OM FAQs

1. What is the Difference between bill of lading and packing list?

A bill of lading is a contract of shipping. It is usually non-negotiable and indicates the shipment origin and destination points, the name of
the carrier, description of the freight, dimensions and weight as well as the released value of the goods and any special instructions to the
carrier regarding the move. It is signed by both the shipper and carrier representative (usually the driver) and is the agreement under
which the goods are released to the carrier for transportation.
A packing slip is the form in which the goods are described. This includes a description, part numbers, quantities per box, weight per unit
etc. While it will also include some of the pertinent information shown on the bill of lading, it refers primarily to the inventory of the
shipment relating directly to the purchase order. In some cases copies of the packing slip are signed by the receiver and given to the
delivering carrier as proof of delivery, indicating whether or not the goods have been received damaged or short shipped.
2. What is WayBill Number?
A Waybill is a document issued by a carrier giving details and instructions relating to the shipment of a consignment of goods. Typically it
will show the names of the consignor and consignee, the point of origin of the consignment, its destination, and route. A waybill is similar
to that of a courier's receipt which contains the details of the consignor and the consignee, and also the point of origin and destination.

3. Release Sequence Rule: Release Sequence rules determines the order in which eligible picking lines are allocated to Inventory
during pick release.

If you select the Ascending button for Order, picking lines are released by ascending order number-- Order 1001 is released first, then Order
1002, Order 1003, and so on. If the Descending button is selected, the picking lines are released by descending Order number from highest to
lowest.(1003 first, then 1002 and 1001)
Note: You can define either the Outstanding Invoice Value attribute or the Order attribute for the Release Sequence Rule, but you cannot
select both for the same rule. No two attributes can be given the same priority.
You can edit existing release sequence rules, but you cannot change the name of an existing release sequence rule.
4.

The document set named Pick Slip Report can be used to print this report automatically during the pick release process. The Shipping
Parameter for Print Pick Slip determines when to initiate printing. If the parameter is set to Immediate, then the program looks at the
parameter for Number of Pick Slip Lines to determine the number lines to process before printing begins. The pick slip will then immediately
print after the system finds for pick release the number of pick slip lines specified by the Number of Pick Slip Lines parameter and include that
number of lines on the pick slip. The pick release process will continue, and then print the next pick slip when that number of lines is again
identified. For example, if the Print Pick Slip parameter is set to Immediate and the Number of Pick Slip Lines is set at 20, then when the pick
release process is initiated, a pick slip report will be generated immediately after the system finds 20 lines for release. This setup enables
warehouse personnel to begin picking the first 20 lines without having to wait until the system completes the full pick release.
If the Print Pick Slip parameter is set to At the End, then the pick slip report will be generated when the system completes the review of all
eligible lines for pick release. The Shipping Parameter for Number of Pick Slip Lines is ignored if the Pick Slip Report parameter is set to At the
End.
5. Picking Rules: Picking rules, which are created and maintained in Oracle Inventory, it suggest which material to use, based on
inventory controls such as revisions, lots, FIFO (first in first out) or sub inventory/locator picking numbers. They are user defined set
of rules to define the priorities order management must use when picking items from finished goods inventory to ship to a customer.
Picking rule is an Item Attribute. Create a variety of picking rules and associate them with the appropriate items. If there isnt a
Picking Rule associated with the item, the system will use the organizations default picking rule which is found on the Shipping
organizations Parameters.

6. 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 as Sub inventory, the user can reduce the number of trips to a particular sub
inventory by grouping all lines for that sub inventory on to one Pick Slip.

7. Move Order: Move orders are requests for the movement of material within a single organization. They allow planners and facility
managers to request the movement of material within a warehouse or facility for purposes like replenishment, material
storage relocation, and quality handling. You can generate move orders either manually or automatically depending on the source
type you use. Move orders are restricted to transactions within an organization. If you are transferring material between
organizations you must use the internal requisition process. The move orders created for material transfer during pick release are
referred to as Pick Wave Move Order.

8. Move Order Allocation: After a move order has been approved, you must allocate the move order lines. Move order allocation is
the step in which the on-hand of the inventory is allocated/reserved for a give move order. Allocating is the process that uses Oracle
Inventory picking rules to determine where to source the material to fulfil a request line. The allocating process fills in the move
order line details with the actual transactions to be performed and allocates the material to the move order. In case of no prior
reservations this step will block the units specified in the inventory for this move order, making it unavailable for fulfilling other
requests. After this step the available to reserve quantity decreases in the warehouse.

9. Move Order Transaction: After item allocation to the move order is done, next step is move order transaction. Move order
transaction is the step which completes the process of sub-inventory transfer i.e move the goods from source sub-inventory to
STAGE

10. What do the various options for the parameter "Appending Limit" mean in the Shipping Parameters Form, Delivery tab.

The meanings are as follows:
1. Do Not Append
Appending of Deliveries will not take place.

2. Start of Staging
Appending will take place only if all the delivery lines of an eligible delivery are at status "Ready to Release", "Backordered", or
"Released to Warehouse"
In other words, Appending is stopped as soon as one delivery detail line of the delivery is staged/pick confirmed

3. End of Staging
Appending to eligible deliveries will take place till all the delivery lines in the eligible delivery are "Staged/Pick Confirmed"
In other words, Appending is stopped when all delivery detail lines of the delivery are staged/pick confirmed







11. Back to back order line does not go to supply eligible but bypasses the create supply order activity and goes straight to awaiting
shipping.
There was existing on hand quantity for the ordered item. Therefore this gets reserved and the back to back flow is bypassed.
Back to back ordering is designed for situations where no on hand stock is stored. Issue out existing on hand stock. Then placing a
new order will follow the back to back order flow.
Back-to-Back Sales Order Cycle In Order Management (Doc ID 751325.1)
12. Why is the Unit cost taken from the List Price of an Item Validation Organization when using Drop Ship Orders unlike the Back-To-
Back Orders which take the Unit cost from the Items cost?
For drop ship orders, the material does not generally come through inventory since the supplier ships it directly to the customer. In
a Back-to-Back Order, material is brought through inventory before being shipped to the customer. This is the main reason for why
the unit price is taken from the list price in the item master for drop ship orders. Unit cost (Items costs) for Back-to-Back Orders
generally come into picture for costing purposes. Since dealing of material is done from inventory, it affects costing. When material
comes into inventory, some packaging, labour or overhead cost is incurred during shipping. When Drop Ship occurs, there is no such
overhead/labour cost involved and hence there is no margin cost.
This is not the case when a Back-to-Back order happens. If the material is coming into inventory, the overhead/inventory cost is
involved and COGS account is hit when the material is shipped out of the warehouse.
In case of the Drop Ship orders, Deferred COGS would be used; later COGS will be hit after revenue recognition.
13. What is a Phantom item & how is it used?

Phantom assembly items, also known as make-on-assembly, are parts that have a bill of materials, but are not usually produced
with a work order. Rather, they are produced as part of a parent assembly. The material requirements for a work order would not
include the phantom item, but would include all of its components.
Phantom items are typically used in multilevel 'Bill of Materials' (BOM), where a single row of a phantom item serves the purpose of
an entire sub-tree. These items do not exist in the inventory. They are designed to be used in situations where several BOMs would
have the same basic components. Instead of having to enter the same multiple rows into the BOM, 1 row with the phantom item
can be used.
A practical application of a phantom item would be, for example, a basic cake mix for a bakery. This basic recipe plus additional
items is used for a variety of different cakes.

Basic Cake Mix:
1 Kg Flour
Egg
1kg Sugar
1 kg Butter

Now the actual requirement (order) is to make Blueberry Muffins, so we will draw this phantom item into another BOM and so the
ingredients will be:
Basic Cake Mix
1 Kg Butter
1 Kg Blueberries
1 Kg Baking Powder

The phantom item/Bill of Material does not appear in the Production Order. Furthermore a Production Order cannot be created for
a phantom Item/Bill of Material as it is not a stock item.

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