Order Management
&
Advanced Pricing
1
AGENDA
• Overview of OM with Shipping & Adv. Pricing
• OM and Adv. Pricing 11i vs R12
• Process flows and Usability Improvements
•Other Major Enhancements
2
Oracle Applications R 12
Order Management
by
3
Order Management
• A highly effective and well integrated suite of
e-business applications for the enterprise
• Highly extensible and customizable to meet business
requirements.
• Designed for easy user interface
4
OM Process flow
5
Order Management – Integration
6
GL Order Import, Process Orders API GL
Inventory
Oracle
Inventory Interface
Move
Orders,
Pick
Release Invoice
, Pick
Interface
Confirm
APIs
Process
Scheduling/
Orders
API Sourcing API
7
Order to Cash life cycle
8
Order Management highlights
• Enables management of customer and customer
relationship information including defining ship, arrival
and fulfillment sets
• Automatically checks credit during order entry
• With iPayment integration, offers seamless credit card
verification
• Uses processing constraints set by responsibility to
control changes to orders
9
…..Order Management Highlights
• Permits holds to be defined using two entities
• Offers item cross-referencing usage as an entry option
• Allows decimal quantity handling
• Enables available-to-promise (ATP) viewing and
reserving across the supply chain
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….Order Management highlights
• Communicates demand to manufacturing
• Supplies product configuration capabilities for:
• Assemble-to-order (ATO)
• Pick-to-order (PTO)
• Sends comprehensive, detailed information to
Receivables for processing through Auto invoice
• Furnishes standard reports to assist business processing
and analysis
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Basic Order Process Flows
Standard shippable Standard shippable
Invoice only (Distributor) (Manufacturer)
1 1 1
Customer requests order
2 2 2
Enter order
3 3 3
Book order
4 4
Schedule
5
Release order to Manufacturing
5 6
Ship product and update inventory
4 6 7
Invoice the customer
Complete Complete Complete
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Order to Cash
Manage Sales Orders
Enter Sales Book and Allocate Pick
Satisfy Demand
Order Schedule inventory Confirmation
• Sales Orders can be • Booking • Produce Product – Make • Inventory allocation as per • Generate Pick slips
entered manually or • Validates customer available to Order predefined organizational • Pick material as per
imported from external credit limit • Provide services rules and policies, customer and
legacy systems • Legal binding between the • Procure product preferred customers e.g. regulatory
• Validates item, customer, customer and supplier • Procure to Order FIFO for perishable goods requirements
pricing • Scheduling • Drop Shipment (Shipment with limited shelf life or • Resolve inventory
• Validates configuration • Assign fulfillment warehouse from supplier to end LIFO for products with discrepancies
• Specify tax, shipping • Assign a shipment schedule customer) regular price increases in • Stage material for
constraints, invoicing date to meet requested date raw materials shipping
constraints and sales • Reserve inventory in a MTS • Warehouse Management
credits environment (Optional) inventory allocation rules to
• Provide Manufacturing improve picking efficiency
visibility and consume
forecast
Manage Collections
Customer
Confirm Financial
Generate Invoice Customer Follow Receipts and
Shipment Reconciliation
Up Cash Application
• Generate shipping • Generate customer • Customer Calls • Receive payments • Reconcile
documents for domestic invoice • Issuing Dunning letters from customers shipments with
and export compliance • Recognize revenue as • Customer disputes • Apply received invoicing
• Capture freight costs per industry specific payments against • Reconcile invoices
and surcharges norms and GAAP corresponding with customer
• Relieve Inventory • Send invoice to invoices payments
• Ship products and send customer
an ASN to customer 13
Order Entry
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Order Booking
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Move Order- Picking and Shipping
Move order Approve Move order locates
created move order material sources Pick Ticket
In case of shortage
move order
can be repeated Transaction
Destination Transaction Source
location location
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Ship Confirmation Business Flow
Order Ship
OM SE
Management Confirmation
Invoice
Information
Inventory Invoice
Information Information
INV Inventory AR Receivables
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Picking
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Shipment
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Shipment Confirmation
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Return Material Process
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Retro Billing Process
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Retro Billing Process - Request
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New Features in R12
– Multi-Organization Access Control (MOAC)
• Multi-Org Access Control allows you to view & manage set-up data across multiple
Operating Units without switching Application Responsibilities.
– Enhanced Inventory Reservations
– Customer acceptance of goods & Services
– Mass Scheduling, Scheduling ATO Items without BOM
– Customer Credit Check Hold Source Support across Operating Units
– Oracle Process Order Fulfillment is merged into Oracle Order
Management
– Pricing – An item can be tracked in two units of measure and priced in
either unit.
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….New Features in R12
– improved allocation (picking) rules and added features to Move
Orders.
– Additionally, the ability to price by a secondary quantity is available to
all users who track their inventory in two quantities.
– Process users can leverage all of the functionality in Order
Management, such as enhanced scheduling and reservations, and
international drop shipments, as well as Warehouse Management
System functions.
– Material status and grade - The preferred grade from the sales order
line can be used to pick the correct inventory.
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MOAC Process – View Transactions
(New in R12)
View
transactions
across multiple
Operating Units
Query transactions
across multiple
Operating Units by
leaving the field blank
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Picking Rules (New in R12)
Tracking Pricing for dual
UOM’s
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Move Order (New in R12)
Tracking Quantity
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Prices in 2 UOMs
Tracking Pricing for dual
UOM’s
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Dual Unit of Measure (New in R12)
• Support for Dual
Units of Measure
during Order
Capture
• Customers can Both primary and
secondary UOM
order in their Unit during order entry
of Measure
• Automatic
conversion
between primary
and secondary
Unit of Measure
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RMA Processing and Quality Inspection
(New in R12)
• Can receive in
primary or
secondary unit
of measure
• Lot traceability
support through
returns process
Lot level details
• Adhere to captured during RMA
process
safety and
regulatory
requirements
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Customer Acceptance Setup and Process
(New in R12)
SETUP PROCESS
Acceptance attributes
can be defaulted or be
Create sales order specified for SO line
Set deferral reason Process Acceptance
in AR
Explicit
Pick and ship
material Pre-billing Type of
Acceptance
Enable Fulfillment
Pre or Post
Acceptance in OM Yes
Billing?
Acceptance Implicit Record Acceptance
Required? (OIP / Order Import)
Expiration
Period
No Post-billing elapsed?
Legend Auto-
invoice
Automated process creates Process
invoice Acceptance
Normal Flow (Conc.
(without Acceptance) Prog.)
Pre-billing Flow
Post-billing Flow
Revenue Recognition
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Deferral Reason Setup in AR
Use Removal event as
Invoicing for ‘Pre-Billing
Acceptance’ and as
‘Customer Acceptance’ for
Post-Billing Acceptance
Attributes to be
specified for Implicit
Acceptance
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Acceptance Information Fields in Sales Order
Customer Acceptance related
fields enabled through Folder
Options
User defined Folder to
enable acceptance
related attributes
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New Features in Shipping
• User defined Ship Confirm Message Configuration
• Enhancements for Miscellaneous Shipments
• Shipping Purge
• Workflow Enabled Shipping Transactions
• Flexible Documents
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Shipping Message Configuration
Check Error or Warning for
each Message
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Shipping Message Confirmation
Ship Confirm
Ship Confirm displays
an Error (stops the user until the problem is
fixed/changed)
or a Warning (does not stop the user).
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Oracle Applications R 12
Advanced Pricing
by
38
Basic Pricing
• Basic pricing included in Order
Management enables you to:
• Set up price lists.
• Create static formulas
• Discount by percentage or amount
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Overview of Oracle Advanced Pricing
Oracle Advanced Pricing supports e-business applications by
providing a flexible pricing engine that executes pricing and
promotional calculations.
Oracle Advanced Pricing provides the flexibility to meet the
needs of complex pricing situations for a range of demanding
industry business requirements.
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Advance Pricing Features
Oracle Advanced Pricing provides advanced pricing capabilities that enable
you to set up your pricing information and to model complex data
relationships to determine the correct price.
• With Oracle Advanced Pricing, you can perform the following functions:
• Create a list price for an item or item hierarchy.
• Set a list price based on volume breaks.
• Create flexible, multilevel, currency-based price lists
• Create automatic and manual discounts based on item category, customer
agreements, customer purchase order or order type
• Create fixed-amount, percentage or unit volume discounts
• Create rule-based pricing structures
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Oracle Pricing
How it works
All
INPUT OUTPUT
Qualifiers = Eligibility?
Final Price
Attributes = What?
Select
Modifiers
PRICING ENGINE
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Qualifiers/ Modifiers
Who ?
Qualifier
History How ?
Price
Qualifier Modifier
Accumulation
What ?
Pricing
Attribute
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Basic Vs Advanced
Pricing
Feature Basic Advanced
• Price List Only one More than one
price list
• Qualifier Cannot be defined Can be done
& attached to PL
• Modifier Discount, Surcharge, Coupons, Deals,
Freight/Special charges Promotions….
• Formula Static Dynamic
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Price List
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Price List-Qualifiers
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Qualifier
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Formula
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R12 Advanced Pricing New Features
• MOAC for Pricing Security
• Recurring Charges
• Continuous Price Breaks
• Advanced Pricing Support for Purchasing
Global Blanket Agreements
• Price Books
• Support TCA Party Hierarchy
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Thank you
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