Often customers order products that you do not typically stock but
that you do not manufacture either. You may want to purchase that item
specifically for this order, have the supplier ship it to you, and then combine
it with other items you may have purchased or stocked to create one shipment to
the customer. This is a common scenario for Wholesale Distributors who use the
S3 (Sell-Source-Ship) business model as well as for other demand channels. We
call this process ‘back-to-back orders’ or ‘procure-to-order’.
Keys to making this business process work are automating the Purchasing document creation, having accurate status of where the line is in the process, and hard reservation of the supply to the demand, so that the inventory isn’t shipped to other customers once it is received.
Important Oracle Apps OM Back to Back orders queries
Back to Back orders flow
Keys to making this business process work are automating the Purchasing document creation, having accurate status of where the line is in the process, and hard reservation of the supply to the demand, so that the inventory isn’t shipped to other customers once it is received.
The B2B process automates the creation
of a requisition and supply order (Purchase Order) when a sales order is booked
and progressed. The supply order is transmitted to the supplier; the inventory
is received from the supplier in the organization’s warehouse and shipped to
the customer.
The Back to Back orders flow in oracle Apps
in brief:
•
Enter
item on the sales orders line
•
Run
AutoCreate Requisition or Progress line on Create Supply Line – Eligible status
•
Run
Requisition Import to create the purchase requisition
•
A
Purchase Order is created and approved and sent to the necessary supplier, or a
release of a previously created Sales Agreement is used
•
Once
the PO or release is received, the items are recorded in inventory and a
reservation is automatically made to the sales order line
•
The
sales order can now be pick released, shipped and invoiced just like other
stocked item
Check
the blog post for the related setups:
Important Oracle Apps OM Back to Back orders queries
Back to Back orders flow
Navigate
to the Sales Order Window
1. Orders,
Returns > Sales Order.
2. In the
Sales Order window, enter the following details:
On the
Order Information Main Tab:
Customer
= A. C. Networks
Order
Type = Mixed
Salesperson
= Green Suzanne
On the
Line Items Main Tab:
Ordered
Item = AT23810
Qty = 2
3. Save your work and
book the order. The Sales Order Line status changes to “Supply Eligible”.
4. Click on Actions
button and select Progress Order and then select the Create Supply Order –
Eligible activity and click on OK button.
5. Now navigate to
Orders, Return > Requisition Import. Submit the concurrent program by
entering Import Source as CTO and Initiate Approval after ReqImport as Yes.
6. Now using the Tool
Menu, select Scheduling > Reservation Details and click on the OK button. In
the Item Reservation window, navigate to Supply Tab and note down the Purchase
Order number (5628) and the release number (1).
7. Now switch
responsibility to Purchasing, Vision Operations (USA), and navigate to Purchase
Orders > Purchase Order Summary. In the Find Purchase Order window, enter
the Purchase Order Number (5628) and enable the View Releases check box and
then click on the Find button. In the AutoCreate Documents window, select the
line and click on the Automatic button.
8. In the Purchase Order
Headers window, select the Release 1 and click on Open button. In the Purchase Order
Summary to Releases window, navigate to the Note to Receiver field on the
Shipments Tab, to see the Sales Order linked to the release.
9. Now you have to
receive the goods raised in PO in your inventory. Navigate to
Receiving > Receipts. In the Organizations window select
M1 and click on OK button. In the Find Expected Receipts window, enter the
Purchase Order number (5628) and click on Find button. The Receipt Header
window opens, navigate to the Receipts window and select the Line and enter the
subinventory as FGI and save your work. Change to Receipts Header form and take
note of the receipt number (23696). Now close the form.
10. Now switch
responsibility to Order Management Super User, Vision Operations (USA) and
navigate to Order, Returns > Order Organizer.
11. In the Find Orders
window enter the order number as 66437 and click on Find button. In the Order
Organizer window, click on Open button and navigate to the Lines Items tab and
you will see the Sales Order Line status has changed to Awaiting Shipping.
12. The Sales Order Line
can now be Pick Released, Shipped and Invoiced to the customer.
Back to Back order line status at various stages:
|
Action
|
line status for the B2B Item
|
|
Order Booked
|
Supply Eligible
|
|
Progress Workflow line status, select - Create Supply Order -
Eligible
|
PO-ReqRequested
|
|
Run the Requisition Import Concurrent program
|
PO-ReqCreated
|
|
Go to Purchasing and Auto Create the PO from Requisition
|
PO-Created
|
|
Go to Purchasing and Receive against the PO into
Inventory
|
Awaiting Shipping
|
