Dropship across ou

04/10/23 eoracleapps.blogspot.com 1

Drop Ship Sales Order Across Operating Unit R12i

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Introduction

This presentation is about how to Create Drop Ship Sales Order Across the Operating Units in R12i and then how to perform Inter company Transactions.

I am Oracle Apps/BPEL/Workflow Analyst and blogger with 14+ Years of Experience.

[email protected] Blog – eoracleapps.blogspot.com


Topics of Discussion

Drop Ship Sales Order Order Management Sales Order Requisition PO Creation (Auto Create) Receiving Invoicing (AR/AP) Inter company Transaction.


Drop Ship Sales Order across Operating Units

Drop shipping functionality enables you to take an order from your customer and fulfill it directly from your supplier's site. Order Management enables you to enter drop ship sales orders and lines for standard, model and kit, and configured items, although you currently cannot perform a drop shipment for Ship Model Complete (SMC) PTO's.

You can receive orders for items that you do not stock or for which you lack sufficient inventory, and have a supplier provide the items directly to your customer.

This Presentation is more about Drop Ship across OUs , I am not discussing about What is drop ship and How to create drop ship Orders here.

When processing drop shipments for orders, you can:• Optionally receive and electronically process Advanced Shipping Notices (ASN).

• Automatically perform logical receipts upon notification of shipment

• Perform Drop Ship for both make and buy items, and automatically default the source type of External for order lines which need to be drop shipped



ReservationsOnce an order line has been specified as an External order, Order

Management does not allow reservations to be placed against the order line.

Both standard and expense items may be drop shipped, although drop shipments currently support a Destination Type (item attribute) of Expense and

Inventory only.

Change Management If the buyer makes changes to the requisition or purchase orderin Oracle Purchasing after Purchase Release has been run, or modifiesthe sales order after the PO has been created, use the OrderManagement Sales Order and Purchase Order Discrepancy Report tonote differences between the original sales order and its associatedpurchase order.

With new R12i Change management – Now Changes made to OM will reflect in PO.Please refer similar posts on my blog



You can now Drop Ship across Ledgers, operating units, or legal entities. A common scenario involves manufacturing facilities in some countries, sales organizations in others, and financial companies in several others. These entity structures allow multinationals to avail themselves of the benefits of each legal environment in which they are organized. They also allow companies to provide products to market quickly and profitably, taking advantage of regional 'hub' operations that rationalize product demand and control supply sourcing in a centralized fashion.

The ability to drop-ship goods across Ledgers, operating units, or legal entities is a major business requirement for today's businesses. Formerly it was not possible to drop ship across operating units and Ledgers in Oracle Applications. The introduction of cross operating unit drop ships raised the need for hybrid drop shipments where the sales order is drop shipped to one, but not both, of the organizations involved in executing the transaction



Drop Ship across ledgers, operating units, or legal entities. With the enhanced Drop Ship, functionality, you can choose a warehouse that belongs to a different operating unit (OU), legal entity, or ledgers than the order taking organization.

For drop ship lines, the cost of the item is taken from the organization that has been specified in the Finance Options window (Financial System Parameters).

The Process flow for drop ship across Ledger remains the same as the existing drop ship process, except that the requisitions and purchase orders are now created in different operating units. Intercompany transactions are performed when the logical receipt and delivery transactions occur for the purchase order.


Test Case

Create Drop Ship Sales Order in Operating Unit – Singapore Distribution Center with Warehouse V1 ( belongs to Operating Unit -Vision Operations).

Book and Progress the Drop Ship Sales Order Line.

Since Warehouse associated with the Sales Order belongs to Operating Unit - Vision Operations , System will Create Purchase Requisition and PO in Operating Unit – Vision Operations

Receive goods in V1 Against the PO.

Receiving Transaction Processor (RTP) , will Created AP Invoice in Operating Unit – Vision Operations .

Once Order Line Fulfilled , It Push the data in AR Invoice Interface and execution of Auto-Invoice Results in creation of Receivable Invoice in Operating Unit – Singapore Distribution Center.

Run Inter-company AR Invoice Creation and it will Create Inter-company AR Invoice in Operating Unit – Vision Operations.

Selling Org – Singapore Distribution Center Shipping Org – Vision Operations



Steps For a Drop Ship Sales Order1. Create Sales Order, enter Source Type = External in Lines.2. Book the Sales Order .3. Workflow Seeded process detect it is Drop Ship(Source Type) and moves

the line to Purchase Release – Deferred4. Run the Workflow Background Process to progress workflow5. Run Requisition Import. 6. Create PO ( Auto Create).7. Receive PO.8. RTP will Push the Workflow for Invoicing and finally close.9. For Inter company we need to run additional programs.


Create Sales Order (in Singapore Distribution Center)

Create Drop Ship Sales Order in OU- Singapore Distribution Center


Create Sales Order Line (in Singapore Distribution Center)

Add Line to Drop Ship Sales Order


Sales Order Line for Drop Ship (in Singapore Distribution Center)

Order Line


Sales Order Line for Drop Ship (in Singapore Distribution Center)

Make sure that Source Type = External to make it Drop Ship line


Run the Workflow background Process

When we books a Drop Ship Sales Order Workflow Seeded process detect it is Drop Ship(Source Type) and moves the line to Purchase Release – Deferred

Run workflow Background process to Progress the Order line


Run Requisition Import (For Vision Operations)

Once WBP completes , It insert data into requisition Interface table.Run the Requisition Import ,Import Process will create requisitions in Purchasing (in Operating Unit – Vision Operations)


Requisition /PO Creation (in Vision Operations)

Once Requisition is created , you can get it’s details from Action > Additional Line Information.In my Case I have already Created PO ,. That’s the Reason Document Type = PO.


Query the Requisition. (in Vision Operations)

Query for the Requisition Number


Auto Created Purchase Order from Requisition (in Vision Operations)

In Purchasing Select the Auto Create to Create Purchase Order from Requisition.


PO Created. (in Vision Operations)

Auto create Process will create Purchase Order, Approve the PO.


PO Details (in Vision Operations)

Open the Lines and verify that PO is associated with Correct receiving Org as well as Marked as Drop Ship PO


PO Details (in Vision Operations)

Navigate to Drop Ship tab and verify the associated Sales Order and Line.


Receiving against Drop Ship PO (in Vision Operations)

Once PO is Approved , Create receipt against it


Receiving against Drop Ship PO (in Vision Operations)

Create receipt against PO


Receiving Summary against Drop Ship PO (in Vision Operations)

Once receipt is Created , go to Receipt Transaction Summary and Validate and View the receipt data.



Navigate Inventory > Receipt > Receipt Transaction Summary and Validate and View the receipt data.There should be 2 transactions. Receive /Deliver.



Navigate Inventory > Receipt > Receipt Transaction Summary and Validate and View the receipt data.



Please Note that when we Save the receipt , System submit the receiving Transaction Processor (RTP) as well as other concurrent program based on your setup.

In my Case I have define the Setup “Pay on receipt” (Pay vendor on receipt” , Saving of receipt will Trigger following concurrent programs

ADS (Pay on receipt). Payable Open Interface.

ADS (Pay on receipt). – Insert the Data into AP_INVOICES_INTERFACE Table

Payable Open Interface. – Process the data in AP_INVOICES_INTERFACE Table and creates invoices in Oracle payables.


Receiving Transaction Process for Drop Ship Sales Order

Please Note that when we Save the receipt , System submit the receiving Transaction Processor (RTP)as shown belowIn my Case I have define the Setup “Pay on receipt” (Pay vendor on receipt” , Saving of receipt will Trigger following concurrent programs1. ADS (Pay on receipt).2. Payable Open Interface.


Oracle Payable Invoice in Vision Operations.


Oracle Payable Invoice in Vision Operations


Receiving Transaction Process for Drop Ship Sales Order

RTP will also Progress the Sales Order line from Ship Activity .



Once the Sales Order line Progress the Workflow Invoicing Activity , It push the Invoicing data from Order management to AR Invoice Interface tables. Run Auto Invoice to Process the Invoicing data.


AR Invoices Created (in Singapore Distribution center)

Auto Invoice Process will cerates AR invoice


AR Invoices (in Singapore Distribution center).


Run the Inter-company Process to Create Inter company AR Invoices.


Inter-company process will Create AR Invoices in Vision Operations (Shipping Org).


Inter-company AR Invoice


Inter Company Setup


Q&A - Drop Ship Sales Order across Operating Units

Feel free to contact me for any question related to this Topic

Dropship across ou

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