Oracle Internal & Oracle Academy Use Only

Oracle SCM Cloud: Order

Management and Fulfillment Cloud
Implementation

Student Guide - Volume I

D96237GC30
Edition 3.0 | May 2018 | D102910

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Author Copyright © 2018, Oracle and/or its affiliates. All rights reserved.

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Contents

1 Course Introduction
Course Objectives 1-2
Course Outline 1-3
Instructional Approach 1-6
Resources for Implementation 1-7

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2 Overview of Order to Cash
Objectives 2-2
Order-to-Cash Flow 2-3
Business Case: End-to-End Flow 2-4
Topics 2-5
Order-to-Cash Functional Steps 2-7
Order to Cash: Order Capture and Fulfillment 2-8
Order to Cash: Applications and Key Features 2-9
Topics 2-10
Order Management Integrations 2-11
Topics 2-12
Business Flows 2-13
Business Flow: New Order 2-14
Business Flows 2-16
Trade Compliance Screening and Transportation Planning 2-17
Outbound Integration of Transportation and Trade Management 2-18
Business Flow: New Order With Trade Compliance Screening and
Transportation Planning 2-19
Business Flows 2-20
Business Flow: Return Order 2-21
Business Flows 2-22
Business Flow: Change Order 2-23
Business Flows 2-24
Ordering an Item With a Bill-Only Process 2-25
Topics 2-26
Order Creation with Different Types of Items 2-27
Order Creation: Standard Item 2-28
Order Creation with Different Types of Items 2-29
Order Creation: Configured Item 2-30

iii
 Order Creation with Different Types of Items 2-31
Order Creation: Coverage Item 2-32
Order Creation with Different Types of Items 2-33
Order Creation: Subscription Item 2-34
Demonstration: 2-1 2-35
Demonstration: 2-2 2-36
Practices: Overview 2-37
Summary 2-38

3 Pricing Strategies
Objectives 3-3

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Topics 3-4
Pricing Solution 3-6
Business Use Case 3-8
Pricing Strategies: Overview 3-9
Demonstration: 3-1 3-10
Topics 3-11
Pricing Strategies: Customer Pricing Profiles 3-12
Pricing Strategies: Pricing Segments 3-13
Pricing Strategies: Pricing Strategy Assignments 3-15
Pricing Strategies 3-16
Demonstration: 3-2 3-18
Price Execution: Derive Pricing Strategy 3-19
Topics 3-20
Matrixes: Overview 3-21
Matrix Classes 3-23
Matrix Types 3-24
Matrix Rules 3-25
Practice 3-1: Reviewing Pricing Segment and Strategy 3-26
Summary 3-27

4 Price Lists
Order-to-Cash Flow 4-2
Objectives 4-3
Topics 4-4
Price List Use Case 4-6
Price Lists 4-7
Price Lists: Types 4-8
Demonstration: 4-1 4-9
Demonstration: 4-2 4-10
Demonstration: 4-3 4-11

iv
 Topics 4-12
Charges 4-13
Topics 4-15
Adjustments: Tier-Based 4-16
Adjustments: Attribute-Based 4-18
Topics 4-19
Pricing of Standard Items 4-20
Topics 4-21
Pricing of Configurable Items (Models) 4-22
Topics 4-23
Pricing of Coverage Items 4-24

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Topics 4-27
Pricing of Subscription Items 4-28
Practices: Overview 4-30
Summary 4-31

5 Discount Lists
Order-to-Cash Flow 5-2
Objectives 5-3
Topics 5-4
Discount List Use Case 5-5
Topics 5-6
Discount Lists 5-7
Topics 5-8
Simple Discounts 5-9
Establishing Discounts for Configurable Models 5-10
Topics 5-11
Tier-Based Discounts 5-12
Topics 5-13
Attribute-Based Discounts 5-14
Topics 5-16
Manual Adjustments 5-17
Demonstration: 5-1 5-19
Practice: 5-1 5-20
Summary 5-21

6 Shipping Charge Lists

Order-to-Cash Flow 6-2
Objectives 6-3
Topics 6-4
Shipping Charge List Use Case 6-6

v
 Topics 6-7
Managing Shipping Charge Lists 6-8
Topics 6-10
Define Item-Based Shipping Charges 6-11
Create Shipping Charges 6-12
Demonstration: 6-1 6-13
Summary 6-14

7 Guidelines
Order-to-Cash Flow 7-2
Objectives 7-3

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Topics 7-4
Guidelines: Overview 7-6
Guideline Validation 7-8
Topics 7-9
Guidelines: Setup 7-10
Make Price Elements Eligible for Use in Guidelines Creation 7-11
Create Conditions in the Pricing Matrix Class 7-12
Map a Matrix Class to the Pricing Charge Guideline Matrix Type 7-13
Map the Pricing Operation to the Pricing Process 7-14
Demonstration: 7-1 7-15
Summary 7-16

8 Configure Orders
Order-to-Cash Flow 8-2
Objectives 8-3
Topics 8-4
Configurable Products: Explained 8-6
Configurator 8-7
Configurator Modeling 8-8
Topics 8-9
Selecting the Options of a Configurable Product: Configurator Runtime 8-10
Configurator Runtime User Interface 8-11
Configurator UI Navigation Schemes 8-12
Single-Page Navigation 8-13
Dynamic Tree Navigation 8-15
Step-by-Step Navigation 8-16
Topics 8-17
Integration with Oracle Fusion Pricing 8-18
Demonstration: 8-1 8-19

vi
 Practice: 8-1 8-20
Summary 8-21

9 Change Order Processing

Order-to-Cash Flow 9-2
Objectives 9-3
Order-to-Cash Data Flow 9-4
Change Order Business Flow 9-6
Demonstration: 9-1 9-7
Summary 9-8

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10 Global Order Promising: Introduction and Overview
Order-to-Cash Flow 10-2
Objectives 10-3
Topics 10-4
Functional Architecture: Oracle Supply Chain Planning Cloud and
Global Order Promising 10-6
Functional Integration Touchpoints 10-7
Functional Components 10-8
Topics 10-10
Key Functionality 10-11
Advanced Fulfillment Techniques 10-13
Promising of Configure-to-Order Items 10-14
Work Area for Managing Order Backlog 10-15
Summary 10-16

11 Order Promising Rules: Sourcing Rules and ATP Rules

Order-to-Cash Flow 11-2
Objectives 11-3
Topics 11-4
Sourcing Rules 11-6
Global and Local Sourcing Rules 11-7
Global Sourcing Rules and Assignment 11-8
Creating Sourcing Rules 11-9
Assigning Sourcing Rules 11-10
Supported Assignment Levels for Global Sourcing 11-11
Sourcing Rule and Assignment Setup: Example 11-12
Local Sourcing Rules 11-13
Demonstration: 11-1 11-14
Topics 11-15
ATP Rules 11-16

vii
 Promising Modes 11-17
Supported Promising Modes 11-18
Supply Chain Availability Search Mode 11-19
ATP Rule Assignment 11-20
Practices: Overview 11-21
Summary 11-22

12 Key Order Promising Functionality

Order-to-Cash Flow 12-2
Objectives 12-3
Topics 12-4

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Order Promising Workflow 12-6
Check Availability: Key Features 12-8
Check Availability 12-9
Alternate Availability Options 12-11
Topics 12-12
Capable-to-Promise 12-13
Topics 12-14
Profitable-to-Promise 12-15
Demonstration: 12-1 12-16
Topics 12-17
Fulfillment Line Splits 12-18
Topics 12-19
End Item Substitution 12-20
Topics 12-21
Support Advanced Fulfillment Techniques 12-22
Topics 12-24
CTO Promising 12-25
Topics 12-26
Global Order Promising Work Area 12-27
Practice: 12-1 12-28
Summary 12-29

13 Data Collection and Global Order Promising Administration

Order-to-Cash Flow 13-2
Objectives 13-3
Topics 13-4
Data Collections for Global Order Promising 13-6
Data Collections Using File-Based Import 13-9
Data for Global Order Promising Collected Through File-Based Import 13-10
Data for Order Management Collectible Through File-Based Import 13-11

viii
 Data Collection Configuration Summary 13-12
Data Collection from Files: Uploading the File 13-14
Data Collection from Files: Running the Scheduled Process 13-15
External Source System Setup 13-16
Cross-Reference Data Collections Setup Detail 13-17
Viewing the Cross-Reference Collected Data Setup Detail 13-19
Topics 13-22
Administration: Restarting the Global Order Promising Engine 13-23
Topics 13-24
Administration: Real-Time Supply Update 13-25
Summary 13-26

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14 Order Import
Order-to-Cash Flow 14-2
Objectives 14-3
Topics 14-4
Order-to-Cash Data Flow 14-6
Importing Orders 14-8
Additional Considerations for the Import of Coverage and Subscription Lines 14-9
Import of Coverage Order Line Against Configured Covered Items 14-10
Modifications and Cancellations of Coverages Through Order Import 14-11
Import of Coverage Return Lines 14-12
Import of Subscription Lines 14-13
Topics 14-14
Direct Web Service Integration 14-15
Topics 14-17
File-Based Import 14-18
Import Processing 14-19
Topics 14-23
Business-to-Business Messaging 14-24
Demonstrations 14-25
Practices: Overview 14-26
Summary 14-27

15 Transformation
Order-to-Cash Flow 15-2
Objectives 15-3
Topics 15-4
Order-to-Cash Data Flow 15-5
Topics 15-7
Transformation: Introduction 15-8

ix
 Sales Order Versus Transformed Order 15-9
Transformed Order: Example 15-10
Topics 15-11
Product Transformation 15-12
Topics 15-13
Product-to-Product Transformation 15-14
Attribute-to-Product Transformation 15-15
Context-to-Product Transformation 15-16
Product-to-Attribute Transformation 15-17
Attribute-to-Attribute Transformation 15-18
Context-to-Attribute Transformation 15-19

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Topics 15-20
Transformation Using Oracle Business Rules 15-21
Setting Up Transformation 15-23
Demonstrations 15-24
Practices: Overview 15-25
Summary 15-26

16 Orchestration Process Definitions

Order-to-Cash Flow 16-2
Objectives 16-3
Topics 16-4
Order-to-Cash Data Flow 16-6
Topics 16-9
Task Types 16-10
Topics 16-12
Managing an Orchestration Process Definition 16-13
Topics 16-16
Dependencies Between Steps 16-17
Demonstration: 16-1 16-21
Topics 16-22
Oracle Business Rules (OBR) in Orchestration Process Definitions 16-23
Demonstration: 16-2 16-25
Topics 16-26
Validating New or Updated Orchestration Process Definitions 16-27
Topics 16-28
Setting Up Orchestration Processes for Coverage Items 16-29
Setting Up Orchestration Processes for Coverage Items: Fulfillment
Lines in Same Instance 16-30
Setting Up Orchestration Processes for Coverage Items: Fulfillment
Lines in Different Instances 16-31

x
 Practices: Overview 16-32
Summary 16-33

17 Status Management
Order to Cash Flow 17-2
Objectives 17-3
Topics 17-4
Order to Cash Data Flow 17-5
Topics 17-7
What Are Statuses? 17-8
Topics 17-10

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How Statuses Are Assigned 17-11
Topics 17-12
Status Setup 17-13
Setting Up Status Values 17-14
Setting Up Task Status Conditions 17-16
Setting Up Status Conditions 17-20
Orchestration Process Status Conditions 17-21
Fulfillment Line Status Conditions 17-22
Demonstration 17-24
Practices: Overview 17-25
Summary 17-27

18 Change Management and Process Assignment

Order-to-Cash Flow 18-2
Objectives 18-3
Topics 18-4
Order-to-Cash Data Flow 18-5
Topics 18-7
How Does Change Management Work? 18-8
Compensation: Example 18-12
Demonstration: 18-1 18-15
Demonstration: 18-2 18-16
Topics 18-17
Order-to-Cash Data Flow 18-18
Managing Orchestration Process Assignment Rules 18-19
Orchestration Groups 18-20
Demonstration: 18-3 18-21
Practices: Overview 18-22
Summary 18-23

xi
19 Orchestration Process Planning, Deployment, and Jeopardy
Order-to-Cash Flow 19-2
Objectives 19-3
Topics 19-4
Order-to-Cash Data Flow 19-5
Topics 19-7
What Is Planning? 19-8
Topics 19-11
What Is Jeopardy? 19-12
Managing Jeopardy Priorities 19-14
Managing Jeopardy Threshold Definitions 19-15

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Demonstration: 19-1 19-18
Topics 19-19
Releasing and Deploying the Orchestration Process Definition 19-20
Practices: Overview 19-21
Summary 19-22

20 Processing Constraints, Approvals, and Hold Codes

Order-to-Cash Flow 20-2
Objectives 20-3
Topics 20-4
Order-to-Cash Data Flow 20-5
Topics 20-7
What Are Processing Constraints? 20-8
Processing Constraint Components 20-9
Managing Constraint Entities 20-11
Demonstration: 20-1 20-13
Demonstration: 20-2 20-14
Managing Processing Constraints 20-15
Topics 20-16
Approvals 20-17
High-Level Approval Flow 20-18
Approvals 20-20
Demonstration: 20-3 20-21
Topics 20-22
Holds 20-23
Setting Up Hold Codes 20-25
Demonstration: 20-4 20-26
Demonstration: 20-5 20-27
Practices: Overview 20-28
Summary 20-29

xii
21 External Integration
Order-to-Cash Flow 21-2
Objectives 21-3
Topics 21-4
Order-to-Cash Data Flow 21-5
Topics 21-8
Managing Integration with Oracle Fusion Order Management 21-9
Managing External Interface Web Service Details 21-10
Topics 21-12
Oracle Integration Cloud Service 21-13

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Topics 21-15
Manage External Interface Routing Rules 21-16
Topics 21-18
Business Event Notification 21-19
Topics 21-22
Fulfill Order Task Layer Integration 21-23
Practices: Overview 21-24
Summary 21-25

22 Extending Order Management

Objectives 22-2
Topics 22-3
Extending Integration with Oracle Fusion Receivables 22-5
Extending Integration with Oracle Fusion Receivables: Example Use Cases 22-6
Integration with Oracle Fusion Receivables: High-Level Steps 22-7
Topics 22-8
Using Extensions with Order Management 22-9
Using Extensions with Order Management: What Extensions Can Do 22-10
Using Extensions with Order Management: Flow and Extension Points 22-11
Topics 22-13
Page Composer 22-14
Topics 22-15
Extensible Flexfields 22-16
Extensible Flexfields: Example Use Case 22-17
Extensible Flexfields: Uses of Flexfields 22-18
Extensible Flexfields: Setup 22-19
Summary 22-20

xiii
23 Overview of Shipping
Order-to-Cash Flow 23-2
Objectives 23-3
Topics 23-4
Shipping Process Flow 23-6
Shipping Process Flow and User Roles 23-7
Topics 23-9
Pick Release Process Flow 23-10
Integrating with an External Manufacturing System 23-12
Topics 23-13
Ship Confirm Process Flow 23-14

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Demonstration: 23-1 23-16
Summary 23-17

24 Shipping Basic Setup

Order-to-Cash Flow 24-2
Objectives 24-3
Topics 24-4
Shipping Parameters 24-6
Shipping Parameters: General 24-8
Shipping Parameters: Pick Release 24-10
Shipping Parameters: Shipment Grouping 24-12
Topics 24-13
Carriers 24-14
Topics 24-16
Shipping Cost Types 24-17
Topics 24-18
Shipping Documents 24-19
Shipping Document Sequences 24-20
Topics 24-22
Shipping Exceptions 24-23
Topics 24-25
Shipping Lookups 24-26
Topics 24-28
Shipping Process Flow and User Roles 24-29
Demonstration: 24-1 24-31
Practice: 24-1 24-32
Summary 24-33

xiv
25 Pick Wave Management
Order-to-Cash Flow 25-2
Objectives 25-3
Topics 25-4
What Is a Pick Wave? 25-6
Pick Wave Usage 25-7
Pick Release Process Options 25-8
Pick Release 25-9
Topics 25-10
Movement Request 25-11
Topics 25-12

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Pick Wave Release Rule 25-13
Demonstration: 25-1 25-14
Topics 25-15
Release Sequence Rules 25-16
Topics 25-18
Picking Rules 25-19
Picking Rule Assignments 25-21
Topics 25-23
Pick Slip Grouping Rule 25-24
Practice 25-1: 25-26
Summary 25-27

26 Pick Confirmation
Order-to-Cash Flow 26-2
Objectives 26-3
Topics 26-4
Pick Confirmation: Overview 26-6
Release Process Options 26-8
Topics 26-9
Practice: 26-1 26-12
Summary 26-13

27 Shipment Confirmation
Order-to-Cash Flow 27-2
Objectives 27-3
Topics 27-4
What Is Ship Confirm? 27-6
Pick Release and Ship Confirmation Process Options 27-7
Topics 27-8
One-Step Shipping 27-9

xv
 Ship Confirmation 27-11
Topics 27-13
Ship Confirm Rules 27-14
Topics 27-16
Ship Confirm Rule: Shipping Parameters 27-17
Topics 27-18
Consolidation of Backordered Lines 27-19
Shipment Consolidation 27-20
Practice: 27-1 27-22
Summary 27-23

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28 Conclusion
Order-to-Cash Flow 28-2
Objectives 28-3
Practice: 28-1 28-4
Practice: 28-2 28-5
Summary 28-6

xvi
 1
Course Introduction

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Part 1: Introduction
Order Management and Fulfillment Cloud
Implementation

Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

Course Objectives

After completing this course, you should be able to:

• Demonstrate the initial order creation, scheduling, fulfillment,
and shipping through to final invoice creation in the ERP
Cloud
• Explain the setup of the products, within SCM Cloud, which
are used to implement the order-to-cash process

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Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 1 - 2

Course Outline

• Part 1: Introduction
– Lesson 1: Course Introduction
– Lesson 2: Oracle Order-to-Cash Cloud Overview
• Part 2: Pricing
– Lesson 3: Pricing Strategies
– Lesson 4: Price Lists
– Lesson 5: Discount Lists
– Lesson 6: Shipping Charge Lists

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– Lesson 7: Pricing Guidelines
• Part 3: Order Capture and Change Processing
– Lesson 8: Configure Orders
– Lesson 9: Change Order Processing
• Part 4: Order Promising
– Lesson 10: Global Order Promising
– Lesson 11: Order Promising Rules

Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 1 - 3

Course Outline

– Lesson 12: Key Order Promising Functionality

– Lesson 13: Data Collection and Global Order Promising
Administration
• Part 5: Order Import and Transformation
– Lesson 14: Order Import
– Lesson 15: Transformation
• Part 6: Orchestration

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– Lesson 16: Defining Orchestration
– Lesson 17: Managing Orchestration Statuses
– Lesson 18: Change Management and Process Assignment
– Lesson 19: Orchestration Process Planning,
Deployment, and Jeopardy
– Lesson 20: Defining Processing Constraints and
Hold Codes

Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 1 - 4

Course Outline

• Part 7: Integration
– Lesson 21: Integration
• Part 8: Extensibility
– Lesson 22: Extending Order Management
• Part 9: Shipping
– Lesson 23: Introduction to Shipping

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– Lesson 24: Shipping – Basic Setup
– Lesson 25: Pick Wave Management
– Lesson 26: Pick Confirmation
– Lesson 27: Ship Confirm
• Part 10: Conclusion
– Lesson 28: Conclusion

Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 1 - 5

Instructional Approach

Each lesson in this course begins with your instructor presenting

important concepts related to the functional setup or functionality
of the Oracle Cloud Order-to-Cash.
Each lesson may also require you to do one or more of the
following:
• Complete a portion of the setup in the application.

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• Discuss key setup decisions and best practices.
• Complete a knowledge assessment quiz.

Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 1 - 6

 Resources for Implementation

For documentation, videos, and additional information, see:

• Oracle Supply Chain Management Cloud documentation,
available in the Oracle Help Center

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docs.oracle.com

Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

To locate the Oracle Supply Chain Management Cloud resources on the Oracle Help Center,
do the following:
1. Go to the Oracle Help Center at: docs.oracle.com.
2. Click the Cloud icon.
3. On the Cloud Documentation page, click the Applications tab, and then click SCM Core.
4. On the Oracle Supply Chain Management Cloud page, click the Books tab.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 1 - 7

Oracle Internal & Oracle Academy Use Only
 2

Overview of Order to Cash

Part 1 Introduction

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Order Management and Fulfillment Implementation

Copyright © 2018, Oracle and/or its affiliates. All rights reserved.

Objectives

After completing this lesson, you should be able to:

• Explain the key features of Order Management Cloud
• Identify the interactions between Order Management, Pricing, Configurator, Shipping,
Global Order Promising, and Receivables
• Differentiate between a draft order and an order revision
• Create and submit a new order using the Order Management Cloud user interface
• Create a return order
• Create an order with subscription and coverage

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• Track an order during various stages of fulfillment using the
Order Management work area

Copyright © 2018, Oracle and/or its affiliates. All rights reserved.

Oracle SCM Cloud: Order Management and Fulfillment Implementation 2 - 2

 Order-to-Cash Flow
Oracle Order-to-Cash Cloud: Overview

Optimize Sourcing Orchestrate

& Schedule Fulfillment
Manage, View, & Pick & Ship
Enrich Order

Order Global Order

Inventory Finance
Create, Configure, Management Promising
Bill & Collect
& Price Order

Oracle Internal & Oracle Academy Use Only

Copyright © 2018, Oracle and/or its affiliates. All rights reserved.

This diagram presents the overall order-to-cash flow. An order is created or captured in Oracle Order
Management Cloud. The order is priced using Oracle Fusion Pricing. Products can be configured
using Oracle Fusion Configurator. The order is enriched to include useful fulfillment information.
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 in the case
of models and kits. Order Management Cloud orchestrates order fulfillment, which includes but isn’t
limited to reserving material, sending requests to ship material, sending requests to generate
invoices, and billing customers. Oracle Fusion Shipping ships the product to the customer. Oracle
Financials Cloud sends the invoices to the customer.
You can use Order Management Cloud to fulfill standard products, services, configurations, models,
and kits. You can also use various fulfillment methods, such as drop shipment, back-to-back, and
internal transfers.

Oracle SCM Cloud: Order Management and Fulfillment Implementation 2 - 3

 Business Case: End-to-End Flow

Vision Corporation is a high-tech manufacturer that captures orders for standard items, kits,
and configured products from multiple channels. Some products are manufactured in-house
and shipped from its facilities. Vision also fulfills orders using drop ship and back-to-back
fulfillment. After the orders are fulfilled, the invoices are sent to the customer.

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Copyright © 2018, Oracle and/or its affiliates. All rights reserved.

Some orders are fulfilled directly by Vision’s supplier using drop ship fulfillment. In certain cases,
Vision procures products from its supplier specifically against an order and ships from its own facility
using back-to-back fulfillment.
Vision Corporation receives and processes change orders from its customers, and, in some cases,
customers opt to return the products that were shipped to them previously.
A key business driver for Vision is improving customer satisfaction by processing orders efficiently
and meeting delivery promises. An important key requirement is for Vision order managers to get
visibility into possible order fulfillment exceptions, so that they can take steps to avoid problems
before the problems impact promise dates.
After evaluating many vendors, Vision Corporation has decided to implement the Oracle Cloud
order-to-cash solution.
This course focuses on key solution components to implement the Cloud order-to-cash solution for
Vision Corporation.

Oracle SCM Cloud: Order Management and Fulfillment Implementation 2 - 4

 Topics

• Order to Cash
• Order Management: Integrations
• Business Flows
– New Order
– New Order with Trade Compliance Screening
– Return Order
– Change Order
– Order with a Bill-Only Process
• Order Creation with Different Types of Items

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– Standard Item
– Configured Item
– Coverage Item
– Subscription Item

Copyright © 2018, Oracle and/or its affiliates. All rights reserved.

In this lesson, we discuss the topics listed on this slide.

Oracle SCM Cloud: Order Management and Fulfillment Implementation 2 - 5

 Topics

• Order to Cash
• Order Management: Integrations
• Business Flows
– New Order
– New Order with Trade Compliance Screening
– Return Order
– Change Order
– Order with a bill-only process
• Order Creation with Different Types of Items

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– Standard Item
– Configured Item
– Coverage Item
– Subscription Item

Copyright © 2018, Oracle and/or its affiliates. All rights reserved.

This section provides an overview on the order-to-cash process.

Oracle SCM Cloud: Order Management and Fulfillment Implementation 2 - 6

 Order-to-Cash Functional Steps

Enter customer, select products, collaborate*, configure products, price, sales

Capture credit, check supply, tax, check credit*, check for trade compliance*, validate,
* Indicates optional
get approval*, submit, print order, email order, revise, return functionality

Schedule
Reserve
Fulfill Plan transportation*
Check trade compliance*
Ship
Drop ship

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Back-to-back

Invoice
Cash Bill
Collect

Copyright © 2018, Oracle and/or its affiliates. All rights reserved.

This lesson will give you an overview of the end-to-end flow from order creation to invoice.
• Creation of an order for an item
• Orchestration setup
• Pricing administration and execution
• Order promising and availability
• Shipping
Here is a very broad view of the functional steps of the order-to-cash process, some of which are covered in
the demonstrations and activities within this lesson:
• The order is captured. You enter the customer, billing, shipping, sales credit, and product information,
and configures and prices the order. You can place orders for subscriptions and can include coverages
on certain items, for example, a warranty is the coverage on a covered item such as a refrigerator. You
can order coverage at the same time as the covered item (immediate coverage) or later (delayed
coverage) and configure coverages to be billed once or on a recurring basis. You can perform the
credit check as part of the validation when submitting an order or during shipment. To check credit at
shipment, the you must write the step into the orchestration process definition. Selecting the credit
check parameter activates the check. If the parameter is set to No, then the credit is still checked, if it’s
part of the orchestration process definition.
• The order information is validated and feedback is provided. Make any necessary corrections and
resubmit the order.
• Then, based on the products on the order and what needs to be done to process the order,
orchestration processes are assigned to order lines to fulfill them.
• After the order is fulfilled, invoices are created and the customer is billed.
• Delayed coverage: You can order it only when the order line of the covered item is in Closed status.

Oracle SCM Cloud: Order Management and Fulfillment Implementation 2 - 7

 Order to Cash: Order Capture and Fulfillment
Direct
EDI
Call Center
• Order Capture
– Focus: Capture customer demand
Web POS
– Channel-specific: Web, mobile, call
center, direct sales, partners
– Customer-facing: Pricing,
configuring, availability, order status Order Capture

• Order Fulfillment Hub Fulfill

– Focus: Orchestrating and monitoring

fulfillment across all channels using WMS

Oracle Internal & Oracle Academy Use Only

all available fulfillment options 3PL
– Inward-facing: Coordination with
Store
other Oracle SCM Cloud products
(Purchasing, Manufacturing, and Supplier
CM
Inventory Management) and other
solutions to fulfill orders
Copyright © 2018, Oracle and/or its affiliates. All rights reserved.

Order Management Cloud is a key solution in the order-to-cash flow. This diagram depicts the
different functions of order capture and fulfillment, and the variety of channels that are involved.
Capture orders in any of the following ways:
• From various channels using Web services.
• Through order import. See the Order Import lesson for details.
• By creating orders in Order Management Cloud. You can configure items, price them,
calculate tax, and so on.
Fulfill orders:
• Use the Order user interface to monitor the fulfillment process.
• View statuses of the order lines and the associated orchestration processes.
• Revise orders with carefully controlled and validated changes.
• Define constraints to determine the types of changes that can be made, who makes changes,
and when changes are made.
Key
• EDI: Electronic Data Interchange
• POS: Point of Sale
• 3PL: Third-Party Logistics
• WMS: Warehouse Management System
• CM: Contract Manufacturing

Oracle SCM Cloud: Order Management and Fulfillment Implementation 2 - 8

 Order to Cash: Applications and Key Features
Order Pricing Configurator
• Search and view • Targeting pricing strategies • Dynamic runtime user interface
• Create, edit, change, copy – Customer pricing profiles – Embedded task flow
• Drafts, revisions – Pricing segments – User interface conditions
– Pricing strategies
• Select products – simple, configured • Validation Services
• Pricing and shipping rules
• Price – Product and service pricing – Headless
• Promising and availability – Price list import – Integrated into Order Management
• Payment, credit check – Cost plus pricing • Configuration pricing
• Shipping preferences – Discounts • Transactional item attributes
• Tax – Tier and attribute-based adjustment • Supplemental structure
• Returns – Shipping and freight charges • Constraint rules
• Attachments – Currency conversion
Shipping
• Dashboard and analytics – Tax integration
– Manual adjustments • Pick and pack
• Import – create, change, edit • Record freight cost
– Guidelines
• Defaulting and validation • Configurable pricing processes
•

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All orchestration functionality – Configurable price execution process
• Extensibility – Pricing totals
• Error notification and handling – Pricing results in price breakdown
• Print and email order – Price validation
• Approvals – Invoking external services from
• Coverages algorithms
• Subscriptions

Copyright © 2018, Oracle and/or its affiliates. All rights reserved.

This slide lists major features of the order-to-cash flow.

Oracle SCM Cloud: Order Management and Fulfillment Implementation 2 - 9

 Topics

• Order to Cash
• Order Management: Integrations
• Business Flows
– New Order
– New Order with Trade Compliance Screening
– Return Order
– Change Order
– Order with a bill-only process
• Order Creation with Different Types of Items

Oracle Internal & Oracle Academy Use Only

– Standard Item
– Configured Item
– Coverage Item
– Subscription Item

Copyright © 2018, Oracle and/or its affiliates. All rights reserved.

This section discusses Order Management integrations.

Oracle SCM Cloud: Order Management and Fulfillment Implementation 2 - 10

 Order Management Integrations Shipping,
Transportation
Procurement,
Management, Global
Inventory,
Trade Management,
Receivables,
Credit Check
Receiving

Published Events
Order, Ship, Bill, Receive, PO, and
Oracle Cloud
Sales Order, Order Order Status Applications
CPQ

Fulfilment
Status,* Change Order Oracle Order
Capture

Management Order and

API E-Business
Cloud Gateway
Order Status* Suite
Customer-Specific or OHS
Other
Customer-Specific
Other

Oracle Internal & Oracle Academy Use Only

LEGEND
Usage
Integration among Oracle Fusion applications or
to other Oracle applications
Integration using web services
Sample integrations provided
*
Copyright © 2018, Oracle and/or its affiliates. All rights reserved.

The following integrations are supported:

• Integrations between Oracle Fusion applications. These applications are integrated across a
process. For example, shipping a standard product includes a seamless integration of Oracle
Order Management Cloud, which comprises several Oracle Fusion applications, and Oracle
Fusion Shipping. Oracle Transportation Management Cloud Service, Oracle Global Trade
Management Cloud Service, and credit check require additional implementation to enable the
integration.
• Integrations with other Oracle applications that aren’t part of Oracle Supply Chain
Management Cloud, for example, Oracle CPQ (Configure, Price, Quote) Cloud Service,
Oracle Commerce Cloud Service, Oracle E-Business Suite. These integrations are provided
as working sample integrations.
• Web services you can use to integrate with external order capture and fulfillment systems.
•The diagram depicts the capture flows and fulfillment flows that Order Management enables.

Oracle SCM Cloud: Order Management and Fulfillment Implementation 2 - 11

 Topics

• Order to Cash
• Order Management Integrations
• Business Flows
– New Order
– New Order with Trade Compliance Screening
– Return Order
– Change Order
– Order With a Bill-Only Process
• Order Creation with Different Types of Items

Oracle Internal & Oracle Academy Use Only

– Standard Item
– Configured Item
– Coverage Item
– Subscription Item

Copyright © 2018, Oracle and/or its affiliates. All rights reserved.

This section discusses various business flows.

Oracle SCM Cloud: Order Management and Fulfillment Implementation 2 - 12

 Business Flows

• New order
• New order with trade compliance screening
• Return order
• Change order (order revision)
• Order with a bill-only process

Oracle Internal & Oracle Academy Use Only

Copyright © 2018, Oracle and/or its affiliates. All rights reserved.

This overview lesson examines the following order variations:

• Creating a new order: What does the flow look like?
• New order with trade compliance screening: What is the flow of a new order that is
subjected to screening to verify it complies with trade regulations?
• Returning an order: What are the requirements for a return order? How do I create a return
order?
• Revising an order: This is covered in its own lesson because of the controls and constraints
that you can define to control the different types of changes you can make to an existing
order that is in progress. Only the flow is reviewed for now.
• Order with bill-only process: Flow that is used when you place an order for something
nonshippable, such as a Cloud subscription.

Oracle SCM Cloud: Order Management and Fulfillment Implementation 2 - 13

 Business Flow: New Order

Add Check Validate,

Header Configure
Items Supply Book
Order
Price

Pick Ship
Fulfillment Schedule Reserve
Release Confirm

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Cash Invoice

Copyright © 2018, Oracle and/or its affiliates. All rights reserved.

This flow chart depicts the steps of an order-to-cash business flow for a new order.
The order header captures information, such as customer, business unit that is expected to fulfill the
order, date by when the order must be fulfilled, and who gets credit for the sale. After you create the
header, you can run a credit check on the customer.
Then, you add items to the order. Items can be shippable, such as a server, or nonshippable, such
as an online music subscription. You can configure certain items. You can add coverage, such as a
warranty, to a standard covered item or to a configured covered item. Items, when enabled for
contract coverage in the Product Information Management work area, become eligible to have
coverages ordered against them.
If you select a coverage, then a coverage line is added to the order. Order Management associates
the coverage line with the covered item. If the covered item line splits, then the coverage item line
stays with it. For example, 4 out of the 6 covered product lines are fulfilled by warehouse 001, while
2 are fulfilled by warehouse 003. The warranty lines for these product lines also split into 4 and 2.
The items are priced based on pricing rules defined for the pricing strategy. You can override prices
by applying a manual adjustment. You can set up a one-time charge or a recurring one. No strict
association exists between charge periodicity and billing periodicity. For example, you can set up a
one-time charge and recurring billing or a recurring charge and one-time billing.
After you add the items, Order Promising verifies the supply or availability of the products and then
the order is validated and submitted for fulfillment.
The ordered item is scheduled and reserved. For items that must be shipped to the customer, you
must pick release and ship confirm the order. After the shipment is confirmed, you can invoice the
customer per contractual terms.

Oracle SCM Cloud: Order Management and Fulfillment Implementation 2 - 14

The fulfillment steps here are for an item being scheduled and shipped. But as indicated
in the order-to-cash functional steps, you can fulfill the item on an order using any of the
following:
Drop ship
Back-to-back
Internal material transfer
Configure-to-order
After you create the order, you have the option of printing or emailing the order.
Note: You can add coverage to a covered item that is in a different order, as long as that
covered line is closed. Your coverage item is considered a new order because the order for the
associated covered item is closed. When you create the order for the coverage item, select

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Previous Order and select the coverable line.

Oracle SCM Cloud: Order Management and Fulfillment Implementation 2 - 15

 Business Flows

• New order
• New order with trade compliance screening
• Return order
• Change order (order revision)
• Order with a bill-only process

Oracle Internal & Oracle Academy Use Only

Copyright © 2018, Oracle and/or its affiliates. All rights reserved.

This overview lesson examines the following order variations:

• Creating a new order: What does the flow look like?
• New order with trade compliance screening: What is the flow of a new order that is
subjected to screening to verify it complies with trade regulations?
• Returning an order: What are the requirements for a return order? How do I create a return
order?
• Revising an order: This is covered in its own lesson because of the controls and constraints
that you can define to control the different types of changes you can make to an existing
order that is in progress. Only the flow will be reviewed for now.
• Order with bill-only process: Flow that is used when you place an order for something
nonshippable, such as a Cloud subscription.

Oracle SCM Cloud: Order Management and Fulfillment Implementation 2 - 16

 Trade Compliance Screening and Transportation Planning

TRANS- SHIPPING &

PORTATION INVENTORY
ORDER PLANNING EXPORT
PROMISING DOCUMENTS

COMPLIANCE TRANS-
SCREENING PORTATION
EXECUTION
ORDER
CAPTURE INVOICE &
COLLECT

Capture Promise Orchestrate

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Order Global Trade Global Order Transportation Inventory
Configurator
Management Management Promising Management Management

Maximize customer service levels Minimize order lead times Minimize logistics costs Mitigate supply chain risk

Copyright © 2018, Oracle and/or its affiliates. All rights reserved.

Trade compliance and transportation are integrated into the order flow. This diagram depicts
the tasks that are performed as part of the order-to-cash flow, as well as the applications that
enable this flow.
1. Capture:
• Creation of customer orders through one or more channels (for example, direct sales, partner
sales, EDI, web commerce, call center)
• Configuration of products for configure-to-order items
• Pricing, including shipping and taxes
• Screening and validation (for example, denied party screening)
2. Promise:
• Plan how to source the order (finished goods inventory, purchased from supplier, manufacturing
capacity)
• Plan how to deliver the order
3. Orchestrate:
• Define required steps to fulfill the order
• Execute the steps (for example, ship goods, track shipments)
• Monitor and resolve exceptions
• Invoice when order is complete

Oracle SCM Cloud: Order Management and Fulfillment Implementation 2 - 17

 Outbound Integration of Transportation and Trade Management

Trade Management Integration

Order Management Trade Management
• Perform compliance screening from Order
Management
Receiving
• Perform compliance screening from Return to Vendor
Shipping Sales Order /
Transfer Order
Transportation Management Integration Inventory
Transfer Order
• Order lines sent from Order Management
for transportation planning
• Transportation planning details are sent Work In Process

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Outside Processing
back to Shipping for processing

Transportation
Shipping Trade Management
Management

Copyright © 2018, Oracle and/or its affiliates. All rights reserved.

Trade Management integration enables order managers to perform compliance screening

directly from both Order Management and Shipping. Order managers can request compliance
screening for order lines. Additionally, shipping users can check trade compliance for shipment
lines.
Transportation Management integration enables order managers to send order lines to a
transportation management system for planning. After the order lines are planned, the
transportation details are sent back to Shipping for further processing.
This diagram depicts the outbound integration of Order Management with Transportation and
with Trade Management.

Order Management and Fulfillment Implementation 2 - 18

 Business Flow: New Order With Trade Compliance Screening and
Transportation Planning
Create Order,
Credit Check,
Order Manual Price Promise Order
Adjustment

Shipment Pick Release Ship Confirm

Cash Invoice

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Global Screen for
Trade Trade
Compliance
Management

Transportation
Management Plan Transportation

Copyright © 2018, Oracle and/or its affiliates. All rights reserved.

This flow chart depicts the steps of an order-to-cash business flow for a new order with a trade
compliance screening. You must set up trade compliance to enable this screening.
In this scenario, a user creates an order as indicated in the Business Flow: New Order slide. After
the user submits the order, the order is screened to ensure that it complies with all trade regulations.
If the order passes the screening, then it proceeds to the fulfillment process.

Oracle SCM Cloud: Order Management and Fulfillment Implementation 2 - 19

 Business Flows

• New order
• New order with trade compliance screening
• Return order
• Change order (order revision)
• Order with a bill-only process

Oracle Internal & Oracle Academy Use Only

Copyright © 2018, Oracle and/or its affiliates. All rights reserved.

This overview lesson examines the following order variations:

• Creating a new order: What does the flow look like?
• New order with trade compliance screening: What is the flow of a new order that is
subjected to screening to verify it complies with trade regulations?
• Returning an order: What are the requirements for a return order? How do I create a return
order?
• Revising an order: This is covered in its own lesson because of the controls and constraints
that you can define to control the different types of changes you can make to an existing
order that is in progress. Only the flow will be reviewed for now.
• Order with bill-only process: Flow that is used when you place an order for something
nonshippable, such as a Cloud subscription.

Oracle SCM Cloud: Order Management and Fulfillment Implementation 2 - 20

 Business Flow: Return Order

Locate Original Choose Items to Create Return

Order Order Return
Enter Details
Order

Confirm
Receive Item Receipt

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Cash Credit Customer

Copyright © 2018, Oracle and/or its affiliates. All rights reserved.

This flow chart depicts the steps of an order-to-cash business flow for a return order.
A return isn’t technically a type of order. You can add a return line to an order that has items that are
being bought.
To return an item, the fulfillment line corresponding to the item on the original order must be closed.
Search for the closed order, and select the order line that has the item that must be returned. Enter
the required details, such as the quantity that is being returned, and reason for return. Then, finish
creating an order with the item that is being returned.
You can return just the coverage on a covered item, or you can return both the covered item and its
coverage. If you return a covered item that has an associated coverage, then the coverage is
returned automatically. You can apply a manual price adjustment to return lines.
Ensure that the item has been returned before you issue a credit. The confirm receipt is an optional
step that isn’t required before credit is issued to the customer.

Oracle SCM Cloud: Order Management and Fulfillment Implementation 2 - 21

 Business Flows

• New order
• New order with trade compliance screening
• Return order
• Change order (order revision)
• Order with a bill-only process

Oracle Internal & Oracle Academy Use Only

Copyright © 2018, Oracle and/or its affiliates. All rights reserved.

This overview lesson examines the following order variations:

• Creating a new order: What does the flow look like?
• New order with trade compliance screening: What is the flow of a new order that is
subjected to screening to verify it complies with trade regulations?
• Returning an order: What are the requirements for a return order? How do I create a return
order?
• Revising an order: This is covered in its own lesson because of the controls and constraints
that you can define to control the different types of changes you can make to an existing
order that is in progress. Only the flow will be reviewed for now.
• Order with bill-only process: Flow that is used when you place an order for something
nonshippable, such as a Cloud subscription.

Oracle SCM Cloud: Order Management and Fulfillment Implementation 2 - 22

 Business Flow: Change Order

Locate Create Make Submit

Original Order Revision Changes Change Order
Order
Price

Shipment Pick Release Ship Confirm

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Cash Invoice/Bill

Copyright © 2018, Oracle and/or its affiliates. All rights reserved.

This flow chart depicts a change order for a submitted order. The action may be known as revising
an order or creating an order revision.
Locate the original order and create a revision of the order, so that you can edit the order. Depending
on the rules setup for revisions, you can make changes to the order even after you create the
revision. You can make changes such as cancelling existing lines, adding new order lines, and
editing configurations.
The rules determine whether changes can be made. For example, if a customer orders an item with
a quantity of 10, and 7 of the 10 already were shipped, then you can’t make changes to the line with
the shipped quantity of 7. You can cancel only the line with the backordered quantity of 3.
After you make changes to the order, you submit it. The rest of the flow is similar to the new order
flow.

Oracle SCM Cloud: Order Management and Fulfillment Implementation 2 - 23

 Business Flows

• New order
• New order with trade compliance screening
• Return order
• Change order (order revision)
• Order with a bill-only process

Oracle Internal & Oracle Academy Use Only

Copyright © 2018, Oracle and/or its affiliates. All rights reserved.

This overview lesson examines the following order variations:

• Creating a new order: What does the flow look like?
• New order with trade compliance screening: What is the flow of a new order that is
subjected to screening to verify it complies with trade regulations?
• Returning an order: What are the requirements for a return order? How do I create a return
order?
• Revising an order: This is covered in its own lesson because of the controls and constraints
that you can define to control the different types of changes you can make to an existing
order that is in progress. Only the flow will be reviewed for now.
• Order with bill-only process: Flow that is used when you place an order for something
nonshippable, such as a Cloud subscription.

Oracle SCM Cloud: Order Management and Fulfillment Implementation 2 - 24

 Ordering an Item With a Bill-Only Process

Header
Add Item Validate & Book
Order (customer, BU..)

Price

Cash
Invoice

Oracle Internal & Oracle Academy Use Only

Copyright © 2018, Oracle and/or its affiliates. All rights reserved.

This flow chart depicts the flow that is used when you place an order for something nonshippable,
such as a Cloud subscription. You can add a coverage item, such as a service level agreement.
Recurring charges have periodicity but aren’t necessarily bill-only. The item you are adding has
monthly recurring periodicity. Any item with recurring charges requires additional inputs during the
order creation process, such as start date and end date.
After you submit the order, the bill-only process is initiated and you can generate an invoice.

Oracle SCM Cloud: Order Management and Fulfillment Implementation 2 - 25

 Topics

• Order to Cash
• Order Management Integrations
• Business Flows
– New Order
– New Order with Trade Compliance Screening
– Return Order
– Change Order
– Order with a bill-only process
• Order Creation with Different Types of Items

Oracle Internal & Oracle Academy Use Only

– Standard Item
– Configured Item
– Coverage Item
– Subscription Item

Copyright © 2018, Oracle and/or its affiliates. All rights reserved.

You can create orders with different type of items. When you order any of these items, you can
use a one-time or recurring charge.

Oracle SCM Cloud: Order Management and Fulfillment Implementation 2 - 26

 Order Creation with Different Types of Items

– Standard Item
– Configured Item
– Coverage Item
– Subscription Item

Oracle Internal & Oracle Academy Use Only

Copyright © 2018, Oracle and/or its affiliates. All rights reserved.

You can create orders with different type of items. When you order any of these items, you can
use a one-time or recurring charge.

Oracle SCM Cloud: Order Management and Fulfillment Implementation 2 - 27

 Order Creation: Standard Item

A standard item
• Is an item that isn’t configurable
• Can be a coverage item
• Can be a covered item
• Can have a one-time charge or recurring charge
• May or may not be shippable
• Can have one-time or recurring billing

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Copyright © 2018, Oracle and/or its affiliates. All rights reserved.

A standard item may or may not be something shippable.

• Shippable. Examples:
- Hardcover book
- Specialty coffee
- Gift card delivered by regular mail
• Nonshippable. Examples:
- Book in electronic format
- Gift card that is delivered by email
You can bill a standard item in two ways:
• One-time billing. Examples:
- Hardcover book
- Book in electronic format.
• Recurring billing. Most common with subscriptions, which will be discussed later in this
lesson. Examples:
- Cellular phone service
- Specialty coffee delivered monthly
A standard item can have coverage, such as warranty or service plan.
A standard item can be a covered item, which means that it is defined in Product Model as an
item that can have a coverage item. For example, a covered item, such as a laptop, could
have a coverage item, such as a warranty. You can order a covered item and then add a
coverage item to it later in a different order.

Oracle SCM Cloud: Order Management and Fulfillment Implementation 2 - 28

 Order Creation with Different Types of Items

– Standard Item
– Configured Item
– Coverage Item
– Subscription Item

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Copyright © 2018, Oracle and/or its affiliates. All rights reserved.

You can create orders with different type of items.

Oracle SCM Cloud: Order Management and Fulfillment Implementation 2 - 29

 Order Creation: Configured Item

A configured item
• An item defined in the Product Information Management work area that has been
ordered with certain specific characteristics. Configure-to-order and assemble-to-order
items are examples.
• Can be a covered item
• May or may not be shippable
• Can have a one-time charge or recurring charge
• Can have one-time or recurring billing

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Copyright © 2018, Oracle and/or its affiliates. All rights reserved.

A configured item may or may not be something shippable.

• Shippable. Examples:
- Laptop computer configured according to customer specifications
- Hardcover book in optional gift wrap
• Nonshippable. Examples:
- Airline ticket, hotel, and rental car package booked online
- Membership with different levels
You can bill a configured item in two ways:
• One-time billing. Examples:
- Laptop computer configured according to customer specifications
- Hardcover book in optional gift wrap
• Recurring billing. Most common with subscriptions, which will be discussed later in this
lesson. Examples:
- Cellular phone service with different levels of service
- Membership with different levels
A configured item can be a covered item, which means that it is defined in the Product
Information Management work area as an item that can have a coverage item. For example, a
covered item, such as a customer-configured laptop, could have a coverage item, such as a
warranty.

Oracle SCM Cloud: Order Management and Fulfillment Implementation 2 - 30

 Order Creation with Different Types of Items

– Standard Item
– Configured Item
– Coverage Item
– Subscription Item

Oracle Internal & Oracle Academy Use Only

Copyright © 2018, Oracle and/or its affiliates. All rights reserved.

You can create orders with different type of items. When you order any of these items, you can
use a one-time or recurring charge.

Oracle SCM Cloud: Order Management and Fulfillment Implementation 2 - 31

 Order Creation: Coverage Item

A coverage item
• Is an item defined in the Product Information Management work area to provide
coverage to an item defined as a covered item
• Can be a standard item only
• Has a service duration and period
• Is a service that isn’t shippable
• Can have a one-time charge or recurring charge
• Can have one-time or recurring billing

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• Must be mapped to one of the following sales product types:
– Extended warranty
– Software maintenance
– Service level agreement
– Preventive maintenance
Copyright © 2018, Oracle and/or its affiliates. All rights reserved.

Examples of coverage items:

Warranty on a laptop
Service agreement

Oracle SCM Cloud: Order Management and Fulfillment Implementation 2 - 32

 Order Creation with Different Types of Items

– Standard Item
– Configured Item
– Coverage Item
– Subscription Item

Oracle Internal & Oracle Academy Use Only

Copyright © 2018, Oracle and/or its affiliates. All rights reserved.

You can create orders with different type of items. When you order any of these items, you can
use a one-time or recurring charge.

Oracle SCM Cloud: Order Management and Fulfillment Implementation 2 - 33

 Order Creation: Subscription Item

A subscription
• Is an item defined as a subscription in the Product Information Management work area
• Has a service duration and period
• Can be standard or configured
• May or may not be shippable
• Can have a one-time charge or recurring charge
• Can have one-time or recurring billing

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• May be ordered as standalone or as covered, and you can associate a coverage with it

Copyright © 2018, Oracle and/or its affiliates. All rights reserved.

A subscription item is qualified with a sales product type of Subscription in the Product
Information Management work area.
A subscription (item) may or may not be something shippable.
• Shippable. Example:
- Worldwide Economics and Trade Magazine (1 year)
• Nonshippable. Example:
- Software subscription: Software as a Service (SaaS)
You can bill a subscription in two ways:
• One-time billing. Examples:
- One-time payment for 1-year magazine subscription
• Recurring billing. Examples:
- Cellular phone service
- Access to a movie streaming site

Oracle SCM Cloud: Order Management and Fulfillment Implementation 2 - 34

 Demonstration: 2-1

Creating and Processing a New Order of a Standard Item With Coverage

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Copyright © 2018, Oracle and/or its affiliates. All rights reserved.

This demonstration shows how to create and process a new order of a standard item with
coverage.

Oracle SCM Cloud: Order Management and Fulfillment Implementation 2 - 35

 Demonstration: 2-2

Creating and Processing a Return Order

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Copyright © 2018, Oracle and/or its affiliates. All rights reserved.

This demonstration shows how to create and process a return order.

Oracle SCM Cloud: Order Management and Fulfillment Implementation 2 - 36

 Practices: Overview

• 2-1: Creating and Submitting a Sales Order for a Standard Product With Coverage
• 2-2: Viewing Fulfillment Lines and Orchestration Plan

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Copyright © 2018, Oracle and/or its affiliates. All rights reserved.

In practice 2-1, you create and submit a sales order for a standard product with coverage.
In practice 2-2, you view the fulfillment lines and the orchestration plan for their fulfillment.

Oracle SCM Cloud: Order Management and Fulfillment Implementation 2 - 37

Summary

In this lesson, you should have learned how to:

• Explain the key features of Order Management Cloud
• Identify the interactions between Order Management, Pricing, Configurator, Shipping,
Global Order Promising, and Receivables
• Differentiate between a draft order and an order revision
• Create and submit a new order using the Order Management Cloud user interface
• Create a return order
• Create an order with subscription and coverage

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• Track an order during various stages of fulfillment
using the Order Management work area

Copyright © 2018, Oracle and/or its affiliates. All rights reserved.

Oracle SCM Cloud: Order Management and Fulfillment Implementation 2 - 38

 3
Pricing Strategies

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Part 2: Pricing
Order Management and Fulfillment Cloud
Implementation

Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

 Order-to-Cash Flow
Pricing Strategies

Optimize Orchestrate
Sourcing & Fulfillment
Manage, View Schedule Pick & Ship
& Enrich
Order

Oracle Internal & Oracle Academy Use Only

Order Global Order
Inventory Finance
Create, Management Promising
Bill & Collect
Configure &
Price Order

Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

This diagram presents the overall order-to-cash flow. An order is created or captured in
Oracle Order Management Cloud. The order is priced using Oracle Fusion Pricing. Products
can be configured using Oracle Fusion Configurator. The order is enriched to include useful
fulfillment information. 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 in the case of models and kits. Order Management Cloud
orchestrates order fulfillment, which includes but isn’t limited to reserving material, sending
requests to ship material, sending requests to generate invoices, and billing customers.
Oracle Fusion Shipping ships the product to the customer. Oracle Financials Cloud sends the
invoices to the customer.
You can use Order Management Cloud to fulfill standard products, services, configurations,
models, and kits. You can also use various fulfillment methods, such as drop shipment, back-
to-back, and internal transfers.
This diagram focuses on order creation and submission.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 3 - 2

Objectives

After completing this lesson, you should be able to:

• Price an order
• Describe what a pricing strategy is
• Explain customer pricing profiles
• Describe the purpose of a pricing segment
• Explain pricing strategy assignment

Oracle Internal & Oracle Academy Use Only

• Derive a pricing strategy for a customer
• Explain the concepts of matrixes and how they are used

Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 3 - 3

Topics

• Pricing in Order Management

• Pricing Strategies
• Setups: Matrixes

Oracle Internal & Oracle Academy Use Only

Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 3 - 4

 Topics

• Pricing in Order Management

• Pricing Strategies
• Setups: Matrixes

Oracle Internal & Oracle Academy Use Only

Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

This section provides an overview of how Oracle Fusion Pricing works to price orders in
Order Management.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 3 - 5

 Pricing Solution

Pricing Strategies

Customers

Pricing
Pricing and Shipping Rules
Setup

Prices Discounts Costs Shipping Guidelines

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Execution
Process

Price Execution Process

Order Priced Order

Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

This diagram depicts the pricing setup required to enable pricing execution.
Using Oracle Fusion Pricing, you can create your own price execution processes so that they
map to their pricing methodologies. Pricing provides flexible price management capabilities
that you can use to create targeted pricing rules and processes to support your corporate
pricing practices. The price administration functionality lets you to design pricing rules for your
products and services to meet the business objectives for your customers. First, pricing
administrators need to evaluate their customer base and then group customers with similar
buying behaviors or practices into pricing segments. Pricing administrators must then
evaluate the price points and pricing rules needed to meet the business and revenue goals
set forth for the segment.
Some examples of these rules are defined in price lists, discount lists, cost lists, and shipping
charge lists. These pricing rules are grouped together in a strategy to create specific pricing
behavior for an order. The pricing strategy is a container for the various types of pricing rules
that are used during price execution and defines the approach for achieving a specific goal
around selling products. Pricing enables you to effectively implement your pricing strategies
so that they meet your business and revenue objectives. For example, you can use a pricing
strategy that uses higher discounts when you sell to new customers through a direct sales

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 3 - 6

Pricing Solution (continued)
channel. Your customer may belong in the New Customers Pricing Segment and through the
New Customers Pricing Strategy, you may leverage higher discounts for their products.

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Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 3 - 7

 Business Use Case

You are a pricing administrator at OTC Corporation. Your team is

responsible for your pricing implementation and activities of
establishing your pricing segments and strategies, defining prices,
managing discounts, and defining shipping charges for your
products.
As part of the company’s annual pricing review, you will focus on
reviewing the areas that impact pricing for the customer

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Computer Service and Rentals.
• Pricing Segments and Strategies
• Price Lists
• Discount Lists
• Shipping Charge Lists
• Guidelines

Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

Now let’s look at a business use case. We will leverage this use case throughout the next few
pricing lessons.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 3 - 8

 Pricing Strategies: Overview

• Configurable process to
derive the pricing strategy Customer Profile

by using:
– Customer pricing profile
– Pricing segment Pricing
Segments
– Pricing strategy
assignment Revenue High Value Low Cost to

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Potential Accounts Serve
• Pricing strategy is the
container for the pricing
rules.
– Price lists, discount lists, Pricing
shipping charge lists, cost Strategies
lists, currency conversion
lists, guidelines, and more Pricing Rules

Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

This diagram shows that pricing segment is created from a customer profile. Then the pricing
strategy is derived from the pricing segment.

These days, companies are pushing corporate pricing strategies to the front line as part of the
planning and setting of prices. Through targeted pricing segments and strategies, businesses
can focus on setting the correct price for the customer to meet their business objectives. Now,
let’s look at how we determine the correct pricing for a customer for an order.
First, we start by looking at the customer pricing profile. This is the set of pricing-related
attributes of a customer that describes the customer’s buying behavior. We evaluate the
attributes that determine the pricing segment a customer falls in. A pricing segment is a
grouping of customers with like buying behavior. It can help you better categorize and
understand how customers in a pricing segment will respond to a common pricing strategy.
Now, once we know the pricing segment, then we derive the pricing strategy. The pricing
strategy is a container of the various types of pricing rules that are used during price
execution. It defines the approach for achieving a specific goal around selling or pricing
products. These various types of pricing rules include price lists, discount lists, shipping
charge lists, cost lists, currency conversion lists, and guidelines. End users can configure the
rules to determine the pricing segment and pricing strategy.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 3 - 9

 Demonstration: 3-1

Pricing an Order

Oracle Internal & Oracle Academy Use Only

Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

This demonstration shows how to price an order in Oracle Fusion Order Management. We will
start by looking at the current pricing for the customer Computer Service and Rentals.
In this demonstration, you will view the pricing segment and strategy details for the order,
price a line, and view the charge and its charge components in the price breakdown. You will
also see the tax amount, but not a breakdown of the tax detail. Order Management captures
the tax detail and exposes it along with the other order information through database views
that can be accessed and consumed by the other applications. Tax detail is not part of the
fulfillment request that is sent to downstream systems.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 3 - 10

 Topics

• Pricing in Order Management

• Pricing Strategies
• Setups: Matrixes

Oracle Internal & Oracle Academy Use Only

Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

This section discusses pricing strategies. Note the following definitions:

• Pricing strategy: Grouping of pricing rules that together define the approach for
achieving a specific goal around selling and pricing products. A pricing strategy
identifies a specific pricing objective (such as penetrate market, maintain position, phase
out a product) and the collection of prices and pricing policies to be applied to
accomplish the objective.
• Customer pricing profile: Set of pricing-related attributes that describe a customer’s
buying behavior. You evaluate these attributes and specify them for a pricing segment.
• Pricing segment: Grouping of customers with similar buying behavior. You can apply
specific pricing strategies to these targeted groups of customers.
• Pricing strategy assignment: Assignment of a pricing segment to a pricing strategy.
End users can configure the rules to determine the pricing segment and pricing strategy.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 3 - 11

 Pricing Strategies: Customer Pricing Profiles

• A set of pricing-related attributes that describes a customer’s

buying behavior
• Date-effective because the profile of a customer can change
over time

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Computer Service and
Rentals

Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

A customer profile maps a customer to a set of attributes that describes the customer’s buying
behavior. Customers who have similar customer pricing profiles can be grouped together in a
pricing segment. You can manage the values for the customer pricing profiles. Because a
customer profile may change over time, profiles are effective in a date range. You can create
multiple profiles for the same customer that are effective over different time periods.
This screenshot depicts the customer pricing profile for the customer Computer Service and
Rentals, effective from August 1, 2015 onward. The values for this customer on the customer
pricing profile are:
• Customer value: Very high
• Revenue potential: Very high
• Cost-to-serve: Low
• Customer rating: Very high
• Customer size: Large
Navigation
1. From the Navigator, select Pricing Administration.
2. On the Overview page, click the Tasks panel tab, and then select Manage Customer
Pricing Profiles.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 3 - 12

 Pricing Strategies: Pricing Segments

• Is a grouping of customers who exhibit a common set of

characteristics and similar buying behaviors
• Identifies targeted groups of customers in order to apply
specific pricing strategies
• Leverages extensibility of matrix

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Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

As part of your planning, you need to review the attributes used for segmenting your
customers for pricing. You must determine how many pricing segments to have. Pricing uses
the attribute values from the customer pricing profile to determine the pricing segment for a
customer. Customers that exhibit a common or similar set of buying characteristics are
grouped together in a pricing segment.
Pricing uses the unique concept of matrixes where you can define condition and results
columns. This screenshot depicts pricing segments. Attribute values represent the conditions,
and pricing segment and precedence values represent the results. By using the matrix, you
can extend the criteria for deriving the pricing segment.
Example: Customers, such as Computer Service and Rentals, that have very high revenue
potential, large customer size, low cost to serve, very high customer value, and a very high
customer rating fall in the Corporate Strategy Group 1 pricing segment. Customers may fall in
the Corporate Strategy Group 2 pricing segment with medium revenue potential, large
customer size, medium cost to serve, medium customer value, and a medium customer
rating.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 3 - 13

The last row in this example indicates that a customer will fall into the Corporate Strategy
Group 1 if none of the condition values match. This is called the default pricing segment. The
pricing engine matches all the rules that qualify and uses the precedence value to determine
the rule with the higher precedence (lower precedence number).
Navigation
1. From the Navigator, select Pricing Administration.
2. On the Overview page, select Tasks, and then select Manage Pricing Segments.

Oracle Internal & Oracle Academy Use Only

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 3 - 14

 Pricing Strategies: Pricing Strategy Assignments

• Is the assignment of pricing segment to pricing strategy

• Provides a mechanism to employ different pricing strategies
for the same pricing segment in different selling scenarios
• Uses extensibility of the matrix

Oracle Internal & Oracle Academy Use Only

Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

Example: Now we know that the customer Computer Service and Rentals belongs in the
Corporate Strategy Group 1 Pricing Segment. We can see that the Corporate Pricing Strategy
will be applied. By using the matrix, you can extend the criteria for deriving the pricing strategy
and add more conditions (condition columns). In the example in the screenshot, Channel
Method and Transaction Type are attributes that may affect the pricing strategy. If the channel
on the transaction was Direct and the customer was Computer Service and Rentals, then the
pricing strategy will be the Maximize Revenue Corp Strategy.
Note that pricing strategies are at the header level in Order Management.
Navigation
1. From the Navigator, select Pricing Administration.
2. On the Overview page, click the Tasks panel tab, and then select Manage Pricing
Strategy Assignments.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 3 - 15

 Pricing Strategies
• Defines the approach for achieving a specific goal around selling
and pricing products
– Contains the group of pricing rules such as price lists, cost lists,
discount lists, shipping charge lists, and currency conversion list
— Support date effective
– Multiple rules determined by precedence
– Set business objectives and the default currency

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Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

A pricing strategy represents the approach for achieving a specific goal around the pricing
and selling of products. It’s the common container for all the pricing and shipping rules that
are evaluated for a transaction.
Pricing categorizes the rules that are associated with a pricing strategy into pricing rules and
shipping rules. You can associate these pricing rules with a pricing strategy.

This screenshot depicts the Corporate Pricing Strategy page.

• Price lists: Associated segment price lists, ceiling price lists, floor price lists, and GSA
price lists.
• Discount lists: Capture simple, tiered, or attribute-based discounts. Typically calculated
between list and net price.
• Cost lists: Capture costs used for cost-plus pricing or costs for margin calculation.
• Currency conversion lists: Manage the conversion rates between currencies.
• Shipping charge lists: Capture shipping charges based on the shipping method.
• Guidelines: Enforce your organization’s pricing policies during ordering.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 3 - 16

You can prioritize pricing rules. The pricing rules are picked and determined based on
precedence. A record with a lower number indicates a higher precedence.
Pricing also provides shipping rules, which are associated to pricing strategy using shipping
charge lists. Shipping charge lists obtain the shipping charges.
The default currency is specified for the pricing strategy and is the default currency for the
transaction.
Navigation
1. From the Navigator, select Pricing Administration.
2. On the Overview page, click the Tasks panel tab, and then select Manage Pricing
Strategies.
3. Search for a strategy and then click the Edit icon.

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Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 3 - 17

 Demonstration: 3-2

Reviewing Matrixes for Pricing Segments and Strategy

Assignments

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Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

Instructor Note: Instructor should demonstrate practice 3-1.

Demonstration 3-2 presents an overview of matrix classes and pricing matrix types for the
matrixes that determine a pricing segment and pricing strategy for the predefined processes.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 3 - 18

 Price Execution: Derive Pricing Strategy
Execution
Process

Order Priced Order

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Customer Pricing Pricing Pricing
Pricing Profile Segments Strategy Strategy
Assignments

Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

This diagram depicts how the pricing strategy was derived for Computer Service and
Rentals in the price execution process.
High-level steps:
1. Evaluate the customer pricing profile. Pricing uses the values that are associated with
the customer pricing profile to determine the pricing segment for the pricing date.
2. Determine the pricing segment based on the values from the customer pricing profile.
This is the pricing segment that is returned on the order.
3. Determine the pricing strategy that must apply to the order based on the rules in the
pricing strategy assignment.
4. After the pricing strategy is derived, the pricing engine applies the pricing rules for the
strategy to the order, returns the Pricing Strategy details, and returns the default
currency for the transaction.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 3 - 19

 Topics

• Pricing in Order Management

• Pricing Strategies
• Setups: Matrixes

Oracle Internal & Oracle Academy Use Only

Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

This section discusses how to set up matrixes.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 3 - 20

 Matrixes: Overview

Define a set of dynamic

conditions and results in a
tabular format Matrix Classes
Consists of 3 components
• Matrix Classes
• Matrix Types

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• Matrix Rules

Matrix Rules Matrix Types

Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

This diagram depicts the relationship of matrix classes to matrix rules and matrix types.
Use pricing matrixes to define a set of conditions and results in a tabular format, similar to a
spreadsheet. Matrixes are prevalent throughout Oracle Fusion Pricing. Use matrixes to
determine pricing segments, derive pricing strategies, and support attribute-based pricing
adjustments on price lists and discounts lists. Matrixes consist of the following key
components: matrix classes, matrix types, and matrix rules.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 3 - 21

 Matrixes: Overview

• Matrix class is an easy-to-use intuitive framework, that a

pricing administrator uses to define a multidimensional matrix
to evaluate certain results based on a set of conditions.
• The conditions, results, and a comparison operator are
defined as columns in a spreadsheet-like UI within Pricing
Administration.
• Matrixes are composed of the following components:

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– Matrix class: Associated with a pricing entity type, such as
Pricing Segment and Strategy Assignment
– Matrix type: Used to map matrix class and pricing entities
– Matrix rule: Leverage the matrix class definitions in pricing
entities

Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

Many pricing administrators are comfortable working in an environment similar to a spreadsheet, so the
Matrix Classes UI is designed using a simple tabular format. Because each matrix class can have one
or more condition and result dimensions, matrixes are a flexible way of creating multidimensional rules.
This lesson shows how to define matrix classes and shows how they are used by Oracle Fusion Order
Management.
Matrixes are composed of three major constructs:
• Matrix class: Template that defines matrix structure, that is the conditions, comparison attribute,
and results.
• Matrix type: Matrix classes are mapped to a matrix type. The mapping ensures that the correct
matrix class is leveraged by the applicable entities in the Pricing Administration UI, as well as
during price execution. For example, consider the seeded matrix class Pricing Term Adjustment.
It’s mapped to the Discount Adjustment (QP_DISCOUNT_ADJ) matrix type. Based on this
assignment, the Pricing Term Adjustment matrix is visible in the Manage Discount Lists page and
can be used to create matrix rules related to discount adjustments.
• Matrix rule: Specific definition of a matrix class for a given entity. For example, you can use a
matrix rule to apply a $2 discount on all items if a customer is located in a specific zip code. In
this case, the Pricing Term Adjustment matrix uses “zip code” as a condition column, and
“adjustment type” and “adjustment amount” as result columns. In the matrix rule, you define a rule
so that for the zip code 94065, a $2 discount is applied.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 3 - 22

 Matrix Classes
• Contains the details of the matrix structure
• Manage the condition and result columns

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Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

You can create a matrix class, or modify a seeded matrix class. A matrix class contains the
conditional attributes that Pricing evaluates and the results attributes that Pricing returns if the
conditions are met. You manage matrix classes through the Manage Matrix Classes UI in the
Pricing Administration work area.
Within this UI, you define the conditions and results records, comparison operators, and the
Compare To attribute. Pricing captures some additional attributes, such as whether the
column is required for the matrix (Required flag), or whether the column value can be null for
a given rule. You must also specify the domain, which is a set of possible values, for each
column.
In this screenshot, the attributes of Revenue Potential, Customer Size, Cost to Service,
Customer Value, and Customer Ranking are possible condition columns that you can use in
the Pricing Segment matrix class. Pricing captures the Pricing Strategy and Precedence
attributes as the result columns.
Navigation
1. From the Navigator, select Pricing Administration.
2. On the Overview page, click the Tasks panel tab, and then select Manage Matrix
Classes.
3. Click a hyperlinked name.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 3 - 23

 Matrix Types

Maps matrix classes to matrix types

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Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

Matrix classes are mapped to a matrix type. This mapping ensures that the correct matrix
class is leveraged by the applicable entities in the Pricing Administration UI, as well as during
price execution. On the Manage Matrix Types UI. you can assign one matrix class to a matrix
type. For example, the screenshot shows a seeded matrix class named Pricing Segment. It’s
mapped to the Pricing Segment Matrix Type. Based on this assignment, the appropriate
condition and result columns from the Price List Charge Adjustment matrix class are visible in
the Price List UI and can be used to create matrix rules related to attribute-based
adjustments.
Navigation
1. From the Navigator, click Setup and Maintenance.
2. In the Setup and Maintenance work area, select the Order Management offering.
3. Search for the Manage Pricing Matrix Types task. Select the task in the Pricing functional
area.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 3 - 24

 Matrix Rules

• Create multi-dimensional rules based on conditions and

results

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Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

Through the matrix rules UI, you can create multidimensional qualification-based rules. These
rules are based on the conditional and results columns defined in the pricing matrix classes
UI. Examples of the different implementation of matrix include attribute-based adjustments on
price list or discount list, or the derivation of pricing segments and strategies. These rules are
displayed in a simple tabular format, similar to a spreadsheet. Within this UI, you can also edit
the available columns of the rules table.
The first screenshot depicts the details of the rules for deriving the pricing segment in the
Manage Pricing Segments page, and the second screenshot depicts the details of the rules
for deriving a pricing strategy in the Manage Pricing Strategy Assignments page.
Navigation to Manage Pricing Segments Page:
1. From the Navigator, select Pricing Administration.
2. On the Overview page, click the Tasks panel tab, and then select Manage Pricing
Segments.
Navigation to Pricing Strategy Assignments Page:
1. From the Navigator, select Pricing Administration.
2. On the Overview page, click the Tasks panel tab, and select Manage Pricing Strategy
Assignments.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 3 - 25

 Practice 3-1: Reviewing Pricing Segment and Strategy

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Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

In this practice, you review a pricing segment and strategy.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 3 - 26

 Summary

In this lesson, you should have learned how to:

• Price an order
• Describe what a pricing strategy is
• Explain customer pricing profiles
• Describe the purpose of a pricing segment
• Explain pricing strategy assignment

Oracle Internal & Oracle Academy Use Only

• Derive a pricing strategy for a customer
• Explain the concepts of matrixes and how they are used

Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 3 - 27

Oracle Internal & Oracle Academy Use Only
 4
Price Lists

Oracle Internal & Oracle Academy Use Only

Part 2: Pricing
Order Management and Fulfillment Cloud
Implementation

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

 Order-to-Cash Flow
Price Lists

Optimize Orchestrate
Sourcing & Fulfillment
Manage, View Schedule Pick & Ship
& Enrich
Order

Oracle Internal & Oracle Academy Use Only

Order Global Order
Inventory Finance
Create, Management Promising
Bill & Collect
Configure &
Price Order

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

This diagram presents the overall order-to-cash flow. An order is created or captured in
Oracle Order Management Cloud. The order is priced using Oracle Fusion Pricing. Products
can be configured using Oracle Fusion Configurator. The order is enriched to include useful
fulfillment information. 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 in the case of models and kits. Order Management Cloud
orchestrates order fulfillment, which includes but isn’t limited to reserving material, sending
requests to ship material, sending requests to generate invoices, and billing customers.
Oracle Fusion Shipping ships the product to the customer. Oracle Financials Cloud sends the
invoices to the customer.
You can use Order Management Cloud to fulfill standard products, services, configurations,
models, and kits. You can also use various fulfillment methods, such as drop shipment, back-
to-back, and internal transfers.
This diagram focuses on order creation and submission.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 4 - 2

Objectives

After completing this lesson, you should be able to:

• Define and modify pricing rules on a price list for
– Standard items
– Configurable items (models)
– Coverage items
– Subscription items

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• Describe pricing charges and how adjustments on a price list
can affect the list price

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 4 - 3

 Topics

• Price Lists
• Charges
• Adjustments
• Pricing of Standard Items
• Pricing of Configurable Items (Models)
• Pricing of Coverage Items

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• Pricing of Subscription Items

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

This slide lists the topics that will be discussed during this lesson.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 4 - 4

 Topics

• Price Lists
• Charges
• Adjustments
• Pricing of Standard Items
• Pricing of Configurable Items (Models)
• Pricing of Coverage Items

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• Pricing of Subscription Items

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

This section explains what price lists are and how they function in the pricing process.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 4 - 5

Price List Use Case

OTC Corporation manages the list prices for its items on the
Corporate Price List. Some items have one-time charges, while
others have one-time and recurring charges.

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Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 4 - 6

 Price Lists

• Price lists are:

– A defined collection of prices for items or services targeted for a
set of customers for a specific period of time
– A means of capturing base list prices and other types of
adjustments to arrive at the list price
– Assigned to a pricing strategy
• You can:

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– Use multiple types of price lists
– Import and export price lists
– Define pricing charges (price type, charge type, charge
subtype)
— One-time
— Recurring

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

If you are a pricing administrator, then you can manage your prices for items and services
using a price list.
The base list price is an initial value assigned to an item. You can define rules to capture base
list prices. You can offer a different price to a customer based on volume or other attributes.
You can also define tier-based or attribute-based adjustments to arrive at the list price. At
runtime, the pricing engine derives the list price from the base list price, plus an adjustment.
A price list can contain multiple types of item prices on a price list. These prices are known as
pricing charges, which are defined by a combination of price type, charge type, and charge
subtype.
Price lists support one-time and recurring charges, for example:
• Sale price for cellular phone: 445 U.S. Dollars (USD).
• Recurring charges of 15 USD are incurred by the user monthly.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 4 - 7

 Price Lists: Types

You can create several types of price lists. You can define
charges for:
• Segment: Contains the pricing for a given segment. You
typically capture your list prices here.
• GSA: Used for U.S. General Services Administration (GSA)
customers.

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• Ceiling: Captures the highest prices for your items in the
ceiling price list and uses them as a reference.
• Floor: Captures the floor (lowest) prices for items.

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

You can assign one or more price lists to one or more strategies. You can view the pricing
strategies that are associated with the specific price list in the References tab within the Price
List user interface.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 4 - 8

 Demonstration: 4-1

Reviewing Price Lists

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Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

In this demonstration, you review the price list and the charges for the standard item. You also
review the pricing setups for pricing charge definitions.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 4 - 9

 Demonstration: 4-2

Reviewing Price Lists for Coverages

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Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

In this demonstration, you review the price list for a coverage item.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 4 - 10

 Demonstration: 4-3

Reviewing Price Lists for Subscriptions

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Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

In this demonstration, you review the price list for a subscription item.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 4 - 11

 Topics

• Price Lists
• Charges
• Adjustments
• Pricing of Standard Items
• Pricing of Configurable Items (Models)
• Pricing of Coverage Items

Oracle Internal & Oracle Academy Use Only

• Pricing of Subscription Items

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

This section explains what charges are and how they function in the pricing process.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 4 - 12

 Charges

• Charges are based on a calculation method of price, cost, or

covered item price percentage
• You can define charges for:
– Standard items and services
– Configured items
– Coverage items

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– Subscription items
• Define multiple charges for an item with date effectivity
• Support adjustments for each charge
– Tiered-based
– Attribute-based
– Manual

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

You can define charges to calculate the base list price for items and services. These charges
are based on the following calculation methods:
• Price: Fixed amount
• Cost: Cost-plus pricing, which is used to derive the base price, can be a markup or
markdown (discount) of the cost. You define costs on cost lists in Pricing. If you need to
retrieve real-time costs for cost-plus pricing, then you can extend your pricing processes
(algorithms) to call a service such as Oracle Fusion Costing.
• Covered item price percentage: Price and covered item price percentage.
Examples of Calculations
Price: The price defined for a cellular phone is 445 USD (when based on the price calculation
method).
Cost: The price of a cellular phone based on cost:
- In the price list, the markup is 55 USD.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 4 - 13

(continued)
- In the cost list, the cost of the phone for the sale price charge definition is 390
USD.
- At runtime: Cost + Markup Amount=Base List Price, which is 445 USD (when
based on the cost-plus pricing calculation method).
Covered item price percentage: The warranty (a coverage item) is 15 percent of the price of
the phone, which is 445 USD. The price of the coverage is 66.75 USD, which is 15 percent of
445 USD.
If you want to capture additional pricing rules against the base list price, then you can define
adjustments for each pricing charge. Adjustments on the price list are tier-based or attribute-
based. You can also allow manual adjustments on top of charges during order creation. You
can’t use tier-based and attribute-based adjustments for coverage items.

Oracle Internal & Oracle Academy Use Only

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 4 - 14

 Topics

• Price Lists
• Charges
• Adjustments
• Pricing of Standard Items
• Pricing of Configurable Items (Models)
• Pricing of Coverage Items

Oracle Internal & Oracle Academy Use Only

• Pricing of Subscriptions

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

This section explains what adjustments are and how they function in the pricing
process.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 4 - 15

 Adjustments: Tier-Based

• Allows you to define

volume-based
adjustment
– Item quantity
– Extended amount
• Adjustment applied
after base list price
calculation

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• Support on line or on
document
• Multiple adjustment
types
– Discount amount
– Discount percent
– Markup amount
– Markup percent
– Price override

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

You have the flexibility to give volume pricing to your customers. You can define tier-based
adjustments based on the ordered item quantity or the extended amount.
You can define tier-based adjustments on top of the base list price (charge) of the item. These
adjustments can be evaluated for the order line or across the lines of an order.
Continuing the example from the previous slide: You offered the customer a base list price of
445 USD. If you define a tier-based adjustment based on item quantity, then the customer
gets a discount of:
• 50 USD per unit for quantity between 5 and 10
• 12% on the base price for quantity above 10
If the customer orders 6 cellular phones, then a 50 USD discount is subtracted from the base
list price of 445. The list price is 395 USD per unit.
If the customer orders 12 cellular phones, then a 53.4 USD discount is subtracted from the
base list price of 445. The list price is 391.6 USD per unit.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 4 - 16

 The screen shot depicts the following tiered pricing rules:
• 50 USD adjustment for a quantity up to 10
• 100 USD adjustment for quantities between 10 and 50
• 200 USD adjustment for quantity over 50
For amount-based tiers, you can specify what to aggregate on through the setup Tier Bases on
the Manage Pricing Bases pages. This is a setup task where you define exactly what price
element (price point) to aggregate and for which set of charges.
The screen shot on the slide depicts the following tiered pricing rules:
• 50 USD adjustment for a quantity up to 10
• 100 USD adjustment for quantities between 10 and 50
• 200 USD adjustment for quantity over 50

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Navigation
1. In the Navigator, select Pricing Administration.
2. On the Overview page, click the Tasks panel drawer and click Manage Price Lists.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 4 - 17

 Adjustments: Attribute-Based

• Set up pricing rules based on a set of conditions or attributes

• Set up attribute-based pricing adjustments using matrix rules
– You can define charges based on the customer, region, or
other attributes.
• Example: You can define adjustments for a specific customer.

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Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

Continuing the example from the previous slide:

The table depicts the following columns: Customer, Adjustment, Adjustment Type, Adjustment
Basis. The following companies appear under Customer: Vision and Manufact123.

• Cellular phone base price=445 USD

- The table shows that if the customer is Vision, then a 100 USD adjustment is
applied to the base list price. Therefore, the list price is 345 USD.
- The table shows that if the customer is Manufact123, then a 7.5% discount is
applied to the base list price. The list price is 411.62 USD.
For the price adjustment matrix, you can define the attributes as conditions, and you can
define the adjustment, adjustment type, and adjustment basis (for the percentage-based
adjustment) as results. The adjustment basis indicates where the percentage-based discount
is taken from.

Attribute-based adjustments are discussed in greater detail in lesson 5.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 4 - 18

 Topics

• Price Lists
• Charges
• Adjustments
• Pricing of Standard Items
• Pricing of Configurable Items (Models)
• Pricing of Coverage Items

Oracle Internal & Oracle Academy Use Only

• Pricing of Subscription Items

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

This section explains how standard items are priced.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 4 - 19

 Pricing of Standard Items

Standard items are items that aren’t configurable.

All the pricing information we’ve discussed so far applies to
standard items, except where indicated.

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Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

The slides that follow provide information about pricing for configurable items, coverage
items, and subscription items.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 4 - 20

 Topics

• Price Lists
• Charges
• Adjustments
• Pricing of Standard Items
• Pricing of Configurable Items (Models)
• Pricing of Coverage Items

Oracle Internal & Oracle Academy Use Only

• Pricing of Subscription Items

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

This section explains how configurable items are priced.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 4 - 21

 Pricing of Configurable Items (Models)

• Define charges for a configured item and its components.

– Define adjustments only at the root.
– Charges are rolled up to the root at runtime to provide the price
for the entire configuration.
• Manage component-level charges through:
– Hierarchical view

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– Summary view

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

Example: For a configured desktop called Desktop123, the root model is priced at 500 USD.
Components:
1. Hard drive option is priced at 50 USD.
2. RAM is priced at 30 USD.
3. Modem is priced at 20 USD.
At runtime, the rollup charge for the Desktop123 is 600 USD (root model+hard
drive+RAM+modem charges). You must define a pricing charge for each component item of
the configuration. You can set this charge to 0, but you must define a charge. Rollup charges
are created when prices are executed. You can define tier-based and attribute-based
adjustments only on the root item. You can use the hierarchical and summary views of a price
list for ease of setup and for viewing pricing of the model structure.
• Hierarchical view: You can expand the structure tree to review charges that are
defined at individual levels and understand how they contribute to the model's price.
• Summary view: You can view the entire structure using a flat summary view where you
can define charges of the model and its components together.
Note: While the predefined calculations require a pricing charge to be defined for each
component, you can extend the logic through the pricing algorithms.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 4 - 22

 Topics

• Price Lists
• Charges
• Adjustments
• Pricing of Standard Items
• Pricing of Configurable Items (Models)
• Pricing of Coverage Items

Oracle Internal & Oracle Academy Use Only

• Pricing of Subscription Items

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

This section explains how coverage items are priced.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 4 - 23

 Pricing of Coverage Items

• Coverage item: An item that adds value by providing coverage

for a covered item.
• When you define coverage items you:
– Include a duration and period
— Characterized by Service Duration Type, Service Duration, and
Duration Period
Service Duration Type

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—

— Fixed
— Variable
— Open-Ended

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

Now that you understand how items are priced, let’s discuss pricing of coverage items and
subscriptions.
Examples of covered items and coverage items
• Server and 6-month warranty
• MRI machine and technical support
Note: You can’t use tiers and matrices for coverage items.
Service Duration Type
• Fixed: Duration (a number) and period (time-based UOM, such as year or month) are
required. You enter the values in the Product Information Management work area, and
they default as read-only on the price list and in Order Management.
• Variable: You enter the values in the Product Information Management work area. The
values default in the price list, but users can specify the service duration and service
duration period for the pricing rules. Similarly, the values default in the Order
Management work area and the order entry specialist can change the values.
• Open-ended: No default value appears for these attributes. The order entry specialist
must set them.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 4 - 24

Based on the service duration and period, Pricing also calculates the duration extended
amount for coverage items. You must set up the time-UOM mapping correctly. Otherwise,
Order Management won’t show a price. This mapping is a setup task in Order Management.

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Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 4 - 25

 Pricing of Coverage Items

• Define a one-time charge or recurring charges for the

coverage item.
– Can be an amount or as a percentage of the covered item price
– Covers all items
• Calculate extended amount
– Calculated for one-time charge only

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• Calculate duration extended amount
– For recurring charges, the extended amount is calculated
taking into account the duration. (extended amount multiplied
by the duration)
– For one-time charges, duration extended amount is the same
as the extended amount.

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

Define the coverage item price as an amount or as a percentage of the covered item price.
Percentage of Covered Item Price
Calculation: Percentage of price of covered item
Example: An extended warranty on an 49-inch HD TV might be 20% of the price of the
TV and is billed once, upon purchase of the warranty.

450 USD=List price for the one-time sale charge of the TV

90 USD=One-time sale price of the warranty (20% of the one-time sale charge for the
TV)
Duration Extended Amount for Coverage Item
• Calculation: Unit Price x Quantity x Duration x UOM=Duration Extended Amount.
• Example: The price of the Gold Warranty coverage for a laptop for three years is 10
USD for each year, with a total amount of 30 USD over the full three-year period. In this
case, you have a yearly recurring charge of 10 USD, so the extended amount is 10 x 5
(number of laptops) =50. Therefore, the extended amount for the duration is (10x3) 5
laptops=150 USD

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 4 - 26

 Topics

• Price Lists
• Charges
• Adjustments
• Pricing of Standard Items
• Pricing of Configurable Items (Models)
• Pricing of Coverage Items

Oracle Internal & Oracle Academy Use Only

• Pricing of Subscription Items

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

This section explains how subscription items are priced.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 4 - 27

 Pricing of Subscription Items

• Subscription: Combines the characteristics of both a covered

item and a coverage item. You can enable them for contract
coverage, just as you can with a covered item, making them
available to associate services. They also have service duration
and period, just as coverage items do.
• When you define subscription items you:
– Enable Sales Product Type of Subscription in the Product

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Information Management work area.
– Include a duration and period
— Characterized by Service Duration Type, Service Duration, and
Duration Period
— Service Duration Type can be Fixed, Variable, Open-Ended
– Calculate duration extended amount
– Define one-time and recurring charges
– Define tier-based and attribute-based adjustments
Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

Examples of a subscription:
1-year subscription to a music magazine
1-year subscription to software-as-a-service (SaaS)
Service Duration Type
• Fixed: Duration (a number) and period (time-based UOM, such as year or month) are
required. You enter the values in the Product Information Management work area, and
they default as read-only on the price list and in Order Management.
• Variable: You enter the values in the Product Information Management work area. The
values default in the price list, but users can specify the service duration and service
duration period for the pricing rules. Similarly, the values default in the Order
Management work area and the order entry specialist can change the values.
• Open-ended: No default value appears for these attributes. The order entry specialist
must set them.
Based on the service duration and period, Pricing also calculates the duration extended
amount for subscriptions. You must set up the time-UOM mapping correctly. Otherwise, Order
Management won’t show a price. This mapping is a setup task in Order Management.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 4 - 28

Duration Extended Amount for Subscription Item
• Calculation: Unit Price x Quantity x Service Duration (Service Duration and Duration
Period)
• Example: The price of a subscription for Vision Trade Magazine is 50 USD for each
year. The customer orders a two-year subscription, so the calculation is: 50 USD per
year x 1 subscription x 2 years (UOM=year)= 100 USD
Note: The above calculation assumes the service duration period is the same as price
periodicity UOM for the price list recurring charge. If the recurring charge is set to
$10/month, and the subscription is for 2 years, then the calculation is (10/month * 1
subscription * 2 Years (= 24 months) = 240

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Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 4 - 29

 Practices: Overview

• Practice 4-1: Creating a Price List for a Standard Item With

Multiple Charges
• Practice 4-2: Adding a New Condition Column to a Matrix
Class
• Practice 4-3: Creating a Price List for a Coverage Item That
Covers a Standard Item

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Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

Practice 4-1: This practice takes you through the process of creating a price list for a standard
item with one-time and recurring charges.
Practice 4-2: This practice takes you to the pricing setups to define an attribute pricing rule for
a standard item using the matrixes feature.
Practice 4-3: This practice takes you through creating a price list for a coverage item that
covers a standard item.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 4 - 30

 Summary

In this lesson, you should have learned how to:

• Define and modify pricing rules on a price list
– Standard items
– Configurable items (models)
– Subscription items
– Coverage items

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• Describe pricing charges and how adjustments on a price list
can affect the list price

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 4 - 31

Oracle Internal & Oracle Academy Use Only
 5
Discount Lists

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Part 2: Pricing
Order Management and Fulfillment Cloud
Implementation

Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

 Order-to-Cash Flow
Discount Lists

Optimize Orchestrate
Sourcing & Fulfillment
Manage, View Schedule Pick & Ship
& Enrich
Order

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Order Global Order
Inventory Finance
Create, Management Promising
Bill & Collect
Configure &
Price Order

Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

This diagram presents the overall order-to-cash flow. An order is created or captured in
Oracle Order Management Cloud. The order is priced using Oracle Fusion Pricing. Products
can be configured using Oracle Fusion Configurator. The order is enriched to include useful
fulfillment information. 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 in the case of models and kits. Order Management Cloud
orchestrates order fulfillment, which includes but isn’t limited to reserving material, sending
requests to ship material, sending requests to generate invoices, and billing customers.
Oracle Fusion Shipping ships the product to the customer. Oracle Financials Cloud sends the
invoices to the customer.
You can use Order Management Cloud to fulfill standard products, services, configurations,
models, and kits. You can also use various fulfillment methods, such as drop shipment, back-
to-back, and internal transfers.
This diagram focuses on order creation and submission.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 5 - 2

Objectives

After completing this lesson, you should be able to:

• Define a discount list
• Define different types of discount rules
• Define discount rules for:
– Standard items
– Configured item

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Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 5 - 3

 Topics

Discounts
• Simple
• Tier-based
• Attribute-based
• Manual

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Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

This slide lists the topics that will be discussed during this lesson.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 5 - 4

Discount List Use Case

OTC Corporation has special discounts for key products for its top
customers. Pricing administrators manage these discounts on the
on the Corporate Discount List. There are discounts for standard
items and for configured items. These discounts can be a simple
discount, tier-based discounts, or attribute discounts.
As part of your annual pricing review of Computer Service and
Rentals, you will evaluate whether you need to update these

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discounts to be more competitive.

Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 5 - 5

 Topics

Discounts
• Simple
• Tier-based
• Attribute-based
• Manual

Oracle Internal & Oracle Academy Use Only

Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

This section discusses discounts and how they are administered through rules.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 5 - 6

 Discount Lists
A discount list is a container of rules for defining discounts for:
• Standard items, services, and subscriptions
• Configured items
• Assignment of a discount list to pricing strategy

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Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

Discount lists: Discount rules can be simple, tier-based, and attribute-based. You can define
discounts, markups, or price overrides. With a discount list, you define discounts based on the
price type, charge type, or charge subtype combination. For discount lists, the discount is
calculated after list price. These discounts are applied at run time to the pricing charges on
the transaction that have the same price type, charge type, and charge subtype combination.
You can define various type of discounts:
• Simple, such as a holiday season discount
• Tier-based, such as a volume discount
• Attribute-based, discounts for all items of a particular color
You can assign one or more discount lists to one or more strategies. You can view the pricing
strategies that are associated with the specific discount list in the References tab within the
Discount List pages.
You can’t create discounts for coverages on a discount list.
This screenshot depicts the discount rules associated with a selected item.
Navigation
1. From the Navigator, click Pricing Administration.
2. On the Overview page, click the Tasks panel tab and then click Manage Discount Lists.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 5 - 7

 Topics

Discounts
• Simple
• Tier-based
• Attribute-based
• Manual

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Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

This section discusses simple discounts.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 5 - 8

 Simple Discounts

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Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

The screenshot depicts discount rules, which are a part of the discount definition process.
Observe that you can associate a rule with an effectivity date, price type, charge type, and
charge subtype.
Use a simple discount rule for creating discounts such as:
• 5% off of a one-time sale price
• 5 USD off a recurring maintenance charge

Continuing the cellular phone example from the price list lesson:
• Base price=445 USD: Assuming no price list-level adjustments, then the list price=445
USD.
• A seasonal discount of 10% is applied for Christmas, so net price is 400.50 USD (list
price minus the discount).

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 5 - 9

 Establishing Discounts for Configurable Models

• You can define discount rules for the root and for the
components.
• You can choose to discount the charges at root item,
component, or rollup charge.
• Define tier and attribute adjustment:
– At the root

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– Not supported for component
• Manage component level rules through:
– Hierarchical view
– Summary view

Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

You can define simple discounts for the root item and its components. You can define tier-
based and attribute-based discounts only at the root item level.
When you define a discount on the root, you can choose whether to make the discounts
applicable to the root or to the rollup charge. To apply the discount to the rollup charge, select
Apply to Rollup at the root. The rollup charge is calculated at run time. For example, for a
configuration where the price is 500 USD for the root model item, and charges for the
components are 50, 30, and 20 USD. There can be a 25 USD discount on the root model
item, and a 10 percent discount on the entire configuration, which is applied to the rollup
charge.
You can use the hierarchical and summary views to set up and review the discount rules
conveniently. The hierarchical view shows the configuration hierarchy, and the summary view
shows a flat structure of the configuration.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 5 - 10

 Topics

Discount
• Simple
• Tier-based
• Attribute-based
• Manual

Oracle Internal & Oracle Academy Use Only

Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

This section discusses tier-based discounts.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 5 - 11

 Tier-Based Discounts

Tier adjustments:
• Based on volume
– Item quantity
– Extended amount
• Applied after list price calculation
• Support on line or on document

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• Types:
– Discount amount
– Discount percent
– Markup amount
– Markup percent
– Price override

Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

With tier-based adjustments, discounts are based on volume.

You can define tier discounts for a price type, charge type, and charge subtype.
You can create discount lists in the Pricing Administration work area.
Navigation
1. In the Navigator, click Pricing Administration.
2. On the Overview page, click the Tasks panel drawer and click Manage Discount Lists.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 5 - 12

 Topics

Discount
• Simple
• Tier-based
• Attribute-based
• Manual

Oracle Internal & Oracle Academy Use Only

Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

This section discusses attribute-based discounts.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 5 - 13

 Attribute-Based Discounts

Attribute adjustments:
• Are based on a set of conditions or attributes
• Are supported through the matrix rules
• Model specific conditions for determining the adjustment
Example: Attribute adjustments that adjust shirt prices based on
the size and color of the shirt

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Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

In some situations, you might need to calculate or adjust a price according to the attributes of the item.
However, it might be too cumbersome to define these calculations for each item.
You can define attribute-based discounts for a price type, charge type, and charge subtype.
Discount list offers discounts on top of the list price at the time of execution.

This table shows the attributes of a T-shirt. The column headings are the following attributes: Size,
color, adjustment, adjustment type, adjustment basis. The adjustment amount is 10 USD for red shirts
of size XL. The discount percent is 7.5 for shirts of size L.

This example assumes that size and color are defined as item attributes (item extensible flexfields
[UDA]) in the Product Information Management work area.

Reference item attributes in a pricing matrix on a price list line or on a discount list line. This is
supported at the All Items level and at the Item level.

Note: You can use item attributes within a pricing algorithm, including within the Price Sales Transaction
algorithm.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 5 - 14

 Attribute-Based Discounts

To use item extensible attributes in Pricing:

1. Create the item extensible attribute.
2. Add your attribute group to an item class.
3. Define an attribute page and associate the page with the
Pricing functional area.
4. Edit the matrix class (Pricing Term Matrix) to add the item

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attribute as a condition for the matrix class.
5. Create the discount list.

Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

Create the item extensible attribute and add the attribute group to an item class in the Product
Management work area.
Edit the matrix class and create the discount list in the Pricing Administration work area.

This course describes steps 4 and 5.

For full details on creating an attribute-based discount, see Using Item Extensible Attributes in
Pricing: Procedure in Oracle Help Center.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 5 - 15

 Topics

Discount
• Simple
• Tier-based
• Attribute-based
• Manual

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Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

This section discusses manual discounts.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 5 - 16

 Manual Adjustments

• Allows users to apply a manual adjustment to an order in

Order Management
• Allows Order Management users to:
– Adjust the net price according to a percentage of the list price
or net price
– Adjust the net price according to an amount

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– Set a new value for the net price (price override)
– Apply one or more price adjustments to a charge for each order
line
– Specify a reason for the price adjustment

Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

Pricing validates each manual adjustment against the pricing guidelines that you define
in Pricing. Validation of the manual adjustment ensures that adjustments stay within
your company’s policies.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 5 - 17

 Manual Adjustments

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Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

In the Pricing Administration work area, you can determine whether to allow price
adjustments in Order Management. Select a price list, locate an item, and then select
“Allow manual adjustment” on the price list charge.

This screenshot depicts the Edit Price Lists page with the Price section, which is where
you select the Allow Manual Adjustment check box.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 5 - 18

 Demonstration: 5-1

Reviewing a Discount List

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Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

This demonstration shows you the discount list and the discount rules of the standard item for
the order created earlier.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 5 - 19

 Practice: 5-1

Creating a Discount List for a Standard Item with Multiple

Charges

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Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

In this practice, you create a discount list for a standard item with rules for one-time and
recurring charges with simple and tier discounts.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 5 - 20

 Summary

In this lesson, you should have learned how to:

• Define a discount list
• Define different types of discount rules
• Define discount rules for:
– Standard items
– Configured items

Oracle Internal & Oracle Academy Use Only

Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 5 - 21

Oracle Internal & Oracle Academy Use Only
 6
Shipping Charge Lists

Oracle Internal & Oracle Academy Use Only

Part 2: Pricing
Order Management and Fulfillment Cloud
Implementation

Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

 Order-to-Cash Flow
Pricing Shipping Charge Lists

Optimize Orchestrate
Sourcing & Fulfillment
Manage, View Schedule Pick & Ship
& Enrich
Order

Oracle Internal & Oracle Academy Use Only

Order Global Order
Inventory Finance
Create, Management Promising
Bill & Collect
Configure &
Price Order

Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

This diagram presents the overall order-to-cash flow. An order is created or captured in
Oracle Order Management Cloud. The order is priced using Oracle Fusion Pricing. Products
can be configured using Oracle Fusion Configurator. The order is enriched to include useful
fulfillment information. 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 in the case of models and kits. Order Management Cloud
orchestrates order fulfillment, which includes but isn’t limited to reserving material, sending
requests to ship material, sending requests to generate invoices, and billing customers.
Oracle Fusion Shipping ships the product to the customer. Oracle Financials Cloud sends the
invoices to the customer.
You can use Order Management Cloud to fulfill standard products, services, configurations,
models, and kits. You can also use various fulfillment methods, such as drop shipment, back-
to-back, and internal transfers.
This diagram focuses on order creation and submission.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 6 - 2

Objectives

After completing this lesson, you should be able to:

• Define a shipping charge list
• Define item-based shipping charges
• Define shipping charges for:
– Standard items
– Configured items

Oracle Internal & Oracle Academy Use Only

Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 6 - 3

 Topics

• Shipping Charge List Use Case

• Managing Shipping Charge Lists
• Defining Shipping Charges

Oracle Internal & Oracle Academy Use Only

Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

This slide lists the topics that will be discussed during this lesson.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 6 - 4

 Topics

• Shipping Charge List Use Case

• Managing Shipping Charge Lists
• Defining Shipping Charges

Oracle Internal & Oracle Academy Use Only

Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

This section describes a use case that provides context to concepts you will learn about
shipping charges.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 6 - 5

Shipping Charge List Use Case

OTC Corporation manages the shipping charges for standard and

configured products on the corporate shipping charge list. You
are a pricing administrator responsible for reviewing the pricing
strategy for Computer Service and Rentals.
As part of the annual pricing review, you will review the details of
the corporate shipping charge list for the handling charges for the
carriers DHL and UPS.

Oracle Internal & Oracle Academy Use Only

Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 6 - 6

 Topics

• Shipping Charge List Use Case

• Managing Shipping Charge Lists
• Defining Shipping Charges

Oracle Internal & Oracle Academy Use Only

Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

This section describes shipping charge lists and how to add a charge to a list.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 6 - 7

 Managing Shipping Charge Lists

• Multiple shipping charges for one or more items

• Item-based shipping charges
• Assign to pricing strategy

Oracle Internal & Oracle Academy Use Only

Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

As a pricing administrator for OTC Corporation, you are responsible for reviewing and
determining the shipping charges for your standard and configured items. You can define
multiple shipping charges for one or more standard or configured items. You can create
shipping rules to calculate freight, duty, handling, and insurance charge on a shipping charge
list. If multiple rules exist, then the shipping charge is applied for each line. For example, for a
given shipping method for an item, if there are rules for 10 USD freight and 15 USD handling
charges, then Pricing returns two charges for that line. As this screenshot shows, when you
create item charges, you can define shipping charges for multiple items for multiple shipping
methods with different charge definitions. The charges are then created. You edit the amount
and dates on the edit page.
Defining shipping charges for a configured item is very similar to creating it for standard items.
You can create shipping charges only for the root item of the configuration.
You can assign one or more shipping charge lists to one or more strategies. You can view the
pricing strategies that are associated to the specific shipping charge list in the References tab
within the Shipping Charge List pages.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 6 - 8

Navigation
1. In the Navigator, select Pricing Administration.
2. On the Overview page, click Tasks and select Manage Shipping Charge Lists.
3. On the Manage Shipping Charge Lists page, click the Create button to launch Shipping
Charge Lists. Complete the mandatory fields and click Save and Edit.
4. On the Edit Shipping Charge Lists page, select the Items subtab under the Shipping
Charges tab.
5. On the Items subtab, create an item charge.

Oracle Internal & Oracle Academy Use Only

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 6 - 9

 Topics

• Shipping Charge List Use Case

• Managing Shipping Charge Lists
• Defining Shipping Charges

Oracle Internal & Oracle Academy Use Only

Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

This section discusses how to define shipping charges.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 6 - 10

 Define Item-Based Shipping Charges

• Different shipping charges for an item for different shipping

methods
• Date effectivity for item, shipping method, and shipping charge
definition combination

Item Shipping Method Shipping Charge Shipping Charges

Definition

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AL123 ABC-Air-Standard Freight $10.00

AL123 XYZ-Air-2 days Freight $12.00

AL123 XYZ-Air-2 days Handling $5.00

Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

By default, Oracle Fusion Pricing provides the following pricing charge definitions for shipping
charges:
• Duty
• Freight
• Handling
• Insurance
Note: You can also define your own charge definitions, if needed.
The table above shows multiple shipping charges for the item AL123. The rows contain the
following information:
• First row: Shows a shipping method of Air-Standard with a shipping charge definition of
Freight, and a shipping charge of 10 US Dollars (USD)
• Second row: Shows a shipping method of XYZ-Air-2 days with a shipping charge
definition of Freight, and a shipping charge of 12 USD
• Third row: Shows a shipping method of XYZ-Air-2 days with a shipping charge
definition of Handling, and a shipping charge of 5 USD
Example: If an order is placed for the item AL123 with the shipping method of XYZ-Air-2
days, then a 12 USD freight charge and a 5 USD handling charge is applied to the order line.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 6 - 11

 Create Shipping Charges

Select Charges
Attributes

Oracle Internal & Oracle Academy Use Only

Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

You can create shipping charges through a different user flow than the other pricing entities.
You can create these rules first all at once. After the rules are created, you can edit the rule
details.

The first screenshot depicts where you create the charge, in the Create Item Charge window.
The second screenshot depicts the Shipping Charges tab, where you can edit the rule details.

Navigation:
1. From the Navigator, select Pricing Administration.
2. On the Overview page of the Pricing Administration work area, click the Tasks panel tab,
and select Manage Shipping Charge Lists.
3. Search for a shipping charge list and then select it.
4. On the Edit Shipping Charge List page, click the Items tab.
5. In the Search Results area, click Create, and then select Create Item Charge.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 6 - 12

 Demonstration: 6-1

Reviewing a Shipping Charge List

Oracle Internal & Oracle Academy Use Only

Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

This demonstration shows a shipping charge list.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 6 - 13

 Summary

In this lesson, you should have learned how to:

• Define a shipping charge list
• Define item-based shipping charges
• Define shipping charges for:
– Standard items
– Configured items

Oracle Internal & Oracle Academy Use Only

Copyright © 2016, Oracle and/or its affiliates. All rights reserved.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 6 - 14

 7
Guidelines

Oracle Internal & Oracle Academy Use Only

Part 2: Pricing
Order Management and Fulfillment Cloud
Implementation
 Order-to-Cash Flow
Price Lists

Optimize Orchestrate
Sourcing & Fulfillment
Manage, View Schedule Pick & Ship
& Enrich
Order

Oracle Internal & Oracle Academy Use Only

Order Global Order
Inventory Finance
Create, Management Promising
Bill & Collect
Configure &
Price Order

This diagram presents the overall order-to-cash flow. An order is created or captured in
Oracle Order Management Cloud. The order is priced using Oracle Fusion Pricing. Products
can be configured using Oracle Fusion Configurator. The order is enriched to include useful
fulfillment information. 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 in the case of models and kits. Order Management Cloud
orchestrates order fulfillment, which includes but isn’t limited to reserving material, sending
requests to ship material, sending requests to generate invoices, and billing customers.
Oracle Fusion Shipping ships the product to the customer. Oracle Financials Cloud sends the
invoices to the customer.
You can use Order Management Cloud to fulfill standard products, services, configurations,
models, and kits. You can also use various fulfillment methods, such as drop shipment, back-
to-back, and internal transfers.
This diagram focuses on order creation and submission.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 7 - 2

Objectives

After completing this lesson, you should be able to:

• Describe guidelines
• Explain how guidelines are used in the context of price
overrides and overall pricing

Oracle Internal & Oracle Academy Use Only

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 7 - 3

Topics

• Guidelines: Overview
• Guidelines: Setup

Oracle Internal & Oracle Academy Use Only

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 7 - 4

 Topics

• Guidelines: Overview
• Guidelines: Setup

Oracle Internal & Oracle Academy Use Only

This section discusses what guidelines are and what they’re used for.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 7 - 5

 Guidelines: Overview

• Used to enforce the

organization’s pricing
policies.
• Guidelines are assigned
Charge
to a pricing strategy. component and
item to which
guideline applies

Oracle Internal & Oracle Academy Use Only

Conditions
and violations
for guideline

You can create guidelines to enforce your organization’s pricing policies during ordering
and pricing. A pricing administrator sets up the guidelines. Then, when order entry
specialists take orders, the prices are validated against the guidelines.
You can define guidelines for specific charge components based on an organization’s
business requirements. Guidelines are specific to a charge component. For example,
you can create a guideline against manual adjustments or to the net price. The
guideline calculation types include absolute value, discount amount, discount
percentage, or percentage of.
An order is validated against the guidelines at save, customer update, re-price, validate,
and when an order is submitted, the complete transaction is validated. At line pricing
events and when a manual adjustment is applied, only the specific line is validated.
Guidelines associated with the strategy of the transaction are evaluated. Only one
strategy applies for an entire order.
In the screenshot, a guideline is in place for component Your Price (the net price) for
item AS54888. If the price goes below 5000, then an informational-only violation is
returned. If the price goes below 3000, then an error type violation is returned.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 7 - 6

Navigation:
1. From the Navigator, click Pricing Administration.
2. In the Pricing Administration work area, click the Tasks panel tab and select Manage
Guidelines.
3. On the Manage Guidelines page, search for a guideline. Select the guideline in the
Search Results and click the Edit icon.

Oracle Internal & Oracle Academy Use Only

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 7 - 7

 Guideline Validation

Orders are validated against the guidelines, and warnings

indicate deviation from the policies.

Oracle Internal & Oracle Academy Use Only

If a guideline is violated, then a violation message appears to the order entry specialist.
All violations, irrespective of type, are only treated as warnings when displayed in Order
Management, meaning that order entry specialists can submit an order even if it has a
violation.
The screenshot above depicts a message that says that a price adjustment in row 2
contains a warning. The warning says that the charge has a pricing violation for the
price component Custom Adjustment. This price component must be less than or equal
to 100 USD.

Navigation:
1. From the Navigator, select Order Management.
2. In the Order Management work area, create an order and edit the price.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 7 - 8

 Topics

• Guidelines: Overview
• Guidelines: Setup

Oracle Internal & Oracle Academy Use Only

This section describes how to set up guidelines.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 7 - 9

 Guidelines: Setup

Summary of setups:
1. Make price elements eligible for use in creation of
guidelines.
2. Use the Pricing Charge Guideline matrix class to create
the conditions that drive enforcement of the guidelines.
3. Make sure the matrix class is mapped to the Pricing

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Charge Guideline matrix type.
4. Make sure the pricing operation is mapped to the pricing
process.

A pricing administrator sets up guidelines.

Navigation: Manage Pricing Matrix Types task.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 7 - 10

 Make Price Elements Eligible for Use in Guidelines
Creation

Enable price
elements for

Oracle Internal & Oracle Academy Use Only

guidelines

First, indicate what price elements pricing administrators can create guidelines against.
If you select a check box on the Manage Price Elements page, then the price element
appears in the Component value in the Charge Guideline Components region on the
Manage Guidelines page.

This screenshot depicts the Manage Price Elements page with several predefined price
elements.

Navigation:
1. From the Navigator, select Setup and Maintenance.
2. Select the Order Management offering.
3. Search for the Manage Price Elements task. Select the task in the Pricing functional
area.
4. Select Active=Yes, and then click Search.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 7 - 11

 Create Conditions in the Pricing Matrix Class

Define the
conditions to
drive guideline
rules

Oracle Internal & Oracle Academy Use Only

Use the predefined pricing matrix class called Pricing Charge Guidelines. You can
manage the conditions to drive the conditions for your guidelines rules. When the order
is subjected to the guidelines, Pricing returns the constraining value and violation type,
such as error, information only, or warning.

This screenshot depicts the Edit Matrix Class page, with its Condition Columns and
Result Columns.

Navigation:
1. From the Navigator, select Pricing Administration.
2. On the Overview page, click the Tasks panel tab. Select Manage Matrix Classes
under Pricing Configuration.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 7 - 12

 Map a Matrix Class to the Pricing Charge Guideline
Matrix Type Set up the mapping of the
matrix class to the Pricing
Charge Guideline matrix
type

Oracle Internal & Oracle Academy Use Only

Make sure that the correct matrix class is mapped to the Pricing Charge Guideline
matrix type.

This screenshot depicts the Pricing Charge Guideline matrix type, along with other
matrix types.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 7 - 13

 Map the Pricing Operation to the Pricing Process

Oracle Internal & Oracle Academy Use Only

The mappings from the pricing operation to the pricing process are predefined, but you
can update the pricing process.

This screenshot depicts the Manage Pricing Process Assignments page, where the
mappings are defined.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 7 - 14

 Demonstration: 7-1

Adding a Pricing Charge Guideline

Oracle Internal & Oracle Academy Use Only

In this demonstration, you will view an existing guideline and add a new one to the same
guideline associated with the pricing strategy.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 7 - 15

 Summary

In this lesson, you should have learned how to:

• Explain how guidelines are used in the context of price
overrides and overall pricing
• Create a guideline

Oracle Internal & Oracle Academy Use Only

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 7 - 16

 8
Configure Orders

Oracle Internal & Oracle Academy Use Only

Part 3: Order Capture and Change Processing
Order Management and Fulfillment Cloud
Implementation Course
 Order-to-Cash Flow
Ordering a Configurable Product

Optimize Orchestrate
Sourcing & Fulfillment
Manage, View Schedule Pick & Ship
& Enrich
Order

Oracle Internal & Oracle Academy Use Only

Order Global Order
Inventory Finance
Create, Management Promising
Bill & Collect
Configure &
Price Order

This diagram presents the overall order-to-cash flow. An order is created or captured in
Oracle Order Management Cloud. The order is priced using Oracle Fusion Pricing. Products
can be configured using Oracle Fusion Configurator. The order is enriched to include useful
fulfillment information. 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 in the case of models and kits. Order Management Cloud
orchestrates order fulfillment, which includes but isn’t limited to reserving material, sending
requests to ship material, sending requests to generate invoices, and billing customers.
Oracle Fusion Shipping ships the product to the customer. Oracle Financials Cloud sends the
invoices to the customer.
You can use Order Management Cloud to fulfill standard products, services, configurations,
models, and kits. You can also use various fulfillment methods, such as drop shipment, back-
to-back, and internal transfers.
This diagram focuses on order creation and submission.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 8 - 2

Objectives

After completing this lesson, you should be able to:

• Outline the key features of Oracle Fusion Order Management
and Oracle Fusion Configurator integration
• Create an order with a configurable product
• Use the Configurator user interface to configure a product
• Explain the different actions within the Configurator user

Oracle Internal & Oracle Academy Use Only

interface
• Identify the contents of the Review Configuration page
• Identify the contents of the View Components
page

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 8 - 3

Topics

• Configurable Products: Explained

• Selecting the Configurable Options in a Configurable Product
• Integration with Oracle Fusion Pricing

Oracle Internal & Oracle Academy Use Only

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 8 - 4

 Topics

• Configurable Products: Explained

• Selecting the Options of a Configurable Product
• Integration with Oracle Fusion Pricing

Oracle Internal & Oracle Academy Use Only

This section introduces configurable products.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 8 - 5

 Configurable Products: Explained

Configurable Product
Any product that can be
produced or put together the
way customers want it. The
customer has some options to
choose from, and the business

Oracle Internal & Oracle Academy Use Only

that sells the product is set up
to accommodate those
options.

This lesson discusses configurable products, how they are ordered, and how pricing works for
them.
Example 1: A customer orders a pizza. The customer chooses from some available options,
such as crust and toppings. The pizzeria makes the pizza to the customer’s specifications.
Example 2: A customer orders a laptop or desktop computer on a web store. The customer
can order just the base product with some preset options, or the customer can configure it as
needed by selecting options such as the hard drive and CPU speed.

The graphic depicts a user interface (UI) in which you create your own pizza by selecting from
a variety of options.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 8 - 6

 Configurator

Products Centralized
configured to management
unique of
customer configurator
needs models

Oracle Internal & Oracle Academy Use Only

Simplified Cloud-enabled:
configuration Integrated with
of complex Order Management
solutions

Use Configurator to configure products to suit customer needs. You can set it up in a way that
simplifies the configuration of complex products or solutions. For example, you can ask the
customer a question such as, “What do you want to use your computer for?” Possible answer
choices could be Gaming, Web Browsing, and Email.
To accommodate each of these requirements, your company might offer different CPU
speeds, graphics cards, and display sizes for the monitor. The customer doesn’t need to be
aware of these details. Instead, customers can indicate that they want a computer for gaming.
A product configuration specialist can set up the application with rules that pick the parts that
are required to put together a computer for gaming.
The next slide provides an overview of the management of configurator models.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 8 - 7

 Configurator Modeling

Workspace
Import and
Refresh Product Manage Guided
Management Selling Structure
Data
Model
Manage
available to
Rules
Release be used

Oracle Internal & Oracle Academy Use Only

from Order
Management
Manage UIs

Test Model UI and

Behavior

Configurator uses the product definition (item structure) from the Product Information
Management work area. You can enhance the product definition further by using the setup
part of the Configurator application called Configurator Modeling Environment.
This slide shows a high-level overview of what is done in the modeling environment. You can
write rules, create user-friendly interfaces, and add questions that end users respond to,
based on which rules are triggered, to select the actual parts. Then the completely developed
product model, with the rules and UIs, is released and is made available to end users from
Order Management to configure the product.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 8 - 8

 Topics

• Configurable Products: Explained

• Selecting the Options of a Configurable Product
• Integration with Oracle Fusion Pricing

Oracle Internal & Oracle Academy Use Only

This section discusses how to select the options of a configurable product.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 8 - 9

 Selecting the Options of a Configurable Product:
Configurator Runtime
• Dynamic runtime user
interface (embedded
task flow)
• Validation service
• Seeded UI templates
and template maps
• Runtime user
interface definition

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• UI conditions in UI
editing
• Visual UI page editing
Configurator • Testing of model
User Interface
Templates behavior and UIs
• Transactional item
attributes
• Integration with
Pricing

End users interact with the Configurator Runtime, which is a UI for selecting the options for a
configurable product and for viewing pricing. If you choose to configure the product, then the
UI is dynamically assembled. You can configure elements within the user interface to be
displayed or hidden conditionally, based on other selections that an end user makes.

Validation
Configurator Runtime validates all the options selected for a configured product to ensure
they are still valid, especially in the case of longer lead times between when an order is
created and submitted for fulfillment.
Simple example of validation: Assume your business is offering 20 GB hard drives as an
option today, when an order entry specialist creates the order. But the clerk is waiting for
inputs on other products from the customer to add to the order. Meanwhile, your business
changes the product offering so that it no longer includes a 20 GB hard drive. Therefore, you
can end-date the 20 GB hard drive item to not be available anymore. When the order entry
specialist, who is unaware of these changes, submits the order after adding the awaited
inputs, Configurator validates and provides feedback that the 20 GB item is not available
anymore. The order entry specialist must reconfigure the computer to pick another hard drive.
The screenshot contains the three pages where you select options for a car.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 8 - 10

 Configurator Runtime User Interface

The user interface is

dynamically assembled at
runtime by using templates
• Templates provide a consistent
look and feel and interactivity.
• Seeded templates for all major
navigation and controls
• Visual user interface editing of

Oracle Internal & Oracle Academy Use Only

pages in Configurator Modeling
Environment
Based on Oracle Application
Development Framework (ADF)
• Java Server Faces (JSF) user
interface component technology

We talked about enhancing the product definition from the Product Information Management
work area using the Configurator Modeling Environment. You aren’t required to create a UI for
a configurable product in the Configurator Modeling Environment. As long as the item
structure is defined and the item has configurable options, a default UI is displayed for the
Order Management user to select the options. Seeded UI templates and template maps are
used to render a default UI.
If you work on a model in Configurator Modeling Environment, then you can create and
modify the UI for a better user experience by adding conditional rendering of contents in the
UI, adding images, and so on.
Assume that you are configuring a computer and you have the option of adding an external
hard drive, which itself is configurable. You can set up the UI in such a way that the options to
configure the external hard drive are presented only if the end user chooses to buy an
external hard drive.
Configurator Runtime uses the ADF framework that all Oracle Fusion applications use,
allowing for a consistent user experience between Configurator and the application in which it
is embedded.
The screenshot depicts page 1 of a series of pages where you select options for a new car.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 8 - 11

 Configurator UI Navigation Schemes

• Single page
• Dynamic tree
• Step by step

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Configurator supports three navigation schemes by default.
These schemes are available only when you use Configurator Modeling Environment to
create UIs. If you don’t import a model into Configurator Modeling Environment, or you import
a model without creating a UI before you release a workspace, then the single page UI is
displayed by default.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 8 - 12

 Single-Page Navigation

• Content in a single page

• Drill down to referenced models
• Scroll, if required

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A single-page navigation scheme collates all the configurable options of a model onto a single
page.
This UI was created by using the Configurator Modeling Environment and is released for use
from Order Management when the tablet is configured for an order. If the model isn’t imported
into Configurator Modeling Environment and the UI isn’t modified, then the stylized text and
images aren’t present in a default UI rendered by Configurator by default.
If a model has referenced models, then you must drill down into the UI for the referenced
model. A referenced model is a model that is a child of the root model item or any option class
within it. For example, a car model can have an engine that has several configurable options,
such as the number of cylinders and turbo-charge. In this case, the engine is the model that is
a child of the car model. The engine is a referenced model.
Actions at the UI level:
• Save for Later: Saves the configuration as is, in the state left by the end user without
the Configurator engine finishing the configuration
• Finish and Review: The Configurator engine finishes the configuration (autocomplete)
and navigates the end user to a review page where all the selections are displayed.
The screenshot depicts one page of options for a tablet.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 8 - 13

 • Finish: The Configurator engine finishes the configuration and returns the selection
information to Order Management.
• Cancel: Warns the end user about losing any selections and returns to the location in
Order Management where the Configurator was invoked.

Oracle Internal & Oracle Academy Use Only

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 8 - 14

 Dynamic Tree Navigation

• Navigate using the tree links.

• Drill down to referenced model UIs.

Oracle Internal & Oracle Academy Use Only

Dynamic tree navigation allows the end user to navigate to a specific page using the tree links
on the left side of the page.
When the UI is created, each of these tree links is created as a page.
If a model has referenced models, then the end user can drill down into the UI for the
referenced model using the Configure icon that is displayed next to the referenced model. No
tree link is available to navigate to the referenced model.
The same UI-level actions, such as single-page UI, are available for this navigation scheme.

The screenshot depicts page 1 of a series of pages where you select options for a new car.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 8 - 15

 Step-by-Step Navigation

• Navigate using steps.

• Train indicates the current step.
• Drill down to referenced model UIs.

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Step-by-step navigation allows the end user to navigate to a specific step using the train steps
that are displayed at the top of the UI.
When the UI is created, each of these tree links is created as a page.
If a model has referenced models, then the user drills down into the UI for the referenced
model by using the Configure icon displayed next to the referenced model. No train step is
available to navigate to the referenced model.
The same UI-level actions as in the single page UI are available for this navigation scheme. In
addition to those actions, the Back and Next buttons provide additional navigation capabilities.

This screenshot depicts page 1 of a series of options for a new car. The options on this page
are oriented differently than the previous set of sedan options.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 8 - 16

 Topics

• Configurable Products: Explained

• Selecting the Options of a Configurable Product
• Integration with Oracle Fusion Pricing

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The section discusses how Order Management integrates with Oracle Fusion Pricing.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 8 - 17

 Integration with Oracle Fusion Pricing

End users can see real-time pricing at runtime.

• Define configured item pricing in Oracle Fusion Pricing.
• At runtime, the pricing engine is invoked to display accurate
pricing.
• It displays prices for items.
• It displays prices and totals on the Review page.

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Prices are fetched from the appropriate price list through integration with Pricing.
Configurator displays the prices in the UI when the price is set up for an item.
The Configuration Review page also displays the total price for the configuration, along with
the price for each selected item.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 8 - 18

 Demonstration: 8-1

Ordering a Configurable Product With a Coverage Item

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This demonstration takes you through the process of creating an order for a configurable
product, which is similar to an order that was created for a standard item. You will:
1. Create the order.
2. Add the item.
3. Configure the item.
4. Add a coverage item to the configured covered item.
5. Validate the order.
6. Submit the order.
It shows what happens when an item that must be configured isn’t configured, and then how
to make the necessary corrections.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 8 - 19

 Practice: 8-1

Creating and Submitting a Sales Order for a Configurable

Product

Oracle Internal & Oracle Academy Use Only

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 8 - 20

 Summary

In this lesson, you should have learned how to:

• Outline the key features of Oracle Fusion Order Management
and Oracle Fusion Configurator integration
• Create an order with a configurable product
• Use the Configurator UI to configure a product
• Explain the different actions within the Configurator UI

Oracle Internal & Oracle Academy Use Only

• Identify the contents of the Review Configuration page
• Identify the contents of the View Components
page

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 8 - 21

Oracle Internal & Oracle Academy Use Only
 9
Change Order Processing

Oracle Internal & Oracle Academy Use Only

Part 3: Order Capture and Change Processing
Order Management and Fulfillment Cloud
Implementation

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

 Order-to-Cash Flow
Change Order Processing

Optimize Orchestrate
Sourcing & Fulfillment
Manage, View, Schedule Pick, Ship
Enrich Order

Oracle Internal & Oracle Academy Use Only

Global
Order
Order Inventory Finance
Create, Management
Promising Bill, Collect
Configure,
Price Order

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

Order-to-Cash Flow Change Management and Process Assignment

This diagram presents the overall order-to-cash flow. An order is created or captured in
Oracle Order Management Cloud. The order is priced using Oracle Fusion Pricing. Products
can be configured using Oracle Fusion Configurator. The order is enriched to include useful
fulfillment information. 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 in the case of models and kits. Order Management Cloud
orchestrates order fulfillment, which includes but isn’t limited to reserving material, sending
requests to ship material, sending requests to generate invoices, and billing customers.
Oracle Fusion Shipping ships the product to the customer. Oracle Financials Cloud sends the
invoices to the customer.
You can use Order Management Cloud to fulfill standard products, services, configurations,
models, and kits. You can also use various fulfillment methods, such as drop shipment, back-
to-back, and internal transfers.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 9 - 2

Objectives

After completing this lesson, you should be able to:

• Explain change management
• Explain compensation

Oracle Internal & Oracle Academy Use Only

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 9 - 3

 Order-to-Cash Data Flow Change
management
and
compensation

Oracle Internal & Oracle Academy Use Only

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

In Order Management, changes to an order are processed automatically. The application’s

change management mechanism automatically adjusts the orchestration process that is
associated with the changed order. You can configure the application to cancel steps of an
orchestration process and to redo them.
Key to the Diagram
A. External order capture systems: The systems where orders originate
B. Fulfillment systems: The systems where inventory is tracked, items scheduled,
reserved, received, and shipped, and where invoices are generated. Fulfillment activities
are not limited to the ones listed here. There may be one or more external fulfillment
systems and one Oracle ERP Cloud fulfillment system.
- External
- Internal
- Oracle Inventory and Cost Management Cloud: Module where the logistics
functions are performed
- Oracle Financials Cloud: Module where the financial transactions are
performed

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 9 - 4

Order-to-Cash Data Flow
C. Order Management and Planning Data Repository: Order Management processes
use data in the repository to cross-reference and validate data. Global Order Promising
Cloud uses supply and demand data refreshed into the order promising engine from the
repository when determining availability. The repository is populated by Order
Management Cloud and Global Order Promising Cloud data collection processes.
D. Oracle Fusion Product Model: Order Management processes use data in the Product
Model to determine the product data for orchestration orders, provide cross-system
product cross-referencing, and provide product structure decomposition rules. (Broader
capability for product information management isn’t needed.)
E. Oracle Fusion Trading Community Model: Order Management processes use data in
the Trading Community Model to determine the customer data for transformed orders
and provide cross-system customer data cross-referencing. (Broader capability for

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customer data management isn’t needed.)
F. Oracle Business Rules (Middleware): The middleware tool that is used to define
business rules that are used during decomposition and orchestration. The rules that are
defined for decomposition are stored in the middleware layer.
G. Oracle Order Management Cloud components:
- Order import: Receives single or bulk sales orders from channels and uses
defined product transformation rules to transform a sales order into a transformed
order.
- Assign and launch: Fulfillment lines are then grouped and assigned.
- Business events: Business events are raised during the fulfillment process at
user-configured trigger points.
- Order entry: Order entry user interface where users can create and submit orders
- Oracle Fusion Pricing: Module where you can define and manage prices for
products
- Oracle Fusion Configurator: Module where you can define and manage the
product configurations
- Orchestration: Automatically sequences the fulfillment steps for processing an
order. Calls task layer services to carry out the steps of the orchestration process
- Task layer services: Execute as steps in user-defined fulfillment process
sequences. These services send information to downstream fulfillment systems
and interpret the responses and updates from those systems. For example, a ship
order process calls the task layer service Create Shipment request to send a
shipment request to the shipping system.
- External interface layer: Manages the communication between Order
Management and external/internal fulfillment systems. Its primary functions are
routing the fulfillment request and transforming the data.
H. Global Order Promising Cloud: Used automatically by an orchestration process to
schedule the best fulfillment options for a fulfillment line. Used manually by a user to
determine and choose availability options when manually managing an order.
I. Order Management work area: Used by a user, such as an order manager, to monitor
order lines.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 9 - 5

 Change Order Business Flow

Locate Submit
Create Make
Original Change
Revision Changes
Order Order Order

Price

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Pick Ship
Shipment Release Confirm

Cash Invoice/Bill

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

This graphic shows the flow for changing an order that was submitted, also known as revising
an order or creating an order revision.
Locate the original order and create a revision of the order, so that you can edit the order.
Depending on the rules setup for revisions, you can make changes to the order even after you
create the revision. You can make changes such as cancelling existing lines, adding new
order lines, and editing configurations.
The rules determine whether changes can be made. For example, if a customer orders an
item with a quantity of 10, and 7 of the 10 already were shipped, then you can’t make
changes to the line with the shipped quantity of 7. You can cancel only the line with the
backordered quantity of 3.
After you make changes to the order, you submit it. These tasks follow: pick release, ship
confirm, invoice/bill.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 9 - 6

Demonstration: 9-1

Creating and Submitting an Order Revision

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Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 9 - 7

Summary

In this lesson, you should have learned how to:

• Explain change management
• Explain compensation

Oracle Internal & Oracle Academy Use Only

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 9 - 8

 10
Global Order Promising:
Introduction and Overview

Oracle Internal & Oracle Academy Use Only

Part 4: Order Promising
Order Management and Fulfillment Cloud
Implementation

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

 Order-to-Cash Flow
Global Order Promising: Introduction and Overview

Optimize Orchestrate
Sourcing & Fulfillment
Manage, View Schedule Pick & Ship
& Enrich
Order

Oracle Internal & Oracle Academy Use Only

Global
Order
Order Inventory Finance
Management
Create, Promising Bill & Collect
Configure &
Price Order

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

This diagram presents the overall order-to-cash flow. An order is created or captured in
Oracle Order Management Cloud. The order is priced using Oracle Fusion Pricing. Products
can be configured using Oracle Fusion Configurator. The order is enriched to include useful
fulfillment information. 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 in the case of models and kits. Order Management Cloud
orchestrates order fulfillment, which includes but isn’t limited to reserving material, sending
requests to ship material, sending requests to generate invoices, and billing customers.
Oracle Fusion Shipping ships the product to the customer. Oracle Financials Cloud sends the
invoices to the customer.
You can use Order Management Cloud to fulfill standard products, services, configurations,
models, and kits. You can also use various fulfillment methods, such as drop shipment, back-
to-back, and internal transfers.
This diagram focuses on order scheduling and promising.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 10 - 2

 Objectives

After completing this lesson, you should be able to explain the

key functionalities of Global Order Promising.

Oracle Internal & Oracle Academy Use Only

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 10 - 3

 Topics

• Architecture and Components

• Key Functionality

Oracle Internal & Oracle Academy Use Only

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 10 - 4

 Topics

• Architecture and Components

• Key Functionality

Oracle Internal & Oracle Academy Use Only

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

This section discusses the architecture and components of Oracle Supply Chain
Planning Cloud and Global Order Promising.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 10 - 5

 Functional Architecture: Oracle Supply Chain Planning
Cloud and Global Order Promising

Oracle Internal & Oracle Academy Use Only

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

Global Order Promising is part of the overall Oracle Supply Chain Planning Cloud products,
which is built on a common technology foundation.
This graphic depicts the architecture of Oracle Supply Chain Planning Cloud, including the
Value Chain Planning applications such as Global Order Promising. The graphic also shows
the different models and common technology foundation, as well as the Fusion ERP
application families that the Value Chain Planning applications collect data from.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 10 - 6

 Functional Integration Touchpoints

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Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

Global Order Promising promises orders that are received from Order Management Cloud. To
receive orders, Global Order Promising uses supply chain network data and supplies that are
collected into Oracle Supply Chain Planning Cloud by using collections programs. Order
promising is based on rules that are created within Supply Chain Planning Cloud.
This graphic depicts the information flow from different sources (such as eCommerce, stores,
mobile apps, and call centers) to Order Management and then to Oracle Supply Chain
Planning Cloud. Information is collected from suppliers, distribution centers, plants, and
carriers.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 10 - 7

 Functional Components

Oracle Internal & Oracle Academy Use Only

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

Through data collections, you collect data from various other Oracle Cloud modules into
Oracle Supply Chain Planning Cloud and Global Order Promising. Global Order Promising
collects the following types of data:
• Static: Such as structures, routings, suppliers, and transit times
• Dynamic: On-hand and purchase orders also are collected from various other Cloud
modules.
All data is collected into the Supply Chain Planning data repository. The Supply Chain
Planning data repository also stores setups made within Global Order Promising, such as
sourcing, available-to-promise, and supply allocation rules.
This graphic depicts the functional components of Global Order Promising: Data collections,
data repository, order promising setups, order promising engine, and the user interface.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 10 - 8

The Global Order Promising engine itself is an in-memory engine that supports different
promising functionality. Because it is an in-memory engine, any data updates that are made in
other Cloud modules require data to be collected into the Supply Chain Planning Data
Repository, and then reflected into the Global Order Promising engine, either through real-
time updates (for supply data) or through Global Order Promising engine restarts. You interact
with the Global Order Promising engine through a user interface in which you can create
what-if simulations, view availability options, and edit demands to improve order promising
results in bulk.

Oracle Internal & Oracle Academy Use Only

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 10 - 9

 Topics

• Architecture and Components

• Key Functionality

Oracle Internal & Oracle Academy Use Only

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

This section discusses key functionality provided by Oracle Supply Chain Planning
Cloud and Global Order Promising.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 10 - 10

 Key Functionality

• Multiple promising modes

• Hierarchical fulfillment source determination
• Scheduling and availability check
• Alternative availability options
• Capable to promise
• Profitable to promise

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• Split fulfillment
• Substitution of end items
• Configure-to-order promising
• Support for advanced fulfillment techniques
• Real-time supply update
• Work area to manage order backlog

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

Global Order Promising supports the following key functionality.

Global Order Promising enables you to promise orders in different modes based on:
• Infinite availability
• Lead times
• Supply availability
Through generic sourcing functionality available in Supply Chain Planning Cloud, you can set
up complex rules to determine sourcing hierarchically.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 10 - 11

Global Order Promising can split the fulfillment of a line to promise:
• From different sources of supply
• Across different substitute items
• On different dates incrementally
Global Order Promising supports:
• Configured item promising
• Advanced fulfillment techniques, such as drop shipment, back to back, or internal
material transfers
• Real-time supply updates, where supply within the Global Order Promising engine can
be updated in real time without restarting the Global Order Promising engine
Use the new, stand-alone Global Order Promising work area to view order promising
analytics, manage demand backlog, and create order inquiries.

Oracle Internal & Oracle Academy Use Only

You can promise orders either automatically by using Schedule or interactively by using
Check Availability. Global Order Promising automatically generates multiple availability
options based on different fulfillment sources, substitute items, or by considering splits.
You can use advanced promising features, such as:
• Capable to promise: Promises orders by looking at component and resource
availability. Used in cases of insufficient availability of the requested item.
• Profitable to promise: Promises orders from sources that have the lowest cost.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 10 - 12

 Advanced Fulfillment Techniques

Drop
Back-to-Back Shipments
Internal Material Orders
Transfers

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Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

Global Order Promising supports advanced fulfillment techniques, specifically:

• Drop Shipment: Fulfillment mode where orders are shipped directly from a supplier to a
customer location
• Back to Back: Fulfillment mode where orders are demands in which the supply is hard
pegged to the demand. Global Order Promising suggests the supply that must be
created for a demand when it promises an order. It then respects the supply created and
reserved against the demand, ensuring that this supply cannot be used to promise any
other demand.
• Internal Material Transfer: Fulfillment mode in which material is moved within the
enterprise. Global Order Promising can promise internal material transfer orders and
can also prioritize supply across internal and external orders.

The graphic is explained in the above notes.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 10 - 13

 Promising of Configure-to-Order Items

• Promise ATO and PTO

configurations
• Consider lead times and
availability at multiple levels
• Respect option-specific
sourcing

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• Consider availability of
existing matching
configuration

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

Global Order Promising promises configure-to-order items, such as:

• Assemble to order (ATO)
• Pick to order (PTO)
• Hybrids (ATOs within PTOs)
When Global Order Promising promises these items, it considers lead times and availability at
multiple levels of the model hierarchy to determine the best possible promise date.
Global Order Promising also supports option-specific sourcing rules. You can configure these
rules to exclude some sources from fulfilling orders based on the option item that you select
within the requested model.
When promising ATO configurations, Global Order Promising also considers supply of
existing, similar configurations that may have any supply already created (and available for
the current order).
The graphic at the top shows lead times at different levels of the model hierarchy.
The graphic below it shows two models with their associated options. The graphic shows the
two different warehouses from which the options are sourced.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 10 - 14

 Work Area for Managing Order Backlog

• View overall and detailed

order promising metrics.
• Identify late demands
easily.
• Mass-edit demands and
simulate promising.

Oracle Internal & Oracle Academy Use Only

• Reschedule demands.

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

Global Order Promising also has a stand-alone work area that you can use to view overall
and detailed order promising metrics, easily identify late demands, and then drill down to
these demands. You can change the demand’s input attributes and create what-if simulations
to evaluate better ways of promising the order. You can reschedule demands from within the
work area. Updated schedule information is automatically synced up with the Order
Management Cloud.

This screenshot depicts the Global Order Promising Overview page.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 10 - 15

 Summary

In this lesson, you should have learned how to explain the key
functionalities of Global Order Promising.

Oracle Internal & Oracle Academy Use Only

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 10 - 16

 11
Order Promising Rules:
Sourcing Rules and ATP Rules

Oracle Internal & Oracle Academy Use Only

Part 4: Order Promising
Order Management and Fulfillment Cloud
Implementation

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

 Order-to-Cash Flow
Rules That Govern Order Promising Behavior

Optimize Orchestrate
Sourcing & Fulfillment
Manage, View Schedule Pick & Ship
& Enrich
Order

Oracle Internal & Oracle Academy Use Only

Global
Order
Order Inventory Finance
Create, Management
Promising Bill & Collect
Configure &
Price Order

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

This diagram presents the overall order-to-cash flow. An order is created or captured in
Oracle Order Management Cloud. The order is priced using Oracle Fusion Pricing. Products
can be configured using Oracle Fusion Configurator. The order is enriched to include useful
fulfillment information. 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 in the case of models and kits. Order Management Cloud
orchestrates order fulfillment, which includes but isn’t limited to reserving material, sending
requests to ship material, sending requests to generate invoices, and billing customers.
Oracle Fusion Shipping ships the product to the customer. Oracle Financials Cloud sends the
invoices to the customer.
You can use Order Management Cloud to fulfill standard products, services, configurations,
models, and kits. You can also use various fulfillment methods, such as drop shipment, back-
to-back, and internal transfers.
This diagram focuses on order scheduling and promising.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 11 - 2

 Objectives

After completing this lesson, you should be able to:

• Describe how ATP and sourcing rules impact order promising
• Explain how to set up available-to-promise (ATP) and
sourcing rules

Oracle Internal & Oracle Academy Use Only

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 11 - 3

 Topics

• Sourcing Rules
• ATP Rules

Oracle Internal & Oracle Academy Use Only

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 11 - 4

 Topics

• Sourcing Rules
• ATP Rules

Oracle Internal & Oracle Academy Use Only

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

This section discusses sourcing rules. Sourcing rules specify how to respond to customer
demand by:
• Selecting the best organization from which to make supply available.
• Making supply available at a given organization.
Sourcing assignments contain such information as item, region assignment, as well as
information on the organization to which a local sourcing rule belongs. This information is
used while the application ascertains the best supply source for an order.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 11 - 5

 Sourcing Rules

At an organization, where
can I get additional supply?
(Local Sourcing Rule)

Which organizations or
suppliers can I ship from to
fulfill demand? (Global
Sourcing Rule)

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Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

Sourcing rules help in creating the supply chain network that Global Order Promising uses to
promise orders.

Address questions such as:

• At an organization, where can I get additional supply? (Local Sourcing Rule)
• Which organizations or suppliers can I ship from to fulfill demand? (Global Sourcing
Rule)

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 11 - 6

 Global and Local Sourcing Rules

Global Sourcing Rules Local Sourcing Rules

Define orgs or suppliers from where an Define sources of supply for a specific
end demand is fulfilled organization

Are not associated with an org Are specified at an org

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Can contain only transfer or buy (drop Contain transfer, buy, and make
ship) sources sources

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

Sourcing Rules
• Global sourcing rules: Define from where orders will be fulfilled or shipped. Global
sourcing rules aren’t defined at any specific organization. They contain only transfer or
buy sources. The buy sources correspond to drop ship suppliers.
• Local sourcing rules: Define how additional supply can be created at an internal
organization. Local sourcing rules are created at an org, by definition. They contain
transfer, buy, and make sources.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 11 - 7

 Global Sourcing Rules and Assignment
All tablets can
Consider the following business scenario: be shipped from
D1, D2, and
a supplier.

Item Category or Item Fulfillment Sources

Tablets D1, D2, Allied Mfg/Site1

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Latest Tablet D1, D2

Latest Tablet to Big Customer D1

But the Latest Tablet can be
shipped only from D1 and
D2.

An order for Latest Tablet to

Big Customer can be shipped
only from D1.

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

Consider a scenario where all tablets within the item category Tablets can be fulfilled from
three sources: internal organizations D1, D2, or an internal supplier, Allied Manufacturing.
However, the Latest Tablet can be shipped only from D1 and D2 and can be shipped to Big
Customer only from D1. This scenario can be modeled through hierarchical sourcing rules, as
described in the subsequent slides.
This table contains the following columns:
• Business data
• Fulfillment sources
The table contains the column headings: Item Category or Item, Fulfillment Sources
The first row contains Tablets in the Item Category or Item cell. The Fulfillment Sources cell
for this row contains D1, D2, Allied Mfg supplier and Site 1 supplier site.
The second row contains Latest Tablet in the Item Category or Item cell. The Fulfillment
Sources cell for this row contains D1, D2.
The third row contains Latest Tablet to Big Customer in the Item Category or Item cell. The
Fulfillment Sources cell for this row contains D1.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 11 - 8

 Creating Sourcing Rules

Create the following sourcing rules:

Sourcing Rule Source

TransferFromD1D2Allied Transfer From: D1

Transfer From: D2
Buy From: Allied Mfg/Site1

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TransferFromD1D2 Transfer From: D1
Transfer From: D2

TransferFromD1 Transfer From: D1

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

To model the business scenario, create three global sourcing rules, as shown in the table.
The table contains the following column headings: Sourcing Rule, Source
• The first row contains a source rule named TransferFromD1D2Allied. The source is
Transfer from: D1, Transfer from: D2, and Buy from: Allied Mfg/Site1.
• The second row contains a source rule named TransferFromD1D2. The source is
Transfer from: D1 and Transfer from: D2.
• The third row contains a source rule named TransferFromD1. The source is Transfer
from: D1.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 11 - 9

 Assigning Sourcing Rules

Assign the sourcing rules as follows at different assignment levels

within the same assignment set

Sourcing Rule Assignment Level Assigned To

TransferFromD1D2Allied Item Category Tablets

TransferFromD1D2 Item New Tablet

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TransferFromD1 Item and Customer New Tablet and Big
Customer

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

Then, assign the three sourcing rules to the category, item, and item-customer levels, as
shown in the table. These rules allow you to model the business scenario that was described
earlier.
The table contains the following column headings: Sourcing Rule, Assignment Level,
Assigned To
• The first row contains a source rule named TransferFromD1D2Allied. The assignment
level is Item Category, and the assigned-to value is Tablets.
• The second row contains a source rule named TransferFromD1D2. The assignment
level is Item, and the assigned-to value is New Tablet.
• The third row contains a source rule named TransferFromD1. The assignment level is
Item and Customer, and the assigned-to value is New Tablet and Big Customer.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 11 - 10

 Supported Assignment Levels for Global Sourcing

Assignment Level

Global Ensure that you have at

Region
least one sourcing rule
Demand Class
assigned at the global level
Customer

Customer/Site

Category Global Order Promising

considers the sourcing rule

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Category-Region

Item
assigned at the most
Category-Demand Class
granular level
Category-Customer

Category-Customer/Site

Item-Region

Item-Demand Class

Item-Customer

Item-Customer/Site

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

You can assign sourcing rules at multiple hierarchical levels, as shown. Global Order Promising
considers the sourcing rule associated with the most granular assignment level and fulfills orders
only from sources corresponding to this sourcing rule. Supported levels:
• Global
• Region
• Demand Class
• Customer
• Customer/Site
• Category
• Category-Region
• Item
• Category-Demand Class
• Category-Customer
• Category-Customer/Site
• Item-Region
• Item-Demand Class
• Item-Customer
• Item-Customer/Site

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 11 - 11

 Sourcing Rule and Assignment Setup: Example

Example: Global
sourcing rule

Assigning sourcing rules at

multiple levels in an

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assignment set

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

The screenshots in the slide shows how you can assign global sourcing rules at different
assignment levels within the same assignment set. In this case, the global sourcing rule is
called Fulfill_from_D1_D2 (fulfill from D1 and then D2). The rule designates where to source
the tables and in what sequence. The Edit Assignment Set window shows that
Fulfill_from_D1_D2 is assigned to the Item assignment level.
Navigation
1. In the Navigator, select Order Promising.
2. On the Overview page, click Tasks and then select Manage Sourcing Rules.
3. On the Manage Sourcing Rules page, search for a rule.
4. Click the Edit icon.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 11 - 12

 Local Sourcing Rules

• Name, effectivity date range

• At organization: D1
• Key Details:

Source Type Source Rank

Transfer From M1 1

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Make At D1 2

Buy From Component Supp/Site1 3

Make At is applicable if you can

manufacture at an organization

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

You specify local sourcing rules and indicate supply sources at an organization. You must
assign local sourcing rules to items and organizations through the assignment set, just as with
global sourcing rules.
This table contains the following column headings: Source Type, Source, Rank
• The first row contains a source type of Transfer From, a source of M1, and a rank of 1.
• The second row contains a source type of Make At, a source of D1, and a rank of 2.
Make At applies if you can manufacture the item at an organization.
• The third row contains a source type of Buy From, a source of Component Supp/Site1,
and a rank of 3.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 11 - 13

 Demonstration: 11-1

Creating and Assigning Oracle Fusion Global Order Promising

Rules

Oracle Internal & Oracle Academy Use Only

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 11 - 14

 Topics

• Sourcing Rules
• ATP Rules

Oracle Internal & Oracle Academy Use Only

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

This section discusses available-to-promise (ATP) rules.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 11 - 15

 ATP Rules

Define how Global Order Promising searches for supply at an

organization

Oracle Internal & Oracle Academy Use Only

Should I promise based on
actual supply or on lead Should I consider
times, or should I assume component and resource
infinite availability? availability for an assembly?

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

Available-to-promise (ATP) rules define how Global Order Promising searches for supply of
an item at an organization. Global Order Promising enables you to promise orders in different
modes:
• By assuming infinite availability for your items that are not constrained
• Based on lead times for items that have a very reliable supply chain
• By looking at detailed supply availability

Questions to consider:
• Should I promise based on actual supply or on lead times, or should I assume infinite
availability?
• Should I consider component and resource availability for an assembly?

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 11 - 16

 Promising Modes

You can use any of the following promising modes for an ATP
rule:
• Supply chain availability search
• Lead time-based
• Infinite availability-based

Oracle Internal & Oracle Academy Use Only

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

These modes are detailed in the next slide.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 11 - 17

 Supported Promising Modes

Promising Mode Details Usage Supports

Infinite availability- Supply assumed to Use for low value, Calendars

based be infinite unconstrained items

Lead time-based Supply always Use for items with reliable Calendars and
available after a lead lead times lead times
time

Oracle Internal & Oracle Academy Use Only

Supply chain Search for actual Use for fast moving, Calendars, lead
availability search supplies critical items where exact times, detailed
supply tracking is supply and
important demand
matching,
optimal
fulfillment

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

The different promising modes consider different constraints while promising an order and are
used for different business scenarios, as shown in this table.
1. Columns: Promising Mode, Details, Usage, Supports
2. Rows: Infinite availability-based, Lead time-based, Supply chain availability search

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 11 - 18

 Supply Chain Availability Search Mode

Enabling CTP, PTP, and

allocation

Selection of supply and

demand

Supply is considered

Oracle Internal & Oracle Academy Use Only

infinite after this fence

ATP time fence

configures advanced
supply search behavior

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

The following options are available for supply chain availability searches:
• Select “Search components and resources” to enable capable-to-promise (CTP). You
can also enable a profitable-to-promise search and elect to respect allocation
constraints.
• You can specify the supply types that Global Order Promising must consider when
searching for supply at a specific location.
• You can specify the fence beyond which supply is considered to be infinite.
• You can enable Global Order Promising to consider past due supply and demand
(supply and demand whose due dates are earlier than the current system date).
• You can specify the ATP time fence, which affects the way Global Order Promising
searches for supply. For orders with requested dates within the fence, Global Order
Promising searches preferentially for ATP supply. Beyond this fence, Global Order
Promising searches preferentially for supply through CTP.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 11 - 19

 ATP Rule Assignment

Assign ATP rule at different

hierarchical levels

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Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

Items must be associated with an ATP rule to be enabled for order promising. You must
ensure that all items that are required for promising are assigned to at least one ATP rule
through a hierarchical level (items could belong to a category that is assigned to an ATP rule,
for example).
This screenshot shows that you assign the ATP rule in the Assignment Basis column on the
ATP Rule Assignment tab.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 11 - 20

 Practices: Overview

• 11-1: Creating and Assigning Sourcing Rules and ATP Rules

in an Assignment Set
• 11-2: Promising Orders and Viewing Promising Rules That
Were Used by Order Promising

Oracle Internal & Oracle Academy Use Only

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 11 - 21

 Summary

In this lesson, you should have learned how to:

• Explain how to set up available-to-promise (ATP) and
sourcing rules
• Promising Orders and Viewing Promising Rules That Were
Used by Order Promising

Oracle Internal & Oracle Academy Use Only

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 11 - 22

 12
Key Order Promising
Functionality

Oracle Internal & Oracle Academy Use Only

Part 4: Order Promising
Order Management and Fulfillment Cloud
Implementation

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

 Order-to-Cash Flow
Key Global Order Promising Functionality

Optimize Orchestrate
Sourcing & Fulfillment
Manage, View Schedule Pick & Ship
& Enrich
Order

Oracle Internal & Oracle Academy Use Only

Global
Order
Order Inventory Finance
Create, Management
Promising Bill & Collect
Configure &
Price Order

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

This diagram presents the overall order-to-cash flow. An order is created or captured in
Oracle Order Management Cloud. The order is priced using Oracle Fusion Pricing. Products
can be configured using Oracle Fusion Configurator. The order is enriched to include useful
fulfillment information. 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 in the case of models and kits. Order Management Cloud
orchestrates order fulfillment, which includes but isn’t limited to reserving material, sending
requests to ship material, sending requests to generate invoices, and billing customers.
Oracle Fusion Shipping ships the product to the customer. Oracle Financials Cloud sends the
invoices to the customer.
You can use Order Management Cloud to fulfill standard products, services, configurations,
models, and kits. You can also use various fulfillment methods, such as drop shipment, back-
to-back, and internal transfers.
This diagram focuses on order scheduling and promising.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 12 - 2

 Objectives

After completing this lesson, you should be able to:

• Promise orders optimally and interactively by using the Check
Availability interface
• Explain Global Order Promising results through key reports
and pages
• Validate key order promising functionality (splits, substitution,

Oracle Internal & Oracle Academy Use Only

batch promising, allocation)

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 12 - 3

 Topics

• Order Promising Workflow and Availability Check

• Capable-to-Promise (CTP)
• Profitable-to-Promise (PTP)
• Fulfillment Line Splits
• End Item Substitution
• Support Advanced Fulfillment Techniques

Oracle Internal & Oracle Academy Use Only

• Configure-to-Order Promising
• Order Promising Work Area to Manage Order Backlog

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 12 - 4

 Topics

• Order Promising Workflow and Availability Check

• Capable-to-Promise (CTP)
• Profitable-to-Promise (PTP)
• Fulfillment Line Splits
• End Item Substitution
• Support Advanced Fulfillment Techniques

Oracle Internal & Oracle Academy Use Only

• Configure-to-Order Promising
• Order Promising Work Area to Manage Order Backlog

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

This section discusses the order promising workflow and how you can check availability.

Global Order Promising enables you to promise orders in different modes: either by assuming
infinite availability for your items that are not constrained, or based on lead times for items
that have a very reliable supply chain, or by looking at detailed supply availability. Through
generic sourcing functionality available in planning, you can set up rules to determine
sourcing hierarchically.
You can promise orders either automatically (“Schedule”) or interactively (“Check
Availability”). Global Order Promising automatically generates multiple availability options
based on different fulfillment sources or substitute items, or by considering splits.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 12 - 5

 Order Promising Workflow

Typical order promising workflow:

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Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

A typical order promising workflow is shown in the graphic in the slide:

1. Select orders to be promised in Order Management.
2. Schedule orders from within Order Management. Global Order Promising is called and
orders are scheduled automatically.
3. Check availability within Order Management:
- View results and availability options within Global Order Promising.
- View rules and reports to understanding promising results.
- Do what-if simulations to improve promising results.
- Schedule orders when results are acceptable.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 12 - 6

After the decomposition and orchestration processes create fulfilment lines in Order
Management, Global Order Promising provides the capability to schedule them. The terms
“scheduling” and “promising a line” are equivalent and are used interchangeably. Scheduling
a line implies that the line’s demand was matched with the currently available supply to
determine a date when the line can be delivered to the customer.
Scheduling can be done either directly (without looking at possible supply options), or on the
Check Availability page. If you use the Check Availability page, then you can view potential
scheduling results and alternative ways of scheduling the order. Using this information, you
can schedule the line by selecting the best possible result.

Oracle Internal & Oracle Academy Use Only

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 12 - 7

 Check Availability: Key Features

• Check availability for multiple demands together.

• Check availability for already scheduled lines.
• Update input attributes and refresh results to view updated
promising results.
• Update relative priorities of lines and view promising results.
• Use analytics to determine whether current promising results

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are better, especially when promising a batch of lines.
• All actions within Check Availability are in simulation mode.
They don’t affect Global Order Promising until demands are
scheduled using the Schedule button.

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

You might want to improve the scheduling results for lines that already were scheduled. In this
scenario, you can check the availability of already scheduled lines and understand the
possible results if you were to schedule the line now.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 12 - 8

 Check Availability
Default promising result

Multiple alternate availability

options for every demand You can select and schedule
using an alternate option.
This is when the action takes
effect.

Oracle Internal & Oracle Academy Use Only

Analytics help you identify
whether current promising
results are better or worse Item availability analytic
than before. provides a quick view into
supply at different sources.

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

This is a screenshot of the Check Availability page. Callouts show that you can view:
• Default promising results in the Fulfillment Lines region of the Global Order Promising
Check Availability page.
• Multiple availability options in the Availability Options region.
• Analytics to view information such as comparative promising results and supply at
different sources.
Navigation
1. In the Navigator, select Order Management.
2. Click Tasks and then select Manage Fulfillment Lines. Locate orders that need to be
promised.
3. Click the Check Availability button.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 12 - 9

 Check Availability

View default promising

results in the main table.

Editable fields allow you

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to update order inputs
View supply availability, and simulate promising.
allocation, and pegging
details.

View rules that influenced

promising results.

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

This is a screenshot of the Check Availability page. Callouts show where you can:
• Simulate promising
• View supply availability, allocation, and pegging details
• View rules that influence promising results

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 12 - 10

 Alternate Availability Options

• Alternate availability options are generated for:

– Different ship-from sources derived from the sourcing rule
– Different items that may have availability
– Split availability
• Option summary column provides a quick view into the key
difference between an option and the default result

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• More availability options are generated when you relax input
attributes on an order:
– Requested ship-from warehouse or supplier
– Requested shipping method
– Enable splits
– Enable substitution

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

The type of availability options that are generated depend on the input constraints on the
fulfillment line. If you don’t specify a ship-from warehouse, and if you select Enable Splits and
Enable Substitution Allowed (which is the least constrained case), then Global Order
Promising determines the best possible way of promising this line (look across all
warehouses, split by date, substitute, if required), and generates the default option. After this
option, Global Order Promising generates an option that represents the best possible
availability from each warehouse by splitting fulfillment and using substitute items.
If you enable more constraints, such as splits are not allowed and substitutions not allowed,
then the nature of the alternate options changes. In the most constrained case, when a ship-
from warehouse is specified and substitution and splits are not allowed, then Global Order
Promising generates options only from the specified ship-from warehouse, possibly by
considering different shipping methods that deliver the item to the customer site.
Options are sorted based on:
• Fulfillment delay associated with that option
• Cost
• Whether substitutes were used in the fulfillment

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 12 - 11

 Topics

• Order Promising Workflow and Availability Check

• Capable-to-Promise (CTP)
• Profitable-to-Promise (PTP)
• Fulfillment Line Splits
• End Item Substitution
• Support Advanced Fulfillment Techniques

Oracle Internal & Oracle Academy Use Only

• Configure-to-Order Promising
• Order Promising Work Area to Manage Order Backlog

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

This section discusses capable-to-promise order promising, which lets you promise orders by
looking at component and resource availability in case of insufficient availability of the
requested item in your shipping warehouse.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 12 - 12

 Capable-to-Promise

Ability to promise a fulfillment line by:

• Considering the supply for that item at other warehouses or
suppliers (Transfer CTP, Buy CTP)
• Considering the supply of the end item’s components and
consumed resources during manufacturing (Make CTP)
• Using Transfer and Buy CTP if insufficient supply is available

Oracle Internal & Oracle Academy Use Only

for the requested end item at the shipping warehouse
• Enabling Transfer and Buy CTP automatically when the
applicable ATP rule mode is “Supply chain availability search”
• Enabling Make CTP by selecting “Consider Components and
Resources” in the ATP Rule applicable to Items

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 12 - 13

 Topics

• Order Promising Workflow and Availability Check

• Capable-to-Promise (CTP)
• Profitable-to-Promise (PTP)
• Fulfillment Line Splits
• End Item Substitution
• Support Advanced Fulfillment Techniques

Oracle Internal & Oracle Academy Use Only

• Configure-to-Order Promising
• Order Promising Work Area to Manage Order Backlog

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

This section discusses profitable-to-promise order promising, which lets you promise orders
from shipping warehouses that have the lowest cost.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 12 - 14

 Profitable-to-Promise

Overrides preferred sources for the requested item to promise

from the least cost source
• Costs considered when evaluating promises are:
– Standard cost
– Resource cost (in case end item is to be manufactured)
– Component cost

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Note: Global Order Promising prioritizes promising an order
without delay.

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

In the profitable-to-promise mode, Global Order Promising overrides sourcing preferences to

respect the least cost‒based sources that it can promise from. Global Order Promising
considers the following costs when evaluating the most profitable method of promising an
order:
• Standard cost at internal organizations
• Standard cost at a supplier location
• Cost of internal transfers between organizations
• Cost of transit from supplier to internal organizations
• Cost of transit from ship-from location to customer site, by ship method
In the case of Make CTP, Global Order Promising considers the cost that is associated with
resource consumption (cost per unit of resource consumed) and the cost of components
required, to determine the most optimal location to source the promise.
Enable PTP by selecting Profitable-to-Promise on the ATP rule.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 12 - 15

 Demonstration: 12-1

Promising Multiple Orders Using Check Availability

Oracle Internal & Oracle Academy Use Only

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 12 - 16

 Topics

• Order Promising Workflow and Availability Check

• Capable-to-Promise (CTP)
• Profitable-to-Promise (PTP)
• Fulfillment Line Splits
• End Item Substitution
• Support Advanced Fulfillment Techniques

Oracle Internal & Oracle Academy Use Only

• Configure-to-Order Promising
• Order Promising Work Area to Manage Order Backlog

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

This section discusses the ability to enable Global Order Promising to split the fulfillment of a
line in order to promise on different dates incrementally. This way, you ensure that key orders
with hard dates are better managed through partial fulfillment.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 12 - 17

 Fulfillment Line Splits

Global Order Promising can automatically split a fulfillment line

into two or more lines to optimize promising results. Split
fulfillment lines can be across:
• Warehouses
• Substitute items
• Dates

Oracle Internal & Oracle Academy Use Only

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

In the date dimension, Global Order Promising generates only two splits:
• On the requested date
• On the date when the promise can be made
Enable fulfillment line splits by selecting Yes for Splits Allowable on the fulfillment line.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 12 - 18

 Topics

• Order Promising Workflow and Availability Check

• Capable-to-Promise (CTP)
• Profitable-to-Promise (PTP)
• Fulfillment Line Splits
• End Item Substitution
• Support Advanced Fulfillment Techniques

Oracle Internal & Oracle Academy Use Only

• Configure-to-Order Promising
• Order Promising Work Area to Manage Order Backlog

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

This section discusses end item substitution, which you can enable to promise from different
sources of supply, across different substitute items. This way, you ensure that key orders are
met using substitute items.
You can also define substitution specifically for individual customers, so you can better
manage order fulfillment for significant customers.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 12 - 19

 End Item Substitution

Global Order Promising considers the availability of an end item

substitute in the case of insufficient availability of the end item.
You must define end item substitutes and collect them into the
Order Orchestration data repository.
Supported features:
• Consideration of item substitute priority

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• Customer-specific substitution
• Generation of availability options based on substitutes
• Enabling or disabling of substitution using the “Allow
Substitutes” selection

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

Enable “Allow Substitutes” to allow substitute items to be considered.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 12 - 20

 Topics

• Order Promising Workflow and Availability Check

• Capable-to-Promise (CTP)
• Profitable-to-Promise (PTP)
• Fulfillment Line Splits
• End Item Substitution
• Support Advanced Fulfillment Techniques

Oracle Internal & Oracle Academy Use Only

• Configure-to-Order Promising
• Order Promising Work Area to Manage Order Backlog

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

This section discusses advanced fulfillment techniques, such as drop shipment, back to back,
and internal material transfers.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 12 - 21

 Support Advanced Fulfillment Techniques

Drop
Back-to-Back Shipments
Internal Material Orders
Transfers

Oracle Internal & Oracle Academy Use Only

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

Global Order Promising supports the following advanced fulfillment techniques:

• Internal material transfers
• Back-to-back orders
• Drop Shipments

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 12 - 22

 Support Advanced Fulfillment Techniques

Order promising through drop shipping:

• Promise orders using drop ship supplier sources.
• Consider supplier lead times, calendars, and capacity.
• Respect drop ship PO reservation against an order by default; relax
reservation manually to improve order promising.
Order promising for back-to-back orders:
• Promise orders for back-to-back items by using standard Global

Oracle Internal & Oracle Academy Use Only

Order Promising functionality.
• Release back-to-back supply recommendation based on Global
Order Promising supply pegging.
• Respect supply reservation for orders within Global Order
Promising.
Order promising for internal material transfers:
• Support promising of internal material transfers.
• Enable re-allocation of supply across internal and external orders.

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 12 - 23

 Topics

• Order Promising Workflow and Availability Check

• Capable-to-Promise (CTP)
• Profitable-to-Promise (PTP)
• Fulfillment Line Splits
• End Item Substitution
• Support Advanced Fulfillment Techniques

Oracle Internal & Oracle Academy Use Only

• Configure-to-Order Promising
• Order Promising Work Area to Manage Order Backlog

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

This section discusses configure-to-order promising, which lets you schedule fulfillment lines
that have configured items, including assemble-to-order, pick-to-order, and hybrid
configurations. The application also can consider supply sources from other organizations
while promising configured items.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 12 - 24

 CTO Promising

Order promising for configure-to-order

• Promise assemble-to-order (ATO), pick-to-order (PTO), and
hybrids (ATO within PTO).
• Consider model, option class, and option item lead times.
• Consider resource capacity and availability for manufactured
ATO items.

Oracle Internal & Oracle Academy Use Only

• Check existing availability of matching configurations, option
items and mandatory components.
• Consider option-specific and option class-specific sourcing
exclusions.
• Generate supply recommendations for configure-to-order
models to back.
• Support drop ship promising of CTO items

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 12 - 25

 Topics

• Order Promising Workflow and Availability Check

• Capable-to-Promise (CTP)
• Profitable-to-Promise (PTP)
• Fulfillment Line Splits
• End Item Substitution
• Support Advanced Fulfillment Techniques

Oracle Internal & Oracle Academy Use Only

• Configure-to-Order Promising
• Order Promising Work Area to Manage Order Backlog

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

This section discusses how to manage order backlog in the Order Promising work are. You
can use the Order Promising work area to view order promising analytics, manage demand
backlog, and create order inquiries. This work area provides visibility into:
• Order backlog details
• Key scheduling problem areas
• Order promising volume details
• Financial metrics to identify deviations
In addition, you can use this work area to repromise orders and publish updated schedule
information back to Order Management Cloud.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 12 - 26

 Global Order Promising Work Area

View summary and

detailed analytics for your
demand backlog.

Drill down into specific

demands. Do what-if
simulations to improve
results and reschedule

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orders.

Create inquiries.

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

The screenshot in the slide shows the Global Order Promising Overview work area. Here you
can:
• View summary and detailed analytics for your demand backlog
• Drill down into specific demands. Do what-if simulations to improve results and
reschedule orders
• Create inquiries

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 12 - 27

 Practice: 12-1

Repromising Multiple Orders Using Check Availability

Oracle Internal & Oracle Academy Use Only

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 12 - 28

 Summary

In this lesson, you should have learned how to:

• Promise orders optimally and interactively by using the Check
Availability interface
• Explain Global Order Promising results through key reports
and pages
• Validate key order promising functionality (splits, substitution,

Oracle Internal & Oracle Academy Use Only

batch promising, allocation)

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 12 - 29

Oracle Internal & Oracle Academy Use Only
 13
Data Collection and Global
Order Promising Administration

Oracle Internal & Oracle Academy Use Only

Part 4: Order Promising
Order Management and Fulfillment Cloud
Implementation

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

 Order-to-Cash Flow
Collections and Global Order Promising Administration

Optimize Orchestrate
Sourcing & Fulfillment
Manage, View Schedule Pick & Ship
& Enrich
Order

Oracle Internal & Oracle Academy Use Only

Order Global Order
Inventory Finance
Create, Management Promising
Bill & Collect
Configure &
Price Order

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

This diagram presents the overall order-to-cash flow. An order is created or captured in
Oracle Order Management Cloud. The order is priced using Oracle Fusion Pricing. Products
can be configured using Oracle Fusion Configurator. The order is enriched to include useful
fulfillment information. 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 in the case of models and kits. Order Management Cloud
orchestrates order fulfillment, which includes but isn’t limited to reserving material, sending
requests to ship material, sending requests to generate invoices, and billing customers.
Oracle Fusion Shipping ships the product to the customer. Oracle Financials Cloud sends the
invoices to the customer.
You can use Order Management Cloud to fulfill standard products, services, configurations,
models, and kits. You can also use various fulfillment methods, such as drop shipment, back-
to-back, and internal transfers.
This diagram focuses on order scheduling and promising.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 13 - 2

 Objectives

After completing this lesson, you should be able to:

• Perform Global Order Promising data refresh
• Restart the Global Order Promising Engine
• Perform real-time supply updates

Oracle Internal & Oracle Academy Use Only

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 13 - 3

 Topics

• Data Collections
• Global Order Promising Engine Restart
• Real-Time Supply Updates

Oracle Internal & Oracle Academy Use Only

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 13 - 4

 Topics

• Data Collections
• Global Order Promising Engine Restart
• Real-Time Supply Updates

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Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

This section discusses what data must be collected for Order Promising and how it’s
collected.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 13 - 5

 Data Collections for Global Order Promising

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Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

This diagram shows collections for a global single installation containing Oracle Fusion
Product Management, Oracle Fusion Trading Community Model, Order Management, as well
as execution systems implemented in tandem with Supply Chain Planning.
In this installation, collections is responsible for gathering data from diverse modules. This
data is loaded into the planning data repository for use by planning products, as well as for
order management purposes.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 13 - 6

 Collected Data

Collections Source Business Objects Collected

Oracle Fusion Purchasing, • Purchase orders and requisitions
Oracle Inventory Management, • Suppliers, approved supplier lists, units of
and Costing Cloud measure
• Transfer orders, shipping methods
• Subinventories, on hand, reservations
• Work order supplies, resources, work

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Oracle Manufacturing Cloud
definitions (routings), resource availability
Oracle Product Master Data • Items, item structures (bills of material), item
Management Cloud substitute relationships, organizations, catalogs
Oracle Fusion Cost • Item costs, currencies
Management, CRM, Order • Calendars
Management Cloud, and • Sales orders, Order Management reference
others objects

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

You can perform enterprise source collections for the following business objects:
• From Oracle Fusion Purchasing, Oracle Inventory Management and Costing Cloud
- Purchase orders
- Requisitions
- Suppliers
- Approved supplier lists
- UOM
- Transfer orders
- Shipping methods
- Subinventories
- On hand
- Reservations
• From Manufacturing:
- Work order supplies
- Resources
- Work definitions (routings)
- Resource availability

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 13 - 7

 • From Product Information Management:
- Items
- Item structures (bills of material)
- Item substitute relationships
- Organizations
- Catalogs
• From Oracle Fusion Cost Management, CRM, Order Management, and other Oracle
applications:
- Item costs
- Currencies
- Calendars
- Sales orders

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- Order Management reference objects

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 13 - 8

 Data Collections Using File-Based Import

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Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

This diagram shows that external business objects can be collected using file-based import.
The objects are imported into Oracle Universal Content Management and are then stored in
the Planning Data Repository.
The business objects that you can collect are listed in the next two slides.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 13 - 9

 Data for Global Order Promising Collected Through
File-Based Import
You can import the following business objects using flat files for a
source system:
• Customer-specific item relationships
• Item costs
• Demand classes
• Planning allocation rules and their assignments

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• ATP rules and their assignments
• Real-time supply update rules
• Sourcing rules and assignments
• Cross-reference mapping information
• Supplier capacity and approved supplier lists
• Planned order supplies

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 13 - 10

 Data for Order Management Collectible Through File-
Based Import
• Document categories
• Activity type
• FOB points
• Invoicing and accounting rules
• Shipment priority
• Payment method and payment terms

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• Receipt method
• Return reason
• Tax classifications
• Tax exemption reasons
• Sales credit types
• Freight terms

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Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 13 - 11

 Data Collection Configuration Summary
Configuration Scenario Setups
Global single Implementation of a global single 1. Use default settings in
installation: Single installation configuration that has the Manage Planning
enterprise source Product Information Source Systems page.
Management, Trading 2. Specify inventory
Community Model, Order organizations for
Management, and Supply Chain collecting data.
Planning 3. Start collections for
relevant business
objects.

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Collect Order Implementation of Order 1. Add external source
Management data from Management with external systems to collect via
external source source systems. Manage Planning
systems Source Systems page.
2. Import calendar,
organization parameter
data using files.
3. Import relevant data
files for performing
order management.

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

If the implementation footprint corresponds to a global single installation that has Product
Information Management, Trading Community Model, Order Management, and Supply Chain
Planning, then you can use the default settings in the Manage Planning Source Systems for
collection source and destination systems. You can perform data collections for specific
inventory organizations using the Collect Planning Data page.
If the implementation footprint is specific to carry out order management activities from
external source systems, then you must define external source systems in the Manage
Planning Source Systems page, upload calendar and organization parameters information
using file import, perform collections using the Collect Planning Data page, and import the
data files for order management.
The information in the table is explained in the notes above.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 13 - 12

 Data Collection Configuration Summary

Capability Scenario Setups

Cross-reference support Implementation of cross- 1. Enable business objects
referencing for select business for cross-reference in the
objects such as currencies, Manage Planning Data
units of measure, Order Collection Processes
Management reference objects page.
and so forth 2. Import cross-reference

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data file for select
business objects.
3. Review imported data in
the Plan Inputs page.
4. Collect the cross
referenced business
objects through Collect
Planning Data page or
through files.

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

If you want to support cross-referencing of select business objects such as currencies, units
of measure, and Order Management reference objects, then use the Manage Planning
Collection Data Processes page to enable the business objects that you want to cross-
reference.
You must import the file with cross-reference mapping information before you collect any of
the cross-referenced business objects using the Collect Planning Data page or file import.
You can view the imported cross-reference data using the Cross-Reference Relationships for
Collected Data page.
The information in the table is explained in the notes above.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 13 - 13

 Data Collection from Files: Uploading the File

(1) Navigate to Tools  File

Import and Export

(2) Select upload .zip

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bundle containing data files
in the specified file format

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Use the Load Planning Data from Files scheduled process to import files for select business
objects from internal or external source systems (for Order Management). This screenshot
depicts the Upload File dialog box that appears when you click Upload on the File Import and
Export page.
To import business objects using files:
1. Create an Oracle Universal Content Manager account.
2. Enter data in the macro-enabled Microsoft Excel (*.xlsm) files corresponding to the
business objects to import, and convert into comma separated (*.csv) files using the
macro tool provided in the *.xlsm file. Alternatively, populate the data directly in the *.csv
files using scripts or other tools.
3. Create a single ZIP file bundle containing all the files for upload in the current collection
cycle. ZIP only the files, not the parent folder that contains the files.
4. In the Navigator, select File Import and Export under Tools.
5. Provide the parameters for uploading your ZIP file. Select the file to import, and then
click Save and Close. This step uploads the ZIP file to the Universal Content Manager
server.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 13 - 14

 Data Collection from Files: Running the Scheduled
Process

(3) In the Planning Central

area, invoke the Load
Planning Data from Files

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task.

(4) Select the Zip file that you

uploaded to Universal Content
Manager in step (2) and
launch the automatically
invoked scheduled process.

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

To run the scheduled process:

1. In the Oracle Planning Central work area, click the Tasks panel tab and then select
Load Planning Data from Files.
2. In Data File, select the Zip file previously loaded to the Universal Content Manager
server.
3. Launch the scheduled process.
4. Monitor the status of the scheduled process request and review the progress from the
standard Scheduled Processes page.

This screenshot depicts the Load Planning Data from Files task and the dialog box that
appears when you select the task.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 13 - 15

 External Source System Setup

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Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

To import files from external source systems for Order Management, follow these setup steps:
1. Define item organizations in Product Information Management corresponding to the
organizations in the external source system.
2. On the Manage Planning Source Systems page, define the external source system.
3. Define calendar data using CSV files and import them.
4. Upload the organization parameters CSV file, mapping item organizations to external
source system and calendars. This step can be combined with step 3.
5. Begin collecting the data elements that are needed for Order Management using file
upload of CSV files.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 13 - 16

 Cross-Reference Data Collections Setup Detail

In the Planning Central

work area, invoke the

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cross-reference screen
through the Manage
Planning Data Collection
Processes task.

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

Perform value-to-value mapping from source systems into Order Management using cross-
referencing. You can use cross-referencing for simple data transformation (for example, map
“Kg” in your source system to “Kilogram” in your destination system).
You can cross-reference only the following collection business objects:
• Unit of measure
• Currency and currency conversion type
• Order Management reference objects
• Shipping methods, which includes:
- Carrier name
- Shipping service level
- Shipping mode of transport
To enable cross-referencing in collections, from the Planning Central work area, select the
Manage Planning Data Collection Processes task. This screenshot depicts this task in the
Plan Inputs list. Click the Tasks panel tab to see this list.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 13 - 17

 Cross-Reference Data Collections Setup Detail

Select source system

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Select check boxes to
enable cross-referencing

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

On the Manage Planning Data Collection Processes page, depicted in this screenshot, select
the relevant source system in the top half to see the enabled business objects in the lower
half of the page.
Make appropriate selections to enable cross-reference support for the available business
objects.
After you enable cross-referencing, perform collections for cross-reference mapping
information:
1. Fill in the *.xlsm file for cross-reference mapping
(CrossReferenceDataImportTemplate.xlsm) with source and target values for
any or all of the supported business objects, and generate the associated
CrossReferenceDataImportTemplate.csv file.
2. Upload the CrossReferenceDataImportTemplate.csv file to the planning data
repository. Upload this file before you collect any business object for which cross-
referencing is supported. This applies to internal collections or those from an external
source system.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 13 - 18

 Viewing the Cross-Reference Collected Data Setup
Detail

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View collected data and
cross-reference data using
the Plan Inputs work area
under Supply Chain
Planning.

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

After collection is complete, view the collected cross-reference mapping information by

selecting Plan Inputs from the Navigator. This screenshot depicts the Navigator and point to
Plan Inputs under Supply Chain Planning.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 13 - 19

 Viewing the Cross-Reference Collected Data Setup
Detail

Select the Cross-Reference

Relationships for Collected
Data task to view cross-

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reference information.

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Click the Tasks panel tab, and then select the Cross-Reference Relationships for Collected
Data task. This screenshot depicts the list of Plan Inputs with an arrow pointing to the Cross-
Reference Relationships for Collected Data task

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 13 - 20

 Viewing the Cross-Reference Collected Data Setup
Detail View cross-reference data
that was collected. You can’t
make updates here.

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Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

On the Cross-Reference Relationships for Collected Data page, depicted in the screenshot,
provide search criteria to display relevant cross-reference mapping information.
This page is available for viewing only. You can’t make changes to collected data.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 13 - 21

 Topics

• Data Collections
• Global Order Promising Engine Restart
• Real-Time Supply Updates

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Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

This section discusses how to restart the Global Order Promising engine to refresh
data.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 13 - 22

 Administration: Restarting the Global Order Promising
Engine
• Use the scheduled
process “Refresh and
Start Order Promising
Server” to restart the
Global Order Promising
Schedule refreshes with
engine and refresh its required frequency.
data.

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• You can select specific
Select entities to be
entities to refresh. refreshed within Order
• If you want to refresh Promising.

data in Global Order

Promising, then it must
already be collected.
• Global Order Promising
continues to promise
orders during the refresh.

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

Automation improvements made to Global Order Promising enable you to refresh the Global
Order Promising engine with the latest supply chain data and restart it automatically through a
scheduled process, as shown in this screenshot.
Global Order Promising continues to promise orders during the refresh through its 24-by-7
architecture.
Navigation
1. In the Navigator, select Scheduled Processes under Tools.
2. On the Scheduled Processes page, click the Schedule New Process button.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 13 - 23

 Topics

• Data Collections
• Global Order Promising Engine Restart
• Real-Time Supply Updates

Oracle Internal & Oracle Academy Use Only

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

This section discusses how to update information about supply without having to restart
the Global Order Promising engine.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 13 - 24

 Administration: Real-Time Supply Update

• You can synchronize supply Supplies are updated

within Inventory,
updates within Cloud ERP into Manufacturing, and
Procurement
Global Order Promising without
restarting the engine.
• Enable items relevant for real-time Collect latest Supply

updates through the Manage Real-

Time Supply Update Rules task.

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• Run collections frequently for supply Global Order Promising
Engine is updated with
data. latest supply

• Schedule the Start Real Time

Supply Update scheduled process
Updated supply is used
to run frequently. for new order
promising transactions

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

The real-time supply update capability reflects changes to supply into Order Promising
without requiring a Global Order Promising engine restart. Global Order Promising supports
changes to multiple supply types, such as: On hand, purchase orders, transfer orders. It‘s
sufficient to simply collect the latest supply and then reflect the latest supply within Global
Order Promising using the real-time supply update capability. Changes made to supply never
impact the promising of already scheduled demands. Updated supply only impacts the
promising for new demands.

The graphic depicts the following flow:

1. Supplies are updated within Inventory, Manufacturing, and Procurement

2. Collect latest Supply
3. Global Order Promising Engine is updated with latest supply
4. Updated supply is used for new order promising transactions

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 13 - 25

 Summary

In this lesson, you should have learned how to:

• Perform Global Order Promising data refresh
• Restart the Global Order Promising Engine
• Perform real-time supply updates

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Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 13 - 26

 14
Order Import

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Part 5: Order Import and Transformation
Order Management and Fulfillment Cloud
Implementation

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 Order-to-Cash Flow
Import

Optimize Orchestrate
Sourcing & Fulfillment
Manage, View, Schedule Pick, Ship
Enrich Order

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Global
Order
Order Inventory Finance
Create, Management
Promising Bill, Collect
Configure,
Price Order

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

This diagram presents the overall order-to-cash flow. An order is created or captured in
Oracle Order Management Cloud. The order is priced using Oracle Fusion Pricing. Products
can be configured using Oracle Fusion Configurator. The order is enriched to include useful
fulfillment information. 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 in the case of models and kits. Order Management Cloud
orchestrates order fulfillment, which includes but isn’t limited to reserving material, sending
requests to ship material, sending requests to generate invoices, and billing customers.
Oracle Fusion Shipping ships the product to the customer. Oracle Financials Cloud sends the
invoices to the customer.
You can use Order Management Cloud to fulfill standard products, services, configurations,
models, and kits. You can also use various fulfillment methods, such as drop shipment, back-
to-back, and internal transfers.
This diagram focuses on order creation and submission.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 14 - 2

 Objectives

After completing this lesson, you should be able to:

• Explain some of the special considerations for coverage and
subscription lines
• Explain direct web service integration
• Explain file-based import
• Explain business-to-business messaging

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Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 14 - 3

 Topics

• Overview of Order Import

• Direct Web Service Integration
• File-Based Import
• Business-to-Business Messaging

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Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

Now that you understand how standard and configurable item orders are ordered and fulfilled,
we will now focus on how orders originate from channels.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 14 - 4

 Topics

• Overview of Order Import

– Importing Orders
– Additional Considerations for Coverage and Subscription Lines
• Direct Web Service Integration
• File-Based Import
• Business-to-Business Messaging

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Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

This topic discusses order import and additional factors to consider when you import
coverage and subscription lines.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 14 - 5

 Order-to-Cash Data Flow

Import

Customer
Data

Transfor-
Transfor-

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mation
mation

Product
Data

Cross-
reference Data
Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

The following slides discuss:

Import: Types and flow
Transformation: A sales order is converted through rules that you customize, so that the
transformed order is suitable for the fulfillment process. All sales orders are transformed,
whether they are created using file-based import, import web service, or the Create Order
page in Order Management.
Key to the Diagram
A. External order capture systems: The systems where orders originate
B. Fulfillment systems: The systems where inventory is tracked, items scheduled,
reserved, received, and shipped, and where invoices are generated. Fulfillment activities
are not limited to the ones listed here. There may be one or more external fulfillment
systems and one Oracle ERP Cloud fulfillment system.
- External
- Internal
- Oracle Inventory and Cost Management Cloud
- Oracle Financials Cloud

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 14 - 6

 C. Order Management and Planning Data Repository: Order Management processes
use data in the repository to cross-reference and validate data. Global Order Promising
Cloud uses supply and demand data refreshed into the order promising engine from the
repository when determining availability. The repository is populated by Order
Management Cloud and Global Order Promising Cloud data collection processes.
D. Oracle Fusion Product Model: Order Management processes use data in the Product
Model to determine the product data for orders, provide cross-system product cross-
referencing, and provide product structure decomposition rules. (Broader capability for
product information management isn’t needed.)
E. Oracle Fusion Trading Community Model: Order Management processes use data in
the Trading Community Model to determine the customer data for transformed orders
and provide cross-system customer data cross-referencing. (Broader capability for
customer data management isn’t needed.)

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F. Oracle Business Rules (Middleware): The middleware tool that is used to define
business rules that are used during decomposition and orchestration. The rules that are
defined for decomposition are stored in the middleware layer.
G. Oracle Order Management Cloud components:
- Order import: Receives single or bulk sales orders from channels and uses
defined product transformation rules to transform a sales order into an transformed
order.
- Assign and launch: Fulfillment lines are then grouped and assigned
- Business events: Business events are raised during the fulfillment process at
user-configured trigger points.
- Order entry: Order entry user interface where users can create and submit orders
- Pricing: Module where you can define and manage prices for products
- Configurator: Module where you can define and manage the product
configurations
- Orchestration: Automatically sequences the fulfillment steps for processing an
order. Calls task layer services to carry out the steps of the orchestration process.
- Task Layer Services: Execute as steps in user-defined fulfillment process
sequences. These services send information to downstream fulfillment systems
and interpret the responses and updates from those systems. For example, a ship
order process calls the task layer service Create Shipment request to send a
shipment request to the shipping system.
- External Interface Layer: Manages the communication between Order
Management and external/internal fulfillment systems. Its primary functions are
routing the fulfillment request and transforming the data.
H. Global Order Promising Cloud: Used automatically by an orchestration process to
schedule the best fulfillment options for a fulfillment line. Used manually by a user to
determine and choose availability options when manually managing an order.
I. Order Management Work Area: Used by a user, such as an order manager, to monitor
order lines

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 14 - 7

 Importing Orders

You can import any kind of order that was created in a channel
system using the following methods:
• Direct web service integration
• File-based import
• Application Development Framework (ADF) web service
• Business-to-business messaging or Electronic Data

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Interchange (EDI) Messaging framework

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File-based import uses file upload and transfer of data to interface tables.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 14 - 8

 Additional Considerations for the Import of Coverage
and Subscription Lines
Some special characteristics of the import of coverage and subscription fulfillment lines:
• You can import coverage lines against both standard and configured covered items.
• You can import coverage lines for immediate and delayed coverage.
• Document reference type attribute associates the coverage line with the covered line.
• The import mechanism captures the following key attributes: service duration,
duration period, and billing periodicity.
• Validations
– Restrict ability to save an order

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– Restrict ability to submit an order
– Checks whether the orders that are being imported need to be priced:
— If Freeze Price, Freeze Tax, and Freeze Shipping Charges are set to Yes,
then the order lines aren’t priced in Oracle Fusion Pricing because they
were already priced in another application.
— If one or more of the options, Freeze Price, Freeze Tax, and Freeze
Shipping Charges, are set to No, then the order lines are priced in Oracle
Fusion Pricing.

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

The import of coverage and subscription lines differs in some ways from the import of
other types of lines.

You can import service order lines, coverages or subscriptions, from any upstream
system to create, modify, cancel and return such service lines.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 14 - 9

 Import of Coverage Order Line Against Configured
Covered Items

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Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

The import of coverages against configured covered items has some considerations:
If the source order is prepriced by an upstream system, then the input order payload
must include coverage for each configure option (for example, option class or option
item) that is enabled for contract coverage.
If the order isn’t priced by an upstream system, then the payload needs to contain only
the root coverage, that is, the coverage line for the root model of the covered item. The
cascading logic ensures that Order Management creates child coverage lines for each
configure option that is enabled for contract coverage.
The above graphic shows the different types of configure-to-order types.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 14 - 10

 Modifications and Cancellations of Coverages Through
Order Import
You can modify and cancel coverage lines against standard and
configured items through order import.
• A coverage line is automatically canceled or modified if its
associated covered line is canceled or modified.
• A coverage line can be modified or canceled without having to
modify or cancel its associated covered line.

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Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

Examples of automatic modification or cancellation of coverage line:

• The quantity and UOM of a covered item line is changed. Therefore, the quantity and
UOM of the associated coverage item line is also changed.
• A covered line is canceled, therefore, the coverage for it is no longer needed.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 14 - 11

 Import of Coverage Return Lines

• A customer can terminate a coverage (return a coverage item)

on its own or along with an associated covered item.
– Manual return
– Automatic return
• Import of return lines of prepriced items and items priced in
Oracle Fusion Pricing

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• Document reference types associate the coverage line with
the associated covered line:
– Original_Sales_Order
– Source_Coverage_Covered_Association

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

If a customer wants to terminate a coverage, the customer returns the coverage item. The
customer can return the coverage item on its own. Alternatively, if the customer returns a
covered item, then the coverage associated with that item is returned automatically.
For automatic return due to a returned covered item
• If the order was prepriced, then the valid associated coverages also are returned in the import
payload.
• If the order was priced by Oracle Fusion Pricing, then the import payload contains the return line
for the covered item. Order Management automatically creates the return lines for all the
associated valid coverages.
For return of the coverage item only: In this case, the import payload contains only the return
lines for the coverage. The coverage line return may be against a prepriced order or one priced
by Oracle Fusion Pricing.
The return coverage line contains the following document reference types:
• Original_Sales_Order
• Source_Coverage_Covered_Association
These document reference types refer to the covered line that the return coverage line is
associated with.
Note that you can’t import returns through the business-to-business messaging framework. The
business-to-business messaging framework supports orders priced in the Oracle Cloud system.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 14 - 12

 Import of Subscription Lines

A customer can order a subscription by itself or with an

associated coverage.

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Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

The application characteristics and import considerations when a subscription is a

covered item were discussed in previous slides of this lesson.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 14 - 13

 Topics

• Overview of Order Import

• Direct Web Service Integration
• File-Based Import
• Business-to-Business Messaging

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Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

This topic discusses the types of web services you can use to import orders.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 14 - 14

 Direct Web Service Integration

You can import your source orders using:

• ADF Web service
• SOA Web service

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Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 14 - 15

 Direct Web Service Integration

• Oracle supplies the connector service for use of Configure,

Price, Quote (CPQ) as a channel system.
• You create the connector service to integrate the channel
system with Oracle Fusion Order Management.

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Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

You must create a connector service to integrate the channel system with Oracle Fusion
Order Management.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 14 - 16

 Topics

• Overview of Order Import

• Direct Web Service Integration
• File-Based Import
• Business-to-Business Messaging

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Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 14 - 17

 File-Based Import

The file-based import process consists of the following steps:

1. Create order file using the provided template.
2. Generate the upload package from the template.
3. Upload the file to the Universal Content Management (UCM)
account.
4. Run a scheduled process to transfer file contents to interface

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tables.
5. Run a scheduled process to transfer data from the interface
tables to base tables.
6. Examine the log file to determine success or failure for
individual orders and to identify errors.

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

The template file is available from the remote desktop’s file directory. The template contains
guidance for the end-to-end file-based import process. To generate the upload package from
the template, use the Generate CSV File button on the first page of the template.
To upload the package generated from the template, choose File Import and Export in the
Navigator. Create a new upload request. One parameter selects the file to upload, and the
other parameter selects the account. For the latter, select scm/sourceSalesorder/import.
The Load Interface File for Import scheduled process transfers order data from the uploaded
file to the interface tables. There are two parameters, both of which must be specified: 1)
Import Process, select Import Sales Orders, and 2) Data File, select the name of the uploaded
file. Note that by choosing the import process, you are provided only with the uploaded files in
the appropriate account.
The Import Sales Orders scheduled process transfers data from the interface tables to the
base tables. You must specify one of the following parameters: Batch Name, Source System,
or Source Order Number. Note that the uploaded file can contain more than one set of orders.
This process generates a log file that identifies which orders were imported successfully and
the error that prevented the import of orders that weren’t imported successfully.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 14 - 18

 Import Processing

Customer and
master data

Pretransformation
defaulting

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Oracle Fusion Order Management provides the following setup functionality for import
processing:
• Cross-reference of customer and master data through access to the Oracle Fusion
Trading Community Model and the Order Management and Planning Data Repository
• Pretransformation defaulting rules: Rules that automatically populate specific attributes
onto the order before product transformation. You can use the defaulted attribute value
in the product transformation rules. You can also use the rules to provide attribute
defaulting for orders that are created in the Order Management order entry user
interface.
Note: The master inventory organization and a number of other attributes are defaulted
automatically to the transformed order, so that they are available for product
transformation rules.
Example: You want to write a product transformation rule that converts the widget
weight from your company’s sales orders from kilograms to pounds, but first you must
populate the fulfillment line with the Weight attribute. You write a pretransformation
defaulting rule that says that if the product is a widget, then populate the fulfillment line
with the Weight attribute.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 14 - 19

 The above screenshot shows the steps that make up the import process:
1. Receive sales order
2. Decompose and cross-reference
3. Copy attributes from the source order
4. Transform item
5. Apply business rules to order content
6. Apply business rules to attributes
7. Create order objects in internal form
8. Apply business rules to select orchestration process for each line
9. The order is orchestrated
10. The order is fulfilled

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Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 14 - 20

 Import Processing
Posttransformation
Product Data Model defaulting
reference

Product
Transformation

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Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

Import Processing
• Item transformation and cross-referencing through access to the Product Model.
• Product transformation rules: Rules that convert components of the product for use on
the transformed order. You can set up some product transformation in the Product
Information Management work area, such as included items as structures. (You can
import the parent and have the included items added during transformation because
they are part of the Product Model structure [bill of materials].) More complete
transformations, such as customer-specific or region-specific changes, might have to be
done using Oracle Business Rules.
• Posttransformation defaulting rules: Rules that automatically populate specific attributes
onto an order based on the product transformation that is applied to the transformed
order.
Example: Your company receives orders that display the requested date as month, day,
and year. You want to add the day of the week, so you write a posttransformation defaulting
rule that populates this attribute onto the transformed order.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 14 - 21

Import Processing (continued)
After these steps, the order is created and assigned an orchestration process. Then the lines
undergo orchestration, so that they can be fulfilled.
The steps in this diagram are the same as those in the diagram on slide 14-19.

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Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 14 - 22

 Topics

• Overview of Order Import

• Direct Web Service Integration
• File-Based Imports
• Business-to-Business Messaging

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This topic discusses how you can use business-to-business messaging to import
orders.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 14 - 23

 Business-to-Business Messaging

One way to import orders is through Oracle Fusion Collaboration

Messaging Framework, an application that enables Oracle
Applications Cloud to establish business-to-business (B2B)
messaging capabilities with trading partners.
Import
• Use Collaboration Messaging Framework to send sales

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orders, updates, and cancellations from one trading partner to
another.
• First, set up Collaboration Messaging. Then, import the orders
through a scheduled process.
• Import orders that are already priced by Oracle Fusion
Pricing.

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Business-to-business messaging has many uses. Import is just one use.

Note that you can’t import returns through the business-to-business messaging framework.
The business-to-business messaging framework supports orders priced in the Oracle Cloud
system.
In business-to-business messaging, you can import orders that were priced by Oracle Fusion
Pricing only.
For more information, see Administering Business-to-Business Order Management:
Procedure in Oracle Help Center.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 14 - 24

 Demonstrations

• 14-1: File-Based Import

• 14-2: Examining the File-Based Import Template and Data File
• 14-3: Examining the File-Based Import Log File

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Instructor note: Instructor should demonstrate the above practices.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 14 - 25

 Practices: Overview

• 14-1: File-Based Import

• 14-2: Examining the File-Based Import Template and Data
File
• 14-3: Examining the File-Based Import Log File

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Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 14 - 26

 Summary

In this lesson, you should have learned how to:

• Explain direct web service integration
• Explain file-based import
• Business-to-business messaging

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Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 14 - 27

Oracle Internal & Oracle Academy Use Only
 15
Transformation

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Part 5: Order Import and Transformation
Order Management and Fulfillment Cloud
Implementation

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 Order-to-Cash Flow
Transformation

Optimize Orchestrate
Sourcing & Fulfillment
Manage, View, Schedule Pick & Ship
Enrich Order

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Global
Order
Order Inventory Finance
Create, Management
Promising Bill, Collect
Configure,
Price Order

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This diagram presents the overall order-to-cash flow. An order is created or captured in
Oracle Order Management Cloud. The order is priced using Oracle Fusion Pricing. Products
can be configured using Oracle Fusion Configurator. The order is enriched to include useful
fulfillment information. 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 in the case of models and kits. Order Management Cloud
orchestrates order fulfillment, which includes but isn’t limited to reserving material, sending
requests to ship material, sending requests to generate invoices, and billing customers.
Oracle Fusion Shipping ships the product to the customer. Oracle Financials Cloud sends the
invoices to the customer.
You can use Order Management Cloud to fulfill standard products, services, configurations,
models, and kits. You can also use various fulfillment methods, such as drop shipment, back-
to-back, and internal transfers.
This diagram focuses on order creation and submission.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 15 - 2

 Objectives

After completing this lesson, you should be able to:

• Explain transformation
• Explain when to use the different types of transformation
• Create a product transformation rule

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Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 15 - 3

 Topics

• Transformation: Overview
• Product Transformation Setup
• Types of Transformation
• Transformation Using Oracle Business Rules

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Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 15 - 4

 Order-to-Cash Data Flow
Import

Customer
Data
Transfor-
Transfor-
mation
mation

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Product
Data

Cross-
reference Data
Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

The following slides discuss transformation, specifically:

• What transformation is
• When transformation occurs
• Types of transformation that are available
• Business rules involved in transformation
• How to set up transformation
Key to the diagram:
A. External order capture systems: The systems where orders originate.
B. Fulfillment systems: The systems where inventory is tracked, items scheduled, reserved,
received, and shipped, and where invoices are generated. Fulfillment activities are not
limited to the ones listed here. There may be one or more external fulfillment systems
and one Oracle ERP Cloud fulfillment system.
- External
- Internal
- Oracle Inventory and Cost Management Cloud
- Oracle Financials Cloud

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 15 - 5

 C. Order Management and Planning Data Repository: Order Management processes
use data in the repository to cross-reference and validate data. Global Order Promising
Cloud uses supply and demand data refreshed into the order promising engine from the
repository when determining availability. The repository is populated by Order
Management Cloud and Global Order Promising Cloud data collection processes.
D. Oracle Fusion Product Model: Order Management processes use data in the Product
Model to determine the product data for orders, provide cross-system product cross-
referencing, and provide product structure decomposition rules. (Broader capability for
product information management isn’t needed.)
E. Oracle Fusion Trading Community Model: Order Management processes use data in
the Trading Community Model to determine the customer data for transformed orders
and provide cross-system customer data cross-referencing. (Broader capability for
customer data management isn’t needed.)

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F. Oracle Business Rules (Middleware): The middleware tool that is used to define
business rules that are used during decomposition and orchestration. The rules that are
defined for decomposition are stored in the middleware layer.
G. Oracle Order Management Cloud components:
- Order import: Receives single or bulk sales orders from channels and uses
defined product transformation rules to transform a sales order into an transformed
order.
- Assign and launch: Fulfillment lines are then grouped and assigned
- Business events: Business events are raised during the fulfillment process at
user-configured trigger points.
- Order entry: Order entry user interface where users can create and submit orders
- Pricing: Module where you can define and manage prices for products
- Configurator: Module where you can define and manage the product
configurations
- Orchestration: Automatically sequences the fulfillment steps for processing an
order. Calls task layer services to carry out the steps of the orchestration process.
- Task Layer Services: Execute as steps in user-defined fulfillment process
sequences. These services send information to downstream fulfillment systems
and interpret the responses and updates from those systems. For example, a ship
order process calls the task layer service Create Shipment request to send a
shipment request to the shipping system.
- External Interface Layer: Manages the communication between Order
Management and external/internal fulfillment systems. Its primary functions are
routing the fulfillment request and transforming the data.
H. Global Order Promising Cloud: Used automatically by an orchestration process to
schedule the best fulfillment options for a fulfillment line. Used manually by a user to
determine and choose availability options when manually managing an order.
I. Order Management Work Area: Used by a user, such as an order manager, to monitor
order lines.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 15 - 6

 Topics

• Transformation: Overview
• Product Transformation Setup
• Types of Transformation
• Transformation Using Oracle Business Rules

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Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

This section introduces the concept of transformation.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 15 - 7

 Transformation: Introduction

Transformation rules are used to:

• Determine how products are transformed when an imported
sales order is converted, or transformed to a fulfillment
representation.
• Automatically process sales orders in the way you want them
to appear in Order Management.

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Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

Some companies have multiple order capture applications. The information that is captured
on the sales orders might be different in each application. Not only are sales orders from
different applications different from each other, sales orders are also different from Order
Management orders, which are referred to in this chapter as transformed orders. A
transformed order is the business object that is created when a sales order is imported into
Order Management. Users can also create orders through the Order Management order entry
user interface. These orders don’t need to be transformed. Transformed orders capture
fulfillment information, such as warehouse, while sales orders are sales-focused, in that they
capture information that is important to sales representatives and customers, such as color,
quantity, and pricing.
To ensure that data are processed correctly, you can create your own product transformation
rules to determine how products are transformed when a sales order is converted, or
transformed. Product transformation rules automatically process sales orders in the way you
want them to appear in Order Management.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 15 - 8

 Sales Order Versus Transformed Order

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Transformed orders contain the information that is necessary to fulfill an order, for example,
customer, item, and quantity. When sales orders (also known as source orders) enter Order
Management, they are transformed to a fulfillment representation of orders and order lines.
Fulfillment lines also are created. All action in Order Management is taken on fulfillment lines.
A transformed order doesn’t necessarily mirror the original sales order.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 15 - 9

 Transformed Order: Example

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This example shows how a sales order with two lines becomes a transformed order with six
order lines and six fulfillment lines. The transformed order is focused on fulfillment, so the
price that was on the sales order is carried over to the transformed order in this example. The
line for a laptop in the sales order becomes a transformed line for a laptop in the transformed
order. It is assigned fulfillment line 1.1. The Deluxe Accessory Package of the sales order
becomes multiple lines in the transformed order. One line represents each of the contents of
the Deluxe Accessory Package: Docking station, mouse, AC adapter, and keyboard. A
fulfillment line is assigned to each of these lines.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 15 - 10

 Topics

• Transformation: Overview
• Product Transformation
• Types of Transformation
• Transformation Using Oracle Business Rules

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Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

This section explains how product transformation works.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 15 - 11

 Product Transformation

Product transformation is executed using a combination of:

• Product relationships
• Product structures
• Transactional item attributes
• Business rules

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Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

Product transformation is executed using a combination of product relationships, product

structures, transactional item attributes, and business rules. The item cross-reference and
structure data that are set up in the Product Information Management work area are also used
during transformation. You can write rules to enable the following types of product
transformation:
• Product-to-product
• Product-to-attribute
• Attribute-to-product
• Attribute-to-attribute
• Context-to-attribute
• Context-to-product
One rule may enable multiple transformation types.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 15 - 12

 Topics

• Transformation: Overview
• Product Transformation
• Types of Transformation
• Transformation Using Oracle Business Rules

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Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

This section discusses the different types of transformation you can set up to act on
incoming orders.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 15 - 13

 Product-to-Product Transformation

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In this kind of transformation, the product is transformed to one or more products based on
product structures, product relationship, business rules, or a combination thereof.
In the example in the slide, a sales order for a laptop and deluxe accessory package is
transformed into an order in which the components of the deluxe accessory package are
individual order lines, as explained in slide 16.
The Sales Order table has the following column headings: Line, Quantity, Product.
The Transformed Order table has the following column headings: Product, Transformed Order
Line, Fulfillment Line, Quantity.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 15 - 14

 Attribute-to-Product Transformation

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Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

In this kind of transformation, a transactional item attribute is used for transforming the
product. The transformation may be added to the existing product or replace the product on
the sales order.
In the example above, the Vision Mini Plus product with transactional item attributes of
Color=Silver and Size=8 MB transforms to item VIS481A.

The Sales Order table has the following column headings: Line, Quantity, Product, and
Transactional Item Attributes
The Transformed Order table has the following column headings: 4 MB, 8 MB.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 15 - 15

 Context-to-Product Transformation

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Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

In this kind of transformation, the context of the order is used to transform the product.
In the example in the slide, the country where the product is being shipped determines which
power cord to include with the product.
The Sales Order table has the following column headings: Line, Quantity, Product,
Transactional Item Attributes
The table in the middle shows the power cord options. It has the following column headings:
Ship To, United States, United Kingdom
The power cord is added to the transformed order. You can see it in the Transformed Order
table, which has the following column headings: Line, Quantity, Product, Ship To.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 15 - 16

 Product-to-Attribute Transformation

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Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

In this kind of transformation, the product on the sales order is transformed into an attribute of
another product.
In the example in the slide, a customer orders gift-wrapped, noise-canceling headphones. Gift
wrap appears as a child line of the parent sales order line. During transformation, the product
model number is derived and the gift wrap option appears as an attribute of the product.
The Sales Order table has the following column headings: Line, Quantity, Product.
The Transformed Order table shows the gift wrap option. The table has the following column
headings: Line, Quantity, Product, Transactional Item Attributes.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 15 - 17

 Attribute-to-Attribute Transformation

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In this kind of transformation, a transactional item attribute is transformed.

The Sales Order table contains information about the sales order. The column headings are:
Line, Quantity, Product, Transactional Item Attributes.
In the example in the slide, style and glass, which appear on the sales order, are transformed
to pane style on the transformed order. You can see the new attribute in the Transformed
Order table, which has the following column headings: Line, Quantity, Product, Transaction
Item Attributes.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 15 - 18

 Context-to-Attribute Transformation

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Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

In this kind of transformation, the context of the order is used to derive a transactional item
attribute.

The Sales Order table contains information about the sales order. The column headings are:
Line, Quantity, Product, and Transactional Item Attributes
During transformation, the Domestic Packing transactional item attribute is populated on the
sales order, so Domestic Packing appears on the transformed order. You can see this in the
Transformed Order table, which has the following column headings: Line, Quantity, Product,
Transactional Item Attributes, and Ship To.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 15 - 19

 Topics

• Transformation: Overview
• Product Transformation
• Types of Transformation
• Transformation Using Oracle Business Rules

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Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

This section discusses how you can use Oracle Business Rules to transform orders.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 15 - 20

 Transformation Using Oracle Business Rules

The following components are used in Oracle Business Rules:

• Rule conditions
• Rule actions
• Facts
• Bucket sets
• Dictionaries

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• Decision tables

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Oracle Business Rules is the Oracle Fusion Middleware technology that is used to set up
sales order transformation and other business rules in Oracle Fusion Order Management.
Business rules help you to replicate and automate your organization’s business processes
and rules. For example, if your company provides free shipping on orders over $200, then you
can use Oracle Business Rules to create a rule where free shipping is automatically added to
fulfillment lines that are part of orders of over $200.
The rule-based system is a data-driven forward chaining system. The facts (data input)
determine which rules can be executed. When a rule that matches a set of facts is executed,
the rule may add new facts. These new facts are once again run against the rules. This
process repeats until a conclusion is reached or the cycle is stopped or reset. Thus, in a
forward-chaining rule-based system, facts cause rules to be executed, and rules that are
being executed can create more facts, which in turn can execute more rules. This process is
called an inference cycle. Because of the inference cycle, rules don’t always seem to be
executed in sequence because later rules can affect the outcome of earlier rules.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 15 - 21

The following components are used in Oracle Business Rules:
• Rule Conditions: The IF part of the rule is composed of conditional expressions, rule
conditions that refer to facts. For example: IF Ordered Quantity < 20. The conditional
expression compares a business term (Ordered Quantity) to the number 20 using a
less-than comparison. The rule condition activates the rule whenever a combination of
facts makes the conditional expression true. In some respects, the rule condition is like a
query over the available facts in the rules engine, and for every row returned from the
query the rule is activated.
• Rule Actions: The THEN part of the rule contains the actions that are executed when
the rule is executed. A rule is executed after it is activated and selected among the other
rule activations using conflict resolution mechanisms such as priority. A rule might
perform several kinds of actions. An action can add facts, modify facts, or remove facts.
An action can execute a Java method or perform a function which may modify the status

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of facts or create facts.
• Facts: In Oracle Business Rules, facts are the objects that rules reason on. Order
Management provides a hierarchy of facts based on the Order Management order data
for each transformation rule dictionary.
• Bucket Sets: You can create bucket sets to define a list of values or a range of values
of a specified type for rule conditions. After you create a bucket set you can associate
the bucket set with a condition fact of matching type. Oracle Business Rules uses the
bucket sets that you define to specify constraints on the values associated with condition
facts in decision tables.
• Dictionaries: A dictionary is an Oracle Business Rules container for facts, functions,
globals, bucket sets, links, decision functions, and rule sets. A dictionary is an XML file
that stores the application’s rule sets and the data model. Order Management supplies a
number of prepopulated dictionaries that are accessed through Setup and Maintenance
to create rules for specific transformation steps.
• Decision Tables: A decision table is an alternative business rule format that is more
compact and intuitive when many rules are needed to analyze many combinations of
property values. You can use a decision table to create a set of rules that covers all
combinations or where no two combinations conflict.

An alternative user interface, called the Visual Information Builder, also is available for the
following rules:
• Pretransformation defaulting
• Process assignment
• External interface routing

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 15 - 22

 Setting Up Transformation

The complete product transformation setup consists of the

following steps:
1. Define items in the Product Information Management work
area.
2. Define and generate rule bucket sets.
3. Set the bucket sets to the facts when creating conditions.

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4. Create rules.

Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

Set up product transformation to ensure that the products are converted properly when a
sales order is transformed into a transformed order based on your business rules. Product
transformation is executed using a combination of product relationships, product structures,
transactional item attributes, and business rules. Note that the Oracle Business Rules setup
steps are optional. Use them if you need additional transformation functionality beyond what
is supplied by the product setup.
Bucket sets are optional. They are used primarily when rules are set up in the decision table
format.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 15 - 23

 Demonstrations

15-1: Creating a Product Transformation Rule

15-2: Creating a Pretransformation Defaulting Rule Using the
Visual Information Builder

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Instructor note: Instructor should demonstrate the above practices.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 15 - 24

 Practices: Overview

15-1: Creating a Product Transformation Rule

15-2: Creating a Pretransformation Defaulting Rule Using the
Visual Information Builder

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Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 15 - 25

 Summary

In this lesson, you should have learned how to:

• Explain transformation
• Explain when to use the different types of transformation
• Create a product transformation rule

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Copyright © 2017, Oracle and/or its affiliates. All rights reserved.

Oracle SCM Cloud: Order Management and Fulfillment Cloud Implementation 15 - 26