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In order to set up Oracle Order Management, there are some mandatory and optional steps. Most of the information that is required while setting up Oracle Order Management is shared through other modules. Some common features include the following:
- Inventory organization
- Key and descriptive Flexfields
- Unit Of Measure (UOM)
- Price list
- Picking rules
System options are the key values that are used for setting up Oracle Order Management Suite. These parameters contain a list of values that should be used as per our business requirement. We can see some common parameter values in the following figure:
Profile options are the system profiles that we assign as per our requirement. These profiles fulfill critical business requirements. We can use these profiles on four different levels, as follows:
Document sequence is used for generating sequential number for orders. Using the document sequence an automatic document sequence number will be generated. These document numbers are user defined. We can identify from where new document sequencing should take place and where it is going to end. Also, we can have a unique number sequence for a particular time period.
Using the document sequence, we differentiate our document sequencing for sales order documents. We can assign these document sequences to particular transaction types. Each transaction type has its own document sequence numbering.
In the Name field, we will give a unique name for the number sequence. Select the application for which the document sequence will be working, and enter start and finish dates from when to when this sequence will be applicable. If we want to keep this document sequence for an unspecified period, then we will keep the To field blank. For automatic number generation, select the Type as Automatic.
For the assignment of the document sequence, we will again select Order Management in Application field, which we have selected at the time of defining the new sequence. In the Category field, we will select the order type for which we require the document sequence. In the Ledger field, select the ledger and select Automatic in the Method Type field.
Under the Assignment tab, we will again select the sequence that should be used for the transaction type and the Start Date from when this template would be applicable.
We use transaction types to manage different types of sales order. These transaction types can be according to business requirements (how we want to differentiate our orders). There are various options for which we can classify a new transaction type, as follows:
- Export sales
- Local sales
Workflows are assigned to transaction types. We can assign price lists, payment terms, invoicing rules, and the inventory organization from where the items against the order would be picked and shipped.
To create a new transaction type in Oracle Order Management, navigate to Setup | Transaction Types.
Here we will give the name of the new transaction type such as Standard Order Type and so on. Now we will attach the Fulfillment Flow and Negotiation Flow to this transaction type. We will also assign an effective date to this transaction type in order to start working from that date. Also, we can assign the price list and the picking rule to this transaction type.
Now under the Shipping tab, we will provide the information for the Warehouse from where the inventory should be picked. We can also leave that blank if we have specified that at the picking-rule level or we can specify that at the order-entry level.
We can specify the FOB field. We can attach the transaction type freight terms, as well as specify the shipping method at Transaction Type level.
Under the Finance tab, we enter information that would be required in Oracle Accounts Receivable at the time of invoice creation. We can also specify the account for Cost of Goods Sold (COGS) at the Transaction Type level; else we have the option to pick from the Inventory Organization.
Invoice Source type will be the source type used for invoices interfaced to Accounts Receivable. We can also specify a particular invoicing rule for the transaction type.
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(For more resources on Oracle, see here.)
In Assign Line Flows, we assign the workflow to the transaction type line. These workflows are updateable and we can create a new workflow and disable the previous one by giving it an end date.
After assigning the workflow, the next step is to allow the approvals for this particular transaction type that we have created, as shown in the next screenshot:
Now in the Approval section, we will enter a new approval list name in the List Name field and description in the Description field. Select the Transaction Type for which we are allowing the members to select the workflow negotiation of fulfillment as per requirement. Negotiation flow is a header-level flow, while the fulfillment flow is a line-level flow. If we select the negotiation flow, the values for all the lines will be according to the negotiation as it is at the header level and cannot specify a flow for order lines.
Picking and shipping
Now we have to create the shipping parameter. We will describe what Weight UOM Class and Volume UOM Class would be. In the same manner, we will specify workflow and Pick Release options, such as what is the stage sub-inventory, how the deliveries would be created, and so on.
Navigate to Setup | Shipping Parameter.
Under the Shipping Parameter, we will select the classes for Weight and Volume and the UOMs of the respective classes.
(Move the mouse over the image to enlarge.)
Now in the Pick Release section, we will select the Release Sequence Rule for orders. Here we have an option for pick slip grouping, using Pick Slip Grouping Rule we can control the pick slip generation. We can create pick slips for individual orders or we can generate a single pick slip for a bulk of sales order. We can also define the staging sub-inventory and the options such as manual and auto-create deliveries.
We can also create our own pick rules which we can group by different grouping criteria as seen in the previous screenshot, such as Order Number, Customer, Delivery, Sub Inventory, and so on.
Now, under the Shipping Transaction tab, we need to attach the shipping rule and the documents that would be generated at the time the "Ship Confirm" takes place in Oracle Order Management.
In Inventory Management, we define these picking rules according to the picking requirement of the organization. These rules elaborate on where the goods are picked from in the warehouse and allocation is created for the sales order. There are many ways we can pick our inventory out from the warehouse. For example:
- Lot numbers
- Sub inventory
Lot numbering allows us to allocate our inventory in the following ways:
- FEFO (First Expiry First Out)
- FIFO (First In First Out)
- Ascending Lots
- Descending Lots
In the same manner, we can allocate the sub-inventories in ascending and descending orders. We can also allocate inventory by item locator. For example, first pick up an item from the ascending locator and then from the descending locator.
After creating the transaction type, now we have to specify the users who will be accessing this shipping execution form and who can create the Pick Releases, Deliveries, Ship Confirm, and so on. Using the Grant User function, we can assign a super-user grant to a single user as well as control the task according to the assigned roles by editing the assigned roles.
Now, if we do not want to assign the full responsibility to a single user, we can edit this role as per our business process requirement and we can assign single as well as multiple functionality access to a single user. This is possible using the Data Access controls.
Under the Trips tab, we can view the list of options that can be granted to our users. For example, the Launch Pick Release option will control the rights of creating deliveries. We can also assign and revoke functions using the Grant Control Data Access form.
In this article we learned how to set up Oracle Order Management.
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