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(pdean@braunconsult.com)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.............................................................