Oracle SCM Functional Interview Questions & Answers - Order Management Module - Part VI

Oracle SCM Functional Interview Questions & Answers - Order Management Module - Part VI

Question & Answers on Drop Shipment Orders

Define Drop Shipment?

Oracle Order Management & Purchasing integrate to provide Drop Shipments.

Drop Shipments are orders for items that supplier ships directly to the customer either because stock nil or currently don't have the items in inventory, or because it's more cost effective for the supplier to ship the item to the customer directly.

How is a Drop Ship Purchase Order created?

Drop Shipments are created as Sales Orders in Order Management. Purchase Release concurrent program or workflow in Order Management creates rows in the Requisition Import tables in Purchasing. Then Purchasing's Requisition Import process creates the requisitions. Drop Shipments are marked with the Source Type of External in Order Management and Supplier in Purchasing.

Item Attributes setup required for Drop Shipment item?

Item Attributes setup steps for the Drop Ship item

How to avoid the miscounting of supply as logical organization is involved?

Drop-ship items must be received in a logical organization.

If Oracle master Scheduling/MRP and Oracle Supply Chain Planning is used to avoid miscounting supply it’s not necessary to include logical organizations in the planning. If logical organizations is included in the planning, ensure that doing so does not cause planning and forecasting complications.

If any changes are made in a Sales Order after the Purchase Order (PO) has been generated, will the order changes automatically be updated on the PO?

Order changes will not be automatically updated on the PO. Pulling up the Discrepancy report will allow to view the differences between the Sales Order and PO. However, user has to manually update the POs in the Purchasing application.

If items on a Drop Ship order are cancelled, does the system automatically generate a PO Change to the PO originally sent to the supplier?

No, user has to manually verify the discrepancy report which will report differences between the PO and the Sales Order.

Does Order Management 11i have functionality to do serial number management with Drop Shipments?

Serial numbered can be received in Drop Ship stock. Order Management will receive the serial number noted on the PO.

Can Configurable Items be Drop Shipped?

Currently only Standard Items can be Drop Shipped.

Is it possible to perform Drop Shipment across operating units?

Release 11i does not currently support this functionality.

How are over/under shipments handled in Drop Shipment?

If part of a drop-ship line ships and user do not wish to fulfill the remaining quantity, cancel the line. Over shipments must also be handled manually. If the supplier ships more than the ordered quantity, user can bill your customer for the additional quantity or request that they return the item. Use the Drop Ship Order Discrepancy Report to view differences between the drop-ship Sales Orders and their associated purchase requisitions and orders.

Is it possible to create releases based on drop shipment orders for the items in the blanket agreement when a valid Blanket PO is created?

Yes, it is possible to create releases from drop ship orders automatically or via Autocreate window, if the drop ship Requisition has the correct Blanket Information (Source)

Approved Supplier List to be set for the supplier site desired.

Depending on the hierarchy determine which assignment better suits and define sourcing rule according to the required level with the required supplier site.

Also ensure that ASL entry exists for the above supplier/site.

For automatic sourcing to be done also set profile 'PO: Allow Automatic Sourcing' to Yes so that the source document will be determined automatically depending on the creation dates and the type of the document.

Is it possible to cancel Drop Shipment after it is received?

Drop Shipments cannot be cancelled once Oracle Purchasing obtains the receipt. A user who wants to cancel a Drop Ship Sales Order line must ensure no receipts have been created against the line and that the requisition and/or Purchase Order associated with the line is cancelled. Cancellation of a Partial Drop Ship receipt is allowable. But only the portion that has not been received can be cancelled. If a Drop Shipment line is cancelled for which the entire quantity is not shipped, the order processing splits the line. The first line contains the quantity shipped and the second line contains the non-shipped quantity in backorder. Now the second line the backorder on the Sales Order can be cancelled. The PO line quantity should be changed to reflect the new quantity.

What is the Import source and status of PO generated from Drop Shipment?

Import source for the Drop Shipment orders will be Order Entry & Status of PO will always be Approved.

Can we receive a PO Shipment for which the related Sales Order Line is Cancelled / Closed?

PO Shipments for which relates Sales Order line has been cancelled or closed cannot be received. The PO shipment should be cancelled. A new Sales Order Line should be created, if needed.

Reference: Collected from various web sources

Please do refer:

http://learnoraclecsbscm.blogspot.in/2015/05/oracle-scm-functional-interview.html

http://learnoraclecsbscm.blogspot.in/2015/05/oracle-scm-functional-interview_14.html

http://learnoraclecsbscm.blogspot.in/2015/08/oracle-scm-functional-interview_22.html

http://learnoraclecsbscm.blogspot.in/2015/08/oracle-scm-functional-interview_23.html

http://learnoraclecsbscm.blogspot.in/2015/09/oracle-scm-functional-interview.html