Enterprise Resource Planning (ERP) with Oracle E-Business Suite R12

By Omugbe prisca - May 07, 2020

Years back, with the development of software applications to manage the business processes for organizations, what we have were silo or standalone applications residing in one department or the other without any integration between them. The accounts department will acquire accounting software, supply chain department will have its own, etc. While those applications serve the needs of various departments, they were of little use to management who wants information on what is happening in various department, information that is residing as data in various databases used by various departments. We also have redundant data in various department applications. The fact that they cannot talk to each other means they cannot share data, so each application database stores all the data it needs.

The challenges mentioned above and many more led to the development of ERP applications. Enterprise Resource Planning (ERP), according to Wikipedia “is the integrated management of the main business processes, often in real-time and mediated by software and technology” (Wikipedia, 2020). According to Oracle.com, “Enterprise resource planning (ERP) refers to a type of software that organizations use to manage day-to-day business activities such as accounting, procurement, project management, risk management, and compliance, and supply chain operation” (Oracle, 2020).

So, with this integration, we now have a suite of applications that are installed as a single application and yet implemented in such a way that every department in an organization can use the application and the relevant modules that relate to their day to day work. In a typical procurement to payment cycle in an organization, organization face the following challenges:
  • Managing vendors information & performance
  • Complying with regulations regarding procurement
  • Enforcing controls and checking compliance
  • Ensuring a competitive bidding process
  • Authorization and approvals for procurement and expenditure
  • Budgetary controls on expenditure

These challenges listed above and many more can be solved using an ERP application like Oracle E-Business Suite (EBS). This single enterprise application cuts through IT, internal audit, procurement, store, warehouse, cashier, payables, finance, final account, management, human resource, etc. A single transaction process can involve all these departments and they can do it without leaving their office and at each point time, they can know where a particular transaction is so it can be escalated if need be.

Every organization wants to manage their procurement activities very well, they want to get the best prices for items or services they buy, they want to deal with vendors that will not give them issues, they want to ensure that the items and services they are receiving are good. The bigger the organization, the more challenging it is to manage this procurement process manually or use an application that does not cover the full cycle of the process from beginning to end. A typical example of Oracle EBS transaction is what we called Procure-to-Pay (P2P).

With the deployment of ERP application like Oracle E-Business Suite R12, organizations can gain the following:
  • Improved business insight into what is going on with procurement activities
  • Enhanced collaboration between user departments, procurement, and suppliers
  • Improved efficiency
  • Enforcement of an organization's policy on procurement and payment
  • Reduce risk through financial control and greater auditing of activities

Introduction to Oracle ERP Application  Procure to Pay Process (P2P)

Demonstration on Oracle ERP Application Procure to Pay (P2P) Process

Written by Echezona Obiora

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