Pre-requisities , Credit hold & Credit Check in Oracle Order Management

What is the main difference between Credit check and Credit Hold?

Credit Hold is used to prohibit orders from being progressed beyond entry or booking, from a specific customer. It is not dependent on Credit Limit or Previous Balance or any criteria. This is normally used when you need to immediately stop all ordering for a customer.

Credit Checking allows you to control which customer site is affected, what the credit limit is, what is included in the credit check, etc.Credit Management provides even more control and functionality.

You can use Credit Checking and Credit Hold together or separately.

You Can disable to Credit Hold and enable Credit Check.

You can use Credit Check and Credit Hold together, if you think you need both functionalities. As indicated, Credit Hold will prohibit any
processing of the order. Credit Check is used to evaluate the customer's credit limit, outstanding balance, etc. It will function differently depending on numerous setting and situations. In case if you are implementing these you need to review OM Documentation to see all the various ways you can chose to opt credit checking.

Do you need to have 'Credit Management' module installed in our instance to use Credit Check?

You do not need to have the Credit Management module installed to use standard credit checking.

Does Credit Check will not prevent an order from Pick Releasing and Shipping if we set it up at those levels in the Transaction Type setup?

Defining Credit Checking on the Transaction at Pick Releasing and Shipping SHOULD cause Credit Checking to occur before an order picks or ships. However, there are other settings which impact this. For one, the behavior will depend on whether you have defined Order or Line level credit checking. The credit check will depend on the credit exposure existing at the time of pick release or ship. That is impacted by your credit Rule. Also, the credit checking behavior is dependent on how you have set up the option Override Manual Release on the Credit Checking Rule.

There is something called "OVERRIDE MANUAL RELEASE" which you can use this options. If you are, choose the number of Days to Honor Manual Release.

The Override Manual Release checkbox controls whether the credit check process will be triggered even if holds were released manually or not.

The Override Manual Release checkbox, used in conjunction with Days to Honor Manual Release field, enables you to define the duration (number of days) you will forego additional credit checking if an order or line credit check hold is released manually. Manually released holds are honored only during processes that are performed after Booking such as Picking, Packing, and Shipping.

If Override Manual Release is enabled, the credit checking process will validate if the release date is within the interval defined by the value of Days to Honor Manual Release. If the value is within the range defined, then manually released holds will be honored and additional credit checking is not performed. If the value is not within the range defined, credit checking can occur again and credit check holds can be applied if the order or lines fail the credit check process.

For example, suppose you have defined a Credit Check Rule in which you have enabled the Override Manual Release check box, with a value of 15 within the Days to Honor Manual Release field. Assume that this credit check rule is assigned to the transaction type as a Credit Check Rule for Booking and Shipping. If you manually release an order or line from credit check hold after Booking, and if you ship the order or order line within 15 days, Order Management will not enable credit checking to occur again during Shipping. However, if you ship after day 15, then Order Management will enable the credit checking process to be invoked again.

That means there is no guarantee that Credit Checking will work as you expect, just by defining the activities on the Transaction Type.

Credit Check Functionality in Order Management for Techies:

his post will more focus on Technical part of credit check Functionality. You can check thefunctional part of credir check functionality here.

 TABLES

These are the main tables used for holding Credit Check functionality.

• OE_HOLD_AUTHORIZATIONS
• OE_HOLD_DEFINITIONS
• OE_HOLD_RELEASES
• OE_HOLD_SOURCES_ALL
• OE_CREDIT_CHECK_RULES
• OE_CREDIT_SUMMARIES
• OE_EXPOSURE_INTERFACE
• HZ_CUSTOMER_PROFILES
• HZ_CUST_PROFILE_AMTS

 PROFILE OPTIONS

These Profile options specially meants for controlling credit check functionality.

• OM: Modify Seeded Hold
• OM: Preserve External Credit Balances
• OM: Prevent Booking for Line Generic Hold
• OM: Schedule Line on Hold

 SYSTEM PARAMETER OPTIONS

• Apply credit hold on zero value
• order Credit Hold Sequence for Order Lines
• Initiate Credit check at Cancellation

 API

Credit checking in Oracle Quoting allows the user to determine the credit worthiness of a customer while working on a quote. The user can decide if the quote should be submitted for business approvals credit verification. The profile option ASO: Enable Credit Check determines if credit checks can be performed.

There are two types of credit checks available in Oracle Quoting:

• Internal — Internal credit checking is based on transaction data in the quote, and historic transaction data in Oracle Order Management and Oracle Receivables. It pertains to quote header-level billing information. Internal credit checks are performed by the public credit check API OE_EXTERNAL_CREDIT_PUB.
• External — External credit checks are configurable by an application developer and allow users to make calls to non-Oracle applications.

You should be very clear on key differences between internal credit checking and the credit checking functionality in OM, which is as:

• Item category limits are not checked in the public credit check API provided for internal credit checks.
• Credit checking is only available at the header level in internal credit checking, while OM credit checking supports both header and line level credit checks.
• There is no Holds functionality for Internal credit check.

 CONCURRENT PROGRAM

1. Initialize Credit Summaries (OEXINICS)

·         This Program enables you to periodically rebuild a credit exposure image for all customers or customer sites for all possible credit rule definitions.

·         When you submit the ‘Initialize Credit Summaries’ program, the changes to customer or customer site credit exposure is calculated and updated in OE_CREDIT_SUMMARIES table .

Therefore you have to understand the frequency with which you run Initialize Credit Summaries will be based on ones business needs.

If the requirement is to have customer's credit exposure to be close to the online credit exposure calculation, then probally you can run it frequently.

·         Take a note, this program will not delete the externally imported exposure records if profile option OM: Preserve External Credit Balances is set to YES

2. Credit exposure Import (OEXCEIMP) & Purge Imported Credit exposure (OEXCEPRG)

Credit exposure Import

·         First program ie Credit Exposure Import program enables you to import external credit exposure details for sales orders created outside ofOracle Applications into Oracle Order Management.Those who are doing system integration can take advatange of this.

·         External exposure data is imported from interface tableOE_EXPOSURE_INTERFACE into OE_CREDIT_SUMMARIES table. Once import is successful, data from OE_EXPOSURE_INTERFACE is get deleted.

·         All externally imported exposure detail records will have the value 18 for the field BALANCE_TYPE column in ‘OE_CREDIT_SUMMARIES’.

·         The Credit Exposure Import program can be submitted in two different modes, UPDATE and INSERT.

o    Insert Mode: All credit exposure amounts previously imported will be overwritten .

o    Update Mode: The credit exposure amount within ‘OE_CREDIT_SUMMARIES table will either be added (positive amount) or subtracted (negative amount) to any previously imported amount. If a corresponding exposure amount does not previously exist, a new exposure amount record will be created.

·         Interface records are processed based upon the mode, which is determined by the value of the column OPERATION_CODE within the exposure interface table OE_EXPOSURE_INTERFACE.

Purge Imported Credit Exposure

·         The ‘Purge Imported Credit Exposure’ program enables you to purge imported external credit exposure records from OE_CREDIT_SUMMARIES table.

3. Credit check Processor (OEXAUCRC)

·         Credit Check Processor can automatically apply OR release order or order line credit holds.

·         Best use of this program when you suspect your customers credit exposurehas changed and you want to re-evaluate their sales order status .

·         You can also use Credit check Processor whenever you change the customer credit profile or credit check rule set up and you want these changes to immediately take affect on your booked sales orders.

·         Credit check processor "always" uses Booking Credit check rule to apply/release the holds.

·         There is limitation for applying the hold through credit check processor it currently only considers exposure of the order lines which are in 'Booked' status.

·         When using pre-calculated exposure in credit check rule, run the ‘Initialize credit summaries’ concurrent program every time before running the credit check processor.

 REPORTS

You can take advantage of these reports.

·         Credit exposure report

·         Credit Limit Usage Report

·         Lines on Credit check hold report

·         Orders on Credit check hold report

 CREDIT CHECK QUERY

You can navigate as

Setup => Rules => Credit

1.  

2. SELECT

3. NAME  "Rules",

4. TO_CHAR (START_DATE_ACTIVE, 'DD-MON-YYYY')  "Effective Dates From",

5. DECODE (CREDIT_CHECK_LEVEL_CODE, 'ORDER', 'Sales Order') "Credit Check Level",

6. DECODE (CREDIT_HOLD_LEVEL_CODE, 'ORDER', 'Sales Order') "Credit Hold Level",

7. DAYS_HONOR_MANUAL_RELEASE  "Days To Honor Manual Release",

8. CONVERSION_TYPE  "Conversion Type",

9. CHECK_ITEM_CATEGORIES_FLAG  "Check Item Categories",

10.    SEND_HOLD_NOTIFICATIONS_FLAG  "Send Hold Notifications",

11.    QUICK_CR_CHECK_FLAG "Use Pre-Calculated Exposure",

12.    INCLUDE_EXTERNAL_EXPOSURE_FLAG "Incl External Credit Exposure",

13.    OPEN_AR_BALANCE_FLAG "Incl Open Receivables Balance",

14.    INCLUDE_PAYMENTS_AT_RISK_FLAG "Include Payments At Risk",

15.    OPEN_AR_DAYS "OPEN Receivables Days",

16.    UNINVOICED_ORDERS_FLAG "Include Uninvoiced Orders",

17.    INCL_FREIGHT_CHARGES_FLAG "Incl Frght And Special Charges",

18.    INCLUDE_TAX_FLAG "Include Tax",

19.    ORDERS_ON_HOLD_FLAG "Incl Orders currently On Hold",

20.    SHIPPING_INTERVAL "Scheduled Ship Horizon Days",

21.    MAXIMUM_DAYS_PAST_DUE "Maximum Days Past Due"

22.    FROM apps.OE_CREDIT_CHECK_RULES

23.     

24.     

25.     

Hope this will helps.

High Volume Order Import (HVOP):

High Volume Order Import aka (HVOP) is a yet another alternate option for processing of huge volume of orders.

HVOP is designed for large order volumes (between thirty-thousand and one million order lines per day), with a limited load window, using limited hardware resources.Benchmark study says, HVOP achieves a 2 to 4 –fold improvement relative to standard Order Import.

If you have relatively large volumes say 100,000+ lines per day or more, probabally you need to consider HVOP, else if you shorter window like importing 5000 lines per CPU in an hour, then this also a good options.

For Order Management HVOP order import, no special setup is required.

Before opting for this over Order import check it out what is supported and what not and see what functions are a real fit.

Supported Operations

• Common pricing features
• Item Cross References
• Booking
• Holds
• Shippable/ non-shippable flows
• Credit Checking

Unsupported Operations

• Add Customers
• Configurations
• Advanced pricing features (modifiers)
• Audit Trail
• Returns
• Reservations
• Updates / Deletes
• Importing Closed Orders
• iPayment Integration and credit card orders

Therefore for internal orders, drop shipments, ship, arrival and fulfillment sets, processing constraints and complex defaulting users must continue to use Order Import.

If you really looking options you can use the HVOP Questionnaire on Oracle Metalink to determine if HVOP will work for you or not. Good luck !

Credit Check Functionality in Order Management:

Credit checking feature of Oracle OM provides the ability to check that the customer has sufficient credit available with the organization at the point of order booking ,picking, packing and shipping. Credit check rules, order transaction type, payment terms and credit profiles are the key setup entities that influence the credit check process.

Oracle OM credit checking includes:

• Validating orders and lines against existing credit limits defined in the credit profile.
• Placing credit holds at either the order or line level.
• Sending credit hold notifications to order creator.
• Automatically apply or release order or order line credit holds using credit check processor program.
• Reporting and querying tools to effectively manage your credit processes and ensure credit holds are processed in a timely manner.

Main purpose of Credit checking process is to minimize the financial risk that the organization assumes as a result of day-to-day transactions.

In order to utilize this great feature these are mandatory setup you have to do:

• Credit Check Failure Hold Setup (seeded)

Navigation would be

Order Management > Setup> Orders> Hold.

·          

• Name: Credit Check Failure
• The seeded Credit Check Failure hold is a generic hold and not an activity specific hold.
• Modifying the definition of the credit check failure hold can be prevented by setting the profile option OM:Modify Seeded Holds to NO.
• Activating & Deactivating Credit Check
• Activating Credit Checking Credit checking is performed based upon the criteria met of following 4 conditions:

1.    You need to enable credit profiles for customer in accounts receivables.

2.    You need to enable credit check flag on payment terms used on the order or Line.

3.    You need to define credit check rule.

4.    You need to assign credit check rule to the order type used.

• Deactivating Credit Checking There are three ways to deactivate Credit Checking on an order:

1.    You can use an Order Type that does not have an assigned credit check rule.

2.    You can define the Customer Profile with ‘Credit Check’ checkbox unchecked.

3.    You can setup Payment Terms on Order /Line with ‘Credit Check’ checkbox unchecked.

Deactivating Credit Checking does not automatically release orders previously on credit check failure hold.

Four main setup is mandatory as per figure below:

 STEP BY STEP - ENABLING CREDIT CHECK FUNCTIONALITY

Step 1: Credit Check Rules Setup
Order Management Super User
Setup>Credit>Define Credit Check Rules

Once Credit Check Rule set then this can be used at the following points in the Order Life Cycle.

The same credit check rule, or different credit check rules, can be defined for all four (4) of these phases:

1.    Ordering

2.    Picking/Purchase Release

3.    Packing

4.    Shipping

STEP 2: Customer Profiles Setup
Customer>Standard
On the Profile: Transaction Tab, ensure the credit check box is checked

In the Profile:Amounts Select the currency and change the Order Limit and Credit Limit to as needed

Step3: Payment Terms Setup
Setup>Orders>Payment Terms

Step4: Order Types Setup - Select at what stage of Ordering you would like to perform Credit Check

Setup> Transaction Types>Define

Step5: Run the “Initialize Credit Summaries Report”

Order Management Super User
Setup>Credit>Initialize Credit Summaries

Step6: Run the “Credit Exposure Report”
Reports, Requests>Run Reports

Step7: Now Test

Now Book the Order.

You should see the credit check hold being applied and a message indicating the same

One more concept you have to understand, if your company or client operating working in Global model.

 GO GLOBAL

Global exposure involves credit check using overall exposure calculated from ALL ORGANIZATIONS (this is the term associated with Global Exposure) or credit exposure calculations using SINGLE organizations.

There are two levels available for this type of credit checking:

1.    Customer level credit checking and the overall credit limit defined at this level will be used.

2.    Org Default level credit checking and the overall credit limit defined at this level will be used.

3.    Site level and Item category level are not applicable to global exposure because customer sites are specific to an organization only and currently the item category credit checking is limited only to the specific sale order being credit checked.

4.    Global Exposure usage:

o    Site Level: Not Available

o    Customer Level: Available

o    Item Category Level: Not Available

o    Customer Default Level: Available

5.    In order to enable Global Exposure, Navigate to Order Management Super User > Setup > Credit > Define Credit Usage Rules.
Enable a checkbox option called: Global Exposure

If a rule has been assigned to a credit profile, then modification of the rule set is not allowed. If a rule is new or not assigned to a credit profile, then modification is allowed. Next lets expose more on credit usage Rule.

 CREDIT USAGE RULES

• Usage rule set defines the set of currencies that are involved in a specific credit check process.
• Credit usage rule ensures that all transactions for specified currencies go through the currency conversion process prior to the credit checking process.
• Usage Rule Set can be assigned to a Customer Profile Class, Customer account, Customer site, Item category or Operating Unit Default.

Credit Usage Rules enables:

1.    Multi Currency Credit Checking

2.    Global Credit Checking

Multi Currency Credit Check

·         With Multi-currency credit checking, you need to define just credit profile with single currency (e.g in US dollars) and share it among the other currencies. With Single currency credit check you must define a credit limit profile in each currency since each currency is treated individually for credit check purposes.

·         If you do not assign a credit usage rule set to the credit profiles, then the credit checking is performed as Single currency credit check.

·         While assigning usage rule to a profile a currency for the profile needs to be specified. The limits and the currency defined for that particular profile will be picked as multi-currency and credit checking will be done based on these limits.

·         For using multi-Currency credit checking set the Profile option AR: Credit Limit Selection to MULTI.

Global Credit Checking

·         Global exposure involves credit check using overall exposure calculated for all Organizations.

·         Global credit checking can be enabled by selecting the 'Global Exposure' check box in Usage Rule Set.

·         Global Credit checking is not applicable to Site level and Item category level profiles because customer sites are specific to an organization only and item category credit checking is limited only to the specific sale order.

SOME SENARIO BASES FAQ

 we have implemented AR module.Is it possible to implement Credit check for AR invoices.
We have created customers with credit limit, but on invoicin what if you donot have OM , can i use Credit check function with AR only?

 Credit check is not directly available in AR. If you refer back to AR Implementation Guide it states :

Credit Check: If you select the Credit Check box, then Oracle Order Management will check the customer's credit before creating a new order, provided that the Payment Term and Order Type associated with the order also require credit checking. Receivables does not check your customer's credit when you create transactions in Receivables.

We are using Credit Check and Credit Hold. In Profile Amount we gave profile amount for each currency. Now we want to see for each customer what is credit Balance available.

Go to Receivales Super User -> Reports -> Listings -> and then run the Credit Limit Usage Report.

Also you check the output of the program "Customer Credit Snapshot"

Is it possible to set up credit checking rules across BGs? This is to prevent order booking on customers who have outstanding with business entities across the globe.

 Yes , if you are R12 , you can achieve, Credit Management utilizes the TCA Relationship Manager hierarchy, the data in a credit review can be consolidated and calculated for Party / Customer Account and Site levels

Hope this helps.

“Internal” versus “External” Drop-Ship: What’s the difference?

Difference between "Internal" and "External" Drop-Ship

In Oracle Context External Drop-Shipping means your Oracle Order Management uses purchase orders to outside suppliers that are automatically generated from sales orders for goods supplied directly from the supplier. The “external ” supplier ships the goods directly to the 3rd Party customer and confirms the shipment through the use of an Advanced Shipment Notice(ASN).

You should take a note,Oracle uses this ASN to record a receiving transaction into inventory followed by an immediate logical shipping transaction. From these transactions, conveyance of title takes place and the customer can be invoiced and the supplier’s invoice can be processed.

where as “Internal” context Drop-Shipping functions in a similar fashion. The key difference is that no inventory transactions take place on the books of the selling operating unit; transfer of ownership of the goods from shipper to seller to customer with the only physical movement of the goods being out of the shipping organization.

Drop Shipment – Functional Setup and flow

A Drop Shipment occurs when a customer order is sourced from and delivered by a supplier.

Order Management sends information to the Purchasing Application to create that PO, and then when that PO is received (to indicate shipment from the supplier to your customer), the order line is automatically updated to indicate that it was fulfilled.

In this process, the company running Order Management is modeled as the company to whom the end customer places the original order.

Drop Shipment - Setup

You need to make sure these are attribute setup Correctly:

• Item Attributes

Purchased : Enabled
Purchasable : Enabled
Transactable : Enabled
Stockable : Optional
Reservable : Optional
Inventory Item : Optional
Customer Ordered : Enabled
Customer Order Enabled : Enabled
Internal Ordered : Disabled
OE Transactable : Enabled
Shippable : Optional

• And ,your do set up for Order Source Type as External

Drop Shipment – Your Setup checklist

• Ensure you have created your Order Management Transaction Types and linked your Transaction Types to order and line workflows that support drop shipments.
• Ensure the Oracle Workflow Background Engine is running.
• Ensure all Drop ship locations you will use to perform drop shipments have the Ship To Site and Receiving Site defined.
• Ensure you have defined the Internal Ship To Locations for your drop shipment customers (Oracle Receivables Standard Customer window, Business Purpose Details Tab).
• Ensure your standard items have an associated List Price defined within your PO Inventory organization (Oracle Payables Financial Options window, Supplier-Purchasing Tab).

Drop Shipment - Process Steps

• Create a Sales Order with line where the line source is External
• Book and Schedule the Sales Order
• Run Requisition Import Process
• Now the line status will be in Awaiting Receipt
• Login to the Receiving Organization (Purchasing) who has been setup as an Approver
• Run Requisition Import
• Create Purchase Order from the Requisition
• Approve the PO
• Receive the full quantity
• Run Auto Invoice
• Verify Invoice in Sales Order

Check the details here .

Things not to forget in a DropShipment

• Release 11i/12 does not support Drop Shipment across operating units.
• Blanket PO's will not used with Drop Shipment , the reason the PO must be created when OM notifies PO that a Drop Ship order has been created.
• You can't cancelled Drop Shipments once Oracle Purchasing obtains the receipt.
• Standard Items can be used for Drop Shipment.
• In 11i, PTO's and ATO's cannot be drop shipped

Similar Post on Drop Shipment

• Understand “Drop Shipment” in Order Management?
• Understand “Drop Shipment” in Order Management? -Part II
• ‘Drop Shipment’, ‘BackOrders’ and ‘Back to Back Order’ …
• Drop Shipment - Functional Setup and flow

Understand “Drop Shipment” in Order Management? -Part II:

Most of us heard about e-commerce site like ebay,ubid.com,amazon,com which is very common place in advance countries like USA, UK & Singapore where people can sell or buy there product. Have you ever think ,what is similar situation in real world , when the the word 'drop shipment' comes to your mind. ......a business situation when the retailer or trader has no stock himself, instead giving customer details directly to the seller, and then saler than fills the order and send it to customer directly.How its sounds...

Drop shipping still remains a hot topic among SCM practitioner and apps Implementer , but even though it has many benefits, it isn’t the best option for every business. I am not going to walk through the pros and cons of the process , rather would like to walk through some of the key steps and processes which exist in real world which is important to understand the concept which helps during configuration with the product.

As in one of the last post , we have seen drop shipments is a method of fulfilling sales orders by selling products without the order taker handling, stocking, or delivering the products. The seller buys a product and the supplier ships the product directly to the seller’s customer .

In other word ,drop Shipment is a process where the customer places a purchase order on a company and this company instructs its supplier to directly ship the items to the customer.

Drop shipments are done because of the following reasons:

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

Types of drop shipment

If you see the real world scenarios this can be best categorize as mainly under three heads as:

• Type 1 : Full Drop Shipment

Where the seller sends the purchase order to the supplier for the full quantity that the customer had ordered

• Type 2 : Normal Shipments and Partial Drop Shipment

Under this scenario, If the seller has only part of the quantity available for shipping to the customer, then that quantity is shipped; a purchase order is created for the remaining quantity which the seller was not able to fulfill. This is typically true for single based item.

• Type 3 : Normal Shipments and Full Drop Shipment

In this scenario, the seller ships some goods from inventory to the customer, and the other goods are always shipped from an external source (supplier).

Process Flow for Drop Shipment (Adopted from User Guide)

Drop Shipments for Standard Items

1.    Enter an order for drop ship item

2.    Book the order

3.    Run Requisition Import

4.    Create a purchase order from the requisition

5.    Approve the purchase order

6.    Receive against the purchase order

Forward drop ship flow for ATO model

1.    Enter a sales order for your drop shipped ATO model.

2.    Select your options.

3.    Schedule and book order (schedule date should default to request date for all lines).

4.    Create you configured item by progressing your order ATO Model line or running the Autocreate Configuration batch process.

5.    Verify order and line status.

6.    Create a supply order (dropship requisition) by progressing your configuration item line or running the Autocreate Dropship Requisition batch process

7.    Run the Oracle Purchasing Requisition Import to create a purchase requisition.

8.    Create a purchase order for the requisition.

9.    Approve the purchase order.

10.  Receive the purchase order.

Forward drop ship flow for ATO Item

1.    Enter a sales order for your drop shipped ATO item

2.    Schedule and book order (schedule date should default to request date for all lines).

3.    Create a supply order (dropship requisition) by progressing your configuration item line or running the Autocreate Dropship Requisition batch process.

4.    Run the Oracle Purchasing Requisition Import to create a purchase requisition.

5.    Create a purchase order for the requisition.

6.    Approve the purchase order.

7.    Receive the purchase order.

Non-SMC PTO model with drop shipped standard options

1.    Enter a sales order for your PTO model.

2.    Select options; source type on the components will default.

3.    Schedule and book the order.

4.    Run requisition import to create a purchase requisition.

5.    Create a purchase order for the requisition.

6.    Approve the purchase order.

7.    Receive the purchase order.

 Drop Shipment (Technical)

This section is going to help those who asked to provide some more granular details for drop shipment some time back.

As discussed above and in last post drop shipment is the process by which an organization takes orders from their customer and gets it fulfilled by a 3rd party. The selling organizatoin places a purchase order to teh 3rd party (supplier) who ships the ordered products to the end customer directly. There are a large number of tables that contain data related to drop ship orders. For example:

• oe_order_headers_all and lines_all (order info)
• po_requisition_lines_all, headers_all etc.( req. info)
• po_headers_all, lines_all (po info)
• oe_drop_ship_sources_all (this table contains the link between the req, po and the original order)

Moreover, there are many more tables involved in this therefore its better to have a understanding by corresponding ER diagram.

There is always a need to develop some of the custom report, therefore understanding of understanding table is very very important. Here are the same of underline tables details.

There is always a need to develop some of the custom report, therefore understanding of understanding table is very very important. Here are the same of underline tables details.

• PO_LINE_LOCATIONS_ALL
• This table stores document shipment schedules for purchase orders, purchase agreements, quotations, and RFQs.
• PO_LINES_ALL
• This table stores purchase document lines for purchase orders, purchase agreements, quotations, and RFQs.
• PO_HEADERS_ALL
• This table stores document headers for purchase orders, purchase agreements, quotations, and RFQs.
• PO_DISTRIBUTIONS_ALL
• This table stores purchase order distributions.
• PO_REQUISITION_HEADERS_ALL
• This table stores requisition headers.
• PO_REQUISITION_LINES_ALL
• This table stores requisition lines.
• PO_REQ_DISTRIBUTIONS_ALL
• This table stores requisition distributions.
• PO_REQUISITIONS_INTERFACE_ALL
• This is the Requisition Import interface table.
• OE_ORDER_LINES_ALL
• This table stores information for all order lines in Oracle Order Management.
• OE_DROP_SHIP_SOURCES
• This table stores relationships between order lines in oe_order_lines_all table and associated oracle purchasing requisitions in PO_REQUISITIONS_ALL and Oracle purchasing purchase orders in PO_LINES_ALL.
• RCV_SHIPMENT_LINES
• This table stores receiving shipment line information.

 Drop Ship @Release 12
There are no Changes in R12 for Drop Ship Flow same as R11 only

 Date flow for Drop Shipment

• Understand “Drop Shipment” in Order Management?

Reference Notes

• Note 225434.1 : Drop Ship FAQ document
• Note 130702.1 :Drop Shipments process

Order Management(OM) Integration Options

OM is one of the most complex modules in EBS, and in typical complex business model, the integration of other product or third party can't be denied. Processing an Order requires integration with many other business areas. Most integration points with other Oracle products are implemented via PL/SQL-based APIs.Here is brief discussion for Order Management EBS Integration points.

How Order Management integrated with iStore?

OM records customer orders placed via iStore, Order Capture and other CRM applications. It validates setup for shipping and payment options along with providing order status and the shipping information to customers. Once the quote is converted into an order, you can only make changes to the order through Order Management, prior to booking.

How Order Management integrated with Telesales?

Telesales' eBusiness Center has several integrations with Order Management. There is an Order tab to view order history and create new orders.

How Order Management integrated with Cost Management?

OM call the the Cost Management CST_COST_API to obtain cost from cst_item_costs or cst_quantity_layers when the Gross Margin feature of OM is enabled.

How Order Management integrated with Field Service?

Field Service Report requires specifically that you setup Price Lists, Units of Measure (UOM), and two Inventory Item Attributes in Order Management. Price Lists contain the list price for an item. Items could be material, but also labor and expenses like units of driving distance. Once material, expense and labor transactions for a task have been taken down on the Field Service Debrief, this information is updated to Charges. In Charges the list price for the item is received from Order Management and is used to generate an invoice for a customer.

How Order Management integrated with Depot Repair?

This is used by Depot Repair to create RMA and Sales Orders, validate customer accounts, and invoice customers for repairs.

How Order Management integrated with Install Base?

Information about Install Base trackable items is interfaced to Install Base in the following ways:

• Shippable Items: For both orders and returns, information is interfaced to Install Base via Inventory Interface.
• Non-Shippable Items: For both order and returns, information is interfaced to Install Base via the Order Management Fulfillment workflow activity Install Base also supports Internal Sales Order transactions by appropriately creating /updating item instances as a result of transactions between internal organizations such as pick transactions, shipments, and receipts.

How Order Management integrated with Service Contracts?

Service Contracts need to pulls information from the Install Base newly created customer records and creates an ownership record.

• Warranty: A Warranty contract is created when a Serviceable product is shipped.
• Extended Warranty: An Extended Warranty contract is created when an Extended Warranty is sold on a sales order. Oracle EAM & OM integration
• Subscription: Fulfillment starts after the contract approval process.
• RMA: Service Contracts sends Order Management RMA information

How Order Management integrated with Advanced Planning System/Global Order Promising/ ASCP?

Order Management uses Advanced Supply Chain Planning's Global Order Promising functionality to check the availability of ordered items and to schedule order lines.Scheduled Order Lines are viewed as demand by the Advanced Planning System.

How Order Management integrated with Purchasing?

Order Management integrates with Oracle Purchasing in the following functional areas:

• Return Receipts: Order Management uses the Oracle Purchasing Receipt functionality to handle Return receipts. When an item is received, Purchasing calls Order Management to indicate delivery and to get COGS information.
• Internal Orders: Oracle Purchasing uses Order Import to create internal orders.
• Drop-Ship Orders: Order Management integrates with Purchasing to fulfill drop-ship orders. It populates the PO requisitions interface table with information for order lines that need to be fulfilled via an external source.

How Order Management integrated with Bills of Material ?

This is integrated with BOM when models and kits are entered on sales orders.Normally OM uses the Bill of Material defined for the model or kit or explode the model into its components, for the purpose of the user selecting options and for shipping purposes.

How Order Management integrated with Workflow ?

Oracle Workflow is heavily used in EBS and specially to manage Order and Line processing. These PL/SQL based Workflow is a natural replacement for Order Cycles functionality. It provides a Graphical User Interfaces for defining activities, notifications, flows and viewing flow status.

How Order Management integrated with Advanced Pricing ?

OM is tightly integrated with Advance Pricing which includes price lists, modifiers, and agreements. Order Management, through its Sales Agreement functionality, creates price lists and pushes them into the Advanced Pricing tables. Order Management calls the Pricing Engine to make pricing requests during the processing of orders, and receives pricing information back from Advanced Pricing.

How Order Management integrated with Configurator ?

Order Management integrates with Oracle Configurator to support ordering and validation of configurations. The Configurator window is a Java Applet that can be launched from the Sales Order form.

How Order Management integrated with Oracle Payment ?

As we know Oracle payment is new product and OM accepts Credit Card information when entered on orders. It integrates with Oracle Payment to validate this information and get Credit Card authorizations. This information is then interfaced to Receivables.

How Order Management integrated with Receivables ?

Order Management integrates with Oracle Receivables in the following function areas:

• Invoice Interface: Order Management sends invoices and credit memos to Receivables via the Invoice Interface workflow activity. The seeded Invoice Interface - Line workflow sub-process populates the Receivables interface table.
• Receipts: Order Management calls Receivables' Receipt API to create receipts for prepaid credit card orders. Order Management receives a payment-set id from AR when the receipt is created, and then passes that id back to AR in the autoinvoice tables at invoicing time so that the invoice can be matched to the receipt.
• Tax: Order Management calls the Global Tax Engine APIs to default the Tax Code (ARP_TAX.GET_DEFAULT_TAX_CODE) and to calculate estimated tax (ARP_PROCESS_TAX.SUMMARY) for the order Line. The estimated tax value is now stored on the line and re-calculated only when any of the attributes affecting tax change. Information about the tax value is also stored as Line Price Adjustments.
• Credit Management: If the Credit Management product is installed, notifications are sent to it by Order Management when an order or line goes on credit hold, to initiate a credit review. If the credit review results in a decision to approve the order, a business event is posted which OM subscribes to and then releases the credit hold.

How Order Management integrated with Payables ?

OM accesses the AP Bank Accounts table to populate the Credit Card LOV when an order is being entered with a payment type of Credit Card. Additionally, if a new credit card number is entered and the authorization of that card through iPayment is successful, Order Management calls an AR API to create a new bank account record for the customer in the Bank Accounts table.

How Order Management integrated with Inventory Management ?

• Order Management integrates with Oracle Inventory Management through Managing Reservations.
• You can create reservations to on-hand quantities from the Sales Orders form.

How Order Management integrated with Trade Management ?

Order Management can receive RMA orders and lines from Oracle Trade Management as part of its dispute handling functionality.