Back To back Set ups step Step 1 Flexfield Define key and descriptive flexfields to capture additional information

about orders and transactions. This step is required for Key Flexfields, and optional if you plan on using the functionality surrounding Descriptive Flexfields. Several defaulting values are provided. Step 2 Multiple Organizations. Define multiple organizations in Oracle Inventory. This step is optional. Step 3 Inventory Organizations Define inventory organizations (warehouses), parameters, sub inventories, and picking rules in Oracle Inventory. You must define at least one item validation organization and at least one organization that acts as an inventory source for orders fulfilled internally. If you plan to drop ship some orders, you must also define at least one logical organization for receiving purposes. Your item validation organization can be the same as your inventory source or your logical receiving organization, but you cannot use one organization for all three purposes. See Step 5 for setting your item validation organization. This step is required. See Overview of Inventory Structure, Oracle Inventory Users Guide Defining Picking Rules, Oracle Inventory Users Guide Setup Steps 2-8 Oracle Order Management Implementation Manual. Step 4 Profile Options Define profile options to specify certain implementation parameters, processing options, and system options. This step is required. See Profile Options

Step 5 Parameters Set your Order Management Parameters to validate items, enable customer relationships, and operating unit defaults. This step is required. Step 6 Invoicing Define invoicing information, including payment terms, invoicing and accounting rules, Autoaccounting parameters, territories, and invoice sources. This step is required if you plan on transferring invoicing information to Oracle Receivables. Several defaulting values are provided. See Payment terms, Oracle Receivables Users Guide Invoice with Rules, Oracle Receivables Users Guide Transaction Types, Oracle Receivables Users Guide AutoAccounting, Oracle Receivables Users Guide Territories, Oracle Receivables Users Guide Invoice Batch Sources, Oracle Receivables Users Guide Invoice Processing, Order Management Users Guide Setup Steps Oracle Order Management Setup 2-9 Step 7 Salespersons Define information on your sales representatives. This step is optional. See Salespersons, Oracle Receivables Users Guide. Step 8 Tax Define tax features, such as codes, rates, exceptions, and exemptions. This step is required. See Overview of Tax, Oracle Receivables Users Guide. Step 9 QuickCodes Define QuickCodes that provide custom values for many lists of values throughout Order Management. This step is required if you plan on creating user defined Quickcodes for utilization within Order Management. Defaulting values are provided. See Define QuickCodes Step 10 Workflow Define order and line processing flows to meet different order and line type requirements. This step is required.

Step 11 Document Sequences (Order Numbering) Define Document Sequences for automatic or manual numbering of orders. This step is required. See Defining Document Sequences for Order Numbering Step 12 Order Import Sources Define sources for importing orders into Order Management. This step is required if you plan on importing orders or returns into Order Management. See Order Import Step 13 Units of Measure Define the units of measure in which you supply items. This step is required. See Defining Unit of Measure, Oracle Inventory Users Guide. Step 14 Item Information Define item information, including item attribute controls, categories, and statuses. Setup Steps Oracle Order Management Setup 2-11 This step is required. See Defining Item Attribute Controls, Oracle Inventory Users Guide Defining Categories, Oracle Inventory Users Guide Defining Item Status Codes, Oracle Inventory Users Guide Step 15 Items Define the items that you sell, as well as container items. Step 16Configurations Define the configurations that you sell. This step is required if you plan on generating orders or returns for configured items. Several defaulting values are provided. See Primary and Alternate Bills of Material, Oracle Bills of Material Users Guide. Step 17 Pricing Define price lists for each combination of item and unit of measure that you sell. Optionally, you can define pricing rules and parameters to add flexibility. For more information about pricing setup and implementation, refer to the Oracle Advanced Pricing Implementation Manual.

This step is required. Setup Steps 2-12 Oracle Order Management Implementation Manual See Basic Pricing Setup Step 18 Customer Classes Define customer profile classes. This step is required if you plan on using the functionality surrounding Customer Profiles. Several defaulting values are provided. See Defining Customer Profile Classes, Oracle Receivables Users Guide. Step 19 Customers Define information on your customers. This step is required. See Entering Customers, Oracle Receivables Users Guide. Step 20 Item Cross References Define item cross references for ordering by customer part number, UPC, or any generic item number. This step is required if you plan on using the functionality surrounding item cross referencing. Several defaulting values have been provided. See Using Item Cross Referencing in Order Management Defining Customer Item Cross References, Oracle Inventorys Users Guide Defining Cross Reference Types, Oracle Inventorys Users Guide Setup Steps Oracle Order Management Setup 2-13 Step 21 Sourcing Define your sourcing rules for scheduling supply chain ATP functions. This step is optional. See Setting up the Supply Chain, Oracle Advanced Supply Chain Planning Users Guide

Step 22 Order Management Transaction Types (Order and Line Types) Define Order Management transaction types to classify orders and returns. For each order type, you can assign a default price list, defaulting rules, order lines, return lines, line types, workflow assignments, payment terms, and freight terms.

This step is required. See Transaction Types Note: Previous versions of this users guide referred to Order Management Transaction Types as either transaction types or order or line transaction types. In an effort to distinguish between the various Oracle Transaction types available, Order Management Transaction types will now be referred to as either OM Order or Line Transaction Types. Note: Order Management provides NO seeded OM transaction types. For existing Oracle Order Entry customers, Order Management will update existing Order Types to OM transaction type during the upgrade process. Setup Steps 2-14 Oracle Order Management Implementation Manual Step 23 Cost of Goods Sold (COGS) Set up your Cost of Goods Sold Accounting Flexfield combination (COGS Account) in Oracle Inventory. This step is required if you plan on utilizing the functionality surrounding COGS. See Oracle Inventory Users Guide. Step 24 Processing Constraints Define processing constraints to prevent users from adding updating, deleting, splitting lines, and cancelling order or return information beyond certain points in your order cycles. Use the constraints Order Management provides, which prevent data integrity violations, or create your own. This step is optional. Several default values for processing constraints have been defined. See Processing Constraints

Step 25 Defaulting Rules Define defaulting rules to determine the source and prioritization for defaulting order information to reduce the amount of information you must enter manually in the Sales Orders window.

This step is optional. Several Defaulting rules and corresponding values for have been defined. See Order Management Defaulting Rules Step 26 Credit Checking Define your credit checking rules. This step is required if you plan on performing any type of order credit checking. See Credit Cards and iPayment Step 27 Holds Define automatic holds to apply to orders and returns. This step is required if you plan on performing automatic hold for orders or returns. See Hold Management Step 28 Attachments Define standard documents to attach automatically to orders and returns. This step is optional. Step 29 Freight Charges and Carriers Define freight charges and freight carriers to specify on orders. This step is required if you plan on charging customers for freight or additional order charges. See Freight and Special Charges Defining Freight Costs, Oracle Shipping Execution Users Guide Profile Options Defining Freight Carriers, Oracle Shipping Execution Users Guide Step 30 Shipping Define shipping parameters in Oracle Shipping Execution.

Back-to-Back Orders in Oracle Order Management WHAT IS SUPPLY-TO-ORDER? To satisfy this business need, we have modeled a process called supply-to-order which includesb oth the familiar assemble-to-order process in which a specific work order is created to build the item and pr ocu re- to-or de r (or back-toback orders) whereby a specific purchase order is created to fulfill the sales order demand. Supply-to-order items are either standard items or (with OM Family Pack H) models that have the assemble-to-order item attribute turned on. It is this attribute that launches the ATO workflows that deliver this feature. PTO models by definition cannot be supply-to-order, since turning on the assemble-toorder attribute would make them an ATO model. But you can have the shippable components of a PTO model (the options and included items) be fulfilled via back-to-back orders by checking the assemble-to-order item attribute of those components. BUSINESS NEEDS Oracle Order Management and the Oracle eBusiness suite provide you with the features you need to meet and exceed your requirements around back-to-back orders. With release 11i7, you can: Designate the items you want to procure each time they are customer-ordered as supply-to-order. Set up a buy from sourcing rule for those items or, if you dont set up sourcing rules, indicate that the item is a buy item rather than a make item . Enter sales order lines for these items, and have the supply automatically created via a requisition. No user decisionmaking is required to make this happen. Have the requisition converted into a Purchase Order or a release of a blanket Purchase Order, and have the PO or release sent to the supplier. Back-to-Back Orders in Oracle Order Management

Page 2 View the requisition number or PO number and its status from the Sales Order. Accept changes to the Sales Order and have the ability to notify the buyer to take appropriate action on the associated PO. 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. MAJOR FEATURES To satisfy the above business needs, Oracle Order Management and Configure-to-Order have combined to deliver the back-toback business flow with the following set of features: Auto Create Requisitions An automatic process called Auto Create Requisition is available that creates the requisition in Purchasing for the Sales Order line. This process takes information from the sales order line and puts it in the requisition import interface tables so that a purchase requisition can be created. This process can be run as a scheduled or on-request concurrent process, or can be initiated online from the Sales Order line using Progress Order action. Flow of Reservation Supply from Requisition to PO to Inventory The supply for the reservation is first linked to the requisition, then moves to the PO, and finally to Inventory as the PO is received. Visibility to the supply for the reservation is provided in the View Reservations form. Use of Workflow to Automate Process Steps A new branch has been added to the existing Create Supply workflow subprocess in the seeded generic sales order line workflow. Previously, the Check Supply activity had results of Build or Flow. A new result of Buy initiates the autocreate purchase requisition processing. This new workflow functionality was released in 11i7.

SET UP The following must be done to use Back-to-Back orders in Oracle Order Management. Back-to-Back Orders in Oracle Order Management Page 3 Define Items Use the familiar Inventory Master Items form to define the items that you wish to supply to order. The following item attributes must be specified: Item must be marked as Customer Orderable on the Order Management tab and Purchasable on the Purchasing tab. Item must be marked as Assemble-to-Order on the Order Management tab. (This attribute is actually called replenish to order in the database. There is an enhancement pending to change the prompt for this field on the Master Items form, to reduce confusion now that this flag also controls procure-to-order.) Item must either have the make/buy flag on the General Planning tab set to buy, or else have a sourcing rule saying that it is to be sourced from a vendor. Define Sourcing Rules If you define a sourcing rule for your supply to order items, then the sourcing rule must be of type buy from. Also, you may only define one single sourcing rule for your item, or this process will not work. You must then add this sourcing rule to the assignment set which is specified as the MRP default assignment set in the MRP: Default Sourcing Assignment Set profile option. You may not have a combination of buy from and make sourcing rules or more than one sourcing rule in the assignment set for the same item. If you do that, Auto Create Requisition will error out, and will put details about what the problem was in the log file.

PROCESSING ORDERS USING BACK-TO-BACK ORDERS Sales Order Process Entering orders using supply-to-order items is easy and straightforward. Here are the steps: 1. Enter the item on the Sales Order line as usual. 2. When the line is scheduled, the create supply subprocess of the workflow will put the lines through the buy ATO item flow which contains the autocreate Back-to-Back Orders in Oracle Order Management Page 4 purchase requisition activity. AutoCreate Requisition can be run as a concurrent program or can be initiated for an individual order by using the Progress Order action on the Sales Order if it is in status Create Supply Line Eligible. As stated above, AutoCreate Requisition takes information from the Sales Order line and loads the Requisition Import interface tables. 3. Next, Requisition Import must be run to create the purchase requisition tied to the sales order line. This can be done by manually submitting the Requisition Import concurrent program, or you can schedule it to run automatically. Requisitions created by this process all have an interface source type of CTO, so you can identify and segregate these requisitions if you desire. The requisition column Note to Buyer is populated by the AutoCreate Requisition process with a message Supply for sales order: <order number>, so you can see what order number this line is for. You can add additional custom text to the note by editing the message dictionary for 'CTO Note to Buyer'. There are also message dictionary entries for 'CTO Note to Receiver which can be populated with custom text. Purchasing Process Once the purchase requisition is created and identified as CTO, the regular purchasing process takes place.

1. A Purchase Order can be created and approved and sent to the necessary supplier, or else a release of a previously created Blanket PO can be used. 2. In either case, once the PO or release is received, the items are recorded in inventory and a reservation is automatically made to the sales order line. 3. Throughout this process, you can know what sales order generated this PO or release by viewing the Note to Buyer, as indicated above. The Sales Order can now be pick released, shipped and invoiced just like other stocked items. Sales Order Line Status There are several new line statuses that have been introduced Back-to-Back Orders in Oracle Order Management Page 5