Oracle is one of the tech-colossal in administering the solutions for Enterprise business processes & customer relations. It has been an excellent practical choice for many large & mid-size organizations and now with Software-as-a-Service (SaaS) offering, makes it more attractive to startups. Well, Oracle applications have undergone various updates over the years in which Oracle Fusion applications and Oracle Enterprise-Business Suite (EBS) are two of the most popular Oracle business software platforms.
However, selecting the right one for the business needs can be proven challenging. This is especially true for the stakeholders and decision-makers that lack technical knowledge. Let’s examine Oracle Fusion applications versus Oracle EBS and should you opt for EBS R12 or Fusion applications?
Oracle Fusion V/s Oracle EBS R12
Oracle offers two viable options, either upgrade to the latest EBS R12 (either 12.1.3 or 12.1.2) or switch to Fusion applications (Now as Cloud ERP). It’s easier for SAP users who have a single core ERP product to choose from but still, it is a dilemma for quite a few organizations to select the right decision.
Oracle has promised to make significant investments in Oracle EBS and has pledged to offer Premier Support throughout at least till 2032, with yearly updates and revamps. Being a part of Oracle’s continuous innovation model and part of the App’s Unlimited Initiative, Oracle EBS release 12.2 is the last major upgrade that EBS clients ever have to make.
Now, listing the benefits of upgrading your EBS to release version 12.2X:-
- The upgrade to R12.2 is direct, which makes the shifting process easy and seamless. Furthermore, you’ll be staying within your same instance platform, with no need to move to a completely new system, as it would happen if the decision was to move to Fusion applications.
- R12.2 offers advanced improvements, enhancements and strengthened security. Under Premier Support, Oracle EBS clients can rest assured that their instance will continue to receive the new updates, fixes, and security updates that maintain the systems and allow them to run optimally as well as securely.
- While upgrading to R12.2, no significant technological change is required. The learning curve is minimal and there is no need to adopt & incorporate the latest technology changes.
- Just like Fusion applications, R12.2 runs on Fusion Middleware. Thus, you can immediately enjoy the most valuable ERP functionality available as soon as you upgrade to it.
Here are some of the key aspects of Fusion that one should consider when comparing it against EBS R12.2:-
- Oracle Fusion applications are positioned as the next-generation Business Application solutions by Oracle. It has a low cost of ownership and leads to faster ROI with standard architecture tools for setup and deployment modules.
- Fusion applications are built on service-enabled architecture and are full of SaaS models. Enterprise applications are easily integrated into a service-oriented architecture.
- Fusion applications are encompassed with best-in-class enterprise solutions acquired by Oracle.
- Fusion applications can run in a cloud computing environment or a company data centre and can be used across multiple areas including customer relationship management, human capital management, supply chain management etc.
Read more: Oracle ERP Cloud vs Oracle EBS Which is best
Difference between Oracle EBS & Oracle Fusion for the Following Modules
- Supply Chain Management (SCM)
- Inventory Management
| On the Basis of Comparison | Cloud Applications | EBS Applications |
| Onhand Inventory Picture | Provides a single inventory picture workbench for capturing and requesting transactions. | To gather the complete inventory picture & transaction, multiple screens & drill downs are required. |
| Inventory Lot Reassignment/ Correction | Allows reusing of existing Lot number with a different item after disabling Lot number item combination | Required data fix/miscellaneous transaction |
| Inventory Transactions Based on Material Status Control | It simplified control to restrict specific transactions based on material status. | Status control is controlled using item attributes spread across multiple tabs. |
| Reserving Supply Against Demand | Inventory reservations can be initiated directly from Supply or Demand (both current and future) | Reservations could be created only from a demand. |
| Product Recall | Support recall notice for products | Functionality not available. |
| Shipment Transaction Functions | Picking & Shipping transactions are moved from shipping executions to inventory roles. | Picking and Shipping transaction were tied to Shipping Execution Responsibility |
| Overpicking for Staging/ Processing | Allows overpicking to bring inventory to staging area/ processing | Over picking can be done upto a maximum of shipping tolerance |
| Acknowledgement for Material Transfers | It provides the ability to acknowledge material transfer using pick slip documents. | The feedback for material transfer is not available. |
| Transaction Capture Using Scanning Devices | No Oracle cloud solution available. | Oracle has a Mobile Supply Chain Application (MSCA) which can be used for transaction capture. |
| Controlled Miscellaneous Transactions | Provides control on miscellaneous transactions through approvals. | Custom solutions to control such transactions through the approval process. |
| Budgetary Control | Budgetary control and encumbrance accounting cloud can be used to monitor and control inventory transactions | Inventory transactions were not subject to budgetary control/ encumbrance accounting |
| Inventory Management Dashboard | It has easily configurable interactive and actionable dashboards. | No standard dashboard available in application |
| Default Lot and Serial Numbers | Lot/ serial number can be defaulted from the supplier’s ASN/ ASBN while receiving | Functionality not available. |
| Integration with External Applications | Integration available using Web Services and Oracle Integration Cloud | Integration is only available using Oracle APIs and ETL applications. |
| Reports | Highly flexible reporting providing excellent data visualization are available using Oracle Transactional Business Intelligence (OTBI). | Limited standard reports availability and requires development of custom reports |
- SCM Manufacturing
| On the Basis of Comparison | Cloud Applications | EBS Applications |
| Work Order Transaction Processing | MS Excel based templates have been provided | Standard Templates are not available |
| Work Order Operation Resequencing | Production operator can now resequence operations during execution | A work order always enforced completion of operations in a linear and sequential manner. |
| Enabling Manufacturing Process | Both discrete and process manufacturing can be enabled for the same factory/plant | Only one type of manufacturing process either Discrete or Process manufacturing, is associated with an Inventory organization. |
| Standard Operation Yields | This feature is not available in fusion applications to meet requirements of high tech industries | Yields can be set up at individual standard operations in OSFM |
| Error Fixing for Work order Imports | End-user can identify and fix errors independently | This feature in EBS requires applications support team to identify and fix errors individually |
| Shrinkage | This feature is not available in fusion applications | Shrinkage factor can be set up at item level. |
| Work Order Conversion | MS Excel based templates have been provided | Standard templates are not available in EBS. |
| Product Geneology | Advanced traceability with lot and serial genealogy from raw material to finished goods. | Simpler lot genealogy is available. |
| Item Structure Conversion | MS Excel based templates have been provided | Standard forms to key in the text manually. |
| Work Definition Conversion | MS Excel based templates have been provided | Standard forms to key in the text manually. |
| Real-Time Factory Insights | The application integrates with factories using Machine Learning and IoT models. Highly intuitive | This feature is not available in EBS |
| Material Picking for Work Order | Schedule the material picking request based on:- Partially picked order,Work order range, Work order operations and Hours behind. | Scheduled requests based on picking rules. |
| Manufacturing Dashboard | Easily configurable interactive and actionable dashboards | No standard dashboard available in the application |
| Reports | Highly flexible reporting providing excellent data visualization are available using Oracle Transactional Business Intelligence (OTBI) | Limited standard-reports availability and requires development of custom reports |
- SCM Cost Accounting
| On the Basis of Comparison | Cloud Applications | EBS Applications |
| Cost Organization | A single or group of inventories within same profit center business unit | Always represents a single inventory organization by itself |
| Valuation Structure | Option to enable costing at granular levels | The only option is to enable costing at the Inventory Organization level. |
| Costing by Cost Book | Multiple cost representations of same transaction is available using cost books | Transaction can be costed using only one costing method configured at Inventory Organization level |
| Cost Profile | Combination of valuation structure, cost elements and costing method that can be assigned to each item. | Not applicable for discrete manufacturing. |
| Cost Elements | Unlimited cost elements can be configured and grouped under Material, Overhead, Resource, Adjustment, Profit and Inventory cost element types. | Only Material, Material Overhead, Resource, Outside Processing, Overhead cost elements can be configured. |
| Cost Analysis | Better cost comparison between one or more cost scenarios. | The cost type comparison report is not as effective. |
| Expense Pools | Expense accounts that can be absorbed as overhead costs. | Resources and overheads had a single absorption account and no allocations. |
| WIP Accounting Class | This WIP accounting class feature has been replaced with transaction based account mapping. | WIP transactions are costed using the accounts defined under WIP accounting class. |
| Inventory Accounting/ Cost Groups | This feature has been replaced with transaction based account mapping. | Inventory transactions are cost using the accounts defined at inventory organization, subinventory and cost groups. |
| Ability to Change Accounting | Account mapping can be changed at any point of time | Most of the accounts are frozen once transactions are recorded. |
| Cost Import | MS Excel based templates have been provided | Standard templates are not available in EBS |
| Reports | Highly flexible reporting providing excellent data visualization are available using Oracle Transactional Business Intelligence (OTBI) | Limited standard reports availability and requires development of custom reports |
| Costing Dashboard | User interactive and actionable dashboards are easily configurable | No standard dashboard available in the application. |
- Order Management
| On the Basis of Comparison | Cloud Applications | EBS Applications |
| Order Orchestration | Configure order fulfilment workflow using –
|
Workflow linked to Order Transaction Types determine order processing |
| Pricing | Configure Pricing Matrix using – Customer Profile, Pricing Segment & Pricing Strategies.
Price List on Sales Order determined by Pricing Matrix |
Without Advanced Pricing, limited functionality is available. |
| Monitor and Manage Orders | Configure Jeopardy Thresholds and Priority in Order Orchestration. Real-time summary dashboard for managing orders –
|
Here, it is managed through custom reports and manual processes. |
| Order Capture | Order Hub’ to consolidate Orders from various sources. Configure Pre and Post transformation rules to progress the Order to fulfilment flow in Order Orchestration. | Order import interface. |
| Drop Shipment/ Back-to-Back Orders | Recalculates schedule dates based on incoming supply | Need manual process to keep the dates aligned |
| Credit Card Payments | Connects with Oracle Fusion Payments. Compliant with the Payment Card Industry Data Security Standard (PCI DSS) | It is very difficult to set up and maintain PCI DSS compliance. The customers preferred implementing 3rd party solutions and integrating it. |
| Integration with External Applications | Pre integrated with Oracle commerce. Integration available using –
|
Integration only available using –
|
| Order Management Dashboard | Easily configurable interactactive and actionable dashboards | No standard dashboard available in application |
| Reports | Highly flexible reporting providing excellent data visualization are available using Oracle Transactional Business Intelligence (OTBI) | Limited standard reports availability and requires development of custom reports |
- Product Data Management V/S Item Transfer
| On the Basis of Comparison | Cloud Applications | EBS Applications |
| Workflow | Utilizes the advanced Oracle Cloud PLM workflow. | Only the Engineering module provides basic approvals for change orders. |
| Data Access and Security | Additional Attributes defined for various item classes can be used to manage Access and Security of items. This feature is only available for Item Attributes and not available for Item Structures, Work Definitions etc. | Functionality to restrict attribute updates selectively is not available. Changes are controlled based on Master/ Child organization and item status. |
| Mass Updates | Browse and select items for mass updates, make changes online or using spreadsheets. | Use Oracle Standard EBS interface tables for mass updates. |
| Item Revisions | Oracle fusion improved to support 18 character revision with effectivity based sorting. | This allows only 3 character revision with alphanumeric sort |
| Integration with External Applications | Integration available using –
|
Integration only available using –
|
| Product Data Management Dashboard | Easily configurable interactactive and actionable dashboards | No standard dashboard available in the application. |
- Advanced Pricing
| On the Basis of Comparison | Cloud Applications | EBS Applications |
| Pricing Profile for Customers | Enabling creation of Pricing profiles based on similar buying characteristics. | Functionality not available. |
| Pricing Strategy | Enabling creation of Pricing strategies through defining rules to achieve profitability goals for selling and pricing of an item. | Functionality not available. |
| Cost List | Additional charges can be used, forming part of the item cost under the following heads:
Sales Service Freight |
Cost list is not available. |
| Pricing Matrix | With pricing matrix, a combination of Pricing Profile, Segments and Strategy, number of price lists to be created and maintained is minimized | This functionality is not available. |
| Margin Calculation | Based on the item cost consisting of cost elements and additional charges, margin calculation is performed | Margin calculation based on Item cost and tax. |
| Integration Performance | Pricing engine calls can be made using the integration provided. | API for getting the price has a robust performance. |
| Integration with External Applications | Pre integrated with Oracle commerce. Integration available using: –
B2B |
Integration only available using –
|
- Logfire Warehouse Management System
| On the Basis of Comparison | Cloud Applications | EBS Applications |
| Logistics Transactions | Although all the transactions (Inbound, Inventory movement, Outbound) are available through pre-built OIC integrations now | Integrated with the Oracle EBS Inventory module. |
| Stock Reconciliation | Cycle count using LPN Location | Cycle Count using stock locators |
| Order Creation | Sales orders to be processed through WMS need to be interfaced | Integrated with the Oracle EBS Order management module. |
| Inventory Item Master Data | Item specific to cloud WMS have to be interfaced | Integrated with Oracle EBS Inventory module |
| Reports | The reporting in WMS Cloud is a full-featured business intelligence solution. Users can build interactive tabular reports, visualizations, and dashboards using intuitive, specialized designers | Limited standard report availability and requires development of custom reports. |
| Cost Groups | This feature has been replaced with transaction based account mapping in Inventory Cloud. | Accounting based on cost groups can be generated. |
| Integration with External Applications | Integration available using Web services, FBDI Templates | Integration only available using: –
|
- Financials
- General Ledger
| On the Basis of Comparison | Cloud Applications | EBS Applications |
| Ease in Defining/ Usage of Chart of Accounts | Introduces COA structure instance, based on common COA but each instance can have different accounting segments | Only individual Chart of Accounts can be configured. |
| Single Screen Journal Dashboard | Provides work bench, combining multiple screens from EBS | Switching through multiple screens was required |
| Workflow Notification | Workflow notifications content can be modified for Journal Approval process | Functionality not available |
| Period Close | Provides single view dashboard giving insights into the Period Close Process | No visibility was available in the close process |
| Integrated Applications | Enterprise Performance Management (EPM) which provides for Advanced Reconciliations, Eliminations, Consolidation and Period Close | Commonly integrated with Hyperion. |
| Financial Dashboards | Uses Infolets and Infotiles leveraging Oracle Transactional Business Intelligence (OTBI). | This functionality was not available |
| Reporting | Enhanced reporting through Financial Reporting Center with excel compatibility using Smart View | Provided report generation using Financial Statement Generator. |
- Accounts Payable
| On the Basis of Comparison | Cloud Applications | EBS Applications |
| Invoice Creation | User friendly invoice creation process via spreadsheet | EBS applications used Desktop Integrator |
| Cross Currency Payments | Currency in which payables invoice can be paid is not dependant on the currency in which the invoice is entered | Invoice currency and payment currency are required to be the same for processing payments. |
| Importing Invoices with Attachments | Invoices can be imported with supporting attachments with details about the work performed, that can be used with workflow approval notifications | This functionality not available |
| Automated Invoice Imaging using Intelligent Character Recognition (ICR) | Inherent Supplier Invoice Imaging feature is supported which provides automated capture of selected attributes from the invoice image in order to facilitate seamless processing and approval | No integrated invoice imaging feature. |
| Shared Service Center Model for Invoice and Payments | Invoice of one business unit can be paid by a payment from another business unit | This feature is not available in EBS. |
| Open Invoice Conversions | MS Excel based templates (File Based Data Import) have been provided | Standard forms to key in the text manually |
| Payables Dashboard | User interactive dashboards and work areas with recommended daily actions and access to perform transactions can be easily configured | No standard dashboard available in the application. |
| Reporting | Highly flexible reporting providing excellent data visualization are available using Oracle Transactional Business Intelligence (OTBI) | Limited standard report availability and requires development of custom reports. |
- Accounts Receivable
| On the Basis of Comparison | Cloud Applications | EBS Applications |
| Processing payments received from customer using Smart Receipts | Process to automatically match Receipts based on match recommendation score derived from matching rule weights | No Smart Receipt feature in EBS, only a simple lockbox was available. |
| Enhanced Auto Accounting for Bills Receivables | Flexibility to derive accounts based on auto accounting rules for Factored (Brokered), Remitted and Unpaid bills receivable | Only one option for Bills receivable to derive accounting is available in EBS |
| Transaction Delivery | Send printed documents using customer email options | No standard functionality available in application |
| Review Customer Account Details or Balances | One screen to review customer transaction activities and balances across multiple business units | Required switching between operating units even with MOAC |
| Open Transactions and Receipts Conversions | MS Excel based templates (File Based Data Import) have been provided | Standard forms to key in the text manually or going through extensions. |
| Reporting | Highly flexible reporting providing excellent data visualization are available using Oracle Transactional Business Intelligence (OTBI) | Limited standard reports availability and requires development of custom reports |
| Receivables Dashboard | User interactive dashboards and work areas for billing, receipts and revenue with recommended daily actions and access to perform transactions can be easily configured | No standard dashboard available in the application. |
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