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ERP and Oracle E-Business Suite Concepts

ERP Definition
ERP stands for Enterprise Resource Planning ERP is a comprehensive software package ERP systems typically include the following characteristics:
An integrated system that operates in real time (or next to real time), without relying on periodic updates. A common database, which supports all applications. A consistent look and feel throughout each module. Installation of the system without elaborate application/data integration by the Information Technology (IT) department

ERP Functional/Technical Components

Finance/Accounting Human Resources Manufacturing Supply Chain Management (SCM) Project Management Customer Relationship Management (CRM) Data Services Access Control (User and Role Management)

Generic ERP Tools

User Interface (Forms) Reports Database Web Server/ Applications Server (for Web Enabled/based ERPs)

ERP Features
Independent of Operating System Independent of Database System Process End-to-End business Information Modularity Integration between modules Interfacing capabilities with external file and business applications Integration with Online Analytical process systems (OLAP) Web based Support Multi-Currency transactions Open to Customization and Localization (Native country implementation

Commercial Full Fledged ERPs

Oracle E-Business Suite (from Oracle Corp) Peoplesoft (from Oracle Corp) JD Edwards (from Oracle Corp) SAP (from SAP Labs) Ramco Marshall (from Ramco Systems)

Industry/Vertical ERPs
Siebel CRM Reatek Hyperion Flex-Cube Tally Accounting Package Sage Accounting Package

Benefits of Oracle E-Business Suite

Available in 30 languages Supports multiple currencies Supports flexible management of business processes Has single database model for entire business data Supports statutory and customary local requirements Is built on open standards Collaborates with trading partners (customer, suppliers, dealers, wholesalers etc..)

Oracle E-business Suite Product Families

Important Modules in Product Families

Financials General Ledger Receivables Cash Management Fixed Assets Payables Sub Ledger Accounting HRMS HR Payroll Time and Labor Oracle Learning Management Advanced Benefits Manufacturing Process Manufacturing OPM Costing Process Execution Product Development E-Records OPM Quality Discrete Manufacturing Bills of Material Costing Quality Work in process Engineering

Important Modules in Product Families

Projects Project Costing Project Billing Project Manufacturing Project Resource Management Project Management CRM iStore Service Requests Contracts Teleservice Depot repair Field Service Administration System Administration Application Object Library Alerts Workflow

Important Modules in Product Families

Sales and Marketing Order Management Pricing Shipping Release management Procurement Purchasing iProcurement Sourcing iSupplier

Oracle E-business Architecture

Oracle E-Business Architecture

Desktop/Client tier: This tier provides the user interface. This tier could consist of a desktop computer, laptop or mobile devices like PDAs, and so on. This tier is mainly involved in capturing and displaying information to the user. Application tier: This tier is responsible for holding all the application logic. It supports and manages various Applications components, and is sometimes known as the middle tier. Database tier: This tier is responsible for storing and retrieving the application data. It supports and manages the Oracle database.

Shared Entities
Shared entities in R12 E-Business Suite enable one time definition of an object, and the use of that object across several modules/products/applications. Shared entities are owned by one module from the definition standpoint, but can be referenced where ever needed.

E-business Suite Shared Entities

AOL Shared Entities

Shared Entities Ownership

Set of Books Units of Measure Items Suppliers Customers Organizations Locations Sales Force Employees General ledger Inventory Inventory TCA TCA HR HR Sales and Marketing HR

Major Business Processes

Procure to Pay (P2P)

Procure to Pay (P2P)

Procure to Pay This business flow outlines how a company raises purchase orders for procurement of goods or service and then processes associated invoices for payment, transfer to GL and reconciliation with bank statements.

Order to Cash (O2C)

Order to Cash (O2C)

Order to Cash This business flow encompasses activities starting from order entry, checking/booking of the items in the inventory, shipping of goods, raising invoices, reconciling bank statements and transferring accounting entries to General Ledger.

People to Paycheck

People to Paycheck
People to Paycheck This business process encompasses activities related to calculation and generation of payroll payments to employees. This flow enables users to set up necessary payroll elements and methods for particular employees, perform payroll processing (standard periodic, supplementary, and one-offs for a single employee), pay employees by check or direct deposit, request various related reports, and perform costing and transfer of completed payroll data to the general ledger.

What Is Multi-Org?
Multi-Org is a server-side (applications and database) enhancement that enables multiple business units in an enterprise to use a single installation of Oracle Applications products while keeping transaction data separate and secure. The Multi-Org enhancement uses native database views to build a security layer on top of a single installation of Oracle Applications. In Oracle Applications Release 12, the following products support MultiOrg capabilities:
Cash Management Order Management, Shipping Execution and Release Management Payables Property Manager Projects Purchasing Receivables Sales Compensation Sales and Marketing Service

E-business Suite Multi-org Structure

Business Group Legal Entity1 Operating Unit1 Operating Unit2 Legal Entity2 Operating Unit3

E-business Suite Multi-org Structure

Legal Entity1 Operating Unit1 Inventory Org1 Operating Unit2 Inventory Org2

WIP Org1

E-Business Suite Modules Implementation by Modules

Multi-org Data Security Model

HR Organization Types
Business Group Legal Entity Operating Unit Inventory organization WIP organization

Organization Naming Conventions

Organization Naming Considerations Multi-Org naming conventions should be used to identify the Oracle Organizations Classification (for example, Set of Books, Operating Unit, Inventory Organization) and its unique characteristics like country or currency, location name, and usage. The following are general guidelines for creating Organization Names: Sets of Books where:
SOB_; is an operational book that obtains journal entries directly from a subledger system (for example, accounts payable, inventory). COB_; is a consolidation set of books. ROB_; is a reporting set of books when using the Multiple Reporting Currency (MRC) feature. Business Group: BG_ Human Resources Organization: HR_ Legal Entity: LE_ Operating Unit: OU_

Fundamentals of System Administration

Define New Application Login User

Assigning Responsibilities to Users

Tables for User and Responsibility Assignment


Responsibility Assignments to User

FND_USER_RESP_GROUPS Where FND stands for foundation. All the database tables of System Administration, Application object library, Alerts and Workflow modules start with FND_ prefix

Importance of Responsibilities

Components of Responsibility

Components of Responsibility (Defined)

Datagroup : Data group: A data group specifies the Oracle Application Menu : A menu specifies the forms that a responsibility can display and the functions it can access. Request Group : Collection of reports and programs that can be submitted thru a responsibility.

Define a New Responsibility

Function and Menu security

Function and Menu security

Use exclusion rules to configure a responsibility. You can exclude functions at any level.
When you exclude a menu item from a responsibility, all menus and functions that are nested in that menu are also excluded. When you exclude a function from a responsibility, all occurrences of that function throughout the responsibilitys menu structure are excluded.

A full access responsibility with a menu that includes all the functions in an application is predefined for each Oracle Applications product. Some applications may provide additional predefined responsibilities that include a smaller set of functions (that is, fewer forms and subfunctions). As a System Administrator, you can restrict the functionality a responsibility provides by defining rules to exclude specific functions or menus of functions. In fact, we recommend that you use exclusion rules to customize a responsibility in preference to constructing a new menu hierarchy for that responsibility. For example, suppose you want to customize a responsibility to restrict the functionality of a form included in that responsibility.

Profile Options
Profile options control the behavior/access levels for the different features and functionalities available from the Oracle Ebusiness suite.

Profile option setting levels

Site Application Responsibility User

Profile Option Execution Hierarchy

Request processing in Oracle Ebusiness Suite

Tasks in Oracle E-business suite are broadly categorized as online/immediate and offline/background processing tasks. For all the Report and program requests submitted thru the Standard Request Submission, the execution is handled by the background processing engine called Concurrent Manager Concurrent manager handles/executes multiple report/program processing requests by default in a first come-first serve basis.

R12 Oracle Database Model

Every Product/Module/Application uses a different schema. (GL for General ledger, AR for Receivables, AP for Payables) Tables, Views and Sequences in the product specific schema. All code objects (triggers, packages, procedures, functions) owned by Apps Schema. Public synonyms of tables, views and sequences of all the products owned by Apps schema All the Front end responsibilities access the R12 database thru Apps schema. Applsys schema holds the tables of Sysadmin, AOL, Alerts and Workflow modules. Applsyspub schema tracks the Application user sessions from the login time to the logout time. Every module/product has a two corresponding tablespaces one user tablespace and another index tablespace. The password of Applsys and Apps schema must always be same, else the important services/processes like Concurrent Managers etc will not function.

A flexfield is a Flexible Field which can capture varying length of information depending on the Organizations requirement. Types of Flexfields
Key Flexfield Descriptive Flexfield Range Flexfield

Descriptive Flexfield
Appears as short, unnamed text item in majority of forms in Oracle EBS responsibilities. By default, all the DFF items/fields would be disabled. DFF is used to capture additional business information that is unique to a business. All DFFs are enabled in the AOL Module/Application developer responsibility. All DFFs are owned by AOL module. DFF are accessed as Pop-up windows.

Descriptive Flexfield
DFF information is captured in ATTRIBUTE Prefixed columns. Oracle EBS provides from a minimum of 7 to a max of 45 attribute columns in majority of tables. DFF Implementation is optional. DFF data is not reported on the Standard reports of Oracle EBS reports. Reports must be customized to publish the output of DFF information. New/Additional DFFs can be registered with AOL module. DFF information cannot be shared across forms or modules.

Key Flexfield appear as normal text items with Labels/boilerplates in Oracle EBS forms. KFF implementation is mandatory. If a KFF is not implemented, certain processes, features, functionalities or set of integrations will not function properly. KFFs are also accessed as pop-up windows in the oracle EBS forms. KFFs information is stored in SEGMENT prefixed columns. All standard reports by default supports the reporting of KFF data. New/Additional KFFs can be registered with the AOL module. KFF information is shared across Forms/Modules.

Key Flexfields

Range Flexfield
Range Flexfield is automatically implemented once the corresponding KFF is implemented. Range based operations can be performed in the reports and forms using the Range flexfield, with the validation that higher range values must be equal to or greater than lower range of values.