PROCURE TO PAY CYCLE
ORACLE E-BUSINESS SUITE
SUPPLY CHAIN MANAGEMENT
PROCUREMENT
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Drop Shipments Setup
What is a Procure to pay process?
STEPS SUMMARY:
1) ITEM SETUP
2) PURCHASE REQUISITION
3) REQUEST FOR QUOTATION
4) QUOTATION
5) QUOTE ANALYSIS
6) CREATE PURCHASE ORDER
7) RECEIVING THE GOODS OR SERVICES
8) CREATE INVOICE
9) CREATE ACCOUNT ENTRIES
10) MAKING THE PAYMENTS TO SUPPLIER
PR
Approval
Manual PO
Standard program
Auto create
PO-BUYER
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Drop Shipments Setup
1) ITEM SETUP
Invoking: Inventory > Items > Master Items
Create an item using the Purchase template
To copy the purchasing template, enter the item, “FS Drop Ship Amps”, and
description, “FS Drop Ship Amplifier”, then click the “Apply” button and click the
“Done” button.
Tools > Copy From
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Inventory Tab:
Fields Value Comments
Transactable ☑ Enabled
Stockable Enabled
Reservable Enabled
Inventory Item Optional
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Purchasing Tab:
Fields Value Comments
Purchased ☑ Enabled
Purchasable ☑ Enabled
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Drop Shipments Setup
Order Management Tab
Fields Value Comments
Customer Ordered ☑ Enabled
Customer Orders Enabled ☑ Enabled
Shippable ☑ Enabled
OE Transactable ☑ Enabled
Internal Ordered Disabled
Internal Orders Enabled Disabled
Default SO Source Type External Order Management will default the value Internal. If you
do not wish to default a value for the Source Type field
for sales order lines, you must disable the seeded
defaulting rules for the order line attribute Source Type.
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Drop Shipments Setup
2) ASSIGN THE ITEM TO INVENTORY ORGANIZATIONS
Tools > Organization Assignment > the item must be assigned to both the source and
destination Organization.
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Drop Shipments Setup
3) UPDATE PRICELIST
Order Management > Pricing > Price List > Price List Setup
or
Oracle Pricing Manager > Price Lists > Price List Setup
Fields Value Comments
Name Corporate In the Header
Product Value FS Drop Ship Amps In the List Lines tab
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Drop Shipments Setup
4) SETUP PROFILE OPTION
OM: Population of Buyer Code for Dropship Lines SITE=Order Creator
All Drop Ship items must be defined in the organization entered in the profile option
OE: Item Validation Organization and in the Receiving Organization.
System Administrator > Profile > System
Profile Option Name Site Comments
OM: Population of Buyer Code SITE=Order Creator Set value to Null to have the
for Dropship Lines SITE=Order system retrieve the buyer
Creator information from the master item
Set the value to Order Creator
to let the system retrieve the
buyer information from the
employee id creating the
sales order
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Drop Shipments Setup
5) CHECK THE SETUP OF THE EXISTING SUBINVENTORY
All Drop Ship sub-inventory must have the “Reservable” box checked.
If the sub-inventory is not “Reservable” the Sales Order issue transaction will not
be created in MTL_TRANSACTIONS_INTERFACE.
Asset subinventories must have the Reservable and Asset boxes checked.
Expense subinventories must have the Reservable box checked and the Asset box
unchecked.
Setup -> Organizations -> Subinventories.
Fields Value Comments
Allow Reservations ☑
Asset Subinventory UNCHECKED
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Drop Shipments Setup
6) CREATE THE USER (Operations)
Create the user
Add Stock as a buyer
System Administrator > Security > User > Define
Screenshot here
7) Make sure Periods in General Ledger, Inventory, and Purchasing are open.
Navigation:
General Ledger Super User > Setup > Open/Close,
Inventory Super User > Accounting Close Cycle > Inventory Accounting Periods, &
Purchasing Super User > Setup > Financial > Accounting > Control Purchasing Periods
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Drop Shipments Setup
8) TEST THE DROP SHIPMENTS SETUP
Given:
The V1 and M1 Inventory Organizations already exist.
M1 subinventory, Drop Ship, exists.
Create Sales order for drop ship
1) Go to Order Management Super User > Orders, Returns, Sales Order
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Drop Shipments Setup
2) Go to the Line Item, Shipping tab. Make sure the Source Type is External
3) Book order the order.
Order line status is now Booked.
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Drop Shipments Setup
4) Go to Purchasing > Report > Run the Workflow Background Process
Parameters Value Comments
Item Type OM Order Line
Process Deferred Yes
Process Timeout Yes
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Click submit button.
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Drop Shipments Setup
Order status is “Awaiting Receipt”
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5) Import requisition request: Navigate to Purchasing > Report > Run > Requisition Import
Parameters Value Comments
Import Source ORDER ENTRY
Group By Item
Multiple Distribution No
Initiate Approval after Reqimport Yes
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Drop Shipments Setup
View output
Line Items > Actions > Additional line Information
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Copy Requisition Number
6) Purchasing > AutoCreate > Enter Requisition # > Find
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Click automatic
Click Create button.
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8) PO is created, click approve button.
Enter your email address then click OK.
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Drop Shipments Setup
Now the PO is approved.
Go to Purchasing > Purchase order > PO Summary
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8) Receiving in M1
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Enter DropShip in Subinventory.
9) Go to Purchasing > Report > Run the Workflow Background Process
Parameters Value Comments
Item Type OM Order Line
Process Deferred Yes
Process Timeout Yes
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Drop Shipments Setup
The order line status is now closed.
The End of testing. It works!
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