509
Oracle EBusiness Suite Financials Handbook David James Simon Russell Graham Seibert Oracle Press™ McGrawHill/Osborne New York Chicago San Francisco Lisbon London Madrid Mexico City Milan New Delhi San Juan Seoul Singapore Sydney Toronto McGrawHill/Osborne 2600 Tenth Street Berkeley, California 94710 U.S.A. To arrange bulk purchase discounts for sales promotions, premiums, or fundraisers, please contact McGraw Hill/Osborne at the above address. For information on translations or book distributors outside the U.S.A., please see the International Contact Information page immediately following the index of this book. Copyright © 2002 by The McGrawHill Companies, Inc. (Publisher). All rights reserved. Except as permitted under the Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written permission of Publisher. Oracle is a registered trademark and Oracle11i is a trademark or registered trademark of Oracle Corporation. 1234567890 CUS CUS 0198765432 ISBN 0072132302 Publisher Brandon A. Nordin Vice President & Associate Publisher Scott Rogers Acquisitions Editor Jeremy Judson Project Editor Pamela Woolf Acquisitions Coordinator Athena Honore Technical Editors Oracle Corporation Copy Editors Rachel Lopez, Carl Wikander Proofreader Sossity Smith Indexer Karin Arrigoni Computer Designers George Toma Charbak, Melinda Moore Lytle, Kelly StantonScott

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  • OracleEBusinessSuiteFinancialsHandbookDavidJamesSimonRussellGrahamSeibert

    OraclePressMcGrawHill/OsborneNewYorkChicagoSanFranciscoLisbonLondonMadridMexicoCityMilanNewDelhiSanJuanSeoulSingaporeSydneyToronto

    McGrawHill/Osborne2600TenthStreetBerkeley,California94710U.S.A.

    Toarrangebulkpurchasediscountsforsalespromotions,premiums,orfundraisers,pleasecontactMcGrawHill/Osborneattheaboveaddress.ForinformationontranslationsorbookdistributorsoutsidetheU.S.A.,pleaseseetheInternationalContactInformationpageimmediatelyfollowingtheindexofthisbook.

    Copyright2002byTheMcGrawHillCompanies,Inc.(Publisher).

    Allrightsreserved.ExceptaspermittedundertheCopyrightActof1976,nopartofthispublicationmaybereproducedordistributedinanyformorbyanymeans,orstoredinadatabaseorretrievalsystem,withoutthepriorwrittenpermissionofPublisher.

    OracleisaregisteredtrademarkandOracle11iisatrademarkorregisteredtrademarkofOracleCorporation.

    1234567890CUSCUS0198765432ISBN0072132302

    PublisherBrandonA.Nordin

    VicePresident&AssociatePublisherScottRogers

    AcquisitionsEditorJeremyJudson

    ProjectEditorPamelaWoolf

    AcquisitionsCoordinatorAthenaHonore

    TechnicalEditorsOracleCorporation

    CopyEditorsRachelLopez,CarlWikander

    ProofreaderSossitySmith

    IndexerKarinArrigoni

    ComputerDesignersGeorgeTomaCharbak,MelindaMooreLytle,KellyStantonScott

  • IllustratorsMichaelMueller,LyssaWald

    SeriesDesignJaniBeckwith

    SeriesCoverDesignDamoreJohannDesign,Inc.

    ThisbookwascomposedwithCorelVENTURAPublisher.

    InformationhasbeenobtainedbyPublisherfromsourcesbelievedtobereliable.However,becauseofthepossibilityofhumanormechanicalerrorbyoursources,Publisher,orothers,Publisherdoesnotguaranteetotheaccuracy,adequacy,orcompletenessofanyinformationincludedinthisworkandisnotresponsibleforanyerrorsoromissionsortheresultsobtainedfromtheuseofsuchinformation.

    OracleCorporationdoesnotmakeanyrepresentationsorwarrantiesastotheaccuracy,adequacyorcompletenessofanyinformationcontainedinthisWork,andisnotresponsibleforanyerrorsoromissions.

    AbouttheAuthors

    DavidJamesisaninformationtechnologyconsultant.HespecializesinfinanceandtheOracleEBusinessSuiteandhasimplementedRelease11iinanumberofleadingcorporations.

    SimonRussellhasworkedforOracleforthelastfouryearsasanApplicationstechnicalconsultant.Hespecializesinsolutionarchitectureandcustomization.Hehaspreviousexperienceasasystemsmanagerandbusinessanalyst.

    GrahamSeibertisafinancialconsultantspecializingintheimplementationofOracleFinancials.HeistheauthorofWorkingwithOracleDevelopmentToolsandOracleDataProcessing:AManager'sHandbook.

    Acknowledgments

    Writingabookhasnumerousrewards,thegreatestofwhicharethepeopleyoumeetalongtheway.Ithasbeenapleasureworkingwithourpublishers,ScottRogers,JeremyJudson,JessicaWilson,AthenaHonore,andPamelaWoolfatOraclePress.

    Thiseditionhasbeenabroadercollaborationthanthefirst.WeareindebtedtoTonyCash,ofOracleCorporation,forsomuchofthecontentofChapter11OracleOrderManagement,andtoPaulDean,ofBraunConsulting,forChapter24OracleFinancialAnalyzer.TheauthorsalsowishtothankPaulDean([email protected])whowithassistancefromMarkHoferleandMarcusThompson,allfromBraunConsulting,Inc.(www.braunconsult.com),contributedthechapteronOracleFinancialAnalyzer.

    WemuchappreciatetheassistanceofOracleCorporation,fortheircommentsandadviceonvarioustopics.Specifically,JohnZerbel,LetaDavis,SriniSubramanian,KathleenHelbling,WilliamCurtis,MargaretWong,PaulBerman,RuthannEnthof,TerryWilliamson,PaulScott,KathrynWohnoutka,IngridVerbruggen,SaumyenduGhosh,SeamusMoran,HelenShanahan,anLoriBurke.

    DavidJamesSimonRussell

    GrahamSeibert

    ThanksfirsttoSimonRussellwho,byagreeingtocoauthorthesecondedition,broughttotheprojectuptodateRelease11iknowledge,Oraclecentricexperienceandadeeptechnicalunderstanding.IamparticularlykeentothankDavidBrettforhiscontributiontothefirstedition,whichthroughoversightwasnotacknowledgedatthetime.DavidproducedmanyofthescriptsthatreappearinChapter23,"TipsandTricks."

    IwasparticularlypleasedtogetfeedbackfromSeamusMoranandHelenShanahan,bothofOracle,oneuroaspects.ThisyearhasbeenbusyforeveryoneinvolvedintheeuroandIwouldliketothankthembothfortakingthetimeandtroubletoprovideadetailedreview.

    ThescopeoftheOracleSuiteissufficientlyvastthatnoonecanbeanexpertinallareas.Ihadn'tmyselfbeeninvolvedinasupportcapacityforawhileandknewthatIneededfirsthandproblemsolvingexperiencetoprovidetipsforuseina

  • booksuchasthis.ThereforeIwasmostpleasedtobesentanarrayoftipsbyPramilaMane,whoiscurrentlyworkingforOracleintheirsupportoperation.ThanksPramila.

    Iwouldespeciallyliketo mentionthosewithwhomIhaveworkedoverthepastfewyears,mostrecentlyShaunBegleyandStuartWorthingtonatTiscaliinLondon.IntegratingadozenstartupstobuildEurope'slargestInternetserviceproviderwasnevergoingtobeeasy.However,withShaun'sdrive,Stuart'spreeminenceintheDBAarena,severalotherlikemindedindividuals,andacommonplatformbuiltonOracle,itis,atleast,goingtobepossible.

    EarlierthisyearIhadthepleasuretoworkwithMIServices,aglobalconsultingfirmthatspecializesinOracleProcessManufacturing.TheycontinuetoapplyanextremelyhighstandardofOracleknowhowandoperateanononsenseapproachtotheircommercialprojects.ForthisopportunityIthankEddyOsborne,DannyMcDermont,KevinSaunders,andDaveMaughan.

    MywarmthankstothepeopleImetatThorntonsPlc,inparticularSueEdwardsandMichelleEdgeontheITteam,DanShipmanandKateBullinFinance,andPhilHickingwholedtheproject.AtUnitedAgriProductsinYorkshireourgolivedatecoincidedwiththeworstofthefootandmouthcrisisintheU.K.Myinvolvementwasshorttermandmuchoftheworkhadbeencompletedbeforeme,neverthelessIshouldliketothankPaulaNewby,StephenHardy,andStephenNgfortheirsupport.

    AtEuropcarinParisIwouldliketothankPascalVallerent,BertrandDarrieus,PacoGranero,andMikeDavey.Theyhadtheforesighttoadoptaradicalstrategicapproachtotheeuro,andninemonthslatertheirchoicehasbeenprovenasuccess.AlanWalderandFranoisDuflotlaidthegroundworkatEuropcarandcontinuethesuccessatAccord.

    IadmiretheabilityofDeirdreJoy,ValGay,PaulineLeech,ChrisRichmondandTrevorJonestograspthecomplexityofprojectsatConsignia.TheU.K.postalserviceisfortunatetohavesuchfocusedindividualsasitregeneratesitselfasacustomerfacingcommercialorganization.

    InthelasttwoyearsIhavelearnedmostfromsomeonewhoseskillandexperiencegoesbeyondthenarrowconfinesofOracleFinancials.GaryWoodshasbecomeagoodfriend.Hisdisciplinedapproachandprofessionalrigorhavesavedthedayonmanyoccasions.IwouldliketothankalsoTimLiddell,workingatAccenture,forkeepingmeabreastofcommercialdevelopmentsintheERPworldoutsideofOracleandtomybrotherDorienJames,nowatCapitalOne,forhisunfailingabilitytoprovideinformedinsightonallkindsofsubjects.

    FinallythisbookisformyfamilyJane,Julia,VictoriaandTanya,AnneandDorienandBranwen.

    DavidJamesLondon

    October,2001

    IhavefoundthatworkingforOracleyouareamongagroupofcharacterswhoareprofessionalbutfunandapproachablewithit.Theyarehappytosharetheirknowledgeandexperience.Thishelpsmakelightworkofeventhemostdemandingprojectsituations.IamthankfultomyOraclepracticemanagersovertheyears,mostparticularlyAndrewMoore,DavidCosh,andLizSinclairfortheiradviceandsupport.

    Ihavebeenluckyenoughtoworkwithandbementoredbysomeexceptionalindividuals.JonLevyhasgivenmemanyopportunitiesandtheconfidencetotakethemGaryWoodsguidedthePostOfficePropertyHoldingsProjectastutelyandsuccessfullyMalveenMangatatRailtrackshowedhowmeticulousattentiontodetailsavestimeandassuresaresultRamezYounanandSarahPenngavetheOracleFoundationteamsolidityanddependabilityJohnLongmanatJarvisdemonstratedthepowerofdisciplineandmethod.

    Whenagroupofpeopleturnsintoateam,theworktheycancompleteisstaggering.TheinteractionbetweenOracle,clientandpartnerorganizationsprovidesafertilegroundforlearningandIwouldliketothankallthosetoonumeroustomentionherewithwhomIhaveworked.InparticularImustsingleoutthoseatJarvisfortheirpatience,asmyforayintowritingcoincidedwithaverytightprojectschedule.Mydevelopmentteamtherewasamodelprofessionalunitwhoperformedallthatwasaskedofthem.

    Finally,thankstoDavidJamesforallowingmetojoininthefun(andmakingitso),GrahamSeibertforhavingdoneallthehardworkwellinthefirstedition,andtomyfamilyandfriendsforrememberingthatIamstillaliveeveniftheydon'tseeme:Ihavereallyappreciatedyoubeingthereforme.

    SimonRussellLondon

    October,2001

  • ThegreatestrewardtocomeoutofthefirsteditionofthisbookwasgettingtoknowDavidJames.Hissteadyhandandgoodhumourkeptthissecondeditiononcourse,inadditiontowhichhehadthewisdomtoaskSimontojoinus.

    ThanksEdgarKline,withoutwhoseexcellentDBAsupportitwouldhavebeenimpossibletoimplementthesystemsdescribedhere,andtoDanHinkleandSteveO'HearnofMontreaConsulting.Itishardtosumupbuteasytoappreciateallthatgoesintogoodmanagement.ThanksalsotoAndreaRosarioforherencouragementandsupport.

    GrahamSeibertBethesda,Maryland

    October,2001

    TableofContentsOracleEBusinessSuiteFinancialsHandbook .................................................................................................... 1

    Introduction .............................................................................................................................................................21

    Overview ...................................................................................................................................................................21

    AboutThisBook .......................................................................................................................................................22

    NewinThisEdition...............................................................................................................................................22

    WhoShouldReadThisBook? ............................................................................................................................22

    OrganizationofThisBook ...................................................................................................................................22

    TopicsthatAreNotCovered ...............................................................................................................................23

    AboutOracleCorporation........................................................................................................................................23

    TheOracleRDBMS..............................................................................................................................................24

    TheOracleApplicationServer ............................................................................................................................25

    OracleProgrammingTools..................................................................................................................................25

    DataWarehouseDirections.................................................................................................................................26

    TheFutureDirectionofOracleApplications ......................................................................................................26

    ReasonsforChoosingOracleApplications........................................................................................................27

    UseThisBookforaSuccessfulFinancialsImplementation.................................................................................28

    EstablishaPlan ....................................................................................................................................................28

    UnderstandtheCompany'sBusinessPractices................................................................................................28

    UnderstandtheApplicationsSuite......................................................................................................................29

    GettheNeededLevelofCommitmentfromUsers............................................................................................29

    StafftheJobRight,andGiveItTime..................................................................................................................29

    BePragmatic ........................................................................................................................................................30

    HowtoGetMaximumValuefromtheApplications ...........................................................................................30

    Conclusion ................................................................................................................................................................30

    PartI:GettingStarted............................................................................................................................................30

    ChapterList...............................................................................................................................................................31

    Chapter1:AnOverviewoftheEBusinessSuite......................................................................................................31

  • Overview ...................................................................................................................................................................31

    TheStructureandScopeoftheEBusinessSuite ................................................................................................31

    AccountingMethods.............................................................................................................................................34

    OperationalControl ..............................................................................................................................................35

    ThePackageFamilies..........................................................................................................................................35

    TheBenefitsofImplementingOracleEBusinessSuite .......................................................................................36

    WhatAreYourObjectives?SettingParametersandExpectations .....................................................................36

    ReengineerNoworLater?................................................................................................................................36

    Conclusion ................................................................................................................................................................37

    Chapter2:ImplementingtheEBusinessSuiteEssentialConcepts ....................................................................37

    Overview ...................................................................................................................................................................37

    CapturingtheFinancialInformationRelevanttoYourBusiness..........................................................................37

    Flexfields ...............................................................................................................................................................38

    Workflow................................................................................................................................................................43

    AccountingforTransactions ................................................................................................................................44

    MeetingtheVariedNeedsofComplexOrganizations ..........................................................................................46

    TheOrganizationalModelWithinOracleEBusinessSuite..............................................................................46

    FinancialsintheGlobalBusinessesEnvironment ................................................................................................49

    CreatingaModelofYourBusiness ....................................................................................................................49

    GlobalFinancialApplications ..............................................................................................................................50

    Conclusion ................................................................................................................................................................52

    PartII:TheFinancialApplications ......................................................................................................................52

    ChapterList...............................................................................................................................................................52

    Chapter3:OracleGeneralLedger .............................................................................................................................52

    Overview ...................................................................................................................................................................52

    TheHeartofYourAccountingSystem ...................................................................................................................53

    OverviewofGeneralLedger................................................................................................................................54

    IntegrationwithOtherFinancialsModules .........................................................................................................59

    GeneralLedgerSetup..........................................................................................................................................68

    AccountingFlexfieldDesignBestPractice..........................................................................................................73

    WhattoConsider..................................................................................................................................................73

    GoodDesignPrinciples .......................................................................................................................................79

    WhattoAvoid........................................................................................................................................................81

    GeneralLedgerReporting .......................................................................................................................................82

    FinancialStatementGenerator ...........................................................................................................................82

  • OracleFinancialAnalyzer....................................................................................................................................87

    TheApplicationsDesktopIntegrator(ADI).........................................................................................................88

    OracleGeneralLedgerDataModel ....................................................................................................................88

    ConversionfromLegacySystems ......................................................................................................................90

    Conclusion ................................................................................................................................................................92

    Chapter4:BudgetingandAllocations ........................................................................................................................93

    Overview ...................................................................................................................................................................93

    DifferencesBetweenFinancialandManagementAccounting.............................................................................93

    TheLimitationsofFinancialAccounting .............................................................................................................93

    DifferentTypesofReports...................................................................................................................................93

    BridgingtheGap...................................................................................................................................................94

    Budgeting ..................................................................................................................................................................94

    TheBudgetingProcess........................................................................................................................................94

    BudgetaryControlforNonprofitOrganizations..................................................................................................95

    TypesofBudgets..................................................................................................................................................95

    Allocations.................................................................................................................................................................96

    AllocationFormulas..............................................................................................................................................97

    AutoAllocationsWorkbench.................................................................................................................................98

    Conclusion ................................................................................................................................................................98

    Chapter5:OraclePayables ........................................................................................................................................98

    Overview ...................................................................................................................................................................98

    PurposesofaPayablesSystem .............................................................................................................................99

    InnovativeUsesofOraclePayables...................................................................................................................99

    AnOverviewofPayablesinYourBusiness.........................................................................................................101

    TimingYourLiability ...........................................................................................................................................101

    ThePayablesWorkflow .....................................................................................................................................102

    ThePayablesCycle ...........................................................................................................................................103

    SupplierData ......................................................................................................................................................109

    AccountingMethods...........................................................................................................................................111

    AccountingEntriesforPayablesTransactions ................................................................................................111

    IntegrationwithOtherFinancialsModules .......................................................................................................113

    TheOraclePayablesDataModel .....................................................................................................................115

    Conclusion ..............................................................................................................................................................118

    Chapter6:OracleReceivables .................................................................................................................................119

    OracleReceivablesandYourARBusinessProcesses......................................................................................119

  • iReceivables........................................................................................................................................................121

    CreatingandManagingtheCustomerDatabase ................................................................................................121

    CustomerProfiles ...............................................................................................................................................122

    TheCustomerAccount ......................................................................................................................................123

    BusinessPurposes.............................................................................................................................................124

    Transactions ...........................................................................................................................................................124

    Invoices ...............................................................................................................................................................124

    TaxConsiderations ............................................................................................................................................125

    AutomaticAccountGeneration..........................................................................................................................126

    PrintingTransactions..........................................................................................................................................127

    DebitMemos.......................................................................................................................................................128

    CreditMemos......................................................................................................................................................128

    Receipts...............................................................................................................................................................129

    Adjustments ........................................................................................................................................................133

    Commitments......................................................................................................................................................134

    RefundstoCustomers .......................................................................................................................................135

    TransfertoDoubtfulDebt ..................................................................................................................................136

    CustomerFollowUp ..............................................................................................................................................137

    CustomerCalls ...................................................................................................................................................137

    DunningLetters ..................................................................................................................................................137

    Statements ..........................................................................................................................................................141

    IntegrationwithOtherModules .............................................................................................................................142

    OrderManagement ............................................................................................................................................142

    Projects................................................................................................................................................................143

    Inventory..............................................................................................................................................................143

    GeneralLedger...................................................................................................................................................143

    ReceivablesOpenInterfaces ............................................................................................................................143

    TheReceivablesDataModel ............................................................................................................................144

    AdvancedFeatures ................................................................................................................................................147

    TheCustomerAccountandBalanceDue ........................................................................................................148

    Reconciliation......................................................................................................................................................149

    ThePurgeFeature .............................................................................................................................................149

    ReceivablesConversionIssues ........................................................................................................................150

    Conclusion ..............................................................................................................................................................152

    Chapter7:OracleCashManagement......................................................................................................................152

  • Overview .................................................................................................................................................................152

    TheNeedforCashManagement..........................................................................................................................153

    BankReconciliation............................................................................................................................................154

    BankStatementInterfaceCaseStudy .............................................................................................................156

    CashForecasting ...............................................................................................................................................161

    CashManagementInterfaces ...............................................................................................................................163

    TheReconciliationOpenInterface....................................................................................................................163

    TheForecastingOpenInterface .......................................................................................................................163

    TheCashManagementDataModel.....................................................................................................................164

    Conclusion ..............................................................................................................................................................164

    Chapter8:OracleAssets ..........................................................................................................................................165

    Overview .................................................................................................................................................................165

    RegisteringandTrackingAssets ..........................................................................................................................165

    TheAssetAdditionsCycle.................................................................................................................................165

    TaggingwithAssetIdentifiers ...........................................................................................................................166

    TheAssetKeyFlexfield .....................................................................................................................................167

    TheLocationFlexfield ........................................................................................................................................167

    TheCategoryFlexfield .......................................................................................................................................168

    Depreciation............................................................................................................................................................169

    LedgerAccounting..............................................................................................................................................169

    BusinessTaxesandtheNeedforMultipleAssetBooks ................................................................................170

    DepreciationMethods ........................................................................................................................................171

    LeasedAssets ........................................................................................................................................................175

    CapitalBudgeting ...................................................................................................................................................175

    ConvertingtoOracleAssets..................................................................................................................................175

    ConvertingTaxBooks........................................................................................................................................177

    TradeoffsBetweenRecordkeepingandReporting ............................................................................................177

    Conclusion ..............................................................................................................................................................178

    Chapter9:OraclePurchasing...................................................................................................................................178

    PurchasingOverview .............................................................................................................................................178

    Requisitions ............................................................................................................................................................179

    Suppliers .................................................................................................................................................................180

    SupplierRelationships .......................................................................................................................................180

    CommunicatingwithSuppliers ..........................................................................................................................185

    TheImplicationsofMultiOrg ................................................................................................................................187

  • MultipleOrganizationsinInventory...................................................................................................................187

    Receiving ................................................................................................................................................................187

    Exceptions...........................................................................................................................................................188

    ReceiptRouting ..................................................................................................................................................188

    DropShipmentReceipts ....................................................................................................................................188

    ProductivityversusSecurity ..............................................................................................................................189

    PaymentonReceipt ...........................................................................................................................................189

    IntegrationwithOtherModules .............................................................................................................................189

    PayablesIntegration...........................................................................................................................................190

    ProjectsIntegration ............................................................................................................................................190

    OrderManagementIntegration .........................................................................................................................191

    InventoryIntegration...........................................................................................................................................191

    AccountingIssues ..................................................................................................................................................191

    AverageandStandardCosting .........................................................................................................................191

    AccrualAccounts................................................................................................................................................192

    AutomaticAccountGeneration..........................................................................................................................192

    Implementation .......................................................................................................................................................193

    ConvertingtheVendorMaster ..........................................................................................................................193

    ConvertingTransactions ....................................................................................................................................193

    ConvertingPurchasingHistory..........................................................................................................................194

    Testing.................................................................................................................................................................194

    Customization .....................................................................................................................................................195

    Conclusion ..............................................................................................................................................................195

    Chapter10:OracleInventory ....................................................................................................................................195

    OverviewofInventory ............................................................................................................................................196

    IntegrationwithOtherModules .............................................................................................................................197

    ItemSetup...............................................................................................................................................................197

    ItemNumbers .....................................................................................................................................................197

    Attributes .............................................................................................................................................................198

    Revisions.............................................................................................................................................................203

    BillsofMaterial ...................................................................................................................................................203

    GroupingItems .......................................................................................................................................................204

    CategoriesandCategorySets ..........................................................................................................................204

    Catalogs ..............................................................................................................................................................206

    IssuesofVolume ................................................................................................................................................206

  • PhysicalStorageandManagement......................................................................................................................207

    InventoryOrganizations .....................................................................................................................................207

    Subinventories ....................................................................................................................................................208

    Locators...............................................................................................................................................................208

    LotProcessing ....................................................................................................................................................209

    SerialNumberProcessing .................................................................................................................................209

    Balances..............................................................................................................................................................210

    Counting ..............................................................................................................................................................210

    ForecastingandDemand ..................................................................................................................................214

    IndustryEffortstoImproveStockMovement .......................................................................................................215

    Kanban ................................................................................................................................................................216

    WarehouseMovements .....................................................................................................................................217

    ConversionIssues..................................................................................................................................................217

    ItemMasterConversion.....................................................................................................................................217

    TransactionConversion .....................................................................................................................................218

    LocationConversion...........................................................................................................................................218

    AccountingEntriesforInventoryTransactions ....................................................................................................220

    AdditionalAccountingTransactions..................................................................................................................221

    Variances ............................................................................................................................................................222

    AverageversusStandardCosting ....................................................................................................................223

    NonmaterialExpenseCollection .......................................................................................................................223

    SettingStandardCosts ......................................................................................................................................224

    TheCostingTables ............................................................................................................................................226

    DeterminingSalesPrices...................................................................................................................................228

    ProjectManufacturing ........................................................................................................................................228

    INTRASTATReporting.......................................................................................................................................228

    ActivityBasedCosting .......................................................................................................................................229

    PlanningandDebuggingCostTransactions....................................................................................................229

    OperationofOracleInventory ...............................................................................................................................230

    Responsibilities...................................................................................................................................................230

    InterfaceManagerProcessing ..........................................................................................................................230

    ArchivingandDeletingData ..............................................................................................................................231

    AdvantagesofanOpenDesign ............................................................................................................................231

    Conclusion ..............................................................................................................................................................232

    Chapter11:OracleOrderManagement...................................................................................................................232

  • Overview .................................................................................................................................................................232

    OMSetups ..............................................................................................................................................................234

    DefaultingRules .................................................................................................................................................234

    FunctionalDifferences .......................................................................................................................................234

    AttributesandEntitiesinOrderManagement ..................................................................................................235

    DependenciesAmongAttributes.......................................................................................................................235

    SourcesofValues ..............................................................................................................................................235

    ProcessingConstraints ......................................................................................................................................236

    FunctionalDifferences .......................................................................................................................................236

    Migration/UpgradefromSecurityRules............................................................................................................237

    WorkflowIntegration...........................................................................................................................................237

    Migration/UpgradefromOrderTypes ...............................................................................................................237

    The11iCustomerModel .......................................................................................................................................237

    ASingleSourceofTruth....................................................................................................................................238

    ThePartyConcept..............................................................................................................................................238

    CustomerAgreements .......................................................................................................................................240

    SalesCredits.......................................................................................................................................................241

    UsingCreditCardsinOracleOrderManagement[1]............................................................................................241

    RiskManagement...............................................................................................................................................242

    OracleConfiguratorDeveloper .............................................................................................................................242

    ItemsinOrderManagement..............................................................................................................................244

    EnhancedScheduling[2].........................................................................................................................................246

    AvailabletoPromise ..........................................................................................................................................246

    ShipmentScheduling .........................................................................................................................................246

    SpecificOrderTypes..............................................................................................................................................248

    InternalSalesOrders .........................................................................................................................................248

    DropShipment....................................................................................................................................................248

    ReturnMaterialAuthorizations(RMAs) ............................................................................................................249

    OracleReleaseManagement................................................................................................................................250

    DemandManagementFlow ..............................................................................................................................250

    OracleShipping ......................................................................................................................................................251

    PickRelease .......................................................................................................................................................253

    MoveOrders .......................................................................................................................................................253

    ShippingTolerances...........................................................................................................................................254

    FreightCosts.......................................................................................................................................................254

  • ShippingExceptions...........................................................................................................................................255

    EuropeanReporting ...........................................................................................................................................255

    UPSIntegration ..................................................................................................................................................255

    Containers ...........................................................................................................................................................255

    Pricing......................................................................................................................................................................256

    OracleAdvancedPricing ...................................................................................................................................257

    PriceListElements.............................................................................................................................................257

    MaintainingPriceLists .......................................................................................................................................258

    GSAPricing.........................................................................................................................................................258

    MulticurrencyPricing ..........................................................................................................................................258

    OMKeyFeatures ...................................................................................................................................................258

    CrossReferences...............................................................................................................................................258

    CustomerItems ..................................................................................................................................................259

    DecimalQuantityOrdering ................................................................................................................................259

    FolderenabledForms........................................................................................................................................259

    AutomaticAttachments ......................................................................................................................................259

    Notifications.........................................................................................................................................................259

    ProcessMessages .............................................................................................................................................259

    MassChange/OtherFunctionality.....................................................................................................................260

    IntegrationwithOrderCapture ..........................................................................................................................260

    OrderPurge ........................................................................................................................................................260

    Accounting ..............................................................................................................................................................260

    IntegrationwithOtherModules .............................................................................................................................261

    IntegrationwithReceivables..............................................................................................................................261

    IntegrationwithInventory...................................................................................................................................261

    IntegrationwithPurchasing ...............................................................................................................................262

    ConversionIssues..................................................................................................................................................262

    OrderImport........................................................................................................................................................262

    Responsibilities.......................................................................................................................................................262

    Conclusion ..............................................................................................................................................................263

    Chapter12:ForeignCurrencyOperations...............................................................................................................263

    Overview .................................................................................................................................................................263

    MulticurrencyAccounting.......................................................................................................................................264

    ForeignCurrencyTransactions .........................................................................................................................264

    Revaluation .........................................................................................................................................................265

  • Conversion ..........................................................................................................................................................265

    BalanceTranslation............................................................................................................................................265

    TheEuro..................................................................................................................................................................266

    ReportinginMultipleCurrencies...........................................................................................................................267

    MultipleReportingCurrencies(MRC) ...............................................................................................................267

    123EFC............................................................................................................................................................267

    MRCandGLTranslationTheDifference ......................................................................................................268

    MigrationtotheEuro..............................................................................................................................................268

    AccountInquiryinEitherPrimaryorReportingCurrency ...............................................................................269

    OneStepSubledgerProcessing.......................................................................................................................269

    Conclusion ..............................................................................................................................................................269

    Chapter13:OracleSelfServiceWebApplications.................................................................................................269

    Overview .................................................................................................................................................................269

    Oracle'sVisionandDirection ................................................................................................................................270

    OracleSelfServiceWebApplicationsArchitecture ............................................................................................270

    InternetProcurement..........................................................................................................................................271

    OracleSelfServiceTimeandSelfServiceExpenses ....................................................................................274

    OracleiReceivables ...........................................................................................................................................275

    ImplementationConsiderations.........................................................................................................................275

    OtherSelfServiceWebApplications................................................................................................................276

    Conclusion ..............................................................................................................................................................277

    Chapter14:OracleProjects ......................................................................................................................................277

    Overview .................................................................................................................................................................277

    Setup .......................................................................................................................................................................278

    OrganizationSetup.............................................................................................................................................278

    Costing ....................................................................................................................................................................283

    Billing .......................................................................................................................................................................286

    IntercompanyProjects ...........................................................................................................................................288

    InterprojectBilling ...............................................................................................................................................288

    AutoAccounting ......................................................................................................................................................289

    ProjectProcessingCycle.......................................................................................................................................291

    Reporting.................................................................................................................................................................291

    IntegrationwithOtherModules .............................................................................................................................293

    ClientExtensions....................................................................................................................................................298

    DataConversion.....................................................................................................................................................299

  • Conclusion ..............................................................................................................................................................299

    Chapter15:OracleWorkflowandtheImplementationWizard ..............................................................................300

    Overview .................................................................................................................................................................300

    WorkflowArchitecture ............................................................................................................................................300

    WorkflowUserClientTier ..................................................................................................................................300

    ApplicationServerTier.......................................................................................................................................301

    OracleServerTier ..............................................................................................................................................301

    EmbeddedorStandalone ..................................................................................................................................303

    UsingWorkflow...................................................................................................................................................303

    PrebuiltWorkflows..............................................................................................................................................308

    WizardOverview ....................................................................................................................................................308

    WhyYouNeedaWizard....................................................................................................................................308

    UsingtheImplementationWizard .....................................................................................................................309

    Conclusion ..............................................................................................................................................................309

    Chapter16:NewApplicationsinRelease11i .........................................................................................................310

    Overview .................................................................................................................................................................310

    OraclePropertyManager ......................................................................................................................................310

    AnOverviewofPropertyManagement.............................................................................................................310

    IntegrationwithOtherApplications ...................................................................................................................315

    OracleTreasury......................................................................................................................................................317

    AnOverviewofTreasuryOperations................................................................................................................317

    IntegrationwithOtherApplications ...................................................................................................................319

    MarketDataFeed...............................................................................................................................................320

    BusinessIntelligenceSystem................................................................................................................................320

    Architecture .........................................................................................................................................................320

    Conclusion ..............................................................................................................................................................323

    PartIII:ManagingandCustomizinganApplicationsEnvironment............................................................323

    ChapterList.............................................................................................................................................................324

    Chapter17:TheOracleFinancialsEnvironment ....................................................................................................324

    Overview .................................................................................................................................................................324

    OnlineOperations ..................................................................................................................................................325

    QueryMode ........................................................................................................................................................325

    DataentryMode .................................................................................................................................................326

    Messages ............................................................................................................................................................326

    NavigationandSpecialFunctionsinForms.....................................................................................................327

  • DisplayFormats..................................................................................................................................................327

    MultipleOpenWindows .....................................................................................................................................328

    BatchOperations....................................................................................................................................................329

    TheConcurrentManager...................................................................................................................................329

    ConcurrentProgramParameters ......................................................................................................................331

    RequestSets ......................................................................................................................................................332

    PrintingandOtherMeansofOutput .................................................................................................................332

    Flexfields .................................................................................................................................................................333

    KeyFlexfields......................................................................................................................................................334

    DescriptiveFlexfields .........................................................................................................................................335

    Contexts ..............................................................................................................................................................335

    FlexfieldValidation .............................................................................................................................................336

    FlexfieldSecurity ................................................................................................................................................337

    FlexfieldDefinition ..............................................................................................................................................337

    NationalLanguageSupport(NLS)........................................................................................................................339

    AOLlevelLanguageDetermination..................................................................................................................339

    NationalLanguageSupportforReports ...........................................................................................................339

    NationalLanguageSupportforFlexfields ........................................................................................................340

    NationalLanguageinData ................................................................................................................................340

    Alerts .......................................................................................................................................................................340

    ApplicationManagement .......................................................................................................................................341

    UsersandResponsibilities ................................................................................................................................341

    Security................................................................................................................................................................342

    Instances .............................................................................................................................................................343

    FileStorage.........................................................................................................................................................345

    QuickcodesandLookupTypes .........................................................................................................................346

    ManagingtheApplicationsEnvironment..............................................................................................................347

    MultipleEnvironmentsforDevelopment...........................................................................................................347

    MultipleUseoftheApplicationsinProduction.................................................................................................348

    MultiOrg..............................................................................................................................................................348

    ProfileOptions ........................................................................................................................................................349

    Oracle'sApplicationImplementationMethodology(AIM) ...................................................................................350

    HardwareConsiderations ......................................................................................................................................350

    Conclusion ..............................................................................................................................................................351

    Chapter18:OracleApplicationsTechnicalArchitecture ........................................................................................351

  • Overview .................................................................................................................................................................351

    Release11iTheEBusinessSuite.....................................................................................................................352

    ArchitectureComponents ......................................................................................................................................352

    TheClientTier ....................................................................................................................................................353

    TheApplicationsTier..........................................................................................................................................353

    TheDatabaseTier..............................................................................................................................................354

    CommunicationsforEachTypeofSession .....................................................................................................355

    MappingtheArchitecturetoHardware .............................................................................................................355

    DatabaseServerSizing:YourProcessor,Memory,andDiskSpace ............................................................356

    WindowsandUNIXOperatingSystems...........................................................................................................358

    BaseSoftwareandCommunicationTechnologies..............................................................................................361

    TheTransitiontoGlobalInstallations ...................................................................................................................361

    TimeZones .........................................................................................................................................................362

    SupportAdvancesandTools ................................................................................................................................362

    PlatinumVersions...............................................................................................................................................362

    OracleEnterpriseManager................................................................................................................................362

    BackupsandCloningEnvironments.................................................................................................................363

    Conclusion ..............................................................................................................................................................363

    Chapter19:Security ..................................................................................................................................................363

    Overview .................................................................................................................................................................363

    ArchitectureoftheFinancials ................................................................................................................................364

    TheUniverseofThreats ........................................................................................................................................367

    UnauthorizedActivitybyAuthorizedUsersoftheApps..................................................................................367

    UnauthorizedUsersoftheOracleApplications ...............................................................................................367

    PhysicalSecurityThreats ..................................................................................................................................367

    DamageCausedbyFraudulentUsers .............................................................................................................368

    ThreatsOutsideoftheOracleApplications......................................................................................................368

    RDBMSLevelCompromise...............................................................................................................................369

    DesktopLevelSecurityConsiderations............................................................................................................370

    DevelopmentandProductionEnvironments....................................................................................................370

    NetworkLevelCompromises.............................................................................................................................370

    Countermeasures...................................................................................................................................................371

    SecurityPolicyDefinition ...................................................................................................................................371

    AccessControlPolicies .....................................................................................................................................372

    ControlofInternetAccess .................................................................................................................................373

  • AnOverviewofPublicKeyCryptography ........................................................................................................373

    ImplementationofPublicKeyCryptography ....................................................................................................375

    VirtualPrivateNetworks(VPNs) .......................................................................................................................377

    StrongAuthentication.........................................................................................................................................378

    VirusThreats.......................................................................................................................................................378

    HackerCountermeasures..................................................................................................................................378

    Conclusion ..............................................................................................................................................................379

    Chapter20:CustomizationandModification ...........................................................................................................380

    Overview .................................................................................................................................................................380

    AnticipatingandPlanningCustomizationsandModifications ............................................................................381

    RisksandCostsinCustomization ....................................................................................................................381

    TheFrameworkforModifications......................................................................................................................383

    CustomOutput....................................................................................................................................................390

    OverviewoftheOpenInterfaces.......................................................................................................................396

    PopulatingtheOpenInterfaces.........................................................................................................................397

    ScriptsforInsertingRowsintoStandardTables..............................................................................................399

    UpdatingStandardTables .................................................................................................................................402

    UsingDescriptiveFlexfields ..............................................................................................................................403

    CustomizingWorkflows......................................................................................................................................406

    CustomForms ....................................................................................................................................................406

    Messages ............................................................................................................................................................407

    PerformanceTuning...........................................................................................................................................408

    TheAnalysisProcess ............................................................................................................................................410

    UserReferenceManuals ...................................................................................................................................410

    TechnicalReferenceManuals(TRMs) .............................................................................................................410

    ReadingCode .....................................................................................................................................................410

    LaboratoryMethod .............................................................................................................................................411

    DetailedTableAnalysis .....................................................................................................................................411

    RegressionTesting ................................................................................................................................................413

    UsingaRegressionTesterforMassUpdates .................................................................................................414

    DocumentControl ..................................................................................................................................................414

    LogMaintenance ................................................................................................................................................414

    ConfigurationManagement ...............................................................................................................................418

    Conclusion ..............................................................................................................................................................419

    Chapter21:ProjectOrganizationandManagement .........................................................................................419

  • Overview ................................................................................................................................................................419

    OracleSoftwareasaStepTowardCorporateMaturity ................................................................................420

    SpreadsheetsversusProjectManagementSoftware .........................................................................................421

    DevelopingtheProjectPlan...............................................................................................................................422

    TheProjectBudget ..............................................................................................................................................424

    TheProjectManagementHierarchy .................................................................................................................425

    TeamFormation .....................................................................................................................................................426

    FunctionalTeamLeads .....................................................................................................................................427

    DatabaseAdministrator .....................................................................................................................................428

    Programmers ....................................................................


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