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Technical Terms in Oracle Apps explained through real time example

Story

The below example explains a few of the important terms and concepts used in the Oracle E-
Business Suite. This would be a good starting point for the beginners to better understand the
concepts behind Oracle Applications.

Say Harry is the owner of a wholesale fruit shop. He buys various fruits like apples, oranges,
mangos and grapes etc from farmers directly and sells them to retail shop owners and also to the
direct customers.

The farmers are referred to as VENDORS/SUPPLIERS in Oracle Applications. Harry


keeps track of all his vendors information like addresses, bank account and the amount he owes
to them for the fruits that he bought etc, in a book named PAYABLES.

Harry gets an order from a retail shop owner of Fruit Mart, for a shipment of 11 bags of apples,
25 bags of oranges and 32 kgs of grapes. In Oracle Apps, bags and kgs are referred to as UOM
(unit of measure), Fruit Mart is called CUSTOMER and the order is referred to as SALES
ORDER. Harry maintains a book called
ORDER MANAGEMENT where he writes down all the details of the SALES ORDERS that
he gets from his customers.

Say the fruits have been shipped to the customer Fruit Mart. Harry now sends him the details like
cost of each bag/fruit, the total amount that the customer has to pay etc on a piece of paper which
is called INVOICE / TRANSACTION. Once the INVOICE has been sent over, the customer
then validates this against the actual quantity of fruits that he received and will process the
payments accordingly. The invoice amount could be paid as a single amount or could be paid in
installments. Harrys customer, Fruit Mart pays him in installments (partial payments). So Harry
has to make a note of the details like date received, amount received, amount remaining, amount
received for what goods/shipments/invoice etc, when Harry receives the payments. This detail is
called RECEIPT, which will be compared to the invoice by Harry to find how much Fruit Mart
has paid to him and how much has to be paid yet. This information is maintained in a book
named RECEIVABLES to keep track of all the customers, their addresses (to ship the items),
what and how much he has shipped to his customers and the amount his customers owe him etc.

Harrys fruit business has begun to improve and has attracted more and more customers. As a
result, Harry decided to buy a cold storage unit where he could stock more fruits. In Apps, this
cold storage unit is known as WAREHOUSE and all the fruits are referred to as INVENTORY.
Due to increase in customers, Harry needs to hire more people to help him out in his business
without any hiccups. These workers are called EMPLOYEES. At the end of every month, Harry
pays the salary for all his employees through Checks. These checks are nothing but PAYROLL
in Apps.
At the end of every month, Harry prepares a balance sheet in a book called GENERAL
LEDGER to determine how much profit/loss he got and keeps track of the money going out and
going in.

As the business grows, it becomes impossible to record everything on a paper. To make


everybodys life easier, we have very good tools in the market, which help the business men to
keep track of everything. One such tool is Oracle E-Business Suite.

Oracle Applications is not a single application, but is a collection of integrated applications. Each
application is referred to as a module and has it own functionality trying to serve a business
purpose.

Few of the modules are Purchasing, Accounts Payables, Accounts Receivables, Inventory, Order
Management, Human Resources, General Ledger, Fixed Assets etc.

Here is a high level business use of various modules:

Oracle Purchasing handles all the requisitions and purchase orders to the vendors.

Oracle Accounts Payables handles all the payments to the vendors.

Oracle Inventory deals with the items you maintain in stock, warehouse etc.

Order Management helps you collect all the information that your customers order.

Oracle Receivables help you collect the money for the orders that are delivered to the
customers.

Oracle Human Resources helps maintain the Employee information, helps run paychecks etc.

Oracle General Ledger receives information from all the different transaction modules or sub
ledgers and summarizes them in order to help you create profit and loss statements, reports for
paying Taxes etc. For Example: when you pay your employees that payment is reported back to
General Ledgers as cost i.e money going out, when you purchase inventory items and the
information is transferred to GL as money going out, and so is the case when you pay your
vendors. Similarly when you receive items into your inventory, it is transferred to GL as money
coming in, when your customer sends payment, it is transferred to GL as money coming in. So
all the different transaction modules report to GL (General Ledger) as either money going in or
money going out, the net result will tell you if you are making a profit or loss.

All the equipment, shops, warehouses, computers can be termed as ASSETS and they are
managed by Oracle Fixed Assets.

There is a lot more in Oracle applications. This is the very basic explanation just to give an idea
of the flow in ERP for the beginners.
Oracle Apps Terminology and Tools:

1. Invoice
2. Receipt
3. Customer
4. Vendor
5. Buyer
6. Supplier
7. Purchase Order
8. Requisition
9. ACH: Account Clearance House
10. Sales Order
11. Pack Slip
12. Pick Slip
13. Drop Ship
14. Back Order
15. ASN: Advance Shipping Notice
16. ASBN: Advance Shipping Billing Notice
17. ATP: Available to Promise
18. Lot/Serial Number
19. DFF: Descriptive Flex Fields
20. KFF: Key Flex Fields
21. Value Sets
22. Organization
23. Business Unit
24. Multi Org
25. Folders
26. WHO Columns
27. Oracle Reports
28. Oracle Form
29. Workflow Builder
30. Toad
31. SQL Developer
32. SQL Navigator
33. Discoverer Reports
34. XML/BI Publisher
35. ADI: Application Desktop Integrator
36. Winscp
37. Putty

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