CAL to-Be Order Management and Shipping Execution v.02 12-Dec-2013

Business Process Study

Chemfab Alkalis Limited

Business Process Mapping

Oracle R 12.1.3 Order Management To Be Mapping

Author : Vinodh Kumar R & Selvaraj R

Creation Date : 06-Dec-2013

Last Updated : 12-Dec-2013 Control Number : OM/Process/01

Version : 1

Document Control

Revision DetailsDateAuthorVersionChange Reference

25-Nov-2013Vinodh Kumar R & SelvaRaj RDraft 1.0

DistributionS.No.NameDepartmentPositionSignatureDate

1.Mr. VedamurthyMarketingDy. Manager

2.Mr. SanthoshExciseJr. Officer

3.

4.

5.

Note To Holders:

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A. Introduction

Objective

The objective of the document is to provide an overview of solution design for the Order to Cash cycle, which will be implement in Chemfab Alkalis Limited with respect to Oracle EBS 12.1.3.

Scope

The scope of the document is to provide To Be process based on the understanding from the reference manuals and interaction with the process owners. The existing process has been identified based on the study conducted at Chemfab Alkalis Limited.

This document will help the process owners in understanding the existing sales process followed in Chemfab Alkalis Limited and the To Be process which will be implemented that best suits the business requirements.

The To Be process has been designed considering the functionalities available in Oracle EBS 12.1.3, limitations of the application and the common process followed in Chemfab Alkalis Limited. Even though there are three different business divisions that operate under Chemical Private Limited operation, the process has been considered common for all the divisions.

The document will help in understanding the high level and detail To Be process. The activities under each process are explained in detail along with the accounting entries where ever applicable.

The document will be considered for update if any process needs to be amended in line with Oracle EBS 12.1.3 and the changes will be accommodated and recorded based on the approval from core process owners.

B. Legends / Abbreviations

Legends

The activities in the process flow have been depicted using various colors to differentiate the nature of activities. Following are the colors and the nature of the activities that has been followed to design the process flow diagram

Oracle

Customization

Manual

Table of Contents S.No. Title

Page No.

1. General Sales Process..... 6a) Export Sales Process

b) Dealer Sales Process

c) Domestics Sales Process

d) 100% EOU Sales Process

e) SEZ Sales Process

f) Trading Sales process

g) Finished Goods Purchase (FGP)Sales Process

h) Staff Sales Process

i) Sample Sales Process with ED without ED

j) Supplementary Invoice

2. E1 Sales Process ... 123. Residual Sales Return (RMA)...... 144. Annexure Points.. 16C. Order to Cash - (To Be Process)

1. General Sale Order

Process Description

BRS IDBRS Proc NameBRS DescriptionOracle Fitment (To-Be)

Export SalesDomestic

Sales

Zone Sales

Sales through Trading organizationFinished goods Purchase and sales through Bonded organizationSupplementary Invoice

Staff Sales

Sample SalesSale Order QuotePO Entry, Sale Order and Order Acceptance Shipping and InvoicingPaymentStock Availability

Shipping & Invoice Payment

Quotation prepared based on the Customer Inquiry done Manually.It is Old Customer Quotation will create directly done Manually.If New Inquiry, then Customer need to be Created based on the Purchase Order confirmation.

It is also applicable for Contract Customer & Government Customer.After Inquiry process completion Performa Invoice is Created & sends to Customer for PO creation. Purchase Order received directly from the Customer or Dealers/AgentOrder Entry and Acceptance. In case of Agent/Dealer, Bill to location is Dealer location & Ship to location is dealers Customer location

Performa Invoice CreationShipping quantity based on the Concentration value received from Lab/Process & Net Weight from weighment transaction. Invoice Weight for Chlorine based on the plant DCPre-Export Invoice prepared and given to the customs. For customs clearingShipping and Commercial Invoice prepared based on the LC/PO documents from Customer

Invoice & proof of dispatch document submitted to bank. Payment received from the customer via bank (Bank Reference).

Verify Raw material availability in CAL, Purchasing planned.

If Stock is not available, Increase the Stock by Purchase Order & Receipt.

Process Manufacturing for Finished Goods Completed.

Lab Inspection Result Accepted then, delivered to Customer location based on the weighment.

In case of Quality issue at the time of Lab Testing, Quantity is re-assigned to other Customer who can accept the black spot concentration material

Sale Order document prepared and given to Excise for invoicing. Logistics organized by Marketing.

Payment received from the customer via bank / Cash.

Material is dispatching to 100% Export Oriented Unit then Customer need to provide the CT3 form based on that ARE 3 will generated & send along with the Invoice.

When material is dispatch to SEZ zone Customer then CAL needs to prepare the ARE1 & send along with the Invoice.

Both the above two document received from the customer within 90 days from the date of sale with their excise authority certification which will be filed by CAL authority

Based on the Custom & Excise document weighment is taken and dispatch the material to customer based on the net weight.

CAL will collect the Form I form from the Customer for the Transaction

When material is not available in the stock.

Create the Purchase Order to Supplier.

In Trading Supplier will deliver the material to CAL location and CAL will book the sale Order with the same duty pass on to the Customer. For this trading activity data will be updated in RG 23 D register.At the time of sales whatever collected the duty to be passing on to customer. Sales entry to be updated in RG 23 D register

Weighment of actual weight of goods & shipment of goods to Customer location.In the FGP Supplier will deliver the material to CAL Inventory, After receipt of material RG 1 register will hit.Weighment of actual weight of goods & shipment of goods to Customer location. Whatever collected the duty at the time purchase that should be passing on to customer.Supplementary Invoice is applicable to in Two Cases

When Party Cylinder is under repair activity that time Supplementary Invoice is Created additional to normal Sales Invoice based on the Plant advice. For Eg. Value Change, Painting, Testing Charge etc.

When different in the Price or ED, Tax after sales that time Supplementary Invoice will created additional to normal sale order based on the marketing advice.

Based on the Staff Requirement Common Sale Order Created with ED & Other Taxes

Dispatch of Goods to Employee manually after receipt of amount

Bill/Invoice issued to Employee

Payments received from the Staff via Cash.

Sample Material is dispatched to Customer based on Customer Inquiry

Manual Invoice is created, If ED & Taxes are available create the Invoice with tax else create Invoice with Zero Value. Oracle Sales Quote Process

Confirmed quotation item & Customer detail create in oracle

Confirmed quotation Converted as Sale Order.

India Location OM

Enter Taxes

Freight charge

Enter and Book the Sale Order based on the Customer Purchase Order In the Case of Export Performa Invoice is generated based on the Order confirmation Launch Pick Release is process of generating the Move order Number for material movement.

Weightment and concentration meter data is entered by dispatch user. Based on that Invoice quantity will be calculated. The Calculated qty allocated for shipping in Transact Move order Screen. Transact move order is the next process it will pick the material from the actual Subinventory to staging Subinventory.

Once ship confirm qty depleted from the staging sub-inventory to Customer /Dealer

ARE 1,CT3 & ARE 3, Packing List, AWB/Bill of Lading, Certificate of Origin need to be Create manually not in Oracle India - Excise Invoice Generation is the concurrent process of generating the Excise Invoice

Auto invoice Master Program process interface OM data to AR

Sales Order Line status

1) Entered (OM): Order is saved but not booked

2)Booked (OM): Order is Booked

3)Awaiting Shipping (OM): Order is booked but lines are not yet picked.

4)Not Ready to Release (SE): A delivery line may be in this status when it is interfaced manually into Shipping, is not scheduled and has no reservations. When lines are imported automatically from Order Management this status is not used.

5)Released to Warehouse (SE): Pick Release has started but not yet completed. One of the reason could be allocation have not been pick confirmed. The Pick Release process creates a Move Order Header & Mover Order Line in Inventory. This is a common status for users that perform a two-step pick release process. This status indicates that inventory allocation has occurred however pick conformation has not yet taken place.

6)Ready to Release (SE): Order Line is booked and passed to shipping execution. The line is now eligible to pick Release.

7)Backordered (SE): The status of Back ordered is assigned to a line under the following circumstances.

The Pick Release process attempted to allocate inventory to the line and all or a partial quantity of the item was not available. In this case the system automatically backorders the discrepant quantity.

At Ship confirm the user enters a shipped quantity for an item that is less than the original requested quantity.

The user manually Backorders the entire delivery.

8)Shipped (SE): The delivery line is shipped confirmed.

9)Confirmed (SE): The delivery line is shipped or backordered and the trip stops are open.

10)Picked (OM): Pick release is complete, both allocations and pick confirm

11)Picked Partial (OM): This status occurs when a delivery line is not allocated the full quantity during Pick Release and Ship Confirm has not occurred

12)Interfaced (SE): The delivery line is shipped and Inventory interface concurrent process is complete.

13)Awaiting Fulfillment (OM): When fulfillment set is used, Not all shippable lines in a fulfillment set or a configuration are fulfilled

14)Fulfilled (OM): All lines in a fulfillment set are fulfilled.

15)Interfaced to Receivables (OM): The order is linked with Receivables and the invoice is created.

16)Partially Interfaced to Receivables (OM): This status is used in a PTO flow and indicates that the particular PTO item is required for revenue.

17)Closed (OM): Closed indicates that the line is closed.

18)Canceled (OM): Indicates that the line has been completely canceled. No further processing will occur for this line.

Trading1. Purchase Order is created for Finished goods or other items for sales2. When material is received, it is delivered to Trading Inventory Org. Transaction will update in RG 23 D register.3. Sale Order is entered and booked. 4. Launch pick release is performed, Move order is transacted.

5. With the Delivery Id and Sale Order No, Match Receipt Trading is done to match the Duty at Receipt with Duty at Sales Order.

6. Ship Confirm is done, Delivery Id is created. 7. India Excise Invoice generation concurrent will generates Excise invoice and Transaction will be updated in RG 23 D register

Finished Goods Purchase and Sales

1. Purchase Order is created for Finished goods or other items for sales

2. When material is received, it is delivered to Bonded Inventory Org. Transaction will update in RG 1 register.

3. Sale Order is entered and booked.

4. Launch pick release is performed, Move order is transacted.

5. Ship Confirm is done, Delivery Id is created.

6. India Excise Invoice generation concurrent will generates Excise invoice and Transaction will be updated in RG1 register

1. Manual Invoice Entry:

a. Manual Invoice is created in Receivables Responsibility.

b. Enter the date of this transaction

c. Enter the customer Bill-To Name and Location d. Enter the Payment Term for this Transaction

e. Enter the Payment Term for this Transactionf. Receipt method to indicate payment by automatic method,

g. Enter the Remit to Address for this transaction.

2. The Invoice is attached with Original Invoice and sent to customer.

a. Common Customer for Staff Sales is created.b. Sale Order is entered and booked in System against the Common Customer.

c. Launch Pick Release and Ship Confirm Process is performed in system.d. Excise Invoice is generated

a. Manual Invoice is created with zero value.

b. ED & Taxes can be attached to manual Invoice if Sample Quantity is more than 1 Kg. c. If Sample Quantity is less than 1 Kg ED is not applicable

2. E1 Sales Process:

Process Description

BRS IDBRS Proc NameBRS DescriptionOracle Fitment (To-Be)

OM-01AE1 Sales

When material is not available in the stock

Create Purchase Order to Supplier with bill to CAL & delivery to Customer place

Material will directly deliver to Customer place from Supplier & Supplier will raise Invoice to CAL for payment of Base value alone.

CAL will raise a Invoice on Customer based on their Sale Order available with us.

Duty benefit will directly avail by Customer from CALs Supplier Invoice.

CAL will raise the base value Invoice to Customer to collect Payment Receipt

CAL will collect the E1 form from the Customer for the Transaction Process:

Confirmed quotation item & Customer detail create in oracle

Confirmed quotation Converted as Sale Order.

India Location OM

Enter Taxes

Freight charge

Enter and Book the Sale Order bill only based on the Customer Purchase Order Create the Purchase Order with two way matching and approve the same After material movement Raise the Payable Invoice to Supplier for Payment and Raise the Receivable invoice for sale order base value to collect payment from Customer

3. Residual Sale Return (RMA):

Process Description

BRS IDBRS Proc NameBRS DescriptionOracle Fitment (To-Be)

OM Return(AN-54)Sales Return

Sale Return quantity is based on the Residual Quantity (Cl2 & H2), which is returned back from Customer.

For Other Products actual Quantity based on the weighment.

Material Inward is delivered of residual material to the Shop floor for Weighment.

If Payments is required is based on the Customer Claim, else there is no payment for residual return.

Return Material Authorization Process:-

Sale Order Creation

1. In Sales Order returns Customer, Price List, Sales person, Currency, Bill To, Warehouse to be received, is entered.2. a. If Customer Claim for the payment, then Order type is selected as RMA with Credit.b. If Customer does not Claim for Payment, then Order type is selected as RMA without Credit

3. In Line Items select a defined reason. In Reference Type mention if want to refer to a particular Invoice, Purchase Order or Sales Order. RMA Receipt 4. In Receipt, query for Inventory Organization and RMA No. (Sales Order No.). 5. Mention the Qty, Sub Inventory, Destination type as Inventory. 6. Once the transaction is saved a receipt number is created. Generate Credit Memo 7. If Customer Claims for Payment then Credit Memo is created in Accounts Receivable Responsibility.

Annexure Points:S.No.AN.NoBusiness ProcessRICE TypeSolution

152Yearly Budget --> Qtr target --> Based on Production Output plan --> Monthly Sales Target definedReportReport requirement to analyze the Yearly budget with quarterly target. This will be based on the Production output plan and Monthly sales Target.

253QUOTE - ORDER - INVOICEStandard ProcessStandard Sale Order Process from Quote(Sale Order creation( Shipping Transaction(Invoice is available.(Refer OM1 Flow Chart for Oracle Process)

354Daily dispatch / invoice trackingReportDaily material dispatch and invoice tracking report requirement. Core team will provide the report format

456Sales return -- very rareStandardRMA Process is available to create Sale Order Creation(Receipt(Credit Memo creation in system.

557Dealers - 5 across south India (Trading)Standard & Report5 Dealers across south India. Sales transactions happen and related details to be captured in report

658End Customers - 450 nosStandardCustomer Master will be created and data will be captured in system.

759Direct billing to customer also existStandardManual Invoice to Customer also available

86050 dispatch / dayStandardShipping Transaction is done in system to capture dispatch

961Secondary Sales Details to be capturedStandardPrice can be changed after Sale order is created. This types of price changes applicable for E 1 sales

1062Sales Analysis - Primary / SecondaryReportReport requirement for sales analysis like Up & Down 90 KMS Primary; Up & Down 999 KMS Secondary; Above 1000 KMS Territory

1163Bill to qty to be exact as reqd qty. Tolerance limit with approval.StandardSale Order can be Amended to change the price. It is booked and shipping transaction can be done for reqd qty.

1264Credit limit control reqdStandardCredit limit fixed to the customer. If it is exceeds further shipping to be restricted.

1365FG Transport Vehicle trackingReportContract vehicles - GPRS installed in 7 vehicles to be increased - GRPS Interface.

1467Communication Template on delivery dispatch detailsCustom & ReportSales and dispatch details to be communicated to marketing and related department for reference and follow ups. At the Time of Dispatch Mail Alert is Required.

1568Residual Sales AccountingStandardThis will not treat it as sales return, Chlorine and Hydrogen cylinders have remaining qty. This will be added in inventory. Some customer gives the debit note for the remaining qty. CAL will raise the credit note to the customers.

1671Volume based discountStandard & ReportVolume based discount applicable for some customers. Discount will be calculated based on the sales transactions for the particular period.

1772Sales Invoice - Product wise calculation: caustic soda (33%/48%) - tanker based - Attribute: Concentration (gross Star X Concentration) calculation drives price; On net weight we pay the freightCustomFG weight is calculated based on the concentration report from Lab and Weighment net weight. Sales invoice qty = Weighment net weight X Concentration value in Percentage / 100. Calculated value update it in Transact move order screen.

1873Chlorine - cylinder based; baby() - normal(900kgs); no. Of cylinder X 900kg - priceStandardChlorine Cylinder is weight is constant 900Kg per Cylinder. Weight is calculated based on the cylinder count. There is no baby cylinder in future it may use.

1974Hydrogen - Cum; no. Of cylinder X 6.725CUM - priceCustomizationCylinders is 6.725 cubic mtr only. 134 cylinders in small truck. Fixed Cylinders - 240 in Tarrus Vehicle - fixed cylinders. Pricing is also in per c mtr

2075HCL: Gross-StarStandard and customizationHCL shipping quantity based on the weighment net weight.

For Weighment weight

2176Sodium Hypo chloriteStandard and customization Sodium Hypo Chlorite shipping quantity based on the weighment net weight

For weighment weight

2277Sodium Sulphate - SackStandard and customization Solid material Packing in 50 kgs weight. Sales invoice against the weighment net weight

For weighment weight

2378Caustic soda flakes (New product)Standard and customization Solid - pricing per ton - net weight - based on weight bridge. Not currently used.

For weighment weight

2483Customer acknowledgement of the sale invoice - vehicle reporting at CAL security stage - any deviation to be highlighted. This is for freight / shortage / halting calculation.ReportVehicle shipped time, acknowledged qty , in time and out time at customer, to be captured. Report required based on this. Valuation for order value.

25146Daily / Monthly stock ReportReportDaily and monthly stock report for all types of inventory items

26162Export Invoice and Packing with cylinder Nos.ReportExport sales invoice will contains the cylinder number and related details

27164Closing stock Valuation working ReportClosing stock valuation based on the available stock and cost of the item. Report requirement

28199Daily Finished Goods movement registerStandardRG-1 Register - Duplicate record in AN No. 146

29213E1 Sales invoice module to incorporateReportUnavailability of FG stock. CAL raises the PO to vendor. Vendor ship the material directly to Customer with ED and cess. Customer will take the ED portion from vendor invoice. CAL raises the invoice to customer only sales value. E 1 invoice and related report requirement.

30222Veh no to be picked from Security for raising F.G invoicesCustomAt the time sales invoice vehicle number details will be captured.

31223Concentration to be picked from Lab For calculating the chargeable weight during F.G invoices raisedCustomConcentration meter used for QA analysis. Data will be updated to concentration meter software. Concentration meter result used for calculate the shipping qty of caustic soda.

32240Hydrogen - vehicle tracking - minimum kilometer - 22 trucks contracted - 2500 KM PM.Custom & ReportVehicle Tracking Report from Custom Interface

33NewDealer's Customer Quantity need to displayed with Customer NameCustom & ReportReport is required to view the Dealer's Customer Name & Quantity

34NewSale Order Revision need to be capture based on the ReasonReportReport is required to view the Sales Revision History

35NewOverdue/Credit limit alert is required at the time of raising the InvoiceStandardAlert is required at the time of sale Order raising Invoice is released till the Sale order credit limit gets over

36NewSale Order Status Report is required (Product Customer Name, PO No. & Date, Order Qty Supplier Qty, Balance Qty, Basic Price, ED, ST, Freight, Delivery Price, Credit Period)ReportSale Order Report is Required

37NewCustomer wise Cylinder Tracking Report required based on the AgeingCustom & ReportCylinder Tracking Report based on the ageing (1-30 days, 31-60 days, 61-90 days & above 91 days)

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OM1 - Direct Sale

Quotation & Sale Order

Proforma Invoice

Invoice

Production & Inventory

Start

NewCustomer?

Sale Order Entry

No

Yes

QuoteConfirmation ?

Quotation

Quote is given for several usersConfirmed quote create in Oracle

Sale Order Booking

Taxes PriceFreight charge

Batch(Production Order)

Production

Finished Goods

Pick Release

Pick Confirm

Ship Confirm

Account Receivable

Invoice

Delivery Challan

Form JJ / 403 / (Specific to the destination)

End

Yes

Manual

Oracle

Cash Received

ARE1, ARE3, Certificate of Origin, AWB/Bill of Lading, E-Mail : Dispatch Detail

Pre-Export Invoice, Shipping & Commercial Invoice

Weight populated from weighbridge Interface

Quote Preparation

Customization

Customer /Dealer

OMDS 1.1

OMDS 1.2

OMDS 1.3

OMDS 1.4

OMDS 1.5

OMDS 1.6

OMDS 1.8

Net weight is calculated based on the Empty Vehicle and Loaded Vehicle

OMDS 1.9

Quote prepared based on Customer Inquiry

No

Enquiry

Advance Receipt

Lab Result Entered in Collection Plan

Direct Sale of CAL (within state and interstate)Export SalesTrading Sales and FGP SalesE1 SalesSEZ & 100% EOU Zone SalesSupplementary Invoice for price differenceDelivery to Dealer concern of customerSample SalesStaff Sales

Excise Invoice Generation Process

OMDS 1.8

OMDS 1.10

Export Order

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OM6 Sales Returns

Invoice

Inventory & Production

Quotation & Sale Order

Actual Sale Order numberTaxes Freight charge

Account Receivable

End

Manual

Inspection

Bill Receivable

Customization

RMA Receipt

Sale Return

Start

Delivery

Oracle

OMSR 6.1

OMSR 6.2

OMSR 6.3

OMSR 6.4

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P-05: E1 Sales

Supplier & Customer

Payment

Bill directly to CAL

Quotation & Order

Company / Marketing

New Inquiry

Yes

No

Quote

CustomerPurchase Order

Order Entry

Quantity Not available in Store

New Customer / Item Creation

Order Acceptance

Create PO

Deliver of FG material directly to Customer Location

Supplier Invoice to Customer for ED pass on. CAL will raise the Invoice for basic sales value

Receipt

End

Invoice from Supplier

Payment

E1OM-01

E1OM-02

E1OM-03

Start

End