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

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.

Overview of Order Management

Order to Cash Lifecycle

Bank ReconciliationInvoice

Pick ReleaseBook

Receipt

Enter

Receivables

Ship

Confirm

Order Management

AutoInvoice

Cash Management

Shipping Execution

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.

Overview of Application Integration

AccountingInvoices

Inventory

General Ledger

Cash Management

Shipping

Order

Management

Item

Information

Reserve

Demand

Receivables

Receipts

CRM

SuiteCustomers

Pricing

Accounting

OrdersCustomer

Master

Order Management Process

Enter or Import

Order

Order CreationDefaulting Rules

Pricing

Availability

Booking Order Scheduling

Managing OrdersBulk Updates

Holds

Purging

Packing Goods

Shipping

Accounts

Receivables

Reservations

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

Customer places

purchase order

Order

Management

Inventory

Packing Shipping

Invoice

generation

Accounts

Receivables

Sales Order

Make to Order

Order

Management

Work in Process

Packing and

Shipping

Master Schedule / plan item

manufacture

Inventory

Receivables and Cash

Management

Internal Order

Purchasing

Internal

Requisition

Approval of Internal

Requisition

Order Import

View as sales

order

Book sales

order

Ship

goods

Receive goods

by requesting

org

Configure to Order, ATO, PTO

Order

Management

Create configuration

items

Assembly /

Work in

Progress

Packing and

Shipping

Master Schedule / plan

configuration items

Inventory

Receivables and Cash

Management

Final Assembly

Back to Back Orders

Customer

Customer Purchase

Order

Order Management

Sales

Order

Procurement

Purchase OrderSupplier

Supply of

goods

Production

Pegging or

reservation

against sales

order

Packing, Shipping

and Receivables

Drop Ship to Customer

CustomerSupplier

Seller

Goods ship to

Purchase

Order Sales Order

Invoice Invoice

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 seller’s customer. Drop shipments are done because of the following

reasons:

Customer requires an item that is not normally stockedCustomer requires a large quantity of the item which is not available with youIt is more economical when the supplier ships directly to the customer

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

Convert P&A or query into

Order, Convert Quote to

Order, Enter Order, Order

against BSA

Copy an

order

Import from

other systems / CRMEDI

Order Import

Order

Customer Service

Representative

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.

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

Internal External

Warehouse

Ship Method

Shipment Priority

Line Source Type

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

Place Demand

(Schedule)

Order Clerk Inventory

What does scheduling do?

Sets the Order line’s Ship and Arrival schedule dates.Passes the demand to Inventory. The Sales order demand consumes the

item’s forecast. It can place a Reservation if the Order’s 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).

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

Order Clerk Inventory

Check ATP using the Availability button

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.

Item Substitution at Scheduling

Automatic

SubstitutionSchedulingLine Items

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.

Scheduling - Reserve

Place Reservation

Order Clerk Inventory

Reserving inventory assures that the quantity will be available when the order line is

Released for shipping.

The Item’s Reservation is removed when inventory is decremented for the shipped

quantities or if the order line is canceled.

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

Bank Reconciliation

Invoice

Pick ReleaseBook

Orders

Receiving

payment

Enter and Price

Orders

Receivables

Ship Confirm

Order Management

AutoInvoiceCash Management

Shipping Execution

Pricing

(F&SC)

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.

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

Entered order

line

Price list or

agreement

Unit selling priceModifiers

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.

Overview of the Pricing Engine

Calling Application (OM, CRM)

2 Pricing Request

Search Engine

Calculation Engine

Pricing Engine

Pricing

Entities

Returns price and

adjustments

1

3

5

4

6

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.

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 List Sales Order

Price of item is sent from price

list to sales order / calling

application

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

Shipping

Inventory

Management

Shipping

Picking StagingOrder

Management

Accounts

Receivable

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.

Overview of Shipping Concepts

Stop 1 Stop 2 Stop 3

Delivery 1 & Delivery 2 Delivery 2

Trip 1

Trip 2

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.

Overview of Pick Release

Which Orders to fill?

In what order to allocate

inventory?

Release Rules

Release Sequence Rules

Pick Slip Grouping Rules

3 2 1

3 1 2

How to group on the

Pick Slip?

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.

Pick Confirm and Staging Subinventory

Transfer Staging

Subinventory

Source

Location

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.

Overview of Ship Confirmation

Ship

Confirm

Staging

Subinventory

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.

Overview of Deliveries and Delivery Lines

Delivery Line

Delivery Line

Delivery Line Delivery

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 customer’s

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.

Overview of Packing LPNs/Containers

Containers (LPNs)

Packing Workbench

Manual Packing

Auto-Pack

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.

Overview of Trips

Pick-Up

Stop

Pick-Up/ Drop-Off

Stop

Pick-Up/ Drop-Off

Stop

Trip

Drop-Off

Stop

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.

Overview of Shipping Transactions Form

Shipping Entities

• Trips

• Stops

• Deliveries

• Delivery Lines

• Containers/LPNs

Shipping Transaction

Form

Shipping Functions

Data Manager

Search

Perform

Maintain

Information

Query Manager

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.