Drop Ship Sales Order Across Operating Unit R12i

Drop Ship Sales Order Across Operating Unit R12i
eoracleapps.blogspot.com
12/09/21 eoracleapps.blogspot.com 1
Introduction
 This presentation is about how to Create Drop
Ship Sales Order Across the Operating Units
in R12i and then how to perform Inter
company Transactions.
 I am Oracle Apps/BPEL/Workflow Analyst and
blogger with 14+ Years of Experience.
 eoracleapps@hotmail.com
 Blog – eoracleapps.blogspot.com
Topics of Discussion
 Drop Ship Sales Order

 Order Management Sales Order
 Requisition
 PO Creation (Auto Create)
 Receiving
 Invoicing (AR/AP)
 Inter company Transaction.
Drop Ship Sales Order across Operating Units
Drop shipping functionality enables you to take an order from your customer and fulfill
it directly from your supplier's site. Order Management enables you to enter drop ship
sales orders and lines for standard, model and kit, and configured items, although you
currently cannot perform a drop shipment for Ship Model Complete (SMC) PTO's.
You can receive orders for items that you do not stock or for which you lack sufficient
inventory, and have a supplier provide the items directly to your customer.
This Presentation is more about Drop Ship across OUs , I am not discussing about What
is drop ship and How to create drop ship Orders here.
When processing drop shipments for orders, you can:

• Optionally receive and electronically process Advanced Shipping Notices (ASN).
• Automatically perform logical receipts upon notification of shipment
• Perform Drop Ship for both make and buy items, and automatically default the source
type of External for order lines which need to be drop shipped
Reservations
Once an order line has been specified as an External order, Order Management does
not allow reservations to be placed against the order line.
Both standard and expense items may be drop shipped, although drop shipments
currently support a Destination Type (item attribute) of Expense and
Inventory only.
Change Management
If the buyer makes changes to the requisition or purchase order
in Oracle Purchasing after Purchase Release has been run, or modifies
the sales order after the PO has been created, use the Order
Management Sales Order and Purchase Order Discrepancy Report to
note differences between the original sales order and its associated
purchase order.
With new R12i Change management – Now Changes made to OM will reflect in
PO.Please refer similar posts on my blog
You can now Drop Ship across Ledgers, operating units, or legal entities. A
common scenario involves manufacturing facilities in some countries, sales
organizations in others, and financial companies in several others. These entity
structures allow multinationals to avail themselves of the benefits of each legal
environment in which they are organized. They also allow companies to provide
products to market quickly and profitably, taking advantage of regional 'hub'
operations that rationalize product demand and control supply sourcing in a
centralized fashion.
The ability to drop-ship goods across Ledgers, operating units, or legal entities is
a major business requirement for today's businesses. Formerly it was not possible
to drop ship across operating units and Ledgers in Oracle Applications. The
introduction of cross operating unit drop ships raised the need for hybrid drop
shipments where the sales order is drop shipped to one, but not both, of the
organizations involved in executing the transaction
 Drop Ship across ledgers, operating units, or legal entities. With the enhanced Drop
Ship, functionality, you can choose a warehouse that belongs to a different
operating unit (OU), legal entity, or ledgers than the order taking organization.
 For drop ship lines, the cost of the item is taken from the organization that has been
specified in the Finance Options window (Financial System Parameters).
 The Process flow for drop ship across Ledger remains the same as the existing drop
ship process, except that the requisitions and purchase orders are now created in
different operating units. Intercompany transactions are performed when the
logical receipt and delivery transactions occur for the purchase order.
Test Case
 Create Drop Ship Sales Order in Operating Unit – Singapore Distribution Center with
Warehouse V1 ( belongs to Operating Unit -Vision Operations).
 Book and Progress the Drop Ship Sales Order Line.
 Since Warehouse associated with the Sales Order belongs to Operating Unit - Vision
Operations , System will Create Purchase Requisition and PO in Operating Unit – Vision
Operations
 Receive goods in V1 Against the PO.
 Receiving Transaction Processor (RTP) , will Created AP Invoice in Operating Unit – Vision
Operations .
 Once Order Line Fulfilled , It Push the data in AR Invoice Interface and execution of Auto-
Invoice Results in creation of Receivable Invoice in Operating Unit – Singapore Distribution
Center.
 Run Inter-company AR Invoice Creation and it will Create Inter-company AR Invoice in

Operating Unit – Vision Operations.
 Selling Org – Singapore Distribution Center

 Shipping Org – Vision Operations
Steps For a Drop Ship Sales Order

1. Create Sales Order, enter Source Type = External in Lines.
2. Book the Sales Order .
3. Workflow Seeded process detect it is Drop Ship(Source Type) and moves the line to
Purchase Release – Deferred
4. Run the Workflow Background Process to progress workflow
5. Run Requisition Import.
6. Create PO ( Auto Create).
7. Receive PO.
8. RTP will Push the Workflow for Invoicing and finally close.
9. For Inter company we need to run additional programs.
Create Sales Order (in Singapore Distribution Center)
Create Drop Ship Sales Order in OU- Singapore Distribution Center
Create Sales Order Line (in Singapore Distribution Center)
Add Line to Drop Ship Sales Order
Sales Order Line for Drop Ship (in Singapore Distribution Center)
Order Line
Sales Order Line for Drop Ship (in Singapore Distribution Center)
Make sure that Source Type = External to make it Drop Ship line
Run the Workflow background Process
When we books a Drop Ship Sales Order Workflow Seeded process detect it is
Drop Ship(Source Type) and moves the line to Purchase Release – Deferred
Run workflow Background process to Progress the Order line
Run Requisition Import (For Vision Operations)
Once WBP completes , It insert data into requisition Interface table.Run the Requisition
Import ,Import Process will create requisitions in Purchasing (in Operating Unit – Vision
Operations)
Requisition /PO Creation (in Vision Operations)
Once Requisition is created , you can get it’s details from Action > Additional Line Information.
In my Case I have already Created PO ,. That’s the Reason Document Type = PO.
Query the Requisition. (in Vision Operations)
Query for the Requisition Number
Auto Created Purchase Order from Requisition (in Vision Operations)
In Purchasing Select the Auto Create to Create Purchase Order from Requisition.
PO Created. (in Vision Operations)
Auto create Process will create Purchase Order, Approve the PO.
PO Details (in Vision Operations)
Open the Lines and verify that PO is associated with Correct receiving Org as well as Marked as
Drop Ship PO
PO Details (in Vision Operations)
Navigate to Drop Ship tab and verify the associated Sales Order and Line.
Receiving against Drop Ship PO (in Vision Operations)
Once PO is Approved , Create receipt against it
Receiving against Drop Ship PO (in Vision Operations)
Create receipt against PO
Receiving Summary against Drop Ship PO (in Vision Operations)
Once receipt is Created , go to Receipt Transaction Summary and Validate and View the receipt data.
Navigate Inventory > Receipt > Receipt Transaction Summary and Validate and View the receipt data.
There should be 2 transactions. Receive /Deliver.
Navigate Inventory > Receipt > Receipt Transaction Summary and Validate and View the receipt data.
Please Note that when we Save the receipt , System submit the receiving Transaction Processor
(RTP) as well as other concurrent program based on your setup.
In my Case I have define the Setup “Pay on receipt” (Pay vendor on receipt” , Saving of receipt will
Trigger following concurrent programs
ADS (Pay on receipt).

Payable Open Interface.
ADS (Pay on receipt). – Insert the Data into AP_INVOICES_INTERFACE Table
Payable Open Interface. – Process the data in AP_INVOICES_INTERFACE Table and creates
invoices in Oracle payables.
Receiving Transaction Process for Drop Ship Sales Order
lease Note that when we Save the receipt , System submit the receiving Transaction Processor (RTP)
s shown below
n my Case I have define the Setup “Pay on receipt” (Pay vendor on receipt” , Saving of receipt will
rigger following concurrent programs
. ADS (Pay on receipt).
. Payable Open Interface.
Oracle Payable Invoice in Vision Operations.
Oracle Payable Invoice in Vision Operations
Receiving Transaction Process for Drop Ship Sales Order
RTP will also Progress the Sales Order line from Ship Activity .
Once the Sales Order line Progress the Workflow Invoicing Activity , It push the Invoicing data from
Order management to AR Invoice Interface tables. Run Auto Invoice to Process the Invoicing data.
AR Invoices Created (in Singapore Distribution center)
Auto Invoice Process will cerates AR invoice
AR Invoices (in Singapore Distribution center).
AR Invoices (in Singapore Distribution center).
Run the Inter-company Process to Create Inter company AR Invoices.
Inter-company process will Create AR Invoices in Vision Operations (Shipping Org).
Inter-company AR Invoice
Inter Company Setup
Inter Company Setup
Q&A - Drop Ship Sales Order across Operating Units
 Feel free to contact me for any question related to this Topic

Drop Ship Sales Order Across Operating Unit R12i

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Drop Ship Sales Order Across Operating Unit R12i

 Drop Ship Sales Order

When processing drop shipments for orders, you can:

• Automatically perform logical receipts upon notification of shipment

 Book and Progress the Drop Ship Sales Order Line.

 Receive goods in V1 Against the PO.

 Run Inter-company AR Invoice Creation and it will Create Inter-company AR Invoice in

 Selling Org – Singapore Distribution Center

Steps For a Drop Ship Sales Order

Create Drop Ship Sales Order in OU- Singapore Distribution Center

Add Line to Drop Ship Sales Order

Run workflow Background process to Progress the Order line

Query for the Requisition Number

Once PO is Approved , Create receipt against it

Create receipt against PO

ADS (Pay on receipt).

ADS (Pay on receipt). – Insert the Data into AP_INVOICES_INTERFACE Table

Auto Invoice Process will cerates AR invoice

 Feel free to contact me for any question related to this Topic

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