Order Management
Training 2009
Agenda
Overview of Order Management
Overview of Order to Cash Cycle
Overview of Application Integration
Overview of Order Management Process
Order Management Multiple Fulfillment Models
Overview of Order Management
Order Management is a set of supply chain and
demand fulfillment activity performed on customer
orders.
It is a critical business function: it pilots and
monitors the whole flow, which starts with initial
order and ends with the successful delivery of the
products or service.
Order to Cash Lifecycle
The ordering process leads to the shipping of goods which continues with
invoicing the customer and concludes with the receipt of cash and reconciling
of the bank statement.
All orders do not follow this path, there may be some deviations in order
processing.
Order Management
Shipping Execution
Book
Enter
Pick Release
Ship
Confirm
AutoInvoice
Receivables
Invoice
Cash Management
Receipt
Bank Reconciliation
Overview of Application Integration
Customer
Master
Customers
Reserve
Demand
Orders
CRM
Suite
Order
Management
Pricing
Item
Information
Inventory
Shipping
Invoices
Accounting
Receipts
Accounting
Cash Management
General Ledger
Receivables
Order Management Process
Enter or Import
Order
Packing Goods
Order Creation
Defaulting Rules
Pricing
Availability
Shipping
Booking Order
Scheduling
Reservations
Managing Orders
Bulk Updates
Holds
Purging
Accounts
Receivables
Order Management Multiple Fulfillment Models
Order Management supports multiple fulfillment models, some of
which are:
Ship from stock
Make to Order
Internal Order
Configure to Order
Back to Back Orders
Drop Ship to Customer
Ship from Stock
Packing
Shipping
Customer places
purchase order
Inventory
Sales Order
Order
Management
Invoice
generation
Accounts
Receivables
Make to Order
Order
Management
Inventory
Packing and
Shipping
Work in Process
Receivables and Cash
Management
Master Schedule / plan item
manufacture
Internal Order
Purchasing
Book sales
order
View as sales
order
Internal
Requisition
Ship
goods
Order Import
Approval of Internal
Requisition
Receive goods
by requesting
org
Configure to Order, ATO, PTO
Order
Management
Final Assembly
Assembly /
Work in
Progress
Inventory
Packing and
Shipping
Create configuration
items
Master Schedule / plan
configuration items
Receivables and Cash
Management
Back to Back Orders
Purchase Order
Customer
Customer Purchase
Order
Supply of
goods
Procurement
Order Management
Sales
Order
Supplier
Production
Pegging or
reservation
against sales
order
Packing, Shipping
and Receivables
Drop Ship to Customer
Drop shipments is a method of fulfilling sales orders by selling products without the order taker
handling, stocking, or delivering them. The seller buys a product and the supplier ships the
product directly to the sellers customer. Drop shipments are done because of the following
reasons:
Customer requires an item that is not normally stocked
Customer requires a large quantity of the item which is not available with you
It is more economical when the supplier ships directly to the customer
Goods ship to
Supplier
Customer
Invoice
Invoice
Purchase
Order
Sales Order
Seller
Overview of Order Entry
Agenda
Overview of Order Creation Methods
Entering Header Information
Entering Line Information
Overview of Order Scheduling
Order Management Multiple Fulfillment Models
Order Creation Methods
Enter an order manually using the Sales Order forms.
Create a new order by copying an open, closed or canceled order. Orders created
from the copy function can be modified as needed.
Use Order Import to load orders that come from your EDI transactions, external
systems or other Oracle applications such as Internal orders from Purchasing or
Material Charge Lines from Service.
Convert P&A or query into
Order, Convert Quote to
Order, Enter Order, Order
against BSA
Copy an
order
EDI
Import from
other systems / CRM
Order Import
Customer Service
Representative
Order
Entering Header Information
Payment Terms (2/10 Net 30)
Warehouse
Shipping Method
Freight Terms
FOB
Shipment Priority
Shipping Instructions
Packing Instructions
Payment Type Credit Card
Entering Line Information
Line Number Intelligence
1.1.1.1.1
Ordered Item
Item Quantity
Item Unit of Measure
Line Pricing Fields
Unit Price/Unit Selling Price
Extended Price/Line Total
List Price
Line Date Fields
Request Date
Promise Date
Schedule Ship Date
Schedule Arrival Date
Entering Line Shipping Information
Warehouse
Ship Method
Shipment Priority
Line Source Type
Internal
External
Available to Promise (ATP)
Uncommitted and planned production inventory that can be promised to the
customer. ATP calculations are based on:
On-hand inventory
Expected incoming supply
Expected demand
Entering Sets
The following groupings are available:
Line sets
Ship sets
Arrival sets
Fulfillment sets
Automatically put Lines into sets
Shipping can break sets
Scheduling Orders
What does scheduling do?
Sets the Order lines Ship and Arrival schedule dates.
Passes the demand to Inventory. The Sales order demand consumes the
items forecast.
It can place a Reservation if the Orders Scheduled Ship Date is within the
value entered for the OM: Reservation Time Fence profile option.
It calculates the delivery lead time and ship method (if you have set up
Inter-Location Transit Times).
Place Demand
(Schedule)
Order Clerk
Inventory
Scheduling Options
On-line at sales order entry
Auto Scheduling
Using Tools menu or right mouse click to select Schedule,
Unschedule, Reserve, or Unreserve
Workflow Process
Schedule-Line
Create Supply-Line process
Concurrent Program
Scheduling Orders - Available to Promise
Click Availability to see if you have enough inventory to meet the sales
order demand.
The ATP Rule, item attribute, that is associated with the line item, is
used to calculate inventory that will be available by the Schedule Ship
Date.
Check ATP using the Availability button
Order Clerk
Inventory
Item Substitution at Scheduling
Order Management enables you to automatically substitute items during scheduling
based on the recommendations of Global Order Promising (GOP). Oracle Advanced
Planning and Scheduling (APS) and GOP must be fully installed and implemented to
perform item substitutions.
Only automatic substitutions recommended by Oracle GOP are supported during order
line scheduling.
If you perform an item substitution and then un-scheduling of the line occurs, the
substituted item still remains on the order line. There is no automatic facility to update order
lines back to the original items, this must be done manually.
Line Items
Scheduling
Automatic
Substitution
Scheduling - Reserve
Reserving inventory assures that the quantity will be available when the order line is
Released for shipping.
The Items Reservation is removed when inventory is decremented for the shipped
quantities or if the order line is canceled.
Place Reservation
Order Clerk
Inventory
Overview of Pricing
Agenda
Overview of Order Creation Methods
Overview of Pricing Concepts
Overview of Pricing Engine
Overview of Price List
Overview of Qualifiers
Overview of Modifiers
Pricing in Order to Cash Cycle
In Order Management the pricing engine prices the items after the order is entered or
booked (depending on the pricing setup).
Once the order is booked, it proceeds through the workflow process. If it is a shipping item
and the quantities are available, the order is processed by Shipping Execution.
During shipping, the freight and special charges can be calculated and the price of the item
is adjusted accordingly.
Order Management
Enter and Price
Orders
Receivables
Shipping Execution
Book
Orders
Pick Release
Pricing
Ship Confirm
(F&SC)
AutoInvoice
Cash Management
Bank Reconciliation
Invoice
Receiving
payment
Overview of Pricing Concepts
Items, Item Categories or Services
Determine what is being priced
Qualifiers
Determine eligibility rules
Determine who receives the price benefits
Modifiers
Pricing actions that can be used to adjust the list price
Overview of Pricing Concepts
When the sales order is entered, the pricing engine is called and reads the relevant price
list or pricing agreement.
The appropriate modifiers are then applied to the base price and the final selling price is
sent to the sales order line or the calling application.
The Adjustments window displays the original price, applied modifiers, and the final price.
Entered order
line
Price list or
agreement
Modifiers
Unit selling price
Overview of the Pricing Engine
The pricing engine consists of a search engine and a calculation engine.
From the pricing request, the pricing engine evaluates the appropriate modifiers and price lists,
resolves incompatibility issues, retrieves the list price, and calculates the unit selling price and
adjustments.
The search engine receives pricing information from entities like price lists, modifiers, qualifiers,
formulas, products and pricing attributes.
Calling Application (OM, CRM)
Pricing Request
Pricing Engine
4
Pricing
Entities
Search Engine
Calculation Engine
Returns price and
adjustments
Overview of Price Lists
Price Lists contains prices for various items and services and has the following
characteristics:
The price of an item can be a unit price, a percent price or a formula
Price list information includes effective dates, currency, shipping information
Price of item is sent from price
list to sales order / calling
application
Price List
Sales Order
Overview of Qualifiers
Determines eligibility for the price list or modifier
Define eligibility by:
Customers
Customer groups
Order type
Order amount
Create qualifier groups
Qualifiers can be created at:
List level
Line level
Overview of Modifiers
Modifiers are used to adjust list price
Some examples of modifier types:
Discounts
Surcharges
Freight and special charges
Price Break Header
Modifier controls are:
Events and Phases
Buckets and Incompatibility
Effectivity dates
Overview of Freight and Special Charges Modifiers
Charges for transporting goods
Automatically derived from freight costs
Seeded Freight and Special Charges:
Freight
Handling
Insurance
Export fees
Miscellaneous
Overview of Shipping
Agenda
Overview of Shipping
Overview of Shipping Concepts
Overview of Pick Release
Overview of Pick Confirm and Staging Subinventory
Overview of Ship Confirmation
Overview of deliveries and Delivery Lines
Overview of Packing LPNs/Containers
Overview of Trips
Overview of Shipping Transaction Form
Overview of Shipping
You run Pick Release for orders booked from Oracle Order Management.
After the Pick Release process is executed, the orders are moved from inventory and
dropped in the staging area before being shipped.
When the orders are shipped, Oracle Shipping Execution decrements Oracle Inventory
and updates the sales order line.
After the sales order line is updated, the lines proceed through Auto Invoice to Oracle
Accounts Receivable.
Shipping
Order
Management
Staging
Picking
Inventory
Management
Accounts
Receivable
Shipping
Overview of Shipping Concepts
A trip is carrier specific and includes at least two stops a pick-up and a drop-off.
A stop is a point along the route of the trip and can consist of a pick-up, drop-off, or both.
A delivery is a consolidation of sales order lines based on at least the customer, ship from
location, and ultimate ship to location.
A delivery leg is represented by a bill of lading and consists of at least two stops and one
leg or trip.
Trip 1
Delivery 1 & Delivery 2
Stop 1
Delivery 2
Stop 2
Stop 3
Overview of Pick Release
Release Rules: Defining Release Rules enables you to specify the criteria by which the
Sales Orders are selected for Pick Release.
Release Sequence Rules: Defining the Release Sequence Rules enables you to specify
the order in which the available inventory will be allocated to the Sales Order line that has
been pick released.
Pick Slip Grouping Rules : Defining Pick Slip Grouping Rules enables you to specify
the criteria by which the Pick Slip will be grouped.
Which Orders to fill?
In what order to allocate
inventory?
Release Sequence Rules
How to group on the
Pick Slip?
Release Rules
Pick Slip Grouping Rules
Pick Confirm and Staging Subinventory
A staging subinventory is a logical or physical location where orders are placed
before loading.
Pick Confirm is a process that is run to systematically transfer material from a
source inventory location to a shipping staging subinventory.
Source
Location
Transfer
Staging
Subinventory
Overview of Ship Confirmation
You run the Ship Confirm process to indicate that the items are loaded onto the carrier
from the staging location.
When you run the Ship Confirm process, the system decrements Oracle inventory and
updates the sales order line status.
This information can then be transferred through AutoInvoice to Oracle Accounts
Receivables for invoicing.
Finally, accounting information can be sent to the general ledger from Oracle Inventory
and Oracle Accounts Receivables.
Staging
Subinventory
Ship
Confirm
Overview of Deliveries and Delivery Lines
Delivery Lines:
Sales order lines that have been released for shipping are called delivery lines and can
be used to create a delivery.
Deliveries:
A delivery consists of set delivery lines that are scheduled to be shipped to a customers
ship-to location on a specific date and time.
In a delivery, you can include items from different sales orders as well as back orders.
You can either manually or automatically group delivery lines to create a delivery.
If a delivery is autocreated, the delivery lines are grouped together by the mandatory
default criteria, ship-from location and ship-to Location.
Delivery Line
Delivery Line
Delivery Line
Delivery
Overview of Packing LPNs/Containers
Containers, also called as License Plate Numbers(LPNs), are packed with delivery lines
that are delivered to the customer.
You can create and manage LPNs at any point in the shipping process.
Containers (LPNs)
Auto-Pack
Packing
Workbench
Manual
Packing
Overview of Trips
A trip is an instance of a specific shipment originating from and moving to a particular
location.
A trip is carrier specific and must contain at least two stops a pick-up and a drop-off.
A trip can also have intermediate stops, which can be either a pick-up stop or a drop-off
stop.
Trip
Pick-Up
Stop
Pick-Up/ Drop-Off
Stop
Pick-Up/ Drop-Off
Stop
Drop-Off
Stop
Overview of Shipping Transactions Form
The Shipping Transaction form enables you to consolidate planning, executing and
viewing all aspects of the Shipping Process.
The user interface consists of the Query Manager and Data Manager.
Shipping Transaction
Form
Query Manager
Data Manager
Maintain
Information
Search
Perform
Shipping Entities
Trips
Stops
Deliveries
Delivery Lines
Containers/LPNs
Shipping Functions
