You are previewing Oracle E-Business Suite Financials Handbook, Third Edition.
O'Reilly logo
Oracle E-Business Suite Financials Handbook, Third Edition

Book Description

This fully updated Oracle Press guide covers the major considerations in managing the new Oracle Financials 12 installation, customizing the product, converting from a legacy system to Oracle Financials, and operating in a live environment.

Table of Contents

  1. Cover 
  2. Title Page
  3. Copyright Page
  4. Dedication
  5. About the Authors
  6. Contents at a Glance
  7. Contents 
  8. Acknowledgments
  9. Introduction
  10. Part I: Getting Started
    1. 1. An Overview of the E-Business Suite
      1. The Structure and Scope of the E-Business Suite
        1. Accounting Methods
        2. Operational Control
        3. The Package Families
      2. The Benefits of Implementing Oracle E-Business Suite
      3. What Are Your Objectives? Setting Parameters and Expectations
        1. Reengineer—Now or Later?
      4. Conclusion
    2. 2. Implementing the E-Business Suite—Essential Concepts
      1. Capturing the Financial Information Relevant to Your Business
        1. Flexfields
        2. Workflow
        3. Accounting for Transactions
      2. Meeting the Varied Needs of Complex Organizations
        1. The Organizational Model Within Oracle E-Business Suite
      3. Financials in the Global Businesses Environment
        1. Creating a Model of Your Business
        2. Global Financial Applications
      4. Conclusion
  11. Part II: The Financial Applications
    1. 3. Oracle General Ledger
      1. The Heart of Your Accounting System
        1. Overview of General Ledger
        2. Integration with Other Financials Modules
        3. General Ledger Setup
      2. Accounting Flexfield Design—Best Practice
        1. What to Consider
        2. Good Design Principles
        3. What to Avoid
      3. General Ledger Reporting
        1. Financial Statement Generator
        2. Web Applications Desktop Integrator (Web ADI)
        3. Oracle General Ledger Data Model
        4. Conversion from Legacy Systems
      4. Conclusion
    2. 4. Oracle Subledger Accounting
      1. The Subledger Accounting Concept
      2. Components of Subledger Accounting
        1. Accounting Setup Manager Considerations for Subledger Accounting
        2. Accounting Method Builder
        3. Some Important Features of Oracle Subledger Accounting
        4. Create Accounting and Transfer Journal Entries to GL
        5. Conversion of Historical Data for Reporting Currencies and Secondary Ledgers
        6. Subledger Accounting Inquiry and Reporting
        7. Subledger Accounting’s Impact on End Users
        8. Technical Overview of SLA
      3. Conclusion
    3. 5. Oracle Payables
      1. Purposes of a Payables System
        1. Innovative Uses of Oracle Payables
      2. An Overview of Payables in Your Business
        1. Timing Your Liability
        2. The Payables Workflow
        3. The Payables Cycle
        4. Supplier Data
        5. Accounting Methods
        6. Accounting Entries for Payables Transactions
        7. Integration with Other Financials Modules
        8. The Oracle Payables Data Model
      3. Conclusion
    4. 6. Oracle Receivables
      1. Oracle Receivables and Your AR Business Processes
        1. iReceivables
      2. Creating and Managing the Customer Database
        1. Customer Profiles
        2. The Customer Account
        3. Business Purposes
      3. Transactions
        1. Invoices
        2. Tax Considerations
        3. Automatic Account Generation
        4. Printing Transactions
        5. Debit Memos
        6. Credit Memos
        7. Receipts
        8. Adjustments
        9. Commitments
        10. Refunds to Customers
        11. Transfer to Doubtful Debt
      4. Customer Follow-Up
        1. Customer Calls
        2. Dunning Letters
        3. Statements
      5. Integration with Other Modules
        1. Order Management
        2. Projects
        3. Inventory
        4. General Ledger
        5. Receivables Open Interfaces
        6. The Receivables Data Model
      6. Advanced Features
        1. The Customer Account and Balance Due
        2. Reconciliation
        3. The Purge Feature
        4. Receivables Conversion Issues
      7. Conclusion
    5. 7. Oracle Treasury
      1. An Overview of Treasury Operations
        1. Currency-Holiday Rules
        2. Portfolios and Positions
        3. Different Types of Deals
        4. Using Treasury for Cash Forecasting
      2. Integration with Other Applications
        1. Treasury Banks and Accounts Payable Banks
        2. Cash Forecasting in Treasury and Cash Management
      3. Oracle Treasury Open-Interface Tables
        1. Market Data Feed
        2. Deals Interface Table
        3. Transaction Interface Table
      4. Conclusion
    6. 8. Oracle Cash Management
      1. The Need for Cash Management
        1. Bank Reconciliation
        2. Bank Statement Interface Case Study
        3. Cash Forecasting
        4. Cash Pooling
      2. Cash Management Interfaces
        1. The Reconciliation Open Interface
        2. The Forecasting Open Interface
      3. The Cash Management Data Model
      4. Conclusion
    7. 9. Oracle Assets
      1. Registering and Tracking Assets
        1. The Asset Additions Cycle
        2. Tagging with Asset Identifiers
        3. The Asset Key Flexfield
        4. The Location Flexfield
        5. The Category Flexfield
      2. Depreciation
        1. Ledger Accounting
        2. Business Taxes and the Need for Multiple Asset Books
        3. Depreciation Methods
      3. Leased Assets
      4. Capital Budgeting
      5. Converting to Oracle Assets
        1. Converting Tax Books
      6. Trade-Offs Between Record Keeping and Reporting
      7. Conclusion
    8. 10. Oracle Purchasing
      1. Purchasing Overview
      2. Requisitions
      3. Suppliers
      4. Supplier Relationships
        1. Communicating with Suppliers
      5. The Implications of Multi-Org
        1. Multiple Organizations in Inventory
      6. Receiving
        1. Exceptions
        2. Receipt Routing
        3. Drop-Shipment Receipts
        4. Productivity Versus Security
        5. Payment on Receipt
      7. Integration with Other Modules
        1. Payables Integration
        2. Projects Integration
        3. Order Management Integration
        4. Inventory Integration
      8. Accounting Issues
        1. Average and Standard Costing
        2. Accrual Accounts
        3. Automatic Account Generation
      9. Implementation
        1. Converting the Vendor Master
        2. Converting Transactions
        3. Converting Purchasing History
        4. Testing
        5. Customization
      10. Conclusion
    9. 11. Oracle Inventory
      1. Overview of Inventory
      2. Integration with Other Modules
      3. Item Setup
        1. Item Numbers
        2. Attributes
        3. Revisions
        4. Bill of Materials
      4. Grouping Items
        1. Categories and Category Sets
        2. Catalogs
        3. Issues of Volume
      5. Physical Storage and Management
        1. Inventory Organizations
        2. Subinventories
        3. Locators
        4. Lot Processing
        5. Serial-Number Processing
        6. Balances
        7. Counting
        8. Forecasting and Demand
      6. Industry Efforts to Improve Stock Movement
        1. Kanban
        2. Warehouse Movements
      7. Conversion Issues
        1. Item Master Conversion
        2. Transaction Conversion
        3. Location Conversion
      8. Accounting Entries for Inventory Transactions
        1. Additional Accounting Transactions
        2. Variances
        3. Average Versus Standard Costing
        4. Nonmaterial-Expense Collection
        5. Setting Standard Costs
        6. The Costing Tables
        7. Determining Sales Prices
        8. Project Manufacturing
        9. INTRASTAT Reporting
        10. Activity-Based Costing
        11. Planning and Debugging Cost Transactions
      9. Operation of Oracle Inventory
        1. Responsibilities
        2. Interface-Manager Processing
        3. Archiving and Deleting Data
      10. Advantages of an Open Design
      11. Conclusion
    10. 12. Oracle Order Management
      1. OM Setups
        1. Defaulting Rules
        2. Functional Advantages of Defaulting Rules
        3. Attributes and Entities in Order Management
        4. Dependencies Among Attributes
        5. Sources of Values
        6. Processing Constraints
        7. Functional Differences
        8. Workflow Integration
        9. Cross-References
        10. Customer Items
        11. Folder-Enabled Forms
        12. Automatic Attachments
        13. Process Messages
        14. Mass Change/Other Functionality
        15. Integration with Order Capture
        16. Order Purge
        17. Migration or Upgrade from Order Types
      2. The Customer Model
        1. A Single Source of Truth
        2. The Party Concept
        3. Customer Agreements
        4. Sales Credits
      3. Using Credit Cards in Oracle Order Management
      4. Oracle Configurator Developer
        1. Items in Order Management
      5. Scheduling
        1. Available-to-Promise
        2. Shipment Scheduling
      6. Specific Order Types
        1. Internal Sales Orders
        2. Drop Shipment
        3. Return Material Authorizations (RMAs)
      7. Oracle Release Management
        1. Demand-Management Flow
      8. Oracle Shipping
      9. Pricing
        1. Price-List Elements
        2. Maintaining Price Lists
        3. GSA Pricing
        4. Multicurrency Pricing
      10. OM Key Features
        1. Multi-Org Access Control
        2. Customer Acceptance
        3. Item Orderability
      11. Accounting
      12. Integration with Other Modules
        1. Integration with Receivables
        2. Integration with Inventory
        3. Integration with Purchasing
      13. Conversion Issues
        1. Order Import
      14. Responsibilities
      15. Conclusion
    11. 13. Oracle E-Business Tax
      1. Setting Up Taxes in Oracle E-Business Tax
        1. Understanding Your Organization’s Tax Configuration
        2. Setups and Settings for Processing of Taxes on Transactions
        3. Helpful Features for Tax Setup
        4. Integration with Tax-Service Providers
      2. Conclusion
    12. 14. Oracle Projects
      1. Setup
      2. Costing
      3. Billing
      4. Intercompany Projects
        1. Interproject Billing
      5. AutoAccounting
      6. Project-Processing Cycle
      7. Reporting
        1. Project Status Inquiry (PSI) Screen
      8. Integration with Other Modules
        1. Reference Data
      9. Client Extensions
      10. Data Conversion
      11. Conclusion
    13. 15. Oracle Credit Management
      1. An Overview of Oracle Credit Management
        1. Credit-Policy Management
        2. Credit Application
        3. Credit Analysis and the Decision-Making Process
        4. Performance, Risk, and Revenue Management
        5. Credit Management Automation Tools
      2. Credit Management Key Definitions
        1. Defining Credit Analysts
        2. Maintaining Customer Data
        3. Defining Credit Policies
        4. Defining Checklists
        5. Defining Scoring Models
        6. Assigning Automation Rules
      3. Managing the Workload
      4. Credit Management Integration and Public API
      5. Conclusion
    14. 16. Oracle Self-Service Web Applications
      1. Oracle’s Vision and Direction
      2. Oracle Self-Service Web Applications Architecture
        1. Internet Procurement
        2. Oracle Self-Service Time and Self-Service Expenses
        3. Oracle iReceivables
        4. Implementation Considerations
        5. Other Self-Service Web Applications
      3. Conclusion
    15. 17. Oracle Workflow
      1. Workflow Architecture
        1. User Client Tier
        2. Application Server Tier
        3. Oracle Server Tier
        4. Embedded or Stand-Alone
        5. Using Workflow
        6. Prebuilt Workflows
      2. Wizard Overview
        1. Why You Need a Wizard
        2. Using the Implementation Wizard
      3. New Features for Workflow with Oracle EBS Release
      4. Conclusion
    16. 18. New Applications in Oracle E-Business Suite Release 12
      1. Oracle Profitability Manager
        1. An Overview of Profitability Manager
        2. Implementation Overview and Considerations
        3. Using Mapping Rules
        4. Customer-Profitability Rules
        5. Activity Rules
        6. Profitability Manager Workflow Notifications
      2. Oracle Landed Cost Management
        1. An Overview of Functionalities and Features
        2. Landed Cost Management Setup Process
      3. Conclusion
  12. Part III: Managing and Customizing an EBS Environment
    1. 19. The Oracle Financials Environment
      1. Online Operations
        1. Query Mode
        2. Data-Entry Mode
        3. Messages
        4. Navigation and Special Functions in Forms
        5. Display Formats
        6. Multiple Open Windows
      2. Batch Operations
        1. The Concurrent Manager
        2. Concurrent Program Parameters
        3. Request Sets
        4. Printing and Other Means of Output
      3. Flexfields
        1. Key Flexfields
        2. Descriptive Flexfields
        3. Contexts
        4. Flexfield Validation
        5. Flexfield Security
        6. Flexfield Definition
      4. National Language Support (NLS)
        1. AOL-Level Language Determination
        2. National Language Support for Reports
        3. National Language Support for Flexfields
        4. National Language in Data
      5. Alerts
      6. Application Management
        1. Users and Responsibilities
        2. Security
        3. Instances
        4. File Storage
        5. Quickcodes and Lookup Types
      7. Managing the Oracle EBS Environment
        1. Multiple Environments for Development
        2. Multiple Use of the E-Business Suite in Production
        3. Multi-Org
      8. Profile Options
      9. Oracle’s Application Implementation Methodology (AIM)
      10. Hardware Considerations
      11. Conclusion
    2. 20. Oracle E-Business Suite Technical Architecture
      1. Release 12—The E-Business Suite
      2. Architecture Components
        1. The Client Tier
        2. The Applications Tier
        3. The Database Tier
        4. Communications for Each Type of Session
        5. Mapping the Architecture to Hardware
        6. Database-Server Sizing: Your Processor, Memory, and Disk Space
        7. Windows and Unix Operating Systems
      3. Base Software and Communication Technologies
      4. The Transition to Global Installations
        1. Time Zones
      5. Support Advances and Tools
        1. Enhancements and Patchsets
        2. Oracle Enterprise Manager
        3. Backups and Cloning Environments
      6. Conclusion
    3. 21. Security
      1. Architecture of Oracle Release 12 EBS Financials
      2. The Universe of Threats
        1. Unauthorized Activity by Authorized Users of the Applications
        2. Unauthorized Users of the Oracle Applications
        3. Physical Security Threats
        4. Damage Caused by Fraudulent Users
        5. Threats Outside of the Oracle E-Business Suite Applications
        6. RDBMS-Level Compromises
        7. Desktop-Level Security Considerations
        8. Development and Production Environments
        9. Network-Level Compromises
      3. Countermeasures
        1. Security-Policy Definition
        2. Access-Control Policies
        3. Control of Internet Access
        4. An Overview of Public-Key Cryptography
        5. Implementation of Public-Key Cryptography
        6. Virtual Private Networks (VPNs)
        7. Strong Authentication
        8. Virus Threats
        9. Hacker Countermeasures
        10. Functional and Application Security (RBAC)
        11. New Security Features for Oracle E-Business Suite R12
        12. Audit Vault for Oracle E-Business Suite R12
        13. Identity Management for Oracle R12 E-Business Suite
        14. Oracle Internet Directory (OID)
        15. Oracle Access Manager (OAM)
        16. Oracle Adaptive Access Manager (OAAM)
        17. Oracle Virtual Directory
        18. Security-Patch Maintenance for the Oracle R12 E-Business Suite
      4. Conclusion
      5. References
    4. 22. Customization and Modification
      1. Anticipating and Planning Customizations and Modifications
        1. Risks and Costs in Customization
        2. The Framework for Modifications
        3. Custom Output
        4. Overview of the Open Interfaces
        5. Populating the Open Interfaces
        6. Scripts for Inserting Rows into Standard Tables
        7. Updating Standard Tables
        8. Using Descriptive Flexfields
        9. Customizing Workflows
        10. Custom Forms
        11. Messages
        12. Performance Tuning
      2. The Analysis Process
        1. User Reference Manuals
        2. Technical Reference Manuals (TRMs)
        3. Reading Code
        4. Laboratory Method
        5. Detailed Table Analysis
      3. Regression Testing
        1. Using a Regression Tester for Mass Updates
      4. Document Control
        1. Log Maintenance
        2. Configuration Management
        3. Oracle CEMLI Standards—Customizations, Extensions, Modifications, Localizations, and Integrations
      5. Conclusion
    5. 23. Project Organization and Management
      1. Oracle Software as a Step Toward Corporate Maturity
      2. Project-Management Software Versus Spreadsheets
      3. Developing the Project Plan
      4. Project Methodology
      5. The Project Budget
      6. The Project-Management Hierarchy
      7. Team Formation
        1. Functional-Team Leads
        2. Database Administrator
        3. Programmers
      8. Sources of Staffing
      9. Staff Size
      10. Types of Contracts
      11. Project Phasing
      12. Managing Your Relationship with Oracle
        1. Oracle Releases and Versions
        2. Resolving Errors: Service Requests and Patches
        3. Managing Bug Fixes
      13. Reference Sources for Oracle E-Business Suite
        1. Application User References
        2. AOL References
        3. Online Help Within the Applications
        4. Application Technical References
        5. Oracle Tools and RDBMS References
        6. Third-Party Oracle References
        7. Operating-System References
        8. User’s Group Materials
      14. Managing Implementation Activities
        1. The Solution Definition
        2. Written Business Procedures
        3. Testing
        4. Configuration Management
        5. Problem Management
        6. Quality Assurance
      15. Conclusion
    6. 24. Performance Tuning for Oracle R12 Financials
      1. Methodology for Performance Tuning the Oracle E-Business Suite
      2. Load Testing for Oracle E-Business Suite
        1. Why Do We Load Test?
      3. Functional to Technical Specifications and Testing
        1. What to Tune?
      4. Holistic Approach to Performance Tuning
      5. System-Performance Optimization
        1. Hardware Performance Considerations
        2. Operating-System Tuning
        3. Linux Performance Tuning
        4. Unix Performance Tuning
        5. Virtualization and Cloud-Computing Considerations
        6. Storage and Disk Considerations
      6. Areas to Tune—Start Here!
      7. Application and Database Performance Tuning
      8. Application Tech-Stack Tuning
        1. Tuning Concurrent Managers
      9. Tuning PMON Sleep Cycle
        1. Finding Value for PMON Sleep Cycle
        2. Cache Size and Performance for Concurrent Processing
        3. Tuning Number of Processes for Concurrent Managers
        4. Specialization Rules for Concurrent Manager Performance
        5. Work Shifts for Performance with Concurrent Processing
        6. Statistics Collection for Oracle R12 EBS
        7. Application Tech-Stack Tuning
        8. Load Balancing for Application-Tier performance
        9. Tools for Measuring JVM Performance with Oracle R12 EBS
      10. Monitoring Java Performance: Oracle R12 EBS
      11. Database Tuning for Oracle R12 E-Business Suite
        1. Database Parameters for Oracle R12 EBS Sizing Chart
        2. Upgrade Performance Considerations for Oracle R12 EBS
      12. Conclusion
    7. 25. Oracle SOA Suite and BPEL for Oracle EBS
      1. SOA Suite Integration with Oracle R12 E-Business Suite
      2. Prebuilt BPEL Templates for Oracle R12 EBS
      3. Using Oracle BPEL 10g with E-Business Suite Release 12
        1. Installing and Configuring SOA Suite
        2. Install Oracle SOA Suite, Including Oracle BPEL Process Manager
      4. Deploying Oracle E-Business Suite BPEL Business Processes
        1. Preparation Steps Prior to Deploying BPEL Artifacts to Oracle SOA Suite
      5. Troubleshooting Tips for Common Installation and Deployment Issues
      6. Oracle SOA Suite Integration with E-Business Suite
        1. Preparation
      7. Configure Oracle R12 EBS with SOA Suite
        1. Part A: Enabling Oracle E-Business Suite Integrated SOA Gateway Release 12.1
        2. Part B: Configuring SOA Suite with Release 12.1.x for Oracle E-Business Suite
      8. Conclusion
      9. References
    8. 26. Disaster Recovery and Business Continuity
      1. Disaster-Recovery Concepts and Design
        1. Implementing Business Continuity for Oracle EBS
      2. Business-Continuity and Disaster-Recovery Guidelines
      3. Fault Tolerance and High Availability
      4. Requirements for Implementing Fault Tolerance
        1. Fault Tolerance and Replication
      5. High-Availability Solutions for Oracle R12 EBS
        1. Oracle Data Guard
        2. Oracle Streams
      6. Oracle Application Server Clustering
      7. Oracle Real Application Clusters
      8. Oracle RAC Terminology Overview
      9. Configuration Prerequisites
        1. Enabling RAC for Oracle R12 EBS—Rconfig
        2. Copying AutoConfig to the New RDBMS ORACLE_HOME for Oracle 11g R1 11.1.0.
        3. Generating Your Database Context File
        4. Preparing AutoConfig for Oracle R12 EBS with RAC
        5. Generating AutoConfig Configuration Files
      10. Conclusion
    9. 27. Business Intelligence with OBIEE and ODI
      1. Business Intelligence
      2. Dashboards for OBIEE with Oracle R12 EBS
      3. Configuring OBIEE with Oracle R12 E-Business Suite
        1. Embedding a URL to Open Oracle BI Interactive Dashboards
        2. Oracle Data Integrator with Oracle R12 EBS
      4. Knowledge Modules
        1. Creating an Oracle Physical Schema for Oracle Data Integrator
        2. Setting up the Integration Project
        3. Creating an Oracle Model for Oracle EBS
        4. Reverse Engineer the Oracle R12 EBS Tables
        5. Features of Oracle R12 EBS Reverse Engineering
        6. Limitations of the Oracle R12 EBS Reverse-Engineering Process with Oracle Data Integrator
        7. Designing an Interface
        8. Loading Data from E-Business Suite
        9. Integrating Data in E-Business Suite Through the Open Interface
        10. Managing Group IDs
        11. Creating a Group ID
        12. Using an Existing Group ID
        13. Deleting an Existing Group ID
        14. Executing an Open Interface Program
      5. Conclusion
    10. 28. Overview of CRM, HR, and Manufacturing
      1. Customer Relationship Management (CRM)
        1. Marketing
        2. Sales
        3. Service
        4. Channel Revenue Management
      2. Human Resources (HR)
        1. Oracle Human Resources
        2. Oracle Payroll
        3. Oracle Training Administration
        4. Oracle Time Management
      3. Manufacturing
        1. Oracle Bills of Material
        2. Oracle Engineering
        3. Oracle Master Production Schedule
        4. Oracle Material Requirements Planning
        5. Oracle Work in Process
        6. Oracle Manufacturing Execution Systems
        7. Oracle Flow Manufacturing
        8. Oracle Process Manufacturing (OPM)
        9. Oracle Quality
      4. Conclusion
    11. 29. Oracle Fusion Applications—A Preview
      1. Fusion Applications—The New Standard for Business
      2. Conclusion
  13. Index