15.12.2018 Document 225434.

1
Copyright (c) 2018, Oracle. All rights reserved. Oracle Confidential.

FAQ: Drop Ship Purchase Orders (Doc ID 225434.1)

APPLIES TO:

Oracle Inventory Management - Version 11.5.1 and later

Information in this document applies to any platform.
Executable:RCVTPO - Receiving Transaction Manager

PURPOSE

FAQ for Dropship Purchase Orders.

QUESTIONS AND ANSWERS

Procurement (Purchasing)

RECEIVING: Drop Ship PO's - Release 10.7, 11.0, 11.5.X, r12

Frequently reported how-to questions relating to product specific programs.

Instructions for the reader: The articles below do not include bugs/patches or troubleshooting as these are
addressed in great detail in the notes referenced in the Oracle Purchasing: Receiving - RMA/Dropship section of the
Self Service Toolkit.

FAQ Summary

1. What is a Drop Ship PO?

2. How is a Drop Ship PO created?
3. What is the setup required for Drop Ship PO?
4. How can we avoid the miscounting of supply as logical organization is involved?
5. If you make changes to a Sales Order after the Purchase Order (PO) has been generated, will the order
changes automatically be updated on the PO?
6. If items on a Drop Ship order are cancelled, does the system automatically generate a PO Change to the PO
originally sent to the supplier?
7. Does Order Management 11i have functionality to do serial number management with Drop Shipments?
8. Can Configurable Items be Drop Shipped?
9. How do I Drop Ship across operating units?
10. How are over/under shipments handled in Drop Shipment?
11. Will Blanket PO's work with Drop Shipment?
12. Is it possible to create releases based on drop shipment orders for the items in the blanket agreement when
a valid Blanket PO is created ?
13. Can we cancel Drop Shipment after it is received?
14. What debugging tools are available for Drop Shipments?
15. What is the Import source and status of PO generated from Drop Shipment?
16. Can we receive a PO Shipment for which the related Sales Order Line is Cancelled / Closed?

FAQ Details

Q1. What is a Drop Ship PO?

A: Oracle Order Management and Oracle Purchasing integrate to provide Drop Shipments. Drop
Shipments are orders for items that your supplier ships directly to the customer either because you
don't stock or currently don't have the items in inventory, or because it's more cost effective for the

https://support.oracle.com/epmos/faces/DocumentDisplay?_adf.ctrl-state=1xqtsuo4t_377&id=225434.1 1/4
15.12.2018 Document 225434.1

supplier to ship the item to the customer directly. Drop Shipment was introduced in R11.

[top]

Q2. How is a Drop Ship PO created?

A: Drop Shipments are created as Sales Orders in Order Management. The Purchase Release
concurrent program or workflow in Order Management creates rows in the Requisition Import tables in
Purchasing. Then Purchasing's Requisition Import process creates the requisitions. Drop Shipments are
marked with the Source Type of External in Order Management and Supplier in Purchasing.

[top]

Q3. What is the setup required for Drop Ship PO?

A: ITEM ATTRIBUTES:
Navigate: Inventory -> Items - > Organization items
Purchased (PO) Enabled
Purchasable (PO) Enabled
Transactable (INV) Enabled
Stockable (INV) Optional
Reservable (INV) Optional
Inventory Item (INV) Optional
Customer Ordered (OM) Enabled
Customer Orders Enabled (OM) Enabled
Internal Ordered (OM) Disabled
Internal Orders Enabled (OM) Disabled
Shippable (OM) Optional
OE Transactable (OM) Enabled
All Drop Ship items must be defined in the organization entered in the profile option OE: Item
Validation Organization and in the Receiving Organization.
All Drop Ship sub-inventory must have Reservable box checked. If the sub-inventory is not Reservable
the Sales Order issue transaction will not be created in MTL_TRANSACTIONS_INTERFACE. After Drop
Ship inventory organization is created, subinventories should be defined. To create the subinventory,
go to an inventory responsibility and navigate to Setup -> Organizations -> Subinventories. Asset
subinventories must have the reservable and Asset boxes checked. Expense subinventories must have
the Reservable box checked and the Asset box unchecked.
Subinventory Attributes for Asset Subinventory
Reservable/Allow Reservations
Asset Subinventory
Subinventory Attributes for Expense Subinventory
Reservable
Asset-must NOT be enabled.

[top]

Q4. How can we avoid the miscounting of supply as logical organization is involved?

A: You must receive drop-ship items in a logical organization. If you use Oracle master
Scheduling/MRP and Oracle Supply Chain Planning, to avoid miscounting supply you may not want to
include logical organizations in your planning. If you choose to include logical organizations, ensure
that doing so does not cause planning and forecasting complications.

[top]

Q5. If you make changes to a Sales Order after the Purchase Order (PO) has been
generated, will the order changes automatically be updated on the PO?

A: Order changes will not be automatically updated on the PO. Pulling up the Discrepancy report will
allow you to view the differences between the Sales Order and PO. However, you will have to
manually update the POs in the Purchasing application. Please note: Sales Order changes will be
automatically updated on the PO if the PO Status is Incomplete or Require Re-approval. If the PO is
already approved, you cannot make changes to the Sales Order line (without un-approving the PO).

[top]

https://support.oracle.com/epmos/faces/DocumentDisplay?_adf.ctrl-state=1xqtsuo4t_377&id=225434.1 2/4
15.12.2018 Document 225434.1

Q6. If items on a Drop Ship order are cancelled, does the system automatically generate a
PO Change to the PO originally sent to the supplier?

A: No, Drop Ship functionality in this regard remains the same as in R11. There is a discrepancy report
available that will report differences between the PO and the Sales Order.

[top]

Q7. Does Order Management 11i have functionality to do serial number management with
Drop Shipments?

A: You are able to receive serial numbered Drop Ship stock. Order Management will receive the serial
number noted on the PO.

[top]

Q8. Can Configurable Items be Drop Shipped?

A: Currently only Standard Items can be Drop Shipped. Functionality for Configurable Items will be
added in future releases.

[top]

Q9. How do I Drop Ship across operating units?

A: Release 11i does not currently support this functionality.

[top]

Q10. How are over/under shipments handled in Drop Shipment?

A: If part of a drop-ship line ships, and you do not wish to fulfill the remaining quantity, cancel the
line. Over shipments must also be handled manually. If the supplier ships more than the ordered
quantity, you can bill your customer for the additional quantity or request that they return the item.
Use the Drop Ship Order Discrepancy Report to view differences between your drop-ship Sales Orders
and their associated purchase requisitions and orders.

[top]

Q11. Will Blanket PO's work with Drop Shipment?

A: Blanket PO's will not work with Drop Shipment because the PO must be created when OM notifies
PO that a Drop Ship order has been created. This PO is linked to the Drop Ship order so that when the
receipt is done (partial or complete) .OM is updated to receiving interface eligible. Drop Ship lines do
not use the pick release, ship confirm or inv interface order cycles.

[top]

Q12. Is it possible to create releases based on drop shipment orders for the items in the
blanket agreement when a valid Blanket PO is created ?

A: Yes, it is possible to create releases from drop ship orders automatically or via Autocreate window,
if the drop ship Requisition has the correct Blanket Information (Source)

1.Set up the ASL entry for the supplier site desired.

2.Depending on the hierachy determine which assignment better suits and define sourcing rule
according to the required level with the required supplier,site.

Also ensure that ASL entry exists for the above supplier/site.

For automatic sourcing to be done also set profile 'PO:Allow Automatic Sourcing' to Yes so that the
source document will be determined automatically depending on the creation dates and the type of
the document.

[top]

https://support.oracle.com/epmos/faces/DocumentDisplay?_adf.ctrl-state=1xqtsuo4t_377&id=225434.1 3/4
15.12.2018 Document 225434.1

Q13. Can we cancel Drop Shipment after it is received?

A: Drop Shipments cannot be cancelled once Oracle Purchasing obtains the receipt. A user who wants
to cancel a Drop Ship Sales Order line must ensure no receipts have been created against the line and
that the requisition and/or Purchase Order associated with the line is cancelled. Cancellation of a
Partial Drop Ship receipt is allowable. But only the portion that has not been received can be
cancelled. If you cancel a Drop Shipment line for which you have not shipped the entire quantity, the
order processing splits the line. The first line contains the quantity shipped and the second line
contains the non-shipped quantity in backorder. You can cancel the second line the backorder on the
Sales Order. The PO line quantity should be changed to reflect the new quantity.

[top]

Q14. What debugging tools are available for Drop Shipments?

A: 1. Note 133464.1 contains a diagnostic script that can be used for troubleshooting problems with
Sales Orders.
2. Debugging receipt transaction or the Sales Order issue transaction, Set the following profile options:
RCV: Processing Mode to Immediate or Batch
RCV: Debug Mode to Yes
OM: Debug Level to 5
INV: Debug Trace to Yes
INV: Debug level to 10
TP: INV Transaction processing mode to Background
-Then go to Sys Admin: Concurrent: Program: Define; query up the Receiving Transaction Processor
and check the Enable Trace box.
-Save the receipt for the deliver transaction (destination type will say Inventory for the deliver
transaction).
-View the Receiving Transaction Processor log file, the Inventory Transaction Worker log file, as well
as, the trace for the errors.

[top]

Q15. What is the Import source and status of PO generated from Drop Shipment?

A: Import source is Order Entry.

Status of PO will always be Approved.

[top]

Q16. Can we receive a PO Shipment for which the related Sales Order Line is Cancelled /
Closed?

A: PO Shipments for which the relates Sales Order line has been cancelled or closed cannot be
received. The PO shipment should be cancelled. A new Sales Order Line should be created, if needed.

[top]

Didn't find what you are looking for?

https://support.oracle.com/epmos/faces/DocumentDisplay?_adf.ctrl-state=1xqtsuo4t_377&id=225434.1 4/4