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Introduction to

Business Processes
in Oracle Applications

1
Objectives

Understanding Business Processes


Getting started with Oracle Applications

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Agenda

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

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4
Marketing

Sales

Service

Strategic Enterprise
Management

Supply Chain
Oracle E-Business Suite

Internet Procurement

eBusiness Platform
Business Intelligence

Financials

Human resources
Common Application Architecture & Schema

Projects

Travel Management
Supply Chain Management (SCM)

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What is Supply Chain Management?

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.

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Supply Chain Management Processes
Create a network for receiving Developing new products is the
defective and excess products starting point of a supply-chain
back from customers and cycle where Product
supporting customers who have specifications are created.
problems with delivered
products. Marketing and Sales generates
Coordinate the receipt of demand for the Product by
orders from customers, Develop publicizing its features and how
develop a network of Service it would address customer
warehouses, pick carriers to & Market priorities. In the process,
get products to customers Maintain Marketing also gets customer
and set up an invoicing feedback and communicates to
system to receive payments. Fulfill Product development group.
Plan
Schedule the Planning is the strategic
manufacturing activities portion of SCM. You need a
necessary for production, Manufacture strategy for managing all the
Sell & Manage resources that go toward
testing, packaging and Orders
preparation for delivery. Procure meeting customer demand
for your product or service.
Choose the suppliers that will deliver Maintain and manage the
the goods and services you need to customer orders, order holds,
create your product. Develop a set of notes and release the orders
pricing, delivery and payment to warehouse for fulfillment
processes with suppliers and create based on requested date,
metrics for monitoring and improving product availability and
the relationships. customer credit limit.
Supply Chain Management Processes Overview
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Supply Chain Management - Entities
A supply chain is a
network of suppliers,
manufacturing,
warehouse, Supplier
distribution, and
logistics facilities
including the
customers.

Manufacturer
Product flow
Customer
happens in a
supply chain
from supplier to
manufacturer to
distributor to
retailer to
customer where
as cash & Retailer Production
information flow Facility
happens in the Distributor
reverse
8direction.
Oracle Supply Chain Management
Solutions Oracle Product
Lifecycle
Telesales
Depot Repair Management
Trade
Field Service . Oracle Advanced
Management
Install Base product Catalog
Incentive
Service Contracts Compensation
Service Order Capture
Fulfillment Manager Partners Online
Develop
Spares Service &
Management Maintain Market
Release
Management Advanced Supply
Shipping Chain Planning
Fulfill
Execution Plan Global Order
Inventory Promising
Management
WMS Manufacture
Sell & Manage
Cost
Transportation Orders
Management
Execution Procure
Order
Configure to
management
Order
Advanced
Process
Pricing
Manufacturing
Configurator
Project
Purchasing iStore
Manufacturing
Quality
Work in Process iProcurement
Oracle Supply Chain Management Solutions
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Order & Product Flow

Product
Orders
s
Order Management Channel A
Orders

Channel B Customer
Orders

Orders
Product Product Product
Manufacturing s s Channel C
Distribution Product
s
Parts Production
Plans
Demand
Forecas
Part Supply Supply Planning t Demand Planning
Component
Requirement

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A Typical Supply Chain: IBM Europe
PC

Warehouse

Port
PC Assembly
Plant Retailers

Suppliers 1.2 Million PC/Yr. 13 Transshipment Country-


(International) Glasgow U.K. Points (TPs) in Europe wide
Distribution
Centers
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(DCs)
Supply Chain Management - Cycles
Su
pp
l ie
rs
Ma ends
nu
fac requ
t i
Supplier and urer re red ma
Std qu te
pa est ri
rts s R al
Customer Places Order M
Manufacturer Ships Goods
Manufacturer
ese
Customer im

Mfr Pla
o rder
t
s at
r
de
or ds

tes job
ns and
& o
ck go
to ps
i
sS r sh

or exec u
n
ai ur
e

r
nt

e
a i c t

le
Reta m fa
iler P u

a
laces r
o an

ses Job
Orde
r but M
Retailer ri

S hop flo
Dist
ri i st
repl
enis butor D
hes

Odrer
Stoc
k
Production
Distributor Facility

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O2C Cycle
Oracle Oracle
Enter Review Advanced
Order Order/Line Order Price&
Management details pricing
Adjustments Oracle
Oracle Global
Shipping ATP
Execution Oracle
Transportation Check
Ship Management Availability,
Confirm Schedule
Order
Oracle
Oracle
Mobile Supply
Order
Chain
Management
Application
Oracle
Pick Shipping Book the
Oracle Confirm
Execution Order
WMS
Pick
Oracle Release
INV the Order

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P2P Cycle
Oracle
Oracle Oracle
iProcurement
Purchasing Purchasing
Create Create RFQ
Requisition (Optional)

Oracle
Oracle Oracle
INV
WMS Purchasing
Oracle
Inspect Mobile Supply Create Quotation
& Deliver (Optional)
Chain
Application

Oracle Oracle
INV Purchasing

Create Purchase
Receive
Order

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P2M Cycle
Oracle Oracle
ASCP Analyze Plan
ASCP
Launch Output
ASCP Plan and
Release Work
order
Oracle
ASCP Oracle
Oracle Oracle
Demand Planner
WMS WIP
Do Forecast and
Issue
setup ASCP
Components
Plan Oracle for the Assembly
Parameters
INV
Oracle
INV Oracle
Oracle OSFM
WIP Process and
Complete and Move
Issue Assy to FGI Assembly thru
all processing
steps

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Customer relationship management
(CRM)

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Customer relationship management
(CRM)
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.
Oracles 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

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Financials

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Financial Modules

Oracle Financial comprises of the following main Finance


Modules
General Ledger
Accounts Payable
Accounts Receivables
Fixed Assets
Cash Management

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Oracle Financials Suite

Inventory
Purchasing

Payables

Cash Mgt

Receivables Assets

General Ledger
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Order
Financial Modules-Overview
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

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Financial Modules-Overview
(Contd.).
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

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Getting Started with Oracle
Applications

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Enterprise Modeling
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.

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Enterprise Modeling
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
Each legal segment)
entity can at which
have one all balancing entities.
or more
accounting
You can useentries must
Flexfield balance.
Value Security rules to restrict data entry of balancing segment
values by legal entity or operating unit

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Enterprise Modeling (Contd.).
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.
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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Enterprise Modeling (Contd.).

Inventory orgn Subinventories are unique


Washington Plant physical or logical separations
of material inventory, such as
raw inventory, finished goods
or defective material. All
SubInventory material within an organization
FGI
is held in Subinventories.
A stock locator can be of
Storage locator, Dock door or
Stock Locator Staging lane type. Staging
R1.R5.B1 lane is used for staging after
pick releasing, Storage
locators store material. During
load process material is
Staging Lane transferred from staging lane
A.1.1 to Dock door.

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Maintain Organizations
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.

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Organizations Technical
Architecture
All organizations are maintained in HR_ALL_ORGANIZATION_UNITS

HR_ALL_ORGANIZATION_UNITS table and organization ORGANIZATION_ID


NAME
classifications like Legal entity or operating unit BUSINESS_GROUP_ID
LOCATION_ID
information are stored in DATE_FROM
HR_ORGANIZATION_INFORMATION table. There are 3 INTERNAL_EXTERNAL_FLAG
INTERNAL_ADDRESS_LINE
views provided based on these 2 tables to easily find TYPE
out the Legal entity, Operating unit and Inventory
HR_ORGANIZATION_INFORMATION
organization viz: HR_LEGAL_ENTITIES,
ORG_INFORMATION_ID
HR_OPERATING_UNITS,
Organization_id in ORG_INFORMATION_CONTEXT
ORG_ORGANIZATION_DEFINITIONS.
HR_LEGAL_ENTITIES is referred as HR_LEGAL_ENTITIES ORGANIZATION_ID
ORG_INFORMATION1 ~ 20
legal_entity_id in BUSINESS_GROUP_ID
ORGANIZATION_ID ORG_ORGANIZATION_DEFINITIONS
HR_OPERATING_UNITS NAME
DATE_FROM
legal_entity in DATE_TO ORGANIZATION_ID
ORG_ORGANIZATION_DEFINITIONS SET_OF_BOOKS_ID BUSINESS_GROUP_ID
VAT_REGISTRATION_NUMBER USER_DEFINITION_ENABLE_DATE
Organization_id in HR_OPERATING_UNITS
DISABLE_DATE
HR_OPERATING_UNITS is referred BUSINESS_GROUP_ID
ORGANIZATION_CODE
ORGANIZATION_NAME
as ORGANIZATION_ID SET_OF_BOOKS_ID
NAME
operating_unit in DATE_FROM CHART_OF_ACCOUNTS_ID
INVENTORY_ENABLED_FLAG
ORG_ORGANIZATION_DEFINITIONS DATE_TO LEGAL_ENTITY_ID OPERATING_UNIT
SET_OF_BOOKS_ID LEGAL_ENTITY

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Location Addresses
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
HR_LOCATIONS_ALL
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

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

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Item Locators
MTL_ITEM_LOCATIONS

A stock locator can be of Storage locator, Dock INVENTORY_LOCATION_ID


ORGANIZATION_ID
door or Staging lane type. Staging lane is used for DESCRIPTION
DISABLE_DATE
staging after pick releasing, Storage locators store INVENTORY_LOCATION_TYPE
PICKING_ORDER
material. During load process material is PHYSICAL_LOCATION_CODE
transferred from staging lane to Dock door. 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

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Item Subinventories
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. MTL_ITEM_SUB_INVENTORIES

You activate the list of INVENTORY_ITEM_ID


ORGANIZATION_ID
subinventories for a SECONDARY_INVENTORY
PRIMARY_SUBINVENTORY_FLAG
restricted item by PICKING_ORDER
setting the Restrict MIN_MINMAX_QUANTITY
MAX_MINMAX_QUANTITY
Subinventories INVENTORY_PLANNING_CODE
FIXED_LOT_MULTIPLE
attribute when MINIMUM_ORDER_QUANTITY
MAXIMUM_ORDER_QUANTITY
defining or updating SOURCE_TYPE

item.
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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.

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MOAC (Multi org access control)

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 as
the default operating unit using the MO: Default Operating Unit profile option. This is
useful when you transact in multiple operating unit but frequently transact in one
operating unit.

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You can set your SQL session context for a single OU with the following:
BEGIN
Mo_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 OUs with the following:
BEGIN
execute 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_ID
from PER_SECURITY_PROFILES psp,
PER_SECURITY_ORGANIZATIONS pso,
HR_OPERATING_UNITS hou
where pso.SECURITY_PROFILE_ID = psp.SECURITY_PROFILE_ID
and pso.ORGANIZATION_ID = hou.ORGANIZATION_ID;

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References

1. Supply chain Management - Strategy, Design and


Operations by Sunil Chopra , Peter Meindl

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Thank You

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