Search 800 + Posts

Nov 24, 2010

How to Create Drop Ship Sales Order Across Operating Units in Oracle Order Management (R12i)

This is detailed post along with Presentation about How to Create Drop Ship Sales Order Across Operating Unit.

Topics that I have included here are

  1. What is Drop Ship Sales Order 
  2. How to Create/Progress Drop Ship SO in Order Management 
  3. Steps to Create Requisition and PO  for Drop Ship SO in Oracle Order Management 
  4. Steps to Create Receiving against PO n Oracle Order Management .
  5. AP/AR Invoice Creation
  6. Intercompany Invoice Creation.
Please refer the below presentation for More details.


  1. Why does Oracle create two AR invoices? One AR invoice I can understand created in the Singapore OU for the goods the supplier shipped to US. And already US is paying through a Payables invoice back to Singapore. I didnt get the concept of why we have a third Intercompany AR invoice which Singapore is paying to US. Can you shed some light on this please?

  2. Please email me back at with your response to the question above. Its a great presentation and will help implementers very much

  3. I need to look into this , hope some one else can answer that ...

  4. As per Intercompany Setup , System will generate 3 invoices.
    1.AR Invoice from US Operating Unit to Customer..

    2.AR invoice in Singapore OU(Shipping OU) to US OU(Selling OU).

    3.And now US has to pay Singapore OU, so an AP invoice will be created in US OU .

    Hope that will helps

  5. Hi,

    Once the Intercompany AR invoice is been generated by the Shipping Org, now its the turn for the Selling Org to Invoice the Customer. How do i generate the Invoice to customer. Whether the Source should i use should be Intercompany or Order Entry. Please help.


    1. Order Entry ...Just like an Ordinary Sales Order.

      Hope that helps


  6. We are really grateful for your blog post. You will find a lot of approaches after visiting your post. I was exactly searching for. Thanks for such post and please keep it up. Great work. Dropshipping Agreement