Why Order Management is necessary ?

Order management is the facility to: Capture sales orders Compute the price of items on order line Complete the order by shipping the items and passing the information to an account receivable system through auto invoicing.

OM Module Interaction
Inventory Bills of Material Work in Process Purchasing Payables Receivables CRM Module

Order Management Cycle

Types of Orders
1. 2. 3. 4. 5. 6. 7. General sales order Back order Configure to order Drop shipment Back to back order Internal Sales Order RMA

Pre Requisites for Order Management.

Check if, 1. GL calendar is open
(All the months and adj.month are open for error free operation) GL > Set up > Financials > Calendars > Accounting)

2. Inventory calendars of V1, M1, M2 and your orgn. calendars are open (Check if today is Sat/ Sunday. Make it working day) Tools > Build the calendar. 3. Purchase periods are open (Purchasing > Set up > Financials > Accounting > Control Purchasing periods 3. Items are available in item master and inventory organisations like M1, M2 & your organisation. (Else, add items & quantity through inv > Misc. Receipt)

Profile Options Setting

Profile Options Setting: Sys Adm. > System Profile Values Responsibility : Order Management Super user, Vision Operations, USA Profile : OE% Find. OE: Item Validation Organisation : Vision Opns. USA Similarly, Responsibility : Order Management Super user, Vision Operations, USA Profile : PO% Find PO: Work flow processing mode : Online This change allows Order Management to default code and revenue account information accurately.

Set ups for Order Management

The following set ups are required for order management: 1.Transaction types OM > Set up > Transaction Type > Define 1. Order 2. Return 3. Mixed orders and returns You can specify an order category on the order transaction type. The order category can be defined as order, return, or mixed

Set ups for Order Management

2. Document sequence (for serial numbering) OM > Set up > Documents > Define & Assign

The documents like Sales Order, Quote, RMA etc can be sequenced automatically and can start the initial nos. as per our wish say, 1000, 5000 etc.
3. Modifier (to modify the price of an item) OM > Pricing > Modifiers > Modifiers Set up Modifiers enable you to set up: 1. Price adjustments (e.g. discounts, price breaks and surcharges), 2. Benefits (e.g. free goods, coupons) and 3. Freight and special charges that applies immediately Pre defined Modifiers are available for your information.

Set ups for Order Management

4.Qualifier (to qualify for certain condition) OM > Pricing > Qualifier Set up First set up qualifier and assign this qualifier to modifier Qualifiers: Define Qualifier Groups.
OM > Pricing > Qualifier set up An example of a Qualifier Group could be: 1. Customer must be a specific customer and 2. Order Amount is between $5000 and $10000 or 3. Order Quantity must be greater than 1000.

Price List
Price lists are essential to ordering products because each item entered on an order must have a price.

Each price list contains 1. Basic list information 2. Price breaks 3. Pricing attributes 4. Qualifiers & Modifiers 5. Secondary price lists Secondary Price Lists: If an item is not in the primary price list, secondary price list Is used

Basic Pricing
Basic pricing included in Order Management enables you to: Set up price lists and secondary lists Create static formulas Discount by percentage or amount Apply freight charges and surcharges Set up customer pricing agreements

Price Agreement
Pricing Agreement: Pricing > Pricing Agreements You can establish agreements with your customers to define the prices, payment terms and freight terms. Types of prices on price lists: Unit price : A fixed price. Percent Price : A price which is a percent of the price of another item. Formula : The price of an item to be a percentage price of another price list line. Price Break : The price depends on the quantity or range of quantity ordered. (E.g. For quantity up to 10 Pcs. price will be Rs. 50. From qty.11 to 50 price will be Rs. 45)

Customers: OM > Customers > Profile classes OM > Customers > Summary You can: Create customer profile classes and assign them to customers Create and maintain customer information Enter multiple ship-to sites for each customer Enable related customers to establish reciprocal payment and contract terms Review customer information online and in reports
Note: The system will perform a search for your customer before it allows you to enter a new customer. This provides a check for duplicate customer entry.

Customers

Managing Customer Profiles

You can set credit and order limits for each customer, or customer site with the use of profile class. Orders go on hold automatically if they violate these limits. When you establish a customer, the customer processing function assigns it to the default (seeded) customer profile class. Note: If you want to assign the customer to a different profile class, select it from the list of values before you save your work.

Drop Shipment
Drop shipment enables to take order from customer and fulfill it directly from a supplier Key Business Drivers Low inventory cost Reduced shipment time to customer Can offer a variety of product to customer Used heavily in contract manufacturing environment where the product is standardized and the company plans to focus more on product design rather than manufacturing

Drop Shipment Process Flow : Standard Item

Customer
Customer requests product Place PO Customer receives item

Oracle OM

Create Oracle Sales order

Specify line is Drop shipped & Book order

Oracle Purchasing

Purchase Requisition (PR) created

Autocreate PO from PR (Can be automated using BPA and Release)

Approve PO & communicate to supplier (Via EDI, fax, email etc

Oracle Inventory

Logical receipt into Drop ship location (EDI, manual)

Supplier

Communicate ASN

Shipment of product to customer

Finance

Customer Invoice (AR)

Manage collections

Supplier invoice (AP)

Payment

Back to Back Order

Able to create specific supply orders for customer sales orders. Key Business Drivers
Lower inventory cycle time and cost Link supply to specific demand

Back to Back Order: Process flow

Customer
Customer requests product Place PO Customer receives item

Oracle OM

Create Oracle Sales order

Specify line item enabled for Backto-Back orders & Book order

Oracle Purchasing

Purchase Requisition (PR) created

Autocreate PO from PR (Can be automated using BPA and Release)

Approve PO & communicate to supplier (Via EDI, fax, email etc

Oracle Logistics

Receive items against the PO linked to the sales order

Pick Release SO

Ship Confirm

Decrement Inventory

Supplier

Communicate ASN

Shipment of product to the organization

Finance

Supplier Invoice (AP)

Payment

Customer Invoice (AR)

Manage Collections

Internal Sales Order

Steps for Internal Sales Order Creation

Create Pur. Requisition

Approve Note Purchase Requisition number Run request Create Internal Sales Order Import Purchase Requisition into Sales Order form Pick Release Sales Order Ship confirm Receive the item into the internal sub inventory Run workflow background process (To close the Sales Order)

Return Material Authorisation

Situation: When some items are being returned from the Customer due to some reason we make the Return Material Authorization. RMA with credit only RMA with receipt and credit RMA with receipt and no credit RMA with repair RMA with replacement

Return Material Authorisation

Holds
Holds: Placed on order headers, order lines, customers, sites, and items. Stop an order anywhere in the order flow. Removed manually at any time or automatically by setting up a hold until (expiration) date. Applying Holds: You can create holds that: Use either one or two criteria Apply either to new or to existing orders or to both types of orders To apply holds, perform one of the following: Navigate (M) Tools and select Create Holds Source. Click Actions and select Apply Holds.

Applying & Releasing a Hold

Apply a Hold to a Specific Order or Return Line: 1. In the Sales Orders window, query the order or return line that you want to hold. 2. In the Line Items tabbed region, select the line you want to hold. 3. Click Actions, then select Apply Hold. 4. In the Apply Holds window, Hold Name tabbed region, select Hold Name. 5. Click Apply Holds. Releasing Holds: In the Remove Holds window, enter your hold search criteria. 2. Select the hold you want to remove. 3. Enter the release reason. 4. Save your work.

Multi-Org Access Control

Improve Efficiency Process data across multiple OUs from one responsibility Process transactions more efficiently for companies that have centralized business functions or operate Shared Service Centers Obtain better information for decision making Obtain a global consolidated view of information View information, such as supplier sites and customer sites across multiple Ous Reduce Costs Speed data entry Reduce setup and maintenance of many responsibilities

Multi-Org Access Control

What is TCA and its Background

TCA = Trading Community Architecture Provides a single, universal definition of trading partners across applications and job function TCA is an Data Model it is not a Module
Oracle E-Business Suite Application Families*

Sales

ServiceMarketing Financials
TCA Enabling Infrastructure
Common Party UI, DQM, D&B Integration, APIs

HR

3rd Party Systems

TCA Data Model

HZ Schema

What is TCA and its Background

A Trading Community Architecture is a way to understand who our trading partners interact with inside and outside the enterprise. puts a foundation in place for a trading partner model
Linking Suppliers and Customers Online Marketplace Shared Service Centers

TCA Data Model: Major components

Party: defined as people, organizations, groups or relationships. Represents the participants in the Trading Community. Account: defined as a financial roll-up point. Contact point: defined as any electronic point that you could use as a contact. For example, telephones, URLs, email addresses, etc. Location: a physical place. Relationship: establishes the relationship between any two parties.

TCA Integration