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SEPA@Oracle EBS :’ Out of the Box’

Posted on September 30th, 2008 by Sanjit Anand ||Email This Post Email This Post

Nine months since the launch of SEPA, Oracle has finally released patch for SEPA Credit Transfer (SCT) for much demanded need for European EBS customer.

dgreybarrowHigh Points of SEPA Project

Lets recap some of high points of SEPA project.

  • Objective: Harmonize electronic payment schemes according ISO 20022 rules.
  • Countries: Euro zone countries
  • Transactions: Only Euro transactions.
  • Period: From January 1, 2008.The goal of EPC is to make SEPA mandatory from 2011

dgreybarrowSEPA support at Oracle

  • Oracle plan is support in major product(EBS,Fusion, Enterprise) lines
  • Oracle plan is to support only two types of SEPA messages in most of these products:
    • Customer Credit Transfer Initiation
    • Customer Direct Debit Initiation
      • For Availability of these functionality , check out documentation of respective products.

dgreybarrow SEPA@ EBS

Oracle EBS functionality for SEPA messages customer credit transfer initiation (pain.001.001.02) is based on the ISO20022 format. ISO20022 format have these benefits;

  • Batch booking
  • Grouping : This reduce the number of transmitted files
  • Remittance message
  • End to end id . This will ease reconciliation and referencing

dgreybarrowSEPA messages with Oracle EBS Release dates for 11.5.10 and 12

These are summary of different SWIFT message.


Fig 1: SEPA swift Message

Out of these list Oracle EBS supports for both Customer Credit Transfer(pain.001.001.02 ) as well as Customer Direct Debit (pain.008.001.01)

Here are the summary of information for SEPA out-of-box Functionality in EBS.

RElease Date

Fig 2: Oracle Support for SEPA

dgreybarrowSEPA availability in EBS

The SEPA Credit Transfer Initiation Message is available for R11.5.10 via Patch 6741280.Customer using 11.5.10 can get the functionality enable by applying patch.


dgreybarrowWrapping up

  • The SEPA out-of-box functionality will be released as patches
  • Jan 2008 – Jan 2010 is a official transition period
  • Extensive test is required with bank when you are utilizing this functionality.

Will keep you posted for any updates.:)

dgreybarrowSimilar Post

dgreybarrowOracle white paper

Posted in SEPA | No Comments »

UPS Integration

Posted on September 29th, 2008 by Sanjit Anand ||Email This Post Email This Post

The integration with United Parcel Service (UPS) can be described as a collaboration between two companies that have provided its customers with proven transportation services, coming together to provide a common solution for those customers who use both Oracle Shipping Execution and UPS,

The Integration will be in the form of API’s Oracle-UPS APIs is a set of programs which integrate shipping information, provided by UPS Online Tools into Oracle Applications suite to help customers streamline operations in the fulfillment cycle.

Oracle – UPS integration will enable Oracle customers to:

  • Verify address/postal code for their shipment.
  • Inquire about time in transit for ground shipments.
  • Get shipping costs for deliveries.
  • Track the packages after shipment.

Oracle-UPS APIs will be used throughout the Oracle ERP application suite. Order Management and Customer Relationship Management (CRM) Applications will use these APIs to verify address and postal code and to provide customers with shipping service selection while taking orders.

Shipping Execution Applications will use these APIs to integrate UPS functionality seamlessly into the Oracle Shipping functionality.

Posted in Oracle Manufacturing | No Comments »

Oracle ‘ Exadata’

Posted on September 25th, 2008 by Sanjit Anand ||Email This Post Email This Post


This year in OOW 2008, Oracle CEO Larry Ellison announced a new storage server product, Exadata, a hardware/software solution for offloading I/O processing to proprietary storage nodes. This is first time when Oracle moved in hardware side.Exadata is joint effort by Oracle and HP .

Oracle has put up in 22 page paper. The newly Exadata performs joins between large tables and small lookup tables, a very common scenario for data warehouses with star schemas. Read details

Take a note , current release is limited for data warehouse.

dgreybarrowMore on Oracle Exadata Architecture

Posted in News | No Comments »

A bit on SEPA – IBAN & BIC

Posted on September 22nd, 2008 by Sanjit Anand ||Email This Post Email This Post

SEPA in system context have things which is really important.

  1. IBAN Code
  2. BIC Validation
  3. SEPA customer credit transfer, based on the ISO20022 format (XML)

So lets see why IBAN and BIC is so important.Take a note, SEPA schemes use BIC and IBAN codes to uniquely identify bank accounts

dgreybarrow IBAN (International Bank Account Number)

The IBAN is provided by the bank servicing the account.

It should not contain any spaces when it is stored electronically. When printed on paper, however, it is usually expressed in groups of four characters, the last group being of variable length.

It consists of:

  • The ISO code (two letters) of the country in which the bank account is held and a two-digit check number;
  • The domestic Basic Bank Account Number (BBAN) (up to 30 alphanumeric characters).

Total IBAN length may not exceed 34 characters.

dgreybarrow BIC (Bank Identifier Code)

The BIC is the unique identifier for banks within the European Union.The BIC is regulated by ISO 9362

It consists of 8 or 11 characters, which include:

  • A bank code (four characters)
  • A country code (two characters)
  • A location code (two characters)
  • if applicable, a branch code (three characters)

dgreybarrowSimilar Post

Posted in SEPA | 3 Comments »


Posted on September 21st, 2008 by Sanjit Anand ||Email This Post Email This Post

Banks and their corporate customers are about to enter an era of profound global business change.

In January 2008, foundations were laid for a Single Euro Payments Area (SEPA) – a process that aims to deliver harmony in all financial transactions across Europe, and create the conditions for much greater standardization in the movement of money across the world. With this note, lets take a insight view of SEPA.

“The Single Euro Payments Area (SEPA) will be the area where citizens, companies and other economic actors will be able to make and receive payments in Euros, within Europe, whether between or within national boundaries under the same basic conditions, rights and obligations, regardless of their location.”

dgreybarrow What is all the fuss about SEPA?

As its well known, Europe has had a common currency and monetary policy since the Euro was introduced in 1999 and Since 1 January 2002, consumers have been making cash Euro payments everywhere in the Eurozone.However, non-cash payments between countries – mainly credit transfers, and credit and debit cards have been expensive and complicated to transact, and a barrier to European monetary integration. There is currently no robust mechanism for a direct debit
between countries.

Therefore, The Single Euro Payments Area (SEPA) project is designed to eliminate national differences in payment instruments and processing infrastructures in Europe,and harmonies fees for cross-border and domestic Euro transactions.

dgreybarrow SEPA Journey


It all started in the year 2002 as an initiative to transform European banking Infrastructure by creation of a European Payments Council (EPC). The purpose of such initiative was to define new rules and frameworks and simplify cross border complex payments process across Europe. This project aimed at achieving harmony between national and international payments in non-cash mode. European banking industry used to face severe losses in the process of cross border transactions. This led the banks to create the EPC.

SEPA aims at providing a common platform for all the associated members to make and receive payments in a single currency (i.e. euro) within Europe irrespective of their base location. SEPA project involves key members like European Commission (EC) and European Central Bank (ECB) supported by the European Payment Council (EPC).

dgreybarrow About European Payments Council (EPC)

It is a European governing body, which consists of more than 50 banking institutions formed to standardize the payments mechanisms in Europe. It is the decision-making and coordinating body, which is responsible for issues related to payment systems in the European Banking industry.

dgreybarrow Mission SEPA

  • It aims to provide a single area for all payments across Europe.
  • Single Account, single card mechanisms irrespective of country

dgreybarrowSEPA Project

As per website note, SEPA implementation schedule was split into three (overlapping) phases from a banking perspective:

  • Design Phase (January 2004 -June 2006)
    • Establishment of the rules, practices and standards for new payment instruments.
  • Implementation Phase (June 2006 –November 2009)
    • The banks design and test new product offerings under SEPA
    • Participating countries have to set up national implementation and migration bodies to ensure smooth roll out of the SEPA infrastructure
    • Launched in January 2008:
    • SCT (SEPA Credit Transfer)
    • SCF (SEPA Cards Framework)
    • Scheduled for launch at end of 2009:
    • SDD (SEPA Direct Debit).
  • Migration Phase (January 2008 – December 2010)
    • The cross-over period between the old and new instruments, ensuring a gradual market-driven migration to SEPA
    • This phase includes set-up of PEACHs (Pan-European Automated Clearing House).

Therefore this third phase is more meaningful to corporate who are running there accounting system in ERP and they must be make sure they should not impacted by product limitation and avoid penalties as there is Europe wide mandatory requirement for non-compliance. These penalties would be leveled for each individual payment, which would be substantial across 16 countries.

dgreybarrowSEPA Consist of:

  • The single currency
  • A single set of euro payment instruments – credit transfers, direct debits and card payments
  • Efficient processing infrastructures for euro payments
  • Common technical standards & business practices
  • A harmonized legal basis
  • Ongoing development of new customer-oriented services

dgreybarrowSEPA coverage area

As SEPA will be introduced on a phased basis. Thirty-one countries are currently committed to SEPA: the 27 EU member states, the three other European Economic Area countries (Norway, Iceland and Liechtenstein) and Switzerland.[source Website]

Currently only 16 counties under coverage area.

  • Austria
  • Belgium
  • Germany
  • Spain
  • Finland
  • France
  • Greece
  • Ireland
  • Italy
  • Luxembourg
  • Netherlands
  • Poland
  • Portugal
  • Sweden
  • Slovenia
  • United Kingdom

dgreybarrowWhat are the different payment Instrument that cover in SEPA

There are four types of payment Instrument

  1. SEPA Credit Transfer
  2. SEPA Direct Debit
  3. SEPA Card
  4. SEPA Cash

dgreybarrowStandardization -Addressing the SEPA schemes Requirements

The SEPA payment platform supports different schemes for both credit transfers and direct debits.

New schemes have been developed for credit transfers and direct debits that describe the technical and functional protocol for exchanging credit transfers and direct debits between two banks using formats and procedures. The formats are based on the ISO 20022 XML standard developed by SWIFT.

SEPA requires common information (‘data elements’) for SCTs and SDDs, outlined in the SEPA Credit Transfer Rulebook and SEPA Direct Debit Scheme Rulebook respectively.


dgreybarrowSEPA within ERP

SEPA will make it possible for ERP systems to be better integrated and to communicate better with the bank.


SEPA support is required in Oracle in these products;

  • EBS 11.5.10, 12, 12+
  • Fusion

Out of these EBS support started a few days back, which will be discussed in other post.

dgreybarrowPossible changes with SEPA

  • Euro BankAccounts :
  • Cash Management Structures
  • Banking Interfaces

dgreybarrow Further References

Posted in SEPA | 1 Comment »

Bit on “Oracle Applications E-Business Suite Documentation “

Posted on September 16th, 2008 by Sanjit Anand ||Email This Post Email This Post

Sometime back ,my client Finance IT manager asked about few queries for documentation details for Oracle, the reason was obvious as they have moved out from SAP to Oracle. Hope this information might be helpful to for Managers, line manager who are planning to go with Oracle EBS or recently started using Oracle.

questionWhat are the availability and unit cost (where applicable) of the following types of documentationoracleapps?

  • Product overview/summary
  • Reference manual /customer references
  • User guide
  • Technical manual
  • Installation guide
  • Problem solving
  • Error manual

Apart from User guide and technical reference manual, other information which is available electronically free of charge are:

  • Data sheets
  • Statement of Directions
  • Product Overview
  • User Manual – includes installation guide and problem solving
  • Technical Manual

In R12, apart from User guide and technical reference manual aka TRM, most of modules have there implementation Guide.

You can also downloaded free of charge once you have CSI number.

FYi…How SAP offers the documentation part?

Thats sound really interesting.. The website , is similar to Metalink as we have in Oracle. This site is FOC to clients and includes all the above information at no extra cost. New documentation is available with every new release/service pack in the portal.

questionWhat is the typical update frequency of the documentation?

A point release would typically provide an addendum to the guide, new guides each release.Datasheets and statement of directions are available by each point release. Each Point Release you can get RCD (Release content document) , which describe the some important changes between two releases.

dgreybarrow Additional Link for Oracle Applications Documentation

Posted in Misc | 1 Comment »

“Internal” versus “External” Drop-Ship: What’s the difference?

Posted on September 15th, 2008 by Sanjit Anand ||Email This Post Email This Post

dgreybarrow-2Difference between “Internal” and “External” Drop-Ship

In Oracle Context External Drop-Shipping means your Oracle Order Management uses purchase orders to outside suppliers that are automatically generated from sales orders for goods supplied directly from the supplier. The “external ” supplier ships the goods directly to the 3rd Party customer and confirms the shipment through the use of an Advanced Shipment Notice(ASN).

You should take a note,Oracle uses this ASN to record a receiving transaction into inventory followed by an immediate logical shipping transaction. From these transactions, conveyance of title takes place and the customer can be invoiced and the supplier’s invoice can be processed.

where as “Internal” context Drop-Shipping functions in a similar fashion. The key difference is that no inventory transactions take place on the books of the selling operating unit; transfer of ownership of the goods from shipper to seller to customer with the only physical movement of the goods being out of the shipping organization.

Read the rest of this entry »

Posted in Oracle Order Management | 5 Comments »

Drop Shipment – Functional Setup and flow

Posted on September 13th, 2008 by Sanjit Anand ||Email This Post Email This Post

A Drop Shipment occurs when a customer order is sourced from and delivered by a supplier.

Order Management sends information to the Purchasing Application to create that PO, and then when that PO is received (to indicate shipment from the supplier to your customer), the order line is automatically updated to indicate that it was fulfilled.

In this process, the company running Order Management is modeled as the company to whom the end customer places the original order.

dgreybarrow-2Drop Shipment – Setup

You need to make sure these are attribute setup Correctly:

  • Item Attributes

tickPurchased : Enabled
tickPurchasable : Enabled
tickTransactable : Enabled
tickStockable : Optional
tickReservable : Optional
tickInventory Item : Optional
tickCustomer Ordered : Enabled
tickCustomer Order Enabled : Enabled
tickInternal Ordered : Disabled
tickOE Transactable : Enabled
tickShippable : Optional

  • And ,your do set up for Order Source Type as External

dgreybarrow-2Drop Shipment – Your Setup checklist

  • Ensure you have created your Order Management Transaction Types and linked your Transaction Types to order and line workflows that support drop shipments.
  • Ensure the Oracle Workflow Background Engine is running.
  • Ensure all Drop ship locations you will use to perform drop shipments have the Ship To Site and Receiving Site defined.
  • Ensure you have defined the Internal Ship To Locations for your drop shipment customers (Oracle Receivables Standard Customer window, Business Purpose Details Tab).
  • Ensure your standard items have an associated List Price defined within your PO Inventory organization (Oracle Payables Financial Options window, Supplier-Purchasing Tab).

dgreybarrow-2Drop Shipment – Process Steps

  • Create a Sales Order with line where the line source is External
  • Book and Schedule the Sales Order
  • Run Requisition Import Process
  • Now the line status will be in Awaiting Receipt
  • Login to the Receiving Organization (Purchasing) who has been setup as an Approver
  • Run Requisition Import
  • Create Purchase Order from the Requisition
  • Approve the PO
  • Receive the full quantity
  • Run Auto Invoice
  • Verify Invoice in Sales Order

Check the details here .

dgreybarrow-2Things not to forget in a DropShipment

  • Release 11i/12 does not support Drop Shipment across operating units.
  • Blanket PO’s will not used with Drop Shipment , the reason the PO must be created when OM notifies PO that a Drop Ship order has been created.
  • You can’t cancelled Drop Shipments once Oracle Purchasing obtains the receipt.
  • Standard Items can be used for Drop Shipment.
  • In 11i, PTO’s and ATO’s cannot be drop shipped

dgreybarrow-2Similar Post on Drop Shipment

Posted in Oracle Order Management | 3 Comments »

Sub Ledger Accounting – Technical Deep Dive

Posted on September 12th, 2008 by Sanjit Anand ||Email This Post Email This Post

As you know, SLA is an intermediate step between subledger applications and GL. SLA creates the final accounting for subledger journal entries and transfers the accounting to GL.

This stores complete and balanced journal entry for each business event that requires accounting.

This can create more than one accounting representation for each transaction.

This also provides accounting information for reports and inquires. This provides the ability to drilldown to subledger journal entries from GL. There is also the
ability to drilldown to the underlying transactions in the related modules from the subledger journal lines

dgreybarrow SLA Table Diagram

Refer to table 1 below, will give a idea about the SLA tables.



This table contains subledger events for cost, revenue accounting. Accounting events will be created upon the baselining of a budget for GL validation.
Encumberance accounting events are created upon a successful funds check. One key column of this table is PROCESS_STATUS_CODE which have several meaning as:

  • ‘I’ stand for Invalid : This means Event in error in SLA
  • E‘ stand for Error : This means Event in error in SLA
  • ‘U’ stand for Unprocessed : This means Events generated in SLA
  • ‘R’ stand for Related Event : This means Related event in error
  • ‘P’ stand for Processed : This means Final Accounted
  • D’ stand for Draft : This means Draft Accounted


This table Stores subledger journal entries. There is a one-to many relationship between accounting events and journal entry headers.


This table table stores the subledger journal entry lines. There is a one-to-many relationship between subledger journal entry headers and subledger journal entry lines.


This table table stores the link between transactions and subledger journal entry lines. Determines whether supplicate subledger journal lines are merged and whether the accounted amounts are calculated by the SLA or passed through.


This table table stores records for events which have errored during the accounting program. If an event is successfully accounted without issue then it will not have records in this table.


This table table stores additional details for source transactions.Columns Source_id and source_id_char form the link between SLA and subledger (AR,AP, PA etc) base tables.

Releastionship between these table can be easily understood in this ER diagram.

SLA table Relationship

Moreover, you should not forgot the Key Concepts of SLA as:

  • Event Model : This gives definition of the subledger transaction types and lifecycle
  • Entity– This gives a classification of source of transaction
  • Event Class – This gives a classifies transaction types for accounting rule purposes
  • Event Type : This is for each transaction type, defines possible actions with accounting significance

Hope this Post will helps you to give more insights on SLA.

Posted in Subledger Accounting | No Comments »

Balance Forward Billing in R12

Posted on September 11th, 2008 by Sanjit Anand ||Email This Post Email This Post

Balance Forward Billing is just a new name of “Consolidation Invoice billing” in Release 12, which provides enhanced billing options with a more complete and flexible solution.

dgreybarrow-2Oracle R12 Vanilla Features of Balance Forward Billing

If you compare with R11i Consolidated Billing Invoice, there are some enhanced feature you can see.

  • A balance forward bill includes all of a customer’s transactions for the billing period and any balance carried forward from the previous billing period.
  • A balance forward bill can have a daily, weekly, or monthly billing period depending on the balance forward billing cycle assigned to the payment term.

Additional feature you can get like

  • You can also bill on specific days of the month. This way user can not only specify the day of the month for the billing date, or even multiple days like “every 15th and last day of month”. User can also elect to bill on a specific day of the week, such as every Friday.
  • You can also choose to exclude weekends, in this case if user skip weekends when determining billing dates, so billing dates only fall on workdays
  • A balance forward bill is consolidated at either the customer account or site level depending on the Bill Level value at the customer profile and account profile levels. You can change the Bill Level defaulted from the customer profile class at the account profile level. The Bill Level at the site profile level is a read-only field defaulted from the account profile level.
  • A balance forward bill can be either detail or summary. Both the detail and summary formats present invoice totals. The detail format lists all line items.
  • You can generate a balance forward bill in either Draft or Final formats similar to R11i.
  • Bill Presentment Architecture (BPA) configured formats provide a more appealing layout that can be easily modified and this can be viewed the completed bill online
  • In 11i, there are five consolidated bill programs. The new feature consolidates these programs into three.

Read the rest of this entry »

Posted in Oracle Receivable, R12 | 10 Comments »

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