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Oracle Applications (EBS)

Order Management - OM

Crisp Handout

11i or R12

Wednesday, January 15, 2009 1/5

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Order Management setup:
1. System parameters (Item validation org) 2. Customer system options
3. Price list setup 4. Customer profile class
5. Customer creation 6. Transaction type
7. Document sequence 8. Assign sequence

Accounts receivable setup:
1. Transaction source 2. Transaction type
3. Auto accounting 4. Remit to address
5. Open GL period 6. update AR trn source,type in OM TT

customer items are not internally stocked, more economical if the supplier delivers the items
directly to the customer location, Fully trading, we do not interact in any of the physical
activities, we manage with only information, No space/infrastructure for storage, Large qty is
not available in our warehouse, The customer requires the material very urgently even the
transport time makes difference, The supplier must be a renowned guy.

Step and process steps:
Slno Description Order line status Concurrent
1Item attribute (purchased, purchasable, list price, not internal)
2Enter sales order, source type=external , save Entered
3Book the order Booked
4Run: Workflow backround process Awaiting receipt ADS, Req import, create releases
5Auto create, query with Sales order no, approve ,,
6Receive the material (logical receipt) Shipped Receiving transaction processor
7Run: Workflow backround process Closed Autoinvoice master program

Back -to Back
Replenish to order process, Pegging (Hard reserving), Requisition must be identified as CTO,
Upon receipt from supplier, an auto reserve takes place, Trading business, due to capacity
constraints, the supplier should not know our customers.

Step and process steps:
Slno Description Order line status Concurrent
Item attribute (purchased, purchasable, list price, not internal,
ATO, Build in WIP)

2Enter sales order, source type=internal , save Entered
3Book the order Supply eligible
4Actions ->progress order (create supply order eligible) PO- req requested ADS, Req import, create releases
5After completing the concurrents PO- req created
6Auto create, query with Sales order no, approve PO- created
Receive the material PO-received/ Awaiting
Receiving transaction processor
8Launch pick release ,, Pick selection list generation, pickslip report
9Pick confirm (transact move order) Picked
Ship confirm Shipped Bill of lading, Packing slip report, commercial
invoice, Interface trip stop
11Run: Workflow backround process Closed Autoinvoice master program

ISO Internal Sales Order
Assuming that both the orgs are in different locations, Transfer Cost & Transit time is
significant to the client

Item attribute : Internal ordered, Internal order enabled, Assign the item to both the orgs
Shipping network : ensure internal order required checked
Destination org's location requires restriction
Destination org requires customer association
Purchase options : Internal requisition -> Order type, Order source
Requisition approval process setup in PO (Hierarchy, Document type, Approval group, Approval
Proile option PO:Legal requisition type=both

1.Create internal requisition, source:Inventory, destination & source info, approve
2.Run: create internal orders
3.Run: Order import, source:order import, ref:requisition
4.Query the order in order organizer
5.Launch pick release 2/5

6.Transact move order
7.Ship confirm

PTO MODEL (only configuration, no manufacturing)
8.Create items (Model, Option class, components), purchased, not build in WIP
9.Create BOM, (create common bill to IVO)
10.Enter sales order, (item = Model)
11.Select the configuration (choose the options), these items will be populated in the SO
12.Book the sale order (Model & option class booked ; options-awaiting shipping)
13.Pick release, pick confirm, Ship confirm

PTO/ATO kit/item (no configuration, no manufacturing) all are included items, after
booking all items will be displayed
14.Create item (bom type: standard ; Model: ref PTO model)
15.Create BOM (do not enter the components, tools->create configuration)
16.Enter sales order (do not select the configuration, it will populate the included items)
Note : Manufacturing will happen for ATO item

ATO MODEL (configuration, manufacturing)
17.Create items (Model, Option class, components), purchased, build in WIP
18.Create routing (resource, department, std operations, operations)
19.Create BOM, (create common bill to IVO)
20.Enter sales order, (item = Model)
21.Select the configuration (choose the options), these items will be populated in the SO
22.Book the sale order (status: booked)
23.Actions -> progress order-create configuration eligible, Star* item created (status: supply
eligible-star item, booked-components)
24.In Star item, Actions -> progress order-create supply order eligible, (status: production
open-star item, booked-components ; concurrent: Autocreate final assembly, unreleased DJ
25.Complete the Job order (Status: Awaiting shipping-star item, booked-components)
26.Shipping process (pick release, pick confirm, ship confirm)

BSA Blanket Sales Agreement
It tests basic functionality surrounding blanket sales agreements. It creates a blanket
agreement using a negotiation flow and review its consumption.

Create a blanket agreement using a negotiation flow
Progress the negotiation until accepted
Test sales order consumption when linked to the agreement
Tests RMA consumption when RMA is linked to the sales order

For this flow, we assume that you have the seeded workflows for the agreement, a valid standard
item (orderable finished good item), the item is assigned to a valid price list and enough
available quantity in a shippable subinventory. It also assumes that you have valid transaction
types for sales orders and for RMAs.

1.1. Create a transaction type for the blanket agreement
2.2. Create sequences and assign them to the transaction type
3.3. Create a blanket agreement
4.4. Review the negotiation workflow
5.5. Enter customer acceptance
6.6. Review Workflow status
7.7. Create a sales order from the agreement
8.8. Add an order line and book the order. Verify the consumed quantities

Ship set : All lines of customers to be shipped at the same time,same WH, same date and same SO.

Arrival set : To arrive at cust. Location ( ship to) at the same time but from diff. WH and diff
SO. If across supply chain, ASCP will co-ordinate. 3/5

Fulfillment set : Grouping all the lines the customer would like Invoiced at the same time. Non-
shippable items will wait for the shippable items to be ship confirmed. An order line can belong
to multiple fulfillment sets.

RMA Return material authorisation: items are being returned from the customer due to some
reason, we make the RMA and reasons like damage. Types(RMA with credit policy, with receipt and
credit, with receipt and no-credit, with repair, with replacement)

Back-order: when the items have been picked and staged due to some emergency like order
cancelled or no space in the vehicle then the staged qty should be returned back to inventory.

Container item relationship: define the max qty of items that can be packed into a container, to
automatically calculate the no of containers required to pack the items.

Sale order additional header info.: holds, deliveries, Invoices/credit memos, Quantity history,

Sale order additional line info.: holds, returns, deliveries, Invoices/credit memos, Internal
requisition, dropship, Quantity history, Retrobilling

Processing constraints: define the conditions and status at which an update can be made to an
entity, (Ex, the order line can't be deleted after shipping)

Delete constraints: prevents from deletion of item, bill and routing

Quick codes / lookup codes: seeded codes used in the system like LOVs (hold types, release
reasons, cancellation codes, freight terms, shipment priorities, credit cards, note usage
formats, sales channels)

Delivery lines: Sales order lines released for shipping
Trip: Instance of a specific shipment leaving our warehouse with deliveries, carrier specific,
must have atleast 2 stops.
Stop: is a pickup and drop-off location
Delivery leg: represented by BOL and consists of 2 stops (one pickup & drop-off)

Shipping Rules:
Release sequence rule: sequence in which order lines are allocated to inventory like outstanding
value, schedule date, departure date, shipment priorities, order)
Pickslip grouping rule: how the allocated lines are groupped in the pickslip report. (group-by,
common, manufacturing) like, ship-to, delivery, sub-inv
Release rule: this will default the values in release sales order form. It will have release
sequence rule, pickslip grouping rule, auto-allocate, auto-pickconfirm
Ship confirm rule: this will default the values in ship confirm form.
ATP rule: used to arrive the schedule ship date, backward & forward consumptions are to utilise
the surplus, the earliest available date. (ATP rule = onhand+supplydemand)

Credit check rule:
validate the order to check whether the customer has sufficient credit limit or not.
control is available in 3 areas (Order type, customer profile class, payment terms)
Rule can be applied in 4 areas (ordering, picking/purchase release, packing, shipping)
1.Define payment terms (enable credit check)
2.Customer profile class (set credit limit for each currency)
3.Create customer (update profile class, payment terms, credit limit)
4.Define credit rule
5.update the rule in transaction type

Workflow: sequence of events that occur in processing of orders, lines, returns, automatically
excutes functions, sends notifications, maintains the history of completed activities.
(orderflow generic, lineflow generic, negotiationflow generic)


BG: consolidated enterprise, no a/c impact, no transaction
SOB: Financial reporting entity, impacts accounting side of the business
LE: Legal company for which fiscal/tax reports generated
OU: may be a company, division, sales office. Info secured area, money transactions
IO: Plant, warehouse, distribution centre, starting point of transaction
Sub-inv: physical material storage area, one sub-inv is must

Item: anything could be transactable, materials, onhand stock (status: active, in-active,
engineering, purchase only, OPM, phased-out, obsolete) 4/5

Status control attributes(8): Stockable, transactable, purchasable, invoice enabled, BOM
allowed, build in WIP, Customer ordered, Internal ordered

Item Defining Attribute(8): Inventory item, purchased, internal ordered, customer ordered,
serviceable, Engineering item, costing enabled, MRP planning method

Min-max (org & sub-inv level)
non-critical items, won't consider lead-time and forecasted demand
1.Master items: planning method, lead-time
2.Run: Min-max planning report

Re-order point: (org level), expensive items, critical items
1. Master items: planning method, lead-time
2. create fore-cast set 3. create fore-cast entry
4. safety stock update (conc: reload safety stock)
5. Query safety stock for the updated value
6. Run: Reorder point planning (conc: reorder point report)

Replenishment count:(sub-inv level), for non-traced sub-inv, low-price & employee motivation
1. create new sub-inv (qty non-tracked) 2. sub-inv repln information
3. Org item (min-max qty, source: sub-inv)
4. enter repln count (type, onhand, ord_qty, ord_max)
5. validate and process RC 6. Transact move-order

PAR Periodic automated replenishment count (locator level)
Steps are same as RC, enable PAR level planning in sub-inv, enter the level for each locator 5/5