Documentation of Oracle ERP

Setups and Transactions

Submitted By: KESAVAN.B

FocusR Consultancy and Technologies Private Limited
Harakara Tower, III Floor, Subramania Nagar 1st Gate, Junction Main
road, Salem, 636005,
Phone: +91 6379503621
Web site: www.focusrtech.com
 Table of Contents
1.Introduction of ERP................................................................................................................................1
2.Supply Chain Management....................................................................................................................2
3.INVENTORY...........................................................................................................................................3
4.Fundamentals of ERP.............................................................................................................................4
1. Procure to Pay Process...................................................................................................................................4
2. Order to Cash Process.....................................................................................................................................5
5.Terminologies of Oracle ERP..................................................................................................................6
6.Architecture of Oracle ERP.....................................................................................................................7
7.Enterprise Basic Setups..........................................................................................................................8
1.User Creation..................................................................................................................................................8
2.Responsibility Creation....................................................................................................................................8
8.Enterprise Structure.............................................................................................................................10
1.Flexfield Creation..........................................................................................................................................10
2.Profile Setup.................................................................................................................................................11
3.Business Group Creation...............................................................................................................................13
1. Business Group Location...................................................................................................................................................13
2.Business Group Creation....................................................................................................................................................13
3. Profile Setup – Business Group.........................................................................................................................................14

4. Accounting Setups........................................................................................................................................14
1. Period types and Accounting Calendar............................................................................................................................15
2.Accounting Flexfield and Valuesets values.........................................................................................................................16
3. Workday Calendar.............................................................................................................................................................17
4. Genral Ledger and Legal Entity creation...........................................................................................................................18
5. Profile Setup for Genral Ledger and Operating unit..........................................................................................................20
6.Replicate Seed Data...........................................................................................................................................................20

5. Inventory Setups..........................................................................................................................................21
1.Creation of IMO................................................................................................................................................................. 21
2.Creation of Rate Cost Types...............................................................................................................................................21
3.Inventory Creation.............................................................................................................................................................22
4. Subinventory Creation......................................................................................................................................................23

9.Item Setups..........................................................................................................................................24
1.Item Creation................................................................................................................................................24
2.Item Attributes and Status Controls...............................................................................................................25
3.Item Categories.............................................................................................................................................26
4.Unit of Measure............................................................................................................................................29
10. Item Controls....................................................................................................................................33
 1. Serial Control................................................................................................................................................33
2.Lot Control....................................................................................................................................................36
3.Revision Control............................................................................................................................................37
4.Locator Control..............................................................................................................................................39
11.Inventory Transaction........................................................................................................................40
1. Miscelleanous Transaction............................................................................................................................40
2. Subinventory Transfer...................................................................................................................................43
3.Move Order Transaction................................................................................................................................44
12. Physical Inventory.............................................................................................................................48
 1.Introduction of ERP

 ERP stands for Enterprise Resource Planning.

 ERP is software used to manage the different functional areas of the
organization into a single solution.
 ERP helps to run the organization’s activities most efficiently
 Some famous ERP software vendors are SAP, Oracle, and Ramco.

The above figure shows that the different modules of ERP in an organisation

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 2.Supply Chain Management

 Supply Chain Management is a flow of raw materials or finished goods

where purchasing raw materials from suppliers and processing to
finished goods by manufacturing and delivering finished goods to the
customer.
 This whole process management is called Supply Chain Management
 The Main modules of Supply Chain Management are Inventory,
Purchasing, Order Management.

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 3.INVENTORY

 Inventory is the most important Physical entity of an organisation. It is the

place where we store and transact the items.
 In ERP inventory module is integrated into all modules.
 Here we define items and control the attributes of items.
 Items are created using Item Master Organisation

Transactions in Inventory
 Miscelleanous Transactions
 Subinventory Transfer
 Move Order Transfer

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 4.Fundamentals of ERP

1. Procure to Pay Process

 Procure to Pay is the Process of procuring (Purchasing) raw materials from

the supplier and paying for the procured material to the supplier.

 In this process, Respective Superuser will create a purchase requisition for

the demanded material including details of the supplier, quantity and the
material.
 Superusers request a quotation based on the Purchase requisition from the
suppliers.
 The supplier will be sent a quotation.
 Based on the analysis of the quotation superuser will select the best
quotation and a purchase order will be created and sent to the supplier
 After receiving materials receipt will be taken after inspection of materials
and payment will be paid by account payable department.

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2. Order to Cash Process
Order to Cash (O2C) is the process of fulfilling the customer’s order.

Entering the order

Booking the order

Picking the ordered goods to Staging sub inventory

Shipping of the order to the customer

Invoice Generation

Account Receivable

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 5.Terminologies of Oracle ERP

Master Data:
Master data are the essential core data used to run the operations of the business.
Some master data in ERP are
1. Items
2. Customers
3. Suppliers.

Documents
Document is the medium to transfer the data between systems. Some documents
are
1. Purchase requisition
2. Purchase Order
3. Sales Invoice

Transactions
Transactions are the process of transfer of raw materials or finished
goods to the supplier or customer or internal movement of goods.
 Inventory transaction
 PO receipt
 Sales Order issue

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 6.Architecture of Oracle ERP

 Latest Version of Oracle ERP is R12.

 Oracle ERP has three layers of application.
1.Client
2.Application
3.Database
 Oracle serves us in many platforms like Oracle Fusion cloud which is developed and
maintained at the cloud level.
 Oracle Fusion are also provide us unified management of all business and also for
analytics.

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 7.Enterprise Basic Setups
1.User Creation

System Administrator->Security->User->Define

2.Responsibility Creation
Responsibility is the authority assigning to the user with the application of the enterprise.
Each Application has a respective responsibility user can create responsibility with
respective menu and function and data groups.
Responsibility is a collection of menu and function based on the user.
Every Responsibility has a different menu based on the application. These menu and
responsibility can be created for specific user with known usabilitiy of user.
Data Groups is a list of oracle application and the oracle username assigned to each
application.
Request Group
When Responsibility creation it is mandatory and important to assign the menu and data
groups and request group for the application.

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System Administrator->Security->Responsibility ->Define

As above picture Create responsibility for all modules as follows

Responsibility name Application Menu Request Group
Toyota Cost Management - Cost Management and Subledger
SLA Bills of Material Accounting Cost Management - SLA
Toyota General Ledger GL Concurrent Program
Super User General Ledger GL_SUPERUSER Group
Toyota Inventory
Superuser Inventory Inv_Navigate All Inclusive
Toyota Purchasing
Superuser Purchasing PO_Superuser_GUI_India All Reports
Toyota Order Order OM Concurrent
Management Superuser Management ONT_Super India Programs
Toyota System System System Administrator
Administrator Administration Navigator Menu-GUI Reports
Toyota Human Resources Human
Superuser Resources GLB HR Navigator

Creating all the Responsibilities. Attach all the Responsibilities to the corresponding User.

8.Enterprise Structure

Toyota_Business Group
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 Genral Ledger Legal Entity
Toyota_GL Toyota_Legal Entity

Operating Unit
Toyota Innova Unit

IMO
Toyota_IMO

Toyota Innova INV1

Subinventories
Toyota RM Toyota FG Toyota STG

1.Flexfield Creation
Flexfield is a collection of segments used to store the values.
Segements are validated using the values of value sets. For creating flexfield you should
attach the valuesets and also create the values for the respective flexfields.
Each application has different types of flexfields,There are two types of flexfield
1. Key Flexfield
Keyflexfield is the set of segment used to store the accounts, part numbers with multiple
segments.
2. Descriptive Flexfield
Descriptive Flexfield is also a segment used to the addition information of any Items
or any values.
After creating the flexfield it is mandatory to enable Freeze checkbox so It will compile
successfully,

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Toyota System Administrator->Application->Flexfield->Segments

Flexfield title Flexfield Creation

%Grade% Toyota Grade FF
%People% Group% Toyota_People _Group_FF
%Job% Toyota Job FF
%Position% Toyota Position FF
%Cost% Allocation% Toyota Cost Allocation FF
%Competence% Toyota Competence FF

Create all the mandatory flexfield as given above .

2.Profile Setup
A profile is a set of changeable options that affect the way your application looks and
behaves.
It is important to setup BG profile for HR%SEC% and Mo%Sec% and also HR user type as
HR user before BG creation otherwise we will face an error like below picture.

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 Toyota
Enter HR%User%ty% at Profile Option for all responsibility

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3.Business Group Creation
1. Business Group Location
Toyota Inventory->Setup->Organisation->Location

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2.Business Group Creation
Toyota Inventory->Setup->Organisation->Organisation

3. Profile Setup – Business Group

Toyota System Responsibility->Profile->System
Attach thw Created BG for HR Security Profile and MO security Profile for all
Responsibilities

Use key words: HR%Sec% and MO%sec%

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4. Accounting Setups
Accounting setup in oracle is based on 4cs they are
1. Currency
Currency is defined for the costing purposes of item. It is define for corresponding country
with corresponding currency for managing accounts with legal entities.
2. Chart of Accounts
Chart of Accounts is flexfield used to stored number of segments which is used to store the
transaction data. For Accounting setup COA should be defined with values of valuesets.
3. Calendar
Calendar is defined for the record the financial transactions between the dates.
In general financial period starts form April and ends at March At last month ( march)
We define additional of march month of adjustment of periods.
4. Convention
Accounting convention is the rules employed how to record specific transactions as
accounting standard.
1. Period types and Accounting Calendar
Genral Ledger->Financials->Calendars->Types

Accounting Calendar
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Genral Ledger->Financials->Calendars->Accounting Calendar

After creating the calendar validate the calendar and check the concurrent program for
success.

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2.Accounting Flexfield and Valuesets values.
Toyota System Administrator->Application->Flexfield->Segments

 For Company Segment select qualifiers as Balancing segment.

 For Accounts Segment select qualifiers as Natural Account and select standard
Valueset as Force Natural Account Value set.
Values for valuesets
System Administrator->Application->Key->Values
Create values for Accounting Flexfield valuesets as given below

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3. Workday Calendar
Workday calendar is defined for the tracking working time, date and also shift with timing ,
Here Workday patterns and shifts are mandatory to define the calendar.
 Inventory->Setup->Organisation->Calendars
 Define the Calendar, shift, and workday patterns
 Build the Workday calendar.

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4. Genral Ledger and Legal Entity creation

Legal Entity
Legal entity is a entity which is based on countrys own legislation with tax and rights.
Genral Ledger
Genral Ledger is set of numbered accounts used to track and maintain the financial
transaction of business unit.
For Accounting setups we need to attach the 4cs
Genral Ledger->Setup->Accounting setup Manager-> Accounting setups
Create Legal Entity

After creating the Legal entity and Define the Genral Ledger

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Update the 4cs Currency, Conversion, COA, Calendar in Genral Ledger and
create the operating unit update and complete the process.
5. Profile Setup for Genral Ledger and Operating unit
Enter GL%name% and MO%Ope% for Profile option for all responsibility

6.Replicate Seed Data

After Defining the Accounting Setups and run a concurrent program Replicate seed Data.
The purpose of Replicate seed data is to copying the data of the module to the Operating
unit
View->Requests->Submit a New Request Enter the operating unit at Parameters.

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5. Inventory Setups
Inventory is the physical entity of an organisation. It is most important module for all type of
organisation. Inventory has division of Subinventories and stock locator
1.Creation of IMO
IMO(Item Master Organisation) is virtual entity where we create items and assigning its
control attributes.

Toyota Inventory->Setup->Organisation->Organisation for IMO

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2.Creation of Rate Cost Types
 Rate cost types is a costing type that we assign to our organisation.
 Costing is the process of calculating and allocating a value to the inventory items.
 They are four types They are
1. Standard
2. Average
3. FIFO
Here commonly used types are Standard and Average
Inventory->Setup->Costs->Cost types

3.Inventory Creation
Toyota Inventory Superuser->Setup->Costs->Cost types

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Use Copy Organisation from Tools for quick creation of Inventory as below.

The fields will automatically updated as copied Organisation

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4. Subinventory Creation
Toyota inventory->Setup->Organisation->Organisation->Subinventories
Select the Respective Inventory and create the subinventory as follows

9.Item Setups
1.Item Creation
Item creation is the importand setup for any type of transaction in a
Select the respective IMO
Toyota Inventory->Items->Master Items

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For Creation of Item, we need to Enable necessary attributes in 14 tabs in the
form.
To ease the process oracle enable us to attach the template which is already inbuild with
selection of attributes for the organisation items like Purchased item, Finished good item etc.
Use Template option from Copy from for Quick selection of Attributes
Select the suitable template for the item.

2.Item Attributes and Status Controls

Inventory Superuser->Setup->Item->Attribute Controls
Item Attributes are the information about the item

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Attributes are controlled at two levels 1. Master level 2. Organisation level

Item Status Controls

Inventory Superuser->setup->Items->Status Codes

3.Item Categories
Item categories are used to provide the additional control functions for the items.
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Here we can divide the items in different categories based on the organisation
purpose,

Define Flexfield,Valuesets, values for the Item Categories

Define values for the valuesets

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Define Item Category Codes
Inventory superuser->Setup->Items->Categories-> Category Codes

Define Item Category Sets

Inventory superuser->Setup->Items->Categories-> Category Sets

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Assigning Item Category to the Item

4.Unit of Measure
 Unit of measure is used to express the quantities of items..
 It has two types of units of measure
 Primary unit
 Secondary unit
 With these two units we can track the quantities of item effectively using both
quantity.
 Conversion is process of converting one unit of measure to another .
 There are two types of conversion
 Intra Conversion
o Intra conversion is used to convert quantities between same class unit
o Eg :1kg of bolt contains 1000grams of bolt
 Inter Conversion
o Inter Conversion is used to convert quantities between different Class unit
o Eg: 1kg of bolt contains 70 each bolts.
 It is required to set both primary and secondary unit of measure at attribute control for
tracking

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Inventory Superuser ->Setup->Items->Unit of measure->ConversionsInter Conversion is

used to convert quantities between different Class unit

We can check how the quantity of item is calculated by Doing a miscelleanous transaction
and check on hand quantity and its unit

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Miscelleanous Transaction
 It is one of the tranasaction method to increase or decrease the quantities of an item
with the reference number and it is genrally done by the financial department.
 Miscelleanous Receipt – To increase the quantity
 Miscelleanous Issue - To decrease the quantity.
 Before Transaction, we need to open inventory accounting period.
For opening Inventory accounting period
Inventory superuser->Accounting close cycle->Inventory Accounting periods

Miscelleanous Transaction
Inventory superuser->Transaction->Miscelleanous Transaction
Select Miscelleanous Receipt to increase the quantity of item

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 In

the above diagram we can see the item is expressed in the two Unit of Measure as we
defined.
For checking the quantity of an item
On Hand Availability
 Inventory Superuser->On Hand Availability->On Hand quanity
 This menu helps to check the quantity of item in detail in any subinventory.

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 10. Item Controls

 Oracle enable us to control and track items specifically using item controls. Based on
storage and identification of item. There are four types of controls as given below
1. Serial Control
 Serial control is type of controlling the items using a unique identification number ie.
Serial number for a organisation item. Example : Laptop, Electronic device etc
 Each item has a unique number to track and control the status of an item
 Based on the Organisation we want to create prefix and number for serial number
Ensure that item has serial control attribute and also check the organisation inventory
information for enabling serial control. Give suitable prefix and serial starting number,

Select
the respective item for which you assign the control give starting at prefix and starting
number at org level.

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 For
Genrating the serial number for quantities we have to run the concurrent program with the
parameters as given below

Serial number for entered quantity for an item will be allocated. Let us do an Miscelleanous
transaction and see how it is allocated on hand quantity.
By doing Miscelleanous receipt to increase the quantity the serial number will be allocated
for the increased quantity. We can also enter the starting serial number at any number from
here.

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We can see unique serial number allocation for each item we have create by misc.receipt
Inventory-On hand Availability->On hand quantity

Using On Hand quantity menu we can check the quantity of item in detailed way.

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2.Lot Control
 Lot is group of items into a single group. Here Lot Control is controlling of multiple
item in a single each lot. Like Serial control we have to create the lot starting prefix
and number. For example FMCG items like Biscuits, Soap etc.
We have to check the item attribute and org parameter for enabling the Lot control
parameters.

We can check the allocation of Lot for item by increase the quantity using misc.receipt
we want to enter the lot quantity size so that each lot can be have different quantities.

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Inventory superuser->On hand availability->Lots
We can check the lot control of item using the Lots menu as show below

3.Revision Control.
Revision control is an type of controlling a item which we can revised an item into new
design. To control this type of item we use Revision Control. We can use n number of
revisions for an item. As well Enable the revision control for an item at org level.

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Switch to the Revision tab

Based on the Items we can define the n number of revision.

We can increase the quantity of item of any revision we defined using miscelleanous receipt.

We can see the on hand quantity of both revision A and B which we transacted using
miscelleanous receipt

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4.Locator Control
 This type of control control the item precisely. It is a further division of subinventory in
a organisation structure.In a subinventory there is location like Rack, Row and Bin. Item
assign to this control are allocated to several row rack bin. Item are also easily trackable
using this control.
 Ensure the item org attribute and org parameters locator have enabled .
 We can create new subinventory for locator control and assign the locator row rack bin to
it
 Inventory superuser->Setup->Organisation->Subinventories

we can do a miscellaneous transaction and see how locator allocates the item.

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We can check the status of locator control item using on hand quantity. In
below locator Rack001 Row001 Bin001 has a quanitity of 50 which we added using

misc.receipt.

11.Inventory Transaction

Transaction in inventory is a movement of goods (raw material, finished goods etc) from one
place to another or subinventory or inventory with or without reference number.
There are different transaction as given below
1. Miscelleanous Transaction
Miscelleanous Transaction is process to increase or decrease the onhand quantity without the
reference number. This transaction normally done by the finance authorized user (Or) By the
Inventory Super user after getting approval from Finance head.
It has two type of transaction
1. Miscelleanous Receipt
 This transaction is performed to increase the On-hand Qty of any material / materials
in a sub-inventory.
 This type of transaction is generally done for adjusting the inventory items where was
mistaken done.

Inventory user->Transaction->Miscelleanous Transaction

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2. Miscelleanous Issue
This transaction is performed to decrease the On-hand Qty of any material in a sub-
inventory.
This also involves steps same as miscelleanous receipt

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For doing a miscelleanous transaction we want to enter account value 7740

We can view the details of transaction using material transaction menu

Inventory superuser->Transaction->Material Transaction
.

We can see the details

of any transaction
using any sorting
type as given below

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2. Subinventory Transfer
 This transaction helps to transfer materials from One Subinventory to another sub-
inventory without any reference number.
 This transaction normally done by inventory super users to manage the items/materials
inside the inventory/stock locators. ( For Space Contrainsts / Temporary Movement )

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We able to transfer one subinventory to another as shown above we can check
the transaction using transaction summaries
.

In above transaction quantity in qc subinventoroy got negative and quantity in RM

subinventory get positive because item transferred from subinv qc to RM subinventory.
3.Move Order Transaction
Move order is transfer of items from one subinventory to another subinventory with a
reference number generated by a system. It can be classify as Move order transfer and Move
order Issue.
1. Move order Transfer
This transaction helps to transfer materials from One Subinventory to another sub-inventory
with a reference / transaction number generated from the system.
Inventory superuser->Moveorder->Moveorder transfer
This transaction has two process requisition part and approval part

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It is process of requisition given below

 For this transfer we want to enter source subinventory from which subinventory item
have to be transfer and destination subinventory where to be transacted.
 In requisition a subinventory meant to request for demanding item.
 Entering the details Approve the requisition and check the status for Approved
 In real time application different users both perfom the both approve and transaction.
 Here we can see how to transact the order.

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Transact the order with the help of number generated.

 We can see the transaction details below screenshot

 From the source subinventory on hand quantity got negative from that we can understand
destination subinventory have received the quantity from that source.

2.Move Order Issue

 Move Order Issue transaction is performed to decrease the on hand stock of an item /
material from any subinventory with account issuance.
 Move order issue transaction also has reference /transaction number. Eg: Damage or any
waste to scrap account done by this transaction.
 For this transaction we will give account instead of destination subinventory.

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 In the below picture as this serial control item we have also to include the
number of item specifically and same as we done in move order transfer we want to
allocate and transfer the item.
 Select transaction type as move order issue

Allocate and transact the order by querying number at transact move order

We can see the transaction details using material transaction menu as seen below

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 12. Physical Inventory

 Physical inventory is a actual count of goods in a inventory that an superusers count.

 It can ensure the inventory tally of items match to the ERP. It is also mandated by the
financial accounting to value the cost of items in a inventory,
 Every 3 to 4 months of fiscal year this process done to manage the inventory items
tally
 Every organisations wants to achieve less mismatch item in a physical inventory
 Before physical inventory an organisation need to freeze the all transactions process
Involved by the item.
On hand Availability
 Check the Onhand availability of respected subinventory that wants to count.

Physical inventory
 Here we need to define our physical inventory and attach the subinventory which we
need to done Counting.

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  Before counting we need to freeze the subinventory to avoid transaction
between counting
 After creating physical inventory, we need to freeze the subinventory using Snapshot.
 We can count all subinventory or also we can count the specific subinventory
 Concurrent program will run to the freeze the subinventory
Inventory superuser->counting->physical inventory->Physical inventory

Check the concurrent runs Normal

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Generating Tag
Tag are the labels used as identification number to make the counting easier.
There are types of Tag like Blank Tags and Default tags
Blank Tags
Blank tags are the identifier of item which contains no information about an item
Default Tags
Generating default tags contains the item information about sub inventory, lot, revision,
locator exists in the sub inventory which selected for physical inventory.
Query the physical inventory and click on tags
Select the default tag for detail item information which in physical inventory
Enter the starting tag then system will generate the ending tag and total number of tags and
then click generate.

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Concurrent program will be run for generating tag

After generating tag we need to take report of this tag information by clicking
Tools->Copy file
This report will handled to the inventory users who perform count for checking the matching
status of item.

After handling the report to the inventory user they will check the quantity of each item in a
subinventory and record in the tag count
Inventory superuser->Physical inventory->Tag count

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We want to enter the actual count of quantity present in the physical quantity

After entering the original amount of inventory saving it.

if we needed, we can make adjustment to the quantity which showing some deviation by
genrating a adjustment report
Run a concurrent program of Physical inventory adjustment report
Enter the parameters of physical inventory name.

Run the program successfully and generate the report of adjustment of quantity needed to
match the inventory.
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As we doing the transaction of item increasing and decreasing a approver wants to approve
these type of adjustment done in organisation
So we need to create the employee and attach to the user
HRMS responsibility-> people ->Enter and maintain

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Attach the created employee to the user

Approve Adjustment
Inventory user->physical inventory->Approve adjustment
By using the adjustment report generated we can adjust the mismatch by entering adjustment
quantity by the approver.
Here approver only able to do this type of adjustment

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Here We can also reject the adjustment or also we can adjust by needed quantity.
Entering the quantity and approving all quantity
Launch Adjustment
Inventory superuser->Physical inventory->Physical inventories

A concurrent program will generate for adjustment.

When the program run successfully the on-hand quantity will be changed

On Hand After Adjustment

Here we can see the change of quantity after a adjustment.

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This type of physical inventory are used to check the quantity of on hand are matching.
We can also avoid the most of the quantity accounted by doing these adjustment.

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