Ypip3 oracle erp

State Bank of PakistanState Bank of Pakistan
Oracle ERP SoftwareOracle ERP Software

Oracle ERP ApplicationOracle ERP Application
Oracle E-Business Suite is the most comprehensive suite
of integrated, global business applications that enable
organizations to make better decisions, reduce costs, and
increase performance.
Oracle ERP is a completely integrated software suite
designed for medium to large enterprises.

Oracle ERP ApplicationsOracle ERP Applications
Customer State Bank of Pakistan
Implemented BY Hyundai Information Technology
Deployed Version 11.5.3
Current Version 11.5.10.2
Released 2001
Operational Since 2005

State Bank of Pakistan 4
Oracle ERP Modules in SBPOracle ERP Modules in SBP
Standard ModulesStandard Modules
• Oracle General LedgerOracle General Ledger
• Oracle PayablesOracle Payables
• Oracle AssetsOracle Assets
• Oracle Cash ManagementOracle Cash Management
• Oracle InventoryOracle Inventory
• Oracle PurchasingOracle Purchasing
• Oracle Human ResourcesOracle Human Resources
• Oracle Training AdministrationOracle Training Administration
Customized ModulesCustomized Modules
• Medical Services SystemMedical Services System
• Performance Management SystemPerformance Management System

5
Oracle
Purchasing
Oracle
General
Ledger
Oracle
Payables
Oracle
Inventory
Oracle
Assets
GLOBUS DATA
WAREHOUSE
Oracle HRMS, OLM
Payroll MSS PMS
Oracle Cash
Management
Integrated WorkflowIntegrated Workflow

State Bank of Pakistan 6
Operations DepartmentsOperations Departments
SBPSBP
• Finance DepartmentFinance Department
• Human Resources DepartmentHuman Resources Department
• Information Systems & Technology DepartmentInformation Systems & Technology Department
• Treasury Operations DepartmentTreasury Operations Department
• All departments are using Online Requisition, Budgeting and PMSAll departments are using Online Requisition, Budgeting and PMS
SBP-BSCSBP-BSC
• Accounts DepartmentAccounts Department
• Engineering DepartmentEngineering Department
• General Services DepartmentGeneral Services Department
• Personnel Management DepartmentPersonnel Management Department
• Training & Development DepartmentTraining & Development Department
• Medical Services DivisionMedical Services Division
• SBP BSC Field Offices (16)SBP BSC Field Offices (16)
• All departments/Offices are using Online Requisition and BudgetingAll departments/Offices are using Online Requisition and Budgeting

Oracle General Ledger (GL)
Central repository for accounting information, receiving
transactions from Oracle and non Oracle sub ledgers.
Oracle
General
Ledger
Non Oracle Sub ledgerOracle Sub ledger

General Ledger Specifications
Set of Books
A fundamental concept in Oracle Applications is the “Ledger“
The Ledger represents the core of a company’s financial records
where every transaction flows through.
In Sate Bank of Pakistan, only one Ledger is defined. This
Ledger is shared by SBP, BSC HOK and all the BSC field
offices.

Main Elements Required for LedgerMain Elements Required for Ledger
Accounting
calendar
Chart of accounts
Currency

Chart of Account
Chart of accounts is an Accounting structure we create to identify
General Ledger accounts. This flexible structure is made up of
subfields or segments. Each segment has a name and a set of values
The Chart of account structure of SBP comprises of sixteen
digits across the following four segments
Office Cost Center Account TBD
XX XXXX XXXXXX XXXX

Office Segment
This segment contains balancing entities. SBP, BSC HOK and
all the BSC offices are defined as a separate balancing entity in
the SBP Set of Book.
Office Description Office Description
11 State Bank of Pakistan 43 Gujranwala Office
12 SBP- BSC (Bank) Head Office 44 Lahore Office
13 For Future Use 45 Multan Office
21 Hyderabad Office 46 Sialkot Office
22 Karachi Office 61 Dera Ismail Khan Office
23 North Nazimabad Office 62 Islamabad Office
24 Quetta Office 63 Muzaffarabad Office
25 Sukkur Office 64 Peshawar Office
41 Bahawalpur Office 65 Rawalpindi Office
42 Faisalabad Office

Cost Center Segment
This segment contains “Departments”, “Divisions” and
“Units” of SBP, BSC HOK and all the BSC offices. It is used to
record income, expense kind of transactions at division/Unit
level.
Value Usage
0000 All
1000-5999 SBP
6000 – 7999 BSC HOK
8000 – 9999 BSC Offices

Account Segment
This segment is the natural accounting segment of SBP chart
of account. It is used to maintain all accounting heads for
assets, liabilities, income, expense and equity accounts.
Account Range Type
100000 – 299999 Assets
300000 – 499999 Liability
500000 – 699999 Income
700000 – 899999 Expense
900000 – 999999 Equity

TBD Segment
This segment is not applicable presently in BSC but will be
used to meet any future requirement of SBP. The default value
that is used is 0000. This segment has a size of four digits with
alphanumeric character format for catering the requirement.

Calendar
Calendar is created to define an accounting year and the periods it
contains.
SBP Accounting Calendar contains twelve monthly normal
periods and one adjustment period.
Normal Periods
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Jun-Adj
Adjustment Period

Period Status
Each accounting period has one of the following two statuses:
Open Period: Journals can be entered, imported and posted only
in open period. An unlimited number of periods can be open, but
doing so may slow the posting process and can confuse users
entering journals.
Closed Period: After finishing the month-end processing, it is
highly recommended to close the period. Journals can not be
entered, imported and posted in closed period. Closed periods can
be reopened.
In State Bank of Pakistan, Finance department is responsible
to maintain the opening and closing of GL Accounting
periods.

Currency
In SBP, all the transactions in Oracle General Ledger are
recorded in ‘PKR’. All the foreign currency transactions
recorded in Globus are first converted in “PKR’ and then
transferred to Oracle General Ledger.

19
Defining Flexfield Security RulesDefining Flexfield Security Rules
Security Rules are used to restrict data entry, onlineSecurity Rules are used to restrict data entry, online
inquiry, and reporting to specific values .inquiry, and reporting to specific values .
00 to 99
00 to 11
OFFICE SEGMENTOFFICE SEGMENT
Include:Include:
Exclude:Exclude:
12
13 to 99Exclude:Exclude:
Available:Available:

20
Defining Cross-Validation RulesDefining Cross-Validation Rules
Cross Validation Rules are used to prevent the creationCross Validation Rules are used to prevent the creation
of invalid account combinationsof invalid account combinations
Include:Include:
12-0000-000000-0000
12-8000-000000-0000
01-0000-000000-0000
12-0001-000000-0000Exclude:Exclude:
Exclude:Exclude:
AvailableAvailable
12-9999-999999-9999
99-9999-999999-9999
12-5999-999999-9999
LowLow HighHigh
12-0000-999999-9999
12-6000-000000-0000 12-7999-999999-9999

Define Responsibilities
A Responsibility is a level of authority in Oracle Applications
that lets users access only those Oracle Applications functions
and data appropriate to their roles in an organization. Each
responsibility allows access to:
A Specific Ledger
A specific application , such as General Ledger.
A restricted list of windows that a user can navigate to
 A restricted list of functions a user can perform.
 •Reports in a specific application
Each user has at least one or more responsibilities and several
users can share the same responsibility.

Define User
It is mandatory to have Application User to sign–on to Oracle
Applications
Assign Responsibilities
When an Application User is defined, it is mandatory to assign
one or more responsibilities.
.

Income Statement Closing Process
Oracle General ledger provided a standard Closing Program that is
run in the last adjusting period of the fiscal year to transfer income
statement year–end account balances of revenue and expense
accounts to the retained earnings account.
This program creates journal entries to reverse debits and credits of
ending year–to–date actual balances for the year. The balance, which
is the net of the reversed revenue and expense accounts, is
transferred to the specified closing account.

Income Statement Closing Process in BSC
In SBP BSC, this process is run by ISTD ERP team after the
completion of recording all the adjustment entries recommended by
Auditors. This process is run office wise to calculate the profit or
loss for each office separately.
Each office records a manual voucher to transfer its profit or loss to
BSC HOK.
Account Debit Credit
22-0000-945501-0000 10,758,310,209.41
22-0000-496102-0000 10,758,310,209.41
Finally the total profit or loss of BSC is transferred to SBP by BSC HOK.

Oracle
General
Ledger
Purchasing
Integration of General Ledger in BSC
Inventory
Fixed AssetsPension
Funds
Advances
Globus
Salary Payables

Integration of General Ledger in BSC
Module Frequency
Payables Daily
Purchasing Weekly
Inventory Weekly
Assets Monthly
Globus Daily
Salary Monthly
Advances When Required
Pension Monthly
Funds When Required

Overview of Importing Journal EntriesOverview of Importing Journal Entries
Subledgers
Post
Unposted Journal
GL_Interface
Transfer in
Summary or Detail
Update GL Balances
Import Journal

General Ledger Functionalities in SBP
Following functionalities of Oracle General Ledger are being
used in BSC.
• Import Accounting Entries from Sub ledgers
• Manual Recording of Journal Entries
• Posting of Journal Entries
• Reversing of Journal Entries
• Define Budget
• Enter and Update Budget
• Year End Closing Process
• Define Reports through FSG Tool

General Ledger Reports in BSC
Following reports of General Ledger are being used in BSC.
• Daily Trial Balance Report
• Daily Account Analysis Account Code Wise
• Month End Zero Balance Report
• Government Account Deposit Report
• Clean Cash Report
• Balance Sheet (BSC)
• Income Statement (BSC)
• BSC Statement of Affairs Report
• Inter-company Payables Receivables Office Wise

Oracle Assets (FA)
A Complete Asset Management Solution that helps to
maintain an accurate asset inventory and can assist in selecting
the best accounting and tax strategies in the organization.
F ix e d A s s e ts
M a n u a l A d d it io n
$
$
A u t o m a te d A d d itio n
$
V I S I O C O R P O R A T I O N
A d ju s tm e n t s
R e tir e m e n t
T r a n s fe r
D e p r e c ia tio n
C r e a t e J o u r n a l
E n t r ie s

Oracle Assets Specifications
Asset Book
Asset Book is used to partition your organization’s fixed assets data.
It is mandatory to set up Asset books before you can add assets to
them. You can set up multiple asset books that create journal entries
for different general ledger sets of books, or to the same set of
books.
In SBP, Two asset books are defined, one for the maintenance
of SBP fixed assets and one for the maintenance of BSC HOK
and BSC offices fixed assets.

Category Combination
Oracle Assets use the category structure to group assets by financial
information. Category structure is designed to record the
information according to the requirement of the organization.
In order to meet the requirements of SBP, asset category
structure classify the fixed assets into minor and sub-minor
categories for improving internal controls, facilitating tracking
asset information and better fixed asset management.
Major Category Minor Category Sub-Minor Category
XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX
Alpha Numeric – 25 digits Alpha Numeric - 25 digits Alpha Numeric - 25 digits

Major Category
Major Category depicts the grouping of assets according to the macro level
classification required by SBP (as per IAS). Each major category defined
for capitalized assets has a corresponding General Ledger account for cost
and accumulated depreciation in the Chart of Accounts.
Minor Category
Minor category categorizes the major asset categories into a second level of
detail, thus grouping the assets more precisely. The minor asset category
information is not depicted in the Chart of Accounts and consequently in
the financial statements. It is used for internal management reporting,
segregation of asset data and internal control.
Sub-Minor Category
This segment is not applicable presently in BSC but can be used to meet
any future requirement. The default value that is used is ‘None’.
FURNITURE & FIXTURE-TABLE-NONE

Location Combination
Oracle Assets use the location combination to group assets by
physical location and in order to track the physical location of each
asset.
In order to meet the requirements of SBP, physical location of
asset is captured and tracked at Branch, Building and Floor
level.
The length and format of each segment is shown in a table
below
Branch Building Floor
XXXXXXXXXXXX XXXXXXXXXXXX XXXXXXXXXXXX
Alpha Numeric – 25 digits Alpha Numeric – 25 digits Alpha Numeric – 25 digits

Branch Segment
This segment shows the office to which an asset belongs.
Building Segment
Building Segment appears next to the Branch segment. It shows
building names coming under various “Offices”, where asset is
physically present.
Floor Segment
Floor segment as the name implies represent a specific floor of the
buildings. The combination of building and floor give a complete
picture which floor of a particular building.
’ 12- SBP BSC HEAD OFFICE’-‘CANTEEN BLDG KH’-‘4’

Depreciation of Assets
Depreciation is a non cash expense that reduces the value of an asset as a
result of wear and tear or age. Most assets lose their value over time (in
other words, they depreciate), and must be replaced once the end of their
useful life is reached. There are several accounting methods that are used
in order to write off an asset's depreciation cost over the period of its
useful life.
• In BSC, for all the asset categories, Straight Line depreciation
method is used to depreciate the assets.
• Depreciation is charged on monthly basis
• Depreciation for the BSC asset book is run by BSC HOK
Accounts department. System generates single voucher for BSC
HOK and all offices. This data is transferred and then posted by
BSC HOK.

Depreciation of Assets
• According to the Fixed Assets policy of BSC
o Assets have value less than 2000 are not recorded in Oracle
Assets
o Assets have value between 2000 and 4999 are added in the
Oracle Assets module but these assets are expensed out at the
time of procurement. These assets are called imprest assets and
depreciation is not charged on these assets
o Assets have value between 5,000 and 24,999 are added in the
Oracle Assets module but these assets are expensed out at the
time of procurement. These assets are called expensed assets
and depreciation is not charged on these assets.
o Assets have value more than 24,999 are added in the Oracle
Assets module. These assets are depreciated on monthly basis.
These assets are called capitalized assets.

BSC Assets Depreciation Chart
Major Category Unit Cost Dep. Method Life
EDP EQUIPMENT Greater than 24,999 Yes Straight Line 3
FURNITURE & FIXTURE Greater than 24,999 Yes Straight Line 10
OFFICE EQUIPMENT Greater than 24,999 Yes Straight Line 5
VEHICLE Greater than 24,999 Yes Straight Line 5
EXPENSED ASSETS 5000 to 24,999 No N/A N/A
EXPENSED ASSETS - IMPREST 2,000 to 4,999 No N/A N/A

Tagging of Assets
A Tag verifies the existence of assets and their location, aids in
maintenance, provides a common ground for communication between
the Accounts Department and the end-users and discourages fraud
within an organization.
In BSC, System generated tagging functionality is properly implemented.
Tags for all the capitalized and expensed assets are generated by the
system at the time of addition. These tags are printed and then pasted on
the physical assets.
BSC HOK is responsible to print the Tags for all the BSC offices.
Special printers are procured for the printing of these tags. Printed tags
are sent to respective offices through courier.

Tagging of Assets
• Tag number is generated only for following four categories
o Furniture/Fixture
o Office equipment
o EDP equipment
o Motor vehicle
• The abbreviation for categories is
o FF for Furniture and Fixture
o OE for Office Equipment
o IT for EDP Equipment
o MV for Motor Vehicle
• The total length of the Tag is 15 characters
o First 3 characters for Office: KHI, LHR, HOK, then a separator
o Next 2 characters for category code, then a separator
o Next two characters for purchased fiscal year, then a separator
o Last five characters for number
eg: Tag Number for ‘Furniture and Fixture’ purchased in December 12, for Karachi
Office will be “KHI-FF-13-XXXXX”

Tagging of Assets
• Separate sequence is used for each office and asset category
• All the sequence are reset to zero at the start of each fiscal year
• Each unit of the asset is defined as a separate asset. User splits
those invoice distribution lines at ‘prepare mass addition’
window where no of units are more than one

Integration of Oracle Assets in BSC
Oracle
Assets Inventory
HR
Payables
General
Ledger

Oracle Assets Functionalities in BSC
Following functionalities of Oracle Assets are being used in
BSC.
• Quick Addition
• Detail Addition
• Mass Addition
• Adjusting Financial Information
• Adjusting Non Financial Information
• Reclassification
• Retirement
• Reinstatement
• Asset Transfer
• Depreciation Process
• Period End Process

Oracle Assets Reports in BSC
Following reports of Oracle Assets are being used in BSC
• Asset Additions By Cost Center Report
• Annual Additions Report
• Asset Additions Report
• Asset Category Listing
• Asset Retirements Report
• Journal Entry Reserve Ledger Report
• Asset Register Report

Oracle Cash Management
BSC HOK and all the offices work as separate entity. These
entities of State Bank of Pakistan interact with each other to
record various transactions; these are treated as intercompany
transactions.
Oracle Cash Management module is implemented in State
Bank of Pakistan to reconcile intercompany transactions.
Intercompany transactions recorded in any module of Globus
and Oracle are transferred to Cash management module at day
end. Cash management runs a program to automatically
reconcile these transactions.

Module ArchitectureModule Architecture
Originating Side Responding Side
Accounts Payables
Cash Management
Native
Interface
Custom
Interface
Globus
Payroll
GL
AP Custom
Interface
Globus
Payroll
GL
AP

Cash Management Specifications
Sets of Intercompany Transactions
There are two sets of Intercompany accounts are defined in
the Oracle General Ledger
First set (496101-496118) is used for those transactions
which are not reconciled automatically
The second set (496201-496218) is used for those
transactions which are reconciled automatically.

Auto Reconciled Inter Company Accounts
S.No Account Description Code
1 Inter-company Account - SBP 496201
2 Inter-company Account - BSC 496202
3 Inter-company Account - Karachi 496203
4 Inter-company Account - Hyderabad 496204
5 Inter-company Account - 496205
6 Inter-company Account - Quetta 496206
7 Inter-company Account - Sukkur 496207
8 Inter-company Account - Bahawalpur 496208
9 Inter-company Account - Faisalabad 496209
10 Inter-company Account - Gujranwala 496210
11 Inter-company Account - Lahore 496211
12 Inter-company Account - Multan 496212
13 Inter-company Account - Sialkot 496213
14 Inter-company Account - D.I. Khan 496214
15 Inter-company Account - Islamabad 496215
16 Inter-company Account - Peshawar 496216
17 Inter-company Account - Rawalpindi 496217
18 Inter-company Account - 496218

Manually Reconciled Inter Company AccountsManually Reconciled Inter Company Accounts
S.No Account Description Code
1 Receivable/Payables - SBP 496101
2 Receivable/Payables - BSC 496102
3 Receivable/Payables - Karachi Office 496103
4 Receivable/Payables - Hyderabad 496104
5 Receivable/Payables - Karachi N.N 496105
6 Receivable/Payables - Quetta Office 496106
7 Receivable/Payables - Sukkar Office 496107
8 Receivable/Payables - Bahawalpur 496108
9 Receivable/Payables - Faisalabad 496109
10 Receivable/Payables - Gujranwalla 496110
11 Receivable/Payables - Lahore office 496111
12 Receivable/Payables - Multan Office 496112
13 Receivable/Payables - Sialkot office 496113
14 Receivable/Payables - D.I Khan 496114
15 Receivable/Payables - Islamabad 496115
16 Receivable/Payables - Peshawar 496116
17 Receivable/Payables - Rawalpindi 496117
18 Receivable/Payables - Muzaffarabad 496118

Integration of Cash Management in BSC

Cash Management Functionalities in BSC
Following functionalities of Oracle Cash Management are
being used in BSC
• Import Originating Transactions
• Import Responding Transactions
• Auto Reconciliation
• Manual Reconciliation

Cash Management Reports in BSC
Following reports of Oracle Cash Management are being used in
BSC
• Account Analysis Detail Report( CM)
• Un Reconciled Transactions History Report (Responding)
• Un reconciled Transactions History Report (Originating)
• Originating & Responding Matching Report
• GL & CM Detail Comparison Report
• Staging Table Hold Data

Oracle Learning ManagementOracle Learning Management
•Competency Management
•Learning Paths
•Learning Certifications
•Online Learning
•Content Management
•Catalog Management
•Enrollments
•Resources

Catalog ManagementCatalog Management
•Categories
•Sub-Categories
•Courses
•Offerings
•Classes
•Sessions

59
Oracle Human Resources Management
Family of applications that automates the entire recruit-to-retire
process to align the workforce with strategic objectives.

Functions Benefits
Recruitment • On Line Requisition for vacancy
• Web based application download into Oracle HRMS
• System automatically scrutinizes and Short-lists the applicants as per defined
criteria
• Automatic generation of Letters & Lists
• Track of the progress of applicants
• Store applicant resumes on-line
• Create any type of event for applicants I.e Test, Interview etc.
Employee
Information
Management
• Centralized HR information repository that is fully integrated with other
applications, greatly facilitating reporting and analysis.
• Facilitate to store employee’s Contacts details
• Employee’s assignment records are date-tracked
• Keep turnover statistics via termination processing
• Store special information details
• All personal and historical information available on line
Compensation &
Benefits
• Automatic generation of worksheet and advices.
• manage salary proposals and approvals by competent
• Automatic Grant of annual salary increment and add-hoc salary increment.
• Maintain all compensation and Benefits through eligible criteria
• Integration with Payroll

Functions Benefits
Work Structure • Maintain and set up HR policies and HR Structure
Leaves
Management
• Automatically calculate Leave balance according to leave policies and
generate of Letters, Advices & Lists.
Performance
Evaluation Reports
(PER)
• Competences base performance rating
• Promotion Committee rating
• Seniority and PER wise merit list for promotion
• Staff orders
Oracle Learning
Management
• Automatic Training need analysis
• On-line availability of employee training record
• Availability of information regarding training programs
• MIS reports needed by management in order to train employees on the
basis of the competencies required

Oracle HRMS Specifications
Business Groups
A Business Group is a special class of organization. Every Business
Group can have its own set of default values, with its own internal
organizations, grades, jobs, positions, payrolls, employees,
applicants, compensations and benefits.
Oracle Applications secures human resources information by
business group. In short Business Group partitions Human
Resources information in a multi-organization structure.
Organization Structures and Organization Hierarchy is defined
within the Business Group.
In SBP, Two Business Groups are defined, one for SBP
employees and one for BSC employees.

Locations
Locations are defined in the system to record addresses of all the
organizations. Locations are shared across Business Groups in
HRMS and with two other Oracle applications: Inventory and
Purchasing.

Organizations
Organizations are the basic work structure of any enterprise. They
usually represent the functional, management, or reporting groups
which exist within a Business Group.

In BSC, all the departments and divisions of BSC Head Office
and divisions and units of all the offices are defined as
organization in the system.

Jobs
A job is a generic role within a business group, which is independent
of any single organization. The Job is used to define the working
roles, which are performed by employees.

In BSC, all the available working roles are defined in the
system as job. Below is the list of few jobs defined in the BSC
HRMS.

• Managing Director
• Director
• Chief Manager
• Deputy Chief Manager
• Joint Director
• Lift Operator
• Security Guard

Grades
Grades show the relative status of employees within an enterprise and
are often used as the basis for eligibility to Compensation and Benefits.

In BSC, all the valid grades are defined in the system. . Below is
the list of few grades defined in the BSC HRMS.

• CE - 1
• CE - 2
• CE – 3
• S-1
• S -2
• OG-1
• OG-2
• OG-5

Positions
Positions like jobs are used to define employee roles within Oracle
HRMS. Like jobs, position is an optional component of Employee
Assignment.
A position is a further definition of the job a person does within an
organization. For example, a position Finance Manager would be an
instance of the job of Manager in the Finance organization. The position
belongs to the organization.

69
Oracle
HRM
Oracle HRMS Integration in BSC
Purchasing
Fixed Assets
Pension
Funds
Advances
Salary Payables

Oracle HRMS Functionalities in BSC
Following functionalities of Oracle HRMS are being used in BSC.

•Recruitment
•Employee information management
•Compensation & Benefits
•Leave management
•Work Structures
•Performance Management
•Oracle Learning Management

Oracle HRMS Reports in BSC
Following reports of Oracle HRMS are being used in BSC.

• Employee Personal Information
• Employee Dependant Report
• Employee Experience List (Assignment History)
• Employee Element Detail Report
• Employee Salary Comparison Report
• Employee General Information
• Leave Application list
• Leave Account Register
• List of Locations
• List of Jobs with Valid Grade
• List of Organization
• List of Positions

73
Oracle Purchasing (PO)
Complete procurement solution that helps processComplete procurement solution that helps process
requisitions, Request for Quotations (RFQ’s), and Purchaserequisitions, Request for Quotations (RFQ’s), and Purchase
Orders (PO’s) quickly and efficientlyOrders (PO’s) quickly and efficiently
R e q u e s to rs
O ra c le In v e n tr o y
R e q u is itio n s
R e q u is itio n s
A p p r o v e d R e q u e s t fo r
Q u o ta tio n (R F Q ) S u p p lie r
Q u o ta tio n s
1 2 3 4 5
Q u o ta tio n A n a ly s is
Q u o ta tio n
A n a ly s is
A p p r o v e d P u r c h a s e O rd e r
( P O )
P a y m e n ts
( O r a c le P a y a b le s )
R e c e iv e Ite m s
( O r a c le In v e n tr o y )
S u p p lie r

74
Procurement CycleProcurement Cycle
Requisition
Purchase
Order
RFQ Quotation
Quotation
Analysis
Invoice
Delivery Inspection
Receiving
Payment
Reconciliation

Security FeaturesSecurity Features
• Multi Org structureMulti Org structure
• Access through Secured Oracle IDAccess through Secured Oracle ID
• Responsibilities StructureResponsibilities Structure
• Cross-Validation RulesCross-Validation Rules
• Security RulesSecurity Rules
• Request GroupsRequest Groups
• Approval HierarchiesApproval Hierarchies

76
Multi Org StructureMulti Org Structure

77
Oracle Purchasing SpecificationsOracle Purchasing Specifications
Operating units
Operating units are used to partition data for
 Payables
 Purchasing
 Order Management
 Cash Management
 Receivables
In State Bank of Pakistan, Total 19 operating units are defined
 2 OUs are defined for SBP
 1 OU is defined for BSC HOK
 16 OUs are defined for BSC offices
State Bank of Pakistan

78
Purchase OrdersPurchase Orders
PO Types
 Standard Purchase Order
 Blanket Purchase Agreement
 Blanket Release
PO Structure
 PO Header
 PO Lines
 PO Shipments
 PO Distribution
PO Approval Process
 Approved by the:
 Chief Mangers
 Director GSD/Accounts/Engineering
 Managing DircectorState Bank of Pakistan

79
Matching Options
 2-Way
 3-Way
 4-Way
Accounting Calendar
 Same accounting calendar as Oracle GL
 Centrally Maintained by SBP

Oracle Purchasing Specifications
Purchase Requisition Approval
Purchase Requisition or Purchase Request is a precise document
generated by an internal organization or external to notify the
purchasing department of items it needs to order, their quantity, and
the time frame that will be given in the future. It may also contain
the authorization to proceed with the purchase. It is also called
Purchase Order Request.

In SBP BSC, most of the Purchase Requisitions are prepared
manually and only a few are recorded in the system. Both the
manual and system generated purchase requisitions are
approved by the chief mangers.

Internal Requisition Approval
Internal requisitions provide the mechanism for requesting and
transferring material from one inventory organization to other
inventory organization or expense locations. When Purchasing,
Order Management and Inventory are installed, they combine to
give you a flexible solution for your inter-organization and intra-
organization requests.
In SBP BSC, due to the unavailability of Oracle Order
Management module, all the functionality required to process
internal requisition is customized. ACM is responsible to
approve these requisitions.

Purchase Order Approval
A purchase order (PO) is a commercial document issued by a buyer
to a seller, indicating types, quantities, and agreed prices for products
or services the seller will provide to the buyer.

In SBP BSC, proper purchase orders are recorded in the Oracle
Purchasing module to procure most of the items. Chief
Managers, Director Accounts, Director Engineering and
Managing Director BSC are authorized to approve these
purchase orders.

Blanket Purchase Agreement Approval
Blanket Purchase Agreement is a long-term agreement between a
company and its supplier. Although a single blanket purchase order
number is only set up one time, it can allow multiple releases against
it at different times throughout a set time period. An automatic
reorder may take place at periodic intervals or when supplies have
reached a specific predetermined minimum quantity. Automatic
reorders may be handled through the computer by preset data
entries or manually by reorder clerks.

In SBP BSC, Blanket Purchase Agreements are used for the
procurement of medicines from the approved manufacturers
and distributors. These agreements are approved by chief
managers.

Blanket Release Approval
A "release" occurs each time a blanket purchase order quantity is
fulfilled and invoiced against.
In SBP BSC, Blanket Purchase Releases are approved by Chief
Managers.

Position Hierarchy
Purchasing lets you route documents for approval based on position
hierarchies. To use the position approval hierarchies, it is
mandatory to define all the positions and then assigned employees to
these positions in the system you want to include in your hierarchies.

In BSC Offices, following Approval Hierarchy is followed to
approve most of the purchasing documents.

87
Oracle
Purchasing
Inventory
Oracle PO IntegrationOracle PO Integration
Payables
HRMS
General
Ledger

88
Reports
 Open Purchase Orders (by Buyer)
 Purchase Order Report for BSC Offices
 Printed Requisitions Report
 Requisition Distribution Detail Report

Oracle Inventory (INV)
Oracle Inventory is a complete inventory management
solution that helps in controlling inventory, ensures
adequate supply, and improves store management
Accept
Receive Goods
against PO
Verify Items
Against PO &
Delivery Challan
Carry out
Inspection
Reject
Return to Supplier
Update Inventory Count Items Physically
Adjust Quantity
after Approval
Transfer Inventory
Balances to GL

91
Oracle INV SpecificationsOracle INV Specifications
Receipt Types
 Direct Delivery
 Receipt then Delivery
 Inspection Required
Inter Org Shipping Network
 Shipping Org & Destination Org
 Transfer Type (Direct or In-transit)
 Accounting Information
Interface Mangers
 Transaction Manager
 Cost Manager
Account Aliases

92
Oracle INV SpecificationsOracle INV Specifications
Inventory Organization
 Medicines
 Stationery items
 Engineering items
 General Services
Subinventory Organization
 2 Sub inventories for Medicine
 1 Sub inventory for all other
Costing Method
 Average Costing Method
Accounting Calendar
 Same accounting calendar as Oracle GL
 Maintained BSC HOK and BSC offices

93
Overview of ItemsOverview of Items
 Item Structure (Identifier & Code)
 Item Master Organization-SIM
(Item Definition Org)
 Organization Assignment
 Item Attributes
 Stockable
 Transactable
 Purcasheable
 Reports:
 Item-Subinventory Report
 Item Status Report
 Item quantities summary

94
Overview of INV AccountingOverview of INV Accounting
Receive
Delivery
Issue
Receiving A/C Dr
Inventory AP Accrual Cr
Material A/C Dr
Receiving A/C Cr
Charge A/C Dr
Material A/C Cr

Oracle
Inventory
Purchasing
Oracle Inventory Integration
Payables
General
Ledger
Assets
Medical
System

Oracle Inventory Functionalities in BSC
Following functionalities of Oracle Inventory are being used in
BSC HOK and offices
• Define and Maintain Items Data
• Receiving Inventory
• Inspection
• Deliver
• Miscellaneous Issuance
• Issue against Internal Requisition

Oracle Inventory Reports in BSC
Following reports of Oracle Inventory are being used in BSC
HOK and offices
• Inventory Value Report
• Receiving Transactions Register
• Expired Lots
• Material Account Distribution Summary
• Material Account Distribution Detail
• On hand Item Quantity Report
• Unsupplied Items Report

Oracle Payables (AP)
Module of Oracle applications that facilitates the
completion of procurement cycle and maintenance of
supplier related transactions for SBP and BSC.

Oracle Payables Specifications
Operating Units
Operating units are used to partition data for Payables, Purchasing,
Order Management, Cash Management and Receivables modules.
Information is secured by operating unit for these applications
using responsibilities
In State Bank of Pakistan, Total 19 operating units are defined
2 OUs are defined for SBP
1 OU is defined for BSC HOK
16 OUs are defined for BSC offices

Types of Invoices
Standard: An invoice from a supplier representing an amount due for
goods or services purchased. Standard invoices can be either matched to a
purchase order or not matched.
PO Default: This type is used to match the invoice to purchase order.
When PO Default invoice is entered, Payables prompts to enter the
purchase order number and automatically enters the supplier name,
supplier number, supplier site, and the purchase order currency for the
invoice currency
Prepayment: A type of invoice you enter to pay an advance payment for
expenses to a supplier or employee.
Credit Memo: A memo from a supplier representing a credit amount
toward goods or services.
Withholding Tax: An invoice you enter to remit taxes withheld to the
appropriate tax authority.

102
Direct Payment System
Oracle
Payables
GLOBUS
Valid Payments
Valid PaymentsBank Branches
Bank Branches
OBMS

103
Process Steps
1. Approved cases are sent to Payment Focal Point.
2. Run the payment batch in Oracle AP
3. AP user will run the ‘Payment Data Transfer & Credit
of Payment’ Request Set
4. ‘Credit of Payments’ Report will be sent to respective
branches and Treasury branch of relevant Banks.
5. ‘Payment Data Transfer to Globus’ report will be signed
by two authorized persons and is sent to DAU.

104
Process Steps (Cont.)
6. In GLOBUS, at the ‘Start of Day’ all READY payments
will be loaded in GLOBUS as ‘HOLD/Unauthorized’
status
7. GLOBUS user will run the report and match it with the
AP report
8. GLOBUS user will authorize the matched transactions
9. Payments will be transferred by GLOBUS to the
respective banks’ current account
10. GLOBUS user will send the final report of ‘Authorized
Transactions’ to AP Users
11. AP user will update its own records manually (Optional
step that can be abandoned later)

Calendar
Oracle Payables uses the same accounting calendar defined in Oracle
General Ledger. Opening and Closing of periods is centralized and it is
maintained by SBP Finance department.

Withholding Tax
Withholding tax, also called retention tax, is a government requirement
for the payer of an item of income to withhold or deduct tax from the
payment, and pay that tax to the government.
In BSC, following Withholding Tax groups are defined to deduct tax.
• WHT 1.00% (MSD)
• WHT 6.00% (HO)
• WHT 3.50% (HO)
• WHT 5.00% (HO)

WHT 20% only of 16%GST
WHT 20% Only on the sales tax amount without any other normal Withholding
WHT 6% +100% of 16% ST
Normal 6% WHT + 100% WHT of 16% Sales Tax amount
WHT 6% + 20% WHT of 16%ST
17%GST WHT 6%+100% WHT
17%GST WHT 6%+20% WHT
17%GST of only WHT 20%
WHT 20% Only on the sales tax amount without any other normal Withholding
17%GST WHT 3.5%+100%WHT
Normal 3.5% WHT + 100% WHT of 17% Sales Tax amount
17%GST WHT 3.5% + 20% WHT
Normal 3.5% WHT + 20% WHT of 17% Sales Tax amount

Oracle
Payables Purchasing
Oracle Payables Integration
Fixed Assets
Funds
Advances
General
Ledger
Medical
System
HR

Oracle Payables Functionalities in BSC
Following functionalities of Oracle Payables are being used in BSC
• Maintenance of Suppliers
• PO Matched Invoice Entry
• Non PO Matched Invoice Entry
• Prepayment Invoices
• Credit Memos
• Withholding Tax Invoices
• Adjustments in Invoices
• Batch Payments
• Direct Payments

Oracle Payables Reports in BSC
Following reports of Oracle Payables are being used in BSC.
• Invoice Voucher Detail Report-BSC
• Supplier Payment Advice Report
• Tax Challan Memorandum Report (BSC)
• Supplier paid invoice history /payment history
• Withholding tax by tax authority
• Invoice on hold
• Prepayments Status
• Payment Register
• Accounts Payable Trial Balance
• Payables Account Analysis
• Payables transfer to General ledger
• Mass addition create

Medical Services System (MSS)
Custom developed Application that covers mainly the Patient
Management function of the Medical Services Department
(MSD) at the SBPBSC

MSS Specifications
Medicines Inventory Organizations
Inventory organizations tracks inventory transactions and balances. It
segregates the data and functions of Oracle Inventory.
In SBP BSC, Office wise inventory organizations are defined to
maintain inventory of medicines.
Opening & Closing of inventory period is maintained organization
wise by each entity

MSS Specifications
Subinventory Organization
Subinventories are unique physical or logical separations of material
inventory, such as raw inventory, finished goods, or defective material. All
material within an organization is held in a subinventory.
In BSC, two Subinventories for each inventory organization are
defined in the system to maintain medical inventory

Following Inventory Organizations and Subinventories are defined in the
system for medical inventory
S.No Office Organizations Suninventories
1 BSC Head Office MS0 MS-IICR, DISP-IICR
2 BSC Head Office MS1 MS-NNO, DISP-NNO
3 BSC Hyderabad MSY MS-HYD, DISP-HYD
4 BSC Sukkur MSS MS-SUK, DISP-SUK
5 BSC Quetta MSQ MS-QTA, DISP-QTA
6 BSC Bahawalpur MSB MS-BWP, DISP-BWP
7 BSC Faisalabad MSF MS-FSD, DISP-FSD
8 BSC Gujranwala MSG MS-GUJ, DISP-GUJ
9 BSC Lahore MSL MS-LHR, DISP-LHR
10 BSC Multan MSM MS-MUL, DISP-MUL
11 BSC Sialkot MSK MS-SKT, DISP-SKT
12 BSC Dera Ismail Khan MSD MS-DIK, DISP-DIK
13 BSC Islamabad MSI MS-IO, DISP-IO
14 BSC Muzaffarabad MSZ DISP-MUZ
15 BSC Peshawar MSP MS-PEW, DISP-PEW
16 BSC Rawalpindi MSR MS-RWP, DISP-RWP

MSS Integration
Medical
Services
System
Inventory
HRMS
Oracle
Payables
Payroll

MSS Functionalities in BSC
Following functionalities of MSS are being used in BSC
• Medical services to all the active employees and
their dependants
• Medical services to all the retired employees and their
dependants
• Process Employee medical claims
• Process Medical Stores & Hospital Bills
• Process Labs & Consultants Bills
• Maintenance of Medical Cards
• Maintenance of Labs and Consultants Rates

MSS Reports in BSC
Following reports of Oracle Payables are being used in BSC.
• Invoice Voucher Detail Report-BSC
• Doctor Performance Report (Detail)
• Doctor Performance Report (Summary)
• Medicine Consumption Report (Summary)
• Medicine Issued Report from Dispensary
• Daily Dispensary Report
• Detail of Direct Payment through AP
• MSS Invoice Register Report
• List of Employee's Referred to Hospitals/Consultants/Lab

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