Oracle Procure to Pay Life Cycle:

Procure to Pay Process flow:

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Let’s see the steps involved in performing using Oracle Applications

1. Oracle Purchasing: You enter Suppliers of different materials and products you want to purchase to manufacture a finished good that your organization plans to sell.

2. Oracle Purchasing: You prepare a Request for Quotation (RFQ) and send it to different suppliers to get the best and/or economical price for the product.

3. Oracle Purchasing:Suppliers sends their quotations and you upload those quotations in Oracle Purchasing to get the best three quotes and further to get the one best quote.

4. Oracle Purchasing: You prepare a Purchase Order(PO) against the best RFQ to buy the goods from the supplier who quoted the suitable price and sends the PO to that supplier

5. Oracle Purchasing: The supplier receives the confirmation of purchase from PO and ships the ordered goods. You receive the goods enter a Goods Received Note (GRN) in Oracle Purchasing.

6. Oracle Inventory:It’s upto you whether you want to receive the goods at your head office or you Inventory directly. In either case you move the received goods to your different Raw Material Inventory from Oracle Purchasing to Oracle Inventory and the Item Count increases.

7. Oracle General Ledger: Once you move the goods to Oracle Inventory, it sends the Material Accounting to Oracle General Ledger.

8. Oracle Payables: After that the supplier sends you the invoice for the purchased goods and you Enter or Match the invoice against the PO from Oracle Purchasing in Oracle Payables.

9. Oracle General Ledger: When you enter the invoice it means that you have created a Liability against that supplier.

10. Oracle Payables: You pay the invoice and settle the Liability

11. Oracle General Ledger: The liability is settled, your expense is recorded.

12. Oracle Process Manufacturing(OPM) / Oracle Discrete Manufacturing(ODM):

You start the manufacturing of your final product. Both OPM or ODM requests the different raw materials from you inventory organizations and manufactures a finished good.

13. Oracle Inventory: As the raw materials are issued to OPM and ODM the inventory sends the issuing material accounting to General Ledger and decreases the Item Count from the Raw Material Store. As the finished good is prepared, Oracle Inventory receives the finished good in Finished Good Store and increase the Item Count.

Payables Intergration:

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Payables Processes:

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Overview of Suppliers:

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When you enter a supplier that does business from multiple locations, you enter header information only once, and you enter supplier sites for each location. Most supplier information defaults to supplier sites. However, you can override the values that default if necessary. After you define suppliers, you can use them when you import/enter invoices and create purchasing documents

Define how supplier sites can be used with the following options:

• Pay - You can import/enter invoices for and make payments to the site.
• Primary Pay - Default pay site for invoice entry and import.
• Purchasing - You can create purchase orders for the site.
• RFQ Only - You can create request for quotations in Purchasing for the site. You cannot
create purchase orders for an RFQ Only site.
• Procurement Card - You can purchase goods or services using a procurement card.
• Primary Pay - If a supplier has multiple pay sites, one can be designated as the primary.

The primary pay site defaults in the Invoices window, helping to speed the invoice entry
process. Also, Payables Open Interface Import uses this site when it imports an external
invoice with no specified site.

Designate a site as an RFQ Only site during the beginning of negotiations with a supplier. If you decide to use the supplier, designate the supplier site as a Purchasing site by deselecting the RFQ Only option and selecting the Purchasing Site option. For each supplier site, you can enter contact information (name, address, telephone) specific to that site. Contact information is for your reference only.

Flow of Default Values(P2P):

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• Defaults set at higher levels flow down to lower levels where you can override them.
• Defaults reduce data entry by providing default values based on corporate policy.
Optional defaults (especially the higher level ones) should be left blank if you frequently
override them.
• Purchase order matched invoices will receive defaults from the purchase order you specify when you match.
Note: Changes to default values affect only new records, not existing records. For example, if
payment terms in the Payables Options window are reset to Net 15 from Net 30, new suppliers
will have a default of Net 15. Existing suppliers will have terms of Net 30.

Invoice Entry:

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You can enter invoices through:
• Manual entry: Manually enter invoices in the Invoice Gateway and Invoices windows.
• Import: The Payables Open Interface Import program imports invoices from the
Payables Open Interfaces table. This table is loaded by many sources including invoices
entered online by suppliers in iSupplier Portal, invoices sent by suppliers in EDI or XML
formats, and Oracle applications that load invoices into the Open Interfaces Table such as
Oracle Property Manager and Oracle Assets.
• Automatically generated: Oracle Payables automatically generates the following invoice
types: withholding ax invoices to pay tax authorities, interest invoices, and payment on
receipt invoices.
• Recurring invoices: You can set up Oracle Payables to generate regularly scheduled
invoices such as rent.
• Matching: You can match most invoices to purchase orders or receipts. You can group
manually entered and imported invoices in invoice batches.

Invoice import:

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Oracle Internet Expenses expense reports:

Expense reports your employees enter using a Web browser.
Payables expense reports:

Expense reports entered in the Payables Expense reports window by the Payables department.
Credit Card invoices:

Invoices for employee credit card expenses. The credit card company sends you these invoices as a flat file.
Oracle Projects expense reports:

Project–related expense reports entered in Oracle Projects.
EDI invoices:

Electronic invoices transferred from Oracle e–Commerce Gateway.
Invoices from external systems:

Invoices, such as invoices from legacy systems, loaded using SQL*Loader.
Oracle Property Manager invoices:

Lease invoices transferred from Oracle Property Manager.
Oracle Assets lease payments:

Lease payments transferred from Oracle Assets.

Oracle Procure to Pay Accounting:

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As you know “procure to pay” Business Flow start Purchasing requisition till paying to supplier and most important, in all the case the purchase is made for basic element called Items.

There are three types of items:

1. Inventory Asset Item/Inventory item-PO Related

2. Inventory Expense Item/Inventory Expenses - PO Related

3. Expense item/Non-PO Invoice.

Inventory Asset Item/Inventory item-PO Related :
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2. Inventory Expense Item/ Expense Item-PO Related:

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3. Expenses items/ Non-PO Invoice:

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eBusiness Suite business flows:

Key Business Flows:

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Forecast to Plan:
Demand Planning: Create consolidated forecasts based on marketing, sales and manufacturing.
Order Management: Provide sales order information
Advanced Supply Chain Planning (ASCP): Create constraint-based or optimized plans.

Procure to Pay:
General Ledger: Receive journals
Cash Management: Reconcile cash payments, adjustments and corrections to cash payments
Payables/iExpenses: Record invoices and employee expense reports
Inventory: Set up inventory/expense items, record inventory activity such as receipts of inventory, returns and corrections.
Purchasing/iProcurement: Procure goods and services, record periodic and perpetual accruals

Demand to Build:
Advanced Supply Chain Planning (ASCP)/Material Requirements Planning (MRP):
Create constraint-based or optimized plans, create requisitions (purchase or internal) to
replenish Inventory
Cost Management: Supply cost information for optimized planning
WIP: Use discrete, project, repetitive, assemble–to–order, work order–less, or a combination of manufacturing methods. Inquiries and reports give you a complete picture of transactions,
materials, resources, costs, and job and schedule progress.
Capacity: Calculate your capacity load ratio by resource or production line. Ensure that you have sufficient capacity to meet your production requirements.
BOM: Store lists of items that are associated with a parent item and information about how each item is related to its parent.
Purchasing/iProcurement: Requisitions are received from Inventory and ASCP/MRP. Procure goods and services, record periodic and perpetual accruals
Inventory: Set up inventory/expense items, record inventory activity such as receipts of inventory, returns and corrections.
Order Management: Demand based on sales orders.

Campaign to Order:
Discoverer: Using Discoverer Market segments of your customer base are created. From the market segment a target segment is created. (e.g. Market Segement = All Repeat Customers, Traget Segment = Males over the age of 35).
Marketing: A Marketing campaign is created in Marketing which will target a particular audience. Campaign is executed, execution campaigns can use many different channels (e.g. Web, email, sales calls, etc).
Scripting: A script to walk the sales agent through a particular offer is created and made available to all inbound agents. This script can be launched from the Sales application.
Audience: The audience receives email, phone calls, reads an advertisement, etc…
Advanced Inbound: In this scenario they place a call to a 1-800 number which brings them into the inbound call center and the call is routed to an appropriate sales agent.
Sales: The sales agent launches a script to walk them thru the details of the offer the customer is enquiring.
Order to Cash Flow: The sales agent creates a quote and the quote is passed to Order Management or into the Order to Cash business flow.

Click to Order:
iStore: iStore is the focal point of Click to Order. It enables a company to do business on the web using B2C (Business to Consumer) and/or B2B (Business to Business) models.
JTA: JTA provides user management functionality to the store, allowing users to be created and managed.
Inventory: Product/services that are to be sold in the store are items in Inventory.
Marketing: The eMerchandizing module of Marketing can be used to advertise and make product recommendations within the store. Also, as campaigns are created in Marketing that involve a discount, those discounts get created in Pricing.
Sales: Saved shopping carts that have sat for a predetermined amount of time are made available to Sales as leads.
Pricing: iStore can call the prcing engine to determine the price for an item and see if there are modifiers that can be applied to the price. Quoting can also call Pricing to determine the price.
Quoting: A saved shopping cart is actually a quote in Quoting.
Order to Cash: iStore communicates via the Order Capture Foundation APIs to Order Management (Order Fulfillment). The follow on flow would be the Order to Cash flow.

Order to Cash:
General Ledger: Receive journals for inventory relief.
Receivables/iReceivables: Book receivables for shipped goods, services.
Purchasing/iProcurement: Requisitions/drop shipments.
Inventory: Items, inventory relief.
Order Management: Ship goods, provide services.
Cash Management: Reconcile deposits, corrections and adjustments.

Contract to Renewal:
.iStore: An order placed in iStore can have a Sales Contract created for it. During checkout the customer has the option to accept or negotiate the terms of the sales contract.
Quoting: From Quoting, a salesrep can create a quote for a customer and then create a sales contract from the quote for further negotiation.
Sales Contracts: Sales Contracts are created in the Sales Contracts module.
Quoting: From Quoting, the quote is sent to Order to Cash flow for booking and fulfillment. If the item purchased has a warranty attached, or an extended warranty is purchased, a service contract will be created when it is instantiated in the customer’s install base.
Service Contracts: If the item the customer wants a warranty for was not purchased from the deploying merchant then a warranty/service contract can be purchased and billed through Service Contracts
Accounts Receivable: Accounts Receivable invoices for the item, item w/extended warranty, or just the service contract.

Request to Resolution:
Customer: A customer has purchased a product from a merchant who has implemented iSupport. The customer logs into iSupport.
iSupport: Once in iSupport they can view and update their Installed Base.
Installed Base: The products you own will show for that customer account. This can be done automatically or Manually.
Inventory: In order to add products automatically or manually, they must exist in Inventory.
Knowledge Management: You can also search for a solution using Knowledge Management. If you cannot find a solution you can submit a service request.
Teleservice: Teleservice is the merchant facing application that the merchant’s support personnel would use.
Order Capture Foundation APIs: From iSupport or Teleservice, a customer can also create an RMA (Return Material Authorized). When an RMA is created it is submitted to the Order Fulfillment cycle.
Order to Cash: Order Fulfillment can also refer to the Order to Cash Flow. Once in the Order to Cash flow an order is credited with line types for a return.

Project to Profit:
General Ledger: Receive journals
Payables/iExpenses: Record project-related invoices.
Receivables/iReceivables: Record progress billings.
Purchasing/iProcurement: Record committed costs
Assets: Capitalize assets
Payroll: Record project-related labor.

People to Paycheck:
HRMS: Manage HR related activities
Payroll: Manage payroll
Cash Management: Reconcile payroll
General Ledger: Record labor expense

Oracle Application Shared Entities:

What are Shared Entities:
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Shared entities in the 11i eBusiness Suite allow the one-time definition of an object, and the use of that object across several products.
Shared entities are "owned" by a single product for table purposes only. It does not designate the primary user or decision maker.

The following information shows where the shared entity is usually first defined and with which applications it is shared. However, “ownership” of data is at the company’s discretion. For example, which business unit will be responsible for the supplier file? Payables or Purchasing? An exception is employee information if Human Resources is installed. Then, employee data can only be recorded in Human Resources.

















Set of Books (Owned by General Ledger):
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The Set of Books provides Oracle with a means to collect and quantify financial data. There
are three primary elements to a Set of Books:
• Chart of Accounts
• Calendar
• Currency

Chart of Accounts (COA):
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· Your chart of accounts is the account structure you define to fit the specific needs of your organization.
· You can choose the number of account segments as well as the length, name and order of each segment.
· Chart of Account is one of the building block of SOB. It is an important as well as a mandatory step to setup a SOB. It is important because the structure of COA determines the level or depth of financial reporting. The more detailed the structure is the more reporting detail it has, but than more account codes and long data entry by the end user.

There can be multiple COA structure defined in an instance. But only One structure can be attached to a SOB. Each COA structure has to Enabled, Freezed and Compiled. Other options like Cross Validate Segment, Allow Dynamic Inserts and Freeze Rollup Group are not mandatory but useful.

Accounting Calendar:
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An accounting calendar defines the accounting year and the periods it contains, You can define multiple calendars and assign a different calendar to each set of books.


Currencies :
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• You select the functional currency for your set of books as well as other currencies that you use to transact business and report in.
• General Ledger converts monetary amounts entered in a foreign currency to functional currency equivalents using supplied rates.

The Set of Books represents one of the main entities within the Multiple Organizations
Hierarchy. Set of Books information is used by all eBusiness Suite applications. Some products will utilize currency information; others calendar data and still other products, the chart of accounts information.

Units of measure (UOM: Owned by Inventory):
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Are used by a variety of functions and transactions to express the quantity of items Units of measure are the way that we quantify items. They are grouped into units of measure with similar characteristics by Unit of Measure Classes such as quantity, weight, time and volume. They also include the Conversion mechanisms that enable you to perform transactions in units other than the primary unit of the item being transacted.
The values defined in the Units of Measure window provide the list of values available in unit of measure fields in other applications windows. Units of measure are not inventory organization–specific.

Items (Owned by Inventory) :
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You can define and control all items in inventory. Once defined, you assign items to organizations Items are parts that we buy, sell, or with which we transact.
You choose whether to have centralized or decentralized control of your items through a
variety of item attributes (such as description, lead time, unit of measure, lot control, saleable
vs. purchasable, and others). Much of the information for an item is optional. You define only the information you need to maintain the item.

Suppliers(Owned by Purchasing):
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Suppliers are the individuals or companies from which you procure goods and/or services. Set up suppliers to record information about individuals and companies from whom you purchase goods and services. You can also enter employees whom you reimburse for expense reports.

When you enter a supplier that conducts business from multiple locations, you store supplier
information only once, and enter supplier sites for each location. You can designate supplier
sites as pay sites, purchasing sites, RFQ only sites, or procurement card sites. For example, for a single supplier, you can buy from several different sites and send payments to several
different sites. Most supplier information automatically defaults to all supplier sites to facilitate supplier site entry. However, you can override these defaults and have unique information for each site.

Customers (Owned by Receivables):
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Buyers of our end products and/or services Customers are stored as part of the Trading Community Architecture (TCA).
The two levels within TCA that relate to customers are:
• The Party level or Party Layer
• The Customer Account or Account Layer

When CRM Application refers to customers they are referring to the party layer.
When ERP Application refers to Customers they are referring to the Account layer

When you enter a customer that conducts business from multiple locations, you store customer information only once and enter customer sites for each location. For each entered customer site, you can designate the usage of the site as bill-to, ship-to, marketing and other uses. Many fields within the customer record provide defaults to applications such as Receivables, Order Management and Projects.

Sales Force (Owned by Sales):
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Individuals credited with sales revenue, Sales Force is how the Oracle eBusiness applications identifies sales personnel. An employee must be defined as a salesperson within the Human Resources application as well as within the Resource Manager in CRM Application Foundation to have access within certain CRM applications.
Salespeople are used within the Oracle eBusiness Suite to capture sales credit information
across a number of applications. This sales credit information is in turn used to form the basis
for sales compensation calculations and potentially to assign revenue accounting.
Sales Force personnel are also used for team analysis, determination of territory alignment,
and assignment of sales leads.

Employees (Owned by Human Resources :
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Individuals employed by the company who perform certain tasks Human Resources establishes employees to track personnel information such as skills, benefits, jobs, and statuses. Once defined in the system, employees can also be used for approval activities, processing expense transactions and the assigning of fixed assets.

Note: When you have not licensed the Human Resources application but employees are
required for the applications you have licensed, you will have limited access to the employee
tables through those applications.

Locations (Owned by Human Resources):
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Physical addresses that may represent our company’s addresses or our customer's addresses.
Locations have various usages assigned to then such as:
• Bill to (where suppliers send invoices)
• Ship to (where suppliers send product)
• Office (identifies a business address where employees are located) Locations can be linked to one or many organizations.

Organizations(Owned by Human resources) :
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Entity designation used to partition data into logical units. An organization may be a physical site or it can represent a collection of sites sharing certain characteristics. These characteristics are used to define business structure within the Oracle eBusiness environment. Examples of organizations include, but are not restricted to:
• Legal Entity: the business units where fiscal or tax reports are prepared.
• Operating Unit: the level at which ERP transaction data is secured.
• Inventory Organization: a business unit such as a plant, warehouse, division
• Expenditure/Event Organization: allows you to own events, incur expenditures, and hold budgets for projects.

Oracle E-Business Roadmap and Footprint:

Technology Stack:

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Oracle Applications Architecture(11i vs R12):

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Oracle Application Product Roadmap:

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Oracle EBS Architecture:

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Oracle 11i E-Business Footprint:

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CRM Footprint:

====================

HRMS:

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Oracle Application Implementation Methodology (AIM) and Its life Cycle

The AIM consists of six stages.

These are:
1. Definition.
2. Operations Analysis.
3. Solution Design .
4. Build.
5. Transition.
6. Production.

Oracle Implementation Methodolgy:

1.Definition Stage:
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During this stage, the foundation of the project is set. This stage defines: the scope and terms; clarifies project goals and objectives; identifies people, resources , milestones and targets. Oracle and CLIENT project managers work together to build an achievable work plan. Business objectives are evaluated for time, resource, and budget constraints. Project managers introduce the work plan to team members together with guidelines on how project objectives will be achieved.
Deliverables:
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1. Implementation Strategy Document
2. Work Plan

2. Operations Analysis Stage:
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During this stage, CLIENT project team members introduce assigned Oracle consultants to the operational and administrative processes and practices of their business. End user, management, and technical business requirements are collected and documented in a business model.
Deliverables:
-----------------------
1. Updated Project Plan
2. Operations Analysis activity presentation
3. Business Requirements Document
4. Fit analysis of requirements
5. Proposed flow, as required

3. Solution Design Stage:
----------------------------------
During this stage, CLIENT and Oracle project team members create process solutions by matching application features to the business requirements identified during Operations Analysis. Solution design may include mapping Priority 1 business requirements to delivered software features, prototyping each requirement in a test environment. The project team evaluates all alternatives based on requirements, maintenance, benefits, and cost.
Deliverables:
-----------------------
1. Updated work plan
2. Solution Design activity presentation
3. Installed Software
4. Training for Project Team
5. Test System Configuration
6. Prototypes
7. Prototype Models
8. Application Set up Document
9. List of policies and procedures
10. System test plans
11. List of issues

4. Build Stage:
------------------------
All the business solutions identified and designed during the solutions design stage will be tested to ensure they meet the business needs.
Deliverables:
-----------------------
1. Updated Work Plan
2. Build activity presentation
3. Conference Room Pilot
4. Test results
5. System certification

5. Transition Stage:
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During this stage, the CLIENT project teams will train the end users while the technical team configures the production environment and converts data. This stage completes with enterprise transitioning to the new applications.
Deliverables:
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1. Updated Work Plan
2. Transition activity presentation
3. The production environment
4. Cutover plan
5. End user training assistance
6. List of user ids, menus and passwords

6. Production Stage:
----------------------------
This production stage begins with the cut over from the Transition stage. This stage includes both end user and technical support activities of the production system and also includes post production tasks to review the previous implementation and make plans for the future.
Deliverables:
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1. Production support
2. System tuning support


Oracle AIM Process and Life Cycle:












AIM for Business Flows: Top Level Flow

e-business Planning cycle

Oracle is the world’s largest provider of Internet-enabled business applications and technologies. Through Oracle standard solutions, customers of are transforming their businesses into e-businesses.

The goal of the e-business planning cycle is to quickly translate e-business concepts to action. E-business must be managed in three stages.

1. Concept :Identifying and prioritizing e-business initiatives,
2. Deploy :Implementing initiatives in 120-day phases,
3. Execute :Measuring performance and channeling market feedback into the planning process.

Any organization can adopt an e-business planning cycle that produces differentiated business concepts that translate to action.

Consider the following guidelines for making e-business planning work for your organization:

1. Demonstrate strong executive sponsorship : E-business challenges the status quo and often creates fear among employees and traditional distributors who feel threatened by change. Strong executive sponsorship helps them understand the opportunities presented by e-business and should motivate them toward an exciting future.
2. Build a cross-functional planning team :A successful e-business initiative will require close coordination between all functions within your organization. The planning team should be composed of stakeholders who are close to customers and operations and should be individuals who are best able to challenge the status quo.
3. Learn from others :Look beyond your traditional industry for e-business experiences. In many cases, ideas from other industries may present the opportunity you are looking for.
4. Find experienced partners :Few organizations have all the core competencies needed for successful e-business. Find partners who have experience in a variety of industries to augment your internal team.
5. Develop high-performance teams: Identify your best performers and work with your partners to organize teams that can focus on quickly turning your business concepts into action.
6. Think global now: E-business is global business. While global markets may not be your initial focus, a presence on the internet provides the global opportunity.
7. Think outside in: Develop your strategies through the eyes of your customers, distributors, suppliers, partners and employees.
8. Build in flexibility: Flexibility is the key attribute of an e-business architecture. Manage toward internet standards, componentized architecture and model-driven development to build in flexibility.
9. Measure feedback: Devise key performance metrics that will help you measure the growth and performance of your e-business initiatives. Similarly, define a plan for obtaining customer feedback. Performance measures and market feedback are critical to the ongoing planning process.
10. Be prepared to adjust: Market feedback and performance measures will help you understand what is working and what is not. Adjust your strategy continuously to build on your strengths and to try new ideas.