Top 5 Essential Oracle ERP Modules You Need

  • Assim Gupta
  • Sep 13, 2023
  • 14 Min Read
Top 5 Essential Oracle ERP Modules

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Assim Gupta

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Assim Gupta is the CEO and Founder of Closeloop, a cutting-edge software development firm that brings bold ideas to life. Assim is a strategic thinker who always asks “WHY are we doing this?” before rolling up his sleeves and digging in. He is data-driven and highly analytical, yet his passion is working with teams to build unexpected, creative solutions that catapult companies forward.

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Businesses experience difficulties from even minor workflow management issues, leading to the need for Enterprise Resource Planning (ERP) modules to aid in channeling productivity as businesses face the consequences of irregular business operations.

Enterprise Resource Planning (ERP) is an efficient database-sharing medium for managing daily operational tasks more effectively and quickly. This allows displaying information such as financial flow, human resources, supply chain distribution, and other minute tasks across multiple server systems. Oracle ERP modules enhance the decision-making process and forecast accuracy in resource planning.

Certain Oracle ERP modules for organization software can be deployed quickly by hiring dedicated developers from ERP consulting services. Each module in an ERP system is tailored specifically to departmental requirements and the everyday activities that arise in enterprises, with these functions often occurring across departments or enterprises.

If, for instance, a company has a large-scale supply chain to delegate material and product distribution regularly to channel partners, a dedicated supply chain module would need to be included within their ERP system that channel partners can easily access. This makes sub-organizational management efficient by prioritizing single-unit work delegation in multi-line organizations.

What Is Oracle ERP?

Enterprise resource planning (ERP) refers to software organizations use to manage day-to-day business activities such as supply chain operations. A complete ERP suite also contains enterprise performance analyzer applications that help plan, expense, predict, and report solutions provided by administrations.

Oracle ERP is a cloud-based software solution used to automate back-office processes and daily business activities. As part of a business management suite, it consists of the financial, supply chain, project, accounting, enterprise risk identification and force of compliance management, and procurement. Streamlining multiple processes into one cohesive whole aims to increase collaboration, enhance productivity, and enable data-driven decisions.

What Are ERP Modules?

ERP modules are an ERP system's building blocks or business capabilities/processes. These components serve the back office functions such as finance and accounting, procurement, demand planning, and human resources primarily, with some businesses also adding front-end CRM functionality such as customer relationship management (CRM). By having one central database across departments, users spend less time compiling data than performing strategic tasks.

ERP systems are built upon modules, but businesses take different approaches when purchasing and adding modules. Some organizations opt for the "big bang" implementation approach where all capabilities they need go live at once. Other organizations choose a phased approach - first introducing financial management capabilities, then procurement or HR, guided by a long-term roadmap at each step.

Sometimes, the phases are implemented business unit or global region by business unit, gradually adding functionality as required using a shared foundation. Another instance is during M&A activity when companies acquire another business and use this transaction to justify phased ERP implementations.

An ERP system relies on well-defined data structures within one database, so all modules plugging into it work similarly. No matter which department it comes from, data remains consistent across departments due to shared definitions and user experiences - creating order instead of chaos in business processes.

Top 5 Essential Oracle Cloud ERP Modules

Most custom ERP solutions start with financials before adding additional capabilities based on business priorities, industry considerations, and changing conditions. Here is a list of essential Oracle Cloud ERP modules which may assist your organization. Their purpose, utility, and usage are also discussed here.

Module 1: Financial Reporting Modules in Oracle Cloud ERP

Oracle Cloud ERP provides financial capabilities that support modern finance, expense management, accounting engines, and revenue management - including expenses/budgetary control cloud (Finance Cloud), Accounting Hub Cloud (AHCC), and Revenue Management Cloud. Three offerings make up this Oracle module.

Financial modules give you a holistic view of your financial environment, providing quick responses to changes quickly. The Accounting Hub serves as the central command center for finance. By using ERP's finance module for ERP purposes, you can maintain a single source of financial data that corporate accounting and FP&A teams can trust and rely on.

Not only can the Oracle Cloud ERP provide your facility with an effective financial platform for reporting and processes, but its Accounting Integration module can also integrate accounting from other ERP systems - perhaps from sister companies in different locations - or transactional systems of any sort.

Financial Management Modules in Oracle ERP Systems contain features to oversee your finances efficiently. They aim to automate accounting and general ledger processes, automate expense processing, and report on new KPIs through cloud features such as accounts receivables, payables, and related features essential for business.

Harmonizing data ensures a uniform accounting approach across your organization. Other prominent features of ERP's finance and accounting module include:

Advanced Reporting and Analytics capabilities

Graphical insights and customization and interactive dashboards that facilitate decision-making make seeing the entire financial picture easier.

Intelligent Payable's and Assets

With optical character recognition and imaging, automated invoice processing becomes effortless. Be informed about real-time exceptions using role-based dashboard alerts while reconciling manually for hassle-free troubleshooting using the Exception Review feature.

Accomplishing global accounting requires keeping pace with the automatic calculation of invoice taxes for multiple jurisdictions and regions, including automatic calculation of invoice taxes for invoices and taxes across jurisdictions. Oracle Financial Management System enables global visibility of assets.

Technical Advancements in Revenue Management and Receivables

Oracle Cloud ERP Cloud includes automated revenue management and self-service customer account management for customer account viewing, payments, and disputes online - saving time and streamlining accounting processes.

Oracle Revenue Management allows organizations to recognize revenue for performance obligations at either a point in time or over time, according to IFRS 15 or ASC 606.

In addition, it offers many additional features:

  • Solutions for high-risk accounts

  • Digital Assistant for fast and flexible expense management

  • Joint Venture Management with accurate agreements, processes, and audits

Module 2: Project Management Modules in Oracle Cloud ERP

This module enhances project management with shared visualization tools that help track schedules, budgets, and resources. For instance, multiple project plans can be seen simultaneously to make allocating (and reallocating) resources much simpler; search filters enable easy recruitment of the right team. Budgets can also be managed better by standardizing how costs are captured across your business.

Advanced project management tools allow your business to maximize cash flow by automating customer invoices and project billing. In contrast, intuitive scheduling tools with mobile access enable Project Managers to plan, track, and collaborate with their teams at any moment in real-time.

Project control features enable organizations to enhance planning, budgeting, forecasting, and reporting of project costs and revenues with comprehensive financial controls. Project cost accounting features enhance accuracy while standardizing and streamlining the collection of costs associated with projects.

Project management modules have become a fixture in project-intensive industries like construction and manufacturing, often deployed effectively to accelerate on-time project completion, monitor costs efficiently, improve the accuracy of estimates for service-based estimates and costs, and optimize staff utilization and equipment use.

Predictive analysis tools offer insight into project status for fast turnarounds when inputs change rapidly. Included among this wide array of big-picture tools are:

In-Depth Resource Management

Resource Allocation Teams and resources can be carefully selected using tailored criteria and performance metrics shown in organizational resource pools. Please keep track of project talent and satisfy your employees by aligning skill sets and career goals to projects that best suit them.

Improved Communication

A successful project begins and ends with open and honest project communication. Conversation Threads with document sharing bring the entire team together even if they can't physically be together in one room; task management tools on mobile devices also ensure everyone remains on the same page.

Further project management applications include:

  • Project cost controls

  • Billing and contract compliance

  • Grants Management to oversee funds allocation and budgeting

Module 3: ERP Procurement Modules

Manufacturing operations can quickly collapse if disparate business systems and manual processes eat into time that should be spent on strategic planning. That is why the Oracle ERP Procurement module is an indispensable ERP solution all businesses should utilize to maximize procurement operations while strengthening bottom lines.

Supplier management can be simplified through intuitive tools and built-in analytics, while purchasing can benefit from easy-to-use buying tools that put customers into consumer roles. Requisitions still go through approvals processes. However, workflows automatically increase cost savings and compliance by routing purchases directly to approved suppliers with renegotiated pricing structures.

Oracle Procurement allows organizations to streamline contract creation and increase employee productivity with guided authoring tools leveraging pre-approved templates, clause libraries, and built-in collaboration capabilities. This enables procurement organizations to draft quality, compliant contracts quickly.

With self-service procurement, businesses can ensure compliant spending from approved suppliers while empowering employees to purchase independently using an intuitive tool like the Oracle Sourcing Cloud. This service helps manage sourcing goals, increase supplier competition, and evaluate multiple bids against various criteria.

Businesses can increase profit margins even further with the ERP Procurement Contracts cloud module, which ensures supplier compliance and performance. Its supplier portal module also gives organizations visibility into all source-to-settle activities with web connectivity and electronic invoicing. It gives organizations improved insight and efficiency for improved data-driven decisions and optimized procurement processes.

Oracle Cloud ERP Procurement Module features include:

  • Procure-to-Pay with automated purchase order creation and invoice matching

  • Supplier Data Capability Risk Management

  • Simplified, efficient Sourcing Negotiations Collaboration Tools

  • Simplified Document Authoring

  • Searchable Contract Repository

  • Oracle Business Network offers secure business-to-business e-commerce partnering.

Module 4: Risk Management and Compliance in Oracle Cloud ERP

Every business process may present compliance and data integrity risks. Oracle's e-business suite addresses risk management to detect emerging problems before they arise. In particular, it's risk management and compliance module uses artificial intelligence (AI) and machine learning for enhanced financial controls that help finance teams prevent cash leaks, enforce audits, and safeguard against new risks while saving hours in manual work processes.

Risk management capabilities enable organizations to remain compliant by automating processes like separation of duties (SoD) reporting, user access control, and audit transactions to detect fraud, errors, and policy violations quickly. You can also streamline workflows for Sarbanes-Oxley Act (SOX) compliance auditing and risk management/business continuity planning.

This approach helps minimize security costs while strengthening financial control audits and preventing system and financial leaks.

Critical Configuration Monitoring

Of particular significance is the capability to monitor and assess configuration changes across key processes, from those noted above and below, such as tracking of general ledger transactions through to accounting receivable/payable, expenses management, and project management modules. This feature covers data and processes that have changed throughout various modules as well as changes within them, such as tracking general ledger transactions through to changes relating to:

  • The general ledger

  • Accounts receivable/payable

  • Expenses

  • Project management

  • Procurement

To stay compliant with security compliance measures, ERP systems offer tools that help detect external threats, errors, or anything considered an "exception" and any strange behavior within their ERP system that might seem unusual or out of place. Such tools include:

  • Customized Security Design with simulations for informed decision-making (CDS/Sim)

  • Reduced error and fraud with automated sod (segregation-of-duties) Compliance reporting

  • Proactive user security monitoring

  • Digitized user access certification workflows for faster approvals

  • Incident workflow and dashboard for handling access exceptions

  • Continuous monitoring of financial transactions

  • Digitized SOX and audit workflows for compliance ease

  • Enterprise Risk Management (ERM) workflow - the foundation of an inherent risk-aware culture

Module 5: Supply Chain and Manufacturing Modules in Oracle Cloud ERP

Of all the modules within the Oracle Cloud ERP software suite, those most useful to your operations team will likely be those focused on supply chain planning, production scheduling, and inventory control - such as planning supply chains for order fulfillment processes or knowing how much inventory remains on hand for inventory estimates and estimation processes.

This Oracle ERP module aims to facilitate inventory control and production cycle efficiencies as part of an overall supply chain management system. It consists of inventory modules, purchase order import modules, process manufacturing, discrete manufacturing, manufacturing intelligence modules, and manufacturing intelligence modules.

THE Oracle ERP manufacturing module offers organizations an efficient means of inventory control, compiling and analyzing real-time performance data to increase productivity and profitability margins. Furthermore, its process manufacturing vs. discrete manufacturing offering allows organizations to streamline entire production cycles while guaranteeing multifaceted shop floor execution capabilities and manufacturing consistency.

Oracle apps are designed to adapt and maintain a flexible supply chain environment.

Next-Generation Demand Management

Forecasts can often be relied upon when planning for demand. However, Oracle's ERP Demand Management modules provide accurate historical demand tracking, exception monitoring, and change tracking capabilities that incorporate S&OP decisions for an overall view of demand management.

Items, locations, and customers can be divided into similar segments. Seasonality, promotional events, product attributes, or any other leading indicators can be added as leading indicators to make adjustments using ERP's Inventory Module.

Forecasts and scenarios can be accurately predicted when working closely with other key stakeholders. This is especially useful for new product launches, retirements, recalls, and managing other forms of non-binary demand.

Shop-Floor Monitoring and Scheduling What-Ifs

Monitoring Manufacturing Output to Avoid Late Orders and Bottlenecks Monitoring manufacturing output efficiently is one way to avoid late orders or bottlenecks; however, even with cutting-edge production systems, they still occur occasionally.

Oracle ERP modules for Supply Chain Management display day-to-day scheduling at a glance and help minimize the impact of unexpected yet often common scenarios like late or rushed orders, machine breakdowns, late supplies, or labor shortages.

Visual Gantt charts and drag-and-drop scheduling adjustments make it easier to address issues immediately. At the same time, more advanced tools, such as in-line simulations and the ability to run what-if scenarios, allow for sophisticated problem-solving and avoidance strategies.

Oracle ERP modules for Supply Chain Management also assist with:

  • Automatic replenishment with consumption rules

  • Unification of planning processes across multi-tier locations

  • Embedded analytics for monitoring supply problems

  • Setting order priority rules.

  • Sales and operations planning support using customized KPI dashboards for interactive business planning

  • Vendor managed inventory

  • Product life-cycle management

  • Global trade and warehouse management

  • Internet of Things and Blockchain database capabilities

Selecting the Appropriate ERP Modules for Your Business

While each business's optimal ERP modules will vary based on its business model, industry, current obstacles, and other considerations, most organizations require certain modules to run efficiently. Every organization must utilize some finance and accounting module to operate, monitor its financial health, and pay its bills on time. With this software, any organization can run efficiently.

Although not as essential, most businesses - regardless of industry or services provided - rely on some customer base, making CRM an invaluable module. HRM (Human Resource Management) solutions also prove worthwhile investments for any organization with multiple employees; employees must be paid promptly, while employers require a central platform that tracks employee information and development opportunities.

Any product company, including most manufacturers, distributors, and retailers, can benefit from having a supply chain management module. Most organizations begin with inventory and order management modules as essential daily functions before possibly adding manufacturing, warehouse management, and procurement solutions in later steps.

Services businesses such as consultancies, agencies, and maintenance and repair providers could experience a rapid return on investment with a project management module. It automates time-intensive billing processes while streamlining resource planning for projects.

Commerce and marketing automation software may not fall under the umbrella of ERP solutions; however, businesses rely heavily on them to attract and convert customers - especially as internet usage has become a primary driver of new business. At the same time, non-ERP vendors provide marketing automation and commerce solutions that may provide tighter integration or share an easy user interface that reduces learning curves and fosters employee adoption of their systems.

Implementing and purchasing an ERP platform could be daunting and time-consuming, but starting with the system that fits your business is key to starting strong and expanding as needed. Your ideal module for your business should meet current needs while being expandable enough to help meet future growth opportunities and challenges.

Conclusion

Oracle ERP modules provide an advanced solution for enterprise tasks - no matter how complex or simple - by streamlining work and resource management and decreasing time consumption and costs in producing final process output.

As you peruse Oracle Cloud ERP modules, it can be easy to become overwhelmed with all the possibilities and improvements they could bring to your organization. Switching to Oracle may be risky but selecting us as your trusted vendor partner ensures a consultant team that works across business applications for maximum return on software investment.

Oracle ERP systems contain many modules that can lead to data overload and extra spending, which can lead to additional and irrelevant modules clogging up their resources and lowering the performance of your system. If a corporation needs to define its operations structure properly and pursue excessive module integration, its system performance could suffer dramatically.

To avoid that situation, it's advisable to employ dedicated developers from custom software development services who can offer expert guidance regarding your business requirements and what databases should be chosen for database management.

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As my regular readers know, I frequently serve as a panelist in pitch events. Recently, I decid…

Startup Pitch Event, October 30th, 2017

Startup Pitch Event, October 30th, 2017

As my regular readers know, I frequently serve as a panelist in pitch events. Recently, I decid…

Startup Pitch Event, October 11TH, 2017

Startup Pitch Event, October 11TH, 2017

As my regular readers know, I frequently serve as a panelist in pitch events. Recently, I decid…

Startup Pitch Event September 26th, 2017

Startup Pitch Event September 26th, 2017

As my regular readers know, I frequently serve as a panelist in pitch events. Recently, I decid…

How Can MoviePass Be So Cheap?

How Can MoviePass Be So Cheap?

MoviePass caused major shifts in the movie industry when they lowered their monthly unlimited m…

User Experience is Key

User Experience is Key

There is nothing more tragic than a company with a great product that is hampered by poor user …

Investors Aren't Afraid of Smart Tech Outsourcing

Investors Aren't Afraid of Smart Tech Outsourcing

One of the most misunderstood fears entrepreneurs and startups have is that investors won’t inv…

Three Software Mistakes That Strangle Startups

Three Software Mistakes That Strangle Startups

I love meeting people who launch startups. Their energy and ambition inspire me. One of my life…

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