[Oracle Applications] Business requirement v/s Delivery

Client: "Our next requirement, this is something big, you know, we need an elephant…"

IT team: Why don't you adjust with a buffalo, even it is big… and black?"

Client: No, we need only elephant, let me explain our current process…………….." (client explains for an hour)

IT :Fine, I understand your requirement. But our system supports only buffalo…

C: We need only elephant!

IT: OK. Let me see if we can customize"

Requirements taken. Client wants a big black four legged animal, long tail, less hair. Having trunk is mandatory.

The same was documented, signed off and sent to offshore for development!

At the Offshore Development Centre,
Design/Development – Based on requirements all features are supported in base product (as buffalo) , for trunk alone a separate customization is done. Finally the customization is shown to client

Client faints....

In the escalation meeting.........

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Posted By OracleOnDemand to Oracle Applications at 7/27/2012 10:36:00 PM

[Oracle Applications] ACT with Oracle WMS

Already have Oracle Inventory module and still seeing the opportunity to improve productivity of your distribution centers, manufacturing or inventory handling facilities ? ACT with Oracle WMS - Automate, Control and Track your material with Oracle WMS.

WMS can be enabled at Inventory organization leveL for key business processes Inbound Logistics, Warehousing & internal inventory movements, Manufacturing transactions, Outbound Logistics  and Reverse logistics.

Key features that you might like about WMS:

WMS can be enabled at Inventory organization leveL for key business processes Inbound Logistics, Warehousing & internal inventory movements, Manufacturing transactions, Outbound Logistics  and Reverse logistics

License Plate Numbers (LPN): LPNs combine the item part number, stock location and serial/lot number into a single scanable record or number for material transactions.



Rules and Strategies: Rules and strategies control the picking, put away and cost group assignments for items in a WMSenabled organization. A strategy is a collection of rules. A rule can control where an item is put away or where an item is picked.

Consolidation and Cross Docking: Cross docking allows for material to be received and directly delivered to a shipping dock or manufacturing assembly line. Cartonization provides for box and container suggestions by item based on rules for size and weight.


Control Board: The control board allows a warehouse manager to allocate activities or tasks to a material handler. The control board also allows for the prioritization of tasks assigned to a material handler

Label Setup: You can define label formats and fields (data) needed, you can associate this with WMS rules to print the label automatically. WMS can generate xml output, but you need a 3rd party label printing/formatting tool to actually print.

Cost groups: In standard Inventory module Inventory valuation accounts are derived by subinventory setups. In WMS based on cost group rules you can have different valuations independent of subinventories.

Material Status: You can assign status to an item, lot or serial number. Each status is defined with a list of permissble transactions. Material status can enforce business rules.

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Posted By OracleOnDemand to Oracle Applications at 6/01/2012 12:58:00 AM

[Oracle Applications] Oracle waives extended support fees EBS 11i

ERP market is abuzz with the recent news of Oracle waiving the extended support fee for E-Business Suite 11i, this time until November 2013. Few unhappy ones are calling it as putting ketchup on burnt steak. The fees for Extended Support on 11i was initially set to start in November 2010 but was post-poned for year in November 2010 and then now for another 2 years taking it to all the way through November 2013.  Release 12 is out since year 2007.  Lot of customers still sitting on 11i might be waiting eagerly to see how the Fusion vision is falling in place.

I might just say :)  "Thanks for the tortilla chips while I wait for the dinner or supper. Now, don't get me on what's supper and what's dinner"

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Posted By OracleOnDemand to Oracle Applications at 12/26/2011 11:21:00 PM

[Oracle Applications] Did you knew changes in Oracle Purchasing with Release 12 ?

Changes to existing tables

PO_HEADERS_ALL

1. Added columns (SUPPLIER_NOTIF_METHOD, FAX, EMAIL_ADDRESS) for capturing the Communication Details specified for a PO on the Create/Update Order page
2. Added the STYLE_ID column for capturing the style of each document
3. Added new columns: created_language cpa_reference last_updated_program
4. Added column SUBMIT_DATE to record the date when purchase order is submitted for approval

PO_LINES_ALL

1.   Added new columns: catalog_name supplier_part_auxid ip_category_id last_updated_program
2. Addition of the following Columns :

• RETAINAGE_RATE(Rate to withhold retainage from progress payments) 
• MAX_RETAINAGE_AMOUNT (The maximum amount that can be held as retainage against a contract)
• PROGRESS_PAYMENT_RATE(% of work completed which is eligible to be paid, when using financing)
• RECOUPMENT_RATE (This % is applied to the invoice amount to determine the total amount of previously paid financing payments that can be applied towards this invoice to determine the current amount due)

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Posted By OracleOnDemand to Oracle Applications at 11/09/2011 06:17:00 AM

[Oracle Applications] Use Demand Class in Forecasting

Accurate demand forecasting is vital for holding optimal inventory.  The better you forecast your demand, the less residual inventory you will hold. Forecasting your demands is the key to plan your capacity, inventory & pricing. No forecasting method is 100% correct. Multiple forecast methods are used - based on judgement & based on data. I don't intend to write a long one on forecasting in this note; rather focus on "demand class" concept used in forecasting in Oracle Planning suite.

Business might have requirements to forecast its demand in multiple dimensions to help analyze the trend in actual sales order demands that consume the forecasts. As business, you would want to forecast your demand for certain regions and analyze how your actual sales demands were. While analyzing the regional forecasts consumption, you also might want to forecast on the customer segment you receive orders from - like automotive, energy, pharma or FMCG based on your product.

Attach the demand class to the forecasts you define and mark the sales order demands with relevant demand class. In the above example, you can opt to attach a "region" demand class to order types defined for each region. You can use the demand class ATP functionality to check the availability for certain demand class. Demand class can be optionally attached to your Inventory organization definition. If demand class is not attached to the forecast, Planning engine takes the demand class from the organization to which the demand belongs. 

Remember the thumb rule, consumption takes place only if the demand class of the sales order and forecast
match.

Questions? Drop me a note on applearn@gmail.com. 
You can also connect with me on http://www.linkedin.com/in/sajeedm

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Posted By OracleOnDemand to Oracle Applications at 3/28/2011 09:26:00 AM

[Oracle Applications] Average cost variance

In average costing, each receipt of material to inventory updates the unit cost of the item received. Issues from inventory use the current average cost as the unit cost. 

Perpetual Inventory value = Avg unit cost X Quantity

In Oracle Inventory, Inventory balances can be driven negative if the Allow Negative Balances parameter is
set in the Organization Parameters. Inventory calculates the costs differently in case we have negative inventory balances.   

Lets say, we have an on-hand quantity of -40 and we are performing a receipt of 50 quantity that would drive the quantity positive 10. This transaction would be split in two parts as below

a. Quantity required to drive on-hand from negative to zero 

In our example, this quantity would be "40". Inventory receives this quantity of "40" with current average cost and does not use the transaction cost

b. Remaining Quantity

Remaining quantity of "10" (50 minus 40) is received at the transaction cost and hence a new average unit cost is re-calculated

Difference between total receipt cost and the cost debited to inventory is average cost variance

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Posted By OracleOnDemand to Oracle Applications at 3/16/2011 03:04:00 AM

[Oracle Applications] Measure Supply Chain Performance

Given the increased attention and scrutiny your investors are applying to the supply chain's impact on a company's financial performance, you need a yardstick to clearly measure your Supply Chain performance. One of the most followed and detailed performance metrics are encompassed in the Supply Chain Operations Reference (SCOR) model. The SCOR model provides an industry-standard approach to analyze, design, and implement changes to improve performance throughout five integrated supply chain processes — plan, source, make, deliver and return

Plan

Assess supply resources; aggregate and prioritize demand requirements; plan inventory for Distribution, production, and material requirements; and plan rough-cut capacity

Source

Receive, inspect, store, hold, issue, and authorize payment for raw materials and purchased finished goods

Make

Request and receive material; manufacture and test product

Deliver

Execute order management processes; generate quotations; configure product; create and maintain a customer database; maintain a product/price database; manage accounts receivable, credits, collections, and invoicing; execute warehouse processes, including pick, pack, and configure; create customer-specific packaging/labeling; consolidate orders; ship products; manage transportation processes and import/export

Return

Process defective, warranty, and excess returns, including authorization, scheduling, inspection, transfer, warranty administration, receiving and verifying defective products, disposition, and replacement

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Posted By OracleOnDemand to Oracle Applications at 3/11/2011 01:53:00 AM

[Oracle Applications] Crossdocking in Oracle WMS

It has become vital for every business that has to deal with necessary evil of inventory management to maximize inventory turns and have less of stock to manage. Crossdocking functionality in Oracle WMS allows warehouses to improve its operational efficiency by transferring material as soon as it's received to outbound location. In the process, it avoids the inventory holding function thereby reducing the cost of inventory management

Businesses also want to ship products as soon as its manufactured to avoid managing finished goods stock at their warehouses and invoice the customers earlier (i.e. ship early, Invoice early). This also can be achieved using Crossdocking & you can call it "Direct shipping with Cross docking" If we have back-ordered Sales Order demand line and the WIP Job gets completed to a LPN, task would created to deliver the products to the staging to ship it "directly". 

On similar lines, Oracle WMS routes products directly from the receiving dock to a staging lane without placing product into a put away location.  Before choosing a warehouse put away location, Oracle WMS attempts to supply any sales order demand from the staged receiving supply.  As a result, unnecessary material handling and movement are reduced, which, in turn, helps reduce operational costs and streamline the order fulfillment process.

Remember, Cross docking must be enabled in the organization

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Posted By OracleOnDemand to Oracle Applications at 3/10/2011 02:52:00 AM

[Oracle Applications] Using Forecasting in Oracle Applications

Forecasting is predicting the future using some proven methods. There is no single right forecasting method to use. Selection of a method should be based on your objectives and your conditions. To understand how Forecasting functionality works in Oracle, we need to be aware of few terms as below:

In Oracle, Forecasts are defined within a three-level hierarchical structure. It goes from the most specific to most general - forecast entries, forecasts and forecast sets. 

Forecast entry is for a specific item number, quantity and date

Forecast may be defined for a specific customer, customer site, customer type etc. You can have user defined classification using demand class. In summary, related forecast entries are grouped into Forecast

If we group Forecasts that are some way related, its called Forecast set. 

Oracle provides 3 different methods to load the Forecast data. 

1. Forecast entry form

2. Open Forecast interface

3. System generated forecast based on historical data

Forecast entry form and Open Forecast interface are used when forecast data is created externally (not in Oracle). Sufficient history needs to be available in Oracle to use 3rd option of system generating the forecast.

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Posted By OracleOnDemand to Oracle Applications at 3/08/2011 03:23:00 AM

[Oracle Applications] Handling standard wastage (Shrinkage rate) in Oracle

Lets say we have a requirement where in every manufacturing job of 100 quantity ends up producing 80 quantity. You can define a shrinkage rate to describe expected scrap or other loss. Using this factor, the planning process creates additional demand for shrinkage requirements for the item to compensate for the loss and maintain supply.

For example, if you have a demand for 100 quantity and a discrete job of 40 quantity, the planning engine would suggest a planned order of 60 quantity. This would happen when there is no value populated in the "Shrinkage rate" field on Item Master (MPS/MRP planning tab)

Now going back to the business requirement mentioned above where every manufacturing job of 100 quantity ends up producing 80 quantity. If a shrinkage rate of 0.2 is entered in Item master, planning engine assumes that you lose 20% of any current discrete jobs and 20% of any suggested planned orders. 

Demand quantity  = 100

a. Discrete Job = 40

    Shrinkage = 20% of 40 = 8 quantity

    Net supply from Discrete Job = 40 minus 8 = 32 quantity

b. Net requirement balance: Demand qty - Net Supply = 100 minus 32 = 68

    Planning engine suggests a planned order = 68 divided by 0.2 = 85

    

Total Demand = 100 (original demand) + 8 (discrete job shrinkage) + 17 (planned order shrinkage) = 125

Total Supply = 40 (discrete job) + 85 (planned order suggested by planning engine)

Shrinkage is the wastage that happens while manufacturing finished goods.

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Posted By OracleOnDemand to Oracle Applications at 3/01/2011 03:08:00 AM

[Oracle Applications] What is EDI ?

EDI stands for Electronic Data Interchange

To understand the need for EDI, lets take a business flow and transactions involved. Company "C" is a manufacturer and regularly buys raw material from Supplier "S" that would typically involve below transactions for each purchase done. 

1. Buyer at Customer "C" enters a Purchase Order in his computer system
2. Buyer sends the PO through email or fax or mail to Supplier "S"
3. Sales team at Supplier "S" validates the PO to ensure that required information is provided
4. Sales team at Supplier "S" enters a Sales Order in his computer system
5. Sales team at Supplier "S" sends the Sales Order acknowledgment to Customer "C" through email or fax or regular mail

Imagine the cost, cycle time, money and risks of data entry errors involved in the above process. What if computer system at Customer "C" exchanges data with computer system at Supplier "S" using an intermediate communication link ? Yes, that's the idea behind EDI.


Organizations that send or receive documents between each other are referred to as "trading partners" in EDI terminology. Trading partners are free to use any method for the transmission of documents. Few of the transmission mediums used are Value Added Network (VAN), Internet/AS and Web EDI.


EDI translation software, popularly known as Translator, validates the partner and checks if the data received meets the standard formats defined before converting it to a desired file format which can be read and imported by the receiver's computer systems (for e.g. ERP)

EDIFACT & X12 are most widely followed EDI standards. The standards prescribe the formats, character sets, and data elements used in the exchange of business documents and forms. 

Oracle e-Commerce gateway (earlier EDI gateway) module helps organizations meet their EDI requirements with flexibility to use choice of your translator, EDI standard and yet tightly integrates with other modules from Oracle.

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Posted By OracleOnDemand to Oracle Applications at 2/20/2011 12:18:00 PM

[Oracle Applications] Creating warranty contract

When individuals or business buy products or equipments, manufacturers provide free warranty coverage for certain period of time. Oracle Applications provides a functionality to create warranty contracts on each serviceable products shipped from the manufacturer. 

To achieve the above functionality, you need to setup on the below:

1. Define Coverage (Service Contracts)

2. Mark the finished product as Install base trackeable & Enabled contract coverage (Inventory)

3. Define warranty item with warranty period (Inventory)

4. Include warranty item in the Finished Product Bill of Material (BOM)

Once you ship the finished product, it would create an item instance and subsequently create a warranty contract

Related Profile Options

OKS: Consolidate Warranty for Multiple Orders

Determines if an order for products with warranties, sold in Order Management, should be consolidated when the service contract is created. Similar warranties are grouped on a single contract rather than creating separate contracts

OKS: Contracts Validation Source

Allows the user to define the organization information that should be referenced when automatically creating a contract

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Posted By OracleOnDemand to Oracle Applications at 2/02/2011 08:19:00 AM

[Oracle Applications] Move Order Transaction

Move Orders allow transaction of material transfer from one subinventory to another in the same inventory organization. 

At a high level, Move Order process have two basic steps: 

a) Creation of the Move Order 

b) Move Order transfer transaction

Move Order can be manually created or it can be automatically created from various replenishment and material demand processes. 

Move Order can be created through multiple sources:

a) Manual creation

b) Min-Max replenishment

c) Kanban replenishment

d) Sale Order Pick Release

e) WIP Job Component Pick Release

f)  Move Order API

Steps in the Move Order Process:

1. Move Order creation through various sources (mentioned above)

2. Move Order approval

3. Move Order allocation

4. Move Order transfer

Move Order Time Out
Use if you want to require approvals for the move orders in your organization. If this is left blank, the Move Order will be approved automatically

Profile option "INV: Fill & Kill Move Order" can be used to gives capability to cancel replenishment move order lines that have partially allocated and transacted

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Posted By OracleOnDemand to Oracle Applications at 11/11/2010 02:30:00 AM

[Oracle Applications] Critical Success Factors for Implementation projects

Leaned out process 

Ownership by business process owners

Effort estimation - Schedule, Resources




Clear ownership on requirements & in detailed description of each requirement

Understand the impact of Customizations
 
No change requests after requirement gathering freeze; unless absolute show stoppers

Data migration - Start very early in the game - Volume, data cleansing, Minimum 4 loads

Infrastructure support - Software, Hardware, Network


List down any parallel projects that need to be scheduled / worked-out with

Imagine, Plan, Discuss, Think, Brainstorm, Fine tune the go-live strategy to the operational level on the what, when, how, who, where and why of each small data creation & update


Don't change your business process owners in the midst. Have long term visibility before you enroll them on board


Have a good mix of Old timers, Medium experienced and recently joined process owners from each process. Inducting new hires with good experience in processes and best practices  into the business at least one year before the planned start of the implementation project is a good option to consider

Consider training as an important task to connect to users and plan it ahead of time. Process owners need to drive this supported by project team


Don't overkill; don't try to achieve something from a business application that can be easily done in a different application. For example, BI is good for graphical reporting 


Have a good mix in Project team - Business application experts with insight in Business processes & well informed of trends, best practices and innovation


Look at the broader plan where the implementation projects fits into. Implementation project should look seamless and clearly as a part of the long term initiative

Don't overwork, overstress your project team. Work hard, party harder !

Make your team understand that Internal selling is fatal

Right job to right person. Camel delivers best in desert !

No city council work. Two working, Twelve monitoring !


Lead the team from front. Catch the bull by the horns.






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Posted By OracleOnDemand to Oracle Applications at 6/29/2010 07:16:00 PM

[Oracle Applications] How to automatically populate unique ship set on Sales ...

If the profile option "OM: Assign new set for each line" is set as "Yes", then

1. Enter value as "Ship" for the field "Line Set" in Sales Order form (Tab: Others)
2. Enter Sales Order line information (ordered item, quantity)
3. Unique Ship set numbers would be auto-populated in the "Ship set" field at SO line level

Use the above if,
a. Multiple shipments are allowed per order
b. Each SO line needs to be shipped completely


If the profile option "OM: Assign new set for each line" is set as "No", then


1. Enter value as "Ship" for the field "Line Set" in Sales Order form (Tab: Others)
2. Enter Sales Order line information (ordered item, quantity)
3. One Ship set number would be auto-populated in the "Ship set" field for all the SO lines

Use the above if,

a. Multiple shipments are NOT allowed per order

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Posted By OracleOnDemand to Oracle Applications at 6/26/2010 02:07:00 AM

[Oracle Applications] FREE training sessions in Oracle Applications - Univers...

Hi Friends,

We are poised to start with our online training volunteered by professionals with rich implementation and support experience in Oracle Applications (ERP & CRM). 

 

In our effort to provide an opportunity to University students, we plan to include few selected students as well for  basic walk-through sessions. Please forward this to whoever you might think would be interested. Interested may send an email to "applearn@gmail.com"

 

We would be soon sending out the planned session details to the trainer and attendees selected for the first round of online free training sessions.

Thanks for your participation !

Happy Learning,
applearn team

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Posted By OracleOnDemand to Oracle Applications at 5/27/2010 08:44:00 AM

[Oracle Applications] WIP Accounting in Oracle Applications

Please send in your comments on applearn@gmail.com

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Posted By OracleOnDemand to Oracle Applications at 5/19/2010 10:08:00 AM

[Oracle Applications] FREE training sessions in Oracle Applications ...TL @ a...

Hi Friends,

We, at applearn as a team, continuously endeavor to device ways to reach out to professionals & beginners to share knowledge and learn. In line with the same, we have initiated a drive that might help us share and learn more, extend our knowledge base to fellow applearners and in turn learn new areas which we always wished. TL @ applearn is an effort in that direction.

*TL = Teach and Learn

We plan to bucket a TL group of 5, where-in each member would take up few training sessions on the Oracle Module of his/her expertise and choice. If you wish to be a part of the TL @ applearn group, you need to send the following details to "applearn@gmail.com" at your earliest.

Your Name :
Telephone Contacts:
Currently Located in (Timezone): (please provide City/Country with Time zone details)
Oracle Module name(s) :
*If you wish to cover more than one Oracle Module, please list them

Please note that you need to cover at least ONE module to qualify to be part of TL @ applearn. Please be rest assured that applearn team is here to help you to prepare for the session. Training sessions would be online and dialed by members into call coordinates

Happy Learning,
applearn team 

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Posted By OracleOnDemand to Oracle Applications at 4/26/2010 08:09:00 AM

[Oracle Applications] Specifications in Oracle Quality

Specifications define the requirements to which the product must conform. You can define specifications for the key characteristics of the products that you produce or for the materials that you receive from suppliers. You can attach illustrative or explanatory files to specifications, such as text, images, word processing documents, spreadsheets, video, and so on. Attachments can be used to document processing instructions as well as inspection and disposition procedures.

Quality Menu > Setup > Specifications

Some typical examples of using specifications are:

1) Warn or trigger a specific action when collected data lies outside the reasonable range of a specifications

2) Assist data entry by displaying the specification limits

Three types of specifications available in Oracle Quality are Item, Supplier and Customer

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Posted By OracleOnDemand to Oracle Applications at 11/23/2009 05:51:00 AM

[Oracle Applications] Quotes

A man who dares to waste one hour of time has not discovered the value of life.
-- Charles Darwin

All the art of living lies in a fine mingling of letting go and holding on.
-- Henry Ellis

Any idiot can face a crisis - it's day to day living that wears you out.
-- Anton Chekhov

Believe that life is worth living and your belief will help create the fact.
-- William James

Don't go around saying the world owes you a living. The world owes you nothing. It was here first.
-- Mark Twain

Every man dies. Not every man really lives.
-- William Wallace

Everything has been figured out, except how to live.
-- Jean-Paul Sartre

God writes a lot of comedy... the trouble is, he's stuck with so many bad actors who don't know how to play funny.
-- Garrison Keillor

He who has a why to live can bear almost any how.
-- Friedrich Nietzsche

Here is the test to find whether your mission on Earth is finished: if you're alive, it isn't.
-- Richard Bach

Life consists not in holding good cards but in playing those you hold well.
-- Josh Billings

Life is half spent before we know what it is.
-- George Herbert

Like all sciences and all valuations, the psychology of women has hitherto been considered only from the point of view of men.
-- Karen Horney

My formula for living is quite simple. I get up in the morning and I go to bed at night. In between, I occupy myself as best I can.
-- Cary Grant

Only a few things are really important.
-- Marie Dressler

The purpose of life is a life of purpose.
-- Robert Byrne

There is only one difference between a long life and a good dinner: that, in the dinner, the sweets come last.
-- Robert Louis Stevenson

We can't plan life. All we can do is be available for it.
-- Lauryn Hill

When I stand before God at the end of my life, I would hope that I would not have a single bit of talent left, and could say, "I used everything you gave me".
-- Erma Bombeck

Your life is what your thoughts make it.
-- Marcus Aurelius

Action is the real measure of intelligence.
-- Napoleon Hill

Intelligence is the wife, imagination is the mistress, memory is the servant.
-- Victor Hugo

A hug is like a boomerang - you get it back right away.
-- Bil Keane

A man reserves his true and deepest love not for the species of woman in whose company he finds himself electrified and enkindled, but for that one in whose company he may feel tenderly drowsy.
-- George Jean Nathan

A woman knows the face of the man she loves as a sailor knows the open sea.
-- Honore de Balzac

Being deeply loved by someone gives you strength, while loving someone deeply gives you courage.
-- Lao Tzu

I like not only to be loved, but to be told I am loved.
-- George Eliot

If you live to be a hundred, I want to live to be a hundred minus one day so I never have to live without you.
-- A. A. Milne

If you press me to say why I loved him, I can say no more than because he was he, and I was I.
-- Michel de Montaigne

Love is a game that two can play and both win.
-- Eva Gabor

Love makes your soul crawl out from its hiding place.
-- Zora Neale Hurston

When I was born I was so surprised I didn't talk for a year and a half.
-- Gracie Allen

A soft refusal is not always taken, but a rude one is immediately believed.
-- Alexander Chase

Forgive your enemies, but never forget their names.
-- John F. Kennedy

It is easier to forgive an enemy than to forgive a friend.
-- William Blake

The weak can never forgive. Forgiveness is the attribute of the strong.
-- Mohandas Gandhi

How can a society that exists on instant mashed potatoes, packaged cake mixes, frozen dinners, and instant cameras teach patience to its young?
-- Paul Sweeney

A psychiatrist asks a lot of expensive questions your wife asks for nothing.
-- Joey Adams

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Posted By OracleOnDemand to Oracle Applications at 11/12/2009 09:23:00 AM