Wednesday, February 6, 2013

Enterprise Resource Planning (ERP) - Oracle E-Business Suite (EBS)

Lets take an example. Suppose you are running a small grocery shop named "Raja Grocery", so the typical operation as a shop owner is you basically buy groceries from some big seller and stock it in your shop. Now people come to your shop for day-to-day needs and buy stuff from your shop at a slightly higher price than what you originally bought and stocked it in your shop.

Occasionally you may not be carrying items or run out of stock that people ask for so you make a note of it and promise the person to come back tomorrow and they will get their item. So far so good, now lets name some entities before we proceed and things get complicated. The big seller from whom you buy stock is called as Vendor, the people who come to your shop to buy things are known as customers, the stock in your shop is known as inventory.

So far we have identified few entities that play an active role in your day-to-day operations. As time goes by, your business expands and now you take orders over the phone and provide service to deliver the items to your customers, so you hire people to help you out in maintaining the inventory, do the delivery part and all the necessary stuff to keep the business running smoothly. The people you hire are known as employees.

So in this small shop, you typically manage the bookkeeping activities by hand using a notepad or something similar. Now imagine the same setup on a larger scale where you have more than 10,000 customers, have more than 1000 vendors, have more than 1000 employees and have a huge warehouse to maintain your inventory. Do you think you can manage all that information using pen and paper? Absolutely no way! Your business will come to a sudden stop sign.

To facilitate big businesses, companies like Oracle Corporation have created huge software known in the category of ERP (Enterprise Resource Planning) as Oracle Applications. Now coming to think of it, Oracle Apps is not one huge software, instead it is a collection of software known as modules that are integrated and talk to each other.

Now what is meant by integrated? First let us identify the modules by entities. For e.g Purchasing and Account Payables deal with the vendors since you typically purchase from vendors and eventually have to pay the dues. Oracle Purchasing handles all the requisitions and purchase orders to the vendors whereas Oracle Accounts Payables handles all the payments to the vendors.

Similarly Oracle Inventory deals with the items you maintain in stock, warehouse etc. Dealing with customers is handled collectively with the help of Oracle Receivables and Oracle Order Management. Order Management helps you collect all the information that your customer is ordering over the phone or web store etc. whereas Receivables help you collect the money for the orders that are delivered to the customers.

Now who maintains the paychecks, benefits of the 1000 employees? right! it is managed by Oracle Human Resources. So you get the idea by now that for each logical function there is a separate module that helps to execute and maintain that function.

So all the individual functions are being taken care but how do I know if I am making profit or loss? That's where integration comes into play. There is another module known as Oracle General Ledger. This module receives information from all the different transaction modules and summarizes them in order to help you create profit and loss statements, reports for paying Taxes etc.

Just to simplify the explanation, when you pay your employees that payment is reported back to General Ledgers as cost i.e money going out, when you purchase inventory items the information is transferred to GL as money going out, and so is the case when you pay your vendors. Similarly when you receive items in your inventory it is transferred to GL as money coming in, when your customer sends payment it is transferred to GL as money coming in. So all the different transaction modules report to GL (General Ledger) as either "money going in" or "money going out", the net result will tell you if you are making a profit or loss.

All the equipment, shops, warehouses, computers can be termed as Assets and they are managed by Oracle Fixed Assets. Initially Oracle Applications started as bunch of modules and as time passed by they added new modules for different and new functions growing out of the need for today's internet world.

So if you come across a module that you are trying to learn and work on, first try to understand what business need is it trying to fulfill and then try to understand what the immediate modules that it interacts with. For e.g lets say you come across Oracle Cost Management module, you will learn that it helps to maintain the costs of items in your inventory and the immediate modules that it interacts with are Oracle Inventory (of course), Oracle Bills of Material, Order Management and so on..

What is General Ledger
Most people are familiar with their own bank statement, which shows an opening balance, transactions that occurred throughout the period, and a closing balance. That statement is a snapshot of your account at a particular point in time. A company keeps an account, like the records the bank keeps of your bank account, for every organization or customer that the company does business with.

Balance Sheet
The balance sheet summarizes accounts and financial activities in three broad categories: assets, which represent all the things that the company owns; liabilities, which show how much money the company owes to others; and capital/retained earnings, which show the total cash invested in the business by the owners or shareholders.

Income Statement
In addition, accounts are kept for all the revenues and expenses of the company. These accounts are summarized in an income statement, also called a profit and loss statement, which represents the performance of a company over time.

The first step in capturing your transactions is to set up your chart of accounts. Your chart of accounts determines how your accounting information is collected, categorized, and stored for reporting purposes. In Oracle Financials, all accounts are identified by a unique Accounting key Flex field combination, which is your chart of accounts structure. You assign each account the qualifier of asset, liability, owner's equity, revenue, or expense.

Periods are identified by names such as FEB-2000 or WEEK1 2-98 and represent non-overlapping consecutive date ranges. FEB-2000 would include the date ranges O1-FEB-2000 to 29-FEB-2000 and would be followed by MAR-2000 starting on 01 -MAR-2000. You choose the names, following whatever convention you devise, and you assign the date ranges. You can even set up a one-day period for year-end adjustments that begins and ends on the same day.

Double-Entry Accounting
Double-entry accounting requires constant symmetry; total debits must equal total credits. Every accounting transaction results in one or more debits and credits that always remain in balance. For example, a $5000 purchase of office equipment would result in an increase to the asset account as well as an increase to a liability account.
In Oracle Financials, the account number is referred to as the Accounting Flexfield, which is used throughout all of Oracle Applications whenever a transaction is entered into the system. The Accounting Flexfield consists of multiple segments, such as those for company, cost center, and account. One full Accounting Flexfield is called a combination. Each journal entry line is tagged with an Accounting Flexfield combination. For expense transactions, the AFF usually identifies who incurred the cost (for example, which company or department) and what the cost was for (for example, travel expense). If you want more detailed information, such as which region, cost center, and product incurred the cost, you can design your AFF structure to include that information as well. Because total debits must always equal total credits in every transaction, Oracle General Ledger requires that all journals balance. If you try to enter an unbalanced journal, Oracle General Ledger will either reject the transaction or force the transaction to balance by posting the difference to a suspense account.

This is a useful alphabetical list covering most of the Oracle e-Business Suite products.
There must be quite a number of products still in research and development and some will never get to see the light out of the development labs.

Oracle Product Codes
1.           ABM - Activity Based Management
2.           AD - Applications DBA
3.           AHL - Oracle Advanced Service Online
4.           AHM - Oracle Hosting Manager
5.           AK - Oracle Common Modules-AK
6.           ALR - Oracle Alert
7.           AMF - Oracle Fulfillment Services
8.           AMS - Oracle Marketing
9.           AMV - Oracle MarketView
10.       AN - Oracle Sales Analysis
11.       AP - Oracle Payables
12.       AR - Oracle Receivables
13.       AS - Oracle Sales
14.       ASF - Oracle Field Sales
15.       ASG - Oracle CRM Gateway for Mobile Services
16.       ASL - Oracle Mobile Field Sales Laptop
17.       ASO - Oracle Order Capture
18.       ASP - Oracle Field Sales/PalmTM Devices
19.       AST - TeleSales
20.       AU - Application Utilities
21.       AX - Global Accounting Engine
22.       AZ - Application Implementation
23.       BEN - Oracle Advanced Benefits
24.       BIC - Customer Intelligence
25.       BIL - Sales Intelligence
26.       BIM - Marketing Intelligence
27.       BIS - Oracle Applications BIS
28.       BIV - Oracle Service Intelligence
29.       BIX - Call Center Intelligence
30.       BNE - Oracle Web ADI
31.       BOM - Oracle Bills of Material
32.       BSC - Balanced Scorecard
33.       CCT - Oracle Call Center and Telephony
34.       CE - Oracle Cash Management
35.       CHV - Oracle Supplier Scheduling
36.       CLN - Supply Chain Trading Connector for RosettaNet
37.       CN - Oracle Sales Compensation
38.       CRP - Oracle Capacity
39.       CS - Oracle Service
40.       CSC - Customer Care
41.       CSD - Depot Repair
42.       CSE - Oracle Enterprise Install Base
43.       CSF - Field Service
44.       CSI - Install Base
45.       CSL - Oracle Field Service/Laptop
46.       CSM - Oracle Field Service Palm
47.       CSP - Oracle Spares Management
48.       CSR - Oracle Scheduler
49.       CSS - Support
50.       CST - Oracle Cost Management
51.       CUA - CRL Financials Assets
52.       CUE - Oracle Billing Connect
53.       CUF - CRL Financials
54.       CUG - Oracle Citizen Interaction Center
55.       CUI - Oracle Network Logistics Inventory
56.       CUN - Oracle Network Logistics NATS
57.       CUP - Oracle Network Logistics Purchasing
58.       CUS - CRL Supply Chain
59.       CZ - Oracle Configurator
60.       DDD - Oracle CADView-3D
61.       DOM - Oracle Document Management and Collaboration
62.       DT - Oracle DateTrack
63.       EAA - Oracle SEM Exchange
64.       EAM - Oracle Enterprise Asset Management
65.       EC - Oracle e-Commerce Gateway
66.       ECX - Oracle XML Gateway
67.       EDR - Oracle E Records
68.       EGO - Oracle Engineering Online
69.       ENG - Oracle Engineering
70.       ENI - Oracle Engineering Intelligence System
71.       EVM - Value Based Management
72.       FEM - Strategic Enterprise Management
73.       FF - Oracle Fast Formula
74.       FII - Financials Intelligence
75.       FLM - Oracle Flow Manufacturing
76.       FND - Application Object Library
77.       FPT - Oracle Banking Center
78.       FRM - Oracle Report Manager
79.       FTE - Oracle Transportation Hub
80.       FV - Oracle Federal Financials
81.       GHR - Oracle Federal HR
82.       GL - Oracle General Ledger
83.       GMA - Oracle Process Manufacturing Systems
84.       GMD - Oracle Process Manufacturing Product Development
85.       GME - Oracle Process Manufacturing Process Execution
86.       GMF - Oracle Process Manufacturing Financials
87.       GMI - Oracle Process Manufacturing Inventory
88.       GML - Oracle Process Manufacturing Logistics
89.       GMP - Oracle Process Manufacturing Process Planning
90.       GMS - Oracle Grants Accounting
91.       GR - Oracle Process Regulatory Mgmt
92.       HRI - Human Resources Intelligence
93.       HXC - Oracle Time and Labor
94.       HXT - Oracle Time and Labor Rules
95.       IBA - iMarketing
96.       IBC - Oracle iContent
97.       IBE - iStore
98.       IBP - Bill Presentment & Payment
99.       IBU - iSupport
100.   IBY - iPayment
101.   ICX - Oracle Self-Service Web Applications
102.   IEB - Oracle Interaction Blending
103.   IEC - Oracle Campaign Plus
104.   IEM - Oracle eMail Center
105.   IEO - Call Center Technology
106.   IES - Scripting
107.   IEU - Oracle Universal Work Queue
108.   IEX - Oracle Collections
109.   IGC - Commitment Administration
110.   IGF - Student Systems Fin Aid
111.   IGI - Oracle International Public Sector Financials
112.   IGS - Oracle Student Sytems
113.   IGW - Oracle Grants Proposal
114.   IMC - Oracle Customers Online
115.   IMT - Oracle iMeeting
116.   INV - Oracle Inventory
117.   IPA - CRL Financials Projects
118.   IPD - Oracle Product Development Exchange
119.   ISC - Supply Chain Intelligence
120.   ITG - Oracle Internet Procurement Enterprise Connector
121.   JA - Asia/Pacific Localizations
122.   JE - European Localizations
123.   JG - Regional Localizations
124.   JL - Latin America Localizations
125.   JTF - CRM Foundation
126.   JTM - Oracle CRM Mobile Foundation
127.   JTS - Oracle CRM Self Service Administration
128.   ME - Maintenance, Repair & Overhaul
129.   MFG - Oracle Manufacturing
130.   MRP - Oracle Master Scheduling/MRP
131.   MSC - Oracle Advanced Supply Chain Planning
132.   MSD - Oracle Demand Planning
133.   MSO - Oracle Constraint Based Optimization
134.   MSR - Oracle Risk Optimization
135.   MWA - Mobile Applications
136.   ODQ - Oracle Data Query
137.   OE - Oracle Order Entry
138.   OFA - Oracle Assets
139.   OKB - Oracle Contracts for Subscriptions
140.   OKC - Oracle Contracts Core
141.   OKE - Oracle Project Contracts
142.   OKI - Oracle Contracts Intelligence
143.   OKL - Oracle Lease Management
144.   OKO - Oracle Contracts for Sales
145.   OKR - Oracle Contracts for Rights
146.   OKS - Oracle Contracts Service Module
147.   OKX - Oracle Contracts Integration
148.   ONT - Oracle Order Management
149.   OPI - Operations Intelligence
150.   OTA - Oracle Training Administration
151.   OZF - Funds & Budgets
152.   OZP - Trade Planning
153.   OZS - Oracle iClaims
154.   PA - Oracle Projects
155.   PAY - Oracle Payroll
156.   PER - Oracle Human Resources
157.   PJI - Oracle Project Intelligence
158.   PJM - Oracle Project Manufacturing
159.   PMI - Process Mfg Intelligence
160.   PN - Oracle Property Manager
161.   PO - Oracle Purchasing
162.   POA - Purchasing Intelligence
163.   POM - Oracle Exchange
164.   PON - Oracle Sourcing
165.   POS - Internet Supplier Portal
166.   PQH - Oracle Public Sector HR
167.   PQP - Oracle Public Sector Payroll
168.   PRP - Oracle Proposals
169.   PSA - Public Sector Applications
170.   PSB - Oracle Public Sector Budgeting
171.   PSP - Oracle Labor Distribution
172.   PV - Partner Relationship Management
173.   QA - Oracle Quality
174.   QOT - Oracle Quoting
175.   QP - Oracle Pricing
176.   QRM - Oracle Risk Management
177.   RG - Application Report Generator
178.   RHX - Oracle Advanced Planning Foundation
179.   RLA - Oracle Release Management Integration Kit
180.   RLM - Oracle Release Management
181.   SHT - Applications Shared Technology
182.   SSP - Oracle SSP
183.   SYSADMIN - System Administration
184.   VEA - Oracle Automotive
185.   VEH - Oracle Automotive Integration Kit
186.   WIP - Oracle Work in Process
187.   WMS - Oracle Warehouse Management System
188.   WPS - Oracle Manufacturing Scheduling
189.   WSH - Oracle Shipping
190.   WSM - Shop Floor Management
191.   XDP - Oracle Provisioning
192.   XLA - Oracle Common Accounting Modules
193.   XNB - Oracle eBusiness Billing
194.   XNC - Oracle Sales for Communications
195.   XNI - Oracle Install Base Intelligence
196.   XNM - Marketing for Communications
197.   XNP - Oracle Number Portability
198.   XNS - Oracle Service for Communications
199.   XTR - Oracle Treasury
200.   ZFA - Oracle Financial Analyzer
201.   ZSA - Oracle Sales Analyze

What happens when you login to Apps?
Firstly and surely there is a URL for oracle applications that is structured possibly in below format, although it can vary from version of apps.

http://machinename:portnumber /oa_servlets/AppsLogin

When you join an Oracle Apps development team for an employer, you will first be given URL of the development environment.

In any Oracle Apps implementation project (assuming it has gone live), there are minimum of three environments, each with different URL's and different database instances.

These are:-
Development environment
Testing environment
Production environment

You will most probably, be given an url, username and password of the development environment.

What happens when you login
A. Your login gets authenticated against a table named fnd_user for your username and password. The screen below is where username and password defined. This screen is called user definition screen. Only system administrators have access to this screen.

B. As you can see above, this username xxpassi is attached to two responsibilities (this will be discussed in details in latter training lesson). It is this assignment to the responsibility that controls what a logged in person can do and can't do. In layman’s words, a responsibility is a group of functions an user is authorized to perform.;postID=7675004862888076520

C. When you successfully login you will see below screens.

This screen below will prompt you to change your password, to a value different than that assigned by System Administrator.;postID=7675004862888076520;postID=7675004862888076520

Click on either of the above Responsibility Names, will initiate Oracle Apps( Note: You might be prompted to install jinitiator…..just keep clicking OK…OK for all Jinitiator messages). Effectively, what I mean to say is that you do not need to download jinitiator from anywhere; Oracle will do this automatically (provided your DBA’s got this cofig’ed) for you during your first logon attempt from the PC. Once your jInitiator gets installed;postID=7675004862888076520;postID=7675004862888076520

Hurray, we have logged into apps.

Some notes on advanced info :
Oracle internally uses a login named GUEST with a password “oracle”, Some people regard this as a security threat, but it isn’t. Your DBA’s can change the “guest” password from its default value after installation.

Oracle uses a DB User account named applsyspub to which it first connects during validation of LOGIN. This user account has very restricted privileges and has access to below objects (primarily for authentication purposes):-


Nadeem Jafar said...

Good to find such nice blog giving information about What is Enterprise Resource Planning and its related services. Thanks.

Raju Ch said...

Thank you

Anonymous said...

Thank u for such a nice blog... please kèep posting.... (y)

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