Technical Terms in Oracle Apps explained through real time example Apps Story
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 prudhvi

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 prudhvi@erpschools.com
 

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In this article most of the Technical Terms in Oracle Apps are listed and explained through a real time example.

Story

The below example explains a few of the important terms and concepts used in the Oracle E-Business Suite. This would be a good starting point for the beginners to better understand the concepts behind Oracle Applications. 

Say Harry is the owner of a wholesale fruit shop. He buys various fruits like apples, oranges, mangos and grapes etc from farmers directly and sells them to retail shop owners and also to the direct customers. 

The farmers are referred to as VENDORS/SUPPLIERS in Oracle Applications. Harry keeps track of all his vendors’ information like addresses, bank account and the amount he owes to them for the fruits that he bought etc, in a book named PAYABLES.  

Harry gets an order from a retail shop owner of Fruit Mart, for a shipment of 11 bags of apples, 25 bags of oranges and 32 kgs of grapes. In Oracle Apps, bags and kgs are referred to as UOM (unit of measure), Fruit Mart is called CUSTOMER and the order is referred to as SALES ORDER. Harry maintains a book called ORDER MANAGEMENT where he writes down all the details of the SALES ORDERS that he gets from his customers.  

Say the fruits have been shipped to the customer Fruit Mart. Harry now sends him the details like cost of each bag/fruit, the total amount that the customer has to pay etc on a piece of paper which is called INVOICE / TRANSACTION. Once the INVOICE has been sent over, the customer then validates this against the actual quantity of fruits that he received and will process the payments accordingly. The invoice amount could be paid as a single amount or could be paid in installments. Harry’s customer, Fruit Mart pays him in installments (partial payments). So Harry has to make a note of the details like date received, amount received, amount remaining, amount received for what goods/shipments/invoice etc, when Harry receives the payments. This detail is called RECEIPT, which will be compared to the invoice by Harry to find how much Fruit Mart has paid to him and how much has to be paid yet. This information is maintained in a book named RECEIVABLES to keep track of all the customers, their addresses (to ship the items), what and how much he has shipped to his customers and the amount his customers owe him etc. 

Harry’s fruit business has begun to improve and has attracted more and more customers. As a result, Harry decided to buy a cold storage unit where he could stock more fruits. In Apps, this cold storage unit is known as WAREHOUSE and all the fruits are referred to as INVENTORY.  Due to increase in customers, Harry needs to hire more people to help him out in his business without any hiccups. These workers are called EMPLOYEES. At the end of every month, Harry pays the salary for all his employees through Checks. These checks are nothing but PAYROLL in Apps.  

At the end of every month, Harry prepares a balance sheet in a book called GENERAL LEDGER to determine how much profit/loss he got and keeps track of the money going out and going in.  

As the business grows, it becomes impossible to record everything on a paper. To make everybody’s life easier, we have very good tools in the market, which help the business men to keep track of everything. One such tool is Oracle E-Business Suite. 

Oracle Applications is not a single application, but is a collection of integrated applications. Each application is referred to as a module and has it own functionality trying to serve a business purpose.

Few of the modules are Purchasing, Accounts Payables, Accounts Receivables, Inventory, Order Management, Human Resources, General Ledger, Fixed Assets etc.

Here is a high level business use of various modules:

Oracle Purchasing handles all the requisitions and purchase orders to the vendors.

Oracle Accounts Payables handles all the payments to the vendors.

Oracle Inventory deals with the items you maintain in stock, warehouse etc.

Order Management helps you collect all the information that your customers order.

Oracle Receivables help you collect the money for the orders that are delivered to the customers.

Oracle Human Resources helps maintain the Employee information, helps run paychecks etc. 

Oracle General Ledger receives information from all the different transaction modules or sub ledgers and summarizes them in order to help you create profit and loss statements, reports for paying Taxes etc. For Example: when you pay your employees that payment is reported back to General Ledgers as cost i.e money going out, when you purchase inventory items and the information is transferred to GL as money going out, and so is the case when you pay your vendors. Similarly when you receive items into your inventory, it is transferred to GL as money coming in, when your customer sends payment, it is transferred to GL as money coming in. So all the different transaction modules report to GL (General Ledger) as either “money going in” or “money going out”, the net result will tell you if you are making a profit or loss.

All the equipment, shops, warehouses, computers can be termed as ASSETS and they are managed by Oracle Fixed Assets.

There is a lot more in Oracle applications. This is the very basic explanation just to give an idea of the flow in ERP for the beginners.

 
Terminology often used in Oracle Applications:

  1. Invoice
  2. Receipt
  3. Customer
  4. Vendor
  5. Buyer
  6. Supplier
  7. Purchase Order
  8. Requisition
  9. ACH: Account Clearance House
  10. Sales Order
  11. Pack Slip
  12. Pick Slip
  13. Drop Ship
  14. Back Order
  15. ASN: Advance Shipping Notice
  16. ASBN: Advance Shipping Billing Notice
  17. ATP: Available to Promise
  18. Lot/Serial Number
  19. DFF: Descriptive Flex Fields
  20. KFF: Key Flex Fields
  21. Value Sets
  22. Organization
  23. Business Unit
  24. Multi Org
  25. Folders
  26. WHO Columns
  27. Oracle Reports
  28. Oracle Form
  29. Workflow Builder
  30. Toad
  31. SQL Developer
  32. SQL Navigator
  33. Discoverer Reports
  34. XML/BI Publisher
  35. ADI: Application Desktop Integrator
  36. Winscp
  37. Putty

 

 

 

Saravanan

commented on 7/8/2009 2:15:53 AM

Hi, it is a nice document. Thanks for your upload

   

Venkat

commented on 10/26/2009 10:19:57 PM

Its very nice for starters to know apps terms. Thanks

   

mahendra

commented on 11/6/2009 5:30:27 AM

good

   

pallavi

commented on 11/27/2009 6:54:27 AM

Hi Prudhvi,

Thanks a tonne.Very helpful.Could you please help me learn some deapth knowledge on purchasing.

Thanks a tonne in advance

   

ram

commented on 2/1/2010 3:37:07 PM

wonderful doc

   

hi prudhvi

commented on 3/3/2010 12:44:08 PM

Hi Prudhvi,
please give me notes for forms,reports,interface,conversion.........please reply soonnnnn

   

fhariddin

commented on 3/4/2010 5:09:44 AM

ultimate

   

srinivasarao

commented on 4/12/2010 1:45:32 AM

Hi Prudhvi,

your are providing excellent explnations. Please provide the iProcurement documents.

Thanks,
Srini.

   

Srikanth

commented on 4/14/2010 9:21:19 AM

Hi Prudhvi,

Integration of all modules were expalined with crystal clear view.
It would be much help full if you explain these individual modules a bit more.

   

Vijay

commented on 4/22/2010 10:36:41 PM

Excellent Explanation. It is very helpful. Could you please post something related to organization structure in OPM and Discrete.

- Vijay.

   

Ashish Kumar Dey

commented on 4/24/2010 1:41:50 AM

Thanks for the excellent explanation.

   

HARINATH

commented on 4/26/2010 5:10:47 AM

HELLO SIR IT'S VERY GOOD TOPIC TO ME

   

Ravi

commented on 6/8/2010 11:47:26 PM

Hi Prudhvi,

Very well explained useful for beginners

Thansk,
Ravi

   

srilatha

commented on 6/15/2010 9:12:46 PM

Hi Prudhvi,
Very nice explaination and it is very helpful for beginners.
It would be much helpful if you explain individual modules a bit more.

   

BRAMHIREDDY

commented on 6/18/2010 12:41:40 AM

Hai Prudhvi
Thanks for sharing your views on oracle apps. It is very useful for me.

   

MAHESH BABU

commented on 7/12/2010 1:56:33 AM

hi Prudhvi
Thanks for uploading basics of Oracle Apps. Could you plz send me the basic jargons that are used in GL like code combinations, segments, flexifields, revenue account etc..

   

sunitha

commented on 7/13/2010 5:50:52 AM

Very nice document for beginners

   

Dheer

commented on 7/27/2010 10:40:50 PM

Keep it up the good work

   

Riyaz

commented on 7/29/2010 11:14:53 AM

Its an awesome and simple explaination...god bless the author

   

rafi syed

commented on 8/23/2010 12:04:58 AM

very nice document but you need to provide indepth concept.

   
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