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. 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.

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

115 Comments

  1. Excellent
    May 25, 2011 @ 16:54:15

    Excellent article

    Reply

    • Jatindra
      Apr 05, 2012 @ 18:59:42

      Its excelent

      Reply

  2. Excellent
    May 25, 2011 @ 16:55:25

    Excellent

    Reply

  3. santosh
    May 27, 2011 @ 16:01:05

    Very Excellent Article!!!

    Reply

  4. Nag
    May 30, 2011 @ 01:36:45

    Excellent ……….

    Reply

  5. suresh
    Jun 01, 2011 @ 10:46:26

    very good artical

    Reply

  6. FEROZ
    Jun 05, 2011 @ 09:40:05

    very good article to understand apps

    Reply

  7. Mehboob Alam
    Jun 14, 2011 @ 20:29:21

    Very fruitfull info regards for Apps. Excellent example to understand….Keep it up

    Reply

  8. DEBRAJ
    Jun 17, 2011 @ 11:56:55

    its very helpful for beginners

    Reply

  9. suresh
    Jun 23, 2011 @ 16:56:22

    good one…thanks for this

    Reply

  10. Rama
    Jun 28, 2011 @ 12:27:07

    very nice its very use full

    Reply

  11. pratik
    Jul 05, 2011 @ 14:45:38

    `excellent article…very helping

    Reply

  12. dipika
    Jul 06, 2011 @ 13:04:28

    v.useful article..thankyou

    Reply

  13. vijayan
    Jul 11, 2011 @ 18:02:16

    very good article.

    Reply

  14. Anand
    Jul 12, 2011 @ 03:03:33

    excellent,,,its very useful.,,,it is easier to understand for the beginners

    Reply

  15. Fayaz
    Aug 08, 2011 @ 11:07:09

    Very help ful info for beginners

    Reply

  16. harikrishna
    Aug 17, 2011 @ 12:36:47

    very helpful information for the begginers

    Reply

  17. harikrishna
    Aug 17, 2011 @ 12:38:29

    very helpful information for the beginners

    Reply

  18. harikrishna
    Aug 17, 2011 @ 12:39:55

    excellent,,,its very useful.,,,it is easier to understand for the beginners

    Reply

  19. eshwer
    Aug 17, 2011 @ 17:35:13

    this is excellent for freshers they can understand easily and it is very useful.

    thanks……………………….

    Reply

  20. Divya.appstech
    Aug 18, 2011 @ 15:44:51

    Very Excellent article

    Reply

  21. James Rami
    Aug 19, 2011 @ 15:34:47

    Very useful and Excellent article

    Reply

  22. James Rami
    Aug 19, 2011 @ 15:35:49

    VeryusefulandExcellentarticle

    Reply

  23. alpana
    Aug 25, 2011 @ 23:33:57

    Great work done ….explained a complex process in simple words….

    Reply

  24. AKS
    Aug 28, 2011 @ 17:43:54

    Very helpful …

    Reply

  25. kATHIKEYAN m
    Sep 03, 2011 @ 20:26:40

    very useful for beginners

    Reply

  26. yogita
    Sep 14, 2011 @ 16:48:29

    VERY NICE ARTICAL .
    It will be very helpful if you give flow of data in each modul with screenshot like o2c & p2p.

    Regards,
    Yogita

    Reply

  27. dipak
    Sep 21, 2011 @ 11:21:54

    Really nice one……….very interasting to read and understand…………..

    Reply

  28. mick
    Sep 22, 2011 @ 06:21:10

    great article, could you recommend an article explaing what jobs different people eg. DBA’s, developer do in the oracle environment. Thanks

    Reply

  29. satya
    Sep 27, 2011 @ 16:40:45

    excellent article for beginners.

    Reply

  30. venky
    Oct 10, 2011 @ 12:21:32

    Its a very good startup for the beginners and it helped me in getting good idea about ERP

    Reply

  31. RAKESH
    Oct 10, 2011 @ 19:00:57

    Very fruitfull info regards for Apps. Excellent example to understand.
    Explained a complex process in simple words.
    Keep it up.

    Reply

  32. sridevi
    Oct 12, 2011 @ 18:28:28

    wow..excellent article..vry helpful..thank u..

    Reply

  33. Chowri
    Nov 04, 2011 @ 12:30:48

    Supreb….

    Reply

  34. Sandeep
    Nov 07, 2011 @ 08:50:59

    no words……excellent explanation

    Reply

  35. Guruprakash
    Nov 07, 2011 @ 11:28:20

    Its very good initiator for our Oracle apps. we are thankful to u.

    Reply

  36. devika
    Nov 15, 2011 @ 17:14:05

    superb

    Reply

  37. Guruprakash
    Nov 21, 2011 @ 17:01:43

    Its an amasing and simply article whic explains apps in a good flow . very helpfull for the beginners.

    thanks

    Reply

  38. Mouli
    Nov 21, 2011 @ 17:06:22

    Hi,
    One doubt sir if we orders for a goods to our vendor or customer(Fruit Mart ) orders to us(Harry) , both are sales order only na.
    pls text on this .
    if not anyone can reply for this

    thanks in advance.

    Reply

  39. Muni Sekhar
    Dec 05, 2011 @ 15:49:27

    very helpful information for the beginners

    Reply

  40. Yugandhar
    Dec 06, 2011 @ 23:02:51

    Simply goog article ….

    Reply

  41. Naresh
    Dec 11, 2011 @ 23:14:07

    thanx for providing clear info abt oracle apps terminilogies..i got some more info in addition to what i got from institution

    Reply

  42. Krishan
    Dec 26, 2011 @ 11:09:00

    Very good

    Reply

  43. Manoj Kumawat
    Dec 28, 2011 @ 17:32:56

    Intersting .. way to explain is excellent ….

    Manoj kumawat

    Reply

  44. jitendra
    Dec 29, 2011 @ 11:04:47

    The article is really worthfull for every oracle EBS user , can you please explain how o2c flows

    regards,
    Jitendra

    Reply

  45. rambabu
    Jan 14, 2012 @ 16:30:45

    wt a example u given superb sir never wu did not get these type of information

    Reply

  46. Arunkumar
    Feb 04, 2012 @ 10:24:37

    good article..good explanation.its very useful to understanding the technical terms in oracle apps…

    thank U..

    Reply

  47. developers.keane
    Feb 09, 2012 @ 14:18:48

    The Very Usefull article for begginers.
    thank you so much :)

    Reply

  48. Mohammad Younus Qureshi
    Feb 09, 2012 @ 18:37:25

    wonderfull article …. very usefull for begineer ..!!
    thanx indeed !!

    Reply

  49. Nikunj
    Mar 05, 2012 @ 12:19:55

    Great Article… Maked it look so easy and simple…!!!

    Reply

  50. Bharat
    Mar 08, 2012 @ 16:47:38

    Simple way to define a complicated concepts..Very useful. Thanks a lot

    Reply

  51. sandeep
    Mar 09, 2012 @ 12:55:53

    Thankq……….This is very useful for me because i’m a beginner of this course thanqs ………………..

    Reply

  52. Prakash
    Mar 13, 2012 @ 17:30:23

    Superb Explanation .
    Thanks a lot !!!

    Reply

  53. vamsi
    Mar 15, 2012 @ 21:06:41

    ya…its very interesting

    Reply

  54. bbr
    Mar 17, 2012 @ 02:00:42

    thank you, Before i dont knw exactly terminalagy ,,nw i got the exact way of business in simple fruit mart to ORGANIZATION level.

    Reply

  55. Shubham
    Mar 20, 2012 @ 11:04:16

    Awesome………… I had never seen such good example……thnx

    Reply

  56. tej
    Mar 28, 2012 @ 15:56:27

    IT IS VERY MUCH HELPFUL FOR BEGINNERS,GOOD EXAMPLE

    Reply

  57. adesh
    Mar 30, 2012 @ 15:25:41

    Excellent article.

    For beginners like me……..its very simple to digest oracle apps flow thr this article.
    Thanx.!!!

    GO AHEAD.!!!!!!!!

    Reply

  58. amol
    Apr 04, 2012 @ 10:51:18

    Exactly !! What I was looking for………….
    Thanks………..

    Reply

  59. Deepak
    Apr 04, 2012 @ 13:38:08

    Thanks for the Explanation.

    Reply

  60. chandra
    Apr 07, 2012 @ 11:53:12

    excellent article……………..

    Reply

  61. ram kumar
    Apr 10, 2012 @ 10:06:14

    NICE EXPLANATION……………..

    Reply

  62. Naresh
    Apr 20, 2012 @ 06:45:03

    Really very good explanation. Help to me to understand.

    Reply

  63. venkat
    May 03, 2012 @ 01:25:59

    excellent

    Reply

  64. chita ranjan shadangi
    May 08, 2012 @ 11:57:10

    hi all,
    as i m a beginner i want o2c and p2p module cycle and screen shots,if anyone will provide to my mail
    thanks
    chitaranjan

    Reply

  65. Sanjoy Barnwal
    May 10, 2012 @ 12:22:23

    Good article for beginners…

    Reply

  66. Shiva
    May 14, 2012 @ 12:01:32

    although i am not begineer, but i loved your story.
    great job.

    Best regards,
    Shiva

    Reply

  67. pavan_krishna
    May 15, 2012 @ 14:28:03

    Awesome post……clear explanation..:)
    Thanks alot .

    Regards,
    Pavan

    Reply

  68. Naveen Kumar
    May 24, 2012 @ 16:36:56

    Simply Superb…Thank U so much sharing valuable information

    Reply

  69. Madhuri
    Jun 15, 2012 @ 19:43:58

    superb explanation . thanx

    Reply

  70. Yogita
    Jun 20, 2012 @ 17:00:15

    Amazing explained

    Reply

  71. gopi
    Jun 21, 2012 @ 01:40:39

    Really helpful to beginners for understanding the basic terminology and well. Thank you very much.

    Reply

  72. gopi
    Jun 21, 2012 @ 01:42:09

    Really helpful to beginners for understanding the basic terminology and for going forward well.

    Thanks alot.

    Reply

  73. uday
    Jun 26, 2012 @ 11:23:19

    Thanx,very nice article for beginers
    Excellent perception of author

    Reply

  74. Hari Kiran
    Jun 27, 2012 @ 15:15:44

    Its really awesome….

    Reply

  75. Manoj
    Aug 13, 2012 @ 14:19:12

    Very Good Article

    Complex Business Flow in simple words and with a Good Example.

    Reply

  76. Punithan
    Aug 14, 2012 @ 12:56:17

    Nice!! Good real time examples!

    Reply

  77. Srinivas
    Aug 14, 2012 @ 13:50:39

    Really Awesome for Beginers…Gr8 Doc

    Reply

  78. Ram
    Sep 03, 2012 @ 07:00:24

    Woowww… I love it.. i am working for AR. but now i got the full flow :-) thanks a lot

    Reply

  79. vibhor
    Sep 05, 2012 @ 13:01:51

    good article

    Reply

  80. kumar
    Oct 18, 2012 @ 12:51:18

    excellent article…very helping

    Reply

  81. devendra
    Oct 18, 2012 @ 21:39:08

    Hi Sir,

    I am devendra. I need latest requirements in forms,reports,xml reports and interfacec, which are faced by a 4 yrs experienced person. Please forward it to my personal mail devendra.apps12@gmail.com.

    Thanks&Regards,
    Devendra.

    Reply

  82. sravanthi
    Oct 23, 2012 @ 18:18:14

    Hi,,this is sravanthi…can any one send me some real time scenarios for 4years experinced profile…..to explain in the interview..if so please send to my mail id “”” hmn.sravi@gmail.com“”””

    Reply

  83. venkatesh v
    Nov 02, 2012 @ 15:28:00

    hai sir,
    just nw completed my B.Tech, am joiningoracle apps pls suggest how to prepare and hw to remember table names,how to improve my knowledge pls telme

    thanking you,
    venkatesh.v

    Reply

  84. azad
    Dec 03, 2012 @ 15:17:03

    very nice explanation for who are new for Apps

    Reply

  85. vinay sawant
    Dec 13, 2012 @ 14:44:04

    SUPERLIKEEEEE……

    Reply

  86. loganathan
    Dec 13, 2012 @ 15:06:29

    Hi,
    could you pls give me information about a2r in oracle apps.

    Reply

  87. k.c.venkatesulu
    Jan 01, 2013 @ 19:59:58

    superb

    Reply

  88. madhavi
    Jan 03, 2013 @ 11:49:19

    Gud explanation. Plz continue posting this type of articles. it helps people like me.

    Reply

  89. Sandy
    Jan 17, 2013 @ 18:12:46

    Hats Off

    Reply

  90. Anil
    Jan 27, 2013 @ 21:44:58

    Very well explained.
    Got good idea.

    Thanks.

    Reply

  91. Sateesh Babu
    Apr 10, 2013 @ 12:40:35

    Hi, this is sateesh, please if anybody send the detailed 3 years experience of real time examples with explanations of reports,xml publisher reports,conversions,interfaces,p2p and o2c and AOL concepts.
    Please send to this email-id “sateesh.ebs@gmail.com”

    Reply

  92. HanmatH PradeeP
    Apr 17, 2013 @ 15:03:49

    Good Explanation, its really useful for freshers in understanding the basic business flow.

    Reply

  93. Karthk
    Jun 05, 2013 @ 14:27:51

    Good.It is very useful for begginers.

    Reply

  94. kiran
    Jul 01, 2013 @ 20:29:13

    Hi Sir,
    I am completed my MCA. I want to learn Oracle Apps Technical. please suggest me how to prepare.
    how to achieve the real time issues

    please give me some guidance…….

    Reply

  95. Divyansh
    Jul 03, 2013 @ 12:21:13

    this is very good for starter….

    Reply

  96. sailaja
    Aug 19, 2013 @ 17:21:49

    Hi sir

    What is the use of profile options? how we are using profiles in real time.

    Reply

    • prudhvi
      Aug 20, 2013 @ 12:20:49

      We have two types of profiles. User profile and System profiles.
      User profiles are used to set user preferences like ‘Default printer’ , ‘color of ERP’ etc.
      System profiles are used to change the behavior of ERP system itself.

      Reply

  97. Md. Delwar Hossain
    Aug 31, 2013 @ 11:51:21

    one day it will be like OTN. we will though questions and experts will explain eleborately with real examples. veryyyyyyyyyyyyyyy nice. I m hopeful on it.

    Reply

  98. ahmad
    Sep 02, 2013 @ 09:39:26

    plz send me inventory end to end cycle.

    Reply

  99. ahmad
    Sep 02, 2013 @ 09:42:41

    i have one query i am create one item that item is belongs the raw material or fineshed good or purchade goods.how to now that.plz let me now.

    Reply

  100. Rambabu
    Sep 02, 2013 @ 14:46:54

    Hi friends… I want real time projects on oracle apps technical if you have please send me to below mail id:rambabu.gajja@gmail.com

    Reply

  101. hunk
    Sep 26, 2013 @ 18:30:12

    Hi I need the Real Time Projects Examples for oracle apps Technical of Reports , Forms , workflow, oaf or interfaces and conversions, obiee etc.Please can you Send it To My Email Id:- mdjaveedaps@gmail.com

    Reply

  102. sudheer
    Sep 30, 2013 @ 23:25:29

    plz tell me end to end process po-interfaces,conversitions

    Reply

  103. nishant
    Oct 15, 2013 @ 17:17:06

    Hi, I am new to Oracle Apps. Please send me some basics doc of Oracle Apps concepts like forms, reports, interfaces and documents relating to various flows like p2p,o2c etc and containing information of base tables of various modules.

    Also could you please guide me on how to approach Oracle Apps.

    Email : nishantbhatia09@gmail.com

    Reply

  104. sreenu
    Oct 17, 2013 @ 11:47:35

    Excellent

    Reply

  105. Ravi
    Oct 26, 2013 @ 22:56:09

    Very nice explanation..Good Start..
    Can i have any docs related to AR stuff

    Reply

  106. hari
    Apr 06, 2014 @ 12:46:04

    hi

    i am trying 4+ on oracle apps,so can u plz send me da realtime examples…..

    hari.alg@gmail.com…plz frwd anybody..

    Reply

  107. Chandru
    Apr 07, 2014 @ 17:33:10

    Clean and clear explanation…

    Reply

  108. Raja
    Apr 11, 2014 @ 21:16:09

    Very Great full Terminology which you provided. for every one It is useful.

    Reply

  109. Mahendra
    Apr 25, 2014 @ 12:46:33

    thq for nice information

    Reply

  110. Adarsha Dharanendra
    May 08, 2014 @ 17:20:45

    Very good ,I got to know clearly

    Reply

  111. Vinod kumar
    Jun 07, 2014 @ 21:15:12

    Hi Team,
    I know oracle forms/reports but want to switch into Oracle Apps techno functional
    Please send the some basic idea flow for Oracle Apps techno functional

    Reply

  112. shub
    Jul 21, 2014 @ 09:52:10

    very good information…..

    Reply

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