*ORACLE ERP:

An enterprise resource planning (ERP) system is the heart of a modern business. An ERP system
are the software tools that are used to manage Enterprise Data.
Data circulates through the enterprise as staff uses the system to execute common business
transactions.
Insights flow out of the ERP system to help measure business performance and guide decision-
making.

*What Are ERP Modules?

1. Financial management:
The financial management module is the foundation of an ERP system. By tracking accounts
payable and accounts receivable, plus helping to manage the general ledger, this module puts
your current financial picture and outlook into focus. It also generates and stores balance sheets,
payment receipts, and other key financial documents.
Automation plays a crucial role. The financial module automates tasks related to billing, vendor
payments, expense management, asset management, and joint venture accounting, among other
things. For example, automated cash management makes it simpler to analyze cash transactions
and improve cash flow forecasts. Your accounting team can close the books faster, sometimes
saving a week or more, while complying with stringent guidelines for revenue recognition.
Balance sheet automation supplies near real-time data for the most accurate snapshot of your
company’s financial position.

2. Procurement:

The procurement module improves your ability to purchase the products or materials you need to
make or sell goods. It automates, tracks, and analyzes quotes while helping to prepare and send
purchase orders. Using a list of approved vendors, the module can automate purchases of specific
items, which speeds up the process, enforces compliant spending, improves supplier
relationships, and ultimately helps increase profitability.

3. Risk management:

A risk management and compliance module uses artificial intelligence (AI) and machine learning
to enhance financial controls, enabling finance teams to prevent cash leaks, enforce audits, and
protect against emerging risks—all while saving hours of manual work.
With risk management capabilities, you can stay compliant by automating processes, such as
separation of duties (SoD) reporting and granting and controlling user access. Automation also
accelerates audit transactions so you can quickly identify fraud, errors, and policy violations.
You can also streamline workflows for audit and Sarbanes-Oxley Act (SOX) compliance, risk
management, and business continuity planning.

4. Supply chain management:

Supply chain management (SCM) modules track how supplies and goods move through your
supply chain: from suppliers and sub-suppliers to manufacturers all the way to distributors and
retailers or consumers. It lets you efficiently plan demand, supply, order fulfillment, and
production across your business to reduce disruptions and minimize costs, ensuring the right
inventory is available at the right time and in the right place.

5. Enterprise performance management:

Enterprise performance management (EPM) modules enhance the processes that help your
business plan, budget, forecast, and report on performance. They enable connected planning
(versus old-school siloed planning) by giving a unified view of financial, operational, and line-
of-business planning. These modules also use automation to accelerate the reporting of financial
results.

6. Manufacturing process:

With a manufacturing module, it’s easier for your business to plan and manage production runs.
That includes making sure your facility has the raw materials on hand to meet demand, can
efficiently run a shop floor, and keep costs down—all while ensuring the quality of finished
goods.

7. Customer relationship management:

Customer relationship management (CRM) modules help you manage customers by improving
sales and marketing processes, especially those supporting sales leads. These modules store all
information on customers and prospects, including every customer interaction and purchase
history, and offer segmentation data and targeted cross-sell recommendations.
Capabilities to look for in CRM modules include contact management, communication tracking,
opportunity or lead tracking, order history, issue ticketing, quote creation, and sales agent
productivity. Most importantly, your module must help track customers from the initial
marketing stage and through a quote or sales process, culminating in a sale and ongoing
customer service.

8. Human resources:
A human capital management (HCM) module—sometimes referred to as human resources
management (HRM)—contains detailed records on all employees, including performance
reviews, job descriptions, benefits selections, and attendance/time off. Like other ERP modules,
it supplants annual spreadsheets with automation that continuously gathers data companywide,
reducing duplicate data and increasing accuracy, an important benefit given the sheer amount of
HR data most businesses have.
A human resources module automates tasks, such as employee scheduling, recruitment, and
compensation management.

9. Project management:

This module improves project management with shared visualization tools that help to track
schedules, budgets, and resources. For example, you can see multiple project plans in a single
view, which lets you easily allocate (and reallocate) resources. You can assemble the right
project team by using search filters for roles, skills, and location. You can also better manage
budgets by standardizing how you capture costs throughout the business. Advanced project
management tools also help you maximize cash flow by automating customer invoices and
project billing.

10. ERP analytics:

An ERP analytics module helps finance, procurement, and project management professionals
understand the factors that drive profitability, improve the use of working capital, and control
business expenditures.
ERP analytics yields general ledger insights on profitability and accelerates the collections
process, improving cash flow. It also enhances payables by helping finance teams track on-time
and overdue vendor payment amounts to determine payment urgency. This module controls
company spending by identifying cost savings and fina

*Oracle A.I.M. Methodology and Documentation

Oracle A.I.M. Methodology encompasses a project management methodology with
documentation templates that support the life cycle of an implementation.
A.I.M. encompasses all essential project steps for minimizing risk and facilitating a fast, high-
quality implementation.

A.I.M Methodology Conducted in 6 Phases:

The Sequence of order of task to complete implementation is called AIM Methodology.
1. Definition Stage
1.1 Implementation Steps
 Project Management Plan (PMP)
 Kick of Meeting
 As Is Process
 To be process
1.2 Document Name
 BP 040
 BP 080
 RD 020
2. Operation Analysis
2.1 Implementation Steps
 Mapping
 Gap
 Gap Analysis
2.2 Document Name
 BR 030
 BR 030 (FDD)
3. Solution Design

4. Build
4.1 Implementation Step
 Configuration/Setup
 Testing
 CRP
4.2 Document Name
 BR 100
 TE 040
5. Transition
5.1 Implementation Step
 UAT
 Production
 Configuration
 Data Migration
 User Training
5.2 Document Name
 BR 100 & BR110
 CV
6. Production
6.1 Implementation Step
 Go Live
 Parallel Run
 Post implementation
 Support

A.I.M. Methodology life cycle:

Application Implementation Method is a proven approach for all the activities required to
implement oracle applications.
There are eleven processes of implementation.
1.Business Process Architecture (BP):
 Business Process Architecture refers to the structured representation of an organization's
business processes within the context of Oracle applications.
 It involves mapping out the workflows, activities, tasks, and interactions that occur
within an organization to achieve its business objectives.
  This phase outlines: Existing business practices, Catalog change practices, Leading
Practices, Future Practices.
1. BP.010 Define Business and Process Strategy: It serves as a blueprint for aligning
organizational objectives with process improvement initiatives.
2. BP.020 Catalog and Analyze Potential Changes: Its primary purpose is to identify,
evaluate, and catalogue potential changes or improvements to existing business
processes.
3. BP.030 Determine Data Gathering Requirements: It focuses on establishing the
necessary data collection parameters and methodologies to support process
analysis and improvement initiatives.
4. BP.040 Develop Current Process Model: to analyze and document the existing
state of a business process.
5. BP.050 Review Leading Practices: This document involves examining industry
best practices, benchmarks, and standards relevant to the business process under
consideration.
6. BP.060 Develop High-Level Process Vision: It outlines the overarching vision
and goals for the target state of a business process.
7. BP.070 Develop High-Level Process Design: It involves crafting a blueprint for
the desired future state of a business process, aligning with the overall process
vision.
8. BP.080 Develop Future Process Model: It focuses on creating a detailed
representation of the envisioned future state of a business process, aligned with
the process vision and design.
9. BP.090 Document Business Procedure: It involves the formal documentation of
the finalized process design into comprehensive business procedures or
instructions.

2. Business Requirement Definition (RD)-

 This phase explains about the initial baseline questionnaire and gathering of
requirements.
  Business Requirement Definition (RD) refers to the process of gathering, documenting,
and analyzing the needs and objectives of a business.
1. RD.010 Identify Current Financial and Operating Structure: It involves assessing
and documenting the existing financial and operational structure of an
organization.
2. RD.020 Conduct Current Business Baseline: It involves establishing a
comprehensive baseline of the organization's current business processes,
performance metrics, and operational capabilities.
3. RD.030 Establish Process and Mapping Summary: It involves creating a concise
summary that outlines the key processes and their corresponding mappings
identified during the analysis phase.
4. RD.040 Gather Business Volumes and Metrics: It involves collecting essential
data on business volumes, performance metrics, and key indicators to facilitate
analysis and decision-making.
5. RD.050 Gather Business Requirements: It involves collecting and documenting
the specific needs, objectives, and expectations of stakeholders regarding a
proposed business solution.
6. RD.060 Determine Audit and Control Requirements: It involves identifying and
defining the necessary audit and control mechanisms needed to ensure
compliance, security, and integrity within business processes and systems.
7. RD.070 Identify Business Availability Requirements: It focuses on identifying
and specifying the requirements related to ensuring the availability and continuity
of business operations and services.
8. RD.080 Identify Reporting and Information Access Requirements: It involves
identifying and documenting the requirements related to reporting and accessing
information necessary for decision-making and operational needs.

3. Business Requirement Mapping [BR] –

 The requirements of business are matched with the standard functionality of the oracle
applications.
 It involves mapping each business requirement to the corresponding feature, module, or
component within Oracle's suite of applications.
1. BR.010 Analyze High-Level Gaps: It involves assessing the differences or gaps
between the current state of the business and the desired future state, as outlined
in the high-level business objectives.
2. BR.020 Prepare mapping environment: It involves setting up the necessary tools,
resources, and environments to facilitate the mapping and documentation of
business requirements.
3. BR.030 Map Business requirements: It involves translating gathered business
requirements into detailed and structured documentation, often using various
techniques such as diagrams, matrices, or textual descriptions.
4. BR.040 Map Business Data: It involves identifying, categorizing, and
documenting the data requirements necessary to support the business processes
and functionalities identified in the earlier stages.
5. BR.050 Conduct Integration Fit Analysis: It involves evaluating the compatibility
and alignment of proposed business requirements with existing systems,
processes, and technologies to assess integration feasibility.
6. BR.060 Create Information Model: It involves developing a structured
representation of the information needs and data relationships identified during
the requirements analysis phase.
7. BR.070 Create Reporting Fit Analysis: It involves evaluating the alignment of
proposed business requirements with reporting needs and capabilities to ensure
that reporting solutions adequately meet business objectives.
8. BR.080 Test Business Solutions: It involves developing and executing test plans
to verify that the implemented business solutions meet the specified requirements
and functional expectations.
9. BR.090 Confirm Integrated Business Solutions: It involves validating and
verifying that the implemented business solutions seamlessly integrate with
existing systems, processes, and organizational requirements.
 10. BR.100 Define Applications Setup: It involves specifying the configuration and
setup requirements for applications or software systems to align with the
identified business requirements and operational needs.
11. BR.110 Define security Profiles: It involves specifying the security profiles,
access controls, and permissions required to ensure the confidentiality, integrity,
and availability of data and resources within an organization's applications or
systems.

4. Application and Technical Architecture [TA] –

 Application and Technical Architecture refers to the design and structure of Oracle's
software applications and the underlying technical infrastructure that supports them.
1. TA.010 Define Architecture Requirements and Strategy: It involves establishing
the overarching requirements and strategic direction for the organization's
technology architecture.
2. TA.020 Identify Current Technical Architecture: It involves assessing and
documenting the existing technical infrastructure, systems, platforms, and
applications within an organization.
3. TA.030 Develop Preliminary Conceptual Architecture: It involves creating an
initial conceptual design that outlines the high-level structure, components, and
relationships of the organization's future technology architecture.
4. TA.040 Define Application Architecture: It involves specifying the design
principles, standards, and guidelines for the development and integration of
application systems within the organization's overall technology architecture.
5. TA.050 Define System Availability Strategy: It involves outlining the measures
and procedures necessary to ensure the uninterrupted availability and reliability of
the organization's systems.
6. TA.060 Define Reporting and Information Access Strategy: It involves
establishing a strategic approach to managing how users access and interact with
information resources within the organization.
 7. TA.070 Revise Conceptual Architecture: It involves reviewing and refining the
preliminary conceptual architecture based on feedback, changes in requirements,
or emerging technologies.
8. TA.080 Define Application Security Architecture: It involves specifying the
security measures, controls, and protocols required to protect application systems
and data from unauthorized access, breaches, and cyber threats.
9. TA.090 Define Application and Database Server Architecture: It involves
specifying the design and configuration of application and database servers to
support the organization's application systems and data management needs
effectively.
10. TA.100 Define and Propose Architecture Subsystems: It involves defining the
subsystems or components that comprise the overall technology architecture and
proposing their design and integration approaches.
11. TA.110 Define System Capacity Plan: It involves establishing a plan to ensure
that the organization's systems have the necessary capacity to meet current and
future demands effectively.
12. TA.120 Define Platform and Network Architecture: It involves specifying the
design and configuration of the underlying platforms and network infrastructure
necessary to support the organization's technology solutions.
13. TA.130 Define Application Deployment Plan: It involves outlining the strategy
and procedures for deploying application systems and solutions within the
organization's IT environment.
14. TA.140 Assess Performance Risks: It involves identifying and evaluating
potential risks and challenges related to system performance, such as scalability
issues, bottlenecks, and latency problems.
15. TA.150 Define System Management Procedures: It involves specifying the
procedures and protocols for managing and maintaining the organization's
technology systems effectively.

5. Build and Module Design [MD] –

 This phase indicate the development of new functionality (customization) required by the
clients.
 It mainly details how to design the required forms, database and reports.
1. MD.010 Define Application Extension Strategy: It involves outlining the
approach and guidelines for extending or customizing existing applications to
meet evolving business requirements.
2. MD.020 Define and estimate application extensions: It involves defining the
scope of application extensions or customizations required to meet specific
business needs and estimating the resources, time, and effort needed for their
implementation.
3. MD.030 Define design standards: It involves establishing a set of guidelines,
principles, and best practices to govern the design and development of application
solutions consistently.
4. MD.040 Define Build Standards: It involves establishing guidelines, procedures,
and conventions for building or coding application components consistently and
efficiently.
5. MD.050 Create Application extensions functional design: It involves designing
the functional specifications and requirements for extending or customizing
existing applications to meet specific business needs.
6. MD.060 Design Database extensions: It involves designing the modifications or
extensions to the database schema to support new functionalities or data
requirements introduced by application extensions.
7. MD.070 Create Application extensions technical design: It involves designing the
technical specifications and architecture for implementing application extensions
or customizations.
8. MD.080 Review functional and Technical designs: It involves evaluating and
validating the functional and technical designs of application extensions or
customizations to ensure they meet the business requirements and adhere to
established standards and best practices.
 9. MD.090 Prepare Development environment: It involves setting up the necessary
infrastructure, tools, and resources to support the development of application
extensions or customizations.
10. MD.100 Create Database extensions: It involves implementing the modifications
or extensions to the database schema as per the design specifications to
accommodate new functionalities or data requirements introduced by application
extensions.
11. MD.110 Create Application extension modules: It involves building the necessary
modules or components to implement the functionality specified in the application
extension designs.
12. MD.120 Create Installation routines: It involves developing the procedures and
scripts necessary to install and configure the application extensions or
customizations on target environments.

6. Data Conversion [CV] –

 Data Conversion is the process of converting or transferring the data from legacy system
to oracle applications.
 Example: Transferring customer data from the legacy to the Customer Master.
1. CV.010 Define data conversion requirements and strategy: It involves outlining
the specific needs, approach, and procedures for transferring data from legacy
systems to new ones.
2. CV.020 Define Conversion standards: It involves establishing guidelines, rules,
and conventions to ensure consistency, accuracy, and efficiency during the data
conversion process.
3. CV.030 Prepare conversion environment: It involves setting up the necessary
infrastructure, tools, and resources to facilitate the data conversion process
effectively.
4. CV.040 Perform conversion data mapping: It involves mapping the data fields
and structures from the legacy systems to the corresponding formats in the new
system, ensuring compatibility and accuracy throughout the conversion process.
 5. CV.050 Define manual conversion procedures: It involves outlining the
procedures and protocols for manually converting data that cannot be automated,
ensuring accuracy and completeness during the migration process.
6. CV.060 Design conversion programs: It involves designing the programs or
scripts needed to automate the data conversion process, ensuring efficiency,
accuracy, and scalability.
7. CV.070 Prepare conversion test plans: It involves creating comprehensive test
plans to validate the accuracy, completeness, and integrity of the data conversion
process.
8. CV.080 Develop conversion programs: It involves coding and creating the
programs or scripts necessary to automate the data conversion process based on
the previously defined requirements and designs.
9. CV.090 Perform conversion unit tests: It involves executing unit tests on
individual components of the conversion programs to ensure they function
correctly and meet the specified requirements.
10. CV.100 Perform conversion business objects: It involves executing tests to ensure
that the converted data aligns with the business requirements and that the business
objects function as intended in the new system.
11. CV.110 Perform conversion validation tests: It involves executing comprehensive
validation tests to ensure the accuracy, completeness, and integrity of the
converted data compared to the original source and the requirements set forth for
the new system.
12. CV.120 Install conversion programs: It involves deploying the developed
conversion programs or scripts onto the target environment, ensuring they are
correctly installed and configured for execution.
13. CV.130 Convert and verify data: It involves executing the data conversion
process and performing thorough verification to ensure the accuracy,
completeness, and integrity of the converted data.

7. Documentation [DO] –
 Documentation prepared per module that includes user guides and implementation
manuals.
1. DO.010 Define documentation requirements and strategy: It involves establishing
the documentation needs, standards, and strategies essential for effectively
capturing and communicating project-related information.
2. DO.020 Define Documentation standards and procedures: It involves establishing
the guidelines, formats, and protocols for creating, organizing, and managing
project documentation throughout its lifecycle.
3. DO.030 Prepare glossary: It involves compiling and organizing a comprehensive
list of key terms, definitions, and acronyms used throughout the project to ensure
consistent understanding and communication among project stakeholders.
4. DO.040 Prepare documentation environment: It involves setting up the necessary
infrastructure, tools, and resources to support the creation, storage, and
dissemination of project documentation effectively.
5. DO.050 Produce documentation prototypes and templates: It involves creating
initial drafts or prototypes of various documentation types, such as reports,
manuals, or guides, along with standardized templates to ensure consistency and
efficiency in documentation creation.
6. DO.060 Publish user reference manual: It involves compiling, formatting, and
publishing a comprehensive manual that provides detailed instructions and
information for end-users on how to effectively use the system or product.
7. DO.070 Publish user guide: It involves creating and distributing a concise and
user-friendly guide that provides instructions, tips, and best practices for end-
users to effectively utilize the system or product.
8. DO.080 Publish technical reference manual: It involves compiling and
disseminating a detailed manual that provides technical specifications,
architecture, and implementation details for developers, administrators, or other
technical stakeholders.
9. DO.090 Publish system management guide: It involves creating and sharing a
comprehensive guide that outlines the procedures, best practices, and tools for
managing and maintaining the system effectively.
8. Business System Testing [TE] –
 A process of validating the setup’s, functionality and configured Oracle application
against the defined business requirements and scenarios by QA (functional consultant) to
certify status.
1. TE.010 Define testing requirements and strategy: serves as the foundational
document for planning the testing efforts for an Oracle application
implementation or upgrade project.
2. TE.020 Develop unit test script: involves creating scripts to test individual
units or components of the Oracle application.
3. TE.030 Develop link test script : involves creating scripts to test the
integration and connectivity between different components or modules of the
Oracle application.
4. TE.040 Develop system test script : involves creating scripts to
comprehensively test the entire Oracle application system.
5. TE.050 Develop systems integration test script : involves creating scripts to
test the integration points between different systems or components within the
Oracle application environment.
6. TE.060 Prepare testing environments: involves setting up the necessary
infrastructure and configurations to support various testing activities.
7. TE.070 Perform unit test: involves executing the previously developed unit
test scripts to assess the functionality and behavior of individual units or
components of the Oracle application.
8. TE.080 Perform link test: involves executing previously developed link test
scripts to assess the integration and connectivity between different
components or modules within the Oracle application environment.
9. TE.090 perform installation test: involves executing previously developed
installation test scripts to validate the successful installation and configuration
of the Oracle application system.
10. TE.100 Prepare key users for testing : involves preparing and empowering key
users who will be participating in testing activities.
 11. TE.110 Perform system test : involves executing previously developed system
test scripts to assess the functionality, performance, and reliability of the
Oracle application system as a whole.
12. TE.120 Perform systems integration test : involves executing previously
developed integration test scripts to assess the interoperability and
communication between different systems or components within the Oracle
application environment.

9. Performance Testing [PT] –

 Performance testing is the evaluation of transactions saving time, transaction retrieval
times, workflow background process, database performance, etc.
 It ensures they meet performance requirements and can handle expected workloads
efficiently.
1. PT.010 – Define Performance Testing Strategy: outlines the overarching
strategy and approach for conducting performance testing of the Oracle
applications
2. PT.020 – Identify Performance Test Scenarios: focuses on identifying specific
scenarios that will be executed during performance testing of the Oracle
applications.
3. PT.030 – Identify Performance Test Transaction: focuses on identifying
specific transactions or activities within the Oracle applications that will be
tested for performance.
4. PT.040 – Create Performance Test Scripts: focuses on developing the scripts
or scenarios that will be used to execute performance tests on the Oracle
applications.
5. PT.050 – Design Performance Test Transaction Programs: focuses on
designing the programs or scripts that will be used to execute performance
tests on the Oracle applications.
 6. PT.060 – Design Performance Test Data: focuses on designing the data sets
and scenarios that will be used during performance testing of the Oracle
applications.
7. PT.070 – Design Test Database Load Programs: focuses on designing
programs or scripts that will be used to generate database load during
performance testing of the Oracle applications.
8. PT.080 – Create Performance Test Transaction Programs: focuses on creating
the programs or scripts that will be used to execute performance tests on
specific transactions within the Oracle applications.
9. PT.090 – Create Test Database Load Programs: focuses on creating the
programs or scripts that will be used to generate database load during
performance testing of the Oracle applications.
10. PT.100 – Construct Performance Test Database: outlines the process of
creating a dedicated database environment specifically designed for
conducting performance testing of the Oracle applications.
11. PT.110 – Prepare Performance Test Environment: outlines the steps to set up
and configure the environment for conducting performance testing of Oracle
applications.
12. PT.120 – Execute Performance Test : outlines the process of conducting
performance tests on the Oracle applications to evaluate their performance,
scalability, and reliability under various load conditions.

10. Adoption and Learning [AP] –

 Adoption and Learning (AP) refers to the phase of the implementation process that
focuses on preparing end-users to effectively use and adopt the Oracle application being
implemented.
 This phase is critical for ensuring a smooth transition to the new system and maximizing
the benefits of the Oracle solution.
1. AP.030 – Develop Project Team Learning Plan: focuses on creating a
structured plan to enhance the skills and knowledge of the project team
members.
2. AP.040 – Prepare Project Team Learning Environment: focuses on creating an
environment conducive to learning and skill development for the project team
members.
3. AP.050 – Conduct Project Team Learning Events: outlines the plan for
organizing and facilitating learning events for the project team members.
4. AP.060 – Develop Business Unit Managers ‘Readiness Plan: focuses on
preparing business unit managers for the changes and challenges associated
with the implementation of Oracle applications.
5. AP.070 – Develop Project Readiness Roadmap: serves as a strategic plan for
ensuring the readiness of the project team, stakeholders, and organizational
resources for the implementation of Oracle applications.
6. AP.080 – Develop and Execute Communication Campaign: outlines the plan
for effectively communicating key information about the implementation of
Oracle applications to stakeholders, users, and the broader organization.
7. AP.090 – Develop Managers’ Readiness Plan: outlines the strategy for
preparing managers within the organization for the implementation of Oracle
applications. outlines the strategy for preparing managers within the
organization for the implementation of Oracle applications.
8. AP.100 – Identify Business Process Impact on Organization: focuses on
assessing how the implementation of Oracle applications will affect the
organization's business processes.
9. AP.110 – Align Human Performance Support Systems: focuses on ensuring
that the organization's support systems and processes are aligned with the
implementation of Oracle applications to facilitate optimal human
performance.
10. AP.120 – Align Information Technology Groups: focuses on ensuring that
various IT groups within the organization are aligned with the implementation
of Oracle applications.
 11. AP.130 – Conduct User Learning Needs Analysis: focuses on identifying the
specific learning needs of end-users regarding the Oracle applications being
implemented.
12. AP.140 – Develop User Learning Plan: outlines the strategy for providing
training and support to end-users to ensure their proficiency in using the
Oracle applications being implemented.
13. AP.150 – Develop User Learning ware: ocuses on creating the learning
materials and resources necessary to support end-user training for the Oracle
applications being implemented.
14. AP.160 – Prepare User Learning Environment: focuses on creating a
conducive environment for end-user training and learning activities related to
the Oracle applications being implemented.
15. AP.170 – Conduct User Learning Events: outlines the plan for organizing and
delivering user training events for the Oracle applications being implemented.
16. AP.180 – Conduct Effectiveness Assessment: focuses on evaluating the
effectiveness of user training and learning activities for the Oracle
applications being implemented.

11. Production Migration [PM] –

 The process of “decommissioning” of legacy system and the usage of oracle
application system.
 Production Migration (PM) refers to the final phase of the implementation process,
during which the configured Oracle application is migrated from the development or
test environment to the production environment.
 This phase is critical as it marks the transition from the implementation project to the
live operation of the Oracle application in a production environment.
1. PM.010 – Define Transition Strategy: is a crucial deliverable that outlines the
plan for transitioning from the implementation phase to the operational
phase of the project.
2. PM.020 – Design Production Support Infrastructure: "Design Production
Support Infrastructure," plays a critical role in planning the infrastructure
needed to support the system once it's operational.
3. PM.030 – Develop Transition and Contingency Plan: "Develop Transition and
Contingency Plan," is a key deliverable that focuses on preparing for the
transition from implementation to production, as well as outlining contingency
measures to address potential risks or disruptions.
4. PM.040 – Prepare Production Environment: Prepare Production
Environment," is a crucial deliverable focused on readying the production
environment to support the live operation of the system.
5. PM.050 – Set Up Applications: "Set Up Applications," is a pivotal deliverable
that focuses on configuring and customizing the Oracle applications according
to the organization's specific requirements.
6. PM.060 – Implement Production Support Infrastructure: "Implement
Production Support Infrastructure," is a critical deliverable focused on
establishing the infrastructure necessary to support the live operation of the
system.
7. PM.070 – Verify Production Readiness: "Verify Production Readiness," is a
pivotal deliverable focused on ensuring that all aspects of the system and its
supporting infrastructure are ready for production deployment.
8. PM.080 – Begin Production represents: the phase where the system is
officially launched into the live production environment.
9. PM.090 – Measure System Performance: is a critical component that focuses
on evaluating the performance of the implemented system in the production
environment.
10. PM.100 – Maintain System: is a crucial component that focuses on the
ongoing support and maintenance of the implemented system in the
production environment.
11. PM.110 – Refine Production System: is a significant deliverable focused on
continuously improving the production system to meet changing business
needs and optimize its performance.
 12. PM.120 – Decommission Former Systems: outlines the plan for retiring or
decommissioning the legacy systems that have been replaced by the new
Oracle applications.
13. PM.130 – Propose Future Business Direction: focuses on providing
recommendations for the organization's future business direction based on the
successful implementation of Oracle applications.
14. PM.140 – Propose Future Technical Direction: focuses on recommending the
organization's future technical direction based on the successful
implementation of Oracle applications.

*Enterprise business structure

The enterprise business structure is essential for organizing and managing various aspects of
an organization.

Organization Structure Levels:

1. Business Groups: These represent distinct business units within your enterprise.
They can be based on geographical locations, product lines, or other criteria.

2. Primary Ledgers: Defined in Accounting Setup Manager, primary ledgers are

used for financial reporting and accounting purposes.

3. Legal Entities: These are distinct legal entities recognized by law. They have
their own financial and legal responsibilities.

4. Operating Units: Operating units are operational entities responsible for day-to-
day activities. They can be associated with specific business groups and legal
entities.

5. Inventory Organizations: These manage inventory and supply chain operations.

*P2P CYCLE IN ORACLE:
The p2p cycle in Oracle apps is a process that is responsible for the procurement and payments
of goods and services. It starts with a requisition being created and ends with the supplier being
paid. You must complete several steps for the cycle to be complete.
Each step is essential in the Oracle procure-to-pay process.

Essential Steps in the P2P Cycle in Oracle Apps:

1. Creating a requisition
2. Request for quotation
3. Quotations
4. Quote analysis
5. Creating a purchase order
6. Receiving the goods or services
7. Creating an invoice
8. Creating account entries
9. Making the payment to the supplier
1. Creating a requisition

The first step in the p2p cycle in Oracle apps is creating a requisition. This is a request for goods
or services sent to the supplier.

You will then need to fill out the requisition form. The requisition must include all the necessary
information to create a purchase order, including the item code, description, quantity, and price.

2. Request for quotation

After the requisition has been created, you can generate a request for a quotation (RFQ). It is a
document sent to the supplier that outlines the goods or services needed and the buyer’s price.
The RFQ will also include any other terms and conditions relevant to the purchase.

3. Quotations

Once the RFQ has been received, the supplier will send back a quotation. This document will
include the price of the goods or services and any other terms relevant to the purchase.
4. Quote analysis

Once the quotation has been received, it will need to be reviewed and approved. That is known
as quote analysis. Quote analysis examines the supplier’s quotation and ensures that it meets all
the buyer’s requirements.

5. Creating a purchase order

After the quotation has been approved, you can generate a purchase order (PO). The purchase
order is a legal document that outlines the terms of the sale.

It will include the price, quantity, and delivery date of the goods or services. The purchase order
will also include any other relevant terms and conditions.

6. Receiving the goods or services

Once the goods or services have been ordered, they must be received. That is done by entering
the accepted quantity into the receiving form.

The receiving form will also include fields for the supplier, ship-to address, and delivery date.
This step will be completed once all of the information has been entered.

7. Creating an invoice

An invoice can be created after the goods or services have been received. The invoice is a
document that outlines the price of the goods or services and any other terms that are relevant to
the purchase.

The invoice will also include a due date. This step will be completed once all information has
been entered.

8. Create accounting entries

After the invoice has been created, it will need to be reviewed and approved. This is known as
invoice validation. Invoice validation checks the supplier’s invoice and ensures it matches the
purchase order.

Once the invoice has been approved, you can generate accounting entries. These entries will
debit the accounts payable account and credit the cash account.

9. Making the payment to the supplier

The final step in the p2p cycle in Oracle apps is making the payment to the supplier. This is done
by entering the invoice and purchase order numbers into the payment form.
The payment form will also include fields for the supplier, ship-to address, and delivery date.
Once all of the information has been entered, the payment process will be completed.

*Order to Cash (O2C) cycle

It is a comprehensive process that involves several steps from the time an order is entered until
the cash is received and recorded. Here’s a high-level overview of the O2C cycle in Oracle EBS:

1. Enter the Sales Order:

This is the initial step where the sales order is created with customer details, items, and
quantities.
2. Book the Sales Order:
The order is confirmed or booked, changing the status of the order to 'BOOKED’.
3. Launch Pick Release:
This step involves releasing the order for picking in the warehouse.
4. Ship Confirm: After picking, the order is shipped, and the status is updated to reflect that
the goods have been sent.
5. Create Invoice:
Post-shipment, an invoice is generated for the order.
6. Create Receipts:
Payments are received against the invoice, which can be done manually or using Auto
Lockbox.
7. Transfer to General Ledger (GL):
The financial details of the transaction are transferred to the GL.
8. Journal Import:
The journal entries are imported into the GL.
 9. Posting:
Finally, the journal entries are posted to the GL, completing the O2C cycle.

Each of these steps involves various Oracle EBS modules such as Order Management, Inventory,
Receivables, and General Ledger. The process ensures that all financial transactions related to
the sales order are accurately captured and reflected in the company’s financial statements.
FINANCIAL FUNCTIONAL:

*Oracle financial applications:

In Oracle E-Business Suite (EBS), the financial applications cover a wide range of modules that
collectively manage various aspects of an organization's financial operations. Here are some of
the key Oracle Financial Applications within EBS:

 General Ledger (GL): The GL module is the core of Oracle EBS financials. It manages
the organization's financial data and supports financial reporting and analysis. GL enables
users to define and maintain the chart of accounts, record journal entries, perform
financial consolidations, and generate financial statements.

 Accounts Payable (AP): The AP module manages the organization's payments to

vendors and suppliers. It facilitates invoice processing, payment processing, expense
 management, and vendor management. AP integrates with procurement and GL modules
to ensure accurate financial recording and reporting.

 Accounts Receivable (AR): The AR module handles customer invoicing, receipts, and
collections. It enables organizations to manage customer credit, track receivables, apply
cash receipts, and generate customer statements. AR integrates with sales order
processing and GL modules to streamline revenue recognition and cash management
processes.

 Fixed Assets (FA): The FA module manages the organization's fixed assets, such as
property, plant, and equipment. It enables users to track asset acquisitions, depreciation,
retirements, and transfers. FA integrates with AP and GL modules to ensure accurate
capitalization and depreciation accounting.

 Cash Management (CE): The CE module helps organizations manage their cash
positions, bank accounts, and cash transactions. It facilitates bank reconciliation, cash
forecasting, and liquidity management. CE integrates with AR, AP, and GL modules to
provide real-time visibility into cash flows and balances.

*Reconciliation involves comparing and verifying two sets of records to ensure accuracy and
consistency.

Key points include:

 Reconciliation checks that figures are correct and in agreement.
 It confirms that accounts in a general ledger are consistent and complete.
 The process involves matching transactions recorded internally against external
statements (e.g., bank statements).

*The Chart of Accounts (COA) is a structured list of the organization's general ledger (GL)
accounts. It serves as a foundation for recording financial transactions. The COA typically
includes various categories, such as assets, liabilities, equity, revenue, and expenses, each
containing specific accounts relevant to the organization's financial activities.

 Assets: Accounts related to resources owned by the organization, such as cash,

inventory, equipment, and property.
 Liabilities: Accounts representing obligations or debts owed by the organization,
such as loans, accounts payable, and accrued expenses.
 Equity: Accounts reflecting the organization's ownership interests, including
common stock, retained earnings, and other equity accounts.
 Revenue: Accounts related to income earned by the organization from its business
activities, such as sales revenue, service revenue, interest income, etc.
  Expenses: Accounts representing costs incurred by the organization in generating
revenue, including salaries, rent, utilities, marketing expenses, etc.
*A general ledger is a record of all past transactions of a company, organized by accounts. It is
the foundation of a company’s double-entry accounting system. General ledger accounts
encompass all the transaction data needed to produce the income statement, balance sheet, and
other financial reports.
*Subledgers: It provides detailed accounting activity. Subledgers give accounting detail without
adding accounts to your chart of accounts. For this reason, subledgers are often used for
transaction classifications that are not a permanent part of your chart of accounts, such as
detailed travel expenses for account representatives.

*Subsidiary accounting: It provides detailed accounting activity. Subsidiary accounts are

permanent. If you want to track revenues and expenses by account representative using
subsidiary accounting, you must create a subsidiary account for each account representative and
attach it to each appropriate object account for revenues and expenses. This could mean adding
several hundred accounts to your chart of accounts.

You can use a subsidiary account and a subledger in the same transaction, if necessary.

*General ledger:
Sample business transaction:

In Oracle E-Business Suite (EBS), the General Ledger (GL) module is a central component for
managing an organization's financial data and generating financial reports. The structure of the
General Ledger in Oracle EBS is based on several key elements:

1. Chart of Accounts (CoA):

- The Chart of Accounts defines the organization's unique accounting structure, including the
various account segments used to categorize financial transactions.
- Each segment represents a different dimension of the organization's business, such as
company, department, account type, etc.
- The CoA serves as the foundation for recording and reporting financial transactions within
the General Ledger.

Segments: Segments are individual parts of the flexfield structure. For example, if you're
creating a flexfield for capturing product codes, you might have segments for product category,
sub-category, and so on.
 1. Account: This segment represents the primary account code, which categorizes
transactions based on their nature, such as assets, liabilities, equity, revenue, or expenses.
2. Company: Often used to represent different legal entities or business units within the
organization. It allows for the segregation of financial data by company for reporting and
analysis purposes.
3. Cost Center: Used to track expenses and revenues by specific departments, divisions, or
cost centers within the organization. It helps in monitoring and controlling costs at a
granular level.
4. Natural Account: Similar to the Account segment, this segment further categorizes
transactions based on their nature, such as specific types of assets, liabilities, revenues, or
expenses.
5. Intercompany: Used for intercompany transactions between different entities or business
units within the same organization. It facilitates the reconciliation and elimination of
intercompany balances during consolidation.
6. Location: Represents physical locations or geographical regions where business
transactions occur. It helps in analyzing financial performance across different locations
or regions.
7. Department: Similar to the Cost Center segment, this segment tracks expenses and
revenues by specific departments or functional areas within the organization.
8. Product: Used to classify transactions based on the products or services offered by the
organization. It enables analysis of financial performance by product lines or categories.
9. Project: Used to track expenses and revenues associated with specific projects or
initiatives undertaken by the organization. It facilitates project accounting and monitoring
of project profitability.

Segment Qualifiers: Segment qualifiers are used to further define the behavior of segments.
They determine how a segment behaves and what values it can accept. For instance, you might
specify that a segment can only accept numeric values or that it should have a specific length.

2. Accounting Flexfield (Account Code Combination):

- The Accounting Flexfield (AFF) is a key flexfield structure used to define the account code
combinations within the Chart of Accounts.
- It consists of multiple segments, each representing a different segment of the Chart of
Accounts.
- Users define the structure and values for each segment of the Accounting Flexfield to capture
the necessary financial information.

I. Descriptive Flexfield – Capture additional information. Stored in attributes.

Display in form as []. DFF’s are of two types:
a) Global: Always appear on form.
b) Context-Sensitive: May/ may not appear. Depends on the form field.
II. Key Flexfield – Predefined by Oracle. Made up of segments where each segment
has value and meaning. The set of segments is called Code Combination.
3. Ledgers:
- In Oracle EBS, multiple ledgers can be defined to represent different accounting
representations, such as primary ledger, reporting ledger, or secondary ledger.
- Each ledger has its own chart of accounts, accounting calendar, and currency.
- Ledgers allow organizations to maintain separate accounting records for statutory reporting,
management reporting, or other purposes.

4. Calendar:
- The accounting calendar defines the fiscal periods and periods of operation for the
organization.
- It includes parameters such as period start and end dates, period types (monthly, quarterly,
etc.), and accounting periods.
- The calendar structure facilitates the recording and reporting of financial transactions within
defined accounting periods.

5. Currency:
- Oracle EBS supports multiple currencies, allowing organizations to record transactions and
generate reports in different currencies.
- Each ledger can have its own functional currency and foreign currencies, enabling multi-
currency accounting and reporting.

6. Journal Entries:
- Journal entries are used to record financial transactions in the General Ledger.
- Users can enter manual journal entries or generate automated entries through various sub-
ledgers and modules within Oracle EBS.
- Journal entries are posted to the appropriate accounts based on the defined account code
combinations and accounting rules.

Overall, the General Ledger structure in Oracle EBS is highly configurable and allows
organizations to tailor their accounting processes to meet specific business requirements while
maintaining compliance with accounting standards and regulations.

 Transaction components:
1. Transaction Date
2. Account Details
3. Transaction Amount
1) Transaction Date: First need to create a calendar.
2) Accounting calendar: In the General Ledger module is a fundamental setup that defines
the accounting year and the periods it contains. It’s crucial for managing the financial
cycles of a business, and here’s how it works:

 Defining Calendars: You create a calendar to define an accounting year and its periods.
It’s recommended to set up one year at a time, specifying the types of accounting periods
to include in each year.
  Adding Periods: You add accounting periods to your calendar to define the number of
periods in the calendar year. This can include both adjusting and non-adjusting
accounting periods.
 Period Types: When defining a set of books, you assign it a period type. When you
assign a calendar to a set of books, only the periods with the corresponding period type
apply.
 Navigation: In General Ledger, you navigate to Setup -> Financials -> Calendars ->
Accounting to define or modify your accounting calendar.

It’s important to carefully consider the type of calendar you need for your organization since
changing it after entering accounting data can be complex and may require assistance from an
Oracle consultant. Defining your calendar at least one year before your current fiscal year can
help reduce the amount of period maintenance at the start of each accounting period.

o Calendar type:
 Financial year: It is used in government accounting, which varies between countries,
and for budget purposes. It is also used for financial reporting by businesses and other
organizations. It is classified into 2 types:
1. Fiscal Year: Starts in one year and ends in another year. e.g. India-1 April 2023 to
31 March 2024
2. Calendar year: starts in one year and ends in same year. e.g. USA- Jan23 to
dec23

o Period Type:
1. Month :12
2. Day: 365
3. Quarter: 4
4. Week: 53
5. 6 Months: 2
Adjusting Period:
In the system, while making calendar if periods are more than 12, then those additional periods
are adjusting periods.
In business, if you want to pass adjustments entries, instead of passing those entries in actual
periods, you may maintain separate period called adjusting period. So that system will support
and even you can track those adjusting transactions entries separately.
An "adjustment period" refers to any accounting period set up to adjust balances prior to the
closing period of the year. These periods are adjusted to "per12" and consequently are referred to
as "per13". Typically, dates within the adjustment period overlap regular accounting periods.
 *Ledger is an entity where we record the business information like selling and purchasing
details.
We define 4C’s in Ledger.
1. Chart of Accounts: Here we define structure, segments and segment values.
2. Currency: INR, AUD, USD, GBP
3. Calendar: We have two types
a. 01-Jan-2015 to 31-Dec-2015 — Calendar
b. 01-Apr-2015 to 31-Mar-2015 — Fiscal (Any calendar other than calendar {like above} is
Fiscal calendar)
4. Convention: Also called accounting method. We have two types
a. Cash Basis of Accounting – As on when transaction takes place. Immediate settlement.
b. Accrual Basis of Accounting – Not immediate settlement. Pay later.

*Security Profile:

a security profile refers to a mechanism used to control access to specific data or functionality
within the system. It is an integral part of the Oracle EBS security model, which ensures that
users have appropriate levels of access based on their roles and responsibilities.

Purpose: Security profiles are used to define and enforce data security policies. They control
which users can access specific data or perform certain actions within the application.
*Setup of General Ledger in oracle application:
To setup GL like chart of Account, Set of books, OU, legal entity etc.

1. Need to add responsibility i.e. General Ledger.

2. NAVIGATION: Setup-Financials-Flexfields-key-segments.

3. In Application, need to put query f+11 and search ‘Gen%Led%’ and ctrl+ f11 to
execute.

4. We have three types of flexfield title

a) accounting flexfield

b) Reporting flexfield

c) GL as a flexfield

5.we define chart of accounts in accounting flexfield.

6. Add code i.e.your COA e.g. ‘COA_T’

7.first add segments and after that add segment qualifier (save it )

Segment qualifier for company and account are mandatory.

A. company -Balancing segment

B. Branch

C. Department - Cost center

 D. Account - Natural Account

E. Intercompany- Intercompany segment

F. Future1 (not needed)

8. Add value set like TRUU_ COMPANY(Segment1), TRUU_BRANCH(Segment2),

etc

9. Open company and we have to make all segment are required.

10.Lastly in key flexfield segment window, check freeze flexfield definition and cross
validate segments.

*Journal Creation:

Journals are records of financial transactions entered into the system. They play a crucial
role in maintaining accurate financial records and facilitating the accounting process.

Navigation: General ledger responsibility < Journals < Enter < New Batch < add batch <
Journals < add entries (credit and debit) < Post
P2P Cycle:

P2P Accounting Entries.

P2P Cycle
Sr. No Accounts Dr/Cr
1 Requisition No Accounting Entries
2 Purchase Order No Accounting Entries
3 Receipt No Accounting Entries
Receiving
A Inventory Receiving A/c Dr
AP Accrual A/C Cr
Deliver
B Expense Charge A/C Dr
Inventory Receiving A/c
Invoice
4 AP Accrual A/C Dr
Liability A/C Cr
Payment
5 Liability A/C Dr
Cash Clearing A/C Cr
Bank Reconciliation
6 Cash Clearing A/C Dr
Cash/Bank A/C Cr
 1. Requisition
Go to Purchasing Responsibility > Requisitions > Requisitions
Click on Distributions:

Click on Save
Check whether the Requisition is Approved or Not.
 2. Create PO.
Create Purchase Order through Requisition.
N: Purchase Order > AutoCreate

Search by Requisition no.

Add Supplier and click on create:

Click on add to document and create.

Check whether PO is approved or not:
 3. Create Receipt
Navigations >PO Super User Pune > Receiving > Receipts

Click on Find
Select the Purchase Order for which Receipt is created.
Save your work and Click on Header.
Check a line and click on save.
 4. Create PO Matched Invoice
Create Invoice through Payable.
N: Payable > Invoices > Entry > Invoices

Search by PO number. Fill the lines > save

Click on Distribution:

Validate Invoice:
Amount automatically gets updated with addition of respective taxes:
Update amount in the upper section , save and again Validate Invoice.
Check status (status should be validated):
Do Create Accounting for the same.
5. Create Payment
Do create accounting for Payment.
Create accounting > Final post > Ok

We can check the Invoice is paid:

Here the discount is applied.
Check status for purchase order:
If the payment is completed then the status will be Approved, Closed. And if the payment is
partial then the status will only be approved.
 6. Manually reconcile bank statement lines
Navigation: CM Super User -->Bank Statements--> Bank Statements and Reconciliation
Click (B) New

Enter Bank Statement Lines.

• Click (B) Lines.

Enter bank statement lines as per your bank statements for Receipt, Payment
transactions

Click (I) Save.

Reconcile the Payment done above in system
Navigation: CM Super User > Bank Statements > Bank Statements and Reconciliation
Enter following details:

Account Number: 9738810144

Statement Number: 2July2020

Click on ‘Find’ button on Find Banks Statements

Click on ‘Review’ button to Review Statement Information

Click on ‘Lines’ button to review statement lines

Check the status of a line – whether it is Reconciled or Unreconciled

Click on any line with Unreconciled status

Click on ‘Available’ button

Click on ‘Find’ button

Click checkbox to select the payment and then click on ‘Reconcile’ button
Verify the Payment status
* Purchase orders types:
In the procure-to-pay (P2P) cycle, various types of purchase orders (POs) can be used depending
on the nature of the purchase and the business requirements. Here are some common types of
purchase orders:

1. Standard Purchase Order (PO):

a. This is the most common type of purchase order used for one-time purchases of
goods or services.
b. It specifies the items or services being purchased, quantities, prices, terms, and
delivery details.
2. Blanket Purchase Order (BPO):
a. A BPO is used for repetitive purchases from a specific supplier over a period,
typically for a fixed quantity or amount.
b. It establishes a long-term agreement with the supplier, allowing for multiple
releases against the same agreement.
3. Contract Purchase Order (CPO):
a. Similar to a BPO, a CPO is used for recurring purchases from a specific supplier.
b. It's often used for longer-term commitments, such as ongoing services or
maintenance agreements.
c. Contract purchase agreement with suppliers to agree on specific terms and
conditions without indicating the goods or services that you will be purchasing,
later you should rise Standard purchase order referencing your contract.
4. Planned Purchase Order: Predefined schedule
a. A planned PO is a non-binding commitment to purchase goods or services at
specified terms.
b. It's used for internal planning purposes and does not generate financial
transactions until converted into a standard or blanket PO.
5. Scheduled Purchase Order:
a. A scheduled PO is used when purchases need to be made at specific intervals over
a period of time.
b. It allows for the creation of multiple releases against the same PO, each with its
own delivery schedule.
6. Drop Ship Purchase Order:
a. A drop ship PO is used when the buyer purchases goods from a supplier but has
them shipped directly to the end customer.
b. The supplier ships the goods directly to the customer without the buyer taking
possession of the items.
7. Service Purchase Order:
a. This type of PO is used for procuring services rather than goods.
b. It outlines the scope of work, deliverables, milestones, payment terms, and other
relevant details.
8. Internal Purchase Order:
a. An internal PO is used for purchasing goods or services within the organization,
typically between different departments or cost centers.
b. It helps in tracking interdepartmental transactions and expenses

*Invoice types(payable):
In the procurement and payment processes,

1. Standard Invoice: This is the basic type of invoice used for billing a supplier for goods
or services received.
2. Credit Memo: Credit memos are issued by suppliers to correct an overbilling, return of
goods, or any other situation where the supplier owes the buyer a credit.
3. Debit Memo: A debit memo is created when additional charges are incurred, such as
penalties or late fees, or when there's an increase in the invoice amount.
4. Prepayment Invoice: This type of invoice represents a payment made in advance of
receiving goods or services. It records the prepayment amount and later applies it to one
or more standard invoices.
5. Mixed Invoice: Similar to the mixed invoice in Receivables, a mixed invoice in Payables
allows for different types of lines, such as standard, prepayment, and debit memo lines, to
be combined on a single invoice.
6. Expense Report Invoice: These invoices are generated from employee expense reports,
typically for reimbursable expenses incurred by employees during business activities.
7. Interest Invoice: When there are overdue invoices, and interest charges are applied
according to the payment terms, interest invoices are generated.
8. Withholding Tax Invoice: Invoices for which withholding tax is applied are termed
withholding tax invoices. These are used to track taxes withheld from payments to
suppliers or vendors.
9. Recurring Invoice: Recurring invoices are automatically generated at specified intervals
(e.g., monthly, quarterly) for repetitive charges such as service contracts or utilities.
10. PO Matched Invoice: Invoices matched to purchase orders (PO) in the system are
termed PO matched invoices. These invoices are created when goods or services have
been received, and the invoice matches the PO and receipt.

Invoice matching ways:

2-way matching verifies that purchase order and invoice information match within your
tolerances as follows:
 o Quantity billed is less than or equal to Quantity ordered

o Invoice price is less than or equal to Purchase order price

3-way matching adds a third criterion to verify that receipt and invoice information match with
the quantity tolerances you define:

o Quantity billed is less than or equal to Quantity received

4-way matching adds a fourth criterion to verify that acceptance documents and invoice
information match within the quantity tolerances you define:

o Quantity billed is less than or equal to Quantity accepted

When you match to a purchase order, Payables automatically performs 2-way matching. In the
Purchasing Options window you can choose to additionally use 3-way or 4-way matching. You
can change the invoice match option at the supplier, supplier site and purchase order shipment
levels.

If the invoice and purchase order do not match within the tolerances you define for quantity and
price, Approval places a matching hold on the invoice. You must release the hold before you can
pay the invoice.

Order to Cash (O2C)

The Order to Cash (O2C) process in Oracle R12 involves a series of steps that handle customer
orders from order entry through to payment collection. This process typically includes various
Oracle E-Business Suite modules such as Order Management, Inventory, Shipping Execution,
Receivables, and General Ledger.

Here’s an overview of the O2C process and the steps involved in setting it up in Oracle R12:
Order to Cash (O2C) Process Overview
1. Order Entry
1. Entering customer orders into the system.
o Order Processing
2. Validating, booking, and reserving orders.
o Inventory Management
3. Managing inventory and ensuring stock availability.
o Shipping Execution
4. Picking, packing, and shipping the order to the customer.
o Invoicing
5. Generating and sending invoices to the customer.
o Receivables Management
6. Managing receivables and collecting payments.
o Accounting
7. Recording transactions in the General Ledger.

Detailed Steps for Setting Up O2C in Oracle R12

1. Define Order Management System Parameters
Configure the basic settings for order management.
Steps:
o Navigate to Order Management Super User responsibility.
1. Go to Setup -> System Parameters -> Define.
2. Set the parameters for order processing, invoicing, and other settings.

2. Define Inventory Organizations

Create and configure inventory organizations for managing stock.
Steps:
3. Navigate to Inventory responsibility.
1. Go to Setup -> Organizations -> Organizations.
2. Define the inventory organizations, including location, organization classification,
and other details.
3. Define Shipping Networks
Set up shipping networks for managing inter-organization transfers.
Steps:
3. Navigate to Inventory responsibility.
1. Go to Setup -> Organizations -> Shipping Networks.
2. Define shipping networks between different inventory organizations.
4. Define Items and Item Categories
Create items and categorize them for better management and reporting.
Steps:
3. Navigate to Inventory responsibility.
 1. Go to Items -> Master Items.
2. Define items, assign categories, and set attributes.
5. Define Price Lists
Set up price lists for the items being sold.
Steps:
3. Navigate to Order Management Super User responsibility.
1. Go to Pricing -> Price Lists.
2. Define price lists, including item prices, discounts, and effective dates.
6. Enter and Book Sales Orders
Create sales orders and book them for processing.
Steps:
3. Navigate to Order Management Super User responsibility.
1. Go to Orders, Returns -> Sales Orders.
2. Enter the order details, including customer, items, and quantities.
3. Validate and book the order.
7. Pick Release and Ship Confirm
Process the order for shipping.
Steps:
4. Navigate to Order Management Super User responsibility.
1. Go to Shipping -> Transactions.
2. Perform pick release to move items from inventory to the shipping stage.
3. Confirm the shipment to update inventory and create shipping documents.
8. Generate and Print Invoices
Generate invoices for shipped orders and send them to customers.
Steps:
4. Navigate to Receivables responsibility.
1. Go to Transactions -> Transactions.
2. Generate invoices based on the shipped orders.
3. Print and send invoices to customers.
9. Manage Receivables and Collections
Track receivables and manage collections.
Steps:
4. Navigate to Receivables responsibility.
1. Go to Receipts -> Receipts.
2. Record payments received from customers and apply them to the respective
invoices.
3. Manage dunning and collection processes for overdue invoices.
10. Post to General Ledger
Record the financial transactions in the General Ledger.
Steps:
4. Navigate to General Ledger responsibility.
1. Go to Journals -> Enter.
2. Post the transactions from subledger modules (Order Management, Receivables)
to the General Ledger.
Configuration Details and Additional Considerations
System Parameters in Order Management
 3. OM System Parameters: Set parameters like default currency, sales credit type,
and order numbering.
4. Transaction Types: Define different transaction types such as standard orders,
return orders, and internal orders.
5. Shipping Parameters: Configure shipping parameters including default shipping
methods and freight carriers.
Inventory Setup
 Sub inventories: Define sub inventories within inventory organizations to
manage stock locations.
 Stock Locators: Set up locators within sub inventories to track specific item
locations.
 Min-Max Planning: Configure min-max planning for inventory replenishment.
Pricing and Discounting
 Modifiers: Set up price modifiers for discounts, surcharges, and promotions.
 Agreements: Create customer-specific pricing agreements if needed.
Receivables Configuration
 Customer Profiles: Define customer profiles for credit management and payment
terms.
 Payment Methods: Set up different payment methods such as check, credit card,
and electronic funds transfer (EFT).
 AutoCash Rules: Configure AutoCash rules for automated application of
receipts.

*Invoice types(Receivable):

Invoices for receivables, which are bills issued by a business to its customers for goods or
services provided, can vary depending on the nature of the transaction and the industry. Here are
some common types:

1. Standard Invoice: This is the most basic type of invoice, including details such as the
seller's information, buyer's information, description of goods or services provided,
quantities, prices, total amount due, payment terms, and due date.
2. Recurring Invoice: Used for services or products that are billed on a regular basis, such
as monthly subscriptions or retainers. These invoices often include terms for automatic
billing.
3. Pro Forma Invoice: A preliminary bill of sale sent to buyers in advance of a shipment or
delivery of goods. It outlines the seller's commitment to deliver products or services at
specific prices but is not a demand for payment.
4. Commercial Invoice: Used for international trade, providing details about the
transaction including the goods being sold, their value, and other pertinent information
required for customs clearance.
5. Credit Memo or Credit Note: Issued by a seller to a buyer, indicating a reduction in the
amount owed by the buyer. This could be due to returns, discounts, or other adjustments.
6. Debit Memo or Debit Note: Similar to a credit memo but increases the amount owed by
the buyer. It might be issued for additional charges such as late fees, penalties, or
additional services provided.
7. Progress Invoice: Used for long-term projects or contracts, where payments are made in
stages as specific milestones are reached or portions of the work are completed.
8. Interim Invoice: Similar to progress invoices, interim invoices are issued during ongoing
projects but may not necessarily correspond to specific project milestones. They provide
a way for the seller to bill the buyer periodically for work completed to date.
9. Final Invoice: The last invoice issued in a series, usually following completion of a
project or delivery of goods. It summarizes all previous transactions and indicates the
final amount due.
10. Past Due Invoice: Sent to remind customers of unpaid balances that are overdue. These
invoices often include late payment penalties or interest charges.