Drop Ship Sales Order Across Operating Units

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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.
Here I will discuss following Process
1.Drop Ship SO Creation
2.PO Creation
3.Receiving against PO
4.AP/AR Invoice Creation
5.Intercompany Invoice Creation

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Drop Ship Sales Order Across Operating Units

  1. 1. DROP SHIP ACROSS OPERATING UNITS BIZINSIGHT CONSULTING INC. DROP SHIP ACROSS OPERATING UNITS IN ORACLE EBS Bizinsight Consulting Inc. www.bizinsightinc.com inquiry@bizinsightinc.com
  2. 2. BIZINSIGHT CONSULTING INC. DROP SHIP ACROSS OPERATING UNITS This presentation is about how to 1. Create Drop Ship Sales Order Across the Operating Units in R12i 2. Perform Inter company Transactions.
  3. 3. BIZINSIGHT CONSULTING INC. DROP SHIP ACROSS OPERATING UNITS Topics -  Drop Ship Sales Order  Order Management Sales Order  Requisition  PO Creation (Auto Create)  Receiving  Invoicing (AR/AP)  Inter company Transaction.
  4. 4. BIZINSIGHT CONSULTING INC. DROP SHIP 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 Reservations Once 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 order in Oracle Purchasing after Purchase Release has been run, or modifies the sales order after the PO has been created, use the Order Management Sales Order and Purchase Order Discrepancy Report to note differences between the original sales order and its associated purchase order. With new R12i Change management – Now Changes made to OM will reflect in PO.
  5. 5. BIZINSIGHT CONSULTING INC. DROP SHIP ACROSS OPERATING UNITS 1. 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. 2. 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. 1. 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. 2. 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). 3. 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.
  6. 6. BIZINSIGHT CONSULTING INC. DROP SHIP ACROSS OPERATING UNITS 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
  7. 7. BIZINSIGHT CONSULTING INC. DROP SHIP ACROSS OPERATING UNITS Steps to create drop ship Sales Order 1. 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 – Deferred 4. Run the Workflow Background Process to progress workflow 5. 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.
  8. 8. BIZINSIGHT CONSULTING INC. DROP SHIP ACROSS OPERATING UNITS Create Drop Ship Sales Order in OU- Singapore Distribution Center
  9. 9. BIZINSIGHT CONSULTING INC. DROP SHIP ACROSS OPERATING UNITS Add Line to Drop Ship Sales Order
  10. 10. BIZINSIGHT CONSULTING INC. DROP SHIP ACROSS OPERATING UNITS Make sure that Source Type = External to make it Drop Ship line
  11. 11. BIZINSIGHT CONSULTING INC. DROP SHIP ACROSS OPERATING UNITS Order Line
  12. 12. BIZINSIGHT CONSULTING INC. DROP SHIP ACROSS OPERATING UNITS When we book a drop ship sales order , workflow seeded process check if Drop Ship(Source Type = External ) , if so then progress line workflow to Purchase Release – Deferred Run workflow Background process to Progress the Order line Run the Workflow background Process
  13. 13. BIZINSIGHT CONSULTING INC. DROP SHIP ACROSS OPERATING UNITS Once WBP completes , It insert data into requisition Interface table. Run the Requisition Import CP. Import Process will create requisitions in Purchasing (in Operating Unit – Vision Operations) Run Requisition Import (For Vision Operations)
  14. 14. BIZINSIGHT CONSULTING INC. DROP SHIP ACROSS OPERATING UNITS Requisition /PO Creation (in Vision Operations) Once Requisition is created , you can get it’s details from SO > Action Buttion > Additional Line Information. In my Case I have already Created PO ,. That’s the Reason Document Type = PO.
  15. 15. BIZINSIGHT CONSULTING INC. DROP SHIP ACROSS OPERATING UNITS Query the Requisition. (in Vision Operations) Query for the Requisition Number
  16. 16. BIZINSIGHT CONSULTING INC. DROP SHIP ACROSS OPERATING UNITS Auto Created Purchase Order from Requisition (in Vision Operations) In Purchasing Select the Auto Create to Create Purchase Order from Requisition.
  17. 17. BIZINSIGHT CONSULTING INC. DROP SHIP ACROSS OPERATING UNITS PO Created. (in Vision Operations) Auto create Process will create Purchase Order, Approve the PO.
  18. 18. BIZINSIGHT CONSULTING INC. DROP SHIP ACROSS OPERATING UNITS 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
  19. 19. BIZINSIGHT CONSULTING INC. DROP SHIP ACROSS OPERATING UNITS PO Details (in Vision Operations) Navigate to Drop Ship tab and verify the associated Sales Order and Line.
  20. 20. BIZINSIGHT CONSULTING INC. DROP SHIP ACROSS OPERATING UNITS Receiving against Drop Ship PO (in Vision Operations) Once PO is Approved , Create receipt against it
  21. 21. BIZINSIGHT CONSULTING INC. DROP SHIP ACROSS OPERATING UNITS Receiving against Drop Ship PO (in Vision Operations) Create receipt against PO
  22. 22. BIZINSIGHT CONSULTING INC. DROP SHIP ACROSS OPERATING UNITS 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.
  23. 23. BIZINSIGHT CONSULTING INC. DROP SHIP ACROSS OPERATING UNITS Receiving Summary against Drop Ship PO (in Vision Operations) Navigate Inventory > Receipt > Receipt Transaction Summary and Validate and View the receipt data. There should be 2 transactions. Receive /Deliver.
  24. 24. BIZINSIGHT CONSULTING INC. DROP SHIP ACROSS OPERATING UNITS Receiving Summary against Drop Ship PO (in Vision Operations) Navigate Inventory > Receipt > Receipt Transaction Summary and Validate and View the receipt data.
  25. 25. BIZINSIGHT CONSULTING INC. DROP SHIP ACROSS OPERATING UNITS Drop Ship Sales Order across Operating Units Please Note that once 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 1. ADS (Pay on receipt). 2. Payable Open Interface. 1. ADS (Pay on receipt). – Insert the Data into AP_INVOICES_INTERFACE Table 2. Payable Open Interface. – Process the data in AP_INVOICES_INTERFACE Table and creates invoices in Oracle payables.
  26. 26. BIZINSIGHT CONSULTING INC. DROP SHIP ACROSS OPERATING UNITS 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 below In my Case I have define the Setup “Pay on receipt” (Pay vendor on receipt” , Saving of receipt will Trigger following concurrent programs 1. ADS (Pay on receipt). 2. Payable Open Interface.
  27. 27. BIZINSIGHT CONSULTING INC. DROP SHIP ACROSS OPERATING UNITS Oracle Payable Invoice in Vision Operations.
  28. 28. BIZINSIGHT CONSULTING INC. DROP SHIP ACROSS OPERATING UNITS Oracle Payable Invoice in Vision Operations
  29. 29. BIZINSIGHT CONSULTING INC. DROP SHIP ACROSS OPERATING UNITS Receiving Transaction Process for Drop Ship Sales Order RTP will also Progress the Sales Order line from Ship Activity .
  30. 30. BIZINSIGHT CONSULTING INC. DROP SHIP ACROSS OPERATING UNITS Drop Ship Sales Order across Operating Units
  31. 31. BIZINSIGHT CONSULTING INC. DROP SHIP ACROSS OPERATING UNITS Drop Ship Sales Order across Operating Units 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.
  32. 32. BIZINSIGHT CONSULTING INC. DROP SHIP ACROSS OPERATING UNITS AR Invoices Created (in Singapore Distribution center) Auto Invoice Process will cerates AR invoice
  33. 33. BIZINSIGHT CONSULTING INC. DROP SHIP ACROSS OPERATING UNITS AR Invoices (in Singapore Distribution center).
  34. 34. BIZINSIGHT CONSULTING INC. DROP SHIP ACROSS OPERATING UNITS AR Invoices (in Singapore Distribution center).
  35. 35. BIZINSIGHT CONSULTING INC. DROP SHIP ACROSS OPERATING UNITS Run the Inter-company Process to Create Inter company AR Invoices.
  36. 36. BIZINSIGHT CONSULTING INC. DROP SHIP ACROSS OPERATING UNITS Inter-company process will Create AR Invoices in Vision Operations (Shipping Org).
  37. 37. BIZINSIGHT CONSULTING INC. DROP SHIP ACROSS OPERATING UNITS Inter-company AR Invoice
  38. 38. BIZINSIGHT CONSULTING INC. DROP SHIP ACROSS OPERATING UNITS Inter-company AR Invoice
  39. 39. BIZINSIGHT CONSULTING INC. DROP SHIP ACROSS OPERATING UNITS Inter-company AR Invoice
  40. 40. BIZINSIGHT CONSULTING INC. DROP SHIP ACROSS OPERATING UNITS Inter-company AR Invoice
  41. 41. BIZINSIGHT CONSULTING INC. DROP SHIP ACROSS OPERATING UNITS Inter-company AR Invoice
  42. 42. BIZINSIGHT CONSULTING INC. DROP SHIP ACROSS OPERATING UNITS Inter Company Setup
  43. 43. BIZINSIGHT CONSULTING INC. DROP SHIP ACROSS OPERATING UNITS Inter Company Setup
  44. 44. BIZINSIGHT CONSULTING INC. THANK YOU For addition information or Demo please feel free to reach us at inquiry@bizinsightinc.com. DROP SHIP ACROSS OPERATING UNITS

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