Business Suite

• Setups needed to access the Collection Form
• Set profile option as YES for the profile below:
  • Profile option name1 -- AME:installed
  • Profile option name2 -- AR: Use Oracle Approvals Management in Credit Memo Workflow

Outcome and Business Benefits

ennVee's comprehensive solution ensured a quantum jump in the effectiveness and efficiency of the client’s credit memo invoice approval process. The entire dispute process duration saw reductions from 3-7 days to less than an hour. This was accomplished by:

• Streamlining multiple hand-offs for approval with automated workflow
• Eliminating redundant data
• Minimizing manual and time-intensive proposal generation
• Maintaining consistent credit memo invoice approval
• Sending automated approval notifications with credit memo information to superiors