Thursday, 4 December 2014

Back 2 Back and Dropship Order Process in Oracle R12.2





  • This order type applies when customer orders a product which you do not stock or manufacture.
  • In turn customer places the order, you place the order with supplier and after the shipment from the supplier, and you distribute the product to the customer.
  • Below is the flow chart for B2B process flow:

STEP 1: Item Creation for Back 2 Back orders
  • Item: Prism
  • Copy the Purchasing template.
  • Purchasing Tab: List Price : $15, Used Approved Supplier © enable
  • General Planning Tab: Source Type : Supplier, Make or Buy : Buy
  • Order Management Tab: Assemble to Order © enable.
  • Assign to our inventory.


STEP 2: CREATE APPROVED SUPPLIER LIST
Invoking:  Order Management →Purchasing→ Supply Base→ Approved Supplier List
  • Lets create an Approved supplier List for the item we created (Prism).

STEP 3: Create Sourcing Rule
Invoking:  Order Management →Purchasing→ Supply Base→ Sourcing Rule
  • We are going to create Sourcing Rule as: Prism_Sourcing.



Step 4: Assign Sourcing Rule
  • Query the  ”Supplier Scheduling Assignment”  set by using F11 key & paste our item, Sourcing rule as below.

STEP 5: BOOK SALES ORDER
  • Now book the sales order and the status of the line will be Supply Eligible.

  • Select the Supply Eligible text →Right Click→Progress Order→OK

  • Now the status will be changed to External Req Requested as below.

  • Now run the Workflow Background Process from View→ Request

STEP 6: Requisition Import
  • Switch the responsibility to Purchasing and Run Requisition Import from  View→ Request
  • Select Import Source as CTO.


  • Here Requisition Import and Create Releases Program runs and view the output, so that we can make sure that the releases has been processed successfully as below.

STEP 7: QUERY REQUISITION
Invoking: Purchasing→Requsitions→ Requisitions Summary
  • Now query by the item: Prism (we created) and create the REQ as below.



  • Now if you check the sales order line status it will be External Req Open.



STEP8: AUTOCREATE PURCHASE ORDER
Invoking: Purchasing→Purchase Order→ Purchase Order Summary
  • Now let’s create a purchase order with the req # we created.



  • Now if you check the status of the sales order after creating PO, it will be PO Open.



STEP 9: Taking Receipt
Invoking: Purchasing→ Receiving → Receipts




  • Corresponding order # created:
Sales Order
10007
Requisition
15950
PO
6605
Receipt
23707

  • Here we took the receipt for the PO created and moved to the Sub Inventory FGI and status will be changed to Awaiting Shipment as above.
STEP 10: PICK Release/ Ship Confirm
  • From here we can do normal Pick up release transaction in order to ship the order from inventory to Customer.
Invoking: Order Management→ Shipping→ Release Sales Order

Invoking: Order Management→ Shipping→ Transactions


  • Running Workflow background Process.

  • Final status of order closed, which means the order has been shipped to the customer.


  • This completes the Back 2 Back order flow.















DROP SHIP Order Flow



  • Drop Ship is mere similar to Back 2 Back order except the supplier directly ships the order to customer rather than our inventory.
  • Below is the flow chart for your reference.
All steps are similar except two changes:
  • Source type as External in sales order line
  • Import source as ORDER ENTRY while executing Requisition Import

STEP 1: SALES ORDER CREATION
  • Let’s start with placing a new sales order.

  • Follow similar steps as Back 2 Back orders.


Progressing Supply Eligible

  • Running Workflow Background process.

  • Now the status of the sales order line will be Awaiting Receipt.

STEP 2: Requisition Import
  • As discussed before, mention Import Source as ORDER ENTRY as below.

  • From here we follow P2P cycle.
Querying REQ, PO, taking Receipt as below.




  • Corresponding # created:
Sales Order
10008
Requisition
15951
PO
6606
Receipt
23708

  • Now if you check the status of the sales order line it will be shipped.




  • Run the workflow background process.


  • The status will be closed which means the order has directly been shipped to customer rather than transferred to our inventory.


Different line Status of the Sales Order:
SL NO
PROCESS
BACK 2 BACK METHOD
DROP SHIP METHOD
1
SALES ORDER BOOKING
SUPPLY ELIGIBLE
SUPPLY ELIGIBLE
2
PROGRESSING SUPPLY ELIGIBLE
External Req Requested
Awaiting Receipt
3
CREATING REQUSITION
External Req Open
Awaiting Receipt
4
CREATING PURCHASE ORDER
PO Open
Awaiting Receipt
5
TAKING RECEIPT
Awaiting Shipment
SHIPPED
6
After  Performing O2C CYCLE
CLOSED
Not Applicable directly send to the Customer CLOSED


  • This completes the explanation about BACK 2 BACK METHOD & DROP SHIP METHOD in Oracle EBS R12.
Thank you,
Raja








4 comments:

  1. Regards
    Sridevi Koduru (Senior Oracle Apps Trainer Oracleappstechnical.com)
    LinkedIn profile - https://in.linkedin.com/in/sridevi-koduru-9b876a8b
    Please Contact for One to One Online Training on Oracle Apps Technical, Financials, SCM, SQL, PL/SQL, D2K at training@oracleappstechnical.com | +91 - 9581017828.

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