Oracle Order Management Configuration

Oracle Order Management

(Source: Oracle User & Implementation guides) 

Oracle Order Management focuses on improving the speed of manually entering sales orders and processing large volumes of sales orders in bulk, increasing the accuracy in our order fulfillment processes, improving collaboration with customers and suppliers and increasing the flexibility of our order fulfillment business processes.

Oracle Order Management is integrated with Oracle Inventory to sale the finished products and it is integrated with Oracle Receivables for booking the accounting for these transactions.

Configuration Steps

1.     Define Sales Order Flexfield

The Sales Order Flexfield is a key flexfield used by Oracle Inventory to uniquely identify sales order transactions which interfaces to Oracle Inventory.

Sales Order Flexfield should be defined as Order Number, Order Type and Order Source. This combination guarantees each transaction to Inventory is unique.

We have to define this flexfield before placing demand or making reservations in Oracle Order Management.

We have to set up the OM: Source Code profile option to determine the source code we will use in for the third segment of this flexfield to guarantee that each transaction is unique. (Oracle Inventory defaults the value of the OM: Source Code profile option to ‘ORDER MANAGEMENT’.)

Navigation path: Order Management>Setup>Financials>Flexfields>Key>Segments

2.     Price List

Price lists are essential to ordering products because each item entered on an order must have a price. Each price list contains basic list information and one or more pricing lines, pricing attributes and secondary price lists. Basic information includes the price list name, effective dates, currency, pricing controls, rounding factor and defaulting sources such as payment terms, freight terms and freight carrier. Price lists can contain item and item category prices. We can define and maintain multiple price lists.

We can define the following types of prices on price lists:

  • Unit price: A fixed price.
  • Percent Price: A price (only for a service item) which is a percent of the price of another item.
  • Formula: Multiple pricing entities and constant values related by arithmetic operators. For example, price of an item to be a percentage price of another price list line. Only static formulas are used in Basic Pricing.

Navigation path: Order Management>Pricing>Price List Setup

3.     Profile Options

Set following 3 Profile Options for Oracle Order Management.

GL Ledger Name as relevant user

HR: User Type as “User”

AR: Create Bank Charges as “Yes”

Navigation path: System Administrator>Profile>System

4.     OM System Parameters

Parameters in the Oracle Order Management Parameters window can be functionally grouped and we can define controls as easily as defining profile options. OM System Parameters allows us to define new parameters and setting up the values for the parameters using different sources like SQL and constant values.

Create and define parameters using the following attributes:

  • Parameter Code: Unique code for the new parameter
  • Name: Name of the parameter
  • Description: Description of the parameter
  • Category: Category the parameter belongs to. The category is controlled using the lookup type “OM_PARAMETER_CATEGORY.” To create a new category, add the lookup code in the lookup type “OM_PARAMETER_CATEGORY” and then enter that lookup type in your parameter definition window.
  • Value Set: Value Set associated as the source of values. The possible value sets can have validation types of NONE or TABLE. For seeded parameters please make sure that you use a value set that begins with “ONT.”
  • Open Orders Check: Provides a control to allow or restrict changes to the parameter value once it is set for a given operating unit.
  • Enabled: Controls the availability of the parameter. For seeded parameters this field is active for internal users.
  • Seeded: Indicates whether the parameter is seeded or user-defined. This is only active for internal users.

Navigation path: Order Management>Setup>System Parameters>Define

5.     OM System Parameter Values

We can set up parameter values at the operating unit level by specifying following attributes:

  • Operating Unit: Select the operating unit from the available list of values for which parameter values are to be set.
  • Category: Select the category. On selection all the parameters for the selected category display.
  • Show All: Check this to see all the parameters of all the categories.
  • Parameter: Displays the name of the parameter for the selected category.
  • Value: Parameter value of the parameter. This field shows a list of values based on value set attached with the parameter definition.
  • Description: Displays description of the parameter currently selected.

Note: If Multi-Org Access Control is enabled, you can manage System Parameter values across all Operating Units accessible to you via your MO: Security Profile.

Navigation path: Order Management>Setup>System Parameters>Values

6.     Credit check rule

The ultimate goal of Credit Management processes is to minimize the financial risk that your organization assumes as a result of day-to-day operations. Order Management’s credit checking feature is the process by which orders are validated and released against your credit checking business rules. Using credit rules, system parameters and credit profiles, Order Management credit checking verifies that the customer has sufficient credit availability with our organization to allow orders to be processed and shipped in advance of payment.

Order Management enables to perform credit checks on customer orders or order lines and automatically hold orders or lines that violate the credit setup. Using Order Management credit checking effectively requires a complete understanding of the functional components as well as a careful consideration of timing and performance factors.

Navigation path: Order Management>Setup>System Parameters>Define

7.     Define Release Rule Form

We can create default pick release rules that are applied at pick release in the Release Sales Orders window. Each rule can be set up with its own set of unique pick release parameters depending on the pick release criteria required.

When pick release is run, the pick release is performed based on the parameters set up in the selected pick release rule. For example, you can create a specific rule that pick releases only backordered lines.

 

Note: Although we can also enter the pick release criteria at pick release time without creating a rule, creating a rule is more efficient if we frequently run the same pick release.

Navigation path: Order Management>Setup>Shipping>Picking>Define Release Rules Form

8.     Release Sequence Rule

We can define release sequence rules to specify the order in which eligible picking lines are allocated to Inventory during pick release. We can release the picking lines by:

  • Order number
  • Outstanding Invoice Value
  • Scheduled Date
  • Departure Date
  • Shipment Priority

We can assign a priority level to one or more attributes with 1 being the highest priority and 5 being the lowest. We can also define whether we want the picking lines released in ascending or descending order.

Navigation path: Order Management>Setup>Shipping>Picking>Define Release Sequence Rules

9.     Pick Slip Grouping Rule

We can create grouping rules to organize how picking lines for released sales orders are grouped on to pick slips. For example, if we select Delivery as a grouping criteria, all picking lines for the same delivery are grouped together on a pick slip. If there are multiple deliveries, multiple pick slips are created.

We can also define grouping criteria further by selecting additional grouping attributes. For example, if we select Delivery and Carrier as grouping criteria, picking lines for the same delivery and carrier are grouped together on a pick slip.

Navigation path: Order Management>Setup>Shipping>Picking>Define Pick Slip Grouping Rules

10.   Ship Confirm Rule

Ship confirm is the process of confirming that items have shipped. When you ship confirm a delivery, Shipping Execution confirms that the delivery lines associated with the delivery have shipped.

Ship Confirm Rule offers a way to default the shipping options automatically. It eliminates the task of selecting the shipping options individually.

Note: A ship confirm rule is defaulted from the shipping parameters for the organization or from client parameters for the client.

Navigation path: Order Management>Setup>Shipping>Ship Confirm Rules

11.   Shipping Parameters

We define the default values for basic shipping information such as units of measurement, pick release rules, weight and volume calculations and delivery grouping rules. Shipping parameters are organization specific.

The parameters are arranged into the following tabbed regions in the Shipping Parameters window:

General: We can define the shipping weight and volume unit of measure classes, criteria for calculating percent fill basis like weight, volume, or quantity and shipping events at which export compliance screening will be performed. (Screening is only applicable if Oracle Shipping Execution is integrated with a third party ITM partner application).

Pick Release: We can define Release Sequence rules and Pick Slip Grouping rules, limiting the number of lines in the pick slip, printing behavior, document set to be printed at pick release, default staging subinventory, locator and decision points to autocreate delivery, auto allocation, enforcing ship sets and ship models and task planning at the time of pick release.

Shipping Transaction: We can define document sets to be printed at the time of ship confirm, ship confirm rule, auto-pack options, goods dispatched (COGS) account and whether to enforce packing in containers.

Delivery: We can define the attributes forming the basis of delivery grouping for the organization. We can also specify if delivery grouping is limited to lines within the same sales order or across orders. For consolidation of deliveries, we specify the event at which appending will stop for the appending of delivery lines to the delivery stops.

Navigation path: Order Management>Setup>Shipping>Shipping Parameters

12.   Global Parameters

Global General parameters enable you to define miscellaneous parameters, Oracle Workflow parameters and unit of measure (UOM) defaults for all of your organizations.

Navigation path: Order Management>Setup>Shipping>Global Parameters

13.   Line types

Transaction Type is used to define transaction types for sales documents, including both order and line types. Define your line types first. We should define line types for both order lines and return lines.

Navigation path: Order Management>Setup>Transaction Types>Define

14.   Order types and associate with Line Type

Definition of transaction types is required in Oracle Order Management. Transaction Types provide default information for sales documents such as orders, quotes, and sales agreements, and establish process controls with Oracle Workflow.

There are transaction types associated with both order types and line types. Order numbers are now controlled by assigning a unique document sequence to your order transaction type. Creating document sequences and assigning them to order transaction types are two separate steps in Order Management, and neither can be done directly from the transaction types window.

Note: Sales Agreements only use automatic numbering.

Navigation path: Order Management>Setup>Transaction Types>Define

15.   Document sequence assignment to order types

A document sequence uniquely numbers documents generated by an Oracle E-Business Suite product. Using Oracle E-Business Suite, you initiate a transaction by entering data through a form and generating a document. A document sequence generates an audit trail that identifies the application that created the transaction and the original document that was generated. Document sequences can provide proof of completeness. For example, document sequences can be used to account for every transaction, even transactions that fail. Document sequences generate audit data, so even if documents are deleted, their audit records remain.

Navigation path: System Administrator>Application>Sequential Numbering>Define

16.   Shipment Document categories

We can create a document category for shipping documents such as a bill of lading (BOL) and assign it to a location or all locations. We can create more than one document category for a document, for example, if we want each carrier to have its own Bill of Lading number series, we can set up a unique document category to accommodate this requirement.

We must define a category for each bill of lading and packing slip we wish to create. We can create a bill of lading category for each ship method/carrier or define a single bill of lading category for all. When we use a different bill of lading sequence for each carrier, we can easily identify the carrier by looking at the bill of lading number.

In addition, we can tie a category to a specific location and have a different BOL sequence for the same carrier departing from a different location. For example:

  • For a Trucking Co. Freight shipment departing from warehouse 1, the bill of lading number is WH1-12345-Trucking Co
  • For a Trucking Co. Freight shipment departing from warehouse 2, the bill of lading number is WH2-55466-Trucking Co

When defining a document sequence for the packing slip, we can create a category for every location or one category for all locations. The document category is specific to a document type and location. The document category is also specific to the application and responsibility from which we accessed the form. If we create a document category called Viking BOL for WH1 in responsibility Oracle Order Management Super User, we must be working as Oracle Order Management Super User to have visibility of this category when assigning document sequences to it.

Navigation path: Order Management>Setup>Shipping>Documents>Document Categories

17.   Document sequence assignment to Shipping categories

A document sequence uniquely numbers documents generated by an Oracle E-Business Suite product. Using Oracle E-Business Suite, you initiate a transaction by entering data through a form and generating a document. A document sequence generates an audit trail that identifies the application that created the transaction and the original document that was generated. Document sequences can provide proof of completeness. For example, document sequences can be used to account for every transaction, even transactions that fail. Document sequences generate audit data, so even if documents are deleted, their audit records remain.

Navigation path: System Administrator>Application>Sequential Numbering>Define

18.   Shipping document set

We can group related shipping documents and other reports in a set that can be printed at pick release or ship confirm. We can include a variety of shipping documents in a set such as a Bill of Lading and Packing Slip Report and determine the print sequence.

Shipping Execution provides three pre-defined (seeded) document sets:

  • All Pick Release documents: We can set the default Pick Release Document Set in the Pick Release tab of the Shipping Parameters window
  • Ship Confirm documents: We can set the default in the Document Set field of the ship confirm window
  • Pack Slip only (at ship confirm): We can set the default in the Document Set field of the ship confirm window

Note: We can create additional document sets based on your business needs.  

Navigation path: Order Management>Setup>Shipping>Documents>Document Sets

19.   Freight carriers, Freight cost, Ship methods

A freight carrier is a commercial company that transports shipments to and from customers, suppliers, and internal organizations. We must set up each carrier’s information as a party in Oracle Shipping Execution before shipping goods. We should assign a carrier to each delivery. We also must associate a general ledger account with each carrier to collect associated costs.

Before setting up the carriers:

  • Collect general information about each carrier
  • Determine the types of services that your carriers offer and that you use

Navigation path: Order Management>Setup>Freight Carriers, Cost, Types

20.   Shipping tolerances

Shipping tolerances are based on customers and items or customer site and item tolerances.

Navigation path: Order Management>Setup>Shipping Tolerances

21.   Shipping Roles

Shipping Execution enables you to define new roles by selecting the data access controls you want. You can define a new role by:

  • Copying an existing role: An existing role can be copied to create a new role. The copied role has the same data access privileges of the original, but if desired, these privileges can be edited for the new role. Save the new role with a different name than the original.
  • Manually defining a new role: You can create a new role in the Shipping Execution Role Definition window by selecting the data access controls to trips, stops, lines, and deliveries. Save the new role with a unique name.

Once you have created the new role you can assign it by grant to a user.

Note: In an environment that does not have Oracle Transportation Execution installed, five privileges related to Oracle Transportation Execution are grayed out in the Shipping Execution Role Definition window. The following privileges are strictly related to Oracle Transportation Execution, and therefore, do not apply if this application is not licensed: Send Outbound Message, Select Carrier, Get Freight Costs, Cancel Ship Method, and View Message History.

Navigation path: Order Management>Setup>Shipping>Grants and Role Definitions>Define Roles

22.   Shipping Grants

You can grant a user a role in one organization or all organizations for a period of time. The role is assigned to a user by a grant. The grant is specific to a particular user and defines the role(s) assigned to the user, the organization where the grant is effective, the start date and optionally, an end date.

More than one grant can be assigned if the user requires different access controls to more than one organization. The start and end dates for grants can overlap.

For example, if a user requires full-access privileges to three organizations and view-only access to a fourth, the user must be assigned four grants–one for each respective organization (three full-access and one view-only grant). However, if only one grant is assigned, that grant becomes the default grant for the user.

In addition, the grant has the following requirements:

  • A grant may or may not have one inventory organization selected.
  • Many grants can be assigned for each role.
  • A user can have one or more grants. If the user does not have any grant (expired, effective, or future), the default is view-only access to all organizations. If the user has grants, the user’s access is controlled by the effective grants. If there are overlapping grants in the same organization or an intersection of grant date ranges, the union of grant privileges controls the user’s access.
  • A grant cannot be designated as the default grant.

A role can be assigned to a user that spans all organizations instead of granting a unique grant per organization. If an organization is not specified, the grant is applicable to all organizations.

Navigation path: Order Management>Setup>Shipping>Grants and Role Definitions>Grants

 

After the configuration of these steps  we are able to make entries in Oracle Order Management.

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