Sales Order Cancellation

Overview

Oracle Order Management provides the features you need to cancel sales orders, returns, internal orders, and service orders. The order cancellation feature of Order Management enables you to specify who has the authority to perform a cancellation request.

You can cancel entire orders or returns, or individual lines. A cancellation within Order Management is considered any reduction that occurs to existing order line quantity when an enabled processing constraint is invoked by an Order Management function during order processing. Therefore, any Order Management processing constraints you wish to use to control order quantity decrements must use the CANCEL operation.

If you choose to cancel sales orders or reduce existing order quantities, then Order Management attempts to perform the cancellation based upon the existing enabled Order Management processing constraints or user defined processing constraints. However, there can be certain points in order processing after which it is not logical or possible to cancel an order or line. For instance, you cannot cancel an order or line after it has been invoiced.

Order Management enables you to decide after which point lines can be cancelled, or after which point cancellation of lines needs to be prevented. You can define the cancellation point by enabling a constraint on operation Cancel, with "Require Reason and Require History" user action and a particular template such as "Entered" or "Booked". The particular template that you specify stands as the point after which reduction in quantity is considered cancellation and Order Management requires a reason for the change. However, if quantity is reduced before the line reaches the applicable cancellation point, then the application treats it as a mere reduction in quantity and not a cancellation.

Ensure that you define the cancellation point. Order Management provides "Booked" as the predefined cancellation point. The application treats attempts at both partial and complete cancellation prior to booking as changes of quantity and does not perform a cancellation. After booking, the application cancels the order or line and requires a reason at the time of cancellation.

Note: When you choose to cancel the remaining lines, an attempt is made to cancel all lines that are unfulfilled and unshipped on the order, however if one line fails to cancel then it would fail the entire operation. This is not intended to cancel lines that are cancellable.

Processing

Your processing constraints for orders and returns determine whether you can:

You can cancel:

Cancelling Partially:

Cancelling Completely:

You can cancel using:

You can require a reason for the cancellations based on the status of the order or line. For example, you may want to capture the reason for the cancellation if the line has been scheduled and may not require a reason if the line is booked. Reasons are defined in Quick Codes.

As long as an order is not subject to other restrictions that keep it from being cancelled, you can cancel an order:

An order or line cancelled will have a status of Cancelled, and a workflow status of Closed.

Processing Constraints

Use processing constraints against the CANCEL operation to:

To place the minimum restrictions on the cancellation process:

To record history for the cancellation, create processing constraints that require recording of history. The order processing includes the cancelled quantity in the history notation.

In addition to your processing constraints, there are system defined rules (system constraints) which forbid cancellation in certain instances. Oracle Order Management honors processing constraints which are stricter than the system constraints and ignores processing constraints which conflict with the system constraints: The system constraints forbid cancellation if:

Restrictions on canceling orders and lines

You can define processing constraints for cancellations. Depending on how you set up constraints, the system may or may not have a cancellation concept.

To set up a system without cancellation, define a system constraint that says cancel is not enabled after the line is shipped, and there are no user constraints. Decrementing is not allowed after the line is shipped, and all decrements in quantity before shipping will be treated as decrements, not cancellations. The reason for the change is recorded when provided by the user but it is not required for proper processing.

To use cancellation, you can define a system constraint that says cancel is not enabled after the line is shipped, and a user constraint that says cancellation requires a reason if the line is booked. Then, cancellation is not enabled if this line is picked. In this case:

Warning: You can prevent some responsibilities from cancelling, and you can enable some responsibilities to cancel if a reason is provided. This requires setting up two constraints.

Oracle Release Management (RLM) utilizes the processing constraints setup in Order Management (OM). Following two constraints are required for preventing order quantity update on pick released lines.

A request for decrease of order quantity on pick released lines will generate an exception message during demand processing. The order quantity will not be decreased. The request for increase in Order Quantity would insert a new order line with the incremental quantity.

If the CANCEL constraint is not setup, a quantity increase would result into insertion of a new delivery line but a quantity decrease would actually reduce the quantity on the pick released line.

The following processes describe enabling and disabling cancellation by responsibility.

To enable a responsibility to cancel when a reason is provided:

  1. Navigate to the Processing Constraints window in Oracle Order Management.

  2. Select the entity to be constrained.

  3. Select the operation to be constrained.

  4. Select the action to be taken if this constraint occurs.

  5. Enter the constraining conditions.

  6. Enter the responsibility constrained from performing this operation.

  7. Save the constraint.

    To prevent a responsibility from cancelling:

    Navigate to the Processing Constraints window in Oracle Order Management.

    1. Select the entity to be constrained.

    2. Select the operation to be constrained.

    3. Enter the constraining conditions.

    4. Select the responsibilities authorized to perform this operation.

    5. Save the constraint.

Cancelling Orders

Oracle Order Management Implementation Manual, Overview of Processing Constraints.

Oracle Order Management Implementation Manual, Defining Processing Constraint, Order Management Processing Constraints Listing Appendix.

Special Considerations for the Cancel function

Configurations

You can cancel:

You cannot cancel:

If you use either Oracle Configurator or the Order Management Options window to create configurations:

Included Item Partial Cancellation

Included items are automatically cancelled when you cancel the kit or model with which they are associated. If you have shipped some included items before their corresponding kit, class, or model and you attempt to cancel the kit, class, or model, Oracle Order Management automatically cancels the remaining included items. However, if you have shipped some required-for-revenue included items, your cancel quantity allowed on the included items' parent may be restricted to allow you only to cancel a parent quantity that includes whole ratios of any remaining required-for-revenue included items.

Returns

You cannot cancel the received quantity of a return line. Since return processing splits a partially received line, you can cancel the unreceived quantity portion of a line.

For returns of pick-to-order items, cancelling the model does not cancel the complete configuration because the return configuration is in individual return lines. To cancel a complete configuration, cancel the model line, option class lines, option item lines and included item lines.

Internal Sales Orders

Service Orders

When cancelling service orders and lines:

Drop Shipments

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.

While cancelling multiple drop ship lines, the application does not cancel any of the lines if cancellation of all the related purchase orders fails. However, if any such purchase order is cancelled successfully, then the application cancels all the selected drop ship lines. In this case, Order Management delinks, from itself, the purchase orders that cannot be cancelled.

Cancelling Orders

Oracle Order Management Implementation Manual, Defining Order Management QuickCodes