ERP and Oracle E-Business Suite Concepts

ERP Definition
ERP stands for Enterprise Resource Planning
ERP is a comprehensive software package
ERP systems typically include the following
characteristics:
An integrated system that operates in real time (or
next to real time), without relying on periodic
updates.
A common database, which supports all applications.
A consistent look and feel throughout each module.
Installation of the system without elaborate
application/data integration by the Information
Technology (IT) department
ERP Functional/Technical Components
Finance/Accounting
Human Resources
Manufacturing
Supply Chain Management (SCM)
Project Management
Customer Relationship Management (CRM)
Data Services
Access Control (User and Role Management)
 Generic ERP Tools
User Interface (Forms)
Reports
Database
Web Server/ Applications Server (for Web
Enabled/based ERPs)
 ERP Features
Independent of Operating System
Independent of Database System
Process End-to-End business Information
Modularity
Integration between modules
Interfacing capabilities with external file and business
applications
Integration with Online Analytical process systems (OLAP)
Web based
Support Multi-Currency transactions
Open to Customization and Localization (Native country
implementation
 Commercial Full Fledged ERPs
Oracle E-Business Suite (from Oracle Corp)
Peoplesoft (from Oracle Corp)
JD Edwards (from Oracle Corp)
SAP (from SAP Labs)
Ramco Marshall (from Ramco Systems)
 Industry/Vertical ERPs
Siebel CRM
Reatek
Hyperion
Flex-Cube
Tally Accounting Package
Sage Accounting Package
 Benefits of Oracle E-Business
Suite
Available in 30 languages
Supports multiple currencies
Supports flexible management of business
processes
Has single database model for entire business data
Supports statutory and customary local
requirements
Is built on open standards
Collaborates with trading partners (customer,
suppliers, dealers, wholesalers etc..)
Oracle E-business Suite Product
Families
Important Modules in Product Families
Financials
General Ledger
Receivables
Cash Management
Fixed Assets
Payables
Sub Ledger Accounting
HRMS
HR
Payroll
Time and Labor
Oracle Learning Management
Advanced Benefits
Manufacturing
Process Manufacturing
OPM Costing
Process Execution
Product Development
E-Records
OPM Quality
Discrete Manufacturing
Bills of Material
Costing
Quality
Work in process
Engineering
Important Modules in Product Families
Projects
Project Costing
Project Billing
Project Manufacturing
Project Resource Management
Project Management
CRM
iStore
Service Requests
Contracts
Teleservice
Depot repair
Field Service
Administration
System Administration
Application Object Library
Alerts
Workflow
Important Modules in Product Families
Sales and Marketing
Order Management
Pricing
Shipping
Release management
Procurement
Purchasing
iProcurement
Sourcing
iSupplier
Oracle E-business Architecture
 Oracle E-Business Architecture
Desktop/Client tier: This tier provides the user interface.
This tier could consist of a desktop computer, laptop or
mobile devices like PDAs, and so on. This tier is mainly
involved in capturing and displaying information to the user.

Application tier: This tier is responsible for holding all the

application logic. It supports and manages various
Applications components, and is sometimes known as the
middle tier.

Database tier: This tier is responsible for storing and

retrieving the application data. It supports and manages the
Oracle database.
 Shared Entities
Shared entities in R12 E-Business Suite enable
one time definition of an object, and the use
of that object across several
modules/products/applications.
Shared entities are owned by one module
from the definition standpoint, but can be
referenced where ever needed.
E-business Suite Shared Entities
AOL Shared Entities
 Shared Entities Ownership
Set of Books - General ledger
Units of Measure - Inventory
Items - Inventory
Suppliers - TCA
Customers - TCA
Organizations - HR
Locations - HR
Sales Force - Sales and Marketing
Employees - HR
Major Business Processes
Procure to Pay (P2P)
 Procure to Pay (P2P)
Procure to Pay
This business flow outlines how a company
raises purchase orders for procurement of
goods or service and then processes
associated invoices for payment, transfer to
GL and reconciliation with bank statements.
Order to Cash (O2C)
 Order to Cash (O2C)
Order to Cash
This business flow encompasses activities
starting from order entry, checking/booking of
the items in the inventory, shipping of goods,
raising invoices, reconciling bank statements
and transferring accounting entries to General
Ledger.
People to Paycheck
 People to Paycheck
People to Paycheck
This business process encompasses activities related to
calculation and generation of payroll payments to
employees. This flow enables users to set up necessary
payroll elements and methods for particular
employees, perform payroll processing (standard
periodic, supplementary, and one-offs for a single
employee), pay employees by check or direct deposit,
request various related reports, and perform costing
and transfer of completed payroll data to the general
ledger.
 Multi-Org
What Is Multi-Org?

Multi-Org is a server-side (applications and database) enhancement that

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

Business
Group

Legal Legal
Entity1 Entity2

Operating Operating Operating

Unit1 Unit2 Unit3
E-business Suite Multi-org Structure

Legal
Entity1

Operating Operating
Unit1 Unit2

Inventory Inventory
WIP Org1
Org1 Org2
 E-Business Suite Modules
Implementation by Modules
Multi-org Data Security Model
 HR Organization Types
Business Group
Legal Entity
Operating Unit
Inventory organization
WIP organization
 Organization Naming Conventions
Organization Naming Considerations
Multi-Org naming conventions should be used to identify the Oracle Organizations
Classification (for example, Set of Books, Operating Unit, Inventory Organization) and
its unique characteristics like country or currency, location name, and usage.
The following are general guidelines for creating Organization Names:
Sets of Books where:

SOB_; is an operational book that obtains journal entries directly from a subledger
system (for example, accounts payable, inventory).
COB_; is a consolidation set of books.
ROB_; is a reporting set of books when using the Multiple Reporting Currency (MRC)
feature.
Business Group: BG_
Human Resources Organization: HR_
Legal Entity: LE_
Operating Unit: OU_
Fundamentals of System
Administration
Define New Application Login User
Assigning Responsibilities to Users
 Tables for User and Responsibility
Assignment
User
FND_USER
Responsibility Assignments to User
FND_USER_RESP_GROUPS

Where FND stands for foundation. All the database

tables of System Administration, Application
object library, Alerts and Workflow modules start
with FND_ prefix
Importance of Responsibilities
Components of Responsibility
 Components of Responsibility
(Defined)
Datagroup : Data group: A data group specifies
the Oracle Application
Menu : A menu specifies the forms that a
responsibility can display and the functions it
can access.
Request Group : Collection of reports and
programs that can be submitted thru a
responsibility.
Define a New Responsibility
Function and Menu security
 Function and Menu security
Use exclusion rules to configure a responsibility. You can exclude functions at any level.
When you exclude a menu item from a responsibility, all menus and functions that are
nested in that menu are also excluded.
When you exclude a function from a responsibility, all occurrences of that function
throughout the responsibilitys menu structure are excluded.

A full access responsibility with a menu that includes all the functions in an application is
predefined for each Oracle Applications product. Some applications may provide additional
predefined responsibilities that include a smaller set of functions (that is, fewer forms and
subfunctions).

As a System Administrator, you can restrict the functionality a responsibility provides by

defining rules to exclude specific functions or menus of functions. In fact, we recommend that
you use exclusion rules to customize a responsibility in preference to constructing a new menu
hierarchy for that responsibility.

For example, suppose you want to customize a responsibility to restrict the functionality of a
form included in that responsibility.
 Profile Options
Profile options control the behavior/access
levels for the different features and
functionalities available from the Oracle E-
business suite.
 Profile option setting levels
Site
Application
Responsibility
User
Profile Option Execution Hierarchy
 Request processing in Oracle E-
business Suite
Tasks in Oracle E-business suite are broadly
categorized as online/immediate and
offline/background processing tasks.
For all the Report and program requests
submitted thru the Standard Request
Submission, the execution is handled by the
background processing engine called Concurrent
Manager
Concurrent manager handles/executes multiple
report/program processing requests by default in
a first come-first serve basis.
 R12 Oracle Database Model
Every Product/Module/Application uses a different schema. (GL for
General ledger, AR for Receivables, AP for Payables)
Tables, Views and Sequences in the product specific schema.
All code objects (triggers, packages, procedures, functions) owned by Apps
Schema.
Public synonyms of tables, views and sequences of all the products owned
by Apps schema
All the Front end responsibilities access the R12 database thru Apps
schema.
Applsys schema holds the tables of Sysadmin, AOL, Alerts and Workflow
modules.
Applsyspub schema tracks the Application user sessions from the login
time to the logout time.
Every module/product has a two corresponding tablespaces one user
tablespace and another index tablespace.
The password of Applsys and Apps schema must always be same, else the
important services/processes like Concurrent Managers etc will not
function.
 Flexfields
A flexfield is a Flexible Field which can
capture varying length of information
depending on the Organizations requirement.

Types of Flexfields
Key Flexfield
Descriptive Flexfield
Range Flexfield
 Descriptive Flexfield
Appears as short, unnamed text item in
majority of forms in Oracle EBS
responsibilities.
By default, all the DFF items/fields would be
disabled.
DFF is used to capture additional business
information that is unique to a business.
All DFFs are enabled in the AOL
Module/Application developer responsibility.
All DFFs are owned by AOL module.
DFF are accessed as Pop-up windows.
 Descriptive Flexfield
DFF information is captured in ATTRIBUTE
Prefixed columns.
Oracle EBS provides from a minimum of 7 to a
max of 45 attribute columns in majority of tables.
DFF Implementation is optional.
DFF data is not reported on the Standard reports
of Oracle EBS reports. Reports must be
customized to publish the output of DFF
information.
New/Additional DFFs can be registered with AOL
module.
DFF information cannot be shared across forms
or modules.
 Key Flexfields
Key Flexfield appear as normal text items with
Labels/boilerplates in Oracle EBS forms.
KFF implementation is mandatory. If a KFF is not
implemented, certain processes, features,
functionalities or set of integrations will not function
properly.
KFFs are also accessed as pop-up windows in the
oracle EBS forms.
KFFs information is stored in SEGMENT prefixed
columns.
All standard reports by default supports the reporting
of KFF data.
New/Additional KFFs can be registered with the AOL
module.
KFF information is shared across Forms/Modules.
 Range Flexfield
Range Flexfield is automatically implemented
once the corresponding KFF is implemented.
Range based operations can be performed in
the reports and forms using the Range
flexfield, with the validation that higher range
values must be equal to or greater than lower
range of values.