Oracle EBS R12 Order Management Notes

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Oracle Applications R12
Supply Chain Management
ORDER MANAGEMENT
VERSION 5.0
By Mr. Krishna 10+ Yrs
Oracle Certified Expert
Communication Address:
Tech Leads,
SR Nagar Branch
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INDEX
Table of Contents Page No
1. Creating Order Management Responsibility and attach it to user........................................ 4
2. OM Profile Options................................................................................................................ 5
3. Shipping Parameters.
a) Release Sequence Rule.............................................................................................. 9
b) Pick Slip Grouping Rule............................................................................................. 10
c) Release Rule.............................................................................................................. 11
d) Define default stage sub inventory........................................................................... 11
e) Document Set for Pick Release................................................................................. 12
f) Document Set for Ship Confirm................................................................................ 13
4. Creating AR Responsibility and attach it to user.................................................................. 20
5. AR Profile Options................................................................................................................. 21
6. a) AR System Options........................................................................................................... 24
b) AR Transaction Type......................................................................................................... 27
c) Invoice Source................................................................................................................... 28
7. Transaction Types for OM
a) Define Line................................................................................................................. 28
b) Define Header............................................................................................................ 29
c) Assigning Line to the Header..................................................................................... 31
8. Define Document Sequence.................................................................................................. 32
9. Define Document Category................................................................................................... 33
10. Assign Document Sequence to Category and Transaction Type.......................................... 33
11. Define Grants and Roles and assign to user........................................................................ 35
12. Payment Terms.................................................................................................................... 38
13. Define Profile Class for Customer........................................................................................ 41
14. Define Customer.................................................................................................................. 43
15. OM System Parameters....................................................................................................... 46
16. Define Pricing Responsibility................................................................................................. 47
17. Set Profile Options for Pricing Responsibility...................................................................... 48
18. Set QP Item Validation Profile Option................................................................................. 48
19. Define Primary Price List..................................................................................................... 49
20. Define Secondary Price List and assign to Primary Price List, Transaction type................. 49
21. Run ‘Replicate seed data report’. (xle call raised error)..................................................... 54

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22. Define Sales person............................................................................................................ 55
23. Define Shipping Method/Define Carrier and assign to transaction type........................... 56
24. Credit Holds........................................................................................................................ 58
25. Qualifiers and Modifiers..................................................................................................... 64
26. Sales Order Types............................................................................................................... 65
a) Standard Sales Order/ OTC Cycle/O2C Cycle (Order to Cash Cycle)..................... 69
b) RMA Sales Order.................................................................................................... 86
c) Drop Ship Sales Order............................................................................................ 90
d) Back to Back Sales Order........................................................................................ 111
e) IR ISO Sales Order................................................................................................... 124
27. ATP/CTP.............................................................................................................................. 141
28. Inventory Picking Rule........................................................................................................ 145
29. Pegging (Soft/Hard)............................................................................................................ 146
30. Accounting Impact.............................................................................................................. 146
31. Ship set/Arrival set/Fulfillment set..................................................................................... 147
32. Sales Order/RMA Workflows.............................................................................................. 148
33. Defaulting Rules (optional)................................................................................................ 150
34. Processing Constraints (optional)....................................................................................... 155
35. Miscellaneous Concepts..................................................................................................... 157
36. Mockup Interview Questions............................................................................................. 157

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Order Management
1. Creating Responsibility and assigning it to user:
[N]: System Administrator->Security->Responsibility->Define
 Enter Responsibility name <- XXXS Order Management Super User.
 Enter Application Name <- Order Management
 Enter Responsibility Key <- As u wish
 Data Group <- Standard.
 Application <- Order Management
 Menu <- ADS _OM _Super Menu
 Request Group Name <- OM Concurrent Programs
Application <- Order Management

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2. OM Profile Options
[N]: System Administrator -> Profile -> System
 HR: Business Group: TL IND Business Group
 HR: Security Profile: TL IND Business Group
 GL: Ledger Name: TL IND PL
 HR: User Type: HR User
 MO: Operating Unit: TL South Operating Unit.
 MO: Default Operating Unit: TL South Operating Unit
Run ‘Multi-Org Setup validation Report’ concurrent program from system administrator, if you
are implementing MOAC (Multi Org Access Control)

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3. Shipping Parameters:
a) Release Sequence Rule:
Based on the given priority sales orders released, Release Seq Rule is based on five
attributes.
The order in which sales orders are filled could be very important. If a company has a
problem of running out of material before all of their orders have been filled it is very
important that they have filled their most important orders first.
 Order number
 Outstanding invoice value
 Schedule date
 Departure date
 Shipment Priority

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[N]: OM-> Setup -> Shipping -> Picking -> Define Release Sequence Rule
b) Pick Slip Grouping Rule
 Grouping rules allow you to specify the criteria by which released picking lines are
grouped.
 Select from the following criteria: order number, carrier, sub inventory, shipment
priority, customer, departure, ship to, and delivery.
 If you select Order Number, for example, all picking lines with the same order number
are grouped on the same pick slip.
 If you select group by Carrier and Customer, all picking lines with the same freight
carrier and customer are grouped on a pick slip.

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[N]: OM-> Setup -> Shipping -> Picking ->Define Pick Slip Grouping Rule
c) Release Rule (optional)
Bulk Release of the sales orders.
[N]: OM->Setup->Shipping->Picking-> Define Release Rule Form.
d) Define default stage Sub Inventory
After picking, material will be moved from source sub inventory to Staging area (I.e.
material is ready to ship)

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[N]: Inventory-> Setup-> Organizations- > Sub inventories.
e) Document Set For Pick Release
After the picking activity, list of reports generated automatically based on this setup.
[N]: OM->Setup -> Shipping -> Documents -> Document Sets
Reports
1. Pick slip report.
2. Shipping Exception Report.

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f) Document Set For Ship Confirm
After the shipping activity, list of reports generated automatically based on this setup
[N]: OM->Setup-> Shipping -> Documents -> Document Sets
Reports
1. Shipping Exception Report.
2. Pack slip report.
3. Commercial invoice.
4. Bill of lading.
5. Vehicle Load sheet details.
6. Interface trip stop.

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Shipping Parameters:
[N]: Setup-> Shipping-> Shipping Parameters
 General:
You can define the shipping weight and volume unit of measure classes, criteria for
calculating percent fill basis like weight, volume, or quantity, and shipping events at which
export compliance screening will be performed. (Screening is only applicable if Oracle
Shipping Execution is integrated with a third party ITM partner application).

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 Pick Release:
You can define Release Sequence rules and Pick Slip Grouping rules, limiting the number of
lines in the pick slip, printing behavior, document set to be printed at pick release, default
staging sub inventory, locator, and decision points to auto create delivery, auto allocation,
enforcing ship sets and ship models, and task planning at the time of pick release.

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 Shipping Transaction:
You can define document sets to be printed at the time of ship confirm, ship confirm rule,
auto-pack options, goods dispatched (COGS) account and whether to enforce packing in
containers.

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 Delivery: You can define the attributes forming the basis of delivery grouping for the
organization.

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**Auto Allocate:
 Enable : After picking automatically pick wave move order generated and material will
be automatically moved from source sub inventory to the staging area.
 Disable: After picking pick wave move order generated but manually move stock from
source sub inventory to the staging area.
**Auto create delivery:
 Enable: After picking automatically delivery numbers generated.
 Disable: After picking manually delivery numbers has to be generated.
LPN Number: License Plate Number is a unique number provided to containers.
Note: LPN Number generation is possible for only WMS Enabled organizations
Navigation to verify Inv org is WMS enable or not
[N]: Inventory -> Setup -> Organizations -> Query Inv org
WMS Enable:
 Inventory organization is WMS Enabled
 Inventory organization is not WMS Enabled

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4. Creating AR Responsibility and attach it to user

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5. AR Profile Options

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6. A) AR Systems Options:
[N]: AR-> Setup-> System-> System Options
Realized Gains and Realized Losses Accounts:
Receivables posts changes in your functional currency to your Realized Gains or Losses
account in your general ledger if there are differences in exchange rate gains or losses.

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B) Define AR Transaction type
[N]: AR -> Setup -> Transaction type

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C) Define Invoice Source
[N]: AR-> Setup->Transactions-> Sources
7. Transaction Types For OM
A) Define Line Transaction Type:
[N]: OM->Setup->Transaction Types->Define
Transaction types are used to associate workflows for various phases of sales order.
Also we can assign some of the values here that become default values on the sales order

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B) Define Header (Order) Transaction Type:
[N]: OM->Setup->Transaction Types->Define

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 Assign Line to the header
Click on ‘Assign Line Flows’

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8. Define Document Sequence
Automatically generates sales order numbers. Document sequence must be assigned to the
transaction type (order type).
[N]: OM->Setup->Documents-> Define

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9. Define Document Category
[N]: OM->Setup->Documents->Categories
10. Assign Document Sequence to Category and Transaction Type
[N]: OM->Setup->Documents->Assign

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11. Define Grants and Roles and Assign to User
Granting picker and shipper privileges to the user.
A) Define Role for the Picker and Shipper :
[N]: OM->Setup->Shipping->Grants and Role definitions->Define Roles
Disable all the functions under ‘Trips, Stops, Deliveries, General, Message’
Under Lines/LPNs
Enable ‘Launch Pick Release’ Function mandatorily.

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Disable all the functions under ‘Trips, Stops, Lines/LPNs, General and Message’
Under Deliveries
Enable ‘Ship Confirm’ Function mandatorily

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B) Assign Roles (Picker, Shipper) to the user
[N]: OM->Setup->Shipping->Grants and Role definitions->Grants

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12. Payment Terms.
You can define standard payment terms for your customers to specify the due date and discount
percent for their open items. Payment terms include a discount percent for early payment and you can
assign multiple discounts to each payment term line.
For example 3% 20 Net 30.
[N]: OM->Setup->Orders->Payment terms
Open Transaction Type & Enter information in Main, Shipping & Finance Tabs

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13. Define Profile Class for Customer
[N]: OM->Customers-> Profile Class
**Dunning Letters: Sent to the customer incase of late payments.

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“Save” Below screen appears & Select “Okay”
14. Define Customer
[N]: OM->Customers->Standard
(Applicable to 12.1.1) Note: Define your own profile by providing credit limit to different
currencies (at least for 3 currencies) and update “Default” Profile Class Currencies with some
value and use your own profile class while defining the customer.

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Click on Apply

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15. **OM System Parameters
Items defined in the inventory will flow to the order management based on this setup.
This configuration links between inventory and order management.
[N]: OM->Setup->System Parameters->values

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16. Define Pricing Responsibility

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17. Set Profile Options for Pricing Responsibility.
18. **Set QP Item Validation Profile Option.
Items are defined in the inventory will flow to the pricing because of this setup
This is the link between inventory and advance pricing.
[N]: System administrator -> Profile ->System

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19. Define Primary Price List.
[N]: Pricing Responsibility-> Price Lists-> Price List Setup
Note: If the item price is fixed then provide item selling prices in primary price list itself.
If the item prices are fluctuating through the year then provide item selling prices in
secondary price list and attach to primary price list
20. Define Secondary Price List and assign to Primary Price List, Transaction type.
[N]: Pricing Responsibility -> Price Lists-> Price List Setup
Precedence: Lowest precedence secondary price list item price system picks first

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21. Run ‘Replicate seed data report’. (xle call raised error)
[N]: System administrator -> Submit new request->Single Request

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22. Define Sales person.
[N]: OM->Setup->Sales->Sales Person
Select New

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23. Define Shipping Method/Define Carrier: (Transportation company) and assign
to transaction type.
[N]: OM->Setup>Shipping>Freight carriers, Cost types->Freight carrier

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24. Credit Check/Credit Holds.
In Oracle Order management, you can setup Credit limit (which is nothing but the
overall credit limit) and order credit limit at the following levels:
1. Item category level
2. Site level (Bill To)
3. Customer level
4. Party level (This level is applicable only if Credit Management is installed)
5. Operating Unit Default level.
1. Item Category Level
If Credit Check not enabled => Go for Site Level
If Credit Check is enabled and both credit limit and order credit limit are NULL/BLANK
=> Go for Site Level
2. Site Level(Bill To)
If Credit Check not enabled => Go for Customer level
If Credit Check is enabled and both credit limit and order credit limit are NULL/BLANK
=> No Credit Check
3. Customer Level
If Credit Check not enabled => Go for Party level is
Credit Management is installed else go for Operating unit default level
If Credit Check is enabled and both credit limit and order credit limit are NULL/BLANK => No
Credit Check
4. Party level (This level is applicable only if credit Management is installed)
If Credit Check not enabled => Go for Parent Party,if any available, else go to Operating Unit
Default limits.
If Credit Check is enabled and both credit limit and order credit limit are NULL/BLANK => No
Credit Check

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5. Operating Unit Default Level
If both credit limit and order credit limit are NULL/BLANK => No Credit Check
Scenario:
In this test flow, we will setup a credit limit of $5000 for the bill-to-site for an
existing customer A. C. Networks.
We will verify in this test case that the order goes on credit check hold when the
order amount surpasses the credit limit
In order to trigger automatic Credit checking on sales orders it is necessary that the
credit checking is enabled for the order type, customer profile and payment terms
associated with the transaction.
Credit check set up involves the following setup steps:
Step 1: Credit Check Rules Setup
Step 2: Customer Profiles Setup
Step 3: Payment Terms Setup
Step 4: Order Types Setup
If any one of order type, customer profile and payment terms does not have credit
checking enabled, the sales order will not be credit checked
Step1: Credit Check Rules Setup
[N]: Setup > Rules > Credit

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Step 2 : Customer Profiles Setup
[N]: Customer > Standard

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Step 3: Payment Terms Setup
[N]: Setup > Orders > Payment Terms

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Step 4: Order Types Setup
[N]: Setup > Transaction Types > Define
Test flow Steps

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To release the credit check hold, go to Actions->Release Holds, enter a Reason, and click on
Release
OM Indivisible:
If this flag enabled we can split the order for that particular item. Single Line/Single order can
split into multiple lines.
(Item Master Form -> Physical Attributes -> OM Indivisible)
25. Qualifiers and Modifiers
Modifier Types
1. Discounts
2. Promotions
3. Surcharge
4. Deals
5. Freight and special charge list

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26. Sales Order Types.
a) Standard Sales Order/ OTC Cycle/O2C Cycle (Order to Cash Cycle)
Define Item
1 • Enter order
2 • Book the order
3 • Pick the order
4 • Shipthe order
5 • Run workflow backgroundprocess.
6 • Invoice.
7 • Receipts
8 • GeneralLedger

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Create On hand using Miscellaneous Receipts

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1. Enter the order:
[N]: OM->Orders, Returns->Sales Order
Header -> Entered
Line -> Entered
2. Book the order:
Header -> Booked
Line -> Awaiting Shipping
3. Pick the order:
Navigation: OM->Shipping->Transactions
Header -> Booked
Line -> Picked.
Pick wave move order generated and transferred (if Auto Allocate flag enabled)
Source SI -> Staging SI
Delivery number generated (if Auto create deliveries flag enabled)
4. Ship the order.
Navigation: OM->Shipping->Transactions
Header -> Booked
Line -> Shipped.

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Interface trip stop(ITS):
It updates (decrement) the on hand in staging sub inventory and move the sales order to
shipped status
5. Run workflow background process.
 It will move the data from OM base tables to AR Interface tables (RA_Interface_lines_all) in
case of “Line – Flow Generic Workflow”
Order Header Status-> Booked.
Order Line Status -> Closed.
6. Auto invoice master program.
This will take sales order number as input and generates invoice automatically.
7. Receipts
8. Bank Reconciliation
9. Posted to GL
a) Standard Sales Order /Order to cash cycle (With defined configuration/setups)
Enter the order

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Line information
Verify On hand Availability

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Verify Inventory Periods (Warehouse Org)

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**Back order sales order:
If there is no on-hand or if inventory periods are not opened then sales order goes to back
order status which can view from the shipping transactions form.
Book the order
Click on Book the order

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Pick the order
Actions -> Launch pick release -> Go

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Verify Pick slip report out
It displays
Move order number
Delivery Number

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Ship the order

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Run Workflow background process
It Interfaces data from OM Base tables to AR Interface table
It changes Sales order status from Shipping -> closed

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To view Interfaced record
[N]: AR -> Control -> Auto invoice -> Interface Lines

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Data Base
Run Auto invoice master program
[N]: AR -> View -> Request -> Submit New Request

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b) RMA Sales Order(Return Material Authorization)
Accepting the returns from the customers on already shipped sales order that may be due to any
reason
Damaged product, Not matching with the quality standards.
 Create Return Line Type and assign to header transaction type
Steps
1. Create standard sales order and ship it.
2. Returnable flag should be enabled for the item in item master form.
3. Create RMA Sales order by using RMA Transaction type and Book the order. (Line status ->
Awaiting Returns)
4. Perform receipts (Line status -> Returned)
Define Return Line Type
[N]: OM -> Setup -> Transaction types -> Define
Assign Return Line Tx type to Header Transaction type
Query Header Transaction type
Click on Assign Line Flows

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Step 1:
We have already created Standard Sales Order and Shipped
Step2:
Query Item in Master Org
Order Management -> Enable ‘Returnable’ Flag

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Step 3:
[N]: Orders, Returns -> Order Organizer ->
Enter Shipped Sales Order Number & Find
Action & Select -> Copy
New Order Number gets created & click on continue

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Need to perform receipts for the customer returns (Pending)
Need to capture Receiving screen shots
c) Drop Ship Sales Order(Vision).
 Satisfying the customer demand through third party vendors. (or)
 Drop shipment on the other hand is a method of order fulfillment where the
organization taking the order does NOT maintain their own inventory for the drop-
shipped product, but fulfill their orders through 3rd party vendors who directly ship to
the end customer ordering the product.
Organization
Sales Order Purchase Order
Customer Supplier
Supplier directly ships material to customer

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Steps:
1. Define an item (Apply Purchased Template)(List price)
2. Create sales order and book the order. (Shipping->External)
Header -> Booked.
Line -> Booked.
3. Run work flow back ground process (To move the data from OM Base tables to the PO
Interface Tables, po_requisitions_interface_all).
Header status ->Booked.
Line status -> Awaiting Receipt
4. Run ‘Requisition import’. (From Purchasing Responsibility).
Header -> Booked
Line -> Awaiting Receipts
5. Based on the requisition auto create purchase order and approve it. (Verify Customer
address in the ‘Drop Ship’ region of the purchase order).
6. Do the logical receipts against purchase order. (Verify order statuses)
Header -> Booked
Line -> Shipped
Step1:

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Shipping Source -> External
1. Item Level
2. Transaction type level
3. Sales order line level

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Step2:

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Step3:

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Step4:
From Purchasing Responsibility Run Requisition Import Program

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Verify Requisition Import output
Verify Requisition Number
Purchasing -> Requisitions -> Requisitions Summary

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Step 5:
[N]: Purchasing -> Auto create
Click on Clear, Enter Requisition Number

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Select the Line & Click on Automatic

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Change Ship To, Bill To from V1 Location to M1 Location

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Step 6:
[N]: Purchasing -> Receiving -> Receipts (Make Sure, Inventory, PO, GL Periods should open)
Perform Logical Receipts
Create Logical SI (Subinventory Name Should be Logical)

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Minimize the Receipt Header

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d) Back to Back Sales Order.
Pre requisites:
1. ATO Check Box should be enabled (It uses ATO workflow)
2. List price should be entered.
3. User should be a buyer.
Note: Remove value at site level for profile option “MRP: Default Sourcing Assignment Set”
Steps:
1. Define item.
Purchased Item Template
List Price
ATO Check Box flag should be enabled (ATO-Assemble to order) in Order Management
region
It should be buy item (General Planning->Buy)
2. Create a sales order and book the sales order. (Order Line Status->Supply Eligible)
3. R.Click -> Progress order-> Create supply order eligible. (Order Status-> External req
requested) (PO_REQUISITIONS_INTERFACE_ALL)
4. Run ‘Requisition import program’ from purchasing resp by selecting import source as ->
CTO. (Order Status->External Request open)
5. Find generated requisition from the requisition summary window.
6. Based on the generated requisition auto create purchase order and get the approvals for the
po. (Order Status-> PO Open)
7. Receive the material against po.(Order Status->Awaiting Shipping)
8. Pick & ship the material to the customer. (Order Status->Shipped)

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Step 1:

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Step 2:

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Step 3:

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Step 4
Purchasing -> Run Requisition Import

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Step 5:
[N]: Purchasing -> Requisitions -> Requisition Summary

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Step 6
[N]: Purchasing -> Auto create
Select the Line & Click on Automatic

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Step 7: Receive the material against po.(Order Status->Awaiting Shipping)
Step 8:Pick & ship the material to the customer. (Order Status->Shipped)

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Differences Between Drop Ship and Back to Back
Drop Ship VS Back to back
1. Shipping Source -> External 1. Shipping Source -> Internal
2. Vendor is responsible for shipping 2. company is responsible for shipping
3. Inventory is not affected 3. Inventory is affected
4. Logical Receipts 4. Physical Receipts
5. Interaction b/w customer & supplier 5. No interaction b/w customer & supplier
Mandatory setups for Drop ship
 Shipping source -> External
 List price required
 Purchasable, customer orders flags need to be enabled
 Logical Sub Inventory Required to perform logical receipts
Mandatory setups for back to back
 Shipping source -> Internal
 ATO Flag should be enabled (To access the ATO Workflow)
 Purchasable, customer orders, shippable flags need to be enabled
 Customer ordered, customer orders flag need to enabled
 Purchased, Purchasable flag need to enabled
 User should be a buyer
e) IRISO Sales Order.( Internal Requisition and Internal Sales Order)
Prerequisites:
1. Customer should be defined as internal (Attach Destination organization location(Ship to)
2. Shipping networks setup required and Enable Internal orders flag
3. Internal orders flag should be enabled at item level
4. Periods should be opened.
5. In the purchasing options attach Internal Order Transaction type
Steps:
1. Item should be available in both the organizations. (Make sure to provide list price and
Enable Internal Order Enabled Flag) (Provide List Price at IMO level before assignment)
2. Do the Shipping Networks. (If exists please verify)(Make sure Internal orders flag is
enabled)
3. Define Internal customer and attach Internal Org location
4. Create internal requisition from destination organization.
5. Run ‘Create Internal Orders’ from purchasing responsibility (OE_HEADER_IFACE_ALL)
6. Run Order Import Program from order management responsibility from source
organization.
(Sales Order will be created with the booked status)

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7. Verify sales order from ‘order organizer’ form.
8. Pick the material
9. Ship the material.
10. Perform Receipts at destination organization.
Step 1:

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Step 2:
[N]: Inventory -> Setup -> Organizations -> Shipping Networks
Step 3:
[N]: OM -> Customers -> Standard

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Save & Add Details
Select Site -> Details

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Business Purpose -> Ship to -> Details
Verify the Inv Periods

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Purchasing Options -> Attach OM Transaction Type
[N]: Purchasing -> Setup -> Organizations -> Purchasing options
Step 4:
[N]: Purchasing -> Requisitions -> Requisitions

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Step 5:
Purchasing -> Run Create Internal Orders

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Step 6:
Order Management -> Run Order Import

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Verify Child Request output

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Step 7:
[N]: Order Management -> Orders, Returns -> Order Organizer

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Next Steps
Booking
Picking & Shipping
Perform receipts at destination organization
**Mandatory Steps for IRISO Flow:
 In item master form internal orders flag should be enabled and assigned to both the orgs
 Shipping networks (specify source and destination organization and internal orders flag
should be enabled)
 Customer should be internal
 Customer ship to location should be destination org location
27. ATP/CTP
Scheduled ship date generation
1. Automatically (Auto schedule -> ON) (Profile option: OM: Auto Schedule > Yes/No)
2. Manual (Auto schedule -> Off)
3. ATP

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ATP(Available to Promice)
Oracle ATP allows you the capability to promise the delivery to your customer by providing
accurate information of projected demands and supplies
ATP = On-hand +Supply – Demand
On hand = Nettable quantity on hand
Supply = planned orders, scheduled receipts (purchase orders, purchase requisitions, and discrete
jobs),
Demand = sales orders, component demand (from planned orders, discrete jobs, and suggested
repetitive schedules);
ATP rule can set up at Org Level and Item Level
[N]: Inventory -> Setup -> Rules -> Available to promise
Can be controlled at Org Level

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Can be controlled at Item Level
CTP (Capable To Promise)
Capable to Promise (CTP) extends Available to Promise by taking into account capacity
information. Whereas ATP only considers material availability and assumes infinite capacity
resources, CTP considers availability of both materials and capacity, giving a more realistic picture
of whether demand can be satisfied within a given time fence.

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Oracle ATP allows you the capability to promise the delivery to your customer by providing
accurate information of projected demands and supplies. Basically, there are two types of ATP
where the ATP information is retrieved from
ATP Based on Collected Data
This is the basic type of ATP where availability calculation is based on the collected data
from transactional systems. It can be Deployed without Oracle Advanced Supply Chain Planning
(ASCP). The main capabilities of this type of ATP are:
Basic ATP
Single-Level Supply Chain ATP
Product Family ATP
Configuration ATP
Demand Class ATP
ATP Based on Planning Output
This type of ATP calculates the availability from the output of an ASCP plan and promises
delivery dates based on that. This type of ATP offers more advanced options of ATP to the users.
The main capabilities of this type of ATP are:
Basic ATP
Multi-Level Supply Chain ATP
Product Family ATP
Configuration ATP
Allocated ATP
Demand Class ATP
End Item Substitution
2. How can we know which type of ATP we are using.
The type of ATP we are using is defined by profile option
'INV : Capable to Promise'.
This is a site level profile option.
Valid values are:
ATP/CTP Based on Planning Output
ATP Based on Collected Data

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28. Inventory Picking Rule
A user–defined set of criteria and priorities, Order Management uses when picking items out
of finished goods inventory to ship to a customer. Picking rules are defined in Oracle
Inventory.
Steps:
1. Define picking rule
2. Picking rule can be associated to Org level and item level (first priority)
3. Test the functionality
Step 1:

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Step 2:
Attach Pick Rule at Org level/Item level.
Step3:
create test data based on picking rule setup and test the functionality by performing sales
order picking
29. Pegging (Soft/Hard)
Pegging links demand to incoming supply. You can create a peg chain between a supply
transaction and a demand transaction from either side. Demand transactions can peg to supply
transactions and, conversely, supply transactions can peg to demand transactions. A peg prevents
the incoming supply from being reserved, or allocated to another demand transaction.
The choice of hard pegging and soft pegging depends completely on your business
environment.
Hard Pegging:
Hard pegging is used in always must be strictly allocated used project manufacturing
environments since materials are procured and /consumed to specific projects.
Soft Pegging:
Soft pegging is generally the standard for commercial practices where inventory is considered
"common" and can be re-allocated to any customer based on schedule date and current business
priorities.
Since the pegging feature is controlled at item level, this can be deployed for selected items
30. **Accounting Impact in O2C Cycle
Debit - What comes in
Credit - What goes out
1. Sales Order Entry & Booking
NO accounting Entry
2. Sales Order Pick
Stage Sub Inventory A/c DR
Source Sub Inventory A/c CR
3. Shipping
COGS DR
Stage Sub Inventory A/c CR

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4. After Shipping till Recording the revenue
Deffered COGS DR
COGS CR
5. Transaction entry In accounts receivable (Invoice generation)
Receivables Dr
Revenue Cr
Tax CR
Freight CR
6. Receipt with Cash management
Cash Clearing DR
Receivables CR
7. Clearing the receipt
Cash Dr
Cash Clearing CR
O2C Cycle Tables:
1. OE_Order_Headers_All
2. OE_Order_Lines_All
3. mtl_demand
4. mtl_reservations
5. mtl_material_transactions
6. wsh_delivery_details
7. wsh_new_deliveries
8. wsh_delivery_assignments
Interface Tables:
1. oe_headers_iface_all
2. oe_lines_iface_all
31. Ship set/Arrival set/Fulfillment set
Ship Sets:
You can group order lines to ship together in ship sets. Ship sets can be assigned on an
individual order line or group of lines on an order.
You can assign a single ship set to all the lines in an order
Or you can assign a ship set to only one line in an order
Arrival Sets:
Arrival sets ensure all order lines to arrive at a customer site on the same date regardless of
shipping method and ship to location.

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Fulfillment Sets:
Fulfillment is to ensure order lines are invoiced together, and not separately
Sales order lines waits at ‘Awaiting fulfillment’ status until other sales order lines are shipped.
32. Sales Order/RMA Workflows
Sales Order Workflow:-
Header Workflow
1. Order Flow Generic workflow
Entered -> Booked -> Closed (Automatically)
Line Workflows
1. Line Flow Generic:
Entered-> Awaiting Shipping -> Picked -> Shipped -> Closed
2. Line Flow Generic - Bill Only
Entered -> Booked -> Closed
3. Line Flow Generic - Ship only
Entered -> Awaiting Shipping -> Picked -> Shipped -> Closed
4. Line Flow - Standard Service
5. Line Flow – ATO Item (Back to back)
https://docs.oracle.com/cd/E18727_01/doc.121/e16350/T393423T393426.htm
RMA Workflow:-
Return for Credit
Accept returns for credit by applying credits to original invoices or creating on account
credits. Through Order Management's integration with Oracle Receivables, application
of your revenue rules and credit methods determines when the credit is recognized and issued.
Return for Replacement
Damaged deliveries or defective items upset your customer, sales organization, and
materials management. Your returns for replacement are processed as you issue an
RMA for the original order and manually process a new order line for the replacement
item.
Note: There is no seeded Order Management workflow to support Return for Replacement.
Un-Invoiced Return
You can receive returned items from consignment without any accounts receivable
activity, as with a returned demo or sample item. You return these items to inventory without
crediting the customer account or shipping a replacement item.
Order Management has not seeded a workflow for this type of order processing.

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However, to accomplish return order processing in this fashion, users can create a new
workflow that will support an order line type which does not have the Invoice Interface
sub process with its flow definition.
**RMA Workflows/ Return Material Authorization Types (Line Types)
1. RMA with Credit Only
Your company issues a credit without the customer returning the product.
2. RMA with Repair
Your customer returns a damaged product. Your company repairs and returns the product to
the Customer.
3. RMA with Replacement
Your customer returns a product and your company sends a replacement product rather
than issuing a credit.
4. RMA with Receipt and No Credit
Your customer returns a product you sent to them on a trial basis or at no charge,therefore
they receive no credit.
5. RMA With Receipt and Credit
Customer returns a product and receives credit.
6. Returned Item Fails Inspection (Exception case)
Your customer returns product, Company inspects product and rejects it.
In this case, you have the option of performing an RMA transaction of type: RMA with
Repair, RMA with Replacement, RMA with Receipt and No Credit, or RMA with Receipt and
Credit.
Over – Receive RMA:
Over receipts is possible based on the over receipt tolerance setup. When an item is over
received in oracle then RMA line status set to received which enables Order Management
either to close the RMA line or to generate a credit, depending upon the workflow.
Under – Receive RMA:
When customers return less than the quantity authorized on the RMA and have no intention
of returning the full quantity, the system can cancel the remaining amount on the RMA line if
you have set up Under-Receipt tolerances.

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33. **Defaulting Rules
Predefined setup provided by Oracle, It is possible to default values in the sales order
header/line based on a condition and with minimum number of keystrokes sales order can
be created.
Like ship method, payment terms, freight terms, price list, order type etc
[N]: OM-> Setup -> Rules -> Defaulting
Steps:
1. Create defaulting condition template for Order Header Entity (to default order header
values)
2. Select respective header attribute and apply default condition by providing value. (make
sure precedence should be less than the others)
3. Run ‘Generate Default Handler Package’ from Tools
4. Verify defaulted values in sales order
Step 1
[N]: OM-> Setup -> Rules -> Defaulting
Click on Defaulting Condition Template

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Step2:
Select the attribute to be defaulted
Click on defaulting rules

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Step 3:

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Step 4:

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34. Processing Constraints
Processing constraints are used to restrict the user action like
 Create
 Delete
 Update
 Cancel
Steps
1. Create a constraint
2. Validating the constraint

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Step 1:
[N]: OM -> Setup -> Rules -> Security -> Processing constraints
Step 2:
[N]: OM -> Orders, Returns -> Sales orders
Create a sales order and book

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Try to change payment type
35. Miscellaneous concepts
Topic1:
When a RMA is partially received, the system will split the return line entered
 One line will be generated completely fulfilled and an additional line will be
generated as unfulfilled and awaiting receiving, unless your Under-Receipt
tolerances enable the line to be fulfilled.
 The fulfilled line will enable Order Management to either close the RMA line or to
generate a credit depending upon the workflow. If Order Management generates a
credit, the total credit does not exceed the original quantity authorized by the RMA
less the cancelled quantity.
36. Mockup Interview Questions
1. Explain O2C Tables?
2. Explain sales order cycle along with status?
3. At how many levels customer credit can be validated?
4. What are the setups required to enables credit check functionality?
5. Explain back to back sales order along with status?
6. What is the significance of profile class?
7. What are the RMA Workflows?
8. What are the Sales order workflow?
9. Explain ATP&CTP?
10. What is the link setup between OM&AR?
11. What are the mandatory setups required to perform IRISO Cycle?
12. What are the mandatory setups required to perform Back to Back Cycle?
13. What is the significance of precedence in pricelist?
14. What is the link between Inventory and Pricing?
15. Explain accounting impact in O2C Cycle?
16. What is the level of Priority while defaulting value in sales order form either from
transaction type of defaulting rule?
17. Explain importance of Replicate seed data?
18. What is the importance of Auto allocate flag?
19. What is the importance of Auto create delivery flag?
20.User is trying to perform picking unable to select/view "launch release" in shipping
transaction form?
21. What are the mandatory attributes required for order management?
22.What is the importance of interface trip shop program?
23.What data pick slip report output displays?
24.What is the difference between Fulfillment set, Arrival set & Ship set?
25.What is the difference between soft pigging & Hard pigging?
26.What is the difference between List price and selling price?

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27.In which business scenario clients user "line flow generic - Ship only" workflow?
28.Is it possible to define different sales order sequence to different operating unit?
29.Is it possible to maintain different sales order sequence for sales order types?
30.What is the difference between Business purpose Ship to and Sold to?
31. What is the difference between debit memo and credit memo?
32.What is the difference between invoice & debit memo?

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