You are on page 1of 29

Order Management Training

1
---Confidential
Introduction
Three cycles in Oracle Applications
 Plan to make.
 Order to cash
 Procure to Pay

2
---Confidential
Basic Order Process

Customer Order
Invoice Order

Shipping Sales
Department

Inventory
3
---Confidential
Basic Order Process Flow

1
Customer requests order
2
Enter order
3
Book order
4
Schedule

Release order
5
Ship product and update inventory
6
Invoice the customer

Complete 4
---Confidential
Topics which we cover
 ORDER MANAGEMENT-----SETUP STEPS
 CREATING A SALES ORDER
 BACK ORDERED
 RMA
 DROP SHIPMENT
 INTERNAL SALES ORDER

5
---Confidential
ORDER MANAGEMENT-----SETUP STEPS

Step 1--Flexfields
Define key and descriptive Flexfields to capture
additional information about orders and transactions.
This step is required for Key Flexfields, and optional if
you plan on using the functionality surrounding
Descriptive Flexfields. Several defaulting values are
provided.

6
---Confidential
 Step 2---Multiple Organizations
Define multiple organizations in Oracle
Inventory. This step is optional.

7
---Confidential
Step 3---Inventory Organizations
 Define inventory organizations (warehouses),
parameters, subinventories, and picking rules in
Oracle Inventory.
 You must define at least one item validation
organization and at least one organization that acts
as an inventory source for orders fulfilled
internally. If you plan to drop ship some orders,
you must also define at least one logical
organization for receiving purposes. Your item
validation organization can be the same as your
inventory source or your logical receiving
organization, but you cannot use one organization
for all three purposes.
8
---Confidential
Step 4---Profile Options

 Define profile options to specify certain


implementation parameters, processing
options, and system options.
 This step is required.

9
---Confidential
 Step 5---Parameters
Set your Order Management Parameters to
validate items, enable customer relationships, and
operating unit defaults. This step is required.
 Step 6---Invoicing
Define invoicing information, including payment
terms, invoicing and accounting rules, Auto
accounting parameters, territories, and invoice
sources. This step is required if you plan on
transferring invoicing information to Oracle
Receivables. Several defaulting values are
provided.
 Step 7---Tax
Define tax features, such as codes, rates,
exceptions, and exemptions. This step is required.
10
---Confidential
 Step 8---QuickCodes
Define QuickCodes that provide custom values for
many lists of values throughout Order Management.
This step is required if you plan on creating user
defined QuickCodes for utilization within Order
Management. Defaulting values are provided.
 Step 9---Workflow
Define order and line processing flows to meet
different order and line type requirements.
This step is required.
 Step 10---Document Sequences (Order
Numbering)
Define Document Sequences for automatic or
manual numbering of orders.
This step is required.
11
---Confidential
 Step 11---Order Import Sources
Define sources for importing orders into
Order Management. This step is required if
you plan on importing orders or returns into
Order Management.
This is done in Purchasing.
 Step 12---Units of Measure
Define the units of measure in which you
supply items. This step is required. -----INV
 Step 13---Item Information
Define item information, including item
attribute controls, categories, and statuses.
This step is required. -----INV
12
---Confidential
 Step 14---Items
Define the items that you sell, as well as container
items. This step is required. -----INV
 Step 15---Pricing

Define price lists for each combination of item


and unit of measure that you sell. Optionally, you
can define pricing rules and parameters to add
flexibility. This step is required.
 Step 16---Customer Classes

Define customer profile classes.


This step is required if you plan on using the
functionality surrounding Customer Profiles.
Several defaulting values are provided. --AR
13
---Confidential
 Step 17---Customers
Define information on your customers. This step
is required. ---AR
 Step 18---Item Cross-References

Define item cross-references---INV


 Step 19---Order Management Transaction
Types (Order and Line Types)
Define Order Management transaction types to
classify orders and returns. For each order type,
you can assign a default price list, defaulting
rules, order lines, return lines, line types,
workflow assignments, payment terms, and
freight terms. This step is required.
14
---Confidential
 Step 20---Cost of Goods Sold (COGS)
Set up your Cost of Goods Sold Accounting
Flexfields combination (COGS Account) in
Oracle Inventory.
 Step 21---Processing Constraints

Define processing constraints to prevent users


from adding updating, deleting, splitting lines, and
cancelling order or return information beyond
certain points in your order cycles. Use the
constraints Order Management provides, which
prevent data integrity violations, or create your
own. This step is optional. Several default values
for processing constraints have been defined.

15
---Confidential
 Step 22---Defaulting Rules
Define defaulting rules to determine the source
and prioritization for defaulting order
information to reduce the amount of information
you must enter manually in the Sales Orders
window.
This step is optional.
 Step 23---Credit Checking
Define your credit checking rules.
This step is required if you plan on performing
any type of order credit checking.
 Step 24---Holds
Define automatic holds to apply to orders and
returns. This step is required if you plan on
performing automatic hold for orders or returns.

16
---Confidential
 Step 25---Attachments
Define standard documents to attach
automatically to orders and returns. This
step is optional.
 Step 26---Freight Charges and Carriers
Define freight charges and freight carriers to
specify on orders. This step is required if
you plan on charging customers for freight
or additional order charges.
 Step 27---Shipping
Define shipping parameters in Oracle
Shipping Execution. This step is required.

17
---Confidential
To create a sales order
 Set up of organization parameters.
 Create a price list with the items you created.
 Create an order type/transaction type, which
includes 2 line types one for the line orders,
second for line returns, and assign these both in
an order type.
 Define a sequence, as how your order documents
numbers should come.
 Then assign this sequence to the order type you
are using and order number comes from the order
type

18
---Confidential
To create a sales order contd..
 Define pick slip grouping rules and pick
release sequence rules.
 Define shipping documents.
 Then assign these 2 things (4. & 5.) in the
shipping parameters.
 From the above things you can create a
sales order.

19
---Confidential
BACK ORDERED

 If the items are coming back from the


staging area to the source subinventory.

20
---Confidential
RMA

 If the material is coming back from


customers after reaching them. Then we do
RMA to accept that back

21
---Confidential
DROP SHIPMENT

 Supplying material to your customers by


getting it from a external source (supplier)

22
---Confidential
Vendor Drop Ship or Combination
Standard with Drop Ship Order Flow
Enter order

Drop Ship: Yes or No?


Drop Ship Item Internally Sourced Item

Send to Purchasing Schedule

Supplier ship confirmation Ship and update inventory

Create invoice

Close sales order


23
---Confidential
Internal sales order

 Getting material from any of the other


organization by means of a internal
requisition.

24
---Confidential
Internal Order Flow
Requestor Demand
Manually Import or reschedule
create requisitions
Approve requisition
Create internal
sales order
Order entry

Schedule order

Pick Release
Inventory
Ship confirm
Expense Receive

Direct Intransit Inventory Expense

25
---Confidential
Where to Get More Information
 Other training sessions
 List books, articles, electronic sources
 Consulting services, other sources

26
---Confidential
END

27
---Confidential
Where to Get More Information
 Other training sessions
 List books, articles, electronic sources
 Consulting services, other sources

28
---Confidential
Where to Get More Information
 Other training sessions
 List books, articles, electronic sources
 Consulting services, other sources

29
---Confidential