Business Process Flow in Oracle Applications (2).pdf

8/14/2019 Business Process Flow in Oracle Applications (2).pdf

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Business Process Flow in Oracle Applications

Prepared by

Sivakumar Ganesan ISC


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Oracle Internal - Confidential2

IndexPages

A. Business Case 3 - 5

1) Creation of Items 5 34

2) Setting up Selling Price for an Item 35 - 37

3) Define Customer 38 - 40

4) Creation of Sales Order 41 - 47

5) Enter Item Costs 48 55

6) Define Resources 56 58

7) Define Departments 59 63

8) Define Routing (CPU Sub assembly) 64 70

9) Define Bill of Materials (BOM) CPU Sub assembly 71 82

10) Define Routing (Dell Computer) 83 85

11) Define Bill of Materials (BOM) (Dell Computer) 86 97

12) Define Suppliers 98 105

13) Enter Purchase Requisitions 106 115

14) Create Purchase Orders 116 136

15) Enter Receipts (Inventory Receipt) 137 144

16) Auto-create Supplier Invoice 145 148

17) Create, View Invoices and Make Payments in Payables 149 167

18) Payments Reconciliation 168 175

19) Create, Release, Complete, Close Discrete Job for CPU Subassembly 176 204

20) Create, Release, Complete, Close Discrete Job for Dell Computer 205 215

21) Sales Order Booking, Releasing, Ship Confirm the Finished Goods 216 235

22) Run Auto invoice 236 242

23) View Sales Invoice, Create Receipt, Remittance and view Account Balances 243 255

24) Receipt Reconciliation 256 - 262


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Business Process Flow in Oracle Applications

Case Study:

Dell Computers is manufacturing Computers based on the Orders received

from the Customers.

Dell Computer has received an Order from IBM Corporation for supply of

Dell Computers. Dell computer Purchases Raw materials from two suppliers

for manufacture of Dell Computers.

Motherboard, Floppy Drive, Compact Disc Drive is purchased from

Flextronics Inc for manufacture of CPU subassembly.

Monitor, Mouse, Printer is purchased from HP Incorporated for manufacture

of Dell Computers. For the purchases made from HP Incorporated, Dell

computer Uses Self billing to make payment to the supplier.

The Cost Prices and the Process of Manufacturing is detailed below.

Assumptions:

1. It is assumed that for this cycle all the Basic set up required in Oracle

Applications is in order. (i.e) Business group, Set of Books, Operating

Unit, and Inventory Org.

Business Group Vision Operations

Set of Books Vision Operations

Legal Entity Vision Operations

Operating Unit Vision Operations

Inventory Org M1-Seattle Manufacturing

2. Basic Set up required in Application Modules like (PO, INV, AP,

MFG, OM, AR & CM) are in place.3. For this exercise, we are using Standard Costing which is set in the

Inventory Org M1- Seattle Manufacturing


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Dell Computers is Manufacturing Slim Computers and their Manufacturing Process is as follows

(M) Finished Goods

Assembly Department10 Hours @ 40 USD per Hour

Monitor Mouse Printer CPU (Sub Assembly)(M)

(P) (P) (P)

500 USD 100 USD 900 USD

Mother Board CD Drive Floppy Drive(P) (P) (P)

1000 USD 750 USD 250 USD

Soldering Department10 Hrs to 10 USD per Hour

Fixing Department4 Hrs @ 125 USD per Hour

P Stands for Purchased ItemM Stands for Manufactured Item.

Overheads Apportionment for this Product for each of the Department is as Follows

Soldering Department - 250 USD

Fixing Department - 400 USD

Assembly Department - 350 USD

Dell Computer


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The Purchase cost of a CPU Sub Assembly Item is as follows

CPU (Sub Assembly)

Mother Board 1000 USD +

CD Drive 750 USD +

Floppy Drive 250 USD

--------------

Purchase Item Cost 2000 USD

=========

Manufacturing Cost of CPU Sub assembly is as follows

Purchase Item Cost is 2000 USD

Operations Cost

Soldering Dept Cost 100 USD

Fixing Dept Cost 500 USD

600 USD

Departmental Overheads 650 USD

--------------

Manufacturing Cost of CPU 3250 USD

========The Purchase cost of a CPU Sub Assembly Item is as follows

CPU (Sub Assembly) 2000 USD

Mouse 100 USD

Printer 900 USD

Monitor 500 USD

--------------

Purchase Item Cost 3500 USD

=========

Manufacturing Cost of CPU Sub assembly is as follows

Purchase Item Cost is 3500 USDOperations Cost

Soldering Dept Cost 100 USD Variable cost of an Item

Fixing Dept Cost 500 USD

Assembly Dept Cost 400 USD

1000 USD

Departmental Overheads 1000 USD Fixed Cost Apportionment

--------------

Manufacturing Cost of Dell Computer 5500 USD========

Selling Price of Dell Computer is 6000 USD


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1. Creation of Items

First, We will create Purchased, Subassembly and Finished Goods Items

Entering details in Master Item form for the Purchased Item Floppy Drive

Navigation Path

Manufacturing and Distribution Manager

InventoryItemsMaster items


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Double Click on Master Items Form

Organization Window will pop up.

Choose M1- Seattle Manufacturing Inventory Organization.


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Enter Item Name and Description as Floppy drive and save the item.


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Click on Tools Screen and choose copy from Icon from the List of Menu


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Choose the Template Purchased Item from the List of Values and Click OK.

Oracle Provides 16 seeded Templates.


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Click on Apply Button First and then Done Button to copy the Attributes of

Purchases Item Properties.


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You will find in the Field User Item Type Field is shown as Purchased Item

and we will see all the other Tabs to ensure is the Item Properties have been

copied or not.


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Click on Inventory Tab

Ensure the check Boxes of Inventory Item, Stockable, Transactable and

Reservable check boxes are enabled.


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Click on Bill of Material Tab


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Click on Asset Management Tab


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Click on Costing Tab and check the following

a) Costing Enabled check box is checked or Not.

b) Include in Rollup check box is checked or not. This is required to

include the Item cost of this item in Cost roll up of finished goods.


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Click on Purchasing Tab and enter the List Price Field Value 250.This Price

will default when we create Purchase Requisition or Purchase Order for this

Item. Ensure the Purchased, Purchasable check boxes are enabled or not.


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Click on Receiving Tab


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Click on Physical Attributes Tab


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Click on Right arrow to view the other Tabs


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Click on MRP/MPS Planning tab


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Click on Lead Times Tab


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Click on Work in Process Tab


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Click on Order Management Tab and ensure Customer ordered, Customer

Orders enabled, Shippable, OE Transactable, Returnable check boxes are

enabled.


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Click on Invoicing Tab and ensure Invoiceable Item and Invoice enabled

check boxes are enabled.


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Click on Service Tab


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Click on Web Option Tab and Click on Save Button

Similarly, We need to Define Purchased Item Using Purchased Item

Template for Compact Disc Drive, Mother Board, Monitor, Printer andMouse Respectively. You need to enter the Purchase Price Value in the List

Price Field of Purchasing Tab and save it.


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Next, We need to assign this Item to M1-Seattle Manufacturing

Organization

Click on Tools Menu and click on Organization Assignment


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Click on Assigned Check Box for M1- Seattle Manufacturing Inventory Org

and save it.

Similarly, after defining Purchased Item using Purchased Item Template for

Compact Disc Drive, Mother Board, Monitor, Printer and Mouse

Respectively, You need to enter the Purchase Price Value in the List Price

Field of Purchasing Tab and save it. Also we need to assign all the items

defined to M1- Seattle Manufacturing Inventory Org.


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Next, we need to define the CPU Sub Assembly Item using Sub assembly

Template and complete the same Process as above. Click on OK button to

enable Costs on Roll up basis.


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The CPU Subassembly Item will have the User Item Type as Subassembly

Item

Assign this item also to M1- Seattle Manufacturing Org as explained above.

Note: - We do not enter the List Price for this item, as it is a manufactured

item. Therefore the Cost for this Item is sum of all the Purchased Item and

Operations cost involved in manufacturing this product.


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We will define the Finished Goods Item Dell Computer as above using the

Finished Goods Item Template.

Note: - We do not enter the List Price for this item, as it is a manufactured

item. Therefore the Cost for this Item is sum of all the Purchased Item and

Operations cost involved in manufacturing this product plus the cost of CPU

subassembly item.


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Go to Tools menu and Copy from option choose Finished Goods Template

and click Apply button. A Note will Pop up for Rollup of Cost, click OK

and click on Done Button.


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2. Setting up Selling Price for an Item

Next Step is to define the Selling Price for the item Dell Computer in Oracle

Pricing Module.

Log on to Oracle Order Management Super User Responsibility.

Navigation Path

PricingPrice ListPrice List Set up


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Click on the Form and Query for %Corporate% in Name Field.

Click on New Button keeping the cursor in Product Context Field

Enter the Following

Product Context Item

Product Attribute Item Number

Product Value Choose from LOV Dell Computer, which is the Finished

Goods Item.


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Scroll towards right in the same form and check Application method Field

has Unit Price and enter 6000 in the Value field which is the Selling Price of

the Dell Computer and save it.


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3. Define Customers

Next step is to define the Customer from whom the Sales Order is received.

In Order Management Super User responsibility enter the Customer from

which you got the Sales Order.

Navigation Path

Order Management Super User responsibility

CustomersStandard

Enter the Name of the Customer and ensure Customer type is Organization.

Click on Find Button. System will Prompt the Customer do not exist and Do

you want to create a New Customer. Click New and Continue.


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Customer Standard form will open. Click on New button to enter the address

for the customer.


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Click on New Button to create an address for the Customer

Enter the Address and Choose Bill to and Ship to Business Purpose and

enable the Primary check box for both Business Purpose and attach the Bill

to site for the Ship to site.

Note down the Organization Number (Party Number), Customer Number

Generated for the Customer. The Default Customer Profile Class will get

attached to the Customer the moment you save the Customer.

You are ready to create a Sales Order for the Customer you have created

now.


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4. Creation of Sales Order

Order Management Super User Responsibility

In Sales Order form Enter the Sales Order for the Finished Goods Item Dell

Computer

Navigation Path


Order, ReturnsSales Orders


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Click on the Sales order form and enter the Customer Number or Name.

The Bill to and Ship to Information will default from the Customer. Enter

the Order type as Mixed from the LOV and choose the Price List as

Corporate (We entered our Finished Goods Item under this Price List and

defined the Selling Price for this item).


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Click on Other Tab in Sales Order Header Form and some fields will be

populated from the Customer Form.

Choose Warehouse as M1- Seattle Manufacturing and save the Sales Order.


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Click on Line Items Tab

Enter the Ordered Item as Dell Computer from the LOV and Enter the

Quantity Field, the Unit Price Field and Extended Field amount will

populate from the Price List we defined above.

Scroll towards Right in Main tab of Line Items and choose the Tax Code

Field as Exempt and save the record.


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It pops up a Message unable to Reserve the quantity, as there is no Stock.


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Click OK and go to Sales Order Header Screen.


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In the Sales Order Header Screen, now you will find the Status of the Sales

Order is entered and the Value is populated with the Quantity and the Selling

Price of the item.


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5. Enter Item Costs

We have to define the BOM (Bill of Materials) and Routing for the Finished

Goods to create a Discrete Job to get the Inventory for the Finished Good.

We need to define the Lower Level first and then Higher Level to define the

BOM and Routing.

The Steps involved are as follows.

Define ItemEnter Item Costs

Define ResourceEnter Resource costDefine DepartmentsEnter

Resource Utilization in Man hoursEnter Departmental Fixed OverheadDefine RoutingAttach the Department to Routing

Define BOM for SubassemblyAttach Purchased ItemAttach

OperationsRun Item Roll up CostsUpdate Standard Costs

Define BOM for Finished GoodsAttach SubassemblyAttach

additional Purchased ItemAttach OperationsRun Item Roll up Costs

Update Standard Costs.


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We have already defined the Purchased Items, Sub assembly Item and

Finished Goods Item.

First Let us define the Item Costs for the Purchased Items.

Log on to Manufacturing and Distribution Manager Responsibility

Navigation Path


CostsItem CostsItem Costs


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Click on the Item Costs Form and Choose M1-Seattle Manufacturing

Inventory Org. Find Window Pops up. Enter the Purchased Item and Click

Find


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Item Costs Summary Window Pops up which is as follows. Click on Open

Button


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Item Costs Summary Window Opens with Following Details.

This is a Purchased Item. Hence Based on Roll up is not enabled and Make

or Buy field shows as Buy.

The Material Overhead by Default shows the Value of 20.We will overwrite

this amount and make the changes in Costs Screen. Click on Costs Screen.


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In the Costs Screen click on Cost Elements LOV, You will find Five List of

Values.

The Cost Elements in Oracle Applications are as Follows

1. Materials

2. Material Overheads

3. Resource

4. Outside Processing

5. Overhead

The Cost of an Item is calculated using the above five Cost Elements.


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In the Item Costs Screen Overwrite the Material Overheads with the

Following Values.

Cost Element - Materials

Sub element Materials

Basis Item

Rate or Amount 250

Save the Record


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Now close the Item Costs Screen and come to Item Cost Details Screen and

you will find Unit cost is updated with 250 and Material Overhead is zero.

Similarly, Enter the Item Cost Details of other Items as Follows.

Compact Disc Drive 750 USD

Mother Board 1000 USD

Printer 900 USD

Mouse 100 USD

Monitor 500 USD

All of them should be entered Cost Element as Materials.


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6. Define Resources

Before defining Routing, We Need to Define Resources, Resource Costs,

Define Departments and Departmental Overheads.

First we will define the Resources.

Manufacturing and Distributions Manager Responsibility

Bill of MaterialsRoutingsResources


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Click on the Resource Form and enter the following

Resource Soldering

Description Soldering Department

UOM HR

Type Person

Charge Type WIP Move

Enable costed check box and choose activity as Move from LOV and enable

Standard Rate Button. Enter the absorption account and variance account.


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Click on Rates tab in the Resource form and enter the Resource unit cost

Similarly define Resources Fixing and Assembly and enter the Rates as

follows.

Fixing 125 USD

Assembly 40 USD


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7. Define Departments

Next we need to define Department and attach the Resources to the

Department

Navigation Path


Bill of MaterialsRoutingsDepartments


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Click on Department Form and Enter the Department Name. Click on

Resources Button.


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For Fixing Resource the UOM defaults from the Resource we defined earlier

and enter the Utilization of the Resource for this Department to manufacture

this Product.


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Close the previous Window and come to main Department screen. Click on

rates Button


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This Opens the Overhead Rates Window. Enter the Overhead

Apportionment to this Product as follows.

Choose Cost Type as pending and in Overhead rates choose overhead as

Indirect from the LOV. Basis of charge choose as Item from LOV and enter

the Rate or amount field with Overhead Apportionment.

(i.e) 250 USD in this case.

Similarly Define Departments for soldering and Assembly. Enter the

utilization of the Resource for the Department and enter the Departmental

Overheads.

Fixing Department Man-hour Utilization 4 Hrs.

Fixed Overheads 400 USD

Assembly Department Man hour Utilization 10 Hours

Fixed Overheads 350 USD


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8. Define Routing (CPU Sub assembly)

After Defining resources and departments, next we need to define Routing

for CPU Sub Assembly. Routing is the Sequence of operation performed to

convert the Raw material to Finished Goods.

Navigation Path


Bill of MaterialsRoutingsRoutings


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Click on the Routings and choose the CPU Subassembly from the Item Field


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Enter the Sequence in which operations are performed for Manufacture of

Subassembly

10 Soldering

20 Fixing Dep


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Under the Routing Form, WIP Tab check whether back flush checkbox is

enabled or not.

Click on Operation Resources Button keeping the cursor in SolderingDepartment. This allows you to enter the Resource Soldering for Soldering

Department attached to Routing CPU Assembly.


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In Operation Resources Form, Choose the Soldering Resource and enter the

Usage as 10 Hours. Save the Record.

Close the Form


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In the Main Routings Form Keep the Cursor in Fixing Dep and Click

Operation Resource button again and enter the Usage for the Fixing

Department for CPU Subassembly. The Usage value is the utilization of

hours for this operation.


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Click on the Scheduling Tab and choose the Schedule to Yes. We need to do

this for all Resources. (Fixing and Soldering). The Purpose of setting the

Schedule field to Yes is to calculate the starting operation hours to close

operation hours. If we set it to No, then operational hours will not be

calculated.


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9. Define Bill of Materials (BOM) CPU Sub assembly

Next, we have to define the BOM (Bill of Materials) for CPU Sub assembly.

Navigation Path


Bills of MaterialsBillsBills


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Click on Bills and Choose the CPU Subassembly from Item Field

In the Item sequence 10 Defaults Choose Operation Sequence as 1 and

Component as Mother Board

Similarly Enter Item Sequence 20 and choose Operation Sequence 1 and

component Compact Disc Drive


component Floppy Drive


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In the Component Details Section You can check whether the Chosen Items

are included in cost roll up and whether it is a Purchased Item or Sub

assembly Item.


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Click on Material Control Tab and choose Supply Type as Assembly Pull

and Sub-inventory as RM Stores and save the work.

The Purpose of choosing Supply Type as Assembly Pull the Raw material

items pertaining to the Finished Goods will get consumed once we complete

the Discrete Job or Scheduled Job.

The Sub-inventory is the Location where the Purchased Items are stored will

get reduced as Consumption once we complete the Discrete Job.


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Choose cost Type as Pending and click OK. This will create a concurrent

request to run the Roll up Cost Report for CPU Sub assembly.


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Click on View MenuRequestsFind Requestscheck for Request ID

1770313


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Click on View Output file to view the Cost Report.


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We have to run the Update Standard costs Program to Update the Standard

Costs after checking the Costs have been calculated Properly.

Navigation Path

Manufacturing and Distributions Manager

CostsItem costsStandard Cost UpdatesUpdate costs


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Click on Update Costs. This will run a Concurrent request. Enter The

Parameters


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View Request for Concurrent Request ID 1770355 completed Normal.


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The Item cost for CPU Sub assembly after running the Standard Cost Update

is as Follows

Navigation Path.


Costsitem CostsItem Costs


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10. Define Routing (Dell Computer)

Next, we need to Define Routing for Dell Computer.

Navigation Path


Bill of MaterialsRoutingsRoutings

Attach the Assembly department to the Dell Computer Item. The steps are

exactly same as what we did in CPU Subassembly.

Click on Operation Resources Button


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In Operation Resources Form choose the Resource Assembly and enter the

Usage and click Scheduling tab.


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In the Scheduling Tab set schedule to Yes and save the Record.


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11. Define Bill of Materials (Dell Computer)

Next step is to define the BOM (Bill of Material) for Finished Goods item

Dell computer

Navigation Path


Bills of MaterialsBillsBills


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Click on Bills and Choose the Dell Computer from Item Field

In the Item sequence 10 Defaults Choose Operation Sequence as 1 and

Component as CPU Subassembly


component Mouse


component Printer


component Monitor


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Go to Component Details Tab and check Roll up cost is enabled or not


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Go to Material Control tab and enter the Supply type as Assembly Pull for

all the three Items. In sub-inventory field enter FG Stores from LOV for

CPU subassembly Item and RM Stores for Printer and Mouse and save the

records.

The Purpose of choosing Supply Type as Assembly Pull is the Raw material

items pertaining to the Finished Goods will get consumed once we complete

the Discrete Job or Scheduled Job.

The Sub-inventory is the Location where the Purchased Items are stored will

get reduced as Consumption once we complete the Discrete Job


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We have to run the Rollup Cost to get the Cost of Finished Goods Item Dell

Computers.

In the Same Bills Form for Dell Computer Item

Click on Tools MenuRoll up costs.


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Choose cost Type as Pending and click OK. This will create a concurrent

request to run the Roll up Cost Report for Dell Computer.


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View Requestfind RequestRequest ID 1770655


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Click on View Output file to view the Cost Price calculated for Finished

Goods item Dell Computer.


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We have to run the Update Standard costs Program to Update the Standard

Costs after checking the Costs have been calculated Properly.

Navigation Path


CostsItem costsStandard Cost UpdatesUpdate costs


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Submit the Request with the parameters given.


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View the Request 1770664 and check is it completed normal.


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The Item cost for CPU Sub assembly after running the Standard Cost Update

is as Follows

Navigation Path.


CostsItem CostsItem Costs


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12. Define Suppliers

Then, We have to complete the Purchasing to Inventory Receipt cycle in

Purchasing Responsibility.

Log into Purchasing Responsibility

Supply BaseSuppliers


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Click on the Supplier Form and Enter the Suppliers Name Flextronics Inc

And click on Sites Button

For this Business case, we assume Flextronics Inc is Supplying Mother

Board, Compact Disc Drive and Floppy Drive.


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In the Supplier Sites Form enter the Address for the Supplier and save the

record.


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For this Business case we assume HP Incorporated is supplying Mouse and

Printer on Self Billing Basis.

We need to create one More Supplier to Show the Pay On Receipt Invoice.

(Self-billing Invoice)

Log into Purchasing Responsibility

Supply BaseSuppliers

Click on Site Button and enter Address for the Supplier.


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In General Tab/ Site Uses / Pay Site / Purchasing


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In Supplier Site Payment Tab change Terms to Immediate and payment

method to Electronic


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In Supplier Sites Bank Account Tab attach the bank Account and Enable the

Primary check box as it is an Electronic payment method.


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In Supplier Sites Purchasing tab under Self Billing

Pay on Field choose Receipt and save the Record.


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13. Enter Purchase Requisitions

We have to Create Purchase requisition (PR) for the Purchased items

In Purchasing Responsibility

RequisitionsRequisitions


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Enter the Purchase Requisition for Flextronics Inc for Purchase of other

Board, Compact disc Drive and Floppy Drive.

Enter Each Item One by one and choose the following for each of the record

and save the record.

Organization - M1-Seattle Manufacturing,

Location F1 Seattle,

Sub Inventory RM Stores

Supplier Flextronics Inc,

Site New york and save the record

click on the Distributions Button.


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The Distributions form will open and show the account to which the charge

account will get booked.

Close the Form and go to the main form. Click on Approve button.


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Approve Document forms Open up

Check Submit for Approval check Box is enabled and click OK.

Click OK and go to Requisition summary form to check whether the created

PR is approved or not.


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Navigation Path

Purchasing Responsibility

RequisitionsRequisition Summary

Enter the Requisition Number in the Field and Click on Find Button.


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Check the Status of the Purchase Requisition in Requisition Headers

Summary Form.

The Status shows Approved.


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If the Status of the PR is in the status of in-Process click on tools menu

view Action History Button to find out who is the approver for this Purchase

Requisition.


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In this Case the Buyer and Approver are same. Hence the Purchase

Requisition is showing as approved.


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Similarly we need to create another Purchase Requisition (PR) for Purchase

of Mouse and Printers.

Click on Approve Button and check the Status of the Purchase Requisition is

approved or not in Purchase Requisition Summary.


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Purchase Requisition 1757 for HP Incorporated for Purchase of Mouse and

Printer is approved.


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14. Create Purchase Orders

Next we have to create Purchase order from the Purchase Requisition

created above. We have auto-create Purchase order option to create Purchase

order (PO) from Purchase Requisition (PR)

Using Auto-create also there are Two Options to create Purchase order.

(i.e) Manual or Automatic.

We will use For PR 1756 Manual option and for PR 1757 Automatic Option.

Navigation Path


Auto-create Form


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Click on the Form and enter Purchase Requisition (PR) 1756 and click on

Find Button

Note: By default when you open the Form, Buyer field and Ship-to Location

Field would have populated with default values. Before clicking the Find

Button remove those default values and then click on Find Button otherwise

system will show as No data found.


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This Opens auto-create Documents form. Choose the checkbox against the

each of the item and click on manual button


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This opens the form New Document Form. Choose the Supplier Flextronics

Inc and click create Button.


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It creates a Document Builder in Autocreate Documents Form


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Choose Item one by one and click on Add to document Button. This will add

each Item to Document Builder Tab. After adding all the Items click on

Create button in the Bottom.


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A message pops up stating the PO created with the PO Number. Click Ok to

view the PO Details.


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View the PO created from the above, which is as follows. The Status of the

PO is showing as Incomplete. We need to approve the PO.

Before approving the PO click on Shipments form and change the receipt

Routing to Direct Delivery in receiving Controls button for each of the Item.


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Click on Shipments Button and go to More tab and change the Match

Approval level to 2 way matching and click on Receiving Controls Tab.


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In Receiving Controls Tab change the receipt Routing from standard Receipt

to Direct Delivery and click on OK button.

Standard Routing : This process wil receive the Inventory in Main Inventory

Org and you need to do a manual transfer to Sub-inventory if we choose this

option.

Direct Delivery:- This Process Delivers the Goods directly in Sub-

inventories.

Inspection required: This Process requires inspection of Goods beforeReceiving the Goods in the inventory org.

Perform the above steps for Items Floppy Drive and Compact Disc Drive

Also.


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After doing the above steps for all the three Items, Click on Approve Button

to Approve the PO.


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In Approve Document screen click on OK Button.

Click OK and check the status of the PO.


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Status of the PO is now showing approved. We can Receive Inventory

against this Purchase Order.


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Similarly we will use Auto-create option to create automatic approval for PR

1757.

Navigation Path.


Auto-create Form

Click on Find Button


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It opens Auto-create Documents form. Choose the two Items and click on

Automatic button.


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It opens the New Documents Button. Click on Create Button.


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This has created a new PO 3610.Click Ok to view the PO.


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The PO 3610 is created with a status of Incomplete.

We need to perform the above steps as we did for Previous Purchase order.

Change the Match Approval level to 2 Way in ShipmentsMore Tab and

in Receiving controls change the Receipt Routing to Direct Delivery before

Approving the Receipt.

Click on Approve button after doing the above steps.


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View the status of the PO after Approval.


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We will create PO without PR for Monitor and approve it for 10 Units.

Click on Approve Button in the same lines.


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Check the PO 3611 created is Approved status.


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15. Enter Receipts (Inventory Receipt)

Next we need to Receive Inventory against PO 3609

Navigation Path.

Purchasing responsibility

ReceivingReceipts


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Click on the Receipts Form and enter the PO Number 3609 and click on find

Button


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Receipt Header Form Opens. Enter Comments Filed PO 3609 and close the

window.


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Receipts screen opens up. Select all the three Items on the Left-hand side

check Box and Save the record.


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Click on the Header Button to note down the Receipt Number

Similarly Receive the Inventory against PO 3610 and PO 3611.Receipt 6150 and 5151 created.


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You can view the details of Inventory receipts in the Following Screen Shot.

Log into Inventory Responsibility

On- Hand availabilityOn-hand Quantity


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Click on the Form and choose M1- Seattle Manufacturing Inventory and

choose Sub inventory as RM Stores. Click on the Find Button at the bottom.


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Material Workbench Form opens up and you can view the stock of Floppy

Drive, Compact Disc Drive, Mother Board, Printer, Monitor and Mouse

showing onhand stock as 10 units.


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16. Auto-create Supplier Invoice

Next we have to run Pay on Receipt Program to create self Billing Invoices

for Receipts 5150 and 5151

Navigation Path


Requests


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Click on the Requests Window

Choose the Pay on Receipts Autoinvoice Program

Enter the Receipt Number 5150


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Click Ok and Submit the Request. View the Request 1770748 to check the

status.


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View the Invoice Report and Note Down the Invoice number ERS 09-

Nov-03

Similarly run the Pay on Receipt Auto-invoice for Receipt 5151 also


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17. Create, View Invoices and Make Payments in Payables

View the Invoice created in AP Responsibility

Log into Payables Responsibility

InvoicesInvoices.

Query for Supplier 5091

You can view the Invoice Created for Receipts 5150 and 5151.


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Next we have to create an Invoice for the PO 3609 and Match it with an

Invoice.

Navigation Path

Payables responsibility

InvoicesInvoices


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Click on Match Button. Find Purchase Orders for Matching Window pops

up. Enter the PO number 3609 and click on Find


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Match to Purchase Orders Window Pops up. Enable the Match check Box on

the Left hand corner.


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Click on Distributions Button to view the Distributions.

Click on Actions Button to Validate the Invoice.


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Invoice Actions Screen Opens up. Enable the validate check box and click

OK


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Check the Status of the Invoice Now. It will have status as validated.

Click on Actions Button again.


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Enable Create Accounting Check Box and Click Ok.


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Click on Tools Menu and view Accounting to view the accounting entries

Created.


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Output of the Accounting Entries

Close the window and Click on Actions Button from the Invoice Screen to

make Payment for the Invoice.


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In Invoice Actions Button enable Pay in full check Box and click Ok.


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Payments Window opens up. Choose the Type as Quick and choose the

Bank account and Document Type and save the Record.

Payment Document Generated for this record.

Close the Screen and Query for the Invoice again to View the Paymentdetails in Invoice Header Screen.


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View the Details of the Payments in Invoice Header screen.


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Click on the Overview Button to view the complete details of Invoice and

Payments.


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We need to Account for the Check Payment what have been made.

Navigation Path

Accounts Payables

PaymentsEntryPayments


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Click on the Payment form and Query for the Document Number 95003


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Click on Actions Button and Enable the Create Accounting Check Box and

Click Ok Button.


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Click on Tools Menu to view the Accounting Entries created for the

Payment


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The View Accounting Screen Displays the Accounting Entries Generated for

the Payment we have made for Invoice 2345.


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18. Payments Reconciliation

Next, we need to Log into Cash Management Responsibility and Reconcile

the Payments

We need to enter the Bank Statement First in the system and call the

Payment advice to reconcile with Bank Statement.

Navigation Path

Cash Management Responsibility

Bank ReconciliationBank Statements.


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Click on the Bank Statements and Click on the new Button


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These Opens the Bank Statements Form and enter the Bank Account for

which you want to enter the Bank Statement. Enter in Control Totals

Payments field 20000 and click on Lines Button.


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Click on the New Button and Enter the Lines for a Bank statement and enter

20000 in the amount column and save the record.

Close the Window.


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Next we need to call the Payment advice 95003 and reconcile with the Bank

Statements.

Navigation Path

Cash Management Responsibility

Bank ReconciliationManual ClearingClear Transactions


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Open the Form and Find Transactions Window, by default the Radio Button

Details will be enabled and all the check Box (Receipts, Payments &

Miscellaneous) will be enabled. Uncheck the Receipts and Miscellaneous

Check box and choose the Bank Account Number from the LOV. Click on

Find Button.


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Clear Transaction Form opens and you will find number of transactions,

which are not cleared. In the Number field Query for the Payment advice

95003.Enable the Check box on the left-hand side and click the Clear

Transaction.


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After clicking Clear Transactions You will find there are No Transactions in

the screen. This indicates the Transaction is cleared and reconciled.


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19. Create, Release, Complete, Close Discrete Job for CPU Subassembly

Next we need to create a Discrete Job for the CPU Subassembly to build

inventory for the CPU Sub assembly.

Navigation Path.

Manufacturing and Distribution Manager.

WIPDiscreteDiscrete Job


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Click on the Discrete Job form and enter the following details.

Choose the Inventory Org as M1- Seattle Manufacturing Responsibility and

click on the New Button.


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Discrete Job form Opens, Click on the Assembly field then automatically

Discrete Job number is created. Choose CPU Subassembly Item in the

Assembly Field. The Type field as Standard, Class Field as Discrete and

Status Field as Unreleased defaults from the system. Enter the Start Quantity

and Start Date and click on the Routing Tab.


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Choose the Sub-inventory field as FG Stores in Discrete Job form and save

the record.


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We need to release the discrete Job to shop floor to get the job executed.

Change the status of the Discrete Job from Unreleased to Released and Save

the Record.


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We need to complete the Discrete Job to get the Finished Goods entry to be

created.

Navigation Path

Manufacturing and Distributions Manager.

WIPMove TransactionsMove Transactions


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Click on the Form and click on the LOV of Job Field and find Job number

59099. In the Transaction Type, enable the complete button and choose the

From Seq to have the value of 10 and step field as Queue and To Sequence

to have the value of 20 and the step field as To Move.

Enter Quantity Field under Transaction as 5, which indicates those many

CPU subassembly units are completed and save the transaction.


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The Moment you click the save button, you will find the screen is blank for

the record created. This indicates the Job is completed.


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Now you can go back to Discrete Job screen and view the status of the Job.

Navigation Path




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The Discrete Job for CPU subassembly 59099 need to be closed in order to

get the Account Distributions for the above Job. Unless we close the Job, the

Distribution entries are created only for the Material Consumption, but the

Transaction value for the Finished Goods (i.e) CPU subassembly is not

created. The Transaction Value for the Discrete Job is created only when we

close the Job.

Navigation Path


WIPDiscreteClose Discrete JobsClose Discrete Job (Forms)


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To close the Discrete Job, Find window pops up. Enter the job number

59099 and click the find button.


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Close Discrete Job form opens. Click on Tools Menu and click on Close 1

Button


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Close Discrete Jobs Request screen opens. Keep the Report type as

Summary and click OK. This will generate a Concurrent Request.


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Concurrent Request ID Number is 1772713.


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View the Concurrent Request 1772713. It is completed Normal.

Click on View Output to view the Report.


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The output of the file will be as follows.


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We can view the Material Distributions for this Job now.

Navigation Path.


InventoryTransactionsReceivingMaterial Transactions


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Click on the Form and Enter the Item Detail and click the Find Button.


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Material Transactions Window Opens and Primary Quantity field shows the

Quantity available. Click on Distributions window to view the accounting

Entries generated for the CPU subassembly.


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Material Transaction Distributions window Opens and you can view the

accounting distribution entries. Click on Type Tab to view the Accounting

Type


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The Type Tab shows the Accounting Type of Transactions.

Inv Valuation Dr

WIP Valuation Cr


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We can also view the Material Consumption accounting entries for the

Manufacture of CPU subassembly.

Navigation Path


InventoryTransactionsReceivingMaterial Distributions.


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Click on the Form and Enter in the Sub inventory field as RM Stores and

click on Find Button.


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This will show the Material Transaction Distributions value for 10000

Click on the Type Tab.


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The Type Tab shows the Accounting Type of Transaction

WIP Valuation Dr

Inventory Valuation Cr


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We can also view the Resource Transactions for the CPU subassembly

Navigation Path.


WIPResource TransactionsView Resource Transactions.


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Click on the View Resource Transactions form and enter the Job Number

and click on Find Button


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This will show the individual details of Resource Cost and Overhead cost for

the Job 59099.We need to click Distributions Line one by one Line to get

the value of 6250.


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Click on Tools Menu View Accounting to view the Accounting entries

generated.

WIP Valuation Dr

Overhead Absorption Cr.


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20. Create, Release, Complete, Close Discrete Job for Dell Computer

Next, We have to create a Discrete Job for Finished Goods Item Dell

Computer. The Steps involved are same as CPU Sub assembly.

Navigation Path.



Discrete Job 59100 has been created to Produce 3 units of Dell computer

with the Status of Unreleased.


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Release the Discrete Job 59100.


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Complete the Discrete Job 59100. Enter the Details and Save the

Transactions.

Navigation Path


WIPMove TransactionsMove Transactions


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We have to Close the Discrete Job 59100 for the Finished Goods Item Dell

computer to get the accounting Entries Generated.

Navigation Path.


WIPDiscreteClose Discrete JobClose Discrete Job (Forms)

Click on Tools Menu and click on Close 1 to close the Discrete Job.


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Closing the Discrete Job generates a Concurrent Request ID.


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View the Concurrent Request 1772830. It is Completed Normal. Click on

View Output to view the accounting entries generated.


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View the Output file for the Discrete Job Value Report 59100.

We can check the Inventory created for the Finished Goods Item


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Navigation Path.


InventoryOn Hand AvailabilityOn Hand Quantity.


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Click on the Form and Enter the Sub inventory as FG Stores and click Find

Button.


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Material Workbench form opens up and you can view the Stock on Hand for

the Dell Computer is showing as 3 Units and the CPU subassembly is

showing as 2. This indicates that 3 units of CPU subassembly has been

consumed for the manufacture of Dell Computer.


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Similarly will view the Stock in Hand for the RM Stores also.

This shows the

Stock Purchase and Consumption details as follows.

Raw Material Consumption = Received Inventory less Consumed in

Manufacture of CPU Sub assembly

Compact Disc Drive = 10-5 = 5

Floppy Drive = 10-5 = 5

Mother Board = 10-5 = 5

Raw Material Consumption = Received Inventory less Consumed in

Manufacture of CPU Sub assembly

Monitor = 10-3 = 7Printer = 10-3 = 7

Mouse = 10-3 = 7


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21. Sales Order Booking, Releasing, Ship Confirm

Since we have the Inventory on Hand now, we can execute the Sales Order.

Log into Order Management Super User Responsibility and check for the

availability of the Inventory and book the Sales order.

Navigation Path.

Order management Super user Responsibility

Order, ReturnsSales Orders


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Open the Sales Order form and Query for the Sales order number 51823,

which was created earlier.


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Click on availability button to check the stock for the Item.


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Close the window and book the Sales order now.


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Release the Sales order for Shipment of the Item.

Navigation Path


Shippingrelease Sales ordersRelease Sales orders


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Click on the form and choose the Based on Rule field as Standard and

enter the Order Number 51823. Click on Shipping tab and check Auto-create

Delivery is set to Yes and auto-pack delivery also to Yes. Click on

Inventory Tab.


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In the Inventory Tab of Release Sales Order for Picking Form, check the

Warehouse is showing as Mi- Seattle Manufacturing and Auto-allocate and

auto-pick confirm to Yes. Choose the sub inventory as FG Stores in

Default Stage area and save the Transaction.


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This will generate a concurrent Request.


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View the concurrent Request 1772895.It is completed Normal.


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Next, we have to Ship the Sales Order.

Navigation Path

ShippingTransactions


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Click on the Form and enter the Sales Order Number 51823 and click on

Find Button


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Shipping Transactions Window Opens and the Line Status shows as Stage

/Pick Confirmed for the Sales Order 51823.


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Click on Delivery Tab and choose Ship Confirm from Actions LOV and

click Go Button.


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This Opens the Confirm Delivery Screen. Click on OK Button. This will

generate a concurrent request. Click OK and view the Concurrent Request

1772932.


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View the Concurrent Request 1772932. The Request completed Normal. We

can view the Output of the commercial Invoice created in concurrent

Request ID 1772931


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The Output of Commercial Invoice created at Ship Confirm Stage.


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Next we can go and Check the Status of the Sales Order.

Navigation Path.

Order Management Super User

Order, ReturnsSales Order

Query for the Sales Order Number and click on Line Items to view the

Status.


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Next, we need to run the Workflow Back ground Process to populate the AR

Interface Table.

Navigation Path

Order Management Super User Responsibility.

Report and RequestsRun Requests

Choose the Concurrent Request Workflow Back ground Process

And Enter the Parameters as follows.

Process Deferred set to Yes

Process Timed Out No.

Click on OK and Click Submit Button.This will generate a Concurrent

Request.


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The Concurrent Request ID 1772692 is created.


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View the Concurrent request ID 1772692.


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22. Run Auto invoice Process

Next, we need to Log on to Accounts Receivables Module to view the Data

Populated in AR Inter face table.

Navigation Path.

Receivables, Vision Operations

ControlAutoinvoiceInterface Lines


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Click on the Interface Lines and Query for the Sales Order Number 51823

in the SALES_ORDER Field. Click on the Errors Button to find any errors

is there.


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Clicking on Errors screen opens Line Errors Form and nothing is displayed.


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Run the Autoinvoice Program now.

Navigation Path.


ControlsRequestsRun

Choose Autoinvoice master program and Pass the Following Parameters.

Invoice SourceChoose from LOV as ORDER ENTRY

Default DateTodays Date 10 Nov 2003

Sales Order numberLow and High 51823

Based Due Date on Trx Date Set to Yes.

Click Ok Button and Submit Button. This will generate a concurrent request

ID.


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Concurrent Request ID 1774355 is submitted. View the Concurrent Request

to see it is completed Normal.


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The Concurrent Request ID 1774355 is completed Normal. We can view the

Concurrent request ID 1774357 to view the Autoinvoice validation Report to

check is the transaction Imported successfully or not.


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The Auto-invoice Validation Report completed successfully.


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23. View Sales Invoice, Create Receipt, and Remittance and view

Account Balances

We can view the Sales Invoice created in Accounts Receivables Transaction

Form.

Navigation Path.


TransactionsTransactions.

Query for the Sales Order number 51823 by inputting the Value of the Sales

order number in the reference field. Sales Invoice 10008669 is created.

Click on Line Items to view the Details of the Lines.


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Line Item shows two Quantities of Dell computer finished goods have been

sold for USD 6000 each.


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We have to receive Money against the Invoice Created above.

Navigation Path


ReceiptsReceipts


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Click on the form and enter a Receipt for the Sales Invoice created.

Navigation Path


ReceiptsReceipts

Enter a Receipt number. The Currency field is defaulted is defaulted from

Functional currency and the Receipt Date and GL Date are defaulted from

System Date and choose the Payment method of Manual Remittance.

Enter in Transaction Number field 10008669, which is the Sales Invoice

number against which cash is received and Click on the Applications Button.


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The Applications For opens up and check whether the Apply to field is

showing the invoice number 10008669 and amount applied field shows as

6000 USD. Save the Record and close the window.


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We can go to Collections Form and view the amount due from the customer.

Navigation Path.


CollectionsAccount Details


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Click on the Account Details form and enter the Customer number 2239 in

the number field. Click on the Find Button


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Account details Window opens for the IBM Corporation and shows the

Balance due as 6000 USD.

Invoice Balance 12000 (Invoice Number 10008669)

Receipt - 6000 (Receipt Number 1645)

Balance Due form the Customer is 6000 USD.


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Next, we have to remit the check we have received from IBM Corporation

Navigation Path


ReceiptsRemittance


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Click on the Remittances Form and enter the following details

Remittances Form opens and Currency, Batch Date, GL Date and

Remittance method defaults. Enter the Payment method Manual Remittance

and choose the Bank Account Number from the List of Values. Click on

Auto Create Button


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Create Remittance Batch Window Opens and enter the Receipt Number

1645 and the Customer Number 2239 and enable the Create, Approve and

Format check box. Click on OK Button and a message pops up Submit 1

Batches for Format. Click on Yes Button.


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This Generates a Concurrent request and generates the Automatic

Remittances Execution Report.


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Now, You go to Receipts screen and Query for the Receipt Number 1645,

the status of the Receipt might have changed from Confirmed to remitted.

Navigation Path


ReceiptsReceipts

Query for Receipt number 1645


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24. Receipt Reconciliation

Next, we need to clear the Receipt in Cash Management.

Navigation Path

Cash Management, Vision Operations

Bank ReconciliationBank Statements


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Click on the Form and Click on New Button. Enter the Account Number and

Date. Enter Receipts as 6000 in Control Totals. Click on the Lines Button.


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Click on New Button. Bank Statement Line Window Opens up. Enter the

Line Number 1 and choose the Type as Receipt and Enter the amount as

6000 and save the record. Close the Window.


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Next Step is to choose the Receipt advice and reconcile with the Bank

Statement we created.

Navigation Path

Cash Management, Vision Operations

Bank ReconciliationManual ClearingClear Transactions


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Click on the Clear Transactions form and enter the following.

Find Transactions Window opens up and the radio button detail is enabled

and uncheck the Payment and Miscellaneous check box. Click on the Find

Button.


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Clear transactions Form opens up and enable the check box on left-hand side

for the receipt number 1645 and click on clear Transaction. This will clear

the Transaction and reconcile the Transactions with the bank Statement.


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Now, Log on to receivables Responsibility and check the status of the

Receipt 1645. This will have the Status of cleared.

Navigation Path


Business Process Flow in Oracle Applications (2).pdf

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