Configure To Order Course - Student Guide

1
Course Introduction
Configure to Order Implementation
Schedule: Timing Topic

05 minutes Lecture and Demonstration
00 minutes Practice
05 minutes Total
Course Objectives
After completing this course, you should be able to:

• Identify the differences between configured item processing and standard item
processing within flows.
• Explain the configured item creation process and exception management.
• Manage processing and sourcing for ATO models.
• Define work definitions for ATO models, and explain how configured item work
orders are created.
• Set up blanket purchase agreements for ATO models.
• Explain the additional information provided by Oracle Fusion
Shipping when a configured item is ordered.
This slide lists the learning objectives for this course.
Oracle SCM Cloud: Configure to Order Implementation 1 - 2

Course Outline
• Lesson 1: Course Introduction

• Lesson 2: Overview of Configured Item Creation and Order Fulfillment
• Lesson 3: Configured Item Creation
• Lesson 4: Global Order Promising
• Lesson 5: ATO Model Work Definitions
• Lesson 6: Procurement of Configured Items
• Lesson 7: Configured Items in Downstream Flows
This slide lists the lessons in this course.

Instructional Approach
Each lesson in this course begins with your instructor presenting important concepts
related to the functional setup or functionality of the Oracle Configure to Order.
Each lesson may also require you to do one or more of the following:
• Complete a portion of the setup in the application.
• Discuss key setup decisions and best practices.
• Complete a knowledge assessment quiz.
This slide describes the instructional approach for this course.

Intended Audience
This course is intended for:

• Functional Implementers
• Implementation Consultants
This slide describes the intended audience for this course.

Prerequisite Courses and Knowledge
Prerequisite Courses
• Prerequisite Knowledge
• Basic understanding of configure to order processes
• Intermediate understanding of ERP Cloud applications, technology, and navigation
This slide describes the prerequisites for this course.

Documentation Resources
• Oracle Supply Chain Management Cloud documentation, available in the Oracle Help
Center
• Getting Started with Your Manufacturing and Supply Chain Materials Management
Implementation
• Implementing Order Management
• Using Order Management
• Modeling Configurations for SCM
Active links are in the Student Guide.
• Oracle Supply Chain Management Cloud documentation, available in the Oracle Help Center
• Getting Started with Your Manufacturing and Supply Chain Materials Management Implementation:
https://docs.oracle.com/en/cloud/saas/supply-chain-management/20d/
• Using Order Management: https://docs.oracle.com/en/cloud/saas/supply-chain-
management/20d/fauom/using-order-management.pdf
• Implementing Order Management: https://docs.oracle.com/en/cloud/saas/supply-chain-
management/20d/faiom/implementing-order-management.pdf
• Modeling Configurations for SCM:
• https://docs.oracle.com/en/cloud/saas/supply-chain-management/20d/facmg/index.html
• https://docs.oracle.com/en/cloud/saas/supply-chain-management/20d/facmg/modeling-
configurations-for-scm.pdf

Additional Resources
• Cloud Customer Connect Community

– Order Management Forum
– Global Order Promising Idea Lab
– Supply Chain Management Events
• Supply Chain Planning Release Readiness Material
• White Papers
– Sales and Operations Planning Cloud - Revenue and Cost Calculations
– Interoperability of S&OP Cloud using Load Measures from Other Plans
Cloud Customer Connect (https://cloudcustomerconnect.oracle.com/pages/home ) is Oracle's online

cloud community — specifically designed to promote peer-to-peer collaboration and sharing of best
practices, enable members to keep pace with product strategy, and provide a cloud solution feedback
channel directly to Oracle development. Within this community, members benefit by leveraging the
collective knowledge of Oracle Cloud customers and product experts.
• The Forum (https://cloudcustomerconnect.oracle.com/resources/fb0241b9ef/summary) enables you
to network and collaborate on real-life challenges and solutions with fellow members. Share best
practices as you strive to deliver consistent, personalized customer experiences, and connect every
customer engagement with your brand.
• The Idea Lab (https://cloudcustomerconnect.oracle.com/resources/8e2e77f263/summary) allows
you to contribute to our product roadmap that is derived from a variety of influences, such as market
changes, compliance and regulatory forces, industry trends, and one of our best sources, our
customers.
• The Events (https://cloudcustomerconnect.oracle.com/resources/4cb7a01b8c/summary) tab lists
upcoming and replays of Supply Chain Management Events

Order Management Release Readiness Materials
(https://www.oracle.com/webfolder/technetwork/tutorials/tutorial/cloud/r13/wn/r13-2018-scm-
order-mgmt-wn.htm#Update_18C) allows you to learn about the latest innovations in our Order
Management products.
White Papers
• Configure to Order: A Guide to Key Application setups:
https://support.oracle.com/epmos/main/downloadattachmentprocessor?parent=DOCU
MENT&sourceId=2257314.1&attachid=2257314.1:CTO_SETUP_WP&clickstream=ye
s
• CTO- Onhand and Transfer Considerations:
MENT&sourceId=2257314.1&attachid=2257314.1:CTO_ONHAND_TRANS&clickstre
am=yes
• Back-To-Back Supply Creation and Fulfilment: A Guide to Application Setups:
MENT&sourceId=2257314.1&attachid=2257314.1:B2B_SETUP&clickstream=yes

Customer Connect Training Replays
• Customer Connect Training Replays:

– Implementing Sales & Operations Planning Cloud - Key Setups
• Oracle Supply Chain Management Integration Lesson
Product experts schedule Customer Connect training. These sessions provide more information on
topics already discussed in this training or discuss topics relevant to the implementation and use of the
product. The replays of these sessions are listed in a single forum post to make them easy to find:
https://cloudcustomerconnect.oracle.com/resources/fb0241b9ef/posts
You can also find replays of these sessions from the Events area. In the Find Events box, enter
training and Order Management and click Find. This filters your results to list only Order Management
training events.
You can also select one of the available Event Series. The event series filters the events by training
and product areas.
The Oracle Supply Chain Management Integration Lesson
(https://cloudcustomerconnect.oracle.com/posts/5d7d178db7) discusses core integration capabilities
for Supply Chain Management including external web services, integration with PaaS, business events,
file-based data import, ADFdi and common messaging framework.

2
Overview of Configured Item Creation and

Order Fulfillment

00 minutes Practice
30 minutes Total
Learning Objectives
After completing this lesson, you should be able to:

• Explain the concept of configure to order
• Define configured item
• Describe the configured item fulfillment flow
• Explain the data path for sourcing and fulfilling configured items
• Identify the products that must be implemented to enable configured
item fulfillment
This slide states the learning objectives for this lesson.

Configured Item Fulfillment: Make or Buy Flow
Submit Schedule
Order Management/ Sales Order Sales Order
Global Order Promising
Supply Match Create Buy

Chain Orchestration Configuration Supply Order
Create
Product Model Configured Make
Item
Create
Purchasing Purchase
Order
Manufacturing Create Work Complete

Order Work Order
Receive
Inventory Management Ship to Purchase
Customer
Order
Plan
Supply Chain Planning Component
Availability
This diagram depicts the overall back-to-back fulfillment of a configured item in the make or buy flow.
An order is configured and placed in Oracle Order Management Cloud. Oracle Fusion Supply Chain
Orchestration checks the configuration to see if the corresponding configured item was created. If
not, Supply Chain Orchestration sends a request to Oracle Fusion Product Model to create a new
configured item. Then, Oracle Fusion Global Order Promising generates a supply recommendation
and schedule. Oracle Supply Chain Planning Cloud uses the order data in planning for component
availability. Supply Chain Orchestration then creates the supply request documents for the
configured item and delivers them to the appropriate application, Oracle Manufacturing Cloud (Make)
or Oracle Fusion Purchasing (Buy). In certain cases, the exact configured product may be available
in another warehouse location. Global Order Promising may recommend that supply be transferred
to the appropriate warehouse or be shipped from the location where it is currently available. Supply
Chain Orchestration creates the supply request documents and delivers them to Oracle Fusion
Inventory Management, if a transfer is recommended.

Topics
• Overview of Configure-to-Order
• Configured Item Fulfillment Flow
• Data Path for Sourcing and Fulfilling Configured Items
• Overview of Setup
This section discusses the concept of configure-to-order.

Overview of Configure-to-Order (CTO)
• Configure-to-order allows the selection of product options during the sales ordering
process.
• Configured product
– End result of option selections.
– Assembled or manufactured based on the specifications on the sales order.
• Reasons to use CTO:
– It’s undesirable to prebuild and stock supply that represents all possible
combinations of product options.
– Some option combinations rarely sell.
– Items are high cost and therefore expensive to maintain as onhand inventory.
– Items are very large and therefore impractical to stock in every combination.
By implementing CTO, customers will only manufacture or procure a finished good with a particular
combination of options once a sales order for the combination is received.

Configure-to-Order Business Example
Vision Corporation is a computer hardware manufacturer that captures orders for

configured products from multiple channels. Some products are manufactured in-
house and shipped from their facilities, while others are procured from their supplier
and shipped from Vision Corporation’s facilities. Typical product offerings from Vision
Corporation are highly specialized and high cost.
A key business requirement for Vision Corporation is to efficiently manage costs
associated with manufacturing and maintaining slow moving inventory. After
evaluating many vendors, Vision Corporation has decided to implement the Oracle
Cloud Configure-to-Order flow within the order-to-cash solution.

Configure-to-Order Model Items and Delivery
Processes
Model items
• ATO – Assemble to order
• PTO – Pick to order
• Kit – Predefined
Delivery processes
• Shipment from internal warehouse
• Drop-shipment from supplier
• Back-to-back shipment from internal warehouse
– Made through internal manufacturing
– Procured from supplier
You can choose from multiple model types, and more than one type can include configurations. This
course focuses on the configuration and fulfillment of two model types:
• Assemble-to-order (ATO), where the configuration results in a single item
• Pick-to-order (PTO) models with an ATO component, where the configuration results in more
than one item and includes at least one ATO item
Warehouses rarely stock every set of options of an ATO model. Instead, they source the specific
configuration required by an order after the order is received.
Sourcing choices include:
• Purchasing the configured item from a supplier
• Manufacturing the item to the specifications on the order
What Is Configure-to-Order?
Companies can opt to:
• Have the supplier ship the item to the customer (drop-ship scenario) when the configured
product is sourced from a supplier.
• In this course, you will concentrate on the back-to-back fulfillment scenario where the item is
manufactured internally or purchased from a supplier and then shipped to the customer from
a company warehouse.

Configured Item Selection
AS49000C
Vario 7500C Configuration Table:
Description: The Vario 7500C configurable table features 10.1-inch display with a
1280x800 resolution, a 2.2 GHz quadcore processor and dual cameras
Optional option class
CM65040 CM65040 CM60010 CM60012

CM60011
CM65032 Table: Internal Storage Options Table: Casing Color Options
Battery WLAN Table: HD Camera Options (Option
Processor (Mandatory) (Mandatory Option Class-Must Pick (Mandatory Option Class-Must Pick
(Mandatory) (Mandatory) Class)
One) One)
CM65050
CM65003 CM65060
16 GB Internal
Front HD Camera Black Casing
Mandatory component Memory
CM65051
CM65002 CM65061
32 GB Internal
Rear HD Camera Silver Casing
Memory
Mandatory option class

CM65052
CM65062
64 GB Internal
White Casing
Memory
User selection
This diagram depicts an example in which Rachel Collin, an order entry specialist, receives an order
from Donald Wilson from XYZ Telecommunications for 50 Vario 7500C Configurable Tablets that are
configured with the options highlighted in the graphic. She submits the order, which is sourced either
from a supplier or manufactured to the order specifications and then shipped to the customer from an
internal warehouse.

Participating Cloud Applications
• Oracle Supply Chain Management Cloud

– Product Model
– Configurator
– Pricing
– Supply Chain Planning
– Order Management
– Supply Chain Orchestration
– Global Order Promising
– Manufacturing
– Purchasing
– Inventory Management
– Cost Management
• Oracle Financials Cloud
– Receivables
These are the applications that participate in the end-to-end processing of configure-to-order
products. Setup and runtime details for the applications in bold are covered in this course. Additional
courses are available to provide details for setup of the other applications to process configure-to-
order products.
• Product Model provides the item and its structure.
• Oracle Fusion Configurator provides the user view of the option selection and the underlying
business rules.
• Oracle Fusion Pricing provides business rule-based prices that are automatically applied
based on user selections.
• Supply Chain Planning uses the order data in planning for component availability.
• Order Management provides the order creation and fulfillment management workspace.
• Supply Chain Orchestration provides the supply creation and supply chain management
workspace.
• Global Order Promising provides rules that govern the ability to promise and the
mechanism to plan sourcing of the item.
• Manufacturing provides the item work definition for work order creation to create new
supplies of the item.

Participating Cloud Applications
• Purchasing provides blanket purchase agreements for pricing configured items procured from
external suppliers, and applies the prices to purchase orders for new supplies of items.
• Oracle Fusion Inventory Management provides management of components used in the
manufacture of configured products, as well as the final configured item. It manages the flow
of goods inbound, within the warehouse or stocking location, and outbound.
• Oracle Fusion Cost Management provides the cost to the enterprise for the item based on the
selected options.

Topics
This section discusses the end-to-end configured item fulfillment flow.

End-to-End Runtime Steps – User View
Ordering – Demand
Create and submit order in Order Management
• Enter the customer information
• Configure the item
• Review the selections and the pricing
• Submit the order
• Verify the order fulfillment details
• View the selections and examine the results of configured item matching
• View the state of the order fulfillment process
How do the various supply chain applications participate in the sourcing and fulfillment of configured
items? These are the steps that an order entry specialist or order manager can take in Order
Management Cloud to create and submit an order. Note that prior setup using Product Model,
Configurator, Pricing, and Global Order Promising is necessary to support the activities in these
steps.

Sourcing – Supply
• View supply order in Supply Chain Orchestration.

– Drill down to the supply order from the Order Management Order Fulfillment details
user interface
– View the supply line details
– View the execution documents and the Make or Buy details, noting the work order
number
• (Make branch) View work order in Manufacturing.
– Examine dynamic work order creation for configured items based on ATO model
work definition, option items and transactional item attributes selected, and the
related applicability rules
– Complete work order product, receive into inventory, and then close the work order
• (Buy branch) View purchase order in Purchasing.
– Examine purchase order creation
– Complete purchase order product receipt and put away, and then close the
purchase order
How is the supply of the configured item managed? Supply Chain Orchestration provides a 360-
degree view of the supply picture. If the item must be constructed based on the order specifications,
then Manufacturing is contacted and the supply creation is managed there through a work order. If
the item must be purchased from a supplier, then Purchasing is contacted and a purchase order is
created. Global Order Promising collects the supply and demand data, so that an updated picture of
item availability can be presented.

Fulfillment
• View processing of supply order in Supply Chain Orchestration.

– View the status of the order tracking line
– View the reservation against the customer order and note that the reservation is
now against on-hand inventory
• Ship the order in Shipping
– Create the shipment against the customer order and release the shipment
• View the status of the supply order in Supply Chain Orchestration
• View the status of the fulfillment order in Order Management Cloud
As the supply is created and moved to its stocking or staging location, Supply Chain Orchestration
provides a view of the sourcing progress. After the supply is created, Receiving receives the supply
and stores it in the appropriate warehouse before shipping it to the customer. The Supply Chain
Operations Manager and the Order Manager can view the completion of the sourcing and fulfillment
activities in the corresponding application.

Topics
This section discusses the data path for sourcing and fulfilling configured items.

Configured Item Fulfillment – Processing View
Enter Sales Book and
Order Management/ Order Schedule
Global Order Promising Sales Order
Supply Chain Orchestration Match Buy

Configuration Create Supply
Order
Create
Item
Create
Purchasing Purchase
Order
Create Work Complete

Manufacturing Order Work Order
Receive
Customer
Order
Plan
Planning Component
Availability
This diagram depicts the data path that supports order sourcing and fulfillment. The slide shows both
the Make and Buy flows.
Common Steps (dark gray boxes)
• Submit sales order: Select and configure item, and submit the order for validation.
• Match configuration: Identify and add the configured item specification to the order.
• Create configured item: Create a new configured item if one doesn’t exist.
• Schedule sales order: Start fulfillment processing.
• Create supply order: Identify sourcing requirements.
• Ship to customer: Send the finished goods from the warehouse.

Configured Item Fulfillment – Processing View
Additional steps for the Make path. (The steps appear in gray boxes in the processing view in
the slide.)
• Plan component availability: Based on the selected components.
• Create work order: Based on the work definition for the ATO model.
• Complete work order: Build the configured item, add the finished goods into
inventory, and reserve them to the sales order.
Additional steps for the Buy path. (The steps appear in maroon boxes in the processing view
in the slide.)
• Create purchase order: Send the item specifications to the supplier.
• Receive purchase order: Receive finished goods and add them to the warehouse
stock for the sales order.
Note: Change management processing is also supported.

Topics
This section lists the required and optional setup activities for configured item fulfillment.

SCM Setup for Configured Item Fulfillment
• Product Model – Items and item structures, item classes

• Configurator – Configuration pages and rules
• Pricing – Pricing strategy, price lists, discounts, and rules
• Order Management – Assignment rules, custom processes
• Supply Chain Orchestration – Predefined
• Global Order Promising – ATP rules, sourcing rules and assignments
• Manufacturing – Work definition
• Purchasing – Blanket purchase agreement
• Shipping, Receiving, Inventory Management
• Costing
This course covers setup and runtime details for configured item processing for the applications in
bold. Additional courses are available to provide details for setup of the other applications to process
configure-to-order products.
This slide lists required and optional setup activities (for example, price lists are required, but
discounts aren’t). For the applications in bold, details related to required and optional setups that are
specific to configured items are given in the subsequent lessons of this course.

Discussion Questions
• Name three differences between the setup and processing of a configured product
and a standard product.
• What are the common runtime processing steps in the assemble-to-order flows?
• What applications are required for these steps?
• What additional steps are required for the Make path?
• What additional steps are required for the Buy path?

Summary
In this lesson, you should have learned how to:

• Explain the concept of configure to order
• Define configured item
• Describe the configured item fulfillment flow
• Explain the data path for sourcing and fulfilling configured items
• Identify the products that must be implemented to enable configured item fulfillment
This slide reviews the objectives you learned in this lesson.

3
Configured Item Creation


30 minutes Practice
55 minutes Total
Learning Objectives

• Define configured item parameters in each participating application
• Explain configuration matching during runtime processing
• Explain generation of structure data for configured items
• Identify setup requirements for configured item creation and matching
• Identify and resolve exceptions in configured item creation

Configured Item Fulfillment: Make and Buy Flows
Submit Sales Schedule
Order Management/ Order Sales Order

Create
Product Model Configured Item
Make
Create
Purchasing Purchase
Order

Receive
Customer
Order
Plan
Availability

Topics
• Item Definition and Product Configuration

• ATO Model, Structure, and Item Number Setup
• Configured Item Creation
• Configuration Matching Process
• Dynamic Structure Generation for Configured Item
• Configured Item Exceptions
This section discusses item definition and product configuration.

Configured Item
DCAM*0918
DCAM*0920
DCAM*0921
DCAM*0922
DCAM*0923
• A configured item is the result of the choices that a customer makes at run time in configuring
an assemble-to-order (ATO) product. The unique final assembly based on order choices is
modeled as a unique item.
• Modeling a separate item improves handling and identification through the warehouse and
shop floor and enables all normal item-centric functionality throughout Oracle Supply Chain
Management Cloud. It also improves item and on-hand visibility in inventory, promising, and
planning. The additional setup of the configured items happens automatically.
• The specific configured item is used also, internally, in downstream processes and document
creation. Work orders, purchase orders, and warehouse documents use the configured item
during fulfillment. In Manufacturing, specific processing, such as inclusion of option-
dependent operations for the configured item work order is enabled based on the selected
options and transactional item attributes. Production planning is also enhanced in this
manner.
• Customers, suppliers, and other external trading partners continue to see the configuration in
the way in which they need to see it—base model and options selected.

Topics

This section discusses configured item number generation; setup of models, option classes, and
options; as well as setup of model item structure.

Configured Item Number Generation
Setup scheme to generate

configured item numbers
This screenshot depicts the following key fields on the setup screen (selections used in the slide are
in italics):
• Item Number Generation Method: Inherited from Parent, Rule Generated, Sequence
Generated, User Defined
• Configured Item Number Generation Method: None, Sequence
The first setup requirement is to ensure that an appropriate item class exists and that the item
number generation details are properly populated. You perform the setup to generate the item
number for a specific configuration when you set up the item class using the Item Management tab
of the Manage Item Classes task in Oracle Fusion Functional Setup Manager. You must set up the
item class before you create an item based on that class.
Required Details
• Starting Number
• Increment By

Configured Item Number Generation
Optional Details
• Prefix Type: Model Item Number, None, User Defined
• Suffix Type: Model Item Number, None, User Defined
• Delimiter: Asterisk, Hash, Hyphen, None, Underscore
Based on the setup presented in the slide, configuration items based on the model item
AS49000C would have item numbers such as AS49000C*123, AS49000C*124,
AS49000C*125.
Navigation
1. In the Navigator, click Setup and Maintenance.
2. On the Setup and Maintenance page, click the Search button. In the search field,
enter Manage Item Classes task.
3. Under Name, click Manage Item Classes.
4. Click Create Item Class and enter an item class, internal name, and description.
5. Click Save and Add Details.
6. On the Edit Item Class tab, select the Item Management subtab.

Demonstration: 3-1
• Setting up Item number generation.
This demonstration shows how you can create an item class and populate item number generation
parameters.

Setup of Models, Option Classes, and Options
Structure item type is Model for the

ATO model only
Autocreated Configuration is set to

Yes
Reference to the base model
This screenshot depicts the ATO model setup and highlights some of the differences in what will be
the configured item when it is automatically created based on your selections. If you intend to make
the configured items, then you should set the Build in WIP attribute for the ATO model to Yes.
After you set up an appropriate item class, you must create the ATO model that will be configured
when you create the sales order. You create the ATO model in Oracle Product Model using the
Product Information Management link on the Navigator. Choose the Manage Items task and create
the model item. Refer to the Product Model documentation on creating items with structures to
create the model item.
Navigation
1. In the Navigator, select Product Information Management.
2. On the Overview tab, click the Tasks icon in the upper panel drawer and select Manage Items.
3. Enter the model item in the Item field and click Search.
4. Select the model item in the Search Results.
5. In the Edit Item tab, click the Specifications subtab.

Setup of Model Item Structure
Model > Option Class > Option hierarchy

represented using Item structures
Mandatory component
Optional component
This screenshot depicts the Edit Item Structure page and a model with its components in a
hierarchical format.
After you create the item class and base item objects, you must add the model item structure. This is
where you specify mandatory components and option classes, as well as the minimum and
maximum number of choices allowed for an option class. You can then import the model structure
into Configurator to set up rules for the configurations. Refer to the Product Model and Configurator
documentation for more details on these setup requirements.
Navigation
1. In the Navigator, select Product Information Management.
2. On the Overview page, click the Tasks panel tab.
3. In the Tasks panel drawer, click the Manage Items task.
4. On the Manage Items page, search for the item and drill down on the item name.
5. On the Edit Item page, select the Structures tab.
6. In the Structures tab, drill down on the structure name to see the details.

Topics

This section discusses how a configured item is created.

Creation of Configured Item at Run Time
• Creates in item master for model and options selected on sales order
– Copies item attributes from model item
– Applies values set in configured item template
– Autocreated Configuration = YES
– Structure Item Type = Standard
– Base Model = <model item>
• Stores configuration information in Configure-to-Order match tables
• Specifies item catalogs for configured items
When is the configured item created?

The new configured item is created by Supply Chain Orchestration at run time from sales order
selections, including transactional item attributes, prior to order fulfillment processing. The item is
created in all organizations in which the ATO model exists.
The creation service also asynchronously copies entities from the ATO model to the configured item
to enable downstream processes, and logs errors if there are any failures. The entities are:
• Subinventories and locators
• Item transaction defaults
• Inventory consumption rules
• Units of measure, both intraclass and interclass
If the configured item itself cannot be created, then the order is rejected. After you correct the cause
of the error, Order Management must resubmit the order and resubmit the configuration matching
request.
Creation of Configured Item at Run Time
If the item is created, however, and the rest of the copying in the previous paragraph is not
completed, then the order is not rejected but an exception is logged in Supply Chain Orchestration.

Item Catalog: You can specify the item catalogs that the configure-to-order process assigns to
a configured item at run time when the user configures the item. To use more catalogs, you
can add them to a supply orchestration lookup. An item catalog is used to categorize each
configured item into a meaningful group to help manage the item and to summarize data when
you create a report. You can add an item catalog to a supply orchestration lookup, then rely on
the lookup for inclusion of the catalog in the copy action.

Topics

This section discusses how the configuration matching adds to the efficiency of the configured item
creation process.

Configuration Matching
Viking Stove Order:

Order Match
Viking Stove
847829 Data VIK12*201 Tables
Viking Stove Burner Model Viking Stove Burner Model
Fuel Type Option Class Fuel Type Option Class
Electric Electric
Burner Style Option Burner Style Option

Class Class
4 Small Standard 4 Small Standard
Oven Style Option Class Oven Style Option Class
Electric Oven Electric Oven
Finish Option Class Finish Option Class
Stainless Steel No Match Black
This diagram depicts an order for an ATO model, a stove, and the match tables that are searched to
locate the existing configuration. Note that a match was not found in this figure.
How do you add efficiency to the configured item creation process?
When you submit an order containing a configured item, the application uses configuration matching
to determine whether the configuration already exists. If a match is found, then the configured item
ID is returned to the order. If no match exists, then the configured item creation process is initiated,
which creates a new item in the item master and stores selected options data in the Supply Chain
Orchestration match tables.
This process minimizes the proliferation of configuration data by storing the configurations and
reusing them when an identical configuration is ordered in the future.

Topics

This section discusses dynamic structure generation for configured items.

Dynamic Structure Generation for Configured Items
AS49000C
Vario 7500C Configuration Table:
Description: The Vario 7500C configurable table features 10.1-inch display with a 1280x800
resolution, a 2.2 GHz quadcore processor and dual cameras
CM65040 CM65040 CM60010 CM60012

CM60011
CM65032 Table: Internal Storage Options Table: Casing Color Options
Battery WLAN Table: HD Camera Options (Option
Processor (Mandatory) (Mandatory Option Class-Must Pick (Mandatory Option Class-Must Pick
(Mandatory) (Mandatory) Class)
One) One)
CM65050
CM65003 CM65060
16 GB Internal
Front HD Camera Black Casing
Memory
CM65051 CM65002 CM65061

32 GB Internal
Rear HD Camera Silver Casing
Memory
CM65052
CM65062
64 GB Internal
White Casing
Memory
This diagram depicts dynamic structure generation for configured items.

How do we store configured item structure data?
Configured item bills of material are not stored in the item structures tables but are constructed upon
request using the configured item match data and the base model structure. The Supply Chain
Orchestration service provides structures for use by downstream processes, such as work orders,
purchase orders, transfer orders, and shipping documents.
Two views are available:
• Sales view: Consuming projects use this view to retrieve the model and options that are
selected in the sales order.
• Complete instance view: Consuming products use this view to retrieve the model and
options that are selected in the sales order and also mandatory components and substitute
items.
• Transactional item attribute view: Consuming products use this view to add related
transactional item attributes to either the sales view or complete instance components.
Note: You can search for and view the configured item structure in the Supply Chain orchestration
application. User choices are also visible on the sales order.
Supply Orchestration >> <panel drawer tab> >> View Configured item Structure

Complete Instance View of Configured Item
This diagram depicts a stove model and its components. The model itself and most of its
components are in gray boxes, which means that they are match table data. Only the base stove unit
and the electric oven substitutes are in red boxes, which means they are retrieved from the model
structure data.
All unique configurations use common setup data at the model level (such as sourcing rules and
pricing). The customer choices from configuring the model that are represented on the sales order
are saved to the match tables. When the consuming product requests the complete instance view,
the mandatory components and additional item data are generated from the base model to respond
to the request. Allowed substitutions that are also set up in the model are also supported in this view.
This provides the consuming product the ability to view the entire structure of a configuration without
having to go back to the source document or model.

Topics

This section discusses how you can manage exceptions and errors of configured items.

Configured Item Exception Management
Errors and exceptions

• Error: If the configured item can’t be created, then an error is returned to Order
Management and order processing fails.
• Exception: If the configured item was created, but there was an issue with adding the
additional information for downstream processing, then order processing is allowed
to continue but Supply Chain Orchestration logs the failure as an exception.
When you log into the Supply Chain Orchestration application, one of the three main tabs provides
exception details. After you identify the root cause of the issue and fix it, you can resubmit the
configured item to finish the data processing. Alternatively, you can ignore the exception, if you
completed the tasks manually.
The following fields display details of each exception:
• Base Model and Base Model Description: Model item that is used for configuration on the
order
• (Configured) Item and Description: Configured item that results in the generation error
• Organization: Organization that is associated with the configured item that contains the
generation error
• Exception Date: Date that the error occurred
• Resubmit Count: Number of times the configured item is resubmitted to complete the
creation process

Configured Item Exception Management
• Exception Type: Predefined exception categories
- Consumption Rules
- Item Attachments
- Item Categories
- Item Locators
- Item Inventories
- Item Subinventories
- Item Transaction Defaults
- Related Items
- Units of Measure Interclass
- Units of Measure Intraclass
• Exception Message: Popup to display error message
Navigation
1. In the Navigator, select Supply Orchestration from the navigator.
2. On the Overview page, select the Manage Configured Item Exceptions tab.

Practice: 3-1
• Comparing base model item to configured item
In this practice, you search for model item and configure item definitions, as well as examine their
similarities and differences.

Summary

• Define configured item parameters in each participating application
• Explain configuration matching during runtime processing
• Explain generation of structure data for configured items
• Identify setup requirements for configured item creation and matching
• Identify and resolve exceptions in configured item creation

4


30 minutes Practice
75 minutes Total
Learning Objectives

• Follow the make or buy flow for sourcing and fulfilling configured products
• Describe how forecasts are generated and supply planned to meet forecasted
demand


Supply Match Create Supply Buy

Chain Orchestration Configuration Order
Create
Make
Create
Purchasing Purchase
Order

Receive
Customer Order
Plan
Availability
availability. Supply Chain Orchestration then creates the supply request documents for the configured
item and delivers them to the appropriate application, Oracle Manufacturing Cloud (Make) or Oracle
Fusion Purchasing (Buy). In certain cases, the exact configured product may be available in another
warehouse location. Global Order Promising may recommend that supply be transferred to the
appropriate warehouse or be shipped from the location where it is currently available. Supply Chain
Orchestration creates the supply request documents and delivers them to Oracle Fusion Inventory
Management, if a transfer is recommended.

Topics
• Capability Summary
• Additional Setups for Configure-to-Order (CTO) Promising
• Key Functionality
• Viewing CTO Promising Results
• Refreshing Global Order Promising Data
• Forecasting Demand for ATO Models
• Planning Supply to Meet Forecasts and Orders
This section discusses the CTO promising capabilities in Global Order Promising.

Summary of CTO Promising Capabilities in Global
Order Promising
• Promise assemble-to-order (ATO), pick-to-order (PTO), and hybrids (ATO within
PTO)
• Consider model, option class, and option lead times when determining lead time for
the configured item
• Consider resource capacity and availability for manufactured configured items when
promising
• Consider existing availability of matching configured items before promising an order
• Consider option-specific and option class-specific sourcing exclusions
• Generate supply recommendations for configured items marked back-to-back
• Support drop ship promising of configured items

Topics
This section discusses the additional setups required for Configure-to-Order promising.

Additional Setups for CTO Promising
Define ATO Models, Option Classes, and

Options
Define ATO Model Item Structure

Data Define Sourcing Rules for ATO Models and
Collection Options
Define ATO Model Work Definition Define ATP Rules for ATO Models, Option
Classes, and Options
Generate Resource Capacity
This diagram depicts that Promising for CTO requires extensive setups within other Oracle Cloud
modules such as Purchasing, Inventory Management, and Product Model. You must perform
additional setup within Supply Chain Planning to create sourcing rules, assignment sets, and
available-to-promise (ATP) rules.
• You must perform several setups outside of Supply Chain Planning (Global Order Promising
is a product within Supply Chain Planning).
• You must collect these setups into Supply Chain Planning using the Manage Data
Collections task within Supply Chain Planning.
• You must perform additional setups within Supply Chain Planning to enable order promising.
• This slide shows the Make flow only.
Note: You focus only on incremental setups required to enable the promising of configured items in
this training.

Additional Setups for CTO Promising
For GOP to consider resource capacity and availability when promising manufactured
configured items:
• Operation item assignments in the ATO model work definition must be made at the
first level components of the model
• Operation item assignments made at levels lower than the first level components are
ignored
• Note: Oracle Manufacturing Cloud supports operation item assignments at any level
in the ATO model item structure
This affects customers who want to promise based on actual lead time, and they have option
dependent operations that are chosen based on an option assignment below the option class.
Customers can continue to promise based on item attribute fixed + variable lead times, even at the
option level through ATP rule settings within GOP.

Assign Categories to Model Items
Ensure that models are assigned to an ATP rule using

this category
Ensure that one of the catalogs is assigned to the Global Order

Promising profile “Catalog for Sourcing Assignments”
This screenshot depicts the Edit Item page for a model. The catalog information is listed. You must
ensure that one of the catalogs is assigned to the Global Order Promising profile “Catalog for
Sourcing Assignments.” In addition, it highlights that you must ensure that models are assigned to an
ATP rule using the Furniture Items category.
Configured items are items that are created through the configuration process and are associated
with the base model. When the configured items are created by Product Model, they are
automatically associated with the same categories that the model items belong to. You must ensure
that the model and thus configured items are associated with a category within the same catalog that
Global Order Promising uses through the Catalog for Sourcing Assignments profile. In this catalog,
you must associate the model item with a category and use the same category to assign the ATP
rule to models (and thus to configured items). This setup ensures that when Product Model creates
configured items, Global Order Promising recognizes them after they are collected, without requiring
them to be assigned explicitly to an ATP rule.
Navigation
1. In the Navigator, select Order Promising under Value Chain Planning.
2. On the Overview page, in the Tasks panel drawer, click the Manage ATP Rules task.

Set Up ATP Rules
• Create ATP rules as required and ensure that models, option classes, and options as
well as mandatory components are assigned to an ATP rule
• Ensure that models are assigned to an ATP rule at the category level
• For manufactured ATO models, enable “Search components and resources”
You must set up ATP rules and assign them to models, option classes, and options. You must
assign ATP rules for models at the category level, which enables configured items to be recognized
by the same ATP rule assignment. For manufactured ATO models, if you want Global Order
Promising to consider components and resources when promising an order, then enable the ATP
rule criterion called Search Components and Resources. It is in the Promising Attributes region of
the Edit ATP Rule page.

Sourcing Exclusions (Only If Required)
Specify sourcing exclusions for options and

option classes within a regular sourcing rule
This screenshot depicts the Edit Sourcing Rule page as well as the Manage Exclude for Option and
Option Classes window, that let you specify sourcing to allow transfer of the model from a particular
organization (M2) in all cases, except when the model has the Memory Boards option class selected.
You can use this to specify exclusions either at the option class or option level.
After you create all the required setups outside of Supply Chain Planning, you must create sourcing
rules and assignments for all items that are associated with the models—the model itself, option
classes, and options. Assign the sourcing rule to model items as you normally would, using the
Manage Sourcing Assignment task. The incremental functionality when defining sourcing for CTO is
the ability to define exclusions for options and option classes.
Navigation
1. In the Navigator, select Order Promising under Value Chain Planning.
2. On the Overview page, in the Tasks panel drawer, click the Manage Sourcing Rules task.

Demonstration: 4-1
• Viewing Sourcing and Setting Up Exclusions for Models
This demonstration shows how to view sourcing rule setups for a model and add an exclusion.

Topics
This section discusses the key functionality required for Global Order Promising.

Lead-Time Determination for Promising
Global Order Promising calculates the longest path to determine the lead time
associated with a configured item.
For example: Lead Time:
3 days
• If Option 1 and Option 3 are selected Model
in a Configuration, then Lead time =
Max [(Option 1 + Option Class A +
Option Class Option Class
Model), (Option 3 + Option Class B + A B
Model] = Max [(5+3), (2+3)] = 8 days.

• Similarly, if Option 2 and Option 4 are Option 1 Option 2 Option 3 Option 4
selected, then lead item associated Lead Time:

5 days
Lead Time:
4 days
Lead Time:
2 days
Lead Time:
6 days
with Configuration = 9 days.
This diagram depicts a hierarchical breakdown of a model and the lead time in days for the model
and options. In the above example, if you select Option 1 and Option 3 in a configuration, then lead
time is Max [(Option 1 + Option Class A +Model), (Option 3 + Option Class B + Model)] = Max [(5+3),
(2+3)] = 8 days. Similarly, if you select Option 2 and Option 4, then the lead item that is associated
with the configuration equals to 9 days.
Depending on which option classes and options you select for a model, Global Order Promising
dynamically determines the lead time that is associated with the model. To determine lead time,
Global Order Promising traverses various paths within the item structure and determines the longest
path to determine the lead time associated with the model. Global Order Promising considers the
fixed and variable lead times that were modeled for items across the model structure.
The lead time that is associated with the model influences order promising behavior. For example, if
you request an order for a model today, and there are no existing supplies, then Global Order
Promising ensures that the order is promised only on or after the model lead time.
The model, which has a lead time of 3 days, has option class A and option class B. Each of these
option classes has two options:
Option Class A
Option 1. Lead time=5 days
Option Class B

Option-Specific Sourcing
Global Order Promising applies exclusion rules when making sourcing decisions for
configured items.
Example: Model sourcing rule exclusions are:
Model Model
• Option 1 is selected. D1 cannot be a source.
OC-A OC-B OC-A OC-B
• Option 2 is selected. D2 cannot be a source.
Option 1 Option 3 Option 1 Option 3
Global Order Promising fulfills a configure-to-
Option 2 Option 4 Option 2 Option 4
order item with:
Option 1 selected only from D2
Org D1 Org D2
•
• Option 2 selected only from D1
This diagram depicts model sourcing rule exclusions:

• Org D1 with a hierarchical representation of a model, option class A with options 1 and 2 and
option class B with options 3 and 4. All elements of the hierarchy are red, except option 1,
which is selected.
• Org D2 with a hierarchical representation of a model, option class A with options 1 and 2 and
option class B with options 3 and 4. All elements of the hierarchy are red, except option 2.
Global Order Promising respects sourcing exclusions when promising an order. As in the above
example, Global Order Promising considers sourcing exclusion rules to determine whether to ship
from organization D1 or D2 when option 1 or option 2 is selected for a model.

Topics
This section discusses how you can view CTO promising results on the Global Order Promising
Check Availability page.

Checking Availability of ATO Models
Check availability for a model within Order

Management on the Global Order Promising Check
Availability page
View promising results. All model

items are shown within Global Order
Promising, including mandatory
components
This screenshot depicts the Check Availability page. Orders for ATO models are created within
Order Management Cloud. When you check availability in Order Management Cloud, you see details
of the order promise as seen in the screenshot of the Check Availability page. The multi-level lines
for the model appear. Global Order Promising also shows you the lines for the mandatory
components that are associated with the model, which are not visible in Order Management.

Demonstration: 4-2
• Viewing ATP Rule for Model
This demonstration shows how to view ATP rule setups for a model.

Practice: 4-1
• Viewing sourcing and ATP rules for models
In this practice, you view ATP and sourcing rule setups for a model.

Order Promising: Simulations, Existing Availability
You can edit order input attributes at the model line level
and perform what-if simulation
Global Order Promising considers existing availability of

matched configurations when promising orders
As in any other order, you can change input attributes of the order on the Check Availability page to
simulate order promising. However, you can edit attributes only at the model level. If similar
configurations already exist, then the names of these configurations are passed to Global Order
Promising by Order Management Cloud and are seen in the Configuration Item field. Global Order
Promising tries to consume supply for these configuration items before trying to promise using CTP
functionality.
Navigation
1. In the navigator, select Order Management.
2. On the Overview page, navigate to a fulfillment line and click Check Availability.

Practice: 4-2
• Promising an Order for a Model and Reviewing Promising Results
This demonstration shows how you can view select an order for a model item in Order Management
and then check availability for the order.
Instructor Note: Please demonstrate this practice.

Practice: 4-2
• Promising an Order for a Model and Reviewing Promising Results
In this practice, you promise an order for a model and review promising results.

Topics
This section discusses how you can refresh Global Order Promising data periodically.

Refreshing Global Order Promising Data
• Refresh data periodically.

• Collect item and other data into Global Order Promising at an established frequency.
– New configured items created are not automatically refreshed.
You must refresh data within Global Order Promising periodically because it is an in-memory engine.
New configured items that are created within Oracle ERP Cloud are not automatically refreshed
within Global Order Promising. Therefore, at an established frequency, you must collect item and
other data into Global Order Promising using the Manage Data Collections task in Oracle Supply
Chain Planning Cloud. Data that is collected into Supply Chain Planning is refreshed in Global Order
Promising only when Global Order Promising is restarted using the “Perform order promising server
data refresh” scheduled process.
The Global Order Promising architecture ensures continuity of order promising, even when its data is
being refreshed.

Topics
This section discusses how to create and process organization-specific forecasts for ATO models.

Forecasting ATO Models
Create and process organization-specific forecasts for ATO models in Oracle Planning
Central Cloud.
• Generate statistical forecasts for ATO models: Use shipment and booking history to
forecast.
• Consume model forecasts: Sales orders for configured products consume model
forecasts.
• Explode remaining model forecast: Generate production forecasts for option classes
and options.
• Create supply for organization-specific forecasts: Source components and
subassemblies using standard planning sourcing rules.
Note: Planning Central uses planning percentages for option class and options from the
organization-specific item structure definitions.

ATO Model Forecast Consumption and Explosion
Forecast for the parent model is first consumed Forecast = 1000 units (remaining after consumption by configured
item sales orders)
by sales orders and the remaining forecast is
exploded to the components based on planning
Forecast Control = Consume then explode
percentages.
Model
Production Forecast = 1000 units Production Forecast = 800 units
Consume then explode Consume then explode

Usage = 1 unit Usage = 1 unit
Option Class A Planning percentage = 100% Option Class B Planning percentage = 80%
PF = 1200 units PF = 400 units PF = 160 units
Consume then explode Consume then explode Consume then explode None
2 units 1 unit 1 unit 1 unit
60%
Option 1 Option 2 40% Option 3 20% Option 4 80%
Note: Fixed and variable lead times defined at the model level are used to offset the production forecast of the model components.
This diagram depicts the following:

Consider an ATO model that is manufactured in organization M1 and which consists of an Option
Class A with two options: Option 1 and Option 2. It has another Option Class B with two options:
Option 3 and Option 4. Forecast control for the model and all components, except Option 4, is set to
Consume then Explode.
The planning percentages for the option class and the options are maintained on the item structure.
Planning uses these percentages. Supply planning gets the percentages from the organization-
specific item structure.
You can input organization-specific forecasts for single-level and multiple-level ATO models into
supply planning.
In Planning Central, the forecast for the options, option classes, and lower-level models appear as
Production Forecast. This indicates the forecast that remains after Planning consumes the model-
level forecast against any sales orders for the corresponding configured item. The production
forecast is calculated for all model components based on the planning percentages defined in the
item structure.

Option 4 does not have a forecast control setting of Consume then Explode, so forecast does not get
exploded to Option 4.
Note: Fixed and variable lead times for the model and components are considered during the
generation of production forecasts.
In this example, illustrated in the diagram, the model has Option Class A at 100%, Option 1 at 60%
with usage 2 units and Option 2 at 40%. Assuming the fixed lead time for the model is 5 days and
the variable lead time is 0, the following is the exploded picture of a model forecast that is due on
Day 15:
• Model forecast date = Day 15, quantity = 1000 units after consumption
• Option Class production forecast date = Day 10, quantity = 1000 units
• Option 1 production forecast date = Day 10, quantity = 1200 units
• Option 2 production forecast date = Day 10, quantity = 400 units

Topics
This section discusses how you can plan supply to meet forecasts and orders.

Planning to Meet Model Forecasts
This screenshot depicts the Supplies and Demands page with a model, option classes, and options.
Planning Central meets forecast demand for models by creating planned order supplies for models,
option classes, and options. Forecasts for the top-level model are consumed by sales orders for the
corresponding configured item, and the remaining demand is exploded as type Production Forecast
to the model components.
The order types listed here are forecast and planned order.
Navigation
1. In the Navigator, select Planning Central under Value Chain Planning.
2. Click the drawer icon on the right and then click the Manage Plans link.
3. On the search area, enter a plan name and click Search.
4. Highlight the plan, and select Actions and then Open.
5. Click the Open button and click the full pane icon.
6. In the Open Table, Graph or Tile Set window, enter supplies and demands in the search field
and click Enter.
7. Highlight the supplies and demands and click OK.

Planning to Meet Configured Item Sales Orders
This screenshot depicts the demand for components resulting from sales orders for the model have
order type Planned Order Demand, on the Supplies and Demands page. Planning Central meets
sales order demand for configured items by creating supplies for the configured item and selected
options.
Navigation
1. In the Navigator, select Planning Central under Value Chain Planning.
2. Click the drawer icon on the right and then click the Manage Plans link.
3. On the search area, enter a plan name and click search.
4. Highlight the plan, and select Actions and then Open.
5. Click the Open button and click the full pane icon.
6. In the Open Table, Graph or Tile Set window, enter supplies and demands in the search field
and click Enter.
7. Highlight the supplies and demands and click OK.

CTO Planning
• Sourcing rules defined for the configured item are considered before sourcing rules
for the base model when creating supply for the configured item
• Forecast demand for a model includes only end demand for the model
– It does not include dependent demand if it forms a component of another model
• Planning percentages defined at the operation level within the work definition of the
model are respected
• Pick-to-order (PTO) models are planned
– PTO represents customer-ordered configurations picked and shipped separately, to
be assembled by the recipient
– Planning Central plans for the PTO model and the individual components
• Sourcing rules defined for the configured item are given precedence over that of the
corresponding model while creating supplies for configured items.
• Forecast for a model includes only the end demand for the model, and not demand that
arises from it being a child of another model.
• Any planning percentages that may be defined at the operation level within a work definition
are respected by planning.
• PTO models and individual components are planned.

Demonstration: 4-3
• Submitting CTO Order and Release Planning Recommendations
This demonstration shows the first section of the end-to-end make flow. The order is placed,
scheduled into the shipping warehouse, and planning recommendations for manufacturing are
released.

Summary

• Follow the make or buy flow for sourcing and fulfilling configured products
• Describe how forecasts are generated and supply planned to meet forecasted
demand

5
ATO Model Work Definitions


30 minutes Practice
90 minutes Total
Learning Objectives

• Define a work definition for an assemble-to-order (ATO) model
• Create an applicability rule for an option-dependent operation
• Explain how the configured item work order is created based on the ATO model work
definition

Submit Sales Schedule Sales
Order Management/ Order Order
Supply Match Create Supply Buy

Chain Orchestration Configuration Order
Create
Make
Create
Purchasing Purchase
Order
Manufacturing Create Work Complete

Order Work Order
Inventory Management Receive

Ship to Purchase
Customer Order
Plan
Availability
availability. Supply Chain Orchestration then creates the supply request documents for the configured
item and delivers them to the appropriate application, Oracle Manufacturing Cloud (Make) or Oracle
Fusion Purchasing (Buy). In certain cases, the exact configured product may be available in another
warehouse location. Global Order Promising may recommend that supply be transferred to the
appropriate warehouse or be shipped from the location where it is currently available. Supply Chain
Orchestration creates the supply request documents and delivers them to Oracle Fusion Inventory
Management, if a transfer is recommended.

Topics
• ATO Model Work Definitions

• Applicability Rules
• Export Operation Item Assignments
• Manufacturing Lead Time for ATO Model
• Work Definition Report
• Configured Item Work Order
This section discusses ATO model work definitions.

ATO Model Work Definitions
Visualization of work definition

operations, items, and resources Visualization of primary item
structure
This screenshot depicts the Edit Work Definition Details page. You can see visual representations of
operations, items, and resources. You can also see a visual representation of a primary item
structure.
An ATO model work definition defines the manufacturing process to build any of the resulting
configured items. It consists of operations, items, and resources. In the Configured Item Fulfillment
flow, the configured item work order is created dynamically based on the primary ATO model work
definition, that is, the work definition with Production Priority = 1.
Navigation:
1. In the Navigator, select Work Definition.
2. In the Tasks region of the Overview page, select Manage Work Definitions.
3. In the Search region, specify one or more search criteria (for example, item name or work
definition name) and click Search.
4. In the search results, click the hyperlinked work definition name.

ATO Model Work Definitions Multilevel ATO Model
Visibility to multilevel ATO model item structure:

• Expand option class
• Expand standard item phantom
• Cannot expand child ATO model
A square badge indicates a node can be

expanded
This screenshot depicts how on the Edit Work Definition Details page, you have the visibility to an
ATO model multilevel item structure. You can expand option classes to view the options. You can
also expand standard item phantoms to view the components that make up the phantoms. However,
you cannot expand child ATO models.
Initially, when no operation item assignments have been made, the round count badge is shown only
for a leaf node; it is not shown for a parent node. The round count badge indicates the assigned
quantity over the component total quantity. The count on the square badge indicates the number of
components under a parent. The square badge is not displayed for a leaf node.

ATO Model Work Definition Operations
Option Dependent Details region contains operation attributes specific to the ATO
model:
• Option dependent
• Applicability rule
• Planning %
This screenshot depicts the Option Dependent Details region of the Edit Operation page. The fields
are explained below.
In an ATO model work definition, you can define an operation either as mandatory or option
dependent. A mandatory operation always is included in the configured item work order. An option-
dependent operation is included in the configured item work order if the optional components that
are assigned to the operation are selected in the configuration or if the criteria as defined in the
applicability rule are met. The Applicability Rule field displays the definition of the rule, if one is
defined.
You can specify a planning percentage for an option-dependent operation. The planning percentage
represents the percentage of sales orders that is expected to have the optional components
selected. This percentage is applied when Planning plans resource capacity requirements to satisfy
a demand forecast of the parent model. The planning percentage for a mandatory operation is
always 100%.
Navigation
5. On the Edit Work Definition page, right-click an operation, and select Actions and then Edit.

ATO Model Work Definition Operation Items
Define material requirements for operations

• Must use primary item structure
• Assign a component from any level
• Must assign entire quantity
An ATO model work definition must use the primary item structure of the model. This screenshot
depicts that the ATO model multilevel item structure has been expanded. Visual Information
Navigator (VIN) expands the ATO model only one branch at a time. Since YK_OC1 is expanded,
you can no longer view the siblings of YK_OC1. YK_OC1 has YK_OC3 and YK_OC4 as its children.
However, since YK_OC3 is also expanded, you can no longer view YK_OC4.
You have the flexibility to assign any component from any level to an operation. This is governed by
a couple of simple business rules. The first rule is that if you assign the parent, then you cannot
assign its children. The second rule is that if you have already assigned the children, you can still
assign the parent, however the system will delete the children assignments. This means for an
option class, you can choose whether to assign the option class or the options. Similarly for a
standard item phantom, you can choose whether to assign the parent phantom or the components. If
you assign an option class to an option-dependent operation, then the operation is included in the
configured item work order if any of the options under the option class is selected.
You must assign the entire component quantity to an operation. You cannot update or split the
quantity to multiple operations. After you assign a component to an operation, the count badge turns
into a checkmark icon. If you mouse over the checkmark icon, you can view the operation sequence
to which the component is assigned to.

ATO Model Work Definition Operation Items
Attributes referenced from Product Model

• Basis
• Quantity
• Inverse Quantity
• UOM
• Item Yield
• Planning %
• Optional
Operation item attributes specific to

ATO models
The screenshot depicts the Planning percentage field and the Optional check box, which are
operation item attributes that are specific to ATO models.
Except for the Supply Type attribute, all other operation item attributes of an ATO model work
definition are referenced from Product Model. That is why you cannot update these attributes in the
UI. If the value of these attributes is changed in the Product Model, the change is automatically
synched to the impacted work definitions by the Process Item Structure Changes to Work Definitions
scheduled process. You also can’t assign ad hoc items, which are existing items that are not
components of the ATO model item structure.
Navigation
5. On the Edit Work Definition page, right-click an operation item and select Actions and then
Edit.

Topics

This section discusses applicability rules.

Applicability Rules
An applicability rule can be any or all of the following:

• Option classes
• Optional component
• Transactional item attribute
Option-dependent operation
Option class
Optional components
The screenshot depicts a rule that Operation 21 Test Rear HD Camera is applicable only if the
option Rear HD Camera is selected.
You can assign an applicability rule to an option-dependent operation. It means that the operation
must be included in the configured item work order only if the rule criteria are met. To create an
applicability rule, you can either:
• Drag and drop the item or transactional item attribute card to the Rule Text region, or
• Perform the Insert into Rule Text right-click action.
After you drag and drop or insert the rule text, the application displays the component hierarchy of
the item or transactional item attribute in the rule text. In this example, the component hierarchy is
AS49000C. CM65011.CM65002, which indicates the model.option class.optional component.
Assign only optional components or an applicability rule to an option-dependent operation. If you
assign both, then the applicability rule is not evaluated.
Navigation
3. In the Search region, select a work definition and click Search.
5. On the Edit Work Definition page, right-click an operation and select Actions and then Edit.
6. In the Option Dependent Details region of the Edit Operation window, click the hyperlinked
applicability rule. If the applicability rule doesn’t exist, click the Add icon. Select the Option-
dependent check box so that you can add an applicability rule.

Using Transactional Item Attribute
• Numeric or string transactional item attribute

• Independent or subset value set
String transactional item attribute Transactional item attribute values

from a value set
This screenshot shows that a transactional item attribute called Edition exists for the Vario 7500C
model. You can select from the following options:
• Premium
• Standard
You can view the multilevel item structure of an ATO model in the Applicability Rule user interface,
however only the optional components are displayed. Current and future-effective components and
transactional item attributes appear based on the work definition as-of date. From the first-level
components, you can expand the option classes to view the lower-level optional components. If you
have defined transactional item attributes, then they appear as child nodes of the component, and
expanding the transactional item attribute node shows the attribute values.
The transactional item attributes that applicability rules used are defined in Product Hub for an item
class with application scope “Configuration Matching.” Because transactional item attributes are
associated with an item class, all items that belong to the item class inherit the transactional item
attributes. Based on the item class setup, you can define transactional item attributes for the top-
level ATO model, option classes, optional components, or child ATO models.
You can define an applicability rule using transactional item attributes with either numeric or string
data type, as long as the associated value sets have a validation type of either independent or
subset.

Rule Text
• Build complex expressions with AND and OR conditions.

• Rule text is validated.
Error message indicates why the rule

fails validations
The screenshot depicts an error that results from omitting an operator in one or more expressions in
a rule.
For numeric attributes, the valid operators are:
• Equal to
• Not equal to
• Less than
• Less than or equal to
• Greater than
• Greater than or equal to
For string attributes, the valid operators are:
• Equal to
• Not equal to
• STARTSWITH
• ENDSWITH
• CONTAINS
• DOESNOTCONTAIN

You can combine item and transactional item attributes in a rule and build complex expressions
using AND and OR conditions. As an example, you can create the following rule: If the Rear HD
Camera is selected AND the Edition selected is Premium. The system automatically displays the
component hierarchy of the item or transactional item attribute in the rule text when you create a rule
using the drag-and-drop action or contextual action.
For the rule above, the rule text displays the following: ITEM=‘AS49000C’. ‘CM65011’.’CM65002’
AND ‘AS49000C’TRANSACTIONALATTRIBUTE[“Edition”]=“Premium”.
The rule is validated to ensure that the rule engine can understand and process it. If the validation
fails, then an appropriate error message is displayed. You must correct the error before you save the
rule.

Topics

This section discusses how you can perform export operation item assignments.

Export Operation Item Assignments
• List the operations to which the components are assigned to

• Assignment status indicates pending work
• List relevant item and operation item attributes
This screenshots depicts that when you perform export operation item assignments, a complete
indented view of the multilevel item structure of the ATO model is displayed. A couple of critical
pieces of information on the Excel are the assignment status and assigned operation.
Assignment status is either Complete, Incomplete, Explicit, or Implicit. An Explicit assignment status
shows to which operation a component is directly assigned to. An Implicit assignment status applies
to the children when their parent is directly assigned to an operation. Incomplete and Complete
assignment status is system-derived. In a parent-child scenario, if you have assigned all the children,
then the assignment status for the parent is Complete, but if you haven’t assigned all the children,
then the assignment status for the parent is Incomplete.
You can quickly find out whether or not there is pending work by looking at the assignment status of
the top level ATO model. If it is Incomplete, then it means you still have pending work in terms of
operation item assignments. If it is Complete, then it means you have fully completed operation item
assignments.
Navigation
5. In the Actions menu, select Export Operation Item Assignments.

Topics

This section discusses how you can calculate manufacturing lead time for ATO model.

ATO Model Lead Time
• Calculate single level manufacturing lead time

• Use primary work definition
Set parameter to Yes to calculate

ATO model lead time
This screenshot shows the Calculate Manufacturing Lead Time page with the Include ATO Model
option selected. After you complete the ATO model work definition, optionally you can submit the
same scheduled process that calculates standard item manufacturing lead time to calculate the ATO
model lead time. Ensure that you set the Include ATO Model parameter to Yes. The scheduled
process updates the fixed, variable, and processing lead times in the item master. Manufacturing
doesn’t support configured item manufacturing lead time calculation. The application copies the ATO
model lead time to the configured item lead times during the configured item creation process.
As the ATO model lead times may be highly inflated, consider updating the configured item lead time
manually in the item master. You can enter more realistic values based on manufacturing history.
Navigation
2. In the Tasks region of the Overview page, under Additional Tasks, select Calculate
Manufacturing Lead Time.

Topics

This section discusses Work Definition report.

ATO Model Work Definition Report
Operation item attributes specific to

ATO model
This screenshot depicts the Work Definition Report, which is most useful to help verify that you have
set up the work definition correctly. It presents the complete view of a work definition, grouped by
operations. For each operation, you can view the assigned materials and resources, along with their
attributes.
When you print the report using the scheduled process, ensure that the Assemble to Order Model
Attributes parameter is set to Yes. You will then be able to view operation attributes that are specific
to an ATO model work definition, such as Option Dependent, Planning Percent, and Applicability
Rule. For the operation items, you can view whether a component is an optional component, and the
planning percentage for it.
If you set the Assemble to Order Component Hierarchy parameter to Yes, then the component
hierarchy information is displayed on the work definition report. A component hierarchy is the relative
path of the item node to the top level ATO model node. The delimiter is a period (.). The component
hierarchy of YK_OP21 in the screenshot is YK_ATO10.YK_OC2.YK_OP21. This says YK_OP21 is
under YK_OC2, and YK_OC2 is under YK_ATO10. This information is particularly useful because a
given component can reside at different levels in an ATO model item structure.
If you print the report from the work definition user interface, then the Assemble to Order Model
Attributes parameter and the Assemble to Order Component hierarchy parameter are defaulted to
Yes.

This screenshot shows a work definition report. The following ATO-specific fields are
highlighted:
• Optional
• Planning Percent (for Operation Item)
• Applicability Rule
• Option Dependent
• Planning Percent (for Operation)
Navigation
3. In the Search region, specify one or more search criteria (for example, item name or
work definition name) and click Search.
5. In the Actions menu, select Print Work Definition Report.

Topics

This section discusses configured item work order.

Configured Item Work Order
• Configured item work definition is:

– Created dynamically based on:
— Primary ATO model work definition
— Selected options and transactional item attributes
– Not stored
• Configured item work order is:
– Created based on the configured item work definition
– Reserved against the sales order
A configured item work definition is created dynamically based on the primary ATO model work
definition (Production Priority = 1), selected options, and transactional item attributes. The work
definition header is created based on the base ATO model work definition header. All the mandatory
operations, mandatory components, and related resources are included. Based on the options and
transactional item attributes that you select during the configuration process, the application also
includes the corresponding option-dependent operations, along with the optional components and
related resources. The application also explodes standard items with supply type as phantom under
the ATO model and includes the components that make up the phantom according to the item
structure. Configured item work definition is not stored. You can’t search for configured item work
definition on the user interface.
The configured item work order is then created based on the configured item work definition. The
Build in WIP attribute for the configured item must be Yes to allow work order creation. When the
work order is completed, the reservation is transferred to Oracle Fusion Inventory Management.

Configured Item Work Definition
Configured item work definition process flow
Selected Options, TIA, and Primary ATO Model Work Selected Options and TIAs
Mandatory Components Definition Based on Applicability Rules
Aggregate Same
Retrieve Configured Item Work Configured Item Work
Component Quantity in an
Configuration Details Definition Header Definition
Operation
Include Option Dependent Operations,

Include Mandatory Operations, Resources,
Resources, Options, and Option Dependent
and Mandatory Components
Mandatory Components
This screenshot depicts configured item work definition process flow.

Transactional Item Attributes on Work Order and
Execution Pages
You selected the option Premium during

configuration
This screenshot depicts the Complete with Details:Rs_001-30: Product train stop.
The transactional item attributes that the configured item work order and execution user interfaces
display are defined in Product Hub for an item class with application scope "Configuration Matching"
and "Manufacturing Execution." The Configuration Transactional Attributes region appears on the
page only if you select a transactional item attribute value during the configuration process. If the
transactional item attribute value is translatable, then the translated value appears on the page.
You can view the transactional item attributes in the following places on the user interface:
• Work Order header
• Edit Work Order Operation
• Complete with Details
Navigation
1. In the Navigator, select Work Execution.
2. In the Tasks region of the Overview page, select Review Dispatch List.
3. To view the transactional item attributes on the Work Order Header page, click the
hyperlinked work order operation.
4. To view the transactional item attributes on Edit Work Order Operation page, click the
Operations tab then the hyperlinked work order operation.
5. To view the transactional item attributes on Complete with Details page, expand the
operation row and click Complete with Details.

Demonstration: 5-1
• Viewing a Configured Item Work Order
This demonstration shows how you can view a configured item work order.

Demonstration: 5-2
• Reviewing an ATO Model Work Definition, Applicability Rules, and Performing Export
Operation Item Assignments
This demonstration shows how you can review an ATO model work definition, applicability rules, and
perform export operation item assignments.

Demonstration: 5-3
• Completing a Configured Item Work Order
This demonstration shows how you can complete a configured item work order.

Practice: 5-1
• Defining an ATO Model Work Definition
In this practice, you define an ATO Model Work Definition.

Summary

• Define a work definition for an ATO model
• Create an applicability rule for an option-dependent operation
• Explain how the configured item work order is created based on the ATO model work
definition

6
Procurement of Configured Items


50 minutes Practice
85 minutes Total
Learning Objectives

• Explain the role of purchasing in procuring configured items from suppliers
• Create blanket purchase agreements with pricing structures that accurately reflect
how purchased configured items are priced
• Explain how purchase orders leverage blanket purchase agreements to calculate the
purchase price for the configured item


Create
Make
Create
Purchasing Purchase
Order

Receive
Customer
Order
Plan
Availability

Topics
• Configured Item Procurement

• Blanket Purchase Agreements
This section discusses the procurement of a configured item.

Procurement Flow
Determine Price
from Blanket Create Purchase
Sales Order
Purchase Order
Agreement
This diagram depicts that after Global Order Promising determines that a sales order must be
fulfilled by an external supplier, Purchasing receives a request to create a purchase order. The price
of the configured item is calculated from an existing blanket purchase agreement.

Topics
• Configured Item Procurement

• Blanket Purchase Agreements
This section discusses Blanket Purchase Agreements.

Creating a Blanket Purchase Agreement
1. Select the Configure to Order Blanket Purchase Agreement document style.

2. Select or enter the supplier and site.
3. Add a base model to the agreement and specify a price for it.
4. Add options to the agreement and specify prices for them.
These are the high-level steps for creating a blanket purchase agreement.
Note: Optionally, you can specify option prices that are specific to a parent item or top model. The
parent item could be either an option class or a model item. The top model must be a model item.

Blanket Purchase Agreement Lines
This screenshot depicts the Blanket Purchase Agreement Lines page. It highlights the Parent Item,
Top Model and Price columns.
Key Concepts
Blanket purchase agreements store prices for ATO models and options that are used in procured
configured items. As a blanket purchase agreement contains only the models and options, the
purchase price of the configured item is calculated each time it is procured externally, ensuring that
the most accurate prices are considered in the calculation.
When you create a blanket purchase agreement for configured items, you must ensure that you
select a document style that is enabled for configuration ordering. By default, the Configure to Order
Blanket Purchase Agreement style is available to use.
You can specify whether the price of an option is specific to a parent item or to a top model. A top
model is the item from which the configured item is built.

• Parent Item: The buying organization's identification number or code for the immediate
parent item that is associated with the option or submodel
• Top Model: The buying organization's identification number or code for the top model item
that is associated with the option or submodel
• Price: The purchase price for the model or option as negotiated between the buyer and the
supplier. For blanket purchase agreements that are used to price and source configured
items, the price can be zero or a negative value to reflect discounts. If you provide a price for
an item that is associated with a parent item or top model, then the price takes effect only
when the item is included with the specified parent item or top model.
You can use both parent item and top model in approval rules to route these agreements to specific
individuals.
Navigation
• In the Tasks pane, select Create Agreement.
• In the Create Agreement window, select the Configure to Order Blanket Purchase Agreement
document style.
• Select or enter a supplier and site.
• Accept the other defaults and click Create.

Document Styles
This screenshot depicts the Edit Document Style: Configure to Order Style page. As mentioned in
the previous slide, you must select the correct document style before you create a blanket purchase
agreement to price a configured item. Document styles allow organizations to control the look and
feel of the application to match the usage of the purchasing document. A document style that
supports purchased configured items is available by default. If, however, you need to create a new
document style, make sure you set Configuration Ordering Enabled to Yes before you create your
blanket purchase agreement. This field enables the Parent Item and Top Model fields that are
applicable for this type of purchase.

Demonstration: 6-1
• Creating a Blanket Purchase Agreement
This demonstration shows how you can create a Blanket Purchase Agreement.

Practice: 6-1
• Creating a Sales Order for a configuration that results in a Purchase Order
In this practice, you create a Sales Order for a configuration that results in a Purchase Order.

Summary

• Explain the role of Purchasing in procuring configured items from suppliers
• Create blanket purchase agreements with pricing structures that accurately reflect
how purchased configured items are priced
• Explain how purchase orders leverage blanket purchase agreements to calculate the
purchase price for the configured item

7
Configured Items in Downstream Flows


30 minutes Practice
40 minutes Total
Learning Objectives

• Identify that inbound Advanced Shipment Notices (ASNs) can be processed for a line
containing a configured item
• Pick release and ship confirm a configured item
• Print a packing slip and commercial invoice showing component details for lines on a
shipment that contains a configured item

Submit Schedule
Order Management/ Sales Order Sales Order
Match Create Buy

Supply
Create
Item
Create
Purchasing Purchase
Order

Receive
Customer
Order
Plan
Availability

Topics
• Impact of a Configured Item

• Pick Release and Ship Confirmation
• Configured Item Details on Shipping Documents
This section discusses the impact of a configured item on Oracle Fusion Receiving, Oracle Fusion
Inventory, and Oracle Fusion Shipping.

Receive, Inventory, Pick, and Ship Configured Items
Configured Item
Receive Inventory Ship
This diagram depicts that a configured item is usually intended for a specific customer order, and is,
therefore, frequently as well as automatically picked and moved directly to a shipping lane from
receiving, rather than put into stock. The receiving agent has visibility to the associated sales order.
Then, the configured item can be received into inventory and picked and shipped, just as any other
item in inventory. The configured item doesn’t require any unique processes or special treatment to
be transacted in shipping applications.

Inbound ASNs for Configured Items
ASNs for inbound shipments are supported for procured configured items.
Advanced
Shipment Notice
DCAM*0923
Shipment
Supplier Receiving
Configured Item
DCAM*0923
This diagram depicts that ASNs that are sent by suppliers, external shipping providers, and internal
material transfer shipping organizations are supported for procured configured items.

Topics

• Pick Release and Ship Confirmation of Configured Items
This section discusses pick release and ship confirmation of configured items.

Manually Pick Releasing and Ship Confirming the
Order for a Configured Item
Task Overview:
1. Locate the shipment line for the order.
2. Pick release the shipment line.
3. Ship confirm the staged shipment line.
These are the high-level steps for manually pick releasing and ship confirming the order for a
configured item. You will learn the detailed steps in the demonstration. After you ship confirm the
line, you can view a variety of shipping documents.

Topics

• Pick Release and Ship Confirmation
This section discusses shipping documents, such as commercial invoice and packing slip, with
configured item details.

Commercial Invoice with Configured Item Details
This screenshot depicts a commercial invoice. You can view configured item information on the
fulfillment documentation. A Supply Chain Orchestration service fetches this information, called the
sales view, when you ship confirm an order. You can view the model and options selected for the
configured item on the commercial invoice and packing slip. The quantities of the components
contained in the configured item are displayed in terms of single-unit quantity only. This means that
the report shows the number of components that are required assuming the configured item quantity
is one. You can see this information highlighted on this commercial invoice.
You don’t have to perform any special document setup for configured items.

Packing Slip with Configured Item Details
This screenshot depicts a packing slip. The highlighted information on this packing slip shows the
components of a configured item.

Practice: 7-1
• Receiving a Purchase Order for a configured item
In this practice, you receive a Purchase Order for a configured item.

Practice: 7-2
• Navigating the Ship Confirm user interface
In this practice, you navigate the Ship Confirm user interface.

Instructor Note: Demonstrate this Practice.

Summary

• Identify that inbound Advanced Shipment Notices (ASNs) can be processed for a line
containing a configured item
• Pick release and ship confirm a configured item
• Print a packing slip and commercial invoice showing component details for lines on a
shipment that contains a configured item

Configure To Order Course - Student Guide

Uploaded by

Copyright:

Available Formats

Configure To Order Course - Student Guide

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Configure To Order Course - Student Guide

Uploaded by

Copyright:

Available Formats

1

Schedule: Timing Topic

After completing this course, you should be able to:

This slide lists the learning objectives for this course.

Oracle SCM Cloud: Configure to Order Implementation 1 - 2

• Lesson 1: Course Introduction

This slide lists the lessons in this course.

Oracle SCM Cloud: Configure to Order Implementation 1 - 3

This slide describes the instructional approach for this course.

Oracle SCM Cloud: Configure to Order Implementation 1 - 4

This course is intended for:

This slide describes the intended audience for this course.

Oracle SCM Cloud: Configure to Order Implementation 1 - 5

This slide describes the prerequisites for this course.

Oracle SCM Cloud: Configure to Order Implementation 1 - 6

Active links are in the Student Guide.

Oracle SCM Cloud: Configure to Order Implementation 1 - 7

• Cloud Customer Connect Community

Active links are in the Student Guide.

Cloud Customer Connect (https://cloudcustomerconnect.oracle.com/pages/home ) is Oracle's online

Oracle SCM Cloud: Configure to Order Implementation 1 - 8

Oracle SCM Cloud: Configure to Order Implementation 1 - 9

• Customer Connect Training Replays:

Active links are in the Student Guide.

Oracle SCM Cloud: Configure to Order Implementation 1 - 10

Overview of Configured Item Creation and

Schedule: Timing Topic

After completing this lesson, you should be able to:

This slide states the learning objectives for this lesson.

Oracle SCM Cloud: Configure to Order Implementation 2 - 2

Supply Match Create Buy

Manufacturing Create Work Complete

Oracle SCM Cloud: Configure to Order Implementation 2 - 3

This section discusses the concept of configure-to-order.

Oracle SCM Cloud: Configure to Order Implementation 2 - 4

Oracle SCM Cloud: Configure to Order Implementation 2 - 5

Vision Corporation is a computer hardware manufacturer that captures orders for

Oracle SCM Cloud: Configure to Order Implementation 2 - 6

Oracle SCM Cloud: Configure to Order Implementation 2 - 7

CM65040 CM65040 CM60010 CM60012

Mandatory option class

Oracle SCM Cloud: Configure to Order Implementation 2 - 8

• Oracle Supply Chain Management Cloud

Oracle SCM Cloud: Configure to Order Implementation 2 - 9

Oracle SCM Cloud: Configure to Order Implementation 2 - 10

This section discusses the end-to-end configured item fulfillment flow.

Oracle SCM Cloud: Configure to Order Implementation 2 - 11

Oracle SCM Cloud: Configure to Order Implementation 2 - 12

• View supply order in Supply Chain Orchestration.

Oracle SCM Cloud: Configure to Order Implementation 2 - 13

• View processing of supply order in Supply Chain Orchestration.

Oracle SCM Cloud: Configure to Order Implementation 2 - 14

Oracle SCM Cloud: Configure to Order Implementation 2 - 15

Supply Chain Orchestration Match Buy

Create Work Complete

Oracle SCM Cloud: Configure to Order Implementation 2 - 16

Oracle SCM Cloud: Configure to Order Implementation 2 - 17

Oracle SCM Cloud: Configure to Order Implementation 2 - 18

• Product Model – Items and item structures, item classes