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.
Terminology often used in Oracle Applications:
- Invoice
- Receipt
- Customer
- Vendor
- Buyer
- Supplier
- Purchase Order
- Requisition
- ACH: Account Clearance House
- Sales Order
- Pack Slip
- Pick Slip
- Drop Ship
- Back Order
- ASN: Advance Shipping Notice
- ASBN: Advance Shipping Billing Notice
- ATP: Available to Promise
- Lot/Serial Number
- DFF: Descriptive Flex Fields
- KFF: Key Flex Fields
- Value Sets
- Organization
- Business Unit
- Multi Org
- Folders
- WHO Columns
- Oracle Reports
- Oracle Form
- Workflow Builder
- Toad
- SQL Developer
- SQL Navigator
- Discoverer Reports
- XML/BI Publisher
- ADI: Application Desktop Integrator
- Winscp
- Putty
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admin
Excellent article
Its excelent
Excellent
Very Excellent Article!!!
Excellent ……….
very good artical
very good article to understand apps
Very fruitfull info regards for Apps. Excellent example to understand….Keep it up
its very helpful for beginners
good one…thanks for this
very nice its very use full
`excellent article…very helping
v.useful article..thankyou
very good article.
excellent,,,its very useful.,,,it is easier to understand for the beginners
Very help ful info for beginners
very helpful information for the begginers
very helpful information for the beginners
excellent,,,its very useful.,,,it is easier to understand for the beginners
this is excellent for freshers they can understand easily and it is very useful.
thanks……………………….
Very Excellent article
Very useful and Excellent article
VeryusefulandExcellentarticle
Great work done ….explained a complex process in simple words….
Very helpful …
Hi
i found Ur blog while goggling its quite good source on oracle
oracle fussion middleware
very useful for beginners
VERY NICE ARTICAL .
It will be very helpful if you give flow of data in each modul with screenshot like o2c & p2p.
Regards,
Yogita
Really nice one……….very interasting to read and understand…………..
great article, could you recommend an article explaing what jobs different people eg. DBA’s, developer do in the oracle environment. Thanks
excellent article for beginners.
Its a very good startup for the beginners and it helped me in getting good idea about ERP
Very fruitfull info regards for Apps. Excellent example to understand.
Explained a complex process in simple words.
Keep it up.
wow..excellent article..vry helpful..thank u..
Supreb….
no words……excellent explanation
Its very good initiator for our Oracle apps. we are thankful to u.
superb
Its an amasing and simply article whic explains apps in a good flow . very helpfull for the beginners.
thanks
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.
very helpful information for the beginners
Simply goog article ….
thanx for providing clear info abt oracle apps terminilogies..i got some more info in addition to what i got from institution
Very good
Intersting .. way to explain is excellent ….
Manoj kumawat
The article is really worthfull for every oracle EBS user , can you please explain how o2c flows
regards,
Jitendra
wt a example u given superb sir never wu did not get these type of information
good article..good explanation.its very useful to understanding the technical terms in oracle apps…
thank U..
The Very Usefull article for begginers.
thank you so much
wonderfull article …. very usefull for begineer ..!!
thanx indeed !!
Great Article… Maked it look so easy and simple…!!!
Simple way to define a complicated concepts..Very useful. Thanks a lot
Thankq……….This is very useful for me because i’m a beginner of this course thanqs ………………..
Superb Explanation .
Thanks a lot !!!
ya…its very interesting
thank you, Before i dont knw exactly terminalagy ,,nw i got the exact way of business in simple fruit mart to ORGANIZATION level.
Awesome………… I had never seen such good example……thnx
IT IS VERY MUCH HELPFUL FOR BEGINNERS,GOOD EXAMPLE
Excellent article.
For beginners like me……..its very simple to digest oracle apps flow thr this article.
Thanx.!!!
GO AHEAD.!!!!!!!!
Exactly !! What I was looking for………….
Thanks………..
Thanks for the Explanation.
excellent article……………..
NICE EXPLANATION……………..
Really very good explanation. Help to me to understand.
excellent
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
Good article for beginners…
although i am not begineer, but i loved your story.
great job.
Best regards,
Shiva
Awesome post……clear explanation..:)
Thanks alot .
Regards,
Pavan