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