- 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:
- 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.
- 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:
- 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:
BACK 2 BACK METHOD
DROP SHIP METHOD
SALES ORDER BOOKING
PROGRESSING SUPPLY ELIGIBLE
External Req Requested
External Req Open
CREATING PURCHASE ORDER
After Performing O2C CYCLE
Not Applicable directly send to the Customer CLOSED
- This completes the explanation about BACK 2 BACK METHOD & DROP SHIP METHOD in Oracle EBS R12.