97642001 Oracle Order Management Overview

7/31/2019 97642001 Oracle Order Management Overview

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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.


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OM Module Interaction

Inventory

Bills of Material

Work in Process

Purchasing

Payables

Receivables

CRM Module


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Order Management Cycle


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Types of Orders

1. General sales order

2. Back order

3. Configure to order

4. Drop shipment5. Back to back order

6. Internal Sales Order

7. RMA


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Pre Requisites for Order Management.Check if,

1. GL calendar is open

(All the months and adj.month are open for error freeoperation)

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 inventoryorganisations like M1, M2 & your organisation.

(Else, add items & quantity through inv > Misc. Receipt)


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Profile Options Setting

Profile Options Setting:

Sys Adm. > System Profile Values

Responsibility : Order Management Super user, VisionOperations, USA

Profile : OE%

Find.

OE: Item Validation Organisation : Vision Opns. USA

Similarly,

Responsibility : Order Management Super user, VisionOperations, USA

Profile : PO%

Find

PO: Work flow processing mode : Online

This change allows Order Management to default code and revenueaccount information accurately.


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Set ups for Order Management

The following set ups are required for order management:

1.Transaction types

OM > Set up > Transaction Type > Define

1. Order2. Return

3. Mixed orders and returns

You can specify an order category on the order transactiontype.

The order category can be defined as order, return, or mixed


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2. Document sequence (for serial numbering)

OM > Set up > Documents > Define & Assign

The documents like Sales Order, Quote, RMA etc can be sequencedautomatically 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.


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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. OrderQuantity must be greater than 1000.


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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 breaks3. 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


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Basic Pricing

Basic pricing included in Order Management enables youto:

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


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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 anotheritem.

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)


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CustomersCustomers:

OM > Customers > Profile classes

OM > Customers > SummaryYou 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 andcontract terms

Review customer information online and in reports

Note: The system will perform a search for your customer beforeit allows you to enter a new customer. This provides a check forduplicate customer entry.


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Managing Customer Profiles

You can set credit and order limits for each customer, orcustomer site with the use of profile class.

Orders go on hold automatically if they violate these limits.

When you establish a customer, the customer processingfunction assigns it to the default (seeded) customer profile class.

Note: If you want to assign the customer to a different profileclass, select it from the list of values before you save your

work.


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Drop Shipment

Drop shipment enables to take order from customer and fulfill itdirectly 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 focusmore on product design rather than manufacturing


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Drop Shipment Process Flow : Standard

Item

Customerrequests

product

PlacePO

Create OracleSales order

Specify line isDrop shipped &

Book order

Customer receivesitem

Customer

Oracle

Purchasing

Supplier

Finance

Customer Invoice(AR)

Managecollections

Oracle

Inventory

OracleOM

Logical receipt intoDrop ship location

(EDI, manual)

Shipment ofproduct to

customer

Purchase

Requisition (PR)created

Autocreate POfrom PR (Can be

automated usingBPA and Release)

Approve PO &communicate to

supplier (Via EDI,

fax, email etc

Communicate ASN

Supplier invoice

(AP)Payment


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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


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Back to Back Order: Process flow

Customer

requestsproduct

PlacePO

Create OracleSales order

Specify line itemenabled for Back-to-Back orders &

Book order

Customer receivesitem

Customer

Oracle

Purchasing

Supplier

Finance

Supplier Invoice

(AP)Payment

Oracle

Logistics

OracleOM

Receive items

against the POlinked to the sales

order

Shipment of

product to theorganization

PurchaseRequisition (PR)

created

Autocreate POfrom PR (Can beautomated using

BPA and Release)

Approve PO &

communicate tosupplier (Via EDI,

fax, email etc

Communicate ASN

Customer Invoice(AR)

ManageCollections

Pick Release SO Ship ConfirmDecrementInventory


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Internal Sales Order


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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)


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Return Material Authorisation

Situation:When some items are being returned from the Customerdue to some reason we make the Return MaterialAuthorization.

RMA with credit only

RMA with receipt and credit

RMA with receipt and no credit

RMA with repair RMA with replacement


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Return Material Authorisation


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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 ahold 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.


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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 thatyou 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, selectHold 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.


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Multi-Org Access Control

Improve EfficiencyProcess data across multiple OUs from one responsibilityProcess transactions more efficiently for companies that havecentralized business functions or operate Shared Service Centers

Obtain better information for decision makingObtain a global consolidated view of informationView information, such as supplier sites and customer sites acrossmultiple Ous

Reduce CostsSpeed data entryReduce setup and maintenance of many responsibilities


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Multi-Org Access Control


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What is TCA and its Background TCA = Trading Community Architecture

Provides a single, universal definition of trading partners acrossapplications and job function

TCA is an Data Model it is not a Module

TCA Data ModelHZ Schema

TCA Enabling InfrastructureCommon Party UI, DQM, D&B Integration, APIs

Sales Service MarketingFinancials HR

Oracle E-Business Suite Application Families*

3rd Party

Systems


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What is TCA and its Background

A Trading Community Architecture

is a way to understand who our trading partners interactwith inside and outside the enterprise.

puts a foundation in place for a trading partner model

Linking Suppliers and Customers

Online Marketplace

Shared Service Centers


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TCA Data Model: Major components

Party: defined as people, organizations, groupsor relationships. Represents the participants in the TradingCommunity.

Account: defined as a financial roll-up point.

Contact point: defined as any electronic point thatyou could use as a contact. For example, telephones,URLs, email addresses, etc.

Location: a physical place.

Relationship: establishes the relationship betweenany two parties.


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TCA Integration

97642001 Oracle Order Management Overview

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