Chapter 1

Introduction to
Oracle Applications

The Oracle Applications Advantage

Oracle Applications automate your entire enterprise with more than 35 integrated client/server
software modules for financial management, supply chain management, manufacturing, project
systems, human resources, and market management. Almost 3000 customers in 59 countries use
Oracle Applications today. These customers appreciate the support for more than 20 languages
and the robust capability for multiple tax and regulatory requirements, currencies, and business
practices required for global operations.
Todays intense competitive pressures require fast response. Unfortunately, most application
software cant keep up. Most systems take too long to install, and once installed take too long to
adapt to the ever-changing business processes vital to your competitive success. Oracle is
different Oracle Applications enable the continuous improvement of your business processes.
You install the software quickly, change it as needed, and always use the latest technology to
drive state-of-the-art business processes.
Applied Technology is the Key to Business Innovation
Why can Oracle achieve the goal of continuous improvement better than other vendors? Because
we build our applications, our tools, and our database in a coordinated approach. We build
all layers of the technology, so that we can offer application enhancements at each layer for the
most flexible and robust application solutions.
Can this technology really help you? After all, other vendors offer traditional business systems
without any technological advantage. Their general ledger packages, for example, may address
your basic accounting needs. But Oracle goes further extending our general ledger with
advanced multi-dimensional analytical tools so that you can drill down and better understand
any part of your business.
Similarly, any system can process invoices or other documents, but only Oracle offers advanced
multimedia technology that puts associated documents online and eliminates paperwork with
automatic workflow routing.
Another key benefit of advanced technology is scalability. Most systems can handle low
transaction rates and small numbers of users. But only Oracle processes the highest of transaction
rates across many sites, using our unique parallel database capabilities.
Oracle is the only applications vendor that builds the full stack of technology: applications, tools
and database. This lets us deliver the optimal application solutions.
Rich Functionality
Oracle Applications family of over 35 tightly integrated applications efficiently manage your
entire global enterprise. Oracles extensive use of customizable business rules and workflows lets
you exploit the rich functionality to streamline every aspect of your global business operations.
You can be confident that whatever new business processes emerge from your re-engineering
efforts, Oracle Applications provide the flexibility and control you need to successfully
implement them. And Oracles built-in adaptability ensures that your Oracle Applications
solution grows with you as you constantly evolve your business to maintain a competitive edge.

Oracle Financials Functional Overview

Flexibility Without Programming

Most application systems take too long to install. Once installed, they take too long to adapt to
your changing business needs. Oracle Applications have unprecedented flexibility so that our
customers typically implement in half the time and at half the cost of competitive systems. You
can rapidly reconfigure Oracle Applications as your business needs change with user-defined
business rules, workflow rules, screens, reports, and exception conditions to reflect your
improved business processes. You can even add user-defined fields without programming.
Avoid Version Lock With Upgradable Customizations
Not only are the changes easy to make, but they are automatically upgraded as you migrate to
new releases. Thats how you avoid the version lock, the exorbitant cost of upgrades, typical of
other application suites.
Interface Easily with Open Application Program Interfaces
Converting data and building interfaces are typically the most complex implementation tasks.
Oracle has built and published open interfaces that enable easy coexistence and integration with
legacy and third-party systems. We also publish our complete CASE model to our customers as
well as make available database gateways to most common data sources. As a result, you can
seamlessly integrate Oracle Applications with any application, built using any tool, running on
any database.
Develop Custom Applications Easily
For most customers, our packaged applications provide all the necessary functionality. Some
customers, however, have particular needs for which they want additional modules. Build your
extensions easily using Developer/2000 and Designer/2000 the industrys most widely used
client/ server toolset. We share our development standards so your custom modules will have
the same look and feel as the Oracle Applications. The CASE tools are so powerful that often you
can automatically generate all the forms, reports, and processing logic you need without
programming.
Assure Success With Integrated Implementation Method
Even with the best of software business systems, implementations are complex and require the
involvement of many people. Oracles Application Implementation Method (AIM) is an
integrated approach to help you plan and track all the phases of your implementation so you can
achieve the results you expect on time and on budget.
Implementing quickly isnt enoughyou need to implement a system that will make everyones
job more productive. Traditional application systems have poorly handled transactions that span
multiple people. Too much paper is involved, too many people touch these transactions, and too
much time is wasted. Oracles SmartClient architecture effectively automates transactions
involving not only people within your organization, but even those outside your enterprise.
The first step is to place all business information online. The second step is to use automated
workflows to route business information, such as purchasing approvals, schedule changes, and
hiring approvals, to the right people.

Introduction to Oracle Applications

Create a Paperless Office Using Integrated Multimedia

Using our media server technology, Oracle is the first applications vendor to let you place online
all business information in any format, including text, spreadsheet, image, audio, and even
networked video. Use these multimedia attachments to provide purchase order justifications
using Excel spreadsheets, train shop floor workers using networked videos, or provide easy
reference by keeping scanned invoice images online.
Use Workflow To Improve Enterprise-wide Efficiency
Once you capture all information online, Oracle Applications route business information via
automated workflows throughout your organization. The workflow server efficiently monitors
the progress and status of critical workflows using key performance metrics you set. The
workflow server uses flexible workflow rules, embedded in the Oracle7 server. So as your
business needs change, you can easily refine your workflow rules.
Oracle Applications even help you extend workflow automation beyond your enterprise. With
full support for electronic notifications, you can include any EDI, email, or Internet-enabled
customer, supplier, or business partner in your workflows.
Customizable User Interface Aids Learning and Use
Oracle provides a unique SmartClient architecture that partitions application logic between client
and server computers. By placing appropriate logic on the client computer, Oracles SmartClient
architecture provides a next-generation graphical user interface. An interface so customizable
that each user can tailor the set of fields and records displayed for a particular business entity, all
without programming. So intuitive that it minimizes the need for formal training. So businessflow oriented that it guides you effortlessly through the system with windows mapped to
complete business flows instead of discrete business functions.
Network Efficiency Enables Global Operation
Oracle is the only vendor to combine this quality user interface with low network traffic. The
network is typically the bottleneck in any client/server system, but Oracles efficient remote
procedure calls between the client and server computers create little network traffic. Thats why
you can run these systems across the far-flung offices of your international operations.
Scalable Architecture Supports the Largest of Businesses
Accompanying the network efficiency is server scalabilityyou can run as many users as you
need on an Oracle Applications system. Oracle Parallel Server technology as well as parallelism
at other layers of the architecture, including query processing, batch processing and application
module processing, ensure good performance even under high loads.

Oracle Financials Functional Overview

Data Warehouse Provides Comprehensive Business Analysis

Fast response to changing market conditions requires immediate information for informed
decision making. But most operational business systems are designed for transaction processing,
not for easy access to information. Thats why traditional reporting tools dont provide the highquality business information people need.
Oracle solves the problem of information access by providing an integrated data warehouse.
Oracle Applications Data Warehouse allows anyone to perform complete multi-dimensional
analysis of critical business information without affecting the performance of your operational
systems. Oracles complete multidimensional analysis provides more flexibility and better
performance than the traditional drill-down capabilities offered by other application vendors.
For example, after viewing sales revenue by region by product line, you can see sales revenue by
region over time in order to better understand seasonal fluctuations. You can drill down further
to analyze your sales revenue by region, by sales representative, over smaller periods of time.
Use Oracle Applications Data Warehouse to easily view just the data you want, exactly how you
want, for immediate analysis.
Business Agents Respond to Key Events
With so much information available, how do you choose the information to which you want to
pay attention? After all, everyone in your organization has a different view of which business
events require particular attention or action.
Oracle Business Agents let everyone set their own criteria for sifting through all this information
to assist in rapid response. For example, your salespeople may want priority notification of new
leads, your material planners may require low inventory warnings, and your purchasing agents
may need immediate notification if any invoices matched to their purchase orders are placed on
hold. Oracle Business Agents let you manage your business better as all your people can
proactively monitor their business operations and immediately respond to key business events.
Transform Business Operations With Applications for the Web
How can you change the way you do business to compete more effectively? Oracle Applications
for the Web let you exploit the World Wide Web to bring everyone onlineb o t h w i t h i n y o u r
o r g a n i z a t i o n a s w e l l a s b e y o n d y o u r o r g a n i z a t i o n . You can automate the business
operations that include your customers, suppliers, and business partners. For example, your
customers can use dynamically-generated, secure Oracle Applications web pages to browse
product catalogs, review price lists, and track the status of sales orders and invoice payments.
Oracles web-enabled business applications will dramatically reduce the administrative burden
on your finance departments while taking you to new levels of customer responsiveness
providing your trading partners with critical business information on demand, 24 hours a day,
seven days a week.
To further automate and improve business processes between you and your trading partners,
Oracles EDI Gateway lets you exploit a wide variety of electronic commerce technologies,
including electronic data interchange (EDI), electronic funds transfer (EFT), electronic mail, and
electronic fax.

Introduction to Oracle Applications

Business Processes
Oracle Applications for Finance
Asset
Management
Cash
Management

Financial
Planning

Oracle
Financials
Financial
Consolidation
& Analysis

Billing &
Cash Collection
Expenditure
Management

Todays finance and administration function faces three major challenges:

Increasingly complex global operations

Pressures to reduce operational overhead

The need to disseminate useful information throughout the organization for better decision
making.

Complete Global Systems

The corporate world demands sophisticated multi-currency accounting in a distributed global
environment. Oracle Applications support the business practices of over 1000 multinational
organizations.
Financial Planning
The heart of financial planning is the ability to analyze budget and actual amounts, yet
traditional finance systems have not provided robust budgeting capabilities. With Oracle General
Ledger and Oracle Financial Analyzer, you can perform powerful top-down, bottom-up, and
distributed budgeting and forecasting at both the corporate and departmental level.

Oracle Financials Functional Overview

Financial Analysis
Financial analysis requires information not only for executives, but also for a broader set of
people who want to make better decisions on a daily basis. With Oracle Financial Analyzer, all
authorized people in your organization can find the data they need, drill down as necessary, and
see the results in secondswithout waiting for MIS or even corporate accountings involvement.
The analysis can be as sophisticated as you want because our online analytical processing
(OLAP) tools support full multi-dimensional analysisfar surpassing conventional reporting
tools.
Financial Consolidation
Oracle Applications are flexible and easily accommodate the frequent changes commonplace in
organizations today. You can use the Account Hierarchy Editor, a powerful drag and drop tool,
to graphically restructure your organization. Whatever organization you set up, you can
automatically consolidate your different business entities, regardless of differences in currencies,
calendars, or charts of accounts.
Expenditure Management
Todays competitive world demands operational efficiency with strong management controls.
Tight integration between Oracle Purchasing, Oracle Payables and Oracle Assets eliminates
paperwork and redundant data entry, as all related data is automatically routed through the
system. Use automatic purchase order creation, automatic tax withholding, and automated
invoice and payment processing to improve your operational efficiency. Maintain management
controls through multi-level payment holds and 2-, 3-, or 4-way matching.
Billing and Cash Collection
The global marketplace demands support for multiple currencies, international tax methods, and
other global business practices. Oracle Receivables handles your global business requirements
including multinational payment methods, recording of local, regional, and federal taxes, and
issuing letters of credit. Within this framework, achieve significant automation with your billing
and cash collection processes. For example, process receipts automatically using Oracles lockbox
transmission, bills of exchange, or direct debit.
Cash Management
Oracle Cash Management is integrated with Oracle Receivables, Oracle Payables, and Oracle
General Ledger to provide a comprehensive solution for multi-national, multi-currency bank
reconciliation and cash management.
Asset Management
Maintain an accurate property and equipment inventory and ensure you always choose the best
accounting and tax strategies for your asset base using Oracle Assets. Reduce overall operating
expenses with careful administration of equipment leases.

Introduction to Oracle Applications

Oracle Applications for Projects

In todays increasingly service-driven economy, project accounting is the application that defines
profitability for many organizations. Many project companies even those that did not
previously track costs are using Oracle Projects to track project and business profitability.
Timely, accurate cost and revenue information allows managers to avoid costly delays and
overruns.

Project
Tracking
Cost
Collection

Cross Project
Analysis

Oracle
Projects
Revenue Accrual
and Billing

Personal Time
and Expense

Capitalization of
Project Costs

Project Tracking
Project managers need to manage projects from their vantage while financial analysts require the
details necessary to track profitability. Your project managers can use Oracle Projects to track
detailed costs, manage within budget, and stay on schedule while successfully achieving the
projects objectives. Use Oracle Projects to translate project details into financial transactions so
your financial analysts have the details they require. With Oracle Projects, you can organize and
monitor project activities with an unlimited work breakdown structure independent of your
general ledger chart of accounts.
Cost Collection
Most project systems provide very rigid cost collection methods, but Oracle Project Costing
provides a flexible system that lets you decide the amount of cost control appropriate for your
needs. You can input charges directly or import them via batch interfaces. Easily record supplier
transactions for projects in Oracle Purchasing and Oracle Payables. You can also collect
equipment usage and other charges with your existing cost collection mechanisms and interface
those to Oracle Project Costing. You have the ability not only to collect expenditures and
commitments incurred against project activities, but also to control which charges can be made
against a project.

Oracle Financials Functional Overview

Personal Time & Expense

Your mobile workforce needs to provide project tracking details while located at project sites.
Use Oracle Personal Time and Expense to charge employee time and expenses to projects while
on the road or in the office. Using mobile computing technology, employees who travel
frequently can enter data from a laptop in a disconnected mode, and later upload the data to the
production server.
This laptop time and expense entry provides the same flexibility for controlling project costs. To
prohibit incorrect or unauthorized charges, time and expense transactions are always validated
against criteria you define. Based on your business rules, you can specify whether submitted time
and expenses require further review and approval prior to processing.
Capitalization of Project Costs
You need the ability to easily manage all project related construction-in-process (CIP) costs and
expenses for capital projects. Oracle Project Costing integrates with Oracle Assets to eliminate
redundant data entry and ensure accuracy. You can easily adjust asset costs, even after
capitalization.
Revenue Accrual and Billing
Revenue recognition and invoicing in a sufficiently flexible manner to meet customers varying
needs is a typical challenge of every project business. With Oracle Project Billing, you have the
flexibility to accrue revenue according to your company policies based on time and material
bill rates, cost plus buildup, percent spent ratio, or any algorithm that you define. As your
policies change, you can easily change Oracle Project Billing without programming. You can
accrue revenue differently for different types of projects, divisions, and more. You can also bill
each project differently, even if the same client has multiple projects. Then easily manage cash
collection in Oracle Receivables.
Online Inquiries and Reporting
To ensure project profitability, you need immediate information for informed decision making.
Use Oracle Projects to analyze all project data at any point and make adjustments easily, while
maintaining a full audit trail. Drilldown capabilities provide source details of each transaction.
Each user can define a personal view of the project data using Oracles folder technology. While
many standard reports are available, managers can avoid reviewing pages of reports and instead
manage by exception. Managers, as well as all users, can use Oracle Business Agents to
automatically receive just the information they need when certain user-defined conditions exist.
Cross Project Analysis
Oracle goes one step further in solving the problem of information access by providing complete
multi-dimensional analysis of critical project information. Oracle Applications Data Warehouse
allows authorized users to find and analyze key project data, without assistance from accounting
or even MIS. Easily compare numbers across projects and compare actuals, commitments,
budgets and other measures across your organization.

Introduction to Oracle Applications

Oracle Applications for Supply Chain Management

Improving efficiency requires timely communications and streamlined operations across your
extended enterprisefrom customers to warehouses, distribution centers, manufacturing sites,
and suppliers. Oracles supply chain management modules include integrated multiple facility
planning and execution capabilities that streamline demand and supply management. Sales
channels place orders with distribution sites, which in turn can fulfill demand using multiple
supply alternatives. The system further automates your internal and outsourced supply functions
through complete EDI transaction support. Oracle Applications for Supply Chain Management
include:

Oracle Supply Chain Planning

Oracle Master Scheduling/MRP

Oracle Inventory

Oracle Supplier Scheduling

Oracle Purchasing

Oracle Payables

Oracle Order Entry

Oracle Product Configurator

Oracle Receivables

Oracle Service

Oracle Quality

Oracle Applications for Manufacturing

Leading companies are using Oracle Manufacturing to reduce cycle times, streamline operations,
and optimize their manufacturing processes using innovative methods. Oracle Applications for
Manufacturing include:

Oracle Engineering

Oracle Product Configurator

Oracle Bills of Material

Oracle Supply Chain Planning

Oracle Master Scheduling/MRP

Oracle Capacity

Oracle Inventory

Oracle Supplier Scheduling

Oracle Purchasing

Oracle Work in Process

Oracle Cost Management

Oracle Quality

Oracle GEMMS

10

Oracle Financials Functional Overview

Oracle Applications for Human Resources

Human resource costs typically represent the largest, single expense an organization faces, with
the workforce being the largest asset. To maintain your competitive edge, management of your
workforce must be as dynamic as the world in which you competea world with continuous
legislative, operational and environmental changes. With Oracle Human Resources, you can
maximize the potential of your workforce through effective recruitment, staffing, training,
compensation, and planning. Oracle Applications for Human Resources include:

Oracle Payroll

Oracle Human Resources

Oracle Training Administration

Oracle Sales Compensation

Oracle Applications for Market Management

An efficient sales and marketing force, accurate and timely market information, and the ability to
expand into new markets are key to maximizing market opportunities. Oracle Applications for
Market Management include:

Oracle Financial Analyzer

Oracle Applications Data Warehouse

Oracle Sales and Marketing

Oracle Sales Compensation

Oracle Applications for the Web

Introduction to Oracle Applications

11

Complete Business Solution

As a provider of global consulting, education, and support services, in addition to applications,
tools, and database technology, Oracle provides the most complete business solution available.
In addition to being the only application vendor to build the full stack of technology:
applications, tools, and databaseOracle also provides global consulting, education, and support
services to offer the most complete business solution available.
Experienced Consulting
With a highly trained staff of 7000 consultants around the world, Oracle Services has built a solid
track record for effective deployment of Oracle Applications across a wide range of industries
and platforms.
Flexible Education
Oracle Education is a seasoned training organization with more than 200 education centers
around the world. Oracle offers customized training alternatives with classroom, on-site classes
and seminars tailored to your unique requirements. Oracle also provides online education to help
you reduce your costs.
Comprehensive Support
Oracle Applications are backed by the round-the-clock resources of Oracles global support
organization. Oracle offers the most flexible and comprehensive support programs covering
multiple time zones and user environments. As a result, you get fast resolution of problems as
they arise and maximum value from your Oracle Applications investment.
Strategic Business Partners
Oracle Applications unparalleled openness allows many third-party software partners to tightly
integrate their products with Oracle Applications. This lets you choose best-of-breed extensions
tailored to your unique requirements.
Major service partners, including the Big 6 accounting firms and major systems integrators, are
trained in Oracle products and methodology. These partners together with Oracle provide the
broadest range of services available anywhere.

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Oracle Financials Functional Overview