Difference between "Internal" and "External" Drop-Ship
In Oracle Context External Drop-Shipping means your Oracle Order Management uses purchase orders to outside suppliers that are automatically generated from sales orders for goods supplied directly from the supplier. The “external ” supplier ships the goods directly to the 3rd Party customer and confirms the shipment through the use of an Advanced Shipment Notice(ASN).
You should take a note,Oracle uses this ASN to record a receiving transaction into inventory followed by an immediate logical shipping transaction. From these transactions, conveyance of title takes place and the customer can be invoiced and the supplier’s invoice can be processed.
where as “Internal” context Drop-Shipping functions in a similar fashion. The key difference is that no inventory transactions take place on the books of the selling operating unit; transfer of ownership of the goods from shipper to seller to customer with the only physical movement of the goods being out of the shipping organization.
Here is Functional test cases for Drop shipment
1)Enter an order for drop ship item
Responsibility: Order Management
Orders, Returns -> Order Organizer -> New
Under Main tab:
Enter Customer,Order Type and Price List. Verify that any defaulting takes place per rules setup.
Under Line Items tab:
Enter item (must be Purchasable), qty, schedule ship date. Ensure Selling Price populates correctly.
Under the Shipping tab:
Enter Source Type = External
Enter Receiving Org
Save the order.
2)Book the order
Hit the Book Order button.
The order header status should show Booked.
The order line status should be Awaiting Receipt.
This can be verified by viewing the Status field on the sales order line, or by going to
Tools -> Workflow Status
Note: If the line status does not show Awaiting Receipt, try manually progressing the order via:
Actions -> Progress Order
3)Run Requisition Import
Orders, Returns -> Requisition Import
Enter Import Source = Order Entry
Submit the request and verify the sales order. Check for Sales Order is updated with the req number or not by opening the order and going to the Line Items tab. Select Actions -> Additional Line Information
Under the Drop Ship tab you will see the requisition information.
4)Create a purchase order from the requisition
within Responsibility: Purchasing
Go to Autocreate
In the Find Requisition Lines window, enter the requisition number, clear the buyer and ship to fields and click the Find button.In the Autocreate Documents window, select the requisition line and click the Automatic button. In the New Document window,select the supplier and click the Create button. Record the PO number.
5)Approve the PO
When you are able to find Purchase Order click the Approve button.Ensure the Submit for Approval box is checked and click OK.
6)Receive against the PO
Navigate to :Receiving -> Receipts
Once you select organization, find the details by passing PO number.Now Tab through the Receipt Header window to the Lines window.Complete the details.
7)Initiate Receiving Transaction
Receiving -> Receiving Transactions Summary, In the Find Expected receipts form, enter the PO number and hit Find button.
You need to check the box to the far left of the Receiving line and enter a Subinventory.Save and verify that the concurrent program Receiving Transaction Processor completes successfully.
8) Verify the transactions
Receiving -> Transactions -> Summary
Under Supplier and Internal tab, enter receipt number and hit Find button to get the details.
9)Now Verify Sales Order status updated
Responsibility: Order Management
Orders, Returns -> Order Organizer
Find details for order number and navigate to the Lines tab, find out the detail for status , it should be 'Shipped'.Shipped Qty should be updated to reflect the full quantity ordered.
(This test cases for drop shipment flow Adopted from Metalink on reader demand.)
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"Internal" versus "External" Drop-Ship: What’s the difference?