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Order Management
Drop Shipment - Functional Setup and flow
A Drop Shipment occurs when a customer order is sourced from and
delivered by a supplier.
Order Management sends information to the Purchasing Application
to create that PO, and then when that PO is received (to indicate
shipment from the supplier to your customer), the order line is
automatically updated to indicate that it was fulfilled.
In this process, the company running Order Management is modeled
as the company to whom the end customer places the original
order.
Drop Shipment - Setup
You need to make sure these are attribute setup Correctly:
Item Attributes
Purchased : Enabled Purchasable : Enabled Transactable : Enabled
Stockable : Optional
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Reservable : Optional Inventory Item : Optional Customer Ordered
: Enabled Customer Order Enabled : Enabled Internal Ordered :
Disabled OE Transactable : Enabled Shippable : Optional
And ,your do set up for Order Source Type as External
Drop Shipment Your Setup checklist
Ensure you have created your Order Management Transaction Types
and linked your Transaction Types to order and line workflows that
support drop shipments.
Ensure the Oracle Workflow Background Engine is running. Ensure
all Drop ship locations you will use to perform drop shipments
have
the Ship To Site and Receiving Site defined. Ensure you have
defined the Internal Ship To Locations for your drop
shipment customers (Oracle Receivables Standard Customer window,
Business Purpose Details Tab).
Ensure your standard items have an associated List Price defined
within your PO Inventory organization (Oracle Payables Financial
Options window, Supplier-Purchasing Tab).
Drop Shipment - Process Steps
Create a Sales Order with line where the line source is External
Book and Schedule the Sales Order Run Requisition Import Process
Now the line status will be in Awaiting Receipt Login to the
Receiving Organization (Purchasing) who has been setup as an
Approver Run Requisition Import Create Purchase Order from the
Requisition Approve the PO Receive the full quantity Run Auto
Invoice Verify Invoice in Sales Order
Things not to forget in a DropShipment
Blanket POs will not used with Drop Shipment , the reason the PO
must be created when OM notifies PO that a Drop Ship order has been
created.
You cant cancelled Drop Shipments once Oracle Purchasing obtains
the receipt.
Standard Items can be used for Drop Shipment.
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Drop Shipment, BackOrders and Back to Back Order
Back Orders
The Oracle term backorder is a status on the order line or
delivery line indicating that you have tried to release an order
for picking in your warehouse, but that the pick release was
UNSUCCESSFUL because there was no available inventory.(Backorder
can be partial or complete). The Oracle term backorder does NOT
mean that you have open purchase orders for the out-of-stock item
from your vendors.
The term backorder is also used in business a little differently
than in Oracle. The term An item is on backorder usually means that
the item is not in stock, but the shipping company has already
placed purchase orders from their suppliers to restock the
item.
Back Order is when you do not fulfill the Sales Order, or if the
inventory is out of stock for delivery to customer.
Drop Shipment
Drop shipment on the other hand is a method of order fulfillment
where the organization taking the order does NOT maintain their own
inventory for the drop-shipped product, but fulfill their orders
through 3rd party vendors who directly ship to the end customer
ordering the product.
For example,
A orders item x from B B orders item x from C C ships Item x to
A. B bills A for the order, C bills B for the order
Back to Back Orders
In Back to Back order the shipment process is also completed
through OM as a standard order after the item is received against a
PO.
What is the major difference between drop shipment and back to
back order ?
In B2B the source will be internal but the item would be
procured after the order is created or after the demand is
made.
In Drop Ship the source will be external In Drop Ship orders,
material is directly shipped to the customer from the
supplier. Thus, inventory is not affected. In this case, only
logical receiving is done. But in the case of Back-to-Back orders,
material is taken from inventory.
Drop Ship orders may have many Purchase Orders connected to
them. In Back-to-Back orders one PO is tied to one Sales Order.
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More on Drop Shipment & Back to Back Orders(Functional)
High Points for EBS Base Functionality for Drop Shipment
Drop shipment order processing in EBS is managed using workflow
Drop ship functionality is based on source type of an order
line
(Internal/External) You can automate your PO/BPA release
creation based on ASL/sourcing rule
information Drop ship process uses standard OM workflows. You
can use Sales order Purchase order discrepancy report to
identify
discrepancies between the OM and the PO There is a links OM and
PO to provide visibility through entire supply chain
Flow.
The entire Drop shipment process flow can be best understood as
figure below:
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Points for Implementation Considerations
Order line attribute: Source Type (need to be external). You can
be defaulted from item or order type
Menu -> Responsibility Order Entry Super
User/setup/Orders/Types Setup an order type using the cycle defined
in the previous step (a),an order number
source, a valid standard value rule set. Item attributes (OM and
Purchasing)
You need to do the setup for these attributes:
-Purchased (PO) Enabled -Purchasable (PO) Enabled -Transactable
(INV) Enabled -Stockable (INV) Optional -Reservable (INV) Optional
-Inventory Item (INV) Optional -Customer Ordered (OE) Enabled
-Customer Orders Enabled (OE) Enabled -Internal Ordered (OE)
Disabled -Internal Orders Enabled (OE) Disabled -Shippable (OE)
Optional -OE Transactable (OE) Enabled
Setup requisition import parameters You can also use grouping by
Vendor You can also set the multiple distributions set to No ASL
and/or Sourcing rule relationship need to be setup for Automatic PO
creation Oracle recommends using a logical organization for drop
shipment. Exclude this organization
for planning purposes. It can be worked around using non
nettable Dropship subinventory
Back to Back Order
As mention above this is ability to create specific supply
orders for customer sales orders. These are main features avaible
in EBS
Designate specific items as B2B orderable Enter sales order
lines for these items, and have the supply automatically created
via a
requisition Have the requisition converted into a Purchase Order
or a release of a blanket Purchase Order View the requisition
number or PO number and its status from the Sales Order (using
reservation details window) Reserve the supply from the
Requisition to the PO and finally to the Sales Order once the
PO
is received Pick, ship and finally invoice the customer for the
product. Note to Buyers field in the requisition captures the Sales
order information Line status information shows the progress of the
order
PO Req Created PO Req Requested PO Created PO Received
If line is manually reserved it progresses to Awaiting Shipping
Changes and Cancellations on sales orders:
Reservation is changed Notification sent to Buyer
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drop Shipment is a process where the customer places a purchase
order on a company and this company instructs its supplier to
directly ship the items to the customer.
Drop shipments are done because of the following reasons:
Customer requires an item that is not normally stocked Customer
requires a large quantity of the item which is not available with
you It is more economical when the supplier ships directly to the
customer .
Types of drop shipment
If you see the real world scenarios this can be best categorize
as mainly under three heads as:
Type 1 : Full Drop Shipment
Where the seller sends the purchase order to the supplier for
the full quantity that the customer had ordered
Type 2 : Normal Shipments and Partial Drop Shipment
Under this scenario, If the seller has only part of the quantity
available for shipping to the customer, then that quantity is
shipped; a purchase order is created for the remaining quantity
which the seller was not able to fulfill. This is typically true
for single based item.
Type 3 : Normal Shipments and Full Drop Shipment
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In this scenario, the seller ships some goods from inventory to
the customer, and the other goods are always shipped from an
external source (supplier).
Process Flow for Drop Shipment (Adopted from User Guide)
Drop Shipments for Standard Items
1. Enter an order for drop ship item 2. Book the order 3. Run
Requisition Import 4. Create a purchase order from the requisition
5. Approve the purchase order 6. Receive against the purchase
order
Forward drop ship flow for ATO model
1. Enter a sales order for your drop shipped ATO model. 2.
Select your options. 3. Schedule and book order (schedule date
should default to request date for all lines). 4. Create you
configured item by progressing your order ATO Model line or running
the
Autocreate Configuration batch process. 5. Verify order and line
status. 6. Create a supply order (dropship requisition) by
progressing your configuration item line or
running the Autocreate Dropship Requisition batch process 7. Run
the Oracle Purchasing Requisition Import to create a purchase
requisition. 8. Create a purchase order for the requisition. 9.
Approve the purchase order. 10. Receive the purchase order.
Forward drop ship flow for ATO Item
1. Enter a sales order for your drop shipped ATO item 2.
Schedule and book order (schedule date should default to request
date for all lines). 3. Create a supply order (dropship
requisition) by progressing your configuration item line or
running the Autocreate Dropship Requisition batch process. 4.
Run the Oracle Purchasing Requisition Import to create a purchase
requisition. 5. Create a purchase order for the requisition. 6.
Approve the purchase order. 7. Receive the purchase order.
Non-SMC PTO model with drop shipped standard options
1. Enter a sales order for your PTO model. 2. Select options;
source type on the components will default. 3. Schedule and book
the order. 4. Run requisition import to create a purchase
requisition. 5. Create a purchase order for the requisition. 6.
Approve the purchase order. 7. Receive the purchase order.
Drop Shipment (Technical)
This section is going to help those who asked to provide some
more granular details for drop shipment some time back.
As discussed above and in last post drop shipment is the process
by which an organization takes orders from their customer and gets
it fulfilled by a 3rd party. The selling organizatoin places a
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purchase order to teh 3rd party (supplier) who ships the ordered
products to the end customer directly. There are a large number of
tables that contain data related to drop ship orders. For
example:
oe_order_headers_all and lines_all (order info)
po_requisition_lines_all, headers_all etc.( req. info)
po_headers_all, lines_all (po info) oe_drop_ship_sources_all (this
table contains the link between the req, po and the original
order)
Moreover, there are many more tables involved in this therefore
its better to have a understanding by corresponding ER diagram.
There is always a need to develop some of the custom report,
therefore understanding of understanding table is very very
important. Here are the same of underline tables details.
PO_LINE_LOCATIONS_ALL This table stores document shipment
schedules for purchase orders, purchase
agreements, quotations, and RFQs. PO_LINES_ALL
This table stores purchase document lines for purchase orders,
purchase agreements, quotations, and RFQs.
PO_HEADERS_ALL This table stores document headers for purchase
orders, purchase agreements,
quotations, and RFQs. PO_DISTRIBUTIONS_ALL
This table stores purchase order distributions.
PO_REQUISITION_HEADERS_ALL
This table stores requisition headers.
PO_REQUISITION_LINES_ALL
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This table stores requisition lines.
PO_REQ_DISTRIBUTIONS_ALL
This table stores requisition distributions.
PO_REQUISITIONS_INTERFACE_ALL
This is the Requisition Import interface table.
OE_ORDER_LINES_ALL
This table stores information for all order lines in Oracle
Order Management. OE_DROP_SHIP_SOURCES
This table stores relationships between order lines in
oe_order_lines_all table and associated oracle purchasing
requisitions in PO_REQUISITIONS_ALL and Oracle purchasing purchase
orders in PO_LINES_ALL.
RCV_SHIPMENT_LINES This table stores receiving shipment line
information.
Order Management(OM) Integration Options
OM is one of the most complex modules in EBS, and in typical
complex business model, the integration of other product or third
party cant be denied. Processing an Order requires integration with
many other business areas. Most integration points with other
Oracle products are implemented via PL/SQL-based APIs.Here is brief
discussion for Order Management EBS Integration points.
How Order Management integrated with iStore?
OM records customer orders placed via iStore, Order Capture and
other CRM applications. It validates setup for shipping and payment
options along with providing order status and the shipping
information to customers. Once the quote is converted into an
order, you can only make changes to
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the order through Order Management, prior to booking.
How Order Management integrated with Telesales?
Telesales eBusiness Center has several integrations with Order
Management. There is an Order tab to view order history and create
new orders.
How Order Management integrated with Cost Management?
OM call the the Cost Management CST_COST_API to obtain cost from
cst_item_costs or cst_quantity_layers when the Gross Margin feature
of OM is enabled.
How Order Management integrated with Field Service?
Field Service Report requires specifically that you setup Price
Lists, Units of Measure (UOM), and two Inventory Item Attributes in
Order Management. Price Lists contain the list price for an item.
Items could be material, but also labor and expenses like units of
driving distance. Once material, expense and labor transactions for
a task have been taken down on the Field Service Debrief, this
information is updated to Charges. In Charges the list price for
the item is received from Order Management and is used to generate
an invoice for a customer.
How Order Management integrated with Depot Repair?
This is used by Depot Repair to create RMA and Sales Orders,
validate customer accounts, and invoice customers for repairs.
How Order Management integrated with Install Base?
Information about Install Base trackable items is interfaced to
Install Base in the following ways:
Shippable Items: For both orders and returns, information is
interfaced to Install Base via Inventory Interface.
Non-Shippable Items: For both order and returns, information is
interfaced to Install Base via the Order Management Fulfillment
workflow activity Install Base also supports Internal Sales Order
transactions by appropriately creating /updating item instances as
a result of transactions between internal organizations such as
pick transactions, shipments, and receipts.
How Order Management integrated with Service Contracts?
Service Contracts need to pulls information from the Install
Base newly created customer records and creates an ownership
record.
Warranty: A Warranty contract is created when a Serviceable
product is shipped. Extended Warranty: An Extended Warranty
contract is created when an Extended Warranty
is sold on a sales order. Oracle EAM & OM integration
Subscription: Fulfillment starts after the contract approval
process. RMA: Service Contracts sends Order Management RMA
information
How Order Management integrated with Advanced Planning
System/Global Order Promising/ ASCP?
Order Management uses Advanced Supply Chain Plannings Global
Order Promising functionality to check the availability of ordered
items and to schedule order lines.Scheduled Order Lines are viewed
as demand by the Advanced Planning System.
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How Order Management integrated with Purchasing?
Order Management integrates with Oracle Purchasing in the
following functional areas:
Return Receipts: Order Management uses the Oracle Purchasing
Receipt functionality to handle Return receipts. When an item is
received, Purchasing calls Order Management to indicate delivery
and to get COGS information.
Internal Orders: Oracle Purchasing uses Order Import to create
internal orders. Drop-Ship Orders: Order Management integrates with
Purchasing to fulfill drop-ship orders.
It populates the PO requisitions interface table with
information for order lines that need to be fulfilled via an
external source.
How Order Management integrated with Bills of Material ?
This is integrated with BOM when models and kits are entered on
sales orders.Normally OM uses the Bill of Material defined for the
model or kit or explode the model into its components, for the
purpose of the user selecting options and for shipping
purposes.
How Order Management integrated with Workflow ?
Oracle Workflow is heavily used in EBS and specially to manage
Order and Line processing. These PL/SQL based Workflow is a natural
replacement for Order Cycles functionality. It provides a Graphical
User Interfaces for defining activities, notifications, flows and
viewing flow status.
How Order Management integrated with Advanced Pricing ?
OM is tightly integrated with Advance Pricing which includes
price lists, modifiers, and agreements. Order Management, through
its Sales Agreement functionality, creates price lists and pushes
them into the Advanced Pricing tables. Order Management calls the
Pricing Engine to make pricing requests during the processing of
orders, and receives pricing information back from Advanced
Pricing.
How Order Management integrated with Configurator ?
Order Management integrates with Oracle Configurator to support
ordering and validation of configurations. The Configurator window
is a Java Applet that can be launched from the Sales Order
form.
How Order Management integrated with Oracle Payment ?
As we know Oracle payment is new product and OM accepts Credit
Card information when entered on orders. It integrates with Oracle
Payment to validate this information and get Credit Card
authorizations. This information is then interfaced to
Receivables.
How Order Management integrated with Receivables ?
Order Management integrates with Oracle Receivables in the
following function areas:
Invoice Interface: Order Management sends invoices and credit
memos to Receivables via the Invoice Interface workflow activity.
The seeded Invoice Interface - Line workflow sub-process populates
the Receivables interface table.
Receipts: Order Management calls Receivables Receipt API to
create receipts for prepaid credit card orders. Order Management
receives a payment-set id from AR when the receipt is created, and
then passes that id back to AR in the autoinvoice tables at
invoicing time so that the invoice can be matched to the
receipt.
Tax: Order Management calls the Global Tax Engine APIs to
default the Tax Code (ARP_TAX.GET_DEFAULT_TAX_CODE) and to
calculate estimated tax
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(ARP_PROCESS_TAX.SUMMARY) for the order Line. The estimated tax
value is now stored on the line and re-calculated only when any of
the attributes affecting tax change. Information about the tax
value is also stored as Line Price Adjustments.
Credit Management: If the Credit Management product is
installed, notifications are sent to it by Order Management when an
order or line goes on credit hold, to initiate a credit review. If
the credit review results in a decision to approve the order, a
business event is posted which OM subscribes to and then releases
the credit hold.
How Order Management integrated with Payables ?
OM accesses the AP Bank Accounts table to populate the Credit
Card LOV when an order is being entered with a payment type of
Credit Card. Additionally, if a new credit card number is entered
and the authorization of that card through iPayment is successful,
Order Management calls an AR API to create a new bank account
record for the customer in the Bank Accounts table.
How Order Management integrated with Inventory Management ?
Order Management integrates with Oracle Inventory Management
through Managing Reservations.
You can create reservations to on-hand quantities from the Sales
Orders form.
How Order Management integrated with Trade Management ?
Order Management can receive RMA orders and lines from Oracle
Trade Management as part of its dispute handling functionality.
Order 2 Cash Cycle
Order Management
You enter sales and return orders within an operating unit. You
define price list and discount names for the entire instance. You
can also define price list
lines, discount lines, and quantity breaks for the entire
instance. If you have more than one validation organization
in the instance, you may experience error messages when querying
a price list if the inventory item is not valid in your operating
units OM validation organization. Thus it is best to define price
lists by operating unit.
You can check credit within an operating unit. You assign order
lines and shipments to a specific warehouse (inventory
organization). You pick release orders and print pick slips by
operating unit. You ship confirm orders and print shipping
documents by inventory organization. You can
ship from another operating unit, even if in a different set of
books. You receive returned goods in the inventory organization
specified on the return. Inventory and Manufacturing integration
functions, such as reservations, available to promise
checking, sales order demand, and assemble to order job creation
are processed in the appropriate inventory organization.
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Order Management /Account Receivable
You setup customers for the entire instance but addresses for
each operating unit. You merge customers and addresses within an
operating unit. You report supplier/customer netting within an
operating unit.
Account Receivable
You setup receivable account defaults within an operating unit.
You produce invoices, statements, and dunning letters within an
operating unit. You enter and track customer commitments within an
operating unit.
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Understanding data flow for Internal Orders
The process flow for Internal Orders
Internal orders normally start with creation of requisitions in
Oracle Purchasing (which is created as Internal Sales Orders) .
Once the requisitions created from the MRP and Inventory
modules, the Requisition Import program must be run in order to
move records from the requisition interface tables to the
historical PO_REQUISITION_HEADERS_ALL, PO_REQUISITION_LINES_ALL and
PO_REQ_DISTRIBUTIONS_ALL.
Now next is to create internal requisitions from Purchasing
module.When each requisition is approved, data will be inserted
into the MTL_SUPPLY table. When the items on the requisition are
stocked in inventory, the supply data can be viewed from the
inventory form called Item Supply/Demand.Once the Internal
Requisition is approved, a user should run Create Internal Sales
Orders (from a Purchasing responsibility) to load the internal
sales orders interface tables called in Order Entry.
After the Creation of Internal Sales Orders has completed, a
Import Orders concurrent program need to run from an Order
Management.
at this stage, Oracle order Workflow will process the internal
sales order using the workflow definition listed for the
Transaction Type definition in Order Management. When the workflow
completes the Shipping Network is checked to see if the Transfer
Type between the source and destination organization is In transit
or Direct.
You can use Oracle Order Entry/Shipping to define order cycles,
approvals and holds.
Internal Requisitions use the Account Generator, which
automatically builds account distributions. You can specify only
one accounting distribution per inventory sourced line.
This internal requisition process provides the features needed
to define your inter- organization shipping network. For transfers
between two organizations, you can specify whether to use in
transit or direct shipments. You can also require internal
requisitions for transfers between specific organization.
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Understanding data flow for Standard Order
1. Order Entry This is first stage when Order in enter in
system.When the order is entered it basically create a record in
order headers and Order Lines table.
oe_order_headers_all (Here the flow_status_code as entered)
oe_order_lines_all (flow_status_code as entered) ( order number is
generated)
2.Order Booking
This is next stage , when Order which is entered in step 1 is
booked and Flow status changed from Entered to Booked.At this stage
, these table get affected.
oe_order_headers_all (flow_status_code as booked ,booked_flag
updated) oe_order_lines_all (flow_status_code as awaiting shipping,
booked_flag updated) wsh_new_deliveries (status_code OP open)
wsh_delivery_details (released_status R ready to release)
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Same time, Demand interface program runs in background And
insert into inventory tables mtl_demand
3. Reservation
This step is required for doing reservations SCHEDULE ORDER
PROGRAM runs in the background and quantities are reserved.Once
this program get successfully get completed , the mtl_reservations
table get updated.
4. Pick Release
Ideally pick release is the process which is defined in which
the items on the sales order are taken out from inventory.
Normally pick release SRS program runs in background . Once the
program get completed these are the table get affected:
oe_order_lines_all (flow_status_code PICKED )
wsh_delivery_details (released_status S submitted for release )
mtl_txn_request_headers mtl_txn_request_lines
(move order tables.Here request is generated to move item from
saleble to staging sub inventory)
Mtl_material_transactions_temp (link to above tables through
move_order_header_id/line_id
5.Pick Confirm
Items are transferred from saleble to staging Subinventory.
mtl_material_transactions mtl_transaction_accounts
wsh_delivery_details (released_status YReleased )
wsh_delivery_assignments
6.Ship Confirm
Here ship confirm interface program runs in background . Data
removed from wsh_new_deliveries
oe_order_lines_all (flow_status_code shipped)
wsh_delivery_details (released_status C Shipped)
mtl_transaction_interface mtl_material_transactions(linked through
Transaction source header id) mtl_transaction_accounts Data deleted
from mtl_demand,mtl_reservations Item deducted from
mtl_onhand_quantities
7.Enter Invoice
This is also called Receivables interface, that mean information
moved to accounting area for invoicing details.
Invoicing workflow activity transfers shipped item information
to Oracle Receivables. ra_interface_lines_all (interface table into
which the data is transferred from order
management)T Then Autoinvoice program imports data from this
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Table which get affected into this stage are recievables base
table. ra_customer_trx_all (cust_trx_id is primary key to link it
to trx_lines table and
trx_number is the invoice number) ra_customer_trx_lines_all
(line_attribute_1 and line_attribute_6 are linked to
header_id (or order number) and line_id of the orders)
8.Complete Line
In this stage order line leval table get updated with Flow
status and open flag.
oe_order_lines_all (flow_status_code shipped, open_flag N )
9.Close Order
This is last step of Order Processing . In this stage only
oe_order_lines_all table get updated.
These are the table get affected in this step.
oe_order_lines_all (flow_status_code closed,open_flag N )
These are the typically data flow of a order to cash model for a
standard order.