Crediting Over-Shipped Quantities for

Referenced RMAs in R12.1

An Oracle White Paper

March 2010
Summary

Existing functionality in Order Management, allows users to book a (sales order

referenced) RMA for a quantity based on the originating ordered Quantity. However,
businesses have requirements to book RMA’s based on shipped quantities,
especially in the case of over-shipments, in addition to the current provision based
on ordered quantities. Now in Release 12.1.1, users are provided with an additional
option of raising RMAs based on the shipped quantity, if the Invoicing basis is set to
ship quantity. For scenarios where the system parameter is based on Ordered
Quantity, the existing behavior for RMA will continue. This white paper provides
worked examples and background discussions relating to this new Order
Management Release 12.1.1 feature to aid in its understanding and potential
business implementation.

Background
The facility to invoice sales orders based on actual shipped quantities, as apposed to
ordered quantities has been an available feature in the Order Management
application for some time. However, since the early inception of this feature, a
functional “gap” was recognised whereby attempts to create and book an associated
referenced RMA with one of these “over-shipped” sales orders was restricted.

Setup

I. Set the system parameter “Overshipment Invoice Basis”

Be advised this system parameter has been migrated from a standard profile option
setting in the new 12.1 release. This is documented in related Note 393646.1.
Additionally, it should be noted this configuration can be “overridden” at the
Customer-level from the “Order Management” tab.

The two related value settings are detailed below.

Invoice Shipped Quantity

Invoice the actual “Shipped Quantity” in the circumstance of a material “over-

shipment”.

Invoice Ordered Quantity

Irrespective of any over-shipment of sales orders generate associated invoices

based on their actual entered “Ordered Quantity”.
Worked Examples

To re-inforce this new feature of referenced RMA’s we shall progress with worked
examples of both the legacy 11.5.10 functionality, highlighting the restriction of
referenced RMA “ordered quanties”, together with a complete order-to-cash example
of the new R12.1 feature allowing entry of referenced RMA’s based on originating
shipped quantities.

Release 11.5.10

A. Set the “OM: Overshipment Invoice Basis” profile option to “Invoice Shipped
Quantity”

Navigate “Profile -> System” from the

System Administrator responsibility

B. Enter a new sales order with one line, ordered quantity = 3.

Book and pick release this new sales order. On Ship Confirmation “over-ship” the
Delivery line setting the Shipped Quantity = 4.
 NOTE: Shipped Quantity greater
than Ordered Quantity. Ie. Sales
order has been “overshipped”

C. Progress this order line through Invoicing.

The Invoice Interface workflow activity will place appropriate records in the AR
invoice interface tables awaiting processing by the AR AutoInvoice concurrent
program. Run AutoInvoice to create the associated customer invoice.

Order line has progressed

through invoicing with an over-
shipped invoice quantity
D. Run AutoInvoice creating the AR invoice.

The AR invoice quantity is determined by the associated Overshipment Invoice

Basis profile option. In this instance the invoicing basis is “Invoice on Shipped
Quantity”, hence a quantity of “4” rather than the ordered quantity of “3”.

Invoice line quantity = 4. ie.

Invoice quantity has been taken
from the sales order “shipped
quantity” as per profile option
E. Now progress to creating an associated reference return material authorisation
(RMA) for this sales order.

Add a single line to this (referenced) RMA. Note, this line is referenced back to the
originating sales order (number 62812). Enter an (ordered) quantity based on the
sales orders’ shipped/invoice quantity (4), rather than the ordered quantity (3).

RMA is referenced back to

originating Order Number 62812
F. Attempt to book this new (referenced) RMA.

Booking attempt fails since (legacy) pre-R12.1 functionality disallows processing of

referenced RMA’s for any other quantity other than the originating “Ordered
Quantity”.

(NEW) Release 12.1

Let us now progress through ther exact same testcase scenario this time in the new
R12.1 environment for comparative purposes and a reflection of the new RMA over-
shipment feature.

A. Set the (new) “OM: Overshipment Invoice Basis” system parameter to “Invoice
Shipped Quantity”. See Note 393646.1 for details on all related migrated 11.5.10
profile options.
B. Enter a new sales order with one line, ordered quantity = 3.

Book and pick release this new sales order. On Ship Confirmation “over-ship” the
Delivery line setting the Shipped Quantity = 4.
 NOTE: Shipped Quantity greater
than Ordered Quantity. Ie. Sales
order has been “overshipped”

C. Progress this order line through Invoicing.

The Invoice Interface workflow activity will place appropriate records in the AR
invoice interface tables awaiting processing by the AR AutoInvoice concurrent
program. Run AutoInvoice to create the associated customer invoice.

Order line has progressed

through invoicing with an over-
shipped invoice quantity
D. Run AutoInvoice creating the AR invoice.

The AR invoice quantity is determined by the associated Overshipment Invoice

Basis system parameter. In this instance the invoicing basis is “Invoice on Shipped
Quantity”, hence a quantity of “4” rather than the ordered quantity of “3”.

Invoice line quantity = 4. ie. Invoice

quantity has been taken from the
sales order “shipped quantity” as per
(new) system parameter
E. Now progress to creating an associated referenced return material authorisation
(RMA) for this sales order.

Add a single line to this (referenced) RMA. Note, this line is referenced back to the
originating sales order (number 66649). Enter an (ordered) quantity based on the
originating sales orders’ shipped/invoice quantity (4), rather than the ordered
quantity (3).

RMA is referenced back to

originating Order Number 66649
F. Now, attempt to book this new (referenced) RMA.

Booking is successful!!

The new R12.1 functionality allows booking of referenced RMA’s based on the
originating sales orders shipped/invoiced quantity, rather than restricting RMA
quantities to the ordered quantity.

G. Now, let us continue business flows to verifiy the creation of the associated Credit
Note. Run the workflow background process to have this RMA line progress through
to invoice interfacing. Run AutoInvoice to create the associated Credit Note.

New Credit Memo 10038012 created

With a single associated line Quantity = 4.
Crediting Over-Shipped Quantities for referenced RMA’s in R12.1
Author: Robert L. Barker
Senior Technical Support Engineer
Global Product Support

Special thanks to Aditya Mallik, Manager of OM Development team for his great
help in reviewing and providing valuable suggestions for improving this whitepaper.

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