Oracle Business Suite
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Oracle EBusiness Suite Financials Handbook David James Simon Russell Graham Seibert Oracle Press™ McGrawHill/Osborne New York Chicago San Francisco Lisbon London Madrid Mexico City Milan New Delhi San Juan Seoul Singapore Sydney Toronto McGrawHill/Osborne 2600 Tenth Street Berkeley, California 94710 U.S.A. To arrange bulk purchase discounts for sales promotions, premiums, or fundraisers, please contact McGraw Hill/Osborne at the above address. For information on translations or book distributors outside the U.S.A., please see the International Contact Information page immediately following the index of this book. Copyright © 2002 by The McGrawHill Companies, Inc. (Publisher). All rights reserved. Except as permitted under the Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written permission of Publisher. Oracle is a registered trademark and Oracle11i is a trademark or registered trademark of Oracle Corporation. 1234567890 CUS CUS 0198765432 ISBN 0072132302 Publisher Brandon A. Nordin Vice President & Associate Publisher Scott Rogers Acquisitions Editor Jeremy Judson Project Editor Pamela Woolf Acquisitions Coordinator Athena Honore Technical Editors Oracle Corporation Copy Editors Rachel Lopez, Carl Wikander Proofreader Sossity Smith Indexer Karin Arrigoni Computer Designers George Toma Charbak, Melinda Moore Lytle, Kelly StantonScott
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Transcript of Oracle Business Suite
OracleEBusinessSuiteFinancialsHandbookDavidJames SimonRussell GrahamSeibert
OraclePress McGrawHill/Osborne NewYorkChicagoSanFranciscoLisbonLondonMadridMexicoCityMilanNewDelhiSanJuanSeoulSingaporeSydney Toronto McGrawHill/Osborne 2600TenthStreet Berkeley,California94710 U.S.A. Toarrangebulkpurchasediscountsforsalespromotions,premiums,orfundraisers,pleasecontactMcGraw Hill/Osborneattheaboveaddress.ForinformationontranslationsorbookdistributorsoutsidetheU.S.A.,pleaseseethe InternationalContactInformationpageimmediatelyfollowingtheindexofthisbook. Copyright2002byTheMcGrawHillCompanies,Inc.(Publisher). Allrightsreserved.ExceptaspermittedundertheCopyrightActof1976,nopartofthispublicationmaybereproducedor distributedinanyformorbyanymeans,orstoredinadatabaseorretrievalsystem,withoutthepriorwrittenpermissionof Publisher. OracleisaregisteredtrademarkandOracle11iisatrademarkorregisteredtrademarkofOracleCorporation. 1234567890CUSCUS0198765432 ISBN0072132302 Publisher BrandonA.Nordin VicePresident&AssociatePublisher ScottRogers AcquisitionsEditor JeremyJudson ProjectEditor PamelaWoolf AcquisitionsCoordinator AthenaHonore TechnicalEditors OracleCorporation CopyEditors RachelLopez,CarlWikander Proofreader SossitySmith Indexer KarinArrigoni ComputerDesigners GeorgeTomaCharbak,MelindaMooreLytle,KellyStantonScott
Illustrators MichaelMueller,LyssaWald SeriesDesign JaniBeckwith SeriesCoverDesign DamoreJohannDesign,Inc. ThisbookwascomposedwithCorelVENTURAPublisher. InformationhasbeenobtainedbyPublisherfromsourcesbelievedtobereliable.However,becauseofthepossibilityof humanormechanicalerrorbyoursources,Publisher,orothers,Publisherdoesnotguaranteetotheaccuracy,adequacy, orcompletenessofanyinformationincludedinthisworkandisnotresponsibleforanyerrorsoromissionsortheresults obtainedfromtheuseofsuchinformation. OracleCorporationdoesnotmakeanyrepresentationsorwarrantiesastotheaccuracy,adequacyorcompletenessof anyinformationcontainedinthisWork,andisnotresponsibleforanyerrorsoromissions. AbouttheAuthors DavidJamesisaninformationtechnologyconsultant.HespecializesinfinanceandtheOracleEBusinessSuiteandhas implementedRelease11iinanumberofleadingcorporations. SimonRussellhasworkedforOracleforthelastfouryearsasanApplicationstechnicalconsultant.Hespecializesin solutionarchitectureandcustomization.Hehaspreviousexperienceasasystemsmanagerandbusinessanalyst. GrahamSeibertisafinancialconsultantspecializingintheimplementationofOracleFinancials.Heistheauthorof WorkingwithOracleDevelopmentToolsandOracleDataProcessing:AManager'sHandbook. Acknowledgments Writingabookhasnumerousrewards,thegreatestofwhicharethepeopleyoumeetalongtheway.Ithasbeena pleasureworkingwithourpublishers,ScottRogers,JeremyJudson,JessicaWilson,AthenaHonore,andPamelaWoolf atOraclePress. Thiseditionhasbeenabroadercollaborationthanthefirst.WeareindebtedtoTonyCash,ofOracleCorporation,forso muchofthecontentofChapter11OracleOrderManagement,andtoPaulDean,ofBraunConsulting,forChapter24 OracleFinancialAnalyzer.TheauthorsalsowishtothankPaulDean([email protected])whowithassistance fromMarkHoferleandMarcusThompson,allfromBraunConsulting,Inc.(www.braunconsult.com),contributedthe chapteronOracleFinancialAnalyzer. WemuchappreciatetheassistanceofOracleCorporation,fortheircommentsandadviceonvarioustopics.Specifically, JohnZerbel,LetaDavis,SriniSubramanian,KathleenHelbling,WilliamCurtis,MargaretWong,PaulBerman,Ruthann Enthof,TerryWilliamson,PaulScott,KathrynWohnoutka,IngridVerbruggen,SaumyenduGhosh,SeamusMoran,Helen Shanahan,anLoriBurke. DavidJames SimonRussell GrahamSeibert ThanksfirsttoSimonRussellwho,byagreeingtocoauthorthesecondedition,broughttotheprojectuptodateRelease 11iknowledge,Oraclecentricexperienceandadeeptechnicalunderstanding.IamparticularlykeentothankDavidBrett forhiscontributiontothefirstedition,whichthroughoversightwasnotacknowledgedatthetime.Davidproducedmanyof thescriptsthatreappearinChapter23,"TipsandTricks." IwasparticularlypleasedtogetfeedbackfromSeamusMoranandHelenShanahan,bothofOracle,oneuroaspects. ThisyearhasbeenbusyforeveryoneinvolvedintheeuroandIwouldliketothankthembothfortakingthetimeand troubletoprovideadetailedreview. ThescopeoftheOracleSuiteissufficientlyvastthatnoonecanbeanexpertinallareas.Ihadn'tmyselfbeeninvolvedin asupportcapacityforawhileandknewthatIneededfirsthandproblemsolvingexperiencetoprovidetipsforuseina
booksuchasthis.ThereforeIwasmostpleasedtobesentanarrayoftipsbyPramilaMane,whoiscurrentlyworkingfor Oracleintheirsupportoperation.ThanksPramila. Iwouldespeciallyliketo mentionthosewithwhomIhaveworkedoverthepastfewyears,mostrecentlyShaunBegley andStuartWorthingtonatTiscaliinLondon.IntegratingadozenstartupstobuildEurope'slargestInternetservice providerwasnevergoingtobeeasy.However,withShaun'sdrive,Stuart'spreeminenceintheDBAarena,severalother likemindedindividuals,andacommonplatformbuiltonOracle,itis,atleast,goingtobepossible. EarlierthisyearIhadthepleasuretoworkwithMIServices,aglobalconsultingfirmthatspecializesinOracleProcess Manufacturing.TheycontinuetoapplyanextremelyhighstandardofOracleknowhowandoperateanononsense approachtotheircommercialprojects.ForthisopportunityIthankEddyOsborne,DannyMcDermont,KevinSaunders, andDaveMaughan. MywarmthankstothepeopleImetatThorntonsPlc,inparticularSueEdwardsandMichelleEdgeontheITteam,Dan ShipmanandKateBullinFinance,andPhilHickingwholedtheproject.AtUnitedAgriProductsinYorkshireourgolive datecoincidedwiththeworstofthefootandmouthcrisisintheU.K.Myinvolvementwasshorttermandmuchofthework hadbeencompletedbeforeme,neverthelessIshouldliketothankPaulaNewby,StephenHardy,andStephenNgfor theirsupport. AtEuropcarinParisIwouldliketothankPascalVallerent,BertrandDarrieus,PacoGranero,andMikeDavey.Theyhad theforesighttoadoptaradicalstrategicapproachtotheeuro,andninemonthslatertheirchoicehasbeenprovena success.AlanWalderandFranoisDuflotlaidthegroundworkatEuropcarandcontinuethesuccessatAccord. IadmiretheabilityofDeirdreJoy,ValGay,PaulineLeech,ChrisRichmondandTrevorJonestograspthecomplexityof projectsatConsignia.TheU.K.postalserviceisfortunatetohavesuchfocusedindividualsasitregeneratesitselfasa customerfacingcommercialorganization. InthelasttwoyearsIhavelearnedmostfromsomeonewhoseskillandexperiencegoesbeyondthenarrowconfinesof OracleFinancials.GaryWoodshasbecomeagoodfriend.Hisdisciplinedapproachandprofessionalrigorhavesaved thedayonmanyoccasions.IwouldliketothankalsoTimLiddell,workingatAccenture,forkeepingmeabreastof commercialdevelopmentsintheERPworldoutsideofOracleandtomybrotherDorienJames,nowatCapitalOne,for hisunfailingabilitytoprovideinformedinsightonallkindsofsubjects. FinallythisbookisformyfamilyJane,Julia,VictoriaandTanya,AnneandDorienandBranwen. DavidJames London October,2001 IhavefoundthatworkingforOracleyouareamongagroupofcharacterswhoareprofessionalbutfunandapproachable withit.Theyarehappytosharetheirknowledgeandexperience.Thishelpsmakelightworkofeventhemostdemanding projectsituations.IamthankfultomyOraclepracticemanagersovertheyears,mostparticularlyAndrewMoore,David Cosh,andLizSinclairfortheiradviceandsupport. Ihavebeenluckyenoughtoworkwithandbementoredbysomeexceptionalindividuals.JonLevyhasgivenmemany opportunitiesandtheconfidencetotakethemGaryWoodsguidedthePostOfficePropertyHoldingsProjectastutelyand successfullyMalveenMangatatRailtrackshowedhowmeticulousattentiontodetailsavestimeandassuresaresult RamezYounanandSarahPenngavetheOracleFoundationteamsolidityanddependabilityJohnLongmanatJarvis demonstratedthepowerofdisciplineandmethod. Whenagroupofpeopleturnsintoateam,theworktheycancompleteisstaggering.TheinteractionbetweenOracle, clientandpartnerorganizationsprovidesafertilegroundforlearningandIwouldliketothankallthosetoonumerousto mentionherewithwhomIhaveworked.InparticularImustsingleoutthoseatJarvisfortheirpatience,asmyforayinto writingcoincidedwithaverytightprojectschedule.Mydevelopmentteamtherewasamodelprofessionalunitwho performedallthatwasaskedofthem. Finally,thankstoDavidJamesforallowingmetojoininthefun(andmakingitso),GrahamSeibertforhavingdoneallthe hardworkwellinthefirstedition,andtomyfamilyandfriendsforrememberingthatIamstillaliveeveniftheydon'tsee me:Ihavereallyappreciatedyoubeingthereforme. SimonRussell London October,2001
ThegreatestrewardtocomeoutofthefirsteditionofthisbookwasgettingtoknowDavidJames.Hissteadyhandand goodhumourkeptthissecondeditiononcourse,inadditiontowhichhehadthewisdomtoaskSimontojoinus. ThanksEdgarKline,withoutwhoseexcellentDBAsupportitwouldhavebeenimpossibletoimplementthesystems describedhere,andtoDanHinkleandSteveO'HearnofMontreaConsulting.Itishardtosumupbuteasytoappreciate allthatgoesintogoodmanagement.ThanksalsotoAndreaRosarioforherencouragementandsupport. GrahamSeibert Bethesda,Maryland October,2001
TableofContentsOracleEBusinessSuiteFinancialsHandbook .................................................................................................... 1 Introduction .............................................................................................................................................................21 Overview ...................................................................................................................................................................21 AboutThisBook .......................................................................................................................................................22 NewinThisEdition...............................................................................................................................................22 WhoShouldReadThisBook? ............................................................................................................................22 OrganizationofThisBook ...................................................................................................................................22 TopicsthatAreNotCovered ...............................................................................................................................23 AboutOracleCorporation........................................................................................................................................23 TheOracleRDBMS..............................................................................................................................................24 TheOracleApplicationServer ............................................................................................................................25 OracleProgrammingTools..................................................................................................................................25 DataWarehouseDirections.................................................................................................................................26 TheFutureDirectionofOracleApplications ......................................................................................................26 ReasonsforChoosingOracleApplications........................................................................................................27 UseThisBookforaSuccessfulFinancialsImplementation.................................................................................28 EstablishaPlan ....................................................................................................................................................28 UnderstandtheCompany'sBusinessPractices................................................................................................28 UnderstandtheApplicationsSuite......................................................................................................................29 GettheNeededLevelofCommitmentfromUsers............................................................................................29 StafftheJobRight,andGiveItTime..................................................................................................................29 BePragmatic ........................................................................................................................................................30 HowtoGetMaximumValuefromtheApplications ...........................................................................................30 Conclusion ................................................................................................................................................................30 PartI:GettingStarted............................................................................................................................................30 ChapterList...............................................................................................................................................................31 Chapter1:AnOverviewoftheEBusinessSuite......................................................................................................31
Overview ...................................................................................................................................................................31 TheStructureandScopeoftheEBusinessSuite................................................................................................31 AccountingMethods.............................................................................................................................................34 OperationalControl ..............................................................................................................................................35 ThePackageFamilies..........................................................................................................................................35 TheBenefitsofImplementingOracleEBusinessSuite .......................................................................................36 WhatAreYourObjectives?SettingParametersandExpectations .....................................................................36 ReengineerNoworLater?................................................................................................................................36 Conclusion ................................................................................................................................................................37 Chapter2:ImplementingtheEBusinessSuiteEssentialConcepts ....................................................................37 Overview ...................................................................................................................................................................37 CapturingtheFinancialInformationRelevanttoYourBusiness..........................................................................37 Flexfields ...............................................................................................................................................................38 Workflow................................................................................................................................................................43 AccountingforTransactions ................................................................................................................................44 MeetingtheVariedNeedsofComplexOrganizations ..........................................................................................46 TheOrganizationalModelWithinOracleEBusinessSuite..............................................................................46 FinancialsintheGlobalBusinessesEnvironment ................................................................................................49 CreatingaModelofYourBusiness ....................................................................................................................49 GlobalFinancialApplications ..............................................................................................................................50 Conclusion ................................................................................................................................................................52 PartII:TheFinancialApplications......................................................................................................................52 ChapterList...............................................................................................................................................................52 Chapter3:OracleGeneralLedger .............................................................................................................................52 Overview ...................................................................................................................................................................52 TheHeartofYourAccountingSystem ...................................................................................................................53 OverviewofGeneralLedger................................................................................................................................54 IntegrationwithOtherFinancialsModules .........................................................................................................59 GeneralLedgerSetup..........................................................................................................................................68 AccountingFlexfieldDesignBestPractice..........................................................................................................73 WhattoConsider..................................................................................................................................................73 GoodDesignPrinciples .......................................................................................................................................79 WhattoAvoid........................................................................................................................................................81 GeneralLedgerReporting .......................................................................................................................................82 FinancialStatementGenerator ...........................................................................................................................82
OracleFinancialAnalyzer....................................................................................................................................87 TheApplicationsDesktopIntegrator(ADI).........................................................................................................88 OracleGeneralLedgerDataModel....................................................................................................................88 ConversionfromLegacySystems ......................................................................................................................90 Conclusion ................................................................................................................................................................92 Chapter4:BudgetingandAllocations........................................................................................................................93 Overview ...................................................................................................................................................................93 DifferencesBetweenFinancialandManagementAccounting.............................................................................93 TheLimitationsofFinancialAccounting.............................................................................................................93 DifferentTypesofReports...................................................................................................................................93 BridgingtheGap...................................................................................................................................................94 Budgeting ..................................................................................................................................................................94 TheBudgetingProcess........................................................................................................................................94 BudgetaryControlforNonprofitOrganizations..................................................................................................95 TypesofBudgets..................................................................................................................................................95 Allocations.................................................................................................................................................................96 AllocationFormulas..............................................................................................................................................97 AutoAllocationsWorkbench.................................................................................................................................98 Conclusion ................................................................................................................................................................98 Chapter5:OraclePayables ........................................................................................................................................98 Overview ...................................................................................................................................................................98 PurposesofaPayablesSystem .............................................................................................................................99 InnovativeUsesofOraclePayables...................................................................................................................99 AnOverviewofPayablesinYourBusiness.........................................................................................................101 TimingYourLiability ...........................................................................................................................................101 ThePayablesWorkflow .....................................................................................................................................102 ThePayablesCycle ...........................................................................................................................................103 SupplierData ......................................................................................................................................................109 AccountingMethods...........................................................................................................................................111 AccountingEntriesforPayablesTransactions ................................................................................................111 IntegrationwithOtherFinancialsModules .......................................................................................................113 TheOraclePayablesDataModel .....................................................................................................................115 Conclusion ..............................................................................................................................................................118 Chapter6:OracleReceivables .................................................................................................................................119 OracleReceivablesandYourARBusinessProcesses......................................................................................119
iReceivables........................................................................................................................................................121 CreatingandManagingtheCustomerDatabase ................................................................................................121 CustomerProfiles ...............................................................................................................................................122 TheCustomerAccount ......................................................................................................................................123 BusinessPurposes.............................................................................................................................................124 Transactions ...........................................................................................................................................................124 Invoices ...............................................................................................................................................................124 TaxConsiderations ............................................................................................................................................125 AutomaticAccountGeneration..........................................................................................................................126 PrintingTransactions..........................................................................................................................................127 DebitMemos.......................................................................................................................................................128 CreditMemos......................................................................................................................................................128 Receipts...............................................................................................................................................................129 Adjustments ........................................................................................................................................................133 Commitments......................................................................................................................................................134 RefundstoCustomers .......................................................................................................................................135 TransfertoDoubtfulDebt ..................................................................................................................................136 CustomerFollowUp ..............................................................................................................................................137 CustomerCalls ...................................................................................................................................................137 DunningLetters ..................................................................................................................................................137 Statements ..........................................................................................................................................................141 IntegrationwithOtherModules .............................................................................................................................142 OrderManagement ............................................................................................................................................142 Projects................................................................................................................................................................143 Inventory..............................................................................................................................................................143 GeneralLedger...................................................................................................................................................143 ReceivablesOpenInterfaces ............................................................................................................................143 TheReceivablesDataModel ............................................................................................................................144 AdvancedFeatures ................................................................................................................................................147 TheCustomerAccountandBalanceDue........................................................................................................148 Reconciliation......................................................................................................................................................149 ThePurgeFeature .............................................................................................................................................149 ReceivablesConversionIssues ........................................................................................................................150 Conclusion ..............................................................................................................................................................152 Chapter7:OracleCashManagement......................................................................................................................152
Overview .................................................................................................................................................................152 TheNeedforCashManagement..........................................................................................................................153 BankReconciliation............................................................................................................................................154 BankStatementInterfaceCaseStudy .............................................................................................................156 CashForecasting ...............................................................................................................................................161 CashManagementInterfaces ...............................................................................................................................163 TheReconciliationOpenInterface....................................................................................................................163 TheForecastingOpenInterface .......................................................................................................................163 TheCashManagementDataModel.....................................................................................................................164 Conclusion ..............................................................................................................................................................164 Chapter8:OracleAssets ..........................................................................................................................................165 Overview .................................................................................................................................................................165 RegisteringandTrackingAssets ..........................................................................................................................165 TheAssetAdditionsCycle.................................................................................................................................165 TaggingwithAssetIdentifiers ...........................................................................................................................166 TheAssetKeyFlexfield .....................................................................................................................................167 TheLocationFlexfield ........................................................................................................................................167 TheCategoryFlexfield.......................................................................................................................................168 Depreciation............................................................................................................................................................169 LedgerAccounting..............................................................................................................................................169 BusinessTaxesandtheNeedforMultipleAssetBooks ................................................................................170 DepreciationMethods ........................................................................................................................................171 LeasedAssets ........................................................................................................................................................175 CapitalBudgeting ...................................................................................................................................................175 ConvertingtoOracleAssets..................................................................................................................................175 ConvertingTaxBooks........................................................................................................................................177 TradeoffsBetweenRecordkeepingandReporting ............................................................................................177 Conclusion ..............................................................................................................................................................178 Chapter9:OraclePurchasing...................................................................................................................................178 PurchasingOverview .............................................................................................................................................178 Requisitions ............................................................................................................................................................179 Suppliers .................................................................................................................................................................180 SupplierRelationships .......................................................................................................................................180 CommunicatingwithSuppliers ..........................................................................................................................185 TheImplicationsofMultiOrg ................................................................................................................................187
MultipleOrganizationsinInventory...................................................................................................................187 Receiving ................................................................................................................................................................187 Exceptions...........................................................................................................................................................188 ReceiptRouting ..................................................................................................................................................188 DropShipmentReceipts....................................................................................................................................188 ProductivityversusSecurity ..............................................................................................................................189 PaymentonReceipt...........................................................................................................................................189 IntegrationwithOtherModules .............................................................................................................................189 PayablesIntegration...........................................................................................................................................190 ProjectsIntegration ............................................................................................................................................190 OrderManagementIntegration .........................................................................................................................191 InventoryIntegration...........................................................................................................................................191 AccountingIssues ..................................................................................................................................................191 AverageandStandardCosting .........................................................................................................................191 AccrualAccounts................................................................................................................................................192 AutomaticAccountGeneration..........................................................................................................................192 Implementation .......................................................................................................................................................193 ConvertingtheVendorMaster ..........................................................................................................................193 ConvertingTransactions....................................................................................................................................193 ConvertingPurchasingHistory..........................................................................................................................194 Testing.................................................................................................................................................................194 Customization .....................................................................................................................................................195 Conclusion ..............................................................................................................................................................195 Chapter10:OracleInventory ....................................................................................................................................195 OverviewofInventory ............................................................................................................................................196 IntegrationwithOtherModules .............................................................................................................................197 ItemSetup...............................................................................................................................................................197 ItemNumbers .....................................................................................................................................................197 Attributes .............................................................................................................................................................198 Revisions.............................................................................................................................................................203 BillsofMaterial ...................................................................................................................................................203 GroupingItems .......................................................................................................................................................204 CategoriesandCategorySets ..........................................................................................................................204 Catalogs ..............................................................................................................................................................206 IssuesofVolume ................................................................................................................................................206
PhysicalStorageandManagement......................................................................................................................207 InventoryOrganizations .....................................................................................................................................207 Subinventories ....................................................................................................................................................208 Locators...............................................................................................................................................................208 LotProcessing ....................................................................................................................................................209 SerialNumberProcessing .................................................................................................................................209 Balances..............................................................................................................................................................210 Counting ..............................................................................................................................................................210 ForecastingandDemand ..................................................................................................................................214 IndustryEffortstoImproveStockMovement.......................................................................................................215 Kanban ................................................................................................................................................................216 WarehouseMovements .....................................................................................................................................217 ConversionIssues..................................................................................................................................................217 ItemMasterConversion.....................................................................................................................................217 TransactionConversion .....................................................................................................................................218 LocationConversion...........................................................................................................................................218 AccountingEntriesforInventoryTransactions ....................................................................................................220 AdditionalAccountingTransactions..................................................................................................................221 Variances ............................................................................................................................................................222 AverageversusStandardCosting ....................................................................................................................223 NonmaterialExpenseCollection .......................................................................................................................223 SettingStandardCosts ......................................................................................................................................224 TheCostingTables ............................................................................................................................................226 DeterminingSalesPrices...................................................................................................................................228 ProjectManufacturing ........................................................................................................................................228 INTRASTATReporting.......................................................................................................................................228 ActivityBasedCosting .......................................................................................................................................229 PlanningandDebuggingCostTransactions....................................................................................................229 OperationofOracleInventory ...............................................................................................................................230 Responsibilities...................................................................................................................................................230 InterfaceManagerProcessing ..........................................................................................................................230 ArchivingandDeletingData ..............................................................................................................................231 AdvantagesofanOpenDesign ............................................................................................................................231 Conclusion ..............................................................................................................................................................232 Chapter11:OracleOrderManagement...................................................................................................................232
Overview .................................................................................................................................................................232 OMSetups ..............................................................................................................................................................234 DefaultingRules .................................................................................................................................................234 FunctionalDifferences .......................................................................................................................................234 AttributesandEntitiesinOrderManagement ..................................................................................................235 DependenciesAmongAttributes.......................................................................................................................235 SourcesofValues ..............................................................................................................................................235 ProcessingConstraints ......................................................................................................................................236 FunctionalDifferences .......................................................................................................................................236 Migration/UpgradefromSecurityRules............................................................................................................237 WorkflowIntegration...........................................................................................................................................237 Migration/UpgradefromOrderTypes...............................................................................................................237 The11iCustomerModel .......................................................................................................................................237 ASingleSourceofTruth....................................................................................................................................238 ThePartyConcept..............................................................................................................................................238 CustomerAgreements .......................................................................................................................................240 SalesCredits.......................................................................................................................................................241[1] UsingCreditCardsinOracleOrderManagement ............................................................................................241
RiskManagement...............................................................................................................................................242 OracleConfiguratorDeveloper .............................................................................................................................242 ItemsinOrderManagement..............................................................................................................................244[2] EnhancedScheduling .........................................................................................................................................246
AvailabletoPromise ..........................................................................................................................................246 ShipmentScheduling .........................................................................................................................................246 SpecificOrderTypes..............................................................................................................................................248 InternalSalesOrders .........................................................................................................................................248 DropShipment....................................................................................................................................................248 ReturnMaterialAuthorizations(RMAs) ............................................................................................................249 OracleReleaseManagement................................................................................................................................250 DemandManagementFlow ..............................................................................................................................250 OracleShipping ......................................................................................................................................................251 PickRelease .......................................................................................................................................................253 MoveOrders .......................................................................................................................................................253 ShippingTolerances...........................................................................................................................................254 FreightCosts.......................................................................................................................................................254
ShippingExceptions...........................................................................................................................................255 EuropeanReporting ...........................................................................................................................................255 UPSIntegration ..................................................................................................................................................255 Containers...........................................................................................................................................................255 Pricing......................................................................................................................................................................256 OracleAdvancedPricing ...................................................................................................................................257 PriceListElements.............................................................................................................................................257 MaintainingPriceLists .......................................................................................................................................258 GSAPricing.........................................................................................................................................................258 MulticurrencyPricing..........................................................................................................................................258 OMKeyFeatures ...................................................................................................................................................258 CrossReferences...............................................................................................................................................258 CustomerItems ..................................................................................................................................................259 DecimalQuantityOrdering ................................................................................................................................259 FolderenabledForms........................................................................................................................................259 AutomaticAttachments ......................................................................................................................................259 Notifications.........................................................................................................................................................259 ProcessMessages .............................................................................................................................................259 MassChange/OtherFunctionality.....................................................................................................................260 IntegrationwithOrderCapture ..........................................................................................................................260 OrderPurge ........................................................................................................................................................260 Accounting ..............................................................................................................................................................260 IntegrationwithOtherModules .............................................................................................................................261 IntegrationwithReceivables..............................................................................................................................261 IntegrationwithInventory...................................................................................................................................261 IntegrationwithPurchasing ...............................................................................................................................262 ConversionIssues..................................................................................................................................................262 OrderImport........................................................................................................................................................262 Responsibilities.......................................................................................................................................................262 Conclusion ..............................................................................................................................................................263 Chapter12:ForeignCurrencyOperations...............................................................................................................263 Overview .................................................................................................................................................................263 MulticurrencyAccounting.......................................................................................................................................264 ForeignCurrencyTransactions.........................................................................................................................264 Revaluation .........................................................................................................................................................265
Conversion ..........................................................................................................................................................265 BalanceTranslation............................................................................................................................................265 TheEuro..................................................................................................................................................................266 ReportinginMultipleCurrencies...........................................................................................................................267 MultipleReportingCurrencies(MRC)...............................................................................................................267 123EFC............................................................................................................................................................267 MRCandGLTranslationTheDifference ......................................................................................................268 MigrationtotheEuro..............................................................................................................................................268 AccountInquiryinEitherPrimaryorReportingCurrency ...............................................................................269 OneStepSubledgerProcessing.......................................................................................................................269 Conclusion ..............................................................................................................................................................269 Chapter13:OracleSelfServiceWebApplications.................................................................................................269 Overview .................................................................................................................................................................269 Oracle'sVisionandDirection ................................................................................................................................270 OracleSelfServiceWebApplicationsArchitecture ............................................................................................270 InternetProcurement..........................................................................................................................................271 OracleSelfServiceTimeandSelfServiceExpenses ....................................................................................274 OracleiReceivables ...........................................................................................................................................275 ImplementationConsiderations.........................................................................................................................275 OtherSelfServiceWebApplications................................................................................................................276 Conclusion ..............................................................................................................................................................277 Chapter14:OracleProjects......................................................................................................................................277 Overview .................................................................................................................................................................277 Setup .......................................................................................................................................................................278 OrganizationSetup.............................................................................................................................................278 Costing ....................................................................................................................................................................283 Billing .......................................................................................................................................................................286 IntercompanyProjects ...........................................................................................................................................288 InterprojectBilling ...............................................................................................................................................288 AutoAccounting ......................................................................................................................................................289 ProjectProcessingCycle.......................................................................................................................................291 Reporting.................................................................................................................................................................291 IntegrationwithOtherModules .............................................................................................................................293 ClientExtensions....................................................................................................................................................298 DataConversion.....................................................................................................................................................299
Conclusion ..............................................................................................................................................................299 Chapter15:OracleWorkflowandtheImplementationWizard ..............................................................................300 Overview .................................................................................................................................................................300 WorkflowArchitecture ............................................................................................................................................300 WorkflowUserClientTier ..................................................................................................................................300 ApplicationServerTier.......................................................................................................................................301 OracleServerTier ..............................................................................................................................................301 EmbeddedorStandalone ..................................................................................................................................303 UsingWorkflow...................................................................................................................................................303 PrebuiltWorkflows..............................................................................................................................................308 WizardOverview ....................................................................................................................................................308 WhyYouNeedaWizard....................................................................................................................................308 UsingtheImplementationWizard .....................................................................................................................309 Conclusion ..............................................................................................................................................................309 Chapter16:NewApplicationsinRelease11i .........................................................................................................310 Overview .................................................................................................................................................................310 OraclePropertyManager ......................................................................................................................................310 AnOverviewofPropertyManagement.............................................................................................................310 IntegrationwithOtherApplications ...................................................................................................................315 OracleTreasury......................................................................................................................................................317 AnOverviewofTreasuryOperations................................................................................................................317 IntegrationwithOtherApplications ...................................................................................................................319 MarketDataFeed...............................................................................................................................................320 BusinessIntelligenceSystem................................................................................................................................320 Architecture.........................................................................................................................................................320 Conclusion ..............................................................................................................................................................323 PartIII:ManagingandCustomizinganApplicationsEnvironment............................................................323 ChapterList.............................................................................................................................................................324 Chapter17:TheOracleFinancialsEnvironment ....................................................................................................324 Overview .................................................................................................................................................................324 OnlineOperations ..................................................................................................................................................325 QueryMode ........................................................................................................................................................325 DataentryMode.................................................................................................................................................326 Messages............................................................................................................................................................326 NavigationandSpecialFunctionsinForms.....................................................................................................327
DisplayFormats..................................................................................................................................................327 MultipleOpenWindows .....................................................................................................................................328 BatchOperations....................................................................................................................................................329 TheConcurrentManager...................................................................................................................................329 ConcurrentProgramParameters......................................................................................................................331 RequestSets ......................................................................................................................................................332 PrintingandOtherMeansofOutput .................................................................................................................332 Flexfields .................................................................................................................................................................333 KeyFlexfields......................................................................................................................................................334 DescriptiveFlexfields .........................................................................................................................................335 Contexts ..............................................................................................................................................................335 FlexfieldValidation .............................................................................................................................................336 FlexfieldSecurity ................................................................................................................................................337 FlexfieldDefinition ..............................................................................................................................................337 NationalLanguageSupport(NLS)........................................................................................................................339 AOLlevelLanguageDetermination..................................................................................................................339 NationalLanguageSupportforReports...........................................................................................................339 NationalLanguageSupportforFlexfields ........................................................................................................340 NationalLanguageinData ................................................................................................................................340 Alerts .......................................................................................................................................................................340 ApplicationManagement .......................................................................................................................................341 UsersandResponsibilities ................................................................................................................................341 Security................................................................................................................................................................342 Instances .............................................................................................................................................................343 FileStorage.........................................................................................................................................................345 QuickcodesandLookupTypes.........................................................................................................................346 ManagingtheApplicationsEnvironment..............................................................................................................347 MultipleEnvironmentsforDevelopment...........................................................................................................347 MultipleUseoftheApplicationsinProduction.................................................................................................348 MultiOrg..............................................................................................................................................................348 ProfileOptions ........................................................................................................................................................349 Oracle'sApplicationImplementationMethodology(AIM) ...................................................................................350 HardwareConsiderations ......................................................................................................................................350 Conclusion ..............................................................................................................................................................351 Chapter18:OracleApplicationsTechnicalArchitecture ........................................................................................351
Overview .................................................................................................................................................................351 Release11iTheEBusinessSuite.....................................................................................................................352 ArchitectureComponents ......................................................................................................................................352 TheClientTier ....................................................................................................................................................353 TheApplicationsTier..........................................................................................................................................353 TheDatabaseTier..............................................................................................................................................354 CommunicationsforEachTypeofSession .....................................................................................................355 MappingtheArchitecturetoHardware .............................................................................................................355 DatabaseServerSizing:YourProcessor,Memory,andDiskSpace ............................................................356 WindowsandUNIXOperatingSystems...........................................................................................................358 BaseSoftwareandCommunicationTechnologies..............................................................................................361 TheTransitiontoGlobalInstallations ...................................................................................................................361 TimeZones .........................................................................................................................................................362 SupportAdvancesandTools ................................................................................................................................362 PlatinumVersions...............................................................................................................................................362 OracleEnterpriseManager................................................................................................................................362 BackupsandCloningEnvironments.................................................................................................................363 Conclusion ..............................................................................................................................................................363 Chapter19:Security ..................................................................................................................................................363 Overview .................................................................................................................................................................363 ArchitectureoftheFinancials................................................................................................................................364 TheUniverseofThreats ........................................................................................................................................367 UnauthorizedActivitybyAuthorizedUsersoftheApps..................................................................................367 UnauthorizedUsersoftheOracleApplications ...............................................................................................367 PhysicalSecurityThreats ..................................................................................................................................367 DamageCausedbyFraudulentUsers .............................................................................................................368 ThreatsOutsideoftheOracleApplications......................................................................................................368 RDBMSLevelCompromise...............................................................................................................................369 DesktopLevelSecurityConsiderations............................................................................................................370 DevelopmentandProductionEnvironments....................................................................................................370 NetworkLevelCompromises.............................................................................................................................370 Countermeasures...................................................................................................................................................371 SecurityPolicyDefinition ...................................................................................................................................371 AccessControlPolicies .....................................................................................................................................372 ControlofInternetAccess .................................................................................................................................373
AnOverviewofPublicKeyCryptography ........................................................................................................373 ImplementationofPublicKeyCryptography....................................................................................................375 VirtualPrivateNetworks(VPNs) .......................................................................................................................377 StrongAuthentication.........................................................................................................................................378 VirusThreats.......................................................................................................................................................378 HackerCountermeasures..................................................................................................................................378 Conclusion ..............................................................................................................................................................379 Chapter20:CustomizationandModification...........................................................................................................380 Overview .................................................................................................................................................................380 AnticipatingandPlanningCustomizationsandModifications ............................................................................381 RisksandCostsinCustomization ....................................................................................................................381 TheFrameworkforModifications......................................................................................................................383 CustomOutput....................................................................................................................................................390 OverviewoftheOpenInterfaces.......................................................................................................................396 PopulatingtheOpenInterfaces.........................................................................................................................397 ScriptsforInsertingRowsintoStandardTables..............................................................................................399 UpdatingStandardTables .................................................................................................................................402 UsingDescriptiveFlexfields ..............................................................................................................................403 CustomizingWorkflows......................................................................................................................................406 CustomForms ....................................................................................................................................................406 Messages............................................................................................................................................................407 PerformanceTuning...........................................................................................................................................408 TheAnalysisProcess ............................................................................................................................................410 UserReferenceManuals ...................................................................................................................................410 TechnicalReferenceManuals(TRMs) .............................................................................................................410 ReadingCode.....................................................................................................................................................410 LaboratoryMethod .............................................................................................................................................411 DetailedTableAnalysis .....................................................................................................................................411 RegressionTesting ................................................................................................................................................413 UsingaRegressionTesterforMassUpdates .................................................................................................414 DocumentControl ..................................................................................................................................................414 LogMaintenance ................................................................................................................................................414 ConfigurationManagement ...............................................................................................................................418 Conclusion ..............................................................................................................................................................419 Chapter21:ProjectOrganizationandManagement .........................................................................................419
Overview ................................................................................................................................................................419 OracleSoftwareasaStepTowardCorporateMaturity ................................................................................420 SpreadsheetsversusProjectManagementSoftware.........................................................................................421 DevelopingtheProjectPlan...............................................................................................................................422 TheProjectBudget ..............................................................................................................................................424 TheProjectManagementHierarchy .................................................................................................................425 TeamFormation .....................................................................................................................................................426 FunctionalTeamLeads .....................................................................................................................................427 DatabaseAdministrator .....................................................................................................................................428 Programmers ......................................................................................................................................................428 SourcesofStaffing ..............................................................................................................................................429 StaffSize ................................................................................................................................................................430 TypesofContracts...............................................................................................................................................430 ProjectPhasing ....................................................................................................................................................431 ManagingYourRelationshipwithOracle .............................................................................................................432 OracleReleasesandVersions..........................................................................................................................432 ResolvingErrors:iTARsandPatches ..............................................................................................................433 ManagingBugFixes...........................................................................................................................................434 ReferenceSourcesforOracleApplications .........................................................................................................434 ApplicationsUserReferences ...........................................................................................................................435 AOLReferences .................................................................................................................................................435 OnlineHelpWithintheApplications..................................................................................................................436 ApplicationsTechnicalReferences...................................................................................................................436 OracleToolsandRDBMSReferences.............................................................................................................436 ThirdpartyOracleReferences ..........................................................................................................................437 OperatingSystemReferences ..........................................................................................................................437 User'sGroupMaterials ......................................................................................................................................437 ManagingImplementationActivities .....................................................................................................................437 TheSolutionDefinition.......................................................................................................................................438 WrittenBusinessProcedures ............................................................................................................................439 Testing.............................................................
