OracleEBusinessSuiteFinancialsHandbookDavidJames SimonRussell
GrahamSeibert
OraclePress McGrawHill/Osborne
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AbouttheAuthors
DavidJamesisaninformationtechnologyconsultant.HespecializesinfinanceandtheOracleEBusinessSuiteandhas
implementedRelease11iinanumberofleadingcorporations.
SimonRussellhasworkedforOracleforthelastfouryearsasanApplicationstechnicalconsultant.Hespecializesin
solutionarchitectureandcustomization.Hehaspreviousexperienceasasystemsmanagerandbusinessanalyst.
GrahamSeibertisafinancialconsultantspecializingintheimplementationofOracleFinancials.Heistheauthorof
WorkingwithOracleDevelopmentToolsandOracleDataProcessing:AManager'sHandbook.
Acknowledgments
Writingabookhasnumerousrewards,thegreatestofwhicharethepeopleyoumeetalongtheway.Ithasbeena
pleasureworkingwithourpublishers,ScottRogers,JeremyJudson,JessicaWilson,AthenaHonore,andPamelaWoolf
atOraclePress.
Thiseditionhasbeenabroadercollaborationthanthefirst.WeareindebtedtoTonyCash,ofOracleCorporation,forso
muchofthecontentofChapter11OracleOrderManagement,andtoPaulDean,ofBraunConsulting,forChapter24
OracleFinancialAnalyzer.TheauthorsalsowishtothankPaulDean([email protected])whowithassistance
fromMarkHoferleandMarcusThompson,allfromBraunConsulting,Inc.(www.braunconsult.com),contributedthe
chapteronOracleFinancialAnalyzer.
WemuchappreciatetheassistanceofOracleCorporation,fortheircommentsandadviceonvarioustopics.Specifically,
JohnZerbel,LetaDavis,SriniSubramanian,KathleenHelbling,WilliamCurtis,MargaretWong,PaulBerman,Ruthann
Enthof,TerryWilliamson,PaulScott,KathrynWohnoutka,IngridVerbruggen,SaumyenduGhosh,SeamusMoran,Helen
Shanahan,anLoriBurke. DavidJames SimonRussell GrahamSeibert
ThanksfirsttoSimonRussellwho,byagreeingtocoauthorthesecondedition,broughttotheprojectuptodateRelease
11iknowledge,Oraclecentricexperienceandadeeptechnicalunderstanding.IamparticularlykeentothankDavidBrett
forhiscontributiontothefirstedition,whichthroughoversightwasnotacknowledgedatthetime.Davidproducedmanyof
thescriptsthatreappearinChapter23,"TipsandTricks."
IwasparticularlypleasedtogetfeedbackfromSeamusMoranandHelenShanahan,bothofOracle,oneuroaspects.
ThisyearhasbeenbusyforeveryoneinvolvedintheeuroandIwouldliketothankthembothfortakingthetimeand
troubletoprovideadetailedreview.
ThescopeoftheOracleSuiteissufficientlyvastthatnoonecanbeanexpertinallareas.Ihadn'tmyselfbeeninvolvedin
asupportcapacityforawhileandknewthatIneededfirsthandproblemsolvingexperiencetoprovidetipsforuseina
booksuchasthis.ThereforeIwasmostpleasedtobesentanarrayoftipsbyPramilaMane,whoiscurrentlyworkingfor
Oracleintheirsupportoperation.ThanksPramila. Iwouldespeciallyliketo
mentionthosewithwhomIhaveworkedoverthepastfewyears,mostrecentlyShaunBegley
andStuartWorthingtonatTiscaliinLondon.IntegratingadozenstartupstobuildEurope'slargestInternetservice
providerwasnevergoingtobeeasy.However,withShaun'sdrive,Stuart'spreeminenceintheDBAarena,severalother
likemindedindividuals,andacommonplatformbuiltonOracle,itis,atleast,goingtobepossible.
EarlierthisyearIhadthepleasuretoworkwithMIServices,aglobalconsultingfirmthatspecializesinOracleProcess
Manufacturing.TheycontinuetoapplyanextremelyhighstandardofOracleknowhowandoperateanononsense
approachtotheircommercialprojects.ForthisopportunityIthankEddyOsborne,DannyMcDermont,KevinSaunders,
andDaveMaughan.
MywarmthankstothepeopleImetatThorntonsPlc,inparticularSueEdwardsandMichelleEdgeontheITteam,Dan
ShipmanandKateBullinFinance,andPhilHickingwholedtheproject.AtUnitedAgriProductsinYorkshireourgolive
datecoincidedwiththeworstofthefootandmouthcrisisintheU.K.Myinvolvementwasshorttermandmuchofthework
hadbeencompletedbeforeme,neverthelessIshouldliketothankPaulaNewby,StephenHardy,andStephenNgfor
theirsupport.
AtEuropcarinParisIwouldliketothankPascalVallerent,BertrandDarrieus,PacoGranero,andMikeDavey.Theyhad
theforesighttoadoptaradicalstrategicapproachtotheeuro,andninemonthslatertheirchoicehasbeenprovena
success.AlanWalderandFranoisDuflotlaidthegroundworkatEuropcarandcontinuethesuccessatAccord.
IadmiretheabilityofDeirdreJoy,ValGay,PaulineLeech,ChrisRichmondandTrevorJonestograspthecomplexityof
projectsatConsignia.TheU.K.postalserviceisfortunatetohavesuchfocusedindividualsasitregeneratesitselfasa
customerfacingcommercialorganization.
InthelasttwoyearsIhavelearnedmostfromsomeonewhoseskillandexperiencegoesbeyondthenarrowconfinesof
OracleFinancials.GaryWoodshasbecomeagoodfriend.Hisdisciplinedapproachandprofessionalrigorhavesaved
thedayonmanyoccasions.IwouldliketothankalsoTimLiddell,workingatAccenture,forkeepingmeabreastof
commercialdevelopmentsintheERPworldoutsideofOracleandtomybrotherDorienJames,nowatCapitalOne,for
hisunfailingabilitytoprovideinformedinsightonallkindsofsubjects.
FinallythisbookisformyfamilyJane,Julia,VictoriaandTanya,AnneandDorienandBranwen.
DavidJames London October,2001
IhavefoundthatworkingforOracleyouareamongagroupofcharacterswhoareprofessionalbutfunandapproachable
withit.Theyarehappytosharetheirknowledgeandexperience.Thishelpsmakelightworkofeventhemostdemanding
projectsituations.IamthankfultomyOraclepracticemanagersovertheyears,mostparticularlyAndrewMoore,David
Cosh,andLizSinclairfortheiradviceandsupport.
Ihavebeenluckyenoughtoworkwithandbementoredbysomeexceptionalindividuals.JonLevyhasgivenmemany
opportunitiesandtheconfidencetotakethemGaryWoodsguidedthePostOfficePropertyHoldingsProjectastutelyand
successfullyMalveenMangatatRailtrackshowedhowmeticulousattentiontodetailsavestimeandassuresaresult
RamezYounanandSarahPenngavetheOracleFoundationteamsolidityanddependabilityJohnLongmanatJarvis
demonstratedthepowerofdisciplineandmethod.
Whenagroupofpeopleturnsintoateam,theworktheycancompleteisstaggering.TheinteractionbetweenOracle,
clientandpartnerorganizationsprovidesafertilegroundforlearningandIwouldliketothankallthosetoonumerousto
mentionherewithwhomIhaveworked.InparticularImustsingleoutthoseatJarvisfortheirpatience,asmyforayinto
writingcoincidedwithaverytightprojectschedule.Mydevelopmentteamtherewasamodelprofessionalunitwho
performedallthatwasaskedofthem.
Finally,thankstoDavidJamesforallowingmetojoininthefun(andmakingitso),GrahamSeibertforhavingdoneallthe
hardworkwellinthefirstedition,andtomyfamilyandfriendsforrememberingthatIamstillaliveeveniftheydon'tsee
me:Ihavereallyappreciatedyoubeingthereforme. SimonRussell London
October,2001
ThegreatestrewardtocomeoutofthefirsteditionofthisbookwasgettingtoknowDavidJames.Hissteadyhandand
goodhumourkeptthissecondeditiononcourse,inadditiontowhichhehadthewisdomtoaskSimontojoinus.
ThanksEdgarKline,withoutwhoseexcellentDBAsupportitwouldhavebeenimpossibletoimplementthesystems
describedhere,andtoDanHinkleandSteveO'HearnofMontreaConsulting.Itishardtosumupbuteasytoappreciate
allthatgoesintogoodmanagement.ThanksalsotoAndreaRosarioforherencouragementandsupport.
GrahamSeibert Bethesda,Maryland October,2001
TableofContentsOracleEBusinessSuiteFinancialsHandbook
....................................................................................................
1 Introduction
.............................................................................................................................................................21
Overview
...................................................................................................................................................................21
AboutThisBook
.......................................................................................................................................................22
NewinThisEdition...............................................................................................................................................22
WhoShouldReadThisBook?
............................................................................................................................22
OrganizationofThisBook
...................................................................................................................................22
TopicsthatAreNotCovered
...............................................................................................................................23
AboutOracleCorporation........................................................................................................................................23
TheOracleRDBMS..............................................................................................................................................24
TheOracleApplicationServer
............................................................................................................................25
OracleProgrammingTools..................................................................................................................................25
DataWarehouseDirections.................................................................................................................................26
TheFutureDirectionofOracleApplications
......................................................................................................26
ReasonsforChoosingOracleApplications........................................................................................................27
UseThisBookforaSuccessfulFinancialsImplementation.................................................................................28
EstablishaPlan
....................................................................................................................................................28
UnderstandtheCompany'sBusinessPractices................................................................................................28
UnderstandtheApplicationsSuite......................................................................................................................29
GettheNeededLevelofCommitmentfromUsers............................................................................................29
StafftheJobRight,andGiveItTime..................................................................................................................29
BePragmatic
........................................................................................................................................................30
HowtoGetMaximumValuefromtheApplications
...........................................................................................30
Conclusion
................................................................................................................................................................30
PartI:GettingStarted............................................................................................................................................30
ChapterList...............................................................................................................................................................31
Chapter1:AnOverviewoftheEBusinessSuite......................................................................................................31
Overview
...................................................................................................................................................................31
TheStructureandScopeoftheEBusinessSuite................................................................................................31
AccountingMethods.............................................................................................................................................34
OperationalControl
..............................................................................................................................................35
ThePackageFamilies..........................................................................................................................................35
TheBenefitsofImplementingOracleEBusinessSuite
.......................................................................................36
WhatAreYourObjectives?SettingParametersandExpectations
.....................................................................36
ReengineerNoworLater?................................................................................................................................36
Conclusion
................................................................................................................................................................37
Chapter2:ImplementingtheEBusinessSuiteEssentialConcepts
....................................................................37
Overview
...................................................................................................................................................................37
CapturingtheFinancialInformationRelevanttoYourBusiness..........................................................................37
Flexfields
...............................................................................................................................................................38
Workflow................................................................................................................................................................43
AccountingforTransactions
................................................................................................................................44
MeetingtheVariedNeedsofComplexOrganizations
..........................................................................................46
TheOrganizationalModelWithinOracleEBusinessSuite..............................................................................46
FinancialsintheGlobalBusinessesEnvironment
................................................................................................49
CreatingaModelofYourBusiness
....................................................................................................................49
GlobalFinancialApplications
..............................................................................................................................50
Conclusion
................................................................................................................................................................52
PartII:TheFinancialApplications......................................................................................................................52
ChapterList...............................................................................................................................................................52
Chapter3:OracleGeneralLedger
.............................................................................................................................52
Overview
...................................................................................................................................................................52
TheHeartofYourAccountingSystem
...................................................................................................................53
OverviewofGeneralLedger................................................................................................................................54
IntegrationwithOtherFinancialsModules
.........................................................................................................59
GeneralLedgerSetup..........................................................................................................................................68
AccountingFlexfieldDesignBestPractice..........................................................................................................73
WhattoConsider..................................................................................................................................................73
GoodDesignPrinciples
.......................................................................................................................................79
WhattoAvoid........................................................................................................................................................81
GeneralLedgerReporting
.......................................................................................................................................82
FinancialStatementGenerator
...........................................................................................................................82
OracleFinancialAnalyzer....................................................................................................................................87
TheApplicationsDesktopIntegrator(ADI).........................................................................................................88
OracleGeneralLedgerDataModel....................................................................................................................88
ConversionfromLegacySystems
......................................................................................................................90
Conclusion
................................................................................................................................................................92
Chapter4:BudgetingandAllocations........................................................................................................................93
Overview
...................................................................................................................................................................93
DifferencesBetweenFinancialandManagementAccounting.............................................................................93
TheLimitationsofFinancialAccounting.............................................................................................................93
DifferentTypesofReports...................................................................................................................................93
BridgingtheGap...................................................................................................................................................94
Budgeting
..................................................................................................................................................................94
TheBudgetingProcess........................................................................................................................................94
BudgetaryControlforNonprofitOrganizations..................................................................................................95
TypesofBudgets..................................................................................................................................................95
Allocations.................................................................................................................................................................96
AllocationFormulas..............................................................................................................................................97
AutoAllocationsWorkbench.................................................................................................................................98
Conclusion
................................................................................................................................................................98
Chapter5:OraclePayables
........................................................................................................................................98
Overview
...................................................................................................................................................................98
PurposesofaPayablesSystem
.............................................................................................................................99
InnovativeUsesofOraclePayables...................................................................................................................99
AnOverviewofPayablesinYourBusiness.........................................................................................................101
TimingYourLiability
...........................................................................................................................................101
ThePayablesWorkflow
.....................................................................................................................................102
ThePayablesCycle
...........................................................................................................................................103
SupplierData
......................................................................................................................................................109
AccountingMethods...........................................................................................................................................111
AccountingEntriesforPayablesTransactions
................................................................................................111
IntegrationwithOtherFinancialsModules
.......................................................................................................113
TheOraclePayablesDataModel
.....................................................................................................................115
Conclusion
..............................................................................................................................................................118
Chapter6:OracleReceivables
.................................................................................................................................119
OracleReceivablesandYourARBusinessProcesses......................................................................................119
iReceivables........................................................................................................................................................121
CreatingandManagingtheCustomerDatabase
................................................................................................121
CustomerProfiles
...............................................................................................................................................122
TheCustomerAccount
......................................................................................................................................123
BusinessPurposes.............................................................................................................................................124
Transactions
...........................................................................................................................................................124
Invoices
...............................................................................................................................................................124
TaxConsiderations
............................................................................................................................................125
AutomaticAccountGeneration..........................................................................................................................126
PrintingTransactions..........................................................................................................................................127
DebitMemos.......................................................................................................................................................128
CreditMemos......................................................................................................................................................128
Receipts...............................................................................................................................................................129
Adjustments
........................................................................................................................................................133
Commitments......................................................................................................................................................134
RefundstoCustomers
.......................................................................................................................................135
TransfertoDoubtfulDebt
..................................................................................................................................136
CustomerFollowUp
..............................................................................................................................................137
CustomerCalls
...................................................................................................................................................137
DunningLetters
..................................................................................................................................................137
Statements
..........................................................................................................................................................141
IntegrationwithOtherModules
.............................................................................................................................142
OrderManagement
............................................................................................................................................142
Projects................................................................................................................................................................143
Inventory..............................................................................................................................................................143
GeneralLedger...................................................................................................................................................143
ReceivablesOpenInterfaces
............................................................................................................................143
TheReceivablesDataModel
............................................................................................................................144
AdvancedFeatures
................................................................................................................................................147
TheCustomerAccountandBalanceDue........................................................................................................148
Reconciliation......................................................................................................................................................149
ThePurgeFeature
.............................................................................................................................................149
ReceivablesConversionIssues
........................................................................................................................150
Conclusion
..............................................................................................................................................................152
Chapter7:OracleCashManagement......................................................................................................................152
Overview
.................................................................................................................................................................152
TheNeedforCashManagement..........................................................................................................................153
BankReconciliation............................................................................................................................................154
BankStatementInterfaceCaseStudy
.............................................................................................................156
CashForecasting
...............................................................................................................................................161
CashManagementInterfaces
...............................................................................................................................163
TheReconciliationOpenInterface....................................................................................................................163
TheForecastingOpenInterface
.......................................................................................................................163
TheCashManagementDataModel.....................................................................................................................164
Conclusion
..............................................................................................................................................................164
Chapter8:OracleAssets
..........................................................................................................................................165
Overview
.................................................................................................................................................................165
RegisteringandTrackingAssets
..........................................................................................................................165
TheAssetAdditionsCycle.................................................................................................................................165
TaggingwithAssetIdentifiers
...........................................................................................................................166
TheAssetKeyFlexfield
.....................................................................................................................................167
TheLocationFlexfield
........................................................................................................................................167
TheCategoryFlexfield.......................................................................................................................................168
Depreciation............................................................................................................................................................169
LedgerAccounting..............................................................................................................................................169
BusinessTaxesandtheNeedforMultipleAssetBooks
................................................................................170
DepreciationMethods
........................................................................................................................................171
LeasedAssets
........................................................................................................................................................175
CapitalBudgeting
...................................................................................................................................................175
ConvertingtoOracleAssets..................................................................................................................................175
ConvertingTaxBooks........................................................................................................................................177
TradeoffsBetweenRecordkeepingandReporting
............................................................................................177
Conclusion
..............................................................................................................................................................178
Chapter9:OraclePurchasing...................................................................................................................................178
PurchasingOverview
.............................................................................................................................................178
Requisitions
............................................................................................................................................................179
Suppliers
.................................................................................................................................................................180
SupplierRelationships
.......................................................................................................................................180
CommunicatingwithSuppliers
..........................................................................................................................185
TheImplicationsofMultiOrg
................................................................................................................................187
MultipleOrganizationsinInventory...................................................................................................................187
Receiving
................................................................................................................................................................187
Exceptions...........................................................................................................................................................188
ReceiptRouting
..................................................................................................................................................188
DropShipmentReceipts....................................................................................................................................188
ProductivityversusSecurity
..............................................................................................................................189
PaymentonReceipt...........................................................................................................................................189
IntegrationwithOtherModules
.............................................................................................................................189
PayablesIntegration...........................................................................................................................................190
ProjectsIntegration
............................................................................................................................................190
OrderManagementIntegration
.........................................................................................................................191
InventoryIntegration...........................................................................................................................................191
AccountingIssues
..................................................................................................................................................191
AverageandStandardCosting
.........................................................................................................................191
AccrualAccounts................................................................................................................................................192
AutomaticAccountGeneration..........................................................................................................................192
Implementation
.......................................................................................................................................................193
ConvertingtheVendorMaster
..........................................................................................................................193
ConvertingTransactions....................................................................................................................................193
ConvertingPurchasingHistory..........................................................................................................................194
Testing.................................................................................................................................................................194
Customization
.....................................................................................................................................................195
Conclusion
..............................................................................................................................................................195
Chapter10:OracleInventory
....................................................................................................................................195
OverviewofInventory
............................................................................................................................................196
IntegrationwithOtherModules
.............................................................................................................................197
ItemSetup...............................................................................................................................................................197
ItemNumbers
.....................................................................................................................................................197
Attributes
.............................................................................................................................................................198
Revisions.............................................................................................................................................................203
BillsofMaterial
...................................................................................................................................................203
GroupingItems
.......................................................................................................................................................204
CategoriesandCategorySets
..........................................................................................................................204
Catalogs
..............................................................................................................................................................206
IssuesofVolume
................................................................................................................................................206
PhysicalStorageandManagement......................................................................................................................207
InventoryOrganizations
.....................................................................................................................................207
Subinventories
....................................................................................................................................................208
Locators...............................................................................................................................................................208
LotProcessing
....................................................................................................................................................209
SerialNumberProcessing
.................................................................................................................................209
Balances..............................................................................................................................................................210
Counting
..............................................................................................................................................................210
ForecastingandDemand
..................................................................................................................................214
IndustryEffortstoImproveStockMovement.......................................................................................................215
Kanban
................................................................................................................................................................216
WarehouseMovements
.....................................................................................................................................217
ConversionIssues..................................................................................................................................................217
ItemMasterConversion.....................................................................................................................................217
TransactionConversion
.....................................................................................................................................218
LocationConversion...........................................................................................................................................218
AccountingEntriesforInventoryTransactions
....................................................................................................220
AdditionalAccountingTransactions..................................................................................................................221
Variances
............................................................................................................................................................222
AverageversusStandardCosting
....................................................................................................................223
NonmaterialExpenseCollection
.......................................................................................................................223
SettingStandardCosts
......................................................................................................................................224
TheCostingTables
............................................................................................................................................226
DeterminingSalesPrices...................................................................................................................................228
ProjectManufacturing
........................................................................................................................................228
INTRASTATReporting.......................................................................................................................................228
ActivityBasedCosting
.......................................................................................................................................229
PlanningandDebuggingCostTransactions....................................................................................................229
OperationofOracleInventory
...............................................................................................................................230
Responsibilities...................................................................................................................................................230
InterfaceManagerProcessing
..........................................................................................................................230
ArchivingandDeletingData
..............................................................................................................................231
AdvantagesofanOpenDesign
............................................................................................................................231
Conclusion
..............................................................................................................................................................232
Chapter11:OracleOrderManagement...................................................................................................................232
Overview
.................................................................................................................................................................232
OMSetups
..............................................................................................................................................................234
DefaultingRules
.................................................................................................................................................234
FunctionalDifferences
.......................................................................................................................................234
AttributesandEntitiesinOrderManagement
..................................................................................................235
DependenciesAmongAttributes.......................................................................................................................235
SourcesofValues
..............................................................................................................................................235
ProcessingConstraints
......................................................................................................................................236
FunctionalDifferences
.......................................................................................................................................236
Migration/UpgradefromSecurityRules............................................................................................................237
WorkflowIntegration...........................................................................................................................................237
Migration/UpgradefromOrderTypes...............................................................................................................237
The11iCustomerModel
.......................................................................................................................................237
ASingleSourceofTruth....................................................................................................................................238
ThePartyConcept..............................................................................................................................................238
CustomerAgreements
.......................................................................................................................................240
SalesCredits.......................................................................................................................................................241[1]
UsingCreditCardsinOracleOrderManagement
............................................................................................241
RiskManagement...............................................................................................................................................242
OracleConfiguratorDeveloper
.............................................................................................................................242
ItemsinOrderManagement..............................................................................................................................244[2]
EnhancedScheduling
.........................................................................................................................................246
AvailabletoPromise
..........................................................................................................................................246
ShipmentScheduling
.........................................................................................................................................246
SpecificOrderTypes..............................................................................................................................................248
InternalSalesOrders
.........................................................................................................................................248
DropShipment....................................................................................................................................................248
ReturnMaterialAuthorizations(RMAs)
............................................................................................................249
OracleReleaseManagement................................................................................................................................250
DemandManagementFlow
..............................................................................................................................250
OracleShipping
......................................................................................................................................................251
PickRelease
.......................................................................................................................................................253
MoveOrders
.......................................................................................................................................................253
ShippingTolerances...........................................................................................................................................254
FreightCosts.......................................................................................................................................................254
ShippingExceptions...........................................................................................................................................255
EuropeanReporting
...........................................................................................................................................255
UPSIntegration
..................................................................................................................................................255
Containers...........................................................................................................................................................255
Pricing......................................................................................................................................................................256
OracleAdvancedPricing
...................................................................................................................................257
PriceListElements.............................................................................................................................................257
MaintainingPriceLists
.......................................................................................................................................258
GSAPricing.........................................................................................................................................................258
MulticurrencyPricing..........................................................................................................................................258
OMKeyFeatures
...................................................................................................................................................258
CrossReferences...............................................................................................................................................258
CustomerItems
..................................................................................................................................................259
DecimalQuantityOrdering
................................................................................................................................259
FolderenabledForms........................................................................................................................................259
AutomaticAttachments
......................................................................................................................................259
Notifications.........................................................................................................................................................259
ProcessMessages
.............................................................................................................................................259
MassChange/OtherFunctionality.....................................................................................................................260
IntegrationwithOrderCapture
..........................................................................................................................260
OrderPurge
........................................................................................................................................................260
Accounting
..............................................................................................................................................................260
IntegrationwithOtherModules
.............................................................................................................................261
IntegrationwithReceivables..............................................................................................................................261
IntegrationwithInventory...................................................................................................................................261
IntegrationwithPurchasing
...............................................................................................................................262
ConversionIssues..................................................................................................................................................262
OrderImport........................................................................................................................................................262
Responsibilities.......................................................................................................................................................262
Conclusion
..............................................................................................................................................................263
Chapter12:ForeignCurrencyOperations...............................................................................................................263
Overview
.................................................................................................................................................................263
MulticurrencyAccounting.......................................................................................................................................264
ForeignCurrencyTransactions.........................................................................................................................264
Revaluation
.........................................................................................................................................................265
Conversion
..........................................................................................................................................................265
BalanceTranslation............................................................................................................................................265
TheEuro..................................................................................................................................................................266
ReportinginMultipleCurrencies...........................................................................................................................267
MultipleReportingCurrencies(MRC)...............................................................................................................267
123EFC............................................................................................................................................................267
MRCandGLTranslationTheDifference
......................................................................................................268
MigrationtotheEuro..............................................................................................................................................268
AccountInquiryinEitherPrimaryorReportingCurrency
...............................................................................269
OneStepSubledgerProcessing.......................................................................................................................269
Conclusion
..............................................................................................................................................................269
Chapter13:OracleSelfServiceWebApplications.................................................................................................269
Overview
.................................................................................................................................................................269
Oracle'sVisionandDirection
................................................................................................................................270
OracleSelfServiceWebApplicationsArchitecture
............................................................................................270
InternetProcurement..........................................................................................................................................271
OracleSelfServiceTimeandSelfServiceExpenses
....................................................................................274
OracleiReceivables
...........................................................................................................................................275
ImplementationConsiderations.........................................................................................................................275
OtherSelfServiceWebApplications................................................................................................................276
Conclusion
..............................................................................................................................................................277
Chapter14:OracleProjects......................................................................................................................................277
Overview
.................................................................................................................................................................277
Setup
.......................................................................................................................................................................278
OrganizationSetup.............................................................................................................................................278
Costing
....................................................................................................................................................................283
Billing
.......................................................................................................................................................................286
IntercompanyProjects
...........................................................................................................................................288
InterprojectBilling
...............................................................................................................................................288
AutoAccounting
......................................................................................................................................................289
ProjectProcessingCycle.......................................................................................................................................291
Reporting.................................................................................................................................................................291
IntegrationwithOtherModules
.............................................................................................................................293
ClientExtensions....................................................................................................................................................298
DataConversion.....................................................................................................................................................299
Conclusion
..............................................................................................................................................................299
Chapter15:OracleWorkflowandtheImplementationWizard
..............................................................................300
Overview
.................................................................................................................................................................300
WorkflowArchitecture
............................................................................................................................................300
WorkflowUserClientTier
..................................................................................................................................300
ApplicationServerTier.......................................................................................................................................301
OracleServerTier
..............................................................................................................................................301
EmbeddedorStandalone
..................................................................................................................................303
UsingWorkflow...................................................................................................................................................303
PrebuiltWorkflows..............................................................................................................................................308
WizardOverview
....................................................................................................................................................308
WhyYouNeedaWizard....................................................................................................................................308
UsingtheImplementationWizard
.....................................................................................................................309
Conclusion
..............................................................................................................................................................309
Chapter16:NewApplicationsinRelease11i
.........................................................................................................310
Overview
.................................................................................................................................................................310
OraclePropertyManager
......................................................................................................................................310
AnOverviewofPropertyManagement.............................................................................................................310
IntegrationwithOtherApplications
...................................................................................................................315
OracleTreasury......................................................................................................................................................317
AnOverviewofTreasuryOperations................................................................................................................317
IntegrationwithOtherApplications
...................................................................................................................319
MarketDataFeed...............................................................................................................................................320
BusinessIntelligenceSystem................................................................................................................................320
Architecture.........................................................................................................................................................320
Conclusion
..............................................................................................................................................................323
PartIII:ManagingandCustomizinganApplicationsEnvironment............................................................323
ChapterList.............................................................................................................................................................324
Chapter17:TheOracleFinancialsEnvironment
....................................................................................................324
Overview
.................................................................................................................................................................324
OnlineOperations
..................................................................................................................................................325
QueryMode
........................................................................................................................................................325
DataentryMode.................................................................................................................................................326
Messages............................................................................................................................................................326
NavigationandSpecialFunctionsinForms.....................................................................................................327
DisplayFormats..................................................................................................................................................327
MultipleOpenWindows
.....................................................................................................................................328
BatchOperations....................................................................................................................................................329
TheConcurrentManager...................................................................................................................................329
ConcurrentProgramParameters......................................................................................................................331
RequestSets
......................................................................................................................................................332
PrintingandOtherMeansofOutput
.................................................................................................................332
Flexfields
.................................................................................................................................................................333
KeyFlexfields......................................................................................................................................................334
DescriptiveFlexfields
.........................................................................................................................................335
Contexts
..............................................................................................................................................................335
FlexfieldValidation
.............................................................................................................................................336
FlexfieldSecurity
................................................................................................................................................337
FlexfieldDefinition
..............................................................................................................................................337
NationalLanguageSupport(NLS)........................................................................................................................339
AOLlevelLanguageDetermination..................................................................................................................339
NationalLanguageSupportforReports...........................................................................................................339
NationalLanguageSupportforFlexfields
........................................................................................................340
NationalLanguageinData
................................................................................................................................340
Alerts
.......................................................................................................................................................................340
ApplicationManagement
.......................................................................................................................................341
UsersandResponsibilities
................................................................................................................................341
Security................................................................................................................................................................342
Instances
.............................................................................................................................................................343
FileStorage.........................................................................................................................................................345
QuickcodesandLookupTypes.........................................................................................................................346
ManagingtheApplicationsEnvironment..............................................................................................................347
MultipleEnvironmentsforDevelopment...........................................................................................................347
MultipleUseoftheApplicationsinProduction.................................................................................................348
MultiOrg..............................................................................................................................................................348
ProfileOptions
........................................................................................................................................................349
Oracle'sApplicationImplementationMethodology(AIM)
...................................................................................350
HardwareConsiderations
......................................................................................................................................350
Conclusion
..............................................................................................................................................................351
Chapter18:OracleApplicationsTechnicalArchitecture
........................................................................................351
Overview
.................................................................................................................................................................351
Release11iTheEBusinessSuite.....................................................................................................................352
ArchitectureComponents
......................................................................................................................................352
TheClientTier
....................................................................................................................................................353
TheApplicationsTier..........................................................................................................................................353
TheDatabaseTier..............................................................................................................................................354
CommunicationsforEachTypeofSession
.....................................................................................................355
MappingtheArchitecturetoHardware
.............................................................................................................355
DatabaseServerSizing:YourProcessor,Memory,andDiskSpace
............................................................356
WindowsandUNIXOperatingSystems...........................................................................................................358
BaseSoftwareandCommunicationTechnologies..............................................................................................361
TheTransitiontoGlobalInstallations
...................................................................................................................361
TimeZones
.........................................................................................................................................................362
SupportAdvancesandTools
................................................................................................................................362
PlatinumVersions...............................................................................................................................................362
OracleEnterpriseManager................................................................................................................................362
BackupsandCloningEnvironments.................................................................................................................363
Conclusion
..............................................................................................................................................................363
Chapter19:Security
..................................................................................................................................................363
Overview
.................................................................................................................................................................363
ArchitectureoftheFinancials................................................................................................................................364
TheUniverseofThreats
........................................................................................................................................367
UnauthorizedActivitybyAuthorizedUsersoftheApps..................................................................................367
UnauthorizedUsersoftheOracleApplications
...............................................................................................367
PhysicalSecurityThreats
..................................................................................................................................367
DamageCausedbyFraudulentUsers
.............................................................................................................368
ThreatsOutsideoftheOracleApplications......................................................................................................368
RDBMSLevelCompromise...............................................................................................................................369
DesktopLevelSecurityConsiderations............................................................................................................370
DevelopmentandProductionEnvironments....................................................................................................370
NetworkLevelCompromises.............................................................................................................................370
Countermeasures...................................................................................................................................................371
SecurityPolicyDefinition
...................................................................................................................................371
AccessControlPolicies
.....................................................................................................................................372
ControlofInternetAccess
.................................................................................................................................373
AnOverviewofPublicKeyCryptography
........................................................................................................373
ImplementationofPublicKeyCryptography....................................................................................................375
VirtualPrivateNetworks(VPNs)
.......................................................................................................................377
StrongAuthentication.........................................................................................................................................378
VirusThreats.......................................................................................................................................................378
HackerCountermeasures..................................................................................................................................378
Conclusion
..............................................................................................................................................................379
Chapter20:CustomizationandModification...........................................................................................................380
Overview
.................................................................................................................................................................380
AnticipatingandPlanningCustomizationsandModifications
............................................................................381
RisksandCostsinCustomization
....................................................................................................................381
TheFrameworkforModifications......................................................................................................................383
CustomOutput....................................................................................................................................................390
OverviewoftheOpenInterfaces.......................................................................................................................396
PopulatingtheOpenInterfaces.........................................................................................................................397
ScriptsforInsertingRowsintoStandardTables..............................................................................................399
UpdatingStandardTables
.................................................................................................................................402
UsingDescriptiveFlexfields
..............................................................................................................................403
CustomizingWorkflows......................................................................................................................................406
CustomForms
....................................................................................................................................................406
Messages............................................................................................................................................................407
PerformanceTuning...........................................................................................................................................408
TheAnalysisProcess
............................................................................................................................................410
UserReferenceManuals
...................................................................................................................................410
TechnicalReferenceManuals(TRMs)
.............................................................................................................410
ReadingCode.....................................................................................................................................................410
LaboratoryMethod
.............................................................................................................................................411
DetailedTableAnalysis
.....................................................................................................................................411
RegressionTesting
................................................................................................................................................413
UsingaRegressionTesterforMassUpdates
.................................................................................................414
DocumentControl
..................................................................................................................................................414
LogMaintenance
................................................................................................................................................414
ConfigurationManagement
...............................................................................................................................418
Conclusion
..............................................................................................................................................................419
Chapter21:ProjectOrganizationandManagement
.........................................................................................419
Overview
................................................................................................................................................................419
OracleSoftwareasaStepTowardCorporateMaturity
................................................................................420
SpreadsheetsversusProjectManagementSoftware.........................................................................................421
DevelopingtheProjectPlan...............................................................................................................................422
TheProjectBudget
..............................................................................................................................................424
TheProjectManagementHierarchy
.................................................................................................................425
TeamFormation
.....................................................................................................................................................426
FunctionalTeamLeads
.....................................................................................................................................427
DatabaseAdministrator
.....................................................................................................................................428
Programmers
......................................................................................................................................................428
SourcesofStaffing
..............................................................................................................................................429
StaffSize
................................................................................................................................................................430
TypesofContracts...............................................................................................................................................430
ProjectPhasing
....................................................................................................................................................431
ManagingYourRelationshipwithOracle
.............................................................................................................432
OracleReleasesandVersions..........................................................................................................................432
ResolvingErrors:iTARsandPatches
..............................................................................................................433
ManagingBugFixes...........................................................................................................................................434
ReferenceSourcesforOracleApplications
.........................................................................................................434
ApplicationsUserReferences
...........................................................................................................................435
AOLReferences
.................................................................................................................................................435
OnlineHelpWithintheApplications..................................................................................................................436
ApplicationsTechnicalReferences...................................................................................................................436
OracleToolsandRDBMSReferences.............................................................................................................436
ThirdpartyOracleReferences
..........................................................................................................................437
OperatingSystemReferences
..........................................................................................................................437
User'sGroupMaterials
......................................................................................................................................437
ManagingImplementationActivities
.....................................................................................................................437
TheSolutionDefinition.......................................................................................................................................438
WrittenBusinessProcedures
............................................................................................................................439
Testing.............................................................