Professional Documents
Culture Documents
Item Attributes
Purchased : Enabled
Purchasable : Enabled
Transactable : Enabled
Stockable : Optional
Reservable : Optional
Inventory Item : Optional
Customer Ordered : Enabled
Customer Order Enabled : Enabled
Internal Ordered : Disabled
OE Transactable : Enabled
Shippable : Optional
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, SupplierPurchasing 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
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.
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,
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.
The entire Drop shipment process flow can be best understood as figure below:
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:
Where the seller sends the purchase order to the supplier for the full quantity that the customer had
ordered
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.
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.
2.
3.
4.
5.
6.
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:
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
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.
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.
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
(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.
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
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.
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:
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
7.Enter Invoice
This is also called Receivables interface, that mean information moved to accounting area for
invoicing details.
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.
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.
These are the typically data flow of a order to cash model for a standard order.