Overview of Order Management Suite-1

Oracle Applications - Order Management Suite
1
GECIS IT Services
Proprietary and Confidential
Oracle Applications - Order Management Suite
Agenda
Overview of Order Management Suite
•Order Management
•Shipping Execution
•Basic Pricing
•Integration with other Oracle Application Modules
Necessary Setups
Business Flows covering different scenarios and concepts
2
GECIS IT Services
Overview of Order Management Suite
Using the Oracle Order Management (OM) Suite,
you can enter sales orders,
calculate the price of items on order lines, fulfill the orders,
for example by shipping
the items, and send information to an accounts receivable
system so that invoices are created.
The core OM products are
Oracle Order Management
Oracle Shipping Execution (SE)
Oracle Pricing
3
GECIS IT Services
Order Entry Methods
Enter order Copy an Import from
or return online order or return EDI other systems
Order or return
Enter
order or return Order Import
4
GECIS IT Services
My
Customer
What
is My Product
Sales
Order
My Product
Price
Terms and
5
GECIS IT Services
Conditions
Order Management Integration
Oracle General Returns / Credits
Booked Orders
Oracle Receivables
Ledger
Customer Info,
Set of Books Credit Info
ExchangeRates Sales Reps
Payment Terms
Order Management External
Oracle Internal Requisitions Sales Orders
Suite Systems
Purchasing Unit of Measure
Item Information Order Info
ATP/On-hand
Shipments
Reservations Demands Model
Oracle Inventory Oracle Master
Item Info & UOM Structure
Scheduling
Demand Reservations
Oracle Work in Oracle Bills of

Model Structure
Process Material
6
GECIS IT Services
Simple Order Processing - Business Flow
GL
Oracle Oracle Invoice Customer

Inventory Receivables
Standard
Order
Pick/ Process
Ship
Book
Order
7
GECIS IT Services
Inventory – About Organization, Subinventory
8
GECIS IT Services
Order Management: System Parameters
System Parameters for order management are set at the
Operating Unit level.
The setup screen is available under Order Management Super
User responsibility.
Navigate: Setup > Parameters.
On opening, the default Operating Unit will display (MO:

Operating Unit for the Responsibility). You can set the value
for:
Item Validation Organization (Inventory Organizations) to define which
Inventory Organization you can use to transact items in a given
Operating Unit.
The Customer Relationships flag for the Operating Unit defines whether
a user can specify SHIP_TO and BILL_TO locations for related
customers while entering orders.
9
GECIS IT Services
Order Management: Security
Order Management operations are secured at Operating Unit Level.
Respective operating unit is attached with the respective
responsibility.
Modules which are controlled at operating level are: OM, PO, AR

and AP.
Modules which are controlled at inventory organization level are:

INV, BOM, WIP, MRP, WMS
10
GECIS IT Services
Item Master Org Vs. Item Validation Org
Organization is synonymous with warehouse in Order Management.
An Item Master Organization is used for item number maintenance

and validation. This master organization serves as a data repository
storing items and item attributes, master level categories and category
sets, master level cross references, and numerous data defaults. On-
hand balances, inventory movements, and other on-going inventory
activities are not performed in an item master organization.
In Order Management, the Item Validation Organization parameter

indicates the Oracle Manufacturing organization against which items
are validated. You must also define all transact able items in this
organization.
11
GECIS IT Services
Inventory – Item Creation
 An item is a part or service you purchase, sell, plan,
manufacture, stock, distribute, or a prototype.
 You can define and control items that you stock in
inventory.
 Once defined, you assign items to organizations.
 You may choose to have centralized or decentralized
control of your items through a variety of item attributes.
12
GECIS IT Services
Item Attributes for Order Management
Under Inventory Group
Attribute Name Purpose
Inventory Item Indicate whether to stock and transact this item in Oracle
Inventory. You must turn this option on if you want to enable
the following item attributes: Stockable, BOM Allowed,
Transactable, and Build in WIP.
This is an item defining attribute. If you turn this option on, the
item is automatically assigned to the default category set for
the Inventory functional area.
Stockable Indicate whether to stock this item in Inventory. You can set
this attribute only when you turn on the Inventory
Item option. Turning this option on enables you to set the
Transactable item attribute.
Transactable Indicate whether to allow Inventory transactions. You can set
this attribute only when you turn on the Stockable option.
Reservable Indicate whether you can create material reservations. You can
reserve an item only when you have sufficient inventory.
13
GECIS IT Services
Under Order Management Group
Customer Ordered Indicate whether to allow an item to be ordered by external
customers. You can add any customer orderable items to price lists
in Oracle Order Management.
Customer Orders Indicate whether an item is currently customer orderable. If you
Enabled turn this attribute on you can specify the item in the Enter Orders
window in Oracle Order Management.
Internal Ordered Indicate whether to allow an item to be ordered on an internal
requisition.
Internal Orders Indicate whether you can currently order an item internally.
Enabled
Shippable Indicate whether to ship an item to a customer.
OE Transactable Indicate whether demand can be placed for an item by Oracle Order
Management, and whether shipment transactions are interfaced to
Oracle Inventory.
14
GECIS IT Services
Pick Components Indicate whether an item has a bill of material with options, classes,
or included items picked from finished goods inventory. Pick–to–
order items must have this attribute turned on. Assemble–to–order
items and items without a bill of material must have this attribute
turned off.
Assemble to Order Turn this attribute on if an item is generally built for sales order
demand; a final assembly work order is created based on sales order
Details.
Check ATP Select Check Material Only, Check Material and Resources, Check
Resources Only, or None to indicate whether to check available to
promise and/or capable to promise information when placing
demand.
ATP Components Indicate whether to include, in available to promise checking,
additional components in the bill of material for ATO and PTO
items.
15
GECIS IT Services
Returnable Indicate whether to allow customers to return an item. If an item is
returnable, you can enter it on the Returns window in Oracle Order
Management. Order Management uses this attribute along with
Stockable and Transactable to determine which authorized
returned items
RMA Inspection Indicate whether inspection is required for items returned by the
Required customer. The item then must be separately transferred to inventory.
Credits are never automatically generated by Oracle Order
Management for customer return items awaiting inspection.
16
GECIS IT Services
Physical Attributes of an Item
Under Physical Attribute Group (Container Items and Vehicles)
Weight Unit of Measure

Unit Weight
Volume Unit of Measure
Unit Volume
Container
Vehicle (Vehicles used for shipping sales orders)
Container Type (Lookup Values)
Internal Volume (Internal volume of the container or vehicle)
17
GECIS IT Services
Item Cross References in Sales Order
OM allows your customers to order in their internal, customer
specific, generic item numbers, or your internal item numbers. The
following commonly used generic identifiers are supported:
UPC (Universal Product Code)

EAN (European Article Number)
JAN (Japanese Article Number)
CLEI (Common Language Equipment Identifier)
ISBN
Customer/generic items can be used in both on-line order entry and

Order Import. When entering on-line, searching using the cross
references is possible. Both customer and generic item numbers can
be printed on external documents, including acknowledgments and
invoices.
18
GECIS IT Services
Stock Strategies
Stock strategies denotes a process that identifies and maintains the
optimum level at which you should maintain your inventory, so that
your inventory investment is minimum.
Delivery lead time is very important determinant of the supply chain

stocking strategy.
Types of stock strategies:

•Make to Stock
•Pick to Order
•Assemble to Order
•Make to Order
•Engineer to Order
19
GECIS IT Services
Stock Strategies and Lead Time
20
GECIS IT Services
Define Item - Navigation
Responsibility: Inventory
Navigation:
Items -> Master Items
Action:
Enter Item Name and Description
Menu-> Tools -> Copy From -> {Select the Template}
Assign this item to Item Validation Organization
21
GECIS IT Services
Let us define Item
22
GECIS IT Services
Basic Pricing capability of Order Management
The Basic Pricing component of Oracle Order Management provides

the capability to price orders according to price lists, pricing
formulas, or agreements. You can also apply discounts, control the
lowest level price that may be given in order to comply with General
Services Administration Agency (GSA) regulations, and apply
freight and logistics related charges to orders.
Order Management enables you to define and use multiple price
lists to serve various business needs. At least one price list must be
established to price all orders. A base or corporate price list can be
created with all inventory items to establish a base price for each.
23
GECIS IT Services
Basic Pricing - Capabilities
Multiple Price lists
Order Management enables you to define and use multiple price lists to serve
various business needs. At least one price list must be established to price all
orders. A base or corporate price list can be created with all inventory items to
establish a base price for each. This price list can be used in the absence of a
specific price list.
Secondary Price Lists
The pricing engine uses secondary price lists when it cannot determine the
price for an item using the price list assigned to an order. Primary and
secondary price lists must have the same currency. You can only assign one
secondary price list to any specific primary price list, however, you can assign
the same secondary price list to multiple primary price lists.
Multiple Currencies
International sales transactions can be recorded in different currencies by
defining a price list for each currency.
24
GECIS IT Services
Pricing Concept
The pricing engine determines selling prices for products. It
answers the following questions:
•Who qualifies for prices and benefits?
•What is the product or service to be priced?
•How should I adjust the order price or order line price?
Who qualifies? Qualifiers
What is the product or service Product Hierarchy

to be priced? Pricing Attributes
How should I adjust the price? Modifiers
25
GECIS IT Services
Pricing Concept
All
INPUT OUTPUT
Qualifiers
Final Price
Eligibility
Attributes
Modifiers
What
Agreements
Adjustments
PRICING ENGINE
26
GECIS IT Services
Modifiers Type in Basic Pricing
27
GECIS IT Services
Let us define our Price List
Responsibility:
Order Management Super User, Vision Operations, USA
Navigation:
Pricing -> Price Lists -> Price List Setup
Action:
Define Price List Header and Lines
28
GECIS IT Services
Let us define our Price List
29
GECIS IT Services
Party Vs. Customer
Party Customer
A party is an entity that can enter A customer is an organization or
into business and can be of the type person with whom you have a selling
Organization or Person. A party relationship. This selling relationship
exists separately from any business can result from the purchase of
relationship that it enters in to with products and services or from the
another party. negotiation of terms and conditions
that provide the basis for future
purchases.
Party/Customer can be an Organization or Person.
30
GECIS IT Services
Customer Profile Class
Grouping customers based on attributes like credit worthiness,
payment promptness, business volume etc.
11 12 1
10 2
9 3
8 4
7 6 5
Diners Club
Credit Worthiness Business Volume

Paymet Promptness Credit Limit
Finance Charges Payment Terms
Dunning letters Discounts
Discounts Statement Cycle
Min. Customer Balance GRace Days
Min. Invoice Balance
31
GECIS IT Services
Customer Information
Customer
$ $
$
Profile Addresses
Tax Code Bank Accounts Payment Method Contacts
Class
Contacts Business Purpose
$ $
$
Profile Tax Code Bank Accounts Payment Method
Class
32
GECIS IT Services
Let us define Customer and Profile Class
Responsibility:
Order Management Super User, Vision Operations (USA)
To Define Customer Profile Class:

Navigation:
Customers -> Profile Class
To Define Customer:
Customers -> Standard
33
GECIS IT Services
Let us define Customer and Profile Class
34
GECIS IT Services
Simple Order Processing - Business Flow
Standard shippable Standard shippable
Invoice only (Distributor) (Manufacturer)
1 1 1
Customer requests order
2 2 2
Enter order
3 3 3
Book order
4 4
Schedule
5
Release order to Manufacturing
5 6
Ship product and update inventory
4 6 7
Invoice the customer
Complete Complete Complete
35
GECIS IT Services
Sales Order - Booking
Booking a sales order indicates that the order entry

process is complete and that the customer has committed to
the order.
Booking is required before the order or return can advance

to the next activity.
36
GECIS IT Services
Sales Order – Scheduling
Scheduling is a communications tool that helps balance
customer demands with your ability to fulfill that demand.
Aspects of Order Schedule that OM Provides

Schedule Aspects Tools Description
ATP Inquiry Enables you to make delivery commitments to customers
while taking an order, or to verify from where a line can be
fulfilled
Schedule Provides a schedule date and warehouse that will fulfill the
customers request. If an item has Check ATP enabled, then
the supply will be consumed from the pool of available
supply for that item. If an item does not have Check ATP
enabled, then the supply will not be consumed.
Reservation Allocates inventory to a specific order line from a
warehouse, subinventory, lot, or revision
37
GECIS IT Services
Sales Order – Scheduling
Manufacturing/
Order Management Distribution
“We have an order “We’re planning a
ATP for 500 items on run on 1/8 and
Inquiry 1/7. Can we fill it?” can give you 500
then, but not on
1/7.”
“I have the numbers “Great, I may

on the orders we need to adjust
Schedule
took today.” the forecast and
our supply plan.”
“We need to ship “Sure, we’ve got

100 items to ACME 125 on hand. I’ll
Reservations tomorrow. Can you mark 100 of them
set aside inventory for ACME.”
for it?”
38
GECIS IT Services
Ship Set
Ship Sets enable you to group order lines within a set for
shipment. You can use ship sets to do the following:
Assign a single ship set to all the lines in an order to

support your customers that do not allow partial shipments.
For orders that contain multiple lines with the same item,
to ensure that the an order line is not released until the full
quantity is available, assign the order line to a ship set.
39
GECIS IT Services
Ship Set
Ship sets ensure that all order lines within a Ship set do not
progress past the Ship workflow sub process within respective
line flows until all lines within the set have available quantity to
ship. Ship sets are limited to order lines that contain the same
following identifying order/line attribute values:
Ship From and Ship To Organization (a null value within

either of these fields is not valid)
Scheduled Ship Date
40
GECIS IT Services
Arrival Set
Arrival sets ensure all order lines within the set definition are
scheduled to arrive at a customer site on the same date
regardless of shipping method and ship to location.
Arrival sets can:

Span multiple organizations, but are limited to the order for
which they were created.
Ship from different warehouses and ship on different days
41
GECIS IT Services
Arrival Set
All order lines within a Arrival Set must have the following
identical identifying order/line attribute values:
Order Line Scheduled Arrival Date

Order Line Ship To Organization
42
GECIS IT Services
Shipping Execution – Pick Release
Pick Release: An order cycle action to notify warehouse
personnel that orders are ready for picking.
Picking: The process of withdrawing items from inventory to be

shipped to a customer.
Pick release rule: A user-defined set of criteria to define what

order lines should be selected during pick release.
Pick release sequence rule: The rule for pick release that
decides the order in which eligible order line details request
item reservations from Oracle Inventory.
43
GECIS IT Services
Shipping Execution - Delivery
Pick slip: Internal shipping document pickers use to locate items
to ship for an order. If you use standard pick slips, each order
will have its own pick slip within each picking batch. If you use
the consolidated pick slip, the pick slip contains all orders
released in that picking batch.
Pick slip grouping rule: Criterion for grouping together various

types of pick slips. The rule dictates how the Pick Slip Report
program groups released lines into different pick slips.
Delivery: A set of order lines to be shipped to a customer’s ship-

to location on a given date in a given vehicle. Multiple deliveries
can be grouped into a single departure. A single delivery may
include items from different sales orders and may include
backorders as well as regular orders.
44
GECIS IT Services
Shipping Execution – Pick Confirm &Ship
Confirm
Pick Confirm: The Move Order Line Details (transaction lines) created
by the detailing process must be transacted to confirm the material
drop-off in staging:
•Transacts Move Order Details to staging subinventory
•Transfers reservation to staging location
Ship Confirm: To enter shipped quantity and inventory controls

for specific shippable lines (delivery lines).
45
GECIS IT Services
Pick Confirm (Transact Move Orders)
46
GECIS IT Services
Packing
Container Load Relationship: Item which requires packing should

have preferred container load relationship in the organization.
Navigation:
Shipping->Setup->Container Load Details
Auto Packing: The Auto Packing feature selected at the time of pick
release, creates containers automatically.
LPN: LPN is an acronym for License Plate Number. A packing

container has a license plate number for unit identification and
reporting capability, so containers are also called LPNs in
Oracle Shipping Execution.
47
GECIS IT Services
Packing – Pick Release by Containers
Pick Release by Containers:
Delivery lines that have not been pick-released can be assigned

to LPNs and packed. You can run a pick-release batch by
container name which enables you to pack multiple LPNs with
multiple lines in one transaction.
48
GECIS IT Services
Packing Work Bench
You can use the Packing Workbench to split the delivery lines
between containers or to pack sequentially one container at a
time to its full capacity.
Equal Packing Delivery Lines into Containers:

You can split the delivery lines equally between the selected
LPNs so that each of the resulting split lines (from every
delivery line) is packed into each available container.
Sequential Packing Delivery Lines into Containers:
You can fully pack one LPN and then proceed to pack the next
LPN. When packing multiple lines into multiple LPNs, the
packing is performed one container at a time. The first delivery
line is packed into the first container until the container is full or
the line is completely packed.
49
GECIS IT Services
Shipping Execution – Trips, Stops and Leg
Trip: is carrier-specific (such as UPS, DHL, FedEx) and contains
deliveries and departs from a particular location. It must
contain at least two stops.
Stop: Can consist of pick-ups, drop-offs, or both
Leg: Consists of at least two stops and one leg or trip
Trip 1
San Francisco Stop 2
Stop 1
NY
Trip 1
Stop 4
Trip 1
Dallas
Stop 3
Miami
50
GECIS IT Services
Launch Pick Release
Pick Release can be run using the following methods:
On-line:
You can pick release one order immediately, thereby eliminating time
spent waiting for the order to process through the Concurrent Manager
queue. This is done in the Release Sales Orders for Picking window.
Concurrent:
You can run pick release in the background, enabling you to run other
processes simultaneously. This is done in the Release Sales Orders for
Picking window.
Standard Report Submission (SRS):
You can run a specific release at the same time every day. SRS runs
pick release in the background multiple times.
Shipping Transactions window:
You can run pick release in the Shipping Transactions window by
selecting Launch Pick Release from the Actions menu.
51
GECIS IT Services
Shipping Parameters
Shipping parameters are organization specific.
The parameters are arranged into the following tabbed regions in the
Shipping Parameters window:
General: You can define shipping units of measurement such as

weight, volume, and the unit of measure used for percent fill basis
calculations.
If the Percent Fill Basis Shipping Parameter is set to Weight or

Volume, Shipping Execution will use the weights or volumes you
define for containers and items to calculate how many items will fit
into containers.
52
GECIS IT Services
Shipping Parameters
Pick Release: You can define release rules, pick slip grouping rules,
release sequence rules, and printing parameters.
Shipping Transaction: You can define automatic or manual weight

and volume calculations, container volume calculations, container
inventory control, and goods dispatched (COGS) account.
Delivery Grouping: You can define how to group delivery lines for
a delivery.
53
GECIS IT Services
Shipping – Grants and Roles
Roles:
Shipping Execution introduces data access control features called
roles that can be assigned to users.
Roles can be assigned to permit or restrict a user’s access to

important shipping entities such as trips, stops, deliveries
(including delivery legs, Bill of Lading, and Packing Slip), lines,
and LPNs (containers).
Grants:
When a role is assigned to a user, a grant that contains the identical
privileges of the role is assigned. This provides flexibility for the
system administrator to apply user-level controls such as adding an
expiration date to a grant.
54
GECIS IT Services
Standard Sales Order Cycle
Invoice
GL
GL Inventory
Oracle Interface Oracle
Customer
Inventory Receivables
Move Standard
Orders, Order Invoice
Pick/Ship Process Interface
Pick
Release, Close
Pick Confirm Order
APIs
Book
Sales Order
Inventory Schedule Enter Order
55
GECIS IT Services
Order Header Information
The Order Information section of the Sales Orders window allows
you to enter header information such as:
•Customer, customer bill-to and ship-to addresses
•Order type
•Price list and payment terms
•Salesperson and sales credit
•Currency and tax information
•Payment and freight terms
•Credit card number
•General shipping information
56
GECIS IT Services
Order Lines Information
The Line Items section of the Sales Orders form enables you
to enter:
Main information such as:
Ordered item, quantity (whole or decimal), scheduled ship
date, and so on. It enables you to find pricing for items.
Pricing
Shipping
Addresses
Return information
Service information
Miscellaneous information such as the project number
57
GECIS IT Services
Sales Order Processing and Workflow
Order Management is seeded with Workflows which
control order processing
Workflows replace order cycles and approvals
You can view order flow status using the graphical
Workflow Monitor
The Workflows control the order header and the line
processing. Order types and line types must be set up as
follows:
Header flows must be attached to the order type
Line flows must be attached to an order type, line type, and item
type combination
58
GECIS IT Services
Order Header/Line Workflow processes
The Workflow engine will move the order/line ahead as
long as the activities are synchronous activities.
The Workflow engine will move the order/line ahead as
long as the activities are synchronous activities. The order or
line flow will stop at any manual activity which will require
a manual task to move the workflow along.
The Workflow background engine processes deferred
activities, notifications, wait activities and time out activities.
You setup the Workflow background engine when setting up
Workflow in your environment.
Conc. Program Name: Workflow Background Process
59
GECIS IT Services
Sample Workflow for Order Header and Line
Header Workflow
Enter Book - Order, Close - Order End

Manual
Line Workflow
Unreserve
Enter - Line Schedule - Line Create Supply - Line Ship - Line, Manual Fulfill - Deferred Fulfill Invoice - Line Close - Line End
60
GECIS IT Services
Transaction Types
•Oracle Order Management utilizes transaction types as
order types.
•Define transaction types to classify order and returns.
•Order Types:
– Determine Order-Level workflow selection
– Not Necessarily Fixed to Orders or Returns
•Line Types
– Determine Line-Level workflow selections
– Key to Mixing Orders and Returns on Single Transaction
61
GECIS IT Services
Defaulting Rules
Why Defaulting Rules?
to reduce the amount of information that must be entered manually in
the Sales Order window.
How it defaults values?

Prefill fields (attributes) on tabs in the Sales Order form (entities) with
a default value from certain sources (source types)
62
GECIS IT Services
Various Types of Sales Order
•External Customer Sales Order

•Standard Item
•Configure to Order (Using
Stock Strategies ATO and PTO)
•Internal Customer Sales Order
•Drop Shipments
•Returns
63
GECIS IT Services
External Customer Order
Inventory
Interface
Customer
Move
Orders,
Pick/Ship
Pick
Release,
Pick Confirm
Book
Sales Order
Inventory Schedule Enter Order
64
GECIS IT Services
Internal Customer Order
Internal Requisition:
A requisition in the Purchasing system that will directly

result in the generation of a sales order in the Order
Management system through the Order Import process in
Order Management.
Internal Requisition/Internal Sales Order provide the

mechanism or requesting and transferring material from
one inventory organization to other inventory organization
or expense location.
65
GECIS IT Services
Customer:
Because internal orders are processed through the sales order

form, corporate locations that receive product via internal
orders must be set up as customers.
Create customer records to correspond to internal locations,

and link them using location associations on the Customer bill-
to site usage.
66
GECIS IT Services
Requestor Demand
Manually Import or reschedule
create requisitions
Approve requisition
Create internal
sales order
Order entry
Schedule order
Pick Release
Inventory
Ship confirm
Expense Receive
Direct Intransit Inventory Expense
67
GECIS IT Services
Inter Org Transfer and Internal Customer Order
Shipping Network
68
GECIS IT Services
Internal Customer Order - Setup
Item Attributes:
Purchased : Enabled
Purchasable : Enabled
Transactable : Enabled
Stockable : Enabled
Reservable : Optional
Inventory Item : Enabled
Customer Ordered : Enabled
Customer Order Enabled : Enabled
Internal Ordered : Enabled
OE Transactable : Enabled
Shippable : Enabled
69
GECIS IT Services
Step to Create Internal Sales Order:
In Purchasing:
•Create Internal Requisition and Approve.
•Run Create Internal Orders – Concurrent Program
In Order Management
•Run Order Import with Order Source ‘Internal’
•Fulfill the Sales Order
70
GECIS IT Services
Drop Shipment
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.
71
GECIS IT Services
Drop Shipment
Enter order
Drop Ship: Yes or No?

Drop Ship Item Internally Sourced Item
Send to Purchasing Schedule
Supplier ship confirmation Ship and update inventory
Create invoice
Close sales order
72
GECIS IT Services
Drop Shipment - Setup
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
Order Source Type : External
73
GECIS IT Services
Drop Shipment – Setup Check
•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.
74
GECIS IT Services
Drop Shipment – Setup Check
•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).
75
GECIS IT Services
Drop Shipment - 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
76
GECIS IT Services
Sales Order Returns
• Order Management provides sophisticated tracking of your
return material authorizations (RMAs).
• Returns from a customer occur for a variety of reasons

including damage, shipment error, or sampling.
• Return material processing functionality enables you to

manage customer expectations while controlling inventory
receipts and customer credit processing.
77
GECIS IT Services
Simple Sales Order Returns Flow
• Create an RMA having a single line whose originating transaction
is unknown
• Book the RMA
• Receive the RMA using the Receipts form of Oracle Purchasing
• Check the on-hand quantity of the item in Inventory to verify that
correct quantity was received
• Fulfill RMA line
• Generate a credit memo
• View the Credit Memo in Order Management
• Check the Shipped and Fulfilled quantity on the RMA line
78
GECIS IT Services
Sales Order Returns – Line Types
RMA line types have a line type category of Return. The
following are examples of the basic line return types:
Return for credit with receipt of goods and approval
Return for credit with receipt of goods
Return for credit only
Return for credit only with approval
79
GECIS IT Services
Sales Order Returns - Setup
Item Attributes:
Order Management Tab:
• Returnable
• Shippable
•Transactable = Yes,
•RMA Inspection Required = Yes or No
Receiving Tab:
•Receipt Routing = Inspection (if required)
Invoicing Tab:
•Invoicable Item = Yes or No, Invoice Enabled = Yes or No
80
GECIS IT Services
Sales Order Returns – Header Workflow
81
GECIS IT Services
Sales Order Returns – Lines Workflow
Line Flow - Return for Credit with Receipt
Line Flow - Return for Credit only
Line Flow - Return for Credit only with Approval
82
GECIS IT Services
Sales Order Returns – Lines Workflow
Line Flow - Supporting inbound and outbound shipments
83
GECIS IT Services
Configurator
Configurator is an add-on product in OM, launched from the Sales
Order.
Purpose: To more accurately tailor a customer order by:
– Reducing configuration errors
– Reducing the need for amending existing orders, thereby
reducing the need to remanufacture product
– BOM model is required in order to configure an order.
84
GECIS IT Services
Bill Of Material
A list of component items associated with a parent item and
information about how each item is related to the parent item.
BOM Types:
•Standard BOM
•Model BOM
•Option Class
•Planning
•Engineering
Option Class:
An item whose bill of material contains a list of related options.
85
GECIS IT Services
Assemble to Order and Pick to Order
Assemble to Order (ATO) and Pick to Order (PTO) are
stocking strategies that are used by manufacturers, when they
can produce finished products from relatively small number of
sub assemblies and components.
This stocking strategy is widely know as ‘hourglass’ strategy,
where you maintain inventory at the narrowest level in bill
structure.
86
GECIS IT Services
Model Item and Kit
Model Item:
An item whose bill of material lists options and option classes
available when you place an order for the model item.
Kit:
A Kit is a model where it has no options and you order directly by
its item number, not using configuration selection screen in OM.
Phantom:
A phantom assembly is a non–stocked assembly that lets you group
together material needed to produce a subassembly.
87
GECIS IT Services
Valid Parent/Component Relationship
88
GECIS IT Services
Let us understand BOM Structure
89
GECIS IT Services
Item Templates at Top-Level items
Assemble to Order Model Pick to Order Model
BOM Item type = Model BOM Item type = Model
BOM Allowed = Yes BOM Allowed = Yes
Planning Method = MPS Planning Planning Method = Not Planned
Forecast Control = Consume Build WIP = No
Build WIP = Yes OE Transactable = Yes
OE Transactable = Yes Check ATP = No
Check ATP = Yes ATP Components = Yes
ATP Components = Yes Pick Components= Yes
Assemble to Order = Yes
Assemble to Order Item Pick to Order Item
BOM Item type = Standard BOM Item type = Standard
BOM Allowed = Yes BOM Allowed = Yes
Planning Method = MRP Planning Planning Method = Not Planned
Forecast Control = Consume Build WIP = No
Build WIP = Yes OE Transactable = Yes
OE Transactable = Yes Check ATP = No
Check ATP = Yes ATP Components = Yes
ATP Components = Yes Pick Components= Yes
Assemble to Order = Yes
90
GECIS IT Services
Transacting a Kit - Steps
•Create a Sales Order with Item Kit

•Book and Schedule the Sales Order
•Pick Release the Sales Order
•Ship Confirm the Delivery
•Complete interfacing and invoicing.
91
GECIS IT Services
Transacting CTO - Steps
• Create a Sales Order with ATO Model
• Book and Schedule the Sales Order
• In BOM
• Run AutoCreate Configuration Items
Navigation: Bill of Materials -> ATO
(This process creates Configuration Item)
• In WIP
• Run AutoCreate Configuration Items
Navigation: WIP -> Discrete -> Autocreate Orders
(This process creates Discreate Job)
•Release Discreate Job
Navigation: WIP -> Discrete -> Discrete Job
•Perform Move Transactions
Navigation: WIP -> Move Transactions -> Move Transactions
• Fulfill Sales Order
92
GECIS IT Services
Processing Constraints
Define your Processing Constraints to:
prevent users from adding, updating, or deleting order
information
prevent splitting lines
prevent orders or return cancellation beyond certain points in
your order flows.
Use the seeded constraints Order Management provides to
prevent data integrity violations or create even greater constraint
options.
93
GECIS IT Services
Thank You
94
GECIS IT Services

Overview of Order Management Suite-1

Transféré par

Informations du document

Copyright

Formats disponibles

Partager ce document

Partager ou intégrer le document

Options de partage

Avez-vous trouvé ce document utile ?

Ce contenu est-il inapproprié ?

Droits d'auteur :

Formats disponibles

Overview of Order Management Suite-1

Transféré par

Droits d'auteur :

Formats disponibles

Oracle Applications - Order Management Suite

Oracle Work in Oracle Bills of

Oracle Oracle Invoice Customer

On opening, the default Operating Unit will display (MO:

Modules which are controlled at operating level are: OM, PO, AR

Modules which are controlled at inventory organization level are:

An Item Master Organization is used for item number maintenance

In Order Management, the Item Validation Organization parameter

Weight Unit of Measure

UPC (Universal Product Code)

Customer/generic items can be used in both on-line order entry and

Delivery lead time is very important determinant of the supply chain

Types of stock strategies:

The Basic Pricing component of Oracle Order Management provides

Who qualifies? Qualifiers

What is the product or service Product Hierarchy

How should I adjust the price? Modifiers

Party/Customer can be an Organization or Person.

Credit Worthiness Business Volume

Contacts Business Purpose

To Define Customer Profile Class:

Complete Complete Complete

Booking a sales order indicates that the order entry

Booking is required before the order or return can advance

Aspects of Order Schedule that OM Provides

“I have the numbers “Great, I may

“We need to ship “Sure, we’ve got

Assign a single ship set to all the lines in an order to

Ship From and Ship To Organization (a null value within

Scheduled Ship Date

Arrival sets can:

Order Line Scheduled Arrival Date

Picking: The process of withdrawing items from inventory to be

Pick release rule: A user-defined set of criteria to define what

Pick slip grouping rule: Criterion for grouping together various

Delivery: A set of order lines to be shipped to a customer’s ship-

Ship Confirm: To enter shipped quantity and inventory controls

Container Load Relationship: Item which requires packing should

LPN: LPN is an acronym for License Plate Number. A packing

Pick Release by Containers:

Delivery lines that have not been pick-released can be assigned

Equal Packing Delivery Lines into Containers:

General: You can define shipping units of measurement such as

If the Percent Fill Basis Shipping Parameter is set to Weight or

Shipping Transaction: You can define automatic or manual weight

Roles can be assigned to permit or restrict a user’s access to

Inventory Schedule Enter Order

Enter Book - Order, Close - Order End

How it defaults values?

•External Customer Sales Order

Inventory Schedule Enter Order

A requisition in the Purchasing system that will directly

Internal Requisition/Internal Sales Order provide the

Because internal orders are processed through the sales order

Create customer records to correspond to internal locations,

Direct Intransit Inventory Expense

Order Management sends information to the Purchasing Application

In this process, the company running Order Management is modeled

Drop Ship: Yes or No?

Send to Purchasing Schedule

Supplier ship confirmation Ship and update inventory

Close sales order

Order Source Type : External

•Ensure you have created your Order Management Transaction