OM 12 - Drop Ship From Supplier Trainnig

OM Drop Ship from Supplier Training
Revised 02/02/2001
Application: Order Management, Purchasing
Process: Drop Ship Process
Objectives: 1. Create a Drop Ship Sales Order

2. Use the Purchase Release program to create a Requisition from the Sales Order.
3. Use the AutoCreate function to create a PO from this Requisition.
4. Approve the PO.
5. Enter a Receipt for the drop shipped goods after the Supplier sends a
confirmation.
6. Invoice the Customer.
Prerequisites: 1. Customer Order created
Table of Contents
Setup.......................................................................................3
Warehouse Setup...............................................................................3
Order and Line Workflow Setup..........................................................4
Transaction Order and Line Type Setup.............................................4
Setup Customers................................................................................6
Enter Sales Order.............................................................................11
Purchase Release & Requisition Import............................................14
AutoCreate Purchase Order.............................................................20
Enter Receipt....................................................................................27
View Purchasing Information............................................................35
Page 1 of 35
/opt/scribd/conversion/tmp/scratch6328/58847654.doc
Copyright  2000 KPMG Consulting, LLC
All Rights Reserved.
Revised 02/02/2001
Overview
The Drop Ship from Supplier process dealt with in this document has 3 major entities:
• the Customer, who orders the item(s)
• the Order Processing company, who takes the orders, and will fulfill the order by
requesting a vendor to ship the item(s) directly to the Customer
• the Supplier, who receives the Purchase Order from the Order Processing company, and
ships the item(s) to the Customer directly.
This document will use these terms whenever possible to refer to these entities.
O r d e r P r o c e s s in g
C u s to m e r C u s to m e r p la c e s o r d e r
C o m p a n y (O P C )
S u p p lie r S h ip s to
O P C p la c e s o r d e r
e n d c u s to m e r
w i t h S u p p li e r
S u p p lie r
Page 2 of 35
Revised 02/02/2001
Order Management allows you to enter drop-ship sales orders as well as standard sales orders. You
can receive orders for items that you do not stock or for which you lack sufficient inventory, and have
a supplier ship directly to your customer.
In previous releases of Oracle Order Management, an unique type and order cycles were required to be
set up prior to using drop ship functionality. With Oracle Order Management Release 11i, seeded
order workflows allow the entering of drop ship order lines and standard ship order lines to be placed
on the same sales orders. The decision whether to source internally or externally can be decided on the
line item information and can changed until the order is booked.
Setup
Prior to implementing Drop Ship, a few setup steps need to be performed:

• Warehouse Setup
• Order and Line Workflow Setup
• Transaction Order and Line Type Setup
• Receiving Organization Setup
• Customers
Warehouse Setup
When entering a receipt for Drop Ship order lines, a logical warehouse can be defined for the
Receiving organization, or a Subinventory that is only used for drop shipments can be created. A
logical warehouse can be setup to default COGS account from the Receiving Organization to segregate
the drop ship order cost from internal sourced order.
However, setting up a subinventory for drop shipments is usually good enough for most companies
implementing R2i.
Please see the INV Subinventory Definition Training document for more detail on how to set this
up.
The important differences between a Drop Ship subinventory and a regular subinventory are the
following attributes will not have the following attributes checked:
• Include in ATP
• Nettable
Page 3 of 35
Revised 02/02/2001
Order and Line Workflow Setup

The Drop Ship Order Workflow need to be set up in advance. Oracle has provided preseeded generic
workflows that should be reviewed. Please see the OM Order and Line Workflow Setup document
for further details. You may also choose to customize a workflow to meet specific business
requirements.
Transaction Order and Line Type Setup

Transaction Order and Line Types and need to be set up for each of the Order types that are set up for
drop shipment.
If the seeded workflow is assigned to the orders type, then both internally and externally sourced lines
can proceed through this workflow. The seeded workflow branches are based on Source type. If the
workflow is a custom workflow, ensure that it includes workflow steps necessary to process externally
sourced lines. If the order type has the default value for the source type field set as Vendor, all the
lines of this order will have the source type Vendor. Only standard items may be drop shipped; kits
and models cannot be drop shipped.
Depending on how the order flow is defined, you change the Source type until the line has been
booked. A Source type of ‘null’ will be treated as an internally sourced line.
Page 4 of 35
Revised 02/02/2001
Please refer to the OM Transaction Order and Line Types Setup document for more details on the
parameters that need to be set up for each Order Type.
The Drop Ship Order Flow is used where the supplier ships all order lines in the order directly to the
customer.
In the Define Transaction Type Window:

The Ship Source Type on the Order Line section should be set to Internal for the Drop Ship Only
Order Type.
The following transaction Order and Line types are recommended to implement Drop Shipments:
• Drop Ship Line
• Drop Ship Order
Page 5 of 35
Revised 02/02/2001
Setup Customers
The first step in the Drop Ship process is to enter the customer information in Oracle. This step has to
be performed whenever the Order Processing company signs up a brand-new Customer, or any
Location changes need to be entered into the Oracle system. The business process and the detailed
steps are covered in the OM Customer Maintenance Training and Process documents.
In addition, if the customer will have orders or order lines drop-shipped to one of their sites, a couple
of additional setups have to be performed.
When the Addresses are being set up, the Customer representative in the Order Processing company
must create an internal receiving location for this customer. This needs to be available in the
Purchasing module as a location for the Purchase Order that goes out to the Supplier.
Page 6 of 35
Revised 02/02/2001
In the Purchasing Super User responsibility:

Navigate to: Setup>Organizations>Locations
The Location form displays:

In the Address tab:
Enter the following information

Name: Enter a name that this site will be referred to in the system
Description: Enter a description of the Site
Address Style: Select the address style (the country that the site is in). The
default is United States. The address style determines the format
of the address that is entered.
Address: Enter the address of the Customer Ship-To site. This should be
exactly the same as the address entered in the Customer form in
Accounts Receivable or Order Management.
In the Shipping Tab:

Page 7 of 35
Revised 02/02/2001
Contact: Enter the name of a person to contact in cases of any questions.

(optional)
The Receiving Site and Ship To Site will default automatically. Check the Bill To and Internal Site
check boxes. The Receiving check box enables the location as a receiving location within Purchasing
to receive the items.
Note: This function can also be performed in the Inventory responsibility
Once the Receiving location has been set up, the Customer shipping address needs to be associated
with this internal location:
Page 8 of 35
Revised 02/02/2001
In the Other Details tab:
Inventory Organization: Select the Inventory Organization
In the Accounts Receivable or Order Management Responsibility:

Navigate to: Customers Standard
The Customers - Standard form displays.

Query the Customer being setup in this form.
Navigate to the Addresses Tab and select the address that has been setup as the Ship To location.
Select the Open button.
The Customers Addresses form displays.
In the Business Purposes Tab select the Ship To Usage.
Select the Open button.
This displays the Business Purposes Detail form:
Page 9 of 35
Revised 02/02/2001
Enter the following in the Internal block:

Location: Select the Location that was just set up in Purchasing
Organization: The Inventory Organization defaults in as it was setup for this Location
Save your work.
Page 10 of 35
Revised 02/02/2001
Enter Sales Order
The Order Representative who enters the Customer’s sales order into the Oracle system needs to enter
the source of the order lines: whether the lines will be fulfilled internally or drop shipped. If the order
lines are for items that are always Drop Shipped, the decision of which fulfillment source to choose is
simple. If the items are also stocked by the Order Processing company, the decision is not as simple.
The company has to decide the process for entering these orders.
To enter the Sales Order:

In the Order Management responsibility:
Navigate to: Orders, Returns>Sales Orders
The Sales Orders form will appear.
Complete the Sales Order with the necessary information about the customer and enter the items being
ordered in the Sales Order Lines Items tab.
Page 11 of 35
Revised 02/02/2001
Please see the OM Enter Sales Order Training document for detailed information on
entering a Sales Order.
Notes for Drop Ship Orders:

• Ensure that the Customer’s Ship To site is associated with a Purchasing Receiving
Location, as described in the earlier section.
• The Promised and Scheduled Date fields should be entered after factoring in the
Supplier’s lead time. The Customer should be promised a date that the Supplier can
meet.
For the Drop Ship line type, Order Management defaults External into the Ship
Source Type field for each line and makes available the Receiving Organization field.
Enter the Receiving Organization where the receipt of the items will be entered to
complete the purchasing cycle (even though the items will not be received physically).
The Drop Ship Line type can be combined with a standard order line type to allow for
both externally and internally fulfilled orders to be selected for a single order type.
Select Book Order to book the order once all the various details of scheduling and pricing are entered.
The Entry Status of the order changes to Booked.
Page 12 of 35
Revised 02/02/2001
Notes:
• Any lines that are being sourced Internally (i.e.: being shipped from an internal
warehouse) will follow the steps of the Standard Ship Order Cycle.
These order lines need to be picked, shipped and invoiced.
These lines can be closed without having to wait for the drop shipped lines. The steps to
process the internally sourced lines are covered in more detail in the OM Schedule Sales
Orders Training and OM Shipping with Autocreated Trips and Deliveries Training
• If there are any changes to the sales order, they will not be transmitted over to the
Purchasing module. Use the Sales Order and Purchase Order Discrepancy Report to view
differences between your drop–ship sales orders and their associated purchase requisitions and
orders.
Changes and Cancellations of sales orders or sales order lines are handled in the same way as
regular sales orders. The only change in process is that the person making the changes to the
sales order in Order Management needs to be aware that changes will need to be made in
Purchasing for any order lines that have been Purchase Released. If this is not done, run the
above report to see the discrepancies, and update the Purchasing information as necessary.
Page 13 of 35
Revised 02/02/2001
Purchase Release & Requisition Import

The Purchase Release program passes information about eligible drop ship-order lines to Oracle
Purchasing. The Purchase Release program is equivalent to the purchase release workflow activity.
You only need to use the Purchase Release program if you have customized the workflow associated
with the transaction type to make all the lines eligible for purchase release and then want to pick up the
lines. The generic order and line flow that is preseeded with Oracle, includes a purchase release
deferred activity. Deferred activities are processed by the workflow background process, which should
be scheduled to run periodically by your system administrator. See the Define Workflows setup
document for additional information on Workflow.
The Purchase Release program does not process orders or order lines with unreleased holds. Any
holds on orders or order lines must be removed before the Purchase Release program can process the
order lines. As part of the Order Processing company’s procedures, holds on sales orders should be
reviewed on a regular basis to ensure orders are not held up for an inordinate amount of time.
Before running Purchase Release, you should ensure that the Ship-To locations referenced on your
orders have been associated with receiving locations defined in Oracle Purchasing. If the Purchase
Release program fails to identify a receiving location that matches the ship-to location for an order
line, Purchase Release will not process the line.
Page 14 of 35
Revised 02/02/2001
To run the Purchase Release program manually, or to set up the schedule:

Navigate to: Orders, Returns > Purchase Release
The Purchase Release form displays:
The schedule for these programs can be set up and they can be run in the background without anyone
having to physically run these programs. This is achieved by selecting the Schedule button.
Clicking on the Parameters field in the Purchase Release row, the Parameters form displays, (the
flexfield that contains the parameters for the Purchase Release concurrent program): (please see next
page)
Page 15 of 35
Revised 02/02/2001
Following is the parameter window for the purchase release program.
Enter the following information:

Order Number Low/High Select an order number or range, or leave this parameter blank to
run the program on eligible lines on all orders. (optional)
Request Date Low/High Select a range of order request dates, or leave this parameter
blank to select all periods for the program. (optional)
Customer PO Number Select the number that corresponds with the purchase order
received from your customer. (optional)
Ship To Location: Select a Ship To Location to release Orders for a specific Ship To
Site. (optional)
Order Type Select a specific order type. (optional)
Customer Select the customer associated with the order. (optional)
Item Limit processing to a particular item. (optional)
Page 16 of 35
Revised 02/02/2001
After Purchase Release has completed successfully, run Requisition Import to generate purchase
requisitions for the processed order lines.
The Requisition Import process is used to import requisitions from Oracle Order Management or
non-Oracle systems. Requisition Import creates a requisition line and one or more requisition
distributions for each row it finds in the interface table. It then groups these lines on requisitions
according to parameters that you define.
In the Purchasing Super User responsibility:

Navigate to: Reports>Run
Enter Requisition Import in the Submit Request window.

The following parameter screen opens up:
Page 17 of 35
Revised 02/02/2001
Enter the following information:

Import Source: Entering a specific source imports lines from that source.
However, if there are no lines in the Interface table there will be
no import source to choose in this field. (This can happen if the
only source for requisitions imported is from Order Entry, and
since the Purchase Release program has not run yet, no lines have
been placed in the Interface Table)
Import Batch ID: Enter an ID for a specific batch to import. (optional)
Group By: Select the option to group lines on the Requisitions that are
created. The default is specified in the Purchasing Options form.
The options are:
All: Group all requisition lines on one
requisition.
Buyer: Group requisition lines for each buyer on a
the same requisition
Category: Group requisition lines for each purchasing
category on a separate requisition
Item: Group requisition lines for each item on a
separate requisition
Location: Group requisition lines for each location
on a separate requisition
Supplier: Group requisition lines for each supplier
name on a separate requisition
Last Requisition Number: Enter the last number that exists in the system. This number is
incremented to calculate the next requisition number. If this
number is in use, the next available number is assigned. If blank,
the first available number is assigned automatically.
Multiple Distributions: Select No
Page 18 of 35
Revised 02/02/2001
Each requisition you create using Requisition Import enters Purchasing with the approval status that
was specified when the row in the interface table was created.
When the Requisition Import Process completes in Error, run the Requisition Import Exception Report
to get detailed error messages.
Page 19 of 35
Revised 02/02/2001
AutoCreate Purchase Order
The next step in the process is for a Buyer to convert the purchase requisition created by the Purchase
Release and Requisition Import programs into a new Purchase Order or append it to an existing
document. This is achieved by performing the “AutoCreate” Purchase Order function.
The “AutoCreate” process minimizes the amount of data entry needed to create or modify a purchase
order or blanket release from an approved requisition.
In the Purchasing Superuser responsibility:

Navigate to: AutoCreate
The Find Requisition Lines form will appear. In the Find Requisition Lines form enter your
requisition line search criteria to find approved requisition lines to create into purchase orders. You
can enter the requisition number or search for all eligible requisition lines.
Click on the Find button to run the query.
The query returns the AutoCreate Documents form:
In the AutoCreate Documents form:
Select the line by clicking on the checkbox in front of the line. You can also use Select All or Deselect
All from the Edit drop down menu to select or deselect all of the lines.
The selected lines will be highlighted in light blue:
Page 20 of 35
Revised 02/02/2001
Action: Select Create to create a new document for the requisition lines. Select
Add To to append the requisition lines to an existing document.
Document Type: Select a document type to create.
Grouping: Select Default to combine requisition lines for the same item, revision,
line type, unit of measure, and transaction reason onto one new
document line. Select Requisition to create a document with one line for
each requisition line. The Requisition option should only be used when
you have queried lines from a single requisition source.
Click on the Automatic button to automatically perform the Action chosen.
Page 21 of 35
Revised 02/02/2001
If Action is Create then the New Document form displays:
If supplier information is defined for the requisition line(s) copied then the Supplier and Supplier Site
fields will default from the requisition lines.
Else, select the Supplier and the site from where the Supplier will ship the items.
Click on the Create button.
A message displays, letting you know if the “AutoCreate” was successful. This message also displays
the number of the new document created.
Page 22 of 35
Revised 02/02/2001
The AutoCreate to Purchase Orders form will display:
The Purchase Order created will show the lines selected grouped into one line if it is for the same item,
or into multiple lines if the requisition lines selected were for different items.
The form has the data filled out, and the data should be changed only if required. However, the
following fields cannot be changed:
• You cannot change the Document Type.
• If the “Enforce Buyer Name” option in the Purchasing Options is set to “Yes”,
your name is displayed as the Buyer, and you cannot change this value.
• You cannot change a line type.
• You cannot change a line item.
• You cannot change the charge account for a line.
Note: Prior to approving the Purchase Order, the price of the item should be reviewed. This price is
the same as the Item list price defined for the item in the Item Definition in Inventory. If the list price
is not defined there, the item price in the Purchase Order will be set to $0. Even if the price is set at the
item definition, it might have changed, or else, a markup needs to be factored in.
Page 23 of 35
Revised 02/02/2001
Check and make sure that the Receipt Routing for the Shipments for the lines is set to Direct Routing.
To set this variable,
Select the Shipments button.
The Shipments form displays.
Notice the ship to site from the drop ship order has automatically come over from Order Management.
The Purchase Order will have the Ship To address of the Customer, so the Supplier can ship out the
items to the customer directly due to the Internal Location/Customer Ship-To association.
Select the Receiving Controls button.

The Receiving Controls form displays:
Page 24 of 35
Revised 02/02/2001
The Receipt Routing field should be set to Direct Delivery. If not, select from the list of values.
Next, select the Approve button.
Page 25 of 35
Revised 02/02/2001
The Approve Document form displays where the Submit for Approval radio button is selected.
Select the OK button.
The purchase order will move through the approval workflow and the status will change to Approved if
the purchase order is approved. If the purchase order is approved it is now ready to be received
against.
Note: R2i does not have an approval hierarchy set up and the Document Types are defined so that the
preparer can approve his own document. If an approval hierarchy is set up and used you can do the
following:
1. The completed purchase orders can be submitted to an approver for approval through a
hierarchy.
2. The approver can use the Approve Documents form to approve, forward, reserve,
accept or reject submitted purchase orders. Before approval, the P.O. can be viewed or
modified by the approver. A rejected request returns to the requester.
The Forward option allows an approver to forward the selected document awaiting approval to
a new approver.
3. Purchase Orders returned as not approved can be modified by the requester and re-
submitted for approval. The requestor can also cancel the document though the control options
in the Purchase Orders Summary form.
At this time the Purchase Order can be sent out to the Supplier to fulfill the Order.
Page 26 of 35
Revised 02/02/2001
Enter Receipt
The Supplier ships the items to the Customer and sends a confirmation of the shipment back to the
Order Processing company. This confirmation can be sent electronically in the form of an Advance
Shipment Notification (ASN), or by on paper (mail or fax).
This confirmation notification triggers off the receipt process at the Order Processing company. This
receipt is entered not for a physical receipt, but for the items shipped to the customer.
Tip: Receiving should run the Expected Receipts Report daily to preview anticipated receiving
activity and to have a physical document available to record information about the actual goods
received on. This information will need to be entered into the system later.
To enter the Receipt, in the Purchasing responsibility:

Navigate to: Receiving> Receipts
The Find Expected Receipts window appears:
In the Find Expected Receipts window, enter any search criteria desired to find expected receipts
against approved Purchase Orders, such as the purchase order number.
Page 27 of 35
Revised 02/02/2001
Click on the Find button.

Note: Clicking on Find without entering any parameters will cause ALL expected receipts to show in
the Receipts window.
The Receipts Header window will open. If you are entering a receipt against an Advance Shipment
Notice (ASN), the header information may already be entered for you if the supplier sending the ASN
provided that information.
In the Receipts Header window:

New Receipt: Check the “New Receipt” radial button if this is a new receipt. (default)
Add To Receipt: Check the “Add To Receipt” radial button if these receipt lines are to be
appended to an existing receipt. The system will ask you to select an
existing receipt to be appended.
Receipt: If the “Add To Receipt” is checked then the receipt number of the receipt
being appended will display in this field. Otherwise this number will be
created when the received lines are saved.
Receipt Date: Enter a Receipt Date. This field will default to today’s date.
Shipment: Enter the Supplier Shipment Number. (optional)
Shipped Date: Enter the date the Supplier shipped the material. (optional)
Packing Slip: Enter a Packing Slip number. (optional)
Waybill/ Airbill: Enter a Waybill or Airbill number. (optional)
Freight Carrier: Select an active Freight Carrier from the List of Values. (optional)
Bill of Lading: Enter a Bill of Lading. (optional)
Containers: Enter the number of containers. (optional)
Page 28 of 35
Revised 02/02/2001
Received By: Select the name of the person receiving the items. This defaults to the
employee logged on to the system but it may be overwritten.
Supplier: Enter the name of the supplier. The supplier name on the receipt must
match the name of the supplier on the purchase order that you are
receiving against.
Comments: Enter any additional comments about this receipt. (optional)
Behind the Receipts Header window lies the Receipts window. Purchasing displays all of the
shipments that meet the search criteria you entered in the Find Expected Receipts form here.
Click on the underlying Receipts window.
The lower part of the Receipts window displays the detail information for the current shipment line:
Order Type, Order Number, Supplier (Source), Due Date, Item Description, Hazard class, Destination,
UN Number, Receiver Note, and Routing type.
This information defaults from the purchase order that the shipment lines are on.
Page 29 of 35
Revised 02/02/2001
Under the Lines tab:

Check Box: Enter a check in the box next to the line you want received.
Note: The system will not let you receive lines against a purchase order
that has a different supplier than the supplier you entered on the receipt
header. If the line you select contains information in the ASN Type
field, then an Advance Shipment Notice (ASN) exists for that shipment.
You can set an ASN Control option in the Receiving Options window to
prevent you from receiving against a purchase order shipment for which
an ASN exists.
Quantity: Enter the quantity received for the line selected. The shipment quantity
displays as the default. R2I has the “Over Receipt Tolerance” set to zero.
This means that the quantity received must be less than or equal to the
shipment line quantity.
UOM: Defaults from the item in the purchase order line. If you change the
UOM then the quantity will change to reflect the change in the Unit of
Measure.
Destination Type: Defaults from the purchase order. It can be changed to “Receiving”.
Doing this changes the one step receipt process into a two step process.
Item: Defaults from the purchase order shipment line.
Rev: Defaults from the purchase order shipment line.
Description: Defaults from the item description.
Location: Defaults to the location defined on the purchase order. If the location on
the receipt line does not match the location on the corresponding
purchase order shipment line then the line can not be received.
Requestor: Defaults to the Requestor on the purchase order.
Subinventory: Enter a subinventory to deliver Inventory items to.
Locator: Enter a Locator to deliver the items to. (optional)
In R2I, locator control is turned off and this field will be greyed out.
Category: Defaults from the item category on the purchase order.
ASN Type: If an Advance Shipment Notice (ASN) exists for this shipment then the
ASN Type is displayed here.
Optionally, further details can be entered under the Details Tab:

Packing Slip: Enter the packing slip number.
Supplier Lot: Enter the Supplier Lot number.
Reason Code: Enter a Reason Code for this receipt line.
Comments: Enter any comments for this receipt line.
Receipt Exception: Select Receipt Exception if you want to enter a release exception for this
receipt.
Page 30 of 35
Revised 02/02/2001
After checking all of the lines to be received and entering the appropriate receipt information, Save
your work.
If this receipt was a New Receipt, then after saving your work the system generates a Receipt Number
for this receipt.
Click on the Header button to return to the Receipts Header window.
The new receipt number generated will be displayed in the “Receipt” field.
When the receipts are saved, the items received are delivered to the specified subinventory.
Note: Although you are not physically receiving the quantity, this receiving transaction is to record the
ownership transfer. You need to perform the Receiving activity after the supplier notifies you the
product has been shipped. The Receiving function will also update the drop-ship order status and
make the sales order eligible to bill the customer.
At the same time, the Sales Order in Order Management is automatically updated to reflect the
transaction. The Shipped Quantity field shows the quantity just received in the Receipt transaction.
The Line flow status for the Sales Order lines should Fulfilled.
Once a receipt is entered, this creates inbound (Receipt) and outbound (Sales Order issue) material
transactions in Oracle Inventory. So, there are two transactions for every line received: One adds to
the inventory, and the other decrements from the same place. The Materials Transactions manager in
Inventory will pick these up from the Inventory Material Interface table, and update the on hand
quantities the next time it runs according to its schedule.
To view these transactions in the Inventory responsibility:

Navigate to: Transactions > Material Transactions
Page 31 of 35
Revised 02/02/2001
Enter the appropriate search criteria to pull up your drop ship order transaction such as your item and
the correct date and click the Find button.
Page 32 of 35
Revised 02/02/2001
The inventory transactions for your drop ship order are the following:
An inventory receipt which incremented inventory with the quantity received. Since
the items are not physically being received, but are being received by the drop ship
customer an offsetting transaction will take place. This offsetting transaction is the
sales order issue transaction, which will issue the items back out of inventory.
Now, these lines are ready to be invoiced. Schedule the Invoicing Activity from the Workflow
Generator in System Administrator and then run AutoInvoice from Oracle Receivables to Invoice
customer. Also, any landing or special charges imposed by the supplier for the drop shipment can be
passed to the customer. Freight and Special charges can be imposed automatically.
Page 33 of 35
Revised 02/02/2001
Changes and Cancellations
The Sales Order in Order Management and the Requisition or Purchase Order in Purchasing
(depending on the status of the order in Purchasing) are not tightly integrated.
What this implies is that when a change to the Sales Order occurs due to changes to the original order
placed in the Order Management module, the changes do not carry over to the Purchasing module once
the Purchase Release program has run.
Prior to the Purchase Release running, making necessary changes (change or cancellation) to the Sales
Order only will change the data in the Sales Order. These changes will not be transmitted over to the
Purchasing module. Use the Sales Order and Purchase Order Discrepancy Report to view
differences between your drop–ship sales orders and their associated purchase requisitions and orders.
Changes and Cancellations of sales orders or sales order lines are handled in the same way as regular
sales orders. The only change in process is that the person making the changes to the sales order in
Order Management needs to be aware that changes will need to be made in Purchasing for any order
lines that have been Purchase Released. If this is not done, run the above report to see the
discrepancies, and update the Purchasing information as necessary. The report shows the following
differences between the document in the 2 modules:
• Order quantity, Ship-to location
• Due date, promise date, schedule date
• Cancellation of order or line
• Hold placed on an order/line Purchase Order quantity
• Purchase Order item
Further details of the process for a change to a Sales Order can be found in the OM Change Sales
Order Process, OM Cancel Sales Order Process and the OM Cancel Sales Order Training
documents.
Page 34 of 35
Revised 02/02/2001
View Purchasing Information

Once the Purchase Release and Requisition Import programs have run successfully, a Purchase
Requisition should be created in the Purchasing module. To view the Purchasing information for this
order:
Navigate to Orders, Returns> Orders Organizer This displays the Find Orders form.
Enter the Order Number or any other set of criteria to bring up the orders to view. Select the Find
button. The Sales Order form displays.
Select the order to be viewed, and select the Lines items tab.
Choose Actions button and Select Additional Line Information
Select the Drop Ship tab:
The Purchasing Information displays:
At this point, the view only form displays the Requisition Number for the Order Lines, and the status
that the lines are in.
To view the actual Purchase Order, choose the Purchasing button .
Page 35 of 35

OM 12 - Drop Ship From Supplier Trainnig

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

OM 12 - Drop Ship From Supplier Trainnig

Uploaded by

Copyright:

Available Formats

OM Drop Ship from Supplier Training

Application: Order Management, Purchasing

Process: Drop Ship Process

Objectives: 1. Create a Drop Ship Sales Order

Prior to implementing Drop Ship, a few setup steps need to be performed:

Order and Line Workflow Setup

Transaction Order and Line Type Setup

In the Define Transaction Type Window:

In the Purchasing Super User responsibility:

The Location form displays:

Enter the following information

In the Shipping Tab:

Contact: Enter the name of a person to contact in cases of any questions.

In the Other Details tab:

Inventory Organization: Select the Inventory Organization

In the Accounts Receivable or Order Management Responsibility:

The Customers - Standard form displays.

Enter the following in the Internal block:

Save your work.

Enter Sales Order

To enter the Sales Order:

The Sales Orders form will appear.

Notes for Drop Ship Orders:

Purchase Release & Requisition Import

To run the Purchase Release program manually, or to set up the schedule:

Following is the parameter window for the purchase release program.

Enter the following information:

In the Purchasing Super User responsibility:

Enter Requisition Import in the Submit Request window.

Enter the following information:

AutoCreate Purchase Order

In the Purchasing Superuser responsibility:

The query returns the AutoCreate Documents form:

In the AutoCreate Documents form:

Click on the Automatic button to automatically perform the Action chosen.

If Action is Create then the New Document form displays:

The AutoCreate to Purchase Orders form will display:

Select the Receiving Controls button.

Next, select the Approve button.

To enter the Receipt, in the Purchasing responsibility:

The Find Expected Receipts window appears:

Click on the Find button.

In the Receipts Header window:

Click on the underlying Receipts window.

Under the Lines tab:

Optionally, further details can be entered under the Details Tab:

To view these transactions in the Inventory responsibility:

Changes and Cancellations

View Purchasing Information

To view the actual Purchase Order, choose the Purchasing button .

You might also like