In this blog I will explain Oracle Drop Ship Flow for R12i.
What is Dropship Order - In dropship Order, sales order line creates a requisition line that becomes a PO and sent to your supplier. You instruct your supplier to send the item or configured item directly to your customer only and items never physically pass through your warehouse, and therefore you do not pick, pack or ship them yourselves
In this blog I will explain the R12 Dataflow of Dropship order from OM to Oracle Payables.
Topics covered in this blog are
Drop Ship Sales order creation and booking.
Requisition Import
Auto Creation of PO
Receipt against PO
AP against PO
Since in Dropship we don’t receive the goods in our warehouse, SOURCE_TYPE will be “External”, where as for non-dropship orders it is Internal. Once Book, we cannot Changes SOURCE_TYPE.
We can change the SOURCE_TYPE as “External” for an item at the time of order creation, or we can define it permanently in the Item creation Setup, by setting Default SO Source Type = External.
Also as we don’t have any shipping activity in dropship orders, Receiving Transaction Processor (RTP) , triggered after Submitting the receipt will push the workflow from Shipping activity to Fulfillment.
R12 Dataflow of Dropship order from OM to Oracle Payables.
Step1 - Drop ship Sales Order Creation
Step2 - Source Type = External
Step3 -Once order is Book, order line workflow will be at Purchase release Deferred Status .
Step4 -Submit Workflow to progress the Order line workflow.
Step5 -Submit the requisition Import to create Requisition for Drop Ship
Step6 -Once requisition Import Completed successfully , Navigate to Order lines Action >Additional Information and then go to DropShip tab.
Step7 - Switch to Purchasing Responsibility and Navigate to Requisition Summary
Step8 -Query for Requisition Number
Step9 – Open the Auto Create Window and Query for Requisition #
Step9 –Auto Create
Step10 -Approve the PO
Step11 - Browse the Shipment Details of PO , (Shipment Button)
Step11 - Browse the Shipment Details of PO, (Shipment Button).We can select the Approval Level and Invoice Match Option based on your business requirements.
Step11 - Browse the Shipment Details of PO , (Shipment button).
Step11 - Browse the Shipment Details of PO , (Shipment Button), it will display Qty Ordered/billed/shipped etc.
Step12 - Browse the Distribution Details of PO , (Distribution Button).
Step13 - Navigate to receipts.
Step13 - Navigate to Receipt , system will prompt for Inventory Org , Select your Inventory Organization.
Step14 - Enter Receipt against PO.
Step14 -
Step14 -
Step15 - Once you save the Receipt , System will submit Receiving Transaction processor.
Step16 - RTP on successful completion Progress the OM Workflow and Line status change from Awaiting receipt to SHIPPED.
Thanks for this flow chart.It definitely valued information for new comers in drop ship business.Chinese dropship
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Thanks for this valuable document. Can give some idea about "Internal Drop Shipment".
ReplyDeleteRegards,
Krishanu Ghosh
krishanu4jobs@gmail.com
Hi Krishna
ReplyDeleteDrop shipping functionality enables you to take an order from your customer and fulfill it directly from your supplier's site.
So when you say Internal , can you please provide some additional info about what you mean by "Internal Drop Shipment".
I have additional Posting on Drop Ship at
Part-1
http://eoracleapps.blogspot.com/2011/04/drop-ship-sales-order-in-oracle-order.html
Part-2
http://eoracleapps.blogspot.com/2011/04/drop-ship-sales-order-in-oracle-order_05.html
Part-3
http://eoracleapps.blogspot.com/2011/04/drop-ship-sales-order-in-oracle-order_1811.html
Nice Blog.Thanx for the information.
ReplyDeleteOracle Applications
Can u please explain how SSD is calculated for drop shipment
ReplyDeleteFor External Line SSD = SAD , and we don't call ATP for external Sourced lines.
ReplyDeleteHope that will help you.
I understand that ,lets say you as a customer service ,takes an order and you might want to give a SSD to your customers ,That should be a the date that your vendor ships from his dock ,Suppose his lead time is 2 days.then the SSD should be ordered date + 2 days ,assuming the PO is approved and sent to the vendor same date and he acknowledges the same date .Now ,supplier can have lead time for products ,can be based on his capacity etc .How do we calculate an exact SSD ?
ReplyDeleteAnswer is not on top of my head , let me explore it....
ReplyDeleteCan you please tell me how the return process will be handled for Drop Ship Orders (An Automated process) ?
ReplyDeleteNote :
1.Customer will be sending the Product directly to the supplier
2.We have decided to use EDI for PO and ASN for drop Ship Order
Regards,
bala
Can you please tell me how the return process will be handled for Drop Ship Orders (An Automated process) ?
ReplyDeleteGood Question , let me get back to you on this.
ReplyDeleteI have added 2 additional posts to answer your question , please check those...
ReplyDeletehttp://eoracleapps.blogspot.com/2013/04/rma-flow-for-drop-ship-orders-in-oracle_20.html
http://eoracleapps.blogspot.com/2013/04/rma-flow-for-drop-ship-orders-in-oracle.html
HI, thanks for this information. is it possible to have a Delivery Note (packing slip) generated even for a drop ship sales order? Normally this document is generated by the supplier when he ships the goods to the final customer. but in some cases, the supplier can also be a competitor, and we don't the name of the competitor to appear on the Delivery Note when customer receives the goods.
ReplyDeletethanks
hi i have one question....in drop shipments.the ordered quantity are 50.but we have 30 quantity in our inventory.how to deliver this 30 quantity and remaining 20 quantity can u pls answer....................
ReplyDeleteThere is no difference here .Just receive the 30 Qty ( off course it will be virtual receive as this is drop ship case) , once you done with 30 receiving system will do automatically line split in Order management ( as this is partial receiving case)
ReplyDeleteIf you don't required the rest 20 any more you can cancel the newly created line ( created after split).But if PO is already created for 50 then system will not let you cancel the new line because of seed processing constraint.
Nice article
ReplyDeleteDrop shipment Part-1 Technical Overview
http://ebiztechnics.blogspot.com/2015/04/drop-shipment-part-1-tecnical-overview.html
Nice article
ReplyDeleteDrop shipment Part-1 Technical Overview
http://ebiztechnics.blogspot.com/2015/04/drop-shipment-part-1-tecnical-overview.html
Thanks a lot for taking so much time to write such a detailed review which has helped many.
ReplyDeleteOrder Management Software
Can you please hellp in understanding how the supplier will know where to ship the material in Drop Shipmemt. Since on the PO, I can see the Ship To location is of the organization creating the PO and not the end customer.
ReplyDeleteIs it that the supplier is asked outside the Oracle system to ship the material to the customer with their ship to address
Quick question, in case of drop ship, will oe_order_pub be able to calculate secondary quantity(items with dual UOM) on Sales order line? Thanks in advance.
ReplyDeleteHi..i have one query for DSF...user receipt the PO by mistake and noe SO lines has been shipped.Now user want to rollback this.Now we can not perform return transaction, as material is already utilized. Could you please suggest different scenarios here to rollback this transaction.
ReplyDeleteThanks
Thanks for sharing this informative blog with us.
ReplyDeleteit will help people for shipping.
DropShipping Products Sourcing
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ReplyDeleteThanks for sharing these info with us! this is a great site. I really like it. Thank you for the site best dropshipping businesses
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