Recorded at Kscope 21 Hosted by: Andrew Laferla (Alithay) and William Harned (MUFG Union Bank)

1. Visit our virtual booth daily from 1:40 – 2:20 PM
Complete the
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2. Why and How to Implement Operational
Transfer Pricing (OTP) with Oracle EPM
Andrew Laferla
Product Manager – Profitability & Costing
Solutions
William Harned
AVP Financial Reporting & Accounting Professional
MUFG Union Bank, N.A.
MUFG Union Bank, N.A. is a federal and state chartered financial institution and it, and its affiliates, do not provide tax, legal, or accounting advice. This
material has been prepared for informational purposes only, and is not intended to provide, and should not be relied upon for, tax, legal or accounting
advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

3. About the Presenter
Andrew Laferla
> Alithya Product Manager – Profitability and Cost Management
> Over 10 years of Enterprise Performance Management (EPM)
experience focusing on Profitability and Cost Management
> Profitability and Cost Management and Essbase Certified
> Hobbies: Any outdoor activity, sports (baseball, cricket and
esports), travel with family and cooking
h_pcm in/andrewlaferla
William Harned
> MUFG Union Bank, N.A. - AVP Financial Reporting & Accounting
Professional
> 15 years of experience in Financial Operations, Structured
Finance, Corporate Treasury, and Transfer Pricing Operations
> Hobbies: Golf, snow skiing, running, and spending time with
family
in/williamharned

4. About Alithya
2400
employees
3000+
projects
400+ ERP/EPM
Cloud projects
23+
years
NASDAQ
ALYA
225+ Oracle
consultants
6 Oracle
ACEs
1000+
clients
Enterprise Applications Application Services Business Strategy Data & Analytics
Enterprise Resource Planning (ERP/SCM)
Human Capital Management (HCM)
Enterprise Performance Management (EPM)
Customer Relationship Management (CRM/CXM)
Cloud Infrastructure Migration
Cloud Enterprise Services
Digital Applications Development
Legacy Systems Modernization
Quality Assurance
Strategic Consulting
Digital Transformation
Enterprise Architecture
Organizational Performance
Business Intelligence
Data Governance
Modern Data Architecture
Artificial Intelligence
Machine Learning

5. About MUFG
Cost & Risk Control
Platform Transformation
Business Portfolios
Global Markets
Oracle-Based Applications Application Services Business Strategy Data & Analytics
Oracle Financial Services (JSE)
Oracle Financials (SAAS Cloud)
Oracle OBIEE – Branch Credit Risk Reporting (CRR)
Oracle EMP Cloud – Profitability & Cost Management
(PCMCS)
Credit Risk Reporting
Accounts Payable
Fixed Assets
Cost Allocations
Operational Transfer Pricing
Corporate Transformation
Growth Strategy
Structural Reforms
180,000
Employees
Worldwide
$3.4T
Assets
351
Branches
360+
Year
History
NASDAQ
MUFG
Top 5
Largest Banks
Worldwide
Multiple
Oracle Cloud
Applications
50
Countries
Copyright ©2021, MUFG Union Bank, N.A.. All Rights Reserved, Confidential and Not for Further Distribution

6. Agenda
1.
What Is Operational
Transfer Pricing?
Introduction to
Operational Transfer
Pricing (OTP), why it is
important to
Organizations and key
challenges
2.
Implementing OTPin the
Cloud
How OTP Solutions can
be implemented using
Oracle Cloud EPM
4.
Closing Q&A
Closing Questions and
Answers
3.
MUFG, Oracle CloudEPM
andOTP
How Oracle Cloud EPM
was leveraged to create
an accurate and scalable
OTP solution at MUFG

7. • Operational transfer pricing (OTP) is the accounting method used to price a product or service sold between
related entities
• Establishes a price to charge between related entities
• In many situations, there are multi-jurisdiction tax requirements
• The products and services may drive revenue or expense between entities and tax jurisdictions
• Multiple Arm’s Length Methodologies:
• Market rate
• Adjusted market rate
• Negotiated
• Contributed
• Cost plus markup
• Cost based
• Added scrutiny from the Organisation of Economic Co-operation and Development (OECD) due to Business
Erosion Profit Sharing (BEPS) recommendations
What Is Operational Transfer Pricing?
7

8. What Is Operational Transfer Pricing?
Why Does Operational Transfer Pricing (OTP) Matter?
• Multi-national companies buy and sell products and services
between related companies within a complex
organizational structure
• These transactions drive revenue and expense between
entities and various tax jurisdictions, thus creating
significant tax implications
• OTP is the accounting method used to price a product or
service sold between related entities
• Companies face scrutiny from tax authorities and auditors in
the pricing of intercompany sales and tax strategies
• Tax legislation has changed and will continue to change
• Companies need technology to interpret change in tax
legislation, interpret change in pricing, and monitor auditor
risk.
• Impacts Budgeting and Finance requirements for impacted
entities
8

9. What Is Operational Transfer Pricing?
Operational Transfer Pricing Key Challenges
The OTP process needs to
be a repeatable process with
the ability to drill into results
to rationalize the output of
the model.
Accuracy
Companies need insight into the
impact of OTP and to monitor
potential OTP risks.
Visibility &
Transparency
Technology solutions needs
to be scalable and adaptable
to organizational and OTP
methodology change.
Flexibility
Close calendars are
shortening, requiring an
integrated, efficient
approach to OTP.
Efficiency

10. What Is Operational Transfer pricing?
Where is OTP Typically Performed?
Manual
• Error prone
• Lacks transparency
• Time consuming to
maintain and run process
• Lacks controls &
governance
• Lacks reporting
• Extends close cycle
ERP
• Requires manual tasks
• Lacks all necessary data
integrations
• Lacks reporting & KPIs
• Financial close is slower,
bloated, and more costly
• Difficult to adapt as
processes and supporting
systems change
Custom Built
• “Black-box” that is
difficult to maintain
• Slow to adapt for new
pricing methodologies,
data integrations, etc.
• Grows unwieldy over
time
• May become unsupported
• Key personnel
dependency
10

11. Implementing OTP in the Cloud
Oracle Cloud EPM
Connected Planning
> Dynamic Planning
> Strategic Modeling and LRP
> Operational LOB Planning
> Zero Based Budgeting
> Driver Based Planning
> Rolling Forecast
> Adaptive Intelligent
Planning
Comprehensive Financial Close
> Financial Consolidation
> Close Process Orchestration
> Reconciliations &
Compliance
> Tax Provision & Reporting
> Intelligent Process
Automation
> Transfer Pricing
Analytics & Reporting
> Management Reporting
> External Reporting
> Performance Reporting
> Narrative Reporting &
Disclosures
> Profitability & Costing
Enterprise Data
> Metadata Governance
> Cloud Connectivity and
Adapters
> Traditional On-Premise
Connectivity & Adapters
> Modern Data Architecture
> Lights out Automation
> Extensive ETL Capabilities
> Integration to On-Premise
Source
EPBCS
FCCS
ARCS
TRCS
PCMCS
EPRCS
PCMCS
EDMCS
CDM
EPM
Integration
Agent
11

12. Publish Results
& Invoice
• Published Reports
• Extract to ERP
Analyze Results &
Variances
• Ad Hoc Analysis
• What If Scenarios
Execute
Calculations &
Allocations
• Product Routing
Calculations
• Service Allocations
with Markup &
Residual
Implementing OTP in the Cloud
Operational Transfer Pricing Process
Review &
Adjust Assumptions
• Manual Assumptions
• Benchmarks
• External Data
Adjustments
• Review Existing
Results
• Hierarchies
• F/X Rates
• Drivers
• Trial Balance
• Transfer Prices
• Routing Info
Source External
Data
12

13. Implementing OTP in the Cloud
Oracle Cloud EPM Framework for OTP
Metadata Management – EDMCS/DRM
ERP
Data
Warehouse
Other source
data
Source Systems Reporting and BI Engine
Smart View Reporting
Cloud Analytics
Financial reporting
FDMEE
or
DM
Integration
Engine
Oracle Cloud EPM
Workflow/Task Flows
Data Entry
Roles and security
Calculation and Allocation Engine
EPBCS
PCMCS
Shared Service Cost Allocations
OTP Calculations
Mark-Up Calculations
Journal Preparation
13

14. MUFG, Oracle Cloud EPM and OTP
• Data Input:​
• The Transfer Pricing team is responsible for all collection and entry of all pre-allocated data, this process was time consuming and error prone
• Multiple data sources, including system sources (such as the Oracle EBS and PeopleSoft GL) and data supplied by business units not familiar
with OTP
• Noticeable gap between the operational and fiscal dates pre-allocated data required is available
• Allocation/Calculation:​
• Not all Transfer Pricing calculations are preformed in the legacy application. External calculations exist and could not be brought into the
application
• No/Limited what-if modelling capabilities
• Due to the availability of pre-allocated data, the application is executed multiple times and multiple GL entries are made into the Oracle EBS
and PeopleSoft general ledgers
• Data Output and Reporting:​
• Preparation of the post allocated and calculated costs is not optimized and required manual intervention at multiple points in the process
• Various standards existed for Invoicing purposes with different formats required across the 20+ Invoices
• Report preparation involved various manual process which are tedious in nature
• The journal entry process was painful. Two separate files are produced for Oracle EBS and Peoplesoft General Ledgers. Each of these files
required formatting and the relevant mapping to occur
Legacy Pain Points
14
Copyright ©2021, MUFG Union Bank, N.A.. All Rights Reserved, Confidential and Not for Further Distribution

15. MUFG, Oracle Cloud EPM and OTP
Timeline Slide
15
• Project Kick Off
• Functional Design Document
• Technical Design Document
Design
2019
• Application Development
• Conference Room Pilots (CRP)
• SIT & UAT
• Go-Live
Build, Test andGo-Live
2020
• Parallel Run
• Previous OTP Application
Retirement
Parallel Run
2021
Copyright ©2021, MUFG Union Bank, N.A.. All Rights Reserved, Confidential and Not for Further Distribution

16. MUFG, Oracle Cloud EPM and OTP
Project Objectives
Provide automated, self-service processing and analysis for pricing
of services and allocations between affiliate service providers;
aligning with industry standards.
Accept and apply user defined business rules and hierarchies. In
addition, automated controls/validation points will ensure regulatory
and (Enterprise) policy compliance.
Provide a sustainable mechanism that can respond to shifting
pricing catalogues; perform calculations, generate customizable and
dynamic invoicing, and provide transactional detail with billing
statements.
Enhanced reporting to business units for financial analysis, financial
committees for quarterly reporting, and regulatory bodies.
Enhance Risk management tools and information for throughout
visibility and facilitation of risk mitigation and response.
16
Copyright ©2021, MUFG Union Bank, N.A.. All Rights Reserved, Confidential and Not for Further Distribution

17. MUFG, Oracle Cloud EPM and OTP
• Financial Data Management Enterprise Edition
(FDMEE):
• Multiple sources of pre-allocated financials from
different Ledgers (PeopleSoft vs Oracle EBS)
• International Data Entry Requirements
• Audit and data security
• Visibility into if, when and who loaded data
Managing Data Input
Review &
Adjust Assumptions
• Data Relationship Management (DRM):
• Centralized hierarchy maintenance
• Handle complex mapping requirements
• Oracle EBS to PeopleSoft Maps
• Sender Entity to Receiver Entity Maps
• Sender Entity to AllocationPool Maps
• Attribute Management and deployment
• Audit abilities into if, when and who updated
metadata
17
Copyright ©2021, MUFG Union Bank, N.A.. All Rights Reserved, Confidential and Not for Further Distribution

18. MUFG, Oracle Cloud EPM and OTP
Tracking Data Input
Financial Data Management Enterprise Edition (FDMEE):
1. Multiple sources of pre-allocated financials from different Ledgers (PeopleSoft vs Oracle EBS)
2. International Data Entry Requirements
3. Audit and data security
4. Visibility into if, when and who loaded data
Review &
Adjust Assumptions
18
Copyright ©2021, MUFG Union Bank, N.A.. All Rights Reserved, Confidential and Not for Further Distribution

19. MUFG, Oracle Cloud EPM and OTP
Creating Flexibility and Scalability
Data Relationship Management (DRM):
1. Centralized hierarchy
maintenance
2. Handle complex mapping
requirements
3. Oracle EBS to PeopleSoft Maps
4. Sender Entity to Receiver Entity
Maps
5. Sender Entity to AllocationPool
Maps
6. Attribute Management and
deployment
7. Audit abilities into if, when and
who updated metadata
Review &
Adjust Assumptions
19
Copyright ©2021, MUFG Union Bank, N.A.. All Rights Reserved, Confidential and Not for Further Distribution

20. Sender Entity Account Allocation Pool Catalog Receiver Entity
MUFG, Oracle Cloud EPM and OTP
Defining OTP Calculations and Allocations
Analyze Results &
Variances
Execute
Calculations &
Allocations
Source Financial Data
Sending Entity Account Allocation Pool
Shared Services
Allocations
Sending Entity Account Allocation Pool
Revenue
Intra-Allocation Pool
Allocations
Sending Entity Account Allocation Pool
Percentage Override
Catalog Allocations
Sending Entity Catalog
Account Allocation Pool
Catalog Map
Receiving Entity
Allocations/Calculations
Sending Entity Receiving Entity
Catalog
Account Allocation Pool
Arms Length Pricing Methodology
Mark-Up
Sending Entity Receiving Entity
Catalog
Account Allocation Pool
Mark-Up Percentage
Journal
Preparation
Sending Entity Receiving Entity
Catalog
Account Allocation Pool
Transfer Pricing Account Mapping
Input data/Pre-allocated Data that does not change from one
allocation step to the next
Data that changes from one allocation
step to the next
Mapped input data
20
Copyright ©2021, MUFG Union Bank, N.A.. All Rights Reserved, Confidential and Not for Further Distribution

21. MUFG, Oracle Cloud EPM and OTP
Delivered Reporting
• DRM Reports
• Provide audit trail of who, when and how key hierarchies and member properties were changed prior to loading to PCMCS.
• Allows for the business to anticipate key changes required to the OTP process prior to running the application.
• FDMEE Reports
• Provide visibility into who, when and how data was loaded into PCMCS
• Provides drill through capabilities to analyze inputs at a more granular level
• PCM System (Built In) Reports
• Assist in tracing pre and post charge amounts within the application
• Provide Program Documentation for auditing and other purposes
• Provide insight into problem areas (technical and functional)
• Financial Reports
• Used to generate formatted reports.
• Can be printed into PDF and distributed to a wider audience.
• Generation of Quarterly Affiliates Report that shows the detailed charge break down at various levels.
• SmartView Reporting
• Report that can be utilized to uncover the underlying data movements in the application
• Utilized heavy by the Business End Users to analyze charges prior to creating invoices and external dissemination
• Generate Invoices from PCMCS and add supplemental detail required by the Business
Publish Results
& Invoice
21
Copyright ©2021, MUFG Union Bank, N.A.. All Rights Reserved, Confidential and Not for Further Distribution

22. MUFG, Oracle Cloud EPM and OTP
Producing Invoices – Choosing the Correct Tool
Requirement
Ability to Create Template Invoices
Dispute Resolution Process
Inclusion of External Information Sources
Inclusion of Billing Charge and Key KPI Availability
Ease of Use
Invoice Template Flexibility
Allows for Commentary
SmartView
DedicatedBilling
Solution
O
Financial Reports
Publish Results
& Invoice
22
Copyright ©2021, MUFG Union Bank, N.A.. All Rights Reserved, Confidential and Not for Further Distribution

23. MUFG, Oracle Cloud EPM and OTP
• SmartView was leveraged as the toolset to produce Invoices
for the following reasons:
• Inclusion of commentary and other external data
• Ease of Use
• Flexibility in formatting
• Minimal Training Required
• Business Ownership
Producing Invoices – Invoice Template
Data, Commentary and Notes not
available in PCMCS
SmartView Retrieve from PCMCS
Publish Results
& Invoice
23
Copyright ©2021, MUFG Union Bank, N.A.. All Rights Reserved, Confidential and Not for Further Distribution

24. MUFG, Oracle Cloud EPM and OTP
Key Challenges:
• Various calculations must be preformed in PCMCS in preparation for the Journal
process. These calculations are done to simplify the mapping to external
applications
• Ability to accommodate dual Journal specifications
• Ability to create dual ledger entries (Expense and Revenue movements within a
single ledger) and one-sided ledger entries(Expense/Revenue on one ledger and
the corresponding Revenue/Expense on the other ledger)
• Creation of the Balance Sheet entries in the Ledgers
• The integration tool must be able to map the appropriate Receivable and
Payable Accounts based on the PCMCS Account, DataType and Balance member
• Force Rounding of the PCMCS Output
Producing Journals for Multiple ERPs
PCMCS
Journal Preparation Rules to
Populate the Accounting View
FDMEE
Advanced Mappings to
Accommodate Oracle EBS and
People Soft Requirements
Review
Journal Preparation Rules
Create Journals
Load Journals
Publish Results
& Invoice
24
Copyright ©2021, MUFG Union Bank, N.A.. All Rights Reserved, Confidential and Not for Further Distribution

25. MUFG, Oracle Cloud EPM and OTP
Producing Journals for Multiple ERPs - Example
• From PCMCS, a Charge from the Bank Head Office (BNK_002) is generated for two separate Receiver Entities (LON_BRCH & MEX_BRCH). The Bank Head-Office and the
Branches sit on two separate General Ledgers, PeopleSoft and Oracle EBS, respectively
• As such the Revenue generated from the Charge must be booked in PeopleSoft and the Expense for the Charge booked in Oracle EBS
Year Period Scenario Currency Version Sender Entity Account AllocationPool Receiver Entity DataType Resource Rule Balance Amount
YR2020 Dec Actuals USD Final SE_37500 ACCT_463212 A-115-e2 RE_31532 DT_JournalPrep_Revenue Total Resource Calculation Rules Allocation Out -177.04
YR2020 Dec Actuals USD Final SE_10800 ACCT_463233 A-120-a1 RE_31533 DT_JournalPrep_Revenue Total Resource Calculation Rules Allocation Out -1991.55
YR2020 Dec Actuals USD Final SE_37500 ACCT_903212 A-115-e2 RE_31532 DT_JournalPrep_Expense_Base Total Resource Calculation Rules Allocation In 166.4176
YR2020 Dec Actuals USD Final SE_37500 ACCT_493212 A-115-e2 RE_31532 DT_JournalPrep_Expense_MarkUp Total Resource Calculation Rules Allocation In 10.6224
YR2020 Dec Actuals USD Final SE_10800 ACCT_903233 A-120-a1 RE_31533 DT_JournalPrep_Expense_Base Total Resource Calculation Rules Allocation In 1872.057
YR2020 Dec Actuals USD Final SE_10800 ACCT_493233 A-120-a1 RE_31533 DT_JournalPrep_Expense_MarkUp Total Resource Calculation Rules Allocation In 119.493
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GL_EFFECTIVE_DATE currency_code COST CENTER GL CODE LOCAL CODE ENTITY EXPENSE CODE INTERCOMPANY FUTURE USE Debit Credit Line Description Operator GL_Operator Originating System
4/2/2020 USD 37500 903212 771230 BNK_002 0 BR_001 0 177.04 ACT_2019_12_A-115-e2_Revenue TPR_ADMIN n303452 TPR
4/2/2020 USD 37500 193212 781230 BNK_002 0 BR_001 0 177.04 ACT_2019_12_A-115-e2_Receivable TPR_ADMIN n303452 TPR
Populate the Originating System GL Field with the appropriate value
Oracle GL Journal File
If Account is a Receivable Account then map the GL Intercompany Field from the PCMCS Receiver Entity.
If Account is a Payable Account then map the GL Intercompany Field from the PCMCS Sender Entity.
If the DataType is "DT_JournalPrep_AllocIn" then map the Sender Entity to the Intercompany GL Field
If the DataType is "DT_JournalPrep_AllocOut" then map the Receiver Entity to the Intercompany GL Field
Map "0" to the Expense Code and Future Use Fields in the GL.
If the PCMCS Balance is "Allocation Out" map the value to the Credit GL Field.
If the PCMCS Balance is "Allocation In" map the value to the Debit GL Field.
Populate the Line Description GL Field by concatenating the first three characters of the PCMCS Scenario with the PCMCS Year, PCMCS Period, PCMCS Allocation Pool and PCMCS DataType.
Populate the Operator GL Field with the appropriate GL Operator
Populate the Operator GL Field with the appropriate GL Operator User
For Accounts Payable and Accounts Receivable, map to the correct Debit/Credit GL Fields based on the corresponding PCMCS Expense Accounts, DataType and Balance.
PCMCS Output
Transformation Requirements
Mapping of the PCMCS Year, Period and Scenario members into the Effective Date GL Field
Map PCMCS Currency to Currency_code GL Field
If the DataType is "DT_JournalPrep_Revenue" then map the Sender Entity to the Cost Center GL Field
If the DataType is "DT_JournalPrep_Expense" then map the Receiver Entity to the Cost Center GL Field
Map Expense and Revenue Accounts
Remove Account Prefix
If the DataType is "DT_JournalPrep_AllocOut" create a Account Payable Row entry map the applicable Payable Account.
If the DataType is "DT_JournalPrep_AllocIn" create a Account Receivable Row entry map the applicable Payable Account.
Map the Local Code GL Field from the Account Field
If the DataType is "DT_JournalPrep_Expense" then map the Receiver Entity to the Entity GL Field.
If the DataType is "DT_JournalPrep_Revenue" then map the Sender Entity to the Entity GL Field
Journal
Preparation
Steps
Year Period Scenario Currency Version Sender Entity Account AllocationPool Receiver Entity DataType Resource Rule Balance Amount
YR2020 Dec Actuals USD Final SE_37500 ACCT_463212 A-115-e2 RE_31532 DT_JournalPrep_Revenue Total Resource Calculation Rules Allocation Out -177.04
YR2020 Dec Actuals USD Final SE_10800 ACCT_463233 A-120-a1 RE_31533 DT_JournalPrep_Revenue Total Resource Calculation Rules Allocation Out -1991.55
YR2020 Dec Actuals USD Final SE_37500 ACCT_903212 A-115-e2 RE_31532 DT_JournalPrep_Expense_Base Total Resource Calculation Rules Allocation In 166.4176
YR2020 Dec Actuals USD Final SE_37500 ACCT_493212 A-115-e2 RE_31532 DT_JournalPrep_Expense_MarkUp Total Resource Calculation Rules Allocation In 10.6224
YR2020 Dec Actuals USD Final SE_10800 ACCT_903233 A-120-a1 RE_31533 DT_JournalPrep_Expense_Base Total Resource Calculation Rules Allocation In 1872.057
YR2020 Dec Actuals USD Final SE_10800 ACCT_493233 A-120-a1 RE_31533 DT_JournalPrep_Expense_MarkUp Total Resource Calculation Rules Allocation In 119.493
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GL_EFFECTIVE_DATE currency_code COST CENTER GL CODE LOCAL CODE ENTITY EXPENSE CODE INTERCOMPANY FUTURE USE Debit Credit Line Description Operator GL_Operator Originating System
4/2/2020 USD 37500 903212 771230 BNK_002 0 BR_001 0 177.04 ACT_2019_12_A-115-e2_Revenue TPR_ADMIN n303452 TPR
4/2/2020 USD 37500 193212 781230 BNK_002 0 BR_001 0 177.04 ACT_2019_12_A-115-e2_Receivable TPR_ADMIN n303452 TPR
4/2/2020 USD 10800 903233 771230 BNK_002 0 BR_003 0 1991.55 ACT_2019_12_A-120-a1_Revenue TPR_ADMIN n303452 TPR
4/2/2020 USD 10800 194412 781230 BNK_002 0 BR_003 0 1991.55 ACT_2019_12_A-120-a1_Receivable TPR_ADMIN n303452 TPR
Populate the Originating System GL Field with the appropriate value
Oracle GL Journal File
If Account is a Receivable Account then map the GL Intercompany Field from the PCMCS Receiver Entity.
If Account is a Payable Account then map the GL Intercompany Field from the PCMCS Sender Entity.
If the DataType is "DT_JournalPrep_AllocIn" then map the Sender Entity to the Intercompany GL Field
If the DataType is "DT_JournalPrep_AllocOut" then map the Receiver Entity to the Intercompany GL Field
Map "0" to the Expense Code and Future Use Fields in the GL.
If the PCMCS Balance is "Allocation Out" map the value to the Credit GL Field.
If the PCMCS Balance is "Allocation In" map the value to the Debit GL Field.
Populate the Line Description GL Field by concatenating the first three characters of the PCMCS Scenario with the PCMCS Year, PCMCS Period, PCMCS Allocation Pool and PCMCS DataType.
Populate the Operator GL Field with the appropriate GL Operator
Populate the Operator GL Field with the appropriate GL Operator User
For Accounts Payable and Accounts Receivable, map to the correct Debit/Credit GL Fields based on the corresponding PCMCS Expense Accounts, DataType and Balance.
PCMCS Output
Transformation Requirements
Mapping of the PCMCS Year, Period and Scenario members into the Effective Date GL Field
Map PCMCS Currency to Currency_code GL Field
If the DataType is "DT_JournalPrep_Revenue" then map the Sender Entity to the Cost Center GL Field
If the DataType is "DT_JournalPrep_Expense" then map the Receiver Entity to the Cost Center GL Field
Map Expense and Revenue Accounts
Remove Account Prefix
If the DataType is "DT_JournalPrep_AllocOut" create a Account Payable Row entry map the applicable Payable Account.
If the DataType is "DT_JournalPrep_AllocIn" create a Account Receivable Row entry map the applicable Payable Account.
Map the Local Code GL Field from the Account Field
If the DataType is "DT_JournalPrep_Expense" then map the Receiver Entity to the Entity GL Field.
If the DataType is "DT_JournalPrep_Revenue" then map the Sender Entity to the Entity GL Field
Journal
Preparation
Steps
Year Period Scenario Currency Version Sender Entity Account AllocationPool Receiver Entity DataType Resource Rule Balance Amount
YR2020 Dec Actuals USD Final SE_37500 ACCT_463212 A-115-e2 RE_31532 DT_JournalPrep_Revenue Total Resource Calculation Rules Allocation Out -177.04
YR2020 Dec Actuals USD Final SE_10800 ACCT_463233 A-120-a1 RE_31533 DT_JournalPrep_Revenue Total Resource Calculation Rules Allocation Out -1991.55
YR2020 Dec Actuals USD Final SE_37500 ACCT_903212 A-115-e2 RE_31532 DT_JournalPrep_Expense_Base Total Resource Calculation Rules Allocation In 166.4176
YR2020 Dec Actuals USD Final SE_37500 ACCT_493212 A-115-e2 RE_31532 DT_JournalPrep_Expense_MarkUp Total Resource Calculation Rules Allocation In 10.6224
YR2020 Dec Actuals USD Final SE_10800 ACCT_903233 A-120-a1 RE_31533 DT_JournalPrep_Expense_Base Total Resource Calculation Rules Allocation In 1872.057
YR2020 Dec Actuals USD Final SE_10800 ACCT_493233 A-120-a1 RE_31533 DT_JournalPrep_Expense_MarkUp Total Resource Calculation Rules Allocation In 119.493
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Originating System Begin Date End Date Period Journal ID Legal Entity Department Account Entity Affiliate currency_code Amount Line Description
TPR 03312020 04302020 4 1 BRCH 28222 75001 LON_BRCH BNK_002 USD 166.4176 ACT_2019_12_A-115-e2_Expense_Base
TPR 03312020 04302020 4 2 BRCH 28222 75009 LON_BRCH BNK_002 USD 10.6224 ACT_2019_12_A-115-e2_Expense_MarkUp
TPR 03312020 04302020 4 3 BRCH 28222 990012 LON_BRCH BNK_002 USD -177.04 ACT_2019_12_A-115-e2_Payable
TPR 03312020 04302020 4 4 BRCH 28223 903233 MEX_BRCH BNK_002 USD 1872.057 ACT_2019_12_A-120-a1_Expense
TPR 03312020 04302020 4 5 BRCH 28223 903239 MEX_BRCH BNK_002 USD 119.493 ACT_2019_12_A-120-a1_Expense_MarkUp
TPR 03312020 04302020 4 6 BRCH 28223 994412 MEX_BRCH BNK_002 USD -1991.55 ACT_2019_12_A-120-a1_Payable
PeopleSoft GL Journal File
Swap sign and populate the Amount Column with the Values as extracted from PCMCS.
PCMCS Output
Transformation Requirements
Mapping of the PCMCS Year and Period into the Begin Date, End Date and Period.
Map PCMCS Currency to Currency_code GL Field
If the DataType is "DT_JournalPrep_Expense" then map the PCMCS Receiver Entity to the mirror PeopleSoft Department Field.
If the DataType is "DT_JournalPrep_Revenue" then map the PCMCS Source Entity to the mirror PeopleSoft Department Field.
If the DataType is "DT_JournalPrep_Revenue" then map the PCMCS Source Entity to the PeopleSoft Entity Field.
If the DataType is "DT_JournalPrep_Expense" then map the PCMCS Receiver Entity to the PeopleSoft Entity Field.
Remove Department Prefix
If Account is a Receivable Account then map the GL Affiliate Field from the PCMCS Receiver Entity.
If Account is a Payable Account then map the GL Affiliate Field from the PCMCS Sender Entity.
If the DataType is "DT_JournalPrep_AllocIn" then map the Sender Entity to the Affiliate GL Field
If the DataType is "DT_JournalPrep_AllocOut" then map the Receiver Entity to the Affiliate GL Field
Populate the Originating System GL Field with the appropriate value
Create Journal ID
If the DataType is "DT_JournalPrep_Expense" then map the GL Legal Entity to the Receiver Entity's Legal Entity.
If the DataType is "DT_JournalPrep_Expense" then map the GL Legal Entity to the Sender Entity's Legal Entity.
Populate the Line Description GL Field by concatenating the first three characters of the PCMCS Scenario with the PCMCS Year, PCMCS Period, PCMCS Allocation Pool and PCMCS DataType.
If Accounts is Expense Account, map to corresponding PeopleSoft Mirror Expense Account
If Accounts is Revenue Base Account, map to corresponding PeopleSoft Mirror Revenue Base Account
If Accounts is Revenue Mark-Up Account, map to corresponding PeopleSoft Mirror Revenue Mark-Up Account
If the DataType is "DT_JournalPrep_Expense" create a Account Payable Row entry map the applicable PeopleSoft Mirror Payable Account.
If the DataType is "DT_JournalPrep_Revenue" create a Account Receivable Row entry map the applicable PeopleSoft Mirror Payable Account.
Journal
Preparation
Steps
> The Expense and corresponding Account Payable Journal is created and sent to Oracle EBS.
> The Revenue and corresponding Account Receivable Journal is created and sent to PeopleSoft.
Publish Results
& Invoice
25

26. Closing
OTP Enhancements Post-Implementation
Flexibility
Upload templates allow for
non-system generated output
to be included in transfer price
invoicing and reporting
Automation
Automated upload of pre-
allocated ledger data through
FDMEE
Visibility and
Traceability
Output by hierarchy,
allocation approach, transfer
pricing method, and Arm’s
Length Transfer Pricing
Methodology
Output can be analyzed at
multiple dimensions
(Business Unit, Cost Center,
Service Recipient, etc.)
Customizable invoicing and
reporting through SmartView
Customizable
and Scalable
Ability to accommodate
multiple methodologies to
multiple affiliates using the
same cost pool
26
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27. Closing
Key Take Away
Oracle EPM
Oracle EPM provides clients with unparallel ability to
implement their OTP solution in a way that matches
their, and regulators, expectations and requirements
Holistic Approach
A holistic approach is key to success, focusing on one
part of the process does not ensure long-term
success
Traceability,
Visibility and
Accountability
OTP applications must provide the traceability into
the source of charges, allow for visibility on how
charges where calculated and ensure accountability
Flexibility
Flexibility is important. Tax laws and organization
change constantly, it’s important an OTP application
can accommodate these changes in an efficient
manner
27

28. 28

29. > Vendor Presentation: Leading Practices in Multi-Pillar Oracle Cloud
Implementations
> How Do I Love Cash Flow? Let Me Count the Ways…(11427)
> What Did I Miss? Addressing Non-Traditional Reconciliations in AR
and Data Integration Design (11513)
> Workforce Plus: Tips and Tricks to Give Workforce an Extra Kick!
(11415)
> Why and How to Implement Operation Transfer Pricing (OTP) with
Oracle EPM Cloud (111111)
> Integrated Business Processes: A Better Way to Align FP&A Forecast
and Management Reporting (11385)
> Viasat Launches to the Cloud with Oracle Enterprise Data
Management (11486)
> ❤️ Matchmaker, Make Me a Match: Can AR Intercompany
Matchmaking Tools Be a Perfect Match for You? (11174)
> How WillScot-Mobile Mini Utilized Enterprise Data Management for
Business Transformation (11489)
> See Why This Government Contractor Loves PCM: Live Session with
General Dynamics (11395)
> How to Allocate Your Close Time More Effectively (11533)
> How to Deploy & Integrate Oracle EPM Cloud Profitability and Cost
Management (PCM) as an Allocations Sub-Ledger (11109)
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