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BASICS OF ORACLE E-BUSINESS SUITE R-12

Oracle EBS suite is a comprehensive set of enterprise wide business applications that runs entirely
on the internet. Here, you have the choice to either implement one module or the enterprise suite.
EBS helps an enterprise make smarter decisions with better information, share unified information
across the enterprise, reduce information technology expenses, and enable business to run more
efficiently.
- The new SWAN user interface in R12 greatly improves the look and feel of Oracle e-
business suite.
- The new user interface brings together some of the best UI concepts from a host of Oracle
applications.
- The new user interface is a sub-class of browser look and feel (BLAF) and replaces the
former look and feel.
- Oracle E-business suite is a fully integrated, comprehensive suite of business applications
for the enterprise.
- Oracle applications architecture is a framework for multi tiered, distributed computing that
supports Oracle application products.
INTERFACES:
- EBS applications are either forms-based or HTML-based. Forms-based applications are
optimized for processing a large volume of transactions. HTML based applications,
referred as self service applications are optimized for ease of first-time use. For example,
to enter a batch of journals, EBS provides a form based application and to submit an
expense report, EBS provides an HTML based application.
FIELD COLORS:
- Each block in Oracle EBS form contains fields you use to enter, view, update, or delete
information. A field prompt describes each field by telling you what kind of information
appears or what kind of information you can enter in the field. Fields are color based to
indicate their type.
White : it allows data entry (mostly optional)
Blue with black text : it indicates drilldown capability
Yellow : it requires data entry (Mandatory)
White with green text: it is display only (read only)
Blue : it indicates fields to use in query mode.


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BENEFITS OF EBS:
- EBS available in multiple languages.
- Supports multiple currencies.
- Supports flexible management of business process.
- Has a common data model.
- Supports statutory (Government), and customary local requirements.
- Built on open standards.
MAJOR ORACLE EBS PRODUCT FAMILIES:
- Oracle Financials (GL,AP,AR,FA,CM,TRESURY,LEASE MANAGEMENT,ETC).
- Oracle SCM (PO,INV,OM,SHIPPING, TRADE MANAGEMENT ETC).
- Oracle MFG (BOM, WIP, MRP, PRODUCTION SCHEDULING ETC).
- Oracle Procurement (PO, SOURCING, ADVANCED PRICING, IPROCUREMENT
ETC).
- Oracle Projects (PROJECT COSTING, PROJECT BILLING, PROJECT CONTRACTS
ETC).
- Oracle HRMS (HUMAN RESOURCES, SELF SERVICE HR, ADVANCED BENEFITS,
PAYROLL ETC).
MAJOR ORACLE EBS KEY BUSINESS FLOWS:
- Procure to pay : p2p cycle
- Order to cash : o2c cycle
- Demand to build : d2b cycle
- Inventory to fulfillment : i2f cycle
- Campaign to order : c2o cycle
- Contract to renewal : c2r cycle
- Benefits to payroll : b2p cycle
This is not the exhaustive list of flows, but these are the major flows in Oracle EBS.
ARCHITECTURE OF ORACLE APPLICATIONS R-12:
- The R12 technical architecture is a direct response to the business needs of the customer.
In support of business needs oracle developed four architectural modes for users that are
accessed and controlled through the personal home page or Portal.
- The basic technical architecture of oracle EBS is based on 3-Tier Architecture.
- A Tier is a logical grouping of services, spread across more than one physical machine.
EBS consists of three-tier architecture.
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- Desktop/Client tier: This provides the user interface that could comprise desktop
computers, laptops, PDAs or mobile devices. Its purpose is to capture or display
information to the user.
- Application tier: This tier also referred as middle-tier is responsible for holding the
application logic that supports and manages the various application components.
- Desktop tier: Supports and manages oracle database and is responsible for storing and
retrieving application data.
The connection between the application tier and database tier can operate successfully on wide
area network, because both tiers exchange a minimum amount of information.
SHARED ENTITIES IN ORACLE EBS:
- A shared entity in oracle EBS enables one time definition of an object and the use of that
particular object across several products. Ex: Define customers in AR and use them across
other modules or applications of Oracle EBS.
- Shared entities are owned by a single product for TABLE PURPOSE ONLY.

EXAMPLES OF SHARED ENTITES:
ENTITY DESCRIPTION OWNER
AOL APPLICATION
ADMINISTRATION
AOL

LEDGER ACCOUNTING
INFORMATION
GL
UNIT OF MEASURE METHOD OF
QUNTIFYING ITEM
INV
ITEMS RAW MATERIAL,
FINISHED GOODS,
OR SERVICES
INV
SUPPLIERS VENDORS WE BUY
FROM
PURCHASING
CUSTOMERS BUYERS OF THE
END PRODUCT
AR
SALES FORCE INDIVIDUALS
CREDITED WITH
SALES REVENUE
SALES
EMPLOYEES/LOCATION/ORGANIZATIONS PERSONNEL WHO
PERFORM
ASSIGNED
TASKS/BUSINESS
SITES/LOGICAL
UNITS
HRMS

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This is not an exhaustive list, just for learning and reference only.

BASICS OF SYSTEM ADMINISTRATOR:
- System administrator application is responsible for EBS security definitions, creating of
users and responsibilities, creating new menus and functions, and concurrent processing
etc.
- Responsibility is a level of authority which determines whether the user/responsibility
holder can access oracle applications, self service web applications or only mobile
applications.
- Responsibility Determines the application functions that a user or responsibility holder can
use, the reports and concurrent programs he/she can run, and the data that those reports and
concurrent programs can access.
COMPONENTS OF RESPONSIBILITY:
REQUIRED OR MANDATORY:
- Data group: A data group specifies the oracle application database accounts to which a
responsibilitys forms and concurrent programs connect.
- Menu: Determines the forms that a responsibility can display and the functions it can access
- Request Group(Optional): Determines the concurrent programs that a responsibility can
run.
First we create our own responsibilities Ex: IVAS PO, IVAS OM etc then we create a user EX:
IVAS and we assign all these responsibilities to the user.
PROFILES OR PROFILE OPTIONS:
System administrators control various profile options in oracle applications that determines how
the applications look, feel, and operate.
Profiles or profile options set the Security type of the Organization.
We can use profile options at different levels, setting a user profile affects application users across
one of the four different levels.
- Site level: applies to all users at an installation site.
- Application level: applies to all users of the specified application, ex, a profile option could
be set that applies to all the PO users. This profile level overrides the profile option set at
site level.
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- Responsibility level: applies to all users currently signed in under one responsibility. Ex: a
profile option can be set to all the GL users using GL supervisor responsibility. This profile
level overrides the site and application level profile options.
- User level: applies to individual users, identified by their application usernames, ex: a
profile option can be set that applies only to user IVAS. This level profile option overrides
all the above mentioned profile options. In Other words this is the highest level in terms of
profile options.

FUNDAMENTALS OF FLEXFILEDS:
A Flex field is a configurable field that opens in a window from a regular oracle applications.
Defining flex fields enables you to tailor oracle applications to your own business environment.
You can easily define flex fields to modify or extend oracle applications without programming.
Using flex fields you can:
- Structure certain identifiers required by oracle applications according to your own business
environment. Key Flex Field (to use GL its mandatory to define your Chart of Accounts
Structure).
- Collect and display additional information for your business as required. Descriptive flex
filed.
KFF DFF
Owned by one application, used by many Associated with tables in a specific application.
Required to set up, not always required to use Setup is optional
Supports intelligent keys no intelligence, stores additional information.
Identified by Segments Identified by attributes
Identifies entities, and drives reporting Capture additional information only.









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ORGANIZATION STRUCTURE IN ORACLE EBS:
Business Group: A business group is the highest level of the structure and does not have an
accounting impact. The business group determines which employees will be available to ledgers
and operating units related to that business group.
Ledger: A ledger is the highest level that impacts accounting. And all the financial transactions
takes place in a financial year will be posted to ledger and balance sheets are prepare in the ledger.
Legal Entity: A legal entity is a legal company where we prepare tax and fiscal reports.
Operating Unit: An operating unit is a major company, division, or operating hub, in other words
the exact place where the company/organizations OPERATIONS takes place. Ex: A
Manufacturing Unit.
Inventory Organization: An inventory organization typically handles goods, items, and other
operative items which are required for day to day operations; it can be a warehouse, service centre
or any other location which look after items or goods.


SAMPLE ORGANIZATION STRUCTURE:
- Business group does not have accounting impact.
- Legal Entities post to a ledger. Each organization classified as a legal entity must specify a
ledger to post accounting transactions. A legal entity can point to only one ledger, but a
ledger can have multiple legal entities.
- Operating units are part of Legal entity. Each organization classified as a operating unit
must reference a legal entity. An operating unit can point to only one legal entity, but a
legal entity can have multiple operating units.
- Inventory organizations are part of operating units. Any organization classified as inventory
organization must reference to an operating unit. An inventory organization points to only
one operating unit, but through standard functionality can be referenced by any operating
unit having the same ledger as the attached operating unit. Items are defined in the master
inventory organization and added to the appropriate child organizations. Any inventory
transactions are secured by the inventory organization.




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MULTIORG ACCESS CONTROL (MOAC):
This is the new feature in Oracle EBS R-12 applicable for using multiple operating units which out
changing or switching responsibilities.
MOAC applicable to all the applications/Modules of oracle which function on the basis of
operating units. Ex: Payables, Receivables, OM etc.

Overview of Oracle SCM:
- Supply chain Management or SCM of oracle EBS family is widely used application
package which contains many modules like OM, PO, INV, SHIPPING, ADVANCE
PRICING and many more.
- A typical supply chain management covers O2C cycle, which based on fulfilling customer
requirements like sales, services and support etc.
- Lets have a look at the typical order to cash cycle:
o We can book orders (OM) from a diverse sources like I stores (online store
applications), EDI, XML or data entry.
o After we enter orders in OM, the items (INVENTORY) on the order are validated in
oracle inventory.
o A price (ADVANCE PRICING) is calculated for the item using the pricing engine.
o The availability of the items (ATP RULES) are checked and reserved if necessary,
the items are then pick released and shipped to the customer.
o We can record the customers acceptance of the goods either before the items are
billed or after the billing takes place.
o Customer acceptance is optional and we can enable the customers acceptance
functionality using the system parameter enable fulfillment acceptance.
o We can then invoice the customer (ACCOUNTS RECEIVABLES) for the items
shipped, perform cash management and reconciliations.

So far we have came across the basic stuff of Oracle EBS, so let us begin with the complete flow in
the upcoming pages.
This Document is intended and prepared keeping the theoretical perspective of the students; this
Document will help you prepare for your interview sessions and a broad theoretical understanding
of the major SCM modules of oracle.
EITHER MODIFY YOUR DREAMS. OR MAGNIFY YOUR SKILLS..
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ORACLE PURCHASING:
Purchasing, procurement, supply chain, whatever you call, but this is how your company gets all
kinds of stuff. When this process is combined in an integrated enterprise resource planning (ERP)
package such as EBS suite, things can get complicated.
To uncomplicated these things, we must know the setups involved in each and every application
for ease of use.
Purchasing Flow:
REQUISITION:
Purchasing flow starts with REQUISITION. Requisition is a formal request for goods, items, or
services. Usually requisition is created and sends it to the purchasing department where the
concerned people may accept or reject the requisition.
Requisition is of 2 types:
Internal Requisition: If we need goods, items, or services inside the organization, say, someone is
in need of a welding machine for a time being from another department, may go for an internal
requisition.
Purchase Requisition: If we need goods, items, or service from outside, that is from suppliers or
vendors we create purchase requisition.
Requisition is created at three levels, that is HEADER, LINE, AND DISTRIBUTION LEVEL.
Requisitions are stored in po_requisition_headers_all table (requisition_header_id) is the primay
key.
Po_requisition_lines_all table contains the line level information. (requisition_line_id) is the
primary key.
Po_req_distributions_all table contains distribution information.
REQUEST FOR QUOTE:
After requisition is approved, purchasing department will ask for quotations from the approved
suppliers or vendors for price, availability, terms and conditions.
QUOTATIONS:
We receive quotations from the suppliers or vendors, and we do quote analysis, quote analysis is
the process of finding out the best quote which have certain parameters, like the vendor history, the
time he takes to deliver the goods, quality of the goods etc.
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PURCHASE ORDERS:
Now the best quote becomes the purchase order. Purchase order is a legal document which states
the terms and conditions of a particular purchase. Purchase is a liability to the buyer and Revenue
to the seller.
Purchase order is of 4 types:
Document Type Usage
Blanket Purchase Order Created when terms, such as payment terms,
and negotiated prices, and goods or services
are known, but specific delivery dates are not.
These can be either set up either for a specific
organization or as global agreements for all
organizations to access.
Contract Purchase Order Created when the terms and conditions of a
purchase are known, but specific goods and
services are not, when a line references a
contract purchase order, oracles advance
pricing feature can be used for complex pricing
schedules.
Planned Purchase Order Created for a long term agreement where the
items or services, terms, and at least a tentative
deliver schedule are known.
Standard Purchase Order One time purchase of goods or services.

Buyers: In EBS employees who set up as buyers only can create purchase orders, requisitions and
which proper access can approve both documents.
First create an employee in HRMS, Navigating to People>Enter and Maintain. Then add the
employee as a buyer in Purchasing application, Navigating to Setup>Personnel>Buyer.
Now add this buyer to the user using which we are accessing our Responsibilities in System
Administrator Navigating to Security>User>Define, Query our user and assign the employee
created as a buyer to the user at PERSON Column and save the record.





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PURCHASING OPTIONS (REQUIRED)
IMPORTANT TOPIC IN INTERVIEWS

Responsibility: Purchasing
Navigation: Setup>Organizations>Purchasing Options
Purchasing options are created to define defaults and controls for purchase orders and requisitions.
Many of these options can be overridden on individual documents. These are set up for each
individual operating unit separately, and you will be required to select the operating unit prior to
selecting the setups.
Field Name Control
Price Tolerance (%) Tolerances can be set for the amount that a
purchase order can exceed a requisition it was
created from. The % tolerance is the total
percent any one line on a purchase order can
exceed the price on the requisition line it was
created from. This only refers to overages not
shortages.
Enforce Price Tolerance (%) Prevents purchase orders from being approved
when the price tolerance is exceeded. Not
selecting this option will give the buyer a
warning but allow the purchase order to be
approved.
Price tolerance amount (in functional currency) Assigns a hard dollar limit, up to which a
purchase order line can exceed the associated
requisition line. Can either be assigned alone
or with the price tolerance (%) where the lower
of the two tolerances will be enforced.
Enforce price tolerance amount Prevents purchase orders from being approved
when the price tolerance amount is exceeded.
Not selecting this option will give the buyer a
warning but allow the purchase order to be
approved.
Enforce full lot quantity Used to determine how internal requisitions
will create lines for items under lot control.
None will allow any amount to be purchased,
automatic will default to the item rounding
factor set up on the item, and advisory will
suggest that the line be rounded to the item
rounding factor but allow the buyers to
override the suggestion.
Receipt close point Determines if a shipment is closed based on
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the inspection, delivery, or receipt of the item.
Cancel Requisition Determines how a requisition is handled when
the associated purchase order is canceled.
Always will cause both the purchase order and
the requisition to be canceled, ever will leave
the requisition open for later use or manual
cancellation, and optional will allow the buyer
to determine if the requisition should be
cancelled or not.
SBI buying company identifier Used with the self billing feature of EBS (pay
on receipt), a unique identifier for buying
company can be added to be part of the invoice
number generated during self-billing. This will
appear in the second segment of the self-billed
invoice number.
Gapless invoice numbering Determines if gapless sequence will be
generated for each self bill generated for a
unique combination of SBI buying company
identifier, selling company identifier (supplier)
and invoice type.
Output format Output format of the printed purchase order.
PDF cannot be modified, and text can be
modified after printing.
Max.attachment size When e-mailing purchase orders, the max size
in megabytes, and will be send as a Zipped
format.
e-mail attachment file name Can be used to overwrite the extension on the
attachment, such as .zip, to prevent the
attachments from being stopped by e-mail
filters.
Display disposition messages Determines if the instructors for disposal of a
item are displayed on the requisition. These
instructions would have been set up on the
item themselves.
Notify if blanket PO exists Notifies buyers when an active blanket
purchase order exists for an item entered on a
line of any documents.
Allow item description update While creating a new item, it is the item setting
that will determine if a specific item on a
purchasing document can have its description
updated.
Enforce buyer name Determines if buyers can create purchase
orders with only their names or are allowed to
change it to any qualified buyers name.
Enforce supplier hold Prevents purchase orders from being approved
if the supplier is on hold, as defined in the
supply base>supplier>invoice management
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widow.
RFQ required Prevents requisition from being created into
purchase order if a request for quote is not
received, this can be overridden on a
requisition line.

DOCUMETS DEFAULTS:
It is a region in the same form, (bottom), and defines how information can default onto a document
when it is being created.
FIELD NAME CONTROL
Requisition import group by Controls how requisitions are grouped and
combined when imported through the
requisition open interface, including,
requisitions created by WIP, MRP, OM and
INV. All or null will not group the requisitions,
available grouping fields are include buyer,
category, item, location and supplier.
Internal requisition order type Internal requisitions will be released and
imported in order management under the order
type identified here.
Internal requisition order source With only the selection of internal, it is the
source used to transfer internal requisition data
from purchasing to order management.
Receipt close tolerance (%) Controlling the closing point on documents in
purchasing is a major decision that can
increase or decrease a buyers workload. If
documents do not close automatically, then the
user will need to manually monitor and close
them, the receipt close tolerance tells EBS
when to close orders for receiving transactions.
When the receipts made against an order reach
within the tolerance percent of the quantity
order, they will close for receiving, but will
allow future receipts to be made against a
closed order. This can be overridden when
setting up individual items and purchase
orders.
Invoice close tolerance (%) Determines when EBS will close a purchase
order that has been matched to an invoice.
When the invoice matched to a purchase order
line is within the tolerance percent of the line
amount, the line will close for invoicing, but
will still allow future invoices to e matched the
line, this can be overridden when setting up
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individual items and purchase orders.
Quote warning delay Determines the number of days prior to the
expiration date on a quote that a warning will
be sent to the buyers.
Line type Determines the default line type for
requisitions, purchase orders, quotes, and
request for quote. Line types determine such
things as the basis for calculating price and
default category and pricing information.
Rate type Determines the default for where the exchange
rate is derived from when entering a foreign
currency document. Select from any rate type
defined in the system, including user, which
will require the person entering the document
to provide a rate.
Match approval level Determines how invoices are matched to
purchase orders, and when the orders are
closed.
A 2-way match compares both the quantities
and amounts of purchase orders to the
invoices.
A 3-way match adds a quantity invoiced
comparison to the quantities received.
A 4-way match includes the same criteria as a
3-way match but adds a quantity accepted
comparison to the quantity received.
Price break type For blanket purchase orders, determines if
price breaks are based on cumulative quantities
for all shipments, or only an individual release
(non-cumulative).
Price type Set the default for the type of pricing used in
the document. Additional price types can be
added in the purchasing lookup codes.
Setup>purchasing>lookup codes.
Minimum release amount Determines the minimum amounts for releases
on blanket, contract, and planned purchase
orders.

RECEIPT ACCOUNTING:
Receipt accounting controls how the system will handle accruals for both inventory and expense
items. While accruing inventory items is mandatory, creating accrual transactions for expense
items is optional. For either inventory or expense, accruals are recorded to reflect items that have
been received but not yet invoiced in payables. Accrue expense items can be set either to accrue
only un-invoiced items at period end, or with every receipt. Most commonly used is period end,
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which will create a reversing accrual in the general ledger, but at receipt can give a more accurate
expense picture on a daily basis when using daily business intelligence. Accrue inventory items is
always set to at receipt, where a clearing account is set up with each inventory receipt and relieved
when it is matched to an invoice.
Automatic offset method determines how the account number for the receiving inspection account
is created. When this option is set to NONE, the receiving inspection account from the destination
organization is used. BALANCING will cause the balancing segment of the receiving inspection
account to be the same as the balancing segment of the charge account that was transacted against
at time of delivery, whereas ACCOUNT will overlay the charge account for all segments of the
account string except for the natural account, which will come from the receiving inspection
account. Enter an account number for the EXPENSE AP ACCRUAL ACCOUNT, used to accrue
expense receipts.
DOCUMENT NUMBERING:
It determines if document numbering is automatic or manual, based on the requirements we can
make changes.















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RECEIVING OPTIONS:

IMPORTANT FOR INTERVIEWS:
Receiving options are used to default information on purchase orders for receipt of goods and
services. Many of the operations can be over ridden when purchase orders are created, or when
setting up specific suppliers or items. These defaults are specific to each inventory organization
and are required to be set up for the organization defined as the inventory organization assigned in
the financial options. Typically this is the item master organization.
Navigation> setup>organizations>receiving options.
FIELD NAME CONTROL
Enforce Ship-to Items are usually shipped according to the
ship-to location on the purchase order but
sometimes end up in another location. When
none is selected, there is no warning when a
user tries to receive the orders in to a different
location other than the ship to location. And
warning will notify the receiver that they are
different, but allow the transaction to proceed.
ASN control action Advance shipment notice, are generated when
product is shipped from a supplier, notifying
EBS with specific receiving and arrival
information that can be used to process the
receipt. These can be received electronically in
EBS. ASN control action determines if users
are notified when processing a receipt where
an ASN exists with a warning, a rejection that
will not allow the receipt without using the
ASN, or no notifications at all.
Receipt days early Number of days prior to the expected receipt
date on the purchase order that receipts can be
processed.
Receipt days late Determines the number of days after the
expected receipt date on the purchase order
that receipts can be processed.
Receipt date exceed-action Determines the action where receipt days early
and receipt days late are exceeded. None
allows the receipt, warning notifies the user
and still allows the transaction, and reject will
not allow the transaction to be processed if the
days have been exceeded.
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Over receipt tolerance (%) Determines what amounts over the purchase
order quantities that can be received against the
order.
Over receipt action When the quantity received is over the receipt
tolerance, no action can be taken, which will
allow the receipt without a warning, or a
warning to appear to the users, or the receipt to
be prevented altogether.
RMA receipt routing Receipts for Return Material Authorizations
have three options for how they are processed;
standard, which uses a receiving location prior
to delivering an item to its final location, direct
delivery, which performs these two steps in
one transaction, and inspection required, which
adds an inspection step into the receiving
process.
Receipt routing PO receipts have three options for how they are
processed; standard, which uses a receipt
location prior to delivering an item to its final
location, direct delivery, which performs these
two steps in one transaction, and inspection
required, which adds an inspection step into
the receiving process.
Allow substitute receipts Select this option to allow substitute receipts
based on items set up as related. (Items> Item
Relationships).
Allow unordered receipts When selected, allows receipts for items not on
purchase orders, which can later be matched to
a purchase order. This option can be
overridden on both items and suppliers.
Allow express transactions Determines if express receipts and deliveries
are allowed, where EBS will select all lines on
a specific order for the transaction, allowing
the user to override them if needed.
Allow cascade transactions Allows receipts and deliveries to be
automatically distributed over multiple
shipments and distributions based on the
quantity received.
Allow blind receiving EBS normally shows the quantities that are still
due and were ordered at time of receiving.
Blind receiving will hide this information,
making users enter the quantities from the
documentation received with the delivery.
Validate serial numbers on RMA receipts Restricts available serial numbers on an RMA
to the numbers originally shipped with the
order.
Receipt number generation Determines if receipt numbers are manually
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entered or generated by the system. Receipts
numbers must be unique with an inventory
organization.
Receipt number type Determines if receipts will be numeric or
alphanumeric. EBS can only automatically
generate numeric numbers, but alphanumeric
can be selected with automatic numbering to
allow interfaced receipts from other systems to
be alphanumeric.
Next receipt number When using automatic numbering, determines
the next number that will be assigned by EBS.
Validate lot on RMA receipts Restricts available lot numbers on RMS to the
numbers originally shipped on the order.

ACCOUNTING OPTIONS AVAILABLE WITH RECEIVING TRANSACTIONS:
Receiving Inventory Account is used when receipts are processed for all inventory purchase
orders. This account is debited when the item is received and credited or cleared when the items
are delivered into inventory location. This clearing transaction can be set up to happen
automatically when the RECEIPT ROUTING is set to direct.
Retroactive Price Adjustment Account is used when price adjustments are processed for items
that have already been received.
Clearing Account is used when an intercompany transaction is created for items received into one
organization but purchased from other.

COST FACTORS FOR RECEIPTS:
Interface to Advance Pricing used when the advanced pricing module is being used to calculate
cost factors.
Interface to Transportation Execution used when transportation cost are being calculated in
oracle transportation execution.





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FINANCIAL OPTIONS:
Financial options are used predominantly by payables but are required for purchasing to function.
Financial options determine default account numbers, purchase order and requisition defaults,
encumbrance options and employee defaults for expense reports.
Financial options need to be set up for each operating unit purchasing will be processed for. How
MOAC (multi org access control) is set up will determine whether the operating unit will default in
our will need to be selected when entering the screen.
We have total 5 tabs while defining financial options:
Accounting Tab: Default account numbers are assigned for transactions. LIABILITY,
PREPAYMENT, DISCOUNT TAKEN, PO RATE VARIANCE GAIN, PO RATE VARIANCE
LOSS, all are required, even if you are using purchasing as a stand-alone purchasing system
without integrating it with payables or GL.
FIELD REQUIRED/OPTIONAL USAGE
Liability Required Default liability account assigned
to new suppliers, which be
overridden on each supplier
record. This account can be used
as part of SLA setups, or another
account used altogether.
Prepayment Required Default prepayment account
assigned to suppliers, which can
be overridden on each supplier
record. This account would only
create accounting entries if
payment terms with discounts
were used, and the discount was
taken.
Bills payable Optional Default account for future dated
payments
Discount taken Required Account used for discounted
amounts when the discount
method is set to system account.
N>Payables
Manager>setup>options>payables
option.
Po rate variance gain Required Used to record rate gains for
inventory items where the
purchase order or receipt rates are
not the same as the invoice. The
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matching method (purchase order
or receipt) determines which
foreign currency rate is compared
to the invoice.
Po rate variance loss Required Used to record rate gains for
inventory items where the
purchase order or receipt rates are
not the same as the invoice. The
matching method determines
which foreign currency rate is
compared to the invoice.
Expense clearing Optional Used as a clearing account for
credit card transactions where the
company pays the credit card
directly but matches the payments
up to expense reports entered in
iexpnses.
Miscellaneous Optional Used for any miscellaneous
charges received in XML, either
via the XML gateway or i-
supplier. If this is not filled in,
miscellaneous charges will be
prorated against all the other lines
on the XML invoice.
Retainage Optional Account used to record
retainages, or conditionally
withheld payments. Usually
withheld from progress payments
on long-term r high-dollar
contracts.

Supplier-Purchasing Tab: information completed on this will create defaults for several key
supplier setups. Checking RFQ only site will cause all new suppliers to be valid only for request
for quotes, not purchase orders or invoices.
SHIP-TO LOCATION is the default shipping location for all new suppliers. This filed is not
mandatory and it may not be appropriate to have a default if you have more than one location used
by a majority of suppliers.
BILL-TO LOCATION is the default billing address that will appear on purchase orders when
creating suppliers.
INVENTORY ORGANIZATION is a required field even if you are not using inventories; it will
determine which items can be purchased from this organization only items that are set up in this
inventory organization can be purchased. Since this is a required field, you can set up a shell
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inventory organization under PAYABLES MANAGER>SETUP>ORGANIZATION and assign
the ORGANIZATION CLASSIFICATION as an inventory organization. Under the OTHER
button, you will need to add accounting information to link this inventory organization with the
ledger, legal entity and operating unit.
SHIP VIA can be populated if you have a preferred freight carrier that should default on purchase
orders. FOB or free on board are a group of terms that dictates specifics about a sale such as who
owns the product during shipping. The fob entered here will default on all purchase orders.
FREIGHT TERMS determine who is responsible paying the freight charges, and will default on
purchase orders when its populated.
Encumbrance Tab: Encumbrance account records accounting entries for both requisitions and
purchase orders, as opposed to waiting for the receipt or invoice against an order, where
accounting is typically performed and the liability recognized. Encumbrance accounting is often
used in U.S. Federal government accounting or in organizations where budgets strictly control
costs.
Tax Tab: Used exclusively with value added tax. (VAT). A member state can be added and is
used by payables to determine if the state is a member of the European Union. The VAT
registration number is the vat number for your organization and prints on some of the value added
tax reports.
Human Resources Tab: Used to default data when setting up employees in EBS. Employees can
be added to EBS to create a hierarchy for purchasing document approvals, invoice approvals, and
journal entry approvals. When HR is not completely implemented in EBS, in what is called a
shared install, there is a modified people window that allows accounting related information, such
as employee name, address, supervisor, and default distribution account, to be added and used by
purchasing and other sub ledgers.
A business group assigned here, so that the employees will all be registered in that group. When
organizations are created, at least one organization needs to be classified as a business group.
When HR is not fully implemented, an Operating unit can be setup as the default business group.
The EXPENSE REPORT ADDRESS for employees can be set to OFFICE OR HOME and will
determine which address on the personnel record will print on expense reports.
USE APPROVAL HIRARCHIES should be checked when an employees position hierarchy is
going to be used for approving purchasing documents, left unchecked, it will cause EBS to use the
supervisor hierarchies as opposed to positions. POSITION HIERARCHIES relates to the positions,
or jobs, an employee is assigned to, which may be different that the actual supervisor associated
with an employee.
Employee number can be assigned either automatically or manually, as determined with the
METHOD, and the NEXT AUTOMATIC NUMBER will be populated when automatic numbering
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is selected. This next number can be reset at any time, but ensure that it is reset to a number greater
than that the last number assigned to prevent problems when adding employees.
REQUISITION TEMPLATE:
N>SETUP>PURCHASING>REQUISITION TEMPLATE
Requisition templates can be defined and used with the supplier item catalog. The supplier item
catalog not only used to see where to purchase an item, but also to enter lines based on a
requisition using the catalog features. Most commonly, these templates are created to group like
items, such as computer equipment or supplies kept in a supply closet at a specific location.

USING THE SUPPLIER ITEM CATALOG TO CREATE REQUISITION LINES:
N>PURCHSING SUPERUSER>SUPPLIER ITEM CATALOG
Requisition template uses the supplier item catalog to quickly find, review, and selects items for
purchase. Using this feature will decrease data entry for the requestor and allow the requestor to
browse or shop from an existing catalog of items.
This catalog is an accumulation of purchasing information that exists in EBS. There are four tabs
on the supplier item catalog.
Negotiated sources: This tab displays long-term agreements that may exist with a supplier, such
as blanket purchase agreement, quotations, planned purchase orders, and global agreements.
Prior Purchases: Displays prior purchase orders and both scheduled and blanket releases to
display historical purchase information.
Sourcing Rules: Displays any sourcing rules set up to automate requisition creation for items that
are to be linked to purchase agreements or quotations from a supplier. Mostly used for specific
items are specifically sourced from a particular supplier.
Requisition Templates: Displays the templates that are set up for faster purchasing.






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REQUISITION DISTRIBUTIONS:

N>REQUISITIONS>REQUISITIONDISTRIBUTION BUTTON AT THE BOTTOM
OF THE FORM.
Distributions can be added to a requisition by clicking on the DISTRIBUTIONS button, assign
specific accounting or project related information to each line.
We have 2 tabs here.
Accounts: On the accounts tab of the distributions window the line NUM and QUANTITY will
default in from the line on the requisition but can be modified to create multiple distributions for
each line, splitting the accounting between more than one account. For expense requisitions, are a
type of accrual accounting where items are recorded when a commitment is made, such as a
requisition or purchase order as opposed to when the item is received (accrual accounting) or
invoiced (cash accounting).denoted by the DESTINATION TYPE on the preceding window, you
will need to add the CHARGE ACCOUNT. Depending on how your system is set up, this may
default in from an item or category if one was selected, the employee record, a project, or a
combination of these places. These defaults are controlled by the account generator.
Additional accounts that can be added on the distribution are the BUDGET, ACCRUAL, and
VARIANCE ACCOUNTS.
BUDGET ACCOUNT represents the accrual account set up for encumbrances and is only
populated when encumbrances are turned on. Encumbrances
ACCRUAL ACCOUNT is the AP ACCRUAL ACCOUNT set up in the purchasing options for
expense items, and on the inventory organization setups (remember the other accounts tab while
entering information?).
VARIANCE ACCOUNT used to record any invoice price variances that would exist for this line,
defaults from the organization parameters. (Setup>organization>inventory organization>inventory
information> other accounts tab.).
If you can notice at the bottom of the form all the account combinations will be displayed.
When adding tax to the requisition using e-business tax, you can add a RECOVERY RATE to
override any default amounts. The GL DATE, used only with encumbrances, will determine the
date that the encumbrance transaction will have in the GL. The RESERVED check box is only
applicable when budgetary controls are turned on. Budgetary controls will track requisitions,
purchase orders, invoices, and expenses recorded in inventory or the GL against the budgeted
amounts for a given account, they either warn the user or prevent any additional transactions when
the budgets are all used up. This feature is typically used when encumbrance accounting is turned
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on, but can also be used by itself; the TOOLS option on the toolbar allows funds to be checked,
reserved, and unreserved.
Project: if oracle project costing is installed, requisitions, purchase orders, and invoices can all be
charged to a specific project, causing them to interface to the projects sub ledger and record the
expenditure against the identified project.
APPROVING PURCHASING DOCUMENTS: (IMPORTANT FOR INTERVIEWS):
Purchasing documents all required approval prior to being processed. The approval process will be
a different in each organization, but EBS does require that approvals be set up. As mentioned,
employees and approvers, as part of the approval assignments and approval groups, must be set up
prior to entering purchasing documents. EBS uses three main seeded paths for purchasing
approvals.
Employee Hierarchy: Using employee hierarchy is pretty straight forward for approvals. EBS
will look at the employee designated as the requestor for the requisition or purchase order, find his
or her supervisor as set up on the EBS person record (setup>personal>employees), and determine
if that employee is authorized to approve the requisition given the document type, total amount,
destination account number, item and category, and location. If the supervisor has the authority to
approve, the requisition or purchase order is forwarded to him or her for approval. When the
document type is set OWNER CAN APPROVE (setup>purchasing>document types), EBS will
evaluate if the requestor or buyer has the authority to approve the documents, if not, EBS will
move on up the supervisor hierarchy to the next higher supervisor, checking the same criteria.
Position Hierarchy: it is slightly a different way of finding the person who is in line to approve
the documents, but it uses the exact same criteria as the employee hierarchy to determine if that
person is authorized to approve the purchase. For position hierarchies, EBS will look not at
persons supervisor, but instead at that persons position, and find the next position in the
hierarchy, for example if an employee is set up as a shop floor supervisor, and this position reports
to the shop floor manager, then EBS will send the requisition to the shop floor manager position.
Approval Management: EBS has a module called approvals management (AME) that can be set
up by using the employee or position hierarchy, or by creating its own unique hierarchy, as well by
referring to as a group of defined rules to route documents for approval. These rules can be as
simple as this, if the category on the order equals to computer equipment, send it to the CIO for
approval, or they can e as complicated as routing computer equipment purchases first to the
persons supervisor, then to the IT computer specialist for configuration approval, and then to the
CIO for final approval.
Determining the approval path EBS is using (READ IT THRICE VERY IMPORTANT):
There are two places you need to see how EBS is routing its purchasing documents for approval.
By default, EBS will use the supervisor hierarchy for approvals. If on the HUMAN RESOURCE
TAB of the FINANCIAL OPTIONS (setup>organizations>financial options), USE APPROVAL
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HIERARCHIES is checked, then position hierarchies will be used. To determine if approval
management is being called, you will need to look at the document types
(setup>purchasing>document types) for each individual document in question. AME is called for
the document when the APPROVAL TRANSACTION TYPE is populated.
APPROVING AND CONTROLLING REQUISITIONS:
As soon as u create an approval at the bottom right side of the form you can find a button called
Approve, just click on it, it will take you to the another form, which shows SUBMIT FOR
APPROVAL.
All requisitions can be seen in the requisition form with one of the following statuses; incomplete,
rejected, or returned.
Managing requisitions really falls into three buckets. First, there are requisitions still in the
requestors court, which have the status of incomplete, rejected, or returned. Once the requestor
submits the requisition for approval, it moves to the approvers bucket and the status becomes in
process, pending some type of an approval action the last bucket is approved requisitions that are
pending action by a buyer, usually creating a purchase order or rejecting it. In general, incomplete
or rejected requisition can remain as is in the system without affecting reports or other process. The
other statuses should be monitored on a regular basis and action taken as needed.
STATUS MEANING
Approved Requisition has been approved
In process Has been submitted for approval and is still
pending.
Incomplete Requisition has not yet been submitted for
approval.
Pre-approved Approver who has proper authority has
forwarded requisition to another person for
additional approvals
Rejected Approver rejected the requisition.
Requires re-approval Changes were made to an approved requisition,
requiring it to be reapproved.
Reserved Budgetary funds are reserved for the
requisition.
Returned Approved requisition is returned to requestor
by the buyer. Note that requisitions in this
status are still considered in MRP, as they are
approved. Cancelling the requisition will
remove it from MRP.
STATUS ACTION REQUIRED
Returned Returned requisitions need to be either rerouted
for approval after changes are made or
canceled.
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Approved Approved requisitions are ready to be added to
a purchase order. Running the buyers
requisitions that are waiting to be added to
purchase orders. These requisitions appear on
the auto create window and will affect such
processes as MRP and should be monitored
closely.
In process In process is a normal state for a requisition
and is really only a problem if the requisition
remains in process without approval for a long
period of time, often, an invalid workflow or
invalid approver is the cause of the problem.
Usually, they can be cancelled, sometimes,
when the workflow was deleted in error or
there is a problem with approvals, they will
need to be reset to incomplete with a sql script.
Pre approved A requisition in this status should be treated
the same as the in process status
Required re approval Requires that an approved requisition be
resubmitted for approval due to a change on
the document. These documents are managed
the same as any in process documents.
Reserved Requisitions that are in this status must be
forwarded on for approval or unreserved.
Available funds are reduced by the amount of
the requisition when it is in this status.

CREATING PURCHASE ORDER FROM REQUISITION:
A requisition is formally the act of asking for something to be obtained. A purchase order on the
other hand is a legally binding offer between the buyer and seller to obtain those goods or services.
Requisitions, in business, are internal documents used by multiple people in an organization to
obtain permission and submit a request to purchase. These are then sent to the purchasing
department, where there are sourced from different suppliers and grouped for purchasing.
In EBS, we can auto create a purchase order using an approved requisition, or else we can use the
standard purchase order form to create a PO.
Auto Create: Turning a document from a request to obtain legally binding documents begins with
finding the grouping the requisitions. This can be done in many different ways in the auto create
find window. A profile option affects the way auto create works after the document is created. PO:
Display the auto created document determines if the document is displayed once it is created.
Setting this to yes allow the buyers to review the purchase order and submit it for approval without
having to query up the document. Documents can be reassigned easily in the manager buyer
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workload from N>purchasing super user>management>manage buyer workload, where documents
can be found ad reassigned.
Requisition can be created for one operating unit at a time, and this is the only required field on the
form (N>purchasing super user>auto create). While an unapproved requisition cannot be turned
into a Purchase order, it can be used for RFQ.
Once the requisition have been queried up, you can auto create them into specific types of
documents, using a variety of methods and tools. Once the requisitions have been approved, they
are grouped by the buyer for purchasing or creating a request for quote, auto create helps assist you
with these tasks.
(N>purchasing super user>auto create), Action=it has two choices, Create and Add to. Create will
start a new document; Add to will add the selected requisition lines to an existing document. Next,
it is the DOCUMENT TYPE that determines what document will be created. Documents include
Standard PO, Planned PO, and Blanket Release against an existing blanket purchase order, RFQ,
sourcing RFQ, or via an auction.
The last option is to determine how the requisition line will be grouped for review and selection on
the auto creates form. There are two options for how the lines are grouped on the form for selected.
First is DEFAULT, which groups all requisition lines by item, rev, line type, UOM, supplier item
umber, and transaction reason. REQUISITION is the other, which will create documents based on
the requisition number, not allowing line from multiple requisitions to be combined onto one
document.
(N>purchasing super user>auto create), there are two paths to follow when creating documents;
AUTOMATIC and MANUAL. To create a document automatically, select the requisition lines and
click AUTOMATIC. This will open either the new document form, if the ACTION was set to
CREATE, or an Add to document form, if it was set to ADD TO.
PURCHASING DOCUMENTS:
PURCHASE ORDER HEADERS: Header information on a purchase order is shared by the
entire order. If your responsibility has access to MOAC, then select the operating unit this order is
for, if not, it will default in. The purchase order number is either manually added or generated
automatically based on your setup of purchasing options. REV, which is maintained by the system,
refers to the revision of the order, or the number of times changes have been made to key
information it was approved. CREATED will be populated by the system with the date and time
the order was started.
TYPE represents the type of order that is being entered. Changing the type will affect what field
are shown and required.

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HEADER LEVEL INFORMATION ON A PO:
TYPE OF FIELD FIELD NAME
Header fields BUYER, SHIP-TO, BILL-TO
Supplier information CONTACT, CONFIRM, BRIEF NOTE TO
SUPPLIER, ACCEPTANCE REQUIRED,
ACCEPTANCE DUE DATE.
Purchase order terms PAYMENT TERMS, SHIP VIA, FOB,
FREIGHT TERMS
Line information UNIT PRICE, LINE NUMBER, ITEM, ITEM
REVISION, ITEM DESCRIPTION, ITEM
CATEGORY, QUNATITY, OR UNIT OF
MEASURE ETC.
Shipment and distributions Most updates in these areas will required re-
approval, with the acceptance of accounting
type information.

Lines Tab: Lines tab contain item specific information, NUM represents the each line in the
purchase order. EBS will allow you to select the first line number; it populates the rest of the lines
in order after that, allowing you to override the line number that is assigned. EBS can also default
this in on a purchase order that was created from a requisition in auto create if the system
profile option PO: Use Requisition line numbers on Auto created purchase order is set to
YES.
Type (N>SETUP>PURCHASING>LINE TYPES) is used to determine the type of product that
is being purchased. There are four main line types for creating purchase orders.
Amount: usually used when purchasing a service, allow only a quantity to be entered, which
becomes the amount.
Fixed Price: used to purchase either services or temporary labor, will allow the total amount or
amount to be entered on the order.
Quantity: allows a quantity, UOM, and a unit price to be entered on the Order.
Rate: is used with oracles service procurement modules. This is designated to handle the complex
purchasing requirements involved with services.
Price Reference Tab: For each line, the LIST PRICE and the MARKET PRICE will populate if
an item was entered, and the list price is populated on the item itself,; this can also be changed or
entered by the buyer. Both of these fields are used on the saving analysis reports EBS provides.
These reports assist the buyers in analyzing the savings on each purchase order between the list,
market and negotiated and actual costs.
28

Reference Documents Tab: For orders that are created from a contract or a source document, the
information relating to that document is found here. When an order is created against a specific
contract, the CONTRACT NUMBER, the OWNING ORG, and a check box to display if it is
GLOBAL are populated. For documents sourced from another document with sourcing rules or
from a quote, the DOCUMENT TYPE, number and LINE, ad SUPPLIER QUOTATION, as well
as the CONTRACT NUM and REV are displayed. Of these fields, only CONTRACT,
CONTRACT NUM, and REV can be entered by the Buyer.
More Tab: Similar to details tab on a requisition, the MORE tab allows the buyer to add UN
NUMBER information and HAZARD CODES. A NOTE TO SUPPLIER can also be added, which
can be displayed on a purchase order. This field is limited to 240 characters. The CAPITAL
EXPENSE box can be checked to show that this line is a capital item, but this check box is for
information only. A TRANSACTION NATURE can be added for the usage of the line, such as
consumption or fixed assets. This is a purchasing look up code, and more options can be added.
Agreements Tab: This tab is specifically for contract orders only; you can add specific
information like MINIMUM RELEASE AMOUNT, AMOUNT AGREED Etc.
Temporary Labor Tab: The final tab, temporary labor tab, is only available when the purchase
basis for the line is temporary labor. This allows the contractor information to be added, such as
FIRST and LAST NAME, as well as a START DATE and an END DATE.
SHIPMENT DETAILS: This tab on the PO form utilizes the setups which we have created in the
purchasing options of PO. For ex: match approval levels, tolerances etc.
CONTROLLING PURCHASING DOCUMENTS:
In reality, all purchasing documents are will always be needed, and they will close automatically
when the items are received and paid for. Reality requires a little bit of more care and feeding.
Purchasing documents have two general conditions that need to be monitored; orders that are
created and will never be delivered or invoiced, and orders that will not be used 100 percent and
need to be closed manually.
Cancelling Purchase Orders: Any purchasing document can be cancelled at any time. This
includes a document that has receipts associated with it. While there are valid business reasons
cancelling a PO that is received, be aware that the receiving transactions will not be available for
update or return to the supplier once the document is cancelled. More often it will be un-received
documents that are cancelled.
We can cancel a PO or a particular PO line navigating to Purchase orders>Purchase orders or
Purchase order Summary.
Price Changes on blanket agreements: An additional feature EBS provides is the ability to apply
pricing changes to the releases associated with the blanket agreement. The profile option PO:
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ALLOW RETROACTIVE PRICING OF POS control how this feature works. When this is set to
ALL RELEASES, every release against the blanket agreement can be updated, including releases
that already been received or invoiced.
Close Orders: Orders will self close when the invoice and receiving tolerances are met. The
requirement to close an order is that the lines all be closed for invoicing and receiving. One
common misunderstanding about EBS is that a closed order cannot have any additional receipts or
invoices matched to it, which is incorrect. To receive a closed order, ensure the INCLUDE CLOSE
POS check box is selected when finding expected receipts. Invoices can be matched to any POs
except those that are cancelled.
Orders can only be manually closed from the purchase order summer form, N>PURCHASE
ORDERS>PURCHASE ORDER SUMMARY. Find the order you want to control, and select
control from the tools menu. This will open the control document form, from here we can update
the purchase order with the below given actions.
ACTION DESCRIPTION
Cancel PO Cancels the entire PO, allowing no further actions on the order or any
associated receipts.
Close Po is closed and will not appear on reports.
Close for Invoicing Close the order of invoicing only.
Close for Receiving Close the order for receiving only.
Finally close FINAL IS FINAL. Once an order is finally closed, no additional
transactions can happen to the order or any of its associated
transactions. This cannot be undone via any standard functionality in
the applications, and it will lock up any pending or future transactions
that are attempted against the order.
Freeze Prevents any future modifications to the order but allows receipts and
invoices against it. This is removed by unfreezing the order.
Place on hold Placing an order on hold will not only un-approve it, but will also
prevent printing, receiving, invoicing, and re-approval until the hold is
removed by selecting RELEASE HOLD. At this time, the order will
require re-approval.
Open for invoicing This is only available when the order or line is closed for invoicing; it
allows it to be reopened.
Open for receiving This is only available when the order or line is closed for receiving. It
allows it to be reopened. As mentioned earlier, closed lines can still be
received, so this is more about reporting that the actual receipts.




30

TRACKING CHANGES TO PURCHASING DOCUMENTS:
When a change is made in purchasing document to key information that requires re-approval and
creates a new revision of the order, EBS tracks these changes. They can be seen in the PO change
History form. M>PURCHASE ORDERS>PURCHASE ORDERS>GO TO TOOLS MENU> PO
CHANGE HISTORY.
RECEIVING:
Receiving is typically thought of as an inventory function where items are received and credited
into inventory. In reality, it is a purchasing process against the purchase order, where the
destination determines whether the purchases are received into inventory and thus increase the
value, or only received against the order, creating a record for accruals and eventual payment.
Users can be notified of expected receipts, reminding them of outstanding receipts and providing a
quick link to receive a particular purchase order by running the workflow notification for the item
type PO confirm receipt. This reminder can be sent to their e-mail if the workflow notification
mailer is turned on in EBS, or as a notification with in EBS.
Receipts: N>RECEIVING>RECEIPTS:
When creating a receipt, EBS provides a large number of fields that can be used to find the
expected receipt, the most obvious being the PURCHSE ORDER or requisition number additional
fields, such as ITEM or CATEGORY, and DATE RANGES for when the receipt is expected, are
also available. Once the expected receipt is found, the actual receipt is performed in two steps; first
by creating a header for the receipt, and then by providing individual line information. The report
called EXPECTED RECEIPTS REPORT also allows purchasing and accounting to track
outstanding receipts.
Headers: Allow users to create a new receipt or add to an existing receipt, as well as add generic
information that will pertain to an entire receipt. EBS defaults the receipt to NEW RECEIPT, but
this setting can be changed by clicking ADD TO RECEIPT and entering a RECEIPT number when
prompted. This will not change the existing receipt but add additional lines to the transaction. The
RECEIPT DATE will default in to the current date and time but can be updated to any open
purchasing period and for items received into inventory and inventory period. This traditionally
represents the date the item is received in the organization, as opposed to the SHIPPED DATE,
which is recorded in the next field.
Lines: lines are used to record the actual receipt for each line on an order. Much of the information
will default in for the receiver, allowing him or her to make updates as required. The QUANTITY
will default in to the remaining amount due on the order, while actual amount on the order can be
found on the order information tab. When allow BLIND RECEIVING s checked in the receiving
options for the organization, then both of these fields will reflect zero, forcing the receiver to use
the hipping paperwork to enter the quantities.
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To receive a specific line, just use the check box on the left of the window, and enter the
QUANTITY received. Information about the receipt will default in from the purchase order,
including delivery information such as DESTINATION TYPE AND SUBINVENTORY. This
information can be accepted as is or updated to the proper receiving data.
Returns: Returns are processed almost exactly as the same way as receipts, using the returns
window instead N>RECEIVING>RETURS. Instead of finding the expected receipts, the system
find all previously processed receipts that meet the search criteria. The QUANTITY to return will
need to be entered, as well as where product is being RETURNED TO. This is the field where
most people make mistake. On inventory items, the user needs to select SUPPLIER to remove the
quantities from inventory, where as selecting RECEIVING will move the items back to the
receiving location, but the quantities will still remain in inventory for this location. An RMA
(return material authorization) NUMBER from the supplier can be entered for tracking purposes,
and when the supplier is set up for pay on receipt or (ERS, Evaluated Receipt Settlement),
checking CREATE DEBIT MEMO will automatically create the debit memo when the return is
processed.
Once the return is saved, EBS will create reversing accounting entries for the transaction when
create accounting is run.
UNDERSTANDING EBSS ACCRUAL PROCESS:
Purchasing has two types of accruals available for transactions that have been received but not yet
invoiced to record the organizations liability.
Perpetual Accruals are traditionally used with inventory items, where a liability is set up for
transactions when they are received, and is relieved when the invoice is matched to the receipt or
purchase order. These accruals are created as part of the receiving transaction and relieved with the
invoice transaction.
Reversing Accruals, traditionally used for expense items, can be created each month end as a
journal entry that is reversed on the first of the subsequent month. EBS does allow expense
accruals to also be created as perpetual accruals, but this option is rarely used and requires more
reconciliations.
CONTROLLING PURCHASING PERIODS: Purchasing periods, as in other modules, are
opened and closed each month. Periods should be closed after all the receipts are entered for the
period, and are accounted and sent to the GL with create accounting process.
Before start processing purchasing, make sure the corresponding GL and payables periods are open
or set to future entry.
Purchasing periods can be opened from N>SETUP>FINANCIALS>ACCOUNTING>CONTROL
PURCHASING PERIODS.
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SUPPLIERS
Technical Update to Suppliers: There are two major changes in the table structures for suppliers
that will affect custom reports, import data, and troubleshooting.
First, suppliers created from employee records no longer have the employee data duplicated in the
new supplier tables; instead, R12 maintains the data in the HR tables for security purposes. This is
for suppliers that are set up with the suppler type of employee, where the employee record is linked
to the supplier.
Second, in the payable schema, there are three new tables for suppliers; AP_SUPLIERS,
AP_SUPPLIER_SITES_ALL, and AP_SUPPLIER_CONTACTS. Their main purpose is to store
supplier specific information. The core supplier information exists in the HZ Schema in the
following tables.
HZ_PARTIES
HZ_PARTY_USG_ASSIGNMENTS
HZ_ORGANIZATIONS_PROFILES
The AP tables and HZ tables linked using the POS_SUPPLIER_MAPPINGS table. The final table
IBY_EXTERNAL_PAYEES_ALL, tracks specific payment information for each supplier. The old
tables for suppliers still exist as views.
Creating Suppliers: N: Payables Manager>Supplier>Entry>Suppliers or
Purchasing>Supplier Base>Suppliers
Supplier setups, used y payables, purchasing, assets, property manager, and I supplier portal,
determine how the suppliers and their addresses are going to be used, as well as storing specific
processing information. The supplier setup is broken down into multiple windows, which group the
setup information by what data or processes it controls. The supplier window can be accessed from
payables and from purchasing applications. Either navigation takes you to the same window.
Important Tabs: Banking Details:
Bank accounts need to be added to supplier records, to use with electronic funds transfer (EFT) of
wire payments. In R12, banks are share within a legal entity and no longer striped by operating
unit, but are grouped by country instead. Bank specific information, such as bank and branch
number, account number, and check digits, are regulated by many countries, and the country
groupings allow the formats of this information to be validated. In addition to the global access
operating units, bank accounts are now owned by the Cash management module (CE Tables).
When adding a bank account to a supplier, it can be set up for the suppliers bank itself, or for a
factors bank account. A factor is an entity or company that purchases the outstanding receivables
33

from your company at a discounted rate, in exchange for immediate working capital. When this
happens, the payment for the receivables may be sent directly to the factors bank account.
The data entered to create a factor or supplier bank account are the same, with one exception; when
entering a factor bank account, a PAYMENT FACTOR NAME is selected from the list of values
to show the actual supplier the payment is being made to.
While creating the new account for a supplier, for either an existing or new bank, ensure you save
the changes after clicking APPLY. The data is not committed to the database until it is saved.
(THIS CONCLUDES PO, IN THE OTHER DOCUMENT I WILL PROVIDE INTERVIEW
QUESTIONS).

ORDER MANAGEMENT
Complete Order to cash cycle steps including

1.Entering the Sales Order

2.Booking the Sales Order

3.Launch Pick Release

4.Ship Confirm

5.Create Invoice

6. Create the Receipts either manually or using Auto Lockbox ( In this article we will concentrate
on Manual creation)

7.Transfer to General Ledger

8.Journal Import

9. Posting
34

Overview:
The below are the steps in short that we will go through in this article:


Enter the Sales Order
Book the Sales Order
Launch Pick Release
Ship Confirm
Create Invoice
Create the Receipts either manually or using Auto Lockbox ( In this article we will
concentrate on Manual creation)
Transfer to General Ledger
Journal Import
Posting
Order management is a central repository for sales. You can get orders from various sources
including your customers, Interfaces etc.
You can manage your orders by restricting the organizations, your orders which can be viewed and
updated in.
With pricing and shipping execution integration, you can ensure that all the orders get progressed
to the place where exactly they meant to be, and all the terms and conditions associated with the
order fully met.



35

What is order to cash cycle?
A typical order to cash cycle is as follows:
- You can enter orders from diverse sources like istore, edi, xml or direct data entry.
- After you enter an order, the items on the order are validated in oracle inventory; a price is
calculated for the items using the pricing engine.
- The availability of the item will be checked and reserved if necessary.
- Items then are pick-released and shipped to the customer.
- You can record the customers acceptance of the goods either before the items are billed
after the billing takes place.
- Customer acceptance is optional and you can set it by using the system parameter enable
fulfillment acceptance.
- You can then invoice the customer for the items shipped, perform cash management and
reconciliations.
Integration: Oracle order management is closely integrated with the advance pricing, shipping
execution, configurator and release management products that are part of the order management
suite.

Order to cash cycle with standard items: N>sales orders>sales orders
- Enter the header information on sales order
- Enter the line information on sales order
- Procession constraints and default rules (explained in upcoming pages)
- The pricing engine
- View the workflow process for the order
- Check availability and book the order
- Pick release the order
- Ship confirm the order
- Use auto invoice to create an invoice.

1) The sales order window consists of two regions. Headers and Lines. The important header
information you would require to enter in the main tab; Customer name or number, order
types. Once you enter these values other values like ship-to, bill-to, shipping method,
pricing will default in the window.
Order numbers are generated (not defaulted) based on the order type. A document sequence
assigned to every order type so that a sales order number is generated. The value in the
operating unit field is defaulted from the responsibility that is associated to your user name.
The ware house assigned (others tab) defaults based on the operating unit.
36

2) Required fields for order lines are; ordered item and quantity, again, based on default rules
set ups in pricing, inventory and shipping, the other values would default on the sales order
line. If you have entered the item, UOM and item description will default. A standard item
is a finished good that is not assembled or configured item, a service or a component. Other
item types used in orders are; assemble to order models, ATO items, pick to order models
and kits. Please note that sales order window used for entering and processing returns too.
Returns are processed for standard items, configured items for ATO models and option
items for PTO models.

3) Processing constraints are a security framework where you can define rules in oracle order
management that validates back end operations such as create, update delete and cancel.
For example you might want to change the order type on the order header, however if your
order has a status of booked or lines have been entered for the order, processing constraints
prevent you from updating order type field.
Similarly you cannot perform a delete operation on an order line if it has a closed status if it
is ship confirmed or invoice interfaced. An error message will be displayed stating why you
cant perform the operation.
There are 3 types of processing constraints USER, EXTENSIBLE AND SYSTEM. You
cannot modify system processing constraints.
Process order API calls the processing constraints framework to validate the order entities
in case of create, update delete and cancel operations. In case of update and delete
operations process order API also checks for the values of dependent attributes and clears
them or sets them to missing value.
Defaulting rules Enable you to speed up data entry by passing values in the window based
on some key values you have entered. For example, in the order header, ship to address and
bill to address will default once you enter the customer name or number, similarly if you
enter an item number, description and UOM default on the order line.

4) Basic pricing is part of oracle order management and advance pricing is part of the order
management suite. The pricing engine is integrated with oracle order management process
and flows. The pricing engine consists of a search engine and a calculation engine.
When you enter an item on sales order line, the pricing engine is called and it calculates the
price on the order line after reading it from the pricelist associated with customer/order
type. The price list may contain some modifiers and quantifiers that may be applied to
the base price and the pricing engine calculates these before placing a final value in
the unit selling price field in the sales order.
A modifier such as discount, surcharge or special charge may be applied to the base price
and may alter the value of an item. You can apply a modifier at the list (order) level or the
line level.
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A qualifier helps you define who is eligible for price list or modifier. A qualifier can be a
customer name, a customer class, an order type or an order amount that can span orders.
Usually you setup a qualifier and associate it to a modifier or price list.
From the header or line, you can use Actions>View adjustments to see the details of
modifiers that were applied automatically by the pricing engine or to apply manual
discounts.

5) You can view the progress of the order using the TOOLS>WORKFLOW STATUS option.
This provides a visual representation of the state of the order while it progress through
different activities like booking, awaiting shipping, pending customer acceptance.
The workflow engine enables you to control the processing of various order types- quotes,
orders and lines, returns, sales agreements. Though seeded workflows are available with
oracle order management you can customize a flow to suit your particular business
requirements.

Some examples of commonly used flows.

- Order flow-Generic: this flow consist of two sub-processes, book order manual and close
order. You can use this flow to verify that order is booked and closed properly. This flow is
normally associated to a transaction type which is used to setup an order type in the sales
order window.
- Order flow- Generic with Header level invoice interface: when ALL of the lines of the
order are fulfilled, this flow ensures that the order is then ready to be progressed to invoice
interface.
- Line flow-Generic: when you save a line in the sales order window, this flow initiates to
ensure that an order line is properly entered, scheduled, shipped, fulfilled, invoiced and
closed. It performs these various activities mentioned using sub-processes like, enter-line,
schedule-line ,ship line-Manual, fulfill ,invoice interface-Line, close-Line.

6) The ATP functionality enables you to inform your customer when goods are available to
fulfill sales orders. The ATP quantity is calculated given the inputs of item, ordered
quantity, ordered quantity unit of measure and requested date.
Using these inputs and the quantity of the item in oracle inventory, the availability window
(ATP) displays the quantity in the warehouse as well as the total reservable quantity, so that
you can determine how much can be promised to the customer. The availability window
shows the date when the item will be available. Further, if the item is scarce supply,
substitute item information also displayed.



38

7) Based on the release criteria you specify, you can pick release order lines. The order lines
are pick released together on a trip, stop or delivery. With pick release you can move the
items from warehouse to the staging area, along with physically moving the items; you can
perform a move order transaction to record the stock movement in inventory.

You can pick release using one, two or three step process.
The one step process consist of selecting the auto allocate check box on the inventory tab
and the auto pick confirm box on the inventory tab when you pick release, which means
that the pick recommendation is automatically created and pick confirmed without any
manual intervention.

The two step process consist of selecting auto allocate, which creates a move order that is
automatically detailed. It enables you to view the pick recommendations and provides the
opportunity to change quantity, location and sub-inventory. You can report a missing
quantity at the pick confirmation step in the transact move orders window. Once you have
made your changes, you can transact the move order to pick confirm the inventory.

The three step process consists of selecting neither the auto allocates or auto pick confirm
check boxes. This creates a move order whose details you can enter manually or
automatically in the transact move orders widow. After the details are entered, you can
transact the move order to pick confirm the transaction.

You can pick release the order using the Shipping>release sales order window to do the
pick release online or using a concurrent program PICK SELECTION LIST
GENERATION.

8) When you need to confirm that your items have been shipped out of the inventory to the
customer as a delivery, use the ship confirm window. Perform Run Ship confirm to indicate
that the items are loaded on to the carrier from the staging location. When you run ship
confirm, the system decreases the inventory and updates the sales order line status. This
information is then transferred through auto invoice to oracle accounts receivables for
invoicing. Finally accounting information can be sent to the general ledger from oracle
inventory and oracle receivables.

9) Auto invoice is a concurrent program in oracle receivables that performs invoice processing
at both the order header and line levels. You can interface orders, returns and charges
information to receivables to create invoices, credit memos and credit on-accounts,
recognize revenue and manage sales credits. Once the order line is eligible for invoicing,
the invoice interface workflow activity interfaces the data into receivables. Oracle order
management inserts records into the following interface tables;

39

RA_INTERFACE_LINES
RA_INTERFACE_SALES_CREDITS

Please note that oracle order management does not use
RA_INTERFACE_DISTRIBUTIONS because all account code creation done by auto
invoice based on the auto accounting rules you have defined. For customer acceptance
AR_INTERFACE_CONTS_ALL is populated for all lines that have contingencies attached
to them. This information is interfaced to receivables for lines and discount lines.
Use the auto invoice concurrent program to create invoices for the processed orders. You
cannot use auto invoice to create invoices for the following items;
- Where the item attributes (inventory item creation window), invoice enabled or invoice-
able is set to NO; included item or internal order. If you do use auto invoice, the invoice
interface workflow activity is completed with a status of not eligible.

DROPSHIPMENTS:
Drop shipment is the integration of Order Management and purchasing, where the supplier directly
send the goods to the customer.
Drop shipment is a method of fulfilling sales orders by selling products without the order taker
handling, stocking, or delivering the item. The seller buys a product and the supplier directly sends
the product to the sellers customer. Drop shipments are used due to the following reasons:
- Customer requires an item that is not normally stocked.
- Customer requires a large quantity of the item which is not available with you.
- It is more economical when the supplier ships directly to the customer.
The seller receives a sales order from the customer and sends a purchase order to the supplier. The
supplier ships directly to your customer. The seller receives an invoice from the supplier and sends
an invoice to the customer.
Types of drop shipments:
1) Full Drop shipment: the seller sends the purchase order to the supplier for the full quantity
that the customer has ordered.
2) Normal shipment and partial drop shipment: if the seller has only part of the quantity
available for shipping to the customer, then the quantity is shipped. The user looks at the
availability for the order quantity by using the ATP checks and if the whole quantity is not
available, then the balance quantity can be fulfilled using the drop shipment process. A
purchase order will be created for the remaining quantity which the seller cannot fulfill.
3) Normal shipment and Full Drop shipment: The seller ships some goods from the
inventory and other goods always shipped from an external source (supplier).
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Drop shipments are created as sales orders in order management, indicated as drop shipments when
their source type is entered as external. The purchase release concurrent program or workflow in
order management creates rows in the requisition import tables in the purchasing module.
Purchasings requisition process creates requisitions. After the requisition has been approved, it
generates a purchase order. The source type is entered as supplier. The purchase order sent to the
supplier who sends the goods directly to your customer. The supplier notifies you that the goods
have been sent to your supplier via invoice, EDI document, or an Advance shipment notice (ASN).
Additionally when you receive confirmation of a drop shipment or the supplier invoice, you create
a receipt for it. This creates inbound and outbound material transaction in your system for
accounting purposes. Now you generate an invoice to send to your customer.
BACK TO BACK ORDERS:
The process of creating back to back orders involves the close linking of sales orders and purchase
orders. Back to back ordering is used as a replenish to order process for items that you stock in
inventory.
To create and use back to back orders, you need to ensure that the purchasing creation process is
automated, that you always have the latest status of the lines progress, and that you can peg (hard
reserve) quantities against the order, so that the items are not allocated to another customer.
The auto creation requisition process creates the requisition for the purchase order from the sales
order in purchasing. The requisition must be identified as CTO (customer sales order). The
purchase order then created automatically from the requisition and sent to the supplier. After the
supplier receives the purchase order, the items are recorded in inventory and a reservation is made
automatically against the sales order line. The sales order can then be picked shipped and invoiced.
SALES AGREEMENTS:
A sales agreement is a suppliers representation of an agreement with a customer for the supplier to
sell and the customer to buy goods and services. Usually the agreement is fulfilled by executing
multiple sales transactions over a period of time. The Sales agreement header includes the
following;
- The information that other order headers includes , customer, ship to , bill to etc.,
- Effective dates of the Sales Agreement.
- Payment and freight terms between the customer and supplier.
- Sales agreements minimum and maximum value.
- Control flag to determine whether you can exceeds the maximum value.
- Pricing information like standard price lists, sales agreement specific price lists.


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The Sales agreement line information includes the following:
- Items
- The minimum and maximum quantities agreed by the customer and supplier.
- Price including choice of price list.
- Effective dates
A sales agreement can start with either the negotiation phase or the fulfillment phase. If the sales
agreement starts with the negotiation phase, it will first follow the negotiation flow and then go
through the fulfillment flow.
The sales agreement is specified for a given time period, indicated by the effective dates on the
agreement. The product/item categories are also entered in the sales agreement. You can specify
the minimum and maximum quantities for the booked sales order. Additionally you can specify the
minimum and maximum amounts in value for the booked sales order.
You can set up a basic price list and also payment and freight terms for the Sales Agreement.
APPROVE SALES AGREEMENT:
You can setup sales agreement types that include or do not include an approval setup. Sales
agreement types are transaction types with a sales document type of sales agreement. The
commonly used seeded negotiation flows are; Negotiation Flow- Generic, Negotiation Flow-
Generic with approval and Negotiation flow- Simple. Once negotiation with the customer is
complete and all necessary sales agreement information has been entered, selecting submit will
launch the approval process and change the sales agreement status from draft to pending internal
approval if the sales agreement type has been set up with an approval step in the process. If the
sales agreement type does not include an approval step, submitting the sales agreement will
progress the Sales agreement to the status PENDING CUSTOMER ACCEPTANCE.
The sales agreement window contains the acceptance tab that records the customer acceptance
process. The customer and supplier information are entered here. Clicking customer acceptance
confirms that the sales agreement status changes to customer accepted.
SIMPLE NEGOTIATION WITH IN ORDER MANAGEMENT:
Negotiation cycle includes;
- Creating the draft quote or order
- Internal approval process
- Customer acceptance/rejection
- Conversion to sales order
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The sales order processing incorporates the negotiation phase. The negotiation phased stars when
a quote is saved. It captures all the steps in the process of negotiating a quote and converting it into
an order.
Order Management Profile Option Descriptions and Settings:
OM: Add Customer
ONT_ADD_CUSTOMER

This profile option determines which users who can access the Order
Management Add Customer window to enter customers, customer addresses,
and customer contact information. Select from:

All: Users can create new customers, customer addresses, and
Customer Contacts.

None: User cannot create new customers, customer addresses, and
customer contacts.

Address and Contact only: Users can access the Add Customer window to
create both new customer addresses and/or customer contacts for existing
customers only.
The default for this profile option is none.

Note: You cannot update existing customer information from the
Add Customer window. However, if the e-mail address field is
NULL for a customer and/or customer contact, you can update
these fields.

Note: Oracle Trading Community Architecture provides a model for managing information about
entities such as customers. The TCA Data Sharing and Security (DSS) feature allows you to
define rules around who can create, update or delete customer data.


OM: Add Customer (Order Import)

ONT_ADD_CUSTOMER_OI

This profile option determines which users can create new customers and
customer details when importing order using the Order Import concurrent
program. Select from:

All: Users can create new customers, customer addresses, and
customer contacts.

None: User cannot create new customers, customer addresses, and
customer contacts.

Address and Contact only: Users can access the Add Customer window to
43

create both new customer addresses and/or customer contacts for existing
customers only

The default for this profile option is none.

Note: Oracle Trading Community Architecture provides a model for managing information about
entities such as customers. The TCA Data Sharing and Security (DSS) feature allows you to define
rules around who can create, update or delete customer data.

OM: AutoSchedule

ONT_AUTOSCHEDULE

This profile option determines the default setting for autoscheduling orders,
and also controls the display of the Availability window within the Sales Order
Lines window. Please note that autoscheduling orders is only supported for
orders that contain standard line items, not models or kits.

Select from:

Yes: Order lines are scheduled automatically at the time of entry.
Automatically display the Availability window within the Sales Order
window when entering order line details.

No or NULL: Order lines are not scheduled automatically at the time of
entry. Does not automatically display the Availability window within the
Sales Order window when entering order line details.
Note: If the item or model is a standard item or has the item
ATP flag enabled, ATP inquiry will automatically be
performed on the item or model once it has been entered on
an order line and a user exits the item field.



The Line Generic workflow process sequences the line scheduling action to
occur after you book the order. However, even if you have set this profile
option to No and you indicate ship set or arrival set on an order line, the order
entry processing schedules the line and sets the Visible Demand Flag.

To group lines into ship sets and arrival sets, order entry processing uses the
warehouse, scheduled shipment date, ship to location, shipment priority, and
shipment method. Therefore, it schedules the order lines with ship set values to
obtain scheduled shipment date.

If you want the Line Generic workflow process to schedule an order line, you
cannot specify a ship set or arrival set for it.




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OM: Invoice Numbering Method

WSH_INVOICE_NUMBERING_METHOD

This profile option determines whether or not the Invoicing activity generates
invoice numbers based on the delivery name or automatically.

Select from:

Automatic: Choose this value if you want to create invoices with automatic
numbering. Transaction numbering is controlled automatically by the
Receivables AutoInvoice concurrent program. If you set the profile option
to this value, you must use an invoice source with automatic transaction
numbering.

Delivery Name: Choose this value if you want to create invoices for all
shippable lines based on Delivery Name. If you process order lines in a
delivery in more than one batch, then this function modifies the delivery
name with a number to create a unique transaction number.

If you set the profile option to this value, you must use an invoice source
without automatic transaction numbering.


Note: Delivery based invoicing is not supported if order lines within the delivery belong to
different operating units.

Note: In some cases, you will require both options to be enabled as you may have both
invoice source and non-delivery invoice source. Use the Transaction Type "Invoice Order"
to specify both. You are allowed to choose invoice source regardless of the setting of the
OM: Invoice Numbering Method, to allow for those users who have customizations around
invoice numbering.
45


OPERATING UNIT: In Order Management, the Operating Unit profile MO: Operating Unit
determines the operating unit the transaction gets created in. If you enable Multi-Org Access
Control, then you can specify the Operating Unit (from those that are accessible to you via your
MO: Security Profile) in the various transaction forms.

Setting OM System Parameters
Parameters in the Oracle Order Management Parameters window can be functionally grouped, and
you can define controls as easily as defining profile options. OM System Parameters allows you to
define new parameters and setting up the values for the parameters using different sources like
SQL and constant values.
Define QuickCodes
You can create QuickCodes for Order Management. QuickCode types that
you can define include:

Cancellation Codes

Credit Cards

Freight Terms

Hold Types

Note Usage Formats

Release Reasons

Sales Channels

Shipment Priorities

Cascading - line attributes that will be updated as a result of header changes

You can create as many quickcodes as you need. You can also disable
QuickCodes.

The Access Level toggles display whether you can define new Lookup Codes.
You can modify User and Extensible Lookup Codes, however, system code
cannot be modified. Contact your system administrator.
46


To define quickcodes:
1. Navigate to the Oracle Order Management Lookups window. Order
Management > Setup > QuickCodes > Order Management.


Order Management Lookups



2. Query the Lookup Code Type.

3. Enter the Access Level - User, Extensible, System.

4. Select the Application you want to use to define QuickCodes.

5. Enter a description of the code.

6. Enter the effective dates for the Lookup Code.

7. Check Enabled to activate the Lookup Code.

8. To inactivate the Lookup Code, deselect the Enabled box.

9. Save your work.


Define Document Sequences for Order Numbering:
Order Management uses AOL Document Sequence functionality for order numbering. You can
define document sequences that automatically generate numbers for your sales documents as you
enter them. You can define a single document sequence to assign unique consecutive numbers to
all your sales documents, or you can define multiple document sequences that are assigned to
47

different order types. In the latter case, an order or return is uniquely identified by its type and its
number, since sales documents of different types may share numbers. Sales document numbers
cannot contain alphabetic characters.
Gapless Order Number Source:
Many countries have legal and audit requirements for order numbers to be contiguous. You can
set up a document sequence as gapless through the Define Documents Sequences window. You
can set up a gapless sequence for quotes, sales orders and Sales Agreements. In addition, Order
Management prevents deletion of orders that have been numbered using the gapless numbering
sequence. The application uses locks to ensure gapless numbering. If you are using gapless
sequences, please save your changes frequently to minimize lock contention issues.

Note: Transactions may be gapless, however if all quotes do not become orders, the order numbers
will not appear gapless.
Manual Order Numbers:
Order Management enables you to enter the order numbers for certain types of orders. You can
define a document sequence as manual and assign it to a desired order type. This order type can
be used on orders that you want to manually enter order numbers. When an order number is
specified for such an order, Order Management validates that it is unique for a given order type.
Prerequisites:
Set the profile option Sequential Numbering to Always Used at the Order
Management Application level.
Set your document sequences to Automatic, Gapless, or Manual.

To define document sequences for order numbering:

1. Navigate to the Document Sequences window. Order Management >
Setup > Documents > Define.


Order Management Document Sequences Window




48


2. You can define the sequence to be Automatic, Gapless or Manual.


Automatic: The system automatically increment document numbers.
Automatic sequences do not guarantee contiguous numbering.

Gapless: The system guarantees that the numbers returned are contiguous.

Manual: The user must specify a unique document number.

For all types of numbering, Order Management validates that the number specified by you is
unique for a given order type.

3. Enter a name for the document sequence. Specify Oracle Order Management as the Application.
4. Enter a starting number.
5. Optionally, enter effective dates for the document sequence.
6. Save your work.

Important Note: When sales document Types are defined, a corresponding Document
Sequence Category will automatically be created for order types and not for line types.
The category created has the same name as the order type. You must navigate to the
AOL Assign Document Sequence window to assign a sequence to the newly created
category. If the Document Descriptive Flex-field is enabled, you need to specify the
governing ledger. The Document Method code should be left blank.

Define Order Import Sources:
You can define Order Import Sources from which to import order information. You can
import historical orders, orders from other quote or sales systems, and changes to orders.
Oracle Order Management recommends that you define a unique name for each source
of order information you are importing. When you run the Order Import program, you
can enter the source or sources for each execution. You can run Order Import for
multiple sources at one time.

Internal Sales Orders:
If you are importing internal sales orders from Oracle Purchasing, you need to define an Order
Import source to be used when you transfer the internal requisition information from Oracle
Purchasing to create an internal sales order in Order Management.

You need to choose an Order Import source for internal requisitions/internal sales orders when you
define purchasing options in Oracle Purchasing. You choose this same Order Import source as a
parameter when you run the Order Import program in Order Management.

Defining Processing Constraints:
Processing constraints are rules that control who can change what and when they can change it.
Processing constraints can prevent certain changes, but can also be set up to perform actions
based on those changes. They can define actions that can result from these changes, such as
requiring a reason for the change, triggering an action in Audit Trail or Versioning, or raising an
49

Integration Event. This is step twenty-four of the Order Management Setup Steps.

This section describes how to set up your processing constraints based on validation conditions
in validation templates (for example, Booked = Yes) which are evaluated for groups of records
(record sets).

Prerequisites: Become familiar with the Processing Constraints that are delivered with the Order
Management Application.

To set up processing constraints:

1. Navigate to the Define Processing Constraints window.


Order Management Processing Constraints Window




2. Query Application for Oracle Order Management and Entity for the entity for which you
want the processing constraint, for example, Order Header or Order Line.

3. Move to Constraints. In the top area of the region, enter each constraint in a line.

4. In Operation, select the operation that you want to constrain.

5. Select an Attribute to constraint, based upon the operation selected.

- If you select the value UPDATE for the Operation field and you do not select an
Attribute value, the constraint allows no update to any field of the entity, by any
user.



50

6. In User Action, select one of the following:

Not Allowed: You cannot perform the constrained operation

Require Reason and History: You can perform the operation only if you
enter a reason. Use this with Operation CANCEL, Operation UPDATE
if the constrained attribute is Ordered Quantity only, and for recording
Audit Trail history when requiring a reason for an attribute change.

Requires History: You can perform the operation and will not be
prompted to enter a Reason. You still have the option to enter both a
Reason and Comment, and if you do so, the information is recorded.
Use the value for enabling Audit Trail history to be recorded without a
reason for an attribute change.

7. Select a value for the System Changes field. The value selected in this field determines if
system changes are allowed, despite the constraint. Choose from:

Always: System changes allowed

Never after Insert: System changes allowed if the entry has not been
saved to the database


8. Select a value for the User Changes Field. Choose from:

Never: The user is always constrained

Never after Insert: The user is constrained after the entry is saved
to the database


9. The Enabled field indicates whether the current constraint is active. This allows constraints
to be temporarily disabled if necessary.

10. System check box - If a Constraint has the System check box selected, you cannot update
the constraint definition.

11. Move to the Conditions tab. Enter a constraining condition for the selected constraint. The
selected constraint is determined by the previous cursor position prior to moving to the
Conditions tab region.


12. In the Group Number field, enter a numeric value according to the following principles:

For conditions that should together evaluate to TRUE (AND
conditions), enter the same group number. The constraint applies if the
entity in question meets all of the conditions defined.

For conditions that should together evaluate to OR (OR conditions), enter
a different number for each record. The constraint applies if the entity in
question meets any one of the conditions defined.

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13. In Scope, if the record set applies to multiple records, indicate the scope of evaluation of the
record set for this condition. An example of a record set that applies to multiple records is the
record set of all of the lines of a sales order. Select one of the following:
Any: The condition is satisfied if one of the records meets it, for
example, the condition is satisfied if one of the sales order lines is
booked

All: The condition is satisfied if all of the records meet it, for
example, the condition is satisfied if all of the sales order lines are
booked


14. In Validation Entity, enter the entity for which the condition is validated. You can enter the
same entity as the constraint (at the top of the Constraints region) or you can enter an entity
related to the constraint. For example, if the constraint is against Order Header, Validation Entity
can be Order Line.

15. In Record Set, select the record set that corresponds to the entities to which the constraints
process should apply the condition. For example, if you enter the order line record set Line, the
condition is evaluated against the order line in question. If you enter the order line record set
Order, the condition is evaluated against any or all (depending on the scope) lines of the order in
question.

If Validation Entity is different from Entity (at the top of the form), you can only select record
sets based on the primary key of the validation entity.

16. Select the Not check box (the negative condition modifier) to direct the constraints
processing to evaluate the NOT condition of Validation Template. For example, if you expect to
select Validation Template Booked, selecting NOT creates the condition of not booked for the
constraint.

17. In Validation, select a validation template. This item specifies the condition being
evaluated.

18. Enabled- The Enabled field indicates whether the current constraint is active. This allows
constraints to be temporarily disabled if necessary.

19. System check box:

- If a Constraint has the seeded check box selected, and the constraint condition check box
is also selected, you cannot update the constraint condition.

- If a Constraint has the seeded check box selected, and the constraint condition check box
is not selected, you can update the constraint condition.

20. In User Message, enter the trailing portion of the error message that the constraint
processing should display when the user violates the constraint.

For example, if the constraint was to not allow an update of the item field on the order line if
the line has been previously booked, constraints processing displays the error message You are
not allowed to update the item; the item is booked.
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21. Move to the Applicable To tab and specify who the constraint applies to.


Processing Constraints Usage:
As you use Order Management, processing constraints are evaluated for any entity you try to
cancel, delete, create, split, or update. If you are trying to modify an order line, Order Management
evaluates the processing constraints for the Line entity.


Defining Credit Profiles:

Organization Credit Profiles are a set of criteria that define an operating unit's credit policy for
credit control and order credit checking. Credit Profiles include the credit limit and pertinent
data needed to determine total credit exposure for orders undergoing credit checking.

Credit Profile Limits Hierarchy when performing credit checking:

Customer Site Profile
Customer Credit Profile
Operating Unit Default Credit Profile

Note: Item Category Credit Profiles are used if you enable Item Category Credit Check
for a credit check rule.

The Credit Profile window enables users to create and maintain credit information for
Operating Units and Item Categories.

Operating Unit Default Credit Profiles can assist in further defining your credit policies by
providing global defaults if no other information is present during credit checking.

To create a new credit profile, users must specify what type of credit profile to create, and
depending on the credit profile type chosen, appropriate fields within the window become
updatable or non-updatable.

- You cannot define Credit Profiles for Customer or Customer Site by directly
navigating to the Credit Profile window.
- Credit Profiles for Customer and Customer Sites are initially defined when
entering credit information in the Credit section of the Profile-Transactions tab of
the Customer and Customer Site windows. See Oracle Receivables, Customers.

- You must then assign a Credit Usage Rule to your Customer or
Customer Site if you want to enable multi currency credit check.











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Credit Profile Types:

- Customer: Enables you to define credit limits by currency for Customers.

- Customer Site: Enables you to define credit limits by currency for Customer Sites.

- Operating Unit Default: Enables you to set credit limits and terms, by currency, within
a given operating unit

- Operating Unit Default Credit Profiles enable you to effectively enforce a formal credit
checking process for all order transactions/currencies from any customer, provided you
define an Operating Unit Default Credit Profile for each currency you process order
transactions for. For example, if a transaction is entered and no credit limits exist at the
customer or customer site levels for the specified order currency, the Operating Unit
Default Credit Profile for the transaction/currency entered will be used to determine credit
availability.

Note: The Operating Unit Credit Profile is used as the default profile for all
customers that do not have an individual credit profile either at customer or site
level.

- Item Category: Enables you to set order credit limits, by currency, for one or more Item
Categories. This type of profiles enables you to specify limits for the maximum amount on
each order for an item category irrespective of a customer or site

Note: Only categories associated with the default category set for the Order Management
functional area are supported.

Defining Credit Profiles
Organization Credit Profiles are a set of criteria that define an operating unit's
credit policy for credit control and order credit checking. Credit Profiles
include the credit limit and pertinent data needed to determine total credit
exposure for orders undergoing credit checking.

Credit Profile Limits Hierarchy when performing credit checking:

Customer Site Profile

Customer Credit Profile

Operating Unit Default Credit Profile


Note: Item Category Credit Profiles are used if you enable
Item Category Credit Check for a credit check rule.

The Credit Profile window enables users to create and maintain credit
information for Operating Units and Item Categories.

Operating Unit Default Credit Profiles can assist in further defining your credit
54

policies by providing global defaults if no other information is present during
credit checking.

To create a new credit profile, users must specify what type of credit profile to
create, and depending on the credit profile type chosen, appropriate fields
within the window become updatable or non-updatable.

You cannot define Credit Profiles for Customer or Customer
Site by directly navigating to the Credit Profile window.

Credit Profiles for Customer and Customer Sites are
initially defined when entering credit information in the
Credit section of the Profile-Transactions tab of the
Customer and Customer Site windows. See Oracle
Receivables, Customers.

You must then assign a Credit Usage Rule to your
Customer or Customer Site if you want to enable multi
currency credit check.



Credit Profile Types
Customer: Enables you to define credit limits by currency for Customers.

Customer Site: Enables you to define credit limits by currency for Customer
Sites.

Operating Unit Default: Enables you to set credit limits and terms, by
currency, within a given operating unit

Operating Unit Default Credit Profiles enable you to effectively enforce a
formal credit checking process for all order transactions/currencies from any
customer, provided you define an Operating Unit Default Credit Profile for each
currency you process order transactions for. For example, if a


transaction is entered and no credit limits exist at the customer or customer site
levels for the specified order currency, the Operating Unit Default Credit
Profile for the transaction/currency entered will be used to determine credit
availability.






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Note: The Operating Unit Credit Profile is used as the default profile for all
customers that do not have an individual credit profile either at customer or site
level.



- Item Category: Enables you to set order credit limits, by currency, for one or more Item
Categories. This type of profiles enables you to specify limits for the maximum amount on
each order for an item category irrespective of a customer or site

Note: Only categories associated with the default category set for the Order Management
functional area are supported.

Unlike the Operating Unit Default Credit Profile that defines credit limits for specific operating
units, Item Category Credit Profiles are applicable across operating units. Item Category profiles
are global credit profiles and are transaction currency based: the credit limits defined for an item
category are for individual transactions (orders) only. There is no overall system credit limit for a
category

Item Categories enable you to set order credit limits/profiles for one or more item category
(applicable for all customers). For example, an Item Category Credit Profile can specify that the
maximum order value cannot exceed $10,000 USD for any order lines that contain an item
associated with the Item Category Computers. This is extremely useful if your business practice
requires item-based insurance coverage.

Unlike the Operating Unit Default Credit Profile that defines credit limits for specific operating
units, Item Category Credit Profiles are applicable across operating units. Item Category profiles
are global credit profiles and are transaction currency based: the credit limits defined for an item
category are for individual transactions (orders) only. There is no overall system credit limit for a
category.

Item Categories enable you to set order credit limits/profiles for one or more item category
(applicable for all customers). For example, an Item Category Credit Profile can specify that the
maximum order value cannot exceed $10,000 USD for any order lines that contain an item
associated with the Item Category Computers. This is extremely useful if your business practice
requires item-based insurance coverage.
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Oracle Payments Processing:

Order Management provides you with the ability to record credit card information through the
Sales Orders window and obtain authorizations for credit card transactions using Oracle
Payments. You can also set up the security feature to mask confidential card holder information.

Order Management tracks the following credit card information at the order header:

Credit card numbers

Credit type

Credit card holder's names

Expiration dates

Payment types and methods

Authorization codes and amounts

Warning: Oracle Payments processing can only occur if you are using an order type that
has a credit checking rule and the rule will perform the authorization at Booking or
Shipping.

Define Freight and Special Charge Types:
Order Management enables you to charge for freight and special charges to meet your
business needs. The full charge to your customer is visible at the time of order entry and
can be communicated to the customer. The freight and special charge amounts can be
estimated or final. The actual costs incurred are captured at Ship Confirmation and can
be converted to charges based on freight terms and other rules you define. Freight and
Special Charges are created and enabled using pricing Modifiers.

Order Management captures the freight and special charges information and
Shipping Execution captures all costs incurred on the shipment of goods. Once
ship confirmation completes, the costs are transferred to Order Management and
may be used to convert the costs into charges. You can set up your different
freight costs in Shipping Execution.









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Overview of Shipping Tolerances:

Oracle Order Management provides you with the ability to capture shipping tolerance levels for
over and under shipments recorded during ship confirmation. The shipping tolerance feature
enables you to define various shipping tolerance levels for ordered and expected return
quantities. Order Management shipping tolerances are used to validate the percentage of the
ordered quantity. Once shipping tolerances have been defined, Order Management then
automatically fulfills order lines using the tolerances you defined.

Order Management's shipping tolerances feature captures the following:

Over and under shipments and returns percentages at the system,
customer, site, item, site-item, and customer item levels.
Different tolerances for ordered and returned quantities.
Defaulted tolerances from various sources based on your defaulting rules.
Automatic fulfillment of total shipped quantities for order lines within the
under tolerance limit.
Tolerances levels that enable you to over ship at the time of ship
Confirmation.

Over Shipments:
When Oracle Shipping Execution attempts to over ship an order, Order Management processes the
order based on the shipping tolerances you define. In order to perform an over shipment, Order
Management:
- Determines if the ship quantity is within the defined over shipment tolerance levels you
defined by setting the OM: Over-shipment Tolerance profile option or setting your shipment
tolerances in Order Management.
- Notifies the appropriate personnel when an over shipment is above the set shipping
tolerance.
- Issues the material for any unpicked or unreserved quantity.


Under Shipments:
When Oracle Shipping Execution attempts to under ship an order, Order Management processes the
order based on the shipping tolerances you define. In order to perform an under shipment, you
must;
- Ship confirm the quantity at the time of closing the delivery.
- Determine if the total quantity shipped is within the under shipment tolerances you defined.
Any remaining shipment allocations are removed.
- Note: If the total quantity shipped is under the shipment tolerances, Order
Management will split the original shipment line. The shipment will be shipped as
a partial shipment.
- Note: If the total quantity shipped is under the shipment tolerances, Order
Management will split the original shipment line. The shipment will be shipped as
a partial shipment.


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- Under Shipment tolerances greater than 100% are treated as the equivalent of a 100%
tolerance; to close order lines a shipment of a non-zero quantity is required, even if the
under shipment tolerance is set to 100%.
- Note: If a zero quantity is entered at shipment, the system will process the
transaction. However, zero quantity shipments are not allowed; Order
Management will therefore perform a backorder for the zero quantity shipment
line at ship confirm.
Note: A shipment of a quantity other than zero is needed in order to enable order lines to
progress to closure.


Trading Community Usage Within Order Management:




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