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 clients requiremen
t.
Quick Sales order form can be used to facilitate order details e
ntry.
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 whic
h are set as Alternates based on attributes such as ATP etc.
Hence alternate items can be booked if original item is not avai
lable as per customer timelines.
3. Client requires a single delivery for all orders of a customer, what setups n
eeds to be done for such a requirement?
In Shipping Parameter, set delivery grouping parameter to Custom
er 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 or
der is not available in Inventory
and system creates a purchase requisition and tracks the item th
rough creation of Purchase order from the requisition
and finally when PO receipt is made for the item, the receipt qu
antity is reserved against the sale order.
Setups include definition of item with attributes such as Built i
n 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 Configura
tor mainly.
ATO or Assemble to Order items are typically items that are buil
t as per the customers requirement.
Hence ATO model is entered in Sales order and end items are chos
en 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 f
or picking and shipping.
PTO or Pick to order items are items which are picked from inven
tory based on customer requirements and then picked and shipped.
6. What are the typical reasons for a line to get backordered during Pick Releas
e?

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 fr
om 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 crite
ria value as the item name.
9. How to setup Drop shipment cycle in OM?
Oracle Order Management and Oracle Purchasing integrate to provi
de Drop Shipments.
Drop Shipments are orders for items that your supplier ships dir
ectly 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 an
d 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 custo
mer 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 cur
rency 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 giv
ing 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 Pick
ing 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 whiche
ver is applicable as per setups.
15. What are processing constraints in OM?
Processing constraints ensure that user doesnt violate any business proce
ss or system defined process by putting checks on various actions
performed by user.
Typically actions such as cancelling orders are governed by processing c
onstraints.