Overview of Application Integration
Inventory
Order Management and Purchasing, as well as other Oracle application,s can use items defined in Inventory. If the item is designated as a planned item, demand can be generated in the form of requisitions and sent to Purchasing where purchase orders or blanket releases can be created to replenish inventory levels.
Order Management
Customer purchase orders can be recorded in Order Management. Goods are shipped to customers as defined by the sales order. After goods are shipped, customer invoices are sent to Receivables and inventory levels are updated. Any customers that are set up in Order Management are shared with Receivables and vice versa.
Receivables
Receivables maintains information about invoices received from Order Management and other sources. Invoices are sent to customers who respond by sending payments. You can use Receivables to record receipts against customer accounts. Receivables, revenue and cash receipts are created in Subledger Accounting and then transferred to General Ledger.
Purchasing
Purchasing captures accounting information on requisitions and purchase orders. Purchase orders are sent to suppliers who respond by delivering goods or services and sending invoices that are processed in Payables. During the accounting period, accruals for goods set to accrue a liability on receipt are sent to General Ledger. At the end of the accounting period, accruals for goods and services set to accrue a liability at period end can be sent to Subledger Accounting and then transferred to General Ledger. Any suppliers set up in Purchasing are shared with Payables and vice versa.
Payables
Supplier invoices are entered into Payables and if appropriate, matched to purchase orders in Purchasing. During the matching process, the invoice distribution is copied from the purchase order (in the case of an expense) or the appropriate liability account (in the case of an inventory item). Payables expenses and payments are created in Subledger Accounting and then transferred to General Ledger.
Invoices for asset purchases can be interfaced to Assets.
Assets
Assets from Payables and other sources are maintained in Assets. Assets are added, processed, depreciated and eventually retired. At the end of each asset period, accounting information is created in Subledger Accounting and then transferred to General Ledger.
Subledger Accounting
Subledger Accounting is a rule-based accounting engine that centralizes accounting for Oracle E-Business Suite products and provides an accounting toolset and repository for third-party applications. Together with the new ledger support, it enables support of multiple accounting requirements concurrently in a single instance. Different accounting regulations can be satisfied by maintaining and applying different sets of rules to different sets of transactions; or accounting for the same transaction with multiple methods. By maintaining a full link between the transaction and accounting data, it allows powerful reconciliation and auditing capabilities.
Accounting entries from subledger applications, such as Payables and Receivables, are created in Subledger Accounting and then transferred to General Ledger.
General Ledger
General Ledger receives accounting information from many Oracle applications. Once accounting information is imported, journals can be posted and account balances updated. When implementing Oracle Applications, creating a ledger consisting of an accounting calendar, currency and chart of accounts is one of the first steps that must be completed before setting up other applications.