Ensure you have created your Order Management Transaction Types and linked your Transaction Types to order and line workflows that support drop shipments.
Ensure the Order Management profile option OM: Included Item Freeze Method is set accordingly. Depending on your installation details, additional application profile options may affect the processing of drop shipment order lines.
Ensure the Group Requisitions by Sales Order system parameter is set accordingly. The Group Requisitions By Sales Order system parameter determines whether the Requisition Import process will import all the drop ship sales order lines into a single purchase requisition even though the lines belong to multiple sales orders or whether the process will group all drop ship sales orders lines by sales order and then import them into multiple purchase requisitions.
For more information on this Group Requisitions By Sales Order system parameter, see Oracle Order Management Setup in the Oracle Order Management Implementation Manual.
Ensure the Oracle Workflow Background Engine is running.
Ensure all Drop ship locations you will use to perform drop shipments have the Ship To Site and Receiving Site defined.
Ensure you have defined the Internal Ship To Locations for your drop shipment customers (Oracle Receivables Standard Customer window, Business Purpose Details tab).
Ensure your standard items have an associated List Price defined within your PO Inventory organization (Oracle Payables Financial Options window, Supplier-Purchasing Tab).
For ATO Models, ensure the model an its option classes and option are purchased and purchasable, and follow the purchasing setup steps defined in setup chapter of the Oracle Configure To Order Implementation Manual.
Optionally, ensure that you have enabled the defaulting rule to default the sales order line, Source Type field. The defaulting rule for field Source Type utilizes the item attribute, Default SO (Sales Order) Source Type to default the value for the Source Type field for order lines.
Note: If you are using Drop Shipment Across Ledgers / InterCompany transactions refer to the section Drop Ship Across Ledgers and Change Management Overview.
Additional Details for Drop Shipments of Standard Items
When performing drop shipment of standard items, Order Management returns a scheduled ship date after the purchase release workflow activity completes.
Additional Details for Drop Shipments of Models, Kits and Configurations
For ATO models or kits, the Default SO Source Type attribute is inherited from the model by all items within the model. For PTO Models, the Default SO Source Type attribute is NOT inherited.
The defaulting and cascading logic for the order line Source Type field is:
For order lines belonging to a ATO configuration:
Default the value for Source Type for top level ATO models based on the defaulting rule
When a new option is added to a configuration, Order Management will default the value for Source Type (for the new order line added) from the top level ATO Model line
If you wish to change the value of Source Type, you will need to change the value on the model line. Order Management cascades a change to the Source Type value for all child lines of a model. Additionally, Order Management does not allow the change of source type at the option /class or configuration item level, and the rules for not allowing a change to the Source Type value after certain checkpoints within order line workflows still remain valid.
For non SMC PTO order lines:
The default source type on the components of a non SMC can come from the defaulting source.
The rules for not allowing a change to the Source Type value after certain checkpoints within order line workflows still remain valid.
Order Management will not cascade the value of Source Type for non SMC PTO models and associated child lines.
Individual lines under a PTO model (excluding SMC PTOs), including order lines with included items under a model, class, or a kit are sourced and drop shipped from individual suppliers based on your the value of the order line Source Type, the Planning item attribute Make, Buy Type and on your sourcing rules for each of these items or models.
You can choose to source a portion of a PTO model internally. If several order lines within a non-ship model complete PTO model are sourced internally and some externally, Oracle Global ATP is used to schedule the internally sourced lines, but Schedule Ship Date for drop shipped order lines are always defaulted from the drop shipped order line Request Date.
When performing drop shipments for ATO models, Order Management will return a schedule ship date equal to the Request Date as part of the order line scheduling workflow activity.
Oracle Global ATP is not used to schedule externally sourced lines. If you change the Request Date, the change will not be reflected in the Scheduled Ship Date; you must change the Scheduled Ship Date manually.
A warehouse is mandatory for ATO models and associated child lines to complete the scheduling function.
The Change Order Notification functionality within Order Management is suppressed for drop shipments of externally sourced ATOs items or models; no notifications are sent for order changes. Use the Sales Order and Purchase Order Discrepancy Report to note differences between the original sales order and its associated purchase order, and take the appropriate action.
If a change order or cancellation is made to order lines that contain a model, kit, or component of a model or kit, then the configuration is delinked.
If you to cancel a drop ship sales order line, you must ensure that no receipts have been created against the line.
If a partial receipt is created it will create a split line for the sales order; the remaining quantity not shipped becomes the quantity for the new, backordered split line. You will not be able to make changes to an externally sourced ATO Model once its configuration has been fully or partially received. However, if you wish to cancel the backorder order line, you can, provided the order line not been received.
Note: For remnant model lines and their child lines, cascading and configuration validation will not happen. Any changes that the user makes on any of the remnant lines will be treated as if the line is a standard line.
With this release of Order Management, if you have an order with mixed order lines (both internal and external sourced), as soon as any order line for a mixed PTO model has been shipped or received, the model is made a remnant.
In order to process PTO models that contain mixed order lines, you should enable header level invoicing or use fulfillment sets in order to be able to invoice the PTO model when all the lines of the PTO model are shipped. Header Level invoicing does not enable individual order lines for invoicing until all order lines are available for invoicing, and fulfillment sets do not enable an order to be fulfilled until all order lines reach the Awaiting fulfillment workflow subprocess.
The Purchase Release order line workflow activity enables the creation of requisitions for ATO items, configured items, and shippable components of non SMC PTOs.
For additional details on how list price is defaulted during Requisition Import and Purchase Release, see Oracle Purchasing User's Guide.
If you currently invoice only complete models and kits, you should use header level invoicing, or manually place all lines of a configuration (model or kit) within a Fulfillment Set. If Fulfillment Set or header level invoicing is not used, Order Management functionality enables non-shippable lines to be invoiced as soon as the first shippable component (line) for an order is shipped, with the remaining order lines to be invoiced as they are shipped.
You cannot change the Source Type order line attribute for any options or classes of ATO configuration.
Order Management validates that the purchasing enabled item attribute is set (check box selected) for all order lines under an external ATO Model.
Order lines for a SMC Model will not be allowed to be dropshipped.
You will not be able to make changes to an externally sourced ATO Model once its configuration has been fully or partially received.
If the source type of a model or ATO item is External, the branch on source type activity will branch to ATO item and build (for ATO model) branch respectively and will not progress to the dropship branch.
For configured items and ATO items, the CTO Create Supply - Line subprocess now validates the Source Type item attribute, and if the value is External, the Order Management Purchase Release workflow activity will autocreate Oracle Purchasing Requisitions.
If the source type of non-shippable components of a PTO or ATO model is External, the Oracle Purchase Release program will not insert records for these items within Oracle Purchasing interface tables. Instead, the line workflow for these items will be progressed to the next workflow additivity by setting the result to purchasing not applicable.
Sample Drop Ship Order Flows
Enter an order for a drop ship item.
Book the order.
Run Requisition Import.
Note: The Group Requisitions By Sales Order system parameter determines whether the Requisition Import process will import all the drop ship sales order lines into a single purchasing requisition even though the lines belong to multiple sales orders or whether the process will group all drop ship sales orders lines by sales order and then import them into multiple purchasing requisitions.
For more information on this Group Requisitions By Sales Order system parameter, see Oracle Order Management Setup in the Oracle Order Management Implementation Manual.
Create a purchase order from the requisition.
Approve the purchase order.
Receive against the purchase order.
Enter a sales order for the drop shipped ATO model.
Select the options.
Schedule and Book the order (Schedule date will default to request date for all lines.)
Create the configured item by progressing the order ATO Model line or running the Autocreate Configuration batch process.
Verify order and line status.
Create Supply Order (Drop ship requisition) by progressing the configuration item line or running the Autocreate Dropship Requisition batch process.
Run the Oracle Purchasing Requisition Import to create a Purchase Requisition.
Create a Purchase Order for the requisition.
Approve the Purchase Order.
Receive the Purchase Order.
Enter a sales order for the drop shipped ATO item.
Schedule and Book the order (Schedule date will default to request date for all lines.
Create Supply Order (Drop ship requisition) by progressing the configuration item line or running the Autocreate Dropship Requisition batch process.
Run the Oracle Purchasing Requisition Import to create a purchase requisition.
Create a purchase order for the requisition.
Approve the purchase order.
Receive the purchase order.
Enter a sales order for the PTO model.
Select options; Source type on the components will default.
Schedule and Book the order.
Run requisition import to create a purchase requisition.
Create a purchase order for the requisition.
Approve the purchase order
Receive the purchase order
See Additional Sample flows under Drop Ship Across Ledgers and Change Management Overview
For details on the required setup for a purchased item, see: Oracle Purchasing User's Guide, Oracle Inventory User's Guide, and the Oracle Configure To Order Implementation Manual.