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Invoice Receipt Reconciliation
Overview
In this practice you will learn how to create a user and assign responsibilities to the user
Login
1. Login to the database.
User Name: operations
Password: welcome
2. Select the System Administrator responsibility.
3. Create a User. (N) Security > User > Define
Enter the following information:
a. User: <your chosen login name>
b. Password: <any pwd of your choice; you need to type it twice>
c. Password Expiration: select None
d. Effective Dates: enter dates
4. (M) File > Save.
5. Assign the following responsibilities to your user using (T) Direct Responsibilities:
Responsibility Security Group
Order Management Super User, Vision Operations (USA) Standard
Inventory, Vision Operations (USA) Standard
Receivables Manager Standard
System Administrator Standard
Purchasing Super User, Vision Operations Standard
CRM Administrator, Vision Enterprises Standard
Oracle Pricing Manager, Global Standard
6. (I) Save.
7. Log out of the operations username and login again using your newly created account. You will be prompted to change
your password.
Note: You can use this account for subsequent logins.
8. Once you have logged in again, select the System Administrator responsibility again and navigate to (N) Security >
Responsibility > Define.
9. Query for the Order Management Super User Vision Operations USA responsibility (F11 and Ctrl-F11).
10. Please ensure that the appropriate menu (shown below) ADS_OM_SUPERMENU is assigned to the OM Super User
responsibility.
3. (B) OK
13. (N) > HRMS Manager > Work Structures > Organization > Hierarchy
17. Enter a Version Number and Start Date for the new hierarchy.
18. Using F11 and Ctrl-F11, query for your top organization in the Organization region > Name field. Please note that if
your organization classification is a Business Group it will not appear in this search result list.
19. In the Subordinates sub-region, enter the operating units and click the Down arrow key to enter a subordinate (Inventory
Org) for each operating unit.
28. Run the Security List Maintenance concurrent program. (M) View > Requests > Security List Maintenance with the
following parameters:
Generate Lists For: All Security Profiles or One Named Security Profile
31. When you have created the security profile, you can assign the value to the MO: Security Profile option at the
responsibility level. You can select the same security profile for multiple responsibilities.
32. Assign a default operating unit to the profile option MO: Default Operating Unit. (N) > Profile > System.
33. Run the Setup Validation Report to check if the setup steps have been performed successfully.
There is no functional or technical difference between the Item M aster organization and other organizations. However, for simplicity, Oracle recommends
that you limit the Item M aster to just an item definition organization.
Oracle also recommends that you do not define multiple item masters. This can make item definition and maintenance confusing. In addition, multiple item
masters are distinct entities, with no relationship to each other. You cannot associate items in one item mas ter organization with another item master
organization. You cannot copy items across item
master organizations.
1. Inventory Parameters
2. Costing Information
3. Other Account Parameters
4. Revision, Lot, Serial, LPN Parameters
5. ATP, Pick, Item–Sourcing Parameters
6. Defining Inter–Organization Information
7. Defining Warehouse Parameters
1. Enter an organization code for which you want to set up the organization parameter.
2. S elect an Item Master organization. Oracle Inventory only defines items in the Item M aster organization of the organization from which you
enter the Items window.
3. S elect a workday calendar. This is required when Oracle M aster Scheduling/M RP and Oracle Supply Chain Planning is installed.
4. Optionally, select a demand class. Demand classes segregate scheduled demand and production into groups, allowing you to track and
consume those groups independently. Oracle M aster Scheduling/M RP and Oracle Supply Chain Planning uses this demand class during forecast
consumption, and shipment and production relief.
5. In the Move Order Timeout Period field, enter the number of days a move order requisition can wait for approval.
The workflow approval process sends a notification to the item planner when a move order requisition requires approval.
After the first timeout period, if the recipient has not approved or rejected the order, a reminder notice is sent. After the second timeout period, the
order is automatically approved or rejected, depending on whether you select Approve automatically or Reject automatically in the M ove Order
Timeout Action field. If you want to bypass the move order approval process and automatically approve move order requisitions, enter 0 days in
the M ove Order Timeout Period field and select Approve automatically in the M ove Order Timeout Action field.
Approve automatically: After the second timeout period, move order requisitions are automatically approved. Select this option and set the M ove
Order Timeout Period to 0 if you want to bypass the move order approval process and automatically approve move order requisitions.
Reject automatically: After the second timeout period, move order requisitions are automatically rejected.
8 . S elect a Default On-hand Material S tatus tracking option. This step is optional.
Attention: You cannot update this field for existing organizations. To enable this field, you must submit the Activate Onhand Level M aterial Status
Tracking concurrent program.
1. Costing Organization
2. Costing Method
3. Transfer to GL Indicate whether all transactions are posted in detail to the general ledger.
Caution: Transferring detail transaction distributions to the general ledger increases general ledger posting times due to the number of records created.
4. Reverse Encumbrance Indicate whether to reverse encumbrance entry upon receipt in inventory .
You normally select this option if you use encumbrances with Oracle Purchasing.
For inter–organization transfers, a standard costing, receiving organization will not cost a receipt if the sending organization did not already cost the
transaction.
The default time is the first instant of the date. You can optionally choose another time.
The standard cost update process can be performed on the cost cutoff date. You can restart cost processing by changing the cutoff date to blank, or a future
date.
The supply chain cost rollup will complete successfully, regardless of whether this field is populated. If the Cost Rollup identifies an organization with a
default material overhead sub–element not set up, a corresponding warning message will be printed in the log file.
9. Valuation Accounts
You choose a default valuation account when you define organization parameters. Under standard costing, these accounts are defaulted when you define
subinventories and can be overridden. Under average costing, these accounts (except for Expense) are used for subinventory transactions and cannot be
updated. For a detailed discussion of cost
elements.
Material An asset account that tracks material cost. For average costing, this account holds your inventory
and intransit values. Once you perform transactions, you cannot change this account.
Material Overhead An asset account that tracks material overhead cost.
Resource An asset account that tracks resource cost.
Overhead An asset account that tracks resource and outside processing overheads.
Outside processing An asset account that tracks outside processing cost.
Expense The expense account used when tracking a non–asset item.
Lot Number
1. Select an option for lot number uniqueness.
Across items: Enforce unique lot numbers for items across all organizations.
None: Unique lot numbers are not required.
3. Indicate whether to add zeroes to right–justify the numeric portion of lot numbers (Zero Pad Suffix).
4. Optionally, select an alphanumeric lot number prefix to use for system–generated lot numbers when generation is at the organization level.
5. Optionally, define the maximum length for lot numbers. If you use Oracle Work in Process and you set the WIP parameter to default the lot number based
on inventory rules, then WIP validates the length of the lot number against t he length you define in this field.
S erial Number
1. Select an option for serial number uniqueness.
Within inventory items: Enforce unique serial numbers for inventory items.
Within organization: Enforce unique serial numbers within the current organization.
Across organizations: Enforce unique serial numbers throughout all organizations.
2. Select an option for serial number generation.
At organization level: Define the starting prefix and serial number information for items using the information you enter in the following fields of this
window.
At item level: Define the starting serial number prefix and the starting serial number when you define the item.
3. Optionally, select an alphanumeric serial number prefix to use for system–generated serial numbers when generation is at the organization level.
4. Optionally, enter a starting serial number to use for system–generated serial numbers.
If serial number generation is at the organization level you must enter a starting serial number.
5. Indicate whether the system will suggest serial numbers as part of the move order line allocating process. If you do not select this option, you must
manually enter the serial numbers in order to transact the move order.
ATP, Pick, Item–Sourcing Parameters
S elect a default ATP rule.
ATP rules define the options used to calculate the quantity of an item.
If you are using Oracle Order M anagement, the default is the ATP rule for the M aster organization.
Picking Defaults
S elect a default picking rule.
Picking rules define the priority that order management functions use to pick items.
Notes: This rule will not be employed in a WM S enabled organization. The WM S picking rules will be used.
Check the Pick Confirmation Required box if you want your pickers to manually pick confirm. If you do not check the box, pick confirmation will occur
automatically.
Encumbrance: An expense account used to recognize the reservation of funds when a purchase order is approved.
Inventory A/P Accrual : The liability account that represents all inventory purchase order receipts not matched in Accounts Payable, such as the uninvoiced
receipts account.
Purchase Price Variance : The variance account used to record differences between purchase order price and standard cost. This account is not used with
the average cost method.
Invoice Price Variance : The variance account used to record differences between purchase order price and invoice price. This account is used by Accounts
Payable to record invoice price variance.
Cost of Goods S old: The profit and loss (income statement) account that tracks the default cost of goods sold account.
S ales: The profit and loss (income statement) account that tracks the default revenue account.
Project Clearance Account: When performing miscellaneous issues to capital projects, the project clearance account is used to post the distributions.
Average Cost Variance: Under average costing with negative quantity balances, this account represents the inventory valuation error caused by issuing
your inventory before your receipts.
Cost Variance Will Appear when you Issue Value from inventory greater than current inventory value
Note: For standard costing, only the Purchase Price Variance, Inventory A/P Accrual, Invoice Price Variance, Expense, Sales and Cost of Goods Sold
accounts are required. The other accounts are used as defaults to speed your set up.
Note: For average costing, only the M aterial, Average Cost Variance, Inventory A/P Accrual, Invoice Price Variance, Expense, Sales and Cost of Goods Sold
accounts are required. The other accounts are used as defaults or are not required.
Organization Access
Receiving Options
Subinventories
Subinventories are unique physical or logical separations of material inventory, such as raw inventory, finished goods, or defective material. All material
within an organization resides in a subinventory. There are two types of subinventories within Warehouse M anagement, storage and receiving.
S torage subinventories are intermediate or final put away locations for material. M aterial that resides in a storage subinventory app ears in on hand quantity,
and is tracked by the system. The system can book orders against, and use manufacturing processes on material that resides in a storage subinventory. You
must define at least one storage subinventory for your implementation.
Receiving subinventories. Optionally, you can create receiving subinventories to track material in the receiving area. You use receiving
subinventories when you want to track the material as soon as it enters the warehouse before an operator puts it away. Receiving subinventories enable
managers to see where the material resides as soon as it enters the warehouse. M aterial located in a receiving subinventory does not appear in on hand
quantity, and the system cannot reserve the material.
An operator can also only specify a receiving subinventory if they are using a mobile device to receive the material.
Note: Operators cannot transfer material from a storage subinventory to a receiving subinventory.
All material within an organization is held in a subinventory therefore, you must define at least one subinventory.
Header
1. Enter a unique alphanumeric name.
2. Indicate the material status of this subinventory, which controls the enabled transactions for all material in this subinventory. The status is not overridden
by the status of any locator, lot or serial, within this subinventory. The statuses of those objects will be considered when determining transactions that are not
enabled. This field is
used if you have Oracle Warehouse M anagement installed.
3. Indicate the default cost group for this subinventory. If the cost group assignment rules fail to identify a cost group for newly received material, this cost
group will be assigned. This cost group will remain with the material, even through subinventory transfers, until you perform a cost group change transaction.
This feature is available if you have Oracle Warehouse M anagement installed, and you are working with a WM S enabled organization.
4. Select the subinventory type from the drop down list. The available choices are as follows:
S torage: Designates the subinventory as a Storage subinventory.
Receiving: Designates the subinventory as a receiving subinventory, and links it to a receiving location. This subinventory type is used only for receiving
material. M aterial in this type of subinventory cannot be on–hand, or reserved.
Null: No subinventory designation
Parameters
Following are the important parameters that we must define
1. Quantity tracked Indicate whether each transaction for this subinventory updates the quantity on hand for the subinventory (Quantity Tracked).
If you leave this option unchecked, on–hand balances are not maintained and you cannot check or update the Asset Inventory, Include in ATP, Reservable, or
Nettable options. You can update this value only if there is no on–hand quantity, no pending transaction, or no uncosted transaction for the subinventory.
2. Asset S ubinventory: Indicate whether to maintain the value of this subinventory on the balance sheet (Asset Subinventory). You can update this value
only if there is no on–hand quantity for the subinventory.
3. Include in ATP: Indicate whether to include items in this subinventory in ATP calculations.
5. Allow Reservation: Indicate whether to include this subinventory when you perform available–to–reserve calculations.
6 Nettable: Indicate whether the planning process uses the on–hand balance of these subinventory items as available inventory (Nettable).
7. LPN Controlled: Indicate if material may be packed into an LPN in the subinventory. If this is unchecked, all LPNs transacted into this subinventory will
be automatically unpacked, and LPNs cannot be packed into this subinventory. This feature is available if you have Oracle Warehouse M anagement
installed, and you are working with a WM S enabled organization
8. S elect a type of locator control.
You can select an option only if you selected locator control as Determined at subinventory level in the Locator Control field in the Organization Parameters
window. You can only update this option if there is no on–hand quantity for the subinventory.
None: Inventory transactions within this subinventory do not require locator information.
Prespecified: Inventory transactions within this subinventory require you to enter a valid predefined locator for each item.
Dynamic entry: Inventory transactions within this subinventory require you to enter a locator for each item. You may choose a valid predefined locator, or
define a locator dynamically at the time of transaction.
Item level: Inventory transactions use locator control information that you define at the item level.
9. Optionally, enter an inactive date for the subinventory.
10. Enter a location for the subinventory. If the Subinventory type is Receiving, this field is mandatory.
Lead times
Optionally, enter pre–processing, processing, and post–processing lead times for items in this subinventory.
These lead times are used when you use min–max planning at the subinventory level.
S ourcing
Inventory: Replenish items internally, from another organization.
Supplier: Replenish items externally, from a supplier you specify in Oracle Purchasing.
Subinventory: Replenish items internally, from another subinventory in the same inventory organization.Navigate to the Subinventories Summary folder
window. Choose New. The Subinventories window appears.
Login
Login to the database using the User Name and Password supplied by your instructor.
Choose Responsibility
Order Management Super User, Vision Operations (USA) Responsibility is selected.
Define a Territory
1. Name: XX-Territory.
Area: APAC
4. Active: Enable
5. Effective Dates:
6. Save.
Setting OM System Parameters
Parameters in the Oracle Order Management Parameters window can be functionally grouped, and you can define controls as easily as
defining profile options.
OM System Parameters allows you to define new parameters and setting up the values for the parameters using different sources like SQL
and constant values.
This is step five of the Order Management Setup Steps, page 2-3.
Defining Parameters
Create and define parameters using the following attributes:
• Parameter Code: Unique code for the new parameter
• Name: Name of the parameter
• Description: Description of the parameter
• Category: Category the parameter belongs to. The category is controlled using the lookup type "OM_PARAMETER_CATEGORY." To
create a new category, add the lookup code in the lookup type "OM_PARAMETER_CATEGORY" and then enter that lookup type in your
parameter definition window.
• Value Set: Value Set associated as the source of values. The possible value sets can have validation types of NONE or TABLE. For seeded
parameters please make sure that you use a value set that begins with "ONT."
• Open Orders Check: Provides a control to allow or restrict changes to the parameter value once it is set for a given operating unit.
• Enabled: Controls the availability of the parameter. For seeded parameters this field is active for internal users.
• Seeded: Indicates whether the parameter is seeded or user-defined. This is only active for internal users.
To define Order Management system parameters:
1. Navigate to the Define OM System Parameters window. Order Management >
Setup > System Parameters > Define
Warning: You cannot have any open orders when performing updates to Order Management Parameters.
If open orders are found, a warning message displays. Select the OK button to ignore the Warning or select the Cancel button to not commit
changes.
2. Enter a unique code in the Parameter Code field.
3. Enter a name for the parameter in the Name field.
4. Enter a description of the parameter in the Description field.
5. Select the category from the Category field that the parameter belongs to.
This is controlled with a lookup. To create a new category, add the lookup code in the lookup type "OM_PARAMETER_CATEGORY" and
then enter that lookup type in the parameter definition window.
6. In the Value Set field, enter a value set associated as the source of values.
The possible value sets can have validation types of NONE or TABLE. For seeded parameters, use a value set that begins with "ONT."
7. Select a value from the Open Orders Check field. This provides a control to allow or restrict changes to the parameter value once it is set
for a given operating unit.
Available options are Allow, Give error, or Give warning.
8. When the Enabled box is selected the parameter is available to use. For seeded parameters this field is active only for internal users.
9. The Seeded check box indicates if the parameter is a seeded parameter or a user defined parameter. This is active only for internal users.
10. Save your changes and click OK. To cancel without saving any changes, click
Cancel.
Setting Parameter Values
You can set up parameter values at the operating unit level by specifying following
attributes:
• Operating Unit: Select the operating unit from the available list of values for which parameter values are to be set.
• Category: Select the category. On selection all the parameters for the selected category display.
• Show All: Check this to see all the parameters of all the categories.
• Parameter: Displays the name of the parameter for the selected category.
• Value: Parameter value of the parameter. This field shows a list of values based on value set attached with the parameter definition.
• Description: Displays description of the parameter currently selected.
Note: If Multi-Org Access Control is enabled, you can manage System Parameter values across all Operating Units accessible to you via your
MO: Security Profile.
To set up Order Management system parameter values:
1. Navigate to the Define OM System Parameters window. Order Management >
Setup > System Parameters > Values
If You Have Oracle Support Account You Can See That In URL:
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The settings in System Options that impact AutoInvoice are in the Trans and Customers tab.
The following screenshot shows recommended settings for fields in the 'AutoInvoice' Section.
Also highlighted is the Grouping rule we defined earlier.
Log file message level = 10 provides the most detailed debug messages, and is useful when you are debugging or
troubleshooting.
Responsibility: Receivables Manager
Navigation: Setup > System > System Options
To see how to Manage Receivable System Options, please refer to Note 1068052.1, How To Manage Receivables
System Options For AutoInvoice.
Additional information on the Tuning Segments, refer to the Oracle Receivables User's Guide, page 2-210.
14. Manage Receivables Accounting Periods
Open or close periods in your accounting calendar to control the recording of accounting information for these
periods. Since the objective of AutoInvoice is to create new transactions, the goal is to have these transactions impact
open GL periods.
Ensure that the GL_DATE value you provide in the next task is within an open period.
Responsibility: Receivables Manager
Navigation: Control > Accounting > Open/Close periods
To see how to Manage Receivable Accounting Periods, please refer to Note 1069057.1, How To Manage Receivables
Accounting Periods.
2. Manage Receivables Descriptive Flexfields
Oracle Receivables uses the transaction flexfields to uniquely identify each transaction line that is imported though
AutoInvoice.
AutoInvoice is capable of using information from four types of transaction flexfields:
More details on each of these types is available in Note 1068344.1, Setting Up Receivables Descriptive Flexfields.
For this case study, you need to setup a Line Transaction Flexfield as shown below.
Click on the segments button to create the following rows. The values in the field Column are not shown completely,
they are INTERFACE_LINE_ATTRIBUTE1 and INTERFACE_LINE_ATTRIBUTE2 respectively.
Name Account
Receivable Account 01-000-1210-0000-000
Revenue Account 01-000-4504-0000-000
Unbilled Receivable Account 01-000-1210-0000-000
Clearing Account 01-000-1222-0000-000
Tax Account 01-000-2510-0000-000
Freight Account 01-000-7220-0000-000
Unearned Revenue Acct. 01-000-1210-0000-000
Note: If you also want to run a test case to import a Credit memo, create a Credit Memo transaction type as shown
below, otherwise you don't need to create a Credit Memo transaction type.
To see more details on how to create new transaction types, please refer to Note 1067797.1, Setting Up Transaction
Types In Receivables.
Please note that if you want to use the AutoAccounting functionality (next task), and some of the segments of the
Account are sourced from the transaction type, then you must define GL accounts in the Accounts tab.
5. Manage AutoAccounting Rules
AutoAccounting enables you to create default accounts for revenue, receivable, freight, tax, unearned revenue,
unbilled receivable, late charges, bills receivables accounts, and AutoInvoice clearing (suspense) accounts.
In the following screen, the source for the third segment is 'Transaction Types'. When the default accounting is
generated for the Receivable account, the accounting flexfield will pull the third segment from the Receivables
account defined for the transaction type. If we cross-reference this to the screenshot from the previous task, the value
for the third segment is 1210, coming from 01-000-1210-0000-000 defined for Receivables account.
Responsibility: Receivables Manager
Navigation: Setup > Transactions > AutoAccounting
During AutoInvoice, you are interfacing data with the intention of creating complete transactions automatically.
Hence, you are advised to complete the setup for AutoAccounting so that AutoInvoice can determine the GL accounts
to use for your interfaced transactions, and process them completely without errors and without the need for manual
intervention.
To see how to manage and setup AutoAccounting, please refer to Note 1069052.1, Setting Up AutoAccounting Rules
In Receivables.
6. Manage AutoInvoice Line Ordering Rules
If you want the data in your interface table to be created in a particular sort order, define Line Ordering Rules.
The following screenshot shows a Line Ordering Rule, that references the same fields we used in the Line transaction
flexfield defined in Task 2 above.
Responsibility: Receivables Manager
Navigation: Setup > Transactions > AutoInvoice > Line Ordering Rules
To see how to manage and setup AutoInvoice Line Ordering Rules, please refer to Note 1067965.1, How to Manage
Line Ordering When Using Autoinvoice To Import.
7. Manage AutoInvoice Grouping Rules
Grouping rules specify attributes that must be identical for lines to be created as one transaction. Grouping rules
always include the mandatory attributes, and to this is added optional attributes that you define in your grouping rule.
The following screenshot shows a Grouping Rule that uses the Line Ordering Rule defined in Task 6 above.
Following screenshots show the sub-tab for the Transaction Sources form:
The AutoInvoice Options tab highlights the Grouping rule created earlier. The setup indicates this batch will group
data as specified in this grouping rule.
The following screenshots show the rest of the sub-tabs of this form, including Customer, Accounting, Salescredit and
other information. You need to define whether the data you will interface provides the Value or the ID so that
AutoInvoice can validate the data.
Customer Information tab:
To see how to manage and setup Transaction Sources, please refer to Note 1068008.1, Creating Transaction Sources
Used For AutoInvoice.
10. Manage Receipt Classes and Methods
To default a payment method to the transactions you interface via AutoInvoice, you need to define a Receipt Class
and Method for your transaction to use.
To see how to manage and setup Receipt Classes and Methods, please refer to Note 1071284.1, Setting Up Receipt
Class And Method For AutoInvoice.
11. Manage Receivables Customer Profile Classes
Oracle Receivables provides a profile class DEFAULT.
If necessary, you can define different customer profile classes to categorize your customers.
You can associate Customer Profile classes to customer records you create later.
By using a profile class you default certain attributes/fields into the customer records to make customer maintenance
more efficient.
The following screenshot defines a new customer profile class, to which we associate the Payment Term from Task
8 and the grouping rule from Task 7.
Responsibility: Receivables Manager
Navigation: Customers > Profile Classes
To see how to manage and setup Customer Profile Classes, please refer to Note 1071218.1, How To Define Customer
Profile Classes For AutoInvoice.
Remit-To Address Setup
1. Setting Up a Remit-To Address
Define remit-to addresses to let your customers know where to send payment for their invoices.
Receivables uses the addresses that you define in the Remit To Addresses window to provide default remit-to
information when you enter transactions.
Note: Receivables does not provide default remit-to information when you enter credit memos.
Receivables also uses the alternate name to sort customer names in certain reports if the profile option AR: Sort Customer
Reports by Alternate Fields is Yes.
The 'Alternate Address Name' is not rendered by default in Release 12. Users can use Forms Personalization to personalize the
address block by setting the Render flag to True for Alternate Address Name field. See Bug BUG:8571973
e. Enter a remit-to Address
Note: The release 12 Receivables Implementation Guide incorrectly refers to an obsolete Postal Code field on the Receivables
System Options. This setup is no longer used in Release 12. Internal Documentation Bug 9715200 will correct this in a future
version of the manual.
Verify that your Remit-To address is associated with the proper Operating Unit
Optionally Enter a State and/or range of Postal Codes for each country. You can define multiple assignments for a remit-to
address that has the same country or state, but different postal code ranges.
In the example below we first created a range that covers the western United States.
Next we created a range for the same Remit-To address that covers the entire country of Canada.
In this scenario one address could be used for all remittance in both areas.
1st Range:
2nd Range:
After adding both ranges the Remit-To will show as follows:
Receivables is able to provide a default remit-to address when you enter transactions
AutoInvoice will not reject invoices because it is not able to determine a remit-to address
You can only have one default remit-to address for each country or Country + State combination.
In the example from step 1g, the address is the Default Remit-To address for Canada.
If we wished to also make this the default Remit-To address for the United States we could create a third combination
and fill in only the country of United States.
Note: It is a best practice to set up a default remit-to address even if you do not anticipate requiring this value. If for example
you have a default remit-to for the United States, you can also define alternate remit-to address to be used with different zip-code
ranges which take priority over the default due to their more granular definitions.
3. Troubleshooting
Staging Subinventory
Create at least one staging subinventory for each organization. Move orders record the movement of pick released material to staging
subinventories. Staging subinventories should be Reservable .
Defining Shipping Document Sets
You can group related shipping documents and other reports in a set that can be printed at pick release or ship confirm. You can include a
variety of shipping documents in a set such as a Bill of Lading and Packing Slip Report and determine the print sequence.
Shipping Execution provides three pre-defined (seeded) document sets:
• All Pick Release documents: You can set the default Pick Release Document Set in the Pick Release tab of the Shipping Parameters window
• Ship Confirm documents: You can set the default in the Document Set field of the ship confirm window
• Pack Slip only (at ship confirm): You can set the default in the Document Set field of the ship confirm window
Note: You can create additional document sets based on your business needs.
To define document sets:
1. Navigate to the Shipping Document Sets window.
Shipping Document Sets Window
Within the Order tab, select one or more of the following criteria for your query.
Select only the criteria that you want for the pick release:
3. Select the Orders and Order Types that you want included in the pick release:
• Unreleased: The rule is applied to unreleased lines.
• All: The rule applies to all lines not pick released.
• Backordered: The rule applies only to backordered lines.
4. Enter the Order Number.
5. Select the Ship Set.
6. Optionally, select the Prior Reservations Only check box if you only want to pick release already reserved quantity for lines.
This is allowed only for the allocation method of Inventory Only.
7. Select the Destination Type:
• Region
• Zone
• Ship-To Location
8. Select the Customer and the Ship-To location for the customer.
9. Within the Item region select a Category Set, Category, and Item Number
10. Select the range of Scheduled Ship Dates and/or Requested Dates.
You can indicate whether you want the system to look at the scheduled ship date or the requested date.
You can then enter the number of days in the past or future, as well as the time, relative to current system date that you want included in
the release criteria.
This means that it is possible to set up a desired release window in terms of number of days rather than only static dates.
If your organization has a calendar assigned, then the release rule will honor non-working days (for example, Saturday, Sunday) to select
delivery lines for pick release.
If the rule shown were applied to Organization V1 and that Organization has Saturday and Sunday as non-working days on their
organization calendar, then the following would occur:
If pick release is run on Thursday, the delivery lines for Thursday, Friday, Monday, and Tuesday (system date + 3 working days) are
selected for pick release.
A negative value may be used in the Days field to include past dates which enables backordered lines to be considered for pick release.
Alternatively, you can create a pick release rule using static dates by selecting the options Start On and End On in the Scheduled Ship
Dates region and the Requested Dates region.
Release Rules Window - Shipping Tab
11. Select the Ship Method to pick release by a certain ship method.
12. Select the Shipment Priority, and Ship From location.
13. Enable the Include Assigned Lines box if you want to include assigned lines in the pick release.
14. Select a Document Set to be printed during pick release.
15. Select a Release Sequence Rule if required.
16. From the list of values, select either Yes or No to Autocreate Deliveries.
17. If you selected Yes to Autocreate Deliveries, then in the Autocreate Delivery Criteria field select either Across Orders or Within an Order.
18. Select either Yes or No in the Auto Pick Confirm field. Auto pick confirm is not allowed for the allocation method of Cross Dock.
19. From the Autopack Deliveries list of values, select No if you do not want to utilize autopacking, select Yes to enable autopacking, or
select Auto Pack Master if you want to utilize autopacking the item into its primary container and additionally automatically packing the
primary container into a defined master container.
You must setup container-item relationships to support the functionality for auto pack or auto pack master.
See: Oracle Inventory User's Guide.
20. Select a Ship Confirm Rule, if you want to utilize auto ship confirming.
21. Select Yes or No to Append Deliveries (consolidate delivery lines.)
Note: The appending limit must be defined as a value other than Do Not Append in the Shipping Parameters window before you can
append deliveries within a release rule.
Additional prerequisites for setting Append Deliveries flag include:
• Oracle Transportation Planning is not installed
• Organization must be specified
• Autocreate Delivery Criteria must be Across Orders
• Autocreate Delivery must be Yes
• Auto Pick Confirm must be No
Release Rules Window - Inventory Tab
22. Select the Warehouse (organization code) and default Pick Slip Grouping Rule for grouping the pick slips.
23. Optionally, enter a specific Subinventory for your rule.
This value determines which lines are considered for picking based on the subinventory name assigned to the sales order line.
24. If Oracle Project Manufacturing is installed, specify a Project and Task for your rule.
25. If Oracle Warehouse Management is installed, then you can select an Allocation Method to be used:
• Inventory Only: (Default) If you select this allocation method, then pick release allocates inventory materials only.
• Cross Dock Only: If you select this allocation method, then pick release allocates cross docking materials only.
• Prioritize Inventory: If you select this allocation method, then pick release checks for inventory availability before all other sources,
then allocates material from other sources if needed.
• Prioritize Cross Dock: If you select this allocation method, then pick release checks for material available for cross docking from all
other sources other than Inventory, then allocates materials from Inventory if needed.
The Allocation Method field cannot be updated unless Oracle Warehouse Management is installed.
See: Oracle Warehouse Management User's Guide and Oracle Warehouse Management Implementation Guide for more information.
26. If Oracle Warehouse Management is installed and if you selected Cross Dock Only or Prioritize Cross Dock in the Allocation Method,
then select a Cross Dock Criteria.
Enables a rule to be named, which limits the cross docking criteria. This field is disabled if the organization is not WMS Enabled, or the
Allocation Method is Inventory Only.
See: Oracle Warehouse Management User's Guide and Oracle Warehouse Management Implementation Guide for more information.
27. Select Auto Allocate if you want to allocate the order lines automatically at pick release.
If Auto Allocate is selected, order lines are automatically allocated and reserved.
If not selected, you must allocate the lines and create reservations using the Inventory Transact Move Orders window.
28. Select either Yes or No to Enable Plan Tasks if Oracle Warehouse Management is installed and you choose to utilize the Plan Tasks
feature.
29. Enter a Task Priority.
30. In the Pick From region, select the Subinventory and Locator of the default picking location.
Pick From Subinventory determines where the line items are picked/allocated from.
31. In the Default Stage region, select the Subinventory and Locator of the default staging area.
32. Save your work.
Shipping Parameters
You define the default values for basic shipping information such as units of measurement, pick release rules, weight and volume
calculations, and delivery grouping rules.
Shipping parameters are organization specific.
The parameters are arranged into the following tabbed regions in the Shipping Parameters window:
• General: You can define the shipping weight and volume unit of measure classes, criteria for calculating percent fill basis like weight,
volume, or quantity, and shipping events at which export compliance screening will be performed.
(Screening is only applicable if Oracle Shipping Execution is integrated with a t hird party ITM partner application).
• Pick Release: You can define Release Sequence rules and Pick Slip Grouping rules, limiting the number of lines in the pick slip, printing
behavior, document set to be printed at pick release, default staging subinventory, locator, and decision points to autocreate delivery, auto
allocation, enforcing ship sets and ship models, and task planning at the time of pick release.
• Shipping Transaction: You can define document sets to be printed at the time of ship confirm, ship confirm rule, auto-pack options, goods
dispatched (COGS) account and whether to enforce packing in containers.
• Delivery: You can define the attributes forming the basis of delivery grouping for the organization.
You can also specify if delivery grouping is limited to lines within the same sales order or across orders. For consolidation of deliveries, you
specify the event at which appending will stop for the appending of delivery lines to the delivery stops.
• Transportation: If Oracle Transportation Execution is installed, you specify whether or not to Apply Routing Rules automatically, define
Freight Payment and Audit related parameters, and define Freight Rating parameters.
3. Select the Default Ship Confirm Document Set that prints as part of the ship confirm process.
The list of values displays the valid delivery document sets. See: Defining Shipping Document Sets .
4. Select a Ship Confirm Rule that your organization will use as a default for auto ship confirming.
Note: If you want to define a default ship confirm rule, then you must select Ship All as your option when you define your ship confirm rules
in the Ship Confirm window.
5. Select your Autopack Options. From the list of values, select either No, Yes, or Autopack Master.
• Select Within An Order to autocreate deliveries whose lines all belong to the same sales order and match on the Delivery Grouping
Attributes.
• Select Across Orders to autocreate deliveries across orders.
All selected delivery lines that match on the Delivery Grouping Attributes are eligible to appear on one delivery.
5. Select an Appending Limit.
The appending limit enables you to indicate the point at which you want to stop the system from adding lines to a delivery (the point that ends
the ability to merge deliveries).
You must set the appending limit to a value other than Do Not Append in order to use the Append Deliveries option within Release Rules and
the Process Deliveries SRS. The Appending Limits include:
• Do Not Append
• Start of Staging
• End of Staging
• Start of Packing (Oracle WMS enabled organizations only)
• Start of Shipping (Oracle WMS enabled organizations only)
6. Save your work.
Ship Confirm Rule
(N) Shipping > Setup > Ship Confirm Rules
You use the Ship Confirm Rules window to define the Ship Confirm Rules based on your business needs.
Within the Ship Confirm Rules window, there are several options, which are covered next.
• Warehouse: Either the warehouse on the order line or, if the warehouse on the order line was blank, the best warehouse as selected by the
sourcing rules.
• Request Date Qty: The quantity that is available on the requested date
• Available: The order quantity, if ATP was successful. The available quan tity, which will be less than the order quantity, if ATP was not
successful.
• On-hand Qty: The quantity that is currently in the warehouse.
• Qty Reservable: The on-hand quantity minus the quantity that is already reserved to other sources of demand.
• Request Date: The date on the order line.
• Available date: The date that the ordered quantity will be available.
It could be the request date if the order quantity is available on the request date, or it might be a future date when the or der quantity will be
available
• Error Message: Any error that occurred in calculating ATP.
For example, if the Check ATP flag for the item is not selected then this field will display ATP not applicable.
• Substitute Item: If the requested item is not available and the requested quantity for a defined substitute is available, the substitute item will
be displayed. An additional tab, showing the availability of the substitute item, is also displayed. displayed for single ite ms.
A multi-line window displays availability information for sets and models.
Clicking the Global Availability button located at the bottom of the Availability window opens the ATP window that has the list of
warehouses where the item is enabled.
You can select the warehouses for which you want to see th e availability, and the system will return the availability in all the selected
warehouses.
The ATP Details window can also be opened from the Availability window by pressing the ATP Details Button. The ATP Details window
displays how the results were derived.
ATP is calculated automatically during scheduling, and may be calculated manually by clicking Availability on the Line Items tab of the
Sales Order window.
There are several steps required for ATP calculations.
If you are using ASCP, supply/demand is set up at the plan level. See the Oracle ASCP Implementation Manual.
Global Order Promising will only use the infinite time fence specified on the ATP rule.
If you are not using ASCP, ATP rules must be defined to determine the sources of supply and demand which are included in the calculation.
The ATP rules must be associated with items and/or inventory organizations. Also, the data collection program must be run.
There is a requirement for ATP calculations to be very fast; some customer service representatives will need to give this information to
customers on the phone.
However, considering all the possible sources of supply and demand for an ATP calculation can be very complex. Therefore, a c oncurrent
process known as data collection must be run to summarize the supply and demand picture.
This program is part of the Oracle Advanced Planning and Scheduling application.
The ATP calculation is then performed on the summary tables.
For details about setting up ATP rules and running the data collection program, see the setup section of this document.
Guided Demonstration - Creating an ATP Rule
Responsibility: Inventory, Vision Operations USA
1. Navigate to the ATP Rules window.
(B) Search
(B) Start Import
AutoInvoice
Receivables Cash Management
3. (B) Save.
Creating Price List Lines
4. Enter the first price list line using the following data:
In the Product region:
Product Context = Item
Product Attribute = Item Number
Product Value = XX-Palm Pilot
Product Description = Defaults
UOM = EA (Each)
Primary UOM = Deselected
Line Type = Price List Line
Application Method = Unit Price
Value = $700
Start Date = Current date
Precedence = Defaults
5. Add the following items, one item at a time, to the price list.
Product Context Product Attribute Product Value UOM Primary UOM Value
Item Item Number XX-Pager Ea. Deselected $700
Item Item Number XX- Phone Ea. Deselected $500
Item Item Number XX-Phone Card Ea. Deselected $100
Item Item Number AS54888 Ea. Deselected $1599
Item Item Number AS92888 Ea. Deselected $2300
6. (I) Save.
Practice - Copying a Price List
Overview
You can quickly create a new price list by copying an existing price list. Only active price list lines (those with an effective end
date later than the current date) can be copied. In this practice you will copy your existing price list named XX-Price List 1.
(N) Oracle Management Super User > Pricing > Price Lists > Copy Price List
2. Enter the following Copy From information:
Price List = XX-Price List 1
Retain Effective Dates = Selected
3. Enter the following information in the Copy To region:
Price List = SH-Price List 2
Description = Adjusted by 10%
Global check box = Selected
3. (B) Submit.
4. Verify that the request completed normally.
3. (I) Save.
(N) Pricing > Price Lists > Add Items to Price List
5. Enter the following data:
Price List = SH-Price List 4
Item Category Set = Inv.Items
Item Category = ELECTRONIC.ACCESSORY
Item Status = Active
Set List Price Equal to Cost From check box = Selected
Inventory Organization = SH1
6. (B) Submit.
7. Record the Request ID number: __________.
8. Review the request status to ensure the concurrent request completed successfully.
Overview
In this practice, you will learn how to set up a transaction type with associated line type and assign the workflow process.
Create a line transaction type for the order lines
Create an order transaction type for the order header
Assign line flows
Create a document sequence
Assign the document sequence to the order type
3. (I) Save.
4. Create a new transaction type by entering the following information:
Operating Unit = Vision Operations
Transaction Type = SH-StandardReturn
Description = Standard Return Line
Sales Document Type = Sales Order
Order Category = Return
Transaction Type Code = Line
Effective Dates – From = Today’s date
Creating an Order Transaction Type for the Order Header
4. (I) New. Create the order header transaction type.
Operating Unit = Vision Operations
Transaction Type = SH-Mixed
Description = Mixed Order Transaction Type
Sales Document Type = Sales Order
In the Sales Document Type field, select Sales Agreement or Sales Order from the list of values (for Quotes,
Returns and Releases, choose Sales Order).
Order Category = Mixed
Transaction Type Code = ORDER
Fulfillment Flow = Order Flow - Generic
. Note: Selecting a fulfillment flow assigns the workflow to the order header when the sales order is created. This
enables you to save the sales order.
Effective Dates – From = Today’s date
5. (T) Main.
Default Return Line Type = SH-StandardReturn
Default Order Line Type = SH-StandardLine
6. (T) Shipping.
Shipping Method = DHL
Freight Terms = Prepaid
7. (T) Finance.
Accounting Rule = Immediate
Invoice Source = ORDER ENTRY
Receivable Transaction Type = Inv-Hdwre-East
COGS Account = 01-740-7610-0000-000
Currency = USD
8. (B) Assign Line Flows. Enter the following information:
Order Type = SH-StandardOrder
Line Type = SH-StandardLine , SH-StandardReturn
Process Name = Line Flow - Generic
Start Date = Today’s date
Order Type = SH-StandardOrder
Line Type = SH-StandardReturn
Process Name = Line Flow - Return with Receipt Only, No Credit
Start Date = Today’s date
Inclusive Taxes
When you create your tax codes, you can specify that the taxes are inclusive taxes (the tax amounts are already included in the price of the
item).
When the Tax Engine is called to calculate taxes, it will return inclusive taxes as well as exclusive taxes.
Any inclusive taxes returned are not added to the extended amount of the order line or disp layed within the Tax column of an order line.
Order Management displays the estimated tax amount based on the tax date on the order line. However, inclusive taxes are disp layed when
you View Tax Details from the Action button menu within the Sales Orders Lines window.
You can perform a credit check including or excluding the estimated tax amount.
Practice - Viewing Tax Setups
Overview
In this practice you will learn how view tax setups in Oracle Order Management
Tasks
1. Navigate to the Transaction Types window in Order Management.
2. Find the tax related fields and determine the tax events.
(N) Order Management > Setup > Transaction Types > Define
7. (T) Finance
8. Navigate to the Receivables Transaction Type field and use the list of values to view the applicable options.
9. Navigate to the Tax Event field and use the list of values to view the applicable options.
Define Document Sequences for Order Numbering
Order Management uses AOL Document Sequence functionality for order numbering.
This is step eleven of the Order Management Setup You can define document sequences that automatically generate numbers for y our sales
documents as you enter them. You can define a single document sequence to assign unique consecutive numbers to all your s ales documents,
or you can define multiple document sequences that are assigned to different order types. In the latter case, an order or ret urn is uniquely
identified by its type and its number, since sales documents of different types may share numbers.
Note. Sales document numbers cannot contain alphabetic characters.
Gapless Order Number Source
Many countries have legal and audit requirements for order numbers to be contiguous.
You can set up a document sequence as gapless through the Define Documents Sequences window.
You can set up a gapless sequence for quotes, sales orders and Sales Agreements.
In addition, Order Management prevents deletion of orders that have been numbered using the gapless numbering sequence.
The application uses locks to ensure gapless numbering.
If you are using gapless sequences, please save your changes frequently to minimize lock contention issues.
Note: Transactions may be gapless, however if all quotes do not become orders, the order numbers will not appear gapless.
Manual Order Numbers
Order Management enables you to enter the order numbers for certain types of orders.
You can define a document sequence as manual and assign it to a desired order type.
This order type can be used on orders that you want to manually enter order numbers.
When an order number is specified for such an order, Order Management validates that it is unique for a given order type.
Prerequisites
• Set the profile option Sequential Numbering to Partially Used at the Order Management Application level.
Tasks
3. Define a new customer named XX-Big City with two sites:
Deliver to address: 487 Beverly, San Mateo County, Palo Alto, California, 94301
Create a Customer
SELECT PROFILE_CLASS_ID,CURRENCY_CODE,min_fc_balance_percent,min_fc_balance_overdue_type,aa.*
FROM hz_cust_prof_class_amts aa
WHERE 1=1
and PROFILE_CLASS_ID=0
and CURRENCY_CODE='EGP'
and min_fc_balance_percent IS NOT NULL
AND min_fc_balance_overdue_type IS NULL;
11. Organization Name: SH-Big City. Leave Alias, D-U-N-S Number, URL, and Context Value.
14. Account Type: External. Leave all other fields, in the Account Information region, blank.
15. Country: United States.
20. Postal Code: 60610. Leave all other fields, in the Account Site Address region, blank.
21. In the Business Purpose region, set Purpose to Bill To and check the Primary check box.
5. Select Assigned check box for the Organization SH 1 and click Done.
Select Assigned to assign the ship method to the organization(s) that use it.
You can assign the ship method to more than one organization.
Note: If you want to assign the ship method to all of your organizations, click Assign All to have all organizations' Assigned field selected. If
you want to begin again with your assignments, click Unassign All to have all organizations' Assigned field cleared.
6. (M) File > Save.
Defining Freight Costs
You can define allowable freight costs and suggested amounts for shipments.
These amounts are applied at ship confirm or once a delivery line is planned.
You can add multiple freight costs to a shipment from the list of allowable freight cost types that you define.
Note: If necessary, you can override the freight costs and suggested freight amounts at ship confirm.
You can also define multiple freight costs for a specific freight cost type.
For example, if you want to track different types of insurance, you can create different insurance costs under the insurance freight cost type
such as liability insurance or shipping insurance.
When you add freight costs at ship confirmation for a foreign currency order, you can use either your functional currency or the order's
foreign currency.
If you use your functional currency, the freight charges are converted to the order currency through Oracle Receivables.
Note: You should define all your freight costs in your functional currency for uniformity.
You can then modify the currency to match the order, and modify the amount on the Confirm Shipments window, as necessary.
Prerequisites
• Define your Freight Cost Type Lookups.
• To pass freight costs to Order Management and Accounts Receivable so that the customer is invoiced
(for example, freight terms = Prepay and Add), then a pricing modifier and pricing formula are required.
To define freight costs:
1. Navigate to the Freight Cost Types window.
1. (N) Shipping > Setup > Freight Carriers, Cost Types > Freight Cost Types
Freight Cost Types Window
2. (I) Find.
3. Select entity = Order Header.
4. (B) OK.
5. (B) Defaulting Condition Templates. The Defaulting Condition Validation Templates window appears.
Note: In the header region, ensure the following values are selected for the Application and Entity values (if you do not see
these values, do a query to find them):
Application = Order Management
Entity = Order Header
6. (I) New (place cursor in the Validation Templates region).
7. Enter a new validation template:
Condition Name = SH-Freight Terms for SH-Big City Electronics
Description = Used for Freight Terms for Customer XX-Big City Electronics
8. In the Validation Rules region, create two validation rules for the template you added:
14. On the Defaulting Conditions region, select a defaulting condition for the Freight Terms attribute (use the defaulting
condition template you created in previous steps):
Precedence = 3
Defaulting Condition = XX-Freight Terms for XX-Big City Electronics
Enabled = Selected
15. On the Default Sourcing Rules region, create a default sourcing rule for the Freight Terms attribute.
The sourcing rule defines what Freight Terms value is displayed when the defaulting conditions are met:
Sequence = 501 (or similar 3-digit value if you cannot use 501)
Source Type = Constant Value
Default Source/Value = To Be Determined
16. (M) Tools > Generate Defaulting Handler Package. This program generates the defaulting rules for the attribute.
17. (I) Save.
Disabling the Defaulting Condition SH-Freight Terms for SH-Big City Electronics for the Freight Terms Attribute
23. Navigate to the Defaulting Setup – Entity Attributes window.
24. Select Attribute = Freight Terms.
25. (B) Defaulting Rules. The Attribute Defaulting Rules window appears.
26. Select the Defaulting Condition = XX-Freight Terms for XX-Big City Electronics
Enabled = Deselected
Note: If the Enabled check box for the defaulting condition is not selected, the defaulting condition is disabled and the rules
and condition associated with this condition are not used in default rule processing.
33. In the Freight Terms field, notice that the default Freight Terms value is now Prepaid and not To Be Determined. This
means that you have successfully disabled the Freight Terms sourcing condition, and a different rule was applied to derive
the Freight Terms value.
Practice - Creating a Discount Modifier Using Qualifiers
Overview
In this practice, you will learn how to create a discount modifier to apply a 5% discount.
You will then create a sales order and see the discount applied automatically.
7. A discount of 5% will be applied for all products ordered, but only when:
Customer is Global Communications, and
Price list for the order is SH-Price List 4
8. Return to the header of the modifier and select the Active check box.
9. (I) Save.
Creating a Sales Order Using a Discount Modifier
Responsibility = Order Management Super User, Vision Operations
10. Navigate to the Sales Orders window.
(N) Orders, Returns > Sales Orders
11. (T) Order Information, (T) Main:
Customer = Global Communications. Required sales order header information defaults from your customer setup.
Order Type = Mixed
Price List = SH-Price List 4
12. (T) Line Items:
Ordered Item = DD-00010-0040-01
Qty = 10
13. (I) Save. Note the order number 66399.
14. (B) Actions > View Adjustments.
15. (T) Adjustments. Note that the 5% modifier discount has been applied.
Manual Apply
Freight and Special Charge List Modifier
Add freight charges that are applied to the sales order total
10% 20%
Freight Freight
Charge Charge
Assumptions
Oracle Order Management Super User responsibility
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.
Note: Oracle Advanced Pricing screenshots are shown in the Solution section of this practice. If you are running Basic
Pricing, the pricing system software components restrict exposure of advanced features in the pricing windows. Therefore,
the screenshots may differ from the pricing windows in the Oracle Application Vision database or comparable training or
test instance you use at your site to complete this practice.
3. (I) Save.
Defining the Second Formula
4. Enter the next formula
Name = SH-Handling
Description = Item Quantity x Constant .05
Formula = 1*2
5. Formula Lines region:
Formula Type Pricing Attribute Context Pricing Attribute Component Step
Pricing Attribute Volume Item Quantity N/A 1
Numeric Constant N/A N/A .05 2
6. (I) Save.
7. Run Build Formula Package
8. Build Attribute Mapping Rules
Defining a Freight and Special Charge List Modifier
Note: For freight charge modifiers, you can apply freight charges of one Charge Name (such as "Freight Costs") only once even
if more number of charges qualifies.
7. Navigate to the Define Modifier window.
Creating a Sales Order Using the Freight and Special Charge Modifier
Test Scenario
Explain New Selling Price
Quantity List Price Extended Amount Lump sum NEW Selling Price
100 20 2000 (100/10)=10 ---- (10*2)=20 (2000-20)/100=19.8
Line 2
Explain New Selling Price
Quantity List Price Extended Amount Lump sum NEW Selling Price
20 25 500 (20/5)=4---(4*2)=8 (500-8)/20=24.6
Discount for Third Unit
Customers who buy two bottles of shampoo receive one Currency unit off of the third bottle of shampoo.
1. Create a modifier.
Modifier Type: Discount
Modifier Level: Line
Product Attribute: Item Number
Product Attribute Value: DD-00030-0110-01
Volume Type: Item Quantity
Break Type: Recurring
UOM: Each
Value From: 3
Test Scenario
.
Explain New Selling Price
Quantity List Price Extended Amount Lump sum NEW Selling Price
100 30 3000 (100/3)=33---(33*1)=33 (3000-33)/100=29.67
Price Break
Scenario 1
All employees in Company ABC's mobile phone plan receive per minute discounts based on minutes used, as follows:
Minutes Discount Per Minute ($USD)
0-120 0.05
120-240 0.10
240-420 0.12
> 420 0.15
1. Create a modifier.
Modifier Type: Price Break Header
Modifier Level: Line
- Product Attribute: Item Number
2. In the Line Qualifiers window, create a qualifier for the price break modifier.
- Grouping Number: 1
- Operator: =
Overview
Processing Constraints enable you to control changes to sales documents in Oracle Order Management.
This chapter describes the Processing Constraints framework in detail.
Introduction
Processing constraints are rules that control who can change what and when they can change it.
Processing constraints can prevent certain changes, but can also be set up to perform actions based on those changes.
They can define actions that can result from these changes, such as requiring a reason for the change, triggering an action in Audit Trail or
Versioning, or raising an Integration Event.
With processing constraints, you can control:
• Who can make changes based on responsibility.
A constraint (rule) may apply to all responsibilities, to only a list of constrained responsibilities or to all except a list of authorized
responsibilities.
• More than just what can be updated. The following operations can be controlled:
Create, update, delete, cancel, and split all at the entity level. For example, given a set of conditions you may not want to allow a user to
create a new order line.
You can also control the update operation down to the attribute level.
For example, given a set of conditions, you could choose to allow update to the warehouse field of an order line but not to the price list field.
• Changes to entities. An entity roughly corresponds to a table or window.
The entities you can control in Order Management are:
• Order Header
• Order Line
• Order Sales Credit
• Line Sales Credit
• Order Price Adjustment
• Line Price Adjustment
• Order Payment
• Line Payment
• Sales Agreement Header
• Sales Agreement Line
• Changes based on a group of conditions.
The conditions must be collectively true for the constraint to fire or prevent the changes.
The conditions may be based on either the state of a workflow activity (where the entity is in the flow) or a value in a table.
A condition may also be based on a custom API, which means that you can call your own PL/SQL code to evaluate the condition.
Multiple conditions can be combined using either AND logic (all the conditions must be true) or OR logic (at least one of the conditions must
be true.)
A custom message can display when an attempt is made to violate a constraint.
This chapter details the differences between Processing Constraints and the functionality in Order Entry that it replaced - Security Rules.
It describes in detail the implications of selected values in the following forms:
Processing Constraints, Validation Templates and Record Sets. Finally, set up for processing constraints is demonstrated using the following
business examples:
• No one can change the customer purchase order at the line level;
your company requires that one sales order can relate to only one customer purchase order.
• No one can add a line to an order after any of the lines on the order have been invoice interfaced.
• A reason is required to cancel an order line after it has been booked.
• Only the Customer Service Manager can change the discount percentage on an order line after the line has been shipped.
• Require all return orders, identified by order type = Return, to be shipped to a central returns processing facility.
Constraints for drop ship functionality enable you to control changes within the drop ship flow between Oracle Order Management and
Oracle Purchasing. See Processing Constraints, page 10-1 for details on these constraints.
Versioning in Order Management uses constraints to enable automatic versioning.
You can use validation templates for example to drive versioning by transaction type as a condition.
By using the processing constraints and workflow activity, you can increment the version and determine the statuses available to version,
which give you complete flexibility setting up versioning. See: Versioning, page 10-21
Background
Security Rules provide functionality to control changes to orders.
However, they have certain limitations both in the philosophy and in implementation.
In Order Management there is a processing constraints framework usable by other products.
This framework provides to you the ability to:
• Control changes based on who is trying to make them (by responsibility)
• Define constraining conditions based on the state of related objects (for example, define a constraint on a line based on the state of the
order)
• Control changes based on the value of a field - see Validation Templates section below
• Call custom PL/SQL code to determine whether a condition is true
• Constrain operations at any point in the process flow. In prior releases you could only control operations for certain hardcoded cycle
actions.
Terminology
Processing Constraints are very powerful and setting them up is not difficult; however, knowledge of the following terms is helpful:
Entity
A group of related attributes that roughly correspond to a table or a window in Order Management.
The entities that can be managed using processing constraints are Order Header, Order Line, Order Price Adjustment, Line Price Adjustment,
Order Sales Credit, Line Sales Credit, Order Payment, Line Payment, Sales Ag reement Header, and Sales Agreement Line.
Entities correspond to 'objects' in the old security rules.
Attribute
A field or column that belongs to an entity.
For example, the ordered unit of measure is an attribute of the Order Line entity.
Attributes correspond to fields in the old security rules.
Operation
An action that you can take on an entity. The operations that can be controlled by processing constraints are Create, Update, Delete, Cancel
and Split.
Processing Constraints Framework
A generic facility that will enable you to define processing constraints for application entities and attributes.
It includes the set of APIs that will enable you to query the existence of any constraint against the operations you wish to perform on that
entity or its attributes.
Seeded constraints have the System box checked and cannot be modified.
Validation Template
Names a condition and defines the semantics of how to v alidate that condition.
These validation templates can be used in the processing constraints framework to specify the conditions for a given constraint.
Record Set
A record set is a set of records that are bound by some common attribute values (for example all lines on an order).
In the processing constraints framework, when you define constraining conditions, you may specify a record set to be validated for a given
condition as defined by its validation template.
Scope
Given a record set and a condition, the scope (Any/All) defines how the validation should be performed on records of the record set. "A ll"
requires the validation to be TRUE for every record in the set. "Any" requires the validation to be TRUE for at least one record in the set.
Conditions
The test(s) which must be passed for a constraint to be active. For example, a condition for a constraint might be that the order is booked.
Defining Processing Constraints
Processing Constraints Window Conditions Tab
Navigate to the Processing Constraints window.
Order Management > Setup > Rules > Security > Processing Constraints.
If the button for All Responsibilities is selected, then the constraint will apply to all users.
No one will be able to perform the constrained action. All seeded constraints are applicable to all responsibilities.
If you select the Authorized Responsibilities button, then only the responsibilities that you list will be allowed to perform the action.
All other users will be stopped from performing the action by the constraint.
If you select the Constrained Responsibilities button, then all users except for the responsibilities defined will be able to perform the action.
The users that you list will be stopped from performing the action by the constraint.
There are two other forms that are used in setting up processing constraints.
These are the Validation Templates window and the Record Sets window.
The validation templates and record sets you create, as well as the seeded ones can be used in the Processing Constraints window as described
above.
Note: After updating constraints and/or conditions, close and reopen the sales document windows for the updated constraints to apply
correctly.
Guided Demonstration - Setting Up a Processing Constraint
In this demonstration, you will learn how to set up a processing constraint that prevents a sales order header from being updated
when the order is booked or when there are order lines created.
Processing constraints control who can change what and when they can change it.
Processing constraints can prevent certain changes, but also can perform actions based on those changes such as requiring a
reason for the change, triggering an action in Audit Trail or Versioning, or raising an Integration Event.
Applying the Processing Constraint to a Sales Order (Constraint Based on Booked Orders)
Applying the Processing Constraint to a Sales Order (Constraint Based on Existing Lines)
Note: To view the available privileges for a selected role, click Edit Role to display the Shipping Execution Role Definition windo w.
4. In the Org field, select the organization to which the grant is assigned (optional).
A user can be assigned only role per warehouse (organization). However, you can assign a different role to a different wareho use.
5. In the Start Date field, enter the date that you want the role to start.
6. In the End Date field, enter the date that you want the role to end. If you do not want the role to end, leave the field blan k.
Once the grant is saved, only the end date can be updated. However, the date cannot be upd ated once it has expired.
Finding Deliveries
3. Ensure that you are in the Delivery Confirm View.
4. You can find the deliveries in the Quick Ship window using any one the following methods:
Enter the delivery in the Name field and click Tab
Click on Name LOV to find for a delivery.
Click on the Find icon to find the delivery using Find Deliveries window. In the Find Deliveries window, you can
find the delivery based on the search criteria you enter.
Click on the field to be moved. Click (M) Folder and click on Move Right, Move Left, Move Up, and Move
Down to move to respective position.
Right click on the field to be moved. Select the Folders option in the popment, and click on Move Right,
Move Left, Move Up, and Move Down to move to respective position.
11. The Customer and Order Type fields get populated based on the Order Number field value.
12. Click (T) Inventory. Set Auto Allocate to Yes. (From Release Rule)
13. Click (T) Shipping. Set Auto Pick Confirm and Autocreate Delivery to Yes.
14. Click (B) Execute Now to pick release and pick confirm the order.
Ship Confirmation
The Line Status Is Ready To Release You Must Go To Inventory To Transact Move Order
Find SO Number
Cause #1:
The rules are not yet visible though they are created. This could be because they are not enabled, or because the
"Generate All Rules" concurrent program (WMSGRULE) was not run.
SO LUTIO N
Sometimes the enabled flag on the rule or association is not checked. Other times the Rules were not generated.
1. Review each Picking Rule defined in Inventory > Setup > Rules > Picking Rules.
2. Ensure each rule is enabled.
3. Press the associations and ensure that each association is enabled.
4. Run the "Generate All Rules" concurrent program (WMSGRULE).
Note: If your responsibility does not have this, you could add it to your responsibility using System Administrator > Security >
Responsibility > Define. Query your responsibility and see what your request set is. Then choose System Administrator >
Security > Responsibility > Request, query your request group name, add a row for the program "Generate All Rules".
19. Click on the Delivery, Path by Stop and Path by Trip tabs. The delivery and trip should have been autocreated.
If not, use the Actions LOV to Auto-Create Deliveries, Auto-Create Trip.
20. Navigate to the (T) Delivery tab. Click (B) Ship Confirm.
select trigger_name,status,owner from dba_triggers
where trigger_name like '%ADS_WSH_DELIVERY_DET_TRG1%';
22. You will get a message that the delivery was successfully confirmed. Click Ok and close the Shipping
Transactions window.
Verifying Status
23. Open the Quick Sales Orders window to check the status of your order. It should display as Shipped.
24. Click (M) Tools > Workflow Status to see the current status of your order. Click (B) View Diagram to see the
diagrammatic representation of the order flow. When a workflow activity (represented by a box) is enclosed
with a green line, it implies that the activity is in progress.
Viewing the Shipping Details from the Quick Sales Orders window
25. Click (B) Actions > Additional Line Information to view the delivery and trip information and status.
Order Header Main Tab Line Status Additional Line Information
Booked Shipped Delivery Status = Closed
Picked Status = Shipped
Trip Status = Closed
26. From the Quick Sales Orders window, navigate to (M) View > Requests. Click (B) Submit a New Request
(single request) and select the concurrent request Workflow Background Process. Enter the following as
parameters:
Parameters window:
Item Type: OM Order Line
Process Deferred: Yes
Process Timeout: No
27. Click Submit to process your request. You will get a request ID that you can track in the Find Requests
window. Click Find to see your request processed. It should complete as Normal.
28. Return to the Quick Sales Orders window. Query for your order by using the F11 key. Enter your order
number and use the Ctrl-F11 keys to get the query results. Though your order status still displays as Booked,
the line status should show up as Closed.
29. Navigate to (N) Receivables > Interfaces > AutoInvoice. Click (B) Submit a New Request and then select a
single request when prompted. The concurrent programs window opens to enable you to run AutoInvoice.
30. In the Name field select the AutoInvoice Master Program and enter the following parameters when the
parameters window pops up:
Parameters for AutoInvoice:
Organization: All
Invoice Source: ORDER ENTRY
Date: your current date
(Low) Sales Order Number: Look for your sales order number in the LOV and select it
(High) Sales Order Number: Look for your sales order number in the LOV and select it
31. Click Ok and return to the main window. Click Submit to run AutoInvoice. You will be given a request ID,
which you can use to track the status of your request. It should complete as normal.
Viewing your Invoice details
32. (N) Quick Order Organizer. Enter your order number and click (B) Find. When your order appears in the
result list, click (B) Actions > Additional Order Information > (T) Invoices / Credit Memos.
33. Click (B) Invoice Details to view the invoice that has been autocreated from your order.
Receivables, Vision Operations (USA)
Practice - Customizing the Quick Sales Orders Window
Overview
In this practice you will learn how to customize the Quick Sales Orders window.
Enable Diagnostics
Tasks
1. Login to the database with the login and password that you created in the previous practice.
2. Choose the responsibility Order Management Super User, Vision Operations (USA).
3. Create a folder at the header and line level using the Folder tool.
4. Enable Diagnostics.
5. Personalize the Quick Sales Orders window.
Choose Responsibility
3. Place your cursor on any of the header fields and then select (M) Folder > New or (I) Folder Tools > (I) New.
9. Verify the following: your new folder name, all tabs in the Lines block, Regions – should be visible on the window.
10. With the Quick Sales Orders window open, navigate to the Personalizations window: (M) Help > Diagnostics >
Custom Code > Personalize
11. If there are seeded Personalizations already in the window, do not modify them.
12. Enter a short description in the Description column, “Workflow Status menu”. Select the Level as Function and select
the Enabled box.
13. (T) Condition: Select the Trigger Event as WHEN-NEW-FORM-INSTANCE with a processing mode of BOTH.
19. Close the Personalizations form and return to the Quick Sales Orders window.
20. Close the Quick Sales Orders window and reopen it. Check if the Workflow Status menu option is now available in the
Tools menu.
Use the Specials Menus to add some menu option to your Quick Sales Order window. The list is below:
Function Special Menu #
Find Customer SPECIAL1
Workflow Status SPECIAL2
Price Debug SPECIAL3
AutoSchedule SPECIAL4
User Sets SPECIAL5
Purge SPECIAL6
Show Line Details SPECIAL7
Item Search SPECIAL8
Quick Customer Entry SPECIAL9
Debug SPECIAL10
Apply Holds SPECIAL11
Mass Change SPECIAL12
Schedule SPECIAL14
Audit SPECIAL15
Scheduling in the Sales Orders
Scheduling Activity
The Schedule function can be performed anywhere in a process flow according to your business needs. If you want to setup sche duling to run
automatically, you can set it as a synchronous function within the workflow process so it will happen automatically. The profile option OM:
Autoschedule should be set to Yes.
Or the user can schedule manually directly from the sales orders window. See Scheduling for details on scheduling setup.
Practice - Using Scheduling in the Sales Orders Window
Overview
In this practice, you will learn how to schedule an order both manually and automatically. Your customer XX-Big City
Electronics wants to order 15 units of item XX-Phone, 45 days from today’s date.
Assumptions
Oracle Management Super User, Vision Operations responsibility
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.
You have set the following system parameter. Setup-> System Parameters -> Values
Reservation Time Fence = 30
* The Time Fence Reservations are performed automatically whenever a line is scheduled and the schedule date is
within the reservation time fence.
For example, suppose the today's date is November 25th. An order line is scheduled for December 1st, which is 6
days away. If the reservation time fence is 10, the line will be reserved because 6 < 10. If the reservation time fence is
2, the line will not be reserved because 6 > 2. If the reservation time fence is NULL, then lines will not be
automatically reserved. The reservation time fence is set using the system parameter Reservation Time Fence .
Reservations Time Fence is affected by the scheduling parameters, Allow Partials.
If you want the reservation time fence to reserve as much as possible, even though full supply is not available, set the
scheduling parameter to allow partials.
7. (B) OK.
8. (T) Line Items, (T) Shipping.
Note: Notice that the schedule ship date has been set to the request date.
Reserving the Order Line
9. From the Tools menu, select Scheduling > Reserve.
Check The On-hand Item Status Before And After Reservation
Item Code = DD-00010-0040-01
10. Click OK.
11. On the Shipping tab note that the Qty Reserved field shows the reserved quantity.
Prepares and publishes quotes for assisted selling of products and services to customers and business partners.
Creates and manage quotes as a negotiation tool and transition the quote to a firm order acting as a single point of entry in to Order
Management.
Allows quick entry of order lines with a minimum of data entry. Quoting processes the quote and submits to Oracle Order
Management a firm order complete with approvals (Internal/External). Relevant information captured by the quote flows th rough to
the order.
Oracle Order Management includes a workflow phase to support the activities that typically occur within a negotiation process , such as
internal approval and customer acceptance. This allows you to create and manage quotes during the negotiation phase and t ransition the quote
to a firm order. Features include:
Miscellaneous
Both Quotes and SAs use the same seeded Negotiation workflows.
After Customer Acceptance, Quotes transition to a sales order and Sales Agreements become Active.
SAs do not capture an Offer Expiration date and therefore do not leverage this functionality in th e Negotiation flow.
Unsupported Features
The functionality supported with Quotes is similar to the level of support for Sales Orders. There are a few Sales Order feat ures that are not
available during the negotiation phase of a transaction including:
Holds
Scheduling
Copy a return from a quote.
Independent line flows
Cancellations – progress to LOST Status
Ship and Arrival Sets
Commitments
Quotes for returns or Internal Sales Orders
Sales Agreements - Can specify sales agreement reference on a quote but released quantity and released amount on a sales
agreement are updated only when a quote is converted to an order
Setup
Transaction Type
To create a Transaction Type
1. Set up the transaction type. See Transaction Types for generic setup instructions.
Note : that when the transaction type contains both a fulfilment and negotiation phase there are some additional implementation
considerations associated with set up.
These impact when and how document numbers are generated by document sequencing.
On the transaction type set up form there is a check box for retain Document Number.
When an order type is created two categories are created.
Depending upon the value of Retain Document Number the following steps need to be taken.
SH Qut To So
2. If you want to keep the document number from the quote when the transaction moves to fulfilment, use the category appended with
“TTXXX-Quote” when creating and assigning document sequencing.
3. If you need to generate a new document number for the transaction in the fulfilment phase, two document sequences need to be set
up:
o One for fulfilment, using the category with no appending text “TTXXX”
o One for the category appended with “-Quote”.
If this is not set up correctly then the document will not transition to fulfilment because the document cannot be assigned a
Sales Order Number.
NOTE: Retain Document Number check box applies only to transaction types with Sales Document Type of Sales Ord er.
Sales Agreements have only one document number, Sales Agreement Number, associated with the transaction irrespective
of whether agreement is in negotiation or fulfillment phase.
4. Then optionally assign a default transaction phase.
The transaction phase defaults to either Negotiation or Fulfillment based on Order Management defaulting rules when the quick
sales or standard sales order form is opened. The transaction phase always defaults to Negotiation independent of the default ing
rules when the form is opened through the Quotes menu option. If the transaction phase defaults to Negotiation, only the transaction
types that also have a negotiation workflow associated with it are displayed.
In the absence of a default, the fulfillment phase is automatically populated by the system.
Note: The transaction phase can be changed up to the point of saving the transaction or before lines are entered. Once the trans action
is saved or lines are entered, the transaction phase cannot be changed and the transaction phase field is non-updatable.
You can set the transaction phase directly on the sales document; the transaction phase determines where in the workflow the transaction
starts. Using a single transaction type you can choose to begin the transaction process in either phase if both fulfillment and negotiation
workflow assignments exist on that transaction type.
Note: While Sales Orders lines are assigned a line type through which the transaction is processed, quotes and SAs do not use line types and
follow a header flow only.
Transaction type designed for use with Sales documents For example in addition to header and line block data:
SA uses the following settings on the transaction types:
Document numbering
Flow assignments
Layout and contract templates.
Transaction phase
Quotes use:
Retain document number
Header flow assignment
Transaction phase
Layout and contract templates.
Workflows
Quotes and Sales Agreements leverage the flexibility of Workflow to manage the quote life cycle. There are two phases for workflow:
Negotiation and Fulfillment. Workflow flexibility allows you to tailor your Negotiation and Fulfillment phases to your specif ic processes.
You can choose one of the following generic seeded header-level negotiation flows, these flows can be associated to transaction types for
both Sales Orders and Sales Agreements. Both can be converted to an order. Quotes can be converted to sales orders in either the Entered or
Booked status (if the booking activity is synchronous). The seeded workflows are as follows:
Negotiation Flow - Simple :This workflow does not require any approvals nor customer acceptance. However the quote can either
expire or get lost if it does not progress to being converted to an order.
Negotiation Flow—Generic: Simple negotiation flow, without approval. Prepares quote document, get customer final acceptance,
convert quote to the Sales Order.
Negotiation Flow—Generic with Approval: Flow with Approval. Prepare quote document, get management approval, get
customer final acceptance, and convert the quote to an order.
In support of a quote the following Status types are predefined:
Draft
Pending Internal Approval
Lost
Pending Customer Acceptance
Draft Submitted
Internal Approved
Customer Accepted
Offer Expired - This status does not apply to Sales Agreements.
Draft - Customer Accepted
Draft - Customer Rejected
After a quote has been put together, it can be submitted for approval. The relevant documents can be routed to various people in
the organization, including people from Sales, Business Practice, Legal, or Finance, for review.
The list of approvers is defined at the Transaction Type level.
The document must be approved by each participant in the list before the transaction is eligible to move forward in the
workflow. If the approver fails to respond within the time limit, the system will re-send the notification. If the approver again
fails to respond, the system will either send the notification to the next approver (if the current approver is not the last approver),
or reject the notification based on the system parameter setup.
The Approver List can be accessed two ways:
1. From the Transaction Type setup window: (N) > Orders, Returns > Setup > Transaction Type > Define. Select the
Approvals button to bring up the Approver List.
2. Navigate directly to the window: (N) > Orders, Returns > Setup > Transaction Type > Approvals.
If an approver is deleted from the list the notifications still need to be processed.
If an approver is added to the list and any transaction is pending approval they will receive a notification.
The user will receive a notification and must approve or reject.
Practice Quotes Functionality.
Topics that I will cover here are
1. Setup
2. Defaulting Rule & Generation of Defaulting Rule (When Required).
3. Profile setup.
4. Transaction Type.
Oracle Quotes offers limited capability to create Quotes and Progress it through the Negotiation phase and finally creates Sales Order .
In case your Organization has complex / advance quoting needs you should Implement Oracle Sales Quoting.
One of advantage of Sales Quoting is that it enhance user experience , since it is part of OM , it retrieve all the relevant information from
the Order management and once created and approved it creates Sales Order without much input from user.
In Oracle OM Quotes, Oracle has provided Negotiation , Customer Acceptance and Sale Order creation feature.
Following are features introduced in Oracle Quotes
1.Seeded Work flow ( Oracle has Introduced 2 worklfows ).
Workflow has introduced for the Order Header Type Only (OENH) , there is no Workflow for the Quote Lines.
Negotiation Flow - Generic - It Support Negotiation , Customer Acceptance and Conversion of negotiation into Sales Order
Negotiation Flow - Generic with Approval - It Supports Negotiation , Internal Approval , Customer Acceptance and finally conversion
into Sales Order.
With these workflow customer has flexibility to customized their Quotes process by adding or removing Fun ctions.
2.Quote Expiration Date - Every Quote has expiration date , once expiration date reached , Quot e will be expired and Quote Headre
workflow is eligible for Purge.
SETUP
1.Transaction Type Setup
Set Document Sequence
2.Defaulting Rule Setup - This Defaulting Setup is required to populate the Transaction phase = " Negotiation " in Order Header Form.
Note: Common Mistake in these area are (User forgot to generate the defaulting Rule after enabling this Rule).
3.Profile Setup - this is Not a required setup , unless their is business requirement .We can leave this as blank.
4.Transaction Types - Oracle has introduce following New transaction types for Quotes Draft,
Pending Internal Approval, Approved, Lost, Pending Customer Approval, Accepted
Enter line details for quote , there will be no Line level workflow associated with Quote lines.
Quote Header Workflow is in Submit Draft Eligible Notified Status.
Once the Negotiation Process is complete , Progress the Quote header from the Negotiation Phase
Quote status will be now "Pending Customer Approval ".
Once receive confirmation from customer regarding Approval /rejection , approve or reject the quote.
Once Quote is Approve , It automatically converted in Sales order .
System will Automatically Assign the Order Header level and line level workflow to Sales Order and Lines.
Order Header Workflow will be at "BOOK - ELIGIBLE" Notified and
Order Line Workflow will be at "Wait for Booking" Notified
Difference between back to back and drop shipment flow in Order management
Conceptual Difference:
Back to back flow - A business scenario where the material is specially purchased for a particular sales order and the material
needs to be received Into one of The warehouses of the selling group of companies, is referred as "Back to back" cycle.
Back to back Purchase order is hard linked to the sales order until it is received.
Please note highlighted words here. Since, the material is received into the warehouse, the sales order needs to follow additional
picking/packing/shipping process only after which the goods are sent to the customer.
Drop Shipment flow - A business scenario where the material is specially purchased for a particular sales order and the material
is directly sent from the supplier to the customer, is referred as "Drop Shipment" cycle.
Drop shipment purchase order is also hard linked to the sales order until is received. However, in this case the material is never
received in the internal warehouse. Also, no additional picking/packing/shipping is involved by the selling company. Hence,
when such purchase order is received it is directly shipped without any physical shipping process.
e.g. Requisition Requested, Requisition Open, PO Open E.g. Awaiting Receipts – only status until PO is received
Vie wing PO reservations Available in sales order line-Actions>Reservation details screen Available in Sales order line->Actions->Additional Line
information
PO re ceipt Physical receipt of the material happens Only logical receipt of the material
Flow of purchased material Material is received inside the warehouse and then shipped Material is never received in the warehouse, it is shipped
directly from supplier to the customer
Afte r receipt Stock of the goods received increases, stock gets reserved to the Stock is received and immediately shipped out by the system.
sales order automatically Sales order status changes directly to “Shipped”
Sales order status changes to “Awaiting Shipping”
Sales order de livery Delivery lines are created in shipping when PO is received No delivery lines are created, since shipping process in the
lines/delivery system is skipped
Drop Ship Setup Steps
1-Create Transactions Type (Sales Order Type)
2-Defaulting Rules (Source Type)
3-Profile Options
4-Create New Buyer
5-Create New Item
6-Reciving Options (Clearing Account)
7-Drop Ship Test Cycle
Tasks
1. Login to the database and navigate to the Sales Orders window.
2. Use the following header information for your drop shipment order:
Operating Unit: Vision Operations
Customer Name: Business World (1608)
Customer PO: XX-015
Order Type: Mixed
(T) Others > Warehouse: D1
1. Set the profile option INV:Advanced Pricing for Intercompany Invoice = No. This is set as a personal level profile
option.
2. Switch responsibility to Order Management Super User, Vision Operations (USA).
3. (N) Inventory > Setup > Organizations > Intercompany Transaction Flows
Start Operating Unit: Vision Operations
End Operating Unit: Singapore Distribution Center
Type: Procuring
Ship From/To Organization: D1
At the Nodes level, enter the following:
Seq: 1
From Operating Unit: Vision Operations
To Operating Unit: Singapore Distribution Center
4. Click (B) Intercompany Relations. Enter the following information in the window:
Customer: Vision
Number: 1021
Location: 5490
Transaction Type: Invoice
COGS Account: 01-580-7740-000-000
Supplier: Vision
Site: New York
Inventory Accrual Account: 01-000-1810-0000-000
Expense Accrual Account : 01-000-1110-0000-000
5. Save your work. The setup steps for drop ship are complete.
Drop Shipments Flow
12. The status of the order line will change to Awaiting Receipt.
13. The workflow status of the line is below. (M) Tools > Workflow Status
Run the Requisition Import concurrent program
Note: Please use the Purchasing option / responsibility’s Reports > Run functionality and not Order Management’s.
22. Select the requisition or requisitions that you require by clicking the box on the left of the Requisition
column. Click (B) Automatic.
23. In the New Document window, select the supplier as Vision and supplier site as NEW YORK.
24. Click (B) Approve to approve the purchase order when the Purchase Order window appears.
Note: Please ensure that the Submit for Approval box is selected.
Note: Use Order Management Super User, Vision Operations (USA) or comparable Supe r User Order Management responsibility.
1. Create an item using the Inventory > Items > Master Items.
2. Select the Vision Operations (V1) organization if prompted.
3. Setup Item Attributes for a standard item SH-FG2.
4. The item type for the item SH-FG2 should display a value Finished Goods and an Item Status of Active.
Enter the following attributes in each of the tabs indicated below:
(T) Purchasing – Select Purchasable box. Enter a list price in the List Price field.
(T) General Planning – Select Buy in the Make or Buy LOV
(T) Work in Process – Select Build in WIP box
(T) Order Management – Select Customer Ordered box and Assemble to Order box
5. The profile option MRP:Default Sourcing Assignment Set should be set to Null or any %Supplier% value.
6. Add the item SH-FG2 to the Corporate pricelist. (N) Pricing > Price List Setup.
Create an order
7. Navigate to the Quick Sales Orders window:
8. (N) Orders, Returns > Quick Sales Orders. Create a sales order for Business World:
Customer: Business World (1608)
Order Type: SH-Mixed
Warehouse: SH1
Operating Unit: Vision Operations
9. Verify the following on the Main tab and Others tab (if the field is not visible on the window, you can folder-enable it):
Operating Unit = should be Vision Operations
Warehouse: SH1
Price List: Corporate
14. Close the Workflow Status window to return to the Quick Sales Orders window.
Run Requisition Import
(N) Orders, Returns > Requisition Import
Import Source: CTO
Group By: Item
Multiple Distributors: No
Initiate Approval after re-import: Yes
After the concurrent request is processed successfully, the Sales Orders line shows External Req Open.
Find the PO Requisition
15. (N) Purchasing > Requisitions > Requisition Summary
16. Clear all fields and enter CTO in the Import Source field. The Requisition Headers Summary window displays.
17. The Approval Status should be Approved. Verify that the line information corresponds to that in the sales orders window.
AutoCreate the Purchase Order
18. (N) Purchasing > AutoCreate
19. In the Find Requisitions window, click (B) Clear and enter the PO Requsition number you created in Step 20140022.
20. In the AutoCreate Documents window that displays, verify the requisition details and click (B) Automatic to create the
purchase order.
28. Note: The line status on the Sales Order is Awaiting Shipping.
31. Check the on-hand quantity in the Quick Sales Orders window, it should be 100.
32. Pick Release the order.
Profiles
OM: Default Sales Agreement Type
This enables the system to use a common (default) transaction type across Sales Agreements to generate unique sales agreement
numbers. There is no default value for this profile option.
This profile is seeded as available to setup at the responsibility and site level.
In most business processes, the profile option can only be modified by the System Administrator.
The profile is visible to the user but not updateable.
OM: Default Agreement Transaction Phase
This profile enables the system to use a common transaction phase across Sales Agreements.
Defining transaction types for Sales Agreements
Navigate to the Transaction Types window to set up transaction types.
Tasks
Create a Sales Agreement (SA)
1. Business World (1608) has contacted you to place a long-term order for item SH-FG2. They wish this to be supplied every
week in quantities of 15 for a period of 30 weeks.
2. Create a SA for Business World that incorporates all the conditions for a long-term order.
3. Create one or more sales orders that refer to the SA and track the Released Amount.
SA Creation
Note: The above image shows the SA window, Pricing tab and above that, the Price Lists window is displayed.
5. Click (I) Save and close the Price Lists window to return to the SA window.
6. In the SA window, in (T) Fulfillment in both the upper and lower regions, enter the following information:
Min Quantity Agreed: 15
Max Quantity Agreed: 30
7. In (T) Fulfillment of the lower region, enter the following information:
Min Release Quantity: 15
Max Release Quantity: 30
Min Release Amount: 1000
Max Release Amount: 100000
8. In (T) Accounting for both the header and line regions, enter Payment Term of 30 NET and ensure that the Currency is
USD.
9. In the lines (lower) region, in (T) Main, enter Item Context as Internal Item Number and Item as SH-FG2 with a UOM of
Ea.
10. (I) Save and take note of the Status of the SA. It will appear as Draft. Select Submit Draft from the Actions button to
change the status to Pending Customer Acceptance.
11. (B) Actions > Customer Accepted. This will change the Status to Active. Now you can use the Sales Agreement in an order
release.
12. Write the name of the SA here 201401. Save your work and close the window.
Note: Alternatively, you can create a new sales order using the (N) Orders, Returns > Sales Orders option and refer to the
SA in the order header.
16. In (T) Line Items, enter SH-FG2 with a quantity of 15.
17. (I) Save. Close the window and return to the Sales Agreement Organizer. Click (B) Open Agreement.
18. In the upper region, go to (T) Fulfillment, you will see the release (sales order) amount in the Summary section in the field
Released Amount. The SA is constantly updated to reflect the latest Released Amount with each order created against it.
Returns and Credits
Overview
Oracle Order Management provides Return Materials Authorization (RMA) functionality within the Sales Orders window, where you can
enter both standard and return order lines within the same order.
RMA is often used interchangeably with Return or Credit Orders and Returned Material.
An order can have a mix of outbound (standard) and inbound (return) lines, as restricted by the order type definition.
Credit order types can have an order type category as Return or an order with both standard and return lines can have an orde r type category
as Mixed. Each order type and each line type is associated with a workflow process.
A return line is indicated by Line Type Category of return negative and highlighted item quantity and negative line total.
Return Line types can include flows like Return with Approval, or Return for Credit Only, etc.
There are three ways to create RMA's within Order Management. First, identify a sales order to be returned and query the orde r lines.
After you have selected the sales order or order lines, use the Copy function in the Actions list to generate the return order or line by
specifying an RMA line type. Second, reference a sales order, invoice, PO number or serial number of an item directly in the Return
Reference field within the Line Items tab of the Sales Orders window.
Lastly, for return without originating sales order line, manually enter return line information and choose the appropriate return line type in the
Sales Orders window.
Setup
Profile Options
OM: Return Item Mismatch Action
This profile allows a mismatch value between the item on the RMA line and the item on the referenced line.
For example, you may need to allow a mismatch when a wrong item is shipped and you want to put the correct item on the RMA line.
The seeded value is Allow or no profile option entry will be treated as Allow.
OM: Return Unfulfilled Referenced Line Action
This profile allows non-fulfilled lines to be used as referenced lines.
The seeded value is Allow or no profile option entry will be treated as Allow.
OM: Over Return Tolerance
This profile option indicates the percentage by which a return line can be over-received.
Any value greater than or equal to zero (0) is a valid value. This profile option is set at the site level. The default value is zero (0).
OM: Under Return Tolerance
This profile option indicates the percentage by which a return line can be under-received for it to be considered fulfilled.
Any value between zero (0) and 100 (both inclusive) is a valid value. This profile option is set at the site level.
The default value is zero (0).
OM: Charges for Back Orders
In previous releases, Calculate Price Flag on the split (back order) lines was set to Freeze Price always.
Now in the current release, for return lines that are split, this profile option enables you to control the setting of the Calculate Price Flag
to calculate, partially calculate or freeze the price.
If the Calculate Price Flag is set to Partial, no repricing is carried out and only charges can be applied for return lines.
If the Calculate Price Flag is set to Freeze, the return lines are not priced. For a value of Calculate, the return lines are priced.
Workflow
Order Management comes with seeded Oracle Workflow processes. Review the seeded flows, activities and notifications to determine if the
seeded data can meet your business needs.
To successfully enter an RMA in OM, you can use the
Generic - Order Flow Return with Approval
Line Flow - Return for Credit only.
Line Flow - Return with Receipt Only, No Credit
Note: For Mixed Order types, if the workflow attached is Order Flow Return with Approval, then notifications are sent to the users only if
the order contains return lines.
The user can also modify existing seeded workflows or create new workflows to include or exclude inspections and/or invoicing activity.
For instance, you can have the Invoicing Activity after the Receiving activity, or you can simply close the line without interfacing data to
Receivables. For inspections, a workflow can be setup to process Invoicing once the materials have been received or to wait until inspection
has been completed before invoicing is invoked.
The seeded workflow will process Invoicing only after the completion of Inspection (delivery) Activity. Also, if any return lines are flagged
as non-shippable or non-transactable, the Receiving workflow activity will complete with a Not Eligible result.
However, fulfillment of ATO/PTO items is required before crediting the ATO/PTO lines.
This is achieved by inserting ATO/PTO lines into Fulfillment sets. This means the ATO/PTO line will wait at fulfillment until all its children
are received and reach fulfillment.
ATO model line workflow waits until the configured line is shipped and then it progresses further no matter whether it is PTO and ATO or
only ATO or PTO.
With services, OM will use only the seeded "Return for Credit Only" workflow for returning service items when product items are returned.
Now, Order Management will use the RMA line to govern full or partial credit to the customer when a product is returned.
Install Base will use the information from the RMA product line to determine whether a credit is given.
Transaction Types
Both order and line transaction types need to be setup in order to process an RMA.
When setting up order types, you need to assign order header and line workflows to the order type.
Since each line can go through its own flow process, you need to setup workflow assignments to let each line assign its own workflow
process.
Credit order types have an order type category Return. An order with a Mixed order type category can contain both standard and return lines.
Line level workflow processes are assigned based on the order type, line type, and item type combination.
When you setup a return order type or mixed order type, you have the option to set a default return line type, so that the user doesn't have to
manually choose the line type unless they want it to be different. Refer to the topical essay Using Transaction Types in Oracle Order
Management at the end of this manual for details on setting up transaction types.
Processing Constraints
Order Management has seeded constraints that prevent data integrity problems.
For instance, you can prevent change for a line if it has been:
Closed
Canceled
Canceled at order level
Shipped
Invoiced
A return line cannot be canceled after it has been interfaced to Receivables or after it has been received. If your business needs more
restrictive rules when processing orders, you can set up rules to control changes or operations of the order process flow.
See Processing Constraints, page 10-1 for details on setting up processing constraints.
Return Reason Codes
You can set up your own reason codes in the Receivables QuickCodes window.
Navigate to the Order Management responsibility and select the menu: Setup > Quickcodes > Receivables.
The Oracle Receivables Lookup window will appear. Query the CREDIT_MEM O_REASON code from the query manager (Flashlight icon).
View the existing codes or add a new code. These codes appear in the Return Reason list of values.
Reports
The Returns by Reason report can be used to view all return reasons setup in the system. You can run the report by Return Reason, Credit
Order Date, Credit Order or Line Type and/or Item Number.
Freight and Special Charges for Returns
When setting up freight or special charges, you can specify if th e charge is returnable, meaning the charge may be refunded. When you create
a return line from an original order line, you should copy the refundable invoiced charges.
You can also setup special charges to be applied specifically to returns, like restocking fees, return handling, damage etc. You can set this
through an attribute called Refundable Flag (Include on Returns field) within the Pricing Modifier setup.
See Freight and Special Charges, page 3-101 for more information.
Process Flow
This section will guide you through a basic flow for a Return for Credit with Receipt, from entry to generating a credit memo, including:
• Create an RMA having a single line whose originating transaction is unknown
• Book the RMA
• Receive the RMA using the Receipts window of Oracle Purchasing
• Check the on-hand quantity of the item in Inventory to verify that correct quantity was received
• Fulfill RMA line
• Generate a Credit Memo
• View the Credit Memo in Order Management
• Check the Shipped and Fulfilled quantity on the RMA line
1. Enter the RMA on the Sales Orders window. Entering a return on the Sales Orders window is exactly the same as entering an order, except
at the line level the user specifies the Line Type as a Return and a negative line quantity.
Thus, in the Order Information tab of the Sales Orders window, the user will enter the same information (i.e. Customer Name, Order Type,
etc.) as a standard order.
The Standard order type is assigned to a Generic Order and Line workflow which allows either an order or return to be entered.
Refer to the Workflow section for details on the Generic Order and Line workflow for returns.
This is the Sales Orders window for entering the Header information for the RMA:
Sales Orders (Header) window for Returns
2. Once the Order Header information is entered, you will enter the line information within the Line Items screen:
Line Items Window
3. In the Main Tab, enter the Ordered Item and the Quantity to be returned.
The user can enter a positive or negative number. You will also see that the negative quantity will be highlighted in another color.
Next, in the Returns tab, the user will need to enter the Line Type as a return (i.e. Return for Credit with Receipt of Goods) and
enter a Return Reason. A Return Reason is required to be entered (i.e. Product Discontinued).
Since we did not reference a sales order, we are entering a single line RMA where the originating transaction is unknown.
If you receive the returns partially, and if the Calculate Price Flag is set to Y (Calculate Price) or P (Partial Price), then freight charges get
applied automatically on the partially received lines.
However if the Calculate Price Flag is set to N, then the freight charges do not get applied on the partially received lines.
4. Book the RMA. Users are able to book an order or return at either the Order Information Tab or Line Items Tab via the Book button.
5. Receive the RMA using the Receipts window in Oracle Purchasing.
Change responsibilities to Purchasing and navigate to the Receiving > Receipts window.
In the Find Expected Receipts window, an Organization window will be displayed if this is the first time you have navigated to the
Purchasing > Receipts window since your login.
The organization you choose should be the same warehouse where your RMA is created.
In the Receipt Header window, select the Customer Tab and find your RMA #.
6. Check the on-hand quantity of the item in Inventory to verify that correct quantity was received.
Change responsibilities to Inventory and navigate to the Transactions > Material Transactions window.
In the Material Transactions window, an Organization window will be displayed if this is the first time you have navigated to the Inventory >
Material Transactions window since your login.
The organization you choose should be the same warehouse where your RMA is created.
Find the item being returned and navigate to the Transaction Type tab.
Verify that the source type is RMA and the source is your RMA # for the quantity being returned.
This window will show you your item #, the subinventory chosen and the quantity specified to be returned from the Receipts window.
Material Transaction Window
7. Fulfill RMA line.
The fulfillment activity acts as a synchronization point for all lines on the order that are in a fulfillment set.
The lines in the fulfillment set will wait at the fulfillment activity until all the lines in the set have reached the activity.
Lines that are not in a fulfillment set simply pass through the activity automatically.
The user will not have to perform anything during this step.
The eligible lines will automatically be put into a fulfillment set.
8. Generate a credit memo for the return. The Workflow process of the return line(s) will be on the Invoice Interface activity, once the
Fulfillment activity completes. The invoice interface activity places the information from the return line into the Receivables Interface tables.
Once the information is written to the tables, the invoice interface activity is complete, and the line proceeds to the close line activity.
However, note that the credit memo is not actually generated until the Autoinvoice program in Receivables has been run.
The credit memo will then be viewable in the Sales Orders window.
To run the Autoinvoice program, the user needs to change responsibilities to Receivables and navigate to the Interfaces window.
Select the Autoinvoice Master program and run the program for your RMA # and specify the invoice source as the one associated with the
line type of the RMA line.
The Autoinvoice Master program will generate the Autoinvoice Import program which generates the credit memo.
These programs can be setup to run automatically in the background. Just set the programs as 'Deferred.'
9. View the credit memo in Order Management. To view the credit memo in Order Management, the user need to change responsibilities to
Order Management > Orders, Returns > Order Organizer window.
Query your RMA # in the Order Organizer. Once the RMA is queried, open the RMA order, click Actions and choose Additional Order
Information. Once the Additional Order Information window has opened, click on the Receivables tab to view the credit memo.
This window will show your the credit memo number and amount.
10. Check the Shipped and Fulfilled quantity on the RMA line. From the above step, navigate in the Sales Orders window to the Line Items
tab for the RMA. Scroll to view the Shipped Quantity field.
To access the Fulfilled Quantity field, the user needs to use the folder technology to add the field to the sales orders window.
To add the field, click on the Warehouse field in the Shipping Tab of the Line Items window.
Next, select the Folder menu at the top of the window, select Show Field and choose the Quantity Fulfilled field from the list.
The field will populate in the window.
The Shipped Quantity means the received quantity for return lines and the Fulfilled Quantity means the delivered quantity for the return lines.
Workflow
In Oracle Order Management, you can have many types of credit order by specifying it's Order Type and Line Type.
Each order type and each line type is associated with an Oracle Workflow process.
You can customize order types and RMA line types to meet your business needs. For instance, you can use Approvals and Holds with returns
in order to manage exceptions when your customer returns more or less than you authorize.
Credit order types have order type category Return'.
An order with a Mixed order type category can contain both standard and return lines. But you cannot enter return lines into an order with
order type category Regular.
The following is an example of a seeded Order Return Flow process (ent er -> book -> approval notification -> close):
Order Flow - Return with Approval
The following is an example of a seeded Order Return Line Flow process (enter -> return-> invoice -> close):
Line Flow - Return for Credit with Receipt
The following are other workflow processes that Order Management seeds for Return
Line flows:
Line Flow - Return for Credit only
Line Flow - Return for Credit only with Approval
In Oracle Order Management, there are also flows that support both order and return lines (inbound and outbound transactions), however,
there are no seeded workflows for these flows. You can create flows that support both Order and Return Lines. For instance, the flow listed
below will not work correctly, since once a line is booked, workflow randomly picks which transition to process first. It then processes it all
the way till it can go no further. So for an outbound Line using this flow, if the branch 'Returns receiving' is first processed, it will get marked
as Not Eligible and hit the Fulfill -Defer activity and stop.
Then the WF Engine starts executing the other branch; the line will schedule and hit the Ship - Line, Manual sub-process, where it will stop
and wait to get picked and shipped. However the Background Engine could pick up the de ferred activity and execute the Fulfill activity.
This activity will error out since the fulfilling event for the order line Ship-Confirmation is not yet complete.
INCORRECT Line Flow - Supporting inbound and outbound shipments
For this flow to work correctly, the flow ensures that only one transition is executed (Order or Return).
The flow needs to be defined as follows:
CORRECT Line Flow - Supporting inbound and outbound shipments
After booking the line flow branches based on the Line Category ens uring that only one of the branches are (Order or Return) executed
runtime. The activity Utility to get Line Category is seeded OM: Order Line Work Item.
With regard to item inspections, the Order Management system does not process inspection results, and only processes delivery transactions.
Based on the users business rules, if an item is rejected, the user can either deliver to inventory (scrap sub -inventory) or return to the
customer. Delivering to inventory will give credit to the customer.
Returning to the customer will reduce the shipped quantity and credit will be given for only accepted goods.
Therefore, receiving transactions drive the flow of the return and what gets credited.
Defining Credit Check Rules
Overview
Order Management credit check rules enable you to determine what credit checking criteria is used when determining credit exposure during
the credit checking process.
Order Management transaction types determine when credit checking actually occurs, and when used in conjunction with credit checking
rules, define your credit checking process.
For example, you can define credit checking rules that utilize pre-calculated exposure information to use when comparing a customer's
current order amount against their overall exposure; if the order transaction type utilizes this rule, and the order fails during the credit check
process, it is automatically placed on credit check hold.
You can define as many credit checking rules as you need, and if you inactivate a credit checking rule, you also must r emove it from any
order types that use it.
Additionally, you can include in or exclude from your credit check rule some or all of your open accounts receivable balances , and some or
all of your uninvoiced orders.
Order Management uses the currency of the order you are credit checking to determine which credit limits to use in credit checking
calculations.
Order Management only includes orders and invoices in the same currency as the order you are credit checking when calculating a customer's
outstanding credit balance, unless you have set up multiple currency credit checking.
You can also include/exclude returns based on your credit check rule definition.
However this should be used only if you are using return lines with credit memos.
Besides defining your credit exposure composition, the credit check rule also determines:
• Credit check level (order or line)
• Credit Hold level (order or line)
• Conversion type used when you enable multi-currency credit check
• Use of item category credit check
• Send hold notifications to the sales order creator
• Use of pre-calculated exposure
Performance Note
In order to improve performance you can enable the use of pre-calculated exposure.
Utilizing this option, the credit check engine will use summary balance details stored in a periodically updated summary table.
The update is done by running a concurrent program which accesses Order Management and Account Receivable transactional tables.
This program should be scheduled to run periodically based on your specific business needs.
You should also run this concurrent program when you have done major changes in your set up or transactional data (merge customers,
incorporate transactions from external systems, change transaction status using customized programs, etc.).
Exposure Tab
11. Select the Use Pre-calculated Exposure check box for your credit rule if you wish to perform credit checking against pre-calculated
exposure summary tables.
• When the first credit check rule that has the Use Pre-Calculated Exposure check box checked is successfully saved, the following message
will display:
This credit check rule uses pre-calculated exposure. Please run the Initialize Credit Summaries program to update the pre-calculated data.
• If the Use Pre-calculated Exposure check box is checked and the Include Open Receivables balance check box is checked, then Open
Receivables Days is protected against update and is NULL.
• If the Use Pre-calculated Exposure check box is checked and the Include Uninvoiced Orders check box is checked, then Shipping Horizon
Days is protected against update and is NULL.
12. Select the Include External Credit Exposure check box if you wish to include external exposure details imported into Order Management
during the credit checking process.
When an Oracle Order Management sales order is credit checked, the exposure data from the external system is included in the overall
exposure check.
The default value for this check box is un-checked (exclude external exposure details when performing credit checking).
Receivables Balance Region
13. Select the Open Receivables Balance check box for your credit rule if you wish to include open receivables balances.
You must enable either the Include Open Receivables Balance check box or the Include
Uninvoiced Orders check box in your credit check rule.
You can activate both, but you cannot toggle both off.
If you select both the Pre-calculated Exposure and Open Receivables Balance check boxes, you are unable to specify Open Receivables Days.
14. If you enabled Include Open Receivables Balance in your credit check rule, you can indicate whether to Include Payments at Risk when
calculating a customer's outstanding balance.
Receipts at risk are remitted receipts that have not been cleared, or discounted (factored) receipts that have not been risk eliminated.
If the performance of credit checking requires improvement you can toggle off this option.
15. If you enabled Include Open Receivables Balance, enter a value to indicate the range of dates for open receivables you wish to include for
your credit check rule.
• Negative Number: Includes past due, current, and future open receivables up to X days beyond the current date
• Positive Number: Includes open receivables with invoice dates X days earlier than the current date
• No Value: Includes all open receivables
Uninvoiced Orders Region
Note: If you do not select the Include Uninvoiced Orders check box, you cannot select any check boxes within the region.
Important: If an order line has been interfaced to the Receivables interface table but hasn't been invoiced yet, the Order Management
credit check engine will include this line amount as part of the uninvoiced order amount. If your system enables credit ch ecking and your
Receivables Interface table can potentially contain large volume of data, it is recommended that you create a custom index on
RA_INTERFACE_LINES_ALL table ORIG_SYSTEM_ BILL_ CUSTOM ER_ID column.
16. Select the Include Uninvoiced Orders check box if you wish to include uninvoiced orders for your credit rule.
If you enabled Include Uninvoiced Orders:
• Indicate whether to include Freight and Special Charges for uninvoiced orders when performing credit checking.
Select the Freight and Special charges check box to include Freight and Special Charges.
• Indicate whether to include Tax information for uninvoiced orders when performing credit checking Select the Tax check box to include
Tax information for uninvoiced orders.
Credit checking calculations on open receivables always include tax amounts and are not affected by the Include Tax option. If the
performance of credit checking requires improvement you can toggle off this option.
• Indicate the number of scheduled shipping horizon days for your credit rule for uninvoiced orders to be included in your total credit
exposure when performing credit checking.
For example, if you enter 45, the total exposure includes only uninvoiced orders scheduled to ship within 45 days of the current date.
Orders scheduled to ship after 45 days are not included when calculating exposure.
Note: If the Use Pre-calculated Exposure check box is checked, Scheduled Shipping Horizon Days is protected against update.
• Indicate whether to Include Orders Currently On hold. Select the Include Orders Currently On hold check box to include orders on hold
within the exposure calculation for your credit rule.
17. Indicate the Maximum Days Past Due.
The Maximum Days Past Due field value specifies the number of day that you will allow an invoice to be past due before holding the
customers orders. During the credit checking process, Order Management will verify that no invoices for the customer have been past due
beyond the number of days you specified with this field. If there are any such past due invoices, the order is placed on credit hold.
18. Save your work.
Deactivating Credit Checking
There are three ways to deactivate Credit Checking on an order:
• Use an order type that does not have an assigned credit rule
• Define the Customer Profile so that the Credit Check box is not selected
• Use payment terms for which the Credit Check box is not selected Deactivating Credit Checking does not automatically release orders
previously on credit hold. However, the next time you attempt to Boo k, Pick Release or Purchase Release (for drop shipments), Pack, or Ship
Confirm an order which utilizes a Order Management Transaction type that enables credit checking to occur at the specified order points, or
you perform an order change that trigger credit checking in the Sales Orders window, Order Management will releases the credit check hold
if the order or line meets the requirements for successful credit check.
Practice - Defining Credit Check and Hold
Overview
In this practice you will learn how to create a credit check rule in Oracle Order Management
Tasks
4. Create a credit check rule named Booking.
Choose Responsibility
Order Management Super User, Vision Operations (USA) Responsibility is selected.
(N) Order Management > Setup > Credit > Define Credit Check Rule
2. Use the list of values to select Sales Order in the Credit Check Level field.
3. Use the list of values to select Sales Order in the Credit Hold Level field.
4. Use the list of values to select Corporate in the Conversion Type field.
Include Tax
Include Returns
6. Save.
28. Click your company name in the Name column. (SH-Big City)
29. Within the Accounts tab, click the View Details icon in the Details column.
OM Concurrent Programs
Initialize Credit Summaries Table7
Tasks
Create an order to cash lifecycle
1. Create an order.
Sales Orders: Update Acceptance Attributes – This allows for updating the acceptance attributes of
Acceptance Name and Acceptance Expire days.
Note: These are attached to the sales order menu – ADS_OM_SUPERMENU.
3. Change your responsibility to Revenue Management Super User Vision Operations USA.
Days Added to Event Attribute: any number that you want the removal event to occur
Condition: IN
Case Sensitive: No
10. You can add one or more parameters for the assignment rule. Click (B) Apply.
Using Pre-Billing Implicit Customer Acceptance
11. Change responsibility to Order Management Super User, Vision Operations USA
12. Enable the Acceptance-related fields using folder functionality on the sales orders line in the Others tab:
Acceptance Date
Acceptance Type
Accepted By
Accepted Qty
Acceptance Description
13. Open a default folder, include the above fields in the Others tab using the Show Field option. Checke the Make as
Default box and Use Folder > Save As giving the folder name as XX-Line-Cust-Accept.
14. The concurrent request set Implicit Acceptance Request set will run for recording implicit acceptance and updating the
above fields.
Item: AS54888
Qty: 2
20. Use AutoInvoice to invoice the order. (N) Receivables > Interface > AutoInvoice.
Note: If you require to perform an explicit acceptance, use Actions > Fulfillment Acceptance to open the Order
Information Portal page and record your acceptance details.
Overview of Internal Requisitions
Internal requisitions provide the mechanism for requesting and transferring material from inventory to other inventory or exp ense
locations. When Purchasing, Order Management, Shipping Execution, and Inventory are installed , they combine to give you a flexible
solution for your inter-organization and intra-organization requests. You should be able to:
• Set up your supply chain and automatically source your req uirements from inventory or suppliers
• Define your inter-organization shipping network, and optionally require that you use internal orders for your inter-organization transfers
• Use intransit inventory when you want to track items as they move between o rganizations
• Reduce warehousing, shipping, and handling costs by requesting items in fixed lot sizes
• Use the same windows for data entry and inquiry that you use for purchase requisitions and sales orders
• Take advantage of standard requisition and sales order functionality to suit your individual business requirements
• Automatically generate inventory replenishment requisitions and fulfill them via internal or external suppliers
• Automatically source MRP generated requisitions to internal or external suppliers
• View the status of requests online
• Use internal requisitions to move inventory items from one inventory organization to another, even if that organization belongs to a
different operating unit, legal entity, or ledger
Major Features
Complete Item Sourcing Definition
Purchasing and Inventory combine to provide the flexibility you need to define your item sourcing information.
You can use the default sourcing options to automatically determine the correct source type and source for your reques ts.
You can specify either Inventory or Supplier as the default source type, as well as the source organization and subinventory for internal
requests.
Inter-Organization Shipping Network
Inventory provides the features you need to define your inter-organization shipping network.
For transfers between two organizations, you can specify whether to use intransit or direct shipments.
You can also require internal orders for transfers between specific organizations.
Flexible Processing
You can tailor internal requisition processing to fit your requirements. You can limit online interaction by setting up background process es
to automatically perform specific actions such as creating inventory replenishment requests and creating internal sales order s in Order
Management. Or, you can take advantage of other features such as online requisition approvals, internal sales order cycles, a nd online
receipt and delivery of internally requested items.
Creating Online Requisitions
You can create online internal requisitions for both expense and inventory destinations using the same windows you use to create purchase
requisitions.
You can combine inventory and supplier sourced requisition lines on the same requisition.
Also, Purchasing uses your item sourcing information to default the correct source type and supplier for the item and destination. You can
define requisition templates for commonly requested internally sourced items.
Full Unit of Issue Enforcement
Purchasing offers the option of full unit of issue enforcement in which quantities entered on internal requisitions are automatically rounded
to a full unit of issue defined for the item.
You can also set this option to recommend a rounded quantity on requisitions, but leave the opportunity to change the re commended
quantity.
The quantity rounding is based on the specified unit of issue, if available, otherwise on the primary unit of measure.
Inventory Replenishment Requisitions
Inventory generates replenishment requisitions through min -max planning, reorder point planning, subinventory replenishment for
replenishment counts, and Kanban replenishment. Purchasing uses your item sourcing information to create inter-organization or
subinventory transfer requests.
See: Overview of Inventory Planning and Replenishment, Oracle Inventory User's Guide.
See: Demand for Internal Requisitions, page 3-16.
R12: What Are The Steps Required To Setup An Internal Requisition In Purchasing? (Doc ID 1384716.1)
Goal
Solution
Step 1 - Creating the Item
Step 2 - Creating the Shipping Network
Step 3 - Create the Internal Location
Step 4 - Conduct a Miscellanies Transaction (Receipt)
Step 5 - Create the Internal Customer - Assign the Location
Step 6 - Item Price Information
Step 7 - Creating the Requisition (PO Requisition Approval, Main Requisition Approval, PO Create
Documents, Overall Document Creation/Launch Approval)
Step 8 - Submitting the Create Internal Orders Concurrent Request
Step 9 - Import the Internal Sales Order
Step 10 - Execute Pick Release/Ship Confirm
Step 11 - Conduct the Receipt in the Destination Organization
Step 12 - Confirm the Quantity is Delivered
SOLUTION
Test case Scenario : The following setups will demonstrate the flow of an Internal Requisition between two inventory organizations.
M1 - Seattle Manufacturing will represent the destination organization
M2 - Boston Manufacturing will represent the source organization
In this example, the item will be procured internally from the M2 - Boston Manufacturing inventory organization
The following responsibilities are utilized in this example:
Purchasing Super User (or equivalent)
Order Management Super User, Vision Operations (USA)
Inventory
Step 1 - Creating the Item
Purchasing Super User - Navigation: Items/Master Items
Enter the Item Name
Ensure it is Purchased and Purchasable
Assign the item to the inventory organizations which are involved in the Internal Requisitioning process.
M1 will be the destination inventory organization and M2 will be the Source Inventory Organization.
Step 2 - Creating the Shipping Network
Inventory: Navigation: Setup/Organizations/Shipping Networks
Enter the Inventory Organization that will be the Source and the scope should be From or To Organizations
Choose the Transfer Type:
Direct - means that when the Internal Sales Order is shipped the receipt process in the destination organization 1. is done automatica lly
2. Intransit - means that when the Internal Sales Order is shipped - the destination inventory organization has to manually do the
receiving process in Purchasing
Choose Internal Order Required checkbox - Save
In this example, the setups are being done to allow the us er to Enter a Receipt in SH1 after the item has been shipped from SH2 (Intransit).
Please Note - If the Source and Destination Inventory Organizations are the same, then this step is conditionally not required. (Essentially the
Item is being transferred between subinventories in the same Inventory Organization).
Step 3 - Create the Internal Location
Purchasing Super User: Setup/Organizations/Locations
Choose the Other Details tab, enter the Inventory Organization for the Destination Organization.
The location created will be used to tie the Destination Location in the requisition form to the In ternal Customer to be used on the Sales Order
form.
Purchasing does not allow the entry of a Customer - therefore it passes the location to Order Management.
During Order Import in Order Management - the system locates the Customer Record to which the Location is assigned. Associating the
location to the customer record will be done in the later steps.
A web based form will open, choose the Create button in the lower left.
Enter the Customer Name - in the Organization Name field.
Choose the Profile Class that applies to the customer. Ex. Excellent.
Scroll further down and enter the Address details for the Internal Customer.
Move to the bottom of the form and under Business Purposes - Choose Add Another Row.
Set the purpose for the new row as 'Ship To'
Choose the Save and Add Details
Move to the bottom of the page, and the address should be visible.
Choose the Details icon
The Account Site Information will appear, select the Business Purposes tab
The Ship To and Bill To should now be visible.
Select the Details icon to the right of the Ship To
Under the Order Management section, there is a field 'Internal Location'
Enter the Location that was created in Step 3 (Ex. M1-Internal Location)
Apply and save the record
PLEASE NOTE: The Customer must be created in the Operating Unit of the Source Inventory Organization that is used on the Internal
Requisition. You can check the Operating Unit for the Source Inventory Organization by using the following sql:
Pass in the Source Inventory Organization Code - and then ensure the Customer is created in the Operating Unit for the Source Inventory
Organization.
Step 6 - Item Price Informati on
Purchasing Super User: Items/Master Items The price used on the requisition comes from the it em costs section.
Query back the item Choose from the top text menu - Tools/Item Costs
The screen to follow shows the item price that is used when creating the Internal Requisition. This is how purchasing derives the price when
creating the Internal Requis ition. It uses the price for the Cost - in the Source Inventory Organization. Whatever the price is in the Source
Inventory Organization used on the requisition - the price is derived. The reason is that the Sales Order is being created in the Source
Organization, so the price in the Source Organization must be used.
Step 7 - Creating the Requisition
Purchasing Super User: Navigation - Requisitions/Requisitions
In the Order Type Field - change the Order Type to Internal Click into the Lines Region on the Item field
At this point - look to the Destination fields - this information is fetched from the Employee Record
If the Destination Inventory Organization is not proper - move to that field and change it
If the Location is not the internal location - move to that field and change it to the new Internal Location Approve the requisition.
Question: Why is the Following Error message encountered : 'Destination location requires customer association.'
The reason for this error is that the code is trying to match the Location that is currently entered on the form to a
customer, and the customer association is not found. This was done earlier in step 5. The solution to this error is to
setup the employee record to default a location that was associated with a customer (as in step 5 above) or prior to
entering the item, move to the destination section of the form and enter an inventory organization and location that is
properly assigned to a customer, followed with entry of the item.
Question: Why is the Source Inventory Organization Not showing the inventory organization which was setup in the shipping
networks?
If the internal requisition is going to be for a cross operating unit scenario - then it should be noted that the HR: Security Profile is used.
Both operating units for which the inventory organizations belong too must exist in the HR: Security Profile.
To confirm the operating units for the inventory organizations - this sql can be used:
One of the fields that is inserted is the location_id - and because Order Management uses Customers rather than locations - this is why it is
mandatory to assign the Internal Location to the Customer. The location that is passed from purchasin g is correlated to a customer so as to
allow the Order Import to run successfully.
Please note that the calculate_price_flag is inserted as N into the Ord er Management interface tables.
This means that Purchasing is going to pass the price and it will not be impacted or recalculated when imported into Order Management.
This is proper functionality. We are currently tracking on Enhancement Request Bug 3095239 that would allow the use of an Int ernal Price
List.
The following sql can be used to review the data in the oe_iface tables.
SELECT *
FROM OE_HEADERS_IFACE_A LL
WHERE order_source_id = 10
AND orig_sys_document_ref IN
(SELECT REQUISITION_HEADER_ID
FROM PO_REQUISITION_ HEADERS_ALL
WHERE segment1 = '&requisition_number');
SELECT *
FROM OE_LINES_ IFACE_ALL
WHERE order_source_id = 10
AND orig_sys_document_ref IN
(SELECT REQUISITION_HEADER_ID
FROM PO_REQUISITION_ HEADERS_ALL
WHERE segment1 = '&requisition_number');
Pass in the requisition number when prompted.
Question: How can the interface data for Internal Requisitions be viewed in the Order Management Module?
This is possible using the Order Management Responsibility - and navigating to Orders>Import Orders>Corrections
Choose an order type of Internal In Order Reference use the List of Values to locate the Requisition Number
If the Requisition is not located - it has either been created into a Sales Order or not inserted into the tables by the Create Internal Orders
program The records are viewable at this stage and can be deleted.
PLEASE NOTE - if records are going to be deleted, it is necessary to Delete the Lines first and then the header
Be sure to choose Lines first - and then choose the delete icon from the toolbar - then delete the header
Deletion of the header record will NOT delete the line - it is not a cascade delete option. If the header is deleted prior to the line - it is not
possible to ever again locate the line in this form - sqlplus will have to be used to remove the line.
Enhancement Bug 4966920 has been created to improve this form and add the cascade delete functionality and now is implemented with the
following
Patch 13702362 - AFTER HEADER IS DELETED, ORPHAN DATA IS LEAVED IN SALES ORDER INTERFACE TABLES>>
Question: How can the Internal Requisition be resubmitted to the Order Management interface tables?
In the po_requisition_headers_all and po_requisition_lines_all table there is a column 'transferred_to_o e_flag'.
Setting this column to a value of 'N' followed with a run of the
Create Internal Orders process will again post the requis ition data into the Order Management interface tables. There are currently no options
available through the Oracle Purchasing forms that allow the updating of this flag, so sqlplus would have to be used.
Question (Problem):
When Running the Create Internal Sales Order Process - it completes with Success
But no records are inserted into the Order Management Interface Tables?
When the internal requisition is created the code needs to validate that the customer was created in t he Operating Unit that the Source
Inventory Organization belongs too.
When the Create Internal Sales Order process runs, if the Deliver to Location is not tied to a Customer Ship To Site in the O perating Unit of
the Source Inventory Organization used on the requisition - then it will not insert data into the oe_headers_iface and oe_lines_iface table.
Please review the previous step 5 and use the sql given to ensure that the Customer was created in the Operating Unit that be longs to the
Source Inventory Organization. For
this example, it would be required to check the Purchasing Options for the Operating Unit which M2 is belonging too.
Question: Does the Purchasing Create Internal Orders process pass flexfield values from the Purchase Requisition?
Currently, the Create Internal Orders process does not pass any values from flexfields. If there are mandatory/required flexfields setup on the
Order Lines table in Order Management, a value will have to be defaulted as a default value from some other method in order for the import
process to complete successfully.
Step 9 - Import the Internal Sales Order
Order Management Super User: Navigation: Orders ,Returns/Import Orders/Order Import Request
Enter these values:
Operating Unit - Operating Unit of the Source Inventory Organization (Ex. M2)
Order Source - Internal (or the order type being used
Order Reference - Requisition Number
Submit the request. Confirm that it completes.
Navigating to Orders, Returns/Order Organizer
Enter the requisition number in the Find form
Confirm that the Internal Sales Order was created from the import
Question: Can the price be updated adjusted during the Order Import?
The calculate price flag is frozen and the price cannot be changed. This is b ased on the values inserted by the Create Internal Orders process
from Purchasing.
Question: Where is the schedule Ship Date coming from?
The scheduled ship date is passed from the requisition Need By Date, it cannot be defaulted any differently.
Question: How is the Order Type being chosen?
This is coming from the Purchasing Options - Responsibility Purchasing Super User - Setup/Organizations/Purchasing Options.
The following queries can be used to confirm that the Internal Sales Order was created.
SELECT *
FROM OE_ORDER_HEA DERS_ALL
WHERE order_source_id = 10
AND orig_sys_document_ref IN
(SELECT REQUISITION_HEADER_ID
FROM PO_REQUISITION_ HEADERS_ALL
WHERE segment1 = '&requisition_number');
SELECT *
FROM OE_ORDER_ LINES_A LL
WHERE order_source_id = 10
AND orig_sys_document_ref IN
(SELECT REQUISITION_HEADER_ID
FROM PO_REQUISITION_ HEADERS_ALL
WHERE segment1 = '&requisition_number');
Pass the requisition number into the script when prompted.
Step 10 - Execute Pick Release/Ship Confirm
Set Shipping Role For User
Order Management Super User: Shipping/Transactions
Enter the field - From Order Number - give the Internal Sales Order
Choose Find
Requiring the record shows that the Next Step is to Run Interfaces.
This represents running the Interface Trip Stop process.
In this example, the Interface Trip Stop ran automatically.
Navigation: Shipping/Interfaces/Run - Interface Trip Stop If required, run the Interface Trip Stop process for the Trip that was created.
Confirm that it completes with success.
The shipping process in M2 will also automatically create the receipt in M1 - if the Shipping Network was setup to have a transfer
type of Direct. For this example, Intransit was used to as to be able to demonstrate the receiving process.
Step 11 - Conduct the Receipt in the Destination Organization
Purchasing Super User: Receiving/Receipts
Upon entering the Receiving form, search based on the requisition number.
Select the line for Receipt - and save the record. The Receiving Transaction Processor will be engaged and the item will be transacted into the
M1 - Destination Inventory
Organization.
Navigating to Receiving/Receiving Transactions Summary - it is possible to search on the requisition and view the completed Receiving
Transactions.
Step 12 - Confirm the Quantity is Delivered
Purchasing Super User: Requisitions/Requisition Summary
Querying the requisition lines, it is possible to view the quantity delivered - giving confirmation that the Sales Order was shipped from the
source inventory organization (M2) and receipted into the destination inventory organization (M1).
Additional Scenario
Line Flow - Generic, Bill Only
The Line Flow - Generic, Bill Only process is a workflow process is used for order lines that do not require shipping.
The Line Flow - Generic, Bill Only process is used in a situation when only a bill for the order must be generated.
The process contains several subprocesses to ensure that the order line is properly entered, invoiced, fulfilled, and closed.
When you save an order line in Oracle Order Management, the Line Flow - Generic, Bill Only process verifies that the order is booked before
proceeding. Once booking is verified, the process continues with invoicing, fulfillment, and closing.
Several of these actions are performed in the following workflow subprocesses contained in Line Flow - Generic, Bill Only:
• Enter - Line
• Invoice Interface
• Close - Line
Line Flow - Generic, Bill Only ends once the line is successfully closed. The only process is contained in the Seeded Data File oexwford.wft,
page 1-6 and is associated with the OM Order Line, page 6-6 item type.
Summary of the Line Flow - Generic, Bill Only Process
To view the properties of the Line Flow - Generic, Bill Only process, select the process in the navigator tree and then select Properties from
the Edit menu. This process is runnable, which indicates that it can be assigned to a transaction type.
The Details property page of the process activity indicates that the Line Flow - Generic, Bill Only process has an error item type of
WFERROR. This item type is associated with the RETRY_ONLY error process. The purpose of this error handling process is to alert an
administrator when an error occurs in a process and prompt the administrator to retry the process in error.
This error process is initiated only when an unexpected error with Oracle Workflow is encountered in the process.
When you display the Process window for the Line Flow - Generic, Bill Only, you see that the process consists of 2 unique
activities and 3 subprocesses, which comprise the 5 nodes that appear in the workflow diagram.
The following diagram depicts the Line Flow - Generic, Bill Only process.
Each node of this process is numbered for referencing.
Line Flow - Generic, Bill Only Workflow
The Line Flow - Generic, Bill Only workflow begins at node 1 with the Enter - Line,
page 5-39 subprocess.
This subprocess verifies that the order is booked before proceeding with the remainder of the workflow.
The process attempts to fulfill the order at node 2. At node 3, the Invoice Interface - Line, Deferred, subprocess is initiated.
This subprocess moves the invoice interface to the background engine. The process initiates the Close - Line, subprocess at node 4. After the
line is successfully closed, the process ends at node 5.
Line Flow - Generic, Bill Only Activities
The following table provides descriptions of each activity in the Line Flow - Generic, Bill Only process.
For more information about individual activities, refer to Seeded Function Activity Definitions, page 6-1.
Line Flow - Generic, Bill Only Activities
Activity Function Result Type Required
Fulfill OE_FULFILL_WF.ST
ART_FULFILLM ENT
None Yes
Seeded Workflow Definitions 4-35
Activity Function Result Type Required
End WF_STANDARD.NO
OP
None Yes