When the customer orders the item, the price populates from the pricelist, here the price is 275, but when we do a PO to the supplier the price gets populated from the list price of the item, here in this example it is 10. does this price will not be carried from the order management to requistion.
Hi Sandeep, Your observation is correct for populating price in PO and SO. Price on SO is selling price and price on PO is buying pricing. And the difference between these price (minus overheads) will be your profit. Answere to your question is 'Price does not get carried from OM to requisition'.
Excellent Document ,Thanks for your effort . In Drop shipments ,supplier is supplying goods on behalf of company to customer,if customer wants to return goods ,how to handle this?
Hi Kiran, In Drop-ship your supplier is invisible to customer... he just ships the goods. For customer you are the seller + supplier. Also in Drop-ship you hold the PO from the customer as well as you have sales order (SO) against that PO... So in case of customer wants to return good, you need to raise RMA in reference with SO and get the material back. If that the repair is happening at your supplier site only then that location must be defined as internal location and inform customer to return goods at that location. Cycle will be same just you need to add address your supplier...
Awsome document. What we have here is combination of self inventory and Drop ship. SO we will need to do a auto inventory check and based upon the response do the drop ship. Also, I am looking for the setup changes which I need to make to streamline this.
Hi Dev, In that case you need to check the availability first and then put the drop ship order manually, I don't think there is any setup available to check inventory and on availability basis will put Drop ship order. You need to build customization for that.
I have one Question related to the Dropshipment. The scenario is as bellow:
One BG having two companies, one is at Dubai and another is in Nigeria.Both are different Ledger and Legal Entities.Nigeria company requesting the goods to Dubai company and Dubai company asking to his supplier to send the goods to Nigeria directly.
In this scenario, How the Nigeria company has to request the Goods to Dubai company??With Internal requestion or Purchase requisition? Please can you suggest the solution for the above scenario.
You said that "Only standard items may be drop-shipped; kits and models cannot be drop-hipped". But in R12 it's possible for Model and Kit.Please check again.
In Order Management User Guide, Page "Order Management Processes 12-57" mentioned the Dropshipment can be done for Model and Kit.
"When performing drop shipments of models or kits or standard items, the scheduled ship date is defaulted from the order line request date, and Oracle Global ATP calculations are ignored (demand for drop ship orders are not visible to Oracle Planning products). Drop Shipment orders cannot consume forecast demand for standard items, ATO items, and models and their respective components." Once i get time i will post the flow for the above scenario.
It was nice looking at your document, can you explain me what value in PO raised by our company gives the shipment details of customer to supplier, and how does this gets populated in requesition or purchase order, is there any setup required here and also give some clarity in terms of steups required and there importance.
Amazing document Dev.. Simply superb. Do you have any similar document for Back to back orders as well? I am just trying to understand the setup differences between Drop Ship and Back to back orders. Please let em know. Thanks Again!!
Could you please list out the differences in setups for Drop Ship vs back to back orders? In drop ship once product is received against PO, system automatically ships it out of the system. How does that happen for Drop ship but not for back to back orders? Which setup makes this difference? Please explain. Appreciate your response.
hi , dev, I am not able to enter the item i have created, in the price list, to continue with the drop ship process , IN VISION. Can you please help me out. thanx
I have a situation where an organization drop ships from the supplier to a construction site. 99 percent of the case, these items are one off items that will never be utilized. We don't find the need to support these items through the Oracle Item Master. Is there an alternative approach where we can set up items for drop shipment, change the descriptions at Order entry and then order the item from a Supplier requesting the supplier to drop ship the item to the customer's construction site.
Hi Devendra,
ReplyDeleteWhen the customer orders the item, the price populates from the pricelist, here the price is 275, but when we do a PO to the supplier the price gets populated from the list price of the item, here in this example it is 10. does this price will not be carried from the order management to requistion.
Regards,
Sandeep V
Hi Sandeep,
ReplyDeleteYour observation is correct for populating price in PO and SO.
Price on SO is selling price and price on PO is buying pricing. And the difference between these price (minus overheads) will be your profit.
Answere to your question is 'Price does not get carried from OM to requisition'.
Thanks
Devendra
Thanks Dev
ReplyDeleteExcellent Document ,Thanks for your effort .
ReplyDeleteIn Drop shipments ,supplier is supplying goods on behalf of company to customer,if customer wants to return goods ,how to handle this?
Pl clarify
Regards
Kiran
Hi Kiran,
ReplyDeleteIn Drop-ship your supplier is invisible to customer... he just ships the goods. For customer you are the seller + supplier. Also in Drop-ship you hold the PO from the customer as well as you have sales order (SO) against that PO...
So in case of customer wants to return good, you need to raise RMA in reference with SO and get the material back.
If that the repair is happening at your supplier site only then that location must be defined as internal location and inform customer to return goods at that location. Cycle will be same just you need to add address your supplier...
Thanks
Devendra Gulve.
Awsome document.
ReplyDeleteWhat we have here is combination of self inventory and Drop ship. SO we will need to do a auto inventory check and based upon the response do the drop ship.
Also, I am looking for the setup changes which I need to make to streamline this.
DO you have any suggestions...
Devendra Rai
Hi Dev,
ReplyDeleteIn that case you need to check the availability first and then put the drop ship order manually, I don't think there is any setup available to check inventory and on availability basis will put Drop ship order. You need to build customization for that.
Thanks
Devendra Gulve
Excellent Document!!
ReplyDeleteThanks for knowledge sharing...
Hi Devendra,
ReplyDeleteReally it's wonderfull and Tons of thanks for sharing your Knowledge.
Hi Devenra,
ReplyDeleteI have one Question related to the Dropshipment.
The scenario is as bellow:
One BG having two companies, one is at Dubai and another is in Nigeria.Both are different Ledger and Legal Entities.Nigeria company requesting the goods to Dubai company and Dubai company asking to his supplier to send the goods to Nigeria directly.
In this scenario, How the Nigeria company has to request the Goods to Dubai company??With Internal requestion or Purchase requisition? Please can you suggest the solution for the above scenario.
Thanks inAdvance,
Dayakar Reddy
Hi Dev,
ReplyDeleteYou said that "Only standard items may be drop-shipped; kits and models cannot be drop-hipped". But in R12 it's possible for Model and Kit.Please check again.
Thanks,
Ch.Dayakar Reddy
Hi Dev,
ReplyDeleteIn Order Management User Guide, Page "Order Management Processes 12-57" mentioned the Dropshipment can be done for Model and Kit.
"When performing drop shipments of models or kits or standard items, the scheduled
ship date is defaulted from the order line request date, and Oracle Global ATP
calculations are ignored (demand for drop ship orders are not visible to Oracle Planning
products).
Drop Shipment orders cannot consume forecast demand for standard items, ATO items,
and models and their respective components."
Once i get time i will post the flow for the above scenario.
Thanks,
Ch.Dayakar Reddy
Hi Dayakar,
ReplyDeleteThanks a lot for the comment.
If you want to make a artical I wud be happy to publish that articl on this blog...
Devendra
Hi Devendra,
ReplyDeleteIt was nice looking at your document, can you explain me what value in PO raised by our company gives the shipment details of customer to supplier, and how does this gets populated in requesition or purchase order, is there any setup required here and also give some clarity in terms of steups required and there importance.
Regards
Nagesh
Hi Devendra,
ReplyDeleteIs it possible to do Service Item dropship in Oracle 11.5.10.2?
Regards,
Apurva
Hi, Did you get answer for service items in the drop ship order?
ReplyDeleteThanks
G
Hi, I was wondering if you have come across a way to charge freight for a drop shipment to the customer invoice when using the External Source Type.
ReplyDeleteThanks,
Brenda
Hi Dev,
ReplyDeleteAwesome article. Thanks for your knowledge sharing.
I am a technical consultant, now I am learning functional setups.
I know how to define list price but I don't know how to define selling price and buying price in our system.
Regards,
Mahammad
Amazing document Dev.. Simply superb. Do you have any similar document for Back to back orders as well? I am just trying to understand the setup differences between Drop Ship and Back to back orders. Please let em know. Thanks Again!!
ReplyDeleteHi Dev,
ReplyDeleteCould you please list out the differences in setups for Drop Ship vs back to back orders? In drop ship once product is received against PO, system automatically ships it out of the system. How does that happen for Drop ship but not for back to back orders? Which setup makes this difference? Please explain. Appreciate your response.
hi , dev, I am not able to enter the item i have created, in the price list, to continue with the drop ship process , IN VISION. Can you please help me out. thanx
ReplyDeleteHi Dev,
ReplyDeletePlease let me know the relation between Oracle Purchasing and Oracle Order Management
Hi Dev,
ReplyDeleteI have a situation where an organization drop ships from the supplier to a construction site. 99 percent of the case, these items are one off items that will never be utilized. We don't find the need to support these items through the Oracle Item Master. Is there an alternative approach where we can set up items for drop shipment, change the descriptions at Order entry and then order the item from a Supplier requesting the supplier to drop ship the item to the customer's construction site.