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Bit on Gartner’s Magic Quadrants and 2007 report for ERP Vendors

Posted on November 20th, 2007 by Sanjit Anand ||Email This Post Email This Post

Do you know Gartner, the world’s leading provider of research and analysis about the global information technology industry, published relevant product information, evaluations, recommendations, and measurement services on a wide range of technology issues and trends, and they are using two tools to describe:

Hype Cycles this show the typical progression of an emerging technology in graphical terms, separating hype from reality so technology users can make informed decisions about when and if they should adopt a new technology. It was first introduced in 1995.

Magic Quadrants these are designed to help you choose the right vendor for selected technologies by providing vendor descriptions, market information, and the criteria used to determine vendors’ positions within a market. Determine which vendors are leaders, visionaries, niche-players, or challengers, then discover how vendors perform in relation to each other within a market and gauge where overall markets are going.

This year, in the Gartner’s report title “Magic Quadrant for ERP service providers in North America 2007” they have reported 23 companies and present with there case in there current vendor landscape.

gathner

Source : Gartner

Important to learn, Accenture, CSC, IBM, Deloitte, Capsgemini still placed comfortably in Leader landscape, where few Indian MNC’s now coming into challenger zone.Another big player like EDS seems to be missing from the list.Isn’t?

Read This : http://mediaproducts.gartner.com/reprints/accenture/150514.html

Posted in Misc | No Comments »

Oracle OpenWorld 2007 Presentations : Available for Download

Posted on November 20th, 2007 by Sanjit Anand ||Email This Post Email This Post

Today, in one of post in Eddie Awad’s blog , he mention this year Oracle OpenWorld 2007 sessions presentation are available for public download.

Here are the details

url :http://www28.cplan.com/cc176/catalog.jsp

Login/password: cboracle/oraclec6

Posted in Misc, News | 1 Comment »

R12 SLA: From Product Accounting to Subledger Accounting

Posted on November 16th, 2007 by Sanjit Anand ||Email This Post Email This Post

Most of us are well aware that in Release 12 of Oracle Applications, Subledger Accounting (SLA) has been introduced, which is a Rule-based accounting engine, toolset & repository which is supporting most of Oracle business Suite modules. As we know driver for introduction this is to have an option of allowing multiple accounting representations for a single business event, resolving conflicts between corporate and local fiscal accounting requirements. The Functionality is somehow very similar to Global accounting engine, which oracle does offer for European reporting Need.

purp So What is Subledger Accounting?

• SLA is an intermediate step between subledger products and the Oracle General Ledger
• Journal entries are created in Subledger Accounting and then transferred to Oracle General Ledger
• Each subledger transaction that requires accounting is represented by a complete and balanced subledger journal entry stored in a common data model

yel

Is this Module or what?

It is good to know ,sub ledger Accounting is a Service, not an Application .

The high points of SLA would be:

  • There are no SLA responsibilities
  • Users do not login to SLA
  • SLA is a service provided to Oracle Applications
  • SLA forms and programs are embedded within standard Oracle Application responsibilities
  • SLA provides the following services to Oracle Applications
  • Generation and storage of detailed accounting entries
  • Storage of subledger balances (e.g. third party control account balances)
  • Subledger accounting entries
  • Subledger reporting (e.g. Subledger journal reports, open account balances listing)

bluWhat oracle application Module taking services for SLA?
Most of modules which need accounting entry with finance uses service of SLA Modules.

greThis new Product has these many new functionality such as:

  • Journal Entry Setup and sequencing
  • Date Effective Application accounting Definitions
  • Multiple Accounting Representation
  • Multi-period Accounting
  • Summarization Options
  • Draft and online accounting
  • Replacement for disabled accounts
  • Process category Accounting
  • Transaction account Builder
  • Accrual Reversal Accounting
  • Accounted and Gain/Loss Amount calculations
  • Application Accounting Definition Loader
  • Enhanced Reporting Currency Functionality

redThe overall advantage of SLA can be summarized by oracle as below:

subledgeraccounting1

 

bluGL Flow with Subledger-Level Secondary Ledger

Lets take a case , with a scenario with basic Finance module, you can find how tightly accounting model is separated with transaction model in release 12.

subledger

This is the typical flow within one product with SLA can be best described as:

subledgeraccounting

Posted in EBS Suite, R12, Release12 | 17 Comments »

SCM Subsystem

Posted on November 15th, 2007 by Sanjit Anand ||Email This Post Email This Post

In last post we have understood SCM flow. Let’s talk in term of SCM IT requirement. SCM subsystems are important because this is required to support manufacturing managers in making their decisions so that they can optimize the trade off between capital tied up in stocks and inventories, versus the ability to deliver goods at prices and delivery dates agreed with customers.

A typical flow and SCM cycle can be understood as fig below:SCMFlowinERP

Typically A SCM consists of these sub-systems can be categorize and consist of:

f1Demand Management

This is basically co-ordination sales forecasts from all the players, including sales representatives at the point of sale through production to raw material suppliers, so that everyone is working to the same plan, rather than creating unnecessary safety stocks.

f2Distribution Resources Planning (DRP)

This will Keep track of the status of production and procurement of materials for each order, where the goods are located, what transport and warehousing is in use, what stock to keep and when to re-order.

f3Transport Management Systems (TMS)

This kind of subsystem normally keep the information such as :what modes of transport at what cost are available to the shipper; what costs and timings are associated with each route; the order in which to load transport; optimization of multi-segment deliveries; compliance with documentation required for customs and shippers.

f4Warehouse Management Systems (WMS)

These are the systems which are used to optimize the storage and picking of goods in a warehouse, also includes compliance with carrier and customer documentation standards.

f5 Supplier Relationship Management (SRM)

This kind of subsystem keeps the information about suppliers of direct and indirect materials, such as agreed terms of trade, records of status, records of contacts between the enterprise and the various points of contact in suppliers.

f6 Component Supplier Management (CSM)

Management of lists of preferred suppliers and preferred parts; terms of trade such as delivery and price associated with them; rationalization of existing parts to minimize costs by substituting equivalent parts.

I guess, the next question in mind would what are applications which are going to enable if anyone is going to roll out SCM functionality in Oracle EBS. Keep watching this space.

Posted in EBS Suite, Functional, Oracle Manufacturing | No Comments »

KNOW WHAT IS SUPPLY CHAIN MANAGEMENT (SCM)? : An Overview

Posted on November 10th, 2007 by Sanjit Anand ||Email This Post Email This Post

This is one of the basic areas from management books. In fact lot of people have requested some more information on SCM, OPM and other manufacturing area. therefore,I take this opportunity, as this is one of my favorite topic, as I started my first job in PPC (Production Planning &Control) department of a big steel company a decades ago, so I hope I will surly help in giving a clear picture of SCM. Let’s start with basic and gradually will move into ERP arena:

SCM is defined as combination of art and science that goes into improving the way your company find the raw components that needs to make a product or services and deliver it to customer. In Business word this art and science become functions that an organization undertake.

If you are IT guys you can understood SCM as:

Systems that support manufacturing managers in making decisions that optimize the trade off between capital tied up in stocks and inventories, versus the ability to deliver goods at prices and delivery dates agreed with customers.

In principle and reality, both inwards logistics operations to acquire materials to make products and outwards logistics operations shipping finished goods to final customers are monitored.

bluWHAT EXACTLY IS SUPPLY CHAIN MANAGEMENT OR WHAT IS BASIC COMPONENT OF SCM?

As per Supply-Chain Operations Reference-model (SCOR®) which has been developed by Supply-Chain Council. This model organized and focused on the five primary management

  1. PLAN
  2. SOURCE
  3. MAKE
  4. DELIVER
  5. RETURN

1. Plan: This is vital part of SCM philosophy, where the companies normally need to make strategy for managing all the resource that go towards fulfilling the customer demand for the product and services that they offers. A big piece of planning is developing a set of matrices to monitor the Supply chain so that it would be efficient, cost effective and deliver high quality and value to the customer.

2. Source: It means processes that procure goods and services to meet planned or actual demand. This part of SCM consists of selecting right suppliers that will deliver the good and services that need to create your product. Developing a set of pricing, delivery and payment process with supplier is important. Also this will also take care of managing the inventory of goods, and services you receive from your suppliers, including receiving shipping, verifying them, transferring them into various facilities and authorizing supplier payment.

3. Make: This is basically a step where your company starts fulfilling the request or BUILT for products into finished state to meet planned or actual demand. Schedule activity necessary for production, testing, packaging and preparation for delivery.

4. Deliver: This is also called Logistic Process. This is the processes that provide finished goods and services to meet planned or actual demand, typically including order management, transportation management, and distribution management.

5. Return – This is real pain of SCM model, which defined as processes associated with returning or receiving returned products for any reason.

Typical model can be best described as:

scmmodel

purpWHO IS THE STAKEHOLDER OF SUPPLY CHAIN

These are considered as stake holder of SCM:

  • Customers
  • Your Company
  • Design Partners
  • Material Suppliers
  • Contract Manufacturers
  • Logistic Providers

red1WHAT ARE DRIVERS OF THE SUPPLY CHAIN?

These are the main drivers :

  • Production
  • Inventory
  • Location
  • Transportation
  • Information

1. Production
This driver addressing these questions: what products does the market want? How much of which products should be produced and by when?
This activity includes the creation of master production schedules that take into account plant capacities, workload balancing, quality control, and equipment maintenance.

2. Inventory
This driver addressing these questions: What inventory should be stocked at each stage in a supply chain? How much inventory should be held as raw materials, semi finished, or finished goods?
The primary purpose of inventory is to act as a buffer against uncertainty in the supply chain.

3. Location
This driver addressing these questions: Where should facilities for production and inventory storage be located? Where are the most cost efficient locations for production and for storage of inventory? Should existing facilities be used or new ones built?
Once these decisions are made they determine the possible paths available for product to flow through for delivery to the final consumer.

4. Transportation
This driver addressing these questions: How should inventory be moved from one supply chain location to another? Air freight and truck delivery are generally fast and reliable but they are expensive. Shipping by sea or rail is much less expensive but usually involves longer transit times and more uncertainty.

5. Information
This driver addressing these questions: How much data should be collected and how much information should be shared?

Timely and accurate information holds the promise of better coordination and better decision making. With good information, people can make effective decisions about what to produce and how much, about where to locate inventory and how best to transport it.

oraGET FAMILIAR WITH TOP 10 TERMS, DEFINITIONS AND TERMINOLOGY IN SCM

f1Master Demand Schedule – MDS

The MDS is a consolidation of demand by product and time bucket

f2 Master Production Schedule- MPS

The MPS is a statement of supply required to meet the demand for the items contained in the MDS. The master production schedule defines the anticipated build schedule for all products. The master production schedule also provides the basis for order promising (ATP) function

f3Material Requirements Plan-MRP

The Material requirements planning (MRP) calculates net requirements from gross requirements by evaluating:

  • The master schedule
  • Bills of material
  • Scheduled receipts
  • On-hand inventory balances
  • Lead times
  • Order modifiers

f4Advanced Supply Chain Plan- ASCP

Constrained Based and optimized version of MRP

f5Planned Order

Automatically suggested action from planning engine

f6Consumption

The process of “relieving” the forecast to prevent double counting of demand

f7Drop Ship

Having an order ship directly from the vendor to the customer without physically being in your inventory.

f8Vendor Managed Inventory- VMI

The process of giving the vendor the authority and visibility to determine what your inventory should be

f9Customer Owned Inventory- COI

Where you are managing the customers inventory on your premises and supply as required

f10Work Order/Sales Order

The request that you received from the customer for fulfilling there demand.

greSIMPLE PLANNING CYCLE WITHIN AN ORGANIZATION

A typical planning cycle would start by loading the sales orders, forecast and other demand such internal orders into the master demand schedule (MDS). That demand statement would then be used as the schedule that drives the Master Production Schedule (MPS) . Take a note in regular MRP implementations the MPS is used as the schedule for ATP. Once the MPS is reviewed and updated is used as the schedule to drive the MRP process. The result of the MRP process is planned orders and exception messages. When released from MRP the planned orders for “buy” items become requisitions or purchase orders in the purchasing module and the “make” items become discrete jobs in the Work In Process Module. Once the finished goods are received into inventory it is shipped to satisfy customer orders.

PlanningwithinOrgnization

Scenario I :Sales Order – Forecast Planning Cycle

Forecast Planning

This is the scenario where normally we are building to stock and satisfying sales order demand from stock. Here you will see the difference as planned orders are released to become purchase requisitions for components and work orders for sub assemblies and finished goods. The finished goods are then shipped to satisfy the sales orders.

 

 

 

 

 

Scenario II : Planning – Procurement Cycle

ProcurementCycleIn the Planning-Procurement cycle we normally start where the first part of the planning cycle is complete and we have a planned order for a buy item from MRP. The planned order is released and becomes a requisition or purchase order in the purchasing module. A purchase order is then created from the requisition and sent to the vendor. The vendor would supply the materials. The materials would be received into inventory and the purchase order would be closed.

 

 

 

Scenario III :Planning – Drop Ship Cycle

In the Drop Ship cycle the process is as follows:

  • A sales order is received from the customer.
  • After the sales order is entered a process is run that creates a purchase order that matches the sales orders
  • The item, quantity and required date information on purchase order matches that information on the sales order.
  • The ship to address on the purchase order is the ship to address of the customer.
  • The vendor ships the product directly to your customer. Once the vendor ships the product you receive” the purchase order and that creates the shipping transaction to satisfy the sales order.
  • Matching accounting transactions complete the process

DropShipmentCycle

You can also see technical details for drop ship cycle in my earlier post.

Scenario IV :Planning – WIP Cycle

In the Work In Process cycle after the planning cycle is complete a planned order is released to create a discrete job. Material/components is issued the job or back flushed from inventory. The job is completed from Work In Process to Inventory.

wipcycle

Scenario V : Planning – Outside Processing Cycle

With Outside Processing you could be buying a service, an item or capacity from an outside vendor. The setup for each of these scenarios will be described in the training sessions to follow, however they all follow a similar process. A routing with an outside processing operation is setup.

After the planning cycle is complete a planned order is released to create a discrete job. Once the Discrete job is moved to a outside processing operation, a purchase requisition is triggered. The requisition is imported to Purchasing and a purchase order is created. The details of the discrete job such as job number, assembly number and quantity is tied to the purchase order. The purchase order is sent to the vendor. When the purchase order is received its destination will be shop floor and the assembly will be returned to the next operation on the work order.

OutsideProcessing

This make an end of this discussion. In Next post we will see what are the different subsystem SCM will have and what are the modules which comes under SCM Implementation. Any comment is welcome :)

Posted in EBS Suite, Functional, Oracle Manufacturing | 27 Comments »

Flow ,Discrete & Process manufacturing in ERP ?

Posted on November 10th, 2007 by Sanjit Anand ||Email This Post Email This Post

This is a very basic question for ERP consultants , what is basic difference into two manufacturing operation : discrete manufacturing and process manufacturing . Lets redefined and understand in simple words:

As we know, in ERP prospective manufacturing operation can be broadly classified into two major category:

  • Flow manufacturing
  • Discrete manufacturing
  • Process manufacturing

arrow upDiscrete Manufacturing

discrateDiscrete manufacturing is distinguished by the production of distinct items that use bills of material and routings to determine costs and lead times.

Examples: Automobile manufacturing, computer manufacturing, dishwasher and washing machine manufacturing, etc .

Typically they follows either a Product, Process or a Combination Layout these layouts can be understood like:

  • Product Layout – Processes come to the product . typical example are Ship Building, Car Assembly Line, PC’s, etc.
  • Process Layout – Products go to Process areas Typical Example are Cabinets and Casings, Sub-assemblies, Rubber Mixing, etc.

Is normally a Product that is “Built Up” from components or sub-assemblies.

A note with Oracle Product
Discrete manufacturing is Oracle Applications method to handle the unique problems in manufacturing equipment, like electronics, medical devices or a complicated assembly like the space shuttle as indicated above.

Discrete manufacturing is based on piece parts that are assembled or machined to make larger assemblies.

Oracle Discrete Manufacturing has a great deal of functionality to manage the Bills of Materials, Routings and Engineering changes that are required to adequately track assembly and cost the finished product.

arrow upFlow Manufacturing
Flow manufacturing is also called Lean Manufacturing or JIT(Just-In-Time) and uses the principles of demand flow manufacturing to produce product is required, for customer orders, quickly and to meet the demand exactly on-time.

Usually, in order to use Flow a company needs to have production facilities that subscribe to the principals of Lean Manufacturing. It is necessary to design production facilities so that production lines, resources, machines, and labor are making only what is needed for immediate customer orders.

arrow up

Process Manufacturing

discrate2Process manufacturing is distinguished by a production approach that has minimal interruptions in actual processing in any one production run, or between production runs of similar products. This approach produces multiple unique products in relatively small batches flowing through different production operations throughout the factory.

They typically follows a Process Layout.

They are normally producing a Product that is “Homogeneous” and equally divided for the convenience of packaging.

Typical examples are Food, pharmaceutical and other batched-based manufacturers such as refineries, wineries, etc .

A Note with Oracle Process Manufacturing
The OPM capabilities allow for multiple units of measure because the flexibility in batch production is required in process industries.

Process manufacturing is used at companies that make products that use formulas, receipts and/or have co-products or by products. Typical users of OPM are manufactures of food products or chemicals that have complex internal processes and need a high level of control.

The OPM capabilities allow for multiple units of measure because the flexibility in batch production is required in process industries.

greWhat makes process manufacturing different from discrete?

Process manufacturing uses formulations or recipes. A discrete manufacturer uses Bills of Materials (BOMs). A discrete manufacturer assembles along a routing, whereas a process manufacturer blends in a batch.Apart from these other difference with other factors are summurized as:

difference

bluWhich come under which category ?

industries

 

 

 

Posted in Beginner, Oracle Manufacturing | 15 Comments »

Understanding Global Accounting Engine – Dual posting, Tables, Reports

Posted on November 10th, 2007 by Sanjit Anand ||Email This Post Email This Post

Continuing my last post for AX , here is some more information for Global accounting Engine’s Dual posting and Reporting need. Lets start with Dual posting.

1

Global Accounting Engine (AX) Dual Posting

The Global Accounting Engine’s dual posting functionality allow simultaneous posting into two sets of books (a main and a secondary sets of books).The AX Dual posting (or multiple posting) functionality lets you meet reporting and accounting requirements when you have multiple sets of books with different charts of accounts, calendars, and rules sets.

  • Control Accounts
    The Global Accounting Engine automatically creates detailed balances for control accounts. The balances are calculated for each account with the control account status by period and third party when you run a subledger report. Control accounts are printed on summary and detail balance reports provided by the Global Accounting Engine.
  • Documents Sequencing
    A document sequence uniquely numbers documents generated by an Oracle Applications product. Using Oracle Applications, you initiate a transaction by entering data through a form and generating a document, for example, an invoice. Document sequences can provide proof of completeness. For example, document sequences can be used to account for every transaction, even transactions that fail.

Document sequences can also provide an audit trail. For example, a document sequence can provide an audit trail from the general ledger into the subsidiary ledger, and to the document that originally affected the account balance.

2Table Details

These are the additional tables which keeps the events data.

  • gloabal accounting processAX_SETUP_GLOBAL
  • AX_SETUP_POSTING_BOOKS
  • AX_TRANS_PROGRAMS
  • AX_EVENTS
  • AX_DOCUMENT_STATUSES
  • AX_SLE_HEADERS
  • AX_SLE_LINES
  • AX_BALANCES
  • GL_INTERFACE
  • GL_JE_LINES

 

3AX Reporting

Below is a list of the most important AX Reports:

  • The Daily Journal Book – Line Descriptions report displays fiscal year totals for specified sequences. For both manual and imported journals in General Ledger, the report shows the General Ledger accounting sequence number assigned at the time of posting, instead of the General Ledger document sequence number.
  • The Daily Journal Book – Header Descriptions report is sorted by sequence name, General Ledger date, and accounting sequence number within the range of requested balancing segments. The report provides totals for the range of balancing segments requested, but not subtotals for each balancing segment.
  • The Final Daily Journal Book – Header Descriptions report allow the review of all accounting entries for your set of books by sequence name and period.
  • The Supplier/Customer Balance by Account/Accounting Flexfield report allows reviewing information about balances and period activities by account and supplier/customer for one or more accounting periods. This report lets you justify your balances in General Ledger, Payables, and Receivables.

4 Limitations of AX

  • It has been designed based on primary transactions in Local GAAP.
  • Its needs same calendar in primary and secondary set of books
  • The other limitation is that no user access to account transformation rules that mean very limited functionality.
  • Intensive setup and maintenance, that makes a technical difficulty.
  • Separate release and patch sets. This support issue is yet another limitation.
  • Non-Standard as it is replaced by GL posting process,separate additional tables.
  • Not Complete as only limited to few like AP, AR and in some case France can use INVENTORY as sub-ledger modules

Posted in Functional, Oracle General Ledger, Oracle Product | 4 Comments »

Understanding Global Accounting Engine ( Product AX)

Posted on November 9th, 2007 by Sanjit Anand ||Email This Post Email This Post

1

Why is the Global Accounting Engine needed?

The Global Accounting Engine is needed for European foreign subsidiaries as they are required to do reporting in foreign countries.

The Global Accounting Engine produces European reports not available in the standard accounting applications.

It is Legal compliance tool for some international accounting and audit requirements.

  • Accounting transformation for inventory/purchasing
  • Audit Trail:
    • adds required sub-transactions (cash reversals,adjustments, and others)
    • additional GL sequences across AR/AP
    • Control accounts for sub-ledger-GL reconciliation

2 What is functionality of the Global Accounting Engine ?

The Global Accounting Engine provides you with features to satisfy the following basic business needs. You can:

  1. Comply with accounting regulations of any country. Some accounting entries are legal in one country but not in another.
  2. The Global Accounting Engine lets you choose the right accounting schemes for your country.
  3. Define accounting rules per set of books.
  4. Post different accounting rules to different sets of books.
  5. Generate different accounting entries from the same business transaction into different sets of books.
  6. Perform synchronous multiple set-of-book accounting. The multiple set-of-book accounting is synchronous because it ensures that a Business transaction is either posted in all related set of books or is not posted in any set of books.
  7. Comply with legal and fiscal audit trail requirements.
  8. Store all accounting entries in the same structure and format for all applications. An accounting entry always consists of a header and two or more accounting entry lines. The Global Accounting Engine uses this information to provide accurate reconciliation reports in applications such as Payables and Receivables.
  9. Reconcile your subledger accounting system with General Ledger. The Global Accounting Engine provides additional reports such as daily journal reports. Reports are used when a company needs to match the amounts in the subledgers such as Payables, Receivables, and General Ledger.
  10. Define journals rather than using hard-coded categories. These journals are numbered sequentially to comply with legal requirements.
  11. Assign sequential numbers to the defined journals across applications.
  12. Each accounting entry has a unique identifier as well as other header information. This accounting number is the primary key for your accounting lines. You can use the same numbering in applications such as Payables and Receivables.
  13. Audit and control period and fiscal year closing procedures.
  14. The Global Accounting Engine provides a new mechanism for closing periods that ensures a complete and gapless numbering is generated as required in some countries.
  15. Create journal entries and detailed balances for control accounts.
  16. Control accounts are General Ledger accounts that you can access only from subledger applications such as Payables and Receivables. The balances are calculated for each account with the control account status and third party period and identification. A third party can be a supplier in Payables or a customer in Receivables. The Global Accounting Engine uses these structures to provide legal balance reports that are the same across all applications.
  17. Secure subledger accounting entries. You can either secure accounts individually or secure the procedure to create accounting entries. To secure subledger accounting entries, use control accounts to define accounts. A control account is only accessible from the subledgers. Securing your entries ensures a valid audit trail is on paper. The secured posting makes sure that you are only given access to a range of steps involved in the posting cycle.
  18. Print reports that correspond to country-specific accounting practices.
  19. Print legal subledger accounting reports .

3 Which are potentially implementation using global accounting Engine(AX)?

AX is mainly used to comply with the European legislations mainly.Any European Implementation which is operating in more countries will have options to use.

4 Is Global Accounting Engine mandatory for Italy, France, Greece or Portugal?

Oracle has suggested for 6 countries (France, Italy,Greece, Portugal, Spain, Austria)

  • AX has replaced localizations for France, Italy.
  • AX provides legal report formats for specified countries.

5 How Global Accounting Engine works:

Operationally, the Global Accounting Engine changes the way in which transactions are posted from the sub-ledger to the General Ledger. For transactions from AR, AP, the standard GL Interface is switched off and postings are done via the Accounting Engine translator. A sub-ledger accounting entry is created for each Event, which represents a change in state of a document, e.g. an Invoice. Accounting Rules are used to translate these events and to create entries in the AX tables. A report is run to create the sub-ledger balances in AX by Third Party and accounting period. After AX translation is run, the accounting entries are transferred to the General Ledger via the normal GL interface tables.

The big difference in using AX is that instead of posting transactions direct to the GL Interface table, they are transferred via the AX Engine where they are translated before being transferred to the General Ledger. This can be shown as:

gloabal accounting process

This ends of Global Accounting Engine(Product AX) discussion, will see some more information on dual posting and some important technical details in next post. Till than keep watching this space :)

Posted in Functional, Oracle General Ledger, Oracle Product | 7 Comments »

Deep Drive : Customer Interface in AR

Posted on November 8th, 2007 by Sanjit Anand ||Email This Post Email This Post

Lot of people requested some more information for customer import. So I decided to clubbed together, so here to go:

Lets start with Customer ..why it is important in your business.

As per encyclopedia the customer is defined as:

“A customer is someone who makes use of or receives the products or services of an individual or organization.” Its means it is one who become a entity in your business world, irrespective of your line of business. If you are manufacturer the customer is one to whom you provide the product and get the money or services for which your get paid.

Time to time the customer definition has been changed and now in today economy it can be redefined as:

A customer..may include users, consumers, demanders, commanders, and requestors. Any person or entity who interacts directly or indirectly with any business system, thus it can be a client within internal departments, a supplier from the procurement process, an employee, or someone who is ringing up the cash register.

What information is important to keep in Business?

Typical information required for any customer is address, contact, bank , profile,class. Oracle standard form does have more than 8 tabs which hold most of the information. A typical flow of customer setup in Oracle is as;

customersetup

Fig: Standard Setup process for customer

customersetup1

Fig : Entity Model for Customer Setup

What is Customer Interface ?

Customer Interface is a oracle seeded tool that is used to import and validate current or historical customer information from other systems into Receivables. Once customer information is imported into the system, you can use Customer Interface to import additional data for that customer (such as additional contacts or addresses) and to update existing information. This is yet another options to enter Customer information other than manually update and enter new information using the Customer windows.

Customer Interface and Customer in pre 11i and 11i

If you are coming from some old version, if have been noticed few things has been changed:

  • Customer tables have changed, to move customer in TCA model, it means
    • The HZ tables
    • The role of Parties
      • Note:Added in order to track prospective customers Due to CRM integration and adds “benefit” of having all customer “groups” stored in one location.

11i tables used by Customer Interface

  • Pre 11i versions used only 12 tables
  • 11i version uses 23+ tables
  • Only 4 of those tables remain the same
  • Main Customer tables have changed
  • Revised look and feel to Customer screen, too

The Change

Here is significant changes has been noticed from pre 11i and r11i version.

arrow upFIND screen

in 11i Find window automatically appears while calling customer screen.

10

11cust

most important , the Match Results window now is included in 11i, and it represnt multiple lines due to Parties and Accounts:

cusseacrch

arrow upCustomer screen

107custscreen

11icustome

Customer Tables

  • Previous Tables that have changed
    • RA_CUSTOMERS
    • RA_ADDRESSES
    • RA_SITE_USES
    • RA_PHONES
    • RA_CONTACTS
    • AR_CUSTOMER_PROFILES
    • RA_CUSTOMER_RELATIONSHIPS
    • AR_CUSTOMER_PROFILE_AMOUNTS
  • Tables that remain the same
    • RA_CUST_RECEIPT_METHODS
    • AP_BANK_BRANCHES
    • AP_BANK_ACCOUNTS
    • AP_BANK_ACCOUNT_USES

TCA model – how its drived

  • RA_CUSTOMERS, previously the main customer table is now a view.This become view which consists of data in HZ_CUST_ACCOUNTS and HZ_PARTIES tables.
  • New Customer Tables – also known as HZ Tables
  • The new HZ Customer Tables have tables for Customer Accounts and Parties

Customer Table Vs HZ Tables

Here is summarize information for both for them:

customerdatamapping

Considering Customer as Parties

  • HZ_PARTIES stores information about organizations, groups, and people.
  • If a party becomes a customer then the information for the customer is stored in the HZ_CUST_ACCOUNTS table.
  • A Party record in the Parties table can have multiple customer account records in the Customer Accounts table.
  • One row is created in HZ_PARTIES for every customer record that is imported through the Customer Interface.
  • CRM uses the customer module making it a requirement for all customers to have a party id and customer id.

Customer Interface : The Flow:

The following diagram shows how customer information is imported into the customer tables.
CustomerImport

11i Customer Interface Vs Oracle Base table

Here is summarize information for interface Vs base table. Once Customer Import get completed successfully , the data moved to these tables:

customerinterfaceFlow

Please take a note, the bank model has been changed in r12, this will have till 11.5.10.2. If you are looking for R12 , refer to trm guide.

Where to start for Customer Interface

1.The first steps would be your is preparing Receivables setup activity

  • Be sure to set up new data in Receivables that the Customer Interface should import. For example:
    • AutoCash Rule Sets
    • AutoInvoice Grouping Rules
    • Collectors
    • Customer Addresses
    • Customer Bank Information
    • Customer Exemptions
    • Customer Profile Classes
    • Demand Classes
    • Dunning Letter Sets
    • Freight Carriers
    • Payment Methods
    • Payment Terms
    • Statement Cycles
    • Tax Codes
  • Be sure to also set up Lookups in Receivables that the Customer Interface should import. These are the lookups:
    • Countries
    • Site Use Codes
    • Credit Ratings
    • Risk Codes
    • Account Statuses
    • Communication Types
    • Customer Classes

2. Next is to map the Interface Tables

  • RA_CUSTOMER_INTERFACE_ALL
    • ORIG_SYSTEM_CUSTOMER_REF
    • CUSTOMER_NAME
    • CUSTOMER_STATUS
    • INSERT_UPDATE_FLAG
    • CUSTOMER_NUMBER
    • ORIG_SYSTEM_ADDRESS_REF
    • PRIMARY_SITE_USE_FLAG
    • SITE_USE_CODE
    • ADDRESS1
    • COUNTRY
    • LOCATION
  • RA_CUSTOMER_PROFILES_INT_ALL
    • CUSTOMER_PROFILE_CLASS_NAME
    • ORIG_SYSTEM_CUSTOMER_REF
    • INSERT_UPDATE_FLAG
    • CREDIT_HOLD
    • ORIG_SYSTEM_ADDRESS_REF
  • RA_CONTACT_PHONES_INT_ALL
    • ORIG_SYSTEM_CUSTOMER_REF
    • ORIG_SYSTEM_TELEPHONE_REF
    • TELEPHONE
    • TELEPHONE_TYPE
    • INSERT_UPDATE_FLAG
    • ORIG_SYSTEM_ADDRESS_REF
    • ORIG_SYSTEM_CONTACT_REF
    • CONTACT_LAST_NAME
  • RA_BANKS_INTERFACE
    • ORIG_SYSTEM_CUSTOMER_REF
    • PRIMARY_FLAG
    • START_DATE
    • BANK_ACCOUNT_NAME
    • BANK_ACCOUNT_CURRENCY_CODE
    • BANK_ACCOUNT_NUM
    • BANK_BRANCH_NAME
    • ORIG_SYSTEM_ADDRESS_REF
  • RA_CUST_PAY_METHOD_INTERFACE
    • ORIG_SYSTEM_CUSTOMER_REF
    • START_DATE
    • PAYMENT_METHOD_NAME
    • PRIMARY_FLAG
    • ORIG_SYSTEM_ADDRESS_REF

3. RUN the Import Program

  • Run Import after AR Customer Interface tables have been populated
  • Program will validate the data in the interface table before creating records in Receivables
  • Run the Customer Interface process through the Submit Request window
  • But, a separate navigational path is also provided
    Interfaces -> Customer
  • Check output file for errors

erroroutput

  • Make corrections and repeat import process

Not Surprise , if you get these….Common Errors..very common

  • a3: Bill_To_Orig_Address_Ref is not a valid bill-to address
    • Verify the Bill-To address reference is valid. Keep in mind that when using the bill-to reference with a ship-to address record… the bill-to must already exist in Receivables.
    • Note: Ran into this issue. Try running bill-to records through the interface first and ship-to records as second batch – this will resolve the error. Do not Interface with both in the same batch.
  • a1:Customer record for insert must have validated profile record defined
    • New customers and each Bill-To record must have a customer level profile in the RA_CUSTOMER_PROFILES_INT_ALL table.
  • a8: Conflicting profile classes specified for this customer/site
    • Profile classes for customer and bill-to must be the same. Sites cannot have a profile class different from the customer.
  • J1: Site_USE_CODE is not updateable.
  • J3: LOCATION is not updateable.
  • J2: PRIMARY_SITE_USE_FLAG is not updateable.
    • Keep in mind that site_use_code, primary_use_flag, and location may not be updateable through the Customer Interface
  • A3: Customer reference for insert is already defined.
  • A5: Customer Number already assigned to a different customer.
    • Customer reference and Customer number are values that must be unique. Verify the customer reference or customer number does not already exist for another customer.

Tips and Technique

1. Check out some of the Profile Options hitting Customer Import

  • HZ: Generate Party Number
    • This the profile option can be updated at Site, Application, Responsibility and User levels.This profile option determines whether party number should be auto-generated. If value is ‘No’,means party number must be passed in by the user else if ‘Yes’ or if the value is not set, party number will be auto-generated.
  • HZ: Generate Party Site Number
    • same as above for party site number set at all leval.
  • HZ: Internal Party
    • This profile option is used as a part of CRM setup. This must be set if CRM is installed. It is used for data migration purpose.
  • HZ: Generate Contact Number
    • This profile option determines whether contact number should be auto-generated.If the value is ‘No’, contact number must be passed in by the user. If the value is ‘Yes’ or if the value is not set, contact number will be auto-generated.

2. Automatic sequence number for customer number

Many times AR department is not like oracle seeded number which start by default 1000.Options are there:

From R11 and 11i, you cannot change the sequence via the forms and therefore any change that you make to the sequence would have to be
through SQLPlus and that would not be supported.

To set the sequence number

Step 1. In the Application Developer responsibility,
Menu: Application=>Database=>Sequence
Step 2. Query on sequence RA_CUSTOMERS_NUM_S
This will bring up the sequence for the customer numbers and you can enter the number that you want it to start from.

To set automatic numbering for customer after setting the sequence:

Step 1. Menu:=>System=>System Options
Step 2. Region – Invoicing and Customers
Step 3. Check the box for Automatic Customer Numbering.

3. When doing Migration from other system, adviced to use TRIM Function

  • When loading interface tables remove all trailing spaces from import data.
    Example: LTRIM(RTRIM(customer_name))

4.If importing large number of customers, run in smaller batches instead of all at once.

Oracle benchmark is about 10,000 records per batch is ideal, it is suggested to keep the batch size small.

5.When rolling out in Multi-Org , then you must populate the org_IDs in the interface tables and run the customer interface for each organization set-up responsiblity.


Posted in Functional, Oracle Receivable, Technical | 51 Comments »

FSG – What Is It?

Posted on November 7th, 2007 by Sanjit Anand ||Email This Post Email This Post

Do you know many financial reports have been written using Oracle’s Financial Statement Generator in Oracle EBS since very begining. This is one of robust tool that allows us to create reports which meet user defined criteria. Lets take quick overview of FSG and its usage.

What Are Oracle FSGs?

FSG is short form of Financial Statement Generator.

In brief , is a powerful reporting engine that supports interchangeable report objects, server-based processing for high performance, and report scheduling for efficient use of system resources.

A user defined report that allows for the rollup of GL Account Balances (i.e. combinations of accounting segments –GL Code Combinations) into logical groupings for reporting

The FSG allows you to?

  • This is End user tool , which enables end business user for financial reporting without any programming
  • Most of these reports are oriented toward financial statements
  • These are very very easy to use :-)
  • Transfer accounting information to a popular spreadsheet if you prefer to use your personal computer for analysis and planning.
  • Report on both translated and entered foreign currency amounts.
  • Access a wide variety of standard management and accounting reports for the detail information you need, including chart of account listings, journals, general ledgers and trial balances.
  • Define the complex financial statements you need to analyse your business,including responsibility reports for business units, profit centres and cost centers.
  • The good things is that all these reports run through concurrent manager
  • Most important there is no additional setup required
  • We can design our reports to meet your business needs
  • Design to print directly to MS Excel
  • Schedule reports to run directly from the application

“You can’t do what with FSG?”

  • Limited flexibility in formatting
  • Access GL balances only – no details
  • Minimal security

What are the reports which is based out of FSG Reports

  • Financials-P&L, Bal Sht, Cash Flow, Rev/Exp detail, cost center detail
  • Auditor Schedules – trial balance mapped to financial stmts
  • Income tax workpapers
  • Partial trial balances
  • Income Statement

What are the FSG Component or Structure

  • Row Sets
  • Column Sets
  • Content Sets
  • Row Orders
  • Display Sets
  • Reports
  • Report Sets

redarrow-1Row Set

  • Description to appear on left hand side
  • Define accounting flexfield ranges or summary accounts here
  • Define row calculation – total, etc.

redarrow-1What are the Column Set

  1. Column Sets typically define the format and content of the columns in an FSG report
  2. Oracle provides seeded column sets, or you can build your own

Column Set Attributes
-The commonly assumed attributes for a column set are:
-Time period (PTD, QTD, YTD, etc)
-Account type (Actual, Budget or Encumbrance)
-These two elements are defined by an Amount Type

What is Column Set: Proforma

Proforma is an accounting term that refers to an annual fiscal amount that is comprised of actual amounts and budget amounts together.

redarrow-1What is a Content Set?

  • Content Sets are used to override row/column account assignments and display types to create multiple variations of existing reports
  • You can generate many similar reports in a single run by using content sets
  • Use to “expand” a range to give multiple values on one report OR separate reports for each value in the range
  • Override applied separately to each segment in flexfield

redarrow-1What is a Row Order?

  • Row Orders are used to control how detail rows are displayed and/or sorted on a report
  • Used with Row Set expand and Content Sets
  • Allow user to expand detail of a row
  • Can display
    • Segment value
    • Segment description
    • Both
  • List alphabetically or numerically

redarrow-1Report Display Group

  • Grouping of rows or columns i.e. “hide column 20”
  • Specify a sequence number range from your row set or column set i.e. from 20 to 20
  • Used in your display set

redarrow-1Report Display Set

  • Assign Display Group(s) to your Set i.e. “display column 1, 3, 4”
  • Can assign multiple row and/or column groups to one set i.e. “hide column 20”
  • For each assignment, can specify whether to display the values on the report (Display = Yes) or (Display = No)

The Rule of Thumb for FSG

One FSG = One row set + one column set + one content set

Underline technology of FSG?? any guess , C, SQL, Java…

Important to know FSG reports are created from a program written in ‘C’ code, not from Oracle Reports, as is the case with standard reports. Many modules and tables are used to create reports based on the definition and component of a particular FSG.

What is FSG (Financial Statement Generator) Controller Program?

The FSG (Financial Statement Generator) Controller runs when you generate an FSG with a content set ‘Type’ set to Parallel. The FSG Controller kicks off the sub requests for the FSG’s that are created with the content set.

What is in Background–The FSG Query

As these report are developed in C, it’s impossible to break the code, but if you do some trace on you will find , the code is based out of GL balances table, addition to the some other tables which keeps the structure on the front end.

here is the hidden query:

SELECT
nvl(bal.PERIOD_TYPE, ”),
nvl(bal.PERIOD_YEAR, -1),
bal.PERIOD_NAME,
nvl(bal.PERIOD_NUM, -1),
nvl(bal.PERIOD_NUM, -1),
bal.ACTUAL_FLAG,
decode(cc.TEMPLATE_ID, NULL, ‘N’, ‘Y’),
nvl(bal.BUDGET_VERSION_ID, -1),
nvl(bal.ENCUMBRANCE_TYPE_ID, -1),
bal.CURRENCY_CODE,
bal.SET_OF_BOOKS_ID,
nvl(bal.TRANSLATED_FLAG, ”),
nvl(bal.PERIOD_NET_DR, 0) -nvl(bal.PERIOD_NET_CR, 0),
nvl(bal.PERIOD_NET_DR, 0),
nvl(bal.PERIOD_NET_CR, 0),
nvl(bal.QUARTER_TO_DATE_DR,0)-nvl(bal.QUARTER_TO_DATE_CR, 0),
nvl(bal.QUARTER_TO_DATE_DR, 0),
nvl(bal.QUARTER_TO_DATE_CR, 0),
nvl(bal.BEGIN_BALANCE_DR, 0) -nvl(bal.BEGIN_BALANCE_CR, 0),
nvl(bal.BEGIN_BALANCE_DR, 0),
nvl(bal.BEGIN_BALANCE_CR, 0),
nvl(bal.PROJECT_TO_DATE_DR, 0) -nvl(bal.PROJECT_TO_DATE_CR, 0),
nvl(bal.PROJECT_TO_DATE_DR, 0),
nvl(bal.PROJECT_TO_DATE_CR, 0) ,
nvl(SEGMENT1,”),
nvl(SEGMENT2,”),
nvl(SEGMENT3,”),
nvl(SEGMENT4,”),
nvl(SEGMENT5,”),
nvl(SEGMENT6,”),nvl(SEGMENT7,”)
FROM GL_BALANCES bal,
GL_CODE_COMBINATIONS cc
WHERE bal.CODE_COMBINATION_ID= cc.CODE_COMBINATION_ID
AND cc.CHART_OF_ACCOUNTS_ID= 118
AND bal.SET_OF_BOOKS_ID= 1
AND nvl(bal.TRANSLATED_FLAG, ‘x’)in(‘Y’,’N’,’x’)
AND cc.TEMPLATE_IDis NULL
AND ( (nvl(SEGMENT3,”) >= ‘4001’
AND nvl(SEGMENT3,”) <= ‘5999’)OR (nvl(SEGMENT3,”) >= ‘6020’ AND nvl(SEGMENT3,”) <= ‘6370’) OR (nvl(SEGMENT3,”) >= ‘6390’
AND nvl(SEGMENT3,”) <= ‘7250’)OR (nvl(SEGMENT3,”) >= ‘7510’ AND nvl(SEGMENT3,”) <= ‘9100’) OR (nvl(SEGMENT3, ”) in (‘9310′,’9320’)))AND ( (nvl(SEGMENT2,”) >= ‘000’
AND nvl(SEGMENT2,”) <= ’01’))
AND((bal.period_name in (‘Jun-07′,’Jun-07’)
AND ((nvl(bal.period_name,”) = ‘Jun-07’
AND((bal.ACTUAL_FLAG= ‘B’
AND bal.BUDGET_VERSION_ID= 1111
AND(bal.PERIOD_NET_DR!= 0 or bal.PERIOD_NET_CR!= 0))OR((bal.ACTUAL_FLAG= ‘B’
AND bal.BUDGET_VERSION_ID= 1111)OR((bal.ACTUAL_FLAG= ‘A’)) ))) OR(nvl(bal.period_name,”) = ‘Jun-07’
AND((bal.ACTUAL_FLAG= ‘A’)
OR
( (bal.ACTUAL_FLAG = ‘A’
AND (bal.PERIOD_NET_DR != 0 or
bal.PERIOD_NET_CR != 0))))))
) )
< /P > < /P >

The data is loaded into memory, and then sorted according to report format

How do you define a FSG Report?

  • Reports are created by specifying a combination of report components (ie Row Set, Column Set, etc). Typically, values specified when defining a report override values specified at the individual component level
  • The value entered in the Title field will appear at the top of the report

Where to run FSG Reports:

In Oracle EBS Running FSG Reports can be achieved from 3 different ways:

  • Run Financial Reports form
  • Concurrent Manager
    • The name of the request is “Program -Run Financial Statement Generator”
  • ADI’s Request Center

Few more to know

arrow upOnline Report Requests
You can request FSG reports on-line using only a few keystrokes. For example, you can choose from a list of report sets or predefined reports that Oracle General Ledger displays in a pop-up window. Or, you can create an ad hoc report by selecting from a list of predefined report components.

arrow upException Reporting
The Financial Statement Generator Exception Reporting feature allows you to highlight information requiring special attention. You can define the exception criteria and how you want to flag the rows in your report that you want noticed. This makes it easy to choose to display only the exception rows in your reports.

arrow upResponsibility Reporting
It is possible to construct one report to serve the summary reporting needs of multiple managers. With Responsibility Reporting you can ensure that each level of management spends time reviewing only the necessary level of detail.

Posted in Finance, Functional, Oracle General Ledger | 6 Comments »

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