Oracle Order processing functions and Order to cash cycle flow | Class – 3

 Oracle  ; Order Management; The Basics Of Order Processing Business flow and Order to Cash cycle

The process begins in the upper right corner of the slide. A Customer Order is entered either manually or through automated process. The fields which you see in the opening form is Sales order Information are Sales Order Number, Customer Name, Bill to, and Ship to address. Date, Price-list for which the item is to be Delivered, Destination, Sales order status and Currency and Taxes applied. In the line tab you have item, price, quantity ordered, and price list.

Activity wise status of Sales Order Execution in Sales Order Form

             Activity         Order Execution         Shipping Execution
         Order Entry              Entered               No status
        Order Booking        Awaiting Shipping          Ready to Release
           Picking             Picked       Release to warehouse
         Pick Confirm             Picked       Stage+ Pick Confirm
         Ship Confirm            Shipped            Shipped
 ITS Program (Interface trip stop)            Closed (Not a status)           Interfaced
        AR Interface            No Status           No Status
       Auto Invoice            No Status           No Status

 

The above related information is based on the Activity performed, Order executed, and Shipping Execution. It mentions the Order Status, and the changes done during the process of shipping execution. Depending upon the item listed on the order, the next step could be the subset or the combination of scheduling the items, Building the items and finally picking and shipping these items to customer destination. Once the items are shipped the information is forwarded to Oracle Inventory and Order Receivables .Oracle Inventory and Oracle Receivables send the accounting information to General Ledger.

The purpose of Order Management is to manage order to cash cycle allowing to process high transaction volumes and to manage shipment Process. Oracle Order Management has highly multi window graphical user interface (GUI) with full point and click availability.

Oracle Order Management is a subject matter of two basic functions:

  1. Entering the sales order
  2. Managing shipments against sales order

 

The purpose of a Order Management system is to efficiently manage sales orders and shipment process to help and achieve contribution for higher revenues and enhanced customer satisfaction. The Order Management software typically captures information on account level information, credit verification, or payment processing is done to check the validity and availability of funds. Once entered valid orders are processed for warehouse fulfillment, such as

Picking packing and shipping.

STEPS INVOLVED IN ORDER TO CASH CYCLE

  1. Enter the sales Order
  2. Book the sales order
  3. Launch Pick Release
  4. Ship Confirm
  5. Auto Invoice
  6. Transfer to Journal Ledger.

 

Various Types of Order in Order Management Cycle

  1. Standard Order
  2. Back to Back Order
  3. RMA (Return Material Authorization)
  4. IRISO(Internal Requistion and Internal Sales Order)
  5. Drop-ship
  6. ATO –Assemble to Order
  7. PTO-Pick to Order
  8. CTO- Configure to Order

 

The above shown Orders are important type of sales orders while there are more customized orders which are made to function. These sales order process serves various function in order management.

 

Steps Involved for Order Processing

  1. Order Entry and Transfer: Any kind of order centralized administration control and monitoring of all the orders like online orders, Direct Orders.
  2. Order Qualification and Screening: Ensure that the sales order is entered correctly i.e. i)Correct product Id ii)Export License iii)Order Data iv)Delivery back from customer
  3. Fulfillment Planning & Checking: 360 Degree Evaluation of your supply capacity, fulfillment Planning included.
  4. Evaluation & Billing: Determine accuracy and value of Orders and bill them.

Some of the common customization in Order Management:

  • Workflows
  • Alerts
  • Reports
  • Interfaces
  • Forms Personalization
  • Customer forms/Tables


Click here for more Oracle Classes

Click here for more Trending Jobs


If you have questions, please ask below

Leave a Reply

If you have any questions headover to our forums

You can use these XHTML tags: <a href="" title=""> <abbr title=""> <acronym title=""> <blockquote cite=""> <code> <em> <strong>