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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Set ups for Order Management
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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Set ups for Order Management
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