Back 2 Back and Dropship Order Process in Oracle R12.2 - Doyensys Blog

10/28/22, 12:00 AM Back 2 Back and Dropship Order Process in Oracle R12.
2 - Doyensys Blog
DescriptionL
In Back to Backorder, the shipment process is also completed through OM as a

standard order after the item is received against a PO
This order type applies when customer orders a product which you do not stock or manufacture.
In turn customer places the order, you place the order with supplier and after the
shipment from the supplier, and you distribute the product to the customer.
Below is the flow chart for B2B process flow:
STEP 1: Item Creation for Back 2 Back orders
Item: Prism
Copy the Purchasing template.
Purchasing Tab: List Price : $15, Used Approved Supplier © enable
General Planning Tab: Source Type : Supplier, Make or Buy : Buy
Order Management Tab: Assemble to Order © enable.
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10/28/22, 12:00 AM Back 2 Back and Dropship Order Process in Oracle R12.2 - Doyensys Blog
Assign to our inventory.
STEP 2: CREATE APPROVED SUPPLIER LIST
Invoking: Order Management →Purchasing→ Supply Base→ Approved Supplier List
Lets create an Approved supplier List for the item we created (Prism).
STEP 3: Create Sourcing Rule
Invoking: Order Management →Purchasing→ Supply Base→ Sourcing Rule
We are going to create Sourcing Rule as: Prism_Sourcing.
Step 4: Assign Sourcing Rule
Query the ”Supplier Scheduling Assignment” set by using F11 key & paste our item,
Sourcing rule as below.
STEP 5: BOOK SALES ORDER
Now book the sales order and the status of the line will be Supply Eligible.
Select the Supply Eligible text →Right Click→Progress Order→OK
Now the status will be changed to External Req Requested as below.
Now run the Workflow Background Process from View→ Request
STEP 6: Requisition Import
Switch the responsibility to Purchasing and Run Requisition Import from View→ Request
Select Import Source as CTO.
Here Requisition Import and Create Releases Program runs and view the output, so that
we can make sure that the releases has been processed successfully as below.
STEP 7: QUERY REQUISITION
Invoking: Purchasing→Requsitions→ Requisitions Summary
Now query by the item: Prism (we created) and create the REQ as below.
Now if you check the sales order line status it will be External Req Open.
STEP8: AUTOCREATE PURCHASE ORDER
Invoking: Purchasing→Purchase Order→ Purchase Order Summary
Now let’s create a purchase order with the req # we created.
Now if you check the status of the sales order after creating PO, it will be PO Open.
STEP 9: Taking Receipt
Invoking: Purchasing→ Receiving → Receipts
Corresponding order # created:
Sales Order 10007
Requisition 15950
PO 6605
Receipt 23707
Here we took the receipt for the PO created and moved to the Sub Inventory FGI and
status will be changed to Awaiting Shipment as above.
STEP 10: PICK Release/ Ship Confirm
From here we can do normal Pick up release transaction in order to ship the order from
inventory to Customer.
Invoking: Order Management→ Shipping→ Release Sales Order
Invoking: Order Management→ Shipping→ Transactions
Running Workflow background Process.
Final status of order closed, which means the order has been shipped to the customer.
This completes the Back 2 Back order flow.
DROP SHIP Order Flow
Drop Ship is mere similar to Back 2 Back order except the supplier directly ships the order
to customer rather than our inventory.
Below is the flow chart for your reference.
All steps are similar except two changes:
Source type as External in sales order line
Import source as ORDER ENTRY while executing Requisition Import
STEP 1: SALES ORDER CREATION
Let’s start with placing a new sales order.
Follow similar steps as Back 2 Back orders.
Progressing Supply Eligible
Running Workflow Background process.
Now the status of the sales order line will be Awaiting Receipt.
STEP 2: Requisition Import
As discussed before, mention Import Source as ORDER ENTRY as below.
From here we follow P2P cycle.
Querying REQ, PO, taking Receipt as below.
Corresponding # created:
Sales Order 10008
Requisition 15951
PO 6606
Receipt 23708
Now if you check the status of the sales order line it will be shipped.
Run the workflow background process.
The status will be closed which means the order has directly been shipped to customer
rather than transferred to our inventory.
Different line Status of the Sales Order:
SL PROCESS BACK 2 BACK METHOD DROP SHIP METHOD

NO
1 SALES ORDER BOOKING SUPPLY ELIGIBLE SUPPLY ELIGIBLE
2 PROGRESSING SUPPLY External Req Requested Awaiting Receipt

ELIGIBLE
3 CREATING REQUSITION External Req Open Awaiting Receipt
4 CREATING PURCHASE PO Open Awaiting Receipt

ORDER
5 TAKING RECEIPT Awaiting Shipment SHIPPED
6 After Performing O2C CLOSED Not Applicable directly send

CYCLE to the Customer CLOSED
This completes the explanation about BACK 2 BACK METHOD & DROP SHIP METHOD in
Oracle EBS R12.
Queries?
Do drop a note by writing us at [email protected] or use the comment

section below to ask your questions.
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10/28/22, 12:00 AM Back 2 Back and Dropship Order Process in Oracle R12.

In Back to Backorder, the shipment process is also completed through OM as a

Below is the flow chart for B2B process flow:

STEP 1: Item Creation for Back 2 Back orders

Copy the Purchasing template.

Purchasing Tab: List Price : $15, Used Approved Supplier © enable

General Planning Tab: Source Type : Supplier, Make or Buy : Buy

Order Management Tab: Assemble to Order © enable.

Assign to our inventory.

STEP 2: CREATE APPROVED SUPPLIER LIST

Invoking: Order Management →Purchasing→ Supply Base→ Approved Supplier List

STEP 3: Create Sourcing Rule

Invoking: Order Management →Purchasing→ Supply Base→ Sourcing Rule

We are going to create Sourcing Rule as: Prism_Sourcing.

Step 4: Assign Sourcing Rule

STEP 5: BOOK SALES ORDER

Select the Supply Eligible text →Right Click→Progress Order→OK

Now the status will be changed to External Req Requested as below.

Now run the Workflow Background Process from View→ Request

STEP 6: Requisition Import

Select Import Source as CTO.

STEP 7: QUERY REQUISITION

Invoking: Purchasing→Requsitions→ Requisitions Summary

STEP8: AUTOCREATE PURCHASE ORDER

Invoking: Purchasing→Purchase Order→ Purchase Order Summary

Now let’s create a purchase order with the req # we created.

STEP 9: Taking Receipt

Invoking: Purchasing→ Receiving → Receipts

Corresponding order # created:

Sales Order 10007

STEP 10: PICK Release/ Ship Confirm

Invoking: Order Management→ Shipping→ Release Sales Order

Invoking: Order Management→ Shipping→ Transactions

Running Workflow background Process.

This completes the Back 2 Back order flow.

DROP SHIP Order Flow

Below is the flow chart for your reference.

All steps are similar except two changes:

Source type as External in sales order line

Import source as ORDER ENTRY while executing Requisition Import

STEP 1: SALES ORDER CREATION

Let’s start with placing a new sales order.

Follow similar steps as Back 2 Back orders.

Progressing Supply Eligible

Running Workflow Background process.

STEP 2: Requisition Import

As discussed before, mention Import Source as ORDER ENTRY as below.

From here we follow P2P cycle.

Querying REQ, PO, taking Receipt as below.

Sales Order 10008

Run the workflow background process.

Different line Status of the Sales Order:

SL PROCESS BACK 2 BACK METHOD DROP SHIP METHOD

1 SALES ORDER BOOKING SUPPLY ELIGIBLE SUPPLY ELIGIBLE

2 PROGRESSING SUPPLY External Req Requested Awaiting Receipt

3 CREATING REQUSITION External Req Open Awaiting Receipt

4 CREATING PURCHASE PO Open Awaiting Receipt

5 TAKING RECEIPT Awaiting Shipment SHIPPED

6 After Performing O2C CLOSED Not Applicable directly send

Do drop a note by writing us at [email protected] or use the comment

 Post Views: 4,143

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