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Introduction to Business Processes

in Oracle Applications

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Understanding Business Processes Getting started with Oracle Applications

Objectives

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Supply Chain Management – Supply Chain Management - Processes– Supply Chain Management - Entities– Supply Chain Management - Cycles Overview– Oracle Solution for SCM Cycles

Customer relationship Management Financials Getting Started with oracle Applications

– Modelling Enterprise in Oracle Applications

Agenda

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Business Intelligence

Mark

eti

ng

eBusiness Platform

Common Application Architecture & Schema

Sale

s

Serv

ice

S

trate

gic

En

terp

rise

Man

ag

em

en

t

S

up

ply

Ch

ain

In

tern

et

Pro

cure

men

t

Fin

an

cials

H

um

an

reso

urc

es

Pro

ject

s

Tra

velM

an

ag

em

en

t

Oracle E-Business Suite

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Supply Chain Management (SCM)

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A supply chain is a network of supplier, manufacturing, assembly, distribution, and logistics facilities that perform the functions of procurement of materials, transformation of these materials into intermediate and finished products, and the distribution of these products to customers.

Supply chain management (SCM) is a systematic approach to manage the entire flow of information, materials, and services from raw material suppliers through factories and warehouses to the end customer.

Supply Chain Management is the management of the entire value-added chain, from the supplier to manufacturer right through to the retailer and the final customer.

SCM has three primary goals: Reduce inventory, increase the transaction speed by exchanging data in real-time, and increase sales by implementing customer requirements more efficiently.

What is Supply Chain Management?

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Service &

Maintain

Service &

Maintain

DevelopDevelopDevelopDevelop

MarketMarket

Sell & ManageOrders

Sell & ManageOrders

ProcureProcure

FulfillFulfillPlanPlan

Manufacture

Supply Chain Management Processes Overview

Planning is the strategic portion of SCM. You need a strategy for managing all the resources that go toward meeting customer demand for your product or service.

Choose the suppliers that will deliver the goods and services you need to create your product. Develop a set of pricing, delivery and payment processes with suppliers and create metrics for monitoring and improving the relationships.

Coordinate the receipt of orders from customers, develop a network of warehouses, pick carriers to get products to customers and set up an invoicing system to receive payments.

Schedule the manufacturing activities necessary for production, testing, packaging and preparation for delivery.

Create a network for receiving defective and excess products back from customers and supporting customers who have problems with delivered products.

Developing new products is the starting point of a supply-chain cycle where Product specifications are created.

Marketing and Sales generates demand for the Product by publicizing its features and how it would address customer priorities. In the process, Marketing also gets customer feedback and communicates to Product development group.

Maintain and manage the customer orders, order holds, notes and release the orders to warehouse for fulfillment based on requested date, product availability and customer credit limit.

Supply Chain Management Processes

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CustomerManufacturer

Supplier

Retailer Production Facility

Distributor

A supply chain is a network of suppliers, manufacturing, warehouse, distribution, and logistics facilities including the customers.

Product flow happens in a supply chain from supplier to manufacturer to distributor to retailer to customer where as cash & information flow happens in the reverse direction.

Supply Chain Management - Entities

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Service & Maintain

Service & Maintain

DevelopDevelopDevelopDevelop

MarketMarket

Sell & ManageOrders

Sell & ManageOrders

ProcureProcure

FulfillFulfillPlanPlan

Manufacture

• Release Management• Shipping Execution• Inventory Management WMS• Transportation Execution • Order

management Advanced Pricing• Configurator• iStore

• Telesales• Trade Management• Incentive Compensation• Order Capture• Partners Online

• Depot Repair• Field Service• Install Base• Service Contracts• Service Fulfillment Manager• Spares Management

• Advanced Supply Chain Planning• Global Order Promising

• Cost Management• Configure to Order• Process Manufacturing• Project Manufacturing• Quality• Work in Process

• Purchasing• iProcurement

• Oracle Product Lifecycle Management. Oracle Advanced product Catalog

Oracle Supply Chain Management Solutions

Oracle Supply Chain Management Solutions

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Order Management Channel A

Channel B Customer

Channel CProduct Distribution

Manufacturing

Demand PlanningSupply PlanningPart Supply

Orders

DemandForecast

ComponentRequirement

PartsProduction Plans

Products

Products

Orders

Products

Products

Orders

Orders

Order & Product Flow

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Suppliers(International)

1.2 Million PC/Yr.Glasgow U.K.

Warehouse

PortPC Assembly

Plant

13 TransshipmentPoints (TPs) in Europe

Country-wide

Distribution Centers (DCs)

Retailers

A Typical Supply Chain: IBM Europe PC

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CustomerManufacturer

Supplier

Customer Places OrderCustomer Places Order

Supplier sends required material

Supplier sends required material

RetailerDist

ributo

r mainta

ins Sto

ck &

orders

at tim

es

Distrib

utor m

aintains S

tock

& ord

ers at t

imes

Production FacilityDistributor

Mfr P

lans a

nd re

lease

s Job O

dre

r

Mfr P

lans a

nd re

lease

s Job O

dre

rShop fl

oor

execu

tes

job o

rder

Shop fl

oor

execu

tes

job o

rder

Retailer Places Order

Retailer Places Order

Supply Chain Management - Cycles

Manufacturer Ships Goods

Manufacture

r ships g

oods

Distributor replenishes Stock

Manufacturer requests RM

and Std parts

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Check Availability,Schedule

Order

Check Availability,Schedule

Order

Enter Order/Line

details

Enter Order/Line

details

Review Order Price&Adjustments

Review Order Price&Adjustments

Pick Release

the Order

Pick Release

the Order

Pick Confirm

Pick Confirm

Ship Confirm

Ship Confirm

Book the Order

Book the Order

Oracle Order

Management

Oracle Advanced

pricing

Oracle WMS

Oracle Order

Management

Oracle Global

ATPOracle TransportationManagement

Oracle INV

Oracle Mobile Supply

ChainApplication

Oracle Shipping Execution

O2C Cycle

Oracle Shipping Execution

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Create Quotation(Optional)

Create Quotation(Optional)

Create Requisition

Create Requisition

Create RFQ(Optional)

Create RFQ(Optional)

Create PurchaseOrder

Create PurchaseOrderReceiveReceive

Inspect & DeliverInspect

& Deliver

Oracle Purchasing

Oracle iProcurement

Oracle INV

Oracle INV

Oracle Purchasing

Oracle Purchasing

Oracle Mobile Supply

ChainApplication

Oracle WMS

Oracle WMS

Oracle Purchasing

P2P Cycle

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Issue Components

for the Assembly

Do Forecast andsetup ASCP

PlanParameters

Analyze Plan Output

and Release Work

order

Process and Move

Assembly thru’all processing

steps

Complete and Issue Assy to FGI

Launch ASCP Plan

Oracle ASCP

Oracle INV Oracle

OSFM

Oracle INV

Oracle WMS

Oracle ASCP

Oracle Demand Planner

Oracle WIP

Oracle ASCP

Oracle WIP

P2M Cycle

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Customer relationship management (CRM)

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Customer relationship management (CRM) is a broad term that covers concepts used by companies to manage their relationships with customers, including the capture, storage and analysis of customer information.

Oracle’s CRM Suite of Applications try to cater to the mantra of Information-Driven CRM by addressing various needs of Organizations. It is designed to help organizations. – Align marketing, sales and service to overall corporate objectives – Drive profit through selling and service effectiveness– Maximize collaboration across all customer-facing channels; direct,

partner, service and ecommerce The broad module level divisions offered in Oracle CRM Suite are

– Oracle Marketing and Sales – Oracle Customer Service – Oracle Channel Management – Daily Business Intelligence for CRM

Customer relationship management (CRM)

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Financials

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Oracle Financial comprises of the following main Finance Modules– General Ledger– Accounts Payable– Accounts Receivables– Fixed Assets– Cash Management

Financial Modules

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Oracle Financials Suite

InventoryInventoryPurchasingPurchasing

PayablesPayables

OrderOrder

AssetsAssets

General LedgerGeneral Ledger

ReceivablesReceivables

Cash MgtCash Mgt

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Oracle General Ledger (GL):– The central repository of all financial transactions. – At the heart of any accounting system. – A tool, for integrating sub-ledger activity, consolidating group-wide accounts and

releasing statutory/analytical financial reports. Accounts Payable (AP)

– Payables, an expenditure management tool, used to streamline the procure-to-pay process

– Payable used to Manage Suppliers, Manage Disbursements & Manage Payments– Saves money by enforcing various payment policies– Effective integration with Cash Management, Purchasing, General Ledger, Assets

& Projects Accounts Receivables (AR)

– An invoicing and collections management application, used to streamlines order-to cash process

– Receivables manages invoicing, tax calculation, receipt application, collections, and revenue recognition,

– Effective Integration with Cash Management, Order Management, General Ledger & Projects

Financial Modules-Overview

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Cash Management (CM)– CM helps one to effectively manage and control cash cycle of

the enterprise in order to ensure liquidity and improve profitability.

– Tool used to Manage the Cash Forecasting and reconciling the bank transactions from Receivables, Payables and General Ledger with the Bank Statements.

Fixed Assets (FA)– Asset management encompasses three primary activities:

• Physical Upkeep: Comprises asset location, asset condition and assignment

• Asset Tracking: Covers the whole gamut from controlling leased, loaned and consigned items from acquisition to asset maintenance.

• Financial: Involves asset value, depreciation and taxation.

– To maintain and calculate the depreciation to the Assets– Integrates with Purchasing, Payables , General Ledger &

Projects

Financial Modules-Overview (Contd.).

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Getting Started with Oracle Applications

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Business Group: represents the highest level in the organization structure. It secures human resources information, eg. when you request a list of employees, you see all employees assigned to the business group of which your organization is a part.

Business Group: represents the highest level in the organization structure. It secures human resources information, eg. when you request a list of employees, you see all employees assigned to the business group of which your organization is a part.

Enterprise Modeling

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Ledger: A financial reporting entity that uses a particular chart of accounts, functional currency, and accounting calendar. Oracle General Ledger secures transaction information (such as journal entries and balances) by set of books.

Legal Entity: is a legal company for which you prepare fiscal or tax reports. You assign tax identifiers and other legal entity information to this type of organization.

Balancing Entity: This is a segment in the Accounting Flexfield structure (usually Company segment) at which all accounting entries must balance.

Enterprise Modeling

Each legal entity can have one or more balancing entities. You can use Flexfield Value Security rules to restrict data entry of balancing segment values by legal entity or operating unit

Each legal entity can have one or more balancing entities. You can use Flexfield Value Security rules to restrict data entry of balancing segment values by legal entity or operating unit

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Operating Unit: is associated with a legal entity. Information is secured by operating unit for applications viz: Order Management, Shipping Execution, Oracle Payables, Oracle Purchasing, Oracle Receivables and Oracle Cash Management.

To run any of these applications, you choose a responsibility associated with an operating unit.

Inventory Organization: is an organization for which you track inventory transactions and balances, manufactures or distributes products viz: manufacturing plants, warehouses, distribution centers, and sales offices.

Enterprise Modeling (Contd.).

The following applications secure information by inventory organization: Oracle Inventory, Bills of Material, Engineering, Work in Process, MRP and receiving functions.

The following applications secure information by inventory organization: Oracle Inventory, Bills of Material, Engineering, Work in Process, MRP and receiving functions.

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Subinventories are unique physical or logical separations of material inventory, such as raw inventory, finished goods or defective material. All material within an organization is held in Subinventories.

A stock locator can be of Storage locator, Dock door or Staging lane type. Staging lane is used for staging after pick releasing, Storage locators store material. During load process material is transferred from staging lane to Dock door.

Inventory orgnWashington Plant

SubInventoryFGI

Stock LocatorR1.R5.B1

Staging LaneA.1.1

Enterprise Modeling (Contd.).

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All types of organizations can be defined using the Define Organization

Choose a location where this organization exists.

Enter what type(s) of organization is this, in organization classification viz.

GRE/Legal Entity: Enter Legal Entity Accounting info like Ledger, Location.

Operating Unit: Enter Operating Unit Information like Legal context, Ledger.

Inventory Organization: Enter its Accounting Information like Ledger, Legal context & Operating Unit.

Maintain Organizations

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ORG_INFORMATION_ID ORG_INFORMATION_CONTEXT ORGANIZATION_ID ORG_INFORMATION1 ~ 20

HR_ORGANIZATION_INFORMATION

ORGANIZATION_ID NAME BUSINESS_GROUP_ID LOCATION_ID DATE_FROM INTERNAL_EXTERNAL_FLAG INTERNAL_ADDRESS_LINE TYPE

HR_ALL_ORGANIZATION_UNITS

Organizations Technical Architecture

ORGANIZATION_ID BUSINESS_GROUP_ID USER_DEFINITION_ENABLE_DATEDISABLE_DATE ORGANIZATION_CODE ORGANIZATION_NAME SET_OF_BOOKS_ID CHART_OF_ACCOUNTS_ID INVENTORY_ENABLED_FLAG OPERATING_UNIT LEGAL_ENTITY

ORG_ORGANIZATION_DEFINITIONS

BUSINESS_GROUP_ID ORGANIZATION_ID NAME DATE_FROM DATE_TO SET_OF_BOOKS_ID VAT_REGISTRATION_NUMBER

BUSINESS_GROUP_IDORGANIZATION_ID NAME DATE_FROM DATE_TO LEGAL_ENTITY_ID SET_OF_BOOKS_ID

HR_OPERATING_UNITS

HR_LEGAL_ENTITIES

All organizations are maintained in HR_ALL_ORGANIZATION_UNITS table and organization classifications like Legal entity or operating unit information are stored in HR_ORGANIZATION_INFORMATION table. There are 3 views provided based on these 2 tables to easily find out the Legal entity, Operating unit and Inventory organization viz: HR_LEGAL_ENTITIES, HR_OPERATING_UNITS, ORG_ORGANIZATION_DEFINITIONS.

Organization_id in HR_LEGAL_ENTITIES is referred as

legal_entity_id in HR_OPERATING_UNITS

legal_entity in ORG_ORGANIZATION_DEFINITIONS

Organization_id in HR_OPERATING_UNITS is referred as

operating_unit in ORG_ORGANIZATION_DEFINITIONS

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Define Location name(code) and addresses for the locations you use within your enterprise. These are used for a variety of functions viz: receiving, shipping and billing

Enter address style and address for the location.

Enter ship to location code and other site use info.

Associate the location code with an inv organization.

LOCATION_ID ENTERED_BY LOCATION_CODE ADDRESS_LINE_1 ADDRESS_LINE_2 ADDRESS_LINE_3 BILL_TO_SITE_FLAG COUNTRY DESCRIPTION DESIGNATED_RECEIVER_ID IN_ORGANIZATION_FLAG INACTIVE_DATE INVENTORY_ORGANIZATION_ID OFFICE_SITE_FLAG POSTAL_CODE

Location Addresses

HR_LOCATIONS_ALL

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SECONDARY_INVENTORY_NAME ORGANIZATION_ID DESCRIPTION DISABLE_DATE INVENTORY_ATP_CODE AVAILABILITY_TYPE RESERVABLE_TYPE LOCATOR_TYPE PICKING_ORDER MATERIAL_ACCOUNT MATERIAL_OVERHEAD_ACCOUNT RESOURCE_ACCOUNT OVERHEAD_ACCOUNT OUTSIDE_PROCESSING_ACCOUNT QUANTITY_TRACKED ASSET_INVENTORY SOURCE_TYPE SOURCE_SUBINVENTORY PREPROCESSING_LEAD_TIME PROCESSING_LEAD_TIME STATUS_ID

MTL_SECONDARY_INVENTORIES

Subinventories are unique physical or logical separations of material inventory, such as raw inventory, finished goods or defective material. All material within an organization is held in Subinventories.

Subinventories

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INVENTORY_LOCATION_ID ORGANIZATION_ID DESCRIPTION DISABLE_DATE INVENTORY_LOCATION_TYPE PICKING_ORDER PHYSICAL_LOCATION_CODE LOCATION_MAXIMUM_UNITS SUBINVENTORY_CODE LOCATION_WEIGHT_UOM_CODE MAX_WEIGHT VOLUME_UOM_CODE MAX_CUBIC_AREA X_COORDINATE Y_COORDINATE Z_COORDINATE INVENTORY_ACCOUNT_ID SUMMARY_FLAG ENABLED_FLAG START_DATE_ACTIVE END_DATE_ACTIVE PHYSICAL_LOCATION_ID PICK_UOM_CODE DIMENSION_UOM_CODE LENGTH WIDTH HEIGHT LOCATOR_STATUS STATUS_ID CURRENT_CUBIC_AREA AVAILABLE_CUBIC_AREA CURRENT_WEIGHT AVAILABLE_WEIGHT

MTL_ITEM_LOCATIONS

A stock locator can be of Storage locator, Dock door or Staging lane type. Staging lane is used for staging after pick releasing, Storage locators store material. During load process material is transferred from staging lane to Dock door.

Item Locators

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You can assign items to a given subinventory such that the items are restricted to that subinventory.

Thus, you can always issue and receive unrestricted items to any subinventory, but you can only issue and receive restricted items to their list of subinventories.

You activate the list of subinventories for a restricted item by setting the Restrict Subinventories attribute when defining or updating item.

Item Subinventories

INVENTORY_ITEM_ID ORGANIZATION_ID SECONDARY_INVENTORY PRIMARY_SUBINVENTORY_FLAG PICKING_ORDER MIN_MINMAX_QUANTITY MAX_MINMAX_QUANTITY INVENTORY_PLANNING_CODE FIXED_LOT_MULTIPLE MINIMUM_ORDER_QUANTITY MAXIMUM_ORDER_QUANTITY SOURCE_TYPE

MTL_ITEM_SUB_INVENTORIES

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MOAC (Multi org access control)

•Multiple Organizations provide security profiles which enable users to access, process, and report data in multiple operating units from a single responsibility.• In Security Profile form, assign multiple operating units to a security profile.

•Multiple Organizations provide security profiles which enable users to access, process, and report data in multiple operating units from a single responsibility.• In Security Profile form, assign multiple operating units to a security profile.

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•You must set either the MO: Operating Unit or MO: Security Profile option for each application responsibility to use Multiple Organizations context sensitive applications.

•You must set either the MO: Operating Unit or MO: Security Profile option for each application responsibility to use Multiple Organizations context sensitive applications.

•When you connect to the Oracle Applications, you sign on by entering your user name and password. Then, you choose a responsibility that is available to your user. After you choose your responsibility, there is an initialization routine that reads the values for only the information for those operating units that are assigned to your responsibility.•If you set the MO: Security Profile profile option, you can also set an operating unit asthe default operating unit using the MO: Default Operating Unit profile option. This isuseful when you transact in multiple operating unit but frequently transact in oneoperating unit.

•When you connect to the Oracle Applications, you sign on by entering your user name and password. Then, you choose a responsibility that is available to your user. After you choose your responsibility, there is an initialization routine that reads the values for only the information for those operating units that are assigned to your responsibility.•If you set the MO: Security Profile profile option, you can also set an operating unit asthe default operating unit using the MO: Default Operating Unit profile option. This isuseful when you transact in multiple operating unit but frequently transact in oneoperating unit.

MOAC (Multi org access control)

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You can set your SQL session context for a single OU with the following:BEGINMo_global.set_policy_context('S',103);END;•The „S‟ means Single Org Context•2 is the ORG_ID

Set your SQL session context for multiple OU‟s with the following:BEGINexecute mo_global.set_org_access(NULL,64,‘ONT');END;•64 is the Security Profile you want to use•ONT is the application associated with the responsibility you will be using

The following SQL will dump out the Security Profiles and Operating Unit Names assigned to them

select psp.SECURITY_PROFILE_NAME,psp.SECURITY_PROFILE_ID,hou.NAME,hou.ORGANIZATION_IDfrom PER_SECURITY_PROFILES psp,PER_SECURITY_ORGANIZATIONS pso,HR_OPERATING_UNITS houwhere pso.SECURITY_PROFILE_ID = psp.SECURITY_PROFILE_IDand pso.ORGANIZATION_ID = hou.ORGANIZATION_ID;

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1. Supply chain Management - Strategy, Design and Operations by Sunil Chopra , Peter Meindl

References

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Thank You