oracle r12 om setups

5/21/2018 Oracle R12 OM Setups

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Oracle Apps Manufacturing & DistributionAuthor

Jagan Vidyala

Freelance Consultant and Corporate Trainer

ORACLE SCM / MFG / ASCP / EAM Suites

10 Yrs of experience in IT consulting inaddition to 18 Yrs of domain experience in

Inventory Mgmt, Manufacturing, Global

Procurement, Sales & Marketing andexecution of Turnkey Projects.

[email protected] +91-91774-77013
mailto:[email protected]:[email protected]


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Order Management Overview

Shipping

Customer

Sales

Department

Inventory

Order

Invoice Order


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Oracle Apps Manufacturing & DistributionOM Setups

Define Sales Order Flexfields Define Payment Types Define Payment Terms Define Holds

Define Credit Check Rules Define Shipping Priority Define Agreement Types Define Freight Terms

Define FOB Codes Define Demand Classes Define Order Import Sources Define Customer Profile Classes

Define Price List


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Oracle Apps Manufacturing & DistributionOM Setups

Define Customer Relationship Define Sales Credit Types Define Sales Persons Define Release Sequence Rules Define Pick Slip Grouping Rule Define Pick Release Document Set Define Shipping Document Set

Define Customer System Options Define Container Load Details Define Exceptions Define Freight Carriers

Define Freight Cost Type


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Oracle Apps Manufacturing & DistributionInventory Setups

Define Shipping Parameters Define Pick Slip Define Containers Define Vehicle


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Oracle Apps Manufacturing & DistributionPrice Application Method

Unit price: Inventory Items

Percent Price: Service Item

Block Price / Price Break: RecurringValue to be applied

Formulas:

Static Formulas Dynamic Formulas


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Oracle Apps Manufacturing & DistributionTypes of Prices for Price List

Unit price: A fixed price. (Items) Percent Price: A price which is a percent of

the price of another item.(Service Item) Formula: Multiple pricing entities and

constant values related by arithmeticoperators. For example, you define theprice of an item to be a percentage price

of another price list line. Price Break: If the price of an item varieswith the quantity ordered, you can definebracket pricing or price breaks. (Recurring

Value to be applied)


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Oracle Apps Manufacturing & DistributionQualifiers

A qualifier consists of qualifier linesthat define eligibility for a particular

price, discount, promotion, orbenefit.

Assign a qualifier grouping numbersto qualifier lines to create AND &OR conditions that define how thepricing engine should evaluate the

qualifier lines.


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Oracle Apps Manufacturing & DistributionSales Order Types

Sales Order Back Ordered

RMA Drop Shipment Trip Sales Order

Internal Sales Order Back To Back Order


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Oracle Apps Manufacturing & DistributionInventory Organizations

Define inventory organizations (warehouses),parameters, subinventories, and picking rules inOracle Inventory. You must define at least one item validation

organization and at least one organization thatacts as an inventory source for orders fulfilledinternally. If you plan to drop ship some orders,you must also define at least one logical

organization for receiving purposes. Your itemvalidation organization can be the same as yourinventory source or your logical receivingorganization, but you cannot use one organization

for all three purposes.


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Oracle Apps Manufacturing & DistributionContainer Load Details

Item Physical Attributes 25 Lbs, 2 CFT, Dim: 2x1x1 FT

Container Physical Attributes 10 Nos 250 Lbs, 20 CFT, 5x2x2

20FT Container

20000 Lbs, 1360 CFT, 20X8.5x8 16000 Lbs, 1280 CFT, 20x8x8 40 FT Trailer Vehicle = 2 x 20FT

Container


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Oracle Apps Manufacturing & DistributionBasic Order Process Flow

Customer requests order

Enter order

Schedule

Release order

Ship product and update inventory

Invoice the customer

Complete

Book order

1

2

3

6

5

4


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Oracle Apps Manufacturing & DistributionSales Order - Setup

Setup of organization parameters.

Create a price list with the items youcreated.

Create an order/transaction type,which includes 2 line types one forthe line orders, second for linereturns, and assign both in an ordertype.

Define a sequence, as how your orderdocuments numbers should come.


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Oracle Apps Manufacturing & DistributionSales Order - Setup

Assign this sequence to the ordertype you are using and order numbercomes from the order type

Define pick slip grouping rules and

pick release sequence rules.

Define shipping documents.

Assign pick slip grouping rules andpick release sequence rules in theshipping parameters.

Create Sales Order with the above.


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Oracle Apps Manufacturing & DistributionCreate Sales Order StepsOrders, Returns > Sales Order

Select Customer, Ship-To Location,Bill-To-Location, Order Type, PriceList, Warehouse, and Payment Termsin Order Information.

Click on Lines Information, the orderwill be saved and Order # will begenerated.

Enter Item and Qty, item availabilitywill be displayed in Availability

Window from warehouse.


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Oracle Apps Manufacturing & DistributionCreate Sales Order StepsOrders, Returns > Sales Order

Save the Order, observe the Line andOrder header status as Entered.

Book the Sales Order by clicking onBook Order button.

Observe the status change of Line to

Awaiting Shipping and Order headerto Booked.


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Oracle Apps Manufacturing & DistributionRelease Sales Order StepsShipping > Release Sales Orders > Release Sales Orders

Enter Order # and Warehouse name,set Ship confirm to null from AutoShip in Shipping tab, click onConcurrent will trigger Pick Slip

Generation Report Observe Pick Slip Report has created.

In Pick Slip Report, observe DeliveryOrder #, Move Order #, Pick Slip #,and Pick Batch # generated.

Observe the status change in Line to

Picked.


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Oracle Apps Manufacturing & DistributionShipping Transaction StepsShipping > Transactions

Query Mgr > Enter Order# > Find

Lines/LPN tab > Details > enter orderQty in shipped Qty field > Done

Delivery Tab > Select Ship Confirm inActions > Go

The Status of Line changes toShipped in Shipping Transaction form

Observe the Status change in Order

line to Shipped


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Oracle Apps Manufacturing & DistributionSales Order and Line Status

Run Workflow Background enginefrom INV Res

Observe the Order line status changeto Closed

Order Header status changes at the

end of the period to closed


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Oracle Apps Manufacturing & DistributionBack Ordered

When you do not fulfill the sales order,or if the inventory is out of stock fordelivery to customer.

Back order is a status on the order lineor delivery line indicating that youtried to release an order for picking in

the warehouse, but that pick releasewas unsuccessful due to non-availability of inventory.

Backorder can be partial or complete


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Oracle Apps Manufacturing & DistributionBack Order steps

Follow the steps similar to CreateSales Order for Entering, Booking andReleasing Sales Order.

Lines/LPN tab > Details > enterpartial Qty in shipped Qty field >Done

System will create backorder for theremaining Qty

Delivery Tab > Select Ship Confirm inActions > Go


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The Status of Line changes toShipped in Shipping Transaction formfor partial quantity

Observe the Status change in Order

line to Shipped Run Workflow Background engine

report from INV Responsibility

Observe order line status change toClosed

Release Sales Order for Back OrderQty, enter sales order # in Releasesales order form


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Create shipping transaction forremaining qty.

Shipping line status changes toshipped.

Observe the Status change in Orderline to Shipped

Run Workflow Background engine

report from INV Responsibility Observe order line status change to

Closed

Order Header status changes to

Closed at the end of the period.


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Oracle Apps Manufacturing & DistributionRMA

Return Material Authorization:

RMA is performed to accept thematerial returned by Customers afterreceiving the goods.

Reasons for RMA:

Defective or damaged material, Notsatisfactory, and wrong item received.


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Oracle Apps Manufacturing & DistributionTypes of RMA Orders

RMA Credit Order, with no receipt

RMA Credit Order, with receipt


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Oracle Apps Manufacturing & DistributionRMA Credit Order with no receipt

Query the Sales Order to be copied Enter RMA - Credit as Order Type,

enter reason for return. Click on Copy RMA Credit Order is Created Enter Qty to be returned in the lines

Observe Line Type is Return-CreditOnly, No Receipt

Book RMA Sales Order


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Oracle Apps Manufacturing & DistributionRMA Credit Order, with receipt

Query the Sales Order to be copied Enter RMA credit Order with Receipt as

Order Type, enter reason for return Click Copy RMA Order is Created Enter Qty to be returned in the lines

Observe Line Type as Return-Receipt Book RMA Sales Order INV > Transactions > Receipt > Enter

RMA Order # > Find > Receive Item.


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Oracle Apps Manufacturing & DistributionDrop Shipment

A Drop Shipment occurs when acustomer order is sourced from anddelivered by a supplier.

Order Mgmt sends information to thePurchasing to create the PO, and thenwhen the PO item is received (to indicatethe shipment from the supplier to yourcustomer), the order line is automaticallyupdated to indicate that it was fulfilled.


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Oracle Apps Manufacturing & DistributionDrop Shipment

Customer A, orders item x from Org B

Org B, orders item x from Supplier C

C ships, the item x directly to A

B Invoices, A for the order

C Invoices, B for the order

V d D Shi C bi ti St d d


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Oracle Apps Manufacturing & DistributionVendor Drop Ship or Combination Standard

with Drop Ship Order Flow

Drop Ship item Internally Sourced Item

Drop Ship: Yes or No?

Enter order

Close sales order

Create invoice

Schedule

Ship and update inventory

Send to Purchasing

Supplier ship confirmation


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Oracle Apps Manufacturing & DistributionDrop Shipment - Steps

Define a Sales Order, with line sourceas External. Book the Sales Order Line Status will be booked Observe Workflow Status - Drop ship Run Workflow Background Process The line status will be Awaiting Receipt

Run Requisition Import process Login to PO Responsibility Observe Requisition # in Requisition

Summary / OM Line


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Oracle Apps Manufacturing & DistributionDrop Shipment - Setup

While define the Item in Item Master,enter values for the following item

attributes.

List Price

Lead TimeOrder Source ExternalInternal Order - Enabled


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Oracle Apps Manufacturing & DistributionDrop Shipment - Steps

Auto Create PO from Requisition Approve the PO Receive the Full quantity Verify the line status in OM - Shipped Run Workflow Background Process Sales Order > Actions > Addition Line

Information > Invoice/Credit Memo

Tab > Observe generated Invoice # Line Status will be Closed Run Auto Invoice Master Program to

move Invoice to Receivable Interface


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Oracle Apps Manufacturing & DistributionInternal Sales Order (ISO)

Procurement of material from an

internal org through InternalRequisition and Internal SalesOrder.


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Oracle Apps Manufacturing & DistributionInternal Order Flow

Inventory

Expense

Pick Release

Import or reschedulerequisitions

Create internal

sales order

Manuallycreate

Requestor Demand

Approve requisition

Order entry

Schedule order

Ship confirm

Intransit

Receive

Inventory ExpenseDirect


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Create Item in Item Master PO Item. Enable Internal Ordered in Order

Mgmt tab of Item Master.

Assign Item to M1 & M2. In M2 Org Item, define General

Planning tab parameters. Select Planning Method as Min-Max,

enter Min-Max Qty and Order Qty Select Source as Inventory and select

M1 as Source Org.

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Define Shipping Network between M1& M2

Create Min-Max Planning Report. Verify the Reorder Qty is created. Switch Res to Purchasing Run Requisition Import Report Observe Requisition # from Requisition

Summary. Approve the Requisition. Run Create Internal Order Report

Switch Res to Order Mgmt

O l f i & i ib i


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N> Orders, Returns > Import Orders >Order Import Request

Enter Parameter details

Order Source = Internal Click on Order Reference, will map

Internal Requisition # by default.

Submit the report Add the item in Corporate Price List Query the Order Information from

Order Organizer with current date.

O l A M f t i & Di t ib ti


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Change the Price List in the header. Dont disturb line item quantity. In line change pricelist and enter price. Observe > Order Information >

Others tab, Order Source = Internaland Order Source Reference = InternalRequisition #

Release Sales Order Ship Confirm Sales Order Run Workflow Background Process

Close the line and Order



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Oracle Apps Manufacturing & DistributionTrip Sales Order

Multi-Customers and Multi-Locationsdelivery Sales Order.

Create sales orders for three differentcustomers and different locations

Book all the three sales orders

Release all the three sales orders Create deliveries for three sales orders Plan arrival & departure time for each

delivery



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Oracle Apps Manufacturing & DistributionTrip Sales Order

AutoCreate trip for final destination Assign trip to other deliveries Ship Confirm the trip Run Workflow Background Engine Observe order line status change. Close the Order



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Oracle Apps Manufacturing & DistributionBack To Back Order

B2B the source will be internal but theitem will be procured after the order isreceived or demand is made.

In this case, material is taken frominventory.

One PO is tied to one sales order

O l A M f t i & Di t ib tiComparison


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Oracle Apps Manufacturing & DistributionComparisonB2B vs. Drop Shipment

In B2B the source will be internalbut the item would be procuredafter the order is created or afterthe demand is made.

In Drop Ship orders, material isdirectly shipped to the customerfrom the supplier. Thus, inventory is

not affected. In this case, onlylogical receiving is done. But in thecase of B2B orders, material is

issued from inventory.

O l A M f t i & Di t ib tiComparison


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Oracle Apps Manufacturing & DistributionComparisonB2B vs. Drop Shipment

In Drop Ship the source will beexternal

Drop Ship orders may have manyPurchase Orders connected to them.In Back-to-Back orders one PO is tied

to one Sales Order.

O acle Apps Man fact ing & Dist ib tion


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Oracle Apps Manufacturing & DistributionBack To Back Order

Customer A, orders item x from Org B

Org B, orders item x from Supplier C

C ships, the item x to B

Org B takes item x in to inventory

B ships the item x to Customer A B Invoices, A for the order

C Invoices, B for the order

Oracle Apps Manufacturing & DistributionWeight-Volume Load Balancing


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Oracle Apps Manufacturing & DistributionWeight-Volume Load BalancingSales Order

Define Item, and enter PhysicalAttributes for Item.

Define Container-A for Item, enterPhysical Attributes (Box)

Define 20/40 container for thecontainer A

Define Vehicle for 20/40 container Define Container Load Details to

establish relationship between item,

container and vehicle.

Oracle Apps Manufacturing & DistributionWeight-Volume Load Balancing


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Oracle Apps Manufacturing & DistributionWeight-Volume Load BalancingSales Order

Book Sales Order Release Sales Order Ship Confirm Sales Order Run Workflow Background Engine Observe status change in order line Order Header status changes during

period end.

Oracle Apps Manufacturing & Distribution


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Oracle Apps Manufacturing & DistributionIntercompany Cycle



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Oracle Apps Manufacturing & DistributionR12 New Features

Creating Orders in Contact Center Credit Card Encryption Credit Card Security Code Customer Acceptance

Exception Management Enhancements Improved Order Management, Install Base,

and Service Contracts Integration Inventory Convergence Mass Scheduling Multi-Organization Access Control Order Information Enhancements

Partial Period Revenue Recognition



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Oracle Apps Manufacturing & DistributionR12 New Features

Payment Due with Order (Pay Now Pay Later) Recurring Charges Sales Contracts Workbench Scheduling ATO Items without BOM

Telecom Service Orders with Equipment Terminology Changes Vertex Updates

oracle r12 om setups

Documents

price list unit price

fixed price

price breaks

percent ofthe price

inventory items percent

price list line

sales order flexfields

sales credit types