Introduction to

Business Processes
in Oracle Applications

Objectives
Understanding Business Processes
Getting started with Oracle Applications

Agenda
Supply Chain Management

Supply Chain Management - Processes

Supply Chain Management - Entities
Supply Chain Management - Cycles Overview
Oracle Solution for SCM Cycles

Customer relationship Management

Financials
Getting Started with oracle Applications
Modelling Enterprise in Oracle Applications

eBusiness Platform

Common Application Architecture & Schema

Travel Management

Projects

Human resources

Financials

Internet Procurement

Supply Chain

Strategic Enterprise
Management

Service

Sales

Marketing

Oracle E-Business Suite

Business Intelligence

Supply Chain Management (SCM)

What is Supply Chain Management?

A supply chain is a network of supplier, manufacturing,
assembly, distribution, and logistics facilities that perform the
functions of procurement of materials, transformation of these
materials into intermediate and finished products, and the
distribution of these products to customers.
Supply chain management (SCM) is a systematic approach to
manage the entire flow of information, materials, and services
from raw material suppliers through factories and warehouses
to the end customer.
Supply Chain Management is the management of the entire
value-added chain, from the supplier to manufacturer right
through to the retailer and the final customer.
SCM has three primary goals: Reduce inventory, increase the
transaction speed by exchanging data in real-time, and
increase sales by implementing customer requirements more
efficiently.
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Supply Chain Management Processes

Create a network for receiving
defective and excess products
back from customers and
supporting customers who have
problems with delivered
products.
Coordinate the receipt of
orders from customers,
Develop
Service
develop a network of
&
warehouses, pick carriers to
Maintain
get products to customers
and set up an invoicing
system to receive payments.
Fulfill
Schedule the
manufacturing activities
necessary for production,
testing, packaging and
preparation for delivery.

Manufacture

Choose the suppliers that will deliver

the goods and services you need to
create your product. Develop a set of
pricing, delivery and payment
processes with suppliers and create
metrics for monitoring and improving
the relationships.

Developing new products is the

starting point of a supply-chain
cycle where Product
specifications are created.
Marketing and Sales generates
demand for the Product by
publicizing its features and how
it would address customer
priorities. In the process,
Marketing also gets customer
feedback and communicates to
Product development group.

Market

Plan

Sell & Manage

Orders
Procure

Planning is the strategic

portion of SCM. You need a
strategy for managing all the
resources that go toward
meeting customer demand
for your product or service.

Maintain and manage the

customer orders, order holds,
notes and release the orders
to warehouse for fulfillment
based on requested date,
product availability and
customer credit limit.

Supply Chain Management Processes Overview

Supply Chain Management - Entities

A supply chain is a
network of suppliers,
manufacturing,
warehouse,
distribution, and
logistics facilities
including the
customers.
Product flow
happens in a
supply chain
from supplier to
manufacturer to
distributor to
retailer to
customer where
as cash &
information flow
happens in the
reverse
8direction.

Supplier

Manufacturer

Customer

Production
Facility

Retailer
Distributor

Oracle Supply Chain Management

Oracle Product
Solutions
Lifecycle
Depot Repair
Field Service
Install Base
Service Contracts
Service
Fulfillment Manager
Spares
Management
Release
Management
Shipping
Execution
Inventory
Management
WMS
Cost
Transportation
Management
Execution
Configure to
Order
Process
Manufacturing
Project
Manufacturing
Quality
Work in Process

Management
. Oracle Advanced
product Catalog

Service &
Maintain
Fulfill

Develop

Telesales
Trade
Management
Incentive
Compensation
Order Capture
Partners Online

Market

Plan

Advanced Supply
Chain Planning
Global Order
Promising

Manufacture

Sell & Manage

Orders
Procure

Purchasing

iProcurement

Order
management
Advanced
Pricing
Configurator
iStore

Oracle Supply Chain Management Solutions

Order & Product Flow

Orders

Order Management

Channel A

Channel B

Orders

Product
s
Orders

Customer
Orders

Product
Product Product
Channel C
Manufacturing s
s
Distribution
Parts

Production
Plans

Part Supply

Demand
Forecas
Supply Planning t
Demand Planning

Component
Requirement
10

Product
s

A Typical Supply Chain: IBM Europe

PC

Warehouse

Port
PC Assembly
Plant

Suppliers
1.2 Million PC/Yr.
(International) Glasgow U.K.

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Retailers

13 Transshipment
CountryPoints (TPs) in Europe wide
Distribution
Centers
(DCs)

Supply Chain Management - Cycles

Su
pp
l ie
rs
Ma ends
nu
fac requ
i
t
Supplier and urer re red ma
Std qu
te
ri
pa est
rts s R al
M
Customer Places Order
Manufacturer Ships Goods

S hop flo
or exec u
tes job
o rder

Reta
iler P
laces
Orde
r
Retailer
Dist
ri
repl
enis butor
hes
Stoc
k

e
im
t
at
s
r
de
or
ds
o
&
go
ck
s
o
p
t
i
sh
sS
r
n
e
ai
ur
nt
t
i
c
a
fa
m
u
r
o
an
ut
M
b
ri
st
i
D

Distributor

12

Mfr Pla
ns and
r
e
le
a
ses Job
Odrer

Customer

Manufacturer
es

Production
Facility

O2C Cycle
Oracle
Review
Advanced
Order Price&
pricing

Oracle
Enter
Order
Order/Line
Management details
Oracle
Shipping
Oracle
Execution
Transportation
Ship
Management

Adjustments

Check
Availability,
Schedule
Order

Confirm

Oracle
Mobile Supply
Chain
Application
Oracle
WMS

Pick
Confirm

Oracle
INV
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Oracle
Global
ATP

Oracle
Order
Management
Oracle
Shipping
Execution
Pick
Release
the Order

Book the
Order

P2P Cycle
Oracle
Purchasing

Oracle
INV
Inspect
& Deliver

Oracle
iProcurement
Create
Requisition

Create RFQ
(Optional)

Oracle
Purchasing

Oracle
WMS
Oracle
Mobile Supply
Chain
Application
Oracle
INV
Receive

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Oracle
Purchasing

Create Quotation
(Optional)

Oracle
Purchasing
Create Purchase
Order

P2M Cycle
Launch
ASCP Plan

Oracle
ASCP

Oracle
ASCP

Analyze Plan
Output
and
Release Work
order

Oracle
Demand Planner

Oracle
WMS

Do Forecast and
setup ASCP
Plan
Parameters

Oracle
INV
Oracle
INV
Complete and
Issue Assy to FGI

15

Oracle
ASCP

Oracle
WIP

Oracle
OSFM

Process and
Move
Assembly thru
all processing
steps

Oracle
WIP
Issue
Components
for the Assembly

Customer relationship management

(CRM)

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Customer relationship management

(CRM)
Customer relationship management (CRM) is a broad term that
covers concepts used by companies to manage their relationships
with customers, including the capture, storage and analysis of
customer information.
Oracles CRM Suite of Applications try to cater to the mantra of
Information-Driven CRM by addressing various needs of
Organizations. It is designed to help organizations.
Align marketing, sales and service to overall corporate objectives
Drive profit through selling and service effectiveness
Maximize collaboration across all customer-facing channels; direct,
partner, service and ecommerce

The broad module level divisions offered in Oracle CRM Suite are

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Oracle Marketing and Sales

Oracle Customer Service
Oracle Channel Management
Daily Business Intelligence for CRM

Financials

18

Financial Modules
Oracle Financial comprises of the following main Finance
Modules

19

General Ledger
Accounts Payable
Accounts Receivables
Fixed Assets
Cash Management

Oracle Financials Suite

Inventory

Purchasing

Payables
Cash Mgt

Assets

Receivables

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Order

General Ledger

Financial Modules-Overview

Oracle General Ledger (GL):

Accounts Payable (AP)

Payables, an expenditure management tool, used to streamline the procure-to-pay

process
Payable used to Manage Suppliers, Manage Disbursements & Manage Payments
Saves money by enforcing various payment policies
Effective integration with Cash Management, Purchasing, General Ledger, Assets &
Projects

Accounts Receivables (AR)

21

The central repository of all financial transactions.

At the heart of any accounting system.
A tool, for integrating sub-ledger activity, consolidating group-wide accounts and
releasing statutory/analytical financial reports.

An invoicing and collections management application, used to streamlines orderto cash process
Receivables manages invoicing, tax calculation, receipt application, collections,
and revenue recognition,
Effective Integration with Cash Management, Order Management, General Ledger
& Projects

Financial Modules-Overview
(Contd.).
Cash Management (CM)
CM helps one to effectively manage and control cash cycle of
the enterprise in order to ensure liquidity and improve
profitability.
Tool used to Manage the Cash Forecasting and reconciling the
bank transactions from Receivables, Payables and General
Ledger with the Bank Statements.

Fixed Assets (FA)

Asset management encompasses three primary activities:
Physical Upkeep: Comprises asset location, asset condition and
assignment
Asset Tracking: Covers the whole gamut from controlling leased,
loaned and consigned items from acquisition to asset maintenance.
Financial: Involves asset value, depreciation and taxation.

To maintain and calculate the depreciation to the Assets

Integrates with Purchasing, Payables , General Ledger & Projects
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Getting Started with Oracle

Applications

23

Enterprise Modeling
Business Group: represents the highest level in the organization structure. It secures
human resources information, eg. when you request a list of employees, you see all
employees assigned to the business group of which your organization is a part.

24

Enterprise Modeling
Ledger: A financial reporting
entity that uses a particular chart
of accounts, functional currency,
and accounting calendar. Oracle
General
Ledger
secures
transaction information (such as
journal entries and balances) by
set of books.
Legal Entity: is a legal company for
which you prepare fiscal or tax reports.
You assign tax identifiers and other
legal entity information to this type of
organization.
Balancing Entity: This is a segment in
the Accounting Flexfield structure
Company
segment)
at which
all balancing entities.
(usually
Each legal
entity can
have one
or more
entries
must
balance.
accounting
You can use
Flexfield
Value
Security rules to restrict data entry of balancing segment
values by legal entity or operating unit

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Enterprise Modeling (Contd.).

Operating Unit: is associated with a
legal entity. Information is secured by
operating unit for applications viz:
Order
Management,
Shipping
Execution, Oracle Payables, Oracle
Purchasing, Oracle Receivables and
Oracle Cash Management.
To run any of these applications, you
choose a responsibility associated with
an operating unit.
Inventory
Organization:
is
an
organization for which you track
inventory transactions and balances,
manufactures or distributes products
viz: manufacturing plants, warehouses,
distribution centers, and sales offices.
The following applications secure information by inventory organization: Oracle
Inventory, Bills of Material, Engineering, Work in Process, MRP and receiving functions.

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Enterprise Modeling (Contd.).

Inventory orgn
Washington Plant

SubInventory
FGI

Stock Locator
R1.R5.B1

Staging Lane
A.1.1

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Subinventories are unique

physical or logical separations
of material inventory, such as
raw inventory, finished goods
or defective material. All
material within an organization
is held in Subinventories.
A stock locator can be of
Storage locator, Dock door or
Staging lane type. Staging
lane is used for staging after
pick
releasing,
Storage
locators store material. During
load process material is
transferred from staging lane
to Dock door.

Maintain Organizations
All types of organizations can be
defined
using
the
Define
Organization
Choose a location where this
organization exists.
Enter what type(s) of organization is
this, in organization classification viz.
GRE/Legal Entity: Enter Legal Entity
Accounting info like Ledger, Location.
Operating Unit: Enter Operating Unit
Information
like
Legal
context,
Ledger.
Inventory Organization:
Enter its
Accounting Information like Ledger,
Legal context & Operating Unit.

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Organizations Technical
Architecture

All organizations are maintained in

HR_ALL_ORGANIZATION_UNITS table and organization
classifications like Legal entity or operating unit
information are stored in
HR_ORGANIZATION_INFORMATION table. There are 3
views provided based on these 2 tables to easily find
out the Legal entity, Operating unit and Inventory
organization viz: HR_LEGAL_ENTITIES,
HR_OPERATING_UNITS,
Organization_id in
ORG_ORGANIZATION_DEFINITIONS.
HR_LEGAL_ENTITIES is referred as HR_LEGAL_ENTITIES
BUSINESS_GROUP_ID
legal_entity_id in
ORGANIZATION_ID
HR_OPERATING_UNITS
NAME
DATE_FROM
legal_entity in
DATE_TO
ORG_ORGANIZATION_DEFINITIONS SET_OF_BOOKS_ID
VAT_REGISTRATION_NUMBER
Organization_id in
HR_OPERATING_UNITS
HR_OPERATING_UNITS is referred
BUSINESS_GROUP_ID
as
ORGANIZATION_ID
NAME
operating_unit in
DATE_FROM
ORG_ORGANIZATION_DEFINITIONS DATE_TO
LEGAL_ENTITY_ID
SET_OF_BOOKS_ID

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HR_ALL_ORGANIZATION_UNITS
ORGANIZATION_ID
NAME
BUSINESS_GROUP_ID
LOCATION_ID
DATE_FROM
INTERNAL_EXTERNAL_FLAG
INTERNAL_ADDRESS_LINE
TYPE
HR_ORGANIZATION_INFORMATION
ORG_INFORMATION_ID
ORG_INFORMATION_CONTEXT
ORGANIZATION_ID
ORG_INFORMATION1 ~ 20
ORG_ORGANIZATION_DEFINITIONS
ORGANIZATION_ID
BUSINESS_GROUP_ID
USER_DEFINITION_ENABLE_DATE
DISABLE_DATE
ORGANIZATION_CODE
ORGANIZATION_NAME
SET_OF_BOOKS_ID
CHART_OF_ACCOUNTS_ID
INVENTORY_ENABLED_FLAG
OPERATING_UNIT
LEGAL_ENTITY

Location Addresses

Define
Location
name(code)
and
addresses for the locations you use
within your enterprise. These are used
for a variety of functions viz: receiving,
shipping and billing
Enter address style and address for the
location.
Enter ship to location code and other
site use info.
Associate the location code with an inv
HR_LOCATIONS_ALL
organization.
LOCATION_ID
ENTERED_BY
LOCATION_CODE
ADDRESS_LINE_1
ADDRESS_LINE_2
ADDRESS_LINE_3
BILL_TO_SITE_FLAG
COUNTRY
DESCRIPTION
DESIGNATED_RECEIVER_ID
IN_ORGANIZATION_FLAG
INACTIVE_DATE
INVENTORY_ORGANIZATION_ID
OFFICE_SITE_FLAG
POSTAL_CODE

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Subinventories

Subinventories are unique

physical
or
logical
separations
of
material
inventory,
such
as
raw
inventory, finished goods or
defective
material.
All
MTL_SECONDARY_INVENTORIES
material
within
an
SECONDARY_INVENTORY_NAME
organization
is held in
ORGANIZATION_ID
DESCRIPTION
Subinventories.
DISABLE_DATE
INVENTORY_ATP_CODE
AVAILABILITY_TYPE
RESERVABLE_TYPE
LOCATOR_TYPE
PICKING_ORDER
MATERIAL_ACCOUNT
MATERIAL_OVERHEAD_ACCOUNT
RESOURCE_ACCOUNT
OVERHEAD_ACCOUNT
OUTSIDE_PROCESSING_ACCOUNT
QUANTITY_TRACKED
ASSET_INVENTORY
SOURCE_TYPE
SOURCE_SUBINVENTORY
PREPROCESSING_LEAD_TIME
PROCESSING_LEAD_TIME
STATUS_ID

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Item Locators
MTL_ITEM_LOCATIONS

32

A stock locator can be of Storage locator, Dock

door or Staging lane type. Staging lane is used for
staging after pick releasing, Storage locators store
material. During load process material is
transferred from staging lane to Dock door.

INVENTORY_LOCATION_ID
ORGANIZATION_ID
DESCRIPTION
DISABLE_DATE
INVENTORY_LOCATION_TYPE
PICKING_ORDER
PHYSICAL_LOCATION_CODE
LOCATION_MAXIMUM_UNITS
SUBINVENTORY_CODE
LOCATION_WEIGHT_UOM_CODE
MAX_WEIGHT
VOLUME_UOM_CODE
MAX_CUBIC_AREA
X_COORDINATE
Y_COORDINATE
Z_COORDINATE
INVENTORY_ACCOUNT_ID
SUMMARY_FLAG
ENABLED_FLAG
START_DATE_ACTIVE
END_DATE_ACTIVE
PHYSICAL_LOCATION_ID
PICK_UOM_CODE
DIMENSION_UOM_CODE
LENGTH
WIDTH
HEIGHT
LOCATOR_STATUS
STATUS_ID
CURRENT_CUBIC_AREA
AVAILABLE_CUBIC_AREA
CURRENT_WEIGHT
AVAILABLE_WEIGHT

Item Subinventories

33

You can assign items

to
a
given
subinventory
such
that the items are
restricted
to
that
subinventory.
Thus, you can always
issue
and
receive
unrestricted items to
any subinventory, but
you can only issue
and receive restricted
items to their list of
subinventories.
You activate the list of
subinventories for a
restricted
item
by
setting the Restrict
Subinventories
attribute
when
defining or updating
item.

MTL_ITEM_SUB_INVENTORIES
INVENTORY_ITEM_ID
ORGANIZATION_ID
SECONDARY_INVENTORY
PRIMARY_SUBINVENTORY_FLAG
PICKING_ORDER
MIN_MINMAX_QUANTITY
MAX_MINMAX_QUANTITY
INVENTORY_PLANNING_CODE
FIXED_LOT_MULTIPLE
MINIMUM_ORDER_QUANTITY
MAXIMUM_ORDER_QUANTITY
SOURCE_TYPE

MOAC (Multi org access control)

Multiple Organizations
provide security profiles
which enable users to
access, process, and
report data in multiple
operating units from a
single responsibility.
In Security Profile
form, assign multiple
operating units to a
security profile.

34

MOAC (Multi org access control)

You must set either the
MO: Operating Unit or
MO: Security Profile
option for each
application responsibility
to use Multiple
Organizations context
sensitive applications.
When you connect to the Oracle Applications, you sign on by entering your
user name and password. Then, you choose a responsibility that is available to
your user. After you choose your responsibility, there is an initialization routine
that reads the values for only the information for those operating units that are
assigned to your responsibility.
If you set the MO: Security Profile profile option, you can also set an operating unit as
the default operating unit using the MO: Default Operating Unit profile option. This is
useful when you transact in multiple operating unit but frequently transact in one
operating unit.
35

You can set your SQL session context for a single OU with the following:
BEGIN
Mo_global.set_policy_context('S',103);
END;
The S means Single Org Context
2 is the ORG_ID

Set your SQL session context for multiple OUs with the following:
BEGIN
execute mo_global.set_org_access(NULL,64,ONT');
END;
64 is the Security Profile you want to use
ONT is the application associated with the responsibility you will be using

The following SQL will dump out the Security Profiles and Operating Unit Names
assigned to them
select psp.SECURITY_PROFILE_NAME,
psp.SECURITY_PROFILE_ID,
hou.NAME,
hou.ORGANIZATION_ID
from PER_SECURITY_PROFILES psp,
PER_SECURITY_ORGANIZATIONS pso,
HR_OPERATING_UNITS hou
where pso.SECURITY_PROFILE_ID = psp.SECURITY_PROFILE_ID
and pso.ORGANIZATION_ID = hou.ORGANIZATION_ID;

36

References
1. Supply chain Management - Strategy,
Operations by Sunil Chopra , Peter Meindl

37

Design

and

Thank You

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