Oracle DropShip Process

Drop shipments are orders for items that our supplier ships directly to our customer.

Benefits of Drop Ship.

  • No inventory is required
  • Reduced order fulfillment processing costs
  • Reduced flow times
  • Elimination of losses on non-sellable goods
  • Elimination of packing and shipping costs
  • Reduced inventory space requirements
  • Reduced shipping time to your customer
  • Allows you to offer a variety of products to your customers
  • Items never physically pass through our warehouse, and therefore we do not pick, pack or ship them ourselves.

Drop Ship Process

  • Seller receives a SO from Customer.
  • Seller sends a PO to the Supplier.
  • Supplier ships directly to the Customer.
  • Seller receives an invoice from the Supplier and sends an invoice to the customer.
  • Only standard items can be drop shipped.
  • Drop Ship cannot be done across OU.
  • Only logical receiving is done.

Flow diagram

                              

Pre-Requisites

  • Item Attributes
    • Enabled
      • Purchased / Purchasable / Transactable
      • Customer Ordered / Customer Orders Enabled
      • OE Transactable

 

 

Functional Training

Sales Order Creation

Enter All the Header Information like Customer, Bill To, Ship TO, Order Type, Price List, Sales Person,….. in ‘Main’ Tab .

Go to others tab in header and Check all the parameters populated are correct

Like Warehouse, Shipping method, Payment &  Freight Terms etc…

Do the changes with appropriate details if required.

 

Enter item and qty in main tab and in the shipping tab enter source type as “External”.

 

Book the order and Run the workflow background, The Purchase Release program passes information about eligible drop-ship order lines to Oracle Purchasing.

Line status of the booked order will be Awaiting Receipt.

 

Requisition Import and PO creation

Now Run Requisition import taking the import source as “Order Entry”.

 

Requisition will be imported and the requisition number will be updated in the Order.

Query the order and go to line level and select the actions button for additional line information

 

From drop ship tab find the requisition number.

 

Auto creates the purchase requisition for the Imported Requisition.

Purchasing>Auto create

 

Approve the PO.  At line level in SO  PO number will be updated in the additional information Drop ship tab.

 

Receiving Material

Receive the item in to logical sub inventory Drop ship

 

Check on hand qty in the sub inv Drop ship in inv.

 

Now the line status will be shipped.

 

Run the work flow background to close the order.

 

 

Hands on Exercise

Data Base Column Details of the following fields in Order Header Form.

 

Hands on Exercise

Data Base Column Details of the following fields in Order Lines Form.

 

Query that will fetch the following details that are displayed in the Field Name.

 

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