The below example explains a few of the important terms and concepts used in the Oracle E-Business Suite. This would be a good starting point for the beginners to better understand the concepts behind Oracle Applications.
Say Harry is the owner of a wholesale fruit shop. He buys various fruits like apples, oranges, mango's and grapes etc from farmers directly and sells them to retail shop owners and also to the direct customers.
The farmers are referred to as VENDORS/SUPPLIERS in Oracle Applications.
Harry keeps track of all his vendors’ information like addresses, bank account and the amount he owes to them for the fruits that he bought etc, in a book named PAYABLES.
Harry gets an order from a retail shop owner of Fruit Mart, for a shipment of 11 bags of apples, 25 bags of oranges and 32 kgs of grapes. In Oracle Apps, bags and kgs are referred to as
UOM (unit of measure), Fruit Mart is called CUSTOMER and the order is referred to as SALES ORDER. Harry maintains a book called ORDER MANAGEMENT where he writes down all the details of the SALES ORDERS that he gets from his customers.
Say the fruits have been shipped to the customer Fruit Mart. Harry now sends him the details like cost of each bag/fruit, the total amount that the customer has to pay etc on a piece of paper which is called INVOICE / TRANSACTION.
Once the INVOICE has been sent over, the customer then validates this against the actual quantity of fruits that he received and will process the payments accordingly. The invoice amount could be paid as a single amount or could be paid in
installments. Harry’s customer, Fruit Mart pays him in installments (partial payments). So Harry has to make a note of the details like date received, amount received, amount remaining, amount received for what goods/shipments/invoice etc,
when Harry receives the payments. This detail is called
RECEIPT, which will be compared to the invoice by Harry to find how much Fruit
Say Harry is the owner of a wholesale fruit shop. He buys various fruits like apples, oranges, mango's and grapes etc from farmers directly and sells them to retail shop owners and also to the direct customers.
The farmers are referred to as VENDORS/SUPPLIERS in Oracle Applications.
Harry keeps track of all his vendors’ information like addresses, bank account and the amount he owes to them for the fruits that he bought etc, in a book named PAYABLES.
Harry gets an order from a retail shop owner of Fruit Mart, for a shipment of 11 bags of apples, 25 bags of oranges and 32 kgs of grapes. In Oracle Apps, bags and kgs are referred to as
UOM (unit of measure), Fruit Mart is called CUSTOMER and the order is referred to as SALES ORDER. Harry maintains a book called ORDER MANAGEMENT where he writes down all the details of the SALES ORDERS that he gets from his customers.
Say the fruits have been shipped to the customer Fruit Mart. Harry now sends him the details like cost of each bag/fruit, the total amount that the customer has to pay etc on a piece of paper which is called INVOICE / TRANSACTION.
Once the INVOICE has been sent over, the customer then validates this against the actual quantity of fruits that he received and will process the payments accordingly. The invoice amount could be paid as a single amount or could be paid in
installments. Harry’s customer, Fruit Mart pays him in installments (partial payments). So Harry has to make a note of the details like date received, amount received, amount remaining, amount received for what goods/shipments/invoice etc,
when Harry receives the payments. This detail is called
RECEIPT, which will be compared to the invoice by Harry to find how much Fruit
At the end of every month, Harry prepares a balance sheet in a book called GENERAL LEDGER to determine how much profit/loss he
got and keeps track of the money going out and going in.
As the business grows, it becomes impossible to record everything on a paper. To make everybody’s life easier, we have very good tools in the market,
which help the business men to keep track of everything. One such tool is Oracle E-Business Suite.
Oracle Applications is not a single application, but is a collection of integrated applications. Each application is referred to as a module and has it own functionality trying to serve a business purpose.
Few of the modules are Purchasing, Accounts Payables, Accounts Receivables, Inventory, Order Management, Human Resources, General Ledger, Fixed Assets etc.
Here is a high level business use of various modules:
Oracle Purchasing
handles all the requisitions and purchase orders to the vendors.
Oracle Accounts Payables
handles all the payments to the vendors.
Oracle Inventory
deals with the items you maintain in stock, warehouse etc.
Order Management
helps you collect all the information that your customers order.
Oracle Receivables
help you collect the money
for the orders that are delivered to the customers.
Oracle Human Resources
helps maintain the Employee information, helps run paychecks etc.
Oracle General Ledger
receives information from all the different transaction modules or sub ledgers and summarizes them in order to help you create profit and loss statements, reports for paying Taxes etc. For Example: when you pay your employees that payment is reported back to General Ledgers as cost i.e money going out, when you purchase inventory items and the information is transferred to GL as money going out, and so is the case when you pay your vendors. Similarly when you receive items into your inventory, it is transferred to GL as money coming in, when your customer sends payment
Terminology often used in Oracle Applications:
1. Invoice
2. Receipt
3. Customer
4. Vendor
5. Buyer
6. Supplier
7. Purchase Order
8. Requisition
9. ACH: Account Clearance House
10. Sales Order
11. Pack Slip
12.
Pick Slip
13. Drop Ship
14. Back Order
15. ASN: Advance Shipping Notice
16. ASBN: Advance Shipping Billing Notice
17. ATP: Available to Promise
18. Lot/Serial Number
19.
DFF: Descriptive Flex Fields
20.
KFF: Key Flex Fields
21.
Value Sets
22. Organization
23.
Business Unit
24.
Multi Org
25.
Folders
26.
WHO Columns
27.
Oracle Reports
28.
Oracle Form
29.
Workflow Builder
30.
Toad
31.
SQL Developer
32.
SQL Navigator
33.
Discoverer Reports
34.
XML/BI Publisher
35.
ADI: Application Desktop Integrator
36.
Winscp
37. Putty
Made it Simple... Thanks
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