Order To Cash

11i Order to Cash
Fundamentals Ed. 2.0

Student Guide
D11435GC20
Edition 2.0
October 2003
D11435
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Author
Eric O’Brien, Pamela Freeman, Jinny Valenzuela, Kathryn Wohnoutka, David Barnacle, Doug
Myers
Technical Contributors and Reviewers
Terri North, Dave Millin, Kristin Penaskovic, Kathy Weitzel, Atul Rai, Elizabeth Looney, Carol
Chang, Tony Cash, Lori Burke
This book was published using: oracletutor

Table of Contents
Order to Cash Lifecycle Overview .................................................................................................................1-1

Order to Cash Lifecycle Overview ................................................................................................................1-2
Objectives ......................................................................................................................................................1-3
Order to Cash Lifecycle.................................................................................................................................1-4
Order Lifecycle..............................................................................................................................................1-6
Overview of Application Integration.............................................................................................................1-7
Order Management Process...........................................................................................................................1-8
Scheduling Process ........................................................................................................................................1-9
Viewing and Managing Orders......................................................................................................................1-10
Pricing Process ..............................................................................................................................................1-11
Shipping Process ...........................................................................................................................................1-12
AutoInvoice Process ......................................................................................................................................1-13
Receivables Process.......................................................................................................................................1-14
Cash Management Process ............................................................................................................................1-15
Summary........................................................................................................................................................1-16
Overview of Oracle Order Management Process .........................................................................................2-1
Overview of Oracle Order Management Process ..........................................................................................2-2
Objectives ......................................................................................................................................................2-3
Overview of Order Management in the Order to Cash Lifecycle ..................................................................2-4
Overview of Order Management Integration.................................................................................................2-5
Overview of the Order Management Process ................................................................................................2-6
Overview of Customer Relationships ............................................................................................................2-7
Overview of Inventory Organizations ...........................................................................................................2-8
Overview of Inventory Items.........................................................................................................................2-9
Overview of Order Entry...............................................................................................................................2-10
Overview of Managing Orders ......................................................................................................................2-11
Summary........................................................................................................................................................2-12
Overview of Pricing .........................................................................................................................................3-1
Overview of Pricing.......................................................................................................................................3-2
Objectives ......................................................................................................................................................3-3
Overview of Pricing in the Order to Cash Process ........................................................................................3-5
Overview of Pricing Integration ....................................................................................................................3-6
Overview of the Pricing Concept ..................................................................................................................3-8
Overview of the Pricing Engine ....................................................................................................................3-9
Overview of Price Lists .................................................................................................................................3-10
Overview of Qualifiers and Modifiers...........................................................................................................3-11
Overview of Basic vs. Advanced Pricing ......................................................................................................3-12
Summary........................................................................................................................................................3-14
Overview of Oracle Shipping Execution........................................................................................................4-1
Overview of Oracle Shipping Execution .......................................................................................................4-2
Objectives ......................................................................................................................................................4-3
Overview of Shipping in the Order to Cash Process .....................................................................................4-5
Overview of the Shipping Process.................................................................................................................4-6
Overview of Shipping Execution Integration ................................................................................................4-7
Overview of Shipping Concepts....................................................................................................................4-8
Overview of Pick Release..............................................................................................................................4-9
Overview of Pick Confirm and Staging Sub-inventory .................................................................................4-10
Overview of Delivery Management ..............................................................................................................4-11
Overview of Ship Confirmation ....................................................................................................................4-12
11i Order to Cash Fundamentals Ed. 2.0 Table of Contents

i
Summary........................................................................................................................................................4-13
Overview of Oracle Receivables Process .......................................................................................................5-1
Overview of Oracle Receivables Process ......................................................................................................5-2
Objectives ......................................................................................................................................................5-3
Overview of Receivables in the Order to Cash Process.................................................................................5-5
Overview of the Receivables Process............................................................................................................5-6
Overview of Receivables Integration ............................................................................................................5-7
Overview of the Transaction Process ............................................................................................................5-8
Overview of Other Invoice Operations..........................................................................................................5-9
Overview of Adjustments ..............................................................................................................................5-10
Overview of Credit Memos ...........................................................................................................................5-11
Overview of the AutoInvoice Process ...........................................................................................................5-12
Overview of Receipts and Remittances .........................................................................................................5-13
Overview of Collections ................................................................................................................................5-14
Overview of Tax............................................................................................................................................5-15
Summary........................................................................................................................................................5-16
Overview of Oracle Cash Management .........................................................................................................6-1
Overview of Oracle Cash Management.........................................................................................................6-2
Objectives ......................................................................................................................................................6-3
Agenda...........................................................................................................................................................6-4
Order Lifecycle..............................................................................................................................................6-6
Cash Management Integration.......................................................................................................................6-7
Agenda...........................................................................................................................................................6-8
Functions with Receivables ...........................................................................................................................6-9
Reconciliation Process...................................................................................................................................6-10
Load Bank Statements ...................................................................................................................................6-11
Bank Reconciliation Overview......................................................................................................................6-12
Agenda...........................................................................................................................................................6-13
Cash Forecasting Functions...........................................................................................................................6-14
Steps in Cash Forecasting..............................................................................................................................6-15
Cash Forecast Template.................................................................................................................................6-16
Cash Forecasting Sources ..............................................................................................................................6-17
Summary........................................................................................................................................................6-18
Manage Parties and Customer Accounts.......................................................................................................7-1
Manage Parties and Customer Accounts .......................................................................................................7-2
Objectives ......................................................................................................................................................7-3
Agenda...........................................................................................................................................................7-4
Party Model Overview...................................................................................................................................7-5
Party Model ...................................................................................................................................................7-7
Party Model and Relationships......................................................................................................................7-8
Party Model Components ..............................................................................................................................7-10
Managing Parties ...........................................................................................................................................7-11
Party Sites......................................................................................................................................................7-12
Customer Accounts........................................................................................................................................7-13
Integrating Party Information ........................................................................................................................7-14
Agenda...........................................................................................................................................................7-15
Profile Classes ...............................................................................................................................................7-16
Profile Class Characteristics ..........................................................................................................................7-17
Guided Demostration - Create a Profile Class ...........................................................................................7-18
Practice - Create a Profile Class ................................................................................................................7-19
Solution - Create a Profile Class................................................................................................................7-20
Managing Customer Account Profiles...........................................................................................................7-23
Updating Profile Classes ...............................................................................................................................7-24

ii
Reviewing Profile Class Changes..................................................................................................................7-25
Agenda...........................................................................................................................................................7-26
Data Quality Management Overview ............................................................................................................7-27
Fuzzy Search .................................................................................................................................................7-28
Query Word Replacement .............................................................................................................................7-29
Entry Methods ...............................................................................................................................................7-30
Business Issues ..............................................................................................................................................7-31
Business Purposes..........................................................................................................................................7-32
Multiple Sites and Business Purposes: Centralized Example ........................................................................7-33
Multiple Sites and Business Purposes: Decentralized Example ....................................................................7-34
Interface Data Entry.......................................................................................................................................7-35
Using Standard and Quick Entry ...................................................................................................................7-37
Guided Demostration - Enter a Standard Customer...................................................................................7-39
Practice - Enter a Standard Customer ........................................................................................................7-41
Solution - Enter a Standard Customer .......................................................................................................7-42
Differences Between Standard and Quick Entry ..........................................................................................7-47
Guided Demonstration - Enter a Quick Customer .....................................................................................7-48
Practice - Enter a Quick Customer ............................................................................................................7-49
Solution - Enter a Quick Customer............................................................................................................7-50
Dun & Bradstreet (D&B) Integration ............................................................................................................7-52
D&B Data Formats........................................................................................................................................7-53
D&B Online...................................................................................................................................................7-54
D&B Batch Loading......................................................................................................................................7-55
Data Quality Management (DQM) ................................................................................................................7-56
How Does DQM Work? ................................................................................................................................7-57
Agenda...........................................................................................................................................................7-58
Customer Account Relationships ..................................................................................................................7-59
Guided Demonstration - Create Customer Relationships ..........................................................................7-60
Practice - Create Customer Relationships..................................................................................................7-62
Solution - Create Customer Relationships.................................................................................................7-63
Agenda...........................................................................................................................................................7-64
Merge Parties or Customer Accounts ............................................................................................................7-65
Party Merge ...................................................................................................................................................7-67
Guided Demonstration - Perform a Customer Merge................................................................................7-68
Agenda...........................................................................................................................................................7-69
Reviewing Information..................................................................................................................................7-70
Common Search Scenarios ............................................................................................................................7-71
Reports...........................................................................................................................................................7-72
Agenda...........................................................................................................................................................7-74
Required Customer Profile Setup Steps.........................................................................................................7-75
Collectors.......................................................................................................................................................7-76
Payment Terms ..............................................................................................................................................7-77
Optional Customer Profile Setup Steps .........................................................................................................7-78
Required Setup Steps for Customers .............................................................................................................7-80
Profile Options...............................................................................................................................................7-81
Optional Setup Steps for Customers..............................................................................................................7-83
Flexible Address Formatting .........................................................................................................................7-85
Agenda...........................................................................................................................................................7-87
Oracle Trading Community Architecture ......................................................................................................7-88
TCA Parties ...................................................................................................................................................7-89
TCA Administration ......................................................................................................................................7-90
Using Party Paying Relationships .................................................................................................................7-91
Using Customer Account Relationships ........................................................................................................7-92
Party Paying and Customer Account Relationships ......................................................................................7-93
Creating Party Paying Relationships .............................................................................................................7-94
Pay Within Paying Relationships ..................................................................................................................7-95
Party Paying Relationships Process Flow......................................................................................................7-96

iii
Pay Below Paying Relationships ...................................................................................................................7-97
Relationship Types and Relationship Groups................................................................................................7-98
Summary........................................................................................................................................................7-99
Inventory Organizations .................................................................................................................................8-1
Inventory Organizations ................................................................................................................................8-2
Objectives ......................................................................................................................................................8-3
Agenda...........................................................................................................................................................8-4
What is Enterprise Structure? ........................................................................................................................8-5
Enterprise Structure Example 1 .....................................................................................................................8-7
Enterprise Structure Example 2 .....................................................................................................................8-8
Inventory Structure Considerations ...............................................................................................................8-10
Enterprise Structure in Vision .......................................................................................................................8-12
Guided Demonstration – Enterprise Structure in Vision Operations.........................................................8-13
Agenda...........................................................................................................................................................8-15
Define Units of Measure................................................................................................................................8-16
Unit of Measure Example..............................................................................................................................8-18
Define Unit of Measure Classes ....................................................................................................................8-19
Unit of Measure Conversion..........................................................................................................................8-20
Guided Demonstration - Create an Unit of Measure .................................................................................8-22
Practice - Create a Unit of Measure...........................................................................................................8-24
Solution – Create an Unit of Measure and Standard Conversion ..............................................................8-25
Defining Inter-class Conversions ..................................................................................................................8-27
Agenda...........................................................................................................................................................8-28
Defining Locations ........................................................................................................................................8-29
Examples of Locations ..................................................................................................................................8-30
Guided Demonstration - Create a Location ...............................................................................................8-31
Practice - Create a Location.......................................................................................................................8-33
Solution - Create a Location ......................................................................................................................8-34
Agenda...........................................................................................................................................................8-35
Inventory Organization Setup........................................................................................................................8-37
Guided Demonstrations - Create an Inventory Organization.....................................................................8-39
Guided Demonstrations - Create an Inventory Organization.....................................................................8-43
Setup Considerations for Order Management................................................................................................8-52
Agenda...........................................................................................................................................................8-53
Establishing Inventory Parameters ................................................................................................................8-54
Guided Demonstration - Establish Inventory Organization Parameters ....................................................8-55
Practice - Define Shipping Parameters ......................................................................................................8-58
Solution - Define Shipping Parameters......................................................................................................8-59
Inventory Parameters and Execution .............................................................................................................8-61
Inventory Parameters and Financial Impact ..................................................................................................8-62
Inventory Parameters and Order Management ..............................................................................................8-64
Agenda...........................................................................................................................................................8-65
Sub-Inventories..............................................................................................................................................8-66
Guided Demonstration - Create a Sub-Inventory ......................................................................................8-67
Practice - Create a Sub-Inventory..............................................................................................................8-69
Solution – Create a Sub-Inventory.............................................................................................................8-70
Summary........................................................................................................................................................8-73
Enter Items.......................................................................................................................................................9-1
Enter Items.....................................................................................................................................................9-2
Objectives ......................................................................................................................................................9-3
Agenda...........................................................................................................................................................9-4
What is an Item? ............................................................................................................................................9-5
Oracle Applications Use Items ......................................................................................................................9-6
How Do Oracle Applications Use Items?......................................................................................................9-7
Item Attributes...............................................................................................................................................9-9

iv
Item Statuses Representing the Life Cycle ....................................................................................................9-11
Item Attributes Used in Item Status...............................................................................................................9-13
Guided Demonstration - Create an Item Status .........................................................................................9-15
Item Master Organization and Child Organizations ......................................................................................9-16
Agenda...........................................................................................................................................................9-18
Creating an Item ............................................................................................................................................9-19
Implementation Considerations .....................................................................................................................9-20
Describing Item Attributes – Order Management .........................................................................................9-21
Describing Item Attributes - Invoicing..........................................................................................................9-25
Guided Demonstration - View Item Attributes..........................................................................................9-27
Describing Attributes Controls at Master Level ............................................................................................9-29
Describing Attributes Controls at Child Level ..............................................................................................9-30
Describing Item Status Attribute Controls.....................................................................................................9-32
Describing Item Templates............................................................................................................................9-33
Creating Item Templates ...............................................................................................................................9-34
Using Item Templates....................................................................................................................................9-36
Guided Demonstration - Create an Item ....................................................................................................9-37
Practice - Create an Item............................................................................................................................9-41
Solution – Create an Item ..........................................................................................................................9-42
Agenda...........................................................................................................................................................9-47
Describing Item Categories ...........................................................................................................................9-48
Create Item Categories ..................................................................................................................................9-49
Establish the Relationship Between the Category, Category Set and Item....................................................9-51
Guided Demonstration - Create a Category...............................................................................................9-52
Practice - Create a Material Transaction....................................................................................................9-53
Solution - Create a Material Transaction ...................................................................................................9-55
Describing and Using Item Catalogs .............................................................................................................9-58
Define Item Relationships – Order Management ..........................................................................................9-60
Guided Demonstration - Define Item Relationships..................................................................................9-61
Practice - Add an Item to a Price List ........................................................................................................9-62
Solution - Add an Item to a Price List .......................................................................................................9-63
Additional Setup Considerations ...................................................................................................................9-65
Summary........................................................................................................................................................9-67
Enter Orders ....................................................................................................................................................10-1
Enter Orders...................................................................................................................................................10-2
Objectives ......................................................................................................................................................10-3
Agenda...........................................................................................................................................................10-4
Order Creation Methods ................................................................................................................................10-5
Order Management Workflows .....................................................................................................................10-6
Defaulting Rules ............................................................................................................................................10-7
Credit Checking.............................................................................................................................................10-8
Agenda...........................................................................................................................................................10-9
Order Header .................................................................................................................................................10-10
Order Transaction Type.................................................................................................................................10-11
Entering Header Customer Information ........................................................................................................10-12
Entering Header Pricing Information ............................................................................................................10-13
Entering Additional Header Information .......................................................................................................10-15
Guided Demonstration - Entering Order Header .......................................................................................10-16
Applying Sales Credits ..................................................................................................................................10-18
Guided Demonstration - Applying Sales Credits.......................................................................................10-19
Practice - Create a Sales Order ..................................................................................................................10-20
Solution - Create a Sales Order Header .....................................................................................................10-21
Agenda...........................................................................................................................................................10-24
Line Transaction Type...................................................................................................................................10-25
Line Statuses..................................................................................................................................................10-26
Entering Line Information .............................................................................................................................10-27

v
Entering Line Pricing Information.................................................................................................................10-29
Guided Demonstration - Entering Line Pricing Information .....................................................................10-31
Line Pricing Fields.........................................................................................................................................10-33
Line Date Fields ............................................................................................................................................10-34
Entering Line Shipping Information..............................................................................................................10-35
Guided Demonstration - Entering Line Shipping Information ..................................................................10-36
Guided Demonstration - Entering Line Information..................................................................................10-37
Practice - Create a Sales Order ..................................................................................................................10-38
Solution - Create a Sales Order Line .........................................................................................................10-39
Entering Line Sets .........................................................................................................................................10-42
Guided Demonstration - Entering Line Sets..............................................................................................10-44
Entering Line Addresses................................................................................................................................10-47
Entering Return Information..........................................................................................................................10-48
Ordering Service Programs............................................................................................................................10-49
Guided Demonstration - Ordering Service Programs ................................................................................10-50
Entering Project Information .........................................................................................................................10-51
Splitting Order Lines .....................................................................................................................................10-52
Guided Demonstration - Splitting Order Lines..........................................................................................10-53
Practice - Split Line and Create Ship Set...................................................................................................10-54
Solution - Split Line and Create Ship Set ..................................................................................................10-55
Applying Attachments ...................................................................................................................................10-58
Guided Demonstration - Applying Attachments .......................................................................................10-59
Agenda...........................................................................................................................................................10-62
Scheduling - Available to Promise ................................................................................................................10-63
Guided Demonstration - Scheduling Available to Promise .......................................................................10-64
Scheduling - Schedule ...................................................................................................................................10-65
Guided Demonstration - Scheduling an Order Line ..................................................................................10-66
Scheduling - Reserve .....................................................................................................................................10-67
Guided Demonstration - Reserving an Order Line ....................................................................................10-68
Practice - Schedule Order ..........................................................................................................................10-69
Solution - Schedule Order .........................................................................................................................10-71
Scheduling Options........................................................................................................................................10-75
Agenda...........................................................................................................................................................10-76
Booking Orders .............................................................................................................................................10-77
Guided Demonstration - Booking Orders ..................................................................................................10-78
Practice - Book Order ................................................................................................................................10-79
Solution - Book Order ...............................................................................................................................10-80
Agenda...........................................................................................................................................................10-83
Copying Orders .............................................................................................................................................10-84
Guided Demonstration - Copying Orders ..................................................................................................10-85
Practice - Copy a Sales Order ....................................................................................................................10-86
Solution - Copy a Sales Order: ..................................................................................................................10-87
Agenda...........................................................................................................................................................10-91
Drop Ship Overview......................................................................................................................................10-92
Guided Demonstration - Creating Drop Ship Order Lines ........................................................................10-93
Internal Requisition Overview.......................................................................................................................10-95
Agenda...........................................................................................................................................................10-97
Import Orders Processing ..............................................................................................................................10-98
Guided Demonstration - Running Order Import........................................................................................10-99
Agenda...........................................................................................................................................................10-100
Required Setup Steps for Entering Orders.....................................................................................................10-101
Additional Required Setup Steps...................................................................................................................10-102
Profile Options...............................................................................................................................................10-103
Parameters .....................................................................................................................................................10-105
Steps Related to Invoicing .............................................................................................................................10-106
Tax.................................................................................................................................................................10-107
Quick Codes ..................................................................................................................................................10-108

vi
Workflow.......................................................................................................................................................10-109
Document Sequencing...................................................................................................................................10-110
Order Import Sources ....................................................................................................................................10-111
OM Transaction Types ..................................................................................................................................10-112
Customers ......................................................................................................................................................10-113
Items ..............................................................................................................................................................10-114
Optional Setup Steps for Entering Orders .....................................................................................................10-115
Summary........................................................................................................................................................10-117
Managing Orders.............................................................................................................................................11-1
Managing Orders ...........................................................................................................................................11-2
Objectives ......................................................................................................................................................11-3
Agenda...........................................................................................................................................................11-4
Order Organizer Overview ............................................................................................................................11-5
Find Orders....................................................................................................................................................11-6
Summary Form ..............................................................................................................................................11-8
Guided Demonstration – Summary Form..................................................................................................11-10
Navigator Tree Functionality.........................................................................................................................11-11
Guided Demonstration – Navigator Tree...................................................................................................11-12
Folder Files....................................................................................................................................................11-13
Guided Demonstration - Folder File ..........................................................................................................11-14
Practice - Order Organizer.........................................................................................................................11-15
Solution - Order Organizer ........................................................................................................................11-17
Agenda...........................................................................................................................................................11-22
Processing Constraints...................................................................................................................................11-23
Update Orders and Order Lines .....................................................................................................................11-25
Guided Demonstration – Update Order .....................................................................................................11-27
Practice - Update Order .............................................................................................................................11-28
Solution - Update Order.............................................................................................................................11-29
Mass Updates.................................................................................................................................................11-32
Guided Demonstration – Mass Change .....................................................................................................11-33
Practice - Mass Change .............................................................................................................................11-34
Solution - Mass Change.............................................................................................................................11-35
Agenda...........................................................................................................................................................11-41
Workflow Notification Overview..................................................................................................................11-42
Respond to Notification.................................................................................................................................11-43
Guided Demonstration – Workflow Notifications.....................................................................................11-44
Agenda...........................................................................................................................................................11-45
Automatic System Holds ...............................................................................................................................11-46
Hold Names ...................................................................................................................................................11-48
Guided Demonstration – Create Hold Name .............................................................................................11-49
Practice - Create Hold Name .....................................................................................................................11-50
Solution - Create Hold Name.....................................................................................................................11-51
Apply Holds...................................................................................................................................................11-53
Guided Demonstration – Apply Holds ......................................................................................................11-55
Practice - Apply Holds...............................................................................................................................11-57
Solution - Apply Holds..............................................................................................................................11-59
Release Holds ................................................................................................................................................11-70
Guided Demonstration – Release Holds ....................................................................................................11-72
Practice - Release Holds ............................................................................................................................11-74
Solution - Release Holds ...........................................................................................................................11-75
Agenda...........................................................................................................................................................11-83
Cancel Orders ................................................................................................................................................11-84
Guided Demonstration – Cancel Order......................................................................................................11-86
Practice - Cancel Order..............................................................................................................................11-88
Solution -Cancel Order ..............................................................................................................................11-89
Agenda...........................................................................................................................................................11-93

vii
Close Orders and Lines..................................................................................................................................11-94
Agenda...........................................................................................................................................................11-95
Order Purge ...................................................................................................................................................11-96
Guided Demonstration – Purge Order .......................................................................................................11-98
Summary........................................................................................................................................................11-99
Basic Pricing.....................................................................................................................................................12-1
Basic Pricing..................................................................................................................................................12-2
Objectives ......................................................................................................................................................12-3
Agenda...........................................................................................................................................................12-4
Pricing Engine Overview...............................................................................................................................12-5
Pricing Engine Pyramid.................................................................................................................................12-7
Agenda...........................................................................................................................................................12-8
Price List Creation .........................................................................................................................................12-9
Price List Header ...........................................................................................................................................12-10
Guided Demonstration – Price List Header ...............................................................................................12-12
Price List Line ...............................................................................................................................................12-13
Price List Line Values ...................................................................................................................................12-15
Guided Demonstration – Price List Line ...................................................................................................12-17
Price List Mapping for Basic Pricing ............................................................................................................12-19
Practice - Create Price List ........................................................................................................................12-20
Solution - Create Price List........................................................................................................................12-22
Copy Price List ..............................................................................................................................................12-28
Guided Demonstration – Create a Price List .............................................................................................12-29
Practice - Copy Price List ..........................................................................................................................12-30
Solution - Copy Price List .........................................................................................................................12-31
Agenda...........................................................................................................................................................12-33
Price List Maintenance - Overview ...............................................................................................................12-34
Manual Price List Updates.............................................................................................................................12-35
Guided Demonstration – Manual Price List Update..................................................................................12-36
Practice - Manual Price List Update ..........................................................................................................12-37
Solution - Manual Price List Update .........................................................................................................12-38
Adjust Price List ............................................................................................................................................12-39
Guided Demonstration – Adjust Price List................................................................................................12-41
Practice - Adjust Price List ........................................................................................................................12-42
Solution - Adjust Price List .......................................................................................................................12-43
Add Items to Price List..................................................................................................................................12-45
Guided Demonstration - Add Items to New Price List..............................................................................12-46
Add Items to Price List For Maintenance......................................................................................................12-47
Practice - Add Items to a Price List ...........................................................................................................12-48
Solution - Add Items to a Price List ..........................................................................................................12-49
Agenda...........................................................................................................................................................12-51
Agreement Overview.....................................................................................................................................12-52
Agreement .....................................................................................................................................................12-54
Guided Demonstration – Agreement Price List.........................................................................................12-55
Practice - Agreement Price List .................................................................................................................12-57
Solution - Agreement Price List ................................................................................................................12-58
Agenda...........................................................................................................................................................12-62
Formula Overview.........................................................................................................................................12-63
Basic Pricing Formula ...................................................................................................................................12-64
Pricing Attribute ............................................................................................................................................12-65
Factor List......................................................................................................................................................12-66
Guided Demonstration – Pricing Formula.................................................................................................12-68
Agenda...........................................................................................................................................................12-69
Qualifier Overview ........................................................................................................................................12-70
Seeded Qualifier Contexts .............................................................................................................................12-71
Agenda...........................................................................................................................................................12-73

viii
Modifier Overview ........................................................................................................................................12-74
Modifier Structure .........................................................................................................................................12-75
Modifier List..................................................................................................................................................12-76
Modifiers Lines .............................................................................................................................................12-78
Pricing Adjustment Examples .......................................................................................................................12-80
Discounts/Charges .........................................................................................................................................12-81
Guided Demonstration – Create Modifiers................................................................................................12-83
Practice - Create Modifiers ........................................................................................................................12-85
Solution - Create Modifiers .......................................................................................................................12-87
Summary........................................................................................................................................................12-95
Shipping............................................................................................................................................................13-1
Shipping.........................................................................................................................................................13-2
Objectives ......................................................................................................................................................13-3
Agenda...........................................................................................................................................................13-4
Ship Order .....................................................................................................................................................13-5
Shipping Concepts.........................................................................................................................................13-7
Pick Release Concepts...................................................................................................................................13-9
Shipping Transactions User Interface............................................................................................................13-11
Pick Release Process Flow ............................................................................................................................13-13
Ship Confirm Process Flow ...........................................................................................................................13-16
Delivery Line Processing Statuses.................................................................................................................13-19
Shipping Roles and User Security .................................................................................................................13-21
Agenda...........................................................................................................................................................13-22
Pick Release Parameters ................................................................................................................................13-23
Methods to Pick Release................................................................................................................................13-25
Configurable Process.....................................................................................................................................13-26
Auto Create Delivery.....................................................................................................................................13-28
Release Sales Orders .....................................................................................................................................13-29
Guided Demonstration – Release Sales Orders .........................................................................................13-31
Practice - Release Sales Orders .................................................................................................................13-33
Solution - Release Sales Orders.................................................................................................................13-34
Agenda...........................................................................................................................................................13-41
Shipping Parameters ......................................................................................................................................13-42
Ship Confirm .................................................................................................................................................13-43
Guided Demonstration – Ship Confirm Delivery ......................................................................................13-46
Practice - Ship Confirm Delivery ..............................................................................................................13-47
Solution - Ship Confirm Delivery..............................................................................................................13-48
Shipping Documents......................................................................................................................................13-62
Guided Demonstration – View Shipping Documents................................................................................13-64
Shipping Exceptions ......................................................................................................................................13-65
Guided Demonstration – View Shipping Exceptions ................................................................................13-67
Agenda...........................................................................................................................................................13-69
Shipping Parameters ......................................................................................................................................13-70
Pick Release Parameters ................................................................................................................................13-72
Delivery Grouping.........................................................................................................................................13-74
Shipping Exceptions ......................................................................................................................................13-76
Guided Demonstration – Define Shipping Exceptions ..............................................................................13-78
Pick Slip Grouping Rules ..............................................................................................................................13-79
Guided Demonstration – Define Pick Slip Grouping Rules ......................................................................13-80
Practice - Define Pick Slip Grouping Rules ..............................................................................................13-81
Solution - Define Pick Slip Grouping Rules..............................................................................................13-82
Release Sequence Rules ................................................................................................................................13-83
Guided Demonstration – Define Release Sequence Rules ........................................................................13-85
Practice - Define Release Sequence Rules.................................................................................................13-86
Solution -Define Release Sequence Rules.................................................................................................13-87
Release Rules.................................................................................................................................................13-88

ix
Guided Demonstration – Define Release Rules.........................................................................................13-90
Practice - Define Release Rules.................................................................................................................13-92
Solution - Define Release Rules ................................................................................................................13-93
Container Load Details ..................................................................................................................................13-95
Guided Demonstration – Define Container Load Details ..........................................................................13-96
Ship Methods- Carriers- Relationships..........................................................................................................13-97
Guided Demonstration – Define Carrier Ship Methods.............................................................................13-100
Guided Demonstration – Define Freight Carriers......................................................................................13-101
Freight Cost Types.........................................................................................................................................13-102
Guided Demonstration – Define Freight Cost Types.................................................................................13-103
Freight Cost – Freight Charges......................................................................................................................13-104
Shipping Document Sets ...............................................................................................................................13-106
Guided Demonstration – Define Document Sets.......................................................................................13-107
Choose Printers..............................................................................................................................................13-108
Shipping Roles and User Security .................................................................................................................13-109
Guided Demonstration – Define Roles ......................................................................................................13-110
Guided Demonstration – Grant Access to Roles .......................................................................................13-111
Practice - Define a Shipping Role..............................................................................................................13-112
Solution - Define a Shipping Role.............................................................................................................13-113
Practice - Define Roles ..............................................................................................................................13-114
Solution - Define Roles .............................................................................................................................13-115
Practice - Grant Access to Roles................................................................................................................13-120
Solution -Grant Access to Roles................................................................................................................13-121
Agenda...........................................................................................................................................................13-123
Shipping Programs and APIs.........................................................................................................................13-124
Summary........................................................................................................................................................13-125
Process Invoices ...............................................................................................................................................14-1
Process Invoices ............................................................................................................................................14-2
Objectives ......................................................................................................................................................14-3
Agenda...........................................................................................................................................................14-4
Oracle Receivables Overview........................................................................................................................14-5
Transactions Overview ..................................................................................................................................14-7
Transactions Workbench Windows ...............................................................................................................14-8
Guided Demonstration - Review Transaction Workbench ........................................................................14-9
Agenda...........................................................................................................................................................14-10
Invoice Entry Methods ..................................................................................................................................14-11
Creating a Standard Invoice Manually ..........................................................................................................14-12
Invoice Components ......................................................................................................................................14-13
Guided Demonstration - Define Batch Source ..........................................................................................14-15
Guided Demonstration - Define Line Ordering Rules ...............................................................................14-18
Transactions Window Tabs ...........................................................................................................................14-20
Required Transaction Information.................................................................................................................14-22
Entering Invoice Dates ..................................................................................................................................14-23
Transaction Defaults......................................................................................................................................14-24
Standard Invoice Line Types .........................................................................................................................14-26
Entering Freight Invoices or Lines ................................................................................................................14-27
Entering Sales Credits ...................................................................................................................................14-28
Completing Transactions ...............................................................................................................................14-30
Guided Demonstration - Enter Invoice ......................................................................................................14-31
Practice - Enter and Complete an Invoice..................................................................................................14-32
Solution - Enter and Complete an Invoice.................................................................................................14-33
Creating Invoice Batches...............................................................................................................................14-35
View Currency Details ..................................................................................................................................14-36
Agenda...........................................................................................................................................................14-38
Creating Copies of Invoices...........................................................................................................................14-39
Using Recurring Rules...................................................................................................................................14-40

x
Guided Demostration - Copy Invoices ......................................................................................................14-42
Practice - Copy Invoice .............................................................................................................................14-43
Solution - Copy Invoice.............................................................................................................................14-44
Creating Invoices with Rules.........................................................................................................................14-46
Guided Demonstration - Define Grouping Rules ......................................................................................14-47
Accounting Rules ..........................................................................................................................................14-49
Assigning Accounting Rules to Invoice Lines...............................................................................................14-50
Using Invoices With Rules ............................................................................................................................14-51
Example of Billing in Advance .....................................................................................................................14-52
Example of Billing in Arrears........................................................................................................................14-53
Guided Demonstration - Use Rules ...........................................................................................................14-54
Deferred Accounting Rules ...........................................................................................................................14-55
Revenue Recognition Program ......................................................................................................................14-56
Guided Demonstration - Run Revenue Recognition..................................................................................14-58
How Oracle Receivables Uses Statements ....................................................................................................14-59
Making Adjustments Using Revenue Accounting.........................................................................................14-60
Setup Details Report......................................................................................................................................14-61
AR: Use Statement Site and Dunning Site Profiles .......................................................................................14-62
Agenda...........................................................................................................................................................14-63
Invoice Transaction Flow ..............................................................................................................................14-64
Invoice Correction Methods ..........................................................................................................................14-65
Overview of Corrections................................................................................................................................14-66
Overview of Corrections (Continued) ...........................................................................................................14-67
Updating Invoices..........................................................................................................................................14-68
Creating Debit Memos...................................................................................................................................14-69
Creating Adjustments ....................................................................................................................................14-70
Guided Demonstration - Enter an Adjustment...........................................................................................14-71
Applying Different Types of Credits .............................................................................................................14-72
Credit Memo Options ....................................................................................................................................14-73
Guided Demonstration - Enter a Credit Memo..........................................................................................14-75
Practice - Create a Credit Memo................................................................................................................14-76
Solution - Create a Credit Memo ...............................................................................................................14-77
On-Account Credit Options...........................................................................................................................14-80
Guided Demonstration - Enter On-Account Credit ...................................................................................14-81
Reversing Sales Credits .................................................................................................................................14-82
Creating Refunds ...........................................................................................................................................14-83
Voiding Transactions.....................................................................................................................................14-85
Agenda...........................................................................................................................................................14-86
Transaction Types..........................................................................................................................................14-87
Define Transaction Types..............................................................................................................................14-88
Deposit Transaction Type..............................................................................................................................14-89
Agenda...........................................................................................................................................................14-90
Reports...........................................................................................................................................................14-91
Printing Transactions.....................................................................................................................................14-92
Process for Printing Transactions ..................................................................................................................14-93
Guided Demonstration - Print Transactions ..............................................................................................14-94
Practice - Print Transactions ......................................................................................................................14-95
Solution - Print Transactions .....................................................................................................................14-96
Using Consolidated Billing............................................................................................................................14-98
Guided Demonstration - Run Consolidated Billing...................................................................................14-99
Practice - Print Consolidated Billing .........................................................................................................14-100
Solution - Print Consolidated Billing.........................................................................................................14-101
Guided Demonstration - Correct Errors.....................................................................................................14-103
Practice - Correct Errors ............................................................................................................................14-104
Solution - Correct Errors ...........................................................................................................................14-105
Agenda...........................................................................................................................................................14-109
Event-Based Revenue Management ..............................................................................................................14-110

xi
Automated Process ........................................................................................................................................14-111
Evaluating Invoices for Event–Based Revenue Management .......................................................................14-112
Collectibility Requirements for Revenue Recognition ..................................................................................14-113
How Collectibility Requirements Relate to Invoices.....................................................................................14-114
Applying Receipts and Event–Based Revenue Management ........................................................................14-115
Agenda...........................................................................................................................................................14-116
XML Receivables Documents.......................................................................................................................14-117
XML Invoices Process Flow .........................................................................................................................14-118
Sending XML Invoice Documents ................................................................................................................14-120
Confirming the Import Status of XML Invoice Documents ..........................................................................14-121
XML Invoice Documents ..............................................................................................................................14-122
Reviewing and Retransmitting XML Invoice Documents............................................................................14-123
Agenda...........................................................................................................................................................14-124
Promised Commitment Amounts ..................................................................................................................14-125
Summary........................................................................................................................................................14-126
Manual Receipts ..............................................................................................................................................15-1
Manual Receipts ............................................................................................................................................15-2
Objectives ......................................................................................................................................................15-3
Agenda...........................................................................................................................................................15-4
Oracle Receivables Overview........................................................................................................................15-6
Overview of Receipts ....................................................................................................................................15-7
Receipt Creation ............................................................................................................................................15-8
Cash Receipt Statuses....................................................................................................................................15-10
Manual Receipt Entry Process.......................................................................................................................15-11
Manual Receipt Types ...................................................................................................................................15-12
Manual Receipts Versus QuickCash Receipts...............................................................................................15-14
Guided Demostration - Enter Manual Receipts .........................................................................................15-15
Practice - Enter Manual Receipts...............................................................................................................15-16
Solution - Enter Manual Receipts..............................................................................................................15-17
Creating Batches............................................................................................................................................15-20
Validating Receipts in Batches ......................................................................................................................15-21
Batch Statuses................................................................................................................................................15-22
Guided Demonstration - Create Receipt Batch..........................................................................................15-23
Agenda...........................................................................................................................................................15-24
Applying Batch Receipts ...............................................................................................................................15-25
Applying Receipts to an Invoice....................................................................................................................15-26
Applications Window ....................................................................................................................................15-27
Guided Demonstration - Apply Receipts...................................................................................................15-28
Practice - Apply Receipt............................................................................................................................15-29
Solution - Apply Receipt ...........................................................................................................................15-30
Criteria for Mass Applying Receipts .............................................................................................................15-31
Guided Demonstration - Use Mass Apply .................................................................................................15-32
Practice - Use Mass Apply ........................................................................................................................15-33
Solution – Use Mass Apply .......................................................................................................................15-34
Applying Cross Currency Receipts................................................................................................................15-35
Guided Demonstration - Apply Cross Currency Receipt...........................................................................15-36
Entering Discounts ........................................................................................................................................15-37
Agenda...........................................................................................................................................................15-38
Chargebacks and Adjustments.......................................................................................................................15-39
Chargebacks and Adjustments against Transactions .....................................................................................15-40
Chargebacks against Receipts........................................................................................................................15-41
Creating a Chargeback...................................................................................................................................15-42
Working with Claims.....................................................................................................................................15-43
Creating Claims .............................................................................................................................................15-44
Resolving Claims...........................................................................................................................................15-45
Resolving Invoice Related Claims.................................................................................................................15-46

xii
Resolving Non–Invoice Related Claims........................................................................................................15-47
Resolving a Split Claim .................................................................................................................................15-48
Agenda...........................................................................................................................................................15-50
Balance Segments..........................................................................................................................................15-51
Deriving Balancing Segment Values.............................................................................................................15-52
Disabling the Balancing Segment Substitution Process for Activities ..........................................................15-53
AR: Disable Receivable Activity Balancing Segment Substitution ..............................................................15-54
Summary........................................................................................................................................................15-55
Tax Accounting Process ..................................................................................................................................16-1
Tax Accounting Process ................................................................................................................................16-2
Objectives ......................................................................................................................................................16-3
Agenda...........................................................................................................................................................16-4
Order Management Global Taxes Overview .................................................................................................16-5
Receivables Global Tax Overview ................................................................................................................16-6
Other Products ...............................................................................................................................................16-7
Global Tax Overview ....................................................................................................................................16-8
Tax Overview ................................................................................................................................................16-10
Value Added Tax Overview ..........................................................................................................................16-11
US Sales Tax Overview.................................................................................................................................16-12
US Sales Tax Example ..................................................................................................................................16-13
Tax Partner Process Overview.......................................................................................................................16-14
Other Taxes in Oracle Applications...............................................................................................................16-16
Agenda...........................................................................................................................................................16-18
Tax Setup Steps .............................................................................................................................................16-19
Tax Setup Steps Continued............................................................................................................................16-20
Defining Tax Codes and Rates ......................................................................................................................16-21
Setting Up Inclusive and Exclusive Tax........................................................................................................16-23
Guided Demonstration - Define Tax Code ................................................................................................16-24
Practice - Define Tax Codes ......................................................................................................................16-26
Solution - Define Tax Codes .....................................................................................................................16-27
Tax Groups Overview ...................................................................................................................................16-28
Setting Up Tax Groups (Optional).................................................................................................................16-29
Compound Tax Example ...............................................................................................................................16-30
Inclusive Tax with Compounding Example ..................................................................................................16-31
Defining Condition Sets ................................................................................................................................16-32
Guided Demonstration - Define Tax Group ..............................................................................................16-33
Practice - Create a Tax Group....................................................................................................................16-34
Solution - Create a Tax Group...................................................................................................................16-35
Select a Tax Control Method.........................................................................................................................16-37
Setting Up Account Method (Optional).........................................................................................................16-39
Assigning Tax Codes to Items .......................................................................................................................16-40
Defining Tax Preferences, Defaults, and Rules .............................................................................................16-41
Guided Demonstration - Explain Tax System Options..............................................................................16-43
Defining Tax Exemptions..............................................................................................................................16-46
Guided Demonstration - Define Tax Exemptions......................................................................................16-47
Defining Transaction Types ..........................................................................................................................16-48
Defining AutoAccounting for Tax.................................................................................................................16-49
Guided Demonstration - Define Tax AutoAccounting ..............................................................................16-50
Enabling Calculation of Tax on Freight ........................................................................................................16-51
Defining Tax Profile Options ........................................................................................................................16-52
For Order Management Profile Options ........................................................................................................16-53
Agenda...........................................................................................................................................................16-54
Tax Accounting Overview.............................................................................................................................16-55
Setting Up Tax Accounting for Deferred Tax ...............................................................................................16-56
Guided Demonstration - Define Deferred Tax ..........................................................................................16-57
Practice - Deferred Tax Codes...................................................................................................................16-58

xiii
Solution - Deferred Tax Codes ..................................................................................................................16-59
Defining Receivables Activities ....................................................................................................................16-61
Guided Demonstration - Define Tax Receivables Activities .....................................................................16-63
Changing Tax Transactions ...........................................................................................................................16-64
Adjusting Tax on Invoices.............................................................................................................................16-65
Tax Credit Memo...........................................................................................................................................16-67
Guided Demonstration - Enter a Tax Adjustment .....................................................................................16-68
Agenda...........................................................................................................................................................16-69
Tax Reporting Ledger Overview ...................................................................................................................16-70
Tax Extract Overview....................................................................................................................................16-71
Sources of Data..............................................................................................................................................16-73
Tax Ledger Reporting Options ......................................................................................................................16-74
Matrix Reporting ...........................................................................................................................................16-75
RXi Report Steps ...........................................................................................................................................16-76
Modifying Attribute Sets ...............................................................................................................................16-77
Defining Summary Details ............................................................................................................................16-79
Publish RXi Reports ......................................................................................................................................16-80
Guided Demonstration - Define Tax Register ...........................................................................................16-81
Guided Demonstration - Run Tax Register ...............................................................................................16-83
Managing Access to RXi Reports and Attribute Sets ....................................................................................16-84
Summary........................................................................................................................................................16-85
Period Closing Process ....................................................................................................................................17-1
Period Closing Process ..................................................................................................................................17-2
Objectives ......................................................................................................................................................17-3
Period Closing Process ..................................................................................................................................17-4
Overview of Ordering to Period Closing.......................................................................................................17-5
Standard Reports ...........................................................................................................................................17-6
Reconciling Inventory Transactions ..............................................................................................................17-7
Reconciling Receivables Transactions, Receipts, and Customer Balances ...................................................17-8
Running Revenue Recognition ......................................................................................................................17-10
Transferring to the General Ledger ...............................................................................................................17-11
Running the Journal Import Program ............................................................................................................17-13
Mapping Receivables Transactions to General Ledger Categories ...............................................................17-14
Summary........................................................................................................................................................17-15
Bank Reconciliation.........................................................................................................................................18-1
Bank Reconciliation ......................................................................................................................................18-2
Course Objectives..........................................................................................................................................18-3
Agenda...........................................................................................................................................................18-5
Reconciliation Overview ...............................................................................................................................18-7
Reconciliation Integration .............................................................................................................................18-8
Oracle Receivables and Payables ..................................................................................................................18-9
Oracle General Ledger and Payroll ...............................................................................................................18-10
AutoReconciliation Overview .......................................................................................................................18-11
Agenda...........................................................................................................................................................18-12
Setting Up Oracle Cash Management and Related Products .........................................................................18-13
Practice - Set up a Bank Account ..............................................................................................................18-14
Setting Up Oracle Cash Management System Parameters ............................................................................18-19
Practice - Set up Classes and Payment Methods........................................................................................18-20
Setting Up Bank Transaction Codes..............................................................................................................18-23
Practice - Set up Bank Transaction Codes.................................................................................................18-24
Agenda...........................................................................................................................................................18-27
Bank Statement Open Interface .....................................................................................................................18-28
Importing Bank Statements ...........................................................................................................................18-31
Bank Statement Validation ............................................................................................................................18-32
Bank Statement Interface Errors....................................................................................................................18-33
Setup for Bank Statement Open Interface .....................................................................................................18-34

xiv
Agenda...........................................................................................................................................................18-35
Entering Bank Statements Manually .............................................................................................................18-36
Entering Bank Statement Information Manually...........................................................................................18-37
Agenda...........................................................................................................................................................18-38
Archiving and Purging...................................................................................................................................18-39
Archiving and Purging Automatically...........................................................................................................18-40
Agenda...........................................................................................................................................................18-41
Reconciling Bank Statements Automatically ................................................................................................18-42
Agenda...........................................................................................................................................................18-43
Reconciling Bank Statements Manually........................................................................................................18-44
Creating Miscellaneous Transactions ............................................................................................................18-45
Recording a Bank Transmission Error...........................................................................................................18-46
Recording Transactions from External Systems...........................................................................................18-47
Reconciliation Open Interface .......................................................................................................................18-48
Agenda...........................................................................................................................................................18-49
Manually Clearing and Unclearing................................................................................................................18-50
Practice - Enter, Format, and Approve Receipts........................................................................................18-51
Solution – Enter, Format, and Approve Receipts ......................................................................................18-52
Clearing and Reconciling Transactions in Oracle Payables .........................................................................18-54
Clearing and Reconciling Transactions in Oracle Receivables ....................................................................18-55
Transferring Entries to Your General Ledger...............................................................................................18-56
Agenda...........................................................................................................................................................18-57
How to Record Exceptions ............................................................................................................................18-58
Handling NSF or Rejected Receipts Manually..............................................................................................18-60
Recording a Stopped Payment.......................................................................................................................18-61
Recording a Direct Debit from a Supplier .....................................................................................................18-62
Practice - Enter, Approve, and Pay Invoices .............................................................................................18-63
Entering Reversals.........................................................................................................................................18-66
Reconciling Corrections and Adjustments to Bank Errors ............................................................................18-67
Practice - Reconcile Bank Statements .......................................................................................................18-68
AutoReconciliation Matching........................................................................................................................18-71
Reversal Method............................................................................................................................................18-72
Adjustment Method .......................................................................................................................................18-73
Manual Reconciliation Matching ..................................................................................................................18-74
Agenda...........................................................................................................................................................18-75
Value Date Support .......................................................................................................................................18-76
Value Date Support in Oracle Payables and Oracle Receivables ..................................................................18-77
Value Date Derivation in Applications..........................................................................................................18-78
Selection Hierarchy for Value Date Support .................................................................................................18-79
Business Benefits of Value Date Support......................................................................................................18-80
Agenda...........................................................................................................................................................18-81
Oracle Cash Management Reports ................................................................................................................18-82
Archive/Purge Bank Statements Report ........................................................................................................18-83
AutoReconciliation Execution Report ...........................................................................................................18-84
Bank Statement Detail Report .......................................................................................................................18-85
Bank Statement Summary Report .................................................................................................................18-86
Bank Statements by Document Number Report............................................................................................18-87
GL Reconciliation Report..............................................................................................................................18-88
Cash in Transit Report...................................................................................................................................18-89
Cleared Transactions Report..........................................................................................................................18-90
Transactions Available for Reconciliation Report.........................................................................................18-91
Bank Transaction Codes Listing....................................................................................................................18-92
Summary........................................................................................................................................................18-93
Overview of Credit Management ...................................................................................................................19-1
Overview of Credit Management ..................................................................................................................19-2
Objectives ......................................................................................................................................................19-3

xv
Agenda...........................................................................................................................................................19-4
Set Up Oracle Credit Management................................................................................................................19-5
Define Credit Analysts ..................................................................................................................................19-6
Assign Credit Analyst to Accounts................................................................................................................19-7
Define Lookups .............................................................................................................................................19-8
Define System Options..................................................................................................................................19-9
Define Scoring Models..................................................................................................................................19-10
Assign Automation Rules ..............................................................................................................................19-11
Credit Checklist .............................................................................................................................................19-12
Credit Usage Rule Sets ..................................................................................................................................19-13
Define Credit Hierarchies ..............................................................................................................................19-14
Define Customer Profile Classes ...................................................................................................................19-15
Customer Profile Classes: Credit Profile Tab..............................................................................................19-16
Use Customers-Standard ...............................................................................................................................19-17
Agenda...........................................................................................................................................................19-18
Process Credit Reviews .................................................................................................................................19-19
Initiate a Credit Review.................................................................................................................................19-20
Collecting Credit Data ...................................................................................................................................19-21
Analyzing Credit Data ...................................................................................................................................19-22
Making a Recommendation...........................................................................................................................19-23
Implementing the Recommendation..............................................................................................................19-24
Agenda...........................................................................................................................................................19-25
Credit Management Application Workflow ..................................................................................................19-26
Oracle Approvals Management (AME).........................................................................................................19-27
Agenda...........................................................................................................................................................19-28
Review Credit Management Performance .....................................................................................................19-29
Agenda...........................................................................................................................................................19-30
Define Credit Hierarchies ..............................................................................................................................19-31
Identify a Credit Hierarchy............................................................................................................................19-32
Summary........................................................................................................................................................19-33
11i Order to Cash Fundamentals Supplemental Practices ..........................................................................20-1
11i Order to Cash Fundamentals Supplemental Practices .............................................................................20-2
Objective........................................................................................................................................................20-3
Practice - Instructor Preparation ................................................................................................................20-4
Manage Parties and Customer Accounts .......................................................................................................20-5
Practice - Create a Customer Profile Class ................................................................................................20-6
Solution - Create a Customer Profile Class ...............................................................................................20-8
Practice - Create a Customer using the Standard Data Entry Form ...........................................................20-9
Solution - Create a Customer using the Standard Data Entry Form ..........................................................20-12
Practice - Create a Customer using the Quick Data Entry Form ...............................................................20-15
Solution - Create a Customer using the Quick Data Entry Form...............................................................20-16
Practice - Create a Customer Account Relationship ..................................................................................20-17
Solution - Create a Customer Account Relationship .................................................................................20-18
Practice - Create a User .............................................................................................................................20-21
Solution - Create a User.............................................................................................................................20-23
Practice - Create a Unit of Measure...........................................................................................................20-24
Solution - Create a Unit of Measure ..........................................................................................................20-25
Practice - Create a Location.......................................................................................................................20-26
Solution - Create a Location ......................................................................................................................20-27
Practice - Create an Inventory Organization..............................................................................................20-28
Solution - Create an Inventory Organization .............................................................................................20-30
Practice - Create a Subinventory ...............................................................................................................20-32
Solution - Create a Subinventory...............................................................................................................20-33
Practice - Define Shipping Parameters ......................................................................................................20-34
Solution - Define Shipping Parameters......................................................................................................20-35

xvi
Enter Items.....................................................................................................................................................20-36
Practice - Create an Item............................................................................................................................20-37
Solution - Create an Item...........................................................................................................................20-38
Practice - Create a Material Transaction....................................................................................................20-39
Solution - Create a Material Transaction ...................................................................................................20-41
Practice - Add an Item to a Price List ........................................................................................................20-43
Solution - Add an Item to a Price List .......................................................................................................20-44
Enter Orders...................................................................................................................................................20-45
Practice - Create a Sales Order Header......................................................................................................20-46
Solution - Create a Sales Order Header .....................................................................................................20-48
Practice - Create a Sales Order Line ..........................................................................................................20-49
Solution - Create a Sales Order Line .........................................................................................................20-50
Practice - Create a Split Line and Ship Set ................................................................................................20-51
Solution - Create a Split Line and Ship Set ...............................................................................................20-53
Practice - Schedule an Order .....................................................................................................................20-55
Solution - Schedule an Order.....................................................................................................................20-57
Practice - Book an Order ...........................................................................................................................20-59
Solution - Book an Order...........................................................................................................................20-61
Practice - Copy a Sales Order ....................................................................................................................20-63
Solution - Copy a Sales Order ...................................................................................................................20-65
Managing Orders ...........................................................................................................................................20-68
Practice - Work with the Order Organizer.................................................................................................20-69
Solution - Work with the Order Organizer ................................................................................................20-71
Practice - Update a Sales Order .................................................................................................................20-73
Solution - Update a Sales Order ................................................................................................................20-74
Practice - Perform a Mass Price Change....................................................................................................20-75
Solution - Perform a Mass Price Change...................................................................................................20-76
Practice - Create a Hold Name ..................................................................................................................20-77
Solution - Create a Hold Name..................................................................................................................20-78
Practice - Apply a Hold .............................................................................................................................20-79
Solution - Apply a Hold.............................................................................................................................20-80
Practice - Release a Hold...........................................................................................................................20-81
Solution - Release a Hold ..........................................................................................................................20-82
Practice - Cancel an Order Line.................................................................................................................20-83
Solution - Cancel an Order Line ................................................................................................................20-84
Basic Pricing..................................................................................................................................................20-86
Practice - Create a Price List......................................................................................................................20-87
Solution - Create a Price List.....................................................................................................................20-91
Practice - Copy a Price List .......................................................................................................................20-95
Solution - Copy a Price List.......................................................................................................................20-96
Practice - Update a Price List Manually ....................................................................................................20-97
Solution - Update a Price List Manually....................................................................................................20-99
Practice - Adjust a Price List .....................................................................................................................20-101
Solution - Adjust a Price List.....................................................................................................................20-102
Practice - Add Items to a Price List ...........................................................................................................20-103
Solution - Add Items to a Price List ..........................................................................................................20-105
Practice - Create an Agreement Price List.................................................................................................20-106
Solution - Create an Agreement Price List ................................................................................................20-109
Practice - Create a Discount Modifier List ................................................................................................20-111
Solution - Create a Discount Modifier List................................................................................................20-115
Shipping.........................................................................................................................................................20-119
Practice - Grant Access to your User for Your Role..................................................................................20-120
Solution - Grant Access to your User for Your Role.................................................................................20-121
Practice - Pick Release Sales Orders .........................................................................................................20-122
Solution - Pick Release Sales Orders.........................................................................................................20-124
Practice - Ship Confirm a Delivery............................................................................................................20-126
Solution - Ship Confirm a Delivery...........................................................................................................20-128

xvii
Practice - Define a Pick Slip Grouping Rule .............................................................................................20-130
Solution - Define a Pick Slip Grouping Rule.............................................................................................20-131
Practice - Define a Release Sequence Rule ...............................................................................................20-132
Solution - Define a Release Sequence Rule...............................................................................................20-133
Practice - Define a Release Rule................................................................................................................20-134
Solution - Define a Release Rule...............................................................................................................20-135
Practice - Define a Shipping Role..............................................................................................................20-136
Solution - Define a Shipping Role.............................................................................................................20-137
Practice - Grant Access to a Role ..............................................................................................................20-138
Solution - Grant Access to a Role..............................................................................................................20-139
Process Invoices ............................................................................................................................................20-141
Practice - Create an Invoice .......................................................................................................................20-142
Solution - Create an Invoice ......................................................................................................................20-143
Practice - Copy an Invoice.........................................................................................................................20-144
Solution - Copy an Invoice ........................................................................................................................20-145
Practice - Create a Credit Memo................................................................................................................20-146
Solution - Create a Credit Memo ...............................................................................................................20-147
Practice - Print a Transaction.....................................................................................................................20-148
Solution - Print a Transaction ....................................................................................................................20-149
Manual Receipts ............................................................................................................................................20-150
Practice - Enter a Manual Receipt .............................................................................................................20-151
Solution - Enter a Manual Receipt.............................................................................................................20-152
Practice - Apply a Receipt .........................................................................................................................20-153
Solution - Apply a Receipt ........................................................................................................................20-154
Practice - Use Mass Apply ........................................................................................................................20-155
Solution - Use Mass Apply........................................................................................................................20-156
Tax Accounting Process ................................................................................................................................20-157
Practice - Define a Tax Code.....................................................................................................................20-158
Solution - Define a Tax Code ....................................................................................................................20-159
Appendix A ...................................................................................................................................................20-160
Order Management Setup ..............................................................................................................................20-161
Practice - Define Transaction Types..........................................................................................................20-162
Practice - Define Document Numbers .......................................................................................................20-164
Practice - Define Processing Constraints...................................................................................................20-166
Practice - Process a Drop Ship Order ........................................................................................................20-168
Create Internal Orders ...................................................................................................................................20-174
Practice - Create Internal Orders ...............................................................................................................20-175
Practice - Create and Issue a Quote to Order Management .......................................................................20-178
Pricing ...........................................................................................................................................................20-181
Practice - Create Point and Range Price Break Modifiers .........................................................................20-182
Practice - Enter an Order Using Price Break Modifier ..............................................................................20-184
Practice - Create Tiered (Cascading) Modifiers ........................................................................................20-186
Practice - Enter an Order Using Tiered (Cascading) Modifiers.................................................................20-188
Practice - Resolve Group Modifier Incompatibilities ................................................................................20-190
Practice - Enter an Order Using Incompatibility Resolution .....................................................................20-191
Shipping.........................................................................................................................................................20-194
Practice - Pick Release with Manual Move Orders ...................................................................................20-195
Appendix B....................................................................................................................................................20-199
R11i Key Business Flows..............................................................................................................................20-200
Practice - Full Order to Cash Business Flow .............................................................................................20-201
Summary........................................................................................................................................................20-211

xviii
Preface
Profile
Before You Begin This Course
Before you begin this course, you should have the following qualifications:
• Knowledge of the overall Order Entry to Bank Reconciliation Process
• Ability to navigate Oracle Applications
Prerequisites
• 11i Navigate Oracle Applications
How This Course Is Organized
11i Order to Cash Fundamentals Ed. 2.0 is an instructor-led online course featuring lecture and
hands-on exercises. Online demonstrations and written practice sessions reinforce the concepts
and skills introduced. An additional volume of supplemental practices is available, beyond the
practices and demonstrations found within the course.

xix
Related Publications
Oracle Publications
Title Part Number
Oracle Cash Management User Guide, Release 11i A80839-02
Oracle Receivables User Guide, Release 11i A80838-03
Oracle Order Management User’s Guide A88765-04
Oracle Trading Community Architecture Administration User B10854-01

Guide, Release 11i
Oracle Receivables Tax Manual A80828-01
Oracle Advanced Pricing User’s Guide A90830-04
Oracle Shipping Execution User Guide A77030-05
Oracle Application’s System Administrator’s Guide A96154-03
Additional Publications
• System release bulletins
• Installation and user’s guides
• Read.me files
• Oracle Magazine

xx
Typographic Conventions
Typographic Conventions in Text
Convention Element Example
Bold italic Glossary term (if The algorithm inserts the new key.
there is a glossary)
Caps and Buttons, Click the Executable button.
lowercase check boxes, Select the Can’t Delete Card check box.
triggers, Assign a When-Validate-Item trigger to the ORD block.
windows Open the Master Schedule window.
Courier new, Code output, Code output: debug.set (‘I”, 300);
case sensitive directory names, Directory: bin (DOS), $FMHOME (UNIX)
(default is filenames, Filename: Locate the init.ora file.
lowercase) passwords, Password: User tiger as your password.
pathnames, Pathname: Open c:\my_docs\projects
URLs, URL: Go to http://www.oracle.com
user input,
User input: Enter 300
usernames
Username: Log on as scott
Initial cap Graphics labels Customer address (but Oracle Payables)
(unless the term is a
proper noun)
Italic Emphasized words Do not save changes to the database.
and phrases, For further information, see Oracle7 Server SQL Language
titles of books and Reference Manual.
courses, Enter user_id@us.oracle.com, where user_id is the
variables name of the user.
Quotation Interface elements Select “Include a reusable module component” and click Finish.
marks with long names
that have only This subject is covered in Unit II, Lesson 3, “Working with
initial caps; Objects.”
lesson and chapter
titles in cross-
references
Uppercase SQL column Use the SELECT command to view information stored in the
names, commands, LAST_NAME
functions, schemas, column of the EMP table.
table names
Arrow Menu paths Select File > Save.
Brackets Key names Press [Enter].
Commas Key sequences Press and release keys one at a time:
[Alternate], [F], [D]
Plus signs Key combinations Press and hold these keys simultaneously: [Ctrl]+[Alt]+[Del]

xxi
Typographic Conventions in Code
Convention Element Example
Caps and Oracle Forms When-Validate-Item
lowercase triggers
Lowercase Column names, SELECT last_name
table names FROM s_emp;
Passwords DROP USER scott

IDENTIFIED BY tiger;
PL/SQL objects OG_ACTIVATE_LAYER
(OG_GET_LAYER (‘prod_pie_layer’))
Lowercase Syntax variables CREATE ROLE role

italic
Uppercase SQL commands and SELECT userid
functions FROM emp;
Typographic Conventions in Oracle Application Navigation Paths

This course uses simplified navigation paths, such as the following example, to direct you
through Oracle Applications.
(N) Invoice > Entry > Invoice Batches Summary (M) Query > Find (B) Approve
This simplified path translates to the following:
1. (N) From the Navigator window, select Invoice then Entry then Invoice Batches
Summary.
2. (M) From the menu, select Query then Find.
3. (B) Click the Approve button.
Notations:
(N) = Navigator
(M) = Menu
(T) = Tab
(B) = Button
(I) = Icon
(H) = Hyperlink
(ST) = Sub Tab

xxii
Typographical Conventions in Oracle Application Help System Paths
This course uses a “navigation path” convention to represent actions you perform to find
pertinent information in the Oracle Applications Help System.
The following help navigation path, for example—
(Help) General Ledger > Journals > Enter Journals
—represents the following sequence of actions:
1. In the navigation frame of the help system window, expand the General Ledger entry.
2. Under the General Ledger entry, expand Journals.
3. Under Journals, select Enter Journals.
4. Review the Enter Journals topic that appears in the document frame of the help system
window.

xxiii

xxiv
Order to Cash Lifecycle
Overview
Chapter 1
Order to Cash Lifecycle Overview

Chapter 1 - Page 1

Chapter 1 - Page 2
Objectives
Objectives
After completing this module you should be able to

do the following:
• Describe the overall order to cash process from
Order Entry through Bank Reconciliation
• Discuss the key areas in the Order to Cash Life
Cycle
• Describe the integration between the applications

Chapter 1 - Page 3
Order Management Shipping Execution
Enter Book Pick Ship

Release Confirm
AutoInvoice
Receivables Cash Management
Bank
Invoice Receipt Reconciliation

The ordering process leads to the shipping of goods which continues with invoicing the
customer and concludes with the receipt of cash and reconciling of the bank statement. All
orders do not follow this path. Some orders may not require shipping (services) or receipts
(internal orders).
In Order Management the order is entered which allows for a review of the order information
including: customer, ship-to, bill-to, payment terms, order type, price list, unit price, and
warehouse. Then the order is booked which allows it to proceed through the workflow
process. If it is a shipping item and the quantities are available, it can be processed by shipping
execution.
In Shipping Execution the order is pick released which generates the move order. Once the
item is brought from the sub-Inventory into the staging area it is ready to be placed on a
shipping vehicle. Now you can run the ship confirm process to allow the shipment to
processed.
AutoInvoice is run to bring the order from Order Management to Receivables. In Receivables
you can print the invoice and send it to the customer. You can proceed with collection efforts
until you receive payment and post your receipt.

Chapter 1 - Page 4
In Cash Management the system pulls information from posted receipts and matches them to
the bank statement for reconciliation.

Chapter 1 - Page 5
Order Lifecycle
Order Lifecycle
Transfer Ordering
Accounting
to General
Ledger Scheduling
Ordering
Cash
Management Accounting Shipping
Collecting
Receipts AutoInvoice
to
Receivables
Invoicing
Order Lifecycle
Ordering: Entering the order, pricing the order, booking the order, scheduling (which can
include checking ATP, placing demand, and reserving on-hand Inventory), running pick
release, and shipping the order.
Collecting: Running AutoInvoice, generating invoices, collection efforts, and receipt of
payments.
Accounting: Receipt information which is available to be used by Cash Management to
reconcile the bank statement and transferring accounting information to the General Ledger.

Chapter 1 - Page 6
Overview of Application Integration

Customer CRM
Customers Orders
Master Suite
Reserve Order Management
Demand
Pricing
Item
Information
Inventory
Shipping
Invoices
Accounting
Accounting Receipts
Cash
General Ledger Receivables Management

Order Management receives customer information from the Customer Master which can
supply default information into the sales order.
Inventory supplies item information for the sales order and receives reservation and demand
information.
Pricing supplies information for the list price and any modifiers to apply against the list price.
Orders may come in directly from the CRM Suite of applications.
Once the order has been booked, information can flow to the Shipping application if it is a
shippable item.
Order management then sends information to Receivables through AutoInvoice.
Now it can be printed and sent to the customer for payment.
Finally the accounting information is sent to the General Ledger. The receipt information can
also be accessed by Cash Management in order to reconcile the bank statements.

Chapter 1 - Page 7
Order Management Process
Import from
Enter order Copy an *CRM or other
or return online order or return EDI systems
Order Import
*Customer Relationship
Management includes:
iService, iStore,
Teleservice, Telesales,
Sales Online, iSupport

Orders can be created from a number of different sources. You can create new orders by
entering the information or by copying existing orders. You can also bring orders in from EDI,
CRM, and other interfaces.

Chapter 1 - Page 8
Scheduling Process
Scheduling Process
Checking
Available to Promise (ATP) Placing demand
Shipping the order

Reserving
on-hand Running
inventory pick release

Chapter 1 - Page 9
Viewing and Managing Orders
Viewing and Managing Orders
Orders
View
Find in the Order Organizer

or
Query in the Sales Orders form
Order Lines
Managing Orders and Lines

Once orders are in the system you can view them from different sources. Then you can
manage the orders and order lines by applying holds, removing holds, entering individual or
mass changes, creating copies, or making cancellations.

Chapter 1 - Page 10
Pricing Process
Pricing Process
Entered Price list or Modifiers Unit price

order line agreement
Pricing Process
The pricing engine supplies the initial unit price from a price list or customer agreement. It
will also apply any modifiers for which the order qualifies. Modifiers can either raise or lower
the initial unit price. They can be set to be applied manually or automatically. They can also
be set to only be applied after certain events like saving, booking, or shipping.

Chapter 1 - Page 11
Shipping Process
Shipping Process
Creates Details
Move Order Move Order
Run Pick Release Move Order Inventory
Transact Move Order
Material
Load Truck Dropped
Ship Confirm Staging Sub-Inventory Pick Confirm
Shipping Process
When the item is ready, it is pick released.
• This creates the move order which can automatically detail where to get the item.
• The items are brought from Inventory to the staging area.
• The pick confirmation process in the system can automatically occur when you run pick
release.
• Once the items are loaded on the truck from the staging area you can run the ship confirm
process.
• When you run the ship confirm process the system can decrement Inventory and update
the sales order.
• The information can then be transferred through AutoInvoice to Receivables for
invoicing the customer.

Chapter 1 - Page 12
AutoInvoice Process
AutoInvoice Process
Invoice Data Interface Tables Invoices
Corrected Records Interface Exceptions
AutoInvoice Process
Invoice data can be sourced from a number of locations for example: Order Management,
Contracts or legacy systems.
When the data is brought into the Interface Tables, errors are pushed to the Interface
Exceptions Table to be corrected.
Correct data gets pushed into Receivables as invoices.
AutoInvoice Exceptions: Errors are sent to the Interface Exceptions Table where they can be
corrected. Once the lines are corrected, AutoInvoice can be rerun and invoices created from
the corrected lines.

Chapter 1 - Page 13
Receivables Process
Receivables Process
Imported Invoices Review and Print Invoices

and Manually Correct Data
Created Invoices
Post Receipts Collect Payments Send Invoices

Chapter 1 - Page 14
Cash Management Process
Receive Bank Load and Verify Perform

Statement Bank Statement Reconciliation
Post to Enter Manual Review Results

General Ledger Entries

The final step of the process is to post entries to the General Ledger. The entries travel from
Cash Management to Receivables and then to the General Ledger.

Chapter 1 - Page 15
Summary
Summary
After completing this module you should be able to:

• Describe the overall order to cash process from
Order Entry through Bank Reconciliation
• Discuss the key areas in the Order to Cash Life
Cycle
• Describe the integration between the applications

Chapter 1 - Page 16
Overview of Oracle Order
Management Process
Chapter 2
Overview of Oracle Order Management Process

Chapter 2 - Page 1
Overview of Oracle

Chapter 2 - Page 2
Objectives
Objectives

do the following:
• Explain where Order Management is positioned
within the Order to Cash Lifecycle
• Describe the overall Order Management process
• Discuss the key areas in the Order Management
process

Chapter 2 - Page 3
Overview of Order Management in the Order to Cash Lifecycle
Overview of Order Management in the

Order Management
Inventory Order Import
Orders
Pricing Shipping
Receivables
Overview of Order Management in the Order to Cash Process

Order Management receives detailed item information from the Inventory application and price
list information from the Pricing application. Orders and returns can be entered manually or
imported through an EDI, CRM, or external source. Once in the system the order is ready to
be pick released and shipped, if needed by the Shipping application. It can then proceed
through the AutoInvoice program into the Oracle Receivables application to be invoiced. All
of the accounting information is transferred to the General Ledger by the Inventory and
Receivables applications.

Chapter 2 - Page 4
Overview of Order Management Integration
Overview of Order Management

Integration
Customer Orders
Information
Customers CRM Suite
Reserve
Demand
Item Price
Information List
Inventory Order Management Pricing
Invoices Shipping
Receivables Shipping Execution
Overview of Order Management Integration

Order Management receives customer information from the customer master, item information
from inventory, the price list from pricing, and may receive orders from many of the
applications in the CRM Suite.
Order Management sends reservation and demand information to Inventory, shipping
information is pulled into Shipping Execution, and invoices are created in Receivables by
running the AutoInvoice program.

Chapter 2 - Page 5
Overview of the Order Management Process
Overview of the
Enter Orders and Orders Order Import

Returns and EDI
Copy Orders View Orders Manage Orders
Overview of the Order Management Process

Orders can be created from a number of different sources. You can create new orders by
entering the information or by copying existing orders. You can also bring orders in from EDI,
CRM, and other interfaces. From Customer Relationship Management (CRM) for example,
you could bring orders from iService, iStore, iSupport, Teleservice, Telesales, and Sales
Online.
Once orders are in the system you can manage the orders and order lines by creating copies,
entering individual or mass changes, applying holds, removing holds, or performing
cancellations.

Chapter 2 - Page 6
Overview of Customer Relationships
Parent Parent Parent Child
Reciprocal Nonreciprocal
A B
A C
B C

Order Management Super User, Vision Operations (USA)
(N) > Customers > Quick or Standard > (T) Relationships
Relationships exist between two customers and can be reciprocal or nonreciprocal. They allow
the following:
• Sharing of pricing entitlements (Agreements and Commitments)
• Consolidation of business addresses (Selection of a related customer’s ship-to address
during order entry)
• Payment of related invoices
Relationships are not transitive; If customer A is related to B and B is related to C, A and C are
not related. You must build the A to C relationship separately.

Chapter 2 - Page 7
Overview of Inventory Organizations
Manufacturing Warehouse Branch

Facility Office
Receiving Shipping

Organizations can be established for a number of purposes. For example, you could set up
manufacturing facilities, warehouses, distribution centers, and branch offices.
The organization must be classified as an inventory organization in order to do transactions,
planning, and receiving. You can set as many organizations as needed and limit the
organization access by responsibility. A user can change organizations at any time from the
Change Organization window.

Chapter 2 - Page 8
Overview of Inventory Items
An item can be anything you make, sell, or purchase.

It can include various stages of products, such as:
final products, supplies for products, or components
for products.
Final Product Components Supplies

Inventory items are used in Order Management when placing orders. The item has attributes
which control how it is used. For example, one of the Order Management attributes that can be
set is if the item is Orderable. If the item is not set correctly it can not be ordered.
Items can be set in one or more than one organization. Normally, you set the item in a master
organization and assign it to other organizations that will use it.

Chapter 2 - Page 9
Overview of Order Entry
Enter Order Copy an EDI Import from

and Returns order other systems
Order
Import
Order

• Enter an order manually using the Sales Order forms.
• Create a new order by copying an open, closed or canceled order. Orders created from
the copy function can be modified as needed.
• Use Order Import to load orders that come from your EDI transactions, external systems
or other Oracle applications such as Internal orders from Purchasing or Material Charge
Lines from Service.

Chapter 2 - Page 10
Overview of Managing Orders
Orders
View
Find in the Order Organizer

or
Query in the Sales Orders form
Order Lines

Once orders are in the system you can view them from different sources. Then you can
manage the orders and order lines by applying holds, removing holds, entering individual or
mass changes, creating copies, or making cancellations.

Chapter 2 - Page 11
Summary
Summary
In this module you should have learned how to:

• Explain where Order Management is positioned
within the Order to Cash Lifecycle
• Describe the overall Order Management process
• Discuss the key areas in the Order Management
process

Chapter 2 - Page 12
Overview of Pricing
Chapter 3
Overview of Pricing
Chapter 3 - Page 1
Overview of Pricing
Overview of Pricing
Overview of Pricing
Chapter 3 - Page 2
Objectives
Objectives

do the following:
• Explain where Order Pricing is positioned within
the Order to Cash Life Cycle
• Describe the overall Order Pricing process
• Discuss the key areas in the Pricing process
Overview of Pricing
Chapter 3 - Page 3

Transfer Ordering/Pricing
Accounting
to General
Scheduling
Ledger
Ordering
Cash
Management Shipping
Accounting
Collecting
to
Receivables
Invoicing
Overview of Pricing
Chapter 3 - Page 4
Overview of Pricing in the Order to Cash Process
Overview of Pricing in the

Order to Cash Process
Order Pricing
Manually Entered
Orders
Pricing Order
Management
API or Imported Orders
Overview of Pricing in the Order to Cash Process

Pricing sends customer list price, agreement price, and modifier information to orders being
entered manually in Order Management and to orders being entered in other Oracle
applications which can then be either imported or can use an API via Order Capture into Order
Management. Orders can proceed through the Order to Cash flow by being shipped, run
through the AutoInvoice program to Receivables and finally the accounting information can be
transferred to the General Ledger.
Overview of Pricing
Chapter 3 - Page 5
Overview of Pricing Integration
CRM Pricing ERP Suite

Suite
e-Business
Suite

The Following products use Oracle Pricing setup and engine processing:
• Order Management
• Order Capture/Quoting
• Marketing
• Core Contracts
• Service Contracts
• Service Core (Via Order Management)
• Trade Management
• Sales for Communications
• Service for Communications
• Financial Services
The following products use Oracle Pricing engine processing only:
• iStore
• TeleSales
Overview of Pricing
Chapter 3 - Page 6
• Sales Online
Overview of Pricing
Chapter 3 - Page 7
Overview of the Pricing Concept
What is being Priced?
Who is asking for the Price?

• Qualifiers
How should the Price be Adjusted?

• Modifiers

The pricing engine determines the selling price for products and services. It provides the final
selling price after fetching the initial price off the price list or customer agreement. It does this
by determining if this order qualifies for any increases or decreases from the initial price.
These kinds of adjustments are called modifiers.
Overview of Pricing
Chapter 3 - Page 8
Overview of the Pricing Engine
Entered Price list or Modifiers Unit price

order line agreement

The pricing engine receives a pricing request which it processes and supplies the base (initial)
price from the price list or customer agreement. It then applies any modifiers, calculates the
selling price, and returns the result to the calling application.
Overview of Pricing
Chapter 3 - Page 9
Overview of Price Lists
You can establish a new price list by

manually entering items or by copying
an existing price list.
Setup the
price list
After the price list is established you

can maintain the price list by adding
items or modify the list price of the lines
Modify the by completing an adjustment.
price list

You establish as many price lists as needed by entering the information or copying existing
price lists. The price lists can be easily modified to include new items or groups of items. The
list price of the price list lines can be increased or decreased by either an amount or a
percentage.
Overview of Pricing
Chapter 3 - Page 10
Overview of Qualifiers and Modifiers
Qualifiers can be applied to Modifier

Lists and Modifier Lines.
Modifiers are used to adjust the base

price on an order and can be used on
individual lines or on the overall order.

Qualifiers can assist in establishing what the base price is for an item and if an order will
receive increases or decreases to the base price.
Modifiers can be applied automatically or manually and can be overrideable.
Overview of Pricing
Chapter 3 - Page 11
Overview of Basic vs. Advanced Pricing
Basic pricing functionality is included in

Order Management and offers a variety
of standard options for pricing orders.
Pricing
Oracle Advanced Pricing is sold

separately and offers functions to
perform advanced options for pricing
Advanced orders.
Pricing

Oracle offers two levels of pricing functionality: Basic, and the fully licensed product,
Advanced Pricing. While each level of functionality shares some similarities, the licensed
Advanced Pricing application extends the ability to manipulate pricing.
Price Lists
The creation of price lists within both levels carries many of the same elements. Both are able
to add items to, and copy price lists. However, as one implements Advanced Pricing, the
ability to use Qualifiers, Pricing Attributes and Secondary Price Lists becomes extended from
only allowing the default or one context element in Basic, to an unlimited number of values
being available. Formulas are another area of distinction between the two levels, both allow
Static Formulas, while only Advanced Pricing allows the use of Dynamic Formulas.
Agreements
The use of Agreements is the same for both basic and Advanced Pricing. They are both able to
identify customer items, create price lists, use versioning and price breaks.
Formulas
Overview of Pricing
Chapter 3 - Page 12
As with other areas of pricing functionality, Advanced Pricing extends the ability to adjust
pricing with formulas to include the item category associated with the item on the order line,
and using an unlimited number of pricing attribute contexts and factors.
Modifiers
While both basic and Advanced Pricing have the ability to execute Discounts, Surcharges,
Freight Charges and Point based Price Breaks, Advanced Pricing extends this functionality
greatly. Advanced Pricing also allows price changes via Coupons, Terms Substitution,
Promotions, Item Upgrades and Other Items. Additionally, Advanced Pricing allows you to
implement adjustment functionality that will change the base price used for the adjustment;
affect the timing of when the adjusting activity will occur; and enable you to define rules
effecting which adjustments may be used at the same time.
For further information on the Advanced Pricing functionality, please refer to the Advanced
Topic: Advanced Pricing.
Overview of Pricing
Chapter 3 - Page 13
Summary
Summary

• Explain where Pricing is positioned within the
Order to Cash Life Cycle
• Describe the overall Pricing process
• Discuss the key areas in the Pricing process
Overview of Pricing
Chapter 3 - Page 14
Overview of Oracle Shipping
Execution
Chapter 4
Overview of Oracle Shipping Execution

Chapter 4 - Page 1

Chapter 4 - Page 2
Objectives
Objectives

do the following:
• Explain where Shipping Execution is positioned
within the Order to Cash Life Cycle
• Describe the overall Shipping process
• Discuss the key areas in the Shipping process

Chapter 4 - Page 3

Accounting
to General
Scheduling
Ledger
Ordering
Cash
Management
Accounting Shipping
Collecting
to
Receivables
Invoicing

Chapter 4 - Page 4
Overview of Shipping in the Order to Cash Process
Overview of Shipping in the

Shipping
Order Picking Staging

Management
Inventory and Order Management Shipping
Overview of Shipping in the Order to Cash Process

Shipping runs pick release for booked orders from Order Management. The picked orders are
taken from inventory and are dropped in the staging area prior to being shipped. When ship
confirm is processed an API runs to decrement inventory and a separate API runs to update the
order. After the sales order line is updated, it can proceed through AutoInvoice to Receivables.

Chapter 4 - Page 5
Overview of the Shipping Process

Creates Details
Move Order Move Order
Run Pick Release Move Order Inventory
Transact Move Order
Material
Load Truck Dropped
Ship Confirm Staging Sub-inventory Pick Confirm

When the order line is ready it is pick released. This creates the move order which can
automatically detail where to get the item. The items are brought from inventory to the staging
area. The pick confirmation process in the system can automatically occur when you run pick
release. Once the items are loaded on the truck from the staging area you can run the ship
confirm process. When you run the ship confirm process the system can decrement inventory
and update the sales order. The information can then be transferred through AutoInvoice to
Receivables for invoicing the customer.

Chapter 4 - Page 6
Overview of Shipping Execution Integration
Overview of Shipping
Execution Integration
Booked
Orders
Decrement Update
Inventory Orders
Inventory Shipping Order
Execution Management
Overview of Shipping Execution Integration

Shipping runs pick release on booked sales order lines from Order Management. After
processing ship confirm, it sends information to decrement inventory and update the sales
order line information. In addition, this inventory related activity will trigger the creation of
the Cost of Goods Sold account (COGS). Order Management sends the order line through
AutoInvoice to Receivables. Inventory and Receivables send all of the accounting information
to the General Ledger.

Chapter 4 - Page 7
Overview of Shipping Concepts
Trips Stops
Deliveries Delivery Legs

A trip is carrier specific and includes at least two stops – a pick-up and a drop-off.
A stop is a point along the route and can consist of a pick-up, drop-off, or both.
A delivery is a consolidation of sales order lines based on at least the customer, ship from
location, and ultimate ship to location.
A delivery leg is represented by a bill of lading and consists of at least two stops and one leg or
trip.

Chapter 4 - Page 8
Overview of Pick Release
Which Orders to fill? 3 2 1 Release Rules
In what order to fill? Release Sequence

3 1 2
Rules
How to group on the Pick Slip Grouping

Pick Slip? Rules

Release Rules determine which orders meet the criteria to be pick released.
Release Sequence Rules determine in what order available inventory will be allocated to the
picked order lines.
Pick Slip Grouping Rules determine how released lines will be grouped on to pick slips.

Chapter 4 - Page 9
Overview of Pick Confirm and Staging Sub-inventory
Overview of Pick Confirm

and Staging Sub-inventory
Source Transfer Staging

Location Sub-inventory
Overview of Pick Confirm and Staging Sub-inventory

Pick release creates a move order to transfer inventory from the source location to the staging
area. The actual movement from the source location to the staging sub-inventory is called pick
confirmation.
Note: Pick confirm can be completed manually or automatically.

Chapter 4 - Page 10
Overview of Delivery Management
Sales order lines that have been

released for shipping are called
delivery lines and can be used to
create a delivery.
Deliveries can be created manually or

automatically and are required to
perform ship confirmation.

Deliveries can be created automatically during pick release by selecting the check box –
Autocreate Deliveries in the Release Sales Orders window. They can also be automatically
created in the Shipping Transactions form by selecting the Actions button and choosing
Autocreate Deliveries. Otherwise, they can be created manually from the Shipping
Transactions form.

Chapter 4 - Page 11
Overview of Ship Confirmation
Staging Load Ship

Sub-inventory Truck Confirm

The items are loaded on the truck from the staging area you can run the ship confirm process.
When you run the ship confirm process the system can decrement inventory and update the
sales order. The information can then be transferred through AutoInvoice to Receivables for
invoicing the customer. Finally, accounting information can be sent to the General Ledger
from Inventory and Receivables.

Chapter 4 - Page 12
Summary
Summary

• Explain where Shipping Execution is positioned
within the Order to Cash Life Cycle
• Describe the overall Shipping process
• Discuss the key areas in the Shipping process

Chapter 4 - Page 13

Chapter 4 - Page 14
Overview of Oracle
Receivables Process
Chapter 5
Overview of Oracle Receivables Process

Chapter 5 - Page 1
Overview of Oracle
Receivables Process

Chapter 5 - Page 2
Objectives
Objectives

do the following:
• Explain where the Receivables processing is
positioned within the Order to Cash Life Cycle
• Describe the overall Receivables Process
• Discuss the key areas in the Receivables Process

Chapter 5 - Page 3

Accounting
to General
Scheduling
Ledger
Ordering
Cash
Management Shipping
Accounting
Collecting
to
Receivables
Invoicing

Chapter 5 - Page 4
Overview of Receivables in the Order to Cash Process
Overview of Receivables in the

Receivables
Imported through Transactions Manual Creation

AutoInvoice
Cash Transfer to
Receipt
Management General Ledger
Overview of Receivables in the Order to Cash Process

Receivables can generate transactions from imported data brought through the AutoInvoice
program from Oracle Order Management, Oracle Service, Oracle Projects, Leasing, and legacy
systems. Transactions may also be created manually in the Receivables application. After
being completed the transaction information is ready to be transferred to the General Ledger.
Receipts that have been entered and remitted are available to be used by Cash Management to
reconcile bank statements. Receipts are available to be transferred to the General Ledger after
they are entered and saved.

Chapter 5 - Page 5
Overview of the Receivables Process
Transactions Review and Print and Send

Correct Data Invoices
Transfer to Enter Receipts Collect Payments

General Ledger

The transactions are created either by importing them or by manually creating them. The
transactions can then be reviewed and corrected before being completed. Once completed, they
are ready to be printed and sent to the customer for payment. However, there is a system option
Allow Changes to Printed Transactions, which will allow the correction of printed transactions
as well. Then the transactions go through the collection process. Once collected, the receipts
are enter and applied. The transactions can be transferred to the General Ledger once they are
completed. Finally, the receipts can be transferred once they are completely entered.

Chapter 5 - Page 6
Overview of Receivables Integration
Item Orders &

Information Shipment
Order
Inventory
Management
Orders Contracts
Legacy Receivables Service
Accounting Receipts
General Cash
Ledger Management
Leasing

Inventory item information is available to Receivables for any manually created transactions,
although no inventory is decremented from any transactions created or modified in
Receivables. Transactions can be created by importing data from Order Management (which
may include orders from the CRM Suite of products), other applications and legacy systems.
Receivables sends accounting information to the General Ledger. Receipts are available for
bank reconciliation in Cash Management.
Once collected, the receipts are entered and applied. The transactions can be transferred to the
general ledger once they are completed. The receipts can be transferred once they are entered
and saved.

Chapter 5 - Page 7
Overview of the Transaction Process
Standard Transaction
Copy
Review and make corrections
Valid Invalid
transaction transaction
Complete, print and send to customer Void Delete
Enter receipt Interface to

General Ledger

Transactions can be copied in Receivables. A standard transaction would follow the path of
being reviewed, corrected, completed, printed, and sent to the customer. A receipt would be
entered against the transaction. The accounting information would be transferred to the General
Ledger after the transaction was completed.

Chapter 5 - Page 8
Overview of Other Invoice Operations
Original Invoice Invoice with Rules
Accounting Invoice
Invoice Copies Installments
Rules Rules

You can use an invoice to make copies. This process can be applied for invoices which will be
the same over a period of time.
Invoices can be created with or without rules. Invoices with rules can be imported or manually
created. The accounting rule indicates when revenue recognition should take place. The
invoicing rule indicates whether to bill in advance (the first period) or to bill in arrears (the last
period).
You can let your customers make invoice payments in multiple installments by using a split
payment term. When you assign a split payment term to an invoice, Receivables automatically
creates the payment schedules based on the invoice date and the payment terms that you
define. For example, your split payment term might specify that 40 percent of the invoice is
due in 30 days after the invoice date with the remainder due in 60 days.

Chapter 5 - Page 9
Overview of Adjustments
Adjustment Approval limit Validation Approved

entry $500 process or Pending
Adjustments are entered into the system and proceed through a validation process before being
approved. Adjustments can increase or decrease the remaining balance. Each user can have a
different approval limit. If the adjustment is within the approval limit it is automatically
approved. If it exceeds the approval limit it is placed in a pending status until approved by a
user with the appropriate approval limit.
Manual adjustments are created against one transaction. You select the transaction you want to
be adjusted.
Automatic adjustments can be made against a group of transactions. You set criteria options to
limit which transactions are selected by the system to be adjusted.

Chapter 5 - Page 10
Overview of Credit Memos
Enter
Update
Credit memos
Review
Credit Transactions
Invoices Debit memos Commitments

You use the Credit Transactions window to enter, update, and review credit memos against
specific invoices, debit memos, or commitments.
You create credit memos to reduce the balance due for a transaction. When you credit a
transaction, Receivables creates the appropriate accounting entries and reverses any sales credit
assigned to your salespeople.
Receivables lets you credit an entire invoice or specific invoice lines.
You can also credit freight for an entire invoice or only for specific invoice lines. You can
delete an incomplete credit memo if the system option Allow Invoice Deletion is set to Yes.
A transaction must be complete before you can create a credit memo against it.
Note: The ’Line’ fields show amounts without tax, even if the transaction you are crediting is
tax inclusive. These include the Amount, Original, and Balance Due fields.

Chapter 5 - Page 11
Overview of the AutoInvoice Process
Invoice Data Interface Tables Invoices
Records are corrected

in the Interface Tables
Interface Exceptions displays errors only

Invoice data can be sourced from a number of locations for example: Order Management,
Contracts, and legacy systems.
When the data is brought into the interface tables, error messages are displayed in the interface
exceptions table.
Correct data gets pushed into Receivables as invoices.
AutoInvoice Exceptions: Errors are sent to the interface exceptions table where they can be
corrected. Once corrected, they can be processed into invoices.

Chapter 5 - Page 12
Overview of Receipts and Remittances
Enter Receipts and Apply to invoice or Update customer

Remittances customer account balance
Transfer to Reverse or Reapply Reconcile

General Ledger

Receipts can be entered in one of three ways:
• Manual: Which includes cash and miscellaneous receipts.
• QuickCash: Which includes cash and AutoLockbox.
• Automatic: Which includes credit cards, bills of exchange, direct debits, and ACH bank
account transfers.
Remittances are a group of receipts remitted to the same bank and bank account, similar to
bank deposit tickets.
Receipts that are applied to an invoice or customer account can be reversed or reapplied at any
time as long as they have not been purged from the system.
Note: Once entered and saved the receipt information can be transferred to the General Ledger.
They do not have to be reconciled or applied to an invoice.

Chapter 5 - Page 13
Overview of Collections
Identify past Contact customer Record activity

due items
Record Apply Resolve Record

bad debt adjustments disputed items receipts
Identify past due items by reviewing information online and printing collections reports.
Contact the customer by sending statements, dunning letters or by a telephone call. Record the
customer contact activity and resolve any disputed items. Apply adjustments and record bad
debt.

Chapter 5 - Page 14
Overview of Tax
Overview of Tax
Oracle provides ways to set up the tax engine:

• Sales tax or VAT tax
• Various tax codes and rates
• Exemptions and exceptions
• Tax groups
• Deferred tax
• Tax reporting
Overview of Tax
Oracle provides the ability to tailor the tax engine to the specific needs of your business.
Receivables is the application where final taxing occurs, all other applications that use the tax
tables supply an estimated tax.

Chapter 5 - Page 15
Summary
Summary

• Explain where the Receivables processing is
positioned within the Order to Cash Life Cycle
• Describe the overall Receivables Process
• Discuss the key areas in the Receivables Process

Chapter 5 - Page 16
Overview of Oracle Cash
Management
Chapter 6
Overview of Oracle Cash Management

Chapter 6 - Page 1

Chapter 6 - Page 2
Objectives
Objectives
After completing this module, you should be able to do

the following:
• Explain the integration of Cash Management in the
Order to Cash eBusiness flow
• Describe Bank Reconciliation
• Understand Cash Forecasting

Chapter 6 - Page 3
Agenda
Agenda
• Explaining the integration of Cash Management in

the Order to Cash eBusiness flow
• Describing Bank Reconciliation
• Understanding Cash Forecasting

Chapter 6 - Page 4
Order Management Shipping Execution
Enter Book Pick Ship

Release Confirm
Autoinvoice
Receivables Cash
Management
Bank
Invoice Receipt Reconciliation

The Order to Cash Lifecycle begins with the shipping of goods, continues with invoicing the
customer, and concludes with the receipt of cash and reconciling of the bank statement.
In Cash Management, the system pulls information from posted receipts and matches them to
the bank statement for reconciliation.

Chapter 6 - Page 5
Order Lifecycle
Order Lifecycle
Transfer Ordering
Accounting
to General
Ledger Scheduling
Ordering
Receipts
Available to
Cash Accounting Shipping
Management
Collecting
to
Receivables
Invoicing
Order Lifecycle
The following processes are involved in the Order Lifecycle:
• Ordering: Entering the order, pricing the order, booking the order, scheduling (which can
include checking ATP, placing demand, and reserving on-hand inventory), running pick
release, and shipping the order.
• Collecting: Running Autoinvoice, generating invoices, collection efforts, and receipt of
payment.
• Accounting:
- Receipt information is available to be used by Cash Management for reconciling the
bank statement.
- Accounting information from Receivables is transferred to the General Ledger.
- This accounting information contains reconciliation entries from Cash
Management.

Chapter 6 - Page 6
Cash Management Integration
Banks
Receipts Payments
Reconcile Reconcile
Misc Receipts
Cash Payables
Receivables Management
Journal Entries Journal Entries

General Ledger

Cash Management integrates with Oracle Receivables, Payables, and General Ledger.
• Banks: Bank setup is done in either Receivables or Payables. Only the Bank Codes used
by Cash Management in the reconciliation process can be added to previously defined
banks in Cash Management.
• Receivables: Receipts are available to Cash Management for reconciliation and clearing.
Miscellaneous receipts can be created in Receivables from Cash Management to record
bank charges or interest.
• Payables: Payments are available to Cash Management for reconciliation and clearing.
• General Ledger: Journal entries and cash account balances are available to Cash
Management for reconciliation. Cash Management does not send entries directly to the
General Ledger. The accounting entries are sent through Payables and Receivables.
Note: Cash Management also integrates with Payroll to reconcile payroll payments. For more
information, see the 11i Oracle Cash Management User Guide.

Chapter 6 - Page 7
Agenda
Agenda


Chapter 6 - Page 8
Functions with Receivables
NSF
Clear and Reverse receipts Bank charges

reconcile receipts and interest
Create receipts Create Miscellaneous

Receipts

Cash Management performs the following functions with Oracle Receivables:
• Clear and reconcile receipts: Receipts are made available to Cash Management to
reconcile with bank statement entries.
• Reverse receipts: Receipts that are returned NSF or Stop Payment are reversed and Debit
Memos can be created from Cash Management.
• Create Oracle Receivables receipts: Receipts that are missing from Receivables can be
entered using a link from Cash Management.
• Create miscellaneous transactions for bank-initiated transactions: Miscellaneous Receipts
can be created in Receivables using a link from Cash Management for both positive and
negative amounts.

Chapter 6 - Page 9
Reconciliation Process
Receive bank Load and verify Perform

statement bank statement reconciliation
Create journal entries and post to

General Ledger Review results
The diagram proves an overview of the Cash Management process, from entering bank
statements to posting transaction to the General Ledger. There are two major process steps
needed to reconcile bank statements.
• Load bank statements.
• Reconcile bank statements.
Both steps can be done automatically or manually.

Chapter 6 - Page 10
Load Bank Statements
Bank Statements
Header
Manually enter
Bank
Statement
SQL* Tables
Loader
Import
Bank file program
Bank Lines
Statement
Open Interface

Bank files can be loaded in the Bank Statement Tables in two ways:
• To import bank statements automatically, use a SQL*Loader script against the bank file
to populate the Bank Statement Open Interface. Then import the bank statement
information using the Bank Statement Import Program.
• To enter a bank statement manually, enter the bank statement header information and the
transaction lines in the Bank Statement Form.

Chapter 6 - Page 11
Bank Reconciliation Overview
Run Review Identify reconciliation

AutoReconciliation AutoReconciliation errors
Program Execution Report
Reconcile manually Correct errors and run

(if necessary) AutoReconciliation
Program

After importing or entering the bank statements:
• Run the AutoReconciliation Program to automatically reconcile the bank transactions to
the Receivables Receipts.
• Review the Auto Reconciliation Execution Report.
• Identify and correct errors.
• Rerun the AutoReconciliation Program.
• Perform manual reconciliation, if necessary.
Note: The Bank Statement Import and the AutoReconciliation Programs can be run together to
perform both tasks.

Chapter 6 - Page 12
Agenda
Agenda


Chapter 6 - Page 13
Cash Forecasting Functions
Reusable Projected Cash Open

Templates Activity Dates Interface
Any Currency Export

Cash Forecasting is a planning tool that helps you anticipate the flow of cash in and out of your
business, allowing you to project your cash needs and evaluate your company’ liquidity
position. With Oracle Cash Management you can perform the following forecasting functions:
• Define reusable forecast templates.
• Determine projected cash activity dates based on specifications defined in the forecast.
• Use an open interface to include external forecast sources in the forecast.
• Forecast for any currency.
• Export forecast to a spreadsheet application.

Chapter 6 - Page 14
Steps in Cash Forecasting
1. Define a forecast template.
2. Select the relevant source type or parameters.
3. Submit the forecast.

Cash Forecasting uses a template which contains cash forecast specifications and includes
sources, time periods, and other parameters.
When the forecast is submitted, Cash Management collects the necessary source data and
summarized the information as cash forecast amounts, based on the forecast period
specifications. The forecast data is then available for update, inquiry, or reporting purposes or
for export to any spreadsheet application.

Chapter 6 - Page 15
Cash Forecast Template
A cash forecast template is a matrix that is similar to a

spreadsheet. Each row defines the source of the cash
flow, and each column defines the forecast period in
general ledger periods or days.
Forecast Period
Sources

A forecast template contains cash forecast specifications. Templates determine the presentation
of sources and forecast periods. Templates also include Name and Description, Forecast period
types, either General Ledger periods or days and source type.

Chapter 6 - Page 16
Cash Forecasting Sources

Cash Outflow Cash Inflow
Sources Sources
Payables Receivables
Order
Purchasing Management
General
Payroll Ledger
General Cash Treasury

Ledger forecast
Projects
Projects
Sales

Cash inflow information is accessible to the cash forecast process in Cash Management from
the following Oracle subledgers:
• Payables: Supplier Invoices and Payments, Expense Reports.
• Purchasing: Purchase Orders and Requisitions.
• Receivables: Customer Invoices and Receipts.
• Payroll: Payroll Expense.
• General Ledger: GL Cash Position.
• Projects: Billing Events, Inflow and Outflow Budgets, Transactions.
• Sales: Opportunities (Leads).
• Treasury: Transactions.
• Order Management: Sales Orders.
Note: User Defined Inflows and Outflows are also available.

Chapter 6 - Page 17
Summary
Summary
In this module, you should have learned how to:

• Explain the integration of Cash Management in the
Order to Cash eBusiness flow
• Describe Bank Reconciliation
• Understand Cash Forecasting

Chapter 6 - Page 18
Manage Parties and
Customer Accounts
Chapter 7
Manage Parties and Customer Accounts

Chapter 7 - Page 1
Manage Parties and

Customer Accounts

Chapter 7 - Page 2
Objectives
Objectives
After completing this course, you should be able to do
the following:
• Define the features enabling you to enter and
maintain party and customer account information
• Create profile classes and assign them to
customer accounts
• Create and maintain party and customer account
information
• Enable customer account relationships
• Merge parties and customer accounts
• View party and customer account information
• Define setup options
• Define TCA party paying relationships

Chapter 7 - Page 3
Agenda
Agenda
• Describing Party Model and Features

• Using Profile Classes
• Entering Party Information
• Defining Customer Account Relationships
• Merging Parties and Customer Accounts
• Reviewing Information
• Defining setup options
• Defining TCA party paying relationships

Chapter 7 - Page 4
Party Model Overview
Receivables Order Management Projects CRM
Customer Party Party

forms interface merge
Party
Master
Party Model Tables

The party model flows through the entire e-Business Suite. There is just one record to
represent both a prospect and a customer. The entity itself is recorded, such as a person or an
organization. However, customer terms are established, that record represents a prospect. Once
customer terms are recorded, that same record now represents the entity as your customer. So,
there are no separate lists to maintain and reconcile. In the Oracle e-Business Suite, there is
one record to represent Company ABC throughout its full life-cycle.
Each application uses different features of the party model. For instance, the Customer
Relationship Management Suite (CRM) applications use more details about party relationships
and new prospects. The Receivables and Order Management applications use more of the
customer accounts including payment terms, billing, and shipping information.
The party model contains a unique set of information about a person, organization, or
relationship. The tables store information such as parties, addresses, and bank accounts.
You are able to interact with the party model through the following:
• Customer forms: Online entry and query of party and customer account information.
• Party interface: Batch load of party information.

Chapter 7 - Page 5
• Party and customer account merge: Merge parties and customer accounts. This
functionality is used after entering a party incorrectly, in duplicate, or due to a business
consolidation.

Chapter 7 - Page 6
Party Model
Party Model
Location
Party
Contact Point
Party site relationship type
Parties
Party
Organization Person relationship
Party role in
relationship
Party
relationship
Party relationship
site
Party Model
A party is an entity that can enter into business relationships. A party is defined by
information about that party, not its relationships. For example, the name “ Vision
Corporation” is part of the definition of a party with the Organization party type.
A relationship is defined by the characteristics or terms and conditions of that relationship. For
example, the attribute “Marital Status” is part of the definition of the Spouse of relationship.
The definition of a party is independent of its relationships. For example, a party, “John
Smith”, with the Person party type exists independent of any relationship entered by John
Smith.
A party site links a party with a location, indicating that party’s usage of the location. This
location can be a customer account site which would be used within the context of a customer
account for business purposes like billing and shipping.
A location is a point in geographical space described by a street address.
A party relationship is a binary relationship between two parties like a partnership.
A contact point is means of contacting a party. For example, a phone number, e-mail address,
or fax number.

Chapter 7 - Page 7
Party Model and Relationships
• Models inter and intra company relationships

• Supports party defined relationships
Phone Company *
Marla
(Customer)
Employee of Spouse of Related to

Business John Digital Image
World (Customer) Corporation
* Company implementing E-Business Suite

The party model has tables that store party information about people or organizations and any
relationships between these parties.
A party is anything that can enter into a business relationship with another party. The party
can be an organization, a person or a relationship. This allows you to store information about
your relationships in one representation of people and businesses.
The party registry stores information about relationships between parties, such as:
• Organizational hierarchies
• Business relationships
• Personal relationships
• Organization contacts
In addition to the original relationship, the party registry stores the reciprocating data for the
relationship for example:
Marla is a Customer of the Phone Company. Relationship information about Marla:

Chapter 7 - Page 8
• Marla is an Employee of Business World. The Business World record also indicates it is
an Employer of Marla (Business Relationship)
• Marla is the Spouse of John. John’s record indicates he is the Spouse of Marla. (Personal
Relationship)
• Marla is Related to Digital Image Corporation. Digital Image’s record indicates it is
Related to Marla.

Chapter 7 - Page 9
Party Model Components
• Data model: Tables and attributes for modeling

parties
• Backwards-compatible views: Other Oracle
Applications see the new party model as an Oracle
Applications Release 11 data model.
• PL/SQL APIs: Allows developers to use common
business logic to update the party master.
• Customer account forms, open interface, and
merge function work with the new party model.

The party model in Release 11i allows you to enter a party as an organization or person and
then create party relationships.
In Release 11 the party definition was simply defined as a customer and the party relationship
as a party could not be defined.

Chapter 7 - Page 10
Managing Parties
Managing Parties
Assign profile
Create customer Enter party
classes to customer
account profile information
account
classes
Review party Eliminate duplicate Create

information information relationships
Managing parties
When managing parties, you can:
• Create customer account profile classes
• Assign profile classes to customer accounts
• Create and maintain party information
• Define relationships between parties and between customer accounts. (Both reciprocal
and non-reciprocal)
• Merge parties and customer account information
• Review party and customer account information online and in reports

Chapter 7 - Page 11
Party Sites
Party Sites
• Allow multiple organizations or parties to do

business at one location.
• Are global (not specific to operating units).
• Allow you to perform address validation using
Vertex or TaxWare information.
• Have flexible address formatting with seeded and
custom formats.
Party Sites
Party sites are global but do not default in under different operating units. They are visible
under the original operating unit in which they were entered. To access them from other
operating units, you would query for that customer under the Site Number field and pick that
site from the list. After this is done, the address information will be available and can be
shared under the same site number.

Chapter 7 - Page 12
Customer Accounts
Customer Accounts
Attributes at party registry level:

• Name
• Street address
• Taxpayer Identification
Big H • Industrial classifications
Denver, Colorado • DUNS number (D & B)
• Parent/subsidiary relationships
• External credit ratings
customer account #A-123 customer account #B-123
Attributes at customer account level:

• Payment terms
• Shipping preferences
• Billing preferences
• Internal credit rating
Customer Accounts
Information held in the registry level is universally true. It is independent of relationships.
Information held in the customer account level is about your business relationship. It is for
items like payment terms and billing preferences.
The financial rollup point is an account. It tracks the monetary portion of a party’s purchases
and payments.
Party information is separate from the information about the relationships of the party. The
party model separates information about the organization or person party from the terms of the
relationship.
Additionally, the party model allows you to establish multiple relationships (also known as
party accounts) with the same organization or person party .
Addresses work in a similar fashion. You record an address for an organization or person once,
then reference it within the customer account layer, through the customer account site entity.

Chapter 7 - Page 13
Integrating Party Information
Oracle
Order Management
Owned by
Oracle Receivables
Shared with
Oracle Projects
Trading
Community
Architecture
(TCA) Oracle CRM suite

You can enter party information directly into Oracle Applications, or import it through
interface tables.
Party information is shared throughout the E-Business Suite. The tables for the Customer
Master, however, are owned by the Trading Community Architecture.
In the ERP, specifically Receivables and Order Management, the terms Customer and
Customer Number are used. In the Customer Relationship Management Suite (CRM) the
terms used are Account and Account Id. Even though different terms are used, they are linked
to the same record in the table.

Chapter 7 - Page 14
Agenda
Agenda


Chapter 7 - Page 15
Profile Classes
Profile Classes
• Cash on Delivery
• 20,000 Credit Limit
Poor Credit • Monthly Statements
• Net 30
• Monthly Statements
Good Credit
• Net 90
• No Credit Check
• Quarterly Statements
Excellent Credit
Profile Classes
Receivables, Vision Operations (USA) or Order Management Super User, Visions Operations
(USA)
(N) Customers > Profile Classes
You can use profile classes to describe and group customer accounts that share similar
characteristics. You can create as many profile classes as you need for your business. Profile
classes allow you to enter new customer account information quickly and consistently.
Oracle delivers a seeded profile class called Default. The customer account processing
function assigns a new account to the Default profile class. This profile class can be changed
during data entry on the customer account record in the Customer form on the Classification
Tab prior to saving the record. Post saving, the information can be updated in the Profile
Transactions Tab at either the account header or at the site level.

Chapter 7 - Page 16
Profile Class Characteristics
Credit/ Invoices and Payment

Collections Statements promptness
• Credit check • Invoice line • Payment terms

• Collector and tax printing • Discounts
• Payment • Statement cycle • Grace days
application • Consolidated
• Dunning letters invoices
• Finance charges

Every customer account must be assigned to a profile class. A profile class defines several
default values for customer accounts with similar credit terms and invoicing requirements.
After an account has been created, the default values can be modified based on the specific
characteristics of that customer account or account site.
For example, you may want to create a profile class for small manufacturers, called “Small
MFG”. Customer accounts assigned to this profile class might require credit checks before
orders will be fulfilled, given “Net 30” payment terms, and receive quarterly statements. When
creating a specific new customer account, you could assign that account to the “Small MFG”
profile class. If the customer account develops credit problems in the future, you might then
modify that account’s payment terms to “Cash On Delivery”.
Within the Order to Cash process flow, the applications involved use the credit checking
feature differently. Credit checking is not used in Receivables. Order Management (OM) does
utilize credit checking. OM determines which rules (usually defined by receivables personnel)
are used, and when they will be applied via the OM Transaction Type on a sales order.

Chapter 7 - Page 17
Guided Demostration - Create a Profile Class
In this demonstration you will see how to create a customer account profile class.
Responsibility: Order Management Super User, Vision Operations

(USA)
(N) Customers > Profile Classes
1. Enter the following values to create a new profile class

− Name: Demo-New
− Description: Demo Customer Profile
2. (T) Profile Class

− Collector: Pat
− Credit Check: Checked
− Payment Terms: 30 Net
− Allow Discount: Checked
− Receipt Grace Days: 3
− Finance Charge: Unchecked
− Match Receipts by: Sales Order
− Send Statement: Checked
− Cycle: Monthly
− Send Letters: Unchecked
3. (T) Profile Class Amounts

− Currency: USD
− Credit Limit: 60,000
− Order Credit Limit: 30,000
4. (I) Save

Chapter 7 - Page 18
Practice - Create a Profile Class
Overview
In this practice you will create a new profile class.
Assumptions
• You must have access to an Oracle Application Vision database or comparable training
or test instance at your site on which to complete this practice.
• Replace XX with the characters or numbers given by your instructor.
• Use the Order Management Super User, Vision Operations (USA) responsibility.
Tasks
Create a new profile class.
− This New profile class will be assigned to the Collector Jamie.
− The customers that will be in this grouping are not be allowed to use a discount after
the discount period has passed, nor will they have a grace period for those terms.
− Most customers will be required to pay for their goods and services within 30 days.
− By default, credit checking should occur for sales orders from these customers.
− We will be using a Sales Order to match our receipts and using the Invoice Match
rule set for any cash left over from applying our Standard AutoCash Rule set during
receipt application.
− To ensure that our customers who have a $100,000 credit limit with a $10,000
single order limit know their outstanding transactions, we will be sending them
statements monthly.

Chapter 7 - Page 19
Solution - Create a Profile Class
Create a new profile class
1. Open the profile class window.
• (N) Trading Community > Trading Community > Customers > Profile Class

− Name: XX-New
− Description: New Customer Credit Profile
− Status: Active
− Collector: Any collector from LOV
− Tolerance: zero (0)
− Credit Check: Checked
− Payment Terms: 30 Net (LOV)
− Override Terms: Unchecked
− Allow Discount: Unchecked
− Receipt Grace Days: Zero (0)
− Match Receipts by: Sales Order (LOV).
− Auto Cash Rule Set: Standard (LOV)
− Remainder Rule Set: Invoice Match (LOV).
− Charge Interest: Unchecked
− Send Statement: Checked
− Send Credit Balance: Checked
− Cycle: Monthly
− Leave remaining checkboxes unchecked.

Chapter 7 - Page 20
− Currency: USD
− Credit Limit: 100,000.00
− Order Credit Limit: 10,000.00

Chapter 7 - Page 21
4. (I) Save.

Chapter 7 - Page 22
Managing Customer Account Profiles
• Cash on Delivery
Poor Credit • Monthly Statements
• Net 30
Good Credit • Monthly Statements
• Net 90
• No Credit Check
Excellent Credit • Quarterly Statements

You can move a customer account from one profile class to another whenever it is deemed
necessary. To change the profile class, find the account and then select the new profile class
from the list of values under the Profile Transactions tab in the Customer window. You can
also assign profile classes at the site level of the customer if there is a saved, and active Bill-To
business purpose.
You can change one or more attributes of a profile class for a specific customer account. This
is called customizing the account profile class. It does not change any of the profile class
attributes for other customer accounts that share the same profile class.

Chapter 7 - Page 23
Updating Profile Classes
There are three options after making a change to a

profile class:
• Do not update existing profiles
• Update all profiles
• Update all non-customized profiles
• Net 60
• Monthly Statements
Good Credit

You can modify attributes in existing profile classes even after customer accounts are assigned
to them. However, when you try to save your changes to any saved profile class, you must
decide how you want the change to be applied.
You can choose one of these three options:
• Do Not Update Existing Profiles: Only the profiles of new customer accounts created
in the future will reflect the changes.
• Update All Profiles: The attribute is updated in all customer accounts that use this
profile.
• Update All Non-customized Profiles: Profile classes set the default values initially
assigned to individual customer account profiles. If an attribute in an individual party
profile was customized to be different from its profile class, changes to the value of a
profile class attribute do not change the customized value of the attribute in the individual
customer account profile.

Chapter 7 - Page 24
Reviewing Profile Class Changes
All profiles Non-customized profiles

updated updated
Concurrent Program:
Customer Profile Copy

When changes to a profile class cause changes to customer account profiles, Receivables
automatically generates the Customer Profile Copy concurrent program to review the changes.
This is an auditing report that summarizes all the changes made to the profile class.

Chapter 7 - Page 25
Agenda
Agenda

• Review Information

Chapter 7 - Page 26
Data Quality Management Overview
The DQM features in the Customers Workbench lets

you:
• Perform advanced searches for parties and
customer accounts with user–defined criteria in
the Search Criteria window.
• Prevent duplicate entries by determining if the
customer account that you are creating or
updating is a potential duplicate of any existing
account.

Oracle Trading Community Architecture (TCA) Data Quality Management (DQM) provides
functionality to keep party and customer account information free of duplicates as well as to
perform powerful searches on that information.
DQM must be set up to enable these features in the Customers Workbench. For example, if
DQM is not set up, the Find/Enter Customers window appears instead of the Search Criteria
window.

Chapter 7 - Page 27
Fuzzy Search
Fuzzy Search
• Fuzzy search uses word replacement to widen the

scope of a search by using data comparable to the
user-entered search criteria.
• In the Customer Find/Enter window you can do a
fuzzy search for example on:
– Person First or Last Name
– Organization Name
– Address
– Contact First or Last Name
Fuzzy Search
The fuzzy search method uses word replacement rules to map a word, abbreviation, or special
character that might be entered by a user as a search criteria to a similar word, abbreviation, or
special character.
For example, if a user might enter "Blvd" as a search criteria for an address search, you could
create a Word Replacement rule to retrieve records that contain "Boulevard". In the Word
Replacement rule, "Blvd" is referred to as the Original word and "Boulevard" is the
Replacement word.
Over 3,000 Original and Replacement word pairs are seeded for use with the fuzzy search
method.
To ensure the accuracy of the first fuzzy search that any user performs, you must create the
keys that link the Original and Replacement words by running the Generate Key for Fuzzy
Search concurrent program.
In the customer find/enter window you can do a fuzzy search and get the following results:
• Person first name, enter Jim to find James
• Organization name, enter AT and T to find AT&T
• Address, enter St to find Street

Chapter 7 - Page 28
Query Word Replacement
Query Word Replacement
Expands the range of possible matches to a query:

• Word: Characters with whitespace before and
after
• Original word: As entered by a user
• Replacement word: Used as part of the search
criteria
Original Word Replacement Word

Ave Avenue
Bob Robert
Robbie Robert
Word Replacement
Trading Community Manager
(N) > Setup > Word Replacements
To use the fuzzy search method you must create Word Replacement Rules in the Word
Replacements window.
The steps for a search are:
• Select the Type of word to be replaced.
• Enter a word, word fragment, character, or abbreviation that a user might enter as a
search criteria in the Original Word column. In the Replacement Word column enter text
that equates to the Original Word entry. Save the record.
• In the Generate Keys region, select Name or Address from the list of values for the Table
field in the Generate Keys region.
• Select the New Rows Only check box if you only want to generate keys for new customer
records.
• Click the Generate Keys button to run a concurrent program which generates the fuzzy
keys used by the fuzzy search method.

Chapter 7 - Page 29
Entry Methods
Entry Methods
Import from Enter complete Enter limited

other systems details information
Customer Standard entry Quick entry

interface
Enter a new customer directly from the Sales Order window
Entry Methods
Customer Interface
The Customer Interface allows you to import and validate current or historical customer
information from other systems into the E-Business Suite.
Standard Entry
Enter detailed party/customer account information, assign an address location code, select a
primary Bill-To, select a primary Ship-To, and link a Ship-To business purpose with a Bill-To
business purpose.
Quick Entry
The quick entry method allows you to quickly select the business purposes for an address by
using check boxes. However, you do not have the ability to specify a location code, select a
business purpose as a primary Bill-To or a primary Ship-To, or link a Ship-To with a Bill-To.
You can add these features later for this party by using the Standard Customer form.
Sales Order form
You may also enter a new customer directly from the Sales Order screen.

Chapter 7 - Page 30
Business Issues
Business Issues
CORP
corp
Corporation
Naming Conventions Automatic or Manual
Numbering
Classifications for Pricing and Payment of Unrelated

Reporting Invoices
Bill To
Bill To Bill To
Ship To Ship To Ship To Ship To
Centralized or Decentralized Address Structures
Business Issues
Before Entering Party and Customer Account Information:
• Specify naming conventions such as capitalization and abbreviations.
• Determine the usage of Automatic Numbering. The Automatic Customer Numbering and
Site Numbering system options and the Automatic Contact Numbering profile options
selections automatically number parties, site location codes, and contacts; or select the
manual numbering option.
• Define how to use classifications to group customers for pricing functionality like using
qualifiers and for reporting purposes. Classifications include: Customer Class, Customer
Type, Sales Channel, Category, and SIC.
• Consider if Use the Allow Payment of Unrelated Invoices system option to permit
payment of unrelated customer’s invoices is appropriate.
• Decide how to set up decentralized parties with multiple sites: as one party with multiple
sites, or as multiple customers each with one site.

Chapter 7 - Page 31
Business Purposes
Business Purposes
Each address can have multiple business purposes.
• Ship-to site • Ship-to site • Statements

• Bill-to site • Marketing • Dunning
• Legal
Business Purposes
Consider these issues before you set up multiple business purposes:
• You must have a valid address for use during transaction entry in Order Management and
Receivables.
• Only one site can be designated as the primary site for each business purpose. If there are
multiple business purposes you are able to have multiple primary designations.
• If you designate a primary site for Bill-To or Ship-To, it will default into a transaction
automatically. However, you can select a different site from the list of values.
These are standard business purposes:
Bill-to Invoices are sent here for payment.
Ship-to Where the goods are shipped.
Dunning Dunning letters are sent to this location.
Legal The legal location, which serves as the government point of contact.
Statements Statements are sent to this location.
Marketing Marketing literature such as product announcements are sent here.

Chapter 7 - Page 32
Multiple Sites and Business Purposes: Centralized Example
Multiple Sites and Business Purposes:

Centralized Example
ABC, Inc. is completely centralized, and its

headquarters handles all payment procedures.
New York Paris Washington, D.C. Chicago

Headquarters Ship-to Ship-to Ship-to
Bill-to Marketing
Statements
Dunning
Multiple Sites and Business Purposes: Centralized Example

In this example, ABC Company’s Headquarters is in New York, and all billing information
will be received there. Products will be shipped to the Paris, Washington, and Chicago
customer account sites.

Chapter 7 - Page 33
Multiple Sites and Business Purposes: Decentralized Example
Multiple Sites and Business Purposes:

Decentralized Example
XYZ, Inc. is completely decentralized, and each site

handles its own payment procedures.
New York Paris Washington, D.C. Chicago

Headquarters Ship-to Ship-to Ship-to
Ship-to Bill-to Bill-to Bill-to
Bill-to Statements Statements Statements
Statements Dunning Dunning Dunning
Dunning Marketing
Multiple Sites and Business Purposes: Decentralized Example

In this example, all locations have the ability to pay the invoices for the goods they received.
Each site has a Bill-To and Ship-To business purpose established for its site. We would
recommend each of these to be a separate party.

Chapter 7 - Page 34
Interface Data Entry
External Temporary Oracle

Databases Interface Tables Receivables
Customer Tables
Correct errors
with SQL*Plus
Customer Interface
Execution Report

Receivables, Vision Operations (USA)
(N) Interfaces > Customer
When importing party information from external databases, the data flows into temporary
interface tables, then on to Oracle master tables within the Receivables module. A report can
be run to view this interface from the external database. Any errors can be corrected with
PL/SQL within the temporary tables.
Importing Customer Data
All Customer data that you enter in the customers windows can be imported using the customer
interface.
Import profile class information such as payment terms, statement, automatic receipt, finance
charge, dunning, and invoicing information.
Updating Data
If data is maintained in an external system, use the interface to update the information at
regular intervals.
Preparation for Import

Chapter 7 - Page 35
Prior to running the Customer Interface it is important to prepare the environment to accept the
new data you wish to import. In some cases imported data will have values that may have not
been defined during earlier setups. Examples of information that can be imported to the
Customer record include: Collectors, Customer Bank Information, Dunning Letter Sets, Freight
Carriers, Payment Terms and Lookups. For a complete listing see the Receivables User’s
Guide. As the Customer Interface will not create these records, it is important to pre-define
theses elements for the import process to run smoothly.
Note: The Customer Interface will not create location combinations for foreign locations. A
foreign location is one where the country segment is not the same as the Default Country from
the Receivables System Options window.

Chapter 7 - Page 36
Using Standard and Quick Entry
Organization/Person *
Telephone Contacts
Classification Addresses Marketing
numbers
Payment Relationships
Profile Bank
method
class accounts
Business
purpose
* When using ERP forms to create an Organization/Person
A Party is automatically created.

Receivables, Vision Operations (USA) or Order Management Super User, Vision Operations
(USA)
(N) Customers > Standard
(N) Customers > Quick
The attributes above can be set at the Customer header record to default to all customer sites.

Chapter 7 - Page 37
Addresses
Payment Characteristics
Telephone
method Business Contacts
numbers
purpose
Profile
Bank class
accounts
Accounting
Details Order
Management
information

Linking Bill-to and Ship-to Locations:
• A Ship-To address can have an associated Bill-To address.
• The associated Bill-To address becomes the default during invoice entry when the Ship-
to location is selected.
You are able to select the checkbox Identifying an Address for a party Business Purpose
The Location attribute in the Business Purposes tabbed region of the customer account
addresses window, provides a simple way to name or identify an address. This location value
is used in transaction entry, receipts entry, create/approve/ confirm automatic receipts and
remittances, orders, and returns windows. It is also the first value that will appear in the list of
values on these documents.
To have Oracle automatically number locations, you can use the Automatic Site Numbering
system option. If you select the system option check box, TCA will uniquely number all the
customer account locations.

Chapter 7 - Page 38
Guided Demostration - Enter a Standard Customer
In this demonstration you will see how to enter a customer using the forms user interface.

(USA)
Note: Prior to this demonstration remember to turn off Automatic Site Numbering in the System
Options window.
1. (T) Advanced.
− Name: Demo-Big City
− (B) Find
− (B) New
2. (T) Classification.
− Profile Class: Demo-New
− Type: External
− Class: High Technology
3. (T) Order Management.

− Price List: Corporate
− Freight Terms: Prepaid
− Warehouse: Seattle Manufacturing
4. (T) Addresses.
− (B) New
− Country: United States
− Address: 411 College Drive
− City: New York
− State: NY
− Postal Code: 10013
5. (T) Business Purpose.
Usage Location Bill To Primary

Ship To Plant 1 Checked
Bill To AP Checked
6. (B) Open.
7. (T) Details.

Chapter 7 - Page 39
− Salesperson: Abbott, Rachel

− Order Type: Mixed
− FOB: Customer Site
9. Close the Business Purpose window and the Address window.
10. (B) New and create a second address.

− Address: 345 Second Lane
− City: Chicago
− State: IL
11. (T) Business Purpose.

Ship To Plant 2
Marketing Office
12. (I) Save.

Chapter 7 - Page 40
Practice - Enter a Standard Customer
Overview
In this practice you will enter a new customer in the customer standard form.
Assumptions
• You have completed the Create New Customer Profile Class practice in this lesson.
Tasks
1. Enter a standard customer.
− Big City is a new High Technology customer for your company. As they have
vetted by the credit team for new customer credit, they should receive the New
profile class.
− The sales team has determined they are a commercial client who should be initially
using the Corporate price list. Eventually they will be given a specialized price list,
but we do not want to discourage any purchases until the pricing team has finished
their work.
− Big City has one main shipping and billing address in the United States: 222 W. Las
Colinas Blvd, San Mateo, CA, 94401. They do have other addresses, but this is the
only facility we will be working with initially. Whenever we ship to this address,
we should also be sending the invoice to this location.
− Rachel Abbott, our salesperson responsible for this account has indicated on your
customer data sheet that the materials they will be ordering are most likely to come
from our Seattle Manufacturing Plant and they will be required to pay for their
goods in 30 days.
− Rachel has also indicated that they may ask to place sales and return lines on the
same order document, therefore the Mixed Order Type will be most appropriate for
their transactions.
− Big City will be prepaying for their freight and will take ownership of the goods
only when it reaches their loading dock.

Chapter 7 - Page 41
Solution - Enter a Standard Customer
Enter a Standard Customer
1. (N) Trading Community > Trading Community > Customers > Standard.
2. (T) Advanced.
− Name: XX-Big City (where XX is your initials)
− [B] Find
− [B] New
3. (T) Classification.
− Profile Class: XX-New
− Type: External
− Category: High Technology
− Sales Channel: Commercial

Chapter 7 - Page 42
5. (T) Addresses
− [B] New

Chapter 7 - Page 43
− Address: 222 W Las Colinas Blvd
− City: San Mateo
− State: CA
6 (T) Business Purposes

Bill To AP Checked
Ship To Dock 4 AP Checked
7. (I) Save after entering Bill To to be able to add it to the Ship To.
8. (B) Open, (T) Details.

− Salesperson: Abbott, Rachel

Chapter 7 - Page 44
− Freight Terms: Prepaid
− FOB: Customer Site
− Warehouse: Seattle

Chapter 7 - Page 45
10. Save and Close form.

Chapter 7 - Page 46
Differences Between Standard and Quick Entry
Differences Between Standard

and Quick Entry
Function Standard Quick

Use a check box to assign business
purposes quickly to an address
Bill-to and Ship-to can be linked
Identify business purpose as primary
Location code can be named
Ability to update Business Purpose
Tabs
Note: You are able to update information entered via the Quick Customer Entry form using the
Standard Customer Entry form. The data entered via either form updates the same tables. The
constraints are based upon the form, not the data.

Chapter 7 - Page 47
Guided Demonstration - Enter a Quick Customer
This demonstration will show you how to create a new customer, using the Quick Customer
entry window.

(USA)
(N) Customers > Quick
1. (T) Basic
− Name: Demo-Quick
− (B) Find
− (B) New
2. (T) Classification
3. (T) Order Management

4. (T) Addresses
− (B) New
− Address: 711 Quick Drive
− City: New York
− State: NY
5. (I) Save

Chapter 7 - Page 48
Practice - Enter a Quick Customer
Overview
In this practice you will enter a new customer in the customer quick form.
Assumptions
• You have completed the Create Customer Profile Class practice in this lesson
Tasks
1. Enter a quick customer.
− Quick is a new customer for your company. They are so new, they have not yet
been entered into your customer master file. By entering basic information we will
allow them to create a sales order today.
− Quick has a billing and shipping facility in the United States at: 111 Quick Drive,
Chicago, IL 60601.

Chapter 7 - Page 49
Solution - Enter a Quick Customer
Enter a Quick Customer
1. (N) Trading Community > Trading Community > Customers > Quick
2. (T) Basic
− Name: XX-Quick (where XX is your initials)
− [B] Find
− [B] New
3. (T) Addresses
− [B] New
− Address: 111 Quick Drive
− City: Chicago
− State: IL
4. (T) Business Purpose

− Bill-to: Radial (B) is selected
− Ship-to: Radial (B) is selected
− Marketing: Unselect Radial (B)
5. (I) Save and close form.

Chapter 7 - Page 50

Chapter 7 - Page 51
Dun & Bradstreet (D&B) Integration
• Search the D&B database for information about

businesses, including proprietorships.
• Request investigations of businesses not in the
D&B database.
• Purchase standard data sets or a standard report
image.
• Request initial or updated data sets and reports
over the Internet.
– Online for a single business
– Batch process for multiple businesses
• Compare D&B data and user-entered data

The integration of Dun & Bradstreet (D&B) data products with Oracle Applications provides
on-line and batch processes that you can use to acquire and review customers’ demographic,
corporate relationship, financial, and credit risk data.
You can search for and purchase D&B information on specific companies from D&B’s
database of more than 60 million businesses worldwide. The information obtained from D&B
can be updated or expanded during future online sessions or by using the batch loading
process.

Chapter 7 - Page 52
D&B Data Formats
D&B Data Formats
Global Data Product (GDP) files

provide a range of data sets that can
include:
– Unique, location-based DUNS number.
– Location and contact information.
– D&B proprietary credit evaluations.
– Detail financial, organizational, and
legal information.
Business Information Report (BIR)

provides a static image of the standard
BIR print format.
D&B Data Formats

The D&B data is available in the form of Global Data Products (GDP) files and BIR reports
that contain a wide variety of data elements.
For example, the Enterprise Management GDP provides detailed demographic, corporate
structure, risk, and financial information for integration with Oracle Applications. These D&B
data files contain data elements you can use to improve risk assessment procedures, make
better informed credit decisions, and improve customer acquisition and retention. Enterprise
Management includes the most complete set of data, scores, and ratings available about your
trading community.
The Business Information Report (BIR) provides many of the data elements from the D&B
database in a standard format. You can order a BIR, store an image of the report in your
database, and view the report whenever necessary. The BIR is stored in the Organization
Profiles table, so that historical information about BIR’S can be maintained.

Chapter 7 - Page 53
D&B Online
D&B Online
• Query your database to determine if it already

contains D&B data for a party.
• Decide if the D&B data in your database is
sufficient and current.
• Query the D&B database to determine if data for
the requested business is available from D&B.
• Request investigation of business, if data is not
available from D&B database.
• Request download of data or BIR, if data is
available from D&B database.
D&B Online
Information can be purchased and retrieved from D&B for parties (organizations or persons)
that are prospects or that have an existing account. When you obtain D&B information about a
company that does not exist in your database, a new party is created using the D&B data.
To obtain D&B information for a party you may follow one of several scenarios:
• If the party already exists, you can purchase D&B data to initially acquire or to update
the D&B data for the existing party.
• If the appropriate party does not exist in your records, you can search the D&B database
to determine if data about the business is available in the D&B database.
• If data is available from D&B for the new party, you can purchase that data from D&B.
Purchasing the data from D&B will automatically create a new party for you.
• If data is not available from D&B for the new party, you can order an investigation from
D&B to gather the necessary data or you can manually create a new party using data you
have acquired from other sources.

Chapter 7 - Page 54
D&B Batch Loading
D&B Batch Loading

The batch process includes five steps:
D&B
Generate list Transfer request list Receive formatted

of parties to D&B file from D&B
Run the Load D&B Run SQL*Loader

Data program
D&B Batch Loading

When you need to update a few parties or to investigate significant changes for one party, you
should use the online method to purchase and retrieve D&B information. Individual users can
efficiently search for and retrieve a party’s D&B data online over the Internet.
If the D&B data for a large number of parties must be updated on a regular schedule or even
occasionally, batch loading would be the more efficient method. You can update all parties,
gather data only for new parties, or update parties that have not been updated since a specified
date. Batch retrieval and loading of D&B data is usually a regularly scheduled, automated
process set up and run by your Oracle Applications system administrator.

Chapter 7 - Page 55
Data Quality Management (DQM)
DQM lets you:

• Search your party information for possible
duplicates or matches to your input values.
• Apply threshold scores or filter conditions to
evaluate the results of a search.
• Identify existing duplicate entries in the TCA party
registry.
• Prevent the entry of duplicates into the TCA party
registry.

Many applications in Oracle’s E-Business Suite contribute data to the Trading Community
Architecture (TCA) registry about parties, addresses, contacts, and contact points. Each
application must also efficiently and consistently retrieve data for use in transaction processing.
Duplicate records reduce the efficiency of transaction processing and the effectiveness of
business intelligence tools and procedures.

Chapter 7 - Page 56
How Does DQM Work?
How Does DQM Work?
TCA Cleanse & Staged

Registry Standardize Schemas
Input Cleanse Apply Match Potential

Record Rule Matches
How Does DQM Work?

The DQM process requires a few steps to acquire data into a staged schema and then evaluate
the party information for duplicates or matches.
• Party data is stored in the TCA Registry.
• DQM cleanses and standardizes the data using a set of transformation functions. The
cleansed data is stored in the staged schema.
• Input records enter the process from online search or duplicate identification processes.
• DQM cleanses the input records using the transformation functions in the highly
configurable match rules.
• DQM compares the cleansed input records to the information in the staged schema using
the match rule and calculates a matching score.
• The result of the comparison performed by DQM is a list of potential matches and their
calculated scores.
For more information on DQM refer to the Data Quality Management Advanced Topic.

Chapter 7 - Page 57
Agenda
Agenda


Chapter 7 - Page 58
Customer Account Relationships
Parent Parent Parent Child
Reciprocal Nonreciprocal
A B
A C
B C

(N) Customers > Quick or Standard (T) Relationships
Relationships exist between two customers and can be reciprocal or nonreciprocal. They allow
the following:
• Payment of related invoices.
• Sharing of pricing entitlements (Agreements and Commitments).
• Consolidation of business addresses (Selection of a related customer’s ship-to address
during order entry).
Relationships are not transitive: If customer A is related to B and B is related to C, A and C are
not related. You must build the A to C relationship separately.
Under System Options you can select the check box Allow Payment of Unrelated Transactions
if you want to permit application of funds from one party to another unrelated party. If you do
not select this check box, a customer account relationship must be set up to apply payments
from one account to another.

Chapter 7 - Page 59
Guided Demonstration - Create Customer Relationships
Order to Cash Fundamentals
D11435GC20

Chapter 7 - Page 60
Guided Demonstration - Create Customer Relationships
In this demonstration you will learn how to create customer account relationships.

(USA)
1. (T) Basic
− Name: Demo-Quick
− (B) Find
− Place your cursor on the line with a customer number [not just the party number]
− (B) OK
2. (T) Relationships
Name Number Active Reciprocal Type Comment

Demo-Big City Defaults Checked Checked Reciprocal
Hilman and Defaults Checked Unchecked Parent
Associates (1004)
3. (I) Save.

Chapter 7 - Page 61
Practice - Create Customer Relationships
Overview
In this practice you will create customer relationships.
Assumptions
• You must have completed the Create New Customer practice in this lesson.
Tasks
Create customer relationships.
− It has come to your attention that three of your customer accounts have relationships
that you need to address within the E-Business Suite.
− XX-Big City and Business World (1608) have identified they are in a partnership
[brother-sister] that allows either account to pay the bills for transaction created.
− Hilman and Associates (1004) and XX-Big City are in a parent-child type
relationship whereby Hilman is the parent of XX-Big City.

Chapter 7 - Page 62
Solution - Create Customer Relationships
Create Customer Relationships
1. Navigate to the Customers window
• (N) Trading Community > Trading Community > Customers > Standard.
2. Find XX-Big City
• Name: XX-Big City
• (B) Find
3. (T) Relationships.
4. Create appropriate relationships

Name Number Active Reciprocal Type
Business Assigned Checked Checked Reciprocal
World
Hilman and Assigned Checked Unchecked Parent
Associates
5. (I) Save

Chapter 7 - Page 63
Agenda
Agenda


Chapter 7 - Page 64
Merge Parties or Customer Accounts
AT&T American AT&T Montreal London

Telephone
Merge parties or customer accounts to:

• Eliminate incorrect data and duplicate
information
• Consolidate site data
• Reflect party or customer account changes due
to business consolidation

(USA)
(N) Customers > Merge
(N) Customers > Party Merge
Merging a party is different than merging a customer account. The party is everything under
that party. The customer account merge is two accounts under one party. Merging party or
customer account information combines all information for two parties, customer accounts, or
account sites. You can delete or inactivate the merge-from party, customer account, and
account sites.
Before merging consider archiving the historical data for the absorbed party, customer account,
or account site. Also, consider that the information is being used by the entire e-Business suite
and will affect other applications.
Merging Incorrect Data
The most common reason to merge parties is to clean up data entered in error. For example,
data related to an existing party “White Place” might be entered in error for a new party created
as “White Corp.” You merge the data for these parties to consolidate all the data for White

Chapter 7 - Page 65
Place. Misspellings and the incorrect use of upper and lower case are also common reasons for
merging parties.
Merging Site Data
Another reason to merge party data is the consolidation or relocation of party sites. For
example, if a party closes a facility in Milan and moves all activity to an existing facility in
Rome, data related to the Milan site will be merged with the data for the Rome site.
Note: Because historical reporting will no longer be available for the Milan site, you should
carefully consider any merging.
Merging Party or Customer Account Data
A less common reason to merge party data is when two different parties merge and form a
single party.
Note: Because historical reporting will no longer be available using the parties’ prior names,
you should carefully consider any merging.
When merge processing is complete, Receivables automatically generates a party Merge
Execution report which can be printed or reviewed online.
After party data has been merged, there are no links between the previous party and its
transaction records. These transactions appear as if they had always belonged to the succeeding
party.
To automatically copy “From” addresses as “To” addresses, select Create Same Site.

Chapter 7 - Page 66
Party Merge
Party Merge
• Party merge affects all of a party’s relationships

and related entities, such as customer accounts
and their associated transactions.
• Merge procedures and the affected entities must
be registered in the merge dictionary.
Party Merge
With the Party Merge feature you can consolidate duplicate parties, integrate an acquired party
into another party, or consolidate duplicate party sites of a party in the TCA party registry. The
related child entities that get merged or transferred include party relationships, contact
information, party profiles, customer accounts, and information obtained from third-party
sources.
The merging parties are referred to as the merge-from party and the merge-to party, or the
source and the target respectively. After the merge-from party is merged into the merge-to
party you can delete the merge-from, or source, party. By default the merge-from party is set
to a Merged status.
You must register party entities and party sites in the Party Merge dictionary. Some Oracle
applications, along with their party entities, are automatically registered at installation.
Registration specifies the names of the procedures required to merge the entities that interact
with the party entities. The Party Merge program uses the information in the Party Merge
dictionary to recognize which entities to merge.

Chapter 7 - Page 67
Guided Demonstration - Perform a Customer Merge
In this demonstration you will learn how to merge two parties together. In this merge you will
transfer data (including transactions) from one party to another and concurrently delete the
record you are moving from.

(USA)
(N) Customers > Merge Parties
1. Enter batch information for your merge activity:

− Batch Name: Demo-1
− Commit at Batch Level: Checked
− Delete Merged Records: Checked
2. Enter information regarding which parties to merge in the Party Details region:
− Party Type: Organization
− From Party Name: Demo-Quick
− To Party Name: Demo-Big City
− Merge Reason: Merger
3. (I) Save
4. (T) Party Sites

− In the From Site Address field you should see the address you defined for your
Quick customer: 711 Quick Road, New York, NY , 10019.
− The Operation to be performed should default to Transfer. This will allow the
system to copy your address information from one party to another.
5. (I) Save
6. (B) Run Batch
7. Wait until concurrent request completes.
• (M) View > Requests
• (B) Find
8. Query the Demo-Quick customer. It should no longer appear as we indicated the merged
record should be deleted.

Chapter 7 - Page 68
Agenda
Agenda

• Defining Party Relationships

Chapter 7 - Page 69
Reviewing Information
Reviewing Information
Review party and customer account data

online
Search party and customer account

information
Query summary or detail levels of information
Generate reports

Chapter 7 - Page 70
Common Search Scenarios
To…. Then...
Find all parties assigned Search by profile class

to a profile class
Review detailed information Search by using party

about a party name or address
View all parties belonging Query using the SIC

to an SIC code code

(USA)
(N) Customers > Customers Summary
Online Searches
It is possible to use the above search scenarios to find customers online and review their
details.
While using the summary form to view multiple customers, you are able to view the
information or export it to a Excel spreadsheet using standard functionality.

Chapter 7 - Page 71
Reports
Reports
Customer Listing Detail/Summary
Customer Profiles Report
Customer Relationships Listing
Reports
Customer Listing Detail/Summary
The mode of this report is changed via a report parameter. Use the Detail report to review
detail customer
information entered for each customer. Use the Summary report to review summary
information about your customers. You can view customer name, customer number, status, and
any addresses and site uses you entered for your customers.
Customer Profiles Report
Use this report to review customer profile information assigned to each customer or customer
site. You can also review any changes made to your existing customer profiles in the Customer
Profile Classes window. If the profile option AR: Sort Customer Reports by Alternate Fields is
Yes, Receivables sorts information using the value of the Alternate Name field in the
Customers window.
Customer Relationship Listing
This report lets you review all customer relationships that have been defined. This report
includes the name and number of the primary and related customers, whether the relationship is

Chapter 7 - Page 72
reciprocal, and any comments. The report lists all active relationships first followed by the
inactive ones.

Chapter 7 - Page 73
Agenda
Agenda


Chapter 7 - Page 74
Required Customer Profile Setup Steps
The following setup steps are required for

implementing customer profile classes:
• Collectors
• Payment Terms

There are several setup steps that must be performed prior to implementing Customer Profile
Classes. These required steps will allow you to create a customer profile class that can then be
attached to the customer account record.

Chapter 7 - Page 75
Collectors
Collectors
Collectors are used in the following windows:

• Customers Profile Classes
• Customers
• Customer Calls
Collectors
(N) Setup > Collections > Collectors
Collectors are assigned to a profile class and can be updated on the customer record. When you
assign a collector to a
profile class, that collector becomes the collector for all customers assigned that profile class.
Collector names and telephone numbers can be printed on dunning letters sent to customers.
Receivables displays active collectors and their descriptions as list of values choices in the
Customers, Customer Profile Classes, and Customer Calls
windows. Receivables does not display inactive collectors in the list of values for these
windows.
You can make an existing collector inactive by unchecking the Active check box and then
saving your work. If the collector you want to
make inactive is associated with an active customer, Receivables displays a warning message.
Receivables provides a predefined collector called DEFAULT.

Chapter 7 - Page 76
Payment Terms
Payment Terms
Payment % of Discount
Schedule Allowed
Last Day
of the Month
option
Credit Check
Check box
Payment Terms
Payment Terms can be attached to a profile class. The term can then default from the customer
this profile class is attached to, onto the Sales Order transaction, where it is a required field.
Payment Terms will also factor into Credit Checking in Order Management Transaction
processing.
For details on Payment term definition, refer to the Oracle Receivables User Guide.

Chapter 7 - Page 77
Optional Customer Profile Setup Steps
Some setup steps may be helpful to define prior to

implementing Customer Profile Classes:
• Customer Profile Lookups
• Statement Cycles
• Dunning Letters and Sets
• AutoCash Rule Sets
• Grouping Rules

These setup steps will provide additional information to be placed on the Customer Profile
record. While they are not required, it may be helpful to implement these steps prior to
creating Customer Profile Classes to avoid the requirement of updating the Customer Profile
record with these data later.
Customer Profile Lookups
Lookups provide list of value selections when in a form. The Customer Profile Lookups
include: Account Status, Credit rating for customers, and Customer Credit Risk.
Statement Cycles
These cycles control when you create customer statements.
Dunning Letters and Sets
Dunning Letters inform your customers of past due items and finance charges. Receivables
provides three predefined letters as well as ten letters that can be personalized. Additionally
you can create your own dunning letters. To use dunning letters they must be added to a
Dunning Letter Set. These sets combine a sequence of dunning letters into one group.
Receivables provides one letter set called STANDARD which includes the three delivered
dunning letters.

Chapter 7 - Page 78
AutoCash Rule
If you are using AutoCash, define your rule sets before defining system parameters or customer
profile classes. AutoCash determines the sequence of application methods Receivables uses
when applying receipts imported using AutoLockbox to open debit items.
Grouping Rules
Grouping rules indicate how to group transaction lines imported by AutoInvoice.

Chapter 7 - Page 79
Required Setup Steps for Customers
Required Setup Steps for Customers
The following setup steps are required for

implementing customers:
• System Options
• Profile Options
• Profile Classes

Chapter 7 - Page 80
Profile Options
Profile Options
Some key profile options related to Customers:

• AR: Change Customer on Transaction
• AR: Customers – Enter Alternate Fields
• HZ: Bypass Find/Enter Window
• HZ: Cleanse Fuzzy Key
• HZ: Display D&B button in Customer form
• Default Country
Profile Options
System Administrator
(N) Profile > System
There are a number of Profile Options that will affect customer data or the windows used to
enter the data. Some of the key profile options are:
• AR: Change Customer on Transaction: Determines whether to let users update customer
names in the Customer
windows.
• AR: Enter Alternate Fields: Controls whether users can enter information in the Alternate
Name field in the Customers and Customer Addresses windows. Receivables also uses
this information when you choose Customer Name Sort as a parameter when printing
certain Receivables reports (for example, the Customer Listing – Detail or Summary
report). Refer to the AR: Sort Customer Reports by Alternate Fields profile option
• HZ: Bypass Find/Enter Window:Specifies if users can bypass the Find/Enter window and
directly enter the Customers–Standard and Customers–Quick windows. If you set this
profile option to No, then the user must navigate through the Find/Enter window each

Chapter 7 - Page 81
time they want to enter new customers in the Customers–Standard and Customers–Quick
windows.
• HZ: Cleanse Fuzzy Key: If set to Yes, allows Receivables to create fuzzy keys by
removing all internal and trailing vowels (not leading vowels) and removing all double
letters in a word.
• HZ: Display D&B button in Customer form: Enables the D&B Information button in the
Customers–Standard and Customers–Quick windows of Oracle
• Receivables. Use this profile option only if you enable Dun and Bradstreet integration
with Receivables.
• Default Country: This is the default source for the Country field for all address regions
and is used by the Flexible Address Formats feature, the Flexible Bank Structures feature,
and the Tax Registration Number and Taxpayer ID validation routines.
There are many more Profile Options that will affect Customers in the Order to Cash process.
For a complete listing of profile options, please refer to the Oracle Receivables User Guide.

Chapter 7 - Page 82
Optional Setup Steps for Customers
Optional Setup Steps for Customers
Some setup steps may be helpful to define prior to

implementing Customers:
• Customer Lookups
• Customer Bank Accounts
• Payment Methods
• Flexible Address Style
Optional Customer Setup Steps

These setup steps will provide additional information to be placed on the Customer Profile
record. While they are not required, it may be helpful to implement these steps prior to
creating Customer Profile Classes to avoid the requirement of updating the Customer Profile
record with these data later.
Customer Lookups
Lookups provide list of value selections when in a form. The Customer Lookups include:
Address Categories, Country Codes, Business Purposes, Customer Categories, Customer
Classes, Free on Board (FOB), Freight Carriers, Language (for language used at customer site),
Job Titles, Contact Titles (Mr. and Mrs, etc.), Communication Type, Relationship Type, and
State abbreviations.
Customer Bank Accounts
If you use Receivables, use the Banks window to define your internal banks, which you use for
receipts, and external banks, which are your
customers’ banks with which you do business. These customer bank accounts are used for
automatic receipts.
Payment Methods

Chapter 7 - Page 83
Receivables uses payment methods to account for your receipt entries and applications.
Payment methods also determine a customer’s
remittance bank information. This information can be used for transactions from credit card
payments to automatic receipts and bank charges.
Flexible Address Style
To enter customer, supplier, bank, check and remit to addresses in country specific formats,
you must set up flexible address formats. This is a multi step process that will allow you to
conform to post regulations for the countries you interact with.

Chapter 7 - Page 84
Flexible Address Formatting
19 Kew Gardens Road

Kew, Surrey
TW9 4RW
England
29 Long Road
Wheaton, IL
60187

Flexible address formatting allows you to adapt the address style based upon the country the
address has been associated with.
There are two options when using flexible address formats:
• Use Predefined Format
• Customize Address Format
Oracle provides five predefined address styles or formats: Japanese, Northern European,
Southern European, South American, and United Kingdom/Asia/Australasia. For details on
these formats please consult the Receivables Users Guide. While all of the address styles have
been defined, none have been associated with a specific country.
To Customize Address Formats, you must follow a simple, yet multi step process.
Step 1: Setup Flexible Address Format
As the address formats are designed in a descriptive flexfield, we will use this functionality to
add to the list of available formats. There are several descriptive flexfields that must be
updated with a new context sensitive segment to increase the address format options. They
are:

Chapter 7 - Page 85
Descriptive Flexfield Displayed
Bank Address Banks
Remit Address Remit–to Address, Customers
Payment Address Payment Summary, Payment Overview
Site Address Suppliers
After creating a context field value, associate segments appropriate for your new address
format. Remember to freeze and compile the flexfield.
For more information on creating context sensitive descriptive flexfields please refer to the
Oracle Application Flexfields Guide.
Step 2: Create Address Style Lookup
After you have created a new context field value you must now map the context field value
name to a new lookup code. Using the Application Developer responsibility navigate to the
Special Lookups window. There you will need to enter the following values:
• Language
• Code – this must match the context field value you created in Step 1
• Meaning – this should be the description you gave the context field value in Step 1
Do not use start or ending dates for this lookup.
Step 3: Assign Style to Country
It is necessary to associate the style you created in Step 2 with a country on the Countries and
Territories window. You must do this step for all countries you wish to have a associated with
a flexible address format, custom defined, or delivered by Oracle.
For more detail regarding the flexible address format please refer to the Oracle Receivables
User Guide.

Chapter 7 - Page 86
Agenda
Agenda


Chapter 7 - Page 87
Oracle Trading Community Architecture
Oracle Trading Community Architecture (TCA)

Administration provides a single access to the setup
and administration functionality for various TCA
features.

The Administration tab is not for implementation, but rather the setup and maintenance of TCA
entities, functionalities, or concepts that are used throughout the Oracle E-Business Suite.

Chapter 7 - Page 88
TCA Parties
TCA Parties
TCA is a model for maintaining complex information

about the parties and customers who belong to your
commercial community, including organizations,
locations, and the network of hierarchical
relationships among them.
PARTIES
Person Organization Group
TCA Registry
The TCA Registry is the single source of trading community information for all Oracle E-
Business Suite applications. Administration allows you to control the data in the Registry to
best fit your business needs.

Chapter 7 - Page 89
TCA Administration
TCA Administration
Each subtab under the Administration tab contains

specific administration functionality:
ADMINISTRATION
Data Quality
Relationships Enrichment
Management (DQM)
Classifications Security
TCA Administration Subtabs

• Relationships: Set up the relationship types that can be used to create relationships
among entities in the TCA Registry.
• Classifications: Set up the class categories and codes that can be used to classify entities
in the TCA Registry.
• DQM: Set up Data Quality Management (DQM), which provides powerful search and
duplicate identification functionality.
• Enrichment: Set up Third Party Data Integration to control the usage and display of third
party data along with user-entered information in the TCA Registry. You also set up your
integration with D&B.
• Security: Set up data sharing groups and control how specific entities in the TCA
Registry can be accessed depending on user and responsibility privileges.

Chapter 7 - Page 90
Using Party Paying Relationships
Using Party Paying Relationships
You can create and manage relationships between

parties using Oracle Trading Community Architecture
Relationship Manager.
The party relationships that you can use in
Receivables for various payment-related functions are
called party paying relationships, which are transitive.
Party Paying Relationships

In Receivables, a party paying relationship is a relationship where all corresponding accounts
and transactions that are associated with one party are accessible to another party. For example,
if you create a party paying relationship between Business World and Acme Worldwide, then
you can select from among both Business World and Acme Worldwide transactions when
applying a Business World receipt.

Chapter 7 - Page 91
Using Customer Account Relationships
Using Customer Account Relationships
Customer account relationships also provide this type

of access.
Customer account relationships, however, build only
flat hierarchies that can be difficult to maintain when
multiple parties are involved.
Party Paying and Customer Account Relationships

With party paying relationships, you can define groups of related parties that are easy to create
and maintain in Relationship Manager. You can therefore use this flexibility to efficiently
model the complex business relationships within your trading community.
Note: Paying parties must have at least one account.

Chapter 7 - Page 92
Party Paying and Customer Account Relationships
Party Paying and Customer Account

Relationships
Receivables considers both types of relationships
during the following activities:
• Applying receipts, including:
– manual receipts, Mass Apply receipts, QuickCash
receipts, and Lockbox receipts
• Applying invoices against commitments and bills
receivable
• Adjusting or crediting transactions
• Entering, on the Transactions workbench, the
paying customer for a transaction
• Creating automatic receipts (via the paying
customer that you specified on the Transactions
workbench)
Using Party Paying Relationships and Customer Account Relationships

Note: In Oracle Order Management's Sales Orders window, you can enter an agreement that
you defined for either a selected customer or related customers. Order Management recognizes
related customers, however, only if the relationships were built via customer account
relationships.
If you want to let a party pay for another party's transactions, you do not have to define
relationships for each of these. You can simply set the system option Allow Payment of
Unrelated Invoices to Yes.
You use the Customer Relationships Listing to view a listing of all relationships that exist for a
customer.

Chapter 7 - Page 93
Creating Party Paying Relationships
Creating Party Paying Relationships
The relationship type that you use to create a party

paying relationship must meet these two
requirements:
• The relationship type must be hierarchical, and the
subject and object parties must be of type
Organization.
• The relationship type must be assigned to one of
these relationship groups, either:
– Pay Within
– Pay Below

Chapter 7 - Page 94
Pay Within Paying Relationships
If you assign one phrase of a relationship type to the

Pay Within relationship group, then relationships that
you create using that relationship type are Pay Within
paying relationships.
This means that any party within the relationship can
pay for the accounts of any other party within the
relationship.

The diagram on the following slide illustrates several parties within a Pay Within paying
relationship.
In this scenario, all accounts of each party in the relationship are available to all other parties in
the relationship for receipt application, commitment application, and so on.

Chapter 7 - Page 95
Party Paying Relationships Process Flow
ACME USA
ACME England
ACME Worldwide
Account
Account
Account
INV
ACME West
INV
Account
INV

In other words:
Acme Worldwide can pay for Acme USA, Acme England and Acme West
Acme USA can pay for Acme Worldwide, Acme England, and Acme West
Acme England can pay for Acme Worldwide, Acme USA, and Acme West
Acme West can pay for Acme Worldwide, Acme USA, and Acme England

Chapter 7 - Page 96
Pay Below Paying Relationships
If you assign one phrase of a relationship type to the

Pay Below relationship group, then relationships that
you create using that relationship type are Pay Below
paying relationships.
A Pay Below paying relationship is a parent-child
relationship where each party can pay for its own
transactions, as well as the transactions of all parties
that are lower in the hierarchy (children,
grandchildren, and so on).

If the parties in the same diagram on the previous slide are in a Pay Below paying relationship,
then all accounts of each child party in the relationship will be available to each parent party in
the relationship for receipt application, commitment application, and so on. In other words:
Acme Worldwide can pay for Acme USA, Acme England, Acme West, and its own
transactions.
Acme USA can pay for Acme West and its own transactions.
Acme England pays for its own transactions.

Chapter 7 - Page 97
Relationship Types and Relationship Groups
Relationship Types and

Relationship Groups
For party paying relationships, you should not assign

the same relationship type to both the Pay Within and
Pay Below relationship groups, because Receivables
will recognize only the Pay Within group.
Relationship Types and Relationship Groups

If Business World wants to create a Pay Within paying relationship with Company A and a Pay
Below paying relationship with Company B, they must:
Define two different relationship types.
For each relationship type, assign one phrase to a relationship group, either Pay Within or
Pay Below.
Use the two relationship types to create two paying relationships, one for Company A and
one for Company B.

Chapter 7 - Page 98
Summary
Summary

• Define the features enabling you to enter and
maintain party and customer account information
• Create profile classes and assign them to
customer accounts
• Create and maintain party and customer account
information
• Enable customer account relationships
• Merge parties and customer accounts
• View party and customer account information
• Define TCA party paying relationships

Chapter 7 - Page 99

Chapter 7 - Page 100
Inventory Organizations
Chapter 8
Chapter 8 - Page 1
Chapter 8 - Page 2
Objectives
Objectives
After completing this module, you should be able to

do the following:
• Describe Enterprise Structure in Oracle
Applications
• Define Units of Measure
• Define Locations
• Setup Inventory Organizations
• Establish Inventory Parameters
• Define Sub-inventories
Chapter 8 - Page 3
Agenda
Agenda
• Overview of the Enterprise Structure

• Defining Units of Measure
• Defining Locations
• Setting up Inventory Organizations
• Establishing Inventory Parameters
• Defining Sub-inventories
Chapter 8 - Page 4
What is Enterprise Structure?
Set of Books 2
Location B
Organization A Organization B
Location A
Set of Books 1
Subinventory Subinventory Subinventory Subinventory
Locator Locator Locator Locator Locator

Enterprise Structure encompasses how your company is structured from an operating, legal and
reporting perspective. Oracle Applications considers the following in defining Enterprise
Structure from an Inventory perspective:
• Set of Books
• Legal Entity
• Operating Unit
• Inventory Organization
• Location
Set of Books - is a financial reporting entity that uses a particular chart of accounts, functional
currency, and accounting calendar. The Set of Books is used for reporting, analysis and
recording the financial transactions that have occurred for a corporation. A corporation can
have more than one set of books. Each Set of Books has the following:
• Calendar – This is the accounting calendar is separate from the Workday calendar in
Manufacturing.
Chapter 8 - Page 5
• Currency – Each Set of Books will have one functional currency although transactions
can be entered in multiple currencies and are converted.
• Chart of Accounts – Each Set of Books will have one Chart of Accounts that serves as a
foundation for the accounts that related Applications such as Inventory, Purchasing and
Accounts Payable use.
Legal Entity - can be defined as the legal company for which you prepare fiscal or tax reports.
A set of books can have multiple tax entities.
Operating Units - can be divisions. For example, a computer manufacturer may have a
separate divisions for laptop computers, personal computers and small servers. The laptop
computer may represented by one operating unit which have a centralized purchasing and
ordering function. The inventory may actually be received or shipped from a specific
inventory organization but the purchase order is managed centrally so that the supply chain is
optimized. Operating Units affect transaction partitioning in Order Management, Purchasing,
Receivables and Payables.
Inventory Organizations - can be manufacturing facilities, warehouses or any facility where a
company stocks and transacts inventory.
Sub-inventories - represent in Oracle Applications the physical locations within a
manufacturing facility or warehouse where goods are stocked and from where transactions
take place. Sub-inventories are created within Inventory organizations.
Locations - represents a physical address of a facility, office, warehouse or any place else
used by the entity. Inventory organizations use locations to represent the address for the
following:
• Ship to
• Bill to
• Office Site
• Internal Site
• Receiving Site
Each inventory organization must have at least one location.
Chapter 8 - Page 6
Enterprise Structure Example 1
SOB (Functional
SOB 1 (USD) SOB 2 (EURO)
Currency)
Physical Location Florida France
Name of Sub-
FGI FGI
Inventory
Costing Method Standard Average

Consider the following scenario:
• Facility 1 - located in Florida
• Facility 2 - located in Europe
Would this situation be better as one inventory organization or two?
Questions to ask:
• Do the organizations use the same functional currency?
• Do the organizations use same accounting calendar?
• Do the organizations use same chart of accounts?
In this example, if the organizations used different functional currencies, they would have to be
set up as separate inventory organizations. Inventory organizations inherit their functional
currency from the Set of Books. This is not an updateable option. In this example, if the
inventory organizations had different functional currencies, there would also need to be a
second Set of Books. Even if the chart of accounts were the same and the calendar were the
same, the functional currency difference would preclude these two locations from being one
inventory organization.
Chapter 8 - Page 7

Functional
Currency USD SOB 1 SOB 1
(SOB)
Physical Location Florida California
Sub-inventory Finished Goods Finished Goods
Locator Control No No
Costing Method Standard FIFO

Consider a second scenario:
• Facility 1 - located in Florida
• Facility 2 - located in California
Would this situation be better as one inventory organization or two?
Assume that the functional currency issue for both organizations is the same and the decision
has been made for them to report to the same set of books. The same question has to be asked
again, would this be better as one inventory organization or two?
A few questions to ask:
• Do they use the same costing method?
• Is the inventory going to be co-mingled within a sub-inventory for both locations? If so,
how is the physical quantity going to be controlled?
• Are there going to be physical shipments from one organization to another? Do they plan
to use locator control?
If there are going to be physical shipments from one location to another, these will have to be
modeled as sub-inventory transfers or locator to locator transfers within Oracle Inventory. If
Chapter 8 - Page 8
the physical distance is such the physical update is not real time, the company may want to
consider separate inventory organizations. Sub-inventory and locator to locator transfers
update the on hand balances real time and the transaction does not allow for intransit time. If
two inventory organizations were created to model the physical locations, then intransit time
could be modeled using inter-organization transfers.
• Assume the answer to question 1 is no, the two locations want to use different costing
methods. In this scenario, the two facilities would have to be separate inventory
organizations because there is only one costing method per organization.
• Assume the answers to questions 1 and 2 are no and yes respectively but the answer to
question 3 is yes. Although it would not be required, the company may want to consider
two inventory organizations in this scenario. If the company were to implement only one
inventory organization it would require very strong internal control in order maintain
integrity in inventory reporting. Locator control may be an option for two facilities in
different locations but the physical difference and the resulting intransit time would make
this option more challenging. Again, internal control and process control would have to
be very strong in order to make this work.
Chapter 8 - Page 9
Inventory Structure Considerations
Inventory Structure Considerations
Set of Books 2
Location B
Organization A Organization B
Location A
Set of Books 1
Workday Spring Holiday Workday Spring Holiday
Calendar - yes Calendar - no
Costing Standard Costing FIFO
Method Method
One
Planning Min-max Planning Min-max
Organization
Accuracy Sub-inventory or Two ? Accuracy Sub-inventory
Transfer Transfer
between yes between yes
locations locations
Inventory Structure Considerations:

The Enterprise Structure is one of the most important decisions that a company makes during
implementation. Consider the following when determining what the Enterprise Structure will
be. This is not meant to be a complete list but thoughts to help you get started.
Workday calendar: Organizations may have different holidays based on local custom. For
example, one region may give New Year’s Eve as a holiday whereas another region may not.
If the locations are in the same organization they have to have the same workday calendar.
The calendar is by organization not sub-inventory.
Costing method: Costing method is by organization therefore if two locations want different
costing methods, there will have to be two separate organizations.
Planning: Min-max is at the sub-inventory/organization level and reorder point is at the
organization level.
Accuracy: Cycle Count and Physical Inventory are at the Organization and Sub-inventory
level. Considerations include intransit time of transfers and internal control.
Transactions: Physical location of movement may be hard to control. The inventory may be
physically intransit although the transaction has already been updated in the sub-inventory.
Chapter 8 - Page 10
Additional considerations:
• Inventory Organizations must be tied to a set of books, legal entity and an operating unit
• Costing is done by organization based on the item attributes
• Even though you have more than one organization, can do movement between
organizations
• Forecasting is at the organization level
Additional questions to ask:
• What does my company look like in terms of physical layout?
• How does it look from a reporting and legal standpoint?
• Do I have many facilities?
• Where are these facilities physically?
• Do I have sales offices?
• Do I have division offices?
• Do the facilities report to the same reporting entity?
• Are the facilities part of the same legal entity?
• Are the facilities part of the same division but maybe different legal entity?
Chapter 8 - Page 11
Enterprise Structure in Vision
Enterprise Structure in Vision
Set
of
Legal Entity Vision Ops
Books
Operating Unit Vision Ops
D2 M1 M2
Inventory
Organizations
V1
V1Ops
Vision
Chapter 8 - Page 12
Guided Demonstration – Enterprise Structure in Vision Operations
This demonstration will cover viewing the enterprise structure in the Vision Demonstration
Environment. This includes viewing the Multi-Org linking of Set of Books, Legal Entity,
Operating Unit, and Inventory Organization. Additionally, you will view the information
specific to the definition of an Inventory Organization.

(USA)
(N) Inventory > Setup > Organizations > Organizations
1. In the Find Organization window enter the organization name: Seattle Manufacturing
2. (B) Find
− The Organization form appears. This form is used for all organizations in the E-
Business Suite. The information that controls how the organization behaves in the
suite is the classification(s) associated with it. Each organization will have at least
one, and may have more than one classification.
3. Place your cursor on the Organization Classification line that indicates Inventory
Organization.
4. (B) Others
5. In the Additional Organization Information window, select Accounting Information.
6. Use the Tab key to advance into the Pop-up window.

− You should see the following:
− Set of Books: Vision Operations
− Legal Entity: Vision Operations
− Operating Unit: Vision Operations
− This window indicates the relationships within the Multi-Org hierarchy for this
Inventory Organization. This hierarchy will determine where within the hierarchy
financial transactions, such as the Cost of Goods Sold transactions will be
transferred (Set of Books). Also within the hierarchy you are able to see where
system created requisitions will be transferred (Operating Unit), such as with OM
Drop Shipments and Min-Max planning requisitions.
7. Return to the Organization form. Using the (B) Ok to close the Pop-up window, followed by
(B) Ok to close the Accounting information window.
8. (B) Others
9. In the Additional Organization Information window, select Inventory Information.
10. (T) Inventory Parameters (should be the first one)
Chapter 8 - Page 13
− Note the organization code is M1. This value is used in place of the full name of the
organization, Seattle Manufacturing. You will also see that the Item Master
Organization is V1-Vision Operations. It is from this organization that M1-Seattle
Manufacturing will receive all of it’s item definitions. Also on this Tab you will see
the calendar and demand class associated with this inventory organization.
11. (T) Costing Information

− Note the Costing Method is set at Standard. You will also see that the Costing
Method field is greyed out preventing update. Once you save the costing method
for an inventory organization it is not updateable. Additionally note the valuation
accounts on the bottom of the form. These general ledger account combinations are
required for the definition of the inventory organization and cannot be updated after
saving the organization. As an implementation note – identify the correct
accounting combinations for these and all ledger accounts used in defining the
organization prior to beginning the definition of an inventory organization.
12. (T) ATP, Pick, Item Sourcing

− This tab allows us to associate various rules to control how this inventory
organization behaves when using Available to Promise, Picking and Item Sourcing.
These values will override System level parameters, but will in turn be overridden if
there is a specific value set at the item level within this organization.
13. (T) Inter-Org Information

− These transfer charge associations can affect the value of the transfer of goods
between inventory organizations. You will also see the general ledger account
combinations associated with these types of inventory moves.
14. (T) Other Accounts

− Note the Profit and Loss Grouping. There are default Sales and Cost of Goods Sold
accounts indicated for this inventory organization. These accounts can be used by
AutoAccounting in Receivables and Account Generator in Inventory, respectively to
generate the desired general ledger account to be associated with the Revenue and
Cost of Goods Sold transactions. These values can be overridden at the item level.
15. Close Organization Parameters window
Chapter 8 - Page 14
Agenda
Agenda

Chapter 8 - Page 15
Define Units of Measure
Each Box Dozen

Inventory, Vision Operations (USA)
(N) Setup > Units of Measure > Units of Measure
Defining Units of Measure encompasses three distinct areas:
• Unit of Measure
• Unit of Measure Classes
• Unit of Measure Conversions
Unit of Measure
A Unit of Measure (UOM) is a term that you must use, along with a numeric value, to specify
the quantity of an item. For example, “each” is a unit of measure that you would use to specify
the number of units of an item.
Units of Measure are used to define the quantity of an item in Inventory when defining,
stocking, planning, transacting, shipping and counting items. A primary UOM is defined for
each item in Inventory. Once the primary UOM is saved to the item record, it can not be
updated.
Chapter 8 - Page 16
Unit of Measure Classes
A Unit of Measure Class (UOM Class) is a group of units of measure with similar
characteristics. “Weight” can be a UOM Class with UOMs such as kilogram, gram, pound,
and ounce. Each UOM Class must have a base unit of measure assigned to it. The base unit of
measure should be the lowest level in the organization for stocking, costing and planning.
Unit of Measure Conversions
An item may be transacted, ordered, and shipped in an UOM other than the primary UOM.
This is accomplished through conversion of an unit of measure either within an UOM Class or
across UOM Classes.
Considerations
There is not a limit on the number of units of measure than an organization can have, however,
each unit of measure that is to be used must be attached to a unit of measure class and a base
unit of measure.
Units of Measure are defined once when setting up Oracle Applications. You can however,
add additional Units of Measure if needed.
Factors to consider when defining Units of Measure for your items:
• What is the lowest Unit of Measure that you stock, cost and plan?
• What conversions do you want to use for transaction purposes?
• Are you going to define a default UOM for the primary unit of measure for an item?
• What is the process to determine the primary UOM?
• Do you need to define interclass conversions?
Chapter 8 - Page 17
Unit of Measure Example
Unit of Measure Example
1 box = 4 each
1 dozen = 12 each
Unit of Measure Example:

In this example, each is the base unit of measure. A conversion has been created to translate a
transaction of 1 box to 4 each and 1 dozen to 12 each. When transactions are executed for
boxes, this will be translated to each for purposes of stocking, costing and planning. For
example, if 6 boxes were received, a quantity of 24 each would be recorded in on hand
quantity.
Chapter 8 - Page 18
Define Unit of Measure Classes
Inventory uses the base UOM to define conversions

among units of measure within a class
Name Base Unit UOM
Area Square Foot FT2
Fluid Ounce OU
Length Inch IN

(N) Setup > Units of Measure > Classes
The Unit of Measure class (UOM Class) represents a grouping of units that share a common
starting point The UOM Class name is user defined and should be meaningful to the
organization.. For example, if the Unit of Measure class is length, the units of measure in this
class could be inch, foot, and yard. The base unit of measure should be smallest unit of
measure that is used for costing, stocking and planning and is used when converting transaction
quantities.
The UOM column is user defined and is used when doing transactions, ordering or shipping.
Each UOM Class must have a base UOM.
Inventory uses the base UOM to define conversions among UOMs in the class.
Note: Unit of Measure classes are not organization specific.
Chapter 8 - Page 19
Unit of Measure Conversion
1 box = 4 each
1 dozen = 12 each

(N) Setup > Units of Measure > Conversions
A unit of measure conversion is a mathematical relationship between two different units of
measure. For example, 16 ounces = 1 pound, or 2.2 pounds = 1 kilogram.
Units of Measure can be converted for transaction, ordering and shipping once the conversions
have been defined.
Transactions execution defaults to the primary unit of measure for an item unless otherwise
specified. If an alternate UOM is specified, the conversion for purposes of quantity and
costing is based on the conversions defined. The transaction is actually completed in the UOM
specified but is translated for costing and quantity purposes.
There are three types of conversions within Oracle:
• Standard
• Inter-Class (item specific)
• Intra-Class (item specific)
Chapter 8 - Page 20
Standard Conversions
Conversions that occur within the same class, without regard to the item being transacted are
known as Standard conversions. An example of a Standard conversion is one within length,
the conversion centimeters into meters.
Intra-class Conversions
A conversion within the same class, that is specific to the item being converted is known as an
Intra-class conversion. An example of an Intra-class conversion within the UOM Class of
Quantity: The Base UOM for Quantity is Ea. There are two UOMs in the Quantity Class, Each
and Case. The Standard conversion for Case to Each is 1 Case = 24 Each. Item A has a
mapping of 1 Case = 19 Each. All other items transacted by Case will use the 1:24 ratio, but if
Item A is transacted it will use the 1:19 ratio.
Inter-class conversions
Conversions that occur across classes between UOM are known as Inter-class conversions.
Inter-class conversions are item specific. For example, an inter-class conversion would be
pounds to gallons and requires the identification of which items will use this mapping.
Chapter 8 - Page 21
Guided Demonstration - Create an Unit of Measure
This demonstration shows how to create a new Unit of Measure within an existing Unit of
Measure Class.

(USA)
(N) Inventory > Setup > Units of Measure > Units of Measure
1. If prompted, select the V1-Vision Operations inventory organization.
2. (I) New Record
3. Enter the following values to create a new Unit of Measure

− Name: Demo – Length
− UOM: DEM
− This value is used as a short name identifier for the unit of measure within the
E-Business Suite.
− Description: Demo Length
− Base Unit: Unchecked
− This value cannot be updated manually. If you assign this unit of measure as
the base unit of measure for a class, it will automatically be checked. The base
unit of measure is the smallest transactional unit for that class.
− Class: Length
4. (I) Save
5. (B) Conversions
6. (T) Standard (should be the first one)
7. Enter the following values to identify how to convert this unit of measure within this class.
− Unit: Demo – Length
− This should default as we accessed this form from the Define Units of Measure
window. If you had accessed the Conversions window directly you would need
to select the desired unit of measure.
− Class: Length
− This value defaults and is not updateable as we have selected our Unit of
Measure in the first field. This is a standard conversion and remains within the
same class. Intra-Class conversions are defined by item in the (T) Intra-Class.
− Conversion: 12
− This indicates the relationship between our selected unit of measure and the
base unit of measure. In this case there are 12 feet in our Demo-Length unit of
measure.
− Base Unit: Foot
Chapter 8 - Page 22
− This value defaults from the class we have selected.
8. (I) Save
Chapter 8 - Page 23
Practice - Create a Unit of Measure
Overview
In this practice you will learn how to create a unit of measure (UOM) and a conversion between
your UOM and another UOM within the same unit of measure class.
• Create a UOM.
• Create a conversion between two UOM.
Assumptions
• Your instructor will provide login information.
• Replace XX with the number provided by your instructor or your initials.
• Use Order Management Super User, Vision Operations (USA) or comparable Super
User Order Management responsibility.
Tasks
Create a Unit of Measure
1. Create a unit of measure called <XX>-Volume
Create a conversion
2. Create a conversion between your <XX>-Volume and Cubic Foot. This conversion should
be of the ratio 1:15 (1 length equals 15 cubic feet).
Chapter 8 - Page 24
Solution – Create an Unit of Measure and Standard Conversion
1. Navigate to the Units of Measure window.
• (N) Inventory > Setup > Units of Measure > Units of Measure
• If prompted, select the V1-Vision Operations inventory organization.
2. (I) New Record
3. Enter the following values to create a new Unit of Measure

− Name: XX –Volume
− UOM: XXV
− Description: XX Volume
− Base Unit: Unchecked
− Class: Volume
4. (I) Save
Create a conversion
5. Navigate to the Unit of Measure Conversions window
• (B) Conversions
Chapter 8 - Page 25
− Unit: <XX> Volume
− Class: Volume
− Conversion: 15
− Base Unit: Cubic Foot
6. (I) Save
Chapter 8 - Page 26
Defining Inter-class Conversions
1 ton 1 gallon
Base UOM = pound Base UOM = ounce
1 pound = 1 ounce

Interclass conversions enable you to define conversions between UOMs in different classes.
All interclass conversions are item-specific relationships and are from one base unit to another
base unit. Oracle derives conversions between two non base units. The source base unit is the
base UOM of the class that contains the primary UOM for the item. The destination base
UOM is the UOM to which you convert a UOM.
In the example above, the following relationship would exist:
• Base UOM – weight = pound
• Base UOM - liquid = ounce
• 1 pound = 1 ounce
If one were transacting on 1 ton and the base UOM was ounce the following calculation would
be completed:
• 1 ton = 2000 pounds
• 2000 pounds = 2000 ounces
Chapter 8 - Page 27
Agenda
Agenda

Chapter 8 - Page 28
Defining Locations
Defining Locations
Organization #1 Organization #2 Organization #3
Factory, Inc. Factory Outlet, Inc.

500 Oracle Parkway 100 Outlet Lane
Redwood Shores, CA 94065 Outletville, CA 94065
Defining Locations
(N) Setup > Organization > Locations
A location is defined as the physical address of the employees and organizations. Locations
are shared between Inventory, Purchasing and Human Resource Management. When Locations
are flagged as global, they are available to all Business Groups.
Each organization can be associated with only one location, optionally one or more
organizations can be associated with the same location
Locations are not only a physical address but also determine whether the following is
applicable:
• Ship to site – a site that is available to Purchasing for use on a purchase order document.
• Receiving site – a site that is valid for receiving transactions.
• Office site – a site that employees reside at for human resource (HRMS) purposes.
• Bill to site – a site used by Payables, specified on a purchased order document for
invoicing purposes.
• Internal site – a site used when creating an internal requisition.
Chapter 8 - Page 29
Examples of Locations
Examples of Locations
Marketing Office Inventory Organization Payables Office
Manchester Iona Perth

Office Site Ship to Site Office Site
Ship to Site Receiving Site Bill to Site
Receiving Site Bill to Site
Internal Site
Office Site
Example of Locations:
The Manchester location illustrated above is not an inventory organization. It is a marketing
office. However, purchase orders are placed for marketing collateral and the supplier needs to
know the address where the goods are to be shipped. In this example, the supplier will receive
information about where the goods are to be shipped from the purchase order document
(Receiving Site). When the goods are received, the company will know where to deliver the
collateral to based on the Deliver To field of the purchasing document (Ship-To Site). As
employees are based here, human resources will keep track of the employees based upon their
office information (Office site).
The Perth location above is payables office not an inventory organization. It is an office as
well. However, invoices need to be paid and the supplier needs to know where to send the
invoices. A Bill To site represents the address where the invoices are sent.
The inventory organization as illustrated above is a Ship To Site, Receiving Site, Bill To Site,
Internal Site and Office Site. This location would do all of the above as well as keep track of
inventory balances, plan for inventory and do transactions.
One has to determine where the locations physically are and map the locations in Oracle
Applications to those physical addresses.
Chapter 8 - Page 30
Guided Demonstration - Create a Location
This demonstration shows how to define a location within the enterprise structure. Locations are
physical entities like warehouses, bill-to and ship-to addresses.

(USA)
(N) Inventory > Setup > Organizations > Locations
Create a Location
1. Enter the following values to create a new location:

− Name: Demo Manufacturing
− Description: Demo Manufacturing
Note: Uncheck the Global check box if you want the location to only be available within
the default Business Group of your current responsibility. Accept the default if you want
the location to be a global location and therefore available to all Business Groups.
2. (T) Address Details

− Address Style: United States.
− Address:
Field Value
Address 13400 West Ocean Air Drive
City San Diego
State CA
Zip 92130
County San Diego
3. (T) Shipping Details

− Contact: Daugherty, Mr. John
− Ship-To Location: Demo Manufacturing (will default)
− Usually the same as the location Name. You could select a separate, previously
defined Ship-To Location--for example, if you wanted to create a location
Name, Office A, and specify Receiving Dock A as its Ship-To Location. Note,
however, that once you specify a separate Ship-To Location, you can no longer
enable the location Name as a Ship-To Site.
− Ship-To: Checked
− Select this option to make the location Name a valid ship-to organization on a
purchase order or requisition.
− Bill-To: Checked
Chapter 8 - Page 31
− Select this option to make the location Name a valid bill-to site. The Bill-To
Site, which is used by Payables, is specified on a purchase order header.
− Receiving Site: Checked
− Select this option to make the location a valid receiving Location when creating
a receipt or receiving transaction.
− Internal Site: Checked
− Select this option to make the location a valid internal ship-to location when
creating an internal requisition
− Office Site: Checked
− Select this option to indicate that this location Name is an office site, such as a
field office.
4. (T) Other Details

− Inventory Organization: Blank
Note: Leaving this field blank will allow this location to be used with multiple
inventory organizations. Specifying an inventory organization will ensure that the
location is ONLY used with the specified inventory organization.
− Tax Name = CA-Sales Tax
5. (I) Save
6. Close the Locations window
Chapter 8 - Page 32
Practice - Create a Location
Overview
In this practice you will create a location.
Assumptions
• If you are not attending training at an Oracle University or Authorized Partner
Education Center, you must have access to an Oracle Application Vision database or
comparable training test instance on which to complete this Practice.
• Replace XX in the Practice with a unique identifier such as your initials or a number.
(For Instructor Led Training classes, this number will be assigned to you). This is
necessary in order to create unique records within the database when performing the
Practice.
Tasks
Create Location
Responsibility = Inventory, Vision Operations (USA)
1. Navigate to the Locations window
• (N) Setup > Organizations > Locations

− Name: XX-Location
− Global: Checked
2. Add a location with the following address details

− Address Style: United States
− Enter address information according to the following table:
Field Value
City San Diego
State CA
Zip 92130
County San Diego
Chapter 8 - Page 33
Solution - Create a Location
Create Location

− Global: Checked

Field Value
City San Diego
State CA
Zip 92130
County San Diego
3. (B) OK
− Leave all defaults
4. (I) Save
Chapter 8 - Page 34
Agenda
Agenda

Chapter 8 - Page 35
Organizations include but are not limited to

manufacturing facilities, warehouses,
distribution centers and branch offices.
Inventory Organizations:
An organization must be classified as an Inventory Organization in order to do inventory based
transactions, planning and receiving.
As the information in the database is identified by a single Inventory Organization at a time,
you must choose an organization when you access Inventory for the first time during a session.
All subsequent activity uses this organization as your current organization.
• The organization name appears in the title bar of all windows for organization specific
entities such as Inventory, Bill of Material and Work in Process.
• One can change their current organization at any time with the Change Organization
window.
You can limit organization access by responsibility.
Chapter 8 - Page 36
Inventory Organization Setup
PO and
Receiving
Set of Books
AR and AP
Inventory
Organization
Shipping
Legal Entity
Operating Unit

(N) Setup > Organizations > Organizations
At least one inventory organization must be established, although it is advisable to have more
than one. One will be needed to represent the master parts list and one will be needed for
execution and reporting. Establishing two inventory organizations when you implement gives
you greater flexibility for expansion as time passes.
When defining organizations, you will need to identify the type, or classification associated to
the organization. This is how you will indicate that the organization is to be used as an
Inventory Organization.
There are additional elements which must be defined that allow the Inventory Organization to
operate within the environment. Some of the elements represent default values that will be
used when creating transactions, others are used to establish where an Inventory Organization
resides within the Inventory and Multiple Organizations hierarchies. These elements fall into
one of four categories:
• Accounting Information
• Customer/Supplier Association
Chapter 8 - Page 37
• Inventory Information
• Receiving Information
Accounting Information
This is how you identify where this Inventory Organization sits within the Multiple
Organizations hierarchy. Each Inventory Organization is tied to a Set of Books, a Legal Entity
and an Operating Unit
Customer/Supplier Association
This relationship is used for Internal Orders. For more information on this topic, please refer to
the Advanced Topic: Internal Orders
Inventory Information
Inventory Information includes parameters that control how this organization behaves relating
to Inventory transactions. These parameters identify a number of elements including, but not
limited to:
• Identifying the Master Inventory Organization for this organization
• Costing information
• Rules regarding Available to Promise, Picking, Revision, Lot and Serial control data
• Default General Ledger accounts
Receiving Information
Each Inventory Organization also has the ability to define parameters for how receiving
activities will default for that organization.
Additional question to ask:
• What does your physical structure look like? Inventory organizations should mirror what
is physically happening.
Copying organizations
It is possible to copy setup data from one organization to another if creating multiple
organizations. This will copy items you select, sub-inventories, departments, resources, Bills
of Material (BOM), routings, WIP Parameters and other setups. This is done via a concurrent
request.
Chapter 8 - Page 38
Guided Demonstrations - Create an Inventory Organization
This demonstration shows how to define an Inventory Organization.

(USA)
(N) Inventory > Setup > Organizations > Organizations
1. In the Find Organization window, select (B) New to create a new organization.
− The Organization form appears. This form is used for all organizations in the E-
Business Suite. .
2. Enter the following values to create a new organization:

− Name: Demo-Manufacturing
− This is the long name for the organization.
− Type: Plant
− This is a list of values that is used for reporting purposes. There is no
functionality tied the value.
− Location: blank
− This is the physical address of the organization. If this organization uses more
than one physical location you are able to leave the field blank. If you intend to
use this organization as an inventory organization it must have sole usage of a
location. Meaning no other organization classified as an inventory organization
may have that location placed in the location field. If a location is selected, the
Address field information will default with the information from the address
defined for that location. (separate setup step).
− Internal: Internal
− This value defaults. Internal indicates this is our own (the company
implementing Oracle) organization. External indicates the organization is
outside our company.
3. (I) Save
4. Navigate to the Organization Classification region.
5. Select Inventory Organization from the list of values and enable the selection.
− The information that controls how the organization behaves in the suite is the
classification(s) associated with it. Each organization will have at least one, and may
have more than one classification
6. (I) Save
7. (B) Others
8. In the Additional Organization Information window, select Accounting Information.
Chapter 8 - Page 39
9. Use the Tab key to advance into the Pop-up window.
10. Enter the following values into the Accounting Information Pop-up window:
− This window indicates the relationships within the Multi-Org hierarchy for this
Inventory Organization. This hierarchy will determine where within the hierarchy
financial transactions, such as the Cost of Goods Sold transactions will be
transferred (Set of Books). Also within the hierarchy you are able to see where
system created requisitions will be transferred (Operating Unit), such as with OM
Drop Shipments and Min-Max planning requisitions.
11. (I) Save
13. (B) Others
14. In the Additional Organization Information window, select Inventory Information.
15. (T) Inventory Parameters (should be the first one)
16. Enter the following field values:

− Organization Code: DM1
− This is the short code reference that will be used to identify this inventory
organization in transaction forms.
− Item Master Organization: Vision Operations
− This defaults to be the defined organization. Changing the value associates the
new inventory organization with a previously defined inventory organization.
This determines from where the organizations item definitions will come from.
− Calendar: Vision01
− This identifies the working calendar for this inventory organization.
− Leave all other fields as defaulted.

− Costing Method: Standard
− This value determines how cost will be calculated for this inventory
organization. You may choose between Standard, Average, FIFO and LIFO.
Once the value is saved you will not be able to update it.
− Transfer to GL
− This determines how much information is transferred to the general ledger. If
you select Detail, all transactional information is sent in a detail format, while
Chapter 8 - Page 40
Summary will summarize the transactions by general ledger account and then
transfer the information.
− Valuation Accounts
Account Type Account
Material 01-000-1410-0000-000
Implementation Note: obtain all of the necessary account combinations before

beginning to define inventory organizations.
20. Enter the following field values

− Receiving Accounts
Purchase Price Variance 01-540-5210-0000-000
Invoice Price Variance 01-540-5220-0000-000
Inventory AP Accrual 01-000-2215-0000-000
− These accounts are required to define an inventory organization, but they are
not used as a part of the order to cash process.
− Profit and Loss Accounts
Sales 01-540-4160-0000-000
Cost of Goods Sold 01-540-5200-0000-000
− These accounts are used as a part of the order to cash process. Both can be
overridden at the item level.
− The Sales account can be referenced from the item level (this value will default
there) by AutoAccounting in Receivables.
− The Cost of Goods Sold (COGS) account can be (and is by default) referenced
by Account Generator when creating the COGS account combination during
the shipping process.
21. (I) Save
22. Close Organization Parameters window.
23. (B) Others
Chapter 8 - Page 41
24. In the Additional Organization Information window, select Receiving Information.
25. Enter the following field values in the Receipt Date region:
− Days Early: 5
− Days Late: 5
− Action: Warning
− These dates are used as a reference for when is a receipt considered “on time”.
If the receipt falls outside the designated time frame the setting of Warning will
cause a pop-up window to indicate to the receiver that the receipt is outside of
this time frame. They may however still choose to receive the goods.
26. Enter the following field values in the Over Receipt Control region:
− Tolerance: 5
− Action: Warning
− These fields allow us to control how much excess quantity we are able to
receive over the quantity expected from the associated purchase order
document. (all receipts within Oracle must be associated with a purchase order
document).
27. Enter the following field values in the Miscellaneous region:

− Allow Substitute Receipts: Checked
− Allow Unordered Receipts: Checked
− Allow Express Transactions: Checked
− Allow Cascade Transactions: Unchecked
− Allow Blind Receiving: Unchecked
− Receipt Routing: Standard
− Enforce Ship To: None
− ASN Control Action: None
− These fields control the behavior of the receipt, what is allowed versus
disallowed. For more information see the 11i Procure to Pay Fundamentals
course.
28. Enter the following field values in the Receipt Number Options region:
− Action: Automatic
− Type: Numeric
− Next Receipt Number: 1
− These fields control the transaction numbering functionality for the receipt. For
more information see the 11i Procure to Pay Fundamentals course.
29. Enter the following field values in the lower section of the Receiving Options form:
− Receiving Inventory Account: 01-000-1410-0000-000
30. (I) Save
Chapter 8 - Page 42
Overview
.In this practice you will learn how to create an inventory organization.
• Create an Inventory Organization
• Assign required parameters for the new Inventory Organization.
Assumptions
Tasks
Create an Inventory Organization
1. Create an Inventory Organization XX-IO.

− This inventory organization represents an outlet for your company. As you have not
decided whether to use one or many inventory organizations to represent your
outlet, do not assign a physical address to the organization.
Assign Required Parameters for the Inventory Organization
2. This Inventory Organization is a part of the current Multi-Org environment. It should be

associated with the Vision Operations Set of Books, Legal Entity and Operating Unit.
3. The inventory team has decided that there will be one item master and this inventory
organization, XX1, should use the Vision Operations master organization for its item
definitions. They have also indicated that the Vision01 calendar will be appropriate for the
new outlet site.
4. You have been told that this will be an organization that uses Average Costing and will be
transferring data to the general ledger in summary. The Controller has given you the
following table with the appropriate general ledger combinations for your organization:
Chapter 8 - Page 43
Material 01-000-1410-0000-000
Outside Processing 01-000-1450-0000-000
Material Overhead 01-000-1420-0000-000
Overhead 01-000-1430-0000-000
Resource 01-000-1440-0000-000
Expense 01-000-2225-0000-000
Question: Are there any differences between the information required for Standard Costing and
Average Costing?
5. Additionally the Controller has provided the following additional general ledger accounts as
requested in your memo.
Sales 01-540-4160-0000-000
Cost Variance Account 01-540-5315-0000-000
Receiving Inventory Account 01-000-1410-0000-000
6. The inventory manager has left you a series of instructions for how receipts should be
handled at this outlet:
− All receipts must be received within a 2 day window of their expected date or they
are to be returned to the supplier.
− She will accept a 5% excess on any purchase order line, but wishes to be informed
that the amount is greater than the expected quantity.
− She will accept substitute parts, but not unordered lines.
− All receipt routing should follow a 2 step process.
− We will not be enforcing the shipping location, nor will we use ASN functionality.
− Our first receipt number for this outlet should be 1000.
Chapter 8 - Page 44
Create an Inventory Organization
1. Navigate to the Define Inventory Organization window.
• (N) Inventory > Setup > Organizations > Organizations
• If prompted, select the V1- Vision Operations inventory organization
2. (I) New Record
3. Enter the following values to create a new inventory organization

− Name: XX-IO
− Type: Outlet
− Location: blank
− Internal: Internal
4. (I) Save
5. Navigate to the Organization Classification region.
6. Select Inventory Organization from the list of values and enable the selection.
7. (I) Save
Chapter 8 - Page 45
Assign Required Parameters for the Inventory Organization
8. Navigate to the Accounting Information window
• (B) Others
• Select Accounting Information
• Use Tab key to advance into the Pop-up window
9. Enter the following values into the Accounting Information Pop-up window:
10. (I) Save
12. Navigate to the Inventory Information window
• (B) Others
• Select Inventory Information
• (T) Inventory Parameters (should be the first one)

− Organization Code: XX1
− Leave all other fields as defaulted.
Chapter 8 - Page 46

− Costing Method: Average
− Transfer to GL: Summary
− Valuation Accounts
Material 01-000-1410-0000-000
Chapter 8 - Page 47
Overhead 01-000-1430-0000-000
Resource 01-000-1440-0000-000
Expense 01-000-2225-0000-000
Question: Are there any differences between the information required for Standard Costing and
Average Costing?
− Yes. When you choose to utilize Average Costing you must enter more valuation
accounts to financially identify the transactions.
Chapter 8 - Page 48
17. Enter the following field values
− Receiving Accounts
− Profit and Loss Accounts
Sales 01-540-4160-0000-000
− Cost Variance Account
18. (I) Save
Chapter 8 - Page 49
19. Close Organization Parameters window.
20. Navigate to the Receiving Information window
• (B) Others
• Select Receiving Information
21. Enter the following field values in the Receipt Date region:
− Days Early: 2
− Days Late: 2
− Action: Reject
22. Enter the following field values in the Over Receipt Control region:
Chapter 8 - Page 50
− Tolerance: 5
− Action: Warning
23. Enter the following field values in the Miscellaneous region:

− Allow Substitute Receipts: Checked
− All others Unchecked
− Receipt Routing: Standard Receipt
− Enforce Ship To: None
− ASN Control Action: None
24. Enter the following field values in the Receipt Number Options region:
− Action: Automatic
− Type: Numeric
− Next Receipt Number: 1000
25. Enter the following field values in the lower section of the Receiving Options form:
− Receiving Inventory Account: 01-000-1410-0000-000
26. (I) Save
Chapter 8 - Page 51
Setup Considerations for Order Management
Setup Considerations for Order

Management
Which organization
will do the shipment?
Inventory Inventory
Organization #1 Organization #2
Setup Considerations for Order Management

(N) Setup > Parameters
The setup of Order Management (OM) requires the identification of a logical entity listing all
the items you sell to your customers. This is known as an Item Validation Organization. Item
Validation Organizations are Inventory Organizations by definition within Oracle. OM
requires a minimum assignment of one Item Validation organizations per Set of Books. If your
setup requires more flexibility, a maximum of one Item Validation Organization per Operating
Unit is can be assigned. When using multiple Item Validation Organizations, all of the
organizations can share the same Item Master Organization.
Chapter 8 - Page 52
Agenda
Agenda

• Options in Defining Enterprise Structure
Chapter 8 - Page 53
Establishing Inventory Parameters
Execution
Inventory Organization #1
Financial
Reporting

(N) Setup > Organizations > Parameters
Inventory Information includes parameters that control how this organization behaves relating
to Inventory transactions. These parameters identify a number of elements including, but not
limited to:
• Organization code: Each organization will have a three letter code which will appear in
the organization specific windows of each application.
• Item Master Organization: This is considered the parts list and is used by Order
Management and Purchasing when determining what parts can be shipped or procured.
There should not be any transactions done in the Item Master. This should be a listing of
parts only. Note: When one defines the parameters for an organization, the organization
being created will default in the item master field. It is a conscious effort on the part of
the user to change this to the organization which represents the item master.
Note: Each window title will identify the organization you are defining parameters for. If you
wish to change the organization, use the Change Organization form, accessed from the
Navigator.
Chapter 8 - Page 54
Guided Demonstration - Establish Inventory Organization
Parameters
Assumptions
Login using the following User Name and password:
• User name: MFG
• Password: welcome
Responsibility: Manufacturing and Distribution Manager

(N) > Inventory > Setup > Organization > Parameters}
This demo will cover establishing the inventory parameters and the relationship between the
inventory organization and the set of books, legal entity, and operating units. Additionally,
receiving parameters will also be established. This information is used to provide defaults in the
event that more specific inforamtion is not defined. However, if information is entered at a more
detailed level, then this information is overriden. For example, if an ATP rule is established at
the organization level and at the item level, a different ATP is chosen, then the item level rule
will take precedence. Think carefully when determine the parameters. The financial
implications on financial reporting via the account numbers and the operations default could
have a huge impact on your business.
1. You see a find screen when you navigate as per above.

− Name: XX-Manufacturing
2. Choose find.
Your organization should appear.
3. Navigate to the Organization Classifactions region and put your cursor on Inventory
Organization.
4. Choose Others.
5. A list entitled Additional Information will appear. Choose Accounting Information from the
list.
6. Put your cursor in the column to the left and tab. A box will appear that has the following
lines:
− Set of Books
− Legal Entity
− Operating Unit
7. The values will be as follows:
Chapter 8 - Page 55
8. Save your work.
9. Return to the Organization Classifications.
10. Choose others
11. Choose Inventory Information from the list.
12. (T) Inventory Parameters

− Organization Code: XXO
− Item Master Org: Vision Operations
− Demand Class: West US
− Move Order Timout: 0 days
− Accept all other defaults

− Costing Organization: XX-Manufacturing
− Costing Method: Standard
14. 31.Valuation Accounts:

− Material: 01-000-1410-0000-000
− Outside Processing: 01-000-1450-0000-000
− Material Overhead: 01-000-1420-0000-000
− Overhead: 01-000-1430-0000-000
− Resoruce: 01-000-1440-0000-000
− Expense: leave blank
15. (T) ATP, Pick, Item Sourcing

− ATP Defaults Rule: Standard (this will be the rule in absense of a rule at the
item level)
− Picking Defaults Rule: RevSub
− Item – Sourcing Detail: leave blank

− Purchase Price Variance: 01-540-5210-0000-000
− Invoice Price Variance: 01-540-5220-0000-000
− Inventory AP Accrual: 01-000-2215-0000-000
− Sales: 01-540-4160-0000-000
− Cost of Goods Sold: 01-540-5200-0000-000
17. Save your work.
Chapter 8 - Page 56
18. Return to the first page and choose others.
19. A list will appear. Choose receiving information. Below are suggestions on how to fill out
this form. You can enter your own information if necessary.
− Days early: 4
− Days late: 2
− Action: Warning
− Overreceipt tolerance: 10%
− Action: Warning
− Receipt Routing: Direct
− Receiving Accrual: 01-000-1410-0000-000
− Accept all other defaults.
20. Save your work.
Chapter 8 - Page 57
Practice - Define Shipping Parameters
Overview
In this practice you will define shipping parameters.
Assumptions
Practice.
Tasks
Define Shipping Parameters
Responsibility = Order Management Super User, Vision Operations (USA)
1. Navigate to the Shipping Parameters window
• (N) Shipping > Setup > Shipping Parameters

− When prompted, select your inventory organization, XX1
2. Specify the following general shipping parameters

− Weight UOM Class: Weight
− Volume UOM Class: Volume
− Percent Fill Basis: Weight (should default)
3. Specify the following pick/release parameters

− Release Sequence Rule: Departure Date
− Default Pick Slip Grouping Rule: Order Number
− Print Pick Slip: At End
− Default Stage Subinventory: XX-Stores
− Auto Allocate: Checked
− Autocreate Deliveries: Checked
− Leave all other defaults
4. Specify the following shipping transaction parameters

− Weight/Volume Calculation: Manual
− Container Inventory Control: Optional
− Goods Dispatched Account: 01-000-1410-0000-000
Chapter 8 - Page 58
Solution - Define Shipping Parameters

2. (T) General
3. (T) Pick Release

4. (T) Shipping Transaction

5. (I) Save
Chapter 8 - Page 59
Chapter 8 - Page 60
Inventory Parameters and Execution
Serial,
Lot or
Revision
Control?
Determine Organization
level default controls
using the Inventory
Parameters screen Locator
Control?

(N) Setup > Organizations > Parameters > (T) Inventory Parameters and (T) Revision, Lot,
Serial
The controls established for an item or organization will be used in the products which impact
Inventory. These products include Work in Process, Order Management, and Purchasing.
Locator control determines at the organization level whether or not you want to require a
locator to be entered when doing a transaction from a sub-inventory. If an organization has
locator control enabled, when a purchase order delivery is executed, a locator will be required.
Additionally, when a shipment is executed, a locator will be required as well.
Serial, Lot and Revision Control affect specific item transactions within the enterprise.
For additional information on controls, including Lot, Locator, Revision and Serial Number,
refer to the Oracle Inventory User’s Guide.
Chapter 8 - Page 61
Inventory Parameters and Financial Impact
Inventory Transactions Default valuation account

Purchase Order Deliveries Purchase Price Variance
Inter-org Transfers Inter-org AR, AP, PPV
Shipments Cost of Goods Sold and
Accounts Receivable

(N) Setup > Organizations > Parameters
(T) Costing Information
Costing method – You must determine whether Standard, Average, First In First Out (FIFO) or
Last In First Out (LIFO) best meets the needs of your organization. If you select Average
costing as your method, you will also have to determine the cost type for valuation purposes.
Note: This can not be changed once the first transaction has been valued in the inventory
organization.
The valuation accounts are default valuation accounts for sub-inventories in a standard costing
organization. These account numbers are derived from the chart of accounts for the Set of
Books. The valuation accounts can all be the same or they can be different. This is determined
by the organization and their reporting needs. These account numbers will map to financial
reporting in General Ledger.
In organizations that use Average, FIFO and LIFO, these accounts will be also be the accounts
for the sub-inventories. There is only one set of valuation accounts for Average, FIFO and
Chapter 8 - Page 62
LIFO organizations. The exception is if you have Warehouse Management System (WMS)
installed. One can establish accounts by cost group. WMS is a separate license.
(T) Inter-org Information
If your organizations ship to and from each other, one will need to determine the inter-
organization accounts to be used as a default. These can be changed by inter-org relationship.
The account numbers are derived from the chart of accounts for the set of books. The accounts
can all be the same or different based on the needs of the organization.
A question to ask: How do I want to map my account numbers to give the best information in
financial reporting?
Accounts will need to be established for the following:
• Transfer credit – reduction in expense for the sending organization
• Purchase Price Variance (PPV) – The difference between the sending organization’s
standard cost and the receiving organization’s standard cost. This is not applicable in an
Average, FIFO or LIFO organization.
• Receivable account – the account that records what is due from the receiving
organization
• Payable account – the account that records what is due from the sending organization
• Intransit account – the inter-organization shipments that have not yet been received
(T) Other Accounts
• Purchase Price Variance (PPV) – defined as the difference between the standard cost and
the purchase price on the purchase order document at the point of delivery into an
inventory organization. This is not applicable for an Average, FIFO or LIFO costing
organization.
• Invoice Price Variance (IPV) – defined as the difference between the purchase price at
the point of delivery and the invoice price at the point of approval. This is applicable for
Standard, Average, FIFO and LIFO Costing organizations
• Inventory AP Accrual account – This account is credited when a purchase order line is
received on the dock.
• Sales account – This account is used by Receivables when invoicing if a sales account is
not defined at the item level.
• Cost of Goods Sold (COGS) – This account is used by Inventory when a shipment is
executed from Shipping Execution and decremented in Inventory.
• Average Cost Variance Account – Inventory valuation error caused by issuing inventory
before receipts are completed. This results when negative balances are allowed.
Chapter 8 - Page 63
Inventory Parameters and Order Management
Inventory Parameters and Order

Management
Determine ATP rules

Determine Picking Rules
Sub-inventory order for Picking Rules
Locator Order for Picking Rules
Inventory Parameters and Order Management

(N) Setup > Organizations > Parameters > (T) ATP, Pick, Item-Sourcing
ATP Defaults – If you are going to run Available to Promise (ATP) for the organization,
determine what the ATP rule will be at the organization level. This can be overridden at the
item level. The creation of the rule itself will determine what is included when ATP is
calculated. This rule must be defined before selecting on the Parameters form. What do you
want included in the rule?
Picking Defaults – This determines the order that Order Management uses when picking from
this organization. The rule establishes whether to use revision, lot, and / or sub-inventory
information in picking inventory. These default rules must be defined prior to selecting on the
Parameters form. You will also be able to determine whether you want pick confirmation to be
required.
Shortage Parameters for Order Management – tells the system whether to check shortages
when pick release is run and to notify either the order creator or item planner.
Chapter 8 - Page 64
Agenda
Agenda

Chapter 8 - Page 65
Sub-Inventories
Sub-Inventories
Sub-Inventories are subdivisions of an organization

and can represent the physical locations such as
storerooms. Sub-inventories can also represent
logical collections of items, such as finished goods
inventory or reject material.
Floor Stock Sub-inventory Finished Goods Sub-inventory
Sub-Inventories:
Sub-Inventories are used for transactions, physical inventory counts and cycle counts.
Considerations for sub-inventory definition:
• Do you want the sub-inventory to be reflected on the balance sheet and in the inventory
valuation? If so, this needs to be an asset sub-inventory. If the answer is no, do you want
to track quantity? If yes, then enable quantity tracked
• Do you want to be able to reserve items in this sub-inventory for Sales Orders? If so,
enable reservable.
• Do you want this sub-inventory to be included in the Available to Promise calculation?
If so, enable the ATP box.
• What does the physical layout of your warehouse or inventory area look like?
The accounts tab shows is where the account numbers used in general ledger reporting are
defined for a standard costing organization. These accounts default from the organization
parameters and can not be updated for an Average, FIFO or LIFO costing organization.
Chapter 8 - Page 66
Guided Demonstration - Create a Sub-Inventory
This demonstration shows how to create a subinventory for the Demo-Manufacturing inventory
organization created in an earlier demonstration in this lesson.

(USA)
(N) Inventory > Setup > Organizations > Subinventories
1. If your organization does not reflect DM1-Demo Manufacturing, Navigate to the Change
Organizations window.
• (N) Change Organization
• Select DM1 – Demo Manufacturing from the list of values
• Return to Subinventories window and verify DM1 is referenced in the window title
2. Navigate to the Detail window for the Subinventory
3. (B) Open
4. (T) Main (should be the first one)
5. Enter the following values to create a new subinventory:

− Name: Demo-FGI
− Description: Finished Goods Sub-Inventory
− Status: Active
− Default Cost Group: Accept default
− Quantity tracked :Checked
− Indicates that each transaction updates the quantity on hand for the
subinventory. If you leave this blank, on-hand balances are not maintained and
you cannot check or update the Asset Inventory, Include in ATP, Reservable or
Nettable options.
− Asset Sub-inventory: Checked
− Indicates the value of this subinventory will be maintained on the balance sheet.
− Include in ATP: Checked
− Include items from this subinventory in ATP calculations
− Allow reservation: Checked
− Include this subinventory when performing reservation activities.
− Nettable: Checked
− Indicates that planning uses the on-hand balance from this subinventory as
available.
− Locator control: None
Chapter 8 - Page 67
− You can only select this field if locator control was defined at the subinventory
level in the Organization Parameters window for this inventory organization.
6. (T) Accounts
Material 01-000-1410-0000-000
Overhead 01-000-1430-0000-000
Resource 01-000-1440-0000-000
Expense 01-520-2225-0000-000
7. (I) Save
Chapter 8 - Page 68
Practice - Create a Sub-Inventory
Overview
In this practice you will learn how to create a sub-inventory.
• Create Sub-Inventory
Assumptions
• You have completed the Practice: Create Inventory Organization. If you have not,
substitute M1-Seattle Manufacturing for the requested inventory organization.
Tasks
Create a Sub-Inventory
1. Create a sub-inventory called <XX>-Stores.

− This sub-inventory is to be used by ATP and planning. It is a subinventory for
which we will need balance sheet information. It will not use locator control.
− The accounting team has given you the following information regarding the general
ledger accounts for this sub-inventory:
Material 01-000-1410-0000-000
Overhead 01-000-1430-0000-000
Resource 01-000-1440-0000-000
Expense 01-520-2225-0000-000
Chapter 8 - Page 69
Solution – Create a Sub-Inventory
Create a Sub-Inventory
Responsibility: Order Management Super User, Vision Operations (USA)
1. Navigate to the Define Sub-inventory window for your inventory organization
• (N) Inventory > Setup > Organizations > Subinventories
• If your organization does not reflect XX1-XX IO, Navigate to the Change
Organizations window
• (N) Change Organizations
• Select XX1 – XX IO from the list of values
• Return to the Subinventories window and verify XX1 is referenced in the window
title.
2. Navigate to the Detail window for the subinventory window
• (B) Open
3. Enter the following values in (T) Main

− Name: XX-Stores
− Description: XX Stores
− Status: Active
− Default Cost Group: Accept default
− Quantity tracked: Checked
− Asset Sub-inventory : Checked
− Include in ATP: Checked
− Allow reservation: Checked
− Nettable: Checked
− Locator control: None
Chapter 8 - Page 70
4. Enter the following values in (T) Accounts
Material 01-000-1410-0000-000
Overhead 01-000-1430-0000-000
Resource 01-000-1440-0000-000
Expense 01-520-2225-0000-000
5. (I) Save
Chapter 8 - Page 71
Chapter 8 - Page 72
Summary
Summary

• Describe Enterprise Structure in Oracle
Applications
• Define Units of Measure
• Define Locations
• Setup Inventory Organizations
• Establish Inventory Parameters
• Define Sub-inventories
Chapter 8 - Page 73
Chapter 8 - Page 74
Enter Items
Chapter 9
Enter Items
Chapter 9 - Page 1
Enter Items
Enter Items
Enter Items
Chapter 9 - Page 2
Objectives
Objectives
After completing this module, you should be able to

do the following:
• Describe how items integrate in the Order to Cash
Life Cycle
• Define items and item attributes
• Explain item implementation considerations
Enter Items
Chapter 9 - Page 3
Agenda
Agenda
• Overview of the items

• Defining items and item attributes
• Explaining item implementation considerations
Enter Items
Chapter 9 - Page 4
What is an Item?
What is an Item?
Components
Assembly Supplies
Option Classes
What is an Item?
An Item is defined as anything you make, purchase, or sell, including components,
subassemblies, finished products, or supplies. Oracle Manufacturing also uses items to
represent planning items that you can forecast, standard lines that you can include on invoices,
and option classes you can use to group options in model and option class bills.
Enter Items
Chapter 9 - Page 5
Oracle Applications Use Items

Depot Repair
Inventory
BOM/ENG Accounts
Receivable
Material Accounts
Planning Payable
Advanced Manufacturing
Supply Chain Scheduling
Planning Items
Project
Work in
Manufacturing
Process
Cost Purchasing
Management
Quality Sales
Order Enterprise Asset

Management Management

The applications in the diagram above is not all inclusive but is meant to give an understanding
that the item definition is used in many different places in Oracle. Oracle Applications use a
common data model and the item definition is an example of the a common data element that is
used in many applications. It is the common data element that make the integration across e-
Business suite seamless.
Each of applications use the item in different ways. This will be described on the next page.
Enter Items
Chapter 9 - Page 6
How Do Oracle Applications Use Items?
How Do Oracle Applications Use Items?
Production Receiving Invoices to Shipments

Customer
Invoices from
Suppliers
How do Oracle Applications Use Items?

Inventory: To stock, plan, cost and transact.
Engineering and Bill of Material: To create a bill of materials and routing as well as a
component on a bill of materials.
Material Planning: With the planning engine, which makes suggestions as to discrete jobs
and purchase requisitions based on supply and demand.
Quality: Used a the basis for the collection of quality data as you do move transactions in
Work in Process, complete assemblies in Work in Process, receiving and inspection
transactions in Purchasing.
Cost: To establish a cost based on one of the four perpetual costing methods (standard,
average, FIFO and LIFO) and uses this as a foundation for valuing transactions.
Purchasing: To complete purchase orders, requisitions, request for quotes, quotations and
receipts.
Work in Process: As the basis to create work orders.
Accounts Payable: As the basis for Supplier invoices.
Accounts Receivable:As the unit to bill customers.
Enter Items
Chapter 9 - Page 7
Order Management: To represent goods and services placed on Sales Orders.
Shipping Execution: To ship to a customer or another organization
Advanced Supply Chain Planning and Scheduling: To plan and schedule based on criteria
supplied.
Project Manufacturing: To link a transaction to a project and task through purchase order
receipts, work order transactions, and inventory transactions.
Sales: To create quotes.
Depot Repair: To create non-standard work orders
Manufacturing Scheduling: To schedule a work order or job based on material and resource
constraints. Resource instances are created as items.
Enterprise Asset Management: To create asset activities, asset groups and rebuildables using
the item definition in Inventory.
Note: This list is not all inclusive but gives a general idea of how important the item is in
Oracle Applications.
Enter Items
Chapter 9 - Page 8
Item Attributes
Item Attributes
Enterprise
Bill of
Main Inventory Asset
Material
Management
Physical
Costing Purchasing Receiving
Attributes
MRP/MPS Work in
General Planning Lead Time
Planning Process
Order Management Invoicing Service Web Option
Item Attributes
Item Attributes are the characteristics of an item. When these attributes are combined in an
item definition, they tell Oracle how the item can be used to execute business process. Item
characteristics include whether an item can be inventory item or expense item; stockable;
manufactured or purchased; planned, have a lead time; as well as many other attributes..
Additionally, an item can be a piece of equipment or a vehicle.
When defining an item, you select Item Attributes form fields on multiple tabs on the Item
Master form which divide the attributes into functional areas. Those tabs with a few examples
are as follows:
• Main: Unit of Measure, Item Type, Long Description.
• Inventory: Inventory Item, Stockable, Transactable, Item controls such as Lot, Locator,
Serial.
• Bill of Material: BOM type.
• Enterprise Asset Management: Asset Groups, Asset Activities, Rebuildables, Activity
Types.
Enter Items
Chapter 9 - Page 9
Note: This tab is not available for all implementations. It will only be visible for clients
who have installed Family Pack G or implementing Oracle Applications Release
11.5.6 or later.
• Costing: Costing Enabled, Cost of Goods Sold Account.
• Purchasing: Purchased, Purchasable, List Price, Expense Account, Invoice Matching.
• Receiving: Receipt Routing, Over Receipt Tolerance. Allow Substitute Receipts
• Physical Attributes: Dimensions, Weight, Volume, Container, Type
• General Planning: Make or Buy, Inventory Planning (Min-Max)
• MRP/MPS Planning: MRP vs. MPS Planned, Order Modifiers, Time Fences
• Lead Time: Processing, Variable, Fixed
• Work in Process: Build in WIP, Supply Type, Over Completion Tolerance
• Order Management:Customer Ordered, Customer Orders Enabled, Shippable, ATP rule,
Returnable
• Invoicing: Invoiceable Item, Invoice Enabled, Sales Account, Tax Code, Accounting
Rule
• Service: Support service, Serviceable Product
• Web Option: Orderable on the Web, Publishing Status
Item attributes are a very important decision in implementing Oracle. Companies need to think
carefully about how their items are used and how they want to use them in Oracle before they
start the implementation. This will be discussed in more detail in a later section of this module.
Note: Some attributes rely on settings of other attributes. For example to be Customer Orders
Enabled, Customer Orderable must also be selected. In some cases, the dependent attributes
may reside on separate tabs. When a conflict occurs, Oracle will notify the individual setting
the attributes with a pop-up window that not all of the required attributes have been selected.
Enter Items
Chapter 9 - Page 10
Item Statuses Representing the Life Cycle
Item Statuses Representing the Life Cycle
• Engineering
• Purchased only
• Inactive
• Prototype
• Purchased
• Built in WIP • Active • Phase Out
• Stockable • Orderable
• Orderable • Invoicable
• Invoicable • Transactable
Items Statuses Representing the Life Cycle

All items within Oracle have statuses. The statuses represent the life cycle of the item. By
using a item status, you can control key functionality of an item.
• Status attributes enable and disable the functionality of an item over time.
• Each status attribute allows you to enable the item for particular use. For example, if you
set the status attribute Purchasing to yes then you can place the item on a purchase order.
• Changing the status of an item can be done via concurrent request or manually. This is a
customer decision as to how they want to handle. The only requirement is that the
customer use the status Active.
The Item Status attribute has a user defined set of yes/no values for the status attributes. The
values are applied to the status attributes when you choose an item status code when defining
an item. For example, in the beginning of a product development cycle you can set the Item
Status attribute to Prototype with all of the status attributes defaulted to yes except for
Customer Orders Enabled. When the item is ready you can change the Item Status attribute to
Active to allow all functions for the item.
When defining an item you must give the item status by using the Item Status attribute.
Enter Items
Chapter 9 - Page 11
The Status Attributes are related to the defining Item Attributes. You cannot enable a Status
Attribute if you do not set the corresponding item attribute to yes.
The item defining attributes are as follows:
• Inventory Item
• Purchased item
• Internal Ordered Item
• MRP/MPS Planning Method
• Service Item
• Costing Enabled
• Engineering Item
• Customer Ordered Item
If any of the above item defining attributes is set to yes, then the item is automatically assigned
to the default category set for the item.
Enter Items
Chapter 9 - Page 12
Item Attributes Used in Item Status
Item Attributes Used in Item Status

Yes Stockable No
Yes Transactable No
Yes Build in WIP No
Yes Purchasable No
Yes Customer Orders Enabled No
Yes Internal Orders Enabled No
Yes BOM Allowed No
Yes Invoicable No
Active Inactive
Item Attributes Used in Item Statuses

(N) Items > Setup > Items > Item Codes
The item attributes above should be used together to represent the part as it travels through its
lifecycle. The two item statuses that come seeded with Oracle are Active and Inactive. The
attribute settings for each of the status attributes with the two seeded statuses is given above.
There is no requirement to add additional statuses.
Examples of additional statuses are:
• Prototype
• Phase out
Prototype:
A prototype item may not be ready to ship to a customer. The company needs to be able to
build it in WIP or purchase it, and either create a BOM for the item or put the item on a BOM
but not sell the item at this point in time. Therefore the Customer Orders Enabled and Invoice
Enabled attributes should be set to No. When the customer is ready to sell and ship the item,
she will change the status of the item to Active, which will update the two attributes to Yes.
Enter Items
Chapter 9 - Page 13
Phase Out:
The company wants to get rid of existing stock of an item. Therefore the attributes
Purchasable and Build in WIP should be set to no, so that existing stock is depleted.
Status Attribute Definitions:
Users may define as many statuses as necessary to represent their business. The attributes and
what they mean are given below so that the company implementing the E-Business Suite can
decide how they want to use this functionality. The definitions of the attributes used in status
control are given below.
• Stockable: Allows you to store the item in an asset sub-inventory.
• Transactable: Allows you to transact the item Inventory, Order Management, Purchasing
and WIP.
• Build in WIP: Allows you to build the item on a discrete job and/or a repetitive schedule
• Purchasable: Allows you to place the item on a purchase order
• Customer Orders Enabled: Allows you to place the item on a sales order.
• Internal Orders Enabled: Allows you to create an internal sales order for the item.
• BOM Allowed: Allows you to create a bill of material for the item.
• Invoice Enabled: Allows you to create an invoice for the item.
Enter Items
Chapter 9 - Page 14
Guided Demonstration - Create an Item Status
This demonstration shows how to define Status Codes within Inventory.

(USA)
(N) Inventory > Setup > Items > Status Codes
1. If you are prompted for an organization, choose V1-Vision Operations
Enter the following values to create a new Item Status Code:

− Status: DEM_Status
− Description: Demo Status
− Enable (check) the following:
− BOM Allowed
− Build in WIP
− Internal Orders Enable
− Transactable
− Purchasable
− Stockable
Note: The Usage column should say: Default Control for all attributes.
(I) Save.
Enter Items
Chapter 9 - Page 15
Item Master Organization and Child Organizations
Item Master Organization and Child

Organizations
Parts Listing – no
Item Transactions
Master
Inventory Inventory
Transactions
Organization 1 Organization 2
Items are created in the

Master Org and assigned
to the Child Orgs
All of the above are

Inventory
Organizations
Item Master Organization and Child Inventory Organizations

Item Master Organization
The first Inventory organization that is defined. Its single purpose is for entering items. It has
no sub-inventories and is not used for inventory transactions. The item master can be thought
of as a parts list. Oracle suggests that implementers create at least two Inventory Organizations,
an item master and an inventory organization. If you only create one organization and ever
decide to expand to more than one organization, the initial decisions made at implementation
may restrict what you can do. For example, during implementation one will decide where to
control item attributes. Are they controlled at the item master or at the individual organization
level? A company with only one organization is not impacted by this but if you ever add an
additional organization later, the attribute controls will be harder to change. It is not a
requirement to have more than one organization but is suggested.
Child Organization
An inventory organization with at least one sub-inventory that is set up for processing
inventory transactions. It is not used to enter items. Items are created in the item master and
assigned to the child organization(s). One can have as many inventory organizations as needed
to meet business requirements.
Enter Items
Chapter 9 - Page 16
Note: One item master is recommended and can cover multiple sets of books. It is much
easier to add an inventory organization and assign items to the new organization than it is to
copy from one item master to another once the data has been entered. Carefully consider the
business reasons why you need two item masters.
Enter Items
Chapter 9 - Page 17
Agenda
Agenda

Enter Items
Chapter 9 - Page 18
Creating an Item
Creating an Item
Create a new item:

• Enter Item Name
• Apply template or copy from an existing item
• Modify attributes if necessary
• Assign to Inventory Organization
• Save to the database
V1
M1 M3
Creating an Item
(N) Items > Master Items
An item is created by either importing the item through an open interface or manually using the
master item windows.
Enter Items
Chapter 9 - Page 19
Implementation Considerations
Choose Item Attribute Control Levels
Define Define Define Create Define

UOMs Status Categories Templates Catalogs
Control
Define
Levels
Category
Define Sets
Statuses Define
Default
Category
Sets
A number of elements must be considered when implementing items within the E-Business
Suite.
• Determine what the item attribute controls will be. Are you going to control each attribute
at the master level or the organization level? Are you going to have centralized control
(master) or decentralized control (organization)? This is determined by attribute.
• What Units of Measure will you need to transact items in? Units of Measure need to be
defined for both transaction use and for use as the Primary Unit of Measure for an item.
The primary unit of measure is the smallest unit of measure for that item and is considered
to be the base for all transactions of that item.
• Will you need Item Statuses beyond the seeded values? If so, they need to be defined.
• Create at least one category and category set as all items are put into a category set and
category when they are defined. Define as many categories as necessary to meet your
needs.
• Review the seeded templates and determine whether to create the item templates or use the
seeded templates.
• Define catalogs to group your items.
Enter Items
Chapter 9 - Page 20
Describing Item Attributes – Order Management
Describing Item Attributes – Order

Management
Customer Orders Enabled OE Transactable
Shippable Returnable
Describing Item Attributes – Order Management

Below are the attributes within the Order Management tab of the Item Definition window. Some
the attributes on this tab are affect by attributes located on other tabs within the window. As
with other settings within Oracle, many of these attributes allow implementers to set specific
values to override ones previously defined in default hierarchies. As the item is considered to be
the most specific level, these values will take precedence over inventory organization settings.
Customer Orders:
Indicate whether to allow an item to be ordered by external customers. You can add any
customer orderable items to price lists in Order Management. This attribute must be turned off
if the BOM Item Type attribute is set to Planning.
If you turn this attribute on, you can temporarily exclude an item from being ordered by
turning Customer Orders Enabled off.
This is an item defining attribute. If you turn this attribute on, the item is automatically
assigned to the default category set for the Order Management functional area.
Customer Orders Enabled:
Indicate whether an item is currently customer orderable. If you turn this attribute on you can
specify the item in the Enter Orders window in Order Management.
Enter Items
Chapter 9 - Page 21
You can initially define an item with Customer Ordered Item turned on and Customer Orders
Enabled turned off. This means prices can be defined for the item, but no orders can be placed
for it.
This attribute is optionally set by the Item Status code.
Shippable:
Indicate whether to ship an item to a customer. Shippable items are released by Order
Management's Pick Release program, creating confirmable shipping lines, and are printed on
the pick slip. A warning is issued if you change the value of this attribute when open sales
order lines exist.
For an item to be shippable, it must also be an Inventory Item and Stockable. Both of these
attributes are listed on the Inventory Tab. This Shippable attribute must be turned off if the
BOM Item Type attribute is set to Planning.
Internal Ordered:
Indicate whether to allow an item to be ordered on an internal requisition in Purchasing. These
items then are transferred onto an Internal Sales Order in Order Management. If you turn this
attribute on, you can temporarily exclude an item from being ordered on an internal requisition
by turning Internal Orders Enabled off.
This is an item defining attribute. If you turn this attribute on, the item is automatically
assigned to the default category set for the Oracle Purchasing functional area.
Internal Orders Enabled:
Indicate whether you can currently order an item internally. If you turn Internal Ordered Item
on, you can temporarily exclude an item from being ordered on an internal requisition by
turning this attribute off.
OE Transactable:
Indicate whether demand can be placed for an item by Order Management (OM), and whether
shipment transactions are interfaced to Inventory. Most items with Shippable turned on also
have OM Transactable turned on. For items you do not ship, you may still want OM
Transactable turned on if you use the items in forecasting or planning. If you also want to
reserve the item, turn Reservable on. A warning is issued if you change the value of this
attribute when open sales order lines exist. You cannot turn this attribute off if demand exits.
Default Shipping Organization:
Enter the warehouse from which you typically ship this product. This organization can default
to the Enter Orders window if Item is the source attribute of the Warehouse object in the
standard value rule set for the order. This organization defaults to the Enter Returns window if
a receiving warehouse is not defined on the customer or order type.
Picking Rule
Enter the picking rule that defines the order in which subinventories, locators, lots, and
revisions are picked.
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.
Enter Items
Chapter 9 - Page 22
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.
An item cannot have Pick Components turned on and this attribute turned on at the same time.
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.
This attribute also determines whether you can view component ATP information for material
requirements in Work in Process.
ATP Components
Indicate whether to include, in available to promise checking, additional components in the bill
of material for ATO and PTO items. These components are included in ATP checking if Check
ATP for the component is turned on.
ATP Rule
Enter a user-defined available to promise rule. ATP rules define supply and demand sources,
time-fence parameters, and available-to-promise calculation methods. You can give ATP rules
meaningful names, such as ATO ATP Rule.
If there is no ATP rule for the item, the organization's default ATP rule is used.
Ship Model Complete:
Indicate whether any configuration derived from this model can ship only when all required
quantities of all configuration components (options or included items) are available.
If you turn this attribute on, the Pick Components attribute and the profile option OE:
Reservations must be Yes; the BOM Item Type attribute can be Model or Standard.
Returnable:
Indicate whether to allow customers to return an item. If an item is returnable, you can enter it
on the Returns window in Order Management. Order Management uses this attribute along
with Stockable and Transactable to determine which authorized returned items you can
physically receive into inventory.
RMA Inspection Required
Indicate whether inspection is required for items returned by the customer. The item then must
be separately transferred to inventory. Credits are never automatically generated by Order
Management for customer return items awaiting inspection.
OverShipment Tolerance
The amount by which you want to allow shipments over the sales order quantity. This is
expressed in terms of a percentage.
UnderShipment Tolerance
The amount by which you want to allow shipments under the sales order quantity. This is
OverReturn Tolerance
Enter Items
Chapter 9 - Page 23
The amount by which you want to allow returns over the sales order quantity. This is
UnderReturn Tolerance
The amount by which you want to allow returns under the sales order quantity. This is
Financing Allowed
Indicate whether a customer can finance this item.
Enter Items
Chapter 9 - Page 24
Describing Item Attributes - Invoicing
Describing Item Attributes - Invoicing
Invoicing Enabled Sales Account Number
01-520-4510-0000-000
Describing Item Attributes – Invoicing

Below are the attributes within the Invoicing tab of the Item Definition window. As with other
settings within Oracle, many of these attributes allow implementers to set specific values to
override ones previously defined in default hierarchies. As the item is considered to be the most
specific level, these values will take precedence over inventory organization settings. Several of
these values are able to default into the Sales Order and Return transactions in Order
Management via the Defaulting Rules implemented by the customer.
Invoiceable Item:
Indicate whether to include an item on an Receivables invoice. If you turn this option on, you
can temporarily exclude from invoicing when Invoice Enabled is turned off.
Invoice Enabled:
Indicate whether to activate an item for invoicing in Receivables. If Invoiceable Item is turned
on, you can temporarily exclude from invoicing by leaving Invoice Enabled turned off.
If you turn this option on, the item appears in the Invoice Entry item list of values in
Receivables. If you turn this feature off, the item does not appear in the list of values and
AutoInvoice rejects the item.
Enter Items
Chapter 9 - Page 25
Accounting Rule:
Enter an accounting rule to identify special revenue recognition rules for an item, such as
recognizing revenue over time.
Invoicing Rule:
Enter an invoicing rule to determine the period in which you send an invoice when you
recognize revenue over time (using accounting rules).
Tax Code:
Enter a tax code to use when calculating tax based on location and tax codes. You assign
specific rates to a Tax Code in the Other Tax Rates window. Sales Account
This attribute is controlled at the Organization level only.
Sales Account
Enter the general ledger account Receivables can use to record revenue when you bill the
customer. If AutoAccounting references standard line, this accounting combination can be used
either whole or in part to create the invoice account combinations required.
Payment Terms
Enter a valid payment terms code.
Enter Items
Chapter 9 - Page 26
Guided Demonstration - View Item Attributes
This demonstration shows the main tabs within the Item Definition window that relate to the
Order to Cash Process.

(USA)
(N) Inventory > Items > Master Items
1. If prompted, select the V1-Vision Operations inventory organization.
2. Find or Query the item CM13139

− The attributes tell us that the intent of this item was to be a purchased item.
3. (T) Main
− Note the primary unit of measure – smallest unit we will transact the item in. Also
will be the default unit of measure on Order Management documents.
− Note the Item Status. (Active).
4. (T) Inventory
− These attributes control whether the item is an Inventory Item and Stockable. You
will also see that there are no inventory controls on this item. These affect the order
to cash process in that we wish to ship this item, but are not concerned about it’s
serial number.
5. (T) Costing
− The Cost of Goods Sold Account can be used by Account Generator during the
shipping process.
6. (T) Physical Attributes

− These attributes are used during the shipping section of the order to cash process.
Oracle is able to calculate shipping volumes based upon information entered in this
tab.
− Also note the designation of container. For companies that require container and
vehicle definition, the item master contains this data along with the parts that are
shipped within the containers and vehicles.

− These attributes as discussed in the text control how this item behaves within the
ordering process. CM13139 does not have any specific settings for ATP Rule or
Default Shipping Organization, but if it did, they would take precedence over the
values set for the inventory organization.
8. (T) Invoicing
Enter Items
Chapter 9 - Page 27
− These attributes as discussed in the text control how this item behaves within the
invoicing process.
− Note the general ledger account associated with the Sales Account field. This is the
value that will be optionally used by AutoAccounting. It must be set for each
organization, however the value in this field will default from the inventory
organization definition. This is a place to override that value.
Enter Items
Chapter 9 - Page 28
Describing Attributes Controls at Master Level
Describing Attributes Controls at Master

Level
Inventory Item - Yes
Item
Master
Inventory Inventory
Inventory Item - Yes Inventory Item - Yes
Describing Attribute Controls at Master Level

Item attributes
Specific characteristics of an item, such as order cost, item status, revision control, COGS
account, etc. Each item attribute is controlled at the master level organization or the child
organization.
Item attribute control level
The level at which you wish to control various item attributes in accordance with company
policy. You may choose either the master or child (organization) level for control. For
example, if your company determines serial number control at headquarters regardless of
where items are used, you define and maintain serial number attribute control at the item
master level. If each organization maintains serial number control locally, they maintain those
attributes at the organization specific level.
Attributes Controlled at the Master Level
An item has the same value for such attributes in all organizations in which it is defined. You
can enter and update the values of Master-level attributes only by using the Master Item
window. Inventory reflects your changes in all organizations that carry the item.
Enter Items
Chapter 9 - Page 29
Describing Attributes Controls at Child Level
Describing Attributes Controls at Child

Level
Make / Buy = Make

Item
Master
Inventory Inventory
Make / Buy = Buy Make / Buy = Make
Describing Attribute Controls at Child Level

An item may have different values for such attributes in each organization in which it is
defined. When you define your items in the item master, you can specify defaults for
organization-level attributes. You can update the values of organization-level attributes only by
using the Organization Item window in each organization that carries the item.
Changes to attributes:
• If the attribute is controlled at the master level, then any change to the attribute at the
master will be populated to the children organizations.
• Children organizations will not be able to change attributes that are controlled at the
master level.
• If the attribute is controlled at the child level, then any change the attribute at the master
will not be populated to the child organizations. If one or more children organizations
impacted, each one will have to be changed separately.
• In the example above, if I change the make/buy flag to make in Organization #1, this will
not change the attribute at the master level or in any other organization. If the attribute
control were at the master level, then changing the make/buy flag to buy at the master
level would change each child organization.
Enter Items
Chapter 9 - Page 30
If you have BOM installed, then the following attributes will need to set at the child level.
This is because Oracle does not share resources across organizations.
• Costing enabled
• Inventory Asset Value
Enter Items
Chapter 9 - Page 31
Describing Item Status Attribute Controls
Attribute Attribute Value Status Setting Can I change?
Stockable Yes Sets Value No

Transactable Yes Sets Value No
BOM Allowed No Sets Value No
Purchasable Yes Not Used Yes
Build in WIP Yes Defaults Value Yes
Customer Orders No Sets Value No

Enabled
Internal Orders Yes Defaults Value Yes
Enabled
Invoice Enabled No Not Used Yes

In addition to deciding whether the item attribute will be controlled at the master or the child
level, each of the status attributes also has a status attribute control. The status setting level
determines whether you can update the value of each status attribute within an item status.
There are three status attribute controls and they are as follows:
• Sets Value: The status that you assign to the item loads an non-updateable value into the
status attribute. You can update the status attribute by change the status that you assigned
to your item.
• Defaults value: The status that you assign to the item loads a default value into the status
attribute. You can update the status attribute as you define your item.
• Not Used: The status that you assign to the item does not determine the value of the
status attribute. You can enable or disable the status attribute as you define your item.
Enter Items
Chapter 9 - Page 32
Describing Item Templates
Use a template to The result:

What attributes are
enable those Attributes in
being enabled
attributes with one template are
each time an item
keystroke as applied to
is created?
opposed to many. new item.

Item templates are used to make defining items easier. There are over 190 attributes. It can take
time to go through >190 attributes and determine which ones should be enabled especially if
the same type of item is entered repetitively. Item Templates are designed to meet that need.
An item template contains values for any number of item attributes. When an item is created
and a template applied, the values on the template are copied to the item so each attribute does
not have be addressed individually.
Note: The item status and primary unit of measure are item attributes and are on the templates.
If you want to use the life cycle approach to parts, you might want to consider leaving these
fields blank and forcing the user to enter the value when the item is created. Additionally, the
item status and primary unit of measure can also be defaulted via profile option. You might
want to consider leaving this null as well.
Enter Items
Chapter 9 - Page 33
Creating Item Templates
Copy from an existing or

predefined template; make
changes as necessary to
meet your business needs.
Start from Scratch and

create a template that is
meaningful to you.

(N) Setup > Items > Templates
There are several options with respect to creating item templates:
• Use Predefined Templates – there are templates that come pre-defined with Oracle.
Examples include Finished Good, Planning Item, Purchased Item and Kit.
• Create your own template. This can be done in one of several ways.
- Use an existing template and copy to a new template. Give the template a new
name.
- Create a template from scratch
No matter which option you choose in defining templates, Oracle Inventory will apply only
those attributes to an item which are enabled. If the attribute is not enabled, then the attribute
will not be applied to the item.
Note: It is advisable to keep the pre-defined templates intact and not make changes to what
comes with Oracle. It is better to create your own template by copying a pre-defined template
and giving a name that is meaningful to your organization. This is because if you ever need
Enter Items
Chapter 9 - Page 34
that original template for reference you will have it. If you make changes to a template, the
changes will be effective with the next time you use the template. Changes are not applied
retroactively.
Implementation considerations:
• Are you going to use the existing templates?
• Review the existing templates and see if they either can be used or used to copy to a new
template.
• Put a process in place for defining items such that templates are not applied on top of
templates. The last template is the one that wins. The order in which templates are
applied is extremely important
• What attributes reflect what is going on in your business?
• What is meaningful to you in terms of what a finished good or purchased part is?
Enter Items
Chapter 9 - Page 35
Using Item Templates
Apply the Make changes Verify you have

template to a and deletions the attributes
new item being as necessary. you want on
created. the item.

Use Item templates to quickly apply attributes to an item. Templates can hold a complete set of
attributes or a partial set. If a partial set, then only values stored in the template overwrite
those on the item. More than one template can be applied, however, if more than template is
applied, the last template applied is the one whose attributes will be enabled for that item.
After the template(s) is used, make changes as necessary to a particular item. An item template
can be changed, however, the changes do not affect any items already created using that
template.
If you are changing an attribute more than 50% when using the same template, it might be
better to change the attribute on the template.
Enter Items
Chapter 9 - Page 36
Guided Demonstration - Create an Item
In this demonstration you will see how to create three items. The first will not use a template,
the second will and the third will have the attributes copied from an existing item.
You will also enable these items for use in three warehouses within the Vision system.

(USA)
1. If prompted, select V1-Vision Operations inventory organization.
Create an Item manually
2. Enter the following values to create a new item.

− Item: Demo-Monitor
− Description: Demo Monitor
3. (T) Main
− Primary Unit of Measure: Each
− Item Status: Active
4. (T) Inventory
− Inventory Item: Checked
Note: By selecting Inventory Item, we’ve defined the item to be an inventory item…an item
that will be stocked in a warehouse. The Stockable and Transactable attributes determine
what actions may be taken on the item. These attributes are automatically selected when
choosing Inventory Item.
5. (T) Purchasing
− Purchased: Checked
− Purchasable: Checked
− List Price: 250

− Customer Ordered: Checked
− Shippable: Checked
− OE Transactable: Checked
Note: By default RMA Returnable is checked. Also by selecting Customer Ordered,

Customer Orders Enabled is checked.
7. (T) Invoicing
− Invoiceable Item: Checked
Enter Items
Chapter 9 - Page 37
Note: Selecting Invoiceable Item causes the Invoice Enabled attribute to be checked
automatically.
8. (I) Save
Enable the Item in an Inventory Organization
9. (M) Tools > Organization Assignment
10. Assign the item to the following inventory organizations:

Org Name Assigned
M1 Seattle Manufacturing Checked
M2 Boston Manufacturing Checked
M3 Dallas Manufacturing Checked
11. (I) Save
12. Close the Organization window.
Create an Item using a Template
13. (I) New Record

− Item: Demo-Mouse
− Description: Demo Mouse
15. (M) Tools > Copy From…
16. Copy the attributes from a template to create your item:

− Template: Finished Good
17. (B) Apply
Note: the message line indicates that the template was applied.(Template implemented)
18. Close copy window using (B) Done
19. Select the following tabs noting the values that were selected using the template:
− Main
− Inventory
− Purchasing
− Order Management
Enter Items
Chapter 9 - Page 38
− Invoicing
20. (I) Save

Org Name Assigned
23. (I) Save
24. Close the Organization window.
Create an Item by Copying an Existing Item
25. (I) New Record

− Item: Demo-Keyboard
− Description: Demo Keyboard
28. Copy the attributes from an to apply to your item:

− Item: CM18759
Note: You may need to use the (B) Clear to clear the template information used earlier in
this demonstration.
29. (B) Apply
Note: the message line indicates that the item information was applied. (Item Copied)
30. Close copy window using (B) Done
31. Select the following tabs noting the values that were selected using the template:
− Main
− Inventory
− MPS/MRP Planning
− Purchasing
Enter Items
Chapter 9 - Page 39
− Order Management
− Invoicing
32. (I) Save

Org Name Assigned
35. (I) Save
Enter Items
Chapter 9 - Page 40
Practice - Create an Item
Overview
In this practice you will learn to create an item using a template.
• Create an inventory item.
• Enable the item in an Inventory Organization.
Assumptions
Tasks
Create an inventory item
1. Create an inventory item called XX-Mousepad. The engineering team has determined that
the Finished Good template contains all of the necessary item attribute settings, except the
list price of the item, which should be set to 2.00.
Enable the item in an Inventory Organization.
2. Enable your item in three inventory organizations: M1, M2, and M3.
Enter Items
Chapter 9 - Page 41
Solution – Create an Item
Create an inventory item
1. Navigate to the Master item window.
• (N) Inventory > Items > Master Items

− Item: XX-Mousepad
− Description: XX Mousepad
2. Copy the attributes from the Finished Good template:
• (M) Tools > Copy From…

• (B) Apply
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Chapter 9 - Page 42
3. Close Copy window
• (B) Done
4. (T) Inventory. Verify the following settings:

− Inventory Item: Checked
− Stockable: Checked
− Transactable: Checked
− Reservable: Checked
5. (T) Purchasing.
6. Verify the following settings:
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Chapter 9 - Page 43
− Purchased: Checked
− Purchasable: Checked
7. Enter the List Price: 2.00
8. (T) Order Management. Verify the following settings:

− Customer Ordered: Checked
− Customer Orderable: Checked
− Shippable: Checked
− OE Transactable: Checked
Enter Items
Chapter 9 - Page 44
9. (T) Invoicing. Verify the following settings:
− Invoiceable Item: Checked
− Invoice Enabled: Checked
Enter Items
Chapter 9 - Page 45
10. (I) Save
11. Navigate to the Organization Assignment window.
• (M) Tools > Organization Assignment

Org Name Assigned
13. (I) Save.
Enter Items
Chapter 9 - Page 46
Agenda
Agenda

Enter Items
Chapter 9 - Page 47
Describing Item Categories
Desktop Laptop

Use item categories to group items that have similar characteristics. For example, desktop
computers may be one category and laptop computers may be another category. Many of the
reports in Oracle use categories as a way to report on information. You could use categories to
analyze the categories that had the highest volume or value of transactions or use them as a
way to do product line reporting and see what product lines are the most profitable. The margin
analysis report allows one to run the report by category.
Enter Items
Chapter 9 - Page 48
Create Item Categories
Item Flexfield
Structure Name Category Name Item Name
Product Family Computers Desktop 1

Product Class Desktops Desktop 2
Product Family Computers Laptop 1

Product Class Laptop Laptop 2
Product Family Computers Video card

Product Class Accessories Modem

(N) Setup > Items > Categories > Category Codes
Structure the Category key flexfield to meet business needs. An example would be to have two
segments in the flexfield. One segment might be the product line and the second segment
might be product class. In the example above, product line would be computers and product
class would be desktop and laptop. This can be structured to be as meaningful to the customer
as needed. The structure of this flexfield needs to be considered before the implementation
starts and for each structure defined, should not be changed after implementation.
Each item is assigned to a default category and category set when defined. There are many
possible default category sets an item may be included in: Inventory, Purchasing, and Order
Management are examples. Each of these will have a default category for the initial
assignment of the item. This default assignment can be changed based upon business needs.
Item Category Key Points:
• Determine how you want the structure to look and define the item flexfield.
• You can define as many structures as you need for your business. You are not limited to
one.
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Chapter 9 - Page 49
• Create category names based on this structure
Note: By default when you create an item, if it is enabled with the attribute Inventory Item, it
will be assigned to the default category for the Inventory category set. You can change this as
you define the item or at a later time.
Enter Items
Chapter 9 - Page 50
Establish the Relationship Between the Category, Category Set
and Item
Establish the Relationship Between the

Category, Category Set and Item
Category Set Category Items
Cost
Laptop 1
Computers.Laptop
Laptop 2
Inventory
Establishing the Relationship Between the Category, Category Set and Item
Items can be in multiple categories, however, they can only be in one category in a category
set. When one is deciding how to classify the data, a decision will need to be made as to what
items are in what categories within a category set. An item may be in one category for
Inventory but in another for the cost accountant who has his own category set for cost. This
gives a increased amount of flexibility.
The process is as follows:
• Define the Item Category flexfield
• Create a category set and assign the category or categories to the category set.
• Once items have been created, assign them to categories and category sets as necessary
for your business.
Enter Items
Chapter 9 - Page 51
Guided Demonstration - Create a Category
This demonstration shows you how to create a new category code and then associate that code
with a category set.

(USA)
Define the new category code
(N) Inventory > Setup > Items > Categories > Category Codes (B) New
1. Enter the following values to create a new category code:

− Structure Name: Inventory Class (from list of values)
− Category: Demo INV
− Description: Computer inventory
2. Tab to the descriptive flexfield.

− Include in Web Requisition = Y
− (B) OK
Note: This descriptive flexfield information is for iProcurement.
3. (I) Save
Add category code to a category set
(N) Setup > Items > Categories > Category Sets > (B) Find
4. If prompted, select V1-Vision Operations
5. Query the Inventory Class category set.
6. Add your category to the Categories region

− Category: Demo INV
7. (I) Save
Enter Items
Chapter 9 - Page 52
Practice - Create a Material Transaction
Overview
In this practice you will create a material transaction.
Assumptions
Practice.
Tasks
Enter quantities for M1-Seattle Manufacturing
1. Navigate to the Organizations window

− Select M1: Seattle Manufacturing
2. Enter a miscellaneous transaction using the following information:

− Date: Leave as default
− Type: Miscellaneous Receipt
− Account: 01-580-7740-0000-000 (or use Miscellaneous Account Alias)
3. The miscellaneous transaction should accomplish the following for your XX-Mousepad
item:
− The Stores subinventory quantity should be incremented 10000
Open current period for your inventory organization
4. Use the Change Organization window to make your inventory organization the current
inventory organization
5. (N) Accounting Close Cycle > Inventory Accounting Periods

− Select Line with current period displayed
6. Change the status to open the period
Enter Items
Chapter 9 - Page 53
Enter quantities for your XX-IO inventory organization
7. (N) Transactions > Miscellaneous Transactions

item:
9. (I) Save
Enter Items
Chapter 9 - Page 54
Solution - Create a Material Transaction


3. (B) Transaction Lines

− Subinventory: Stores
− UOM: leave default
− Quantity: 10000
4. (I) Save, return to Navigator
5. (N) Change Organization
6. Select XX1 (your inventory organization)

8. (B) Change Status
9. (B) OK
10. Return to Navigator
Enter quantities for your XX-IO

Enter Items
Chapter 9 - Page 55
− Subinventory: XX-Stores
− Quantity: 10000
13. (I) Save
Enter Items
Chapter 9 - Page 56
Enter Items
Chapter 9 - Page 57
Describing and Using Item Catalogs
Descriptive Element Catalog Group - Computers
Processor Speed
Hard drive
Memory

(N) Setup > Items > Catalog Groups
The use of catalog groups provides a standard language for referring to items. Companies in
the same industry can communicate effectively without being forced to name their items
identically.
You can update a detailed description of what an item is without having to embed that meaning
into the item number. You can update the item description with a concatenated value of the
item catalog group and descriptive element values. You can use descriptive elements as search
criteria for items. Item catalogs can also be used to group items. This is helpful to an engineer
who is looking for items that already exist and may be similar in some regards to what is being
designed. By using catalogs, the engineer can search on a descriptive element that is important
to the new design and see what has already been developed and perhaps leverage another’s
work.
Enter Items
Chapter 9 - Page 58
A descriptive element describes a classification within a catalog so that information can be
sorted and retrieved in different ways. For example, a mail order catalog for clothing could
have different descriptive elements such as type of clothing, color and size.
Additionally, consider a catalog sales person. A customer calls in and wants to place an order
for a pair of shoes. If the descriptive elements were created to reflect types of shoes, color,
sizes and style, the catalog sales person could use catalogs to search for that item based on one
or more descriptive elements and see if any were in stock. A buyer could also use this
functionality to search on descriptive elements and see what is in stock that could be
substituted if a there were a shortage of a particular component.
Enter Items
Chapter 9 - Page 59
Define Item Relationships – Order Management
Define Item Relationships – Order

Management
Business World
Customer Item Number Seller Item Number

Keyboard 12322 XYZAAA
Define Item Relationship – Order Management

(N) Setup > Items > Categories > Category Codes
The customer item number and the seller item number will probably be different. Defining an
item relationship with Customer item numbers allows the seller to be able to cross reference
the customer item number with the in house item number. If the customer calls and would like
to place an order using their part number, the person taking the call will be able to use that
customer number to place the order. The mapping between internal part number and customer
part number is customer specific.
Enter Items
Chapter 9 - Page 60
Guided Demonstration - Define Item Relationships
In this demonstration you will see how to create a relationship between a customer item and your
internal item.

(USA)
N > Inventory > Items > Customer Items > Customer Items
1. If prompted, select V1-Vision Operations
2. (B) New
3. Enter the following values to create a new customer item

− Customer Name: Business World (#1608)
− Customer Item: MNT100
− Commodity Code: Finished Good
4. (B) Cross Reference
5. Create the cross reference between the customer item and your internal item
− Customer Item: MNT100 (defaults and is not updateable)
− Item: Demo-Monitor (from list of values)
− Rank: 1
Note: Enter the Rank as a positive number. This allows you to define more than one
customer cross reference association. In these cases, you must specify the Rank of the cross
reference. The highest rank is 1.
6. (I) Save
Enter Items
Chapter 9 - Page 61
Practice - Add an Item to a Price List
Overview
In this practice you will create a price list.
Assumptions
Practice.
Tasks
Add item to Corporate price list
1. Navigate to the Price Lists window
• (N) Pricing > Price Lists > Price List Setup
2. Add your item to the Corporate price list using the following information:
− Product Context: Item
− Product Attribute: Item Number
− Product Value: XX-Mousepad
− Value: 7.50
Enter Items
Chapter 9 - Page 62
Solution - Add an Item to a Price List
2. Query Corporate Price List
3. (T) List Lines
4. (I) New Record

− Value: 7.50
5. (I) Save
Enter Items
Chapter 9 - Page 63
Enter Items
Chapter 9 - Page 64
Additional Setup Considerations
Description Comments
Units of Measure Determine by item before you

create; lowest unit you stock,
plan and cost
Item Flexfield How many segments?
Build intelligence?
Numbering / Naming Create name or system
Conventions generated or both?
Conversion of item/item import How are you going to load items
into database
Which items will be converted? Is there going to be an analysis
of what is not needed?
Ongoing Item addition and What role will do this? Who will
Maintenance have access?

Units of Measure are a pre-requisite step for defining items. UOM is also an item attribute and
is the only one that can not be changed once the item has been saved to the database. If an
incorrect primary unit of measure is selected and saved, the only option is to delete the item
and start again. This value can be defaulted from a profile option but if your organization does
not use the same primary unit of measure (pUOM) for every item, then a decision will need to
be made as to whether to create multiple templates for parts using different pUOMs. If the
pUOM is allowed to default from a profile option and multiple primary units of measure are
used, there is a risk that the wrong one would be applied to the item if there was not a process
in place to review the UOM before saving the item to the database.
Additional Key Flexfields in Item Definition
Item flexfield
Key flexfield that give the shape of part number is the System Items flexfield. During
implementation, you must decide how many segments should be in your part structure.
Additional considerations include: use of intelligence in the part number, validation of the
values within the structure and whether the system will generate the part numbers.
Sales Order Flexfield
Enter Items
Chapter 9 - Page 65
This is another key flexfield in the Inventory application. It is used to capture information
from Order Management when the Inventory interface is run. Examples of the type of
information that may be collected from Order Management are the sales order number, order
source and order type. The information in this flexfield is populated in the transaction record.
Numbering/ Naming Conventions
Are you going to let the system generate the item numbers or are you going to define them
yourself? If you are going to define them yourself are you going to have some type of naming
convention so that the item number has meaning. Are you going to use capitals, lower case
letters or both? The query capability in the item form is case sensitive so this is something to
consider.
Conversion of Item/Item Import
How are you going to get your existing items into Oracle? Are you going to enter each item
manually? Are you going to import the items through the open interface? Who will verify that
the item attributes are correct upon import? Will a reconciliation be done between what was in
the legacy system vs. What has been brought into Oracle?
Which items will be converted? Does every item need to be brought into Oracle? This is a
good opportunity to do clean up work. Run reports in the legacy system and see which items
are obsolete and not needed any longer. Those don’t need to be brought into Oracle if a
backup of the old system is available. Why bring something to Oracle that you don’t need.
What is the process for entering new items and doing maintenance such as changing item
attributes on existing items? Who will have this responsibility and how many people will have
access to this screen? Will there be an approval process for changes to item attributes and item
additions?
Enter Items
Chapter 9 - Page 66
Summary
Summary

• Describe how items integrate in the Order to Cash
Life Cycle
• Define items and item attributes
• Explain item implementation considerations
Enter Items
Chapter 9 - Page 67
Enter Items
Chapter 9 - Page 68
Enter Orders
Chapter 10
Enter Orders
Chapter 10 - Page 1
Enter Orders
Enter Orders
Enter Orders
Chapter 10 - Page 2
Objectives
Objectives
After this module, you should be able to do the

following:
• Enter Sales Order Header information
• Enter Sales Order Line information
• Discuss Scheduling orders
• Book orders
• Copy an order
• Discuss Drop Shipments and Internal Orders
• Run Order Import
• Identify Key Set Up Elements
Enter Orders
Chapter 10 - Page 3
Agenda
Agenda
• Overview
• Entering Orders: Header information
• Entering Orders: Line information
• Scheduling Orders
• Booking Orders
• Copying Orders
• Understanding Drop Shipments and Internal
Orders
• Importing Orders
• Setting Up Sales Orders
Enter Orders
Chapter 10 - Page 4
Order Creation Methods
Enter Order Copy an EDI Import from

Online order other systems
Order
Import
Order

• Enter an order manually using the Sales Order forms.
• Create a new order by copying an open, closed or canceled order. Orders created from
the copy function can be modified as needed.
• Use Order Import to load orders that come from your EDI transactions, external systems
or other Oracle applications such as Internal orders from Purchasing or Material Charge
Lines from Service.
Enter Orders
Chapter 10 - Page 5
Order Management Workflows
• Controls Order and Line Processing
• PL/SQL based
• Notifications
• Built-in Online/Deferred modes
• Workflow Monitor
• Seeded OM Workflows

Order Headers and Order Lines have separate Workflows which process the order through it’s
life cycle. Workflow uses PL/SQL based coding to process orders. There are no limits to the
number of custom PL/SQL functions you can define to support your business processes.
Workflow Notifications indicate to a user when a manual activity, such as an approval needs to
be performed. Notifications can be received in the form of an email or a web page.
Notifications can stop the process of an Order or Order Line until the Notification has been
responded to.
Workflow has a Built-in online/deferred mode with a user-definable threshold. Activities that
use a lot of system resources can be given a higher cost threshold. High cost activities are
automatically deferred to the Workflow Background Engine. You can set up the background
engine to run a periodic intervals to process deferred activities.
Order Management makes use of the Workflow Monitor. The Monitor is a tool that allows you
to graphically monitor a flow’s progress.
Order Management has seeded order processing workflows that correspond to common
business flows at both the header and line levels.
Enter Orders
Chapter 10 - Page 6
Defaulting Rules
Defaulting Rules
• Default Customer’s preferences

• Speed Data Entry
• Reduce errors
• Identify Sources
• Specify priority
• Override Defaulted Values
Default Sources:
Customer Item Order Agreement Price
Data Data Type List Other
• PL/SQL
• Profile Options
• Constant value
Defaulting Rules
Use Defaulting Rules to populate the Sales Order with your customer’s preferences such as
freight carrier and contacts. Speed data entry by defaulting standard information such as
payment terms, price list and salesperson. This will also reduce data entry errors.
You can create a set of Defaulting Rules for each entity on the Sales Order form. Values can be
pulled from various sources such as the customer’s records, item records, and price lists or
from a Profile Option or PL/SQL code. Prioritize your Default sources by sequencing them.
The defaulting process stops as soon as a Value is found.
Values are only defaulted when a record is added. Defaulted values can be overridden if the
change does not violate your business procedures.
You can create Defaulting Condition templates which define the exception criteria to allow the
system to automatically default values from various sources under different circumstances.
Enter Orders
Chapter 10 - Page 7
Credit Checking
Credit Checking
Enter Order Book Order
Booking Shipping
Credit Check
Credit Checking
Order Management can perform Credit Checking when the Order is booked, when it is released
to shipping or both. The Order’s transaction type dictates when credit checking will occur and
what Credit Check rule will be used.
Use Profile Classes to set Credit Limits by currency and to activate/inactivate credit checking.
The Customer’s Profile classes are associated with their Bill-to addresses.
Use Payment Terms on your sales order to override credit checking. Example: Payment terms
of Cash will not perform a credit check. Orders failing credit check go on a automatic Credit
Check Hold.
Credit Check Holds can be removed manually by an authorized responsibility. Or they can be
removed automatically by the picking program, if the customer’s AR balance has been reduced
or if their credit limits have been increased. A Credit Check Hold can be automatically
released or applied from the Sales Order form if any of the following fields are undated on a
booked order; price list, order quantity, payment terms, or ship date.
Enter Orders
Chapter 10 - Page 8
Agenda
Agenda
• Overview
• Booking Orders
• Copying Orders
Orders
Enter Orders
Chapter 10 - Page 9
Order Header
Order Header
Performs Two Major Functions
• Holds the Order open until all Lines have Closed

• Acts as the Primary source for Order Line Defaulting
Order Header
Most of the Order Header attributes are available at the line level so the Header primarily
serves as a holding device to keep the Sales Order open until all the lines have been closed or
canceled. The Order Header is the primary defaulting source for new order lines.
Order Header fields can be defaulted from a variety of sources, such as the Customer records,
an agreement or a price list.
Since only a minimum of the Header information is mandatory you are able to enter and save
an order very quickly.
Enter Orders
Order Transaction Type
Controls Header Functionality

The Order Transaction Type controls which Order Level Workflow will be executed when the
Order is saved.
The Order Type Controls:
• The Order Numbering Sequence.
• When credit checking will occur and what rule will be used.
• Whether a customer purchase order number is required.
• Whether an Agreement is required.
• The level of scheduling is allowed at the header level. Example: ATP, Demand, or
Reservations.
• Whether the Order can have only outbound (Order), only inbound (Returns) or both
(Mixed).
Enter Orders
Entering Header Customer Information
Customer Name
Ship-to Address Bill-to Address

(N) Orders, Returns > Sales Orders (T) Order Information (T) Main
The Customer must already exist in the Customer Master. Only the Customer’s primary Ship-
to and Bill-to Addresses will default.
Many of the Sales Order fields can be defaulted from either the Ship-to or Bill-to records. This
enables you to be very flexible with your order requirements. Example: Order Type, Tax
code, Salesperson, Shipping Method.
Using the Tools menu, you can add new Customer information. This is controlled by the
profile option, OM: Add Customer.
Enter Orders
Entering Header Pricing Information
Price List
Currency
Salesperson

The Main tab of the Order Header contains information that groups the sales order lines
together. Specifically who has ordered the goods – the Sold To customer (identified by the
field Customer) is listed here. Also we find information related to the basics for where
products and services should be shipped, along with how we will determine pricing for the
order. Finally, how the order can be processed is identified by the Transaction, or Order Type.
Every order must have a valid Price List. All items/unit of measure combinations you wish to
order must exist either on the Price List from the Sales Order Header or one of its related price
lists. This topic is discussed in the lesson on Pricing.
You are able to enter orders in any Currency that has been defined for your Set of Books. One
restriction is the Price List currency and the Order currency must be the same. Only one
Currency is allowed per sales Order. You are able to set up credit limits by Currency for each
of your Profile Classes. The Customer’s Invoice uses the same currency as the Sales Order. If
the sales order and thus the Receivables invoice is in a currency other than the functional
Enter Orders
currency for your Set of Books, the value is converted to the functional currency when posted
to General Ledger from Receivables.
By default, the Salesperson entered on the Order Header receives 100% of the revenue
generating Sales Credits for the Order.
Enter Orders
Entering Additional Header Information

2/10 Net 30 • Payment Terms
• Warehouse
• Shipping Method
• Freight Terms
• FOB
• Shipment Priority
• Shipping Instructions
• Packing Instructions
• Payment Type Credit Card

(N) Orders, Returns > Sales Orders (T) Order Information (T) Others
The Others tab of the Order Header contains additional information regarding how the sales
order should be handled. The fields in this tab focus on our interactions with the customer
from shipping instructions to payment information.
Payment Terms, Freight Terms and Free On Board (FOB) are agreed upon by you and your
customer and should be defaulted from the customer’s records to assure customer satisfaction.
Warehouse is the Shipping Organization (where the order will be filled). The Shipping
Method is the carrier the customer prefers.
If Shipping or Packing instructions are applicable across all lines enter then at the Header level.
Like other information entered at the header level these values can be overridden at the Line
Level.
Payment Type: Credit Card integrates with iPayment to obtain authorization. You can mask
sensitive credit card data. Payment capture for credit card orders occurs in Receivables.
Enter Orders
Guided Demonstration - Entering Order Header
In this demonstration you will create the order header information for a new sales order. This
demonstration forms the basis for later demonstrations in this lesson.

(USA)
1. Enter the following values to create a new order header:

− Customer: Business World
− Customer Number: 1608
2. The following values populate based upon the Defaulting Rules within the Vision
demonstration environment.
− Ship To: San Jose (OPS)
− Salesperson: Sprague, Mr. Howard
− Currency: USD
− Bill To: San Jose (OPS)
3. Enter the Customer PO number of Demo-01
4. Accept all other defaults on the Order Header Main tab.
5. (I) Save
Note: When you save the order the Order Number will be automatically generated by a
Document Sequence, which is linked to the Order Transaction Type.
6. Navigate to the Others tab.
7. Note the values that have defaulted:

− Payment Term: 2/10, Net 30
− Warehouse: M1
− Shipping Method: DHL
− Freight Terms: Prepay & Add
− FOB: DEST
− Tax Handling: Standard
8. Change the Payment Terms to 30 Net
9. Enter Packing Instructions: Please call Rachel Abbott in Customer Service upon packing.
Enter Orders
10. (I) Save
Enter Orders
Applying Sales Credits
Order Level Sales Credit Apply

Type
Jane Smith Revenue 50%
John Davis Revenue 50%
Terry Johnson Non-revenue 25%
Order
Line Level Sales Credit Apply

Type
Laura Lee Revenue 100%
Order Line

(N) Orders, Returns > Sales Orders (B) Actions > Sales Credits
Apply Sales Credits for an Order, Line, Split line or Return. If your cursor is on the order
header when you select the Action button, you will split order level credits. If your cursor is
on a line, then you will split line level credits.
Revenue Sales Credits must equal 100%.
If CRM Incentive Compensation is installed, the Sales Credit information will pass to that
module for use in calculating Sales Compensation. Otherwise, the Sales Credit information
will be a reference.
Non Revenue Sales Credits can be applied at 100% or less.
Line Level Sales Credits override the Sales Credits entered on the Header.
Enter Orders
Guided Demonstration - Applying Sales Credits
In this demonstration you will continue to work with the sales order header you created in the
last demonstration. This will show you how to create sales credit splits at the header level of a
sales order.

(USA)
(N) Orders, Returns > Sales Orders (T) Order Information (B) Action > Sales Credits
Note: The Salesperson entered on the Order Header, in the Salesperson field is
automatically given 100% credit of this order towards his/her quota. This activity will
allow you to change the default information for the subsequent lines.
1. Note that 100 percent of the sales credit has been given to the salesperson from the order
header field. In this case Howard Sprague.
2. Reduce Howard’s Quota Sales Credit to 50%

− Tab to the Percent field
− Enter 50.000
Note: The Revenue Credit total at the bottom of the form equals 50%. This total must be
100% before you will be able to leave the form. This total must equal 100 percent as this
information will be passed to Receivables during AutoInvoicing for this sales order.
3. (I) New Record
4. Credit Elizabeth Douglas with the remaining quota credit for the order.
− Salesperson: Douglas, Elizabeth
− Credit Type: Quota Credit
− Percent: 50.000
Note: The Revenue Credit total at the bottom of the form now equals 100%.
5. (I) New Record
6. Credit Jonathan Smith with 25% Non Revenue credit for this order.
− Salesperson: Smith, Mr. Jonathan
− Credit Type: Non-Quota Credit
− Percent: 25.000
Note: The Non-Revenue Credit total at the bottom of the form now equals 25%. As you are
not required to reach 100% allocation for Non-Revenue Credit you will be allowed to leave
the form.
7. (B) Ok and Save
Enter Orders
Practice - Create a Sales Order
Overview
In this practice you will learn how to create a Sales Order Header.
• Enter an Order Header
• Split Order Level Sales Credits
Assumptions
Tasks
Enter an Order Header
1. You have received an order from your customer, Business World (1608). They would like
you to send products and invoices to their usual address in San Jose, CA. They have given
you a purchase order number of XX-98725.
Split Order Level Sales Credits
2. It has come to your attention that Mr. Timothy Cleary is the new salesperson for this account
He was on holiday while the negotiations were under progress. Therefore he will only
receive 25% of the revenue credit for the sales order. Mr. Thomas Kramer finished the
negotiations and should receive 75% of the credit.
Enter Orders
Solution - Create a Sales Order Header
Create Sales Order Header
1. Navigate to the Sales Order window.
• (N) Orders, Returns > Sales Orders
2. Enter the following values to create the sales order header

− Customer: Business World (1608)
− Customer PO: XX-89725
3. Note the values that default into the header:

− Ship To Location: San Jose (OPS)
− Bill To Location: San Jose (OPS)
4. Change the Salesperson to Cleary, Mr. Timothy
Enter Orders
Split Order Level Sales Credits
5. Navigate to the Sales Credits window.
• (B) Action > Sales Credits
6. Create the appropriate split
• Change Timothy Cleary’s quota credit to 25%

− Salesperson: Cleary, Mr. Timothy (should default)
− Credit Type: Quota (should default)
− %: 25.00
• Credit Thomas Kramer with 75 % quota credit

− Salesperson: Kramer, Mr. Thomas
− Credit Type: Quota
− %: 75.00
7. (B) Ok
8. (I) Save and note your order number: ______________________________
Enter Orders
Enter Orders
Agenda
Agenda
• Overview
• Booking Orders
• Copying Orders
Orders
Enter Orders
Line Transaction Type
Controls Line Functionality

The Line Transaction Type controls which Line Level Workflow will be executed when the
Line is saved.
The Line Type controls the level of scheduling allowed on the Line. Example: ATP, Demand,
or Reservations.
The Line Type is restricted to those that have been linked to the Order Type used on the Order
Header.
The Line Type is defaulted from the Header’s Order Type. If the line quantity is positive the
Line Type will default as an Order Line type. If the line quantity is negative the Line Type
will default as a Return Line Type.
Note: The Order Type and the Line Type are both stored on the Order Management
Transaction Type table.
Enter Orders
Line Statuses
Line Statuses
• Entered
• Booked
• Awaiting Shipping
• Picked
• Shipped
• Invoiced
• Closed
Order Line
Line Statuses
Line Statuses on a order:
• The Line Status is maintained by the Line's Workflow.
• Entered is the defaulted value of a new Order Line.
• Booked means your order has been completely entered. Booking your order allows the
Header and Lines to advance to their next Workflow Activity.
• Awaiting Shipping means your order has gone through the workflow activities Schedule-
Line and Create Supply - Line and is now ready to be released for shipping on it’s
Schedule Ship Date.
• Picked means the inventory has been moved to a staging area.
• Shipped means the Line’s delivery has been Ship Confirmed.
• Invoiced means the Line has been passed to Receivables.
• Closed means the Line has been completely fulfilled.
Enter Orders
Entering Line Information
• Line Number Intelligence

1.1.1.1.1
• Ordered Item
• Item Quantity
• Item Unit of Measure (UOM)

(N) Orders, Returns > Sales Orders (T) Line Information (T) Main
The Line Number has a quintuplet format, 1.1.1.1.1 to identify the Line, Shipment, Option,
Component, and Service Lines.
The Ordered Item can be an Internal Item Number, a Customer’s Item Number, or a Cross
Reference Item Number. The Internal Item must be on a Price List. Price List verification is
based on the item number and unit of measure.
The Internal Item’s attribute, Customers Orders Enabled, must be selected.
The Item Quantity is the Open quantity opposed to the original ordered quantity. Quantities
can be whole numbers or decimals. The term open quantity refers to the last amount that Order
Management has been directed to transact. For example. On a sales order the original ordered
quantity is 7, the customer calls and increases their order to 10. You will only see 10 on the
line, not the original value of 7. Also if the original ordered quantity was 7, but the customer
called an cancelled 2, you would only see 5 in the item quantity field. This field is not affected
by shipment activities, merely cancellations and increases in quantity.
Enter Orders
You can order in any Unit of Measure that displays in the List of values, provided that item is
priced via the selected unit of measure. If you select a combination of item and unit of measure
that has not been defined for the price list, you will receive a pop-up window indicating this
issue.
Enter Orders
Entering Line Pricing Information
• Price List
• Calculate Price Flag
• Pricing Agreement
• Pricing Date
• Tax Amount

(N) Orders, Returns > Sales Orders (T) Line Information (T) Pricing
The combination of Internal Item Number and Unit of Measure must be on a Price List. The
Pricing Engine uses the Price List Price for the Unit Price.
The Calculate Price Flag is used by the Pricing engine.
• Calculate Price is the default and means the Pricing Engine will apply qualified discounts
to the Price list price in order to calculate the Selling Price. It also means any qualified
Freight Charges and Special Handling charges will be applied to the Order Line.
• Freeze Price means the Pricing Engine will use the Price List Price as the Selling Price.
No modifiers of any type (discounts, freight charges or special handling) will be applied
to the Order line.
• Partial Price means the Pricing Engine will use the Price List Price as the Selling Price
(no discounts) but it will apply any qualified Freight and Special Handling charges.
Enter Orders
Pricing Agreements can be the source of the Line Price List or it could be the source of an
automatic pricing adjustment.
The Price Date allows you to re-price the Order Line based on different dates until the Line is
invoiced.
The Tax Amount is not included in the line’s extended price. The tax amount is considered an
estimated tax until interfaced to Receivables. Use the Action menu to View Tax Details or
Calculate Tax.
Enter Orders
Guided Demonstration - Entering Line Pricing Information
(USA)
(N) > Orders, Returns > Sales Orders > (T) Line Items > (T) Pricing
1. Select a Price List or accept default.
2. Select a Calculate Price Flag or accept default.
3. Select an Agreement or accept default.
Note: You will only be allowed to choose a generic Agreement or those that are created
specifically for your customer.
4. Select a Pricing Date or accept default.
Note: The Pricing Engine will calculate the Unit Price and the Extended Price.
Enter Orders
Enter Orders
Line Pricing Fields
Line Pricing Fields
• Unit Price / Unit Selling Price
• Extended Price / Line Total
• List Price
Line Pricing Fields

The Unit Price is calculated by adjusting the price list price with any qualifying modifiers
(discounts and surcharges).
The Unit Selling Price and the Unit Price hold the same value. The Unit Price is displayed in
the Line’s Main tab region, upon opening the order line. The Unit Selling Price is displayed in
the Pricing tab region.
The Extended Price and the Line Total hold the same value which is the Unit Price times the
line quantity. The Line Total is displayed upon opening the record and stays visible, regardless
of what tab you are on. The Extended Price is displayed in the Pricing tab.
Use the Action menu to Reprice the line if the price on the Price List changed or if new
Modifiers have been established that may apply to your order line.
Enter Orders
Line Date Fields
Line Date Fields
• Request Date
• Promise Date
• Schedule Ship Date
• Schedule Arrival Date
Line Date Fields

(N) Orders, Returns > Sales Orders (T) Line Information (T) Shipping
There are multiple dates within the Sales Order form. The fields for Line Date are:
• The Request Date is the date your customer wants the line to ship.
• The Promise Date is the date you have promised your customer you will ship.
• The Schedule Ship Date is the date demand is placed against inventory.
• The Schedule Arrival Date is the date the material is scheduled to arrive at the customer’s
Ship to location.
• The Schedule Ship dates and the Scheduled Arrival dates are populated by the Schedule -
Line workflow activity.
• The Schedule Ship dates and the Schedules arrival date are displayed two times. Once in
the Main region and again in the Shipping region.
• Modify your Schedule Ship date to reschedule line, as needed.
Enter Orders
Entering Line Shipping Information
• Warehouse
• Line Source Type
Internal External
• Ship Method

The Warehouse represents the Inventory Organization that will be filling the Order Line.
Ship Method is the suggested carrier. The Ship Method can be used as part of the Pick Release
selection criteria.
Shipment Priority codes are user defined and can be used as part of the Pick Release selection
criteria.
The Line Source Type indicates from where the sales order line will be filled, either internally
or externally.
• Internal - the Order Line will be filled internally from the line warehouse.
• External - the Order Line will be filled directly from your Suppliers site. For more
information about External Sourcing please see the Advanced Topic on Order
Management Drop Shipments.
Enter Orders
Guided Demonstration - Entering Line Shipping Information
(USA)
(N) > Orders, Returns > Sales Orders > (T) Line Items > (T) Shipping
1. Select a warehouse or accept default.
2. Accept the Source Type of Internal.
3. Select a Schedule Ship date
4. Select a Shipment Priority or accept default.
5. Select a Freight Term or accept default
6. Enter Shipping Instructors or accept default.
7. Enter Packing Instructions or accept default.
Enter Orders
Guided Demonstration - Entering Line Information
In this demonstration you will continue to work with the sales order header you created earlier in
this lesson. This demonstration will show you how to enter line information into your sales
order.

(USA)
(N) Orders, Returns > Sales Orders (T) Line Items (T) Main
Note: The line number is automatically generated.
1. Enter the following values to create a new sales order line:

− Item: CM13139
− Qty: 15
− Request Date: Today + 7 days
Note: The unit of measure defaults from the primary unit of measure for the internal item
selected. Also see that the Line Type has defaulted as Standard based upon the Transaction
Type. If you receive the message Item and UOM not on Price List it means you have
selected an Item which is not on the price list that defaulted from the header.
2. (T) Pricing
Note: The Calculate Price Flag is set to Calculate Price and the Pricing Date defaults to the
current date.
3. (T) Shipping
Note: The Warehouse defaults to M1 and the Source to Internal.
4. (I) Save
5. Enter a second sales order line

− Item: CM11062
− Qty: 10
− Request Date: Today + 7 days
6. (I) Save
Enter Orders
Practice - Create a Sales Order
Overview
In this practice you will learn how to create a Sales Order Line for a sales order previously
created..
• Enter an Order Line
Assumptions
• You have completed the practice: Create Sales Order Header from earlier in this lesson.
Tasks
Enter a Order Lines
3. Business World has provided information regarding the items they wish to purchase from
their purchase order number XX-98725.
4. The first item they would like is your CD – Writer with an internal part number of CM00037.
They have requested 5 units to be shipped today. As you have them in stock you are able to
comply with their request. Since this is a last minute order, mark the shipment High Priority
to gain the attention of the shipping department.
Enter Orders
Solution - Create a Sales Order Line
Create Sales Order Line
9. Navigate to the Sales Order window and query your sales order header from the previous
exercise.
• (I) Find
• Customer Name: Business World (#1608)
• Customer PO: XX-98725
• (B) Find
10. (T) Line Information (T) Main
11. Enter the appropriate information for a sales order line:

− Item: CM00037
− Qty: 5
− Request Date: today’s date
Enter Orders
12. (T) Shipment
− Shipment Priority: High Priority
Enter Orders
13. (I) Save
Enter Orders
Entering Line Sets
Entering Line Sets
Three Line groupings are available

– Ship sets
– Arrival sets
– Fulfillment sets
Automatically put Lines into Sets.
Shipping can break Sets.
Entering Line Sets

When entering Line Sets: Use the Right Mouse Click menu to create and maintain Line Sets.
Line Set names can be alpha/numeric. Set the Header Line Set to Arrival or Ship, to
automatically put lines into sets. At Ship confirmation you are informed if you are breaking a
Set.
Ship Sets
Group all the lines your customer requests to be shipped at the same time from the same
warehouse on the same date.
Arrival Sets
Group all the lines your customer wishes to arrive at their Ship-To location at the same time.
These can come from different warehouses. Arrival Sets which are shipping from across your
supply chain need Oracle’s Advanced Planning application to coordinate.
Fulfillment Sets
Group all the lines the customer would like invoiced at the same time. The fulfillment set
enables non shippable lines to wait until their associated shippable lines have been ship
confirmed before passing them for Invoicing. An Order Line can belong to multiple
Fulfillment Sets. Fulfillment is controlled by the Line workflow. The final determination as to
Enter Orders
whether the lines will appear on the same invoice is determined by the grouping rules
associated with the customer record.
Enter Orders
Guided Demonstration - Entering Line Sets
In this demonstration you will create a line set for a new sales order.

(USA)
(N) Orders, Returns > Sales Orders
1. Create a new sales order for Business World.

− Customer PO: Demo-02
2. (T) Line Information
3. Add a sales order line

− Item: AS54888
− Qty: 15
4. (I) New Record

− Item: AS18947
− Qty: 10
6. Place these two lines into a Ship Set
• (M) Edit > Select All
• Place your cursor on the quantity field
• Right Mouse Click > Sets > New > Ship Set
− Name: Ship Set 1
• (B) Ok
7. Place these two lines into a Fulfillment Set
• (M) Edit > Select All
• Place your cursor on the quantity field
• Right Mouse Click > Sets > New > Arrival Set
− Name: Arrival Set 1
• (B) Ok
Enter Orders
8. (T) Shipping
− View your results in the Ship Set and Fulfillment Set fields.
Enter Orders
Enter Orders
Entering Line Addresses
Order Management Supports

Multiple Bill-to and Ship-to Addresses

Each Sales Order line or line spit can have a different Bill-to or Ship-to Address.
Customer relationships can be established to allow the sharing of bill-to and ship-to addresses
across your Customer base.
Enter Orders
Entering Return Information
• Copy original Sales Order and Change the Order

Type to a Return Type
• Manually Enter a Return and Optionally Reference:
Sales Order Number
Invoice Number
Customer’s Purchase Order Number
Item’s Serial Number
• Seeded Return workflows handle:
Return with Receipt, and Credit
Return with Receipt, No Credit
Credit Only, No Receipt
Approval Required
• Returns can be initiated from your CRM modules
• Optionally Inspect Returns prior to issuing Credit

If your customer requests to return their whole Sales Order use the Action menu to Copy the
original Order and change the Order Type to a Return Type.
Manually enter a Return and optionally reference the original Sales Order, an Invoice Number,
their PO number or the Item’s Serial Number. Referencing the Return line allows the
defaulting process to default many of the line fields, such as item number, item quantity,
selling price and Invoice Number.
The Credit Amount for Return Lines that do not have a reference will be applied On Account.
Seeded Return Workflows are provided to meet common return business processes.
Returns can be initiate in the Customer Support or Service modules.
Item attributes that are checked are Returnable and Inspection Required.
You can allows both Inbound and Outbound lines on the same Order to accommodate
Advanced Replacement requirements.
Use the Action - Additional Information menu to see Return data.
Enter Orders
Ordering Service Programs
Service Programs
Can be ordered to cover Inventory Items

If the Line Item has been set up as a Serviceable Product your customer can purchase a Service
Program to replace or augment the product’s warranty.
Your Service Programs can cover a line Item or a Customer Product in your Installed base.
(Component of our CRM Suite -The Installed base is a repository of shipped products).
Enter Orders
Guided Demonstration - Ordering Service Programs
In this demonstration you will create a sales order that includes the sales of a service item, tied to
a finished good.

(USA)
1. Create a new sales order for Business World


− Item: AS54888
− Qty: 10
4. Accept all other defaults and (I) Save
5. Add a second line

− Item: WR18533
− Qty: 10
3. (T) Services
− Service Reference Type: ORDER
− Service Order Type: Mixed
Note: this needs to be the same value as the order header – it drives the list of values for
the service order number
− Service Ref Order Number: enter this order number
− Service Ref Line Number: choose the line with AS54888 on it. (should be 1)
3. (I) Save
Note: The system has automatically updated the Order Line to show that it is a Service
Program for your other line item.
Enter Orders
Entering Project Information
Entering Project Information
With Project Manufacturing Installed

You can associate each Order Line to:
• A Project number
• A Task number
• A Model / End Item
Enter Orders
Splitting Order Lines
• Multiple Shipment Dates
• Multiple Ship to Locations
• Multiple Ship from Warehouses
Order Lines

Use the Action button to Split the Order Line. Each Split of a line can progress independently.
Except for a few fields such as the item number and Line Type each split of a line can have it’s
own field values.
Enter Orders
Guided Demonstration - Splitting Order Lines
In this demonstration you will split the quantity of a sales order line on a new sales order.

(USA)
1. Create a new sales order for Business World.


− Item: CM13139
− Qty: 30
4. (B) Actions > Split Line
5. Create the Split for the line

− Qty: 15
− (I) New Record
− Qty: 10
− Date: Today + 7 days
− (I) New Record
− Qty: 5
− Date: Today + 14 days
6. (B) Split
7. (I) Save
Note: The Line number now reflects that there are 3 shipments.
Enter Orders
Practice - Split Line and Create Ship Set
Overview
In this practice you will learn how to split a sales order line into scheduled shipments and place
lines into a ship set.
• Split an Order line into Shipment Schedules
• Create a Ship Set
Assumptions
Tasks
Split an Order line into Shipment Schedules
1. Business World (1608) has contacted you to place another order. This order is for purchase
order XX-99258.
2. They wish to order 100 units of your part CM11166, which are replacement laptop batteries.
However, they do not have room for all of the batteries on the same date. Therefore they
have asked you to ship them in two lots of 50 units each, one week apart.
Create a Ship Set
3. Business World has also indicated that they are in need of 5 more Laptops, part number
AS92689. They would like them shipped at the same time as the second shipment of
batteries.
Enter Orders
Solution - Split Line and Create Ship Set
Split an Order line into Shipment Schedules
1. Navigate to the Sales Orders window
2. Create a new sales order for Business World

4. Enter a new sales order line

− Item: CM11199
− Qty: 100
6. Create a shipment schedule

− Qty: 50
− Date: Today’s date
− (I) New Record
− Qty: 50
− Date: Today’s date + 7
7. (B) Split
Create Ship Set
8. (B) Split
Enter Orders
9. (I) New Record
10. Add another line to sales order

− Item: AS92689
− Qty: 5
− Requested Date: Today’s Date + 7
11. Create ship set including line 1.2 and 2.1
• Using Shift + Left Mouse click, highlight lines 1.2 and 2.1
• Right Mouse click > Sets > New > Ship Set
• Enter Set Name: XX-SS1
• (B) Ok
12. (T) Shipping
13. View results of ship set creation.
Enter Orders
14. (I) Save
Enter Orders
Applying Attachments
Apply Order level or Line level Attachments
Optionally Print Attachments on:

• Sales Order Acknowledgment
• Picking Papers
• Shipping Papers
Automatic or
Manual
Standard notes can be setup with automatic addition rules to apply notes to your Order Header
or Order Line. You can also manually apply a note to the Order Header or Order Line.
Use the Action - Apply Automatic Attachments menu or set your Profile Option OM: Apply
Automatic Attachments to have notes applied automatically.
• Attachments appear as a piece of paper (note) in the paper clip icon.
• Use the Attachment (paper clip) icon to View or Add a Note to your Order Header or
Order Line.
• Attachments can be short text, long text, as well as images or web pages.
• Attachment Categories define where the attached note will print.
Enter Orders
Guided Demonstration - Applying Attachments
(USA)
(N) > Orders, Returns > Sales Orders > (T) Order Information > (T) Main
1. Select a Customer.
2. Select an Order (Transaction) Type or accept default.
3. Select a Price List or accept default.
4. Select a Ship To location or accept default.
5. Select a Salesperson.
6. Accept the Currency default.
7. Select a Bill To location or accept default.
8. Click on the (I) Attachments (paper clip).
9. Accept the default for Seq.
10. Select a Category.
11. Enter a short description of your Header note.
12. Enter your Header note in the large text box.
13. Save.
14. Click on the (T) Line Items > (T) Main
15. Select an Ordered Item.
16. Enter a quantity.
17. Click on the (I) Attachments (paper clip).
18. Accept the default for Seq.
19. Select a Category.
20. Enter a short description of your Line note.
21. Enter your Line note in the large text box.
Enter Orders
22. Save.
Note: When the order is refreshed you will see a Note in the Paper clip.
Enter Orders
Enter Orders
Agenda
Agenda
• Overview
• Booking Orders
• Copying Orders
Orders
Enter Orders
Scheduling - Available to Promise
• Check ATP using the

Availability Button
Order Clerk Inventory

Click on the Availability button to see if you have enough inventory to meet the sales order
demand.
The ATP Rule, item attribute, that is associated with the line item, is used to calculate
inventory that will be available by the Schedule Ship Date.
If there isn’t an ATP Rule associated with the item, the system will use the Shipping
Warehouse’s default ATP Rule from it’s Parameters record.
If there isn’t enough inventory to cover the demand the ATP rule uses the item’s lead time to
calculate the ATP Date (the date when you could fill the order). The lead time that will be used
is based on the ATP Rule’s Infinite Supply time fence.
ATP returns a Group Date, representing the component with the longest lead time, for an
Assemble to Order, Pick to Order Model or PTO Kit if the Item’s attribute Ship Model
Complete is set to yes. It also returns a Group ATP date for Ship Sets and Arrival Sets.
Enter Orders
Guided Demonstration - Scheduling Available to Promise
In this demonstration you will learn how to check availability for an item on a sales order.

(USA)
1. Query your order from an earlier demonstration
• (I) Find
• Customer: Business World
• Customer PO: Demo-04
3. Place your cursor on one of the lines
4. (B) Availability
Note: This is only an inquiry. It has no affect on Inventory.
Enter Orders
Scheduling - Schedule
• Place Demand
(Schedule)
An Ordered Item’s attribute OE Transactable must be set to yes to enable demanding
inventory.
What does scheduling do?
• Sets the Order Line’s Ship and Arrival schedule dates.
• Passes the demand to Inventory.The Sales order demand consumes the item’s forecast.
• It can place a Reservation if the Order’s Scheduled Ship Date is within the value entered
for the OM: Reservation Time Fence profile option.
• It calculates the delivery lead time and ship method (if you have set up Inter-Location
Transit Times).
You can prevent over demanding by setting the item’s attribute Check ATP. When this item
attribute’s value is Material or Material & Resources, Scheduling will not place demand unless
there is enough available inventory.
Enter Orders
Guided Demonstration - Scheduling an Order Line
In this demonstration you will schedule an order line.

(USA)
1. Create a new order for Business World

− Customer Name: Business World (1608)
3. Create a new sales order line

− Item: CM13139
− Qty: 45
4. (M) Tools > Scheduling
5. Select Schedule (B) Ok
6. (T) Shipping
Note: The Schedule Date and Arrival Dates have been populated.
Note: To prevent reserving inventory while scheduling you must do one of the following:
− a) Set the System Profile Option OM: Reservation Time Fence to NULL (blank).
− b) Or enter a line Schedule Ship Date outside the Reservation Time Fence.
Enter Orders
Scheduling - Reserve
• Place Reservation
The Ordered Item’s attribute Reservable must be set to yes.
Reserving inventory assures that the quantity will be available when the Order Line is
Released for shipping.
The Item’s Reservation is removed when inventory is decremented for the shipped quantities
or if the order line is canceled.
Enter Orders
Guided Demonstration - Reserving an Order Line
In this demonstration you will reserve an order line.

(USA)
1. Create a new order for Business World


− Item: CM13139
− Qty: 20
4. (M) Tools > Scheduling
5. Select Reserve (B) Ok
6. (T) Shipping
Note: The Schedule Date, Arrival Dates and Qty Reserved have been populated.
Enter Orders
Practice - Schedule Order
Overview
In this practice you will learn how to Schedule an Order both manually and automatically.
• Create Sales Order
• Check Availability
• Schedule (Demand)
• Place Reservation
• Turn on Auto Schedule
Assumptions
• The following Profile Options have been set:
• OM: Auto Schedule = NO
• OM: Reservation Time fence = 30
Tasks
Create a Sales Order
5. Business World has provided information regarding the items they wish to purchase from
their purchase order number XX-002. They wish to order 5 units of AS54888 45 days from
today’s date.
Check Availability
6. Check to see if the part Business World is requesting is available.
Enter Orders
Schedule Order
7. If there is quantity available. Schedule the line.
Place a reservation for your order line
8. Corporate policy states that if there is sufficient quantity, reserve inventory for our priority
customers like Business World.
AutoSchedule effect
9. As a part of your company’s ongoing testing, use the AutoSchedule functionality when
entering another line on this same order for Business World. They have requested an
additional quantity of 2 units of part number AS18947.
Enter Orders
Solution - Schedule Order
Create a Sales Order
1. Navigate to the Sales Order Window
• (N) Order, Returns > Sales Orders (T) Order Information (T) Main
2. Create Sales Order Header

3. (I) Save
5. Create an order line

− Item: AS54888
− Qty: 5
− Request Date: Today’s date + 45 days
Check Availability
6. (B) Availability
Schedule Order Line
7. (M) Tools > Scheduling > Schedule
Enter Orders
8. (T) Shipping
Notice that the schedule ship date has been set to the request date.
Reserve Sales Order Line
9. (M) Tools > Scheduling > Reserve
Enter Orders
10. (T) Shipping
Notice that the Qty Reserved field has been populated.
AutoSchedule effect
11. (M) Tools > Auto Schedule (make sure this is checked)
12. (I) New Record

− Item: AS18947
− Qty: 2
Note: Tab out of the quantity field to see the Availability displayed automatically.
14. (I) Save
15. (T) Shipping
Notice that the Qty Reserved field has been populated.

Enter Orders
Enter Orders
Scheduling Options
Scheduling Options
On-Line at Sales Order Entry

• Auto Scheduling
• Using Tools Menu or right mouse click to select
Schedule, Unschedule, Reserve, or Unreserve
Workflow Process
• Schedule-Line
• Create Supply-Line Process
Concurrent Program
Scheduling Options
Order Management uses the Profile option OM: Auto Schedule. When it is set to yes all
scheduling activities are executed on-line from the Order Line including the automatic pop of
the Availability window.
Use the Availability button to manually Check ATP.
Use the Tools - Schedule menu to manually Schedule or Reserve your order line.
Scheduling occurs in the Workflow Process Schedule - Line for standard items and Create
Supply-Line Process for a Configured Item.
The Order Type and the Line Type need to have the field Scheduling Level set to allow
scheduling actions.
Optionally have Scheduling running in the background as a Concurrent Request.
The OM: Schedule Orders on Hold Profile Option is used by the Scheduling function.
Enter Orders
Agenda
Agenda
• Overview
• Booking Orders
• Copying Orders
Orders
Enter Orders
Booking Orders
Booking Orders
• Only valid orders will be Booked
• Booking allows the Header and Lines

to proceed to their next workflow activity
• All Booked Order updates, inserts and

cancellations must pass your Processing
Constraints
• A Quantity History record is kept for all

quantity decreases
Booking Orders
Booking affects both the Header and Lines. Orders are only booked once. Changes to a
booked order do not required it to be re-booked.
Once booked, Processing Constraints control updates to all Order Entities: Header, Lines,
Sales Credits, Price Adjustments.
Processing Constraints also control which Responsibilities will be allowed to make changes to
a Sales Order/Line.
Quantity decreases are the only changes which are tracked.
Enter Orders
Guided Demonstration - Booking Orders
In this demonstration you will see the several ways to book an order in the E-Business Suite.

(USA)
1. Find an unbooked Sales Order

− (I) Find
− Customer Name: Business World
− (B) Find
2. (B) Book Order
3. Find an unbooked Sales Order

− (I) Find
− Customer Name: Business World
− (B) Find
5. (B) Book Order
Note: Both paths give the same results.
Enter Orders
Practice - Book Order
Overview
In this practice you will learn how to Book an Order then view the Order’s workflows.
• Book Sales Order
• View the Order Workflow
• View the Line Workflow
Assumptions
• You have completed the practice: Create Sales Order Line and practice: Split Line and
Create Ship Set earlier in this lesson.
Tasks
Book Sales Order
1. You are required to book your sales orders before they can be processed. Your supervisor
has indicated that the sales orders associated with Business World (1608) purchase order X
XX-98725 has not yet been booked.
View Order Workflow
2. As a part of your on going training – your supervisor has requested that you check on the
order you have just booked, to determine where in the order process they have advanced to.
View Line Workflow
3. As a part of your on going training – your supervisor has requested that you check on the
lines for the order you have just booked, to determine where in the order process they have
advanced to.
Enter Orders
Solution - Book Order
Book Sales Order
1. Navigate to the Order Organizer form
• (N) Orders, Returns > Order Organizer
2. Find your sales order number

3. (B) Book Order
View Order Workflow
4. (M) Tools > Workflow Status
5. Click on the OM Order Header link.
6. (B) View Diagram
7. Double click on the Close – Order.
8. Notice that the order is waiting for the lines to close.
Enter Orders
9. (B) Zoom Out.
10. Close the Workflow diagram window.
View Line Workflow
12. Click on the OM Order Line link
13. (B) View Diagram
14. Double click on the Enter – Line activity.
15. (B) Zoom out.
16. Double click on Schedule – Line
Enter Orders
17. (B) Zoom out
18. Double click on Create Supply - Line
19. (B) Zoom out
20. Double Click on Ship Line – Manual.
21. Close the Workflow Diagram window.

Enter Orders
Agenda
Agenda
• Overview
• Booking Orders
• Copying Orders
Orders
Enter Orders
Copying Orders
Copying Orders
Copy
• Speed data entry
• Correct errors Order
• Create Returns
• Copy whole Order or selected Lines
• Optionally Reprice the Copy
• Must pass your Processing Constraints
Copying Orders
Reasons to copy orders:
• A customer calls and orders the same items as on a previous Sales Order, use the Copy
window to quickly create a new order.
• Your Order Clerk enters incorrect data, such as the Order Type, use the Copy window to
create a new sales order, then modify as needed.
• Your customer calls and tells you they are returning a whole Order find that order
number and use the Copy window to quickly create a Return Order.
Copy functionality:
• Use the Action menu to access the Copy window
• The copy function must pass all processing constraints.
• Copy options:
- Change the Order or Line Type for the Copy.
- Copy at the original selling price or re-price as of a given date
- Copy selected lines to an existing order.
Enter Orders
Guided Demonstration - Copying Orders
In this demonstration you will see how to copy orders.

(USA)
1. Find an existing sales order

− (I) Find
− (B) Find
2. (T) Order Information (T) Main
3. Copy this order
4. (B) Actions > Copy
5. (T) Quick Copy

− Accept default option to Create New Order.
6. (T) Copy Header

− Accept all defaults
7. (T) Copy Line

− Line Type: leave blank
8. (T) Pricing Option

− Accept default options
9. (B) OK
Note: A Note window pops telling you the copy succeeded along with the new Order
Number.
Enter Orders
Practice - Copy a Sales Order
Overview
In this practice you will learn how to create a new order from an existing order.
• Copy Order
• Change the Ship to Address
• Add a new line item
• Book Sales Order
Assumptions
• Your instructor will provide login information
• Replace XX with the number provided by your instructor or your initials
• Use Order Management Super User, Vision Operations (USA) or comparable Super User
Order Management responsibility.
• You have completed the practice: Create Sales Order Line and practice: Split Line and
Create Ship Sets earlier in this lesson.
Tasks
Copy Order
1. Your customer Business World (1608) has contacted you and wishes to order the same
products as on their purchase order XX-98725.
Change Ship To Address
2. Business World wishes to change the shipping location for this sales order to their New York
facility.
Add new line
3. Additionally they would like to order 1 Envoy Deluxe Laptop, part number AS 72111.
Book Sales Order
4. Remember to book this order.

Enter Orders
Solution - Copy a Sales Order:
Copy Order
1. Navigate to the Order Organizer
2. Find desired sales order

− (I) Find
− (B) Find
3. (B) Action > Copy
Enter Orders
4. (B) Ok
5. Accept all the defaults
6. (B) Ok
7. Note new order number: _________________________________
Change Ship To Address
8. Find the Sales Order you just copied

− (I) Find
− Order Number: from above
− (B) Find
9. (B) Open
Enter Orders
10. Select the Ship To Location field and open the list of values. Search for the New York
(OPS) address.
11. (B) Ok
12. (I) Save
Add new line
14. Create a new line for this sales order

− Item: AS72111
− Qty: 1
Enter Orders
Book Sales Order
15. (B) Book Order
Enter Orders
Agenda
Agenda
• Overview
• Booking Orders
• Copying Orders
Orders
Enter Orders
Drop Ship Overview
Drop Ship Overview
Standard Item Shipment
Supplier Customer
Purchase Order
Supplier Invoice Customer Payment
Customer Invoice Customer Invoice
Order Processing Company
Drop Ship Overview

Drop Ship Order Lines ship directly from your supplier to your customer.
Order Management creates the Purchase Requisition and passes it to Purchasing. The Purchase
Order is created from the requisition. The Approved Purchase Order is released to your
Supplier.
Purchasing receives an ASN (Advance Shipping Notice) when the supplier fills the order.
Purchasing performs a Receiving transaction which will post to the general ledger, creating an
accounts payable transaction.
An automatic interface creates a Shipping transaction which updates the Order line with
shipped data. This allows the Order to proceed to the workflow activity Invoicing. The Invoice
Revenue account will be posted to the general ledger creating an accounts receivable
transaction.
After you create the Purchase Requisition any changes made to the Drop Ship Sales Order will
appear on the Order Discrepancy Report.
It is the responsibility of the Purchasing department to notify the Supplier if an Order changes.
Enter Orders
Guided Demonstration - Creating Drop Ship Order Lines
(USA)
(N) > Orders, Returns > Sales Orders > (T) Line Items
1. Select an Ordered Item that has its item attribute Purchasable selected.
Note: If you are using the Vision Data base you can use AS18947.
3. Click on (T) Shipping.
4. Enter the Source Type of External.
5. Click on the (B) Book Order.
6. View the workflow status for the Order line.
(M) > Tools > Workflow Status. View Diagram.
7. Double click on the Create Supply - Line activity.
Note: The Order line is waiting for the Purchase Release - Deferred process to run.
Note: The Workflow background process must run to kick off the Purchase Release
process.
(N) Reports, Requests > Run Requests > Single Request
8. Select the name Workflow Background Process.
9. In the Parameters window enter:

− Item Type: OM Order Line.
− Process Deferred: Yes.
− Process Time Out: Yes.
− Process Stuck: No
10. (B) OK.
11. (B) Submit.
12. When the concurrent request has completed.
Enter Orders
(N) > Orders, Returns > Sales Orders > (T) Line Items
13. Scroll to see the Line status.
14. Confirm that it is Awaiting Receipt.
Note: All other processing of a Drop Ship Line is performed by the Purchasing Department.
Enter Orders
Internal Requisition Overview

Create Manually
or Automatically
Internal Requisition
Run “Create Internal Sales Order”
Run “Order Import”
Sales Order
Schedule Order
Inventory Release Order

Ship Confirm Receive
At Cost
Direct In transit Inventory At Cost

The purpose of an Internal requisition is to transfer inventory from one Organization to
another. When using Internal requisitions:
• The Item must be Purchasable and must be enabled both in the Requesting Organization
and the Shipping Organization.
• An Internal requisition may be used as an exception to a shortage, or it may be the normal
replenishment process. The Requesting Organization’s Shipping Network determines
whether an Internal Requisition is required or not. The method of transfer and method of
receipt will also be defined in the Shipping Network. The Shipping Network can also be
used to add on an additional charge (percent or amount) to markup for shipping and
handling.
• An Internal Requisition could be created automatically by Inventory’s Min/Max Planning
or Re-Order Point Planning programs if the shortage Item’s Sourcing Type is set to
Inventory.
• The Requesting Organization must be set up as a Customer and the Ship-to address must
be associated with a Purchasing Location. The Requesting Organization will do an
Enter Orders
Purchase Receipt to record the receipt of material. This ends the process since all
accounting is done at cost.
Enter Orders
Agenda
Agenda
• Overview
• Booking Orders
• Copying Orders
Orders
Enter Orders
Import Orders Processing
Import Orders Processing
EDI
Transactions External Systems
Order Import
Import Order Processing

There are two ways other applications can pass Sales Orders to Order Management:
• Use the Order Capture API.
• By passing records through the Orders Interface table.
Running the Import Orders program passes records from the Interface table to the Orders table.
Defaulting Rules and Processing Constraints are used to assure that only valid orders are
transferred.
When populating the Orders Interface, Order Management requires a Source be provided for
each record. Example: Internal, EDI, External System.
Only sources created in the Order Import Source table will be recognized by the import
program.
Orders can be pulled out of the Interface table by Source, enabling you to expedite rush orders.
Enter Orders
Guided Demonstration - Running Order Import
In this demonstration you will see how to run the Order Import Process.

(USA)
(N) Orders, Returns > Import Orders > Order Import Request.
The Parameter window will pop open
1. Select an Order Source or leave it blank to import all records in the table.
2. Accept all defaults.
3. (B) OK
4. (B) Submit
5. View your submitted request

− (M) View > Requests
− (B) Find
− When the concurrent process Import Orders has completed view the Output file to
see the results
Enter Orders
Agenda
Agenda
• Overview
• Booking Orders
• Copying Orders
Orders
Enter Orders
Required Setup Steps for Entering Orders
Required Setup Steps for Entering Orders
The following setup steps are specific to the

implementation of entering orders:
• Profile Options
• Parameters
• Invoicing
• Tax
• QuickCodes
• Workflow
Enter Orders
Additional Required Setup Steps
Additional Required Setup Steps
The following setup steps are specific to the

implementation of entering orders:
• Document Sequencing
• Order Import Sources
• OM Transaction Types
• Customers
• Items
Enter Orders
Profile Options
Profile Options
Some key profile options related to Entering Orders:

• OM: Apply Automatic Attachments
• OM: Autoschedule
• OM: Invoice Source
• OM: Invoice Transaction Type
• OM: Item Flexfield
• OM: Source Code
• Sequential Numbering
Profile Options
(N) Profile > System
There are a number of Profile Options that will affect entering sales orders. Some of the key
profile options are:
• OM: Apply Automatic Attachments – This profile option determines whether rule-based
attachments are applied without user intervention.
• OM: Autoschedule – This profile determines the default setting of the use of
autoscheduling. There is no default value. If set to Yes, the order lines are automatically
scheduled.
• OM: Invoice Source – This value is transferred if the value for your transaction type is
null.
• OM: Invoice Transaction Type – This value is transferred if the value for your transaction
type is null.
• OM: Item Flexfield – This required profile option determines the structure of the System
Items flexfield used by Order Management. This structure should be the same across all
applications in the same database.
Enter Orders
• OM: Source Code – This required profile option defaults the value ORDER ENTRY and
identifies the source code that Order Management passes to Inventory during scheduling.
The source code should be defined as the third segment of the Sales Order Transaction
Flexfield to guarantee that each transaction is unique.
• Sequential Numbering – This required profile option affects how sequential number is
triggered within the E-Business Suite. The Order to Cash process uses Document
Sequencing for Order Management document numbering.
Enter Orders
Parameters
Parameters
Customer
Operating Unit Relationships
Item Validation
Organization
Parameters
(N) Setup > Parameters
The parameters window in Order Management identifies:

• Operating Unit – The operating unit can provide additional defaulting information for
processing orders and returns if certain order information is not entered.
• Item Validation Organization – indicates the inventory organization against which items
are validated. Typically this value is the Item Master Organization for the
implementation.
• Customer Relationships – enables the sharing of Ship To and Bill To locations between
related customers. If this check box is not selected, you can only select Ship To and Bill
To locations for an order that belong to the Customer sold to on the order.
Enter Orders
Steps Related to Invoicing
Some set up steps affect invoicing, but are used

within the enter orders process:
• Payment Terms
• AR Transaction Types
• Invoice Rules
• Invoice Batch Sources

Payment Terms, AR Transaction Types, Invoice Rules and Invoice Batch Sources are all used
during the order entry process and therefore must be considered during implementation of
Entering Orders. However, for the purposes of this course, these topics are addressed in the
lesson Implement Customer Invoicing.
Enter Orders
Tax
Tax
Tax Group
Tax Code
Items Customers Sites
Options, Controls, Sales Order with Tax

and Defaults Estimate
Tax
Tax is an important part of the entering orders implementation. In this Order to Cash course
please refer to the Tax Accounting Overview lesson and the Advanced Topic: Global Taxes in
Order to Cash.
Enter Orders
Quick Codes
Quick Codes
Sales Channel Freight Terms
Shipment Priority
Quick Codes
(N) Setup > Quick Codes > Order Management
You can create lookup codes for Order Management. QuickCode types that you can define
include:
• Cancellation Codes
• Credit Cards
• Freight Terms
• Hold Types
• Note Usage Formats
• Release Reasons
• Sales Channels
• Shipment Priorities
You can create as many quickcodes as you require. You can also inactivate quickcodes.
Enter Orders
Workflow
Workflow
• Workflow allows Order

Management to
process different types
of orders.
• This allows the order
to travel from entry to
fulfillment
Workflow
Order Management enables you to model your organization's processes in terms of generic
order processes. When defining a new workflow, you can start with the basic activities of order
processing. You can model your business processes by copying and editing seeded processes
or model your business processes by using seeded and custom activities as components.
Required set ups include evaluating the delivered order level and line level flows. As a part of
this process you may need to define additional process flows or add customer specific
workflow packages (PL/SQL).
Enter Orders
Document Sequencing
Document Sequencing
45682 45683 45684
Document Sequencing
Order Management utilizes AOL Document Sequence functionality for order numbering. You
can define document sequences that automatically generate numbers for your orders and
returns as you enter them. You can define a single document sequence to assign unique
consecutive numbers to all your orders and returns, or you can define multiple document
sequences that are assigned to different order types. In the latter case, an order or return is
uniquely identified by its type and its number, since orders and returns of different types may
share numbers. Order and return numbers cannot contain alphabetic characters.
Order Management uses the Profile Option Sequential Numbering set to Always Used to
guarantee the correct assignment of document numbers.
There are four steps that must be performed for document sequencing to be enabled:
• Set Sequential Numbering profile option
• Define Document Sequence – this is where the value is derived
• Define Document Category – this maps to the Order Management Transaction Type
• Assign Sequence to a Category
Enter Orders
Order Import Sources
Sales Orders

(N) Setup > Orders > Import Sources
You can define Order Import Sources from which to import order information. You can import
historical orders, orders from other quote or sales systems, and changes
to orders.Oracle recommends that you define a unique name for each source of order
information you are importing. When you run the Order Import program, you can enter the
source or sources for each execution. You can run Order Import for multiple sources at one
time.
Enter Orders
OM Transaction Types
OR Price List
Credit Check
(N) Setup > Quick Codes > Order Management
Order Management Transaction Types are used to classify and control sales orders and their
lines. For each Transaction Type, which is labelled as an Order Type on the Sales Orders
form, you can assign a default price list, payment terms, and freight terms in addition to the
workflow and credit checking assignments which are also assigned on this entity.
Oracle does not deliver any Order Management Transaction Types, therefore all transaction
types must be defined and implemented by the customer. The most important fields associated
with the Transaction Type are the associated Header and Line level workflows that control
how sales orders will be processed if associated with that specific transaction type.
Enter Orders
Customers
Customers
Customers
Customers are a required entity when entering a sales order. For more information about
defining customers and parties please see the lesson Managing Parties and Customers.
Enter Orders
Items
Items
Items
Items are required for the order to cash process. For information on how to setup items and
their related components, please see the lesson on Items.
Enter Orders
Optional Setup Steps for Entering Orders
Some setup steps may be helpful to within the Order

to Cash process relating to Entering Orders:
• Salespersons
• Defaulting Rules
• Credit Checking
• Attachments
• Freight Charges and Carriers

These setup steps are considered optional, but are an important part of the entering sales order
implementation process
Salesperson
Salespeople represent a defaulting location for account information within the order to cash
process. In addition to the definition of the salesperson, related set ups include sales credit
types and territories.
Defaulting Rules
Defaulting Rules are an optional set up within order to cash, but they will provide the greatest
impact for reduced data entry. Default rules control when and where Oracle should obtain
values for sales order entry.
Credit Checking
Credit Checking is initiated through the enter orders implementation and it’s effect is felt
throughout the order cycle. Credit Check rules determine what transactions should be
considered as part of the outstanding credit extension. The application of the credit check rule
on the transaction type then identifies when these rules will come into consideration.
Attachments
Enter Orders
Order Management is the only application that is able to define automatic attachment rules. By
utilizing these rules, implementers are able to reduce the amount of keying done by end uses.
Also, we are able to increase efficiency and accuracy of the placement of standard attachments
via these rules.
Freight Charges and Carriers
Freight Charges and Carriers are utilized during the enter orders process, but their definitions
are held within the Pricing and Shipping modules.
Enter Orders
Summary
Summary
In this module, you should have learned to:

• Enter Sales Order Header information
• Enter Sales Order Line information
• Perform Scheduling activities
• Book Orders
• Copy an Order
• Discuss Drop Shipments and Internal Orders
• Run order import
Enter Orders
Enter Orders
Managing Orders
Chapter 11
Managing Orders
Chapter 11 - Page 1
Managing Orders
Managing Orders
Managing Orders
Chapter 11 - Page 2
Objectives
Objectives
After this module, you should be able to do the

following:
• Use the Order Organizer
• Update Orders and Lines
• Respond to Workflow Notifications
• Apply and Release Order Holds
• Cancel Orders or Order Lines
• Close Orders
• Run the Purge Orders process
Managing Orders
Chapter 11 - Page 3
Agenda
Agenda
• Order Organizer
• Entering Order Updates
• Workflow Notifications
• Entering Holds
• Cancel Orders
• Closing Orders
• Order Purge
Managing Orders
Chapter 11 - Page 4
Order Organizer Overview
• Use the Find Orders Form as a Search tool

• Perform many activities from the Summary Form
• The Navigator Tree allows quick access to groups of
orders
• Folder File technology allows you to customize the
look and feel of your Order Organizer forms
View
Orders
Order
Lines

(N) > Orders, Returns > Order Organizer
The Order Organizer is a series of folder files that can acts as an Orders Workbench.
Use the Order Organizer to Find existing orders, Add new orders, or perform mass updates
across many orders or order lines.
The Order Organizer matches the criteria entered on the Find Orders form against Orders and
Order Lines. The selection criteria can be stored as a saved query then reused when needed
from the Navigator Tree.
The Summary Form is used to display the retrieved Orders and Lines. This makes it possible to
manage several orders at the same time, i.e. perform mass updates.
The Order Organizer is Right Mouse enabled making many of the Folder features easy to
implement and manage.
Managing Orders
Chapter 11 - Page 5
Find Orders
Find Orders
• Use Find Orders to respond to business needs

• Find specific Orders by Customer’s PO
or Invoice Number
• Find groups of orders by Type or Category
• Optionally exclude closed or Cancelled orders
• Use the Find Orders form to find
orders that need to go on hold or
Orders that need to be removed
from hold
Find Orders
(N) > Orders, Returns > Order Organizer > (B) Find
The Find Orders form uses AND logic to build the selection criteria. This enables you to create
complex queries that meet your business needs by combining fields from any of the Find Order
tabs.
Further enhance your search by using date ranges. Date Ranges included:Order Date, Request
Date, Promise Date, Schedule Ship Date, Schedule Arrival Date.
Order Information tab
• Use the Order Category and Order Type to find groups of orders.
• Many times you need to find an order by a specific pieces of information such as a
Customer’s PO, Invoice Number, or Purchase Requisition Number.
• Order Clerks can quickly find all their orders by searching by the Created By field.
• Use the Order Source to find orders generated from another source such as Quotes,
iStore, Service or EDI transactions.
Order Line tab
Managing Orders
Chapter 11 - Page 6
• Find Orders by the Item/Warehouse combination to retrieve all the order lines that may
be affected by a shortage or a quality hold.
• Find orders by Freight Carrier to prepare for a possible carrier strike.
• Use the Waybill number to find the sales order numbers that shipped together.
Hold Information tab
• Enables you to specify holds related criteria and find orders that are on hold.
• Find Hold Sources you may wish to release.
Advanced tab
• Enables you to specify whether the query should include Closed or Cancelled Orders and
Order Lines.
Refer to Guided Demonstration - Find Orders and Order Lines [LAB0272Y]
Managing Orders
Chapter 11 - Page 7
Summary Form
Summary Form
Orders
Order Lines
View
Perform Actions Additional Information
• Apply Holds • Holds

• Cancel • Return Activity
• Copy • Deliveries
• Notifications • Receivables
• Progress Order • Internal Requisitions
• Release Holds • Drop Ships
• Mass Updates • Quantity History
Open the Summary record to access the Sales Order form
Summary Form
(N) > Orders, Returns > Order Organizer > (B) Find > (T) Summary
Orders and Order Lines that meet your Find criteria are returned to the Summary Form.
From the Summary form you can perform many of the same actions that are allowed in the
Enter Orders form. But since you are on a summary form you have the ability to do Mass
actions on groups of orders and lines.
You can:
• Apply and Release Holds
• Cancel Orders and Lines
• Copy orders and Lines.
Notification Action - you can send workflow notifications to your customer, support analyst,
or engineers to keep them informed about special order needs. The Action notification does not
put a hold on the order or order line and does not require a response. If you are the User
responsible for responding to a Workflow Notification you can use the Action - Progress Order
to allow the Sales Order to proceed to it’s next work flow activity.
Managing Orders
Chapter 11 - Page 8
Additional information action - gives you extensive information about your Orders and
Order Lines. This allowing you to respond to Customer or Internal inquiries, or track down
possible problems that might be affecting your order.
Holds tab - provides you the visibility to the Hold Name, the criteria which put the entity on
hold and when the hold was applied. Once the hold has been released the Holds tab displays
when the hold was released and who released it.
Return Activity tab - is populated if you use the Reference option when creating a Return
Order. Return Activity displays the Return order number, quantity returned, credited price
and the Invoice Number which was credited.
Deliveries tab - is populated by the Pick Release and Ship Confirm processes. This tab allows
you to find vital shipping information for tracking down lost shipments.
Internal Requisition tab - gives you visibility to the Purchase Requisition which initiated the
Internal Sales Order.
Drop Ship tab – used to track your supplier shipments. Initially it will display the purchase
requisition number and status. Once the purchase order has been created the drop ship tab’s
requisition number is replaced with the purchase order number and status. The supplier and
buyer are also displayed.
Quantity History tab- used to track quantity decreases. Only booked orders are tracked.
Available information is quantity prior to decrease, date of quantity change and the reason for
the quantity change.
Managing Orders
Chapter 11 - Page 9
Guided Demonstration – Summary Form
(USA)
1. Select Customer
Note: If using the Vision demo database you can use Business World.
2. Click on the Line Information tab.
3. Select an Item Number.
Note: If using the Vision demo database you can use AS18947.
4. Click on the Find button
Note: You are now on the Summary form.
5. Click on the Action button.
6. Double click on View Additional Information.
7. Click on each tab to view the additional information.
8. Close the Additional Information form.
9. Click on the Action button.
Note: These are the actions that can be performed against the highlighted order.
Managing Orders
Navigator Tree Functionality
• Today’s Orders
• Search Results
• Saved Queries
• Personal Folders
• Public Folders

(N) > Orders, Returns > Order Organizer (T) Orders
To access the Navigator Tree click on the Orders tab from the Find Orders form.
Today's Orders is a seeded folder that displays all orders entered today by the current user.
Search Results is a seeded folder that displays all orders or lines matching your query criteria.
The orders and order lines that are displayed in the Summary form are retrieved based on the
search criteria entered on the Find orders form. This criteria can be saved as a User-Defined
Query.
To create a User-Defined Query Right Mouse Click in the Navigator Tree region after records
are displayed in the Summary form. The Save Query form will pop, choose Save Query. The
other choices are Delete and Rename.
User-Defined Queries saved as Public can be used by many users and are stored in seeded
Public Folders files.
User-Defined Queries that are not saved as public are stored in seeded Personal Folder files.
Managing Orders
Guided Demonstration – Navigator Tree
(USA)
Note: First you will perform a Find inorder to create a query statement.
1. Select Customer.
Note: If using the Vision demo database you can use Business World.
3. Select an Item Number.
Note: If using the Vision demo database you can use AS18947.
4. Click on the Find button.
5. Right Mouse Click in the Navigator Tree region (Left hand side of window.
6. The Save Query form will pop, choose Save Query.
7. Enter a unique Query name.
• Do not select Public (make this a personal query).
8. Click OK.
9. Click on the Personal Folder icon to see your saved query.
10. Click on the Today’s Orders icon.
11. Click on the Search Results icon.
12. Click on the Public Folders icon.
Managing Orders
Folder Files
Folder Files
• Personalize your Order Organizer

forms, then save as a new folders
• Folders: Allow Customization
• Save as Private or Public
• Open as Default
• Customize the Presentation
• Open Existing Folder Definitions
• Delete Folder Definitions
Folders Files
(N) > Orders, Returns > (T) Order Organizer
All of the forms which are part of the Order Organizer are Folder Files.
Use the Profile Option: Folders: Allow Customization to control who can manage folders.
To create a folder file have your cursor on any of the Order Organizer forms that have a folder
icon displayed. Use the Folder menu or the Folder Tools icon to save your folder.
When creating folders:
• Folder files are associated with the user name that created it and only made public if
saved as Public.
• Folders that were saved as a Default Folder will only default for the user who created it.
• Use the Folder Tools icon, Folder Menu or Right Mouse click to Customize Folders by
rearranging fields, expanding/contract fields, hiding/showing fields and renaming fields.
• To Open Existing Folders click on the Folder icon
• To Delete a folder file click on the Folder icon and select the folder you want to delete
then use the Folder Menu or the Folder Tools to delete it.
Managing Orders
Guided Demonstration - Folder File
(USA)
(N) > Orders, Returns > Order Organizer (T) Summary
1. Close the Find window
Note: There are three methods to manage folders

− Folder Menu
− Folder Tools icon
− Mouse enabled
2. Using the Folder Menu Create a new folder file for the Summary form
3. Click on (M) Folders > New
4. Name your new folder
5. Save as Default
6. Using your mouse “drag” fields into different positions
7. Using the Folder Tool icon “Shrink” and “Expand” fields
8. Using the Folder Menu change field prompts
Note: To restore the orginial prompt select “Default” from the Change Prompt window.
9. Save your changes: Click on (M) Folder > Save
10. Close Forms to return to navigator window
(N) > Orders, Returns > Order Organizer (B) Find
11. Enter criteria to find a group of Sales Order
(for example: by customer, or order date range)
12. Retrieved records are displayed in your new summary folder
Note: It is VERY important to understand that folder files are associated with a User Name.
Since many users are logged in as Operations/Welcome the last user to exit the Order
Organizer Summary tab will set the default value.
Managing Orders
Practice - Order Organizer
Overview
In this practice you will learn how to customize and use the Order Organizer.
• Create a new Folder File
• Customize the look and feel
• Save a Query
• Use the Navigator Tree
Assumptions
• “XX” is your initials.
• iSupport 11.5.3 has been installed along with other dependencies and patches.
• The URL s for accessing the HTML login page and apps login page.
• Seeded Vision Data
Tasks
1. Login to the database.
2. Choose the responsibility Order Management Super User, Vision Operations (USA).
3. Create a Default Summary form.
• N > Orders, Returns > Order Organizer
4. Shrink the status field.
5. Change the Customer PO prompt.
6. Move the Customer PO Field to the left of the Status field.
7. Save your modified folder.
8. Use the Order Organizer to Find all the Orders for Business World entered last week and
this week.
Managing Orders
9. Save the Query that retreived Business World’s Records.
10. Look at Todays Orders. (Note: You only see the current user’s orders).
11. Look at the Orders that were retrieved from the last execution of the Find form.
12. Look in the Person Folder to see if anyone logged on as “Operations” has saved a personal
query.
Managing Orders
Solution - Order Organizer
Login
• User Name: operations
Choose Responsibility
2. Order Management Super User, Vision Operations (USA) Responsibility is selected.
3. Close the Find window:
4. Click on (M) Folder > New.
5. Name your Summary form: XX-Summary.
6. Check “Open as Default” and “Public”
7. Click (B) OK.
Managing Orders
Shrink the Status Field
8. Put the cursor on the Status field.
9. Click on (I) Folder Tools
10. Put your cursor on each picture o see the “label”.
11. Shrink status one or two times.
12. Close the Folder Tools window.
Change the Customer PO Prompt
13. Scroll to the right to find Customer PO.
14. Click on (M) Folder > Change Prompt.
15. Change the prompt to “PO.”
16. Click on (B) OK.
Move the Customer PO Field
17. Use your mouse to “Drag” the customer po field to the left.
Managing Orders
Save Folder
18. Click on (M) Folder > Save.
19. Close forms
Find all the Orders for Business World
20. (N) > Orders, Returns > Order Organizer
21. Customer: Business World (1608).
22. Order Date: Last Monday to This Friday.
23. Click on (B) Find.
Save the Query
24. Put your cursor in the white, left side of the Order Organizer (T) Summary form.
25. Right Mouse click to pop save menu
Managing Orders
26. Name: XX-Bus.World Current Orders
27. Public: Checked .
28. Click on (B) OK
29. Click on the Public folder icon to see your new saved query.
Managing Orders
Look at Todays Orders
30. Double click on “Today’s Orders”
Look at the Orders
31. Double click on “Search Results”
Look in the Person Folder
32. Double click on “Personal Folders”
33. Click on (I) Close Form.
Managing Orders
Agenda
Agenda
• Order Organizer
• Holds
• Cancel Orders
• Close Orders
• Order Purge
• Summary
Managing Orders
Processing Constraints
Control Updates to Put Constraints (Rules)
Order Entities on Operations
• Header • Create
• Line • Delete
• Sales Credits • Cancel
• Price Adjustments • Update
Define Conditions • Split
Record Sets Validation Templates

• What records • What conditions to
to check look for
Applicable to
Who’s allowed to perform the updates
(N) > Setup > Rules > Security > Processing Constraints
When using Processing Constraints:
• Processing constraints are rules and regulations that control a Sales Order, from its
creation, all the way to its closing.
• Oracle Order Management has seeded Processing Constraints to protect the integrity of
your data. For example you can’t change an order if it is closed. The seeded constraints
cannot be changed.
• You can create additional Processing Constraints to enforce your Business Policies.
• The Processing Constraint Messages should be designed to clearly state the violation.
This will assist in resolving the issue. Order Management displays validations in the
Error Message window.
• Operations that can fail validation are Create, Delete, Cancel, Update and Split line.
• Processing constraints use Record Sets and Validation Templates to build Conditions that
cannot be violated.
Managing Orders
• Records Sets identify which records to look at. A Record set is a set of records that are
bound by common attributes such as Ship Set. Record Sets are the records that will be
validated for a given condition defined by it’s Validation Template. Record sets use a
match on column. Example: An ATO Configuration matches on the Header ID and ATO
Line columns. Ship Sets match on Header ID and the Ship Set Number.
• Validation Templates identify what conditions you are looking for. Example: Is the order
booked? Validations can be based on the value of a column, the Status or Result of a
Workflow Activity, or a PL/SQL package to return a value to be used.
• You must run Create Validation Packages to make new and modified Record Sets and
Validation Templates visible in the Processing Constraints form.
• Use the Applicable to tab on the Processing Constraints to control who can make
changes.
Managing Orders
Update Orders and Order Lines
• Update from Sales Order form
• Updates must Pass your

• Updating an Order Header will

have no affect on the Order Lines.
• Order Sets are Respected when

making Updates

(N) > Orders, Returns > Sales Order
• Use the Sales Order form to make necessary changes to an Order or Order Line.
• You can change individual fields or perform an Action such as delete, cancel or hold.
• All actions and updates performed against an Order must pass your processing
constraints. If the validation fails a message will inform you why you are not allowed to
complete that operation.
• Making changes to an Order Header will have no affect on the Order Lines. This is
because the Defaulting Rules are only executed once, when the line is first created. So if
you change something on the Order Header that has already been defaulted to the lines
you will need to access the line items and make your change there as well. The Mass
change menu will expedite this process for you.
• When changing Order lines any Order Sets that exist will be respected. For example if
you change the promise date on one line of a Ship Set the system will dynamically
change the other lines within that set to the same value.
Managing Orders
• Sets that are protected are Ship Sets, Arrival Sets, Fulfillment Sets, and ATO
configurations.
Managing Orders
Guided Demonstration – Update Order
(USA)
Note: You can use Business World.
3. Select an Internal Item.
Note: You can use AS18947.
5. Click on the Open order button of a “Booked” order.
6. Change 1 or more Order Header fields.
7. Click on (T) Line Items.
8. Change 1 or more Order Line fields.
Note: Processing Constraints may prevent update to the Order you selected.
Managing Orders
Practice - Update Order
Overview
In this practice you will learn how to make changes to a Sales Orders.
• Find existing Orders
• Change Order Header data
• Change Line data
Assumptions
Tasks
3. Find all the Booked orders for Business World entered in the last two weeks.
4. Find All.
5. Change or add a Sales Channel.
6. Change a line’s ship to address.
• (T) Line Items, (T) Addresses
Managing Orders
Solution - Update Order
Login
Find All
3. N > Orders, Returns > Order Organizer.
4. Enter Customer Business World (1608)
5. Enter Status: Booked
6. Enter Order Date from: Last week to End of this week
8. Use the Customer’s PO number (XX) to select a unique order number.
9. Click on (B) Open Order.
Managing Orders
Change or add a Sales Channel
10. (T) Other
11. Click on Sales Channel LOV.
12. Save .
13. Processing Constraints may prevent update.
Change a line’s ship to address
14. (T) Line Items, (T) Addresses
15. Scroll to the Ship to (location).
16. Use the LOV to select a new ship to location.
17. Save .
Managing Orders
18. Processing Constraints may prevent update.
19. Close form .
Managing Orders
Mass Updates
Mass Updates
•Ctrl key - Click to Select desired Orders or Lines
•Mass Updates must Pass your Processing Constraints
Mass Change Menu Action Menu

• Main • Copy
• Pricing • Hold
• Shipping • Cancel
• Addresses • Split
• Returns
• Services
Mass Updates
(N) > Orders, Returns > Sales Order > (T) Mass Change
Select lines for update by holding the Control key while clicking on the desired record.
To select all displayed records use the Edit menu Select all.
Use the Tools - Mass Change window to update fields on the Order Headers or Order Lines.
Mass Change will pop a note letting you know if the updates were completed successfully. If
it wasn’t the processing constraint will display the Process Message window explaining why
the update did not occur.
Use the Action Menu to perform mass copies, holds and cancels.
Managing Orders
Guided Demonstration – Mass Change
(USA)
2. Note: You can use Business World.
4. Highlight any two orders. Hold the Ctrl key and click on order.
5. Click on the Action button
6. Optionally, choose to Apply Hold, Book order, Cancel, copy, price or calculate tax.
7. Open any order that has at least two line items.
8. Hold the Ctrl key and click on the lines you want to change.
9. Click on (M) Tools > Mass Change.
10. Make change.
Note: Processing Constraints may prevent update to the Order Lines you selected.
Managing Orders
Practice - Mass Change
Overview
In this practice you will learn how to make changes to multiple orders or lines at one time.
• Find existing Orders
• Perform a Mass Copy
• Perform a Mass Line Change
Assumptions
• “XX” represents your initials.
Tasks
3. Find all the orders for Business World entered in the last two weeks.
4. Copy 2 Orders.
5. Query your two new Sales Orders, add a Customer PO # and Book.
6. Create a new sales Order with 2 line Items and Book it.
7. Update Shipping Priority
8. Look at the results of your change.
Managing Orders
Solution - Mass Change
Login
Find All
3. N > Orders, Returns > Order Organizer.
4. Enter Customer Business World
5. Enter Order Date from: Last week to End of this week
Copy 2 Orders
7. Hold the Ctrl key and Click on the Orders you want to copy.
8. Click on (B) Action > Copy.
9. Click on (B) OK.
Managing Orders
10. Click on (T) Pricing Option.
11. Select Option: Re-Price as of this date.
Managing Orders
13. Click on (B) Continue to have orders created.
14. Write your two new Sales Order Numbers.
Managing Orders
• Sales Order # 6: __________________________________________________
• Sales Order # 7: __________________________________________________
15. Close Forms .
Query Sales Orders
16. N > Orders, Returns > Sales Order
17. F11.
− Sales Order # 6.
− Ctrl F11
− XX-006
18. Book Order
19. F11
− Sales Order # 7.
− Ctrl F11
− XX-007.
20. Book Order.
Create a new sales Order
21. From the Order Organizer, click on (B) New Order
22. Customer: Business World (1608)
23. XX-008.
26. Line 1.1, Item: AS54888 Qty: 5
27. Line 2.1, Item: AS54999 Qty: 7
Managing Orders
28. Click on (B) Book.
29. Write your new order number:
• Sales Order # 8 __________________________________________
Update Shipping Priority
30. Click on (T) Line Items
31. Hold the Ctrl key and Click on each line.
32. Click on (M) Tools > Mass Change
33. Click on (T) Shipping
34. Select a Shipping Prioity
35. Click on (B) OK
Managing Orders
Look at the Results
37. Scroll to Shipment Priority.
38. Close form .
Managing Orders
Agenda
Agenda
• Order Organizer
• Holds
• Cancel Orders
• Closing Orders
• Order Purge
Managing Orders
Workflow Notification Overview
Workflow Notification Overview
• Stops Order or Order Line’s

processing until Approved
• Employees are responsible for

responding to an Approval
action. Workflow Process
• Link a role to OM: Notification

Approver
• Use the Workflow Monitor to

view and respond to Approval
Notifications Stop Orders or Lines
Workflow Notifications Overview

With Oracle Order Management, you can regulate order activity by defining as many manual
Approvals as you wish and positioning them anywhere in your order processes.
The Notification Activity is a unit of work that requires human intervention. Notifications can
stop an Order or Order Line.
Notifications can be sent to any one who has been set up with a User Name. This can include
employees as well as customers.
A seeded profile option OM: Notification Approver can be set at any level (site, application,
responsibility or user). It points to a Value set that is based off WF_ROLES. By setting it at a
responsibility level you could set up such that you have different roles per operating Unit that
receive OM notifications. When the Order Header or Line is created the workflow Notification
Approver attribute is set to the value in OM: Notification Approver profile option.
You can access the Workflow Monitor from the Sales Order forms. The workflow monitor is a
Java-based tool accessible from a Web browser that lets you graphically monitor a workflow’s
progress as well as view its transaction history.
Approve Order or Order Line to enable it to resume its Workflow activities.
Managing Orders
Respond to Notification
Notification sent: Can order continue in flow?
Rejected Approved
Order Remains Stopped Order Continues Processing
(N) > WF Notification > (I) Flashlight > Find Notifications
Notifications either alert individuals to a situation or ask individuals to perform an action, for
example, an approval.
When accessing your notifications, you can:
• Specify search criteria to be used to find the Notifications you want to work on, for
example, status, type, subject, sent, due, priority.
• View the details of each notification.
• If requested by the notification, perform an action, for example, reply to the notification
or forward the notification to another individual.
• Rejecting an Approval Notification will cause the Order or Order Line to remain held at
the current activity.
• If the Order or Order Line is never going to be approved you should Cancel it.
• Approving your Notification allows the Order or Order Line to continue its workflow
processing.
Managing Orders
Guided Demonstration – Workflow Notifications
(USA)
(N) > WF Notifications
1. Click on a Subject link to see details of the notification.
2. Click on the Return to Workline.
3. Click on a Select Checkbox.
• Scroll to the bottom of the form.
5. Click on the Reassign button.
6. Select a user.
7. Click on the Transfer ownership option.
8. Enter comments.
9. Click (B) OK to activate the transfer.
(N) > Orders, Returns > Sales Order
11. Enter required fields.
12. Save the Order to receive a Sales Order Number.
13. Click (B) Action.
14. Select Notification.
15. Send to Stock, Ms. Pat
16. Enter a message.
17. Click on Send button.
• Notice that you are given a confirmation and notification number.
19. (N) > WF Notifications.
20. Click on Subject line.
Notice the message: This notification does not require a response. It will not hold the order.
Managing Orders
Agenda
Agenda
• Order Organizer
• Holds
• Cancel Orders
• Closing Orders
• Order Purge
Managing Orders
Automatic System Holds
Credit Check Hold:

• Credit Check Rules
• Order Transaction Type
• Customer Profile Classes
• Order Payment Terms
• Manual Release
• Automatic Release

Credit Check Hold:
• Credit checking will only occur if the Order Type has been set up to check credit, the
Customer’s profile class has Credit Check selected and the Order’s Payment Type has
Credit Check selected. If any of these are not true Credit Checking will not occur for
that Sales Order.
• Credit Holds are automatically applied at the Order level if the limits have been violated.
• Create your Credit Check Rules to establish the total dollar exposure that will be
compared to the customer’s limits.
• Use the Order Transaction Type to dictate when to perform Credit checking and which
rule to execute. Your choices for when to check are at Booking and/or at Shipping.
• The Credit Checking process looks at the Customer’s Profile Class to determine whether
to perform credit checking and if credit checking is to occur what credit limits to use.
Optionally, credit limits can be set for each Customer’s Bill to address. Limits are per
currency.
• Create Payment Terms and select Credit Check. An example of a Payment term that
would NOT have credit Check selected would be CASH.
Managing Orders
• If a Credit Check hold is manually removed prior to Pick Release, the Release process
will NOT put the order back on hold.
• Credit Check holds can be automatically removed by the system at Pick Release under
the following circumstances; the customer’s AR balance has been reduced or the
customer’s limits have been raised.
• Credit Check holds can be applied or removed automatically by the Enter Orders form if
any of the following fields are changed on a booked order; price list, order quantity,
payment terms or schedule ship date.
Managing Orders
Hold Names
Hold Names
• User Defined
• Group by Type
• Link to Workflow Activity
• Authorization by Responsibility
Hold Names
(N) > Setup > Orders > Holds
Create as many Hold Names as your business processes dictate. Create Hold Types to
logically group your Holds.
Hold Names define characteristics about the Hold that are validated when the Hold Name is
Applied or Released from an Order or Order Line.
One of the validations that is controlled by the Hold name is the Workflow Activity logic. You
can create Holds that will not hold an order or order line until it has reached a specific
workflow activity. The other validation is the Authorization of Responsibility. You can have
different Responsibilities authorized to Apply and Release Holds.
Select the checkbox Hold Included Items to be sure that included items are held when holding
Orders for Model items.
Managing Orders
Guided Demonstration – Create Hold Name
(USA)
(N) > Setup > Holds
1. Enter a hold name.
2. Enter a hold description.
3. Select a Type from the LOV.
4. Do not line to a Workflow. Leave Workflow Item and Workflow Activity blank.
5. Click on “Hold Included items”
6. Leave date fields blank
7. Enter authorized responsibility for both Apply and Remove: Order Management Super User,
Vision Operations (USA).
8. Save your work.
Managing Orders
Practice - Create Hold Name
Overview
In this practice you will learn how to create a Hold Name.
Assumptions
• “XX” is your initials.
Tasks
3. Create a Hold Name.
Managing Orders
Solution - Create Hold Name
Login
Create a Hold Name
3. (N) > Setups > Holds.
4. Enter a “XX” hold name.
5. Enter a description.
6. Select type: Order Administration Hold.
7. Select “Hold Included Items” .
8. Select Apply and Remove authorized responsibility:
• Order Management Super User, Vision Operations (USA).
9. Save .
Managing Orders
10. Close form .
Managing Orders
Apply Holds
Apply Holds
Hold Existing Orders and Order Lines

• Only Authorized Responsibilities
• Use the Order Organizer’s Find form to
specify Selection Criteria
• Perform Mass Holds
• Specify a Hold Until Date
Hold new Orders/Lines

• Create a Hold Source to hold new orders
• Specify up to Two Selection Criteria
(Warehouse, Item, Customer, Site)
Apply Hold
Hold Existing Orders or Lines
(N) > Orders, Returns > Order Organizer > Find > Order Organize (T) Summary > (B)
Actions > (M) Apply Holds > (B) Apply Holds
• You have the ability to hold an entire Order, which would prohibit any further activity
against any of the related lines. Or you can hold individual Order Lines which would
allowed other lines on the same order to progress independently.
• Manually apply a Hold using the Action > Apply Hold menu from the Order Organizer,
Order Header or Order Line.
• Applying a Hold to an Order or Order Line stops the workflow processing at whatever
point it currently resides. Consequently, special attention needs to be paid to existing
orders to be sure you’re not holding an order that has already been shipped but not yet
invoiced.
• When applying a Hold, the Hold Names will be restricted by your Responsibility.
Managing Orders
• To Apply a Hold to existing Orders or Order lines use the Order Organizer’s Find form to
enter your Selection Criteria. Combine information from any of the find tabs to assure
that you are selecting the necessary orders.
• Perform Mass Holds by highlighting multiple Orders or Lines prior to accessing the
Action > Apply Hold menu.
• Specify a Hold Until Date to apply a temporary hold. When the Hold Until date has
arrived the Close Orders process will release the Order or Order Line.
Hold New Orders or Lines
(N) > Orders, Returns > Order Organizer > (M) Tools > Create Hold Sources > (B) Apply
Hold
• Create a Hold Source to hold new Orders or Order Lines.
• Specify the Criteria which will identify Orders or Lines which are to go on hold. Base
your criteria on Item, Warehouse, Customer name, Customer Bill to or Ship to.
• Your Hold Criteria can be a combination of two choices such as Item and Warehouse, or
Customer and Ship to site.
• Optionally Hold Future Orders/Lines.
• Optionally Hold Existing Orders/Lines.
• Optionally enter a Hold Until date.
• Use the OM: Schedule Orders on Hold profile option to allow the Workflow activity
Schedule – Line to be executed even if the line is on hold.
Managing Orders
Guided Demonstration – Apply Holds
(USA)
1. Enter fields to find an order to hold.
3. Put your cursor on the order you’re going to hold.
4. Click on the Action button and select Apply Hold menu.
5. Select a hold name.
6. Enter comments.
7. Click (B) Apply Hold.
You have just applied an Order level hold.
8. View the hold from the Action > Additional Order Information menu.
9. Close Additional Order Information form.
10. Open one of the Orders from the Summary form.
11. Click on the Line Items tab.
12. Click on the Action button and select Apply Hold
14. Enter comments.
You have just applied a Line level hold.
16. View the hold from the Action > Additional Order Information menu.
17. Close forms to return to the navigator window
18. Click on the Tools Menu > Create Hold Source (T) Criteria
Managing Orders
20. Select Hold Criteria one and Hold Criteria two.
You could use Item: AS72111 with Warehouse M1 Seattle Manufacturing.
21. Click on the Hold Name tab.
22. Check Hold Future Orders/Lines.
23. Uncheck Hold Existing Orders/Lines.
You have just created a hold source that will hold all new orders that meet the criteria you
entered.
25. Test the hold by entering an order using the criteria from step 23.
26. Click (B) New Orders.
27. Enter a customer name and all required information.
29. Enter an Item Number and quantity.
30. Save your work.
If you entered an order using the exact same criteria as in the hold source you will receive a
message that your order has been put on hold.
Managing Orders
Practice - Apply Holds
Overview
In this practice you will learn how to apply holds and create a hold source.
• Find a sales Order
• Apply an Order level hold
• View the results
• Apply a Line level hold
• Create a Hold Source
• Test the Hold Source
Assumptions
• XX represents your initials.
Tasks
3. Use your PO Number to find an order to put on hold.
4. Write the Order number that you have put on hold.
5. View Hold information.
6. Put one of the Order lines on Hold using the same hold name.
Managing Orders
7. View the line hold.
8. Create a Hold Source that will only hold future orders. The hold criteria are order lines for
item AS54999 that are shipping from the Seattle warehouse.
9. Test the hold source by entering a new order line for AS54999.
10. View Hold information.
Managing Orders
Solution - Apply Holds
Login
Find an Order
3. Enter XX% then tab out of the field to display the list of values.
4. Click on the Order you want to hold and OK.
Managing Orders
6. Click (B) Action > Apply Hold.
Managing Orders
7. Select your XX hold from the LOV.
8. Enter a “Hold Until” date.
9. Enter comments.
10. Click on (B) Apply Holds.
Managing Orders
Write your Order on Hold
11. Write your Order on Hold: Sales order Number: ___________________.
View Hold Information
12. Click on (B) Action > Additional Order Information (T) Holds.
Managing Orders
13. Close the Additional Order Information form.
Put Order Lines on Hold
16. Click on (B) Actions > Apply Hold.
17. Select your XX hold from LOV.
18. Enter comments.
19. Click on (B) Appy Hold.
Managing Orders
View the Line Hold
20. Click on (B) Action > Additional Line Information.
21. Close the Additional Line Information form.
22. Close form .
Create a Hold Source
23. Click on (M) Tools > Create Hold Source.
24. Select your XX hold.
25. Enter Item AS54999 and Warehouse M1-Seattle Manufacturing as the hold criteria.
Managing Orders
26. Click on (T) Hold Name.
27. Enter comments.
28. Check Hold Future Orders/Lines.
29. Uncheck Hold Existing Orders/Lines.
30. Click on (B) Apply Holds.
Managing Orders
Test the Hold Source
31. From the Order Organizer click on (B) New Order.
32. Customer: Business World (1608)
33. XX-009.
Managing Orders
36. Enter item: AS54999.
37. Enter Qty: 1.
38. Save
Managing Orders
39. Click on (B) Actions > Additional Line Information.
40. Write your Sales Order.
• Sales Order # 9: _____________________________________________.
Managing Orders
41. Close forms .
Managing Orders
Release Holds
Release Holds
• Only Authorized Responsibility may

Release Holds
• A Reason is required to Release
Order or Order Lines
• Optionally perform Mass Releases
across many orders
• Release a Hold Source to prevent
future orders from being held
Release Holds
Release Orders
(N) > Orders, Returns > Order Organizer > (T) Holds Information > (B) Find > (T)
• Only authorized responsibilities will be allowed to release a Hold or Hold Source.
• Choose from a user defined list of values to select the appropriate reason for releasing the
hold.
• Use the Action – Release Hold menu.
• Optionally enter comments to document your transaction.
• Highlight multiple Orders or Order Lines prior to accessing the Action – Release Hold
menu to perform a Mass Release.
Release Hold Source
(N) > Orders, Returns > Order Organizer > (T) Holds Information > (B) Hold Source
• Enter the Hold name which was used to create the Hold Source and click on the Hold
Source button.
Managing Orders
• Releasing a Hold Source will release all orders or order lines that went on an automatic
hold and prevent new orders from being held.
Managing Orders
Guided Demonstration – Release Holds
(USA)
(N) > Orders, Returns > Order Organizer > (T) Hold Information
1. Enter a Hold name.
2. Click on the Find button, to find all the sales Order that have been held with that hold name.
3. Click on the Order number you want to release.
4. Click on the Action menu and select Release Hold.
Did you receive this message, at the bottom of the form?
FRM-40350: Query caused no records to be retrieved.
The order you selected either is no longer on this hold or the hold has been applied at the
line level and you will need to click on the Lines tab before attemping to release it.
If the Release form opened enter a Release reason and comment.
9. Click on the Release button.
10. To see the history of the hold you just release click on Actions and select Additional Order
Information.
11. Scroll to the right to see the release history.
12. Close the Additioinal Order Information window.
13. Click on the Flashlight icon to load the Order Organizer form.
14. Click on the Hold Information tab.
15. Enter the Hold name that was used to create a Hold Source.
16. Click on the Hold Source button.
17. The entry that shows the hold criteria is the Hold Source record.
18. Put you cusor on the Hold Source record.
19. Enter a release reason.
20. Enter comments.
Managing Orders
21. Click on the Release button.
22. Test to be sure that the hold has been release.
23. Click on the New Order button from the Order Organizer.
24. Enter a customer.
25. Enter the required Order header fields.
27. Enter the item number that was referenced on the Hold Source.
You may have used AS72111.
30. Save your work.
The line should not have gone on hold. This validate that the hold source has been released.
Managing Orders
Practice - Release Holds
Overview
In this practice you will learn how to remove holds and hold source.
• Find Orders that are on hold
• Remove Order Hold
• Remove Line Hold
• Remove a Hold Source
• Test the removal of hold source
Assumptions
• XX represents your initials.
Tasks
3. Find your Orders that are on hold and remove the holds.
• N > Orders, Returns > Order Organizer (T) Holds Information
4. Find the remaining holds that need to be removed and release them.
5. Clear the Order Organizer.
6. View the Hold history.
7. Enter a new order line for AS54999, to see if the Order Source was released.
Managing Orders
Solution - Release Holds
Login
Find Orders
(N) > Orders, Returns > Order Organizer (T) Holds Information
3. Select your XX hold name from LOV.
Managing Orders
5. Click on (B) Yes.
6. Put your cursor on the first Order you put on hold.
7. Click on (B) Action > Release Hold.
8. Enter a reason code and comments.
9. Click on (B) Release.
Managing Orders
10. Put your cursor on the Sales Order #9 (the Order that went on an automatic hold because of
the Hold Source).
• Look at the bottom of the screen to see the following message:
Managing Orders
Question: Why were you able to remove the hold for the other order but when you try
to do the same procedure on this order you receive the message that no records were
found?
Answer: Because this is a “Line Level” hold and you are attempting to remove it at
the Order Level.
12. Click on (T) Lines.
13. Put your cursor on the Order Line that was automatically put on hold.
15. Enter a Release Reason and Comments.
Managing Orders
17. Close forms .
• Note: You have removed the Order Level Hold and 1 line level hold.
• You should still have a line level hold that you manually put on that needs to be released
(remember the customer was going to get back to you later and let you know if they still
wanted that line). And you have the Hold Source that needs to be released.
Find the Remaining Holds
18. (N) > Orders, Returns > Order Organizer (T) Hold Information
19. Select your XX hold name.
20. Click on (B) Hold Sources .
21. Put your cursor on the hold line that was requested by your customer.
• (Hint: the value field will be an Order number)
22. Enter a Reason code.
23. Enter Comments.
Managing Orders
25. Put your cursor on the “hold source” line.
26. Enter a Reason.
27. Enter comments.
Managing Orders
Clear the Order Organizer
29. Click on the clear icon, (you need to clear the XX hold name).
View the Hold History
30. Enter the Order number or customer PO number to find the order that you released.
32. Click on (B) Action > Additional Order Information (T) Holds.
33. Close the Additional Orde Information form.
Enter a new order line
34. Click on the (B) New Order
35. Business World (1608)
36. XX-010.
39. Item: AS54999.
40. Quantity: 1.
41. Save .
Managing Orders
Note: Your line should NOT have gone on hold.
Managing Orders
Agenda
Agenda
• Order Organizer
• Holds
• Cancel Orders
• Closing Orders
• Order Purge
Managing Orders
Cancel Orders
Cancel Orders
Customers or Internal Managers may

request a cancellation
Processing Constraints assure that

only eligible orders can be cancelled.
Cancel Order, Lines, or Line Splits
Cancel Orders
(N) > Orders, Returns > Orders Organizer >(B) Find > (T) Summary > (B) Actions > Cancel
Order/Line > Cancel Orders > (B) OK
• Customers request that an Order or Order Line be cancelled.
• Cancellations must pass your Processing Constraints.
• Order Management provides the features you need to cancel sales orders. You can cancel
entire orders, individual lines, or split lines. Order can be canceled manually or via EDI
and Order Import.
• A reason for the cancellation is required.
• Cancelled orders are not deleted from your system.
• If the entire order is cancelled the Order Status is changed to Cancelled.
• If a line or split line is cancelled the Line status is changed to Cancelled and the Qty
Cancelled is populated.
• Cancellations cannot be reversed.
Managing Orders
• If an order or order line is cancelled by mistake use the Copy action to create a new order
by copying the cancelled order or line.
Managing Orders
Guided Demonstration – Cancel Order
(USA)
1. Enter fields to find a booked order to Cancel.
3. Put your cursor on the order you’re going to Cancel.
4. Click on the Action button and select Cancel.
Note: Cancel Remaining Lines allows you to cancel lines against an order that has been
partially filled. This eliminates the need to cancel each line individually.
6. Leave Cancel Remaining Lines unchecked.
7. Select a Reason code.
8. Enter comments.
9. Click on the OK button to execute the Cancel.
• You must requery the cancelled order to see that the status has changed.
(N) > Orders, Returns > Sales Order.
12. Use the quick key F11 to enter query mode.
13. Enter the Sales Order number you just cancelled.
14. Hold the Ctrl key and F11 key to execute query.
15. Notice that the status had changed to Cancelled.
16. To cancel a line Click on the Flashlight icon to access the Order Organizer Find form.
17. Enter fields to find booked orders.
19. Open an Order.
Managing Orders
21. Put your cursor on the line you want to cancel.
22. Click on the Action button and choose Cancel menu.
23. Enter a reason code and comments.
24. Click on the OK button.
• Notice that the quantity is zero.
26. Scroll to see the line Status of Cancelled.
Managing Orders
Practice - Cancel Order
Overview
In this practice you will learn how cancel at the Order level and Line level.
• Query Sales Order to Cancel
• Cancel Line
• View cancel information
• Find Sales Order to cancel
• Cancel Order
• View cancel information
Assumptions
• “XX” represents your initials.
Tasks
2. Choose the responsibility Order Management Super User, Vision Operations (USA)
3. Query Customer’s PO: XX-002 and cancel line 2.1.
4. View the results of your cancel action.
5. Find all of Business World’s Booked orders for the last two weeks. Select an order with one
of your PO numbers and cancel it
6. Find the Sales Order you just cancelled.
Managing Orders
Solution -Cancel Order
Login
Query Customer
3. Enter Query
• F11
− Ctrl F11
4. Put your cursor on line 2.1 (AS18947).
5. Click on (B) Action > Cancel

− Enter a Reason
− Enter Comments
6. Click on (B) OK.
Managing Orders
View Results
7. Notice the line quantity is 0 and the status is Cancelled.
8. Close forms .
Find All

− Business World (1608)
− Booked
− Order Date: Beginning of last week to End of this week.
Managing Orders
11. Put your cursor on the Order you want to cancel.
12. Click on (B) Action > Cancel.
13. Leave Cancel Remaining Lines unchecked .

− Enter a reason.
− Enter comments.
Managing Orders
.
15. Close Forms .
Find Sales Order

− Customer: Business World (1608).
− Status: Cancelled.
− Order Date: Beginning of last week to End of this week.
18. Since the order was cancelled at the Order level the status of the Order has been changed to
Cancelled.
19. Close forms .
Managing Orders
Agenda
Agenda
• Order Organizer
• Holds
• Cancel Orders
• Closing Orders
• Order Purge
Managing Orders
Close Orders and Lines
• Enhances the performance

• Prohibits Order Updates
• Holds will prevent Closing
• Closing is a Workflow Activities
• Only Eligible Orders and Lines will
be closed
• Closing a Line is an independent
action
• Closing an Order is dependent on
Lines being closed

Since many of the Order Management programs, windows, queries, and reports only retrieve
open orders, closing Sales Order Lines and Orders will enhance their performance.
Seeded Processing Constraints prohibit updates to closed orders/lines.
Holds prevent closing an Order or Order Line. Remove holds to allow closing.
Both the Order Closing and Line closing are Workflow Activities that are a part of all seeded
Order Management Workflows.
Lines
Only Order Lines which are eligible will close.
An order line is eligible to close when it has completed all of the line-level activities within the
workflow.
Cancelled Lines are closed.
Orders
Orders are eligible to close when all lines associated with the Order are closed.
Orders are only closed at the end of the month.
Managing Orders
Agenda
Agenda
• Order Organizer
• Holds
• Cancel Orders
• Closing Orders
• Order Purge
Managing Orders
Order Purge
Order Purge
Purge
Parameters
• Build Purge Set
• Purge by Set
• View Results
Order repository
Purged Purged Purged Purged

Sales Order Sales Order Sales Order Sales Order
1 2 3 4
• Only Closed Orders can be Purged

• Orders Cannot be linked to any open activity
Order Purge
(N) > Orders, Returns > Order Purge > Order Purge Selection
• Build a Purge Set to define which orders are to be purged.
• The Purge Parameters give you the necessary options to enable you to purge a very
specific set of orders. Combine any of the following parameters; Range of Orders, Order
Type, Order Category, Customer, Order Date Range, Creation Date Range.
• Submit the Purge Set for processing. When the concurrent request is completed your
Purge Set will be visible in the Orders Purge form.
(N) > Orders, Returns > Order Purge > Order Purge
• It is suggested that you backup, archive or warehouse your orders before purging.
• Only Closed orders that have no open activity associated with them will be purged. The
open activities include; Work Orders, Invoices, Returns, Requisitions.
• The Orders Purge form shows you the associated orders in the Orders Details tab.
• There are two important checkboxes in the Purge form, Purge Eligible and Purged.
• Use the Purge Criteria tab to see the selection criteria.
Managing Orders
• Submit your Purge Set to execute the Purge Order process.
• The Purge Orders form will be updated with the results of the purge. It will either select
the Purged checkbox or list error messages that prohibited the purge.
Managing Orders
Guided Demonstration – Purge Order
(USA)
(N) > Orders, Returns > Order Purge > Order Purge Selection
1. Create a Purge Set that will be used to run the Purge Process. The first step in the Purge
process compliles a list of orders, which are eligible to purge, based on the criteria that is
entered in the Purge Set.
2. Enter Purge Name
3. Enter a Purge Description (What is the purpose of this purge)

− Optionally enter a range of Order Numbers to purge.
− Optionally enter an Order Type.
− Optionally, enter a Customer Name.
− Optionally enter a range of Order Dates
− Optionally enter a range of Creatation Dates.
9. OK the parameters window.
10. Submit purge order for concurrent processing.
11. View concurrent requests to be sure that the process completed successfully.
(N) > Order Purge > Order Purge
13. Query your Set Name from step two.
14. The Order Detail tab displays the orders, which met the Purge criteria
15. The checkbox “Eligible” or “Purged” shows the current status of each eligible order.
16. Click on the Submit Purge to start the purge process.
17. Click on the Delete Purge set if you want to abort and delete the Purge Set.
The checkbox Set Purged indicates when all the records within the set have been purged.
After the Submitted purge has completed normally look at the Order purge to see which
records were purged.
Any orders that were eligible but did not get purged will have an error message displayed on
the purge record.
Managing Orders
Summary
Summary

• Use the Order Organizer
• Update Orders and Lines
• Respond to Workflow Notifications
• Apply and Release Order Holds
• Cancel Orders or Order Lines
• Understand the Close process
• Run the Purge Orders process
Managing Orders
Managing Orders
Basic Pricing
Chapter 12
Basic Pricing
Chapter 12 - Page 1
Basic Pricing
Basic Pricing
Basic Pricing
Chapter 12 - Page 2
Objectives
Objectives
After completing this module, you should be able

to do the following:
• Understand the Pricing Engine
• Create Price Lists
• Maintain Price Lists
• Create Agreements
• Create Formulas
• Understand How to Use Qualifiers
• Create Modifiers
Basic Pricing
Chapter 12 - Page 3
Agenda
Agenda
• Understanding the Pricing Engine

• Entering Price Lists
• Using Price List Maintenance
• Entering Agreements
• Entering Formulas
• Using Qualifiers
• Using Modifiers
Basic Pricing
Chapter 12 - Page 4
Pricing Engine Overview
What is being Priced?
Who is asking for the Price?

Qualifiers
How should the Price be Adjusted?

Modifiers

The Pricing Engine answers three questions:
• What is being priced
• Who is asking for the Price
• How is the base unit price to be adjusted.
Once it has all this information it selects the Price List Price and then applies any qualified
modifiers in order to calculate the final Selling Price.
WHAT?
Based on the seeded Item Context and any user defined Pricing attributes that have been setup:
• The Item Context supported in Basic Pricing is the Item Number, Item Category, All
Items.
• Using Pricing Attributes gives you the ability to factor in some characteristic about the
item which would affect the selling price. For example: height and length. You could
set up pricing attributes to represent height and length. When entering an Order the
system will prompt for the height and length the customer is ordering and then the pricing
engine will use that information to calculate the unit selling price.
Basic Pricing
Chapter 12 - Page 5
WHO?
The Pricing Engine uses Qualifiers passed from the Sales Order to determine WHO is asking
for the Price. Then it uses the passed qualifiers to select which modifiers will be used to
calculate the final selling price.
Price List qualifiers are not enabled with basic pricing so the validation is based on the Item
value/unit of measure.
You can associate Qualifiers with Modifier Lists and Modifier Lines. These qualifiers act like
rules protecting your Modifiers from being used incorrectly. Oracle seeds four qualifier
contexts which you can use immediately. They are:
• Customer Context: Name, Bill-to, Ship-to, Customer Class, Sales Channel.
• Order Context: Order/Line Type, Customer PO, Agreement, Ship Date.
• Terms Context: Payment terms, Freight Terms.
• Modifier List Context: Price List.
• Volume Context: Order Amount, Line Volume
Note: These are not the only fields available with each context.
HOW?
Once the Pricing Engine has selected a unit price it determines HOW to adjust it by selecting
qualified Modifiers. Modifiers can be in the form of a Discount, Surcharge or Freight and
Special Handling.
• Discounts and Surcharges can be applied as a Percent, Amount, New Price or Lump sum
to the unit price.
• Freight and Special Charges are not used in the calculation of the Unit Price. These
values are stored separately and added to the Line and Order totals.
Basic Pricing
Chapter 12 - Page 6
Pricing Engine Pyramid

INPUT All Customers, All Items OUTPUT
Base Price: Final

What
Agreements Selling Price
Item Number Price Lists
Pricing Attributes • Formulas
How to Adjust Base Price
Who
• Modifiers (Adjust - & +)
Qualifiers
• Percent
• Amount
• New Price
• Lump sum
• Price Breaks
• Formulas
One Customer One Item
Pricing Request Structure

The Pricing Engine Pyramid demonstrates the flexibility you have in setting up your prices. At
one extreme you could have 1 price per item per customer. And at the other extreme you could
have 1 price for all items for all customers.
The Input information comes from the Order which is being priced. It is made up of Item
Number, pricing attributes and qualifiers. The Input information is used to generate the Pricing
Request Structure that must be filled by the Pricing Engine.
The Base Price always comes off either a regular Price List or an Agreement Price List. The
value that is used could be the result of a price break, or a formula. The Pricing engine selects
qualified modifiers and resolves incompatibilities. The Pricing engine applies modifiers to base
price to calculate the final selling price. This is returned as the Output to the calling
application.
Basic Pricing
Chapter 12 - Page 7
Agenda
Agenda

• Using Modifiers
Basic Pricing
Chapter 12 - Page 8
Price List Creation
Price List Creation
Three ways to create a Price List
• Price List Setup User Interface
• Add Items from Inventory

Items Data base
• Copy Existing Price Lists
Basic Pricing
Chapter 12 - Page 9
Price List Header
Price List Header
Name: Fiscal Year 2002
Currency
Round to: -2
Secondary Price List
Price List Header

(N) Pricing > Price Lists > Price List Setup
The Pricing Engine requires that all Items, Services, Models, Option Classes and Options be on
a price list.
You will need to set up a price list for each Currency you use. The Pricing Engine will only
consider price lists that share the same currency as the Pricing Request. Therefore a sales order
placed in Yen will have to utilize a Yen based price list.
There is a Round to field in Price List form. This field controls the rounding factor. Entering a
positive number affects positions to the left of the decimal. Entering a negative number affects
positions to the right of the decimal. Example –2 would round to the nearest cent. The number
of positions is controlled by the Profile Option
QP: UNIT_PRICE_PRECISION_TYPE.
Secondary Price Lists
As with other areas of pricing, the Basic Pricing license controls available functionality to the
user. Basic Pricing allows one Secondary price list. A secondary price list allows the pricing
engine to look at more that one price list to determine the value of the sales order line. The
Basic Pricing
Pricing engine will look to the Secondary Price list if the requesting item and unit of measure is
not on the Primary Price list. A secondary price list is a price list you have defined previously.
Any price list has the ability to be used as a secondary price list.
Price Lists and Sales Order Defaults
Fields such as Payment Terms, Freight Terms and Freight Carrier are available on the Price
List form. By defining the Order Management Defaulting Rules to use these fields from the
Price List form, you are able to default values directly into the Sales Order based upon which
price list has been selected for the order. For more information on Defaulting Rules see the
Order Management User’s Guide.
Basic Pricing
Guided Demonstration – Price List Header
(USA)
(N) > Pricing > Price Lists > Price List Setup
1. Enter XX-Base Prices as the price list name in the Name field.
2. Select the Active check box.
3. Enter a description of the price list in the Description field.
4. Enter the price list currency (USD) in the Currency field.
5. Enter a rounding factor of -2 in the Round To field.
6. Enter a default payment term of Net 30 in the Payment Terms field.
7. You may enter a comment in the Comments field.
8. Click on the Secondary Price List tab.
9. Select Corporate from the LOV.
10. Select the Save Icon to save your work.
Basic Pricing
Price List Line
Price List Line

• Enter a line for each Item and unit of
measure combination you sell
• Optionally enter one line with the Item’s

Primary UOM selected
• When the Primary UOM is selected

Inventory’s Unit of Measure conversions will
be used by the Pricing Engine
Product Attribute Product Value UOM Primary Value

Item Number BB-2100 Each $ 6.00
Item Number BB-2100 Dozen 66.00
Item Number BB-2200 Each 6.00
Price List Line

(N) Pricing > Price Lists > Price List Setup (T) List Line
The Product Attribute gives you the ability to enter one price per Item number, one price per
Item Category, or one price for All Items. If you have entered all three prices on a Price List
the Pricing Engine will always select the Item Number’s price over the Item Category’s and the
Item Category’s over All Items.
The List line UOM is a required element of the validation process. The Pricing request is for
an Item/UOM and only price lists that have the same item and unit of measure will be
considered.
• You can have the same item on the same price list if they have different units of
measures. If your selling prices vary depending on the unit of measure this is how you
will want to set up your price lists.
• Example: Price List setup: BB-2100 at $6.00 each, and BB-2100 at $66.00 a Dozen.
• Sales Order request: BB-2100 1 dozen. Result: $66.00 unit price.
If you sell products in multiple units of measure because of the convenience of packaging and
not because of a price break you will want to use the Primary UOM feature. This will enable
Basic Pricing
you to enter one price list line that can be used to sell in any UOM conversion that has been set
up in Inventory.
• If you have the Primary UOM checked and you enter an item/unit of measure
combination on a Sales Order that is not on a Price list the Pricing engine converts the
unit of measure on the order to the Item’s primary UOM and then uses the UOM
conversions to calculate the unit price.
• Example: Price List setup: BB-2200, $6.00 each, Primary UOM is selected. Sales
Order request: BB-2200 1 dozen. Result: 12*6.00 = $72.00 unit price.
Basic Pricing
Price List Line Values
Price List Line Values
• Absolute values
• Percentages of other prices
• Static Formulas
• Positive or Negative values
• Effective dates
–Start date
–End date
List Line – List Line Values

You can enter an absolute value which represents the unit price of your List line item.
For Service Program Items you have a choice of pricing methods. You can enter an absolute
value which represent the unit price of your Service Program or you can enter a Percentage
value which represents the Percentage of other item’s price. When you are selling a Service
program on a Sales Order you are prompted for the Item which the Service Program will cover.
The pricing engine finds the price of the covered item and calculates the price of the service
program by multiplying the Percent times the item’s unit price. It then takes that amount times
the duration of the coverage. Example of Percent of other price:
Price List setup:
• Service Program’s item number is set up at 10% per year.
• Sales Order request: Customer purchases 1 year’s worth of coverage for an Item which
sells for 1200.00.
• The Pricing engine calculates .10 * 1200 * 1 (year) = 120.00.
Formulas can be used to if you need an algebraic expression to calculate the selling price.
Basic pricing will support entering a formula name in the Static Formula field. Static Formulas
Basic Pricing
require that a concurrent program, Update Formula Prices, be run to populate the List Price
value prior to being used by the Pricing Engine.
The Price list will support both Positive and Negative values. This enables you to create an
Item which represent a re-stocking fee. Enter this item on your price list with a negative value,
then enter this item on your Return order. When the Pricing Engine calculates the total value of
the Return it will subtract the Restocking fee thus lowering the value of the Credit Memo.
Start and End dates are respected by the Pricing engine.
Basic Pricing
Guided Demonstration – Price List Line
(USA)
(N) > Pricing > Price Lists > Price List Setup > (T) List Lines
1. Using the XX-Base Prices price list header information. Click on the List Lines tab.
Note: Perform the remainder of the steps for each price list line that you want to create.
2. Select Item in the Product Context field.
3. Select Item Number in the Product Attribute field.
4. In the Product Value field, enter a line for each of these items AS54888, AS54999,
AS18947 and AS72111.
5. Use the default Unit of Measure.
6. Select a Line Type of Price List Line.
7. Select Unit Price as the Application Method.
8. Enter the Value of the items as follows:
• AS54888 – 1500
• AS54999 – 1700
• AS18947 – 1800
• AS72111 - 2208
9. Save your work.
Test your price list.
10. (N) > Orders, Returns > Sales Order.
11. Enter Business World (1608) as the customer.
12. Select your new price list from the LOV.
14. Enter item number AS54888, which is on your price list with a quantity of 1.
Basic Pricing
15. Enter an Item that is not on your price list.
− You can use CM13139 with a quantity of 1.
16. The Pricing Engine automatically populates the Unit Price field.
17. Select the Pricing tab.
18. Scroll to the right to view the Price List. The pricing engine changed the Price List to
Corporate, which is the secondary price list for your new price list.
Basic Pricing
Price List Mapping for Basic Pricing
Price List Secondary
List Lines Line Type Application Formula

method
Pricing Price List Unit

Attributes Line Price Static
Percent

Basic Pricing supports one Pricing Attributes context per Price List Line with up to 100
attributes.
Basic Pricing
Practice - Create Price List
Overview
In this practice you will learn how to create a Price List.
• Enter Price List Header
• Enter Price List Lines
• Enter Sales Order to test new price list.
Assumptions
Tasks
1. Create a Price List header with a name of XX-Base Prices and fill in a currency (USD) in
the Currency field.
2. In the lines area, enter four lines with a Product Context of Item, Product Attribute of Item
Number, Line Type of Price List Line and Application Method of Unit Price.
4. Enter the following values for the four Inventory Items AS54888, AS54999, AS18947 and
AS72111 with unit prices of 1500, 1700, 1800 and 2208 resepectively. Select the Primary
UOM check box for items AS54888 and AS54999.
5. Enter an additional line for Service Item WR18533 using the application method of Percent
Price and charge 5 percent of the Covered Item’s selling price per year.
6. Enter a line with a value for the category of items COMPUTER.NOTEBOOK with a value
of 2000. Use Item Category as the Product Attribute and Unit Price as the Application
Method.
7. Enter a Sales Order using your “XX” Base Prices price list and the Business World (1608)
customer.
8. Enter an order line for AS18947 with a UOM of DZ. Then change this UOM to Ea.
Basic Pricing
9. Add three more lines for items AS54888, AS54999 and AS92689
(COMPUTER.NOTEBOOK). Use a UOM of DZ with item AS54888.
10. Your customer wants to buy an Extended 6 year Service program to cover their new laptop
Add a line with for the WR18533 for the Service Reference field refer to the line with item
AS92689.
Basic Pricing
Solution - Create Price List
Login
Order Management Super User, Vision Operations (USA) Responsibility is selected.
Create Price List Header
2. (N) > Pricing > Price Lists > Price List Setup
− Enter a Price List name: XX-Base Prices.
− Enter a description. Corporate Base Prices.
− Active:
− Enter a multi currency conversion: Corporate Pricelist Conversion
− Round to: -2.
− Accept default Effective Dates.
Enter Inventory Items
3. Common values for all 4 lines:

− Line Type: Price List line
− Application Method: Unit Price
4. Enter these values:
Product Value UOM Primary UOM Values

AS54888 Ea 1500
AS54999 Ea 1700
AS18947 Ea 1800
AS72111 DZ 2208
5. Save .
Basic Pricing
Enter Line
6. Insert a new line .

− Product Value: WR18533
− UOM: YR
− Primary UOM:
− Line Type: Price List Line
− Application Method: Percent Price
− Value: 5
Enter Line with a Value
7. Insert a new line .

− Product Attribute: Item Category
− Product Value: COMPUTER.NOTEBOOK
− UOM: Ea
− Primary UOM:
− Line Type: Price List Line
− Application Method: Unit Price
Basic Pricing
− Value: 2000
− Accept defaulted date
8. Save .
Enter a Sales Order
9. (N) > Orders, Returns > Sales Order

− Select your XX-Base Prices from the Price List LOV
− Populate all required Order header fields
Basic Pricing
Enter an Order Line
10. Click in (T) Line Items.

− (Line 1.1) Item: AS18947.
− Quantity: 1
− UOM: DZ
11. Change the UOM to EA.
Add More Lines
12. New line .
13. Enter the following Item, Qty and UOM.
Basic Pricing
Questions:
• Why did the pricing engine allow you to order 1 dozen AS72111?
• Why did the pricing engine allow you to order 1 dozen AS54888?
• AS92689 is not on the XX price list, where did the pricing engine get the unit price?
Answers:
• Because AS72111 is on your price list with a unit of measure of dozen the pricing
engine pulled the price off of the price list.
• Because the “Primary UOM” is checked for AS54888, the pricing engine used the
inventory unit of measure conversions. Example: 1500 (Ea. price) * 12 (12 eachs in a
dozen) = 18,000.
• Because AS92689 belongs to the inventory category “COMPUTER.NOTEBOOK” the

pricing engine used the Category price of 2000.
Purchase an Extended 6 year Service program
14. Add a new line .

− (Line 5.1) Item: WR18533
− Quantity: 1
15. Click on (T) Services.

− Service Reference type: Order
− Service Order type: Mixed
− Service Ref Order Number: (the current order)
− Service Ref Line Number: 4
− Service Ref Shipment number: 1
− Tab to Service Duration: 6
− Service Period: Year
16. Save .
Basic Pricing
Question:
• Can you explain why the line number changed from 5.1 to 4.1…1?
• Can you explain the 600.00 Unit Price that was calculated?
Answers:
• The fifth line number digit represents a Service. By looking at the line number you can
see that line 4.1...1 is a service which is covering line number 4 shipment schedule 1.
• The warranty sells for 5% of the covered product (2000) per year. Since the customer
ordered 6 years the calculation is .05 * 2000 * 6 = 600.00.
Basic Pricing
Copy Price List
Copy Price List
Copy
Fiscal 2002 Fiscal 2003

Effective 1 Jan 02 – 31 Dec 02 Effective 1 Jan 03 – 31 Dec 03
Mouse Pad Mouse Pad

Currency Unit = 10 Currency Unit = 10
Desktop Computer Desktop Computer

Currency Unit = 350 Currency Unit = 350
Copy Price List

(N) > Pricing > Price Lists > Copy Price List
Copying a Price List allows you to quickly create a new price list without adding lines
manually to the price list. You are able to utilize controls within the Copy Price List form to
determine which line items will be copied during the concurrent process.
One option is to include the copying of discounts (modifiers) when copying an existing price
list. This option will create new Modifiers for each existing Modifier that has the original Price
List as either a Modifier List Qualifier or a Modifier Line Qualifier. The new modifier’s name
will be a concatenation of the original Modifier plus a sequence number and will have the new
Price List as a Modifier List Qualifier.
When creating the new price list you are able to specify any applicable effective dates. As the
Pricing Engine will not use the new Price List until it’s Effective Date, this will allow you to
create price lists in advance of when they will be needed within the pricing environment.
Basic Pricing
Guided Demonstration – Create a Price List
(USA)
(N) > Pricing > Price Lists > Copy Price List
1. In the Copy From region, enter Corporate in the Price List field.
2. Select the check box Include Discounts to instruct the process to copy discounts.
3. Select the check box Retain Effective Dates to instruct the process to copy the effective
dates of price list lines. If selected Price List Lines that no longer have a current effective
date will not be copied to the new price list.
4. In the Copy to region, enter XX-New Corporate in the Price List field.
5. Enter a Description for the new price list.
6. Enter the beginning Effective Date of the new price list.
7. Click Submit. The request ID is displayed in the Request ID field.
8. Verify that the request completed normally by using (M) View > Requests (B) Find (all
requests).
9. Verify that the new price list was created by using (N) Pricing > Price Lists > Price List
Setup
10. Use the flashlight to find XX-New Corporate.
Basic Pricing
Practice - Copy Price List
Overview
In this practice you will learn how to create a new Price List by copying an existing price list.
Assumptions
Tasks
1. Navigate to the Copy Price List window. Create a copy of the Corporate price list retaining
the effective dates. Use the name XX-New Corporate.
Basic Pricing
Solution - Copy Price List
Login to the database

− User Name: operations
− Password: welcome
Select Responsibility
Copy Price List
− Copy From - Price List: Corporate
4. Retain Effective Dates

− Check box: Selected
5. Copy To - Price List: XX-New Corporate

− Effective Dates: 2 months from today
6. Click on (B) Submit.
Basic Pricing
• Write your concurrent Request ID: ________________________________.
7. Click on (M) View > Requests > (B) Find (all requests).
8. Verify that the concurrent has completed normally. Then verify that a new price list was
created.
10. Use the flashlight to Find XX-New Corporate price list.
Basic Pricing
Agenda
Agenda

• Using Modifiers
Basic Pricing
Price List Maintenance - Overview
Price List Maintenance - Overview

Flexible Maintenance Features
• Manually Update
• Adjust Price List Process
• Add Items to Price List
Items Data base
Basic Pricing
Manual Price List Updates
Use Effective Start/End Dates to

Maintain Pricing History
Corporate Price List for 2002
Item Start End

Number UOM Date Date Value
BB-1000 Each 01-JAN-2002 30-JUN-2002 200
BB-1000 Each 01-JUL-2002 220

(N) Pricing > Price Lists > Price List Setup (T) List Line
To change existing Price Lists manually Navigate to the Price List Setup form and Find the
Price list that needs maintenance.
Elements you are able to update:
• You can add or change the Secondary Price List.
• You can Add New List Lines to existing Price Lists.
• You can Change List Line Values. Be aware that if you key over the existing Value you
have lost the ability to maintain a history of your previous price.
• The only way to keep a Pricing History is by manually entering an End Date on the List
Line Value that is being discontinued, then add a new line with the same Item Number
and unit of measure but with the new Value. The new List Line’s Start Date must be
greater then the End Date of the original line.
• The Pricing Engine always validates the Price List and List Line’s Effective Dates.
Basic Pricing
Guided Demonstration – Manual Price List Update
(USA)
(N) > Pricing > Price Lists > Price List Setup
1. Use the flashlight to find the XX-Base Prices price list.
4. Click on the List Line tab.
5. Use F11 to enter query mode and put your cursor in the Product Value field. Enter
AS18947 and use Ctrl + F11 to execute your query.
7. Scroll to the right and put an End Date of the last day of this month for this price list line.
8. Save your work.
9. Insert a new List line with the same item and uom. Use a value of 1820 for the unit price
and give it a starting date of the first day of the next month.
10. Save your work.
Basic Pricing
Practice - Manual Price List Update
Overview
In this practice you will learn how to manually update a Price List.
• Find an existing Price List
• Enter and end date for current price
• Add a new line with a future effective date
• Change the Value of an existing line.
Assumptions
Tasks
1. Navigate to the Price List Setup window. Find your XX-Base Prices price list. Put an end
date on the list line for item AS18947. Add a new line for the same item/uom with a future
start date and Unit Price of 1820. This preserves the pricing history of an item.
2. Change the selling price for item AS54888 to 1550 without maintaining the pricing history.
Basic Pricing
Solution - Manual Price List Update
End Date List Line
4. Use the Flashlight to select XX-Base Prices.
5. Click on (T) List Lines.

− F11
− AS18947
− Ctrl F11
− Last day of this month
6. Save.
7. Insert a new line.

− Item
− Item Number
− AS18947
− Ea
− Price List Line
8. Application Method: Unit Price.

− 1820
9. Save.
Change Selling Price
10. Query all rows: Ctrl F11.
11. Change the Value for your AS54888 to 1550.
12. Save.
Basic Pricing
Adjust Price List
Adjust Price List
Item Category
Creation Date
Increase 15%
Corporate Price List Updated

Corporate Price List
Adjust Price List

(N) Pricing > Price Lists > Adjust Price List
Use the Adjust Price List program to Mass Update your Price List Values. Be aware that using
the Adjust Price List program to change values does not create a history record. You will not
be able to recapture the old price. If you need the ability to retrieve expired prices you do not
want to use Adjust Price List.
Elements you are able to update:
• Optionally adjust only a Range of Items.
• Optionally adjust only an Item Category. Many companies adjust their Items’ selling
prices annually or when the product cost has drastically changed. This is often done by
Product Family. If you set up an Item Category to represent the Product Family you can
quickly markup the a subset of Price List Lines.
• Optionally adjust only Items with a specific Item Status.
• Any time a new line is added to a price (manually, copy or Add Items) the system
populates the Creation Date with the system date.
Basic Pricing
• Use the Creation Date to select only items that were added on a given date. This is very
helpful when you have used the Add Items to Price List program to add new items At
Cost. This enables you to markup the new items while leaving the older lines untouched.
• Adjust the Price List Value by a Percent or an Amount. This enables you to use the Copy
program to created as many price list as your business procedures support and then
Increase or Decrease as needed.
Basic Pricing
Guided Demonstration – Adjust Price List
(USA)
(N) > Pricing > Price Lists > Adjust Price List
1. Use the Flashlight to select the XX-New Corporate price list.
2. Select Percent in the Adjust By field.
3. Enter 5 in the Value field.
4. Click on the Submit button.
5. The request ID is displayed in the Request ID field.
6. View Requests to validate that the process has completed normally.
8. Use the Flashlight to find XX-New Corporate. Check the line items to view the adjusted
price.
Basic Pricing
Practice - Adjust Price List
Overview
In this practice you will learn how to perform a mass adjustment of a price list.
Assumptions
Tasks
1. Navigate to the Adjust Price List window. Adjust the XX-New Corporate price list by 5%
for all items.
2. Review the price list to verify that the adjustment completed correctly.
Basic Pricing
Solution - Adjust Price List
Login
Adjust Corporate Price List
2. (N) > Pricing > Price Lists > Adjust Price List
− Price List: XX-New Corporate.
− Adjust by: Percent.
− Value: 5.
− Write your Request ID: ____________________________________.
Basic Pricing
Validate that your concurrent request completed normally.
5. (N) > Pricing > Price Lists > Price List Setup.
6. Use the flashlight to find XX-New Corporate.
7. Click on (T) List Lines.
Notice that the prices have been adjusted.
8. Close forms.
Basic Pricing
Add Items to Price List
Item Category = Shippable

OR
Fiscal 2002
Effective 1 Jan 02 – 31 Dec 02
Item Status = Active

(N) Pricing > Price Lists > Add Items to Price List
The Add Items to Price List program allows you to quickly add items to an existing price list.
This facilitates the quick creation of new price list by eliminating the need to add individual
lines to the price list.
When using the Add Items to Price list functionality you are able to use a number of control
attributes within the form to identify which items should be added to the list. These options
include addition by the range of item numbers, item category and item status. One element
you should note is that you can only add items from this form to one list at a time. This means
that if you would like to add all of the items that have a category of Shippable to five different
price lists, you must initiate the program from this form using five separate submissions, each
time identifying the price list you wish to add the items to.
Using the Set Price Equal to Cost option, you are able to pull the current cost of the item from
inventory into the price list when you are adding that item to the price list. Select the Inventory
Organization you want to Add Items from. Be sure to enter an Organization that stores Item
costs.
Basic Pricing
Guided Demonstration - Add Items to New Price List
(USA)
(N) > Pricing > Price Lists > Add Items to Price List
1. Select XX-Base Prices from the LOV.
2. Select the Item Category Set of Inv.Items.
3. Select an Item Status of Active.
4. Select the checkbox for adding items equal to cost using Seattle Manufacturing as the
Inventory Organization.
5. Click on the Submit button.
6. When the concurrent request has completed find your price list to see the results.
8. Use the Flashlight to find the Price list that was updated.
9. If the item has a zero unit price, it is because the item had no costs associated with it in
Inventory.
Basic Pricing
Add Items to Price List For Maintenance
Add Items to Price List For Maintenance
• Quick way to add new Product Lines

• Does not write over matching Item/UOMs
Seattle’s
New Fall-Line Items
Add Items to Price List for Maintenance

(N) Pricing > Price Lists > Add Items to Price List
Not only is the Add Items to Price List program great to create your first Price List, it is also a
good tool to add Product Lines to existing price lists. When new product lines are added to
your inventory give them unique Categories so that you can quickly add them to your existing
Price Lists using the Add Items feature by Item Category.
If you’re in an industry where your selling prices are set at a given Percent over cost add your
items at cost with a Future Effective Start date. Then use the Adjust Price List program to
markup the new items.
It is important to understand that the Add Items to Price List program does not write over any
List Lines that have the same Item Number and Unit of Measure as the Inventory Item Number
and it’s Primary unit of measure. This means that you can’t accidentally write over current
valid values.
Basic Pricing
Practice - Add Items to a Price List
Overview
In this practice you will learn how to add items from inventory to an existing price list. Then
using Adjust List price you will adjust your price list prices.
• Add items to a price list
• Adjust all items prices
• View the results of all processes
Assumptions
Tasks
1. Navigate to the Add Items to Price List window. Add Active Items from the Inv.Items
Category Set to your XX-Base Prices price list. Set the list price equal to the Cost of the
items from the Seattle Manufacturing inventory organization.
2. Navigate to the Adjust Price List window. Mass adjust all items on your price list by 10
currency units.
3. Review your price list to see the changes.
Basic Pricing
Solution - Add Items to a Price List
Add Active Items
3. (N) > Pricing > Price Lists > Add Items to Price List
− XX-Base Prices.
− Item Status: Active.
4. Check Set List Price Equal to Cost Checked.
5. Inventory Organization: Seattle Manufacturing.
• Write your Concurrent Request ID. ________________________________.
Basic Pricing
8. Confirm that your request completed normally.
Mass Adjust
9. (N) > Pricing > Price Lists > Adjust Price List
− Price List: XX-Base Prices.
− Adjust by: Amount
− Value: 10
• Write the Request ID: _____________________________________.
View Price List
12. Use the flashlight to find XX-Base Prices.
13. Click on the (T) List Lines.
14. Scroll to right to see the new prices.
15. Close forms.
Basic Pricing
Agenda
Agenda

• Using Modifiers
Basic Pricing
Agreement Overview
Agreement Overview
• Generic
• Customer Specific
• Agreement Type
• Order Transaction Type Controls
• Default Values for Sales Order
• Revision History
• Standard Agreement
• Pricing Agreement
• Customer Item Numbers
Agreement Overview
Agreements
Agreements can be Generic or Customer Specific. If it is Generic than all customers are
eligible to use it. If it is Customer Specific then only the Customer Name entered on the
Agreement will be eligible.
The Agreement Type has many, varied, functions. It can be used as a Qualifier for a Discount
(Modifier). It can be used by the Order Transaction Type to restrict a group of orders to only
allow Agreements of a specified Type. It can be used to group similar agreements for
reporting purposes.
Besides restricting which Agreements a Sales Order can use, the Order Transaction Type can
also specify whether an Agreement is required in order to Book a Sales Order.
Many of the fields entered on your Agreements can be used to default the appropriate data on
to a new Sales Order/Line. Your agreement can default Customer PO, Freight Terms, Freight
carrier, payment terms, Salesperson, Invoicing Rules and Accounting Rules.
By using the Revision number, Revision Date and Revision Reason you can maintain a history
of all the changes you make to your Agreements.
You can setup 2 kinds of Agreements, Standard or Pricing:
Basic Pricing
• A Standard Agreement could have special Freight or Payment terms. You can associate
an already existing Price List to a Standard Agreement. Optionally, you can create
Discounts that are qualified by the Agreement Name or Agreement Type.
• A Pricing Agreement allows you to create a Price List as part of the Agreement setup.
The Agreement Price List has fields which are not on a regular Price List. These fields
allow you to optionally enter Customer Item Numbers which have been created in
Inventory and cross referenced to an Internal Item Number.
You can use an Agreement Number to reference a legal document that you have given your
customer.
Basic Pricing
Agreement
Agreement
• Generic Standard Agreements

• Customer Specific Pricing Agreements
Agreement Standard
Price List
Agreement
Price List
Agreement
(N) Pricing > Pricing Agreement
If you do not enter a Customer you are creating a Generic Agreement.
Effective Dates are used by the Pricing Engine to assure that only Agreements that are
currently in effect will be used. The Effective dates are also used by the Revision Control
logic. You cannot create a new revision unless the current revision has an Effective end date.
If you set the Price List Type to Agreement Price List you will have the ability to create a price
list as part of the Agreement setup.
If you set the Price List Type to Standard Price List you will be prompted to enter the name of
an existing Price List.
Basic Pricing
Guided Demonstration – Agreement Price List
(USA)
(N) > Pricing > Pricing Agreements
You can create two kinds of agreements, Pricing and Standard. Pricing agreements
allow you to add agreement lines to define the agreement prices. A Standard
agreement uses a standard price list and will not allow agreement lines.
1. In the Agreement tabbed region, enter an agreement name in the Agreement Name field.
2. Enter an agreement number in the Agreement Number field.
3. Enter Business World in the Customer field. The customer number (1608) displays in the
Cust Number field. If you leave these fields blank, you are creating a generic agreement that
can be used by all customers.
4. Select an agreement type of Standard Terms and Conditions in the Agreement Type field.
5. Enter effectivity dates in the Effective Dates field’s.
6. Enter a salesperson name in the Sales Person field.
7. Enter the signature date in the Signature Date field.
8. Click on the Pricing tab.
9. Select theAgreement Price List type in the Price List Type field:
− For Pricing Agreements: You can create a new price list name or choose from an
existing list of values of Pricing Agreement Price List.
− Enter a currency in the Currency field.
− Enter a rounding factor of -2 in the Rounding Factor field.
− Enter a description for the price list in the Description field.
10. Enter a default freight carrier in the Freight carrier field.
11. Enter default freight terms in the Freight Terms field.
12. Click on the Payment tab.
13. Select a payment term from the List of Values in the Payment Terms field.
14. In the Rules region, enter IMMEDIATE in the Accounting Rule field.
15. Enter ARREARS INVOICE in the Invoicing field.
Basic Pricing
16. To set the accounting rule override flag select the Accounting Rule check box.
17. To set the invoicing rule override flag select the Invoicing Rule check box.
18. At the bottom of the form, enter AS54888 in the Product Value field.
19. Enter Ea in the UOM field.
20. Select Unit Price in the Application Method field.
21. Select Price List Line in the Line Type field.
22. Enter 1450 in the Value field
23. Enter a new line for item AS54999 with the same UOM, Application Method and Line Type
and a price of 1500.
24. Enter the effectivity dates in Start Date and End Date. They should be within the effectivity
dates of the agreement.
25. Save your work.
26. Enter a Sales Order to test your work.
27. (N) > Orders, Returns > Sales Orders
Enter Business World (1608) in the Customer field.
Note: The next several steps are used to modify the order form to display the Agreement
number using folder tools to show the Agreement field.
28. Put your cursor on the “Total” field.
29. Click on the Folder Tools icon.
30. Click on Show Fields.
31. Put your cursor on the Agreement field and click OK.
Notice the Agreement number is displayed under the total field.
32. Select your agreement name from the LOV.
34. Enter item AS54888 from your Agreement price list.
Note that the price is retrieved from the Agreement price list.
Basic Pricing
Practice - Agreement Price List
Overview
In this practice you will learn how to create an Agreement Price List
• Create an Agreement header
• Create Agreement pricing lines
• Use the new Agreement price list
Assumptions
Tasks
1. Create a new customer agreement with Standard Terms and Conditions for Business World
(Customer #1608) that has its own price list with pricing lines for AS54888 with a unit price
of 1450 and AS54999 with a unit price of 1500. You may select any Payment Term,
Accounting Rule, and Invoicing Rule that you want.
2. Enter a new Sales Order using your Agreement. You may need to use folder tools to show
the Agreement field on the Main tab of the Sales Order.
Basic Pricing
Solution - Agreement Price List
2. Select Order Management Super User, Vision Operations (USA) Responsibility.
Create a customer agreement that has its own pricing lines
(N) > Pricing > Price Agreements
3. Agreement Name: XX-Pricing Agreement.
4. Agreement Number: 1
5. Business World (1608).
6. Standard Terms and Conditions.
7. Select from LOV.
8. Click on (T) Pricing.
9. Agreement Price List.

− XX-AGREEMENT PL.
10. Enter a Description.
11. Accept defaults.
Basic Pricing
12. Click on (T) Payment.
13. Select Payment terms from the LOV.
14. Select Accounting Rule from the LOV.
15. Select Invoicing rule from the LOV.
16. Accept defaults.
17. Click on in the Lines region.
18. Enter a line for AS54888 unit price 1450.
19. Enter a line for AS54999 with a unit price of 1500.
20. Save.
Basic Pricing
Enter a new Sales Order using Agreement
(N) > Orders, Returns > Sales Orders > (T) Order Information
IMPORTANT: If you don’t see the Agreement field on the order header use steps 2 through
5 to add it. If it is already there go to step 7.
21. Put your cursor on the “Total” field.
22. Click on the Folder Tools icon.
23. Click on Show Fields.
24. Put your cursor on the Agreement field and click OK.
Notice the Agreement number is displayed under the total field.
25. Customer: Business World (1608).
26. XX-012.
27. XX-Pricing Agreement.
Notice that the Price List was updated from the agreement.

− AS54888
− 1
Basic Pricing
The pricing engine uses the price from the Agreement price list.
29. Close forms.
Basic Pricing
Agenda
Agenda

• Using Modifiers
Basic Pricing
Formula Overview
Formula Overview
• Arithmetic Expression
• Link a Static Formula to a Price List
• Run Update Formula Prices
• Link a Formula to a Freight and
Special Charges modifier
• Formula Types
• Use the Pricing Context which can have
up to 100 Pricing Attributes
Formula Overview
The formula is an arithmetic expression made up of step numbers. Each Step number will be
defined in the Formula Lines region. You can repeat step numbers in the formula. Example: 1
* 2 + 3 – 1.
Link your formula to a Price List by putting the Formula name in the Static Formula field on
the List Line that has the Item number(s) that are to get their prices derived from the formula
(don’t enter a price, let the processing program calculate the price value).
You must run the Update Formula Prices after entered your Formula name in the Static
Formula field on the Price List. This concurrent request will use your formula to calculate the
price that will populate the List Line’s Value field. Link a formula to a Freight and Special
Charge Modifier.
With Basic Pricing you are restricted to three Formula Types, Numeric Constant, Pricing
Attribute and Factor List. Basic Pricing uses the seeded Pricing Context which has up to 100
Pricing attributes.
Basic Pricing
Basic Pricing Formula
• Name
• Effective Dates
• Formula
Mathematical Operators
Numeric Operands
PL/SQL
• Formula Type
Numeric Constant
Pricing Attribute
Factor List

(N) Pricing > Pricing Formulas > Formulas Setup
When using the basic pricing formula:
• The Name is a unique identifier.
• The Pricing Engine uses the Effective dates.
• Use the Formula field to enter your formula expression. Each numeric value entered
must be defined using a Formula Type on the Formula Line tab. You can use
mathematical operators, numeric operands, and PL/SQL to create your formula
• The formula type Numeric Constant can be any numeric value. It can be a whole number
or a decimal number. (1 or .1)
Pricing Attribute and Factor List are explained next, separately.
Basic Pricing
Pricing Attribute
Pricing Attribute
• Characteristic of an Item
Thickness, Height, Length
Age, Usage
Number of users
Level of service
• Absolute value of Pricing Attributes
Example
Formula = 1 x 2 Pricing Request
Step 1: Thickness: .3 Thickness: 0.3 mm
Step 2: Base price 100 Calculation: 1 x 2 = 0.3 x 100 = $30
Pricing Attributes
Pricing attributes are characteristics of products and services that you can specify when the
characteristics help to determine the price of a product or service. Distance, age or usage,
number of users, and level of service are examples of pricing attributes.
You can specify one or a combination of pricing attributes and assign them to a product or
service. The absolute value of a pricing attribute (such as thickness or height) of an item can be
used as a Step in the formula.
Example:
This formula would use a Constant Value and a Pricing attribute to calculate an item’s unit
price.
You sell glass plates that can vary in thickness. You want the price to vary depending on the
thickness. Create a formula 1* 2 to calculate the price of a glass item.
• Step 1 is a pricing attribute for thickness
• Step 2 is a numeric constant which represent the base value for the item.
Calculation: If 100 is the base price of the glass item and 0.3 is the value of the thickness
attribute of the glass then the pricing engine evaluates the formula as 0.3*100 which is 30.
Basic Pricing
Factor List
Factor List
• Create a List of Values to be factored
Example: Skill Level Factor
Apprentice .85
Staff 1.0
Principal 1.5
• Create And and Or Conditions
Base Price Attribute lines are OR logic
Associate Pricing Attribute lines are AND logic
• Single value for a Pricing Attribute

Operator: =
• Range of values for a Pricing Attribute
Operator: BETWEEN
Factor List Formula Type

Use Factor Lists to associate values and factors with a Pricing Attribute. The Pricing engine
compares the Values entered on a Sales Order to the values in the Factor List to select the
correct Factor to use.
For example you may need to factor in the Skill level of your Consultants when calculating the
sales order price.
Base Price $100 Skill Level Factor Results

Apprentice .85 Markdown $ 85
Staff 1.0 Regular Price 100
Principal 1.5 Markup 150
The Formula’s Pricing Context must match the Pricing Context on the Price List Line that the
formula is being attached to.
You can create OR logic by the way you define your factor list. Each value that a Pricing
Attribute can have is entered as a Base Price Attribute line. Example of OR logic:
Basic Pricing
• Base Price Attribute Thickness = Value: 0.1 mm Factor: 1
• The pricing engine will retrieve a Factor if the customer orders a thickness of 0.1 mm
OR .2 mm.
You can create AND logic if you link an Associated Pricing Attribute line to the Base Price
Attribute line. Example of AND logic:
• Associate Pricing Attribute Length = Value: 0.5 mm.
The pricing engine will use the Factor 7 if the customer orders a thickness of 0.1 mm AND a
length of 0.5 mm.
You can assign a single value to the Pricing Attribute or a range of values by using the
Operator field. The Operator = (equal) is a single value. The Operator BETWEEN allows you
a range of values.
See Examples above to understand single value.
You can also use multiple values within factor lists. Example of multiple values:
• Base Price Attribute Thickness BETWEEN Value: 0.1 and .3 mm Factor: 3
• Base Price Attribute Thickness BETWEEN Value: 0.4 and .6 mm Factor: 6
• The Pricing Engine will use the Factor 6 if the customer orders a thickness of 0.5mm.
Basic Pricing
Guided Demonstration – Pricing Formula
(USA)
(N) > Pricing > Pricing Formulas > Formula Setup
1. Enter Demo-Formula in the Name field.
2. Enter a description of the pricing formula in Description.
3. Enter 1*2 in the Formula field.
4. Select List Price as the Formula Type for line 1 with a value of 1 in the Step field.
5. Select Numeric Constant as the Formula Type for line 2 with a value of 1.5 in the
Component field and a value of 2 in the Step field.
6. Save your work.
Basic Pricing
Agenda
Agenda

• Using Modifiers
Basic Pricing
Qualifier Overview
Qualifier Overview
• Use Qualifiers to create rules for your

Modifier Lists
Modifier Lines
• Group your Qualifiers using
And and Or logic.
Group # Context Attribute Operator Value

1 Customer Customer Name = BB Printing
1 Customer Ship to Site = San Francisco
2 Customer Customer Name = Paul’s Printing
2 Customer Ship to = San Francisco
Qualifier Overview
Qualifiers are an intricate part of the pricing logic. Qualifiers create rules that Protect your
Price Lists and Modifiers from being misused. To create your qualifier rules, group any of the
seeded qualifiers using AND and OR logic.
• If the Group Numbers are the same it is AND logic.
• If the Group Numbers are different it is OR logic.
Example:
Group # Context Attribute Operator Value
1 Customer Customer Name = BB Printing
2 Customer Customer Name = Paul’s Printing
Basic Pricing
Seeded Qualifier Contexts
Seeded Qualifier Contexts
MODIFIER LIST Qualifiers
“Context” “Qualifier Attribute”

Customer Customer Name, Bill to, Ship to, Class
Modifier List Price List
MODIFIER LINE Qualifiers
“Context” “Qualifier Attribute”

Customer Agreement Name, Agreement Type
Order Customer PO, Order Type
Seeded Qualifier Context

The Qualifier Attributes represent values that can be compared to values on your Sales Order.
Using these qualifier attributes the Pricing engine can determine which modifier list and
modifier lines should be applied to the Order.
Basic Pricing limits the seeded qualifier context to for both the Modifier List and the Modifier
Line.
Qualifiers for Modifier Lists:
Customer:
• Customer Name
• Bill to
• Ship to
• Customer Class
Modifier List:
• Price List
Qualifiers for Modifier Lines:
Customer:
Basic Pricing
• Agreement Name
• Agreement Type.
Order:
• Customer PO
• Order Type.
When using Qualifiers:
• Qualifier Contexts are Descriptive Flexfields.
• Qualifiers Contexts do not store relationships among the hierarchies.
• Qualifier Context is a way of grouping similar attributes in the qualifier Flexfield.
• You indicate the level in the hierarchy by the flexfield sequence. This sequence is
defaulted on to the Price list or Modifier as the Precedence Number.
• The Qualifier Attributes represent values that can be compared to values on your Sales
Order. Using these qualifier attributes the Pricing engine can determine which Price List
should be used and which modifiers should be applied to the Order.
Basic Pricing
Agenda
Agenda

• Using Modifiers
Basic Pricing
Modifier Overview
Modifier Overview
• Required to adjust a List Price

• Discounts, Surcharges, Freight/Special Charge
• Order or Line level
• Automatic, manual or overridable
• Qualifiers improve performance
• Enforce pricing policies with Qualifiers
• Visible from the Order and Order Line
Modifier Overview
Using Modifiers is the only way you are allowed to adjust the Price List price.
Discounts, Surcharge and Freight and Special Charge are all valid Modifier types with basic
pricing.
• Create Order Level Modifiers to apply modifier to all Order Lines.
• Create Line Level Modifiers to apply modifier to only the current line.
Qualify your Modifier List to improve the performance. If the Pricing Engine can disqualify
Lists that are not applicable to the current pricing request it will improving processing time.
By putting qualifiers, that act as rules, on you modifier List and Lines you can create discounts
that will be automatically applied by the Pricing Engine to enforce your pricing policies.
From the Order or Order Line you can use the Action – View Adjustments to see the details of
Modifiers that were applied automatically by the Pricing Engine or to apply Manual discounts.
Also, if the modifier is overridable you can use this form to enter new values or over ride the
pre-defined values.
Basic Pricing
Modifier Structure
Modifier Structure
• Type
• Currency • Cust Name
• Start Date List • Addresses
Modifier List
• Active Qualifiers • Cust Class
• Price List
• Level
• Type Line • Order Type
• Start/End Date Modifier Lines Qualifiers • Cust PO
• Automatic/Manual • Agreement
• Override Name
Type
Pricing
Price Breaks
Attributes
• Attribute • Qty/Price
• Operator • Discount %
• Value • Effective Dates
Basic Pricing
Modifier List
Modifier List
• Uniquely name your Lists

• List Types:
Discount
Surcharge
Freight and Special Charge
• One Currency
• Start Dates
• Establish Rules with List Qualifiers
Modifier List
(N ) Pricing > Modifiers > Modifier Setup
The Modifier Type restricts the kinds of lines that can be attached. Basic Pricing supports three
types of Modifier Lists:
• Discounts create a negative price adjustment.
• Surcharges create a positive price adjustment.Freight
• Special Handling create a charge amount.
Elements within the Modifier List form:
• The Active checkbox allows the modifier list to be used by the Pricing engine.
• The Automatic checkbox at the List level is a default for lines.
• The Start Dates indicate when the Modifier List is effective.
• The currency on the Modifier list must match the currency on the Pricing Request.
• Use a combination of qualifiers to establish pricing rules that will be respected by the
Pricing Engine.
Basic Pricing
• Modifiers can remain Price List independent or you can use your Price Lists as
qualifiers.
Basic Pricing
Modifiers Lines
Modifiers Lines
• Modifier Number
• Level: Order or Line
• Modifier Type: Discount, Surcharge,
Price Breaks, Freight/Special Charge
• Start/End Date
• Print on Invoice
• Automatic/Manual
• Overridable
• Product Attribute
• Line Qualifiers
• Best Price
Modifier Lines
(N) Pricing > Modifiers > Modifier Setup (T) Modifier Summary
The Modifier number is a unique identifier within a List. It can be alpha or numeric.
Levels within modifier lines:
• If you create an Order Level modifier the adjustment will be applicable to all lines on the
order. If it is a Freight Charge it would only be applied once to the Order Header.
• Line Level modifiers only adjust the pricing request’s line.
Types of modifier lines:
• Define Discounts to markdown the Price List Price.
• Define Surcharges to markup the order to handle minimum order requirements.
• Create Freight and Special Handling charges to meet your business requirements.
• Price Breaks can either be Discounts or Surcharges. You can break on order quantity or
amount.
.Elements when defining modifier line:
Basic Pricing
• The Pricing Engine uses the Start and End Dates to establish effectivity .
• Print on Invoice is controlled by a profile option. If it is selected the discounts will print
on your invoices. Otherwise, the net amount is passed to Receivables.
• The Automatic checkbox is selected if you want the Pricing Engine to apply the modifier
to all qualified orders and order lines.
• To create Manual discounts leave Automatic unchecked. You can use the Action – View
Adjustments to apply manual modifiers.
• To avoid a user from changing the Selling Price calculated by the Pricing engine leave
Override unchecked.
• Some businesses have such a flexible selling price that they need the ability to type right
over the calculated price with a new price. To do this you would need to create a
modifier line which has Automatic unchecked and Override checked.
• Optionally, restrict the modifier to a specific Item number or item category by using the
Product Attribute.
If the Pricing Engine finds multiple discounts that are qualified to be applied it always applies
the modifier which will give the best price to the customer.
View your Discounts and Surcharges from the Sales Order’s Action – View Adjustments
menu. View your Freight and Special Handling charges from the Action – Charges menu.
Basic Pricing
Pricing Adjustment Examples
Pricing Adjustment Examples
Discount 10% off item A
10% surcharge for purchase

Surcharge
of under 100 units of item A
450 currency unit freight cost

Freight/Special Charge
on entire order
Price Breaks From To Percent
1 10 4
11 20 6
21 99999999 10
Basic Pricing
Discounts/Charges
Discounts/Charges
• Charge Name for:

Freight/Special Charges
• Include Freight on Returns

• Formula for:
Freight/Special Charges
• Application Method
Percent, Amount, New Price
Lump sum
• Value for adjustment
Discounts/Charges
(N) Pricing > Modifiers > Modifier Setup (T) Discounts/Charges
If the Modifier Line Type is Freight/Special Charge identify what type of charge is it by
selecting a Charge name. For example your modifier line may be for Duty fees, Export Fees,
Freight Costs, Handling costs or Insurance costs.
The Include on Return checkbox determines whether the Freight/Special charges should be
included on a Return order.
Freight/Special Charge modifier lines can be linked to a formula. If your modifier represents
an estimated freight you could write a formula to take the actual Shipping charges entered on
the Ship Confirm form and update your estimates to reflect the actual costs. Freight and
Special Charges appear on the Invoice.
The Application Method lets you apply a Percent of the lines value, a fixed amount, or New
Price to adjust the Price list price. Any of these application methods will use the quantity
ordered to calculate the final selling price. If you are creating a Freight/Special Charge you
can specify a Lump sum as the application method. Lump sum is independent of the lines
quantity.
Basic Pricing
The Value could represent a percent, an amount, a new price or a lump sum and is the value
that the Pricing Engine will apply to the Order or Order Line.
Basic Pricing
Guided Demonstration – Create Modifiers
(USA)
(N) > Pricing > Modifiers > Modifier Setup
1. Enter Discount List in the Type field. XX-Demo ModifierEnter the modifier list number in
Number.
2. Enter XX-Demo in the number field and XX-Demo Modifier in the Name field.
3. Select the Automatic check box.
4. Enter a currency (USD) in the Currency field.
5. Enter a description of the modifier in the Description field.
6. Save your work.
7. Select the List Qualifiers button to add a qualifier at the List level.
8. If the Qualifier Groups window appears, this list has no qualifiers. Click on OK to access the
qualifier form.
9. The QUALIFIER window appears.
10. Enter 1 in the Grouping Number field.
11. Enter
− Qualifier Context: Modifier List
− Qualifier Attribute: Price List
− Operator: =
− Value From: XX-Base Prices
13. Select the tab Modifier Summary to enter a Modifier Line.
14. Accept the default for the Modifier No field.
15. Enter Line in the Level field.
16. Enter Discount in the Modifier Type field.
17. Enter List Line Adjustment as the Pricing Phase for this modifier line.
18. Select the tab Discount/Charges.
Basic Pricing
19. Enter Percent in the Application Method field
20. Enter 10 in the Value field.
21. Save your work.
Basic Pricing
Practice - Create Modifiers
Overview
In this practice you will learn how to create Modifier Lists and Modifier Lines.
• Create a Modifier List
• Put a Qualifier on the Modifier List
• Create a Discount Modifier Line
• Create a Price Break Modifier Line
• Create a manual surcharge Modifier Line
• Enter a Sales Order to test the Modifiers
Assumptions
Tasks
1. Create a Modifier List and put a qualifier on the list.
• N > Pricing > Modifiers > Modifier Setup
• Use an automatic Discount List type modifier with a name of XX-Mod List using your
selected currency.
• Put a Qualifier on the Modifier List with a context of Modifier List, an attribute of Price
List and the Value equal to XX-Base Prices.
• Create a Discount Modifier Line to apply at the Line level with the pricing phase of List
Line Adjustment using an application method of Percent and a value of 10.
2. Create an automatic Line Level price break modifier that will apply a percentage discount
based on the ordered quantity of AS54999.
Basic Pricing
• Use a Price Break Modifier Line to apply at the Line level with the pricing phase of List
Line Adjustment using a product attribute of Item Number and a product attribute value
of AS54999. The volume type should be Item Quantity with a break type of Point, an
operator of Between, a UOM of Ea and an adjustment type of Discount. The values for
the from and to should be 1-10 = 8%, 11-20 = 12%, and 21-999999999 = 15%.
3. Create a manual Line Level 2% Surcharge modifier. Allow override to give flexibility to
applying surcharges to an order line. Use List Line Adjustment as the pricing phase for this
modifier.
4. Enter a Sales Order for Business World (1608) using the price list XX-Base Prices.
• (N) > Orders, Returns > Sales Order
5. Test the 10% automatic modifier by entering line l.l for AS54888 with a quantity of 1. Then
use the Action button to apply the manual surcharge of 2% to the order line.
6. Enter a line for AS54999 with a quantity of 25 to test your quantity break discount.
Basic Pricing
Solution - Create Modifiers
Login
Create a Modifier List
2. (N) > Pricing > Modifiers > Modifier Setup

− Type: Discount List
− Number: XX-Mod List
− Active:
− Name: XX Modifier List
− Automatic: Checked
− Currency: LOV
− Description: Enter a Description
3. Click on (B) List Qualifiers.
4. If a “Qualifier Group” window pops, Click on (B) OK to access the qualifier form.
− Accept Default grouping number

− Operator: =
5. Click on (B) OK.
Basic Pricing
Create Automatic Line Level
6. (T) Modifier Summary.

− Accept Default Modifier No
− Level: Line
− Modifier Type: Discount
− Override: Unchecked
− Pricing Phase: 10 List Line Adjustments
7. Click on (T) Discounts/Charges.

− Application Method: Percent.
− Value: 10.
Create Automatic Line Level Price Break Modifier
8. Add a new line.

− Level: Line
− Modifier Type: Price Break Header
− Attribute Value: AS54999
− Volume Type: Item Quantity
− Break Type: Point
Basic Pricing
− Operator: BETWEEN
− UOM: Ea
9. (T) Price Breaks.

− Adjustment Type: Discount
10. Click on (B) Define Details.
11. Enter From to Values:

− 1 – 10 8 %
− 11 – 20 12 %
− 21 – 999999999 15 %.
Basic Pricing
12. Save.
13. Close the Price Break form.
Create a Line Level Manually
14. Add a new line.

− Level: Line
− Modifier Type: Surcharge
− Automatic: Unchecked
− Override: Checked
15. Click on (T) Discounts/Charges.

− Application Method: Percent.
− Value: 2.
Basic Pricing
16. Save.
Note on MANUAL DISCOUNTS: Your business may require that users be able to apply a
manual discount during order entry.
− To create a discount that can be applied manually and the value can’t be changed
enter: Automatic and Override .
− To create discounts that can be applied manually AND allows the user to modify the
defaulted value enter: Automatic and Override .
17. Close forms.
Enter Sales Order
18. 18.(N) > Orders, Returns > Sales Order

− Customer: Business World (1608).
− Customer PO: XX-013.
− Price List: XX-Base Prices.
19. Populate all required Order Header fields.
Basic Pricing
Enter Line
20. (T) Line Items.

− Item: AS54888.
− Qty: 1.
21. Save.
22. Click on (B) Actions > View Adjustments.
Notice that your 10 % discount has been automatically applied.
Let your instructor know if your modifier was not automatically applied.
(Hint: check to be sure that your XX-Base Prices price list is displayed in the Pricing tab).
23. Add a new Adjustment line.

− Modifier Number: XX-Mod List.
− Accept 2 (default).
24. Click on (B) Apply.
Basic Pricing
Notice that the price now has been adjusted with the10% discount and the 2 % surcharge.
Enter a Line
25. Add a new order line.

− Item: AS54999.
− Qty: 25.
26. Save .
27. Click on (B) Action > View Adjustments.
Notice that the system automatically applied the Price Break modifier of 15% because it
gives a better price to the customer than the automatic 10% discount.
− IMPORTANT: if you are using a database that has Advanced Pricing installed your
results will be different. The Pricing Engine would have applied both the 10% and
the 15 % because they are both setup as automatic.
− The results would be a lower unit price:
Basic Pricing
28. Close forms.
Basic Pricing
Summary
Summary

• Understand the Pricing Engine
• Enter Price Lists
• Maintain Price Lists
• Create Agreements
• Create Formulas
• Use Qualifiers
• Create Modifiers
Basic Pricing
Basic Pricing
Shipping
Chapter 13
Shipping
Chapter 13 - Page 1
Shipping
Shipping
Shipping
Chapter 13 - Page 2
Objectives
Objectives
After completing this module, you should be able

to do the following:
• Understand the complete shipping cycle from
Pick Release through Ship Confirm
• Release Sales Orders for Picking
• Ship Confirm picked orders
• Perform the necessary Shipping Setups
• Understand Shipping’s APIs and Interfaces
Shipping
Chapter 13 - Page 3
Agenda
Agenda
• Understanding Shipping Concepts

• Using Pick Release
• Entering Ship Confirm
• Defining Shipping Setups
• Shipping APIs and Interfaces
Shipping
Chapter 13 - Page 4
Ship Order
Ship Order
Enter
Book
Reserve
Pick
Stage
Ship
Ship Order
Once a Sales Order has been booked, the Sales Order Lines must complete all workflow
activities leading up to the Shipping Activity. Two typical preceding activities are Schedule –
Line and Create Supply.
Schedule – Line:
Scheduling the line makes the Order Line’s demand visible to Inventory for planning. It also
sets the Shipment Schedule Date.
Create Supply:
Configurable items must complete the Create Supply activity which takes an order line through
a build cycle. The final assemblies that are completed out of Work in Process are received to
inventory as Reserved for a specific customer’s order.
Drop ship order lines must complete the Create supply activity too. Once a Purchase
Requisition has been passed to Purchasing the Order line advances to the Shipping Activity.
Standard shippable items don’t need to perform any of the Create Supply activities so directly
advance to the Shipping activity.
Shipping:
Shipping
Chapter 13 - Page 5
When an Order Line reaches the ‘Ship Line’ workflow activity, Order Management calls
Shipping APIs to indicate that a line is pick eligible.
The line status is changed to “Awaiting Shipping”. Order lines that are awaiting shipping are
called “Delivery Lines” in the Shipping module.
Pick Release moves orders to a staging location and reserves inventory. From the staging area
shipments can be weighed, packed and shipped.
Orders are ship confirmed out of the staging location.
When a delivery is ship-confirmed, Shipping calls OM APIs to communicate the event,
triggering the line flow to move forward.
Shipping
Chapter 13 - Page 6
Shipping Concepts
Shipping Concepts
Trips Deliveries Delivery Lines LPNs Locations
Bill of
Lading
Shipping Concepts
Trip
• A trip is carrier specific and represent a unique instance of that carrier leaving your
warehouse carrying deliveries.
• The carrier could be a public carrier such as UPS, DHL, FedEx, or could be a company’s
own fleet of trucks
• A trip could represent a truck, air cargo, ship cargo, or railcar. These entities would be set
up as Items in Inventory with an item type of “vehicle”.
• Each trip has a minimum of two stops, Pick-Up and Drop-Off.
• A trip can be created automatically or manually from the Shipping Transaction form or
can be automatically created from the Ship Confirm form.
• Companies that use public carriers let the system automatically create Trips as part of of
the Ship Confirm process. This eliminates unnecessary transactions.
Stops
• A Stop is a point along the route that a trip makes to it’s final destination.
Shipping
Chapter 13 - Page 7
• The Ship Confirm process initiates the “Pick-Up” stop and putting the Delivery “In-
Transit”.
• Manually record all stops made by the Trip using the Shipping Transaction form or have
the Ship Confirm process automatically close a Trip, which creates and closes the “Pick
up” stop and changes the Delivery status to “Shipped”.
• Companies that use public carries let the system automatically close a Trip as part of Ship
Confirm.
Delivery leg
• A Delivery Leg consists of two stops where the delivery is picked up and dropped off,
respectively on the same trip. The delivery might travel through several legs to get to its
final destination. A Delivery leg is synonymous to the Bill of Lading.
• A bill of lading is a receipt, listing all the goods that were signed over to a carrier.
• The Ship Confirm form has the option to generate a bill of lading which can then be
printed as part of the Delivery Document Set.
Deliveries
• A Delivery is required to perform Ship Confirm. It represent all the goods that were
shipped from the same warehouse, going to the same Customer location.
• The grouping of delivery lines into deliveries is restricted by the grouping rules that are
established on the Shipping Parameters - Delivery Grouping Tab.
• A Delivery can be created automatically or manually from the Shipping Transaction
form at any time after the order lines have become “Awaiting Shipment” or can be
automatically created during the Release Sales Order process.
Delivery Lines
• Delivery Lines are Sales Order Lines which have completed all their workflow activities
that are prerequisites to Shipping such as Schedule – Line or Create Supply.
• Delivery lines are visible from the Shipping Transaction form. They are also visible from
the Sales Order Line’s Additional Information – Deliveries tab.
LPNs
• LPN, (License Plate Number) are also known as Containers.
• A container can be loaded inside of another container, for example, pack an item into a
box and then pack that box onto a pallet.
• Containers must be setup as inventory items.
• Containers can be made mandatory using your Shipping Parameters.
Ship From
• The Ship From location represents the warehouse that is performing the shipping
transaction. A warehouse is an Inventory Organization. Each address that you can ship
from within an organization must be setup as an Inventory location.
Ship to:
• The Ship To location represents a “Ship-To” address that has been setup on the
Customer’s record.
Shipping
Chapter 13 - Page 8
Pick Release Concepts

Which Orders to fill? Release Rules
3 2 1
In what order to fill? Release Sequence

Rules
3 1 2
What material to use?

Picking Rules
How to group on Pick Slip?

Pick Slip Grouping
Rules

Release Rules
• Release Rules define the criteria to be used during Pick Release. Only orders which meet
the criteria and are eligible will be Released. An Order line is eligible if it has completed
the prerequisite workflow activities, such as Schedule - Line or Create Supply.
Release Sequence Rules
• Release Sequence Rules determines the order in which inventory is allocated to sales
orders. Users can choose to allocate by order, outstanding Invoice value, Scheduled
Date, Departure Date & Shipment Priority.
• The order in which sales orders are filled could be very important. If a company has a
problem of running out of material before all of their orders have been filled it is very
important that they have filled their most important orders first.
Picking Rules
• Picking Rules, which are created and maintained in Inventory, suggests which material to
use, based on inventory controls such as Revision control, Lot control, FIFO (first in first
out) or subinventory/locator picking numbers.
Shipping
Chapter 13 - Page 9
• Picking Rule is an Item Attribute. Create a variety of picking rules and associate them
with the appropriate items. If there isn’t a Picking Rule associated with the item, the
system will use the Organization’s default Picking Rule which is found on the Shipping
Organization’s Parameters.
• Note: Picking Rules are covered in Inventory. To learn more see Inventory’s users
guide.
Pick Slip Grouping Rules
• Pick Slip Grouping Rules organize how released order lines are grouped on Pick Slips
for ease of picking. For Example: By using the Pick Slip Grouping Rule "Sub-Inventory"
the user can reduce the number of trips to a particular subinventory by grouping all lines
for that sub-inventory on to one Pick Slip.
Shipping
Shipping Transactions User Interface
Shipping Transactions User Interface
Query Manager Data Manager

• Trips • Pick Release
• Stops • Ship Confirm
• Deliveries Create/Plan
• Delivery Lines • Trips/Stops
• Containers • Deliveries
• Saved Queries • Delivery Lines
• Folder enabled • Containers
Shipping Transactions user interface

(N) > Shipping > Shipping Transaction
The Shipping Transaction form is a workbench that consolidates planning, executing and
viewing all aspects of the Shipping Process. The user interface is composed of two elements;
the Query Manager and the Data Manager. It allows for extensive use of Oracle Folders and
Tree Capabilities. Change prompts, move fields, hide/retrieve fields.
Query Manager
• The query manager finds trips, stops, deliveries, delivery lines and containers.
• Define and Save queries using the query manager for fast retrieval of data.
Data Manager
• Create or change data easily using the Data Manager.
• Plan trips, stops, deliveries, delivery lines and containers.
• Perform Pick Release and Ship confirm from the same form.
Shipping
• Pick Release can be launched directly from the Shipping Transaction form based on
criteria set up in shipping parameters or the Release Sales order form can be called from
the Tools menu.
• Use the Ctrl - Right mouse button to select multiple records to transact at one time.
Shipping
Pick Release Process Flow
Pick Release Process Flow
Move Orders
Enter Move
Order Transactions Allocate Inventory
Inventory Pick
Reservation Slips
Pick Confirm
Source
Stage Subinventory Transfer Location
Pick Release Process

What Happens during Pick Release:
• A pre-approved Move Order is automatically created in Inventory.
• A Move order is a request for a subinventory transfer from the source (stocking)
subinventory to the destination (staging) subinventory.
• A Move order is created for every Sales Order Line that has the status of “Awaiting
Shipping” and passes the picking criteria (Use your Release Rules to guide this process).
• The Destination subinventory is the Staging subinventory entered on the Release Sales
Orders form or defaulted from the Shipping Parameters. Only one staging subinventory is
allowed per Picking Batch.
• Note: A Picking Batch is the total number of Order Lines that were released at one time.
• Inventory uses the move order to manage material requisitions within an Organization.
Allocate Inventory to the move order
• Allocating can be done automatically after the move order is created by setting “Auto
Allocate” to yes on the Release Sales Order form or postponed until later, then manually
allocated from the Transaction Move Orders form.
Shipping
• The Release Sequence Rule, that was entered on the Release Sales Orders form, or
defaulted from the Shipping Parameters, will be used to determine in what sequence to
fill the move orders.
• Move orders use inventory’s picking rules to suggest the material that should be
allocated. The sourcing values for subinventory, locators, revisions, and lots are defaulted
on to the move order.
• Serial Numbers can be allocated if the profile option: INV: Detail Serials = “Yes”. If it is
set to “No” serial numbers can be entered before Pick Confirm from the Move Orders
form or after Pick Confirm from the Shipping Transaction form.
• The source defaults can be manually updated from the Transaction Move Orders form.
• A high level reservation is placed for the Move Order’s material requirements.
• Allocating inventory is a prerequisite for printing Pick Slips. The Pick Slip Grouping
Rule entered on the Release Sales Orders form or defaulted from the Shipping
Parameters is used while printing pick slips.
Pick Confirm the move order
• Pick Confirm can be done automatically during the picking process by setting “Pick
Confirm” to yes on the Release Sales Orders form or by unchecking the Pick Confirm
Required checkbox in the Organization Parameters form. If it is not done automatically
during pick release it can be done manually from the Transaction Move Orders form by
selecting the Transact button.
• The Pick Confirm transaction executes the subinventory transfer, moving the material
from it’s source location to it’s destination staging location. Only 1 staging subinventory
is supported per picking batch.
• The high level reservations are replaced with detail reservations.
• Note: A high level reservation puts a reservation on a given quantity. For example if
the sales order line needs ten 12” Monitors and you have 15 on hand, the reservation will
guarantee that 10 of them will be available for this order but it doesn’t specify which 10.
Detail reservations puts a reservation on specific subinventory, locator, revision, and lot
number.
• If you transact less than the requested quantity, the Move Order will stay open until the
total quantity is transacted, or the order is closed or cancelled.
• The status of the Sales Order Line, which is linked to the Move Order, is changed to
“Picked” making it eligible for Ship Confirm.
• If not all of the Move order quantity was transacted the status of the Sales Order Line, is
changed to “Picked Partial”. During Ship Confirm the order line will split into 2
shipment schedules (e.g. 1.1 and 1.2). The status of the unfilled line will be changed to
“Awaiting Shipping”.
• If there is a shortage of material a shortage messages alerts the appropriate individual.
• If an organization’s actual picks rarely deviate from the suggested material, it is
suggested that you run your picking process with Auto Allocate and Pick Confirmed set
to Yes to cut down on the overhead which is required to transact manually.
Auto Create Deliveries - Optional
Shipping
• A delivery is required in order to Ship Confirm. You can select to have the Picking
process automatically group your delivery lines into deliveries to expedite this process.
Shipping
Ship Confirm Process Flow
Ship Confirm Process Flow
Ship Confirm Delivery
Ship * Backorder Stage Cycle

Count
Inventory Requires Leave
Re-Pick Staged B.O.
Cost of Inventory
Goods Sold Activities Transfer
Reservation
To Cycle
Issue from Remove Decrement Count
stores Reservations Inventory
* Reservations removed
Ship Confirm Process

What happened during Ship Confirm:
The results of the picking process are recorded against a Delivery.
• Ship Confirm can only be performed on Deliveries with Delivery Lines that have been
Pick Confirmed.
• Ship confirming a delivery records the results of the picking process. These results could
be shipped, backordered, staged or cycle count or a combination of all 4.
• The workflow activity will be completed when the quantity picked is recorded as
“Shipped”.
• If the ordered item is set up with the item attribute “Shippable” checked, Ship
Confirming is a prerequisite for Invoicing.
• The Sales Order – Action- Additional Line Information – provides a complete history of
the line’s shipping process from “Ready to Release” through “Shipped”.
Over/Under Tolerances
Shipping
• The Ship Confirm process will check the Over/Under tolerance associated with the
customer, the item, as well as the corporate policies set up using profile options. OM:
Under Shipment Tolerance, OM: Over Shipment Tolerance.
• At ship confirm, you can confirm a quantity greater than the quantity on the line if it is
within the over-shipment tolerance. If it is greater than the over shipment tolerance, a
warning will be given. The actual quantity shipped is recorded on the line. The point of
using over-ship tolerances is to allow a greater quantity to be shipped without having to
add another line to the Sales Order.
• The under-shipment tolerance works a little different - at ship confirm, you can confirm a
quantity less than the quantity on the line - but if the quantity shipped is within the under-
shipment tolerance, then the line will be closed once the shipment is processed. If the
quantity shipped is outside the tolerance, the line will split into 2 lines - the one line
representing the quantity shipped and the other containing the difference. The point of
using under-ship tolerance is to save the user from having to cancel any remaining little
bits of a line, if there is no intention or need to ship it.
• Invoicing of over shipments will be controlled by the profile option, OM: over shipments
Invoice Basis - which will control whether to invoice for the quantity shipped or quantity
ordered. Under shipments are always invoiced at quantity shipped.
Shipped Quantities
• Once the delivery is closed the Order Line is updated with the shipped quantities and the
status of the line is changed to “Shipped”. This enables the order line to proceed to its
next workflow activity.
• The Ship Confirm transaction initiates the Inventory Interface to generate the “Issue of
Stores” transactions which will decrement inventory and remove the material reservation.
Then the OM interfaces is initiated to update the Sales Order Line with Shipped
quantities, freight charges, etc.
• The Cost of goods sold account number that is passed to inventory is workflow
generated. In Inventory it creates a Material Distribution record that is ultimately passed
to the General Ledger.
• If Ship confirm is partial the remaining quantity can be either staged or backordered.
Backordered Quantities
• Backordered quantities are left in the Staging Subinventory. They are not automatically
returned to their source location.
• A new pick release will be required before they can be ship confirmed.
• The backordered quantity is removed from the delivery being Ship Confirmed.and the
reservation is removed making the quantity available to ATP.
• The Sales Order line splits into shipment schedules. One schedule will have the quantity
that was shipped and a status of “Shipped”. The other schedule will have the quantity
that was backordered and a status of “Awaiting Shipment”. Example of resulting split.
Original Sales Order line:
Line Item Ordered Shipped Status
1.1 BB-2002 10 Picked After Ship Confirm (8 shipped 2 backordered)
1.1 BB-2202 8 8 Shipped
Shipping
1.2 BB-2202 2 Awaiting Shipment
Staged Quantities
• Staged quantities are left in the Staging subinventory and can be Ship Confirmed at a
later time. The staged quantity is removed from the delivery being confirmed and
optionally linked to a new delivery number.
• The Sales Order line splits into shipment schedules. One schedule will have the quantity
that was shipped and a status of “Shipped”. The other schedule will have the quantity
that remained Staged with a status of “Picked”.
• Example of an automatic split performed by the shipping process.
Original Sales Order line:
1.1 BB-2002 10 Picked
After Ship Confirm (8 shipped 2 staged)
1.1 BB-2202 8 8 Shipped
1.2 BB-2202 2 Picked
Cycle Count
The Cycle Count capabilities will be available with a future family pack.
• Without Cycle count the Backordered quantity’s reservation is automatically removed
during the Ship Confirm process. This sometimes is not appropriate since it frees up the
inventory to be reserved by another delivery line. By using the Cycle count functionality
you have the option to transfer the reservation on a pick released item to Cycle Count and
simultaneously backorder the delivery line quantities which helps keep available
inventory accurate.
• This would be used if unexpected situations occur while staging orders such as, an item is
damaged or physical inventory is out of balance with the system inventory. By
transferring the reservation to Cycle Count, future reservations cannot be placed against
that quantity.
• If you select “Cycle Count all” the entire reserved quantity for a delivery is transferred to
Cycle Count and the delivery line status is changed to backordered.
• If only specific quantities should be transferred to cycle count you must first enter a
Shipped quantity on the delivery line’s detail form. Then from the Ship Confirm form
select “Ship entered quantities” and in the “Unspecified quantities” LOV select Cycle
Count. The result is that only the shipped quantities are confirmed and the balance of the
delivery lines will be Backordered and the reservations for that quantity will transfer to
Cycle Count. Example of resulting split.
• Original Sales Order line:
1.1 BB-2002 10 Picked
After Ship Confirm (8 shipped 2 backordered)
1.1 BB-2202 8 8 Shipped
1.2 BB-2202 2 Awaiting Shipment
Shipping
Delivery Line Processing Statuses
• Ready to Release
• Released to Warehouse
Booked Order
• Staged
• Backordered
• Confirmed
• In Transit
• Shipped

The Shipping process provides Delivery Line statuses to reflect at what stage in the shipping
process the delivery line is current at.
Ready to Release
The Order Line has been booked and passed to shipping execution. It is now a delivery line
which is eligible for Pick Release.
Release to Warehouse
Pick Release has started but not completed. Either no allocations were created or the
allocations have not been Pick Confirmed.
Staged
Staged occurs after pick confirm to indicate that the subinventory transfer has been executed.
The quantities are now staged and ready for shipping.
Backordered
The delivery line has been pick released but no allocations were created or partial allocations
occurred.
Confirmed
Shipping
This delivery status indicates that the delivery line is either shipped or backordered and the trip
stops are still open.
In transit
This delivery status indicates that the delivery associated with the line is ship confirmed and
the pick up stop is closed.
Shipped
This pick status indicates that the delivery associated with the delivery line has been
confirmed. The Shipping process ends and the sales order line advances to it’s next workflow
activity.
Shipping
Shipping Roles and User Security
Trips Stops Deliveries Lines/LPN

(N) > Shipping > Setup > Grants & Roles Definitions
Shipping Execution is made up of many functional areas such as, Trips, Stops, Deliveries,
Delivery Lines and LPNs (Containers). It is not always appropriate to allow all users to
perform all of these shipping functions.
Using Roles and Grants controls users access to only the options consistent with their role.
This in turn secures shipping data by selectively hiding or displaying view-only fields or
granting full edit mode.
New users must be granted permissions to the shipping areas that are appropriate to their
shipping role.
Shipping
Agenda
Agenda

Shipping
Pick Release Parameters
Controls the Picking Process

Pick Release parameters are Organization specific. Once the organization is entered on the
Release Sales Order form the parameters will default values and establish controls on the
picking batch.
If a Release Rule is used either from the Release Sales Order form or by SRS, the Release
Rule’s defaults are used in place of the Pick Release Parameters.
If Pick Release is launched from the Shipping Transaction’s Action button, the picking
parameters for the shipping organization are used to provide the default values.
Default Values:
• Release Sequence Rule, Pick Slip Grouping Rule, Picking Document Set, Staging
Subinventory, Staging locator.
Controls:
• Whether to print pick slips immediately, or wait until the process is complete.
• Whether grouping delivery lines into Deliveries will be restricted to within an Order or
across Orders.
• Whether to automatically create deliveries as part of the picking process.
Shipping
• Whether to automatically allocate inventory as soon as the mover order is created.
• Whether the Picking process should respect Ship sets and Ship Model Complete sets.
Shipping
Methods to Pick Release
Release Sales Orders

Online

Concurrent

SRS

Online
• When the Release Sales Orders is submitted from the user interface, as “Online”, it
releases one order immediately, eliminating waiting for the order to process through the
Concurrent Manager queue.
• Only one Sales Order at a time is allowed.
• A Release Rule and Document set are required.
Concurrent
• When the Release Sales Orders is submitted via the user interface, as “Concurrent”, it
runs Pick Release in the background, allowing you to run other processes simultaneously.
Standard Report Submission (SRS)
• When a Standard Report Submission (SRS) runs Release Sales Orders it runs in the
background on an automatic, scheduled basis. Using SRS and your Release Rules, you
can run a specific release at the same time every day
Note: The Shipping Transaction’s Tools menu provides a link to the Release Sales Order UI
to allow picking either “Online” or “Concurrent”.
Shipping
Configurable Process
Pick Release Sales Order Results after Pick Release
One Step Picking: Move Order Created

Auto Allocate = Yes Inventory Allocated
Auto Pick Confirm = Yes * Material moved to Stage
Two Step Picking: Move Order Created

Auto Allocate = Yes Inventory Allocated
Auto Pick Confirm = No
Three Step Picking Move Order Created

Auto Allocate = No
Auto Pick Confirm = No
* The picking process is complete

when the material has been moved
to the Staging Subinventory
One-Step Process
Auto Allocate is set to Yes and Auto Pick Confirm is set to Yes.
• When the request is submitted the system automatically creates a Move Order for all
eligible order lines that meet the picking criteria.
• The Release Sequence Rule is used to sequence the orders for inventory allocation.
• Inventory’s Picking Rule is used to detail the Move Order with suggested material.
• Pick Slips are printed and can be reprinted if needed later.
• The subinventory transfer is executing moving the material from it’s source location to
the destination staging subinventory.
• The Order Line status is “Picked”, making it eligible to be Ship Confirmed.
One Step Shipping Scenario:
The One Step process would be for an organization who's shipment profile is one where the
order lines do not require a lot of change. Typically the majority of what is picked is Shipped
in full and the process requires minimal manual intervention. This type of process is also
Shipping
appropriate for shipment profiles that are simple and repetitive. High volume non MSCA non
WMS would probably use a one step process.
Two-Step Process
Auto Allocate is set to Yes and Auto Pick Confirm is set to No.
• When the request is submitted Move Orders are created.
• Inventory is allocated and the Move Order is detailed with source information.
• Pick Slips are printed.
• The Order Line status is still “Awaiting Shipping”.
Manually Pick Confirm from the Transact Move Orders form to complete the picking process.
Two Step Shipping Scenario:
The Two Step process allows some automation by having the system allocate the material but
gives the Material Handler more control by allowing changes to be made at the Pick
Confirmation step. The two step process is typically used by organizations that use mobile
scanning devices where the Material handler scans material as its being picked. Probably not
used by organizations who pick and ship from the desk top due to the number of transactions
necessary to process the shipment via the forms.
Three-Step Process
Auto Allocate is set to No and Auto Pick Confirm is set to No.
• When the request is submitted Move Orders are created.
• The Move Order has not been detailed.
• Pick Slips cannot be printed.
• The Order Line status is still “Awaiting Shipping”.
• Manually allocate inventory from the Transaction Move Orders form
• Manually Pick Confirm from the Transaction Move Orders form.
Three Step Business Scenario:
The Three Step process would be for organizations that have full RF Mobile device
capabilities. The number of transactions required to process a shipment requiring all three steps
would be unreasonable using the desk top but it could be done. It also has the most control and
the most flexibility in the picking process.
Shipping
Auto Create Delivery

ABC To
Print San
Jose Delivery 1
From
Seattle
Group by:
UPS Prepaid • Ship From
• Ship to
• Customer
ABC To New • Carrier
Print York • Freight Terms
From
Seattle Delivery 2
DHL Prepaid
Delivery Lines Deliveries

Deliveries are required to perform Ship Confirm.
Deliveries can be automatically created from the Release Sales Order form during Pick Release
or from the Shipping Transaction’s Action menu any time prior to Ship Confirm.
If Autocreate is not executed, Deliveries can be manually created from the Shipping
Transaction form.
Deliveries Lines
Delivery Lines are Sales Order Lines which have completed all their workflow activities that
are prerequisites to Shipping such as Schedule – Line or Create Supply.
Delivery Grouping Tab
Lines are grouped based on the grouping attributes specified on the your Organization’s
Shipping Parameters – Delivery Grouping Tab. There are two mandatory attributes, Ship From
location and Ship to location. Optionally, group by Customer, Freight Terms, FOB,
Intermediate ship to location, Ship Method, and Carrier.
Shipping

• First Step in Shipping Process
• Line Status: Awaiting Shipping
• Prior Reservations only
• Document set
• Move Orders Created
• Holds (User Hold/Credit Hold)
Selection Criteria
Ship From: Seattle
Ship Date From: Null
Ship Date To: Current Date
Carrier: UPS
Find all the orders that are
scheduled to ship today
(or earlier) from Seattle, that
are shipping UPS.

(N) > Order Management > Shipping > Release Sales Order > Release Sales Order
Releasing Sales Orders for picking is the first step in the shipping process.
• The Shipping activity must be in the Line’s workflow. The line status must be “Awaiting
Shipment” and the item’s attribute Shippable must be selected.
• Some companies have a problem with material shortages or incorrect balances. To
combat these issues it may be necessary for a Scheduler to manually reserve inventory for
specific Sales Order Lines, prior to picking. In order to assure that the picking process
selects only the orders planned by your schedulers, select “Prior Reservations Only” from
the Release Sales Order form.
• The Document Set defines what reports will be printed from your picking process. For
example you may request that Pick Slips and an Exception Report be printed.
• Move Orders are created for every Sales Order Lines that is released.
Holds
• All user defined holds must be removed from the Order or Order Line prior to picking.
Shipping
• Credit Check holds that are placed on an order at booking may automatically be removed
by the picking process if the Customer’s AR balance has been decreased or their credit
limits have been increased.
• The picking process could apply a credit check hold if the order’s Transaction Type has a
value in the Credit Check Rule – Shipping field.
• If a credit hold is manually removed prior to pick release the system will not perform a
credit check, even if the Order Transaction Type has a value in the Credit Check Rule –
Shipping field.
Shipping
Guided Demonstration – Release Sales Orders
This demonstration will cover booking a new order and then releasing the sales order by running
pick release.

(USA)
(N) > Orders, Returns > Sales Orders
1. Enter Business World (1608) as the customer. Accept all header defaults and go to the Line
Items (T).
2. Enter a line with the item AS54888 and a quantity of 5.
3. Select the Book Order (B).
4. Note your sales order number.
5. (N) > Shipping > Release Sales Orders > Release Sales Orders
6. Enter your Order Number in the Order Number field.
7. Click on the Inventory (T).
8. Enter theWarehouse code of (M1) in the Warehouse field.
9. Notice that a Pick Slip Grouping rule has defaulted in based on the warehouse selected.
10. Confirm that the Auto Allocate and Auto Pick Confirm poplists have “Yes” selected.
11. Click on the Shipping (T).
12. Confirm that the Autocreate Delivery Poplist has “Yes” selected and that a Release
Sequence Rule has defaulted in.
13. Click on the Concurrent button to submit your picking criteria.
14. Make note of your Batch number because you will use it to identify your concurrent
requests.
15. View your concurrent request to validate that the process completed normally and to look at
your Pick Slip report.
16. Click on the (M) View > Request > (B) Find to find all requests.
17. Your Batch number will be displayed in the concurrent request parameters field.
Shipping
18. View the output of the Pick Slip report.
19. View the results of the picking process by Querying it in the Sales Order form.
20. Go to the Line Items (T) and scroll to the right to check the Status field of the line and
confirm the status is “Picked”.
21. Use the Action button to view Additional Line Information.
22. Click on the Delivery tab to see the status of your Delivery.
Shipping
Practice - Release Sales Orders
Overview
In this practice you will learn how to release a Sales Order for picking.
• Enter a Sales Order
• Release a Sales Order
• View Picking Documents
• View Delivery information from the Sales Order
Assumptions
Tasks
1. Create and Book a Sales Order with 3 order lines that will be used in the Picking and
Shipping practices. Use Business World (1608) as the customer. Use Items AS54888,
AS72111 and AS18947. Select a quantity of 10 for the first two items. For item AS18947
split the line so that a quantity of 2 has today’s date shipping to New York and that a
quantity of 2 has a date two weeks from today shipping to San Jose. Then Book your sales
order and note the Sales Order number.
2. Pick Release your Sales Order by using the Sales Order number. Select M1 as the
warehouse and accept the default information associated with it. Use the Concurrent (B) to
launch the process.
3. View your concurrent request to validate that the Pick Release was successful.
4. Query your Sales Order number and view the line and delivery information.
Shipping
Solution - Release Sales Orders
Login
Create and Book Sales Order

3. (N) > Orders, Returns > Sales Orders > (T) Order Information
4. Enter all required header fields.
Shipping
− AS54888
6. Add a new line.

− AS72111
7. Add a new line.

− AS18947
8. Click on (B) Actions > Split Line.
Enter: Request Date Ship To Warehouse

Qty
2 Today’s Date New York (OPS) M1
2 2 Weeks from Today San Jose (OPS) M1
9. Click on (B) Split.
If you don’t get the following results notify your instructor.
Shipping
10. Click on (B) Book Order.
− Write your Sales Order #: _______________________________.
11. Return to the Line Items region, (T) Line Items.
12. Validate that all of the order lines are “Awaiting Shipping”.
13. Close Forms.
Pick Release Sales Order

14. (N) > Shipping > Release Sales Orders > Release Sales Orders > (T) Order
15. Order Number: Sales Order # from previous step.
16. Accept default “To Dates”.
17. (T) Inventory
Shipping
18. M1.
• Note: The Shipping parameters for Seattle will default values on to the Release Criteria
form.
19. Validate that “Auto Allocate” and “Auto Pick Confirm” are Yes.
21. Validate that the “Auto Create Delivery” is Yes.
22. Click on (B) Concurrent.
Shipping
• Write your concurrent request ID: ______________________.
Note: This concurrent request will spawn another request id.
• Write your Batch #: _________________________________.
23. Close Forms.
View Concurrent Request
24. (N) > (M) View > Requests > (B) Find (all requests).
25. Look for your Batch # in the Parameters for the two concurrent requests, Pick Selection List
Generation and Pick Slip Report.
26. Put your cursor on the concurrent request “Pick Slip Report” (where your batch # is visible
in the Parameters field).
27. Click on (B) View Output.
28. Close form.
Find Sales Order
29. (N) > Orders, Returns > Order Organizer > (B) Find
30. Find your Sales Order-by-Order Number or Customer PO XX-020.
Shipping
32. From the Summary tab Click on (B) Actions > Additional Order Information > Delivery.
33. If you do not see the above delivery information (“Staged”) let your instructor know.
(Check to make sure your Order is booked before alerting your instructor. If it is not booked
“Book” your order then release it).
34. Close the Additional Order Information window.
35. Click on (B) Lines.
Shipping
Question: Why is line 3.2 still “Awaiting Shipping”?
Answer: Because it’s Scheduled ship date is 2 weeks in the future.
36. Close forms.
Shipping
Agenda
Agenda

Shipping
Shipping Parameters
Shipping Parameters
Controls the Ship Confirmation Process
Shipping Parameters
Shipping parameters are Organization specific. During the Ship Confirm process the shipping
parameters are used to control the confirmation process.
Defaults:
• Delivery Document Set. Packing papers, mailing labels, Bill of Lading, commercial
invoice for international shipments.
• Defer Interface (yes or no). Should Interfaces run immediately or not.
Controls:
• Whether weight and volume is calculated automatically.
• Whether Containers are required.
• Whether printing a pack slip is required.
• Whether a Ship Method is required.
Shipping
Ship Confirm
Ship Confirm
• Last Step in Shipping Process
• Delivery Status: Staged
• Containers
• Calculate Weight & Volume
• UPS
• Add Shipping costs
• Enter quantities
• Set Delivery In-Transit
• Close Trip
• Document set
• Generate the Bill of Lading
Ship Confirm
(N) > Shipping > Shipping Transaction (T) Delivery (B) Action – Ship Confirm
Ship Confirm is the last step in the Shipping Process. Order lines that have been ship
confirmed as “shipped” will be allowed to continue through the workflow to the Invoicing
activity.
A Delivery is required for Ship Confirming. The status of the delivery must be “Staged”.
Ship Confirm is executed from the Shipping Transaction form.
Containers/LPNs
Containers (LPNs) are optional. Pack delivery lines into containers. Pack containers into
vehicles. Using the Shipping Transaction form Automatically pack delivery lines associated to
a delivery into containers. When auto-packing a delivery, the delivery lines are grouped
together by shared attributes such as ship-to location. Auto Pack uses the Container Load
Details record.
Calculate Weight and Volume
Shipping
Whether a company uses containers or not it is often necessary to calculate the weight and
volume of deliveries. The weight and volume entered in the Physical Attributes tab of the
item record is used. Calculate Weight and Volume can be done manually from the Shipping
Transaction form or set up through your Shipping Parameters to be automatic.
Calculate the tar (empty container), gross (container + delivery lines) and net (delivery lines
only) weight for delivery as well as the Percent fill value. A warning will display if the fill is
less then the minimum percent fill specified on the container’s item record.
UPS
Oracle and UPS have entered into a collaboration to fill multiple shipping needs.
Oracle-UPS APIs is a set of programs which integrate shipping information, provided by UPS
Online Tools into Oracle Applications suite to help customers streamline operations in the
shipping process.
Oracle - UPS integration will enable you to:
• Verify shipment address/postal code.
• Inquire about time in transit for ground shipments.
• Get shipping costs for deliveries.
• Track the packages after shipment.
Each of these functions are accessible using the Shipping Transaction’s Action menu.
Set the Profile Option: WSH: Internet Proxy to enable UPS-Oracle API.
Add Shipping Charges
You can assign shipping costs to trips, stops, deliveries, delivery lines, delivery legs, or
containers. Insurance, Duty fees, Special Handing and freight charges are seeded Freight
Charge Types. Shipping Charges can be in any currency. They are not restricted by the Sales
Order currency. The currency will be converted to the currency of the sales order during the
shipping process.
Enter Quantities
Enter the quantities that were shipped, backordered or left in the staging area.
There is a checkbox available for creating a delivery with the split off staged quantities. This
provides the ability to group all staged lines together in a new delivery.
Optionally, Ship-all, Backorder-all, or Cycle Count-all.
Set Delivery in Transit
Set delivery in-transit creates trips and stops for the delivery. Closes Pick-Up stop of the
delivery, but leaves the Drop-off stop open. It sets status of the delivery to in-transit and
initiates Oracle Order Management (OM) and Inventory interfaces.
Close Trip
Closes trip, all open stops. When the delivery’s trip stops have been closed, the delivery
closes.
Document set
The document set associated with Ship Confirm could include Pack Slips, Commercial
Invoice, mailing labels and Bill of Lading.
Bill of Lading
Shipping
Select the create Bill of Lading checkbox to have the system automatically create the
shipment’s Bill of Lading.
Shipping
Guided Demonstration – Ship Confirm Delivery
This demonstration will ship confirm the sales order that you released in the previous demo.

(USA)
(N) > Shipping > Transactions
1. Enter your Order Number on the Query Manager form.
2. Click (B) Find.
3. Only Delivery lines with a Pick status of “Staged” can be ship confirmed.
4. From the Shipping Transaction’s Lines/LPNs tab click (B) Details.
5. Enter a tracking number for each line. Enter quantities in the shipped, backordered and
staged fields. For item AS18947 enter the full quantity in the shipped field then select (M)
Tools > Serial Numbers to assign the required serial numbers
6. Click on the Shipping tab to review the shipping locations and carrier information.
7. Click on the Inventory tab to review material information.
8. Close the details window, click on the Action menu and select Freight Costs to apply freight
costs to the delivery line. If the Freight Costs were spread across all deliveries you would
apply the freight costs to the Delivery. The default cost amount can be updated.
9. Click (T) Delivery and click (B) Detail.
10. Enter a Waybill number that will track all delivery lines within a Delivery.
11. Close the details window, click on the Actions menu and select Ship Confirm.
12. Select Create Bill of Lading if you want the system to generate the data to print a Bill of
Lading report.
13. Leave the Defer Interface UNCHECKED. If you defer the interfaces the shipping process is
not completed until the Trip Stop Interface, Inventory Interface and the OM interface have
been run.
14. Click (B) OK to start the Ship Confirm process.
15. View your concurrent requests to see the reports, which were generated from the Shipping
documents. Query your Sales Order to view the Lines and Delivery information.
Shipping
Practice - Ship Confirm Delivery
Overview
In this practice you will learn how to Ship Confirm a Delivery.
• Use the Shipping Transaction form
• Enter tracking information
• Enter Ship, Backorder and Stage quantities
• Apply freight costs
• Ship Confirm
• View Delivery Results and Order Line Statuses
• View unshipped Delivery Lines
Assumptions
• You have completed the practice to Release Sales Orders and have your Sales Order
Number recorded.
Tasks
1. Find your Sales Order in the Shipping Transactions form. Select the Details (B) for each of
your lines and enter a tracking number and the quantities for shipped, backordered and
staged (Use 5 shipped and 5 backordered for AS54888 and 5 shipped and 5 staged for
AS72111). Supply Serial Numbers when required (Details Required check box). Use the
Actions (B) to enter Freight Costs. Go to the Delivery (T) to select Actions (B) and Ship
Confirm your delivery. Then complete a Find to view Delivery lines that have not shipped.
2. Go to your Sales Order window and query your sales order to review the Delivery
information and Line status to see the results of your shipping process.
Shipping
Solution - Ship Confirm Delivery
Find Delivery to Ship Confirm
3. (N) > Shipping > Transactions
4. Enter your Sales Order #.
Shipping
Question: Why did the system generate 2 Delivery Numbers?
Answer: Because the Shipping Parameters - Delivery Grouping rules requires that all
delivery lines within a Delivery must be shipping from the same warehouse (organization)
and going to the same Ship-to location. In this case Business World requested that
AS54888 and AS72111 ship to San Jose and AS18947 ship to New York so the system
created two Delivery numbers.
6. Click on (B) Detail.

− XX-020-100
− 5
− 5
7. Save.
Shipping
8. Use the keyboard down arrow to display the next delivery line.
− Tracking Number: XX-020-200
− Shipped: 5
− Backordered: 0
− Staged: 5
9. Save.
Shipping
10. Use the keyboard down arrow to display the next delivery line.
− XX-020-300
− 2
11. Notice that the “Details Required” is checked.
Shipping
12. Click on (M) Tools > Serial Numbers.
− Accept default of Serial Number Ranges
− XX-12345
The system will generate the End Serial Number.
13. If the Quantity Entered equals the Quantity Shipped Click on (B) Done.
14. If you were not returned to the Lines/LPNs tab click (B) Done in the Details form.
15. Save.
16. Put your cursor on your first staged delivery.
17. Click on (T) Delivery.
Shipping
18. Select Freight Costs from the Actions menu.
19. Click on (B) Go.
− Handling.
− Accept the defaults.
20. Click on (B) Done.
Shipping
21. Select Ship Confirm from the Actions menu.
23. Validate
− “Ship Entered Quantities” is the Ship Option.
− “Create Delivery for Staged Quantities” is checked.
− “Set Delivery In-Transit” is checked.
− “Close Trip” is checked.
24. .
25. Validate “Defer Interface” is unchecked.
Shipping
• Write your Interface Trip Stop request ___________________________.
28. Put your cursor on your second Delivery number.
29. Click on (T) Delivery.
Shipping
30. Click on (T) Detail.
31. Enter a Waybill number.
Shipping
32. Select Ship Confirm from the Action menu.
34. Validate
− “Ship Entered Quantities” is the Ship Option
− “Create Delivery for Staged Quantities” is checked
− “Set Delivery In-Transit” is checked
− “Close Trip” is checked
35. Validate “Defer Interface” is unchecked.
38. Click on (M) View > Requests > (B) Find (all requests)
Shipping
39. Validate that your concurrent requests completed normally
40. Close forms.
Look at Sales Order Delivery Information
41. (N) > Orders, Returns > Order Organizer > (T) Order Information
− Enter your Sales Order number
− And/or Customer PO XX-020
43. From the Summary tab
44. Click on (B) Actions > Additional Order Information > (T) Deliveries.
Shipping
45. Scroll to the right to see all of the shipping information.
46. Notice that a new Delivery number was automatically created for the Staged quantity.
47. Close the Additional Order Information window.
Notice that the Ship Confirm process automatically split the sales order lines to allow the
shipped quantities to proceed to invoicing.
Also notice that the backordered line has a status of “Awaiting Shipping” not backordered.
Backorder is the status of the delivery line.
50. Close forms.
Shipping
Delivery Lines - Haven't Shipped
51. (N) > Shipping > Transactions
52. Select Line Status of “Not Shipped”.
53. Enter your Sales Order number.
Questions: What does each of the delivery line statuses mean?

− Ready to Release
− Staged
− Backordered
Shipping
Answers:
− “Ready to Release” means this line can be pick released.
− “Staged” means the line has been pick confirmed but not yet ship confirmed.
− “Backordered” means this line has been through the picking process before but was
not ship confirmed. Backordered lines must be pick released again.
55. Close forms.
Shipping
Shipping Documents
Shipping Documents
Shipping Transactions Shipping Document Sets
Reports
• Packing Slip
• Pick Slips • Bill of Lading
• Mailing Labels
• Commercial Invoice
• Backorders
• Vehicle Load Sheets
Detail/Summary
Shipping Documents
Shipping Transaction Reports
• Pick Slip Reports are printed at Pick Release for all delivery lines which were released.
Lines are grouped according to the Pick Slip Grouping Rules.
• Backorder Reports provide information on Orders that have been backordered either
because there wasn’t enough inventory to allocate or as the result of Ship Confirm.
Shipping Document Sets
• Pack Slip lists all the goods being shipped on a delivery. Optionally print the customer’s
Item number rather than your internal number.
• Bill of Lading is usually a pre-printed form. It lists information for all the delivery lines
that were confirmed on a delivery.
• Use the Choose Printer form to route Mailing Labels to a printer that is loaded with
printable labels.
• Commercial Invoice lists all ship confirmed items in a delivery along with their currency
value.
• Detail Vehicle Load Sheet prints the loading sequence of items within a delivery.
Shipping
• Summary Vehicle Load lists all deliveries assigned to a trip.
Shipping
Guided Demonstration – View Shipping Documents
(USA)
(N) > (M) View > Requests
1. View the output of the Commercial Invoice.
2. View the output of the Packing Slip Report.
3. View the output of the Bill of Lading.
Shipping
Shipping Exceptions
Shipping Exceptions
• View Exceptions
• Update Existing
Exceptions
• Enter New Shipping

Exceptions
Shipping Exceptions
(N) > Shipping > Exceptions
In the View Exceptions window, view, log, and update current and past exceptions that have
been logged either manually or automatically.
Use the Find Exceptions window to find selected exceptions or all exceptions. The search
displays the results in a series of tabs in the View Exceptions window: the Exception tab
displays general information about the exception such as the exception name and exception ID.
The other tabs--Trip, Delivery, Container, and Inventory tabs--display additional information
about the exception such as the trip, delivery, container, and inventory associated with the
exception(s). This information helps identify the source of the exception so that the appropriate
handling action can be taken.
Select a single exception to view or update it. Single exceptions display in the Log Exceptions
window.
In both the View Exceptions and Log Exception windows, update details about a selected
exception by choosing the tab that corresponds to the information that needs to updated.
Shipping
Some exceptions are set up to notify automatically if an exception occurs during a shipping
process (such as ship confirm). The notification alerts that an exception has occurred and
displays details to help identify the exception.
Note: Exceptions and processes for exception handling must already be set up before
exceptions can be viewed, logged, or updated. For more information, see: Define Exceptions in
the setup section.
Shipping
Guided Demonstration – View Shipping Exceptions
(USA)
(N) > Shipping > Exceptions
1. Click on the Find icon to display the Find Exceptions window.
2. Select one or more of the following criteria for your query. Select only the criteria for the
exception(s) you want to find:
3. To view all exceptions, leave the search fields blank and choose the Find button.
− Exception Name: The particular name of the exception: for example, Picking Hold
exception.
− Logging Entity: The log-on entity of the exception: shipper, receiver, or
transportation carrier.
− Logged At Location: The location where the exception report was run (logged
location may be different from where the shipping exception occurred).
− Exception Location: The location where the shipping exception occurred.
− Inventory Organization: Exceptions according to a particular inventory
organization.
− Exception Type: Type of exception: delivery, picking, and trip.
− Last Update Date From/To: Identifies the range of update dates for exceptions in
the report.
− Severity: Type of exception severity:
− Low (Low Impact Exception): User gets warning but is able to complete
operation.
− Medium (Medium Impact Exception): Operation cannot be completed without
handling the exception.
− High (High Impact Exception): Operation cannot be completed without
handling the exception.
− Status: Describes the current status of the exception:
− Open: Initial status--not yet associated with an exception name.
− Manual: This exception needs to be processed manually.
− No Action Required: No handling required for this exception.
− Not Handled: This exception could not be handled.
− Departure Date: Exceptions according to the departure date.
− Arrival Date: Exceptions according to the arrival date.
5. Once you have completed your entries, choose the Find button to display the search results
in the View Exceptions window.
Shipping
6. Click the tab that corresponds to the information you want to view or update. For example,
to update trip information for an exception, choose the Trip tab. Choose from the following
tabs:
− Exception tab: Displays general details about the exception ID, such as the
exception ID, exception type, exception name, and a description of the exception.
− Trip tab: Displays information about the trip name, departure date, and arrival date.
− Delivery tab: Displays the delivery name and delivery detail ID about the exception.
− Container tab: Displays the container name, associated with the exception.
− Inventory tab: Displays the inventory information for the exception including the
inventory organization, inventory item, item description, lot number, revision, serial
number, UOM (unit of measure), quantity, subinventory, and locator.
Optionally, to view or update a single exception:
7. Select the exception in the View Exceptions window.
8. Choose (B) Open to display the selected exception in the Log Exception window.
9. Choose the tab to display the details that you want to view or update: Exception tab,
Trip/Delivery/Container tab, or Inventory tab.
10. View or update the available fields in the selected tab.
11. Choose (B) OK to save your changes.
Shipping
Agenda
Agenda

Shipping
Shipping Parameters
Shipping Parameters
General Shipping
Shipping Parameters
Shipping Parameters
(N) > Shipping > Setup > Shipping Parameters (T) General (T) Shipping
General Tab Shipping Transaction Tab
Note: Shipping Execution uses the weight and volume classes to calculate the weight, volume
and percent fill for a shipment.
Weight UOM Class: The values in the LOV are set up in Inventory. Select the weight class
that contains the units of measure used to set up your Items, containers and vehicles physical
attributes.
Volume UOM Class: The values in the LOV are set up in Inventory. Select the volume class
that contains the units of measure used to set up Items, containers and vehicles physical
attributes.
Percent fill basis:There are three choices in the LOV, weight, volume, quantity.
• If weight or volume is chosen, the calculation will be made from the item’s and
container’s physical attributes set up in Inventory.
Shipping
• If quantity is chosen, the calculation is made based on the container load details setup,
which specifies the maximum quantity of a given Item that will fit into a given container.
Shipping Transaction Tab
The Shipping Transaction tab on the Shipping Parameters form sets most of the parameters that
relate to the functionality in the Shipping Transaction form.
Default delivery document Set: Select from the LOV the document set which was designed
for this organization shipping process. It will default during Ship Confirm of the delivery.
Weight/Volume calculation: Choices are automatic or manual.
• If “automatic” is chosen, the weight and volume will be automatically calculated when a
delivery status is set to “Confirmed”.
• If “manual” is chosen., the weight and volume can be calculated using the Shipping
Execution’s Action button.
Enforce Packing in Containers: Choices are Yes or No.
• If “Yes” is chosen, a warning message will appear during ship confirmation if any item in
a delivery is not assigned to a container. This message can be bypassed to complete a
shipment if necessary.
• If “No” is chosen, the system will not check to see that all items in a delivery are
assigned to a container.
Container Inventory Control: Future use.
Pack Slip required checkbox:
• If checked, the system checks to see that a pack slip is printed for the delivery. An error
message will appear if a packing slip is not created.
• If this box is not checked, the system will not check to see that a packing slip has been
generated.
Goods Dispatched Account: This is known as the Cost of Goods Sold Account to use for this
organization and is used if the OM workflow cannot determine one for the sales order issue
transaction.
Freight Class Category Set: Defaults the Freight Class Category set that is used for all items
in that organization.
Commodity Code Category Set: Defaults the Commodity code that is used for all items in
that organization.
Enforce Ship Method checkbox: When Enforce Ship Method is checked, a ship method is
required at ship confirm.
Defer Interface checkbox: When Defer Interface is checked, the Interfaces do not run
immediately at ship confirm. In this case, the Interface concurrent programs would be
scheduled to run at user defined intervals.
Note: Defer Interface and Enforce Ship Method are settings for across all organizations.
Shipping
Pick Release
Shipping Parameters

(N) > Shipping > Setup > Shipping Parameters (T) Pick Release
The Pick Release tab on the Shipping Parameters form sets most of the parameters that relate
to the picking process.
Since Shipping Parameters are organization specific, each of your shipping organizations can
have their own values defined.
Release Sequence Rule: Select a value from the LOV to default in the Release Sales Orders
form. This value can be over written before submitting the release, if applicable.
Pick Slip Grouping Rule: Select a value from the LOV to default in the Release Sales Order
form. It can be over written if necessary.
Print Pick Slip: The LOV has two values, At the End or Immediate.
• If “At the End” is selected, the system will wait until the pick release job is finished
before sending them to a printer.
• If “Immediate” is selected, the system will send a pick slip immediately to the printer.
Note: There is less impact on the system resources if “immediate” is used.
Shipping
Default Pick Release Document Set: Select a value from the LOV to default on the Release
orders form if a Release Rule isn’t used. This value can be over written before submitting the
release.
Autocreate delivery within an order: The choices are Within an Order or Across Orders’.
• If “Within an Order” is chosen, the Autocreate delivery process will create deliveries
from the selected order lines based on the order number and standard delivery grouping
attributes.
• If “Across Order”is chosen, the Autocreate delivery process will create deliveries from
the selected order lines based on the standard delivery only. This could resulting in
grouping orders across order numbers if all the grouping attributes match, i.e.. Same
customer, same ship to, same carrier.
Default Stage Subinventory: Select a value from the LOV to default during the Release Sales
Order process. This value can be over written.
Default Stage Locator: Select a value from the LOV. The is an Optional value.
Number of Pick Slip Lines: Enter the number of rows to print on each Pick Slip.
Auto Allocate checkbox: Select Yes or No. This value will default during the Release Sales
Order process. It can be over written.
• If “Yes” is selected, the system will automatically allocate inventory to the move orders.
• If “No” is selected, the inventory will be allocated manually from the Transaction Move
Order form.
Autocreate Deliveries: Select Yes or No. This value will default during the Release Sales
Order process and can be over written.
• If “Yes” the system will automatically create deliveries for the released order lines.
• If “No” the delivery will need to be created from the Shipping Transaction form.
Enforce Ship Sets & Ship Models checkbox: Shipping Execution enforces ship models and
ship sets during pick release when checkbox is checked.
Shipping
Delivery Grouping
Delivery Grouping
Delivery
Grouping
Shipping Parameters
Delivery Grouping
(N) > Shipping > Setup > Shipping Parameters (T) Delivery Grouping
The Shipping Parameters – Delivery Grouping tab defines the Shipping Organization’s
grouping rules that will be used for grouping Delivery Lines into a Deliveries. Whenever a
Delivery is created either automatically or manually the Delivery Grouping rules must be
adhered to. There are two mandatory grouping attributes:
• Ship From location (Shipping Inventory Organization) and
• Ship to location (Customer’s Ship-to site).
Optionally select
• Customer,
• Freight Terms
• FOB code
• Intermediate ship to location
• Ship Method
• Carrier
Shipping
Null values for Freight terms, FOB code, Ship Method and Carrier will be grouped with orders
that do have values.
Shipping
Shipping Exceptions
Shipping Exceptions
• Define exceptions per

business requirements
• Define handling processes
for exceptions (Workflow)
• Record shipping exceptions
during shipment process
• Initiate exception handling
• View and track exceptions
Shipping Exceptions
(N) > Shipping > Setup > Define Exception
The shipping exceptions feature helps you identify and correct shipping exceptions that violate
the requirements of your operation or that of your carriers and customers.
The shipping exceptions feature gives you the ability to define exceptions and processes for
handling them. You can record exceptions automatically from within Oracle Shipping
Execution, or you can log exceptions manually through the user interface input forms. You
can initiate exception handling, and view and track the exceptions as you manage them to
resolution.
Any automation requires user defined workflow activities.
API’s are provided that allow you, with some custom programming, to use third party
applications to log exceptions.
Seeded Exception are:
• WSH_PICK_BACKORDER
- Backorder occurred at picking time.
Shipping
• WSH_PICK_HOLD
- Hold on the line at picking time.
• WSH_INVALID_PACKING
- Invalid Packing: Item(s) should be unpacked from the container.
• WSH_INVALID_DELIVERY_PLANNING
- Planned delivery has changes
• WSH_INVALID_PACKING_PLANNING
- Invalid Packing Planning: Planned packing has changes.
• WSH_UNPACK_ITEM
- Packing Exception.
• WSH_CUSTOMER_MERGE_CHANGE
- Change to delivery detail due to customer merge.
See the Shipping Technical Reference Manual for further information about the seeded
exceptions.
Shipping
Guided Demonstration – Define Shipping Exceptions
(USA)
(N) > Shipping > Setup > Define Exceptions
1. Enter a unique exception name to identify the exception.
2. Enter a description for the exception definition.
3. Select the type of exception that you want to create: Delivery, Picking, or Trip exception.
4. Select one of the following default severity settings:

− High: The exception must be handled before the task can be completed.
− Medium: The exception must be handled before the task can be completed.
However, the manager can override it so that the task can be completed.
− Low: A warning is given but the task can be completed.
5. Choose one of the following exception handling methods:

− Manual: The exception must be manually corrected and the exception status must
be closed.
− Workflow: A workflow is used for exception notification and exception handling.
− No Action Required: No exception handling method is required.
6. If you select workflow as the exception handling method, enter the workflow item type and
enable the Initiate Workflow box.
7. Save your work.
Shipping

Released Order Lines Pick Slips #
#1
Subiventory: FGI
Group By Delivery
#2
Delivery: 1
#3
Delivery: 2

(N) > Order Management > Shipping > Setup >Picking > Define Pick Slip Grouping Rules
Form
Pick Slip Grouping rules define how Released Order Lines will be grouped on Pick Slips.
Have multiple grouping rules to meet a variety shipping needs. By associating Grouping
Rules with Release Rules, control what will be picked and how they will appear on pick slips.
Group orders by subinventory so that all Orders filled from one subinventoy would be filled
before going to the next subinventory.
Select Delivery as a grouping criteria, all picking lines for the same delivery are grouped
together on a pick slip. If there are multiple deliveries, multiple pick slips are created.
The Pick Methodology of “User Defined” allows group by Order#, Subinventory, Customer,
Ship to, Carrier, Trip Stop, Delivery and Shipment Priority.
The other methodologies are reserved for Oracle’s Warehouse Management System. Also,
there are grouping selections which are only available to WMS, Item number, Locator, Lot,
and Revision. See the WMS User’s Guide for more information.
Shipping
Guided Demonstration – Define Pick Slip Grouping Rules
This demonstration will show how to define a new pick slip grouping rule.

(USA)
(N) > Shipping > Setup > Picking > Define Pick Slip Grouping Rules
1. Select a pick methodology of User Defined:
Note: The options for pick methodology are listed below:
• User Defined: You can modify the Group By clause with this value. Grouping is done
according to the parameters set by the user. A unique pick slip number is generated for
each group. All tasks corresponding to a pick slip number is dispatched to a single user.
• You can only use the following Pick Methodologies when the Oracle Warehouse
Management System (WMS) is installed:
• Order Picking: Grouping is done by order and a unique pick slip number is generated for
each order. The entire order will subsequently be dispatched to a single user.
• Zone Picking: Grouping is done by order and zone. A unique pick slip number is
generated for each group and dispatched.
• Cluster: No grouping of pick tasks is done. The tasks are ordered by locator and
dispatched to the appropriate users.
• Bulk: Grouping by item and locator is done. Tasks are consolidated based on this
grouping and dispatched to the appropriate users.
2. Enter a grouping rule name of XX-Subinventory.
3. Enter a description for the rule.
4. In the Group By region, select Subinventory.

Note: You can use the following grouping criteria--Item, Locator, Lot, and Revision - only
when the Oracle Warehouse Management System (WMS) is installed.
6. Save your work.
Shipping
Practice - Define Pick Slip Grouping Rules
Overview
In this practice you will learn how to create a Pick Slip Grouping Rule.
Assumptions
Tasks
1. Define a new pick slip grouping rule with a User Defined Pick Methodology, the name XX-
Subinventory and select Subinventory to Group By.
Shipping
Solution - Define Pick Slip Grouping Rules
Login
Find Delivery to Ship Confirm
3. (N) > Shipping > Setup > Picking > Define Pick Slip Grouping Rules
− Pick Methodology: User Defined.
− Rule Name: XX-Subinventory.
− Description: Group picking lines by subinventory.
− Group by: Inventory.
Shipping

Released Order Lines Inventory Allocations
Prioritize by:
• Schedule Dates
• Order Number Source Move Orders with:
• Customer’s Open • Subinventory
Invoice value • Locator
• Revision
Ascending or Descending • Lot Number

(N) > Order Management > Shipping > Setup > Picking > Define Release Sequence Rules
Form
Release Sequence Rules are used during the Pick Release process to determine in what order to
allocate material to the Released Sales Order Lines. This can be very important if inventory
balances are less than 100% accurate. If material runs out, the most important orders get filled
first.
Default the appropriate Release Sequence Rule on to the Release Sales Order form by using a
Release Rule.
Assign a numeric value to Order Number, Shipment Priority, Schedule Date and Departure
Date to prioritize the importance of each attribute within the rule. The lower the value the
higher the priority.
Shipping
Specify whether the attribute should be evaluated in an ascending or descending order
Example:
Priority Order Meaning
Shipping Priority: 1 Descending (Highest to Lowest Value)
Schedule date: 2 Ascending (Lowest to Highest Value)
The result would be that the highest priority released order lines with the earliest scheduled
date would have material allocated first.
One the choices for allocating material is the Customer’s Outstanding Invoice Value. It would
allocate inventory to the order which will be generating the most revenue. Customer’s
Outstanding value is mutually exclusive.
Example of how orders are selected if Customer’s Outstanding Invoice Value is used:
• Sales Order 5000 has a total revenue of 1000 currency units and a Backordered quantity
of 15.
• Sales Order 5200 has a total revenue of 1200 currency units with a Backordered quantity
of 2.
• Since the total invoice value of sales order 5200 is greater it would receive the first
available material.
Shipping
Guided Demonstration – Define Release Sequence Rules
This demonstration will show how to define a new release sequence rule.

(USA)
(N) > Shipping > Setup > Picking > Define Release Sequence Rules
1. Enter a name of XX-Oldest First for the rule.
2. Enter a description for the rule.
3. Enter a 2 in the Order priority field and a 1 in the Schedule Date priority field. The lower
the numeric values the higher the priority.
Note: Prioritize entities: Order (Number), Outstanding Invoice Value (Sales Order with the
largest Invoice value), Schedule (Ship) date, Departure (Planned to Ship) date and Shipment
Priority (user defined could be alpha or numeric values). “Outstanding Invoice Value” is
mutually exclusive with “Order”.
4. Select to prioritize entities in an Ascending order (starting with the lowest value and
ascending upward).
5. Save your work.
Shipping
Practice - Define Release Sequence Rules
Overview
In this practice you will learn how to create a Release Sequence rule.
Assumptions
Tasks
1. Create a release sequence rule with a name of XX-Oldest First that will allocate inventory to
the orders with the earilest ship date. If multiple orders have the same ship date, you want
the oldest orders to be filled first. Use an ascending priority scheme.
Shipping
Solution -Define Release Sequence Rules
Login
Create Release Sequence
(N) > Shipping > Setup > Picking > Define Release Sequence Rules
− XX-Oldest First.
3. Allocate material to oldest orders first.

− Order 2 Ascending.
− Schedule Date 1 Ascending.
Shipping
Release Rules
Release Rules
Criteria to Release Orders Release Sales Orders
By Customer
Carrier
Order #
Date Range “Based on Rule”

SRS
54
1
Ship Date From:

Ship Date to: 05-May-2002 “Release Rule Name”
Release Rules
(N) > Order Management > Shipping > Setup >Picking > Define Release Rules Form
Release Rules are used during the pick release process to define the criteria used to determine
which Order Lines will be released for picking. There are two ways you can use Release
Rules:
• On the Release Sales Orders form as the “Based on Rule”. If used in this way it acts as
a defaulting tool. The values that are defaulted can be over written prior to submitting
the request.
• On the Release Sales Orders SRS form as the “Release Rule Name” to dictate the release
criteria which will execute in the background from a concurrent request. A Release Rule
is required to use SRS, standard report submission.
If Carriers are on a regular schedule, such as DHL comes in the morning and UPS comes in
the afternoon. Create Carrier specific Release Rules, then set up several Release Sales Orders
SRS schedules to run the appropriate Release Rule at the appropriate time.
Shipping
Although the Release Rule is the first setup to be used during the Pick Release process it is not
the first rule you would create. Both the Release Sequence Rules and the Pick Slip Grouping
Rules would be set up first since they are used by the Release Rule.
Release Rules can be created based on criteria represented in three different tabs. This will
enable you to create rules that can respond to all of your picking needs.
Order tab - criteria = order type, order number, customer, item, unreleased/backordered/all,
ship set # , scheduled ship dates from and to, request dates from and to.
Note: Enter the current date (today’s date) in the “to” Date fields so that whenever the rule is
used, the system will automatically reset them to the current date.
Shipping tab - criteria = carrier, ship from, shipment priority, release sequence rule, auto
create delivery, shipment priority.
Inventory Tab - criteria = warehouse, pick slip grouping rule, auto allocate, auto pick
confirm.
Warehouse is a required field. Once you enter a warehouse the Shipping Parameters for that
warehouse will be used to default values into the Inventory and Shipping tabs. These values
can be over written, as needed.
Shipping
Guided Demonstration – Define Release Rules
This demonstration will show how to define a new release rule. The Release Rule will use the
Pick Slip Grouping Rule and Release Sequence Rule from previous demonstrations.

(USA)
(N) > Shipping > Setup > Picking > Define Release Rules form > (T) Order
1. Enter a name of XX-Seattle’s Rule for the Release rule.
2. Select All from the Orders LOV.
Note: See the descriptions below:
• All if your rule should release both new and backordered orders.
• Backordered if your rule is to just release orders that have been through the picking
process.
• Unreleased will only release orders that haven’t been through the picking process.
3. Enter the customer Business World (1608) to restrict the releases to orders for just 1
customer.
4. If you enter a Scheduled Ship Date To and Requested Date to as the current date and time
then each time you use this rule to launch Release Sales Orders SRS, the dates will be
updated to the current date.
5. Click on the Shipping (T).
6. Select M1-Seattle as the Ship From location.
7. Select the Release Sequence Rule XX-Oldest First to be used when this rule is executed.
8. Select Yes to Autocreate Deliveries.
9. Select a Document Set of All Pick Release Documents that will print whenever this rule is
executed.
10. Click on the Inventory (T).
11. Enter M1 as theWarehouse. Warehouse is a required field for a Release Rule.
12. Select the Pick Slip Grouping Rule of XX-Subinventory that will be used by the Release
Rule.
Shipping
13. Select Yes to Auto Allocate.
14. Select Yes to Auto Pick Confirm.
15. Save your work.
Shipping
Practice - Define Release Rules
Overview
In this practice you will learn how to create a Release Rule.
Assumptions
Tasks
1. Create a Release Rule with a name of XX-Seattle’s Rule that will select eligible order lines
that are shipping from Seattle’s M1- location. Your rule will pick unreleased orders as well
as backorders.
2. Select your XX-Oldest First Release Sequence Rule and choose to Autocreate Deliveries.
3. Use M1 as the Warehouse, select your XX-Subinventory Pick Slip Grouping Rule and
choose to Auto Allocate and Auto Pick Confirm.
Shipping
Solution - Define Release Rules
Login
Create Release Rule
3. (N) > Shipping > Setup > Picking > Define Release Rules form > (T) Order
− XX-Seattle’s Rule
− All
− Scheduled Ship Date – To: Today’s Date
− To: Today’s Date
4. (T) Shipping
− M1-Seattle
− XX-Oldest First
− Yes
− LOV
Shipping
5. (T) Inventory
− M1
− XX-Subinventory
− Yes
− Yes
6. Save your work.
Shipping
Container Load Details
Container Load Max Preferred

Item Item UOM Quantity Flag
Box4 BB-2002 Ea 4
Pallet Box4 Ea 8

(N) > Shipping > Setup > Container Load Detail
A container load record is required for calculating Percent Fill if the Shipping parameter has
“Quantity” as the fill bases.
Container-item relationships specify the maximum number of load items (Monitor, Keyboard),
that can be packed into a load item (Box, Pallet).
A container can be a load item. For example: pack a Monitor into a box for the convenience of
the customer and then pack the box into a pallet for the convenience of shipping.
Shipping
Guided Demonstration – Define Container Load Details
(USA)
(N) > Shipping > Setup > Container Load Detail
1. Select the Container Item from the List of Values.
2. The Container Item and Container Type display in the window.
3. Select the load item that you want to place in the Container Item.
4. Select a unit of measure.
5. Define the maximum quantity of items that can be placed in the Container Item.
6. Check the Preferred Flag if this is the default container for the load item. Autopack uses the
preferred flag.
7. Continue defining all your Container-Item relationships until completed.
8. Save your work.
Shipping
Ship Methods- Carriers- Relationships
Ship Methods- Carriers- Relationships

Define Freight Carries
Define Ship Methods
Define Relationships
Link a Document set to a
Ship Method
Ship Freight Service Web

Method Org Carrier Level Enabled
UPS-1 DAY AIR M1 UPS Next Day
UPS-2ND DAY AIR M1 UPS 2nd Day
UPS Ground M1 UPS Ground
Carrier-Ship Method Relationship

(N) > Shipping > Setup > Freight > Define Carrier Ship Method
Shipping can respond to a customer’s shipping requests by assigned a shipping method to a
freight carrier.
Establishing a relationship between the Freight Carrier and the Ship Method is a mandatory
step prior to assigning a Ship Method to an order or delivery.
Carrier-Ship Method Relationships are Organization specific allowing you to eliminate carriers
which are not available in certain regions.
Using the Document Categories form it is possible to associate different document sets with
each Carrier-Ship Method combination. For example, you may want to include a Commercial
Invoice only if it is an International shipment.
Three setup steps are required:
• Create Freight Carriers
• Create Ship Method
• Assign Ship Method to a Freight Carrier
Shipping
Define Freight Carriers:
(N) > Shipping > Setup > Freight > Define Freight Carriers
Since Freight Carriers are Organization specific you will be prompted to select an Organization
code prior to entering the Define Freight Carriers form.
Enter the name and description of the carrier along with an account number. This account can
be used when you perform inter-organization transfers and specify freight costs. The account
number is also available to the Account Generator workflow to build the account numbers that
will be used to capture shipping charges that will be passed to AR.
Create Ship Methods:
(N) > Inventory > Setup > Organizations > Shipping Methods
Ship Method can be applied at any time prior to Ship Confirm. Once a delivery has been Ship
Confirmed, the Ship Method becomes a permanent record associated with that shipment and
cannot be changed.
Ship Method is a prerequisite in order to create a Bill of Lading for a delivery.
If the Ship Method is entered on the Sales Order and then changed during the shipping process,
the change is not passed back to the Sales Order.
The Ship Confirm form is your last opportunity to enter or change the Ship Method for a
delivery.
You can put controls on your Ship Method by selecting the checkbox “Enforce Ship Method”
on the Shipping Parameters form. When this feature is checked you are required to enter a ship
method before ship confirm. A error message will be displayed and you will be prevented from
completing your ship confirm process, if there is no Ship Method associated with the delivery.
Companies using public carriers will want to use this option. However, a company with a
private fleet of trucks may elect to NOT enforce ship methods since their own trucks are
always used to transport shipments.
Shipping Method is a lookup code which is available across all organizations.
Lookup codes have an Access Level. In order to be able to add new Shipping Methods the
access level must be set to User or Extensible.
Enter a unique alpha-number code describing the Ship Method you are creating.
The Meaning should be a short descriptive statement, (maximum, 80 characters).
The description field allows the you to clearly state the type of service which will be provided
by this ship method, (maximum, 240 characters).
You can optionally enter a Tag to describe your Ship Method. The tag can be used to
categorize lookup values, such as modes of transport, (rail, truck, marine, air). Maximum, 30
characters.
Carrier-Ship Method Relationship
(N) > Shipping > Setup > Freight > Define Carrier Ship Methods
A Ship Method must be assigned to a Freight Carrier to be available within an organization.
The same Ship Method can be assigned to the same Freight Carrier in multiple organizations.
However, a Ship Method cannot be used more than once within an organization.
Shipping
You can establish grouping rules using a Carrier-Ship Method as a processing criteria. By
selecting Ship Method, you can process orders according to the carrier who will transport the
shipment to better manage your deliveries.
The Service level feature allows you to specify service levels ONLY when the carriers listed in
the Freight column is “UPS”. Standard UPS service levels are seeded in the LOV. This list of
values cannot be changed.
The web enabled checkbox is used by Oracle iStore to determine which ship methods they
want to offer the web user.
Shipping
Guided Demonstration – Define Carrier Ship Methods
(USA)
(N) > Shipping > Setup > Freight > Define Carrier Ship Methods
1. Select a Ship Method from the LOV.
2. Select the Organization that can use this carrier ship method.
3. Select a freight carrier from the LOV.
4. If the carrier is UPS select a Service Level (1 day air, 2 day ground)
− Enable
5. Save your work.
Shipping
Guided Demonstration – Define Freight Carriers
(USA)
(N) > Shipping > Setup > Freight > Define Freight Carriers
1. Enter the freight carrier name as IPS.
2. Enter a description for the carrier.
3. Select a distribution account.
Hint: To generate a list of valid code combinations put your cursor in the first position of
the account field, enter a percent sign (%) then tab out of the field.
4. Optionally enter active beginning and ending dates.
5. Save your work.
Shipping
Freight Cost Types
Freight Cost Types
• Enter an Amount for each Type
Freight - Insurance - Handling - Export Fees - Duty Fees
Freight Cost Types

(N) > Shipping > Setup > Freight > Freight Cost Types
Freight Costs are the actual costs incurred for the movement of goods by a carrier.
Freight Costs include, but are not limited to: freight cost, handling charge, insurance,
import/export license fees and miscellaneous changes, such as, restocking fees, return fees,
miscellaneous fees and charges for late payment. These miscellaneous charges are seeded
Freight Cost type lookup codes which can be linked to a Freight Cost Type record.
You can assign a currency and an “estimated” amount to each Freight Cost record. The
amount is defaulted on to the Ship Confirm form when a freight cost is entered, but can be over
written when appropriate.
Use the “Map to Charge” checkbox if you have created Freight and Special Charge modifiers.
Shipping
Guided Demonstration – Define Freight Cost Types
This demonstration will show how to define a new freight cost type.

(USA)
(N) > Shipping > Setup > Freight > Define Freight Cost Types
1. Enter Special as the name of your new Freight Cost type.
2. Select Handling as the type from the List of Values.
3. Select the currency (USD) that will be associated with this freight cost type.
4. Enter an amount (15) that will be defaulted when this freight cost type is used.
5. Check “Map to Charge” to allow Freight/Special charges modifiers to be defined for this
Freight Cost Type.
6. Save your work.
Shipping
Freight Cost – Freight Charges
Freight Cost – Freight Charges
Shipper’s Costs Customer’s Charges
Freight Costs – Freight Charges

Charges
Freight and Special Charges are defined as the dollar amount applied to the customer invoice
for movement of a shipment to a destination.
Freight and Special Charges may be for the order header or order line.
The user has the ability to apply the charges to the order manually, through order import, an
open API or automatically based on the modifier setup.
Costs
Freight Costs are the actual costs incurred for the movement of goods that the carrier is moving
and is billed to OM Shipping.
Freight Costs include, but are not limited to: freight cost, handling charge, insurance,
import/export license fees and miscellaneous changes, such as, restocking fees, return fees,
miscellaneous fees and charges for late payment. These miscellaneous charges are standard
seeded values. In order to apply these charges to the order, the user must setup a modifier type
of Freight and Special Charges.
Shipping
The main setup difference between freight charges and freight costs is where the user applies
the charges. Shipping captures the freight costs and passes them through to OM; OM uses
them as a basis for applying freight charges to the customer invoice.
For freight charges, the user defines a modifier to setup the attributes in order to apply the
charges to the order.
For freight costs, the user defines a cost type, such as, Freight, and applies the costs at the time
of shipment.
A cut-off point exists for processing charges to a customer invoice. The shipper has the ability
to enter freight and special charges at any time. However, only those costs entered prior to
Ship Confirm will qualify for processing with the customer invoice.
Shipping
• Logical grouping of reports for:

The Pick Release Process
The Ship Confirm Process
• Use seeded Document Sets
• Define new Document Sets

(N) > Shipping > Setup > Document > Document Sets
Specify if the document set you’re creating is for the Pick Release or Ship Confirm process.
Select from the LOV the reports you want to attach to the Document Set.
Use the sequence field to define the printing order for the reports attached to the document set.
There are three seeded document sets that you can use immediately.
• Pick Release Documents
• All Shipping Documents
• Pack Slip Only
Shipping
Guided Demonstration – Define Document Sets
This demonstration will show how to define a new document set and edit an existing document
set.

(USA)
(N) > Shipping > Setup > Documents > Document Sets
1. Enter XX-Docs as the name and New Doc Set as the description for the new document set.
2. Select the usage of Pick Releases for the document set.

− Pick Release: For printing at pick release.
− Ship Confirm: For printing at ship confirm.
Optionally, enter the effective stop date for the document set.
3. The default printing method is parallel. This submits the reports for printing separately, each
with a different request ID. If one of the reports in the document set fails to print, the other
reports still print.
4. In the Sequence field, enter 1 as the number to prioritize the printing order within the
document set.
5. Select the report name of Pick Slip to be included in the document set.
6. Save your work.
To edit document sets
7. Query the All Pick Release Document set.
8. Edit the existing effective dates.
Optionally, add a new document to the set.
9. Save your work.
Shipping
Choose Printers
Choose Printers
Printer 1
Profile Hierarchy
Pick Slips
User
Printer 2
Responsibility
Application
Packing Slips
Site
Printer 3
Mailing Labels
Choose Printers
(N) > Shipping > Setup > Documents > Choose Printers
Assign your shipping documents and reports to specific printers.
Printers can be assigned on multiple levels; User, Responsibility, Applications and Site. If set
at the User level each user could print to a different printer. If set at the Site level anyone
generating the report would be directed to the same printer.
Choose the Document tab to display all documents assigned to a printer, and the printers tab to
display all printers assigned to a document.
Shipping
• Define Roles
Edit
View Only
Disable
• Grant Privileges
Roles and User Security

(N) > Shipping > Setup > Grants & Roles Definitions > Define Roles
Define Roles
Define shipping roles such as Shipping Manager, Shipping Clerk, and Customer Service,
specifying access levels of Edit, View or None (disable) to 60+ actions defined for Trips,
Stops, Deliveries, and Lines.
Grants
(N) > Shipping > Setup > Grants & Roles Definitions > Grants
Next grant access to Shipping Roles for each combination of Role and User.
Warehouse is an optional value. A blank warehouse grants a user the same role across all
organizations. Generally a user should only have a single active grant per warehouse.
Shipping
Guided Demonstration – Define Roles
This demonstration will show how to define a new role to use with shipping.

(USA)
(N) > Shipping > Setups > Grants and Role Definitions > Define Role
1. Enter the name of XX-Shipping Clerk for your Role.
• Enter a description for your role.
2. Click on the Trips (T).
3. Select the access of Edit from the poplist.
4. Uncheck the Plan and Unplan checkboxes to restrict the Trips actions for this role.
5. Click on the Stops (T).
6. Select the access of Edit from the poplist.
7. Click on the Disable Actions (B) to block all the Stops activities for this role.
8. Click on the Deliveries tab.
9. Review the list of actions.
10. Click on the Lines/LPNs tab.
11. Review the list of actions.
12. Save your work.
Shipping
Guided Demonstration – Grant Access to Roles
This demonstration will show how to grant access to roles for users.

(USA)
(N) > Shipping > Setups > Grants and Role Definitions > Grants
1. Select the OMSUPER user from the LOV.
2. Select the XX-Shipping Clerk Role from the LOV.
3. Leave the Org. field blank so that the Grants are applicable to all organizations.
4. Enter a Start date to phase in the Grants.
5. Enter an End Date to phase out a grant.
6. Use the View Role button to see how the role you selected was setup.
Note: Use the Define Role to setup a new Role.
7. Save your work.
Shipping
Practice - Define a Shipping Role
Overview
In this practice you will define a shipping role.
Assumptions
Practice.
Tasks
Define Shipping Role
1. Navigate to the Shipping Execution Role Definition window
• (N) Shipping > Setup > Grants and Role Definitions > Define Roles
− Name: XX-Clerk
− Description: XX Shipping Clerk
2. (T) Trips
3. (B) Disable Actions
4. (T) Stops
6. (T) Deliveries
− Verify
− Data Action: Edit
7. (T) Lines/LPNs
8. Accept all defaults
9. (I) Save
Shipping
Solution - Define a Shipping Role
− Name: XX-Clerk
2. (T) Trips
4. (T) Stops
6. (T) Deliveries
− Verify
7. (T) Lines/LPNs
9. (I) Save
Shipping
Practice - Define Roles
Overview
In this practice you will learn how to create a shipping role that can be used to establish grants
(permissions) to shipping functions.
Assumptions
Tasks
1. Define a new role for your shipping clerks named XX-Shipping Clerk. Disable access to all
functions under Trips and Stops.
Shipping
Solution - Define Roles
Login
Define a Role
(N) > Shipping > Setup > Grants and Role Definitions > Define Roles
3. Name: XX-Clerk.
4. Description: XX Shipping Clerk.
5. Click on (T) Trips.
6. Click on (B) Disable Actions.
Shipping
7. (T) Stops.
8. (B) Disable Actions.
Shipping
9. Click on (T) Deliveries.
10. Validate that Data Access is Edit.
Shipping
12. Click on (T) Lines/LPNs.
13. Validate that the Data Access is Edit.
15. Save.
Shipping
Shipping
Practice - Grant Access to Roles
Overview
In this practice you will learn how to create a shipping role that can be used to establish grants
(permissions) to shipping functions.
Assumptions
Tasks
1. Grant the shipping clerk role to the OMSUPER user for all Organizations.
2. Click on the View Roles button to access the role definition.
Shipping
Solution -Grant Access to Roles
Login
Grant Role
3. (N) > Shipping > Setup > Grants and Role Definitions > Grants
− User OMSUPER
− Role: XX-Clerk.
− Leave Org. blank.
− Accept Start and End Dates.
4. Save.
View Roles
5. Click on the View Roles button to access the role definition.
Shipping
Shipping
Agenda
Agenda

Shipping
Shipping Programs and APIs
• OM Shipping APIs
• Inventory Interface
• Order Management Interface

Order Management API
Order Management provides APIs to Shipping to view lines that are eligible for delivery,
planning, picking and shipping. The view returns all open, booked, shippable lines that are not
interfaced to Shipping. When an order line reaches the “Ship Line” workflow activity, Order
Management calls Shipping APIs to indicate that a line is pick eligible and communicate
changes to the line once it is interfaced to Shipping. When a delivery is ship Confirmed,
Shipping calls OM APIs to communicate the event, triggering the line flow to move forward.
Inventory Interface
The Inventory Interface is run to update inventory with the ship confirmation information.
Inventory balances are decremented and reservations relieved. This program always spawns
the Order Management Interface. It is very important in the process flow that the inventory
Interface complete before the Order management interface to ensure the integrity of the
reservations.
Order Management Interface
This program is run to update order management with the ship confirmation information.
Order line shipped quantities will be updated.
Shipping
Summary
Summary

• Understand what makes up the compete shipping
process Define items and item organizations
• Perform a Pick Release
• Ship Confirm picked orders
• Perform the necessary Shipping Setups
• Understand Shipping’s APIs and Interfaces
Shipping
Shipping
Process Invoices
Chapter 14
Process Invoices
Chapter 14 - Page 1
Process Invoices
Process Invoices
Process Invoices
Chapter 14 - Page 2
Objectives
Objectives
After this module, you should be able to:

• Describe the way processing invoices fits into the
Receivables process
• Enter and complete invoices
• Perform other invoice actions
• Correct invoices
• Identifying deposit transaction types
• Print transactions and statements
• Use event-based management
• Identify XML receivables documents
• Demonstrate promised commitment accounts
Process Invoices
Chapter 14 - Page 3
Agenda
Agenda
• Overview of invoice process

• Entering and completing invoices
• Performing other invoice actions
• Correcting Invoices
• Printing transactions and statements
• Using event-based management
• Identifying XML receivables documents
Process Invoices
Chapter 14 - Page 4
Oracle Receivables Overview
Create Profile
Classes
Enter Create Print Post

Customers Invoices Invoices Receipts
Use
iReceivables
Perform
Collections

Oracle Receivables provides the capability to create all the necessary transactions to correctly
bill customers, record payments, and perform adjustments to customers accounts. These
transactions include: invoices, credit memos, debit memos, guarantees, deposits, bills
receivable, adjustments, and chargebacks. The Oracle Receivables process consist of several
major steps. The Create Invoices and Print Invoices steps will be discussed in this topic.
• Create Profile Classes: Defines several default values for customers with similar credit
terms and invoicing requirements.
• Enter Customers: Creates information for the customer, defines the addresses for the
customer, and the business purpose(s) at each address.
• Create Invoices: Uses AutoInvoice or manually created invoices to bill customers for
goods and services.
• Print Invoices: Produces invoices to mail to customers.
• Use iReceivables: Allows customers and employees to access customer accounts online
to see the status of invoices and receipts and to request credits on line.
• Post Receipts: Permits posting of customer payments as they are received.
Process Invoices
Chapter 14 - Page 5
• Perform Collections: Enables collectors to use informational windows and reports to
perform timely and accurate collection activities.
Process Invoices
Chapter 14 - Page 6
Transactions Overview
Import
transactions Calculate
taxes,
derived
Print
GL accounts,
invoices
update
Create customer
manual balances
transactions
Correct,
if necessary
Transactions can be imported from Oracle Order Management, Projects, Service, Property
Management and non-Oracle systems. Transactions can also be created manually. In the
Transaction process, tax can be calculated, General Ledger accounts created, and customer
balances updated. Invoices can be printed and corrections can be entered, if necessary.
Process Invoices
Chapter 14 - Page 7
Transactions Workbench Windows
• Create
• Adjust
Transactions • Credit
Summary • Complete
• Review
• Copy

(N) > Transactions > Transactions Summary
The Transactions Summary window consists of a workbench, which has buttons that open
windows where the following can be done:
• Create New transactions.
• Create adjustments and credit memos.
• Complete transactions.
• Review transactions and cash applications.
• Copy transactions.
Process Invoices
Chapter 14 - Page 8
Guided Demonstration - Review Transaction Workbench
Responsibility: Receivables, Vision Operations (USA)
(N) > Transactions > Transactions Summary (I) Flashlight (T) More
Enter Ship-To Customer World of Business, Number 1608 in the More tab region of the Find
window.
(B) Find
This is a folder window, which can have fields, added and rearranged.
(M) Folder > Show Field
Explain the Fields across the workbench.

− Source: Specifies automatic or manual batch and invoice numbering and the standard
transaction type.
− Number: Transaction number.
− Bill-To Customer: Name of the Bill-To Customer.
− Class: Type of transaction: Invoice, Debit Memo, Credit Memo, Guarantee, Deposit, or
Chargeback.
− Complete: Shows the transaction is finished.
− Currency: Currency of the transaction.
− Date: Date of transaction.
− GL Date: Determines the period the transaction was recorded in the General Ledger.
The GL Date must be in an Open or Future period at the time the transaction is entered.
− SalesPerson: The SalesPerson on the transaction.
− Terms: Payment terms for the transaction. Receivables calculates the Due Date based on
the payment terms and date of this transaction.
− Type: Type of the Transaction.
Use the buttons on the Workbench to:

− Add new and update existing invoices, commitments, and debit memos.
− Copy invoices, create adjustments and credit memos.
− Complete transactions.
− Reviewing installments and applications.
Process Invoices
Chapter 14 - Page 9
Agenda
Agenda

Process Invoices
Invoice Entry Methods
Invoices from Oracle Order

Management or legacy systems Oracle Receivables
Run
AutoInvoice
Manual Data Entry

Invoices

Enter standard invoices according to your business needs:
• AutoInvoice: Import transactions from Oracle Order Management, other Oracle
applications, or legacy systems.
• Manual Invoices: Enter transactions for invoices that do not originate in a feeder system,
such as invoices for miscellaneous items, services, or freight.
Process Invoices
Creating a Standard Invoice Manually
Enter invoice Enter invoice Enter sales credit

header information lines
Use AutoAccounting Complete

Enter freight lines to create accounts invoice

(N) > Transactions > Transactions
A Standard Invoice is created manually in Oracle Receivables using the following process.
• Enter invoice header information: Identify the customer and type of invoice. Can be
modified to include transaction source.
• Enter invoice lines: Record goods and services to be invoiced.
• Enter sales credit: Optionally, record sales commissions.
• Enter freight lines: Optionally, record freight charges.
• Use AutoAccounting to create accounts: Create the General Ledger distribution accounts
by using preconfigured AutoAccouning Rules.
• Complete Invoice: Finish the process and prepare the invoice for printing.
Process Invoices
Invoice Components
Invoice Components
Invoice Header
Number Source Class Type GL Date
Customer Information
Ship-To Address Bill-To Address
Lines
Item Price Quantity
Invoice Components
Invoices consist of three major components, Invoice Header, Customer Information, and Lines.
Invoice Header
• Number: If the Batch Source specifies automatic invoice numbering then Receivables
assigns a number when you save the transaction or you can enter the number manually.
• Source: Sets default values and AutoInvoice options. Controls numbering. Turns on
Automatic as well as enters the range of numbers for the system to use.
• Class: Provides a dropdown list of classes of transactions, chargeback, credit memo, debit
memo, deposit, guarantee, and invoice.
• Type: Determines whether Receivables amounts are recorded and posted to the General
Ledger.
• GL Date: Sets the General Ledger period for posting of transaction distributions.
Customer Information
• Ship-To Address: (Optional) Ship goods or provide services at this customer address.
Process Invoices
• Bill-To Address: Send the invoice to this customer address.
Lines
• Item: Goods or services provide to the customer.
• Price: Unit price or total amount to be charged the customer.
• Quantity: Amount ordered or one when entering the total amount.
Process Invoices
Guided Demonstration - Define Batch Source
(N) >Setup > Transactions > Sources
1. Enter Name and Description: Demo Source.
2. Enter Type: Imported.

− Use imported batch sources to import transactions into Receivables using
AutoInvoice.
3. Enter the range of Effective Dates: Start date is the current date and do not enter an end date.
4. Check the Automatic Batch Numbering box.
5. Enter Last Number: 999.

− Receivables automatically updates the Last Number fields, so you can review this
batch source later and see the last transaction number that was generated.
6. Select the Copy Document Number to Transaction Number box.

− Check this to use the same value for both the document number and the transaction
number for transactions assigned to this source (Optional).
− If your application uses Gapless document sequences, check this box if you require
gapless transaction numbers. Checking this box ensures that transaction numbers are
generated sequentially and there are no "missing" numbers.
7. Enter Transaction Type: Invoice.
8. (T) AutoInvoice Processing Options.
9. Enter Invalid Tax Rate: Correct.

− Specify how you want AutoInvoice to handle imported transactions that have
Invalid Tax Rates.
− An invalid tax rate is one in which the imported transaction's tax rate does not match
its tax code.
− Enter 'Correct' if you want AutoInvoice to automatically update the tax rate that you
supplied to the one that you defined previously for the tax code.
− Enter 'Reject' if you want AutoInvoice to reject the transaction.
10. Enter Invalid Lines; Create Invoice.

− Specify how you want AutoInvoice to handle imported transactions with Invalid
Lines by entering either 'Reject Invoice' or 'Create Invoice.'
11. Enter GL Date in Closed Period: Adjust.

− Specify how you want AutoInvoice to handle imported transactions that have lines
in the Interface Lines table that are in a closed period.
Process Invoices
− To have AutoInvoice automatically adjust the GL dates to the first GL date of the
next open or future enterable period, enter 'Adjust' in the GL Date in a Closed
Period field.
− Enter 'Reject' to reject these transactions.
12. Enter Grouping Rule: Default.
13. Do not select the Create Clearing check box.

− Use this check box to require that the revenue amount for each transaction line is
equal to the selling price times the quantity specified for that line.
− Use this option to distribute revenue on a transaction in an amount that is not equal
to the transaction line amount.
− If you check this box, AutoInvoice puts any difference between the revenue amount
and the selling price times the quantity for a transaction into the AutoInvoice
Clearing account that you have defined.
− Otherwise, AutoInvoice requires that the revenue amount be equal to the selling
price times the quantity for all of the transactions it is processing.
− Define your clearing account in the Automatic Accounting window.
14. Select the Allow Sales Credit check box.
Indicate whether sales credits can be entered for transactions using this source by checking
or unchecking the Allow Sales Credit box. This option and the Require Salesreps option in
the System Options window determine whether sales credits are optional or required.
15. (T) Customer Information
16. Select ID for all options.

− Indicates whether AutoInvoice validates your customer information for this batch
source using a value or identifier.
− Select ‘None' for no validation.
− Select ‘Value’ to import a record into AutoInvoice tables using its actual name.
− Select ‘ID’ to use its internal identifier.
17. (T) Accounting Information

− How validation occurs for Invoice and Accounting Rule data for this batch source.
− Select either 'Id' or 'Segment' to indicate whether you want AutoInvoice to validate
the identifier or the flexfield segment for this batch source.
19. Check the Derive Date check box.

− To derive the default rule start date and default GL date from the ship date, rule start
date, order date and the default date that is supplied when AutoInvoice is submitted.
− If you use Oracle Inventory and Oracle Order Management for sales order
shipments, you should elect to derive your dates and use the shipment date for your
Process Invoices
transaction general ledger date. In this way you can ensure that you have booked
your revenue and cost to the same accounting period.
− If you do not match revenue and cost in the same period, you violate basic GAAP
principles, and may distort your profit. In addition, you are unable to run a
meaningful Margin Analysis report. This report summarizes your revenue and cost
of goods sold transactions by item and customer order and specifies a transaction
date range. If your transactions are booked in the wrong period, this report reflects
those incorrect transactions.
20. Select Amount

− To indicate how you want AutoInvoice to validate your Revenue Account
Allocation data for this batch source.
21. (T) Other Information (Use the arrow to show more alternative regions).
23. (T) Sales Credits Data Validation.
24. Select ID for Salespersons and Sales Credit Types.
25. Select Amount for Sales Credits

− To validate Sales Credits based on either Amount or Percent.
26. (I) Save.
Process Invoices
Guided Demonstration - Define Line Ordering Rules
(N) > Setup > Transactions > AutoInvoice > Line Ordering Rules
1. Enter Name: Demo Ordering Rule.
2. Enter Description: Demo Ordering Rule (optional).
3. Accept the default start date in the Effective Dates.
4. Enter Order By Sequence: 1

− Enter a higher number to specify a lower priority transaction attribute for this
invoice line ordering rule.
5. Enter Transaction Attribute: Ship Via

− Receivables uses the transaction attributes to determine how AutoInvoice orders
invoice lines when it groups the transactions.
6. Enter Type: Ascending.

− To specify whether you want this transaction attribute to be ordered from least to
greatest (Ascending), or greatest to least (Descending).
7. (I) Save.
Process Invoices
Process Invoices
Transactions Window Tabs
Main
More
Remit To,
Sales Paying
Customer
Notes
Commitment
Credit

The tabs in the Transaction window is where the following information is entered:
• Main: Customer Bill-to, Ship-to, Due Date, Terms, Salesperson and Commitment.
• More: Invoicing Rule, Print Option, Default Tax, Status, Finance Charges, Cross
Reference, Original Transaction, Agreement, Dispute Amount and Date, Special
Instructions, Comments, Document Number, Print Date, and Purchase Order information.
• Remit to, Sales: Remit-to-address, Sold To Customer and Number, and Sales Territory.
• Paying Customer: Paying Customer Number and Location, Payment method, Customer
Bank information, and Expiration Date.
• Notes: Date, Source, and Memo.
• Commitment: Effective Dates, Amount, Item, Memo Line, Description , and Transaction.
(Used with Commitments).
Process Invoices
• Credit: Reason, Customer Reference and Date, Rules and Split Term Method, Credited
Transactions Source, Reference, Amount, GL Date, Number, Bill-to, Balance Due, and
Transaction Date. (Used with Credit Memos).
Process Invoices
Required Transaction Information
• Date
• Source
• Class
• Type
• GL Date
• Bill-to
• Terms
• Remit-to

A number of fields are required during invoice entry. They include the following:
• Date: Transaction date.
• Source: List of values showing where transaction originates. New sources can be added
to the list of values.
• Class: Classifies the transaction as an Invoice, Credit Memo, Debit Memo, Guarantee,
Deposit, or Chargeback.
• Type: Determine whether a transaction updates open receivables, can be posted to your
General Ledger, Receivables calculates tax, and other defaults are entered.
• GL Date: Enters the current date the transaction will use when transferring to the General
Ledger.
• Bill-to: Determines where the final document is sent.
• Terms: Records the payment terms for the transaction.
• Remit-To: Provides your address information for the payment remittance.
Process Invoices
Entering Invoice Dates

• Enter invoice dates in any period. The invoice
date plus the payment terms determine the due
date.
• Enter General Ledger dates in open and future
accounting periods. This date determines when
the journal entry can be created.
Open Future Closed
Available for entry Available for entry Not available

and posting to GL

• An invoice date can be entered any time. This determines the due date only.
• The General Ledger (GL) date determines when the transaction can be transferred to the
General Ledger. The GL date defaults to the transaction date if it is in a open period.
Otherwise, it defaults to the last day of the month of the current open period.
• The Receivables calendar can be opened or closed independently of the General Ledger
calendar. (The General Ledger calendar is shared by Receivables so no separate setup is
required.)
Process Invoices
Transaction Defaults
Transaction Transaction Type

Source
AutoAccounting
Accounting Customer
Rules Record
Transaction defaults save data entry time and reduce errors. There are several sources for these
defaults.
• Transaction Source defaults:
- Transaction type
- Transaction numbering
• Transaction Type defaults:
- Transaction class
- Payment terms (if not set at the customer)
- Accounting
- Credit memos for invoices
- Invoice information for commitments
• AutoAccounting defaults:
- Accounts for transactions
- Validates Accounts
Process Invoices
• Customer Record defaults:
- Ship-to and bill-to address
- Payment terms
- Salesperson
• Accounting Rules default from:
- An item
- A standard memo line
• Statement cycles default from the customer profile class.
Process Invoices
Standard Invoice Line Types
Standard Memo:
Inventory Item Non-Inventory Item
and Services
Free Form:
Special Items
and Services

(N) > Transactions > Transactions > (B) Line Items
There are three types of standard invoice line types that can be used during invoice entry.
• Inventory item: Enter items available in inventory, using a list of values.
• Standard Memo line: Enter non-inventory products or services, such as extended
warranties or maintenance contracts, using a list of values.
• Free Form line: Enter a description.
Process Invoices
Entering Freight Invoices or Lines
AutoAccounting
Invoice
Level
01-110-7340-0000-000
Line
Level
General
Ledger

(N) > Transactions > Transactions > (B) Line Items
If the transaction type assigned to this invoice allows freight charges, enter freight amounts.
Bill freight charges for the entire invoice or for each line:
• Click the Freight button in the Transactions window to enter at invoice level.
• Click the Freight button in the Lines window to enter at lines level.
Note: If you click the freight button at invoice level, then the freight charges apply to the
entire invoice. If click the freight charge at line level, it will apply to that particular line.
AutoAccounting determines the default freight account.
Note: Users can calculate and report tax on freight by creating inventory items with the type of
Freight. AutoAccounting identifies these standard invoice lines with an inventory item type of
Freight and derives your General Ledger accounts based on the rules you have defined for
freight transactions.
Process Invoices
Entering Sales Credits
Require
Salesperson AutoAccounting
Recalculates
Revenue Account
Enter in
Sales Credit Revenue or
window Non Revenue

(N) > Setup > System > System Options
• If the Require Salesperson check box in the Miscellaneous tab of the System Options
window is selected, a salesperson must be assigned to each invoice.
Receivables
(N) > Transactions > Transactions > (B) Sales Credits
• Use the Sales Credits window to allocate sales credit among salespeople, and record both
revenue (credit based on invoice lines) and non-revenue sales credit (credit in excess of
your revenue sales credit such as bonuses or incentives). This information defaults to
line-level sales credits.
Note: The percentage of revenue sales credits must add up to 100%.
• AutoAccounting will recalculate the revenue account assignment.
• Additional non revenue sales credits (above 100%) can be assigned for bonus or
incentive purposes.
Process Invoices
• Allocate different percentages or to different salespeople by line, using the For This Line
region of the Sales Credits window. Access this window by clicking Sales Credits in the
Lines window.
Process Invoices
Completing Transactions
Lines Distributions
= Total
Open or Future
Period
One or More
Lines
When all required information has been entered, click the Complete button to complete (finish)
the invoice.
• Payment schedules and aged receivable amounts are calculated when the Complete
button is selected.
• Completed transactions can be transferred to the General Ledger.
• Only completed transactions can be printed.
The requirements for Completing an invoice:
• An invoice must have at least one line, or at the header level be a freight invoice.
• The General Ledger date of the invoice must be in an open or future period.
• The invoice sign must match the sign of the transaction type.
• The sum of distributions for each line must equal the invoice line amounts.
• If Calculate Tax for transaction type is set to Yes, tax is required on each line.
Process Invoices
Guided Demonstration - Enter Invoice
1. Enter Manual as the Source and Invoice as the Class.
2. Enter Customer Business World.
The San Jose Ship-to and Bill-to sites as well as the payment terms and sales person default
in from the Customer record.
3. (B) Line Items
4. Enter Item.
− Item: CM13139
− Qty: 1
− Unit Price: 100
− Tax Code: Location
5. Close the Line Items window.
6. (B) Complete
Complete creates the accounting entries and prepares the invoice for transfer to General
Ledger.
7. (B) Sales Credits
8. Reduce Howard Sprague’s percentage to 60%
9. Add Barry Lewis with a percentage of 40%
10. Answer Yes in the Decision box asking if you want to recalculate the accounting.
11. Close the Sales Credits window.
12. (M) Tools > View Accounting (B) T Accounts
The View Accounting window shows the accounting for the transaction. The T Accounts
button permits viewing the accounting for the transaction in both the T Accounts format and
the Activity Summary format.
Process Invoices
Practice - Enter and Complete an Invoice
Overview
In this practice you will enter and complete a two-line invoice for Consulting Services for the
customer you created earlier or World of Business.
• Enter Invoice Header information.
• Enter Invoice Line Information.
• Complete the Invoice
Assumptions
• Use Receivables, Vision Operations (USA) or comparable Super User Receivables

responsibility.
Tasks
1. Enter Invoice Header Information with Manual as Source, Invoice as Class and Transaction
type, and your customer you created earlier or World of Business Ship-To and Bill-to
addresses.
2. The customer is being billed for 2 consulting assignments. Enter the following invoice lines
associated with them.
Line # Item # Qty Unit Price Tax
1 CS03755 10 1500 Location Based
2 CS32698 5 1750 Location Based
3. Complete the Invoice.
Process Invoices
Solution - Enter and Complete an Invoice
Enter Invoice Header Information
1. Navigate to the Transactions window.
• (N) > Transactions > Transactions
2. Select Manual as the Source.
3. Select Invoice as Class.
4. Verify that the Transaction Type of Invoice defaults in.
5. Enter your customer or World of Business as the name in the Ship-To and Bill-To name.
The address information may default in. If not, select the San Jose sites for World of
Business or your entered sites for your customer.
Enter Invoice Lines
6. Navigate to the Lines window.
• (N) > Transactions > Transactions (B) Line Items
Process Invoices
7. Enter each line from the table.
8. Click on Tax Button and make sure your “location based tax” was calculated. If not, use
your list of values to select any tax code with a rate.
9. (I) Save.
Complete the Invoice
10. Close the Lines window.
11. (B) Complete.
• Record the Invoice Number: ___________________
Process Invoices
Creating Invoice Batches
Pounds Yen
Invoice Date
Defaults Different Currencies
Payment by
Invoice Batch
Control Total = Actual Total Identifies the Source

(N) > Transactions > Batches
Invoice Batching can be used to create groups of invoices Batching provides checks and
balances not available in a single invoice. Some of the elements of a batch are:
• The batch date defaults to the invoice date.
• If a batch is entered, Oracle Receivables uses the source assigned to the batch for each of
the invoices.
• Batches must match control and actual invoice counts and amounts.
• Actual count and amount are updated as each invoice is entered.
• A batch can contain invoices with different currencies.
• Invoices can be printed by batch.
• Oracle Receivables uses invoice batches to import invoice data.
• Batch information identifies the originating system when importing transactions.
Process Invoices
View Currency Details
View Currency Details
If you use Multiple Reporting Currencies (MRC)

functionality, and if you are using a responsibility
associated with your primary functional currency, then
you can use the View Currency Details window to see,
in a single window, transaction amounts in your
primary functional currency and in all the reporting
sets of books currencies.
If the transaction currency is different from your
primary functional currency, then the amounts are also
displayed in the transaction currency.
View Currency Details Window

The window also displays currency conversion details such as the rate, rate date, and rate type.
For a transaction, the window displays:
• Transaction header information
• Conversion details
• Transaction information. For each transaction, you see the total amount, plus the amounts
of any receipts, credit memos, adjustments, discounts, or bills receivable, converted to
each currency.
For a receipt, the window displays:
• Receipt header information
• Conversion details
• A list of receipt applications. For each application, you see the amount that was applied
to the receipt. You see this amount in each currency. You can drill down from each
invoice to the invoice currency detail.
To open the View Currency Details window, use a responsibility associated with your primary
functional currency. Select a transaction in one of the following windows, then either choose
Process Invoices
the View Currency Details option from the Tools menu, or choose the View Currency Details
icon in the toolbar.
• Transactions
• Transactions Summary
• Balances
• Receipts
• Receipts Summary
Note: You must save a transaction before you can open the View Currency Details window for
it.
Process Invoices
Agenda
Agenda

Process Invoices
Creating Copies of Invoices

January
April
Model
transaction
July

(N )> Transactions > Copy Transactions
Use the Copy Transactions window to create recurring invoices for products and services sold
on a regular basis. A model invoice is used to copy a series of invoices in future periods.
Example:
• Business Needs: A customer is billed for the same service every month.
• Solution: For the first month, enter a new invoice that refers to the billed service. This
becomes the model invoice for the following months.
• The model transaction must be complete.
• Once the model transaction is copied, changes to the model transaction do not affect the
copied transaction.
• The model transaction should be the open or closed transaction that exactly matches the
transaction(s) to recur.
Process Invoices
Using Recurring Rules
Select one of the following rules:

• Annually
• Semi-Annually
• Quarterly
• Bi-Monthly
• Monthly
• Weekly
• Days
• Single Copy

(N) > Transactions > Copy Transactions
Oracle Receivables determines the date and frequency of the copied transactions, using the
rule, first transaction date, and number of times specified.
• You cannot update the recurring schedule after it has been saved.
• Oracle Receivables creates all invoice copies at one time.
• Invoices that are created in unopened periods are created as incomplete.
• If the batch source for the model invoice has automatic transaction numbering turned on,
Oracle Receivables automatically numbers each recurring transaction.
• Each recurring transaction uses the batch source that is assigned to the model transaction.
Select one of the following rules to create the invoices on the specific schedule:
• Annually: Once a year.
• Semi-Annually: Same day every six months.
• Quarterly: Same day every three months.
• Bi-Monthly: Same day every other month.
Process Invoices
• Monthly: Same day every month.
• Weekly: Every seven days.
• Days: Interval based on the number of days entered.
• Single Copy: One copy.
Process Invoices
Guided Demostration - Copy Invoices
(N) > Transactions > Copy Transactions (K) F11
1. Query Invoice 10006861 for Business World using F11, Ctrl F11.
2. Select Monthly as the Rule.
3. Enter 6 in the number of times to create 6 copies.
4. Accept the default GL date.
5. (I) Save.
The six monthly transactions appear in the bottom of the screen.
Process Invoices
Practice - Copy Invoice
Overview
In this practice, you will use World of Business or the customer you defined to create recurring
invoices. Your customer has advised that they will be ordering the same consulting services as
previously ordered on a monthly basis for the next six months.
Copy Invoice from the previous practice.
View report showing new invoices created.
Assumptions

responsibility.
Tasks
1. Copy the Invoice created in the previous practice.
2. Review the report showing the newly created invoices.
Process Invoices
Solution - Copy Invoice
Copy the Invoice
1. Navigate to the Copy Transactions Form.
• (N) Transactions > Copy Transactions
2. Query your invoice from previous practice.
3. Define the recurring schedule with a Rule of Monthly. Number of Months is 6.
4. Accept all other fields as they default.
5. (I) Save.
• Write down invoice numbers. ______________________________________________
Notice how the system automatically numbers all of the new transactions in a sequential
order.
Review Report
6. Go to the concurrent manager and view the completed report.
Process Invoices
• (N) > (M) View > Requests (B) Find (B) View Output
7. If your Concurrent Request completes with a “Warning” or “Error,” (B) View Log and
review. If this occurs, contact your instructor for assistance.
A warning can occur when the future periods are not open or future enterable so not all of
the invoices are completed.
Process Invoices
Creating Invoices with Rules
Creating Invoices with Rules
Fixed or Journal
variable entry
Accounting rule
Advance or
arrears
Invoicing rule
Invoice Revenue
Recognition
program
01.100.200.4500.000.0000
01.110.220.4550.000.0000 Journal
01.220.220.4700.000.0000 entry
AutoAccounting
Creating Invoices for Services

(N) > Transactions > Transactions > (B) Line Items > (B) Rules
Accounting Rules determine the revenue recognition schedules for invoices, while invoicing
rules determine when to recognize revenue for Receivables invoices.Invoicing Rules record the
receivable in the first (Bill in Advance) or last (Bill in Arrear) period of the service.
• You can assign invoicing rules to invoices that you manually enter or import into
Receivables through AutoInvoice.
• Once the invoice is saved, you cannot update an invoicing rule.
Process Invoices
Guided Demonstration - Define Grouping Rules
(N) > Setup > Transactions > AutoInvoice > Grouping Rules
1. Enter Name: Demo Grouping Rule.
2. Enter Description: Demo Grouping Rule (optional).
3. Enter Line Ordering Rule: Demo Ordering Rule (optional).

− The invoice line ordering rule tells AutoInvoice how to order transaction lines
within this grouping rule.
4. Accept the default start date in the Effective Dates.
5. Enter Transaction Class: Invoice.

− If AutoInvoice uses grouping rules and is processing a transaction class that is not
defined for this grouping rule, AutoInvoice will only use the mandatory grouping
transaction attributes.
6. Enter Optional Grouping Characteristics: Sales Order.
Process Invoices
Process Invoices
Accounting Rules
Accounting Rules
Accounting Rules determines when to Recognize

Revenue:
Accounting, Fixed Duration:
Over all periods based on a
percentage or evenly.
Accounting, Variable Duration:

Percentage 1st Period, remaining
amount evenly over remaining
periods.
Defining Accounting Rules

(N) > Setup > Transactions > Accounting Rules
Accounting rules determine when to recognize revenue amounts.
• Use Accounting, Fixed Duration type to recognize revenue over a specific number of
periods. Revenue can be spread evenly or a percentage can be specified for each period.
Default is even distribution.
• Use the Accounting, Variable Duration type to recognize revenue by a percentage for the
first period. The remaining revenue is spread evenly across the number of periods that
you specify during transaction entry.
Process Invoices
Assigning Accounting Rules to Invoice Lines
Assigning Accounting Rules

to Invoice Lines
Accounting, Fixed Duration

Accounting, Variable Duration
# of Accounting
Periods
Recognize Revenue =
1st GL Date
Assigning Accounting Rules to Invoice Lines

(N) > Transactions > Transactions > (B) Line Items > (B) Rules
Each invoice line can have a different accounting rule.
Oracle Receivables uses the First GL Date field in the Transactions window to determine when
to start recognizing revenue.
The number of periods in which revenue is recognized is determined by the value in the
Number of Accounting Periods field in the Transactions window.
• Value defaults from fixed rule.
• Value must be entered for variable rule.
Process Invoices
Using Invoices With Rules
Using Invoices With Rules
Business Need Solution

Enter invoices for services Enter invoices with rules
provided over 12 months either in the Transactions
and recognize revenue as window or through
the service is provided. AutoInvoice.
Bill customers for the Assign invoices a Bill in
invoices before recognizing Advance invoicing rule.
all of the revenue.
Bill customers for invoices Assign invoices a Bill in
after recognizing all of the Arrears invoicing rule.
revenue.
Process Invoices
Example of Billing in Advance

Invoice rule =
Bill in Advance
Dr. Receivables 3000
January Cr. Unearned rev. 3000
Dr. Unearned rev. 1000
Cr. Revenue 1000
Invoice
February
Cr. Revenue 1000

March
Cr. Revenue 1000
Accounting rule = 3-Month

Fixed Duration

Because you are billing the customer for the entire invoice in the first accounting period, the
offset account must be Unearned Revenue. Revenue is considered earned only when services
or support has been provided.
With the Bill in Advance invoicing rule, Oracle Receivables updates the GL (General Ledger)
Date and invoice date of the invoice to the first accounting period for the accounting rule.
For example, if the GL Date of the invoice was originally 01–JAN–02, and revenue was spread
across 3 months, Oracle Receivables uses the GL Date of the invoice to 01–JAN–02.
Process Invoices
Example of Billing in Arrears

Invoice rule =
Bill in Arrears
January Dr. Unbilled receivable 1000

Cr. Revenue 1000
Invoice
Dr. Unbilled receivable 1000
February Cr. Revenue 1000
Dr. Unbilled receivable 1000

Cr. Revenue 1000
March
Dr. Receivable 3000
Cr. Unbilled receivable 3000
Accounting rule = 3-Month
Fixed Duration

Because Billing in Arrears bills the customer for the entire invoice in the last accounting
period, the offset account must be Unbilled Receivables.
With the Bill in Arrears invoicing rule, Oracle Receivables updates the GL Date and invoice
date of the invoice to the last accounting period for the accounting rule.
For example, if the GL Date of the invoice was originally 01–JAN–02, and revenue was spread
across 3 months, Oracle Receivables changes the GL Date and invoice date of the invoice to
01–MAR–02.
Process Invoices
Guided Demonstration - Use Rules
1. Enter Manual as the Source and Invoice as the Class.
2. Enter Customer Business World.
The San Jose Ship-to and Bill-to sites as well as the payment terms and sales person
default in from the Customer record.
3. (T) More
4. Select In Advance in the Invoicing Rule field.
5. (B) Line Items
6. Enter Item.
− Description: 1 Year Support Agreement (from the list of values of Standard Memo
Lines)
− Qty: 1
− Close the Line Items window.
7. (B) Complete
Complete creates the accounting entries and prepares the invoice for the Revenue
Recognition Program and Transfer to General Ledger.
Process Invoices
Deferred Accounting Rules
• You can defer all revenue to an unearned revenue

account by assigning a deferred accounting rule
to an invoice.
• You later recognize this revenue using the
Revenue Accounting feature.
• For use only with the Bill In Advance invoicing
rule.
Deferred Revenue

(N) > Setup > Transactions > Accounting Rules
Use Deferred Accounting Rules to recognize revenue on demand using the Revenue
Accounting feature. Deferred Accounting Rules are enabled by selecting the Deferred Revenue
checkbox on the Invoicing and Accounting Rules window.
Process Invoices
Revenue Recognition Program
Revenue Recognition Program
Deferred Revenue =
Unearned Revenue
Revenue
Recognition
program Bill in Advance =
Unearned Revenue
Bill in Arrears =
Journal Unbilled Receivables
entry
Running the Revenue Recognition Program

(N) > Control > Accounting > Revenue Recognition
• Accounting distributions are created only after you run the Revenue Recognition
program.
- For Bill in Advance, the offset account to Accounts Receivable is Unearned
Revenue.
- For Bill in Arrears, the offset account to Revenue is Unbilled Receivables.
• Accounting distributions are created for all periods when Revenue Recognition runs.
• When you use deferred accounting rules, the Revenue Recognition program creates a
single distribution per line that posts to an unearned revenue GL account.
• Submit the Revenue Recognition program manually through the Run Revenue
Recognition window.
• Submit the Revenue Recognition program automatically when posting to Oracle General
Ledger.
• The program processes revenue by transaction, rather than by accounting period.
Process Invoices
• Only new transactions are selected each time the process is run.
Process Invoices
Guided Demonstration - Run Revenue Recognition
(N) > Control > Accounting > Revenue Recognition > Single Request > (B) OK
1. Select Revenue Recognition from the List of Values in the Name Field.
2. Accept the default parameters.
3. (B) OK
4. (B) Submit
5. Answer No in the Decision Box asking if you want to submit another request.
6. (M) View > Requests (B) Find (B) View Output
The Revenue Recognition Program Execution Report shows the total amount of the
accounting entries created by the Program.
Process Invoices
How Oracle Receivables Uses Statements
How Oracle Receivables

Uses Statements
Payments
Adjustments
Based on Aging Credit Memos

Buckets
Invoices
PAST DUE!!!
PAY NOW!!!
Custom Messages
How Oracle Receivables Uses Statements

(N) > Print Documents > Statements
Statements communicate activity to your customers about invoices, credit memos, debit
memos, payments, on-account credits, chargebacks, deposits, and adjustments.
• Oracle Receivables also prints your customer’s past due balances based on aging buckets.
• You can enhance your statements by printing your own custom messages.
Process Invoices
Making Adjustments Using Revenue Accounting
Making Adjustments Using Revenue

Accounting
Completed
Invoices & Earned
Credit Memos
Unearned
Transfer
Sales
Credits
Add
Non-revenue
Sales Credits
Making Receivables, Vision Operations (USA)

(N) > Transactions > Transactions or (N) Transactions > Credit Transactions
(N) > Control > Accounting > Revenue Accounting
The Revenue Accounting feature lets you adjust revenue.
• Earn or unearned revenue
• You can also adjust sales credits
- Transfer revenue sales credits between Salespersons (maintaining the 100% total)
- Add Non-revenue sales credits
• You can adjust completed invoices and credit memos.
• You can make adjustments at the transaction or line level.
• Receivables uses AutoAccounting to generate the required accounting distributions.
• Use the Revenue Accounting and Sales Credits window to manually perform these
adjustments.
• Use the Revenue Adjustment API to automatically perform these adjustments.
Process Invoices
Setup Details Report
You can use the Setup Details report to review:
• Tax setup • AutoAccounting setup

• Tax defaults and rules • General Ledger period
information
• Transaction and
• Transaction Type details
Customer details
• Remit–to Addresses
• Batch Source details
• Profile option values

You use the Setup Details report to view a wide range of information about the system setup
configuration in Oracle Receivables. Displaying setup information in a single report lets you
easily anticipate and correct possible setup errors when running large processes such as
AutoInvoice.
Report Parameters
Batch Source ID: Choose from the list of values the name of the transaction batch
source for which you want to see system setup details.
Max GL Date: Enter a cutoff general ledger date (DD–MON–YYYY) for the report.
The Setup Details report will contain information about the periods before the date
you enter.
Transaction Type (optional): If you would like to see setup details for one particular
transaction type, choose the type from the list of values. If you do not choose a
transaction type, the Setup Details report will provide setup information for every
transaction type defined in the AutoInvoice interface tables.
Process Invoices
AR: Use Statement Site and Dunning Site Profiles
AR: Use Statement Site and Dunning Site

Profiles
You use this profile option to select whether to pick

profile amounts for statements and dunning from the
customer level or the site level.
The default value is No. If you set this profile option to
Yes, then:
• When you generate statements, Receivables uses
the profile amounts defined at the statement site,
if one exists.
• When you run the Dunning Letter Generate
program, Receivables uses the profile amounts
defined at the dunning site, if one exists.
AR: Use Statement Site and Dunning Site Profiles

The value for this option can be set by the system administrator at the site, application, and
responsibility levels, but cannot be viewed by the user.
Process Invoices
Agenda
Agenda

Process Invoices
Invoice Transaction Flow

Deposit Guarantee Standard invoice
Copy
Print and send invoice to customer
Invalid
Correct invoice Underinvoice Overinvoice
transaction
Void Delete
Process and print
Enter receipt
Generate statement and Interface to Oracle General Ledger

In Oracle Receivables, you can review and correct invoice, debit memo, deposit, guarantee,
credit memo, on-account credit memo, and chargeback information for transactions you enter
manually or import into Receivables using AutoInvoice. This slide shows an overview of the
Invoice process and the four scenarios that can occur when transactions need correcting.
• Correct Invoice
• Underinvoice
• Overinvoice
• Invalid transaction
- Void
- Delete
Process Invoices
Invoice Correction Methods
Invoices
Underinvoicing Overinvoicing Invalid

Update invoice Update invoice Transactions
Debit memo Credit memo Void
Adjustment On-account credit Delete
Adjustment
Refund

Overinvoicing: Occurs when an invoice is generated for an amount that is greater than the
amount actually due. The difference between the amounts can be credited or refunded to the
customer, or the invoice can be updated.
Underinvoicing: Occurs when an invoice is generated for an amount that is less than the
amount actually due. The difference between the amounts can be debited against the customer,
or the invoice can be updated.
Invalid Transactions: Transactions that were created in error.
Process Invoices
Overview of Corrections
Correction Effect on Approval Accounting
Type Invoice Limits Source
Update Changes None Original

Invoice original Transaction
Debit Memo None; None AutoAccounting

new item
Adjustment Activity User Receivables

Activity
Credit Memo New item None Original

applied to Transaction or
original AutoAccounting
(profile option)
On-account None; None AutoAccounting

Credit account only
Update Invoice: Update the line, tax, and freight amounts on the original invoice before it is
posted.
Debit Memo: Enter a new transaction for additional amounts not invoiced on the original
invoice.
Adjustment: Adjust line, tax, and freight amounts on the original invoice.
Credit Memo: Credit a specific invoice.
On-Account Credit: Credit the customer’s account. This credit does not initially apply to a
specific invoice.
iReceivables: Disputes an invoice. Enter a requested credit amount or percentage for lines, tax,
freight, or total. Credit memo request is routed through the approval process.
Note: Debit memos are not directly linked to invoices, but you can enter descriptive references.
Adjustments are linked to invoices.
Process Invoices
Overview of Corrections (Continued)
(Continued)
Correction Usage
Type Tax Restriction Entry
Update Automatic Activity Query in

Invoice Transactions
window
Debit Memo Automatic None Transactions

window
Adjustment Manual or Approval Transactions

write-off limits Summary
Credit Memo Automatic None Transactions

Summary
On-account Automatic None Transactions

Credit window
Process Invoices
Updating Invoices
Updating Invoices
• Update the original invoice before posting to the

General Ledger and before entering activity.
• Update invoice information through the
Transactions window.
• Use the Transactions workbench to update the
Due Date, PO Number, Salesperson, and Remit-To
Address.
• Update the original invoice amount by:
– Updating the quantity and unit price for
each line
– Updating the original freight amount
Updating Invoices
Examples of activity that prevent you from updating an invoice are applying a receipt, credit
memo, or commitment against an invoice, or creating an adjustment for the invoice. If the
system option “Allow Changes to Printed Transaction” check box is cleared, then you cannot
update an invoice that has been printed.
Use the Update Invoice procedure to correct for overinvoicing as well as underinvoicing.
Process Invoices
Creating Debit Memos
Enter in Transaction Window
Import through AutoInvoice
Transaction Type = Debit Memo

Debit memos are like invoices, but they are usually created for additional charges. You can:
• Enter debit memos in the Transactions window.
• Import debit memos through AutoInvoice.
• Enter debit memos in the same way as invoices, but use the Debit Memo transaction type.
Debit memos cannot reference a specific invoice number. Generally, invoices should be used
whenever possible.
Process Invoices
Creating Adjustments
Adjustment
entry
Approval limit
$500
Validation
Approved
process
or Pending
(N) > Transactions > Transactions Summary > (B) Adjust
When you create an adjustment Receivables automatically verifies that it is within your
adjustment approval limits.
• If within your assigned approval limit for the currency of that item, Receivables updates
your customer’s balance to reflect the adjustment.
• If outside your approval limits, Oracle Receivables creates a pending adjustment with a
status of Pending Approval, which will need to be approved by a higher level employee
with the proper approval limit.
Process Invoices
Guided Demonstration - Enter an Adjustment
(N) > Setup > Transactions > Adjustment Limits
1. Enter the following information:

− Username: Operations
− Document Type: Credit Memo
− Reason: Discount
− Currency: USD
− From Amount: -999
− To Amount: 999
2. (I) Save.
3. (N) > Transactions > Transactions Summary > (I) Flashlight
4. Find Transaction Number 10007249 or 10007284.
5. (B) Adjust

− Activity: Line Adjustment
− Type: Line
− Amount: -100
7. (I) Save.
Process Invoices
Applying Different Types of Credits
Applied credit memo
Credit Invoice
memo
On-account credit
Credit Customer
memo account

(N) > Transactions > Credit Transactions
• Respond to overinvoicing with credit memos and on-account credits.
• Credit memos affect specific invoices; on-account credits affect customer balances.
• Credit memos are entered in the Credit Transactions window; On-account credits are
entered in the Transactions window with the transaction class of Credit Memo.
• Credit memos cannot be unapplied or reversed from the invoice once they have been
created; On-account credits can be moved.
Process Invoices
Credit Memo Options
Credit Memo Options
• Invoice Lines: Credit specific invoice lines.

• Tax only: Enter 100% in the Tax % field, or
remaining tax amount in the Amount field.
• Freight only: Enter amount in the Freight field, or
credit specific lines in the Freight window.
• Invoice, Tax and Freight lines: Enter amount or %
in the Transaction Amounts region of the Credit
Memo window.
Lines
Tax
Freight
Credit Memo Options

• Use the Credit Balance button to credit 100% of the remaining invoice value.
• Use the Credit Lines button to credit a specific line on the invoice with the related tax if
applicable.
• If you enter credits in the Transaction Amounts region, the tax, if applicable to that
invoice, needs to be adjusted separately. Receivables does not calculate the tax in relation
to the lines.
• Enter credit memos for a specific invoice or invoice line.
• You can create a credit memo against:
- Open invoices.
- Closed invoices.
• Batch credit memos to help identify data entry errors.
• Reference invoices with no remaining balances to refer credits back to the original
invoices.
Process Invoices
• Use the Receipts window to apply these credits to other items.
• The transaction type of the invoice to be credited must allow over application in case of a
credit memo created for an invoice with an outstanding balance of zero.
• Select an existing invoice in the Credit Transaction field in order to create the credit
memo.
Process Invoices
Guided Demonstration - Enter a Credit Memo
1. Enter Transaction Number 10007145 or 10007249.
2. Enter 50% in the Line and Tax fields of the Credit Memo Region.
3. (I) Save
4. (B) Complete
5. (B) Credit Lines to review the effect on the invoice.
Process Invoices
Practice - Create a Credit Memo
Overview
In this practice, you will enter a credit memo. The invoice entered for consulting services in the
first practice should have included a 5% discount.
• Create a credit memo.
• View the credit lines.
Assumptions

responsibility.
Tasks
1. Create a credit memo.
2. View the credit lines and completed the credit memo.
Process Invoices
Solution - Create a Credit Memo
Create Credit Memo
1. Navigate to the Credit Transactions window.
• (N) Transactions > Credit Transactions
2. Find the first invoice number you entered for consulting services. (B) Find.
3. Accept defaults that appear.
4. Source: Manual
The system will auto-generate the credit memo number.
5. Enter Reason: Discount.
6. If the GL date doesn’t default, enter today’s date.
• Notice Balance Due on the Invoice.
7. In the Line % Field in the Credit Memo Region enter 5.
8. (I) Save
• Credit Memo Number: _________________________________________
Process Invoices
View Credit Lines
9. (B) Credit Lines
10. Review the credit memo lines to see how the system has pro-rated the credit amount.
Note: 5% of each line item is calculated, not of the unit price or tax.
11. Close the Lines window.
12. Complete the Credit Memo.
Process Invoices
Process Invoices
On-Account Credit Options
• Invoice Lines: Use free-form, standard memo, or

inventory lines in the Transactions window.
• Tax only: Select a standard tax memo line, or enter
a dummy credit memo line in the Credit Memo
Lines region.
• Freight only: Select a standard memo line.
• Invoice, tax, and freight lines: Enter line-level
credits.
Credit Customer
Memo Account

To apply a credit to a customer’s account rather than to an individual invoice:
• Enter on-account credits in the Transactions window.
• Select transaction class Credit Memo.
Process Invoices
Guided Demonstration - Enter On-Account Credit
1. Enter the following:

− Source: Manual.
− Class: Credit Memo.
− Type: On-Account Credit
− Name: Business World
The San Jose Ship-to and Bill-to sites as well as the payment terms and sales person default
in from the Customer record.
2. (B) Line Items
3. Enter Item.
− Description: Rebate
− Qty: 1
− Unit Price: -100
4. Close the Line Items window.
5. (B) Complete.
6. (M) Tools > View Accounting
Review the General Ledger accounting entries.
Process Invoices
Reversing Sales Credits
• Automatically
• Proportionally
• Change with AR: Allow Update of Existing Sales
Credit Profile Option
SALES CREDIT
Sales Person

• When crediting any part of an invoice, Oracle Receivables automatically reverses sales
credits assigned to the appropriate salespeople.
• Partial credits against sales credits default proportionately, but can be updated as long as
the sum of sales credits for the line equals the original line credit amount.
• The AR: Allow Update of Existing Sales Credits profile option determines whether a user
can update existing sales credits or if additional sales credit records need to be created to
maintain an audit trail.
Process Invoices
Creating Refunds
Creating Refunds
• Create a credit memo

• Create a debit memo
• Set up customer as a supplier
• Use the debit memo to enter an invoice in Oracle
Payables
• Create a payment and send to customer
Creating Refunds
You must create a refund when the customer has already paid an invoice and requests money
back instead of a credit.
Oracle Receivables does not create checks and therefore does not complete the refund process.
If Oracle Payables has been installed, you can use the features of the two systems to process
refunds.
You would use a clearing account to offset the Receivables account in Receivables and the
Payables account in Payables.
If you do not have Payables installed, create a credit memo/debit memo for accounting, and
then send to your check writing system.
Example: A refund for a customer who returns goods and wants a refund for $200.
• Enter a credit memo in Oracle Receivables to reduce revenue and create an amount due
to the customer.
- Debit Revenue 200 / Credit Receivables 200
• Enter a debit memo in Oracle Receivables to transfer the amount owed to the customer to
a clearing account.
Process Invoices
- Debit Receivables 200 / Credit Clearing 200
• Enter an invoice in Oracle Payables to clear the clearing account and create an accounts
payable for the customer.
- Debit Clearing 200 / Credit Payables 200
• Issue a check in Oracle Payables to send the refund to the customer.
- Debit Payables 200 / Credit Cash 200
Instructor Note: You can also use T-accounts to illustrate how to account for a refund.
Process Invoices
Voiding Transactions
Void invoices, credit memos, and on-account credits

in response to invalid transactions.
Business Need Solution
Track invoices that are Update the invoice status to

incorrectly entered to determine Incomplete and assign a
whether this is a data entry transaction type that has the
problem or if customers are Open Receivable and Post To GL
providing incorrect information. check boxes cleared.
Delete incomplete transactions

Delete transactions that are from the Transactions Summary
incorrectly entered. window if the Allow Invoice
Deletion check box in the System
Options window is selected.
If there is no activity against a transaction, and if it has not been posted to the General Ledger
(GL), you can void the transaction.
Changing Complete Status by clearing the Complete check box of the transaction.
Updating Transaction Type:
• Set up a transaction type with the Open Receivables and Post to GL check boxes cleared.
• Assign this transaction type to the transaction that you want to void and complete the
transaction.
Deleting Incomplete Transactions
• If the system option Allow Invoice Deletion check box is selected, you can delete
incomplete transactions from Oracle Receivables.
• Select Delete Record from the Edit menu or Delete Record icon form the toolbar to delete
invoices from the Transactions Summary window. Save the record once you have deleted
the transaction.
Process Invoices
Agenda
Agenda

Process Invoices
Transaction Types
Transaction Types
You use transaction types to define the accounting for

the debit memos, credit memos, on–account credits,
chargebacks, commitments, invoices, and bills
receivable you create in Receivables.
Transaction types also determine whether your
transaction entries update your customers’ balances
and whether Receivables posts these transactions to
your general ledger.
Process Invoices
Define Transaction Types
You should define your transaction types in the

following order:
• credit memo transaction types
• invoice, debit memo, chargeback transaction
types
• bills receivable transaction types
• commitment transaction types
You must define your invoice transaction types before
you define your commitment types.

Suggestion: To be able to void a debit memo, credit memo, on–account credit or invoice,
define a Void transaction type with ’Open Receivables’ and ’Post to GL’ set to No. Then, as
long as there is no activity against the transaction and it has not been posted to your general
ledger, you can make it invalid by simply changing the transaction type to ’Void’.
Process Invoices
Deposit Transaction Type
If your transaction type’s class is Deposit, then

complete these fields in the Deposit tabbed region of
the Transaction Type window:
• In the Allocation Basis field, indicate how you
want to apply the balance of deposits with this
transaction type to transactions.
– You can select Lines Only to apply deposits to
invoice lines only. Or, you can select Lines, Tax and
Freight to include tax and freight amounts on
invoices when applying deposits to transactions.
• Enter a Receivable Account for deposits with this
transaction type.
• Enter an Offset Account for deposits with this
transaction type.

If you set the AR: Deposit Offset Account Source profile option to Transaction Type, then
Receivables uses the Offset Account that you specify here to derive the offset account for
deposits. Otherwise, Receivables uses AutoAccounting to derive the deposit’s offset account.
Process Invoices
Agenda
Agenda

Process Invoices
Reports
Reports
• Incomplete Invoices Report: A list of incomplete

invoices.
• Invoice Exception Report: Review transactions
where the Open Receivables check box is cleared
and the customer balanced have not be updated.
Reports
(N) > Reports > Listing > (B) Single Request > (B) OK for the Incomplete Invoice Report.
(N) > Reports > Accounting > (B) Single Request > (B) OK for the Invoice Exception Report.
Process Invoices
Printing Transactions
You can print the following documents to send to

customers:
• Invoices
• Credit memos
• Debit memos
• Deposits
• Guarantees
• Chargebacks
• Adjustments
• Bills Receivable
(N) > Print Documents > Invoices > Single Request > (B) OK
• Transaction documents, such as invoices and credit memos must be printed for
distribution to customers.
• Depending on a specific statement schedule, statements and consolidated billing invoices
are generated for distribution to customers.
• Transactions can be printed in batches or a specific range.
• Print the details of each tax line by setting a tax printing option, Itemize By Line, on the
customer’s profile class.
• Optionally, you can elect not to print transactions.
Process Invoices
Process for Printing Transactions
Preview First Then Print
Single Invoice Invoice Batch Transaction Type

Preview First
• Submit the Invoice Print Preview Report to see a list of transactions that will be printed.
• Select a list of transactions by specifying values for the report parameters.
Then Print
• Print transactions by batch.
• Print transactions that have not been printed.
• Specify a range of transactions to print.
• Specify other parameters, such as Transaction type, class, or customer.
Note: Oracle Receivables automatically prints the tax registration number defined in the
system options on customer invoices. Oracle Receivables uses the tax printing option specified
for the customer’s profile class, if entered. Otherwise, Oracle Receivables uses the option
specified for the Invoice Printing System Option.
Process Invoices
Guided Demonstration - Print Transactions
(N) > Print Documents > Invoices > Single Request (B) OK
1. Select Name: Invoice Print New Invoices.
2. Accept the default Parameters.
3. (B) OK > (B) Submit
4. (M) View > Requests > (B) Find > (B) View Output
The output shows the invoices that are printed.
Process Invoices
Practice - Print Transactions
Overview
In this practic you will print the invoice from the first practice.
• Print invoices.
• View printed invoices.
Assumptions

responsibility.
Tasks
1. Print the invoice from the first practice.
2. View the printed invoice.
Process Invoices
Solution - Print Transactions
Print the Invoice
1. Navigation to the Print Invoices window.
• (N) > Print Documents > Invoices > Single Request > (B) OK
2. Enter Name: Select- Invoice Print, Selected Invoices.
3. Enter Parameters: Transaction number from first practice.
4. (B) OK > (B) Submit > (B) No
View Printed Invoice
5. Navigate to the Requests window.
• (N) > (M) View > Requests > (B) Find > (B) View Output
6. View invoice.
Process Invoices
Process Invoices
Using Consolidated Billing
Site C
Site A
Site B
Consolidated Billing Invoice

(N) > Print Documents > Consolidated Billing Invoices > Single Request > (B) OK
Use the Consolidated Billing Invoice program to print a single monthly invoice that includes
all of your customer’s transactions for that period.
• Customers are flagged to receive consolidated billing invoices through their customer
profile class.
• The invoice format can be detail or summary. Both the detail and summary format
presents invoice totals. The detail format lists all line items.
Note: If Sales Orders with different payment terms are imported through the AutoInvoice
Interface from Order Management, the invoice that are created still appear on the Consolidated
Billing Statement.
Process Invoices
Guided Demonstration - Run Consolidated Billing
(N) > Setup > Transactions > Payment Terms
1. Enter the Name: Last Day Month.
2. Enter Description: Due on Last Day of the Month.
3. Select the Last Day of the Month check box.
4. Enter Terms: 100 percent due in 30 days
5. (I) Save.
6. (N) > Customers > Standard
7. Query Customer: American Telegraph and Telephone
8. Select Bill-to site: 32 Ave of the Americas
9. (B) Open (T) Details.
10. Enter payment terms: Last Day Month payment term.
11. (N) > Print Documents > Consolidated Billing Invoices > Single Request > (B) OK
12. Select Print New Consolidated Billing Invoices
13. Enter parameters:

− Cutoff Date: 01-FEB-2001.
Prints all the invoices for the customers for January. Do not use 31-Jan-2001 because the
program would not have included the January 31st invoices.
− Last Day of Month?: Yes.
Process Invoices
Practice - Print Consolidated Billing
Overview
In this practice, you will create and use a payment term using the last day of the month option for
consolidated billing invoices.
• Create a payment term with last day of the month option.
• Assign your payment term to a customer.
Assumptions

responsibility.
Tasks
1. Create a payment term with last day of the month option.
2. Assign your payment term to your customer
Process Invoices
Solution - Print Consolidated Billing
Create a payment term
1. Navigate to the Payment Terms window:
• (N) Setup > Transactions > Payment Terms
2. Enter the Name and Description of <XX> Last Day.
3. Select the Last Day of the Month check box.
4. Enter First Installment: Includes Tax and Freight
5. Enter the terms 100 percent due to 30 days.
6. (I) Save.
Assign Payment Term
7. Navigate to the Customers window.
• (N) Customers > Standard
8. Find your customer by entering the name in the name field and (B) Find.
Process Invoices
9. Select the Bill To site.
10. Select the Business Purpose tab and (B) Open.
11. Select your payment term <XX> Last Day for the list of values in the Payment Terms field.
12. (I) Save.
Process Invoices
Guided Demonstration - Correct Errors
(N) > Control > AutoInvoice > Interface Exceptions
1. Query using Control F11 to see all the invalid records.
2. Select the third error on this window (or other error to correct).
− Note the error message about Invalid Transaction Type and column reference
(CUST_TRX_TYPE_ID).
3. (B) Details.
In the Interface Lines window, are several buttons, Accounting, Sales Credit, Freight, and
Tax. By selecting these buttons, the related fields where corrections can be made, are
displayed or add the error field to the Interface Lines window.
4. Place your cursor in any fields to the right of the Interface Line Id.
− The Interface Line Id is not part of the folder.
5. (M) Folder > Show Field
6. Add the (CUST_TRX_TYPE_ID) column to correct the seeded line (or proper column for
other errors.)
7. Select 1361 WF Invoice from the list of values (or proper items if correcting other errors.)
8. (I) Save.
9. (B) Errors
− To check for other errors for this particular record.
− All errors for each record must be corrected.
− Rerun AutoInvoice Program to imported correct lines.
Process Invoices
Practice - Correct Errors
Overview
In this practice, you will query and correct AutoInvoice errors using the new AutoInvoice
Exception Handling feature.
• Query records in the Interface Exceptions window.
• Correct the error in the Interface Lines window.
• Run AutoInvoice.
• View AutoInvoice Report.
Assumptions

responsibility.
Tasks
1. Query records in the Interface Exceptions window.
2. Correct the error in the Interface Lines window.
3. Run AutoInvoice.
4. View AutoInvoice Report.
Process Invoices
Solution - Correct Errors
Query Records in the Interface Exceptions
1. Navigate to the Interface Exceptions window:
• (N) Control > AutoInvoice > Interface Exceptions
2. Run the query: (K) Ctrl + F11.
3. View the various errors.
4. Select a record and view the error message in the Message field.
Correct the Error
5. Navigate to the Interface Lines window.
6. (B) Details.
7. Place cursor into the LINE_TYPE field and select Show Field from the Folder menu to
select a corresponding field name. If for example, you are correcting the payment terms; you
would select TERM_NAME from the list.
8. Select a valid value from the list of values.

Process Invoices
9. (B) Error.
Verify that the line has not more errors. If it does, correct those errors also.
Write down the Sale Order Number: __________________________
10. Save your work.
Run AutoInvoice
11. Navigate to the Run AutoInvoice window.
• (N) Interfaces > AutoInvoice > Single Request > (B) OK
12. Select: AutoInvoice Master Program.
13. Enter parameters:

− Invoice Source: Order Entry
− Default Date: Today’s Date
14. Your Sales Order Number (so each person gets a chance to see results.)
15. (B) OK > (B) Submit

− The other option would be to schedule this process to run on a regular basis.
Process Invoices
View AutoInvoice Report
Navigate to the Requests window.
• (M) View > Requests > (B) Find > (B) View Output
The top portion of the AutoInvoice Validation Report is a summary of the AutoInvoice
Exception Errors for quick reference. This report helps determine what errors need to be
corrected and can be used a tool to research the errors before entering the Interface
Exception window.
Process Invoices
Process Invoices
Agenda
Agenda

Process Invoices
Event-Based Revenue Management
Event-Based Revenue Management
The Revenue Management Engine automates the

timing of revenue recognition for the invoices
imported via AutoInvoice.
If you use event–based revenue management, then
Receivables evaluates invoices when they are
imported into your system, and decides whether to
immediately recognize revenue, or temporarily defer
revenue to an unearned revenue account.
Event Based Revenue Management

When first evaluating an invoice for revenue recognition or deferral, Receivables uses
information from Credit Management to determine a customer’s creditworthiness, and uses
contract details from your contracts solution to determine if any nonstandard contract
contingencies exist.
Process Invoices
Automated Process
Automated Process
The automated process occurs as follows:

• Receivables evaluates an invoice when it is first
imported.
– If revenue must be deferred, then Receivables does
so and records the reason for the deferral.
• Receivables then waits for an event that can
trigger revenue recognition. When such an event
occurs, Receivables automatically recognizes the
appropriate amount of unearned revenue on the
invoice.
• Events that can trigger revenue recognition fall
into two categories:
– Receipt application
– Expiration of contract contingencies
Automated Revenue Management Process

This automated revenue management process helps you to comply with the strict revenue
recognition requirements mandated by US GAAP and International Accounting Standards.
Note: Automated revenue recognition is possible only for invoices with a batch source type of
AutoInvoice. This process is not available for transactions that you manually create via the
Transactions workbench or Copy Transactions window.
Additionally, even if you enable this automated revenue recognition process, you can always
use the Actions Wizard to manually adjust revenue.
Process Invoices
Evaluating Invoices for Event–Based Revenue Management
Evaluating Invoices for Event–Based

Revenue Management
The Revenue Management Engine controls the

process of automatically analyzing collectibility and
then making revenue recognition decisions for your
imported invoices.
If you enable Event–Based Revenue Management, then
the Revenue Management Engine decides whether to
initially distribute revenue for your imported invoices
to an earned or unearned revenue account.
Evaluating Invoices for Event–Based Revenue Management

Once this decision is made, AutoAccounting creates the actual accounting distributions, either
via AutoInvoice (for invoices without rules) or via the Revenue Recognition program (for
invoices with rules). The Revenue Management Engine does not analyze collectibility for
invoices that are assigned deferred accounting rules. To recognize revenue for an invoice with
a deferred accounting rule, use the Actions Wizard.
Note: The timing of revenue recognition does not impact the timing of recognition of taxes,
freight, and finance charges. Recognition of taxes, freight, and finance charges occurs when the
receivable is created.
Suggestion: You can query an invoice in the Transactions workbench at any time to review the
invoice’s accounting distributions, or run the Deferred Revenue Audit Trail Report.
Process Invoices
Collectibility Requirements for Revenue Recognition
Collectibility Requirements for

Revenue Recognition
The Revenue Management Engine considers the

following collectibility requirements when evaluating
your imported invoices:
• Customer creditworthiness
• Absence of the following contract contingencies:
– Extended payments terms
– Nonstandard refund policy
– Fiscal funding, cancellation, forfeiture, and
acceptance clauses
Collectibility Requirements for Revenue Recognition

If an invoice satisfies these requirements, then the Revenue Management Engine immediately
recognizes revenue (for invoices without rules) or recognizes revenue according to the initially
assigned accounting rules (for invoices with rules).
If an invoice does not satisfy, or only partially satisfies, these requirements, then the Revenue
Management Engine immediately defers revenue.
The extent of the revenue deferral, and subsequent timing of revenue recognition, depends on
whether the unmet collectibility requirements are related to either the header or line level of an
invoice.
Process Invoices
How Collectibility Requirements Relate to Invoices
How Collectibility Requirements

Relate to Invoices
The following table indicates the invoice level that

these requirements are related to:
Invoice Collectibility Requirements

Level
Customer creditworthiness
Header Level
Standard payment terms
Standard refund policy
Line Level Absence of fiscal funding, cancellation,
forfeiture, and acceptance clauses
Process Invoices
Applying Receipts and Event–Based Revenue Management
Applying Receipts and Event–Based

Revenue Management
When you apply a cash receipt to an invoice that is

under collectibility analysis, Receivables analyzes the
invoice to determine if deferred revenue exists.
Under certain circumstances, such as non-
creditworthy customers or extended payment terms,
full or partial receipt application on an imported
invoice can trigger automatic recognition of previously
deferred revenue.
In such cases, Receivables initiates the distribution of
revenue in the amount of the applied receipt from an
unearned revenue account to the appropriate earned
revenue account.
Applying Receipts and Event–Based Revenue Management

If Receivables bases revenue recognition on receipt application, then the total amount of
revenue that is recognized can never exceed the original amount due on the invoice line, less
any applicable credit memos. If you later need to reverse a receipt after application, then
Receivables automatically moves the amount of the reversed receipt back to an unearned
revenue account.
Note: If you are applying a receipt to an invoice with rules, but you haven’t yet run Revenue
Recognition, then Receivables automatically runs Revenue Recognition for that invoice only.
Process Invoices
Agenda
Agenda

Process Invoices
XML Receivables Documents
XML Receivables Documents
You can use Oracle XML Gateway to send Receivables

documents to your customers.
XML receivables documents include invoices, debit
memos, credit memos, chargebacks, and deposits.
The largest proportion of XML documents transmitted
to customers are customer invoices.
Invoices Debit Memos Chargebacks Deposits
XML Messages
XML invoice documents always use this XML message:
Process Invoice: This XML message contains information for your customers’ invoices,
debit memos, credit memos, chargebacks, and deposits.
In addition, your customers can set up their systems to send this XML message back to you:
Confirm Business Object Document (Confirm BOD): Your customer can send this XML
message to tell you if your XML invoice document import was successful. This is the
standard OAG Confirm BOD XML message.
Process Invoices
XML Invoices Process Flow
Completed Invoice Document Transfer Waiting

Document Scheduling Program
Exceptions
XML Gateway Started Document Transfer

Program
Payables Open Receivables Maps Payables

Transmitted Confirmation Messages
Interface Import
Process Invoices

Exceptions
Technical Errors Missing Information
Pass Payables Notify Notify

Import Validation Sys Admin AR User
NO Failed Failed
YES
Resend
Document?
Notify Sys Admin
or AR User
Resolve
Errors
Accepted Rejected
No
further
Action
Yes (Return to Waiting ) No
Process Invoices
Sending XML Invoice Documents
Sending XML Invoice Documents
Set up your system for XML invoice documents.

Ensure that Receivables transactions exist that meet
these conditions:
• the transaction must have a status of Complete
• the transaction must never have been transmitted
• the bill–to customer and bill–to site for the
transaction must exist as an XML Gateway trading
partner setup
Sending XML Invoice Documents-Other Prerequisites

You must process and transfer XML invoice documents before you run the concurrent
programs to print invoices. The Document Transfer program does not select receivables
transactions that the Print Invoice program already printed.
Process Invoices
Confirming the Import Status of XML Invoice Documents
Confirming the Import Status of XML

Invoice Documents
Upon receipt of a confirmation message, Receivables
translates the import status and reason code into the
appropriate confirmation action, and updates the
transmission status accordingly.
For each XML invoice, the transmission status will
change to either:
• Accepted– if you receive a confirmation message
with an import status of Success.
• Rejected – if you receive a confirmation message
with an import status of Failed, with an
accompanying reason code.
Confirming the Import Status of XML Invoice Documents

You and your customer can optionally implement any messages and activities that meet your
needs.
If you have set up the Process Invoice XML message for automatic receipt confirmation in
XML Gateway, then when your customer receives the invoice message, the customer sends a
Confirm BOD message back to your system.
These messages confirm the import status of an invoice document and provide reason codes for
import failures. The Oracle Payables import statuses and reason codes are mapped to
confirmation actions in Receivables.
Process Invoices
XML Invoice Documents
If the Oracle Payables confirmation message indicates

errors, then Workflow sends a notification to the
appropriate person based on the reason code:
• When errors are related to failed import
validations, such as a missing invoice amount, the
appropriate Receivables user is notified.
• When errors are caused by technical or
transmission issues, the system administrator is
notified.
Process Invoices
Reviewing and Retransmitting XML Invoice Documents
Reviewing and Retransmitting

You use the Document Transfer Summary page to

review the transmission statuses of your XML invoice
documents.
From this page, you can drill down to the Document
Transfer page to see transmission details and error
messages.
From the Document Transfer page, you can also
initiate the retransmission of failed or rejected XML
invoice documents.
Process Invoices
Agenda
Agenda

Process Invoices
Promised Commitment Amounts
Promised Commitment Amounts
At the time of order entry, a customer can reserve

some portion of an existing deposit towards payment
for the order. In Order Management, you can also enter
a promised amount for the freight on the order.
Reserve Commitment Balances

When the order is invoiced via AutoInvoice, Order Management or another feeder system
passes the promised amount to Receivables.
Receivables, then adjusts the invoice and reduces the deposit balance by the lesser of the
promised amount, the commitment balance, or the remaining amount due on the invoice.
Depending on the deposit’s transaction type, you can choose to include tax and freight when
applying a deposit to a transaction.
Process Invoices
Summary
Summary

• Describe the way processing invoices fits into the
Receivables process
• Enter and complete invoices
• Perform other invoice actions
• Correct invoices
• Print transactions and statements
• Use event-based management
• Identify XML receivables documents
Process Invoices
Manual Receipts
Chapter 15
Manual Receipts
Chapter 15 - Page 1
Manual Receipts
Manual Receipts
Manual Receipts
Chapter 15 - Page 2
Objectives
Objectives
After this lesson, you should be able to:

• Describe the Receipt Process
• Apply receipts using different methods
• Create claims
• Use balance segments
Manual Receipts
Chapter 15 - Page 3
Agenda
Agenda
• Overview of Receipt Process

• Applying receipts
• Working with claims
• Using balance segments
Manual Receipts
Chapter 15 - Page 4
Agenda
Agenda

Manual Receipts
Chapter 15 - Page 5
Create Profile
Classes
Enter Create Print Post

Customers Invoices Invoices Receipts
Use
iReceivables
Perform
Collections

The Oracle Receivables process consist of several major steps. The Post Receipts steps will be
discussed in this topic.
• Create Profile Classes: Defines several default values for customers with similar credit
terms and invoicing requirements.
• Enter Customers: Creates information for the customer, defines the address for the
customer, and the business purpose(s) at each address.
• Create Invoices: Uses AutoInvoice or manually created invoices to bill customers for
goods and services.
• Print Invoices: Produces invoices to mail to customers.
• Use iReceivables: Allows customers and employees to access customer accounts on line
to see the status of invoices and receipts and to request credits on line.
• Post Receipts: Permits posting of customer payments as they are received.
• Perform Collections: Enables collectors to use informational screens to perform timely
and accurate collection activities.
Manual Receipts
Chapter 15 - Page 6
Overview of Receipts
Apply to
Enter receipt customer
account or
invoice
Update
customer
balance
Clear Reconcile
receipt bank
statement
You can handle a receipt from a customer in several ways, depending on the amount of the
receipt and total amount owed by the customer.
• A customer may pay:
- Full amount due for a specific invoice or group of invoices.
- Partial payment on a specified invoice.
- Payment on the remaining balance in an account.
- Overpay on account creating an on-account credit.
• If the customer does not provide clear and sufficient information, you may not be able to
accurately identify the customer and properly apply the receipt.
Manual Receipts
Chapter 15 - Page 7
Receipt Creation
Receipt Creation
Receipts are created in one of three ways:
Manual QuickCash Automatic

receipts receipts receipts
• Cash • Cash • Credit Cards

• Miscellaneous • AutoLockbox • Bills of Exchange
• Direct Debits
• Prepayments
Receipt Creation
Receipts are created in one of three ways:
• Manual Receipts: Cash and Miscellaneous receipts can be manually applied to
transactions or customer accounts. The Manual Receipt entry method provides more
control over the application of individual receipts to specific items.
• QuickCash Receipts: Cash and AutoLockbox receipts can be applied using QuickCash
receipts. Use this method when you need to enter and apply receipts quickly, because it
only requires a minimal amount of information for each receipt and application. Also,
QuickCash provides an extra level of control for entering high volume receipts because it
does not immediately affect your customer’s account balance. Permits using AutoCash
rules, placing receipts on-account and enter them as unidentified or unapplied.
• Automatic Receipts: Credit Cards, Bills of Exchange, and Direct Debits can all use
Automatic Receipts to automatically generate receipts for customers with whom you
have predefined agreements. These agreements let you collect payments on time by
transferring funds from the customer's bank account to yours on the receipt maturity date.
Prepayments require Oracle Order Management. For more information, refer to the
Manual Receipts
Chapter 15 - Page 8
Oracle Receivables User Guide or 11i Order to Cash Advanced Topic on Automatic
Receipts.
Manual Receipts
Chapter 15 - Page 9
Cash Receipt Statuses
Confirmed
Remitted
Cleared
Approved Reversed

Five receipt statuses are available:
• Approved: This receipt has been approved for automatic receipt creation. This status is
only valid for automatic receipts.
• Confirmed: For manually entered receipts, this status indicates the receipt belongs to a
receipt class that requires remittance. For automatic receipts, this status indicates the
receipt has been confirmed.
• Remitted: This receipt has been remitted. This status is valid for both automatic and
manually entered receipts.
• Cleared: The payment of this receipt was transferred to your bank account and the bank
statement has been reconciled within Receivables. This status is valid for both automatic
and manually entered receipts.
• Reversed: This receipt has been reversed. You can reverse a receipt when your customer
stops payment on a receipt, if a receipt comes from an account with nonsufficient funds,
or if you want to re-enter and reapply it in Receivables. You can reverse cash receipts and
miscellaneous transactions.
Manual Receipts
Manual Receipt Entry Process
Create Enter
Apply
a batch receipts
receipts
Post
to GL
Enter
chargebacks
and
adjustments
Remit
receipts

Use the Receipts or Receipts Batches windows to begin the manual entry process.
• Create a Batch: (Optional) Receipts are entered in batches or groups. Batches provide the
ability to:
- View the difference between control and actual counts and amounts.
- Group related receipts together that share the same default attributes.
- Manage the time consuming task of data entry.
- Note: Batches are optional for Cash Receipts, but required for QuickCash receipts.
• Enter Receipts: Enter each receipt individually or in batches.
• Apply Receipts: Apply receipts to transactions or on-account.
• Enter Chargeback and Adjustments: Create adjustments and chargebaceks against
transaction to which you are applying a receipt.
• Post to GL (General Ledger): Transfer the receipt transaction accounting to the General
Ledger for recording.
• Remit Receipts: Remit receipts to collect funds from Customer accounts.
Manual Receipts
Manual Receipt Types
Manual QuickCash
Receipts Receipts
• Cash • Cash
• Miscellaneous

(N) > Receipts > Receipts
Manual Receipts: Provides more control over the application of individual receipts. In the
Receipts window, you can enter a receipt, specify the customer, reverse a receipt, and apply a
receipt to one or many invoices using mass apply. Receipt Types are Cash or Miscellaneous.
• Cash Receipts: Payment (such as cash or a check) that you receive from your customers
for goods or services. Account balances are updated as soon as the receipts are saved.
• Miscellaneous Receipts: Non-invoice related revenue earned from investments, interest,
refunds, and stock sales. Receivables Activities determine the accounting for these
transactions.
(N) > Receipts > Batches > Manual-Quick
QuickCash Receipts: Posts receipts and updates account balances after running the Post
QuickCash program rather than when the information is entered. Requires Batching.
Manual Receipts
• Cash Receipts: Payments, entered in batches, that you receive from your customers for
goods or services.
Manual Receipts
Manual Receipts Versus QuickCash Receipts
Manual Receipts
Versus QuickCash Receipts
Manual Receipts QuickCash Receipts

Apply receipts using the Apply receipts using QuickCash
Applications or Mass Apply window and AutoCash rules.
windows.
Post receipts information Post receipts after running the
after applying receipts. Post QuickCash program.
Enter GL Date and Deposit Enter GL Date and Deposit Date
Date at batch level and at batch level and change dates
change dates at receipt level. at receipt level.
Create adjustments and Create adjustments or
chargebacks for debit items chargebacks after Post
with applied receipts. QuickCash is run.
Manual Receipts Versus QuickCash Receipts

Another difference between Manual Receipts and QuickCash Receipts is that manual receipts
update a customer’s balance, while QuickCash receipts do not immediately affect a customer’s
balance. After reviewing a QuickCash batch for accuracy, you must run Post QuickCash to
update your customer's account balances.
Manual Receipts
Guided Demostration - Enter Manual Receipts
1. Receipt Number: Demo-CK01
2. Receipt Type: Select Cash from the LOV
3. Receipt Amount: $4,500.00
4. Payment Method: Check – BofA
5. Customer Name: Enter Your Standard Customer
6. (I) Save
7. Select the New Icon and enter a second check (Demo-CK02) for $8,200.00 on the same
customer
8. (I) Save
9. Select the New icon and enter a third check in Canadian Dollars. Select CAD in the current
field for (DEMO-CK03) for 11,050.00 on the same customer.
10. (I) Save.
Manual Receipts
Practice - Enter Manual Receipts
Overview
In this practice you will enter manual receipts.
Assumptions
• Use Responsibility: Receivables, Vision Operations (USA).
Tasks
1. Enter manual receipts.
Manual Receipts
Solution - Enter Manual Receipts
Enter Manual Receipts
1. Receipt Number: Your Initials-CK01.
2. Receipt Type: Select Cash from the LOV.
11. Receipt Amount: $4,500.00.
12. Payment Method: Check - BofA.
13. Customer Name: Enter Your Standard Customer.
14. (I) Save.
15. Select the New Icon to enter a second check.
16. Receipt Number: Your Initials-CK02.
17. Receipt Type: Cash.
Manual Receipts
18. Receipt Amount: $8,200.00.
20. Customer Name: Enter Your Standard Customer.
21. (I) Save.
22. Select the New Icon to enter a third check
23. Receipt Number: Your Initials-CK03
24. Receipt Type: Cash
25. Receipt Amount: 11,050.00
27. Customer Name: Enter Your Standard Customer
28. (I) Save
Manual Receipts
Manual Receipts
Creating Batches
Creating Batches
Receipt
Class
Payment Method
Deposit Date Lockbox
Apply Date
GL Date
Creating Batches
(N) > Receipts > Batches
Use batches to eliminate repetitive data entry by creating default batch-level information.
• Define the following default values for a group of receipts:
- Receipt class: Determines the stages involved in receipt to cash cycles. These stages
involved confirmation, remittance, and reconciliation.
- Payment method: Provides accounting flexfield and bank account defaults.
- Deposit date: Default Batch Date and Deposit Date are the current date but can be
changed.
- GL date: Default GL date is the day of the most recent open period but can be
changed to any open or future enterable period.
- Apply date: Date the receipt is applied.
• You can change default values for specific receipts, if necessary.
Manual Receipts
Validating Receipts in Batches
Enter a Control Count and Enter

Amount Receipts
15 Receipts
$10,000 = 13 Receipts
$10,000

One of the advantages of batching is the ability to validate that the receipts entered tie to the
control total. The process is:
• Enter the receipt count and the total receipt amount for the batch.
• The actual count and amount is updated as each receipt is entered.
• Difference between control count, amount, and actual count and amount indicate
potential data-entry errors.
Manual Receipts
Batch Statuses
Batch Statuses
Status Description
New Creating a new batch. The status
of the batch changes to Out of
Balance, Open, or Closed when
receipts are saved for the first
time.
Out of Balance Actual count and amount of
receipts do not match the control
count and amount.
Open Actual count and amount match
the control count and amount,
but the batch includes unapplied
or unidentified receipts.
Closed Actual count and amount match
the control count and amount. All
receipts have been identified and
applied to invoices or applied on
account.
Batch Statuses
A batch has a status that indicates whether it is complete. Receivables automatically updates
the batch status of a receipt batch when you add new or apply existing receipts in the batch.
Manual Receipts
Guided Demonstration - Create Receipt Batch
(N) > Receipts > Batches
1. Batch Type: Manual-Regular
2. Batch Source: Hand Deposit - BofA (Receipt Class, Payment Method, Bank Name and
Number will Default in automatically)
29. Control Totals: Count - 2, Amount - 15,400.00
30. Select the (B) Receipts
31. Receipt Number: Demo-CK04
32. Receipt Type: Cash
33. Currency: USD
34. Receipt Amount: 11,050.00
35. Select Your Standard Customer
36. Select the New Icon and enter a second check (Demo-CK05) for 4,350.00 but do not select a
customer
37. (I) Save (Close the receipt window and review the batch totals.)
Note the Unidentified amount for CK05.
Manual Receipts
Agenda
Agenda

Manual Receipts
Applying Batch Receipts
$4,000
Multiple
invoices
$1,000
Single
Receipt batch control: invoice
3 receipts, $10,000
$5,000 On-account

When you enter receipts and applications in a QuickCash batch or import them using
AutoLockbox, Receivables stores the data in an interim table. QuickCash lets you apply your
receipts to one or many transactions, use AutoCash rules, place receipts on-account, or enter
them as unidentified or unapplied.
• Use the QuickCash window to review receipts and ensure that application information is
correct.
• Run Post QuickCash to update the customer's account balances.
Note: If you do not identify the customer for a receipt, Receivables automatically assigns the
receipt a status of Unidentified.
Manual Receipts
Applying Receipts to an Invoice
$100 Fully
invoice applied
$80 $20
$80 Invoice Applied Unapplied
Customer On-account
Pays $100 No Invoice
Unidentified
customer

Use the Applications or Mass Apply windows to apply your receipts or on-account credits.
• Apply receipts to multiple invoices, single invoice, or on-account.
• Apply a receipt to open debit items to reduce the outstanding balance.
• Control who can create adjustments and chargebacks with the profile option AR: Cash-
Allow Actions.
In the Application Summary tabbed region of the Receipts window, receipts are shown as:
• Applied: Receipt is matched to a transaction.
• On-Account: The amount of the receipt is put on the customers account and may be
applied later.
• Unapplied: Receipt has not been applied to a transaction.
• Unidentified: Customer for this receipt has not been identified.
Note: Partially applied receipts will have a status of ‘unapplied’ until they are fully applied.
Manual Receipts
Applications Window
Applications Window
Different Currencies
Apply to
Invoices Pounds Yen
Adjustments &
Write offs
Cash On
Account Apply Discounts Chargeback
Applications Window
(N) > Receipts > Receipts > (B) Applications
In the Applications window, you can:
• Apply a receipt to many invoices or put cash on account.
• Apply a receipt to an invoice in a different currency.
• Create an adjustment to write off a transaction balance or unapplied receipt balances.
• Create a chargeback to create a new transaction for the balance of a transaction.
• Apply discounts.
• Refund all or part of a previously remitted credit card receipt.
• Put invoice related short payments or non-invoice related over payments or short
payments into claim investigation. Note: When you create a claim for an invoice,
Receivables places the related invoice in dispute until the claim is resolved. (only for
users of Oracle Marketing Online’s Trade management functionality.)
Manual Receipts
Guided Demonstration - Apply Receipts

1. Use Query (F11) to retrieve Demo-CK01
2. Select the (B) Applications
3. Place your cursor in the Transaction Number field and choose a transaction number from the
LOV to apply against
4. Select the Apply Check Box
5. (I) Save
Manual Receipts
Practice - Apply Receipt
Overview
In this practice you will apply receipts.
Assumptions
Tasks
1. Apply Receipt.
Manual Receipts
Solution - Apply Receipt
Apply Receipt
1. Use (F11) to Query your first Receipt (Your Initials-CK01).
2. Select the (B) Applications.
LOV to apply against.
39. Select the Apply Check Box.
40. (I) Save.
Manual Receipts
Criteria for Mass Applying Receipts
Criteria for Mass Applying Receipts

Sort Criterion Business Need
Balance Due Apply receipts to transactions based on
the balance due. To pay the largest
balances first, use descending order.
Due Date Apply receipts based on due date. To
pay the oldest balances first, use
ascending order.
Invoice Date Apply receipts in FIFO or LIFO order by
sorting on invoice date and using
ascending or descending order,
respectively.
Invoice Number Use invoice numbers, if they follow a
meaningful pattern. For example, if
invoices are numbered sequentially, sort
invoices by number to ensure that the
oldest invoice is paid first.
Criteria For Mass Applying Receipts

(N) > Receipts > Receipts > (B) Mass Apply
In the Mass Apply window, receipts can be applied en masse based on certain sort criteria.
When using the Mass Apply window:
• Apply a receipt to open debit items automatically.
• Apply receipts based on the criteria you specify.
• Review receipts before applying them or apply the receipts automatically.
Manual Receipts
Guided Demonstration - Use Mass Apply
2. Select the (B) Mass Apply
3. Select Balance Due in the Primary Sort Criteria field by Ascending order
4. Choose the (B) Apply
5. (I) Save
Manual Receipts
Practice - Use Mass Apply
Overview
In this practice you will use mass apply.
Assumptions
Tasks
1. Create a receipt for mass apply.
Manual Receipts
Solution – Use Mass Apply
Mass Apply a Receipt
1. Use (F11) to Query your second Receipt (Your Initials-CK02).
2. Select the (B) Mass Apply.
3. Select Balance Due in the Primary Sort Criteria field by Ascending order.
4. Choose the (B) Apply.
5. Save.
Manual Receipts
Applying Cross Currency Receipts
Invoice Receipt
currency currency
BEF EUR
Manual
or QuickCash

(N) > Receipts > Receipts > (B) Applications
Customers may pay for transactions with a currency that is different from the currency on the
transaction.
Note: For clients that are upgrading from previous release, the AR: Enable Cross Currency
profile option is now obsolete. Receivables will now operate as if this option is set to Yes.
Manual Receipts
Guided Demonstration - Apply Cross Currency Receipt
2. Select the (B) Applications
LOV to apply against
4. Select the Apply Check Box (Note the Gain/Loss for this Cross Currency Receipt)
5. (I) Save
Manual Receipts
Entering Discounts
Entering Discounts
Earned Unearned
Discount and Partial
Discount
Automatically Entered Manually

Calculated
Entering Discounts
You can review the Earned and Unearned discounts on the debit items to which this receipt
was applied.
• Earned discounts are automatically calculated according to the payment terms on the
transaction.
• Unearned and partial discounts are entered manually.
• Use system options, customer profiles, and payment terms to control discount calculation.
• Use the maximum discount column to view the amount of allowable discount.
• The largest Unearned discount a customer can take is the best Earned discount ever
available for the invoice.
Manual Receipts
Agenda
Agenda

Manual Receipts
Chargebacks and Adjustments
Chargebacks and Adjustments
Receivables lets you create adjustments and

chargebacks against transactions to which you are
applying a receipt.
You use chargebacks to create a new debit item for
your customer when closing an existing debit item.
Customer
New debit
Closed debit charge
Chargebacks Against Receipts

Receivables also lets you create chargebacks against receipts. You use the Receipt
Applications window to manually create a chargeback against a receipt.
Note: When you save the application in the Applications window, the claim is created in
Trade Management, and the claim number is passed to Receivables.
Manual Receipts
Chargebacks and Adjustments against Transactions
Chargebacks and Adjustments against

Transactions
You can create multiple chargebacks and adjustments

against each transaction, for positive or negative
amounts.
Receivables lets you enter a chargeback against a
credit memo or an on–account credit if they have a
positive balance.
Manual Receipts
Chargebacks against Receipts
Chargebacks against Receipts
You use the Receipt Applications window to manually

create a chargeback against a receipt.
Chargebacks against Receipts in Trade Management

Note: Oracle Trade Management is a separate product that is being integrated with
Receivables to enable functionality with claims.
If you use Trade Management to track your customers’ short payments and over payments
(claims) on receipts, then these claims are automatically passed to Trade Management for
claim tracking, analysis, and resolution. If a chargeback is required to resolve a claim, then the
chargeback is created directly in Trade Management:
To resolve an invalid invoice related claim, the Trade Management user can create a
chargeback against the related transaction.
To resolve an invalid non–invoice related claim (for a short payment), however, there is no
related transaction to create the chargeback against. Instead, the Trade Management user
can create a chargeback against the receipt that held the claim. A chargeback against a
receipt brings the Unresolved Claims total closer to zero and increases the Applied total
for the receipt.
Manual Receipts
Creating a Chargeback
Creating a Chargeback
Receivables requires that you automatically number

your chargebacks. The base number for your
chargeback numbering sequences is determined when
you install Oracle Receivables.
Creating a Chargeback against a Receipt

Note: If you have Trade Management installed, then the Trade Management user, not the
Receivables user, will create these transactions to resolve invalid non–invoice related claims.
Manual Receipts
Working with Claims
Working with Claims
Your customers can communicate disputes with you

in a number of ways. One option is via their
remittances.
For example, on a receipt, a customer might include
short payments (deductions) or over payments due to
promotional deals, short shipments, damages, and so
on.
If the remittance advice does not supply you with
supporting details, such as an on–account credit
memo number or promotional code, then additional
research may be required to determine if the
discrepancies between the billed amount and the paid
amount are warranted.
Working with Claims

Oracle Applications treats these short payments and over payments as claims. Receivables
integrates with Oracle Marketing Online’s Trade Management functionality to let you manage
these claim requests.
When you create a claim in Receivables, Receivables automatically passes the claim to Trade
Management for further research. Trade Management assigns a claim number and the claim
investigation process can begin. After a claim’s validity is determined, the claim can be
resolved directly from Trade Management without any manual intervention by a Receivables
user.
In certain instances, however, claim resolution must occur directly in Receivables. In those
cases, Trade Management sends settlement instructions to Receivables via Workflow
notifications.
Manual Receipts
Creating Claims
Creating Claims
You create claims when manually entering receipts in

the Applications window.
Claims can be either:
• invoice related
• non–invoice related
Manual Receipts
Resolving Claims
Resolving Claims
After research on a claim is completed and its validity

determined, the claim can be resolved directly from
Trade Management.
In cases where a Trade Management user cannot
resolve a claim directly, however, Workflow
notifications alert you that the claim should be
resolved in Receivables. Your resolution options differ
depending on the type of claim and its validity.
Manual Receipts
Resolving Invoice Related Claims
Resolving Invoice Related Claims
The following resolutions occur directly in Trade

Management.
• For valid invoice related claims, you can:
– Credit the transaction
– Create an on–account credit memo
• For invalid invoice related claims, you can:
– Create a chargeback against the transaction
• For both valid and invalid invoice related claims,
you can:
– Write off the remaining amount on the transaction
Manual Receipts
Resolving Non–Invoice Related Claims
All resolutions require the unapplication of the Claim

Investigation application and the reapplication of the
claim amount to either a new transaction or to a
special application type (either Chargeback or Receipt
Write–off).

The following resolutions occur directly in Trade Management.
• For valid non–invoice related claims, you can:
Create an on–account credit memo (for a short payment)
Apply an existing credit memo (for a short payment)
Create an on–account credit – cash application line (for an over payment)
Create a debit memo (for an over payment)
Apply an existing debit memo (for an over payment)
• For invalid non–invoice related claims, you can:
Enter a chargeback on the receipt (for a short payment)
• For both valid and invalid non–invoice related claims, you can:
• Write off the remaining amount on the receipt (for an over payment).
The following resolution must be manually completed in Receivables.
• For invalid non–invoice related claims, you can:
Create a write–off adjustment (for a short payment)
Manual Receipts
Resolving a Split Claim
Trade Management users have the flexibility to split an

existing claim into two or more separate claims. A split
claim might be required, for example, if a claim were to
be resolved by two separate means: 1/2 valid and 1/2
invalid.
When a claim is split in Trade Management, however,
claim information is not immediately updated in
Receivables.
Claim information is automatically updated in
Receivables when one of the claims is resolved
directly from Trade Management.
Manual Receipts
For example, an originating non–invoice related claim

has a reference number of #104 and a claim amount of
$1,000.
This table illustrates what the Trade Management user
sees if the claim is split into three separate claims:
Claim Description Claim Amount
Claim # 104 $400.00
Claim # 104-1 $250.00
Claim # 104-2 $350.00
Resolving Split Claims Example

In Receivables, however, you will still see the original claim #104 for $1,000 until one of the
claims is resolved. When Claim 104–2 is resolved, Receivables unapplies the Claim
Investigation application for $1,000, enters the resolution for claim 104–2, and creates two new
claim investigation applications: claims #104 and #104–1. If you were splitting the claim into
two different amounts, 400 and 600, then it will close claim 104 and open 104-1 and 104-2.
Manual Receipts
Agenda
Agenda

Manual Receipts
Balance Segments
Balance Segments
Receivables uses the Account Generator to update the

balancing segment values during various accounting
activities against transactions and receipts.
By matching the balancing segments for different
accounting activities back to the original transaction
or receipt, the Account Generator ensures that
Receivables uses the correct balancing segment
values during this substitution process.
Using the Account Generator

For example, if an invoice’s balancing segment that you assess finance charges for has a value
of ’01’ and the balancing segment of your finance charges account is ’02’, when Receivables
accrues finance charges for this invoice, the Account Generator automatically changes the
balancing segment of the finance charges account to ’01’.
The Account Generator in Receivables utilizes Oracle Workflow. You can view and customize
Account Generator processes through the Oracle Workflow Builder. To modify the default
setup using Oracle Workflow (for example, to use a different balancing segment for either the
finance charges or Receivables account).
Manual Receipts
Deriving Balancing Segment Values
For transaction–related activities such as adjustments

and discounts:
• Receivables derives the balancing segment value
from the receivable account that is associated
with the transaction.
For receipt–related activities such as receipt write–off
activity:
• Receivables derives the balancing segment from
the Unapplied Cash account that is associated
with the payment method bank account.

Note: Receivables does not substitute the balancing segment for miscellaneous cash, bank
errors, or commitments (deposits and guarantees).
Manual Receipts
Disabling the Balancing Segment Substitution Process for
Activities
Disabling the Balancing Segment

Substitution Process for Activities
Optionally, you may use the AR: Disable Receivable

Activity Balancing Segment Substitution profile option
to disable balancing segment substitution for
receivable activities.
• This profile option does not affect the gain, loss,
and rounding accounts that you define at the
system options level.
Disabling the Balancing Segment Substitution Process for Activities

If you disable balancing segment substitution for activities, then you must define a suspense
account in the event that your activities and original transactions do not post to the same
balancing segment value. Otherwise, the transfer to General Ledger will not succeed.
Manual Receipts
AR: Disable Receivable Activity Balancing Segment Substitution
AR: Disable Receivable Activity

Balancing Segment Substitution
The AR: Disable Receivable Activity Balancing

Segment Substitution profile option impacts these
activities:
• Adjustments
• Discounts (earned and unearned)
• Finance charges
• Activity applications (such as receipt write–off
activity, short term debt, and claims investigation)
Manual Receipts
Summary
Summary

• Describe the Receipt Process
• Apply receipts using different methods
• Create claims
• Use balance segments
Manual Receipts
Manual Receipts
Tax Accounting Process
Chapter 16

Chapter 16 - Page 1

Chapter 16 - Page 2
Objectives
Objectives
After completing this module, you should be able to do

the following:
• Overview of the Tax Accounting Process
• Define General Tax Setup Steps
• Enter Tax Adjustments
• Explain Tax Reporting Ledger

Chapter 16 - Page 3
Agenda
Agenda
• Overview of the Tax Accounting Process

• Defining Generic Tax Setup Steps
• Entering Tax Adjustments
• Explaining Tax Reporting Ledger

Chapter 16 - Page 4
Order Management Global Taxes Overview
Order Management
Global Taxes Overview
Tax Group
Tax Code
Items Customers Sites
Options, Controls, Sales Order with Tax

and Defaults Estimate
Order Management Global Taxes Overview

This diagram is an overview of the tax process in Oracle Order Management. Tax Codes and
Tax Groups are assigned to items, customers, and sites, then use defaults and other setup
options to enter a tax estimate on the sales order..
• Implement global taxes for each operating unit.
• Use the same setup steps in both Order Management and Receivables.
• Assign tax codes to customers.
• Estimate tax for orders at the time of order entry.
• Define US Sales tax calculation based on customer ship-to address.
• For Order Management and Receivables, you can enter either a Tax Code or a Tax Group
in the Tax Code field (for example, in the Customers - Standard window).

Chapter 16 - Page 5
Receivables Global Tax Overview
Tax Group
Tax Code
Revenue Items Customers Sites
Account
Options, Controls, and Transaction with Tax

Defaults Distributions

This diagram is an overview of the tax process in Oracle Receivables. Tax Codes and Tax
Groups are assigned to items, customers, and sites, or revenue account, then use defaults and
other setup options to default to the transaction to enable tax calculation. The main differences
is tax estimations are created in Order Management versus the tax calculations created in
Oracle Receivables.

Chapter 16 - Page 6
Other Products
Other Products
CRM Applications Order Capture
Order Management
Tax Engine
Projects & Order

AutoAccounting Invoices
Management
Other Products
Tax calculation can involve other products, such as Oracle Projects and Oracle Order Capture.
Certain Customer Relationship Management (CRM) products use Order Capture to call the
Tax Engine and interface into Oracle Order Management.
AutoInvoice involves calling the Tax Engine and then AutoAccounting to create the General
Ledger account numbers when importing information from Order Management or Projects to
create invoices.

Chapter 16 - Page 7
Global Tax Overview
Global Tax Overview
Value Added Tax (VAT) Sales Tax
Global Tax Overview

With country specific setups, the Order to Cash process can be automated and enable
Receivables to control all the tax calculations, accounting, and reporting.
• Value Added Tax (VAT) - Imposed on the value added to goods or services at each stage
of their supply.
• Goods and Services Tax (GST) - Sales tax levied on many consumer products and
professional services.
• Latin America - The Latin Tax Engine is an Oracle Global Financials feature used to
meet special tax needs in Latin American countries.
• Canada - Goods and Services Tax (GST), Harmonized Sales Tax (HST), and Provincial
Sales Tax (PST) are sales taxes at the federal or provincial level.
• Japan - Consumption tax is VAT paid on an expense (input tax) that is recoverable
against the VAT charged on revenue (output tax).
• Norway - Investment tax applies to certain items that are purchased for use or
consumption by a VAT-registered entity.

Chapter 16 - Page 8
• Spain - Recargo de Equivalencia is a special VAT, levied on goods and services, that
smaller customers pay on their purchase invoices in addition to standard VAT to simplify
their tax reporting.

Chapter 16 - Page 9
Tax Overview
Tax Overview
Input Tax Output Tax
Tax paid out on Tax collected on

supplier invoices customer invoices
Amount Due to Tax Authority =

Output Tax - Recoverable Input Tax
Tax Overview
Oracle Order Management and Oracle Receivables process Output Tax, which is charged on
the supply of taxable goods and services, for example, on customer invoices or revenue items.
You should report Output Tax whenever you account for sales. Oracle Payables and Oracle
Purchasing process Input Tax, which is paid on supplier invoices.
• Input tax: What you pay your tax authority via supplier invoices.
• Output tax: What you receive from customers and then pay to your tax authority.
• Amount Due to the Tax Authority consists of Output Tax on customers invoices minus
any Recoverable Input Tax on supplier invoices.

Value Added Tax Overview
.50 .25
1.00 .50
VAT TAX = .50 + 1.00 + .25 + .50

Value Added Tax (VAT) is imposed on the supply of goods and services paid for by the
consumer, but collected at each stage of the production and distribution chain. The VAT
charged on a customer invoice is called Output Tax. Any VAT paid on a vender invoice is
called Input Tax. The amount due each period can be described as follows: Amount Due =
Output Tax – Input Tax.

US Sales Tax Overview
Customer pays supplier cost of

item plus sales tax
$10 sales
$100 item +
tax
$10 sales tax
State collects
sales tax
Supplier remits
sales tax to state
tax authority

In general, the following are the series of steps in the US Sales tax cycle.
• The amount that the customer pays a supplier includes US Sales tax, if applicable.
• The supplier is responsible for remitting the sales tax to the state tax authority.
• Sales tax may not be applicable if the product is not taxable in the relevant tax
jurisdiction.
• The state and local tax jurisdictions collect sales tax from suppliers.

US Sales Tax Example
Based on customer’s ship-to address:
Structure State.County.City + Zip Code
Locations IL.Cook.Chicago + 60601
Tax Rates 3% 2% 1.5% = 6.5%

Receivables determines sales tax based on a customer’s ship to address by using the Sales Tax
Location Flexfield structure. Every segment in the Sales Tax Location Flexfield is mandatory
during entry of you customer address for this process to function properly.
The tax calculation process can be integrated with a tax partner. A tax partner is a third party
product that Oracle Applications integrates with to calculate and report state and local United
States (US) Sales tax. Tax partners include Taxware and Vertex.
Note: If you are implementing a VAT system and do not wish to calculate tax nor validate
addresses, you can select the “No Validation – Country” Sales Tax Location Flexfield structure
which requires that only the country is entered. In this case, Receivables derives the default
country from the “Default Country” system option. You may also implement Flexible Address
Formats for country specific validation of customer address information.

Tax Partner Process Overview
Tax Vertex or
Information Taxware
Oracle Receivables
Tax Tables Tax Partner
Tax Rate
Tax Amount
AutoAccounting

The United States (US) Tax Partner Solutions let you provide for complex tax calculation
needs while retaining the full power of Receivables to create and store all other tax data.
Receivables will use this information to create the appropriate tax line(s) and related
accounting information.
• Tax information stored in Receivables tax tables passes to the tax partner.
• The Tax Partner Solution is called whenever a tax rate is calculated by the Receivables
Tax Engine.
• The Tax Partner returns a tax rate and tax amount for every invoice line.
• AutoAccounting then generates account distribution tax lines based on the tax
information that the Tax Partner returned.
Oracle integrates with these partner products:
Taxware Sales Use Tax System (PLSQL)
Vertex Quantum for US Sales & Use Tax (PLSQL)
Note: The integration supports US Sales tax only. Beginning with Oracle Release 11.5.7,
Taxware and Vertex software is bundled with Oracle Applications.

For customers who are using Oracle Applications prior to 11.5.7, you can apply patch number
1907271.
Tax partners integrate with:
• Oracle Receivables
• Oracle Order Management
• Oracle Order Capture
• Oracle iStore
• Oracle Sales

Other Taxes in Oracle Applications
Other Taxes in Oracle Applications
• Recoverable and Non-Recoverable Input Taxes

• EU Acquisition and Reverse Charge Taxes
• Deferred Output Taxes
• Withholding Taxes
• Goods and Service Tax
• Canadian Government, Provincial, and
Harmonized Sales Tax
• Sales Equalization Taxes
• Investment Taxes
• Excise Duties
• Latin and South American Tax regimes
Oracle Applications supports other types of tax:

Recoverable and Non-Recoverable Input Taxes: See Oracle Purchasing or Payables User
Guides.
EU Acquisition and Reverse Charge Taxes
Deferred Output Taxes: Used in countries that allow deferring recognition of tax until payment
of invoices.
Withholding Taxes: Used in Oracle Payables to withholding taxes from suppliers in
compliance with IRS or local authorities’ orders.
Goods and Service Tax: Sales tax levied on many consumer products and professional
services.
Canadian Government, Provincial, and Harmonized Sales Tax
Sales Equalization Taxes
Investment Taxes
Excise Duties
Latin and South American Tax regimes: Brazilian ICMS, IPI, Tributary Substitutions;
Argentine VAT Perception, Turnover Perception; Colombian VAT.

For countries such as France, Italy, and Russia, Oracle Receivables supports deferral of Output
Tax liability until payment has been collected.
For cross border drop shipments within Europe, Oracle Receivables/Order Management/Order
Capture support automatic defaulting of one or more applicable taxes.
In Receivables, you can calculate and account for multiple tax regimes, levying additional
taxes such as Surcharges, Excise, and Sales Equalization taxes as required.
The Latin Tax Engine in Oracle Receivables can calculate and report taxes in the local tax
regimes for taxes levied in your order-to-cash cycle.

Agenda
Agenda
• Overview of Tax Accounting Process


Tax Setup Steps
Tax Setup Steps
Select a Tax Method
Define Tax Codes & Rates
Setup Inclusive & Exclusive Taxes
Setup Tax Groups (Optional)
Setup Item or Account Method (Optional)
Tax Setup Steps

1. Select a Tax Method: Use Tax Method, along with the value you entered for the Calculate
Tax field assigned to your transaction type, to determine whether to calculate tax on your
transactions.
2. Define Tax Codes and Rates: Enter and maintain your tax codes and their associated tax
rates.
3. Setup Inclusive and Exclusive Taxes: Determine whether a line includes tax or the tax is
listed as a separate line.
4. Setup Tax Groups (Optional): Group multiple conditional taxes under one name.
5. Setup Item or Account Method (Optional): Define rules associated with line item and
destination (point of supply) or assign a tax code to the natural account segment of your
revenue account.

Tax Setup Steps Continued
Define Tax Preferences, Defaults, and Results
Define Tax Exemptions and Exceptions
Define AutoAccounting for tax
Enable Calculation of Tax on Freight
Define Tax Profile Options

7. Define Tax Preferences, Defaults, and Results: Define Tax Code Defaults and hierarchy to
determine the order in which Receivables derives a default tax rate for manually entered or
imported transactions using AutoInvoice.
8. Define Tax Exemptions and Exceptions: Exempt customers and items from a specific tax
or assign special rates to products you ship to specific locations.
9. Define Transaction Types: Calculate tax for transactions with a specific transaction type.
10. Define AutoAccounting For Tax: Assign account numbers to tax transactions.
11. Enable Calculation of Tax on Freight: Allow tax on freight transactions.
12. Define Tax Profile Options: Set profile options to calculate tax in different ways based on
business needs.

Defining Tax Codes and Rates
Select a Tax Method
Taxable Basis
Value Added Tax Sales Tax
Effective Dates
5%
Tax Rate
Tax Accounting Tax
Information Controls

(N) > Setup > Tax > Codes
Use the Tax Codes and Rates window to define the tax codes that you will use to record tax
information in Order Management and Receivables documents.
Individual taxes can be either inclusive or exclusive on the price list. These taxes can both raise
and lower the price list amount and be calculated using a different Taxable Basis.
For each tax code, you can enter:
• Tax type: Select a Tax Method in the Tax Type field as VAT or Sales.
• Tax rate: Percentage used to calculate tax.
• Taxable basis: Value of item or services used to calculate tax. Use After Discount, Before
Discount, Quantity, PL/SQL Formula, or Prior Tax as the basis.
• Effective dates: Dates the Tax Code is available.
• Tax controls: Permits selection of Output or Input Tax class, Inclusive Tax, or Allow
Exempt check box of tax exemptions.

• Tax accounting information: Accounts used to record tax in different situations such as
Adjustments, Finance Charges and Miscellaneous.

Setting Up Inclusive and Exclusive Tax
Item
Item
+ Tax
Item Cost + Tax = Line Cost Total Cost
Inclusive Tax Exclusive Tax
Inclusive Tax
Allow Inclusive Override

(N) > Setup > Tax > Codes > (T) Control
AutoAccounting separates inclusive taxes from extended line amounts before creating revenue
and tax accounting entries. Tax inclusive calculations at the transaction line level may be
required in Canada, Japan, and Latin America.
• Inclusive Tax: Line amount for an item includes the tax for the item.
• Exclusive Tax: Tax not included in the line amount for the item.
• Check Inclusive Tax check box in Tax Codes and Rates window for inclusive tax codes.
• Check Allow Inclusive Override check box if you want to allow changing tax code from
inclusive to exclusive (or vice versa) when entering invoices.

Guided Demonstration - Define Tax Code
1. Enter Tax Code: Demo
2. Enter Tax Type: Vat
3. Enter Taxable Basis: After Discount
4. Enter Tax Rate %: 10.
5. Accept the Default sign as Credit.
6. (T) Effective
7. Enter Effective Dates: 01-Jan-2001.

− If the tax rate changes, a To date can be entered and create a new tax code entered
with the same name and an effective date after the To date on this code.
8. Select the Enabled check box.
9. (T) Control
10. Select Tax Class: Output

− The input tax class is used for miscellaneous cash recorded as a negative amount.
− Output is used for all transactions, receivables activities, and miscellaneous cash
receipts with a positive amounts.
11. Review selections in this tab.

− Allow Exempt: To allow tax exemptions for items using this tax code.
− Adhoc: To be able to change the tax rate for this tax code in the Transaction
windows. Can only be check if the tax type is not 'Location Based Tax.' and can be
updated after saved.
− Inclusive Tax: For tax code to automatically display line amounts including tax.
− Allow Inclusive Override: To change the tax code from inclusive to exclusive (or
vice versa) when entering invoices.
− Location-based tax codes are always tax exclusive and cannot be changed to tax
inclusive.
12. Select Displayed option only.

− The Displayed check box can be deselected to prevent the tax code from appearing
as a separate tax code on a list of values when used in a tax group.
13. (T) More

14. Enter Tax Accounting Code: 01-000-2520-0000-000
15. Accept the default Printed Tax Name.
16. Leave Vat Transaction blank.

− This field is used for Spanish and Belgian Tax reporting.
17. (B) Tax Accounting
18. Review this window.

− Use the Tax Accounting window to enter additional accounting information about
your tax codes and tax locations.
− Specify expense, revenue, and non-recoverable accounts for adjustment, finance
charge, and earned and unearned discount receivables activities.
− Use the Tax Accounting window to set up deferred tax, an accounting method in
which tax is due when payment is applied to an invoice, rather than when the
invoice is created.

Practice - Define Tax Codes
Overview
In this practice, you will set up a tax code and enter the GL account.
Assumptions

responsibility.
Tasks
1. Define a tax code with a 10% rate.

Solution - Define Tax Codes
Define Tax Code
1. Navigate to the Tax Codes and Rates window:
• (N) Setup > Tax > Codes
2. Enter the following in the Rates tab:

− Tax Code: <XX>Tax
− Type: Sales Tax
− Taxable basis: After Discount
− Tax rate: 10
− Sign: Credit
3. Select Output in the Tax Class field in the Control tab.
4. Enter the GL Accounts in the More tab.

− Tax Account: 01.000.2520.0000.000
5. (I) Save.

Tax Groups Overview
Tax Groups Overview
• City Tax
• County Tax
• Metro Tax
New York • State Tax
• Country Tax
Paris
Tax Groups Overview

Multiple tax codes can be grouped together within the Order to Cash business cycle to build a
schedule or group of taxes.You can use tax groups to centralize the complex rules for finding a
tax code for a given place of supply and item. Tax groups can automate the selection of a
single tax code based on condition sets. For example, in condition sets for a tax group, you can
specify which tax code to use for which destination country. In particular, tax groups support:
• Tax on cross-border transactions.
• iStore and CRM applications.
Tax groups can be used to calculate:
• Multiple taxes for a transaction or transaction line.
• Compound taxes for a transaction.
- Assign a precedence number to each tax code in the Compounding Precedence
field. The highest precedence number calculates tax on all tax lines with a lower
precedence number, except when the taxable basis is prior tax.
- Tax groups can also contain multiple independent branches of compounded tax.

Setting Up Tax Groups (Optional)
Default sources:
Tax Code System Options, Bill-
to Customer, Ship-to
Tax Code Tax Group
Customer Site, Item,
Memo Line
Tax Code
Tax Codes
Tax Rates
Enter Order or
Order or
Invoice with Tax
Invoice Line
Group Accounting

The Inclusive Tax setting from the tax code defaults to the Inclusive Tax check box in the Tax
Groups window.
You can assign tax groups to inventory items, customers, or customer sites.

Compound Tax Example
Precedence
Line Number Number Tax Code Tax Rate Tax Amount
1 1 GST 7% 7.00
2 2 PST 10% 10.70
Total: 17.70
Based on an invoice line of 100

Receivables permits the creation of compound tax charges during invoice entry and import if
the Compound taxes system option is set to Yes. Precedence numbers are assign to indicate
which tax line you want Receivables to compound. In the example of above, the tax is
calculated on Line 1 and then the total amount of 107, which consists of 100 for the line
amount plus 7 for the Tax on Line 1 are used to calculate the tax on Line 2. The two taxes are
then added together to give a total tax due of 17.70. When setting up compound tax the
following is applicable:
• Define tax precedence rules for compounding tax.
• Prior to Release 11i, only one compounding branch was allowed.
• Compounding rules support multiple groups of “tax on tax” in a single invoice.
• Use compounding precedence field to group tax lines together.

Inclusive Tax with Compounding Example
Code Inclusive Precedence Rate Taxable Tax

A Yes 1 20% 100 20
B Yes 1.1 10% 120 12
C No 2 10% 100 10
D No 2.1 30% 110 33
Based on an invoice line of 132
(100 plus Inclusive Tax of 32 for Code A and B)

The example illustrates multiple compounding with an Inclusive branch. Only one
compounding branch may be inclusive. If a compounding branch is inclusive, all Tax Codes in
the branch must be inclusive.
In the example, Code A and B are one branch, both are Inclusive, and B uses the total of 100
plus A’s tax of 20 to calculated the 12 tax thus compounding Code A’s tax. Both Code A and
B taxes are added to the line because they are inclusive bring the line total to 132.
Code C and D are a second branch with Code D compounding Code C’ tax. Code C and D are
not Inclusive so a separate line will be added to the invoice for the tax of 43 from Code C and
D’s calculation. The total invoice will be 132 plus 43 equals 175.

Defining Condition Sets
• Use Condition and Exception Sets and Group

Constraints to specify one or more conditions for
each tax code
• Optionally define actions for each condition set
• Example: If ship-to country is Canada and ship-to
province is Ontario, use this tax code.
• Example: If ship-to province is not found, display
system error message

(N) > Setup > Tax > Groups > (B) Conditions > (T) Lines > (T) Actions
(N) > Setup > Tax > Groups > (B) Group Constraints > (T) Lines > (T) Actions
Use group constraints to ensure that specific conditions are met before using a particular tax
group. Example: If ship-to province is not found, display system error message
• Condition Sets indicate that each tax code is dependent on one or more conditions that
you specify such as: If ship-to country is Argentina, use this (Argentina) tax code.
• Exception Sets can be assigned to the tax code to specify exceptions, including changing
the rate for a tax code automatically.
• Constraints can be assigned to a tax group to ensure that specific conditions are met
before using this tax group. Example: If ship-to province is not found, display system
error message.

Guided Demonstration - Define Tax Group
(N) > Setup > Tax > Groups
1. Enter Group Code, Group Name, and Description: Demo Group.
2. Enter Effective: 01-Jan-2001.
3. Enter the following two Canadian taxes:

− GST with 7% rate, Compounding Precedence: 1
− BCPST with 7% rate, Compounding Precedence: 1.1
4. Do not select the Inclusive Tax check box.
5. (B) Group Constraints for Tax Code BCPST
6. Define Constraint with Name: British Columbia

− Display: 1
− Clause: If
− Entity: Ship To
− Field: Province
− Operator: =
− Value: Alberta
7. (T) Action
− True: Do use this Tax Code
− False: Do not use this Tax Code
8. (B) OK

Practice - Create a Tax Group
Overview
In this practice, you will create a tax group and conditions with multiple compounding branches.
You will also determine the tax calculation based on the setup.
• Create a tax group.
• Determine the tax.
Assumptions

responsibility.
Tasks
1. Create a tax group named <XX> GSTPST with the following information:
Tax Code Tax Compounding Condition Ship-to Location

Rate Precedence
GST 7 1 Country Canada
NBPST 11 2 Province New
Brunswick
QCTVQ 6.5 2 Province Québec
2. Determine the Tax.
Assume that an invoice of $1,000 is created using the above tax group and shipped to an address
in Quebec province, Canada. Calculate the tax amount manually and complete this table:
Precedence Tax Code Tax Rate Taxable Calculation Tax Amount
Amount
Total

Solution - Create a Tax Group
Create Tax Group
1. Navigate to the Tax Groups window:
• (N) Setup > Tax > Groups
2. Enter a Group Code and Group Name of <XX>GSTPST.
3. Select the following tax codes, enter compounding precedence, and Conditions:
Tax Code: GST

− Tax Rate: 7%
− Compounding Precedence: 1
− (B) Conditions
− Condition Name: <XX>Canada
− Clause: If
− Entity: Ship-To
− Field: Country
− Operator: =
− Value: Canada
− (T) Actions
− True, Use this tax code, False, Do not use this tax code.
Tax Code: NBPST

− Tax Rate: 11%
− (B) Conditions
− Condition Name: <XX>New Brunswick
− Clause: If
− Entity: Ship-To
− Field: Province
− Operator: =
− Value: New Brunswick
− (T) Actions
− Tax Code: QCTVQ
− Tax Rate: 6.5%
− (B) Conditions
− Condition Name: <XX>Quebec
− Clause: If
− Entity: Ship-To
− Field: Province

− Operator: =
− Value: Quebec
− (T) Actions
4. (I) Save.
Determine Tax
Precedence Tax Code Tax Rate Taxable Calculation Tax Amount

Amount
1 GST 7 1000 1000*7% 70.00
2 QCTVQ 6.5 1070 1070*6.5% 69.55
Total 139.55

Select a Tax Control Method
Item Method Account Method
Revenue
Accounts
Inventory
Item Ship To
Country Tax Code

Receivables provides two methods for deriving the appropriate VAT tax code and rate for your
transactions.
• Item Method
• Account Method
Note: Before implementing Receivables, you need to decide whether you want to derive a
transaction line's tax code and rate from the line's item or the line's natural revenue account.
Normally, the tax code for a transaction (line) is derived using rules associated with the line
item and destination (Point of Supply).
The Item Method defaults tax codes based on a search hierarchy that you define in the System
Options window. Typically within the Item Method, the system searches for a tax code at the
item, customer site, customer, and system option levels (in that order) and ignores any tax
codes associated with the Revenue Account of the line item. The Item Method:
• Derives tax code from combination of inventory item and ship-to country.
• Can be used for multiple, conditional, compounded taxes.
• Supports integration between Oracle Receivables and:

- Oracle Order Management.
- Oracle Order Capture.
- Legacy systems.
The Account Method requires assigning one or more revenue accounts to a tax code. Then,
when recording a transaction to one of the revenue accounts, Receivables will record the tax on
that transaction to the VAT account assigned to this revenue account. With the Account
Method:
• One or more revenue accounts are assigned to a tax code.
• Tax is recorded on the tax account assigned to the revenue account.
• Tax code for invoice distributions can be validated against tax code assigned to revenue
account.

Setting Up Account Method (Optional)
Assign Tax Code to

Natural Account
Segment of Revenue
Account
In General Ledger Tax Validation
Options Window:
In Receivables
System Options Allow Tax Code
Window: Override
Set Revenue Accounts
Hierarchy to 1
Enforce Tax

General Ledger, Vision Operations (USA)
(N) > Setup > Tax > Tax Options > (T) Account Level
(N) > Setup > System > System Options > (T) Tax Defaults and Rules
To set up the Account Method:
In General Ledger Tax Options window, assign a tax code to the natural account segment of
your revenue account. Set up validation by deriving tax code from revenue account).
In System Options window, check Enforce Tax from Revenue Account and Revenue Accounts
check boxes and set Revenue Accounts tax code defaulting hierarchy to 1. Make sure Allow
Tax Code Override check box is not checked for accounts that you want to validate.

Assigning Tax Codes to Items
Assigning Tax Codes to Items
Use the Tax Code field in the Invoicing region of the

Master Item window to assign a tax code or a tax
group to inventory items.
List of Values
Tax Group
Tax Code
Attribute
Tax Group
…
Tax Code
Pick One
Tax Code
Tax Code
Setting Up Item Method

(N) > Setup > Transactions > Items > Define Items > (T) Invoicing
Use tax groups to control tax calculation based on item destination. For example, use
conditions such as “If ship-to warehouse = Korea, use this tax code.”
Note: A different tax code or group can be assigned to each Inventory Organization rather than
using the default from the Master Item.

Defining Tax Preferences, Defaults, and Rules
Defining Tax Preferences,

Defaults, and Rules
In System Options Window:
lts
e fau s
D le
Tax d Ru
Tax an
Tax
Rules
Tax
Tax Defaults
Preferences
Defining Tax Preferences, Defaults, and Rules

(N) > Setup > System > System Options > (T) Tax or (T) Tax Defaults and Rules
Tax Tab
Use the Tax tabbed region to define how Receivables calculates taxes.
Specify your tax method, the Location Flexfield Structure to use to determine your taxes for
different customer locations, and whether to compound taxes for your customers.
Select to recognize tax exception rates for customers, customer sites, specific locations, and
products, and whether exemptions that you define for specific products or customers should
take precedence.
Tax Defaults an Rules Tab
Use the Tax Defaults and Rules tabbed region to Enforce Tax from your Revenue Account.
Optionally set up your system to ensure that the tax code for your invoice lines is the same as
the tax code assigned to the 'Account' segment of your Revenue account.

Define your Tax Code Defaults and Hierarchy by checking the appropriate boxes and entering
a sequence number for each. This hierarchy determines the order in which Receivables derives
a default tax rate when you manually enter transactions or import them using AutoInvoice.

Guided Demonstration - Explain Tax System Options
(N) > Setup > System > System Options (T) Tax
1. Review the Tax System Options.

− Tax Method: “Sales Tax' or 'VAT' (value added tax).
− Receivables uses this tax method, along with the value entered for the Calculate
Tax field assigned to transaction type, to determine whether to calculate tax for
your transactions.
− Location Flexfield Structure.
− Use this to validate customer addresses as well as calculate sales tax based on
customer's shipping address.
− Receivables requires defining the segments of the sales tax Location Flexfield
structure from the top down. For example, if defining a Sales Tax Location
Flexfield structure that includes state, county and city, define your state
segment first, followed by the county segment, and then the city segment.
− Postal Code Range.
− The default value when entering sales tax rate assignments in the Tax Locations
and Rates window.
− Address Validation.
− If not using a flexible address format for validation, enter the type of Address
Validation to use.
− This option is only valid for addresses in your home country.
− Enter one of the following:
− Error: Receivables displays an error message when an invalid address
format is entered.
− Warning: Receivables displays a warning message if a tax rate or location
is not defined for this address.
− No Validation: Receivables does not validate the address.
− Compound Taxes check box.
− To compound taxes in Receivables, check the Compound Taxes box.
− Compound taxes are taxes that are based on other taxes.
− If you check this box, assign precedence numbers to the tax lines when entering
invoices.
− Invoice Printing.
− This is the method Receivables will use when printing tax amounts on invoices.
− The value you enter here becomes the default for your customer profile classes.
− Choose one of the following methods:
− European Tax Format: Print tax information in the following format: Tax
rates printed as the last column of invoice lines, freight items printed last,
and the taxable amount with the summarized tax codes printed at the end of
the invoice.

− Itemize By Line: Itemize tax information for each invoice line.
Receivables displays this information after each invoice line.
− Itemize and Summarize: Display both itemized and recap tax
information.
− Summarize by Tax Code: Display all tax information under the heading
'Tax Summary by Tax Code.' If two tax lines have the same tax code, rate,
exemption, and precedence number, Receivables will group them together.
− Summarize By Tax Name: Display all tax information under the heading
'Tax Summary by Tax Name.' If two tax lines have the same tax name,
rate, exemption, and precedence number, Receivables will group them
together.
− Total Tax Only: Display only the total tax amount at the bottom of the
document.
− Tax Registration Number.
− To print a registration number on their invoices.
− Tax Vendor Views.
− To use to calculate tax, or select one from the list of values.
− Enter Oracle if not implementing a tax vendor extension and want to calculate
tax using the tax engine.
− Sales Tax Geo Override.
− If using Taxware Sales/Use Tax System, enter a value.
− Inclusive Tax Used check box.
− To use inclusive tax codes (optional).
− This option determines at what point Receivables updates the total line amount
in the Lines window when you add, update, or delete a tax line.
− If this option is Yes, Receivable does not update the 'Lines' total until you save
your work; otherwise, Receivables enters a null value when you make the
change, then updates the total when you save your work.
2. Review Rounding Options.

− Calculation Level.
− Calculate tax for each invoice line (this is the default) or Header to calculate tax
once for each invoice for each rate.
− Rounding Rule.
− Choose from the following rules:
− Up: Choose this option to round tax calculations to the greater amount.
− Down: Choose this option to round tax calculations to the lesser amount.
− Nearest: Choose this option to round calculations to the nearest decimal
point or integer.
− Reporting Currency (this is the same as your functional currency).
− Precision.
− To use for tax calculations in this currency.
− This is the number of digits to the right of the decimal point that are used in
regular currency transactions.
− The standard precision must be greater than or equal to zero, and must be less
than or equal to the functional currency precision.

− Minimum Accountable Unit.
− For tax rounding in this currency.
− This is the smallest denomination used in this currency (this might not
correspond to the standard precision).
− This must be greater than your functional currency minimum accountable unit.
− Allow Override box.
− To enable Tax Calculation and Tax Rounding at the customer or site level
3. (T) Tax Defaults and Rules.

− Enforce Tax from your Revenue Account.
− To ensure that the tax code for your invoice lines is the same as the tax code
assigned to the 'Account' segment of your Revenue account.
− Tax Code Defaults and Hierarchy
− This hierarchy determines the order in which Receivables derives a default tax
rate when manually entering transactions or import them using AutoInvoice.
− Customer Site: Use the tax rate defined at the customer address level.
− Customer: Use the tax rate defined at the customer level.
− Product: Use the tax rate defined at the item level.
− Revenue Account: Use the tax code assigned to the natural account
segment of your Revenue account.
− System Options: Use the tax code that you entered in the System Options
window.
− Tax Code.
− If the Tax Method is VAT, enter a default Tax Code (optional).
− Exception Rates check boxes.
− Use Customer Exemptions: Check this box to include customer exemptions
when calculating tax for transactions. Use the Tax Exemptions window to
exempt customers and items from specific tax.
− Use Item Exemptions: Check this box to include item exemptions when
calculating tax for your transactions. Use the Tax Exemptions window to
exempt customers and items from specific tax.
− Use Item Tax Rate Exceptions: Check this box to use the tax rate defined for
specific products based on the customer's Ship-To address. Use the Item Tax
Rate Exceptions window to enter tax rates for specific items based on Ship-To
address.

Defining Tax Exemptions
• Select the Exempt check box on the tax code.

• Define Exemptions and Exceptions in the
corresponding forms.
• For customer exemptions, assign tax code to
customers at either the customer or site level.
• For product exemptions, assign tax code to
products in the Master Item window.
Tax Code

For Customers: (N) > Customers > Standard > (T) Classification
For Customer Sites: (N) > Customers > Standard > (T) Addresses > (B) Open > (T) Business
Purposes >
(B) Open
For Items: (N) > Setup > Transactions > Items > Define Items > (T) Invoicing
Exemptions: Define tax exemptions to fully or partially exempt a customer, item, or range of
items from specific tax codes.
Exception: Define tax exceptions to assign special tax rates to products that you ship to
specific locations.

Guided Demonstration - Define Tax Exemptions
(N) > Setup > Tax > Exemptions
1. Select Customer radial button.
Exemptions can also be entered by item or range of items.

− Customer: Hilman and Associates
− Site: Tulsa (Optional)
− Tax Code: Demo
− Reason: Education
− Date: Accept default
− Status: Primary
− Unapproved: Exemptions created automatically during Invoice entry or import
are recorded as Unapproved. Exemptions with this status may be changed to
any of the statuses listed here.
− Manual: This exemption has been approved but Receivables will not
automatically use it. You have to explicitly use this exemption. Exemptions
with this status can only be changed to Primary or Expired.
− Primary: This exemption has been approved and Receivables will automatically
calculate tax. Exemptions with this status can only be changed to Manual or
Expired.
− Expired: Discontinue a previously approved exemption. Once discontinued,
their status cannot be changed.
− Rejected: Reject an Unapproved exemption. Once rejected, their status cannot
be changed.
3. (I) Save.

Defining Transaction Types
Calculate Tax on
All Invoices
Tax Calculation Check Box
Customer Sites Not Subject to Tax
Assign Exempt
Tax Code

(N) > Setup > Transactions > Transaction Types
(N) > Setup > Transaction Types > Define
Check the Tax Calculation check box in the Transaction Types window for each transaction
type to ensure calculation of tax for all invoices.
Customers and customer sites not subject to tax should be assigned an exempt tax code.

Defining AutoAccounting for Tax
AutoAccounting
01-110-7340-0000-000
In the AutoAccounting Window
enter:
• Tax in the Type Field
• Segment Names
• Value used to derive the
Account General
Ledger

(N) > Setup > Transactions > AutoAccounting
Use the AutoAccounting window to specify how Oracle Receivables determines the General
Ledger account for tax. Enter Tax in the Type field.
Query all the segments of your Tax Account Flexfield. For each segment, assign the value that
you want to use to derive the account.

Guided Demonstration - Define Tax AutoAccounting
(N) > Setup > Transactions > AutoAccounting
1. Query up Tax using (K) F11, (K) Ctrl Fll
Derives the tax account for your transaction.
2. Explain the options.
3. For each segment, enter either the table name or constant value that you want Receivables to
use to get information.
4. Select one of the following table names:

− Agents: Use the agent's table. Receivables uses the revenue account associated with
this agent.
− Transaction Types: Use the transaction types table.
− Standard Lines: Use the standard memo line or inventory item on the
transaction. Receivables uses the revenue account associated to this standard memo
line item or inventory item.
− Taxes: Enter this option to use tax codes.
− Bill To Site: Use the bill-to site of the transaction.
5. Or enter a Constant value for this segment (select one from the list of values.)
− To use the same value for this Accounting Flexfield segment.
6. (I) Save.

Enabling Calculation of Tax on Freight
Enabling Calculation of Tax on Freight
• Create freight amounts as regular invoice lines.

• Use an inventory item to define freight services
and enable AutoAccounting to distinguish
between freight and regular line items.
AutoAccounting

Defining Tax Profile Options
• Tax: Allow Manual Tax Lines

• Tax: Allow Ad Hoc Tax Changes
• Tax: Allow Override of Customer Exemptions
• Tax: Allow Override of Tax Code
Profile 5%
Options

(N) > Profile > System
• Tax: Allow Manual Tax Lines: Determines whether users can enter manual tax lines in
the Transactions windows in Receivables.
• Tax: Allow Ad Hoc Tax Changes: Provides selections for updating rates and amounts
assigned to tax codes in the transactions window in Receivables, if you defined tax codes
in the Tax Codes and Rates window and set Ad Hoc to Yes.
• Tax: Allow Override of Customer Exemptions: Prevent users from entering unapproved
exemptions in Receivables.
• Tax: Allow Override of Tax Code: Provides choices to override a system-derived tax
code during order or invoice entry.
Note: The Tax: Calculate Tax on Credit Memos profile option has moved to the System
Options window.

For Order Management Profile Options
For Order Management Profile Options
Profile Option Setting Reason
Tax: Invoice Yes Enables freight amounts entered in

Freight as Oracle Order Management to be
Revenue passed to Oracle Receivables as
taxable line items.
Tax: Inventory Freight Lets Oracle Order Management

Item for (Inventory identify an inventory item on a
Freight Item) transaction line imported into
Oracle Receivables via the
Receivables Interface program.
Defining Profile Options

(N) > Profile > System

Agenda
Agenda


Tax Accounting Overview
Set up Tax Accounting Information for

Tax Codes and Receivables Activities
Deferred Tax
Miscellaneous
Cash
Earned
Unearned
Adjustments
Discounts
Finance Charges

In Oracle Receivables, flexible setup options provide choices on how the tax is calculated and
which tax accounts to use for each activity. This can reduce tax liability in countries where
adjusting entries for tax are allowed. To set up for tax accounting, define:
• Tax accounting information for tax codes:
- Deferred tax
• Accounting rules for Receivables Activities:
- Miscellaneous transactions
- Discounts
- Adjustments
- Finance charges

Setting Up Tax Accounting for Deferred Tax
Setting Up Tax Accounting

for Deferred Tax
Tax Collected
Deferred Tax
Deferred
Tax Code Tax
Tax &
5% Interim Tax
Accounts
Tax Rate
Setting Up Tax Accounting for Deferred Tax

(N) > Setup > Tax > Codes > (B) Tax Accounting
Deferred tax is an accounting method that defers the liability of tax to the time that the cash is
collected, rather than when the invoice is created.
• Define deferred tax codes in the Tax Codes and Rates window.
• Check the Deferred check box in the Tax Accounting window.
• Enter accounts in the Tax Account and Interim Tax Account fields of the Tax Accounting
window.

Guided Demonstration - Define Deferred Tax

− Tax Code: Demo DefTax
− Type: Value Added Tax
− Taxable basis: After Discount
− Tax rate: 20
− Sign: Credit

− Tax Account: 01.000.2520.0000.000
4. Select the Tax Accounting button to open the Tax Accounting window.
5. Select the Deferred Tax check box.
Caution: Once the tax code is changed the value in this box cannot be changed.
6. Enter the Interim Tax Account:

− Interim Tax Account: 01.000.2800.0000.000
General Ledger (GL) accounts for Receivables Activities that have Tax Code as the
source may be entered in this window.
7. (I) Save.

Practice - Deferred Tax Codes
Overview
In this practice, you will set up a deferred tax code and enter the GL accounts.
Assumptions

responsibility.
Tasks
1. Define a deferred tax code with a 20% rate.

Solution - Deferred Tax Codes
Define Deferred Tax Code
1. Navigate to the Tax Codes and Rates window:
• (N) Setup > Tax > Codes

− Tax Code: <XX>DefTax
− Type: Value Added Tax
− Taxable basis: Before Discount
− Tax rate: 20
− Sign: Credit

− Tax Account: 01.000.2520.0000.000
6. Select the Deferred Tax check box.

Caution: Once the tax code is changed the value in this box can not be changed.
7. Enter the Interim Tax Account:.

− Interim Tax Account: 01.000.2800.0000.000
General Ledger (GL) accounts for Receivables Activities that have Tax Code as the
source may be entered in this window.
8. (I) Save.

Defining Receivables Activities
To set up Receivable
Activities for Tax Accounting:
1. Define GL Account
2. Select Tax Code Source
3. Check Recoverable
or Non Recoverable
4. Enter Tax Code if Tax
Code Source Option is
the Activity

(N) > Setup > Receipts > Receivable Activities
Use the Receivables Activities window to define Receivables Activities.
Define the GL Account and Tax Code Sources.
• GL Activity Source Options:
- Activity GL Account
- Revenue on Invoice
- Tax Code on Invoice
- Distribution Set
Tax Code Source Options:
• None
• Activity
• Invoice
Check the Recoverable or Non-Recoverable check box if the Tax Code Source is Invoice.

Enter a Tax Code if the tax code source is Activity.

Guided Demonstration - Define Tax Receivables Activities
N > Setup > Receipts > Receivable Activities
1. Enter the Name and Description: Demo Adjustment.
2. Select Adjustment from the list of values.
3. Select Tax Code on Invoice uses the GL account set up on the Tax Code Accounting
window.
4. Select Activity for the Tax Code Source in the Accounting region.
− None, which means no tax, is calculated on the Receivables activity.
− Activity, which used the tax code assigned on bottom of this screen.
− Invoice, which used the tax code on the original invoice.
− With Invoice also select the Recoverable or Non-Recoverable option that
appears below the Tax Code Source field.
5. Assign the Tax Code: Demo.
6. (N) Setup > Tax > Codes
7. Query Demo tax code.
− Adjustment: 01-740-5230-0000-000 01-740-7776-0000-000
− Earned Discount: 01-740-7825-0000-000 01-740-7777-0000-000
− Unearned Discount: 01-740-7824-0000-000 01-740-7778-0000-000
− Finance Charge: 01-740-7810-0000-000 01-740-7779-0000-000
− The account numbers entered in this window are used for the Recoverable and Non-
recoverable tax options when the Tax Code source of Invoice is selected.
− The Tax Accounting window also provides GL account numbers for different
Receivables activities.
− When the Tax Code Source of Invoice and Non-recoverable are selected on
the Receivables Activity, the GL account will be derived from the Non-
recoverable section of accounts shown in this window.
− When Recoverable in combination with Invoice as the Tax Source on the
Receivables Activity, is selected, the GL account will be the account
number in the Tax Account field at the top of this window.
− When the Account Source of Tax Code is selected on the Receivables
Activity, the Expense/Revenue Accounts shown in this window are used.
9. Save.

Changing Tax Transactions
Transactions or Transactions Summary
Profile Tax Code

Option
Tax: Allow Override of Tax Code
With AutoAccounting
Rerun Review
Accounting To Update the
Tax Account

(N) > Transactions > Transactions Summary > (B) Open
In Receivables, Tax Adjustments can be made in the Transactions or Transactions Summary
window.
The profile option, Tax: Allow Override of Tax Code, permits changing an automatically
generated tax code. Oracle Receivables displays the new tax rate and amount.
If you use AutoAccounting, rerun the Review Accounting after changing the tax code to update
your tax account for this invoice line.

Adjusting Tax on Invoices
Adjustment
entry with
Receivables
Activity
Approval limit
$500
Validation
Approved
process
or Pending

(N) > Transactions > Transactions Summary > (B) Adjust
Receivables activities for tax adjustments must be set up first.
• When you create a tax adjustment Oracle Receivables automatically verifies that it is
within your adjustment approval limits.
- If within your assigned approval limit for the currency of that item, Oracle
Receivables updates your customer’s balance to reflect the adjustment.
- If outside your approval limits, Oracle Receivables creates a pending adjustment
with a status of Pending Approval which will need to be approved by a higher level
employee with the proper approval limit.
• Any adjustments that have been applied to the tax lines of an invoice and cannot be
claimed from the state, should use a receivables activity where tax is not posted to a sales
tax liability account (for example, bad debt write-offs of sales tax amounts).
• If using a tax partner and the option for posting adjustments to the tax partner is selected
in the Receivables Activities window:

- Adjust tax amounts to reconcile to tax partner reports.
- Post only approved adjustments of type Tax to tax partner reports.
Note: For more information, refer to the "Adjust the Invoice" section in the Integrating Oracle
Receivables with Taxware Sales/Use Tax System or Integrating Oracle Receivables with Vertex
Quantum user guides.

Tax Credit Memo
Tax Credit Memo
Credit Customer
Memo Account
OR
Amount Percent
Tax Credit Memo

Tax Credit Memos can be entered from the Credit Transactions or Transactions Summary
window, or by selecting the Credit Lines and entering individual credit lines.
• The credit can be either an amount or tax percentage.
• When crediting lines individually, the tax for the item line will automatically calculate,
just as it would if you entered transaction lines.

Guided Demonstration - Enter a Tax Adjustment
(N) > Setup > Transactions > Adjustment Limits
1. Query up Username: Operations
2. Verify Adjustment Limits are setup for Document Type Credit Memo.
3. If not, enter the following information:

− Username: Operations
− Document Type: Credit Memo
− Currency: USD
− From Amount: -999
− To Amount: 999
4. (I) Save
5. (N) > Transactions > Transactions Summary > (I) Flashlight
6. Find Transaction Number 10007249 or 10007284.
7. (B) Adjust

− Activity: Line Adjustment
− Type: Tax
− Amount: -50
9. (I) Save
10. (M) Tools > View Accounting
Review the accounting entry the adjustment creates.

Agenda
Agenda


Tax Reporting Ledger Overview
Global Tax Management
General Ledger
Receivables
RXi
Tax Registers Reporting
Payables

Oracle Applications simplifies global tax management by providing a single cross-product Tax
Reporting Ledger.
• Tax Reporting Ledger produces a single report of all your taxable sales and purchase
documents across Oracle Receivables, Oracle Payables, and Oracle General Ledger.
• The Tax Reporting Ledger can be used in conjunction with any reporting tool, including
RXi and Application Desktop Integrator for Variable Format Reports.
• The following tax registers are supported:
- Single Cross-Product Tax Register.
- Standard Input and Output Tax Registers.
- Deferred Output Tax Register.
- Recoverable and Non-Recoverable Tax Registers.

Tax Extract Overview

Oracle
RXi RX
Reports
Calls
Payables
Documents Tax
Extract
Receivables
Documents Populates
General Ledger Interface Table

Tax Journals
Global Descriptive RXi Attribute

Tax
Flexfields Sets
Formats Report

The Tax Extract finds all taxed transaction details from any of the sources, summarizes this
information, and records a copy in the interface table for reporting. Information from
designated global descriptive flexfields is also copied into the interface table.
The interface table is a standard RXi extract format that allows RXi, Oracle Reports, or any
client program to access the data using a simple query.
The Tax Extract can be called from several sources, including Oracle Reports and RX and
RXi-enabled concurrent programs:
• Financial Tax Register: The Financial Tax Register uses the RXi reporting tool to
generate tax register reports with the Tax Extract data. This version runs both the extract
and the publishing steps together. Available attribute sets:
- DEFAULT (Tax Register) - Reporting on Receivables and General Ledger
transactions
- ATTRSET2 (Tax Register with Tax Recovery) - Reporting on Payables
transactions
- User-defined

• RX-Only: Financial Tax Register: Data Extraction only version. Requires using Publish
RX Reports to produce the report.

Sources of Data
Sources of Data
Payables Receivables Other
• Standard • Invoices, credit and • General Ledger

invoices debit memos manual journal
• Prepayments • Line, tax, and invoice entries
• Credit and adjustments • Global
debit memos • Payment applications descriptive
• Expense for deferred tax flexfields
report • Earned and unearned
invoices discounts
• Finance charges
• Miscellaneous
receipts and
payments
• Bills receivable
Sources of Data
Global descriptive flexfields store country or region-specific information that is extracted into
the Tax Reporting Ledger through the Tax Extract, letting you include country/region-specific
information in country/region-specific formats.

Tax Ledger Reporting Options
Set Reporting Level on the MO: Top Reporting Level

Profile Options with the following Reporting Contexts
to achieve the desired Tax Ledger Report Content.
Reporting Level Reporting Context Report Content
Set of Books Set of books defaults All operating units

in the set of books
Legal Entity Select legal entity All operating units

in your legal entity
Operating Unit Select operating unit Only the operating

unit associated with
your responsibility

The MO: Top Reporting Level profile option and the Reporting Context (Parameters) on the
Reports are used to meet both Multiple Organization and Cross Product reporting
requirements.
The MO: Top Reporting Level profile option determines which reporting levels are available
for a particular responsibility when reporting across multiple organizations. Available values
include: Set of Books, Legal Entity, and Operating Unit.
• To create reports across multiple organizations, use the Reporting Level and Reporting
Context parameters to determine the report content.
- For Oracle Applications Multiple Organization Support feature, the Reporting
Level parameter defaults to Operating Unit.
- For others, it defaults to Set of Books.
• To create cross-product reports with information from Oracle Payables, Oracle
Receivables, and Oracle General Ledger, enter ALL in the Product parameter.
• To create report across operating units and products, use the Product parameter along
with the Reporting Context parameters and the MO: Top Reporting Level profile option
to control content.

Matrix Reporting
Matrix Reporting
Show a single line in the Tax Reporting

Ledger for two or more tax amounts.
Input Tax Output Tax
Up To Two Taxes split Up to Four Taxes

between Recoverable and
Non-Recoverable
Matrix Reporting
Use Matrix Reporting to show a single line in the Tax Reporting Ledger for two or more tax
amounts.
• Supports countries with multiple taxes.
• Groups up to four output taxes on a single line.
• Shows both recoverable and nonrecoverable input tax amounts on the same report line for
up to two input taxes.
To enable Matrix Reporting, use the Matrix Report Flag parameter on the Tax Reporting
Ledger.

RXi Report Steps
RXi Report Steps
Design content and Extract Data

layout of reports
Meet reporting Publish reports in

requirements different formats
RXi Report Steps

The RXi Report Administration Tool is used to design content layout of reports and then
publish the report with the designed layout to meet reporting requirements. Steps are:
• Design content and layout of reports by selecting the RX-only report and then, copying
and modifying the existing attribute set using the columns available.
• Extract the data into the interface table which results in an RX-only file, and then print
(publish) the data that was extracted.
• Publish reports in different formats using different attribute sets.

Modifying Attribute Sets
Displayed
columns
Page Column Details

Formatting

Use the Attribute Set window to change a new attribute set that you have just copied or to
modify an existing attribute set that you previously defined.
Displayed Columns
In the Displayed Columns tab, the Available list box displays all columns that are available for
this report but not currently included in the report output. The Displayed list box displays the
report columns that are included in the report output. There are more than 600 available
columns for the Tax Reporting Ledger. Use the Default Format tab to define how date and time
values should be displayed in the report.
Available Column Groups
Extract Reporting Entity Reporting Context
Legal Entity Transaction Header Level Billing
Shipping Banking Receivables Transactions
Taxable Amounts Taxable Line fields Tax Amounts
Tax Line fields, including Tax Code and Tax Rate Total Amounts

Payables Tax Line Receivables Tax Line Transaction Line User
Descriptive Flexfield Accounting Miscellaneous
Column Details
Use the Column Details window to define formatting attributes for individual columns in a
report. All changes are optional and depend on your reporting needs.
Page Formatting
Enter title, page size, heading information, and grouping levels.

Defining Summary Details
Use the Summary Details window to define columns as

summary columns in a report.
Page Total
Running Page Total
Previous Page Total
Report Total

A summary column is a column whose values are either summed or counted. You can
designate the summed and counted levels printed, and you can rename the default summary
prompts.
The Summary Details window displays the report summary levels and the column grouping
levels for the column that you select in the Column Details window.
The report summary levels are:
• Page Total Sum: The sum or count of records on the current page printed at the bottom of
the page
• Running Page Total: The sum or count of records up to and including the current page
printed at the bottom of the page
• Previous Page Total Sum: The sum or count of records up to but not including the current
page printed at the top of the page
• Report Total Sum: The sum or count of records in the entire report. The grouping levels
displayed in the Summary Details window are all grouping levels up to, but not
including, the grouping level for the selected column.

Publish RXi Reports
Publish RXi Reports
Select Publish Report Add Attribute

Set
View Output Submit
Publish RXi Reports

Use the Publish RX Reports concurrent program to print RXi report output. You can generate
an RXi report with its default attribute set, or with an attribute set that you defined in the
Attribute Set window. The report is created according to the layout definition of the attribute
set that you specified. You can create reports in text, HTML, CSV, or tab-delimited format.
Submitting the Request
Use the the Submit Request window or the ReQuest Center in Application Desktop Integrator
(ADI) to submit the RXi report and the Publish RX.
• If you run the RXi report and the Publish RX Reports concurrent program together in one
step, the Attribute Set and Output Format parameters are included in the list of RXi report
parameters.
• If you need to submit the Publish RX Reports concurrent program separately after you
run the RXi report, use the Requests window to obtain the RXi report request ID.

Guided Demonstration - Define Tax Register
Responsibility: Report eXchange Designer
(N) > Setup RXi
1. In the Report Name selected the RX-only: Financial Tax Ledger report from the list of
values.
The system displays the default attribute sets associated with the report.
2. Select the Copy Attribute Set button to open the Copy Attribute Set window.
3. Enter Copy to Attribute Set: Demo Set
4. Enter Short Name: Demo
5. (B) OK
6. Select Billing Partner Name.
7. Click the Remove from Display arrow key.
Remove columns not wanted in the final report output.
8. Select AR Trans Posting Status in the Available region.
9. Select the Add to Display arrow key.
All the columns in the Available region can be added to the Displayed columns.
10. Select the plus button twice to change the grouping levels for the AR Trans Posting Status.
The minus button is used to reduce grouping levels.
The up and down arrow button move columns within each grouping level.
11. (I) Save > (B) Column Details
12. Changed the Attribute name of FUNCTIONAL_CURRENCY to Our Company’s Currency.
13. Select the TRX_NUMBER column.
14. (B) Count Detail.
15. Select to count transactions by Running Page Count Display check box.
16. (B) OK

17. Select the TAXABLE_ACCOUNTED_AMOUNT.
18. (B) Sum Detail
19. Select the Running Page Total Display check box.
20. (B) OK > (B) OK
21. Select the Page Setup tab.
22. Change the Report Title to Receivables Tax Register.
23. Select the Default format tab.
24. Enter the Default Date Format: MM/DD/YYYY
25. (I) Save.

Guided Demonstration - Run Tax Register
Responsibility: Report eXchange Designer
(N) > Reports > Tax > Single Request > (B) OK
1. Selected the Financial Tax Register.
2. Enter Parameters
− Attribute Set: Demo Set
− Output Format: Text,
− Reporting Level: Operating Unit
− Reporting Context: Vision Operations
− Register Type: Tax Register
− Tax Class Output
− Summary Level: Transaction Level
− Product: AR
− GL Date Low: 01-Jan- 2001
− GL Date High: 31-Mar-2001
3. (B) OK > (B) Submit > (B) No
4. (M) View > Requests > (B) Find
5. Select Financial Tax Register
6. (B) View Output
The RXi reports run two processes, one to create the data file and the other to create the
report. These processes can be run together as in this demo or separately. After the first
process to load the data has been run, an unlimited number of Attribute Sets can be applied
to it to provide different versions of the data by running the Publish RXi reports.

Managing Access to RXi Reports and Attribute Sets
Managing Access
to RXi Reports and Attribute Sets
To limit user access to RXi reports, perform the
following tasks:
• Assign each RXi report to a request group.
• Assign the request group to one or more
responsibilities.
• Assign each RXi report attribute set to a
responsibility.
Managing Access to RXi Reports and Attribute Sets

User access to RXi reports means that a user also has access to any data retrieved into the
interface table by RXi reports.
Because an attribute set controls the content of the report output, you must assign attribute sets
to a responsibility if you want to restrict data access.
• Use the Define Security window in the Report eXchange Designer responsibility to
assign RXi report attribute sets to a request security group.
• The request security group can then be assigned to one or more responsibilities.
• If you define a new attribute set, by default this attribute set is available to all users who
have access to the associated report.
• However, if you link this attribute set to a particular responsibility, then only that
responsibility can access the attribute set and use it when publishing reports.
• By default, the Attribute Set window and the Purge RX Interface Data concurrent
program available only from the Report eXchange Designer responsibility.

Summary
Summary

• Define General Tax Setup Steps
• Enter Tax Adjustments
• Explain Tax Reporting Ledger


Period Closing Process
Chapter 17

Chapter 17 - Page 1

Chapter 17 - Page 2
Objectives
Objectives

do the following:
• Define the various actions required to close a period in
• Describe the available reports to assist in the closing
process
• Explain how to run the Revenue Recognition program
and the General Ledger interface program

Chapter 17 - Page 3
At the end of each accounting period, companies

must complete the closing process.
Review, balance, Complete the Review the Post journal

and reconcile transfer to the transfer results, entries in GL
Receivables and General Ledger and correct
Inventory transfer issues
transactions

Accounting information is transferred from Inventory and Receivables to the General Ledger.
The Order Management and Cash Management applications do not send information directly
to the General Ledger. It is sent to other applications which then transfer it to the General
Ledger.

Chapter 17 - Page 4
Overview of Ordering to Period Closing

Ordering
Post Journal
Entries Shipping
Transfer Sales
Transfer to G/L Order
Decrement
Accounting
Inventory
Information
Review
Invoices and
Reconcile
Receipts
Run Reports

This is an example of the flow of sales orders to the General Ledger. Some orders may not
follow the complete cycle or may come from other applications.
The orders in the example are shipped, inventory is decremented, they are invoiced and
receipts are posted. To finish the process and close the period, they must be reviewed and
transferred to the General Ledger.

Chapter 17 - Page 5
Standard Reports
Standard Reports
• Inventory and Receivables provide a comprehensive

set of reports and listings
• Use these reports to review and reconcile transactions,
receipts, journals, and customer balances
Standard Reports
Manufacturing and Distributions Manager, Vision Operations (USA)
(N) > Reports
(N) > Reports
Reports can be run as a concurrent process from the Submit Requests window.
Use these reports when needed to review activity at any time during the month.

Chapter 17 - Page 6
Reconciling Inventory Transactions
Use the Material Account Distribution Detail or Summary

Report to:
• View the accounts charged for inventory
transactions
• Reconcile to the inventory accounting transferred to
the General Ledger

(N) > Reports > Transactions

Chapter 17 - Page 7
Reconciling Receivables Transactions, Receipts, and Customer
Balances
Reconciling Receivables Transactions,

Receipts, and Customer Balances
Reconcile Reconcile Reconcile
transactions outstanding transaction and
and receipts customer balances receipt accounting
flexfield balances
Opening balance
+ Transactions
- Receipts
= Closing balance
• Sales Journal by • Sales Journal

customer by GL Account
• Transaction • Journal Entries
register Report
• Receipt register • Receipts Journal
Submit GL Report
Interface process
Reconciling Receivables Transactions, Receipts, and Customer Balances

(N) > Reports > Accounting
Use the AR Reconciliation Report to start the reconciliation process. It will provide a
summary of your customer, transaction, receipt, and account balances for the period that you
specify. It can give you a starting point to identify areas that need research. Use these reports
to get the detailed information:
• Sales Journal By Customer – Use to review all transactions.
• Transaction Register – Use to check that all items that can be posted are reflected on the
Sales Journal. The Sales Journal balance should match the total of the transactions here
after adding the credit memo total twice (because it is a negative on the Transaction
Register and a positive on the Sales Journal).
• Receipts Register – Use to review a list of receipts.
• Sales Journal By GL Account – Use to ensure that the Transaction Register matches the
Sales Journal.

Chapter 17 - Page 8
• Journal Entries Report – Use to review the details that make up the general ledger journal
entries.
• Receipts Journal Report – Use to review details of receipts that appear in the Journal
Entries report.
• Aging Report – Use the last day of the prior month to get the outstanding opening
balance.
• Transaction Detail Report – Use to identify transactions that increase the outstanding
opening balance.
• Adjustments Register – Use to identify any adjustments that affect the transactions for the
month.
• Unapplied Receipts Register – Use to determine customer balance after taking into
account all on-account and unapplied amounts
• Applied Receipts Register – Use to identify receipts that reduce the outstanding opening
balance.
• Invoice Exceptions Report – Use to identify transactions that reduce the outstanding
opening balance. This report shows all transactions where the Open Receivables flag is
set to No. Therefore, the transactions do not display on the aging but do show in the
Transaction Register. This can occur when an item can be ordered in Order Management
but not invoiced, such as an internal item.

Chapter 17 - Page 9
Running Revenue Recognition
Revenue Invoices with Total Revenue Percent of

Recognition Accounting for Invoice Revenue
program Rules Recorded

(N) > Control > Accounting > Revenue Recognition
The revenue recognition program will automatically run prior to the General Ledger transfer
process. You can run the Revenue Recognition program manually at any time as well. The
program is run to generate the revenue recognition schedule for invoices with accounting rules.
Distributions are created and will pass to the General Ledger during the appropriate accounting
period. This is an essential process in accrual-based accounting.

Transferring to the General Ledger
Unposted Items
Transactions Report
out of balance
Submit GL Interface
program
GL Interface
Table
Transactions in Posting
balance Execution Report

(N) > Accounting Close Cycle > General Ledger Transfers
The General Ledger Interface program populates the GL_Interface tables with Oracle
Inventory transaction data. The data is transferred in detail to the interface table. Detail vs.
summary format, is how data is pulled into GL. The GL dates are used to specify the data to
be transferred. The General Ledger Interface automatically runs when the period is closed.
The transactions may not balance if:
• Transfers from Order Management are not completed before closing or totally fail when
imported.
• The General Ledger account is changed to an invalid number before transfer.
• Other General Ledger Journal Entries are entered that affect the Inventory accounts
• Reports are run prior to all activity being completed
(N) > Interfaces > General Ledger

The General Ledger Interface program populates the GL_Interface tables with Oracle
Receivables transaction data. The data can be transferred in detail or summary format. The
GL start and end dates are used to specify the range of data to be transferred.
The General Ledger Interface produces an execution report that shows the total debits and
credits transferred from Receivables into the GL Interface table. Compare this report to the
Sales Journal and Receipts Journal totals to verify that they match.
The transactions may not balance if:
• Reports are run with different date ranges
• The General Ledger account is changed to be invalid before the transfer
• Other General Ledger Journal Entries affect the Receivable accounts

Running the Journal Import Program
GL Run Journal Journal Post journal

interface Import from entries to entries in GL
table AR or from be posted to update
GL account
balances

The journal import program takes the information from the GL Interface table and populates
the GL_JE_BATCHES, GL_JE_HEADER, and GL_JE_LINES tables. The journal import
program may be run automatically from AR by selecting Yes to Run Journal Import in the GL
Interface window. It is normally run by personnel in the General Ledger application. The
journal entries that were created by the import program must be posted to update the account
balances.

Mapping Receivables Transactions to General Ledger Categories
Mapping Receivables Transactions

to General Ledger Categories
Oracle Receivables Transactions
Transaction Type Category in General Ledger
Debit Memos Debit Memos
Credit Memos Credit Memos and Credit
Memo Applications
On-Account Credits Credit Memos
Invoices Sales Invoices
Chargebacks Chargebacks
Receipts Trade Receipts
Adjustments Adjustments
Guarantees Sales Invoices
Miscellaneous Transactions Miscellaneous Receipts
Deposits Sales Invoices
Mapping Receivables Transactions to General Ledger Categories

If you experience reconciliation issues between transactions and categories use this map to
check your setup information.

Summary
Summary
In this module, you should have learned how to do

the following:
• Define the various actions required to close a period
in the Order to Cash eBusiness flow
• Describe the available reports to assist in the closing
process
• Explain how to run the Revenue Recognition program
and the General Ledger interface program


Bank Reconciliation
Chapter 18
Bank Reconciliation
Chapter 18 - Page 1
Bank Reconciliation
Bank Reconciliation
Chapter 18 - Page 2
Course Objectives
Bank Reconciliation
Chapter 18 - Page 3
Course Objectives
Bank Reconciliation
Chapter 18 - Page 4
Agenda
Bank Reconciliation
Chapter 18 - Page 5
Agenda
Bank Reconciliation
Chapter 18 - Page 6
Reconciliation Overview
Bank Reconciliation
Chapter 18 - Page 7
Reconciliation Integration
Bank Reconciliation
Chapter 18 - Page 8
Oracle Receivables and Payables
Bank Reconciliation
Chapter 18 - Page 9
Oracle General Ledger and Payroll
Bank Reconciliation
AutoReconciliation Overview
(Help) Oracle Financial Applications > Oracle Cash Management > Reconciling Bank
Statements > Automatic Reconciliations
Bank Reconciliation
Agenda
Bank Reconciliation
Setting Up Oracle Cash Management and Related Products
(Help) Oracle Financial Applications > Oracle Cash Management > Setting Up Cash
Management > Overview of Setting Up
Bank Reconciliation
Practice - Set up a Bank Account
Overview
Set up a bank account in Oracle Cash Management
Assumptions
Practice.
Tasks
Set up the following bank account in Oracle Cash Management:
•Bank Name: Your last name
•Bank Branch Name: Your first name
•Bank Address: Any address you want
•Account Type: Check
•Account Use: Internal
•Currency: USD
•Document Name: Your terminal ID and your initials
•Disbursement Type: Combined
•Payment Format: Standard Check Format
•Payment Method = Check
•Last Used: 0
•Last Available: 100
•Setup: 0
Bank Reconciliation
•Clearing Days: 0
•GL Accounts:
•Cash: 01-000-1110-0000-000
•Cash Clearing: 01-000-1250-0000-000
•Bank Charges: 01-110-7870-0000-000
•Bank Errors: 01-110-7740-0000-000
•Confirmed Receipts: 01-000-1250-0000-000
•Remitted Receipts: 01-000-1245-0000-000
•Factored Receipts: 01-000-1245-0000-000
•Short Term Debt: 01-000-2110-0000-000
•Unapplied Receipts: 01-000-1240-0000-000
•Unidentified: 01-000-1110-0000-000
•On Account Receipts: 01-000-1240-0000-000
•Earned Discounts: 01-110-7825-0000-000
•Unearned Discounts: 01-110-7825-0000-000
Bank Reconciliation
Solution - Set up a Bank Account
Repeat task title from Task section above or summarize the task if you used Task
1 format.
Responsibility = Order Management Super User , Vision Operations
1. Navigate to the Banks window:
2. (N) Setup->Payment->Banks
3. In the Bank Name field, enter your last name as the bank name.
4. In the Bank Branch Name field, enter your first name as the bank branch name.
5. In the Institution field, select Bank.
6. In the Description field, enter a description for your bank.
7. In the Type field, select ABA.
8. Select the Address alternative region.
9. Enter a street address, city, state, and postal code for your bank.
10. Save your work.
11. Click Bank Accounts.
12. In the Bank Accounts Name field, enter a name for your bank account. This is the account
name that you will later see in your list of values.
13. In the Bank Accounts Number field, enter your terminal ID as the bank account number.
14. In the Account Use field, select Internal.
15. In the Currency field, select USD.
16. Select the GL Accounts alternative region.
17. Enter the GL account numbers.
18. Select the Receivables Options alternative region.
19. Enter the GL accounts for the Receivables Options region.
20. Select the More Receivables Options alternative region.
21. Enter the GL accounts for the More Receivables Options region.
Bank Reconciliation
22. Save your work.
23. Click Payables Documents to enter your document information.
24. Enter the document name of Computer/Manual.
25. In the Disbursement Type field, select Combined from the list of values
26. For the Payment Format field, select Standard Check Format.
27. In the Payment Method field, select Check.
28. Select the Additional Information alternative region.
29. In the Last Used field, enter 0 (zero).
30. In the Last Available field, enter 100.
31. In the Clearing Days field, enter 0 (zero).
32. Save your work.
Bank Reconciliation
Bank Reconciliation
Setting Up Oracle Cash Management System Parameters
Management > System Parameters
Bank Reconciliation
Practice - Set up Classes and Payment Methods
Overview
• In this practice you will set up two classes/payment methods:
− One for customer-related receipts,
− One for miscellaneous transactions
Assumptions
Practice.
Tasks
In Oracle Receivables, set up two classes/payment methods.
1. For customers-related receipts:
-Your receipt class name: “Your Initials”-PM
-Creation Method: Manual
-Remittance Method: Standard
-Clearance Method: By Matching
-Payment Method: “Your Initials”-Payment
2. For miscellaneous transactions:
-Your receipt class name: “Your Initials”-Misc
-Creation Method: Manual
-Remittance Method: No Remittance
-Clearance Method: By Matching
-Payment Method: “Your Initials”-Misc
Bank Reconciliation
Solution – Set up Classes and Payment Methods
In Oracle Receivables, set up two classes/payment methods: one for customers-
related receipts and one for miscellaneous transactions.
1. Switch your responsibility to Oracle Receivables.
2. Navigate to the Receipts Classes window:
• (N) Setup—>Receipts—>Receipt Classes
3. In the Name field, enter “Your Initials”-PM.
4. In the Creation Method field, select Manual.
5. In the Remittance Method field, select Standard.
6. In the Clearance Method field, select By Matching.
7. In the Payment Method Name field, enter “Your Initials”-Payment.
9. In the Bank Name field, select your bank from Practice 1.
10. In the Account Name field, select your account name from Practice 1.
11. The system displays the GL accounts.
12. Save your work.
Navigate to the Receipts Classes window to set up the class/payment method for
miscellaneous transactions:
13. 17.(N) Setup—>Receipts—>Receipt Classes
14. In the Name field, enter “Your Initials”-Misc.
15. In the Creation Method field, select Manual.
16. In the Remittance Method field, select No Remittance.
17. In the Clearance Method field, select By Matching.
18. In the Payment Method Name field, enter “Your Initials”-Misc.
Bank Reconciliation
20. In the Bank Name field, select your bank from Practice 1.
21. In the Account Name field, select your account name from Practice 1.
22. The system displays the GL accounts.
23. Save your work.
Bank Reconciliation
Setting Up Bank Transaction Codes
Management > Bank Transaction Codes
Bank Reconciliation
Practice - Set up Bank Transaction Codes
Overview
In this practice you will set up bank transaction codes for your bank from practice “Set up a
Bank Account”.
Assumptions
Practice.
Tasks
In Oracle Cash Management, set up bank transaction codes for your bank from
Practice “Set up a bank account”.
1. Your bank transaction codes are:
• Misc Payment = 100
• Misc Receipt = 200
• NSF = 300
• Payment = 400
• Receipt = 500
• Rejected = 600
• Stopped Payments = 700
Bank Reconciliation
Solution – Set up Bank Transaction Codes
In Oracle Cash Management, set up bank transaction codes for your bank from
Practice “Set up a bank account”.
1. Switch your responsibility to Oracle Cash Management.
2. Navigate to the Bank Transaction Codes window:
• (N) Setup—>Bank Transaction Codes
3. In the Find Bank Account window, select your bank account from Practice 1.
4. In the Bank Transaction Codes window, enter transaction types and codes.
5. Save your work.
Bank Reconciliation
Bank Reconciliation
Agenda
Bank Reconciliation
Bank Statement Open Interface
Management > Bank Statement Open Interface
Bank Reconciliation
Bank Reconciliation
(Help) Oracle Financial Applications > Oracle Cash Management > Loading Bank Statements
> Loading Bank Statement Open Interface
Bank Reconciliation
Importing Bank Statements
Bank Reconciliation
Bank Statement Validation
> Importing Bank Statements > About Bank Statement Validation
Bank Reconciliation
Bank Statement Interface Errors
> Reviewing Bank Statement Interface Errors
Bank Reconciliation
Setup for Bank Statement Open Interface
Management > Bank Statement Open Interface
Bank Reconciliation
Agenda
Bank Reconciliation
Entering Bank Statements Manually
Bank Reconciliation
Entering Bank Statement Information Manually
Bank Reconciliation
Agenda
Bank Reconciliation
Archiving and Purging
Statement > Manually Clearing and Unclearing > Archiving and Purging Imported Bank
Statements
Bank Reconciliation
Archiving and Purging Automatically
Bank Reconciliation
Agenda
Bank Reconciliation
Reconciling Bank Statements Automatically
Bank Reconciliation
Agenda
Bank Reconciliation
Reconciling Bank Statements Manually
Statements > Manual Reconciliation
Bank Reconciliation
Creating Miscellaneous Transactions
Bank Reconciliation
Recording a Bank Transmission Error
Bank Reconciliation
Recording Transactions from External Systems
Bank Reconciliation
Reconciliation Open Interface
Management > Reconciliation Open Interface
Bank Reconciliation
Agenda
Bank Reconciliation
Manually Clearing and Unclearing
Bank Reconciliation
Practice - Enter, Format, and Approve Receipts
Overview
• In this practice you will enter, format, and approve receipts in Oracle Receivables.
Assumptions
Practice.
Tasks
Enter, format, and approve the following receipts in Oracle Receivables:
Responsibility = Order Receivables Super User, Vision Operations (USA)
Customer Name: Any customer
Receipt Type: Cash
Currency: USD
Receipt Date: Today
GL Date: Today
XX = Your Initials
Receipt # Receipt Amount
XX-1 3,000
XX-2 4,000
XX-3 5,000
Bank Reconciliation
Solution – Enter, Format, and Approve Receipts
Enter, format, and approve the following receipts in Oracle Receivables:
Responsibility = Order Receivables Super User, Vision Operations (USA)
Step 1: Entering Receipts
1. Switch your responsibility to Oracle Receivables.
2. Navigate to the Receipts window:
• (N) Receipts—>Receipts
3. In the Receipt Number field, enter “Your Initials”-1.
4. In the Currency field, accept the default currency.
5. In the Receipt Date field, accept the default date.
6. In the Payment Method field, select the customers-related payment method that you
created in Practice 2.
7. In the Customer Name field, select a customer from the list of values.
8. Save your work.
9. Repeat the above steps for the two remaining receipts.
Step 2: Entering and Approving Remittance Batches
1. Navigate to the Remittances window:
• (N) Receipts—>Remittances
2. In the Batch Type field, select Remittance.
3. Accept the default batch and GL dates.
4. In the Remittance Method field, select Standard.
5. In the Receipt Class field, select your customers-related receipt class from Practice 2.
6. In the Payment Method field, select your receipt class from Practice 2.
7. Leave the Media Reference field blank.
8. In the Deposit Number field, enter your birthday as the deposit number. This is a very
important step. If you want to enter another number, please write down the deposit number.
Bank Reconciliation
9. Click Manual Create to open the Maintain Remittance Receipts Batch window.
10. With the cursor in the Payment Method field of the Receipt region, query your receipt
numbers.
11. Select the check boxes to the left of your receipt numbers.
12. Click Format to approve and format your batch.
Bank Reconciliation
Clearing and Reconciling Transactions in Oracle Payables
Bank Reconciliation
Clearing and Reconciling Transactions in Oracle Receivables
Bank Reconciliation
Transferring Entries to Your General Ledger
Bank Reconciliation
Agenda
Bank Reconciliation
How to Record Exceptions
Statements > Recording Exceptions
Bank Reconciliation
How to Record Exceptions
Bank Reconciliation
Handling NSF or Rejected Receipts Manually
Bank Reconciliation
Recording a Stopped Payment
Bank Reconciliation
Recording a Direct Debit from a Supplier
Bank Reconciliation
Practice - Enter, Approve, and Pay Invoices
Overview
• In this practice you will enter, approve, and pay invoices in Oracle Payables.
Assumptions
Practice.
Tasks
Enter, approve, and pay the following invoices in Oracle Payables:
Responsibility = Order Payables Super User, Vision Operations (USA)
Supplier Name: Ask your instructor.
XX = Your Initials
Invoice # Invoice Amount GL Account
XX-1 1,500 01-110-7110-0000-000
XX-2 2,500 01-110-7110-0000-000
XX-3 3,500 01-110-7110-0000-000
Bank Reconciliation
Solution – Enter, Approve, and Pay Invoices
Enter, approve, and pay the following invoices in Oracle Payables:
Responsibility = Order Payables Super User, Vision Operations (USA)
1. Step 1: Entering Invoices
• Switch your responsibility to Oracle Payables.
2. Navigate to the Invoices window:
• (N) Invoices—>Entry—>Invoices
3. In the Supplier field, enter the supplier name. Oracle Payables displays the supplier number.
4. In the Site field, enter the site name.
5. In the Invoice Date field, accept the default date.
6. In the Invoice Number field, enter “Your Initials”-1.
7. In the Invoice Amount field, enter 1,500.
8. Click Distributions to open the Distributions window.
9. In the Amount field, enter 1,500.
10. In the Account field, enter the GL account.
11. Save your work.
12. Repeat above steps to enter invoices 2 and 3.
13. Save your work.
Step 2: Approving Invoices
1. To approve invoices, select all invoices:
• (M) Edit—>Select All
2. Click Actions to open the Invoice Actions window.
3. Select the Approve check box.
4. Select OK.
Bank Reconciliation
Step 3: Paying Invoices
1. In the Invoices window, select the first invoice.
2. Click Actions to open the Invoice Actions window.
3. Select the Pay in Full check box.
4. Click OK. Oracle Payables displays the Payments window.
5. In the Type field, select Quick.
6. In the Bank Account field, enter your bank account from Practice 1. Oracle Payables
displays your document name in the Document Name field.
7. In the Payment Amount field, enter the invoice amount.
8. Click Actions. Oracle Payables displays the Payment Actions window.
9. Select the Format check box.
10. Click OK.
11. Navigate to the Invoices window and repeat the above steps for the two remaining invoices.
Bank Reconciliation
Entering Reversals
Bank Reconciliation
Reconciling Corrections and Adjustments to Bank Errors
Bank Reconciliation
Practice - Reconcile Bank Statements
Overview
• In this practice you will reconcile a monthly statement that your bank has sent you.
Assumptions
Practice.
Tasks
Your bank has sent you the monthly statement. Enter the information to Oracle
Cash Management.
“Your Bank Account” Statement
123 Main St.
San Jose, CA 95014
Beginning Balance = 5,000
Transaction Date Transaction Number Description Amount Balance
Current Date Your Birthday Deposit 12000 17000
Current Date 1 Payment 1500 15500
Bank Reconciliation
Ending Balance = 9,500
Bank Reconciliation
Solution – Reconcile Bank Statements
Your bank has sent you the monthly statement. Enter the information to Oracle
Cash Management.
1. Switch your responsibility to Oracle Cash Management.
2. Navigate to the Reconcile Bank Statements window:
• (N) Bank Reconciliation—>Bank Statements
3. Close the Find Bank Statements window.
4. In the Reconcile Bank Statements window, click New. Oracle Cash Management opens the
Bank Statement window.
5. In the Account Number field, enter your bank account number from Practice 1.
6. In the Date field, enter today’s date (DD-MMM-YYYY).
7. In the Statement Number field, accept the default.
8. In the Control Totals region, enter the information based on your bank statement.
9. Click Lines to open the Bank Statement Lines window and enter bank transactions.
10. In the Line Number field, enter 1.
11. In the Type field, select Receipt.
12. In the Code field, select the transaction code.
13. In the Number field, enter the transaction number (your birthday).
14. In the Amount field, enter 12,000.
15. Follow the above steps for entering bank payments in the next three lines.
16. Save your work.
Bank Reconciliation
AutoReconciliation Matching
Bank Reconciliation
Reversal Method
Bank Reconciliation
Adjustment Method
Bank Reconciliation
Manual Reconciliation Matching
Bank Reconciliation
Agenda
Bank Reconciliation
Value Date Support
Statements > Automatic Reconciliation > About Value Dates
Bank Reconciliation
Value Date Support in Oracle Payables and Oracle Receivables
Bank Reconciliation
Value Date Derivation in Applications
Bank Reconciliation
Selection Hierarchy for Value Date Support
Bank Reconciliation
Business Benefits of Value Date Support
Bank Reconciliation
Agenda
Bank Reconciliation
Oracle Cash Management Reports
Bank Reconciliation
Archive/Purge Bank Statements Report
Bank Reconciliation
AutoReconciliation Execution Report
Bank Reconciliation
Bank Statement Detail Report
Bank Reconciliation
Bank Statement Summary Report
Bank Reconciliation
Bank Statements by Document Number Report
Bank Reconciliation
GL Reconciliation Report
Bank Reconciliation
Cash in Transit Report
Bank Reconciliation
Cleared Transactions Report
Bank Reconciliation
Transactions Available for Reconciliation Report
Bank Reconciliation
Bank Transaction Codes Listing
Bank Reconciliation
Summary
Bank Reconciliation
Summary
Bank Reconciliation
Overview of Credit
Management
Chapter 19
Overview of Credit Management

Chapter 19 - Page 1
Overview of Credit
Management

Chapter 19 - Page 2
Objectives
Objectives

do the following:
• Setup for credit management
• Demonstrate credit profile changes
• Identify credit management processing
• Use workflow and lookups
• Review credit management performance
• Apply credit hierarchy

Chapter 19 - Page 3
Agenda
Agenda
• Setting up for credit management

• Identifying credit management processing
• Using workflow and lookups
• Reviewing credit management performance
• Applying credit hierarchy

Chapter 19 - Page 4
Set Up Oracle Credit Management
During setup, you define your credit policies that

determine the data used for analysis, the credit scores
that are calculated, and the credit recommendations
that are made.

Credit policies are uniquely identified by the type of credit reviews that you perform at your
enterprise, as well as by the credit relationships that you have with your customers and
prospects. These two dimensions, known as the credit review type and credit classification,
constitute the foundation upon which Oracle Credit Management is based.
To set up Credit Management, you must:
Define credit analysts
Assign credit analysts to accounts
Define Credit Management lookups
Define Credit Management system options
Define scoring models
Assign automation rules (optional)
Define checklists
Verify usage rules
Define the credit hierarchy for your customers and prospects

Chapter 19 - Page 5
Define Credit Analysts
You use Resource Manager to enter information about

the credit analysts in your enterprise. Credit analysts
assist in the resolution of credit–related issues and
evaluate the creditworthiness of your customers and
prospects.
Two seeded roles exist for Credit Management:
Credit Analyst Credit Manager

Before you can define credit analysts in Resource Manager, you must first define them as
employees in Oracle Human Resources Management System (HRMS). Later, when you are
ready to define your credit analysts, you import employees from HRMS into Resource
Manager and assign roles.
After you define a credit analyst, you can modify any of the analyst’s information, except the
employee and user names.
Note: You can assign the credit manager role to a credit analyst. A credit manager has access
to setup functionality.

Chapter 19 - Page 6
Assign Credit Analyst to Accounts
Assign credit analysts to your customers and

accounts to indicate who is responsible for monitoring
the creditworthiness of the account and for assisting
in the resolution of credit–related issues.

To assign a credit analyst to a customer or account, you update the assigned profile class. If the
applicant does not have an assigned credit analyst, or is a prospect, then any credit review for
that applicant is routed to the Credit Scheduler for analyst assignment

Chapter 19 - Page 7
Define Lookups
Define Lookups
Credit Management uses lookups to help speed data

entry and increase accuracy.
You can use the predefined lookups that Credit
Management provides, or you can create additional
lookups where required.
Define Lookups
For example, to identify an applicant’s potential credit risk, you must select a credit
classification, if not previously assigned, when entering a credit application. The credit
classification describes the type of credit relationship that you have with the applicant.
Credit Management provides you with High Risk, Low Risk, and Moderate Risk, but you can
optionally define new credit classifications to fit your business needs.
You use the Oracle Receivables Lookups window to define any additional lookups that you
require.

Chapter 19 - Page 8
Define System Options
Define System Options
You are required to define these system options for

Credit Management:
• Aging Bucket
• Default Customer Profile Class
• DQM Matching Rule Name
• Period for Time Sensitive Data
• Application Numbering Option
• Exchange Rate Type
• DSO Days (Days Sales Outstanding)
– Delinquent Days Sales Outstanding (DDSO)

Chapter 19 - Page 9
Define Scoring Models
You use the View Scoring Models page to view the

different scoring models that correspond to your
enterprise’s credit policies.
A scoring model evaluates your customer or
prospect’s creditworthiness based on specific criteria
that you define.

A scoring model consists of a group of data points, with scored ranges and a relative weighting
factor for each data point. During a credit analysis, Credit Management calculates a score from
0 to 100, with 0 representing the most risk and 100 representing the least risk.
The View Scoring Models page displays a table of all existing scoring models. You can view
and update the scoring models by clicking the respective inline icons, or you can define a new
scoring model.
You can assign a default scoring model to a credit checklist. Alternatively, you can generate
various ”what–if” scenarios during a credit review by selecting different scoring models from
the case folder.

Assign Automation Rules
For any scoring model, you can define a set of

automation rules to guide the implementation of credit
decisions without user intervention. Such automation
is preferable when the credit risk, as defined by your
enterprise’s credit policies, is minimal.
You can define a set of automation rules for any of
your scoring models, provided that:
• A checklist and scoring model are defined and
assigned to a credit review type and credit
classification combination
• Automation rules do not yet exist for the
combination

Automation rules base credit decisions upon the credit score that the assigned scoring model
calculates. For each automation rule, you define recommendations for a related credit score
range. For example, if the credit score is below 50, you might want to automatically reject a
credit request.
The Automation Rules page provides you with an overview of all scoring models for which a
set of automation rules is defined. You can view and update existing sets of automation rules
by clicking the respective inline icons, or you can create a new set.
Note: This step is optional.

Credit Checklist
Credit Checklist
For each credit review type and credit classification

combination, you assign a credit checklist.
The checklist indicates the type of credit analysis,
from conservative to aggressive, that you require for
an applicant.
In this manner, you can effectively enforce your
enterprise’s credit policies.
Credit Checklist
For example, when a high risk customer seeks to increase its credit limit with your enterprise,
your credit policies might dictate a conservative approach until this customer relationship is
more established. In this scenario, you would use a conservative checklist to determine whether
to grant additional credit and what the credit limit should be.
The flexible setup procedures that follow reflect Oracle Credit Management’s ability to meet
the demands of your enterprise’s particular credit policies.

Credit Usage Rule Sets
Credit Usage Rule Sets
Confirm the credit usage rule sets that are assigned to

your customer profile classes.
In Credit Management, credit usage rule sets ensure
that all transactions for the specified currencies are
converted to the credit currency and included in data
point calculations in the case folder.
Verify Credit Usage Rule Sets

For example, if a customer is assigned the Default profile class with a credit usage rule set that
includes USD, EUR, and CAD, then any transactions of those currencies are included in that
customer’s case folder for data points such as Count of Open Invoices or Amount of Open
Invoices.
In Oracle Order Management, credit usage rule sets define the set of currencies that will share
a predefined credit limit during the credit checking process, and enable the grouping currencies
for global credit checking.

Define Credit Hierarchies
Relationship Manager lets you easily build, view, and

edit relationships between entities.
Using Relationship Manager, you can:
• View a single party and all its relationships
• Create new relationships and edit existing
relationships
• Focus on a particular portion of a hierarchy and
edit the hierarchical structure

To provide global credit limits that are shared by some or all entities within a complex,
multinational organization, you can define credit relationships between parties using Oracle
Trading Community Architecture Relationship Manager.
You can define a credit hierarchy of parties, party relationships, hierarchy levels, accounts, and
account sites. Typically, the party object and party subject in a credit relationship represent a
parent and child, or HQ and division hierarchy. For each entity in the hierarchy, you can view
credit information, such as credit hold status, credit limits by currency, and credit review cycle.
Using Relationship Manager, you assign to your entities an existing relationship type, such as
Global Ultimate, or your own user–defined Credit Management relationship type. You then
link the relationships to Credit Management by assigning the relationship type to the AR:
Credit Hierarchy Type profile option. When you conduct a credit review for an entity that has
hierarchical relationships, Credit Management consolidates and displays all data for the entire
hierarchy.

Define Customer Profile Classes
You use customer profiles to group customer

accounts with similar credit worthiness, business
volume, and payment cycles.
For each profile class you can define information such
as credit limits, payment terms, statement cycles,
invoicing, and discount information.

You can also define amount limits for your finance charges, dunning, and statements for each
currency in which you do business. Define your standard customer profiles in the Customer
Profile Classes window. These profiles contain generic options you can use to group your
customers into broad categories.
For example, you might define three categories: one for prompt paying customers; one for late
paying customers with high finance charge rates; and a third for customers who mostly pay on
time, with discount incentives for early payment.
You can also use the profile class ’DEFAULT,’ which Oracle Receivables provides.

Customer Profile Classes: Credit Profile Tab
Customer Profile Classes:

Credit Profile Tab
The Credit Profile tab is used to define customer

defaults for Credit Management processing.
You can define:
• Periodic Review Cycle
• Credit Analysis
• Credit Tolerance
Credit Profile Tab in Customer Profile Classes form

Periodic Review Cycle
• Defines the frequency of automatic reviews for a customer.
Note: Eligible reviews are processed via the Periodic Review Cycle concurrent program.
Credit Analysis
• The credit analysis automatically is assigned to all parties, accounts, and sites which have
this profile class.
Credit Tolerance
• The percentage upon which credit exposure is exceeded before an order will be placed on
credit holds. Credit holds automatically submit a credit request.

Use Customers-Standard
Use Customers-Standard
You can assign a profile class to customers and

addresses through the Customers–Standard window.
The customer profile class you assign provides the
default values, which you can optionally customize to
meet specific requirements for each customer or
address.
Customers-Standard Window
If a profile is assigned to a customer and an address of the same customer, the options set at the
address level take precedence over those set at the customer level.
For statement site and dunning site profile amounts, however, Receivables uses the options at
the address level only if you set the AR: Use Statement Site & Dunning Site Profiles profile
option to Yes.

Agenda
Agenda


Process Credit Reviews
Process Credit Reviews
You use credit management to process credit reviews

for both your customers and prospects. Depending on
your setup, some types of credit reviews might require
the assistance of a credit analyst, while other types
might not require any user intervention at all.
You can divide the credit review process into four
stages:
• Initiating a credit review
• Collecting credit data
• Analyzing credit data
• Making and implementing the recommendation
Credit Review Process

During the credit review, the Credit Management Application workflow manages the process
flow of credit data collection and analysis, as well as the implementation of credit decisions. In
addition, Credit Management provides various tools that you can use to determine if your
credit policies are effective.

Initiate a Credit Review
All credit reviews begin with either a manual or

automatic request:
• Credit or other personnel can manually initiate a
credit review for a customer or prospect by
submitting an online credit application, or by
creating a case folder without a credit application.
A case folder is an electronic representation of a
hardcopy credit file.
• Certain business events can automatically initiate
a credit review by calling the Credit Review
Request API. This type of request creates a credit
application and case folder without user
intervention.

For example, if a sales order is put on credit hold, then the credit hold process in Oracle Order
Management passes this information to the Credit Review Request API, which automatically
initiates a credit review. Other events, such as a quarterly review, can also trigger a credit
review.
Note: You can also use the Credit Review Request API to initiate a credit review from a non–
Oracle system.

Collecting Credit Data
During a credit review, you collect credit data for your

customers and prospects. The type of credit data that
you collect for every credit review is determined by the
credit checklist.
Credit Management uses credit checklists in two
places:
Credit application Case folder

The credit checklist indicates which data points are required for different types of credit
analyses and decisions, and can optionally indicate which scoring model will be used for the
review. In this way, the checklist enforces your enterprise’s credit policies.
If the checklist identifies required data points that already exist within Oracle Applications or
are calculable, such as available credit, aging, and so on, then Credit Management
automatically inserts that information directly into the credit application and case folder. If the
checklist requires data points that must be manually supplied, such as bank and trade
references, then a credit analyst must enter the required data into the credit application or case
folder.

Analyzing Credit Data
After initiating the review request and collecting data,

the third stage of a credit review is the credit analysis.
Credit Management provides you with Credit Analysis
data pages that help you to make appropriate credit
recommendations.

The Credit Analysis data pages comprise the universe of data points for the applicant. The
Credit Analysis data pages that are available off of the Analysis tab include:
Credit Analysis: Case Folder
Credit Analysis: Credit Summary
Credit Analysis: Billing and Payment Details
Credit Analysis: Aging Details

Making a Recommendation
At the conclusion of a credit review, either Credit

Management or a credit analyst makes a
recommendation in response to the original credit
request:
• If a credit review is automated, then Credit
Management attempts to automatically make and
implement credit decisions without the assistance
of credit personnel, based upon the calculated
credit score.
• If a credit analyst is managing the credit review,
then the analyst records recommendations in the
case folder, based on the credit analysis and
resulting credit score.
Generally, a recommendation is specific to the type of review that was just concluded. For
example, a credit review that an order hold originally initiated would most likely result in a
recommendation to:
Increase the credit limit to accommodate the amount of the order and remove the order from
hold.
Deny the request for an increase in the credit limit and leave the order on hold.

Implementing the Recommendation
If additional approval is unnecessary or the approval

was already obtained, then the workflow calls the
appropriate APIs to implement the recommendation.

Receivables automatically implements the recommendation after all required parties have
approved it.
For example, if the recommendation indicates that the order should be removed from credit
hold, then the workflow will call the Remove Credit Hold API and pass the necessary
information, such as order ID, account ID, and so on, to initiate the process.

Agenda
Agenda


Credit Management Application Workflow
This workflow manages the process flow of gathering

and analyzing account or prospect credit data, and
making and implementing credit decisions.

For each credit review, the workflow checks the automation rules that you previously defined:
If the credit review is automated, then the workflow attempts to automatically make and
implement credit decisions without user intervention.
If the workflow stops due to conditions such as missing data, then the workflow routes
notifications to the appropriate credit analyst for resolution.
If a credit analyst was never assigned because the credit review was automated, then the
workflow notifies the user with the Credit Scheduler responsibility that a credit analyst
must be assigned. The Credit Scheduler can select the credit analyst to be assigned from
the List of Values. The assigned credit analyst then receives a notification that they have
a credit request in their queue.
If the credit review is not automated, then the workflow assigns the credit review to the
appropriate credit analyst and notifies the analyst about the assignment.
With unautomated credit reviews, credit analysts make recommendations, such as increasing
or decreasing the credit limit, after performing the credit analysis.

Oracle Approvals Management (AME)
To determine if credit decisions require approval, the

workflow uses the approval rules that you defined in
Oracle Approvals Management (AME).
Oracle Approvals Management is a self–service Web
application that you can use to define business rules
that govern who must approve transactions in other
Oracle applications.

Once you define the rules for a given application, the Oracle Approvals Management Engine
manages the approvals for that application’s transactions.
If approval is required, then the workflow routes notifications according to the approval
hierarchy:
If the recommendation is approved by the appropriate personnel, then the workflow
automatically implements the decision.
If the recommendation is rejected as it is routed through the approval hierarchy, then the
workflow sends notifications to the appropriate personnel and updates the case folder.
If a credit analyst cannot be identified, then the workflow notifies the person assigned to the
Credit Scheduler role that a credit analyst assignment is required. The Credit Scheduler is a
role used in Credit Management to assign credit tasks to credit analysts.

Agenda
Agenda


Review Credit Management Performance
Credit Management provides you with comparison

tools that help you to determine if your credit policies
have adequately assessed the creditworthiness of
your customers.

On the Performance tab, you can access simple views into the workload and effectiveness of
the checklists and scoring models that you have set up and used in credit reviews, including:
Credit Workload Quick Check
Top 10 Customer Credit Exposure
Customer Trends (Pay Trend)
Checklist Usage by Month
Scoring Model Usage by Month

Agenda
Agenda


To provide global credit limits that are shared by some

or all entities within a complex, multinational
organization, you can define credit relationships
between parties using Oracle Trading Community
Architecture Relationship Manager.
Use Relationship Manager

Relationship Manager lets you easily build, view, and edit relationships between entities. Using
Relationship Manager, you can:
View a single party and all its relationships
Create new relationships and edit existing relationships
Focus on a particular portion of a hierarchy and edit the hierarchical structure

Identify a Credit Hierarchy
Identify a Credit Hierarchy
You can define a credit hierarchy of parties, party

relationships, hierarchy levels, accounts, and account
sites. Typically, the party object and party subject in a
credit relationship represent a parent and child, or HQ
and division hierarchy.
For each entity in the hierarchy, you can view credit
information, such as:
Credit limits
Credit hold status by currency Credit review cycle
Use Relationship Manager

Using Relationship Manager, you assign to your entities an existing relationship type, such as
Global Ultimate, or your own user–defined Credit Management relationship type. You then
link the relationships to Credit Management by assigning the relationship type to the AR:
Credit Hierarchy Type profile option.
When you conduct a credit review for an entity that has hierarchical relationships, Credit
Management consolidates and displays all data for the entire hierarchy.

Summary
Summary

• Setup for credit management
• Demonstrate credit profile changes
• Identify credit management processing
• Use workflow and lookups
• Review credit management performance
• Apply credit hierarchy


11i Order to Cash
Fundamentals Supplemental
Practices
Chapter 20
11i Order to Cash Fundamentals Supplemental Practices

Chapter 20 - Page 1
11i Order to Cash Fundamentals

Supplemental Practices

Chapter 20 - Page 2
Objective
Objective
These Practices have been compiled to allow the

learner to apply their knowledge of Oracle Order
to Cash by completing exercises that build upon
one another.
In performing these practices, the learner will be
able to obtain an understanding of the flow of
transactions and the implications of system
implementation decisions.

Chapter 20 - Page 3
Practice - Instructor Preparation
Tasks
Verify that accounting periods in Accounts Receivable for Vision Operations and the Inventory
Organization - Seattle Manufacturing are open. The current month should correspond to the
current calendar period.
1. AR Periods
• Responsibility: Receivables Manager
• (N) Control > Accounting > Open/Close Periods
2. INV Periods
• Responsibility: Inventory Super User, Vision Operations (USA)
• (N) Accounting Close Cycle > Inventory Account Periods

− Select appropriate Inventory Organization
3. De-select the Automatic Site Numbering for Customers.

Chapter 20 - Page 4

Chapter 20 - Page 5
Practice - Create a Customer Profile Class
Overview
In this practice you will create a customer profile class
Assumptions
Practice.
Tasks
Create a new customer profile class: XX-New
1. Navigate to the Profile Classes window
• (N) Customers > Profile Classes

− Name: XX-New
− Description (unnamed field): XX New
2. Use the following information to define your profile class:

− Collector: Pat
− Match Receipts By: Transaction Number
− Auto Cash Rule Set: Standard
− Remainder Rule Set: Standard
− Charge Interest : Unchecked
− Statement Cycle: Monthly (25th day of every month)
− Tax Printing Method: Itemize and Sum
− Dunning Letter Set: STANDARD
3. Use the following information to specify limits in USD

− Min Receipt Amount: 15.00
− Min Statement Amount: 100.00
− Min Dunning Amount: 50.00
− Min Dunning Invoice Amount: 50.00

Chapter 20 - Page 6

Chapter 20 - Page 7
Solution - Create a Customer Profile Class
Create a new customer profile class: XX-New
1. Navigate to the Profile Classes window
• (N) Customers > Profile Classes

− Name: XX-New
− Description (unnamed field): XX New

− Collector: Pat
− Match Receipts By: Transaction Number
− Auto Cash Rule Set: Standard
− Remainder Rule Set: Standard
− Charge Interest : Unchecked
− Statement Cycle: Monthly (25th day of every month)
− Tax Printing Method: Itemize and Sum
− Dunning Letter Set: STANDARD
3. Leave all other defaults
4. (T) Profile Class Amounts

− Currency: USD
− Min Receipt Amount: 15.00
− Min Statement Amount: 100.00
− Min Dunning Amount: 50.00
− Min Dunning Invoice Amount: 50.00
5. (I) Save

Chapter 20 - Page 8
Practice - Create a Customer using the Standard Data Entry Form
Overview
In this practice you will create a customer using the standard customer entry form.
Assumptions
Practice.
Tasks
Create a new customer: XX-Big City, with two addresses
1. Navigate to the Find/Enter Customers window

− Name: XX-Big City
2. Create customer XX-Big City with the following information:

3. Enter address information according to the following table:
Field Value
Country United States
Address 102 N. LaSalle
City Chicago
State IL
Postal Code 60601
County Cook

Chapter 20 - Page 9
4. This address is a non-primary Bill To address:
− Location: IL Chicago
5. This address is the primary Ship To address. Invoices should be sent to the IL Chicago Bill
To location.
6. Specify salesperson information:

− Salesperson: Abbott, Ms. Rachel
7. Specify default order information.

8. Specify contact information.

− Last Name: Cooley
− First: Peggy
9. Add a second address entering address information according to the following table:
Field Value
Address 487 Beverly
City Palo Alto
State CA
Postal Code 94301
County San Mateo
10. This address is the primary Bill To address.

− Location: CA Palo Alto
11. This address is a non-primary Ship To address. Invoices will be sent to the
12. Specify salesperson information:

− Salesperson: Nelson, Mr. Brian
13. Specify default order information.

− Warehouse: XX-IO
14. Specify contact information.


− Last Name: Allen
− First: Spencer

Solution - Create a Customer using the Standard Data Entry Form
Create a new customer: XX-Big City, with two addresses

2. (B) Find
3. (B) New
4. (T) Classification

6. (T) Addresses
7. (B) New
Field Value
Address 102 N. LaSalle
City Chicago
State IL
Postal Code 60601
County Cook

− Usage: Bill To
− Primary: Unchecked

10. (I) Save
11. (I) New Record

− Usage: Ship To
− Bill To Location: IL Chicago
− Primary: Checked
12. (B) Open
13. (T) Details


15. (I) Save, return to Customer Address form.
16. (T) Contacts: Telephones

− Last Name: Cooley
− First: Peggy
17. (I) Save

− Place cursor in Country field at top of form
18. (I) New Record

Field Value
Address 487 Beverly
City Palo Alto
State CA
Postal Code 94301
County San Mateo

− Usage: Bill To
− Primary: Checked
20. (I) Save

21. (I) New Record
− Usage: Ship To
− Bill To Location: CA Palo Alto
− Primary: Unchecked
22. (B) Open
23. (T) Details

− Salesperson: Nelson, Mr. Brian

− Warehouse: XX-IO
25. (I) Save, return to Customer Address form.
26. (T) Contacts: Telephones

− Last Name: Allen
− First: Spencer
27. (I) Save

Practice - Create a Customer using the Quick Data Entry Form
Overview
In this practice you will create a customer using the quick customer entry form.
Assumptions
Practice.
Tasks
Create a new customer: XX-Quick
• (N) Customers > Quick
2. Name your customer XX-Quick and specify address information according to the following
table:
Field Value

Address 888 Market
City San Francisco
State CA
Postal Code 94100
County San Francisco
3. This site will be both a Bill To and a Ship To site

Solution - Create a Customer using the Quick Data Entry Form
Create a new customer: XX-Quick
• (N) Customers > Quick

− Name: XX-Quick
− (B) Find
− (B) New [for creating new customer]
2. (T) Address
3. (B) New [for creating new address]
Field Value

Address 888 Market
City San Francisco
State CA
Postal Code 94100
County San Francisco

− Bill To: Checked
− Ship To: Checked
6. (I) Save

Practice - Create a Customer Account Relationship
Overview
In this practice you will create a customer relationship.
Assumptions
Practice.
Tasks
Create a relationship between XX-Big City and Business World (1608)
2. Find the XX-Big City customer
3. Select the Customer Account record for Big City
4. Define a reciprocal relationship with Business World (1608)

Solution - Create a Customer Account Relationship
Create a relationship between XX-Big City and Business World (1608)

2. (B) Find
3. Select the Customer Account record for Big City
4. (B) Ok
5. (T) Relationships
− Name: Business World
− Number: 1608
− Type: Reciprocal
6. Leave all other defaults
7. (I) Save



Practice - Create a User
Overview
In this practice you will create a new user.
Assumptions
Practice.
Tasks
Log on to the System
− User Name = operations
− Password = welcome
Create new user
Responsibility = System Administrator
1. Navigate to the Users window
• (N) Security > User > Define

− Name: your name [example: TNORTH]
− Password: Oracle [will need to enter twice for verification]
2. Assign responsibilities according to the following table:
Responsibility
Receivables Manager
Sign in as new user
3. From main sign-on screen, enter new user name and password

4. Change password to Welcome

Solution - Create a User
Create new user
Responsibility = System Administrator
1. Navigate to the Users window
• (N) Security > User > Define

− Name: your name [example: TNORTH]
− Password: Oracle [will need to enter twice for verification]
2. (T) Responsibilities
3. Assign responsibilities according to the following table:
Responsibility
Receivables Manager
4. (I) Save
Sign in as new user
5. From main sign-on screen, enter new user name and password
6. Change password to Welcome

Practice - Create a Unit of Measure
Overview
In this practice you will create a unit of measure.
Assumptions
Practice.
Tasks
Create a Unit of Measure Class
1. Navigate to the Units of Measure Classes window
• (N) Setup > Units of Measure > Classes
If prompted, select V1: Vision Operations as the inventory organization
2. Create a new unit of measure class with the following information

− Name: XX-Quant
− Description: XX Quantity
− Base Unit: XX Each
− UOM: XXE
3. Create a new unit of measure with the following information

− Name: XX Case
− UOM: XXC
− Description: XX Case
Create a Unit of Measure Conversion
4. Create a new unit of measure conversion. XX Case has 15 XX Each.

Solution - Create a Unit of Measure
Create a Unit of Measure Class
1. Navigate to the Units of Measure Classes window
• (N) Setup > Units of Measure > Classes
If prompted, select V1: Vision Operations as the inventory organization
2. (I) New Record

− Name: XX-Quant
− Description: XX Quantity
− Base Unit: XX Each
− UOM: XXE
3. (I) Save
4. (B) Units of Measure
5. (I) New Record

− Name: XX Case
− UOM: XXC
− Description: XX Case
6. (I) Save, close window to return to Unit of Measure Class window
Create a Unit of Measure Conversion
7. (B) Conversions
8. (I) New Record

− Unit: XX Case
− Conversion: 15
9. (I) Save

Practice - Create a Location
Overview
In this practice you will create a location.
Assumptions
Practice.
Tasks
Create Location

− Global: Checked
2. Add a location with the following address details

Field Value
City San Diego
State CA
Zip 92130
County San Diego

Solution - Create a Location
Create Location

− Global: Checked

Field Value
City San Diego
State CA
Zip 92130
County San Diego
3. (B) OK
4. (I) Save

Practice - Create an Inventory Organization
Overview
In this practice you will create a new inventory organization.
Assumptions
Practice.
Tasks
Create Inventory Organization
• (N) Setup > Organization > Organization
2. Name the inventory organization XX-IO and assign the location you created in the prior
exercise to the inventory organization.
− Organization Classification Name: Inventory Organization
− Enabled: Checked
3. Specify the following inventory parameters

Note: This will have defaulted as the new organization you must change the value
to Vision Operations.
4. Specify the following costing information

− Rates Cost Type: Current
− Valuation: Accounts:

Material 01-000-1410-0000-000
Overhead 01-000-1430-0000-000
Resource 01-000-1440-0000-000
Expense 01-000-2225-0000-000
5. Specify the following receiving information

− Receiving: Accounts:


Sales 01-540-4160-0000-000
− Cost Variance Account:


Solution - Create an Inventory Organization
Create Inventory Organization
• (N) Setup > Organization > Organization
2. (B) New
− Name: XX-IO
− Location: XX-Location
3. (I) Save
− Organization Classification Name: Inventory Organization
− Enabled: Checked
4. (I) Save
5. (B) Others > Inventory Information
6. (T) Inventory Parameters

Note: This will have defaulted as the new organization you must change the value
to Vision Operations.

− Rates Cost Type: Current
− Valuation: Accounts:

Material 01-000-1410-0000-000
Overhead 01-000-1430-0000-000
Resource 01-000-1440-0000-000
Expense 01-000-2225-0000-000



Sales 01-540-4160-0000-000
− Cost Variance Account:

9. (I) Save

Practice - Create a Subinventory
Overview
In this practice you will create a subinventory.
Assumptions
Practice.
Tasks
Create Subinventory
2. Create a subinventory for your inventory organization using the following information:
− Name: XX-Stores
− Location: Stores
3. Verify that account combinations have defaulted from the inventory organization definition.

Solution - Create a Subinventory
Create Subinventory
2. Choose your organization (XX-IO) from the list
3. (N) Setup > Organizations > Subinventories
4. (B) New
− Name: XX-Stores
− Location: Stores
Note the values that have defaulted in (T) Main have come from the inventory
organization definition
5. (T) Accounts
Note the values that have defaulted in (T) Main have come from the inventory
organization definition
6. (I) Save

Practice - Define Shipping Parameters
Overview
In this practice you will define shipping parameters.
Assumptions
Practice.
Tasks

2. Specify the following general shipping parameters

3. Specify the following pick/release parameters

4. Specify the following shipping transaction parameters


Solution - Define Shipping Parameters

2. (T) General
3. (T) Pick Release

4. (T) Shipping Transaction

5. (I) Save

Enter Items
Enter Items

Practice - Create an Item
Overview
In this practice you will create an item.
Assumptions
Practice.
Tasks
Define an Item
1. Navigate to the Master Items window
• (N) Items > Master Items
If prompted, select V1: Vision Operations

− Organization: V1 (should default)
− Unit of Measure: XX Each
2. Apply the Finished Good template
3. Specify a list price of 2.00
4. Enable the item in the M1-Seattle Manufacturing and the XX1 inventory organizations

Solution - Create an Item
Define an Item
1. Navigate to the Master Items window
• (N) Items > Master Items
If prompted, select V1: Vision Operations

− Organization: V1 (should default)
− Unit of Measure: XX Each

3. (B) Apply
4. (B) Done
5. (I) Save
6. (T) Purchasing
− List Price: 2.00
7. (I) Save

If grayed out, you haven’t saved.
− Query and enable the following organizations: M1-Seattle Manufacturing and XX1-
your inventory organization
9. (I) Save

Practice - Create a Material Transaction
Overview
In this practice you will create a material transaction.
Assumptions
Practice.
Tasks

2. Enter a miscellaneous transaction using the following information:

item:
4. Use the Change Organization window to make your inventory organization the current
inventory organization

6. Change the status to open the period

Enter quantities for your XX-IO inventory organization

item:
9. (I) Save

Solution - Create a Material Transaction



− Subinventory: Stores
− Quantity: 10000
4. (I) Save, return to Navigator
5. (N) Change Organization
6. Select XX1 (your inventory organization)

8. (B) Change Status
9. (B) OK
10. Return to Navigator
Enter quantities for your XX-IO


− Subinventory: XX-Stores
− Quantity: 10000
13. (I) Save

Practice - Add an Item to a Price List
Overview
Assumptions
Practice.
Tasks
2. Add your item to the Corporate price list using the following information:
− Value: 7.50

Solution - Add an Item to a Price List
2. Query Corporate Price List
3. (T) List Lines
4. (I) New Record

− Value: 7.50
5. (I) Save

Enter Orders
Enter Orders

Practice - Create a Sales Order Header
Overview
In this practice you will create a sales order header.
Assumptions
Practice.
Tasks
Create a sales order header
2. Create a sales order for the following customer. Associate purchase order number XX-100
with the sales order.
− Customer: XX-Big City

− Ship To Location: IL Chicago
− Salesperson: Abbot, Ms. Rachel
Split sales credit between Rachel Abbot and Timothy Cleary
4. Specify sales credit information according to the following table:
Salesperson Percent
Abbot, Ms. Rachel 75%
Cleary, Mr. Timothy 25%

5. Note Sales Order Number________________________

Solution - Create a Sales Order Header
Create a sales order header


− Ship To Location: IL Chicago
− Salesperson: Abbot, Ms. Rachel
Split sales credit between Rachel Abbot and Timothy Cleary
4. (B) Actions > Sales Credits
5. Change Rachel Abbot’s sales credit to 75%

Salesperson: Abbot, Ms. Rachel
− Credit Type: Quota Sales Credit (should default)
− %: 75.000
6. Add Timothy Cleary’s 25% sales credit

− Salesperson: Cleary, Mr. Timothy
− Credit Type: Quota Sales Credit (should default)
− %: 25.000
7. (B) Ok
8. (I) Save

Practice - Create a Sales Order Line
Overview
In this practice you will create a sales order line.
Assumptions
Practice.
Tasks
Create a Sales Order Line
2. If you are not currently in the sales order from the prior practice, query it now.
3. Create sales order lines according to the following table:
Item Quantity Request Date

XX-Mousepad 5 Today’s date
CM13139 30 One week from today

Solution - Create a Sales Order Line
Create a Sales Order Line
2. If you are not currently in the sales order from the prior practice, query it now.
3. (T) Line Items (T) Main

− Qty: 5
− Request Date: today’s date
4. (I) Save
5. (I) New Record

− Item: CM13139
− Qty: 30
− Request Date: one week from today
6. (I) Save

Practice - Create a Split Line and Ship Set
Overview
In this practice you will create a split line and ship set.
Assumptions
Practice.
Tasks
Split an order line into shipments and create a ship set.
1. Navigate to the Sales Orders windows


− Qty: 100

− Qty: 50
− Warehouse: XX1
5. (I) New Record

− Qty: 50
− Date: Today’s date +7
− Warehouse: M1
− (B) Split

6. (I) New Record
− Item: AS92689
− Qty: 5
− Warehouse: M1
Create a ship set including line 1.2 and line 2.1
7. Shift + Left Mouse click, highlight lines 1.2 and 2.1
8. Right Mouse click > Sets > New > Ship Set
− Set Name: XX-SS1
9. (B) Ok
10. View results of ship set creation
11. (T) Shipping

Solution - Create a Split Line and Ship Set
Split an order line into shipments and create a ship set.
1. Navigate to the Sales Orders windows


− Qty: 100

− Qty: 50
− Warehouse: XX1
5. (I) New Record

− Qty: 50
− Warehouse: M1
− (B) Split
6. (I) New Record

− Item: AS92689
− Qty: 5
− Warehouse: M1
Create a ship set including line 1.2 and line 2.1
7. Shift + Left Mouse click, highlight lines 1.2 and 2.1
8. Right Mouse click > Sets > New > Ship Set
− Set Name: XX-SS1
9. (B) Ok
10. View results of ship set creation
11. (T) Shipping


Practice - Schedule an Order
Overview
In this practice you will schedule an order for shipping.
Assumptions
Practice.
Tasks
Create Sales Order referencing purchase order XX-300
2. Create a sales order for the following customer:

3. Specify the following sales order information

− Qty: 150
− Request Date: Today’s Date + 45 days
− Line Type: Standard (Header Invoicing)
4. Ensure the sales order references purchase order XX-300
Check Availability
6. Check availability and if there is quantity available, continue on to scheduling.
Schedule order line
8. (B) OK

9. Note the scheduling activity has occurred for the request date.
10. (T) Shipping
Reserve order line
12. (B) OK
13. Note the Qty Reserved field has been populated
14. (T) Shipping
Use Autoschedule for additional order line
15. (M) Tools > Autoschedule (make sure this is checked)
16. (I) New Record

− Item: AS18947
− Qty: 2
Note: Tab out of the quantity field to see the Availability displayed automatically
17. (I) Save
19. (T) Shipping
20. (I) Save

Solution - Schedule an Order
Create Sales Order referencing purchase order XX-300


− Qty: 150
− Request Date: Today’s Date + 45 days
− Line Type: Standard (Header Invoicing)
Check Availability
4. (B) Availability
5. If there is quantity available, continue on to scheduling.
Schedule order line
7. (B) OK
8. Note the scheduling activity has occurred for the request date.
9. (T) Shipping
Reserve order line
11. (B) OK
13. (T) Shipping

Use Autoschedule for additional order line
14. (M) Tools > Autoschedule (make sure this is checked)
15. (I) New Record

− Item: AS18947
− Qty: 2
Note: Tab out of the quantity field to see the Availability displayed automatically
16. (I) Save
18. (T) Shipping
19. (I) Save

Practice - Book an Order
Overview
In this practice you will book a sales order.
Assumptions
Practice.
Tasks
Book a Sales Order
1. Navigate to the Order Organizer window
2. (I) Find
− Customer Name: XX-Big City
3. (B) Find
Book your orders
4. Using Shift + Click, highlight your sales order
5. (B) Actions > Book Order
6. (B) Continue
7. Note status change of the sales orders
Verify workflow activities for your order (PO number XX-200)
8. Select sales order linked to PO: XX-200
9. View the status in Workflow

11. Click on first OM Order Line link
Verify line has been entered successfully
13. Double click on Enter - Line activity
Verify scheduling activities have occurred
14. Double click Schedule - Line activity
Verify product will ship from internal (stock) inventory locations
15. Double click on Create Supply – Line activity
Verify Ship activity is current activity for line flow
16. Double click on Ship - Line, Manual activity

Solution - Book an Order
Book a Sales Order
2. (I) Find
3. (B) Find
Book your orders
4. Using Shift + Click, highlight your sales order
5. (B) Actions > Book Order
6. (B) Continue
7. Note status change of the sales orders
Verify workflow activities for your order (PO number XX-200)
8. Select sales order linked to PO: XX-200
9. View the status in Workflow
11. Click on first OM Order Line link
Verify line has been entered successfully
13. Double click on Enter - Line activity
14. (B) Zoom out
Verify scheduling activities have occurred
15. Double click Schedule - Line activity
16. (B) Zoom out

Verify product will ship from internal (stock) inventory locations
17. Double click on Create Supply – Line activity
18. (B) Zoom out
Verify Ship activity is current activity for line flow
19. Double click on Ship - Line, Manual activity
20. Close Workflow Diagram window

Practice - Copy a Sales Order
Overview
In this practice you will copy a sales order.
Assumptions
Practice.
Tasks
Find sales order referenced by PO: XX-100
2. Find sales orders for XX-Big City that reference purchase order XX-100
Copy sales order
4. (T) Quick Copy
5. Accept default option to Create New Order

Note: a note window will pop, indicating:

− The Customer PO was referenced by another order
− The copy has succeeded
− The new Order Number

Update Information on copied order
7. Find, and open your sales order

− Order number: from above
8. Specify the following order information

− Ship To: CA Palo Alto
9. Update the Ship To Address for both lines on the sales order to CA Palo Alto
10. For the second line, update the shipping warehouse to M1, Seattle Manufacturing
Add additional line to new sales order
11. Add a new line using the following information.

− Item: AS72111
− Qty: 1
− Request Date: Today’s date
− Warehouse: M1
12. Book the order

Solution - Copy a Sales Order
Find sales order referenced by PO: XX-100
2. (I) Find
3. (B) Find
Copy sales order
5. (T) Quick Copy
6. Accept default option to Create New Order

7. (T) Copy Header

8. (T) Copy Line

9. (T) Pricing Option

10. (B) Ok
Note: a note window will pop, indicating:

− The Customer PO was referenced by another order
− The copy has succeeded
− The new Order Number
12. (B) Continue
13. (B) Cancel
Note: if you select the Ok button again, you will copy the order a second time.

14. Return to Order Organizer
Update Information on copied order
15. (I) Find

− Order number: from above
16. (B) Find
17. (B) Open Order

19. (T) Line Items (T) Addresses
20. Update the Ship To Address for both lines on the sales order
21. For the second line, update the shipping warehouse to M1, Seattle Manufacturing
− Warehouse: M1
22. (I) Save
Add additional line to new sales order
23. (I) New Record

− Item: AS72111
− Qty: 1
− Request Date: Today’s date
− Warehouse: M1
24. (I) Save
25. (B) Book Order


Managing Orders
Managing Orders

Practice - Work with the Order Organizer
Overview
In this practice you will work with the Order Organizer.
Assumptions
Practice.
Tasks
Create Default Summary form
3. Create a new folder according to the following information:

− Folder: XX-Summary
− Open as Default: Checked
Create a personalized folder
4. Shrink the status field and change the Customer PO filed to PO.
5. Move Customer PO field to the right of the Status field
6. Save your folder according to the following information:

− Folder: XX-Custom
− Open as Default: Unchecked
Save a Query in the Navigator Tree
7. Query orders for XX-Big City

8. Save your query in Navigator Tree
9. Select Search Results from Navigator Tree
10. Use Right Mouse click to open pop window
11. Select Save Query

− Public: Checked
12. Note your folder’s appearance in the Public Folder of the Navigator Tree
Look at Today’s Orders
13. Double Click on the “Today’s Orders” folder in Navigator Tree

Solution - Work with the Order Organizer
Create Default Summary form
3. (M) Folder > New

− Folder: XX-Summary
− Open as Default: Checked
4. (B) Ok
5. (M) Folder > Save
Create a personalized folder
Shrink the status field and change the prompt.
6. (I) Folder Tools
7. Place cursor in Status field
8. Click the Shrink field icon twice
9. Scroll to Customer PO field
10. (M) Folder > Change Prompt

− Prompt: PO
11. (B) Ok
12. Move Customer PO field to the right of the Status field
13. Use your mouse to “drag” the Customer PO field to the left
14. (M) Folder > Save As

− Folder: XX-Custom
− Open as Default: Unchecked
15. (B) Ok

Save a Query in the Navigator Tree
16. Query your customer’s orders
17. (I) Find

18. (B) Find
19. Save your query in Navigator Tree
20. Select Search Results from Navigator Tree
21. Use Right Mouse click to open pop window
22. Select Save Query

− Public: Checked
23. (B) Ok
24. Note your folder’s appearance in the Public Folder of the Navigator Tree
Look at Today’s Orders
25. Double Click on “Today’s Orders” folder in Navigator Tree

Practice - Update a Sales Order
Overview
In this practice you will update a sales order.
Assumptions
Practice.
Tasks
Update your sales order referencing customer PO XX-200

2. Change the sales channel and shipping instructions based on the following information:
− Shipping Instructions: Contact Sales team upon shipment

Solution - Update a Sales Order
Update your sales order referencing customer PO XX-200

2. (B) Find
3. Select sales order referencing Customer PO: XX-200
4. (B) Open Order
5. (T) Order Information (T) Others

6. (T) Line Items (T) Shipping
7. Select line 2
− Shipping Instructions: Contact Sales team upon shipment
8. (I) Save

Practice - Perform a Mass Price Change
Overview
In this practice you will perform a mass price change.
Assumptions
Practice.
Tasks
Perform a Mass Line Change

2. (B) Find
3. (T) Lines
4. Mass Change lines 1.1 and 1.2 to a High Priority shipping priority
5. Note update of line information

Solution - Perform a Mass Price Change
Perform a Mass Line Change

2. (B) Find
3. (T) Lines
4. Use Control + Click to select the lines 1.1 and 1.2
5. (M) Tools > Mass Change
6. (T) Shipping
− Shipping Priority: High Priority
7. (B) Ok (to initiate mass change)
8. (B) Ok (to acknowledge message regarding mass change)
9. (B) Open Order
11. Note update of line information

Practice - Create a Hold Name
Overview
In this practice you will create a hold name.
Assumptions
Practice.
Tasks
Create Hold Name
1. Navigate to the Holds window
• (N) Setup > Orders > Holds

− Name: XX-My Hold
− Type: Order Administration Hold
2. Record Authorizations:
− Responsibility: Order Management Super User, Vision Operations (USA)
− Authorized Action: Apply Hold
− Authorized Action: Remove Hold

Solution - Create a Hold Name
Create Hold Name
1. Navigate to the Holds window
• (N) Setup > Orders > Holds

− Name: XX-My Hold
− Type: Order Administration Hold
2. Record Authorizations:
− Authorized Action: Apply Hold
− Authorized Action: Remove Hold
3. (I) Save

Practice - Apply a Hold
Overview
In this practice you will apply a hold.
Assumptions
Practice.
Tasks
Apply an Order Level Hold to the order referenced by customer PO XX-200

2. (B) Find
3. Apply the following hold and comments:

− Hold Name: XX-My Hold
− Comments: add at your discretion
4. Use Additional Hold Information to view the hold information associated with the order

Solution - Apply a Hold
Apply an Order Level Hold to the order referenced by customer PO XX-200

2. (B) Find
3. (B) Actions > Apply Holds

− Hold Name: XX-My Hold
− Comments: add at your discretion
4. (B) Apply Holds
5. (B) Ok
6. (B) Action > Additional Order Information (T) Holds
7. Note your hold information is contained on the form

Practice - Release a Hold
Overview
In this practice you will release a hold.
Assumptions
Practice.
Tasks
Release an Order Level Hold against order referenced by customer PO XX-200

2. Release the hold with the following release reason:

− Reason: Approved by Sales Manager
3. Use Additional Order information to view the release reason associated with the hold.

Solution - Release a Hold
Release an Order Level Hold against order referenced by customer PO XX-200

2. (B) Find
3. (B) Actions > Release Holds

− Reason: Approved by Sales Manager
4. (B) Release
5. (B) Ok
6. (B) Action > Additional Order Information (T) Holds
7. Note your release is noted on form, including your username.

Practice - Cancel an Order Line
Overview
In this practice you cancel an order line.
Assumptions
Practice.
Tasks
Cancel one line of an existing order

2. Cancel line 2.1 and view the status field to see the changed status.
− Reason: Administrative or procedural error
− Comments: enter at your discretion

Solution - Cancel an Order Line
Cancel one line of an existing order

2. (B) Find
3. (B) Open Order
4. (T) Line Items
5. Put your cursor on Line 2.1 (AS92689)
6. (B) Action > Cancel

− Reason: Administrative or procedural error
− Comments: enter at your discretion
7. (B) Ok
8. (T) Main
9. Note the updated Qty value.
10. Scroll to Status field to see changed status.
11. Scroll to Qty Cancelled field to see updated quantity.


Basic Pricing
Basic Pricing

Practice - Create a Price List
Overview
Assumptions
Practice.
Tasks
Create Price List Header and Lines
Responsibility = Order Management Super User, Vision Operation( USA)
1. Navigate to the Advanced Pricing - Price Lists window
• (N) Pricing > Price List > Price List Setup

− Name: XX-Base Prices
− Active: Checked
− Description: Corporate Base Price
− Currency: USD
− Round To: -2
2. Add the following items to the price list. Save after each line.
Product Product Product Value Primary Line Application Value

Context Attribute UOM UOM Type Method
Item Item AS54888 Ea Checked Price Unit Price 1500

Number List
Line
Number List
Line
Item Item AS18947 Ea Unchecked Price Unit Price 1800
Number List

Line
Item Item AS72111 DZ Unchecked Price Unit Price 2208
Number List
Line
Item Item XX-Mouse Pad XXE Unchecked Price Unit Price 7.50
Number List
Line
Item Item WR18533 YR Checked Price Percent Price 5
Number List
Line
Item Item COMPUTER. Ea Unchecked Price Unit Price 2000
Category NOTEBOOK List
Line
Create Sales Order referencing your price list
3. (N) Orders, Returns > Sales Order (T) Main

− Price List: XX-Base Prices
4. Populate any required fields that have not defaulted
Order internal item number: AS18947 with a UOM of DZ
5. Enter line 1 as follows:
Line Item Quantity UOM

1.1 AS18947 1 DZ
6. Change UOM to Ea
Add additional lines to your sales order
7. Add additional lines to your order and note resulting unit price
Line Item Quantity UOM Unit Price

2.1 AS72111 1 DZ 2,208.00
3.1 AS54888 1 DZ 18,000.00

4.1 AS92689 1 Ea 2,000.00
5.1 XX-Mouse Pad 12 XXE 90.00
Answer the following questions:
1. Why did the pricing engine allow you to order 1 dozen AS72111?
Answer: Because AS72111 is on your price list with a unit of measure of dozen. Therefore
the engine used that named price for your order.
Answer: Because the “Primary UOM” is check for AS54888. Therefore the pricing engine
used the inventory unit of measure conversions to determine the unit price. In this example:
1500 (Ea unit price) * 12 (12 Ea in a DZ) = 18,000.
3. AS92689 is not on XX-Base Prices, how did the pricing engine determine the unit price?
Answer: AS92689 is a part of the inventory category “COMPUTER.NOTEBOOK”, which

is on the price list with a unit price of 2,000.
8. (I) New Record [as necessary]
For Line 6.1

− Item: WR18533
− Quantity: 1
9. (T) Services
− Service Reference Type: Order
− Service Ref Order Number: (this order number)
− Service Ref Shipment Number: 1
− Service Duration: 6
− Service Period: YR
10. (I) Save
11. Requery the lines on your order
12. Answer the following questions:
1. Why did line 6.1 change to 4.1…1?

Answer: The fifth line number digit represents a Service. By looking at the line number you
are able to identify that 4.1….1 is a Service which is linked to shipment number 1 of line
number 4.
2. How was the 600.00 Unit Price calculated?
Answer: The warranty sells for 5% of the covered product (2000) per year. Since the customer
ordered 6 years the calculation is as follows: .05 * 2000 * 6 = 600.00.

Solution - Create a Price List
Create Price List Header and Lines
Responsibility = Order Management Super User, Vision Operation( USA)
• (N) Pricing > Price List > Price List Setup

− Name: XX-Base Prices
− Active: Checked
− Description: Corporate Base Price
− Currency: USD
− Round To: -2
2. Accept all other defaults
3. (T) List Lines
Note: Save after entering each line
Product Product Product Value Primary Line Application Value

Context Attribute UOM UOM Type Method

Number List
Line
Number List
Line
Item Item AS18947 Ea Unchecked Price Unit Price 1800
Number List
Line
Item Item AS72111 DZ Unchecked Price Unit Price 2208
Number List
Line
Item Item XX-Mouse Pad XXE Unchecked Price Unit Price 7.50
Number List
Line
Item Item WR18533 YR Checked Price Percent Price 5
Number List
Line
Item Item COMPUTER. Ea Unchecked Price Unit Price 2000
Category NOTEBOOK List

Line
4. (I) Save
Create Sales Order referencing your price list
5. (N) Orders, Returns > Sales Order (T) Main

Order internal item number: AS18947 with a UOM of DZ
7. (T) Line Items
8. Enter line 1 as follows:
Line Item Quantity UOM

1.1 AS18947 1 DZ
9. Respond to the Note (B) OK
10. Change UOM to Ea
Add additional lines to your sales order
11. Add additional lines to your order and note resulting unit price
Line Item Quantity UOM Unit Price

2.1 AS72111 1 DZ 2,208.00
3.1 AS54888 1 DZ 18,000.00
4.1 AS92689 1 Ea 2,000.00
5.1 XX-Mouse Pad 12 XXE 90.00

Answer the following questions:
Answer: Because AS72111 is on your price list with a unit of measure of dozen. Therefore
the engine used that named price for your order.
Answer: Because the “Primary UOM” is check for AS54888. Therefore the pricing engine
used the inventory unit of measure conversions to determine the unit price. In this example:
1500 (Ea unit price) * 12 (12 Ea in a DZ) = 18,000.
3. AS92689 is not on XX-Base Prices, how did the pricing engine determine the unit price?
Answer: AS92689 is a part of the inventory category “COMPUTER.NOTEBOOK”, which

is on the price list with a unit price of 2,000.
For Line 6.1

− Item: WR18533
− Quantity: 1
14. (T) Services

− Service Reference Type: Order
− Service Ref Order Number: (this order number)
− Service Ref Shipment Number: 1
− Service Duration: 6
− Service Period: YR
15. (I) Save
16. Requery the lines on your order
17. Answer the following questions:
1. Why did line 6.1 change to 4.1…1?
Answer: The fifth line number digit represents a Service. By looking at the line number you
are able to identify that 4.1….1 is a Service which is linked to shipment number 1 of line
number 4.
2. How was the 600.00 Unit Price calculated?

Answer: The warranty sells for 5% of the covered product (2000) per year. Since the
customer ordered 6 years the calculation is as follows: .05 * 2000 * 6 = 600.00.

Practice - Copy a Price List
Overview
In this practice you will copy a price list.
Assumptions
Practice.
Tasks
Copy your price list: XX-Base Prices
1. Navigate to the Copy Price List window
• (N) Pricing > Price Lists > Copy Price List

− Copy From Price List: Corporate
− Copy To Price List: XX-New Corporate
− Description: Created by copying Corporate Price List
2. Verify that the price list has been copied.
3. Query your new price list to see the lines have been added from the Corporate Price List.

Solution - Copy a Price List
Copy your price list: XX-Base Prices
1. Navigate to the Copy Price List window
• (N) Pricing > Price Lists > Copy Price List

− Copy From Price List: Corporate
− Copy To Price List: XX-New Corporate
− Description: Created by copying Corporate Price List
2. (B) Submit
3. Verify that the price list has been copied.
4. Check the concurrent requests window to determine when the concurrent program has
completed. (M) View > Requests > (B) Find (all requests)
5. Query your new price list to see the lines have been added from the Corporate Price List.

Practice - Update a Price List Manually
Overview
In this practice you will update a price list.
Assumptions
Practice.
Tasks
Update price list XX-Base Prices for item AS18947 preserving the pricing history
• (N) Pricing> Price Lists > Price List Setup
2. (I) Find
3. Find item AS18947 and change to last day of this month.
4. Add the following:
Product Product Primary Line Application Value

Context Attribute Product Value UOM UOM Type Method

Number List
Line
5. Effective Dates From: first of next month

Update price list XX-Base Prices for item AS54888 without preserving the pricing
history
6. Find item AS54888
7. Update the value for the line to 1550

Solution - Update a Price List Manually
Update price list XX-Base Prices for item AS18947 preserving the pricing history
• (N) Pricing> Price Lists > Price List Setup
2. (I) Find
3. (T) List Lines
4. (I) Find
− Item: AS18947
− To: last day of this month
5. (I) Save
6. (I) New Record
Product Product Primary Line Application Value

Context Attribute Product Value UOM UOM Type Method

Number List
Line
7. Effective Dates From: first of next month
8. (I) Save
Update price list XX-Base Prices for item AS54888 without preserving the pricing
history
9. (T) List Lines
10. (I) Find

− Item: AS54888
11. Update the value for the line

− Value: 1550

12. (I) Save

Practice - Adjust a Price List
Overview
In this practice you will adjust a price list.
Assumptions
Practice.
Tasks
Adjust price list XX-New Corporate by 5% for all items
1. Navigate to the Adjust Price List window
• (N) Pricing > Price Lists > Adjust Price List

− Price List: XX-New Corporate
2. Select Adjust By: Percent

− Value: 5
Verify that the price list has been updated.
completed. Then query the price list to see the lines have been increased by 5%.

Solution - Adjust a Price List
Adjust price list XX-New Corporate by 5% for all items
1. Navigate to the Adjust Price List window
• (N) Pricing > Price Lists > Adjust Price List

− Price List: XX-New Corporate
2. Select Adjust By: Percent

− Value: 5
3. (B) Submit
Verify that the price list has been updated.
5. Query price list XX-New Corporate to see the lines have been increased in value by 5
percent.

Practice - Add Items to a Price List
Overview
In this practice you will add items to an existing price list.
Assumptions
Practice.
Tasks
Add items from inventory to your price list XX-Base Prices
1. Navigate to the Add Items to Price List window
• (N) Pricing > Price Lists > Add Items to Price List
− Set List Price Equal to Cost From: Checked
− Inventory Organization: Seattle Manufacturing
2. (B) Submit
Verify that the price list has been updated
4. Query price list XX-Base Prices to see the lines have been added.
5. Answer the following question:
Where did the value for each of the items added come from?
Answer: The cost of the item based upon the inventory organization selected.

Mass Adjust the price for the items added to XX-Base Prices
6. (N) Pricing > Price Lists > Adjust Price List

− Adjust By: Amount
− Value: 10
7. (B) Submit
9. Query price list XX-Base Prices to see the line values have been increased by 10.

Solution - Add Items to a Price List
Add items from inventory to your price list XX-Base Prices
1. Navigate to the Add Items to Price List window
• (N) Pricing > Price Lists > Add Items to Price List
− Set List Price Equal to Cost From: Checked
− Inventory Organization: Seattle Manufacturing
2. (B) Submit
4. Query price list XX-Base Prices to see the lines have been added.
5. Answer the following question:
Where did the value for each of the items added come from?
Answer: The cost of the item based upon the inventory organization selected.
Mass Adjust the price for the items added to XX-Base Prices
6. (N) Pricing > Price Lists > Adjust Price List

− Adjust By: Amount
− Value: 10
7. (B) Submit
9. Query price list XX-Base Prices to see the line values have been increased by 10.

Practice - Create an Agreement Price List
Overview
In this practice you will create an agreement price list.
Assumptions
Practice.
Tasks
Create an Agreement Price List
1. Navigate to the Price Agreements window
• (N) Pricing > Price Agreements
2. (T) Agreement
− Agreement Name: XX-Pricing Agreement
− Agreement Number: 1
− Agreement Type: Standard Terms and Conditions
3. (T) Pricing
− Price List Type: Agreement Price List
− Price List: XX-AGREEMENT PL
− Description: Agreement prices for XX-Big City
4. (T) Payment
− Payment Terms: 2/10, Net 30
− Accounting Rule: IMMEDIATE
− Invoicing: ARREARS INVOICE
5. (T) Line

Product Value Primary Application
UOM UOM Method Line Type Value
AS54888 Ea Checked Unit Price Price List Line 1450
6. (I) Save
Create a Sales Order using XX-Agreement
7. (N) Orders, Returns > Sales Orders
8. (T) Order Information
9. Add the Agreement field to the Order Information Tab view, if it is not already displayed
10. Place your cursor in the Total field
11. (I) Folder Tools
12. (I) Show Fields
13. Select Agreement

− Folder Name: XX Agreement view
15. (B) OK
− Agreement: XX-Pricing Agreement
16. Note the Price List field has been updated
18. (T) Line Items

− Ordered Item: AS54888
− Qty: 1
19. Note the Unit Price Displayed.
20. (T) Pricing
21. Note the price list referenced

22. (I) Save

Solution - Create an Agreement Price List
Create an Agreement Price List
1. Navigate to the Price Agreements window
• (N) Pricing > Price Agreements
2. (T) Agreement
− Agreement Name: XX-Pricing Agreement
− Agreement Number: 1
− Agreement Type: Standard Terms and Conditions
3. (T) Pricing
− Price List Type: Agreement Price List
− Price List: XX-AGREEMENT PL
− Description: Agreement prices for XX-Big City
4. (T) Payment
− Payment Terms: 2/10, Net 30
− Accounting Rule: IMMEDIATE
− Invoicing: ARREARS INVOICE
5. (T) Line
Product Value Primary Application

UOM UOM Method Line Type Value
6. (I) Save
Create a Sales Order using XX-Agreement
8. (T) Order Information

9. Add the Agreement field to the Order Information Tab view, if it is not already displayed
10. Place your cursor in the Total field
11. (I) Folder Tools
12. (I) Show Fields
13. Select Agreement

− Folder Name: XX Agreement view
15. (B) OK
− Agreement: XX-Pricing Agreement
16. Note the Price List field has been updated
18. (T) Line Items

− Ordered Item: AS54888
− Qty: 1
19. Note the Unit Price Displayed.
20. (T) Pricing
21. Note the price list referenced
22. (I) Save

Practice - Create a Discount Modifier List
Overview
In this practice you will create a discount modifier list.
Assumptions
Practice.
Tasks
Create a Discount Modifier list and place a qualifier on the list
1. Navigate to the Modifier Setup window
• (N) Pricing> Modifiers > Modifier Setup
2. Use the following information to set up a modifier

− Active: Checked
− Currency: USD
− Description: Discounts and Surcharges for XX-Base Prices price list
3. Specify qualifier information according to the following information:

− Grouping Number: 1
− Operator: =
4. Specify Modifier summary information:

− Modifier No.: XX-1
− Level: Line

− Automatic: Checked (should default)
− Pricing Phase: 10 – List Line Adjustment
Note - if you enter the number 10, list line adjustment will default in. Otherwise you will
need to select from the list of values
5. Specify the following discounts/charges

− Application Method: Percent
− Value: 10
Create an automatic line level price break modifier for your modifier list
6. (I) New Record in the same Discount Modifier List

− Level: Line
− UOM: Ea
7. (T) Price Breaks

8. (B) Define Details
Application
From To Method Value
1 10 Amount 8
11 20 Amount 12
21 9999999999999 Amount 15

Create a manual discount line for your modifier list

− Level: Line
10. (T) Discounts/Charges

− Value: 2
Create a sales order to test your modifier
11. (N) Orders, Returns > Sales Order

13. Populate any required fields that do not default.
14. (T) Line Items (M) Main

− Item: AS54888
− Qty: 1
View the addition of your modifier
15. (B) Actions > View Adjustments (T) Adjustments
16. Add a manual adjustment line to this order
17. (I) New Record

− Modifier Number: XX-Mod List
Note: Your manual surcharge line from your modifier should default, as there was only one
manually applied discount available. Had there been more than one, you would have to
choose which discount.
18. (B) Apply
19. (B) OK

20. Notice that the price has now been adjusted with the 10% discount and the 2% surcharge.
21. Close the View Adjustments window.
Add a new line to the sales order
22. (I) New Record

− Item: AS54999
− Qty: 25
23. (I) Save
25. Note the adjustment applied to the line.
Note: If you are in a database with only basic pricing installed: You will only see the 15%
Price Break Modifier as it will give the customer a better price than the automatic 10%
discount.
Note: If you are in a database with advanced pricing installed: The pricing engine will apply
both the 10% and 15% discounts because they are both defined as automatically applied
discounts.

Solution - Create a Discount Modifier List
Create a Discount Modifier list and place a qualifier on the list
• (N) Pricing> Modifiers > Modifier Setup
2. (M) Main
− Active: Checked
− Currency: USD
− Description: Discounts and Surcharges for XX-Base Prices price list
3. (B) List Qualifiers
4. (B) OK, to access the qualifier form

− Grouping Number: 1
− Operator: =
5. (B) Ok
6. (T) Modifier Summary

− Level: Line
− Value: 10
8. (I) Save

Create an automatic line level price break modifier for your modifier list

− Level: Line
− UOM: Ea
10. (T) Price Breaks

11. (B) Define Details
Application
From To Method Value
1 10 Amount 8
11 20 Amount 12
21 9999999999999 Amount 15
12. (I) Save
Create a manual discount line for your modifier list

− Level: Line


− Value: 2
15. (I) Save
Create a sales order to test your modifier
16. (N) Orders, Returns > Sales Order

18. Populate any required fields that do not default.
19. (T) Line Items (M) Main

− Item: AS54888
− Qty: 1
20. (I) Save
22. Add a manual adjustment line to this order
23. (I) New Record

− Modifier Number: XX-Mod List
Note: Your manual surcharge line from your modifier should default, as there was only one
manually applied discount available. Had there been more than one, you would have to
choose which discount.
24. (B) Apply
25. (B) OK
26. Notice that the price has now been adjusted with the 10% discount and the 2% surcharge.
27. Close the View Adjustments window.

Add a new line to the sales order
28. (I) New Record

− Item: AS54999
− Qty: 25
29. (I) Save
31. Note the adjustment applied to the line.
Note: If you are in a database with only basic pricing installed: You will only see the 15%
Price Break Modifier as it will give the customer a better price than the automatic 10%
discount.
Note: If you are in a database with advanced pricing installed: The pricing engine will apply
both the 10% and 15% discounts because they are both defined as automatically applied
discounts.

Shipping
Shipping

Practice - Grant Access to your User for Your Role
Overview
In this practice you will grant access to your user for your role.
Assumptions
Practice.
Tasks
Grant Access to Your User for Your Role
1. Navigate to the Shipping Execution Grants window
• (N) Shipping > Setup > Grants and Roles Definition > Grants
− User: your user
− Role: Upgrade Role

Solution - Grant Access to your User for Your Role
Grant Access to Your User for Your Role
− User: your user
− Role: Upgrade Role
2. (I) Save

Practice - Pick Release Sales Orders
Overview
In this practice you will release your sales order for picking.
Assumptions
Practice.
Tasks
Release Your Sales Order
1. Navigate to the Release Sales Orders for Picking window
• (N) Shipping > Release Sales Orders > Release Sales Orders
− Document Set: All Pick Release Documents
− Orders: Unreleased
− Order Number: your order number using purchase order XX-100
− Warehouse: M1
− Autocreate Delivery: Yes
2. Note your concurrent request ID:___________________
View Your Concurrent Request and Pick Slip
3. (M) View > Requests (B) Find All Requests
4. Identify the Batch Number in the parameters listing for your concurrent request
5. Note Batch number: _____________________
6. Note the delivery number associated with your pick slip
7. Delivery Number: _____________________________

View Delivery Number on Sales Order Form
8. Find your sales order either by number or by Customer PO: XX-100
9. In Order Summary Window select (B) Actions > Additional Order Information (T)
Deliveries
10. Verify the Delivery Number matches the value you found earlier on the pick slip.
Note: Only line 1.1 has release why? The other line on your order is scheduled to ship next
week.

Solution - Pick Release Sales Orders
Release Your Sales Order
1. Navigate to the Release Sales Orders for Picking window
2. (T) Order
− Orders: Unreleased
− Order Number: your order number using purchase order XX-100
4. (T) Inventory
− Warehouse: M1
5. (T) Shipping
− Autocreate Delivery: Yes
− (B) Concurrent
6. Note your concurrent request ID:___________________
View Your Concurrent Request and Pick Slip
8. Identify the Batch Number in the parameters listing for your concurrent request
9. Note Batch number: _____________________
10. Place your cursor on the concurrent request referencing your batch number from above
11. (B) View Output
12. Note the delivery number associated with your pick slip
13. Delivery Number: _____________________________
View Delivery Number on Sales Order Form
14. (N) Orders, Returns > Order Organizer
15. Find your sales order either by number or by Customer PO: XX-100

16. (B) Find
Deliveries
18. Verify the Delivery Number matches the value you found earlier on the pick slip.
Note: Only line 1.1 has release why? The other line on your order is scheduled to ship next
week.

Practice - Ship Confirm a Delivery
Overview
In this practice you will ship confirm the delivery.
Assumptions
Practice.
Tasks
Confirm a Delivery
1. Navigate to the Query Manager window and find your sales order referencing purchase
order XX-100
• (N) Shipping > Transactions (T) Lines
2. (B) Detail
− Shipped: 3
− Backordered: 2
− Staged: 0
3. Record freight costs

− Cost Type: Handling
− Amount: 10
4. Ship confirm
− Actions: Ship Confirm
5. Validate the following:

− Ship Option: Ship Entered Quantities
− Create Delivery for Staged Quantities : Checked
− Set Delivery In Transit: Checked
− Close Trip: Checked

6. Note your Interface Trip Stop request number:_____________________
View Ship Confirm Documents
8. View any desired output file
View Status of Sales Order Line
9. (N) Orders, Returns >Order Organizer
Find your sales order either by number or by Customer PO: XX-100
Deliveries
Note: The first line in the will have a delivery number and a status of closed. The second has
been backordered due to your actions during ship confirm. The third is Ready to release due to
the schedule ship date.

Solution - Ship Confirm a Delivery
Confirm a Delivery
1. Navigate to the Query Manager window
• (N) Shipping > Transactions (T) Lines

− Source System: Order Management
− Order Numbers: Your order number referencing Customer PO: XX-100
2. (B) Find
3. (B) Detail
− Shipped: 3
− Backordered: 2
− Staged: 0
4. (I) Save
5. (B) Done
− Actions: Freight Costs
6. (B) Go
− Cost Type: Handling
− Amount: 10
7. (B) Done
8. (T) Delivery
− Actions: Ship Confirm
9. (B) Go
10. Validate the following:

− Ship Option: Ship Entered Quantities
− Create Delivery for Staged Quantities : Checked
− Set Delivery In Transit: Checked
− Close Trip: Checked
11. Note your Interface Trip Stop request number:_____________________
12. (B) OK

View Ship Confirm Documents
14. View any desired output file
View Status of Sales Order Line
15. (N) Orders, Returns >Order Organizer
Find your sales order either by number or by Customer PO: XX-100
16. (B) Find
Deliveries
Note: The first line in the will have a delivery number and a status of closed. The second
has been backordered due to your actions during ship confirm. The third is Ready to release
due to the schedule ship date.

Practice - Define a Pick Slip Grouping Rule
Overview
In this practice you will define a pick slip grouping rule.
Assumptions
Practice.
Tasks
Define a Pick Slip Grouping Rule
1. Navigate to the Pick Slip Grouping Rules window
• (N) Shipping > Setup > Picking > Define Pick Slip Grouping Rules
2. Define a pick slip grouping rule

− Pick Methodology: User Defined
− Rule Name: XX-Subinventory
− Description: Group picking lines by subinventory
− Group By: Subinventory

Solution - Define a Pick Slip Grouping Rule
Define a Pick Slip Grouping Rule
1. Navigate to the Pick Slip Grouping Rules window
• (N) Shipping > Setup > Picking > Define Pick Slip Grouping Rules
− Pick Methodology: User Defined
− Rule Name: XX-Subinventory
− Description: Group picking lines by subinventory
− Group By: Subinventory
2. (I) Save

Practice - Define a Release Sequence Rule
Overview
In this practice you will define a release sequence rule.
Assumptions
Practice.
Tasks
Define a Release Sequence Rule
1. Navigate to the Release Sequence Rules window
• (N) Shipping> Setup > Picking > Define Release Sequence Rule
2. Define a release sequence

− Rule: XX-Oldest First
− Order: 2, Ascending
− Schedule Date: 1, Ascending

Solution - Define a Release Sequence Rule
Define a Release Sequence Rule
1. Navigate to the Release Sequence Rules window
• (N) Shipping> Setup > Picking > Define Release Sequence Rule
− Rule: XX-Oldest First
− Order: 2, Ascending
− Schedule Date: 1, Ascending
2. (I) Save

Practice - Define a Release Rule
Overview
In this practice you will define a release rule.
Assumptions
Practice.
Tasks
Define Release Rule
1. Navigate to the Release Rules window
• (N) Shipping > Setup > Picking > Define Release Rules
− Rule: XX-Rule
2. (T) Order
− Orders: All
− Scheduled Ship Date To: Today’s Date
− Requested Dates To: Today’s Date
3. (T) Inventory
− Warehouse: XX1
− Pick Slip Grouping Rule: XX-Subinventory
− Auto Allocate: Yes
− Auto Pick: Yes
4. (T) Shipping
− Release Sequence Rule: XX-Oldest First
− Autocreate Deliveries: Yes

Solution - Define a Release Rule
Define Release Rule
1. Navigate to the Release Rules window
• (N) Shipping > Setup > Picking > Define Release Rules
− Rule: XX-Rule
2. (T) Order
− Orders: All
− Scheduled Ship Date To: Today’s Date
− Requested Dates To: Today’s Date
3. (T) Inventory
− Warehouse: XX1
− Pick Slip Grouping Rule: XX-Subinventory
− Auto Allocate: Yes
− Auto Pick: Yes
4. (T) Shipping
− Release Sequence Rule: XX-Oldest First
− Autocreate Deliveries: Yes
5. (I) Save

Practice - Define a Shipping Role
Overview
In this practice you will define a shipping role.
Assumptions
Practice.
Tasks
− Name: XX-Clerk
2. (T) Trips
4. (T) Stops
6. (T) Deliveries
− Verify
7. (T) Lines/LPNs
9. (I) Save

Solution - Define a Shipping Role
− Name: XX-Clerk
2. (T) Trips
4. (T) Stops
6. (T) Deliveries
− Verify
7. (T) Lines/LPNs
9. (I) Save

Practice - Grant Access to a Role
Overview
In this practice you will grant access to a role.
Assumptions
Practice.
Tasks
Verify the shipping access given to your user
2. Query your user
3. (B) View Role
4. Note the differences between the role you assigned to your user earlier and the one you have
just created in a prior practice.

Solution - Grant Access to a Role
Verify the shipping access given to your user
2. Query your user
3. (B) View Role
4. Note the differences between the role you assigned to your user earlier and the one you have
just created in a prior practice.


Process Invoices
Process Invoices

Practice - Create an Invoice
Overview
In this practice you will create a receivables invoice.
Assumptions
Practice.
Tasks
Create an Invoice
Responsibility = Receivables Manager
1. Navigate to the Transactions window
• (N) Transactions > Transactions

− Source: Manual
− Class: Invoice
− Type: Invoice
2. Create an invoice for XX-Big City using the following information:
Line Number Item Number Quantity Unit Price Tax

1 CS03755 10 1500 Location
2 CS32698 5 1750 Location
3. Complete the invoice
4. Note Transaction Number: ____________________________________

Solution - Create an Invoice
Create an Invoice
1. Navigate to the Transactions window
• (N) Transactions > Transactions

− Source: Manual
− Class: Invoice
− Type: Invoice
2. (T) Main
− Ship To Name: XX-Big City
3. (B) Line Items
Line Number Item Number Quantity Unit Price Tax

1 CS03755 10 1500 Location
2 CS32698 5 1750 Location
4. (I) Save
5. Close Lines Window
6. (B) Complete
7. Note Transaction Number: ____________________________________

Practice - Copy an Invoice
Overview
In this practice you will create a copy an invoice.
Assumptions
Practice.
Tasks
Copy Invoice
1. Navigate to the Copy Transactions window
2. Query transaction you just created and create 6 invoices to be sent monthly
View the completed copy report
3. Select your concurrent request for the program Recurring Invoice Program and view it

Solution - Copy an Invoice
Copy Invoice
1. Navigate to the Copy Transactions window
2. Query transaction you just created

− 3. Rule: Monthly
− Number of Times: 6
4. (I) Save
5. Note Transaction Numbers:___________________________________________
View the completed copy report
6. (M) View > Requests (B) Find
7. Select your concurrent request for the program Recurring Invoice Program
8. (B) View Output

Practice - Create a Credit Memo
Overview
In this practice you will create a credit memo.
Assumptions
Practice.
Tasks
Create a credit memo associated with your first transaction
1. Navigate to the Credit Transactions window
2. Create a credit memo using the following information.

− Specify the first transaction you created
− Line %: 5

Solution - Create a Credit Memo
Create a credit memo associated with your first transaction
1. Navigate to the Credit Transactions window

− Specify the first transaction you created
2. (B) Find

4. (T) Transaction Amount

− Line %: 5
5. (I) Save
6. (B) Complete

Practice - Print a Transaction
Overview
In this practice you will print a transaction.
Assumptions
Practice.
Tasks
Print invoices
1. Navigate to the Standard Request Submission window
• (N) Print Documents > Invoices
2. Enter Parameters:
− Order By: Transaction Number
− Transaction Number Low: your first transaction number
− Transaction Number High: your first transaction number
3. Note Request Number: __________________________
View printed invoices
4. View your printed invoices.

Solution - Print a Transaction
Print invoices
1. Navigate to the Standard Request Submission window
• (N) Print Documents > Invoices
2. Single Request (B) OK

− Name: Invoice Print Selected Invoices
3. Enter Parameters:
− Order By: Transaction Number
− Transaction Number Low: your first transaction number
− Transaction Number High: your first transaction number
4. (B) OK
5. (B) Submit
6. Note Request Number: __________________________
7. (B) No
View printed invoices
8. (M) View > Requests (B) Find
9. Select line indicating the concurrent program Invoice Print Selected Invoices that has a
parent id referencing your request.
10. (B) View Output

Manual Receipts
Manual Receipts

Practice - Enter a Manual Receipt
Overview
In this practice you will enter a manual receipt.
Assumptions
Practice.
Tasks
Enter a manual receipt
1. Navigate to the Receipts window
• (N) Receipts > Receipts
2. Enter two receipts from XX-Big City using the following information:
• Enter receipt 1
− Receipt Number: XX-01
− Receipt Type: Cash
− Receipt Amount: $20,946.88
− Payment Method: Check-BofA
• Enter receipt 2

Solution - Enter a Manual Receipt
Enter a manual receipt

2. (T) Customer
3. (I) Save
4. (I) New Record

5. (T) Customer
6. (I) Save

Practice - Apply a Receipt
Overview
In this practice you will apply a receipt.
Assumptions
Practice.
Tasks
Apply your receipts
2. Query your receipt XX-01
3. Apply To: your first invoice transaction

Solution - Apply a Receipt
Apply your receipts
3. (B) Applications
4. Apply To: your first invoice transaction
5. (I) Save

Practice - Use Mass Apply
Overview
In this practice you will use Mass Apply.
Assumptions
Practice.
Tasks
Mass apply your receipts
3. (B) Mass Apply
4. (B) Preview
5. Select the Apply checkbox for:

− Select the transaction from your first invoice
− The invoice associated with your sales order
− Place any leftover amount On - Account

Solution - Use Mass Apply
Mass apply your receipts
3. (B) Mass Apply
4. (B) Preview
5. Select the Apply checkbox for:

− Select the transaction from your first invoice
− The invoice associated with your sales order
− Place any leftover amount On - Account
6. (I) Save


Practice - Define a Tax Code
Overview
In this practice you will define a tax code.
Assumptions
Practice.
Tasks
Define a Tax Code
1. Navigate to the Tax Codes and Rates window
• (N) Setup > Tax > Codes (T) Rates
2. Enter a tax code using the following information:

− Tax Code: XXTAX
− Tax Type: Sales Tax
− Taxable Basis: After Discount
− Tax Rate %: 10
− Sign: Credit
− Tax Class: Output
− Tax Account: 01-000-2520-0000-000

Solution - Define a Tax Code
Define a Tax Code
1. Navigate to the Tax Codes and Rates window
• (N) Setup > Tax > Codes (T) Rates

− Tax Code: XXTAX
− Tax Type: Sales Tax
− Taxable Basis: After Discount
− Tax Rate %: 10
− Sign: Credit
2. (T) Control
− Tax Class: Output
3. (T) More
− Tax Account: 01-000-2520-0000-000
4. (I) Save

Appendix A
Appendix A
Additional Practices

Order Management Setup
Order Management Setup

Practice - Define Transaction Types
Overview
In this practice you will define transaction types.
Assumptions
Practice.
Tasks
Responsibility = Oracle Management Super User, Vision Operations (USA)
1. (N) Setup > Transaction Types > Define
2. Enter Transaction Type name = XX Standard
3. Description = Standard Sales Order
4. Effective Dates = Today
5. Transaction Type Code = Order
6. Order Category = Mixed
7. Order Workflow = Order Flow - Generic
8. Save your Record
(B) Assign Line flows
9. Order Type = XX Standard
10. Line Type = Standard (Line Invoicing)

11. Process Flow = Line Flow Generic
12. Date = Today
New Line
13. Line Type = Return
14. Process Flow = Line Flow - Return for Credit Only
15. Date = Today
16. (B) OK
17. Default Return Line Type = Return
18. Default Order Line Type = Standard (Line Invoicing)
19. Save your record
20. Close the window.

Practice - Define Document Numbers
Overview
In this practice you will define document numbers.
Assumptions
Practice.
Tasks
Define Document Numbers
A. Define Document Sequences
1. (N) Setup > Documents > Define
2. Enter name = XX Standard
3. Application = Oracle Order Management
4. Effective Dates = Today
5. Type = Automatic
6. Initial Value = Choose a Number
7. Save and close the form
B. Verify Document Category
1. (N) Setup > Documents > Categories
2. Query under Name to find XX Standard

3. Verify that your category exists
C. Assign Documents
1. (N) Setup > Documents > Assign
2. Application = Oracle Order Management
3. Category = Choose XX Standard
4. Set of Books = Vision Operations (USA)
5. Sequence = XX Standard
6. Date = Today
D. Place an Order
• (T) Order Information and (T) Main
• Customer: XX-Big City Electronics
• Order Type: XX Standard
• Price List: Corporate
• Salesperson: Yours
2. (T) Line Items, (T) Main
Ordered Item Qty

XX-Palm Pilot 5
XX-Palm Case 5
[B] Book your work and note the order number started with your Numbering Schema.

Practice - Define Processing Constraints
Overview
In this practice you will define processing constraints.
Assumptions
Practice.
Tasks
Define Processing Constraints
A. Define Validation Templates
1. (N) Setup > Rules >Security > Validation Templates
2. Entity = Order Header
3. Template name = XX Template
4. Short Name = XX Temp
5. Validation type = Table
6. Validation Semantics
7. Column = Customer
8. Validation Op = = (Equal To)
9. Value String = XX Big City Electronics

B. Define Processing Constraint
1. Setup > Rules > Security > Processing Constraints
2. Query on Application for Entity Order Header
New Constraint
3. Operation = Update
4. Attribute = Payment Term
5. User Action = Not allowed
Conditions Tab
6. Group = Accept Default
7. Scope = Any
8. Validation Entity = Order Header
9. Record Set = Order
10. Validation Template = XX Template
11. User Message = “Define your message to be viewed”
Applicable to Tab
12. All Responsibilities selected
13. Save and close the form.
C. Defy the Constraint
2. Query your sale order from lab X
3. Adjust Payment Terms to 30/60/90
4. Save Your Order
5. Notice that your message now appears

Practice - Process a Drop Ship Order
Overview
In this practice you will observe the Workflow Process for an external (drop ship) order and the
interface with purchasing.
Assumptions
Practice.
Tasks
− (F) Log on as a Different User (This user has authorization as a buyer to approve
Purchase Orders)
− User Name = OMSUPV
Process a Drop Ship Order
A. Enter and book a Drop Ship order
2. (T) Order Information, (T) Main.
• Select San Mateo as the Ship To and Bill To if not defaulted
• Order Type: Mixed
• Price List: Corporate
• Salesperson: Scott Jones
• Currency: USD.

3. (T) Others
• Payment Terms: 30 Net
• Tax Handling: Standard
• Warehouse: M1
Ordered Item Qty Source Type Receiving Org

XX- Phone 2 External M1
5. [B] Book and note your order number _____________.
NOTE: The Instructor will now Explain and run the required Workflow Background
Process and Requisition Import in order for you to complete this lab. The steps they
will follow is a such:
Running the Workflow Background Process
This process must be run in order to push the line through the seeded Fulfillment Deferred
activity within the line workflow.
Navigate to Inventory > Workflow Background Engine
Parameters
• Item Type: OM Order Line
• Process Deferred: Yes
• Process Timeout: NO
• Click OK
• Click Submit
• View > Request
• Select “View all my Request”
• Click Find
The Workflow Background Engine should be competed Normal. Close the form.

Running the Requisition Import Process
This process must be run in order to push the line from Order Management to Purchasing
for further processing.
(N) Order, Returns > Requisition Import
Parameters
• Import Source = Order Entry (leave all other as defaulted)
• Close out the Parameters form and submit your request (Note your request ID)
• Verify your request has completed (View - Requests) Enter your request ID and then
choose the Find button.
Continue your lab once this request has been completed successfully.
7. Verify that the order line is “Purchase Released.” (If PO authorization is not set up properly
you will not see this in WFS)
B. Confirm Your Requisition
• In the Find window, enter the order number
• [B] Find
• [B] Open Order
2. (T) Line Items
3. [B] Actions. Select Additional Line Information from the LOV
4. (T) Drop Ship and view the requisition information
5. Confirm that status is “Approved” record your requisition number here:

_________________
C. Create and Approve a Purchase Order
1. Select Purchasing, Vision Operations (USA)
2. (N) Auto create.
• [B] Clear

• Requisition: Enter the requisition number from above.
• [B] Find
• [Control + Left Click mouse] to select the line item
• [B] Automatic and then [B] Create
• Note the PO number _______________ click OK. Click OK again
• Wait, PO will open
• Supplier: Advanced Network
• Supplier Site: Santa Clara (Defaults)
• Ship To: Defaults
• [B] Shipments
• [B] Receiving Controls and verify receipt routing is set to Direct Delivery
• [B] OK, Close Receiving Controls and Shipments forms. [B] Approve.
• Approve Document form pops up with options for additional notification [B] OK
• Note status in header of PO should be approved
3. (N) Receiving > Receipts - Occurs when supplier notifies you. Relies on communication
methods you establish with your supplier.
4. Organizations: (M1 Seattle)
• (T) Supplier and Internal
• Purchase Order: Enter the PO number from above [B] Find
• The purchase order opens up the Receipt Header form and shows your supplier
• Click on the background screen to access the PO lines
• Check the line checkbox on the left
• You may have to supply M1 as the location and DROP SHIP as the sub inventory
5. (I) Save your work
6. (F) Log on as a Different User - Log back in under your own log in

7. (F) Switch Responsibility. Select Order Management, Vision Operations (USA)
• In the Find window, enter the order number
• [B] Find
• [B] Open Order
• Select Line Items
• [B] Actions. Select Additional Line Information
• Select Drop Ship and view the information


Create Internal Orders

Practice - Create Internal Orders
Overview
In this practice you will create internal orders. You have a shortage of an item in your Seattle
manufacturing plant and a surplus of the same item in the Boston manufacturing plant. Create an
Internal Requisition for the items.
Overview of Steps to Process an Internal Order:

− Create Internal Customers (Pre-Req)
− Create Shipping Networks between pre-defined Organizations (Pre-Req)
− Create and approve an Internal Purchase Requisition
− Execute the “Create Internal Orders” concurrent process
− Execute the Order Import concurrent process. This process imports the purchase
requisition and creates an internal sales order.
− Book the internal sales order in the same way as a standard order. However, internal
sales orders do not create invoices.
Assumptions
Practice.
Tasks
A. Verify the Internal Customer have been created.
(N) Customer Standard
1. Search for the Customer ‘Vision’
2. Select any address and Open

3. In the Classification tab, note the customer has been created as an Internal Customer.
4. Close the form
B. Verify Shipping Networks have been created.
1. (N) Inventory > Set Up > Organizations>: Shipping Networks
2. Verify (Search to see that a network Exists between Seattle (M1) and Boston (M2)
3. Open up the Network to view the details
4. Close the form
C. Create and Approve an Internal Purchase Requisition
1. (N) Purchasing > Requisition > Requisition
2. Requisition Header
• Type: Internal Requisition
3. In Requisition Lines
• Type: Goods
• Item: CM13139
• UOM: Each
• Qty: 3
• Need By: Today’s date +7
4. In Requisition Footer
• Destination Type: Inventory
• Organization: Seattle Manufacturing
• Location: M1 Seattle
• Sub inventory: FGI
• Source: Inventory
• Organization: Boston
• Sub inventory: FGI

5. Save your work and record the requisition number ______________.
6. [B] Approval.
7. In the Approve Document window, click OK.
D. Execute the “Create Internal Orders” Concurrent Process
1. (N) Reports > Run > Single Request
2. Select “Create Internal Sales Order from the LOV
3. Record the Request ID ____________.
4. Verify that the request status is “Completed, Normal”
E. Execute the Order Import Concurrent Process
1. (N) Orders, Returns> Order Import
2. In the Parameters window, enter:
• Order Source: Internal
• Validate Only: No
3. Execute the process and record the Request ID
4. Verify that the request status is “Completed, Normal”
F. Book the Internal Sales Order
2. Query by the requisition number to find your Sales Order
3. (B) Open your order ‘Note the Customer’
4. [B] Book your order
5. View the Sales Order Line - Additional Line information to see the requisition that was
created.

Practice - Create and Issue a Quote to Order Management
Overview
In this practice you will learn how Quotes in Oracle CRM applications are imported into sales orders.
Assumptions
Practice.
Tasks
− User Name = rabbott
Creating and issuing a quote to Order Management
1. Customer Support
2. Navigation Path: Order Capture > Order Capture
3. First Name: Beate (from the pick list)
4. Organization: Computer Service and Rentals (from the pick list)
5. Item: AS54888
6. Qty: 2
7. Click the Add To Cart Button
8. Go down to the Bill To address tab and enter the following bill to address from the pick list:
301 Summit Hill Drive, Chattanooga, TN
9. Click in the box Ship to the Same Address in the upper right hand corner of the Bill To
address tab
10. Click on the Save the Quote button


11. Click on the Book the Order button
12. Once you click the book the book the order button, a new form opens up and note the
Confirmation Num. in the upper left hand corner. This is your Sales Order Number.
13. Click on the OK button.
14. Note at the top of the Order Capture form, the Quote Number.
15. Exit out Oracle and re-log in using the same URL; however, your user name = omsupv and
your password = welcome.
16. Select the Order Management SuperUser Responsibility
17. Navigate to Orders, Returns > Order Organizer
18. Order Number: Order Number from Step # 12
19. [B] Find
20. [B] Open
21. (T) Others
• Order Source: Order Capture
• Order Source Reference: Quote number and version
22. Close the form.


Pricing
Pricing

Practice - Create Point and Range Price Break Modifiers
Overview
In this practice you will create point and range price break modifiers.
Assumptions
Practice.
Tasks
• (N) Pricing > Modifiers > Modifier Setup
2. Create a Modifier using the following details:
• Type: Discount List
• Number: XX-Price Break
• Active: Unchecked
• Automatic: Checked
• Description: Enter a meaningful description
3. (T) Modifiers Summary

Level Modifier Pricing Phase Bucket Product Product Attribute Value
Modifier
Type Attribute
Number

1 Line Price Break 80 Modifier 1 Item XX-Palm Pilot
Header for BOOK Number
Event
2 Line Price Break 80 Modifier 1 Item XX-Pager
Header for BOOK Number
Event
(Modifier Summary continued)

Volume Type Break Type UOM Adjustment Type
Item Quantity Range Ea Discount
Item Quantity Point Ea Discount
3. Place your cursor on the line for the XX-Palm Pilot and click on Define Details button.
Enter the following.
Value From Value To Application Method Value
1 100 Amount 0
101 400 Amount 50
401 700 Amount 100
701 999999 Amount 150
5. Close the Define Details window and return to the Modifier Summary window.
6. Place your cursor on the line for the XX-Pager and click on the Define Details button. Enter
the following.
Value From Value To Application Method Value
1 100 Percent 0
101 400 Percent 5
401 700 Percent 10
701 999999 Percent 15

Practice - Enter an Order Using Price Break Modifier
Overview
In this practice you will enter an order using the price breaks modifier.
Assumptions
Practice.
Tasks
2. Create an order using the following details:
• Ship To: Defaults. If not, click on Ship To and select from LOV
• Bill To: Defaults. If not, click on Bill To and select from LOV
• Price List: Corporate ( or TBD)
• Sales Person: Abbott, Rachel
3. (T) Others
• Payment Terms: 30 Net

• Warehouse: M1
• FOB: Destination
• Sales Channel: Commercial
• Shipping Method: UPS
• Freight Terms: Prepaid
4. (T) Line items
Line Ordered Item Quantity UOM Price (retrieved as)

1.1 XX-Palm Pilot 400 Ea. $662.50 (Range)
2.1 XX-Pager 400 Ea. $665.00 (Point)
Note that in the calculation for the Palm Pilot, the first 100 are not applicable for the
discount. The Modifier calculation is based on the applicable volume of 300 divided by the
quantity ordered (400). In other words ¾ X 50 = 37.50 discount per item
The calculation for the Pager simply applies 5% of the base price based on the order point of
400.
5. (I) Save your work, and note the order number ___________.
6. Close the forms and return to the menu.

Practice - Create Tiered (Cascading) Modifiers
Overview
In this practice you will create tiered modifers.
Your customer is eligible for 4 different discounts and a surcharge.
• Three 10% discounts will be applied when the order has been entered and saved
• A $13 surcharge and a 5% discount will be applied when the order has been booked
• The first two 10% discounts are added together and applied to the defaulting price
• The third 10% discount and $13 surcharge are to be applied to the resulting price
• The 5% discount will then be deducted from the result.
Assumptions
Practice.
Tasks
Create Tiered (Cascading) Modifiers
2. Create a modifier using the following details:
• (T) Main

• Type: Discount List from LOV.
• Number: XX-Discount List 2
• Active: Unchecked
• Name: XX-Discount List 2
• Version: Optional
• Automatic: Checked
• Start Date: Optional;
• Description: Tiered Discount Modifier
3. [B] List Qualifiers. When the Qualifier List pops up, cancel and create the following
qualifiers
Grouping Context Attribute Operator Value From
No. (= units)
1 Customer Customer Name = XX-Big City Electronics
1 Modifier List Price List = XX-Price List 4
4. (T) Modifiers Summary, (T) Discounts/Charges
5. (I) Save your work after entering each Modifier.

Modifier Level Modifier Pricing Phase Bucket Application Value
Number Type Method
1** Line Discount 10(List Line Adjustment) 1 Percent 10
2 Line Discount 10(List Line Adjustment) 1 Percent 10
3 Line Discount 10(List Line Adjustment) 2 Percent 10
4 Line Surcharge 80 (Modifiers for BOOK 2 Lump Sum 13
Event)
5 Line Discount 80 (Modifiers for BOOK 3 Percent 5
Event)
Go back to the Header of the Modifier and select the Active checkbox.

Practice - Enter an Order Using Tiered (Cascading) Modifiers
Overview
In this practice you will create an order.
Assumptions
Practice.
Tasks
Create an Order Using Tiered (Cascading) Modifiers
3. (T) Order Information, (T) Main
• Price List: XX-Price List 4
• Salesperson: Lewis, Mr. David
• Ordered Item: XX-Palm Case

• Qty: 1
Note the default price in the Unit Selling Price field. The value should be $100.
5. (I) Save your order. Record your order number _____________ .
6. Note the new price in the Unit Selling Price field. The value should be $72.
• [B] Actions
• Select ‘View Adjustments’ from the LOV. You should see that all three 10% discounts
have been applied.
• [B] Cancel
• [B] Book Order. A notification is displayed stating that the order has been booked.
• [B] OK
7. (T) Line Items
• Note the new price in the Unit Selling Price field. The value should be $80.75.
• [B] Actions
• Select ‘View Adjustments’ from the LOV. You should now see that all five discounts
have been applied.
• [B] Cancel

Practice - Resolve Group Modifier Incompatibilities
Overview
In this practice you will resolve group modifier incompatibilities.
You have now determined that XX-Big City Electronics is only eligible for 2 of the 10%
discounts along with the $13 surcharge and the 5% discount.
Assumptions
Practice.
Tasks
2. Create a modifier using the following details:
3. (T) Main
• Type: (I) Flashlight. Find XX-Discount 2
4. (T) Modifiers Summary. Modify the following modifier numbers
Modifier Number Incompatibility Group (LOV) Precedence

1** Level 1 Incompatibility 20
3 Level 1 Incompatibility 10

Practice - Enter an Order Using Incompatibility Resolution
Overview
In this practice you will enter an order using incompatibility resolution.
Assumptions
Practice.
Tasks
1. Navigate to the Sales Order window
• (N) Orders, Returns > Sales Order
3. (T) Order Information, (T) Main
• Customer: Select XX-Big City Electronics
• Price List: XX-Price List 4
• Salesperson: Lewis, Mr. David
• XX-Palm Case
• Quantity: 1

• The default price in the Unit Selling Price field should be $100.
5. (I) Save your order and note the order number _____________
• The new price in the Unit Selling Price field should be $81.
• [B] Actions
• Select 'View Adjustments' from the LOV to see that only two 10% discounts are applied.
Note which “List Lines” from which “Buckets” were applied.
• [B] Cancel
• [B] Book Order. A notification displays stating that the order is booked.
• [B] OK
6. (T) Line Items
7. The new price in the Unit Selling Price field should be $89.30.
(N) Pricing> Modifiers
8. Re-query your modifier List
9. Deactivate and Save.


Shipping
Shipping

Practice - Pick Release with Manual Move Orders
Overview
In this practice you will use pick release with manual move orders.
This practice is design to have your company pick release Business World’s order and perform a
manual move order for inventory allocation. You will then submit your request to be processed
and it ends by having you ship confirm your created sales order.
Assumptions
Practice.
Tasks
A. Sales Orders
2. Select Customer Business World from LOV
Address defaults
3. Mixed order defaults as the order type
4. Corporate defaults as the price list
5. Howard Sprague defaults as the sales person
(T) Line Items
6. Select AS54888 as the Item from LOV


7. Enter the Qty: 10
8. UOM = Ea
9. Howard Sprague defaults as the sales person
10. Choose the Book Order button
11. Record your order number
B. Release Sales Orders
2. Enter the order number
3. Leave Scheduled Ship Dates and Requested Dates Blank
(T) Shipping
4. Select Order Number as the Release Sequence Rule from LOV
(T) Inventory Tab
5. Select M1 as the Warehouse from LOV
6. Select departure, delivery as the pick slip grouping rule from LOV
7. Auto Detail: Yes
8. Auto Pick Confirm: NO
9. Choose the Concurrent button (record concurrent request number and batch number). Close
the window.
10. From the View Menu select requests
11. Choose the Find button.
12. Find your ID # for the “Pick Selection List Generation” request. Once the request has
completed normally, close the window. Concurrent request should read completed normal.
C. Transact Move Orders
1. Navigate to the Transact Move Orders window
• (N) Shipping > Move Orders > Transact Move Orders

2. Select the Seattle Warehouse (M1)
(T) Pick Wave Tab
3. In the sales order field, choose a LOV
4. Select the Combinations button
5. Input your sales order number, then select OK
6. Select the Find button.
7. Select the checkbox in the far left of the move order line.
8. Select the Transact button, close this window
You have just performed your move order!
D. Transactions
Navigate to the Transactions window:
• (N) Shipping > Transactions
1. Choose the Flash Light icon from the Menu Bar
2. Select lines search.
3. Enter your first order number
4. Choose the Find button
5. Select the Delivery tab (T)
6. Select the Details button
7. Enter a tracking waybill number
8. Select ship confirm from the drop down area - Go
9. Select the Ship All radial button.
10. Select the OK button.
11. Acknowledge the message regarding inventory interface being ran and close the Shipping
Transaction window.


Appendix B
Appendix B
Order to Cash
Full Business Flow Case Study

R11i Key Business Flows
R11i Key Business Flows
Transfer Ordering
Accountin
g to
General Schedulin
Ledger g
Ordering
Cash
Manageme Accounting Shipping
nt
Collecting
to
Receivables
Invoicing

Practice - Full Order to Cash Business Flow
Overview
In this practice you will follow the Order to Cash, full business flow.
Lab Instructions
• Pair up with another student if possible.
• Follow the instructions carefully.
• Replace XX with your terminal identifier or initials
• Use the following navigation guides

Convention Meaning Example
(B) Click on a button (B) Submit
(T) Click on a tab (T) Items
(M) Click on a menu (M) View > Requests
(N) Navigate to a window (N) Purchase Orders > Purchase Orders
(I) Click an Icon (I) Attachment
(L) Click on a hypertext link (L) Home Page
Assumptions
Practice.
Tasks

Full Order to Cash Business Flow Case Study
1. Regular and Return (with receipt) orders.

A. Create a Sales Order
(N) Order Information and (T) Main
• Customer: XX - Big City Electronics
• Price List: XX PRICE LIST 1
• Salesperson: XX YOUR SALESPERSON
(T) Line Items
• Ordered Item: XX-Palm Pilot
• Qty: 1
• Book your order
• Note your Order Number
B. Pick Release and Auto Pick Confirm the Order
Pick Release creates Move Order Lines. Pick confirmation executes the subinventory transfer
that moves the material from its source location in the warehouse to the staging location.
(N) Shipping > Release Sales Orders > Release Sales Orders
1. (T) Order
• Order Number: From above
• Scheduled Ship Dates: Leave Default
• Requested Dates: Leave Default
2. (T) Shipping

• Release Shipping Sequence Rule: Order Number (LOV).
• Autocreate Delivery: Yes
3. (T) Inventory
• Warehouse: M1 (LOV)
• Pick Slip Grouping Rule: Departure, Delivery (Defaults)
• Auto Allocate: Yes (Defaults)
• Auto Pick Confirm: Yes Defaults)
• Default Stage: Staging Sub-Inventory: Staging 1
• [B] Concurrent. Note request number ______ and batch number_______.
• [B] OK. Close the window.
4. (M) View > Requests.
• Select “View all my Requests”
• [B] Find
• The request status for the Pick Selection List Generation and Pick Slip Reports should be
“Completed, Normal. Close the form.
C. Ship Confirm the Order
Ship confirming removes the existing reservations and performs the sales order issue transaction
(N) Shipping > Transactions
1. (I) Flash Light
• Select the Lines Search button
• Enter your order number.
• [B] Find
2. (T) Lines/Containers
• [B] Detail

• Enter the shipped amount
• [B] Done
3. (T) Delivery
• [B] Details
• Enter a tracking Waybill number
• Actions. Select Ship Confirm
• [B] Go.
• [B] Ship All in the Confirm Delivery Form. Leave remaining defaults
• [B] OK
• A message will display to inform you that the inventory interface is triggered. Note the
Request Number _____________.
4. Close the Shipping Transaction window. You can now view the shipping and invoicing
details for the item.
Note D & E on the Vision database will run together.
The instructor may be running the Workflow background engine at regular intervals.
D. Run the Workflow Background Process
1. Navigate to Inventory > Workflow Background Engine
2. Parameters
• Process Time-out: NO
• Click OK
• Click Submit
• View > Request
• Click Find

• Work flow Background Engine should be competed Normal. Close the form.
E. AutoInvoice
(N) Interfaces > AutoInvoice
1. Single Request
2. Name: Autoinvoice Master Program
3. Parameters
• Number of Instances: 1
• Invoice Source: Order Entry
• Default Date: Current Date
• (Low) Sales Order Number: Current Order Number
• (High) Sales Order Number: Current Order Number
• Click OK
• Click Submit
• View > Request
• Click Find
F. Viewing the Invoice
(N) Transactions > Transactions
1. Click on the flashlight
2. Enter the Sales Order Number
3. Click Find
4. This is the invoice that was created in Accounts Receivables

5. Note the Number field in the upper left hand corner. This is your invoice number for your
order.
F. Entering the Return
Needed to return the original Ordered Item
Orders, Returns > Sales Orders
Order Information and (T) Main
1. Customer: XX - Big City Electronics
2. Order Type: Return Only
3. Price List: Corporate
4. Salesperson: Lewis, David
(T) Line Items
5. Ordered Item: XX-Palm Pilot
6. Qty: 1
Line Items, (T) Returns
7. Return Reason: Damaged Product.
8. Reference Field
• Reference Type: Sales Order
• Order Number: Order Number from the order above (select from the pick list)
• Order Line: 1.1 (select from the pick list)
9. Book your order
10. Note your order number
View your line workflow at this point and it should be at Return Receiving - Line. Double
click on Return Receiving - Line and notice that it is at Waiting for Receiving. The next step
will take you through receiving you return item.
H. Receiving the Return
Responsibility: Inventory, Vision Operations (USA)

(N) Inventory > Transactions > Receiving >Receipts
1. If needed: Choose M1 for your organisation
2. (T) Customers
• RMA NUM: Order Number of the Return Order
• Click Find
• Click anywhere on the bottom half of the screen to open the receipts screen
• Check the box beside the appropriate line to select that line
• Destination Type: Inventory
• Subinventory: CustReturn
• Save
View your workflow, and notice that it has moved to Fulfil - Deferred which means we need to
run the Workflow Background Process to push this order past this step, into Receivables in
order for it to close.
Note I & J on the Vision database will run together.
The instructor may be running the Workflow background engine at regular intervals.
I. Running Workflow Background Process
1. Navigate to Inventory > Workflow Background Engine
2. Parameters
• Process Time-out: NO
• Click OK
• Click Submit
• View > Request
• Click Find

J. AutoInvoice
Switch responsibilities to Receivables, Vision Operations (USA)
1. Navigate to Interfaces > Autoinvoice
2. Single Request
3. Name: Autoinvoice Master Program
4. Parameters
• Number of Instances: 1
• Invoice Source: Order Entry
• Default Date: Current Date
• (Low) Sales Order Number: Current Order Number (Return Order Number)
• (High) Sales Order Number: Current Order Number (Return Order Number)
• Click OK
• Click Submit
• View > Request
• Click Find
• Autoinvoice should be competed Normal. Close the form.
K. View the Credit Memo
1. Navigate to Transactions > Transactions
2. Click on the flashlight
3. Enter the Sales Order Number (Return Order Number)
4. Click Find
5. This is the credit memo that was created in Accounts Receivables
6. Note the Number field in the upper left hand corner. This is your invoice number for your
order.

2. Check The Customers Account
Navigation Path: (N) Collections > Customer Account
Query back your customer either by Customer or Collector
Review the ageing on the customers account to decide what specific actions will be required.
• Select the Ageing button
• Review the Ageing on the screen .
• Review the Key Indicators.
• Check the History of all correspondence.
• Check the Credits not aged , the invoices in dispute and the pending adjustments
• Review any other information by selecting the appropriate buttons
3. AR Online - iReceivables
Navigation Path: iReceivables Internal
• Change Responsibility to iReceivables Internal
• Search for the Customer ‘ XX Big City Electronics’
• View the Account
• Select a Highlighted Document Number and review
• Click on Dispute button............


Summary
Summary
In performing these practices, you should have

an understanding of the flow of transactions and
the implications of system implementation
decisions for Oracle Order to Cash.



Order To Cash

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11i Order to Cash

Fundamentals Ed. 2.0

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Order to Cash Lifecycle Overview .................................................................................................................1-1

Copyright © Oracle Corporation, 2003. All rights reserved.

11i Order to Cash Fundamentals Ed. 2.0 Table of Contents

Copyright © Oracle Corporation, 2003. All rights reserved.

11i Order to Cash Fundamentals Ed. 2.0 Table of Contents

Copyright © Oracle Corporation, 2003. All rights reserved.

11i Order to Cash Fundamentals Ed. 2.0 Table of Contents

Copyright © Oracle Corporation, 2003. All rights reserved.

11i Order to Cash Fundamentals Ed. 2.0 Table of Contents

Copyright © Oracle Corporation, 2003. All rights reserved.

11i Order to Cash Fundamentals Ed. 2.0 Table of Contents

Copyright © Oracle Corporation, 2003. All rights reserved.

11i Order to Cash Fundamentals Ed. 2.0 Table of Contents

Copyright © Oracle Corporation, 2003. All rights reserved.

11i Order to Cash Fundamentals Ed. 2.0 Table of Contents

Copyright © Oracle Corporation, 2003. All rights reserved.

11i Order to Cash Fundamentals Ed. 2.0 Table of Contents

Copyright © Oracle Corporation, 2003. All rights reserved.

11i Order to Cash Fundamentals Ed. 2.0 Table of Contents

Copyright © Oracle Corporation, 2003. All rights reserved.

11i Order to Cash Fundamentals Ed. 2.0 Table of Contents

Copyright © Oracle Corporation, 2003. All rights reserved.

11i Order to Cash Fundamentals Ed. 2.0 Table of Contents

Copyright © Oracle Corporation, 2003. All rights reserved.

11i Order to Cash Fundamentals Ed. 2.0 Table of Contents

Copyright © Oracle Corporation, 2003. All rights reserved.

11i Order to Cash Fundamentals Ed. 2.0 Table of Contents

Copyright © Oracle Corporation, 2003. All rights reserved.

11i Order to Cash Fundamentals Ed. 2.0 Table of Contents

Copyright © Oracle Corporation, 2003. All rights reserved.

11i Order to Cash Fundamentals Ed. 2.0 Table of Contents

Copyright © Oracle Corporation, 2003. All rights reserved.

11i Order to Cash Fundamentals Ed. 2.0 Table of Contents

Copyright © Oracle Corporation, 2003. All rights reserved.

11i Order to Cash Fundamentals Ed. 2.0 Table of Contents

Copyright © Oracle Corporation, 2003. All rights reserved.

11i Order to Cash Fundamentals Ed. 2.0 Table of Contents

• Knowledge of the overall Order Entry to Bank Reconciliation Process

• Ability to navigate Oracle Applications

• 11i Navigate Oracle Applications

How This Course Is Organized

Copyright © Oracle Corporation, 2003. All rights reserved.

11i Order to Cash Fundamentals Ed. 2.0 Table of Contents

Oracle Receivables User Guide, Release 11i A80838-03

Oracle Order Management User’s Guide A88765-04

Oracle Trading Community Architecture Administration User B10854-01

Oracle Receivables Tax Manual A80828-01

Oracle Advanced Pricing User’s Guide A90830-04

Oracle Shipping Execution User Guide A77030-05

Oracle Application’s System Administrator’s Guide A96154-03

• System release bulletins

• Installation and user’s guides

Copyright © Oracle Corporation, 2003. All rights reserved.

11i Order to Cash Fundamentals Ed. 2.0 Table of Contents

Copyright © Oracle Corporation, 2003. All rights reserved.

11i Order to Cash Fundamentals Ed. 2.0 Table of Contents

Passwords DROP USER scott

Lowercase Syntax variables CREATE ROLE role