Oracle ERP Cloud (Fusion) vs Oracle EBS (Comparison Summary)

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

On the Basis of Comparison Cloud ApplicationsEBS Applications 
Onhand Inventory PictureProvides 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/ CorrectionAllows reusing of existing Lot number with a different item after disabling Lot number item combinationRequired data fix/miscellaneous transaction
Inventory Transactions Based on Material Status ControlIt simplified control to restrict specific transactions based on material status.Status control is controlled using item attributes spread across multiple tabs. 
Reserving Supply Against DemandInventory reservations can be initiated directly from Supply or Demand (both current and future)Reservations could be created only from a demand.
Product RecallSupport recall notice for productsFunctionality not available.
Shipment Transaction FunctionsPicking & Shipping transactions are moved from shipping executions to inventory roles.Picking and Shipping transaction were tied to Shipping Execution Responsibility
Overpicking for Staging/ ProcessingAllows overpicking to bring inventory to staging area/ processingOver picking can be done upto a maximum of shipping tolerance
Acknowledgement for Material TransfersIt provides the ability to acknowledge material transfer using pick slip documents.The feedback for material transfer is not available. 
Transaction Capture Using Scanning DevicesNo Oracle cloud solution available.Oracle has a Mobile Supply Chain Application (MSCA) which can be used for transaction capture.
Controlled Miscellaneous TransactionsProvides control on miscellaneous transactions through approvals. Custom solutions to control such transactions through the approval process. 
Budgetary ControlBudgetary control and encumbrance accounting cloud can be used to monitor and control inventory transactionsInventory transactions were not subject to budgetary control/ encumbrance accounting
Inventory Management DashboardIt has easily configurable interactive and actionable dashboards. No standard dashboard available in application
Default Lot and Serial NumbersLot/ serial number can be defaulted from the supplier’s ASN/ ASBN while receivingFunctionality not available.
Integration with External ApplicationsIntegration available using Web Services and Oracle Integration CloudIntegration is only available using Oracle APIs and ETL applications.
ReportsHighly 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 ApplicationsEBS Applications 
Work Order Transaction ProcessingMS Excel based templates have been providedStandard Templates are not available
Work Order Operation ResequencingProduction operator can now resequence operations during executionA work order always enforced completion of operations in a linear and sequential manner. 
Enabling Manufacturing ProcessBoth discrete and process manufacturing can be enabled for the same factory/plantOnly one type of manufacturing process either Discrete or Process manufacturing, is associated with an Inventory organization.
Standard Operation YieldsThis feature is not available in fusion applications to meet requirements of high tech industriesYields can be set up at individual standard operations in OSFM
Error Fixing for Work order ImportsEnd-user can identify and fix errors independentlyThis feature in EBS requires applications support team to identify and fix errors individually
ShrinkageThis feature is not available in fusion applicationsShrinkage factor can be set up at item level.
Work Order ConversionMS Excel based templates have been providedStandard templates are not available in EBS.
Product GeneologyAdvanced traceability with lot and serial genealogy from raw material to finished goods.Simpler lot genealogy is available.
Item Structure ConversionMS Excel based templates have been providedStandard forms to key in the text manually.
Work Definition ConversionMS Excel based templates have been providedStandard forms to key in the text manually.
Real-Time Factory InsightsThe application integrates with factories using Machine Learning and IoT models. Highly intuitiveThis feature is not available in EBS
Material Picking for Work OrderSchedule 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 DashboardEasily configurable interactive and actionable dashboardsNo standard dashboard available in the application
ReportsHighly 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 ApplicationsEBS Applications 
Cost OrganizationA single or group of inventories within same profit center business unitAlways represents a single inventory organization by itself
Valuation StructureOption to enable costing at granular levelsThe only option is to enable costing at the Inventory Organization level.
Costing by Cost BookMultiple cost representations of same transaction is available using cost booksTransaction can be costed using only one costing method configured at Inventory Organization level 
Cost ProfileCombination of valuation structure, cost elements and costing method that can be assigned to each item.Not applicable for discrete manufacturing.
Cost ElementsUnlimited 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 AnalysisBetter cost comparison between one or more cost scenarios.The cost type comparison report is not as effective. 
Expense PoolsExpense accounts that can be absorbed as overhead costs.Resources and overheads had a single absorption account and no allocations.
WIP Accounting ClassThis 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 GroupsThis 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 AccountingAccount mapping can be changed at any point of timeMost of the accounts are frozen once transactions are recorded.
Cost ImportMS Excel based templates have been providedStandard templates are not available in EBS
ReportsHighly 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 DashboardUser interactive and actionable dashboards are easily configurableNo standard dashboard available in the application.

 

  • Order Management 
On the Basis of Comparison Cloud ApplicationsEBS Applications 
Order OrchestrationConfigure order fulfilment workflow using –

  • Steps
  • Dependencies
  • Process Planning
  • Change Management
Workflow linked to Order Transaction Types determine order processing
PricingConfigure 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 OrdersConfigure Jeopardy Thresholds and Priority in Order Orchestration. Real-time summary dashboard for managing orders –

  • Orders on Hold
  • Orders Past Due
  • Orders on Backorders
  • Orders in Errors
Here, it is managed through custom reports and manual processes.
Order CaptureOrder 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 OrdersRecalculates schedule dates based on incoming supply Need manual process to keep the dates aligned
Credit Card PaymentsConnects 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 ApplicationsPre integrated with Oracle commerce. Integration available using –

  • Web services
  • Business events
  • Order import by FBDI template
  • B2B
Integration only available using –

  • Order import
  • B2B
  • Web services
Order Management DashboardEasily configurable interactactive and actionable dashboardsNo standard dashboard available in application
ReportsHighly 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 ApplicationsEBS Applications 
WorkflowUtilizes the advanced Oracle Cloud PLM workflow.Only the Engineering module provides basic approvals for change orders. 
Data Access and SecurityAdditional 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 UpdatesBrowse and select items for mass updates, make changes online or using spreadsheets.Use Oracle Standard EBS interface tables for mass updates.
Item RevisionsOracle fusion improved to support 18 character revision with effectivity based sorting.This allows only 3 character revision with alphanumeric sort
Integration with External ApplicationsIntegration available using –

  • Web Services
  • Oracle Product Data Hub Cloud
  • Oracle Product Development Cloud
Integration only available using –

  • Oracle APIs
  • ETL applications
Product Data Management DashboardEasily configurable interactactive and actionable dashboardsNo standard dashboard available in the application.

 

  • Advanced Pricing 
On the Basis of Comparison Cloud ApplicationsEBS Applications 
Pricing Profile for CustomersEnabling creation of Pricing profiles based on similar buying characteristics. Functionality not available. 
Pricing StrategyEnabling creation of Pricing strategies through defining rules to achieve profitability goals for selling and pricing of an item.Functionality not available. 
Cost ListAdditional charges can be used, forming part of the item cost under the following heads:

Sales

Service

Freight

Cost list is not available. 
Pricing MatrixWith pricing matrix, a combination of Pricing Profile, Segments and Strategy, number of price lists to be created and maintained is minimizedThis functionality is not available.
Margin CalculationBased on the item cost consisting of cost elements and additional charges, margin calculation is performedMargin calculation based on Item cost and tax.
Integration PerformancePricing engine calls can be made using the integration provided.API for getting the price has a robust performance.
Integration with External ApplicationsPre integrated with Oracle commerce. Integration available using: –

  • Web Services
  • Business Events
  • Price List import by FBDI template
  • Price List Update by FBDI template

B2B

Integration only available using –

  • Price List Import using API
  • Price List update using API
  • B2B
  • Web Services

 

  • Logfire Warehouse Management System 
On the Basis of Comparison Cloud ApplicationsEBS Applications 
Logistics TransactionsAlthough all the transactions (Inbound, Inventory movement, Outbound) are available through pre-built OIC integrations nowIntegrated with the Oracle EBS Inventory module.
Stock ReconciliationCycle count using LPN LocationCycle Count using stock locators
Order CreationSales orders to be processed through WMS need to be interfacedIntegrated with the Oracle EBS Order management module. 
Inventory Item Master DataItem specific to cloud WMS have to be interfacedIntegrated with Oracle EBS Inventory module
ReportsThe reporting in WMS Cloud is a full-featured business intelligence solution. Users can build interactive tabular reports, visualizations, and dashboards using intuitive, specialized designersLimited standard report availability and requires development of custom reports.
Cost GroupsThis feature has been replaced with transaction based account mapping in Inventory Cloud.Accounting based on cost groups can be generated.
Integration with External ApplicationsIntegration available using Web services, FBDI TemplatesIntegration only available using: –

  • Order Import
  • B2B
  • Web services

 

  • Financials 
  • General Ledger 
On the Basis of Comparison Cloud ApplicationsEBS Applications 
Ease in Defining/ Usage of Chart of AccountsIntroduces COA structure instance, based on common COA but each instance can have different accounting segmentsOnly individual Chart of Accounts can be configured.
Single Screen Journal DashboardProvides work bench, combining multiple screens from EBSSwitching through multiple screens was required
Workflow NotificationWorkflow notifications content can be modified for Journal Approval processFunctionality not available
Period CloseProvides single view dashboard giving insights into the Period Close ProcessNo visibility was available in the close process
Integrated ApplicationsEnterprise Performance Management (EPM) which provides for Advanced Reconciliations, Eliminations, Consolidation and Period CloseCommonly integrated with Hyperion.
Financial DashboardsUses Infolets and Infotiles leveraging Oracle Transactional Business Intelligence (OTBI).This functionality was not available
ReportingEnhanced reporting through Financial Reporting Center with excel compatibility using Smart ViewProvided report generation using Financial Statement Generator.

 

  • Accounts Payable 
On the Basis of Comparison Cloud ApplicationsEBS Applications 
Invoice CreationUser friendly invoice creation process via spreadsheetEBS applications used Desktop Integrator
Cross Currency PaymentsCurrency in which payables invoice can be paid is not dependant on the currency in which the invoice is enteredInvoice currency and payment currency are required to be the same for processing payments.
Importing Invoices with AttachmentsInvoices can be imported with supporting attachments with details about the work performed, that can be used with workflow approval notificationsThis 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 approvalNo integrated invoice imaging feature.
Shared Service Center Model for Invoice and PaymentsInvoice of one business unit can be paid by a payment from another business unitThis feature is not available in EBS.
Open Invoice ConversionsMS Excel based templates (File Based Data Import) have been providedStandard forms to key in the text manually
Payables DashboardUser interactive dashboards and work areas with recommended daily actions and access to perform transactions can be easily configuredNo standard dashboard available in the application.
ReportingHighly 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 ApplicationsEBS Applications 
Processing payments received from customer using Smart ReceiptsProcess to automatically match Receipts based on match recommendation score derived from matching rule weightsNo Smart Receipt feature in EBS, only a simple lockbox was available.
Enhanced Auto Accounting for Bills ReceivablesFlexibility to derive accounts based on auto accounting rules for Factored (Brokered), Remitted and Unpaid bills receivableOnly one option for Bills receivable to derive accounting is available in EBS
Transaction DeliverySend printed documents using customer email optionsNo standard functionality available in application
Review Customer Account Details or BalancesOne screen to review customer transaction activities and balances across multiple business unitsRequired switching between operating units even with MOAC
Open Transactions and Receipts ConversionsMS Excel based templates (File Based Data Import) have been providedStandard forms to key in the text manually or going through extensions.
ReportingHighly 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 DashboardUser interactive dashboards and work areas for billing, receipts and revenue with recommended daily actions and access to perform transactions can be easily configuredNo standard dashboard available in the application.

 

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