Data flow for Order-to-Cash cycle

Data flow for Order-to-Cash cycle

1. Order Entry
This is first stage, When the order is entered in the system, it creates a record in order headers and Order Lines table.
Enter header details: Once you enter details on the order header and sae it or moe it to lines, record goes to one table
oe!order!headers!all
o "o record e#ists in any other table for this order till now.
Enter Line details for this order: Enter different item numbers, $uantity and other details in line tab. When the record gets
saed, it goes to one table. Order header details will be lin%ed with line details by order &E'DE(!)D.
2. Order Booking
This is ne#t stage, when Order is boo%ed then the *low status changed from Entered to +oo%ed. 't this stage, these below table get
affected.
oe!order!headers!alL
oe!order!lines!all
wsh!deliery!details
wsh!deliery!assignments
,)n shi--ing transaction form order status remains .(eady to (elease/.
't the same time, Demand interface -rogram runs in bac%ground and insert into inentory tables mtl!demand.
3. Reservation
This ste- is re$uired for doing reserations 0C&ED1LE O(DE( 2(O3('4 runs in the bac%ground and $uantities are resered.
Once this -rogram get successfully get com-leted, the mtl!demand and mtl!reserations table get u-dated.
4. ick Release
2ic% (elease is the -rocess of -utting reseration on on-hand $uantity aailable in the inentory and -ic% them for -articular sales
order.
2ic% release can be done from 5(elease 0ales Order6 form or 52ic% release 0(06 -rogram can be scheduled in bac%ground. )n both of
these cases all lines of the order gets -ic% released de-ending on the 2ic%ing rule used. )f s-ecific line7s needs to be -ic% release it can
be done from 50hi--ing Transaction form. *or this case 2ic% (elease is done from 5(elease 0ales Order6 form with 2ic%
Confirm8"O.
Once -ic% release is done these are the tables get affected:
)f ste- 9 is not done then 4TL!(E0E(:'T)O"0 gets u-dated now.
wsh!new!delieries
wsh!deliery!assignments
wsh!deliery!details
4TL!T;"!(E<1E0T!&E'DE(0
4TL!T;"!(E<1E0T!L)"E0
4tl!material!transactions!tem-
4TL!0E()'L!"14+E(0!TE42
4TL!0E()'L!"14+E(0
,)n shi--ing transaction form order status remains .(eleased to Warehouse/ and all the material still remains in source sub-inentory.
We need to do 4oe Order Transaction for this order. Till this no material transaction has been -osted to
4TL!4'TE()'L!T('"0'CT)O"0
!. ick Confir"# $ove Order %ransaction
)tems are transferred from source sub-inentory to staging 0ub-inentory. &ere material transaction occurs.
Order line status becomes 52ic%ed6 on 0ales Order and 50taged72ic% Confirmed6 on 0hi--ing Transaction *orm.
4TL!4'TE()'L!T('"0'CT)O"0!TE42
oe!order!lines!all
4TL!4'TE()'L!T('"0'CT)O"0
mtl!transaction!accounts
wsh!deliery!details
wsh!deliery!assignments
4TL!O"&'"D!<1'"T)T)E0
4TL!0E()'L!"14+E(0!TE42
4TL!0E()'L!"14+E(0
, This ste- can be eliminated if we set 2ic% Confirm8=E0 at the time of 2ic% (elease
&. 'hi( Confir"
&ere shi- confirm interface -rogram runs in bac%ground. Data remoed from wsh!new!delieries.
The items on the deliery gets shi--ed to customer at this stage.
oe!order!lines!all
wsh!deliery!details
W0&!0E()'L!"14+E(0
mtl!transaction!interface
mtl!material!T('"0'CT)O"0
mtl!transaction!accounts
mtl!demand, 4TL!reserations
4TL!O"&'"D!<1'"T)T)E0
4TL!0E()'L!"14+E(0!TE42
4TL!0E()'L!"14+E(0
). Enter *nvoice
'fter shi--ing the order the order lines gets eligible to get transferred to ('!)"TE(*'CE!L)"E0!'LL. Wor%flow bac%ground
engine -ic%s those records and -ost it to ('!)"TE(*'CE!L)"E0!'LL. This is also called (eceiables interface, that mean
information moed to accounting area for inoicing details. )noicing wor%flow actiity transfers shi--ed item information to Oracle
(eceiables. 't the same time records also goes in the table ('!)"TE(*'CE!0'LE0C(ED)T0!'LL which hold details of sales
credit for the -articular order.
ra!interface!lines!all >interface table into which the data is transferred from order management? Then 'uto-inoice -rogram im-orts
data from this table which get affected into this stage are receiables base table. 't the same time records goes in ra!customer!tr#!all
and ra!customer!tr#!lines!all
+. Co"(lete ,ine
)n this stage order line leel table get u-dated with *low status and o-en flag.
oe!order!lines!all
-. Close Order
This is last ste- of Order 2rocessing. )n this stage only oe!order!lines!all table get u-dated. These are the table get affected in this
ste-.

oe!order!lines!all
oe!order!&E'DE(0!all
Back-to-Back Order Cycle *n Order $anage"ent

.ey B/siness Drivers
Lower inentory cycle time and cost
Lin% su--ly to s-ecific demand
Can offer a ariety of -roduct to customer
1sed heaily in contract manufacturing enironment where the -roduct is standardi@ed and the com-any -lans to focus more
on -roduct design rather than manufacturing.
A. Create a +B+ item :
o )n the Order 4anagement tab, chec% the 'ssemble to Order flag >'TO?.
o )n the 2urchasing tab, enter a alue in the List 2rice field >in this demo it is ACC?.
o )n the Wor% in 2rocess tab, ma%e sure the +uild in W)2 flag is chec%ed.
o )n the 3eneral 2lanning tab, set the 4a%e or +uy flag to +uy.
o 0ae, and assign to Organi@ation 4A
Note: the 'TO item attribute is chec%ed as the +B+ -rocess utili@es the 'TO -rocess of the wor%flow. &oweer, the item
is not manufactured in W)2, and instead is a D+uyD item that is re-lenished by a su--ly order in 2O. &ence the item may
also be called an 'TO +uy item
B. 'ssign the item to the -rice list
9. 4a%e sure the following -eriods are o-en:
A. )nentory 'ccounting 2eriods
B. 2urchasing 2eriods
9. 3L 2eriod
E. Create a sales order with Order Ty-e 4i#ed and enter the +B+ item in the lines for any $uantity.
Fee- 0ource Ty-e8)nternal. >)f it is E#ternal then it will be a Dro- 0hi- order?
G. +oo% the order. "ote down the Order "umber
The line status will moe to 0u--ly Eligible >flow!status!code 0122L=!EL)3)+LE?
H. 2lace cursor on the line and go to 'ctions I 2rogress Order. 0elect Create 0u--ly Order - Eligible to -rogress the wor%flow of
the line
The line status will now show 2O-(e$(e$uested >flow!status!code 2O!(E<!(E<1E0TED?
O4 has inserted a record in the 2O re$uisitions interface table.
Chec% reseration status: 3o to Tools I 0cheduling I (eseration Details I D0u--lyD tab. (ight now it is )nentory as
(e$uisition is not yet created.
J. 3o to 2urchasing I (e-orts I (un and run the concurrent -rogram (e$uisition )m-ort with the )m-ort 0ource -arameter 8
CTO >or blan%?. Leae the other -arameters as default. The concurrent -rogram can also be run from O4 I Orders, (eturns
I (e$uisition )m-ort
The line status of the sales order line will now show 2O-(e$Created >flow!status!code 2O!(E<!C(E'TED?
Chec% (eseration status: 3o to Tools I 0cheduling I (eseration Details I D0u--lyD tab. 's the re$uisition has created now
the su--ly for reseration changes
K. 3o to 2urchasing I (e$uisitions I (e$uisition 0ummary.
)n the *ind (e$uisitions window, enter re$uisition number found in the -reious ste- and clic% on *ind.
:erify that the status is '--roed (e$uisition must hae status '22(O:ED as we ran (e$. )m-ort with (e$uisition a--roal
initiation8 =es
L. 3o to 2urchasing I 'utocreate.
*rom Edit I Clear I (ecord, clear any $uery criteria that may be defaulted.
Enter re$uisition number and clic% *ind.
Chec% the chec%bo# to the left of the line, and clic% on 'utomatic.
Enter the 0u--lier and 0u--lier site such as the following and clic% on Create
AC. The 2urchase Order form will automatically o-en with the 2O that got created.
Clic% on the '--roe button.
Clic% on the OF button in the '--roal Documents window to a--roe the 2O.
"ote down the 2O number, and erify that the status is '--roed.
*or 4ore details also (efer: Re0/isition to ay Cycle
The line status of the sales order line will now show 2O-Created >flow!status!code 2O!C(E'TED?.
Chec% (eseration status: :erify that the order line is resered against the 2O.
AA. 3o to 2urchasing I (eceiing I (ecei-ts.
Enter 2urchase Order number and clic% on *ind.
)n the (ecei-ts window, chec% the chec%bo# to the left of the line and enter
A. Destination Ty-e : )nentory
B. 0ubinentory : *3)
9. 0ae the recei-t.
AB. 3o to 2urchasing I (eceiing I (eceiing Transactions 0ummary.
Enter the 2urchase Order number and clic% on *ind.
Clic% on the Transactions button.
:erify a (eceie and Deliery transaction. This means that the +B+ item has been receied into )nentory.
The line status of the sales order line will now show 'waiting 0hi--ing >flow!status!code 8 'W')T)"3!0&)22)"3?
Chec% (eseration status: 's the material is now in *3) sub-inentory, su--ly changes to )nentory.
Chec% 0hi--ing status of Order on shi--ing Transaction *orm.
A9. 2ic% (elease the 0ales Order
4a%e sure all the concurrent -rogram gets com-leted successfully.
Chec% 0hi--ing status of Order on shi--ing.
Chec% Line 0tatus on Order.
AE. "ow the Line is eligible for 0hi--ing 'ctiity. 0hi- the Order and erify the line status.
AG. 3o ahead with inoicing the Order Line7s.
AH. )n this case there will be two inoices.
A. One in '( which will be issues against 0ales Order
B. One in '2 which will be issued against 2urchase Order 7 (ecei-t.
Drop Shipment
Drop shipment enables to take order from customer and fulfill it directly from a supplier
Key Business Drivers
o Low inventory cost
o Reduced shipment time to customer
o Can offer a variety of product to customer
o Used heavily in contract manufacturing environment where the product is standardied and the company plans to
focus more on product design rather than manufacturing
!ntroduction to Drop Ship
Drop shipment is a method of order fulfillment where the organiation taking the order does
"#$ maintain their own inventory for the drop%shipped product& but fulfill their orders through
'rd party vendors who directly ship to the end customer ordering the product
(or )*ample+ ,C-Customer& .-#rganiation& S-Supplier/
o C orders item * from .
o . orders item * from S
o S ships !tem * to C
o S bills . for the order& . bills C for the order
o C pays . for the order& . pays S for the order
Drop Shipment
(unctionality #verview
#rder processing is managed using workflow
Links #rder .anagement and purchasing to provide visibility through entire supply chain
Drop ship functionality is based on source type of an order line ,!nternal0)*ternal/
1utomatic 2#0B21 release creation based on 1SL0sourcing rule information
Drop ship process uses standard #. workflows3 4old and approval steps can be added to order processing flow3
Use Sales order 2urchase order discrepancy report to identify discrepancies between the S# and the 2#
Drop Shipment "ew features in 55i
!nternal location relationships need not be maintained
Can drop ship kit& model and configured items e*cluding Ship model complete ,S.C/
o
6ithin a configuration items can be sourced from different suppliers
(ile attachment can be sent for 1$# configurations3 7endor can also view information using iSupplier portal
2erform a match and use e*isting configuration ids
!tem master attribute can be used to identify Drop ship items
User item description can be sent to 2urchasing
!mplementation Considerations
#rder line attribute+ Source $ype ,need to be e*ternal/3 Can be defaulted from item or order type
!tem attributes ,#. and 2urchasing/+ !tem should be 2urchasable& BU8 and 1$# unchecked3
Setup re9uisition import parameters
o
$ypically group by 7endor
.ultiple distributions set to "o
1SL and0or Sourcing rule relationship need to be setup for 1utomatic 2# creation
#racle recommends using a logical organiation for drop shipment3 )*clude this organiation for
planning purposes3 !t can be worked around using non nettable :Dropship; subinventory
Steps for Drop%ship order
53 Receive 2# from Customer3
<3 )nter Sales #rder against the 2# from customer with )=$)R"1L source type3
'3 Re9uisition will be generated and then 2# for fulfillment0s3
>3 $his 2# will be sent to suppler with ship%to address as customer;s address and Bill%to address as our address3
?3 Supplier ships material to customer directly and sends shipping details to us3
@3 Customer sends us acknowledgment of material received3
A3 Suppler sends us invoice against 2# sent by us
B3 Receipt will be done against 2# sent to suppler
o no change in on-hand quantity, even we do receipt
C3 Sales #rder gets fulfilled and we can send !nvoice to customer against the sales order3
Customer will pay against this receivables !nvoice3
Similarly generate !nvoice against the 2#0Receipt in 2ayables and pays
money to Supplier3
2rofit margin depends on price difference in these two invoices
Drop Shipment+ Limitations
Sales order changes need to be manually updated in 2# sourcing an item from multiple
supplier
.anagement of sales order holds and approvals
o
"eed to be managed manually after the 2# has been created
*nternal Re0/isitions
)nternal re$uisitions -roide the mechanism for re$uesting and transferring material from inentory to other inentory or e#-ense
locations. When 2urchasing, Order 4anagement, 0hi--ing E#ecution, and )nentory are installed, they combine to gie you a fle#ible
solution for your interMorgani@ation and intraMorgani@ation re$uests.
With )nternal re$uisition =ou can be able to:
1se internal re$uisitions to moe inentory items from one inentory organi@ation to another, een if that organi@ation belongs
to a different o-erating unit, legal entity, or set of boo%s
0et u- your su--ly chain and automatically source your re$uirements from inentory or su--liers : 2urchasing and )nentory
combine to -roide the fle#ibility you need to define your item sourcing information. =ou can use the default
sourcing o-tions to automatically determine the correct source ty-e and source for your re$uests. =ou can s-ecify either
)nentory or 0u--lier as the default source ty-e, as well as the source organi@ation and subinentory for internal re$uests.
Define your interMorgani@ation shi--ing networ%, and o-tionally re$uire that you use internal orders for your interM
organi@ation transfers : )nentory -roides the features you need to define your interMorgani@ation shi--ing networ%. *or
transfers between two organi@ations, you can s-ecify whether to use intransit or direct shi-ments. =ou can also re$uire internal
orders for transfers between s-ecific organi@ations.
1se intransit inentory when you want to trac% items as they moe between organi@ations
'utomatically generate inentory re-lenishment re$uisitions and fulfill them ia internal or e#ternal su--liers : )nentory
generates re-lenishment re$uisitions through minMma# -lanning, reorder -oint -lanning, subinentory re-lenishment for
re-lenishment counts, and Fanban re-lenishment. 2urchasing uses your item sourcing information to create interMorgani@ation
or subinentory transfer re$uests.
'utomatically source 4(2 generated re$uisitions to internal or e#ternal su--liers : 4(2 generated re$uisitions are sourced
using the same item sourcing information that you define for inentory re-lenishment and onMline re$uisitions. *or /buy/
items, the (e$uisition )m-ort -rocess uses the item sourcing information to create either a -urchase re$uisition or an
interMorgani@ation internal re$uisition for -lanned orders.
Creating Online (e$uisitions : =ou can create onMline internal re$uisitions for both e#-ense and inentory destinations using
the same windows you use to create -urchase re$uisitions. =ou can combine inentory and su--lier sourced re$uisition lines
on the same re$uisition. 'lso, 2urchasing uses your item sourcing information to default the correct source ty-e and su--lier
for the item and destination. =ou can define re$uisition tem-lates for commonly re$uested internally sourced items.
Baisc Order 1low
The Order flow of internal 0O is shown in below diagram.

$ini"/" 'et 2(s
4aterial moement from 4A>Destination-2O? to 4B>0ource-O4?
1. *te" 'et/(
"aigate to )nentory -I )tems -I 4aster )tems
a. '--ly the D2urchased )temD tem-late
b. )nternal Ordered )nternal Orders Enabled
c. 'ssignment in both orgs
2. Cost 'et /( 3$24
a. "aigate to )nentory -I Costs -I )tem Costs
Cost Element : 4aterial
0ub-Element : 4aterial
+asis : )tem
(ate or 'mount : B9
Cost Ty-e : 2ending
b. )nentory -I Costs -I 0tandard Cost 1-date -I 1-date Costs
(un the standard cost u-date and erify that a new line is added at item cost with fro@en cost.
3. 'hi((ing 5etwork 'et/(
:erify setu- for inter organi@ation 0hi--ing "etwor% between 4B and 4A
- "aigate to )nentory -I 0etu- -I Organi@ations -I 0hi--ing "etwor%s
Transfer Ty-e : )ntransit
*O+ : (ecei-t
(ecei-t (outing : Direct
)nternal Order (e$uired : chec%ed
4. Define *nter-,ocation %ransit %i"es 3o(tional for testflow4
- 3o to )nentory -I 0etu- -I Organi@ations -I )nter-Location Transit Times
- 3o to :iew -I *ind and enter
Origin Ty-e : Location
Origin : 4B- +oston
Destination Ty-e : Location
Destination : 4A- 0eattle
- Enter the 0hi- 4ethod and )ntransit Time such as :
0hi- 4ethod : 'irborne
)ntransit Time : G
Default 4ethod : chec%
!. 5eed to define c/sto"er location associations for 6oth so/rce and destination o(erating /nits
a. Org 4A needs to defined as a customer
Create a location which can be used as the shi- to location for customer 4A and enter this in shi- to to site )nterla location
b. Do the same location association for the other organi@ation by defining a new address >This setu- is re$uired if its across O170O+?
b. "o 0ales Credit in sales -erson.
&. 7erify the transaction ty(e and order so/rce >this is already done in :ision enironment?
a. Order Ty-e : "ew!)nternal!orderty-e in 4B
The internal sales order in O4 will be created with this order ty-e
Order 0ource : )nternal
The internal sales order will be im-orted into O4 with this order source
"ew!)nternal!orderty-e should hae 0hi--ing source ty-e as internal.
b. ' new document category is attached with the aboe order ty-e. 'ttach a document se$uence to it.
c. "aigate to 2urchasing -I 0etu- -I Organi@ations -I 2urchasing O-tions >4B?
- Clic% on the )nternal (e$uisitions tab
- "otice the Order Ty-e and Order 0ource setu-
*"(ortant oints
A. 'n )nternal Order does not generate an 'ccounts (eceiable inoice.
B. The -rice on the internal sales order line comes directly from the -rice on the re$uisition line. Order)m-ort does not use the -rice
list to recalculate the line -rice.
'lthough internal re$uisitions use the item6s cost as the -rice, Order 4anagement re$uires -rice lists to -rocess all sales orders. Define
a -rice list for use with the internal re$uisition order ty-e. =ou do not need to add any lines to the -rice list.
&oweer, the -rice that is used when -osting the intercom-any -ayables and receiables information is the item cost -lus any mar%u-
defined in the shi--ing networ%.
9. The -rocess that would do the accounting entries is also indicated M Cost -rocessor, )nter-Com-any )noicing, (eceiing -rocessor.
E. 'n )nternal Order is iew only, changes can only be made to 0hi--ing information.
G. 'n )nternal Order can only hae one schedule date, and cannot be s-lit into multi-le -artial $uantities7shi-ments.
H. 3etting error - '22-AK9JC )ncom-lete 0hi- 0et - when trying to 2ic% (elease order. 4a%e sure that the item setu- does not hae
the item set to 'TO.
J. The user creating a re$uisition attached as an em-loyee in &uman (esources.
*R#*'O 7s *nter-Org
)t is a -rocess used to re$uest and transfer material from one inentory to another with the 0ame or Different O-erating 1nit. This is
usually initiated in Oracle 2urchasing which creates a (e$uisition and u-on running the Create )nternal 0ales Order Concurrent
-rogram, the order is loaded into the Order )m-ort Tables. The Order )m-ort -rogram is run in the Order 4anagement of the
O-erating 1nit in which the Orders needs to be Created. The Order is then boo%ed and shi--ed and receied in the destination
organi@ation. The inoicing actiity de-ends on the com-any rules.
)nter Org Transfers are the material transfers within two Organi@ations that are under the same O-erating 1nit. There is no creation of
the sales orders or anything but a regular material transfer from one org to another. The item needs to be defined in both the
Organi@ations. This is usually done to maintain the inentory balances and there is no actual shi--ing -rocess that is defined for this.
8dvantages of *R#*' over *netr-org
'--roal - '--roal -rocess is -ossible in )0O but it is not -ossible in )nter-Org transfer.
Trac%ing.
2ic%-sli- - )nternal sales order has sales document >i.e -roforma inoice? where as inter org transfer is Nust transfer between
inentory orgs.
(4's for )( but no cancel in inetr-org.
)f you are moing seriali@ed items setu- with seriali@ation control D't 0ales Order )ssueD then )nternal (e$uisitions >)nternal
Orders? are best because the item serial numbers are u-dated on shi-ment and recei-t. )nter Org transfers are good to moe non
serial controlled items or items setu- with seriali@ation D't (ecei-tD.
*nternal Re0/isition 8((rovals
'fter you create an internal re$uisition, you can o-tionally re$uire a--roal. *or onMline re$uests, you can set u- a--roal rules that
are s-ecific for internal re$uisitions, or you can share the same rules you use for -urchase re$uisitions. )f you do not re$uire additional
a--roal ste-s, you can set u- rules so that you can always com-lete and a--roe the document in the (e$uisitions window.
4inMma# -lanning, (eorder 2oint -lanning, and 4(2 generated re$uisitions are loaded as a--roed re$uisitions through the
(e$uisitions O-en )nterface. )f you set the )nentory 2rofile )":: (C (e$uisition '--roal to 1na--roed, you can o-tionally load
0ubinentory (e-lenishment re$uisitions as una--roed and use the document a--roal functionality in 2urchasing. This -rofile
o-tion affects only 0ubinentory (e-lenishment re$uisitions.
'n internal re$uisition corres-onding to a %anban card in Oracle )nentory enters 2urchasing through (e$uisition )m-ort with a status
of '--roed. >)f encumbrance7budgetary control is on, 2urchasing sets the status to 2reM'--roed.? 's soon as the internal re$uisition
is a--roed, )nentory automatically receies a status for the %anban card of )n 2rocess.
(e$uisition su--ly is created for the destination organi@ation as soon as the re$uisition is a--roed. )f you create a--roed re$uisitions
through (e$uisition )m-ort, su--ly is created at the time the re$uisition is created. 4aster 0cheduling74(2 and )nentory -lanning
get com-lete isibility to the incoming internal re$uisition su--ly so the -lanning -rocesses do not create additional reorders for items
that you hae already re$uested.
Create internal re0/isition
0ubmitted by 'nonymous on Thu, CB7AB7BCCL - AE:CL
Demand for inentory re$uests can come from seeral sources. The -rimary sources are:
O Online user6s re$uest for stoc% items out of inentory
O )nentory (e-lenishment (e$uests
O Oracle 4aster 0cheduling74(2 and 0u--ly Chain 2lanning generated re$uisitions
O E#ternal system6s re$uests
To create an internal re$uisition manually, naigate to Purchasing -> Requisitions -> Requisitions
A. 0elect re$uisitions ty-e as )nternal.
B. Enter the following details in line
Line Ty-e defaults from the DE*'1LT tab in -urchasing o-tions, change it if re$uired.
Enter the item, 1O4 defaults from the 1O4 for the item in alidation org of the item master.>"otes: if there is some list -rice
alue in orgA and no -rice in item master org then the list -rice in orgA wont default to item in line , whyPPPP?
rice is the standard cost of the ite"
Enter $uantity, need by date and T'; as a--licable.
9. Enter the destination organi@ation and location.
>+e sure that the org where the )( is created is defined as a customer and has a alid shi-to location?
E. Enter the source organi@ation and sub inentory of the source inentory.
0ae the record and a--roe the newly created internal re$uisition.
*nternal Re0/isition 8((rovals
'fter you create an internal re$uisition, you can o-tionally re$uire a--roal. *or onMline re$uests, you can set u- a--roal rules that
are s-ecific for internal re$uisitions, or you can share the same rules you use for -urchase re$uisitions. )f you do not re$uire additional
a--roal ste-s, you can set u- rules so that you can always com-lete and a--roe the document in the (e$uisitions window.
4inMma# -lanning, (eorder 2oint -lanning, Fanban and 4(2 generated re$uisitions are loaded as a--roed re$uisitions through the
(e$uisitions O-en )nterface.
)f you set the )nentory 2rofile )":: (C (e$uisition '--roal to 1na--roed, you can o-tionally load 0ubinentory (e-lenishment
re$uisitions as una--roed and use the document a--roal functionality in 2urchasing. This -rofile o-tion affects only 0ubinentory
(e-lenishment re$uisitions.
Creation of *nternal 'ales Orders
0ubmitted by 'nonymous on Thu, CB7AB7BCCL - AE:GK
Once you a--roe inentory sourced re$uisition lines, 2urchasing translates the re$uisition into an internal sales order, -roiding the
lin% between the re$uestor6s re$uirement and the -hysical demand against inentory. =ou run two se-arate batch -rocesses to create
the internal sales order from the a--roed re$uisition:
Create *nternal 'ales Orders.
Order *"(ort.
Create *'O
2urchasing uses location associations to create internal sales orders from internal re$uisitions for a gien delierMto location. When
you associate a customer and customer site with a location and then enter an internal re$uisition with that location as the delierMto
-oint, 2urchasing uses the associated customer and customer site on the internal sales order that it creates. The associated customer
site becomes the shi-Mto site for Order 4anagement6s shi- confirmation.

)nternal orders are automatically scheduled by setting the 0chedule 0hi- Date on the sales order to the "eedMby Date from the
re$uisition. )f you s-ecify a subinentory on the internal re$uisition line, Order 4anagement reseres the goods and uses only the
s-ecified subinentory for allocation. )f the goods do not e#ist at the s-ecified subinentory, Order 4anagement bac%orders them,
een if they do e#ist in another subinentory.
R/n *"(ort Orders
0ubmitted by 'nonymous on Thu, CB7AB7BCCL - AG:GG
Order )m-ort creates internal sales orders from the records in the interface table, and determines the order cycle and
defaults alues based on the order ty-e.

' 4ultiMOrg im-lementation of 2urchasing enables se-arate o-erating units within an organi@ation to o-erate inde-endently of each
other. &oweer, you may still need to obtain goods from another o-erating unit, and 2urchasing su--orts this. =ou can create an
internal sales order for an item in another o-erating unit. When creating this internal sales order, you must create it in the destination
organi@ation6s o-erating unit, and all Order 4anagement actiity must ta%e -lace within that destination o-erating unit. *or e#am-le,
the following table lists the generali@ed ste-s inoled and indicate the organi@ation in which they ta%e -lace.

When you use internal sales orders to transfer goods from another o-erating unit, the items6 transfer cost is -osted to the intercom-any
-ayables and receiables accounts as defined in the shi--ing networ% and an intercom-any inoice can be generated.
$anage"ent of *nternal 'ales Orders
0ubmitted by 'nonymous on Thu, CB7AB7BCCL - AK:E9
=ou manage internal sales orders using some of the same windows as customer sales orders. Once you im-ort an internal re$uisition
using Order)m-ort, you can use the 0ales Orders window to change the resered $uantity, schedule date, shi-Mto contact, and
shi-ment -riority. The destination organi@ation has com-lete isibility to any changes in incoming su--ly based on schedule date
changes or -artial shi-ments.
The -rice on the internal sales order line comes directly from the -rice on the re$uisition line >which is the standard cost of sourcing
organi@ation - om?. Order)m-ort does not use the -rice list to recalculate the line -rice. &oweer, the -rice that is used when -osting
the intercom-any -ayables and receiables information is the item cost -lus any mar%u- defined in the shi--ing networ%.
Once an internal sales order is scheduled, it is isible as demand. =ou can resere inentory for internal re$uisitions either to the
organi@ation, or the organi@ation and subinentory leels. Order 4anagement does not -rocess internal sales order lines for the
(eceiables )nterface, een if the (eceiables )nterface is an action in the order cycle for the internal sales order.
The internal order -rocess can start with )nentory, 4(2 or it can start in the -urchasing module. 'll re$uisitions im-orted from
)nentory or 4(2 will be loaded with an '1T&O()Q'T)O"!0T'T108D'22(O:EDD unless the re$uisitions are created by
)nentoryDs 4in-4a# 2lanning (e-ort and those can only hae an '1T&O()Q'T)O"!0T'T108D)"CO42LETED when the -rofile
o-tion called D)":: 4inma# (eorder '--roal to '--roedD is set to -reent re$uisitions from being created in an a--roed status.
The 4in-4a# 2lanning (e-ort must be run with the (estoc% -arameter set to =es in order for the re$uisitions to be im-orted.
*or the re$uisitions created from the 4(2 and )nentory modules, the (e$uisition )m-ort -rogram must be run in order to moe
records from the re$uisition interface tables to the historical 2O!(E<1)0)T)O"!&E'DE(0!'LL,
2O!(E<1)0)T)O"!L)"E0!'LL and 2O!(E<!D)0T()+1T)O"0!'LL.
'll internal re$uisitions created in the 2urchasing module will directly insert into the historical re$uisition tables by-assing the
interface tables. When each re$uisition is a--roed, data will be inserted into the 4TL!0122L= table. When the items on the
re$uisition are stoc%ed in inentory, the su--ly data can be iewed from the inentory form called )tem 0u--ly7Demand.
Once the )nternal (e$uisition is a--roed, a user should run Create )nternal 0ales Orders >from a 2urchasing res-onsibility? to load
the internal sales orders interface tables called in Order Entry.
'fter the Create )nternal 0ales Orders has com-leted, a user should run )m-ort Orders from an Order 4anagement or Order Entry
res-onsibility, using the Order 0ource and Ty-e as it is shown in the 2urchasing O-tions form under the )nternal (e$uisition tab.
't that -oint, Oracle Wor%flow will -rocess the internal sales order using the wor%flow definition listed for the Transaction Ty-e
definition in Order 4anagement. When the wor%flow com-letes the 0hi--ing "etwor% is chec%ed to see if the Transfer Ty-e between
the source and destination organi@ation is )n transit or Direct.
)f the %ransfer %y(e is *n transit, then the )nentory manager will load the (eceiing tables so the )nternal (e$uisition can be found
in the (ecei-ts form R2O-(eceiing: (ecei-tsS. 't the same time, the )nentory manager will insert an issue transaction into
4TL!T('"0'CT)O"0!)"TE(*'CE and will -rocess it through to 4TL!4'TE()'L!T('"0'CT)O"0 and
4TL!O"&'"D!<1'"T)T)E0. This will decrement the source inentory organi@ationDs on-hand $uantity. When the recei-t is
deliered, the recei-t will be inserted into the receiing historical table called (C:!T('"0'CT)O"0. )f the internal re$uisitionDs
Destination Ty-e is E#-ense, there will be no recei-t transactions added to the inentory tables. )f the internal re$uisitionDs Destination
Ty-e is )nentory, the recei-t transaction will moe through TL!4'TE()'L!T('"0'CT)O"0!TE42
and insert into 4TL!4'TE()'L!T('"0'CT)O"0 and 4TL!O"&'"D!<1'"T)T)E0. This will increment the on-hand $uantity
in the receiing inentory organi@ation.
)f the %ransfer %y(e is Direct, then the )nentory manager will insert an issue transaction into
4TL!T('"0'CT)O"0!)"TE(*'CE and will -rocess it through to 4TL!4'TE()'L!T('"0'CT)O"0 and
4TL!O"&'"D!<1'"T)T)E0. This will decrement the source inentory organi@ations on hand $uantity. *or Direct Transfer Ty-es
with a destination ty-e of E#-ense, the only transaction that will moe through inentory will be the issue transactionT howeer for
destination ty-es of )nentory will additionally hae a recei-t transaction created, which will automatically moe through
4TL!4'TE()'L!T('"0'CT)O"0!TE42 and insert into 4TL!4'TE()'L!T('"0'CT)O"0
and 4TL!O"&'"D!<1'"T)T)E0 without any user actions needed. This will automatically increment the on-hand $uantity in the
receiing inentory organi@ation.
*R *'O across O(erating /nit
0ubmitted by 'nonymous on Wed, CB7C97BCAC - AA:9B
B/siness re0/ire"ent9
)nternal re$uisition needs to be created in )nA in O1A>Destination organi@ation? and the material needs to be -rocured from )nA in
O1B>0ourcing Organi@ation?.
'et/(s
A. Define Location LocA and attach )nA to it.
Define Location LocB and attach )nB to it.
B. Create a new customer )nternal Customer and create sites in both the O-erating unit.
3o to O1B O4 res-onsibility and create a bill to. 'ttach the LocA and organi@ation )nA in )nternal Tab
3o to O1A O4 res-onsibility and create a bill to. 'ttach the same LocA and organi@ation )nA in )nternal Tab
Serial numbers cannot be captured during 2# receipt if the item is serial number control at shipment
Serial number control at receipt works fine for manual receipt3 $his implies receiving using serial number for all
transactions3 .ay be worked around using a logical receiving organiation3

How to Calculate Freight Charges in Order Management
Categories+ #.
$his is a workaround solution for one of the most asked 9uestion by Clients implementing #rder .anagement DHow to Calculate Freight Charges?D $hanks to
Bill for sharing this wonderful solution3 #racle doesnEt have solution for this even in R5<3
Problem: 1dd (reight Charges to a Sales #rder in #rder .anagement and have #racle07erte* tell how much ,if any/ $a*es should be charged on the (reight
Charges3
Solution:
Use an !tem called FREIGHT' which is basically treated as any other !tem where you can establish the ta* code on the line and charge ta* on freight
appropriately3 Setup the !tem in !nventory and have to pick and ship it for each order3
Use a DPromotional o!i"ierD which is 9ualified by many different pricing attributes ,including (reight $erms& Shipping .ethod& #rder Category& etc3/3 So
the idea is % DBuy any item and get (reight at E=E priceD3 $his solution works for the credit card orders& cash 0 check orders and advance pay3 "et payment
term orders typically use actual freight cost3 8ou may also have to setup a new defaulting rule to handle defaulting the line type based on the item being
(R)!F4$3 $his was to ensure the correct C#FS account was used to account for the freight3
Pro"ile #$tions to Consi!er +
o #: Charges "or Inclu!e! Item+ 6hen this profile option is set to E8E& and the calculate price flag of the order line with an included item is either
Calculate 2rice ,8/ or 2artial 2rice ,2/& then the eligible freight charges are applied to the order line3 (or backordered lines within !ncluded !tems&
both the profile options #.+ Charges for backorders and #.+ Charges for !ncluded !tem need to be set to 8 to view and apply any freight
charges3
o #: Charges "or bac%or!ers+ !f the profile option is set to E8E& the system will set the calculate price flag to E2E and freight charges are
calculated for backorder lines3 !f the profile option is set to E"E& the system will set the calculated price flag to E"E and freight charges are not
calculated for backorder lines3
o &P: Selling Price Roun!ing #$tions+ Determines if your freight charges are rounded3 See+ #racle 1dvance 2ricing !mplementation Fuide&
2rofile #ptions3
o #: Inter"ace Freight Ta' Co!e From (ine+ $he default value set at site level is E"oE& so that e*isting customers are not impacted due to the
change3 $a*Gcode is now interfaced to 1R for freight lines that are interfaced as revenue lines when the profile is set to E8esE3 $a* code is
populated in the same way as the sales order line along with which this freight line is interfaced3
o Ta': In)entor* Item "or Freight: $his profile option is used only when the freight item is passed as revenue line3 !f you set the value of this
profile option to !nventory !tem then the !nvoicing module passes this item for freight charges& which will be treated as revenue lines3 $his profile
option can only be set at the 1pplication or Site level3
o Ta': In)oice Freight as Re)enue: !f the Receivables profile option $1=+ 1llow $a* Code #verride is set to E8)SE& and profile option $1=+
!nvoice (reight as Revenue is set to E8)SE& then freight charges are treated as revenue lines& and the !nvoicing module will pass 71$ ta* and
associated sales credits for processing3
o #: Cre!it Sales$erson "or Freight on Sales: $his profile option specifies whether to credit the Salesperson on the invoicing line or order
header for freight charges when the freight charges are treated as revenue3