Crediting Over-Shipped Quantities for Referenced RMAs in R12.1

An Oracle White Paper March 2010

Summary Existing functionality in Order Management, allows users to book a (sales order referenced) RMA for a quantity based on the originating ordered Quantity. However, businesses have requirements to book RMAs based on shipped quantities, especially in the case of over-shipments, in addition to the current provision based on ordered quantities. Now in Release 12.1.1, users are provided with an additional option of raising RMAs based on the shipped quantity, if the Invoicing basis is set to ship quantity. For scenarios where the system parameter is based on Ordered Quantity, the existing behavior for RMA will continue. This white paper provides worked examples and background discussions relating to this new Order Management Release 12.1.1 feature to aid in its understanding and potential business implementation.

Background The facility to invoice sales orders based on actual shipped quantities, as apposed to ordered quantities has been an available feature in the Order Management application for some time. However, since the early inception of this feature, a functional gap was recognised whereby attempts to create and book an associated referenced RMA with one of these over-shipped sales orders was restricted.

Setup I. Set the system parameter Overshipment Invoice Basis

Be advised this system parameter has been migrated from a standard profile option setting in the new 12.1 release. This is documented in related Note 393646.1. Additionally, it should be noted this configuration can be overridden at the Customer-level from the Order Management tab. The two related value settings are detailed below. Invoice Shipped Quantity Invoice the actual Shipped Quantity in the circumstance of a material over-shipment. Invoice Ordered Quantity Irrespective of any over-shipment of sales orders generate associated invoices based on their actual entered Ordered Quantity.

Worked Examples To re-inforce this new feature of referenced RMAs we shall progress with worked examples of both the legacy 11.5.10 functionality, highlighting the restriction of referenced RMA ordered quanties, together with a complete order-to-cash example of the new R12.1 feature allowing entry of referenced RMAs based on originating shipped quantities.

Release 11.5.10

A. Set the OM: Overshipment Invoice Basis profile option to Invoice Shipped Quantity

B. Enter a new sales order with one line, ordered quantity = 3.

Book and pick release this new sales order. On Ship Confirmation over-ship the Delivery line setting the Shipped Quantity = 4.

Navigate Profile -> System from the

System Administrator responsibility

C. Progress this order line through Invoicing. The Invoice Interface workflow activity will place appropriate records in the AR invoice interface tables awaiting processing by the AR AutoInvoice concurrent program. Run AutoInvoice to create the associated customer invoice.

NOTE: Shipped Quantity greater

than Ordered Quantity. Ie. Sales

order has been overshipped

Order line has progressed

through invoicing with an over-

shipped invoice quantity

D. Run AutoInvoice creating the AR invoice.

The AR invoice quantity is determined by the associated Overshipment Invoice Basis profile option. In this instance the invoicing basis is Invoice on Shipped Quantity, hence a quantity of 4 rather than the ordered quantity of 3.

Invoice line quantity = 4. ie.

Invoice quantity has been taken

from the sales order shipped

quantity as per profile option

E. Now progress to creating an associated reference return material authorisation (RMA) for this sales order.

Add a single line to this (referenced) RMA. Note, this line is referenced back to the originating sales order (number 62812). Enter an (ordered) quantity based on the sales orders shipped/invoice quantity (4), rather than the ordered quantity (3).

RMA is referenced back to

originating Order Number 62812

F. Attempt to book this new (referenced) RMA. Booking attempt fails since (legacy) pre-R12.1 functionality disallows processing of referenced RMAs for any other quantity other than the originating Ordered Quantity.

(NEW) Release 12.1

Let us now progress through ther exact same testcase scenario this time in the new R12.1 environment for comparative purposes and a reflection of the new RMA over-shipment feature. A. Set the (new) OM: Overshipment Invoice Basis system parameter to Invoice Shipped Quantity. See Note 393646.1 for details on all related migrated 11.5.10 profile options.

B. Enter a new sales order with one line, ordered quantity = 3.

Book and pick release this new sales order. On Ship Confirmation over-ship the Delivery line setting the Shipped Quantity = 4.

C. Progress this order line through Invoicing. The Invoice Interface workflow activity will place appropriate records in the AR invoice interface tables awaiting processing by the AR AutoInvoice concurrent program. Run AutoInvoice to create the associated customer invoice.

NOTE: Shipped Quantity greater

than Ordered Quantity. Ie. Sales

order has been overshipped

Order line has progressed

through invoicing with an over-

shipped invoice quantity

D. Run AutoInvoice creating the AR invoice.

The AR invoice quantity is determined by the associated Overshipment Invoice Basis system parameter. In this instance the invoicing basis is Invoice on Shipped Quantity, hence a quantity of 4 rather than the ordered quantity of 3.

Invoice line quantity = 4. ie. Invoice

quantity has been taken from the

sales order shipped quantity as per

(new) system parameter

E. Now progress to creating an associated referenced return material authorisation (RMA) for this sales order.

Add a single line to this (referenced) RMA. Note, this line is referenced back to the originating sales order (number 66649). Enter an (ordered) quantity based on the originating sales orders shipped/invoice quantity (4), rather than the ordered quantity (3).

RMA is referenced back to

originating Order Number 66649

F. Now, attempt to book this new (referenced) RMA.

Booking is successful!! The new R12.1 functionality allows booking of referenced RMAs based on the originating sales orders shipped/invoiced quantity, rather than restricting RMA quantities to the ordered quantity.

G. Now, let us continue business flows to verifiy the creation of the associated Credit Note. Run the workflow background process to have this RMA line progress through to invoice interfacing. Run AutoInvoice to create the associated Credit Note.

New Credit Memo 10038012 created

With a single associated line Quantity = 4.

Crediting Over-Shipped Quantities for referenced RMAs in R12.1

Author: Robert L. Barker

Senior Technical Support Engineer

Global Product Support

Special thanks to Aditya Mallik, Manager of OM Development team for his great

help in reviewing and providing valuable suggestions for improving this whitepaper.

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