Oracle E business suite Order Management – Class 15

Order Management

1. Client operates in a retail shop environment where most of the goods sold are to the walk-in customers and wants to use Oracle Order Management. What are the configurations to be done to support such businesses where quick order entry, entering existing or new customers with ease, no elaborate picking and shipping process is required?

Workflow of type ‘Bill and Ship only’ depending on client’s requirement. Quick Sales order form can be used to facilitate order details entry. Generic customer can be defined to account for walk-in customers.

2. Whats the use of specifying alternate items in Order Management?

System facilitates order entry user to choose between items which are set as Alternates based on attributes such as ATP etc. Hence alternate items can be booked if original item is not available as per customer timelines.

3. Client requires a single delivery for all orders of a customer, what setups needs to be done for such a requirement?

In Shipping Parameter, set delivery grouping parameter to Customer and Auto create Delivery criteria as ‘Across Orders’.

4. What are Back-to-Back orders and what are the setups involved?

Back to Back orders are orders for which items booked in Sale order is not available in Inventory and system creates a purchase requisition and tracks the item through creation of Purchase order from the requisition and finally when PO receipt is made for the item, the receipt quantity is reserved against the sale order.

Setups include definition of item with attributes such as ‘Built in WIP’ and ‘Assemble to order’ set to Yes. Sourcing rule needs to be defined for the item and sourcing rule should be mapped to MRP: Assignment set.

5. What are ATO and PTO items?

ATO and PTO are types of Item which are used in OM and Configurator mainly.

ATO or Assemble to Order items are typically items that are built as per the customer’s requirement. Hence ATO model is entered in Sales order and end items are chosen from the configurator window. The workflow of the item creates a Discrete job and chosen item is built in WIP. Once the Discrete job is complete, the item is available in OM for picking and shipping.

PTO or Pick to order items are items which are picked from inventory based on customer requirements and then picked and shipped.

6. What are the typical reasons for a line to get backordered during Pick Release?

Primary reasons for line to be backordered are

1. Item is not available in inventory
2. Inventory period is closed
3. Holds are placed against the order or order line.

7. What is the purpose of Trips and Stops?

A trip is an instance of a specific freight carrier departing from a particular location containing deliveries. A trip is carrier specific and contains at least two stops such as a stop to pick up goods and another stop to drop off goods, and may include intermediate stops.

8. Client wants to ensure that a particular item when placed in a Sale order is not processed until Inspection happens and approval is given, how to setup such a requirement?

Create a Hold Source and specify Hold criteria as Item and criteria value as the item name.

9. How to setup Drop shipment cycle in OM?

Oracle Order Management and Oracle Purchasing integrate to provide Drop Shipments. Drop Shipments are orders for items that your supplier ships directly to the customer either because you don’t stock or currently don’t have the items in inventory, or because it’s more cost effective for the supplier to ship the item to the customer directly.

In the sale order, specify the Source type as External. Purchase Release program should be run and post this program, requisition import program should be run.

10. What is the purpose of Interface Trip Stop?

Interface Trip Stop creates the sales order issue transaction and thereby depletes the inventory to the sale order shipped quantity. As part of ITS, COGS account gets generated.

11. What is RMA and what are the scenarios when RMA cycle would be used?

If I have shipped an order via Order Management to a wrong customer or the wrong item/quantity has been shipped, then I will do an RMA transaction in Inventory to bring the item back. This will generate a credit memo in AR.

If the customer finds that item is faulty or defective, then he returns the shipment to us. In this case too, we will create an RMA in Inventory and receive the item back. This again creates a credit memo.

12. How to setup credit hold in Order Management?

Credit hold setups include setting up

Customer site level – Credit check must be enabled, Amount and currency must be specified
Payment term – Credit check must be enabled
Credit check rule – Credit check rule must be defined.
Order type – Credit check Rule must be mapped as required

13. How to setup quantity discounts in Price lists?

Quantity discounts are handled by specifying Price breaks by giving quantity and corresponding price applicable.

14. What is the purpose of scheduling a sale order?

Scheduling a sales order ensures that line is available for Picking and further transactions applicable. Also, Scheduling looks at sourcing rules to determine the source of the item specified in order line. Scheduling honors Promise date and Latest Acceptable date whichever is applicable as per setups.

15. What are processing constraints in OM?

Processing constraints ensure that user doesn’t violate any business process or system defined process by putting checks on various actions performed by user.

Typically actions such as cancelling orders are governed by processing constraints.

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