Apr 172011


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

  111 Responses to “Technical Terms in Oracle Apps explained through real time example”

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

  2. Clean and clear explanation…

  3. hi

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

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

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

  5. Excellent

  6. 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

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

  8. 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

  9. 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

  10. 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.

  11. plz send me inventory end to end cycle.

  12. 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.

  13. 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.

  14. Hi sir

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

  15. this is very good for starter….

  16. Please send email to training@erpschools.com

  17. 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…….

  18. Good.It is very useful for begginers.

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

  20. 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”

  21. Very well explained.
    Got good idea.


  22. Hats Off

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

  24. superb

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


  27. very nice explanation for who are new for Apps

  28. 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,

  29. 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“”””

  30. 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.


  31. excellent article…very helping

  32. good article

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

  34. Really Awesome for Beginers…Gr8 Doc

  35. Nice!! Good real time examples!

  36. Very Good Article

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

  37. Its really awesome….

  38. Thanx,very nice article for beginers
    Excellent perception of author

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

    Thanks alot.

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

  41. Amazing explained

  42. superb explanation . thanx

  43. Simply Superb…Thank U so much sharing valuable information

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


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

    Best regards,

  46. Good article for beginners…

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

  48. excellent

  49. Really very good explanation. Help to me to understand.


  51. excellent article……………..

  52. Its excelent

  53. Thanks for the Explanation.

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

  55. Excellent article.

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

    GO AHEAD.!!!!!!!!


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

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

  59. ya…its very interesting

  60. Superb Explanation .
    Thanks a lot !!!

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

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

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

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

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

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

    thank U..

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

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


  69. Intersting .. way to explain is excellent ….

    Manoj kumawat

  70. Very good

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

  72. Simply goog article ….

  73. very helpful information for the beginners

  74. 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.

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


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

  77. no words……excellent explanation

  78. Supreb….

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

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

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

  82. excellent article for beginners.

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

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

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


  86. very useful for beginners

  87. Very helpful …

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

  89. VeryusefulandExcellentarticle

  90. Very useful and Excellent article

  91. Very Excellent article

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


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

  94. very helpful information for the beginners

  95. very helpful information for the begginers

  96. Very help ful info for beginners

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

  98. very good article.

  99. v.useful article..thankyou

  100. `excellent article…very helping

  101. very nice its very use full

  102. good one…thanks for this

  103. its very helpful for beginners

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

  105. very good article to understand apps

  106. very good artical

  107. Excellent ……….

  108. Very Excellent Article!!!

  109. Excellent

  110. Excellent article

 Leave a Reply



You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code class="" title="" data-url=""> <del datetime=""> <em> <i> <q cite=""> <strike> <strong> <pre class="" title="" data-url=""> <span class="" title="" data-url="">