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The Newbie’s Jumpstart with Oracle OM

Posted on March 12th, 2012 by Sanjit Anand ||Email This Post Email This Post

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Hello I’m a newbie…advice please! where do i start from. I need a guide. I’m enthusiastic and want to learn Oracle Apps/Om. Can you help me out?

These are the questions reader frequently asking, therefore thought to create some post that helps newbie .To start with here to go with OM first.

The first thing you need to understand what is Oracle OM application.

Oracle Order Management lets you record the customer information you need to ship to, bill to and collect from your customers accurately. With Oracle Order Management, you define the business functions for which you want to record customer information.

Any company who use OM can get benefits with these basic and advance need for order processing in the organization :

  • Enter orders
  • Indicate when an order is complete and ready for further processing.
  • Enter as many order lines as you want.
  • Enter sales credits for an entire order or an individual order line.
  • Enter orders in different currencies.
  • Assign as many discounts as you want to an order.
  • Import Sales Orders and Returns
  • Schedule Orders
  • Copy existing orders to create new orders, returns or replacement orders.
  • Easily cancel orders and order lines.
  • Apply and Release Holds
  • Close Orders

Oracle Order Management leverages the Oracle Workflow engine to flexibly model and execute any sales order process. The application provides flows for capture, book and invoice right out of the box. The flexible workflow framework makes it easy to add additional steps that are specific to your business. For example, a step can be added if special approval is required or if routing is dependent on characteristics of the order. With Oracle Order management, you can easily create and execute workflows that enforce your best order management practices.

OM is part , Oracle Order Management Suit which consist of:

  • Oracle Shipping Execution
  • Oracle Configurator
  • Oracle Advanced Pricing
  • Oracle Release Management and e-Commerce Gateway

Modules that support Oracle Order Management

  • Oracle Inventory
  • Oracle Bill of Material
  • Oracle Receivable
  • Oracle Purchasing
  • Customer Relationship Management suit

Order Capture From Any Source

  • Oracle Telesales
  • Oracle I-Store
  • Oracle Marketing
  • Oracle Service
  • Oracle Field Sales
  • Oracle Trade Promotion

Next lets understand different types of order.

The Internal Requisition/Internal Orders process is used for requesting and transferring material from one inventory location to another. An Internal Requisition is initiated in Oracle Purchasing. Sourcing rules can automatically determine if the source type is to be Inventory or an external supplier. Order Management receives information from the Purchasing Application to create an Internal Sales Order. When the sales order is shipped (to indicate either intra or inter-organization movement of goods), the requisition can be received to record receipt of goods.

To generate Internal Sales Order user has to follow the following process steps:

  • Enter Requisition in Oracle Purchasing & Approve the Internal Requisition
  • Run ‘Create Internal Sales Order’ Process for transferring requisitions to Order Management.
  • Run ‘Import Order’ Process in Order Management to create Sales order.
  • Release Sales Order
  • After Order Import completes successfully, book, pick and ship the internal order.
  • Receive against the Internal Requisition.

For more details you can go through these posts.

Drop shipments occur when your customer orders product from you, you order the product from your supplier, and your supplier ships the product directly to your customer.

Order Management sends information to the Purchasing Application to create that PO, and then when that PO is received (to indicate shipment from the supplier to your customer), the order line is automatically updated to indicate that it was fulfilled.

To generate Internal Sales Order user has to follow the following process steps:

  • Create a Drop Ship Sales Order
  • Use the Purchase Release program to create a Requisition from the Sales Order.
  • Use the AutoCreate function to create a PO from this Requisition .
  • Approve the PO .
  • Enter a Receipt for the drop shipped goods after the Supplier sends a confirmation.
  • Invoice the Customer

Required Setup:

  • Logical Warehouse to receive drop shipment
  • Order Type/Line Type for drop shipment order
  • Defaulting rules to make the source type External

For more details you can go through these posts.

Order Management also provides sophisticated tracking of your return material authorizations (RMA).

Returns from a customer occur for a variety of reasons including damage, shipment error, or sampling. Return material processing functionality enables you to manage customer expectations while controlling inventory receipts and customer credit processing.

These are RMA Types:

  1. RMA with Credit Only : This is where your company issues a credit without the customer returning the product.
  2. RMA with Repair :This is where your customer returns a damaged product. Your company repairs and returns the product to the customer.
  3. RMA with Replacement :This is where your customer returns a product and your company sends a replacement product rather than issuing a credit.
  4. RMA With Receipt and Credit :in this senario , customer returns a product and receives credit.
  5. Returned Item Fails Inspection (Exception case) : This is senario , where Your customer returns product, Company inspects product and rejects it. Company scraps product or sends product back to Customer. In this case, you have the option of performing an RMA transaction of type:
  • RMA with Repair
  • RMA with Replacement
  • RMA with Receipt and Credit.

Process Flow of RMA is very simple, but some time getting complex .

  • Create RMA Order using sales order window in Order Management
  • Book RMA Order
  • Receipt the RMA using receipts window in Purchasing
  • Check the on hand quantity of the item in Inventory to verify that correct quantity was received
  • Generate credit memo in Accounts Receivable (If Applicable)
  • View the credit memo in order management
  • Check the shipped and fulfilled quantity on the RMA line


Managing Return Material Authorization (RMA)

Credit Check

  • Automatically check credit during order entry and pick release
  • Flexibly define customer open balance calculations
  • Set customer limits per order and for all orders
  • Assign tolerances to single-order and total-order limits

Credit Checking Limits Hierarchy

Credit Limits can be set at the following 5 levels which is called as Credit Checking Limits Hierarchy

  1. Item category level
  2. Site level
  3. Customer level /Customer account
  4. Party level (This level is applicable only if Credit Management is installed)
  5. Operating Unit Default level.

You should be familar with a term called, Pre-Calculated Exposure . In Oracle use of Pre-Calculated Exposure was incorporated to improve performance. Previous versions of credit checking calculated customer exposure accessing underlying transactional tables. When a credit check request was executed, underlying transaction tables were summed to generate customer balance information.

If you ref to Note.293409.1, its mention, Using the pre-calculated exposure option, credit checking will validate exposure against balance information stored in a summary table. The summary table is updated as often as your business practices require, and updates to the table are performed by submitting the Initialize Credit Summaries concurrent program. This program accesses both Oracle Receivables and Order Management transactional tables. It should be scheduled to run periodically, based on your specific business needs.

In order to trigger automatic Credit checking on sales orders it is necessary that the credit checking is enabled for the order type, customer profile and payment terms associated with the transaction.

Credit check set up involves the following setup steps:

  • Step1:Credit Check Rules Setup
  • Step2:Customer Profiles Setup
  • Step3:Payment Terms Setup
  • Step4:Order Types Setup

For more details you can go through these posts.


  • Mix returns and shipments on the same order
  • Enter return receipts using standard Oracle receiving forms
  • Enter expected lot and serial number for returned goods
  • Print acknowledgements for returns
  • Track returned goods for repair using new Depot Repair Process

As mention earlier, OM is one of the most complex modules in EBS, and in typical complex business model, the integration of other product or third party can’t be denied. Processing an Order requires integration with many other business areas. Most integration points with other Oracle products are implemented via PL/SQL-based APIs.You can check a brief discussion for Order Management EBS Integration points.

  • Order Management(OM) Integration Options

Integration and interfacing with your front end application or any custom application you can easily managed. Two options are avaiable Order import and High Volumn Order Import. Check it out what suits your need

Order Mgmt. – Tables/Interfaces/APIs/Workflows


  • Line Flow – Generic
  • Line Flow – Generic, Bill Only
  • Line Flow – Generic, Ship Only
  • Line Flow – Return for Credit with Receipt


  • Application = Inventory
  • Code = SALES_ORDER
  • Title = Sales Order

Some Important Table Names


More technical details you can find post below:


Hope this good starting point for you.

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