Posted on July 4th, 2007 by Sanjit Anand || Email This Post
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Order Management allows you to enter drop-ship sales orders as well as standard sales orders.
It means you can receive orders for items that you do not stock or for which you lack sufficient inventory, and have a supplier provide the items directly to your customer.
The best can be described as:
These are the following activity takes place when you have drop shipment
- Supplier
- Warehouse Item
- Ship order
- Shipment notification
- Order Entry
- Enter customer
- Enter order
- Demand order (optional)
- Cancel order (optional)
- Close order
- Purchasing
- Create and send Purchase Order
- Enter shipment notification in system
- Receivables
- Create invoice
- Collection of payment
- Receipt
hence, drop ship order items ship directly from a supplier to the customer of the order processing company. A purchase requisition, then a purchase order, is generated to notify the supplier of the requirement. After the supplier ships the order, it notifies Purchasing to enter this information in the Purchasing module.
What are the advantages of Drop Shipment Orders?
These are the benefits:
- No inventory is required
- Reduced order fulfillment processing costs
- Reduced flow times
- Elimination of losses on non-sellable goods
- Elimination of packing and shipping costs
- Reduced inventory space requirements
- Reduced shipping time to your customer
- Allows you to offer a variety of products to your customers
How to understand the dataflow for Drop shipment Orders?
To understand, here are the processes divided in sub process and the underline activity is highlighted here:
Here are the Details as per Mark
1.Order Entry
Here the activity is entering process where oe_order_headers_all (flow_status_code as entered) oe_order_lines_all . The order is booked as DROP SHIP
2. Order Booking
3. The Purchase Release program passes information about eligible drop-ship order lines to Oracle Purchasing.The interface table which gets populated is
po_requisitions_interface_all
4. After Purchase Release has completed successfully, run Requisition Import in Oracle Purchasing to generate purchase requisitions for the processed order lines. The Requisition Import program reads the table po_requisitions_interface_all validates your data, derives or defaults additional information and writes an error message for every validation that fails into the po_interface_errors table.The validated data is then inserted into the requisition base tables po_requisition_headers_all,po_requisition_lines_all,po_requisition_distributions_all.Then use autocreate PO fuctionality to create purchase orders and then perform receipts against these purchase orders
7. After the goods are successfully received invoices for vendors are created in accounts payables as in normal purchase orders.
8. Invoices are generated for customers In account receivables.
9. oe_order_lines_all (flow_status_code ‘shipped’, open_flag “N”)
10. oe_order_lines_all (flow_status_code ‘closed’, open_flag “N”)
Hope this is great help to understand the flow.
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September 26th, 2007 at 11:51 pm
Excellent… god blase u…
October 17th, 2007 at 5:56 pm
Love your work!!! Absolutely useful.
November 9th, 2007 at 7:07 pm
d
November 13th, 2007 at 2:41 am
[…] can also see technical details for drop ship cycle in my earlier […]
December 23rd, 2007 at 12:31 am
Wonderfully compliled and best thing about this that it is made for better and easy understanding.
Appreciate the efforts taken.
December 27th, 2007 at 7:11 am
thanks santosh
January 7th, 2008 at 11:06 pm
Too good. It is very helpfull
January 8th, 2008 at 4:40 pm
Hi.. You guys r really doing good. Its the good way to learn as you people explaining along with with TABLES. I believe one should allways learn along with TABLES. otherwise no use
January 10th, 2008 at 4:16 pm
Very good Sharing
March 18th, 2008 at 11:28 am
Extraordinary work bro…keep it up
April 3rd, 2008 at 8:52 am
very helpful !!!
April 7th, 2008 at 1:05 am
[…] in one of the last post , we have seen drop shipments is a method of fulfilling sales orders by selling products without […]
May 6th, 2008 at 12:17 pm
Its a Very Nice Article.
Very Very Helpful. Thanks.
June 7th, 2008 at 2:36 am
Hi,
This is a very good info.Great work.
July 9th, 2008 at 10:49 pm
Great stuff……guys.
I appreciate your piece of work..
:) :)
July 17th, 2008 at 2:38 am
In Back to Back Order , How can we find the PO linked to an SO.?
September 3rd, 2008 at 11:26 pm
Hi Sanjit,
Can we know the Accounting entries happening at each step?
Maybe an example with some values will be really great.
Thanks in advance. Jaya
September 15th, 2008 at 2:57 am
[…] the details here […]
September 17th, 2008 at 6:06 am
[…] Understand “Drop Shipment” in Order Management? […]
November 10th, 2008 at 2:56 am
Hi,
Can you explain
1. how to create multiple POs for diff. suppliers (as in the sourcing rules)for a drop ship sales order
2. How does MRP treat a drop ship sales oder?
Thanks in advance!
March 7th, 2009 at 12:22 am
fantastic,thank you so much
April 5th, 2009 at 3:47 am
Good information about dropshipping keep up the good work.
July 17th, 2010 at 12:59 pm
Good One and Thank you.
August 5th, 2010 at 6:32 pm
very nice description
November 11th, 2010 at 5:27 am
really good,,looking 4 screenshots as it would be more helpful.
November 23rd, 2010 at 9:40 am
Thank you Thank you Thank you very much for such a wonderful material.
January 27th, 2011 at 11:49 pm
Really good, thanks for sharing
May 30th, 2011 at 8:38 am
good work, Thanks
November 15th, 2011 at 12:35 am
Really very nice post and worthfull for all apps aspirants
Thanks