Oracle Applications R 12

Order Management
by

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 Order Management

• A highly effective and well integrated suite of

e-business applications for the enterprise

• Highly extensible and customizable to meet business

requirements.

• Designed for easy user interface

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 Order Management Suite Contains

• Order entry

• Shipping
• Pricing
• Release Management

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 OM Process flow

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 Order Management – Integration

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GL Order Import, Process Orders API GL

Inventory
Oracle
Inventory Interface
Move
Orders,
Pick
Release, Invoice
Pick
Interface
Confirm
APIs

Process
Scheduling/
Orders
API Sourcing API

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 Order to Cash life cycle

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 Order Processing Basic Requirements

Customer

Items
Order Booking
&
Price
Processing
list
Transaction
Type

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 Key Features

Order Processing
 Order Cycle Standard
 Returns
 Drop ship
 Inter org transfer
 Back to back orders
Shipping
 Picking
 Shipping Execution
 Shipping Document

Pricing
 Pricing setup
 Modifiers
 Qualifiers
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 Key Features

Other Functions

• Scheduling
• Order Holds
• Credit Check
• Invoicing
Set Up
• Order Processing Set up
• Pricing Set up
• Shipping Set up

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 Basic Order Process Flows

Standard shippable Standard shippable

Invoice only (Distributor) (Manufacturer)
1 1 1
Customer requests order
2 2 2
Enter order
3 3 3
Book order
4 4
Schedule
5
Release order to Manufacturing
5 6
Ship product and update inventory
4 6 7
Invoice the customer

Complete Complete Complete

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 Order to Cash
Manage Sales Orders

Enter Sales Book and Allocate Pick

Satisfy Demand
Order Schedule inventory Confirmation

• Sales Orders can be • Booking
entered manually or • Validates customer available
imported from external credit limit
legacy systems • Legal binding between the
• Validates item, customer, customer and supplier
pricing • Scheduling
• Validates configuration • Assign fulfillment warehouse
• Specify tax, shipping • Assign a shipment schedule
constraints, invoicing date to meet requested date
constraints and sales • Reserve inventory in a MTS
credits environment (Optional)
• Provide Manufacturing
visibility and consume
forecast
• Produce Product – Make • Inventory allocation as per • Generate Pick slips
to Order predefined organizational • Pick material as per
• Provide services rules and policies, customer and
• Procure product preferred customers e.g. regulatory
• Procure to Order FIFO for perishable goods requirements
• Drop Shipment (Shipment with limited shelf life or • Resolve inventory
from supplier to end LIFO for products with discrepancies
customer) regular price increases in • Stage material for
raw materials shipping
• Warehouse Management
inventory allocation rules to
improve picking efficiency

Manage Collections

Customer
Confirm Financial
Generate Invoice Customer Follow Receipts and
Shipment Reconciliation
Up Cash Application

• Generate shipping • Generate customer • Customer Calls • Receive payments • Reconcile

documents for domestic invoice • Issuing Dunning letters from customers shipments with
and export compliance • Recognize revenue as • Customer disputes • Apply received invoicing
• Capture freight costs per industry specific payments against • Reconcile invoices
and surcharges norms and GAAP corresponding with customer
• Relieve Inventory • Send invoice to invoices payments
• Ship products and send customer
anBusiness
ASN to customer
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 Order Entry

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 Order Booking

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 Order Processing Cycle

• The basic Order Processing Steps :

ENTER BOOK

PICK
RELEASE
BACKORDER
RELEASE
SHIP
CONFIRM

RECEIVABLES INVENTORY

COMPLETE

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 Move Order- Picking and Shipping

Move order Approve Move order locates

created move order material sources Pick Ticket

In case of shortage
move order
can be repeated Transaction

Destination Transaction Source

location location
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 Ship Confirmation Business Flow

Order Ship
Management Confirmation

Invoice
Information

Inventory Invoice
Information Information

Inventory Receivables

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 Picking

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 Shipment

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 Shipment Confirmation

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 Return Material Process

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 Retro Billing Process

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 Retro Billing Process - Request

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 New Features in R12
– Multi-Organization Access Control (MOAC)
• Multi-Org Access Control allows you to view & manage set-up data across multiple
Operating Units without switching Application Responsibilities.

– Enhanced Inventory Reservations

– Customer acceptance of goods & Services

– Mass Scheduling, Scheduling ATO Items without BOM

– Customer Credit Check Hold Source Support across Operating Units

– Oracle Process Order Fulfillment is merged into Oracle Order Management

– Pricing – An item can be tracked in two units of measure and priced in either
unit.

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 ….New Features in R12

– improved allocation (picking) rules and added features to Move

Orders.

– Additionally, the ability to price by a secondary quantity is available to

all users who track their inventory in two quantities.

– Process users can leverage all of the functionality in Order

Management, such as enhanced scheduling and reservations, and
international drop shipments, as well as Warehouse Management
System functions.

– Material status and grade - The preferred grade from the sales order
line can be used to pick the correct inventory.

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 MOAC Process – View Transactions
(New in R12)

View transactions
across multiple
Operating Units

Query transactions
across multiple
Operating Units by
leaving the field blank

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 Picking Rules (New in R12)

Tracking Pricing for dual

UOM’s

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 Move Order (New in R12)

Tracking Quantity

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 Prices in 2 UOMs

Tracking Pricing for dual

UOM’s

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 Dual Unit of Measure (New in R12)

• Support for Dual

Units of Measure
during Order
Capture
• Customers can Both primary and
secondary UOM
order in their Unit during order entry
of Measure
• Automatic
conversion
between primary
and secondary
Unit of Measure

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 RMA Processing and Quality Inspection
(New in R12)
• Can receive in
primary or
secondary unit
of measure
• Lot traceability
support through
returns process
Lot level details
captured during
• Adhere to RMA process
safety and
regulatory
requirements

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 Customer Acceptance Setup and Process
(New in R12)
SETUP PROCESS
Acceptance attributes
can be defaulted or be
Create sales order specified for SO line
Set deferral reason Process Acceptance
in AR
Explicit
Pick and ship
material Pre-billing Type of
Acceptance
Enable Fulfillment
Pre or Post
Acceptance in OM Yes
Billing?
Acceptance Implicit Record Acceptance
Required? (OIP / Order Import)
Expiration
Period
No Post-billing elapsed?
Legend
Auto-invoice
creates
Automated process Process
invoice
Acceptance
Normal Flow (Conc.
(without Acceptance) Prog.)

Pre-billing Flow

Post-billing Flow

Revenue Recognition

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 Deferral Reason Setup in AR

Use Removal event as

Invoicing for ‘Pre-Billing
Acceptance’ and as
‘Customer Acceptance’ for
Post-Billing Acceptance

Attributes to be
specified for Implicit
Acceptance

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 Acceptance Information Fields in Sales Order

Customer Acceptance related

fields enabled through Folder
Options

User defined Folder to

enable acceptance
related attributes

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 New Features in Shipping

• User defined Ship Confirm Message Configuration

• Enhancements for Miscellaneous Shipments
• Shipping Purge
• Workflow Enabled Shipping Transactions
• Flexible Documents

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 Shipping Message Configuration

Check Error or Warning for

each Message

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 Shipping Message Confirmation
Ship Confirm

Ship Confirm displays

an Error (stops the user until the problem
is fixed/changed)
or a Warning (does not stop the user).

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 Oracle Applications R 12
Advanced Pricing
by

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 Basic Pricing

• Basic pricing included in Order

Management enables you to:

• Set up price lists.

• Create static formulas
• Discount by percentage or amount

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 Overview of Oracle Advanced Pricing

Oracle Advanced Pricing supports e-business applications by

providing a flexible pricing engine that executes pricing and
promotional calculations.

Oracle Advanced Pricing provides the flexibility to meet the

needs of complex pricing situations for a range of
demanding industry business requirements.

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 Advance Pricing Features

Oracle Advanced Pricing provides advanced pricing capabilities that enable

you to set up your pricing information and to model complex data
relationships to determine the correct price.

• With Oracle Advanced Pricing, you can perform the following functions:

• Create a list price for an item or item hierarchy.

• Set a list price based on volume breaks.
• Create flexible, multilevel, currency-based price lists
• Create automatic and manual discounts based on item category, customer
agreements, customer purchase order or order type
• Create fixed-amount, percentage or unit volume discounts
• Create rule-based pricing structures
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 Oracle Pricing
How it works

All

INPUT OUTPUT
Qualifiers = Eligibility? Select
Price Lists Final Price
Attributes = What?
Select
Modifiers
m
On I te
eC e
ust
om On
er
PRICING ENGINE

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 Qualifiers/ Modifiers

Who ?
Qualifier

History How ?
Price
Qualifier Modifier
Accumulation

What ?
Pricing
Attribute

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 Basic Vs Advanced
Pricing

Feature Basic Advanced

• Price List Only one More than one

price list

• Qualifier Cannot be defined Can be done

& attached to PL

• Modifier Discount, Surcharge, Coupons, Deals,

Freight/Special charges Promotions….

• Formula Static Dynamic

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 Price List

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 Price List-Qualifiers

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 Qualifier

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 Formula

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 R12 Advanced Pricing New
Features
• MOAC for Pricing Security
• Recurring Charges
• Continuous Price Breaks
• Advanced Pricing Support for Purchasing
Global Blanket Agreements
• Price Books
• Support TCA Party Hierarchy

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 Thank you

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