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S.Ananthakannan
MGIA123Z @ Motorola.com
Drop Shipment
Supplier Customer
Invoice Purchase
order
ASN Invoice
Purchase
order
Your
company
no inventory is required
reduced order fulfillment processing costs
reduced flow times
elimination of losses on non-sellable goods
elimination of packing and shipping costs
reduced inventory space requirements
reduced shipping time to your customer
allows you to offer a variety of products to your customers
Order Placement
You can enter orders using standard Order Management functionality, and decide at the
time of entry whether a particular line will be drop-shipped. As with standard sales
orders, you can modify orders or lines that you intend to drop ship after you have entered
them.
Purchase Requisitions
Order Management creates purchase requisitions when you use the Purchase Release
concurrent program with Oracle Purchasing Requisition Import program. Purchase
Release acts upon eligible lines that you want to fulfill from an external source. To use
this program, add the Purchase Release workflow process to any order workflow you use
with drop-shipped orders. Order Management provides reports to reflect item numbers
and purchase quantities.
Standard holds and approvals functionality controls drop-ship sales orders. You can
implement holds and approvals at different stages in your order workflow to control the
drop shipment process. For example, if your supplier reserves the right to refuse returns,
you can add an approval step to your order workflow to ensure that the customer will not
receive a credit unless your supplier notifies you that they accept the returned item.
If you place a hold on a line before you run Purchase Release, Order Management
enforces the hold automatically. However, after a purchase order has been generated for
your drop-ship line, you must control holds manually by coordinating with your supplier.
The Sales Order and Purchase Order Discrepancy Report displays held orders for
your review.
Enter, copy, or import an order. If the seeded workflow is assigned to the orders type,
then both internally and externally sourced lines can proceed through this workflow. The
seeded workflow branches are based on source type. If the workflow is a custom
workflow, ensure that it includes workflow steps necessary to process externally sourced
lines. If the order type has the default value for the source type field set as External, all
the lines of this order will have the source type ” EXTERNAL”. Only standard items
may be drop-shipped; kits and models cannot be drop-shipped. Depending on how
your order flow is defined, you can change the source type until the line has been booked.
A source type of null will be treated as an internally sourced line.
----- On clicking Sales orders, a new sales order screen to enter sales order header
details will open.
The Purchase Release concurrent program processes eligible lines with a source
workflow type of External and passes information to Oracle Purchasing. Run Purchasing
Requisition Import program to create purchase requisitions based on this information.
When you submit the program, ensure that you set Requisition
Purchase Release
After booking the Sales order need to run Purchase Release concurrent program. It
processes eligible lines with a source type of External and passes information to Oracle
Purchasing.
Schedule line:
Supply Line:
Purchase Release:
Ship line:
Purchase Requisition
After submit the PO Release the Run Purchasing Requisition Import program to
create purchase requisitions based on this information. When you submit the program,
ensure that you set Requisition.
2. In Parameters window ----- Enter Import Source: Order Entry (optional).Don‘t change
other parameter entry details.
3. Submit the request. Open and view the output.
4. Check to ensure that Approve requisitions has been created by performing a right
mouse click on the order line, go to Additional Line Information then select Drop Ship.
5. NavigateActions Additional Line Information- Tab: Drop Ship. Check
PO requisition the status, it should be approved. Copy the requisition number and do all
necessary steps in PO side.
1. Navigation:
Order Management>Orders, Returns>Reports, RequestsRun reports
(Use OM Manager or OM SU Responsibility)
2. Open the parameter form
---- Enter Sort by like Customer name OR sales order OR others.
---- Enter Sale order Number.
We generally create standard purchase orders for one–time purchase of various items. We
create standard purchase orders when we know the details of the goods or services you
require, estimated costs, quantities, delivery schedules, and accounting distributions. If
we use encumbrance accounting, the purchase order may be encumbered since the
required information is known.
We create blanket purchase agreements when we know the detail of the goods or services
we plan to buy from a specific supplier in a period, but we do not yet know the detail of
our delivery schedules. We can use blanket purchase agreements to specify negotiated
prices for your items before actually purchasing them.
Blanket Releases
We can issue a blanket release against a blanket purchase agreement to place the
actual order (as long as the release is within the blanket agreement effectively dates).
We create contract purchase agreements with your suppliers to agree on specific terms
and conditions without indicating the goods and services that you will be purchasing.
3. Click Find and select t the Requisition Line that you wish to convert to a PO
by putting a check mark in the block to the left of the requisition Number.
4. Click the button bottom right of the screen named Automatic button.
6. Purchase Order Document will display. Review for completeness, filling in any
missing data.
8. Click on Terms.
Purchase orders).
12 Payment Terms, Freight Terms, Carrier, FOB point, and Firm may on occasion
require changing, but, this is rare.
14. If necessary, adjust shipment information. Be Certain the ORG is for the
appropriate organization. BCS Nogales is N01.
16. Click on the button named Approve at the bottom of the screen to submit to the
approval workflow.
TABLES:
PO_RELEASES_ALL --- Purchase order blanket and planned release information
When a vendor sends only an invoice for drop shipments, you will need to perform
passive receipting. The receipt quantity will need to be retrieved from the invoice and a
logical receiving of the drop shipments needs to be performed. Passive receiving must be
performed manually.
Receiving Transactions
This creates inbound and outbound material transactions in your system for accounting
purposes. You must receive drop-ship items in a logical organization. If you use Oracle
Master Scheduling/MRP and Oracle Supply Chain Planning, to avoid miscounting supply
you may not want to include logical organizations in your planning. If you choose to
include logical organizations, ensure that doing so does not cause planning and
forecasting complications. If your supplier should send only an invoice, you need to enter
a passive receipt.
Check the line status, it should be closed. Then do navigation given below.
3. Check the Drop Ship the Quantity Received for Drop Ship will be there.
2. In Drop Ship the Quantity Received for Drop Ship will be there.
After your system’s inventory has a record of the transaction, run the Invoicing Activity
and Auto Invoice Programs to generate an invoice for your customer. You may want to
pass on any landing or special charges that your supplier imposed on the drop shipment.
Freight and special charges may be associated with shipments automatically.
PO_HEADERS_INTERFACE
PO_LINES_INTERFACE
PO_REQUISITIONS_INTERFACE_ALL
RCV_TRANSACTIONS_INTERFACE
PO_INTERFACE_ERRORS
RA_INTERFACE_ALL
Drop Ship Set Up:
1). NAVIGATE: Using your H03: Seattle Item Update responsibility
Items>Organization Items> Query Item to be converted to Drop Ship
• Change Default Source Type to “EXTERNAL” for items which are Always
sourced externally
• Shipping Subinventory: Select “DROPSHIP”
Go to Purchasing Tab
Save
• Type = Inventory
• Item = Drop ship item number
• Price = Purchasing price from vendor (leave quantity field blank)
• Price Break Window – Choose Quantity 1 Break Price (agreed price above)
• Enter Item Number-Org combo (501209-004-00 H03) (Rules are org specific)
• Choose effective dates
• Choose Type: Buy From: (Pick Vendor from LOV).
• Choose Supplier Site from LOV’s
• Choose Allocations (if you are using multiple Vendors)…mostly it will be 100%
• Rank = 1
Save
Assignment Set – Click on the Flashlight on the Toolbar>Always select N01 Schedule
Sharing
Go to “Assigned to” > Click on any of the rows in the lower section and add a new row
by clicking on the green + on the toolbar which reads “New”
• Assigned to = Item Organization
• Org = Org
• Item Category = Item #
• Type = Sourcing Rule
• Sourcing Rule/BoD = Choose new Sourcing rule created in previous step which is
your Item #
Save
• Type = Item
• Item = Item number for drop ship
• Type = Blanket
• Use LOV’s to assign your blanket number (it will be available if the blanket PO
has been approved)
Save
1. What are the Item Attributes that affect Drop Ship orders?
Thus in the case of drop shipments, the requisition always gets imported in
an approved status. The reason for this is because the sales order has
already been 'purchase released'.
5. Why does the ship date for drop ship orders show as Sysdate in
Receivables, as opposed to the actual date the product was shipped?
NOTE: Prior to the fix in Patch 1165312 the ship_date_actual for drop
ship lines was passed to Receivables as NULL, which caused the
order date to be used on the invoice.
For Drop Ship Order, Receiving quantity for a Cancelled Order was
allowed. Customers had to run 'Sales Order Purchase Order Discrepancy
Report' to know such descrepencies.
Cancel Orders Form allows users to cancel a Drop Ship Order only if the
corresponding Requisition is cancelled. There are two scenarios:
If part of a drop-ship line ships and you do not wish to fulfill the
remaining quantity, cancel the line. If the quantity shipped is less than
the quantity ordered, the sales order line will be split into two lines. The
first line will display the quantity shipped and the second line will display
the backordered quantity. Over-shipments must also be handled manually.
If the supplier ships more than the ordered quantity, you can bill your
customer for the additional quantity or request that they return the item.
Use the Sales Order and Purchase Order Discrepancy Report to view
differences between your drop-ship sales orders and their associated
purchase requisitions and orders.
Another big change in R11i is in the way locations are maintained. You no
longer need to define a separate Purchasing Location for each customer
Ship-To location, as was necessary in R11. Purchasing now uses a view a
the HZ and HR tables to derive the locations.
9. How can I view the Purchasing information for a drop ship order?
After the requisition import successfully pulls in the data from the
PO_REQUISITIONS_INTERFACE_ALL table, and creates the internal
requisition, this information is available from the Sales Orders form as
Follows:
Select the sales order line with the externally sourced item and hit
Actions -> Additional Line Information
Select the Drop Ship tab to view the data
Yes, this program can be run from the Orders, Returns -> Purchase Release
menu. If there are holds which prevent the order from progressing through
the Workflow normally after the order is booked, these holds must be
manually released. Then the externally sourced lines can be sent to
Purchasing by running the concurrent program.
Alternatively, you can use the Actions -> Progress Order button to push the
lines through to the PO_REQUISTIONS_INTERFACE_ALL table for
Requisition Import to pick them up.