ENTERPRISE RESOURCE

PLANNING
(ERP)

Enterprise resource planning (ERP) is a cross-functional enterprise system

driven by an integrated suite of software modules that supports the basic
internal business processes of a company.
ERP gives a company an integrated real-time view of its core business
processes such as production, order processing, and inventory management,
tied together by ERP applications software and a common database
maintained by a database management systems.
ERP systems track business resources (such as cash, raw materials, and
production capacity) and the status of commitments made by the business
(such as customer orders, purchase orders, and employee payroll), no matter
which department (manufacturing, purchasing, sales, accounting, and so on)
has entered the data into the system.
ERP facilitates information flow between all business functions inside the
organization, and manages connections to outside stakeholders

BENEFITS OF ERP:
ERP can greatly improve the quality and efficiency of a business. By keeping
a company's internal business process running smoothly, ERP can lead to
better outputs that benefit the company such as customer service, and
manufacturing.
ERP provides support to upper level management to provide them with
critical decision making information. This decision support allows the upper
level management to make managerial choices that enhance the business
down the road.
ERP also creates a more agile company that better adapts to change. ERP
makes a company more flexible and less rigidly structured so organization
components operate more cohesively, enhancing the businessinternally
and externally.

BENEFITS OF ERP:
Ease of data access with data integrity: ERP enables user to access real
time organizational data in a hassle free manner. All departments can access
every data independently: like stock data, payables, receivables, production
status, material work in progress status, delivery due date, delivery address,
customer, and supplier information etc.
Data integrity means to ensure correct data in the data base. There are
many ways through which the integrity violation may occur, like unauthorized
employees entering wrong or incorrect data or modifying the data etc. There
are ways to stop practices by controlling the access to data with the security
system, using error detection technique, etc. ERP control the unauthorized
access of data and everything to protect data integrity.
Reduces data redundancy and increases data consistency: Integration
between applications and data sharing reduces data redundancy. Duplicate
information typically hampers the total system. Data consistency also
increases remarkably as the data is shared from a single source.

BENEFITS OF ERP:
Reduces time: The data flows from one application to another seamlessly
thereby reducing the requirement of entering the data repeatedly. For
example, data in the OM can be used to create customer invoices without
entering the data again.
Greatly reduces inventory loss: Through the ERP businesses can easily
keep track of the items which are in the store, along with their expiry date, if
any, and other details like minimum and maximum stock levels, reorder level
etc. This enables them to manage their inventory well such that losses on
account of pilferage, expiry, overstocking or under stocking etc. are reduced
to the minimum, if not eliminated altogether.
Easier sales and other planning: ERP provides snapshot of all the
resources of the organization that are available. This makes the job of the
managers very easy to plan and deploy these resources such that they can
get maximum return. ERP also enables businesses to maintain better
relations with their customers and suppliers.

MULTIORG

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.
Multi-Org keeps transaction data and some setup data
separate and secure by different lines of business.

In Oracle Applications Release R12, the following products

support Multi-Org capabilities:
Cash Management
Order Management, Shipping Execution and Release
Management
Payables
Property Manager
Projects
Purchasing
Receivables
Incentive Compensation
Sales and Marketing
Service

BUSINESS NEEDS FOR MULTI-ORG

Support multiple business units even if they use different
ledgers.
Secure access to data on a single instance by line of business.
Define different organizational models.
Sell and ship from different legal entities.
Procure and receive from different legal entities.
Produce reports across entities or within a single entity

LEDGER

A Ledger is a financial reporting entity, which implements the four Cs and

is a single repository of financial truth.
Chart of Accounts (COA: Accounting Flexfield Structure)
Functional Currency
Financial Accounting Calendar
Accounting Conventions

Oracle GL receives information from:

Manufacturing
Projects
Human Resources Management
Financial Modules
Customer Relation Management
Other Sub-Ledgers

Oracle GL enables you to:

Record and review accounting information
Import data from subledgers or enter journals to record actual and
budget transactions directly into GL
Enter encumbrance journals to control spending against budgeted
amounts
Review account balances online or through reports
Analyze, correct and adjust accounting information
Revalue and translate balances denominated in foreign currencies
Consolidate balances from multiple ledgers
Integrates with other modules and reporting tools for easy
budgeting and forecasting

Functions and Features:

Information access
Financial controls
Data collection
Financial reporting and analysis

General Ledger Accounting Cycle

Open period
Create reverse journal entries
Post
Review
Revalue / translate
Consolidate
Review and correct balances
Run reports / close period
Open period

Critical Implementation Issues:

Shared information
Information flows
Open interfaces
Non-Oracle systems

Oracle GL integrates with:

Payables
Receivables
Assets
Purchasing
Projects
Treasury
Property Manager
Lease Management
Human Resources
Payroll
Inventory
Work in Progress
Labour Distribution

Also integrates with:

Financial Consolidation Hub
Enterprise Planning and Budgeting
Oracle Financial Services Application
Daily Business Intelligence
Activity Based Management

Integration with subledgers:

Data pushed from subledgers to GL Interface Table
Journal import pulls the data from interface tables to create postable
Journal Vouchers
Then post the JVs to update the GL Balances

Overview of Accounting Setup Manager

Central place for defining and maintaining accounting setup for the
following:
Legal entities
Operating units
Ledgers
Reporting currencies
Inter company and intra company balancing

Foreign Currency Concepts:

Conversion
Revaluation
Translation

Other features of GL:

Budgeting
Reporting and analysis
Standard reports
Financial Statement Generator