Describe the processes involved after entering sales order?

The items specified on the order are validated in Oracle Inventory

The price of the items are calculated using the pricing engine

The availability of the items are checked and may be reserved

The items are then pick released and shipped to the customer.

Differentiate Supply Eligible Status and Supply Partial Status?

Supply Eligible: When there is no sufficient quantity available.

Example: When user tries to book a sales order for Item ‘TestItem’ for a quantity of 10 but the item contains zero quantity. Then the Sales Order Line Status change to ‘Supply Eligible’.

Supply Partial: When the quantity is partially available.

Example: When user tries to book a sales order for Item ‘TestItem’ for a quantity of 10 but the item contains only 4 quantities. Then the Sales Order Line Status changes to ‘Supply Partial’.

When is drop ship order created?

Customer requires an item that is not stocked normally

Customer requires large quantities of the item that is not available with you

It is more economical when the supplier sends the item directly to the customer

What is drop ship in OM?

A method of fulfilling sales orders by selling products without handling, stocking, or delivering them. The selling company buys a product from a supplier and has the supplier ship the product directly to customers.

OR

Drop Shipment is a process where the customer places a purchase order on a company and this company instructs its supplier to directly ship the items to the customer.

Drop Ship Process

Ø  Create Sale Order

Ø  Book Sales Order

Ø  Check Status

Ø  Progress Sales Order

Ø  Check Status

Ø  Release Purchase Order

Ø  Import Requisition / Purchase Order

Ø  Link between sales order and purchase order

Ø  Receive the material against purchase order

Ø  Check Order status.

Back to Back Order Process

Ø  Enter Sales Order

Ø  Book Sales Order

Ø  Progress Sales Order to create Supply Order

Ø  Requisition Import

Ø  Create Purchase / Inventory Receipt

Ø  Pick Release Sales Order

Ø  Ship Confirm