ORACLE MASTERMINDS: Back 2 Back and Dropship Order Process in Oracle R12.2

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