Oracle E Business Suite- Understanding Some Order Management Functionalities Class/28

Back Ordered: An item is set to be backordered when the lines associated with sales order have not sufficient quantity to fulfill the requirement of the customer. The line status will show the backordered. There is another probability for lines to be backordered if there is sufficient quantity in the inventory but the price of particular item is not furnished with the item so the item is also backordered.

Inventory Days: The days within which the goods remain in inventory before being sold to customer is called inventory days. As a number above norm indicates problem with sales forecast and a number below the norm indicates the loss of sale due to the inability to fulfill demand.

Kitting:  It is the process where components items are stocked, assembled, and supplied altogether as one unit. For example the supply of computer assembly of monitor, mouse, keyboard, and make computer to sale in the market on MRP is known as Kitting.

Stock-out: A stock out is a system in which demand or requirement of a particular item cannot be fulfilled from the current inventory.

Inventory cost: The cost of holding a stock which deals with Warehousing, Stocking, insurance and shrinkage cost is known as inventory cost.

Payment terms: Payment terms are the terms where the seller sells the product while confirming cash on delivery, Cash in advance, or on credit. The items are sold according to the demand of the customer associated with the sales order.

Ex works: All the charges such as delivery, distribution, and commission are to be charged by the buyer. It includes the goods which are directly supplied to destination from the plant.

Letter of Credit: A letter of credit is the document which guarantees the payment of specified goods against the sum issued by the bank and negotiates the credit.

Terms of Sale: The terms of sale is the mutual agreement between the buyer and the seller for the transportation of goods from one place to another is known as term of sale.

Pro-forma Invoice: Proforma Invoice is the estimated invoice which is being valued for the good being sold which includes the description of goods like weight, quantity, price, and the destination required for delivery of goods. It is a form of preliminary invoice in-turn of actual invoice.

Commercial Invoice: It’s an invoice which has true value of the goods which includes date and term of sale, quantity, weight, volume, shipment and type of packaging and a completed description of goods is known as commercial invoice.

Bills Of Lading:  Bills of lading is the document that contains the Consignor, Consignee name, dates of departure and arrival of goods, and the name and number of the vessel.

 

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