R12 Finance Student Guide

EEnterprise nterprise RResource esource PPlanning lanning

(ERP)(ERP)

ERPERPGeneral Concepts

ERP ERP –– General ConceptsGeneral Concepts

What is ERP? The Current ScenarioWhy ERP?EvolutionExpectations

4

A collection of software systems that help to manage business processes for an entire organization

Designed to integrate all information processing support for an entire organization

ERPERP

5

• A group of people engaged in purposeful activity over extended time

• A tool used to coordinate in order to obtain Value or organizational goals

OrganizationOrganization

6

• Work activities across time and place, with a beginning, an end, and clearly identified inputs and outputs

• Has sequence, purpose, interaction

Business ProcessBusiness Process

ERP ERP -- DefinitionDefinition

“Software solution that addresses the Enterprise needs, taking a process view of the overall organization to meet the goals, by tightly integrating all functions and under a common software platform”

In simpler words, an ERP is a massive software architecture that supports the streaming and distribution of geographically scattered enterprise wide information across all the functional units of a business house. It provides the business management executives with a comprehensive overview of the complete business execution which in turn influences their decisions in a productive way.

Evolution of ERPEvolution of ERP

1960’s - Systems Just for Inventory Control

1970’s - MRP – Material Requirement Planning

(Inventory with material planning & procurement)

1980’s - MRP II – Manufacturing Resources Planning (Extended MRP to shop floor & distribution Mgmt.)

Mid 1990’s - E RP – Enterprise Resource Planning

(Covering all the activities of an Enterprise)

2000 onwards – E RP II – Collaborative Commerce

(Extending ERP to external business entities)

The Before and After of ERP:

“Before” -- each function is supported by multiple applications and interfaces

“After” -- each function is supported by a single application module within the ERP system itself, and all applications leverage a common, authoritative data source.

ERP ModelERP Model

The Current ScenarioThe Current Scenario

Islands of InformationDifficult to get timely & accurate

informationHeterogeneous Hardware &

Softwareplatforms & practicesPoor connectivity between differentorganizational locationsSticking with obsolete technologyResist to changeLack of proven man-power to

developintegrated software

Information IslandsInformation Islands

B

Why ERP is Why ERP is required?required?

For Management – to know what is happening

in the companyOne solution for better ManagementFor cycle time reductionTo achieve cost control & low

working capitalTo apply latest technologiesTo satisfy the customers with high

expectationsTo be Competitive & for survival

ERP covers a broad range of activities that are supported by a multi-module software application.

The different modules allow the business to manage the many parts of the business.

Some examples of modules:Planning Sales Inventory

Marketing Purchasing Distribution

Maintenance Accounting

Manufacturing Finance Human Resource

Basic ERP Applications Basic ERP Applications

ERP ERP –– ExpectationsExpectations

Integrating all the functions

Integrating the systems running in all the locations

Transparency of information using a single

data source across the organization

Software must be responsiveModularFlexibleEasy to add functionalitiesProvide growth pathHigh ROI

Financials

Accounts Payable, Accounts Receivable, Fixed Assets, General Ledger, Cash Management

The Ideal ERP Systems.......The Ideal ERP Systems.......

Human Resource

Recruitment, Benefits, Compensations, Payroll, time and labour , People management, Work Structure


Supply Chain Management

Inventory management, Supply chain planning, Supplier scheduling, sales order execution, Procurement planning, Transportation and distribution


Customer Relationship Management

Sales, Marketing, Service, Commissions, Customer contract and after sales support Relationship Management


Manufacturing

Engineering, Resource & Capacity planning, Material planning, Workflow Management, Shop floor management, Quality control, Bills of material, Manufacturing process, etc.


ERP ERP –– Options Options

OPTION 1 – MAKE [Using Internal resources]

Developing a custom-built ERP package, specific to therequirements of the organization, with the help of thein-house IT department

OPTION 2 – BUY

Going for Tailor-made ERP packages available in the market likeSAP, Oracle applications, Baan, PeopleSoft etc.`


OPTION 3 – MAKE [using External resources]

Developing a custom-built ERP package, specific to therequirements of the organization, with the help of a software solution provider


Typical ERP Features

(1) Multi-Currency

(2) Multi-Lingual

(3) Multi-Mode

(4) EDI / Electronic Commerce

(5) Web Enabled / Internet Communications

(6) Imaging & Multi Media

Typical architectural componentsTypical architectural components

CRMFoundati

on

MarketingSaleseCommerceBusiness Centre

Aplication s

Interaction HistoryUniversal Work Q

1-to-1 Fulfilment

Assignment Engine

EscalationsTCA

Installed Base

Tasks Notes

Resources

Calendar

Territories

OSS HR

OraclePeopleSoftSiebelSAPTallyBaanRamcoMicroSoft

DynamixSixthSenceMFG ProJD Edwards

Choosing an ERP ProviderChoosing an ERP Provider

Great PlainsRoss SystemsSCTCincomComputer AssociatesGEACSageNavisonScalaDeltekFourthshift

Technology

Support

Costs

5 StrategicRequirementLevels

Functionality

Goal:To select theMost Suitable Software Package Solution`

Vendor

ERP Product selection CriteriaERP Product selection Criteria

There are many advantages of implementing an ERP system. A few of them are listed below:

#A perfectly integrated system chaining all the functional areas together.

#The capability to streamline different organizational processes and workflows

#The ability to effortlessly communicate information across various departments\

#Improved efficiency, performance and productivity levels

#Enhanced tracking and forecasting

#Improved customer service and satisfaction

Advantages of ERP SystemsAdvantages of ERP Systems

While advantages usually outweigh disadvantages for most organizations implementing an ERP system, here are some of the most common obstacles experienced:

#The scope of customization is limited in several circumstances

#The present business processes have to be rethought to make them synchronize with the ERP

#ERP systems can be extremely expensive to implement

#There could be lack of continuous technical support

#ERP systems may be too rigid for specific organizations that are either new or want to move in a new direction in the near future

Disadvantages of ERP Disadvantages of ERP SystemsSystems

Execution phasesExecution phases

(1) ERP product selection

(2) Preparations

(3) ERP vendor

(4) Implementation

(5) Post-Implementation

ERP implementation Lifecycle

Business Process ReBusiness Process Re-- engineeringengineeringJust automating the existing business practiceswill not help ERP to achieve the anticipated results

Business Process Re-engineering [BPR] brings out thedeficiencies of the existing setup

BPR and ERP combination will give way to implement newsystems and the long pending improvements in theexisting systems

BPR may be time consuming but the scope can berestricted & controlled by the Management

• The BPR approach to an ERP implementation implies two separate, but closely linked implementations involved on an ERP site i.e. a technical implementation & a business process implementation.

• The BPR approach emphasis the human element of necessary changes within the organization, which is generally more

• Time consuming & has received its share of criticism for creating bloated budgets & extended projects.

• The ERP market shifts to a mid-market focus & as all implementation are becoming more cost sensitive; the BPR approach has come under some real scrutiny.

• IMPORTANCE OF CONFIGURATIONThis is the main functional area of the ERP

implementation.Business processes have to be understood

& mapped in such a way that the arrived solution matches with the overall goals of the company.

• THE PROTOTYPE

• A prototype- a simulation of the actual business processes of the company- will be used.

The prototype allows for thorough testing of the ‘to be’ model in a controlled environment.

CONFIGURATIONCONFIGURATION

• As the ERP consultants configure & test the prototype they attempt to solve any logistical problems inherited in the BPR before the actual go-live implementation.

•• STRENGTHS & WEAKNESSESSTRENGTHS & WEAKNESSES

– Configuring a company’s system reveals not only the strengths of a company’s business process but also- & perhaps more importantly- its weakness.

– It is vital to the health of the company & to the success of the ERP implementation that those configuring the system are able to explain what won’t fit into the package & where the gaps in functionality occur.

#Flexibility & Scalability.#Complexity#User Friendliness#Technology#Quick Implementation#Amt of Customization Required#Ability to support multi site planning &

control.#Local support infrastructure .#Total cost i.e license , training,

customization etc.

Some important points to Some important points to remember while evaluating remember while evaluating software includes.software includes.

In current business era, integrated software's Like ERP suffices the needs of all type of Industry.

There must be a vision for choosing appropriate ERP.

Consider all Advantages and Disadvantages of ERP you choose.

ConclusionConclusion……

ObjectivesObjectives

After completing this lesson, you should be able to do the following:◦

Define the purpose of this course◦

Identify the topics covered in this course◦

Locate additional reference material for the topics covered in this course

R12Oracle eBusiness Suite essentials

Course PurposeCourse Purpose

◦

The R12 Oracle E-Business Suite Essentials course provides a functional foundation for any E- Business Suite Fundamentals course. ◦

In the course, there will be demonstrations and hands-on practice, which reinforce the fundamental concepts.

WhatWhat’’s in the Course?s in the Course?

◦

Navigating in the new R12 user interface◦

E-Business Suite (EBS) product footprint and architecture◦

Overview of shared entities and integration◦

Fundamentals of Multiple Organizations (Multi-Org) ◦

Fundamentals of Flexfields◦

Fundamentals of System Administration

EE--Business Suite: Business Suite: DocumentationDocumentation

◦

Oracle Applications Concepts◦

Major E-Business Suite product families◦

Oracle Applications Multiple Organizations Implementation Guide ◦

Oracle Applications Flexfields

Guide ◦

Oracle Applications System Administrator’s Documentation Set ◦

Oracle Applications User’s Guide◦

Oracle Self-Service Web Applications Implementation Manual

Other ResourcesOther Resources

◦

MetaLink◦

Appsworld◦

Appsnet◦

Oracle Technology Network (OTN)

Oracle University CoursesOracle University Courses

◦

Instructor-Led Training (ILT)◦

Live Web Class (LWC)◦

Recorded Web Class (RWC)◦

e-Learning (Oracle University Knowledge Centre [OUKC]) ◦

Self-Service CD-ROM (SSCD)

LWCIn class

RWC SSC D

QUIZ

QUIZQUIZ

(1) What courses are available to learn Oracle ERP application?

SummarySummary

After completing this lesson, you should be able to:◦

Understand the target audience and purpose of this course◦

Identify the roadmap for this course and list the topics that will be covered in it◦

Gather inputs from where you can access additional reference material for this course

Navigating in R12 Oracle Navigating in R12 Oracle Applications Applications

Chapter 2


After completing this lesson, you should be able to do the following :◦

Log in to Oracle Applications◦

Navigate from Personal Home Page to Applications ◦

Choose a responsibility◦

Create Favorites and set Preferences◦

Use Forms and Menus◦

Enter data using Forms◦

Search for data using Forms◦

Access online Help◦

Run and monitor Reports and Programs ◦

Log out of Oracle Applications

Logging In to Oracle Logging In to Oracle ApplicationsApplications

Navigating from Personal Home Navigating from Personal Home Page Page to Applicationsto Applications

Forms-based applicationsSelf-Service Applications

Creating Favorites and Setting Creating Favorites and Setting PreferencesPreferences

Preferences FavoritesWorklist

Navigator

Choosing a ResponsibilityChoosing a Responsibility

Click a link to the function.

Click a link to

the responsibility

Responsibility Relationships: Responsibility Relationships: Many to OneMany to One

Accounts Payable Payroll

Responsibility RelationshipsResponsibility Relationships

Responsibility menu

User 1 User 3User 2 User 4

One to many

Many to many

Responsibility 1Responsibility 2Responsibility 3

NavigatorNavigator

Toolbar

Functions

Region tabs

Menu bar

Expanding or Collapsing the Expanding or Collapsing the Navigation ListNavigation List

◦

Select one of the following methods to expand an item to its next sublevel window:

Double-click the item.

Select the item and click Open.

Select the item and click Expand.

◦

To collapse an expanded item, select the item and click Collapse.

Expanding or Collapsing Several Expanding or Collapsing Several ItemsItems

To expand or collapse several items at once, click one of the following buttons:◦

Expand All Children expands all the sublevels of the currently selected item.◦

Expand All expands all the sublevels of all expandable items in the navigation list.◦

Collapse All collapses all currently expanded items in the navigation list.

Logging Out of Oracle Logging Out of Oracle ApplicationsApplications

◦

From the File menu, select Exit Oracle Applications.◦

Use this method to ensure that your username is cleared from system access.

Using Forms and MenusUsing Forms and Menus

NavigatingNavigating to a Form to a Form

Click for a Function.

Form TerminologyForm Terminology

Tool tip

Window

LOV icon

Record or row

Pop-up list

Title bar

Menu bar

Check box

Scrolling region

Block

Help

Form TerminologyForm Terminology

Region

Region tab Field

Button

Field ColorsField Colors

Field Color Description

White It allows data entry

Blue with Black Text It Indicates drilldown capability

Yellow It requires data entry

White with Green Text It Display only

Blue It indicates fields to use in “Query-Enter Mode”

Creating and Saving a New Creating and Saving a New RecordRecord

(M) File > New

New Save

(M) File > Save

Editing and Deleting a RecordEditing and Deleting a Record

DeleteEdit

(M) Edit > Record

(M) Edit > Delete

Using a List of ValuesUsing a List of ValuesClick LOV ico in the field.

The list of valid

values is displayed.

LOV: ShortcutsLOV: Shortcuts

◦

Auto Selection◦

List Search◦

Long-List Fields◦

Power List

Using CalendarUsing Calendar

Choose a year.

Choose a day.

Choose a month.

Clearing DataClearing Data

Clear

(M) Edit > Clear > Record (M) Edit > Clear > Field (M) Edit > Clear > Block (M) Edit > Clear > Form

Copying Data from a RecordCopying Data from a Record

Verify your data because all fields may not copy.

Item number Price Discount %Quantity

Item number Discount %Quantity

Searching for InformationSearching for Information

Query Versus FindQuery Versus Find

No find countQuery count

Wildcards

Existing

window

Menu bar,

[F11]

Query mode

Menu bar, Toolbar

List of values

Find window

Find mode

Using Find ModeUsing Find Mode

Click the Find icon on the toolbar:◦

Click the Find button on the Form.◦

Specify your search criteria.◦

Review the retrieved records.

Using Query ModeUsing Query Mode

(M) View > Query By Example > Enter:◦

Enter the search criteria.◦

(M) View > Query By Example > Run.◦

(M) View > Query By Example > Cancel.

Query OperatorsQuery Operators

Operat

or

=

!=

>

>=

<

<=

Example

= ‘Janet’

= 107

!= ‘Janet’

!= 107

>99.1

> ‘Joan’

>=55

<1000.00

Meaning

Equal to

Not equal to

Greater than

Greater than or

equal to

Less than

Accessing Online HelpAccessing Online Help

Using Window HelpUsing Window Help

(M) Help > Window Help

Navigation frame

Document frame

Search frame

Error MessagesError Messages

◦

To give you a hint, the application displays a short message in the message line.◦

To inform you of an error, the application displays an error window.◦

A History button also appears in the error window if an error of a more serious nature occurs.

Running Reports and ProgramsRunning Reports and Programs

Using Concurrent ProcessingUsing Concurrent Processing

Submits request

Reques t queue

Request runs.

Other online jobsPerform other

online interactive tasks.

Request 1

Request 3

Request 4

Request 2

Running Reports and ProgramsRunning Reports and Programs

◦

Concurrent processing:

Run non interactive tasks, such as reports and programs.

It does not interfere with the interactive work you perform on your computer.

◦

Standard Request Submission (SRS):

Use the SRS interface to run reports and programs.

View report output online.

Schedule reports and programs.

View log information.

QUIZ

QUIZQUIZ

(1) Which colour is used for optional fields in any form of oracle application?(2) One responsibility is shared by many persons?(3) Ctrl+S

can be used for save the records?

SummarySummary

After completing this lesson, you should have learned how to: ◦

Log in to Oracle Applications◦

Use Forms and Menus ◦

Use functionality of the buttons and tabs that appear in the Navigator window and other forms◦

Create Favorites and set Preferences◦

Understand Form terminology and characteristics◦

Create, save, edit, and delete record using Forms ◦

Search for data and enter data using Forms◦

Access online Help◦

Submit Concurrent and SRS requests◦

Log out of Oracle Applications

Introduction to Oracle Introduction to Oracle Applications R12 Applications R12

Course ObjectivesCourse Objectives

After completing this lesson, you should be able to describe the following:◦

Footprint of R12 E-Business Suite◦

Benefits of R12 E-Business Suite◦

R12 E-Business Suite architecture◦

Major components of the architecture◦

File system and database structure

Oracle EOracle E--Business SuiteBusiness Suite

Custome rs

Employe es

PartnersSuppliers

Complete EComplete E--Business Suite from Business Suite from OracleOracle

◦

Automate key internal business processes◦

Extend automation and collaborate with your trading partners◦

Drive continuous improvemen t with real- time intelligence

Order

Procure

Fulfill

Finance

DevelopMarket

Sell

Plan

MakeService

Maintain

HR

Projects

Contracts

Customers

Suppliers

Products

E-Business

Suite

Fusion Business Intelligence

Integrated, Yet ModularIntegrated, Yet Modular

The open applications solution enables you to:◦

Leverage investment in existing technology◦

Eliminate disparate systems as needed

Legacy Environment

Vendo r Y Planni ng

Vendor X Human Resourc es

Vendor Z Purchas ing

Oracle Marketi ng

Oracl e Finan ce

Benefits of Oracle EBenefits of Oracle E--Business Business SuiteSuite

◦

Available in multiple (32) languages◦

Supports multiple currencies◦

Supports flexible management of business processes◦

Has a common data model◦

Supports statutory and customary local requirements◦

Is built on open standards◦

Collaborates with trading partners

InformationInformation--Driven ApplicationsDriven Applications

DevelopMarket

Sell

Order

Plan

Procure

MakeFulfill

Service

Maintain

Finance

HR

Projects

Contracts

Customer s,

Suppliers,

Products, …

Customer s,

Suppliers,

Products, …

Philosophy behind Oracle E- Business Suite

• Start with a common data model that produces a single definition of key business entities (customers, suppliers, products, etc)

• Build a robust suite of applications designed to work together

• Support modular deployment of tailorable business flows

• Promote low-cost integration with service oriented, standards-based architecture

Major Oracle Application Product Major Oracle Application Product Families Families

◦

Oracle Financials◦

Project Management Product Suite◦

Supply Chain Planning and Management Suite◦

Oracle Manufacturing: Discrete and Process Management◦

Human Resources Management System Suite◦

Customer Relationship Management Suite

CustomerRelationshipManagement

Supply Chain Management

Manufacturing

Finan ce

Projects

Human Resources

Oracle Workflow

R12 ER12 E--Business Suite FootprintBusiness Suite Footprint

General LedgerReceivablesPayablesAssetsCash ManagementGlobal Consolidation SystemAdvanced CollectionsInternet ExpensesiReceivablesTreasuryLease ManagementInternal Controls ManagerFinancials Centralized Solution

Set (FINS)Financial Services Accounting

Hub (FSAH)

Daily Business Intelligence (DBI)Balanced ScorecardFinancials & Sales AnalyzerEnterprise Planning and

Budgeting Profitability ManagerFinancial Consolidation Hub

Government, Risk and Compliance Manager

Application Access ControlsApplication Configuration

ControlsGovernance, Risk and

Compliance Intelligence

Financials Corporate Performance Mgm

Government, Risk & Compliance

New in R12


Human ResourcesSelf-Service Human ResourcesAdvanced BenefitsCompensation WorkbenchiRecruitmentPayrollPerformance ManagementTime and LaborWorkforce SchedulingApprovals ManagementLearning ManagementiLearningTutorDBI for HR

Project CostingProject BillingProject Resource ManagementProject CollaborationProject ManagementProject Portfolio AnalysisProject ContractsDBI for Projects

Human Resources ManagementProjects

New in R12


Advanced Supply Chain PlanningConstraint Based OptimizationInventory OptimizationGlobal Order PromisingCollaborative PlanningStrategic Network OptimizationDemand ManagementAdvanced Forecasting & Demand

ManagementReal-time Sales & Operations

PlanningPredictive Trade PlanningDeduction and Settlement

ManagementTrade Promotion Optimization

Order ManagementAdvanced PricingRelease ManagementSales ContractsConfiguratoriStoreSupply Chain Planning and Order

Management Intelligence

Enterprise Asset ManagementSelf-Service Work RequestsAsset TrackingProperty Manager

Supply Chain Planning

Asset Lifecycle Management

Order Management

New in R12


PurchasingSourcing Sourcing OptimizationiSupplier PortalProcurement ContractsServices ProcurementAdvanced PricingiProcurementDBI for Procurement

Discrete ManufacturingManufacturing Execution SystemMobile Supply Chain ApplicationsFlow ManufacturingFlow SequencingProduction SchedulingRepetitive Manufacturing

OptimizationProcess Manufacturing

ManufacturingProcurement


Inventory ManagementMobile Supply Chain ApplicationsWarehouse ManagementTransportation ManagementTransportation Operational

PlanningLogistics Inventory VisibilityForwarding & Brokering OperationsFreight Payment, Billing & ClaimsTransportation SourcingTransportation Cooperative RoutingFusion Transportation Intelligence

Product Lifecycle ManagementProduct Data Synchronization for

GDSN and UCCnet ServicesCADView-3D

Customer Data ManagementProduct Information ManagemenFinancial Consolidation

Logistics Product Lifecycle Management

Master Data Management (Hubs

New in R12


MarketingTrade ManagementAdvanced PricingTeleSalesField SalesSales for HandheldsQuotingPartner ManagementProposalsIncentive CompensationMarketing & Sales Intelligence

TeleServiceService ContractsField ServiceSpares ManagementAdvanced SchedulerMobile Field ServiceDepot RepairiSupportService Intelligence

Advanced Inbound TelephonyAdvanced Outbound TelephonyEmail CenterScripting

Marketing and Sales Service

Interaction Center Technology

Oracle Applications R12 Oracle Applications R12 ArchitectureArchitecture

Understanding the Oracle Understanding the Oracle Applications Applications R12 ArchitectureR12 Architecture

The following topics are included in the Oracle Applications R12 architecture: ◦

Business architecture◦

Technical architecture

Business Architecture: Oracle Business Architecture: Oracle Applications R12Applications R12

The R12 EBS has five principles that drive its business architecture: ◦

Modern Foundation◦

Complete◦

End-to-end Integration◦

Global◦

Rapid Implementation

Technical Architecture: Oracle Technical Architecture: Oracle Applications R12Applications R12

The following topics are included in the technical architecture of Oracle Applications R12 ◦

Forms-based◦

Self-service (HTML/JSPs)◦

Business Intelligence◦

Mobile

Desktop/Client TierDesktop/Client Tier

Desktop/Client Tier Application Tier Database Tier

Internet

Applications TierApplications Tier

Desktop/Client Tier Database Tier

Internet

Web server/Listener

Portal (PHP)

Forms server

Concurrent Processing server

Servlet Engine

Java Server Pages (JSP)

Discoverer server

Reports server

Administration server

Database TierDatabase Tier

Desktop/Client tier

Internet

Application tier Database tier

The NetworkThe Network

◦

Although the network is not a tier of R12 E- Business Suite’s three-tier architecture, it is a critical component that makes it all work.◦

R12 EBS allows access through multiple channels including internal networks (LANs/WANs) and external networks (Internet/VPNs).◦

All of the choices in the network will ultimately affect your performance, for good or bad.

Oracle Applications Technology Oracle Applications Technology LayerLayer

The Oracle Applications technology layer is an integrated collection of components used by all Oracle Applications modules:

The various components of the Applications technology layer are discussed in the following slides.

Manufactu ring

Oracle Applications Technology Layer

CRM Financi als

HRMS . . .

QUIZ

QUIZQUIZ

(1) Oracle ERP application has three tier architecture? (True/False)(2) R12 Oracle applications supports how many languages?(3) Is network speed affects the performance of Oracle application? (Yes/No)

SummarySummary

In this lesson, you should have learned to describe:

◦

The basic architecture of Oracle Applications◦

The major components of the architecture

Shared Entities and IntegrationShared Entities and Integration

Chapter 4


After completing this lesson, you should be able to recognize the following:◦

Shared entities within R12 E-Business Suite◦

The key integration points and business flows between products in E-Business Suite (EBS)

What Are Shared Entities?What Are Shared Entities?

◦

Shared entities in R12 E-Business Suite enable one-time definition of an object and the use of that object across several products.◦

Shared entities are “owned” by a single product for table purposes only.

Shared Entities in EShared Entities in E--Business: Business: ExamplesExamples

Entity Description

AOL Application administration

Ledger Accounting information record

Unit of Measure Method of quantifying item

Items Raw Materials, Finished Goods , Services

Suppliers Vendors we buy from

Customers Buyers of the end product

Sales Force Individuals credited with Sales

Employees Personnel who perform assigned tasks

Locations Business sites (Address)

Organizations Logical Unit Entities

Application Object Library (AOL)Application Object Library (AOL)

Currenc ies

Langua ges

Menus

Responsibilities

User s

AOL

Site profile options

LedgerLedger

Chart of Accounts

Calend ar

Currency

Owned by General Ledger

Units of MeasureUnits of Measure

• Length• Base Unit

= 1 cm• 1 m = 100

cm• 1 km =

100,000 cm

Units of Measure are used by a variety of functions and transactions to express the quantity and measurement of items.

Units of Measure Responsibility - Inventory, Vision Operations (USA) (N) Setup > Units of Measure

SuppliersSuppliers

Suppliers are the individuals or companies from which you procure goods and/or services.

Responsibility - Payables, Vision Operations (USA)

(N) Suppliers > Entry

ItemsItems

You can define and control all items in an inventory. After the items have been defined, they are assigned to organization.

Responsibility - Inventory, Vision Operations (USA)

(N) Items > Master Items

CustomersCustomers

Customers are buyers of the end products and/or services.

Responsibility - Receivables, Vision Operations (USA)

(N) Customers > Customers

Sales ForceSales Force

Responsibility - CRM Resource Manager, Vision Enterprises

(N) Maintain Resources > Resources

Responsibility - Order Management Super User, Vision Operations (USA) (N) Setup > Sales > Sales persons

Sales Force comprises individuals credited with sales revenue.

EmployeesEmployees

Responsibility - Human Resources, Vision Enterprises

(N) People > Enter and Maintain

Employees are individuals employed by the company to perform certain tasks.

LocationsLocations

Responsibility - Human Resources, Vision Enterprises

(N) Work Structures > Location

Locations are physical addresses that may represent your company’s addresses or your customer’s addresses.

OrganizationsOrganizations

Responsibility Human Resources, Vision Enterprises

(N) Work Structures > Organization > Description

Organization is an entity designation used to partition data into logical units.

Key Business FlowsKey Business Flows

Sour ce

Make Mark et

Sell Supp ort

Plan

Back Offic

e

Forecast toPlan

Procure toPay

Demand toBuild

Campaign toOrder

Order toCash

Request toResolution

People toPaycheck

Project toProfit

Click toOrder

Contract toRenewal

Inventory to Fulfillment

Concept toRelease

Accounting to FinancialReports

Plan to Replenish

Benefits to Payroll

Procure to PayProcure to Pay

Payable s / i -

Expense s

Purchasing/i- Procurement

Accounti ng

General LedgerPayables/ Expenses/ Payments

Banks

Inventory

Requisitio ns

Invento ry

Activity

Accrual s

Supplie rs

Ledge r

Cash Management

Demand to BuildDemand to Build

WIPInventory

Purchasing / i-

Procureme nt

Requisitions Cost info

Planned Order info

Capacity

Requisiti ons

Supply/Demandinfo

UOM s

Item s

ASCP/MR P

BOM

EngineeringOrder Management

Material/Resource info

Cost Manageme

nt

Engineering BOM info

Campaign to OrderCampaign to Order

Marketing

SalesDiscoverer

Advanced Inbound

Order Fulfillment cycle (Order to Cash)

Scripting

Audience

Marketingcommunication

Phone callplaced

Call Routed

Script launched

Quote submitted

Order to CashOrder to Cash

Invoic es

General LedgerInventory

Receivable s/

Revenue/ Receipts

Inventory Transactio

ns

Cash Managem

ent

Order Managem

ent

Receivable s / i-

Receivable s

Purchasing / i-

Procureme nt

Re qs

Invent ory

activit y

Inter org/

Shipme nts

Bank s

Set of books

Item s

UOM s

Custome rs

Contract to RenewalContract to Renewal

Sales Contracts

Quoting

Service Contracts

Order FulfillmentOrder to Cash

Quote to bookedorder

AccountsReceivable

i-Store

Service contract for item with warranty

No item –warranty

only

Standard salescontract

Standard salescontract

Invoice

Request to ResolutionRequest to Resolution

i-Support

KnowledgeManagement

Installed Base

Teleservice

Inventory

Order CaptureFoundation

APIs

OrderFulfillment

(Order to Cash)

Solutions

Produ cts

owne d

Merchant assistance

Create SR

Create returnorder

Customer

Custom ers

Ite ms

Create RMA

People to PaycheckPeople to Paycheck

HRMS

HR Information

General Ledger

Accounting

Payroll Cash Management

QUIZ

QUIZQUIZ

(1) Location/physical address is defined by which application?(2) Customer once defined, need to be redefine when invoice generated? (True/False)(3) People to Pay check cycle require four applications integration? (True/False)

SummarySummary

In this lesson, you should have learned about:◦

The shared entities within R12 E-Business Suite◦

The key integration points and business flows between products in R12 E-Business Suite

Chapter 5

System Administration FundamentalsSystem Administration Fundamentals

Course ObjectivesCourse Objectives


Describe the layers of access control in Oracle Applications security◦

Define Function Security◦

Use Menu and Function Security to modify responsibilities◦

Define Data Security◦

Set profile options◦

Define Standard Request Submission

Introduction to Application SecurityIntroduction to Application Security

Successive Layers of Access Successive Layers of Access ControlControl

Access Control is implemented in successive layers and each layer builds upon the one that precedes it.

Self Service and Approvals

Registration Processes

Delegated Administration

Role Based Access Control

Data Security

Function Security

Optional

Required1

2

3

4

5

6

Increasing Flexibility and Increasing Flexibility and ScalabilityScalabilityIn Oracle User Management, each layer of access control adds an increasing level of administrative flexibility and scalability.

Self Service and Approvals

Registration Processes

Delegated Administration

Role Based Access Control

Data Security

Function SecuritySystem Administrator

Local Administrators

End Users

Flexibility and AutomationLevel of Administratio

Function SecurityFunction Security

Function SecurityFunction Security

◦

Defines an application◦

Defines data groups◦

Creates responsibilities and users

Application Security: OverviewApplication Security: Overview

Windows

Reports

User

Oracle

Application

Responsibili ty

Use of Menu and Function Use of Menu and Function Security to Modify Security to Modify ResponsibilitiesResponsibilities

Importance of ResponsibilitiesImportance of Responsibilities

Responsibilities determine:◦

Menus and Forms access◦

Available reports◦

Applicable Ledgers◦

Associated Operating Unit◦

Accessible applications

Components of a ResponsibilityComponents of a Responsibility

Request securitygroup

Data group

Menu

Exclusions

Defining a New ResponsibilityDefining a New Responsibility

Enter application andresponsibility name

Enter start and end dates

Select data group

Select menu

1

2

3

4

Select request group

Enter menu or function exclusions

5

6

Defining a New Application UserDefining a New Application User

Assign one or more responsibilities

Enter username and password

Require password changeLimit access attempts

Enter user’s start date

1

2

3

4

Steps 1, 3, and 4 are required

Assigning Responsibilities to Assigning Responsibilities to UsersUsers

Define or modify

responsibility

Excludefunctions

and menus

Defineapplication

user

Using Predefined

Responsibility

Using Custom Responsibility

Defineapplication

user

Define or modify

components

1 2

1

Assign Assign

Define or

Modif y

Menu Level 1

Menu Level 2

Menu Level 2

Function

Function

Function

Function

Function

Function

Subfunction

Subfunction

Subfunction

Menu Level 3

Menu Level 2

Function: A set ofexecutable code available as a

menu option

Subfunction: A subset of a form’s

functionality

Managing Function SecurityManaging Function Security

Menu Level 1

Menu Level 2

Menu Level 2

Function-C

Function-E

Function-G

Function-F

Function-A

Function-B

Function-A

Function-D

Function-D

Menu Level 3

Menu Level 2

Function-H

Excluding a function affects the function regardless of level.

Excluding a menu excludes all of its child functions.

Excluding Functions and MenusExcluding Functions and Menus

Data SecurityData Security

Set Profile OptionsSet Profile Options

Set Profile OptionsSet Profile Options

◦

Set profile option values◦

Use user profile option settings◦

Use system profile option settings◦

Discuss profile categories

Profile Hierarchy Levels: SecurityProfile Hierarchy Levels: Security

Site level

Application level

Responsibility level

User level

Personal Profile ValuesPersonal Profile Values

Depending on the responsibility, many users can change their personal options: ◦

Navigate to (N) Profile > Personal to see a list of the profiles already defined.◦

If the User Value field is unprotected, you can select a value for this profile option from the list of values, or enter a value directly.

SystemSystem Profile OptionsProfile Options

The System Administrator can set profile options at any level: ◦

Navigate to (N) Profile > System to see the Find System Profile Values Window.◦

You can set a profile value at the user, responsibility, site, or application level for profile options using the Security hierarchy type.

Standard Request SubmissionStandard Request Submission

Concurrent ProcessingConcurrent Processing

◦

Runs non-interactive tasks, such as reports and programs ◦

Does not interfere with the interactive work performed in your computer

Standard Request Submission Standard Request Submission

◦

Use the Standard Request Submission (SRS) interface to run reports and programs.◦

To view the report output online◦

To schedule reports and programs◦

To view log information

Submitting a RequestSubmitting a Request

QUIZ

QUIZQUIZ

(1) Function security is used by System Administrator for what purpose?(2) User must have three responsibilities for work on Oracle application? (True/False)(3) Profile option set at how many levels?

SummarySummary

In this lesson, you should have learned to:◦

Describe the layers of access control in Oracle Applications security◦

Define applications, responsibilities, and users in Function Security◦

Use Menu and Function Security to modify responsibilities◦

Define components of Data Security◦

Describe user and system profile options◦

Define concurrent and Standard Request Submission

Fundamentals of Flex fieldsFundamentals of Flex fields

Chapter 6



Describe flex fields◦

Define value sets◦

Define key flex fields◦

Define descriptive flex fields◦

Enter values

AgendaAgenda

◦

Overview of flex fields◦

Creating value sets◦

Defining the key flex field structure◦

Defining the descriptive flex field structure◦

Defining values

Overview of Flex fieldsOverview of Flex fields

Using Flexfields to Configure Using Flexfields to Configure Applications Applications

Applicationwindows

User-defined flexfield windows

General Ledger Assets

Benefits of FlexfieldsBenefits of Flexfields

Flexfields enable the following benefits:◦

Configuration of applications to support your accounting, product, and other codes◦

Construction of intelligent keys◦

Configuration of applications to capture additional data◦

Use of the application to validate values and value combinations entered by the user◦

Support for multiple field structures depending on data context

Key and Descriptive FlexfieldsKey and Descriptive Flexfields

__ Item Information _________

Category

Item

Color

Compu ter

Monito rLight

tanLTN

COM

876

Key flexfieldsbuild unique

entity identifiers

Descriptive flexfieldsgather additional

information

Store

Dept

Number

Exp. Dt

Payment TypeCC

54321

987

12 - 99

4958-2938-4747

Key Flex fieldsKey Flex fields

Standardwindow

Key Flex fieldwindow

Sales Information

Transaction

Item

Payment Type

Description

CustomerJane Doe

Computer - Monitor - Light Tan[ ]

COM-876-LTN

3987

Item Information

Item

Color

Computer

Monitor

Light tan

COM

876

LTN

Category

Using Key Flexfields to Build Using Key Flexfields to Build Intelligent KeysIntelligent Keys

Account Entry

21

42

502

015

Company

Division

Department

Account

Business A Business B

Account Entry

10

283

Corporation

Subsidiary

025

203

Department

Account

3003Division

Key Flex field: ExamplesKey Flex field: Examples

◦

General Ledger

Accounting Flex field

◦

Assets

Asset Key Flex field

Location Flex field

Category Flex field

◦

Service

Service Item Flex field

◦

Human Resources

People Group Flex field

Job Code Flex field

◦

Receivables

Territory Flex field

Sales Tax Location Flex field

◦

Inventory

Item Categories

System Items

Sales Orders

Item Catalogs

Descriptive Flex fieldsDescriptive Flex fields

Transaction

Ite m

Payment Type

Description

Customer

CC3987

Jane Doe

COM-876-LTN

[ ]

Second ID

Number

Payment Type

Store

Dept

Number

Store

Dept

Exp. Dt

Payment TypeCK C C

54321

987

4958-2938- 474712 - 99

54321

987

1028

MC 4565-3939

Sale Information

Computer - Monitor - Light Tan

Descriptive Flexfield: ExamplesDescriptive Flexfield: Examples

The following are examples of instances where descriptive flexfields are used:◦

Storing supplier numbers from converted suppliers◦

The Flexible Address Format◦

Storing order information with an invoice◦

Storing project information with an invoice◦

Storing vehicle information associated with the asset category “Vehicle”◦

Name of the customer service representative responsible for the sales order◦

Web link to map property or location in Property Manager

Key and Descriptive Flexfield: Key and Descriptive Flexfield: ComparisonComparison

Key Flex fields◦

Owned by one application; used by many◦

Required to set up, not always required to use◦

Supports intelligent keys◦

Identifies entities◦

Drives reporting

Descriptive Flex fields◦

Associated with tables in a specific application◦

Setup is optional◦

No intelligence, stores additional information◦

Captures additional information only

Components of a Flex fieldComponents of a Flex field

COMPUTER

PC

LAPTOP

SERVER

10CHAR

Independ ent

Upper Case

Required

12Char

Dependen t

Upper Case

Required

Flex field/Structure

Segments

Values(if needed)

Value set - format and validation

Segment 1 Segment 2

Flex field Structure

General Steps to Implement a General Steps to Implement a FlexfieldFlexfield

◦

Plan flexfield segments, structures, value sets, and values◦


Define flexfield structure◦

Define values◦

Define security and cross-validation rules, if necessary

Creating Value SetsCreating Value Sets

Planning a Value SetPlanning a Value Set

◦

Determine basic attributes of the set.◦

Select the appropriate validation type.

Validating Input Using Value Validating Input Using Value SetsSets

Item Information

Category

Item

Color

Computer

Monitor

Light tanLTN

Item value set

COM MACH FURN

Category value set

COM

876

755 876 933

Value Set AttributesValue Set Attributes

◦

Name: Unique value set name (Do not use XX-, XX_ , XXX-, XXX_ or any Oracle reserved name.)◦

Description: Free-form descriptive text◦

List type

List of Values

Long List of Values

Pop list◦

Security type

No security

Hierarchical

Non-hierarchical

Types of Value SetsTypes of Value Sets

◦

None: Validation is minimal.◦

Independent: Input must exist on the previously-defined list of values.◦

Dependent: Input is checked against a subset of values based on a prior value.◦

Table: Input is checked against values in an application table.◦

Special: Value set uses a flex field itself.

Types of Value SetsTypes of Value Sets

◦

Pair: Two flexfields together specify a range of valid values.◦

Translatable Independent: Input must exist on previously-defined list of values; translated value can be used. ◦

Translatable Dependent: Input is checked against a subset of values based on a prior value; translated value can be used.

PlanningPlanning Data Format ValidationData Format Validation

◦

Format Type: Value data type◦

Maximum Size: Maximum permitted size for a value◦

Precision: Number of decimal places◦

Numbers Only: Entry of numbers 0–9 only◦

Uppercase Only: Lowercase input becomes uppercase◦

Right-Justify Zero-Fill: Shifts number to right, pads from left◦

Max/Min Values: Beginning and ending values of a range

Defining the Key Flex field Defining the Key Flex field StructureStructure

Planning a Key Flex fieldPlanning a Key Flex field

◦

Identify the target flex field, the information required by Oracle Applications, and any qualifiers.◦

Plan the flex field structure, behavior, and appearance.◦

Define the key flex field structures.◦

Define any value sets required and their values.◦

Define security rules when appropriate.◦

Define cross-validation rules when appropriate.◦

Define shorthand aliases as needed.

Designing the Key Flexfield Designing the Key Flexfield LayoutLayout

Description:Description:

Category

Item

Color

Title

Structure

Order of segments

PromptsValue sets

Valu es

COM

Segment separator

876

LTN

COM

FURN

APPL

Sales Information

Key Flexfield StructureKey Flexfield Structure

10-203-3003-025-203 10-203-3003-025

_____Account Entry __

10

203

3003

025

Company

Division

Department

Account

Corporation

Subsidiary

Division

Department

Account

10

203

203

3003

025


Business A Business B

Storing Code CombinationsStoring Code Combinations


10

203

3003

025

Company

Division

Department

Account

SEGMENT1 SEGMENT2 SEGMENT3 SEGME

10 203 3003 025

Code Combinations Table

10 - 203 - 3003 - 025

(Code combination)

OtherOther Key Flex field FeaturesKey Flex field Features

◦

Dynamic insertion of new values◦

Cross-validation of segment value combinations◦

Security on value access◦

Aliases to speed up data entry

CrossCross--Validating ValuesValidating Values

CA CaliforniaNY New York

TX Texas

State Value Set

Asset LocationFlexfield

Asset Location

Country

State

United Kingdom

California

UK

CA

“UK-CA-Houston” not allowed

City Houston

Country Value Set

USA United StatesUK United Kingdom

City Value Set

Los AngelesLondonNew YorkHouston

Using Shorthand AliasesUsing Shorthand Aliases

Sales Information

Transaction

Customer

Item

Country

3754

Big Manufacturing

Address

City State

1211 State

Dallas TX

USAZip 75219

Description:Item Alias

Part Tan Monitor

COM-876-LTN

Tan MonitorHard DriveLaser Printer

COM-876-LTNCOM-535-15GCOM-788-630

ListofAliases

Defining the Descriptive Flex field Defining the Descriptive Flex field StructureStructure

Determining the Descriptive Determining the Descriptive Flexfield NameFlexfield Name

Procedure to determine the name of the descriptive flexfield:

1.

Click on a field in the same block in which the descriptive flexfield appears.

2.

Select Help > Diagnostics > Examine.

Identifying the Necessary Identifying the Necessary InformationInformation

Store number Check number

Credit card number

Expiration date Down payment

Grouping Information by UsageGrouping Information by Usage

Situation 1:(finance)

Situation 2:(check)

Situation 3:(credit card)

Store number

Store number

Store number

Check number

Credit card numberExpirationDate

Down payment

Isolate Common Information Isolate Common Information

Used by all tasks

Varies by task


Situation 2:(check)


Store number

Store number

Store number

Check number

Credit card number

Down payment

ExpirationDate

Determine Different ContextsDetermine Different Contexts


Situation 2:(check)


Store number

Store number

Store number

Check number

Credit card number

Down payment

Finance context

Check context

Credit card context

ExpirationDate

Descriptive Flexfield Descriptive Flexfield ComponentsComponents

◦

Global segment: Displays information that is common to all contexts◦

Context-sensitive segment: Displays information that is appropriate only to a particular context◦

Reference field: A field on the application window whose value is used to determine contexts◦

Context field: A field in the structure whose value is used to determine contexts

Using Global SegmentsUsing Global Segments

GlobalSegments(Common)

Credit card context

Finance context

Check context

Store number

Store number

Store number

ContextContext--Sensitive SegmentsSensitive Segments

Context-Sensitive Segments(Vary by context)

Finance context

Down payment

Finance terms

Account

Check context

Second ID

Credit card context

Card number

Expiration date

Store number

Store number

Store number

Distinguishing Between ContextsDistinguishing Between Contexts

Context fieldCredit card context

Card number

Expiration date

Second ID

Finance context

Down payment

Finance terms

Account

Check context

Store number

Store number

Store number

Using Reference FieldsUsing Reference Fields

Existingapplicationwindow

Proposedflexfielddesigns

Reference field

Global

Data

Elements

Context

Sensitive

Fields

Context 1 Context 2

Global

Data

Sensitive

Fields

Elements

Context

QUIZ

QUIZQUIZ

(1) Which are the types of Flexfields available in Oracle application?(2) [ ]

is the symbol for identification for Key FF on any form?(3) What is the purpose of Descriptive FF in Oracle ERP?

SummarySummary

In this lesson, you should have learned how to: ◦

Describe flexfields◦


Define key flexfields◦

Define descriptive flexfields

Fundamentals of MultiFundamentals of Multi--OrgOrg

Chapter 7


After completing this module, you should be able to do the following:◦

Define Multiple Organization (Multi-Org) ◦

Discuss the types of organizations supported in the Multi-Org model◦

Explain the entities of Multi-Org◦

Explain how Multi-Org secures data◦

Define Multi-Org Access Control

What Is MultiWhat Is Multi--Org?Org?

◦

Multi-Org is a server-side (applications and database) enhancement that enables single installation of Oracle Applications.

◦

Multi-Org keeps transaction data and some setup data separate and secure by different lines of business.

Basic Business NeedsBasic Business Needs

The Multi-Org enhancement provides features that enable you to:◦

Support multiple business units even if they use different ledgers◦

Secure access to data on a single instance by line of business◦

Define different organizational models◦

Sell and ship from different legal entities◦

Procure and receive from different legal entities◦

Produce reports across entities or within a single entity

Organization Types Supported in Organization Types Supported in thethe

MultiMulti--Org ModelOrg Model

GL, FA

AP, PO,AR, OM, and so on

INV, MFGShip

HR

Inventory Organization

Operating Unit

GRE/Legal entity

Ledger

Business Group

Types of Organizations Types of Organizations SupportedSupported in the Multiin the Multi--Org ModelOrg Model

Sample Organization StructureSample Organization Structure

LELE

Ledger

IO

OU

IO IO IOIO IO

MIO

OU OU

Define the Organization Define the Organization StructureStructure

US

US

Chicago

Japan

Japan

Corporate

Canada

Canada

East TokaraIslands

Inventory

CalgaryManufacturing

Warehouse

West

QuebecManufacturing

MontrealInventory

West Ops(OU)

Plant 1(IO)

Wid Co.Ledger

Plant 1(IO)

Wid Co.Ledger

East Ops(OU)

Plant 2(IO)

US 1 (LE)

US 2 (LE)

West Ops(OU)

US 1(LE)

Adding to the Organization Adding to the Organization StructureStructure

Original Add New

How MultiHow Multi--Org Secures DataOrg Secures Data

Users Responsibilities Operating Unit

Select Tied to an

Security ModelSecurity Model

The responsibility is key to multi-org security and reporting. It determines:◦

Operating unit◦

Reporting ability

Singapore

OperationsUS

New York

Supplier ABC Corporation

Address 1: New York, NY

Address 2:Orlando, FL

Address 3:Green Bay, WI

Address 1: Austin, TX

Address 2:New York, NY

Note the separation of supplier sites by OU

Global RegistriesGlobal Registries

DistributionSNG

Cross Organization ReportingCross Organization Reporting

◦

Report at multiple levels:

Ledger

GRE/Legal entity

Operating Unit◦

Security profile

MO: Top Reporting Level◦

Enhanced reporting features:

Reporting Level

Reporting Context

Organization Reporting Options Organization Reporting Options LedgerLedger

◦

MO: Top Reporting Level is set to GRE/Ledge

r.◦

Reporting Level parameter is set to Ledger.

◦

Reporting Context parameter is set to Ledger 1.

OU1Op Unit

Ledger 1

OU3Op Unit

LE1GRE/Legal

entity

LE2GRE/Legal

entity

OU2Op Unit

Organization Reporting Options Organization Reporting Options Legal EntityLegal Entity

◦

MO: Top Reporting Level is set to GRE/Legal entity.

◦

Reporting Level parameter is set to GRE/Legal entity.

◦

Reporting Context parameter is set to LE2.

OU2Op Unit

OU3Op Unit

Ledger

OU1Op Unit

LE1GRE/Legal

entity

LE2GRE/Legal

entity

Organization Reporting Options Organization Reporting Options Operating UnitOperating Unit

◦

MO: Top Reporting Level is set to Operating Unit.

◦

Reporting Level parameter is set to Operating Unit.

◦

Reporting Context parameter is set to OU3.

OU1Op Unit

OU2Op Unit

OU3Op Unit

Ledger 1

LE1GRE/Legal

entity

LE2GRE/Legal

entity

QUIZ

QUIZQUIZ

(1) Multi-Org structure is used for enablement of multiple organizations/ Business units for accessing of Oracle application? (True/False)(2) Operating unit is represented by which symbol in Multi-Org structure?(3) One can define different LE under one LEDGER? (True/False)

SummarySummary

In this lesson, you should have learned how to:◦

Define Multi-Org◦

Explain the Multi-Org entities◦

Explain how data is secured

Fundamentals of Workflow and Fundamentals of Workflow and AlertsAlerts

Chapter 8



Discuss Workflow concepts◦

Describe the benefits of Workflow◦

Describe alerts

Workflow ProcessesWorkflow Processes

Enabling EEnabling E--BusinessBusinessStreamlined business processes play a critical role in the transformation to e-

business. Workflow delivers a complete business process definition, automation, and integration solution.

Workflow: The wiring for e-business

Workflow ProcessesWorkflow Processes

End

An d

Customer: Send Order

Acknowledgme nt

Customer: Credit Check

Customer: Stock Check

Customer :

Advanced Shipment

Order Process

Customer :

Send Supplier Invoice

Custom er:

Receive External Order

Custom er: Get Order Details

Custom er:

Receive iStore Order

Workflow Activities: ExamplesWorkflow Activities: Examples

A workflow is a set of business rules that can:◦

Create accounting based on your requirements◦

Route business documents internally for approval◦

Initiate an outbound message (queue an approved purchase order for transmission to a supplier)◦

Be started as a result of an inbound message (for example, an inbound Payables Invoice)◦

Generate and send notifications that can be viewed from your personal home page or the Notifications Window◦

Generate and send email to an email client (respond directly to notifications without accessing Oracle Applications)

Integrating Business ProcessesIntegrating Business Processes

Order entry

Credit management

Shipping

Human resources

Web store

Warehouse

Data warehouse

Workflow

Accounting

Benefits of WorkflowBenefits of Workflow

WorkflowWorkflow--Driven Business Driven Business ProcessesProcesses

Workflow allows you to focus on managing the business process, not individual transactions.◦

Define and implement your business policies◦

Streamline the entire process◦

Route information◦

Capture exceptions and take action◦

Build continuous improvements directly into the process definition◦

Adapt your processes as your business changes

WorkflowWorkflow--Driven Business Driven Business ProcessesProcesses

◦

Workflow automates and streamlines business processes contained within and between enterprises.◦

For example, you can use workflow processes to:

Add personalized trading partner rules

Validate self-service transactions

Approve standard business documents

Step through daily transaction flows

Integrate with trading partner systems

Overview of AlertsOverview of Alerts

Alert Process OverviewAlert Process Overview

◦

Send email message

◦

Submit concurrent program request

◦

Run SQL script◦

Run a SQL script that starts a workflow

◦

Run operating system script

Client

Alert!

Server

Client

Event Alerts: Examples Event Alerts: Examples

Event alerts start when a record is inserted or updated. Examples of event alerts that could be created include:◦

New Code Combination: Notify GL Manager as soon as a new account combination has been created.◦

Shipment Confirmation: Notify a user as soon as a shipment has been processed.◦

Supplier Hold: Notify Purchasing Manager as soon as a supplier has been placed on hold.◦

Database monitoring: Inform the DBA as soon as database tables need more space and automatically allocate space.

Periodic Alerts: Examples Periodic Alerts: Examples

◦

Personnel: Show all employees terminated in the last six months (monthly)◦

Payroll: Show current balance and vacation reported by month (monthly)◦

Purchasing: Detect creation or edit of Vendor with nonstandard payment terms (weekly)◦

Purchasing: Show all blanket agreements that will expire (daily)

What Is an Exception?What Is an Exception?

◦

An exception is a specified condition found during an alert check.◦

For example, an alert checking for users who did not change their passwords within the designated time finds five users that meet the criteria. Each user found is an exception.

Action TypesAction Types

An action occurs after a monitored database event occurs or a periodic check of the database has been performed. Alert can perform the following actions:◦

Send an email message◦

Submit a concurrent program request ◦

Run a SQL statement script◦

Run an operating system script

Differences Between Alert and Differences Between Alert and WorkflowWorkflow

Alerts◦

Run on insert, update, or concurrent request◦

Limited conditional logic◦

Limited predefined frequencies

Workflow◦

Run on potentially any action, concurrent request◦

Any conditional logic◦

Almost any frequency

QUIZ

QUIZQUIZ

(1) In Oracle Application Work Flow is used for what?(2)Alerts can work on any conditional Logic? (True/False)

SummarySummary

In this lesson, you should have learned how to:◦

Recognize the benefits of Workflow◦

Describe a Workflow process◦

Describe Alerts

Oracle Business Intelligence Oracle Business Intelligence Products: OverviewProducts: Overview

Chapter 9



Describe the features of Daily Business Intelligence◦

Identify the business needs surrounding Daily Business Intelligence◦

Explain the relationship between Daily Business Intelligence and E-Business Suite

R12 Daily Business Intelligence: R12 Daily Business Intelligence: OverviewOverview

Daily Business Intelligence: Daily Business Intelligence: IntroductionIntroduction

Provide planning, execution, and reporting capabilities to optimize business performance

Marketing

Purchasing

Service

Sales

Project MgmtHuman Resources

Plan andModel

Execute

Reportand Analyze

Manufacturing

Finance

DBI

UsersReports

Business Needs for Daily Business Business Needs for Daily Business IntelligenceIntelligence

◦

Cost control◦

Changing market◦

Information availability◦

Increased accountability◦

Emphasis on corporate governance

Daily Business Intelligence in EDaily Business Intelligence in E-- Business SuiteBusiness Suite

Business Intelligence

Order

Procure

Fulfill

Finance

Develop

Market

Sell

Plan

MakeService

Maintain

HR

Projects

Contracts

Customers

Suppliers

Products

E-Business

Suite

Role Based, Daily, Integrated Management Reporting for E-Business Suite

Daily Business Intelligence: Daily Business Intelligence: CoverageCoverage

◦

Financials◦

Human Resources◦

Interaction Center ◦

i-Store◦

Marketing◦

Product Management◦

Projects

• Purchasing• Quoting• Sales• Supply Chain• Service

Contracts

Daily Business Intelligence Report Daily Business Intelligence Report ComponentsComponents

◦

Overview Pages◦

Parameter◦

Responsibilit

y◦

Region◦

KPI

Daily Business Intelligence Daily Business Intelligence PagesPages

Parameters

Regions

User with responsibili ty assigned

Daily Business Intelligence Daily Business Intelligence ParametersParameters

Fiscal dateand Days

until period end

Date

Period Type

Primary Dimension

Compar e To

Currenc y

Daily Business Intelligence Daily Business Intelligence RegionsRegions

Links region

Parameter region

Table region

KPI regi on

Daily Business Intelligence Daily Business Intelligence ReportsReports

Graphical region

QUIZ

QUIZQUIZ

(1)In DBI D Stands for?

(2) KPI is component of DBI Reports? (True/False)

SummarySummary

In this lesson, you should have learned how to: ◦

Describe Daily Business Intelligence features◦

Identify the business needs surrounding Daily Business Intelligence ◦

Explain the relationship between Daily Business Intelligence and E-Business Suite

Thank YouThank You

Oracle General Ledger Process

R12 Oracle General Ledger Management Fundamentals

Oracle General Ledger Overview

Oracle General Ledger

Oracle Financials

Human Resources Management

ManufacturingCustomer Relationship Management

Projects

Other Subledgers

General Ledger Overview

Edit

Analyze, Correct,and Adjust

Review

General Ledger

Record

Other Subledgers

Functions and Features

Financial Controls

Data Collection

Information Access

Financial Reporting and Analysis

General Ledger Accounting Cycle

Consolidate

Revalue/Translate

Review

PostCreate/Reverse

Journal Entries

Open Period

Run Reports/ Close Period

Review/ Correct Balances

Critical Implementation Issues

Identify critical implementation issues that affect multiple business areas:

• Shared information

• Information flows

• Open interfaces

• Non-Oracle systems

Oracle General Ledger Integrates with …

Financials● Payables● Receivables● Assets● Purchasing● Projects● Treasury● Property Manager● Lease Management

HRMS● Human Resources● Payroll

Continued…

Oracle General Ledger Integrates with …

Manufacturing● Inventory● Work in Process● Labor Distribution

Public Sector• Grants Accounting• Public Sector Budgeting• Public Sector Financials• Federal Financials

Continued…

Also Integrates with …

Business Intelligence/Analytic Solutions● Financial Consolidation Hub● Enterprise Planning and Budgeting (EPB)● Oracle Financial Services Applications (OFSA)● Daily Business Intelligence (DBI)● Activity-Based Management (OABM)

Integrating with Subledgers

Subledgers GL_INTERFACE

PostGL_BALANCES Journals

Journal Import

Importing to General Ledgerfrom Non-Oracle Applications

General Ledger

Journal Import

Other feeder systems

Web ADI

Budgets

Overview of Accounting Setup Manager

Central place for defining and maintaining accounting

setup for the following:● Legal Entities● Operating Units● Ledgers (primary and secondary ledgers)● Reporting Currencies● Subledger Accounting● Intercompany and Intracompany Balancing● Sequencing (Accounting and Reporting Sequencing)

Foreign Currency Concepts

The three key foreign currency concepts in Oracle General Ledger are:

Conversion

Revaluation

Translation

Multiple Currency Support

Currency

If difference is only currency,

Chart of accounts Calendar Accounting Method

US GAAPAccrual

Use a Secondary Ledger Use Reporting Currencies

If one or more of the following are different,

Budgeting

Oracle General Ledger gives you a variety of tools to create, maintain, and track your budgets, including the ability to upload budget amounts from an Excel spreadsheet.

January 2002Cost Center 100

Actuals Budgets Variance

Salaries

Supplies

Travel

TOTAL

14,000 15,000 1,000

4,000 3,500 (500)

1,500 1,700 200

19,500 20,200 700

Overview of Enterprise Planning and Budgeting (EPB)

Businessprocess flows

Allocations rules

Many out of the box calculations

Exception alerts

Enhanced reporting

EPB

Reporting and Analysis

Oracle General Ledger provides you with a variety of reporting, consolidating, and analysis capabilities.

• Online account and transaction analysis

• Standard reports and listings

• Financial Statement Generator reports

• Web ADI Report Manager

• Oracle Enterprise Planning and Budgeting

Standard Reports and Listings

Oracle General Ledger delivers over 70 standard reports. The following categories provide financial and non-financial information for General Ledger data.

Account Analysis

Chart of Accounts

Currency

Journals

Execution

Budget

Consolidation

General Ledger

Trial Balance

Other

Financial StatementGenerator Reports (FSG)

Oracle General Ledger's Financial Statement Generator (FSG) is a powerful and flexible tool you can use to build your own custom reports without programming.

Row

Column

Report

Accounting Setup Manager


Accounting Setups

An accounting setup is based on several factors, such as:● legal environment● number of legal entities maintained in the same primary ledger● business needs● transaction processing needs

Ledger Processing Options

Ledger Attributes U.S. East Operations

U.S. West Operations

U.K. Operations France Operations

Chart of Accounts Corporate Corporate Corporate French Statutory

Accounting Calendar/Period Type

Monthly/Month Monthly/Month Monthly/Month Fiscal/Fiscal

Currency USD USD USD EUR

Subledger Accounting Method

StandardAccrual

StandardAccrual

StandardAccrual

French GAAP

Ledger Options •Enable Average Balances•Enable Journal Approval

No Average Balances or Journal Approval enabled



This table is an example of ledger attributes for a global company that has four legal entities—two in the U.S., one in the U.K., and one in France.

Secondary Ledgers

Additional ledgers called secondary ledgers can optionally be assigned to an accounting setup to maintain multiple accounting representations for the same legal entity. For example:● Subledger Level Secondary Ledgers● Journal Level Secondary Ledgers● Balance Level Secondary Ledgers● Adjustments Only Secondary Ledgers

Reporting Currencies

If you only need a different currency representation of the primary or secondary ledgers, assign reporting currencies to them. For example:● Subledger Level Reporting Currency● Journal Level Reporting Currency● Balance Level Reporting Currency

Accounting Setups with Multiple Legal Entities

Multiple Legal Entities

When an accounting setup has more than

one legal entity…

…Multiple legal entities can

share the same primary ledger

attributes.

Accounting Setups with No Legal Entities

No Legal Entities

Accounting setups that have no legal

entities assigned…

…Can be used for multiple purposes

according to business needs.

Designing the Chart of AccountsFeature Comparison by Accounting Setup● The number of legal entities assigned to an accounting setup affects

different key features available in the E-Business Suite.● Review the features in the following table to understand how

different features are affected.

Feature One Legal Entity Assigned

Multiple Legal Entities Assigned

No Legal Entities Assigned

Open/Close GL Accounting Periods

Legal entities can open/close periods at different times.

All legal entities in a ledger must open/ close periods at the same time.

The standalone ledger can open/close periods independently.

Document Sequencing Legal entities can have autonomous document sequencing rules.

All legal entities in a ledger must share the same document sequencing rules.

The ledger can have autonomous document sequencing rules.

Multiple Legal Entity Journals

No Journal entries can cross multiple legal entities.

N/ANo legal entities exist.

Q & A

Ledger


Ledgers Defined

Ledgers

The Ledgers represent the core of a company’s financial records where every transaction flows

through.

Accounting Setup Manager Overview

SLA

Transaction

Accounting

Subledger Transactions

SLA

Corporate Ledger(Primary Ledger)

Local Statutory Ledger(Secondary Ledger)

AP AR FAOther Subledgers

Legal Entity

Maintaining Multiple Accounting Representations with Secondary Ledgers

Secondary Ledgers

Secondary Ledgers

The Secondary Ledgers are used for supplementary purposes and

can be used for global companies to comply with various legal

requirements.


Currency

If difference is only currency,

CorporateChart of Accounts

Monthly Calendar

Accounting Method

US GAAPAccrual

use a Secondary Ledger use Reporting Currencies

If one or more of the following are different,

Accounting Setup Steps

Define Secondary Ledger(s)(optional)

Complete Accounting Options

Complete Accounting Setup

Assign Legal Entities for Accounting Setup(optional)

Define Primary Ledger

Define Legal Entities

Define Calendars

Enable Currencies

Complete Optional Setup Steps

GL SETUP STEPS

Define Chart of Accounts

SETUP From the Accounting Setup Manager

Accounting Calendar

You create a calendar to define an accounting year and the periods it contains.

Unlimited Currencies

• You can enable predefined currencies or set up your own customized currencies

• You can enable a variety of currencies to allow you to enter transactions in multiple currencies

Company ProjectDivision Department Account

Chart of Accounts

Your chart of accounts is a list of Accounting Flexfields you create to identify general ledger accounts

• This flexible structure is made up of subfields or segments

• Each segment has a name and a set of values

Identifying Business Requirements

Identify the aspects of your business that you need to track and analyze; pay specific attention to aspects that span several applications. Examples include:

• Company, legal entity, fund

• Division, region, territory, state, country

• Location, plant, office, store

• Cost center, department, function

• Natural Account categories:– asset, liability, owner's equity, revenue and expense

• Product, product line, line of business, channel

• Project, phase, task, job, work order

Creating Accounting Flexfields

To create an Accounting Flexfield:1. Define a value set

2. Define an account structure

3. Define valid segment values

4. Optionally, create account combinations

5. Optionally, create aliases

6. Optionally, define security rules

Defining Value Sets

Use value sets to control the characteristics and format of the Accounting Flexfield segment.

The same value set can be used more than once in the same Accounting Flexfield structure.

Value_set 1Format: Char

Max size: 2

Validation:Independent

Value_set 1Format:Char

Max size:2



Max size: 3



Max size: 4

ValidationIndependent

Balancing Cost Center Natural Account

Intercompany

Defining the AccountingFlexfield Structure

Defining Segment Values

Enter valid values for each segment before using them in the Accounting Flexfield segments.

Value_set 1Format: Char

Max size: 2



Max size:2



Max size: 3



Max size: 4

ValidationIndependent

Balancing Cost Center Natural Account

Intercompany

010203

010203

100101999

TSAL10009999

Populating Segment Value Attributes

Attributes for each value include:● Translated Value● Description● Parent● Group and level● Segment qualifiers

– Allow budgeting and posting– Account type – natural account segment values– Control Account– Reconciliation Flag

● Enabled● Date From and To

Segment Qualifiers

Account Type

Budget Entry Allowed

Posting Allowed

Third Party Control Account

Reconciliation Flag

Asset, Liability, Owners' Equity Revenue, Expense Budgetary Dr, Budgetary Cr

Yes or No

Yes or No

Payables, Receivables, Yes, or No

Yes or No

Ledger Sets

Use ledger sets to group multiple ledgers for processing efficiency

Ledger Sets

Data Access Sets

Data Access Sets enable the specification of:

• read only or read and write access

Q & A

Basic Journal Entries


Journal Entries and the Accounting CycleReview/

CorrectBalances

Run Reports/Close Period

Open Period

Create/ReverseJournal EntriesPost

Review

Revalue/Translate

Consolidate

Journal Creation Methods

Manual Entry

Reversals

Recurring

MassAllocations

Journal Import Web ADI

Journal Components

Every journal entry in Oracle General Ledger has three components.

Enter Journals

Header LinesBatch

Grouping Journals into Batches

You can organize journal entries with common attributes into batches.

Batch 02 Accrual journal entries

Batch 01 Mar-02 journal entries

Batch 03 Euro journal entries

Manual Journal Entries

A manual journal entry is entered directly into Oracle General Ledger. Typical manual journal entries include the following: ● Functional currency entries● Foreign currency entries● Statistical entries● Intercompany entries

Performing Additional Journal Actions

Reverse Journal

Post

Change Period

Check FundsReserve FundsView Results

Posting Journals

Post journal

Enter journal

Prepost $500

Journal entry $ 25

After post $525

Account Balance

Report and inquireon updatedaccount balances

Q & A

Advanced Journal Entries


About Recurring Journals

Define recurring journals for transactions that repeat every accounting period, such as accruals, depreciation charges, and allocations

There are three major types of recurring journals

Dr. Temporary Labor…………..<No Amounts> Cr. Salaries Payable……………..<No Amounts>

Skeleton

Standard

Dr. Auto Lease Expense………..10,000 dollars Cr. Accounts Payable……………....10,000 dollars

Formula

Dr. Bad Debt Expense………..<Variable Amounts> Cr. Bad Debt Reserve………..<Variable Amounts>

Recurring Journal Types

Creating Recurring Journals

Create Recurring Journal Definition

Generate Recurring Journals

Review Entries – Are the Entries Correct?

Post Entries

Yes

Delete the Journal Entry and Correct the Definition

No

RecurringJE

Lines

Define an unlimited number of journal entry lines for each recurring journal entry

Specify the accounts to update with the recurring journals

Enter the amount to post to the designated account, or a formula to calculate the journal amounts

Indicate an automatic offsetting line for a recurring journal entry by entering the line number 9999

Recurring Journal Entry Lines

Automatic Offset Example

Line Account Debit Credit

10

20

30

9999

AR: Consulting Revenue

AR: Training Revenue

Sales Revenue

Services Revenue (Offset Line)

1,000

4,000

2,000

3,000

(System calculated)

MassAllocations Overview

MassAllocations: A single journal entry formula that allocates revenues and expenses across a group of cost centers, departments, divisions, or cost centers

Chicago rent

Total rent

Paris rent

Tokyo rent

1/31/3

1/3

MassAllocations versus Recurring Journals

Type of Entry MassAllocations Recurring Journals

Formula Entries Yes Yes

Standard Entries Yes Yes

Skeleton Entries No Yes

Currency Ledger or STAT Ledger, Foreign or STAT

Formulas per Journal Line

One formula for many lines

One formula per line

Formula A*B/C Any formula

1

2

3

5

Create MassAllocation Definition

4

Validate Definition

Generate MassAllocation Journals

Review Entries

Post Entries

Step

Steps to Create MassAllocation Journals

Defining MassAllocation Journals

Define a single formula to allocate amounts across a group of balancing segment values, departments, or cost centers. You can create a new MassAllocation batch or copy an existing batch.

Allocate total rent expense.

Dept BDept A Dept C

Defining MassAllocation Formulas

All MassAllocation formulas use the following equation to determine allocation amounts:

Oracle General Ledger uses the following format to represent the equation. Each factor in this equation relates to a separate formula line:

You can enter any combination of fixed amounts and account combinations in formula lines A, B, or C.

Cost Pool * (Usage Factor/Total Usage)

A * B/C

Account Segment Types

When entering an account into a Mass Allocation formula line, assign a segment type for each account segment

Looping

Summing

Constant

Target and Offset Accounts

Lines

Target Offset

MassAllocation Journal Example

Redistribute monthly rent expense to departments based on the amount of space each occupies

Rent Expense for Each Department =

Total Rent Expense X Area Used by Department / Total Area

In January 2002, the organization spends 10,000 dollars for rent

Dr. Rent expense 10,000 functional dollars

Cr. Rents payable 10,000 functional dollars

MassAllocation Journal Example

Allocate rent to three departments:

Human Resources 45% of total floor space

Research 30% of total floor space

Finance 25% of total floor space

The rent expense is redistributed by the following MassAllocation Journal entry:

Dr. Human Resources 4,500 functional dollars

Dr. Research rent 3,000 functional dollars

Dr. Finance rent expense 2,500 functional dollars

Cr. Total Rent Expense 10,000 functional dollars

Rent Expense Example

Segment Value Description

Department 000 Corporate

Department 101, 102, & 103 Human Resources, Research, and Finance

Department 999 Parent of 101, 102, and 103

Natural Account s: 5740 SQFT

Total Rent Expense Department Square Footage

Generating Mass Allocation Journals

● Generate MassAllocations to create unposted journal batches based on your validated MassAllocation formulas– The generated journal batch contains one entry for each

allocation formula in the batch● Use MassAllocation journals to reverse existing balances,

post new allocation amounts, or generate journals that increment the existing balances to match the current allocation amount

● Generate MassAllocation journal batches for any range of open or future enterable periods

Q & A

Advanced Security


Data Access Security for Legal Entities

and LedgersData Access Sets● Provide read-only and/or write access to data by ledger

or balancing segment values (BSVs)– Full Ledger Access

● Access to all data in a ledger● Specific BSV Access

– Access to only some of the BSVs in a ledger


and LedgersAccess Security for Multi-Ledger Processing• Generate recurring journals for a subset of BSVs for multiple

ledgers in a ledger set

Access Security for Cross-Ledger Operations• Run a report to aggregate data across a subset of BSVs

across multiple ledgers in a ledger set


and LedgersData Access Sets – Journals Example● Creating a Journal Batch

– You can create a journal batch for the ledger and/or BSVs for which you have write access to

● Viewing and Modifying a Journal Batch– You can view journal batches for which you have read-only or

write access to the ledger and/or BSV– You can modify journal batches only if you have write access

to all ledgers and/or BSVs that are used in the batch


and LedgersAccess to Full Ledger

Ledger

Legal Entities (BSVs)

Access Level

Actions:

Journals

Balances

Reports

• View Journals

• View Balances

• View Reports

Read-Only to Full Ledger

US Corporate Ledger ($)

US East(01)

US West

(02)US South

(03)


and Ledgers

US Corporate Ledger ($)

US East(01)

US West

(02)US South

(03)

Access to BSVs

Read-Only Read/Write

• View, Create, Post Journals• View and Update Balances

• View and Run Reports

• View Journals• View Balances• View Reports

Ledger


Access Level

Actions:

Journals

Balances

Reports


and Ledgers

Italy Statutory

Access to Multiple Ledgers

• View, Create and Post Journals

• View and Update Balances• View and Run Reports

EMEA Corporate

UK (11)

Italy

(12)Italy

(12)

Read-Write to Parts of Multiple Ledgers

Ledger


Access Level

Actions:

Journals

Balances

Reports

Q & A

Financial Budgeting


What Is an Oracle Budget?

An Oracle Budget can be:• Set up to calculate in the same way that actuals are calculated.• Translated to create comparisons between budget versus actual

reports in reporting currencies.

Available Budget Methods

Oracle Enterprise Planning and Budgeting

Non Oracle Systems

Budget Wizard

Oracle General Ledger

A budget consists of periods, accounts, and amounts.

Name: FY96PLAN

CC100 ….. $3000CC200 ….. $1500

Jan-1994 to Dec-1994 PeriodsPeriods

AccountsAccounts

AmountsAmounts

Anatomy of a Budget—Overview

Step 1: Define budgets and budget organizations.Step 1: Define budgets and budget organizations.

Step 2: Enter budget amounts.Step 2: Enter budget amounts.

Step 3: Review and correct budgets.Step 3: Review and correct budgets.

Step 4: Freeze budgets.Step 4: Freeze budgets.

Step 5: Report on budgets.Step 5: Report on budgets.

Budget Accounting Cycle

Creating a Budget

Organization -> Accounts

01 200 5800

01 200 6300

01 200 7340

Budget -> Periods

Amounts are entered into a combination of:

Budget Definition Steps

Step 1: Plan budget structure.

Step 2: Create budgets and hierarchies.

Step 3: Set up budget organizations.

Q & A

Multi-Currency


Overview of Multi-Currency

Pounds Yen Dollar Euro

Translation

Revaluation

Conversion

Foreign Currency Concepts

There are three key concepts in Oracle General Ledger that pertain to foreign currency:

Integrating with Subledgers

Foreign currency obligation is entered in Oracle Payables

Payables journal entry is recorded in General Ledger

Foreign currency is revalued and the unrealized gain or lost is recorded

Payables journal entry is recorded in General Ledger

Realized foreign currency gain or loss is calculated

Foreign currency obligation is paid in Oracle Payables


● Useful for consolidation reporting and analysis

● No need to physically move balances to create views of consolidation data

● Beneficial for parent consolidation entities that share the same chart of accounts and calendar with their subsidiaries

● Tighter link to ledgers!● For accounting and

reporting in another currency (in addition to the ledger's primary currency)

● Can be used with Primary or Secondary ledgers

Business Reasons Benefits

Defining Currencies

Use the Currencies window to define and enable or disable currencies

Conversion Overview

Oracle General Ledger converts journal amounts entered in a foreign currency to functional currency equivalents using daily conversion rates

Functional currencyForeign currency

Yen Dollar

Conversion

Conversion Example

Functional currency

Entered Journal Entry Lines

DR. Accounts Receivable………………….10,000 Euro

CR. Revenue…………………………………………10,000 Euro

CONVERT 1 Euro = .8 US Dollars

DR. Accounts Receivable………………….… 8,000 US$

CR. Revenue……………………………………….….. 8,000 US$

Foreign currency

Defining Conversion Rate Types

Foreign Currency Journals

Functional Currency Journals

Rate Types:–Spot–Corporate–User–EMU Fixed–User Defined

Daily Rates

5-1-97 JPY/US SPOT .71555-1-97 JPY/CAD CORP .0112

Entering Daily Rates

● Rates are Shared Across Ledgers● Loading Daily Rates Automatically

Revaluation Overview

Revalue account balances to reflect the change in the foreign currency rate from the date a transaction is entered and the reporting date

Paris

New York

Original U.S. Receivable1000 Euro

550 U.S. Dollars

Revalued U.S. Receivable1000 Euro

600 U.S. Dollars

USD Unrealized Gain50 U.S. Dollars

Revaluation Process

Functional currency Functional currency

Conversion at the time of the foreign currency transaction

Revaluation at the end of the accounting period

Foreign currencies

Foreign currencies

Running Revaluation

Collect Foreign Currency Receivable

Is the foreign Currency Receivable Still Unpaid?

Reverse Revaluation Journals

Revalue Foreign Currency Balances

Post to Unrealized Gain/Loss Account

Post to Realized Gain/Loss Account

Yes

No

Revaluation Example

REVALUE 1 Euro = .81 US Dollars

CR. Unrealized Gain…………………………………….. 100 US$

Entered Journal Entry Lines

DR. Accounts Receivable………………….10,000 Euro

CR. Revenue…………………………………………10,000 Euro

Convert 1 Euro = .8 US Dollars

DR. Accounts Receivable………………….… 8,000 US$

CR. Revenue……………………………………….….. 8,000 US$

DR. Accounts Receivable………………….… 100 US$

Translation Overview

Foreign currency translation is a process that lets you restate your functional currency account balances into a reporting currency

Foreign currency

Functional Balance Sheet

Assets Liabilities

ForeignBalance Sheet

Assets Liabilities

100,000 60,000

Period endRate = 0.75

HistoricalRate = 0.70

75,000 45,000

Owner's Equity

Owner's Equity

40,000

28,000

Period endRate = 0.75

Functional currency

Q & A

Consolidations


Overview of ConsolidationsWith Oracle General Ledger, you can consolidate any number of subsidiaries that use different ledgers, even those with different charts of accounts, currencies, and calendars

Subsidiary 1 Subsidiary 2 Subsidiary 3

Parent

Run Consolidation

Consolidation Tools

You can use the method that best suits your needs to consolidate financial information.● Financial Statement Generator (FSG)● Global Consolidation System (GCS)

FSGGCS

Consolidating Multiple CompaniesSharing a Single LedgerParent company


Co-CC-AcctMonthlyUSD

Co-CC-Acct Monthly USD

Co-CC-Acct Monthly USD

Structure: Co - CC - Acct Calendar: MonthlyCurrency: USD

Use FSG to consolidate data

Use FSG to consolidate subsidiaries that share the same ledger

Consolidating Multiple Companieswith Multiple Ledgers

Parent company


Co-CC-AcctQuarterlyUSD

Co-Acct-Prd Monthly Euro

Co-Acct-CC-Prd Weekly AUD

Structure: Co - CC - Acct - PrdCalendar: MonthlyCurrency: USD

Use GCS to map and consolidate

Global Consolidation System (GCS) Features and Benefits

Global Consolidation System provides:● A workbench to view the consolidation status of your

subsidiaries● Sophisticated consolidation mapping rules to map

accounts and specify transfer rules from the subsidiary to the parent

● A color-coded consolidation monitor that guides you through the consolidation steps

● A Consolidation Hierarchy Viewer to graphically display your consolidation structure

● The Interface Data Transformer makes importing data from external feeder systems easier

Global Consolidation System (GCS) Features and Benefits

(continued)Global Consolidation System provides:● Automatic generation of eliminating entries● Multilevel drilldown capabilities to subsidiary

balances and subledgers● Interface Data Transformer (IDT)● Powerful report publishing capabilities using FSG

and Web ADI● Integrated multidimensional analysis using Oracle

Enterprise Planning and Budgeting

Consolidation Workbench

The Consolidation Workbench and State Controller provide a central point of control for consolidating an unlimited number of subsidiaries to your parent ledger

Access all consolidation steps

Monitor consolidationprocess

View mappings and hierarchies

Q & A

Financial Reporting


Financial Statement Generator Features

Financial Statement Generator (FSG) is a powerful report building tool for Oracle General Ledger

Balance Sheet Income Statement Budget vs. Actuals

Defining Row Sets

Define the format and content of rows in financial reports

Income Statement Company 1

PTD YTD3,000 6,2001,000 1,0002,000 5,200

Row Set A

Income Statement Division 10

SalesReturnsNet Sales

THIS YR LAST YR 300 620 100 100 200 520

Row Set A


Define Column Sets

Define the format and content of columns in financial reports

Column Set A

Column Set B

Income Statement Company 1


PTD YTD3,000 6,2001,000 1,0002,000 5,200

Balance Sheet Company 1

CashInvestmentsReceivables

THIS YR LAST YR 100 200 600 400 980 700

When to Use FSG Reports

Use Financial Statement Generator Reports to do the following: ● Create custom financial statements● Create consolidated reports and perform consolidation

for companies sharing the same ledger● Report on translated and foreign currency amounts● Report on budget vs. actual and different amount types

such as PTD, QTD, and YTD

Using Ledger Sets in FSG Reports

● Ledger Sets are groupings of ledgers with the same chart of accounts and calendar/period type combination

● You can report on one or all ledgers in a Ledger Set● Group the Adjustment Only Secondary Ledger with its Primary

Ledger in a Ledger Set for financial reporting

For For adjustmentsadjustments

Statutory Ledger Set

Adjustment OnlySecondary Ledger

USD

Primary LedgerUSD

Q & A

Oracle Advanced Global Intercompany System


Intercompany Transactions

● Intercompany transactions are transactions between two or more legal entities in an enterprise

Vision Operations (USA)

Vision

France

Vision

Germany

Intercompany Transaction

R12 Oracle Accounts Payable Fundamentals

Procure to Pay Lifecycle

Requisitions

Purchase Orders

Receiving

Reporting

Invoice/ Payment

Supplier Performance

Supplier management

RFQs/ Quotations

CatalogContent

Management

Sourcing

Ordering

Analysis

Oracle Procure to Pay Process

InvoicePurchase order

SupplierRequest for quote (RFQ)

Receipts

Purchaserequisition

Demand Source

Order Pay

Quotation

Receive Enter

Requisitions

Approval

Inventory WIP MRP

Demand

Requisition

Requisitionpool

Order MgmtInternal

sales order

Manuallycreate

Order Mgmt

PO

Other Systems

Import/reschedulerequisitions

Suppliers

PaymentPurchase

order

Supplier

Request for quote (RFQ)

Receipts

Purchaserequisition Quotation

Returns

Purchase Orders

Requisitionpool

Receive against PO Match invoices in Payables

Automatically create

Maintain documents

Accept Revise Control

PO

Manually create

Approve

Receiving

Inventory

Order Entry

Internal shipment Inspect

Transfer

Shop floor

InventorySupplier

Shipment

Expense

Receive Deliver

Invoicing

Receiveinvoices

Enter basic information

Enter detailedinformation

File invoicesMaintain invoices

If appropriate, match invoiceto purchase order

or receipt

PO Invoice

Import/Enter invoice

Payment

Pay invoice

Record manualpayment Validate payments:

• Confirm checks• Update invoice • Payment history

Create quickpayment outside

Oracle

Create computer-generated payment

Format payments:• Print checks• Load EFT data

Modify payments: • Remove/add invoices• Modify payment details

Run Pay run

Createsinglepayments

Select validated

invoice


Requisitions

Purchase Orders

Receiving

Reporting

Invoice/ Payment


Supplier management

RFQs/ Quotations

Catalog Content

Management

Sourcing

Ordering

Analysis

Suppliers Page

– Search

– Company Profile• Organization

• Tax Details

• Address Book

• Contact Directory

• Business Classification

• Products and Services

• Banking Details

• Surveys

– Quick Update– To Do List– Terms and Control

• Accounting• Tax and Reporting• Purchasing • Receiving• Payment Details• Invoice

Management

Supplier – Organization

– Parent Supplier Name• Must already be defined to select

– Number• Parent supplier number

– Customer Number

Your SupplierCust. #9924

Your Company

Parent

ChildChild

Supplier – Tax Details

– Rounding Rule– Set Invoice Values as Tax Inclusive – Allow Withholding Tax– Withholding Tax Group– Tax Registrations

Supplier – Address Book and Contact Directory

Purchasing site RFQ Only site

Tokyo New York

Purchasing site

Paris

Sue Taylor, Sales Mgr

Bill Wilson, Sales Quotes

Liz Miller, Sales Rep

Aaron Carr, AR Mgr

Payment site Primary Pay site

Supplier

Supplier – Accounting

Supplier accounting values default to all new supplier sites you enter for the supplier. Supplier site accounting values default to all new invoices for the supplier site. You can override any accounting defaults during supplier site entry and invoice entry.

Supplier – Tax and Reporting

– Allow Tax Applicability– Set for Self Assessment/Reverse Charge– Allow Offset Taxes– Tax Classification Code– Income Tax Reporting Site

Supplier – Purchasing

– All New Orders– Ship-To Location– Bill-To Location– Ship Via– Pay On Receipt– Alternate Pay Site – Invoice Summary Level – Create Debit Memo from RTS Transaction *– Gapless Invoice Numbering– Free-on-Board (FOB)– Freight Terms– Transportation Arranged– Country of Origin

Poor Quality

Supplier – Receiving

– Enforce Ship-To Location– Receipt Routing– Match Approval Level– Quantity Received Tolerance– Quantity Received Exception– Days Early/Late Receipt Allowed– Receipt Date Exception– Allow Substitute Receipts– Allow Unordered Receipts

Supplier Information – Payment Details

• Payment Method

• Pay Each Document Alone

Check

Electronic

Outsourced Check

Wire

Invoice Check

1 to 1

Supplier – Invoice Management

– Invoice Details– Hold from Payment

– Payment Terms• Priority

• Terms

• Pay Date Basis

• Pay Group

• Always Take Discount

• Exclude Freight From Discount

• Create Interest Invoice

Supplier Site Settings

Tokyo

New York

Paris

Net 30

2/10, Net 30

Net 30

Due

Discount

Due

Tokyo Office

Headquarters

Headquarters

Payment Terms Pay Date Basis Ship-To Location

ABC Corp. Sites

Supplier Information – Payment Details

• Payment Method

• Pay Each Document Alone

Check

Electronic

Outsourced Check

Wire

Invoice Check

1 to 1

Supplier – Invoice Management

– Invoice Details– Hold from Payment

– Payment Terms• Priority

• Terms

• Pay Date Basis

• Pay Group

• Always Take Discount

• Exclude Freight From Discount

• Create Interest Invoice

Supplier Site Settings

Tokyo

New York

Paris

Net 30

2/10, Net 30

Net 30

Due

Discount

Due

Tokyo Office

Headquarters

Headquarters

Payment Terms Pay Date Basis Ship-To Location

ABC Corp. Sites

Merging Suppliers

Run supplier audit report

ABC Corp

ABC Corporation

Review merge results

ABC Corporation

Merge suppliers

Identify duplicate suppliers

Maintain audit trail

Data Example – Supplier Merge

Oracle Corporation

Target/Correct Supplier

Site Names

CA-REDWOOD

IL-CHICAGO

VA-RESTON

FL-ORLANDO

Oracle Corp

Incorrect Supplier

Site Names

CA-REDWOOD

FL-ORLANDOmerge

copy

Merging Suppliers

After you have merged suppliers, Payables automatically prints the following reports:

– Purchase Order Header Updates Report– Supplier Merge Report

Financials Options

Supplier-Purchasing

RFQ Only Site

Ship-To Location

Bill-To Location

Inventory Organization

Ship VIA

FOB

Freight Terms

Invoices


Requisitions

Purchase Orders

Receiving

Reporting

Invoice/ Payment


Supplier management

RFQs/ Quotations

Catalog Content

Management

Sourcing

Ordering

Analysis

Overview of Invoices

Enter supplierImport/Enterinvoice Validate invoice

Create accountingentries in Subledger

Accounting

Pay invoice

Create PO

Enter requisition

Match to PO

Invoice Types

– Standard– Credit Memo– Debit Memo– Mixed– Prepayment

– Expense Report– Withholding Tax– Interest– Retainage Release– Transportation

Invoices

Entering Invoices Overview

You can manually enter invoices into Payables using:– Invoice Workbench – Quick Invoices window

Creating Invoices Automatically

Your system can create the following types of invoices:– Recurring Invoices– RTS Invoices – Retroactive Price Adjustment Invoices

Adjustment and PO Price Adjustment Invoices

You can use the Invoice Workbench to view and query by example Adjustment and PO Adjustment invoices.

– You cannot enter or update these invoices.– You cannot match these invoices to receipts and

purchase orders.

Invoice Import

You can import invoices or invoice information to create invoices in Payables.

– Oracle Internet Expenses expense reports – Payables expense reports – Credit Card invoices – EDI invoices– XML Invoices– Invoices from external

systems– Oracle Property Manager

invoices – Oracle Assets lease

payments

Invoice Structure

• Currency• Terms

• Amount• Pay Date

• Type• Amount• Charge Acct.

• Type• Supplier• Number

ScheduledPayments

Distributions

Invoice Header

Invoice Lines

• Type• Amount

• Accounting• Product Integration

Invoice Workbench

Invoices Window– Invoice Header– General– Lines– Holds– View Payments– Scheduled Payments– View Prepayment

Applications

Other Features– Actions– Calculate Tax– Tax Details– Corrections– Quick Match– Match– Distributions

Entering Basic Invoices in the Invoice Workbench

ScheduledPayments

Distributions

Invoice Header

Invoice Lines

Entering Invoice Header Information

– Invoice Type– Trading Partner– Supplier Number– Supplier Site– Invoice Date– Invoice Number– Amount– Description– Payment Terms– Payment Method

ScheduledPayments

Distributions

Invoice Header

Invoice Lines

Entering Invoice Line Information – Line Types

– Type• Item • Freight• Miscellaneous• Tax

– Amount

ScheduledPayments

Distributions

Invoice Header

Invoice Lines

Entering Invoice Line Information – Other Attributes

– GL Date– Account– Track as Asset– Description– Status– Accounted– Project/Task/

Expenditure ScheduledPayments

Distributions

Invoice Header

Invoice Lines

Entering Distributions

Invoice Validation

Manual

Allocation

Matching

Distribution Set

Distribution Sets

Use a Distribution Set to automatically enter distributions for an invoice when you are not matching it to a purchase order. You can create:

– Full Distribution Sets– Skeleton Distribution Sets

Entering Distribution Types

– Type:• Item• Freight• Miscellaneous• Tax• Withholding• Prepayment

– AmountScheduledPayments

Distributions

Invoice Header

Invoice Lines

Entering Freight Distributions

There are three ways to create freight distributions:– Enable the Automatically Create Freight

Distribution Payables Option– Allocate freight across invoice distributions– Manually enter freight distributions

Tax Distributions

Tax distributions are automatically created when you click Calculate Tax or when you validate the invoice.

Withholding Tax distributions are automatically created when you validate the invoice.

Allocating Freightand Miscellaneous Distributions

Miscellaneous Freight

Item

Tax Distributions

Tax distributions are automatically created when you click Calculate Tax or when you validate the invoice.

Withholding Tax distributions are automatically created when you validate the invoice.

Allocating Freightand Miscellaneous Distributions

Miscellaneous Freight

Item

Creating Distributions by Allocation in the Invoice Workbench

You can use the Charge Allocations window to automatically create freight or miscellaneous distributions.

Allocation Restrictions

– Cancelled invoices– Paid invoices– Applied prepayments– Items matched to multiple PO distributions– Accounted allocations

Scheduled Payments

– Scheduled Payment Holds– Due Date– Gross Amount– Priority

ScheduledPayments

Distributions

Invoice Header

Invoice Lines

Entering Purchase Order and Receipt Matched Invoices

Match invoices to:– Purchase order– Purchase order shipments– Purchase order distributions – Purchase order receipts and receipt lines

Match Approval Level Options

2-Way

3-Way

4-Way

Quantity Billed

Unit Price PO Line Price

Quantity Ordered

Quantity Billed Quantity Received

Quantity AcceptedQuantity Billed

Invoice PO

Matching to a Purchase Order

Detail

Header

Item line 2

Item line 1

Distribution line 1

Shipment line 2

PO information Supplier information

Shipment line 1

Distribution line 1

Distribution line 2

Distribution line 1

Shipment line 1

Matching to Purchase Order Shipments

6 Items

Actually

Shipped

6 Items

Charged

6 Delivered

10 Items on Scheduled Shipment,

to be shipped to department 110

110

Matching to Purchase Order Shipments

6 Items

Actually

Shipped

6 Items

Charged

6 Delivered

10 Items on Scheduled Shipment,

to be shipped to department 110

110

Matching to Purchase Order Distributions

10 Items on Scheduled Shipment

• 7 to be sent to Dept 110• 3 to be sent to Dept 120 120

0 Items Charged

0 Delivered

110

6 Items

Charged

6 Items

Actually

Shipped

6 Delivered

Matching to Receipts and Receipt Lines

10 Items on Scheduled Shipment

• 10 to be shipped to Dept 110

Search for PO

Receipts

Match Details

Recorded on PO

Invoice PO

Must have Receipt to Match

Matching to Purchase Orders or Receipts in the Invoice Workbench

To match an invoice to a purchase order or receipt:

– Use the Match to Purchase Order/Receipts window

– Enter the PO number in the invoice header

– Enter the PO Distribution, PO Shipment, or Receipt information in the invoice line

– Use Quick Match

Define Purchase Order Matching Tolerances (Optional)

– Quantity ordered %– Maximum quantity ordered– Quantity received %– Maximum quantity received– Price %– Exchange rate amount– Shipment amount– Total amount

Invoice Validation Process

Enter or import invoices

Validate invoice

Optionally match to PO

or receipt

View invoice

Pay invoice

Receive invoices electronically or

in the mail

Createsubledger accounting

100,000

AP

60,00010,00030,000

Levels of Invoice Validation

– System level validation– Batch level validation– Invoice level (online) validation

Validate invoice

Reports

Batch Control Report by Batch Name

Batch Control Report by Entered By

Credit Memo Matching Report

Invoice Aging Report

Invoice Audit Listing

Invoice Audit Listing by Voucher Number

Payments


Requisitions

Purchase Orders

Receiving

Reporting

Invoice/ Payment

Supplier management

RFQs/ Quotations

CatalogContent

Management

Sourcing

Ordering

Analysis


Invoice Payment Overview

Entersupplier

Enterinvoice

Validateinvoice

Transfer information to

General Ledger

Create accounting

entries

A/P100,000

60,00010,00030,000

Pay invoices

Reports

Invoice History Report

Invoice Register

Invoice on Hold Report

Invoice Audit Report

Matching Detail Report

Matching Hold Detail Report

Reports

Recurring Invoices Report

Print Invoice Notice

Matching Hold Agent Notice

Supplier Paid Invoice History

Matching Holds by Buyer

Reports

Distribution Set Listing

Key Indicators Report

Receiving Hold Requestor Notice

Expense Reports and Credit Cards

Objectives

After completing this module you should be able to do the following:

– Describe the period closing process in Payables and Purchasing

– Reconcile accounts payable transactions for the period

– Identify key programs and reports– Understand setup options– Understand additional implementation

considerations

GL Interface

Key Processes

Payables

Create Accounting -

Final

Transfer to GL

Subledger Accounting

GeneralLedger

Import to GL

Post in GL

Accounting Details

Oracle Assets, Projects, Procurement, Inventory

Create Accounting -

Draft

Review/Correct Accounting

Distri-butions

Prepare for Period Close

– Complete all receipt processing– Confirm or cancel all pending pay runs– Update matured bills payable– Import invoices– Export and process expense reports– Interface adjustments to supplier invoices and

expense reports– Reconcile bank statements

Run Validation/Review and Resolve Holds

Resolve Invoice Holds

Rerun Validation if Necessary

Run the Invoice ValidationProcess

Create Subledger Accounting

Create Accounting

View Accounting

Make a Payment

Enter an Invoice

Create Accounting Program

The Create Accounting program processes eligible accounting events to create subledger journal entries. The program applies the application accounting definitions that are created in the Accounting Methods Builder (AMB).

The following report is generated by this program:– Oracle Subledger Accounting Program Report

Transfer and Review

Run Transfer Journals to

General Ledger

Review TransferResults

Review Account Analysis Report

Transfer Journal Entries to GL Program

The Transfer Journal Entries to GL program enables you to transfer any eligible journal entries to General Ledger, including those from previous batch runs that have not yet been transferred to General Ledger.

The following report is generated by this program:– Transfer to Journal Entries to GL Report

Post Journal Entries in GL

Create Remaining Mass Additions

Post Journalsin GL

Accounting for Mass Additions –Periodic Accrual (Period End)

1

Expense AP Accrual

Asset Cost

01-000-156001-000-2221 01-000-2210

3

4

2

5

200

200

6

200

200

01-000-1570

200 200

200200

-0- 200 200 -0-

Expense/ Clearing

AP Liability

Accounting for Paymentswith Cash in Transit (Cash Clearing)

Cash Expense/ Clearing/ Accrual

01-000-1110 01-000-2210 01-000-1570

Cash in Transit

01-000-1150

400400

400400

400400

-0- -0-400 400

1

3

2

AP Liability

Accounting for Paymentswithout Cash in Transit (Cash Clearing)

400400

400400

-0-400 400

1

2

Cash Expense/ Clearing/ Accrual

Cash in Transit

01-000-1110 01-000-2210 01-000-157001-000-1150

AP Liability

Reports

Accounts Payable Trial Balance

Accrual Rebuild Reconciliation Report

Accrual Write-Off Report

Matched and Modified Receipts Report

Account Analysis Report

Reports

Payables Posted Invoice Register

Payables Posted Payment Register

Receipt Accruals - Period End

Receiving Account Distribution Report

Reports

Unaccounted Transactions Report

Uninvoiced Receipts Report

Expense Reports

An Expense Report is an invoice representing an amount due to an employee for business-related expenses.

Expense Reporting Process

Employee creates expense

report

Manager approves report

Accounts Payables department approves report

Approved: Creates payment; notifies employee

Rejected: Workflow notifies

employee

Adjusted: Creates payment; notifies employee

Internet ExpensesPayables

1099 Reporting

1099 Reporting Overview

In the United States, you must report to the Internal Revenue Service certain types of payments you make to 1099 reportable suppliers. In the supplier window, you can designate suppliers as federally reportable.

Transaction Taxes in Payables

Overview of Transaction Taxes in Payables

Payables leverages E-Business tax to setup, calculate, and manage transaction taxes such as:

– Sales– VAT– Excise– Customs Duty– Environmental– Offset– Recoverable Tax

Overview of Tax Calculation on Invoices

Enter Invoice

E-Business Tax

Validate InvoiceClick

Calculate Tax

Change Tax Driver

View Tax Lines and

Distributions

Calculates Tax

Calculates Tax

Recalculate Taxes

Working with Transaction Taxes in Payables

Enter manual tax lines

Update tax lines

Exclude tax from discounts

Self-assess taxes

Employ taxes with deferred recoverability

Exclude Tax from Discounts

To exclude tax from discounts, enable the Exclude Tax From Discount Calculation Payables Option

Invoice Amount

-Total Tax Amount

Discountable Invoice Amount

Self-Assessed Taxes

Enable the following option in the Party Tax Profile:– Set for Self Assessment/Reverse Charge option

You can enable this option at the following levels:– Regime– Regime, Tax– Regime, Tax, Tax Jurisdiction

Taxes with Deferred Recoverability

Level Allow Tax Recovery

Default Recovery Settlement

Tax Accounts

Regime Deferred

Tax Deferred •Tax Expense•Recoverable Tax•Interim Tax (used for Accrual Based accounting only)

Tax Status Deferred

Tax Rate Deferred

Tax Variances

– Tax Exchange Rate Variance (TERV) – Tax Invoice Price Tax Rate Variance (TIPV) – Tax Rate Variance (TRV) – Tax Quantity Variance (TQV)

Documents

R12 Finance Student Guide