Oracle E-Business Suite R12 Supply Chain Management - Siddiqui Muneeb A. - E-Book

Oracle E-Business Suite R12 Supply Chain Management E-Book

Siddiqui Muneeb A.

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Beschreibung

In Detail

Supply chain operations are turning increasingly global and complex, as companies aspire to support a variety of strategies, such as entering new markets and lowering costs. Oracle E-Business Supply Chain Management R12 provides comprehensive solutions to predict market requirements and align operations across global networks. However to implement these solutions, you need to gain a solid understanding of the various Oracle EBS modules used in supply chain processes.

Oracle E-Business Suite R12 Supply Chain Management will guide you to successfully configure and implement the various Oracle EBS modules for supply chain management. With this book in hand, you will be able to learn from scratch what Oracle EBS is and how it works in the supply chain management's domain. Backed by ample screenshots and clear explanation, the book will demonstrate the business flow of the entire application.

This book is an excellent learning resource for Oracle application supply chain modules. It begins by explaining the fundamentals of supply chain management and why it is necessary to use Oracle applications for supply chain management. If you have just begun using Oracle Applications, this book will give you a clear picture of the working and interface of Oracle E-Business Suite. It then progressively moves forward to demonstrate the step-by-step configuration of various Oracle EBS SCM modules.This book also covers all the transaction flows in detail, and shows how we carry out transactions in different modules. The chapters also explain the business and process flow of the modules that are configured.

By the end of this book, you will have learned to automate all your supply chain management processes thereby increasing profitability and customer satisfaction.

A hands-on training guide that empowers you to learn and configure Oracle E-Business Suite R12 SCM modules effectively and efficiently

Approach

This is a practical tutorial written in a clear and easy-to-understand style taking the reader through relevant, real-world examples that can be put into practice immediately. It contains detailed instructions and plenty of screenshots to make it easier for readers to understand Oracle E-Business Suite and work on it effectively.

Who this book is for

This book is aimed at all those who are working on Oracle E-Business Suite, such as administrators and consultants. End users who want to explore Oracle supply chain management will also find the book extremely useful. No prior knowledge of Oracle EBS SCM is required to get going with this book.

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Veröffentlichungsjahr: 2010

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Table of Contents

Oracle E-Business Suite R12 Supply Chain Management
Credits
About the Author
About the Reviewers
www.PacktPub.com
Support files, eBooks, discount offers and more
Why Subscribe?
Free Access for Packt account holders
Preface
What this book covers
What you need for this book
Who this book is for
Conventions
Reader feedback
Customer support
Errata
Piracy
Questions
1. Getting Started with Oracle Supply Chain Management
Supply Chain Management and Oracle E-Business Suite
Oracle E-Business Suite Supply Chain process flow
Oracle Procure to Pay process
Oracle Order to Cash process
Oracle Purchasing
Suppliers
Purchase requisition
Purchase order
Receiving goods and services
Oracle Inventory
Oracle Inventory process
Item
Transferring inventory
Issuance of inventory
On hand using material Workbench
Oracle Order Management
Oracle Order Management process
Customers
Sales order
Pick release
Ship confirm
Oracle Advanced Supply Chain Planning
Oracle Advanced Supply Chain Planning process
Collections
Plans
Oracle Cost Management
Oracle Cost Management Process
Oracle Cost Types
Closing Oracle Inventory Period
Oracle Landed Cost Management
Oracle Landed Cost Management process
Oracle Advance Pricing
Oracle Advance Pricing process for sales orders
Price list
Modifiers
Qualifier
Summary
2. Getting Started with Oracle E-Business Suite
Logging in to Oracle E-Business Suite
Responsibilities
Functions
Menu and toolbar
File menu
Edit menu
View menu
Tools menu
Shortcut keys
Forms
LOV (List of Value)
Checkbox
Open fields
Summary
3. Oracle Advanced Supply Chain Planning
The key functionalities of Oracle Advanced Supply Chain Planning
Design and architecture of Oracle Advanced Supply Chain Planning
Processing flow of Oracle Advanced Supply Chain Planning
Creation of a plan
Launching the newly created plan
Analysis and adjustments
Implementation of the analysis
Planning with Oracle ASCP in different business environments
Integration of Oracle Advanced Supply Chain Planning
Integration with Oracle Process Manufacturing
Integration with Oracle Project manufacturing
Integration with Oracle Demand Management
Hardware configuration for Oracle ASCP
Single machine implementation
Two machine implementation
Multi-machine implementation
Setup steps for configuring Advanced Supply Chain Planning
Setting up the Source Instance for Oracle Advance Supply Chain Planning (ASCP)
Creation of Oracle Advanced Supply Chain Planning responsibility
Profile options for Oracle ASCP
Create a planning flexfield request
Setting up the source data
Run the refresh snapshot concurrent program
Setting up the destination instance for Oracle ASCP
Patch the destination instance
Creation of a database link with the source instance
Enter instance information
Run the collection
Collections in Advance Supply Chain Planning
Application Data Store
Operation Data Store
The Collection process
Collection methods
Complete Refresh method
Targeted Refresh method
Net Change Refresh method
Types of collection process
Standard
Continuous
Creation of plans
Organization
Items
Bill of Material
Resource
Departments
Calendar
Types of plans in Oracle ASCP
Constrained plans
Unconstrained plans
Creating plans in Oracle ASCP
Main tab
Aggregation tab
Organizations tab
Constraints tab
Optimization tab
Launching the plan
Planner Workbench
Queries in Oracle ASCP
How a query works
Private queries
Public queries
Oracle Advanced Supply Chain Planning simulations and analysis
Net Change plan in Oracle ASCP
Batch mode planner
Online mode planner
Full re-plan simulation mode
The simulation process
Create a bookmark
Review the bookmark in the Undo Summary
Start the online planner
Add a new planned order
Batch re-run process
Stop the online planner
Comparison report
Oracle Advanced Supply Chain Planning exceptions
Planning exception sets
Key Performance Indicators
Summary
4. Overview of Oracle Order Management
The key functionalities of Oracle Order Management
Oracle Order Management process
Creating a sales order
Pick Release
Ship Confirm
Integration of Oracle Order Management with other modules
Setting up Oracle Order Management
System options
Profile options
Document sequence
Transaction type
Assigning workflow
Picking and shipping
Grant Users
Oracle Order Management end-to-end process
Enter Sales Order
Launch Pick Release
Ship Confirm
Summary
5. Overview of Oracle Purchasing
The key functionalities of Oracle Purchasing
Oracle Purchasing process
Requisition
Purchase requisition
Internal requisition
Request for Quotation (RFQ)
Quotations
Quote analysis
Purchase order
Receiving
Integration of Oracle Purchasing with other modules
Setting up Oracle Purchasing
Financial options
Purchasing options
Receiving options
Define supplier
Approval groups
Approval Assignment
Oracle Purchasing end-to-end process
Purchase requisition
Auto Create RFQ from purchase requisition
Quotation
Quote analysis
Purchase Order
Receiving of goods
Summary
6. Overview of Oracle Landed Cost Management
The key functionalities of Oracle LCM
Oracle Landed Cost Management process (pre-receiving application)
Creating a purchase order
Creating a shipment
Managing charges
Actual and estimated charges
Integration of Oracle LCM with other modules
Setting up Oracle LCM
Inventory organization parameter
Receiving option
Cost factor
LCM options
Oracle LCM end-to-end process
Entering purchase order
Creating shipment headers
Creating shipment lines
Managing charges
Validating and submitting charges
Entering receipt
Entering invoice into Oracle Payables
Summary
7. Overview of Oracle Inventory Management
The key functionalities of Oracle Inventory Management
Oracle Inventory Management process
Receipt
Inspection
Deliver
Returns
On-hand availability
Sub-inventory transfer
Inter-organization transfer
Move order
Integration of Oracle Inventory Management with other modules
Setting up Oracle Inventory Management
Key Flexfields
System Items Flexfield
Item Categories Flexfield
Stock Locators Flexfield
Organization calendar
Location
Inventory organization
Transaction types
Receiving parameter
Sub-inventory
Inventory accounting period
Oracle Inventory Management end-to-end process
Entering Receipts
Entering inspection
Delivering goods
On-hand availability
Move Orders
Miscellaneous transactions
Returns
Viewing material transactions
Item cost
Summary
8. Overview of Oracle Cost Management
The key functionalities of Oracle Cost Management
Oracle Cost Management process
Costing method
Average costing method
Moving average costing method
Periodic average costing method
Standard costing method
FIFO/LIFO costing method
Integration of Oracle Cost Management with other modules
Setting up Oracle Cost Management
Cost type
Material elements
Material sub-elements
Overhead sub-elements
Resource sub-elements
Costing methods
Transfer to GL
Sub-inventory accounts
Transactions in Oracle Cost Management
Inventory transaction in Cost Management
WIP transactions in Cost Management
Sub-Ledger Accounting
Cost Management accounting process using SLA
Summary
9. Overview of Oracle Advanced Pricing
The key functionalities of Oracle Advanced Pricing
Oracle Advanced Pricing process
Price list
Qualifier
Modifiers
Formulas
Integration of Oracle Advanced Pricing with other modules
Pricing concept of Oracle Advanced Pricing
Pricing rules
Pricing action
Pricing control
Price extensibility
Setting up Oracle Advanced Pricing
Profile options
Price Transaction Entity (PTE)
Qualifier
Pricing, product, and qualifier attributes
Unit of Measure (UOM)
Advanced Pricing lookups
Oracle Advanced Pricing in sales order entry process
Summary
10. Oracle E-Business Implementation at Sarmixa Telecom
The business structure of Sarmixa Telecom
Sarmixa Telecom line of business
S-VSAT
S-WiMAX
S-HFC
Oracle E-Business implementation using AIM
AIM Processes and Phases
Definition phase
Operation analysis phase
Solution design phase
Build phase
Transition phase
Production Phase
Oracle E-Business Suite implementation at Sarmixa Telecom
RD-10: Identify current financial and operating structure
Organization and legal entity structure
Business Organization Structure
BP-80: Future process model
BR-100: Document business procedures
Summary
Index

Oracle E-Business Suite R12 Supply Chain Management

Oracle E-Business Suite R12 Supply Chain Management

Copyright © 2010 Packt Publishing

All rights reserved. No part of this book may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, without the prior written permission of the publisher, except in the case of brief quotations embedded in critical articles or reviews.

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Cover Image by Sandeep Babu (<[email protected]>)

Credits

Author

Muneeb A. Siddiqui

Reviewers

Ciro Fiorillo

Yemi Onigbode

Acquisition Editor

Rashmi Phadnis

Development Editor

Wilson D’souza

Technical Editors

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Cover Work

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About the Author

Muneeb A. Siddiqui was born in Islamabad, Pakistan on 14th January, 1984. He graduated from Sir Syed University of Engineering & Technology in 2006 with a degree in Computer Science. He completed his Masters in Supply Chain Management and is a certified Oracle Professional. For several years Muneeb worked in Sui Southern Gas Company Limited (SSGC) and Client-Centric Consulting (Pvt) Ltd. He is currently working as a senior consultant at IBM, Pakistan. Muneeb has worked in the field of Supply Chain and Financials and is passionate about it. Muneeb has more than four years of experience in the field of Oracle Applications, Supply Chain, and Financial modules with the end-to-end cycle in Oracle Release 12 at leading telecom, oil and gas, and manufacturing organizations in Pakistan.

I sincerely thank my family who initially put forth the idea of writing this book. This book is a result of initiative and constant motivation. I received great inspiration and constant encouragement from my family.

This book is dedicated to my Mother to whom I owe so much

About the Reviewers

Ciro Fiorillo is an IT professional and consultant with experience of more than a decade in different roles (developer, analyst, DBA, project manager, data and software architect) with different software industries. He has worked on various technologies and architectures, such as Oracle, SQL Server, Delphi, C#, .NET Framework, C/C++, Java, PHP, COBOL, Fortran, and TIBCO.

He is based in Italy, near Naples, in the beautiful, and historic, Ercolano.

Ciro is currently employed as Lead Software and Data Architect with Finwin Srl, a software house specializing in banking and loan applications.

As a freelancer, he writes articles for websites and printed magazines about software and computing, participates in workshops, and teaches C++ and Fortran parallel programming with Intel Software tools.

Ciro can be reached at <[email protected]>.

Thanks to my wife, Monica. You support and encourage me in all my adventures, and drive our children Miriam and Mario in my place. They have the best mom, you have my unconditional love.

Yemi Onigbode has over a decade of experience in ERP systems development and maintenance. He has progressed from the early days of mainframe-based systems to the present day of web-based distributed systems.

Yemi is a hybrid techno-functional (Functional and Technical) independent Oracle consultant. He is a hands-on Project Manager, Business Architect, and Instructor, specializing mainly in Financials and Supply Chain models. He has assisted a number of businesses to find solutions to complex business issues using various technologies. Yemi is also a keen believer in self-development and research—he is at par with the current developments in the IT and communications industry. He is currently developing and implementing e-business solutions for large- and medium-sized companies, fully integrating their business applications with the Internet, and providing a totally integrated solution. He has been developing in Java since 1996 and implementing Oracle Applications since 1997.

Yemi is a Fellow of the Association of Chartered Certified Accountants. He has a Bachelor of Science (Honors) degree in Pure and Applied Mathematics. Yemi is also a technical writer on Accountancy and IT issues, presents at Accounting and IT seminars, and motivates and mentors young adults on career management and planning. In his spare time Yemi loves to write and is learning to play musical instruments.

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Preface

Supply chain operations are turning increasingly global and complex as companies aspire to support a variety of strategies, such as entering new markets and lowering costs. Oracle E-Business Supply Chain Management R12 provides comprehensive solutions to predict market requirements and align operations across global networks. However, to implement these solutions, you need to gain a solid understanding of the various Oracle EBS modules used in supply chain processes.

Oracle E-Business Suite R12 Supply Chain Management will guide you to successfully configure and implement the various Oracle EBS modules for supply chain management. With this book in hand, you will be able to learn from scratch what Oracle EBS is and how it works in the supply chain management's domain. Backed by ample screenshots and clear explanation, the book will demonstrate the business flow of the entire application.

This book is an excellent learning resource for Oracle application supply chain modules. It begins by explaining the fundamentals of supply chain management and why it is necessary to use Oracle applications for supply chain management. If you have just begun using Oracle applications, this book will give you a clear picture of the working and interface of Oracle E-Business Suite. It then progressively moves forward to demonstrate the step-by-step configuration of various Oracle EBS SCM modules. This book also covers all the transaction flows in detail, and shows how we carry out transactions in different modules. The chapters also explain the business and process flow of the modules that are configured.

What this book covers

In Chapter 1, Getting Started with Oracle Supply Chain Management, you will see the supply chain management process, the importance of supply chain management in today's business, and how Oracle E-Business Suite is designed to handle our business issues related to supply chain management. We also cover how different modules of Oracle E-Business Suite are integrated with each other to give the optimal supply chain management solution. You will learn about Procure to Pay and Order to Cash processes and be introduced to the modules that come under the umbrella of Oracle E-Business Suite supply chain management.

In Chapter 2, Getting Started with Oracle E-Business Suite, you will see how to navigate in Oracle E-Business Suite and get used to the look and feel of Oracle E-Business Suite. We also look at the concept of responsibility, menus, and functions in Oracle E-Business Suite. You will learn the shortcut keys that make the E-Business Suite operation easier along with the concept of lists of values, forms, and checkboxes. We will also see what different kinds of controls are available for us in the Oracle E-Business Suite.

In Chapter 3, Oracle Advanced Supply Chain Planning, you will understand the purpose of Oracle Advanced Supply Chain Planning (ASCP). You will also see how demand and supply are managed using Oracle ASCP and how to balance purchase, production, and sales using Oracle ASCP Suite. You will also see what is the logic behind the Oracle ASCP Planning Engine, how different types of Plans for production and distribution can be made in Oracle ASCP, and how they are managed using the Planner Workbench. You will also see the design and architecture of Oracle Advanced Supply Chain Planning. In this chapter you will see the end-to-end process of Oracle ASCP as well as take a look at the step-by-step setup of Oracle Advanced Supply Chain Planning.

In Chapter 4, Overview of Oracle Order Management, you will see how we can manage our sales using Oracle Order Management suite. You will also see how sales orders are managed and organized as well as how goods are picked from stores and dispatched. In this chapter, you will also see the end-to-end process flow of Oracle Order Management as well as integration of Oracle Order Management with other E-Business Suite modules. You will also look at the setup of Oracle Order Management suite.

Chapter 5, Overview of Oracle Purchasing, covers the concept of procurement in Oracle E-Business Suite and how purchasing documents are made and managed. In this chapter, you will also see the end-to-end process of Oracle Procurement as well as how to set up Oracle Purchasing suite. We will also discuss the integration of Oracle Procurement with different E-Business Suites.

Chapter 6, Overview of Oracle Landed Cost Management, looks at how Landed Cost is captured and managed in Oracle E-Business Suite as well as how charges like freight, transportation cost, port charges, and demurrage are managed in Oracle E-Business Suite. In this chapter, you will also see the integration of Oracle Landed Cost Management suite with other Oracle E-Business modules. Using an end-to-end process you will see how extra charges are calculated and managed in Oracle Landed Cost Management.

In Chapter 7, Overview of Oracle Inventory Management, you will see how to configure Oracle Inventory management and what role inventory management plays in the Procure to Pay and Order to Cash cycles. We will also look at how goods are received and issued using Oracle Inventory management, and how inventory controls like lots, locators, and sub-inventories are managed. In this chapter, you will also see how taking stock takes place in Oracle Inventory management. You will also see how to set up the Inventory Management suite and the end-to-end process flow of Inventory Management.

In Chapter 8, Overview of Oracle Cost Management, you will look at how different types of costing methods can be effectively utilized to value inventory. Oracle Cost Management is used to manage the perpetual and periodic costing for Inventory, WIP, Purchasing, and Order Management. You will also see how accounting entries are created and managed in Cost Management, and how they are eventually transferred to General Ledger.

In Chapter 9, Overview of Oracle Advanced Pricing, you will see how the Pricing Engine works for Oracle E-Business Suite, how we can cater for different scenarios of discounts and surcharges using Oracle Advanced Pricing, and how a price list for an item is created and how it affects the modules that are integrated and associated with Oracle Advanced Pricing. In this chapter, you will also see how qualifiers and modifiers are efficiently used to capture business scenarios as well as how to set up Oracle Advanced Pricing.

Chapter 10, Oracle E-Business Implementation at Sarmixa Telecom, covers how we can efficiently move Sarmixa Telecom's business processes over to Oracle E-Business Suite and how AIM is used in different phases of implementation. Sarmixa Telecom is a fictitious company and has been set up to become the leading service provider based on quality, reliability, and affordability in the communication and media sector.

What you need for this book

To verify the steps and procedures mentioned in the book, you will need an instance of Oracle Application Release 12 installed on your system.

Who this book is for

This book is aimed at Oracle E-Business Suite Administrators and Consultants. End users who want to explore Oracle supply chain management will also find the book extremely useful. No prior knowledge of Oracle EBS SCM is required to get going with this book.

Conventions

In this book, you will find a number of styles of text that distinguish between different kinds of information. Here are some examples of these styles, and an explanation of their meaning.

New terms and important words are shown in bold. Words that you see on the screen, in menus or dialog boxes for example, appear in the text like this: "Now we will move to the Aggregation tab, which holds the information related to plan date and bucket".

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Chapter 1. Getting Started with Oracle Supply Chain Management

Supply Chain Management (SCM) is a set of various activities in which raw materials are purchased and transformed into semi-finished or intermediate goods, which eventually become the finished goods. These finished goods are then distributed to the customer using the distribution channel. This complete cycle from supplier to customer is called the Supply Chain Management process.

As we can see in the Supply Chain Management process, all the activities are interconnected with each other. Therefore, for a smoother process flow, these activities should be clearly defined and all of them should have a proper Standard Operating Procedure, which ensures their smoother running.

Supply Chain Management is a set of activities through which we can arrange and integrate the stakeholders of the Supply Chain process, as follows:

SuppliersCustomersDistributerTransporterWarehouseProduction

Supply Chain activities are very important in any organization. However, at the same time, they are very hectic and time consuming as we have to keep a track of thousands of suppliers and customers. In the same manner our internal process of procurement, inventory, manufacturing, planning, scheduling, and distribution can also get very complex. It would be very difficult for us to manage these activities manually by using spreadsheets.

Oracle E-Business Suite gives us a complete solution to map our business process and performs different types of planning related to our business process and the management of our master data in the system, giving us a great ease of control over the process.

Supply Chain Management and Oracle E-Business Suite

Oracle E-Business Suite provides us with a number of application parts, also called modules that can be used to manage business processes and cater to complex scenarios that are encountered in the organization.

Oracle E-Business Suite offers the following modules for the Supply Chain process:

Oracle ProcurementOracle LogisticsOracle ManufacturingOracle Order ManagementOracle Marketing and Sales