DescriptionL
In Back to Backorder, the shipment process is also completed through OM as a standard order after the item is received against a PO
This order type applies when customer orders a product which you do not stock or manufacture.
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In turn customer places the order, you place the order with supplier and after the shipment from the supplier, and you distribute the product to the customer.
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Below is the flow chart for B2B process flow:
STEP 1: Item Creation for Back 2 Back orders
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Item: Prism
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Copy the Purchasing template.
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Purchasing Tab: List Price : $15, Used Approved Supplier © enable
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General Planning Tab: Source Type : Supplier, Make or Buy : Buy
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Order Management Tab: Assemble to Order © enable.
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Assign to our inventory.
STEP 2: CREATE APPROVED SUPPLIER LIST
Invoking: Order Management →Purchasing→ Supply Base→ Approved Supplier List
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Lets create an Approved supplier List for the item we created (Prism).
STEP 3: Create Sourcing Rule
Invoking: Order Management →Purchasing→ Supply Base→ Sourcing Rule
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We are going to create Sourcing Rule as: Prism_Sourcing.
Step 4: Assign Sourcing Rule
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Query the ”Supplier Scheduling Assignment” set by using F11 key & paste our item, Sourcing rule as below.
STEP 5: BOOK SALES ORDER
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Now book the sales order and the status of the line will be Supply Eligible.
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Select the Supply Eligible text →Right Click→Progress Order→OK
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Now the status will be changed to External Req Requested as below.
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Now run the Workflow Background Process from View→ Request
STEP 6: Requisition Import
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Switch the responsibility to Purchasing and Run Requisition Import from View→ Request
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Select Import Source as CTO.
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Here Requisition Import and Create Releases Program runs and view the output, so that we can make sure that the releases has been processed successfully as below.
STEP 7: QUERY REQUISITION
Invoking: Purchasing→Requsitions→ Requisitions Summary
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Now query by the item: Prism (we created) and create the REQ as below.
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Now if you check the sales order line status it will be External Req Open.
STEP8: AUTOCREATE PURCHASE ORDER
Invoking: Purchasing→Purchase Order→ Purchase Order Summary
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Now let’s create a purchase order with the req # we created.
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Now if you check the status of the sales order after creating PO, it will be PO Open.
STEP 9: Taking Receipt
Invoking: Purchasing→ Receiving → Receipts
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Corresponding order # created:
|
Sales Order |
10007 |
|
Requisition |
15950 |
|
PO |
6605 |
|
Receipt |
23707 |
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Here we took the receipt for the PO created and moved to the Sub Inventory FGI and status will be changed to Awaiting Shipment as above.
STEP 10: PICK Release/ Ship Confirm
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From here we can do normal Pick up release transaction in order to ship the order from inventory to Customer.
Invoking: Order Management→ Shipping→ Release Sales Order
Invoking: Order Management→ Shipping→ Transactions
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Running Workflow background Process.
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Final status of order closed, which means the order has been shipped to the customer.
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This completes the Back 2 Back order flow.
DROP SHIP Order Flow
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Drop Ship is mere similar to Back 2 Back order except the supplier directly ships the order to customer rather than our inventory.
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Below is the flow chart for your reference.
All steps are similar except two changes:
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Source type as External in sales order line
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Import source as ORDER ENTRY while executing Requisition Import
STEP 1: SALES ORDER CREATION
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Let’s start with placing a new sales order.
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Follow similar steps as Back 2 Back orders.
Progressing Supply Eligible
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Running Workflow Background process.
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Now the status of the sales order line will be Awaiting Receipt.
STEP 2: Requisition Import
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As discussed before, mention Import Source as ORDER ENTRY as below.
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From here we follow P2P cycle.
Querying REQ, PO, taking Receipt as below.
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Corresponding # created:
|
Sales Order |
10008 |
|
Requisition |
15951 |
|
PO |
6606 |
|
Receipt |
23708 |
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Now if you check the status of the sales order line it will be shipped.
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Run the workflow background process.
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The status will be closed which means the order has directly been shipped to customer rather than transferred to our inventory.
Different line Status of the Sales Order:
|
SL NO |
PROCESS |
BACK 2 BACK METHOD |
DROP SHIP METHOD |
|
1 |
SALES ORDER BOOKING |
SUPPLY ELIGIBLE |
SUPPLY ELIGIBLE |
|
2 |
PROGRESSING SUPPLY ELIGIBLE |
External Req Requested |
Awaiting Receipt |
|
3 |
CREATING REQUSITION |
External Req Open |
Awaiting Receipt |
|
4 |
CREATING PURCHASE ORDER |
PO Open |
Awaiting Receipt |
|
5 |
TAKING RECEIPT |
Awaiting Shipment |
SHIPPED |
|
6 |
After Performing O2C CYCLE |
CLOSED |
Not Applicable directly send to the Customer CLOSED |
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This completes the explanation about BACK 2 BACK METHOD & DROP SHIP METHOD in Oracle EBS R12.
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