Chapter 5. Selling Items to Customers in Order Management

In this chapter, we will cover:

• Creating customers

• Entering sales orders

• Adding Items to Price List

• Reviewing Order Management workflow

• Creating Drop Ship orders

• Creating Back-to-Back orders

• Creating a return

• Applying holds

• Releasing orders

• Shipping orders

• Creating an invoice

Introduction

Oracle Order Management is used to capture and fulfill orders from different sources. These include entering orders manually, importing orders from XML Gateway, CRM, online orders through EDI, Oracle iStore, and Oracle Quoting. Fulfillment of the order can be through making, buying, or selling through stock in inventory. Oracle Order Management uses workflow, which can be customized to drive the process.

The following diagram summarizes a typical Order Management process:

1. 1. The Customer enters the order from an external source. An order entry clerk can also enter the order.

2. 2. The order is imported into Order Management and checked for validity.

3. 3. The order is...

Introduction

Oracle Order Management is used to capture and fulfill orders from different sources. These include entering orders manually, importing orders from XML Gateway, CRM, online orders through EDI, Oracle iStore, and Oracle Quoting. Fulfillment of the order can be through making, buying, or selling through stock in inventory. Oracle Order Management uses workflow, which can be customized to drive the process.

The following diagram summarizes a typical Order Management process:

1. 1. The Customer enters the order from an external source. An order entry clerk can also enter the order.

2. 2. The order is imported into Order Management and checked for validity.

3. 3. The order is accepted, after it is checked.

4. 4. The Items on the lines are validated in inventory and a price is calculated for the line.

5. 5. The availability of the Items are checked and may be reserved, purchased, or manufactured.

6. 6. The order is booked ready to be picked and shipped to the Customer.

7. 7. The Items are picked, packed, and...

Creating customers

Before we can sell Items, we need customers. In this recipe, we will look at how to create customers. We will create a customer called Sheepwall Inc with an address called a site. The site can be used as a bill to, ship to, and deliver to address.

Getting ready

Log in to Oracle E-Business Suite R12 with the username and password assigned to you by the system administrator. If you are working on the Vision demonstration database, you can use OPERATIONS/WELCOME as the USERNAME/PASSWORD.

How to do it...

Let's create a customer:

1. 1. Select the Order Management responsibility.

2. 2. Navigate to Customers | Standard.

3. 3. Click on the Create button.

4. 4. In the Customer Information region, enter SheepWall Inc in the Organization Name.

5. 5. In the Account Information region:

   • Select DEFAULT as the Profile Class

   • Select External as the Account Type

6. 6. In the Account Site Address region:

   • Enter United States in the Country field

   • Enter 12 Sheep Gate in Address Line 1

   • Enter Philadelphia in the County...

Entering sales orders

Orders can be imported from an external source, for example, a web order can be interfaced with Order Management. Sheepwall Inc. has requested to purchase an ACME laptop (Item number PRD20007 held in inventory). The laptop comes with a special warranty (Item number PRD99999 a service Item). In this recipe, we will enter a sales order for Sheepwall Inc. with two lines.

Getting ready

Log in to Oracle E-Business Suite R12 with the username and password assigned to you by the system administrator. If you are working on the Vision demonstration database, you can use OPERATIONS/WELCOME as the USERNAME/PASSWORD.

We also need the Item to be created in Inventory.

How to do it...

Let's list the steps required to create the order:

1. 1. Select the Order Management responsibility.

2. 2. Navigate to Orders, Returns | Sales Order.

3. 3. Select the Main tab.

4. 4. Enter SheepWall Inc in the Customer field, the Ship To Location and the Bill To Locations are automatically populated.

5. 5. In the Order...

Adding Items to price list

Items sold to our customers need to have a price. And the price is added to a price list. In this recipe, we will add an Item to a price list.

Getting ready

Before an Item can be added to a price list, we need to have an Item.

How to do it...

Let's add an Item to a price list:

1. 1. Navigate to Purchasing | Advanced Pricing | Price Lists | Price List Setup.

2. 2. Press the F11 function key to enter the Query Mode.

3. 3. In the Name field, enter Corporate and press Ctrl and F11 key.

4. 4. The details of the Corporate Price List are displayed.

5. 5. In the List Lines tab, click on the Product Context field.

6. 6. Click on the New icon.

7. 7. Select Item in the Product Context field.

8. 8. Select Item Number in the Product Attribute field.

9. 9. In the Product Value field, enter PRS10000.

10. 10. Select YR as the UOM.

11. 11. In the Value field, enter 500.

12. 12. Save the record.

How it works...

Order management uses a pricing engine to determine the price of an Item based on rules set up in Advanced Pricing. When...

Reviewing Order Management workflow

The workflow engine is used to control the processing of orders. And the type of order will determine the workflow that is called. Though seeded workflows are available with Oracle Order Management, you can customize a flow to suit your particular business requirements.

How to do it...

Let's view the progress of an order using workflow:

1. 1. Select the Order Management responsibility.

2. 2. Navigate to Orders, Returns | Sales Order.

3. 3. Press the F11 function key to enter the Query Mode.

4. 4. In the Order Number field, enter 66400 and press Ctrl + F11.

5. 5. Select the Line Items tab.

6. 6. Select Line number 1.1.

7. 7. From the menu, select Tools | Workflow Status.

8. 8. Click on the Status Diagram link on the left navigation or the View Diagram button to view the progress of the order.

How it works...

The flow of the order is controlled by a workflow. This is represented in a diagram format behind the scenes. The workflow engine manages the route for the processing of an order...

Creating Drop Ship orders

Some Items are not usually held in stock and can only be ordered when required by the supplier.

In this recipe, we will enter an order for a special Item not held in Inventory and raise a purchase order to the supplier to deliver the goods directly to the customer.

Sheepwall Inc. wants to purchase an ACME Special Laptop (PRD20006). We don't hold stock for the Item in Inventory, but we order it directly from Acacia Office Supplier, who will send it directly to our customer.

In this recipe, we will also use the Quick Sales Order Entry form to enter the sales order.

How to do it...

Let's list the steps required to create the Drop Ship order:

1. 1. Select the Order Management responsibility.

2. 2. Navigate to Orders, Returns | Quick Sales Order.

3. 3. In the Cust Name / # field, enter SheepWall.

4. 4. In the Order Type field, enter Mixed.

5. 5. Select the Ordered Item field in the Main tab and enter PRD20006.

6. 6. Enter 2 in the Qty field.

7. 7. Select the Shipping tab and change the Source...

Creating Back-to-Back orders

Customers may request Items that are not in stock and need to be ordered from a supplier to replenish stock.

In this recipe, we will create an order for goods that are not in stock, but need to be ordered from a supplier.

How to do it...

Let's list the steps required to create the Back-to-Back order:

1. 1. Select the Order Management responsibility.

2. 2. Navigate to Orders, Returns | Quick Sales Order.

3. 3. In the Cust Name / # field, enter SheepWall.

4. 4. In the Order Type field, enter Mixed.

5. 5. Select the Ordered Item field in the Main tab and enter PRD20008.

6. 6. Enter 2 in the Qty field.

7. 7. View the ATO box by selecting Folder | Show Field and select ATO in the displayed field.

8. 8. Ensure that the ATO box is checked.

9. 9. Click on the Book Order button.

10. 10. The defaulting rules are used to populate the details of the order.

11. 11. The order is booked.

12. 12. The Order Line is also in the status of booked.

13. 13. The Status is now Supply Eligible.

14. 14. Right-click on the line and select Workflow...

Creating a return

Items can be returned to the business from the customer based on a number of reasons, for example, damaged goods. In this recipe, we will look at how to enter the details or a returned Item. The customer needs to return one of the laptops (PRD20006) on Order 66417.

How to do it...

Let's list the steps required to create a return:

1. 1. Select the Order Management responsibility.

2. 2. Navigate to Orders, Returns | Sales Order.

3. 3. Enter the SheepWall in the Customer field.

4. 4. Select the Order Type of Return Only.

5. 5. Enter ACME Corporate in the price list.

6. 6. Select the Lines Items tab.

7. 7. In the Ordered Item field, enter PRD20006.

8. 8. In the Qty field, enter 1, the value changes to -1, to represent a return.

9. 9. Select the Returns tab and enter Damaged Product in the Return Reason field. Note that the Line Type is Return (Receipt).

10. 10. Save the record.

11. 11. Click on the Book Order to book the order number 66420.

12. 12. The line Status has now progressed to Awaiting Return. Once the goods have...

Applying holds

Computer Service and Consulting have a poor credit history and we have decided to suspend the account until this is fully reviewed. In this recipe, we will create an order for Computer Service and Consulting where the customer has been suspended.

How to do it...

Let's suspend the customer:

1. 1. Select the Order Management responsibility.

2. 2. Navigate to Customers | Standard.

3. 3. Enter Computer Service% in the Name field and click on the Go button.

4. 4. Click on the Computer Service and Consulting link.

5. 5. In the Accounts tab, select the details icon on the 24 North Avenue, BURLINGTON, MA 01803 line.

6. 6. Select the Profile tab.

7. 7. Select Account Status as Suspended.

8. 8. Ensure that the Credit Check and the Credit Hold checkboxes are enabled.

9. 9. Click on the Apply button.

10. 10. Click on the Save button.

Let's now create a standard sales order for the customer:

1. 1. Select the Order Management responsibility.

2. 2. Navigate to Orders, Returns | Sales Order.

3. 3. Enter Computer Service and Consulting in...

Releasing orders

Goods ordered by our customers need to be allocated and moved from the warehouse in preparation for shipping to the customer.

The key steps in the process are as follows:

• Run Pick Release for booked orders

• The orders are allocated and moved from the Subinventory and dropped into the staging area before shipping

In this recipe, we will look at how to release the order for shipment to our customers.

Getting ready

We will need a booked order that has the goods available in Inventory, with sales order lines in the Awaiting Shipping status before we can release the order for shipping.

How to do it...

Let's list the steps required to complete the task:

1. 1. Select the Order Management responsibility.

2. 2. Navigate to Shipping | Release Sales Orders.

3. 3. In the Release Sales Orders for the Picking form, enter Standard in the Based On Rule field. The Document Set field is auto populated.

4. 4. In the Order Number field, enter 66414, and the Customer name; and the Order type is automatically populated...

Shipping orders

Goods allocated and picked from the warehouse need to be packed and shipped to our customers.

The key steps in the process are:

• Find the order eligible for shipping

• The orders are then confirmed ready for shipping "Ship confirmed" the quantities in Inventory are adjusted based on the order and the sales order line are updated

In this recipe, we will look at how to create the shipment to our customers.

Getting ready

We need a booked order that has Picked status before we can ship the goods to our customer.

How to do it...

Let's list the steps required to complete the task:

1. 1. Select the Order Management responsibility.

2. 2. Navigate to Shipping | Shipping Transactions.

3. 3. When the Query Manager window opens, enter 66414 in the fields From Order Number and To Order Number.

4. 4. Change the Line Status field to blank.

5. 5. Click on the Find button to find the order.

6. 6. The Shipping Transactions window opens to display details of the order. The line status is Staged/Pick Confirmed and the...

Creating invoices

The customer needs to be invoiced for the goods. In this recipe, we will run Autoinvoice for all outstanding sales orders and view the generated invoice for the order number 66414.

Getting ready

The order needs to be shipped before we can create the invoice.

How to do it...

Let's create the invoice for all outstanding sales orders.

Let's list the steps required to complete the task:

1. 1. Navigate to Receivables | Interfaces | AutoInvoice.

2. 2. In the Submit a New Request form, click on the OK button.

3. 3. In the Autoinvoice Submit Request form, select Autoinvoice Master Program.

4. 4. Select the Import source of ORDER ENTRY in the import source field.

5. 5. Enter 07-Feb-2011 in the Default Date field.

6. 6. Leave the defaults for all the other fields.

7. 7. Click on the OK button.

8. 8. Click on the Submit button.

   Viewing the invoice details for order 66414.

9. 9. Navigate to Orders, Returns | Quick Order Organizer.

10. 10. In the Order Number field, enter 66414.

11. 11. Click on the Find button. The Order details...