OLFM Training

DAY 1
Day1

OLFM History
Business Flows
Overview of Contract
Integration with Other Modules
Special Features of OLFM
Concept of Products, Transaction types, Stream Types
Contract Pricing
Trainer Introduction

KANTI JINGER
22 Years of Experience in Oracle Technologies
Independent Techno-Functional Consultant
14 years association with OLFM Product Development and Implementations
Worked with the following OLFM implementations:
GE Capital
Beckman Coulter
Navistar Financials
Ricoh Europe
SunRun
DLL
OLFM History

Developed Based on Contract Family of Products

Uses OKC Foundation
Requirements from GE Capital
Name Evolution -> OKL, OLM, OLFM
First Release in 11.5.8 in 2002
Latest Release R12.2.5
OA Framework HTML and Forms
OLFM History

Solution for Equipment Leasing Industry

Part of Ebiz Suite Integrated with Other modules
First Implemented in GE Capital
Many Customers Since Then
OLFM Customers
OLFM Geographical Reach

OLFM has been implemented in the following countries:

US & Canada
LAD Argentina, Chile, Columbia, Mexico, Panama, Peru
APAC Australia, China, India, Japan, New Zealand, Thailand
EMEA Austria, Belgium, Czech Republic, Croatia, Denmark, Finland,
France, Germany, Hungary, Ireland, Italy, Kazakhstan, Netherlands,
Norway, Poland, Saudi Arabia, Slovakia, South Africa, Spain,
Switzerland, Sweden, U.A.E., U.K.
OLFM Flows
OLFM Flows
OLFM Flows
OLFM Flows
Asset Return to Disposal
OLFM Flows
OLFM Integrations
OLFM Fully Integrated with
General Ledger
SLA
Receivables
Payables
Fixed Assets
Service Contracts
Inventory
Order Management
Core Contracts
CRM Foundation
Installed Base
Advanced Collections
OLFM Integrations

Mandatory Modules
Receivables
Payables
Fixed Assets
General ledger

Inventory (Partial)
Installed Base (Partial)
CRM Foundation (Partial)
Order Management (Partial)
Service Contracts (Partial)
Overview of Contract

Minimum 2 Parties (Lessor and Lessee)

Terms and Conditions
Assets
Payment Definition
Fees and other Charges
QA Checks
Amortization Schedules and Stream Generation
Approvals and Booking
Funding
Contract Changes
Billing/Accruals/Accounting
Termination/Asset Returns
Securitization
Overview of Contract
Special Features of OLFM

Formula Engine
Rules Architecture
Sub-Ledger Architecture Integration
Ebiz Tax Engine Integration
Flexibility in Accounting
Multiple ways of Contract Creation
Integration with Pricing Engine (Super-Trump)
 Different kind of Leases

Operating Leases
A lease whose total period is much less than the useful life of the asset is classified as operating lease. An operating lease
should not meet any of the criteria listed for direct finance lease.
Direct Finance Lease
A lease is considered Direct Finance Lease if it meets any of the following criteria:
The life of the lease is 75% or greater of the assets useful life.
The title should be transferred to Lessee at the end of the lease period.
There should be a bargain purchase option, much below the market value, at the end of the lease period.
The present value of the rental payments should be at least 90% of the original equipment cost.
TRAC Lease
TRAC (Terminal Rental Adjustment Clause) lease combines the advantage of leasing while retaining the option to purchase
the equipment at the end of the lease term at pre-determined residual value. Monthly payments can be adjusted based on
the residual value determined. If higher residual value is selected, the monthly payments can be reduced or vice-versa.
These kind of leases are usually used in Vehicle leasing industry.
Loans
Loan and Lease
Pricing

In Lease Contract, money is received at a periodic interval for many

months but paid by lessor now. Hence NPV of money comes into
Picture.

Net Present Value

Amortization
Un-Earned Income
Yield (IRR)
Contract Term
Transaction and Stream Types

Transaction Types
Booking
Rebook
Accrual
Billing
Release
Termination
Etc.

Stream Types
Billing and Accounting Heads
RENT, DOC FEE,
OLFM Responsibilities

Lease Super User

All HTML Based work

Lease Administrator
Forms Based, mainly used for running Concurrent Programs

Lease Centre Agent

Forms Based, used by Customer Service Agents
Table and API Naming

Each table has a short Name

OKC_K_HEADERS_ALL_B -> CHR
OKC_K_LINES_B -> CLE
OKL_K_LINES -> KLE
Etc.

Each table has a primary Key -> ID

Foreign Key named as <table_short_name>_<ID>

Table and API Naming

OKL<X><ABC><Y>.pls
<X> Type of API; S (Simple), C (Complex), R (Process), P (Public)
<ABC> Short Uniique Name
<Y> -> S for Spec, B for Body

Simple Entity API (TAPI)

OKLSAESS.pls AND OKLSAESB.pls
Complex API

Process API

Public API
Contract Header table

OKC_K_HEADERS_ALL_B/OKC_K_HEADERS_TL
Main Fields
CONTRACT_NUMBER
AUTHORING_ORG_ID
STS_CODE
SCS_CODE
START_DATE/END_DATE
CUST_ACCT_ID
BILL_TO_SITE_USE_ID
Contract Header Table

OKL_K_HEADERS -> Shadow Table

Main Fields
ID -> Same as ID of OKC_K_HEADERS_ALL_B
PDT_ID -> Product ID
TERM_DURATION
IMPLICIT_INTEREST_RATE
DEAL_TYPE
Lines and Items table

OKC_K_LINES_B/OKC_K_LINES_TL
Important Fields:
CHR_ID -> Contract ID
CLE_ID -> Parent Line ID
DNZ_CHR_ID -> De-normalized Contract ID
STS_CODE -> Status
LSE_ID -> Line Style ID

OKL_K_LINES -> Shadow table

Different kind of Lines
Line Styles
Line Style Description Parent
ID
33 FREE_FORM1
34 ITEM 33
42 FIXED_ASSET 33
43 FREE_FORM2 33
44 ADD_ITEM 34
45 INST_ITEM 43
47 INSURANCE
48 SOLD_SERVICE
49 LINK_SERV_ASSET 48
52 FEE
53 LINK_FEE_ASSET 52
56 USAGE
Item Table

Important Fields
CLE_ID -> Line ID
CHR_ID -> Contract ID
DNZ_CHR_ID -> Denormalized Contract ID
OBJECT1_ID1 -> Object ID1
OBJECT1_ID2 -> Object ID2
JTOT_OBJECT1_CODE -> Object Code
Meta Data Table

JTF_OBJECTS_B
Stores metadata about different objects (Tables/views)

Important Fields
OBJECT_CODE
FROM_TABLE
WHERE_CLAUSE
History table

OKC_K_HISTORY_B
Can be used to find out when contract went to a particular status.
Import Columns
CHR_ID
STS_CODE_FROM
STS_CODE_TO
CREATION_DATE
Party Roles

OKC_K_PARTY_ROLES_B

CHR_ID => Contract ID

DNZ_CHR_ID => Denormalized Contract ID
RLE_CODE => Code for Type of Party
OBJECT1_ID1 => Primary Key 1
OBJECT1_ID2 => Primary Key 2
JTOT_OBJECT1_CODE => Meta data object
Contract Creation

Many ways to create contract

Creating from Scratch

Copying from an Existing Contract
Using a Contract Template
From Lease Quote
From Contract Interface
Exercise

For a given contract, find out number of asset lines.

For a given contract, find out the inventory item used for asset lines.
For a given contract, find out different line types and their count.
Find out customer name, customer account for a given contract.
Find out number of contracts which are already expired (End date is greater
than system Date)
Find out number of contracts which are in BOOKED Status.
For lease contracts, find out all the different line types being used in your
system.
Write a query to find out contract number of all the contract templates.