Order Management

Multi Channel Order Capture to Promise

SCM Cloud Implementation Workshop

Safe harbor statement

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purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any
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 Agenda

• Order to Cash Overview

• Returns Process
• Multi Channel Order Capture
• Validate and Transform Orders
• Price Orders
• Promise Orders

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Overview of Requirement

Functional Scope Key Features Requested

• Vision has implemented a full • Vision has a large customer base

suite of Oracle offerings and allows order capture through
including HCM, Financials, SCM various modes like
o Order entry in UI

•
and CX Cloud.
Vision has complex
vision o Spreadsheet uploads
o Omni channel systems
requirements across process capturing the orders to be
areas and is requesting the Vision Corporation has a strong fulfilled in Order
implementation partner to help presence in US, UK and APAC Management cloud
them with support needed for regions with active presence in • Vision wants to use Fusion
successful implementation. other countries as well. pricing for all order pricing
They have a diversified portfolio
• Because of the large volume of
of products like hardware, orders there is also a need to
software, computers and have accurate promising of the
accessories manufactured in orders
house, and procured through
suppliers as well.

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Implementation Approach for Cloud

Solution Driven Requirement Driven Innovation Driven

SaaS Applications Custom Applications: Emerging Technologies

• Fusion Apps (HCM, SCM, • Integrations (Oracle • AI
ERP etc) integration Cloud) • ML
• Service Cloud (Right • Oracle Process Cloud • Chatbots
Now) • BI Analytics • Oracle Content and
• Field Service • OCI Experience
• Commerce • PaaS Extension • Marketing (Eloqua,
• CPQ Responsys etc)
• EPM

Tools and Techniques

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Enterprise Structure
Legal Reporting
Units

Inventory
Enterprise Legal Entities Business Units Departments
Organizations

Calendar, Currency,
Ledger Accounting Method and Chart of Accounts

• An enterprise is a collection of legal entities • A business unit is an organization within an

sharing common control and management enterprise that performs one or many business
functions that can be rolled up in a management
• A legal entity is a real-world enterprise hierarchy
structure that has property rights and
obligations that can be enforced through courts • Use business units for:
of law – Processing Transactions

• Legal entity is responsible for – Management Reporting

– paying and collecting transaction-based taxes; – Security of Transactional Data

– submitting detailed transaction and accounting reports – Reference Data Definition and Sharing
to the authorities;
• Every employee is associated with Legal Entity
– complying with local regulations applicable to financial and Business Unit
processing and reporting
• Department has one or more workers assigned to
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it and they can be associated with cost centers
Order to Cash Process Flow Upstream Order
Oracle Capture
Capture Order
Cloud
Add /
Enter Order Check
Configure Price Order
Header Availability
items
CPQ/ EBS / CX

Downstream
Submit/Book Orders Fulfillment Systems
Validation,
defaulting, Constraints Approvals Credit Check
pricing

Assign EBS/ Others

Orchestration
Process
Downstream Billing
Systems
Fulfill Orders – Pick from Stock
Create
Schedule EBS/ Other
Reserve Pick Ship Invoice Financial
Order Systems

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Order to Cash Process – Capture and Fulfillment Options
Customer Voice
Physical Goods
- Ship from warehouse  How do I capture orders for my hardware
- Drop Ship products and also provide warranty for them on
- Back to back (Buy/MFG/Contract Mfg) the same order?
 Can I ship the physical goods like
Non-Physical Goods tablets/computer first and provide the warranty
at a later point in time?
- Services
 Can I perform partial shipment and take
- Warranty
returns?
- Subscription  Can I capture the logistical information like
FOB, Shipping method based on the end
Returns customer needs?
- Return for credit with item return
- Return for credit only
- Cancel the item Agenda for discussion, Demo

 Order and fulfillment flow variations by products

 Key differences between the flows
Revision  Demo - Capture orders and fulfill through UI
- Revise Orders

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Order to Cash – Capture and Fulfillment Process Branching
Capture Order

Enter Order Add / Check

Price Order
Header Configure items Availability

Submit/Book Orders
Assign
Validation, Orchestration
Process Schedule Order
defaulting, Constraints Approvals Credit Check
pricing

Drop 1 Create
Logical
Purchase
Shipment Receipt
Request
Non Physical
Goods /
Back to 2 Request
Create B2B Intangibles
Branching Back Shipment Supply Invoice
Shipment
(PO/MFG)

Ship from 3 Pick/Ship

W/H Reserve
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Order Capture and Fulfillment Process – Use Cases
1
Order for
physical
goods
Enter Order for Physical Pick, Pack and Ship the Invoice the customer
Goods physical goods and perform accounting

Order for non- 2

physical goods
like Service,
Subscription,
Warranty Enter Order for non- Invoice the customer
Physical Goods and perform accounting

Create 3
combined
order for
physical/non-
physical goods Enter Order for Physical Pick, Pack and Ship the Invoice the customer
Goods and non-physical physical goods and perform accounting
goods on same order

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Order Capture and Fulfillment Process – Use Cases
Fulfill order
4
using
onhand

Capture the order Pick and pack from Invoice the customer
Ship the goods
available onhand and perform accounting

Fulfill order
5
using drop
ship

Place the request to the

Capture the order supplier to ship it to the Supplier ships the goods Invoice the customer
customer

Invoice sent to the

customer

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Order Capture and Fulfillment Process – Use Cases
6
Fulfill order
using back
to back flow
Capture the order Back to Back
Complete Manufacturing
Manufacturing request

Procure the material from

the supplier using back to Pick, Pack and ship the Invoice the customer
back procurement flow goods and perform accounting

Configure
7
the order

Configure the order and Fulfill the order using Invoice the customer
submit Ship the goods
B2B flow and perform accounting
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Order Capture and Fulfillment Process – Use Cases
8
Order
capture with
Sales
Agreement
Create a sales order
reference Create a Sales
referencing the Invoice the customer
agreement in Contracts Pick/Ship the product
offering of type Sale agreement to get and perform accounting
customer pricing applied

9
Order
capture with
Project
reference Create an order
Create the Project and referencing the project Invoice the customer
tasks Pick/Ship the product
attributes – task, and perform accounting
expenditure org/date

10
Included
Warranty
with Service
Contracts
Create the sales order Pick and Ship the Create Installed base Invoice the customer
for Asset Item product and Contract record and perform accounting

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Order Capture and Fulfillment Process – Use Cases
Create
combined
order for
physical/non- Demo
physical goods
Enter Order for Physical Pick, Pack and Ship the Invoice the customer
and non-physical goods physical goods and perform accounting
on same order

Agenda for discussion / demo

 Types of orders
The order entry The customer has also
specialist Karen gets a
 Types of products that could be used on the
requested for an extended
request to create an warranty for the product orders
order for a product  Order entities – headers, lines, fulfillment lines
(tablet/laptop)
 Perform order capture
 Covered Item, Coverage Item
Karen needs to use the
Order Management UI to
create the order with the
product and the
corresponding warranty

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 Agenda

• Order to Cash Overview

• Returns Process
• Multi Channel Order Capture
• Validate and Transform Orders
• Price Orders
• Promise Orders

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Return Order Process Flow
Capture Referenced Order
Locate Create
Choose items Choose
Original Verify Price unreferenced
to return return type
Order Return Order

Invoke
Cancel
cancellation
Submit/Book Orders of service
Assign
Orchestration
Validation, Process Return Return for Create Credit
defaulting, Constraints Approvals Type credit Memo
pricing

Return for credit Return the Create Credit

with item return product Memo

Return without Return the

credit memo * product
* Needs simple custom orchestration process - Refer Doc ID
2230882.1
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Return Order Process – Use Cases
1
Return for
credit and
return
item Create the return order Route through approvals Receive goods in
Create the credit memo
if any inventory

Return for 2
cancellation

Create the return order Route through approvals Cancel the Create the credit memo
if any service/subscription if applicable

Return 3
without
credit

Create the return order Route through approvals Receive goods in

if any inventory

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Order Capture and Fulfillment Process – Use Cases
4
Return
order for
credit
Demo
Route through approvals
Create the return order Create the credit memo
if any

Agenda for discussion / demo

The order entry The customer has reached  Types of return orders
specialist Karen had out to her to return the  Create referenced and un referenced return
earlier created a order product as the package was orders
for product along with completely damaged during
warranty transit

Karen needs to use the

Order Management UI to
refer to the sales order and
create a return order

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Implementation Considerations
Return order - without reference

Customer implemented OM Cloud and did not do conversion of all old sales orders (say older than 6 months).
There could be some adhoc returns for the sales orders which were not converted. So return orders without
reference need to be created
 Large # of returns : Oracle Cloud OM has been implemented since some time now and later a large number of
returns came for a specific product. To simplify order entry, billing, and through agreement with the customer to
credit all items at the same price. The Order Entry Specialist uses the Order Management work area to create a
single unreferenced return order for all the returned items. This approach allows the Order Entry Specialist to
complete the return without having to spend many hours looking up the original sales order for each item.
Accept returns for items sold by some other company (like a refurbished reseller) - accept items that their customer
purchased from a competitor as part of a promotion to sell new laptops. Enter these items as unreferenced returns,
then sells them later as refurbished.

Return Order - Cancel

 Cancel an item that doesn't include a shipment. For example, a contract for wireless phone service typically doesn't
include a shipment. The customer can't physically return it, but you can cancel it
 Coverage and subscriptions can also be cancelled

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 Agenda

• Order to Cash Overview

• Returns Process
• Multi Channel Order Capture
• Validate and Transform Orders
• Price Orders
• Promise Orders

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 Multi Channel Order Capture to Promise

Karen services customers and The legacy orders are There is a need to ensure the
takes orders over the phone. provided to her through excel various order attributes like
She also takes care of orders templates and she needs to Shipping Instructions, Terms,
from channel systems process them and report etc are defaulted properly
including a legacy system issues if any
Karen is a customer
service representative
who creates customer
orders and manages Other than the price the For each order she needs to For some of the loyalty
order exceptions. customers need to be charged verify the right pricing customers Karen needs to
with the agreed freight and defaults onto the order verify if the applicable offers
Ensuring orders are other charges if applicable like free items default onto the
captured without orders
errors and the right
price along with
accurate delivery
dates to customers For the lines entered she She reviews possible fulfilling
helps maintain reviews the availability in options for fulfilling the order
customer order to provide accurate and reviews the best one to be
responsiveness. delivery dates used on the order

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 Multi Channel Order Capture and Import – Overview
Customer Voice

 Can I create the order in an external legacy

system and fulfill it using OM Cloud?
 Do I always need to enter the order through EDI
the OM Order UI? Call Centers Web
B2B
CPQ
 How can I upload orders in bulk from
external channels?
 Can my trading partners send me the Order
orders? Sources
Import
 Can I price my orders in external system and Orders
retain the pricing in OM Cloud?
 Can I use the OM cloud pricing for my
Methods to
channel orders? create Orders

Order File Based Web

B2B
Entry UI Import Service

Manual, Template REST/SOAP Trading Partner

Copy, Revise based via Collaboration
Msg Framework
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 Multi Channel Order Capture – Use Cases
1
Order
received by
call center
Note the customer, item, Copy from earlier order
Verify the quantity and Validate and submit the
quantity and fulfillment or create order from
price order
dates for the order scratch

Order
2
captured
from web
Order created and Order creation request Order validation and
Order transformation
submitted from web through web services creation of order in
and validation
system Cloud OM

B2B Order
3

Process the order Order validation and

Order created by the Order transformation
through the collaboration creation of order in
trading partner and validation
messaging framework Cloud OM
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 Multi Channel Order Capture – Use Cases
Order
4
capture
using FBDI Demo

Prepare the FBDI Load the data to

Correct the errors and Review the created
template, upload to interface and run Order
resubmit if needed order
UCM folder Import process

Agenda for discussion / demo

 Methods to import orders into OM like

Webservice, file upload, B2B
The order entry Karen was also contacted
specialist Karen gets a regarding an order from an  Order entities that can be imported
request to create an external Web system for  Import standard items, coverage, subscription
order which originated in which she needs to provide etc
Vision’s Legacy system
the order status  Create returns and updates
Karen needs to get the data  Demo – Order Import using FBDI
for order creation and run
the relevant processes to
create the order and check
the status

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Order Import Process - File Based Import Steps
Steps

01
Convert source data into CSV file: This data can then be ported to
the Sales Order Import template. Optionally you can also start from
step 2 if you are directly updating the order import data into the
spreadsheet.

02 Create import file as per the template:

 Download the latest template from
https://docs.oracle.com/en/cloud/saas/supply-chain-
management/ /oefsc/order-
management.html#order-management replacing XYZ
with the desired version say 20b
 Update data into the various worksheets and generate
the zip file

03 Run the ESS process “Load Interface File For Import”

04
Run the ESS process “Import Sales Order”

05
Examine the log file to determine success or failure for individual
orders and to identify errors. If orders are successfully processed
the data is deleted from the interface tables
Reference – Master Note 2665940.1
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Order Import – Web Service Integration Flow
Notes

Use Order Import Service, Receive Order

Request Web Service, or Order Information
Service to integrate Order Management
with other systems.

Sample Web services

Service Name Description

OrderImportService This Service receives

source orders from
different channel
systems.
ReceiveOrderRequest This service receives
Service source orders from
different channel
systems to pause
task, apply a hold,
release a hold, or
check availability

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Order Import – Web Service Integration Flow
Steps
1. A trading partner uses a web service endpoint that they set up
and enabled on their server to send an XML
document to the Collaboration Message web service on
Collaboration Messaging Framework.
2. Collaboration Messaging Framework converts each source
order to a CSV format (comma separated value) that Order
Management supports
3. Collaboration Messaging uses a web service to upload the CSV
files to a folder in Oracle WebCenter Content.
4. You use the order import template and a scheduled process to
convert CSV files into sales orders.
5. Collaboration Messaging Framework subscribes to a business
event that the scheduled process raises when it
finishes. Order Management recognizes the event, then sends an
order acknowledgment in an OAGIS message (Open Applications
Group Integration Specification) through Collaboration Messaging
Framework to the trading partner.
6. Order Management processes the sales order, then sends it to
shipping for order fulfillment.
7. Oracle Fusion Shipping creates and processes the shipment.
8. Shipping finishes delivery, then sends the ship confirm and
advanced shipment notice in an OAGIS message,
through Collaboration Messaging Framework, then in a reply to the
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Implementation Considerations
Setups Integrations
 Functional Setup Manager – Offerings, Features  Upstream – CPQ, EBS, Other Systems
 Manage Order Profiles – Profile name “Retain Sales Order  Downstream – 3PL Systems, EBS, Other Systems, Billing,
Number For Orchestration Order Number” Invoicing Systems
 Manage Document Sequence (can update starting #)  Custom Integration work could be involved in some of the
 Manage Order Lookups above integrations
 Order Types : ORA_DOO_ORDER_TYPES
 Return Lines : ORA_DOO_RETURN_LINE_TYPES
 Shipment Lines : ORA_DOO_LINE_TYPES
 Manage Trading Community Source Systems
 Manage Upstream and Fulfillment Source Systems

Data Conversion Analytics and Processes

 Master Data – Customers, Items, Pricing  OM Landing Page Infolets
 PIM – Items with corresponding attributes  ESS - Update or Close Sales Orders
 Pricing Strategies, Price Lists  ESS - Delete Orders from Interface Tables
 ATP – Sourcing Rules
 Open Orders Conversion (FBDI / Web services)

References
 FA: SCM: OM: Customizing Order Number Sequencing and Generation (Doc ID 2129508.1)

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 Agenda

• Order to Cash Overview

• Returns Process
• Multi Channel Order Capture
• Validate and Transform Orders
• Price Orders
• Promise Orders

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 Validate Orders
Order Management automatically validates your sales order when you click Submit, but you can also
manually validate it before you click Submit.

Validation examines the order for:

 Possible errors
 Processing Constraints
 Pricing and tax configuration

Validation without error Validation with error

Confirmation message, so the order can then be Fix each error that the Error dialog displays, then
submitted click Validate again.
Order Management adds an error or warning icon to
the order header immediately to the left of the Total
attribute, and to each order line that contains an
error. It also keeps the sales order in Draft status.
Click the warning icon to get details about the error.

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 Transform Orders
Write a business rule that populates order attributes before OM transforms a source order, while it transforms a
source order, and after it transforms a source order
Customer Voice Why
Transform?

 How can I build system controls to standardize my orders coming

from the channel systems to avoid import errors
 Can I specify an additional packing instruction for fragile items
 Can I add additional items along with item from the source
system
 Can I explode the source item into multiple other items?
 How do I convert source order line UOM of CM to Inches for my
Cloud OM order?

Enter Orders
Transform Submit
Orders Orders

Import Orders

TYPES
Pre Transformation
Product Transformation
Post Transformation

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Product Transformation Overview

Source Sales Order vs Transformed Order

• Item relationships
Product • Item Structures
Transformation • Transactional item attributes
• Oracle Business Rules

• Product to Product
• Product to attribute
Product
• Attribute to Product
Transformation
• Attribute to Attribute
Scenarios • Context to Product
• Context to Attribute

 Transformed orders contain the information that is

necessary to fulfill an order, for example, customer, item, and
quantity
 A transformed order doesn’t necessarily mirror the original
sales order.
 Fulfillment lines also are created. All action in Order
Management is taken on fulfillment lines.

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Product to Product Transformation

Source order includes a The source accessory

laptop that comes with an package in turn includes
accessory package. more than one item such
as docking station,
mouse, mouse pad etc

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Attribute to Product Transformation

Source order Source order is for an MP3

includes a product player that includes the Color
with specific attribute and Size attribute, and
attributes like color, that you must use a
size etc combination of them to
reference an item number

In OM cloud create a rule

that transforms Color and
Size of item Mini Plus to
item VIS481A.

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Product to Attribute Transformation
Source order Source order is for a glass
includes a product window which has the attributes
with specific as:
attributes like width, - Width – X inch, Height – Y
height etc inch
- Double Pane, tempered glass

In OM cloud create a rule that

transforms and gets the item
# with same dimensions but
uses a double pane, tempered
glass

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Attribute to Attribute Transformation

Source order Source order is for a glass

includes a product window which has the attributes
with specific in inches:
attributes like width, - Width – X inch, Height – Y
height etc inch

In OM cloud create a rule that

transforms the dimensions
from inches to centimeters on
the sales order

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Context to Attribute Transformation

Source order for Each region

laptops can be requires different
shipped locally in US packaging
and internationally to
UK, APAC

In OM cloud create a rule:

- Populate the Flexfield for
Packaging based on the
shipment address location

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Context to Product Transformation

Source order for Each region requires a

laptops can be placed different electrical
from different adapter, such as 110 volts
geographical locations
or 240 volts
like US, UK, APAC

In OM cloud create a rule:

- Uses location to determine
the adapter
- Adds the adapter as an
additional line on the order

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 Product to Product Transformation – Demo Use Case
Add a free Demo
screen
protector
whenever
the Capture the order The free screen
customer is header with the
Select the item on the Validate and submit the protector should get
order
GOLD type customer type “Gold”
order added

Agenda for discussion / demo

Karen the order entry She has received the order
specialist manages the request for customer who
order entry for various is of Gold Loyalty status.
 Types of transformation
channels. The customer has ordered
 Post-transformation invoking method
a tablet.  Post transformation rules using Oracle Business
Rules (OBR)
Karen reviews the product  Demo – Product-transformation rule and
transformation rule and defaulting
creates an order for the
tablet.

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 Pre transformation – Use Cases
1
Default a
ship
method Provide the item for Confirm the required
based on Capture the order which ship method default ship method is
Validate and submit the
item header needs to default updated onto the order
order

2
Default the
request
date to Provide the item, for Order transformation
sysdate+1 Create the order header which defaulting is and defaulting of request
Validate and submit the
through the UI needed order
date

Update the
3
UOM from
inches to
cm for a
specific Create the order header UOM gets updated to Validate and submit the
Provide the order type
order type through the UI cm order

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Pre transformation – Use Cases
Default a
4
Special
Shipping Demo
instruction
for an item Capture the order Select the item on the Special shipping Validate and submit the
header order instruction gets order
defaulted

Agenda for discussion / demo

 Types of transformation
Karen the order entry There is a requirement to  Pre-transformation invoking method
specialist manages the default a Special Packaging  Re-evaluation of pre-transformation on
order entry for various Instruction for a specific modifying Customer, order type or adding a new
channels including a customer and item line
legacy system
 Demo – Pre-transformation rule and defaulting
Karen builds the pre-
transformation rule to take
care of this requirement Pre transformation rules are triggered when:
• Customer details are entered or modified
• Order type is entered or modified
• Order Line is added
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 Post Transformation – Demo Use Case

Over-ride Demo
the default
shipping
instruction
for a legacy Capture the order Select the item on the
Special shipping
Validate and Validate the new
instruction gets
order header order
defaulted
submit the order Shipping Instrn

Agenda for discussion / demo

Karen the order entry There is a requirement to
specialist manages the default a Special Packaging  Types of transformation
order entry for various Instruction for a specific  Post-transformation invoking method
channels including a legacy customer and item  Post transformation rules using Oracle Business
system Rules (OBR)

 Demo – Post-transformation rules and defaulting

But if the order for the Karen sets the post-
same item comes from a transformation rule to take
legacy system then a care of this requirement
different legacy packing
needs to be used

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 Pre, Post Transformation – Use Case working
Orders shipped for ABC Application for some of the items need to use New Shipping Labels. But if the order source is a
Legacy system then the Shipping Instruction should be updated to “Legacy Shipping Labels.

Create Pre transformation defaulting rules

Create sales order using UI for ABC
Create Order - UI
Customer and a specific item
Enter Order > Shipping Instruction – New Shipping
Order 999 – ABC Item Shipping Instruction Label
Application
Fulfillment Line 1 Tablet New Shipping Label Prior Unless overwritten by the user the shipping
instruction stays on the order
Book the
Order
Create Post transformation defaulting rules
Post
Import Legacy Order imported from Legacy system Enter Order > Shipping Instruction – New Shipping Label
Order for the same Customer and item
Submit the order
Order 1000 – ABC Item Shipping Instruction
Customer The defaulted shipping instruction now gets overwritten
Fulfillment Line 1 Tablet Legacy Shipping Label with “Legacy Shipping Label” even if the shipping
instruction is overwritten by the user

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Implementation Considerations
Setup Tasks When does transformation get invoked? – Doc ID 2660075.1
 Manage Pretransformation Rules for Sales Orders
 Manage Product Transformation Rules
 Manage Posttransformation Defaulting Rules

Additional Configuration
Oracle Business Rules
 Rule conditions
 Rule actions
 Facts
 Bucket sets
 Dictionaries
 Decision tables

Run rules when they apply

 Order Management work area – OM only runs transformation
rules and post transformation rules on order lines
 Web service or the order import - OM runs transformation and
* Referenced Return orders do not trigger any transformation rules when
post transformation rules when it validates the draft sales order submitting an order
during import. It runs these types of rules on both order lines and * Pre, Product and Post Transformation rules do not apply for orders
return order lines created through REST, instead OM Extensions need to be used
 No pre-transformation on order revision for orders entered in UI,
post transformation can be used in such cases FA: SCM: OM: Master Note - Transforming Data on Sales Orders Using Pre,
Product and Post Transformation Rules (Doc ID 2675921.1)
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 Oracle Business Rules (OBR) - Considerations
Visual Information Builder Extensible Flexfields

Transformation Rules

Native OBR
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 Agenda

• Order to Cash Overview

• Returns Process
• Multi Channel Order Capture
• Validate and Transform Orders
• Price Orders
• Promise Orders

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Pricing Overview
Plan pricing strategies so they Manage the pricing rules that
align with your business control how Pricing applies a price
objectives. Use characteristics of adjustment. For example,
your customer, the item, and the administer a discount on the list
buying context to identify market price of an item.
segments.

Enforce spending limits to Apply common pricing logic across

prevent an excessive discount. all sales channels. Achieve
Make sure pricing is accurate so it consistent and accurate pricing
meets your corporate revenue throughout the order-to-cash
and margin objectives. process.

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 Customer Pricing Profile and Segment
Pricing
Profile
Long
established
customers

Medium
sized
customer

New
Customer

Pricing
Segment

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Profiles, Segments and Strategies
Pricing Profiles:
Use a pricing profile to describe the buying characteristics of each
of your customers.

Pricing Segments:
Use a pricing segment to categorize sets of customers, understand
their business motivations, and offer a pricing solution. Use it to
track pricing performance and analyze similar customer situations
to help you improve revenue and margin. Eg: Corporate segment,
international segment, and a domestic segment.

Pricing compares the pricing profile to each row of the pricing

matrix until it finds a match. If more than one row matches, then
Pricing uses the row that contains the lowest value in the
Precedence.

Pricing Strategy:
A pricing strategy is a set of pricing rules that you set up to achieve
a profitability goal for selling and pricing an item.

The pricing strategy specifies the price, cost, discount, currency

conversion, shipping rules, and return price that Pricing uses to help
meet the pricing objective of the pricing strategy.

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Pricing Strategy
A pricing strategy is a set of pricing rules that you set up to achieve a profitability goal for selling and pricing
an item. The pricing strategy can include various pricing rules:
 Price List
 Cost List
 Discount List
 Shipping charge List
 Return Price List
 Currency Conversion List

 The pricing strategy allows you  The pricing strategy allows you to
to indicate if Price List Override indicate if Currency Override is
is allowed allowed

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Price Elements and Pricing Rules
A price element is an object that a pricing algorithm uses to capture different types of prices, costs,
adjustments, taxes, or profit margins that it requires to create a price breakdown or pricing analytic. Base List
Price, Net Price Plus Tax, and Margin are each an example of a price element.

The various price elements get a value using

one or more of Pricing Rules:
 Price Lists
 Discount Lists
 Cost Lists
 Currency conversion lists
 Shipping charge lists

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Pricing Sales Orders

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Price Lists
Price Lists are defined collection of prices for items and services targeted for a set of customers for a specific
period of time.
Price List Type Description
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
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

Charges Calculation method for charges:

You can define charges to calculate the base list price for items and services.  Price
 Cost
An item might include more than one charge, such as a one-time sale charge  Covered item cost percentage
and an administration charge. You can create a pricing charge definition that
adds a handling fee to this item.
Options for creating and updating Price Lists:
Support various types of adjustments for each charge:  FBDI
 Manual  ADFdi
 Tier based  Manually
 Attribute based
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 Pricing – Use Case
Vision charges the customer a flat amount of $ 100 for each laptop item it sells. But for customers who order
in bulk it also provides differential pricing based on the quantity ordered. The more the number of units
ordered it provides better pricing for each unit.

Tiered Pricing Requirement

Laptop – 15.6 “
Order between 1-5 Price reduction adjustment = $5 per unit

Order between 6-10 Price adjustment = $10 per unit

Base Price = 100 USD Order anything more than 11 Price adjustment = $15 per unit

Pricing Calculation Minimum Maximum All Tiers Highest Tier

Scenario –
All vs Highest Tier Tier 1 1 5 5 qty @ $5 adjusted price NA

Tier 2 6 10 5 qty @ $10 adjusted price NA

Order quantity =
14 Tier 3 11 NA 4 qty @ $15 adjusted price 14 @ $15 adjusted price

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Discount Lists
Discount list is a container of rules for defining discounts.
o The discounts can be seasonal discounts, volume discounts according to price or quantity.
o The discount applied can be flat rate or percent based.
o Apply attribute based discount using pricing matrix

Support various types of adjustments for each charge:

 Manual
 Tier based
 Attribute based

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Cost Lists
Cost list can be used to setup cost plus pricing. Cost list can be used to setup charges like item
cost, sales commission, labor cost etc. Cost lists allow to manage and optimize charges and profit
margins for the item.

Cost plus pricing : If you use cost plus pricing, then Oracle Fusion Pricing calculates the item
price according to attributes you set on the price list and the cost list. The cost of an item is the
sum of the charges that you define for the item on these lists.

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 Pricing Matrix
Use a pricing matrix to apply conditional logic on a pricing entity according to the value of an attribute that you
specify.

A pricing matrix is an array that specifies

conditions and results.

 The array contains rows and columns.

 Condition columns specify the condition to
test, such as Customer Size equals Small.
 Result columns specify what to do when
the condition is true, such as use the
Corporate Segment.
 Each row specifies a separate condition
and result.

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 Pricing Matrix Class
A pricing matrix class is a template that defines the structure of the pricing matrix. Use it to add condition
columns and result columns to a pricing matrix.

Each pricing matrix class includes columns.

 Condition columns specify the conditions that

determine whether to apply the result.
 Result columns specify what to do when all the
conditions are true.

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 How do Pricing Matrix Class and Matrix Type Work together
Matrix class determines the condition columns that display for the pricing matrix in the Pricing Administration
work area. Use the matrix type to identify the matrix class that Pricing uses for each pricing entity. For example,
use the Pricing Segment matrix type to instruct Pricing to use the Pricing Segment matrix class when Pricing
processes a pricing segment.

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 Implementation considerations
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. Oracle Fusion
Pricing comes predefined with matrix types and matrix classes. Each type references one, and only one, class.
Each class specifies conditions and results.
 Use the predefined classes, when possible
Predefined Matrix Type Predefined Matrix Class
 If you must modify a predefined class, or add a
Pricing Segment Pricing Segment new one:
 You typically define a new condition column.
Sales Pricing Strategy Assignment Sales Pricing Strategy Assignment
 You only rarely need to define a result
Price List Charge Adjustment Price List Charge Adjustment column.
Discount Adjustment Pricing Term Adjustment
 You can use only a predefined result column
with a predefined pricing algorithm.
Pricing Term Adjustment Pricing Term Adjustment  Don't remove a predefined result column. It
Line Strategy Line Pricing Strategy Assignment might cause an error when the pricing
algorithm runs.
Pricing Charge Guideline Pricing Charge Guideline
 If you add a new result column, then you
must modify the pricing algorithm in the
same way to make
 sure the pricing algorithm uses the new
result.
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 Price Orders – Infrastructure Components
Service Mappings:
Integrate with the calling application that requires pricing, such as
Order Management Cloud. Map inputs from the calling application
to outputs that the matrix and algorithm can use.
Service
Mappings Set up attributes so rules in the pricing matrix can use them.
Set up services and pricing entities to provide structure for variables
that the pricing algorithm uses.

Pricing Matrix:
Set up conditions and dimensions in the pricing matrix.

Choose attributes in the condition and result columns of the matrix

class from the entity attributes you set up in the service mapping.
Pricing
Pricing Matrix The algorithm uses condition dimensions and their values to
Algorithm compare the runtime value against the value of the design time
rule. The result values are the result of evaluating the conditions.

Pricing Algorithm:
Set up the algorithm so it uses the pricing matrix to evaluate and
apply pricing rules at run time.

Set up the algorithm to transform the attribute values it receives

from the service mapping to output values.
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Pricing Architecture
SDO (Service Data Object):
A data structure that doesn't conform to a single
programming language. It facilitates communication between
Input SDO Output SDO applications. It allows a service to call another service without
having to conform to the requirements of a single language. A
Service Mappings service data object typically includes elements arranged in a
tree structure that includes a root and branches, and it allows
Order Header the calling service to access the data that these elements
Services reference.
Order Line Sources Entities
Customer and Product:
•
•
TCA
PIM
Group Map inputs to Source:
The source is a mapping that specifies the relationship
attributes into outputs
Transaction: hierarchies Prepare Data
• Order Management that services
can use
Call algorithms between the source and entities. It provides a structure so
•
Pricing can model data in the input SDO.
Contract Management Send Priced
• Inventory Management Document

For example, the predefined Sales service mapping includes

the Order Total source, and this source includes details about
the Order Header and Order Line.

Maps between the OrderLine source and the Header entity

Maps between the OrderLine source and the Line entity
Pricing Matrix (Rules) Pricing Algorithm
Service:
Pricing uses these Services to price a sales order

Entities:
Reference the entities that the Service Mapping
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requires to structure the output SDO
Price Orders- Use Cases
1. Karen is a Pricing Administrator for a large multinational corporation. As part of the annual review,
Karen has to
a) Create/review/update price of a standard item
b) Create/review/update price of a configurable item
c) Create/review/update price of a coverage item
d) Create/review/update price of a subscription item
2. Karen is a Pricing Administrator for a large multinational corporation. She has to set up Oracle
Fusion Pricing so that it assigns the pricing strategy according to the type of sales order.
3. Karen is a Pricing Administrator for a large multinational corporation. She has to set up multiple
charges like one time sales charge, administrative fee, handling fee etc.
4. Karen is a Pricing Administrator for a large multinational corporation. She has to define:
a) Say 5% discount on a one time sale
b) Apply Tiered discount accordingly to order amount or order quantity
i. 5% discount on order quantity till 10
ii. 10% discount on order quantity from 11 to 20
iii. 15% discount on order quantity greater than 20
c) Attribute based discount
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Price Orders- Use Cases
5. Vision 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.
6. You are a pricing administrator of a large multinational corporation. As part of migration process,
you have to import price lists using FBDI Import Template
7. You are a pricing administrator of a large multinational corporation. As part of the annual review,
you have to update price of multiple items using ADF DI Framework.

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Technologies to Manage Pricing Rules

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Decision Chart for using the right Technology

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Implementation Considerations
Setups
 Master Data – Customers, Items, Pricing
 PIM – Items with corresponding attributes set

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 Agenda

• Order to Cash Overview

• Returns Process
• Multi Channel Order Capture
• Validate and Transform Orders
• Price Orders
• Promise Orders

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 Promise Orders
Effective order promising can “save the sale” when a fixed lead time promise date would have been too
conservative, or when current stock is limited, but more can be produced, transferred or bought to meet
demand. Just as importantly, it can prevent unrealistic promise dates that lead to late deliveries, especially in
complex fulfillment scenarios. When orders are booked availability checks and Promising results are
performed to provide accurate details to the customer service personnel.

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Appendix

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Order Management New Features 21A-21D
 Link to Scm Application Pages Using Deep Links
 Project-driven Supply Chain Enhancements
 Search and Select Bill-to and Ship-to Attributes on Sales Orders
 Configurator
 Filter Connectable Items for a Configurator Model
 Display the Item Number in the Configuration Running Summary
 Channel Revenue Management
 Define Product Eligibility Rules Based on Item Attributes
 Global Order Promising
 Schedule Internal Sales Orders from External Source Systems
 Sequence Planning Processes Using Job Sets
 Specify How Long to Wait Before Giving Control to Users after Submitting Sales Orders
 Integrate Order Management Cloud with Oracle Fusion Payments
 Use credit card tokens to improve security when you import sales orders through rest api

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Order Management New Features 21A-21D
 DUAL UNITS OF MEASURE
- Create and fulfill Sales Orders in Primary/Secondary UOM
- Support for Standard/Back to Back/Drop Ship Orders
 REDUCE INVENTORY WHEN NO PICK/SHIP IS REQUIRED
- Use these for Over the Counter Sales
 RETURN CONTROL TO USERS AFTER ORDER SAVE
- Order Management parameter to allow users to navigate away from Sales Order
incase of orders with large number of lines

 Release Readiness page

 Enable Offerings for Oracle Applications Cloud Release 13 Upgrade (Doc ID 2317112.1)

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