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.
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 calledCUSTOMER 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.
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. Harry’s 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.
Harry’s 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 everybody’s 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.
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.
Terminology often used in Oracle Applications:
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
No comments:
Post a Comment