Author: Lakshita Betala

Why Project-Driven Organizations Bleed Cash and How Oracle PPM Stops It

Posted on by Lakshita Betala

Why Your Procurement Problems Aren’t Really About Procurement

In large project-driven organizations, especially EPC, infrastructure, and government-funded programs, procurement teams often get the blame when things go wrong. But here’s the truth: most procurement failures aren’t caused by poor sourcing capability.

The real culprit? Not knowing what you need, or when you need it.

Project plan demand. Procurement sources materials. Finance manages cash. And leadership tries to make sense of it all. When these teams don’t talk to each other through a shared system, the consequences are painfully familiar. Excess inventory piling up in warehouses, rushed last-minute purchases, constant rescheduling, and cash tied up in materials nobody needed yet.

Oracle Project Portfolio Management (PPM), when used properly with its Project-Driven Supply Chain capability, acts as the missing control tower. It connects project demand, procurement planning, material management, and financial visibility in one place. The result isn’t just better delivery. It’s a measurable improvement in cash flow.

Getting Started: What You Need to Set Up

Before the benefits kick in, there are a few foundational steps to configure Oracle PPM for Project-Driven Supply Chain:

A. Turn on the Feature In the Offerings work area, enable Project-Driven Supply Chain at the offering level under Manufacturing and Supply Chain Materials Management.

B. Enable Inventory Tracking by Project Go to Setup and Maintenance > Manage Inventory Organizations (under Manufacturing and Supply Chain Materials Management > Facilities). Search for your inventory organization, open Manage Organization Parameters, and check Enable inventory tracking by project. Repeat for any additional inventory organizations.

C. Set Up Default Expenditure Types In Setup and Maintenance, navigate to Manage Default Expenditure Types (same offering and functional area). Assign a default value for each field and save.

D. Classify Project Organizations Every inventory organization enabled for project-driven supply chain must be classified as a Project Expenditure Organization, and it must belong to the hierarchy defined in your Configure Project Accounting Business Function task.

To do this:

  • Use Manage Project Organization Classifications to classify the organizations
  • Use Manage Organization Trees to add them to the right hierarchy
  • Flatten the HR organization and set its status to Active
  • Run the Maintain Project Organization process

Once this foundation is in place, the real value begins.

1. Making Projects Your Single Source of Truth for Demand

Procurement exists to fulfill demand. That’s obvious. What’s less obvious is how often demand lives in too many places at once: spreadsheets, email threads, disconnected planning tools, informal conversations.

PPM fixes this by making the project itself the authoritative source of demand.

  • Project schedules tell you when and where materials and services are needed
  • Work Breakdown Structures (WBS) define what is needed
  • Resource and cost plans define how much is needed

Assigning inventory items as project resources means material planning no longer starts in the warehouse. It starts in the project plan. Quantities, costs, and timing are defined during budgeting, and consumption is tracked against task execution.

Once items are assigned as resources, you can budget for them at the project level, validating quantities and costs during baseline approval and tracking variances at the material level.

Better still, each inventory item can be tagged to a specific project, WBS element, and task. This means full traceability of what was used where, clear visibility into project-wise allocations, and no more materials quietly migrating from one project to another.

And because items are linked to project tasks, purchase requisitions can align with task start dates. Procurement lead time is calculated backward from the execution schedule, so materials arrive when the site is actually ready. Not before, not after.

This alone eliminates three of the most common cash traps: early purchases that freeze working capital, emergency buys driven by scheduling misalignment, and idle stock accumulating in the warehouse.

2. Planning Procurement Across the Portfolio, Not Just Per Project

Most organizations plan procurement project by project. That’s a missed opportunity.

PPM gives procurement teams a portfolio-wide view, which means they can:

  • Spot common materials needed across multiple projects
  • Plan bulk purchases instead of ten separate orders for the same item
  • Align sourcing strategies with broader organizational priorities

Instead of fragmented orders with fragmented pricing, you get consolidated sourcing, better vendor negotiations, and less administrative overhead. The savings are real and repeatable.

3. Handling Change Without Derailing Procurement

Project changes happen. Scope shifts, timelines move, budgets get revised. The problem isn’t the change itself. It’s when procurement keeps running on the old plan while the project has already moved on.

With PPM, when a project schedule changes:

  • Material requirement dates update accordingly
  • Procurement plans can be realigned proactively
  • Open commitments can be reviewed, deferred, or cancelled before damage is done

The result is a procurement function that adapts with the project, not one that reacts after cash has already been wasted on early deliveries or penalties paid for misaligned timelines.

4. Leaner Inventory, Less Hidden Cash Drain

Excess inventory is one of the quietest cash drains in project-based organizations. It often doesn’t show up as a visible problem until someone does a physical count, by which point the cash is already locked up.

PPM improves this by linking every material to a project task, tracking actual consumption against what was planned, and flagging unused or surplus stock.

With that visibility, teams can:

  • Reallocate materials from one project to another
  • Avoid duplicate purchases across the portfolio
  • Reduce warehouse holding costs

When material movement is driven by real project priorities instead of guesswork, inventory gets leaner and cash gets freed up.

5. Giving Finance Real Visibility Before Cash Leaves the Building

For CFOs, this might be the most important part.

PPM isn’t just a project tracking tool. It’s a financial control mechanism. By connecting project budgets, procurement commitments, and actual costs:

  • Procurement commitments are visible before cash is spent
  • Finance can forecast cash outflows with much greater accuracy
  • Leadership can balance funding intentionally across the portfolio

This means the organization can defer spending on lower-priority projects, fast-track approvals for high-value ones, and manage working capital with genuine discipline, not just hindsight.

6. From “Did We Buy It Cheaply?” to “Did We Buy the Right Thing?”

This is where the conversation in most organizations needs to shift.

Procurement’s value isn’t just in squeezing unit prices. It’s in making sure the right materials are purchased for the right project at the right time. When procurement decisions are guided by portfolio priorities, organizations fund projects that generate faster returns, delay or cancel low-value initiatives, and allocate capital more strategically.

That’s the difference between procurement as a transactional function and procurement as a value-driven partner to the business.

7. What All This Adds Up To

When Oracle PPM is genuinely embedded across procurement, planning, rescheduling, and material management, the benefits reinforce each other:

  • Lower procurement costs
  • Reduced inventory and carrying costs
  • Fewer project disruptions
  • Better cash flow and working capital
  • Tighter alignment between projects, procurement, and finance

Organizations that treat Oracle PPM as a strategic enabler, not just a project tracker, unlock real, compounding financial and operational advantages.

8. What the Numbers Look Like

Based on industry research and market benchmarks, organizations that adopt mature PPM practices typically see:

  • 5–10% reduction in material procurement costs
  • 15–25% reduction in excess or idle inventory
  • 20–30% reduction in emergency and off-contract buying
  • Improved working capital through better-planned, deferred spending

For CFOs, the biggest win isn’t just cost reduction. It’s predictable, controlled cash outflow instead of post-facto damage control.

A Final Thought

In an environment of tight margins and growing delivery complexity, cash is king. And right now, in too many organizations, cash decisions are being made reactively, driven by urgency on site rather than strategy in the boardroom.

Without Oracle PPM: Projects create urgency. Sites drive purchasing. Finance reacts after the cash is already gone.

With Oracle PPM: Projects define demand. Procurement plans ahead. Finance controls cash before it leaves the organization.

When Oracle Fusion Projects drive procurement decisions, and portfolio priorities guide resource allocation, the entire organization moves faster, spends smarter, and delivers more value.

That’s not just a technology upgrade. It’s a fundamentally better way to run the business.

Beyond the Black Box: Implementing BYOML in Oracle EPM

Posted on by Lakshita Betala

Opening Preface

Many consultants think you need OCI Data Science or complex API integrations to do this. You do not. Oracle EPM Planning has a native engine that can read PMML (Predictive Model Markup Language) files directly. It embeds your custom Python logic within the EPM calculation engine, making Oracle EPM BYOM (Bring Your Own Model) a practical and accessible capability.

The gap between a Data Scientist’s Python notebook and a Planner’s web form is where most Machine Learning projects go to die. We have the data. We have the technology. What we are missing is the bridge. This isn’t just a technical tutorial; it’s a blueprint for turning Oracle EPM from a passive reporting tool into an active, predictive powerhouse within modern Oracle EPM deployment options.

Phase 1: The Architecture (How it actually works)

  1. Extraction: You export 4-5 years of historical data (Salary, Headcount, Attrition) from EPM or HCM as part of your broader Oracle EPM cloud setup.
  2. Training (The “Data Science” Part): You use Python (Pandas/Scikit-Learn) or R on your local machine to train a model (e.g., Linear Regression, Random Forecast, or Neural Network), independent of core Oracle EPM infrastructure.
  3. The Bridge: You export that trained model as a .pmml file (using the sklearn2pmml library).
  4. Ingestion: You upload the .pmml file to EPM Cloud (under IPM > ML Models) to enable the Oracle EPM BYOM workflow.
  5. Execution: EPM automatically generates a Groovy Rule based on your model. When a user runs this rule, EPM passes the current form data to the PMML engine and writes the prediction back to the cell, contributing to overall Oracle EPM performance optimization.

Phase 2: The Step-by-Step Implementation

Step 1: The Python Work (Local Machine)

Scenario: Predicting “Employee Attrition Risk” based on “Salary” and “Tenure.”

The Code Snippet (Python):

Step 2: Import into Oracle EPM

Navigation: Go to IPM -> ML Models.

  • Action: Click Import and drag your Attrition_Model_v1.pmml file here as part of the Bring Your Own Machine Oracle EPM process.
  • This is the critical technical part. EPM will ask you to map the PMML “Inputs” to EPM Dimensions
  • PMML Input OWP_Basic Salary -> EPM Member OWP_Salary.

Test the model:

  • The Confirmation message is displayed. Two Groovy rules are generated for each ML model definition.
  • No complex Groovy coding required. The system wraps the ML model in a Groovy wrapper automatically.
  • At the confirmation message, click Yes.

You can review the generated rules in Calculation Manager. The Groovy rules define the name and location of the PMML file, along with input and output based on the mapping you defined.

Step 4: The User Experience

  • Attach this rule to an Action Menu on a Web Form.
  • The Test: Enter a low salary for an employee. Right-click -> Run Prediction.
  • The Result: The “Predicted Attrition” cell automatically updates to number in percentage format (or a probability score) based on your custom Python logic, further supporting Oracle EPM performance optimization.

Phase 3: The “CFO Value” (Why do this instead of Auto Predict?)

  1. Transparency vs. Black Box:
  • Generic Way: Oracle’s Auto Predict uses standard time-series algorithms. You don’t know why it predicted what it predicted.
  • Our Way (BYOML): You know exactly which variables (Inflation, Market Competitiveness, Commute Time) are driving the prediction because you built the model using Oracle EPM BYOM.
  1. Specific vs. Generic:
  • Every company is different. An ARIMA, SARIMA model might work for Retail sales but fail for IT Attrition. BYOML allows you to choose the exact algorithm (Random Forest, Decision Tree) that fits your specific data pattern within flexible Oracle EPM deployment options.
  1. IP Protection:
  • You are bringing your organization’s intellectual property (your proprietary data models) and embedding them into the financial planning tool, strengthening control across Oracle EPM infrastructure.

Summary: Your Data, Your Rules

Every company is unique. So why would you trust a generic algorithm to predict your specific future?

This architecture proves that you don’t need to choose between “easy” and “accurate”. You can build a model that fits your specific data pattern – whether it’s for attrition, sales, or manufacturing and embed it directly where decisions are made using Bring Your Own Machine Oracle EPM capabilities.

You have the historical data. You have the platform. Now, you have the logic to turn “What happened?” into “What’s next?” within a scalable Oracle EPM cloud setup.

Turn your EPM application from a passive reporting tool into an active predictive powerhouse. Don’t just plan for the future – define it.

From Standard to Standout: Reinventing Maintenance

Posted on by Lakshita Betala

In today’s industrial landscape, maintenance has grown into more than just a support function. It directly impacts uptime, revenue protection, regulatory compliance, and customer experience.

For asset-intensive industries like utilities, district cooling, telecom, infrastructure, and manufacturing, unplanned downtime is never just a technical issue; it’s a financial event.

At Orbrick, we believe maintenance transformation goes beyond simply implementing software. It’s about architecting intelligent ecosystems powered by a modern maintenance management system that enable:

  • Real-time decision-making
  • Predictive insights
  • Operational resilience
  • Financial optimization

Through a recent Oracle Fusion maintenance implementation, integrated with a custom application built on Oracle Visual Builder Cloud Service (VBCS), we helped a large asset-driven enterprise move from reactive firefighting to intelligent, AI-enabled, and financially optimized maintenance operations.

The Ground Reality: What Traditional Maintenance Struggles With?

The technology existed, but the adoption did not.

Before the transformation, the organization faced common yet critical challenges that many legacy maintenance management systems struggle to solve.

  1. Fragmented Work Intake:

Work requests came through emails, spreadsheets, calls, and legacy tools. 

Result: 

  • Lost or duplicate work orders 
  • Delayed approvals 
  • No centralized visibility 
  1. Reactive Maintenance Culture:

Without structured preventive frameworks or predictive maintenance solutions: 

  • Assets failed unexpectedly 
  • Emergency repairs increased 
  • Spare parts planning was inconsistent 
  1. Limited ExecutiveVisibility: 

Leadership lacked: 

  • Live dashboards 
  • SLA monitoring 
  • Cost transparency 
  1. Poor Field UserExperience: 

Technicians struggled with: 

  • Complex ERP screens 
  • Non-mobile-friendly interfaces 
  • Slow transaction entry 

Oracle Fusion Maintenance: The Digital Backbone

Oracle Fusion Maintenance provided a powerful cloud-native foundation for enterprise management. 

Key capabilities included:   

  • Asset hierarchy and classification 
  • Preventive and corrective work orders 
  • Inventory and spare parts integration 
  • Cost capture and financial traceability 
  • SLA tracking and reporting 

However, as we moved deeper into the implementation, an important design consideration emerged

Building a Lightweight Operational Layer on Top of Oracle Fusion

In large maintenance driven organizations, thousands of operational users interact with enterprise systems as part of their daily activities. While Oracle Fusion Cloud provides a comprehensive and robust ERP environment, many field users typically perform a smaller set of operational tasks such as raising work requests, updating task status, logging time, and recording material usage.  

This prompted an important design consideration “how can organizations provide a simplified operational experience for field teams while ensuring that the ERP platform continues to function as the system of record?” 

Rather than approaching this purely from a system access perspective, the solution was to introduce a lightweight operational layer built using Oracle Visual Builder Cloud Service, designed in alignment with Oracle Redwood UX principles. This layer complements the ERP by delivering a focused interface tailored for day-to-day maintenance operations. During implementation, this approach enabled several capabilities that are not always easily achievable through standard seeded ERP screens, such as: 

  • Simplified role-based interfaces tailored for technicians, supervisors, and external operational teams 
  • Mobile-friendly task execution flows enabling faster updates from plant locations or field environments 
  • Unified operational dashboards combining work requests, task queues, alerts, and maintenance insights in one view 
  • Custom approval flows aligned with organizational maintenance governance 
  • Guided workflows and contextual forms that streamline activities like work request submission and status updates 
  • Cross-department visibility allowing multiple operational teams to collaborate within a single interface 
  • Flexible UI layouts and validations designed around real operational processes rather than generic ERP screens 

The intent was not to replace ERP functionality, but to extend it thoughtfully allowing Oracle Fusion Cloud to remain the enterprise system of record, while the VBCS application delivers a focused, Redwood-based operational experience for field users. This architecture helps organizations balance usability, scalability, and operational efficiency, while maintaining strong enterprise governance. 

This architectural approach also became the foundation for the Orbrick design philosophy favouring extensions over core ERP customization.

The Orbrick Strategy: Extension Over Customization

Instead of customizing the ERP core, we adopted an extension-first architecture. A centralized, role-based Custom Maintenance Application was built using Oracle Visual Builder Cloud Service (VBCS) and designed in alignment with Oracle Redwood UX principles to deliver a modern and intuitive operational experience. In this model, Oracle Fusion Cloud continues to function as the system of record, while the VBCS application serves as the operational interface for day-to-day maintenance activities used by technicians, supervisors, and cross-department teams. 

Key principles of the approach: 

  • ERP as the Source ofTruth : Core enterprise data such as assets, locations, work orders, and reference masters continues to reside in Oracle Fusion, ensuring governance, traceability, and compliance. 
  • Redwood-Based OperationalExperience : The application follows Redwood UX design standards to provide a consistent, simplified, and mobile-friendly interface aligned with modern Oracle applications. 
  • Replication & Synchronization withFusion : Operational data used in Redwood-based screens is replicated from Oracle Fusion and periodically synchronized, ensuring users work with updated information while maintaining ERP data integrity. 
  • Focused OperationalAccess : Field technicians and operational users interact through the VBCS interface for activities such as raising work requests, updating status, logging time, submitting approvals, and tracking tasks, while ERP continues to support core enterprise processes. 
  • Streamlined UserInteraction :The application is designed to reduce the number of clicks required for common maintenance activities, enabling technicians to complete operational tasks more quickly and efficiently. 
  • Context-BasedValidations :User-defined validations at the page level ensure that required operational information is captured accurately before transactions are submitted, supporting data quality and process consistency. 

The result is a clean architectural separation where Oracle Fusion Cloud remains the enterprise backbone and the Redwood-based VBCS layer provides a scalable and user-friendly operational platform aligned with real maintenance workflows used during the implementation project.

Before:

  • All technicians + supervisors → Full Oracle Fusion licenses

After:

  • Core SCM & planning team → Oracle Fusion licenses
  • Field users → Custom VBCS Maintenance App
  • The approach also contributed to more efficient system utilization and scalable user enablement, allowing operational teams to interact with the maintenance platform in a streamlined way while keeping core enterprise controls within Oracle Fusion Cloud. From a leadership perspective, this supported better resource optimization and long-term platform sustainability, while maintaining enterprise-grade governance, security, and operational visibility. Beyond architecture and platform design, significant focus was placed on ensuring a stable and reliable go-live during the implementation project. Before deployment, the application underwent extensive functional validation, cross-department testing, and operational scenario simulations to ensure a smooth rollout and a bug-free application go-live. 
  •  Key activities included: 
    • Comprehensive User Acceptance Testing (UAT) with maintenance teams, supervisors, and operational stakeholders. 
    • End-to-end process validation covering work request creation, approvals, asset tracking, and reporting workflows. 
    • Performance and usability testing to ensure the application handled real operational workloads efficiently. 
    • Data replication and synchronization validation between Oracle Fusion Cloud and Oracle Visual Builder Cloud Service to maintain data accuracy. 
    • User training sessions and controlled rollout planning to ensure smooth adoption across departments. 
    • As a result, the solution achieved a stable and seamless go-live, with minimal operational disruption and strong user confidence from the first day of production use. 

Real-Time Operational Examples: 

  1. Plant Equipment Maintenance Report

In daily plant operations, technicians can quickly raise a work request through the VBCS application when an issue is observed in equipment such as pumps, chillers, or valves. The request is submitted through the Redwood-based interface and automatically synchronized with Oracle Fusion Cloud, where supervisors review, approve, and convert it into a work order for maintenance execution. 

  1. Field Technician Task Updates and Time Logging

During preventive or corrective maintenance activities, technicians update task status, log work hours, and record material usage directly through the VBCS interface on site. The application then synchronizes these updates with Oracle Fusion Cloud, ensuring that maintenance history, asset performance data, and reporting remain accurate and up to date. 

  1. Traditionally, preventive maintenance activities were scheduled at fixed intervals, such as every 90 days, regardless of the actual operating condition of the asset. While this ensured regular inspection, it sometimes resulted in maintenance being performed even when equipment was functioning optimally. With improved data visibility and integration within Oracle Fusion Cloud, historical maintenance records, meter readings, and asset performance data can be analysed more effectively. This enables maintenance teams to make better-informed decisions on when intervention is truly required, rather than relying solely on static schedules.

Together, these operational scenarios demonstrate how the solution supports practical day-to-day maintenance activities, while maintaining the reliability and governance of the enterprise ERP platform. 

Hybrid Architecture Overview

This hybrid architecture ensured that operational simplicity for field users could coexist with enterprise-grade financial and asset governance inside the Oracle Fusion maintenance architecture.

Operational Outcomes Observed: 

  • Reduction in unnecessary preventive maintenance activities 
  • Improved asset availability and operational uptime 
  • Better alignment between spare parts usage and actual maintenance needs 
  • More balanced allocation of maintenance workforce

Impact:

  • 30–40% reduction in unnecessary preventive jobs
  • 20–30% improvement in uptime
  • Reduced spare part overstocking
  • Optimized labour allocation

Maintenance shifted from calendar-driven to intelligence-driven.

Measurable Outcomes Delivered  

Outcome  Business Impact 
Reduced Asset Downtime  Higher service reliability 
Higher Preventive Ratio  Lower emergency cost 
Improved Productivity  Faster job closure 
Real-Time Visibility  Proactive decision-making 
License Cost Optimization  Controlled subscription growth 
AI-Ready Framework  Future predictive scalability 

The Hidden Gap Between Your Warehouse and Your General Ledger

Posted on by Lakshita Betala

The Month-End Panic 

What if I tell you that nearly 4 out of 10 companies are dealing with numbers that just don’t line up, that is their Inventory Valuation and Trial Balance tell two different stories. 

It’s the last day of the month. Sarah, the Finance Manager, is reviewing the Trial Balance when she notices something alarming: the Inventory Asset Account shows $2.3 million, but the Inventory Valuation report from SCM shows $2.5 million. With the board meeting scheduled for tomorrow morning, she frantically calls Karan, the SCM lead. “Why don’t our numbers match?”

This happens in almost every Oracle Fusion project at month-end. Supply Chain looks at Inventory Valuation; Finance looks at the Trial Balance, and when the numbers don’t line up, things get messy. The close slows down, and auditors get uneasy. The funny thing is that both teams are looking at the same inventory but just from different perspectives.

How Inventory Valuation Really Works?

Imagine your warehouse as a piggy bank. Inventory Valuation tells you how much money is sitting inside that piggy bank at any given moment. It’s calculated as: Quantity × Cost.

In Oracle Fusion, this value depends on your costing method:
• Standard Costing: Like pricing items at a fixed rate. A widget always costs $10, regardless of what you paid.
• Average Costing: The cost fluctuates with each purchase. Buy widgets at $10, then at $12? Your average cost is now $11.
• Actual Costing: Actual costing, like stacking cans on a shelf and selling from the front.

The valuation comes alive through transactions: purchase receipts, transfers, WIP completions, and sales issues. However, until Cost Accounting runs and completes, these transactions remain financially “invisible.” 

What is Trial Balance?

The Trial Balance is Finance’s scoreboard, a snapshot of all ledger accounts proving that debits equal credits. For inventory, this means tracking accounts like:
• Inventory Asset Account (your warehouse value)
• Work-in-Process (WIP) Account
• Receipt Accrual/Clearing Accounts
• Cost of Goods Sold (COGS)

But here’s the catch: inventory transactions don’t magically appear in the General Ledger. They must travel through a pipeline:

Inventory Transaction → Cost Accounting → Subledger Accounting (SLA) → GL Transfer → GL Posting → Trial Balance

Any break in this chain? You get a mismatch. 

The Critical Connection

Think of Inventory Valuation as the source system and Trial Balance as the financial reflection. At month-end, both should tell the same story. When they don’t, it’s usually because: 

Common Culprits Behind the Mismatch 

  1. Cost Accounting Hasn’t Run
    Example:A manufacturing company receives 1,000 units of raw material on Jan 31st at 4 PM. The warehouse team sees the inventory, but the costing team hasn’t processed it yet. SCM shows updated quantities, but no accounting entries exist. Finance closes the books and the mismatch created. 
  1. SLA Not Transferred or Posted
    Example:Even after Cost Accounting is completed, journal entries might be stuck in the SLA queue or awaiting manual posting. The entries exist but haven’t reached GL. It’s like writing a check but not depositing it. 
  1. Backdated Transactions
    Example:On Feb 5th, someone discovers a missed receipt from Jan 28th and enters it with a backdated transaction. Inventory Valuation updates retroactively, but the January GL period is already closed. Result: January Trial Balance is now “wrong.” 
  1. Manual Journal Entries
    Example:Finance makes a year-end adjustment directly in GL without a corresponding inventory transaction. The Trial Balance changes, but SCM remains unchanged. Now you’re comparing apples to oranges. 
  2. User Errors in Transaction Entry
    Example:During a miscellaneous transaction, a user accidentally selects the Inventory Account instead of the Offset Account. Or they charge an expense purchase to the wrong account. Small mistakes, massive reconciliation headaches. 
  3. Wrong SLA Configuration
    Example:During implementation, the SLA rules were set up incorrectly. The Inventory Valuation Account is being used in multiple accounting events where it shouldn’t be (like expense requisitions or non-inventory transactions). Now every purchase order receipt, regardless of type, hits the inventory account. The result? The Trial Balance shows inflated inventory values that include items never meant to be capitalized. This configuration error compounds month after month until someone questions why office supplies are sitting in inventory assets.
     
  4. Transactions Stuck in SLA Errors
    Example: A high-volume distribution center processes 500 transactions daily. During month-end, the team discovers 25 transactions stuck with SLA errors like missing account combinations, invalid cost centers, or data validation failures. Each error requires analysis and correction before the transaction can flow through. Meanwhile, these “stuck” transactions inflate Inventory Valuation but never reach the Trial Balance, creating a growing gap that frustrates both teams. 
  5. Costing Category Changes Mid-Period
    Example:Mid-January, the procurement team reclassifies “Packing Materials” from Raw Materials (Account 1510) to Consumables (Account 1520) to better align with accounting standards. The item had 5,000 units on hand valued at $25,000 in Account 1510. Oracle doesn’t retrospectively revalue existing inventory, that is those 5,000 units stay in Account 1510. However, all new receipts starting January 15th flow into Account 1520. By month-end, the same item appears across two valuation accounts: $25,000 in 1510 and $18,000 in 1520. The item-level Inventory Valuation report shows $43,000 total, which matches GL perfectly but only when you view it by account, not by item. Finance reconciling by item sees apparent mismatches and raises audit flags. 

Best Practices: How to Stay Aligned 

  1. Complete costingbeforerunning SLA – No exception. 
  2. Transfer and post all journals before closing GL-Create a checklist. 
  3. Avoid manual GL entries for inventory,if you must, document them meticulously.
  4. Perform monthly reconciliation as standard operatingprocedurenot firefighting. 
  5. Coordinate SCM and Finance period closesmake it a joint accountability.
  6. Use reconciliation reports religiously:
  • From SCM: Inventory Valuation Report, Cost Accounting Distribution DetailsReport 
  • From Finance: Account Analysis Report, Trial Balance Report

Sarah’s Resolution

Back to Sarah’s 11:45 PM panic. After digging deeper with Karan, they discovered:
• Cost Accounting had run, but journals weren’t posted ($150K stuck)
• A backdated receipt from last week added $50K to valuation but not to January GL

Within 30 minutes, they posted the pending journals and documented the backdated transaction for February correction. By midnight, the gap narrowed to an acceptable variance with clear audit trail.

The lesson? Mismatches aren’t system failures; they are process gaps. 

Conclusion: Building Confidence Through Alignment

Inventory Valuation and Trial Balance reconciliation isn’t just a month-end ritual, it’s a litmus test for how well your SCM and Finance teams work together. Oracle Fusion provides robust integration, but technology alone won’t save you. What will?

• Correct setup and configuration
• Disciplined process execution
• Cross-functional coordination
• Timely resolution of exceptions

When your Inventory Valuation aligns with your Trial Balance, you’re not just closing books, you’re building organizational confidence. Management trusts the numbers. Auditors trust the system. And Sarah? She gets to sleep before midnight. 

The Complete Guide to Data Cleaning in Oracle Integration Cloud

Posted on by Lakshita Betala

Introduction

How much time does your team lose every month fixing failed OIC runs caused by duplicate suppliers, missing employee data, or invalid codes? 

More than you realize. Most of these failures occur due to poor data quality. Oracle Integration Cloud data cleaning is the process of identifying and correcting inaccurate, incomplete, or irrelevant records from your system.
Oracle Cloud data cleansing ensures accurate reporting, maintains compliance, and enables seamless integration between Oracle modules, helping your integrations run smoothly from the start.

Key Data Cleaning Techniques

Concept and Techniques of Imputation

Imputation techniques for enterprise data are critical for handling missing data by replacing null or blank values with estimated or representative ones. Instead of discarding incomplete records, imputation ensures that valuable information is retained for analysis and model training. 

Common imputation techniques include: 

  • Mean/Median/Mode Imputation: Replaces missing numeric or categorical values with the mean, median, or mode of the respective attribute. 
  • K-Nearest Neighbors (KNN) Imputation: Uses values from similar records (neighbors) to fill missing fields. 
  • Regression Imputation: Predicts missing values using regression models based on other correlated features. 
  • Multiple Imputation: Generates several imputed datasets to account for uncertainty, then combines results for more robust estimates. 

These techniques improve the accuracy and reliability of data pipelines, especially within Oracle Integration Cloud workflows, where clean and complete data ensures seamless integration and model accuracy. Handling missing data in Oracle Integration Cloud is essential for maintaining data integrity across all enterprise systems. 

Key data cleaning techniques include handling missing values, removing duplicates, standardization, normalization, outlier detection, and validation. These techniques ensure consistency, accuracy, and trust in enterprise data used within Oracle applications. 

Figure 1 illustrates the state of raw, inconsistent data before cleaning, compared to standardized and reliable data after cleaning. In the Oracle OIC context, this transformation ensures that downstream integrations receive only valid data, minimizing errors in ERP or HCM flows.

Data Cleaning Lifecycle

The data cleaning lifecycle in OIC follows clear stages that ensure reliability at every step.

Figure 2 highlights the cycle of data collection, profiling, cleaning, validation, and deployment. In Oracle OIC, this means data is profiled and validated before integration, reducing downstream reconciliation efforts.

Integration with Oracle Cloud Applications

Data cleaning provides maximum benefit when integrated with Oracle’s core modules, including ERP, HCM, SCM, and CX.

Figure 3 demonstrates how the central data cleaning engine connects seamlessly with ERP, HCM, SCM, and CX. This ensures each module shares consistent, validated data, enabling accurate reporting and end-to-end automation.

Data Quality Dimensions

Definitions of Data Quality Dimensions

  • Accuracy: The degree to which data correctly describes the real-world entity or event it represents.
  • Consistency: The uniformity of data across systems and datasets, ensuring that the same information does not conflict across sources.
  • Completeness: The extent to which all required data is present, without missing or null values.
  • Timeliness: How up-to-date the data is, ensuring it reflects the most current state of business operations.
  • Validity: The adherence of data to defined business rules, formats, and constraints.
  • Uniqueness: Ensures that each record is distinct, without duplication of entities.

Defining these dimensions helps organizations establish measurable data quality standards and enables ongoing monitoring within Oracle environments. Data validation in Oracle Cloud becomes straightforward when these dimensions are clearly defined and measured.

High-quality data can be measured across key dimensions such as accuracy, completeness, consistency, timeliness, validity, and uniqueness.

Figure 4 shows six pillars of data quality. In Oracle systems, ensuring these dimensions reduces redundant entries, missing employee details, or mismatched financial transactions, improving compliance and operational efficiency.

AI/ML Enablement through Clean Data

Clean data powers AI/ML enablement with clean data by reducing noise and ensuring accurate predictions.

Figure 5 presents how clean data feeds into the AI/ML pipeline, ensuring robust feature engineering, reliable training, and accurate predictions. For Oracle OIC, this enables predictive analytics in supply chain, HR forecasting, and customer engagement.

Conclusion

Oracle customers should adopt systematic data cleaning strategies and leverage OIC features to ensure smooth integrations and accurate analytics. A roadmap that incorporates both technical best practices and organizational governance can maximize data value across all business functions.

Area Practice Benefit
Data Entry Control Enforce mandatory field validation for critical attributes (Supplier, Employee ID, Cost Center, BU) Prevents incomplete or invalid records from entering the system
Duplicate Prevention Apply uniqueness and duplicate detection rules Eliminates duplicate suppliers, customers, and employees
Standardization Maintain common naming conventions and code formats across modules Ensures consistency across ERP, HCM, SCM, and CX
Data Audits Schedule periodic automated data quality audits Identifies issues before they affect integrations
Pre-Integration Validation Validate data in OIC before triggering downstream integrations Reduces integration failures
Data Ownership Assign data owners and stewards for master data domains Improves accountability and faster resolution
Monitoring & Alerts Enable OIC fault monitoring and alerts Allows proactive issue handling
Reference Data Control Maintain version-controlled LOVs and lookup tables Prevents code mismatches
User Awareness Train business users on data quality standards Reduces data entry errors

 

Processing Large Data in Oracle ERP System – Extended Guide

Posted on by Lakshita Betala

In the previous part of “Processing Large Data in Oracle ERP System” we discussed code optimization techniques and how they play a crucial role in reports that contain large amounts of data, which is tough to process in ERP systems. We discussed various techniques, like query optimization or query restructuring, or processing it outside of the system, to achieve the expected results.

We discussed how to handle large datasets in Oracle Fusion ERP that lead to slow reports, failed integrations, and performance bottlenecks due to system limits. We also discussed performance improvements; it can be improved in two ways: 

  1. Code Optimization (proper joins, removing subqueries, using views, query tuning)
  2. Data Size Reduction (filters, chunking, bursting)

When Fusion’s transactional system struggles, offloading heavy processing to data warehouses (OAC/BICC) or third-party tools (Power BI, APEX) can significantly improve performance. By applying these techniques, organizations can generate faster reports, avoid timeouts, and maintain smooth business operations as data volumes grow. 
 
While these discussed techniques are helpful to refine the logic and efficiency of queries, performance issues persist if data size is large. As we know, it is hard to process millions of rows of data in cloud-based ERP systems. Even fine-tuned queries also struggled while processing millions of rows.  

Understanding Large Data Set Challenges 

When working with ERP systems like Oracle Fusion, especially reports where data is large, like GL Transactional Balance or Supplier Aging Report. These types of reports, once executed in the blink of an eye, can lead to failure because of the data size.

Unlike traditional databases, Fusion ERP operates on a cloud-based transactional model, where

  • We cannot access the database directly to create indexes or partitions for performance tuning.
  • Resource limits (like BI Publisher data row limits or API payload sizes) are enforced by Oracle.
  • System performance depends heavily on how efficiently data is filtered before execution.

Hence, the idea is not to pull all data at once and process it, but to request and fetch only that data which is necessary.

Key Strategies For Data Size Optimization

  1. Filtering at Source 

One of the most effective ways to reduce data size is to filter data at the source level using query parameters in the report. It is recommended to apply filters in the query to reduce data size.  

For example, as we know, aging reports or trial balance reports generate a huge amount of data. To reduce the data, we can use parameters like from and to date in non-aging reports, and for aging reports, we can restrict data based on suppliers or business units. 

This ensures that the query fetches relevant rows instead of scanning the entire dataset.

 2. Chunking 

One of the features available in Fusion is chunking, allowing data to be processed in smaller and manageable portions. Chunking divides the large output into smaller parts and prevents timeout. 

  • Steps to enable chunking in BI Publisher 
  1. First, we need to enable chunking at the instance level.
    For this: Administrator -> Manage Publisher -> Runtime Configuration -> Set Enable Data Chunking to True. This will enable the chunking option in the data model

2. After enabling it in the runtime configuration, go to the data model, and now we can see the chunking option there. Here, select the data model under “split by” to enable chunking on that data set. 

3. After enabling chunking of the data model, the final step is to enable it at the report level. To enable it at the report level, edit the report and under properties, enable chunking and provide the chunking size (Between 100 MB and 300 MB)

4. This will enable the chunking, and the report output will be divided into size of 300 MB.

3. Bursting Reports 

Bursting allows reports to be split in parts based on recipients or data categories. For example, One large report divided into parts based on supplier, Business Unit. 

  • Advantages 
  1. Speed up report deliveries 
  2. Provides data segregation for better compliance and access control 
  3. Reduce the runtime by executing it in parallel

4. Incremental Reporting

Instead of processing the entire dataset every time, use incremental extraction to fetch only new or changed records since the last run.

  • Maintain a “last run date” parameter
  • Use logic like WHERE last_update_date > :p_last_run_date
  • Combine incremental data with previously stored results in a downstream system (data warehouse, BI tool, etc.)

This drastically reduces report size and execution time while keeping data current.

Conclusion

Handling large datasets in Oracle Fusion ERP requires a balance between code optimization and data size management. 

  • Part 1 focused on writing efficient queries, using views, and optimizing joins. 
  • Part 2 explored how to manage the volume itself through filtering, chunking, bursting, and incremental processing. 

Together, these strategies form a complete framework for high-performance reporting and integration in Oracle Fusion ERP.
By adopting these practices, organizations can ensure scalability, maintain stability, and deliver data faster even as their systems continue to grow.

Transform Your Financial Close with Smart Accrual Clearing in Oracle Fusion

Posted on by Lakshita Betala

Introduction

Tired of managing and reconciling huge data in Accrual accounts? We have designed a strategy to simplify the management of Accrual accounts in Oracle fusion which has saved 500+ hours of the users across multiple clients over a year. 

Accruals act as a bridge between goods/services received and the corresponding invoice receipt. While accruals ensure accurate financial reporting, they must be cleared in a timely and consistent manner to avoid inflated liabilities and misstated books.  

In Oracle Fusion, Accrual Clearing is the process of reconciling and eliminating accrued amounts once the corresponding supplier invoices are matched and accounted for.

Understanding Accrual Clearing in Oracle Fusion

Ms. Teresa, a Finance Controller of a multinational manufacturing company in the US, could not answer the statutory auditors when they asked the reasons for such huge accrual balance. The auditors insisted on clearing the long outstanding balances which do not represent a reasonable actual liability. Being confused with the further steps, she reached out to us to understand how is the accrual clearing process being managed in Oracle Fusion. 

When a Purchase Order (PO) receipt is created for goods or services, Oracle Fusion automatically records an accrual — typically crediting the Accrual account. This entry represents the organization’s obligation to pay the supplier once the invoice is received. 

When the supplier invoice is matched to the PO receipt and accounted for, Oracle Fusion generates the reversal of the accrual, effectively “clearing” the liability from the accrual account to the actual liability account (Accounts Payable). 

  • PO Receipt with Delayed Invoice
    Goods/services are received in one accounting period, but the supplier invoice arrives in a later period. Accruals ensure the expense is recognized in the correct period and later cleared when the invoice posts. 
  • Year-End Cut-Offs
    At financial year-end, outstanding accruals must be cleared promptly in the next period to maintain accurate carry-forward balances. 

Business Cases Requiring Manual Accrual Clearing

Ms. Teresa appreciated the explanation and now she was more curious to understand what the situation would be where she would require a manual clearing to be done as the system automatically clears the accrual balance when the invoice is created. 

She believed only the cases where the Invoice is not received from the supplier would require a manual clearing. But we explained that this is not the only case where manual clearing is required. All Unmatched or Overdue Accruals would be because of following reasons –  

Reasons  Nature of Balance in Accrual Account 
Invoices are not received for a long time even after multiple follow ups with the supplier, but the receipt is created.  Credit Balance 
Over Invoicing is created for the receipt  Debit Balance 
There is a difference between PO and Invoice because of rounding amounts  Either Credit or Debit Balance 
When the Return Receipt is created at difference price than the Receipt because a Change Order is created for PO.  Either Credit or Debit Balance 
If the Receipt and Cost Accounting entries are not matching, then the difference shall be open at the Accrual account.  Either Credit or Debit Balance 
If PO is cancelled after creating a receipt.  Credit Balance 

Flow of Reconciliation activities 

After understanding the reasons for which Manual Clearing is required, Ms. Teresa was so confused with what steps need to be taken to identify such anomalies from such a huge chunk of data. They had not done any such detailed analysis in past 3 years since Oracle Fusion was implemented. Here, we provided the following steps to perform the reconciliation –  

  • Run Accrual Reconciliation Report from Schedule Process
    This report provides the PO-wise list of open accrual balances including the transactions booked for each PO line including Receipt Accruals, Returns, Adjustments, Invoice/Credit Note created. 
  • Extract Manual entries in the Accrual Account using Account Analysis Report from Schedule Process
    We can get the entries which are having source other than “Payables” and “Receipt Accounting”. Reason for such entries need to be analyzed and reversed. 
  • Accrual Clearing of open transactions
    After identifying the PO lines for which the open Accrual balances need to be adjusted, she needs to go the Adjust Accrual Clearing Balances task in the Receipt Accounting module and perform the manual clearing. 

Issues in Accrual Reconciliation Process and Solutions provided

While performing the steps, Ms. Teresa faced many issues because the volume of transactions was very huge, and the analysis was not easy. Even after following the above steps, Ms. Teresa was unable to justify the auditors for the open balances. She also requested solutions to permanently solve these issues. The list of issues identified, and solution provided is as below –  

Issues  Examples  Solutions Provided 
Manual entry directly in the Accrual account  Manual entries directly in GL for booking ad hoc accruals.  Categorize the Accrual account as “Third Party Control Accounts” under COA values and use separate account for booking manual ad hoc accrual entries. 
Accrual entry for a different Accounting Class  Even after restricting manual entries in Accrual account, it can be used within Subledger transactions incorrectly. For Example, entering Accrual account as a Distribution combination while creating a Non-PO Matched line in AP Invoice will have the accounting class as “Item Expense” instead of “Accrual”.  A custom report has been developed by us to provide the information of Invoices where the accrual account is used without being matched to a purchase order. Additionally, we have enabled page level warning message through our “Orbri” plug-in to restrict entering accrual account while creating Non-PO Matched Invoice Line and enable approval workflows for Non-PO Matched Invoice Lines. 
Accrual Reconciliation Report (Seeded)  This seeded report’s format cannot be used for analysis of larger data, and no aging is available.  We have created a custom report which provides PO wise data in a Tabular format along with the Accrual Open Balance Aging Analysis which is more user-friendly. 
Missing Transactions for Returns  The Credit note is created by the Finance Department, but receipt return is not booked by the Stores Department or vice versa resulting in incorrect Accrual balances  Such inefficiencies in Business Processes were identified, and proper internal control processes were suggested so that no transaction booking is missed. 
Inadequate Match Approval Level Configuration  When 2-way match option is selected, the invoice can be created even if the receipt is not created by the Stores Department.  Either 3-way or 4-way match options should be selected, and the business process should be defined to record the receipts by Stores department and then only the invoice can be validated. 
Mapping Open balances with Accrual Clearing page  This is an identified Oracle bug where the balance in Accrual Clearing page might be different as against the actual PO wise open balance of Accrual because of some anomalies in Receipt and Cost Accounting entries. Oracle Bug – Bug 29783382  We need to match these balances using the custom report as no such seeded report option is available and in case of any differences, the Accrual clearing entries need to be monitored. 
Manual Clearing of Old Accrual balances  There is extreme manual effort to analyze and clear off the balances.  On timely basis the open Accruals shall be reviewed, and the old balances (eg., > 90 days) shall be cleared off for which no invoices are expected to be received using Automated Accrual Clearing Rules and Aging analysis. 
Data Migration Strategy for open PO  Using same Accrual account for migrating open accrual balances and booking new transactions. This will make the account look clumsy and reconciliation difficult. 

Using the same accrual account for migrating open accrual balances and recording new transactions can clutter the account and complicate reconciliation. 

 While migrating open Purchase Orders or Receipts, a dummy account shall be used for parking the Accrual balances which are booked in the legacy system. This account shall only be utilized for booking the invoices received later which can help in better tracking of the Accrual balances. Once the balance in this account is zero, this account shall be disabled. 

Benefits of Reviewing Accrual Balances 

After implementing the solution and monitoring the process for over a year, Ms. Teresa was applauded by the CFO, and they were able to notice significant benefits in following areas –  

Improved Financial Accuracy  Ensured that liabilities in the balance sheet truly reflect actual obligations, avoiding overstatement of inventory, expenses or liabilities. 
Enhanced Audit Readiness  Clean, reconciled accrual balances make it easier to respond to statutory and internal audit queries which reduced audit risks and exceptions. 
Better Cash Flow Planning  They had more accurate view of outstanding payables, which improved payment forecasting and working capital management. 
Compliance with Accounting Standards  It aligns with IFRS and GAAP matching principles, ensuring expenses are recognized in the correct period and accruals are adjusted when it is no longer “probable” that an outflow of economic benefits will be required to settle the obligation.  
Operational Efficiency  It helped identify bottlenecks and improving business processes 

– delayed invoice submission by suppliers 

– delayed recording of invoices by AP Team 

– inefficiencies in goods receipt/return recording. 
Improved Vendor Relationship Management  It facilitated faster resolution of discrepancies between POs, receipts, and invoices reduced disputes and built trust with suppliers. 
Stronger Internal Controls  It acted as a control to detect anomalies, such as receipts without invoices, cancelled orders, or duplicate entries. 

Best Business Practices for Accrual Clearing Rules in Oracle 

To minimize the manual intervention, we had defined Accrual Clearing rules based on the business process and policies followed by the client. The following considerations were discussed with Ms. Teresa while defining the rules – 

  • Accrual Clearing Rules – These are system configurations that determine how and when accrual balances are cleared.  \Key elements based on which rules can be defined –  
    • Accrual account(s) mapping
    • Source & event classes
    • Matching criteria
    • Ledger/BU scope
    • Automation/manual choice
    • Amount threshold
    • Aging criteria
  • Defined Business Unit wise Accrual Cutoff Rules to ensure adequate transactions are only considered under the Accrual Clearing Rules based on different terms of business in different geographies.
  • Drafted an Accrual Clearing Policy considering the following pointers –
    • Alignment with accounting standards and Localization impacts
    • Ownership & Accountability
    • Frequency of review
    • Handling exceptions

Conclusion

Accrual clearing in Oracle Fusion is not just a system process; it is a critical financial control, and a well-defined policy which ensures that accrued liabilities are accurate, aged items are addressed, and financial statements remain reliable. By combining system capabilities, cross-functional collaboration, and industry best practices, many organizations along with Ms. Teresa were able to turn accrual clearing into a seamless part of their period-close routine and save a lot of effort in terms of time and money

Why Healthcare Procurement is Unlike Any Other Industry: An Oracle Fusion ERP Perspective

Posted on by Lakshita Betala

Introduction

Healthcare procurement operates in a space unlike any other. While manufacturing emphasizes cost control and retail pursues supply chain speed, healthcare must balance patient safety, regulatory compliance, and clinical outcomes often in real time. Implementing systems like Oracle Fusion Procurement in this environment demands far more than technical expertise; it requires a nuanced understanding of how procurement impacts lives.

The Life-Critical Nature of Healthcare Procurement

Procurement decisions in healthcare are not just operational they’re clinical. Delays or substitutions can directly affect patient care. In high-acuity environments such as trauma centers or ICUs, even a brief stockout of a specialized implant or catheter can lead to significant clinical risk.

In Oracle Fusion, such risks can be mitigated with:

  • Critical item shortage alerts
  • Integration with clinical systems for proactive planning
  • Advanced approval workflows with escalation protocols

In some healthcare settings, real-time shortage notifications have been configured to trigger when stock levels fall below forecasted usage providing a 72-hour buffer for action before clinical impact occurs.

Regulatory Compliance: Beyond Business Standard

Few industries face the level of regulatory scrutiny that healthcare does. Audits often demand complete traceability from supplier credentials to product usage history. Organizations must demonstrate not just what was purchased, but when, how, and for whom.

Oracle Fusion supports this through:

  • Vendor qualification workflows that validate certifications such as FDA, CE, or ISO
  • Lot and serial tracking linked to receiving and usage records
  • Integrated recall management for identifying affected products and patients
  • Comprehensive audit trail functionality

In environments where regulatory inspections are routine, Fusion’s ability to instantly produce compliance reports and product genealogy logs has proven invaluable.

The Clinical User: A Unique Procurement Stakeholder

Unlike other industries, healthcare procurement frequently interfaces with clinicians physicians, surgeons, nurses who influence decisions based on patient outcomes rather than just price.

Consider orthopedic implants, where a small difference in revision rates might justify a premium brand. In many organizations, value analysis committees have begun using clinical outcome data in tandem with procurement metrics to assess product performance.

Oracle Fusion enables this by supporting:

  • Clinical preference tracking within item catalogs
  • Outcome-linked procurement reporting via OTBI or analytics tools
  • Custom approval workflows based on clinical justification
  • Mobile-friendly interfaces for on-the-go approvals during emergencies

This alignment of clinical insights with procurement decisions is helping healthcare providers make more data-informed, patient-centric choices.

Supply Chain Complexity: When Every Minute Matters

Healthcare doesn’t operate on “business hours.” Supply chain teams frequently face 24/7 demand for life-saving materials. Emergency procedures, unplanned admissions, and supply disruptions require rapid procurement flexibility.

In one hospital scenario, an emergency balloon catheter was needed at 2 AM, only to discover the standard vendor was out of stock. The system had to support:

  • Alternative vendor identification
  • Emergency PO creation
  • Clinical equivalency verification
  • Regulatory compliance confirmation

Oracle Fusion’s emergency procurement workflows enabled a seamless response bypassing standard approvals while maintaining audit compliance.

The procedure was completed successfully, but the event highlighted a broader issue in healthcare procurement: “next business day” simply doesn’t work in a life-critical environment.

Following this incident, several enhancements were introduced, including Oracle Fusion’s PAR (Periodic Automatic Replenishment) feature for critical care areas.

The PAR replenishment system significantly improved how inventory was managed in high-stakes environments such as operating rooms, ICUs, and emergency departments. Each location was set up with automated stock level monitoring using predefined minimum and maximum quantities. Now, when a cardiac catheter or similar item is used during a procedure, the system automatically triggers a replenishment order if the quantity drops below the PAR threshold.

This proactive approach has helped eliminate such emergency procurement situations and ensures critical supplies are available exactly when needed, without relying on manual interventions or after-hours escalations.

Value-Based Care: Redefining ROI in Procurement

The healthcare industry’s move toward value-based care changes how procurement success is measured. It’s no longer just about unit costs it’s about the total cost of care, including clinical outcomes and patient satisfaction.

For example, in joint replacement procedures, cheaper implants may result in longer hospital stays or higher readmission rates. Procurement teams equipped with integrated data have found that selecting a higher-cost implant with better clinical results can actually reduce the overall cost per episode.

Oracle Fusion supports this model by enabling:

  • Total cost of ownership analytics
  • Bundled payment tracking
  • Outcome-based contract management
  • Integration with EHRs and quality dashboards

Procurement is now viewed not just as a cost center, but as a strategic function supporting clinical and financial goals.

Risk Management: Extending Beyond Finance

While financial and operational risks are common across industries, healthcare adds clinical risk and regulatory exposure into the mix. Contaminated products, supplier recalls, and data traceability gaps can quickly escalate into safety incidents.

Oracle Fusion helps mitigate these risks through:

  • Lot-level traceability linked to clinical systems
  • Automated recall management workflows
  • Supplier risk scoring incorporating compliance, incident history, and delivery performance
  • Continuity planning tools that prioritize patient care over cost optimization

These capabilities allow procurement teams to act swiftly in high-stakes scenarios whether it’s pulling recalled products or rerouting supplies during a shortage

Technology Integration: A Healthcare Imperative

Healthcare organizations typically run complex IT ecosystems including EHRs (Electronic Health Records), LIS (Laboratory Information Systems), and HIS (Hospital Information Systems). Oracle Fusion must integrate cleanly into this environment without disrupting clinical workflows.

Key integration priorities include:

  • HL7 and FHIR-compliant data exchange
  • Procurement – EHR/HIS interoperability
  • Secure access controls and data governance
  • Real-time sync between clinical usage and inventory

Seamless integration ensures that procurement doesn’t just support operations it enables care delivery.

Conclusion: Procurement at the Heart of Patient Care

Implementing Oracle Fusion in healthcare is more than a system deployment it’s a clinical enabler. Healthcare procurement must be agile, transparent, compliant, and outcome-driven.

Those who understand its unique challenges will not only improve operational efficiency but also contribute meaningfully to patient safety, care quality, and organizational resilience.

In a Nutshell, Healthcare procurement stands apart from every other industry because it directly influences patient outcomes, regulatory compliance, and clinical effectiveness. Unlike manufacturing or retail, where cost and speed dominate priorities, healthcare demands agility, transparency, and safety in every transaction. Oracle Fusion ERP addresses these unique challenges by integrating clinical insights, automating compliance, enabling real-time responses to shortages, and providing deep analytics to support value-based care. The table below highlights how Oracle Fusion aligns its capabilities with the distinctive needs of healthcare procurement.

Aspect Unique Challenges in Healthcare Procurement Oracle Fusion ERP Capabilities
Life-Critical Nature Procurement decisions directly impact patient safety; delays or stockouts can cause clinical risks. –          Critical item shortage alerts

–          Integration with clinical systems

–          Advanced approval workflows

–          Real-time shortage notifications with 72-hour buffer
Regulatory Compliance Heavy regulatory scrutiny; need for complete traceability of suppliers and products. –          Vendor qualification workflows (FDA, CE, ISO)

–          Lot & serial tracking

–          Recall management

–          Comprehensive audit trails & compliance reports
Clinical Stakeholders Clinicians (doctors, surgeons, nurses) influence procurement based on outcomes, not just price. –          Clinical preference tracking in catalogs

–          Outcome-linked procurement reporting

–          Custom approval workflows

–          Mobile-friendly emergency approvals
Supply Chain Complexity 24/7 demand and emergency procurement needs; “next business day” isn’t viable. –          Alternative vendor identification

–          Emergency PO creation

–          PAR replenishment system for ICUs, ORs, and ERs

–          Clinical equivalency verification
Value-Based Care Shift from unit cost focus to total cost of care; ROI measured by outcomes and patient satisfaction. –          Total cost of ownership analytics

–          Bundled payment tracking

–          Outcome-based contract management

–          Integration with EHRs and quality dashboards
Risk Management Risks extend beyond finance to patient safety (recalls, contamination, shortages). –          Lot-level traceability

–          Automated recall workflows

–          Supplier risk scoring

–          Continuity planning prioritizing patient care
Technology Integration Must integrate seamlessly with EHR, HIS, and LIS systems without disrupting workflows. –          HL7/FHIR data exchange

–          Procurement–EHR/HIS interoperability

–          Secure access controls

–          Real-time clinical–inventory synchronization

Unlocking Payment Confidence: How ISO 20022 Acknowledgements Drive Payment Excellence in Fusion

Posted on by Lakshita Betala

Introduction

In today’s fast-evolving financial ecosystem, large enterprises and shared service centers depend on ERP platforms like Oracle Fusion Cloud to automate and simplify vendor payment processes. However, while initiating payments is only the first step, ensuring that those payments are successfully received and processed by banks is equally critical.

This is where payment acknowledgements play a vital role — offering transparency, minimizing risk, and driving operational efficiency. With the help of ISO 20022-based acknowledgements in Oracle Fusion, finance teams now gain near real-time visibility into payment statuses. This feature bridges the communication gap between ERP systems and banks, helping organizations mitigate operational risks and achieve faster, more accurate cash flow management.

Pre-requisites: If you’re reading this, we’ll assume you already speak a bit of the H2H (Host-to-Host) language in Oracle Fusion. That means you’re familiar with the essentials — things like Transmission Configurations, Payment System Accounts, file formats, and Payment Process Profiles.
Oh, and one more thing, make sure your bank speaks ISO 20022 too! You’ll need their support for both payment and acknowledgement files to make the magic happen.

The Evolution of Payment Confirmation in ERP: From Manual Pain to Automated Precision

Aspect  Life Before ISO Acknowledgements (Manual Pain Points)   The ISO Acknowledgement Feature (A Game Changer)   Why Acknowledgements are Crucial in ERP (Core Value)  
Confirmation Method  Manual/Delayed: Relying on bank portals, custom middleware (SOA/OIC), or checking end-of-day bank statements.  Automated/Real-Time: Automated upload and parsing of ISO 20022 acknowledgement files.  Instant Verification: Provides confirmation of payment file receipt and detailed processing status from the bank. 
Key Challenge / Benefit  High Operational Overhead: Required significant manual intervention and custom, bank-specific integrations.  Streamlined Efficiency: Eliminates the need for custom OIC/API workarounds, offering a seeded solution in Oracle Fusion (since Release 23D).  Error & Cash Flow Certainty: Gives immediate visibility of rejections/errors, crucial for accurate cash flow reporting and vendor satisfaction. 
Visibility & Speed  No Real-Time Insight: Payment status was often delayed until the next business day or through manual checks.  Real-Time Status Updates: Updates payment status directly within the ERP dashboard for immediate insight.  Enhanced Control & Transparency: Offers a higher degree of control and transparency over the entire financial operations cycle. 
Error Handling  Delayed Detection: Errors or rejections were often found hours or days later.  Automatic Resolution: Features auto-voiding of rejected payments and automatic handling of linked invoices.  Seamless Reconciliation: Greatly improves the reconciliation process and minimizes manual errors. 
Audit & Control  Lack of Auditability: Exception handling was complex and difficult to track consistently.  Enhanced Traceability: Provides robust audit trails, ensuring every step of the payment cycle is accounted for.  Solid Foundation: Enhances control, transparency, and the reliability of financial operations and auditing. 

 

ISO 20022 Disbursement Acknowledgement Levels

Acknowledgment Level  What it Confirms (Oracle Docs)  Consulting Considerations 
L0 (File Level)  Bank confirms receipt and file syntax is correct.  A successful L0 means nothing about the money movement. Silence after L0 is a potential “silent failure”. 
L1 (Payment Level)  Bank confirms transactions passed technical/business validation.  Partial Rejection requires immediate AP action. If the rejected invoice is auto-voided, the AP team must handle the accounting consequences of the voided payment and the subsequent re-invoicing/re-payment cycle. 
L2 (Clearing Status)  List of final rejections after the clearing process.  Critical for reconciliation and treasury, but not all banks provide L2—confirm during testing. 

L2 confirmations are especially useful for Cash Management Reconciliation, since they validate whether funds were settled. 

 

 

Enabling ISO Acknowledgements in Oracle Fusion: Setup Guide 

Prerequisites for ISO 20022 Acknowledgement Integration in Oracle Fusion 

  • Secure file transmission with the bank must be established (SFTP, SWIFTNet, or another secure channel).
  • The H2H setup must be working for outbound payments and inbound bank files.
  • Bank must support ISO 20022 format for payment and acknowledgement files.

Step-by-Step Configuration:

  1. Manage Payment Systems
  • Search for and edit the seeded “ISO20022 Payment System”
  • Note down the configuration settings

  1. Add the required settings to the payment system used for sending payment files, such as:
  • Automatic Retrieval Interval (e.g., 30 mins)
  • Auto-Voiding Option (Yes/No): If set to Yes, the system will automatically void payments that have a rejection status in the acknowledgement file.
  • Acknowledgement Format
  • Transmission Configuration (SFTP/HTTPS/UCM)
  • Voiding Invoice Action (None / Hold / Cancel)
  • Email Notifications toggle
  • Payment File Register Format for audit tracking

  1. Click Save and Accounts. Then we can observe the setting added in the previous step on this page. Input the details as per the requirement as shown below.

       

  1. Save & Link to Payment Process Profile
  • Ensure the same payment system is selected in the process profile that handles file transmission

Monitoring & Retrieving Acknowledgements 

Once a payment is transmitted, it appears under Manage Payment Files as shown below.

Acknowledgements can be retrieved using: 

  • The Retrieve Disbursement Acknowledgements task
  • Manual triggers from the payment files screen

On successful retrieval, the system: 

  • Updates the payment status
  • Reflects acknowledgement details
  • Initiates invoice handling based on setup

 

  

If acknowledgements cannot be retrieved due to errors or bank-side delays, Force Acknowledgement can be used. However, this should be a last resort to avoid reconciliation mismatches. 

Implementation Challenges 

Challenge  Recommendation 
Bank Interpretation Variations  ISO 20022 is flexible; banks may interpret formats differently. Thoroughly coordinate with the bank and test acknowledgements during SIT/UAT. 
Auto-Void Strategy  Decide early between ‘Hold’ (faster re-initiation) and ‘Cancel’ (better GL separation but complex re-creation if posted). 

 
Retrieval Performance  Start with 30-minute intervals and adjust based on volume; consider real-time only for high-value urgent payments. 

 

Conclusion 

The introduction of ISO 20022 Acknowledgement Processing in Oracle Fusion Release 23D marks a pivotal enhancement for finance teams and consultants. It eliminates the dependency on custom integrations and manual tracking by enabling secure, real-time, and automated reconciliation between ERP and banks. 

This feature not only simplifies payment configuration but also drives operational efficiency, enhances audit capabilities, and reduces reconciliation cycle times — all critical to a modern ERP-driven finance ecosystem. 

By embracing this feature, organizations can step confidently into the future of intelligent, integrated, and automated payments.

 

How to Make Your Data Impossible to Misread

Posted on by Lakshita Betala

Introduction 

Today, people make fast, sharp, and data-driven decisions as far as possible. Yet even the most important data might fall flat if it’s not presented well. Reporting does not need to be the kind of lazy, default visuals where a pie chart is used and generic tables are fashioned without considering whether they are indeed the best fit for the data or the story. 

This blog fills that gap: helping you with the best type of visualization appropriate for your data, whether you build reports within Oracle BI, OTBI, Oracle Analytics Cloud, or Power BI. You will know by the by-the-what, when, and why of using that representation. 

Why Do We Visualize Data

The human eye was never designed to study rows of numbers; it’s built to identify patterns, spot anomalies, store visual information in long-term memory, and react to attention-grabbing signals.
Visualizations bridge the gap between raw data and human perception, turning complexity into clarity. This is why a well-designed chart can tell a story briefly, while a spreadsheet forces the mind to slow down and decode.

The Data-to-Ink Ratio Principle 

A good visualization follows the data-to-ink ratio principle—using the minimum amount of visual decoration necessary to convey meaning. 

  • Data Ink—Elements that directly represent the data (bars, points, and lines). 
  • Non-Data Ink—Backgrounds, borders, shading, or decorative elements that don’t convey data. 

Too much non-data ink, like unnecessary colors, gradients, or 3D effects, distracts from the story. Less decoration and more simplicity and clarity will always make your dashboard more effective. 

For example, the first two visuals below clutter the view with excessive non-data ink, making it harder to focus on the actual information. The third visual removes unnecessary decoration, keeping only the essential data ink elements. This demonstrates how simplicity and clarity enhance understanding, making the message more effective. 

Why Choose Visuals Wisely 

The right visual can transform a raw dataset into a clear, actionable insight.
The wrong one can hide patterns, confuse stakeholders, and even lead to poor decisions. 

Why it matters:

  • Clarity—A good visual makes insights obvious at first glance. 
  • Focus—The right visual highlights what matters most. 
  • Engagement—Well-chosen visuals keep audiences interested and informed. 
  • Accuracy—Some visuals distort data if used incorrectly (e.g., 3D pie charts). 

Example: In Power BI, a bar chart showing sales by product makes category comparisons instantly clear, while the same data in a pie chart would make it harder to compare close values. 

Answer these questions before choosing a visual:

Before choosing a chart for your descriptive representation, consider the following:

1. What is the key message or question I want to answer?

2. Who is the audience: technical users or business stakeholders?

3. Will the focus be on trends, comparisons, or proportions?

4. Would interactivity be required (filters, drilldowns)?

5. What is the requirement for detail at first glance?  

Such answers will enable you to eliminate visuals that are either too complex or too simple for your case. 

Best Visuals Per Data Type

  1. Comparing Categories

Best visuals: Bar chart, Column chart 

  • When to use: Comparing quantities across categories 
  • Horizontal vs. Vertical Significance:

Bar Chart (Horizontal)—Better for long category labels or when comparing many items side by side, as the text is easier to read horizontally. 

Column Chart (Vertical)—Works well when showing time-based categories or when there are fewer, short-named categories 

  • Example: Headcount by department in OTBI works perfectly with a bar chart easy to read and compare lengths. In Power BI, column charts are great for side-by-side metric comparisons. 

 i. Column Chart                                   ii. Bar Chart

  1. Tracking Trends Over Time

Best visuals: Line chart, Line & Clustered Column Chart 

  • When to use: Showing change or patterns over a timeline 
  • Example: In OAC, a line chart showing the number of requisitions approved on each day. A line & clustered column chart can highlight if the monthly performance is improving as per requisitions.

i. Line Chart                                                        ii. Line & Clustered Column Chart

  1. Showing Percentages or Part-to-Whole

Best visuals: Donut chart, Pie Chart, 100% stacked bar 

  • When to use: Displaying proportions without overwhelming detail 
  • Example: Power BI’s donut chart and Pie Chart can show gender distribution in a team, while a stacked bar compares percentage contribution of each region to total revenue. 

Note: Pie charts aren’t great if you want to differentiate between minor percentage differences, but can help quickly show big differences.

  1. Progress Against a Goal

Best visuals: Gauge chart 

  • When to use: Displaying performance vs. a target 
  • Example: In OAC, a gauge chart is ideal for tracking Revenue target completion against the target amount. 

i. Gauge Chart

  1. Understanding Relationships or Correlations

Best visuals: Scatter plot, Bubble chart

  • When to use: Showing how two or more variables relate
  • Example: A scatter plot in Power BI (Showing Number of Invoice Vs Amount as Per Source) can reveal patterns, clusters, and outliers in billing behaviour across different sources, helping identify high-volume/high-value sources or unusual transactions. Bubble Chart can add a third dimension — for example, bubble size could represent total customers, average invoice value, or profit margin for each source.

i.  Scatter Plot                                         ii. Bubble Chart

  1. Hierarchy Visualization

Best visuals: Treemap, Cardinality Graph

  • When to use: Displaying data with multiple levels of categorization, Showing counts or frequency of each distinct category in a field
  • Example: Power BI’s treemap can show Region → Branch → Team sizes, making it easy to drill down visually and Using Cardinality Graph to Visualize Gender distribution across teams

i.  Treemap

  1. Geographic Data

Best visuals: Geo map, Heatmap

  • When to use: Showing location-based metrics
  • Example: Geo Map can display sales by state, while Power BI’s heatmap layers colour intensity to show concentration.

i. Geo Map                                                ii. Heat Map

Why Appropriate Visuals Work

1. Towards Recognition of Patterns: Humans are much faster in pattern recognition in visuals than in tables.

2 . Time of Judgment: Clean visuals reduce the amount of time for any type of analysis.

3. Error Reduction: Misunderstanding complex numbers is avoided.

4  .Retention: The mind tends to remember visual stories better than mere data.

Conclusion: Your Quick Visual Selection Table

Data Goal Best Visuals Example Recommended Tool
Compare categories Bar, Column Headcount by department OTBI / Power BI
Trends over time Line, Area Monthly attrition rate OAC / Power BI
Percentages Donut, Pie, Stacked Bar Gender split in hiring Power BI / OTBI
Progress to goal Gauge, Bullet Training completion % OAC / Power BI
Relationships Scatter, Bubble Tenure vs performance Power BI
Hierarchy TreeMap Region → Branch → Team Power BI
Geographic data Geo Map, Heatmap Sales by state OTBI / Power BI

You’ll have to ask the right questions, understand the data type, and take advantage of the strengths of tools such as Oracle BI, OTBI, or even OAC or Power BI to create dashboards that don’t just look good but also drive decisions.