Oracle R12 Order Management - Drop Shipment Order Flow

Oracle Order Management – Drop Shipment Order Flow

Drop Shipment order type is used for when a customer is urgent need of an item and which is not an inventory stocked item or when the stock is not available and customer requires large quantity. If it is more economical to ship the goods directly from supplier to customer.

Prerequisite:

Drop Shipment item should be

1. Customer ordered, customer orders enabled, Shippable, OE Transactable & Default SO Source Type should be “External” in Order Management tab and Purchased & Purchase order enabled in Purchasing tab

2. Sourcing Rule & Approved Supplier list should be defined for the Drop Shipment Item

Drop Shipment Flow:

Create a sales order, line source type should be External

Once the sales order is entered, the line status will be “Entered”

Once the sales order is booked, the workflow will be deferred. And the line status will be “Booked”

Run the “Workflow Background Process” program, once the program is completed the line status will be “Awaiting Receipt”

Run the “Requisition Import” program from the Purchasing Responsibility with parameter Source as ORDER ENTRY and Initiate Approval after ReqImport as Yes.

Once the Requisition Import program is completed, query the sales order and in additional information, Drop Ship tab, PO / PO requisition details would be displayed.

If you query the sales order in shipping transaction form, no details will be available.

 

Go to Purchasing --> Autocreate, Query the requisition and create the PO Document and approve the same.

Once the PO release is created, query the sales order and in additional information, Drop Ship tab, PO details would be displayed.

When shipment confirmation is received, enter a receipt in Purchasing, even if the drop-shipped item is not transactable. This creates inbound and outbound material transactions in system for accounting purposes.

Once the item is received, the sales order line status will be “Shipped”

After system's inventory has a record of the transaction, run the workflow background process, Receivables Interface and AutoInvoice programs to generate an invoice for customer.

Please note below the sales order line status for each activity in Drop Shipment order flow in Oracle Order Management: